State  Innovation  Grant Program: Virginia
                      Infrastructure and Capacity Building for Improved  Incentive Development and
                      Delivery  for Performance-Based  Programs (2006 Competition)
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
    te  at httD://www.eDa.aov/innovation/statearar
Project  Background:

 The Virginia Department of Environmental  Quality
 (VADEQ)  seeks  to better  integrate  the Virginia
 Environmental Excellence Program (VEEP), a voluntary
 recognition and incentive program for facilities of all types,
 with EPA's National Environmental Performance Track
 Program (Performance Track). VADEQ launched VEEP
 in 2000 with three primary requirements for participation
 by a facility:  1) the development and adoption of an
 Environmental Management System (EMS); 2) a record
 of sustained compliance with environmental requirements;
 and, 3) a commitment to implement "beyond compliance"
 pollution prevention activities.

 Beyond these requirements there are three levels of
 participation in VEEP: Environmental Enterprise (E2), for
 partners in  the early stages of developing an EMS;
 Exemplary Environmental Enterprise (E3), for partners
 with successful   development  of an  EMS; and,
 Extraordinary Environmental Enterprise (E4), for facilities
 with an EMS that has been audited by an independent
 third-party and been  in place for a full cycle. Facilities
 accepted into Performance Track  are automatically
 considered VEEP E4 facilities.


 Project  Description

 VADEQ is  building capacity among die core regulatory
 programs within VADEQ to better integrate VEEP  and
 EPA's Performance Track in terms of policies, procedures
 and the delivery of incentives. These incentives have also
 been distributed  through  EPA's  Performance Track
 program. VADEQ believes the ultimate  result of this
 integration will be an overall improvement in environmental
 quality within the  State and a significant step towards  a
 long-term goal of  sustainability. The project will  provide
 opportunities forpublic involvement and stakeholder input,
 including non-governmental organizations.  The  systems
 approach and lessons learned from this project are expected
 to be readily transferable to other states and to EPA with
 only minor alterations to address organization-specific
 needs. The anticipated result represents a comprehensive
 and strategic approach to integrating the concepts and day-
 to-day operations  of a voluntary performance-based
 program within a state environmental  agency.
                          NCEI
                          NATIONAL CENTER  FOR
                          ENVIRONMENTAL INNOVATION

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 VADEQ received die project in 2006. The project is expected
 take three years to complete.


Connection to EPA's  Goals

 Because of its multimedia focus on recognizing and rewarding
 beyond compliance environmental results  at all types of
 facilities, this project will directly align with  EPA's Strategic
 Goal (Goal  5).  It will also indirectly support EPA's Goals
 (Goals  1-4) through the  environmental improvements
 resulting from increased participation in VEEP and PT and
 the increased implementation of incentives.

            Project  Contacts:
 For more information on the Virginia State Innovation
 Grant, please contact one of the individuals below:


 Sharon K. Baxter
 Pollution Prevention Director
 Office of Pollution Prevention
 Virginia Department of Environmental Quality
 629 E. Main Street
 P.O. Box 1105
 Richmond, Virginia 23218
 Office: (804) 698-4344; FAX: (804) 698-4533
 skbaxter@deq. virginia.gov


 Marie Holman
 U. S. Environmental Protection Agency — Region 3
 1650 Arch Street
 Philadelphia, PA 19103-2029
 Office: (215) 814-5463 FAX:
 Holmaii.Marie@epa.gov

 Scott Fontenot
 U.S. Environmental Protection Agency
 Washington, DC 20460; MC (1807T)
 (202) 566-2236; FAX (202) 566-2212
 Foiitenot.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
 watker.shem@epa.gov
United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
(1807T)
  November 2007
EPA-100-F-07-046

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