State Innovation Grant  Program:  New York
                      New York State Small  Business Sectors ERP Implementation Pilot Project
                      (2007 Competition)
                        ie innovation urani rrogram 10 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 2007, the State Innovation Grant
program competition awarded over six million dollars to support 35 state
projects that test permitting innovation for a variety of regulated entities
including several small business sectors. Asummary of the awards by year
appears in the table below.
    State Innovation Grant Program Statistics, 2002-2007
 Competition   Proposals  Proposals     Total Program
    Year      Submitted   Selected       Funding ($)
  2002/2003
                                         $618,000
                                        $1.425 Million
                                        $1.479 Million
 Cumulative
                                        $1.243 Million
                                        $1.611 Million
                                        $6.376 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)
• Performance Track is a partnership that recognizes top
  environmental performance among participating US facilities of all types,
  sizes, and complexity, both public and private.
  (See: http://www.epa.gov/performancetrack/)
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
                       ittD://www.eDa.aov/innovation/statear
Project  Background:
 The New York State Department of Environmental
 Conservation (NYSDEC) has the primary
 responsibility for implementing and  enforcing
 environmental regulatory programs within the state.
 Historically, due to resource limitations, NYSDEC has
 had difficulty ensuring the  environmental compliance
 of various  small business  sectors with large numbers
 of small pollution  sources.  Specifically, auto body
 shops and printers are two sectors with  numerous
 facilities for which NYSDEC has had difficulty
 providing adequate regulatory oversight. Both
 printers  and auto  body shops handle volatile
 solvents and generate hazardous wastes on a
 regular basis. The Environmental Results Program
 (ERP) approach has been demonstrated by several
 states to be effective in bringing a greater number of
 regulated facilities into regulatory  compliance in  a
 more timely and cost-effective manner than
 conventional compliance monitoring efforts.

 In addition, state legislation, Article 28 of the
 Environmental Conservation Law (ECL), has given
 NYSDEC broader authority to promote pollution
 prevention as the preferred means for achieving
 environmental goals including reducing  energy and
 resource consumption. While  maintaining and
 continuing to enhance important existing regulatory
 programs,  this law requires the development of
 incentives  to foster innovation and adoption of the
 safest, most sustainable production methods, work
 practices,  products and technologies.

 NYSDEC received a 2007  US EPA State Innovation
 Grant to develop  and  implement an ERP modeled
 after the general ERP framework developed by the
 Massachusetts Department of Environmental
 Protection  and demonstrated by other states. ERP
 combines  compliance assistance, self-certification,
                          NCE
                          NATIONAL CENTER  FOR
                          ENVIRONMENTAL INNOVATION

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 and statistically-based agency auditing to improve
 environmental performance within a targeted sector.

 For this project,  NYSDEC has partnered with four other
 New York State agencies to assist in its  development
 and implementation, and to provide sector-specific
 outreach  and technical assistance regarding pollution
 prevention and  energy efficiency practices. These
 agencies are:

   •   New York State Department of Economic
       Development (NYSDED)

   •   New York State Environmental Facilities
       Corporation (NYSEFC)

   •   New York State Energy  Research  and
       Development Authority (NYSERDA)

   •   New York State Office of Science, Technology
       and Academic Research (NYSTAR).

Project Description
 The NYSDEC ERP will be a multi-media mandatory
 program and will initially focus  on the auto body and
 printing sectors. The project will then be expanded to
 include an additional small  business sector that will be
 determined by NYSDEC  and its project partner
 agencies. The project will be completed  in three
 overlapping phases. Phase 1 and 2 will consist of
 developing and  implementing pilot ERPs for auto body
 shops  and printers, both  exclusively in NYSDEC
 Regions 4 and 9.  During Phase 3, NYSDEC will begin
 implementing the ERPs for these sectors in the
 remaining seven NYSDEC  Regions.  Phase 3  will also
 initiate the development of an ERP for the additional
 small business  sector.

 NYSDEC's goals of this project are to: 1) use ERP
 tools to help increase compliance and promote
 pollution  prevention and  energy efficiency concepts
 through assistance and outreach to these three
 business  sectors as a model for future expansion to
 the state's various small  business sectors and  2)
 provide measurable improvement in the environmental
 performance and pollution prevention and energy
 efficiency practices of these three business sectors in
 a more timely and cost effective manner than traditional
 compliance assistance and monitoring efforts.

 The project began with the award of the grant on
 October 1, 2007 and will take four years to complete.
Connection to EPA's  Goals:
 This project has a direct link to Goals 1, 3 and 5 of the
 EPA Strategic Plan.  Specifically, this project seeks to
 improve environmental performance through  pollution
 prevention and innovation,  and achieve measurably
 improved environmental performance through sector-
 based  approaches, performance-based programs,
 and assistance to small business (Goal 5).  It also
 seeks to reduce risks from  toxic air pollutants
 (Objective 1.1) by reducing emissions of volatile
 organic compounds as well as reducing releases to
 the environment by managing  hazardous wastes
 properly (Objective 3.1).

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 Project Contacts:

  For more specific information on the
  New York State Innovation Grant,
  please contact one of the  individuals
  below:

  Paul  Counterman,
  RE., Director, Bureau of Hazardous Waste Regulation
  NYSDEC, 625 Broadway
  Albany, NY 12233-7251
  (518)402-8612 FAX:(518)402-9024
  prcounte@gw.dec.state.ny.us
               Program Contact:
                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
  Jennifer Thatcher
  US EPA Region 2
  290 Broadway
  New York, NY 10007-1866
  (212) 637-3593 FAX:
  thatcher.jennifer@epa.gov
  Beth  Termini
  National Center for Environmental Innovation
  US EPA Region 1
  1 Congress Street
  Boston, MA02114
  617.918.1662
  termini.beth@epa.gov
United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
(1807T)
       May 2008
EPA-100-F-08-040

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