v>EPA
            United States
            Environmental Protection
            Agency
            Office of
            Research and Development
            Washington DC 20460
EPA 600/8-78-003
April 1978
Laboratories Needed
to Support
Long-Term Research
in EPA
            A Report to The President
            and The Congress

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         LABORATORIES NEEDED TO

SUPPORT LONG-TERM EXPLORATORY RESEARCH

                IN THE

 U.S. ENVIRONMENTAL PROTECTION AGENCY
       A Report to the President
           and the Congress
            March 31, 1978

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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                           WASHINGTON, D.C.  20460
                                 5  APR 1978
                                                                 THE ADMINISTRATOR
The President
Speaker of the House of Representatives
President of the Senate
Dear Sirs:
      In accordance with Section 6(b)  of Public Law 95-155,  the Environmental
Research, Development and Demonstration Act of 1978, I herewith submit a
report on laboratories needed to support long term research in the
Environmental Protection Agency.  The report examines alternative approaches
for conducting long term environmental research and presents eight findings
and recommendations.  Strengthening our long term activities is an important
part of our overall research strategy in EPA and I endors^the recommendations
contained herein.
                              Sin/edely
Enclosure
                                ill

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                              CONTENTS


Section                                                           Page


  1          Summary                                               1

  2          Findings and Recommendations                          2

  3          Introduction                                          5

  4          Study Objectives and Approach                         7

  5          Research and Development in EPA

                . History                                         10
                . The Research and Development Process            11
                . Resource Trends                                 13

  6          Areas Needing Enhanced Exploratory Research          18

  7          Laboratory Mechanisms Used by Other Agencies         28

                  Extramural Mechanisms                           30

                   . Individual Grants and Small contracts        31
                   . University/Institutional Centers             31
                   . Government-Owned, Contractor-Operated        33
                       Centers
                   . General                                      34

  8          Options for Conducting Exploratory Research          35

                  Separation or Integration of Exploratory        36
                    Research and Regulatory/Operational
                    Support Research and Development

                  Separation or Integration of Intramural         37
                    and Extramural Exploratory Research
                    Activities

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                              CONTENTS


Section                                                           Page

                  Geographical Consolidation of Intramural         38
                    Exploratory Research Laboratories

                  Extramural Exploratory Research Options          38

  9          Bibliography                                         41

 10          Appendices:

                  A.   Office of Research and Development           43

                  B.   Examples of Exploratory Research Advances    47
                                   VI

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                              1.  SUMMARY
    This report examines alternative laboratory approaches by which the U.S.
Environmental Protection Agency  (EPA) could conduct long-term environmental
research.  The report was prepared in response to a congressional request
contained in Public Law 95-155 Sec. 6(b) of EPA's Research and Development
Act of 1978.  To prepare the report, more than 100 scientists and managers
in 20 agencies and laboratories were interviewed, and numerous persons
within EPA were contacted.  The Science Advisory Board of EPA partici-
pated in all phases of report preparation.

    Four subject areas are treated in the report.  The first area is EPA
history which reviews how present laboratories were formed, discusses the
research and development  (R&D) within the Agency, and presents evidence
that long-term exploratory research is being conducted by EPA.  The second
subject deals with areas that need enhanced exploratory research and pre-
sents a brief review of 11 representative research areas that could benefit
from enhanced long-term support. The third subject area consists of mechan-
isms used by other agencies. Advantages and disadvantages are discussed of
four mechanisms for conducting long-term research—individual grants and
contracts, Federal contract research centers, university or other private
centers, and Federal laboratories.  The fourth and final topic discusses
options for conducting long-term exploratory activities within EPA.

    The report presents eight findings and recommendations.  Each is aimed
at improving the mechanisms and climate for conducting long-term exploratory
research in EPA.

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                  2.   FINDINGS AND RECOMMENDATIONS
 1.  Finding;   Contrary  to  some  perceptions,  exploratory (long-term)  research
 is  an  ongoing,  important component of  EPA's  current research program.

    Exploratory research,  however,  is  not  a  sufficiently visible  component  of
 EPA's  present  R&D program.  Based  on definitions contained within the  report
 and other  criteria  used by EPA  laboratory  director's,  approximately  30% of
 the FY-1977 base (non-energy) R&D  budget was estimated to be in the
 exploratory area.

    Recommendation;  Ongoing exploratory research should be  continued  and
 budgeted as an identifiable program.   An office  of exploratory  research
 should be  established to serve  as  a visible  focal point for  coordinating
 such activities and  for managing basic and anticipatory research  activities.
 Responsibility for  implementing exploratory  activities should rest primarily
 with existing  EPA research and  development laboratories.

 2.  Finding;  The nature of exploratory research is such that it  must  be
 integrally linked to applied research  efforts at the laboratory level.  At
 all the institutions visited, it was noted that  the cc—existence  of  explora-
 tory and applied activities in  one  laboratory strengthened and  stimulated
 both types of programs.

    Recommendat ion;  Exploratory research  activities should  generally  be
 conducted  by institutions  that  can  optimize  the  link between exploratory
 and applied programs.   Exploratory  programs  should not be geographically or
 intellectually  isolated.

 3.  Finding;  Research  gaps are present within EPA's exploratory  activities.
 (Section 6 presents  a representative list  of  research  areas  in  EPA that would
 benefit from enhanced support for exploratory activities.)   EPA's activities,
 however, represent less than one-fifth  of  the total  Federal  R&D expenditures
 for the environment  and natural resources.  The  fraction of  long-term  research
 activities conducted by agencies other  than EPA  is presently unknown.  Addi-
 tionally,  there are  few mechanisms which can  address all the needs for
 coordination of  long-term R&D between EPA  and other  agencies and  laboratories.

    Recommendat ion;  Both  intramural and extramural  exploratory research
 should be expanded selectively  to complement  existing  EPA and other  Federal
 activities.  Expansions should  take place  only after examining  opportunities
 for internally  shifting resources to exploratory  activities.  An  examination
of exploratory R&D across the Federal government  should be undertaken  and the
R&D pertinent to EPA problems should be identified.  Exploratory  research

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directed at problems which may eventually require regulatory actions should
have better coordination.  EPA will have to develop mechanisms to match its
specific needs. Mechanisms such as the Interagency Regulatory Liaison Group
and the use  of the lead agency concept in conjunction with pass-through
funding, should be increasingly utilized.


                     Other elements for improved coordination should include:

                     1) Broad annual program planning and accomplishment
                        meetings for all related Federal activities.

                     2) Program planning meetings dedicated to specific
                        research areas between pertinent Federal agency
                        managers.

                     3) A series of scientific workshops by all EPA labora-
                        tories and extramural centers on specific research
                        areas.  Workshop funds should be built into the
                        budget of each laboratory and center.


4.  Finding;  Many of EPA's intramural research laboratories have unique
talents and facilities and have received peer recognition for their ex-
ploratory research contributions.  Often these activities have not received
sufficient recognition within the Agency since good performance was often
equated with the ability to provide short-term solutions for regulatory
purposes.

    Recommendations;  The use  of personnel exchanges,  sabbaticals,
and other mechanisms should be encouraged as a means of assuring vitality
to exploratory projects, but only when not detrimental  to long-term acti-
vities.  Internal scientists should be encouraged to publish in scientific
and technical journals on a regular basis.  Mechanisms  to reward outstanding
achievements by individual scientists should be developed.

5.  Finding;  The nature of exploratory research  is such that it  is
strengthened and enhanced by a critical scientific and  technical review
process.

    Recommendat ion;  A peer review process is particularly  important
for this type of research.  A peer review process for ongoing activities
should be established throughout ORD for both intramural and extramural
exploratory research activities.

6.  Finding;  Exploratory research problems are diverse and require a
wide variety of talents.  Many sources of such expertise exist throughout
the country in the form of Federal laboratories,  university centers,
Federal contract centers, and other institutions.  These sources can be
utilized along with  internal EPA laboratories to  fill research gaps
and to conduct an expanded exploratory research activity.

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    Recommendation:  In  the near term, EPA should draw upon and utilize
existing  institutional resources as one method of filling research gaps.
Approximately  five  to ten centers of expertise should be supported pri-
marily  at existing  institutions with specialized expertise.  New centers
should  be established only when unique circumstances are present.  Approxi-
mately, $500,000  to $1 million will be required annually to support  each
center.   A large  Federal Contract Research Center for long-term research
should  not be  established solely to support  EPA activities at  this time.
Such  a  center  would delay opportunities to utilize  existing centers  parti-
cularly those  in  the Department of Energy. No new legislation  would  be
required  to implement this recommendation.

7.  Finding;   This  study has concentrated on activities pertinent to EPA's
mission.   However,  man is exposed to harmful substances through many sources
—the natural  environment, the work place, food and other consumables.
It  is apparent that the  need to assess total exposure from all sources  is
expanding rapidly.

    Recommendat ion;  In  the long-term, activities may be needed to address
a broader and  expanded number of environmental, occupational,  and consumer
problems  on an integrated basis.  Activities of this type may  require a
research  capability beyond that of existing  institutions.  A new institu-
tional mechanism  significantly larger than those required solely for EPA's
mission may be necessary in the future.  New relationships with private
sector  research laboratories may also need to be explored.  These trends
should be monitored  and  associated research  needs documented.  Further
consideration  should be  given to a new and expanded institutional mechanism
at a  later  date.

8.  Finding;   Exploratory research requires  a stable fiscal and managerial
atmosphere  to  be productive.

    Recommendation:   The Assistant Administrator for R&D in consultation
with  the Administrator and other Agency officials should define the  resource
level for exploratory research within the  ZBB process.  Stable funding
should be provided to assure research continuity over long periods.
Competition for resources should occur within the exploratory  research
category.

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                        3.   INTRODUCTION


    EPA was established to protect the environment and the American public
against possible threats posed by physical, chemical, and biological agents.
To pursue this mission, EPA (1) establishes criteria, standards, and guide-
lines to control environmental pollutants; (2) takes enforcement actions to
ensure compliance with the Agency's regulatory actions; and (3) maintains
monitoring programs to assess changes in pollution levels and emissions
over time.  In addition, the Agency provides support for municipal treatment
facilities, and for State and other environmental progams.  A significant
input to all major Agency decisionmaking in these areas is the quantity and
quality of its scientific and technical information.  Congress has recognized
this need for information and the important link between research and regu-
latory functions by authorizing EPA to conduct Research and Development
through the 11 different acts.  The Office of Research and Development (ORD)
is the EPA unit specifically charged with conducting most of the Agency's
research under these legislative mandates.

    In carrying out its responsibilities, ORD has recognized a need to
balance near-term research objectives in support of regulatory and opera-
tional programs with longer-term objectives to stimulate advances in the
environmental sciences. From its inception, however, EPA has been driven
by legislation to meet short-term regulatory deadlines.  These regulatory
responsibilities along with limited resources have created an atmosphere
that requires, a significant portion of the R&D program to be oriented
toward short-term regulatory problems. Long-term activities, though impli-
citly considered important, have not received sufficient recognition.  This
problem has been identified in two different studies: one by the National
Academy of Sciences (NAS)  [see Section 9, Bibliography, Item number 18] and
the other by Congress Office of Technology Assessment  (OTA) [see Section 9,
Bibliography, item number 19].

    The Senate Committee on Environmental and Public Works, which shares.
these concerns, included in the FY 1978 Research Development Authorization
Act a requirement for EPA to report to the President and the Congress con-
cerning the desirability and feasibility of establishing a national environ-
mental laboratory or system of laboratories to assume or supplement long
term environmental research.  Specific recommendations are requested on:

    •   types of research to be carried out by such laboratories;

    •   coordination and integration of research to be conducted by such
        laboratories with research conducted by existing Federal or other
        research labs;

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    •   methods for assuring continuous long-range funding; and

    •   other administrative or legislative actions necessary for establish-
        ing such a laboratory.

    This report has been prepared in direct response to this Congressional
request.

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                  4.  STUDY OBJECTIVES AND APPROACH


    The major objective of this study is to examine the need and feasibility
of establishing  a single laboratory or network of laboratories for conduct-
ing long-term or exploratory environmental research.  For the purposes of
this study, a laboratory or system of laboratories was interpreted to
include (1) development of in-house expertise within ORD's existing labora-
tory system; (2) creation of new government owned, contractor operated
research centers (GOCO) or utilization of existing ones;  (3) development
of university centers of expertise or utilization of existing ones; and (4)
use of individual grants and contracts specifically aimed at conducting
exploratory environmental research.

    This study aims to determine which of these mechanisms  is most appro-
priate for conducting exploratory environmental research  in EPA.  Such a
mechanism should be tailored to the ongoing and future exploratory environ-
mental research efforts in the Agency.  It should also be a mechanism that
can function within the framework of the Agency's organizational structure
without violating any legislative or institutional constraints placed on EPA.
As a result, the following tasks were undertaken:

    •   Quantification of the exploratory research currently being conducted
        in ORD and identification of gaps where future ORD exploratory
        research should focus.

    •   Analysis of the advantages and disadvantages of various mechanisms
        for conducting exploratory research.

    •   Recommendations as to the appropriate mechanisms  for EPA in light of
        current and future exploratory research activities  and legislative,
        organizational, and  institutional considerations.

    To prepare this study, the Acting Assistant Administrator for Research
and Development, Dr. Stephan Gage, formed a task force of EPA scientists and
managers in October 1977.  Members of the task force were selected because
of their widely varied backgrounds.  They included persons with experience
in EPA, its predecessor agencies, other agencies such as NASA and AEC, and
industry and university research programs. Selections were  also based on
experience with problems  in a number of different environmental media and
in several scientific disciplines. One member of the task force was also a
staff member of EPA's Science Advisory Board.  The task force used interviews
and questionnaires as the principal devices to gather data  in the support of
the above tasks.

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    For  the  first  task,  (quantification of current EPA exploratory research),
working  definitions of basic, anticipatory, and  exploratory  research were
developed  in consultation with EPA's Science Advisory Board.  These defini-
tions were incorporated  into a questionnaire forwarded to ORD's 15 labora-
tory directors.  The questionnaire  specifically  requested each laboratory
director to  make a major division of his  laboratories activities  into
either exploratory research or regulatory/operational support R&D.  Within
each major category, a designation  concerning  the funds dedicated to inhouse
and extramural efforts was also  requested.  These data were  later used as
one measure  of the applicability of each mechanism available to EPA for the
conducting of exploratory research  and  development.  Additional questions,
including  a  request to identify  research gaps, are presented in Figure 1.

    For  the  second task analyzing the advantages and disadvantages of current
mechanisms used (by the government  for  exploratory research), in-depth
interviews were conducted with key  officials in  relevant government agencies,
private  research institutions, and  universities. These interviews focused
specifically on (1) determining  examples of successful long-range research
efforts, (2)   determining the management structure associated with each
successful mechanism, (3) estimating the level of resources  required to
sustain  each mechanism, and (4)  determining the  potential applicability of
each laboratory system to the exploratory research efforts of EPA.

    Achievement of the first two tasks  laid the  foundation for the third
(recommendations on exploratory  research).  It was recognized that any
recommendation must reflect a consideration of EPA's operational  con-
straints.  The senior staff in EPA  headquarters  and ORD laboratories were
thus interviewed to identify organizational, institutional,  or legislative
constraints  that could conceivably  affect the viability of candidate
exploratory  research mechanisms.

    The  results from this round  of  interviews and the first  two tasks were
then consolidated  to arrive at the  findings and  recommendations presented
in this  report.

    Finally,   it must be noted that  assembling quantitative data for this
type of  study is extremely difficult.  Hence the findings presented in
the report flow primarily from subjective judgments rather than vigorous
quantitative  analyses.  Also,  the short time period allowed  for the report
precluded  in-depth examinations  of  the  scientific programs conducted by
the many agencies and institutions  contacted during the study.  No judgments
were made about the quality of the  science associated with each institution.

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1.  What is the existing research mix within your laboratory, i.e., between
    in-house (long-term, fundamental and anticipatory research and direct
    research in support of regulations)  and extramural (long-term, funda-
    mental, and anticipatory research and direct research in support of
    regulations) research?


                           FY 1977 ($ and MY)

        In-house Total                          Extramural Total

    a.  Long-term/Fundamental/              a.  Long-term/Fundamental/
        Anticipatory Research                   Anticipatory Research

    b.  Research in Direct Support          b.  Research in Direct Support
        of Regulations                          of Regulations

2.  What are the essential ingredients that should be considered  in developing
    a long-range fundamental research activity?

3.  What are the unique circumstances at your lab that would drive you
    to pick a particular extramural laboratory system and corresponding
    management approach?

4.  If you were directing ORD, what type of management system would you
    utilize in a fundamental research program in planning and allocating
    resources, reviewing proposals, and monitoring projects?

5.  What environmental long-term fundamental research gaps exist  that
    should be addressed by ORD's existing labs or supplemented by an
    expanded national laboratory system, i.e., Federal Control Research
    Center's University Centers, etc.?
              Figure 1.  Questionnaire  for ORD Lab Directors

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                  5.   RESEARCH  AND  DEVELOPMENT IN EPA
 History

     EPA was  created  in December  1970  by Executive Order No  3.  This order
 assigned  to  the  new  agency  the major  environmental  regulatory components of
 five separate Federal  agencies.  These  components included  30 laboratories
 and  field sites, many  of which formed the nucleus   of  the research and
 development  organization of the  new agency.  Typically, the staffing and
 facilities of these  laboratories were structured to provide the scien-
 tific and technical  support required  for implementation of  specific,
 single-media-oriented  environmental laws. There were very few intermedia
 activities,  and  the  long-term and anticipatory research was not a signifi-
 cant ingredient  of the program.

     In the past  7 years, ORD has made a continuum of changes in attempting
 to integrate the diverse elements of  previous groups into a balanced organi-
 zation to support the  Agency in  implementing existing  laws  and to provide
 research  to  guide the  development and formulation of new environmental
 policies, legislative  initiatives, and  regulatory actions.   From its
 inception ORD recognized that its research functions should include a broad
 responsibility to conduct research programs of an exploratory and long term
 nature.   But, the legislation of the  early seventies created significant
 demands for  scientific and  technical  information to support development of
 regulations  and  enforcement  actions.  Programs directed at  filling short
 term regulatory  needs  clearly required  priority during these years.

     Today, ORD is made up of a headquarters staff and 15 laboratories.
 (Appendix A  provides a description of the present ORD).  The director of
 each  laboratory  reports to  the Assistant Administrator for  Research and
 Development  through one of  the four following Deputy Assistant Admini-
 strators' Offices:

                   -Health  and Ecological Effects
                   -Air, Land, and Water Use
                   -Energy,  Minerals, and Industry
                   -Monitoring and Technical Support


ORD  includes approximately 1,700 permanent personnel positions and adminis-
 ters  a budget of approximately $320 million per year.  The  staff includes
 some  60 different professional disciplines.  Program resources, as described
 later  in  this chapter, are balanced between short-term regulatory requirements
 and  longer-term needs  in proportion to  the primary functions of the above
offices.


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    In fiscal 1979, this program will represent only one-fifth of the Federal
efforts on basic and applied environmental and natural resources research
(see Section 9, Bibliography, Item 19).  Thus there is growing recognition
that EPA must utilize the research expertise and results available in other
agencies and must develop mechanisms to accomplish this need.

    EPA has taken this charge seriously and has signed numerous interagency
agreements aimed at utilizing the capabilities of other agencies. One of the
most successful experiments to date in interagency coordination has been the
Federal Interagency Energy/Environmental Research and Development Program.
This program, which was launched in 1974, has involved 17 Federal agencies
cooperating under EPA leadership.  Funding for the program has averaged about
$100 million per year from fiscal 1975 on.  Another more recent example is the
cooperative effort of Administrator Costle, and the heads of the Occupational
Safety and Health Administration, the Food and Drug Administration, and the
Consumer Product Safety Commission.  Under their leadership, an interagency
regulatory liaison group was formed to maximize the coordination of regulatory
and other activities within each agency.  This group has already begun sharing
information on ongoing research projects, initiating joint research planning,
and acting to assure the transfer of research results.  In the future, inter-
agency cooperation of this type will continue to represent an important
responsibility of EPA.

The Research and Development Process

    The language adopted in the Environmental Research Development and
Demonstration Act of 1978 indicates that Congress recognized that all EPA
research and development programs have some inherent long-term components.
In fact, research and development activities, whether  in EPA or other insti-
tutions are all on a continuum wherein various stages cross-fertilize and  link
with one another.

    In the Defense Department, these stages are known as research, develop-
ment, testing and evaluation (RDT&E).  In other agencies, the terms, "basic",
"applied", and "development activities" are utilized.  Regardless of the
terminology, it  is important to recognize that these various research and
development activities cannot be arbitrarily separated, but must be closely
tied to each other.  It is rare that basic research, beginning in isolation,
produces results that applied R&D activities utilize in a seguential fashion.
More often, the need for advances in basic understanding is perceived by
applied programs, and this need is translated into  increased basic research
activities.  The flow of ideas and results is an iterative process.  It
involves the amalgamation of new facts with old ones and a resynthesizing  of
the whole.  At the laboratory scientist level, the  applicability and ultimate
use of much basic research may at times remain obscure.  But there is always
the possibility that any discovery may become the life blood of applied
mission programs.
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    In EPA, R&D activities are grouped  into  three categories, which are
defined as follows:

    a.  Exploratory R&D:  Research conducted primarily to develop funda-
        mental knowledge applicable to  the solution of currently intractable
        problems or scientific questions; or, research aimed at identifying
        or understanding environmental problems that are on the horizon but
        for which no specific regulatory activity is currently scheduled.

    b.  Regulatory/operational support R&D:  Research done in response to
        identified program or regional office operation requirements; or,
        research designed to enhance or confirm agency, program, or regional
        objectives but not immediately required in support of scheduled
        regulatory actions.  This type of R&D also includes technical
        assistance support services in response to ad hoc needs or special
        requirements that cannot be planned through the normal planning
        cycle.

    c.  Assigned mission R&D:  Research performed in response to missions
        specifically assigned to EPA by the White House, Congress, or
        Office of Management and Budget beyond the general requirements
        of the Agency's enabling legislation.  (Examples include the
        Interagency Energy/Environment Program and the Biological and
        Climate Effects of Radiation Program—BACER.)

    In this context, the principal components of exploratory research are
defined to include basic environmental, anticipatory,  and applied research.

    Basic Environmental Research.  Basic environmental research is conducted
    primarily to develop new environmental knowledge and principles.  It
    is not usually directed at a specific environmental problem; rather,
    it seeks new laws and understanding that can be used to define and
    predict the relationship between environmental factors and physical,
    chemical, and biological phenomena.  Basic environmental research is
    not usually conducted in support of a specific regulatory action, but
    it does serve as the basis of scientific knowledge to be employed by
    applied research programs that support the Agency's mission and as a
    source of information for anticipatory research activities.  Basic
    environmental research objectives may not always be well-defined, and
    the applications may be difficult to predict.   The activities usually
    take considerable time, but the specific length of time needed for a
    project is difficult to predict.   (In this context,  basic environmental
    research does not include research that is directed solely toward
    advancing the state of knowledge in a specific discipline such as
    mathematics,  but it does include research in a single discipline that
    is relevant to the mission of the Agency.)

    Anticipatory Research.  Anticipatory research identifies or charac-
    terizes a problem on the horizon that may be only  faintly perceived
    and for which no specific regulatory decision or action is planned.
    It is aimed at determining whether or not something should be done


                                     12

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    to avoid a crisis, and whether a more formal research effort should
    be established.  Anticipatory research includes the analysis of emerg-
    ing industrial, agricultural, transportation, and urban trends; forecasts
    of significant environmental insults; and investigations of the nature
    and scope of environmental problems.  This research may ultimately result
    in the establishment of a regulatory support research and development
    program.  The time necessary to conduct this research varies but the
    horizon the activities are scanning will be long-term.

    Applied Research  (Advanced Concept Development).  Applied research
    explores the feasibility and utility of basic research results.  It
    extends basic results into pilot efforts to test, develop, and confirm
    concepts and tools under different conditions.  The time frame for
    conducting this effort, is uncertain but more predictable than for
    basic research.  Applied research links basic activities to applied
    regulatory support research and development oriented studies.

    For the purposes of this report, the universe of activities correspond-
ing to the congressional long-term program includes all exploratory research,
whether it is basic, anticipatory or applied. The long-term program also
includes all activities in the regulatory/operational support R&D category
that require long periods of time or span a broad time horizon. A broader
scientific definition of exploratory research has thus been adopted for the
purposes of this study.  Note that EPA's programs are not presently budgeted
by these categories.

Resource Trends

    A history of ORD resources for the past 7 years  is shown  in Table 1.
Funding for core activities (except for energy related research) has remained
relatively stable in recent years.  The number of personnel positions has de-
clined, but the workload has increased across ORD.  Total funds per authorized
position have more than doubled from fiscal 1973 to  fiscal 1977.  The result
is a trend toward reduced intramural programs and  increased extramural con-
tract and grant activities.

    Exploratory research estimates for fiscal 1977 for each major program
office and associated laboratory are presented in Table 2.  Exploratory
resource levels were estimated by each laboratory director, based on the
previously presented definitions of exploratory research and  regulatory/
operational support R&D.  In all cases, judgments were required about the
applicability of the research activities to presently planned regulatory
actions, the length of time required to conduct the  research, and the nature
of the research.  Table 2 indicates that all laboratories and all principal
research offices are presently conducting some exploratory research.  This
effort is significant and exceeds early perceptions  about the amount of
exploratory research conducted by ORD.  It also requires a further elabora-
tion of how these estimates were derived.
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                              Table 1.    HISTORICAL TREND OF ORD RESOURCES
               FY-71     FY-72     FY-73       FY-74      FY-75       FY-76      FY-77     FY-78**

Total New    01,764.0  123,437.3  129,807.1  144,320.9  282,444.2*  252,423.6  241,949.4  245,666.1
Obligational
Authority
(in thousands
of dollars)


Authorized     1379      1705      1914        1814       1750         1750       1727       1729
Personnel
*$134,000 Energy/Environment program added
**FY-78 Carter Budget

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 Table 2.  FY-77 EXPLORATORY RESEARCH FUNDS BY ORD
PROGRAM OFFICE AND LABORATORY  (EXCLUDES ENERGY FUNDS)

                   ($K)
                   Total            Total         % of
           Exploratory Research     $ (K)  Exploratory Research
                                                 19%
                                                 10%
                                                 19%
                                                  0
                                                 11%
                                                 29%
                                                 20%
                                                  0
                                                 19%
                                                 69%
                                                 30%
                                                 51%
                                                 21%
                                                  0
                                                 42%
                                                 40%
                                                 11%
                                                 68%
                                                 25%
                                                 37%
                                                 38%
                                                  0
                                                 34%

                                                  0

                                                 31%
Office of Monitoring
EMSL - RTF
EMSL - CINC
EMSL - LV
HQ - OTHER
TOTAL
and Technical Support
$ 1,016
550
1,724
—
2,740
$ 5,221
5,611
9,065
5,169
25,067
Office of Energy, Minerals and Industry
IERL - RTF
IERL - CINC
HQ - OTHER
TOTAL
Office of Air, Land
ESRL - RTF
MEPL - CINC
ESRL - Athens
ESRL - Ada
HQ - OTHER
TOTAL
Office of Health and
HERL - RTP
HERL - CINC
HERL - Corvallis
HERL - Duluth
HERL - Narragansett
HERL - Gulf Breeze
HQ - OTHER
TOTAL
Other
ORD Total
1,320
1,500
—
2,820
and Water Use
11,642
5,774
3,925
1,320
—
22,661
Ecolgocial Effects
9,291
950
5,271
1,550
1,280
1,074
	
19,416
	
$ 47,637
4,426
7,561
2,516
14,504

16,946
19,094
3,925
1,320
3,718
53,581

22,805
8,222
7,706
6,162
3,477
2,831
5,297
66,725
3,251
152,628
                              15

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     First,  it must be  recognized  that the nature  of the definitions was  a
 significant factor in  influencing the results  of  this survey.   Second, as
 laboratory  directors utilized  the definitions  to  examine their  programs, a
 common operational approach evolved by which the  degree and definitiveness
 of EPA program  office  support  became a governing  criterion.  Thus,  the
 estimates presented in Table 2 were developed  not only on the basis of the
 scientific  definitions presented  previously, but  also on the basis  of how
 well each laboratory could  couple its programs to program and regional
 office needs.   Finally,  it  must be noted  that  although an estimated $47
 million was designated for  exploratory research,  in fiscal 1978 only $4.7
 million actually  fell  in the basic environmental  and anticipatory category.
 Thus,  most  resources placed in the exploratory category were advance con-
 cept development  programs that ORD Laboratory  Directors viewed  supportive
 of potential long-term regulatory need but not applicable to short-term
 requirements.

     Further examination  of  Table  2 indicates that the percentage of resource
 dedicated to exploratory efforts  varies with the  mission of  each office  and
 laboratory.   For  example, the  Environmental  Monitoring and Support  Laboratory
 in Cincinnati indicated  that only 10  percent of its research was exploratory
 because its programs are heavily  oriented toward  developing  standard mea-
 surement methods  and quality assurance programs to support the  regulatory
 programs of the Office of Water and Hazardous  Material (Effluent Guidelines,
 etc.).   The Environmental Sciences Research  Laboratory in Research  Triangle
 Park  indicated  that almost  70  percent of  its resources were  dedicated to
 exploratory efforts.   Again, this figure  reflects the major  emphasis of  the
 laboratory,  which,  in  this  case is to develop  advanced air pollution measure-
 ment methods and  to conduct  basic research  into atmospheric  transport and
 transformation  processes.   Further  insights  are possible  by  examining more
 closely a program that estimated  that 30  percent  of its resources were in
 the exploratory category.  The Municipal  Environmental Research Laboratory
 in Cincinnati,  is representative  of this  type  of  split program.  It has a
 Solid Waste  Research Division, a  Water  Supply  Research Division, and a
 Wastewater  Research Division.  Within this laboratory,  the Wastewater
 Research  Division examined  its projects and  placed the following kinds
 of activities within the exploratory  category:

    1.  Studies to assess the  potential reuse  of  municipal effluents
 discharged aboved  water supply intakes.  These  studies to characterize
 effluents and stream water quality  are  coupled  with  other  studies to
 determine the health impacts on populations  exposed  to wastewaters.
These studies were  conducted in advance of Agency  regulations or
 policies on wastewater reuse.

    2.  Studies to examine the chemical structure  of  toxic substances and
 to determine correlations with the effectiveness of different treatment
processes.   (The purpose  is to be able  to estimate  the effectiveness of a
 treatment process on an untested  toxic  substance whose chemical structure
can be described.)  Present regulations on publicly owned treatment works
 require only treatment for biological oxygen demand  (BOD) and suspended
solids  (SS).
                                     16

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    3.  Studies of methods to control stormwater runoff.  At present, EPA
does not have regulations to control stormwater runoff.

    These examples, though clearly not at the basic end of the research
spectrum, were designated as exploratory because they matched the defini-
tion of applied research in support of advanced concepts and because they
did not closely support a planned regulatory initiative.  Additional
examples of exploratory activities conducted in the past, often before
regulatory actions were planned, are presented in Appendix B.  These
projects are typical of the type that allowed ORD's laboratory staff to
be involved in research activities that enhanced their ability to conduct
applied research or to provide technical assistance.  When initiated, these
projects were often not perceived to be important by program offices
because the problems were long-term, multimedia, or high risk ventures.

    Finally, it should be noted that often different programs are conducted
within each laboratory.  This is the case within the Municipal Environmen-
tal Research Laboratory, the Health Effects Research Laboratory in Research
Triangle Park, and a number of other laboratories.  Each program may have
relatively different proportions of exploratory research and regulatory/
operational support R&D.  For example, Health Effects Research Laboratory's
program to determine the health effects of pollutants from transportation
sources conducts relatively few exploratory activities. In contrast, the
environmental carcinogen program conducted by the same laboratory is almost
totally anticipatory in nature.  Such distinctions are masked by the data
presented in Table 2, but the co-existence and intermingling of exploratory
research and regulatory/operational support R&D within the same laboratory
is important to the vitality of each ORD Laboratory and must be recognized.
                                     17

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            6.  AREAS NEEDING ENHANCED EXPLORATORY RESEARCH
    The previous chapter documented  the program areas and laboratories
 that  are conducting exploratory  research  activities.   This chapter  high-
 lights briefly  research areas  that either are  not  being  addressed or  could
 be  enhanced by  a supplemental  effort.  The list of potential  needs  is
 considerable, however, and the task  force therefore determined  that areas
 identified in this report should meet  the following tests:

    1. To be included, either  (1) the  research need should not  be addressed
       by the present program, or (2)  the complexity  of  the problem or  the
       present  level of effort should  indicate that supplementary efforts
       are warranted.

    2. The research problem should require a long-term,  sustained support
       rather than a short, intensive  burst of activity.   Also,  the
       research results should be needed  to stimulate applied research
       activities, and the results should be basic enough to  support
       environmental control requirements regardless  of  policy  or organi-
       zational changes.

    In adopting this approach  the task force recognized  that many worthy
 research areas  would be excluded.  It  also recognized that the  passage  of
 time would allow new insights  to be developed  into areas needing enhanced
 efforts.  The present areas that need  enhanced exploratory research are as
 follows:

    .  Atmospheric processes and effects
       Chemical and physical methods of measurement
    .  Development of risk assessment  methodologies
    .  Ecosystem dynamics
    .  Epidemiology
    .  Fundamental mechanisms  involved in land application of wastes
    .  Global problems
    .  Groundwater research
    .  Integrated exposure assessments
    .  Pollution control processes
    .  Screening techniques and early  indicators of toxicity
    .  Socio-economic research

This list should be considered representative  only.  New and perhaps more
 important needs will most certainly evolve  in  the  future.
                                     18

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    The list was developed on the basis of suggestions from Laboratory
Directors, discussions with scientists and environmental managers in non-EPA
laboratories, and interviews with other EPA personnel.  In almost all areas,
the actual research could be conducted through either extramural or intra-
mural efforts.  Many factors such as personnel ceilings and the availability
of qualified staffs and facilities must be considered before implementation
can proceed.

    The sequence in which the activities are selected or implemented will
depend on a number of factors, including availability of funds, presence
or absence of scientific capability, guidance from the scientific community,
activities of the Interagency Regulatory Liaison Group  (IRLG), and the
Agency's perceptions of research areas needing increased attention.

    The Interagency Regulatory Liaison Group is addressing research and
development collaboration, risk assessment procedures, and the development
of compatible testing and epidemiology standards and guidelines.  These
efforts are designed to improve the usefulness of the information developed
by the four agencies as well as the private sector.  Close cooperation of
this type is required with other pertinent agencies.

Integrated Exposure Assessments

    Man is exposed to substances in the environment from multiple sources,
(water, air and food, for example) that come in contact with human tissues
through inhalation, ingestion, and contact with the skin.  He  is exposed
while  in his work place, home, or recreational environment. Some of the
substances that effect him are manmade, and others are  natural background
materials. Responsible regulatory approaches must thus  require that consid-
eration be given to total exposures and body burden levels.  But our  ability
to collect and analyze data  in order to derive exposure assessments,  except
under  unique conditions,  is  limited.  When attempts are made to estimate past
exposures, even over the  last 20 years, the job becomes even more difficult
and points up the need for reliable monitoring methods.

    In the future, all regulatory agencies responsible  for protecting man
will likely require total exposure information.  Such data are essential to
epidemiological studies and  ultimately to an integrated  regulatory approach.
The development of techniques and methods to obtain and analyze exposure
data will require a sustained effort over a long period of time.  Multi-
disciplinary teams of biologists, toxicologists, industrial engineers, and
mathematicians will be required to develop and test exposure assessment
approaches.


Epidemiology

    One method of evaluating human health risks  is  through epidemiological
studies.  Such studies are inherently  long-term, require  the use of good
exposure data, and must consider many variables at  one  time.   Recently,
                                      19

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data gathering and statistical approaches to manipulate data have become
increasingly complex to assure that scientifically valid experiments are
conducted.  Yet when regulatory decisions must be made, good epidemiologi-
cal  information is not always available.

    EPA uses epidemiological studies along with chemical and toxicological
tests to determine human health risks.  The spectrum of epidemiological
research needs within this area includes  (1) the development of  unproved
methodologies, (2) the systematic collection and storage of demographic,
genetic, and body burden data bases, (3) the improvement of statistical
techniques, (4) the conduct of prospective epidemiological studies to
explore potential correlations between environmental pollutants  and diseases
such as emphysema and hypertension, (5) and the conduct of routine studies
with proven methods in support of regulations.  EPA's present activities  in
this area emphasize the need to develop information for regulatory purposes.
Relatively few studies are directed at improving methodologies.

    Closely associated with this research need is a requirement  for trained
personnel to conduct research.  A study by the Department of Health Education
and Welfare, "Human Health and the Environment—Some Research Needs,"  (see
Section 9, Bibliography, Item number 8) indicated that epidemiology training
was primarily at the post-doctoral level.  The output of scientists was
small and varied between 3 and 10 during the period 1966 to 1975.  The out-
put  in 1975-76 increased to 20.  This study noted that though the demand
for epidemiologists could not be quantified, demand substantially exceeded
the supply and would increase in the future with new laws and industrial
research activities.  In the near term, additional research support will
further stress this manpower shortage; but in the long run, additional
research will complement training activities to assure that the  national
need for this  scientist is met.

Socio-Economic Research

    The need for socio-economic research that is aimed at environmental
control programs has been recognized within EPA, the academic community,
and industry, as illustrated by a recent report by the National  Research
Council (see Section 9, Bibliography, Item number 6).  There has been less
agreement about what should constitute the nature of such a program.  Recent
activities have been focused on a limited program to improve methodologies
for estimating the benefits of pollution control and to develop  incentives
to supplement regulatory actions.   This approach, undertaken because of
limited and unstable resources, does not provide for comprehensive analyses
of many important problems or for the continuing development of  methodologies
and information to support a national environmental protection program.

    Within this area,  several research needs (in addition to further devel-
opment of benefits/cost methodologies)  appear to warrant a continuing
commitment.  These needs include (1)  the continuing development  and eval-
uation of improved incentives, including economic tools for pollution control
decisionmaking, (2)  development and evaluation of actual field-level testing
of alternative implementation approaches, and (3) development of methods  for


                                     20

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 coupling  economic  approaches with  other  research  approaches  (epidemiology,
 for  example).   Furthermore, a  great  deal more  research  needs  to be conducted
 on the mechanisms  used  by  the  private  sector to respond to government  regu-
 lation. An understanding of typical  response patterns would enable EPA to
 make more precise  estimates of the anticipated economic impact of proposed
 regulations.   It might  also enable the agency  to  formulate regulations in
 ways that would minimize adverse economic  effects.   For example,  it  could
 be hypothesized that EPA consistently  overestimates the anticipated  private
 sector costs of complying  with regulations because  it underestimates the
 ability of the private  sector  to adjust  to regulatory actions.  An exami-
 nation of the economic  effects of  past regulatory actions would shed light
 on the extent to which  this hypothesis is  true.

     The development of  this research area  must be carefully considered
 prior  to  implementation.

 Groundwater Research

     The Nation's groundwater constitutes one of  its most valuable natural
 resources.  Groundwater supplies the domestic  water needs of  20 of our
 100  largest cities and  96  percent  of rural America. At least half of  the
 population relies  on groundwater for drinking  water.

     Though the nature of groundwater makes it  available in  various quan-
 tities in most locations,  it  is subject  to contamination from a wide variety
 of sources, which  are also widely  distributed. Dealing with such contami-
 nation is complicated by the extremely slow movement of pollutants  through
 the  subsurface environment.  Decades or  centuries may pass  before groundwater
 quality can be naturally restored  after  contamination.

     Our scientific, engineering, and economic  goals should  thus  be primarily
 directed  toward the protection of  groundwater  quality rather than its restora-
 tion.   Protection of the groundwater resource  must be based on understanding
 the  subsurface as  a pollutant  receptor and on  systematic development of
 information concerning the transportation and  transformation of  pollutants  in
 both the  unsaturated and saturated subsurface  environments.   The development
.of sampling technology, analytical methodology,  and contaminant  indicators
 is prerequisite to definitive  groundwater  studies.

     EPA recently announced the expansion of its groundwater research program
 in Ada, Oklahoma.   The prime objective of this internal program  is  the
 development of source control  criteria documents to support regulatory needs.
 The  complexity and size of the problem are such,  however, that complementary
 longer-term efforts are required to stimulate the near-term program and
 strengthen its scientific foundations.  Close coordination with  the U.S.
 Geological Survey is also required.
                                      21

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 Fundamental  Mechanisms Involved in Land Application of Wastes


     In order to  take  better  advantage of the  opportunities for  land  appli-
 cations, more information is needed on a number  of processes.   We must  be
 prepared to  answer questions such  as:  (1) What are the long-term impacts of
 waste materials  on soils,  surface  waters, and groundwaters? and, (2) What
 are  the potential health  threats?

     A fundamental understanding of the transport,  transformation, and fate
 of materials in  waste is  essential if we are  to  adopt  these practices on a
 large scale.   Materials that need  investigation  are heavy  metals, organic
 compounds, other toxic substances,  and nutrients.   Studies are  needed to
 determine the fate of organics  in  soils,  formulations  of degradation pro-
 ducts, effects on soil structure and vegetation, movement  through the soil
 profile, and changes  in those compounds as a  result of chemical, physical,
 and  biological activity of the  soil systems.  The interactions of metals and
 other toxics in  soils require similar  investigations.   Also needed are  new
 approaches for detoxification effluents from  publicly-owned waste treatment
 works and new definitions  of critical  parameters that  identify  and charac-
 terize degrees of toxicity.

     Finally,  problems associated with  the management of nutrients, (parti-
 cularly nitrogen and  phosphorous) must be resolved.  A primary  objective
 is to manage soil treatment  systems so that nutrients  are  both  utilized
 and  prevented from entering  groundwater  and surface water  in harmful
 concentration.

     The need for health information related to land application practices
 is equally important.   These needs  center on  information related to  (1)
 uptake and effects of metals, organics,  and other  toxic substances on food
 chain and man, and (2)  viruses, parasites and bacteria that may enter
 groundwater  systems.   (This  area is an important segment of groundwater
 research as  well.)  Some food chain studies are being  undertaken, but to
 date these have  been  limited  to only a few food, soil,  and  pollutant
 combinations.

Chemical and Physical Methods of Measurement

    Programs  to  control and  abate environmental pollution are critically
dependent on  the ability to  identify and measure substances in  the environ-
ment. As obvious forms of pollution are brought under  control, concern  is
turning toward the more ubiquitous  pollutants present  in the environment
at low concentrations.  This concern has become particularly acute as the
potential link between pollution and cancer increases  and as other more
subtle and far-reaching effects are  investigated.  These concerns have
presented the measurement method scientists with some  severe challenges:

    •    Methods are now required to qualitatively and quantitatively mea-
         sure environmental pollutants present in a background of great
         variety.  The methods must provide reasonably  accurate measure-
         ments at concentrations as  low as the part-per-trillion level.

                                     22

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    9    Methods must be made available for the analyzing of soils,  sedi-
         ments, participate matter, and tissues.  All of which present
         problems significantly different from the analysis of air and
         water samples.

    •    Methods must be translated into low-cost, reliable devices for
         unattended deployment at remote sites.  Widespread use of such
         devices is necessary in progams requiring continuous surveillance
         and monitoring.

    To meet these challenges, basic studies are needed to accomplish the
following goals:

    1.   Physical and chemical properties should be determined for sub-
         stances that might lead to more selective and sensitive analytical
         methods.  Studies should also be carried out to provide the basis
         for the measuring instruments needed for unattended use in monitor-
         ing activities.

    2.   Sampling methods should be improved to provide for the efficient
         sampling of classes of compounds and the selective sampling of
         specific compounds.  Success in this area would allow analytical
         methods to be more readily applicable to the identified measurement
         requirements.

    3.   Our understanding should be improved about the mechanisms that
         govern the quantitative analysis of substances adsorbed to or
         interspersed  in solid materials.

    4.   Quality control should be provided for all aspects of environmental
         measurement.

Global Problems

    Formulation of many regulatory strategies within the United States
requires knowledge about worldwide background  levels, sources of manmade
and natural pollutants, and movements and transformations  of pollutants.
In most  instances, relatively little is  known  about what constitutes
natural pollutant levels, whether pollutants are  increasing or decreasing,
or whether controls within  the United States will substantially affect
world levels  in  light  of continuing emissions  from natural or  industrial
sources  in other countries.  Impacts of  specific  activities or trends  i.n
other countries,  (deforestation, for example)  on U.S. environmental
efforts  remain  largely unknown.

    EPA  activities  in  this  area are primarily  oriented  toward  supporting
United Nations programs.  Global trend  and  impact analyses within  the  United
States are not conducted  in a systematic manner.  Efforts  to develop  and
store data to support  such  analyses are  equally scattered. Recently,  lead,
DDT, transuranic materials,  carbon dioxide,  freons, mercury, and petroleum
hydrocarbons  have emerged as pollutants  with worldwide  implications.   But
in each  case, only  limited  information  has  been available, and each analyti-

                                     23

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cal team has had to develop  its own methdology to obtain and analyze data.
A  focal point  for U.S. efforts would simplify this  task.  The principal
mission of  such an activity  could  include methodologies for analyzing
global problems and for  collecting and  storing  data on pollution sources
and trends.

Ecosystem Dynamics

    Our present knowledge of ecosystem  dynamics is  mostly descriptive.
Our capacity to quantify changes is limited, and our ability to predict
effects is  even less certain.  However,  some simple ecological principles
are being used to manage the agriculture/ aquaculture/ and silviculture
industries, even though  the  governing ecological principles are only
partly understood.  These management practices have been perfected mainly
through trial  and error.   Management of the more complicated natural
ecosystems  will require  greatly increased knowledge of the limiting
parameters  of  their structure, function, and dynamics.

    To develop this knowledge, long-term studies on the structure of eco-
systems under  stressed and unstressed conditions should be conducted, and
the abiotic and biotic components  that  structure the system should be
described.

    Investigations of the functions and  dynamics of ecosystems are required
to define the  adaptive and variable characteristics of the normal systems.
Results can then be used to  quantify the responses  of selected ecosystems
to stress perturbations  and  determine their reversibility.  Ecosystem
responses include changes in species composition and the reduction of
community-level functions, including decreased productivity, simplified
structures, and decreased species  diversity.

    Information from such studies  is not developed  in a short period of
time.  Sustained support for  dedicated professionals is necessary to
assure that long-term objectives are achieved.

Pollution Control Processes

    The development and adoption of new  pollution control technology is a
complex process.  The private sector has an important role to play in fos-
tering and developing new processes.  Advances may  begin with the identi-
fication of a generic concept—electrostatic separation, flocculation,
chemical reaction, or biological digestion for example.  From the initial
concept, development proceeds through various laboratory, pilot-,  and
full-scale experimentations  and demonstrations until a reliable form of the
technology  is established.  As the concept matures,  the number of applica-
tions may increase, and with  it, the number of specific technical problems
that must be solved.

    EPA's control technology  research, development,  and demonstration program
has in the past been involved in the full range of  activities associated with
developing new control options.  Near term applied  and development activities
have received the highest priority.  The efficiency of the program (i.e., the

                                     24

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number of problems solved with a special level of resources) is controlled by
two aspects of the quality of the research. The first is engineering innova-
tion or the ability to invent or find new concepts for removing pollutants.
The .second is the sophistication of the researcher in understanding the
basic science (i.e. physics or chemistry)  of the technical problems
impeding successful demonstration of a technology.

    Many of the problems in separation or pollution control can be assessed
from the point of view of their basic physics and chemistry.  To sustain
applied activities, exploratory studies are needed to advance basic under-
standing of the mechanisms that limit our ability to reduce, recover,
and/or reuse pollutants. Studies of advanced separation and concentration
techniques are needed to improve the treatability of wastes.  Research
efforts should first include principles in separation and concentration
techniques such as activated carbon, reverse osmosis, etc.  Also,  innova-
tive detoxification methods that reduce environmental impacts of residuals
should be assessed.

    The applied nature of the past efforts has not provided the opportunity
for research that would underpin the present state of the art or catalyze
the scientific community to consider conceptually new control concepts and
waste management options.  Because regulatory incentives for advancing the
knowledge are at best limited, the technology reservoir is  running dry.

    The state of the art for pollution control has become  increasingly
sophisticated as the push increases for higher efficiency and pollution-
specific effectiveness.  The ability to adapt known  treatment techniques
to varying uses is hampered, however, by a lack of understanding of  the
basic chemical, biological, and physical processes that govern the treat-
ment process.  This research problem is a candidate  for longer-term
exploratory research and can influence the general applicability of
available technology.

    Multimedia  (i.e. air, water and land) pollution  control is a management
option with potential for economic and technological benefit.  Since the
EPA regulatory mandates promote  individual media  control programs, the
opportunities to exploit combined control at any  one point  source  site
 (i.e.  industrial, municipal) are limited.  Research  to  identify and
characterize these multimedia opportunities should be conducted on a
limited basis to provide feasibility criteria for  influencing the  future
direction of Agency regulatory programs.  The  increasing complexity  of
pollutant control will  likely require  future consideration  of more inno-
vative waste management alternatives such as combined and multimedia
environmental control.

Screening Techniques and Early Indicators of Toxicity

    Passage of  the Toxic Substance Control Act has created  significant
demands  (1) for techniques  to screen new chemicals and  (2)  for  information
that  relates easily recognized disease to more subtle physiological  effects.
The first area  requires reproducible,  sensitive,  and rapid  tests  that can


                                     25

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 be  used  to  assess  the  potential  toxicity of the many chemicals,  compounds,
 and mixtures  that  are  entering the environment.   In this area, exploratory
 research is needed to  find  new and or  improved  ways to screen for  human/
 ecological  effects.  Scientific  criteria that link  toxicological effects
 with measurable  reactions must be  provided  so that  screening  methodologies
 can subsequently be developed for  regulatory or research use.

     In the  second  area of physiological  effects,  improved understanding  of
 the physiological, biochemical,  and pathological  processes associated with
 toxicity is required to  relate sublethal effects  identified in early-stage
 testing  with  longer-term studies.   From  this information, models can be
 developed that reduce  the need for using long-term,  full-duration  exposure
 studies  as  the primary assessment  tool.

     The  development of new  chemicals  is  not likely  to abate in the future.
 The corresponding  need to develop  screening techniques and improve the
 understanding of toxic effects will not  be  easily accomplished.  This kind
 of  research requires the slow building and  extension of existing scientific
 knowledge as  well  as long-term,  stable resource commitments.

 Atmospheric Processes  and Effects

     Atmospheric  processes and effects research provides information that
 relates  to  several  important EPA needs.   It is particularly important
 because  potentially large social impacts could occur as efforts  to prevent
 significant air  quality  deterioation were forward.   This type of research
 provides information on  the link between air pollution sources and recep-
 tors, and on  atmospheric effects such as visibility degradation.   Mathe-
 matical  models incorporating transportation and transformation terms of
 atinospheric processes  are an important end  product  of this research.
 Individual  tasks include theoretical and basic experiments in photo-
 chemistry,  laboratory  simulations  of atmospheric  processes in smog
 chambers and  wind  tunnels,  and rather large field experiments involv-
 ing  a number  of  investigators.

     Information  from these  studies contributes to the resolution of many
 environmental problems: Visibility deterioration, Influence of halocarbons
 such as  the aerosol propellant freons on lower atmosphere photochemistry
 and  stratospheric ozone, Greenhouse effect  of CO-, Natural  air pollutants,
Self cleansing of  the  atmosphere,  Air pollutant transport across state and
national boundaries, Transfer of air pollutants to  soil and water  by both
dry  and wet deposition, Transfer of pollutants  in water to air by  volati-
 lization or aerosolization, Transport and lifetimes  of toxic  substances
 (including  carcinogens)  in  the air,  Formation  of  toxic substances
 in the air  by photochemical or nonphotochemical atmospheric reactions,
Effect of air pollution  on  climate and weather, Effect of complex  terrain
on ground level  air pollutant concentrations, Transport and transformations
of pollutants from diesel-powered  vehicles  in the vicinity of high traffic
density  roadways, Transport and  transformation of pollutants  emitted to
the air  by  new energy  technologies.
                                     26

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Development of Risk Assessment Methodologies

    Risk assessments are an essential component of all regulatory deci-
sions.  These assessments must follow the development of information on
exposures and toxicity, and they involve a mixture of statistical, scien-
tific, and public policy considerations.  In some instances, the benefits
conferred by a suspected substance, process, or facility can be achieved
by alternatives, in which case the regulatory decision may be clear-cut.
In many other cases, important benefits may be lost, and the size of the
risk must be balanced against the benefits.  Insufficient data is a common
deficiency that plagues almost all assessments, but the development of
methodologies to properly assess risks may represent a more formidable and
complex problem.

    Recently, the need to make assessments regarding carcinogenic substances
in food, water, and air has focused attention on assessment procedures.  A
determiation of acceptable daily intakes of potentially carcinogenic sub-
stances is an important part of this procedure.  The methodologies for making
this determination have been reviewed in the literature. Interest in carcino-
genic risk has aroused attention, but environmental assessments are much
broader, and the need for unproved methodologies is much more pervasive.
Improved risk assessment methodologies are required to assure that proper
balances are achieved and over protection does not become a common approach.
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          7.   LABORATORY MECHANISMS USED BY OTHER AGENCIES
    Many mechanisms exist to ensure that long-term research is conducted.
To determine which mechanism is most appropriate for EPA, we first performed
an extensive review of past studies that had evaluated the effectiveness of
(1) intramural laboratories, (2) individual grants and contracts, (3)  Uni-
versity Centers and, (4)  Government-owned, contract operated research
centers (GOCO's).  Though the literature provides some insights into each
mechanism's function, it does not suggest that any mechanism should be
initially rejected.  Instead, it was determined that the viability of a
particular mechanism for long-term research depends on the unique set of
circumstances governing the operations of the sponsoring organization.
From this point,  in-depth interviews were conducted with approximately 90
key people in the following 20 organizations:


            National Cancer Institute
            National Heart, Lung, and Blood Institute
            National Institute of Environmental Health Sciences
            National Oceanic and Atmospheric Administration
            Department of Agriculture:
                 Cooperative State Research Service
                 Agricultural Research Service
            Occupational  Safety and Health Administration
            National Aeronautics and Space Administration
            Department of Defense (Navy)
            Food  and Drug Administration
            National Science Foundation
            Department of Energy
            Electric Power Research Institute
            Universities:
                 Cali for n i a-Dav i s
                 Rhode  Island
                 Wyoming
                 Oregon State
            Johns Hopkins Applied Physics Laboratory
            Battelle Northwest  Laboratories
           Oakridge National Laboratories
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Organizations were selected to include a wide variety of activities and
organizational forms.  Organizations devoted to basic research, combina-
tions of basic and applied research, and development of engineering
methodology were included.  Sizes ranged from a one-office operation to
multi-million dollar facilities.  Institutional settings ranged from
universities to private corporations.  Interviews were conducted with
organization directors,  middle managers and bench scientists.

    The agencies contacted used combinations of intramural laboratories,
GOCO's, university centers, or individual grants and contracts.  All
of the agencies attempted to select the best mechanism for a particular
type of work, and all recognized the interrelationship between basic,
fundamental or anticipatory research and research of a more applied
nature.

    One of the better statements on the relationship between basic and
applied research comes from a recent report of the Director of the National
Science Foundation  (see Section 9, Bibliography, Item number 22).

    The interaction of basic and applied research gives us  insight into
the nature of technological innovation.  It strikes me that we are dealing
with a sort of intellectual riverine system.  As the flow of  ideas nears
its terminus, it is a forceful and purposeful thing.  We cannot, however,
overlook the fact that this great river must rise in thousands and tens
of thousands of creeks and brooks at the higher elevations  and remotest
limits of its drainage basin.  It is the myriad contributions of the
latter that give the river its ultimate force and, quite simply, this  is
why we must nurture the earliest sources if we are to safeguard the
creative force of the entire process.

Intramural Laboratories

    Federal agencies that have  inhouse laboratories have confidence  in them.
It is there that the few  Nobel  laureates within the Federal government work,
and it is there that future research managers develop.  Most  studies empha-
size the need for an intramural capability.  The Report to  the President  on
Government Contracting for Research  and Development, Bureau of the Budget
 (McNamara Report),  [see Section 9, Bibliography, Item number  17] states
that:

       "The management and control of  the  Federal  research  and development
       effort must  be  firmly  in the  hands  of  full-time Government officials
       clearly responsible to  the President and the Congress.

       Subject to this principle, many kinds  of arrangements—including
       both direct  Federal operations  and  the various patterns of contrac-
       ting and granting  now  in use—can and  should be  used to mobilize the
       talent and facilities  needed  to carry  out  the Federal  research  and
       development  effort.  Not all  arrangements,  however,  are equally
       suitable  for all purposes  and under all  circumstances  and  discri-
       minating choices must  be made among them by the  Government agencies
       having research and development responsibilities."

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    The Department of Defense Laboratory Utilization Study of April 1975,
Office of the Director of Defense Research and Engineering  (see Section 9,
Bibliography, Item 5) had the following reference:

       "This study found, as did the Service studies, that there  is a vital
       role for the  (intramural) laboratories not satisfactorily  available
       from other sources such as industry, universities, FCRC's, Headquar-
       ters staffs,  Systems Commands, etc.  The combination of attributes
       possessed by  the laboratories qualified them to play a unique and
       needed role in the military planning function, especially  to the
       planning of systems development acquisition and usage and  the plann-
       ing of the Technology Base program to support future systems develop-
       ment.  Laboratories also help the services to be "smart buyers" by
       providing technical advice and supervision to the services interaction
       with industry, by providing an alternative source of technology so that
       their existence serves as a source of stimuli to industry  to perform
       well, and by  providing centers of excellence in areas of little or no
       industrial interest."

    Several advantages and disadvantages of intramural laboratories were
identified during the interviews.  Primary advantages were that they:

          —provide  a continuing center of expertise related to the
            agency's mission

          —have the ability to guide or monitor work done by grant or
            contract

          —can manage major developmental activities.

    Disadvantages are that they:

          —are difficult to change concerning personnel because  of civil
            service  regulations

          —lack flexibility in changing mission

          —have ceilings on government salaries that slow recruitment at
            top levels.

Extramural Mechanisms

    Agencies and Congress, through its legislative initiatives, have provided
a number of methods  for conducting research and development.  Most agencies
have settled on variations of individual grants, university centers, con-
tracts, and GOCO's.   Parts of some agencies clearly separate the  intramural
research staff from grant and contract activities, but most combine the
activities in varying degrees.  A brief description of the extramural mechan-
isms follows.
                                     30

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Individual Grants and Small Contracts

    As can be determined, all agencies use the individual grant and contract
mechanism to further their research.  Individual grants and contracts are
characterized by their size and method of selection for funding.  Grant
applications usually represent the ideas of an individual and are evaluated
through a peer review system which includes reviewers from outside government.
Contracts are defined by scopes of work developed through various methods by
the agencies and usually are evaluated by agency personnel.

    Grants and small contracts have the advantage of utilizing the talents
of individuals or small groups outside government to meet national research
needs.  The work is usually disciplinary in nature and directed toward
results amenable to the disciplinary approach.

    Other advantages are:

             The scientific approach can be excellent  if the grants are
             carefully selected

             There  is no long-term Agency commitment

             The investment is relatively small

             The small grants may be the only mechanism to support
             the ideas of an individual; and this opportunity may be
             unique

             Individual grants are  relatively easy to  end though the
             judgement to end them may be difficult.

    The disadvantages of the individual grants or small contracts are
that  it  is sometimes difficult to build a cohesive program through  this
mechanism alone and  it  is sometimes difficult to mount an  interdisci-
plinary effort.

    In summary, the  individual grants and small contracts  represent
the creeks and brooks of the riverine system, but they do not neces-
sarily result  in an organized river system.

Un ivers ity/Institutional Centers

    Agencies can choose broadly based, multidisciplinary university
centers covering a  considerable part of the agency's  interest,  or they
can select centers  to deal with specific areas of research to supple
ment  the government laboratory's capability.  Indeed,  some agencies have
chosen both paths.  The essential  ingredient  for a center  is a  firm base
within a university or  institution  that has a common  interest  in  the public
                                      31

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need as perceived by the agency.  This common interest must be shared by
leaders within the institution and the agency.  Efforts on the part of the
Federal establishment to create excellence within an academic institution
in the absence of a strong leader and firm institutional base have been
unsuccessful. Infusions of money into such institutions have also failed.

    Once the common interest is established, there are many choices. The
agency can support centers broadly oriented to many of its interests or
targeted to specific purposes.  The agency can either support a core group
with salaries, equipment, and facilities and require the center to gain any
additional support through individual grants and contracts, or it can support
most of the cost of the center.  The cost of a center ranges from $100,000 to
$1.5 million per year.

    University centers are widely used by the National Institutes of Health,
National Institutes of Environmental Health and Safety, National Oceanogra-
phic and Atmospheric Administration's Sea Grant Program; and other agencies
are beginning to use this mechanism.  The centers can vary in size from
one supported center director to a laboratory employing one to two hundred
people.  Many centers established by one agency now receive support from
several others.  In such cases, the agencies providing secondary support
have been able to capitalize on the talent pool created by the foresight
of the original sponsor.  Advantages of university centers are that they:

            —are sources of high quality science

            —can mount a multidisciplinary effort

            —provide talent not available to the agencies elsewhere

            —may not require extensive facilities

            —may be dedicated to an agency mission

            —are within reasonable cost ($500,000 to $1.5 million
              a year)

    Disadvantages are that they:

          —may sit uncomfortably within a discipline-oriented academic
            institution

          —depend strongly on center director for success

          —take time to establish

          —can cause conflict with individual researchers'
            teaching  function

          —may be difficult to redirect or  terminate.
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Covernment-Owned, Contractor-Operated Centers (COCO)

    GOCO institutions date back to 1936, when they were formed in quick
response to Federal needs in areas where the Federal laboratory capability
was thought to be insufficient and where no single university source was
able to meet the needs.

    GOOO's are useful in situations where research goals demand large,
integrated programs of long duration, where the work may be sensitive or
unique (skills not otherwise available), and where  interdisciplinary
studies predominate.

    GOCO's and Federal contract research centers  (FCRC's)  (facilities
furnished by contractor) have similar characteristics.  The centers are
established to address a requirement that is not met by existing Federal
laboratories or a possible consortium of universities.  The money  require-
ments are substantial—$50 to $150 million or more—and the contract time
can vary from 1 to 5 years.  The Government may or may not own the facilties.
The Center may derive all of its money  from one agency  (or part of an agency),
or it may seek funds from any source.   An agency may support a small part
of a center, or it may make a substantial and continuing  investment  in such
a center.

    Federal contract research centers have been started for a variety of
reasons.  The Johns Hopkins Applied Physics Laboratory, for example, was
founded to deal with the problems of faulty artillery shells  in World War
II.  The AMES Laboratory tested aircraft during the same  period.   Functions
of both laboratories have changed and expanded over the years.

    In the past 40 years, the use of FCRC's and GOCO's has spread  throughout
the Federal establishment. In an Office of Management and Budget draft
Circular on Research and Development Acquisitions,  it  is  recommended that:
(a) sufficient intramural skills  be present  in the sponsor agency to
determine whether it is appropriate to  give a specific piece of work to the
FCRC,  (b) effectiveness, efficiency, and work output of an FCRC be evaluated,
(c) an effective program for cost control be established,  and  (d)  a  periodic
review of the FCRC's operation be provided.

    The advantages of FCRC's and GOCO's are that  they:

          —can bring together resources not  available elsewhere
            to address  a problem area

          —can move projects from a basic research effort into
             practice

          —are large enough to provide multidisciplinary staff.
                                      33

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    The disadvantages  are  that  they:

          —require a  large  investment  to  support  (2000  to  3000  people)
            personnel  and  facilities.   (For  example,  a major  FCRC  or GOCO
            would require  more money and staff  than EPA  now has  for  its
            entire research  program)

          —are difficult  to terminate  and may  be  slow to change direction
            or mission

          —need a clearly described and firmly controlled  mission (both
            in scope and duration)  to provide a basis for proper management

          —need strong financial management

          —may move toward  self-perpetuation and  survival, which  reduces
            flexibility.

    Within the organizations contacted, the  Electric  Power  Research Insti-
tute stands out as an  example of a  sizable institution not  funded  by the
Federal government.  The institute  conducts  activities that range  from basic
research to large development projects  on  a  budget of approximately $190
million funded by the  electric power industry.  The present staff  totals  350
technical and 150 support  personnel.  The  relative newness  of the  institute
(1973)  provides some important insight.  At  the time  it  was established,  the
institute recognized that  it wanted to  develop  information  quickly.  It
elected to use outside contracts of varying  sizes  as  the principal mechanism
for conducting its research activities.    The institute  did not  establish an
internal laboratory, but rather hired a cadre of senior  professionals to
manage its program.  Considerable flexibility to recruit and pay for this
senior team was essential  to its success,  and the  utilization of existing
organizations was important  to a rapid  start.

General

    The essential ingredients in selection of an extramural research
mechanism appear to be as  follow:

    1.    The agency must articulate its goals,

    2.    The agency must examine those  goals and decide  that meeting
         them requires the assistance of institutions outside govern-
         ment,

    3.    The agency must consider the merits of individual grants,
         university centers, GOCO's and FCRC's

    4.    The Agency must select the mechanism(s) and  institutions  thought
         to match their own goals most  closely.
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             8. OPTIONS FOR CONDUCTING EXPLORATORY RESEARCH
    The analysis thus far has revealed a number of directions in which
EPA could channel it exploratory research efforts.  This chapter presents
the generic options that the task force considered in arriving at its major
conclusions and recommendations.  Specifically, there are four options for
exploratory research that must be carefully  examined.  These are:

   1.  Separation or integration of exploratory research and regulatory/
       operational support R&D;

   2.  Separation or integration of intramural and extramural exploratory
       research activities;

   3.  Use of the existing laboratory network or consolidation  into "super
       labs" for conducting exploratory research; and finally

   4.  Continued use of existing mechanisms or development of new mechanisr
       for the performance of extramural exploratory research.

    This chapter will explore these four options while  taking into consid-
eration the following factors:

    •   The past experience of ORD/EPA in planning, implementing, and
        reviewing environmental research

    •   The experience of other Federal agencies engaged  in  exploratory
        research through use of contract laboratories

    •   The experience of other Federal agencies  in establishing
        independent research centers within universities

    •   The advantages and disadvantages of existing FCRC's,  university
        centers and individual contract/grant  programs

    •   The management approach necessary  for  each of the above research
        mechanisms

    •   The environmental  research most  suitable  for  each type  of research
        laboratory.
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Separation or Integration of Exploratory Research  and Regulatory/Operational
Support R&D

    As shown earlier, approximately 30% of all EPA research  and development
funds are currently devoted to exploratory research.  All ORD  laboratories
conduct various levels of both exploratory research and  regulatory/opera-
tional support R&D.  Currently, no administrative  or program differentia-
tions exist between these two types of research, which are integrated at
the laboratory level.  Our  investigations have shown that within most other
Federal agencies, basic, applied, and development  activities are commonly
located together at the laboratory level. However,  some  agencies have created
administrative mechanisms to separate these  research areas.  Examples include
the Department of the Navy, which has a six-point  budget wherein basic and
exploratory activities are  two elements, and the Department  of Energy, which
recently established a separate Office of Research to direct more  fundamental
activities.  Some laboratories were found to separate basic  research from more
applied research.  Within the large contract research laboratories visited by
the task force, two of five had a separate division devoted  entirely to basic
research.  It should also be recognized that nationally  a pseudo separation
occurs between exploratory and applied research because  a large portion of
U.S. exploratory research is being conducted by academic institutions.

    Since both the separation and integration approaches appear to be viable
methods of conducting exploratory research, the task force examined both
approaches.  If ORD were to separate these functions at  the  laboratory level
into a dual laboratory system, some of the major advantages  might  be as fol-
lows:

    1.  It would be easier to isolate researchers  from the quick-response
        needs that so often accompany regulatory/operational support research
        and development and assure a stable atmosphere.

    2.  The exploratory research would have more organizational visibility,
        which would demand  increased accountability.

    3.  Bottom-up planning for exploratory research would be facilitated.

    The major advantages of continued integration of exploratory efforts
with more applied efforts are as follows:

    1.  Better control could be exercised over research  projects that involve
        aspects of both exploratory and applied research.

    2.  A strong synergism would continue to occur  between the two types
        of research.

    3.  No significant organizational changes or personnel transfers would
        be required.
                                      36

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    The advantages of continued integration at the laboratory level appear
to outweigh the advantages of separation into a dual laboratory network.
However, the task force does feel that it is warranted to have exploratory
research separated administratively from regulatory/operational support
R&D.  The functional separation of these two activities would weaken
existing efforts.  In particular, the isolation of exploratory activities
into a number of separate or super-labs is not warranted because explora-
tory scientists would then be insulated from their regulatory/operational
support R&D peers at other locations.  Such an arrangements would be
both financially and scientifically expensive.  Both types of scientists
need to be able to communicate on a regular basis to enhance each others'
approaches.  The exploratory research could be planned, implemented, and
reviewed by ORD.  The regulatory/operational support R&D could be planned
and reviewed by both ORD and the program offices and for the most part
implemented by ORD.

Separation or Integration of Intramural and Extramural Exploratory
Research Activities

    Within EPA's predecessor agencies, extramural research activities were
often managed separately from intramural research programs.  After EPA
was formed, extramural and intramural activities were  integrated and
managed as a total program aimed at achieving a particular objective.   For
the most part, this integration into a total program has been successful  in
EPA.  The extramural activities are considered to be extensions of  intra-
mural efforts, and they are aimed at filling  information gaps not easily
satisfied by intramural researchers.  The success of this approach depends
on having an adequate, well qualified intramural staff to plan, develop,
and review extramural activities.  The staff must do an effective job of
managing the extramural program and must also act as an information
transfer link through which new information flows into the Agency.

    Our interviews have shown that independent extramural programs  are  being
conducted successfully in isolation  from intramural programs by a number  of
organizations  (e.g., the National Science Foundation).  The primary  reason
for the success of either method lies in the  purpose and the nature  of  the
research programs.  The purpose of EPA's overall  research effort  is  to
develop information to support regulations, whereas the National Science
Foundation's overall objective is to develop  basic scientific knowledge.
The former type of research requires directed and integrated intramural and
extramural activities to achieve the regulatory objectives of EPA.   The
latter activity, on the other hand,  is not always directed toward specific
application objectives.

    The Task Force believes that it  is appropriate  for EPA to  integrate the
intramural and extramural research activities conducted  in support  of  regu-
lations.  These  shorter-term activities must  be closely managed and  directed
toward filling  information gaps  for  regulatory purposes.  The Task  Force
also believes  that this arrangement  should apply  to exploratory efforts to
assure the transfer of research  results.  But, because these activities
will focus on  longer-term objectives, a greater degree of  freedom in the
management of  extramural projects  is possible, and  scientist to  scientist

                                     37

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contact between EPA and the academic community should be an important means
of assuring that coordination  is achieved.  Closer coordination of projects
funded by other agencies should also be established.

Geographical Consolidation of  Intramural Exploratory Research Laboratories

    The 15 existing EPA laboratories are located  in nine different geogra-
phical sections of the United  States.  Another mode of operation for this
laboratory system would be to  physically locate all intramural research at
one or more laboratories dedicated solely to exploratory research.   (For
example, to minimize the movements of people, one lab could be at Cincin-
nati, one at Research Triangle Park, and one at another location).  Though
one can argue that this arrangement would increase synergism among the
various media and discipline-oriented exploratory scientists, it would
have the following disadvantages:

    1.  Programs and researchers not currently located at the three selected
        laboratories would have to be moved at significant costs and delays
        in research outputs.

    2.  A separation would be  created between exploratory research and
        regulatory/operational support R&D.

    3.  A duplication of some  personnel, facilities, and equipment would
        occur in the separation of exploratory and regulatory laboratories.

    Unless a broad new exploratory research area not currently addressed
by the existing ORD laboratory network is identified, the present laboratory
system appears to be a satisfactory method for conducting research
in EPA.

Extramural Exploratory Research Options


    EPA currently employs three mechanisms for its extramural research acti-
vities.  The Agency conducts most of its extramural research through contracts
and grants to universities, private institutions, and other Federal laborator-
ies.   EPA does not have its own contract laboratories* (such as the National
Laboratories of the Department of Energy)  or any centers within universities
(such as those sponsored by the National Insitutes of Health).  However, EPA
does utilize the National Laboratories to conduct individual projects through
passthrough funds and by the Interagency Agreements (IAG)  mechanism.  These
cooperative interagency approachs should be expanded for exploratory research.
Recently, another mechanism known as mission contracts has been encouraged
within EPA because of the limited contract management personnel needed to
administer numerous small projects.


    *EPA does provide support along with the Food and Drug Administration
for the National Center for Toxicological Research.
                                     38

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    Traditionally, EPA relied on these mechanisms because they were
proven adequate to meet Agency needs for producing information, primarily
in support of regulations.  But, exploratory activities require a stable
atmosphere, top quality scientists with long-term professional commitments,
and good facilities.  Exploratory research must also be administratively
isolated as much as possible from the day-to-day pressures of the regula-
tory programs.  The individual grant is therefore a good mechanism for
supporting talented scientists working on specific exploratory research
problems.  The Task Force recommends that individual grantees continue to
be utilized as one approach to conducting this type of research.  Indivi-
dual grants allow scientifically diverse and geographically separate
innovative researchers to contribute to the national environmental effort.

    Other exploratory activities associated with the research areas iden-
tified in Section 6 require a larger research team than available through
a single grantee.  To conduct programs of this magnitude, other Agencies
have traditionally used either FCRC's or institutionally based centers.
If we consider the development of either of these two mechanisms within
the framework of EPA, the following observations can be made about the
FCRC mechanism and scientific centers.

    First, an environmental FCRC would:

     —require $100,000 to $150,000 to operate (this would necessitate
       a 40-to 60 percent increase in ORD's budget);

     —require 2 to 5 years to become operational because of staffing and
       facility requirements;

     —to some extent deplete the professional staffs of many  existing
       Federal, university and private labs;

     —require an  increase in EPA management and administrative personnel;

     —duplicate many facilities now  in existence.

     —delay efforts aimed at allowing EPA to expand utilization of large
        centers such as those operated by they Department of Energy.

   Second, a system of centers  located  in universities  and other  insti-
tutions would:

     —enable EPA  to take advantage of existing  research groups
       throughout  the country;

     —be compatible with the size of EPA's present programs;

     —be  implemented quickly because only moderate staff  increases would
       be  required and no large facilities other than equipment would be
       needed;
                                      39

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     —be able to target one specific problem rather than a broad number
       of problems and managed with relative ease;

     —be implemented at a reasonable cost of between $500,000 to $1
       million per year for each center.

       The Task Force therefore recommends that institutionally based
       centers be used if EPA significantly expands its extramural
       exploratory research program into any of the areas identifed
       in Section 5.

    In summary,  this analysis has lead the task force to the following
conclusions:

   o   Exploratory research and regulatory/operational support R&D should
       continue to be linked at the laboratory level.

   o   The present EPA laboratory system should not be reorganized into a
       few super exploratory laboratories and other laboratories directed
       to regulatory/ operational support R&D.

   o   Intramural and extramural exploratory programs must utilize scien-
       tist-to-scientist contacts to assure that research conducted by
       these two mechanisms remains integrated.

   o   Small centers dedicated to specific research problems are the best
       mechanism within EPA's framework to supplement exploratory research.
       (Such small centers would match the nature and size of the problems
       needing to be addressed at this time.)   Five to ten such centers
       should be established.

   o   A large Federal Contract Research Center for long-term activities
       should not be established at this time.

   o   The problems associated with protecting man from substances con-
       tained in water, air,  and food are expanding rapidly.  In the
       long-term, a significantly larger and different institutional
       mechanism may be warranted to match this evolving need.  These
       requirements should be monitored and re-evaluted in the future.
                                     40

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                       9.  BIBLIOGRAPHY
1.  Biomedical Science and  Its Administration,  Office of Science
       and Technology

2.  Carcinogenic Risk Assessment,  Science Magazine, Volume 198,
       No. 4318, November 1977

3.  Contract Research and Development Adjuncts of  Federal Agencies,
       An Exploratory Study of Forty Organizations, Denver Research
       Institute, University of  Denver, March 1969

4.  Defense Systems Management College, Program Management Course,
       Individual Study Program

5.  POD Laboratory Utilization Study, Office of the Director of
       Defense Research and Engineering, 1975

6.  Environmental Research  Assessment, National Research Council

7.  Future of Federal Contract Research Center,  Harvard Business
       Review, Dean G. Gogginton and Gordon Milliken, April 1970

8.  Human Health and the Environment—Some  Research Needs, U.S.
       Department of Health, Education  and  Welfare, December 1976

9.  Management of the Federal Contract Research Centers, Department
       of Defense, Director of Defense Research and Engineering,
       June 1976

10. Military Cost Analysis in the FCRC's, 1950-1975,  Institute for
       Defense Analysis, October 1975

11. Problems in the Management of Federal contract Research Centers,
       Mitre Corporation, September 1970

12. Report of the Defense Science Board, Task  Force of  Federal Contract
       Research Center Ulitization,  Office of Director of Defense
       Research and Engineering, February 1976

13. Report of the Secretary's Advisory Committee  on  the Management of
       National Institutes of Health Research  Contracts and Grants,
       U.S. Department of Health, Education and Welfare,  March 1966
                                     41

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14. Report on Research, Development, Monitoring and Technical
       Support System of the U.S. Environmental Protection
       Agency, August 1977

15. Report on Possible Conflicts of Interest Involving Center
       for Naval Analyses, Subcommittee on Center for Naval
       Analyses of the Committee on Armed Services, United
       States Senate, November 1971

16. Report on the Presidential on Government Contracting for
       Research and Development, Bureau of, the Budget, May
       1962, (McNamara Report)

17. Research and Development in the Environmental Protection
       Agency, Volume III, National Academy of Sciences, 1977

18. Review of the U. S. Environmental Protection Agency, Environ-
       mental Research Outlook, FY 1976 through 1980, August 1976,
       United States Congress,  Office of Technology Assessment

19. Special Analysis, Budget of the United States Government,
       Fiscal Year 1979, Executive Office of the President,
       Office of Management and Budget

20. Technical Laboratory FCRC (APL/JHU)  and the Navy W5AM
       Program Office, Defense System Management College,
       November 1976

21. Twenty-Sixth Annual Report, National Science Foundation,
       1976

22. Utilization of Federal Laboratories, Committee on Scien^
       and Astronautics, 1968
                                     42

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                          10.  APPENDICES

Appendix A. Office of Research and Development Program Structure

    The Office of Research and Development functions as the principal scien-
tific component of EPA under the direction of one of the six assistant
administrators of the Agency.  Its fundamental role is to produce scientific
data and technical tools on which to base sound national policy in the devel-
opment of effective pollution control strategies and reasonable environmental
standards.  ORD seeks to answer the following questions:

    •  How can pollution be  identified, measured, and monitored?

    •  What are the relationships between pollutant discharges and environ-
       mental degradation?

    •  What levels of pollutant discharge from specific sources can be
       permitted while still attaining defined ambient quality standards?

    •  What are the health and ecological effects of pollutants on people,
       other life forms, and the inanimate environment?

    •  What technologies are available for controlling pollution  and what are
       their characteristics?

    •  How can environmental quality best be maintained and  improved?

    The Office of Research and Development Program  is carried out by about
1,700 employees with a current budget of $250 million per  year.   The Office
staff is  composed of professionals  in 60 disciplines located throughout  the
Nation  in 15 major laboratories and one headquarters office.  All personnel,
scientists, and engineers contribute to a research  program that consists of
inhouse activities as well as programs shared with  the  academic community,
the private sector, and numerous Federal, State, and local agencies.  The
organization of ORD is presented  in Figure A-l  .

    EPA's research program  is multidisciplinary  and multimedia  in nature.
For purposes of budgetary authorization and appropriation, programs are
classified along media and/or categorical lines  as  follows:

       Air                              •  Water Supply
       Water Quality                    •  Toxic Substances
        Solid Waste                      •  Energy Research
        Pesticides
        Radiation

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                     OFFICE OF THE PRINCIPAL
                        SCIENCE ADVISOR
                                                    U.S. ENVIRONMENTAL PROTECTION AGENCY
                                                    OFFICE OF  RESEARCH AND DEVELOPMENT
                                                                   ASSISTANT ADMINISTRATOR
                                                                     ASSOCIATE ASST. ADM.
                                              OFFICE OF
                                              NNING 1 REVIEW
                                                                         CARCINOGEN ASSESSMENT
                                                                               GROUP
                                                      OFFICE OF FINANCIAL
                                                       « ADMINISTRATIVE
                                                          SERVICES	
OFFICE OF MONITORING
        AND
 TECHNICAL SUPPORT
OFFICE OF ENERGY
  MINERALS AND
    INDUSTRY
             ENVIRONMENTAL
             MONITORING & SUPPORT
             LABORATORY -
             RESEARCH TRIANGLE PARK
              ENVIRONMENTAL
              MONITORING & SUPPORT
              LABORATORY •
              CINCINNATI
 OFFICE OF AIR
LAND AND WATER
      USE
            INDUSTRIAL
            ENVIRONMENTAL RESEARCH
            LABORATORY •
            RESEARCH TRIANGLE PARK
            INDUSTRIAL
            ENVIRONMENTAL RESEARCH
            LABORATORY •
            CINCINNATI
              ENVIRONMENTAL
              MONITORING i SUPPORT
              LABORATORY •
              LAS VEGAS
              ENVIRONMENTAL
              RESEARCH INFORMATION
              CENTER-
              CINCINNATI
 OFFICE OF HEALTH
       AND
ECOLOGICAL EFFECTS
           ENVIRONMENTAL SCIENCES
           RESEARCH LABORATORY -
           RESEARCH TRIANGLE PARK
           MUNICIPAL ENVIRONMENTAL
           RESEARCH LABORATORY -
           CINCINNATI
                                                    ROBERT S. KERn
                                                    ENVIRONMENTAL RESEARCH
                                                    LABORATORY -
                                                    ADA
                                                    ENVIRONMENTAL RESEARCH
                                                    LABORATORY
                                                    ATHENS
                                         Figure  A-l.    ORD  Organizational  Chart
             HEALTH EFFECTS
             RESEARCH LABORATORY
             RESEARCH TRIANGLE PARK
             HEALTH EFFECTS
             RESEARCH LABORATORY -
             CINCINNATI
                                                   ENVIRONMENTAL RESEARCH
                                                   LABORATORY •
                                                   COnVALLlS
                                                   ENVIRONMENTAL RESEARCH
                                                   LABORATORY -
                                                   OULUTH
                                                                                                                                      ENVIRONMENTAL RESEARCH
                                                                                                                                      LABORATORY •
                                                                                                                                      NAfWAOANSETT
                                                                                                                                       ENVIRONMENTAL RESEARCH
                                                                                                                                       LABORATORY -
                                                                                                                                       GULF BREEZE

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    However, pollution problems often have broad impacts.  For example,
various control systems for air pollution emissions may produce residual
that become solid waste or water pollution problems.  Therefore, ORD is
structured and operates along parafunctional lines  (i.e., research to deter-
mine the health effects of exposure to pollutants is grouped in one program'
area).  The ORD research program is made up of the  following components:

    Health effects research assesses health hazards resulting from environ-
mental pollution in several media and/or categories including air, water,
pesticides, radiation, water supply, and toxics.  Research problems are
classified according to exposure levels, perceived  effects, and the need to
take regulatory actions to protect man.

    Ecological processes effects research focuses on determining the effects
of atmospheric, aquatic, and terrestrial pollutants on the structure and
function of ecosystems and their biotic and abiotic subcomponents.

    Transport and fate of pollutants research examines the biological, chemi-
cal, and physical phenomena affecting pollutants as they migrate from  source
to receptor and otherwise transform and persist in  the ambient  environment.
Empirical and analytical techniques are developed that relate atmospheric/
aquatic/terrestrial pollution  to sources and receptors.

    Minerals, processing, and  manufacturing research addresses  point  sources
of pollution from industrial sectors, especially those from mining, manufac-
turing, service, and trade  industries that extract, produce, and process non-
energy materials into consumer products.  Methods to control and prevent
environmental degradation  resulting from accidental spills of  selected
materials are also  researched.

     Renewable resources  research encompasses development of  total  management
systems to  control  air, water, and  land pollution resulting  from  the  production
and  harvesting of food and  fiber and their  related  residual wastes.   Predictive
methodologies are developed, and probable trends  in production of renewable
resources and resulting  environmental  impacts  are assessed.  An example is the
demonstration of pest management strategies  to minimize  the  usage and runoff
of  agricultural pesticides.

     Waste management  research  focuses  on  the prevention, control,  treatment,
and management of pollution resulting  from wastewater  discharges from com-
munity, residential, or  other  nonindustrial  activities,  including urban
runoff.  Problems associated with  the  collection, transport,  and management
of  solid wastes  are also researched.   This  subprogram provides technical
 information to  support the Agency's operating  program in construction grants,
comprehensive water quality planning,  and solid and hazardous waste manage-
ment.
                                      45

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    Waste  supply research,  development,  and demonstration activities provide
 the technology and  management criteria necessary to maintain dependably safe
 surface and groundwater  supplies of drinking water.  Health effects resulting
 from  contaminants in drinking water are  also studied.

    Environmental management  research develops improved procedures for  plan-
 ning,  implementing,  enforcing,  and  assessing cost-effective environmental
 protection strategies for particular problem areas such as air  and water.
 Institutional,  economic, and  decisionmaking problems faced by governmental
 multimedia environmental programs at local,  State,  and  regional levels  are
 analyzed.   New management methods for implementing environmental protection
 plans  are  evaluated.

    Characterization and measurement methods development provides  methodo-
 logies and measurement instrumentation for  all pollutants (pesticides,  toxic
 substances,  industrial chemicals, petrochemicals,  combustion products,  etc.)
 in  air,  land,  and water  (surface and groundwaters).   Research deals with the
 basic  physical  and  chemical parameters of pollutants and development and/or
 adaptation of  instruments to  detect and  quantify pollutants.

    Measurement,  techniques,  and equipment  standardization research provides
 reference  methods,  sampling procedures,  and  monitoring  systems  so  that  stan-
 dardized techniques  are available for monitoring the environment.

    Quality assurance provides methodologies and criteria for establishing
 validated  measurement systems and conducts quality control activities to
 assure the intercomparability of all monitoring dasta.   This subprogram
 provides standard reference materials and samples,  develops quality control
 guidelines and  manuals, conducts onsite  evaluations of  analytical  laboratories,
 and makes  interlaboratory performance checks to assure  that legally defensible
 data are produced by Agency laboratories.

    Technical support is a  scientific and technical consultative service
 provided to  other organizations  within the Agency  to solve immediate and
 short-term problems  through the  use of specialized  expertise and facilities.
 The activities  typically require analytical  measurement or monitoring,  but
 other  program expertise is  also  available.

    Technical information research  is aimed  at managing and coordinat-
 ing the effective dissemination  and transfer of  the findings  and
products of  the Research and Development program to users  within the
Agency and throughout the public and  private sectors.

    Energy extraction  and processing  technology  covers  the charac-
terization of pollutant sources, assessment of environmental problems,
and development of control  techniques to mitigate the environmental
 impact of the extraction and  raw material processing of energy  fuels.
Solid, liquid, and gaseous  fuels, as  well as advanced energy  sources
such as uranium and goethermal sites  are considered.
                                     46

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    Energy conservation, utilization, and technology assessment aims
to ensure adequate energy production from fossil fuels with minimum
damage to environmental quality.  Integrated technology assessment
activities identify environmentally, economically/ and socially
acceptable alternatives for meeting national energy demands.

    Energy health and ecological effects research determines the
environmental effects of energy extraction, transmission, conversion
and use so that criteria can be developed in a timely manner to
protect human health and the ecosystem.  Identification of pollutants
released by energy-related industrial operations and determination of
their impact on the environment aid in defining the pollution control
requirements for energy, producing operations.

Appendix B.  Examples of Exploratory Research Advances

1.  The Environmental Research Laboratory in Corvallis, Oregon, completed
    research in  1976 that identified the cause and effect relationships
    of air supersaturation in Pacific Northwest rivers.  Super-saturation
    or gas bubble disease was killing millions of salmon each year.  The
    results of this research provided information that led to establish-
    ment of State standards and development of methods to prevent gas
    bubble disease.  The research staff received the EPA Gold Medal Award
    for this work.

2.  The Environmental Sciences Research Laboratory  in Research Triangle
    Park, North Carolina, initiated research on freons and other halogenated
    organic air pollutants in the late sixties and  early seventies.  This
    action was started  as a result of concern for the potential effects
    that could result from increasing use and release of these materials
    to the atmosphere.  The work was done inhouse and through two research
    grants.  The  information developed contributed  to our understanding of
    the problem of stratospheric ozone depletion, which was clearly  iden-
    tified in the mid 1970's.

    Also  in the late 1960's and the early 1970's, air pollution researchers
    recognized that total suspended particulate matter  (TSP) was not an
    adequate air pollution specification.  Exploratory research conducted
    by the Environmental Sciences Research Laboratory, Research Triangle
    Park, on chemical and physical characterization of suspended particu-
    late matter has produced techniques  for size discrimination as well as
    elemental and compound analysis.  The availability of these techniques
    to investigate problems identified at a later date made it possible to
    obtain important information on sulfate formation  in power plant
    plumes, on sulfuric acid aerosol emissions from catalyst-equipped
    vehicles, and on the Denver "brown cloud."

    Dr. Paul Altshuller and other  scientists  have  received  numerous awards
    from  scientific societies  in recognition  of their  contributions to the
    field of atmospheric  chemistry.
                                      47

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3.  The Environmental Research Laboratory in Athens, Georgia, developed
    a computer program that uses laboratory data to predict the photo-
    chemical transformation rates of organic pollutants in rivers, lakes,
    and impoundments.  Already in use by several laboratories in the
    United States, Canada, and Europe, the model allows environmental
    scientists and managers to predict the photochemical behavior of
    a pollutant without costly and time-consuming field studies of a
    specific water body.

    Dr. John M. McGuire and Dr. Arthur W. Garrison of the Athen Sciences
    Research Laboratory received the EPA Silver Medal for their excep-
    tional achievements in demonstrating the applicability of gas chro-
    matography/mass

    Dr. John M. McGuire and Dr. Arthur W. Garrison of the Athens Environmen-
    tal Sciences Research Laboratory received the EPA Silver Medal for their
    exceptional achievements in demonstrating the applicability of gas chro-
    matography/mass spectrometry to the identification of specific organic
    water pollutants, and in developing an economical system for identifying
    organic pollutants from their mass spectra on a nationwide basis.

4.  In the early 1970'.s, researchers from both the Municipal Environmental
    Research Laboratory in Cincinnati and the Environmental Research Labora-
    tory in Corvallis, Oregon, tested the widely held hypothesis that removal
    of a critical nutrient would restore a highly eutrophic lake.  In this
    project, the critical algal growth-promoting nutrient phosphorus was
    removed by advanced treatment of municipal wastewater while permitting
    such treated effluent to continue to flow into the lake.  The treatment
    facility at Ely, Minnesota, achieved a discharge with less than 0.05mg/l
    of phosphorus in the final effluent.  This is the only full-scale plant
    in the world to achieve this low phosphorus residual.  The project has
    increased our understanding of the development of the dynamics of lakes
    and the factors involved in their restoration.

5.  The Solid Waste Research Division in Cincinnati recently developed and
    tested a new process whereby microwave plasma detoxifies hazardous wastes
    by decomposition into their elements or into simple compounds.  The pro-
    cess was applied successfully at 5 to 7 Ib/hr rates in the laboratory to
    concentrated forms of malathion, PCB's, phenylmercurie acetate, Kepone, and
    other materials.  Currently, a pilot scale verification is underway wherein
    a 15-kw unit with a 10 to 30 Ib/hr capacity for liquids and solids is being
    built, including all refinements needed for continuous operation.

6.  The Water Supply Research Division in Cincinnati, through a number of
    grants, has developed methods for quantifying virus aggregation and
    determining its effects on disinfection rates.  Virus aggregation or
    clumping was suspected as being a signficant factor in deviation of
    virus disinfection results from those expected theoretically.  These
    methods are being used in further research to determine the physical
    and chemical factors that influence formation and dissolution of viral
    aggregates.  The results of these studies have important implications
    for other aspects of environmental virology, such as the development
    of improved virus detection methods and the understanding of disin-
    fection processes.

                                     48

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7.  The Industrial Environmental Research Laboratory in Cincinnati has demon-
    strated the feasibility of using chemical pumping techniques for concen-
    trating metal ions in industrial wastewaters via coupled transport
    membranes.  This new technology uses the phenomenon of chemical pumping
    whereby metal ions from a dilute solution are transported through a
    microporous membrane to a concentrated one.  The process derives its
    energy from hydrogen ions flowing through the membrane in the opposite
    direction.  This action is made possible by an organic exchange agent
    contained within the pores of the membrane, acting as a shuttle.  This
    compound combines with the metal ions on the dilute side, transports the
    ions through the membrane and exchanges them for hydrogen ions on the
    concentrated side.

8.  The Environmental Monitoring and Support Laboratory in Las Vegas, Nevada,
    has developed the capability for characterizing plumes by airborne moni-
    toring.  This work added the vertical dimension to the traditional ground-
    based air quality network.  The technique was used in four locations at
    which dispersion of point sources over complex terrain was measured, and
    at two locations to measure ozone flux from urban areas.

9.  The Industrial Environmental Research Laboratory in Research Triangle
    Park, has undertaken fundamental research  in the area of combustion
    kinetics that has shown that N0x can be reduced by at least 50 percent by
    simple combustion modification procedures.  This exploratory research
    effort is continuing and is the keystone to future regulations for the
    content for NO .
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