State Innovation  Grant Program: Wisconsin
                       Wisconsin Autobody Refinishing Shops in Six States (2009 Competition)
The State  Innovation  Grant Progran
  In 2002 EPA introduced the State Innovation Grant Program to support
  efforts led by state environmental agencies to test innovative approaches
  for achieving better environmental results and improved efficiency in
  permitting programs.  Between 2002 and 2009, the State Innovation
  Grant program competition awarded over eight million dollars to
  support 40 state projects that test permitting innovation for a variety of
  regulated entities including several small business sectors. A
  summary of the awards by year appears in the table below.
     State Innovation Grant Program Statistics, 2002-2009
I  Competition  Proposals  Proposals
     Year      Submitted  Selected
   2002/2003        9Q          fi
   Cumulative
Total Program
 Funding ($)
                                          $618,000
                                        $1.526 Million
                                        $1.528 Million
                                        $1.355 Million
                                        $1.644 Million
                                          $830,000
                                          $590,000
                                        $8.091 Million
 "Innovation in Permitting" has been the theme of the State Innovation
 Grant competition since its inception.  In the last three competition
 cycles states received awards for projects in the following three
 categories:
   The Environmental Results Program (ERP) is an innovative
    approach to improving environmental performance based on a system
    of the interlocking tools of compliance assistance, self-certification
    (sometimes, where permissible, in lieu of permitting), and
    statistically-based measurement to gauge the performance of an entire
    business sector. The program utilizes a multimedia approach to
    encourage small sources to achieve environmental compliance and
    pollution prevention. (See: http://www.epa.gov/permits/erp/)
   Environmental Management System (EMS) is a system
    involving a continual cycle of planning, implementing, reviewing
    and improving the processes and actions that an organization
    undertakes to meet its business and environmental  goals. EMSs
    provide organizations of all types with a structured system and
    approach for managing environmental and regulatory
    responsibilities to improve overall environmental performance and
    stewardship.  (See: www.epa.gov/ems/info/index.htm)
 NCEI has provided awards also for projects testing watershed-based
 permitting, and for permit process  streamlining in past competitions.
 For more information on the history of the programs, including
 information on solicitations, state proposals, and project awards,
 please see the EPA State Innovation Grants website at http://
Project Background:
 New federal rules to reduce air toxic emissions are
 affecting thousands of very small sources (e.g.
 autobody refinishing shops) that previously had little to
 no formal regulation by state or federal environmental
 agencies. Needed emissions reductions will not be
 achieved without some effort to help small sources
 understand and comply with the requirements of the
 new rule. Many states lack sufficient resources to
 implement and enforce the new rules. An
 Environmental  Results Program (ERP) will more
 efficiently and cost effectively reach small businesses
 and improve their compliance and environmental
 performance as opposed to the more traditional
 permitting and  compliance system.

Project Description
 The Wisconsin  Department of Natural  Resources
 (WDNR) and the Wisconsin Department of Commerce
 Small Business Clean Air Assistance Program will
 partner with other states Small Business
 Environmental Assistance Programs (SBEAPs) in
 Region 5 to develop an ERP for the autobody
 refinishing sector affected by the Subpart 6H area
 source National Emission Standards for Hazardous Air
 Pollutants (NESHAP), which will include compliance
 assistance, self-certification, and statistical analysis of
 baseline and post-certification measurement
 performance. The  primary purpose and focus of the
 project will be to increase compliance with Subpart
 6H, but education  and collecting data on best
 practices in energy efficiency and pollution prevention
 are also  important aspects of the project.

 State environmental agencies and EPA regional
 offices will work together to implement dozens of new
 area source NESHAPs and to reduce air toxics
 emissions. Use of  plain-language materials that
 explain the requirements and how to comply are  more
                                                NCEI
                                                NATIONAL CENTER FOR
                                                ENVIRONMENTAL INNOVATION

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effective at achieving positive change in the behavior of
small businesses, as opposed to using a compliance
inspector and a permit document written in legal terms.
In addition, random sample baseline visits will be
conducted to measure whether the outcome of
improved environmental performance of the shops
affected by the new area source rule has been
achieved.

The Region 5 ERP  for autobody shops will develop in
the following phases:

  1.   The universe of sources in the project will be
      compiled. Each state's SBEAP will compile a list
      of the autobody refinishing universe and decide
      which areas  in their state will be selected for
      focus.

  2.   State SBEAPs and consultants will  conduct the
      baseline visits. They will be trained together to
      ensure common understanding of the measures
      and statistical principals for data gathering are
      followed.

  3.   SBEAPs along with EPA staff and other
      stakeholders will develop common materials for
      the compliance assistance phase of the ERP.

  4.   A self-certification checklist that also meets the
      needs of the Notification of Compliance Status for
      Subpart 6H will be provided to all shops and any
      necessary follow-ups will be done by Region 5
      EPA.

  5.   Region 5 EPA will conduct random compliance
      inspections following the self-certification phase.

  6.   After completion of the compliance inspections, all
      data will be compiled and a final report will be
      written.

Environmental outcomes in air practices, air record
keeping, and possible hazardous waste are all expected
to be observable  upon completion of the Region 5 ERP
project for autobody refinishing shops. In addition, many
indicators for industrial wastewater and pollution
prevention are possible: including the percentage of
facilities discharging industrial wastewater to surface
 water, the percentage taking one or more actions to
 conserve energy and the percentage taking one or more
 voluntary actions to further reduce toxics.

Connection to  EPA's Goals:
 This proposal will support EPA's Strategic Goal #1,
 healthier outdoor air and reducing emissions of air toxics,
 by focusing on implementing the NESHAP for Area
 Sources of Paint Stripping and Miscellaneous Surface
 Coating, 40 CFR Part 63 Subpart 6H, to help reduce air
 toxics throughout the Region 5 states. The project also
 supports EPA's Goal #5 in compliance assistance,
 reducing environmental risks in all areas, including those
 with environmental justice concerns, and to prevent
 pollution, promote environmental stewardship; and
 promote improved environmental performance through
 a project with a sector-based and performance-based
 focus conducted largely by providing direct assistance to
 small businesses.

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 Project Contacts:
               Program  Contact:
  For more specific information on the
  Wisconsin State Innovation Grant,
  please contact one of the individuals
  below:

  Renee Lesjak Bashel
  State  Project Manager
  Wl Department of Commerce
  Small Business Clean Air Assistance Program
  Madison,  Wl 53707
  Phone: 608.264.6153  Fax: 608.264.6151
  Email: Renee.Bashel(Swisconsin.gov
                Sherri Walker
                State Innovation Grant Program
                U.S. Environmental Protection Agency
                Washington, DC 20460 (MC1807T)
                (202)-566-2186; FAX (202) 566-2220
                walker.sherri@epa.gov
  Bill Baumann
  State Project Manager
  Wl Department of Natural Resources
  Bureau of Air Management
  Madison, Wl 53707
  Phone: 608.267.7542  Fax: 608.267.0560
  Email: William.Baumann@wisconsin.gov

  Jeannette Marrero
  EPA Grant Project Officer
  USEPA Region 5
  77 W. Jackson Blvd. (AT-18J)
  Chicago,  Illinois 60604
  Phone: 312.886.6543
  Email: Marrero.Jeanette@epa.gov

  Rae Trine
  Region 5 Technical Liasion
  USEPA Region 5
  77 W. Jackson Blvd. (AT-18J)
  Chicago,  Illinois 60604
  Phone: 312.353.9228
  Email: Trine.Rae@epa.gov

  Kimberly Green-Goldsborough
  NCEI Technical Liaison
  National Center for Environmental Innovation
  US Environmental Protection Agency
  Washington,  DC 20460
  Phone: 202.566.2355
  Email: Green-Goldsborouah.Kimberlv(a)epa.aov
United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
(1807T)
 December 2009
EPA-100-F-09-054

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