ENVIRONMENTAL QUALITY BOARD
COMMONWEALTH OF PUERTO RICO/OFFICE OF THE GOVERNOR
                   AN EVALUATION
                    FINAL REPORT
                      Prepared For

          THE HONORABLE RAFAEL HERNANDEZ-COLON
       GOVERNOR  OF THE COMMONWEALTH OF PUERTO RICO
           LA FORTALEZA, SAN JUAN, PUERTO RICO

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         ENVIRONMENTAL QUALITY BOARD
COMMONWEALTH  OF PUERTO RICO/OFFICE OF THE  GOVERNOR
                      AN EVALUATION
                         FINAL REPORT

                         DECEMBER 1974
       Prepared for:
                THE HONORABLE RAFAEL HERNANDEZ-COLON
             GOVERNOR OF THE COMMONWEALTH OF PUERTO RICO
               LA FORTALEZA SAN JUAN, PUERTO RICO 00902

       Prepared under the sponsorship of:
           THE  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                           REGION II
                        26 FEDERAL PLAZA
                                 \
           GERALD M. HANSLER, P.E., REGIONAL ADMINISTRATOR

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       \
       I   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
\~   ~0
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     I understood from both Rafael Alonso Alonso, President of
the Planning Board and Carlos Jimenez Barber, Executive Director
of the Environmental Quality Board, that the draft report served
as a most useful document in your consideration of legislation
dealing with improved authorities for the Planning Board.

     It is hoped that any new legislation enacted concerning the
relationship between the Environmental Quality Board and other
Commonwealth agencies — especially the Planning Board—will both
enhance the ability of the executive branch in Puerto Rico to
conduct an optimum economic development program through improved
planning and priority setting, as well as maintain the integrity
of the Environmental Quality Board to assure protection of human
health, safety and well-being through the execution of its
regulatory powers.

     It is much more palatable for the Commonwealth agencies,
especially the regulatory agencies dealing with human health and
environmental protection, to take necessary action in the first
instance rather than rely upon a Federal agency to enforce similar
laws which apply in Puerto Rico.

     Again, the cooperation by members of your personal staff and
your cabinet officers and their staffs in providing information
for this evaluation has been very much appreciated.

     I look forward to discussing this and other outstanding issues
with you when next in Puerto Rico, at your convenience.
                                 Respectfully,
                                 Gerald M. Hansler, P.E.
                                 Regional Administrator
Enclosure

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 COMMONWEALTH  OF  PUERTO  RICO

 OFFICE OF THE GOVERNOR  /'^Iv^

 LA FORTALEZA, SAN JUAN
                                    April 30,  1974
Mr.  Gerald M. Hansler, P. E.
Regional Administrator
U. S. Environmental Protection Agency
Region n, 26 Federal Plaza
New York, New York  10007

Dear Mr. Hansler:

       I appreciated our recent meeting here in Puerto Rico and
your review of the status of various EPA projects and other issues.

       Your offer to arrange for an objective evaluation of the
Puerto Rico Environmental Quality Board,  our  Commonwealth agency
relationships in this field, and other major policy issues is most
welcome.  I would appreciate your providing me with more specific
data on the proposal before we proceed.  In particular, I would like to
see an outline of the areas and issues to be covered and the names
and background of the members of the evaluation team.  In this way,
we can insure that the evaluation is mutually agreed upon in detail
as well as in principle.

       With best personal wishes,

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    UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                               REGION II
                          26 FEDERAL PLAZA
                      NEW YORK. NEW YORK 1OOO7

                            June 17, 1974
Honorable Rafael Hernandez Colon
Governor of the Commonwealth of Puerto Rico
San Juan, Puerto Rico 00901

Dear Governor Hernandez Colon:

     This is in response to your letter of April 30, 1974 inviting
an objective evaluation of the Commonwealth's Environmental
Quality Board.  You specifically asked the scope of such evaluation,
and the names and background of the prospective evaluation team
members.

     The evaluation would consist of matters dealing with the
following:

     1. The overall legal authorities of the Environmental Quality
Board and areas of gap or overlap with other Commonwealth agencies;

     2. The legal authorities of other Commonwealth agencies and
public authorities such as PRASA and the Water Resources Authority;

     3. The identical functions performed by EQB and other agencies
which could perhaps be consolidated or coordinated, i.e., laboratory,
planning functions, permitting functions;

     4. The relationship of the operating arm of EQB (Executive
Director and staff) to the Board itself and to the Office of the
Governor;

     5. The adequacy of the EQB from an organization/management
standpoint;

     6. The adequacy of the EQB operating organization from both
dollar and personnel resources standpoint;

     7. And, any other matters about which you desire an evaluation
wi rh conclusions and recommendations.

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     The prospective three-man evaluation team consists of the
following:

     1. Richard Sullivan, past Commissioner of the New Jersey
        Department of Environmental Protection.

     2. David Schuenke, Director of EPA's Legislative Division
        in Washington, D.C.

     3. Herbert Barrack, Director of EPA's Region II Division of
        Management.

     Their resumes are attached.

     It is possible that they would begin their fact-finding in
late July if your response to this letter was affirmative.  A draft
report of their findings, conclusions, and recommendations would be
submitted to me for further review before finalization and transmittal
 ''if
to your office.

     I look forward to assisting you and the Commonwealth in this
endeavor.

                                    Sincerely,
                                    Gerald M. Hansler, P.E.
                                    Regional Administrator
Enclosures

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   COMMONWEALTH  OF  PUERTO  RICO
   OFFICE OF THE GOVERNOR

   LA FORTALEZA, SAN JUAN
                                 July 10, 1974
Mr.  Gerald M. Hansler, P. E.
Regional Administrator,  Region n
U. S. Environmental Protection Agency
26 Federal Plaza
New York, NY  10007

Dear Mr. Hansler:

   Thank you for your recent response concerning my request for an ob-
jective evaluation of the Commonwealth's Environmental Quality Board.

   I find the scope of the evaluation as stated in your June 17 letter to be
acceptable,  as well as the three-man team which you recommend.

   The Environmental Quality Board, Planning Board,  and Department of
Natural Resources have responded enthusiastically to the concept of such
an evaluation.   I believe you will be able to count with their full support.
EQB will provide office space,  clerical  support,  and appropriate coordi-
nators.   Mr. Rafael Alonso,  Chairman of the Planning Board, has also
agreed to designate a coordinator from his agency.

   Please finalize arrangements directly with Carlos Jimenez Barber.

   Many thanks for your kind acceptance of my invitation.  I am  looking
forward to the group's report.
                                    lae~l Jjerna'ijdez-Colo'n
                                 Governor  /

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                        TABLE OF CONTENTS

                                                               Page

Executive Summary	    1

   I.  Introduction  	    6

  II.  Environmental Law of the Commonwealth  	    7

 III.  Legislative Conflicts and Problems  	   10

  IV.  Structure and Functions of the Environmental
         Quality Board  	   12

       A.  Distinct Functions of Board of  Governors
             and Executive Director and Staff  	   12

       B.  Internal Operation of Board of  Governors . .	   14

       C.  Structure of Implementing Arm of EQB 	   14

   V-  Administration and Management of EQB 	   16

  VI.  Relationship of EQB to other Commonwealth
         Agencies  	   20


Footnotes 	   22-27

Appendix    I—Comments on June 20, 1973 Memorandum
               Describing the Responsibilities of
               Agencies Concerned with the Environment 	   28

Appendix   II--Proposed Amendments to Public Law No. 9 	   30

Appendix  III—Charts of cases, regulations and other
               matters submitted for the consideration
               of the Board of Governors 	   33

Figure 1—Organizational Units within EQB  	   39

Figure 2—Status of Funds Available as of  November 1, 1974...   40

Figure 3—Joint Resolution No.  76 of 1974  (General Budget)...   41-43

Figure 4—Budget for Operational Expenses, General Fund	   44
          Fiscal Year 1974-75

Figure 5--EPA Program Grants, Fiscal Year  1974-75 	   45

Figure 6—Staffing Levels as of November 1, 1974 	   46

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            REPORT OF THE EVALUATION TEAM ON THE
             ENVIRONMENTAL QUALITY BOARD OF THE
                COMMONWEALTH OF PUERTO RICO

                      December  1974
Executive Summary

     In 1970 the Commonwealth of Puerto Rico, by statute,
established the Environmental Quality Board.  Its function
is to set environmental policy binding upon all of Puerto
Rico and its agencies of government, and to adopt and
administer environmental laws enacted by the Commonwealth
legislature, with emphasis on air pollution control, water
pollution control, noise control and the disposal of solid
waste.

     This Board, one of the first environmental agencies of
the United States, has been operating for the past four years
-- a period of extraordinary change in the way the States
and the nation approach the environmental issues that confront
us.

     In June 1974 Rafael Hernandez Colon, Governor of the
Commonwealth, and Gerald M. Hansler, Administrator of Region
II of the U.S. Environmental Protection Agency, agreed that
an evaluation of the Board would be timely and helpful to
the Commonwealth in its environmental endeavors.

     While the Environmental Quality Board  (EQB) was to be the
focal point of the study, it was also agreed that attention
must be given to other agencies whose activities directly
affect the environment, including the Puerto Rico Aqueduct
and Sewer Authority, the Planning Board, and the Departments
of Health and of Natural Resources.

     Under the sponsorship of EPA, and with the approval of
the Governor, the following study team was assembled:

        David Schuenke, Director, Legislative Division, EPA;
        Herbert Barrack, Director, Management Division, EPA
         Region II; and
        Richard Sullivan, Princeton University, formerly
         Commissioner of New Jersey Department of Environmental
         Protection.

     The scope of the inquiry was defined as follows:

       Law          -  EQB statutory responsibility, the
                       organic law of other agencies having
                       some environmental functions, the
                       need, if any, for new law or amendments
                         -1-

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                       to existing law to clarify
                       responsibilities and avoid
                       overlap among departments;

        Structure   -  relationship of EQB to other
                       agencies with a view toward
                       further coordination and possible
                       consolidation;

        Management  -  adequacy of organization and
                       administration of EQB, sufficiency
                       of EQB finanical and personnel
                       resources and the relationship
                       of operating leadership of EQB
                       to the Board itself.

     The emphasis of the review was not to be the technical
content of EQB programs but the environmental law of the
Commonwealth and the form of the agency of government which
administers its provisions.

     In August 1974 the evaluation team spent a week in Puerto
Rico visiting EQB officials, the heads of PRASA, Department
of Health, Department of Natural Resources, the Planning Board,
and members of the Governor's staff and others.

     All arrangements for these conferences were very efficiently
made by officials of the EQB.  All of the representatives of
the Commonwealth who were consulted were most receptive, cordial,
and helpful to the study.

     In addition to these interviews the team reviewed docu-
ments concerning EQB's organization, budget, manpower, functions,
interaction with Federal agencies, construction projects, and
Federal grants of funds.

     Findings:

     1.   The environmental statutes of the Commonwealth
     generally are strong and progressive as to policy,
     authority to regulate pollution sources, and control
     of government actions which impinge on the environment.

     2.   Most of the legislated powers to regulate pollution
     of the environment are vested in EQB.

     3.   Powers relating to conservation and protection of
     natural resources are vested in both EQB and the
     Department of Natural Resources, creating uncertainty
     as to administrative responsibility.
                           -2-

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4.   Responsibility for the management of water
resources, especially planning, is diffuse.

5.   T\Jiere is considerable concern in EQB and in
PRASA as to the funding of the Commonwealth's share
of the costs of new wastewater treatment facilities.

6.   Authority to govern the disposal of solid waste
is distributed among EQB, Department of Health, and
the Department of Natural Resources.

7.   By law the membership of the EQB includes five
Commonwealth department heads, who are ex-officio
members, and three citizens appointed by the Governor.

8.   Because all relevant departments are represented,
the Board can be an effective mechanism for the
establishment of environmental policy.

9.   Ex-officio members are not authorized under the
law to designate a representative to attend meetings
when the member will be absent.  Therefore, quorums
are difficult to obtain.  Many meetings are called but
cannot convene.

10.  The statute charges the Board with responsibility
to carry out its provisions.  All administration, enforce-
ment, and policy direction are the Board's responsibility.
The Executive Director is not a department head; he is
not in charge of the agency with needed authority to
organize, supervise, and direct.

11.  Furthermore, because the Board is burdened with
so many administrative and enforcement tasks, and because
lack of quorums often prevents action, an unmanageable
number of issues are on the Board's continuing agenda.
These issues often go unresolved for considerable periods
impairing the orderly function of the agency, and
efficient implementation of the law.

12.  Still further, because the Board is preoccupied
with administration it has little time to serve as a
deliberative body devising environmental policy, probably
its most important responsibility.

13.  The statute itself explicitly authorizes the
appointment of two Associate Directors and prescribes
their program areas.  This has resulted in serious
imbalance of responsibility which the Executive Director
is legally unable to correct.
                      -3-

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14.  The failure to impose proper budgetary controls
in the past has resulted in an agency debt of almost
$400,000.

15.  Current staffing levels are inadequate to carry
out the Agency's legal responsibilities.

16.  Because of the low salary scale EQB has found it
difficult to recruit properly qualified staff.

17.  Based on a short visit the team finds that the
EQB officials are operating an agency which is responsible
and effective in performing its statutory assignments.

18.  A number of changes can be made, however, which
will make their work even more effective.

Recommendations;

1.   The Board  should be responsible for the establish-
ment of environmental policy governing the conduct of
all Commonwealth agencies.

2.   The Board  should be relieved of the day-to-day
management of enforcement.

3.   Ex-officio members of the Board of Governors should
use the Board as a vehicle for achieving the coordination
and implementation of broad environmental policy and
long-term planning.

4.   The Board  should have the power to veto regulations
proposed to be  adopted by the Executive Director.

5.   Ex-officio Board members should be empowered to
designate a single alternate to attend Board meetings
when the principal cannot.  The alternate would be counted
when determining the presence of a quorum, and would
have the full powers of a Board member.

6.   Authority and responsibility for administration
and enforcement should be given the Executive Director.

7.   The Executive Director should serve at the conveni-
ence of the Governor without a statutory term.

8.   The statute should provide for at least three
Associate Directors.  The statute should not define areas
of responsibility for these Associates, but should leave
assignment flexibility to the Director.
                      -4-

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9.   The statute should provide for a Deputy Executive
Director.  The Deputy would have responsibility to
act in the absence of the Executive Director.

10.  Consideration should be given to charging the
Deputy with responsibility to devise policy and to
direct short and long-term planning; vital activities
which now get insufficient attention.

11.  The statute should provide for appointment of the
Deputy and Associate Directors by the Governor based
on the advice of the Executive Director.  It should also
direct that these officials serve under the supervision
of the Executive Director.

12.  Management of all natural resources, other than
pollution control, should clearly be the responsibility
of the Department of Natural Resources.  This must include
water resources planning which is now done in part by
EQB.

13.  The established inter-agency working group should
proceed to early completion of its work so that apart
from statutory clarification, maximum administrative
coordination may be achieved among PRASA, Department
of Natural Resources, Planning Board, and Environmental
Quality Board.

14.  The prior years' debt should be covered by a
supplemental budget allocation so that the debt may be
liquidated without adversely affecting EQB's program
activities.

15.  The operations of the EQB personnel office should
be surveyed.

16.  An "action plan" should be developed directed
toward a "flexible salary administration."

17.  The practice of hiring "contract" employees should
be phased out where possible.

18.  New competitive personnel titles in an environmental
specialty series should be established with appropriate
and competitive salary scales associated with such
specialties.
                     -5-

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I.    Introduction

         In June 1974 Rafael Hernandez Colon, Governor of
      the Commonwealth of Puerto Rico, and Gerald M. Hansler,
      Regional Administrator of the Region II Office of the
      Environmental Protection Agency, agreed that an
      evaluation of the Environmental Quality Board would be
      in the interest of the Commonwealth in its environmental
      endeavors.  EQB was established as the major focal point
      of the evaluation since it is the Agency which is charged
      by law with responsibility for the establishment and
      implementation of environmental policy for the Common-
      wealth and which is continually involved with EPA in
      the environmental effort in the Commonwealth.  Additionally,
      although the time and resources to be devoted to this
      project were limited, attention was given to those
      agencies whose general goals were not specifically
      environmental in nature, but which have responsibilities
      in areas which directly affect the environment, such
      as the Puerto Rico Aqueduct and Sewer Authority (PRASA),
      the Planning Board, the Water Resources Authority, and
      the Department of Natural Resources and of Health.

         An evaluation team was proposed by Mr. Hansler and
      concurred with by Governor Hernandez Colon.  Its members
      were Richard Sullivan, former Commissioner of New Jersey
      Department of Environmental Protection; David Schuenke,
      Director, EPA Legislative Division, Washington, D. C.;
      and Herbert Barrack, Director, Management Division, EPA
      Region II.  The scope of the evaluation included the
      following topical areas:

         ,   legislative authority - EQB's areas of responsi-
             bility, lack of authority, overlap with other
             Commonwealth agencies, the authorities of other
             agencies specifically involved in environmental
             programs;

         •   program activities - functions of EQB and other
             agencies of the Commonwealth with a view toward
             further coordination and possible consolidations;

         ,   administration and management - adequacy of
             EQB from an organization/management viewpoint;
             EQB resources in dollar-amount and personnel;
             relationship of operating leadership of EQB
             to the Board itself.
                            -6-

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         The evaluation team's strategy was to spend one
      week in August 1974 visiting EQB offices, PRASA,
      Department of Natural Resources, Department of Health,
      and the Planning Board.   It was also to review a variety
      of documents and information related to environmental
      law, organization, functions, budget for the EQB,
      interaction with Federal agencies, manpower restraints,
      construction projects, and Federal grants.  The team
      members would then consolidate their assessments of the
      designated topics.  The findings and recommendations
      would be confirmed and forwarded to Governor Hernandez Colon,

II.    Environmental Law of the Commonwealth

      A.     Statutes

              The primary environmental law of the Commonwealth
           is contained in the "Public Policy Environmental
           Act of 1970"  (Title 12 LPRA 1121 et seq.), popularly
           known as "Public Law No. 9."

              In summary, this legislation:

              1.   establishes a public policy to bring man
              and environment into harmony in Puerto Rico;

              2.   authorizes all Commonwealth agencies to
              prepare an environmental assessment of each
              agency policy and decision and to work closely
              with the Environmental Quality Board and other
              government agencies in solving environmental
              problems;

              3.   requires all agencies to include in
              recommendations or reports on proposed legislation
              and other government action with effect on the
              environment, a detailed statement of the impact
              of that action on the environment;

              4.   establishes a Board on Environmental Quality,
              including the Secretary of Transportation and
              Public Works, the Secretary of Health, the
              Secretary of Agriculture, the Chairman of the
              Planning Board,  the Secretary of the Department
              of Natural Resources, and three technically
              qualified persons appointed by the Governor;

              5.   establishes an Executive Director and two
              Associate Directors to carry out the purposes
              of the law;

              6.   delineates the functions and duties of the
              Board, including:
                             -7-

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assessing through studies, inspection,
and analysis of the environmental conditions
of Puerto Rico

establishing standards of environmental
quality

adopting its own by-laws and regulations

administering funds for carrying out
this statute

establishing, through regulations, the
necessary requirements for control of
emissions and for the prevention, dimin-
ishing or control of damages to the
environment

cooperating with Federal agencies in
administering Federal law and with the
Commonwealth and municipal agencies

adopting rules establishing methods of
solid waste disposal, studying new methods,
and offering municipalities technical advice
in this field

requiring that notice be given to the
Board before any construction may begin
which has potential environmental harm.
Notice shall include assessment of the
environmental impact of the proposed activity

issuing provisional orders of notice to
the Planning Board prohibiting construction
of installations in violation of this
chapter

entering land to inspect environmental
conditions

instituting judicial actions to recover
full damages for environmental harm
resulting from violation of this chapter,
and to restrain such action

determining air and water standards upon
recommendations of the Secretary of Health
and the Secretary of Transportation and
Public Works
       _ Q_

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              7.  provides a mechanism by which the Board
              will conduct hearings, and provides appeal
              procedures from final resolutions of the Board;

              8.  designates the Board as an agency of the
              Commonwealth of Puerto Rico;

              9-   provides penalties of up to $25,000 per
              day for any person violating any provision of
              this chapter;

              10- provides for civil action suits by private
              citizens.

      In addition to the basic mandate of the Commonwealth
expressed in Public Law 9 charging the Environmental Quality
Board with policy responsibility and leadership in the pro-
tection of the environment, other laws place some environmental
responsibility in other agencies:

      •    The Puerto Rico Aqueduct and Sewer Authority
           (PRASA) is responsible for the planning, financing,
           and construction of municipal waste treatment
           plants. -L/

      •    The Department of Health has, among other authorities,
           responsibility for some aspects of the regulation
           of drinking water and protection of drinking water
           supplies. ?_/

      •    The Department of Transportation and Public Works
           has responsibility for planning, development, and
           utilization of water resources.-^/

      •    The Department of Agriculture has responsibility
           for pesticides regulation and for the protection
           and cultivation of forests.^/

      .    The Planning Board is charged with responsibility
           to plan and coordinate economic development, and
           to integrate Commonwealth policies (including
           environmental policy) into a comprehensive master
           plan. 5_/

      .    The Department of Natural Resources is charged with
           responsibility for implementing, with respect to
           the operational phase, the public policy of the
           Commonwealth as established by the Board of
           Environmental Quality as it relates to conservation
           of natural resources.6/
                            -9-

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      B.   Discussion:

              Commonwealth statutes amply provide for the
           regulation and protection of the environment
           and for a consideration of environmental factors
           involved in governmental actions.  Authority is
           provided for water pollution control, air pollution
           control, solid waste management, drinking water
           supply regulation, pesticides control, noise
           pollution control, oil spill prevention and regulation,
           and for an environmental assessment of all proposed
           governmental actions.

              The majority of the authorities with respect to
           environmental regulation and protection are vested
           in the Environmental Quality Board.

              Public Law No. 9 has laid an excellent foundation
           in law for the protection and enhancement of the
           quality of the environment of Puerto Rico in
           establishing the Board on Environmental Quality;
           in requiring that all governmental actions signif-
           icantly affecting the environment be fully analyzed
           with respect to the environmental implications of
           such actions; and in articulating the basic environ-
           mental ethic of the Commonwealth.

      C.   Recommendation:

              It is recommended that the basic approach taken
           in Public Law No. 9 be retained with respect to the
           establishment of environmental policy; the con-
           solidation of environmental authority and responsi-
           bility, and the requirement of environmental assess-
           ments of governmental action.

Ill.   Legislative Conflicts and Problems

           Perhaps the most significant problem stemming from
      the environmental legislation of the Commonwealth concerns
      the interrelationship of "Public Law 9" and "Public Law 23."
      These two laws,  respectively, define the responsibilities
      of the Environmental Quality Board and the Department
      of Natural Resources.  Unfortunately, the authority of
      the Department of Natural Resources is, in large measure,
      referenced back to the implementation of authorities
      in Public Law 9.
                         -10-

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     Although responsibilities for environmental
protection and for the protection of natural resources
are necessarily close, and at times inextricable, it
is possible to sort out responsibilities of the two
agencies with care and precision.

     The solid waste authorities are shared by the
Environmental Quality Board, the Department of Natural
Resources, and the Department of Health.  Such multi-
agency responsibility tends to complicate administration
and expeditious implementation of solid waste authorities.
At the least, it creates coordination problems in dealing
with solid waste management programs.

     The statutory authority for the planning of water
resources is scattered among a number of agencies, including
the Environmental Quality Board, the Department of Natural
Resources, the Water Resources Authority, and the Planning
Board.

Recommendations;

1.   It is essential that the duties and responsibilities
     of the Environmental Quality Board and of the
     Department of Natural Resources be sorted out.  It
     is hoped that the delineation of the duties and
     responsibilities of the two agencies can be accomp-
     lished administratively.  The memorandum of June
     20, 1973  (see Appendix I) is an excellent, but
     as yet incomplete, effort to delineate the respective
     responsibilities of EQB, DNR, and the Planning Board.
     The completion of that delineation should be pursued.

2.   Responsibility for the management of natural resources
     should be clearly and explicitly lodged in the
     Department of Natural Resources.  The Executive
     Director of the Environmental Quality Board should
     not attempt to construe statutory requirements for
     the regulation and protection of the environment
     so broadly as to embrace matters of resources
     conservation.  Clarification of the respective duties
     of the Environmental Quality Board and the Department
     of Natural Resources under Public Law No. 9 and
     Public Law No. 23 is essential.   (See Appendix'I
     for comments and suggestions with respect to memorandum
     of June 20, 1973, describing the responsibilities
     of the agencies concerned with the environment.)
                        -11-

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      3.   Water resources planning should receive a central
           focus in the Department of Natural Resources.

      4.   The solid waste regulatory authority should be
           consolidated in the Environmental Quality Board.

IV.   Structure and Functions of the Environmental
        Quality Board

      A.   Distinct Functions of Board of Governors
             and Executive Director and Staff

           The Board of Governors functions cumbersomely and
      slowly-  Numerous enforcement and administrative matters
      (many of a routine nature) are presented to the Board
      (see Appendix III).  It would appear that the abilities
      and energies of the Board are misapplied on routine
      administrative and enforcement matters.  In addressing
      these matters the board is often obliged to review numerous
      detailed, technical studies and reports, case histories,
      legal pleadings, and scientific data.  This appears to
      be wasteful of the time and ability of a cabinet level
      body such as the Board which is charged with the con-
      sideration and development of basic policies and long-term
      strategies.  By burdening the Board with the minutiae of
      routine enforcement and administration, the opportunity
      to address and to devise long-term environmental policy
      for the Commonwealth is often lost.  The purposes of
      "Public Law No. 9" could better be achieved if the Board
      capitalized on the presence of its Cabinet level, policy-
      making members, to address fundamental environmental policy

           On the other hand, the authority of the Executive
      Director to manage the day-to-day affairs of the agency
      and to enforce environmental requirements pursuant to
      law and regulation is undermined by the involvement of
      the Board in these matters.  The effectiveness of the
      Executive Director is hampered by the necessity to receive
      prior approval or subsequent ratification from the Board
      for every executive decision.  In short, the Executive
      Director is not permitted to direct the agency or act
      as its executive officer in the full sense.  This cannot
      fail to detract from the full potential that could be
      achieved by the agency.

      Recommendations:

      1.   The policy role of the Board of Governors should be
           clarified.

           The excellent potential provided by the existence
           of the Board of Governors of EQB and its legislative
           mandate under Public Law No. 9 can best be realized
           if the Board of Governors gives priority attention

                           -12-

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     to the development of environmental policy and
     is relieved of the necessity of reviewing, super-
     vising, and directing the routine implementation
     and enforcement of environmental safeguards.

     The Board of Governors of EQB can provide a valuable
     service to the Commonwealth if it addresses environmental
     policy and provides guidance with respect to such
     policy in the broad terms provided by Public Law No. 9-
     In this regard, "environmental policy" should not be
     narrowly construed as limited to the matters of
     environmental protection and regulation, which are
     implemented by the Executive Director of EQB and
     his staff.  It should be construed to include all
     matters affecting the environment, including matters
     vested in EQB, PRASA, the Department of Natural Resources,
     the Water Resources Authority, the Department of Health,
     the Planning Board, and others.   (See Appendix II for
     specific suggested amendments to Public Law No. 9
     intended to accomplish these recommendations.)
2.   The role of Executive Director as to implementation
     and enforcement should be clarified.

     The Executive Director's role should be clarified to
     permit him to direct and supervise the regular
     implementation and enforcement of environmental
     protection authorities pursuant to law and established
     policy without the necessity of submitting these
     matters to the Board of Governors.  The Executive
     Director should be responsible for:

         (a)   formulation of regulations;
         (b)   issuance of cease and desist orders;
         (c)   initiation of court actions;
         (d)   issuance of permits and licenses;
         (e)   internal organization of the agency;
         (f)   conduct of public hearings and aggrieved
               party hearings;
         (g)   assignment of duties to personnel and
               supervision of their work.

3.   Short, intermediate, and long-term planning and
     policy development should be pursued by the Executive
     Director.

     This would equip the Executive Director and his staff
     to pursue  their regulatory implementing functions
     in an effective manner and would provide the basis
     for policy recommendations to be made to the Board
     of Governors.   Consideration should be given to
     the possibility of assigning the planning and policy
     development responsibility, as a primary function,


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     to the Deputy Director.   (See discussion of Office
     of Deputy Director in  "C" below.)

4.   Responsibility for the preparation, revision, and
     amendment of rules and regulations in implementation
     of environmental protection laws should be explicitly
     lodged in the Executive Director.

5.   The Board of Governors of EQB should have responsi-
     bility to review regulations proposed by the
     Executive Director, and the power to reject proposed
     regulations by majority vote.  In cases where the
     Board of Governors rejects proposed regulations,
     it should be the responsibility of the Executive
     Director to propose new regulations.  (See Appendix
     II for suggested legislative amendments to accomplish
     these recommendations.)

B.   Internal Operation of Board of Governors

     The Board of Governors  is not able to function
efficiently because of limiting procedural requirements.
The heart of the problem appears to be the necessity
that ex-officio members attend Board meetings in person.
Ex-officio Board members may not designate alternates
to represent them.  Under these circumstances it is often
difficult to obtain or keep the necessary auorums.  It
is then necessary to reschedule numerous meetings of the
Board.

Recommendation:

     Ex-officio members should be able to designate
alternates who will be counted for purposes of determining
quorums and votes of the Board.    (See Appendix II for
specific suggested amendments intended to accomplish this
recommendation.)

C.   Structure of Implementing Arm of EQB

     The principal organizational units that have responsi-
bilities for programmatic and staff functions within EQB
are shown in figure 1.

     Under the current organizational structure, the chief
operating official is the Executive Director.  He is
directly responsible to the Board and oversees the operations
of the entire organization under the provisions of the
statute establishing the Environmental Quality Board
(Public Law No.  9).   There are two Associate Directors.
One is statutorily assigned responsibility for air and
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water programs.  The other is similarly assigned responsi-
bility for solid waste programs.  The Associate Director
for Solid Waste has also assumed responsibility for the
establishment of a Noise Control program.  Since EQB's
organization must reflect the legislative responsibilities
assigned to each Associate Director, there is little
flexibility afforded in organzing the EQB program responsi-
bilities along any lines other than the current structure
without legislative amendment.

     The statutory provision assigning specific responsi-
bilities to the two Associate Directors creates an
imbalanced situation in terms of both workload and staffing.
Consider the following:  the solid waste and noise programs
have a combined Commonwealth and federal budget of
$240,000, whereas the air and water programs have a
combined budget of $1.72 million.  In addition, the water
program includes the review of PRASA construction plans
and responsibility for preparation of the priority list
for Puerto Rico's federal construction grant allocation
of $85,000,000.  EQB is required to review and make priority
certifications of PRASA construction grant applications
before final submission to EPA.  Past experience has
shown that the lack of ability to expeditiously process
such reviews could serve to jeopardize the Commonwealth's
dollar allocations since the funds must be obligated prior
to the expiration dates for their availability.  The
current status of the Puerto Rico federal construction
grant allocation under the Federal Water Pollution Control
Amendments of 1972 (P.L. 92-500) is shown in figure 2.

Recommendations:

1.   It is recommended that the Executive Director be
     appointed by the Governor and confirmed by the
     Senate.

2.   It is also recommended that at least three associate
     directors be appointed by the Governor based upon
     the advice of the Executive Director.  Their functional
     areas of responsibility should be defined by the
     Executive Director as he deems necessary and
     appropriate.

3.   It is further recommended that the position of Deputy
     Executive Director be established.  This key post
     would serve to provide continuing direction during
     any absence of the Executive Director.  The Deputy
     could coordinate operations and might be assigned
     responsibility to formulate policy matters for the
     Board.  It is our view that establishing a high
     caliber executive core within EQB would strengthen
     the operation of EQB's programs.  The legislative
     amendments that could accomplish these organizational


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           changes are contained in Appendix II.

V.   Administration and Management of EQB

           Considerable progress in the management of EQB
     has been made since it became operational in December 1970.
     Improvement has been shown in such areas as planning,
     budgeting, and control of operating resources.  The agency
     is faring far better today than was the case in prior
     administrations.  During the formative years EQB experienced
     considerable difficulty in controlling and accounting
     for costs and for funds received from the Commonwealth
     and Federal grants.  As a result, an over-expenditure
     situation developed and the current EQB budget continues
     to carry a line item for "payment of debts incurred in
     previous years" in the amount of $394,635.  This represents
     the amount available in the current fiscal year to repay
     the cumulative prior year deficit of $807,334.66.
     Accordingly, $412,699,66 remains unpaid.

           EQB now appears to have established an adequate
     and effective accounting system, and significant improvements
     have been made in its procedures, practices and internal
     controls.  However, the position of internal auditor has
     been vacant for some time.  This is a vital responsibility
     and, in view of prior years' fiscal difficulties, it is
     recommended that intensive efforts be undertaken to fill
     this position.  Our review indicates that the Executive
     Director has instituted procedures to assure that the
     expenditure of funds conforms to the Agency budget.
     However, the inclusion of the carryover debt in the
     Agency's budget as an allocation of current year funding
     places a heavy burden on EQB in that it significantly
     reduces their ability to maintain adequate staffing on
     an already austere budgetary allocation.  The General
     Budget is shown in figure 3.

           It is recommended that the prior year debt be covered
     under a supplemental budget allocation so that it may be
     liquidated without adversely impacting EQB's current or
     future programmatic activities.

           The nine programs and subprograms of EQB shown in
     figure 4 are jointly funded under a Commonwealth fiscal
     year 1974-75 budget of $2.3 million and a Federal EPA
     grant program of $1.0 million  (figure 5).  The nature
     of EQB's activities requires that it be responsive to
     social and economic development programs in Puerto Rico.
     It is important that EQB be adequately staffed so that
     the environmental effects of proposed development may
     be reviewed carefully and promptly to assure environmental
     quality and compliance with Commonwealth and Federal
     statutes, guidelines, standards, and regulations.
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     We found the current staffing levels and the
nature of special appointments, i.e., provisional and
contract, are inadequate to perform the work required
by the Commonwealth's environmental protection statutes.

     The technical functions and programs are plagued
continually with staff shortages as evidenced by an
inability to recruit and retain trained staff due to low
salary civil service levels assigned to technical and
scientific positions as compared to private industry
and exempt quasi-public Commonwealth agencies.  This
problem is compounded by the fact that there is an acute
shortage throughout the United States of the various types
of professionals needed for environmental programs.

     The current staffing levels of EQB are shown in
figure 6.  The EQB professional staff possesses an
impressive array of technical credentials based on education
and experience.  A significant number of the professional
personnel hold a Bachelor's degree and several possess
advanced or professional degrees at the Master's and
doctorate (or equivalent) levels.  The academic fields
of specialization represented on the EQB staff include:
civil, sanitary and chemical engineering, physics and
chemistry, biology and zoology, air pollution meteorology,
geology and hydrology, planning and public administration,
economics and behavioral sciences.  However, the vacancy
rate is extremely high in the regular civil service
category at 25 percent of authorized positions.

     The inability to recruit appointments through the
competitive system has made it necessary for EQB to
sustain its efforts through the hiring of scientists
and specialists on contract.  The Executive Director readily
concedes that people on contract perform similar functions
to those in regular positions, however, he states that
the contract arrangement provides absolutely essential
specialized capabilities to the Board.  As a result of
these contracts, morale problems often crop up when
salary levels for contract employees exceed civil service
levels for comparable assignments.  It is our understanding
that Commonwealth policy has called for a vigorous program
to rid all governmental agencies of provisional and other
appointments in which the incumbents cannot fulfill all
requirements of the merit system.  Also, the Department
of Personnel has recently stepped up its efforts, in view
of complaints received from Federal auditors, with respect
to such appointments in federally funded programs since
all appointments under such programs must be competitive
and comply with equal employment program practices.  As a
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result, EQB recently lost 20 people who were in provi-
sionally appointed positions, 12 of whom were in the
Water program.  The Executive Director has attempted on
numerous occasions to speed up the process of referrals
of qualified names, which is done presently on the basis
of five at a time.

     In a letter dated May 20, 1974, addressed to
Governor Rafael Hernandez Colon, from Carlos M. Jiminez
Barber, Executive Director, EQB, the problems of profes-
sional staffing were presented with a request for an
executive order to place EQB in an exempt status under
the provisions of the Law of Personnel No. 345 dated
May 12, 1947, as amended.  While there are certainly
many factors which would bear upon any decision to establish
EQB positions under an exempt service status, it is our
view that recognition of the serious staffing shortage
in the environmental field is needed.  Clearly, it was
impossible within the time constraints of this evaluation
to fully evaluate the adequacy of all activities performed
by EQB.  However, the significant number of key technical
vacancies, the turnover of trained scientific and
engineering personnel and the heavy reliance on contract
services indicate manpower deficiencies are quite prevalent.
This is attributable primarily to the limitations imposed
by the current civil service salary scales for environmental
professional categories and the general shortages of
people in these areas in relation to the demand.

     An EPA regulation published in the Federal Register,
Title 40, Vol. 39, No. 191, dated October 1, 1974,
Part 35, State and Local Assistance under Administration
of Construction Grants, authorizes fees to be charged for
state performance of review functions related to con-
struction grant activities.  This regulation is significant
to State agencies, such as EQB, since it allows, under
certain conditions, reimbursement to the State agency
for direct costs associated with the construction grant
review process.  The delegation of this review authority
by EPA would be dependent in large measure upon the pro-
fessional capabilities and adequacy of the staffing
available to assume these activities.  Funding in an amount
not to exceed one half of one percent of the State's
construction grant allotment for each fiscal year may be
realized by eligible States over and above the current
Federal program grants.  This regulation provides an
incentive for EQB to pursue a personnel program that would
not only result in adequate professional and scientific
staffing levels, but a means of funding as well.
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      As a result of our discussions with Commonwealth
Department of Personnel staff and the EQB staff, we
feel an improved working relationship between the
respective parties is needed.  It is our view that an
intensive cooperative effort between EQB and the Depart-
ment of Personnel would effectively serve to strengthen
the overall personnel program of the Board on both a
short and long term basis.  The following recommendations
are offered in this regard:

      1.   The operations of the EQB personnel office
           should be surveyed and organizational steps
           should be taken to gain better insight and
           understanding of the requirements and
           operations of the Commonwealth merit principles
           and programs.

      2.   A formal "action plan" should be developed
           for EQB as a joint venture of the Department
           of Personnel and EQB's Office of Personnel.
           This plan should be directed towards establish-
           ing an approvable program for "flexible
           salary administration" and one that also
           adopts the training and scholarship programs
           offered by the Commonwealth's Civil Service
           System.  It is our understanding that the
           Law of Personnel, No. 11 of July 1974,
           establishes the authorities for agencies to
           gain approval for their assumption of the
           administration of various aspects of their
           personnel programs, i.e., promotions, training,
           appointment authority, etc.  A report should
           be sent to the Office of the Governor as a
           result of the joint review along with an
           implementation schedule.

      3.   The practice of "contract" employees should be
           phased down in line with the implementation
           of a long range recruiting and staffing plan
           that would set as its goal a stable personnel
           program within the merit system.  However, it
           should be recognized that in given programmatic
           areas contracting is an acceptable method for
           obtaining the services of experts under certain
           circumstances.

      4.   Rather than have the Department of Personnel
           classify positions in a group category, it
           is recommended that special competitive titles
           be established under an "environmental specialty"
           series.
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           5.    In order to recognize scientific shortage
                categories, it is recommended that special
                recruiting authority be granted EQB within
                the provisions of Department of Personnel
                standards.

           6.    Positions determined to meet the criteria
                for scientific and engineering shortage
                categories should be placed on special
                salary scales which would help to close the
                salary gap that now exists.  This would serve
                to help EQB become competitive in scientific
                and engineering positions with business,
                industry and exempt Commonwealth agencies.

           The advice and recommendations of the Commonwealth's
     Department of Personnel would be essential in considering
     decisions on these matters.

VI.   Relationship of EQB to other Commonwealth Agencies

           The ex-officio members  of the Board of Governors
     provide an opportunity for coordinating environmental
     policy among the Government agencies chiefly concerned.
     If the Board of Governors addresses broad environmental
     policy and formulates long-term plans for achieving the
     environmental goals of the Commonwealth, the ex-officio
     members could appropriately contribute to such policy
     and planning, and in turn carry it forward in their
     respective departments and agencies.  However, since the
     Board of Governors is burdened with EQB administration,
     implementation, and enforcement matters, this potential
     is largely unrealized.

           At the staff level, coordination of EQB with the
     Planning Board and other governmental agencies has been
     effectively achieved through the environmental impact
     statement requirement of Public Law No. 9.  Similarly,
     the necessary close coordination with PRASA with respect
     to municipal waste treatment facility planning is fairly
     effective.   However, on the central question of financing
     the Commonwealth share of municipal waste treatment
     facilities,  coordinated long-term planning between EQB
     and PRASA is lacking.

           Again, the most significant coordination problem
     involves  EQB and the Department of Natural Resources.
     (See discussion of Legislative Problems and Conflicts above,
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     Since the Environmental Quality Board and the
Department of Natural Resources understand their respective
responsibilities as overlapping in many areas, effective
coordination cannot be achieved until respective authorities
and responsibilities have been delineated.   (See the
recommendation in "III" above.)

Recommendations:

1.   It is recommended that the ex-officio members of
     the Board of Governors use the Board as a vehicle
     for achieving the coordination and implementation
     of broad environmental policy and long-term planning.

2.   It is recommended that the Department of Natural
     Resources and EQB endeavor to achieve close
     continued coordination with each other in accordance
     with a clear delineation of duties and responsibilities
     of the two agencies.

3.   It is also recommended that PRASA and EQB devise
     a planning approach whereby long-term waste
     treatment facility needs and financing are addressed.
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                       FOOTNOTES
I/Puerto Rico Aqueduct and Sewer Authority  (Title 22
   LPRA 141 et seq.)

In summary, this legislation:

1.   established PRASA, a public corporation and autonomous
     government instrumentality—composed of the Governor
     of Puerto Rico,  Secretary of Treasury, Secretary of
     Health, Secretary of Transportation and Public Works,
     and Secretary of Labor, with appropriate corporate
     characteristics;

2.   provides for adequate water and sewer service for
     Puerto Rico;

3.   gives PRASA important functions among which are the
     authority to

     —  borrow money and issue revenue bonds in its
         own name

     —  accept grants of any kind from any source

         fix and collect reasonable rates

         make and enforce rules and regulations consistent
         with the authority of this legislation

4.   transfers all water treatment properties of Puerto Rico
     to the Authority and all government appropriations for
     the upkeep of those properties;

5.   allows PRASA to condemn property for its use, and to
     use other public property as it needs;

6.   authorizes the issuance of revenue bonds for any
     corporate purpose;

7.   protects bankholders by granting them the right to
     receivership  upon the default by the authority of a
     revenue bond payment and further provides bondholders
     the rights of civil action, and mandamus;

8.   exempts the PRASA from Commonwealth or municipal taxes;
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9.   authorizes the Board to  fix and revise reasonable
     rates for water and sewer  services.  PRASA is prohibited
     from rendering free services;

10.  directs the Authority to make, amend, and rescind rules
     and regulations  (having  the force of law) as to the use
     of water and maintenance of attendant facilities.
2/Department of Health  (Title  3 LPRA 171)

In summary, this legislation:

1.   reorganizes the Department of Health and authorizes
     the Secretary of Health to direct matters of health,
     sanitation, and charities;

2.   directs the Secretary of  Health to provide such
     statistical, laboratory,  hospital and all other services
     as may be necessary  for public health control;

3.   authorizes the Secretary  of Health power to prescribe
     rules and regulations to  control disease, protect
     public health, and "guard from contamination all streams
     from which water for drinking or domestic purposes is
     taken";

4.   provides procedure for promulgating regulations;

5.   authorizes representatives of the Department of Health
     to enter private or  public buildings to make investi-
     gations or inspections to promote the health of the
     public;

6.   empowers the Department to remove public health nuisances
     not adequately disposed of by the owner;

7.   empowers sanitation  officials of the Department to make
     arrests of offenders and  provides fines of $5-$100 or
     imprisonment of from 1 to 30 days or both; health
     officers shall enforce these laws and have general
     supervision over public health;

8.   requires municipalities to maintain and repair their
     own public works and stipulates notification and
     enforcement powers and judicial remedies for the Secretary
     of Health to follow  in the event of municipal non-
     compliance ;

9.   includes extensive child  care and social welfare provisions,
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3/Department of Transportation and Public Works  (Title 22
   LPRA 1 et seq.)

In summary, this legislation:

1.   provides overall authority for public works projects
     in Puerto Rico;

2.   generally includes authorization for water treatment
     irrigation, electrification and building projects
     in Puerto Rico;

3.   establishes authority to acquire property, design
     and contract for construction of public buildings;

4.   establishes the Puerto Rican Irrigation Service,
     South Coast; the Isabela Irrigation System; the
     Southwestern Puerto Rico Project;

5.   establishes PRASA  (discussed above);

6.   establishes the Puerto Rico Water Resources Authority
     to develop  and utilize the water and energy resources
     of Puerto Rico  (this authority is organized along
     lines similar to PRASA);

7.   establishes the Puerto Rico Public Buildings Authority
     to set up and manage office facilities for the various
     departments of the Commonwealth government.
4/Department of Agriculture and Commerce Act  (1940)
~~    (Title 3 LPRA 351 as amended by Reorganization
     Plan No. 1 of 1950)

In summary, this legislation:

1.   authorizes the Department of Agriculture to promote
     the agricultural, industrial, and commercial interests
     of Puerto Rico;

2.   authorizes the Secretary of Agriculture to promote
     agricultural industries and handcrafts by working
     with all agricultural organizations in Puerto Rico,
     studying methods of improvement dealing with export
     and import of plants;
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3.    authorizes plant quarantine activities on the Island;

4.    authorizes the Department to regulate, inspect, chemically
     analyze and control fertilizer, cattle feed, insecticides
     and fungicides  (§355(f), §366):

5.   authorizes the  Division of Ornithology and Pisciculture
     to regulate and protect wild birds and fish hatcheries;

6.   provides the Department regulatory control of all public
     and private chemists  in Puerto Rico and closely regulates
     chemical analysis carried on in sugar cane refineries;

7.   directs the Department to inspect and regulate the sale
     of coffee in Puerto Rico;

8.   directs the Department to guard and sustain the forests
     of Puerto Rico;

9.   directs the Department through the Division of Animal
     Industries to control animal-related diseases and pests;

10.  authorizes the Department's Division of Agricultural
     Development to direct the general development of Puerto
     Rican agriculture, including establishment of farm
     bureaus and agricultural cooperatives;

11.  establishes the Division of Agricultural and Industrial
     Economics to assist in planning the agricultural economics
     of Puerto Rico;

12.  authorizes the Secretary of Agriculture to declare
     appropriate plants, etc., a public nuisance.  They then
     must be destroyed  (without public compensation) by the
     owner under penalty of prosecution under the Puerto Rico
     penal code;

13.  empowers the Secretary of Agriculture to adopt any
     rules and regulations which have the force of law to carry
     out the provisions of this legislation.


5/Public Planning and Development (23 LPRA 1 et seq.)

In summary, this legislation:

1.    provides four areas of legislative action:  Public
     Planning;  Economic Development; Economic Stabilization;
     and Navigation and Marine Trade;

2.    is designed to provide for coordinated economic development
     of Puerto Rico;
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3.    establishes a Puerto Rican Planning Board to prepare
     and adopt a Master Plan — a plan of balanced Puerto
     Rican development;

4.    provides that the Master Plan shall take effect
     immediately after approval by the Governor;

5.    authorizes the Planning Board to adopt zoning regulations,
     subdivision regulations, official maps and surveys,
     and to implement the recommendations of the Master Plan;

6.    authorizes the Chairman of the Planning Board to appoint
     the Permit Official who serves as Director of the
     Bureau of Permits;

7.    authorizes the Permit Official to issue the permits
     necessary for the use of lands and buildings;

8.    provides a Board of Appeals on Constructions and
     Subdivisions and provides a mechanism to petition
     judicial review of final decisions of the Planning Board.


6/Organic Act of the Department of Natural Resources
   Public Law No. 23  (Title 3 LPRA 151)

     The Act establishes the Department of Natural Resources
as a department within the executive branch of the Common-
wealth Government.

     The Department is given responsibility to implement,
with respect to the operational phase,the public policy of
the Commonwealth as established by:

     (1) Section 19 of Article VI of the Constitution; and

     (2) the Board on Environmental Quality in accordance
         with Sections 1121 and 1140 of Title 12.

     In carrying out this responsibility, the Department is
directed to establish programs for the use and conservation
of natural resources.  These programs are required to be
implemented within standards established by the Board of
Environmental Quality -

     The Act grants to the Department certain faculties and
duties, including:
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     (1) the authority to regulate the extraction of
         subterranean water from public and private
         lands; and

     (2) the responsibility for conservation of territorial
         waters, submerged lands thereunder, and the
         maritime terrestial zone, and authority to regulate
         their use and exploitation.

     The Act transferred to the Department certain faculties
and duties previously assigned to other agencies, including:

     (1) the powers and functions of the Mining Commission
         and its Executive Secretary;

     (2) the powers and functions of the Secretary of
         Transportation and Public Works conferred by
         Sections 11-124 of Title 28;

     (3) the powers and functions of the Secretary of
         Transportation and Public Works concerning flood
         prevention, conservation of rivers and beaches,
         and extraction of materials from the earth's crust;

     (4) the powers and functions of the Public Service
         Commission concerning the use of public waters
         and the enforcement of the Law of Waters;

     (5) the functions and activities of the Industrial
         Research Department of the Economic Development
         Administration concerning geological and minera-
         logical surveys;

     (6) the powers and functions of the Secretary of
         Agriculture conferred by the "Game Act," the
         "Fisheries Act," and the "Forest Law";

     (7) certain powers and functions of the Secretary
         of Agriculture concerning forest lands and hatcheries,
         and responsibility for the protection of hydro-
         graphical basins and for flood control; and

     (8) the powers and functions of the Board on Environ-
         mental Quality with respect to extraction of
         subterranean waters.

     The Act creates within the Department a "Committee for
Negotiations on Mining Affairs."

     The Act designates the Secretary of the Department as
a member of the Board on Environmental Quality.
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                                              APPENDIX I
    Comments on Memorandum of June 20, 1973, Describing the
        Responsibilities of Agencies Concerned with the
                          Environment
Introduction

     The memorandum was written in an effort to specifically
sort out the responsibilities and activities which should
be undertaken by Division of Natural Resources, Environmental
Quality Board and the Planning Board.  The comments below
will be addressed only to the memorandum1s discussion with
respect to D.N.R. and EQB.

Comments

     1.   Beginning on page 3, the memorandum discusses
those activities presently pursued by EQB.  This section
should include a discussion of the full scope of EQB's
jurisdiction.  The responsibilities of EQB, as established
by Public Law No. 9, embrace the following subjects:

          a.   the quality and purity of the environment
               generally;

          b.   sources adversely affecting the environment;

          c.   control of noises;

          d.   water pollution;

          e.   air pollution; and

          f.   solid waste management.

     2.   On page 10, the memorandum states that basic
scientific research must be the prime responsibility of D.N.R.,
while EQB should conduct supportive research to exercise
its functions.  We cannot agree with this general conclusion.
Each agency should conduct that research necessary to fulfill
its responsibilities, whether it be basic scientific research
or some other form of research.  For example, EQB may find
it necessary to conduct basic research in fulfilling its
mandate to control air pollution.  This research should not
properly be conducted by D.N.R.
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     The focus of each agency should be on the objective of
the activity, not the type of activity conducted.  We
believe it is incorrect to suggest that duplication and
overlap exist because both EQB and D.N.R. will conduct basic
research.  Duplication and overlap will only result if both
agencies are conducting research with the same objective
in mind.  This can be avoided, as the memorandum suggested,
by maintaining continuous communication on research projects.

     3.   Again we cannot agree with the statement on page 11
that inspections generally are an operational activity of
D.N.R. in accordance with the law.  We endorse the memorandum's
conclusion that the agencies continue to carry out inspections
related to the matters over which they have jurisdiction.

     4.   On page 12, the memorandum states that "there are
areas of inter-agency conflict or duplication, which can only
be resolved when amendments to existing legislation are
introduced."

     We do not believe amendments to existing legislation are
necessary, for this purpose.  Conflict and duplication as to
the conduct of specific activities can be avoided administra-
tively if each agency identifies those activities which are
necessary to the achievement of its mission and objectives,
informs and coordinates with other agencies, refines the
memorandum and endeavors to keep communications open and
current.

     5.   Further on page 12, the memorandum suggests that
in the environmental sphere emphasis should be placed on
centralization.  If the implication of this statement is
that change should be made in the present organizational
division of resource management in D.N.R. and environmental
protection in EQB, we disagree.  These functions are
sufficiently independent to require separate agencies to
execute them.  In addition, there is considerable potential
for conflict of interest if the responsibility for protecting
the environment were joined in a single agency with responsi-
bility for development of resources.

     Proper integration and coordination within the environ-
mental sphere can be furnished by the EQB's governing board,
which is charged with responsibility for developing the
broad environmental policy of the Commonwealth.  The composition
of this Board makes it the ideal vehicle for pursuing this
objective.
                         -29-

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                                            APPENDIX II


           AMENDMENTS TO PUBLIC LAW NO. 9
1.    Amendments to Section 1129

     A.   Discussion

            Section 1129 establishes the Board on Environ-
          mental Quality, designates the composition of
          the Board, and sets forth the qualifications
          required and terms of office of those members of
          the Board not otherwise officers of the Commonwealth.
          This section also authorizes the Governor to fill
          vacancies which may occur on the Board, sets the
          level of compensation for members of the Board
          who are not public officers, and designates the
          number of members necessary to constitute a quorum
          and the number necessary to make decisions for
          the Board.

            The amendments recommended below allow an ex-officio
          number of the Board to designate an alternate to
          serve in place of such member.  Alternates, for
          purposes of Board meetings, may exercise the same
          functions as permanent Board members, including the
          right to vote on Board decisions, and will be counted
          when determining the presence of a quorum.

     B.   Amendments

            In Section 1129, paragraph 1, following the second
          sentence, add the following new sentence:  "Ex-officio
          members of the Board may each designate one alternate
          to act in place of such member whenever such ex-
          officio member is unavailable; such alternate member
          shall be designated in writing, and when serving
          in place of such ex-officio member shall have the
          same authority as such ex-officio member."

2.    Amendments to Section 1130

     A.   Discussion

            Section 1130 authorizes the Governor to appoint
          an Executive Director and two Associate Directors
          for four-year terms to be confirmed by the Senate.
          The section specifies that one Associate Director
          shall have responsibility for everything related
          to air and water resources and the other Associate
                          -30-

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     Director everything related to solid waste.  In
     addition to certain administrative provisions,
     Section 1130 directs that in case of disability,
     resignation, severance, or death of the Executive
     Director or Associate Directors, the Board shall
     appoint a substitute until a successor is confirmed
     or the original office-holder resumes his duties.

       The amendments recommended below would:  first,
     change Section 1130 to clarify the role of the
     Executive Director to implement and enforce environ-
     mental protection authorities without the necessity
     of submitting these matters to the Board of Governors.

       Second, the position of Deputy Executive Director
     would be created, and the number of Associate
     Directors increased from two to three or more.
     The function of the Deputy Executive Director would
     be to assist the Executive Director in meeting his
     responsibilities, and to act in his behalf and with
     his authority, whenever directed to do so by the
     Executive Director.  The function of each Associate
     Director is not statutorily prescribed, but would
     be determined by the Executive Director as he deems
     appropriate.  The Deputy Executive Director and
     Associate Directors would not require Senate
     cqnfirmation.

       Third, the provision whereby the Board appoints
     a substitute in case of the disability, resignation,
     severance,  or death of the Executive Director,
     Deputy Executive Director, or an Associate Director
     would be deleted.  This appointment power would
     reside in the Governor.

B.   Amendments

     Section 1130 would be revised to read as follows:

     "§1130  Directors

     "The Governor, on previous consultation with the
      Board,  shall appoint an Executive Director, a
      Deputy Director, and three or more Associate
      Directors  of the Board.  Said persons shall be
      confirmed  by the Senate and be required to meet
      similar qualifications as the three (3) appointed
      members who compose the Board as specified in
      Section 1129 of this title.
                    -31-

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"The Executive Director shall be responsible for the
 implementation and enforcement of environmental
 protection authorities pursuant to law  and consistent
 with the policy established by the Board under this
 Chapter.  Such responsibility shall include, but not
 be limited to:  the establishment of standards and
 regulations, the initiation and disposition of enforce-
 ment actions, the issuance of permits and licenses
 and the organization of the Agency.  Concurrence of
 the Board shall not be necessary with respect to the
 execution of such functions, except that the concurrence
 of a majority of the Board shall be required before
 any regulations proposed by the Executive Director may
 be promulgated.

"The Deputy Director shall assist the Executive Director
 in the execution of his duties as the Executive Director
 may determine, and shall act on behalf of and in place
 of the Executive Director whenever the Executive Director
 is temporarily absent.

"The Associate Directors shall assist in the execution
 of such duties as the Executive Director may determine.

"The Executive Director shall draw an annual salary of
 $21,000.00, the Deputy Director an annual salary of
 $20,000.00, and the Associate Directors, an annual
 salary of $20,000.00.

"The Executive Director may hire such experts and
 employees or contract with such consultants as may be
 necessary to carry out his functions under this title."
                    -32-

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            JUNTA DE CALIDAD AMBIENTAL
                JUNTA DE GOBIERNO

INDICE DE LAS KDJNIONES DE LA JUNTA DE GOBIERNO 1971
APPENDIX III
NUMERO DEI LA
REUNTCN
74-
74- 1 (a)
74- 1 (b)
74- 1
74- 3
74- 4
74- 5
74- B
74- 7
74- 8
74- 9
74-10
74-11
74- 17
74- 13
74- 14
74- 15
74- 16
' F E C H A tEXTRA ' ORDI-
' Dia MPR iORD. ' NARIA
\ i
t Jueves, 17 de enero de 1974 , ,
, Reunion - Sesion Eiecutiva (
1 i i
, Jueves, 24 de enero de 1974 x ,
' i «
, Viernes, 25 de enero de 1974 x
, Miercoles, 30 de enero 1974 ' x
' •-• i '
, Miercoles, 6 de febrero 1974 x
1 i '
.Miercoles, 13 de febrero 1974 x
' . i
, uueves, 14 de febrero 19/4 x
' i '
.Miercoles, 27 de febrero 1974 , x
t f ,i
.. Miercoles . 6 de marzo 1974 x ,
' - T '
.Miercoles, 13 de marzo 1974 x ,
1 •* i '
.Miercoles, 3 de abril 1974 x ,
i . i
.Miercoles, 17 de abril 1974 x ,
' i '
.Mierooles, 1rr>. dp rnavo 1974 x i
' i '
.Miercoles, 29 de mavo 1974. , x
I T
Lunes, 10 de jurao de 1974 x
.Martes, 18 de junio de 1974 ' x ,
, Viernes, 21 de junio de 1974* , x
I
iMartes, 25 de junio 1974 ' x i
CELEBRADA ' HORA PROGRAMADA ' HORA COMENZADA
Si ' No ' '
i • i
1 ' 4:00 P.M. ' 5:00-9:30 P.M.
1 ' ' ' 5:00-9:30 P.M.
y t •
1 ' " ' 1:30-7:00 P.M.
x . , ,
1 ' ' ' 5:10-8:20 P.M.
x . ,
i i ii i
. x , ,
1 ' 4:30 P.M. ' 5:15-8:50 P.M.
X i f |
t t M'°0 D M f 5:07-5:20 P.M.
1 ' " ' 5:00-7:00 P.M.
x . , ,
1 ' " ' 4:45-7:15 P.M.
x , ,
• i ' ' 5:00-7:30 P.M.
x , ,
i i >
' ' ' ' 5:00-6:45 P.M.
X t f _ _ 	 	 f. 	 	 	
1 ' " ' 4:50-8:30 P.M.
X I • 	 1 	
' ' ' ' 4:00-8:00 P.M.
X . -f 	 1 	
i i '
. x < i
i i '
. x ,
1 1 '
t x 1 '
,v i , " ' 4rOO-8:00 P.M.
x j 	 i
                  -33-

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Pag.  #2
NUMERO DE LA
REUNION

74-17

74-18

74-19





' F
' Dia
t
1 Miercoles,
t
1 Miercoles,
i
' Miercoles ,
t
i
i
i
'
E (

31

14

28





: H

de

de

de





A
Mes

Julio de 1974

agpsto de 1974

agpsto de.1974





' Extra
1 OnrliTvi-p-m

i

X







Ordi-
Naria

X



X





CELEBRADA
Si ' No
1 1
x '
i
1 X
1
X '
1
t
1
1 1
1 1
HORA PROGRAMADA ' HORA COMIENZO
i
	 i 	
4:00 P.M. ' 5:30 - 8:45 P.M
i
i
T
4:00 P.M. ' , 5:45 - 7:10 P.M
i
i
,
i
i
                                                          -34-

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                                               SCHEDULES OF CASES SUBMTTnD TO THE BOARD
              CASES
(1)  Sabari Estates, Inc.
(2)  Municipality of Trujillo Alto
        (Solid Waste)
(3)  Hormigonera William Granel

(4)  Caguas Bus Line

(5)  Public Hearing feport
     RE:  Location of the Municipality
          of Aibonito Dump
(6)  Vacia Talega
 TYPE OF ACTION
CONSIDERED AT THE
FOLLOWING MEETING
Order to Do and Cease
and Desist
Order to Show Cause
Order to Cease and Demist

Order to cease and Desist
Resolution
74-1 (a) - 1/24/74
74-1 (b) - 1/25/74
74-2     - 1/30/74
7U_4     _ 2/13/74
74-5     - 2/14/74
74-6
74-7
74-8

74-8



74-8
74-9
74-10
74-16
- 2/27/74
- 3/6/74
- 3/13/74

- 3/13/74



- 3/13/74
  4/3/74
  4/17/74
  6/25/74
                 MEETINGS SCHEDULED
                  AND NCT HELp
REASON:

 (a)  No Quorum:

      74-3 - 2/6/74

      ~Mi ~   ^ I *~ "7 /" '
      /4-O - 4/ f-lt I*

      74_S - 4/3/74

      7H-14- 6/18/74

      7H_15 _ 6/21/74

(b)  President of the Board out of
     Puerto Rice

        7i|_13 _ 6/10/74

 (c)  President of the Board  sick

        74-18 - 8/14/74
                                                      -35-

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                                           SCHEDULES OF CASES SUBMITTED TO THE BOARD
Page No. 2
                     CASES
TYPE OF ACTION
CONSIDERED AT THE
FOLLOWING MEETING
(7)  Puerto Rico Water Resources Authority,

(8)  P.P.G. Industries
Resolution

Resolution
74-11

74-11
- 5/1/74

- 5/1/74
(9)  Municipality of Luquillb
        (Solid Waste)

(10)  David Cabrera, Inc.
(11)  fblinos de Puerto Rico, Inc.

(12) -Maxt-^r Mix, Inc.

(13)  Cafeteros de Puerto Rico, Inc.
Order to Show Cause

Order to Show Cause


Order to Show Cause

Order to Show Cause

Oixier to Show Cause
74-12    - 5/29/74
74-17
74-13

74-19 -

74-19

74-19
- 7/31/74
- bY ^6/74

- 8/28/74

- 8/28/74

- 8/28/74
                                                               -36-

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                                                      REGULATIONS AND OTHER MATTERS SUBMITTED TO THE BOARD
Regulations and Others Matters                                                                    Considered at the  following Meetings

Water Quality Standards Regulation 	  74-1  (a) - 1/21/74
                                                                                                       74-1  (b) - 1/25/74
                                                                                                       74-8     - 3/13/74

Amendments to the Regulation for the
Control of Atmospheric Pollution (December 1973)	74-4     - 2/13/74
                                                                                                       74-5     - 2/14/74
                                                                                                       74-10    - 4/17/74   (Status report)

Amendments to the Article 11,
law Number 9, June 18,- 1970	74-1  (a) - 1/24/74
                                                                                                       74-1  (b) - 1/25/74
                                                                                                       74-6     - 2/27/74
                                                                                                       74-8     - 3/13/74

Costal Zone Law Project	74-S     - 2/27/74
                                                                                                       74-9     _ 4/3/74
                                                                                                       74_10    - 4/17/74
                                                                                                       74-11    - 5/1/74

Annual Report to the Governor (1974)	74-6     - 2/27/74
                                                                                                       74-8     - 3/13/74
                                                                                                       74-9     _ 4/3/74
                                                                                                       74-10    _ 4/17/74
                                                                                                       74_11    _ 5/1/74

Environmental Report 1973	74-6     - 2/27/74
                                                                                                       74-8     - 3/13/74
                                                                                                       74-9     - 4/3/74
                                                                                                       74-10    - 4/17/74
                                                                                                       74-11    - 5/1/74
                                                           -37-

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Page No. 2
                                               REGULATIONS AND OTHER MATTERS SUBMITTED TO THE BOARD
Regulations and others Efetters
Considered at the following meetings
1974- Minute approval

74-1 (a)     -    74
	 74-3,2 - 5/24/74
        74-18 - 8/14/74
        74-19 - 8/28/74
Amendments to Section 6.1 of the
Regulation of the Control of
Atrospheric Pollution 	
    - 74-18 - 8/14/74
      74- 19 - 8/28/74
                                                                 -38-

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                                        EN VIRON/VIEIMTAL QUALITY  BOARD
                                                  ORGANIZATION  CHART
                                                        OFFICE OF THE GOVERNOR
                                                                 Environmental
                                                                 Quality  Board
'--J
H-
                                                                 Office of the
                                                              Executive  Director
                               Office of
                            Legal Advisors
              Office  of
        Scientific Assesment
                    Office of
                  Administration
                                                                          Office of
                                                                        Internal Audit
                                  Office of
                            Education & Orientation
                                        Office  of
                                  Evaluation and Planning
                               Office of
                           Associate  Director
                           for Air and  Water
                                                                          Office  of
                                                                   "Associate  Director for
                                                                    Solid Waste  & Noise
           Division of
          Water Quality
  Division of
Water Resource
   Planning
Division of
Air Quality
    Division of
Solid  Waste Control
 Division of
Noise  Control

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                 Commonwealth of Puerto Rico
          Federal Water Pollution Control Act of 1972
           Construction Grant Allocation P.L. 92-500
                    Status of Funds Available
                     as of November 1, 1974
Fiscal Year 1973

Fiscal Year 1974:L/

Fiscal Year 1975 /
 Allocated

 17,690,000

 26,535,000

 40,832,900

$85,057,900
 Obligated

 17,690,000

  1,105,265



$18,795,265
  Balance
 Available

  -0-

 25,429,735

 40,832,900

$66,262,635
V
  Under the provisions of P.L. 92-500, funds allocated
  must be obligated by the following dates or lost:

           FY 1974 - by June 30, 1975
           FY 1975 - by June 30, 1976
                            Figure 2

                              -40-

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                    COMMONWEALTH OF PUERTO RICO
                    ENVIRONMENTAL QUALITY BOARD

         JOINT RESOLUTION NO. 76 OF 1974 (GENERAL BUDGET)
Program:  DIRECTION AND ADMINISTRATION

   Subprogram:  ADMINISTRATION

      Salaries, regular positions               $    358,050
      Salaries, temporary positions                   12,000
      Per diem to legislators and
       Board members                                   2,500
      Professional and consultative services           6,746
      Honoraria and other compensations                1,000
      Travel expenses                                  7,000
      Other general expenses                         200,514
      Purchase of equipment                            4,000
      Donations, subsidies, adjudications
       and contributions - fellowships                   500
      For service payment to Bureau of
       Transportation                                 10,000
      For payment of debts incurred in
       previous years                                394,635
            Total:  Administration              $    996,945

   Subprogram:  SCIENTIFIC GUIDANCE

      Salaries, regular positions               $    117,070
      Travel expenses                                  5,000
      Other general expenses                          10,063
      Purchase of equipment                            8,084
            Total:  Scientific Guidance         $    140,217

   Subprogram:  PLANNING & EVALUATION

      Salaries, regular positions               $     71,400
      Travel expenses                                    432
      Other general expenses                           5,205
      Purchase of equipment                            1,200
            Total:  Planning & Evaluation       $     78,237

   Subprogram:  EDUCATION & ORIENTATION

      Salaries, regular positions               $     80,134
      Travel expenses                                  3,000
      Other general expenses                          13,391
      Purchase of equipment                            8,609
      Donations, subsidies, adjudications
       and contributions - fellowships                 1,000
            Total:  Education & Orientation     $    106,134
                            Figure 3
                             -41-

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                   COMMONWEALTH OF PUERTO RICO
                   ENVIRONMENTAL QUALITY BOARD
           JOINT RESOLUTION NO. 76 OF 1974 (GENERAL BUDGET)
Program:     WATER AND AIR

   Subprogram;  AIR QUALITY

      Salaries, regular positions               $     82,510
      Salaries, temporary positions                    3,000
      Professional and consultative services          15,000
      Travel expenses                                  2,500
      Other general expenses                          12,345
      Purchase of equipment                          116,266
      Donations, subsidies, adjudications
       and contributions - fellowships                 2,000
            Total;  Air Quality                 $    233,621

   Subprogram:  WATER QUALITY

      Salaries, regular positions               $    176,851
      Professional and consultative services           3,857
      Travel expenses                                  4,150
      Other general expenses                          10,493
      Purchase of equipment                            2,649
      Donations, subsidies, adjudications
       and contributions - fellowships                 2,OOP
            Total:  Water Quality               $    200,000

   Subprogram:  WATER RESOURCE PLANNING

      Salaries, regular positions               $     45,603
      Travel expenses                                  5,000
      Other general expenses                           5,453
      Purchase of equipment                            5,000
      Contracting services with Water Resources
       Council and U.S.G.S.                          227,919
            Total:  Water Resource Planning     $    288,975
            Total:  Water & Air Quality         $    722,596
                          Figure 3 (continued)

                              -42-

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                     Commonwealth of Puerto Rico
                     ENVIRONMENTAL QUALITY BOARD
            JOINT RESOLUTION NO. 76 OF 1974 (GENERAL BUDGET)
Program:     SOLID WASTE AND NOISE

   Subprogram:  SOLID WASTE

      Salaries, regular positions               $    125,033
      Travel expenses                                  5,984
      Other general expenses                           9,129
      Purchase of equipment                            5,231
      Donations, subsidies, adjudications
       and contributions - fellowships               	500
            Total:  Solid Waste                 $    145,877

   Subprogram:  NOISE CONTROL

      Salaries, regular positions               $     31,477
      Professional and consultative
       services                                       12,243
      Travel expenses                                  2,568
      Other general expenses                           3,712
            Total:  Noise Control               $     50,000
            Total:  Solid Waste &
                    Noise Control               $    195,877
                                   Total        $  2,240,006
                           Figure  3  (continued)

                               -43-

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        COMMONWEALTH OF PUERTO  RICO
        ENVIRONMENTAL QUALITY BOARD
BUDGET FOR OPERATIONAL EXPENSES  -  GENERAL FUND
               FISCAL YEAR  1974-75
PROGRAMS
Program: Water
Subprogram:
Subprogram:
Subprogram:
i
>t» Program: Solid
Subprogram:
Subprogram:
ACTUAL
1973-74
and Air
Air Quality
Water Quality
Water Resource Planning

Waste & Noise
Solid Waste
Noise Control
Program: Direction & Administration
Subprogram: Administration
Subprogram: Scientific Guidance
Subprogram: Planning & Evaluation
Subprogram: Integral Improvement of
the Environment
Subprogram: Education & Orientation
TOTAL BUDGET GENERAL FUND
$ 526
187
205
132

119
119
693
579
170
114
$1,510
,547
,840
,764
,943

,500
,500
,896
,373
,243
,523
,186
REQUESTED
1974-75
$1,267,
405,
423,
439,

693,
392,
300,
2,426,
1,728,
338,
136,
223,
$4,387,
244
000
000
244

320
920
400
965
965
500
500
000
529
ACTUAL
1974-75
$ 722,
233,
200,
288,

195,
145,
50,
1,321,
996,
140,
78,
106,
$2,240,
596
621
000
975

877
877
000
533
945
217
237
134
006
                 Figure 4

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           Commonwealth of Puerto Rico
           Environmental Quality Board
               EPA Program Grants
               Fiscal Year 1974-75
Grant No.                Media               Amount

A 002 078 750            Air                 350,000

I 002 072 075            Water               651,056

L 002 095 010            Solid Waste          45,000
           Total EPA Program Grants       $1,046,056
                      Figure 5

                       -45-

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                     Commonwealth of Puerto Rico
                     Environmental Quality Board
                       Staffing Levels as of
                         November 1,  1974
 Type of
Appointment
Authorized
by Budget
FY 74-75
On Board
           Vacancy
Vacancies    Rate
Exempt

Regular Civil Service

Without Opposition (SO)
   3

 157

  15

 175
   3

 117

  13

 133
    40

     2

    42
25%

13%
        Temporary Staffing
          Provisional -
          not to exceed
          6 months
  13
  13
          Contracts - not
          to exceed one
          year
  30
  30
                              Figure  6

                                -46-

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