State  Innovation Grant  Program:  Wisconsin
                      The Use of Whole-Farm Environmental Management Systems (EMS) as a
                      Supplement to CAFO Permits for the Dairy Sector (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:
 Urban and rural nonpoint source (NPS) pollution has
 become a significant problem for Wisconsin in recent
 years and is the leading cause of water quality
 problems in the state, degrading or threatening an
 estimated 40 percent of streams and 90 percent of
 inland lakes. Agricultural runoff has been a main
 factor in surface and groundwater  NPS pollution, due
 in part to the high number of dairy farms in the state.
 Wisconsin has nearly 15,000 dairy farms, of which
 approximately only 1 percent are required to have
 water permits and comply with existing confined
 animal feeding operation (CAFO) regulations.  Nearly
 70 percent of the land within Wisconsin's Lakeshore
 Basin is farmed and over 90 percent of farms are not
 regulated. In this tri-county area (Door, Kewanee and
 Manitowok Counties, between the  Lake Michigan
 shoreline and Green Bay), where the project will
 focus, dairy farming is the dominant industry sector
 and  problems with agricultural runoff are especially
 acute. Wisconsin was faced with a choice between
 expanding the  CAFO permit program to address the
 serious environmental problems, and supplementing
 the permit program with other programs that can
 deliver environmental improvement.

 The Wisconsin Department of Natural Resources
 (WDNR) received an EPA State Innovation Grant in
 the 2007 competition to explore the potential and
 expand the capacity for Wisconsin's dairy sector to
 use  whole-farm Environmental  Management Systems
 (EMS) as a tool for multi-media environmental
 improvement on small and mid-size farms.

Project  Description
 WDNR is providing outreach, training, and detailed
 technical assistance to help dairy farmers in
 Wisconsin's Lakeshore Basin develop and
 implement whole-farm  EMS. The EMS process
                         NCE
                         NATIONAL CENTER FOR
                         ENVIRONMENTAL INNOVATION

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 encourages farmers to move beyond a "permit
 compliance" or "best practices" mindset to a "continual
 improvement" mindset that acknowledges how best
 practices evolve over time. This effort will build upon
 an ongoing collaborative partnership called the
 Agricultural Watershed Improvement Network (AWIN),
 and make use of Wisconsin's Green Tier Program,
 WDNR's voluntary environmental leadership program
 to promote and recognize Environmental Excellence.

 Wisconsin's goal of building upon  EMS  knowledge
 and capacity to test the full potential of EMS as a tool
 for environmental improvement in the dairy sector will
 be captured in two objectives. The first objective is to
 target and train the dairy producers, dairy processors,
 and related sector personnel to raise awareness and
 understanding of EMS and Wisconsin's Green Tier
 program. The second objective will build upon their
 training to assist these same parties with implementing
 a whole-farm  EMS, auditing their EMS, and applying for
 and participating in Green Tier.

 The project began with the award of the grant on
 October 1, 2007 and will take three years to complete.
Connection to EPA's Goals:
 This project has a direct link to EPA's Strategic Goal 5,
 Compliance and Environmental Stewardship.
 Specifically this project addresses goal 5.2 by seeking
 to improve environmental  performance through
 pollution prevention and innovation. The project
 promotes  stewardship behavior,  and advances
 sustainable outcomes by testing, evaluating, and
 applying alternative approaches to environmental
 protection aimed at achieving measurably improved
 environmental outcomes.

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 Project Contacts:

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

  Jeffrey Voltz
  Wisconsin Department of Natural Resources
  Bureau of Cooperative Environmental Assistance
  101 S.Webster St., P.O. Box 7921
  Madison, Wl 53707-7921
  (608)266-8226 FAX: (608)267-9305
  jeffrey.voltz@wisconsin.gov
               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
  Marilou Martin
  US EPA Region 5
  77 West Jackson Blvd.
  Chicago, IL 60604
  312-353-9660 FAX: (312)353-5374
  martin.marilou@epa.gov
  Tom Davenport
  US EPA Region 5
  77 West Jackson Blvd.
  Chicago, IL 60604
  312-866-2209: FAX (312)886-0957
  davenport.thomas@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-08-042

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