United States
Environmental Protection
Agency
Administration and
Resources Management
(PMr225)
July 1989

Public - Private
Partnerships (P3)
Strategy
       PUBLIC-    PRIVATE
     PARTNER
        SHIPS
                              Printed on Recycled Paper

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&EPA
Why  Public-Private  Partnerships?
A  Message  from  the  Assistant  Administrator
                   Few would deny that we have made progress in environmental protection. As a society,
                   we have made numerous commitments and huge investments in bringing pollution under
                   control, and in reducing the assaults on our air, water and land. Our air and water are
                   measurably cleaner, and our landfills controlled. But this country is not ready to put the
                   brakes on environmental progress.

                   Congress, responding to public interest and concern for the environment, has authorized
                   significant new requirements which we, as a nation, must meet together.  But a second
                   trend of recurrent Federal budget deficits, changes in our tax laws, and resultant increasing
                   demands on States and localities in all service areas has sharply li mi ted traditional  funding
                   sources.

                   Inevitably, environmental and fiscal trends have collided. And now, our cities face the
                   expensive problem of complying with new regulations while their environmental
                   infrastructure is aging, compounding the already difficult choices about how to allocate
                   limited resources. Quite frankly, we are facing a situation that jeopardizes the future of  our
                   environmental protection agenda.

                   So what is EPA doing about this situation?

                   We realized we needed to alter the way we do business at EPA.  Searching for solutions,
                   we became aware of a few examples where forward-thinking communities had managed to
                   bring private sector resources and ingenuity into play in meeting their environmental
                   obligations.  For  these reasons, we decided to launch an effort to encourage public-private
                   partnerships.

                   Our goal is a simple one-to increase private sector participation in advancing environmental
                   protection to the  level citizens of this country are demanding.

                   As providers of environmental services, local communities, especially small ones, are the
                   focal point for the Public-Private Partnerships initiative. The Strategy Document we have
                   prepared lays out the critical objectives, products, activities and roles of the partners, to
                   ensure viable public-private partnerships are established. This is not solely a document for
                   EPA, but suggests roles for other players as well.  We would like to hear from you and
                   solicit your ideas and suggestions on our Public-Private Partnership strategy.

                   Our initiative is now up front on the public agenda. Every day we hear from new  state
                   officials, financial groups, and others who have become aware of our objectives and want
                   to know what they can do to help. By joining forces, together we can meet the
                   environmental financing challenges that we face.
                                                                    Assistant Administrator

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P3 Strategy Document  Executive Summary
                   Purpose  The main purpose of this Document is to give an overview of EPA's
                             Public-Private Partnerships initiative. It identifies the objectives, ac-
                             tivities, products, and time frames to implement this initiative. It
                             also suggests the roles and activities of public, private, and non-
                             profit participants within that initiative.


               Background  Needs and expectations for environmental protection are growing,
                             while budgetary constraints and changes in Federal tax laws are
                             limiting traditional funding sources. Environmental legislation
                             reauthorized or proposed by Congress in recent years place signifi-
                             cant additional resource requirements on States and communities,
                             increasing their infrastructure and administrative costs. Increasing
                             demands in all service areas, environmental and other, place addi-
                             tional burdens on States and local communities to come up with the
                             resources to cover their needs. The resulting strain on public re-
                             sources jeopardizes past, present, and future environmental im-
                             provements.


  Agency-wide Initiatives  EPA has developed several Agency-wide initiatives designed to
                             bridge the gap between requirements and available resources; to
                             promote greater cooperation between EPA, the environmental and
                             private community; and to encourage the use of innovative tech-
                             nologies. These include:

                                Public-Private Partnerships
                                Alternative Financing
                                Technology Transfer/Cooperative Environmental Management
                                Technology Development
                                Legislative/Regulatory Flexibility
                                Pollution Prevention
            Public-Private  One initiative in particular, Public-Private Partnerships (P3)/ is re-
    Partnerships Initiative  ceiving strong Agency and public support as a means of addressing
                             the environmental funding problem. A public-private partnership
                             exists if the public and private sectors share responsibility for pro-
                             viding environmental public works. EPA is focusing on establishing
                             partnerships in drinking water, wastewater treatment, and solid
                             waste at the local level, with particular emphasis on small commu-
                             nities.

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            P3 Objectives  The Public-Private Partnerships initiative encompasses the following
                            objectives:

                            •  Provide national leadership and coordination
                            •  Determine impediments and incentives
                            •  Facilitate partnership formation
                            •  Provide community outreach
              P3 Products  Work is underway on a number of products to meet these P3 objec-
                            tives. The products include:

                            •  Conferences
                            •  Self-Help Guides and Videos
                            •  Legislative/Regulatory Options Paper
                            •  Case Studies
                            •  Demonstration Projects
                            •  Information and Communication Networks
Roles and Relationships  AH participants play an important role in successful partnerships,
       of Public-Private  ^u* I00*! governments make the final decisions to pursue public-
                Partner*;  P"vate partnership arrangements. As providers of environmental
                           services, local communities, especially small ones, are the focal point
                           for the P3 initiative. The feedback we have received to date sug-
                           gests the following general roles for the participants:
                     EPA:
   Coordinator and Facilitator
 EPA will provide national coordination, leadership, and policy
 development of the P3 initiative's strategy and activities.
        State Government:
                 Marketer
 State governments can help encourage and support the forma-
 tion of public-private partnerships in local communities.
       Local Government:
   P3 Implementers and Users
 Local communities are the primary users and decision-makers in
 the public-private partnership process. They must plan for
 environmental programs and how to fund them. To meet their
 growing infrastructure and environmental service needs, com-
 munities will need to pursue alternatives to traditional service
 and funding arrangements.
           Private Sector:
    Partner in the Delivery of
      Environmental Services
Business and banking interests can offer financial and technical
expertise as well as provide the service arrangements of an envi-
ronmental infrastructure project.

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    Non-Profit Sector:  •  Associations, foundations, academia, and environmental groups
         Contributor of     provide expertise and support for communications, awareness,
P3 Information/Expertise     and outreach to the public.

                       The relationship of participants in public-private partnerships is
                       precisely that of a partnership. They are partners in the provision of
                       services to protect public health and the environment.

                       This Document presents a thinking strategy to encourage an open
                       and ongoing dialogue on how to carry out the P3 initiative.

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P3 Strategy Document   Table of Contents
                     Page   Title
                        /   Executive Summary
                        1   Introduction/Background
                              A.   Environmental Financing Challenge
                              B.   Creative Solutions Are Necessary

                        5   The Public-Private Partnerships Initiative

                        5     A.   The Need for Public-Private Partnerships
                        5     B.   What Is A Public-Private Partnership?
                        6     C.   Types of Public-Private Partnerships
                        7     D.   The Partnerships Initiative: The Process
                        7     E.   The Partnerships Initiative: Objectives
                        9     F.   The Partnerships Initiative: Essential Products
                      13     G.   The Partnerships Initiative: Timetable
                      14     H.   The Roles of the Partners in the Initiative
                      17     I.   The Relationships of the Participants
                      18     J.   For More Information

                           Appendices

                      19  Appendix 1:   Acronyms
                      21  Appendix 2:   Agency Initiatives to Manage and Meet the
                                         Environmental Challenges
                      27  Appendix 3:   EPA Contacts List
                      29  Appendix 4:   Suggested P3 Activities of EPA Offices

                           List of Exhibits

                       2      Exhibit 1:  Actual and Projected Local Government
                                         Expenditures (1981 - 2000)
                       4      Exhibit 2:  Summary of Major Initiatives to Manage
                                         and Meet Environmental Challenges

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Page   Title
       List of Exhibits (Continued)
   6      ExhibitS:   Types of Partnerships
   7      Exhibit 4:   The Partnership Process
   8      Exhibit 5:   Public-Private Partnerships Initiative:
                      Objectives and Products
  12      Exhibit 6:   1989 Regional Conferences
  13      Exhibit?:   Building Public-Private Partnerships:
                      Products and Implementation Schedule
  18      Exhibit 8:   EPA Working with the States, Local
                      Governments, and the Private and
                      Non-Profit Sectors to Build Public-Private
                      Partnerships

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P3 Strategy Document  Introduction/Background
         A. Environmental
      Financing Challenge
Environmental challenges
           are greater and
       traditional funding
     sources more limited
        Local spending for
   environmental services
will increase dramatically
Over the past 20 years, billions of dollars have been spent by govern-
ments, industry, and the public, to build an environmental infra-
structure that protects the integrity of our nation's air, water, land,
and natural resources. The results are impressive, but our work is
not complete. New, tougher, and more complex regulations will
require additional infusions of capital during a period when govern-
ments are struggling to adjust to the maintenance and replacement
costs of an aging infrastructure.

At the same time, traditional funding sources have become limited
due to budgetary constraints, changes in the tax laws, and increasing
demands on States and localities in all service and operating pro-
gram areas. The new state of affairs reflected in legislation such as
the Gramm-Rudman-Hollings bill means we can no longer rely on
the Federal purse to pay for as great a share of environmental pro-
tection as it has in the past. This shift of financial responsibility to
states and local communities from the Federal government is part of
what we know as the "New Federalism", and mis trend will likely
continue.

It is no surprise that recent studies point to a severe shortfall in
public resources available to finance future environmental improve-
ments, especially at the local level.
For local communities, the cost of environmental expenditures will
rise dramatically. (See Exhibit 1). In 1987, local spending cm envi-
ronmental services was $32.6 billion. To maintain this level of envi-
ronmental and service standards, an additional $15.8 billion will be
needed annually by the year 2000.  Furthermore, costs associated
with new regulations are estimated to reach $5.3 billion by the year
2000. This conservative estimate reflects only a portion of the costs
of federal environmental regulations that will take effect over the
next five to ten years, none of the environmental programs envi-
sioned by Congress beyond 1987, and none of the growing number
of new state or local environmental mandates.
                             At the state level, the EPA Office of Water projects a state funding
                             shortfall of approximately $309 million in 1995. A recent FJ>A study
                             suggests that by the year 2000, states will have to spend more than
                             twice the amount spent in 1987 to administer their water programs.
                             This represents the cumulative effect of the many new statutory
                             drinking and surface water requirements coupled with the diminish-
                             ing federal funds that partially support ongoing state surface water
                             quality programs.

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                  Actual and Projected
          Local Government Expenditures
                        (1981 - 2000)
              -\—i—I—i—i—i—i—i—i—i—i—i—i—i—r
       1981 1983 1985 1987 1989 1991 1993 1995 1997 1999

                      Fiscal Year
                                              $5.3Hton

                                              AddBonal local
                                              apendng to comply
                                              with new
                                              envi'onniontal
                                              standards
                                              $15.8Hlon

                                              AdoJBonal local
                                              government spendng
                                              to maintain
                                              current level of
                                              environmental
                                              quafty
 Exhibit 1
 Source: Apogee Research, Inc. The Cost of Environmental Protection Draft Report, 1989.
B. Creative Solutions

       Are Necessary
 Failure to act to reduce the growing difference between needs and
 resources may result in losing the environmental gains we have al-
 ready realized.


 The growing costs of environmental protection require a reexamina-
 ^on °^ ^ow me nation finances and pays for such investments. The
 difference between current and future needs and current spending
 dearly calls for more innovative approaches, especially at the local
 level. We need to take a fresh look at our requirements as well as
 the financing and management options available to meet them.


With these issues in mind, EPA has developed several initiatives to
encourage the institutional and policy changes required to meet
these challenges.

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The initiatives include:
   Public-Private Partnerships
   Alternative Financing
   Technology Transfer/Cooperative Environmental Management
   Technology Development
   Legislative / Regulatory Flexibility
   Pollution Prevention
Exhibit 2 identifies the goals, activities, responsible EPA offices, and
other main participants for each initiative.  An explanation of all
acronyms is given in Appendix 1.
The remainder of this Document is a workplan for the first initia-
tive—Public-Private Partnerships.  It defines these partnerships;
describes the types of partnerships; and specifies the activities,
products, players and suggested roles, and the timing necessary to
implement the initiative.
For additional information on the other five initiatives, see Appen-
dix 2. This appendix consists of more detailed narratives on these
initiatives.
                                                              ~

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                               Exhibit 2
Summary of Major Initiatives to Manage and Meet Environmental Challenges
INITIATIVE
Public-Private
Partnerships
Alternative
Financing
Technology
Transfer
Technology
Development
Legislative/
Regulatory
Flexibility
Pollution
Prevention
MAIN GOAL
Increase private
sector involvement
in environmental
infrastructure
Promote greater
use of financing
mechanisms other than
general appropriations
or federal grants
Facilitate coooperative
environmental manage-
ment among industry
and academia
Stimulate development
of cost-effective
technologies
Promote greater
flexibility of
Congressional and
State legislation and
EPA regulations
Promote an integrated
approach to stressing
prevention
FOCUS/
AUDIENCE
Local
governments,
especially
small
communities
Local
infrastructure
needs and
state and
Federal
administrative
costs
Business and
industry
State and
local
communities
Industry
Federal and
State
legislation
States and
industry
MAJOR
ACTIVITIES
Develop partnership options
Find success stories
Identify impediments
Implement community outreach
Demonstration projects
• Implement SRFs, other AFMs
• Hold OW conferences
• Survey states (NGA)
• Expand use of SRFs and AFMs
to other programs
• Analyze user fee feasibility and
implement in various programs
• Provide tools and information
(OTTRS & CERI)
• Enhance IPA program
• Expand communication networks
• Disseminate technical
information
• Technology Advisory Board
(NACETT)
• Utilize EPA Training Institute
• Implement Technology Transfer
Act
• Develop and evaluate control
technologies
• Establish National
Environmental Technology
Applications Corp.
(NETAC)
• Evaluate and review legislative/
regulatory impediments and
incentives
• Develop legislative/regulatory
options
• Regulatory Rexibility Act
• Produce Agency policy statement
• Support and develop Regional,
State, and local pollution pre-
vention programs
• Supply tools to prevent pollution
• Target opportunities and identify
incentives
• Evaluate progress of pollution
prevention
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P3 Strategy Document  The Public-Private Partnerships Initiative
           A. The Need for  In light of the serious budget constraints facing Federal and State
            Public-Private  governments, EPA believes that public-private partnerships have
              Partnershivs  8reat potential to help meet the growing environmental and re-
                             source challenges facing this country in the 1990's and beyond.
                             Greater private involvement can increase public resources available
                             for environmental protection in at least two ways.
             Private sector
  involvement can lead to
         greater efficiency
    First, properly designed and executed partnerships can provide
    improved environmental services at the lowest cost to the pub-
    lic.

    Second, private equity arrangements can free State and munici-
    pal resources for other investments.
                             In both cases, the involvement of the private sector can lead to im-
                             provements in efficiency that may not otherwise accrue under strict
                             public provision of services. These efficiencies can lower the envi-
                             ronmental protection and compliance costs absorbed by the public.
                             As a result, municipal revenues may be freed for providing other
                             public services.
      B. What is a Public-
     Private Partnership?
A public-private partnership is a contractual relationship between a
public and private party that commits both to providing an environ-
mental service.
    Partnership Activities  The public-private partners generally share responsibility for any
                             one or more of the following activities:

                             •  Decision to provide an environmental service in a community.
                             •  Financing the project using public and/or private financing.
                             •  Designing and/or constructing the facility.
                             •  Operating and maintaining the facility or service.

                             EPA's focus is on establishing public-private partnerships at the
                             local level, especially in drinking water, wastewater treatment and
                             solid waste. Particular emphasis is placed on the needs of small
                             communities.

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               C. Types of  The types of partnerships that have evolved are a result of who does
           Public-Private  w^at with respect to the activities that have just been described. The
             Partnershivs  c^iart below identifies five types of partnerships which are arrayed in
                         "   the chart from partnerships with least private involvement to most
                             private involvement.
                                             Types of Partnerships
                                          Least Private Involvement
                                                              Contract Services
                                                              Turnkey Facity
                                                              Developer Financing
                                                              Privatization
                                                              Merchant Facility
                                          Most Private Involvement
                             Exhibit 3
Partnership Definitions  The key features of each of these types of partnerships is as follows:

                             •   Contract Services.  In this type of partnership, the private sector
                                 is contracted to provide a specific municipal service, such as
                                 garbage collection or to maintain and operate a facility such as a
                                 waste treatment facility.  The facilities are owned by the public
                                 sector.

                             •   Turnkey Projects. In this type of arrangement the private sector
                                 designs, constructs, and operates an environmental facility. The
                                facility is still owned by the public sector.

                             •  Developer Financing.  In this type of arrangement, the private
                                sector (usually private developers) finances the construction or
                                expansion of an environmental facility in return for the right to
                                build houses, stores, or industrial facilities.

                            •  Privatization. In this type of public-private partnership, the
                                private sector owns, as well as builds and operates the facility.
                                They also partially or totally finance the facility.

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                            •  Merchant Facilities. In this type of arrangement, the private
                                sector makes a business decision to provide an environmental
                                service to a community with the expectation that they will make
                                a profit from the services provided. In merchant facilities not
                                only does the private sector own and operate the facility as in
                                privatization deals, they also make the decision to provide an
                                environmental service to a community.

Municipalities determine  As you move toward more private involvement a number of things
      appropriate level of  happen:
     private involvement
                            • The private sector invests more of its funds.
                            • The private sector assumes more of the risk for the effective
                               operation of the facility.

                            On the other hand, the greater the private involvement the less
                            control the municipality has over the delivery and cost of the service.
                            In deciding what kind of partnership is most appropriate, communi-
                            ties have to make tradeoffs between these three factors: private invest-
                            ment, risk, and control. Partnerships have to be tailored to the needs
                            of communities. Certain types of partnerships will work more
                            effectively than others, depending on the requirements and needs of
                            the community.

                            As the Agency proceeds in the implementation of the Public-Private
                            Partnerships strategy, it will investigate and encourage the various
                            types of partnerships as described above.
     D. The Partnerships  The basic process for the P3 initiative, as shown in Exhibit 4 below, is
                Initiatve:  to define a framework involving several key implementation steps.
              The Process  1******                D^
                                                The Partnership Process
                               Define Structure
                                  of the
                                 Initiative
Complete Activities
to Meet
Initiative
—
Market Products
through
Regional
Coordinators
—
Establish Networks
with State/Local
Governments
                            Exhibit 4
     E. The Partnerships  EPA has identified key Agency objectives that will enhance the roles
               Initiative:  of tne public, private, and non-profit sectors in helping to meet local
               Objectives  enyironmental needs. The objectives are:

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                                    Exhibit 5



      Public-Private Partnerships Initiative:  Objectives and Products
OBJECTIVE
Provide national
leadership, and
coordination




Determine impedi-
ments/incentives to
public-private
partnerships




Facilitate
partnership
formation





Community
outreach




MAJOR
ACTIVITIES/PRODUCTS
• Strategy document
• Debate document
• Regional P3 Coordinators
• Environmental Financial
Advisory Board
• Cost of Environmental
Protection Report
• Review Federal, State and local
laws/regulations to identify
barriers
• Analyze partnership barriers and
incentives and develop recom-
mendations
• Develop legislative/regulatory
options paper
• Clearinghouse
• Case studies report
• Current Public-Private
Partnerships Options
• Self-help guides
• Self-help videos
• Demonstration projects
• Venture Investment Funds
• Communications strategy
• Public-Private Partnerships
Bulletin
• Conferences
• State/Local marketing networks

EPA
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Regions





OARM







Program
Offices
OARM





Regions
OARM




OTHER EPA
OFFICES
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Program Offices





OEA
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Program Offices
OGC
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Regions







OEA
Program
Offices



OUTSIDE
PARTIES
States
Localities
Business
Industry
Academia
Associations

States
Localities
Business
Industry
Academia
Assocations


States
Localities
Business
Industry
Academia
Associations


States
Localities
Business
Industry
Academia
Associations
  Note: See Exhibit 5 for EPA's Implementation Timetable
8

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                               Provide a focal point, as well as national leadership and coordi-
                               nation, for public-private partnership activities.
                               Determine the impediments and incentives to partnerships, and
                               develop strategies to alleviate impediments and create incen-
                               tives.
                               Facilitate partnership formation, including identifying viable
                               partnership options that States and communities can use to
                               increase private sector involvement in environmental projects.
                               Provide outreach to communities—sharing with them informa-
                               tion on public-private partnerships and how to arrange them.
     F. The Partnerships   Work on a series of products is underway to meet the Strategy's
               Initiative:   goals and objectives. Exhibit 5 arrays the responsible and partici-
     Essential Products   Patin§ organizations and products for each objective.  The products
                            include:

             Objective 1.   •   Strategy Document. The P3 Strategy will define and frame the
Provide national leader-       nature of the environmental challenge; briefly outline  the initia-
  ship and coordination      ti ve* *e A^^ ta^ng to. address this cuhallen§e' .fesent a
     r                         workplan to build public-private partnerships; specify activities,
                                products, and the timing necessary to carry out the plan; and
                                suggest roles and activities that EPA, State and local govern-
                                ment, and the private and non-profit sectors can pursue in order
                                to implement the initiative.

                            •   The Debate Document.  The Debate Document is a compilation
                                of essays written by national leaders reflecting their thoughts on
                                the impending threat to our environmental infrastructure and
                                on creative solutions to address this challenge. This document
                                will provide the theoretical basis for the initiative and will be the
                                centerpiece of an ongoing debate over the policies which will
                                guide EPA and state activities in  the years to come.

                            •   Regional P3 Coordinators. The Regional P3 Coordinators are
                                contact persons within EPA's Regional Offices who will coordi-
                                nate implementation of the Public-Private Partnerships initiative
                                in the regions. These individuals will take the lead in planning
                                and carrying out the regional portion of the effort, such as con-
                                ducting regional conferences, working with State legislators to
                                identify regulatory and legislative barriers and incentives to
                                partnerships, and identifying success stories where partnerships
                                have worked within their region.

                            •   Environmental Financial Advisory Board. The Board is a
                                nationally recognized, authoritative body of senior executives
                                drawn from all levels of government, including elected officials;
                                                                                         9

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             Objective 2.
Determine impediments
          and incentives
             Objective 3.
   Facilitate partnership
               formation
 the finance and banking community; business and industry;
 environmental organizations; and academia.  This Board will be
 reflective of local and regional municipal finance matters and
 have recognized credibility to communities of varying sizes.
 The Environmental Financial Advisory Board was established
 through the National Advisory Council for Environmental Tech-
 nology Transfer.

 The Cost of Environmental Protection Report. This report
 documents the costs of environmental protection for all levels of
 government and sectors of society. The report presents recent
 trends in expenditures  associated with EPA programs and
 projects future spending patterns. It calculates the gap between
 environmental needs and the resources currently available to
 meet these needs. It also identifies types of communities that
 will have the most difficulty in financing future environmental
 needs.

 Legislative/Regulatory Options Strategy. The purpose of this
 strategy is to develop options for identifying and eliminating
 possible obstacles and disincentives to the establishment of
 public-private partnerships for environmental services.  A
 review of legislative and regulatory barriers will be conducted
 in several distinct phases. The initial phase will focus on prob-
 lems associated with federal statutes and requirements and will
 assess the impacts of proposed tax legislation changes on envi-
 ronmental financing. Upon completion of the first phase/ a
 review of state and local barriers will be conducted. An  options
 paper will identify the legislative and regulatory strategies that
 EPA and others should pursue to promote the building of part-
 nerships.

 Clearinghouse. The clearinghouse will be an information  ex-
 change maintained by EPA on matters relating to environmental
 financing, infrastructure development, and public-private part-
 nerships. Materials  include products of the Public-Private Part-
 nerships initiative, program office publications, and lists of
 Federal/State/local  contacts in relevant areas.

 Case Studies Report. This report will document a series of
 successful public-private partnerships in three main areas:
 drinking water, wastewater treatment, and municipal solid
 waste management.

 Current Public-Private  Partnerships Options. This report
 assesses which types of public-private partnerships are viable,
given the current regulatory and legislative climate. It also

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         Objective 4.
Provide community
            outreach
explores which arrangements are most suitable for specific
environmental problems and what the incentives and impedi-
ments are in the formation of partnerships.

Self-Help Guides and Videos. These materials are designed to
provide local officials with the information necessary to imple-
ment a partnership. The guides will show how to choose the
partnership option that best suits their specific needs and pro-
vide detailed step-by-step information on how to structure and
implement the partnership agreement.

Demonstration Projects. Demonstration projects will serve as
models of succesful public-private partnerships  to communities.
These projects will demonstrate to communities that partner-
ships work and benefit both the public and private sectors. EPA
will provide grant assistance to a few communities to facilitate
the successful formation and development of public-private
partnerships.

Venture Investment Funds.  These funds are EPA monies
available for use in public-private partnership demonstration
projects.  Such money would be a part of the technical assistance
provided to State and local officials in structuring specific proj-
ects.

Communication Strategy. The communication  strategy pro-
vides a framework for EPA's efforts to raise awareness of the P3
initiative, solicits input from external sources, and encourages
participation in meeting P3 objectives. It identifies the different
publics important to the success of the P3 initiative and describes
how EPA will manage the various working relationships with
each major constituency. A key aspect of this strategy is our
coordination with other Federal agencies, including the Office of
Management and Budget, the Department of Treasury on tax
issues, and the Departments of Energy and Housing and Urban
Development on the interrelationships of various energy, hous-
ing, and environmental financing issues.  Due to the ongoing
nature of the function, the communication strategy will be
reviewed and updated periodically, as required.

Public-Private Partnerships Bulletin. The Bulletin is a series of
reports to generate dialogue and debate on the many problems,
opportunities, and issues that exist in the areas of environmental
financing and public-private partnerships. The  publication will
keep interested individuals informed of EPA activities, the
resources available to them, and ideas from others facing similar
challenges across the country.

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                                   Conferences. These forums will bring together, on a national
                                   and regional level, interested individuals from all sectors to
                                   focus on pertinent environmental financing and infrastructure
                                   problems. EPA plans to hold four or five regional conferences
                                   per year. They will examine how to establish partnerships most
                                   suited to the requirements and conditions of each region in the
                                   country. The first conference was sponsored by EPA's Region
                                   IV Atlanta office, in April 1989, and focused on solid waste
                                   issues.  The location and time of the regional conferences are
                                   given in Exhibit 6.
                                     1989 Regional Conferences
                                                    Region 5
                                                    TEA 1989
                               Region 8
                               TEA 1989
                                                                             Region 1
                                                                             TEA 1989
                                                                           Region 3
                                                                           June 1989
Region 4
April 1989
                              Exhibit 6
                                 State/Local Marketing Networks. These networks consist of
                                 individuals in State and local governments, professional and
                                 trade associations, and business and industry that will receive
                                 products, information, and activities relating to the Public-
                                 Private Partnerships initiative.
12

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G. The Partnerships  A number a key activities for EPA's Public-Private Partnerships
          Initiative:  "titiative a*6 now underway. Each of these activities involves the
          Timetable  comPletion of products (described in Section F). Exhibit 7, the Im-
                      plementation Schedule, illustrates the timing of the products. The
                      Schedule covers the first three years of the initiative and identifies
                      short and long-term milestones for work products.
                      Building Public-Private Partnerships:
                     Products and Implementation Schedule
                        Work
                       Product
               Strategy Document
               The Debate Document
               Regional P3 Coordinators
               Envir. Financial Adv. Board
               Cost of Environmental Project
               Legislative/Regulatory Options
               Clearinghouse/Case Studies
               Current P3 Options
               Self-Help Guides/Videos
               Demonstration Projects
               Venture Investment Funds
               Communication Strategy
               P3 Bulletin
               Conferences
               State/Local Market. Network
                                                 Implementation Schedule
   FY1989
Jan May Sept
   FY1990
Jan May Sept
   FY1991
Jan May Sept
           ongoing- every quarter
            ExMbit?
                                                                                  13

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          H. The Rotes of the  The development of public-private partnerships involves support
              Partners in the  ^rom Federal, State, and local government, finance and banking,
                   Initiative  ^usmess an<^ industry, academia and foundations, and associations
                               and interest groups. An elaboration of the suggested roles and
                               activities for each participant in the Public-Private Partnerships
                               initiative is described below.
                  EPA'sRole
             'Coordinator and
                  Facilitator"
Within EPA, its Headquarters and Regional offices will participate in
a number of ways in the initiative. EPA Headquarters will provide
national coordination, leadership, and policy development of the P3
initiative's strategy and activities. EPA Regional Offices will serve
as the contact point and liaison to States and localities, and will be
involved in the implementation of the initiative. The Regional
Offices play a crucial role in the dissemination of information to
States, local governments and the private sector on the P3 initiative.
Products to support the initiative will be developed at Headquarters
and marketed through the Regional Offices.
           The EPA Steering  EPA has established a Steering Committee and Task Force to pro-
             Committee and  ^de leadership and guidance for the P3 initiative. Appendix 3 lists
                  Task Force  me mem^ers °f me Steering Committee and Task Force.
            EPA's Activities
    Develop strategy and guidance as needed to implement and
    coordinate the P3 initiative.

    Provide direction and assistance to members of the Environ-
    mental Financial Advisory Board on carrying out the agenda of
    the Board.

    Coordinate and develop the environmental financing clearing-
    house.

    Provide examples and publish case studies of successful and
    unsuccessful public-private partnerships.

    Develop and distribute self-help guides and videos for use by
    communities in reviewing and implementing the public-private
   partnership option.

   Publish, distribute, and contribute articles and viewpoints to the
   Public-Private Partnerships Bulletin.

   Take the lead in identifying, developing and implementing
   public-private partnerships demonstration projects.
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                               Develop and use available communication networks to increase
                               the participation of both the public and private sectors in meet-
                               ing the goals of the initiative.

                               Monitor events and projects across the country which may have
                               a bearing on public-private partnerships.

                               Conduct conferences, seminars and meetings for government
                               officials and the private sector to increase awareness of public-
                               private partnerships.

                               Monitor, analyze, and provide recommendations on legislative
                               initiatives and regulations which may influence privatization as
                               well as identify incentives and disincentives to public-private
                               partnerships.
State Government Role
              "Marketer'
State governments are the vital links to local communities. In our
discussions with States and localities, they have suggested a number
of activities which they could pursue to build public-private partner-
ships. Hie major suggested role for States is to encourage and sup
port localities in the formation of public-private partnerships.  Hie
States can also serve as contact points between EPA and communi-
ties, insuring that localities in need of assistance are brought to the
attention of an EPA contact Suggested activities for State govern-
ments include but are not limited to:
                               Promote and assist localities in the formation of public-private
                               partnerships.

                               Work with local organizations and EPA to obtain and provide
                               the necessary guidance and information that local communities
                               need to form a public-private partnership.

                               Assist in developing legislative/regulatory options and evaluate
                               and review State regulations and legislation and how they
                               inhibit or promote the formation of public-private partnerships.

                               Contribute State viewpoint articles to the Debate Document and
                               the Public-Private Partnerships Bulletin.

                               Provide input on public-private partnership case studies and
                               provide information for and use the EPA P^ Clearinghouse.

                               Review self-help guides and videos for practical applications
                               and pertinence to local communities needs or requirements.
                                                                                        15

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                                  Participate in and co-sponsor regional and State conferences on
                                  public-private partnership issues.

                                  Participate in the development and implementation of public-
                                  private partnership demonstration projects.
   Local Government Role
            "P3 Implementers
                  and Users"
The role of local communities is most critical in the Public-Private
Partnerships initiative. Localities are the primary users and decision
makers in the public-private partnership process. Some of the sug-
gested activities for local governments include the following:
                                  Work with States and EPA in addressing issues of concern to the
                                  community on public-private partnerships.

                                  Work with States and EPA in implementing public-private
                                  partnership demonstration projects.

                                  Participate in regional and local conferences on public-private
                                  partnership issues.

                                  Provide lessons learned on public-private partnerships regard-
                                  ing finance, legal, political, technical, or other aspects of the
                                  partnership.

                                  Review and revise local regulations or laws that discourage the
                                  creation or implementation of public-private partnerships.

                                  Provide a local viewpoint on barriers and incentives in the
                                  formation of public-private partnerships by submitting articles
                                  to the Public-Private Partnerships Bulletin.

                                  Review, provide recommendations, and use P3 guidance docu-
                                  ments, e.g. Self-help guides and videos.

                                  Contribute to and use P3 information clearinghouse and case
                                  study documentation.
        Private Sector Role

    'Partner in the Delivery of
     Environmental Services"
The private sector plays an increasingly important role in the public-
private partnership process as a potential provider of the financing,
technical, or service arrangements of an environmental infrastruc-
ture project. Some of the suggested activities for finance, banking,
business and industry are:
                                  Provide feedback and information on public-private partner-
                                  ship success stories and failures.
16

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                               Provide financial resources for public-private partnerships.

                               Contribute articles to the Public-Private Partnerships Bulletin.

                               Provide private sector viewpoints on incentives and drawbacks
                               to the formation of public-private partnerships.

                               Participate in and contribute to national, regional, and local
                               conferences on public-private partnerships.

                               Participate in public-private partnership demonstration projects.
Non-Profit Sector Role


       "Contributor of P3
  Information/Expertise"
The non-profit sector's role in the Public-Private Partnerships initia-
tive is to provide information and expertise on various subjects and
issues that relate to public-private partnerships.  Academia, founda-
tions, professional and trade associations, and interest groups can
support the P3 initiative in the following ways:
                               Expose membership to the P3 initiative by providing informa-
                               tion exchange and direction.

                               Analyze P3 issues and explore questions such as why the private
                               sector hasn't moved more aggressively into the P3 market? Is
                               the profit margin there? etc.

                               Provide expertise and consultation to local communities.

                               Contribute articles to the Debate Document and the Public-
                               Private Partnerships Bulletin.

                               Participate in and contribute to conferences held on public-
                               private partnerships.

                               Review legislative/regulatory options papers and provide
                               criticism and suggestions.
   I. The Relationships  The relationship of participants in public-private partnerships is
     of the Participants  Preciselytnat—mey are partners in the provision of environmental
                           protection and services.
                           Local governments are the focal point for this initiative. Their need
                           for resources, both financial and technical, particularly in the face of
                           the growing demand for increasingly expensive environmental
                           services, calls for support from other levels of government and from
                           the private and non-profit sectors. States are also key actors in the
                           development of public-private partnerships. They act as the liaison
                           between EPA and local communities and influence the formation of
                           public-private partnerships through State laws and regulations.
                                                                                           77

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                                   EPA Working with the States, Local
                                  Governments, and the Private Sectors
                                   to Build Public-Private Partnerships
                                                       EPA
                                         States
Non-profit

 Sector
                                        Local Gov't
                                                                 Private Partner
                                                   PUBLIC-PRIVATE

                                                    PARTNERSHIP
                            Exhibit 8
                              Exhibit 8 illustrates the relationship of the partners as one of mutual
                              support. EPA and State governments facilitate and provide techni-
                              cal support.  Local communities are the implementers of public-
                              private partnerships.  Banking and business interests offer financial
                              and technical resources.  Associations, foundations, academia, and
                              interest groups provide expertise and support for communications,
                              awareness, and outreach to the public.
    /. For More Information  Interested individuals and organizations are invited to call or write
                              the Resource Management Division of the Office of the Comptroller,
                              EPA for more information about the initiative.

                              Please call or write:

                              U.S. Environmental Protection Agency
                              Office of the Comptroller
                              Resource Management Division (PM-225)
                              401 M Street, S.W.
                              Washington, DC 20460

                              Telephone: (202) 475-8227
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Appendix 1  Acronyms
       AFM  Alternative Funding Mechanism
       CERI  Center for Environmental Resource Information
        EPA  U.S. Environmental Protection Agency
      ICMA  International City Managers Association
      LIMB  Limestone Injection Multistage Burner
    NACETT  National Advisory Council for Environmental Technology
                 Transfer
     NETAC  National Environmental Technology Applications
                 Corporation
       NGA  National Governor's Association
       OAR  Office of Air and Radiation
      OARM  Office of Administration and Resources Management
      OCEM  Office of Cooperative Environmental Management
        OEA  Office of External Affairs
       OGC  Office of General Counsel
      OPPE  Office of Policy, Planning and Evaluation
       OPTS  Office of Pesticides and Toxic Substances
       ORD  Office of Research and Development
     OS WER  Office of Solid Waste and Emergency Response
     OTTRS  Office of Technology Transfer and Regulatory Support
         OW  Office of Water
          P3  Public-Private Partnerships
         RIA  Regulatory Impact Analysis
       SITE  Superfund Innovative Technology Evaluation
         SRF  State Revolving Fund
        UST  Underground Storage Tank
                                                                 19

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                                        '

                                                       \

                          :^m
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           Appendix 2  Agency Initiatives to Manage and Meet
                          the Environmental Challenges
    Interrelationships of
      Agency Initiatives
          Key Initiatives
   Creative solutions must
   identify innovative and
cooperative ways to bridge
the gap between needs and
       available resources
EPA has several Agency-wide initiatives underway to address
the environmental resource challenge, promote greater coopera-
tion between EPA and the community, and to encourage the use
of innovative technologies. These initiatives are:
   Public-Private Partnerships
   Alternative Financing
   Technology Transfer/Cooperative Environmental Manage-
   ment
   Technology Development
   Legislative/Regulatory Flexibility
   Pollution Prevention
These initiatives are linked together by four common themes:

•  They are designed to bridge the gap between requirements
   and the ability to meet needs.

•  They are Agency-wide initiatives which cut across all EPA
   programs and media.

•  They seek to promote greater cooperation and coordination
   between EPA and its State and local government partners;
   private industry; the financial community; associations, and
   academia.

•  They encourage the use of innovative techniques, proce-
   dures, and technologies to manage and meet environmental
   needs.

There are distinct differences in the way the various initiatives
attempt to bridge the environmental funding gap and their focus
or target audience. Some of the intiatives focus on reducing the
cost to meet environmental requirements while others try to
increase the resources available to meet these needs. A brief
description of each initiative, excluding the Public-Private Part-
nerships initiative which is discussed in detail in the body of this
Document, is given below.
  Alternative Financing  The Alternative Financing initiative assists various government
                          entities in discovering and using funding mechanisms other man
                          general appropriations or federal grants to raise revenue. As
                          traditional sources of funding become more constrained, new
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        EPA offices are already  funding mechanisms must be utilized. These alternative funding
    promoting alternative fund-  mechanisms (AFMs) include techniques such as revolving and
       ing mechanisms (AFMs)  other revenue management funds, user fees, special financing
         &                     districts, bond banks, and dedicated taxes to provide resources
                               for environmental programs.

                               This initiative examines alternative financing mechanisms across
                               all levels of government. Its focus is to: 1) examine the financing
                               of environmental infrastructure needs at the local level and 2)
                               examine the financing of administrative and operating costs of
                               environmental programs at the State and Federal levels.

                               There are several offices within EPA involved in promoting
                               AFMs. Some examples are:

                               •  The Office of Water (OW) is responsible for implementing
                                   the State Revolving Fund program. They are also involved
                                   in encouraging States to use AFMs to support the costs of
                                   administering their environmental programs. The Office of
                                   Water is holding conferences with the States on this issue.

                               •  The Office of Solid Waste and Emergency Response's
                                   (OSWER's) Office of Underground Storage Tanks (UST)
                                   recently produced a handbook that discusses a variety of
                                   AFMs that can be used to support State and local UST pro-
                                   grams.

                               •  The Office of Policy, Planning and Evaluation has completed
                                   a report on "State Use of Alternative Financing Mechanisms
                                   in Environmental Programs" which covers AFMs used by
                                   States to fund administrative and operating costs of regula-
                                   tory programs.

                               •  The Office of Cooperative Environmental Management
                                   (OCEM)  is working through the National Governors' Asso-
                                   ciation to survey states and transfer information among
                                   states on approaches and methods to AFMs.

                               •  The Office of Administration and Resources Management
                                   (OARM) has developed an authoritative body of expertise to
                                  provide advice and opinions to the EPA Administrator and
                                  State and local governments regarding environmental mu-
                                  nicipal finance and taxation issues.

                               EPA is also looking at innovative approaches to finance the ad-
                               ministrative and operating costs of programs at the  Federal level.
                               The Agency supports the development of Federal fees where
                               EPA provides special benefits to identifiable user groups. For
                               example:

                               •  The Agency's Superfund program finances the cleanup of
                                  abandoned hazardous waste sites through an excise tax
22

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                             levied on oil and chemical manufacturers.

                             In 1988, EPA began collecting fees for the processing of Pre-
                             manufacture Notices (PMNs) in the Toxic Substances pro-
                             gram.

                             In 1990, EPA will collect fees under the new Ocean Dumping
                             Ban Act.

                             EPA will also be collecting fees for the reregistration of pesti-
                             cides and the expedited processing of amended pesticides
                             registration as well as collecting fees under the new Radon
                             Act.
  Technology Transfer/  Technology Transfer seeks improved results by creating a climate
           Cooperative  *^at f°sters cooperative approaches to solving environmental
        Environmental  Pro^^ems' building knowledge and skills to take positive actions,
          __.             and expanding the use of technology transfer through technical
               g men   assistance training and focused information dissemination. As
                         our environmental programs evolve and mature, State and local
                         governments assume more implementation responsibilities while
                         EPA moves to a supportive role. EPA's challenge is to provide
                         States and localities with the technical tools and innovative
                         analytic and management information they need.

                         This initiative attempts to reduce the costs of environmental
                         protection by fostering a cooperative approach among industry,
                         academia, States and local communities.

EPA must provide States  Some of the Technology Transfer activities underway within the
   and localities with the  Agency include the following:
         tools they need     m
                         •  The Agency is currently enhancing its overall Intergovern-
                            mental Personnel Act (IPA) program to expand and create
                            communication networks with State and local governments.

                         •  The Office of Research and Development (ORD) has estab-
                            lished the Office of Technology Transfer and Regulatory
                            Support (OTTRS) and within it the Center for Environmental
                            Resource Information (CERI). This Office and CERI are the
                            focal point for ORD's publication and scientific information
                            dissemination effort. In addition to publishing and distribut-
                            ing ORD products, CERI presents seminars, workshops, and
                            training courses around the country which are  free to State
                            and local governments.
                                                                                  23

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                                    The Agency has created a National Advisory Council for En-
                                    vironmental Technology Transfer (NACETT) comprised of
                                    37 members who represent government agencies, business
                                    and industry, academia, and public interest groups to pro-
                                    vide guidance to this effort. Leadership and coordination of
                                    the Agency initiatives is located in a new Office of Coopera-
                                    tive Environmental Management established as a staff office
                                    in the immediate Office of the Administrator.

                                    The EPA Institute network serves as a central clearinghouse
                                    of information on environmental education and training
                                    efforts underway throughout the Federal government,
                                    within the Agency, and jointly between the Agency, State
                                    and local governments, and other organizations. A newly
                                    developed electronic catalogue of all Agency training courses
                                    will enable State and local governments to search a database
                                    for EPA courses, as well as list courses they can offer to the
                                    Agency.
    Technology Development  As part of EPA's support role in providing States and localities
                                with the technical tools they need to successfully implement
                                required environmental programs, Technology Development
                                seeks to stimulate the development and use of new techniques
                                and technologies. This initiative strives to reduce the costs of
                                environmental compliance through the development of new
                                technologies that will provide more efficient and effective envi-
                                ronmental cleanup processes.

           New techniques and  The effort is led by the Office of Research and Development
     technologies are critical to  wlucn ^as implemented the program through a number of activi-
                                fr|pc
          effective cleanup and
                 reduced costs  B   Cooperative arrangements have been established with indus-
                                    try through the Federal Technology Transfer Act and by the
                                    creation of joint Federal, industry, and academic laboratories
                                    to demonstrate new technologies.

                                •  National Environmental Technology Applications Corpora-
                                   tion (NETAC) was formed to facilitate commercialization of
                                   priority environmental technologies being developed by
                                   government and private sector sources.

                               •  Technology development is also stimulated through the SITE
                                   (Superfund Innovative Technology Evaluation) Demonstra-
                                   tion Program and other efforts such as the demonstration
                                   and testing of the Limestone Injection Multistage Burner
                                   (LIMB).
24

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  Legislative/Regulatory  The Legislative/Regulatory Flexibility initiative is directed at
               Flexibility  reviewing the Agency's approaches to both legislative and regu-
                            latory development to ensure that these approaches are fair,
                            effective, flexible, and affordable, given a complete consideration
                            of the impacts of these activities. EPA recognizes that environ-
                            mental legislation and the subsequent implementation of regula-
                            tions have tremendous impacts on all levels and sectors of soci-
                            ety—the Federal, State and local government; the private sector;
Environmental laws should  and the citizenry. This initiative attempts to reduce the costs of
  be fair, effective, flexible,  environmental compliance by promoting greater flexibility in
            and affordable  Congressional and State legislation, and in EPA and State regula-
                            tions, while at the same time preserving environmental stan-
                            dards.

                            •  EPA's intent is to provide the State, local and private sectors
                               with a greater array of regulatory options and alternatives
                               and to reduce the difficulties of compliance.

                            •  The Agency must also implement the Regulatory Flexibility
                               Act, which consists of understanding, analyzing, and where
                               possible, reducing the impacts that new and existing regula-
                               tions have on small entities, such as small businesses and
                               governmental jurisdictions.


    Pollution Prevention  The Pollution Prevention initiative seeks to reduce threats posed
                            by environmental pollution and the associated costs of environ-
                            mental protection by promoting an integrated environmental
                            approach stressing the prevention of pollution before it becomes
                            a problem. State and local governments will be encouraged to
                            play a role in helping to shift management priorities of industry
                            and the public.  One of EPA's primary goals is to support the de-
                            velopment of State and local pollution prevention programs.

  Pollution Prevention can  A new Pollution Prevention Office, in the Office of Policy, Plan-
     promote an integrated  mn8 ^d Evaluation, is the focal point for the Agency's preven-
   environmental approach  tion activities *»*the maJor ^P*08 be^nd m integrated ap"
                  rr        proach to pollution prevention across all program areas.

                            •  A multimedia pollution prevention approach will be incor-
                               porated into all EPA program activities as the preferred
                               method of managing wastes and reducing emissions.

                            •  A broad set of groups are being involved in developing a"
                               National Pollution Prevention agenda, including States, local
                               and Federal government, industry trade associations, and
                               academia.
                                                                                      25

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26

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             Appendix 3   EPA Contacts List
Steering Committee

Charles L. Grizzle (Chair)
Assistant Administrator
Office of Administration and
Resources Management

Erich W. Bretthauer
Acting Assistant Administrator
Office of Research and Development

Robert S. Cahill
Associate Administrator
Office of Regional Operations

Jonathan Z. Cannon
Acting Assistant Administrator
Office of Solid Waste and
Emergency Response

Terry Davies
Special Assistant
Office of the Administrator

Linda J. Fisher
Assistant Administrator
Office of Policy, Planning,
and Evaluation

Henry Habicht
Deputy Administrator
EPA

Robert E. Layton, Jr.
Regional Administrator
Region VI

William G. Rosenberg
Assistant Administrator
Office of Air and Radiation
Greer C. Tidwell
Regional Administrator
Region IV

William A. Whittington
Acting Deputy Assistant
Administrator, Office of Water
                                           Jennifer Joy Wilson
                                           Assistant Administrator
                                           Office of External Affairs
Task Force

David P. Ryan (Chair)
Comptroller
Office of Administration and
Resources Management

Stephen P. Allbee
Director, Planning and Analysis
Division
Off ice of Water

Bruce T. Barkley
Director, Office of Management
Systems and Evaluation
Office of Policy, Planning and Evaluation

Harless R. Benthul
Acting Assistant Regional Administrator
Region VI

Richard M. Brozen
Acting Director, Budget Division
Office of Administration and
Resources Management

Douglas D. Campt
Director, Office of Pesticide Programs
Office of Pesticides and Toxic
Substances

Michael B. Cook
Director, Office of Drinking Water
Office of Water

Charles L. Elkins
Director
Office of Toxic Substances
Office of Pesticides and
Toxic Substances

Joseph Franzmathes
Assistant Regional Administrator
Office of Policy and Management
Region W
                                                                                       27

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   T. L. Juszczak
   Acting Director, Office of Program
   Management and Technology
   Office of Solid Waste and Emergency
   Response

   Gary M. Katz
   Director, Financial Management
   Division
   Office of Administration and
   Resources Management

   Peggy H. Knight
   Director, Office of Community and
   Intergovernmental Relations
   Office of External Affairs

   Alfred W. Lindsey
   Acting Director, Office of Environmental
   Engineering and Technology
   Demonstration
   Office of Research and Development

   Sylvia Lowrance
   Director, Office of Solid Waste
   Office of Solid Waste and
   Emergency Response
   A. Stanle)       _
   Director, Planning~and Management
   Staff
   Office of Air Quality

   Richard D. Morgenstern
   Director, Office of Policy
   Analysis
   Office of Policy, Planning and
   Evaluation

   R. Thomas Parker
   Director, Office of Cooperative
   Environmental Management
   Office of the Administrator

   Alvin M. Pesachowitz
   Deputy Director
  Office of Information Resources Management

   Harvey Pippen
   Director, Grants Administration Division
   Office of Administration and Resources
   Management
John J. Sandy
Director, Resource Management
Division
Office of Administration and
Resources Management

Jack Stanton
Director, Technology Transfer Staff
Office of Research and
Development

Gerald H. Yamada
Deputy General Counsel
Office of General Counsel
Office of the Comptroller
Public-Private  Partnerships  Initiative
Staff

U.S. Environmental Protection Agency
Office of Administration and Resources
  Management
Resource Management Division (PM-225)
401 M Street, S.W.
Washington, DC 20460

(202) 475-8227

John J.  Sandy
Division Director

David Osterman
Branch Chief

Leonard Bechtel
Margaret Binney
Ellen Fahey
Keith Hinds
Kim Lewis
Joanne Lynch
Timothy McProuty
Eugene Pontillo
EUySeng
Christine Zawlocki
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Appendix 4  Suggested P3 Activities of EPA Offices
                This appendix provides detailed information on the suggested P3
                activities for EPA Offices.

      OARM  The Office of Administration and Resources Management is the
                lead office for the P3 initiative. Divisions within OARM will en-
                gage in the following P3 activities:

                Resource Management Division

                • Develop the strategy and guidance as needed to implement
                   and coordinate the various aspects of the Public-Private
                   Partnerships Program.

                • Provide direction and assistance to members of the Environ-
                   mental Financial Advisory Board.

                • Take the lead in developing and distributing self-help guides
                   and videos for use by communities in reviewing and imple-
                   menting the public-private partnership option.

                • Participate and contribute to regional conferences on public-
                   private partnerships.

                • Publish, distribute, and contribute articles and viewpoints to
                   the Public-Private Partnerships Bulletin.

                • Take the lead in identifying, developing and implementing
                   public-private partnerships demonstration projects.

                • Provide examples and publish case studies of successful and
                   unsuccessful public-private partnerships.

                • Coordinate and develop the environmental financing clear-
                   inghouse.

                • Provide support to Grants Administration Division on legisla-
                   tive analysis.

                • Research, develop, and publish the Current Public-Private
                   Partnerships Options document.

                •  Develop and  use the available communication networks to
                    increase the participation of both the public and private
                    sectors in meeting the goals of the initiative.
                                                                            29

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                                 •  Coordinate, edit and publish the Debate Document on the
                                    environmental financing challenge that we face.

                                 •  Develop and establish a P3 venture investment fund to pro-
                                    vide financial assistance, as appropriate, to the demonstration
                                    projects.

                                 •  Publish and distribute the Cost of Environmental Protection
                                    report.

                                 •  Educate and involve EPA Program Offices in P3 effort on a
                                    continuous basis.

                                 Grants Administration Division

                                 •  Take the lead in reviewing Federal environmental legislation
                                    and regulations (including OMB Circular A-102, and SRF
                                    funding regulations), to identify Federal barriers and incen-
                                    tives to public-private partnerships.

                                • Propose changes to Federal environmental legislation and
                                   regulations that would facilitate partnerships.

                                • In cooperation with State and local governments, develop
                                   model legislation to promote partnerships.

                                •  Provide assistance on authorized uses of venture investment
                                    fund which provides financial assistance in demonstration
                                    projects.

                                Financial Management Division

                                • Provide input on existing P3 policies and procedures with
                                   regard to financial issues, and assess the impact of P3 strategy
                                   on Agency's financial operations.

                                Office of Information Resources Management

                                • Work with OARM on coordinating and developing environ-
                                   mental financing clearinghouse.
                       OPPE   The Office of Policy, Planning and Evaluation can support the P3
                                initiative by undertaking the following activities:

                                • Conduct additional Sector Studies at the state and local levels.

                                • Evaluate and refine the Regulatory Impact Analysis process.
30

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            Review OARM's Cost of Environmental Protection report for
            accuracy and consistency with the sector studies.

            Review policies on regulatory development and formulate
            options regarding regulatory costs and impacts on public-
            private partnerships.

            Research and develop the Cost of Clean report mandated by
            Congress.
  OEA  The Office of External Affairs can contribute to the P3 initiative in
         the following ways:

         • Review policies on legislative development and formulate
            options regarding environmental costs and impacts on public-
            private partnerships.

         • Establish a subcommittee of the EPA/State Operations Com-
            mittee to ensure States provide input into the P3 initiative.

         • Run local roundtable, Small Community Coordinator, and
            State/EPA Operations Committee and provide assistance to
            OARM in maintaining a working relationship with these
            groups.

         • Work with OARM in establishing effective networks with
            business, environmental groups, academia, civic associations
            and labor groups.

         • Provide advice and consultation on P3 demonstration projects.

  OGC  The Office of General Counsel can provide assistance in the
         following areas:

         • Review legal implications and appropriateness of new policy
            options regarding legislative and regulatory development.

         • Review legalities associated with the distribution of Venture
            Fund monies for demonstration projects.
OCEM  Areas where the Office of Cooperative Environmental Manage-
         ment can help in the P3 initiative are:

         • Provide mechanisms for and provide assistance in setting up
            the Environmental Financial Advisory Board through
            NACETT.
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                                    Provide OARM and Program Offices assistance in working
                                    with professional association networks and other contacts at
                                    the State and local levels.

                                    Promote and disseminate information on public-private
                                    partnerships, especially to the States and communities.
        EPA Program Offices  Suggested activities for the Offices of Water, Solid Waste and
        (OW, OSWER, OAR,  Emergency Response, Air and Radiation, Research and Develop-
            ORD and OPTS)  men*'an£^ Pesticides and Toxic Substances are:

                                 •  Review guidance documents for technical accuracy as they
                                    relate to media matters.

                                 •  Contribute EPA program office viewpoint articles for the
                                    Debate Document.

                                 •  Provide input on the legislative/regulatory options strategy
                                    and review products for consistency with Agency policy.

                                 •  Provide examples of case studies on successful/unsuccessful
                                    partnerships and other relevant financing-related information
                                    for the clearinghouse.

                                 •  Promote and market the concept of public-private partner-
                                    ships at the State and local levels as an alternative to financing
                                    environmental infrastructure.

                                 •  Provide technical assistance and review self-help guides and
                                    videos.

                                 •  Contribute articles to the Public-Private Partnerships Bulletin.

                                 •  Participate in national and regional public-private partner-
                                    ship conferences.

                                 •  Actively support, suggest candidate projects, and participate
                                    in the planning and implementation of public-private partner-
                                    ship demonstration projects.

                                 •  Share information on professional networks at the Federal,
                                    State and local levels.
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EPA Regional Offices  Suggested activities for the Regional Offices are:

                         • Develop strategy and guidance as needed to implement and
                            coordinate the P3 initiative.

                         • Provide assistance to members of the Environmental Finan-
                            cial Advisory Board on carrying out the agenda of the Board.

                         • Assist in the development of the environmental financing
                            clearinghouse.

                         • Identify success stories i.e. projects within the region where
                            public-private partnerships have worked.

                         • Develop and distribute self-help guides and videos for use by
                            communities in reviewing and implementing the public-
                            private partnership option.

                         • Contribute articles and viewpoints to the Public-Private Part-
                            nerships Bulletin.

                         • Nominate candidate demonstration projects, where EPA can
                            facilitate the formation of specific public-private partnerships.

                         • Develop and use available communication networks to in-
                            crease the participation of both the public and private sectors
                            in meeting the goals of the initiative.

                         • Monitor events and projects across the country which may
                            have a bearing on public-private partnerships.

                         • Conduct conferences, seminars and meetings for government
                            officials and the private sector to increase the communities
                            interest and awareness of public-private partnerships.

                         • Work with state legislators to identify regulatory and legisla-
                            tive barriers and incentives to public-private partnerships.
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For More Information  Please Call or Write:
                     U.S. Environmental Protection Agency
                     Office of the Comptroller
                     Resource Management Division
                     (PM-225)
                     401 M. Street, S.W.
                     Washington, DC 20460

                     Telephone: (202) 475-8227

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