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                                 United States
                                 Environmental Protection
                                 Agency
                                Office of
                                Public Affairs (A-107)
                                Washington. DC. 20460
                   Volume 8
                   Number  3
                   May-June  1982
                             SEPA  JOURNAL
                                 Anne  McGill Gorsuch, Administrator
                                 Byron  Nelson 111, Director, Office of Public Affairs
                                 Charles D.  Pierce, Editor
                                 Truman Temple, Associate Editor
                                 Articles
EPA is charged by Congress to protect
the Nation s i,mil a,r and water systems
          date of national environ
mental laws, the Agency strives 10 for
mnldlt; and implement actions which lead
to a compatible balance between human
activities  Lintl the ability of natural
systems to support and nurture life

the tPA Journal is published bi-monthly
Hy  the  U  S  Environmental Pro:>
                   1 i»un!iny this
                       ! :y the
Directoi "f thr Oif.ic u! Management
      •.•let for  ihc iit'McKl erultmi A|in
1 984 Views expressed by authors do not
    .•	', reflei ; LPA policy  Contnbu
lions and inquiries should be adi
      ditoi IA 10/1 Waterside Mall.
401 M St  SW Washinyton. DC
70460 No  permission necessary fo
      e contents except copyrighted
photos and  othi;r inatenal
Administrator's Letter to the President

Introduction ...  3

The Health of  Our  Citizens ... 4

Better Science ...  6

Regulatory Reform  ... 7

State  and  Local  Involvement ... 8

Reduction  of Backlogs ... 10

Improved  Management  ...  12
. 2
  i
  O
  ;•'<
   ^
                                 Cover A cowboy and his horse are dwar
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                                 landscape-

                                 Opposite  The sun bursts through dark
                                 clouds over  Richmond Harbor. Calif
                                                                  Photo Credits  Photri. Steve Delaney
                                                                  Design Credits  Robert Flanagan and Ron
                                                                  Far rah
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The Honorable
Ronald Reagan
The White House
Washington, D. C.
Dear Mr. President:
This month marks the com-
pletion of my first year serving
as your Administrator of the
U.S. Environmental Protection
Agency. This report sum-
marizes some of the major
efforts and accomplishments
during that time to  further the
mission for which the Agency
was founded: the protection  of
our environment, and to do so
within the framework of the
initiatives of your Administra-
tion—regulatory reform, better
science, state and local in-
volvement, and improved,
more efficient management.
With your enthusiastic support,
EPA has made progress in
pursuing  its critically important
mandate.
   Significant environmental
gains have been registered in
the following broad  and
important categories:

The Health of Our  Citizens.
First and  foremost, EPA is
pledged to safeguarding the
health and welfare of the
American people and the pro-
tection of their environment.
Our reforms, in all instances,
hone true to that objective.
Improved efficiency at EPA
translates directly  into better
environmental protection.

Better Science.   Sound en-
vironmental regulation  can
only be as good as the scienti-
fic foundation upon  which it is
based. The Agency frequently
finds itself at the frontier of
health-related research, in an
ongoing  effort to determine
the risks  to humans  posed by
synthetic  substances and waste
products. To assure the best
possible scientific information,
EPA has undertaken a number
of reforms in the area of
research and development.
Regulatory Reform.  Regulatory
reform is one of the major
pillars of your economic re-
covery program and an area in
which EPA is making a sub-
stantial contribution. The
Agency has actively been re-
viewing its entire body of
regulations to eliminate need-
less red tape. The result of this
effort conservatively will
add up to a savings of
$6 to  7  billion as a  result of
our first year's work.
Elimination of Backlogs.   One
of the most immediate and
pressing tasks confronted upon
taking charge of EPA was the
elimination of costly, time-
consuming delays as the
Agency ground down under the
weight of its own backlog of
paperwork. With the adoption
of procedural  reforms and
more  businesslike management
structures,  all  backlogs have
been addressed and many have
been drastically reduced.
State  Partnerships.   We are
strengthening  positive working
relationships with state and
local governments. The major
laws EPA administers provide
for delegation of key program
responsibilities to the States,
should they decide to accept.
In accordance with your
philosophy of  New Federalism,
we want to make  sure that the
responsibilities transferred  are
substantive, and not token.
Improved Management. Finally,
we are improving the basic
organizational structure of the
Agency.  We have initiated re-
forms that promise to produce
a more streamlined  organiza-
tion—one that will be more
responsive in delivering the
highest quality environmental
protection at the lowest practi-
cal public expenditure.
  Such innovations in environ-
mental protection are a tradi-
tional Republican mainstay.
EPA was founded under a
Republican Administration.
Seven of its 11  years of
existence have  been under
GOP leadership, and the cause
of national conservation goes
back to President Theodore
Roosevelt, a Republican. This
Administration  carries forward
that tradition. I  am confident
that the quality  of America's
land, air and water will be
better for our efforts.
  We  have only made a  start
in this first  year, but it is  a
start in which we take pride.
         Sincerely,
         Anne M.  Gorsuch
         May 1982
                                                                                                           EPA JOURNAL

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Introduction
The creation of the U.S. En-
vironmental  Protection Agency
("EPA") on December 2,
1970, was the product of an
effort to streamline the Federal
Government and a desire to
respond positively to the en-
vironmental  concerns of the
country.
   Prior to EPA, the Federal Gov-
ernment's environmental con-
trol-functions had been spread
across several federal depart-
ments and agencies, including
Interior, Agriculture, Health,
Education and Welfare, and
the Atomic Energy Commis-
sion. Fifteen programs were
brought together to make up
the new Agency, which began
with a Fiscal Year 1971 oper-
ating budget of $303 million
and 7,198 permanent
employees. Today EPA's
operating budget is approxi-
mately $1.3 billion and em-
ploys just under 10,000 perma-
nent employees.
   EPA is charged with pro-
tecting the nation's environ-
ment by:

•  administering  laws passed
by Congress,

•  ensuring compliance with
those laws, and

•  performing research to sup-
port its activities.
  EPA is responsible for en-
suring compliance with these
laws and is committed to a
vigorous enforcement program.
The Agency's enforcement
philosophy is to encourage
voluntary compliance by com-
munities and private industry,
but to adopt a firm posture
where cooperation is not forth-
coming. Most laws adminis-
tered by EPA contemplate a
partnership with States to
perform direct enforcement
activities needed to meet en-
vironmental standards. States
now shoulder a substantial
share of this enforcement
responsibility.
   Science provides much of
 the base for environmental
 protection. EPA's research ac-
 tivities span the spectrum of
 research interests: developing
 and standardizing techniques
 to detect pollutants; assessing
 their  impact on human health
 and the environment; develop-
 ing and evaluating techniques
 for pollution control; and trans-
 ferring information to the
 public.
   These functions constitute
 the principal work of EPA. Its
 activities enter into nearly
 every aspect of daily life, just
 as the environment it protects
 affects  all Americans, as well
 as citizens of our neighboring
 countries.
   The major laws administered
 by EPA include:

 • Clean Water Act, as
 amended, is the basic authority
 for water pollution control
 programs. The goal of the Act
 is to make national waters
 fishable and swimmable.

 • Safe Drinking Water Act,  as
 amended in 1977, permits
 EPA to regulate the quality of
 water  in public drinking  water
 systems and the disposal of
 wastes into injection wells.

 • The Resource Conservation
 and Recovery Act of 1976
 ("RCRA") authorizes  EPA to
 establish regulations and pro-
 grams to ensure safe waste
 treatment and  disposal.

 • Federal Insecticide,  Fungi-
 cide and Rodenticide Act
 ("FIFRA"), as amended, di-
 rects EPA to regulate the
 manufacture, distribution, and
 use of pesticides and conduct
research into their health and
environmental  effects.

•  Toxic Substances Control
Act of 1976 ("TSCA"), pro-
vides authority to regulate the
manufacture, distribution and
use of chemical substances.

•  Clean Air Act, as amended
in 1977, provides the basic
legal  authority for the nation's
air pollution control programs,
and is designed to enhance the
quality of air resources.

•  Comprehensive Environ-
mental Response, Compensa-
tion and Liability Act of 1980
("Superfund")  establishes a
program to deal with release of
hazardous substances in spills
and from inactive and
abandoned disposal  sites.

•  Marine Protection,  Re-
search, and Sanctuaries Act of
1972  permits EPA to protect
the oceans from the indiscrimi-
nate dumping of waste.
MAY-JUNE 1982

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The Health
of  Our Citizens


                     .  we
                       drink
                      i  the
          winch .
Of all the tasks, large and
mundane, for which EPA is
responsible, the overriding
goal is the protection of the
physical health of the Ameri-
can people.  Every program ad-
ministered by the Agency
directly affects the air we
breathe, the  food we eat, the
water we drink and swim in,
and the land on which we live
 —in short, all those things
which  directly affect human
health.
  The Agency takes pride in
the substantial progress  which
has been made during the past
year toward making our world
a healthier, and therefore more
pleasant one in which to  live.
   Some of the Agency's most
notable accomplishments can
be found in  the actions EPA
has taken  in response to the
health threats posed by dis-
posal of pollutants,  including
hazardous waste.  Under the
Resource Conservation and
Recovery Act ( RCRA):

•  The almost 58,000 generat-
ors of  hazardous wastes are
now required to properly
identify these wastes, ensure
they are sent to legitimate
hazardous waste  management
facilities, properly package and
label them, and maintain vital
records of the amounts, types,
and ultimate disposition of
these materials.

•  Over 14,000 transporters of
hazardous wastes are required
to comply with a  manifest
system to ensure that ship-
ments  are sent to and received
by legitimate hazardous waste
management facilities.

•  Almost 10,000 hazardous
waste facilities are now regis-
tered with  EPA.  To determine
if these facilities are meeting
'EPA's  standards, over 2,000
inspections  have been carried
out by EPA Regional personnel.

•  Over half the states have
been  authorized  to carry out
their own hazardous waste
programs  on an interim basis.

   As part of EPA's efforts to
administer RCRA, EPA had, by
March 1982:

•  Issued compliance orders at
300 facilities, with penalties in
appropriate cases.
 *  Filed 62 civil actions in
Federal court.

   One of EPA's priorities in
1981 was also its newest duty:
to administer the Superfund
program which was enacted by
Congress in December 1980
to deal with the release of
hazardous substances in spills
and from inactive and
abandoned disposal sites.
   To implement Superfund,
EPA first had to establish an
effective organizational sys-
tem. To this end, the Agency:

•  Supervised the merging of
the RCRA  and Superfund pro-
grams under a  newfy establish-
ed Assistant Administrator for
Solid Waste and Emergency
Response.

•  Began new  accounting pro-
cedures to ensure proper fund
management.

•  Instituted a  Superfund com-
munity relations program to
promote the local support that
is crucial to achieving Super-
fund's  goals.

   Under Superfund, EPA can
take either removal or remedial
action. Removal actions are
short-term or emergency in
nature, similar to those under-
taken  to clean  up  accidental
spills of oil and hazardous sub-
stances. To date, EPA has
authorized $20.8 million for
removal actions  at 61 loca-
tions.
   The  remedial program is
intended to clean up problem
hazardous waste sites. By April
1982, the Agency had:

•  Allocated over $45 million
for cleanup at 48 sites.

•  Compiled and published  (in
October 1981) an Interim
Priority List of 115 sites.
                                                                          EPA JOURNAL

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                                Superfund's 115 top
                                priority hazardous
                                waste sites
• Mariana Islands
• Guam
• American Samoa
Depending on current circum-
stances at each site, funds are
available and clean-up work
can begin.

   EPA revised the National Oil
and Hazardous Substance
Response Plan to reflect and
implement the new authorities
under the Superfund legisla-
tion. In  addition to streamlin-
ing the  existing oil response
mechanism under the Clean
Water  Act, the  new plan sets
out the  criteria and procedures
for using Superfund money to
respond to hazardous sub-
stance spills and sites. The re-
vision is the cornerstone of the
Superfund program and is
written  in the spirit of regu-
latory reform. The provisions
are concise,  its  language is
nontechnical  and the require-
ments are flexible. In addition,
the plan establishes a strong
federal-state  partnership for
implementing the Superfund
program.
   Hazardous waste sites are
evaluated by  state and EPA
personnel, including  Field In-
vestigation Teams stationed at
EPA Regional Offices. Staffed
under contract by 180 trained
professionals with a  breadth of
technical skills, the teams car-
ried out 2,347 preliminary
assessments, 1,769 site in-
spections, and 279 field
investigations during 1981.
   Making the most  out of the
limited monies  in Superfund
requires that every effort be
made to have any private
parties responsible for a  site,
manage and finance its clean-
up.
   The Superfund legislation
authorizes judicial and ad-
ministrative action to compel
responsible parties to under-
take cleanup. Where use of
these mechanisms  does not
abate hazards, the Agency will
proceed with remedial actions
and is empowered to  seek
recovery of all the funds ex-
pended. EPA established a
task force in February 1982 to
notify as many responsible
parties  as had then been
identified of their potential
liability should fund monies be
used at sites with which they
were associated. EPA believes
these communications give a
clearer  picture of whether pre-
litigation  private-party cleanup,
administrative or judicial
orders to  compel clean-up, or
fund-response with cost-
recovery,  would be appropriate
at individual sites. As of April
1982, EPA had:

•  Issued  notice letters to over
850 individuals or firms at 75
sites on the list.

•  Issued  notice letters to 29
responsible parties at 7 sites
not on the list.

   While Superfund and  the re-
lated solid waste clean-up
activities received considerable
publicity in  1 981, there were
other less publicized, but  none-
theless  important, activities
taken by EPA to help protect
the health of our citizens.

*  EPA set in place a coordi-
nated fish monitoring strategy
to determine levels of toxic
contamination in the Great
Lakes, and surveyed sediments
in 17 harbors and river mouths
on the Great Lakes to  deter-
mine toxic  sources and
trends.

•  EPA prepared eight health
advisory documents to inform
state  authorities and water fa-
cility operators of health  risks
posed by unfamiliar contami-
nants. These include toxicolo-
gical information as well as
monitoring and removal
data.

•  EPA initiated the review of
ocean dumping regulations to
assess the comparative risks of
land versus ocean disposal.

•  To protect our water, EPA
 conducted 110 on-scene oil
 response actions, monitored
 over 5,000  removals, com-
 pleted over 2,000 spill preven-
 tion inspections and conducted
 25 damage assessments.

 * Final  standards for disposal
 of Uranium Mill Tailings at in-
 active sites are complete.

 • In EPA's toxics program,
 actions are being taken to ob-
 tain more testing data when
 valid concerns about  new
 chemicals are raised. EPA
 banned importation  of two
 new potentially dangerous
 chemicals pending submission
 of additional data.

 • Emphasis has been placed
 on finding acceptable PCS dis-
 posal methods. Two high-
 temperature commercial in-
 cinerators for PCBs  have been
 approved, as well as incinera-
 tion aboard the ship Vulcanus.
 EPA also has approved two
 chemical destruction processes
 which reduce PCBs to easily
 disposable substances and
 allow the residual oil to be
 cleaned and reused.

 • In January 1982, the U.S.,
 including two EPA  representa-
 tives, participated in an inter-
 national meeting'of experts
 concerning protection of
 stratospheric ozone. Further
 cooperation is anticipated in
 this area.

 • EPA has released a long-
 awaited study of environment-
 al pollution in the Niagara
 frontier which affects both the
 U.S. and  Canada. This com-
 prehensive review reveals that
substantial progress has been
 made in  controlling many of
the water contamination prob-
 lems in the Niagara frontier.
 EPA is undertaking additional
actions to provide further
assistance in the area.

 •  Both the  Administrator and
 Deputy Administrator have
been personally involved in
high-level and technical meet-
ings with Mexican officials to
further U.S.-Mexican coopera-
tion on environmental issues
and  to develop new ap-
proaches to the existing air
and water pollution problems.
MAY-JUNE 1982

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Better
Science
Without

                       "' tho
EPA's new administration
firmly believes that there  can-
not be good  regulation without
good science. Without ade-
quate scientific understanding,
steps necessary for the protec-
tion of human health might
never be taken and, converse-
ly, wholly unnecessary regula-
tions might  be foisted  upon
the public. To avoid these pit-
falls, EPA is taking steps to
improve the  scientific basis of
its regulations, including
selecting 15  to 25 rule pro-
posals each year for special
review by its Science Advisory
Board.
   Other activities to produce
better scientific  and technical
understanding include:

•  Insisting that any proposed
regulation whose rationale  de-
pends on scientific assump-
tions undergo a thorough peer
review by knowledgeable
scientists to  test  the validity
of those assumptions; and

•  The production of certain
Air Quality Criteria documents
that serve as the  primary
scientific basis for the estab-
lishment or  revision of nation-
al ambient air quality  stand-
ards under the Clean Air Act:
CO (Carbon Monoxide), No.
(Nitrogen Oxides), HC (Hydro-
carbons), SO./PM (Sulfur
Oxides and Particulate
Matter).

   Comprehensive health as-
sessments are near completion
for seven chemical solvents:
Carbon Tetrachloride,  Methyl
Chloroform,  Methylene Chlo-
ride, Chiorof lurocarbon 113,
Tetrachloroethylene. Trichloro-
ethylene, and Toluene. This
information will be submitted
to the Science Advisory Board
for public and peer review.
This is the first time EPA has
prepared a single document
which addresses the varied
scientific health assessment
needs of EPA's many regu-
latory programs.
   Several projects (which  in-
fluence  the Agency's approach
to health and risk assessment)
are in varying stages of com-
pletion:

•  Exposure assessment guide-
lines have been developed for
Agency-wide use.

•  Guidelines for mutagenicity
risk assessment have been re-
viewed and are being revised
based on the public comments.
They will  receive peer review
by the Science Advisory Board.

•  Guidelines for risk assess-
ments on reproductive toxicity
are under development. A
workshop  has been success-
fully completed and proceed-
ings have been published.
Notably, this workshop in-
cluded prominent academic
and industry scientists and is
a cornerstone for the continued
development of the Agency's
reproductive toxicity guide-
lines.

   These projects serve to
bring uniformity and consist-
ency to future Agency risk
assessment activities. The  peer
and public reviews afford in-
creased opportunity for indus-
try and academic  involvement
in the development of the risk
assessment process.
   Further steps toward better
science  include the following:

•  EPA sponsored an Inter-
national Hazardous Waste
Symposium  in October  1981,
The Symposium contributed
significantly to advancing
world-wide knowledge of
proper methods for dealing
with the hazardous  waste dis-
posal problem.

•  EPA participated in the Or-
ganization for Economic Co-
operation and Development
("OECD") Chemicals Program.
In  June 1981, the OECD Coun-
cil reached an agreement bind-
ing on member countries that
test data on  chemicals
produced in one country will
be accepted as valid  in  all
others for assessment  pur-
poses.

•  Under the U.S.-Canada
Memorandum of Intent on
Transboundary Air Pollution,
five bilateral work groups un-
der EPA chairmanship  are pro-
viding technical support for the
negotiations. The  final techni-
cal reports will assist the
Administration in  its  negotia-
tions and in the resolution of
major scientific uncertainties
concerning acid precipitation.

•  EPA completed analysis  of
14 chemicals  leading  to  the
development of water quality
criteria documents;  initiated
research on  the toxic effects  of
some organic compounds; and
gathered additional scientific
data to revise criteria docu-
ments for the 65 water  pol-
lutants which will form the
basis for the development of
water quality standards.
                                                                                                          EPA JOURNAL

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 Regulatory
 Reform
 When the Reagan Administra-
 tion took over EPA manage-
 ment, it found that  success  in
 protecting the environment
 appeared to be measured by
 the ever-increasing amounts of
 tax dollars being spent on
 producing regulations. A pro-
 gram of vigorous regulatory
 reform and  relief was clearly
 necessary. The Agency's po-
 tential to provide regulatory
 relief to the American
 economy amounts to as much
 as  $6-7 billion in direct costs.
 Within this  opportunity, top
 Agency management had two
 goals:

 •  To  focus on activities  that
 would produce significant en-
 vironmental protection without
 stiffing economic growth; and

 •  To revise existing regula-
 tions to  provide industries and
 states greater flexibility in
 meeting our nation's environ-
 mental goals.

   Since beginning  its regu-
 latory reform program, EPA
 has produced significant pay-
 offs. Without compromising its
 responsibility to protect the
 environment, EPA has suc-
 cessfully implemented the
 following regulatory  reform
 and relief measures:

 •  EPA responded to the Presi-
 dent's request for regulatory
 relief for the auto industry by
 announcing  the Agency's in-
 tent to change several regu-
 latory  requirements.  As a
 result, air quality protection is
 being achieved at a  greatly
 reduced  regulatory  cost bur-
 den. Reiief  measures taken
 include: consolidating the  CO
 and NO. waiver proceedings;
 assuring adequate time to meet
 regulatory requirements; al-
MAY-JUNE 1982
A  program  of vigorous
regulatory reform and re-
lief  was  clearly  neces-
sary.
lowing manufacturers to self-
certify high-altitude vehicles
and forego assembly-line test-
ing at  high altitude; reducing
the number of annual assem-
bly-line tests:  streamlining the
preproduction  testing program;
deciding not to pursue on-
board controls for refueling
hydrocarbon emissions, and
deferring the 1983  truck noise
standard to 1986. These initia-
tives, and others planned to be
taken,  should save manufac-
turers and consumers more
than $4 billion over the  next
five years.

•  EPA has made progress on
paperwork  reduction. In  Octo-
ber 1981, the Agency  com-
pleted  an inventory  of its
information collection activi-
ties, and for the first time, now
has a complete information
collection budget linked to  its
fiscal budget.   In specific
program areas, improvement
has been dramatic. For
example, reporting burdens
under RCRA have been re-
duced  by about 3 million hours
without affecting program
quality.

•  The Agency established a
small business ombudsman in
EPA's Office of Policy Analysis
to help small businesses that
experience difficulties in
meeting or understanding
regulatory requirements.

•  EPA is aggressively moving
to expand the cost savings
from emissions trading. The
best known example of
emissions trading is the use
of "bubble" trades—so named
because a  firm  is allowed to
place an imaginary bubble over
all its sources of air pollution
at a  particular site and develop
its own alternative for reduc-
ing air pollution to the total
amount allowed  under the
bubble. These trades can be
accomplished within a plant or
firm or by transactions among
firms.
     To  date, 19 air "bubbles"
have been approved by EPA.
These will save industry
approximately $40 million.
At least 90 others are under
development and could pro-
duce savings of $200 million.
In addition, the  adoption  of
generic emissions trading rules
by many states will produce
greater  reliance  on the trading
process  and  is expected  to
produce  savings  of nearly
$1  billion.

•  EPA  has reduced the time it
takes for the Agency to act on
State implementation Plan
(S!P) revisions through new
processing  techniques  that in-
clude conducting administra-
tive  procedures in parallel  with
the state. EPA now comments
on proposed SIPs concurrently
with the state's  public com-
ment period (instead of after).
The  improved techniques have
resulted in a savings of up to
70% over the previous aver-
age time.

•  EPA's toxics program is en-
couraging negotiated testing
agreements as substitutes for
rulemaking, to allow appro-
priate and necessary testing  to
begin earlier and test data  to
be generated more quickly.

•  Similarly, the Agency's tox-
ics program is issuing test
methodologies as guidelines
rather than as requirements.
This provides greater flexibility
as well as the ability to take
advantage of the latest test
methodologies.

•  Progress has been made in
overhauling the much criticized
and expensive sewage treat-
ment construction grants pro-
gram. This regulatory reform is
based on the idea of producing
only those regulations that are
mandated by law or which are
necessary for effective  pro-
gram management. Guidances
are to be discretionary—not
regulations in disguise. A
serious problem in  years past
was  lack of local funds to
provide  plant maintenance.
EPA's new regulations require
the approval of a user-charge
system before a community
receives money for certain
grants. This approach  will fos-
ter fiscal responsibility and
should provide environmental
benefits for many years to
come.
  Major reforms in the con-
struction grants program were
accomplished through EPA's
1981 legislative initiatives to
streamline the program, re-
direct its focus from public
works to environmental needs.
and reduce tho long-term
federal commitment by 60%
from $90 to  $36  billion. As a
result of prompt Congressional
action on this effort, the pro-
gram was reauthorized for
FY 83-85 at  $2.4  billion
annually  (down from $5 billion
in FY 82). Over a three-year
phase-in  period, eligibility
categories will be restricted to
present  treatment needs, the
Federal  share will  be reduced
to 55%, and  states will be
given greater  flexibility in
allocating funds.

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State and  Local
Involvement
EPA's new leadership views
the Agency's relationship with
states and localities as a true
partnership. The previous pat-
em of EPA dictating to the
states, treating them at best as
junior partners, not only  makes
for bad relations—it also
makes for bad regulations, and,
therefore, poor environmental
protection. This Administration
believes that the people  most
affected by a problem should
have a significant voice in de-
ciding the  solution. Therefore,
one of EPA's primary goals in
this first year has been to in-
crease the involvement of
state and  local governments in
the Agency's decisionmaking
and actual operation of pro-
grams for pollution abatement
and control. In seeking to dele-
gate more authority and  de-
cisionmaking to the states,
The  people  most
    •cted  by  a  problem
should  have a signific
voice in  deciding  the
SOlu!
EPA has accomplished the
following:

•  More than doubled the num-
ber of states which now operate
the New Source Performance
Standards program.

•  Increased by 50% the states
which operate the Hazardous
Air Pollutant program.

•  Increased by 60% the
states which have interim
RCRA Phase I  authorization.

   Perhaps most importantly, a
combination of Federal  pro-
grams and state initiatives
have built, over the last de-
cade, a highly-trained, well-
motivated workforce in  state
and local environmental agen-
cies across the country. The
air quality program alone has
invested nearly one-half billion
dollars in  state programs.
States have moved into this
area strongly, strengthening
their statutes and providing
real financial support, to the
point where Federal contribu-
tions now represent less than
half of the operational  costs of
state environmental programs.
 Solid Waste

Under RCRA, the states have
the primary responsibility for
managing solid, including
hazardous, waste. The first
task is to gear up the priority
hazardous waste regulatory
programs for which Congress
intended states  to be primarily
responsible.  In FY-1981 and
1982, EPA will provide a total
of $71.7 million to  the states
for developing their own regu-
latory programs and will com-
plete the basic regulatory
framework.
   The  second major task fac-
ing states under RCRA is to
evaluate  nonhazardous waste
disposal  facilities on the basis
of EPA criteria which place
restrictions on facilities that
allow open burning or are in
wetlands, floodplains, habitats
of endangered species, or re-
charge zones for principal
sources of local drinking
water. EPA has  published the
first installment of  an inven-
tory of nonhazardous disposal
facilities that fail to meet the
criteria.
   The third  task is to develop
and  implement  comprehensive
plans for managing non-
hazardous solid waste. Devel--
opment  of the state plans has
been a  long and arduous
process.  To aid these efforts in
FY-1981, EPA:

•  Provided technical assist-
ance and $8 million in finan-
cial assistance to the states to
help them develop their plans.

•  Received  state plans from
over half the states for review
according to EPA guidelines.

•  Approved 14 state plans
with the remainder expected to
be approved in 1982 and 1983.
Water

As the result of a recent legal
settlement between EPA and a
number of industries, the
burden of underground injec-
tion control regulations has
been lessened without weaken-
ing their effectiveness.

•  There are now more flexible
standards for judging the
mechanical integrity of injec-
tion wells, a reduction in
routine monitoring  require-
ments by well operators and
greater  leeway for states to
define  the extent of their
underground drinking water
sources. These changes are ex-
pected to result in economic
savings of $65 to s75 million
over the next five years.

•  During 1981 seven addition-
al  states agreed to  accept
delegation of the construction
grants program, br'rnging the
total to 45. This is an import-
ant step toward the  Presi-
dent's goal of a New
Federalism.
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Toxics and Pesticides

•  Improved information flow
among states has been fos-
tered. Through a grant to the
National Governors Associa-
tion  ("NGA"), states now have
access to the computerized
Chemical Substances  Informa-
tion  Network. NGA also acts
as a  clearinghouse to  publicize
state toxic substances manage-
ment practices and to  allow
experts from one state to ad-
vise  their counterparts in
another.

•  EPA  has employed  retired
engineers in its ten Regional
Offices to help states  and local
districts inspect  asbestos in
schools and advise on appro-
priate containment or removal
techniques where warranted.
Air, Noise and Radiation

•  Work is underway to trans-
fer from EPA to the states
responsibility for ensuring that
new plants satisfy new source
performance standards
("NSPS") and National Emis-
sion Standards  for Hazardous
Air Pollutants ("NESHAPS").
Currently, approximately
67% of the  NSPS and
NESHAPS  compliance work
is  being  administered either
partially or fully by the states.
Systems  now  in place will
result in  this  figure totalling
over 87% by  the  end of
FY 1982.
   In addition  to the  Clean
Air Act,  the  Office  of Air,
Noise, and Radiation also ad-
ministers  and manages
national  programs  relating
to  noise abatement and control
and radiation  programs.  In
1981, the Office of Noise
Abatement  and  Control  be-
gan phasing out the  Federal
noise  program.

•  Twenty-one states re-
quested training assistance
as EPA transfers control  of
noise  programs  to  them.
Nine state  training sessions
have already  been conducted
with 16 more scheduled in
FY 82. Approximately 500
state and local noise officials
will have been trained before
the noise  program  is  com-
pletely phased out as  a federal
responsibility.
•  Approximately $1.5  mil-
lion  in noise control equip-
ment was  made available to
states,  localities,  and
universities from EPA.

•  Fifteen   states requested
assistance  from EPA  in
.designing   public support
programs.

•  Twenty-four  states will
have active noise abatement
programs  in place by Sep-
tember  1982.

•  EPA  provided  support  to
the Conference of State Radi-
ation Program Directors in
the form of technical expertise
and  financial grants.

•  The Agency has assisted
several  states and  Indian
nations  on  special radiation
surveys by direct involvement
or by equipment loan.
MAY-JUNE 1982

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Reduction
of  Backlogs
Were               wed
               i  .'t unities
for  it            wd
    •mi  in  environmental
                re I linve
An  unglamorous,  but  none-
theless important,  task facing
EPA's  new  leadership in
1981  was the elimination  of
backlogs  which  had accumu-
lated  throughout  Agency
programs. Were these back-
logs allowed to stand, or
worse, to continue  growing,
opportunities for   innovation
and  reform  in environmental
protection would have been
thwarted.  This  was not per-
mitted to  happen.  Significant
progress  has been  made in
this area.

•  In  the past three months,
the Office of Pesticides and
Toxic Substances  has  reduced
its backlog  of chemical re-
views from  417 to 123, a
71%  reduction.  Similarly,
the backlog  of amended regis-
tration reviews has been re-
duced 56%.

•  EPA is now firmly on
schedule to  produce  six
effluent guidelines  standards
this  fiscal year and an
additional ten  next year.
In the previous five  years,
only one such  guideline,
although  required by  law,
had been produced.

•  In  1979,  the Agency re-
ceived 70 applications  for
301 h waivers  under  the
Clean  Water Act.  These are
requests  from  publicly
owned treatment works for
a variance from secondary
treatment requirements when
discharging  into  marine
waters. Of these  70 applica-
tions, 30  involved discharges
of more than 16 million gallons
per day.  When  the  new Ad-
ministration  took  office  last
year, a few of these applications
were finally coming to
completion,  but the majority
still remained incomplete. Under
the new  leadership, half of
the 30 major projects were
completed  by  the end  of
calendar  year 1981  and the
remaining major  projects are
scheduled for  completion
by October 1, 1982. The 40
smaller projects  can  be
evaluated by the  end of De-
cember 1982.

•  The backlog  of State Imple-
mentation Plans for  air  quality
was  reduced by more than
63% between August 1981
and  April 1982 and should
be eliminated altogether  by
mid-1982.

•  In May 1981, EPA had ap-
proximately  500 wastewater
treatment construction grant
projects on  which final  audit
issues had not been resolved.
The backlog had accumulated
in  spite of the  fact that each
audit was supposed to be re-
solved within six months.
Prompt action was required.
As of February 1 5, 1 982, there
were only 14 projects which
had not been resolved within
the six-month period.
•  Prior to  the  current Ad-
ministration, EPA had missed
five  legislative deadlines  for
decisions on testing of priority
chemicals.  The Agency  is
now on schedule in addressing
the backlog of testing de-
cisions and responding to
new recommendations.

•  The Office of Toxic
Substances' publication of
notices of  receipt  of  pre-
manufacture notices and its
review of exemptions for test
marketing  new substances
have been streamlined and
now comply with statutory
deadlines.

•  Some of the most dramatic
reductions  in backlogs have
been achieved in EPA's pesti-
cide program. All registration
programs have seen reduc-
tions (ranging from  40% to
100%) in the backlogs which
existed when the new Ad-
ministration took office.
10
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                               Improved
                               Management
          •
instituted  to  '
                     •  iud.
          ind ;it.niso.   nnai
streamline op(;r;itt:
Effective environmental
protection requires that every
dollar  be  spent  wisely  and
efficiently. We owe  it not
only to our  environment, but
also to the  American tax-
payers.
   Accordingly,  new  proced-
ures have been  instituted
to control costs, eliminate
fraud,  waste and abuse,  and
streamline operations to  make
them  more  efficient,  effec-
tive and responsive.
   Some of  the  more note-
worthy  management  accom-
plishments at EPA during the
first year  of  the Reagan  Ad-
ministration  include:

Budget Reform

The 1983 budget increases
funding for hazardous waste
and Superfund by $36 million,
maintains  a  strong  enforce-
ment program, preserves es-
sential research and develop-
ment, maintains the wastewater
treatment  construction grants
program at  $2.4 billion,  and
substantially  reduces  the
regulatory burden on  state
and local  governments.
   The 1983  budget is a
sound  and effective environ-
mental protection plan which
will cost $85 million  less
than in 1982 and $237 mil-
lion less than in  1981. Re-
ductions in the last two years
are in  marked contrast to
the increases which had
occurred in  every prior year
of EPA's existence.

Management Accountability

The Agency  designed and
began  operating  the Ad-
ministrator's  Accountability
System,  which enables the
Administrator to identify at a
glance:

•  major initiatives  being
carried out on schedule,

•  areas  where successful
performance  may  require
additional attention,  and

•  the  specific manager  re-
sponsible  for  results.

Grants Administration

The  Agency  is revising  grant
regulations and procedures
to strengthen management
and  simplify  administrative
requirements  for  recipients.
This will streamline  the
process while better guarding
against  waste,  fraud, and
abuse.  The revisions will
also  eliminate  unnecessary
requirements,  limit the  paper-
work required  of grantees,
and  develop  consistency
across  all of EPA's financial
assistance  programs.

Contracts Administration

EPA  has institutionalized the
review  and approval of con-
tract expenditures  at the
highest Agency levels
(Assistant Administrators)
to ensure that  Agency re-
sources are used in the most
efficient  and  cost  effective
manner.

General Administrative
Procedures

The  Agency has eliminated
or simplified  many of  its
forms and  records,  is auto-
mating aspects of its  person-
nel and financial management
systems, and  has  refined
and  fully automated the
Merit Pay  System.
 Consolidated Financial
 Assistance

 A  consolidated  financial
 assistance program will make
 it  easier  for states to do
 business  with EPA.  The con-
 solidation  allows  a  single
 application  for  all program
 funds, a  single  comprehen-
 sive public  review, a  coordi-
 nated  EPA  review,  consoli-
 dated  reporting  by the
 grantee,  a single  evaluation,
 and  an  integrated audit.
 The  mechanism is flexible
 so that a state may  consoli-
 date some of  its assistance
 while  continuing to  be
 eligible for  categorical
 awards under  other programs.
   Efficiencies concerning
 cash  management, overtime,
 leased space, publication dis-
 tribution,  audit resolutions,
 telephones, travel expenses,
 procurement,  contract proc-
 essing,  library subscriptions,
 printing and the purchase of
 capital equipment  have been
 undertaken,  resulting  in sav-
 ings  of  hundreds  of
thousands of dollars to the
American taxpayer.
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