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United States Environmental Protection Agency

 Office of the Chief Financial Officer (2732A)

   Publication Number: EPA-205-S-06-001

               February 2006

             www.epa.gov/ocfo
          Photo Credit: (front and back cover)
          Deborah Steckley, U.S. EPA

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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
   Program Projects	D-3
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.   This  budget  supports   the
Administration's commitment to achieving environmental results as we work to  develop
more efficient methods to conduct our mission. It also emphasizes the Administration's
desire  to diversify our energy  sources, promote  emission-reductions  technologies,
revitalize the Great Lakes, and improve the security of  our  Nation's drinking water
infrastructure.  Additionally,  this  budget   incorporates  new   responsibilities  and
requirements for some of  EPA's major programs, along with some new  provisions
mandated by the Energy Policy Act of 2005 (EPAct).

                  Annual Performance Plan and Budget

      The EPA's FY 2007  Annual Performance Plan and  Budget requests $7.3 billion
in discretionary budget authority and  17,560 Full Time Equivalents (FTE). This request
demonstrates the Agency's efforts to work with its  state, tribal, and local government
partners to  protect clean  air  and water,  preserve and restore  contaminated lands,
promote healthy  communities and ecosystems, assure compliance with environmental
regulations, and to secure the Nation's environmental assets through homeland security
programs such as Water Sentinel. Specific narratives for each program outline what the
resources accomplish  and FY 2007 priorities.  Human Capital and  EPA's workforce
levels are two overarching resource areas that  impact all programs and  projects. A
discussion of planning and management initiatives follows.

Human Capital
      In FY 2007 EPA will  continue to develop and  refine its  Human Capital strategies,
to ensure that the Agency  recruits, trains and retains a qualified  pool of  employees to
protect human health  and  safeguard the  air,  water and  land. EPA will continue  its
systematic approach to workforce planning throughout the Agency which includes:
setting targets, and closing competency gaps,  in mission critical  occupations (MCOs);
increasing emphasis  on innovative  and flexible recruitment and hiring strategies to
address personnel shortages within  MCOs; and improving the overall effectiveness of
the hiring process for the Agency's workforce.

      EPA has  met many important milestones in implementing its revised Human
Capital Strategy,  and the Human Capital Accountability Plan.  In FY 2005, EPA  National
Program Managers (NPMs) and Regional offices formally  adopted the Human Capital
Strategy, and developed office-specific Action Plans, using the Agency's Human Capital
strategy framework.  Results of the Agency's Action Plans will then be used to inform
the Human Capital strategic planning process, and to make  future strategic workforce
decisions.
                                                                            in

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Annual Performance Plan and Budget Overview
      In FY 2006, as  part  of  workforce  planning  efforts,  EPA  will  complete  an
assessment of current competency gaps for senior management, the first selected MCO
sample  group.  In  FY 2007, the  Agency will further its Workforce Planning efforts by
closing  competency  gaps  in senior leadership  positions and  developing  plans to
address the competency gaps in other MCOs.  The results will continue to be evaluated
through our Human Capital accountability reporting, ensuring a highly skilled,  diverse,
results-oriented workforce with the right mix  of technical expertise, experience,  and
leadership capabilities.

Workforce
      EPA  values its world class  workforce  and uses its  expertise to meet urgent
responsibilities across a broad range of national and local environmental issues.  In FY
2007  adjustments  to  EPA's workforce  management strategy will  help  better align
resources,  skills, and  Agency priorities.   A key step is aligning the total number of
authorized  positions and  actual  FTE utilization.  In FY 2007 EPA's estimated 17,560
FTE will work toward advancing the Agency's mission of protecting human health  and
the environment.
IV

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                                   Annual Performance Plan and Budget Overview
            Environmental Protection Agency's
                Resources by Major Category
                             (Dollars in Billions)
          O Operating Programs
          D Trust Funds
          E Infrastructure




$70-

$6.0 -
$5.0 -
f>4 0 -



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$7.6



$4.2

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$1.3

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$7.3


$4.3





$1.3
•
^^^s
%
sss^;
        1997  1998  1999  2000  2001  2002  2003  2004  2005  2006  2007
                                                                 PB
FYs 1996-2006 reflect EPA's final Enacted Operating Plan
FY 2007 reflects the President's Budget.
FY 2002 does not include $175.6 million provided for Homeland security in the Emergency Supplemental
Appropriations Act.

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              Environmental Protection Agency's
                    FY 2007 Budget by Goal

                     Total Agency: $7,315.5 Million
        Goal 3
         23%
                  Goal 5
                   10%
                                                        Goal 2
                                                         37%
          E3 Goal 1: Clean Air and Global Climate Change

          M Goal 2: Clean and Safe Water

          D Goal 3: Land Preservation and Restoration

          D Goal 4: Healthy Communities and Ecosystems

          ii Goal 5: Compliance and Environmental Stewardship
VI

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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.
                                  Resource Summary
                                           ($ in 000)
13% of Budget
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 **
FY 2006
Enacted
$583,162
$46,957
$16,666
$36,214
$111,091
$129,507
$923,596
FY 2007
President's
Budget
$596,460
$47,675
$21,625
$37,243
$110,298
$118,724
$932,025
Difference
$13,298
$718
$4,959
$1,029
-$793
-$10,783
$8,428
Workyears
2,655.3
2,652.0
-3.3
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

      EPA implements the Clean Air and Global Climate Change goal through  national
and regional  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 - including those addressing  particulate matter,
ozone, acid rain, air toxics, indoor air, radiation and stratospheric ozone depletion -
focus  on some of  the highest health  and environmental risks faced by the Agency.
These programs have achieved results.  According  to EPA's projections, every year,
                                                                          1-1

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Goal 1: Clean Air and Global Climate Change
state and  Federal  air pollution  programs  established  under the Clean Air  Act help
prevent tens of thousands of premature mortalities, millions of incidences of chronic and
acute illness,  tens  of thousands of hospitalizations and  emergency room visits, and
millions of lost work days.
                     Comparison of Growth Areas and Emissions
200%
                                                lit*''
Gross Domestic Product
                                                           Population
                                                       jjt  Aggregate Emissions
                                                            (Six Principal Pollutants)
                                    04
   According to EPA analyses, the benefits of implementing the Clean Air Act exceed costs by a factor
   of six or seven to one.  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 example, EPA
   estimates that every dollar the agency spends on voluntary climate change programs returns $75 in
   energy savings.

      The FY 2007 budget request includes funding for implementing provisions of the
Energy  Policy Act of 2005, which includes new responsibilities and  requirements in the
fuels and  diesel retrofit programs.  In the area of fuels,  EPA is required to  develop a
number of  new  regulations,  revise  several existing regulations,  revise models and
undertake  a  series of fuel-related  studies and  analyses.      This effort includes
promulgating  regulations for:  a  major  new  renewable fuels  program;  the  current
Reformulated  Gasoline  (RFC)   Program;  new  regulations  requiring  health  and
environmental  testing  of fuels; and in conjunction  with  DOE, conducting a study  on
Federal, state, and  local  fuel requirements  with recommendations on harmonization.
The  request includes funding for expanded  diesel retrofit  program  for a  variety of
sources.
1-2

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                                         Goal 1: Clean Air and Global Climate Change
      The  Clean Air Rules  are  a suite  of actions  that will dramatically  improve
America's air quality and will address the  transport of pollution across state borders.
The rules provide national tools to achieve significant improvement in air quality and the
associated  benefits of improved health, longevity and quality of life for all Americans.
Taken  together,  they will make significant  air quality  improvement  in years to come.
The Clean Air Rules encompass the following major rules:

•  Clean Air Mercury  Rule:  EPA issued the Clean  Air  Mercury Rule  (originally
   proposed as the Utility Mercury Reductions Rule) on March 15, 2005.' This rule will
   build on the Clean Air Interstate Rule (CAIR) to reduce  mercury emissions from coal-
   fired power plants, the largest remaining domestic source of human-caused mercury
   emissions.  Issuance  of the Clean Air Mercury Rule marks the  first time EPA has
   regulated mercury emissions from utilities, and makes the U.S. the first nation in the
   world to control emissions from this major source of mercury pollution.  Mercury is a
   persistent, toxic pollutant that accumulates in the food chain. While concentrations of
   mercury in the air are usually low,  mercury emissions can reach lakes, rivers and
   estuaries and eventually build up in fish tissue. Americans are exposed to mercury
   primarily by eating certain species of fish. However, close to 80  percent of the fish
   Americans buy comes from overseas, from other countries and from waters beyond
   our reach and control. The United States contributes just a small percentage of
   human-caused mercury emissions worldwide - roughly three  percent  with U.S.
   utilities responsible for about one percent of that.

•  NonRoad Diesel Rule: The Clean Air  Nonroad Diesel Rule, a  component of  the
   National Clean  Diesel Campaign  (NCDC), will improve  diesel  engine function to
   remove  emissions and innovative  diesel fuel refining  techniques to remove sulfur.
   The black puff of smoke seen  coming from construction  and other nonroad diesel
   equipment will be eliminated. Even with more stringent heavy-duty highway engine
   standards set to take  effect over the next decade, over the next twenty years millions
   of diesel engines already  in use will continue to  emit large amounts of nitrogen
   oxides and particulate matter, both of which contribute  to serious  public health
   problems.  The Diesel Retrofit work will be covered  under the Energy Policy Act of
   2005. These  problems are manifested  by  thousands of instances  of premature
   mortality, hundreds of thousands of asthma attacks, millions of lost work days, and
   numerous other health impacts. The NCDC works to reduce the pollution emitted
   from diesel engines across the  country through the implementation of varied control
   strategies  and the aggressive  involvement of national, state, and local partners.
   Other Air programs use voluntary approaches to mitigate risk, such as the Indoor Air
   program and the Climate Change program, described below.

•  Ozone Rule: The Clean Air Ozone Rules (dealing  with 8-hour ground-level ozone
   designation and implementation) designate those areas where air does not meet the
   health-based  standards for ground-level ozone and classify the  seriousness of the
   problem in each area. The Rules also set forth the schedule and minimum elements
   required in plans states must submit to  reduce the  levels of ozone in  areas where
   the ozone standards are not met. Ground-level ozone  is an air pollutant that causes
                                                                            1-3

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Goal 1: Clean Air and Global Climate Change
   human health problems, and  damages crops and  other vegetation.  It is a key
   ingredient of urban smog.

•  Fine Particle Rule:  The Clean  Air  Fine  Particle  Rules  (dealing with PM 2.5
   designations and implementation) designate  those areas where air does not meet
   the health-based standards for fine-particulate pollution and classify the seriousness
   of the problem in each area. An upcoming rule will also set forth the schedule and
   minimum elements required for state plans to reduce the levels of fine particulate
   matter in areas where the standards are not met.  Particulate Matter is  associated
   with increased hospital admissions and  emergency room visits for people with heart
   and lung disease as well  as increased work and school absences.  It  is also the
   major source of haze that reduces visibility  in  many parts  of the United States,
   including our National Parks.

      The Clean Air Interstate Rule and the Nonroad Diesel Rule, combined with other
existing state and Federal programs, including the Tier 2 clean  vehicles and gasoline
sulfur standards for cars and light trucks, the heavy duty diesel  engines and low sulfur
diesel rule, and the NOx  SIP  Call Rule to reduce interstate ozone, will bring well over
half of counties now monitoring non-attainment into attainment with the fine particle and
ozone standards.

      The Indoor Air Program characterizes the risks of indoor air pollutants to human
health, develops techniques for reducing those risks, and educates 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  using a variety  of approaches including
national public awareness,  media campaigns, as well as community-based outreach
and education.   EPA also uses technology-transfer to  improve the design, operation,
and maintenance of buildings - including schools, homes, and workplaces - to promote
healthier indoor air.  EPA also supports  a national radon (second only  to smoking as a
cause of lung  cancer) program that encourages  voluntary national, regional, state, and
tribal  programs and activities that support initiatives  targeted  to  radon testing and
mitigation as well as radon resistant new construction.

      For more than a decade, businesses and organizations have partnered with EPA
through voluntary climate protection programs to pursue common sense approaches to
reducing  greenhouse gas emissions and help in meeting the President's greenhouse
gas intensity goal. Voluntary programs  such as  Energy  Star and SmartWay Transport
have  contributed to increasing the use of energy-efficient products and practices and
reducing emissions of carbon  dioxide as well as  methane and other greenhouse gases
with  very high global warming   potentials.  These partnership programs  help spur
investment in  advanced  energy  technologies and the purchase  of energy-efficient
products  and create emissions reduction benefits that accrue over the lifetime of the
investment or product.
1-4

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                                         Goal 1: Clean Air and Global Climate Change
      EPA's  Domestic  Stratospheric  Ozone  Protection  Program  will  continue to
implement the provisions of the Clean Air Act and the Montreal Protocol on Substances
that Deplete the Ozone Layer (Montreal  Protocol), contributing to the reduction  and
control of ozone-depleting  substances (ODSs) in the U.S. and lowering health risks to
the American public associated with exposure to UV radiation.

      In FY  2007, EPA  will continue  upgrading the national  radiation  monitoring
system, thus  improving response time,  data dissemination, and population/geographic
coverage of the U.S.,  should there be an accidental or intentional release of radiation
either domestically or internationally. EPA will  also maintain readiness of deployable
monitors allowing for sampling density at locations near and downwind from radiological
incidents.   The Agency will continue to  enhance laboratory response capacity  and
capability to ensure a minimal level of surge capacity for radiological incidents.

International Activities
      EPA will continue to work  with other agencies  on the Methane to  Markets
program.   This program is an international initiative that focuses on  advancing cost-
effective, near-term methane recovery and use as a clean energy source.  The goals of
the program are to reduce global  methane emissions to enhance economic growth,
promote energy security,  improve the environment,  and reduce greenhouse  gas
emissions. Other benefits include improving mine safety, reducing waste, and improving
local air quality.  EPA is the lead agency for the Methane to Markets program.

      EPA will  also  participate in the newly-established Asia-Pacific  Partnership on
Clean Development and Climate.  The  Partnership aims  to promote development  and
transfer of cleaner, more efficient technologies that  can address  greenhouse  gas
mitigation and energy security - issues that are crucial not only to the region but the
entire world.  Through these programs,  EPA will work with international governments to
transfer American technology and voluntary program techniques. The Department of
State  is the lead agency for implementing this initiative.

Research
      EPA's air research provides the  scientific foundation for the Agency to fulfill its
responsibilities under the Clean Air Act, which helps make the air safe to breathe  and
protects human health and the environment.  The Agency  focuses  its  research on
National Ambient Air Quality Standards (NAAQS) pollutants and also studies hazardous
air pollutants (HAPs).

      In FY 2007, the Agency's  air research will continue to strengthen  the scientific
basis  for the periodic review and implementation of air quality standards. This research
is concentrated on particulate matter (PM), but includes other NAAQS pollutants.  PM
research is aligned with the ten priority research topics for  PM identified by the National
                                                                            1-5

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Goal 1: Clean Air and Global Climate Change
Academy of  Sciences (MAS).  The  MAS has conducted four reviews of EPA's PM
research since 1998 to identify  relevant,  high-priority  research  needs and monitor
research performance.

      In FY  2007,  the Agency's air toxics research  will complete selected ongoing
research efforts and begin transitioning toward  the  Multiple Air Pollutant Program
(MAPP) focus recommended by external review.  Air toxics research provides health
hazard and exposure methods, data, and  models that  enable the Agency to reduce
uncertainty in risk assessment.  It also produces tools that enable national, regional,
state, and local officials to identify and  implement cost-effective approaches to reduce
risk from sources of air toxics.

      Recognizing  that environmental  policy and regulatory decisions will only be as
good as the science upon which they are based, EPA makes every effort to ensure that
its science is  of the  highest quality and relevance, thereby providing the basis for sound
environmental results.   EPA uses the  Research and  Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
a) the use of research strategies  and plans, b) program review and evaluation by the
Board of Scientific Counselors (BOSC)  and the Science Advisory Board (SAB), and c)
peer review.

      In 2005, the BOSC evaluated the NAAQS research program to assess the quality
and  relevance of  its research  and the  program's  historical performance.1    The
subcommittee concluded that the program  has reduced scientific uncertainty and that
there was a  high degree of integration  between the program's in-house and external
research, which is usually conducted through competitive, peer-reviewed grants under
the Agency's  Science to Achieve Results (STAR) program.

      Research is guided by strategies and plans that are developed  with participation
from Agency  research programs'  major clients.  Strategies outline the research needs
and  priorities.  Multi-year research plans outline steps for meeting strategic research
needs and annual performance goals and measures for evaluating progress.

      Taken  together, these mechanisms  serve  to ensure that  EPA's research and
science remain  relevant,  of  high quality,  and contribute to superior environmental
performance.

      The Agency approaches its research programs' workforce planning in a manner
consistent  with its  human capital strategy.   Key elements  of this  strategy  include
working to develop and implement a  holistic approach to recruitment,  preserving  a
diverse  workforce that reflects a  wide  spectrum of viewpoints, and retaining existing
talent.
1 EPA, Office of Research and Development, Board of Scientific Counselors, Particulate Matter and Ozone
Research Program (Washington: EPA, 2005). Available at: 


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                                        Goal 1: Clean Air and Global Climate Change
Workforce
      Senior management supports Human Capital efforts to develop leadership and
technical skills for all employees supporting the Clean Air and Global Climate Change
Goal. Offices within the Goal are analyzing their knowledge management needs and
capabilities as an important  element  of the overall strategic succession plan.   This
analysis includes evaluating the skills of the current workforce and needs for the future
to ensure that EPA possesses  the skills  necessary to  meet  the challenges that  lie
ahead.

      The Agency approaches its research programs' workforce planning in a manner
consistent with its human capital strategy.  Key  elements of this strategy include
working  to  develop  and implement a  holistic approach  to  recruitment, preserving a
diverse workforce that reflects a wide spectrum of viewpoints,  and retaining existing
talent.

      EPA offices work together to enhance information and data access across the
offices, and better communicate EPA's message about air quality.

FY 2005 PARTS
   The following programs were assessed in 2005 though OMB's Program Assessment
Rating Tool (PART).

   •  National Ambient Air Quality Standards (NAAQS) Federal Program

   •  Air Quality Grants and Permitting Programs

   •  Indoor Air Environments

   •  National Ambient Air Quality Standards (NAAQS) Research (re-PART)
                                                                           1-7

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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.
( (
\\
1

^- — -1 W
37% of Budget
1 - Protect Human Health
2 - Protect Water Quality
3 - Enhance Science and Research
Goal 2 Total **
r^truuuiutr 01
($in

FY 2006
Enacted
$1,220,989
$1,791,520
$120,703
$3,133,212
jmiiiciiy
000)
FY 2007
President's
Budget
$1,177,458
$1,412,741
$141,143
$2,731,342


Difference
-$43,531
-$378,779
$20,441
-$401,870
Workyears
2,930.1
2,906.8
-23.3
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

      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.2  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, EPA now
protects 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
2 United States Environmental Protection Agency Office of Water. 1998. Clean Water Action Plan: Restoring and Protecting
America's Water. Washington, DC: Government Printing Office.
                                                                              2-1

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Goal 2:  Clean and Safe Water

50 industrial categories.3 In addition, sustained efforts to 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.4  Each year, more
than 180 million people visit the shore for recreation.   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.6  The
commercial fishing  industry,  which  also  requires clean water and  healthy  wetlands,
contributed  $28.6 billion to the economy  in 2001.7  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 Willamette 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.8

   Although there has been much progress on important economic, 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 2007, 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.  With the
help of states, tribes and other  partners, EPA  expects  to continue progress toward
protecting human health and improving water quality by 2008, including -
•  Water Safe to Drink:  increase the percentage of population served by community
   water systems that meet all applicable health-based drinking water standards from
   89% 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 %;
3 Code of Federal Regulations. Title 40, PARTs 405 -471. Revised as of July 1,2005
4 Travel Industry Association of America. Tourism for America, 11th Edition. Washington, DC: Travel Industry of America.
 Pew Oceans Commission. 2002. America's Living Oceans Charting a Course for Sea Change. Arlington, VA: Pew Oceans
Commission.
6 U.S. Fish and Wildlife Service. 2002. 2001 National Survey of Fishing, Hunting and Wildlife-Associated Recreation.
Washington, DC: Government Printing Office.
 National Marine Fisheries Service. 2002. Fisheries of the U.S. 2001. Washington, DC: Government Printing Office.
8 United States Environmental Protection Agency Office of Water. 1998. Clean Water Action Plan: Restoring and Protecting
America's Water. Washington, DC: Government Printing Office.


2-2

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                                                        Goal 2: Clean and Safe Water

•  Surface  Water  Meeting Standards:   address water  quality  problems  on  a
   watershed basis  so that water quality standards are fully attained in  water bodies
   identified by states as not meeting standards
•  Healthy Coastal Waters:  maintain or improve the overall health of each of the four
   major coastal ecosystems around the country, as measured by the National Coastal
   Condition Report.

      The clean and safe water goals are closely related to goals established  in Goal 4
of the Agency Strategic Plan regarding 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 2007  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 nearly  54,000
community water systems (CWSs)9 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 2007,  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.  EPA has identified  key activities
within five core program areas described  below that are critical to ensuring safe drinking
water.

Drinking  Water Standards
      During FY 2007,  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:
9 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.


                                                                               2-3

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Goal 2: Clean and Safe Water

   •  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;
   •  Begin to develop revisions to the Total Coliform Rule (TCR); and
   •  Consider additional protections of drinking water distribution systems.

Drinking Water Implementation
    During FY  2007, EPA will support state efforts  to meet existing and new drinking
water standards including the Cryptosporidium  (Long Term 2 Enhanced Surface Water
Treatment), Disinfection (Stage 2  Disinfectants and Disinfection Byproducts Rule), and
Ground Water Rules. In many states, EPA will be responsible for directly implementing
the early monitoring requirements under the Cryptosporidium and Disinfection 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  to
   states and tribes 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
SDWA, offers low interest  loans to help public water systems across the nation make
improvements and upgrades to their water infrastructure, or support other activities that
build system capacity. In FY 2007, the DWSRF program will provide an estimated 600
additional 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.
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                                                       Goal 2:  Clean and Safe Water

Protection of Sources of Drinking Water
      In FY 2007, 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 concept 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 2007.
•  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 2007, EPA will continue to focus on shallow wells
   (Class V) in source water areas.   EPA and the states will work to assure that all
   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
   determined to be in violation are addressed.

Assurance that Critical Water Infrastructure is Secure
      In FY 2007, EPA will continue to lead and support state and water utility efforts to
secure their water infrastructure from  terrorist threats and other intentional  harm. In
addition, due to its responsibilities under Homeland Security  Presidential Directives 7
and 9, EPA will support the water sector in implementing protective measures  and in
continuing to pilot a  new and innovative  drinking  water surveillance and  monitoring
program. In FY 2007,  EPA will establish, in selected cities,  additional pilot contamination
warning systems based upon intensive water monitoring  and other surveillance.  The
pilots will integrate  information from  contaminant-specific sampling  and  laboratory
analysis,  on-line  water  quality  monitoring,  public  health  surveillance,  customer
complaints and physical  security to  form  a  comprehensive contamination warning
system. The WaterSentinel program will prove the concept of an effective contamination
warning system, so that drinking water utilities, ideally of all sizes and characteristics,
could adopt such a system. The Agency will also provide critical tools,  training,  and
exercises that will help utilities detect, prevent, and respond to threats.

Fish and Shellfish Safe to Eat
      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 and  14 million  lake  acres  as  of 2003.10  The EPA  Strategic Plan  calls for
improving the quality of water and sediments to allow increased consumption offish and
shellfish.  EPA's national approach to meeting safe fish and shellfish goals is described
below.
10 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
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;  and
   •  Working to identify emerging contaminants to ensure that routes of fish exposure
      to new,  emerging contaminants are addressed early.

Safe Shellfish
      Success  in  achieving the shellfish  goals  relies  on implementation of  CWA
programs  that are focused on sources of pollution that cause 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 Total Maximum Daily Loads
(TMDLs), and revision of discharge permit limits can be applied to improve  conditions.

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.11   For FY  2007,  EPA's
national strategy for improving the safety of recreational waters will include these  key
elements:

Improve Beach  Monitoring and Public Notification
      A key component 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 (BEACH) Act.  In FY 2007, EPA expects that all Tier 1  public beaches
1' 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

will be monitored and managed under the BEACH Act 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
      Another important element 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 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.

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 2007 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 2007, 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.  EPA
will also  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 2007, EPA, in
partnership with states and tribes, will 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 2007 is the continued implementation of the Water Quality
   Standards (WQS)  and Criteria Strategy, developed in cooperation with states, tribes,
   and the public in 2003.  The Standards and Criteria Strategy prioritizes key strategic
   actions EPA  and  the states need to complete  in  order to strengthen the WQS

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Goal 2: Clean and Safe Water

   program to guide assessment and restoration efforts. This Strategy calls for EPA to
   continue  work  in  developing scientific "criteria  documents"  for  key chemical,
   microbial,  and water pollutants, including implementation protocols and methods.
   Key elements identified in the Strategy include developing nutrient criteria, adopting
   biological criteria, approving state WQSs 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 are essential to all aspects of the national program to protect and restore
   water yet, as documented in numerous  independent evaluations, Federal and  state
   water quality monitoring and  assessment  programs need  strengthening.    Top
   priorities for FY 2007 are state participation in efforts to develop statistically  valid
   monitoring  networks, continued EPA support of states  in  developing monitoring
   programs consistent with national monitoring guidance published in 2003, and  state
   support of the national water quality database.
•  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 2007,  EPA will continue to support states as they develop TMDLs to
   meet  court-ordered schedules and ensure  that  the  national  policy of TMDL
   completion  within  13 years of waterbody listing is met. EPA will continue to pursue
   innovative approaches  to help states and other partners develop and implement
   waterbody restoration plans as efficiently as possible.
•  Control Nonpoint Source Pollution on a Watershed Basis: Polluted runoff from
   nonpoint sources is the largest single remaining cause of water  pollution.  In FY
   2007, EPA will use grants to states under Section 319 of the CWA to support efforts
   to  manage  nonpoint pollution through  the  development and implementation  of
   watershed plans. Special emphasis will be placed on restoring impaired waters on a
   watershed basis.
•  Industrial Water Pollution Control:  EPA will develop regulations for industries
   where the risk to  waterbodies can be reduced and water quality  can be improved
   through wastewater  treatment. In FY 2007,  EPA will be working on regulations for
   the 4 industries  identified in  the 2004  effluent  guideline plan  and any additional
   industries that may be identified in the 2006 plan.
•  Strengthen NPDES Permit Program: The NPDES program requires point sources
   discharging to water bodies to have permits.  In FY 2007, 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.
   Additionally, EPA will finalize a rule that incorporates financial incentives for states
   that implement adequate NPDES fee systems.
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                                                     Goal 2: Clean and Safe Water

•  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 2007.   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 fostered the
watershed approach, focusing  on multi-stakeholder  and multi-program efforts  within
hydro-logically defined boundaries, as a better way to address water quality problems.
In FY 2007, 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.
•  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 2007, 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.

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 2007,  EPA's national strategy for improving the condition of coastal and
ocean waters will include the key elements listed below. The health of ocean and
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Goal 2: Clean and Safe Water

coastal waters and progress in meeting EPA's strategic targets will be tracked through
the National Coastal Condition Report.   In addition, the OSV BOLD,  EPA's ocean
survey vessel, will support monitoring and assessment needs in coastal regions.

Reduce Vessel Discharges
      EPA will focus on enhancing regulation of discharges of pollution  from vessels.
Key work for FY 2007 includes developing the proposal for wastewater  standards for
cruise ships operating  in  Alaskan waters and  cooperating  with the Department  of
Defense to develop discharge standards for all armed forces vessels.

Manage MPRSA Ocean Dumping Program (Including 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 2007,  EPA and COE will continue to focus resources  on improving how
disposal  of  dredged material is managed,  including  evaluating,  designating,  and
monitoring disposal 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 2007, EPA will assist the U.S. Coast Guard
in its efforts to develop ballast water discharge standards.  In addition, EPA will continue
efforts to target invasive species in coastal areas. Efforts addressing invasive species
on an international level are discussed below.

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 international standards necessary to address transboundary sources
of  pollution, pollution affecting  shared ecosystems, and the  introduction  of  non-
indigenous species through maritime shipping.  To reach these ends  we are seeking to
reduce the  introduction of invasive species to U.S.  waters by working  with the  U.S.
Coast Guard regarding  the International  Ballast Water Standards Convention under
MARPOL.  Another  emphasis  is  negotiation of  effective  international  standards
addressing  harmful  anti-foulants  and air emissions from ships.   Achievement of the
objective and strategic targets will enhance U.S. water quality, human health, and help
stabilize aquatic ecosystems in North America.
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                                                      Goal 2: Clean and Safe Water
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.

      In FY 2007, the drinking water research program will continue to 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  continue  providing
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.

      A new  investment  in  FY 2007  will  support research and  development  of
innovative approaches and technologies aimed at the growing gap in the nation's water
infrastructure requirements.   Aging and deteriorated  potable  water  and wastewater
infrastructure makes it  difficult to meet Clean Water Act and Safe Drinking Water Act
requirements, and  increases the potential for  waterborne  disease outbreaks.   The
purpose of this initiative will be to generate the science and  engineering to evaluate
promising innovative technologies and  techniques  to reduce  the  cost of operation,
maintenance, and replacement of aging  and failing wastewater and  potable water
conveyance systems and move towards sustainable water infrastructure.

      Other important areas of research in FY 2007 will include: 1) developing a web-
enabled  database of treatability information for chemicals and pathogens, providing
information to the Agency for prioritization  of contaminants and for Homeland Security
efforts; 2) reporting on public health benefits associated with improvements in drinking
water treatment  to  reduce microbial exposures; 3) conducting wetlands  research  to
develop  a  hierarchical  assessment  approach to address   the  objectives of  the
President's initiative to preserve and restore wetlands, and augment the current no-net-
loss  policy; and 4) performing a suite of epidemiological studies to establish a strong,
defensible link between rapid  water quality indicators and swimming-associated health
effects.

      Recognizing that environmental policy and regulatory decisions will only be as
good as the  science upon which they are based, EPA makes every effort to ensure that
its science is of the highest quality and  relevance, thereby, providing the basis for sound
environmental results.  EPA uses  the Research and Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
the use of research  strategies and plans, program review and  evaluation by the Board
                                                                           2-11

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Goal 2: Clean and Safe Water

of Scientific Counselors (BOSC) and the Science Advisory Board (SAB), and  peer
review.

      In 2005, the BOSC evaluated the Agency's drinking water research program to
assess the quality and  relevance of  its  research and the program's  historical
performance. The subcommittee concluded that the program has produced significant
research, which in turn has been used by the Agency's Office of Water (OW), states,
and industry to achieve outcomes.  The subcommittee also lauded the program's use of
the Agency's Science  to Achieve Results (STAR) program, which awards competitive
research grants through a rigorous peer review process.  The FY 2005 PART process
resulted in specific annual  and long term performance  measures that will  improve
quantification of outcomes.  Notably, the drinking water research program will measure
the long term utility of its products for key decisions by the Office  of Water.

      Strategies are tailored to specific research needs  and priorities.  The Agency
maintains multi-year research plans (MYP) that outline steps for meeting those strategic
research  needs  and  annual  performance goals  (APG)  and   measures (APM) for
evaluating progress.

      Taken together, these mechanisms serve to ensure that EPA's research and
science remain relevant,  of high  quality, and  contribute to superior environmental
performance.

      In order to  sustain  a viable  and credible workforce, the Agency approaches its
research programs' workforce planning in a manner consistent  with its human capital
strategy.   Key  elements of this strategy include working to develop and implement a
holistic approach  to recruitment, preserving  a  diverse workforce that reflects  a  wide
spectrum of viewpoints, and retaining existing talent.

FY 2005 Performance Assessment Rating Tool Evaluations (PARTs):
      The  following programs were assessed using the Program Assessment Rating
Tool (PART) for the FY 2005 PART process (final PART ratings will be included in the
President's Budget):
    • Oceans and Coastal Programs
    • Surface Water Protection Program
    • Section 106 Categorical Grants (Pollution Control)
    • Drinking Water Research
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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
( 1
V3
III
ir
^ 	 x
23% of Budget


FY 2006
Enacted
1 - Preserve Land $217,306
2 - Restore Land
$1
3 - Enhance Science and Research
Goal 3 Total **
$1
,383,140
$56,025
,656,471

FY 2007
President's
Budget
$242,091
$1,395,285
$52,259
$1,689,635


Difference
$24,785
$12,145
-$3,766
$33,164
Workyears
4,737.8
4,686.2
-51.6
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

      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 prevent and 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 or continues to be used
beneficially.

      EPA will work  to preserve and restore the land with the  most effective waste
management and cleanup methods available.  EPA uses a hierarchy  of approaches  to
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Goal 3: Land Preservation and Restoration
protect the land:  reducing waste  at  its  source,  recycling  waste,  managing  waste
effectively by  preventing  spills  and releases of  toxic materials,  and  cleaning  up
contaminated properties. The Agency especially is concerned about threats to our most
sensitive populations,  such as  children,  the elderly,  and  individuals with chronic
diseases,  and   prioritizes  cleanups accordingly.  Additional  information  on  these
programs can be found at:  www.epa.gov/superfund, http://www.epa.gov/epaoswer/hazwaste/ca/,
and http://www.epa.gov/superfund/programs/er/index.htm.

      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
nonhazardous waste.

      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.   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 ensures that EPA is adequately
prepared to minimize contamination and harm to the environment when spills do occur.

   The  following themes  characterize  EPA's  land program  activities  under Goal  3:
Revitalization;  Recycling,  Waste Minimization and  Energy  Recovery;  Emergency,
Preparedness  and  Response and  Homeland Security; and  implementation of the
recently-authorized Energy Policy Act of 2005 (EPAct).

•  Revitalization:  All of  EPA's cleanup  programs (Superfund Remedial,  Superfund
   Federal   Facilities   Response,  RCRA   Corrective  Action,  Brownfields,   and
   Underground Storage  Tanks) and  their partners are  taking  proactive steps  to
   accommodate  and  facilitate  the   cleanup  and  revitalization   of  contaminated
   properties.  Revitalizing these once productive  properties can provide numerous
   positive  impacts for communities such  as removing blight, satisfying the growing
   demand  for  land,  helping  limit   urban  sprawl,  fostering   ecologic  habitat
   enhancements, enabling economic development, and maintaining or improving
   quality  of life.    Efforts  are underway  to develop cross-program  revitalization
   measures that  will  enable EPA  to  capture a broader  array  of  accomplishments
   resulting from the assessment and cleanup of properties.

•  Recycling.  Waste  Minimization and  Energy Recovery:  EPA's strategy  for
   reducing waste generation and increasing recycling  is based  on:  (1) establishing
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                                           Goal 3: Land Preservation and Restoration
   and expanding partnerships with businesses, industries, tribes, states, communities,
   and  consumers;   (2)  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.

•  Emergency Preparedness. Response, and 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,
   including natural disasters  such as  Hurricane Katrina, working closely with other
   Federal agencies within the National Response Plan.

•  Implementing New Energy and Transportation Legislation:  EPA has a critical
   role  in  implementing  the  EPAct.  The EPAct contains numerous  provisions that
   significantly affect Federal  and state underground storage tank (LIST) programs. In
   FY 2007, EPA will provide assistance  to states to  help them meet  their new
   responsibilities, which include performing additional inspections, developing operator
   training requirements,  prohibiting fuel deliveries at non-compliant LIST facilities, and
   requiring secondary containment for  new and replaced tanks and piping or financial
   responsibility for tank installers and manufacturers.

Controlling Risks to Human Health and the Environment at Contaminated Sites
      EPA and its partners work to identify contaminated lands that pose significant
risks to human health and the environment.  Once identified, these contaminated lands
are cleaned up to levels sufficient to prevent and control  risks to human  health and the
environment and, where necessary, to return the land to productive use. EPA and its
partners follow four key steps to accomplish cleanups and control risks to human health
and the environment from contaminated lands:  assessment of risk, identification and
stabilization of contaminants,  selection of appropriate remedies to address risk posed
by contaminants, and implementation of remedies to reduce contamination to below
health-based risk levels.  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.  New tools, such as
Triad, a  process for flexible  and targeted  sampling, help provide a  more  focused
strategy  to characterize  contaminated lands.    Also,  through  an  Environmental
Management Systems approach, which  involves  a continuous cycle of  planning,
implementing,  reviewing,  and  improving practices at each site,  EPA  has improved
performance and reduced operating costs  of  remedies while  ensuring  continued
protectiveness.

      EPA has ongoing cleanup and property transfer responsibilities at some of the
Nation's most contaminated Federal properties, which range from realigning and closing
military  installations and  former military properties containing unexploded  ordnance,
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Goal 3: Land Preservation and Restoration
solvents  and other industrial chemicals, to Department of Energy sites  containing
nuclear waste.  EPA's Superfund Federal Facilities Response program helps Federal
and  local governments,  tribes,  states,  redevelopment  authorities and  the  affected
communities ensure contamination at Federal or former Federal properties is addressed
in a manner that protects human health and  the environment. For more information on
the   Superfund   Federal   Facilities  Response    program,    please   refer   to
http://www.epa.gov/fedfac.

      EPA  uses  a variety  of tools to  accomplish  cleanups,  including  permits,
enforcement actions, consent agreements, and Federal Facility Agreements.  Cleanup
programs at all  levels of government 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.  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, which means recognizing  tribal governments as the
most  appropriate  authorities for setting standards,  making  policy  decisions,  and
managing programs consistent with Agency standards and regulations.  EPA works with
its Federal, state, tribal, and local government partners to identify facilities and sites on
or adjacent to Indian country requiring attention and to monitor changes in priorities.

      Even though the Superfund program met its FY 2005 targets for a majority of its
existing performance measures, challenges remain for the coming years. The  program
has a number of projects ready for construction, while it also needs to  fund several
large, complex remedial projects at an optimal pace.  In  addition, as the program has
matured,  it has become necessary for the Agency to  devote more resources toward
post construction activities, including long-term remedial actions and five-year  reviews.
Therefore,  the  Agency proposes to redirect resources  from earlier  phase activities
toward construction in FY 2007.

      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 2007:

   •  Make 350 final site-assessment decisions under Superfund;

   •  Increase  the total number of  Superfund sites  where all identified unacceptable
      human exposures are controlled to at or  below health-based levels  for current
      land and/or groundwater use conditions by 10;

   »  Increase   the total  number  of  Superfund  sites  where the  migration  of
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                                           Goal 3: Land Preservation and Restoration
      contaminated  groundwater is under  control through  engineered  or natural
      processes by 10;

   •  Select final remedies at 25 Superfund sites on the National Priorities List (NPL);
   •  Complete construction of remedies at 40 Superfund sites on the NPL;

   •  Increase the percentage of high priority RCRA facilities with human exposure to
      controlled toxins from an estimated 82% in FY 2006 to 89%;

   •  Increase the  percentage  of high priority RCRA facilities with toxic releases to
      groundwater contamination to 75% from an estimated 68% in FY 2006; and

   •  Complete 13,000 leaking underground storage tanks cleanups.

   Enforcement authorities play a unique role under the Superfund  program:  they are
used to leverage  private-party resources to conduct a majority of the cleanup actions
and to reimburse the Federal government for cleanups financed by the Trust Fund. The
Superfund  program's "enforcement  first"  policy ensures  that sites that have viable
potentially responsible parties (PRPs) are cleaned up by those parties, allowing EPA to
focus appropriated resources on sites where  viable PRPs either do not exist or lack
funds or capabilities needed to conduct the  cleanup.  In  tandem with this approach,
various reforms have been implemented to increase fairness, reduce transaction costs,
and  promote   economic  development.    For  more  information  regarding  EPA's
enforcement    program    and   its   various   components,   please  refer   to
www.epa.gov/compliance/cleanup/superfund/.

      The  Agency also  has 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 may create an incentive for other PRPs at that specific site to perform work
they otherwise might not be willing to perform. Alternatively,  these funds may be used
by the Agency to  fund cleanup activities  if there are not known or viable PRPs.  As a
result, the Agency can get more sites cleaned up while preserving the appropriated
Trust Fund  dollars for sites without viable PRPs.

      In FY 2007, the Agency will continue to implement its "enforcement first" strategy.
It 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  whenever possible.  The Agency  will  also
continue its efforts to establish and maximize  the use of Special Accounts to facilitate
clean up.

      By continuing to pursue cost recovery settlements, the program  promotes the
principle  that polluters should perform  or pay for cleanups, preserving appropriated
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Goal 3: Land Preservation and Restoration
Superfund  Trust  Fund resources for site remediation where  there  is no  known  or
viable PRP.  The Agency's expenditures are 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.  The Department  of  Justice  supports EPA's Superfund
Enforcement program through negotiations and judicial actions to compel PRP cleanup
and litigation to recover Trust Fund monies spent.

Encouraging Land Revitalization
      Land  is  one  of  America's  most  valuable  resources.   However,  where
contamination presents a  real or perceived threat to  human health and the environment,
options  and even interest in future use of that  property may be limited.  To address
these common scenarios, 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, support reasonably anticipated future land use
options  and provide greater economic and social benefits.

      To help achieve its land revitalization goals, EPA works with external partners to:
(1)  promote land  revitalization by ensuring that  current  use or reuse options  are
considered explicitly in the evaluation  of cleanup  options; (2)  commit the necessary
resources to address current use or reuse as  a top priority  in cleanup decisions; (3)
develop new  comprehensive policies  and programs to address unintended  cross-
jurisdiction   and  cross-program  barriers  to the  protective  reuse  of contaminated
properties;  (4) promote protective, long-term  current  use  or reuse of properties; (5)
promote sustainable reuse to prevent further contamination and indirect environmental
problems that may  result from some reuse (sustainable reuses include open spaces,
energy  efficient buildings,  low impact design, smart growth community developments,
and  wildlife habitats); (6) develop and promote a land revitalization  research  agenda
that  improves our  understanding of and  our ability to  use protectively  or reuse
contaminated or potentially contaminated properties; (7) build partnerships to leverage
knowledge,  expertise, and  resources in  the  revitalization  of properties  (including
government-to-government partnerships at the local, state, tribal, and Federal levels as
well  as  partnerships with non-government, private,  and community organizations); (8)
expand  community  capabilities  through  improved  public involvement  tools  and
information systems on contamination,  cleanup, reuse, and long-term  stewardship; (9)
expand  and promote educational and training  programs that encourage and  provide
needed  tools to  achieve  land revitalization; and (10)  promote  various approaches to
measure and report the status and impacts of the collective efforts to revitalize.
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                                             Goal 3: Land Preservation and Restoration
      For more information concerning EPA's land revitalization efforts, please refer to
http://www.epa.gov/swerrims/landrevitalization/.

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, 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 grew steadily from 88 million to 236 million tons
between 1960 and 2003.12  In FY  2007, 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.
12 US Environmental Protection Agency. Municipal Solid Waste in the United States: 2003 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 April 5, 2005.



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Goal 3: Land Preservation and Restoration
   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 2007:

   •  Maintain the national average MSW generation rate at no  more than 4.5 pounds
      per person per day; and
   •  Divert 85.2 million tons of MSW from landfills 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.  Important goals of the RCRA program include strong state
partnerships, the authorization of states for all portions of the RCRA hazardous waste
program,  including regulations addressing  waste management issues contained in
permits, and results-oriented state oversight.

      EPA works with states, tribes and Intertribal  Consortia to prevent,  detect,  and
correct leaks into the environment from Federally-regulated 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, like
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.   In FY 2007, EPA will make grants  to  states  and  tribes under Section
2007(f)(2) of  the  Solid Waste Disposal  Act (SWDA) for  underground storage tank
detection,  prevention and correction programs and grants  or cooperative  agreements
for new activities authorized  by the Underground Storage Tank Compliance Act of 2005
(USTCA),  which was enacted as Title XV, Subtitle  B of the  EPAct, that are not
otherwise  provided for in Section 2007 of the SWDA.  Due to authority limits, EPA will
not use STAG funds for leaking underground storage tank cleanup  activities that are
authorized by Section 205 of the Superfund Amendments  and  Reauthorization  Act of
1986, even if those activities are also authorized by the USTCA.
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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 2007:

   •  Prevent  releases  from  RCRA  hazardous  waste  management  facilities  by
      increasing the number of facilities with permits or other approved controls by 2.4
      percent over the FY 2006 level.   At the end of  FY 2005, 90 percent of the
      facilities had permits or other approved controls;13

   •  Increase the percentage of  LIST facilities in significant operational compliance
      with both release detection and release  prevention (spill, overfill, and corrosion
      protection)   requirements to  67  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 2005, confirmed releases averaged 10,844. The
      annual number of confirmed releases in FY 2005 was 7,421).

Emergency Preparedness, Response, and Homeland Security
      EPA  will  continue to improve  its  emergency preparedness  and  response
capability, including homeland security capabilities.   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 Plan
(NRP), EPA evaluates and responds to thousands of releases annually. EPA's  primary
role in the NRP is  to serve as the Federal On-Scene  Coordinator (OSC)  for spills and
releases  in the inland  zone.  As a result of NRP 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 Clean Water  Act, as amended  by  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.
13 This goal currently tracks approximately 2,460 hazardous waste management facilities subject to permitting requirements.
This baseline was updated for FY 2006.
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Goal 3: Land Preservation and Restoration
      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, expand  training for
response personnel and continue to  participate in multi-agency training and exercises.
EPA also will 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 improvement.   Application of this
information and other  data will advance the  Agency's  state-of-the-art  emergency
response operations.

      EPA's 25-year-old Emergency Response and Removal program is supported by
EPA  OSCs,   the   Environmental   Response  Team   (ERT)  and   the  National
Decontamination Team  (NOT), who respond to small and large scale response actions,
disasters and  terrorist  incidents.  Responding to these incidents  is one of  EPA's
traditional responsibilities.

      The  FY 2007 President's Budget request includes funding  to enable EPA to
improve the capabilities of EPA's responders through procurement of state-of-the-art
equipment, to organize a new Environmental Laboratory Response Network (eLRN)
program to strengthen such lab capabilities, expand participation for pre-deployments to
national security special events, and develop decontamination protocols.

      In FY 2007,  EPA will continue to implement  its  homeland security plans and
procedures and to meet its  responsibilities in  order  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 multiple
targets 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 2007:

   •  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;

   •  Complete 315 removal actions (excluding actions at Federal facilities and actions
      by PRPs  with enforcement instruments);
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                                            Goal 3: Land Preservation and Restoration
   •  Inspect or conduct exercises or drills at approximately 200 oil storage facilities
      required to have Facility Response Plans; and

   •  Respond to 300 oil spills.

Implementing New Legislation
      EPA has a critical role to play in implementing the EPAct.  The EPAct contains
numerous provisions  that significantly affect Federal and state underground  storage
tank (LIST) programs.  The EPAct requires that EPA and states strengthen tank release
and prevention programs, such as:  mandatory inspections every three years, operator
training, prohibition  of delivery for non-complying facilities, secondary containment or
financial responsibility for tank installers, and various compliance reports.  The EPAct
imposes very strict deadlines on EPA and states; EPA is required to develop numerous
grant guidelines before the FY 2007 grant cycle and states are required to develop their
first  new  requirements  for  tank owners by February  2007.14   EPA  must develop
regulations and guidance that states must adopt, and must develop a strategy for USTs
in Indian Country to bring them into compliance and to clean up leaks. EPA is currently
working with  state, tribal, and  industry partners to  develop and implement the various
requirements.

Enhancing Science and Research to Restore and Preserve Land
      The FY 2007 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 providing the science to accelerate  scientifically defensible and cost-
effective decisions for  cleanup  at complex sites in accordance with the CERCLA.

      In  FY  2007, research  will  focus on contaminated  sediments,  ground  water
contamination, site characterization, and technical  support to specific sites.  Reducing
uncertainties  in  the  assessment  of contaminated  sediments  and developing and
evaluating  remedial options will be the focus of this research  theme.   Ground  water
research will continue  to develop  applications for  permeable  reactive barriers and
address  fate and  transport  and   treatment  methods  for  contaminants.    Site
characterization  and sampling methods will  continue to support site specific statistical
and analytical applications.  The technical support  centers will  continue to provide site
specific assistance on technical issues.  Oil  spill research will address fate and effects
of non-petroleum oil and dispersion effectiveness.  Underground storage tank research
will address fate  and transport  issues for fuel components and remediation methods.

      Multimedia decision-making  and materials management constitute the two  major
areas of research under the  RCRA in  FY 2007,  as the Agency works toward identifying
releases  to inform  proper facility management.  Multimedia  research continues  to
  For more information, please visit http://frwebgate.access.gpo.gov/cgi-
bin/getdoc.cgi?dbname=109_cong_public_laws&docid=f:publ058.109.pdf and scroll to Title XV - Ethanol and Motor Fuels,
Subtitle B Underground Storage Tank Compliance, on pages 500-513 of the pdf file.
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Goal 3: Land Preservation and Restoration
advance  multimedia modeling and  uncertainty/sensitivity  analysis methodologies that
support core RCRA program needs as well as emerging RCRA resource conservation
needs which include beneficial reuse issues (e.g., electronic waste recycling and waste-
derived products).  Materials  management research will provide technical reports and
technical  support on methods to improve industrial and municipal waste management.
Materials management research will evaluate  landfill caps,  containment  technologies,
as well as leachate issues and hard to treat wastes.

      Recognizing that environmental  policy and regulatory decisions will only be as
good as the science upon which they are based, EPA makes every effort to ensure that
its science is of the highest quality and relevance, thereby  providing the basis for sound
environmental  results.   EPA uses  the  Research and Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
a) the use of research  strategies and plans, b)  peer review, and c) program review and
evaluation by the Board  of Scientific Counselors (BOSC)  and the Science  Advisory
Board (SAB).

      In  2005, the BOSC evaluated the Land Research Program  to assess the quality
and relevance of its research and the program's historical performance. The BOSC will
report its  findings to the Agency in the 2nd quarter of 2006.

      Research is guided by research strategies and plans, which are developed with
participation from major clients. The strategy outlines the research needs and priorities.
The Agency also maintains  multi-year research plans that outline steps for meeting
strategic  research needs, and annual performance goals  and measures for evaluating
progress.

      Taken together, these mechanisms  serve  to ensure  that  EPA's research and
science remain relevant, of high  quality,  and contribute  to superior environmental
performance.

      In  order to  sustain a viable  and credible workforce, the Agency approaches its
research  programs' workforce planning in a manner consistent with its human capital
strategy.  Key  elements of this strategy include working  to develop and implement a
holistic approach to recruitment, preserving a diverse workforce that reflects a wide
spectrum of viewpoints, and retaining existing talent.

FY 2005 PARTS
   The following programs were assessed by OMB's Program Assessment Rating Tool
(PART) for the  FY 2005 PART process (final PART ratings  will be included in the
President's Budget):

   •  Superfund Federal Facilities  Response

   •  Oil Spill
   •  Superfund Emergency Response and Removal (rePART).
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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)
^_^
16.8% of Budget
1 - Chemical, Organism, and Pesticide
Risks
2 - Communities
3 - Ecosystems
4 - Enhance Science and Research
Goal 4 Total **
Workyears *
FY 2006
Enacted
$399,054
$272,119
$193,886
$384,263
$1,249,321
3,812.5
FY 2007
President's
Budget
$376,875
$247,874
$199,421
$404,764
$1,228,934
3,834.2
Difference
-$22,179
-$24,245
$5,535
$20,501
-$20,388
21.7
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

      EPA must bring together a wide variety  of programs, tools,  approaches and
resources  to promote healthy communities and ecosystems.  Achieving the Agency's
goal of protecting, sustaining or restoring healthy communities and ecosystems requires
strong partnerships with Federal, state, tribal and local governments.  Programs under
this goal focus on reducing  chemical and pesticide risks,  addressing  high  priority
ecosystem risks, and supporting local community priorities.

      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.
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Goal 4: Healthy Communities and Ecosystems
      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  by assessing efficacy of  antimicrobial products
used  against  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 1,700 new chemicals and 40 products
of biotechnology that enter the marketplace.  Americans also 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.  EPA also
plans a  dual  approach to address  the possible health risks associated with nanoscale
materials.  EPA  is  currently  reviewing pre-manufacture notices for new  nanoscale
materials under TSCA to ensure protection of human health and the environment. For
new and existing chemical nanoscale  materials,  EPA is  developing  a stewardship
program.

      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).

      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.15
15 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 (CWA).  Many  waters  with important
aquatic values may no longer be covered by  CWA Section 404 protections.  However,
in FY 2007, EPA and the Army Corps of Engineers (COE) will continue to strive towards
EPA'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 program promotes the clean up, reuse, and redevelopment of
brownfields sites through its assessment, revolving loan fund, and cleanup grants.  The
program also  supports research, training, and technical  assistance efforts;  clarifies
liability issues; and promotes Federal,  state and local partnerships toward the goal of
putting contaminated land back  into productive use.

      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.

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 and  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.

      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
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Goal 4: Healthy Communities and Ecosystems
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.
*TOT;ERANrE REASSESSMENT STIMMARY BREAKDOWN
Category
Organophosphates
Carbamates
Organochlorine
Carcinogen
High Hazard Inert
Other
TOTALS
*EPA's
Tolerances
to be
Reassessed
1691
545
253
2008
5
5219
9721
Total
Reassessed as
of 12/19/05
1147
317
253
1530
5
4578
7830
Tolerance Index. Tolerance Trackine Systems and
Tolerances
Remaining
544
228
0
478
0
641
1891
Percentage
Reassessed
67.83%
58.17%
100%
76.2%
100%
87.70%
80.50%
Tolerance Reassessment Database.
      EPA plans to emphasize the continuation and further development of programs
for the review of new and existing chemicals. The Agency will also 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.  Inventory Update Reporting Data, due for
submission in 2006, will provide  the Agency with valuable manufacturing, processing
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                                        Goal 4: Healthy Communities and Ecosystems
and use information on many chemicals in commerce. EPA will make special efforts to
assess the potential risks of newly developed substitutes for  a  chemical 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.  In addition, the Agency will  continue to evaluate and
implement perfluorooctanoic acid (PFOA) risk management actions as  needed and will
continue developments of information collection and chemical  testing rules to address
the needs of the Agency and others.

      The lead program  is developing a comprehensive program for the management
of renovation, repair and  painting activities involving lead based paint hazards and will
continue to 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.  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 and will continue to work with the U.S.  Navy to develop a national approval
for the reefing of ships.

      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 (as 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.  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),  require EPA to 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.
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Goal 4: Healthy Communities and Ecosystems
Water Programs
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 84 percent16 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 people. While significant progress
has been made to restore the environmental health of the Great Lakes, work remains.

In FY 2007, EPA will continue efforts to protect and restore the Great Lakes, and will
work with State, local, and Tribal partners, using the Collaboration's strategy as a guide.
The President's May 2004 Executive Order directed EPA to establish the Great Lakes
Interagency Task Force to coordinate the Federal effort to improve water quality in the
Great Lakes.   EPA is working  with partners to  restore the chemical, physical, and
biological  integrity of the Great  Lakes ecosystem, by implementing Clean Water Act
core programs and  other actions  including the clean up  and de-listing  of Areas of
Concern (AOC), and a reduction  in PCB concentrations in lake trout and walleye.  Some
of the key activities identified in the Strategic  Plan17 include preventing and controlling
invasive species,  cleaning up Areas of Concern through the Great Lakes Legacy Act. In
support of the Strategic Plan  in FY 2007, 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 (e.g., extensive sediment contamination) they also face problems
   common to most other water bodies 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 2007, EPA will
   expedite work to address contaminated sediment.   EPA anticipates that FY 2007
   funding will result in cleanup of a half million cubic yards of contaminated sediments.

•  Critical  Ecosystem  Issues:   In FY 2007 EPA  will lead the development of
   management  recommendations  to mitigate the underlying  causes of the annual
   occurrence  of high rates of oxygen depletion  which lead to low dissolved-oxygen
   levels in Lake Erie in the so-called "dead zone."  EPA  will also lead Canadian and
   U.S. Federal agencies and the academic community in exploring causes of the rapid
   decline of the Diporeia population in the Great  Lakes.  The dead zone occurrence
16 Great Lakes National Program Office. Basic Information, http://www.epa.gov/glnpo/basicinfo.html
17 Great Lakes Regional Collaboration. December 2005. A Strategy to Restore and Protect the Great Lakes-Action Plan.
Available online from http://www.glrc.us/



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                                        Goal 4: Healthy Communities and Ecosystems
   and  the  Diporeia decline are both problems  believed to be  related  to  invasive
   species.

      In FY 2006 EPA will issue Great Lakes Legacy Act program regulations, which
will  outline  how resources  will  be used and  projects  prioritized  to  remediate
contaminated sediments in the Great Lakes AOCs.

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.
•  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.   The  program  has sufficient
   resources to carry  out currently  approved projects  and provides $25 million to
   address new needs in FY 2007.
•  Build Partnerships:  In  FY 2007, 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.

National Estuary Program (NEP)/Coastal Watersheds
      The  goal  of  this  program is to restore the physical,  chemical, and biological
integrity of the Nation's estuaries and coastal watersheds by protecting and enhancing
water quality and living resources.

      In FY 2007, EPA will  undertake various efforts in support of coastal watershed
protection and restoration.  In the area of  monitoring, we will continue to work with our
Federal and state  partners  on  the  National  Coastal  Condition Report,  the only
statistically-significant measure of U.S. water quality on  a nationwide basis.  We will
also  support estuarine monitoring efforts using such tools as the Ocean Survey Vessel
Bold, EPA's research vessel.  EPA will also support coastal watersheds  to enhance
their efforts to address threats to the health of  estuaries and coastal waters through
various  means,  including  providing  technical  assistance  on financing estuary  and
coastal  protection  projects,  developing  and disseminating tools  and  resources for
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Goal 4: Healthy Communities and Ecosystems
localities on planning for growth,  and continuing to play a lead role in  the five-year
reassessment of the Action Plan for Reducing,  Mitigating, and Controlling  Hypoxia in
the Northern Gulf of Mexico.

        The NEP  is EPA's flagship watershed protection effort.  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 2007  is to  continue supporting  the efforts to implement
Comprehensive Conservation and  Management Plans in all 28 NEP  estuaries.  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 2007, EPA has set a goal  of protecting or restoring an
additional 75,000 acres of habitat within the 28 study areas. Finally, EPA will work with
NEPs in FY 2007 to provide more focused support for several priority areas, including
invasive species, nutrient over-enrichment, and coastal growth.

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 2007
is described below:
•  Meeting the President's goal of restoring or creating three  million wetland acres will
   be  accomplished  primarily  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
   supports the goal through  EPA's regulatory  programs,  including the CWA  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  by  integrating  wetlands protection into  other  EPA programs such as
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                                        Goal 4:  Healthy Communities and Ecosystems
   Section 319, State Revolving Fund,  NEP; working with the 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.
•  Building upon the analysis of existing mitigation data base systems,  the COE, EPA,
   USDA,  DOI,  and  NOAA is in  the  process of establishing  a shared  mitigation
   database. Utilizing the shared database,  the Agencies will provide an annual public
   report card on compensatory mitigation to complement reporting of other wetlands
   programs.  The COE 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 COE
in meeting performance measures for compensatory mitigation for unavoidable impacts.
The Agency is also working closely with the COE to  develop and implement wetlands
and barrier island  restoration projects along the Gulf Coast to help ensure an improved
level of protection from hurricanes.

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.

      While there are a number of measures used by the Chesapeake Bay Program, a
key measure of  success, which integrates  both  water quality and essential  aquatic
habitat,  is  the restoration of submerged aquatic vegetation (SAV).   An  additional
measure of environmental  improvement  in the  Bay  is  the  reduction in nitrogen,
phosphorus, and sediment entering the bay.

      To  achieve improved  water quality needed to  restore  submerged  aquatic
vegetation, the Chesapeake Bay Program  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 by 2010.  Key elements of state strategies to
achieve  these reductions  include:  the implementation  of advanced treatment of
wastewater to reduce nutrient discharges, the use  of a range of management practices
to  reduce nutrients and sediments from farms, and  the restoration and  protection of
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Goal 4: Healthy Communities and Ecosystems
riparian forests that serve as a buffer against sediment and nutrient pollution that enters
waterways from the land.

The targets in EPA's plan for nutrient and sediment reductions are scientifically based
and also  reflect a multi-state consensus.  The  Program plans to conduct  a full re-
evaluation in 2007.   In  the meantime,  the Program  continues  to  pursue program
strategies to  accelerate  nutrient-sediment reduction,  including  state  adoption  of
enforceable  bay-specific  water quality standards  by the end  of  summer 2005, an
innovative new basin-wide NPDES permitting strategy for nitrogen and phosphorus, and
development  of a strategy  to address  excess animal  manure and poultry litter for
Chesapeake Executive Council endorsement in 2005. Attention is also being given to
financing issues.

Protecting the Gulf of Mexico
        The Gulf of  Mexico basin has been called "America's  Watershed."  Its U.S.
coastline is 1,630  miles long.  Thirty-three major rivers  feed into the Gulf, as well as
drainage from 31 states and drainage from Mexico.  One sixth of the U.S. population
now lives in Gulf Coast states. For FY 2007,  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 effective
   implementation of core clean water programs, including discharge permits, nonpoint
   pollution controls,  wastewater treatment, and 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 20 percent 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  address this  problem will  need to focus on both controlling 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 2007 will include:
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                                        Goal 4: Healthy Communities and Ecosystems
         •  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.


Multidisciplinary Programs

Children's Health
      EPA's  Children's Health  program reduces risks to children from a  range of
environmental  hazards.  The  Agency  builds  partnerships  and  effective  working
relationships  with other Federal agencies, health care providers, and  international
organizations  to  incorporate children's environmental  health concerns  into  their
programs  and activities.  In  addition, work  is underway to  reduce  exposure of older
adults to environmental hazards.  Efforts focus on building capacity, providing tools and
information for better decision-making, and engaging in outreach activities.

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 400 RMP audits in  FY 2007.  EPA will also continue to work to transition the
RMP  submission system  to  allow  complete  Internet-based  risk management plan
submission.

      Information collected from the local emergency planning committees (LEPCs)
indicating  how  they have  incorporated appropriate  facility  risk information  into their
emergency preparedness  and  community  right-to-know programs will  serve as  a
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Goal 4: Healthy Communities and Ecosystems
baseline from which EPA will track progress toward this strategic goal in later years.
EPA will also continue an initiative to improve and enhance emergency preparedness
and prevention in tribal communities.

Brownfields
      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 2007:
   •   Assess 1,000 Brownfields properties
   •   Clean up 60 properties using Brownfields funding
   •   Leverage $900 million in cleanup/redevelopment funding
   •   Train 200 participants, placing 65 percent in jobs

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 07,  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.
Community Action for a Renewed 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
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                                        Goal 4: Healthy Communities and Ecosystems
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.

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.

Environmental Justice
      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.  EPA's  environmental
justice program will continue education, outreach, and data availability 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 which  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 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
                                                                           4-13

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Goal 4: Healthy Communities and Ecosystems
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)),  cooperation  with  multinational  organizations  like  the  Commission  for
Environmental  Cooperation, the World Trade  Organization and the World Health
Organization,  and contribution  to  a set of measurable end  points that will show
reduction in pollutants of concern and that will reduce exposure to our citizens along the
US borders,  and the reduction of pollutants at their origin thereby reducing the level of
pollutants in the global atmosphere.

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 healthy  people,
communities,   and ecosystems,  EPA will engage in high  priority,  multidisciplinary
research efforts in areas related to human health, ecosystems, mercury, global change,
pesticides and toxics, endocrine disrupters,  computational toxicology and Homeland
Security.

      The Agency is also proposing an investment in nanotechnology research, and an
investment to promote transparency of and participation in EPA assessments (as part of
the IRIS process) in FY 2007.

      In FY 2007, the human health research program will continue research efforts on
cumulative risks. Research will focus on risk intervention and prevention strategies that
ultimately  reduce  human risk  associated with exposures  to  single  and  multiple
environmental stressors,  including reducing chemical  exposure in schools. Also, the
Agency's Human Health Risk Assessment Research Program will complete 16 human
health assessments of high priority chemicals for interagency review or external peer
review, and deliver final air quality criteria documents  for lead, which will  serve as the
basis for the  EPA staff paper supporting the National Ambient Air Quality Standards
(NAAQS).

      In order to balance the growth of human activity  with the need to protect the
environment,  it is important to 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.  To meet these objectives,
4-14

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                                        Goal 4: Healthy Communities and Ecosystems
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. The
Agency will continue to develop monitoring  methods and decision support systems to
improve  its  ability to  identify probable causes of  ecological  impairment in streams.
Diagnosis and forecasting models previously  developed will be applied  to provide a
better scientific basis for ecosystem protection and restoration.

      With the completion of critical research  efforts in FY2006 in areas such as the
development of  tools and approaches  for the  prioritization  of  endocrine disrupter
screening and  testing  needs,  the computational toxicology research  program  is
positioned to expand efforts in  FY2007  to  focus on  four  key  areas: information
technology, chemical prioritization  and categorization tools, system biology models, and
cumulative risk assessment. In the pesticides and  toxics  research program, research
designed to  provide updated tools for asbestos risk assessments will be  completed  in
2007.

      In  FY 2007, an  increased investment  in  nanotechnology research will accelerate
efforts to generate the underlying  science needed to better understand and predict the
potential  implications  of nanoparticle releases to the  environment and  their  fate,
transport, and potential  effects  on human  health  and ecosystems.  Nanotechnology
research  will also  identify how  nano-scale  science  can  be responsibly used for
beneficial environmental applications, such as improved sensors and new control and
remediation technologies.

      In  addition, resources in FY 2007 supporting health risk assessments will elevate
and help  to ensure acceptance of Agency assessments through identification and airing
of scientific issues at an early stage in assessment development, improve  transparency
in how issues are resolved, and enhance the quality, objectivity, utility, and integrity of
health assessments that result from advice  and review from the National Academy of
Sciences.

      Recognizing that environmental policy and regulatory decisions will only be as
good as the science upon which they are based, EPA makes every effort to ensure that
its science is of the highest quality and relevance, thereby providing the basis for sound
environmental results.  EPA uses the Research and  Development (R&D) Investment
Criteria of quality, relevance, and performance  in its decision-making processes through
the use of research strategies and plans, program  review and  evaluation  by the Board
of Scientific  Counselors (BOSC)  and the Science Advisory Board  (SAB), and  peer
review.

      In  2005,  the BOSC evaluated the  endocrine  disrupters,  human  health,  and
ecological research  programs to assess the quality and relevance of  the research and
the  programs'  historical  performance.    The endocrine  disrupters  subcommittee
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Goal 4: Healthy Communities and Ecosystems
concluded  that the program's  goals  and scientific questions are appropriate  and
represent an understandable and solid framework for setting research priorities.  The
human health subcommittee concluded that the program's research is of high  quality
and appropriately focused.   In addition,  the ecological subcommittee  stated that the
potential benefits of the program to the public are evident and clearly articulated.  The
subcommittees  also  reviewed each  program's external research,  which is usually
conducted through competitive,  peer-reviewed grants under the Agency's Science  to
Achieve Results (STAR) program.

      Research  is guided by a number of research strategies and plans, which are
developed  in  concert with internal  and external partners.  Strategies are tailored  to
specific research needs and priorities.  The Agency maintains multi-year research plans
(MYP) that outline  steps for meeting  those  strategic  research  needs  and annual
performance goals and measures for evaluating progress.

      Three major  research  programs in  this Goal have undergone  OMB's  PART
evaluation through FY 2005.  They  include endocrine disrupters research, ecosystems
protection research and human health research. Climate change research  is tentatively
scheduled for PART review in FY 2006.

      Lastly,  workforce  planning   is  essential to sustaining  a  viable  and credible
research program. The Agency approaches its research program workforce planning in
a manner consistent with its  human  capital strategy.  Key elements of this strategy
include working to develop and implement a holistic approach to recruitment, preserving
a diverse workforce  that reflects a wide spectrum of viewpoints, and retaining existing
talent.

FY 2005 PARTS
   The following programs were assessed by OMB's Program Assessment Rating Tool
(PART) for the FY 2005 PART process:
   •  Lead Risk Reduction
   •  Endocrine Disrupters (re PART)
   •  Ecological Research (re PART)
   •  Human Health Research
   •  Oceans and Coastal Programs
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                                   Goal 5:  Compliance and Environmental Stewardship
  Goal 5:  Compliance and Environmental Stewardship

Strategic  GOdl:    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% 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 2006
Enacted
$485,147
$120,976
$73,552
$63,141
$742,815
FY 2007
President's
Request
$491 ,033
$112,735
$74,631
$55,140
$733,540
Difference
$5,887
-$8,240
$1,079
-$8,001
-$9,276
Workyears
3,495.3
3,480.5
-14.8
* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

      In  FY 2007,  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.  In FY 2007, the enforcement program
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Goal 5: Compliance and Environmental Stewardship


will also carry out actions outlined in the Domenici-Barton EPAct, providing compliance
assistance  to owners and operators of Underground  Storage Tanks.  The EPA will
protect human health and the environment by increasing compliance with existing laws
and regulations. Innovation and environmental stewardship will  be encouraged.  In
addition,  EPA  will  assist  Federally  recognized  tribes in assessing  environmental
conditions  in  Indian  Country,  and  will  help  build  their capacity  to  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 2007  EPA will
identify and address significant environmental and public health problems, strategically
deploy its resources, and make use of integrated approaches to reduce noncompliance
and achieve strong environmental protection outcomes.

      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 the Agency to 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 meaningful  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.  EPA  also  helps  to  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
5-2

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                                Goal 5: Compliance and Environmental Stewardship


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.  In FY 2007, EPA will support the regulated universe by
working to assure that requirements are clearly understood. 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 investigations and on-site inspections, and perform  monitoring,
sampling and emissions testing.  FY 2007 Compliance Monitoring activities will be
both  environmental media-  and  sector-based.   The  traditional  media-based
inspections complement 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.   The National Enforcement and Compliance
Assurance Program  will utilize statistically valid noncompliance information to select
and evaluate National Priorities.

Enforcement:  The Enforcement  Program addresses violations of environmental
laws, to ensure violators come into  compliance with Federal laws and regulations. In
FY 2007,  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 violators do not
realize  an economic benefit from  non-compliance, and also seeks to deter future
violations;  one way the enforcement program carries this out is by working with the
Department  of Justice  (DOJ) on enforcement  of all  environmental  laws   and
regulations.  In FY 2007,  EPA will continue to implement its National Compliance
and Enforcement Priorities, which  address the most widespread types of violations
that also pose the most substantive health and environmental risks.  The National
Compliance   and   Enforcement   Priority  list will   use the  statistically  valid
noncompliance information developed by the  Compliance Monitoring program.  Also
in  FY 2007, the Enforcement Program will carry out actions outlined in the Domenici-
Barton   EPAct,  providing  compliance  assistance  to owners  and  operators of
Underground Storage Tanks.

Auditing and Evaluation Tools:  Maximum  compliance requires the active efforts
of the regulated community to police itself. Evaluation of self-reporting will occur in
order  to  understand the effectiveness and accuracy of  such  self-reporting.
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Goal 5: Compliance and Environmental Stewardship


   Throughout FY 2007, EPA will continue to investigate options for encouraging self-
   directed audits and disclosures. We 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 evaluating the  effectiveness  of  the innovative
   approaches  developed  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
      Through  pollution  prevention  integration, 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.

•  Partnering with Businesses and Consumers:  In 2007, 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 provide enhanced guidance to the  Federal
   building community on  model green  construction specifications and 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.
5-4

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                                     Goal 5: Compliance and Environmental Stewardship
G/J
 ij i "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            T-»        f~*       j
                       Media    y            Resources Conserved
                 Water^-—i
                     \22    ^\           • 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:   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.

    Reducing Impacts in the Electronics Lifecycle:  EPA is focusing FY 2007 efforts
    to address key environmental impacts in the electronics lifecycle. End-of-life impacts
    of used and obsolete  electronics  are  part of an increasing and complex waste
    stream  that poses enormous environmental  management problems.    Almost 3
    million tons of consumer electronics  entered the municipal waste stream in 2003, up
    from  2 million in 2001.   This includes personal computers, TVs, other video and
    audio products,  telephones,  fax machines, printers,  and modems.    Electronic
    products contain hazardous materials. Monitors, circuit boards, batteries, and other
    electronic  components  contain lead, mercury, brominated flame retardants  (BFRs)
    and cadmium.

    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.  The importance of tracking outcomes from  P2 grants
    has been  reinforced by adding key P2 environmental outcome targets to program
                                                                               5-5

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Goal 5: Compliance and Environmental Stewardship


   guidance reporting measures. The P2 grant management system will be enhanced
   by the incorporation of P2 metrics  that capture quantifiable environmental results
   within individual work plans and 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).  In FY 2007, EPA, states, tribes, and territories will continue to re-engineer
   data systems so that information previously not available or not easily available can
   be exchanged using common data standards. By the end of 2007 all fifty states and
   approximately ten tribes will have established nodes on the Exchange Network and
   will be mapping data for sharing with partners and submission to EPA.

Promoting Environmental Stewardship and Innovation
      In  FY 2007, EPA will promote environmental stewardship, an ethic that goes
beyond  the  minimum compliance  with  environmental regulations.  The Agency will
accomplish this through education, and  by providing incentives, tools and  technical
assistance to states, tribes, communities and businesses.  EPA will accomplish its  goals
using  the next generation  of voluntary  environmental  protection  strategies,  which
emphasize  results rather than process, and promote business practices  that are both
environmentally  and  economically sustainable.     EPA will  work  to  achieve  a
performance-oriented  regulatory system  that  allows flexible strategies to achieve
measurable results; environmental stewardship that maintains sustainable development
and places pollution prevention first; and a culture of creative environmental problem
solving that emphasizes collaboration and results-driven work.  EPA will  focus on five
areas under its innovation strategy:

   •  Promote  innovative environmental leadership  in business, one that  uses new
      ideas, creative  partnerships, and  sound analysis  to grow their business and
      protect the environment;

   •  Instill the  ethics of environmental  stewardship and sustainability in  business
      practices;
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                                   Goal 5: Compliance and Environmental Stewardship


   •  Promote  stronger   facility-level   environmental   management,   including
      Environmental Management Systems (EMSs);

   •  Improve overall environmental performance within high-priority business sectors;
      and

   •  Improve program efficiency through increased evaluation and measurement.

Innovation  Grant Program:  EPA  will  expand  the  Innovation Grants  program  to
encourage states and tribes to develop and test innovative protection strategies, such
as permit streamlining and environmental management systems.  These grants promote
the use of innovative technologies for better environmental results, and demonstrate
measurable efficiencies in environmental management.

Performance Track: Performance Track is one of EPA's most successful and fastest
growing  voluntary  programs-successful   because  it  uses  positive  incentives  to
recognize and  reward private and  public facilities  that demonstrate  environmental
stewardship, and strong environmental performance beyond current requirements.  In
FY 2007, EPA will move to significantly increase the number of facilities participating in
the program, with closer coordination and  involvement of  states.   EPA will expand
activities to recruit facilities to participate in Performance Track and  provide assistance
to those facilities. In FY 2007 Performance Track members will collectively achieve an
annual reduction of:  1.1 billion gallons in water use; 8.4 million MMBTUs in energy use;
20,000 tons  in materials use; 360,000 tons of solid waste; 42,000 tons of air releases;
and 10,000 tons in water discharges.

Sector-based Stewardship: In  FY 2007  EPA will continue  to  work  with twelve
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 unnecessary  regulatory  burden
and test innovative strategies.

Small Business Ombudsman: EPA will continue to support
the Small  Business  Ombudsman who serves  as   EPA's
gateway  and leading advocate for  small  business  issues,
partnering with state Small  Business Assistance  Programs,
and hundreds of small business trade associations, to reach  servingsn.aii Businesses and ihe Enrolment
out to  the small business community.  These partnerships
provide the information and perspective EPA needs to help small  businesses reduce
waste  and materials use,  and  to  achieve their environmental  goals.   This  is a
comprehensive program  that  provides networks, resources,  tools  and forums for
education and advocacy on behalf of small businesses.
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Goal 5: Compliance and Environmental Stewardship


Building Tribal Capacity
      Since adoption of the EPA Indian Policy in 1984 EPA has worked with tribes on a
government-to-government basis, to affirm the Agency's trust responsibility to federally
recognized tribes. Under Federal environmental statutes, the Agency has responsibility
for assuring human health and environmental protection in Indian Country.   EPA has
worked to establish the internal infrastructure and organize its activities in order to  meet
this responsibility.  EPA's American Indian Environmental program goes a step further
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 2007,
   using Tribal General Assistance Program (GAP)  grant resources  EPA will provide
   approximately 517  Federally recognized tribes and Inter-Tribal Consortia access to
   resources to hire at least one person working in their community to  build  a  strong,
   sustainable environment for the future; for these  purposes, the universe of  eligible
   entities is 572. Tribal communities can  then assess environmental conditions on
   their lands, and build an environmental  program tailored to their specific  needs.
   EPA will also continue to develop environmental  and public  health outcome-based
   measures to quantify programmatic success.
•  Provide Access to Environmental Information:  EPA will provide the information
   needed by tribes to meet EPA and tribal environmental priorities. At  the same  time,
   we will ensure that the Agency has the ability to view and analyze the conditions in
   Indian  Country, and the impacts of EPA  and tribal actions and programs in Indian
   Country. 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 Program 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 2007, EPA will integrate two
   additional existing  Agency data  systems within the Tribal  Program Enterprise
   Architecture and encourage other agencies to adopt common  tribal  codes.
•  Implementation of Environmental Goals: The Agency will provide opportunities
   for the implementation of environmental programs by tribes,  or directly by EPA, as
   necessary.

      In addition to assisting in the building  of Tribal environmental capacity, another
key role of the environmental presence workforce in Indian Country is to alert EPA of
immediate  public health and ecological threats,  so EPA can work  with the tribe to
respond quickly and effectively.
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                                   Goal 5: Compliance and Environmental Stewardship


Pollution Prevention and Enforcement Research
      EPA has developed and evaluated tools and  technologies to monitor, prevent,
control, and clean up pollution throughout its history.  During the 1970s and 1980s, the
agency  emphasized controlling or  remediating environmental dangers.  Since the
Pollution  Prevention Act of 1990, 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.

      EPA's pollution prevention work promotes innovative  new technology, assessing
the  interaction  of  stressors  threatening   human   and  environmental  health,  and
developing cost-effective responses  to those stressors (R&D Criteria:  Relevance).  In
FY 2007, research will continue to explore the principles governing sustainable systems
and the integration of social,  economic,  and environmental objectives in environmental
assessment and management.  In a broader context, the program will focus not just on
the industrial  sectors, but on all  decision-makers in areas critical to environmental
stewardship (e.g., municipal sector and  ecosystems)  such as testing the effectiveness
of a  market-based  incentive  as  a tool  to manage  storm water run-off in  urban
watersheds.  Efforts within environmental economics and decision science research are
designed to improve EPA's decision  making, cost-benefit analyses, and implementation
strategies (R&D Criteria:  Performance).    Research will  focus  on benefit transfer
methods  and better understanding of and design for practical trading programs.  These
two areas are high priorities for EPA's program offices and  have broad applications to
the Agency's regulatory work.

      Also  in  FY  2007, the innovative student  design competition award  program
known as P3 (People,  Prosperity, and  Planet) will  support up to 50 student design
projects from around the country.   This  awards program encourages technological
innovation in a wide range of activities. This competition promotes innovative thinking in
sustainable approaches toward research,  development  and design  of  scientific and
technical solutions to environmental problems. In FY 2006 several awards have already
moved from  the  design  stage to business  plan  and  may  soon  be ready for
commercialization (R&D  Criteria: Relevance; Performance).

      Recognizing environmental policy and regulatory decisions  will only be as good
as the science upon which they are  based,  EPA makes every effort to ensure that its
science is of the highest quality and relevance, thereby, providing the basis for sound
environmental results.  EPA uses the Research and Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
a) the use of research strategies and plans, b) peer review,  and c) program review and
evaluation by the Board of Scientific Counselors (BOSC)  and the Science  Advisory
                                                                            5-9

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Goal 5: Compliance and Environmental Stewardship


Board  (SAB).   EPA's  Science Advisory Board (SAB), an independently  chartered
Federal Advisory Committee Act (FACA) committee, annually conducts in-depth reviews
and analyses of  EPA's Science and Technology  (S&T) account and  other science
activities.  The SAB provides its findings to the House Science Committee of Congress
and reports them to EPA's Administrator.

      Research  is guided by research strategies and plans, which are developed with
participation from our major clients (R&D Criteria: Quality; Relevance). The strategy
outlines research needs and priorities. The Agency also maintains multi-year research
plans  (MYP) that outline steps  for meeting  strategic research needs, and annual
performance goals and measures for  evaluating  progress.  Taken together, these
mechanisms serve to ensure EPA's  research and science remain  relevant,  of high
quality, and contribute to superior environmental performance.

      In order to sustain a  viable and credible workforce,  the Agency approaches its
research programs' workforce planning  in a manner consistent with  its human capital
strategy.   Key elements of this strategy include working to develop  and implement a
holistic approach  to recruitment,  preserving a diverse  workforce that reflects a wide
spectrum of viewpoints, and retaining existing talent.

FY 2005 PARTS
    No programs within Goal 5 were assessed by OMB's Program Assessment Rating
Tool (PART) in FY 2005.
5-10

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Appendixes

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                                                 Appendix A: Categorical Grants
              Categorical Grants Program (STAG)
                               (Dollars in Millions)
                    2001
                    Ena.
2003
Ena.
2004
Ena.
2005
Ena.
2006   2007
Ena.  Request
      In FY  2007,  the President's Budget requests  a total of $1,089  million for
22  "categorical"  program  grants  for  state,  interstate  organizations,   non-profit
organizations,  intertribal consortia,  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 2007, EPA will continue to offer flexibility to state and Tribal governments
to manage  their environmental programs as well as to  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.

      To improve both of these processes, EPA will develop a standardized template
that all states will  use to develop and submit their  state grant agreements.   This new
template will include clear linkages  to EPA's Strategic Plan and long-term and annual
                                                                           A-1

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Appendix A: Categorical Grants


goals, as well as consistent requirements for regular performance reporting.  It also will
allow for meaningful comparisons between various states' past and planned activities
and performance, making progress more visible and programs more transparent.

HIGHLIGHTS:

State & Local Air Quality Management, Radon, and
Tribal Air Quality Management Grants
      The FY 2007 request includes $204.2 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 and Tribal Air Quality  Management grant funding is
requested in the amount of $185.2 million and $10.9 million,  respectively.  These funds
provide  resources  to state, local, and Tribal air  pollution  control agencies 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.  In FY 2007, EPA will place particular emphasis on implementing the  Clean
Air  Interstate Rule  (CAIR) and developing 8-hour ozone state implementation  plans
(SIPs), which states must submit to EPA in FY 2007.  States also will begin work on fine
particle  (PM-2.5)  SIPs,  and  will  incorporate regional  haze  reduction strategies,
developed by regional planning organizations,  into their  Regional Haze  SIPs.  States
must submit both the PM and Regional Haze SIPs to EPA in  January 2008. Lastly, this
request includes $8.1  million  for Radon  grants,  to provide funding  for state  radon
programs. In FY 2007, EPA expects 190,000 additional homes to have radon reducing
features  (90,000 mitigations  and  100,000 new  homes with radon resistant new
construction), bringing the cumulative number of U.S.  homes with  radon  reducing
features to 2.4 million.

Pesticide Enforcement, Toxics Substance Compliance, &  Sector Program Grants
      In FY 2007, the President's Budget includes $26.0 million to build environmental
enforcement partnerships with states  and tribes  and to  strengthen their  ability  to
address environmental and public health threats. The enforcement state grants request
consists of $18.7 million  for Pesticides Enforcement, $5.1 million for Toxic Substances
Enforcement Grants, and $2.2 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
A-2

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                                                  Appendix A: Categorical Grants


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 2007 Budget  includes $13.0  million for Pesticides Program
Implementation grants.  These resources will assist states and tribes to implement the
safer use  of  pesticides,  including: worker protection;  certification and training of
pesticide applicators; protection of endangered species;  Tribal pesticide programs; and
integrated pest management and environmental stewardship. In FY 2007,  EPA plans to
complete a cumulative  96  percent of all Reregistration Eligibility Decisions, which often
include  changes  to  allowable use patterns, for pesticides already  in  the  market.
Pesticides  Program  Implementation  Grants help state programs  stay  current with
changing requirements.

Lead Grants
      The  President's  FY 2007 Budget includes $13.6 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 so that
states,  tribes and the  Agency can better  target remaining areas of high risk.  In
FY 2007, EPA expects to reduce the number of child lead poisoning cases  by 17,000.

Pollution Prevention Grants

      The  FY 2007 request includes $6.0 million for Pollution Prevention grants. The
program provides grant funds to deliver technical assistance to small and medium-sized
businesses. The goal  is to assist businesses and industries with identifying improved
environmental strategies and solutions for reducing waste  at the source. The program
demonstrates that source reduction can be a cost-effective way of meeting  or exceeding
Federal and state regulatory requirements.  In FY 2007, EPA is targeting  a cumulative
30 percent reduction in  annual pollution releases to the environment.

Environmental Information Grants
      In FY  2007, the President's Budget includes $14.9 million to continue the
Environmental Information Exchange  Network  (Exchange Network) grant program.
Started  in 2002, the  Exchange Network grant program  provides assistance to states,
territories, tribes,  and Tribal Consortia,  to develop the  information management and
technology  (IM/IT) capabilities they need to  participate in the Exchange Network. This
will improve environmental decision making, increase environmental data quality and
accuracy, and reduce burdens on those who provide and those who access information.
In FY 2007, EPA, states, tribes, and territories will continue to re-engineer data systems
so that information previously  not available  or not easily available can be exchanged
                                                                            A-3

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Appendix A: Categorical Grants


using common data standards.  By the end of 2007 all fifty states and approximately ten
tribes will have established nodes on the Exchange Network and will be mapping data
for sharing with partners and submission to EPA.

Sfafe and Tribal Underground Storage Tanks Program
      The President's FY 2007 Budget includes $37.6 million for Underground Storage
Tank grants.  In FY 2007, EPA will provide assistance to states to help them meet their
new responsibilities under the Energy Policy Act  of 2005.  This includes performing
additional  inspections, developing  operator training  requirements,  prohibiting fuel
deliveries at non-compliant LIST facilities, and requiring  secondary containment for new
and  replaced  tanks and  piping  or financial  responsibility for  tank installers and
manufacturers.  States and tribes will use these resources to ensure that  LIST 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 2007,  the President's Budget includes $103.3 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.  In FY 2007, EPA expects to increase the
number of hazardous waste facilities with permits  by 2.4% in order to  meet the 2008
goal of 95% coverage and increase  the percent of annual permit renewals in line with
2008 requirements of a 50% annual renewal rate.

Brownfields Grants
      In FY 2007, the President's  Budget includes  $49.5 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 states and tribes capitalize Revolving Loan Funds for Brownfields
cleanup, purchase  environmental insurance, and conduct site-specific related activities
such as assessments at Brownfields sites.  In FY 2007, the funding provided will result
in the assessment  of 1,000 Brownfields properties.  Brownfields grantees  will leverage
$900,000 in cleanup and redevelopment funding.

Water Pollution Control (Clean Water Act Section 106) Grants
      In FY 2007, the President's Budget  includes $221.7 million  for Water Pollution
Control  grants.  These funds enable National Pollution  Discharge  Elimination System
(NPDES)  permitting,   enhance  water  quality monitoring  activities,  support  Total
Maximum  Daily Load (TMDL)  development,  and will  lead to  improved water quality
A-4

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                                                  Appendix A:  Categorical Grants


standards.  In 2007 EPA will work with states to implement the new rules governing
discharges from Concentrated Animal Feeding  Operations (CAFOs) such that most
CAFOs will be  permitted by 2008.  EPA will also review and  update state and tribal
water quality  standards so that over 91 percent of submissions will be approvable in
2007.  Lastly, EPA's goal for 2007  is  that over 66 percent of states will have updated
their standards to reflect the latest scientific information in the past three years.

Wetlands Grants
      In  FY 2007, the President's Budget includes $16.8 million for Wetlands Program
Grants.   Through Wetlands Program  Development  Grants, states, tribes, and local
governments  receive technical and  financial  assistance to support the Administration's
goal of protecting, restoring, and enhancing 3 million acres of wetlands. Grant funds will
be used for the development and implementation of state and tribal wetland programs
that  improve  water quality  in watersheds throughout the country, as well as assist
private landowners, educate local governments,  and  monitor and  assess wetland
quantity and quality.

Public Water System Supervision Grants
      In  FY  2007, the  President's Budget includes $99.1  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.  In FY 2007, the Agency
will emphasize that states use their PWSS funds to ensure that drinking water systems of
all sizes  achieve or remain  in compliance and drinking water systems of  all sizes  are
meeting new  health-based standards that came into effect in FY 2006, e.g. arsenic and
uranium.

Indian General Assistance Program Grants
      In  FY 2007, the President's Budget includes $56.9 million for the Indian General
Assistance Program (GAP) to help Federally recognized tribes and inter-tribal consortia
develop,  implement and  assume environmental programs. In FY 2007, 517 federally-
recognized tribes and  inter-Tribal  Consortia, or 90 percent of a  universe of 572 eligible
entities, will have access to an environmental presence, or representative, to administer
environmental programs.

Homeland Security Grants
      In  FY 2007, 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.  EPA
homeland security grants will be awarded to 56 states  and territories.
                                                                           A-5

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Appendix A: Categorical Grants


Underground Injection Control (UIC) Grants
      The  FY 2007 President's Budget  includes $10.9 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.  EPA and the states will address 95 percent or higher of Classes
I, II, and III existing wells determined to be in violation and Class V  existing  wells
determined to be in violation in FY 2007. Additionally, EPA and the states will close or
permit 80 percent of Motor Vehicle Waste Disposal wells (Class V) identified during FY
2007.

Targeted Watershed Grants
      The President's FY 2007 Budget funds Targeted Watershed grants at $6.9 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.

BEACH Act Grants
      The  President's FY 2007 budget includes $9.9 million for the 35  states and
territories with Great Lakes or coastal shorelines to protect public health at the Nation's
beaches.  The Beaches Environmental Assessment and Coastal Health Act (BEACH
Act) of  October  2000  authorizes EPA to  award grants to  help eligible   states and
territories develop and implement beach bacteria monitoring and notification programs.
These programs  inform  the  public about  the  risk of exposure to disease-causing
microorganisms in coastal waters (including the Great Lakes).

Non-Point Source Program Grants (NFS - Section 319)
      In FY 2007,  the President's Budget includes $194.0 million for Non-Point Source
Program grants to  states, territories, and tribes.  These grants enable states to use a
range of tools to  implement their programs  including:  non-regulatory and regulatory
programs, technical assistance, financial assistance,  education,  training,   technology
transfer, and demonstration projects.  The  request also eliminates the statutory one-
third of one-percent cap on Clean Water Act Section 319  Non-point Source Pollution
grants that may be awarded to tribes.  This  program will reduce the annual amount of
runoff of phosphorus, nitrogen, and sediment by 4.5 million pounds, 8.5 million pounds,
and 700,000 tons, respectively.
A-6

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

Air & Radiation
State and Local Assistance
Tribal Assistance
Radon
Water
Pollution Control (Section 106)
Beaches Protection
Nonpoint Source (Section 319)
Wetlands Program Development
Water Quality Cooperative Agrmts
Targeted Watersheds
Wastewater Operator Training
Drinking Water
Public Water System Supervision (PWSS)
Underground Injection Control (DIG)
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 (Enf & Comp Assurance)
Indian General Assistance Program
State and Tribal Performance Fund

$220,261.0
$10,887.0
$7,439.0
$238,587.0
$216,172.0
$9,853.0
$204,278.0
$15,765.0
$0.0
$16,608.0
$1,182.0
$463,858.0
$98,279.0
$10,838.0
$4,926.0
$114,043.0
$101,944.0
$49,264.0
$11,774.0
$162,982.0
$12,907.0
$13,499.0
$5,074.0
$18,622.0
$50,102.0
$19,706.0
$4,926.0
$2,217.0
$56,654.0
$0.0
$83,503.0
$185,179.5
$10,939.5
$8,073.5
$204,192.5
$221,661.0
$9,900.0
$194,040.0
$16,830.0
$0.0
$6,930.0
$0.0
$449,361.0
$99,099.0
$10,890.0
$4,950.0
$114,939.0
$103,345.5
$49,494.9
$37,566.7
$190,407.1
$12,968.9
$13,563.1
$5,098.5
$18,711.0
$50,341.5
$14,850.0
$5,940.0
$2,227.5
$56,925.0
$0.0
$79,942.5
Total Categorical Grants
Reflects FY2006 Enacted 0.476% rescission and additional 1% reduction
                                                                   A-7

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

Infrastructure Financing
Clean Water State Revolving Fund (CWSRF)
Drinking Water State Revolving Fund (DWSRF)
STAG Projects
Brownfields Environmental Projects
Clean School Bus Initiative
Diesel Emissions Reduction Program
Mexico Border Projects
Alaska Native Villages
Targeted Projects - Puerto Rico
TOTAL
FY 2006
Enacted Budget1

$886.8
$837.5

$88.7
$6.9
$0.0
$49.3
$34.5
$0.0
$7,903.7
FY 2007
President's Budget

$687.6
$841.5

$89.1
$0.0
$49.5
$24.8
$14.9
$1.0
$7,708.4
    FY2006 Enacted includes a 0.476% rescission and an additional 1% reduction.

Infrastructure and Special Projects Funds
      The President's Budget includes a total of $1,708.4 million  in 2007 for EPA's
Infrastructure programs  and State and  Tribal  Assistance Grant  (STAG)  projects.
Approximately $1,545 million will support  EPA's Goal 2: Clean and Safe Water, $114
million will support EPA's  Goal 4:  Healthy  Communities and  Ecosystems  and $50
million will support Goal 1: Clean Air and Global Climate Change.

      Infrastructure  and targeted  projects  funding  under the  STAG  appropriation
provides  financial  assistance   to  states,   municipalities,  interstates,  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, and political subdivisions (including cities, towns, and
                                                                             B-1

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Appendix B: Infrastructure Finance
counties) the  necessary tools, information,  and  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 2007.
Some of these goals include:

     - 94 percent of the population  served  by community water systems will receive
      drinking water meeting all health-based standards.

     -Award 101  assessment  grants under the  Brownfields program, bringing  the
      cumulative total grants awarded to 1,081 by the end of FY 2007 paving the way
      for productive reuse of these properties. This will bring the total number of sites
      assessed  to 9,000 while leveraging a  total  of  $10  billion  in  cleanup and
      redevelopment funds since 1995.

Goal 1: Clean Air and Global Climate Change

Diesel Emissions Reduction Grant Program
      In FY 2007, EPA will support the National Clean Diesel program, authorized in
Sections 791-797 of the Energy Policy Act of 2005.  This program focuses on reducing
particulate matter (PM) by up to 95% from existing diesel engines, including on-highway
and nonroad equipment and reducing other, smog-forming emissions such as nitrogen
oxides and  hydrocarbons.  Five sectors are targeted for reduction: freight, construction,
school buses, agriculture, and ports.  Grants will be provided to eligible entries in areas
of the country that are not meeting ambient air quality standards. This program will help
provide  immediate reductions by  retrofitting  the  engines  with  emission  control
technologies sooner than would otherwise occur through normal turnover of the fleet
because these engines often remain in service for 20 or more years. In 2007, up to 30
percent  of the appropriated funds will be used to provide formula grants to states for the
purpose of establishing state grant and loan programs.  EPA expects to fund at least 200
new grants deploying technology in various sectors using diesel engines. These funds
will  also support competitive grants for replacing, repowering  and retrofitting older
school buses with emission control technology, potentially reducing PM emissions by up
to 95 percent.

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
B-2

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                                               Appendix B:  Infrastructure Finance
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 provide financial assistance for wastewater and other water
projects through  the  Clean Water State  Revolving Fund  (CWSRF).  CWSRF projects
include  nonpoint  source, estuary, storm water, and sewer overflow  projects.   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.  Water infrastructure  projects supported by  the program contribute to direct
ecosystem improvements by lowering the amount of  nutrients and toxic pollutants in all
types of surface waters. While great progress has been made,  many rivers, lakes and
ocean/coastal areas still suffer an enormous  influx  of pollutants  after heavy  rains.  The
contaminants result  in  beach closures,  infect fish and  degrade  the ability  of the
watersheds to sustain a healthy ecosystem.  Improvements to  our cities infrastructure
remain a top priority if we are to reclaim our water resources.

      The FY 2007 President's Budget Request includes  $687.6 million in  funding for
the CWSRF.  More than $23  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 $55 billion, of which more than $52
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.  Since  its inception in 1997,  the Drinking Water State Revolving Fund
(DWSRF) program has made available  $11.1 billion  to  finance 4,196 infrastructure
improvement projects nationwide,  with a return of $1.73 for every $1 of Federal funds
invested.  The  need for infrastructure  improvements greatly  exceeds the available
resources at every level: Federal,  state, and  local.  EPA is exploring solutions with our
partners.
                                                                            B-3

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Appendix B: Infrastructure Finance
Set-Asides for Tribes
      To  improve public health and water quality on  Tribal  lands, the Agency will
continue the 1 %  percent CWSRF set-aside for funding wastewater grants to tribes as
provided in the Agency's 2002 appropriation. The 2002 World Summit in Johannesburg
adopted the goal of reducing the number of people lacking access to basic sanitation by
50 percent by 2015.  Through  this  program,  EPA  contributes to this goal  which will
provide for the development of sanitation facilities for tribes and Alaska Native Villages.

Alaska Native Villages
      The President's Budget provides $15 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,  the Alaska Native Tribal Health
Council  and local communities to provide needed financial and technical assistance.

Puerto Rico
      The President's  Budget  includes  $1.0  million for  the  next  design phase of
upgrades  to  Metropolitano's Sergio Cuevas treatment plant in San Juan,  Puerto Rico.
EPA and  Puerto Rico provided $7 million to date  ($3.8 million  and  $3.2  million,
respectively). 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 $89.0 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. In  FY 2007, the funding
provided will  result  in the assessment  of 1,000 Brownfields properties.  Brownfields
grantees will leverage $900,000 in cleanup and redevelopment funding.

Mexico Border
      The OMB Submission  includes  a total  of $25.0 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.   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 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.  The program has sufficient resources to
carry out currently approved projects and provides $25 million to address new needs in
FY 2007.
B-4

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


Superfund3
Inspector General (Transfers)
Research & Development (Transfers)
Superfund Total
Rescission of Prior Year's SF Funds
Base Realignment and Closure4
LUST
Trust Funds Total:
FY 2006
Enacted1' 2
$
$1,199
$13
$30
$1,242
-$11
$0
$805
$1,311
FTE
3,126
94
106
3,327
0
78
77
3,482
FY 2007
President's Budget1
$
$1,218
$13
$28
$1,259
$0
$0
$73
$1,332
FTE
3,097
94
106
3,297
0
78
77
3,452
 Totals may not add due to rounding.
2 Includes enacted agency-wide across-the-board 0.476 percent reduction and 1.0 percent reduction
3 Includes about $26 million for the Department of Justice annually in FY 2006 and FY 2007.
4 Funding for reimbursable FTE provided by the Department of Defense via Interagency Agreement.
5 Includes enacted supplemental resources for Hurricane Katrina response.

Superfund
      In FY 2007,  the President's  Budget  requests a total  of  $1,259  million  in
discretionary budget authority and 3,297 workyears for Superfund.  Currently, more than
94 percent of the 1,547 sites on the Superfund  National Priorities List (NPL) are either
undergoing cleanup construction, are completed,  or are deleted.

      Of the total funding requested for Superfund, $582 million and 950 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.   To address the challenges of meeting construction and
post-construction  responsibilities,  EPA  proposes  to  redirect  resources  toward
construction from activities undertaken in the earlier phases of the Superfund remedial
program.   In  FY  2007,  EPA  and its  partners anticipate completing 40  Superfund
cleanups at  NPL sites to achieve the overall goal  of 1,046 total construction completions
by the end of 2007.
                                                                              C-1

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Appendix C: Trust Funds
      Of  the  total  funding  requested, $183 million and  1,105 workyears  are  for
Superfund enforcement  related  activities.   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 reaching a settlement with
or taking an enforcement action by the time of a Remedial Action start at 90 percent of
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 FY 2007  President's Budget also includes resources supporting  Agency-
wide  resource  management   and  control  functions.    This  includes  essential
infrastructure, contract administration,  financial accounting, other fiscal operations and
funds 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.

      In  addition, the Agency provides funds for  Superfund  program research and
auditing.   The  President's  Budget requests $28  million and  106 workyears to  be
transferred to Research  and Development for innovative cleanup technology testing.
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.   The  President's  Budget also  requests  $13  million  and 94 workyears to  be
transferred to the Inspector General for program auditing.

Base Realignment and Closure Act
      The FY 2007 President's Budget requests 78 reimbursable workyears to  conduct
the Base Realignment and Closure Act (BRAG) 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  for  realignment   or   closure.     Of  these,
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                                                       Appendix C: Trust Funds
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 BRAG, new responsibilities are
anticipated as part of BRAG Round 5. This FY 2007 request does not include support
for BRAC-related services to DoD at BRAG 5 facilities; if EPA services related to BRAG
5 facilities are required, the Agency assumes DoD will reimburse EPA for the costs the
Agency incurs to provide BRAC-related services.

Leaking Underground Storage Tanks
      The FY 2007 President's Budget requests $73 million and 77 workyears for the
Leaking Underground Storage Tank (LUST) program. Not less than 80 percent (80%)
of LUST appropriated funds will be used in cooperative agreements for states and tribes
to carry out specific purposes. EPA will continue to work with the states to achieve more
cleanups completed each year, and reduce the FY  2005 backlog of 119,240 cleanups
not  yet completed. Since the beginning of the UST program, EPA has cleaned up
almost 74  percent (or 332,799) of all  reported releases.
                                                                           C-3

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                                              Appendix D: Budget Tables


               Environmental Protection Agency
       Summary of Agency Resources by Appropriation
                         (Dollars in Thousands)

Science & Technology (S&T) 2
Rescission of Prior Year's S&T Funds
Environmental Programs and Management (EPM)
Rescission of Prior Year's EPM Funds
Office of Inspector General 2
Buildings & Facilities
Oil Spill Response
Superfund (SF)
- Superfund Program
- Inspector General Transfer
- Science & Technology Transfer
Rescission of Prior Year's SF Funds
Leaking Underground Storage Tanks
State & Tribal Assistance Grants (STAG)
Rescission of Prior Year's STAG Funds
Agency Total:
$730,810
-$1,000
$2,346,711
-$2,000
$36,904
$39,626
$15,629
$1,242,074
$1,198,581
$13,337
$30, 156
-$11,000
$79,953
$3,213,709
-$66,000
$7,625,416
$788,274
$2,306,617
$35,100
$39,816
$16,506
$1,258,955
$1,217,828
$13,316
$27,811
$72,759
$2,797,448
$0
$7,315,475
1 FY 2006 Enacted includes a 0.476% rescission and additional 1% reduction.
2 Does not include Superfund transfers-see the Superfund line items below for annual amounts.
                                                                 D-1

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Appendix D: Budget Tables
                 Environmental Protection Agency
              Summary of Agency Resources by Goal
                            (Dollars in Thousands)
                                                       FY 2007
                                           FY 2006  President's
 Goal	Enacted1     Budget   Difference


 1 - Clean Air and Global Climate Change        $923,596    $932,025      $8,428


 2 - Clean and Safe Water                    $3,133,212  $2,731,342   -$401,870


 3 - Land Preservation and Restoration         $1,656,471  $1,689,635     $33,164


 4 - Healthy Communities and Ecosystems      $1,249,321  $1,228,934    -$20,388
 5 - Compliance and Environmental
   Stewardship
 Rescission of Prior Year's Funds               -$80,000

 Total  2	$7,625,416  $7,315,475   -$389,941
1 Reflects FY 2006 Enacted 0.476% rescission and additional 1% reduction.
2 Totals may not add due to rounding.
D-2

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                                                              Appendix D: Budget Tables
                     Resources by Program / Project
                                 (Dollars in Thousands)
Acquisition Management                                                 $43,350.0       $49,293.4
Administrative Law                                                        $4,607.0        $4,860.9
Alternative Dispute Resolution                                              $2,023.0        $2,117.0
Audits, Evaluations, and Investigations                                     $50,241.0       $48,416.0
Beach / Fish Programs                                                    $3,156.0        $2,653.9
Brownfields                                                             $24,534.0       $24,637.3
Brownfields Projects                                                     $88,676.0       $89,119.4
Categorical Grant: Beaches Protection                                      $9,853.0        $9,900.0
Categorical Grant: Brownfields                                            $49,264.0       $49,494.9
Categorical Grant: Environmental Information                               $19,706.0       $14,850.0
Categorical Grant: Hazardous Waste Financial Assistance                   $101,944.0      $103,345.5
Categorical Grant: Homeland Security                                      $4,926.0        $4,950.0
Categorical Grant: Lead                                                 $13,499.0       $13,563.1
Categorical Grant: Nonpoint Source (Sec. 319)                             $204,278.0      $194,040.0
Categorical Grant: Pesticides Enforcement                                 $18,622.0       $18,711.0
Categorical Grant: Pesticides Program Implementation                       $12,907.0       $12,968.9
Categorical Grant: Pollution Control (Sec. 106)                             $216,172.0      $221,661.0
Categorical Grant: Pollution Prevention                                      $4,926.0        $5,940.0
Categorical Grant: Public Water System Supervision (PWSS)                 $98,279.0       $99,099.0
Categorical Grant: Radon                                                 $7,439.0        $8,073.5
Categorical Grant: Sector Program                                         $2,217.0        $2,227.5
Categorical Grant: State and Local Air Quality Management                  $220,261.0      $185,179.5
Categorical Grant: Targeted Watersheds                                   $16,608.0        $6,930.0
Categorical Grant: Toxics Substances Compliance                            $5,074.0        $5,098.5
Categorical Grant: Tribal Air Quality Management                           $10,887.0       $10,939.5
Categorical Grant: Tribal General Assistance Program                       $56,654.0       $56,925.0
Categorical Grant: Underground  Injection Control (UIC)                      $10,838.0       $10,890.0
Categorical Grant: Underground  Storage Tanks                             $11,774.0       $37,566.7
Categorical Grant: Wastewater Operator Training                             $1,182.0            $0.0
Categorical Grant: Wetlands Program Development                         $15,765.0       $16,830.0
Central Planning, Budgeting, and Finance                                  $99,039.0      $110,103.7
Children and Other Sensitive Populations: Agency Coordination                 $5,633.0        $6,063.8
Civil Enforcement                                                      $120,513.0      $123,487.0
Civil Rights / Title VI Compliance                                           $10,575.0       $11,053.7
Clean Air Allowance Trading Programs                                     $26,235.0       $28,385.8
Clean School Bus Initiative                                                 $6,897.0            $0.0
Climate Protection Program                                              $109,482.0      $104,392.9
Commission for Environmental Cooperation                                  $4,116.0        $4,137.0
Compliance Assistance and Centers                                       $28,941.0       $30,032.2
Compliance Incentives                                                    $9,598.0        $9,844.9
Compliance Monitoring                                                   $86,418.0       $94,162.9
Congressional, Intergovernmental, External Relations                        $50,339.0       $52,273.1
Congressionally Mandated Projects                                       $279,776.0            $0.0
                                                                                        D-3

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Appendix D: Budget Tables
    Program / Project
 Criminal Enforcement                                                    $45,840.0       $46,295.7
 Diesel Emissions Reduction Grant Program                                      $0.0       $49,500.0
 Drinking Water Programs                                                 $98,748.0      $102,364.1
 Endocrine Disrupters                                                      $8,767.0        $7,985.4
 Enforcement Training                                                     $3,526.0        $3,125.6
 Environment and Trade                                                    $1,766.0        $1,861.2
 Environmental Education                                                  $8,889.0            $0.0
 Environmental Justice                                                     $6,396.0        $4,615.7
 Exchange Network                                                      $19,350.0       $17,480.9
 Facilities Infrastructure and Operations                                    $451,775.0      $468,791.3
 Federal Stationary Source Regulations                                     $23,215.0       $25,678.3
 Federal Support for Air Quality Management                               $105,961.0       $98,338.5
 Federal Support for Air Toxics Program                                     $27,630.0       $27,778.4
 Federal Vehicle and Fuels Standards and Certification                        $58,613.0       $68,324.5
 Financial Assistance Grants / IAG Management                             $26,228.0       $24,767.8
 Forensics Support                                                       $16,772.0       $17,369.4
 Geographic Program: Chesapeake Bay                                    $22,118.0       $26,397.7
 Geographic Program: Great Lakes                                        $21,164.0       $20,577.1
 Geographic Program: Gulf of Mexico                                        $4,809.0        $4,310.7
 Geographic Program: Lake Champlain                                      $1,926.0         $933.8
 Geographic Program: Long Island Sound                                     $470.0         $466.9
 Geographic Program: Other                                               $9,957.0        $9,050.0
 Great Lakes Legacy Act                                                  $28,989.0       $49,600.0
 Homeland Security: Communication and Information                          $6,771.0        $7,099.7
 Homeland Security: Critical Infrastructure Protection                         $20,622.0       $54,065.3
 Homeland Security: Preparedness, Response, and Recovery                 $76,583.0       $97,601.7
 Homeland Security: Protection of EPA Personnel and Infrastructure            $20,168.0       $20,327.2
 Human Health Risk Assessment                                           $39,392.0       $38,335.7
 Human Resources Management                                           $46,943.0       $45,475.7
 Indoor Air: Radon Program                                                $5,588.0        $5,961.4
 Information Security                                                       $4,092.0        $6,350.7
 Infrastructure Assistance: Alaska Native Villages                            $34,485.0       $14,850.0
 Infrastructure Assistance: Clean Water SRF                               $886,759.0      $687,555.0
 Infrastructure Assistance: Drinking Water SRF                             $837,495.0      $841,500.0
 Infrastructure Assistance: Mexico Border                                   $49,264.0       $24,750.0
 Infrastructure Assistance: Puerto Rico                                          $0.0         $990.0
 International Capacity Building                                             $6,138.0        $6,390.3
 IT/Data  Management                                                  $116,006.0      $118,404.0
 Legal Advice: Environmental Program                                      $36,686.0       $38,216.3
 Legal Advice: Support Program                                            $13,206.0       $13,465.9
 LUST/UST                                                            $18,277.0       $22,303.8
 LUST Cooperative Agreements                                            $65,647.0       $58,207.2
 Marine Pollution                                                         $12,212.0       $12,462.4
 National Estuary Program / Coastal Waterways                              $23,773.0       $18,417.2
 NEPA Implementation                                                    $12,640.0       $13,787.5
 Oil Spill: Prevention, Preparedness and Response                           $12,066.0       $12,964.6
 Pesticides: Field Programs                                               $24,516.0       $24,926.3
D-4

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                                                              Appendix D: Budget Tables
   Program / Project
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: 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: SITE Program
Research: Water Quality
Research: Economics and Decision Science (EDS)
Research: NAAQS
Research: Sustainability
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:  Remedial
Superfund:  Support to Other Federal Agencies
Superfund: Federal Facilities Enforcement
Surface Water Protection
Toxic Substances:  Chemical Risk Management
Toxic Substances:  Chemical Risk Review and Reduction
 $44,067.0
 $59,938.0
 $16,621.0
  $1,697.0
 $15,384.0
  $6,100.0
 $39,396.0
 $65,793.0
 $11,825.0
 $23,947.0
  $8,060.0
  $3,522.0
 $21,511.0
 $16,551.0
 $16,226.0
 $12,327.0
 $45,170.0
 $10,494.0
  $2,990.0
 $11,691.0
 $18,619.0
$167,703.0
 $36,005.0
 $30,357.0
  $1,206.0
 $51,269.0
  $2,361.0
 $66,777.0
 $26,095.0
  $4,402.0
  $1,694.0
  $3,343.0
  $2,503.0
 $11,377.0
  $4,938.0
  $8,600.0
$193,584.0
$156,653.0
 $10,540.0
 $31,336.0
$588,905.0
  $9,540.0
  $9,410.0
$189,212.0
  $9,008.0
 $46,542.0
 $42,533.7
 $54,635.0
 $21,292.4
  $1,808.7
 $15,026.2
  $6,274.6
 $40,372.3
 $67,887.3
 $12,235.1
 $24,293.0
  $9,137.3
  $3,520.7
 $25,853.6
 $17,554.8
 $12,274.2
 $14,983.1
 $49,242.5
  $9,081.2
      $0.0
  $8,383.0
 $17,456.4
$161,312.7
 $34,071.1
 $26,223.7
      $0.0
 $56,988.2
  $2,494.6
 $65,455.6
 $21,404.9
  $4,615.7
  $1,754.0
  $3,501.7
  $2,646.6
 $12,508.4
  $5,221.4
 $13,365.0
$192,398.9
$163,650.5
  $8,863.1
 $31,486.6
$581,594.9
  $8,575.4
 $10,196.9
$191,587.2
  $7,736.5
 $44,637.0
                                                                                        D-5

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Appendix D: Budget Tables
Program / Project
Toxic Substances: Lead Risk Reduction Program
TRI / Right to Know
Tribal - Capacity Building
US Mexico Border
Wetlands
Rescission of Prior Year's Funds
| Agency Total

$10,162.0
$14,289.0
$11,049.0
$5,749.0
$19,416.0
($80,000.0)
$7,625,416.0

$11,367.6
$15,243.4
$11,435.7
$6,061.0
$20,992.2
$0.0
$7,315,475.0 |
  FY2006 Enacted includes 0.476% rescission and additional 1% reduction.
D-6

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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
CG       Categorical Grant
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
HS       Homeland Security
HWIR    Hazardous Waste Identification Media and Process Rules
IAG      I nteragency Agreements
                                                                            E-1

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Appendix E: Acronyms


                  Environmental Protection Agency
                             List of Acronyms


ICR       Information Collection Rule
IFMS      Integrated Financial Management System
IPCC      Intergovernmental Panel on Climate Change
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
E-2

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                                                         Appendix E: Acronyms
                  Environmental Protection Agency
                            List of Acronyms

PC&B     Personnel, Compensation and Benefits
PM       Participate Matter
PNGV     Partnership for a New Generation of Vehicles
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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