State Innovation Grant Program: Arizona
Arizona Environmental Performance Track: Increasing Membership by Lowering
Membership Hurdles, Building a Broader Base, and Improving Key Incentives
(2006 Competition)
ine t>iaie innovation urani rrogram 10 support enons
led by state environmental agencies to test innovative approaches for
achieving better environmental results and improved efficiency in permitting
programs. Between 2002 and 2007, the State Innovation Grant program
competition awarded over six million dollars to support 35 state projects that
test permitting innovation for a variety of regulated entities including several
small business sectors. Asummary of the awards by year appears in the table
below.
State Innovation Grant Program Statistics, 2002-2007
Competition Proposals Proposals Total Program
Year Submitted Selected Funding ($)
2002/2003
$618,000
$1.425 Million
$1.479 Million
Cumulative
$1.243 Million
$1.611 Million
$6.376 Million
"Innovation in Permitting" has been the theme of the State Innovation Grant
competition since its inception. In the last three competition cycles states
received awards for projects in the following three categories:
• The Environmental Results Program (ERP) is an innovative
approach to improving environmental performance based on a system
of the interlocking tools of compliance assistance, self-certification
(sometimes, where permissible, in lieu of permitting), and
statistically-based measurement to gauge the performance of an entire
business sector. The program utilizes a multimedia approach to
encourage small sources to achieve environmental compliance and
pollution prevention. (See: http://www.epa.gov/permits/erp/)
• Environmental Management System (EMS) is a system involving a
continual cycle of planning, implementing, reviewing and improving the
processes and actions that an organization undertakes to meet its
business and environmental goals. EMSs provide organizations of all
types with a structured system and approach for managing environmental
and regulatory responsibilities to improve overall environmental
performance and stewardship. (See: www.epa.gov/ems/info/index.htm)
• Performance Track is a partnership that recognizes top
environmental performance among participating US facilities of all types,
sizes, and complexity, both public and private.
(See: http://www.epa.gov/performancetrack/)
NCEI has provided awards also for projects testing watershed-based permitting,
and for permit process streamlining in past competitions. For more information
on the history of the programs, including information on solicitations, state
proposals, and project awards, please see the EPA State Innovation Grants
website at htto://www.eDa.aov/innovation/statearants
Project Background:
The Arizona Department of Environmental Quality
(AZDEQ) has enthusiastically supported EPA's National
Environmental Performance Track (Performance Track)
Program since its inception and has worked closely with
EPA to create Arizona's own Environmental Performance
Track Program. Even though ADEQ has already received
its first applications for membership, the agency continues
to evaluate and improve the program with a great deal of
input from the regulated community and EPA. ADEQ
has identified opportunities to involve a broader range of
the regulated community through the promotion of greater
understanding of EMS, development of a Performance
Track-like program geared toward the agricultural sector,
and improvement of permitting and regulatory flexibility.
Project Description
With an EPA State Innovation Grant, AZDEQ is
broadening the range of business sectors involved in
Arizona's newly formed Performance Track Program
through both existing and new initiatives designed
specifically for small business, small communities, and
agricultural enterprises. AZDEQ is providing a
coordinated, agency-wide approach to improving
environmental performance through the promotion of
EMS; investigation of the development of an EMS-based
program targeting the agricultural sector; and a response
to interest expressed by current Performance Track
participants in further development of the incentives which
streamline the permitting process and reduce reporting
obligations. Arizona's goal for this grant-funded project is
two-fold: 1) to assist, recognize, and re ward high performing
small businesses, small communities and agricultural
enterprises who express difficulty in qualifying for Arizona
Performance Track, but are willing to commit to
environmental improvement through the development of
an Environmental Management System or other similar
means for documenting and implementing environmental
improvements; and 2) to expand Arizona Performance
Track Program membership by improving what the
regulated community considers the most important
incentives; flexibility in permitting and reduction in
NCEI
NATIONAL CENTER FOR
ENVIRONMENTAL INNOVATION
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reporting obligations.
Development of Environmental Management System
Guidance and Templates
AZDEQ will survey small businesses and small communities
during routine inspections to determine their knowledge of,
and interest in EMS, and identify how guidance and templates
might encourage businesses and communities to adopt EMS.
Through the development and availability of guidance and
templates, ADEQ hopes to increase membership in Arizona
Performance Track by facilitating the development of an
approvable EMS - a Performance Track application
requirement. AZDEQ is reviewing existing EMS guidance
and templates to determine if they meet the standards set
by EPA in the National Performance Track program. If
these standards are not met, AZDEQ will modify the guidance
and templates accordingly and publish them on AZDEQ's
Performance Track web page.
Agriculture Performance Track
AZDEQ is communicating with members of the agricultural
community, along with other state and federal agencies (e.g.,
Arizona Department of Agriculture and EPA) about the
applicability of the existing Performance Track program to
agricultural operations in Arizona. A Performance Track-
like program for agricultural operations will contain similar
benefits to those demonstrated by the "traditional" program.
As a result of this approach, AZDEQ envisions the
development of EMS and quantifiable commitments as a
condition of membership. Once such a program is
implemented, AZDEQ will track the number of participants
along with the quantifiable environmental improvement
projects of its members.
Improvements to Permitting Flexibility and Reduced
Reporting Incentives
AZDEQ plans to meet with other state agencies that regulate
facilities (e.g., Arizona Department of Water Resources) to
explore the potential for permit flexibility or reporting
incentives. AZDEQ will also work to develop: guidance to
identify limitations of the incentives; permits to which
incentives are applicable; and, the information needed to
process incentive requests. AZDEQ will measure the success
of this endeavor by surveying applicants to determine
whether the new guidance on these incentives motivated their
decision to apply. If the incentives play a significant role in
applicants' decisions, AZDEQ will measure results of the
quantified environmental improvement project as a success
of the incentive improvements.
The project will take three years to accomplish.
Connection to EPA's Goals
This project directly supports EPA's Strategic Goals by (Goal
1) encouraging improved environmental performance of
regulated facilities, and by (Goal 5) promoting increased
environmental stewardship through the use of innovative
strategies.
Project Contacts:
For more specific information on the Arizona State
Innovation Grant, please contact one of the
individuals below:
Henry Darwin
Compliance and Enforcement Director
Arizona Department of Environmental Quality
1110 West Washington Street
Phoenix, Arizona 85007
Office: (602) 771-2338 Fax: (602) 771- 2251
Darwin.Henrv@azdeq. eov
Larry Woods
U. S. Environmental Protection Agency — Region 9
75 Hawthorne St.
San Francisco, California 94105
Office: (415) 972-3857 Fax: (415) 947-8026
Woods.Larry@adeq.gov
Scott Fontenot
U.S. Environmental Protection Agency
Washington, DC 20460; MC (1807T)
(202) 566-2212
Fontenot.Scott@epa.gov
Program Contact:
Sherri Walker
State Innovation Grant Program
U.S. Environmental Protection Agency
Washington, DC 20460 (MC1807T)
(202)-566-2186; FAX (202) 566-2220
walker.sherri@epa.gov
United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
(1807T)
November 2007
EPA-100-F-07-042
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