State  Innovation Grant Program:     New Hampshire
                         Encouraging Superior Environmental Performance through Management
                         Systems, Recognition,  and Rewards (2005 Competition)

                     ; btate innovation brant 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
Competition  Proposals  Proposals    Total Program
    Year     Submitted   Selected      Funding ($)
                                                            Project Background:
  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
     tion Grants website at httD://www.eDa.aov/innovation/state
 In 2005  New Hampshire received an EPA State
 Innovation Grant to promote better environmental
 performance through the use  of Environmental
 Management Systems (EMS). These EMS would help
 businesses address compliance requirements regulated by
 the New Hampshire Department of Environmental
 Services (NHDES), as  well  as  promote  better
 environmental business practices in areas not covered by
 federal and state regulations. In New Hampshire only a
 small percentage of business are in manufacturing sectors
 and most businesses are small businesses with over 90
 percent employing fewer than 50 people. The rural nature
 of the state and die tendency toward smaller businesses
 makes the encouragement and adoption of EMS difficult
 and complicated. The grant project will utilize a variety
 of educational and outreach approaches to encourage
 adoption of EMS  by public  and  private  sector
 organizations throughout New Hampshire. In addition,
 this project will develop a plan, and hopefully implement,
 a  performance-based reward and recognition program
 mirroring  US EPA's  National  Environmental
 Performance Track.
Project Description
 NHDES  is  working  to  encourage  systematic
 environmental management by NH business and local
 government through the use of a variety of innovative
 measures, including an Environmental Leadership
 Program. The program will attempt to leverage efforts
 by business and local  government  to achieve
 environmental compliance and  address  emerging
 environmental  problems  through a  voluntary
 performance-based  reward/recognition  program,
 intended  to  be similar  to  the  EPA  National
 Environmental Performance Track Program but with a
 higher tier for outstanding stewardship, as well as an on-
 ramp tier. This project offers the opportunity to capitalize
 on stakeholder input and support from local leaders to
 test concepts that could be implemented on a larger scale
 through Performance Track or in Performance Track-
                        NCEI
                        NATIONAL CENTER FOR
                        ENVIRONMENTAL INNOVATION

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 like programs in other states.  These concepts include
 partnering on  priority  issues, on-ramp design,
 performance assessment, and selection of benefits to
 encourage participation.

 The main components  of New Hampshire's project
 include both outreach and educational activities. The
 process, strongly driven by a stakeholder and advocacy
 group comprised of academics, business, government,
 and environmental organizations, will include strategies
 aimed at business, government, and the public to improve
 overall environmental management and  stewardship
 within New Hampshire. The project will include training
 seminars geared toward the public and private sectors,
 including NHDES staff, regulated entities on a sector
 basis, and  the  public. In addition, NHDES will
 implement an outreach program focused on university
 business schools, to emphasize the  importance of
 sustainability concepts for prospective business managers.
 NHDES will also focus on educational outreach for small
 and medium business enterprises (SMEs) that often lack
 knowledge of  EMS, as a tool to improve  their
 environmental stewardship through improved efficiency
 practices. Throughout this process, opportunities will be
 sought for larger business organizations to mentor SMEs
 through projects including but not limited to "greening
 die supply chain."

 The grant project's last component consists of die New
 Hampshire Environmental Leadership Program, a multi-
 tiered reward and recognition program loosely modeled
 after EPA's National Performance Track Program. This
 program is currentiy envisioned to involve three tiers;
 die first will allow  SMEs to gear up toward the higher
 performance level tiers:  tier 2, modeled after the
 Performance Track program for high-level performers,
 and a third tier. This higher tier would require a facility-
 specific contractual negotiation, owing to die difficulty
 of using a "one-size-fits-all" approach in a highly diverse
 but   small   population  like   New  Hampshire's
 manufacturing sector.

 This grant funded project will last diree years until
 September 2009.
              Connection to EPA's Goals

                New Hampshire's EMS project furdiers EPA's Strategic
                Goals by (Goal 5) promoting environmental innovation
                and stewardship through the use of an  innovative
                management  system   that  promotes  "beyond
                compliance" performance from industry sectors.

                Project Contacts:

                Bob Minicucci
                New Hampshire Department of Environmental
                Services
                29 Hazen Drive
                Concord, NH 03301
                (603) 271-2941
                rminicucci@des. state.nh.us

                Jean Holbrook
                US Environmental Protection Agency — Region 1
                1 Congress St., Suite 1100
                Boston, MA 02114-2023
                (617) 918-1816; FAX (617) 562-0816
                holbrook. jean @,ep a.gov

                Eileen McGovern
                U.S. Environmental Protection Agency
                Washington, DC 20460; MC (1807T)
                (202) 566-2881; FAX (202) 566-2989
                mcgpvem.eileentSleoa.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)
    October 2007
EPA-100-F-07-039

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