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              United States Environmental Protection Agency
               Office of the Chief Financial Officer (2701 A)
                 Publication Number: EPA-205-S-05-001
                             February 2005
                           www. epa. go v/ocfo
Recycled/Recyclable Printed on 100% Postconsumer, Process Chlorine Free Recycled Paper

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                       Table of Contents
Introduction and Overview:
Annual Performance Plan and Budget Overview.
Goals:
Goal 1: Clean Air And Global Climate Change	1-1
Goal 2: Clean and Safe Water	2-1
Goal 3: Land Preservation and Restoration	3-1
Goal 4: Healthy Communities and Ecosystems	4-1
Goal 5: Compliance and Environmental Stewardship	5-1

Appendices:
Categorical Grants Program	A-1
Infrastructure Financing	B-1
Trust Funds	C-1
Budget Tables:
   Agency Resources by Appropriation	D-1
   Agency Resources by Goal	D-2
   Agency Workforce by Goal  	D-3
   Program Projects	D-4
List of Acronyms	E-1

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                                         Annual Performance Plan and Budget Overview


                              EPA }s Mission

      The mission of the Environmental Protection Agency (EPA) is to protect and safeguard
human health and the environment, with a new focus on collaboration and partnerships with our
Geographic and Regional  partners.  This budget supports the Administration's commitment to
environmental results - increasing the  pace of improvement and  identifying new and  better
ways to carry out our mission.
     Annual Performance Plan and Budget Overview

      The EPA's FY 2006 Annual Performance Plan and  Budget requests $7.6 billion in
discretionary budget authority and 17,631  Full Time Equivalents  (FTE).   This request reflects
the Agency's efforts to work with its partners toward protecting air, water, and land, as well as
providing for EPA's role in safeguarding the Nation from terrorist acts. The request echoes the
Administration's commitment to setting high environmental protection standards, while focusing
on results and performance, and achieving  goals outlined in the  President's Management
Agenda.

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.

      The FY 2006  EPA President's  Budget implements the Clean Air and Global Climate
Change  goal through national programs designed to provide healthier outdoor and indoor air for
all Americans, protect the stratospheric ozone layer, minimize the  risks from radiation releases,
reduce greenhouse gas intensity,  and enhance science  and  research.   EPA's key clean  air
programs - particulate matter, ozone, acid rain, air toxics,  indoor air, radiation and stratospheric
ozone depletion - address  some of the highest  health and environmental risks faced by the
nation.

      EPA's strategy for achieving clean outdoor air includes  a comprehensive,  multi-pollutant
approach that  combines national and local  measures,  with  implementation  responsibilities
carried out by the most appropriate and effective level of government.   To  address the high
priority of reducing nitrogen  oxides and sulfur  dioxide emissions,  the Agency continues to
promote  the enactment of the Clear Skies legislation  that the  Administration submitted to
Congress in 2002.   Although Clear Skies is the more comprehensive and  cost effective
approach and therefore the strongly preferred solution, the Administration is also pursuing a
regulatory path that would achieve many of the same benefits should legislation not be enacted.
EPA has proposed the Clean Air Interstate Rule  (CAIR) which regulates the transport of power
plant emissions of SO2 and  NOx across state  lines  via  a market-based approach  similar to
Clear Skies and the existing Acid Rain program. Clean fuels and clean technologies are also an
integral  part of reducing  emissions from mobile sources.  The FY 2006 President's Budget
provides  $15.0 million for the Clean  Diesel Initiative.  EPA  and a coalition of clean diesel
interests  will work together to expand the retrofitting of diesel engines  into new sectors  by
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Annual Performance Plan and Budget Overview
adopting  a  risk-based strategy, targeting key places and working with specific use sectors to
identify opportunities to accelerate the adoption of cleaner technologies.

       EPA's Climate  Protection  Programs will continue to contribute to  the  President's 18
percent greenhouse gas intensity  reduction goal by 2012.  A FY 2006 funding initiative for the
Climate Change Program is the  Methane to  Markets Partnership - a U.S. led  international
initiative that promotes cost-effective, near-term methane recovery and use as a clean energy
source.  The program provides for the development and implementation of methane projects in
developing countries and countries experiencing economic transition.

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.

       The FY  2006 EPA  President's Budget implements the Clean and Safe  Water goal
through programs  designed to provide improvements  in the quality of surface waters and
drinking water.  In FY 2006, EPA will work with States and tribes to continue to accomplish
measurable improvements in the safety of the nation's drinking water, and in the conditions of
rivers,  lakes,  and coastal waters.  With the  help  of these partners, EPA expects to make
significant progress in these  areas, as well as support a few more focused water initiatives.

       During FY 2006, EPA,  the States, and  community water systems will build  on past
successes while working toward the FY 2008 goal of assuring that 95 percent of the population
served by  community  water  systems  receives  drinking  water that meets  all  applicable
standards.  To help ensure that water is safe to drink, the FY 2006 President's Budget requests
$850 million for the Drinking  Water State Revolving Fund.

       In FY  2006,  EPA will work with States to make continued progress toward the clean
water goals to implement core clean water programs, including innovations that apply programs
on a watershed  basis, and to accelerate efforts to improve water quality on a watershed basis.
To protect  and  improve water quality, a top  priority is to  continue to support water quality
monitoring.   The  Agency's  request expands  the  monitoring  initiative begun in  FY  2005 to
establish a nationwide monitoring network and expand the baseline water quality assessment to
lakes and streams. The initiative will allow EPA  to establish scientifically  defensible water
quality data and information essential for cleaning  up and protecting the Nation's waters.  To
support sustainable wastewater infrastructure, EPA will continue to provide annual capitalization
to the Clean Water State Revolving Funds (CWSRF).  The budget will allow EPA to meet the
Administration's Federal capitalization target of $6.8  billion total for 2004 - 2011 and enable the
CWSRF to eventually revolve at a  level of $3.4 billion.

Goal 3: Land Preservation and Restoration

       Preserve and restore the land by using innovative waste management
      practices and cleaning up  contaminated  properties to reduce risks posed
       by release of harmful substances.
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                                          Annual Performance Plan and Budget Overview
       The FY 2006 President's  Budget implements the Land Preservation and  Restoration
goal through continued promotion of the Land Revitalization Initiative, first established in 2003.
Revitalized land can be used in many beneficial ways, including the creation of public parks, the
restoration of ecological  systems, the establishment of multi-purpose developments, and the
establishment of new businesses.  Regardless of whether a property is an abandoned industrial
facility, a waste disposal  area, a former gas station,  or a Superfund site, this initiative helps to
ensure that  reuse considerations are fully  integrated into all EPA cleanup  decisions and
programs. Through the One Clean-up Program, the Agency will also work with its partners and
stakeholders to enhance coordination, planning and communication across the full range of
Federal,  State,  Tribal and local  clean-up programs to  promote  consistency  and enhanced
effectiveness at site cleanups.

       Enforcement activities  are also critical to  the  Agency's ability to clean up the vast
majority of the nation's worst hazardous sites, by securing funding from Potentially Responsible
Parties (PRPs). The Agency will  continue to encourage  the establishment and use of Special
Accounts within the Superfund Trust Fund to finance  cleanups.  These accounts segregate site-
specific funds obtained from responsible parties that complete settlement agreements with EPA.
These funds can create an incentive for other PRPs to perform work they might not be willing to
perform or used by the Agency to fund clean up.  The  result is the Agency can clean up more
sites and preserve appropriated Trust Fund dollars for sites without viable PRPs.

       The FY 2006 President's Budget  funds the Superfund Appropriation  at $1.3  billion.
Within this total, the Superfund Remedial Program provides significant resources in EPA's effort
to preserve and restore  land to  productive use.    In  FY 2006, EPA anticipates completing
construction of remedies  at 40 Superfund sites.

       The FY 2006 President's Budget will also continue to promote the minimization of waste.
Through  the  Resource  Conservation  Challenge, a national effort has  been launched  to
challenge every American to prevent pollution and promote recycling  and reuse, and conserve
energy and materials. In FY 2006, EPA's municipal solid waste program will implement a set of
coordinated strategies,  including  source reduction  (also called waste prevention),  recycling
(including composting), combustion with energy recovery,  and landfilling.

Goal 4: Healthy Communities and Ecosystems

       Protect, sustain,  or  restore the  health  of  people,  communities,  and
       ecosystems  using  Integrated  and comprehensive  approaches  and
       partnerships.

       The FY 2006 President's Budget implements the Healthy Communities and Ecosystems
goal  through a  blend   of regulatory, voluntary  and  incentive-based  programs.     Some
environmental  issues are  best resolved  through  multi-media,  multi-stakeholder approaches.
The Healthy Communities and Ecosystems goal seeks  to reduce risks through community and
geographically  based programs: Brownfields, Wetlands  protection, and our nation's great water
bodies programs such as the Great Lakes, Gulf of Mexico and Chesapeake Bay. Another focus
is on ensuring safer chemicals and pesticides, which impact all media.  FY 2006 will be a key
year for the chemicals and pesticides programs as the Agency works to  complete the final

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Annual Performance Plan and Budget Overview
milestone in the ten-year pesticide tolerance reassessment program, which ensures older food-
use pesticides meet  the  latest scientific standards  for safety.  Core research in  this  goal
provides the scientific basis for EPA's human health and ecosystem programs and explores
cutting-edge issues that may become the problems,  or the solutions, of future environmental
protection.

       In FY 2006,  vital  community restoration of  abandoned contaminated properties will
remain a priority as the Brownfields program continues at $210 million.  The Great Lakes
program will  meld multi-media and multi-stakeholder efforts to remedy pollution, with the Great
Lakes  Legacy program  increasing  to $50 million to remediate sediment  contaminated  by
improperly managed old industrial chemicals. Toxic chemicals reduction is also the emphasis of
Community Action for a Renewed Environment projects, with an increase  of $7 million, which
will offer many  more communities  the opportunity to  improve  their environment through
voluntary action.  In the research area, over $5 million is requested for the Advanced Monitoring
Initiative to combine information technology with remote  sensing capabilities, to allow faster,
more  efficient response to changing environmental  conditions such as forest fires or storm
events, as well as current ecosystems stressors in sensitive areas such as the Great Lakes or
the Everglades.

Goal 5:  Compliance and Environmental Stewardship

       Improve   environmental   performance   through   compliance   with
       environmental  requirements,   preventing  pollution,   and  promoting
       environmental stewardship.  Protect human health and the environment by
       encouraging  innovation  and  providing  incentives  for  governments,
       businesses, and the public that promote environmental stewardship.

       The FY  2006  President's  Budget implements  the Compliance  and Environmental
Stewardship goal through technical assistance and  education, inspection and enforcement;
encouraging innovation and pollution prevention; and  through capacity-building and support for
tribal  environmental  programs.     Compliance  assistance  and  enforcement are  critical
components  of environmental protection.  EPA supports  the regulated community by assuring
requirements are clearly understood, and by helping industry identify cost-effective compliance
options. Compliance is maximized through assistance and incentives, and enforcement.

       In 2004,  the Agency achieved over one billion pounds in  pollutant reduction through
enforcement actions.  In FY 2006 EPA will further refine  its 'smart  enforcement' strategy that
combines inspection,  enforcement and compliance assistance strategies. The EPA will assist
the regulated  community  in  understanding and  complying with environmental  laws  and
regulations, and will  reduce noncompliance through inspections,  monitoring and ultimately
through enforcement,  where needed. The Agency will respond to complaints from the public;
strive  to secure  a level economic playing field for law-abiding companies;  and deter future
violations.

       The Agency also works to improve and encourage pollution prevention and sustainable
practices, helping industry move beyond compliance and become  partners  in protecting our
national resources and our citizens' health.  EPA works with manufacturers to increase energy
VI

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                                           Annual Performance Plan and Budget Overview


efficiency, find environmentally  preferable  substitutes for chemicals  of concern, and change
processes to reduce toxic waste.  Innovative front end  approaches also support state- and
tribal-level efforts to reduce pollution, leverage technology and increase communication through
data sharing and collaboration.

       In FY 2006 EPA will continue to work with industrial sectors to set pollution reduction
goals, provide tools and technical assistance, and identify innovative strategies to reduce  risks.
In the  tribal GAP  program, the Agency will support approximately 510  federally recognized
Tribes  in  assessing environmental  conditions  on their lands and  building environmental
programs  tailored  to their needs.   In addition,  the tribal  program is  looking to information
technology solutions and will integrate 10 existing Agency data systems  in using common
Identifier codes and data standards in 2006.

Homeland Security

       Homeland  security is a top  priority  for EPA and the nation. EPA plays a lead role  in
protecting U.S. citizens and the  environment from the effects of attacks that release chemical,
biological or radiological agents. Following the cleanup and decontamination efforts of 2001,
the Agency  has focused on ensuring we have the tools and protocols needed  to detect and
recover quickly from deliberate incidents.   The emphasis for FY  2006 is  on several areas:
decontamination of threat agents, protecting our water and food supplies, and ensuring trained
personnel and key  lab capacities are in place to be drawn upon in the event of an emergency.

       In FY 2006, the Agency request includes substantial new resources for these efforts.
$44  million  will support deployment of Water Sentinel, a  pilot monitoring and  surveillance
program that will promote early warning of intentional contamination events in drinking water
systems. Critical tools, training, and exercises will complement this project, in collaboration with
State, local  communities and water utilities. The program includes resources to create the
Water Alliance for  Threat Reduction to train  and prepare our nation's drinking water systems
operators.

       Response   to terrorist events  calls  for  decontamination from  many new hazards.
Environmental decontamination  research and preparedness response will increase by $19.4
million  and an additional $4 million  is requested for the Safe Buildings research program. To
support EPA's water security and decontamination programs, new resources ($11.6 million) are
also requested for Environmental Laboratory Preparedness and Response (ELPR) activities.
ELPR will plan for  certain fundamental laboratory network needs, such  as, (1) identification  of
labs, (2) appropriate  connectivity  between member  labs,  (3) standardized methods  and
measurements for  environmental samples  of terrorism-related agents of  concern, (4) training
and continuing education for member laboratories, (5) accreditation and accountability.

Workforce

       EPA  values its world class workforce and its expertise enables  us to meet our urgent
responsibilities across a broad range of national and local environmental issues.  In 2006 we
are making  a modest adjustment to EPA's workforce management strategy that will help us
better align resources, skills, and Agency priorities.  A key step  in this adjustment is  improving
the alignment between  the total number of positions authorized and on actual FTE utilization.
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Annual Performance Plan and Budget Overview
As such, EPA is reducing its Agency authorized FTE base by approximately 300 positions to
17,631, which is still above our current employee base and consistent with the Agency's historic
FTE levels The result of these reductions will not impede Agency efforts to maximize efficiency
and  effectiveness  in  carrying out  its programs and will not result in  overall  change  in the
numbers of FTE at EPA. The program project descriptions provided later in this  document,
provide the details of these changes
Note:  Due to timing and ongoing work on the Agency's Operating Plan, resources from the FY 2005
       Consolidated Appropriations Bill are not included in this document.
Vlll

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                                    Annual Performance Plan and Budget Overview
             Environmental Protection Agency's
                 Resources by Major Category
                              (Dollars in Billions)
           O Infrastructure
           D Trust Funds
           O Operating Programs
    $9
    $0
         1996  1997  1998  1999  2000  2001  2002  2003  2004  2005  2006
FYs 1996-2004 reflect EPA's final Enacted Operating Plan
FYs 2005-2006 reflect the President's Budget.  (Figures exclude offsetting receipts of $30 million in FY 2005
and $50 million in FY 2006.)


FY 2002 does not include $175.6 million provided for Homeland security in the Emergency Supplemental
Appropriations Act.
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Annual Performance Plan and Budget Overview
          Environmental Protection Agency's Workforce
18 000 -
17 500 -
17,000 -
16,500 -
16,000 -
15,500 -
1 5 000 -



17,082


17,152


17,739



18 110





17,670




17,558


17,478


17,741




17,277


17,904



17,631.
        1996   1997   1998   1999  2000   2001   2002   2003  2004   2005   2006
FYs 1995-2004 reflect actual FTE usage.

FY 2005 is the workforce ceiling based on total Agency authorized positions, not expected FTE
utilization.
FY 2006 reflects the President's Budget, which reduces the workforce ceiling based on
historical trends of actual usage, but will  not result in an overall change in the numbers of FTE
at EPA..

Note:  FY 2005 and FY 2006 FTEs include Public Health Service employees
     (approximately 80).
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                             Annual Performance Plan and Budget Overview
          Environmental Protection Agency's
                FY 2006 Budget by Goal
                   Total Agency: $7,571 Million
Goal 4
17.7%
               Goal 5
               10.1%
     Goal 3
     22.3%
GoaH
12.8%
                                                      Goal 2
                                                      37.2%
        Goal 1: Clean Air and Global Climate Change

        Goal 2: Clean and Safe Water

        Goal 3: Land Preservation and Restoration

        Goal 4: Healthy Communities and Ecosystems

        Goal 5: Compliance and Environmental Stewardship
                                                              XI

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                                          Goal 1:  Clean Air and Global Climate Change
       Goal 1:  Clean Air and Global Climate Change

Strategic Goal:  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.
      12.8% of Budget
                                    Resource Summary
                                              ($ in 000)



1 - Healthier Outdoor Air
2 - Healthier Indoor Air
3 - Protect the Ozone Layer
4 - Radiation
5 - Reduce Greenhouse Gas Intensity
6 - Enhance Science and Research
Goal 1 Total
Workyears *
FY 2005
President's
Budget
$660,428.2
$50,257.9
$22,760.6
$35,132.0
$111,516.0
$130,932.6
$1,011,027.3
2,760.2
FY2006
President's
Budget
$612,802.7
$48,451.1
$20,573.9
$38,839.2
$114,922.6
$133,293.2
$968,882.7
2,658.1


Difference
-$47,625.5
-$1,806.8
-$2,186.7
$3,707.1
$3,406.6
$2,360.7
-$42,144.6
-102.2
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

      EPA implements the Clean Air and Global  Climate  Change goal through national
programs designed  to provide healthier outdoor and indoor air for all Americans, protect the
stratospheric ozone layer, minimize the risks from radiation releases, reduce greenhouse gas
intensity, and enhance science and research.   In implementing the goal, EPA  carries out its
responsibilities through programs that include  several common elements:  setting risk-based
priorities;  facilitating regulatory reform  and  market-based approaches; partnering with state,
Tribal, and local governments, non-governmental organizations, and industry; promoting energy
efficiency; and using sound science.

      EPA's key clean air programs - particulate matter, ozone, acid rain, air toxics, indoor air,
radiation  and stratospheric  ozone depletion  - address some of the highest health  and
environmental risks faced by the nation. These programs have achieved results.  Every year,
state and Federal air pollution programs established under the Clean Air Act prevent tens of
thousands of premature mortalities, millions  of incidences of chronic and acute illness, tens of
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Goal 1:  Clean Air and Global Climate Change
thousands of hospitalizations  and emergency room  visits,  and millions of lost work days.
Between 1970 and 2003, gross domestic product (GDP) increased 176 percent, vehicle miles
traveled increased 155 percent, energy consumption increased 45 percent, and U.S. population
grew  by 39 percent. During the same  time  period,  total emissions  of the six principal air
pollutants dropped by 51 percent. The graphic below shows the decrease in emissions versus
the percentage growth in GDP, vehicle use, energy consumption, and population since 1970.
                                  of
200%
100°,
 50%
-50°,
                                        176%
                                        155%
45%


39%
                                         -51'

    70  80  90  95  98  97  98  99  00  01  02  03

       The benefits of implementing the Clean Air Act exceed costs by a factor of six or seven
to one, as noted in OMB's report, Informing Regulatory Decisions.  Based on EPA's estimates,
Clean Air Act costs have been relatively small compared to the dollar value of public health and
environmental benefits. For EPA's  voluntary climate change programs, every EPA dollar spent
returns $75 in energy savings. To achieve the Clean Air and Global Climate Change goal, we
will use the following strategies:

   •   Long term - We will make decisions today that increase  the pace of environmental
       progress and significantly enhance public health for generations to come.

   •   Collaborate - We will achieve our goals through meaningful and productive interaction
       with others who seek environmental progress and improved public health.

   •   Enhance Economic Growth and Prosperity - Our actions will not compromise our
       economic competitiveness, and will have benefits that justify their costs.

   •   Strategically  Focused and Performance-Based - We  will link our priorities to
       EPA's 2003-2008 Strategic  Plan:  Direction for the Future and  measure our success by
       our outcomes.
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                                             Goal 1: Clean Air and Global Climate Change
   •   National Standards, Compliance and Enforcement - We will set strong national
       standards, assist with compliance, and bring the full force of the law consistently and
       fairly on those who evade.

   •   Markets, Incentives and Innovation - We will  benefit from the power of markets
       and well-crafted incentives to increase the velocity of progress, stimulate technological
       innovation and reward performance.

   •   Best Science - We will generate, share and  rely on the best-available  scientific,
       engineering   and economic information to guide our endeavors.


       Historically,  environmental  progress has  been  achieved  largely by advances in
environmental technologies - including such  advances as catalytic converters on  cars and
trucks, sulfur dioxide (SO2) scrubbers, selective catalytic reduction  for nitrogen oxides (NOX)
removal, and reformulated gasoline.  EPA  can foster demand for new and innovative,  cost-
effective technologies  by  designing  and  promoting market-based  strategies, such  as the
President's  Clear Skies Initiative cap-and-trade  program,  that  create markets  and  provide
incentives to develop the most efficient, best-performing technologies.  Technological innovation
will continue to be the foundation that will enable us to reach aggressive goals over the  next 15
years that will match or exceed the progress we  have made in the past.  Hundreds  of new
products are under development, in testing, or coming to market that will further help meet air
quality goals. Fuel cells, hybrid  vehicles, renewable fuels, and zero-emission power plants are
only a few examples of the new  and emerging technologies that will help us achieve cleaner air
for all Americans over the next 15 years.

Healthier Outdoor Air

       EPA's strategy  for achieving clean  outdoor  air includes the President's Clear Skies
Initiative - a  comprehensive,  multi-pollutant approach  that combines national  and  local
measures, with implementation responsibilities carried out by the most appropriate and effective
level  of government.  Air pollution sources with  broad regional, national  or global impact -
emissions from power plants and other large sources, pollution from motor vehicles and fuels,
and stratospheric ozone depletion - are often most effectively handled at the Federal level. A
national approach allows for  the use  of  traditional, regulatory tools where appropriate, and
enables EPA to  implement innovative,  market-based techniques such as emissions  trading,
banking, and averaging, and other cost-effective national programs.   These Federal  programs
help states and Tribes both meet National Ambient Air Quality Standards (NAAQS) and reduce
public exposure to harmful levels of air toxics.

       States, Tribes, and local agencies can best address the regional and local problems that
remain after Federal measures  have been  fully applied.  Many of these approaches  employ
innovative techniques,  such as  early action compacts, diesel retrofits  and community-based
approaches  to toxics that are well-suited to the local nature of many air-related problems.  EPA
works closely with public- and private-sector partners  and stakeholders to develop the analytical
tools - such as monitoring, modeling, and emission factors and inventories - that allow states,
Tribes, and localities to  address these more localized  problems.

       To improve air quality and address the highest health and environmental risks, EPA will
proceed  with  Federal  stationary and mobile  source programs aimed  at achieving large,
nationwide, cost-effective reductions in emissions of particulate matter (PM) and its contributors
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Goal 1:  Clean Air and Global Climate Change
such as SO2, NOX, and elemental and organic carbon; ozone-forming NOX; and volatile organic
compounds (VOCs).  In FY 2006, we will continue our progress towards healthier air by helping
states, Tribes, and localities meet ozone and particulate matter air quality standards by their
attainment dates under the Clean Air Act via the  President's Clear Skies Initiative or,  should
legislation not be enacted, through the Clean Air Interstate Rule.  EPA is coordinating  its efforts
to implement these standards with the Regional Haze rule to maximize the ability of the states,
Tribes and regulated  community to respond to these requirements  in an  integrated fashion.
Continued research into air quality models and other tools will enable states and local areas to
attain these standards as  cost-effectively as  possible.  Joint efforts with Canada and Mexico will
address transboundary air pollution in the U.S.-Canada and U.S.-Mexico border regions.  In
their efforts to attain the  standards, states  and  local areas will be able to take advantage of
market-based approaches.

       While significant progress has been made under  the existing Clean  Air Act,  further
benefits could be achieved faster, with more certainty, and at less cost to consumers through
Clear Skies - an Administration proposal  that expands the current Acid Rain program to
dramatically reduce nationwide power plant  emissions of SO2 and NOX, as well as, for the first
time ever, reduce mercury emissions from power plants. Clear Skies would reduce emissions
of these three pollutants by nearly 70 percent while encouraging innovation and the deployment
of cleaner, more  cost effective technologies.   The  Clear  Skies legislation was submitted to
Congress in 2002 and the Administration  continues to promote its enactment.

       Although  Clear Skies is  the more  comprehensive and cost effective approach  and
therefore the strongly preferred solution, the Administration is pursuing a regulatory  path  that
would achieve many of the same benefits should legislation not be enacted.  EPA has  proposed
the Clean Air Interstate Rule (CAIR) which regulates the transport of power plant emissions of
SO2 and NOx across state lines via a market-based approach  similar to Clear Skies. CAIR is
projected to reduce pollution from electrical power generation sources by close to 70% when
fully implemented.

       Both Clear Skies and CAIR call for utilities to utilize a cap and trade program modeled
after EPA's  successful Acid Rain SO2 Allowance Trading Program. The Acid Rain  Program
provides incentives for operators of power  plants to find  the best, fastest, and most efficient
ways to make the required reductions in emissions as well as to do make reductions earlier than
required.

       One  of EPA's highest  priorities  is meeting  the fine  particulate  matter  and  ozone
standards.  This will be achieved through implementation of Clear Skies or CAIR; the on-road
and non-road vehicle and fuels standards; and state, tribal, and local clean air programs. When
combined with emission reductions from the  recently completed Clean Air Non-road Diesel Rule
and other national control programs, the  reductions resulting from Clear Skies or the final CAIR
will allow most areas  of the country to meet the ozone and fine particulate matter standards
without having to impose  additional local controls.  States rely on EPA for modeling, emissions
factors and other tools as  they develop their clean air plans for particulate matter and ozone.

       Clean fuels and  clean technologies are an  integral part of  reducing  emissions  from
mobile sources. EPA  promotes the use of clean fuels - especially hydrogen, alternative fuels,
and near-zero sulfur fuels - as well as cleaner technologies. Cost-effective national standards,
public/private partnerships, market incentives, and consumer education campaigns are some of
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                                             Goal 1:  Clean Air and Global Climate Change
the tools that will be used to accomplish this.  Opportunities exist to obtain significant reductions
from new non-road and existing diesel engines.  The Agency will continue to work with engine
manufacturers and fuel producers to assure smooth implementation of the 2007 Clean  Diesel
Program for trucks and buses. The Clean School Bus USA program has also led the Agency to
explore other avenues for retrofitting or replacing existing diesel engines.

       In FY 2006, EPA and a coalition of clean diesel interests will work together to expand the
retrofitting of diesel engines into new sectors by adopting a risk-based strategy, targeting key
places and working with specific use sectors to identify opportunities to accelerate the adoption
of cleaner  technologies  and fuels.   EPA  will partner with a diverse  group of stakeholders
including industry, state  and  local  governments,  public health  officials  and  environmental
organizations to develop strategies  for four sectors: construction,  ports,  freight, and school
buses. EPA's Clean Diesel  Initiative will achieve immediate results by working with this coalition
to leverage Federal funds with  private sector and state and local  support.  The Initiative will
complement regional  approaches, including  the  West  Coast Diesel Emissions Reduction
Collaborative, the Midwest  Clean Diesel Corridors Initiative, and  the  Boston Breathes  Better
Initiative.

       The  Clean Air Act  includes  a variety of  provisions that  address air toxics from all
categories  of sources.  The 188 hazardous air pollutants (HAPs) listed in the Act are emitted
from mobile sources, major  stationary sources and  area stationary sources. EPA implements a
two-phase program to  reduce emissions of air toxics from major stationary sources. In the first
phase, EPA set Maximum Achievable Control Technology  (MACT) standards.  In the second
phase, which is risk-based,  EPA examines each MACT standard eight years after promulgation
to determine if the health risk remaining from each industrial category from is considered safe.
Where appropriate, EPA will develop more stringent residual risk standards  to  reduce cancer
and non-cancer health risks.

Healthier Indoor Air

       The Indoor Air Program  addresses indoor air quality problems by characterizing the risks
of indoor air pollutants to human health, developing techniques for reducing  those risks, and
educating  the public about  what they can  do to reduce  their  risks from indoor air.  Through
voluntary partnerships with non-governmental and professional organizations, EPA educates
and encourages individuals, schools,  industry, the health care community, and others to take
action  to reduce health  risks in  indoor environments.  EPA also uses technology-transfer to
improve the design, operation,  and maintenance of buildings - including schools, homes, and
workplaces - to promote healthier indoor air.

Climate Protection Program

       EPA's Climate Protection Programs  continues to contribute to the greenhouse gas
reductions required to  meet the President's 18 percent greenhouse gas intensity reduction goal
by 2012.   For more than a decade, businesses  and  organization  have  partnered  with EPA
through voluntary climate protection programs to pursue common sense approaches.   Energy
Star and other voluntary programs have increased the use of energy-efficient  products and
practices and reduced emissions of carbon dioxide, as well as  methane and other greenhouse
gases with  very high global warming potentials. As these partnership programs spur investment
in advanced energy technologies and the  purchase of energy-efficient products, they  create
emissions reduction benefits that accrue over the  lifetime of the  investment or product.
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Goal 1:  Clean Air and Global Climate Change
       Offering recognition  for  innovative solutions  to commuting  challenges  faced  by
employers  and employees,  Best Workplaces for CommutersSM  is a  public-private sector
voluntary program advocating employee commuter benefits.  Established by the EPA and the
U.S. Department of Transportation (DOT), this program publicly recognizes employers whose
commuter benefits reach the National Standard of Excellence. Providing  commuter benefits
helps employers address limited or expensive parking,  reduce  traffic congestion,  improve
employee recruiting and  retention,  and minimize the environmental  impacts associated with
drive-alone commuting.

       EPA continues to expand the  ENERGY STAR program for  energy  efficiency in the
residential, commercial, and  industrial sectors. The Buildings Sector represents one of EPA's
largest areas of potential, and at the same time is one of its most successful.  The Industrial
Sector goals include the Agency's work with state and  local governments, and state and  local
governments' work with industry  to prevent greenhouse gas emissions.  EPA will continue to
build on the success of the voluntary programs  in the industrial sector, focusing on reducing
CO2 emissions and continuing the highly successful initiatives to reduce methane emissions and
emissions of the high global-warming-potential gases.

       The SmartWay Transport Partnership is a national voluntary program developed by EPA
and freight industry representatives to reduce greenhouse gases and air pollution and promotes
cleaner, more efficient ground freight transportation. By 2012, the Partnership aims to reduce as
much as 33 to 66 million metric tons  of carbon dioxide (CO2) emissions and up to 200,000 tons
of nitrogen oxides  (NOX) emissions annually.  Partners achieve goals by  adopting  improved
practices,  processes and energy saving technologies  that are cost  effective,  cleaner, more
efficient, and capable of reducing greenhouse gas emissions.

       Under the Clean Automotive  Technology  (CAT) program, EPA works to: achieve ultra-
low pollution emissions; increase  fuel efficiency; and reduce greenhouse gases.  By promoting
the  development  of  cost-effective  technologies,  the  CAT  program  also  encourages
manufacturers to produce cleaner and more fuel-efficient vehicles. The program encourages
the commercialization of promising  technologies by actively pursuing  the transfer of EPA's
technologies into the private sector.  EPA  partners with  industry  to maximize the  viability of
targeted   technologies  for  commercial   production  through  cooperative  research  and
development agreements.

       An FY 2006 Climate Change  Program initiative is the Methane to Markets Partnership -
a U.S. led international initiative that promotes  cost-effective, near-term methane recovery and
use as a clean energy source.  The Partnership has the potential to deliver by 2015 annual
reductions in methane emissions  of up to 50 MMTCE or recovery of 500 billion cubic feet  (Bcf)
of natural gas. The Methane to Markets Partnership builds on  the success of EPA's domestic
methane voluntary  programs by creating an international forum to promote methane recovery
and use projects in developing countries.

       The benefits of increasing methane  recovery and  use include  reduced global methane
emissions,  enhanced  economic  growth, increased energy security,  and  improved local  air
quality. The Partnership initially targets three  major methane  sources:  landfills, underground
coal mines, and natural gas  and oil systems.  The Partnership will achieve its goals through
collaboration among developed countries, developing countries, and countries with economies
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                                             Goal 1: Clean Air and Global Climate Change
in transition - together with strong participation from the private sector, development banks, and
other governmental and non-governmental organizations.

Protecting the Ozone Layer

       EPA's Domestic Stratospheric Ozone  Protection Program will implement the provisions
of the Clean Air Act and  the Montreal Protocol on Substances  that Deplete the Ozone Layer
(Montreal Protocol), which will lead to the reduction and control  of ozone-depleting substances
(ODSs) in the  U.S. and  lower  health risks  to the American public due to exposure to UV
radiation.   EPA will  focus  its  efforts  on finding alternatives to  methyl bromide, an  ozone-
depleting substance.

Radiation
       In FY 2006, EPA will continue upgrading the national radiation monitoring system.  The
response time and data dissemination of the upgraded monitoring system would be significantly
better than that of the existing monitoring system, and the population coverage of the upgraded
system  would  be significantly  better than  the  population coverage of the existing  fixed
monitoring  system as well as allowing  for  greater  density of sampling locations near and
downwind from incidents  and maintenance and  calibration of deployable monitoring stations.
Additionally, EPA will equip up to two radiation teams with state-of-the-art radiation equipment
and technical tools to deploy to two simultaneous incidents in any part of the country.   Each
team will be fully capable of providing timely  and accurate information to support the Agency's
decontamination/disposal  decision-making efforts.   EPA  will also augment  existing applied
science radiological  labs  to  meet  emergency homeland  security needs by  developing
radiochemistry methods,  refining analytical protocols, and conducting  training.  EPA will  also
enhance lab response capability to ensure a minimal  level of  surge capacity for radiological
terrorism incidents.

Research

       EPA's air research provides  the  scientific  foundation  the  Agency  needs  to  fulfill
responsibilities under the Clean Air Act: to make the air  safe to breathe and protect human
health and the environment. This research focuses  on the NAAQS pollutants, as well as the
HAPs identified in the Act.

       In FY 2006, NAAQS research will continue  to strengthen the scientific basis  for the
periodic review and implementation of air quality standards.  This research is  concentrated on
PM,  and includes research on the other NAAQS pollutants on  an as needed basis (for  more
information    on    EPA's    programs    to     reduce    NAAQS    pollutants,     visit:
http://www.epa.qov/ord/htm/air.htm).   PM research is  aligned  with the  ten priority research
topics for PM identified by the National Research Council (NRC).  The NRC has conducted four
reviews of EPA's PM research since 1998 to ensure it is relevant to the highest priority research
needs and to monitor research performance.

       Air  toxics  research will  provide information  on  effects,  exposure,   and  source
characterization, as well  as other data to  quantify existing emissions  and to identify key
pollutants and strategies for cost-effective risk management.  In FY 2006, research will focus on
providing health hazard  and exposure methods,  data, and models to enable the Agency to
reduce  uncertainty in risk  assessments, and the production  of tools that enable national,
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Goal 1:  Clean Air and Global Climate Change
regional,  state, or local officials to identify and implement cost-effective approaches to reduce
risks from sources of air toxics.

       EPA  manages  its  air-related research  programs according to the Administration's
Investment Criteria for Research and Development. The Agency's detailed, externally-reviewed
multi-year plans for its air toxics and NAAQS-related research programs describe clear goals
and priorities, and are periodically updated to reflect changes in science and resources. As part
of the periodic multi-year plan revisions, EPA is examining the design of each program to help
identify  its outputs,  customers,  transfer needs,  and short-,  intermediate-,  and long-term
outcomes. Beginning in FY 2005, EPA is implementing  regular evaluations by independent and
external panels that provide prospective and retrospective  review of program relevance, quality,
and performance, including the program's design and performance goals. The Agency's Board
of Scientific Counselors, the chosen  mechanism for these reviews, will examine the particulate
matter research  program in  the  second quarter of FY 2005.  The NAAQS program will be
reassessed by OMB's Program Assessment Rating Tool (PART) in the spring of 2005.

       In FY 2006, a portion  of EPA's air research will be  accomplished using a new approach
to applied research funding  at EPA. This arrangement, based on the existing collaborative
framework between the media and research offices, is designed to ensure continued relevance
and quality of applied research at EPA.  In FY 2006, funds will be  provided to the Office of Air
and  Radiation  to use a fee-for-service  arrangement  with  the Office  of  Research  and
Development to obtain additional research focusing on the  Agency's highest priority air research
needs.
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                                                           Goal 2: Clean and Safe Water


                    Goal 2:  Clean and Safe  Water

Strategic Goal:  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.
                                      Resource Summary
                                                 ($ in 000)
^>u/
37.2% of Budget
1 - Protect Human Health
2 - Protect Water Quality
3 - Enhance Science and Research
Goal 2 Total
FY 2005
President's
Budget
$1,169,287.4
$1,653,907.9
$121,680.5
$2,944,875.7
FY2006
President's
Budget
$1,195,366.2
$1,483,516.9
$134,145.2
$2,813,028.3
Difference
$26,078.8
-$170,391.0
$12,464.8
-$131,847.4
Workyears
3,088.5
2,916.9
                                                                            -171.6
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

       Over the 30 years since enactment of the Clean Water and Safe Drinking Water Acts
(CWA and SDWA), government, citizens, and the private sector have worked together to make
dramatic progress in improving the quality of surface waters and drinking water.

       Thirty years ago, much of the  nation's tap water had either very  limited  treatment
(usually disinfection) or no treatment at all.  About two-thirds of the surface waters assessed by
states were not attaining basic water quality goals and were considered polluted.1  Some of the
Nation's waters were open sewers posing health risks and many water bodies were so polluted
that traditional uses, such as swimming, fishing, and  recreation, were impossible.

       Today, drinking water systems  monitor and  treat  water to assure compliance  with
drinking water standards covering a wide range of  contaminants. In addition, we now protect
sources of drinking water through activities  such as  regulating underground injection of wastes.
The number of polluted waters has been reduced and many clean waters are  even healthier.  A
massive  investment of Federal,  state,  and  local  funds  resulted in a  new generation  of
wastewater treatment facilities able to provide "secondary" treatment or better. EPA has  issued
national discharge regulations for over 50 industrial  categories. In addition, sustained efforts  to
1 United States Environmental Protection Agency Office of Water. 1998. Clean Water Action Plan: Restoring and Protecting
America's Water. Washington, DC: Government Printing Office.
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Goal 2:  Clean and Safe Water
implement "best management practices" have helped reduce runoff of pollutants from diffuse or
"nonpoint" sources.

       Cleaner, safer water  has  renewed  recreational, ecological,  and economic interests in
communities across the nation.  The recreation, tourism, and travel industry is one of the largest
employers in  the nation,  and a significant  portion  of  recreational  spending  comes from
swimming, boating, sport fishing,  and hunting.2  Each year, more than 180 million people visit
the shore for recreation.3  In  2001, sportspersons spent a total of $70 billion- $35.6 billion on
fishing, $20.6 billion  on hunting, and $13.8 million on items used for both hunting  and fishing.
Wildlife watchers spent an additional  $38.4 billion on their activities around the home and on
trips away from home.4 The  commercial fishing industry, which also requires clean water and
healthy wetlands, contributed  $28.6 billion to the economy in 2001. The Cuyahoga River, which
once caught fire,  is now busy with  boats  and harbor businesses that generate  substantial
revenue for the City of Cleveland.  The Wllamette River in Oregon has been restored to provide
swimming, fishing, and water sports.   Even Lake  Erie, once  infamous for its dead fish,  now
supports a $600 million per year fishing industry.5

       Although we have made much progress and this progress has had important economic
as well as human health and  environmental benefits, there is still work to be done to realize the
vision of clean  rivers, lakes, streams and coastal areas and safe water to drink. In Fiscal Year
2006,  EPA  will  work with States  and  Tribes  to  continue accomplishing   measurable
improvements in the safety of the nation's drinking  water and in the condition  of rivers,  lakes
and  coastal waters.    This Overview summarizes key environmental and  public health goals
and  describes the general  strategies  EPA  proposes to implement to accomplish  these  goals.
Wth the help of States, Tribes and other partners,  EPA expects to make significant progress
toward protecting human health and improving water quality by 2008, including -

       Water Safe  to Drink: Increase the rate of compliance with drinking water standards
       from 93% to 95%;

   •   Fish and Shellfish  Safe to Eat: Reduce  the percentage of the water miles/acres
       identified by  States or Tribes as having fish consumption  advisories in  2002  where
       increased consumption  of safe fish  is  allowed,  (485,205 river miles, 11,277,276  lake
       acres) while  increasing the percentage  of  the  shellfish growing acres monitored by
       states that are approved or conditionally approved for use from 77% to 91%;

       Water Safe for Swimming: Increase  the percentage of  the stream  miles and  lake
       acres identified by States  in 2000 as having water quality unsafe for swimming  where
       water quality  that is restored to allow swimming. (90,000 stream miles, 2.6 million lake
       acres);

   •   Cleaner Water and Healthy Watersheds: Restore  polluted waters so that,  of the
       2,262 major watersheds across the Nation, at least 600 have few remaining problems
       (i.e. at least 80% of assessed waters meet  State water  quality standards (WQS)) and
       show improvement in 200 watersheds; and
2 Travel Industry Association of America. Tourism for America, 11th Edition. Washington, DC: Travel Industry of America.
3 Pew Oceans Commission. 2002. America's Living Oceans Charting a Course for Sea Change. Arlington, VA: Pew Oceans
Commission.
4 U.S. Fish and Wildlife Service. 2002. 2001 National Survey of Fishing, Hunting and Wildlife-Associated Recreation.
Washington, DC: Government Printing Office.
5 United States Environmental Protection Agency Office of Water. 1998. Clean Water Action Plan: Restoring and Protecting
America's Water. Washington, DC: Government Printing Office.


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                                                            Goal 2:  Clean and Safe Water
       Healthy Coastal Waters:  Show steady improvement in seven specific indicators of
       the health of each of the four major coastal ecosystems around the country.

The clean and safe water goals are closely related to goals established in Goal 4 of the Agency
Strategic Plan related to improvements in  wetlands, estuaries, targeted geographic programs
such as the waters of the Mexico Border region, the Great Lakes, the Chesapeake Bay, and the
Gulf of Mexico.  The key strategies that EPA plans to implement in FY 2006 to make progress
toward the public  health and  environmental goals identified in the Strategic Plan are  briefly
described below.

Water Safe to Drink

       For almost 30 years, protecting the Nation's public health through safe drinking water
has been the shared  responsibility  of  EPA, the States,  and over 53,000 community water
systems (CWSs)6  nationwide that supply drinking water to  more than 260  million Americans
(approximately  90% of the U.S.  population).   Within this time span, safe drinking  water
standards have been established and are  being implemented for 91 microbial, chemical, and
radiological contaminants.  Forty-nine States have adopted primary authority for enforcing their
drinking water programs. Additionally, CWS operators are better informed and trained to both
treat contaminants and prevent them from entering the source of their drinking water supplies.

       During 2006, EPA, the States, and CWSs will build on these successes while working
toward the 2008 goal of assuring that 95 percent of the population served by CWSs receives
drinking water that meets all applicable standards.  Collectively, these core areas and other
interrelated elements of the national safe drinking water program form a balanced, integrated
framework that comprises the  multiple barrier approach to protecting public health from unsafe
drinking water.  At the national level, implementation of this approach is expected to result in
significant progress toward the public health goals described  above.  EPA  has  identified key
activities within five core program areas that are  critical to ensuring safe drinking water. The
core program areas are described below:

Drinking Water Standards

       During FY 2006, EPA will continue to assess the need for new or revised drinking water
standards based on  available  data on health effects, occurrence, risks of exposure, analytical
(detection) methods, as well  as  information on  technologies to prevent,  detect, or remove
specific contaminants.  Specifically, EPA will:

   ••   Determine whether to  regulate  at least five unregulated contaminants on the second
       contaminant  candidate list (CCL)  and,  through the  Six-Year  Review  of  existing
       regulations, whether a revision to an existing standard is warranted;
   ••   Continue analysis to prepare the Agency's third CCL;

   ••   Continue the comprehensive Lead and Copper Rule Review that began in 2004;

   ••   Develop revisions to the Total Coliform Rule (TCR); and

       Consider additional protections of drinking water distribution systems.
6 Although the Safe Drinking Water Act applies to 159,796 public water systems nationwide (as of January 2004), which include
schools, hospitals, factories, campgrounds, motels, gas stations, etc. that have their own water system, this implementation plan
focuses only on CWSs. A CWS is a public water system that provides water to the same population year-round. As of January
2004, there were 52,838 CWSs.


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Goal 2: Clean and Safe Water
Drinking Water Implementation

       During FY 2006, EPA will support State efforts to meet existing and new drinking water
standards including the Cryptosporidium7, Disinfection8 (Stage 2 Disinfectants and Disinfection
Byproducts Rule),  and Ground Water Rules.  EPA will be responsible for directly implementing
the early monitoring requirements under these rules. In addition, initial monitoring requirements
under the revised  arsenic rule and revised radionuclides rule will be underway. EPA and the
states will use the following tools to encourage compliance:

   •   Public Water System Supervision (PWSS) Program Grants:  These grants
       provide assistance  to  implement and  enforce  National  Primary  Drinking Water
       Regulations to ensure the safety of the Nation's drinking water resources and to protect
       public health
       Sanitary Surveys:   Sanitary surveys are on-site  reviews of the water sources,
       facilities, equipment, operation, and maintenance of public water systems. All States are
       to be  in compliance with requirements to conduct sanitary surveys at CWSs once every
       three  years starting in 2004.
   •   Data Access, Quality, and Reliability:  EPA  will complete the modernization of the
       Safe  Drinking Water Information System (SDWIS), which serves  as the primary source
       of national  information on compliance with all health-based,  regulatory requirements of
       SDWA.

Promotion of Sustainable Management of Drinking Water Infrastructure

       The Drinking Water State Revolving Loan Fund (DWSRF), established under the Safe
Drinking Water Act, offers low interest  loans to  help public water systems across the nation
make improvements and upgrades  to their water infrastructure, or other activities  that  build
system capacity.  In FY 2006, the DWSRF program will  provide an estimated 600 more loans.
EPA will also work with States to increase the percentage of loan agreements made each year
that return a  system to compliance, estimated  to be 30% of loan agreements in 2002.

Protection of Sources of Drinking Water

       In FY 2006, EPA will work  with States  and water systems to  improve protection of
sources of drinking water in two key areas.

       Voluntary Source Water Protection Strategies: EPA will promote the concepts of
       a multiple barriers approach to drinking water program management and will work with
       States to track, to the extent feasible, the development and implementation of source
       water protection strategies.   EPA  has set a goal of increasing the number of source
       water areas (both surface and ground water) for community water systems that  have
       minimized risk to public health from an estimated baseline of 5%  of all areas in 2002 to
       20% in FY 2006.

   •   Underground Injection Control:  EPA works with States to regulate injection of
       hazardous  substances and  other waste to prevent contamination  of  underground
       sources of drinking water.  In FY 2006,  EPA will continue  to focus on shallow  wells
       (Class V) in source water areas.  EPA and the States will work to assure that all
7 Long Term 2 Enhanced Surface Water Treatment
8 Stage 2 Disinfectants and Disinfection Byproducts Rule
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                                                           Goal 2: Clean and Safe Water
       identified Class V motor vehicle waste disposal wells are closed by 2008.   EPA and
       States will also work to assure that 100 percent of Class I, II,  III and V wells that are
       identified in violation are addressed.

Assurance that Critical Water Infrastructure Is Secure
       In FY 2006, EPA will continue its lead Federal Agency responsibility in supporting States
and water utilities to secure their water infrastructure from terrorist threats and other intentional
harm.   In  addition,  due  to its  new responsibilities  under Homeland  Security  Presidential
Directives 7 and 9, EPA will  support the water sector in implementing protective measures and
in  launching a new and innovative drinking water surveillance and monitoring  program.   The
Agency will also provide  critical  tools, training, and  exercises that will help  utilities detect,
prevent, and respond to threats.

Safe to Eat Fish and Shellfish
       Across the U.S., States and Tribes have issued fish consumption advisories for a range
of  persistent, bioaccumulative contaminants  covering more than 840,000 river miles and14
million lake acres as of 2003.9 The EPA  Strategic Plan calls for improving the quality of water
and sediments to allow increased consumption of fish and shellfish. EPA's national approach to
meeting safe fish and shellfish goals is described below.

Safe Fish
       Most of the current fish consumption advisories issued by states are for mercury, PCBs,
and dioxin.  EPA  is emphasizing strategic partnerships within the Agency to address these
pollutants.   EPA's water program is also addressing remaining controllable sources of fish
exposure to these chemicals. The Agency is:

       developing  mercury fish tissue criteria implementation guidance to ensure new criteria
       are incorporated into  WQS and implemented in National Pollutant Discharge Elimination
       System (NPDES) permits
   •   working  with  states to  improve their  advisory programs  with  particular emphasis on
       periodic re-sampling of previously tested waters that are under advisory
   •   working to identify emerging contaminants to ensure that routes of fish exposure to new,
       emerging contaminants  are  addressed  early,  before they become a  new reason for
       waters coming under advisory


Safe Shellfish
       Success in achieving the shellfish goals relies on implementation of CWA programs that
are focused on  sources causing shellfish acres to be  closed.  Important  new technologies
include pathogen source tracking, new indicators  of  pathogen contamination  and  predictive
correlations between environmental stressors and their effects. Once critical areas and sources
are identified, core program authorities, including expanded monitoring, development of TMDLs,
and revision of discharge permit limits can be applied to improve conditions.

       In addition,  a wide range of clean water programs that apply throughout the country will
generally reduce pathogen levels in key waters.  For example, work to control Combined Sewer
9 United States Environmental Protection Agency Office of Water. Fact Sheet: National Listing of Fish Advisories. EPA-823-F-
04-016. August 2004. Available on the Internet at http://www.epa.gov/waterscience/fish/advisories/factsheet.pdf


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Goal 2:  Clean and Safe Water
Overflows (CSOs), to reduce discharges from Concentrated Animal  Feeding Operations, to
reduce storm water runoff, and to reduce nonpoint pollution will contribute to restoration of
shellfish uses.

       Finally, success in achieving  the shellfish  goal  also depends on the efforts of other
agencies.    For example,  EPA is working  with  the  National  Oceanic  and  Atmospheric
Administration and the Food and Drug Administration to improve data and data management on
contaminated and closed shellfishing areas.

Water Safe for Swimming

       Recreational waters, especially beaches in coastal areas and the Great Lakes, provide
recreational  opportunities for millions of Americans.  Swimming  in some recreational waters,
however, can pose a risk of illness as a result of exposure to microbial pathogens.  In November
2004, EPA established more protective health-based  WQSs for bacteria for those States  and
Territories bordering  Great Lakes  or  ocean waters  that  had not yet adopted  standards in
accordance with the Beaches Environmental Assessment and Coastal Health Act of 2000, an
important step to further protect the quality of the nation's coastal recreation waters.10  For FY
2006, EPA's national strategy for improving the safety of recreational waters will include these
key elements:

Improve Beach Monitoring and Public Notification

       Another  important element of the strategy for improving the safety of recreational waters
is improving monitoring of public beaches and notifying the public of unsafe conditions. EPA is
working with States to implement the  Beaches Environmental Assessment and Coastal Health
Act and requests grant funding of $10 million to States to carry out this work.  EPA expects that
all Tier 1 public  beaches will be monitored and managed under the BEACH Act in  FY 2006 and
that states and  localities will be taking actions where  possible  and  appropriate to address
sources of unsafe conditions that result in the closure of beaches.

Identify Unsafe Recreational Waters and Begin Restoration

       A key component of the strategy to restore waters unsafe for swimming is to identify the
specific waters  that are unsafe and develop plans to accomplish the needed restoration.   An
important part of this work is to maintain strong progress toward development of Total Maximum
Daily Loads (TMDLs) based on the schedules established by States in conjunction with EPA. In
a related effort,  the Agency will better focus compliance  assistance and,  where necessary,
enforcement resources on unsafe recreational waters.  In addition, working with communities
that have frequent wet weather discharges  (which are a major source of pathogens)  to ensure
progress  to reduce  the  frequency of these  discharges  is one of the  Agency's national
enforcement priorities for FY 2005 through 2007.
10 United States Environmental Protection Agency. Federal Register; November 16, 2004; Volume 69, Number 220; pages
67217 - 67243. Water Quality Standards for Coastal and Great Lakes Recreation Waters. Available on the Interenet at
http://www.epa.gov/fedrgstr/EPA-WATER/2004/November/Day-16/w25303.htm


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                                                          Goal 2:  Clean and Safe Water
Reduce Pathogen Levels in Recreational Waters Generally

       In addition to focusing on waters that are unsafe for swimming today, EPA, States and
Tribes will work in FY 2006 to reduce the overall level of pathogens discharged to recreational
waters using three key approaches:

       reduce pollution from CSOs;

       address major sources discharging pathogens under the permit program; and

       improve management of septic systems.

Restore and Improve Water Quality on a Watershed Basis

       A significant investment of the National  Water Program resources is under the CWA,
which directly support efforts to restore and  improve the quality of rivers, lakes, and streams. In
FY 2006, EPA will work with States to make continued progress toward the clean water goals
identified in the Strategic Plan by using a two-part strategy:

       Implement core clean water programs, including innovations that apply programs on a
       watershed basis; and

   •   Accelerate efforts to improve water quality on a watershed basis.

Implement Core Clean Water Programs:

       To protect and improve water quality  on  a  watershed basis  in  FY  2006,  EPA,  in
partnership with States and Tribes,  needs to continue to focus the work on integrating the six
key program areas that form the  foundation of the water program.  Core water program work
includes:

   •   Strengthen  Water Quality Standards:   The top  priority for the criteria  and
       standards program in FY  2006 is the continued  implementation of the Water Quality
       Standards and Criteria Strategy,  developed in cooperation with  States,  Tribes, and the
       public in 2003.  The Standards Strategy prioritizes key  strategic actions  EPA and the
       states need to complete in order to strengthen the WQS program to guide assessment
       and restoration efforts.  This  Strategy calls for EPA to continue  work in developing
       scientific  "criteria  documents" for  key water pollutants,  including  implementation
       protocols and methods.  In addition,  the  Strategy identifies key efforts to strengthen the
       program,  including developing nutrient criteria, adopting biological criteria, approving
       state WQS in a more timely manner,  and providing technical and scientific support to the
       states and Tribes  in conducting Use Attainability Analyses and  developing site-specific
       criteria.  Finally, EPA will work with States and Tribes to ensure the effective operation
       and administration of the standards program.

       Improve Water Quality Monitoring:  Scientifically defensible water quality data and
       information is essential for cleaning up and protecting the Nation's waters. Federal and
       state water quality monitoring and assessment programs,  the underpinnings of all
       aspects of the watershed approach, need strengthening. Information about the condition
       of waterbodies is  critical to sound water quality protection decisions. A top priority for FY
       2006 is to continue to support States in developing monitoring programs consistent with
       national monitoring guidance published in 2003, including State participation in efforts to
       develop statistically valid monitoring networks and State support of the national STORET
       water quality database.
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Goal 2: Clean and Safe Water
   •   Develop Total Maximum Daily Loads (TMDLs) and Related Plans:
       Development of TMDLs for an impaired waterbody is a critical tool for meeting water
       restoration goals.  In FY 2006, EPA will compare States' progress in developing TMDLs
       against the  approved  schedules. The  purpose  is to determine whether states will
       achieve the  goal of being 100 percent on pace each year to meet State schedules or
       straight-line  rates that  ensure that the national policy of TMDL completion within  13
       years of listing is met.

   •   Control Nonpoint Source Pollution on a Watershed Basis:  Polluted runoff from
       nonpoint sources  is the largest single cause of water pollution.  In FY 2006, EPA will
       focus grants to States under Section 319  of the CWA to expand efforts to manage
       nonpoint pollution on a watershed basis through the development and implementation of
       watershed plans.  Special emphasis will be placed on  restoring impaired  waters  on a
       watershed basis.

   •   Strengthen NPDES Permit Program:  The NPDES program requires point sources
       discharging to water bodies to have permits.  In FY 2006, EPA will work with States to
       use the "Permitting for  Environmental  Results Strategy" to address concerns about the
       workload for issuing permits and the health of State NPDES programs.  The Strategy
       focuses limited resources on the most critical environmental problems and addresses
       program  efficiency and integrity, including activities to streamline  permit issuance and
       assessments of State programs and permit quality.

   •   Support Sustainable  Wastewater  Infrastructure:  The Clean  Water  State
       Revolving Funds  (CWSRFs)  provide low-interest  loans to  help finance wastewater
       treatment facilities and other  water  quality projects.   Recognizing the substantial
       remaining need for wastewater  infrastructure, EPA will  continue to provide significant
       annual capitalization to CWSRFs in FY 2006.  Another important approach to  closing
       the gap  between the need for  clean water projects  and available funding is  to use
       sustainable  management systems to  prolong the lives of existing  systems.  EPA will
       work to encourage rate structures that lead to full cost pricing and other conservation
       measures.


Accelerate Watershed Protection

             Strong execution of core CWA programs alone is not sufficient to maintain and
accelerate progress toward cleaner water and accomplish the water quality improvements
called for in the  Strategic Plan.  About a decade ago, EPA embraced the watershed approach,
focusing  on  multi-stakeholder  and   multi-program  efforts  within  hydrologically  defined
boundaries, as  a better way  to address water quality problems.    In FY 2006,  EPA will
accelerate watershed protection by working in  three key areas:

   •   Core  Programs Organized  by  Watershed:   In  addition to  development  of
       watershed based plans, discussed  below,  core  programs  can be implemented  on a
       watershed basis.  Some examples in  practice as a result of innovations developed  by
       State,  EPA Regions,  and others are development of TMDLs and NPDES permits on a
       watershed basis and implementing water quality "trading" programs within a watershed.

   •   Local Watershed Protection Efforts: EPA is developing national tools, training, and
       technical  assistance  that will help  community partnerships to  be more effective at
       improving watershed health. For FY 2006, EPA will expand support for protection of key
       watersheds  by building on the  success of the  Watershed Initiative (now called the
       Targeted Watershed Grants Program - see Goal 4).


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                                                         Goal 2:  Clean and Safe Water
   •  Apply an Adaptive Management Framework:  The best way to achieve progress
      in  improving  and protecting waters  and watersheds  is  by  applying  an adaptive
      management approach to better understand the problems, set challenging but realistic
      goals, and address  opportunities  associated with developing programs  and building
      partnerships at the watershed level.  In FY 2006, EPA will continue to work with  States
      and Tribes to  apply an adaptive management framework to identify the specific  mix of
      watershed tools that best suit local needs and conditions.  Each State and  EPA Region
      will work to define the extent to which implementation of watershed approaches  should
      be accelerated over the coming  years in order to  meet the watershed/waterbody
      restoration and improvement goals for 2008 in the EPA Strategic Plan.

Protect Coastal and Ocean Waters

      Coastal waters are among the most productive ecosystems on Earth, but they are also
among the most threatened ecosystems,  largely  as a result of rapidly increasing growth and
development. About half of the U.S. population now lives in coastal areas and coastal counties
are growing three times faster than  counties elsewhere in the Nation.  The work described here
will be closely coordinated with the  implementation of the National Estuary Program (described
in  Goal 4).    For FY 2006,  EPA's  national strategy for improving the condition of coastal and
ocean waters will include the following key elements:

Reduce Vessel Discharges

      EPA will also focus on enhancing regulation of discharges of pollution from vessels. Key
work for FY 2006 includes developing standards for cruise  ships operating in Alaskan waters;
cooperating with  the Department of Defense to develop discharge standards for certain  armed
forces vessels; and assessing the effectiveness  of current regulations for marine  sanitation
devices.

Manage Dredged Material

      Several hundred million cubic yards of sediment are dredged from waterways,  ports, and
harbors  every year to maintain the Nation's navigation system. All  of this sediment must be
disposed of safely.  EPA and the U.S. Army Corps of Engineers (COE) share responsibility for
regulating how and where the disposal of sediment occurs.  In FY 2006, EPA and COE will
continue  to  focus resources on improving how  disposal  of dredged  material  is  managed,
including evaluating disposal sites,  designating and monitoring the sites. EPA will also  review
and concur on the disposal permits  issued  by COE.

Manage Invasive  Species

      One of the greatest threats to U.S.  waters and ecosystems is the  uncontrolled spread of
invasive species. Invasive species  commonly enter U.S. waters through the discharge of  ballast
water from  ships. In FY 2006, EPA will assist the U.S. Coast Guard in its  efforts to develop
ballast water exchange requirements and discharge standards and is addressing  this issue at
the international level. In addition,  EPA will work to develop improved measures for monitoring
the rate of increase of invasive species.

Address International Activities

      Internationally, our objective is to protect the environmental quality of U.S. coastal and
ocean waters.  U.S.  waters are   subject  to  international  sources of pollution  and  EPA's
international efforts  in this  area   are focused on  the  development and  implementation of


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Goal 2:  Clean and Safe Water
international standards necessary  to  address transboundary sources  of pollution,  pollution
effecting shared ecosystems, and the introduction of non-indigenous species introduced through
maritime shipping.  To reach these ends we are seeking to reduce the successful introduction of
invasive species to U.S. waters through the negotiation of effective international standards
addressing ballast water  discharges,  harmful  anti-foulants, and air  emissions  from ships.   In
addition, we are isolating high-level radioactive wastes in Northwest Russia that threaten the
health of shared natural resources in the Arctic  ecosystem. Achievement of the objective
and strategic targets will enhance U.S. water quality, human health, and help stabilize aquatic
ecosystems in  North America.

Research

       EPA's  drinking water and  water quality  research programs  conduct  leading edge,
problem-driven research to provide a sound scientific foundation for Federal regulatory decision-
making. These efforts will result in strengthened public health and aquatic ecosystem protection
by providing data  methods, models,  assessments, and technologies for EPA program  and
regional offices, as well as state and local authorities.

       The drinking water research program will focus on filling key  data gaps  and developing
analytical  detection  methods  for  measuring the  occurrence of chemical  and  microbial
contaminants on the Contaminant Candidate  List (CCL)  and developing and evaluating cost-
effective treatment technologies for removing  pathogens  from water supplies while minimizing
microbial/disinfection by-product (M/DBP) formation. The water quality  research program will
provide approaches and  methods  the  Agency and its partners need to develop  and apply
criteria  to support designated  uses, tools to diagnose and assess impairment  in  aquatic
systems, and tools to restore and protect aquatic systems.

       In FY 2006, important areas of research emphasis will include:   1) arsenic treatment
technologies for the removal  of arsenic from small community  drinking water systems;  2)
immune response associated with exposures to waterborne pathogens (e.g., Cryptosporidium,
Norwalk virus) and chemicals (e.g.,  arsenic, disinfection byproducts) that may contaminate
drinking water; 3)  habitat alteration;  4) treatment  and contaminant transport and fate from
biosolids; 5) reproductive health effects associated with exposures to DBFs;  and 6)  improved
detection methods for Pharmaceuticals and personal care  products in effluents.

       EPA manages its water-related research  programs  according to the Administration's
Investment Criteria for Research and Development.  The Agency's detailed, externally-reviewed
multi-year plans for its drinking water and water quality research programs describe clear goals
and priorities, and are  periodically updated to reflect changes in science and resources.  As part
of the periodic multi-year  plan revisions, EPA is examining the design of each program to help
identify  its outputs,  customers, transfer  needs,  and  short-, intermediate-,  and long-term
outcomes.  Beginning in FY 2005, EPA is implementing regular evaluations by independent and
external panels that provide prospective and retrospective review of program relevance, quality,
and performance, including  the program's design and performance goals.  The Agency's Board
of Scientific Counselors, the chosen mechanism  for these reviews, will  examine the drinking
water research program in the  second quarter of FY 2005.  EPA's Science to Achieve Results
(STAR) grants program is also managed according to the Investment Criteria for Research and
Development,  ensuring the quality of  its extramural research through a competitive, peer-
reviewed awards process. The STAR program engages the Nation's best scientists to provide
high quality, innovative research and solutions to protect human health and the environment.
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                                                          Goal 2:  Clean and Safe Water
       In FY 2006, a portion  of EPA's water research will  be accomplished using a  new
approach to applied research  funding  at  EPA.  This  arrangement, based on the existing
collaborative framework between  the media  and research  offices,  is  designed  to ensure
continued relevance and quality of applied research at EPA.  In FY 2006, funds will be provided
to the Office of Water to use a fee-for-service arrangement with the Office of Research and
Development to obtain additional  research focusing on the  Agency's  highest priority water
research needs.
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                                             Goal 3: Land Preservation and Restoration
         Goal 3:  Land Preservation and Restoration
Strategic  Goal:    Preserve  and  restore  the  land by  using  innovative  waste
management practices and cleaning up contaminated properties to reduce risks posed
by releases of harmful substances.
                                     Resource Summary
                                              ($ in 000)
\_x>V
22.3% of Budget
1 - Preserve Land
2 - Restore Land
3 - Enhance Science and Research
Goal 3 Total
FY 2005
President's
Budget
$239,585.1
$1,509,152.0
$57,253.7
$1,805,990.8
FY 2006
President's
Budget
$216,930.9
$1,416,681.8
$57,850.4
$1,691,463.0
Difference
-$22,654.2
-$92,470.2
$596.7
-$114,527.7
Workyears
4,763.6
4,752.2
                                                                          -11.4
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

      Left uncontrolled, hazardous and nonhazardous wastes on the land can migrate to the
air,  groundwater, and surface water, contaminating drinking water supplies, causing acute
illnesses or chronic diseases, and threatening healthy ecosystems in  urban, rural, and suburban
areas. Hazardous substances can kill living organisms in lakes and rivers, destroy vegetation in
contaminated areas, cause major reproductive complications in wildlife, and otherwise limit the
ability of an ecosystem to survive.

      EPA  leads the country's activities to reduce the risks posed by releases  of harmful
substances and by contaminated land. The most effective approach to controlling these risks
incorporates  developing  and  implementing   prevention   programs,  improving   response
capabilities, and maximizing the effectiveness of response and cleanup actions. This approach
will  help to ensure that human health and the environment are protected  and that land  is
returned to beneficial use.

      EPA  will  work to  preserve and restore  the land with  the most  effective  waste
management and cleanup methods available.  EPA will  use a hierarchy  of approaches  to
protect the land:  reducing waste at its source, recycling waste, and managing waste effectively
by preventing spills and  releases of toxic materials, and cleaning up contaminated  properties.
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Goal 3:  Land Preservation and Restoration
The Agency is especially concerned about threats to our most sensitive populations, such as
children, the elderly, and individuals with chronic diseases.

       The  Comprehensive  Environmental  Response,  Compensation,  and  Liability Act
(CERCLA, or Superfund) and the Resource Conservation and Recovery Act (RCRA) provide
the legal authority for most of EPA's work toward this goal. The Agency and its partners use
Superfund authority to clean up uncontrolled or abandoned hazardous waste sites and return
the land to productive use.  Under RCRA, EPA works in partnership with States and Tribes to
address risks associated with leaking underground storage tanks and with the generation and
management of hazardous and non-hazardous wastes at industrial facilities.

       EPA  also uses authorities provided  under the Clean Air Act,  Clean Water Act, and Oil
Pollution Act of 1990 to protect against spills and releases of hazardous materials.  Controlling
the many risks posed by accidental and intentional releases of harmful substances presents a
significant  challenge  to protecting  the  land.    EPA's  approach  integrates   prevention,
preparedness,  and response activities to minimize these risks.  Spill  prevention activities keep
harmful substances from being released to the environment. Improving its readiness to respond
to emergencies through training,  development of clear  authorities, and provision of  proper
equipment will  ensure that EPA is adequately prepared to minimize contamination and harm to
the environment when spills do occur.

       Four themes characterize EPA's land program activities  under Goal  3:  Revitalization;
One  Cleanup Program; Recycling, Waste Minimization and Energy  Recovery; and  Homeland
Security.

•  Revitalization:   EPA  and  its partners  are  restoring  contaminated  land  to make it
   economically productive  or available as green space.   Like the  Agency's  Brownfields
   program  included  under  Goal  4,  these  revitalization efforts complement the Agency's
   traditional cleanup programs, and enable affected communities to  reuse contaminated lands
   in beneficial ways.   EPA  is developing performance measures  to  assess its  success in
   restoring and revitalizing  sites under all its cleanup programs.

•  One  Cleanup  Program:  Through the One  Cleanup Program, the  Agency is looking
   across its programs to bring consistency and enhanced effectiveness to site cleanups.  The
   Agency will work with its partners and stakeholders to enhance coordination, planning, and
   communication across the full range of Federal, State, tribal, and local cleanup programs.
   This effort will improve the pace, efficiency, and effectiveness of site cleanups, as well as
   more fully integrate  land reuse and continued use into cleanup programs. The Agency will
   promote  information technologies  that describe  waste  site cleanup  and  revitalization
   information  in ways that  keep the public  and  stakeholders fully informed.   Finally,  the
   Agency will develop environmental  outcome performance measures that report progress
   among all cleanup  programs,  such as  the  number of acres able to be reused after site
   cleanup. A crucial element to this effort is  a national dialogue, currently underway,  on the
   future of Superfund and other EPA waste cleanup programs.  A crucial element to this effort
   is a national dialogue, currently underway,  on the future of Superfund and  other EPA
   cleanup programs.

•  Recycling, Waste Minimization and Energy Recovery:  EPA's strategy for reducing
   waste  generation and increasing recycling is  based on  (1) establishing  and expanding
   partnerships  with   businesses,  industries,   States,   communities,  and  consumers;  (2)
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                                               Goal 3:  Land Preservation and Restoration
   stimulating infrastructure development, environmentally  responsible behavior by product
   manufacturers, users, and disposers ("product stewardship"), and new technologies; and (3)
   helping businesses, government, institutions, and consumers through education, outreach,
   training, and technical assistance.

•  Homeland Security:  EPA has a major role in reducing the risk to human health and the
   environment posed by accidental or intentional releases of harmful substances and oil.  EPA
   will continue to  improve its capability to effectively prepare for and  respond  to  these
   incidents, working closely  with  other  Federal  agencies within the  National Response
   System.

Controlling Risks to Human Health & the Environment at Contaminated Sites

       EPA  and its partners work  to clean up contaminated  land to levels sufficient to control
risks to human health and the environment and to return the land to productive use.  The
Agency's  cleanup  activities,  some   new  and  some  well-established,   include removing
contaminated  soil,  capping or containing  contamination  in  place, pumping and  treating
groundwater, and bioremediation.

       EPA  uses a variety of  tools to accomplish  cleanups:   permits, enforcement actions,
consent agreements, Federal facility  agreements, and many other  mechanisms.  As part of
EPA's One Cleanup Program Initiative, programs at  all levels of government will work together
to ensure that appropriate cleanup tools are used;  that resources,  activities, and results are
coordinated with partners and stakeholders and communicated to the public effectively; and that
cleanups are protective  and contribute to community revitalization.   The Agency's two  major
cleanup programs, Superfund and RCRA Corrective Action,  now rely on similar human health
and  groundwater protection environmental  indicators.   Through the One  Cleanup  Program
Initiative, EPA is working to coordinate across all of its cleanup programs, while maintaining the
flexibility needed to accommodate differences in program authorities and approaches.

       EPA  fulfills its cleanup and  waste  management responsibilities on tribal lands  by
acknowledging  tribal sovereignty  and recognizing  tribal governments as being the  most
appropriate authorities for setting standards, making policy decisions, and managing programs
consistent with Agency standards and  regulations. EPA and its partners follow four key steps to
accomplish cleanups and control  risks to human health  and the environment:   assessment,
stabilization, selection of appropriate remedies, and implementation of remedies.   EPA will
continue to work with its Federal, state, tribal, and local government partners at each step of the
process to identify facilities and  sites requiring attention and to monitor changes in priorities.

       Through strong policy, leadership, program administration, and a dedicated workforce,
EPA's  cleanup  programs  will  merge sound  science,  cutting-edge technology,  quality
environmental  information, and  stakeholder involvement to protect the Nation from the harmful
effects of contaminated  property.  To accomplish its cleanup goals, the Agency  continues to
forge partnerships and develop  outreach and education strategies.

       To meet its  objective to control the  risks to human health and the environment at
contaminated properties or sites through cleanup, stabilization, or  other action, and to  make
land  available for reuse, EPA intends to achieve the following results in FY 2006:

   •   Make 500 final site-assessment decisions under Superfund;


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Goal 3:  Land Preservation and Restoration
   •   Control all identified unacceptable human exposures from site contamination to at or
   below health-based levels for current land and/or groundwater use conditions at 10 of the
   Superfund human exposure sites;

   •   Control the migration  of contaminated groundwater through engineered  remedies or
   natural processes at 10 of the Superfund groundwater exposure sites;

   •   Select final remedies (cleanup targets) at 20 Superfund sites; and

   •   Complete construction of remedies at 40 Superfund sites.

       EPA's enforcement program is critical to the Agency's ability to cleanup the vast majority
of the nation's worst hazardous waste  sites.  This program secures cleanups from Potentially
Responsible Parties (PRPs) at EPA's priority sites.  The PRPs perform approximately 70% of
the long-term cleanups and EPA uses appropriated dollars to pay for the other 30% of the long-
term cleanups.  If PRPs do not perform a cleanup, and EPA uses appropriated dollars to clean
up sites, the enforcement program recovers EPA's expenditures from the PRPs.

       The Agency has also been  encouraging the establishment and use of Special Accounts
within the Superfund Trust Fund. These accounts segregate site-specific funds obtained from
responsible  parties  that complete  settlement  agreements with EPA.  These  funds can be
provided  as an incentive for other PRPs to perform work they might not be willing to perform or
used by the Agency to fund cleanup.  The result is the Agency can clean up more sites and
allows  the Agency to preserve appropriated Trust Fund dollars for other sites without viable
PRPs.

       This program  pursues an "enforcement first"  policy to ensure that sites for which there
are viable responsible parties are cleaned up by those parties. In tandem with this approach,
various reforms have been implemented to increase fairness, reduce transaction costs,  and
promote economic redevelopment.  Enforcement maximizes PRP participation in cleanups while
promoting fairness in the enforcement process,  and recovering costs from PRPs when EPA
expends  funds.  For more information  regarding EPA's enforcement program, and its various
components, please refer to www.epa.gov/compliance/cleanup/superfund/.

       In  FY  2006, the  Agency  will  negotiate  remedial  design/remedial action  cleanup
agreements and removal agreements at contaminated properties.  Where negotiations fail,  the
Agency will either  take  unilateral  enforcement actions  to  require  PRP cleanup  or  use
appropriated dollars to remediate sites.  When appropriated dollars are used to clean up sites,
the program will recover this money from the PRPs.  The Agency will also continue its  efforts to
establish and use Special Accounts to facilitate clean up.

       By pursuing cost recovery settlements, the program promotes the principle that polluters
should perform or pay for cleanups and preserves the Superfund Trust Fund resources for site
remediation  where there  is  no known  or viable PRP.   The Agency's expenditures will be
recouped through administrative actions, CERCLA section 107  case referrals, and through
settlements reached with the use of alternative dispute resolution.

       EPA's financial  management offices provide a full array of  support services  to  the
Superfund  program  including  managing oversight  billing for Superfund  site  cleanups  and
financial cost recovery.
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                                               Goal 3:  Land Preservation and Restoration
Encouraging Land Revitalization and Reuse

       The goals  of the Land Revitalization Initiative  are to restore and return contaminated,
and potentially contaminated, properties to beneficial use for America's communities; to ensure
that cleanups protect public health and the environment  and that anticipated future  uses are
fully considered in all cleanup decisions; and to remove unintended barriers to the restoration
and beneficial reuse of contaminated properties.  To achieve this mission, EPA has been
working over the last two years to develop a comprehensive approach to revitalization, and has
developed and implemented a wide range of demonstration projects, redevelopment tools,  and
educational efforts.  The Agency is also forming partnerships with States, Tribes, other Federal
agencies,  local governments,  communities,  landowners,  lenders, developers,  and  parties
potentially  responsible for contamination  that can   help  bring  about  reuse  of   formerly
contaminated sites.

       Usable land is a valuable resource.  However,  where contamination presents a real or
perceived threat to human health and the environment, options for future land use at that site
may  be limited.  EPA's cleanup programs have  set a  national goal of returning  formerly
contaminated sites to long-term, sustainable,  and productive use. This goal creates  greater
impetus for  selecting  and  implementing  remedies  that, in  addition  to  providing clear
environmental benefits, will support reasonably anticipated future  land use options and provide
greater economic  and social benefits.

Reducing and Recycling Waste

       Preventing pollution  before  it is generated  and poses  harm is often less  costly than
cleanup and remediation.  Source reduction and recycling programs can increase resource and
energy efficiencies and thereby  reduce  pressures on the environment.  RCRA directs  EPA to
minimize the amount of waste generated and to improve recovery and conservation of materials
through recycling.   To this end,  EPA builds on partnerships with other Federal agencies; state,
tribal,  and  local governments;  business and  industry; and non-governmental organizations.
These  voluntary  partnerships  provide  information sharing,  recognition,  and assistance to
improve practices  in both public and private sectors.

       EPA launched the  Resource Conservation Challenge (RCC) as a major national effort to
find flexible, yet more protective ways to conserve our valuable natural resources through waste
reduction, energy  recovery and recycling.  Through the RCC, EPA challenges every American
to prevent pollution and promote recycling and  reuse, and conserve energy and materials. The
RCC programs foster source reduction and recycling  in  business, industry, and government;
encourage  local adoption of economic incentives that further source reduction and recycling;
reduce hazardous wastes containing  priority chemicals; promote waste-based industries  that
concurrently create jobs;  foster  cost-effective  recycling programs in communities and Tribes;
enhance markets for  recycled  materials  by increasing  procurement  of  recycled-content
products; encourage innovative practices that result in more cost-effective source reduction and
recycling; implement the President's Climate Change  Action Plan;  and provide information to
assess and track progress in reaching national goals.

       Reducing waste generation has clear benefits in combating the ever-growing stream of
municipal solid  waste  (MSW).  MSW includes waste  generated from residences, commercial
establishments, institutions, and  industrial non-process operations. Annual generation of MSW
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Goal 3:  Land Preservation and Restoration
grew steadily from 88 million to 232 million tons between 1960 and 2000.11  In FY 2006, EPA's
municipal solid waste program will implement a set of coordinated strategies, including source
reduction (also called waste prevention), recycling (including composting),  combustion with
energy  recovery, and landfilling. Preference will be  given to  strategies  that  maximize the
diversion of waste from disposal, with source reduction  (including reuse) as the highest priority.

       To meet its objective for reducing materials use through product and process redesign,
and increasing materials and energy recovery from wastes otherwise requiring disposal, EPA
intends to achieve the following results in FY 2006:

   •   Maintain the national average municipal solid waste generation rate at no  more than 4.5
       pounds per person per day; and

   •   Divert 33.4  percent (80  million  tons)  of  municipal  solid waste from landfilling and
       combustion.

       Recognizing that some hazardous wastes cannot be completely eliminated or recycled,
the RCRA program works to reduce exposure to hazardous wastes by maintaining a cradle-to-
grave approach to waste management.  The program's primary focus is to prevent  hazardous
releases from RCRA facilities and reduce emissions from hazardous waste combustion through
a combination of regulations, permits and voluntary  standards. State  program  authorization
provides the  States with primary RCRA implementation  and enforcement authority; reduces
overlapping and dual implementation by the States and EPA; provides the regulated community
with one set of regulations;  reduces overall Federal enforcement presence in the States; and
can provide the opportunity  for some of the  newer,  less-stringent RCRA regulations to  be
implemented  by the States.   To date,  48 States, Guam, and  the District  of  Columbia are
authorized  to issue permits.  Strong state partnerships, the authorization  of  States  for all
portions of the RCRA hazardous waste program, including regulations  that address waste
management issues contained in permits,  and results-oriented state oversight  are important
goals.

       In managing petroleum products properly, EPA works with States, Tribes  and Intertribal
Consortia to prevent, detect, and correct leaks into the environment from federally regulated
underground storage tanks (USTs) containing petroleum and hazardous substances.  Achieving
significant improvements in release prevention and detection requires a sustained emphasis by
both EPA and its  partners. Because States  are  the  primary enforcers of the  LIST program
requirements, EPA  has adopted  a decentralized approach to LIST program implementation by
building and  supporting  strong state and local programs.  Concerns  about the use of fuel
oxygenates (e.g., methyl tertiary butyl ether, or MTBE) in gasoline further underscores EPA's
and the States' emphasis on promoting compliance with all LIST requirements.  EPA provides
technical information, forums for information exchanges  and training opportunities to  States,
Tribes  and Intertribal Consortia to encourage program development and/or implementation  of
the LIST program.
1' US Environmental Protection Agency.  Municipal Solid Waste in the United States: 2001 Facts and Figures, Executive
Summary, U.S. Government Printing Office, Washington, DC, October 2003. Available online at www.epa.gov/epaoswer/non-
hw/muncpl/msw99.htm. Last updated November 5, 2003.



3-6

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                                               Goal 3:  Land Preservation and Restoration
       To meet its objective for reducing releases to the environment by managing hazardous
wastes and  petroleum products properly, EPA intends to achieve the following results in FY
2006:

   •   Prevent releases from RCRA hazardous waste management facilities by increasing the
       number of facilities with permits or other approved controls by 2.5 percent over the FY
       2005 level.  At the end of FY 2004, 86 percent of the facilities had permits  or other
       approved controls;12

   •   Increase the percentage of LIST facilities that are in significant operational compliance
       with  both release detection  and  release  prevention  (spill,  overfill,  and corrosion
       protection) requirements to 66  percent  of  the  estimated universe of approximately
       256,000 facilities; and

   •   Reduce the number of confirmed releases at LIST facilities to 10,000 or fewer. (Between
       FY 1999 and FY 2004, confirmed releases averaged 12,641).

Emergency Preparedness, Response, and Homeland Security

       EPA  will  continue  to improve its  emergency  preparedness  and  response  capability,
particularly in terms of homeland security. EPA plays a major role  in reducing the risks that
accidental and intentional releases of harmful substances and oil pose to human health and the
environment.  Under the multi-agency National Response System (MRS), EPA evaluates and
responds to  thousands of releases annually. EPA's primary role in the MRS is to serve as the
Federal On-Scene Coordinator (OSC) for spills and releases in the inland zone.  As a  result of
MRS efforts,  many major oil spills and releases of hazardous substances have been contained,
minimizing the adverse impacts on human health and the environment.

       An important component of EPA's land  strategy is to prevent oil spills from reaching our
Nation's waters.  Under the Oil Pollution Act, the Agency requires certain facilities (defined in 40
CFR 112.2)  to develop and implement spill prevention, control, and countermeasure  (SPCC)
plans.   Compliance with  these  requirements reduces the number of oil spills  that  reach
navigable waters and prevents detrimental effects on human health and the environment should
a spill occur.

       Each year, EPA personnel assess, respond to, mitigate, and clean up thousands of
releases, whether accidental,  deliberate,  or naturally  occurring.  These incidents range from
small spills  at  chemical  or  oil  facilities to   national  disasters,  such  as hurricanes and
earthquakes, to large-scale terrorist events.

       EPA  will  work to improve its capability to respond effectively to incidents that may
involve harmful chemical, oil, biological,  and radiological substances.  The Agency will explore
improvements in field and  personal protection  equipment and response training  and exercises;
review response  data  provided  in the  "after-action" reports  prepared by EPA  emergency
responders  following a  release;  and  examine "lessons  learned" reports  to  identify  which
activities  work and which need to be improved.  Application of this information and other data
will advance  the Agency's state-of-the-art emergency response operations.
12 Approximately 2,750 hazardous waste management facilities are currently regulated under RCRA. EPA plans to reassess this
universe in FY 2006.
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Goal 3:  Land Preservation and Restoration
       Responding to small and large-scale disasters is one of EPA's traditional responsibilities
supported  by  the OSCs,  the Environmental Response  Team  (ERT),  and  the  National
Decontamination Team (NOT).  The Agency's crucial role  in responding to the World Trade
Center and Pentagon attacks, the decontamination of anthrax and ricin in a U.S. Senate Office
Building,  and the  response to the Columbia shuttle disaster have further defined the nation's
expectations of EPA's emergency response capabilities.

       The FY 2006 President's Budget request includes additional funding to enable EPA to
improve  the  capabilities  of  EPA's  responders through  procurement  of  state-of-the-art
equipment, develop a new Environmental Laboratory Preparedness and Response (ELPR)
program to strengthen such lab capabilities, support readiness for pre-deployments to national
security special events, and develop decontamination protocols.

       In FY 2006, EPA will continue to implement its homeland security plans and procedures
and meet its responsibilities to respond to major hazardous substance, oil, weapons of mass
destruction (WMD)  or  nationally  significant  terrorist incidents.    EPA  will prepare for  the
possibility of simultaneous attacks on  more than  one target and will implement the National
Approach to Response (NAR), which is EPA's internal multi-faceted mechanism to effectively
manage and conduct  responses to  nationally significant events.   The  NOT will improve  its
specialized decontamination capabilities to address chemical and biological and/or radiological
agents in both environmental  and building contamination  situations.  The ERT will provide
training and specialized scientific, technical, and health and safety support to EPA's responders.

       To meet its objective to reduce and control the risks posed by accidental or intentional
releases of harmful substances by improving our Nation's capability  to prepare for and respond
more effectively to these emergencies, EPA intends to achieve the following results in FY 2006:

   •   Improve the Agency's  emergency preparedness by achieving  and  maintaining  the
       capability  to respond to simultaneous large-scale  emergencies  and  by improving
       response readiness by 10 percent from the previous year  using the core emergency
       response criteria;

   •   Respond to 350 hazardous substance releases and 300 oil spills; and

   •   Inspect or  conduct exercises or drills at approximately 100 oil storage facilities required
       to have Facility Response Plans.

Enhancing Science and Research to  Restore and Preserve Land

       The FY 2006 land research  program  supports the  Agency's  objective of reducing or
controlling potential risks to human health  and the environment at contaminated waste sites by
accelerating scientifically-defensible and cost-effective decisions for cleanup at complex sites,
mining sites, marine  spills, and Brownfields  in accordance with CERCLA.  These  research
efforts  will improve the  range and  scientific foundation  for contaminated sediment remedy
selection  options  by improving risk characterization and site characterization,  and increasing
understanding  of  different remedial  options,  in order to  optimize  environmental and human
health protection and the cost-effectiveness of remedial decisions.
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                                               Goal 3: Land Preservation and Restoration
       In  FY 2006, a  portion  of  EPA's land preservation and  restoration research will be
accomplished using a new approach to applied research funding at EPA.  This arrangement,
based  on the  existing  collaborative framework between the  media and  research offices,  is
designed to ensure continued relevance and quality of applied research at EPA.  In FY 2006,
funds will be provided to the Office of Solid Waste and Emergency Response to use a fee-for-
service arrangement with the Office of Research and Development to obtain additional  research
focusing on the Agency's highest priority land preservation and restoration research needs.

       Funding for the Superfund Innovative Technology Evaluation (SITE) program will be
reduced,  existing contracts will  be  closed out, and the program will  be terminated in FY 2006.
As the Superfund program has matured,  innovative approaches evaluated through the SITE
program and other mechanisms have become standard tools for remediation. Additionally, the
business of environmental remediation has matured and the  private sector now offers many
more opportunities for vendors to promote their products and systems.

       Multimedia decision-making and waste management constitute the two major areas  of
research  under RCRA in  FY 2006, as  the Agency works toward preventing releases through
proper facility  management.  Multimedia research will  focus  on  resource  conservation  (e.g.,
electronic waste  recycling and waste-derived  products),  corrective  action, and  multimedia
modeling.  Research will enhance sustainability by providing technical reports and  technical
support  on  methods  to  improve  industrial  and  municipal  waste management. Waste
management research  continues to  advance multimedia modeling  and uncertainty/sensitivity
analyses methodologies that support core RCRA program needs as well  as emerging  RCRA
resource  conservation needs.

       EPA  manages its research to  support  land  preservation and remediation programs
according to the Administration's  Investment Criteria for  Research and  Development.   The
Agency's detailed, externally-reviewed multi-year plans for its Contaminated Sites and RCRA-
related research programs describe clear goals and priorities, and are periodically  updated  to
reflect changes in  science and resources. As part of the periodic multi-year plan revisions,  EPA
is examining the design of each program to help identify its outputs,  customers, transfer needs,
and short-, intermediate-, and long-term outcomes.  Beginning in FY 2005, EPA is implementing
regular  evaluations  by independent  and  external panels  that  provide prospective  and
retrospective review of program relevance, quality, and  performance, including the program's
design and performance  goals.   The  Agency's Board  of Scientific Counselors, the chosen
mechanism for these  reviews, will  examine  the land protection  and  restoration  research
program in 2005.
                                                                                  3-9

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                                         Goal 4:  Healthy Communities and Ecosystems
      Goal 4:  Healthy Communities and Ecosystems

StrdtegJC Goa/:  Protect, sustain, or restore the health of people, communities, and
ecosystems using integrated and comprehensive approaches and partnerships.
                                      Resource Summary
                                               ($ in 000)
v ^
^ 	 '
17.7% of Budget
1 - Chemical, Organism, and Pesticide
Risks
2 - Communities
3 - Ecosystems
4 - Enhance Science and Research
Goal 4 Total
FY 2005
President's
Budget

$366,759.0
$324,792.2
$205,463.2
$394,993.3
$1,292,007.7
FY2006
President's
Budget

$392,044.8
$325,437.0
$203,902.9
$414,863.1
$1,336,247.8

Difference

$25,285.8
$644.8
-$1,560.2
$19,869.8
$44,240.1
Workyears
3,844.8
3,834.7
                                                                         -10.1
* Agency authorized FTE levels are being aligned with actual utilization.  See workforce section in the
overview.

      To promote healthy communities and ecosystems, EPA must bring together a variety of
programs, tools, approaches and resources. The support of a multitude of stakeholders, along
with strong  partnerships with Federal, state, tribal and local governments, are necessary to
achieve  the Agency's  goal of  protecting,  sustaining or restoring healthy communities  and
ecosystems.

      A key  component of this goal  is protecting human  health  and  the  environment by
identifying, assessing, and reducing the potential risks presented by the thousands of chemicals
and   pesticides  on   which  our  society  and   economy   have  come   to  depend.
EPA must also address  the emerging  challenges  posed by a growing array  of biological
organisms—naturally occurring and, increasingly, genetically engineered—that are being used
in industrial and agricultural processes.

      Biological agents are potential weapons that could be exploited by terrorists against the
United States. EPA's pesticides antimicrobial program has been very responsive to addressing
this threat.  Antimicrobials play an important role in public health and safety.  EPA is conducting
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Goal 4:  Healthy Communities and Ecosystems
comprehensive scientific assessments and  developing  test protocols  to  determine  product
safety  and  efficacy  of  products  used against chemical  and biological weapons of  mass
destruction, and registering products as necessary.

       EPA  programs under this Goal have many indirect benefits.  For example, each year the
Toxic Substances  Control Act (TSCA) New  Chemicals program  reviews  and manages  the
potential risks  from approximately 1,800 new chemicals and 40 products of biotechnology that
enter the marketplace.  This new chemical review process not only protects  the public from the
possible immediate threats of harmful chemicals,  but it has also contributed to changing  the
behavior of the chemical industry, making industry more aware and responsible for the impact
these chemicals have on human health and the environment.

       Americans come into daily contact with any number of chemicals that entered the market
before  the New Chemicals Program was established in 1978, yet relatively little is known  about
many of their  potential impacts.  Obtaining basic  hazard testing information on large volume
chemicals is one focus of EPA's work in the  Existing Chemicals program. The voluntary High
Production Volume program challenges  industry to develop chemical hazard data critical to
enabling EPA, States, Tribes, and the public to screen chemicals already in commerce for any
risks they may be posing. EPA's responsibility for managing the known risks of other chemicals
centers on reducing exposure through proper handling or disposal.

       The Acute  Exposure Guideline Levels (AEGLs) Program was  designed by  EPA to
provide scientifically credible data to directly  support chemical emergency planning, response,
and  prevention programs mandated  by Congress.  Emergency workers and first responders
addressing accidental or intentional chemical releases need to know how dangerous a chemical
contaminant may be to breathe or touch, and  how long it may remain dangerous. The program
develops short-term exposure limits applicable to the general population for a wide range of
extremely hazardous substances (approximately 400).

       This  goal also focuses  on geographic areas with human  and ecological communities
most at risk.  For example, the Mexican Border  is an  area facing  unique  environmental
challenges.  At the  Mexican Border, EPA addresses local  pollution and infrastructure needs that
are priorities for the Mexican and the U.S. governments under the Border 2012 agreement.

       As the population in coastal regions grows, the challenges to preserve and protect these
important ecosystems increase.  Through the National  Estuary Program, coastal areas have
proved  valuable grounds  for combining  innovative and community-based approaches with
national guidelines  and interagency coordination to achieve results.

       Wetlands are among the most productive ecosystems in the world, comparable to rain
forests and coral reefs. Yet the nation loses  an estimated 58,000 acres per year, and  existing
wetlands  may be  degraded by  excessive   sedimentation,  nutrient enrichment,  and  other
factors.13
13 Dahl, I.E. 1990. Status and Trends of Wetlands in the Conterminous United States, 1986 to 1997. Washington, DC: U.S.
Department of the Interior, U.S. Fish and Wildlife Service. Available online at:
http://wetlands.fws.gov/bha/SandT/SandTReport.html: Report to Congress on the Status and Trends of Wetlands in the
Conterminous United States, 1986 to 1997.
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                                            Goal 4: Healthy Communities and Ecosystems
       In 2001 the Supreme Court determined that some isolated waters and wetlands are not
regulated under the Clean Water Act.  Many waters with important aquatic values may no longer
be covered by CWA Section 404 protections. However, in FY 2006, EPA and the Army Corps
of Engineers (Corps) will continue to strive towards the Administration's commitment of "no net
loss" of wetlands in the United States.

       Large water bodies like the Gulf of Mexico, the Great Lakes, and the Chesapeake Bay
are surrounded by industrial  and other development and have been exposed to substantial
pollution over many years at levels higher than current environmental  standards permit.  As a
result,  the volume of pollutants  in  these water bodies has exceeded their natural ability to
restore balance.  Working with stakeholders, EPA has established special programs to protect
and restore these unique resources by addressing the vulnerabilities for each.

       EPA's Brownfields Initiative to clean up  brownfields and return them to use funds pilot
programs and other research efforts; clarifies liability issues; enters into Federal, state and local
partnerships;  conducts outreach activities;  and creates  related  job  training and workforce
development programs.

       The Agency will continue to support the National Environmental Justice Advisory Council
(NEJAC) which provides the Agency significant input from interested stakeholders  such  as
community-based organizations, business and industry, academic  institutions,  State, tribal and
local governments, non-governmental organizations and environmental groups.

       EPA also has a responsibility to ensure that efforts to reduce potential environmental
risks are based on the best  available scientific information. Strong science allows identification
of the most important sources of risk to human  health and the environment as well as the best
means to detect, abate, and avoid  possible environmental problems,  and thereby guides our
priorities, policies, and deployment of resources.  Under Goal 4, EPA will conduct research in
many areas, including emerging areas such as  biotechnology and  computational toxicology, to
help develop better understandings and characterizations of positive environmental outcomes
related to healthy communities and ecosystems.

       In coordination with our state and tribal co-regulators and co-implementers and with the
support of  industry,  environmental  groups,  and other stakeholders, EPA will  use multiple
approaches to  address risks associated with chemicals and pesticides.  Improving communities'
ability to address local problems is a critical part  of our efforts to reduce risk.

Pesticides and Chemicals Programs

       EPA will  continue using  both  voluntary and regulatory approaches to address  risks
associated with the use of pesticides in the home, work environment and agricultural  settings.
These approaches include  identifying and assessing potential risks from  pesticides, setting
priorities for addressing these risks, strategizing  for reducing these risks, and promoting
innovative   and   alternative   measures   of   pest  control,    such   as   environmental
stewardship/integrated pest  management (IPM).  In addition, EPA will strengthen education and
training of  workers and the  public and  promote the registration and  use  of reduced risk
pesticides.
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Goal 4:  Healthy Communities and Ecosystems
       EPA will make progress towards its objective of protecting human health, communities
and ecosystems from pesticide  use by focusing on  meeting our Food Quality Protection Act
(FQPA) statutory mandate of completing the assessment of all existing tolerances (9,721). This
process includes the issuance of all food use Reregistration Eligibility Decisions (REDs).  These
regulatory actions  will  ensure that pesticides  on the market  and the associated  tolerance
residues remain safe for the public and the  environment.   EPA will also  continue identifying
candidates for countering potential bioterrorist use of pesticides and biopesticides.


               ^TOLERANCE REASSESSMENT SUMMARY BREAKDOWN

                           Tolerances          Total
                            to be        Reassessed as      Tolerances    Percentage
      Category              Reassessed        of 7/20/04       Remaining    Reassessed


   Organophosphates           1691            1131            560          66.88%

   Carbamates                 545             305             240          55.96%

   Organochlorine              253             253              0            100%

   Carcinogen                 2008            1329            679          66.19%

   High Hazard Inert             532           60.00%

   Other                     5219            3723            1496          71.33%

   TOTALS                   9721            6744            2977          69.37%

             *EPA's Tolerance Index. Tolerance Tracking Systems and Tolerance Reassessment Database.


       EPA plans to emphasize the continuation and further development  of programs  for the
review of new and  existing chemicals.  On the new chemicals front, the Agency will continue to
carry out its mandate to review potential risks from newly manufactured or  imported chemicals
before they are introduced  to commerce.  EPA's "Sustainable  Futures" program encourages
chemical  manufacturers  to apply  pollution  prevention techniques in the  design of new
chemicals, so that  chemicals entering the new chemical review process will be  less hazardous
and less risky.

       In addressing chemicals that have entered the market before the inception of the new
chemical review program, EPA will continue to implement its  voluntary High Production Volume
(HPV)  Chemicals  Program,  which challenges  industry to develop  chemical hazard data  on
existing chemicals  that  it chooses to "sponsor." This will  enable EPA and the public to  screen
many chemicals already in commerce for risks they may be posing.  Complementing HPV is the
Voluntary Children's Chemical Evaluation Program (VCCEP), a high-priority screening program
targeting existing chemicals believed to have particular impact on children's health.  We will
make special efforts to assess the potential risks of newly developed substitutes for a chemical
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                                            Goal 4: Healthy Communities and Ecosystems
category of emerging concern: brominated flame retardants.   EPA is working to  engage
stakeholders in a cooperative process to evaluate the efficacy and potential risks of developing
flame retardants.

       The Agency will  continue to manage  its programs to address specific chemicals of
concern, including lead, mineral fibers, dioxin,  mercury, polychlorinated biphenyls  (PCBs), and
persistent, bioaccumulative and toxic (PBT) chemicals generally.   The lead program will shift its
focus from  oversight and rule development at the Headquarters  level to regional oversight of
activities supported through grant  funding  -- such  as state-implemented lead-based paint
training and  certification  programs  and  efforts  targeted  to  high-risk  areas  ~  and  on
implementation  of  a few of the highest  priority regulatory  and outreach efforts.  EPA  will
continue to implement a national voluntary  phase-out of PCB  Large Capacitors and PCB
Transformers,  focusing  on major Federal and  private owners and  operators  of electrical
equipment.   Priorities include the identification of opportunities for  replacement of older, less
efficient equipment with newer, more efficient equipment and the accelerated phase-out of PCB-
containing  electrical  equipment as supplemental environmental projects.  The  Agency  will
continue to work with the Maritime Administration (MARAD)  in order to dispose of its fleet of
obsolete ships containing equipment that uses PCBs.

       The Agency will continue Homeland  Security activities  focused on  identifying and
reviewing proposed pesticides for use against pathogens of greatest  concern for crops, animals,
and humans in advance of their potential introduction, including testing of antimicrobial products
to determine which are effective against human pathogens. If the  safety concerns are met, and
the product is effective (in the case of antimicrobials), EPA  can approve use of  the product.
Close cooperation with other Federal agencies and industry will continue in order to carry out
these activities  which directly respond to requirements in  Homeland  Security  Presidential
Directives 9 and 10.  Additionally, EPA's Acute  Exposure Guideline Levels (AEGLs) program
will continue to develop proposed AEGL values.

       The Toxic Release Inventory (TRI) program provides the public with information on the
releases and other waste management of toxic chemicals. Two laws, Section 313 of the
Emergency Planning and Community Right-To-Know Act (EPCRA) and Section 6607 of the
Pollution Prevention Act (PPA), mandate that EPA annually collect information on listed toxic
chemicals from certain industries and make the information available to the public through
various means, including a publicly accessible national database.

Mexico Border Water Quality

       The United  States  and Mexico have a long-standing  commitment  to  protect  the
environment and public  health in the  U.S.-Mexico Border Region.  The U.S.-Mexico  Border
2012 Program, a joint effort between the U.S. and Mexican governments, will work with the 10
border States and with border communities to  improve the region's  environmental  health using
the Border 2012 Plan.  Under this Plan, EPA expects to take several  key actions to improve
water quality and protect public health.

       Core  Program  Implementation:  EPA will  continue to  implement core programs
       under the Clean Water Act (CWA) and related authorities, ranging from discharge permit
       issuance, to watershed restoration, to nonpoint pollution control.
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Goal 4:  Healthy Communities and Ecosystems
       Wastewater Treatment Financing: Federal, state, and local institutions participate
       in border area efforts to improve water quality through the construction of infrastructure
       and development  of pretreatment programs.  Specifically, Mexico's National  Water
       Commission  (CNA) and EPA  provide funding  and  technical  assistance for project
       planning and construction.

   •   Build  Partnerships:   Since 1995, the  NAFTA-created  institutions,  the  Border
       Environment Cooperation Commission (BECC) and the North American Development
       Bank (NADBank), have had the primary role in working with communities to develop and
       construct infrastructure  projects.  In FY  2006,  EPA  will establish  a workgroup with
       Mexico to develop a workplan to define specific steps needed to accomplish the water
       quality improvement goals expressed in the Border 2012 Plan.

Protection and Restoration of Ecosystems

       The National Estuary Program (NEP) is a key tool for restoring and protecting the quality
of the nation's  ecosystems. The NEP provides inclusive, community-based planning and action
at the watershed level and has an established record  of improvements to ecosystem conditions.

       A  top  priority in  FY  2006  is  to  continue  supporting  the efforts to  implement
Comprehensive Conservation  and  Management  Plans in all 28  NEP estuaries.  A critical
measure of success is the number of priority actions  in these plans that have been initiated and
the number that have been completed.  EPA created a baseline to track priority actions in 2004
and now tracks implementation of actions.

       The health of the Nation's estuarine ecosystems also depends  on the maintenance of
high-quality  habitat.   Diminished and degraded  habitats are less  able to  support healthy
populations of wildlife and marine organisms and perform the economic, environmental,  and
aesthetic functions on which coastal populations depend for their livelihood.  A key success has
been the restoration of over 500,000 acres of habitat over the past decade.  For 2006, EPA has
set a  goal of protecting or restoring an additional 25,000  acres of habitat within the 28 study
areas.

       Finally,  EPA will work with National Estuary Programs in FY 2006 to improve information
about conditions in the estuaries.   Starting in FY 2005, each program will  have indicators in
place  to track environmental trends in the estuary.  In FY 2006,  EPA will develop and issue a
baseline report on the condition of NEP estuaries modeled after the National Coastal Condition
Report.

Wetlands Protection

Wetlands are among our Nation's most critical and productive natural  resources. They provide
a variety of benefits, such as  water quality improvements, flood protection,  shoreline erosion
control, and ground water exchange. Wetlands are the primary habitat for fish, waterfowl,  and
wildlife, and as such, provide numerous opportunities for education, recreation, and research.
EPA recognizes that the  challenges the Nation  faces to conserve our wetland  heritage are
daunting and that  many partners must work together for this effort to succeed.  EPA's strategy
for meeting wetland goals in FY 2006 is described below.
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                                          Goal 4:  Healthy Communities and Ecosystems
      Net Gain  Goal:   Meeting the "net  gain"  element of the  wetland goal will be
      accomplished by other Federal programs (Farm Bill agriculture incentive programs and
      wetlands acquisition and restoration programs, including those administered by Fish and
      Wildlife Service) and non-Federal programs. EPA contributes to achieving no overall net
      loss through EPA's regulatory programs,  including the Clean Water Act Section 404/401
      permit review, compliance and enforcement, and other programs.  EPA will also support
      States, Tribes, and others to protect and  restore wetlands and build capacity to increase
      wetland functionality.  In implementing these responsibilities, each Region will identify
      watersheds where wetlands and other aquatic resources are most at risk, including from
      cumulative impacts. EPA will improve levels of protection  through actions that include:
      working with and integrating  wetlands  protection into other EPA programs such as
      Section 319, State Revolving  Fund, National Estuary Program; working with the Corps of
      Engineers (COE) and/or States  on  permitting  and mitigation  compliance;  providing
      grants and technical assistance to state, tribal or local organizations;  and  developing
      information, education and outreach tools.

   •  No  Net Loss:   Building  upon the  analysis  of existing  mitigation data  base
      systems, the Corps,  EPA,  USDA,  DOI,  and NOAA  will  establish  a  shared
      mitigation database by FY 2005. Utilizing the shared database, the Agencies will
      provide an annual public report card on compensatory mitigation to complement
      reporting of other wetlands programs.   To help ensure no net loss of aquatic
      resources the Corps has initiated six new  performance measures designed  to
      improve permitting and mitigation  compliance, including compliance inspections
      and audits,  and resolution of enforcement actions.

      EPA will work with the COE to ensure application of the 404(b)(1) guidelines,
which require that discharges into waters of the U.S. be avoided and minimized to the
extent practicable. Each Region will also  identify opportunities to partner with the Corps
in meeting performance measures for compensatory mitigation for unavoidable impacts.

Targeted Watershed Grant Program

      The Targeted Watersheds Grant Program,  now in  its  third  year,  is designed  to
encourage successful community-based  approaches and management  techniques  to protect
and restore the  nation's waters. This a competitive grant  program predicated on the following
fundamental principles of environmental improvement: collaboration, new technologies, market
incentives, and results-oriented strategies. The  organizations chosen to  receive funds use the
resources for a variety of restoration, protection  and trading projects. Money is used to stabilize
stream banks,  demonstrate  innovative  nutrient  management schemes, establish  pollutant
credits, and work with local governments and private citizens to promote sustainable practices
and strategies.  Grants  range  from  $300,000 to $1,300,000, with  an  additional 25 percent
leveraged from other sources.

Protecting the Great Lakes

      As the largest freshwater system on the  face of the earth (containing 20 percent of the
earth's surface water and 90 percent of the surface water in the United States), the Great Lakes
ecosystem holds the key to the quality of life and economic prosperity  for tens of millions of
                                                                                 4-7

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Goal 4:  Healthy Communities and Ecosystems
people. While significant progress has been made to restore the environmental health of the
Great Lakes, work remains.

      Over the upcoming year,  the local, state, tribal, and  Federal Great Lakes  Regional
Collaboration will work together to develop a strategy to address Great Lakes water quality. The
Regional  Collaboration was called for as part of the  President's  May 2004 Executive Order,
directing EPA to establish the great Lakes Task force to coordinate the Federal effort to improve
water quality in  the Great Lakes.  The strategy will focus on outcomes like cleaner water and
sustainable fisheries, and targeting measurable results and build upon priority setting work done
by the eight Great Lakes governors and by partners to the Great Lakes Strategy 2002: A  Plan
for the New Millennium.   Objectives of strategy include cleaning up and de-listing at least 10
Areas of  Concern by 2010, a 25 percent reduction  in  PCB concentrations in  lake trout and
walleye, and restoration or enhancement  of 100,000 acres of wetlands in the Great Lakes
Basin. In FY 2006, EPA will give special attention to work in the following three areas:

   •  Core Clean  Water Programs:   While the Great Lakes face a range of unique
      pollution  problems (extensive sediment contamination) they also face problem common
      to most other waterbodies around the country.  Core clean water programs must be fully
      and effectively implemented throughout  the Great Lakes Basin.  EPA will  focus on
      assuring  that by 2008, 100  percent of the major, permitted discharges to the  Lakes or
      major tributaries have permits that reflect the most current standards.   In addition,  EPA
      will  focus  on  assuring that 95 percent of permits  are  consistent  with the national
      Combined Sewer Overflow Policy.

      Great Lakes Legacy Act: Restoration of contaminated sediments around the Great
      Lakes is  a critical step toward  meeting water quality  goals.  In FY 2006,  EPA will
      expedite  work  to  address  contaminated sediment.    In FY 2006 EPA anticipates
      remediation efforts  will result in cleanup of  over one-quarter million  cubic  yards of
      contaminated sediments, with cleanup beginning at approximately 6 sites.

   •  Implementing Expanded Beach Safety Programs.  In FY 2006,  EPA  will work
      with States to both improve the state water quality standards for bacteria in recreational
      waters and to implement the BEACH Act (see Goal 2).   EPA has a goal that 100percent
      of high priority beaches around the  Great Lakes are served by water quality monitoring
      and public notification programs consistent with the BEACH Act guidance.

Chesapeake  Bay Protection and Restoration

      The Chesapeake Bay is the largest estuary in the United States and a water resource of
tremendous ecological and economic importance.  For over twenty years, efforts to protect and
restore the Bay have been led by the Chesapeake Bay Executive Council—Bay area governors,
the mayor of the District of Columbia; the EPA Administrator, and the chair of the Chesapeake
Bay Commission, a  tri-state  legislative  body.    This unique regional partnership  has defined
environmental improvements  needed  in  the  Bay and developed  a  strategy  that blends
regulatory and voluntary processes.

      One of the key measures of success in achieving  improved Chesapeake Bay water
quality will  be the restoration of submerged aquatic vegetation.   To achieve improved water
quality needed  to restore  submerged  aquatic vegetation, the  Chesapeake  Bay  Program
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                                            Goal 4: Healthy Communities and Ecosystems
partners committed to reducing nutrient and sediment pollution loads sufficiently to remove the
Bay and the tidal portions of its tributaries from the list of impaired waters.  EPA and Bay area
States have agreed to an approach to meeting restoration goals  for Chesapeake Bay including
the following key actions for FY 2006:

   •  Implement  Pollution Reduction Strategies:   States have  developed pollution
      reduction strategies for each of the watersheds within the  larger Bay watershed.  These
      strategies define specific,  localized approaches to meeting  new state water  quality
      standards and to restoring  impaired waters by the year 2010. Although each strategy
      will describe a series of steps specifically designed for that watershed, most strategies
      will address the need for advanced treatment at sewage treatment plants, the need to
      reduce nutrients and sediments from farms, and the need to expand streamside buffers.

   •  Core Programs in the Bay Area:  In addition to new watershed-specific  strategies,
      EPA and state partners will continue to implement core clean water programs that are
      essential to maintaining past progress in improving the health of the Bay.  For example,
      Bay area States will continue to provide low interest loans for the financing  of sewage
      treatment systems and will continue to implement comprehensive,  statewide programs
      for reducing nonpoint sources of  pollution.  The discharge  permit program will provide
      controls  on discharges from storm water facilities, confined animal feeding operations,
      sewage treatment plans and combined sewer overflows.


Protecting the Gulf of Mexico

        The Gulf of Mexico basin  has been called "America's Watershed." Its U.S. coastline is
1,630 miles,  it is fed by thirty-three major rivers, and  it receives  drainage from 31  States in
addition to a similar drainage area from Mexico. One sixth of  the U.S. population now lives in
Gulf Coast states. For FY 2006, EPA has worked with  States  and other partners to  define key
activities to support attainment of environmental and health goals. These activities fall into three
categories:

   •  Core Clean  Water  Programs:   The  Clean Water Act provides authority and
      resources that are essential to protecting water  quality  in the Gulf of Mexico  and in the
      larger Mississippi River Basin that contributes  pollution,  especially oxygen demanding
      nutrients, to the Gulf.   EPA will  work with States to assure the continued effective
      implementation  of  core clean  water  programs, ranging from  discharge permits,  to
      nonpoint pollution controls, to wastewater treatment,  to protection of wetlands.

   •  Protecting and Restoring the  Gulf of Mexico:  A central pillar of the strategy to
      restore the health of the Gulf is restoration of water quality and habitat in  12  priority
      coastal watersheds.  These 12  watersheds include  354 of the  impaired  segments
      identified by  States  around the Gulf and will receive  targeted technical  and financial
      assistance to  restore impaired waters.   The 2008 goal  is to fully attain water  quality
      standards in at least 20percent of these segments.

      Reducing  the Size  of the Hypoxic Zone: Any  strategy to  improve the  overall
      health of the entire Gulf of Mexico  must include a focused effort to reduce the  size of the
      zone of hypoxic conditions (i.e. low oxygen in the water) in the  northern Gulf.  Actions to
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Goal 4:  Healthy Communities and Ecosystems
       address this problem will need to focus on both localized addition of pollution to the Gulf
       and on controlling the loadings of nutrients from the Mississippi River.

              In working to accomplish this goal, EPA and other Federal agencies will continue
       implementation of core clean water programs and partnerships among agencies; specific
       efforts in FY 2006 will include:

              Work with States to select a project watershed in each of the States in the Lower
             Mississippi River Basin to reduce nitrogen loadings to the lower Mississippi River;

             Work with  States  and  other  partners  to  identify "100 Highest Opportunity
             Watersheds" where nitrogen reduction strategies will be implemented;

             Implement the "Friends of the Gulf" award program  to recognize corporations,
             organizations, or individuals  that have taken effective,  voluntary measures to
             reduce nutrient inputs; and
             Work with the private sector to support Industry Led Solutions for reducing both
             point and nonpoint sources.


Solid Waste and Emergency Response

       To reduce  or eliminate the potential  risks associated with chemical releases,  EPA must
first identify and understand potential chemical  risks and releases.  EPA will use information
generated by  the Risk Management Program  (RMP), Emergency Planning and Community
Right-to-Know Act (EPCRA^  and  the Spill Prevention Control and Countermeasure (SPCC)
program to supplement data on potential chemical risks and to develop voluntary initiatives and
activities to reduce risk at high-risk facilities, priority industry sectors, and/or specific geographic
areas.  To meet its objective  of protecting  human  health, communities, and ecosystems from
chemical  releases through  facility risk reduction  efforts and  building community infrastructures,
EPA, working with state and local implementing  agencies, intends to complete 100 RMP audits
in FY 2006.

       EPA will collect information from the  local emergency planning committees (LEPCs)
during  FYs 2004-2006 to determine the extent to which they have incorporated appropriate
facility  risk information  into  their emergency  preparedness  and community  right-to-know
programs.  This information will serve as a baseline from which EPA will track progress toward
this strategic  goal.  EPA will  also continue an  initiative to improve and enhance emergency
preparedness and prevention in tribal communities.

Brown fields

       Economic changes over several decades have left thousands of communities  with these
contaminated properties and abandoned sites.  Working with its state,  tribal, and local partners
to meet its objective to sustain, cleanup, and restore communities and the ecological systems
that support them.  Together with extension of the Brownfields tax  credit, EPA  intends to
achieve the following results in FY 2006:

       •   Assess 1,000 Brownfields properties
       •   Clean up 60 properties using  Brownfields funding


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                                           Goal 4:  Healthy Communities and Ecosystems
       •   Leverage $1 billion in cleanup/redevelopment funding
       •   Leverage 5,000 jobs
       •   Train 200 participants, placing 65 percent in jobs

Community Action to Renew the Environment

       EPA  supports community-based, multi-media  approaches to the  reductions of toxics
through the Community Action to Renew the Environment (CARE) program.  This  program fills
a gap in our national programs which provide a broad level of basic health and environmental
protection  but which do not always sufficiently meet the  needs of all communities, especially
those which are overburdened  by toxic pollutants. CARE  works to reduce those risks through
cost-effective, tailored and immediate actions.  Grants will be awarded to provide funding for
communities to organize  and assess the risks in their community and to take action to reduce
those risks.  The program also provides multi-media risk  reduction and risk assessment tools,
models to  assist communities  in identifying, prioritizing and reducing risks.  This  program will
result in measurable results in the reduction of exposures to toxic pollutants  including  toxic
chemicals, lead,  pesticides  and particulates,  as well as a reduction  in exposure to asthma
triggers.

Smart Growth

       The  Smart  Growth program  achieves measurably improved  environmental  and
economic  outcomes by  working with  States, communities,  industry leaders,  and  nonprofit
organizations to  minimize the environmental  impacts  of development.  EPA provides tools,
technical   assistance,  education,  research  and  environmental  data to  help  States  and
communities grow in ways that minimize  environmental and health  impacts and evaluate
environmental consequences of various development patterns.  EPA's Smart Growth activities
and  tools  show community and  government  leaders  how  they  can meet  environmental
standards  through innovative community design and identify and research new policy initiatives
to improve environmental quality by supporting environmentally friendly development patterns.
In FY 06, EPA plans to build upon its work in Smart Growth outreach and direct implementation
assistance.

       EPA will also continue to coordinate smart growth work with EPA's Brownfield program
to reuse and revitalize vacant  and abandoned properties.  EPA  plans to  continue developing
incentives  for brownfield  redevelopment, provide direct assistance to communities working on
brownfields,  and maintain our education and outreach on  innovative  methods for brownfield
redevelopment.

Research

       EPA  has  a responsibility to ensure that efforts to reduce potential environmental  risks
are based  on the best available scientific information. Strong science allows identification of the
most important sources of risk to human health and the environment as well as the best means
to detect, abate, and avoid possible environmental problems, and thereby guides our priorities,
policies, and deployment  of resources.

       To  enable the Agency to enhance science and research for human health, communities,
and ecosystems through 2008,  EPA  will  engage  in high  priority,  multidisciplinary research
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Goal 4:  Healthy Communities and Ecosystems
efforts to improve understanding of the risks associated with: 1) human health and ecosystems;
2) mercury; 3) pesticides and toxics; 4)  computational toxicology; 5) endocrine disrupters; 6)
global  change; and  7)  homeland  security.   The  Agency also  is proposing an  Advanced
Monitoring Initiative (AMI) for FY 2006, which will bring the best monitoring data and information
into environmental decision making to protect human health and the environment.

       In FY 2006, EPA will continue research efforts on susceptible subpopulations to support
the National Children's Study (NCS). The Agency will collaborate with  the NCS Interagency
Consortium to  assess the early pre-  and post-natal  NCS  results,  and  develop tools  for
characterizing environmental risks to young children and adolescents  participating in the study.

       Also, the Agency's human health risk assessment research program expects to produce
32 final and external review draft  dose-response assessments of  high priority chemicals in
support of Program Office,  Regional, state and tribal risk assessment needs. These include
three assessments of microbial contaminant risks in support of Contaminant Candidate List
(CCL)  regulatory determinations by EPA's Water program; and one final  Air Quality Criteria
Document (AQCD-ozone) and  one external review draft AQCD (lead) to  support National
Ambient Air Quality Standards (NAAQS) decision-making.

       In order to better understand the current condition of  ecosystems,  what stressors are
changing that  condition, what  the  effects are  of those changes, and what can be done to
prevent, mitigate, or adapt to those changes the Agency's ecosystems research will continue to
develop approaches  to identify  and  test the linkages between probability-based and targeted
water quality monitoring  programs, landscape characteristics, and the probability of water body
impairment. Monitoring methods and decision support systems will  continue being  developed
and diagnosis  and forecasting models previously developed will be applied to provide a better
scientific basis for ecosystem protection and restoration. In FY 2006 EPA will also continue
research to  evaluate the effectiveness  of restoration options for  aquatic ecosystems, with
particular emphasis on options for the Mid-Atlantic Region and the western United States.

       In the  mercury research program, research  will focus on evaluating the cost  and
performance of options to reduce mercury emissions from coal-fired utility boilers and further
testing of continuous source emission  monitors (CEMs).   Work  on control technologies will
include pilot- and full-scale testing of systems that optimize mercury, SO2, and NOx control from
the combustion  of   bituminous, sub-bituminous,  and lignite  coals  and  evaluation  of the
performance and cost of promising control technologies under development (e.g., new sorbents)
and assessing how these technologies impact the characteristics of coal combustion residues.

       EPA continues to make  real progress in the area of computational  toxicology.   In  FY
2006,  the  Agency   expects to deliver  the  first  alternative  assay for  animal  testing of
environmental toxicants. This assay could be a replacement for a  currently used animal-based
assay in the Tier 1 screening battery of  compounds that may disrupt the body's  endocrine or
hormonal systems.  Also, under its endocrine  disrupters research  program, the Agency has
developed and refined assays so that its Prevention, Pesticides, and Toxic Substances program
has the necessary protocols to validate for use in the Agency's Endocrine Disrupters Screening
Program and in FY 2006 will develop a report on a protocol to screen environmental chemicals
for their ability to interact with the male hormone receptor.
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                                           Goal 4: Healthy Communities and Ecosystems
       EPA's homeland security research program supports the Administration's R&D priority of
addressing our Nation's  ability to prevent,  detect,  treat,  remediate,  and attribute  acts  of
terrorism.   Homeland  Security research  will  continue to enhance the state of knowledge  of
potential  threats,  as well  as response  capabilities  in  accordance  with  Homeland Security
Presidential  Directives (HSPDs).    Areas of  emphasis will  include  decontamination  and
consequence management,  water  infrastructure  protection, and  threat  and  consequence
assessment.

       The Agency will also train  the next generation of environmental scientists  through its
fellowship programs and seek to identify emerging risks and opportunities in nanotechnology
through its Science to Achieve Results (STAR) program exploratory grants program.

       EPA continues  to  work closely  with the Administration's  Climate Change Science
Program  (CCSP).  EPA's  Global Change Research Program is focused on understanding the
potential  consequences of global change with the goal  of producing information that can be
readily used by  policymakers to understand the various potential impacts of global change and
to formulate strategies to effectively respond to the risks  and  opportunities  presented by global
change.    In  addition,  EPA  manages  its  basic  research  programs  according  to the
Administration's Investment Criteria for Research and Development.  Specifically, the Agency's
detailed, externally-reviewed multi-year plans for its research programs describe clear goals and
priorities, and are periodically updated to reflect changes in science and resources.

       As part of the periodic multi-year  plan revisions,  EPA is examining the design  of each
program to help identify its outputs, customers,  transfer  needs, and  short-, intermediate-, and
long-term  outcomes.  Beginning  in FY2005,  EPA  is  implementing regular evaluations by
independent and external  panels that provide  prospective and retrospective review  of program
relevance, quality,  and performance, including the program's design and  performance goals.
The Agency's Board of Scientific Counselors, the chosen mechanism for  these reviews, will
examine the ecosystems protection and human health research programs in the second quarter
of FY 2005.  EPA's Science to Achieve Results (STAR) grants program is also managed
according to the Investment Criteria for Research and Development,  ensuring the quality of its
extramural research through a competitive, peer-reviewed awards process.

       In  FY 2006, a portion of EPA's pesticides  and toxic  substances research  will be
accomplished using a new approach to applied research funding at  EPA.  This arrangement,
based  on the existing  collaborative framework between the media and  research offices,  is
designed to ensure continued relevance and  quality of applied research at EPA. In FY 2006,
funds will be provided to the Office of Prevention, Pesticides, and Toxic Substances to use a
fee-for-service arrangement with the Office of Research  and  Development to obtain additional
research  focusing on the Agency's highest priority pesticides and toxic substances research
needs.

       In  addition,  two programs  in this  Goal have been reviewed through the Program
Assessment Rating Tool  (PART).   The  ecosystems protection  research  program is in the
process of responding to PART recommendations, including developing outcome and efficiency
measures.  EPA will reassess the program in the spring of 2005.  EPA also reviewed for the FY
2006 PART process EPA's endocrine disrupters program, which received an "Adequate" rating.
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Goal 4:  Healthy Communities and Ecosystems
Enforcement and Compliance

       EPA's continued enforcement efforts will be strengthened through the development of
measures to assess the impact of enforcement activities, and assist in targeting areas that pose
the greatest risks to human health or the environment; display patterns of noncompliance; and
include disproportionately exposed populations.  In addition,  the  EPA's enforcement program
supports  Environmental  Justice  efforts by  focusing  enforcement  actions  and  criminal
investigations on industries that have repeatedly violated environmental laws in minority and/or
low-income areas.

Environmental Justice

       EPA's environmental justice program will continue  education,  outreach, and data
collection  initiatives.   The program  provides  a  central  point for  the  Agency  to  address
environmental  and  human  health concerns in  minority and/or  low-income communities,
segments of the population that have been disproportionately exposed to  environmental harms
and  risks.   The  program will  continue to manage  the Agency's  Environmental  Justice
Community  Small  Grants program that assists community-based organizations working to
develop solutions to local environmental issues.

       The Agency will continue to support the National Environmental Justice Advisory Council
(NEJAC). The Council provides the Agency with significant input  from interested stakeholders
such as community-based organizations, business and  industry,  academic institutions, state,
tribal and local governments, non-governmental organizations and environmental groups.  The
Agency will  also continue to chair an Interagency Working Group (IWG) consisting of eleven
departments and agencies, as well as representatives of various White House offices, to ensure
that environmental justice  concerns are incorporated into all Federal programs.

International Affairs

       Many human health and environmental risks to the American public originate outside our
borders.  Many  pollutants can travel easily across borders  - via rivers, air and ocean currents,
and migrating wildlife.  Even in the remote Arctic,  industrial chemicals such as polychlorinated
biphenyls (PCBs) have been found in the tissues of local wildlife.  Further, differences in public
health standards can contribute to global pollution.   A chemical  of particular concern to one
country may not be controlled or regulated in the same way by another. EPA employs a range
of strategies for achieving its goals. These strategies  include participation in bilateral programs
(U.S.-Mexico and   U.S.-Canada  programs  and  the  Border  Environmental  Cooperation
Commission (BECC)),  as  well  as cooperation  with  multinational organizations  like the
Commission for Environmental Cooperation, the  World Trade Organization,  and the World
Health Organization. Strategies also include contributing to a set of measurable end points that
will show reductions in pollutants of concern and pollutants at their  origin, as well as exposure to
our citizens along  the  US borders, thereby reducing the level of pollutants in the global
atmosphere
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                                     Goal 5: Compliance and Environmental Stewardship
  Goal 5:  Compliance and Environmental Stewardship

Strategic   Goal:    Improve  environmental   performance  through   compliance  with
environmental requirements,  preventing  pollution, and promoting environmental stewardship.
Protect human health and the environment by encouraging innovation and providing incentives
for governments, businesses, and the public that promote environmental stewardship.
                                      Resource Summary
                                               ($ in 000)
^^
10.1% of Budget
1 - Improve Compliance
2 - Improve Environmental
Performance through Pollution
Prevention and Innovation
3 - Build Tribal Capacity
4 - Enhance Science and Research
Goal 5 Total
FY 2005
President's
Budget
$438,530.6
$147,593.1
$79,625.8
$69,593.0
$735,342.5
FY2006
President's
Request
$486,878.1
$142,142.6
$74,016.8
$57,940.7
$760,978.2
Difference
$48,347.5
-$5,450.5
-$5,609.1
-$11,652.3
$25,635.7
Workyears
3,446.9
3,469.3
                                                                          22.3
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

      Throughout FY  2006, the Environmental Protection  Agency will  work to improve the
nation's environmental  protection practices,  and to enhance natural resource conservation on
the part of government, business, and the public. To accomplish these goals, the Agency will
employ a mixture of effective inspection, enforcement and compliance assistance strategies;
provide leadership  and support  for pollution prevention and  sustainable practices;  reduce
regulatory barriers; and refine and apply  results-based, innovative, and multimedia approaches
to environmental stewardship and safeguarding human health.

      In order to  be  effective,  the  EPA  requires a strong  enforcement  and compliance
program,  one which identifies  and  reduces noncompliance  problems; assists the regulated
community in understanding environmental laws and regulations; responds to complaints from
the public; strives to secure a level economic playing field for law-abiding  companies;  and
deters future  violations.   The EPA will protect  human  health and  the  environment by
encouraging innovation  and providing incentives for governments, businesses,  and the public to
promote environmental  stewardship. In addition, EPA will assist Federally recognized Tribes in
assessing  environmental  conditions in Indian Country, and  will  help build their capacity to
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Goal 5:  Compliance and Environmental Stewardship


implement environmental programs.  EPA will also strengthen  the scientific evidence and
research supporting environmental policies and decisions on compliance, pollution prevention,
and environmental stewardship.

Improving Compliance with Environmental Laws

      Critical to the success of EPA's mission is a strong commitment to ensuring compliance
with environmental  laws and policies. Working  in partnership with state and Tribal governments,
local communities  and other  Federal agencies, in FY 2006  EPA will  identify and  address
significant environmental and  public health problems,  strategically deploy its resources, and
make use of integrated approaches to achieve  strong environmental outcomes. In the context of
the Enforcement and Compliance Assurance Program,  these principles mean that we  must be
"smart" in the work that we do.

In order to meet the Agency's goals, its "smart enforcement" strategy employs an integrated,
common-sense  approach to problem-solving and decision-making. An appropriate  mix of data
collection and analysis; compliance  monitoring, assistance and  incentives; civil and  criminal
enforcement resources;  and  innovative  problem-solving  approaches  are used  to  address
significant environmental issues and achieve environmentally beneficial outcomes.

      This approach also  requires that the Agency develop and maintain strong and flexible
partnerships with regulated entities  and a well-informed public, in order to foster a climate of
empowerment and shared responsibility for the quality of our nation's land,  resources and
communities.  Thus the Agency can carefully target its enforcement and compliance assurance
resources, personnel and activities to address the most significant risks to human health and
the environment,  and to ensure that certain  populations do  not bear a disproportionate
environmental burden.

      EPA's  continued enforcement efforts will be strengthened through the development of
measures to assess the impact  of enforcement and compliance  activities; assist  in targeting
areas that pose the greatest  risks  to human health or the environment;  display patterns  of
noncompliance;  or  include  disproportionately exposed  populations.  Further, EPA cooperates
with states and the  international community to enforce and ensure compliance with cross-border
environmental regulations, and to help build their capacity to design and implement effective
environmental regulatory, enforcement and Environmental Impact Assessment programs.

   •  Compliance Assistance  and Incentives:    The  Agency's Enforcement and
      Compliance Assurance Program  uses compliance  assistance and  incentive  tools  to
      encourage compliance with  regulatory requirements,  and to  reduce adverse  public
      health  and environmental  problems.  To achieve compliance, the regulated community
      must first understand its obligations, and then learn how to best comply  with regulatory
      obligations.  Throughout FY 2006 EPA  will support the regulated  universe by working to
      assure that  requirements  are clearly understood, and will  help industry to identify cost-
      effective  innovative, compliance options. EPA also enables other assistance providers
      (e.g., states, universities) to provide compliance information to the regulated community.

   •  Compliance Monitoring:   The Agency  reviews and evaluates the activities  of the
      regulated community, to determine compliance with applicable laws, regulations,  permit
      conditions and settlement  agreements, and to determine whether conditions presenting
      imminent and substantial  endangerment exist.  The majority of work years devoted to
      compliance  monitoring are   provided  to the Agency's  regional offices  to  conduct
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                                      Goal 5:  Compliance and Environmental Stewardship


       investigations and on-site inspections, and perform monitoring, sampling and emissions
       testing.  FY 2006 Compliance Monitoring activities will be both environmental  media-
       and sector-based. The traditional media-based inspections compliment those performed
       by  states and Tribes, and are a key part of our strategy for meeting the long-term and
       annual goals established for the air, water,  pesticides, toxic substances, and hazardous
       waste environmental goals included in the EPA Strategic Plan.

   •   Enforcement:  The Enforcement Program addresses violations of environmental laws,
       to ensure that violators come into compliance with Federal laws and regulations.  In FY
       2006 the program  will work to achieve the Agency's environmental  goals through
       consistent,  fair and focused  enforcement of all environmental statutes. The  overarching
       goal  of the Enforcement program is to protect human health  and the environment,
       targeting its actions according  to degree of health and environmental risk.  Further,  it
       aims  to  level the economic playing field by  ensuring that violators do not realize an
       economic benefit from non-compliance, and also seeks to deter future violations.

   •   Auditing and Evaluation Tools: Maximum compliance requires the active efforts of
       the regulated community to police  itself. Throughout  FY 2006  EPA will  continue to
       investigate options  for encouraging self-directed audits  and disclosures.  It will also
       continue to measure and evaluate the effectiveness of Agency programs in improving
       compliance rates and provide information and compliance assistance to the regulated
       community.  Further, the Agency will  maintain  its focus  on  developing  innovative
       approaches through better communication,  fostering partnerships and cooperation, and
       the application of new technologies.

   •   Partnering:  State, Tribal  and local governments  bear much of the responsibility for
       ensuring compliance, and  EPA works in  partnership with  them  and other Federal
       agencies to promote environmental protection.   EPA  also develops  and maintains
       productive partnerships with other nations, to enable and enforce compliance with U.S.
       environmental standards and regulations.

Improving Environmental Performance Through Pollution Prevention

       EPA  will work to bring about a performance-oriented  regulatory system that develops
innovative,   flexible  strategies to  achieve  measurable  results;  promotes  environmental
stewardship  in all parts  of society;  supports sustainable development and pollution prevention;
and fosters a culture of creative environmental problem solving that has a high capacity for
collaborative results-driven work and the organizational systems to support it.

   •   Partnering with  Businesses and Consumers:   In 2006, through the Pollution
       Prevention (P2) program,  EPA will continue to  encourage,  empower,  and  assist
       government and  business to "green"  the nation's supply and demand structures to make
       them more environmentally  sound.  Through the Environmentally Preferable Purchasing
       Program, the Agency will help Federal agencies identify and procure those products that
       generate the least  pollution, consume  fewest non-renewable  natural  resources, and
       constitute the least  threat to human health and to the environment.  EPA's innovative
       Green Suppliers Network Program works with large manufacturers to increase  energy
       efficiency; identify cost-saving opportunities; optimize resources and technology through
       the development of sound business  approaches incorporating pollution prevention; and
       to promote those approaches among their numerous suppliers.
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Goal 5:  Compliance and Environmental Stewardship
     "An Ounce of Pollution Prevention is Worth Over 167 Billion Pounds of Cure"

                    A Decade of Pollution Prevention Results, 1990-2000
                    167 Billion Pounds of
                   Pollution Prevented by
                        Media
                 Water
Resources Conserved

215 million kWh of energy


4.1 billions gallons of water

$666 million in cost savings
            Source: National Pollution Prevention Roundtable, January 2003 report on achievement of state and local P2

       Partnering with Industry:   The EPA will continue to reduce  the amount of toxic
       chemicals  in use  by encouraging the design of  alternative  less-toxic chemicals and
       industry processes through its Green Chemistry and Green Engineering Programs.  New
       emphasis will be placed on the development of environmentally preferable substitutes
       for emerging chemicals of concern such as  brominated flame retardants,  perfluorinated
       acids, and chemicals which are persistent in the environment, toxic, and capable of
       accumulating in animal, fish, and human tissue.   In conjunction with  the efforts  of the
       Green Chemistry and Green Engineering Programs, the Design  for the Environment
       Program  will  continue collaborative  partnerships with  industries  to  develop  safer
       products, processes and technologies.

       Pollution Prevention Grant Program: Pollution  Prevention Grants  to states and
       Tribes enable them to provide  technical  assistance, education and outreach to  assist
       businesses and industries in identifying strategies and solutions to reduce wastes and
       pollution at the source.    In 2006, EPA plans to enhance its P2 grant management
       system  by  incorporating   pollution  prevention  metrics that  capture quantifiable
       environmental  results within individual  work plans,  and  by sharing  those  results
       regionally and nationally.

       NEPA Federal Review:  EPA  fulfills  its  uniquely Federal  responsibilities under the
       National Environmental Policy  Act (NEPA) by reviewing and commenting  on other
       Federal agency environmental impact statements  (EISs). NEPA  requires that Federal
       agencies prepare and submit EISs to  identify potential environmental  consequences of
       major proposed activities, and develop plans to mitigate  or eliminate negative impacts.
       The Enforcement  and Compliance Assistance Program  maximizes its  use of NEPA
       review resources by targeting its efforts toward potentially high-impact projects, thereby
       promoting cooperation and innovation, and working towards a more streamlined review
       process.

       Environmental Information Exchange Network:  The Exchange Network  Grant
       Program provides funding to states, territories, Tribes, and Tribal consortia to help them
       develop the information management and technology (IM/IT) capabilities they need to
       participate in the Environmental Information Exchange Network  (Exchange Network);
       define common data standards, formats, and trading  partner agreements for sharing
5-4

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                                      Goal 5: Compliance and Environmental Stewardship


      data over the Exchange Network;  and the plan, develop, and implement  collaborative,
      innovative uses of the Exchange Network.


Promoting Environmental Stewardship and Innovation

      In  FY  2006,  EPA will  encourage  and support states,  Tribes,  communities  and
businesses to  "go  beyond compliance" with environmental  regulations,  and to  practice and
promote environmental stewardship. EPA will accomplish its goals using the next  generation of
voluntary innovative environmental  protection strategies. The  Agency will work with states,
businesses, and communities to develop the "next generation" of environmental protection, one
that focuses more  on  results  than  process, and promotes  business practices that are both
environmentally and economically sustainable.  EPA will focus on five areas of work under its
innovation strategy:

1.  Promote innovative leadership through new ideas, creative partnerships, and sound
   analysis;

2.  Encourage  environmental stewardship  in businesses;
3.  Promote stronger facility-level environmental management, including Environmental
   Management Systems (EMSs);

4.  Improve environmental performance of selected business sectors; and
5.  Improve program efficiency through increased evaluation and measurement.

   •  Innovation Grant Program:  EPA will continue to award Innovation Grants to states
      and Tribes to encourage testing innovative environmental protection strategies, such as
      permit streamlining; development of environmental management systems  that promote
      the use of innovative technologies for better environmental  results; and other projects
      that demonstrate improved efficiencies in environmental management.

   •  Performance  Grant Fund: For FY 2006 EPA proposes a new competitive state and
      Tribal Performance Grant Fund to support results-oriented environmental protection
      work.   The  grants will help states and Tribes measure, document  and improve the
      results  of their  environmental protection programs.  The Fund will support  state work
      with businesses, non-profit organizations and communities to pursue alternative means
      of compliance and performance through a variety of means. These  include  pollution
      prevention,  changes  in  business processes,  product stewardship, technical  and
      compliance  assistance,  recycling and pollution trading.   The Fund  will  also support
      geographic, ecosystem, and regulatory program performance improvement initiatives.

   •  Performance  Track: One of EPA's most successful voluntary programs,  Performance
      Track recognizes and rewards private and public facilities that demonstrate levels of
      environmental  performance  that exceed  current requirements.  Performance  Track
      membership is steadily growing, as more and more businesses recognizes the benefits
      of the program, and see that their participation "makes good  business sense."  EPA will
      continue to recruit facilities to participate in Performance Track, and provide  assistance
      to those facilities to improve their environmental performance. In FY 2006 Performance
      Track members will collectively achieve an annual reduction of:  900 million gallons in
      water use; 7,000,000 MMBTUs in energy use; 20,000 tons in materials  use;  300,000
      tons of solid waste; 35,000 tons of air releases; and 10,000 tons in water discharges.
                                                                                 5-5

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Goal 5:  Compliance and Environmental Stewardship


   •   Sector-based Stewardship: In FY 2006 EPA will continue to work with the following
       industrial  business sectors:  agribusiness, cement manufacturing,  construction, forest
       products,  iron and steel manufacturing,  paint and coatings, ports,  shipbuilding, metal
       finishing, die casting and meat processing. EPA will work with  national representatives
       of these business sectors to set pollution reduction goals, measure performance,  provide
       environmental protection tools and  technical  assistance,  remove barriers,  develop
       incentives, reduce regulatory burdens and test innovative strategies.

   •   Small  Business Ombusdman:  EPA will  continue  to
       support the Small Business Ombudsman program, which
       serves  as  EPA's gateway and leading advocate for  small
       business issues.  The Agency will partner with state Small
       Business  Assistance  Programs,  and hundreds  of  small
       business and trade associations, to reach out to the  small
       business  community.   These partnerships  provide the
       information and  perspective EPA  needs to  help  small  Servin8 Sraall Businesses anfl the En,iroiment
       businesses achieve their environmental  goals, and  gives
       businesses access to networks, advocacy resources, tools and educational forums.


Building Tribal Capacity

       Since adoption of the  EPA  Indian Policy in  1984 EPA has worked with Tribes on a
government-to-government basis,  one  that affirms  the Agency's trust  responsibility over
Federally recognized Tribes and Tribal governments. Under Federal environmental statutes, the
Agency has responsibility for  assuring human health  and environmental protection  in Indian
communities.  EPA has worked to establish the internal infrastructure and organize its activities
in order to meet this responsibility. The creation of EPA's American  Indian Environmental Office
(AIEO)  in 1994  took responsibility for  such  efforts and  was a further step  in  ensuring
environmental  protection in  Indian Country. EPA's strategy for achieving this Objective  has
three major components:

   •   Establish an Environmental Presence in Indian Country: The Agency will work
       to create an environmental presence for each Federally recognized  Tribe.  In FY 2006,
       using Tribal GAP grant resources  EPA will provide  approximately  510 Federally
       recognized Tribes and InterTribal Consortia access  to resources to hire at least  one
       person  working  in their community to build a strong, sustainable  environment for the
       future. Tribal communities can then assess environmental conditions on their lands,  and
       build an environmental  program tailored to their specific needs.  In addition to assisting
       in the building of Tribal environmental capacity, another  key role of this workforce is to
       alert EPA of immediate public health and ecological threats, so that EPA  can work with
       the Tribe to respond quickly and effectively.

   •   Provide Access to Environmental Information: EPA will provide the information
       needed by Tribes to  meet EPA and Tribal environmental priorities.   At the same time,
       ensure  that the  Agency has the ability to view and  analyze the conditions on Indian
       lands, as  well as the impacts of EPA and Tribal actions and programs on Indian trust
       lands.

   •   Implementation of Environmental Goals:  The Agency will provide opportunities
       for the implementation  of Tribal environmental programs by Tribes,  or directly by EPA,
       as necessary.
5-6

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                                       Goal 5: Compliance and Environmental Stewardship


       The Agency continues to take advantage of new technology to establish direct links to
the U.S. Geological Service, Bureau of Reclamation, Indian Health Service, and other Federal
agency data systems, to further the development of an integrated, comprehensive, multi-agency
Tribal Enterprise Architecture. The Agency continues to formalize interagency data standards
and protocols to ensure quality information is collected and reported  consistently among the
Federal agencies.  To this end, EPA has adopted Tribal Identifier codes that will enable data
systems to identify Tribal sources of information.  In  FY 2006,  EPA will integrate 10 existing
Agency data systems and assist other agencies to adopt these common codes.

Research

       Over the past several years the Agency has increasingly focused  on preventative and
sustainable  approaches to  health and  environmental problems.  Sustainable approaches
require:  (1)  innovative  design   and production  techniques  that   minimize  or  eliminate
environmental liabilities; (2) integrated management of air, water, and  land resources; and (3)
changes  in  the  traditional  methods of creating and distributing  goods and services.   EPA
remains committed to helping industry achieve these ideals while at the  same  time adopting
more effective and efficient practices, materials, and technologies.

       In FY2006, research will explore  the principles governing sustainable systems and the
integration of social, economic, and environmental objectives in environmental assessment and
management. The Agency will also  assess the  interactions between various  stressors that
threaten  human and environmental  health,  and will work  to  develop innovative  and  cost-
effective  responses.  In a broader context, the program will focus  not just on the industrial
sectors, but other areas critical to stewardship, e.g., municipal sector and ecosystems. FY 2006
research will also  develop tools  and methodologies to prevent pollution  at its source and
evaluate the performance of innovative environmental technologies through the Environmental
Technology Verification (ETV) program.

       EPA manages  its  compliance  and  environmental  stewardship  research  programs
according  to  the  administration's  Investment  Criteria  for  Research   and   Development.
Specifically, the Agency is in the process of revising its pollution prevention multi-year plan to
emphasize sustainability.  This multi-year plan will describe clear goals and priorities.  As part of
this effort,  EPA  will identify the appropriate outputs, customers, transfer needs, and short-,
intermediate-, and  long-term outcomes for this  program.   In FY2005, EPA will continue to
implement  a program of regular evaluations by independent and external panels,  to provide
prospective  and  retrospective review  of programs'  relevance, quality,  and  performance,
including the programs'  design and performance goals.

       EPA also conducts  Economics  and  Decision Sciences (EDS) research to  improve
decision  making, cost-benefit analyses,  and  implementation strategies.   In FY 2006,  EDS
research will be accomplished using a new approach to applied research funding at EPA.  This
arrangement, based on the existing collaborative  framework between the  media and research
offices, is designed to ensure continued relevance and quality of applied research at EPA.  In
FY 2006, funds will be provided to the Office of Policy, Economics and  Innovation to use  a fee-
for-service  arrangement with the  Office  of Research  and  Development  to obtain additional
research focusing on the Agency's highest priority  economics and decision  science research
needs.

       The Agency's Forensic Support program  provides specialized scientific  and technical
support for  the  nation's most complex  civil and criminal enforcement cases,  and provides
                                                                                   5-7

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Goal 5:  Compliance and Environmental Stewardship


technical expertise for non-routine Agency compliance efforts. In FY 2006, efforts to stay at the
forefront of environmental enforcement will include the refinement of successful  multi-media
inspection approaches; use of customized laboratory methods to  solve unusual enforcement
case problems; applied research and  development for both laboratory and field applications,
and further development of electronic data analysis methods for use investigative  support
related to computers and data fraud.

       The Forensics  program  also will continue development of emerging technologies in field
and  laboratory  analytical technique, and  evaluate  the scientific basis  and/or technical
enforceability of select EPA regulations.   EPA's National Enforcement Investigations Center
(NEIC)  is the  only accredited  environmental forensics center in  the nation;  in FY 2006 the
Center will also continue to function under more stringent International Standards of Operation
for environmental data measurements to maintain its accreditation.
5-8

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Appendixes

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                                                     Appendix A:  Categorical Grants
               Categorical Grants Program (STAG)
                                 (Dollars in Millions)
        $1,500
        $1,000
          $500
            $0
$856



(DOOQ
J>OOJ



$1,006

$1,079
/.-u.-u.-u.-u.-u.-u.-u.-u



$1,143



$1,168

$1,252



$1,181

               1999 Ena.       2001 Ena.      2003 Ena.      2005 Pres.
                      2000 Ena.       2002 Ena.      2004 Ena.      2006 Pres.
       In FY 2006, the President's Budget requests a total of $1,181 million for 23 "categorical"
program grants for state and tribal governments.  EPA will continue to pursue its strategy of
building and supporting state, local and tribal capacity  to implement, operate, and enforce the
Nation's  environmental  laws.    Most  environmental  laws  envision  establishment  of a
decentralized nationwide structure to protect public health and the environment.  In this way,
environmental  goals  will  ultimately  be  achieved  through the  actions,   programs,  and
commitments of state, Tribal and local governments, organizations and citizens.

       In FY 2006,  EPA will continue to offer flexibility to state  and tribal governments to
manage their environmental  programs as well as provide technical and financial assistance to
achieve mutual environmental goals.  First, EPA and its state and  tribal partners will continue
implementing the National Environmental Performance  Partnership  System (NEPPS).  NEPPS
is designed to allow states more flexibility to operate their programs, while increasing emphasis
on measuring and reporting environmental  improvements. Second, Performance Partnership
Grants (PPGs) will continue to allow states and tribes funding flexibility to combine categorical
program grants to address environmental priorities.

HIGHLIGHTS:

State & Local Air Quality Management, Radon, and Tribal Air Quality
Management Grants

       The FY 2006  request includes $242.8 million for  Air State and Local Assistance grants to
support state, local,  and tribal air programs as well as radon programs.  State and Local Air
Quality    Management    grant    funding    is   requested    in    the    amount    of
$223.6 million. These funds provide resources to state and local air pollution control agencies
                                                                                A-1

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Appendix A: Categorical Grants
for the development and implementation of programs for the  prevention and control  of air
pollution or for the implementation  of national primary and secondary ambient air standards.
They can also be used to support the coordination and acceleration of research, investigations,
experiments,  demonstrations, surveys and studies  relating to the causes, effects (including
health and welfare effects), extent, prevention and  control of air pollution.  Tribal Air Quality
Management grants, requested in  the  amount of $11.0  million,  provide  funds to Tribes  to
develop and implement air pollution prevention and control programs, or to implement national
primary  and secondary ambient air standards.  Lastly, this request includes  $8.2 million for
Radon grants, to provide funding for state radon programs.  The President's Budget includes
appropriations language for 2006 that would reduce  the state match requirement for the  radon
grants from 50 percent to 40 percent.  This will improve effectiveness of these  grants by
increasing States' ability to obligate funds to conduct radon testing and mitigation programs.

Pesticide Enforcement, Toxics Substance Compliance, & Sector Program Grants

      In  FY 2006,  the  President's Budget  includes $26.3 million to  build environmental
partnerships with States and Tribes  and to strengthen their ability to address environmental and
public health threats.  The  enforcement state grants request consists  of $18.9 million for
Pesticides Enforcement, $5.15 million for Toxic Substances Enforcement Grants, and  $2.25
million for Sector Grants.  State and Tribal enforcement grants will be awarded to  assist  in the
implementation of compliance and enforcement provisions of the Toxic Substances Control Act
(TSCA)  and the Federal  Insecticide, Fungicide, and Rodenticide Act (FIFRA). These grants
support state and tribal compliance activities to protect the environment from harmful chemicals
and pesticides.

      Under the Pesticides  Enforcement Grant program, EPA provides  resources to States
and Indian Tribes to conduct FIFRA compliance inspections and take appropriate enforcement
actions and implement programs for farm worker protection.   Under the Toxic  Substances
Compliance Grant program, states receive funding for compliance inspections of asbestos and
polychlorinated  biphenyls (PCBs)   and  for  implementation  of the state lead  abatement
enforcement program.  The funds will complement other Federal  program grants for building
state capacity for lead abatement, and enhancing compliance with disclosure,  certification and
training requirements.

Pesticides Program Implementation Grants

      The  President's  FY  2006  Budget  includes  $13.1 million  for   Pesticides  Program
Implementation grants.  These resources will assist States and Tribes in implementing the safer
use of pesticides, including: worker  protection; certification and training of pesticide applicators;
protection of endangered species; tribal pesticide programs; integrated pest management and
environmental stewardship; and protection of water from pesticide contamination.

Lead Grants

   The  President's  FY 2006 Budget includes $13.7 million for Lead grants. This funding will
support  the  development of  authorized programs in both  States and Tribes  to prevent lead
poisoning  through the training of workers who remove lead-based paint,  the  accreditation  of
training programs, the certification of contractors, and renovation education programs. Another
activity that this funding will support is the collection of lead data to determine the nature and
extent of the lead problem within an  area.
A-2

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                                                      Appendix A:  Categorical Grants
Pollution Prevention Grants

      The FY 2005 request includes $6.0 million for Pollution Prevention grants.  The grant
program provides technical assistance towards the achievement of reduced pollution through
source reduction.

Environmental Information Grants

      In FY 2006, the President's Budget includes $20.0 million to continue the Environmental
Information Exchange  Network (Exchange  Network)  grant program.  Started  in  2002,  the
Exchange Network grant program  provides States, territories, Tribes,  and Tribal Consortia
assistance to develop the information management and  technology (IM/IT) capabilities they
need to participate in  the Exchange  Network.   The  Exchange  Network is an  Internet and
standards-based information systems network that allows the EPA and its partners to exchange
a variety of environmental data  electronically.    Implementation  and continued use of the
Exchange Network improves  environmental decision making,  increases environmental data
quality and accuracy,  and reduces burden on  those  who  provide and  those  who access
information.

Underground Storage Tanks (UST) Grants

      The President's FY 2006 Budget includes  $11.95 million for Underground Storage Tank
grants.  States and Tribes will use these  resources to ensure that  UST owners and operators
routinely and  correctly monitor all regulated  tanks and piping in accordance with regulations,
and also to develop programs with sufficient authority and enforcement capabilities to operate in
lieu of the Federal program.

Hazardous Waste Financial Assistance Grants

      In  FY 2005, the  President's  Budget includes  $104.4 million for Hazardous Waste
Financial Assistance grants.  Hazardous  Waste Financial Assistance grants are  used for the
implementation  of the Resource  Conservation and  Recovery Act (RCRA) hazardous  waste
program, which includes  permitting, authorization, waste  minimization, enforcement, and
corrective action activities.

Brownfields Grants

      In FY  2006, the President's  Budget includes $60.0 million, to continue the Brownfields
grant program that provides assistance to states and tribes to develop and enhance their state
and Tribal response programs.  This funding will help States and Tribes  develop legislation,
regulations, procedures, and guidance, to establish or  enhance the administrative and legal
structure of their response programs.  In addition,  grant funding will  help to capitalize Revolving
Loan  Funds for Brownfields  cleanup,  purchase  environmental insurance,  and conduct site-
specific related activities such as assessments at Brownfields sites.

Water Pollution Control (Clean  Water Act Section 106) Grants

      In FY  2006, the President's  Budget includes $231.9 million for Water Pollution Control
grants, an increase of $9.5 million over 2005.  This increase in funds will be used to bolster
                                                                                  A-3

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Appendix A: Categorical Grants
National Pollution Discharge Elimination System (NPDES) permitting efforts, enhance water
quality monitoring activities and will lead to improved water quality standards.

Wetlands Grants

      In FY 2006, the President's Budget includes $20.0 million for Wetlands Program Grants.
These grant resources will  be  used to assist States and  Tribes in  protecting wetlands and
waters not covered by the Clean Water Act.

Public Water System Supervision Grants

      In FY 2006,  the President's Budget includes $100.6 million for Public Water System
Supervision (PWSS) grants.  These grants  provide assistance to  implement and enforce
National Primary Drinking Water Regulations to ensure the safety of the Nation's drinking water
resources and to protect public health.

Indian General Assistance Program Grants

      In FY 2006, the President's Budget includes $57.5 million for the Indian General
Assistance Program  (GAP) to help Federally recognized tribes and inter-tribal consortia
develop, implement and assume environmental programs.

Homeland Security Grants

      In FY 2006, the President's Budget includes $5.0 million for homeland security grants to
support  states'  efforts to  work with drinking water and wastewater systems to develop and
enhance emergency operations plans; conduct training in the implementation of remedial plans
in  small systems; and, develop detection, monitoring  and treatment  technology to enhance
drinking water and wastewater security.

Underground Injection Control (UIC) Grants

      The FY  2006 President's  Budget includes $11.0 million for the Underground Injection
Control grants program.  Ensuring safe underground injection of waste materials is a fundamental
component of a comprehensive source water protection program.  Grants are provided to States
that have primary enforcement authority (primacy) to implement and maintain UIC programs.


Targeted Watershed Grants

      The President's FY 2006 Budget funds Targeted  Watershed grants  at $15 million.  The
program supports competitive grants to watershed stakeholders ready  to undertake  immediate
action to improve water quality,  and  to improve watershed protection measures with tools,
training and technical assistance.  Special emphasis will be given to projects that promote water
quality trading opportunities  to more efficiently achieve water quality benefits through market-
based approaches.

Sfafe and Tribal Performance Fund

      The President's FY 2006 Budget includes a $23 million  competitive performance based
state and tribal  grants program. Awardees will be selected  that have  solid  program  plans and
can show  the ability to achieve and measure real  results,  improvements  in the environment
and/or public health.  These grants will stimulate the development of environmental  protection
A-4

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                                                      Appendix A:  Categorical Grants
projects that focus on results, not just process.  It will also focus on the setting of performance
goals, and the  collection and evaluation  of performance data that justify the costs.  These
projects will serve as results-based environmental protection models for replication across the
nation.

Elimination of Tribal Cap on Non-Point Sources

       In 2006,  the President's Budget eliminates the statutory one-third-of-one-percent cap on
Clean Water Act Section 319 Nonpoint Source Pollution grants that may be awarded to Tribes.
Tribes applying  for and receiving Section 319 grants have steadily increased from two in 1991
to over 70 in 2001.  This proposal recognizes the increasing demand for resources to address
tribal nonpoint source program needs.
                                                                                   A-5

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Appendix A: Categorical Grants
CATEGORIAL PROGRAM
GRANTS (STAG)
by National Program and State Grant
(Dollars in Thousands)


Grant
Air& Radiation
State and Local Assistance
Tribal Assistance
Radon

Water Quality
Pollution Control (Section 106)
Beaches Protection
Nonpoint Source (Section 319)
Wetlands Program Development
Water Quality Cooperative Agrmts
Targeted Watersheds
Wastewater Operator Training Grants

Drinking Water
Public Water System Supervision
(PWSS)
Underground Injection Control (UIC)
Homeland Security

Hazardous Waste
H.W. Financial Assistance
Brownfields
Underground Storage Tanks

Pesticides & Toxics
Pesticides Program Implementation
Lead
Toxic Substances Compliance
Pesticides Enforcement

Multimedia
Environmental Information
Pollution Prevention
Sector Program
Indian General Assistance Program
State and Tribal Performance Fund

TOTALS
FY 2005
President's
Budget

$228,550
$11,050
$8,150
$247,750

$222,400
$10,000
$209,100
$20,000
$20,500
$25,000
$1,500
$508,500

$105,100

$11,000
$5,000
$121,100

$106,400
$60,000
$37,950
$204,350

$13,100
$13,700
$5,150
$19,900
$51,850

$25,000
$6,000
$2,250
$62,500
$23,000
$118,750
$1,252,300
FY 2006
President's
Budget

$223,550
$11,050
$8,150
$242,750

$231,900
$10,000
$209,100
$20,000
$0
$15,000
$0
$486,000

$100,600

$11,000
$5,000
$116,600

$104,400
$60,000
$11,950
$176,350

$13,100
$13,700
$5,150
$18,900
$50,850

$20,000
$6,000
$2,250
$57,500
$23,000
$108,750
$1,181,300


Difference

-$5,000
$0
$0
-$5,000

$9,500
$0
$0
$0
-$20,500
-$10,000
-$1,500
-$22,500

-$4,500

$0
$0
-$4,500

-$2,000
$0
-$26,000
-$28,000

$0
$0
$0
-$1,000
-$1,000

-$5,000
$0
$0
-$5,000
$0
-$10,000
-$71,000
A-6

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                                                   Appendix B: Infrastructure Finance
               Infrastructure / STAG Project Financing
                                 (Dollars in Millions)

FY 2005
President's
Budget
FY 2006
President's
Budget
Infrastructure Financing
Clean Water State Revolving Fund (CWSRF)
Drinking Water State Revolving Fund (DWSRF)
$850.0
$850.0
$730.0
$850.0
STAG Projects
Brownfields Environmental Projects
Clean School Bus Initiative
Mexico Border Projects
Alaska Native Villages
Targeted Projects - Puerto Rico
Total
$120.5
$65.0
$50.0
$40.0
$4.0
$1,979.5
$120.5
$10.0
$50.0
$15.0
$4.0
$1,779.5
Infrastructure and Special Projects Funds

       The  President's  Budget  includes  a total of  $1,779.5  million  in  2006  for  EPA's
Infrastructure programs.  Of the total  infrastructure request, $1,599 million will support EPA's
Goal 2: Clean and Safe Water, $180.5 million will support EPA's Goal 4: Healthy Communities
and Ecosystems.

       Infrastructure  funding   under  the   State  and  Tribal  Assistance  Grants  (STAG)
appropriation provides financial assistance to states, municipalities and Tribal governments to
fund a variety of drinking water, wastewater, air and Brownfields environmental projects.  These
funds are essential to fulfill the Federal government's commitment to help our state, Tribal and
local partners obtain adequate funding to construct the facilities required to comply with Federal
environmental requirements and ensure public health and revitalize contaminated properties.

       Providing STAG funds to capitalize State Revolving Fund (SRF) programs, EPA works in
partnership  with the  states  to  provide low-cost loans to municipalities  for infrastructure
construction.  As set-asides of the SRF programs, grants are  available to Indian Tribes and
Alaska Native Villages for drinking water and wastewater infrastructure needs based on national
priority lists.  The  Brownfields  Environmental  Program  provides states, tribes,  political
subdivisions  (including cities,  towns, and   counties) the  necessary tools,  information,  and
                                                                                  B-1

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Appendix B: Infrastructure Finance
strategies  for  promoting   a  unified  approach  to  environmental  assessment  cleanup,
characterization,  and  redevelopment  at  sites contaminated  with  hazardous wastes  and
petroleum contaminants.

       The resources included in this budget will enable the Agency, in conjunction with EPA's
state, local, and Tribal partners, to achieve several important goals for 2006.  Some of these
goals include:

     -  94 percent of the population served by community water systems will receive drinking
       water meeting all  health-based standards with compliance dates of December 2001  or
       earlier.

     -  Award 126 assessment  grants under the Brownfields program, bringing the cumulative
       total grants awarded to 956 by the end of FY  2006 paving the way for productive reuse
       of these properties. This will  bring the  total number of sites assessed to 8,000 while
       leveraging a total of $8.4 billion in cleanup and redevelopment funds since 1995.
Goal 1: Clean Air and Global Climate Change

Clean School Bus USA Initiative
       In FY 2006, EPA will provide $10 million for grants to governmental entities for diesel
school bus  retrofit and replacement projects.  Diesel school buses are a source of emissions
that may cause health risks in children.  EPA began the Clean School Bus USA pilot program in
April 2003 to provide schools and school districts cost-share grants to reduce diesel emissions
from school buses.   More than 24 million children that ride buses  to school are at risk of
exposure to high levels of diesel exhaust.  By retrofitting buses with modern emission control
technology, using cleaner fuels and replacing older school buses, we have the potential percent
to significantly reduce  diesel school bus particulate matter, helping to put tomorrow's cleaner
buses on the road today.
Goal 2: Clean and Safe Water

Capitalizing Clean Water and Drinking Water State Revolving Funds

      The Clean Water and Drinking Water State Revolving Fund programs demonstrate a
true  partnership  between states, localities and the Federal government.   These programs
provide Federal financial assistance to states, localities, and Tribal governments  to protect the
nation's  water resources by  providing funds  for the  construction of  drinking  water and
wastewater treatment facilities.   The state revolving funds  are two important elements of the
nation's substantial investment in sewage treatment and drinking water systems which provides
Americans with significant benefits  in the  form  of reduced water pollution  and  safe drinking
water.

      EPA  will  continue to capitalize  the  Clean Water  State Revolving  Fund (CWSRF).
Through this program, the Federal government provides financial assistance for wastewater and
other water  projects, including nonpoint source, estuary,  storm water, and sewer overflow
B-2

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                                                   Appendix B: Infrastructure Finance
projects.  Water infrastructure projects contribute to direct ecosystem improvements by lowering
the amount of nutrients and toxic pollutants in all types of surface waters.

       The President's Budget includes $730 million in funding for the CWSRF.  More than $22
billion has already been  provided to capitalize the CWSRF, well over twice the original Clean
Water Act authorized level of $8.4 billion.  Total CWSRF funding available for loans since 1987,
reflecting loan repayments, state match dollars, and other funding sources, is approximately $52
billion,  of which more than $48 billion has been provided to communities as financial assistance.

       The dramatic progress made in improving the quality of wastewater treatment since the
1970s  is a national  success.  In 1972,  only 84  million people were served  by secondary or
advanced wastewater treatment facilities.   Today,  99 percent of community wastewater
treatment plants, serving 181 million people, use secondary treatment or better.

       The DWSRF will be self-sustaining in the long  run and  will help offset  the costs of
ensuring  safe drinking  water  supplies  and assisting  small  communities   in meeting their
responsibilities.  As  noted in the  May 2003 Report to Congress, since its inception in 1997, the
Drinking  Water  State Revolving Fund (DWSRF)  program has made available $7.9 billion to
finance 3,654 infrastructure improvement projects nationwide, with a return of $1.67 for every $1
of federal funds  invested.

       State  Flexibility between  SRFs:   The  Agency requests  continuation  of authority
       provided in the 1996 Safe Drinking Water Act (SDWA) Amendments which allows states
       to transfer an amount equal to  33 percent of their DWSRF  grants  to their CWSRF
       programs, or an equivalent amount  from their  CWSRF program  to their DWSRF
       program.   The transfer  provision gives states flexibility to address  the  most critical
       demands in  either program  at a given time.  The statutory transfer provision expired
       September 30, 2002.

       Set-Asides for Tribes:   To  improve public health and water quality in Indian Country,
       the Agency will continue  the  1 1/2% set-aside of the CWSRF for wastewater grants to
       tribes as provided in the Agency's 2002 appropriation. More than  70,000 homes in
       Indian country have inadequate  or  nonexistent wastewater treatment.  EPA and  the
       Indian Health Service estimate  that  Tribal wastewater infrastructure  needs  exceed
       $650.0 million.

Alaska  Native Villages

       The President's  Budget includes $15.0  million  for  Alaska  native  villages  for  the
construction of wastewater and drinking water facilities to address serious sanitation problems.
EPA will  continue to work with the  Department of Health and  Human  Services' Indian Health
Service, the State of Alaska, and local communities to provide needed financial and technical
assistance.
                                                                                   B-3

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Appendix B: Infrastructure Finance
Puerto Rico

       The President's Budget includes $4.0 million for the next design phase of upgrades to
Metropolitano's Sergio Cuevas treatment plant in San Juan, Puerto Rico. When all upgrades are
complete, EPA estimates that about 1.4 million people will enjoy safer, cleaner drinking water.
Goal 4: Healthy Communities and Ecosystems

Brownfields Environmental Projects

      The President's Budget includes a total of $120.5 million for brownfields environmental
projects.  EPA will award grants for assessment activities, cleanup, and revolving loan funds
(RLF).  Additionally, this includes cleanup of sites contaminated by petroleum or petroleum
products and environmental job training grants.

Mexico Border

      The President's Budget includes a total of $50.0 million  for water infrastructure projects
along the U.S./Mexico Border.  The goal of this program is to reduce environmental and human
health risks along the U.S./Mexico Border.  The communities along both sides of the Border are
facing unusual  human  health and environmental  threats because of  the lack of adequate
wastewater and drinking water facilities.  EPA's U.S./Mexico Border program provides funds to
support the planning, design and construction of high  priority water and wastewater treatment
projects along the U.S./Mexico Border.  The Agency's goal is to provide protection of people in
the U.S.-Mexico border area for health risks by increasing the number of homes connected to
potable water supply and wastewater collection and treatment systems by 25 percent by 2012.
B-4

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                                                           Appendix C:  Trust Funds
                                Trust Funds
                                 (Dollars in Millions)


Superfund
Response
Enforcement2
Management & Support
Other Federal Agencies
Transfers
Inspector General
Research & Development
Superfund Total
Base Realignment and Closure
LUST
Trust Funds Total:
FY 20051
President's Budget
$

$999
$174
$149
$11

$13
$36
$1,381

$73
$1,454
FTE

1,520
1,119
490
0

94
130
3,353
78
79
3,510
FY 20061
President's Budget
$

$890
$182
$154
$10

$14
$31
$1,279
$0
$73
$1,352
FTE

1,537
1,116
479
0

94
106
3,332
75
77
3,484
 Totals may not add due to rounding.
2 Includes $27 million for the Department of Justice in FY2006.

Superfund

       In FY 2006, the President's Budget requests a total of $1,279 million in discretionary
budget authority and  3,332 workyears for Superfund.  Currently, more than 94 percent of the
1,529 sites on the Superfund final National Priorities List (NPL) are either undergoing cleanup
construction or are completed.

       Of the total funding requested for Superfund Response, $599 million and 948 workyears
are for Superfund cleanups.  The Agency's Superfund cleanup program addresses public health
and environmental threats from uncontrolled releases  of hazardous substances.  The Agency
expects to demonstrate  significant  progress  in  reducing risk  to human health and  the
environment and increasing the number of construction completions at sites on the NPL.  In FY
2006, EPA and its partners anticipate completing 40 Superfund cleanups at NPL sites to
achieve the overall goal of 1,006 total construction completions by the end of 2006.
                                                                                 C-1

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Appendix C: Trust Funds
       Of the total funding requested, $182 million and 1,116 workyears are for the Superfund
Enforcement program.  One of the Superfund program's primary goals is to have responsible
parties pay for and conduct cleanups at abandoned or uncontrolled hazardous waste sites.  The
program focuses on maximizing all aspects of Potentially Responsible Party (PRP) participation,
including having PRPs initiate work at 70% of the new construction starts at non-Federal Facility
Superfund sites. EPA emphasizes fairness in the settlement process.

       The Agency has also been encouraging the establishment and use of Special Accounts.
These  accounts provide EPA with the ability to more  efficiently clean  up  sites  using funds
provided  by  responsible parties.  These  funds can  be  provided to PRPs as an  incentive to
perform clean up work they might not be willing to perform, or used by the Agency to fund clean
up.  The result is the Agency can clean up more sites, and allows the Agency to  preserve
appropriated  Trust Fund dollars for  other sites.   Where PRP negotiations and  previous
enforcement actions fail, EPA uses its appropriation to clean up sites and then seeks to recover
these costs from the PRPs.

       The remaining portion of the Superfund FY 2006 President's Budget is comprised of:

       Management and Support: The President's  Budget requests  $154 million and 479
       workyears for  management and support activities.  These resources support Agency-
       wide  resource  management and  control  functions  including:  essential infrastructure,
       contract administration, financial accounting and other fiscal operations.

       Funds for Other Federal Agencies:  Included in the Superfund request is $10
       million for Federal agency partners. The Agency works with several Federal agencies to
       perform essential services in areas where the  Agency does not  possess the specialized
       expertise.  Contributors include the United States Coast Guard,  the National Oceanic
       and Atmospheric Administration, the Department of the Interior,  the Federal Emergency
       Management Agency, and the Occupational Safety and Health Administration.

       Research and Development:  The President's Budget also requests $31 million and
       106 workyears to be transferred to Research and Development for innovative cleanup
       technology testing.

       Inspector  General:  The  President's  Budget  also requests  $14 million and  94
       workyears to be transferred to the Inspector General for program auditing.

       The Superfund research program is driven by program office needs to reduce the cost of
cleaning up Superfund sites, improve the efficiency of characterizing and remediating sites, and
reduce the scientific uncertainties for improved  decision-making at Superfund sites.

Base Realignment and Closure Act

       The FY 2006  President's Budget  requests 78 reimbursable workyears to  conduct  the
Base Realignment and Closure Act (BRAC) program.  Since 1993, EPA has worked with  the
Department  of Defense (DOD)  and the states' environmental  programs to make property
environmentally acceptable for transfer, while protecting human health  and the environment at
realigning or closing  military installations.   Between  1988 and 1995, 497  major military
installations representing the Army, Navy,  Air Force, and Defense Logistics Agency were slated
C-2

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                                                            Appendix C: Trust Funds
for realignment or closure.  Of these,  107 installations have been  designated as Fast-Track
sites.   The  Fast-Track program  strives to make parcels  available for reuse as quickly  as
possible, by transfer of uncontaminated or remedial parcels, lease of contaminated parcels
where cleanup is underway, or "early transfer" of contaminated property undergoing cleanup.  In
addition to EPA's responsibilities for the previous four rounds of BRAC, new responsibilities are
anticipated as part of BRAC 2005.

Leaking Underground Storage Tanks

       The FY 2006 President's Budget requests $73 million and 77 workyears for the Leaking
Underground Storage Tank (LUST) program. Approximately 84 percent of this will be used  for
state cooperative agreements and  support for  tribal cleanup.  One of the Agency's highest
priorities in the LUST program over the next several years is to address approximately 130,000
cleanups that have yet to be completed (as of September 2004), and to address LUST sites that
are difficult to remediate because they are contaminated by methyl tertiary butyl ether (MTBE)
and other oxygenates. In FY 2006 the Agency will continue efforts to complete cleanups under
the supervision of EPA and its state, local and tribal partners.
                                                                                  C-3

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                                              Appendix D: Budget Tables
               Environmental Protection Agency
       Summary of Agency Resources by Appropriation
                        (Dollars in Thousands)


Appropriation
Environmental Programs & Management
Science & Technology
Buildings and Facilities
Oil Spill Response
Inspector General
Hazardous Substance Superfund
Superfund Program
Research Transfer
IG Transfer
State and Tribal Assistance Grants
Leaking Underground Storage Tanks
Total Budget Authority
FY 2005
President's
Budget
$2,316,958
$689,186
$42,917
$16,425
$37,997
$1,381,416
$1,332,134
$36,144
$13,139
$3,231,800
$72,545
$7,789,244
FY 2006
President's
Budget
$2,403,763
$760,641
$40,218
$15,863
$36,955
$1,279,333
$1,235,192
$30,605
$13,536
$2,960,800
$73,027
$7,570,600
Note: Totals do not include offsetting receipts totaling -$30 million in FY 2005 and
-$50 million in FY2006.
                                                              D-l

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Appendix D: Budget Tables
                 Environmental Protection Agency
             Summary of Agency Resources by Goal
                            (Dollars in Thousands)
                                           FY 2005      FY 2006
                                        President's   President's
 Goal	Budget	Budget  Difference

 1-Clean Air and Global Climate Change      $1,011,026     $968,883    -$42,143


 2 - Clean and Safe Water                   $2,944,876   $2,813,028    -131,848


 3 - Land Preservation and Restoration         $1,805,991   $1,691,463   -$114,528


 4 - Healthy Communities and Ecosystems     $1,292,008   $1,336,248     $44,240
 5 - Compliance and Environmental
   Stewardship                             $735,343     $760,978     $25,635

 Total	$7,789,244   $7,570,600   -$218,644
Note: Totals do not include offsetting receipts totaling -$30 million in FY 2005 and
-$50 million in FY2006.
D-2

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                                               Appendix D: Budget Tables
                Environmental Protection Agency
             Summary of Agency Workforce by Goal
                              (Workyears)
Goal
1 -
2-
3-
4-
5-
Clean Air and Global Climate Change
Clean and Safe Water
Land Preservation and Restoration
Healthy Communities and Ecosystems
Compliance and Environmental Stewardship
FY 2005 FY 2006
President's President's
Budget Budget Difference
2,760
3,089
4,764
3,845
3,447
2,658
2,917
4,752
3,835
3,469
-102
-172
-12
-10
-78


Total
17,904
17,631
-273
FY 2005 President's Budget is the workforce ceiling. In FY 2006, the ceiling was
reduced to more closely reflect historical trends in FTE usage.
                                                                D-3

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Appendix D: Budget Tables
                   Resources by Program / Project
                             (Dollars in Thousands)
 Program / Project
                                                          FY 2005
                                                       President's
                                                          Budget
             FY 2006
          President's
              Budget
 Acquisition Management
 Administrative Law
 Alternative Dispute Resolution
 Audits, Evaluations, and Investigations
 Beach / Fish Programs
 Brownfields
 Brownfields Projects
 Categorical Grant:  Beaches Protection
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 (PWSS)
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
 Categorical Grant:
                 Brownfields
                 Environmental Information
                 Hazardous Waste Financial Assistance
                 Homeland Security
                 Lead
                 Nonpoint Source (Sec. 319)
                 Pesticides Enforcement
                 Pesticides Program Implementation
                 Pollution Control (Sec. 106)
                 Pollution Prevention
                 Public Water System Supervision
                 Radon
                 Sector Program
                 State and Local Air Quality Management
                 State and Tribal Performance Fund
Categorical Grant: Targeted Watersheds
Categorical Grant: Toxics Substances Compliance
Categorical Grant: Tribal  Air Quality Management
Categorical Grant: Tribal  General Assistance Program
                 Underground Injection Control (DIG)
                 Underground Storage Tanks
Categorical Grant: Wastewater Operator Training
Categorical Grant: Water Quality Cooperative Agreements
Categorical Grant: Wetlands Program Development
Central Planning, Budgeting, and Finance
Children & Other Sensitive Populations: Agency
Coordination
Civil Enforcement
Civil Rights / Title VI Compliance
Clean Air Allowance Trading Programs
 Categorical Grant:
 Categorical Grant:
 $43,660
  $4,929
  $1,890
 $51,136
  $3,238
 $28,002
$120,500
 $10,000
 $60,000
 $25,000
$106,400
  $5,000
 $13,700
$209,100
 $19,900
 $13,100
$222,400
  $6,000

$105,100
  $8,150
  $2,250
$228,550
 $23,000
 $25,000
  $5,150
 $11,050
 $62,500
 $11,000
 $37,950
  $1,500
 $20,500
 $20,000
 $86,383

  $6,801
$115,695
 $12,414
 $26,849
 $43,769
  $5,109
  $2,036
 $50,491
  $3,264
 $29,638
$120,500
 $10,000
 $60,000
 $20,000
$104,400
  $5,000
 $13,700
$209,100
 $18,900
 $13,100
$231,900
  $6,000

$100,600
  $8,150
  $2,250
$223,550
 $23,000
 $15,000
  $5,150
 $11,050
 $57,500
 $11,000
 $11,950
      $0
      $0
 $20,000
 $96,171

  $6,890
$120,135
 $12,530
 $27,587
D-4

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                                                     Appendix D: Budget Tables
                 Resources by Program / Project
                           (Dollars in Thousands)
Program / Project
Clean School Bus Initiative
Climate Protection Program
Commission for Environmental Cooperation
Compliance Assistance and Centers
Compliance Incentives
Compliance Monitoring
Congressional, Intergovernmental, External Relations
Criminal Enforcement
Drinking Water Programs
Endocrine Disrupters
Enforcement Training
Environment and Trade
Environmental Justice
Exchange Network
Facilities Infrastructure and Operations
Federal Stationary Source Regulations
Federal Support for Air Quality Management
Federal Support for Air Toxics Program
Federal Vehicle and Fuels Standards and Certification
Financial Assistance Grants / IAG Management
Forensics Support
                   Chesapeake Bay
                   Great Lakes
                   Gulf of Mexico
                   Lake Champlain
                   Long Island Sound
                   Other
Great Lakes Legacy Act
Homeland Security:  Communication and Information
Homeland Security:  Critical Infrastructure Protection
Homeland Security:  Preparedness, Response, & Recovery
Homeland Security:  Protection of EPA Personnel &
Infrastructure
Human Health Risk Assessment
Human Resources Management
Indoor Air:  Radon Program
Information Security
Infrastructure Assistance: Alaska Native Villages
Infrastructure Assistance: Clean Water SRF
Infrastructure Assistance: Drinking Water SRF
Geographic Program:
Geographic Program:
Geographic Program:
Geographic Program:
Geographic Program:
Geographic Program:
   FY 2005
President's
    Budget
   $65,000
  $109,420
    $3,949
   $29,463
    $9,610
   $85,179
   $48,350
   $41,896
  $100,948
    $9,037
    $4,058
    $1,723
    $5,031
   $27,762
  $439,298
   $24,302
  $103,332
   $27,764
   $64,467
   $23,262
   $16,911
   $20,817
   $21,195
    $4,478
      $955
      $477
    $6,790
   $45,000
    $4,320
   $11,209
   $56,399

   $20,544
   $36,832
   $48,553
    $6,066
    $4,697
   $40,000
  $850,000
  $850,000
  FY 20066
President's
    Budget
   $10,000
  $113,262
    $4,210
   $30,180
    $9,790
   $94,569
   $49,914
   $46,831
  $104,158
    $9,097
    $3,113
    $1,787
    $4,825
   $24,416
  $469,594
   $23,509
  $120,907
   $27,696
   $66,568
   $22,495
   $17,577
   $20,746
   $21,519
    $4,468
      $955
      $477
   $13,186
   $50,000
    $6,980
   $55,568
   $96,429

   $20,603
   $40,262
   $43,664
    $6,360
    $4,297
   $15,000
  $730,000
  $850,000
                                                                        D-5

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Appendix D: Budget Tables
                  Resources by Program / Project
                            (Dollars in Thousands)
 Program / Project
 Infrastructure Assistance:  Mexico Border
 Infrastructure Assistance:  Puerto Rico
 International Capacity Building
 IT / Data Management
 Legal Advice: Environmental Program
 Legal Advice: Support Program
 LUST/UST
 LUST Cooperative Agreements
 Marine Pollution
 National  Estuary Program / Coastal Waterways
 NEPA Implementation
 Oil Spill:  Prevention, Preparedness  and Response
 Pesticides: Field Programs
 Pesticides: Registration of New Pesticides
 Pesticides: Review / Reregistration of Existing Pesticides
 Pollution Prevention Program
 POPs Implementation
 Radiation: Protection
 Radiation: Response Preparedness
 RCRA:  Corrective Action
 RCRA:  Waste Management
 RCRA:  Waste Minimization & Recycling
 Reduce Risks from Indoor Air
 Regional Geographic Initiatives
 Regional Science and Technology
 Regulatory Innovation
 Regulatory/Economic-Management and Analysis
 Research: Air Toxics
 Research: Computational Toxicology
 Research: Drinking Water
 Research: Economics and Decision Science(EDS)
 Research: Endocrine Disrupter
 Research: Environmental Technology Verification (ETV)
 Research: Fellowships
 Research: Global Change
 Research: Human Health and Ecosystems
 Research: Land Protection and  Restoration
 Research: Pesticides and Toxics
 Research: NAAQS
   FY 2005
President's
    Budget
   $50,000
    $4,000
    $7,174
  $130,020
   $35,523
   $12,522
   $17,594
   $58,450
   $12,296
   $19,229
   $12,654
   $13,065
   $27,186
   $45,310
   $60,471
   $22,496
    $2,235
   $16,982
    $4,850
   $40,976
   $67,422
   $14,302
   $26,151
    $8,800
    $3,626
   $24,392
   $16,152
   $17,639
   $13,029
   $46,118
    $2,476
    $8,044
    $2,997
    $8,262
   $20,690
  $177,408
   $33,059
   $29,018
   $68,592
  FY 20066
President's
    Budget
   $50,000
    $4,000
    $6,450
  $126,574
   $37,150
   $13,088
   $18,303
   $58,677
   $12,279
   $19,446
   $12,440
   $12,344
   $24,683
   $43,962
   $60,497
   $19,990
    $2,806
   $16,273
    $6,212
   $42,710
   $68,728
   $14,376
   $24,328
    $8,862
    $3,643
   $25,021
   $16,713
   $16,387
   $13,832
   $45,690
    $2,645
    $8,705
    $3,203
    $8,327
   $20,534
  $169,632
   $38,347
   $29,753
   $71,452
D-6

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                              Appendix D: Budget Tables
Resources by Program / Project
         (Dollars in Thousands)


Program / Project
Research: SITE Program
Research: Sustainability
Research: Water Quality
Science Advisory Board
Science Policy and Biotechnology
Small Business Ombudsman
Small Minority Business Assistance
State and Local Prevention and Preparedness
Stratospheric Ozone: Domestic Programs
Stratospheric Ozone: Multilateral Fund
Superfund: Emergency Response and Removal
Superfund: Enforcement
Superfund: EPA Emergency Preparedness
Superfund: Federal Facilities
Superfund: Federal Facilities Enforcement
Superfund: Remedial
Superfund: Support to Other Federal Agencies
Surface Water Protection
Toxic Substances: Chemical Risk Management
Toxic Substances: Chemical Risk Review and Reduction
Toxic Substances: Lead Risk Reduction Program
TRI / Right to Know
Tribal - Capacity Building
US Mexico Border
Wetlands
TOTAL
FY 2005
President's
Budget
$6,928
$31,585
$46,810
$4,757
$1,707
$3,839
$2,282
$12,135
$5,840
$13,500
$201,088
$155,810
$10,091
$32,182
$10,044
$725,484
$10,676
$191,797
$9,514
$45,879
$11,083
$15,941
$10,642
$5,785
$19,753
$7,789,244
FY 2006
President's
Budget
$1,485
$23,188
$55,900
$4,881
$1,751
$3,911
$2,348
$12,328
$3,969
$13,500
$198,000
$164,258
$10,507
$31,611
$10,241
$599,396
$9,754
$194,802
$9,058
$44,523
$10,549
$14,754
$11,049
$5,975
$20,375
$7,570,600
                                               D-7

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                                                             Appendix E Acronyms
                  Environmental Protection Agency
                            List of Acronyms
AA       Assistant Administrator
ADR     Alternative Dispute Resolution
ARA     Assistant Regional Administrator
ATSDR   Agency for Toxic Substances and Disease Registry
B&F     Buildings and Facilities
CAA     Clean Air Act
CAFO    Concentrated Animal Feeding Operations
CAIR     Clean Air Allowance Trading Program
CARE    Community Action for a Renewed Environment
CAP     Clean Air Partnership Fund
CBEP    Community-Based Environmental Protection
CCAP    Climate Change Action Plan
CCTI     Climate Change Technology Initiative
CEIS     Center for Environmental Information and Statistics
CFO     Chief Financial Officer
CSI      Common Sense Initiative
CSO     Combined Sewer Overflows
CWA     Clean Water Act
CWAP    Clean Water Action Plan
DBP     Disinfectant By Products
DfE      Design for the Environment
DFAS    Defense Finance and Accounting System
EDP     Environmental Leadership Project
EJ       Environmental Justice
EPCRA   Emergency Preparedness and Community Right-to-Know Act
EPM     Environmental Programs and Management
ERRS    Emergency Rapid Response Services
ESC     Executive Steering Committee
ETI      Environmental Technology Initiative
ETV     Environmental Technology Verification
FAN     Fixed Account Numbers
FCO     Funds Certifying Officer
FASAB   Federal Accounting Standards Advisory Board
FIFRA    Federal Insecticide, Fungicide and Rodenticide Act
FMFIA    Federal Managers' Financial Integrity Act
FQPA    Food Quality Protection Act
GAPG    General Assistance Program Grants
GHG     Greenhouse Gas
GPRA    Government Performance and Results Act
HSWA    Hazardous and  Solid Waste Amendments of 1984
HPV     High Production Volume
HWIR    Hazardous Waste Identification Media and Process Rules
IAG      I nteragency Agreements
ICR      Information Collection Rule
IFMS     Integrated Financial Management System
IPCC     Intergovernmental Panel on Climate Change
                                                                            E-1

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Appendix E Acronyms
                  Environmental Protection Agency
                             List of Acronyms
IRM       Information Resource Management
ISTEA     Intermodal Surface Transportation Efficiency Act
ITMRA    Information Technology Management Reform Act of 1995-AKA Clinger/Cohen Act
LUST     Leaking Underground Storage Tanks
MACT     Maximum Achievable  Control Technology
MUR      Monthly Utilization Report
NAAQs    National Ambient Air Quality Standards
NAFTA    North American Free Trade Agreement
NAPA     National Academy of Public Administration
NAS      National Academy of Science
NDPD     National Data Processing Division
NEP      National Estuary Program
NEPPS    National Environmental Performance Partnership System
NESHAP  National Emissions Standards for Hazardous Air Pollutants
NOA      New Obligation Authority
NPDES    National Pollutant Discharge Elimination System
NPL      National Priority List
NPM      National Program Manager
NPR      National Performance Review
NPS      Non-Point Source
OAM      Office of Acquisition Management
OA       Office of the Administrator
OAR      Office of Air and  Radiation
OARM     Office of Administration and Resources Management
OCFO     Office of the Chief Financial Officer
OCHP     Office of Children's Health Protection
OECA     Office of Enforcement and Compliance Assurance
OEI       Office of Environmental Information
OERR     Office of Emergency and Remedial Response
OFA      Other Federal Agencies
OFPP     Office of Federal Procurement Policy
OGC      Office of the General Counsel
OIA       Office of International Activities
OIG       Office of the Inspector General
OMTR     Open market trading rule
OPAA     Office of Planning, Analysis and Accountability
OPPE     Office of Policy,  Planning and Evaluation
OPPTS    Office of Pesticides, Prevention and Toxic Substances
ORD      Office of Research and Development
OSWER   Office of Solid Waste and Emergency Response
OTAG     Ozone Transport Advisory Group
OW       Office of Water
PBTs     Persistent Bioaccumulative Toxics
PC&B     Personnel, Compensation and Benefits
PM       Particulate Matter
PNGV     Partnership for a New Generation of Vehicles
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                                                            Appendix E Acronyms
                  Environmental Protection Agency
                            List of Acronyms
POTWs    Publicly Owned Treatment Works
PPG      Performance Partnership Grants
PRC      Program Results Code
PWSS     Public Water System Supervision
RC       Responsibility Center
RCRA     Resource Conservation and Recovery Act of 1976
RGI       Regional Geographic Initiative
RMP      Risk Management Plan
RPIO      Responsible Planning Implementation Office
RR       Reprogramming Request
RWTA     Rural Water Technical Assistance
S&T      Science and Technology
SALC      Sub-allocation (level)
SARA     Superfund Amendments and Reauthorizations Act of 1986
SBO      Senior Budget Officer
SBREFA   Small Business Regulatory Enforcement Fairness Act
SDWA     Safe Drinking Water Act
SDWIS    Safe Drinking Water Information System
SITE      Superfund Innovative Technology Evaluation
SLC      Senior Leadership Council
SRF      State Revolving Fund
SRO      Senior Resource Official
STAG     State and Tribal Assistance Grants
STORS    Sludge-to-Oil-Reactor
SWP      Source Water Protection
SWTR     Surface Water Treatment Rule
TMDL     Total Maximum Daily Load
TRI       Toxic Release Inventory
TSCA     Toxic Substances Control Act
UIC       Underground Injection Control
LIST      Underground Storage Tanks
WCF      Working Capital Fund
WIF       Water Infrastructure Funds
WIPP      Waste Isolation Pilot Project
                                                                            E-3

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