UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                            WASHINGTON. D.C. 20460
EPA-SAB-EEC-LTR-93-008
                                                             OFFICE OF THE ADMINISTRATOR
July 8, 1993                                                   SCIENCE ADVISORY BOARD
Honorable Carol M. Browner
Administrator
U.S. Environmental Protection Agency
401 M Street, SW
Washington, DC 20460

Subject:     Review of Draft Agency Guidance for Conducting External Peer
            Review of Environmental Regulatory Modeling

Dear Ms. Browner:

      In response to the January 1989 Report of the Science Advisory Board
(SAB) entitled "Resolution on  the Use of Mathematical Models by EPA for
Regulatory Assessment and Decision-Making," (EPA-SAB-EEC-89-012), an ad hoc
Agency Task Force on Environmental Regulatory Modeling (ATFERM) was created
under the Risk Assessment Council.  ATFERM encompasses all offices, regions,
and laboratories within EPA, and represents the first time modeling activities have
been coordinated at this scale  within the Agency. The SAB was asked to review
the draft document entitled "Agency Guidance for Conducting External Peer
Review of Environmental Regulatory Modeling," (January 26, 1993 draft), one of
the first products of ATFERM which support better management of model
development and application.

      Concurrently, and in response to the March 1992 Report on the Expert
Panel on the Role of Science at EPA, "Safeguarding the Future: Credible Science,
Credible Decisions," (EPA/600/9-91/050), a Council of Science Advisors (CSA) was
established within the Agency. The first major task of the CSA was to develop an
Agency Policy on Peer Review. This policy eventually will consist of a general
peer review guidance. The modeling guidance has been developed ahead of the
general peer review guidance;  thus, it refers to a document on general peer review
that the SAB cannot evaluate.  For this reason, the SAB went beyond the charge
of reviewing the guidance on peer reviewing models, and has made  comments on
the general peer review process.

      This review by the Modeling Peer  Review  Subcommittee (MPRS) took place
on March 3-4 at the  Environmental Engineering Committee (EEC)  meeting in
Washington, DC. During discussions on  March 3, 1993, it was pointed out that
peer review of models is just one initiative in the general area of model use within

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the Agency.  This review has focused on a portion of this overall program,
specifically peer review.  Thus, some of the more general comments on models,
included here for completeness, may be more appropriate for other components of
the modeling initiative.

1. Charge

      The charge to the SAB's EEC/MPRS was stated as two questions and a list
of issues:

      a)     How well does the guidance address its goals of being a resource for
             Agency managers implementing external peer review of environmental
             regulatory modeling?

      b)     Does the guidance provide the proper balance between being too
             restrictive versus not providing enough detail?

      The specific issues addressed included the following:

      a)     Key elements  of a modeling peer review;

      b)     Modeling framework for addressing peer review;

      c)     Relationship of peer review to the over all process of model
             development and application;  and

      d)     Model-specific peer review mechanisms and criteria.

2. Model Peer Review Process

      In general, the subject manual represents a good balance between over
prescriptive and under prescriptive guidance for external peer review of modeling.
The authors  correctly recognize that guidance often becomes de facto regulations,
and appropriately stress that this guidance should not be construed as rigid. The
authors are encouraged not to yield to the temptation to specify more  prescriptive
guidance that would lose the flexibility necessary to allow peer review  of the range
of regulatory models used by the  Agency.

      The authors also correctly identify many of the concerns associated with
implementing such a comprehensive external peer review process.  In particular,
the document points out  the concerns associated with slowing the regulatory
process  and the need to plan the  external peer  review process early in the activity.
It is possible for the process to be abused to stifle activity within the Agency. The
authors may want to consider techniques designed to avoid this potential  problem.
The Agency needs to establish some reasonable time frames to complete reviews,
as well as checks and balances within the review process.

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3. Application of Review Process

      The guidance specifies that external peer review is generally relevant to
model development and may be used on a case-by-case basis to applications of
models.  The application of complicated environmental models is subject to errors,
even if the development of the model has been thoroughly peer reviewed.  These
errors may be more severe than those encountered in the development of models.
Some common  examples of application problems include improper input data,
improper boundary condition specification, poor documentation of inputs and
assumptions, the applicability and appropriateness of using default values,
documentation  and justification of adjusting model inputs to improve model
performance, and exercising the model outside the range of its validity.

      While there are applications that should be peer-reviewed, the guidance
should document reasonable rationales where peer review is unnecessary.  These
rationales could include common and routine calculations. Guidance on
applications that should require external peer review might include applications on
which costly decisions are based or  applications that may end in litigation.   This
would include non-routine model applications which have significant impacts that
are run by states or their contractors under the  direction of EPA.  An example of
this would be the application of complex photochemical grid models used in State
Implementation Plan (SIP) development.  Guidance  also might be offered on how
stake-holders who are not satisfied  with  potential model applications can have
input into whether or not the external peer review process occurs. Guidance
should also be given as to what constitutes adequate model performance.

      As emphasized by the SAB's  EEC/MPRS, it is essential that applications
that will have a significant impact also be subjected to peer review. An example
pointed out by  the SAB's Executive Committee included an entire category of
applications that will have hundreds of millions of dollars of impacts that will not
be covered by the peer review process as it is presently envisioned. These  are the
applications to  develop the SIPs for nonattainment areas for  the criteria air
pollutants. For most of the criteria pollutants, this exercise consists of applying a
routine dispersion model, but for ozone, it involves the application of a complex
photochemical grid model that is essentially a research project.  The model runs
are not made by the EPA; they are made by the state agencies or  their
contractors. However, the EPA dictates which model to use, and EPA (OAQPS
and the Regional Offices) does not actually "turn the crank," they  control the
process.  These applications should  be  included in the peer review process,  because
they involve the use of a highly sophisticated, complex model which lacks adequate
performance evaluations.

      It  is further noted by the SAB's Executive Committee, with  regard to the
SIPs, particularly with regard to ozone, that decisions are being made in the
absence of sufficient input data. In these cases, EPA allows the use of "default"
values in lieu of actual input data, and that the evaluation of this practice needs
to be included in the peer review process.

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       The SAB's EEC/MPRS believes that when models are used in the regulatory
 decision-making process, there is a role for peer review to insure that model
 results are not misused, and that the decision is consistent with the modeling
 effort. Although the use of models has been divided into three stages in the
 guidance (development, application, and use in decision making), in actuality, the
 use of models is often a continuum across these stages, which are not distinct.
 The guidance attempts to have the scientific basis of potential future regulatory
 decisions for which a model may be used  reviewed in earlier stages (e.g., model
 development).  This is a risky approach, as  it may be impossible to predict how
 the model will ultimately be used in the decision making process. It is  more
 prudent for the Agency to  have a review on the use of models at this last stage
 (regulatory decisions), as well as earlier stages, to insure that the use of models is
 appropriately incorporated into the decision-making.

 4. General Peer Review Process Closure

       There is clear omission in the guidance on what should happen after the
 external peer review process is completed. While this  subject may be generally
 applicable to Agency-wide peer review processes, it also is necessary to include it
 in the model peer review guidance.  It should address  how the issues raised in the
 peer review process will be resolved.  An  impartial third party is necessary to
 review the proposed resolution.  This impartial third party could be senior
 management, CSA, or a continuing form of ATFERM,  so long as they are expert
 in the issues raised by the review.  To expedite the development process, the third
 party should be within EPA.

 5. Documentation

       Documentation of the entire  peer review process is extremely important.
 Without documentation of  the review(s) and the response(s) to the reviewer
 comments, there is neither rigor in the process nor evidence that the review
 actually occurred or was taken into account. There is a need in the guidance
 document to specify a standardized approach to documenting* the review process,
 especially the resolution of reviewer comments.

 6. Adequacy of Review Criteria

       It is not clear that the  elements of  the peer, review process are suitable for
 all of the peer review mechanisms listed in the guidance document.  Specifically,
 one external peer review process involves  the use of peer-reviewed scientific
journals that should not be constrained to the elements posed in the guidance
 document.  Also, the journal review process  may require much more time
 (sometimes one to two years)  than  the Agency schedule can allow.  Clearly, this
 mechanism cannot give the complete answers to the questions posed in  the
 elements of the peer review process, even  though it is  the most accepted form of
 external peer review. The Agency should  try to reconcile the differences and
 describe how this mechanism  should be used to achieve the desired end-product.

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      Specific guidance may be required on what constitutes a peer-reviewed
journal or what constitutes a qualified audience in a technical workshop.
Guidance could also be provided on what constitutes a "qualified" peer reviewer
and what mix or diversity of scientific backgrounds is  required for an adequate
review.  It  should also be stressed that qualified peer reviewers will be different
for development and application reviews.  For the former, modelers may only be
required, but for the latter, scientists and engineers familiar with the specific
domain, source emissions and data analysis experts may also be required.  Finally,
guidance should be provided on the number of reviewers  (it probably should be a
minimum of three) that are required  to give a balanced review.

7.  Adequacy of Review Elements

      It is not clear that the extensive peer review elements that are defined in
the guidance are equally important or that the list is complete.  Models are, at
best, mathematical simplifications  or estimations of the current state of
understanding associated  with the processes and effects of interest.  The most
important element to the review process is the verification of the model against
available data in the range of conditions of interest. It is not clear that other
elements are important if the model does not accurately estimate  the processes
and effects.  The ability of the model to estimate the results over a wide range of
conditions (so that the agreement  between predicted and  observed values is
unlikely to be due to compensating errors) is the key measure of success of
modeling without  compensating errors (the issue of compensating errors is a
serious  problem with some air quality models) and should be an important part of
the peer review process.

      Specific items that  should be added to the review elements follow.

      a)    "Model purpose/objectives":  is the model needed, i.e., has the  model
            selection process overlooked an existing code that  can perform the
            same function (with or without modification)?  It is important that
            the Agency not duplicate efforts.

      b)    "Major defining and limiting considerations":  (1) what are the
            important parameters and their quantity (e.g., temporal and spatial
            scales), and the effects of other parameters on these  (e.g., temperature
            effects) and (2) is the conceptual model correct?

      c)    "Theoretical basis for model":  (1) evaluation of scientific foundation
            of modeling approach and equations, (2) identification of shortcomings
            of modeling approach (e.g., missing processes, restrictive
            dimensionality, over-simplification  of processes), (3) is there a better
            (or simpler) modeling approach which could satisfy objectives  and
            have  less limitations,  (4) is the level of scientific understanding
            consistent with the modeling objectives, (5) what equations are solved

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            and do they capture the natural system, and (6) stability and
            application of the solution?

      d)    "Parameter estimation": (1) what is the sensitivity of the results to
            the estimation or variation in parameters and (2) what are the
            boundary conditions and (3) are they appropriate?

      e)    "Model performance measures":  (1) has the model conserved mass
            (model should have a mass balance check), (2) has model uncertainty
            been adequately addressed, (3) what criteria will be used to  determine
            adequate model performance, and (4) if model performance is not
            adequate, what criteria will be used to  encourage modelers to
            document and justify adjustments,  rather than arbitrarily "adjust"
            inputs to improve performance?

      f)     "Model documentation and users guide":  (1) is the model
            documentation and  level of complexity consistent with the educational
            background of proposed users and  (2) was the model tested  by
            someone other than the model developer. Verification tests  should be
            included as part of  the documentation?

8.    Agency Task Force on Environmental Regulatory Modeling (ATFERM)

      The ad hoc Agency Task Force on Environmental Regulatory Modeling
(ATFERM), created under the Risk Assessment Council, responds to the  January
1989 Report of the Science Advisory Board (SAB) entitled "Resolution on the Use
of Mathematical Models by EPA for Regulatory Assessment and Decision-Making,"
(EPA-SAB-EEC-89-012). Since ATFERM represents the first time modeling
activities have been coordinated  at an Agency scale,  the SAB  supports the concept
of ATFERM.  Unfortunately, ATFERM is to complete its mission within  12
months.  A model-coordinating activity  within the Agency is needed on a
continuing basis.

9. Recommendations

      a)    Some form of ATFERM should  continue to exist after the 12-month
            initial time period is complete.  A model-coordinating activity within
            the Agency is  needed on a continuing basis. This recommendation
            was initially made in the SAB's modeling resolution (EPA-SAB-EEC-
            89-012) , and was repeated in a more recent review on usage of
            computer models in the hazardous  waste and Superfund programs
            (EPA-SAB-EEC-91-016). One function  of ATFERM would be to
            monitor the effectiveness of the model peer-review process.

      b)    The steps of the general peer review process, including (1)  a
            documented response to the review comments, (2) an independent
            evaluation of the review comments, and (3) the documented  response

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      to insure that the review comments were satisfactorily considered,
      need to be adequately addressed. The final step should be an internal
      (within EPA) function to expedite the review process in order not to
      slow model development.  This closure step could be performed by
      senior management, CSA, or a continuing form of ATFERM, so long
      as they are expert in the issues  raised by the review.

c)    The introduction of the guidance on modeling peer review needs to
      include a discussion on  model types and codes used within the
      Agency.  Specifically, the discussion should address the variety of
      model  types used within the Agency, including those for air, surface
      water, groundwater, multimedia, and the codes for associated
      activities such as risk assessment and Monte Carlo simulation. This
      discussion  should also include a  description of the types of
      applications for which these models can be used.  There needs to be
      an indication as to how the peer review process accommodates this
      diversity of models.

d)    The focus on the guidance  for modeling peer review  is on model
      development, but equal  emphasis also needs to be placed on review of
      model  applications.  Such emphasis should  not imply that all model
      applications need external peer review, but for those applications  that
      do require  external peer review,  the current guidance is inadequate.
      Routine calculations or model applications that follow standard
      operating procedures would not normally require external review.
      Applications where external review would be considered include:
      situations where multimillion dollar decisions are based on model
      results (e.g., hazardous waste site remediation and SIP development
      using complex photochemical grid models) or model results where
      future  litigation  is anticipated, and these should include those
      applications run by states and their contractors under the direction of
      EPA.

e)    The  SAB's EEC/MPRS recommends that when models are used in the
      regulatory  decision-making process,  there be a role for peer review to
      insure  that model  inputs (and default values) are  valid and justified,
      adjustments to inputs to improve performance are documented and
      justified, that model results are not misused, and that the decision be
      consistent with the modeling effort.

f)     The  peer review process early in the modeling activity should  include
      assessment of the need for a new model, where model development is
      anticipated. An  important  role of ATFERM is to reduce the amount
      of duplication that exists within  the Agency, especially in the area of
      model development.

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      g)     In the paradigm on external peer review, there needs to be more
            emphasis on documentation of the whole process.

      h)     Some guidance needs to be provided as to what constitutes adequate
            model performance.

      i)     ATFERM has made a good attempt not to be overly prescriptive;.
            Specific information that might be added include:  (1) profiles for
            typical reviewers, (2) required number of reviewers (minimum of
            three), and (3) when Beta testing is necessary.

      j)     EPA should consider making it a requirement to peer-review all
            models.

      We are pleased to have had the opportunity to be of service to the Agency.
We trust that these comments will help in your guidance of this important
program, and look forward to your response.
/^»w
Dr. Raymond C. Loehr, Chair
Executive Committee
Science Advisory Board
                                  Sincerely,
                                  Mr. Richard A. Conway, Chair
                                  Environmental Engineering Committee
                                  Science Advisory Board

                                               1*0.

                                  Dr. James W. Mercer, Chair
                                  Modeling Peer Review Subcommittee
                                  Environmental 'Engineering Committee
                                  Science Advisory Board
                                    8

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                                  NOTICE

      This report has been written as a part of the activities of the Science
Advisory Board, a public advisory group providing extramural scientific
information and advice to the Administrator and other officials of the
Environmental Protection Agency.  The Board is structured to provide a balanced,
expert assessment of scientific matters related to problems facing the Agency.
This report has not been reviewed for approval by the Agency; hence, the
comments of this report do not necessarily represent the views and policies of the
Environmental Protection Agency or of other federal agencies.  Any mention of
trade names or commercial products does not constitute endorsement or
recommendation for use.

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                            Science Advisory Board
                      Modeling Peer Review Subcommittee
                     Environmental Engineering Committee

 Chair:

 Dr. James W. Mercer, President, GeoTrans, Inc., Sterling, VA

 Members and Consultants:

 Dr. Linda M. Abriola, Associate Professor, University of Michigan, Ann Arbor, MI

 Dr. Calvin C. Chien, Principal Consultant, E.I. duPont de Nemours & Company,
 Wilmington, DE

 Dr. James H. Johnson, Chairman, Department of Civil Engineering, Howard
 University, Washington, DC

 Dr. Jo Ann Lighty, Assistant Professor, University of Utah, Salt Lake City, UT

 Dr. June Fabryka-Martin, Los Alamos National Laboratory, Los Alamos, NM

 Dr. Wm Randall Seeker, Senior Vice President, Energy & Environmental Research
 Corp., Irvine, CA

 Dr. Mitchell J. Small, Professor, Depts. of Civil Engineering and Engineering  &
 Public Policy, Carnegie-Mellon University, Pittsburgh, PA

 Science Advisory Staff:

 Dr. K. Jack Kooyoomjian, Designated Federal Official, U.S. EPA, Science Advisory
 Board (A101F), 401 M Street, SW, Washington, DC 20460

Mrs. Diana L.  Pozun, Staff Secretary, Environmental Engineering Committee

Dr. Donald G. Barnes, Staff Director, Science Advisory Board
                                     n

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                                 ABSTRACT.

       The Modeling Peer Review Subcommittee (MPRS), along with its parent
 Environmental Engineering Committee (EEC) of the Science Advisory Board (SAB)
 has prepared a letter report on its March 3 and 4,  1993 review of the draft,
 entitled "Agency Guidance for Conducting External Peer Review of Environmental
 Regulatory Modeling." This draft guidance was prepared by an ad hoc Agency
 Task Force on Environmental Regulatory Modeling (ATFERM), which was created
 under the Agency's Risk Assessment Council.

        The MPRS found that, in general the guidance provides an appropriate
 level  of detail in the guidelines for specific elements to be addressed by the
 reviewer, but that more detailed guidance is  needed on  the mechanics of the
 review process.  The MPRS cited an  omission as to what should happen  after the
 external peer review process is completed, in order to address issues raised in the
 peer review.  However, the Agency was urged not to become  overly prescriptive, as
 to the specific details of the model peer review where the guidance could become
 de facto regulation.

       The MPRS stressed the importance of documenting the entire peer review
 process.   Among the recommendations made, the MPRS also stressed that specific
 guidance was needed on what constitutes a "qualified" peer reviewer, that the
 model should be verified against available data over the range of conditions of
 interest, that there is a role for peer review to insure that model results  are not
 misused and that the decision is consistent with the modeling effort.  The MPRS
 also recommended that some form of the ATFERM should continue to exist, that a
•model-coordinating activity within the Agency is needed on a continuing basis, and
 that the Agency should consider making the  peer-review guidance  into policy.

 Key Words: Environmental Regulatory Modeling, External Peer Review, Models,
 Peer Review,

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