United btates
           Environmental Protection
                     May 1982
Annual Report
to the President

The Protection of
Our Environment

Anne M. Gorsuch

The Honorable
Ronald Reagan
The White House
Washington, D. C.
Dear Mr. President:

This month marks the com-
pletion of my first year serving
as your Administrator of the
U.S. Environmental Protection
Agency. This report sum-
marizes some of the major
efforts and accomplishments
during that time to  further the
mission for which the Agency
was founded: the  protection  of
our environment, and to do so
within the framework of the
initiatives of your Administra-
tion—regulatory reform, better
science, state and local in-
volvement, and improved,
more efficient management.
With your enthusiastic support,
EPA has made progress in
pursuing  its critically important
   Significant environmental
gains have been registered in
the following broad and
important categories:

The Health  of Our  Citizens.
First and foremost, EPA is
pledged to safeguarding the
health and welfare of the
American  people and the pro-
tection of  their environment.
Our reforms, in all instances,
hone true to that objective.
Improved  efficiency at EPA
translates directly  into better
environmental protection.

Better Science.    Sound en-
vironmental regulation  can
only be as good as the scienti-
fic foundation upon which it is
based. The Agency frequently
finds itself at the frontier of
health-related research,  in an
ongoing effort to  determine
the risks to humans  posed by
synthetic substances and waste
products.  To assure the best
possible scientific information,
EPA has undertaken a number
of reforms in the area of
research and development.
Regulatory Reform.  Regulatory
reform is one of the major
pillars of your economic re-
covery program and an area in
which EPA is making a sub-
stantial contribution. The
Agency has actively been re-
viewing its entire body of
regulations to eliminate need-
less red tape. The result of this
effort conservatively will
add up to a  savings of
$6 to  7  billion as a result of
our first  year's work.
Elimination of Backlogs.    One
of the most immediate and
pressing tasks confronted upon
taking charge of EPA was the
elimination of costly, time-
consuming delays as the
Agency ground down under the
weight of its own backlog of
paperwork. With the adoption
of procedural reforms and
more businesslike management
structures, all backlogs have
been addressed and many have
been drastically reduced.
State  Partnerships.   We  are
strengthening positive working
relationships with state and
local governments. The major
laws EPA administers provide
for delegation of key program
responsibilities to the States,
should they decide to accept.
In accordance with your
philosophy of New Federalism,
we want to make sure that the
responsibilities  transferred  are
substantive, and not token.
Improved Management. Finally,
we are improving the basic
organizational structure of the
Agency.  We  have  initiated re-
forms that promise to produce
a more streamlined organiza-
tion—one that will  be more
responsive in delivering the
highest quality environmental
protection at  the lowest practi-
cal public expenditure.
  Such innovations in environ-
mental protection are a tradi-
tional Republican mainstay.
EPA was founded under a
Republican Administration.
Seven of its 11 years of
existence have  been under
GOP leadership, and the cause
of national conservation goes
back to President Theodore
Roosevelt, a Republican. This
Administration carries  forward
that tradition. I am confident
that the quality of America's
land, air and water will be
better for our efforts.
  We  have only made a  start
in this first year, but it is  a
start in which we take pride.
         Anne M.  Gorsuch

         May 1982

The creation of the U.S. En-
vironmental  Protection Agency
("EPA") on  December 2,
1970, was the product of an
effort to streamline the Federal
Government  and a desire to
respond positively to the en-
vironmental  concerns  of the
   PriortoEPA.the Federal Gov-
ernment's environmental con-
trol functions had been spread
across several federal  depart-
ments and agencies, including
Interior, Agriculture, Health,
Education and Welfare, and
the Atomic Energy Commis-
sion. Fifteen programs were
brought together to make up
the new Agency, which began
with a Fiscal Year 1971 oper-
ating budget of  $303  million
and 7,198 permanent
employees. Today EPA's
operating budget is approxi-
mately $1.3 billion  and  em-
ploys just under 10,000  perma-
nent employees.
   EPA is charged with pro-
tecting the nation's environ-
ment by:

•  administering laws passed
by Congress,

•  ensuring compliance with
those laws, and

•  performing research to  sup-
port its activities.
  EPA is responsible for en-
suring compliance with these
laws and is committed to a
vigorous enforcement program.
The Agency's enforcement
philosophy is to encourage
voluntary compliance by com-
munities and private industry,
but to adopt a firm  posture
where cooperation is not forth-
coming. Most laws adminis-
tered by EPA contemplate a
partnership with States to
perform direct enforcement
activities needed to  meet en-
vironmental standards.  States
now shoulder a substantial
share of this enforcement
  The major laws administered
 by EPA include:

 • Clean Water Act, as
 amended, is the basic authority
 for water pollution control
 programs. The goal of the Act
 is to make national waters
 fishable and swimmable.

 • Safe Drinking Water Act, as
 amended in 1977,  permits
 EPA to regulate the quality of
 water  in public drinking  water
 systems and the disposal of
 wastes into  injection wells.

 • The Resource Conservation
 and Recovery Act of 1976
 ("RCRA") authorizes  EPA to
 establish regulations and pro-
 grams to ensure safe waste
 treatment and  disposal.

 • Federal Insecticide, Fungi-
 cide and Rodenticide Act
 ("FIFRA"),  as amended,  di-
 rects EPA to regulate  the
 manufacture, distribution, and
 use of pesticides and  conduct
   Science provides much of
 the base for environmental
 protection. EPA's research ac-
 tivities span the spectrum of
 research interests: developing
 and standardizing techniques
 to detect pollutants; assessing
 their  impact on human health
 and the environment; develop-
 ing and evaluating techniques
 for pollution control; and trans-
 ferring information to the
   These functions constitute
 the principal work of EPA. Its
 activities enter into nearly
 every aspect of daily life,  just
 as the environment it protects
 affects  all Americans, as well
 as citizens of our neighboring
research into their health and
environmental  effects.

•  Toxic Substances Control
Act of 1976 ("TSCA"), pro-
vides authority to regulate  the
manufacture, distribution and
use of chemical substances.

•  Clean Air Act, as amended
in 1977, provides the basic
legal  authority for the nation's
air pollution control programs,
and is designed to enhance the
quality of air resources.         I

•  Comprehensive Environ-      )
mental Response, Compensa-    I
tion and Liability Act of 1980
("Superfund") establishes a     |
program to deal with release of
hazardous substances in spills
and from inactive and
abandoned disposal sites.

•  Marine Protection, Re-
search,  and Sanctuaries Act of
1972  permits EPA  to  protect
the oceans from the indiscrimi-
nate  dumping of waste.

The Health
of  Our Citizens
Of all the tasks, large and
mundane, for which EPA is
responsible, the overriding
goal is the protection of the
physical health of the Ameri-
can people.  Every program ad-
ministered by the Agency
directly affects the air we
breathe, the  food we eat, the
water we drink and swim in,
and the land on which we live
—in short, all those things
which  directly affect human
  The Agency takes pride in
the  substantial progress which
has been made during the past
year toward  making our world
a healthier, and therefore more
pleasant one in which to live.
  Some of the Agency's most
notable accomplishments can
be found in  the actions EPA
has taken in response to the
health threats posed by dis-
posal of pollutants, including
hazardous waste.  Under the
Resource Conservation and
Recovery Act ( RCRA):

• The almost 58,000 generat-
ors  of hazardous wastes are
now required to properly
identify these wastes, ensure
they are sent to legitimate
hazardous waste management
facilities, properly package and
label them, and maintain vital
records of the amounts, types,
and ultimate disposition of
these materials.

• Over 14,000 transporters of
hazardous wastes are required
to comply with a manifest
system to ensure that ship-
ments are sent to and received
by legitimate hazardous waste
management facilities.

• Almost 10,000 hazardous
waste facilities are now regis-
tered with  EPA.  To  determine
if these facilities are meeting
EPA's standards, over 2,000
inspections have been carried
out by EPA Regional personnel.

•  Over half the states have
been authorized to  carry out
their own hazardous waste
programs on an interim basis.

   As part of EPA's efforts to
administer RCRA, EPA had, by
March  1982:

•  Issued compliance orders at
300 facilities, with penalties in
appropriate cases.

•  Filed 62 civil actions in
Federal court.

   One  of EPA's priorities in
1981 was also its newest duty:
to administer the Superfund
program which was enacted by
Congress in December 1980
to deal with the release of
hazardous substances in spills
and from inactive and
abandoned disposal sites.
   To implement Superfund,
EPA first had to establish an
effective  organizational  sys-
tem. To this end, the Agency:

•  Supervised the merging of
the RCRA and Superfund pro-
grams under a  newly establish-
ed Assistant Administrator for
Solid Waste and Emergency

•  Began new  accounting pro-
cedures to ensure proper fund

•  Instituted a  Superfund com-
munity relations program to
promote  the local support that
is crucial to achieving Super-
fund's  goals.

   Under  Superfund, EPA can
take either  removal or remedial
action. Removal actions  are
short-term or emergency in
nature, similar to those under-
taken to  clean  up accidental
spills of oil and hazardous sub-
stances. To date, EPA has
authorized $20.8 million for
removal actions at 61 loca-
  The  remedial program is
intended to clean up problem
hazardous waste sites. By April
1982, the Agency had:

• Allocated over $45 million
for cleanup at 48 sites.

• Compiled and published  (in
October 1981) an Interim
Priority List of 11 5 sites.
Depending on current circum-
stances at each site, funds are
available and clean-up work
can begin.

  EPA revised the National  Oil
and Hazardous Substance
Response Plan to reflect and
implement the new authorities
under  the  Superfund legisla-
tion. In addition to streamlin-
ing  the existing oil response
mechanism  under the Clean
Water  Act,  the new plan sets
out the criteria  and procedures
for using Superfund money to
respond to hazardous sub-
stance spills and  sites. The re-
vision is the cornerstone of the

                                                               Superfund's 115 top
                                                               priority hazardous
                                                               waste sites
Superfund program and is
written in the spirit of regu-
latory reform. The  provisions
are concise, its  language is
nontechnical and the require-
ments are flexible.  In addition,
the plan establishes a strong
federal-state partnership for
implementing the Superfund
   Hazardous waste sites are
evaluated by  state and EPA
personnel, including Field In-
vestigation Teams stationed at
EPA Regional Offices. Staffed
under contract by 180 trained
professionals with a breadth of
technical skills, the teams car-
ried out 2,347 preliminary
assessments, 1,769 site in-
spections, and 279 field
investigations during 1 981.
   Making the most out of the
limited monies in  Superfund
requires that every effort be
made to have any private
parties  responsible for a site,
manage and finance its clean-
   The Superfund legislation
authorizes judicial and ad-
ministrative action to compel
responsible  parties to under-
take cleanup.  Where  use of
these mechanisms does not
abate hazards, the Agency will
proceed with remedial actions
and is empowered to seek
recovery of all the funds ex-
pended.  EPA  established a
task force in February  1982  to
notify as many responsible
parties  as had then been
identified of their potential
liability should fund monies be
used  at sites with which they
were  associated. EPA believes
these communications give  a
clearer  picture of whether pre-
litigation private-party cleanup,
administrative or judicial
orders to compel clean-up, or
fund-response with cost-
recovery, would be appropriate
at individual sites. As of April
1982, EPA had:

•  Issued notice  letters to over
850 individuals  or firms at 75
sites on the list.
•  Issued notice letters to 29
responsible parties at 7 sites
not on the list.

   While Superfund and the re-
lated solid waste clean-up
activities received considerable
publicity in 1981,  there were
other less publicized, but none-
theless important, activities
taken by EPA to help protect
the health of our citizens.

•  EPA set in place a coordi-
nated  fish  monitoring strategy
to determine  levels of toxic
contamination in the Great
Lakes, and surveyed sediments
in 17 harbors and  river mouths
on the Great Lakes to deter-
mine toxic sources  and

•  EPA prepared eight health
advisory documents to inform
state authorities and water fa-
cility operators of health  risks
posed by unfamiliar contami-
nants. These  include toxicolo-
gical information as well  as
monitoring and  removal

•  EPA initiated the review of
ocean dumping regulations to
assess the comparative risks of
land versus ocean disposal.

•  To protect our water, EPA
conducted 110 on-scene  oil
response actions, monitored
over 5,000 removals, com-
pleted over 2,000 spill preven-
tion inspections and  conducted
25 damage assessments.

•  Final  standards for disposal
of Uranium Mill Tailings at in-
active sites are complete.

•  In EPA's toxics program,
actions are being taken to ob-
tain more testing data when
valid concerns about new
chemicals are raised. EPA
banned importation  of two
new potentially dangerous
chemicals pending submission
of additional data.

•  Emphasis has been placed
on finding acceptable PCB  dis-
posal methods. Two  high-
temperature commercial in-
cinerators for PCBs  have been
approved, as well as  incinera-
tion aboard the ship Vulcanus.
EPA also has approved two
chemical destruction processes
which reduce PCBs to easily
disposable substances and
allow the residual oil to be
cleaned and reused.

•  In January 1982, the U.S.,
including  two EPA representa-
tives, participated in  an inter-
national meeting of experts
concerning protection of
stratospheric ozone.  Further
cooperation is anticipated in
this area.

•  EPA has released  a long-
awaited study of environment-
al pollution in the Niagara
frontier which affects both the
U.S. and Canada. This com-
prehensive review reveals that
substantial progress  has been
made in controlling  many of
the water  contamination prob-
lems in the Niagara frontier.
EPA is undertaking additional
actions to provide further
assistance in the area,

•  Both the Administrator  and
Deputy Administrator have
been personally involved in
high-level and technical meet-
ings with Mexican officials to
further U.S.-Mexican coopera-
tion on environmental issues
and  to  develop new ap-
proaches  to the existing air
and water pollution problems.

EPA's new administration
firmly believes that there can-
not be good  regulation without
good science. Without ade-
quate scientific understanding,
steps necessary for the protec-
tion  of human health might
never be taken and, converse-
ly, wholly unnecessary regula-
tions might  be foisted  upon
the public. To avoid these pit-
falls, EPA is taking steps to
improve the scientific basis of
its regulations, including
selecting 15 to 25 rule pro-
posals each year for special
review by its Science Advisory
  Other activities to produce
better scientific  and technical
understanding include:

• Insisting that any proposed
regulation whose rationale de-
pends on scientific assump-
tions undergo a thorough peer
review by knowledgeable
scientists  to  test the validity
of those assumptions; and

• The production of certain
Air Quality Criteria documents
that serve as the primary
scientific basis for the estab-
lishment  or  revision of nation-
al ambient air quality  stand-
ards under the Clean Air Act:
CO  (Carbon Monoxide),  No,
(Nitrogen  Oxides), HC (Hydro-
carbons),  SO./PM (Sulfur
Oxides and Paniculate

  Comprehensive health as-
sessments are near completion
for seven chemical solvents:
Carbon Tetrachloride,  Methyl
Chloroform,  Methylene Chlo-
ride, Chloroflurocarbon 113,
Tetrachloroethylene, Trichloro-
ethylene, and Toluene. This
information will be submitted
to the Science Advisory Board
for  public and peer review.
This is the first time EPA has
prepared a single document
which addresses the varied
scientific health assessment
needs of EPA's many regu-
latory programs.
   Several projects  (which in-
fluence the Agency's approach
to health and risk assessment)
are in varying stages of com-

•  Exposure assessment guide-
lines have been developed for
Agency-wide use.

•  Guidelines for mutagenicity
risk assessment have been re-
viewed and are being revised
based on the public comments.
They will receive peer review
by the Science Advisory Board.

•  Guidelines for risk assess-
ments on reproductive toxicity
are under development. A
workshop has been success-
fully completed and proceed-
ings have been published.
Notably, this workshop in-
cluded prominent academic
and industry scientists and is
a cornerstone for the continued
development of the Agency's
reproductive toxicity guide-

   These projects serve to
bring  uniformity  and consist-
ency to future Agency risk
assessment activities. The peer
and public reviews  afford in-
creased opportunity for indus-
try and academic involvement
in  the development of the risk
assessment process.
   Further steps toward better
science  include the following:

•  EPA sponsored an Inter-
national Hazardous Waste
Symposium  in  October 1981.
The Symposium contributed
significantly to advancing
world-wide knowledge of
proper methods for dealing
with the hazardous waste dis-
posal problem.

•  EPA participated in the Or-
ganization for Economic Co-
operation and Development
("OECD") Chemicals Program.
In  June  1981, the OECD Coun-
cil reached an agreement bind-
ing on member countries that
test data on chemicals
produced in one country will
be accepted as valid in  all
others for assessment  pur-

•  Under the U.S.-Canada
Memorandum of Intent on
Transboundary Air Pollution,
five bilateral work groups un-
der EPA chairmanship  are pro-
viding technical support for the
negotiations. The final techni-
cal reports will assist the
Administration in its negotia-
tions and  in  the resolution of
major scientific uncertainties
concerning acid precipitation.

•  EPA  completed analysis  of
14 chemicals  leading  to the
development of water quality
criteria  documents;  initiated
research on the toxic effects of
some organic compounds; and
gathered additional scientific
data to revise criteria docu-
ments for the 65 water  pol-
lutants which will form  the
basis for the development of
water quality standards.

When the Reagan Administra-
tion took over EPA manage-
ment, it found that success  in
protecting the environment
appeared  to  be measured  by
the ever-increasing amounts of
tax dollars being spent on
producing regulations. A pro-
gram of vigorous regulatory
reform and relief was clearly
necessary. The Agency's po-
tential to provide regulatory
relief to the American
economy amounts to as much
as  $6-7 billion in direct costs.
Within this opportunity, top
Agency management had two

•  To focus  on activities  that
would produce significant en-
vironmental protection without
stifling economic growth; and

•  To revise existing regula-
tions to provide industries  and
states greater flexibility in
meeting our nation's environ-
mental goals.

   Since  beginning  its regu-
latory reform program, EPA
has produced significant pay-
offs. Without compromising its
responsibility to protect the
environment,  EPA has suc-
cessfully implemented the
following  regulatory  reform
and relief measures:

•  EPA responded to the Presi-
dent's request for regulatory
relief for the  auto industry by
announcing the Agency's  in-
tent to change several  regu-
latory requirements.  As a
result,  air quality protection  is
being achieved at a greatly
reduced  regulatory  cost bur-
den. Relief measures taken
include:  consolidating the  CO
and NO.  waiver proceedings;
assuring adequate time to meet
regulatory requirements; al-
lowing manufacturers to self-
certify high-altitude vehicles
and forego assembly-line  test-
ing at  high altitude; reducing
the number of annual assem-
bly-line tests; streamlining the
preproduction testing program;
deciding not to  pursue on-
board controls for refueling
hydrocarbon emissions, and
deferring the 1983  truck noise
standard to 1986. These initia-
tives, and others planned to be
taken,  should save manufac-
turers and consumers more
than $4 billion over the next
five years.

•  EPA has made progress on
paperwork  reduction. In Octo-
ber 1981, the Agency  com-
pleted an inventory  of its
information collection activi-
ties, and for the first time, now
has a complete  information
collection budget linked to  its
fiscal budget.  In specific
program areas,  improvement
has been  dramatic. For
example, reporting burdens
under  RCRA  have been re-
duced by about 3 million hours
without affecting program

•  The Agency established a
small  business ombudsman in
EPA's  Office of Policy Analysis
to help small businesses that
experience difficulties in
meeting or understanding
regulatory requirements.

•  EPA is aggressively moving
to expand the  cost savings
from emissions trading. The
best known example of
emissions trading is the use
of "bubble" trades—so named
because a  firm is allowed to
place an imaginary bubble over
all its sources of air pollution
at a particular site and develop
its own alternative for reduc-
ing air pollution to the total
amount allowed under the
bubble. These trades can be
accomplished within a plant or
firm or by transactions among
    To date, 19 air "bubbles"
have been approved by EPA.
These will save industry
approximately $40 million.
At least 90 others are under
development and could pro-
duce  savings  of $200 million.
In addition, the  adoption of
generic emissions trading rules
by many states will produce
greater reliance  on the trading
process  and  is expected to
produce savings of nearly
$1  billion.

•  EPA has reduced the time it
takes for the Agency to act on
State Implementation Plan
(SIP) revisions through new
processing techniques that in-
clude  conducting  administra-
tive procedures in parallel with
the state. EPA now comments
on proposed  SIPs concurrently
with the state's public com-
ment period  (instead of  after).
The improved techniques have
resulted in a  savings of up to
70%  over  the previous aver-
age time.

•  EPA's toxics program is en-
couraging negotiated testing
agreements as substitutes for
rulemaking, to allow appro-
priate and  necessary testing to
begin  earlier and test data to
be generated more quickly.

 •  Similarly,  the  Agency's tox-
ics program is issuing test
methodologies as guidelines
rather than as requirements.
This provides greater flexibility
as well as the ability to take
advantage of the latest test

•  Progress has been made in
overhauling the much criticized
and expensive sewage treat-
ment construction grants pro-
gram. This regulatory reform is
based on the idea of producing
only those regulations that are
mandated by law or which are
necessary for effective pro-
gram management. Guidances
are to be discretionary—not
regulations in disguise. A
serious problem in years past
was  lack of local funds to
provide  plant maintenance.
EPA's new regulations require
the approval of a user-charge
system before a community
receives money for certain
grants. This approach will fos-
ter fiscal responsibility and
should provide environmental
benefits for many years to
   Major reforms in the con-
struction grants program  were
accomplished through EPA's
1981 legislative initiatives to
streamline the program,  re-
direct its focus from public
works to environmental needs,
and  reduce the long-term
federal commitment by 60%
from $90 to  $36 billion.  As a
result of prompt Congressional
action on this effort, the pro-
gram was reauthorized for
FY 83-85 at  $2.4  billion
annually (down from  $5 billion
in FY82).Overa three-year
phase-in period, eligibility
categories  will be restricted to
present treatment needs, the
Federal  share will be  reduced
to 55%, and states will  be
given greater flexibility in
allocating  funds.

 State  and  Local
EPA's new leadership views
the Agency's relationship with
states and localities as a true
partnership. The previous pat-
ern of EPA dictating to the
states, treating  them at best as
junior partners, not only makes
for bad relations—it also
makes for bad regulations, and,
therefore, poor  environmental
protection.  This Administration
believes that the people most
affected by a problem should
have a significant voice in de-
ciding the  solution. Therefore,
one of EPA's primary goals in
this first year has been to in-
crease the involvement  of
state  and local  governments in
the Agency's decisionmaking
and actual operation of  pro-
grams for pollution abatement
and control. In  seeking to dele
gate more authority and de-
cisionmaking to the states,
EPA has accomplished the

•  More than doubled the num-
ber of states  which now operate
the New Source Performance
Standards program.

•  Increased by  50% the  states
which operate the Hazardous
Air Pollutant program.

•  Increased by 60% the
states which have interim
RCRA Phase I authorization.

   Perhaps  most importantly, a
combination of  Federal pro-
grams and  state initiatives
have  built,  over the last  de-
cade, a highly-trained, well-
motivated workforce in state
and local environmental agen-
cies across the  country. The
air quality program alone has
invested nearly one-half billion
dollars in state  programs.
States have moved  into this
area strongly, strengthening
their statutes and providing
real financial support, to the
point where  Federal contribu-
tions now represent less than
half of the operational costs of
state environmental programs.

Solid Waste

Under RCRA, the states have
the primary responsibility for
managing solid,  including
hazardous, waste. The first
task is to gear up the priority
hazardous waste regulatory
programs for which Congress
intended states to be primarily
responsible. In FY-1981 and
1982, EPA will provide a  total
of $71.7 million to the states
for developing their own regu-
latory programs and will com-
plete the basic regulatory
   The second major task fac-
ing states under RCRA is to
evaluate nonhazardous waste
disposal facilities on the basis
of EPA criteria which place
restrictions on facilities that
allow open burning or are in
wetlands, floodplains,  habitats
of endangered species, or re-
charge zones for principal
sources of local  drinking
water. EPA has published the
first installment  of an inven-
tory of nonhazardous disposal
facilities that fail to  meet the
   The  third task is to develop
and implement comprehensive
plans for managing non-
hazardous solid waste. Devel-
opment of the state  plans has
been a  long and arduous
process. To  aid these efforts in
FY-1981, EPA:

•  Provided  technical assist-
ance and $8 million in finan-
cial assistance to the states to
help them develop their plans.
•  Received state plans from
over half the states for  review
according to EPA guidelines.

•  Approved 14 state  plans
with the remainder expected to
be approved  in 1982  and


As the result of a  recent legal
settlement between EPA and a
number of industries,  the
burden of underground injec-
tion control regulations has
been lessened without weaken-
ing their effectiveness.

•  There are now  more flexible
standards for judging  the
mechanical integrity of injec
tion wells, a reduction in
routine monitoring require-
ments by well operators and
greater  leeway for states to
define the extent of their
underground  drinking  water
sources. These changes  are ex-
pected to result in economic
savings of $65 to $75 million
over the next five years.

•  During  1981 seven  addition-
al states agreed to accept
delegation of the  construction
grants program, bringing the
total to 45. This  is an import-
ant  step  toward  the  Presi-
dent's goal of a New
Toxics and Pesticides

•  Improved information flow
among states has been fos-
tered. Through a grant to the
National Governors Associa-
tion  ("NGA"), states now have
access to the computerized
Chemical Substances  Informa-
tion  Network. NGA also acts
as a  clearinghouse to  publicize
state toxic substances manage-
ment practices and to allow
experts from  one state to ad-
vise  their counterparts in

•  EPA  has employed  retired
engineers in its ten Regional
Offices to help states  and local
districts inspect  asbestos in
schools and advise on appro-
priate  containment or removal
techniques where warranted.

Air, Noise and Radiation

•  Work is underway to trans-
fer from EPA to the states
responsibility for ensuring that
new  plants satisfy new source
performance  standards
("NSPS") and National Emis-
sion  Standards  for Hazardous
Air Pollutants ("NESHAPS").
Currently,  approximately
67°o of the NSPS and
NESHAPS  compliance  work
is being administered either
partially or fully by the states.
Systems now in  place will
result  in this figure totalling
over 87%  by the end of
FY 1982.
   In addition to the  Clean
Air Act, the Office  of  Air,
Noise, and Radiation also  ad-
ministers and manages
national programs  relating
to noise abatement and control
and  radiation programs.  In
1981,  the  Office of Noise
Abatement and   Control  be-
gan  phasing  out the  Federal
noise program.

                               of Backlogs
• Twenty-one states re-
quested training assistance
as EPA transfers control  of
noise programs  to them.
Nine  state training  sessions
have  already been  conducted
with 16 more scheduled in
FY  82. Approximately 500
state and  local noise officials
will have been trained before
the  noise  program  is com-
pletely phased out as a federal

• Approximately $1.5 mil-
lion  in  noise control  equip-
ment was made available to
states,  localities,  and
universities from EPA.

• Fifteen  states requested
assistance  from EPA  in
designing  public support

• Twenty-four  states will
have active  noise abatement
programs  in place  by Sep-
tember 1982.

• EPA provided support  to
the  Conference of  State Radi-
ation Program Directors in
the  form of technical expertise
and  financial grants.

• The Agency  has  assisted
several  states  and  Indian
nations on special radiation
surveys by direct involvement
or by equipment loan.
An  unglamorous, but none-
theless  important, task  facing
EPA's  new leadership  in
1981  was  the elimination of
backlogs which  had  accumu-
lated  throughout Agency
programs.  Were these  back-
logs allowed to  stand, or
worse, to continue  growing,
opportunities for  innovation
and  reform  in  environmental
protection would have been
thwarted. This was  not per-
mitted to happen. Significant
progress has been made in
this area.

•  In the past three months,
the Office of Pesticides  and
Toxic Substances has reduced
its  backlog  of chemical re-
views from  417  to  123, a
71%  reduction.  Similarly,
the backlog of amended regis-
tration reviews  has been  re-
duced  56%.

•  EPA  is now firmly on
schedule to  produce  six
effluent  guidelines  standards
this fiscal  year  and an
additional  ten next year.
In the previous  five  years,
only one such guideline,
although required  by  law,
had been produced.

•  In 1979, the  Agency re-
ceived  70 applications  for
301 h waivers under  the
Clean Water Act.  These are
requests from  publicly
owned treatment works  for
a variance  from  secondary
treatment requirements when
discharging  into marine
waters.  Of these 70 applica-
tions, 30 involved  discharges
of more than 16 million  gallons
per day.  When  the new Ad-
ministration took office last
year, a few of these applications
were finally coming to,
 /<)  st.tnd   i.'/ H '('' M ."//•'< '•<

Effective environmental
protection requires that every
dollar be  spent  wisely and
efficiently.  We owe  it not
only to  our environment, but
also to  the American tax-
   Accordingly, new proced-
ures have  been  instituted
to control  costs, eliminate
fraud, waste  and abuse,  and
streamline  operations to  make
them  more efficient,  effec-
tive  and responsive.
   Some  of the  more note-
worthy  management accom-
plishments at EPA during the
first year  of  the Reagan  Ad-
ministration include:

Budget Reform

The  1983 budget  increases
funding for hazardous waste
and Superfund by  $36 million,
maintains a strong enforce-
ment program, preserves es-
sential research and develop-
ment, maintains the wastewater
treatment  construction grants
program  at $2.4 billion,  and
substantially  reduces the
regulatory burden on state
and local  governments.
   The 1983  budget is a
sound and  effective environ-
mental protection  plan which
will cost $85  million less
than in 1982  and $237 mil-
lion  less than in  1981. Re-
ductions in the last two years
are in marked contrast to
the increases  which  had
occurred in every prior year
of EPA's existence.

Management  Accountability

The Agency designed and
began operating the  Ad-
ministrator's   Accountability
System, which  enables  the
Administrator to identify at a

•  major initiatives being
carried  out  on  schedule,

•  areas where  successful
performance  may  require
additional attention, and

•  the specific  manager re-
sponsible  for  results.

Grants Administration

The  Agency  is revising  grant
regulations and procedures
to strengthen management
and  simplify   administrative
requirements for  recipients.
This will  streamline  the
process  while better  guarding
against  waste,  fraud, and
abuse.  The  revisions will
also  eliminate  unnecessary
requirements, limit the  paper-
work required  of  grantees,
and  develop  consistency
across  all of EPA's financial
assistance  programs.

Contracts Administration

EPA has institutionalized the
review and approval of con-
tract expenditures  at  the
highest  Agency levels
(Assistant Administrators)
to ensure that  Agency  re-
sources  are used in the  most
efficient and cost  effective

General  Administrative

The  Agency has eliminated
or simplified many of its
forms and  records, is auto-
mating  aspects of its person-
nel and  financial management
systems, and has  refined
and  fully automated  the
Merit Pay  System.
Consolidated Financial

A  consolidated  financial
assistance program will make
it  easier for  states to do
business with EPA.  The con-
solidation allows  a  single
application for all  program
funds,  a single comprehen-
sive  public review, a  coordi-
nated  EPA  review,  consoli-
dated  reporting  by the
grantee,  a single evaluation,
and  an  integrated audit.
The  mechanism  is  flexible
so that a state may  consoli-
date some of  its assistance
while  continuing  to  be
eligible for  categorical
awards under  other programs.
   Efficiencies concerning
cash management,  overtime,
leased  space, publication dis-
tribution, audit resolutions,
telephones, travel expenses,
procurement,   contract proc-
essing,  library subscriptions,
printing and the purchase of
capital  equipment have been
undertaken, resulting  in  sav-
ings  of  hundreds  of
thousands of  dollars to the
American taxpayer.