U.S. ENVIRONMENTAL PROTECTION AGENCY
ENVIRONMENTAL AND FINANCIAL PROGRESS
-------
CONTENTS
EPA Budget, Performance and Financial Snapshot, Fiscal Year 2008 i
Message From the Administrator 1
Message From the Chief Financial Officer 2
Introduction 3
About EPA 4
FY2008 Program Performance 9
Goal 1: Clean Air and Global Climate Change 10
Goal 2: Clean and Safe Water 12
Goal 3: Land Preservation and Restoration 14
Goal 4: Healthy Communities and Ecosystems 16
Goal 5: Compliance and Environmental Stewardship 18
Financial Performance 20
Improving Management and Results 21
EPA Holds Itself Accountable 22
-------
I JQLT| Environmental Protection Agency
Budget^ Performance and Financial Snapshot^ Fiscal Year 2008
Who We Are
Mission: The mission of the Environmental Protection Agency is to protect human health and the environment. Since 1970, EPA has been
working for a cleaner, healthier environment for the American people. View the Agency's Strategic Plan at: www.epa.gov/ocfo/plan/plan.htm.
Organization: The Agency's mission is carried out by 14 headquarters offices in Washington, D.C., 10 regional offices, and more than a
dozen labs. For more information visit: www.epa.gov/epahome/organization.htm.
Personnel: EPA employs approximately 17,000 people across the country. Staff are highly educated and technically trained; more than half
are engineers, scientists, and policy analysts. In addition, a large number of employees are legal, public affairs, financial, information man-
agement and computer specialists. For more information, visit: www.epa.gov/careers.
Budgetary Resources: The budgetary resources for FY 2008 totaled $7.472 billion or $25 per person.
Budget Snapshot
Total Spending FY 2005-FY 2009
Top 5 Programs By Budget
11111 Illlllll..
— —'— —'— —'— —'— — Year Infrastructure Infrastructure Superfund: Facilities Infra- Categorical
2005 2006 2007 2008 2009 Assistance: Assistance: Remedial structure and Grant: Pollution
^^^^— ^^_ Drinking Water Clean Water Operations Control (Section
Mandatory* SRF SRF 106)
Discretionary $7,913 $8,321 $8,259 $7,930 $7,999 2008 $829 $689.1 $593.7 $472.1 $218.2
TOTAL 2009 $842.1 $555 $586.1 $490.6 $221.7
$ in Millions
$ in Millions
Performance Snapshot
Accomplishments: In 2008, the Agency set stringent new standards for a significant number of air pollutants or pollution sources; proposed a
new regulation to allow for the underground storage of greenhouse gases in a manner that protects ground water sources of drinking water; en-
sured that 96 percent of hazardous waste facilities are permitted and 66 percent of the nation's underground storage tanks are in compliance;
completed a thorough reassessment of all food pesticides, setting the most health protective standards in the world for pesticides and food
safety; and took enforcement actions to secure commitment from polluters to spend an estimated $11.8 billion on pollution control activities.
Challenges: EPA faced several challenges in 2008 including improving data collection for performance measures, improving efficiency of op-
erations, ensuring consistent application of standards, meeting Homeland Security requirements, and working with partners to address infra-
structure concerns. For example, approximately 160,000 public drinking water systems provide the nation with drinking water, and 16,000
facilities treat and dispose of wastewater. Many of the country's water infrastructure systems are aging and need repairs or upgrades to meet
various requirements of the Clean Water Act and Safe Drinking Water Act. EPA and its federal, state, and local partners face a significant
challenge in developing a national strategy for addressing this issue and resolving the problem of aging and deteriorating water infrastructure
to protect public health and the environment.
Financial Snapshot
Clean Opinion on Financial Statements
Timely Financial Reporting
Improper Payment Rate
Total Liabilities
Yes
0.39%
$1,664
Material Weaknesses
Total Assets
Net Cost of Operations
Yes
0
$17,107
$8,041
*Footnote: Note: EPA does not have any mandatory spending. All $ amounts used for the budget per strategic goal were taken from EPA's FY 2009 Congressional Justification of the Presi-
dent's Budget. Additional information on federal spending can be found at: www.usaspending.gov/index.php. Additional information on the performance of federal programs can be found at:
www.whitehouse.gov/omb/expectmore.
-------
Summary of Environmental Protection Agency Ratings for Fiscal Year2008
FY 2008 Performance Results per Strategic Goal
Met/Exceeded
Not met but improved over prior years
• Not met target
• Data not yet available
Budget per Strategic Goal
($ in millions)
Strategic Goal 1: Clean Air and Global Climate Change
Protect and improve the air so it is healthy to breathe, and risks to human health
and the environment are reduced. Reduce greenhouse gas intensity by enhancing
partnerships with businesses and other sectors.
2008 Actual = $972
Performance Measure(s)*
Tons of particulate matter 2.5 (PM25) reduced since 2000 from
mobile sources
2006 Results
73,460
2007 Results
85,704
2008 Target
97,947
2008 Results
Data available
2009
2009 Target
110,890
Strategic Goal 2: Clean and Safe Water
Ensure drinking water is safe. Restore and maintain oceans, watersheds, and their
aquatic ecosystems to protect human health; support economic and recreational
activities; and provide healthy habitat for fish, plants, and wildlife.
e
2008 Actual = $2,855
Performance Measure(s)*
Percent of population served by community water systems that
will receive drinking water that meets all applicable health-based
drinking water standards through approaches including effective
treatment and source water protection.
2006 Results
89.4
2007 Results
92
2008 Target
90
2008 Results
92
2009 Target
90
Strategic Goal 3: Land Preservation and Restoration
Preserve and restore the land by using innovative waste management practices
and cleaning up contaminated properties to reduce risk posed by releases of
harmful substances.
2008 Actual = $1,689
Performance Measure(s)*
Number of Superfund sites ready for anticipated use site-wide.
2006 Results
N/A
2007 Results
64
2008 Target
30
2008 Results
85
2009 Target
30
Strategic Goal 4: Healthy Communities and Ecosystems
Protect, sustain, or restore the health of people, communities, and ecosystems using
integrated and comprehensive approaches and partnerships.
2008 Actual = $1,227
Performance Measure(s)*
Percent of new chemicals or organisms introduced into commerce
that do not pose unreasonable risks to workers, consumers, or the
environment.
Cubic yards of contaminated sediment remediated (cumulative, in
millions) in the Great Lakes.
2006 Results
100
4.1
2007 Results
96
4.5
2008 Target
100
5.5
2008 Results
Data available
2009
5.5
2009 Target
100
5.5
Strategic Goal 5: Compliance and Environmental Stewardship
Protect human health and the environment through ensuring compliance with environ-
mental requirements by enforcing environmental statutes, preventing pollution, and
promoting environmental stewardship. Encourage innovation and provide incentives
for government, business, and the public that promote environmental stewardship and
long term sustainable outcomes.
2008 Actual = $735
Performance Measure(s)*
Pounds of pollution estimated to be reduced, treated, or eliminated
as a result of concluded enforcement actions (in millions of pounds).
2006 Results
890
2007 Results
890
2008 Target
890
2008 Results
3900
2009 Target
890
* This measure was selected from a number of performance measures aimed at the specific strategic goal.
-------
From the
Administrator
I am pleased to present the U.S. Environmental Protection Agency's Fiscal Year2008 "Citizens'Report," a com-
panion to our FY2008 Performance and Accountability Report. Designed for the general public, the Citizens' Report
presents highlights of the detailed performance and financial results contained in our FY2008 Performance and
Accountability Report. The Report also describes the considerable progress that EPA has made toward protecting hu-
man health and the environment as well as outlines some of the challenges we face.
For example, EPA set stringent new standards, including new standards for ozone, which we expect will help
improve air quality. The Agency completed reassessment of all food-use pesticides this year, which will help ensure
America's food supply is safe. We restored more than 2,000 impaired water bodies and made 85 Superfund sites
ready for reuse. EPA also added thousands of acres to the nation's wetlands and provided wastewater sanitation to
thousands of homes along the United States-Mexico border. Finally, in FY 2008, EPA achieved record results from
our enforcement actions, reducing an estimated 3.9 billion pounds of pollution.
EPA is proud of the results we and our partners achieved in FY 2008 to improve the quality of our air and water
and to protect our land. We will continue to meet our responsibilities for enforcing the nation's environmental
laws and regulations and to work in collaboration with our partners to address the environmental challenges that
lie ahead.
One of my stated priorities as Administrator has been to leave behind a stronger EPA. To this end, I have support-
ed efforts to improve the EPA's performance measures, strengthen the Agency's scientific knowledge and capabili-
ties and bolster the well-trained and talented workforce. Our FY2008 Performance and Accountability Report reveals
these accomplishments and more. It has been my privilege to guide the Agency in achieving these results.
Stephen L.Johnson
Administrator
O
H
N
m
z
Ifl
Jl
in
O
IV)
o
o
-------
Chief Financial Officer
or:
0
Q.
u
IT
o:
O
LL
or:
LU
D_
CO
O
O
(M
I am proud to provide EPA's FY2008 Citizens'Report, which summarizes some of the Agency's notable accom-
plishments, as well as the challenges we face, in protecting human health and the environment. The results we
achieved during FY 2008 reflect our commitment to financial excellence and to using our resources effectively
and efficiently to fulfill our mission.
In FY 2008, for an unprecedented second year in a row, EPA received the federal government's highest honor for
strong and effective management—the President's Quality Award for Management Excellence. This award recog-
nizes EPA's continued efforts to develop a data-driven, results-oriented culture.
EPA also continues to rank among the highest performing federal agencies under the President's Management
Agenda scorecard. In FY 2008 for the second straight year, EPA achieved successful "green" progress and status
ratings throughout the year for the five government-wide initiatives, Human Capital, Commercial Services Man-
agement, Expanded E-Government, Improved Financial Performance, and Performance Improvement, and for a
sixth program initiative, Eliminating Improper Payments. In addition, the Agency again received an unqualified
"clean" opinion on our financial statements, demonstrating EPA's sound and responsible financial management
practices and accountability to American taxpayers.
I would like to extend my sincere gratitude and appreciation to EPA's dedicated staff across the country who work
daily to protect human health and the environment and without whom our progress in FY 2008 would not have
been possible.
Lyons Gray
Chief Financial Officer
ce.
O
a.
LU
o:
0)
z
LU
N
O
-------
Introduction
Since EPA was formed in 1970,
the United States has made
enormous environmental
progress. America's air, water, and
land are cleaner today than they
were only a decade ago, and increas-
ingly, Americans are shifting to a
"green" way of thinking.
As America's environmental steward,
EPA has made great strides in leading
the nation's environmental science,
research, education, and assessment
efforts. The Agency has strengthened
regulations to protect air, water, and
food, and, through its compliance ef-
forts, prevented or reduced millions
of pounds of pollution released into
the environment. With state, tribal,
and local government partners, EPA
is working to protect ecosystems
and develop new opportunities and
innovative partnerships to accelerate
environmental protection.
Despite this progress, however,
EPA continues to face serious
challenges in improving and
sustaining the environment. The
nation's freshwater resources
provide safe drinking water for
millions of Americans, and EPA
must continue to safeguard these
resources. Increased energy con-
sumption and costs underscore the
need to promote the use of alter-
native energy sources and invest-
ment in new technologies. Global
climate change requires that the
Agency create partnerships around
the world and across many sec-
tors to help foster production and
consumption choices that slow
the rate of global climate change
impacts while still growing the
economy. These and other chal-
lenges inspire the Agency, driv-
ing its work and commitment to
achieve excellent performance and
strong results.
EPA's Long-Term
Strategic Goals
1. Clean Air and Global
Climate Change
2. Clean and Safe Water
3. Land Preservation and
Restoration
4. Healthy Communities
and Ecosystems
5. Compliance and
Environmental
Stewardship
o
H
N
m
z
Ifl
O
71
-
Jl
in
O
IV)
o
o
-------
About EPA
or:
0
Q.
u
IT
LU
D_
CO
O
O
CM
OL
O
Q.
LU
Of.
VI
z
LU
N
O
What We Do
EPA strives to achieve a cleaner,
healthier environment for the
American people. To accomplish its
mission, the Agency:
•"•• Develops regulations to imple-
ment environmental laws
enacted by Congress.
Who We Are
EPA's staff of more than 17,000
employees is highly educated and
technically trained. More than
half are engineers, scientists, or
policy analysts; others are legal,
public affairs, financial, informa-
tion management, and computer
specialists. EPA is headquartered
in Washington, D.C. The Agency
also has 10 regional offices and
more than a dozen laboratories
and field offices across the coun-
try. For more information, visit
EPA at www.epa.gov.
How We Work
Collaboration With Partners and Stakeholders
Enforces environmental laws,
regulations, and standards by
taking legal actions.
•-•• Provides grants to states,
nonprofit organizations, and
educational institutions.
Operates laboratories through-
out the nation.
Supports pollution prevention
and energy conservation.
Promotes environmental
education for all Americans.
EPA partners with other fed-
eral agencies, states, tribes, local
governments, and other coun-
tries to address today's complex
environmental issues. EPA and
states share responsibility for
protecting human health and the
environment, and the Agency can
authorize states to carry out the
day-to-day work of implementing
most national environmental
programs. EPA works with tribes
in a government-to-government
relationship to improve com-
pliance with environmental
-------
regulations in Indian Country.
The Agency also works with
business and industry, non-profit
organizations, environmental
groups, and educational institu-
tions in a wide variety of collab-
orative efforts. EPA understands
that government alone cannot
begin to address all of the na-
tion's environmental challenges.
O
H
Performance Management
EPA's five goals, their 20 support-
ing objectives, and numerous
strategic targets are described
fully in the Agency's 2006-2011
Strategic Plan (www.epa.gov/ocfo/
plan/2006/entire_report.pdf).
Based on its Strategic Plan, each
year EPA commits in its Annual
Performance Plan and Budget to
annual performance measures,
which support the achievement
of longer-term strategic objec-
tives. EPA is accountable for
using its resources efficiently and
effectively in managing programs
and achieving results. In an
annual Performance and Account-
ability Report (www.epa.gov/ocfo/
par/2008par/index.htm), the
Agency reports on its perfor-
mance results against its annual
performance measures and de-
scribes its progress in the context
of longer-term measures.
EPA's Performance Management Framework
Planning, Budgeting, and Accountability for Results
IV)
o
o
0)
Additional
Assessment Tools
RatingTool (PAR,,
• Program Evaluation
• Audits and Reviews
• Mid- Year Report
Annual Plan & Budget
Identifies priorities and resources
for the year, including the Agency's
annual performance measures
Annual National
Program Plans
Set priorities, strategies,
Strategic Plan
Establishes EPA's overall plan for the
next five years, including goals, objectives,
sub-objectives, and strategic measures
Report on the
Environment
measured against key
human health and
Annual Performance
& Accountability
Performance and Accountability Report
Presents EPA's performance results measured
against its annual measures and commitments.
Demonstrates accountability and serves as a
feedback loop to inform adjustments to
priorities, strategies, and measures
(www.epa.gov/ocfo/par/2008par/index.htm)
EPAStat Quarterly Report
Provides timely performance data for a number
of the Agency's important work areas
C
CO
m
z
-------
Highlights of Environmenta
CO
D
CO
o
o
(M
Region 10
Implements Federal Green Challenge
On Earth Day 2008, Region 10 launched the Federal
Green Challenge. All Regional federal partners are chal-
lenged to reduce greenhouse gas emissions by 5 percent
over the next year by managing energy, transportation,
waste, and water. Region 10 registered nearly 20 partners
representing more than 1,000 facilities across Washington,
Oregon, Alaska, and Idaho.
www.federalgreenchallenge.net
Region 9
Eliminates Pollution Along California/Arizona
BorderWith Mexico
Region 9 inspected more than 50 percent of the federally
regulated entities responsible for major sources of pollu-
tion to the air, land, or water along the California and
Arizona border with Mexico and took actions against
the worst polluters. The enforcement will result in more
than $887 million investments in environmental and
operational improvements and other efforts to protect
community health and the environment.
www.epa.gov/region09/enforcement/accomplishments.html
Region 7
Assists in Iowa Flood Disaster
The U.S. government declared the 2008 Iowa floods the
single largest disaster in history in the four-state regions of
Iowa, Nebraska, Kansas, and Missouri. Region 7 worked
in 160 counties in Iowa and Missouri to collect 200,000
pieces of household hazardous waste, orphaned drum con-
tainers, and electronic goods from more than 1,000 miles of
river and thousands of flood-damaged residences.
www.epa.gov/region07/cleanup/ iowa_flooding2008/index.htm
Region 8
Clark Fork and Blackfoot Rivers Now Flowing Freely
In March 2008, the Milltown Dam in western Montana was
breached, and for the first time in a century, the Clark Fork
and Blackfoot Rivers began to flow freely. An agreement with
the Atlantic Richfield Company for more than $100 million
will result in the removal of approximately 2.5 million cubic
yards of contaminated sediments, representing 90 percent of
the pollution, which were deposited behind the dam polluting
the river.
www.epa.gov/region8/superfund/mt/milltown/
Region 6
Proposes First 8-hour Ozone Attainment Plan
In July 2008, Region 6 made a proposed approval for an
8-hour ozone attainment plan for the Dallas-Fort Worth
area, the first in the nation. The plan reduces 88 tons of
ozone-forming nitrogen oxides every day. As a result of
these efforts, air quality in the area has improved, and the
ozone levels in 2008 are the lowest since 1973, when verifi-
able ambient ozone monitoring began.
www.epa.gov/region 6/6xa/dfw_cap_documents.htm
-------
Accomplishment, EPA
ons
o
H
Region 5 and the Great Lakes National Program
Office Collect Vast Quantities of e-Wastes and
Pharmaceuticals
During the April 2008 Earth Week Campaign, more than
5 million unwanted pills and more than 5 million pounds
of electronic waste were collected at 33 recycling events,
far exceeding the goal of 1 million unwanted pills and 1
million pounds of electronic waste. Region 5, in conjunc-
tion with 188 partner organizations including cities,
counties, townships, tribes, environmental groups, busi-
nesses, community organizations, faith-based organiza-
tions, and media outlets, supported this event.
www.epa.gov/glnpo/earthday2008/
Region 4
Increases Greenspace at Five Mile Creek
The Freshwater Land Trust created a 28-mile network of
trails and green space in the greater Birmingham area,
located along Five Mile Creek, with a $200,000 brown-
fields grant. Community participation, outreach, and
education efforts contributed to the success of the initia-
tive, including ongoing creek cleanups, trail improve-
ments, and water quality monitoring projects.
www.freshwaterlandtrust.org
Region I
Increases "No Discharge" Area Designations
In 2008, EPA approved "No Discharge" designations for
significant stretches of the New England coastline, includ-
ing Boston Harbor and Cape Cod Bay. Region 1 and its
state and local partners have improved water quality and
protected public health and marine life by halting sewage
discharges from boats across more than 2,200 miles of the
New England coast.
www.epa.gov/regionl/topics/water/nodischarge.html
Region 2 Reaches Agreement to Remove
Contaminated Sediment
EPA signed an agreement with Occidental Chemical and
Tierra Solutions that will result in the most significant
removal of contaminated sediment from the lower New
Jersey Passaic River in its history. A total of 200,000
cubic yards of dioxin-laden material will be removed in
two phases.
www.epa.gov/region02/passaicriver/
Region 3
Embraces "Recycle Mania"
Region 3 led the nation during Recycle Mania 2008 by
registering 75 colleges for the competition. The top school
in each state will receive an excellence award for achieving
the rank of Number 1 in the "Per Capita Classic" category.
www.epa.gov/reg3wcmd/solidwastemania.htm
IV)
O
O
0)
C
CO
m
z
-------
U.S. Environmental Protection Agency
The mission of the Environmental Protection Agency is to protect human health and the environment
Administrator
Deputy Administrator
Provides overall supervision of the Agency
and is responsible directly to the President
CO
D
CO
o
o
(M
Assistant Administrator
for Administration and
Resource Management
Manages EPA's human, financial,
and physical resources.
General Counsel
Provides legal service to c
Assistant Administrator
for Prevention. Pesticides.
and Toxic Substances
Regulates pesticides and chemicals to
protect public health and the
environment and promotes innovative
programs to prevent pollution.
Region I
Boston, MA
r
Region 5
Chicago, IL
Assistant Administrator
for Air and Radiation
T
Assistant Administrator
for Research and
Development
Meets programs research and
development needs and conducts
Region 2
New York, NY
Region 6
Dallas, TX
Assistant Administrator
for Enforcement and
Compliance Assurance
Delivers compliance with U.S.
environmental laws and promotes
Assistant Administrator
for Solid Waste and
Emergency Response
Provides policy, guidance, and direction
Region 3
Philadelphia, PA
Region 7
Kansas City, KS
Chief Financial Officer
Manages and coordinates EPA's
processes and provides fin
Assistant Administrator
for Environmental
Information
Region 4
Atlanta, GA
Region 8
Denver, CO
Region 9
San Francisco, CA
Region 10
Seattle, WA
-------
In FY 2008, EPA met 113 of its
219 performance measures, 76
percent of the 149 performance
measures for which data were avail-
able. The Agency did not meet 36
performance measures, for a variety
of reasons.
* Factors that are out of EPA's
control, such as weather or liti-
gation, often influence results.
For example, heavy population
growth and land use patterns
continually contribute to the
Chesapeake Bay Program not
meeting its goals to reduce nitro-
gen, phosphorous, and sediment
pollution loads in the Bay.
Competing priorities and
diverted resources sometimes
affect EPA's timelines.
* Many of EPA's performance
results depend on collabora-
tion between the Agency and
its federal, state, and local
government partners. For
example, when expected water
quality submissions were
delayed in states waiting for
attorney general certifications,
the Agency narrowly missed
its target for states and terri-
tories submitting this infor-
mation.
EPA is not yet able to report on 70
of its 219 performance measures,
because final end-of-year data are
not available. This delay in report-
ing can be largely attributed to the
complex nature of environmental
problems and the Agency's sharp-
ened focus on longer-term environ-
mental and human health outcomes
rather than more specific, annual
output measures. Furthermore, data
for many outcome-oriented perfor-
mance measures require extensive
quality assurance. Since EPA's
Performance and Accountability Report
is published only 45 days after the
end of the fiscal year, much of the
performance results data will not be
available until FY 2009 or later.
o
H
N
m
z
in
Jl
in
O
IV)
o
o
-------
: Clean Air and Global
Climate Change
Protect and improve the air so it is healthy to breathe,
and risks to human health and the environment are reduced.
Reduce greenhouse gas intensity by enhancing
partnerships with businesses and other sectors.
or:
0
Q.
U
OL
o:
O
LL
£
LU
D_
CO
O
O
CM
Q:
O
Q.
LU
Of.
(fi
z
LU
N
O
10
Key Achievements
• Most Stringent Ozone Standard.
In March 2008, EPA issued the
most stringent 8-hour standard
ever established for ozone, the
primary component of smog.
The Agency revised the ozone
standards for the first time in
over a decade, basing changes
on the most recent scientific
evidence about the effects of
ozone on human health. EPA
valued the health benefits from
this rule between $2 billion and
$19 billion by preventing 260
to 2,000 premature deaths, 380
cases of chronic bronchitis, and
many other adverse health ef-
fects. The cost estimates of this
rule range from $7.6 billion to
$8.5 billion.
• Better Air Quality in Schools.
In FY 2008, EPA sponsored the
Eighth Annual Indoor Air Quality
Tools for Schools National Sym-
posium with more than 500 at-
tendees from across the country
to accelerate the adoption of key
drivers of effective and sustain-
able indoor air quality man-
agement programs in schools.
EPA also recognized 43 school
districts and several individuals
for making outstanding prog-
ress in creating healthy learning
environments for children.
"This year, EPA established stringent new air quality
standards for lead, strengthened air quality standards
for ground-level ozone, and issued new emission
standards that will cut pollution from locomotive and
marine diesel engines by up to 90 percent."
—Robert J. Meyers, Principal Deputy Assistant Administrator for Air and Radiation
• Expanded Radiation Data. Dur-
ing FY 2008, the Agency more
than tripled the number of
locations included in RadMap,
a Geographic Information
Systems-based, interactive
desktop tool that can quickly
provide emergency responders
and health officials with key
information on radiation mon-
itoring system locations across
the country. This tool has been
well received in the EPA emer-
gency response community,
and the Agency is evaluating
options to broaden responder
access to the tool.
• New Climate Leaders. In 2008,
EPA recognized 51 new compa-
nies as Climate Leaders, bring-
ing membership in the Climate
Leaders Program to more than
200 partners working to mea-
sure greenhouse gas emissions
and set aggressive long-term
reduction goals. Notably, eight
companies took the next step
in the partnership by announc-
ing new goals for reducing
greenhouse gases. Collectively,
EPA's Climate Leaders rep-
resent more than 10 percent
of the U.S. gross domestic
product and have pledged to
prevent estimated greenhouse
gas emissions equivalent to 9
million cars annually.
Research to Inform National
Ambient Air Quality Standards.
In FY 2008, EPA researchers
characterized the respiratory
and cardiovascular effects of
air particles of different sizes,
showing that breathing in
these particles affects blood
clotting, can cause changes in
heart rate, and can result in
mild lung infections. In addi-
tion, EPA's Office of Research
and Development provided
research, data, and advice,
which were critical in National
Ambient Air Quality Stan-
dards reviews and decisions on
ozone, nitrogen oxides, sulfur
oxides, and lead.
-------
GOAL 1 AT A GLANCE
FY 2008
Performance
Measures
Met = 2
Not Met = 0
Data Available
After 11/17/08 = 28
(Total Measures = 30)
How Funds Were Used: Net Program Costs
(Dollars inThousands)
Healthy Communiti
and Ecosystems
Goal 1 FY 2008 Performance and Resources
Strategic Objective
Objective 1—Healthier Outdoor Air: Protect human health and the environment by attain-
ing and maintaining health-based air-quality standards and reducing the risk from toxic
air pollutants.
Objective 2—Healthier Indoor Air: Healthier indoor air in homes, schools, and office buildings.
Objective 3—Protect the Ozone Layer: Through worldwide action, ozone concentrations in
the stratosphere will have stopped declining and slowly begun the process of recovery,
and the risk to human health from overexposure to ultraviolet (UV) radiation, particularly
among susceptible subpopulations, such as children, will be reduced.
Objective 4—Radiation: Working with partners, minimize unnecessary releases of radia-
tion and be prepared to minimize impacts to human health and the environment should
unwanted releases occur.
Objective 5—Reduce Greenhouse Gas Intensity: Through EPA's voluntary climate protec-
tion programs, contribute 45 million metric tons of carbon equivalent (MMTCE) annu-
ally to the President's 18 percent greenhouse gas intensity improvement goal by 2012.
Objective 6 - Enhance Science and Research: Provide and apply sound science to support
EPA's goal of clean air by conducting leading-edge research and developing a better
understanding and characterization of environmental outcomes under Goal 1.
Goal 1 Total
FY 2008
Obligations
(in thousands)
$685,364.3
$51,632.2
$18,413.6
$47,698.3
$152,864.9
$101,830.0
$1,057,803.3
%of
Goal 1
Funds
65%
5%
2%
5%
14%
10%
100%
Due to rounding, some numbers might add up to slightly less or more than WO°/<
Challenges
Addressing climate change
continues to be one of EPA's
biggest challenges. In FY
2008, the Agency published
an Advanced Notice of
Proposed Rulemaking to
solicit public input on the
complexity and magnitude
of the question of whether
and how greenhouse gases
could be effectively con-
trolled under the Clean Air
Act. This action was in re-
sponse to the April 2, 2007,
Supreme Court decision in
Massachusetts v. EPA, which
found that greenhouse gas
emissions could be regulated
if EPA determines they cause
or contribute to air pollu-
tion that may reasonably
be anticipated to endanger
public health or welfare.
In July 2008, the Agency's
Clean Air Interstate Rule
was challenged in court and
vacated. EPA had estimated
that by 2015 the rule would
reduce power plant emissions
of sulfur dioxide by 73 per-
cent and nitrogen oxides by
61 percent in 28 eastern states
and the District of Colum-
bia, preventing thousands of
premature deaths and other
damaging health and envi-
ronmental effects each year.
The Agency filed a rehearing
petition for this important
regulation in September.
o
H
IV)
O
O
0)
o
3
H
C
CO
m
z
1 1
-------
Goal 2: Clean and
Safe Water
Ensure drinking water is safe. Restore and maintain oceans, watersheds,
and their aquatic ecosystems to protect human health; support economic and
recreational activities; and provide healthy habitat for fish, plants, and wildlife.
or:
0
Q.
U
OL
a
O
LL
o;
LU
D_
CO
O
O
CM
ce.
O
Q.
LU
Of.
VI
z
LU
N
o
12
&y Achievements
• Protected Drinking Water. In
FY 2008, 92 percent of the
population served by com-
munity water systems received
drinking water that met all ap-
plicable health-based drinking
water standards. These results
exceeded the Agency's annual
goal of 90 percent—a particu-
larly noteworthy accomplish-
ment as community water
systems face challenges daily
in applying existing drinking
water regulations and imple-
menting standards for new
contaminants.
Restored Impaired Waters.
EPA continues to make strong
progress in addressing im-
paired waters. By the end of
FY 2008, a total of 2,165 water
bodies that were listed as im-
paired in 2002 were restored
to fully attain the Agency's
water quality standards, ex-
ceeding EPA's annual target of
1,550. By attaining water qual-
ity standards, waters become
safer for drinking, fishing and
swimming.
"EPA has made significant progress in protecting
the nation's water resources—in FY 2008, 2,165
waterbodies that were listed as impaired in 2002
are now fully attaining water quality standards."
—Benjamin Grumbles, Assistant Administrator for Office of Water
Research on Disinfection
Byproducts. In FY 2008, the
Agency completed research on
health risks associated with
drinking water exposures to
disinfection byproducts. This
research provides scientific
support for more robust health
risk assessments of both regu-
lated and unregulated disin-
fection byproducts, enabling
water suppliers to make more
informed treatment decisions
that control exposure to disin-
fection byproducts while meet-
ing disinfection requirements.
-------
GOAL 2 AT A GLANCE
FY 2008
Performance
Measures
Met = 20
Not Met = 7
Data Available
After 11/17/08 = 11
(Total Measures = 38)
How Funds Were Used: Net Program Costs
(Dollars inThousands)
Compliance and
Environmental
Healthy Communities Stewardship
and Ecosystems
Goal 2 Performance Measures
$784,827.6
Land
Preservation
and Restoration
$3,210,535.4
33%
,453,306,9
15%
Goal 2 FY 2008 Performance and Resources
Strategic Objective
Objective 1—Protect Human Health: Protect human health by reducing exposure to con-
taminants in drinking water (including protecting source waters), in fish and shellfish,
and in recreational waters.
Objective 2—Protect Water Quality: Protect the quality of rivers, lakes, and streams on a
watershed basis and protect coastal and ocean waters.
Objective 3—Enhance Science and Research: Provide and apply a sound scientific foun-
dation to EPA's goal of clean and safe water by conducting leading-edge research and
developing a better understanding and characterization of the environmental outcomes
under Goal 2.
Goal 2 Total
FY 2008
Obligations
(in thousands)
Objective 3:
Enhance Science
and Research
%of
Goal 2
Funds
$1,339,331.9
$1,664,746.0
$144,891.9
$3,148,969.8
43%
53%
5%
100%
Due to rounding, some numbers might add up to slightly less or more than WO°/<
Challenges
Population growth and
climate factors are causing
concern about water scarcity.
Communities across the
country are facing chal-
lenges in securing reliably
safe supplies of drinking
water. Small drinking water
systems, including those
supplying drinking water
to tribes, are particularly
challenged by the need to
improve infrastructure and
develop the capacity to meet
new and existing standards.
Tens of thousands of
homes, primarily in tribal
communities, lack access to
basic sanitation. Challenges
remain in providing first-
time access to tribal homes
for wastewater services and
continued service to those
homes already connected.
Even where facilities exist,
technical, financial, and
managerial capacity
in small, rural, and tribal
communities remains a
significant issue. EPA
continues to participate in
an Interagency Tribal Infra-
structure Task Force and
Access subgroup to address
challenges in tribes. In FY
2008, the Access subgroup
developed an implementa-
tion plan and recommenda-
tions to the task force. In
addition, five workgroups
were established to address
clean water and drinking
water quality issues in tribal
communities.
o
H
IV)
O
O
0)
o
3
H
C
CO
m
z
1 3
-------
h
or:
0
Q.
u
IT
o:
O
LL
o;
LU
D_
CO
O
O
CM
OL
O
Q.
LU
Of.
VI
z
LU
N
O
14
Key Achievements
• Reduced Municipal Solid
Waste. In FY 2007, the most
recent year for which there
are data, EPA contributed to
reducing, reusing, and recy-
cling 23.5 billion pounds of
municipal solid waste. This
is equivalent to reducing 6.9
million metric tons of carbon
equivalent.
In FY 2008, the Agency deter-
mined that 85 Superfund sites
were ready for anticipated use,
exceeding the annual target
of 30. For these sites, con-
struction remedies have been
completed; cleanup goals to
reduce unacceptable risk that
may affect current and future
land uses have been achieved;
"EPA increased its ability to assist during national
disasters by establishing a network of response labs this
year and through its 1,800 Volunteer Response Support
Corps employees."
—Susan Bodine, Assistant Administrator for Solid Waste and Emergency Response
• Cleanup Completed at 30 Su-
perfund Sites. In FY 2008, EPA
completed cleanup construction
("construction complete") at 30
Superfund sites, achieving its
annual target for that measure.
Since the Superfund Program's
inception, EPA has completed
construction at 1,060 sites
• Superfund Sites Ready for
Anticipated Use. Superfund
cleanup helps communities
return some of the nation's
worst hazardous waste sites
to safe and productive uses.
and institutional controls have
been implemented. The cumu-
lative number of sites ready for
anticipated use sitewide is 343.
Research on Ethanol and Fuel
Byproducts. In FY 2008, EPA
conducted modeling and field
investigations to evaluate how
methyl tertiary butyl ether
(MTBE), ethanol, and other
fuel additives move and trans-
form in the environment. Reg-
ulators in California, Michigan,
New York, Utah, Virginia, West
Virginia, and Wisconsin are
using EPA tools to predict the
impact of ethanol on gasoline
spills and to examine effects on
water aquifers.
-------
GOAL 3 AT A GLANCE
FY 2008
Performance
Measures
Met = 22
Not Met = 5
Data Available
After 11/17/08 = 2
(Total Measures = 29)
How Funds Were Used: Net Program Costs
(Dollars inThousands)
Compliance and
, _ Environmental
Healthy Communities Stewardsnip
and Ecosystems
\ $784,827.6
Goal 3 Performance Measures
Goal 3 FY 2008 Performance and Resources
Strategic Objective
Objective 1—Preserve Land: Reduce adverse effects to land by reducing waste genera-
tion, increasing recycling, and ensuring proper management of waste and petroleum
products at facilities in ways that prevent releases.
Objective 2—Restore Land: Control the risks to human health and the environment by
mitigating the impact of accidental or intentional releases and by cleaning up and
restoring contaminated sites or properties to appropriate levels.
Objective 3—Enhance Science and Research: Provide and apply sound science for pro-
tecting and restoring land by conducting leading-edge research and developing a better
understanding and characterization of environmental outcomes under Goal 3.
Goal 3 Total
FY 2008
Obligations
(in thousands)
Objective 3:
Enhance Science
and Research
%of
Goal 3
Funds
$220,845.8
$2,909,314.3
$80,375.3
$3,210,535.4
7%
91%
3%
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
Challenges
While EPA's Superfund
Remedial Program met all
of its FY 2008 targets, it is
facing significant challenges,
including maintaining a
high rate of construction
completions in future years.
Many of the remaining
National Priorities List sites
will involve more complex
cleanups than those com-
pleted to date. In addition,
the Department of Defense
is currently inventorying and
assessing all military muni-
tions response sites. Newly
discovered munitions at
National Priorities List facili-
ties are delaying cleanups at
federal facilities. Finally,
recent dramatic increases in
the price of fuel, materials,
and labor across the country
are resulting in rapidly es-
calating construction costs,
which are likely to affect
program progress.
The goal of completing
13,000 cleanups per year
from leaking underground
storage tanks has become
increasingly challenging to
EPA and our state and tribal
partners. There are a number
of factors affecting this chal-
lenge, such as the increas-
ing costs and complexity of
cleanups, decreasing state
budgets and increasing state
workloads, and other fac-
tors.
o
H
ro
o
o
o>
o
3
H
C
CO
m
z
1 5
-------
Goal4: Healthy Communities
and Ecosystems ^
Protect, sustain, or restore the health of people,
communities, and ecosystems using integrated and
comprehensive approaches and partnerships.
i— i
o:
0
a.
u
cr
o:
O
LL
or:
LU
D_
CO
O
O
(M
or:
o
D_
LU
a:
0)
z
LU
N
O
Kej Achievements
• Chemical Assessment and Man-
agement Program. Launched in
March 2008, the Chemical As-
sessment and Management Pro-
gram uses industry-provided
data to create risk and hazard-
based prioritizations to assess
whether high- and moderate-
production volume chemicals
produced in the United States
pose risks to human health and
the environment. In FY 2008,
the Agency completed 150
risk-based prioritizations, and
55 hazard-based prioritizations
are on track to be completed in
early FY 2009.
Re-evaluating Risks of Older
Pesticides. In FY 2008, EPA
completed its last pesticide
"Reregistration Eligibility
Decision" under the Federal
Insecticide, Fungicide, and
Rodenticide Act, the federal law
regulating pesticides. Under
this multi-year effort, the Agen-
cy identified a wide range of
potential risks to human health
and the environment posed
by older pesticides still on the
market and developed plans
to address the risks, including
reducing workers' exposure
to pesticides and eliminating
pesticides in urban watersheds.
Revitalize Brownfields Proper-
ties. FY 2007 results for EPA's
Brownfields and Land Revital-
ization Program show that 1,371
properties were assessed, and
77 properties were cleaned up,
leveraging 5,209 jobs and $ 1.7
billion in cleanup and redevelop-
ment funding. In addition, 2,399
acres were made ready for reuse
through site assessment or prop-
erty cleanup. FY 2008 results will
be available in FY 2009.
• Remediating Contamination in
the Great Lakes. In 2007 (the
most recent year for which
EPA has data), approximately
973,000 cubic yards of contam-
inated sediments were remedi-
ated in the Great Lakes by EPA
and its partners. This includes
450,000 cubic yards pursuant
to the Great Lakes Legacy Act.
FY 2008 results will be avail-
able in the fall of 2009.
• Restoring Gulf of Mexico
Habitat. In FY 2008, EPA's
regional offices and industry
partners coordinated efforts of
more than 72 organizations to
restore a total of 25,215 acres
of coastal and marine habitat
in the Gulf of Mexico, signifi-
cantly exceeding EPA's FY 2008
goal of 18,200 acres.
"EPA has now completed the reassessment of all
pesticides, including those in food and around
homes, resulting in the most health-protective
standards in the world for pesticide safety."
—Jim Gulliford, Assistant Administrator for the
Office of Prevention, Pesticides, and Toxic Substances
-------
GOAL 4 AT A GLANCE
FY 2008
Performance
Measures
Met = 50
Not Met = 20
Data Available
After 11/17/08 = 22
(Total Measures = 92)
How Funds Were Used: Net Program Costs
(Dollars inThousands)
Healthy Communities
and Ecosystems
Clean Air
Goal 4 Performance Measures
Objective!: Objective 2:
Chemical, Organism, Communities
and Pesticide Risks
Objectives: Objective 4:
Ecosystems Enhance Science
and Research
Goal 4 FY 2008 Performance and Resources
Strategic Objective
Objective 1—Chemical, Organism, and Pesticide Risks: Prevent and reduce pesticide,
chemical, and genetically engineered biological organism risks to humans, communi-
ties, and ecosystems.
Objective 2—Communities: Sustain, clean up, and restore communities and the ecologi-
cal systems that support them.
Objective 3—Ecosystems: Protect, sustain, and restore the health of natural habitats and
ecosystems.
Objective 4—Enhance Science and Research: Provide a sound scientific foundation for
EPA's goal of protecting, sustaining, and restoring the health of people, communities,
and ecosystems by conducting leading-edge research and developing a better under-
standing and characterization of environmental outcomes under Goal 4.
Goal 4 Tola I
FY 2008
Obligations
(in thousands)
$475,850.1
$298,998.4
$272,638.5
$405,819.9
$1,453,306.9
%of
Goal 4
Funds
33%
21%
19%
28%
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
• Global Change Research.
EPA's Global Change Re-
search Program continues to
assess the potential impacts
of climate change and
climate variability on the
Challenges
Weather, water temperatures,
and the ability to acceler-
ate reduction of nitrogen,
phosphorous, and sediment
pollution loads to the Chesa-
peake Bay between now and
2010 will determine EPA's
success in meeting its long-
range strategic target for
acres of submerged aquatic
vegetation. Based on FY 2007
monitoring results available
in FY 2008, the Agency had
achieved 35 percent of the
United States and to evalu-
ate alternative adaptation
strategies. In support of the
U.S. Climate Change Science
Program, EPA completed
two major assessments:
long-term goal of 185,000
acres of submerged aquatic
vegetation, and it has set
a challenging target of 45
percent by 2011. Monitoring
results for FY 2008 will be
available in March 2009.
EPA's chemical risk assess-
ment and management ca-
pabilities are being severely
challenged to meet President
Bush's commitment under
the "Security and Prosper-
ity Partnership for North
Preliminary Review of Adapta-
tion Options for Climate-Sensitive
Ecosystems and Resources and
Analyses of the Effects of Global
Change on Human Health and
Welfare and Human Systems.
America," to assess the safety
of 6,300 high- and moderate-
volume chemicals and initi-
ate risk management actions
where needed by 2012. EPA
has been successful in meet-
ing its FY 2008 assessment
targets. The Agency is ex-
pected to accelerate the pace
of assessment in upcoming
years to ensure that it meets
Security and Prosperity Part-
nership commitments.
o
H
IV)
O
O
0)
o
3
H
C
CO
m
z
1 7
-------
Goal 5: Compliance and
Environmental Stewardship
Protect human health and the environment through ensuring compliance with environmental
requirements by enforcing environmental statutes, preventing pollution, and promoting envi
ronmental stewardship. Encourage innovation and provide incentives for government, business,
and the public that promote environmental stewardship and long term sustainable outcomes.
or:
0
Q.
U
OL
a
O
LL
£
LU
D_
CO
O
O
CM
Q:
O
Q.
LU
Of.
(fi
z
LU
N
O
Key Achievements
• Reducing, Treating, and Eliminat-
ing Pollutants. In FY 2008, under
EPA's environmental compli-
ance programs, EPA negotiated
commitments in enforcement
settlements for an estimated 3.9
billion pounds of pollutants to
be reduced, treated or eliminated
in the first year after pollution
controls are installed. This is
3.01 billion pounds more than
the 890 million pounds estimat-
ed to be reduced in FY 2007.
• Investments in Pollution
Control Technology. In FY
2008, in compliance with EPA
requirements, regulated enti-
ties committed to invest a total
of $11.8 billion in pollution
control and abatement equip-
ment and technologies to
improve their environmental
performance or environmental
management practices.
"In FY 2008, EPA concluded enforcement actions re-
quiring polluters to spend at least $11 billion on pol-
lution controls, clean-up and environmental projects.
These actions will keep at least an estimated 3 billion
pounds of pollutants out of the environment each
year. This year continues EPA's trend of record-setting
results to protect the nation's air, water and land."
—Granta Nakayama, Assistant Administrator for the
Office of Enforcement and Compliance Assurance
-, . ><*
aLeaCTrtf
Preventing Pollution and
Conserving Energy. During FY
2008, EPA made significant
progress in preventing pollu-
tion at the source as businesses;
institutions; and federal, state,
and local governments partici-
pated in pollution prevention
programs. By the end of FY
2008, pollution prevention pro-
gram participants reduced 839
million pounds of hazardous
materials and saved 21.4 billion
gallons of water. In addition,
final FY 2007 results became
available in FY 2008 and show
reductions of 1.5 million
metric tons of carbon dioxide
equivalent (MMTC02e) and a
cost savings of $187 million.
Environmentally Sound Comput-
ers. EPA's Electronic Product
Environmental Assessment
Tool Program, which as-
sists institutions purchasing
electronics in selecting envi-
ronmentally sound computer
products, helped conserve
3,292 billion British thermal
units of electricity and save
$83.6 million in energy costs
in FY 2007. During FY 2008,
the program initiated efforts
to develop similar voluntary
consensus standards for televi-
sions and other electronic
products.
• Advancing Sustainability.
EPA's People, Prosperity, and
the Planet Program held its
fourth annual student design
competition for sustainability
in 2008. Winning designs in-
cluded technology to produce
plastic from wastewater, a
laboratory to produce biodiesel
from a cafeteria's vegetable oil
waste, and a hand-held water
sanitizer for disinfecting drink-
ing water in households of
poor communities around the
world. EPA supported these
finalists with grant funding to
bring the designs to market.
-------
GOAL 5 AT A GLANCE
FY 2008
Performance
Measures
Met = 10
Not Met = 3
Data Available
After 11/17/08 = 5
(Total Measures = 18)
How Funds Were Used: Net Program Costs
(Dollars inThousands)
Healthy Communities
and Ecosystems
Clean Air
Goal 5 Performance Measures
Objective!:
Improve Compliance
Goal 5 FY 2008 Performance and Resources
Strategic Objective
Objective 2:
Improve Environmental
Performance Through
Pollution Prevention
and Innovation
Objective 3:
Improve Human
Health and the
Environment in
Indian Country
Objective 1—Improve Compliance: By 2011, maximize compliance to protect human
health and the environment through enforcement and other compliance assurance
activities by achieving a 5% increase in the pounds of pollution reduced, treated, or
eliminated by regulated entities, including those in Indian Country.
Objective 2—Improve Environmental Performance through Pollution Prevention and Innovation:
Improve environmental protection and enhance natural resource conservation on the
part of government, business, and the public through the adoption of pollution preven-
tion and sustainable practices that include the design of products and manufacturing
processes that generate less pollution, the reduction of regulatory barriers, and the
adoption of results-based, innovative, and multimedia approaches.
Objective 3—Build Tribal Capacity: Assist all federally recognized tribes in assessing the
condition of their environment, help in building their capacity to implement environ-
mental programs where needed to improve tribal health and environments, and imple-
ment programs in Indian Country where needed to address environmental issues.
Objective 4—Enhance Science and Research: Strengthen the scientific evidence and
research supporting environmental policies and decisions on compliance, pollution
prevention, and environmental stewardship.
Goal 5 Total
FY 2008
Obligations
(in thousands)
$526,596.0
$119,226.7
$79,244.1
$59,760.8
$784,827.6
%of
GoalS
Funds
67%
15%
10%
8%
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
Challenges
Tracking performance and
results in Indian Country
continues to present chal-
lenges. EPA is working with
tribes to improve perfor-
mance measures and to
implement GAP Online, an
electronic work plan devel-
opment and reporting sys-
tem. By enabling the Agency
to standardize, centralize,
and integrate regional data
and to assign accountability
for program performance,
the system will strengthen
EPA's ability to monitor and
evaluate performance results
in Indian Country and im-
prove environmental protec-
tion on tribal lands.
Measuring the results of
the Office of Research and
Development's efforts to
encourage decision-makers
to incorporate sustainabil-
ity principles into human
health and environmental
decisions is a difficult chal-
lenge. EPA has developed
new measurement tools
to better gauge the annual
and long-term success of
its Science and Technology
for Sustainability Research
Program.
o
H
ro
o
o
o>
o
3
H
C
CO
m
z
1 9
-------
Financial Performance
or:
0
Q.
u
IT
o:
O
LL
or:
LU
D_
CO
O
O
(M
ce.
O
a.
LU
o:
0)
z
LU
N
O
20
Sound Financial Management: Good for the Environment, Good for the Nation
EPA continues to protect
the environment with the
support of strong financial
management. The Agency's accom-
plishments demonstrate that EPA
adheres to the highest standards for
financial management.
For the 9th consecutive year, the
Agency's Office of Inspector Gen-
eral (OIG) issued an unqualified or
"clean" opinion on EPA's financial
statements. This means that the
auditors can provide reasonable
assurance that EPA's financial state-
ments are presented fairly in all
material respects and conform to
generally accepted accounting prin-
ciples for the federal government.
In simple terms, a clean opinion
means that the Agency's financial
numbers are reliable.
EPA's Financial Statements for Fiscal Year 2008
The table below displays assets,
liabilities, and net position as of
September 30, 2008 and September
30,2007. The "Net Cost of Opera-
tions" line shows EPA's gross cost
to operate, minus exchange revenue
earned from its activities. Together,
these two statements provide infor-
mation about key components of
EPA's financial condition—assets,
liabilities, net position, and net
cost of operations.
Accounting 101
Assets—What EPA owns
and manages
Liabilities—Amounts EPA
owes as a result of past
transactions or events
Net position—The difference
between assets and liabili-
ties (similar to net worth)
Net cost of operations—The
difference between the
costs incurred by EPA pro-
grams and EPA's receipts
(in thousands)
Total Assets
Total Liabilities
Net Position
Net Cost of Operations
FY 2007
$17,554,689
$1,755,298
$15,799,391
$8,713,206
FY 2008
$17,106,998
$1,664,042
$15,442,956
$8,041,210
Increase (Decrease)
($447,691)
($91,256)
($356,435)
($671,996)
Assets—What EPA Owns and Manages
EPA's assets were worth $17.1 bil-
lion at the end of FY 2008. More
than 92 percent of EPA's assets fell
into two categories: 1) its Fund
balance with the Department of
the Treasury, the equivalent of
the Agency's "checkbook" balance
available to pay expenses, and 2)
investments, which will be used
to pay for future Superfund or
leaking underground storage tank
cleanups. All of EPA's investments
are backed by U.S. government
securities.
-------
Improving Management and Results
The President's
Management Agenda
The President's Management Agen-
da challenges federal agencies to be
"citizen-centered, results-oriented,
and market-based" (www.white-
house.gov/results). In FY 2008,
EPA achieved successful "green"
progress and status ratings every
quarter for all five government-wide
initiatives. EPA's scores demon-
strate that the Agency is among the
highest-performing entities in the
federal government.
The Program
Assessment
Rating Tool
In FY 2008, EPA developed and
implemented an action plan for
Program Assessment Rating Tool
(PART) measures that leveraged on-
going strategic and annual planning
and reflected measure improvements.
These measures will be incorporated
into EPA's budget and other docu-
ments, including future Performance
and Accountability Reports. Since
all of EPA's programs have been as-
sessed under the PART, there were no
new assessments in FY 2008.
Initiative
Human Capital: Fosters strong performance and results
by improving human capital management, account-
ability, and linkage between employee performance and
EPA goals and mission accomplishment.
Commercial Services Management: Having public-private
competition enables the Agency to determine the most
economical mode of delivering services while ensuring
the highest quality of those services.
Expanded E-Government: Utilizes technology to bet-
ter serve the United States and its people including
electronic information, online transactions, and new
information management capabilities.
Improved Financial Performance: Focuses on running
environmental programs in a fiscally responsible manner
so citizens' dollars are used wisely and their health and
environment are protected.
Performance Improvement: Contributes to better EPA
performance, measurement and management, increased
accountability, more informed decision-making, and
more transparent reporting of environmental and human
health results to the public.
Eliminating Improper Payments : Focuses on identifying,
preventing, and eliminating erroneous payments.
Status
•
Green
•
Green
•
Green
•
Green
•
Green
•
Green
Progress
•
Green
•
Green
•
Green
•
Green
•
Green
•
Green
Distribution of PARTed Programs
Across EPA's Strategic Goals
Goal 5,
Compliance/
Stewardship: 6
Enabling Support
Programs: I
o
H
IV)
o
o
0)
2 1
The Improper Payments Information Act of 2002 requires the Agency to annually review all programs and activities that it administers and identify all such programs and activities sus-
ceptible to significant improper payments. Significant improper payments are annual payments in the program exceeding both 2.5 percent of the program payments and $10 million.
-------
. - ..
EPA Holds Itself Accountable
h
ce.
o
Q.
LU
OL
OL
O
LL
Qr:
LU
D_
CO
O
O
CM
Management Integrity
EPA strives to manage taxpayer dollars efficiently and
effectively and to ensure the integrity of our programs
and processes to deliver the best results to the Ameri-
can people. The Federal Managers' Financial Integrity
Act (FMFIA) requires agencies to conduct an annual
evaluation of their internal controls over programs
and financial systems and report the results to the
President and Congress. As part of this effort, agencies
are required to report on the effectiveness of internal
controls over financial reporting.
In FY 2008, the Administrator issued an unqualified
statement of assurance. During its FY 2008 evaluation,
the Agency found no material weaknesses in the design
or operation of internal controls over programmatic
operations (FMFIA Section 2). A material weakness is
a condition that could significantly impair or threaten
fulfillment of a major Agency program, function,
or activity and is significant enough to report to the
President and Congress. Additionally, the evaluation
found that the Agency's financial systems conform to
government-wide financial systems requirements and
substantially comply with requirements.
EPA's Key Management Challenges for
FY 2008: Reported by the Office of
Inspector General
1. Threat and Risk Assessments
2. EPA's Organization and Infrastructure
3. Performance Measurement
4. Water and Wastewater Infrastructure
5. Meeting Homeland Security Requirements
6. Oversight of Delegation of States
7. Chesapeake Bay Program
8. Voluntary Programs - Update
For details see "Section IV, Other Accompanying
Information," in the 2008 Performance and
Accountability Report, EPA's Key Management
Challenges for FY 2008 (www.epa.gov/ocfo/
par/2008par/index.htm.).
or:
o
Q.
LU
tr
VI
z
LU
N
O
Management Controls
During FY 2008, EPA conducted its
annual assessment on the effec-
tiveness of internal controls over
financial reporting, as required
by the Office of Management and
Budget Revised Circular No. A-123.
Through this process, EPA identi-
fied and documented 8 financial
management processes and tested
275 key controls. As of June 30,
2008, EPA found no material weak-
nesses.
22
-------
Fiscal Year 2008 Assurance Statement
The U.S. Environmental Protection Agency's (EPA's) management is responsible for establishing and
maintaining effective internal control and financial management systems that meet the objectives of
the Federal Managers' Financial Integrity Act (FMFIA). EPA conducted its assessment of the effective-
ness of internal control over the effectiveness and efficiency of operations and compliance with appli-
cable laws and regulations in accordance with OMB Circular A-123, Management's Responsibility for
Internal Control. Based on the results of this evaluation, I can provide reasonable assurance that as of
September 30, 2008, no material weaknesses were found in the design or operation of the Agency's
internal controls.
In addition, EPA conducted its assessment of the effectiveness of internal control over financial report-
ing, which includes safeguarding of assets and compliance with applicable laws and regulations, in
accordance with the requirements of Appendix A of OMB Circular A-123. Based on the results of this
evaluation, I can provide reasonable assurance that as of June 30, 2008, no material weaknesses were
found in the design or operation of the internal controls over financial reporting.
Stephen L. Johnson
Administrator
November 12, 2008
j -
To submit comments or questions on the FY2008 Performance and
Accountability Report, please e-mail: ocfoinfo@epa.gov.
-------
Office of Planning, Analysis, and
Accountability (2724A)
United States Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, DC 20460
www.epa .gov/ocf o
EPA-190-R-09-001
January 2009
------- |