SEPA
 Environmental  Results Program
 (ERP)
Business  Sector  Fact  Sheet:
Dry  Cleaners
    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.
  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.

To which sectors is ERP being applied?

  States have initiated or implemented ERP in the following sectors:
     •  Autobody/Repair               • Auto salvage  yards

     •  Dry cleaning                  •  Photoprocessing
     •  Printing                      .  Dental facilities/Mercury
     •  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.
                                                  Dry Cleaning Sector

                                                   The dry cleaning industry is subject to both federal and
                                                   state environmental regulations pertaining to air, water,
                                                   and solid and hazardous waste generation. This sector
                                                   mainly consists of a large number of small businesses,
                                                   which use a range of chemicals and cleaning methods,
                                                   including perchloroethylene (perc), petroleum
                                                   (hydrocarbons), carbon  dioxide, silicone-based cleaning,
                                                   and "wet" cleaning. Environmental and public health risks
                                                   can be introduced if some of these chemicals are
                                                   released (e.g., via process leaks or fugitive emissions),
                                                   depending on the amount of emissions as well as the
                                                   route and duration of human exposure to them.  Small dry
                                                   cleaning facilities are found as "free-standing" operations
                                                   as well as "co-residential" operations located within
                                                   urban apartment buildings. Many small business dry
                                                   cleaner owners and/or operators have limited resources
                                                   for understanding environmental and health risks as well
                                                   as federal and state regulations to control them.  Thus,
                                                   while a small free-standing dry cleaning shop may
                                                   present a relatively low environmental  and health risk on
                                                   its own, the risks presented by the  sector as a whole
                                                   can be significant due to the cumulative impacts of a
                                                   large number of small facilities.  Regulators recognize
                                                   these challenges, while they are also faced with limited
                                                   inspection and enforcement resources.

                                                   Through ERP (compliance assistance, self-certification,
                                                   and statistically-based performance measurement)
                                                   regulators can better target and leverage their limited
                                                   resources while also minimizing the overall environmental
                                                   and health impacts of the dry  cleaning sector.  The states
                                                   of Massachusetts and Michigan, with 660 and 940 dry
                                                   cleaners respectively, are at different  stages of
                                                   developing and implementing ERPs that assist small dry
                                                   cleaning facilities in understanding and complying with
                                                   environmental regulations.  A goal common to both
                                                   programs is to improve sector-wide compliance and
                                                   environmental performance through a  systematic and
                                                   information-driven approach to regulatory oversight. The
                                                   State of New Hampshire is also exploring the
                                                   development of an ERP  for dry cleaners.

                                                   Highlights of ERPs for small dry cleaners in
                                                   Massachusetts and Michigan  are provided in this fact
                                                   sheet.
          Massachusetts
                                Michigan

                                Minnesota

                                New Hampshire
                                Rhode Island
                              Wisconsin
  The District of Columbia and Maryland have used some of the ERP elements and
  tools, and additional states are exploring ERP.
                                                           NCI
                                                          NATIONAL  CENTER  FOR
                                                          ENVIRONMENTAL INNOVATION

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 Massachusetts Department of Environmental Protection
 Environmental Results Program - Dry Cleaning
Background

 In 1997 the Massachusetts Department of Environmental
 Protection (MADEP) realized their Ozone Attainment goals
 under National Ambient Air Quality Standards (NAAQS) were
 not being achieved.  MADEP estimated that numerous small
 pollution sources  (approximately 30,000) were creating a
 significant environmental  impact.  Faced with a shrinking
 budget and limited staff resources, MADEP's Bureau of Waste
 Prevention asked two key questions of its work: 1) How does
 MADEP most effectively and efficiently regulate large groups
 of facilities or activities with its limited resources; and 2) How
 does  MADEP know that its compliance  assurance efforts
 (permits, inspections, compliance assistance,  enforcement,
 etc.) yield environmental performance improvements?
 Building on successful multimedia- and pollution  prevention-
 based approaches,  MADEP developed the Environmental
 Results Program to address these questions.  The program
 was to function as a  performance-based approach to
 controlling pollution  in the regulated community (e.g., dry
 cleaners) through  less-prescriptive means than  traditional
 approaches.  Due to  the ERP program, MADEP  has
 established an accurate baseline "universe" of dry cleaning
 facilities and since 1997 can account for over 95% of all dry
 cleaning facilities  in the state (compared to  10% prior to
 implementing ERP).
 MADEP developed a range of materials and tools to drive and
 measure environmental performance through ERP.  They
 include sector-specific  compliance assistance  workbooks
 written in plain language, the self-certification process and
 workshops,  and  a statistical approach to  measure
 environmental performance.   The statistical approach to
 performance measurement is based on sixteen sector-
 specific indicators  of environmental  business practices, also
 known as Environmental  Business Practice  Indicators or
 EBPIs (e.g., facility has emergency procedures in place).  As
 measured by EBPIs,  MADEP has documented overall sector-
 wide improvements  in environmental performance. These
 materials and approaches have subsequently been shared
 with other states to use  or consider as models.
 After developing and implementing the core ERP elements of
 compliance assistance, self-certification, and performance
 measurement, MADEP  began annual  certification in three
 sectors: dry cleaners, photo processors, and printers.
Status and Program Updates

        In 1996  the  industry average baseline score for
        environmental performance in the dry cleaning sector
        (incorporating all sixteen EBPIs) was 84%, and by 2002
        it rose to  98%.
        Between  1996 and 2000, compliance improvements in
        weekly leak detection by dry cleaners were estimated
        to have reduced perc emissions by 22.5 tons.
        By 2004,  MADEP had completed their eighth annual
        certification of dry cleaners and photo processors
        and their seventh annual certification for printers.
        They  had also developed ERPs for additional
        industry sectors.
        In order to streamline paperwork processing (e.g.,
        registration, compliance certification, reporting),
        MADEP has taken deliberate steps to automate the
        ERP process and data collection.  In 2004,  the first
        year of electronic filing, MADEP received 60% of its
        certifications on-line.
 Upcoming Milestones

  MADEP is currently beta testing  improvements to  its
  automation system that will enhance: 1) management and
  analysis  of inspection data, 2) statistical analysis  of
  environmental performance data, 3) analysis of environmental
  outcomes, and 4) graphical presentation of environmental
  performance results.
 MADEP Contact:
 Steven DeGabriele, Director
 Business Compliance Division
 617-556-1120
 steven.degabriele@state.ma.us
 http://www.mass.gov/dep/erp
EPA Contact:
 Beth Termini
 EPA Region I
 617-918-1662
 termini.beth@epa.gov

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 Michigan Department of Environmental Quality
 Michigan Environmental Results Program for the Dry Cleaning Sector
Background

 In 2004 the Michigan Department of Environmental Quality
 (MDEQ) began developing a multimedia (e.g., air, water, and
 waste) regulatory inspection program for the small business
 dry cleaning sector, utilizing the ERP approach of compliance
 assistance,   self-certification,   and   performance
 measurement as an alternative to traditional state permitting
 programs.  The Michigan Environmental Results Program
 (MERP) could, for example, be proposed to replace  state
 permitting programs related to National Emission Standards
 for Hazardous Air  Pollutants (NESHAP) for  small (area
 source) dry cleaning facilities that use perchloroethylene or
 petroleum solvents.  To further promote compliance across
 the sector, MDEQ is also  planning to incorporate community
 involvement,  application of business incentives,  and
 electronic self-certification  and  reporting into its  ERP
 program.  Through MERP, MDEQ plans to leverage  internal
 and external resources, including partnership with  USEPA
 Region V, local trade associations, community organizations,
 businesses,  and  economic development agencies.
 MDEQ received a State Innovation Grant (SIG) from USEPA to
 develop and pilot its dry cleaning ERP as a voluntary program.
 MDEQ is  developing this program to aid owner/operator
 understanding of all applicable environmental regulations in
 the dry cleaning sector, to improve  facility compliance with
 these regulations, and to enhance sector-wide use of pollution
 prevention activities and best management practices. MDEQ
 also  hopes to  aid the  development and transfer of useful
 template ERP materials to other sectors and states as it builds
 on similar materials and experience  shared by MADEP.
Status and Program Updates

       An internal MDEQ stakeholder workgroup for
       MERP has been established.

       MDEQ has drafted a list of regulatory flexibility
       options, which it is exploring with USEPA.


Upcoming Milestones

  In 2005 MDEQ plans to develop compliance assistance tools
  transferable to other states, including a self-assessment
  checklist and workbook for facilities, multimedia inspector
  checklists,  industry self-certification forms, and other
  materials. To maximize efficiency in processing MERP data,
  reports, and  paperwork, a database system will also be built.
  In addition,  MDEQ will develop a series of performance
  measures and criteria.   In 2006  MDEQ plans to perform
  baseline inspections and introduce  MERP  compliance
  assistance tools to inspectors. All tools and materials will be
  provided to  dry cleaners through compliance assistance
  workshops around early 2007.  Facilities will then complete
  compliance self-certification forms as well as any return to
  compliance plans (to correct deviations) and submit them to
  MDEQ  for  review  and  analysis.   Post-certification
  inspections will follow.
 MDEQ Contact:
 Teresa L. Kinder, Senior Environmental Engineer
 Environmental Science and Services Division
 517-373-9283
 kindert@michigan.gov
 EPA Contact:
 Marilou Martin
 EPA Region V
 312-353-9660
 martin.marilou@epa.gov

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EPA Assistance

  EPA provides a range of technical and financial resources to
  support ERP projects.  This assistance is available through
  several mechanisms:

    •   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.

  A list of State ERP projects and contacts is available on
  the ERP website.

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:
  Hyatt Nolan
  National Center for Environmental Innovation
  Office of Policy, Economics and Innovation
  202-566-2236
  nolan.hyatt@epa.gov

  ERP Website:
  http://www.epa.gov/permits/erp

United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
(1807T)
    August 2005
EPA-100-F-05-029

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