xvEPA
      FACT SHEET

      WHAT POTENTIAL
      SMALL ENTITY
      REPRESENTATIVES SHOULD
      KNOW ABOUT
      THE SMALL BUSINESS
      ADVOCACY REVIEW PANEL
      PROCESS

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What is an EPA
Small Entity
Representative?
Why does EPA
need Small  Entity
Representatives?
Who is eligible to
be a Small  Entity
Representative?
The Small Business Advocacy Review (SBAR) Panel will ask a
selected group of Small Entity Representatives (SERs) to provide
comments on behalf of their company, community, or organization
to advise the Panel regarding a particular proposed rule.  SERs'
participation in the rulemaking process will ensure that  EPA hears
small entity concerns.

A SER is a person appointed by the Small Business Advocacy
Chair (SBAC) as a participating representative of small entities
likely to be subject to the requirements of a specific proposed rule
under development. The Regulatory Flexibility Act (RFA) defines
small entities as small businesses, small governments, and small
non-profit organizations.

EPA has an ongoing commitment to minimize the burden of its
regulations on small entities to the extent feasible, while still
meeting its statutory requirements. The Small Business Regulatory
Enforcement Fairness Act (SBREFA), enacted in March 1996,
amended the RFA to provide small entities with an expanded
opportunity to participate in the development of certain  regulations.

In particular, EPA must convene a SBAR Panel for certain
proposed rules under development, unless the Agency determines
the rule will not impose a significant economic impact on a
substantial number of small entities.  Each Panel is led by the
SBAC and includes federal representatives from the Small
Business Administration (SBA), the Office of Management and
Budget (OMB), and EPA.  The Panel meets with SERs likely to be
subject to the rule to hear their views on the potential impacts of the
rule and  on ways to reduce them.

A small entity stakeholder is eligible to be a SER if he or she is
directly subject to the particular proposed regulation that is under
development and meets one of the following definitions of small
entity listed below. Please note, however, EPA has the authority to
use an alternative definition after notice and comment,  and for
small businesses, consulting with SBA.

    Small Business:  Defined under Section 3 of the Small
    Business Act. SBA defines "small business" variably, based
    on each firm's category in the North American  Industry
    Classification System.

    Small Organization:  Any not-for-profit enterprise which is
    independently owned  and operated and is not  dominant in its
    field.

    Small Governmental Jurisdiction:  Governments of cities,
    counties, towns, townships, villages, school districts, or special
    districts, with population of less than 50,000.

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Who chooses
Small  Entity
Representatives?
At what stage in
the rulemaking
does the Panel
process occur?

What will  being a
Small Entity
Representative
entail?
What will be
done with my
small entity
input?
Typically, EPA prefers the actual owners or operators of small
businesses, community officials, and non-profit organizations for
this purpose.  However, a person from a trade association that
exclusively or primarily represents potentially regulated small
entities, may also serve as a SER.

For each rule that may have a significant economic impact on a
substantial number of small entities, EPA identifies what types of
small entities are likely to be subject to the rule and works in
partnership with other Agency offices in developing a list of
potential SERs. EPA also consults with the SBA Chief Counsel for
Advocacy to identify individuals to serve as SERs. The SBAC
considers these recommendations and appoints a group of official
SERs.

Prior to proposing a rule, EPA engages its small entity stakeholders
in a dialog to learn more about their concerns and ideas regarding
the rule under development. If the Agency believes that the rule
may have a significant economic impact on a substantial number of
small entities, EPA will begin the SBAR Panel process. This
process is intended to provide a special opportunity for small
entities to participate in the rulemaking.

Generally, SERs will be asked to review background  information,
listen to informational briefings and provide oral and written
comments to the Agency and later to the Panel.

Typically, prior to convening a Panel, EPA will provide the SERs
with some background information on the rule and ask for their
initial feedback. The Agency may also arrange a meeting with
small entities potentially subject to a particular rule to hear their
initial concerns and suggestions. Representatives of OMB and
SBA are also invited to this meeting.

After the SBAR Panel is  convened, the Panel will provide the SERs
with some additional information, followed by a teleconference or a
face-to-face meeting to give them the opportunity to communicate
directly with the Panel members. The Panel also generally
requests SERs' comments in writing. The goal of this consultation
is to provide a forum for the SERs to raise issues of concern and to
provide the Panel with insight into technical issues and potential
ways of approaching them.

Each SBAR Panel has 60 days to consider SER comments in
addition to other rule-related materials prepared by EPA and
prepare a report to the Administrator of EPA on the potential small
entity impacts of the rule and on possible ways to reduce those
impacts. The Panel report is considered by the Agency as it makes
decisions on the proposed rule and is made part of the official
rulemaking record with all written small entity comments appended.
SERs may also submit comments during the standard public
comment period after the publication of the proposed rule in the
Federal Register.

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          pan  I flPt      Several EPA documents are available that can provide more
          Urti I  I yci      information on the RFA/SBREFA, the Agency's small entity
|TIOr0                      compliance assistance efforts and the elements of a regulatory
                             flexibility analysis. These documents and further assistance with
                             any RFA/SBREFA questions are available from the SBAC, SBAC
                             staff, or from the RFA/SBREFA website, listed below.

                             Small Business Advocacy Chair
                                 Tom Kelly
                                 (202) 564-4000

                             Small Business Advocacy Chair Staff
                                 Stuart Miles-McLean (Team Leader)
                                       (202) 564-6581, miles-mclean.stuart@epa.gov
                                 Jennifer Vernon
                                       (202) 564-6573, vernon.jennifer@epa.gov
                                 Patrick Easter
                                       (202) 564-6566, easter.patrick@epa.gov
                                 Patricia Grim
                                       (202) 564-6583, grim.patricia@epa.gov

                             RFA/SBREFA Website
                                 www.epa.gov/sbrefa
 United States                   Office of Policy, Economics and Innovation           EPA 233-F-01-002
 Environmental Protection          (1806A)                                     August 2001
 Agency

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