United States
               Environmental Protection
               Agency
               Enforcement And
               Compliance Assurance
               (6602J)
EPA 305-F-96-003
August 1996
vvEPA
Dry Cleaning Sector
Compliance Strategy
                      LOCAL DOT OEANNG SHOP

-------
          Dry Cleaning Sector Compliance Strategy
TABLE OF CONTENTS
  I.  Background                                       1
      A. Introduction                                  1
      B. Compliance Goals                              1
      C. Characteristics of Perc Dry Cleaning
          Industry                                     2
      D. Regulatory Requirements for Perc Dry
          Cleaners                                     4
      E. Implementation of Regulatory Programs
          Applicable to Perc Dry Cleaners & Measures
          of Success                                   9
 II.  Targeting                                       10
     A.   The Community,  Sector and Media Approaches    10
     B.   Dry Cleaning as a Priority Sector             11
III.  Selection of Tools for Enforcement & Compliance  12
          Assurance
     A.   Selection Based on Characteristics of Dry     12
          Cleaners
     B.   Enforcement Versus Compliance Assistance      13
     C.   Flexible Agency Policies Geared Toward Small
          Businesses                                  13
     D.   Creative Ways to Promote Compliance through
          Partnering                                  15
 IV.  Tasks                                           16
      A. Matrix of Tasks                              16
      B. Descriptions of Tasks                         17

  V.  Conclusion                                      28

 VI.  List of Key Stakeholders                         29

-------
 I.   BACKGROUND
       ii
 A.   Introduction

      This  compliance  strategy will address the perchloroethylene
 (perc) dry cleaning industry.  Perc is the predominant cleaning
 solvent  used by the vast majority of the dry cleaning industry.
 This industry is subject to environmental regulations to prevent
 and reduce releases of perchloroethylene to various media such as
 air, surface water, groundwater, and soil.  The strategy,
 therefore,  takes a multi-media approach and covers various
 regulations including: the Clean Air Act  (CAA), Resource
 Conservation and Recovery Act  (RCRA), Clean Water Act (CWA) and
 Safe Drinking Water Act (SOWA) .We discuss these requirements in
 more detail below.

 B.   Compliance Goals

      The main goal of this compliance strategy is to equip
 compliance assistance providers with tools to plan for and
 provide  assistance to the dry cleaning community.  The compliance
 assistance providers  include Federal, state and local regulators,
 and non-regulatory entities, such as the Small Business Technical
 Assistance Programs (SBTAPs) and Small Business Development
 Centers  (SBDCs).  We  believe this strategy presents a
 comprehensive approach to the needs of the commercial dry
 cleaning industry and of environmental regulators and other
 compliance assistance providers.  By describing the compliance
 issues pertaining to  the dry cleaning sector, the strategy
 enhances the compliance assistance providers' ability to
 understand the characteristics and needs of the dry cleaning
 industry and to be more responsive to these needs.  The use of
 sector-specific tools to provide compliance assistance will
 enhance  compliance by increasing the dry cleaning community's
.understanding of pertinent environmental requirements and the
 sector's potential impact on human health and the environment.

      The Strategy also seeks to assist providers in identifying
 how to target facilities for compliance assistance and/or
 traditional enforcement.  While regulators can use the strategy
 to  more  effectively incorporate compliance assistance for dry
 cleaners into traditional enforcement, non-regulating entities,
 such as  SBTAPs and SBDCs, can use the strategy to target those
 dry cleaners in the most need of assistance out of the thousands
 of  cleaners in their  area.  These targeting techniques can be
 used to  reach dry cleaners who are not members of trade
 associations and typically have less access to environmental
 information.   The strategy encourages providers to consider the
 impact of  the dry cleaning sector when selecting community-based
 initiatives and targeting compliance assistance and enforcement
 efforts  in that community.  Also,-the strategy apprises the
 providers  concerning  other Agency policies related to compliance

-------
 and enforcement, such as the Enforcement Response Policy for
 Treatment of Information Obtained through Clean Air Act Section
 507 Small Business Assistance Programs and the Policy on
 Compliance Incentives for Small Businesses.  Armed with an
 understanding of these policies and targeting techniques,  the
 providers will increase compliance assurance among the dry
 cleaning sector.

      The strategy focuses on building partnerships at different
 levels.  The strategy starts by building partnerships between  the
 Agency and compliance assistance providers by equipping the
 providers with information and opening the lines of
 communication.  The next level of partnership is between the
 providers and the dry cleaning community.  As compliance
 assistance providers become better equipped to serve the dry
 cleaning community,  a stronger partnership is built.   Dry
 cleaners and trade associations are more receptive to providers
 who  are knowledgeable about the industry and aware of their
 concerns.   The building of partnerships is facilitated by
 increased communications among the Regions, States,  and others as
 they share their successes and shortfalls in providing assistance
 to increase compliance within the dry cleaning community.

     The strategy will increase the compliance assistance
 providers'  awareness of the sector-specific tools,  so they can
 make them more available to the dry cleaning community.   The
 strategy describes several recent products that are directed
 towards enhancing the compliance of the dry cleaning sector.   It
 also contains a list of on-going and planned sector-specific
 projects.   Some of these tasks maximize benefits from the
 resources available for compliance outreach.   We also identify
 the  offices that may be best suited to lead these activities with
 contacts,  if available.   Due to resource constraints,  it is  not
 possible to undertake all these activities simultaneously;
 accordingly,  the compliance strategy prioritizes the tasks.

     Although there remains a lot of work to be done  in  the  dry
 cleaning sector,  it is an area where there has already been
 outreach by trade associations,  states and universities.
 Accordingly,  one of  the guiding principles in implementing this
 compliance strategy is to identify where work has been completed
 and  build  on that work - not duplicate it.

 C.   characteristics  of the Perc Dry Cleaning  Industry

     A  defining  characteristic of  the regulated perc dry cleaning
 community  is  the large number of facilities that are in
 operation.  Typical  estimates  of facilities that handle perc
 range from 25,000 to 35,000, but estimates have ranged as high as
 47,000.  The  large number  of facilities means that considerable
 effort  is required to reach the owners and operators to  ensure
that they understand and comply with the environmental

-------
requirements to which they are subject.  Given the size of the
regulated community, it is unlikely that dry cleaners will be
inspected at sufficiently regular intervals to accurately
determine and ensure compliance.

     Although the environmental statutes define "small
businesses" differently, ninety percent of the dry cleaners could
be classified as such under any of these statutes.1   Small dry
cleaners can be distinguished from their larger counterpart,
industrial launderers/dry cleaning facilities, because they
employ no more than a hundred people.  Moreover, it is not
uncommon for a small dry cleaner to be owned and operated by a
single family, otherwise known as a "Mom & Pop" business.  The
majority of these small cleaners have gross annual revenues under
$115,000 and operate under a small profit margin.  Currently, the
start up cost for a commercial dry cleaner is almost $115,000.

     Small commercial cleaners are less likely than their larger
counterparts to become members of and participate in dry cleaning
trade associations which often educate their members.  The larger
trade associations for dry cleaners, such as the International
Fabricare Institute (IFI) and the Neighborhood Cleaners
Association (NCA), are located in the Northeastern region of the
United States.  Their membership rolls are not particularly
representative of the smaller dry cleaning establishments.  In
addition, members of these organizations do not reflect the
large, and still growing, number of Korean dry cleaners in the
industry.  Small dry cleaners not involved in trade associations
often fall through the cracks.  They are unaware of the various
environmental regulations with which they must comply and lack
connections to associations that could provide outreach and     ?
education.  Furthermore, because EPA and the state environmental
agencies may lack knowledge of these businesses1 existence, they
may be out of the system entirely.

     A large percentage of owner/operators do not speak English
as their first language.  In fact, thirty percent of the cleaners
are owned/operated by Koreans.  A smaller percentage of the dry
cleaners speak Spanish as their primary language.  This poses
unique problems.  Conventional outreach to national dry cleaning
trade associations is not an effective means of communicating
with these non-English-speaking groups since the groups generally
are not members of these associations.  Furthermore, the
     aUnder the Clean Air Act a source emitting hazardous air
pollutants  (HAPs) can be designated a small business if it
employs no more than 100 employees and emits less than a specific
amount of HAPs.  RCRA doesn't have a designation for small
businesses, but a facility can be classified as a small quantity
generator.  This is elaborated upon under "Regulatory
Requirements for RCRA."

-------
 literature published and circulated by the trade associations  are
 typically in English and thus ineffective.   There are,  however,
 several local Korean trade associations with which Federal  and
 state regulators can collaborate.   OC will need to establish
 relationships with and coordinate with these associations.

      Dry cleaners tend to be located in highly populated urban
 and suburban areas because the perc dry cleaning industry is a
 service industry that thrives on being accessible to its
 customers.   Their close proximity to the population means that
 any releases to the environment will have  a larger impact on the
 public than if the business were located in a  less congested
 area.   All  these characteristics have played a role in  shaping
 this compliance strategy to address the perc dry cleaning
 industry.

 D.   Regulatory Requirements for Perc Dry Cleaning Sector

 Clean  Air Act (CAA)

     Dry cleaners are regulated under the Clean Air Act due to
 their  use of perc.   Perc is listed as one of the 189 hazardous
 air  pollutants (HAPs)  under the 1990 Clean  Air Act Amendments
 (CAAA)  that must be regulated to reduce air toxic emissions.   The
 most recent regulation affecting the industry,  the National
 Emission Standards for Hazardous Air Pollutants (NESHAP) for perc
 dry  cleaners (58 FR 49354),  was promulgated on September 22,
 1993.   The  NESHAP for perc  dry  cleaners affects facilities  that
 are  "major" sources and "area"  sources.  The CAAA of 1990 define
 "major" sources of HAPs as  any  source (facility)  that emits 10
 tons/year of any single HAP or  25  tons/year of any combination of
 the  189 HAPs listed in CAA.   Very  few dry cleaners are  classified
 as major sources.   The CAAA of  1990  also define an "area" source
 as any source of HAPs that  is not  a  "major"  source.  Although
 most perc dry cleaners do not meet the threshold requirement to
 constitute  a "major"  source,  they  are nonetheless subject to the
 CAA  regulation as area sources.  The NESHAP for perc dry cleaners
 further distinguishes between large  and small  area sources  based
 upon the volume of perc these sources  use.

     The NESHAP regulation  sets  standards to reduce the  perc
 emissions from dry cleaning facilities.  The regulation  requires
 dry  cleaning facilities which are major sources and large area
 sources to:   employ pollution prevention and good housekeeping
 practices,  comply with record keeping, monitoring,  and reporting
 requirements  and install and maintain  control  equipment.  Small
 area sources  also are  subject to the  same NESHAP requirements to
reduce perc  emissions  by employing pollution prevention measures.
The small area sources  are not required to  install control
equipment.

     Good housekeeping practices require all dry cleaners to

-------
perform weekly maintenance and monitoring of their machinery.
The cleaners are required to record these activities in a log and
maintain the information for five years.  They also have a record
keeping requirement to maintain an account of their monthly perc
usage.  The reporting requirement for existing dry cleaning
establishments required them to submit an initial notification
report to the Agency by June 1994.

     The requirement for installing control equipment is
dependent on the amount of perc that a facility uses during a
twelve month period and whether an owner had the dry cleaning
machine in operation on the proposal date of the NESHAP
regulation for perc dry cleaning (December 9, 1991).  If a dry
cleaning facility uses 140 gallons/year or less, it is considered
a small area source and is not required to install air pollution
control equipment.  If a dry cleaning machine was in operation
before the rule's proposal date, the machine is an "existing"
unit.  Otherwise, it is a "new" machine.  Any existing regulated
machines must have installed the required control equipment by
September 1996, which is three years after the rule's
promulgation.  All dry cleaners who want to install new dry
cleaning machines on or after the proposal date, must operate the
dry cleaning unit using the control equipment specified in the
regulations.  No three year period to come into compliance
applies as does for existing dry cleaning machines.

     The amendments to the NESHAP were published in the Federal
Register on September 19, 1996, as part of a settlement agreement
with the IFI in the U.S. Court of Appeals for the District of
Columbia Circuit (60 FR 52000, October 4, 1995).  The amendment
addresses two issues.  The first issue concerns transfer machines
purchased or installed between proposal and promulgation of the
NESHAP. These machines had been banned in the final rule, but
were not banned in the proposed rule.  Under the amendment "new*
transfer machines installed after proposal (December 9, 1991) and
before promulgation (i.e., September 22, 1993} follow the
regulations for "existing" transfer machines.  The "new" transfer
machines installed after promulgation are not allowed to operate.

     The second issue concerns exceedances of the perc
consumption limits that determine a source's classification,
To monitor the status of a source, the NESHAP requires dry
cleaners to calculate their annual perc consumption levels each
month by totaling the amount of perc purchased at their
facilities for the previous 12 months. IFI objected to a single
exceedance of the perc consumption limits serving to reclassify a
dry cleaning facility, since an isolated exceedance could be due
to unusual and unique circumstances beyond the control of the dry
cleaner (e.g., the slight possibility of two peak cleaning
seasons, such as Easter and Passover, occurring twice during a
twelve month period). To address this concern, the Agency issued
a policy that episodic exceedances of the consumption limits will

-------
 not automatically reclassify a source from small area to  large
 area or large area to major.  Episodic exceedances are
 exceedances that occur no more than once in a three year  period.


      Under Section 507 of the 1990 Amendments to the Clean Air
 Act,  each state is required to establish a small business
 stationary source technical and environmental compliance  program
 which includes the appointment of state small business ombudsman.
 Section 507 defines small businesses as non-major sources
 employing 100 or fewer people,  with limited amounts of air
 pollutant emissions.   Accordingly,  most perc dry cleaners would
 be  considered small businesses,  able to take advantage of these
 technical and compliance assistance programs.  The Section 507
 program will provide information on regulatory compliance
 assistance,  pollution prevention,  and accidental releases and
 their prevention.

      As of January 1996,  forty-seven State and Territorial Small
 Business Ombudsmen are in place and effectively  interacting with
 small businesses.   Forty-eight  State and Territorial Small
 Business Assistance Programs are providing advice and technical
 assistance to small businesses  subject to the provisions  of the
 CAAA  of 1990.   Twenty-nine of the  State programs have expanded to
 include multi-media information and assistance to help businesses
 comply with all environmental statutes and regulations.

 Resource Conservation and Recovery  Act (RCRA)

      Under RCRA, dry  cleaning establishments  are regulated based
 upon  the amount of hazardous waste  (perc)  they generate and
 whether they treat, store or dispose of the waste on-site.  Perc
 dry cleaning facilities typically generate hazardous F002 and
 U210  wastes  from still residues, cooked powder residues and spent
 cartridge filters,  which  are then sent off-site  for treatment and
 disposal.  Under RCRA, there are three categories of hazardous
 waste generators:   conditionally exempt small  quantity generators
 (CESQGs)(40  CFR Part  261.5),  small  quantity generators (SQGs) (40
 CFR Part 262)  and  large quantity generators (LQGs) (40 CFR Part
 262). . The majority of dry cleaning establishments, based on
 their use of perc,  would  qualify as either CESQGs or SQGs.
 CESQGs  generate 100 kg or less of hazardous waste per month.
 SQGs  generate between 100 and 1000  kg of hazardous waste  or 1 kg
 of acutely hazardous  waste in a  calendar month.   Dry cleaners can
 be large quantity  generators (LQGs)  if they generate over 1,000
kg of hazardous waste a month.

      Each month a  dry cleaner must  determine  its generator
 category as  a CESQG,  SQG  or LQG  to  know the requirements to which
 it is subject.   All large and small quantity generators must
obtain  an EPA Identification Number,  select an authorized
hazardous waste transporter,  and select a  designated treatment

-------
facility.  RCRA regulates how the dry cleaners must store,
handle, ship and finally dispose of their perc waste.  The
cleaners must keep records on waste generation, submit reports of
their waste handling activities, and track the transport and
disposal of their waste.  CESQGs have considerably fewer
requirements they must follow.

Clean Water Act (CWA)

     Under the CWA, if a perc dry cleaning facility is a direct
discharger into surface waters, the facility is required to have
its own National Pollutant Discharge Elimination System (NPDES)
permit.  A direct discharger is a facility that releases directly
into navigable waters, while an indirect discharger empties its
waste water into a publicly-owned treatment works (POTW) waterway
system.

     The more likely scenario is that the perc dry cleaner is an
indirect discharger.  The 15,000 POTWs nationwide treat the flow
from the indirect dischargers before releasing it directly into
navigable waters.  POTWs are required to obtain NPDES permits and
may be required to implement a pretreatment program.

     When a perc dry cleaning facility is an indirect discharger
of toxic industrial waste to one of the 1542 POTWs with a
pretreatment program, it will be subject to the standards set by
the POTW.  Section 401.26 of the CWA lists perc, under the name
tetrachloroethylene, as a toxic pollutant.   A POTW with a design
flow (capacity) greater than 5 million gallons per day  (mgd) is
required to establish a pretreatment program as part of the
POTW*s NPDES permit (40 CFR Part 403).  The State or Region can
still require POTWs with less than 5 mgd design flow to establish
a pretreatment program.  The standards in the POTW pretreatment
program to which a perc dry cleaner would be subject are the
National Prohibited Discharge Standards, State and local limits,
and hazardous waste notification.  Under 403.12(p) of the CWA
industrial users must notify the POTW, the EPA Regional Waste
Management Division Director, and the State hazardous waste
agency in writing of any discharge into the POTW of a substance,
which, if otherwise disposed of, would be considered hazardous
waste under 40 CFR 261.  The de minims exemption for waste
discharge is 15 kg/month.  The discharge of perc would qualify as
a hazardous waste discharge, so if a dry cleaner discharges more
than 15 kg/month of perc into the sewer system, it must notify
the required parties.  Another, type of standard in the
pretreatment program is the categorical standard, which is
industry-specific.  EPA has not developed national categorical
standards for perc dry cleaners.

     The majority of POTWs do not require perc dry cleaning
facilities discharging to their treatment plants to obtain
operating permits.  A few POTWs, however, issue permits and

-------
 monitor the perc dry cleaners operating in their service area.
 For example, in California the East Bay Municipal Utility
 District and the District in Orange County have set guidelines
 for their dry cleaners which minimize air emissions, wastewater,
 and hazardous waste generated.  This multi-media approach is
 accomplished by prohibiting the discharge of process waste
 containing solvent to the sanitary sewer or, alternatively, by
 setting discharge limits and requiring the operation of  dry-to-
 dry cleaning units with refrigerator condensers which don't
 generate wastewater.

 Safe Drinking Water Act (SDWA)

      The perc dry cleaning industry may be subject to some
 requirements promulgated under the Safe Drinking Water Act
 (SDWA),  including Underground Injection Control (UIC) provisions,
 development of local  wellhead protection programs,  and emergency
 provisions under the  SDWA.

      Underground Injection

      Under the authority of the Act,  underground injection of
 waste is controlled to protect aquifers that are or may
 reasonably be expected to be sources of drinking water.   The SDWA
 prohibits any underground injection that may result in the
 presence of a contaminant in underground water  that supplies, or
 reasonably can be expected to supply,  any public water system if
 that contaminant may  cause a violation of any primary drinking
 water regulation.

      Injection wells  are used to discharge or dispose of  fluids
 underground.   The injection wells  are basically man-made  or
 improved "holes" in the ground deeper than their widest surface
 dimension.  The EPA has grouped injection wells  into five
 categories.   Class I,  Class II and Class III wells  inject fluids
 below underground sources of drinking water (USDW).  Class IV and
 Class V  wells inject  fluids into or above USDW.   Class IV wells
 are  prohibited.   Some Class V wells are technologically advanced
 wastewater disposal systems used by industry, but most are "low-
 tech" holes in the ground.  Their simple construction provides
 little or no protection against possible ground water
 contamination,  so it  is important  to control what goes into them.

      EPA believes that of all the  different kinds of Class V
wells, those wells used to  inject  industrial and commercial
wastes present  the greatest danger to USDW.   Although these wells
are  illegal,  many of  them are still in existence because  they
have not been properly closed.  In  many cases, these industrial
wastes are disposed of via  septic  systems,  designed for the
treatment of  sanitary wastes.   In  the case of dry cleaners,
disposal  of perc wastes  into  a septic system would result in a
high potential that USDW may  be endangered.   The disposal of perc

                                8

-------
 (or other industrial) waste into a septic or other underground
waste disposal system may subject the cleaners to DIG program
requirements.  Depending on the severity of the contamination,
the business may be required to cease its practices, remedy the
soil surrounding the leach field, or in some cases, apply for a
permit and demonstrate that its practices would not result in
endangerment of USDWs.

     Wellhead Protection

     The Wellhead Protection (WHP) Program responds to a critical
groundwater protection need.  If a State designs a WHP program,
it is implemented at the local level by having communities
identify and manage groundwater recharge areas tied to specific
wells or well fields.  Wellhead protection measures include
zoning and comprehensive land use planning and restrictions in
major cities, towns, and communities.  Dry cleaning
establishments, located within wellhead protection areas may be
subject to additional state or local requirements designed to
minimize contamination of wells used for drinking water.  In
addition, process modifications, waste minimization, monitoring
and recycling are encouraged under the WHP program.

     SDWA Emergency Powers

     Section 1431 of the SDWA provides EPA with the enforcement
authority to issue an order or to file a judicial action whenever
EPA has information that a contaminant, which is present in or
likely to enter a Public Water System Supervision (PWSS) Program or
an underground source of drinking water, may present an imminent
and substantial endangerment to the health of persons.  This
section of the SDWA may impact a perc dry cleaning facility if
perc is discharged into the sewage system, permeates the concrete
pipelines, and enters the groundwater. The Central Valley
Regional Water Quality Control Board in Sacramento, CA
investigated sources of perc in numerous municipal water supply
wells in California's Central Valley.  The investigations
revealed higher concentrations of perc in soil samples near perc
dry cleaners.

E.  Implementation of Regulatory Programs Applicable to Perc Dry
     Cleaners & Mures of Success
     A determination as to which entity constitutes the
implementing entity for the dry cleaning sector depends on the
statutory requirements for authorization of a state program and
whether a particular state has been authorized for the applicable
part of the program.  The air regulations for dry cleaners are
currently being implemented and enforced by the EPA.  States have
the option of applying for authority to implement and enforce the
NESHAP dry cleaning regulation.  At this time, however,
California is the only state approved for delegation of the

-------
 NESHAP dry cleaning regulation for non-major sources.   This
 notice was published in the Federal Register on May 21,  1996961
 FR 25397).

      Under RCRA, the LQG, SQG and CESQG requirements are part of
 the "base" RCRA program.  In general,  the base RCRA program  is
 implemented and enforced by the States.  At this time,   all
 states except for Alaska, Hawaii, Iowa and Wyoming have been
 delegated authority to implement the base program.   In the
 states which do not have delegated authority,  the Agency
 implements the program.

      In the pretreatment program of the CWA,  the POTW is
 responsible for inspecting and enforcing against POTW users  who
 are discharging waste water into the public water system.  Either
 EPA or the State can enforce against the POTW for not complying
 with its NPDES permit.   If the State is approved to administer
 the NPDES program,  then it is the enforcing entity.  For States
 not approved,  EPA is the enforcing entity.

      Whether the implementing entity is the Federal, State or
 local agency,  tracking the compliance  status  of the regulated
 community is an integral part of a successful program.   The  EPA
 currently uses various  databases,  such as AIRS,  RCRIS, TRI,  IDEA,
 to  track the environmental information on industries.    These
 databases or tracking systems can be used to measure the success
 of  environmental programs.   As a measurement  tool,  a tracking
 system is only as accurate as the information it contains.   It
 is,  therefore,  crucial  that the implementing  entity input
 accurate and current information into  the tracking  system to
 ensure that this measurement tool is a reliable reflection of the
 effectiveness  of the compliance and enforcement efforts. The
 tracking systems are also valuable tools in helping the
 Agency/states  determine which sectors,  communities,  and/or
 specific media to prioritize or target for  compliance assistance.
 To  assist in sound   decision making,   the information contained
 in  these databases must be accurate and current.  This requires a
 commitment from the  implementing entity to  input and update  the
 dry cleaning  information.

 II.  TARGETING

     The limited resources under which environmental regulatory
 agencies operate and the public's  demand for prudent, efficient
use  of their tax dollars require that  these regulatory agencies
target their compliance and enforcement efforts to obtain the
maximum  environmental benefit from those resources.

A.  The  Community,. Sector and Media Approaches

     There are numerous ways in which  a regulatory agency can
focus its limited resources.   The  1996/1997 MOA Guidance to the

                                10

-------
Regions identifies •three such approaches: community based,
sector-based and media-based priorities.

     Regions can work with States to propose high priority
communities, ecosystems, or places for multi-media enforcement
and compliance initiatives.  Pertinent factors in determining
priorities include: low rates of compliance, industry specific
criteria, media specific criteria, environmental justice
concerns, pollution output models for specific geographic areas
and citizen complaints.

     The Agency can also identify specific industry sectors which
are national and/or Regional priorities.  These sectors are
selected based on factors such as high noncompliance rates, high
volume TRI releases, significant presence and impact in Regions
and feedback provided through Headquarters/Regional in-house
expertise.

     Yet a third way to identify priorities may depend on media-
specific environmental and noncompliance problems.  Media
specific priorities may be identified by the Water, Toxics,
Pesticides and EPCRA, RCRA, Air and/or Superfund programs.  These
priorities can be addressed in conjunction with community-based
and sector based activities.

     Once selected, a strategy for the community, sector or media
based priority is developed to address the environmental and/or
noncompliance problems using various enforcement and compliance
assurance tools deemed appropriate.  The strategy, in general,
should take multi-media considerations into account.  It may also
involve working with multiple agencies, as appropriate (e.g.,
Department of Transportation, State agencies, OSHA).

B.  Dry Cleaning as a Priority Sector

     EPA has decided to target perc dry cleaners as a "priority
sector" under the FY 96/97 Memorandum of Agreement.  Regions,
therefore, will be required to direct some of their enforcement
and compliance efforts to these dry cleaners.  The following
discussion addresses some of the considerations in identifying
dry cleaners as enforcement/compliance targets.

     In the past, under the Agency's media specific approach,
perc dry cleaning facilities were targeted for air quality
because reductions in perc, then a listed VOC, could be credited
to the state's ozone non-attainment planning.  In 1992, EPA
proposed removing perc from the list of VOCs because of its
negligible photochemical reactivity and its insignificant impact
on ozone formation.  The Agency published the final rule
excluding perc from the list of VOCs on February 7, 1996  (61 FR
4588).  Although agencies do not target perc dry cleaners in an
effort to bring ozone non-attainment areas into compliance,

                                11

-------
 regulatory agencies are encouraged to target dry cleaners in any
 non-attainment area as a means to improve the overall air quality
 of that area.  Furthermore, these cleaners should still be
 targeted for air quality considerations,  as perc is a listed
 hazardous air pollutant (HAP)  due to its  toxicity and its status
 as a possible carcinogen.

      While the physical size of a local dry cleaner or its
 individual environmental impact upon a community may be small
 (e.g.,  dry cleaners may be SQGs under RCRA), the cumulative
 impact  from several uncontrolled cleaners may warrant the
 attention of the Agency and the community and serve as a
 criterion in determining whether a community is an enforcement
 and compliance assistance priority.

      In addition, the perc dry cleaning industry is a service
 industry.   Like other service  industries,  such as gasoline
 stations or grocery stores,  dry cleaning  facilities will be
 located in areas convenient to their customers'  homes or places
 of employment.   The location of dry cleaners in highly populated
 areas should be taken into account when selecting targeting
 priorities.

      Although dry cleaners are not typically located in lower
 income  areas or areas populated by minorities,  a large number of
 dry cleaners are Korean.   It may be difficult for Korean-speaking
 dry cleaners to understand and take steps  to comply with
 complicated,  technical environmental requirements written in
 English.   Cultural and language barriers are yet other reasons to
 focus resources on this particular industry  sector.

      These considerations,  as  well as anecdotal  information  from
 Regional and State inspectors,  were  important in shaping the
 Agency's decision to  target  dry cleaners as  a priority sector.

 III.  SELECTION OF TOOLS FOR ENFORCEMENT & COMPLIANCE ASSURANCE

 A.   Selection Based on Characteristics  of  Dry Cleaners

      The selection of tools  for enforcement  and  compliance
 assurance  activities  are integrally  intertwined  with the Agency's
 overall  targeting priorities.   In a  particular sector,  the
 selection  of  tools will also depend  on:  the characteristics of
 the  industry  in particular geographic locations, what constitute
 "typical"  violations  in the  sector and  the availability of
 enforcement/compliance resources.

      Some  of  the pertinent characteristics of the  perc dry
 cleaning industry that may affect selection  of tools include:
 the  large  number of small, mom and pop  dry cleaners;  the
Agency's/States'  inability to  identify  and inspect the large
number of  facilities;  small profit margins which limit a dry

                                12

-------
cleaner's ability to hire environmental consultants, or pay
typical penalties issued under the authority of the CAA and/or
RCRA; a lack of understanding or misinterpretation of
environmental requirements; and language/cultural barriers.
These characteristics suggest that compliance assistance tools
may be more effective in achieving compliance than relying only
on traditional enforcement mechanisms.

     Regional inspectors whom we queried said that the most
typical violations among perc dry cleaners include:  record
keeping violations (especially not maintaining records on-site)
and notification violations.  Facilities that do not notify the
Agency that they are handling perc may also be out of compliance
due to the way they are operating.  In addition, they pose
problems because the Agency may not even know that these entities
exist.  They are out of the enforcement/compliance system
entirely.  These characteristics indicate that traditional
enforcement targeting would be inadequate to address the universe
of perc dry cleaning facilities.

B.  Enforcement Versus Compliance Assistance

     The characteristics discussed above make traditional
enforcement through inspections, enforcement actions and high
penalties difficult and of limited effectiveness.  Dry cleaners
know that regulators have other large industries to address and
that small dry cleaners are not likely to be inspected.
Consequently, when a dry cleaner weighs the immediate benefits
against the costs to obtain compliance, particularly when profit
margins are narrow, compliance may not appear to be the "wise"
business choice.

     These characteristics indicate that direct compliance
assistance coupled with some enforcement may be the more
effective way to bring small dry cleaners into compliance.  A
more detailed discussion on compliance assistance tools appears
below.  An effective enforcement presence, however, may be
established through a limited number of random inspections which
are conducted periodically and are well-publicized  (covered in
the media and in trade publications).  The large number of small
businesses and relatively low profit margins may warrant the
selection of Notices of Violations  (NOVs) rather than
administrative/civil actions and field citations rather than
higher penalties, especially for minor violations such as record
keeping deficiencies.

C.  Flexible Agency Policies Geared Towards Small Businesses

     The Office of Enforcement and Compliance Assurance issued
the CAA Section 507 Enforcement Policy (507 Policy) on August 12,
1994.  Section 507 of the CAA requires States to establish Small
Business Assistance Programs (SBAPs) to provide stationary source

                                13

-------
 technical and environmental compliance assistance to  small
 businesses.  A "small" business is defined under Section  507 as
 having 100 or fewer employees and being a minor source.   Most dry
 cleaners would qualify as small businesses.   The Section  507
 Enforcement Policy sets forth the Agency's guidelines for
 implementing the Section 507 program.

      Under the 507 Policy,  penalties against  small businesses can
 be waived; however, the business must  seek assistance from a non-
 confidential State SBAP and correct any violations within an
 appropriate period of time.  States with SBAPs  which  are
 independent from the State's enforcement program can  provide
 technical assistance on a confidential basis  to small businesses
 which come to the SBAP for assistance.   It is not possible,
 however,  to mitigate penalties under this second option.

      Signed on May 20,  1996,  the Agency's  Final Policy on
 Compliance Incentives for Small Businesses ("SBP") presents
 another approach to improving compliance in the dry cleaning
 sector without taking formal enforcement actions and  issuing
 penalties.   While the Section 507 Policy is single media,
 focusing on air regulations,  the SBP is a  multi-media policy and
 addresses violations under  all environmental  statutes and
 regulations that EPA administers,  except for  corrective action
 programs and the Public Water Supply System Program under the
 Safe  Drinking Water Act.

      A small business under the SBP is  defined  as having  100 or
 fewer employees across  all  facilities and  operations  owned by the
 entity.   Unlike the 507 Policy,  there is no limitation on the
 amount of pollutants produced by the small business.  Most dry
 cleaners  would qualify  as "small"  under this policy.

      The  SBP,  in part,  implements  President Clinton's Executive
 Memorandum on Regulatory Reform 60 FR 20621 (April 26, 1995).
 Under the SBP,  Agency/states  can exercise  discretion  to waive the
 imposition of all or a  portion of  a penalty when a violation is
 corrected within a time period appropriate to the violation in
 question, where there has been a good faith effort to comply with
 applicable  regulations,  and there  are no repeat violations.  The
 policy does not apply where the violation  involves criminal
 wrongdoing,  the violation has caused serious harm or presents an
 imminent  or substantial endangerment to public health or the
 environment,  or presents a  significant threat to health, safety
 or the  environment.   Under  the SBP,  good faith is demonstrated
when  a  facility has received  compliance assistance from a
government  or government supported program and the violations
have  been detected during the on-site compliance assistance.  If
the compliance assistance is  confidential, then the small
business  can disclose the violation to the appropriate agency to
get the benefits  of the SBP.  Alternatively, a small business can
demonstrate good faith by conducting an environmental audit and

                                14

-------
promptly disclosing all violations to EPA or the appropriate
state regulatory agency and correcting the violations.

     Both the 507 Policy and SBP encourage dry cleaners to obtain
compliance assistance without the threat of facing an enforcement
action with high penalties that might put the dry cleaner out of
business. For more information on the SBP, contact Karin Leff
(202) 564-7068 or David Hindin (202) 564-6004.  For more
information on the 507 Policy, contact Karin Leff.

D.  Creative Ways to Promote Compliance through Partnering

     In these days of regulatory reinvention, it is fruitful to
explore innovative approaches to enforcement and compliance
assurance.  Partnering with industry and other environmental
stakeholders is one such approach.  What follows are descriptions
of innovative ways to encourage compliance.

     Dry cleaning trade associations may offer programs to help
dry cleaners become "Certified Environmental Dry Cleaners," or
the like.  Although regulators may elect not to "endorse" these
programs, it may be appropriate to educate trade association
about what the Agency or State would like to see in such a
program.

     Some trade associations are sources of useful and accurate
information and guidance on regulatory compliance.  Regions
and/or states can evaluate the quality of the information and, if
appropriate, disseminate this material on inspections, share it
with State Small Business Development Centers or Small Business
Assistance Programs.

     Similarly, larger dry cleaners, who are well-informed about
regulatory compliance issues, may be willing to mentor smaller,
less sophisticated cleaners.  This education can be undertaken as
part of a Supplemental Environmental Project  (SEP) in an
enforcement settlement, or it could be undertaken in an
innovative partnership with a Federal or State regulator, such as
EPA's Environmental Leadership Program (ELP)  (Contact: Tai-ming
Chang 202-564-5081).   One other innovative way to promote
compliance may be to require dry cleaners to attend dry cleaning
workshops that are periodically offered by trade associations or
State agencies rather than to pay a fine.  Currently, these
workshops are not well-attended.

     These innovative approaches to compliance assurance are not
sufficient, in and of themselves, to constitute a vigilant and
effective enforcement and compliance program.  Coupled with
traditional enforcement tools and more mainstream compliance
assurance activities, however, these projects can tap the
resources and expertise in the regulated community to leverage
government resources.

                               15

-------
 IV.  TASKS

      This compliance strategy identifies compliance assistance,
 compliance monitoring and enforcement activities.  Some of the
 activities have been completed while others  are ongoing or
 planned/proposed.   We have prioritized the latter category based
 upon each project's relationship to the OC mission, resources and
 each project's usefulness to the regulated community and other
 regulatory agencies.

 A.   Matrix of Tasks

      The tasks for the compliance strategy are listed below in a
 matrix that identifies the status of the task and the lead
 office.   A brief description of each task and its priority, if
 applicable,  follows.
Tasks
 IMPLEMENTATION TASKS  & RESPONSIBLE PARTIES

	           Office
Compendium of  Educational Materials
Communication  Strategy
Generic Dry Cleaning  Equipment
 Owner's Manual
Multi-media Inspection Manual
Multi-process  Wet Cleaning Project
Regulation Translations
Profile of Dry Cleaning Industry
Plain English  Guide for Perc Dry
 Cleaners
Satellite Training for Dry Cleaners

Certification  Program Review
Delegation to  States
Penalty Policy/Matrix
Plain Korean Guide for Perc Dry
     Cleaners
Plain Spanish  Guide for Dry
     Cleaners
Stakeholder Meetings
Stakeholders'  List

Dry Cleaner Inventory
Regional Teleconference
Supplemental Enforcement Projects
                             CCSMD
                             CCSMD
                             OAQPS

                             CCSMD
                             OPPTS
                             OAQPS
                             METD
                             CCSMD

                             OAQPS

                             CCSMD/OAQPS
                             Regions
                             ORE/Air
                             CCSMD

                             CCSMD

                             CCSMD
                             CCSMD

                             CCSMD
                             CCSMD
                             CCSMD
Status

Completed
Completed
Completed

Completed
Completed
Completed
Completed
Completed

Completed

Ongoing
Ongoing
Ongoing
Ongoing

Ongoing

Ongoing
Ongoing

Proposed
Proposed
Proposed
                                16

-------
B.  Description of Tasks

     1.  Completed Activities

Communication Strategy

     A vital part of the compliance strategy for the dry cleaning
industry is disseminating the information generated and collected
by the Agency.  An communication strategy delineates effective
methods of distributing the products of the tasks discussed
throughout this compliance strategy.  The products include: the
Plain English Guide for Perc Dry Cleaners, the Plain Korean Guide
for Perc Dry Cleaners, Multi-media inspection manual, and
compendium of educational materials.  This material could be
distributed through trade associations, Korean community
associations, perc distributors, dry cleaning vendors, dry
cleaning newsletters, Small Business Association, Section 507
compliance assistance visits, and meetings with industry and,
possibly through inspections.  Recipients would be targeted by
using the dry cleaning Stakeholders' List and Inventory.

     Estimated Date of Implementation:  FY1996

     Lead:  CCSMD

     Contact:  Fran Jonesi (202) 564-7043

     Priority:  High

Compendium of Educational Materials

     CCSMD has compiled a multi-media compendium of existing
educational environmental materials for the perc dry cleaning
industry.  Many public and private entities including
international and local trade associations. Federal and State
regulatory agencies, universities. Small Business Associations,
cooperative extension services, environmental advocacy
organizations, and other stakeholders have developed relevant
materials.  The compendium includes lists of informational
contacts, Regional and State activities, pamphlets, regulation
translations, regulation summaries, operator checklists,
inspections checklists, videotapes, and other resources.

     The compendium can be an effective tool in reducing the
effort spent on developing redundant educational materials, so
these efforts can then be spent on evaluating and distributing
materials and information.  The resources listed in the multi-
media compendium can be evaluated to ensure their accuracy,
ability to target special audiences (small business owners,
Koreans, Spanish-speaking owner/operators), readability and
effectiveness.  Also the compendium affords us the opportunity to
evaluate the linkage between Office of Compliance's national

                                17

-------
 efforts and the existing efforts by EPA Regions  and States.   The
 target audience of the compendium is the Regions,  States,
 entities providing compliance assistance, and other stakeholders
 searching for environmental information about the  dry  cleaning
 sector.  The Communication Strategy (described earlier in  this
 section)  addresses issues of distributing the compendium and
 information on other dry cleaning related projects.  CCSMD  has
 recently updated the information contained in the  Compendium.

      Estimated Date of Implementation:  FY1996

      Lead:   CCSMD

      Contact:  Doug Jamieson (202)  564-7041
               Joyce Chandler (20)  564-7073

      Priority:  High

 Generic Dry Cleaning Equipment Owner's  Manual

        OAQPS developed the Perchloroethylene Dry Cleaning
 Facilities  — General Recommended Operating and Maintenance
 Practices for  Dry Cleaning Equipment (EPA-4531R-94-073), issued
 October 1994,  as a compliance assistance outreach  tool for perc
 dry cleaners.   The NESHAP for perc dry  cleaners  required that
 owners  of dry  cleaning equipment and control devices follow  the
 manufacturer's  operation and maintenance instructions.
 Owners/operators  are also required  to  retain a  copy of the
 manufacturer's  instructions for  operation and maintenance  at the
 facility.

      OAQPS  recognized that some  dry  cleaners operate older
 equipment and may no longer have the manufacturer's instructions.
 They developed  this Generic Dry  Cleaning Equipment Owner's Manual
 for dry cleaners who,  after reasonable  effort, could not obtain  a
 copy of the manufacturer's instructions for their  specific
 equipment.

      Proper maintenance and operation of equipment can be  one  of
 the first and easiest steps to help  achieve compliance and
 undertake pollution prevention.   This compliance  tool,
 therefore,  will  serve multiple purposes.  This document will be
 included  in the  Compendium of  Educational Materials to be
 developed by CCSMD  and is  referenced in the Plain  English  Guide
 for Perc  Dry Cleaners.  The Owner's Manual was sent to the
Regions and trade associations.  It is available through the EPA
 library located  in Research Triangle Park,  NC.  Copies can be
 obtained by calling  (919)  541-2777.

     Estimated Date  of Completion:  Completed

     Lead: Office of Air Quality Planning & Standards

                               18

-------
     Contact:  George Smith (919) 541-1549

     Priority:  N/A

Multi-media Inspection Manual

     The multi-media inspection manual assists field personnel in
State, local and EPA Regional offices in understanding all the
environmental regulations that impact the perc dry cleaners.
This manual enables the regulators to perform multi-media
inspections and audits to determine the compliance status of
facilities.  The field personnel, in turn, can be more responsive
to the needs and questions of the regulated community.  The
inspection manual also covers other subjects directly related to
compliance and enforcement activities such as the CAA Section 507
policy, the EPA Policy on Environmental Audits , 60 Federal
Register 66706 (December 22, 1995) and inspection targeting
efforts.  The inspection manual and related training are useful
tools for field staff in performing multi-media audits and/or
inspections at dry cleaning facilities.

     Estimated Date of Implementation: Completed

     Lead:  CCSMD

     Contact:  Douglas Jamieson   (202) 564-7041

     Priority:  High

Multi-process Wet Cleaning Project

     The ultimate goal of the dry cleaning regulations is to
reduce and/or eliminate releases of perc into the environment.
One way a dry cleaner can comply with the regulation is by
reducing or eliminating his use of perc.  The investigation of an
alternative cleaning process may be the means of achieving
compliance in this manner.  The Office of Pollution Prevention
and Toxics (OPPTS) under the Design for the Environment (DfE)
program formed a partnership with the dry cleaning industry to
conduct a study comparing the cost and performance of an
alternative cleaning process for clothes that are typically dry
cleaned with perc.  The alternative process was an aqueous-based
cleaning process that relies on heat, steam, pressing and soap to
clean clothes.  The project involved a short term, high volume
test in November and December 1992, during which nearly 1500
garments were cleaned either by the traditional perc dry cleaning
process or the multi-process wet cleaning.  The results were then
evaluated by the dry cleaners and the customers.  DfE found that,
under certain circumstances, the wet cleaning process is
technically feasible and economically competitive with perc dry
cleaning.  Information obtained from this study may encourage
cleaners to use the wet cleaning process and, thus, reduce perc

                                19

-------
 usage and releases into the environment.   CCSMD will include the
 results of the "Wet Cleaning" study in the Compendium of
 Educational Materials.

      Estimated Date of Completion:   Completed

      Lead: Office of Pollution Prevention and Toxic Substances
                 (OPPTS)

      Contact:  Chad Jehassi  (202)260-8617

      Priority:  N/A

 .Regulation Translations

      One of the early tasks completed  by  OAQPS in developing the
 NESHAP perc dry cleaning regulation was a translation of its
 Federal Register notice  into other  languages.   The regulation was
 translated into Korean,  French,  Chinese,  Vietnamese and Spanish.
 OAQPS'  awareness of the  multi-cultural nature of the dry cleaning
 industry prompted them to provide a translation of the dry
 cleaning air regulation  to assist a large segment of cleaners.
 An estimated thirty percent of the  dry cleaners are Korean
 speaking and another significant portion  are  Spanish speaking.
 The other languages represent a  smaller share of the regulated
 dry cleaning community.   The Korean version of the regulation has
 been  the translation requested most often.

      While this task has been completed by OAQPS,  the Agency
 could also translate the RCRA, CWA  and SDWA regulations into
 other languages particularly Korean and Spanish.   CCSMD has
 translated the Plain English Guide,  containing multi-media dry
 cleaning requirements, into Korean.  In the future,  the Guide
 will  be  translated into  Spanish.

      Estimated Date of Completion:   Completed


      Lead:  OAQPS for Development
            Small Business Ombudsman Office for Distribution

      Contact:   George Smith (919) 541-1549
                Karen Brown  (703) 305-7015  Distribution

      Priority:   N/A

Plain English Guide for Perc Dry Cleaners

     To assist the perchloroethylene (perc) dry cleaners  in
complying with the various environmental regulations,  CCSMD has
developed a readable version of these requirements -   a Pl,ain
English Guide for Perc Dry Cleaners; A Step-by-Step Approach  to

                               20

-------
Understanding Federal Environmental Regulations.   We are
targeting this guidance at the small businesses which make up a
significant portion of the dry cleaning industry.   These
businesses may not ordinarily have the resources to read and
interpret the numerous and changing environmental  regulations in
the Code of Federal Regulations.  Although dry cleaning trade
associations keep their members abreast of regulations impacting
the industry, many of the smaller dry cleaners do  not belong to
these organizations. This guidance explains the environmental
requirements under the CAA, RCRA, SDWA, and CWA using a
comprehensive, step-by-step approach.  The Plain English Guide
also includes commonly asked questions and answers concerning the
regulations and their implementation and a quick reference
checklist of activities that an owner/operator may perform to
comply with the regulations.  CCSMD conducted a field test of the
Plain English Version with dry cleaners with input from the key
stakeholders.  The State of Minnesota has also used the document
in their compliance outreach efforts to the dry cleaning sector
and provided CCSMD with feedback from the dry cleaners.  The
details for distributing the final document are outlined in the
Communication Strategy.

     Estimated Date of Completion: Completed

     Lead:  CCSMD

     Contact:  Joyce Chandler (202) 564-7073

     Priority:  High

Profile of the Dry Cleaning Industry

     The Manufacturing, Energy and Transportation  Division (METD)
of the Office of Compliance has developed a series of notebooks
that profile different industrial sectors.  One of the sectors
featured is the dry cleaning industry.  The initial goal of the
project were to provide Federal and State regulators with more
knowledge of specific industrial sectors and their processes.
This goal was expanded; the Profile also serves as an
informational tool for the regulated and academic community.  The
notebook includes an environmental compliance profile based on
EPA database information.  CCSMD reviewed and commented on the
dry cleaning sector notebook and coordinated the external review.
The "review team" included a trade association, a state
representative and the EPA Design for the Environment program.
CCSMD helped METD identify the stakeholders to whom the notebook
should be distributed.

     Estimated Date of Completion: Completed

     Lead:  METD
                                21

-------
      Contact:  Greg Waldrip (202)  564-7024

      Priority:  METD - High  CCSMD - Medium

 Satellite Training for Dry Cleaners

      On May 12, 1992 the Tennessee Department of Environment,
 Tennessee Valley Authority,  UT Center  for Industrial Services,
 EPA's Office of Small Business Ombudsman, and OAQPS conducted a
 four hour satellite training course on the  perc air regulations
 that was broadcast live to down link sites  throughout the
 country.   The purpose of the broadcast was  to inform perc dry
 cleaners on strategies for compliance, risk reduction and
 pollution prevention.   Multiple down link sites nationwide
 minimized the travel cost for the  cleaners  who typically would
 not attend such a course because of the expense.  The training
 was interactive; the participants  were allotted time to call the
 panelist to ask questions.   OAQPS  has  made  a videotape version of
 the satellite training,  along with the written companion guide,
 available to States and local agencies.  These agencies have used
 this videotape as a compliance assistance tool by making it
 available to their dry cleaners.   Dry  cleaners can contact their
 State and local agencies for the videotape.  Others can purchase
 the two set videotape for $45 by contacting Jane Davis of the
 University of Tennessee at (615) 974-1313.

      Estimated Date of Completion:   Completed

      Lead:  OAQPS

      Contact:   Janyce  Riess  (919)  541-2353

      Priority:   N/A

      2 .   Ongoing Activities

 Certification Program  Review

     An informed dry cleaner is better able to comply with the
 requirements than a misinformed one.  Part of this compliance
 strategy  is geared towards supporting trade associations in their
 outreach  activities to educate their industry stakeholders.  In
 1994, the International Fabricare Institute (IFI)  offered an
 environmental certification  examination for dry cleaners.  IFI
 invited Office  of  Compliance and the Office of Air Quality
Planning  & Standards to represent EPA on an Advisory Committee
for the Environmental  Certification Program.  The Office of
Compliance provided advice to IFI by participating in a two-day
brainstorming session  that was held in October to discuss the
certification program.

     A program certifying the environmental knowledge of owners

                                22

-------
and operators of the dry cleaning business provides a means and
motivation for them to increase their knowledge and understanding
of the environmental requirements while augmenting compliance.
Currently certification programs for perc dry cleaners are
voluntary.  CCSMD will 1)  investigate which programs currently
exist and are being developed;  2) evaluate whether to assist/give
input to the burgeoning certification programs; 3)  assess whether
the Agency should give its stamp of approval to certification
programs; and 4) investigate whether CCSMD should develop a
certification program of its own, or in conjunction with DfE or
other EPA offices.

     Estimated Date of Completion: Ongoing

     Lead: DfE with CCSMD support

     Contact:  Joyce Chandler (202) 564-7073

     Priority:  Medium

Delegation to States

     Many compliance monitoring and enforcement activities are
performed by State and local regulators.  Under the CAA Section
112(1), States can be delegated the authority to enforce the dry
cleaning Air NESHAP.  "Each State may develop and submit to the
Administrator for approval a program for the implementation and
enforcement (including a review of enforcement delegations
previously granted) of emission standards and other requirements
for air pollutants subject to this section..."   EPA then has the
responsibility to review the plan for approval or disapproval
within a designated time.

     This delegation process is just beginning due to the recent
promulgation of the dry cleaning requirements.  CCSMD will
support the Regional Offices in their review of State
applications for delegated authority.  At this time, CCSMD has
reviewed and commented on California's proposal.

     Estimated Date of Completion: Ongoing task as State submits
                                        proposal

     Lead: Regions with CCSMD support

     Contact:  Joyce Chandler (202) 564-7073

     Priority:  Low

Penalty Policy/Matrix

     The Regions have requested that OECA issue a penalty policy
for violations of the CAA for the perc dry cleaning industry.

                                23

-------
 The general penalty policy for stationary source air emissions
 was developed when the regulated community consisted of  a limited
 number of large businesses with high revenues.   The newly
 regulated dry cleaning industry,  however,  consists  of a  large
 number of small businesses with low revenues.  The  Agency almost
 always has to reduce the civil penalty based on  the inability of
 these businesses to pay.   This inability  of small dry cleaners to
 pay penalties in general justifies  a penalty policy specifically
 for these small businesses.   OECA will incorporate  aspects of the
 Section 507 Enforcement Response Policy into the penalty policy.

      The Air Enforcement Division (AED) in the Office of
 Regulatory Enforcement (ORE)  received comments on their  draft CAA
 penalty policy for dry cleaners from the Regions. CCSMD  has
 solicited the support of the  RCRA Enforcement Division and the
 Multi-media Division in ORE to explore making the dry cleaning
 penalty policy a multi-media  policy.

      Estimated Date of Implementation:  FY1997

      Lead:   ORE-Air

      Contact:  Rhonda Maddox (202) 564-7026

      Priority:   ORE - High CCSMD - Low


 Plain Korean Guide for Perc Dry Cleaners

      Upon finalizing the  Plain English Guide for Perc Dry
 Cleaners:  A Step—by—Step  Approach to Understanding  Federal
 Environmental  Regulations (described in the Ongoing Activities
 section),  CCSMD has funded a  project to translate the document
 into  Korean.   Both the Korean and English  versions  of the
 document will  be field tested before distribution.  Details on
 distributing the document to  the  Korean dry cleaners  will be
 delineated  in  the Information Dissemination Plan (described above
 in this  section).   The glain  Korean Guide  for Perc  Dry Cleaners
 will  serve  as  an effective compliance assistance tool in OECA's
 outreach to the Korean dry cleaning  community.

      Estimated  Date of Implementation: early FY1997

      Lead:   CCSMD

      Contact:  Joyce Chandler  (202)  564-7073

     Priority:  High

Plain Spanish Version of Requirements

     Plans to translate the Plain English Version of  the

                                24

-------
Environmental Requirements for Perchloroethylene Dry Cleaners
(described in the Completed Activities section) into Korean has
been well received by the dry cleaning trade association,
regulatory agencies, and others conducting outreach activities to
the dry cleaning community.  CCSMD has received requests for a
Plain Spanish Version and thus will translate the document into
Spanish.  Details on distributing the document to the Spanish dry
cleaners will be delineated in the Information Dissemination Plan
(described above in this section).  The Plain Spanish Version of
the Environmental Requirements for Perchloroethylene Dry Cleaners
will serve as an effective compliance assistance tool in OECA's
outreach to the Spanish-speaking dry cleaning community.

     Estimated Date of Implementation: FY1997

     Lead:  CCSMD

     Contact:  Joyce Chandler  (202) 564-7073

     Priority:  High

Stakeholders' List

     Another goal of the compliance strategy is to compile a list
of stakeholders in the perc dry cleaning industrial sector.
Stakeholders are those who have a vested interest in the perc dry
cleaning sector.  Not only do the stakeholders include the owners
and operators of dry cleaning facilities contained in the dry
cleaners inventory described below, but they also include the
manufacturers and distributors of perc, trade associations,
Korean community groups, equipment vendors, small business
associations, and others.  By identifying all stakeholders and
understanding their concerns, we can develop a comprehensive
understanding of the industry and render better compliance
assistance. The stakeholder list will include the name of the
organization, the contact person, telephone number, address, and
function.  CCSMD has already started accumulating the names of
stakeholders as we work with the industry.

     Estimated Date of Implementation:  FY1995

     Lead: CCSMD

     Contact:  Joyce Chandler (202) 564-7073

     Priority:  Medium

Stakeholder Meetings

     CCSMD has been meeting with individual stakeholders of the
perc dry cleaning industry.  During these meetings, CCSMD informs
the stakeholder of OC's mission to assist the industrial sector

                               25

-------
 in complying with environmental regulations and to promote
 pollution prevention.   CCSHD and the  stakeholder discuss how the
 OC can further assist  the dry cleaning  sector with environmental
 concerns.   CCSMD has met with the International Fabricare
 Institute (IFI)  and toured their research facility. CCSMD has met
 with the Korean Drycleaners Association of Greater Washington to
 discuss potential compliance outreach projects for the Korean
 drycleaning community.   CCSHD will continue to hold face-to-face
 meetings with various  stakeholders in the future.

      Estimated Date of Completion:  Ongoing

      Lead:   CCSMD

      Contact:   Joyce Chandler (202) 564-7073

      Priority:   High

      3.  Future Activities

 Dry Cleaner Inventory

      A reliable inventory identifying the regulated community and
 its compliance status is  a critical tool for enforcement and
 compliance  assistance.  At this time, there is no reliable,
 accurate list  of perc dry cleaners since perc dry cleaners are
 often small businesses/generators/sources/users not captured
 under regulatory reporting and other requirements.  Currently,
 EPA estimates  that  the number of perc dry cleaners ranges from
 25,000 to 35,000 nationwide.   These estimates are based on data
 from the census  bureau, trade associations, perc distributors,
 equipment vendors,  and others. A reliable inventory will narrow
 down the estimates  and provide EPA with a more accurate list of
 dry cleaners who can be targeted for compliance activities.

     As  a first  step, we will access the RCRIS, Toxic Release
 Inventory  (TRI),  the PCS,  the AIRS and other EPA databases to
 identify perc dry cleaning facilities.  These databases will
 likely contain  information on only the largest dry cleaning
 facilities.  To  identify the  thousands of smaller dry cleaners,
we will  verify the  initial notification reports submitted to the
Regions  in June  1994 as required by the NESHAP regulation.  Once
we have  developed a  comprehensive inventory,  it will be made
available to OAQPS, Regions,  States and local governments as a
compliance tool  for  identifying the regulated community.

     Estimated Date of Implementation: FY1996

     Lead:  CCSMD

     Contact: Joyce Chandler  (202) 564-7073


                                26

-------
     Priority:  High

Regional Teleconference

     One of the goals of the compliance strategy is to build an
effective network within the Agency to supply compliance
assistance to the dry cleaning sector and State regulating
agencies on a multi-media basis.  This will be accomplished by
establishing a group of knowledgeable individuals throughout the
Agency in Headquarters and the Regions who will hold a regular
teleconference to discuss and resolve compliance and enforcement
issues affecting the dry cleaning industry.  The teleconference
calls will held begin in the upcoming months.

     Estimated Date of Implementation:  Ongoing

     Lead: CCSMD

     Contact:  Joyce Chandler (202) 564-7073

     Priority:  High

Supplemental Environmental Projects

     CCSMD will investigate possible Supplemental Environmental
Projects (SEPs) for EPA settlements with dry cleaning
stakeholders and discuss with ORE-Multi-Media whether these SEPs
should be included in the National SEP database.  ORE-Multi-Media
is developing a National SEPs Data Base for various sectors.  The
data base will be a compilation of recent SEPs and will include
information on violations, estimated cost, technical details and
the expected environmental impacts of the projects.  It will
contain guidance on selecting and implementing a SEP and model
language for settlements. SEPs are environmentally beneficial
projects which a defendant agrees to undertake in settlement of
an environmental enforcement action, but which the defendant is
not otherwise legally required to perform. The information
contained in the database will be made available to the Regions
and States.

     One possible future project is to promote broader
implementation of water pretreatment programs for dry cleaners.
CCSMD will evaluate the pretreatment program in California that
regulates dry cleaners and will consider how the principles of
the California program can be transferred to other entities.  We
will also work with DfE on incorporating pollution prevention
options into SEPs.

     Estimated Date of Implementation:  Future

     Lead:  CCSMD/ORE-Multi-media


                                27

-------
     Contact: Joyce Chandler (202) 564-7073 CCSMD
              Jerry Kraus (202) 564-6047 ORE-Multi-media

     Priority:  Low


V.  CONCLUSION

     This compliance strategy responds to the various
environmental issues currently presented by the perc dry cleaning
industry.  The strategy will continue to evolve as we learn more
about the industry and how to better assist it in its compliance
needs.
                               28

-------
              Key Stakeholders-Dry Cleaning Sectoy

ACTWU
Health and Safety Department
15 Union Square
New York, NY 10003
Contact:  Mr. Eric Frumin
PH: 211/242-0700  FX: 212/255-7230

Consumer Policy Institute
101 Truman Avenue
Yonkers, NY  10703
Ms. Barbara Warren
PH: 914/378-2455  FX: N/A

The Dow Chemical Company
2020 Dow Center
Midland, MI 48674
Contact: Ms. Janet C. Hickman
PH: 517/636-0465  FX: 517/636-8933

Environmental Protection Agency
Design for the Environment
401 M Street, SW
Washington, DC 20460
Contact: Mr. Ohad Jehassi, Mail Code 7406
PH: 202/260-6911  FX: 202/260-0981

Environment Canada
Great Lakes Environment Office
25 St. Claire Street, East
Toronto, Ontario M4T1M2  CANADA
Contact:  Mr. Marcus Cinder
PH: 416/973-1162  FX: 416/973-7438

Greenpeace
1017 West Jackson Boulevard
Chicago , IL  60607
Contact: Ms. Bonnie Rice
PH: 312/666-3305  FX: 312/226-2714

Halogenated Solvents Industry Alliance
2001 L Street, NW
Washington, DC  20036
Contact: Mr. Peter Voytek
PH: 202/775-2790  FX: 202/775-722

International Fabricare Institute
12251 Tech Road
Silver Spring, MD 20904
Contact: Ms. Mary Scalco
PH: 301/622-1900  FX: 301/236-9320

                                29

-------
 The Johnson Group
 8044 Montgomery Road,  Suite 170
 Cincinnati, OH 45236
 Contact:  Ms. Janet Grove
 PH:  513/891-4551
 FX:  513/985-5464

 The Korean Drycleaning Association of Greater Washington
 13840-A Braddock Road
 Centerville, VA 22020

 The Korean Drycleaning Times
 145  Madison Avenue,  6th floor
 New York,  NY 10016
 PH:  212/545-1815
 FX:  212/545-1386

 Langley Parisian
 P.O.  Box  91128
 Hamilton,  Ontario L8N  4G3   CANADA
 Contact: Mr.  K.C.  (Ken)  Adamson
 PH:  905/522-4651
 FX:  905/529-5956

 National Federation  of Korean Dry  Cleaners
 5901 Eastern Avenue
 Hyattsville,  MD   20703
 Contact: Mr Joseph Yoon
 PH:   301/559-1323
 FX:  N/A

 Neighborhood Cleaners  Association
 252 West 29th Street
 New  York,  NY 10001
 Contact: Mr.  William Seitz
 PH:  211/967-3002
 FX:  221/967-2240

 Occupational  Health  Foundation
 1126  16th  Street,  NW,  Suite 413
 Washington, DC  20036
 Contact: Mr.  Charles Austin
 PH: 202/887-1980
 FX: 202/887-0191

R.R. Street & Company
 184 Shuman Boulevard
Naperville, IL  60563
Contact: Mr. Manfred Wentz
PH: 708/416-4244
FX: 708/416-4150
                                30

-------
Toxics Use Reduction Institute
University of Massachusetts, Lowell
1 University Avenue
Lowell, MA  01854-2851
Contact: Ms. Jodie Siegel
PH: 508/934-3275
FX: 508/453-2332

The Key Stakeholders List consists, in part,  of the core
workgroup members from EPA's Design for Environment program.
                                31

-------