ENVIRONMENTAL AND FINANCIAL PROGRESS
-------
CONTENTS
Message From the Administrator 1
Message From the Chief Financial Officer 2
Introduction 3
About EPA 4
FY 2009 Program Performance 7
Goal 1: Clean Air and Global Climate Change 10
Goal 2: Clean and Safe Water 13
Goal 3: Land Preservation and Restoration 16
Goal 4: Healthy Communities and Ecosystems 19
Goal 5: Compliance and Environmental Stewardship 22
Financial Performance 25
EPA and the American Recovery and Reinvestment Act of 2009 26
EPA Holds Itself Accountable... .. 28
-------
Message From the Administrator
I am pleased to present the U.S. Environmental Protection Agency's Fiscal Year 2009 Highlights, a companion to
our Fiscal Year 2009 Performance and Accountability Report. This report briefly highlights EPA's programmatic and
financial accomplishments and the challenges we faced during the past year.
EPA's FY 2009 program represents a transition at the Agency to a new Administration and a new Administrator.
Our results demonstrate a renewed sense of urgency for tackling the environmental problems that are confronting
our nation. EPA instituted a first-ever clean-car program aligned with the U.S. Department of Transportation's
fuel-economy requirements to significantly reduce greenhouse-gas emissions from motor vehicles; we outlined
principles to reform chemicals management; we increased environmental review of mountaintop mining to ensure
stronger protection of water quality; and we have begun implementing a far-reaching Executive Order focused on
cleaning up the Chesapeake Bay. In FY 2009, EPA issued a draft endangerment finding that greenhouse gases are
impacting human health and welfare, proposed rules to track greenhouse gases and also created incentives for
accelerated innovations. We have also completed a major assessment of the impacts of climate change on regional
air quality in the United States and found that climate change has the potential to produce significant increases in
ground-level ozone in many regions.
The American Recovery and Reinvestment Act of 2009 provided $7.2 billion to EPA to spur technological advances
in science and health and invest in environmental protection and other infrastructure that will provide long-term
economic benefits. The Agency has been a leader in effectively and efficiently distributing Recovery Act funds to
promote green jobs and a healthier environment. By the end of FY 2009, EPA had obligated more than 95 percent
of the Recovery Act funds to states and communities.
In coming years, EPA will focus its attention on seven priorities, which I announced in January 2010 and which
complement and expand the four areas detailed in the Performance and Accountability Report. The seven priorities
are: taking action on climate change, improving air quality, ensuring the safety of chemicals, cleaning up our com-
munities, protecting America's waters, expanding the conversation on environmentalism and working for environ-
mental justice, and building strong state and tribal partnerships.
I am proud of the progress that we and our partners have achieved in FY 2009 to improve the quality of our air
and water and to protect the land. EPA is on the job. We will meet our responsibilities for enforcing the nation's
environmental laws and regulations and will work with our state and local partners to meet our biggest environ-
mental challenges.
I
-
It
Jl
III
0
>
r
IV)
o
o
(D
TJ
Lis.
Administrator
-------
From the
Chief Financial Officer
Q
z
<
LU
O
z
<
s
OL
O
LL
or:
LU
D_
O>
O
O
(M
O
0)
LL
This report summarizes results that the Environmental Protection Agency (EPA) achieved during FY 2009.
Drawn from EPA's comprehensive FY2009 Performance and Accountability Report, it highlights some of EPA's
most significant accomplishments and challenges in protecting human health and the environment and
strengthening our program and financial management.
At EPA, we are committed to financial excellence, and we are working diligently to ensure that we use the Agency's
resources as effectively and efficiently as possible in fulfilling EPA's mission to protect human health and the en-
vironment. In FY 2009, we managed more than $7 billion in projects and programs under the American Recovery
and Reinvestment Act of 2009 (Recovery Act) to help create and save jobs, spur economic activity, and invest in
long-term economic growth. We helped other agencies "green" a much larger set of Recovery Act investments, and
we administered environmental laws that will govern federal, state, and local activities in the years to come.
In addition to our careful stewardship of Recovery Act funds, we continued to manage EPA's programs and re-
sources effectively. For the 10th consecutive year, we received an unqualified "clean" audit opinion on our financial
statements, demonstrating our commitment to sound and responsible financial management and our account-
ability to American taxpayers.
EPA continues to collaborate with partners and stakeholders across the nation. We value these cooperative efforts
and look forward to working with organizations and individuals at every level to develop innovative, cross-cutting
strategies to meet the challenges that lie ahead.
I thank EPA's committed and dedicated staff across the country who, working cooperatively with our state and
tribal partners, advanced EPA's mission and made possible the FY 2009 progress summarized in this report.
Barbara}. Bennett
Chief Financial Officer
-------
Introduction
Since it was established in
1970, the U.S. Environmental
Protection Agency (EPA) has
worked toward a cleaner, healthier
environment for all Americans.
From regulating vehicle emissions
to ensuring that drinking water is
safe; from cleaning up toxic waste
to assessing the safety of pesticides
and chemicals; and from reducing
greenhouse gas emissions to en-
couraging conservation, reuse, and
recycling, EPA and its federal, state,
local, and community partners
have made enormous progress in
protecting the nation's health and
environment.
As America's environmental
steward, EPA leads the nation's
environmental science, research,
education, assessment, and enforce-
ment efforts. EPA's science provides
the foundation for Agency decision-
making and serves as the basis for
understanding and preparing to
address future environmental needs
and issues. EPA has strengthened
regulations to protect air, water, and
food and, through its compliance
efforts, has prevented the release
of or otherwise reduced millions of
pounds of pollution in the environ-
ment. With its state, tribal, and local
government partners, EPA is work-
ing to restore and preserve ecosys-
tems and protect children and other
vulnerable groups from environ-
mental risks. With EPA's encourage-
ment and support, people across
the country are making choices to
preserve resources, prevent pollu-
tion, and reduce their impact on the
environment.
Despite the nation's progress,
however, much work remains.
The environmental problems the
country faces today are often more
complex than those of years past,
and implementing solutions—both
nationally and globally—is more
challenging. Addressing global
climate change will call for coordi-
nated efforts to research alternative
fuels and other emission reduction
technologies and will require strong
partnerships across many economic
sectors and around the world.
Increased energy consumption and
higher costs underscore the need to
promote alternative energy sources
and invest in new technologies. EPA
and states face serious challenges
EPA's Long-Term
Strategic Goals
1. Clean Air and Global
Climate Change
2. Clean and Safe Water
3. Land Preservation and
Restoration
4. Healthy Communities
and Ecosystems
5. Compliance and
Environmental
Stewardship
in improving and maintaining
the nation's drinking water and
wastewater infrastructure, and both
are seeking innovative ways to fund
needed repairs and construction.
These and other challenges inspire
the Agency and drive its commit-
ment to excellent performance and
strong, measurable results.
-
It
Jl
III
0
>
r
IV)
o
o
(D
TJ
-------
About EPA
What We Do
Q
z
<
LU
O
z
<
s
a
O
LL
o:
LU
D_
0)
O
O
CM
O
0)
LL
EPA's mission is to protect hu-
man health and the environment.
To achieve a cleaner, healthier
environment for the American
people, the Agency:
* Develops regulations to
implement environmental
laws enacted by Congress and,
where appropriate, delegates
authority to states and tribes
for implementing programs
and ensuring that standards
are met.
* Enforces environmental laws,
regulations, and standards by
taking legal action.
Who We Are
EPA employs 17,000 people
across the country, including our
headquarters offices in Washing-
ton, DC, 10 regional offices, and
more than a dozen labs. Our
staff is highly educated and
Provides grants to states,
nonprofit organizations, and
educational institutions to
implement environmental
programs or support re-
search to improve science and
promote best practices and
innovative approaches.
Operates laboratories
throughout the nation.
Supports pollution preven-
tion and energy conservation,
sponsoring voluntary part-
nerships and programs with
more than 10,000 industries,
businesses, nonprofit organi-
zations, and state and local
governments on more than
40 pollution prevention and
energy conservation efforts.
Promotes environmental edu-
cation by helping Americans
understand environmental
issues; appreciate their shared
responsibility for protecting
the environment; and learn
how they can reduce their use
of energy and materials, reuse
what they can, and recycle the
rest.
technically trained; more than
half are engineers, scientists, and
policy analysts. Many more are
legal, public affairs, financial,
information management, and
computer specialists.
How We Work With Partners and Stakeholders
Addressing today's complex envi-
ronmental issues requires transpar-
ency and cooperative action; real
working partnerships with all in-
volved; and combining the Agency's
resources with those of our other
partners invested in economic and
resource-protection activities. EPA
partners with other federal agencies,
states, tribes, local governments,
and other countries to address to-
day's complex environmental issues.
EPA and states share responsibil-
ity for protecting human health
and the environment, and the
unique relationship between
EPA and states is the cornerstone
of the nation's environmental
-------
protection system. The Agency
can authorize states to carry out
the day-to-day work of imple-
menting most national environ-
mental programs, provided they
have the necessary legal authority
and technical and resource capac-
ity. For more information on
EPA-state partnerships and col-
laborative approaches to improv-
ing environmental protection,
visit: www.epa.gov/ocir/nepps/
index.htm.
In Indian Country, EPA has the
direct responsibility to implement
federal laws to protect human
health and the environment until
a tribe seeks and is approved for an
authorized program. EPA works
with tribes in a government-to-
government relationship toward
this goal. In FY 2009, EPA reaf-
firmed its Indian Policy, outlining
nine principles to guide its work
with tribal governments. EPA and
tribes are focusing on drinking
water, sanitation, schools, and
properly managing solid and haz-
ardous waste on tribal lands. For
more information on EPA-tribal
How We Manage and Improve Performance
To carry out its mission to
protect human health and the
environment, EPA established
five long-range goals: clean air
and global climate change, clean
water, protected land, healthy
communities and ecosystems,
and environmental compliance
and stewardship. These five
goals, along with the 20 objec-
tives and numerous strategic
targets that support them, are
presented in EPA's 2006-2011
Strategic Plan (www.epa.gov/ocfo/
plan/2006/entire_report.pdf).
Each year in its Annual Perfor-
mance Plan and Budget, EPA
commits to annual performance
measures that support achieve-
ment of the longer term goals
and objectives outlined in its
Strategic Plan. EPA reports its
results against its FY 2009 an-
nual performance measures and
discusses progress toward longer
term objectives in its Fiscal Year
partnerships, see EPA's Indian
Policy page at: www.epa.gov/tribal/
basicinfo/epa-policies.htm.
EPA understands, however, that
government alone cannot begin to
address all of the nation's envi-
ronmental challenges. The Agency
also works with business and
industry, nonprofit organizations,
environmental groups, and educa-
tional institutions in a wide variety
of collaborative efforts. Currently,
more than 13,000 firms and other
organizations participate in EPA
partnership programs.
2009 Performance and Account-
ability Report, issued November
16,2009 (www.epa.gov/ocfo/
par/2009par/index.htm).
Measuring performance and
making adjustments to improve
results are essential to managing
programs effectively. EPA's per-
formance management system
continues to evolve and improve
and has matured to the point
where the Agency is recognized
as a federal government leader.
hJ
O
O
ID
EPA's Performance Management Framework
Strategic Planning
Strategic Plan
• Environmental Futures
• Long-term Planning/Measures/
Target Setting
Operations
and Execution
National Program Guidance
Regional Performance
Commitments
Performance Partnership
Agreements
Annual Planning
and Budgeting
Annual Plan and Budget
• Annual Measures/Target
Setting
• Internal Budget Hearings
C
Cfl
-------
U.S. Environmental Protection Agency
The mission of the Environmental Protection Agency is to protect human health and the environment
Administrator
Deputy Administrator
Provides overall supervision of the Agency
and is responsible directly to the President
LU
CO
tr
01
O
o
CM
Assistant Administrator
for Administration and
Resource Management
Manages EPA's human, financial,
and physical resources.
General Counsel
Provides legal service to c
Assistant Administrator
for Prevention. Pesticides.
and Toxic Substances
Regulates pesticides and chemicals to
protect public health and the
environment and promotes innovative
Region I
Boston, MA
Region 5
Chicago, IL
Assistant Administrator
for Air and Radiation
Assistant Administrator
for Research and
Development
Meets programs' research and
development needs and conducts
an integrated research and
Region 2
New York, NY
Region 6
Dallas, TX
Region 9
San Francisco, CA
Assistant Administrator
for Enforcement and
Compliance Assurance
Delivers compliance with U.S.
Assistant Administrator
for Solid Waste and
Emergency Response
Provides policy, guidance, and direction
Region 3
Philadelphia, PA
Region 7
Kansas City, KS
Region 10
Seattle, WA
Chief Financial Officer
Manages and coordinates EPA's
processes and provides fin
Assistant Administrator
for Environmental
Information
Region 4
Atlanta, GA
Region 8
Denver, CO
-------
FY 2009 Program Performance
Performance
Measures Met
Performance
Measures Not Met
Data Unavailable
Total Perform
Measures
In FY 2009, EPA met 108 of the 205 perfor-
mance measures established in its FY2009
Annual Performance Plan (www.epa.gov/ocfo/
budget/2009/2009ap/2009_annual_plan.pdf).
This represents 74.5 percent of the performance
measures for which data were available at the
time the FY2009 Performance and Accountability
Report was published.
EPA was not yet able to report on 60 of its 205
performance measures because final end-of-
year data were not available by the November
publication date. This delay in reporting can be
largely attributed to the Agency's emphasis on
longer term environmental and human health
outcomes, rather than on simpler, activity-based outputs. Environ-
mental results may not become apparent within a fiscal year. Assess-
ing environmental improvements often requires multiyear informa-
tion and time to understand and assess such factors as exposure and
the resulting impact on human health.
EPA did not meet 37 of its FY 2009 performance measures for a vari-
ety of reasons:
<: Factors outside the Agency's control, such as weather, technologi-
cal challenges, and population growth and land use patterns, often
influence results.
* Competing priorities or an unexpected demand for resources may
affect EPA's timelines.
* Collaborative efforts may be delayed or altered by changes in our
federal, state, or local government partners' schedules.
* Forecasting or estimating the Agency's ability to achieve perfor-
mance targets, especially given the increasing complexity of today's
environmental challenges, is inherently difficult.
FY 2009 Performance Measure Results
Performance of Data
Measures Available
108
37
60
74.48%
25.52%
NA
. erceru
Overall
53%
18%
29%
BEE!
EPA's FY 2009 Performance Measures
(Total Measures = 205)
EPA's FY 2009 Performance Measures
for Which Data Was Available
(Total Measures = 145)
I
-
It
Jl
III
0
>
r
IV)
o
o
(D
13
-------
Highlights of Environmenta
CO
Z)
cc
01
o
o
CM
Region 10 EPA Reports on Toxics in the
Columbia River Basin
In 2009, EPA released the first Columbia River Basin State
of the River Report for Toxics, a compilation of data about
four widespread contaminants in the basin and the risks
they pose to people, fish, and wildlife. The Region led a
team of more than 20 partner organizations to draw this
latest portrait of the toxic threats in the Columbia Basin,
which drains nearly 260,000 square miles across seven
states. http://yosemite.epa.gov/rlO/ecocomm.nsf/
Columbia/Columbia
Region 9 The American Reinvestment and
Recovery Act (Recovery Act) Saves Jobs
At the Iron Mountain Mine Superfund site, EPA has
spent $20.7 million in Recovery Act funds, which will
reduce cleanup time from three years to 18 months. Work
completed will enable the removal of 170,000 cubic yards
of contaminated sediments from the bottom of Keswick
Reservoir downstream from the mine and eliminate a
major threat to the Sacramento River ecosystem, the most
important salmon spawning grounds in California. Federal
hydropower facilities will be able to generate $3 million to
$6 million worth of additional peak power each year. The
project has created or saved more than 200 jobs.
www.epa.gov/region09/ironmountainmine
Region 7 EPA Conducts Massive Lead Clean-up
Through September 15, 2009, EPA Region 7 has cleaned
up lead-contaminated soil from 1,128 residential properties
at eight Superfund lead/mining sites in Missouri and Ne-
braska. Specifically, lead contamination has been removed
from 807 properties within the Omaha lead site, and the
remaining 321 cleanups occurred at sites in southeastern
and southwestern Missouri. Region 7's use of site-specific
contracts on these sites has enabled the Region to meet
100 percent of its small business goals. In FY 2009, Region
7 awarded all Superfund-American Reinvestment and
Recovery Act funding to small businesses.
www.epa.gov/region07/cleanup/npl_files/index.htm
Region 8 EPA Protects At-Risk Communities
Based on health risks documented by Region 8's remedial investigation, investi-
gations conducted by the Agency for Toxic Substances and Disease Registry, and
concerns expressed by the community and state political leaders, in June 2009
EPA determined that a public health emergency existed at the Libby Asbestos
Superfund Site in northwest Montana. This marked the first EPA determina-
tion under the Comprehensive Environmental Response, Compensation and
Liability Act that conditions at a site constitute a public health emergency.
The unprecedented determination underscored the need for further action and
health care for area residents who have been or may be exposed to asbestos. As
a result, the U.S. Department of Health and Human Services awarded a grant to
provide medical care to the residents of Lincoln County, while EPA continued
its expeditious elimination of human exposure pathways at the site.
www.epa.gov/region8/superfund/libby/index.html
Reg/on 6 BP Consent Decree Will Control Pollution
A settlement with BP Products North America Inc. resulted in
the company paying a penalty of $ 12 million for violations of the
Clean Air Act regulations. The settlement also requires BP to
spend more than $161 million on pollution controls and enhanced
maintenance and monitoring, and $6 million on a supplemental
project to reduce air pollution in Texas City. EPA estimates that
these actions will reduce emissions of benzene and other volatile
organic compounds by approximately 6,000 pounds annually,
providing a substantial benefit to the 4,700 people living less than
1 mile from the refinery, www.epa.gov/compliance/resources/cases/
civil/caa/bptexas.html
-------
Accomplishment, EPA
ons
Region 5 A Coal-Fired Plant Re-Powers With Renewable
Biomass Fuel
Region 5 will be home to the country's first electric utility to reduce
greenhouse gas emissions due to a Clean Air Act consent decree. The
conversion will make Ohio Edison's Burger facility the largest coal-fired
plant in the United States to re-power using primarily renewable biomass
fuels. The change will approach "carbon neutrality" because the carbon
dioxide (CO2) emissions from burning biomass will be offset by the ab-
sorption of CO2 by the vegetation grown to produce the fuel. In addition
to the 1.3-million-ton-per-year CO? reduction from the coal-fired opera-
tion, the agreement will reduce 14,000 tons of sulfur dioxide, 1,300 tons
of nitrogen oxides, and 700 tons of paniculate matter annually.
http://yosemite.epa.gov/opa/admpress.nsf/aS792a626c8dac098S2S73S900
400c2d/7eef89claSd3b6098S2S76100047a74d!OpenDocument
Region 4 School Chemical Clean-out Campaign
(SC3) Protects Students
Region 4 continues to demonstrate national leadership
with its School Chemical Clean-out Campaign (SC3)
program. In FY 2009, the SC3 program was responsible
for the removal of more than 78,500 pounds of chemicals
(including 180 pounds of mercury) from 110 schools,
impacting over 53,400 students.
www.epa.gov/region4/waste/rcra/sc3.htm
Region I Enforcement and Voluntary Actions
Curb Diesel Emissions
Region 1 helped alleviate asthma and other respiratory
diseases caused or exacerbated by exposure to diesel emis-
sions. The Region enforced federally approved anti-idling
regulations and encouraged voluntary partnerships with
the freight industry through the Agency's SmartWay
program. This two-pronged approach reduced millions of
pounds of particulate matter that can lead to respiratory
problems and greenhouse gases that contribute to climate
change, www.epa.gov/regionl/eco/diesel/idling.html
Region 2 Hudson River Dredging Removes PCBs
The long-awaited and historic dredging of the Upper
Hudson River to remove sediment contaminated with poly-
chlorinated biphenyls (PCBs) began in May 2009. The first
phase of the six-year project is being conducted under an
agreement with the General Electric Company, which plans
to remove 265,000 cubic yards of sediment from a 6-mile
stretch of the river. EPA is working closely with communi-
ties in the dredging area to minimize impacts, ensure their
concerns are heard, and convey critical information about
the project, www.epa.gov/hudson/
Region 3 Agencies Establish Enhanced Review
Process for Mountaintop Mining Permits
In FY 2009, EPA and the U.S. Army Corps of Engineers
jointly developed an enhanced review process (ERP) that
will ensure timely, consistent, and transparent review of
permit applications with the greatest potential to impact
water quality and drinking water in affected communities.
Region 3's Multi-criteria Integrated Resource Assessment
(MIRA) tool identified 79 permits for the ERP. MIRA
allowed decision-makers from EPA Regions 3, 4, and 5 to
reach consensus on the permits using a common set of data
for discussion and analysis.
www.epa.gov/region3/mtntop/index.htm
hJ
O
O
ID
C
Cfl
-------
Goaii: Clean Air and Global
Climate Change
Protect and improve the air so it is healthy to breathe, and risks to
human health and the environment are reduced. Reduce greenhouse gas
emissions by enhancing partnerships with businesses and other sectors.
Q
z
<
LU
O
z
<
s
a
O
LL
or:
LU
D_
O>
O
O
CM
O
Cfl
LL
10
Key Achievements
• Proposed finding that greenhouse
gases pose a threat. After a
thorough scientific review, EPA
issued a proposed finding that
greenhouse gases contribute to
air pollution that may endanger
public health or welfare. The
proposed finding identified
six greenhouse gases—carbon
dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluoro-
carbons, and sulfur hexafluo-
ride—that are at unprecedented
concentrations as a result of
human emissions and pose a
potential threat to current and
future generations. EPA received
nearly 400,000 comments during
ajune 2009 public comment pe-
riod and expects to issue a final
finding in FY 2010.
• Air quality monitoring near schools.
As part of a new air toxics monitor-
ing initiative launched in FY 2009,
EPA and state and local air pollu-
tion control agencies monitored
the air around schools for toxic air
pollutants. Air toxics are of poten-
tial concern because exposure to
high levels of these pollutants over
many decades could result in long-
term health effects. EPA and its
state and local partners will sample
outdoor air near selected schools
over a period of 60 days, analyze
the samples, and take action as
needed to ensure that nearby
industries are in compliance with
clean air regulations.
• California waiver to enforce
greenhouse gas emissions stan-
dards. EPA granted California's
waiver request enabling the state
to enforce its greenhouse gas
emissions standards for new mo-
tor vehicles, beginning with the
current model year.
• Greenhouse gas emissions stan-
dards for automobiles. The U.S.
Department of Transportation
(DOT) and EPA jointly proposed
a rule establishing a historic na-
tional program to improve vehicle
fuel economy and reduce green-
house gases. Under the proposed
program, which covers model
years 2012 through 2016, auto-
mobile manufacturers will be able
to build a single, light-duty na-
tional fleet that satisfies all federal
requirements, as well as California
and other state standards.
* Energy savings with ENERGY
STAR. In 1992, EPA introduced
ENERGY STAR, a voluntary
market-based partnership to
reduce greenhouse gas emis-
sions through increased energy
efficiency. To date, more than
15,000 organizations have
become ENERGY STAR part-
ners. Data for 2008, which EPA
obtained in 2009, demonstrate
that ENERGY STAR contrib-
uted to preventing 43 million
metric tons of greenhouse gas
emissions—equivalent to the an-
nual emissions from 29 million
vehicles—and saving more than
$19 billion in utility bills.
-------
GOAL 1 AT A GLANCE: CLEAN AIR AND GLOBAL CLIMATE CHANGE
FY 2009 Performance Measures
! Not Met = 0 Data Available After 11/16/09 = 28 (Total Measures = 30)
How Funds Were Used: Net Program Costs
(Dollars in Thousands)
Compliance and Clean Air and Global
Environmental
Stewardship
$805,240.6
Healthy
Communities
and Ecosystems
$1,455,733.9
Climate Change
$1,376,040.1
Preservation
and Restoration
Goal I Performance Measures
(FY 2009)
Source: FY 2009 Statement of Net Cost by Goal
Goal I Performance Measures
(FY 2008)
Goal 1 FY 2009 Performance and Resources
Strategic Objective
Objective 1 — Healthier Outdoor Air: Protect human health and the environment by attain-
ing and maintaining health-based air-quality standards and reducing the risk from toxic air
pollutants.
Objective 2 — Healthier Indoor Air: Healthier indoor air in homes, schools, and office buildings.
Objective 3 — Protect the Ozone Layer: Through worldwide action, ozone concentra-
tions in the stratosphere will have stopped declining and slowly begun the process of
recovery, and the risk to human health from overexposure to ultraviolet (UV) radiation,
particularly among susceptible subpopulations, such as children, will be reduced.
Objective 4 — Radiation: Working with partners, minimize unnecessary releases of
radiation and be prepared to minimize impacts to human health and the environment
should unwanted releases occur.
Objective 5 — Reduce Greenhouse Gas Emissions: Through EPA's voluntary climate
protection programs, contribute 45 million metric tons of carbon equivalent (MMTCE)
annually to the President's 18 percent greenhouse gas intensity improvement goal by
2012.
Objective 6 - Enhance Science and Research: Through 2012, provide sound science
to support EPA's goal of clean air by conducting leading-edge research and developing a
better understanding and characterization of human health and environmental outcomes.
Goal 1 Total
FY 2009
Obligations
(in thousands)
$992,246.6
$51,319.3
$19,174.1
$43,174.4
$151,512.3
$118,613.4
$1,376,040.1
%of
Goal 1
Funds
72%
4%
1%
3%
11%
9%
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
1 1
-------
h
Z
LU
s
z
o
o:
>
z
LU
O
n.
LU
cc
o:
LU
D_
0)
O
O
C\J
Challenges
EPA is working to integrate
climate programs with its
toxics and criteria pollut-
ant programs. The Agency
recognizes the need to de-
sign control programs with
criteria pollutant reduction
strategies that will reduce
smog, soot, and toxic air pol-
lutants; increase energy effi-
ciency; and promote cleaner
fuels. EPA will coordinate
its efforts to minimize the
burden on the regulated
community while maximiz-
ing pollution reduction
across all titles of the Clean
Air Act, as well as legislation
such as the Energy Indepen-
dence and Security Act.
FY 2010 will be the first
year in which sources of
greenhouse gases will track
their emissions. EPA must
prepare for implementing
the greenhouse gas report-
ing rule, including develop-
ing a database for reporting
and ensuring that data are
complete.
EPA and University of Michigan Research Health
Effects of Roadway Pollution on Children
In July 2009, EPA announced a $1.4 million joint study
with the University of Michigan on the health effects of
air pollution on children living near the nation's heavily
traveled thoroughfares. More than 45 million people in
the United States live within 300 feet of a four-lane road,
airport, or railroad. Researchers will study the types of pol-
lutants common near roadways, how people are exposed to
them, the extent of exposure, and the types and severity of
health effects.
EPA and the University of Michigan will study traffic-
associated pollution in Detroit and whether it could lead to
more severe asthma attacks in children ages 6 to 14. The
study will also explore whether traffic exposure has any ef-
fect on the prevalence of respiratory viral infections, and it
will help researchers improve the predictive capabilities of
computer models.
The research will be useful for policymakers developing
mitigation plans to reduce exposure to air pollution for
people living or working near roadways. State highway
planners and environmental agencies can use the science
to assess local impacts of vehicle emissions and determine
the need for and impact of future road projects.
12
-------
Key Achievements
• Evaluating drinking water
contaminants, in FY 2009, EPA
released its third list of drink-
ing water contaminants that are
known or anticipated to occur
in public water systems and may
require regulation. The list iden-
tifies 104 chemical contaminants
or groups and 12 microbes,
including pesticides, disinfection
byproducts, pharmaceuticals,
chemicals used in commerce,
waterborne pathogens, and algal
toxins. EPA will continue to
evaluate and collect data on the
contaminants and determine by
2013 whether or not to propose
drinking water regulations.
* Recovery Act funds. EPA con-
tinued to manage the Drinking
Water State Revolving Fund
(DWSRF) and Clean Water State
Revolving Fund (CWSRF) base
programs while obligating ad-
ditional funding provided under
the Recovery Act. As of Septem-
ber 30, 2009, of the $2 billion
in DWSRF Recovery Act funds,
100 percent have been obligated
through grants and Inter agency
Agreements, and 7 percent have
been executed. Of the $4 billion
in CWSRF Recovery Act funds,
99 percent have been obligated
through grants and Inter agency
Agreements, and 31 percent
of those have been executed.
Because most of the DWSRF
and CWSRF programs operate
distinctly, the execution rates
for Recovery Act funding are not
directly comparable. For more
information on Recovery Act
funding please visit:
www. ep a.gov/recovery
Mountaintop mining, in 2009,
EPA signed a Memorandum of
Understanding with the Depart-
ment of Interior and the U.S.
Army Corps of Engineers to min-
imize the adverse environmental
consequences of mountaintop
coal mining. Plans include short-
term actions to be completed in
2009 and longer term actions to
consider policy and regulatory
actions to reduce impacts from
mountaintop coal mining. EPA
has assessed the potential for all
pending surface mine projects to
cause significant environmental
harm and has designated 79
mines as warranting Enhanced
Coordination Procedures to
reduce impacts. This process is
currently underway for several
projects. For more information,
visit: www.epa.gov/owow/
wetlands/guidance/
mining-screening.html.
Water quality analysis. EPA's
Water Quality Analysis Simula-
tion Program is widely used by
EPA regions, states, and their
contractors for Total Maximum
Daily Load (TMDL) analyses.
In FY 2009, EPA updated the
program to improve its applica-
tion to estuaries and headwater
watersheds while expanding its
scientific capabilities, improving
its performance, and making
it more accessible to users. The
update will enable states and
water quality managers to better
assess mercury TMDL analyses
and the impacts of eutrophica-
tion (an increase in the concen-
tration of chemical nutrients in
an ecosystem).
• Reducing exposure to arsenic
and waterborne viruses, in FY
2009, EPA produced scientific
methods to more effectively
monitor pathogens in drinking
water sources, evaluate disinfec-
tion effectiveness, and assess
microbial health risks. As a
result of EPA's research on wa-
terborne pathogens, Wisconsin
recognized the need to control
exposure to viruses found in un-
derground sources of drinking
water. EPA's treatment technol-
ogy research and demonstration
program has provided cost-
effective solutions that small
utilities can adopt to improve
drinking water quality.
I
-
It
Jl
III
0
>
r
IV)
o
o
(D
13
-------
GOAL 2 AT A GLANCE: CLEAN AND SAFE WATER
FY 2009 Performance Measures
! Not Met = 7 Data Available After 11/16/09 = 7 (Total Measures = 36)
How Funds Were Used: Net Program Costs
(Dollars in Thousands)
Goal 2 Performance Measures
Compliance and
Environmental
Stewardship
$805,240.6
Healthy
Communities
and Ecosystems
$1,455,733.9
Clean Air and Global
Climate Change
$1,376,040.1
Land
Preservation
and Restoration
Source: FY 2009 Statement of Net Cost by Goal
Objective
Objective 2
Objective 3
Goal 2 FY 2009 Performance and Resources
Strategic Objective
FY 2009
Obligations
(in thousands)
%of
Goal 2
Funds
Objective 1—Protect Human Health: Protect human health by reducing exposure to
contaminants in drinking water (including protecting source waters), in fish and shell-
fish, and in recreational waters.
$3,215,682.0
36%
Objective 2—Protect Water Quality: Protect the quality of rivers, lakes, and streams
on a watershed basis and protect coastal and ocean waters.
$5,564,021.4
62%
Objective 3—Enhance Science and Research: By 2011, conduct leading-edge, sound
scientific research to support the protection of human health through the reduction of
human exposure to contaminants in drinking water, fish and shellfish, and recreational
waters and to support the protection of aquatic ecosystems—specifically the quality of
rivers, lakes, and streams, and coastal and ocean waters.
$155,846.9
2%
Goal 2 Total
$8,935,550.3
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
1 4
-------
Chemical Residues in Long Island Sound and State Fish Consumption Advisories
With funding from EPA's Long Island Sound Office in Region 2, Connecticut and New York
are determining the status of polychlorinated biphenyls (PCBs), mercury, and other chemical
residues in selected indicator fish species to assess their existing consumption advisories for
fish in the Long Island Sound.
The first phase of the study assessed striped bass and bluefish. In addition to measuring PCB
and mercury concentrations, the study analyzed temporal and spatial changes in PCB levels
in striped bass. The second phase includes an assessment of PCBs, mercury, cadmium, and
chlorinated dioxin and furans in American lobsters. Preliminary analyses show that PCB levels
in striped bass and bluefish sampled in 2006 and 2007 have decreased by 50 percent com-
pared to levels from the 1980s.
As a result, in June 2009, the Connecticut and New York Departments of Health updated their
fish consumption advisories for Long Island Sound. The updates provide advice depending on
a consumer's gender and age, as well as the size of the fish. For example, New York advice for
women of childbearing age and children under 15 changed from one meal every two months
to one meal per month of striped bass greater than 20 inches.
IV)
o
o
(D
~0
TJ
O
73
H
C
CO
m
Challenges
« Nonpoint source pollution
continues to be the leading
cause of water quality impair-
ment in the United States.
Agricultural activities, urban
development and runoff,
and hydro- and habitat
modification present ma-
jor challenges to protecting
and cleaning up watersheds.
Hydro-modification is the
alteration of the hydrologic
characteristics of coastal and
noncoastal waters, which in
turn could cause degrada-
tion of water resources. EPA
is continuing to encourage
watershed-based planning as
the most effective means of
identifying the technical solu-
tions for solving nonpoint
source pollution problems.
States assess about one-third
of the nation's waters, and
almost half (46 percent) of
these waters do not meet state
standards for fishing, swim-
ming, and other uses. In fact,
states are adding more water-
bodies to the Clean Water Act
Section 303(d) list of impaired
waters than they are taking
off the list by a rate of 2 to 1.
Between 2002 and 2008, states
added 4,346 waterbodies to
the list of impaired waters and
removed 2,505.
~0
u
O
H
m
O
H
O
z
1 5
-------
Goal 3: Land Preservation and
Preserve and restore the land by using
innovative waste management practices
and cleaning up contaminated
properties to reduce risk posed by
releases of harmful substances.
t
Q
z
<
LU
O
z
<
s
a
O
LL
o:
LU
D_
0)
O
O
(M
O
Cfl
LL
1 6
Key Achievements
* Preventing coal ash releases. The
failure of an ash disposal cell at
the Tennessee Valley Authority's
Kingston plant in December 2008
highlighted the issue of coal com-
bustion residuals (CCR) impound-
ment stability. In response, EPA
decided to assess the stability of
impoundments and similar man-
agement units that contain wet-
handled CCR In March and April
2009, EPA issued Information
Request Letters covering more
than 200 facilities and more than
500 surface impoundments. EPA
completed assessments and has
posted on its Web site final reports
assessing the structural integrity
for 43 CCR surface impound-
ments at 22 facilities, including
recommendations to ensure the
continued stability of the 43 units.
Please visit: www.epa.gov/waste/
nonhaz/industrial/special/fossil/
surveys2/index.htm#reports.
• Libby public health emergency.
In June 2009, EPA determined
that a public health emergency
existed at the Libby Asbestos
Superfund Site in northwest
Montana. This was the first time
EPA made a determination under
the Comprehensive Environmen-
tal Response, Compensation and
Liability Act (CERCLA) that con-
ditions at a site constitute a pub-
lic health emergency. EPA has
made progress in removing the
asbestos threat to the land and
air. Asbestos exposure is linked
to increased risks of lung cancer,
asbestosis, and respiratory
problems. EPA's cleanup efforts
have greatly reduced exposure;
however, actual and potential
releases of amphibole asbestos re-
main significant threats to public
health in the area.
• Superfund sites ready for antici-
pated use. Cleaning up Superfund
sites helps communities return
some of the nation's worst hazard-
ous waste sites to safe and produc-
tive uses. In FY 2009, the Agency
determined that 66 Superfund
sites were ready for anticipated
use, exceeding the annual target
of 65. For these sites, construction
remedies have been completed;
cleanup goals to reduce unaccept-
able risk that may affect current
and future land uses have been
achieved; and institutional con-
trols have been implemented. The
cumulative number of sites ready
for anticipated use is 409.
• Controlled contamination at Re-
source Conservation and Recovery
Act (RCRA) corrective action facili-
ties. In FY 2009, EPA continued
to focus on those hazardous waste
facilities presenting the greatest
risk to human health and the en-
vironment. EPA exceeded all three
targets for its list of hazardous
waste facilities requiring cleanup
or "corrective action" under RCRA.
• Cleanup of leaking underground
storage tank sites, in FY 2009,
EPA's state and tribal partners
cleaned up 12,944 leaking under-
ground storage tanks, including
49 in Indian Country. Petroleum
and other hazardous substances
released by leaking underground
storage tanks are considered ma-
jor potential sources of ground
water contamination.
-------
GOAL 3 AT A GLANCE: LAND PRESERVATION AND RESTORATION
FY 2009 Performance Measures
! Not Met = 2 Data Available After 11/16/09 = 2 (Total Measures = 27)
How Funds Were Used: Net Program Costs
(Dollars in Thousands)
Goal 3 Performance Measures
Compliance and
Environmental
Stewardship
$805,240.6
Healthy
Communities
and Ecosystems
$1,455,733.9
Clean Air and Global
Climate Change
$1,376,040.1
Source: FY 2009 Statement of Net Cost by Goal
Objective I
Objective 2
Objective 3
Goal 3 FY 2009 Performance and Resources
Strategic Objective
FY 2009
Obligations
(in thousands)
%of
Goal 3
Funds
Objective 1—Preserve Land: Reduce adverse effects to land by reducing waste genera-
tion, increasing recycling, and ensuring proper management of waste and petroleum
products at facilities in ways that prevent releases.
$260,598.8
6%
Objective 2—Restore Land: Control the risks to human health and the environment
by mitigating the impact of accidental or intentional releases and by cleaning up and
restoring contaminated sites or properties to appropriate levels.
$4,399,904.4
93%
Objective 3—Enhance Science and Research: Through 2011, provide and apply
sound science for protecting and restoring land by conducting leading-edge research,
which through collaboration, leads to preferred environmental outcomes.
$75,143.4
2%
Goal 3 Total
$4,735,646.6
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
1 7
-------
Nanomaterials
EPA outlined a new research strategy to better understand how manufactured nanomaterials
may harm human health and the environment. Nanomaterials are materials that are between
1 and 100 nanometers, which are approximately 1/100,000 the width of a human hair. These
materials are currently used in hundreds of consumer products, including sunscreen, cosmet-
ics, and sports equipment. EPA is working to determine the potential hazards of nanotech-
nology and to develop approaches to reduce or minimize any risks identified. As part of the
strategy, researchers are investigating widely used nanomaterials such as carbon nanotubes
(used in vehicles, sports equipment, and electronics) and titanium dioxide (used in paints,
cosmetics, and sunscreens). The research is being conducted in EPA's own laboratories and
by grant recipients as part of a collaborative effort with other federal organizations and the
international community.
z
LU
O
n
LU
cc
or:
O
LL
cc.
LU
D_
0)
O
O
CM
Challenges
Many states are finding it dif-
ficult to address their backlog
of hazardous waste facilities
awaiting permits. Nationally,
about half the states are un-
dergoing furloughs or reduc-
ing staff in their permitting
programs. While only a small
percentage of hazardous waste
facilities remain to be permit-
ted, these sites often involve
more complex permit actions.
While EPA continues to
believe that frequent inspec-
tions are one of the best
ways to ensure continuing
increases and improve-
ments in compliance by
owner/operators, one of
the challenges facing EPA's
Underground Storage Tank
Program is inspecting every
underground storage
tank across the country—
approximately 233,000—
every three years, as required
by the Energy Policy Act of
2005. States implementing
the program continue to
face myriad economic and
management issues, affect-
ing their ability to hire,
train, and retain qualified
inspectors.
18
-------
Goal4: Healthy Communities
and Ecosystems
Protect, sustain, or restore the health of people, communities, and ecosystems
using integrated and comprehensive approaches and partnerships.
r>'.n
I A:
MEXIC
Key Achievements
• Addressing Chemical and Pesticide
Risks. In 2009, EPA announced
a comprehensive approach to
enhancing chemical management
under existing laws and released
a set of essential principles for
reforming chemical management
legislation to help inform efforts
to strengthen the Toxic Substances
Control Act (TSCA). For more
information, visit: www.epa.gov/
oppt/existingchemicals/pubs/
principles.html. EPA continued to
ensure pesticides are used in a man-
ner that is protective of people and
the environment while providing a
safe and abundant food supply.
• Restoring and enhancing wet-
lands. EPA and its partners are
making progress in restoring
and enhancing wetlands. In FY
2009,103,507 wetland acres were
restored or enhanced through
Five-Star Restoration Grants, the
National Estuary Program, Sec-
tion 319 nonpoint source grants,
and Brownfields grants.
• Drinking water and wastewater
services along the U.S.-Mexico
border. Data that became avail-
able this year show that in FY
2008,1,584 homes out of 98,515
(2003 baseline) that lacked po-
table water service connections
in the U.S.-Mexico border region
were provided with connections
to drinking water systems, and
31,686 homes out of 690,723
(2003 baseline) that lacked waste-
water service connections received
wastewater services. In addition,
nine water and wastewater proj-
ects were approved for construc-
tion in the border region which,
when completed, are expected to
benefit more than 90,000 people.
• Improving drinking water in the
Pacific Island Territories. As of
June 30, 2009, 80 percent of the
Pacific Island Territory popula-
tion served by community water
systems received drinking water
meeting all applicable health-
based drinking water standards,
up from a baseline of about 39
percent in 2003.
• Environmental justice grants, in
March 2009, EPA awarded ap-
proximately $800,000 in grants
to address environmental and
public health issues in communi-
ties facing environmental justice
challenges. For more informa-
tion on EPA's environmental
justice grants, please visit:
www.epa.gov/compliance/
environmentaljustice/grants/
index.html.
• Managing chemical risk.
EPA and organizations world-
wide use the Agency's ToxRefDB
database (www.epa.gov/ncct/
toxrefdb/), which provides more
than 30 years and $2 billion
of animal testing results for a
variety of research and regula-
tory applications, including
EPA's ToxCast™ (www.epa.gov/
ncct/toxcast/) chemical screen-
ing program. ToxCast can screen
thousands of environmental
chemicals and help set priorities
for further testing. In FY 2009,
ToxCast generated compre-
hensive bioactivity profiles for
more than 300 chemicals in
hundreds of assays mapping to
human toxicity pathways and
disease processes. In addition,
EPA launched the screening of
700 additional chemicals and
partnered with Pfizer to leverage
$100 million in toxicity data.
i
-
it
ji
III
0
>
r
IV)
o
o
(D
TJ
1 9
-------
GOAL 4 AT A GLANCE: HEALTHY COMMUNITIES AND ECOSYSTEMS
20
FY 2009 Performance Measures
5 Not Met = 23 Data Available After 11/16/09 = 18 (Total Measures = 79)
How Funds Were Used: Net Program Costs
(Dollars in Thousands)
Compliance and Clean Air and Global
Environmental Climate Change
Stewardship
Goal 4 Performance Measures
$805,240.6
$1,376,040.1
Healthy
Communities
and Ecosystems
$1,455,733.9
Preservation
and Restoration
Source: FY 2009 Statement of Net Cost by Goal
Objective
Objective 2
Goal 4 FY 2009 Performance and Resources
Strategic Objective
Objective 1—Chemical and Pesticide Risks: By 2011, prevent and reduce pesticide
and industrial chemical risks to humans, communities, and ecosystems.
Objective 2—Communities: Sustain, clean up, and restore communities and the eco-
logical systems that support them.
Objective 3—Restore and Protect Critical Ecosystems: Protect, sustain, and restore
the health of critical natural habitats and ecosystems.
Objective 4—Enhance Science and Research: Through 2011, identify and synthesize
the best available scientific information, models, methods, and analyses to support
Agency guidance and policy decisions related to the health of people, communities, and
ecosystems. Focus research on pesticides and chemical toxicology; global change; and
comprehensive, cross-cutting studies of human, community, and ecosystem health.
Goal 4 Total
Objective 3
FY 2009
Obligations
(in thousands)
Objective 4
%0f
Goal 4
Funds
$488,428.0
$323,205.6
$223,447.5
$420,652.8
$1,455,733.9
34%
22%
15%
29%
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
Challenges
In its January 22, 2009 bien-
nial update, the Government
Accountability Office (GAO)
added EPA's Processes for As-
sessing and Controlling Toxic
Chemicals to its list of federal
programs, policies, and opera-
tions that are at "high risk"
for waste, fraud, abuse, and
mismanagement or in need of
broad-based transformation.
GAO noted that EPA "requires
additional authority than
currently provided [in TSCA]
to obtain health and safety
-------
Chesapeake Bay
In May 2009, President Obama signed Executive Order 13508, for the Chesapeake Bay "to
protect and restore the health, heritage, natural resources, and social and economic value of the
nation's largest estuarine ecosystem and the natural sustainability of its watershed." The order
charged EPA with 1) developing recommendations to improve several important resource and
programmatic areas for the Chesapeake Bay, 2) coordinating a strategy for implementing recom-
mendations that achieve environmental goals, and 3) creating an annual Chesapeake Bay Action
Plan that describes how federal funding will be put toward Bay restoration in the future.
FY 2009 saw continued improvements to the health and sustainability of the Bay. At least 34.9
million fewer pounds of nitrogen and 5.9 million fewer pounds of phosphorus have entered the
Chesapeake Bay each year from 1985 to 2008, improving water quality for submerged aquatic
vegetation, fish, and shellfish. Additionally, data for 2008 that became available in FY 2009
show that between 1996 and 2008, 6,172 miles of forest buffer were planted along streams
and shorelines throughout the Chesapeake Bay watershed, improving water quality in local
streams and rivers and reducing nutrient and sediment pollution loads to the Bay.
Addressing the Challenge. Monitoring data continues to show that the Chesapeake Bay has
poor water quality, degraded habitats, and low populations of many species of fish and shell-
fish. The Chesapeake Bay and its rivers are heavy with nitrogen, phosphorus, and sediment
from agricultural operations, urban and suburban runoff, wastewater, airborne contaminants,
and other sources. The excess nutrients and sediment lead to murky water and algae blooms,
which block sunlight from reaching underwater bay grasses and create low levels of oxygen
for aquatic life, such as fish, crabs, and oysters. To address these problems, EPA is leading a
major initiative to establish and oversee achievement of a strict "pollution diet" to restore the
Chesapeake Bay and its network of local rivers, streams, and creeks. EPA is working with its
state partners to set restrictions on nutrient and sediment pollution through a Total Maximum
Daily Load, or TMDL, a regulatory tool of the federal Clean Water Act that will be backed by a
series of accountability measures to ensure cleanup commitments are met. The Bay TMDL will
be the largest and most complex ever developed, involving six states and the District of Co-
lumbia and the impacts of pollution sources throughout a 64,000-square-mile watershed. Part
of this new strategy to speed up the pace of Bay restoration includes setting specific two-year
milestones for each jurisdiction to reduce pollution to the Bay and its rivers, as well as
"contingencies" and "consequences" for falling short. For morainformation on EPA's involve-
ment with Chesapeake Bay, please visit: www.epa.gov/chesajS8jgkebaytmdl/.
IV)
o
o
(D
~0
TJ
O
73
H
C
CO
m
~0
u
O
H
m
O
H
O
z
information from the chemi-
cal industry and to shift more
of the burden to chemical
companies to demonstrate
the safety of their products."
Pending congressional action,
EPA is acting as aggressively
as possible using authorities
currently provided under
TSCA to reduce known risks
for priority chemicals of
concern and to obtain infor-
mation necessary to assess
hazards posed by chemicals
currently in use.
21
-------
GoalS: Compliance and
Environmental Stewardship
Protect human health and the environment through ensuring compliance with environmental
requirements by enforcing environmental statutes, preventing pollution, and promoting environ-
mental stewardship. Encourage innovation and provide incentives for government, business, and the
public that promote environmental stewardship and long term sustainable outcomes.
Q
z
<
LU
O
z
<
s
OL
O
LL
or:
LU
D_
O>
O
O
CM
O
0)
LL
22
Key Achievements
• Improving Clean Water Act
enforcement, in July 2009, EPA
announced that it would develop
an action plan to address the
challenges confronting the Clean
Water Act enforcement pro-
grams of EPA and the states. The
final plan, developed with public
input and released October IS,
2009, recommends: 1) revamp-
ing the water enforcement
program to focus on pollution
sources that present the great-
est threat to water quality; 2)
strengthening oversight of state
permitting and enforcement
programs to improve results and
provide greater consistency; and
3) improving transparency by
using 21st century technology
tools to provide more accurate
and useful information to the
public and increase pressure for
better compliance performance.
For more information on the
action plan, visit: www.epa.gov/
oecaerth/civil/cwa/cwaenfplan.
html.
• Eliminating priority chemicals in
waste. EPA's National Partner-
ship for Environmental Priori-
ties, which comprises a variety
of public and private companies
and organizations that gener-
ate wastes containing one or
more priority chemicals, greatly
exceeded the Agency's FY 2009
goal of eliminating 1 million
pounds of these chemicals by
achieving a 7-million-pound
reduction of chemicals.
Identifying green product choices
for consumers. EPA's Design for
the Environment Program labels
products that the Agency has re-
viewed and found to be safer for
human health and the environ-
ment. In FY 2009, Design for the
Environment recognized nearly
750 products from 96 partners.
The Design for the Environment
label is now on more than 1,500
products, and consumers and
institutions have purchased tens
of millions of these products.
For more information, visit:
www. ep a. go v/dfe/.
Recognizing the right of tribes as
sovereign nations, in FY 2009,
EPA Administrator Jackson reaf-
firmed the Agency's Indian Policy,
which recognizes that the United
States has a unique legal relation-
ship with tribal governments
based on treaties, statutes, execu-
tive orders, and court decisions.
EPA recognizes the right of tribes
as sovereign governments to self-
determination and acknowledges
the federal government's trust
responsibility to tribes. More
information is available at:
www.epa.gov/tribalportal/
basicinfo/epa-policies.htm
• Understanding the impact of
biofuels. In FY 2009, EPA applied
aMARKAL (MARKet ALloca-
tion) energy modeling system to
better understand how increased
biofuel use will impact energy
production and use patterns in
the United States and to identify
any unintended environmental
implications of crop production
and energy conversion options.
EPA's Region 7 is using this tool
to consider the environmental
impacts of increased biofuel pro-
duction and how best to respond.
-------
GOAL 5 AT A GLANCE: COMPLIANCE AND ENVIRONMENTAL STEWARDSHIP
FY 2009 Performance Measures
14 Not Met = 2 Data Available After 11/16/09 = 5 (Total Measures = 21)
How Funds Were Used: Net Program Costs
(Dollars in Thousands)
Compliance and
Environmental Clean Air and Global
Stewardship
$805,240.6
CO/ * —
Healthy
Communities
and Ecosystems
$1,455,733.9
8%
Goal 2 Performance Measures
Land
Preservation Clean and
and Restoration Safe Water
$4,735,646.6 $8,935,550.3
Source: FY 2009 Statement of Net Cost by Goal
Objective I Objective 2 Objective 3 Objective 4
Goal 5 FY 2009 Performance and Resources
Strategic Objective
Objective 1 — Improve Compliance: By 2011, maximize compliance to protect human
health and the environment through enforcement and other compliance assurance ac-
tivities by achieving a 5 percent increase in the pounds of pollution reduced, treated, or
eliminated by regulated entities, including those in Indian Country.
Objective 2 — Improve Environmental Performance through Pollution Prevention and
Innovation: Improve environmental protection and enhance natural resource conser-
vation on the part of government, business, and the public through the adoption of
pollution prevention and sustainable practices that include the design of products and
manufacturing processes that generate less pollution, the reduction of regulatory barri-
ers, and the adoption of results-based, innovative, and multimedia approaches.
Objective 3 — Build Tribal Capacity: Assist all federally recognized tribes in assessing
the condition of their environment, help in building their capacity to implement environ-
mental programs where needed to improve tribal health and environments, and imple-
ment programs in Indian Country where needed to address environmental issues.
Objective 4 — Enhance Science and Research: Conduct leading-edge, sound scientific
research on pollution prevention, new technology development, socioeconomic sustain-
able systems, and decision-making tools. By 2011, the products of this research will
be independently recognized as providing critical and key evidence in informing Agency
policies and decisions and solving problems for the Agency and its partners and stake-
holders.
Goal 5 Total
FY 2009
Obligations
(in thousands)
$546,084.9
$121,464.0
$82,647.8
$55,043.9
$805,240.6
%of
GoalS
Funds
68%
15%
10%
7%
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
-------
Challenges
h
Z
LU
s
z
o
o:
>
z
LU
O
n.
LU
cc
o:
LU
D_
0)
O
O
C\J
4 Over the last 30 years, water
enforcement focused mostly
on pollution from the biggest
individual sources, such as
factories and sewage treat-
ment plants. While these
efforts have helped to reduce
pollution, the regulated
universe has expanded from
the roughly 100,000 tradi-
tional point sources to nearly
a million far more dispersed
sources, such as animal feed-
ing operations and storm-
water runoff. Many of the
nation's waters are still not
meeting water quality stan-
dards, and the threat to drink-
ing water sources is growing.
To address these challenges,
EPA will revamp federal and
state enforcement to tackle
sources posing the biggest
threats to water quality, while
intensifying vigorous civil and
criminal enforcement against
traditional end-of-pipe pollu-
tion.
* EPA's increasing emphasis on
green building, sustainable
energy systems, and material
flow management demon-
strates the Agency's sharpened
focus on sustainability. In
2009, the Board of Scientific
Counselors (a Federal Advi-
sory Committee of scientists
and engineers) recognized
the positive impact of EPA's
Sustainability Research Pro-
gram but also observed that
"[tjhere is a need for a better
method to deliver informa-
tion on sustainability with a
true partnership among all
stakeholders, including indus-
Pollution Prevention
Through a Pollution Prevention Grant, EPA Region 2
partnered with the Green Purchasing Institute (GPI) on
a project to promote mercury reduction in compact fluo-
rescent light bulbs. GPI worked directly with industry and
government agencies to influence their procurement activi-
ties. The project has prevented the release of hundreds
of kilograms of mercury into the environment as a result
of outreach activities with state and city governments
and private sector corporations. The city of New York, for
example, became the first major municipality to effec-
tively prohibit the purchase of incandescent lamps and to
establish mercury, efficiency, and lamp life standards for
all lamps procured by city agencies. For more information
go to: www.epa.gov/region02/p2/.
try. The expertise and the will
to fill this critical need within
EPA are there, and the current
leadership and plan are in
place to make this transition"
(www.epa.gov/osp/bosc/pdf/
sust0907rpt.pdf). EPA will
focus on addressing this chal-
lenge in 2010 and 2011.
24
-------
V
eSb
•• i&*5-> ~
Financial Performance
Sound Financial Management
FY 2009 Net Cost by Goal
EPA continues to adhere to the
highest standards for finan-
cial management to carry
out its mission to protect human
health and the environment. For
the 10th consecutive year, EPA's
Office of Inspector General (OIG)
issued an unqualified or "clean"
opinion on the Agency's financial
statements. This means that the
auditors can provide reasonable
assurance that EPA's financial
statements are presented fairly in
all material respects and that they
conform with generally accepted
accounting principles for the fed-
eral government. In simple terms,
a clean opinion means that the
Agency's numbers are reliable. For
details see "Section III, Financial
Statement," in the Fiscal Year 2009
Performance and Accountability Report
(www.epa.gov/ocfo/par/2009par/
par09fin_statements.pdf).
Assets—What EPA Owns and
Manages
EPA's assets were worth $24 billion
at the end of FY 2009. More than
92 percent of EPA's assets fall into
two categories: 1) its Fund balance
with the Department of the Trea-
sury, the equivalent of the Agency's
"checkbook" balance available to
pay expenses, and 2) investments
that will be used to pay for future
Superfund or leaking underground
storage tank cleanups. All of EPA's
investments are backed by U.S. gov-
ernment securities.
Liabilities—What EPA Owes
EPA's liabilities were $2 billion at
the end of FY 2009, an increase
of $304 million from the FY 2008
level. EPA's largest liability, its com-
bined accounts payable and accrued
liabilities, includes $942 million
and represents 43 percent of what
the Agency owes.
Goal 4,
Healthy Communities
and Ecosystems
$1,342,869(16%)
Goal 5,Compliance
$814,243 (10%)
Goal I, Air
$1,043,780
(13%)
Net Cost of Operations—How
EPA Used Its Funds
The net cost of operations is the
difference between the costs in-
curred by EPA programs and EPA's
receipts. The chart above shows how
EPA divided its funds among its five
program goal areas in FY 2009.
EPA's FY 2009 Total Assets and Liabilities
Total Assets
Total Liabilities
Net Position
Net Cost of Operations
$ 24,376,273
$ 2,170,782
$ 22,205,491
$ 8,147,351
$ 17,257,851
$ 1,866,843
$ 15,391,008
$ 7,999,546
Increase (Decrease)
41%
16%
44%
2%
ho
O
o
(D
TJ
25
-------
d the American Recovery
and Reinvestment Act of 2009
Q
z
<
LU
O
z
<
s
OL
O
LL
or:
LU
D_
O>
O
O
(M
O
0)
LL
26
On February 17, 2009, Presi-
dent Obama signed the
American Recovery and
Reinvestment Act of 2009 (Recovery
Act) to restore jobs for American
workers, put vital resources back
into communities, and restore
stability to the nation's economy.
The Recovery Act entrusts EPA
with $7.22 billion for programs and
projects for which the Agency has
legislative authority and oversight
responsibility. Recovery Act funds
provided to EPA promote "green"
jobs and a healthier environment
and allow the Agency to leverage the
investments it makes to maximize
environmental progress. EPA is
awarding designated Recovery Act
funds to states under competitive
grants as quickly as possible.
To ensure transparency, grant
announcements are posted on:
www.recovery.gov. All funding is
being monitored by EPA's OIG,
which has received $20 million in
Recovery Act funding for oversight
and review. For the most current
information pertaining to EPA and
implementation of the Recovery
Act, visit: www.epa.gov/recovery/
index.html.
American Recovery and Reinvestment Budget Status as of October 1, 2009
_. , . . . _ . . , . . ,. , , . . , ,,., ,. , _ ... , Percent Percent
Program or Project Total Appropriation1 Total Obligated2 Expenditures3 „.. . E . .
Clean Water State Revolving Fund4
Drinking Water State Revolving Fund4
Diesel Emissions Grants
Brownfields
Leaking Underground Storage Tanks
Cooperative Agreements
Leaking Underground Storage Tanks/
Underground Storage Tanks
Superfund Hazardous Waste Cleanup
Audits, Evaluations, and Investigations
Management and Oversight (M&O)5
$3,979,533,000
$1,969,467,000
$294,000,000
$96,500,000
$190,700,000
$6,300,000
$582,000,000
$20,000,000
$81,500,000
$3,971,936,532
$1,969,467,000
$293,996,311
$82,270,596
$190,226,145
$1,347,022
$564,688,210
$1,767,626
$12,463,042
$95,967,335
$44,785,513
$4,709,930
$214,140
$658,068
$0
$38,983,006
$1,629,241
$7,508,785
99.80%
100.00%
100.00%
85.30%
99.80%
21.40%
97.00%
8.80%
15.30%
2.40%
2.30%
1.60%
0.20%
0.30%
0.00%
6.70%
8.10%
9.20%
Agency Total $7,220,000,000 $7,088,162,484 $194,456,018 98.20% 2.70%
1 An appropriation is a law that gives federal agencies authorization to incur obligations and make payments for a specific purpose.
2 An obligation is a binding agreement that will result in disbursement of money.
3 An expenditure is the money paid out by the Agency.
4 States may change funding from one state revolving fund to another. At the end of FY 2009 two states had done so, changing the totals.
5 The Recovery Act authorized EPA to move a certain level of funding to the Environmental Programs and Management (EPM) account for M&O activities.
-------
EPA Programs Receiving Funding Under the Recovery Act as of October 2009
(Total: $7.2 Billion)
Reductions in Emissions
from Diesel Engines
$300,000,000
Brownfields Program
$100,000,000
Hazardous Waste Cleanup
at Superfund Sites
$600,000,000
Cleanup of Leaking
Underground Storage Tanks
$200,000,000
Recovery Act Funding for a Cleaner, Healthier Environment—EPA Program Highlights
Water Projects. EPA awarded $86,811,000 to the New York State Department of Health to help New
York State and local governments finance many overdue improvements to water projects essential for
protecting public health and the environment.
Brownfields Program. EPA awarded a $200,000 Brownfields cleanup grant to the town of Sanford,
Maine, to clean up and redevelop the Sanford Mill site for commercial and residential mixed use.
In FY 2009, EPA awarded approximately $87 million in recovery funds for 104 assessment grants,
39 cleanup grants, three Revolving Loan Fund (RLF) grants, and 14 new job training grants; supple-
mental funds were provided to more than 40 existing RLF recipients.
Clean Diesel. The East Tennessee Clean Fuels Coalition was awarded $581,849 to reduce emissions
from truck stop engine idling. This clean diesel project, which will create jobs while protecting east
Tennessee's air quality, involves installing 50 truck electrified parking spaces to reduce nitrogen
oxide and fine particulate matter emissions caused by truck drivers who idle the heavy-duty, long-
haul trucks while resting. An estimated 270 tons of nitrogen oxides and 7.8 tons of fine particulate
matter will be prevented over a 10-year period, reducing premature deaths, asthma attacks, and
other respiratory ailments every year.
Superfund Cleanups. By day 200 after passage of the Recovery Act, EPA had met its goal of initiating
or accelerating cleanup work at 20 of the contaminated Superfund sites on the National Priorities
List and had obligated more than $400 million to accelerate ongoing cleanup activities or initiate
new construction projects. Superfund sites are often found in industrial areas hit hardest by the re-
cession. Additional Superfund cleanup work made possible through Recovery Act funding will boost
local economies by creating and maintaining jobs and protecting communities and the environment
from unacceptable risks.
Underground Storage Tank Cleanups. EPA awarded $1,436,000 to Maine to assess and clean up
underground storage tank leaks of petroleum. In the last quarter of FY 2009, Maine initiated more
than a half dozen assessments and cleanups. This money is part of $200 million appropriated under
the Recovery Act to address nationwide shovel-ready sites contaminated by petroleum from leaking
underground storage tank sites.
.
O
O
ID
C
Cfl
27
-------
Q
z
<
LU
O
z
<
s
OL
O
LL
or:
LU
D_
O>
O
O
CM
O
0)
LL
Management Integrity
EPA strives to manage taxpayer dollars efficiently
and effectively and ensure the integrity of its pro-
grams and processes to deliver the best results to all
Americans. The Federal Managers' Financial Integrity
Act (FMFIA) requires agencies to conduct an annual
evaluation of their internal controls over programs
and financial systems and report the results to the
President and Congress. As part of this effort, agen-
cies are required to report on the effectiveness of
internal controls over financial reporting.
Based on the results of EPA's FY 2009 evaluation, the
Administrator provided reasonable assurance on the
adequacy and effectiveness of EPA's internal controls
over programs and financial systems. For details see
"Section IV, Other Accompanying Information,"
in the FY2009 Performance and Accountability Report
(www.epa.gov/ocfo/par/2009par/par09_other_
accompanying_information.pdf).
Management Controls
To evaluate its internal controls over
financial reporting, the Agency re-
viewed 10 key financial processes and
tested 235 key controls. During its
audit of the Agency's financial state-
ments, however, EPA's OIG identified
several incongruities in the reporting
EPA's FY 2009 Key Management
Challenges Identified by OIG
1. Management of Recovery Act Funds
2. EPA's Organization and Infrastructure
3. Performance Measurement
4. Threat and Risk Assessment
5. Water and Wastewater Infrastructure
6. Meeting Homeland Security Requirements
7. Oversight of Delegation of States
8. Chesapeake Bay Program
9. Voluntary Programs
10. Safe Reuse of Contaminated Sites
of unearned revenue and accounts
receivable. These were required to
be reported as material weaknesses.
EPA has taken steps to correct these
weaknesses and expects to complete
the remaining corrective actions
by the end of the second quarter of
fiscal year 2010. Based on the results
of this evaluation and the OIG's
findings, the Administrator provided
reasonable assurance that, with the
exception of the weaknesses noted,
EPA's internal controls over financial
reporting were operating effectively.
28
-------
Fiscal Year 2009 Assurance Statement
The U.S. Environmental Protection Agency's (EPA's) management is responsible for establishing and
maintaining effective internal control and financial management systems that meet the objectives of the
Federal Managers' Financial Integrity Act (FMFIA). EPA conducted its assessment of the effectiveness of
internal control over the effectiveness and efficiency of operations and compliance with applicable laws
and regulations in accordance with OMB Circular A-123, Management's Responsibility for Internal Control.
Based on the results of this evaluation, no material weaknesses were found in the design or operation
of the Agency's internal controls over programmatic operations, and no financial management system
nonconformances were identified. Therefore, I can provide reasonable assurance that as of September
30, 2009, the Agency's internal controls over programmatic operations were operating effectively, and
the financial systems conform to governmentwide standards.
In addition, EPA conducted its assessment of the effectiveness of internal controls over financial reporting,
which includes safeguarding of assets and compliance with applicable laws and regulations in accordance
with the requirements of Appendix A of OMB Circular A-123. Based on the results of this evaluation, no
material weaknesses were found in the design or operation of internal controls over financial reporting as
of June 30, 2009. Subsequently, during the financial statement audit process, the Agency's Inspector
General identified several incongruities in the reporting of unearned revenue and accounts receivable that
are required to be reported as material weaknesses. EPA has already taken steps to correct these weak-
nesses by restating its FY 2008 financial statements. The Agency expects to complete the remaining
corrective actions by the end of the second quarter of fiscal year 2010. As a result, I can provide reason-
able assurance that, except for the unearned revenue and accounts receivable weaknesses, EPA's internal
controls over financial reporting were operating effectively as of September 30, 2009, and no other mate-
rial weaknesses were found in the design or operation of the internal controls over financial reporting.
Lisa
Administrator
November 9, 2009
To submit comments or questions on the FY2009 Performance and
Accountability Report—Highlights, please e-mail: ocfoinfo@epa.gov.
-------
Office of Planning, Analysis, and
Accountability (2724A)
United States Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, DC 20460
www.epa .gov/ocf o
EPA-190-S-09-001
February 2010
------- |