Environmental  Results Program
                         (ERP)
                         An  Overview
       The Environmental Results Program (ERP) is a performance-based
 regulatory approach designed to improve environmental compliance and
 performance in specific industry sectors. ERP is an effective way for states to
 manage numerous small pollution sources that have potentially large cumulative
 impacts. It is a multimedia approach to implementing environmental regulations
 through a combination of sector-focused compliance  assistance, self-
 certification, enforcement, and statistically-based performance measurement.
       ERP places accountability for environmental management on regulated
 facilities - regulators educate facilities about their environmental impacts and
 compliance obligations as well as best practices to alleviate potential adverse
 impacts. Facilities are then asked to  self-evaluate and certify compliance. By
 conducting "before and after" inspections and applying statistical analysis,
 regulators can verify compliance, measure and track environmental
 performance, determine priorities, and leverage limited inspection and
 enforcement resources.
       State and local governments implement ERP in different ways.  Some
 states have adopted ERP as a mandatory program  requiring self-certification of
 all facilities in a sector.  Some states have made it voluntary, encouraging
 facilities to participate in order to obtain the benefits of compliance assistance
 and the certainty of knowing their compliance status.  In some cases, ERP has
 been used as an alternative to  permitting for large numbers of small facilities.

What are the  key elements of ERP?
  The following key elements of ERP and their associated tools are directly linked.

        Multi-media compliance assistance  by regulatory agencies through
        compliance assistance workshops and  plain language workbooks
        and checklists
        Self-certification  of compliance by businesses
        Statistically-based environmental  performance measurement
        through baseline inspections and post-certification inspections at
        randomly selected facilities,  as well as through targeted inspections and
        evaluation of sector-specific indicators to track performance and
        compliance.

  Compliance assurance and enforcement is an integral part of ERP that
  underlies all three of these key elements.
 States have initiated or implemented ERP in the following sectors:
     Autobody/Repair
     Auto salvage yards
     Dental facilities/Mercury
     Dry cleaning
      Oil/Gas Extraction Wells
      Photoprocessing
      Printing
      Underground storage tanks/
      Retail gasoline sales
 States are also exploring the possible application of ERP to emerging sectors
 such as animal feeding operations (AFO) and underground injection control
 (UIC) wells.

What States have initiated or implemented ERPs?
     Delaware
     Florida
     Illinois
     Indiana
     Louisiana
     Maine
Massachusetts
Michigan
Minnesota
Nevada
New Hampshire
New Jersey
Rhode Island
Vermont
Virginia
Wisconsin
                                             Why ERP?
                                              Many states have initiated or are planning to implement the
                                              Environmental Results Program (ERP), because it helps regulators
                                              reduce public and environmental health risks by:
                                                 •   Assuring environmental compliance;
                                                 •   Enhancing and measuring environmental performance;
                                                 •   Using limited resources more effectively;
                                                 •   Creating partnerships among regulators and small
                                                    businesses; and
                                                 •   Building a sustainable system for regulatory oversight.

                                              ERP can also help small businesses by:
                                                 •   Aiding owners/operators'  understanding of all applicable
                                                    environmental regulations;
                                                 •   Improving facility compliance with the regulations; and
                                                 •   Educating owners/operators in pollution prevention and best
                                                    management practices.

                                             ERP Elements
                                                                  Self-certification
                                                                   . Sector standards


                                                                  2b. Applicability statements


                                                                  2c. Self-certification forms


                                                                  2d. Return to compliance plans
                            Traditional Tools
                            • Regulations
                             nspections
                                                                                                          Performance
                              Compliance
                              Assistance
                Measurement
                                                     3a. Environmental Business Practice Indicators

                                                     3b. Statistical analysis

                                                     3c. Use of outcomes to target actions

                                                     3d. Reporting Results
                                                                          1a. Compliance assistance workbooks

                                                                         1b. Compliance assistance workshops
 The District of Columbia and Maryland have used some of the ERP elements
 and tools, and additional states are exploring ERP.
NCEI

                                                                 NATIONAL  CENTER  FOR
                                                                 ENVIRONMENTAL  INNOVATION

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How  does  ERP work?
The Environmental Results Program (ERP) Process
     PRE-ERP
     BASELINE
   ASSESSMENT &
    COMPLIANCE
    ASSISTANCE
      TOOLS
                Statistical Methodology"
                       STATE
                     COMPLIANCE
                    ASSISTANCE TO
                      FACILITIES
                      -Workbooks
                      -Workshops
   COMPLIANCE
    ASSISTANCE
                              Environmental
                              Business
                              Practice
                              Indicators




4
STEP

2
FACILITY SELF-
CERTIFICATION

                 / FACILITY OPERATOR
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              ~^V      STATUS
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 FACILITYOUTOF
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                          CERTIFICATION AND
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STATE CONDUCTS TARGETED AND RANDOM INSPECTIONS TO
 DETERMINE CHANGES IN ENVIRONMENTAL PERFORMANCE
           AND COMPLIANCE STATUS
 STATE EVALUATES SECTOR AND FACILITY PERFORMANCE
USING RESULTS OF SELF-CERTIFICATIONS AND INSPECTIONS
   (BASELINE, RANDOM, AND TARGETED INSPECTIONS)
 PROCESS REPEATS
                      IF NECESSARY, STATE REVISES COMPLIANCE ASSISTANCE,
                       INSPECTION PROTOCOLS, AND LEVEL OF OVERSIGHT
How does ERP measure and track results?

  Regulators  evaluate facilities' compliance with environmental
  requirements (e.g. weekly leak detection by dry cleaners) through
  a comparison of information collected before and after they have
  completed ERP self-certification.  This information is  collected
  through self-certification questions  and  inspections,  allowing
  regulators to evaluate the environmental performance and
  compliance of individual facilities as well as whole business
  sectors.   Regulators  also include questions about facilities' use
  of pollution  prevention practices that go beyond compliance (e.g.,
  posting signs above sinks warning employees about the
  dangers of  pouring toxic chemicals down sinks).  Self-
  certification based on key compliance  and pollution prevention
  questions, validated by before and after inspections comprises
  an  ERP tool called Environmental Business Practice  Indicators
  (EBPIs).  EBPIs are used to:
    •   Calculate facility and sector compliance "scores" before
        and  after ERP compliance  assistance outreach and
        certification;
    •   Determine the statistical significance of changes in
        specific environmental indicators  for individual
        facilities or for groups of facilities, and
    •   Evaluate the accuracy of self-certification forms
        submitted by ERP facilities.
  The Massachusetts Department of Environmental Protection (MA
  DEP) was the first state to pioneer the ERP compliance assur-
  ance approach in 1997. MA DEP developed EBPIs as a way to
  measure  the percent increase or decrease in  performance of
  individual facilities and of whole business sectors. The ERP
  approach enabled MA DEP to assure and track compliance
  annually and to reveal tangible environmental results based on
  the average increase (or decrease) in EBPI performance.   EBPI
  performance for selected outcomes across certain small
  business  sectors statewide produced  the following results:
    •   A  38% increase  in performance for the  EBPI of meeting
        2ppm silver discharge for photoprocessors. MA DEP can
        now account for 98% of all silver generated for this
        sector.
    •   An 8% increase  in performance for the EBPI of being in
        compliance  with the press cleanup solution
        requirements for printers. When applied to the entire MA
        printer universe,  this is equivalent to a 4.0 ton reduction
        in  VOCs.
    •   A  33% increase  in performance for the  EBPI of performing
        proper leak detection weekly for dry cleaners.  MADEP
        estimates that this equates to more than 22 tons of
        perchloroethylene emissions reduced.
  These estimates are based on average facility EBPI performance
  applied across entire sectors as appropriate  across  the state.

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 EPA Resources
How do states start an ERP?
  ERP is a state-initiated and  state-managed program that the U.S.
  Environmental Protection Agency (EPA) supports through a range
  of technical and financial  resources.  State regulators interested
  in potentially planning  and implementing an ERP are invited to
  contact any of the ERP state contacts on the ERP State Activities
  chart or the EPA contact in this publication. Some
  recommendations for states considering an ERP include:

    •   Learn more about ERP from  states implementing the
        program and take advantage  of EPA's  ERP resources;
    •   Assess which business sector is both  a priority and is
        well-suited to an ERP approach in your state;
    •   Involve internal and external stakeholders throughout the
        ERP planning process (e.g., cross-agency staff, trade
        associations,  individual businesses, vocational/trade
        schools, etc.) even in the early stages;
    •   Ensure adequate  management commitment  and  funding
        to  undertake an ERP in the business sector considered
        for an ERP; and Identify agency information technology (IT)
        resources that can ensure  ERP  data management needs
        are met.

  The  ERP Roadmap is  a tool that many states  have found useful
  when developing an ERP. It can be found on the ERP website
  provided below.

EPA Assistance
 EPA  provides a range of technical and financial resources to
 support ERP projects.  This  assistance is available through
 several mechanisms:
           Publications
            These publications and other helpful resources are available on
            the ERP website:

               •   ERP User's Guide for Government Agencies
               •   A Generic Guide to Statistical Aspects of Developing an
                  Environmental Results Program
                  ERP Roadmap providing guidance on how to develop an ERP
               •   ERP fact sheets focusing on states'  progress in
                  implementing  ERP in specific sectors:
                  o   Underground  Storage Tanks
                  o   Automotive Repair Shops
                  o   Dry Cleaners
                  EPA National Model UST ERP Workbook in  paper and
                  electronic versions
               •   Guide to Data Management for the Environmental Results
                  Program.
           EPA Contact
            Scott Bowles
            US EPANational Center for Environmental Innovation
            Office of Policy, Economics and Innovation
            202-566-2208
            bowles.scott@epa.gov
            ERP Website
            http://www.epa.aov/permits/erp
       State Innovation Grant Program
       http://www.epa.gov/innovation/stategrants:
       OSWER Innovation Pilots Program
       http://www.epa.gov/oswer/iwg:
       Project planning through contractor assistance;
       Invitational travel support for state-to-state exchange of
       experience and technical knowledge;
       Technical document preparation
       (e.g., guidance, workbooks, fact sheets, contractor support);
       Coordination among EPA Headquarters and Regional
       Offices; and
       ERP website
       http://www.epa.gov/permits/erp.
     United States
     Environmental Protection
Office of Policy,
Economics and Innovation
    August 2005
EPA-100-F-05-026

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