State Innovation Grant Program: Kentucky
Implementing Kentucky's Environmental Leadership Program -AVertical
Start-up Model with Multi-State Applicability (2005 Competition)
Project Background:
In 2002 EPA introduced the State Innovation Grant Program to support
efforts 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. A summary of the awards by year appears in the
table below.
State Innovation Grant Program Statistics, 2002-2007
I Competition Proposals Proposals
Year Submitted Selected
2002/2003 I 9Q i fi
Total Program
Funding ($)
$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
tion Grants website at httD://www.eDa.aov/innovation/statec
The Kentucky Department for Environmental Protection
(KYDEP) has established a strategic priority of facilitating
enhanced environmental performance by both Kentucky's
regulated and non-regulated entities (e.g., businesses,
municipalities, etc.). Under the current regulatory system,
facility performance is measured against minimum
regulatory standards and the system ensures the
maintenance of only minimum thresholds of protection.
Additionally, non-regulated entities who contribute to the
environmental health of the state through their voluntary
efforts are often at odds with regulated entities who are
interested in reducing their regulatory burden without
sacrificing environmental benefits. The lack of voluntary
efforts on the part of both regulated and non-regulated
entities has not encouraged cooperation. The current
system does little to foster environmental stewardship
through innovation focused on achieving greater
environmental performance and business efficiency.
Reflecting Kentucky's strategic priorities and with the
support from a US EPA State Innovation Grant, the
KYDEP is implementing a performance-based
environmental leadership program to enhance the existing
compliance-based regulatory structure through
encouragement of efforts to reach beyond compliance.
This program, titled KY EXCEL, will encourage
cooperation between regulated and non-regulated entities
(e.g., manufacturers and their supply chain) to improve
Kentucky's environment.
Project Description
The mission of Kentucky's environmental leadership
program is to promote, reward, and encourage superior
environmental performance throughout the
Commonwealth of Kentucky. The goal of the program is
to positively impact the quality of life for Kentucky
residents by encouraging continual improvement in
environmental performance through commitment,
partnerships, systemic management, and thoughtful growth.
The program members will enhance the environment and
society through public and private partnership, expansion
of collaboration through networking, the development and
adoption of newer, better manufacturing and control
NCEI
NATIONAL CENTER FOR
ENVIRONMENTAL INNOVATION
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technologies, and the application of sustainable strategies.
Specific program objectives are to:
• Improve comprehensive, multi-media compliance
among the regulated community.
• Reduce pollution and measure results.
• Enroll, recognize, and encourage leaders who commit
to improving Kentucky's environment.
• Sustain and continually improve results over time.
• Leverage Kentucky's environmental excellence as
an economic advantage.
• Strengthen Kentucky's posture as an innovative
state.
• Prepare Kentucky for a future of performance-
based environmental improvement.
• Build partnerships between Kentuckians (both
public and private entities) and with regional
neighbors.
• Improve efficiency and reduce costs for Kentucky
businesses and for the Department for
Environmental Protection.
• Align synergistic programs that encourage
leadership across all media.
• Document the design and implementation process
for use by other states.
KY EXCEL is designed to appeal to a broad range of
businesses, industries, and non-governmental organizations
(NGOs). By encouraging a diverse membership, the
program will provide an innovative opportunity to build
networks not only within like-businesses and NGOs, but
also across boundaries that currently exist between
regulated entities, NGOs, and government. Candidates
enter the program through the portal of the newly
established Division of Compliance Assistance where they
received a level of enforcement protection during the
assessment process via Kentucky statute. After completion
of entry requirements, regulated entities may choose to
participate in one of three membership tiers: Master,
Leader, or Partner. Each tier requires correspondingly
higher levels of environmental performance and provides
additional incentives for meeting/exceeding goals and for
completing state priority projects. In addition to the three
tiers, a fourth membership category will be established for
Advocates, who are typically non-regulated entities with a
strong interest in environmental improvement.
This grant-funded project will last three years until February
2009.
Connection to EPA's Goals
This program directly supports EPA's Strategic Goals as
well as several Cross-Goal Strategies. By improving overall
compliance performance and developing the concept of
environmental stewardship, the program specifically aligns
with Goal 5. In addition, the program supports EPA's goals
(Goals 1 and 2) by encouraging pollution prevention
practices and directly measuring the amount of pollution
reduced to each media. The program also will enhance
these goals (Goals 3 and 4) by identifying and rewarding
the completion of projects that specifically improve the
community through cooperative efforts. Cross-Goal
Strategies that are used in the program include developing
partnerships, sharing information through reporting,
networking, documentation, education, and rewarding
innovation in practices and technology.
Project Contacts:
Cheryl Taylor
Office of the Commissioner
14ReiUyRoad
Frankfort, KY 40601
(502) 564-2150 ext. 125 phone; FAX (502) 564-4245
chervl.tavlor(g)kY.gov
Betty Winter
US Environmental Protection Agency — Region 4
61 Forsyth Street, SW
Atlanta, GA 30303-8960
(404) 562-8279; FAX (404) 562-8269
winter.betty(g),epa.gov
Eileen McGovern
U.S. Environmental Protection Agency
Washington, DC 20460; MC (1807T)
(202) 566-2881; FAX (202) 566-2989
mceovem.eileen(g).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.shem@epa.gov
United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
(1807T)
October 2007
EPA-100-F-07-036
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