ACCOMPLISHMENTS & GOALS
         FY -1980
           *< PRO**0
      PLANNING AND
 MANAGEMENT DIVISION

           REGION 2
 U.S. ENVIRONMENTAL PROTECTION AGENCY
        26 FEDERAL PLAZA
       NEW YORK, N.Y. 10278

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                   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
   DATE   December 29, 1980        REGION II

 SUBJECT   FY-80 Accomplishments and FY-81 Goals
   FROM   Herbert Barracky
         Assistant Regiaifai Administrator for Planning and  Management

     TO   Charles S. Warren
         Regional Administrator


         Chuck, this is the first opportunity I have had to prepare  for
         you my annual review of the Planning & Management  Division's  (P&M)
         accomplishments.  I believe this report provides you with a
         perspective on the initiatives the Division will be undertaking
         in FY-81 as well as a recap of the highlights of our FY-80
         activity.

         Several key areas have characterized P&M's most recent accom-
         plishments and to a large degree define the efforts we will
         be involved in during the current fiscal year.

         Protection of the Public from Hazardous Materials

         The Resource Conservation and Recovery Act (RCRA) generated
         significant activity in the Regional Office and P&M has been
         involved as a key participant on a number of fronts:

              0  Grants Administration Branch (GRA) has become the
                 Region's point of responsibility and expertise on
                 financial assurance requirements to be associated
                 with the closure and post closure activity as
                 hazardous waste disposal sites.

              0  GRA was also instrumental in the development of
                 cooperative arrangements under RCRA Subtitle C
                 with New York, New Jersey and Puerto Rico.

              0  The Permits Administration and Information Systems
                 Branches worked extremely closely with the contractor's
                 staff in processing over 9,000 notifications from
                 handlers of hazardous material, identifying 4,000
                 potential illegal non-notifiers and issuing warning
                 letters and 20 Notices of Violation and responding  to
                 more than 2,000 telephone inquiries from industry   on
                 applicability of RCRA regulations.
EPA Form 1320-6 (Rev. 3-76)

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                              -2-
With the expected and ultimately passed  "Superfund"  legislation
P&M Division had begun working  in  several  areas which will  be
important-to our Region's  success  in  implementing a  Superfund
program.

     0  Planning &  Evaluation and  Personnel  and Organization
        began working with  the  Region's  Superfund Coordinator
        to identify resource and organizational needs,  both
        short and longer term.

     0  The Facilities and  Administrative  Management  (FAM)
        Branch  in conjunction with  the Surveillance  and
        Analysis Division  prepared  an extensive Repair  and
        Improvement Budget  Request  for FY-82 which included
        a variety of essential  and  costly  laboratory
        improvements:

        - toxic chemical handling  and preparation lab-
          oratory
        - GC/MS Laboratory  Enlargement
        - biotoxicity laboratory
        - tissue culture laboratory
        - Clean Room for Metals analysis
        - Clean Room for Sample Preparation

These improvements  will be  needed  to  insure  the safety  of EPA
staff and the public as well as the integrity of EPA sample
collection and  analysis.

     0  FAM has also focused on expanding  in house contracting
        capabilities with  the expectation  of an increased role
        in conjunction with Superfund remedial actions.  We
        have already been  approached  by  Contracts Management
        Division in Headquarters regarding the development
        of a pilot  delegation to the  Region  of contracting
        authority associated with  Superfund.

Continued Implementation of Personnel Management Reforms

     0  In September and early  October 1980  the Region
        conducted its first performance  appraisal against
        the performance standards  which  were developed  on
        a pilot basis in 1979 and  refined  in FY-80.
        Personnel and Organization  (PO)  took the lead
        role in assuring that these appraisals were done
        in accordance with  Headquarters  and  Office of
        Personnel Management (0PM)  guidelines.

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                             -3-
     0  Preparation for our first Merit Pay distribution
        was a significant workload for PO, Financial Manage-
        ment and Information Systems.  With limited and
        untested guidance from Headquarters and 0PM we
        managed to achieve an equitable incentive pay
        distribution for designated GS 13 through 15 staff.

     0  PO also received delegation of new recruitment and
        personnel authorities, such as, examining authority
        for GS-9 through 15 positions formerly filled under
        Mid and Senior Level announcements; direct hire
        authority for permanent part time positions of
        environmental protection specialist, life scientist
        and environmental scientist; temporary appointments
        not to exceed one year for GS-1 through GS-7, et al.

     0  PO coordinated the Region's participation, in a
        long term study of the effectiveness of the Civil
        Service Reform Act conducted by the Office of Person-
        nel Management's consultants from Case Western Reserve
        University.

Improved Resources Management

Several efforts were undertaken in FY-80 which will continue
throughout or come to fruition in FY-81 which were designed
to achieve resource efficiencies either through cost effective
use of contractors or improved fund controls.

     0  Facilities & Administrative Management Branch
        staff reductions and functional realignments
        were effected through the auspices of the
        Javits Amendment to the Wagner-O'Day Act for
        on-site performance of a variety of administrative
        services including mail processing, motor pool
        maintainence, duplicating, et al.

     0  Grants Administration and Financial Management
        initiated a program grant review to develop
        internal monitoring and reporting procedures to
        assure the timely receipt and processing of
        financial status reports (FSRs) from grantees,
        final grant audits and settlement of cash advances;
        past due FSRs were solicited and deobligation actions
        taken.  This assisted in reducing the number of out-
        standing audits for resolution and enabled us to take
        advantage of available balances for future obligations.

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                             -4-
     0  With the acquisition and installation of the Region's
        new PDP-11/70 minicomputer the Financial Management and
        Information Systems Branches are collaborating on design
        and programming for a new direct data entry accounting
        and financial control systems.  These systems will
        allow FIN to continue to achieve its outstanding record
        of accuracy and control in Regional accounting in spite
        of substantially increasing workload without additional
        staff.  These systems improvements provide particularly
        critical capability in terms of monitoring and controlling
        decreasing budget allocations in order to assure top
        management timely and accurate data on which to base
        decisions on funding priorities.

Streamlining Regulatory Actions

Several P&M branches were heavily involved in the Region's
efforts at permit consolidation.  Program and Toxic Integration,
Information Systems and Permits Administration worked closely
with Regional program and state counterparts on initiatives
to carry out the objectives of EPA's permit consolidation
regulations.  A final report will be issued during FY-81.

The Permits Administration Branch has worked as the Region's
focal point for coordination and review of industry inquiries
inquiries and application of EPA's Bubble Policy designed to
enhance the economic feasibility of achieving required air
emission controls.  Information sessions for states and
industry were held, and seven bubble application have been
coordinated and approved.

Assessing our Regulatory Effectiveness

     0  During FY-80 the Regional Management Analytic
        Center initiated several major projects including
        an assessment of the Role of Ambient Monitoring
        in Regional Decision Making.  This project defines
        where and why ambient monitoring data are not
        systematically used in making program decisions,
        examines the need for stronger ambient monitoring
        and data management in Region II and recommends
        mechanisms for factoring ambient data into decision
        making.   Analyses for this project were completed in
        FY-80 and a draft report will be issued shortly.
        An action point which has already emerged from the
        project is preparation of an environmental status
        report for each state which will be a foundation
        for the development of the State/EPA Agreements in
        FY-82.

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                            -5-
        In addition, the Planning and Evaluation Branch
        coordinated the Region's data to a National Environ-
        mental Profile designed to focus Agency and public
        attention on the evaluation of environmental improve-
        ment as a primary indicator of program success.  A
        Region specific profile is now under development.
As you have probably noted, our accomplishments covered all areas
of responsibility of the Planning and Management Division and
required close cooperation among P&M branches as well as with our
program divisions.  I am particularly pleased by this.  It continues
to reaffirm for me that the responsibilities of this Division are
undertaken with managerial and environmental goals in tandem.
I offer this report as the product of our FY-80 efforts and an
indicator of our direction in FY-81 and will be glad to discuss
any aspect of it with you.

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                      TABLE OF CONTENTS



                                                         PAGES

PLANING AND MANAGEMENT DIVISION

    Organization Chart	1

      Director:  Herbert Barrack
      Deputy Director:  Kathleen Callahan

Program and Toxic  Integration Branch
Regional Management Analytic Center	2 - 15

      Chief:  Kevin Bricke

Personnel and Organization Branch	16 - 26

      Chief:  Eugene  Viti

Information Systems Branch	27 - 38

      Chief:  John Sweeney

Planning and Evaluation Branch	39 - 47

      Chief:  Stephen Luftig

Permits Administration Branch	48 - 55

      Chief:  Richard Baker

Grants Administration Branch	56 - 63

      Chief:  Helen Beggun

Facilities and Administrative Management Branch	64 - 75

      Chief:  Maureen Sinicki

Financial Management Branch	76 - 88

      Chief:  Ronald Gherardi

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PLANNING AND MANAGEMENT DIVISION
               DIRECTOR




            DEPUTY DIRECTOR

PROGRAM
AND TOXIC
INTEGRATION
BRANCH

GRANTS
ADMINISTRATION
BRANCH






PLANNING AND
EVALUATION
BRANCH

PERMITS
ADMINISTRATION
BRANCH


PERSONNEL AND
ORGANIZATION
BRANCH

INFORMATION
SYSTEMS
BRANCH






FINANCIAL
MANAGEMENT
BRANCH

FACILITIES AND
ADMINISTRATIVE
MANAGEMENT
BRANCH

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PROGRAM AND TOXIC INTEGRATION BRANCH
REGIONAL MANAGEMENT ANALYTIC CENTER

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                             -2-
The Program and Toxic Integration Branch  (PTIB) was formed in January
1979 with the objective of developing the Region's analytical
skills, strengthening program grants management, and insuring
program integration across all divisions.  The "Region II
Management Analytic Center"  (RMAC)  is a major part of PTIB,
serving as the central source of advice and counsel on emerging
policy issues.

During FY-80 PTIB focused its efforts on:

     0  The development office analytic projects designed to
        improve the Region's management of environmental
        programs;
     °  The development of State/EPA Agreements in each state
        designed to serve as useful program integration tools;
     0  The improved coordination of EPA program grants;
     0  The integration of the region's toxics programs;
     0  The management of TSCA cooperative agreements;
     °  The provision of assistance to industry inimplementing
        the Toxic Substances Control Act;
     0  The expansion of the regional role in the implementation
        of TSCA;
     0  The provision of timely and accurate health effects
        information;
     0  The continuation of  the "People and Toxics" program in
        New York and New Jersey; and
     0  The continued efficient management of correspondence
        through the Regional Administrator's office.

The FY-80 accomplishments and FY-81 goals in each of these areas
are summarized below.

ANALYTIC PROJECTS

Regional Administrators have traditionally spent most of their
time dealing with the "political bombs" which they have found
each day in their in-baskets.  In an effort to allow them to
become more active than reactive, the Agency has taken a number
of management initiatives, including the creation of analytic
centers in the regions.   The job of each of these analytic
centers is to carry out a planned agenda of projects to meet the
analytic needs of the Regional Administrator as he attempts to
foster increasing levels of environmental protection without
placing an excessive burden on the economy.  In FY-80 the RMAC
pursued a number of significant projects:

     0   Role of Ambient Monitoring  in Regional Decision Making -
        This project identifies the reasons why ambient monitoring

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                      -3-


data are not now systematically used in making program
decisions, examines the  need  for stronger ambient moni-
toring and data management  in Region II, and recommends
mechanisms for factoring ambient data  into decision
making '.  All analyses were  completed in FY-80; a draft
report will be issued in the  second quarter of FY-81.

Permits Consolidation -  This  project recommends permit ad-
ministration andinformation  management initiatives at both
the federal and state levels  designed  to carry out the ob-
jectives of EPA's permit consolidation regulations.  Sub-
committee reports were completed in FY-80; a final report
will be issued in FY-81.

Water Quality Management Needs Assessment - This project
provides a synthesis of  the Water Quality Management Needs
Assessment responses of  the state and  interstate agencies
in Region II and a statistical summary of the water quality
management program needs over the next five years.  All
analyses were completed  in  FY-80; a final report providing
insights into state priorities will be prepared early in
the third quarter of FY-81.   The report is intended to be
of use to the Regional Administrator and the Water Division
Director as they carry out  their program overview responsi-
bilities.

Section 105 Grants Calendar - Summarizes the Region II air
program grant process, delineating the sequence of events,
responsible parties and  time-frames involved in the award
o~f105 grants and the tracking of 105  grantees' accomplish-
ments.  All analyses have been completed.  The calendar
will be used as a mechanism for synchronizing the air grants
process with the State/EPA  Agreements  process, and will
appear as a component of an FY-81 RMAC project on upgrading
the SEA process in Region II.  Instrumental in developing
this project was a Presidential Management Intern on a
rotational assignment to Region II for several months from
EPA Headquarters.

Reorganization of the Economic Dislocation Early Warning
System and the Economic  Assistance Program (EAP) in
Region II - This project establishes a formal mechanism
forachieving the program goals of 1)  permitting continuous
monitoring of the economic  impact of environmental regulation
on industry to allow for improved policy and procedures

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                              -4-
        guidance, and 2) providing timely input of information
        into the EAP of EPA, as well as other federal and
        state aid programs.  The project establishes a formal
        network of information contacts having regular inter-
        action with potentially threatened business enterprises.

STATE/EPA AGREEMENTS

State/EPA Agreements (SEAs) are intended to be management tools
in which the Regional Administrator and a state environmental
commissioner agree on how best to deploy limited available re-
sources to solve a state's environmental problems.  The SEA
process is relatively new and evolving; although SEA's in Region
II have generated many program integration benefits, they are
additional potential benefits to explore.

Overall responsibility for coordinating the SEA process in
Region II rests with the Program and Toxic Integration Branch;
lead responsibility for negotiating the FY-81 Agreements was
divided by state, with PTIB taking the lead in New York.

     0  New York - On October 31, 1979 the Regional Administrator
        and the Commissioner of the Department of Environmental
        Conservation signed the FY-80 SEA for New York.  Shortly
        thereafter, work began on the development of the FY-81
        Agreement.  In FY-80 the major advance was the incorpo-
        ration of the State's Continuous Executive Program Plan
        as the one-year work plan in the Agreement; the major
        advance for FY-81 was the development of a separate air
        SEA to complement the water SEA.As the fiscal year drew
        to a close, both the air and water Agreements were in the
        final stages of negotiation, the signing of both Agreements
        is expected by January of 1981.

     0  New Jersey - The FY-81 SEA for New Jersey marks the first
        update of the original water SEA developed for FY-80;
        signing is expected by January of 1981.

     0  The Caribbean - The FY-81 SEA's for both Puerto Rico and
        the Virgin Islands have already been signed.  All involved
        agree that improved management of the process has resulted
        from EPA's assignment of lead negotiating responsibility
        to personnellocatedin the Caribbean Field Office.

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                             -5-


PROGRAM GRANTS

As project officer^ on four states and  five  local Section  105
air pollution control grants, and four  state and one  interstate
Section 106 water pollution control grants, PTIB recommended
the award of fourteen FY-80 program grants  as well as a number
of supplemental grants.  Once the awards were made, PTIB  coor-
dinated the tracking of program accomplishments, conducting
formal mid-year reviews of all  state 106 grants.

As the fiscal year proceeded, PTIB worked with  state, interstate
and local agencies to assist them in developing approvable FY-81
work plans and work plan applications;  one  major focus was on
insuring the development o'f approvable  106  work plans as  an
integral part of the State/EPA  Agreements.  As  a result of this
effort, we are in a relatively  good position to award the FY-81
program grants.

As the fiscal year drew to a close, a  major grants management
issue arose in New York State:  the state requested that  37 per-
cent in indirect costs be included in  its program grants  for the
firsttime.PTIB coordinated a regional review of the program-
matic impacts of including indirect costs in the grants,  briefed
the Regional Administrator, and prepared a  letter to  DEC  Commis-
sioner Flacke.  The letter stated the  Regional  Administrator's
position that state funding of  environmental programs should not
decline and that state funds freed up  by the application  of
federal funds to indirect costs should  be reprogrammed within DEC
for direct support of environmental programs.   The ability of
PTIB to produce a timely, high  quality  analysis on an issue
affecting all environmental programs clearly demonstrated the
efficacy of having a "program integration"  capability in  the
Planning and Management Division.

TSCA SECTION 28 COOPERATIVE AGREEMENTS

There are three rounds of TSCA  Cooperative  Agreements:

     0  Round 1 consisted of grants totaling $1.7 million
        which were awarded in FY-79.

     0  Round 2 consisted of grants totaling $1.4 million
        which were awarded in FY-80.

     0  Round 3 consists of $1.25 million available for
        grants which will be awarded in FY-81.

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                             -6-


Region II has received 58% of the total national allotments
from the first two rounds.  In preparation for the third round
of funding, PTIB's assistance was requested by N.Y. and P.R.
in drafting their proposals.  In both situations our advice was
to break single, overly ambitious projects into several smaller
projects having improved chances of funding.

Active Projects

New Jersey

     0  .The Toxic Substances Investigation and Inspection Unit
         (1979-82)
         For $281,563  in federal funds, N.J. is identifying and
         locating toxics problems and investigating the health
         effects associated with these problems.  The project
         is progressing relatively close to schedule.

     0   Broad Spectrum Analysis of Volatile Organics in Air (1979-82)
         For $171,384  in federal funds, N.J. proposed to expand
         a small volatile organics in air monitoring program.
         After the TSCA grant was awarded New Jersey, DEC
         proposed to modify the means for implementing this
         proposal to allow for the purchase of a mobile monitoring
         unit equipped with a GC/MS.  An advantage to this approach
         is the continuing capability provided to the State.  EPA
         has approved  this modification.

     0   Movement, Distribution & Uptake of In-Place Mercury (1980-82)
         For $69,317 in federal funds, N.J. proposes to study the
         environmental movement and distribution of mercury as well
         as clean-up methods.  The work plan has been approved.

     0   Emissions Monitoring for Selected Toxic Substances (1981-83)
         For $205,679  in federal funds, N.J. will establish a program
         to monitor emissions and effluents to determine the effec-
         tiveness of its programs.  The work plan has been approved.

     0   Assessment of Ecological Effects of Contaminants in the
         Waters of New Jersey  (1980-83)
         For $226,867  in fedeal funds, N.J. will conduct intensive
         follow-up analyses in areas identified as contaminated in
         a well survey.  The work plan has been approved.

     0   Toxic Substances Information Resource Center (1980-82)
         For $109,108  in federal funds,N.J.will set up a data
         base of their own library materials.  The work plan has
        been approved.

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                               -7-
        Field Applications of In-Vitro Mutagenesis (1981-83)
        For $183,082 in federal funds, N.J. proposes to conduct
        an experiment to test the effectiveness of the Ames
        bioassay as a field instrument.  The work plan has
        been approved.
New York  (1979-82)
     0  For $348,000 in federal funds, N.Y. has been evaluating
        simple techniques for evaluating mutagenic effects and
        determining the presence of total organic halogens.
        They are also developing procedures for locating past
        and current sources of toxic substances contamination of
        the environment in two counties; one highly industrialized
        and one rural.

Puerto Rico  (1979-83)

     0  For $258,394 in federal funds, P.R. is developing and
        implementing a toxics integration strategy which will
        include; inventory development, monitoring, regulatory
        program development, enforcement and public participation.

PTIB staff conduct periodic reviews of all the cooperative agree-
ments.

INDUSTRY ASSISTANCE

During this past year the Program and Toxic Integration Branch
has received over 500 calls from private industry, concerned
citizens and other government agencies requesting information on
TSCA and toxic substances problems.One of the most frequent
concerns of private citizens has been the possible carcinogenic
effects associated with the use of certain photocoyping machines
(IBM, Xerox and AB Dick).  The submission of this testing informa-
tion was required under section 8e of TSCA.

PTIB staff have also had numerous personal meetings with repre-
sentatives of industry, particularly importing firms, concerned
with regulations under TSCA.  These same individuals have often
returnedfor assistancein reporting for the TSCA inventory and
Premanufacturing Notifications.  In April 1980, PTIB sponsored a
seminar designed to give representatives of industry an opportunity
to question key headquarters' representatives from the Office of
Pesticides and Toxic Substances on issues important to the future
of their businesses and to provide them with an update on proposed
and existing regulations.

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                           -8-
OTHER TSCA-RELATED ACTIVITIES

PTIB's two most clearly defined TSCA related functions are
industry assistance and the management of TSCA Cooperative
Agreements.  However, beyond these two functions the potential
exists to creatively develop an expanded regional role in the
implementation of TSCA.  For example, PTIB has encouraged
increased usage of the TSCA inventory of chemicals in commerce:

     0  The Toxic Substances Section met with representatives
        from U.S. Customs several times over the past year.
        They were particularly interestedTn the purpose and
        authorities of TSCA, how the inventory was gathered,
        and what information they could use in their agency.
        We will probably be even more involved with Customs
        as a result of the December 1, 1980 proposed regula-
        tions for implementing TSCA's authority in dealing
        with imports.  Customs will be responsible for
        enforcing the TSCA regulations pertaining to the
        importing of chemicals and will require guidance on
        the TSCA regulations pertaining to the importing of
        chemicals and will require guidance on the TSCA
        Inventory and the regulations.

     0  OSHA is using the inventory to schedule inspections
        of facilities which may be in violation of their
        carcinogens regulations.

     0  The interfaces which the inventory should have with
        other~EPA programs have been explainedto the various
        divisions within our region for possible use in their
        programs (e.g. , it has been used by the Solid Waste
        Branch to locate potential non-filers under RCRA).

     0  Information on facilities controlling chemicals listed
        in the inventory has been incorporated into the FINDS
        data system.

HEALTH EFFECTS

PTIB's primary health effects function during FY-80 was to provide
timely and accurate responses to requests for health effects in-
formation from the Water, Air, Enforcement and Surveillance and
Analysis Divisions and from the Office of External Programs.
For example:

     0  The Enforcement Division required health effects
        information on various organic chemicals and heavy
        metals to substantiate their claim of imminent and

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        substantial endangerment in a law suit filed against
        the owner of the LiPari Landfill.

     0  In a similar situation at Bridgeport Rental and Oil
        Service, contaminants leaching from a waste oil lagoon
        were found in the neighborhood's water system.  Health
        effects information was requested for use in pending
        litigation.

Furthermore, there has been a growing awareness and concern by
private citizens of the dangers of toxic substances in the air,
in drinking water, in home insulation and in almost every aspect
of our highly industrialized society-  As a result, there has been
a growing number of inquiries concerning the health effects of
contaminants in food, water, and air, in addition to finished
commercial and consumer products.  The Toxic Substances Section
(TSS) of PTIB has been handling these requests for information
from private citizens as well as from local governments and
private firms which must respond to inquiries or conform to new
regulations.

PTIB has acquired access to the Lockheed Dialog System which has
substantially increased our health effects data base and has
allowed us to provide a more thorough and rapid response to health
effects inquiries.

PEOPLE AND TOXICS PROGRAM

The second phase of the "People and Toxics" program in Region II
began in March 1980 after a careful evaluation of the progress
made during FY-79.

New Jersey

FY-80 grants were awarded as follows:

     0  Association of New Jersey Environmental Commissions -
        ($37,000) -- Continued coordination and support of
        task forces in Bergen, Hudson, Middlesex and Morris
        Counties, plus regional task forces along the coast
        (Monmouth, Ocean and Atlantic Counties), and in the
        rural part of the State (Hunterdon, Warren and Sussex
        Counties).  PTIB guided these task forces in expanding
        on their earlier work to include actual demonstration
        of outreach and involvement strategies.

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                             -10-
     0  Rutgers Journalism Resources Institute - ($7,900) —
        Prepared and conducted workshops in New York and
        New Jersey on media/information skills, featuring
        participants froin the People and Toxics program, print
        and broadcast media, and State and Federal government.

New York

The following organizations were awarded grants to follow through
on the work started in the first year:

     0  Center for the Hudson River Valley, Inc. (now Scenic
        Hudson) -  ($38,000) — Provided financial support for
        the continuation of the People and Toxics program in
        New York through subcontracts to 15 environmental and
        public interest organizations in New York for a variety
        of projects.  These groups represent over 500,000 New York
        citizens.  In addition, CHRV conducted a study of clearing-
        house alternatives for toxics information, prepared four
        articles on toxics issues in the Hudson Valley for local
        newspapers and managed the Mid-Hudson Toxics Task Force.

     0  Health Systems Agency of New York City - ($2,000) —
        Completed  a final draft of a toxics guide for health care
        practitioners; had the pamphlet designed and typeset as
        camera-ready copy.  The guide has now been printed and
        distributed to 96,000 health care professionals in the
        New York metropolitan area.  A second printing is now
        under consideration.

Overall, the "People and Toxics" program in Region II has been a
success.  With relatively small amounts of seed money, the region
has developed a constituency for toxics control programs; the
challenge will be  to ensure the continuation of this constituency
in the absence of  continued TSCA funding.

TOXICS INTEGRATION

     0  PTIB's primary toxics integration accomplishment during
        FY-80 was  the refinement of toxics chapters in the New York,
        New Jersey, and Puerto Rico SEAs.
     /
EXECUTIVE CORRESPONDENCE

     0  During FY-79, PTIB was charged with the responsibility
        for managing the flow of correspondence through the
        Regional Administrator's office.  This reassignment

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                             -11-
        resulted in a significant improvement  in  the  Region  II
        record of responses to EPA Administrator  correspondence
        ("AX's"); this'record of improvement has  been  continued
        in FY-80.

FY-81 GOALS AND OBJECTIVES

Analytic Projects

     0  During FY-81, the Region II Management Analytic  Center
        will issue final reports on the five analytic  projects
        developedin FY-80:

            The Role of Ambient Monitoring  in  Regional Decision-
            Making ,
         -  Permits Consolidation,
            Water Quality Management Needs  Assessment,
            Section 105 Grants Calendar (through  SEA  Upgrading
            Project)
            Reorganization of the EDEWS/EAP Systems in Region II.

     0  Two additional major analytic projects have been initiated
        and will be completed in FY-81:

         -  Upgrading the Region II State/EPA Agreement  Process
            and
         -  Developing a Regional Integrated Toxcics  Strategy.

     0  During the second quarter of FY-81  the RMAC will work with
        the Division Directors, the Deputy  Regional Administrator,
        and the Regional Administrator to develop a planned  agenda
        of additional analytic projects which will be  undertaken
        during.the remainder of FY-81.  Two specific proposals will
        be presented for top management review;

            Expediting Electric Utility Coal Conversions; and
         -  The Trading of Rights to Discharge Water  PoTlutants.

        Suggestions will be solicited from  top management for ad-
        ditional projects which meet their  analytic needs.

     0  In consultation with SEA media managers,  the  Program and
        Toxic Integration Branch has identified a number of  improve-
        ments which can make the Region II  SEA process more  responsive
        to State and EPA needs:

        Key SEA objectives:

         -  The need for clear environmental problem  focus;
            The need for early involvement  of the Regional"

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                              -.12-
            Administrator and the State Commissioners as
            decision makers;
            The need for a truly bi-lateral Agreement in which
            EPA makes commitments to the same extent that the
            State does;
            The need for a comprehensive Agreement covering all
            environmental programs;
            The need for a less cumbersome, more workable document.

In a major effort to overcome these deficiencies and to allow
SEAs to reach their full potential as management tools, the Regional
Management Analytic Center is undertaking an analytic effort aimed
at recommending improvements in the SEA process and format.  This
effort will involve a high level of consultation with the states,
with SEA media and program managers and with the public, and will
result in:

     0  the preparation of state-by-state environmental assessments
        which serve as the bases for the Reg ional Administrator and
        the State Commissioner to agree on environmental priorities
        at the beginning of the SEA process; and

     0  the development of state specific recommended improvements
        in SEA format and in the process through whichtheSEA1s
        are developed.

Subsequent to the development of SEA format and process recommen-
dations, PTIB will coordinate the development of FY-82 SEAs
striving to ensure that the RMAC study recommendations are imple-
mented .

Program Grants

     0  Award nine CAA Section 105 and five CWA Section 106
        program grants.
     0  Continue to seek a satisfactory resolution of the DEC
        indirect cost issue.
     0  develop expertise in state planning and management
        processes to serve as the basis for recommendations on
        integrating state and EPA planning and management
        processes.
     0  Insure that FY-82 SEAs include the work plans for all
        105 and 106 grants.
     0  Conduct SEA mid-year reviews covering all environmental
        programs.

Toxics Integration

The primary toxics integration goals during FY-81 will be the
development of national and regional integrated toxics strategies.

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                            -13-


On the regional level PTIB will work closely with  EPA's program
managers to ensure that toxics issues are adequately addressed
in each of the FY-82 SEAs.

     0  Each SEA will begin with an environmental  assessment;
        these assessments will serve as the basis  for summa-
        rizing the nature and extent of the toxics problem  in
        Region II.

     0  The five year strategies and one year work plans  in the
        SEAs will summarize how EPA and the state  currently
        use available programs and authorities to  deal with
        the toxics problem in the region; gaps and overlaps in
        the overall toxics program, which are identified  as the
        strategies and work plans are constructed, will serve
        as targets of opportunity for improved toxics program
        integration.

As the various components of the Region's FY-82 SEAs are  developed,
PTIB staff will draft the analogous components of  a "Regional Inte-
grated Toxics Strategy."

On the national level, Headquarters intends to establish  a number
of working groups to provide input into the development of a national
integrated toxics strategy; PTIB has indicated its desire to parti-
cipate on at least one of these working groups.  It is anticipated
that unlike the regional strategy, the national strategy  will be
developed chemical-by-chemical for approximately 20 high  priority
chemicals.  Through active participation in the development of a
national integrated toxics strategy PTIB expects to;

     0  Ensure that Region II influences the development  of
        national policy; and
     0  Ensure that the Regional Integrated Toxics Strategy
        is compatible with national policy-

TSCA Section 28 Cooperative Agreements

     0  PTIB will continue to monitor grantee performance and
        will take corrective actions as necessary to ensure
        that products are generated which contribute to the
        Regional toxics control effort.

     0  PTIB staff will assist any state receiving an award in
        the third round in formulating an approvable work plan.

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                                 -14-
        Th e Puerto Rico integrated toxics strategy will provide
        key inputs to the regional strategy such as an environmental
        assesment of the toxics problem and program strategies for
        each medium.
Industry Assistance
     0  Continue to provide timely and accurate responses to
        inquiries from industry on TSCA implementation.

     0  Actively seek to improve the lines of communication
        between government and industry by sponsoring useful
        seminars.

Health Effects

During FY-81 PTIB plans:

     0  to assess the total regional (federal, state, local,
        private) health effects capabilities in the Region,
        recommending implementable steps to improve existing
        capabilities in support of EPA programs.

     0  to continue the efforts to develop a system to obtain
        the expert health effects testimony required to support
        EPA enforcement actions in a timely manner.

     0  to provide accurate and timely responses to requests for
        health effects information.

     0  to acquire access capability to the NLM Medlar data system.

In addition to familiarizing ourselves with our own newly acquired
computer services, PTIB will assist state and local government
representatives to understand the capabilities of these systems.
For example, orientation seminars on Chemical Information Resources
have already been held.  These sessions, conducted in the Regional
Office on November 5 and 6, were led by representatives of KOBA
Associates, Inc., and were sponsored by EPA-HQ.  As part of a contract
managed by OPTS, KOBA scheduled sessions in 25 cities (including
Albany where as a result of enthusiastic support, an additional
session was held).  Through the combined efforts of KOBA, OPTS and
Region II-TSS (which coordinated and managed the logistics for
New York) our sessions were informative, interesting and well-attended

People and Toxics

     0  During FY-81, PTIB will isue a final report on the
        "People and Toxics" program; this report will describe
        the components of the program worthy of continuation

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                                -15-
        and will describe a viable strategy for ensuring the
        continuation of those components.

Other TSCA Related Activity

     0  By the end of the second quarter of FY-81, PTIB will
        complete an analysis comparing/contrasting EPA head-
        quarters and EPA Region II roles in the implementation
        of TSCA.  This analysis will identify targets of oppor-
        tunity for increased regional use of TSCA programs and
        authorities to solve the region's toxics problems.

Executive Correspondence

     0  Develop and distribute formal regional guidance
        on the handling of executive correspondence.

     0  Develop a system for using executive correspondence
        as a basis for the development of the agenda of analytic
        projects for the Region II RMAC.

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PERSONNEL AND  ORGANIZATION BRANCH

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                              -16-
During FY-80, the Personnel and Organization Branch  (PO)
continued to stress the improvement and expansion of its
services in the areas of position management, management
advisory services, internal equal employment opportunity,
training and employee relations.  A major emphasis in the
Branch's activities last year was the establishment of the
new Performance Management System and the transition to
Merit Pay.  Specific activities and accomplishments of the
Branch for FY-80 are discussed below.

CROSS-CUTTING BRANCH INITIATIVES

The following activities involved several Branch functions
and required an exceptional degree of interbranch coordi-
nation and cooperation within Planning and Management to
effectively implement.

Civil Service Reform Act (CSRA)

     °  Implementation of the Civil Service Reform Act (CSRA;
        continues to be a major priority to the Branch.
        During FY-80, PO concentrated on three main aspects
        of CSRA implementation:

           1.  Performance Standards
           2.  Merit Pay
           3.  Expanded Personnel Authorities

        Besides these CSRA implementation programs, we were
        also involved in a special follow-up study of the
        impact of CSRA on selected Government agencies.  All
        of these CSRA-related activities are described below.

Performance Standards

     0  All Regional staff were under performance standards
        for FY-80.  As a result of our early developmental
        work on performance standards as the pilot region
        for EPA's Performance Management System, we had a
        headstart on this key CSRA requirement.  We, there-
        fore, requested and were granted permission for an
        early conversion to a rating system based on the new
        performance standards.  This was done in the fall of
        1980, when Region II conductd its first full-scale
        performance appraisals utilizing the new performance
        agreements.  The results of this FY-80 rating were
        used as the basis for allocating incentive awards.
        This streamlTned the process of making incentive
        awardsfor supervisors and helped emphasize for
        Regional Staff the importance and relevance of the
        new performance management system.

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                               -17-
Merit Pay

     0  One of the Branch's major activities during FY-80
        was preparing for the Region's full-scale conversion
        to merit pay in October 1980.  As one of three pilot
        regions who had been selected by the Agency to
        implement merit pay one year earlier than mand'ated
        in the Civil Service Reform Act, we had a very
        ambitious task.  The process was novel and the
        difficulties associated with this were compounded by
        delays in the finalizing of further and Office of
        Personnel Management guidance for the pilot conversion.
        This necessitated extremely careful planning and
        analysis of options for the implementation effort.

        Personnel and Organization participated in a task
        group with the Financial Management Branch and the
        Information Systems Branch to develop a comprehensive
        implementation plan for merit pay.  This activity re-
        quired in-depth attention to the project by PO staff
        over an extensive period.  Memoranda explaining the
        various steps in the implementation process had to be
        composed, forms developed, and charts and graphs de-
        scribing key indices prepared.  As a follow-up to the
        implementation process, the Branch also documented all
        its activities in a narrative report to benefit Agency
        components switching over to merit pay in FY-82.

        The general Regional response to our implementation was
        quite favorable.  A number of employees and managers
        complimentedthe Branch on the smoothness of the transi-
        tion to merit pay, the clarity of the instruction pack-
        age developed, and the informative computer reports
        which were utilized to display the results.

Expanded Personnel Authorities

     0  As one of the key initiatives of the CSRA, many of
        recruitment and personnel authorities previously ex-
        ercised directly by the former Civil Service Commission
        were decentralized to Government agencies through del-
        egations of authority.  These new personnel authorities
        represent both the possibility of faster, more responsive
        serviceto the Region and a significant workloadincre-
        ment for Personnel and Organization.  We have agressively
        sought out these new authorities as they have become
        available.  So far, P&O has secured delegations which
        include:

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                              -18-
        0   examining authority for GS-9 through 15 positions
           formerly filled under Mid and Senior Level
           Announcements from the Office of Personnel
           Management.

        0   As part of an experimental approach, EPA and the
           Office of Personnel Management entered into an
           agreement at the national level for a pilot program
           of delegations for direct hiring authority which
           could be redelegated at the regional level, in line
           with this pilot program we received direct hire
           authority for permanent part-time pos:ition s G S - 5
           through 13 for Environmental Protection Specialist,
           Life Scientist, and Environmental Scientist positions
           with stipulation could not convert.

        0   temporary appointments lasting up to a year for
           grades GS-T through 7.

        0   extensions of details beyond 120 days and one month
           special need appointment extensions.

     We expect to receive a number of additional authorities
     during FY-81, including examining authority for engineering
     and scientific positions formerly processed by the Office
     of Personnel Management.

0PM Study  of Impact of CSRA

     0  During FY-80 Region II was selected to participate in an
        assessment of the effectiveness of the CSRA.  This study
        was initiated by the Office of Personnel Management and
        is projected to last five years.  The study is being
        conducted on a contract basis by three university research
        groups to determine if the CSRA achieves the goals set
        for it and whether these goals are desirable for Federal
        employees affected.  The Personnel and Organization Branch
        has worked closely with consultants from Case Western
        University who are performing this study in EPA.  The Branch
        has served as a Regional contact point for this on-going
        study, setting up interviews, arranging for briefings and
        answering questions about EPA for the research team.  This
        liaison effort was particularly intensive with the start-
        up of the study in FY-80, but will continue on an inter-
        mittent basis throughout the term of the study.

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                              -19-
IPA Program
        During FY-80 the -Branch prepared 26 IPA agreements.  The
        majority of these IPA assignments were part of the Group
        IPA initiative consisting of large scale support to New
        York and New Jersey in the establishment of their construc-
        tion grant programs.  P&O served as the coordinator of the
        program and continues to provide personnel services
        to IPA participants currently on assignment.  This
        innovative program was the first of its type and involved
        the Branch in working out complex questions dealing with
        conflict of interest, return rights, participation by
        other regions, etc.  One of the more significant problems
        associated with the implementation effort required a
        clarification of previous legal guidance regarding conflict-
        of-interest on the part of Federal employees representing
        a state while on an IPA assignment.  This investigation
        surfaced significant underlying questions which went to the
        core of state/federal cooperative endeavors.  The issue had
        to be submitted by our Headquarters office to the Department
        of Justice (DOJ) for resolution.  Congressional interest
        was sparked and discussions were held on the subject at
        very high levels of the government (Senator Muskie,
        Congressman Rodino, Attorney General Civiletti, etc.).
        The final decision memo on the question from the DOJ
        vindicated the Region II position and made new legal
        precedent.  The DOJ subsequently requested EPA permission
        to publish the decision because of its importance
        and broad applicability to other situations involving
        intimate state/federal cooperation.
0PM Audit
     0  The Office of Personnel Management (0PM) conducted a
        series of audits during FY-80 in most EPA installations
        across the country.  Our audit was performed by staff
        of the local 0PM regional office assisted by a technical
        expert from EPA Region I.  The audit encompassed the
        interrelationship between EPA's program accomplishment
        and the personnel component which makes these accomplish-
        ments possible.  The audit team held interviews with all
        division directors and most supervisors to determine
        possible problem areas and ways to remedy them.  During
        the several weeks that interviews were being held in the
        Region, P&O provided logistic support to the effort by
        scheduling interviews and supplying background information
        A review of official personnel folders was also conducted

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                                -20-
        by the audit team to verify compliance with personnel
        management rules and regulations.  This audit resulted
        in a favorable evaluation by 0PM of the personnel
        program being conductedin the Region and found no
        significant problem in the quality of personnel services
        being delivered by the Branch.
Transit Strike
     0  The PO Branch took a lead role in coordinating Regional
        efforts to get EPA employees into the office during the
        major transit strike which gripped New York City for
        eleven days in April, 1980.  The strike management effort
        succeeded in setting up 47 car pools in seven days covering
        approximately 98% of Regional employees who would otherwise
        have been without transportation.  Despite significant
        logistic problems involved in securing and deploying these
        vehicles, lining up volunteer drivers and allocating
        Regional staff to geographically clustered car pools, the
        transit strike coordination effort worked smoothly and effi-
        ciently.  It was a major factor in insuring that Regional
        operations were maintained at near normal levels for the
        duration of the strike.  The Federal Executive Board later
        reported that our attendance figures were among the
        highest of any agency in New York during the strike.

Reorganizations

     0  PO reviewed a number of reorganization proposals during
        FY-80 affecting S&A, Enforcement, Water and Planning &
        Management Divisions.  PO was also responsible for
        implementing these reorganizations once approved.  The
        reorganizations, involving the closing of the Rochester
        Field Office and the consolidation of technical permit
        functions in Enforcement, in particular, required
        extensive Branch planning and implementation work.

Compressed Work Schedules Study

     0  Region II was selected by the Office of Personnel
        Management for a special study of the energy and
        transportation impact of our compressed work schedules
        program.  This study involved several visits to the
        Region of 0PM staff from Washington, special briefings
        to employees on the study, the administration of
        questionnaires to employees at regular intervals, and
        continuing liaison with 0PM staff.  The results of this
        Region II study will be incorporated in a report to Congress,

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                             -21-
RECRUITMENT AND STAFFING

PC's principal emphasis during FY-80 was  the expeditious
filling of Regional vacancies.  This was  significantly com-
plicated by the hiring freeze initiated on February 29, 1980.
Some key areas of Branch activity  in the  staffing area are
discussed below.

Record Number of Personnel Actions

     0  Last year the Branch effected  235 appointments and
        413 position changes  (Promotions, reassignments etc.).
        These totals included 80 merit promotion actions and
        91 Office of Personnel Management certificate requests,
        an all time high for the Region.

Model Staffing Plan

     0  As mentioned previously PO has moved aggressively to
        secure examining authority for numerous categories of
        positions once processed by 0PM.  In securing these
        new authorities, we have also  had to assume the
        rigorous documentation and job analysis requirements
        specified by 0PM for filling these positions.  The
        requirements of 0PM1s Model Staffing Plan involve
        extensive narrative evaluation for each position
        advertised, and this has imposed  a significant addi-
        tional workload factor on  Branch  staffing activities.

ENGINEER - IN - TRAINING PROGRAM

     0  The Branch developed a special intern program to supply
        well-rounded engineering talent for the numerous technical
        activities in the Regions.  This  Engineer-in-Training
        program involved the entry level  hiring of a pool of
        engineers and the development  of  a rotational training
        planin all principal media areas.  During FY-80 this
        program resulted in the hiring of 6 engineers, two of whom
        are women.  Over the long  term it should help the Region
        provide quality staff to fill  current as well as future
        staffing needs.

POSITION CLASSIFICATION

Implementation of the Factor Evaluation System  (FES)

        Conversion to FES continued to present  a heavy workload
        to PO as increasing numbers of classification standards
        are issued in the FES format.  Position descriptions

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                             -22-


        for Regional clerical positions and for many
        scientific and engineering positions were rewritten
        according to FES specifications during FY-80.

FES Supervisory Training

     0  A schedule has been developed for training all Regional
        supervisors in the new Factor Evaluation System.  Last
        year training was provided to all supervisors in the
        Surveillance and Analysis Division on the requirements
        for describing and classifying jobs under FES.

Review of Individual Actions

     0  Position descriptions were reviewed for accuracy and for
        sound classification and position structure as part of
        the Branch review of all requests for reassignment, re-
        cruitment, promotion, etc.  Nearly 300 new or revised
        position descriptions were classified.Evaluation state-
        ments were written to support the classification of high
        grade positions and any position involving unique respon-
        sibilities .

TRAINING AND EMPLOYEE RELATIONS

Implementation of the Civil Service Reform Act and Performance Standards

     0  As discussed above, CSRA implementation and particularly
        the transition to the new performance management system
        were extremely high Branch priorities during FY-80.
        These projects took up a significant percentage of the
        employee relations specialists time last fiscal year.

Incentive Awards Program

     0  Region II has established a record of leadership in the
        Agency with the introduction of special Distinguished
        Achievement Awards for particularly outstanding employees.
        This innovative approach to incentive awards was continued
        during FY-80 in the formulation of new awards criteria and
        the direct application of performance standards to the
        incentive award process.  Although in line with the CSRA
        and Officeof Personnel Management proposals incentive
        awards are eventually supposed to be intimately tied
        in to the performance management system, Region II advanced
        the timetable for this coordination and developed special
        criteria to streamline the justifications for awards
        and base them clearly on objective performance measures
        contained in the new standards.

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                                -23-
Training Program

     0  Last fiscal year over 700 individual training requests
        were processed.  This demonstrates our strong commitment
        to the career development of Regional staff.

INTERNAL EQUAL EMPLOYMENT OPPORTUNITY  (EEO) PROGRAM

In FY-80 a significant reorganization  affecting the EEO program
occurred transferring most EEO responsibilities from the Office of
Personnel Management to the Equal Employment Opportunity Commission.
This tranfer and the promulgation of new EEO rules designed to
better identify underrepresented occupation areas required a signi-
ficant revamping of the Regional internal EEO program.

Federal Equal Opportunity Recruitment  Program (FEORP)

     0  One of the principal innovations occuring during FY-80
        was the introduction of the standards contained in the
        Federal Equal Opportunity Recruitment Program (FEORP).
        This program establishes a formal methodology for
        identifying underrepresented occupation groups and
        sets up a targeted continuing  recruitment program for
        positions which are underrepresented.  Actions under
        our revised plan include college recruitment, special
        job announcement distributions, continuing contacts
        with women and minority organizations, and establishment
        of a special EEO recruitment file of applicants for
        employment consideration.

Minority and Women Recruitment

     0  The FEORP process identified engineers and scientists
        as underrepresented occupations along with environmental
        protection specialist positions.  These positions were
        targeted for special recruitment initiatives.  The success
        of our efforts is reflected in the significant number of
        women and minority employees hired into engineering
        positions and promotions to mid and senior level positions.

Employment of the Handicapped

     0  Utilizing delegated hiring authority, the Region last year
        appointed one legally blind environmental protection spe-
        cialist.  We have been successful in placing handicapped
        individuals in a number of Regional positions where they

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                             -24-
        have functioned well over the years.  We intend to con-
        tinue our efforts to place qualified handicapped individuals
        in positions which are not incompatible with their physical
        limitations.

Federal Womens Program

     0  In the past we have had an active Federal Womens Program
        conducted on a collateral basis by Regionalstaff.For
        FY-80 we established a permanent part-time position for
        a Federal Womens Program Manager.  Under our delegated
        examining authority we are currently recruiting for this
        position and are contacting women and minority organizations
        for applicants.

Development of EPA Hispanic Outreach Program

     0  The Director of the Office of Civil Rights in Headquarters,
        requested Region II to detail PC's internal EEO specialist,
        Carmen Negron-Cruz, to Washington to help develop the Agency's
        Hispanic Outreach Program.  Ms. Negron spent a number of
        weeks in Headquarters working on this program and was suc-
        cessful in formulating an appropriate outreach program for
        the Agency.

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                           -25-
FY-81 GOALS & OBJECTIVES

General

  Place Merit Pay and Performance Management System on a Regular
  Operating BasTs"

  0  As discussed before, both of these CSRA initiatives were
     implemented by PO on a pilot basis and without final
     Agency or 0PM guidance having been developed.  Those pro-
     blem areas which arose during the pilot implementation must
     be addressed and necessary improvements made for FY-81.

  Internal Branch Workflow Study

  0  The Branch intends to analyze closely previous methods of
     operation and functional responsibilities to accomodate
     the increased workload resulting from the new CSRA delegated
     authorities.

Recruitment and Staffing

  Examining Procedures Development

  °  Streamlined Regional examining procedures have to be devel-
     oped for the many hiring delegations we now have and for
     the new authorities which are being added at a rapid rate.

  Computerized Application Tracking System

  0  In order for the Branch to function efficiently with the
     escalating number of outside applications which will be
     generated by the newly delegated examining authorities, PO
     will work closely with Information Systems Branch to develop
     an automated record-keeping system.

Position Classification

  FES Supervisory Training

  0  We plan to conduct training sessions similar to the one
     already completed for Surveillance and Analysis Division
     which will instruct all supervisors in the requirements
     of the Factor Evaluation System.

  FES Implementation

  0  All Regional Chemist positions will be converted to the
     FES format, as will others received from 0PM in FY-81.

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                            -26-
  Classification Surveys

  0  Position surveys are scheduled for all Regional organiza-
     tions.  A ten to fifteen percent sample of positions will
     be audited to verify classification accuracy.


Employee Relations and Training

  Supervisory Training

  0  The Branch will develop a series of supervisory mini-courses
     designed to satisfy 0PM training requirements for supervisors,

  Development of Suvervisory Guides

  0  The Branch plans to develop Regional operating guides for
     supervisors on cooperative education, job analysis, leave
     administration and other personnel topics.

Internal Equal Employment Opportunity

  Improve Recruitment of Minorities and Women

  0  Consonant with our new responsibilities under FEORP, PO
     will develop an expanded, carefully planned recruitment
     program for underrepresented occupations.

  Workshops to Improve Employment Opportunities of Women and
  Minorities

  0  We plan to conduct workshops for our employees dealing with
     various personnel topics and employment practices which would
     assist the career advancement of our workforce.

  Establishment of a Hispanic Advisory Committee

  0  Patterned after the Federal Women's Program advisory
     committee, this group will help develop initiatives to
     enhance the employment and training opportunities of
     Hispanics in EPA.

  Coordination of Planning for National IMAGE Convention

  0  PO's internal EEO specialist will play a key role in
     planning for the national convention of the Hispanic
     development organization IMAGE, which will be held in
     New York Citfy in 1982.  This organization is an
     important component of the Region's and EPA's Hispanic
     outreach program.

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INFORMATION SYSTEMS BRANCH

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                              -27-
During FY-80 the Information Systems Branch  (ISB) continued  its
efforts in managing information as an EPA/State resource and
in providing ADP support to every major program area  in the
Region.  The Branch was active on the state. Regional and
national levels in developing new techniques for managing
information to support program integration and permit consol-
idation.  In addition, the Branch continued  to operate over  40
Regional and national information systems supporting  the various
program areas while developing new systems and expanding exist-
ing systems to meet emerging programmatic needs.  The accom-
plishments of the Branch in information management focus on
improving the cross-media usage and quality  of automated
information maintained by EPA and the states and in ADP
management on the technology utilized to process, store, analyze
and retrieve this information.  The Branch's accomplishments
for FY-80 in both these categories are discussed in detail
below.

INFORMATION MANAGEMENT

Information is a valuable resource to both EPA and the state
environmental agencies.  ISB has endeavored  to break down the
programmatic boundaries which have frequently influenced data
collection and use to assure that different  numbering and
coding conventions and uncoordinated systems designs will not
prevent information sharing between the various programs.  In
addition, EPA and the states collect enormous amounts of data
which can overwhelm program managers; they need to find better
ways of consolidating and displaying these data if they are to
achieve maximum return on information resource investments.

During FY-80, the Branch directed or participated in seven
major information management initiatives.  These initiatives
were:

Region II, NJDEP and NYSDEC Permit Consolidation Task Force

  0  This EPA/State Task Force focused on permit
     administration and information management issues
     relative to consolidation of Federal and state
     environmental permit programs.  The Branch played
     a lead role in the Information Management
     Committee of the Task Force.

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                           -28-
     This committee produced a comprehensive report
     which included a number of recommendations
     to be incorporated in the EPA/State Agreements.
     The Branch is now actively working with its
     state counterparts to implement these recommen-
     dations.

EPA Consolidated Permit System

  0  The Branch worked closely with the EPA Head-
     quarters Offices of Drinking Water, Solid
     Waste, Water Enforcement and Management and
     Agency Services in preparing a feasibility
     study and system design for the gystem for
     Consolidated Permitting and Enforcement (SCOPE).
     This system will enable the regions and the
     states to j.ntegrate NPDES, RCRA and UIC permit
     data in a common information system.

Information Service Center

  0  The Branch implemented a contract initiative,
     an Information Service Center,to improveupon
     the Region's use of automated systems as manage-
     ment tools.  This Center is an ongoing, contrac-
     tor-operated group of data specialists working
     in the Regional Office.  The contract task
     order to operate the Center is now administered
     by the Permits Administration Branch.  The Center
     supports the NPDES, stationary air source and
     RCRA programs, maintains the Regional NPDES and
     map files and supports the Facilities Index System.
     This concept has Agencywide application and has
     generated significant interest and funding from
     the EPA Headquarters system managers.

Facilities Index System (FINDS) Support of RCRA

  0  All the environmental program areas either oper-
     ate or are developing information systems con-
     taining facility information.  The term "facility"
     is used here in a broad sense to include:  indus-
     trial plants, municipal wastewater or water
     treatment plants, wells, surface water intakes,
     disposal sites, landfills, surface impoundments,
     etc.  Unfortunately,  these various information
     systems are not integrated.  One basic obstacle
     to integrating the systems is that each system
     uses a different number to identify a facility.
     To overcome such obstacles and to encourage in-
     creased coordination and integration between both
     EPA and State programs, the Branch developed the
     FINDS system.  This system contains basic facility
     information such as name, address, ownership.

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                          -29-
     operational status, SIC code, the various
     identification numbers assigned to the faci-
     lity by the environmental program areas and
     information as to which regulatory programs
     impact the facility.

  0   During FY-80 the primary use of the FINDS
     system was in support of RCRA.  The Branch
     utilized FINDS to consolidate many EPA and
     state inventories containing potential
     hazardous waste generators, transporters, and
     storage, treatment and disposal facilities.
     This consolidated inventory was then utilized
     to mail RCRA notification packages and to
     conduct follow-up actions on non-notifiers.
     The FINDS system is now being utilized to plan
     multimedia RCRA inspections by Regional and
     state NPDES and air inspectors; thereby,  in-
     creasing the effectiveness of the limited
     RCRA inspection resources.

  0   The FINDS project has drawn Agencywide atten-
     tion and has impacted the development of  many
     new National Systems.  To share its FINDS
     experiences, the Branch made many presentations
     during FY-80 on FINDS and the Environmental
     Mapping System (MAPS).

Environmental Mapping System (MAPS)

  0   As an outgrowth of the FINDS project, the Branch
     in coordination with the Water Division developed
     the Environmental Mapping System (MAPS) to pro-
     duce computer generated map overlays.  The system
     utilizes information from several data systems to
     identify drinking water sources, air and  water
     pollution dischargers, surface impoundments,
     ambient monitoring stations, wetlands and other
     environmentally sensitive areas.  These map
     overlays provide program managers with an
     excellent tool in program integration efforts
     and will display readily information critical to
     effective emergency response, e.g., water supplies
     in vicinity of spill.  The overlays can be
     produced for base maps of different scales and
     projection technique's"!  For example, an overlay
     can be produced for a 7 1/2 minute USGS topographic
     map covering a six by eight mile area or  for a map
     covering an entire state-

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                             -30-
  0   During FY-80 the Branch produced complete sets
     of  172 overlays for the New Jersey USGS topo-
     graphic base maps and the 17 New Jersey Atlas
     sheets.  These overlays were primarily utilized
     to  assess the impacts of hazardous waste dis-
     posal sites and NPDES discharges on water
     supplies.  As a result of experience gained
     from producing these initial overlays, the
     Branch improved the MAPS system and acquired
     a more reliable and higher throughput plotter.
     The Branch also collected additional data for New
     York and Puerto Rico to produce overlays for
     these areas in FY-81.

Intergovernmental Agreements

  0   The Branch developed Intergovernmental Agreements
     with the New Jersey Department of Environmental
     Protection (NJDEP) and the New York State Depart-
     ment of Environmental Conservation (NYSDEC) for
     use of EPA ADP Systems.  These agreements reflect
     an  increasing use of EPA information systems by
     the state agencies.  Both the Region and states
     gain through use of common information systems.
     In  the future an Agreement will be developed
     with the Puerto Rico Environmental Quality Board.

Ambient  Monitoring Data

  0   The Branch participated in the development of
     the 1979 National Enviro'nmental Profiles.
     Ambient air and water quality data was retrieved
     and analyzed through use of Agency ADP systems
     to  support this effort.

  0   The Branch assisted the Regional Management
     Analytical Center (RMAC) in developing an inven-
     tory of past and current Regional ambient
     monitoring programs and in conducting an in-depth
     study of the existing and potential usage of
     ambient data by program managers.

  0   The Branch developed a computer graphics capability
     for the Surveillance and Analysis Division to
     analyze and display shoreline and New York Bight
     monitoring data.

  0   The Branch succeeded in securing from NYSDEC and
     in  processing into STORET ambient water quality
     monitoring data for 1977 through 1979.

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                             -31--
ADP MANAGEMENT

During FY-80 the Branch has met the demand for increased
computer support through a variety of initiatives.  A brief
summary of the major projects during FY-80 is as follows:

Minicomputer Implementation

  0  A PDF 11/70 minicomputer was installed in the
     June-July time period.  This was preceded by
     1 1/2 years of frustrating planning and
     coordination with GSA and four months of site
     preparations by a GSA contractor.  The site
     preparations included the installation of an
     independent air conditioning system, addi-
     tional electric power and insulated glass
     windows.  By August the Branch was utilizing
     the minicomputer to process jobs to the
     Agency's remote computer installations.
     The Branch is now improving upon the
     standard system software and is about to
     implement the Time & Attendance Data Entry
     System.

Computer Center Facilities Management Contract

  0  The Branch completed another successful year
     of utilizing contract services to operate
     the Regional Computer Center.  All keypunch-
     ing was performed on-site by the contractor
     which resulted in cost savings and improved
     turnaround times.  The computer operations
     performed well while experiencing an in-
     creased workload over the previous year.

FTE and Position Management System

  0  The Branch developed a new system to improve
     the Region's position management program.
     The system enables the Planning and Evalua-
     tion Branch to closely track and project
     Full Time Equivalent (FTE) utilization rates
     for the purpose of maximizing use of the
     Region's FTE ceiling and managing the al-
     location of positions.

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                            -32-
Merit Pay System

  0  The Branch developed a computer system to sup-
     port the Region's implementation of the Merit
     Pay Program.  The system was  utilized as both
     a projection model to simulate various point dis'
     tribution scenarios and as  a  tool to calculate
     merit pay, to analyze the data and to reporT
     and document the results.

Financial Data Entry System

  0  The Branch commenced the design and programming
     of a minicomputer based, interactive Financial
     Data Entry System (FDES).   This system will
     significantly streamline the  processing of
     financial data.  The system will also maintain
     vendor register information and produce Treasury
     Schedules in computer readable format.

MVS and COMNET Conversions

  0  During the first half of FY-80, the Branch was
     impacted by a major upgrade of the EPA IBM com-
     puter center (i.e., COMNET) to the MVS operating
     system.  Currently, the Branch"is preparing for
     a major move of the EPA IBM systems from the
     EPA contractor, COMNET, to  the EPA installa-
     tion at Research Triangle Park, N.C. (NCC-IBM).

Laboratory Data Management System

  0  The Branch operates the Region II Laboratory
     Data Management System (LDMS) to support the
     Region's Surveillance & Analysis Division
     laboratory in Edison, New Jersey.  This sys-
     tem was the first major interactive data entry
     system developed by the Region.  The system
     now operates on the central EPA IBM computer
     facility but will eventually  move to the
     Region's minicomputer.  The system is designed
     to process data from the point of receipt of
     samples in the laboratory for analysis to input
     of data to the STORET and Region II Water
     Enforcement System.  The Branch performed con-
     siderable reprogramming of  the system during
     FY-80, so that it would operate on the MVS
     operating system.  Currently, the Branch is
     conducting a parallel test  of this system on
     the new NCC-IBM computer.

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                           -33-
Hazardous Waste Facilities Inventory System (FIS)

  0  The Branch assisted EPA Headquarters in the
     development~and implementation of a major
     information system to support the RCRA Hazard-
     ous Waste Program.  This assistance included
     participating in a National Hazardous Waste
     Task Force, assisting the Office of Solid
     Waste in developing a contract task order to
     process RCRA Notification data and piloting
     the ADP training program.

  0  The Branch implemented Regional use of this
     system in July of 1980 and continues to
     support increasing Regional, state and
     Freedom of Information Act usage of the
     system.  In addition, the Branch provided
     overall RCRA data management coordination
     for the Permits Administration, Solid Waste,
     Water Permits and General Enforcement Branches
     and the contract RCRA Notification staff.
     This coordination involved planning and exe-
     cuting the consolidation of state RCRA related
     inventories and the subsequent additional RCRA
     notification mailings and 3007 letter follow-up
     actions.

EXISTING SYSTEMS ACTIVITIES

  0  Financial Management Systems

     The Branch continued to operate a comprehensive
     Regional financial management system (R2FMS),
     implemented a number of new reports and
     enhancements, accommodated 13th month processing
     and overhauled one of the older subsystems,
     Cash Reconciliation.

 0   Personnel Management System

     The Branch continued to support the national
     personnel and payroll system (DIPS), and to
     implement the new EPA Personnel Management
     Information System (PMIS).

 0   Construction Grants Systems

     The Branch continued to support the national
     Grants Information Control System (GICS) and
     the Contracts Management System (CMS).The
     Branch developed a consolidated Region/State
     GICS input procedure and implemented the
     Construction Grants ZBB workload model.
     The Branch also assisted NYSDEC with the im-
     plementation of the information management
     subagreement of the EPA/NYSDEC Delegation
     Agreement.

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                            -34-


  0  Water Enforcement System

        The Branch continued to operate the Region II
        Water Enforcement Regional System  (WERS) which
        supports the NPDES program.  During FY-80 the
        Branch completely overhauled the system to
        improve system feasibility and maintenance
        and developed a new Quarterly Non-Compliance
        Re por t.

        The Branch also participated in the Audit of
        the NYSDEC SPDES program, in the Water Division's
        assessment of the Region's NPDES program, in
        the Enforcement Division's revision of the EMS
        manual and in resolving problems with NYSDEC
        automated SPDES self-monitoring report data.

  0  Water Supply Systems

     The Branch supported the processing of state
     annual reporting data into the Federal Reporting
     Data System (FRDS).  The Branch also  assisted
     NJDEP in implementing the compliance  subsystem
     of the Model State Implementation System (MSIS).

 0   Air Systems

     The Branch continued to support the Compliance
     Data System (CDS) which is utilized by the
     Stationary Air Enforcement Program, the SAROAD
     system which maintains ambient monitoring data
     reported to EPA by the states and the National
     Emissions Data System (NEDS).  The Branch also
     provided assistance in operating mathematical
     air quality models and computer statistical
     analysis packages.

FY-81 GOALS AND OBJECTIVES

General Branch Goals

  °  convert IBM based systems from EPA COMNET
     computer center tx> new IBM computer at EPA
     Research Triangle Park computer center.

  0  operate, troubleshoot and maintain over 30
     existing systems and provide related  ADP plan-
     ning, budgeting, cost accounting and  system
     evaluation support.

Administrative Systems Goals

  °  administer Region II computer center  facili-
     ties management contract and initiate neces-
     sary equipment, software and contract services

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                          — 35-
     procurement requests.  Institute quality control
     review procedures through monthly meetings with
     primary Regional systems users and development of
     a monthly evaluation report.

  0  complete system level documentation for the
     Region II Financial Management System, revise
     documentation for the Region II Water Enforce-
     ment System and complete basic documentation
     for the Region II Merit Pay System.

  0  produce computer reports, microfiche and graphi-
     cal displays to fulfill information requests
     from Regional personnel and requests received
     under the Freedom of Information Act.

Operation of Minicomputer

  0  complete implementation of enhanced system soft-
     ware to streamline computer operations and to
     adapt to Region II operating procedures.

  0  complete installation and shakedown of hardware
     plus connect Calcomp and Zeta plotters to the
     minicomputer.

  0  implement the time & attendance and DIPS (PMIS)
     data entry software.

  0  transfer and install Data 100 for the
     Surveillance & Analysis Division in Edison, NJ.

Implement Financial Data Entry System (FDES)

  0  design, program, test and implement a mini-
     computer based financial data entry system
     including Vendor Register and automated
     Treasury Schedule functions.

  0  document system to EPA Software Exchange
     Documentation Standards.

RCRA & Uncontrolled Sites Programs Support

  0  direct the processing of RCRA permit applica-
     tion and annual report data into the national
     system (FIS) and develop and produce reports
     containing these data together with RCRA noti-
     fication information

  0  coordinate state usage of FIS

  0  implement direct Regional usage of the Site
     Tracking System (STS) and assist with STS
     data cleanup.

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                          -36-
Produce and Manage Map Overlays

  0  establish Regional Information Managers Council
     (RIMC) to guide production of map overlays,
     management of map rooms and quality control of
     data displayed on map overlays.

  0  on a phased schedule to be established in co-
     ordination with RIMC, produce sets with
     multiple copies of map_overlays for large area
     base maps (e.g., 1:250,000, 500,000 and 750,000
     scales), and l"-.mile and 7 1/2 minute USGS
     topographic base maps for New York, New Jersey
     and Puerto Rico.  These overlays will display
     pollution sources, water supplies, ambient
     monitoring stations and environmentally sensi-
     tive areas for which latitude/longitude or Universal
     Transverse Mercator coordinate data are available
     in EPA and state ADP systems.

  0  implement map room with map overlays for
     Surveillance & Analysis Division in Edison, N J ;
     transfer maintenance of map room in Regional
     Office (N.Y.C.) to Permits Administration Branch;
     advertise availability of map rooms to Regional
     personnel; and distribute map overlays to NJDEP,
     NYSDEC, NYDH and PREQB.

  0  complete modifications to version 2 of the
     Environmental Mapping System and update Users
     Guide and Program Documentation.

Complete Implementation of the Facilities Index System
(FINDS) Phase I

  0  complete contract task order with Dun &
     Bradstreet for matching various EPA and state
     inventories and process matches via CSC con-
           staff into FINDS.
     finalize and implement policy and procedures
     for Regional, NJDEP, NYSDEC and PREQB management
     •oT'common facility identification numbers.  Also
     provide necessary computer reports  microfiche
     etc. to Regional and state offices for assi^nmc-nt
     and management of these number^.

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                           -37-
  0   implement and document additional uses for
     FINDS using Phase I data base and existing
     retrieval package.

  0   conduct on-going quality control analysis of
     FINDS data base and direct contractor and in-
     house data cleanup efforts.

  0   complete implementation and program documenta-
     tion of the essential FINDS conversion, edit,
     update, subroutine and utility programs now
     under development and update FINDS system
     documentation.

  0   complete FINDS/MAPS Source File Data Element
     Dictionary.

  0   implement routine transfer of data from key
     source files to FINDS and coordinate source
     file data clean-up efforts.

Personnel Systems Support

  0   complete transfer of the production of
     all routine personnel reports from DIPS to
     PMIS.

State Assistance-Construction Grants Program

  0   assist with Grants Information Control System
     (GIGS)training for NJDEP in accordance with
     EPA/NJDEP Construction Grants Delegation'
     Agreement.

  0   provide assistance to NY5DEC in converting
     Narrative File into expanded GICS record and
     modify approximately 100 Regional report
     programs and documentation.

Support Air Modelling

  0   modify mathematical modelling programs and
     assist Air Branch in utilizing model to
     analyze impact of oil to coal conversion of
     power plants in New York area.

Computer Graphics

  0   develop graphical displays to support
     Surveillance & Analysis Division water quality
     monitoring program.

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                         -38-
RCRA Program Support

  0  develop system to track compliance inspections
     and enforcement actions.

Water Supply Program Support

  0  assist Puerto Rico with implementing scaled
     down version of the Model State Implementation
     System.

NPDES Program Support

  °  assist NJDEP and PREQB to utilize the Water
     Enforcement Regional System  (WERS) in support
     of program delegation.

  0  assist and overview NJDEP's  and NYSDEC's data
     collection and system development efforts in
     support of their EPA funded  Pretreatment and
     Residuals Management Programs.

  0  develop WERS minicomputer based data entry
     system with priority given to DMR data.

Minicomputer Implementation

  0  implement available data entry software
     packages for such systems as CDS and STORET.

  0  plan transfer of LDMS to minicomputer.

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PLANNING AND  EVALUATION BRANCH

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                             -39-
During FY-80 Planning and Evaluation Branch  (PE) continued
its role as a focal point in the Agency planning and budgeting
process, improved the management of Regional resources and
undertook several new initiatives.  Specifically, the Branch:

   0  developed the Region's FY-81 Operating Plan in conjunc-
      tion with the Financial Management Branch,

   0  provided staff support to regional managers involved in
      the FY-82 ZBB process,

   0  reviewed and revised internal resource management capabi-
      lities ,

   °  expanded Regional program accountability systems,

   0  participated in the development of the national environmental
      profiles,

   0  structured the Region's regulation development role, and

   0  reviewed Regional reorganization proposals and associated
      program requirements.


PLANNING AND BUDGETING
Guidance Development

0  The development of the operating year guidance is a
   critical Agency process in whichtheRegionTs involved
   on an annual basis.  However, during FY-80 the Agency
   moved away from a detailed, comprehensive operating year
   guidance to a more streamlined, policy oriented statement
   from the Administrator and Assistant Administrators.  As
   a result, the regional role in development of the guidance
   has changed, the focus now on issues and policy priorities,
   and the time allotted by EPA for guidance development has
   decreased significantly.

0  It should be noted, however, that the EPA activities
   formerly described through the Agency Operating Guidance
   are now largely a component of the workload models and
   workload analyses, an area in which PE has become signi-
   ficantly more active .

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o
                            -40-
   PE  has  been involved in the review of all the Region's
   workload  analyses.   We have assisted Region II divisions
   and Headquarters'  program offices in developing and
   reviewing these analyses, providing data on resource
   needs  and priority activities.  In addition, PE has
   played  a  critical  role in several key workload analyses
   which  were particularly far reaching in terms of their
   impact  on regional resources, e.g., the operating Resource
   Impact  Analysis (ORIA) for the Hazardous Waste Programs
   under  Subtitle C of RCRA.

   During  FY-80 PE also coordinated Regional input to the
   EPA FY-82 Budget Guidance.  We met with the RA and
   division  representatives and fleshed our Regional ideas
   regarding the budget year for inclusion in Administrator
   Costle's  guidance.

Regional  Participation in the Budget Process

This year  in addition to coordinating Region II comments on
the FY-80/81 Operating Guidance drafts, the Administrator's
Policy statement and  the various iterations of regional
workload  distribution models, PE supported the areas for
which  Region II provided representatives to the media task
groups in  the FY-82 budget development process(ZBB).Three
Region II  representatives participated on these groups:

      Dick Dewling on the water quality media task group,

      Herb Barrack on the management media task group, and

      Harry  Smith/Jeff Zelikson on the water supply media
      task group.

      Planning and Evaluation provided extensive staff
      support to the  DRA, attending all media group meetings
      and  ranking sessions, preparing briefing materials,
      and  reviewing analytic agenda papers.  In addition, PE
      drafted sections of the final water quality media task
      group  report to the Agency Ranking Committee (ARC).
      PE  also developed briefing materials for the other
      task group members and provided analyses of the decision
      unit packages,workload models, analytic agenda papers,
      etc.

0   PE  coordinated an  internal Regional priority setting
   meeting for the Regional Administrator and Deputy with
   division  directors at which they ranked priorities for
   FY-82;  subsequently, PE also prepared briefing papers on
   key FY-82 Budget issues and Regional positions for use
   of  the  Deputy Regional Administrator at the national
   ZBB regional ranking session.

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                               -41-
Decision Unit Group Meetings

0  During FY-80 Planning and Evaluation expanded the role of
   the ZBB decision unit groups.  The decision unit groups
   are composed of Regional program managers and initially
   were identified to enable direct involvement and response
   by concerned managers to the process of resource distri-
   bution between Regional organizations.  In the early
   part of this fiscal year, Planning and Evaluation used
   the forum of the decision unit group as an ongoing program
   integration tool.This was done by having the managers
   of each group review branch workplans common to the decision
   unit to insure consistency among all the various groups
   participatingin thatlines of communication between the
   branches.  Specifically, problems common to a decision unit
   group were identified and subjected to further review
   by the members of the group.  Also, PPA commitments for the
   upcoming fiscal year were reviewed for their accuracy
   (since operating plans are finalized four months prior to
   the beginning of the fiscal year) and cross cutting impacts.

0  PE continued to use the decision unit group meeting
   format to provide a basis for distribution of per-
   manent full-time resources prior to the development of
   the Regional Operating Plan.  The groups served a valuable
   role in reviewing workload models and providing detailed
   information to PE to assistin the recommendations to
   the Regional Administrator on position distribution.
   Once again the concept of all the managers involved in
   a single program convening to discuss program needs and
   resource constraints was valuable.  In addition to pro-
   viding one of the bases for PE' s resource recommendations,
   organizational problems and issues also surfaced at the
   meetings; problems which were addressed during the FY-81
   planning process and through the remainder of FY-80.

0  In addition to information gathered in the decision unit
   group meetings', the Agency Operating Guidance, workload
   models and the Regional Administrator's priorities are
   considered in developing the recommendations which the
   Assistant Regional Administrator for Planning and Manage-
   ment will forward to the RA.  Division directors were
   satisfied with the openness of the process and clear bases
   for the Planning and Management recommendations and were
   afforded ample opportunity to present opposing view points.
   However, it is worth noting that the Regional Administrator
   and Deputy concurred with the P&M recommendation in all but
   a limited number of cases.

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                             -42-
Operating Plan Development

Once the position distribution was finalized by the RA, PE,
with Financial Management Branch, coordinated development of
the Regional FY-81 Operating Plan.The operating plan
consisted of budgetary data, planned program accomplTshments,
and a highlight statement for activities planned for all
media.                                 ~~~

0  This year PE evaluated the operating plan input as developed
   by several branches against the workload analyses and
   compared resources allocated for a specific function
   with those actually utilized by the Region for that
   function.  Where significant discrepancies between the
   models and Regional resources were identified, an assess-
   ment was made as to the reasons for this and differences
   were either justified or revisions required.
RESOURCES MANAGEMENT
Resources Management Project

0  During FY-80 Planning and Evaluation undertook, in conjunc-
   tion with the Personnel and Organization and Financial
   Management Branches, a Resources Management Project aimed
   at assessing internal position and resource management
   procedures, streamlining recruitment activities and
   developing systems to track FTE use allocation.  A~~number
   of products of this effort are already in use on a routine
   basis, including an automated data system to track Region II
   FTE use by decision unit and by division.  This report
   allowed us to manage resources to the extent that we were
   able to utilize 97.5% of our full-time equivalent ceiling
   in FY-80.  The system provides accurate timely projections
   of work year use.

0  Another product of the Resources Management Project is the
   Status of Vacancy report to the divisions.  This report
   is a subset of the biweekly staffing report to the Planning
   and Management Division Director and will consist of a
   report to each division on the status of each of their
   position vacancies;  whether an SF-52 has been submitted
   recruiting for the position, and what the status of re-
   cruitment activity is.  Its purpose is to assure that
   the program divisions have the control mechanisms in place
   to adequately perform their key roles in the recruitment
   process.

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                             -43-
   In the planning stage at this time is the development
   of a divisional Resource Management Book for each division
   which PE will coordinate and will include;  1) a list of
   on-board staff,  2) the status of vacancies report(to
   be periodically updated)"^  3) position allocation sheets
   showing permanent full-time and other than permanent
   full-time position allocations,  4) travel and training
   budgets for the division for the fiscal year, and 5) the
   planned program accomplishment commitment levels for the
   fiscal year.These should serve each division with a
   good working tool for resources management.
HIRING FREEZE
   Planning and Evaluation is also extensively involved in
   the administration of the Presidential hiring freeze.
   P&E will continue to closely monitor the staffing le~vel
   of the divisions, allocate temporary workyears where
   appropriate to provide a minimal level of support to
   essential programs and, if the need arises, recommend
   position transfers or reprogramming among the divisions
   in order to maintain minimal staff levels.

   During FY-1980 we have, with Personnel and Organization
   Branch, maintained strict Regional adherence to the rules
   of the freeze and have kept Headquarters apprised of
   Regional staffing activities through a monthly freez"e
   report which outlines separations and accessions.
ACCOUNTABILITY SYSTEMS
   During FY-80 the Agency revitalized its system for planning
   and quantitative reporting.  Headquarters required the
   Region to report on all FY-80 planned program accomplishments
   (PPAs), some annually and some semi-annually.  At the same
   time, PE revamped the internal Region II quarterly accomplish-
   ment reporting system.  PE provided third quarter and end-
   of-year reports to the Regional Administrator on the degree
   of accomplishment of Regional programs relative to commit-
   ments, highlighting those programmatic areas where planned
   goals were not achieved.  Reasons for lack of accomplishment
   were researched and identified ranging from lack of regional
   resources,revisedRegional priorities, to the need for
   regulation issuance or Headquarters policy, et al.

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                            -44-
   In addition, during this fiscal year, the Senior Management
   Report to the Administrator and Deputy Administrator
   increased in significance.  Region II program managers
   have taken this report seriously and have used it to identify
   major Regional and national issues.  Headquarters has given
   substantial attention and follow-up to those issues raised
   by Region II in the Senior Management Report.
REORGANIZATION
0  Several regional organizational issues arose during FY-80
   requiring programmatic review by PE.Specifically, Planning
   andEvaluation analyzed program requirements in light of
   Agency regulations, available positions cross-cutting
   program impacts and coordination, and Agency and Regional
   priorities relating to the development of the Marine and
   Wetlands Protection Branch, the creation of the Hazardous
   Waste Site Investigation Unit, closing of the Rochester
   Program Support Branch, the opening of the Erie Niagara
   Field Office and a realignment of enforcement responsibi-
   lities within the Region.

Planning and Evaluation worked closely with the Personnel and
Organization Branch in developing programmatic and organizational
option papers for the Regional Administrator and Deputy
RegionalAdministrator on matters of reorganization and were
involved in the staffing questions surrounding formation of
the new branches and units.
REGULATION DEVELOPMENT
0  The number of regulations received by the Region for
   review,  be it Red Border, pre-Red Border, or Steering
   Committee draft continues to grow significantly.  We
   estimate that during FY-80 the Region handled close to
   500 such regulations or regulation related pieces of
   information.This, of necessity,limited the actual
   participation by both PE and the program staffs in the
   review of the regulations and limited our opportunity
   for effective comment.  However, late in FY-80 Headquarters,
   in an attempt to revise the regulation development process,
   developed a system which allowed the Region to highlight
   those regulations of particular local interest.  This
   process  appears to be headed toward success and will cut
   down on  the number of regulations requiring intensive

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                             -4-5-
   regional  review, allowing stronger regional comments
   and  increased participation by PE program analysts in the
   review process.

   As part of our efforts to improve the regulation development
   process,  we have also identified key staff persons within
   the  Region associated with each important developing regula-
   tion.   Thus far, our increased attention to regulation
   development has  paid dividends in the form of expanded
   Regional  comments on several major regulations, such as
   those  developed  under Subtitle C of the Resource Conserva-
   tion and  Recovery Act.
SPECIAL STUDIES/INITIATIVES
As mentioned previously, PE has been involved in FY-80 in a
number of special studies.   A discussion of these follows.

0  National Environmental Profiles;  PE coordinated and
   developed the Region II  input to the National Environmental
   Quality Profiles.  These~profiles encompass all of the
   Region II states and graphically display environmental
   quality trends and status in all media,concentrating
   especially on air quality and water quality.   While all
   ofthe operating divisions participatedin the development
   of the data required for these profiles, PE was responsible
   for reviewing the data,  disseminating guidance, serving
   as liaison with Headquarters' and the states  and insuring
   that the data were properly presented for the national
   profiles.  During this time PE also started to lay the
   ground work for a Region II environmental profile.

0  Uncontrolled Site Program Resource Analysis;   PE staff
   were also involved in the development of a workload
   analysis or workload model for the uncontrolled hazardous
   waste site program i.e., the precursor of the "Superfund"
   program.Much effort was expended in developing a model
   that would accurately represent the activities and resources
   for this program.  The analysis developed by  PE was not
   only reviewed by Region  II staff, but was also sent to
   Headquarters and was used by the pre-Superfund group in
   Headquarters as input to a workload model submitted to
   OMB with EPA's request for resources to implement Superfund.

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                             •46-
0  At the direction of the Regional Administrator and as a
   result of the Headquarters' Office of Enforcement review
   of our pesticides enforcement program, the PE Branch
   undertook a review of the pesticides program in Region II.
   This was done to provide the Regional Administrator
   with a historical perspective review of the pesticides
   program in Region II and identification of the effect
   of recent resource decreases on the program.  Further
   efforts in this area will include an attempt to
   modify the workload analyses to limit the effect of non
   delegation of the pesticides program in some states on
   the regional resource allocation, hopefully resulting
   in increased resources for Region II.

0  During FY-80 PE, working closely with the Personnel and
   Organization Branch, implemented an engineer-in-training
   program.  In this program, engineers recently graduated
   from college will be rotated througout the Regional Office
   in a variety of programs over the couse of 18 months to
   two years.  Currently, ten positions are allocated for this
   effort which spans a wide range of Regional programs
   including Construction Grants, Solid Waste, Water Supply,
   Superfund, Stationary Source Enforcement, and NPDES activi-
   ties.

0  A major organizational and resource question which arose during
   FY-80 involved the allocation of resources to the new
   effort concerning hazardous waste permitting activities under
   RCRA.  The allocation of RCRA positions within the Regional
   organization, and the organizational and functional
   questions driving the allocation decision involved a major
   effort by PE staff.  While the decision process was similar
   to that utilized prior to the development of the operating
   plan for position distribution, it was much expanded and
   much more sophisticated due to the need to project new
   activities in an emerging program.

FY-81 GOALS AND OBJECTIVES

0  Expand Regional accountability systems and the subsequent
   linking of State/EPA Agreement and national PPA commitment
   tracking.

0  Develop a Region II Environmental Profile and work closely
   with the Regional Management Analytic Center in its efforts
   to develop statewide environmental status r¥ports.

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                        -47-
Prepare and implement an agenda of program evaluations
including an assessment of state drinking water primary
enforcement efforts, Great Lakes program and pesticide
enforcement resource requirements, and workload model
development efforts.  Also develop Regional planning
papers such as an analysis of a future Superfund imple-
mentation program in RegionII.

Maintain required controls under the federal employment
freeze and as necessary reassess position allocations
and propose intra-Regional personnel shifts.

Develop FY-82 position allocation recommendations, parti-
cipatein the preparation of the Region II FY-82 Operating
Plan and an FY-83 budget priorities ranking table.

Maintain overview of Region II participation in the
regulation development process andimprove timeliness
of Regional comments on proposed Agency rulemakings.

Complete implementation of position reductions identified
in the annual planning and budgeting processes.

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PERMITS  ADMINISTRATION  BRANCH

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                             -48-
Th e Permits Administration Branch (PAB) marked FY-80 with
continued expansion into new programs.  PAB now has
responsibilities in varying degrees under four legislative
areas,  the Clean Water Act, Clean Air Act, Resource Conservation
and Recovery Act and Toxic Substances Control Act, covered by
six ZBB Decision Units.  Its focus has remained administrative
management/compliance tracking surrounding reissuance of
National Pollution Discharge Elimination System (NPDES)
permits, prevention of significant deterioration permits and
New Source Review, but now, in addition, also includes a
similar role in the Hazardous Waste Management Program and
Consolidated Permit Program.  Its function continues to be
that of administrative and basic technical/legal support for
major Regional programs and its staff takes active and important
roles in program planning as well as conceiving, designing
and implementing systems and procedures for program management.
The Branch is divided into three sections - the Processing
Section, Air and Environmental Applications Section and
Water Compliance Section.  Some of the FY-80 achievements by
the Branch are described below.

AIR PROGRAMS

Prevention of Significant Deterioration (PSD)

  0  The Air and Environmental Applications Section (AEAS)
     has been deeply involved in virtually every phase of the
     PSD program.   AEAS chaired approximately 80 meetings
     with the industrial community to advise these potential
     sources of PSD requirements.  The complexity of these
     requirements was compounded by the issuance of revised
     regulations in the latter part of FY-80 in response to
     judicial action in the Alabama Power vs. Costle (No. 78
     1006, D.C. Cir.).  The Administrator of EPA issued
     an administrative order on January 30, 1980,  which
     basically stated that new sources or modifications
     would be PSD affected only ifthey werefoundto be
     subject under both the existTng PSD regulation
     (June 19, 1978) and the PSD regulations proposed on
     September 5,  1979.  Pursuant to this order, Region II
     re-reviewed approximately 90 cases.Final regulations
     were promulgated on August 7, 1980.  Approximately 60
     sources were re-reviewedunder these new regulations.

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                               -49-
Bubble Policy

  0  During FY-80 EPA devised a policy which allows the
     consideration of a group of emission points as though
     they were one and includes consideration of economic
     factors.  This is known as the Bubble Policy.  AEAS
     became the focal point for promoting this new policy
     within Region II and has participated in a number of
     meetings/workshops with states and industry.  To date
     seven industry bubble proposals have been coordinated
     and approved through AEAS leadship; these applications
     include; 1 can manufacturer,  3 paper/film coating,  2
     utilities and 1 chemical plant.The chemical plant
     estimates $12 million savings.  There are no estimates
     for the other sixsources.

Tracking of Compliance Status for Stationary Sources

  0  The Compliance Data System (CDS) is the repository
     of information pertaining to the status of air emission
     source compliance nationally.  AEAS is the focal point
     for Region II CDS.  Early in FY-80 a Division of Stationary
     Source Enforcement (DSSE) audit listed several areas in
     which improvements in the Regional CDS were requested.
     AEAS coordinated a Regional program to accomplish these
     goals.  Among improvements are:

        the training and utilization of contractor personnel
        for routing data input and retrieval,

        the revision and improvement of coding forms and
        retrieval schedules,

     -  the formulation of standard retrieval packages to
        assist enforcement and management programs and the
        development of a contractto enter PSD information
        into CDS.

Priority Energy Projects (PEP) Tracking

  0  The AEAS is the Regional Energy Contact and is responsible
     for assuring expedited action and providing Headquarters
     with status updates on key energy-related facilities
     awaiting permitting actions.   AEAS began the development
     of a tracking system to accomplish this.  Thus far five
     facilities have been selected for tracking including
     two coal-fired power plants,  one resource recovery
     plant, one petroleum refinery and one co-generation power
     plant.

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                             -50-
New Source Focal Point

  0  The AEAS serves as the single point of contact for
     industries which request EPA permits for new construc-
     tion.  The AEAS has led the coordination of these
     permitting activities for about twelve facilities
     requiring multi-program reviews (e.g., power plants,
     sludge incinerators,refineries).  Both the public
     and industry benefits from AEAS1  coordination of
     multimedia permit public noticing and public participation
     activities.

WATER PROGRAMS AND CONSOLIDATED PERMITS

New Responsibilities Under the Clean Water Act

  0  As anticipated, the enactment of the Clean Water Act
     of 1977 (CWA) continued to require certain procedural
     changes from those of the Amendments of 1972.  To
     meet these new requirements, the Water Compliance
     Section (WCS~)of PAB succeeded in:

        revising the Regional Quarterly Non-Compliance Report
        (QNCR)toinclude effluent violators and meetingthe
        modified format required by Headquarters;

        establishing the procedures whereby notice of the
        need for a formal~Administrative Record is provided
        by PAB sufficiently in advance offormal hearings
        to assure adherence to regulatory requirements;

        initiating the use of the new Consolidated Permit
        application forms for NPDES (and other)facilities;

     -  planning a new file system designed to include not
        only NPDES but all facility-related information
        in one location;

        assisting in the implementation of the newly required
        Quality Assuance requirements in NPDES permits;

        assisting in the development of the Regional Municipal
        Management System (MMS)  required by Headquarters and
        adding Pretreatment modifications to certain NPDES
        permits;

     -  acting as the Regional Coordinator for the Consolidated
        Permit Program and initiating the use of facility
        Dun and Bradstreet numbers to identify facilities.

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                              -51-
NPDES Program Management

  °  Utilizing our Local Effluent Data System (LEDS) as a
     model,  Headquarters has implemented a similar system for
     major dischargers in the other nine Regions^They
     anticipate the system will be fully operational in early
     1981.

  0  New York State has been delegated the NPDES for five years.
     PAB, in concert with several other branches, participates
     in the oversight of this delegation through periodic
     audits and reports.  These have recently surfaced
     problems regarding the State's capability to provide
     automated monitolFTng of compliance data for effluents.
     PAB is working closely with New York and Regional program
     managers to assure adequate monitoring and has developed
     a program designed to assist New York in overcoming their
     difficulties.  This program will be offered to NYSDEC
     early in 1981.

  0  PAB reviewed 7605 discharge monitoring reports and
     detected 3508 having one or more effluent violations.
     In addition,almost 400 schedule violations were defected
     by PAB.  Responses to these violations vary as to originator
     and type; PAB itself generates almost 2600 responses
     including letters, Administrative Orders, Notices of
     Violation and referrals to the Water Enforcement Executive
     Committee (WEEC) and/or NYSDEC for further legal action.

Hazardous Waste Management Program

  0  FY-80 witnessed the promulgation of a number of new
     regulations implementing aspects of the Resource Conser-
     vation and Recovery Act (RCRA).  PAB coordinated Regional
     efforts requiring cooperation from the General Enforcement
     Branch, Solid Waste Branch, Information Systems Branch
     and the Information Service Center (contractor support).
     These efforts resulted in:

        processing more than 9000 notifications from handlers
        of hazardous materials;

        identifying and issuing over 4000 warning letters and
        20^ initial Notices of Violation to potential illegal
        non-notifiers;

     -  responding to more than 2000 telephone calls from industry
        requesting information on applicability of regulations
        to their operations;

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                               -52-
        planning and initiating steps necessary to process
        Part A and B permit applications for treaters, storers
        and disposers of hazardous waste;

        participating in planning and overviewing Cooperative
        Arrangements under RCRA Subtitle C and with states
        aiming toward program delegation under Interim Authori-
        zation regulations.

OTHER ACTIVITIES

Facilities Index System (FINDS)

  0  PAB continues to contribute to the development of the
     Facilities Index System (FINDS) which is designed to
     link each facility in the Region with each of the
     regulatory environmental programs under EPA and the
     states to which it is subject.Enhanced by the inventory
     and responses to the Hazardous Waste notification process,
     FINDS is now the most complete single file of Regional
     facilities subject to one or more of each environmental
     program including air, water, toxics, hazardous waste
     and others.  Organized based upon the Dun and Bradstreet
     identification numbers, the FIND System will become
     the foundation of the Consolidated Permit Program File
     as it gets underway and has been the basis for development
     of maps which Regional program managers use to identify
     various effluent discharges, emission sources, water
     supplies, acquifers,  landfills to enable more coordinated
     emergency responses and program priority setting.

Citizen Complaints and FOIA

  0  The number of complaints from citizens and environmental
     groups particularly for water pollution, noted for FY-79
     continued in FY-80.  This was compounded by over 100
     Freedom of Information Act (FOIA) requests directed to
     PAB alone.  Responses to all FOIA requests were made
     within regulatory timeframes.  PAB responded to all
     complaints within its immediate purview and referred those
     of a highly specialized nature to the appropriate Regional
     unit for response (i.e., a spill).  Approximately 35
     out of over 200 remain in an investigatory status.

Administrative and Procedural Matters

  0  PAB continued to maintain official records pertaining
     to oil spill Findings of Violation and Ocean Dumping
     Permits"

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                            -53-
  0   Toward the end of FY-80, PAB began transferring many of
     its documents onto microfiche"The first phase will
     include so called "dead" files, i.e., those which will
     not continue to grow, such as, non-filer Affidavits of
     Exemption and expired permits.  Original documents
     will be retained but stored off site in a government
     warehouse.

  0   Industry Assistance with respect to advice and guidance on
     eligibility for Rapid Tax Amortization (RTA) and Small
     Business Administration (SBA) sponsored loans for the
     purpose of achieving environmental controls and continues
     to be a small but important Branch activity.  We anticipate
     this activity may increase in FY-80 following the issuance
     of second round permits for water and RCRA permits for
     hazardous waste treatment.

  0   Enforcement Management System - Revision and expansion
     of the originalRegional Water Enforcement Management
     System guide to meet the needs of Headquarters began
     in lateFY-80.  Using the original guide as a frame,
     major addition from all Branches involved in the NPDES
     program (Water Permits, Water Enforcement, Information
     Systems and Surveillance and Monitoring) will produce
     a new guide early in FY-81.  This new version will
     specify time frames and employees responsibilities from
     clerk/typist throughDivisionDirectors for each activity
     necessitated by the complex NPDES enforcement program.

  0   TSCA Confidentially Clearances - PAB is the Regional focal
     pointfor all employee clearance necessary for access to
     TSCA confidential material and is the contact with HQ
     on all material confidential information.

FY-81 GOALS AND OBJECTIVES

Air  Programs

  0   Dates for delegation of the PSD program remain uncertain,
     although some discussion has taken place.  PAB still plans
     to work closely with state counterparts when delegation
     becomes imminent to assure a smooth transition consistent
     with regulatory requirements.  To this end, PAB will
     organize and conduct seminars for state personnel to
     assure their complete familiarity with the newly revised
     regulations.

  0   PAB anticipates increasing interest and further favorable
     reaction to the EPA Bubble Policy (BP) and expects industry
     will submit a significant number of proposals in FY-81.

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                             -54-
     To  meet this heightened interest PAB plans to continue
     its support of^the BP by meeting with industry" officials,
     participating in general meetings and seminars and actively
     proposing the policy to potential users.

  0  PAB is committed to rectifying those CDS shortcomings
     identified in FY-80 by the second quarter of FY-81.
     It  is further committed to extending improvements
     beyond the minimum necessary so that the CDS will become
     an  integral and  major part of the multi-media/purpose
     Regional FINDS.

  0  PAB will complete the development of its system for  the
     tracking of the  status of Priority Energy Projects
     (PEP)according  to requirements set forth by Headquarters.

  0  PAB will complete the development of its role as New
     Source Review Focal Point.  Particular emphasis will be
     placed upon coordination of review of multi-media
     applications for projected new facilities.

WATER PROGRAMS

  0  The long delayed delegation of the NPDES program to
     New Jersey is expected to occur by the end of FY-81
     or  early FY-82~I   PAB will aid the planning and transition
     process by contributing advice and guidanceto state
     counterparts, preparing all necessary documents for
     transfer and planning its own state-overview function.
     Of  particular importance will be the instruction and
     guidance of state personnel in use of our ADP systems
     for program management support.  Subsequent to delegation,
     PAB will participate in overviewing New Jersey program.

  0  PAB will cooperate with NYSDEC to help modify NPDES
     procedures so that the state will be able to meet their
     NPDES deleg_ateci_ commitments for timely and effective
     enforcement action particulary the handling of Discharge
     Monitoring Reports.

  0  PAB plans to modify and improve its ADP for NPDES to
     include Headquarters' recently revised majors list
     and to add Interstate Sanitation Commission (ISC)
     and state sampling inspection data to the Local Effluent
     Data System (LEDS).  The LEDS will then contain all
     historical effluent data measured for each facility under
     EPA authority or overview in the Region as well as
     indicate all violations specifically.

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                              -55-
Hazardous Waste Program

  0  PAB plans to participate and advise in the development
     of ADP systems to support the activities of the Hazardous
     Waste Management Program in the Region.  Since the
     development of the Headquarters System is lagging and
     the reporting requirements are currently placed upon
     us, we must implement their system on our own or devise
     one on an interim basis at least.

  0  PAB will continue to take an active role in the development
     and subsequent implementation of a Regional enforcement
     strategy for Hazardous Waste.

     Drawing on experience gained from the NPDES program,
     PAB is in a unique position to provide a number of
     services to track performance, identify violations
     and advise the program areas of manifest discrepancies,
     manifest exceptions and permit violations.

  0  RCRA regulations will require the issuance of a Quarterly
     Non-Compliance Report similar to that currently required
     for NPDES permittees.  Again, drawing upon its experience,
     PAB will develop procedures to produce this report in
     keeping with regulatory requirements.

  0  The administrative procedures to be employed in the
     effective processing of RCRA permits must be defined.
     Drawing upon its experience with the administrative
     coordination of permitting activities in various program
     areas, the PAB is optimistic that an efficient RCRA
     permitting system can be on line by late FY-81.

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GRANTS ADMINISTRATION BRANCH

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                             -56-
The Grants Administration Branch (GRA) provides centralized
administrative support to all Regional grant programs,
including the review and processing of all grant actions
from application through closeout and resolution of audits.
The Branch also provides cost analysis services for grants
and regional contracts, reviews selected grantee and consultant
financial assurance requirements for hazardous waste permits.
Highlights of our activities during the past year are described
in the following sections.

REORGANIZATION

During the past year, GRA planned and received approval for a
major reorganization of the Branch.  Under the reorganization,
two grants administration sections are being established with
each section responsible for construction grants and 208
grants on a geographic basis (N.Y./V.I. and N.J./P.R.) and
other grants on a program basis.  This is in contrast to the
former organizational structure which consisted of one section
for construction grants, and the second section for all
state and local assistance grants, cost analysis, and financial
reviews.  A new Cost Analysis Section is being established
with financial expertise to focus upon audit resolution,
cost analysis of contracts under grants and direct procurement,
and determining applicant compliance with financial requirements
o_f the hazardous waste permit program.  The benefits to be
attainedfrom the reorganization are as follows:

   0  More effective training, guidance, and oversight
      of state delegations.

   0  Providing better support to project officers on all
      grant programs.

   0  Expanded capability in administering the increasing
      number of state and local assistance grants with existing
      staff.

   0  Significant reduction in audit backlog.

   0  Better focus for new responsibility on financial assurance
      aspects of the hazardous waste permit program.

Although achieving these objectives will take time, the
reorganization has been an essential part of management
improvement in the Branch.

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                             -57-
CONSTRUCTION GRANTS

  0  The most resource intensive grant activity for the past
     year was devoted to administration of a record number
     of construction grant awards before October 1, 1979.
     Four hundred and fifty six construction grant actions were
     awarded during the year and no funds were lost to the
     Region through reallotment.  All of the steps in
     processing the 240 construction grant actions in the last
     few weeks of September were completed in a timely manner.
     State agencies in New York and New Jersey rendered
     invaluable assistance to the end of the year effort
     by assigning State staff to work full time in the Regional
     office for several weeks.Improvementsin planning
     logistics, staffing, and coordination of this major
     end of year effort resulted in a smoother operation.

  0  The Branch achieved its payment output commitment on
     a monthly as well as an annual basis.  This commitment
     is monitored closely by Headquarters and Office of
     Management and Budget.

DELEGATION OF THE CONSTRUCTION GRANTS PROGRAM

The primary goal for the construction grants program in this
Region is to assist states in assuming total delegation as
quickly as they are able to do so.  During the past year,
considerable progress toward that goal was achieved with New
York State.  The first phase of delegation to the Puerto Rico
Environmental Quality Board was initiated^Also,a major
effort to staff New Jersey's construction grants program with
EPA employees under the terms of the Intergovernmental
Personnel Act (IPA) was finally completed.  Highlights of
delegation activities over the past year are as follows:

  0  An entire delegation agreement package was developed
     and negotiated with Puerto Rico including program
     management and staffing plan, specific delegation
     subagreements, and oversight activities.

  0  This past year, all of the construction grant review
     functions performed by GRA (except audit review) were
     delegated, either formally or informally, to the New
     York StaTe Department of Environmental Conservation
     (NYSDEC).  However, due to problems in staffing and
     other issues, full performance of responsibilities
     by the State is still mixed.

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                           -58-
  °   Activities to support NYSDEC delegation included
     providing training and workshop sessions for State
     program administrative staff,  developing procedures
     with the State,  updating specific delegation subagree-
     ments,  and responding to requests for guidance and
     assistance.

  0   Formal  program and fiscal evaluations were performed
     TT  January and August of this  past year.  Reviews
     focused upon the State's use of resources in accordance
     with the 205(g)  grant and the  State's overall program
     management strenghts and weaknesses.  A Headquarters
     report  on regional oversight of state delegations
     commended the Region II approach to program evaluation
     as one  of the best in the country.

PROGRAM GRANTS

GRA's long term objectives for program grants in the Region
are  (1) to achieve better integration of program grants with
the  State/EPA Agreement schedule and process, and (2) to
improve program grant cash management.

Work began this past year with an initial effort to establish
a grants calendar for the air program which attempted to
integrate milestones and dates for  the grants cycle and the
State/EPA Agreement process.  Many problems surfaced through
this initial study, but the effort  demonstrated potential for
streamlining, reducing paperwork, improving Federal/State
relations, and a more meaningful State/EPA Agreement process.

A review of  prior year grants revealed a significant number
of overdue Financial Status Reports and balances of grant
dollars remaining in prior year accounts.  In order to ensure
a proper accounting of prior year grant funds and make the
best use of  any remaining balances, we completed the following
actions:

         improved monitoring and tracking of overdue FSR1 s
         and available balances.

      -  a substantial reduction in overdue FSR's and closeout
         of  prior year accounts.

         the issuance of improved FSR guidance package to grantees

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                            -59-
STAFFING

  0  The position of financial analyst was authorized for
     the Branch to assist states in determining applicant's
     compliance with financial requirements of the hazardous
     waste permit prograriuRecruiting for this position will
     bring a new area of expertise to the Region which we
     plan to use to full potential.  Unfortunately, recruiting
     has been delayed due to the hiring freeze.

  0  An employee of the Puerto Rico Aqueduct Sewer Authority
     (PRASA) spent one year working in the Branch on an IPA
     assignment.  During the assignment, she performed admin-
     istrative and financial reviews of construction grants
     from application through final audit.  Her work benefited
     the Branch and should assist PRASA in improving its
     grants management capability.

  0  A Branch staff member was on IPA assignment with the
     Environmental Quality Board (EQB) in Puerto Rico for six
     months.  During the assignment, he assisted EQB in
     their financial management improvement program and
     provided valuable training and assistance in grants
     administration.

AUDIT MANAGEMENT

In response to criticism from GAO, Congress, and the Inspector
General  (IG) concerning the volume of unresolved audits, the
Agency placed a high priority upon audit resolution during
this past year.  With a continuing Regional backlog of
approximately 125 audits and the recognition that audit
resolution is a resource intensive activity, we embarked upon
a crash program which resulted in:

  0  Updating information in our computerized  tracking system
     for all audits received in the Region.  Comparisons
     with the Office of Inspector General's (DIG) data base
     confirms that our data is more current, reliable, and
     useful to us.

  0  Prescreening of all audits in the Region  to summarize
     key audit finding in each report.  This activity was
     essential for us to determine what regional office
     should resolve the audit and what audit priorities
     should be.  Through prescreening, it became clear that
     the majority of issues raised in the audit reports
     addressed administrative and financial compliance issues
     which should be resolved by GRA.

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                            -60-
  0   Revising Regional audit resolution policies and pro-
     ceduresin order to:

        -  Centralize more authority and responsibility
           for audit determinations in GRA;

        -  Develop a more  understandable, consistent format
           for audit resolution letters which clearly sets
           forth the Region's determinations concerning each
           audit finding and any amount to be recovered;

           Develop procedures for using bills for collection
           as part of audit resolution.

  °   Resolving approximately 40 audits covering construction
     and program grants.

  0   Coordinating procedures with the Puerto Rico Aqueduct
     Sewerage Authority whereby a CPA firm under contract
     to the Authority will perform the preaward audits of
     selected engineeringfirms,and the audit findings will
     be used  in PRASA's negotiating a final contract price.

     Despite  these efforts, the backlog of unresolved audits
     grew during the year.  With grant activity increasing
     heavily  in May through September, and State delegations
     proceeding slowly, a  significant reduction in the backlog
     must be  deferred until Fiscal Year 1981.  However, the
     accomplishments of Fiscal Year 1980 have provided us with
     a framework to manage the activity and focus resources to
     achieve  better productivity.

FY-81 GOALS AND OBJECTIVES

Reorganization

The  primary goal for the Branch as a whole will be to complete
its  reorganization.  Key activities to be accomplished include;

     0  Selecting and assigning staff to new positions.

     0  Conducting orientation and training.

     0  Developing new procedures.

     0  Establishing good  communication between staff  in new
        positions and their counterparts in the Region, states
        and local governments.

     0  Incorporating the  goals of the reorganization  into
        objectives and performance standards.

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                           -61-
Audit Management

Key objectives in this area for Fiscal Year 1981 will be to
achieve a significant reduction in the Region's audit backlog
and to establish procedures to avoid a reoccurrence of such a
backlog.  The following will be undertaken to achieve these
objectives:

     0  Assigning one grants management specialist with full-
        time responsibility for audit monitoring, coordination
        and resolution.

     0  Establishing targets for audit resolution and monitoring
        progress in achievement targets.

     0  Negotiating the delegation of audit resolution activities
        to NYSDEC.

     0  Updating Regional procedures for audit management.

     0  Continuing close liaison and coordination with the Office
        of Inspector General.

     0  Maintaining data base for audit tracking and providing
        management reports on the status of audits.

Hazardous Waste Permit Program

With the addition of a financial analyst in the Cost Analysis
Section, the Branch will be working closely with Regional and
state counterparts to develop the ability to deal with the
financial assurance requirements specified in the RCRA law
and EPA regulations for the hazardous waste permit program.
Activities during this next year will focus upon:

     0  Meeting with state and regional offices to develop
        a program strategy and tasks to be undertaken.

     0  Conducting workshop sessions with the regulated
        community and financial institutions.

     0  Developing procedures and information packages.

     0  Performing selected reviews of compliance.

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                            -62-
Program Grants

Through its reorganization plan, GRA will be realigning program
grant responsibilities between two grant sections.  This will
enable the Branch to service the increasing number of program
grants from application through closeout.  In addition,
special attention will be placed upon:

     0  Undertaking on-site visits to grantees.

     0  Improved monitoring and reporting of cash management
        under grants (payments, advances, letters of credit,
        Financial Status Reports).

     0  Eliminating the backlog of Financial Status Reports.

This year, the Branch plans to participate actively with an
effort being undertaken by the Program and Toxic Integration
Branch to achieve better integration between grants and the
State/EPA Agreement^As oneoutput,we hopeto establish a
grants calendar to coordinate scheduling requirements of both
grants and SEAs, define and assign responsibilities for each
milestone in the calendar, and provide for more meaningful
program grant evaluation.  This will take more than one year
to actually achieve, but we hope to have the calendar designed
for use with the FY-1983 SEA process.

Construction Grants

The primary goal for the Branch in the construction grants
program is to participate in developing and implementing a
Regional strategy for effective management and oversight of a
program in which day-to-day activities will be performed by
delegated states.  This effort will build upon the considerable
amount of work which has already been done at the local,
state, Regional and Headquarters level to develop a 1990
Construction Grants Strategy.

As part of the strategy, we will be working with states to
define roles and responsibilities of each level of government
under full delegation, measures of performance, and program
support needs.  This is a long term objective that will be
initiated this year and will parallel developments in
Headquarters.

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                          -63-
Construction grant activities of the Branch during this year
will also focus upon theseImmediate needs:

     °  Ensuring full and successful delegation of grants
        administration functions in New York and New Jersey.
        This will involve completing the update of both
        delegation agreements now two years old or more,
        andfinal negotiation of all subagreements,  providing
        training and policy guidance, continued coordination
        of actions among states, corporations, grantees and
        the Region, etc.

     0  Monitoring delegation performance through formal
        program and fiscal evaluations and other monitoring
        techniques.  In New York, we will build upon the
        formal mid and end of year reviews performed last
        year and will continue to stress overall State per-
        formance, management systems, procedures and capabili-
        ties.  An important new element will be to attempt
        to define measures of performance to evaluate state
        performance in meeting administrative program
        objectives.

     0  Performing direct administrative functions for New
        Jersey and Puerto Rico until these States are
        fully responsible for program performance.  This
        represents a significant workload which impacts
        accomplishments in other areas.

     0  Participation in some innovative approaches to
        address existing weaknesses in the program,  be
        including:

           -  Third party management for small communities;

              Certification of large grantees;

              Improving financial options and financial
              management capabilities of grantees; and

              Adapting management information systems to
              meet needs of delegations.

GRA has already begun to work closely with a consultant on  a
special project to develop financial management guidance and
training material for grantees.Material is being designed
to meet local government needs in managing grants and in
ensuring financial self-sufficiency when POTW1s are operational,

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FACILITIES AND ADMINISTRATIVE MANAGEMENT BRANCH

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                             -64-
During FY-80 the Facilities and Administrative Management
(FAM) Branch concentrated on expanding  activities  to meet
growing needs. A major accomplishment was  the reorganization
of the Branch into three sections-Facilities Management,
Administrative Management, and Contracts Management—to
effectively streamline activities within the Branch.  The
Contracts Management Section highlights a  function within
the Regional Office to address EPA's growing emphasis on
contracting, of particular importance in view of the recently
passed Superfund legislation.  This reorganization is a
basic example of the trend of growing capabilities which
have been developed in the Branch.  Presented below are the
significant activities which were accomplished during the
fiscal year which also help to demonstrate an enhanced
capability.
FACILITIES MANAGEMENT
Region II holds title and has accountability for the third
largest EPA-operated facility in the nation consisting of six
buildings on 15 acres of land in Edison, New Jersey.  The
buildings and grounds provide operations space for the activities
of the Surveillance and Analysis Division, two R&D components
of ERC-Cincinnati-the Oil and Hazardous "Materials Spills
Branch and Storm and Combined Sewer Section of the Municipal
Environmental Research Laboratory and the Headquarters
Environmental Response Team.  Expertise of the highest level
in the fields of macro and micro-biology, physical and
bacterial chemistry, and special instrumentation capability
is available at this facility.  The Facilities Management
Section's aim is to furnish the operating programs with
functional work space and those auxilliary administrative
services required to facilitate their efforts.

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                             -65-
FACILITY OPERATIONS

   0 Contractual Services

     Maintenance, operation, and support services for the
     Edison Facility were continued this year by the Bendix
     Corporation at a very satisfactory level. This service
     has been so satisfactory that both management and pro-
     gram staffs have recommended and requested substantial
     increases in the scope and complexity of the contract.
     These changes are under study and will be included in
     the next Request for Proposals due to be issued in mid-
     mid-1981.

     As a front runner in this type of action, Region II
     provided advice and information on the contract, not
     only to other EPA installations, but also to the Depart-
     ment of Agriculture headquarters staff and itsfield
     stations at Ames,Iowa, and Plum Island, New York.

    0 Architect/Engineer Selection Board

     Because of our numerous and diverse activities in
     buildings and facilities programs, the Planning and
     Management Division participated in the Headquarters
     based A/E selection process. Over 35 proposals were
     studied, reviewed and evaluated in completing the
     selection process.

    0 Training

     Space, utilities and services were provided for the
     National Environmental Repsonse Team and the Particu-
     late Emissions Program training programs.  Both involved
     not only such in-house services as close circuit
     television and audio-visual presentations, but also
     negotiations with GSA for use of their buildings and
     grounds on a continuing basis.

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                             -66-


REPAIR AND IMPROVEMENT PROGRAM

   0 Master Plan Implementation

     Several major steps were taken this year towards the
     goal of making the Edison Facility a prime EPA opera-
     tion.  The first was the initiation and completion of
     work on both phases of a new sanitary sewer system.
     Our system is now complete and fully operational with
     many years of safe, efficient service anticipated.  The
     second and third steps were the beginning of the design
     work for a new heating plant and basic electrical"
     entrance service for the EPA enclave.  Current planning
     calls for construction of the projects during Fiscal
     Year 1982.

   0 Other Project Activities

     Efforts in this past year also concentrated on the fol-
     lowing specific activities:

     - Completion of space renovations in the basement of
       Building 10 to house the National Environmental Re-
       sponse Team

     - Completion of the Gas Chromatograph/Mass Spectrometer
       Laboratory construction

     - Design and bid of the Electron Microscope Darkroom

     - Design and bid of the HVAC cooling tower replacement

     - Preliminary determination of depth and scope of the
       major roof repair and resurfacing of Bay F, Building
       209

     - Preparation of specifications for the reactivation of
       Building 5 and the remainder of the basement of Building
       10 to house expanding activities.

   0 Building and Facilities Budget Process

     In conjunction with the Surveillance and Analysis Division,
     the Facilities and Administrative Management
     Branch initiated for the first time, a FY-1982 Repair and
     Improvement budget submission that included construction
     and renovation projects dictated by program requirements
     for more highly technological laboratory and field
     activities, along with traditional physical plant and
     facility projects.  A combined budget of $2,670,250
     was formulated.

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                             -67-
    Significant projects in this budget which will be
    required to carry out EPA's growth in the handling
    of hazardous wastes are as follows:

    - Toxic Chemical Handling & Preparation Laboratory
    - GC/MS Laboratoy Enlargement
    - Special Labware Preparation
    - Biotoxicity Laboratory
    - Tissue Culture Laboratory
    - Clean Room-Metals Analysis
    - Clean Room-Metal Sample Preparation
REAL PROPERTY

    The Edison Facility was the subject of an in-depth GSA
    property utilization survey during the fiscal year.The
    results showed that EPA, with its on-going and developing
    programs and Master Plan activity, is fully justified in
    maintaining possession of its property.

    With the results of this survey in hand, it is now appro-
    priate to proceed with a request to (GSA) for additional
    property to satisfy our need for a safe helicopter opera-
    tions area and a large vehicle staging area to cover
    ORD's existing need which is now met by utilization of
    GSA property.
                     CONTRACTS MANAGEMENT
During this fiscal year, the Facilities and Administrative
Management Branch continued to develop a capability in the
area of contracts management.  Regional needs were effec-
tively met through a growing assumption of responsiblity
in the handling of all Regional contract activity.  Al-
though operating under a delegation of authority of $100,000,
the Region handled all actions as Contract Negotiator, regard-
less of dollar amount.  Illustrations of this activity are
as follows:

    0 The award of numerous contracts to support activities
      in conjunction with the Hudson River Power Case hear-
      ings.  This included the award of a contract for steno-
      graphic services and the award of a contract for expert
      technical services to Temple, Barker, and Sloane, Inc.
      In addition,several smaller contracts were let for
      expert witness services.

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                             -68-
    0  An  award of a competively bid contract to the renowned
      Mt.  Sinai School of Medicine's Environmental Sciences
      Laboratory under the direction of Dr. Irving Selikoff
      for  the  development and continuation of a Medical
      Monitoring Program for regional employees exposed to
      hazardous and toxic substances.

    0  The  award of a minority Section 8(a) procurement to
      Uniworld Group, Inc., for the publication of legal
      notices.

    0  The  award of a contract under the auspices of the
      Javits Amendment to the Wagner O'Day Act for on-site
      Administrative Support Services.

    0  The  award of a contract for 201 Public Participation
      training to Barry Lawson Associates.

    0  A technical support contract for advice on matters
      relating to the implementation of the Region's flood-
      plain/wetland/urban impact policy as it pertains to
      New Jersey's Hackensack Meadowlands.

    0  The  takeover of issuance of Directives of Work for
      Environmental Impact Statements  and assessments for
      RegionII under a previously awarded Headquarters
      contract with Wapora, Inc.

    0  The  preparation of a Request for Proposal for a non-
      competitive procurement with Lockheed Missile and Space
      Co., Inc., for the further development of technology
      involving the micro-wave plasma detoxification of
      pesticides.
Branch Resources Become Dedicated to Procurement Activity


    0 The wide variety of activity illustrated above and the expec-
      tation of large-scale contracting under Superfund legislation
      led to a complete analysis of staffing needs in the area of
      procurement.   The growth in this area called for the involve-
      ment of a professional at the Section Chief level who have
      the expertise to handle complex, environmentally related
      contracts. Thus, the Contracts Management Section, mentioned
      above, was created as a means to address increasingly complex
      procurement problems.  Recruitment at the GS-13 level was
      begun late in the fiscal year and has been successfully
      completed.

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                              ~.€9-
OCCUPATIONAL HEALTH AND SAFETY
  Employee Medical Monitoring Program

  In conjunction with the Surveillance and Analysis Division,
  the Facilities and Administrative Management Branch concen-
  trated efforts on developing a Medical Monitoring program
  for employees who may be exposed to many hazardous and toxic
  substances.   After competitive bidding, an award was made to
  Mt. Sinai School of Medicine in New York City.

  Actual performance of the contract is being carried out by_
  doctors and  scientists of Mt. Sinai's Environmental Sciences
  Laboratory which is under the directorship of Irving J.
  Selikoff, M.D., who is nationaTTy renowned in the field of
  Occupational and Environmental Health.  The Environmental
  Sciences Laboratory has long been involved in all phases of
  scientific and medical problems that are posed by environ-
  mental and occupational exposure to toxic agents.  The Labora-
  tory is involved in environmental and occupation disease
  research.  It maintains the capability for analysis of both
  environmental and biologic samples in terms of the concentra-
  tions in animal tissues.

  Along this line, Mt. Sinai is particularly interested in the
  area of exposures to multiple toxic agents, unique among our
  EPA employees.

  The Scope of Work of this contract was based on our review
  of EPA guidelines with Regional modification which we felt
  would enhance a Medical Monitoring program. The Scope includes
  review of employee's medical and toxic exposure history,
  physical examinations, laboratory tests, review of tests and
  reports, follow-up consultations, and determinations as to
  whether or not any abnormal conditions which may be discovered
  are occ'upationally related. An important distinction between
  this program and others we have reviewed with EPA is that
  the contract with Mt.~~Sinai addresses the long range
  chronic effects of EPA occupational hazards, rather Than
  merely the acute effects addressed by others.

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                              -70-
Our program has been so - successful that the Headquarters
Environmental Response Team, which is located at Edison, has
already been included under this program.  It is also antici-
pated that the R&D components located at Edison will join
us.
GC/MS NOISE SURVEY

An area of activity to be noted here  is a question which
arose regarding possible hazardous noise levels in the new
GC/MS laboratory.  This problem arose as a result of the
Region's comprehensive employee medical monitoring program.
It was found, after a professional analysis by Bolt, Baranek,
and Newman, Inc., that harmful noise  levels are not present
in the Laboratory, but did show that  certain design changes
could be made in future labs that would contribute to employee
comfort and productivity.  An annual  noise survey is planned
for this laboratory to ensure that as the equipment ages,
noise levels do not increase to harmful levels.
DECONTAMINATION OF THE PESTICIDES LABORATORY AND DISPOSAL
OF HAZARDOUS WASTES

With the closing of the Pesticides Laboratory at 201 Varick
Street, New York City, Region  II was  faced with the problem of
disposing of a large quantity  of hazardous wastes and decon-
tamination of the laboratory to make  it  safe for other uses.
In conjunction with the Surveillance  and Analysis Division,
the Facilities and Administrative Management Branch ensured
proper disposal and decontamination under an ORD contract
with Rockwell International, Inc.  An analysis of pesticides
residues was conducted by our  Regional Laboratory which
showed that the laboratory  is  essentially free of pesticides.
These results enabled us to return this  space to GSA in a
hazard-free condition.

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                             -71-
                  ADMINISTRATIVE MANAGEMENT
In the  late fall of 1979, EPA faced difficult resource con-
straints,  particularly in the area of administrative services
and expanding contracting requirements in the Regional Office.
Since FAM staff were familiar with OMB Circular A-76, which
encourages contracting out commercial functions in the private
sector,  and had noted the emphasis EPA placed on contracting
out, the Branch developed a Scope of Work for various adminis-
trative  support services, including mail operations and
messenger service, motor vehicle management, maintenance and
operation of a duplicating system, and miscellaneous labor
services.

Using a rather untried concept applying the legislative
authority contained in the Javits Amendment to the Wagner O'Day
Act (Public Law 92-98, as amended), the FAM Branch sought to
apply the provisions of this Public Law, the goal of which is
to provide jobs for severely handicapped people and promote
their placement in industry.  The efforts which began in
December resulted in the issuance of a Request for Proposal
to the Federation of the Handicapped, a local non-profit
agency,  on June 3, 1980.  Actual contract performance began
on September 1, 1980.  The contract serves as a training and
job experiencefors¥ven handicapped individuals.

It should be noted that under the auspices of the Javits
Amendment to the Wagner O'Day Act, government agencies are
authorized to negotiate directly with local nonprofit agencies
for the handicapped.  Under the Act the President appoints
members to a Committee for Purchase from the Blind and Other
Severely Handicapped, which has designated the National
Industries for the Severely Handicapped (NISH), a central
non-profit agency as the coordinator for this program.  NISH
facilitates the establishment of Government contracts with
local handicapped agencies.  Since it is non-competitive in
nature,  a contract under this Act can be renegotiated each
year with the same nonprofit agency.

This resulted in these "first's" for EPA;

     1)   the first contract award under the authority of the
         Javits-Wagner-O*Day Act,

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                                -72-
     2)   the first demonstration project in a government agency
         for administrative support services that may soon be-
         come a model for joint government/rehabilitation
         facility cooperation for the mutual benefit of the
         entire handicapped community and government agencies.
WORD PROCESSING SURVEY

During the summer of 1980, the Facilities and Administrative
Management Branch conducted a word processing survey to
ascertain the nature of our requirements Regionwide so that
a word processing system could be designed to service the needs
of the Region as a whole.  The results indicated a critical
need for eleven additional word processors with varying
capabilites which were placed Regionwide.  The choice of equip-
ment was based on the specific needs of each division/branch
and the necessity for the Region to communicate with Head-
quarters through their new Lexitron word processing systems.
The installation of two models of Lexitron equipment has
greatly enhanced the capabilites of the Region in text editing
and word processing areas.
COPIER SURVEY

During the summer of 1980 a survey was also conducted to deter-
mine photocopying requirements in the Region.  Equipment
which was leased from GSA had proven to be obsolete, ineffi-
cient, and costly.  In September, new Xerox equipment was
installed on all floors occupied by EPA with automatic feed,
collating, stapling, and reduction capbilities.  It is antici-
pated that the new equipment will result  in $5,000 a month
in direct cost savings, with the added benefit of quicker
and better reproduction.

SPACE MANAGEMENT

A FY-1980 goal was to complete all space  moves which were re-
lated to the major Regional reorganization which had taken
place during the previous year.A continuing plan of renova-
tion, turnaround moves, and final relocations resulted in
completion in September.  This goal was realized after two
years of effort from conception of design to final construction.
These moves have helped to ease previously poorly designed
and cramped quarters and have provided better working conditions

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                           -73-
for Region II staff.  Additional space was also acquired
from GSA on the 4th and 7th floors to provide continued
expansion for EPA programs, in particular, RCRA and Uncontrolled
Hazardous Waste Site activities.
LIBRARY SERVICES

During this year the library continued to pursue an active out-
reach program to the public, in addition to providing research
assistance to Region II staff.  A highlight of the year was a
highly successful Toxics Information Seminar which included
presentations by national and regional EPA staff, industry and
public interest groups, and the National Technical Information
Service.   An audience of approximately 115 people attended.

In addition, the Regional Library provided advisory/consulta-
tive services to the environmental programs of Melbourne,
Australia; India; Venice, Italy; and Greece.
FY-81 GOALS AND OBJECTIVES
FACILITIES MANAGEMENT

   0  Development of an enhanced Scope of Work for the Opera-
      tions Contract which will includetheInitiation of
      activities to provide Laboratory and Field Auxiliary
      Services functions, such as, "bench-ready" glass-ware
      supplies,  maintenance of gas chromatograph/mass spectro-
      meter equipment, provision of safety operational services,
      and servicing and staging of self-contained breathing
      apparatus  (SCBA).

   0  Real property acquisition to enable the establishment
      of airborne support activities and development and
      staging of the Office of Research and Development
      hazardous  materials mobile support vehicles.

   0  Continuing implementation of the Master Plan via the
      Repair and Improvement Program (Phase II of the Sanitary
      Sewer System, completion of heating plant and electrical
      distribution design.)

   0  Completion of construction on the Electron Microscope
      Darkroom and HVAC Cooling Tower.

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                             -74-
   0   Completion  of  the  resurfacing  of  the  roof  for  Bay  F,
      Building  #209.     ~~         	

   0   Increasing  delegation of project  authority for Repair  and
      Improvement functions from Headquarters  Facilities and
      Support Services  Division in line with increasing
      Regional  capabilities.

   0   Cooperative Work-Training Program activities were  renewed
      this  year with  the New Jersey  Institute  of Technology
      in  an effort to supplement our engineering staff  staff
      capability.   It is hoped that  by  early 1981 we will
      have  an active  on-going program in the areas of
      mechanical,  electrical, and civil engineering.

CONTRACTS MANAGEMENT

   0   Obtaining an extended delegation  of authority  from
      Headquarters Procurement and Contracts Management
      Division.

   0   Participating  in  the  EPA program  for  Regional  contracting
      related to  Superfund  activity.

   0   Providing further  training to  Region  II  Project Officers
      on  contracting  procedures.

   0   Developing  a Contracts Management Guide  outlining  Regional
      responsibilities  and  procedures.

   0   Developing  emergency  contract  procedures to provide
      immediate supportin  lifethreatening situations.

OCCUPATIONAL HEALTH  AND SAFETY

   0   Expansion of the  Medical Monitoring Program to include
      employees at 26 Federal Plaza  and those  in R&D com-
      ponents .

   0   Changing  the Medical  Monitoring Program to provide on-
      site  examinations at  Edison, New  Jersey.

   0   Establishment  of  an employee preventive  health program
      and health  facility at Edison, New Jersey.

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      Development of a contract for continuing,  safe disposal
      of hazardous laboratory wastesT

      An analysis of the Region's methods of handling of
      toxic materials and development of Regional procedures
      in this area.
ADMINISTRATIVE MANAGEMENT

   0  Expansion of space for the Permits Administration and
      Information Systems Branches of the Planningand Manage-
      ment Division.

   0  Consolidation and expansion of space for the Enforcement
      Division.

   0  Support activities relating to the establishment of a
      field office in Buffalo, New York.

   0  Obtaining additional space from GSA to meet growing needs.

   0  Further development of procedures under the Administra-
      tive Support Services Contract to expand services
      provided.

   0  A telephone usage analysis to determine equipment require-
      ments with a view towards updating and reducing costs.

   0  A review of property functions for increased control and
      utilization.

   0  Development of standard programs for use with the Lexi-
      tron Records Management System for basic record-keeping
      functions such as driver license control, key control,
      procurement tracking, motor vehicle reports, and furni-
      ture inventory"!


   0  Public seminars conducted by the Regional Library featuring
      information resources in areas such as radiation,
      noise, and water supply.

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FINANCIAL MANAGEMENT BRANCH

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                              -76-
During FY 80 the Financial Management Branch  (FIN) placed
special emphasis on several key activities including cash
management, zero based budgeting and workload analysis, and
internal review and analysis of grant accounting and disburse-
ment functions.  In addition, FIN realized significant
accomplishments in maintaining a high level of accounting
productivity and accuracy, systems refinements and budgetary
reviews.

FIN's specific accomplishment and goals are presented below:

BUDGET AND REPORTING

Status of Allowances

    0  The summary below presents the status of operating
       funds at the end of FY 80.  From the total operating
       funds available to the Region for obligation and
       commitment without specific Agency or legislative
       stricture .05% remained unused on September 30, 1980.
       Achieving this obligation levelrequiredextensive
       and precise monitoring and analysis of our budget
       status.

       FY 80 Operating Allowance            $52,809,400
             Obligated                       52,328,015
             Committed                          206,100
             Balance Available                  275,285
             Funds with Program Restrictions    247,531

                 BALANCE OF UNUSED FUNDS         27,754
                                                 (.05%)

       FY 79                                      (.2%)

Construction Grant Funds

    0  For construction grants the total allowance
       available for obligation was $1,302,767,679 of
       which $740,948,746 was obligated.  The remaining
       $561,818,933 remains available for further
       obligation.

Buget Submission

    0  The FY 81 budget was prepared in  accordance with
       the Agency's Planning and Budgeting Manual.   The
       submission was prepared in two segments.   The
       June submission consisted of a highlight  statement,

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                             -77-


       resource allocation summary, individual program
       element plans without quarterly projections, change
       requests and projected program accomplishments.
       The August submission consisted of individual program
       element plans by quarter, based on revised targets
       and change request forms.

    0  This fiscal year, we were requested by the Deputy
       Assistant Administrator for Management and Agency
       Services, to perform a special analysis of two major
       decision units:   R551 Support Sevices and R557
       Administrative Management to determine ourFY 81
       requirements.  The result of our review indicated
       we were short $1,611,100 under Decision Unit R551
       and $41,400 under Decision Unit R557.  In our
       presentation, we prioritized all funding items for
       which we requested additional funds and provided
       documentation to support our request.  We received
       $925,000 under decision unit R551 Support Services.

    0  The FY 81 Presidential targets were insufficient
       to meet our fixed operating costs.  As a result,
       it was necessary to submit in October overtarget
       requests for payroll, contracts, interagency agree-
       ments and equipment as follows:

        - Fixed Payroll Costs                  $1,171,100
        - Contracts and Interagency Agreements  1,018,100
        - Equipment                               676,900
        - Funding for initiative supported by
           Headquarters' program office         1,242,100

                  Total overtarget requests    $4,108,200

Appropriation Structure

Starting in FY 80 Congress approved several changes
to the  EPA appropriation structure.  In prior fiscal
years,  we operated under four major operating
appropriations.  This fiscal year Congress authorized
only two appropriations as follows:

    0  Salaries and Expenses

       The Salaries and Expense appropriation was established
       to fund in-house requirements which were  included
       under the four major operating appropriations.
       This includes payroll compensation and benefits,
       traveTTTraining, equipment, regional support tunds
       and ADP contracts.

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                              -78-

    0   Abatement Control and Compliance

       This appropriation includes extramural requirements -
       primarily contracts, grants and interagency agreements
       which were previously included under the Enforcement
       and Abatement Control Appropriation.

In addition, the Budget Operations Division established
a crosswalk within each appropriation to provide guidance
as to  which Financial Management System (FMS) object
class  code could be charged against a particular RMIS
code.   (Resoure Management Information System).  This
has been very helpful to insure that obligations are
appropriately charged to the correct object class and
program element based on the planned budget.

Policy and Procedure Memorandums issued on the Control
of Allowances and Resources placed the following
restrictions on our FY 80 operating appropriation:

    0   Funds could not be transferred between appro-
       priations without approval by the Budget
       OperationsDivision at any amount.

    0   The level of central control within each
       appropriation is the media level.

    0   The House and Senate Appropriation's Sub-
       committee limited the transfer of resources
       between appropriation or the transfer between
       program (media) to no more than $250,000.  Any
       transfer of resources in excess of $250,000
       must be reported to the Congress prior to the
       implementation of such transfer.

    0   Allowance holders had the flexibility to transfer
       resources within media except where there were
       stipulations prohibiting these transfers.

Control Planning

In accordance with Policy and Procedure Memorandum |17 for
Extramural Procurement Plan Development and Implementation,
we developed and submitted our first FY 80 Annual Extramural
Procurement Plan for the Region.The plan was prepared in
two parts as follows:

    °   Part I represents Headquarters contract actions
       which will be submitted to the Procurement
       and Contracts Management Division (PCMD) for
       contract administration, review and processing

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                               -.79-
    0  Part II represents those  interagency  agreements  and
       contract actions which will  be  administered  in the
       Region II by Facilities and  Administrative Support
       Branch

The purpose of this plan is  to assure  an  efficient  procurement
process and serve as the basis for  effectively controlling
FY 80 commitments and obligations.

Program Grant Review

    0  A joint effort had been undertaken by  GRA and FIN
       to develop internal monitoring  and reporting pro-
       cedures to assure the timely receipt  and processing
       of financial status reports  (FSRs), final grant  audits
       and settlements of cash advances.  In  conjunction
       with this review the  Budget  and  Reporting section
       undertook an internal review to  determine which  program
       grants were currently fiscally  active  and those  which
       had no unpaid balances at the end  of  FY 79 and were
       pending fiscal audit  review.

    0  Our review included the following  considerations:

        - verification of unpaid balances
        - correction of grant documents numbers
        - ensuring uniformity of'grant  names
        - establishment of separate files for active
          and inactive grants and confirmation of
          receipt of Financial Status Reports (FRS)
          for those grants whose budget period
          had expired.

    0  In those areas where we were missing FSRs or a
       deoblig'ation action was required as a  result of
       final cost reports, we requested GRA to take  the
       necessary action to close out the  grants.   In the
       future we will review the status of all program
       grants on a quarterly basis  and  take advantage of
       any available balance under  the  grant  for future
       obligations.

ACCOUNTING OPERATIONS

Productivity

FY 80 Accounting Section productivity statistics for our
key activity indicators are as follows:

    0  Invoice Volume - 10,450 invoices were  processed
       requiring 1,250 U.S. Treasury Schedules amounting
       to net disbursements of $668,969.176.93.

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                           -80-


    °  Travel Vouchers processed exceeded 260 per month
       or approximately 3 100 for the fiscal year.

    0  Obligations processed exceeded 260 per month or
       approximately 3,100 for the fiscal"year.

    0  Obligations processed exceeded 12,500 and amounted
       to approximately $766,336,928.63.

    0  Transaction Volume exceeded 40,000 line items of
       input to the EPA Commitment Accounting System, or
       a monthly average in excess of 3,300 transactions.

Quality Control

Throughout the year Headquarter's Financial Management
Division monitored the  realiability,  timeliness and integrity
of data generated by the financial management system and
issued quarterly reports on quality control and internal
review.  In the final September 1980  report, Region II ranked
exceptionally high as indicated below:

    0  Transaction Accuracy Rate  - Region II achieved the
       Agency's highest accuracy  rate of 99.8%.  The
       Agency's average accuracy  rate was 95.9% with a
       low of 84.6%.

       Region II's total transaction  volume for FY 1980
       exceeded 40,000  records with only 80 rejected
       transactions.

    0  Accounts Receivable - Headquarter's review of
       accounts receivable balances in the Agency's
       general ledger and subsidiary  ledgers indicated
       vast discrepancies for most regional offices.
       Region II however,  was one of  three regional
       offices for which no discrepancies were reflected.

    0  Prepaid Expense  Account -  Balances in this account
       represent differences between  payments reported
       to the U.S.  Treasury on the SF 224, Statement of
       Transactions,  and payments posted into the
       accounting system.   We are pleased to report that
       Region II is the only office with a zero balance
       in this account.  Other offices  reflected  an
       average balance  of more than $1  million with an
       Agency high balance of $12 million.

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                          -81-
Cash Management

During FY 80 FIN made significant achievements in the area
of cash management, and we would like to highlight the following
accomplishments:

    0  Accounts Receivable

       With continued emphasis being placed on strong cash
       management practices special efforts were devoted
       to our accounts receivable activity.  Billings and
       collections for FY 80 far exceeded FY 79 levels in
       both number of billings issued and total dollar
       volume.   An analysis of FY 79/80 accounts receivable
       activity is as follows:

                                FY 79            FY 80

       Beginning Balance    $ 33,405.27   $    15,711.53
       Billings              108,907.14     1,159,161.64
       Collections          (129,600.88)     (561,796.85)
       Outstanding Balance  $ 12,711.53   $   610,076.29

       During FY 80 FIN issued 119 bills for collection in
       comparison to 42 bills for collection issued during
       FY 79.  This substantial increase is attributed to
       accounts receivable activity in the areas of Reim-
       bursable Billings, IPA Payroll Costs, and Construction
       Grant Audit Exceptions.  An analysis of the FY 80
       outstanding balancesTs summarized below by general
       ledger account:

       General  Ledger       Description             Amount
          Account

           110.1      Reimbursement, Federal!     $256,882.40
           111.1      Reimbursement, Non-Federal    35,715.00
           110.9      Reimbursements, Unbilled       6,688.23
           110.2      Refunds, Federal               5,548.72
           111.2      Refunds, Non-Federal2        305,241.94
                                                  $610,076.29

       1)  Includes Federal Emergency Management Assistance
           and  Coast Guard reimbursement

       2)  general adjustments for overpayments to vendors,
           disallowed costs for grantees as defined through
           audits, et al

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                  -82-
Program Grant Financing                        ^

0  Cash Advances  - A review of outstanding program
   grant advances was undertaken to determine their
   validity and liquidate or reduce excess advance
   balances where possible.  During the third quarter
   of the fiscal year alone, outstanding advances to
   grantees were reduced by more than $300,000.

0  Letter of Credit - during FY 1980 we continued
   efforts to effectively monitor grantee letter of
   credit practices.  FIN participated in a U.S.
   Treasury survey which required the completion of
   Status of Federal Funds Reports for Letter of
   Credit Nos. 68-13-0200, New Jersey Department of
   Environmental Protection and 68-13-0202, Virgin
   Islands Department of Conservation and Cultural
   Affairs.  These reports are an invaluable tool
   of the U.S. Treasury in monitoring grantee drawdown
   and disbursement practices.

   We were also visited by Mr. Miguel Farrington of
   the Virgin Islands Department of Conservation and
   Cultural Affairs.  The main purpose of Mr. Farrington's
   visit was to discuss their responsibilities as a
   grantee on letter of credit and to ensure their '
   recordkeeping and reporting practices promoted
   effective control and monitoring over their letter of
   credit activities.  To assist the Virgin Islands,  we
   provided them with copies of the letter of credit
   history record and summary forms utilized by our office.

Travel Advances

Each fiscal year end FIN issues procedures for the
recoupment of outstanding travel advances held under
the authority of blanket travel ordes.

At the end of August 1980, outstanding travel advances
exceeded $70,000.  During the month of September however,
approximately $40,000 was collected representing a_
recoupment of more than 55% of the August 1980 balance.

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                           -83-
       An analysis of FY 80 travel advance activity as*of
       September 30,  1980 is as follows:

       Total Advances Issued                      $321,258.22
       Less:  Recoupments        $234,379.93
              Repayments           41,442.06        275,821.99
       Total Outstanding Advances                 $ 45,436.23

    0   Imprest Fund Closeout

       As a result of closing  the Rochester Field  Office, FIN
       took immediate action to cancel  the Rochester Imprest
       Fund.  This entailed securing  a  final  no-check reimburse-
       ment voucher from the Rochester  Office which was forwarded
       through FIN to the HQ's Policies and Procedures Branch for
       follow-up action  with U.S.  Treasury.   The  Rochester Field
       Office maintained an imprest fund  of $100.

ANALYSES AND REVIEWS

Construction Grants

    0   In the past, FIN  continually received  50%  to 75% of
       a single month's  construction  grant payment requests
       within a few days prior to the month end payment
       cutoff.  Following an analysis of  the  pattern of
       receipt of construction grant  payment  requests and
       a review of existing procedures, FIN developed a
       series of guidelines and suggestions for streamlining
       the processing of these payments.These guidelines
       were discussed with personnel  from the Grants Admin-
       istration Branch  and resulted  in improved  and more
       timely processing of construction  grant payment requests.

    0   A detailed outlay history report on selected con-
       struction grants  was prepared  by FIN to assist the
       Office of Management and Budget  in evaluating the
       impact of grant amendments on  construction  grant outlay
       patterns.  This report  included  ten grants  with an
       initial award  exceeding $1,000,000. Outlays were
       reported by fiscal year, from FY 73 thru FY 80.

Program Grants

    0   During FY 80 a considerable amount of  effort was devoted
       to reviewing current practices in accounting for program
       grant activity as a result of researching  various dis-
       crepancies that were detected in our program grant files.

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                         -84-
   After meeting with GRA staff specific procedures were
   developed  to effectively and accurately account for and
   monitor our  program grant activity-   Specific areas
   requiring  attention included the  following:

   0  Receipt and follow-up of  Financial Status  Reports (FSR).
   0  Accounting for  unliquidated  or  unpaid obligations.
   0  Timing  of amendments  for  deobligation and/or carryover
      of unobligated  balances.
   0  Accounting for  grants with multiple  programs and/or
      multiple  budget periods.
   0  Reporting and drawdown requirements  for  grantees on
      an advance payment  basis.

Letter of Credit

   0  A review  of our letter of credit  files was performed to
      ensure  that complete  and  accurate  letter of credit history
      data was  maintained fof~ each letter  of credit grantee.
      This included revising existing letter of  credit history
      records to include  cumulative  information  on total amounts
      authorized, total drawdowns  and balances available.

      In addition, detailed records were established for indivi-
      dual grants within  a  single  letter of credit and a letter
      of credit summary form was developed to  reflect detailed
      and cumulative  information on all  letter of credit amend-
      ments issued.

Specific Purchase Orders

   0  A review  of open specific purchase orders  was undertaken
      in an effort to expedite  payment  on all  prior year accounts.
      After extensive research  and examination of obligating
      documents, receiving  reports and  invoices  from FY 73 to
      FY 79 we  were able  to process over 200 prior year invoices
      for payment.  As a  result of this review,  FIN met with
      Facilities and  Administrative  Management Branch personnel
      established more effective procedures to assure timely and
      accurate  processing of open  specific purchase orders,
      undelivered items and outstanding receiving reports.

Disbursement  Activity

   0  In an attempt  to resolve  some  of  the problems encountered
      with disbursing activity  at  month end, FIN developed a
      process whereby current month  Treasury schedules would be
      prepared  immediately after the  prior month's payment cutoff

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                            -85-



       date.   This method provided us with an additional 7 to 8
       days for processing payment schedules in lieu of'postponing
       schedule processing until the  first workday of the current
       month.

ACCOUNTING  SYSTEMS

The following  is a summary of  systems accomplishments during
FY 80:

    0   In March 1980,  for the  first time  in FIN history,  all
       month end closeout activity was completed by the  1st
       workday of the  succeeding month.   In addition,  all
       Headquarter's month end reports were accessed and  re-
       ceived  by the 3rd  workday of the month.   Special
       acknowledgement was received from  Marcus Pugh,  Director,
       Headquarter's Financial Management Division,  for  FIN's
       outstanding efforts in mid-year closing.

    0   Additional reports were developed  which  facilitated
       the  permit application  fee  suspense  account  reclassifi-
       cation  process.  These reports consisted of  one report
       for  original and second round  permits  that have been
       issued  and a second report  listing non-issued permits.
       In the  past the reclassification process was  extremely
       time consuming  and tedious  and involved  the  review of
       the  Status of Permit Development Report  containing more
       than 12,500 permit records  dating  back to FY  71.

    0   The  SF-224 Appropriation  Master File update  program  was
       modified to allow  for file  updating  when the  cumulative
       SF-224  report is requested.  In addition, this  program
       automatically generates the Cash Reconciliation and
       General Ledger  Reconciliation  Reports  eliminating  the
       need _.for separate  report  requests.

    0   The  SF-224 Appropriation  Master File and the  Construction
       and  Program Grant  Master  Files have  been modified  to
       include processed  dates for all transactions  input.   This
       change  allows for  proper  reporting of  prior  month  actions
       or adjustments  that are processed  in the current month.

    0   The  Document Control Edit which numbers,  identifiers,
       for  all accounting documents,  was  modified  to edit batch
       control data.   This includes a listing of all batches
       input and  associated errors detected in  the  total  card
       count or dollar amount  for  each batch.

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                             -86-


    0  Effective pay period No. 16, ending May 3,  1980, Region II
       began producing employee payroll statements locally for
       all designated agents whose time and attendance cards are
       processed by our office.

    0  A new computer program was developed to automatically gen-
       erate construction grant accounts payable records and
       reversal entries.This operation eliminated the manual
       coding and reversal of approximately 150 transactions each
       month.

    0  The program grants unpaid report was modified to list
       grant detail by project number in lieu of program
       activity.   This format facilitates data research and
       provides for an easy cross-reference to Headquarter's
       unpaid reports.

FY 81 GOALS AND OBJECTIVES

Budget & Reporting

    0  Develop new program grant reports in conjunction with
       GRA on Status of Program Grant Funds for funding allo-
       cations, commitments,  obligations and payments.

    0  Train New York State and New Jersey State employees on
       the procedures to  be followed in the area of commitments,
       obligations, allocation of funds, payments  and reconcil-
       iations of State records to EPA Region II FIN accounting
       records in the administration of the EPA/State Delegation
       Agreement under 205(g).

    0  Conduct indepth periodic financial reviews  to insure
       that funds are being obligated in accordance with our
       budget forecasts in the following areas:

       0  payroll and overtime
       0  travel
       0  extramural funding  for contracts and
          interagency agreements
       0  Regional support fund

Accounting

    0  Increased activity in Cash Management practices in include

       0  more timely billings, collections and deposits,
       o  payment of invoices when due,

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                             -87-
          taking  advantage  of all  discounts  and  accounting
          for  discounts  lost,
       0   more  efficient monitoring  of  cash  advances  to
          grantees,  and                   "~~
       °   analysis of  program grants in line  with  new Letter
          of Credit  eligibility  requirements.

       Continue comprehensive  training  programs  in the areas  of
       payroll, travel and  timekeeping  for both  supervisors and
       staff employees and  perform selected  audits and field
       office  visits to  improve  procedures and insure that they
       are properly  implemented.

       An  indepth review of  the  designated agent functions
       within  the Region will  also be conducted.

       Achieve  further streamlining  of  our payment procedures,
       document posting  and  coding techniques through the use
       of  a PDF 11/70  mini-computer  and  related  CRT devices.

       Certain  applications  will include  the  elimination of
       payment  transaction  coding  and document posting to the
       vendor  registers,  and  automated  payment scheduling.

       Continuation  of our  cost  reduction program  for major
       cost categories in conjunction with the Facilities &
       Administrative  Support  Branch.

       Increase efforts  in  records management to complete
       review  of  FIN's payment voucher  files  for FY 79 and
       prior fiscal  years to ensure  proper accounting of
       all records and subsequent  retirement  ot  the Federal
       Records  Center.

       Continue efforts  with the Facilities  & Administrative
       Management branch to  review Regional  contract  procedures
       and participate in the  issuance  of a  Regional  Contracts
       Management Manual.
Systems
       Work with  the  Information  Systems  Branch  to provide
       support  background  needed  to  finalize  accounting and
       systems  specifications  for the  direct  data entry system
       now that the  PDF 11/70  mini-computer and  related CRT
       devices  are  available  and  operational.  (Includes
       vendors  register,  treasury payment schedules,  data
       input  and  editing,  etc.)

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                     -88-
Implementation of a new travel obligation monitoring
system which will be extremely helpful in monitoring
Regional travel activity and will offer program managers
complete information on all travel obligations incurred
by individual staff members.

Complete overhaul of the financial management card edit
program to ensure that a high level of data accuracy is
maintained.

Expansion of the General Ledger Master File to include
all general  ledger accounts necessary for the development
of a regional General Ledger Trial Balance Report.

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