State Innovation Grant
                    Program
                    Rhode  Island:
                    Auto Salvage  Environmental  Results  Program:
                    Improved  Compliance and Performance  Through
                    Innovation
The EPA State Innovation Grant Program was established in 2002 to help strengthen EPA's innovation partnerships
with States and Tribes and is a direct result of the Agency's innovation strategy, Innovating for Better Environmental
Results: A Strategy to Guide the Next Generation of Innovation at EPA (http://www.epa.gov/innovation/strategy).
To support the Innovation Strategy, the 2002 grant program focused its efforts on projects that related to one of
four priority issues: reducing greenhouse gases, reducing smog, improving water quality, and reducing the cost
of drinking water or wastewater infrastructure.  In addition, EPA sought projects that test incentives that motivate
"beyond-compliance" environmental performance, or move whole sectors  toward improved environmental
performance. This series of fact sheets features the State projects selected for funding under the Grant Program.
            Contacts:
Thomas E. Armstrong
Rhode Island Department of Environmental
Management (DEM), Office of Technical
and Customer Assistance, 235 Promenade
Street, Suite 250; Providence, Rhode Island,
02908-5767,
Thomas.Armstrong@dem.ri.gov
Chris Rascher
US EPA Region 1, Boston, MA,
rascher.chris@epa.gov
Scott Bowles
US EPA National Center for Environmental
Innovation, Washington, DC
202-566-2208, bowles.scott@epa.gov
Background
Human health and environmental risks associated with auto
salvage operations are diverse and variable — arising from a broad
array of physical, chemical, and biological hazards. Such hazards
include the potential for fire or explosion at improperly managed
sites; the transmission of diseases where yard areas serve as vector-
breeding habitats (eg. mosquitoes); soil, surface water and
groundwater contamination resulting from the improper
management of solid and hazardous waste, including mercury
switches; and air releases of asbestos fibers, fugitive dust and/or
volatile organic compounds. Building upon  existing partnerships
and incorporating knowledge from recent successes within the
Rhode Island Automotive Refinishing Environmental Results
Program (ERP) now underway, and Underground Storage Tank
and Exterior Lead Paint Removal ERP initiatives now under
development, the  Rhode  Island Department of Environmental
Management's (DEM) non-regulatory Office of Technical and
Customer Assistance (OTCA) seeks to advance the ERP concept
by applying "lessons learned" to a currently under-regulated, EPA
priority industry sector — auto salvage yards.
                                                          NCEI

                                                          NATIONAL CENTER FOR
                                                          ENVIRONMENTAL INNOVATION

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Project Description

OTCA's vision is to reduce environmental health risks
by improving regulatory  efficiency and  industry
compliance  through a comprehensive,  multi-media
program patterned after the Massachusetts Department
of Environmental Protection's ERP  model and
consisting of three  parts:  1) facility certification, 2)
statistically-based performance measurement, and 3)
on-site compliance monitoring, pollution prevention
and technical assistance. DEM regulatory stakeholders,
industry representatives  and project partners will be
recruited to  assist OTCA in reaching a goal of 75%
industry-wide  voluntary certification with a 20-40%
minimum measurable improvement  in  selected
environmental business practice indicators (EBPIs) in
the early stages of the program.  EBPIs will be selected
to assess  improvements (relative  to  baseline
conditions) in  industry performance in air, water  and
RCRA compliance as well as pollution prevention; the
potential for release prevention, emissions reduction
and human  health/environmental protection will be
key considerations. Outcomes will be measured using
the statistical approach developed for the RI Auto Body
ERP including:
•      statistically determined number and randomly
       selected locations for baseline and post-
       implementation compliance audits (given pre-
       specified  levels of statistical confidence, power
       and compliance rate proportions)
•      generally  accepted methods for data  analysis
       and EBPI comparisons
•      summary reports that outline findings with
       appropriate descriptive  statistics.

Benefits of the Project

The proposed approach allows DEM, for the first time,
to take a comprehensive, multi-media, sector-based
approach to environmental  compliance and  pollution
prevention for this sector, producing these benefits:
•      Quantifiable Improvements. OTCA's goal is to
reduce threats  posed  by  physical, chemical and
biological hazards to the greatest extent possible with
             75% industry participation and a 25-40% measurable
             improvement in environmental business practice
             indicators within two years.
             •      Administrative Efficiency and Program Costs.
             Major improvements  in administrative efficiency
             naturally occur as a result of implementing the ERP
             model. By taking a comprehensive, multi-media sector-
             based approach, agency staff can spend more of time
             on priority sectors/facilities and unlicensed operations.
             •      Costs/Efficiency Improvements for Regulated
             Entities.  Costs  associated with the improper
             management  of  waste materials or  being  in
             noncompliance can be significant. By participating in
             the program, members of the regulated community can
             take advantage of an  opportunity to  come  into
             compliance with all applicable requirements while at
             the same time receiving free  on-site/telephone
             consultation  compliance  assistance   support.
             Participants  will also benefit from plain-English
             guidance documents (certification workbook, brochure,
             fact sheets) and cost-saving pollution prevention
             technical assistance.  Though regulated entities may
             incur some initial costs in terms of facility upgrades to
             come into compliance with existing regulations, long-
             term savings and efficiencies should be significant.

             Project Plan

             The start date for the Auto Salvage Yard ERP project
             was August  1, 2004, and the project duration is
             expected to last three years. ERP certification materials
             are expected to be filed with DEM in the third year of
             the project, and every two years thereafter.
United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
   January 2005
EPA-100-F-05-010

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