UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                             WASHINGTON. D.C  20460
                                                                         OFFICE OF
                                                                     THE ADMINISTRATOR
                                  MavlS. 2006
The Head Librarian
EPA's Headquarter Library
Room 3340 EPA Wesi Building
MC: 3404T
Washington, DC 20460

Dear Librarian:

      Enclosed arc two copies of the 2005 reports of the U.S. National Advisory
Committee (NAC) and the U.S. Governmental Advisory Committee (GAC). This
notification is provided to you in accordance with the Federal Advisory Committee Act
(FACA) Section 13.
NAC Advice letters:

   •   Advice letter:  May 20, 2005
   •   Advice letter:  November 16, 2005

GAC Advice letters:

   •   Advice letter:  May 19, 2005
   •   Advice letter:  November 22,2005
                                 Sincerely,
                                 Oscar Carrillo
                                 Designated Federal Officer
                                                                  Recycled/Recyclable
                                                                  Printed with Soy/Cnnola Ink
                                                                  contains at least 50% recycled liber
r\ C} Printed with Soy/Cnnola Ink on paper that

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IJ S Governmental Advisory Committee
Independent Federal Ailvuon
on the NotIh American
Agreement on Environmental Cooperation
   Committee
    Members
                                                                      Chair
                                                                      Placido dos Santos
                                                                      Telephone 520-628-6744
                                                                      C-mail pds@azdeq gov

                                                                      Designated Federal Olficei
                                                                      Oscar Can illo
                                                                      Tel 202-233-0072
                                                                      camllo oscar@epa gov
Placido dos Santos
      Chan
     Aiizona

 ChailcsColleitc
     Florida

    John Duffy
     Alaska

 Ronald J  Dutlon
      Texas

    Lisa Govei
   New Mexico

   SaiahD Lilc
    Michigan

 Ricaiclo Martinez
    California

  Robci t R Scott
 New Hanipslin c

 Caiola G  Seirato
      Texas

   Ellen Smyth
      Texas

    Colin Soto
     Arizona

  Jeff Wennbeig
     Ve.i inoiil
                                             November 22, 2005
The Honorable Stephen L Johnson
Administrator
U S  Environmental Protection Agency
1200 Pennsylvania Avenue, N W
Washington, D C 20460

Dear Administrator Johnson

       The Governmental Advisory  Committee (GAC) to the  U S.  Representative to the  North
American Commission for Environmental Cooperation (CEC) met on October 20-21st in San Diego,
California. Consistent with desires expressed by the U.S. EPA's Office of International Affairs, this
committee spent most of its time discussing the enhancement of private  sector participation as a
means of addressing the  CEC's Puebla pillar of capacity building in Mexico   The committee also
addressed specific requests  for advice from the EPA regarding  three additional topics' 1) budget
reform in the CEC, 2) CEC publications procedures, and 3) CEC working groups

       Members of the GAC genuinely appreciate the time that you allocated to meet with members
of this committee during the June  2005 CEC Council Session in Quebec City,  Canada   The
committee greatly values the opportunity to fulfill our advisory  role  in  a  sticnglhcncd mannct
through personal interaction with you at the Council Sessions  We thank you for taking time from
your busy schedule  to meet with us  and look forward to  our next  meeting when  the Council  is
scheduled to meet in the United States

       We also take this opportunity to express gratitude  to  Barbara Mcleod, Acting Director of
EPA's Office of International  Environmental Policy, for her letter dated September 13, 2005  It  is
very helpful for us to receive such feedback in response to our deliberations and advisory letters

       We also  take  pleasure  in   recognizing the  efforts  of  EPA's  Office of Cooperative
Environmental  Management  (OCEM)  for  their  professionalism  and  hard  work  with  the
administration of the GAC and its non-governmental counterpart, the National Advisory Committee
(NAC)   In particular we express gratitude to Mr Oscar Carnllo, the committees' Designated Fcdcial
Officer,  for his  attention  to details throughout the  year   By  virtue of preparatory and follow-up
efforts made by Mr Camllo and support staff at OCEM, our deliberations proceed  smoothly and
remain on-mark  so that our advice can be of optimal value to the United States government.

       During our meeting last month, we also had the great pleasure of meeting and getting to
know  Mr Rafael  DeLeon,  the  recently appointed  Director of EPA's  OCEM    We  take  this
opportunity to commend Mr  DeLeon for demonstrating a pcisonal  interest in  the work of the GAC
and NAC by virtue of his presence and active support of our recent deliberations  We  iccogmzc that
OCEM has broad responsibilities regarding the administration of numerous advisory bodies so we arc
especially appreciative to him for displaying a strong and clear interest in our work.

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                    ^e also appreciate the parliLipation of lenrv Clifford  1.  *>  Alienwle Representative to the
            CEC and \adt\a Ruiz, both Irom the  EPA s Otfice of International MTairs (OIA)  Mr  Clifford's
            personal interaction with our committee was trulv  invaluable  The dialogue between Mr Clifford
            and the advisor,  committee members helped focus the committees and  led to  a  specific  time-
            sensime objective expressed b> EPA during the meeting   Members of the G AC were also pleased to
            ha\e received written questions from OIA in advance of the meeting as a tool to help provide focus
            on areas of interest to the I S Government

                   The GAC considers the presence of senior stall from the CEC Secretariat 10 be a \er> useful
            resource for our effective  deliberations   We appreciated Doug  Wright's presentation and views
            regarding the organization's activities, budget and direction as established b>  the Parties  The  facts
            and perspectives brought bv the Secretanat's senior staff serves to "ground-truth" our discussions
            while enhancing our own understanding of issues and activities  \&e thank  EPA for accommodating
            the Secretariat at our meetings  We also express gratitude to Jane  Gardner, a member of Joint Public
            Advisorv Committee  for her presence at the  meeting,  thereb)  promoting effective information
            exchange among our related advisory bodies

                   Finally, we would also like to recognize and thank the outgoing members of the GAC. all of
            whom served with distinction  Stephen M ah food, the former chairman  of the GAC. who made a
            great  contribution with  his exemplar)  leadership  and  consensus-building  skills    We  also
            acknow ledge the commitment of our other outgoing colleagues. Michael Colvm. Robert Huston. Karl
            Kalbacher, James Matz, and Harvev Rubin, for their dedicated sen. ice as members of the GAC

                In conclusion, we thank vou for EPA's continued support of our role in the enhancement of
            environmental conditions throughout North America and we hope  that the L' S EPA finds our advice
            useful regarding the ongoing reforms and future strategic direction of the CEC
                                                        Placido dos Santos. Chair
                                                        Governmental Advisorv Committee
            cc-     Judith Ayres. Assistant Administrator for EPA's Office of International Affairs
                   Jerr> Clifford. Deputv Assistant Administrator for EPA's Office of International Affairs
                   Rafael DeLeon. Director. Office of Cooperative Environmental Management
                   Dolores Wesson. Chair, U S  National Ad\ ison. Committee
                   Jane Gardner. Chair. Joint Public Advisor) Committee
                   Jean Perras. Chair. Canadian National Advisorv Committee
                   Stephen Mahfood, Former Chair of (he U S Governmental Advisorv Committee
                   Members of the U S. Governmental Advisor.  Committee
Administrate suppon forihe G^C i< provided bv ihe L S CnuronmcniBl Protection Agcnc> Office of Cooperative environmental Management
                          Mail Code 160IE 655l5"St Suite 800 Washmgion DC 20005
                                     (H202-233-0072 ifl 202-233-0060

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                 Gosemmental Ad\isor\ Committee (GAC)
                       to the U S Representative to the
             Commission tor Environmental Cooperation (CEC)

              Advice 200S-S: Prhate Sector Involvement in the CEC
Ad Hoc Subcommittee—The GAC recommends forming an ad hoc subcommittee
composed of NAC and GAC members to explore increasing private sector participation in
the work of the CEC
•   The subcommittee's goal would be to heed the challenge from the U.S. Alternate
    Representative to explore options for developing a strategy uith multinationals regarding
    "greening the supply chain''.
•   The subcommittee would stn\e to complete this task in time for the CEC Council Session
    that is likel) to be held in Washington. D C during June 2006
•   The subcommittee should include technical advisors, such as a representative of the CEC
    Secretariat and a member of the JPAC.
Business RoundUble—The GAC recommends capitalizing on the networks and contacts
built at the April 27th Business Roundtable.
•   The GAC recommends that consideration be given to reuniting the Roundtable
    participants and selecting potential CEC projects for private sector involvement
•   Furthermore, the GAC recommends that consideration be given to using the US-Mexico
    border region as an "incubator" for the overall concept of enhancing pnvate sector
    involvement by building on existing international relationships.  This includes, state to
    state relationships. Tribal Nations and Indigenous Community relations, binational
    environmental recognition programs (such as the Anzona-Sonora AMIGO Program) and
    private sector engagement in that region
Recognition Programs—The GAC recommends that the U S Government closeK examine
the potential value of recognition programs as a reward/incentive mechanism for significant
pnvate sector activ ities that enhance capacity building for env ironmental protection
•   The GAC recommends that recognition programs would not only be implemented in
    Mexico, consistent with the Puebla pillars, but would also be earned out on a North
    American scale.
•   The GAC recommends that EPA explore the possibility of creating a trilateral recognition
    program that could be spearheaded by the Council.
•   The GAC presumes that a fundamental tenet for such a successful program would be that
    all proposed recognition/awards would be contingent on unanimous concurrence b> the
    Parties in advance of the Council Session
•   The GAC also recommends that EPA evaluate its own domestic and international
    recognition programs such as EPA's Green Suppliers Network (GSN1)- Performance
    Track, and the Energy Star, programs as potentiallv read) mechanisms for recognition of
    private sector efforts aligned with the Puebla pillars  Close coordination with relevant
    EPA program offices, and with the other Parties, would be essential for success of such
    concepts.

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CEC and L.S. Government Corking Relationship—The GAG sirongl>  recommend* thai
the CLC Secretariat and I S Government maintain a close working relationship on existing
and proposed initiatives penammg to the objective of "greening the supph chain " The
GAC is of the opinion thai
•  coordination with the Secretariat staff on their current private sector initialises could help
   the U S and the other Panics produce a more cohesive and lasting legacv of pn\ate
   sector involvement for env ironmental benefit: and
•  the CEC seems to be moving in the right direction b> using components of EPA's (GSN)
   program
•  Consequently, the GAC recommends strengthening CEC'EPA coordination along these
   lines. The GSN and the Performance Track programs seem to be excellent programs
   highlighting "greening the supply chain*' of large multinationals and providing
   recognition and rewards to participants.
•  Overall, the United States, as the head of the Council, needs to ensure that all activities
   related to private sector involvement are coordinated and moving in the same direction -
   especially aligning the work Project *8 titled "Partnerships for Integrated Environmental
   Management" which allocates C$425,000 for partnerships on greening the supph chain
   and innovative market-based models for capacity building in Mexico

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                 Govemmemal Ad\isor> Committee (GAC)
                       to the U S  Representati\e to the
             Commission for Environmenial Cooperation (CEC)

                      Ad* ice 200S-6: CEC Budget Reform
Full Financial Disclosure—The GAC supports the L'.S Government's efforts to
institutionalize full financial disclosure of all Secretariat expenses. Financial transparent is
fundamental for evaluation and identification of optimal budgetary allocations to support the
continuing vsork of the CEC  For a wide \anet) of reasons. \\e consider transparenffinancial
reporting and budgetary accountability to be vital for success of the CLC
Tabulated Matrix—The GAC recommends that future budgetarv, information should
include a tabulated matrix of program area allocations/expenses for the planned upcoming
years and for receni past >ears
•   This would facilitate examination of funding shifts and trends among programs, as
    activities and priorities change over time.
•   The unique nature of the CEC's Mexico liaison office should also be clarified b>
    describing the office's activities as they relate to the CEC's programmatic funding
Performance Measures—The GAC recommends incorporating performance measures in
the CEC budget and work plan in order to assess and clearl) demonstrate the effective use of
the Parties' financial resources.
LNEP Format—Overall, the GAC supports using the United Nations  Environmental
Program (UNEP) budget reporting template that was provided to the GAC as a possible
model for use with the CEC

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                 Gcnemmenlal Ad\isor>  Committee (GAC)
                       to the L S. Representative to the
             Commission for Environmental Cooperation (CEC)

                        Athice 2005-7; CEC Publications
Sufficient Guidance—The GAG supports the U.S. Government's attempt to streamline and
create accountabilii> in the CEC publications procedure.  However, the committee believes
there is enough guidance in the NAAEC for processing the \anet> of documents/reports
produced b> the Secretariat, such as the Article 13 reports, the Annual Report, and Program
Plan and Budget
•   Enhanced Coordination—The GAC recommends closer coordination between the L S
    Government, as a member of the CEC Council, and the Secretariat to prevent the
    development and issuance of misguided, inaccurate or ineffective reports
•   The GAC believes  that the essence of the "publications issue" mav ha\e emerged from
    the verv broad scope of topics and subject areas found in the CEC's uorkplan and past
    portfolio of activities.
•   Resolving workplan issues (i.e. defining and prioritizing future activities in the CEC's
    \\orkplan) may correct most of the Parties" concerns about publications
•   For this reason, the GAC believes the proposed U.S  publication procedures mav be
    overl) prescriptive and may not address the root problem.
Intragency Communications —The GAC recommends implementation of very strong
internal communications protocols among all U.S. government personnel (hat are actively
engaged with the Secretariat on mjriad issues
Early Involvement—The GAC believes that early detection and attention from the Council
is the best >*a> (o prevent misunderstandings prior to the development or release of CEC
reports.
Chain of Command and Recognition—The GAC supports ensuring a clear chain of
command emanating from the Council and flowing to the Secretariat for advance definition
of the Secretariat's overall activities and scope
•   The GAC believes that, once direction has been prov ided. it is important that a degree of
    independence be preserved for the Secretariat's performance of the prescribed duties and
    functions.
•   In nurturing mutually beneficial relationships among the Parties and the Secretariat, the
    GAC believes that it is important that the Council provide recognition  to the Secretariat
    for positive  performance whenever appropriate
•   Overall, the GAC believes that the issuance of objective, high qualirv publications can be
    a useful measure of Secretariat performance but is only possible with strengthened
    working relationships and clarity of purpose and roles

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                 Governmental Advisor)  Committee (GAC)
                      to the U.S. Representative to the
             Commission for Environmental Cooperation (CEC)

                     Advice 2005-8: CEC Working Croups
Current Working Groups—The G-\C recommends keeping working groups that were
created b> a Council Resolution or that arc necessitated b> a provision of the trilateral
agreement
"Sunset" Provision—The GAC recommends the establishment of a "sunset'  pro\ ision for
all other ad hoc groups, task forces or working groups
Mission Statement/Targe! Dale—The GAC recommends that any proposed working
groups be given a clearly expressed mission statement or goal with a target date for
completion of its mission or attainment of its goal.
•  The GAC recommends a provision for renewal contingent upon the Council's
   concurrence to avoid conflict with a sunset pro\ ision
•  The GAC believes that such provisions will help foster accountability and maintenance of
   mission-onented focus by all CEC  working groups
Puebla Pillars and Corresponding Working Groups—The GAC questions the value or
need for working groups to address the topics of Information for Decision-making and
Capacity-Building.  Information and capacitv -building are elements of most projects and. as
such, should be incorporated into the activities of most working groups
•  The GAC considers maintenance of the 10(6) Trade and Env ironment Working Group to
   be vital because this topic is at the core of the NAAEC and there is a unique contribution
   to the bodv of know ledge that emerges from this CEC focus

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