ENVIRONMENTAL AND FINANCIAL PROGRESS
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Message
From the Administrator
I am pleased to present the U.S. Environmental Protection Agency's Fiscal Year 2010 Financial and Program
Performance Highlights, a companion to our Fiscal Year 2010 Agency Financial Report and FY2010 Annual
Performance Report. This report briefly highlights the EPA's programmatic and financial accomplishments and
the challenges we faced during the past year.
Seven key priorities guided our work in FY 2010 and will continue to direct us. Grounded in science, transparency
and the rule of law, our priorities reflect the challenges and opportunities inherent in the EPA's mission to protect
human health and the environment.
Taking Action on Climate Change: During FY 2010, we affirmed decades of science and overcame years of
inaction to make our endangerment finding on greenhouse gases. This achievement led to the nation's first
greenhouse-gas-emissions standards for vehicles. We also finalized a reporting system for major emitters of
greenhouse gases, providing a better understanding of the sources of greenhouse gases and guiding efforts to
reduce emissions.
Improving Air Quality: American communities face serious health and environmental challenges from air pol-
lution. During FY 2010, we set the first new standards for sulfur and nitrogen oxide in more than two decades,
finalized rules on cement plants and used the Good Neighbor provision in the Clean Air Act to propose a trans-
port rule that could have up to $290 billion in health benefits for the American people.
Ensuring the Safety Of Chemicals: One of our priorities is to make significant progress in ensuring the safety of
chemicals in our products, our environment, and our bodies. During FY 2010, we laid the groundwork to more
aggressively utilize our authorities under the Toxic Substances Control Act, released our first-ever chemical man-
agement plans for several groups of substances, and announced the Administration's principles for legislative
reforms that would strengthen EPA's ability to protect public health and the environment from chemical risks.
Cleaning Up Our Communities: Using all the tools at our disposal, including targeted enforcement and compli-
ance efforts, we continue to focus on making our communities safer and healthier. We are accelerating these
efforts through our Superfund and brownfields programs, particularly to spur environmental cleanup and job
creation in disadvantaged communities.
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Protecting America's Waters: Today,
our water quality and enforcement
programs face complex challenges that
demand both traditional and innovative
strategies. To protect our waters, we've
used the Recovery Act funding and our
funding provided in FY 2010 to make
investments in clean water and drinking
water infrastructure.
Expanding the Conversation on
Environmentalism and Working for
Environmental Justice: To protect
low-income and minority populations
disproportionately impacted by environ-
mental and human-health hazards, we
are working to engage citizens through
rulemaking processes, enforcement and community-based programs and outreach.
Building Strong State and Tribal Partnerships: States and tribal nations bear important responsibilities for envi-
ronmental protection, but declining tax revenues and fiscal challenges are pressuring state agencies and tribal
governments. During FY 2010, we strengthened these partnerships and worked with states and tribes to direct
the money they received from the American Recovery and Reinvestment Act toward creating jobs and building
more sustainable communities.
Throughout FY 2010 we made a number of historic advances in fulfilling the EPA's mission to protect human
health and the environment. I am proud of these accomplishments, and we remain committed to this vital work
on behalf of every American and future generations.
CONTENTS
Message From the Administrator 1
Message From the Chief Financial Officer 2
Introduction 3
About EPA 4
FY 2010 Program Performance 10
Goal 1: Clean Air and Global Climate Change 11
Goal 2: Clean and Safe Water 14
Goal 3: Land Preservation and Restoration 17
Goal 4: Healthy Communities and Ecosystems 20
Goal 5: Compliance and Environmental Stewardship 23
FY 2010 Financial Performance 26
EPA Holds Itself Accountable... ...28
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From the
Chief Financial Officer
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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 (GHG) emissions
to encouraging conservation, reuse,
and recycling, EPA and its fed-
eral, state, local, community, and
tribal partners have made enormous
progress in protecting the nation's
health and environment. America's
air, water, and land are cleaner today
than they were a decade ago, and
increasingly, people are adopting a
"greener" way of living. Across the
country, people are making choices
to preserve resources, prevent pollu-
tion, and reduce their impact on the
environment.
As a steward of America's environ-
ment, EPA supports the nation's
environmental science, research,
education, assessment, and enforce-
ment efforts. Guided by its core
values of sound science, transpar-
ency, and the rule of law, the Agency
is dedicated to meeting future envi-
ronmental protection needs. EPA's
science provides the foundation
for Agency decision-making and
serves as the basis for understand-
ing and preparing to address future
environmental needs and issues. Its
commitment to open government
and transparency fosters improved
programmatic and financial per-
formance. By making information
on protecting the environment and
human health both available and
understandable, EPA advances its
work and furthers public trust in its
operations. EPA is using its authori-
ties to restore and preserve eco-
systems and protect children and
other vulnerable populations from
environmental risks by strength-
ening regulations to protect air,
water, and food and by maintaining
compliance.
While EPA and its federal, state,
local, community, and tribal part-
ners have made great advances in
protecting the nation's health and
environment, 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, reducing en-
ergy consumption, improving and
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
maintaining the nation's drinking
water and wastewater infrastruc-
ture, and other challenges inspire
the Agency and drive its commit-
ment to excellent performance and
strong, measurable results. EPA is
committed to providing individuals;
businesses; communities; and state,
local, and tribal governments with
access to accurate information to
help in addressing today's environ-
mental challenges.
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About EPA
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What We Do
EPA's mission is to protect human
health and to safeguard the natural
environment upon which life de-
pends. To achieve a cleaner, health-
ier environment for the American
people, the Agency:
"''-• Implements environmental laws
enacted by Congress by develop-
ing regulations and, where ap-
propriate, delegates authority to
states and tribes for implement-
ing programs and ensuring that
standards are met.
* Enforces environmental laws,
regulations, and standards by
taking legal action.
Provides grants to states, tribes,
nonprofit organizations, and ed-
ucational institutions to imple-
ment environmental programs
or support research to improve
science and promote best prac-
tices and innovative approaches.
Operates laboratories through-
out the nation.
* Supports pollution prevention
and energy conservation, spon-
soring voluntary partnerships
and programs with more than
10,000 industries, businesses,
nonprofit organizations, and
state and local governments on
more than 40 pollution preven-
tion 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.
Who We Are
EPA employs 17,000 people
from across the country, includ-
ing our Headquarters offices in
Washington, DC; 10 regional of-
fices; and more than a
dozen labs. Our staff
is highly educated and
technically trained,
comprising engineers,
scientists, and policy
analysts. Additionally,
EPA's workforce con-
sists of legal, public
affairs, financial, infor-
mation management,
and computer special-
ists. For more informa-
tion, visit EPA on the
Web at www.epa.gov.
How We Work
With Partners and
Stakeholders
Addressing today's complex en-
vironmental issues requires that
we work transparently and coop-
eratively; establish and enhance
working partnerships; and combine
the Agency's resources with those of
our federal, state, local, and tribal
partners.
EPA and states share responsibility
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.
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The Agency can authorize states
to carry out the day-to-day work
of implementing most national
environmental programs, pro-
vided they have the needed legal
authority and technical and
resource capacity. In FY 2010,
EPA increased its consultation
with state officials on rulemaking
and accelerated efforts to identify
opportunities for enhanced work
sharing and resource and work-
load flexibility. In testimony to
Congress on the FY 2011 Budget,
Administrator Jackson empha-
sized the need to provide strong
funding to support state govern-
ments. For more information
on EPA-state partnerships and
collaborative approaches to
improving environmental protec-
tion, visit www.epa.gov/ocir/
nepps/index.htm.
U.S. Environmental Protection Agency
The mission of the Environmental Protection Agency is to protect human health and the environment
Administrator
Deputy Administrator
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Provides overall supervision of the/
of the United States.
Assistant Administrator
for Administration and
Resource Management
General Counsel
Provides legal service to c
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Assistant Administrator
for Chemical Safety and
Pollution Prevention
Regulates pesticides and chemicals to
protect public health and the
environment and promotes innovative
programs to prevent pollution.
Region I
Boston, MA
r
Region 5
Chicago, IL
Assistant Administrator
for Air and Radiation
Inspector General
Conducts audits, evaluations, and
investigations of Agency programs
Assistant Administrator
for Research and
Development
Meets programs' research and
development needs and conducts
an integrated research and
development program for the Agency.
Region 2
New York, NY
Region 6
Dallas, TX
Assistant Administrator
for Enforcement and
Compliance Assurance
Delivers compliance with U.S.
environmental laws and promotes
Chief Financial Officer
Manages and coordinates EPA's
Assistant Administrator
for International
and Tribal Affairs
Assistant Administrator
for Environmental
Information
T
Assistant Administrator
for Solid Waste and
Emergency Response
T
Region 3
Philadelphia, PA
Region 4
Atlanta, GA
T
Region 7
Kansas City, KS
Region 8
Denver, CO
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Region 9
San Francisco, CA
Region 10
Seattle, WA
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EPA Priority Goals
(as seen in the FY 2011 Congressional Budget Justification
http://www.epa.gov/budget/)
EPA will improve the country's ability to measure and control
Green House Gas (GHG) emissions. Building a foundation for
action is essential.
• By June 15, 2011, EPA will make publicly available 100
percent of facility-level GHG emissions data submitted to
EPA in compliance with the GHG Reporting Rule.
• In 2011, EPA, working with the U.S. Department of Trans-
portation, will begin implementation of regulations designed
to reduce the GHG emissions from light-duty vehicles sold
in the United States starting with model year 2012.
Clean water is essential for our quality of life and the health
of our communities. EPA will take actions over the next two
years to improve water quality.
• Chesapeake Bay watershed states (including the District
of Columbia) will develop and submit Phase I watershed
implementation plans by the end of calendar year (CY)
2010 and Phase 11 plans by the end of CY 2011 in sup-
port of EPA's final Chesapeake Bay Total Maximum Daily
Load (TMDL), which will result in pollution limits needed
to restore Chesapeake Bay water quality.
• Increase pollutant reducing enforcement actions in waters
that do not meet water quality standards, and posts re-
sults and analysis on the web.
• Over the next two years, EPA will initiate the review/revi-
sion of at least four drinking water standards to strength-
en public health protection.
EPA will ensure that environmental health and protection is
delivered to our communities.
• By 2012, EPA will have initiated 20 enhanced brownfields
community-level projects that will include a new area-wide
planning effort to benefit underserved and economically dis-
advantaged communities. This will allow those communities
to assess and address a single large or multiple brownfields
sites within their boundaries, thereby advancing area-wide
planning to enable redevelopment of brownfields properties
on a broader scale. EPA will provide technical assistance;
coordinate its enforcement, water, and air quality programs;
and work with other federal agencies, states, tribes, and
local governments to implement associated targeted envi-
ronmental improvements identified in each community's
area-wide plan.
In Indian Country, EPA has the
direct responsibility to imple-
ment federal laws to protect
human health and the environ-
ment 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 2010, EPA finalized a Tribal
Consultation Plan, which will
be implemented in CY 2011.
The policy ensures consistent
implementation of EPA's 1984
Indian Policy and Executive
Order 13175, Consultation and
Coordination with Indian Tribal
Governments. It will result in
broad consultation and coordi-
nation with tribes and help to
strengthen EPA-tribal partner-
ships. For more information,
visit www.epa.gov/indian/
consultation/index.htm.
EPA understands, however, that
government alone cannot begin
to address all of the nation's
environmental challenges. The
Agency also works with business
and industry, nonprofit organi-
zations, environmental groups,
and educational institutions in
a wide variety of collaborative
efforts. Currently, more than
13,000 firms and other organiza-
tions participate in EPA partner-
ship programs.
How We Manage
and Improve
Performance
To carry out its mission to
protect human health and
the environment, EPA worked
toward five long-range goals dur-
ing FY 2010: clean air and global
climate change, clean water,
protected land, healthy com-
munities and ecosystems, and
environmental compliance and
stewardship. These five goals,
along with the 20 objectives and
numerous strategic targets that
support them, are presented in
EPA's 2006-2011 Strategic Plan,
available at www.epa.gov/ocfo/
plan/2006/entire_report.pdf
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EPA's Performance Management Framework
fl
Report on
the Environment
.
Strategic Planning
FY 201 I-2015 Strategic Plan
Futures Work
Results, Measurement,
Reporting, and Evaluation
(Accountability)
• Annual Performance Report
• Measures Central
• Executive Management Dashboard
Annual Planning
and Budgeting
• FY 2012 Annual Plan
and Budget
• Priority Goals
Operations
and Execution
NPM Guidance
Regional Performance
Commitments
State Grant Work Plans
Each year in its Annual Performance Plan and
Budget, EPA commits to annual performance
measures that support achievement of the
longer term goals and objectives outlined in
its Strategic Plan. EPA reported its program
results against its FY 2010 annual performance
measures and discussed progress toward
longer term objectives in its FY2010 Annual
Performance Report. EPA reports on its fiscal
results in its FY2010 Agency Financial Report.
In FY 2010, as part of the FY 2011 Budget, EPA
also established a limited number of two-year
priority goals, which communicate perfor-
mance improvements related to its priorities.
The Agency will accomplish these goals using
existing legislative authority and resources.
These priority goals align with EPA's long-term
strategic and annual measures and serve as key
indicators of progress toward the Agency's five
strategic goals. For more information, see
www.performance.gov/.
American Recovery and
Reinvestment Act of 2009 Reporting
Since the end of FY 2009, EPA has tracked pro-
gram performance for six key American Recovery
and Reinvestment Act (Recovery Act)-funded
environmental programs that invest in clean
water and drinking water projects, implement
diesel emission reduction technologies, clean up
leaking underground storage tanks, revitalize and
reuse brownfields, and clean up Superfund sites.
To ensure accountability and demonstrate prog-
ress toward meeting program goals, EPA provides
quarterly performance updates consistent with
the timing of quarterly recipient reporting and
weekly financial and activity reports. The Agency
also tracks performance for the Office of Inspec-
tor General work funded by the Recovery Act.
These performance reports are available at
http://epa.gov/recovery/plans.htmltfplans.
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Highlights of Environmenta
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Reg/on 10 Reducing Diesel Emissions in
Western United States
In 2010, EPA awarded over $18.4 million in Diesel
Emissions Reduction Ac: (DERA) gran: funds
:hrough :he West Coas: Collaborative (WCC). These
awards assis: states, cities, tribes, and non-profi:s
in reducing diesel emissions and protecting public
health. When combined wi:h matching funds of
$29.4 million from :he priva:e sec:or and s:a:e and
local air agencies in Alaska, Arizona, California,
Hawaii, Idaho, Nevada, Oregon, and Washington, :he
DERA gran: funds were leveraged into almos: $700
million in monetized health benefits from reduc-
tions in fine particular matter emissions. Upgrading
9,265 diesel engines resulted in emission reductions
of 11,034 tons of nitrogen oxide and 438 tons of
particulate matter. Many of these projec:s address air
toxic risks in environmen:al justice communities.
h::p://wes:coas:collabora:ive.org/
Region 9 Enhancing Wastewater Collection
and Treatment in Hawaii
A multibillion dollar settlemen: was reached wi:h :he
city and county of Honolulu, Hawaii, to address its
aging was:ewa:er collection and :rea:men: system. The
agreemen: calls for aggressive action to upgrade :he city's
sewage system and es:ablishes a long-term schedule for
cons:ruc:ion of secondary :rea:men: a: its Sand Island
and Honouliuli plants. The cost of this work is estimated
to exceed $3.5 billion. In addition, the city will pay a
$1.6 million fine to resolve violations of the federal
Clean Water Act for prior spills into the ocean. This set-
tlement will significantly reduce both the public health
risk caused by exposure to pathogens in raw sewage and
the amount of harmful pollutants entering Honolulu's
vibrant marine environment.
www.epa.gov/region9/water/npdes/compliance.html
Region 7 Educating Schools on Mercury
In 2010, Region 7 responded to 21 accidental mercury
spills and releases, many of which had occurred at
schools. On average, accounting for chemistry lab jars,
thermometers, thermostats, and barometers, each
school possesses approximately 2 Ib of elemental mer-
cury. A Region 7 cross-media team developed "Mercury:
An Educator's Toolkit," containing grade-appropriate
videos and pamphlets to inform and educate teachers,
children, and parents about the dangers of mercury.
The toolkit was distributed to all 7,463 elementary,
middle, and high schools in Region 7.
www.epa.gov/region07/mercury/
Region 8 Protecting Public Health From Adverse
Chemical Exposure
In 2010, Region 8 continued to protect and clean up our commu-
nities by removing 98,000 pounds of hazardous chemicals from
227 schools, protecting 79,000 children, including 17,000 Native
American students in 78 schools in Indian Country. Region 8 also
reduced public chemical exposure by cleaning up extensive lead
contamination at the Eureka Mills site in Utah, and removing
multi-contaminants at the Rocky Mountain Arsenal site in Colo-
rado, where 2,500 acres were added to an existing wildlife refuge.
www.epa.gov/region8/conservation_recycling/tghsi.html
www.epa.gov/region8/superfund/ut/eureka
www.epa.gov/region8/superfund/co/rkymtnarsenal/
Region 6 Improved Air Quality
Region 6 saw improved air quality in 2010, which allowed Houston,
Texas, and Baton Rouge, Louisiana—both previous severe ozone
nonattainment areas— to achieve attainment with the federal
eight-hour ozone standard and receive an exemption from Clean
Air Act penalty fees. This progress resulted from aggressive controls
in local, state, and federal clean air plans; new national air toxic and
motor vehicle rules; and targeted enforcement, including federal
consent decrees. Other Region 6 areas (Beaumont-Port Arthur,
Texas; El Paso, Texas; and West Memphis, Arkansas) are monitoring
attainment for both the eight-hour and one-hour ozone health-
based standards and have been redesignated to attainment status.
www.epa.gov/region6/index.htm
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Accomplishment, EPA
ons
Region 5 Funding the Great Lakes Restoration Initiative
In 2010, President Obania announced $475 million in new funding
for the Great Lakes Restoration Initiative (GLRI), the largest invest-
ment in the Great Lakes in two decades. The initiative targets some
of the most serious threats to the Great Lakes: invasive species, non-
point source pollution, and contaminated sediment. EPA awarded
more than 250 grants totaling approximately $150 million to states,
municipalities, universities, and nonprofit organizations.
www.greatlakesrestoration.us/
Region 4 Cleaning Up the Tennessee Valley Authority
(TVA) Kingston Fossil Plant
When a dike used to contain fly ash at the plant failed in Decem-
ber 2008, approximately 5.4 million cubic yards of fly ash were
released into a pond, three adjacent sloughs, and the main Emory
River channel. By September 2010, EPA and other state and
federal agencies had already completed the necessary time-critical
removal actions (well ahead of schedule) and seamlessly transi-
tioned to non-time-critical activities. Over 3.5 million cubic yards
of fly ash have already been removed from sensitive environments,
and actions are underway to permanently and safely close the
failed dredge cell.
www.epa.gov/region4/kingston/index.html
Region I Mitigating Urban Stormwater Pollution
Region 1 broke new ground with first-time use of
"residual designation" authority under the Clean
Water Act to remedy severe water pollution problems
in the Charles River watershed (metro Boston) and
Long Creek in Portland, Maine. Permits will require
extensive retrofitting of green infrastructure tech-
niques to restore the natural water cycle. Ninety-eight
percent of regulated areas near Long Creek signed on
to watershed restoration utility, and retrofit construc-
tion is underway.
www.restorelongcreek.org/
Region 2 Advancing New Jersey Site Cleanup
With American Recovery and Reinvestment
Act (ARRA) Funds
Supported by $30 million in ARRA funding, Region
2 accelerated the cleanup of contaminated soil and
debris at the Cornell Dubilier Electronics site, a
former electronic parts and capacitor manufacturing
facility in South Plainfield, New Jersey. The treat-
ment and disposal of the soil, which is contaminated
with semi-volatile organic compounds, metals, and
polychlorinated biphenyls, will allow redevelopment
to begin at the industrial park. Approximately 68 jobs
have been created, and more than 41,000 tons of soil
have already been treated. The project was included
in the White House list of the 100 Recovery Act Projects
That Are Changing America.
www.epa.gov/region02/superfund/npl/cornell/
Region 3 Implementing a Rigorous
"Pollution Diet" for the Chesapeake Bay
Region 3 is developing a rigorous pollution diet for
meeting water quality standards in the Chesapeake
Bay and its tidal tributaries through a Total Maxi-
mum Daily Load (TMDL) to be issued in 2010. The
nation's largest TMDL will include strict limits on
nitrogen, phosphorus, and sediment pollution and
will be informed by detailed implementation plans
drawn by the six watershed states and the District of
Columbia to meet the assigned pollution reductions.
The TMDL and an associated accountability frame-
work are serving as a model for the nation for the
assurance required by the Clean Water Act that point
and nonpoint source controls can be achieved to meet
water quality goals.
www.epa.gov/chesapeakebaytmdl
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FY 2010 Program Performance
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Performance
Measures Met
Performance
Measures Not Met
Data Unavailable
In FY 2010, EPA met 118 of the 211 perfor-
mance measures established in its FY2010
Annual Performance Plan (www.epa.gov/
ocfo/budget/2010/fy_2010_annual_plan.pdf).
This represents 78 percent of the performance
measures for which data were available at the
time the FY2010 Annual Performance Report was
published.
EPA was not yet able to report on 60 of its 211
performance measures because final end-of-
year data were not available by the February
publication date. In many cases, reporting
cycles—including some that are legislatively
mandated—do not correspond with the federal
fiscal year on which this report is based. Data
reported biennially, for example, are not available for this report,
but will be provided in future reports. Additionally, reporting
delays may be the result of the Agency's focus on longer term en-
vironmental and human health outcomes rather than on simpler,
activity-based outputs. Environmental outcome results may not
become apparent within a fiscal year, and assessing environmen-
tal improvements often requires multiyear information.
EPA did not meet 33 of its FY 2010 performance measures for a
variety of reasons:
* An unexpected demand for resources, or competing priorities.
* Dependence on collaborative efforts with state, tribal, and
local governments.
* Factors outside EPA's control, such as weather, technological
challenges, or population growth and land-use patterns.
EPA significantly exceeded its targets for several of its FY 2010
performance measures. In some cases, a new collaborative effort
or approach to the performance measure allowed EPA to accom-
plish even more than it had planned.
FY 2010 Performance Measure Results
(as of 2/7/2011)
inber of Measure
irmance with Data ..
sures Available
118
33
60
78%
22%
N/A
56%
16%
EPA's FY 2010 Performance Measures
(Total Measures = 211)
Goal Met
I 18 Measures
56% Goal Not Met
33 Measures
16%
Data Available After •
February 7, 201 I
60 Measures
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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 emis-
sions by enhancing partnerships with businesses and other sectors.
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Key Achievements
* Improving Air Quality. During
FY 2010, EPA continued to
implement the Clean Air Act
Amendments and other envi-
ronmental laws to reduce and
prevent harmful emissions
originating from motor vehicles,
fuels, power plants, and other
large sources that contribute
to outdoor air pollution. The
Agency issued a final new health
standard for sulfur dioxide and
strengthened the health-based
standard for nitrogen dioxide,
which, when fully attained, will
improve public health.
• Reducing Greenhouse Gases
(GHG). In April 2010, EPA
and the Department of
Transportation jointly estab-
lished new federal rules that
set the first-ever national GHG
emission standards and will
significantly increase the fuel
economy of all new passenger
cars and light trucks sold in the
United States. The rules will
conserve about 1.8 billion barrels
of oil nationally, reduce nearly
a billion metric tons of GHG
emissions over the lives of the
vehicles covered, and potentially
save the average buyer of a 2016
model year car $3,000 over the
life of the vehicle.
• Renewable Fuels Standard.
In February 2010, EPA final-
ized revisions to the National
Renewable Fuel Standard
Program, as required by the
Energy Independence and
Security Act of 2007. This final
action lays the foundation for
achieving significant reductions
of GHG emissions through the
use of renewable fuels, reduc-
tions of imported petroleum,
and further development and
expansion of the nation's
renewable fuels sector. When the
program is fully implemented in
2022, the expanded use of renew-
able fuels is expected to reduce
GHG emissions by 138 million
metric tons, equivalent to the
average annual emissions of 27
million vehicles.
Taking Action on Climate
Change. EPA continued to make
historic progress in addressing
climate change. In December
2009, the Administrator signed
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GOAL 1 AT A GLANCE: CLEAN AIR AND GLOBAL CLIMATE CHANGE
FY 2010 Performance Measures
= 0 Not Met = 1 Data Available After 2/7/11 = 27 (Total Measures = 28)
How Funds Were Used: Net Program Costs
(Dollars in Thousands)
Healthy
Communities
and Ecosystems
$1,952,626.3
16.4%
Compliance and
Environmental
Stewardship
$814,298.8 Clean Air and Global
6.9%
Climate Change
$1,205,805.4 ,
10.1%
Goal I Performance Measures
(FY20IO)
Source: FY 2010 Statement of Net Cost by Goal
Goal I Performance Measures
(FY 2009)
Goal 1 FY 2010 Performance and Resources
Strategic Objective
Objective 1 — Healthier Outdoor Air: Protect human health and the environment by
attaining 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
FY2010
Obligations
(in thousands)
$800,883.7
$46,006.6
$20,276.6
$49,761.6
$183,710.1
$105,166.8
$1,205,805.4
%of
Goal 1
Funds
66%
4%
2%
4%
15%
9%
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
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two distinct findings under
Section 202(a) of the Clean
Air Act regarding GHGs:
an Endangerment Finding
that six key GHGs threaten
the public health and wel-
fare of current and future
generations, and a Cause
or Contribute Finding that
the combined emissions of
these GHGs from new motor
vehicles and engines contrib-
ute to the GHG pollution that
threatens public health and
welfare.
• Response to the Deepwater
Horizon Oil Spill. In response
to the April 2010 Deepwater
Horizon oil spill, EPA re-
sponders were on the ground
monitoring the air quality in
the Gulf region. Responders
used portable, fixed, mobile,
and aerial monitoring to col-
lect thousands of air samples
from the Gulf Coast to test
for pollutants associated with
crude oil. EPA continues to
monitor the air along the
Gulf Coast using established
national monitoring networks
and community-scale pro-
grams. To date, all air moni-
toring and sampling results
have been significantly below
levels that would be expected
to cause any long-term health
effects.
• EPA Research on the Effects of
Roadway-Related Air Pollution.
EPA continues to investigate
how traffic emissions might
adversely affect the health
of people living, working, or
going to school near large
roads. To better understand
roadway air pollutants and
the extent to which they travel
Fuel Economy Label
In August 2010, EPA and the Department of Transportation
jointly proposed revisions to fuel economy labels for display
on new cars and light-duty trucks. Revised labels will help
consumers make comparisons across vehicle lines and
evaluate energy and environmental performance between
electric vehicles, plug-in hybrid electric vehicles, and con-
ventional gasoline-powered vehicles. The new labels will
be more comprehensive than current labels by including
fuel economy ratings, GHG emissions, and information on
smog-forming air pollut-
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from the road, EPA collaborat-
ed with the Federal Highway
Administration to perform a
measurement study around a
highway in Las Vegas, Nevada.
Findings from the Las Vegas
study will enhance the under-
standing of pollution associ-
ated with vehicles and inform
the development of a model to
estimate pollutant exposures
near roads.
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GOAL 2 AT A GLANCE: CLEAN AND SAFE WATER
FY 2010 Performance Measures
20 Not Met = 8 Data Available After 2/7/11 = 11* (Total Measures = 39)
This total includes two performance measures under Objective 3 for which the Agency did not collect data.
How Funds Were Used: Net Program Costs
(Dollars in Thousands)
Goal 1 Performance Measures
Healthy
Communities
and Ecosystems
$1,952,626.3
16.4%
Compliance and
Environmental
Stewardship
$814,298.8
6.9% Clean Air and Global
Climate Change
$1,205,805.4
10.1%
Land
Preservation
nd Restoration
Source: FY 2010 Statement of Net Cost by Goal
Objective I
Objective 2
Objective 3
Goal 2 FY 2010 Performance and Resources
Strategic Objective
FY2010
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.
$1,560,386.3
36%
Objective 2—Protect Water Quality: Protect the quality of rivers, lakes, and streams
on a watershed basis and protect coastal and ocean waters.
$2,587,289.7
60%
Objective 3—Enhance Science and Research: By 2011, conduct leading-edge,
sound scientific research to support the protection of human health through the reduc-
tion 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.
$155,779.8
4%
Goal 2 Total
$4,303,455.8
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
Lakes Assessment is the first
time a national monitoring
study of the overall condition
of lakes, ponds, and reservoirs
has been conducted using a
statistically valid approach.
For additional information,
see www.epa.gov/owow/
monitoring/reporting.html.
• Drinking Water Contaminant
List. EPA has developed a new
Drinking Water Strategy to
identify better ways to address
contaminants in groups,
improve drinking water
technology, address potential
risks using multiple statutes
if warranted, and work more
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Improving Water Quality
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, swimming, and other uses. In
fact, states are adding more waters to the Clean Wa-
ter Act Section 303(d) list of impaired waters than are
cleaned up to meet state standards. Since the baseline
was established in 2002, states added more than 4,000
waterbodies to the list of impaired waters, and 2,909
have been identified to now meet state standards. States
also made significant progress in restoring waters im-
paired by nonpoint source pollution, tackling this difficult
problem by developing and implementing watershed-
based plans that assess the sources of pollution and
identify solutions. In FY 2010, states remediated 65 wa-
ters that had been impaired by nonpoint source pollution,i
bringing the total number of remediated waters to 212.
Detailed summaries of each of these successful remedia-
tion projects may be reviewed at www.epa.gov/nps/suc-
cess. By the end of FY 2010, EPA and states completed
more than 42,000 EPA-approved waterbody pollutant
reduction plans (Total Maximum Daily Loads, orTMDLs).
A TMDL is a plan for ensuring that a waterbody meets the
Agency's water quality standards for specific pollutants.
For additional information, seewww.epa.gov/waters/ir/.
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closely with state partners. To
inform the new strategy, EPA
initiated a national dialogue
to engage stakeholders and
the public in developing in-
novative technical and proce-
dural approaches by holding
five Listening Sessions (one
in Chicago, Illinois; two in
Washington, D.C.; one in
Cincinnati, Ohio; and one
in Rancho Cucamonga,
California) and conduct-
ing an online Web dialogue.
For additional information,
see http://water.epa.gov/
lawsregs/rulesregs/sdwa/
dwstrategy/index.cfm.
• Safe Swimming Beaches.
Through its Beaches
Environmental Assessment
and Coastal Health Act
(BEACH Act) Program, EPA
is working with state, tribal,
and local government part-
ners to make beach advisory
information available to the
public. Under EPA's BEACH
Act Program, 37 states, ter-
ritories, and tribes monitored
3,819 beaches to ensure that
they were safe for swimming.
In FY 2010, coastal and Great
Lakes beaches were open 95
percent of beach season days.
For additional information,
see http://water.epa.gov/type/
o ceb/beaches/beaches_index.
cfm.
Fish Advisory Information.
EPA continued to work with
states and tribes to monitor
fish contaminants and issue
fish consumption advice,
as well as revisit existing
advisories to evaluate whether
contaminant levels in fish
tissue have improved enough
to revise those advisories.
EPA completed its report of
a study in which the Agency
measured mercury concen-
trations in fish tissue at
pre-1996 mercury advisory
sites revisited in 2007. The
study, which helped assess
the need for changes to
existing meal consumption
advice, concluded that an
estimated 58 percent of the
historic mercury advisory
sites studied warrant some
change to their existing fish
consumption advice. EPA also
completed a report evaluating
the effectiveness of outreach
for the Mississippi Delta fish
consumption advisory. For
additional information, see
http://water.epa.gov/scitech/
swguidance/fishshellfish/
fishadvisories/advisories_
index.cfm.
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Goal 3: Land Preservation
and Restoration
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.
Key Achievements
• Enbridge Oil Spill in Marshall,
Michigan. EPA served as the lead
federal agency on the response
to the Enbridge Oil Spill in FY
2010. This pipeline break in
Marshall, Michigan, released
more than 800,000 gallons of
crude oil into the Kalamazoo
River. EPA established 25 con-
tainment locations deploying,
at the height of the response,
more than 2,500 personnel and
more than 170,000 linear feet of
boom, and collecting more than
11.5 million gallons of oil/water.
These actions prevented the oil
from reaching Lake Michigan. In
coordination with other federal
agencies, EPA will continue over-
sight of this cleanup until resto-
ration activities are completed, a
process that will extend into next
year. For additional information,
see www.epa.gov/enbridgespill/.
• Engaging Communities in
Cleanup, Emergency Response,
and Management of Hazardous
Substances, in FY 2010, EPA
released the Community
Engagement Initiative
Implementation Plan, which
lays out 16 actions and activities
that the Agency will undertake
in the next few years to promote
greater community involvement.
Consistently and effectively
engaging local communities and
stakeholders in decision-making
processes strengthens EPA's pro-
grams and produces outcomes
that protect and support healthy
and sustainable communities.
For additional information,
see www.epa.gov/oswer/
engagementinitiative/index.htm.
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 combustion residu-
als (CCR) impoundment stability.
EPA is continuing to conduct
assessments and posting final re-
ports on the structural integrity of
impoundments, including recom-
mendations to ensure continued
stability. EPA is following up with
facilities to ensure that the recom-
mendations are implemented. In
FY 2010, the Agency also co-
proposed two alternative regula-
tions governing the disposal of
CCRs and conducted extensive
public outreach on these propos-
als. For additional information,
see www.epa.gov/osw/nonhaz/
industrial/special/fossil/.
• Cleaning Up Our Communities.
In FY 2010, EPA launched the
Integrated Cleanup Initiative
(ICI), a three-year strategy to
identify and implement im-
provements to the Agency's land
cleanup programs, accelerate
the pace of cleanups, address
a greater number of contami-
nated sites, and put these sites
back into productive use while
protecting human health and
the environment. For additional
information, see www.epa.gov/
oswer/integratedcleanup.htm.
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GOAL 3 AT A GLANCE: LAND PRESERVATION AND RESTORATION
FY 2010 Performance Measures
Met = 23 Not Met = 3 Data Available After 2/7/11 = 4* (Total Measures = 30)
This total includes two performance measures under Objective 3 for which the Agency did not collect data.
How Funds Were Used: Net Program Costs Goal 3 Performance Measures
(Dollars in Thousands)
Healthy
Communities
and Ecosystems
$1,952,626.3
16.4%
Compliance and
18
Stewardship
16
6-9% Clean Air and Global
Climate Change 4
$1,205,805.4
10.1% 12
Source: FY 2010 Statement of Net Cost by Goal
Objective I
Objective 2
Objective 3
Goal 3 FY 2010 Performance and Resources
Strategic Objective
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.
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.
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.
Goal 3 Total
FY2010
Obligations
(in thousands)
$261,372.2
$3,265,957.0
$83,225.1
$3,610,554.3
%of
Goal 3
Funds
7%
91%
2%
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
• Leaking Underground
Storage Tanks. The Leaking
Underground Storage Tank
Program promotes timely
and protective cleanups of
releases from federally regu-
lated underground storage
tanks containing petroleum
by enhancing state, local, and
tribal remediation efforts and
enforcement and response
capability. EPA continues
to focus on increasing the
efficiency of leaking under-
ground storage tank cleanups
nationwide. In FY 2010, EPA's
state and tribal partners
completed 11,591 cleanups of
leaking underground storage
tanks (including 62 cleanups
in Indian Country). For addi-
tional information, see www.
epa.gov/oust/ltffacts.htm.
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Deepwater Horizon Oil Spill in the Gulf of Mexico
In FY 2010, the United States experienced one of the worst environmental disasters in its
history, the April 20, 2010 Deepwater Horizon oil spill in the Gulf of Mexico. EPA immediately
began monitoring the area to determine potential public health and environmental concerns—
primarily air quality concerns from the spill and controlled burn emissions, waste management
plans, and water quality for dispersant-level monitoring—and preparing for the immediate and
long-term environmental fallout from the spill.
As one of many agencies supporting the U.S. Coast Guard-led federal response, EPA vice-
chaired the national response team for the response, which provided round the clock coordina-
tion among the involved federal agencies. Among its efforts, EPA:
• Collected and evaluated samples along the shoreline and beyond for chemicals related to oil
and dispersants in the air, water, sediment, and waste. EPA's monitoring and sampling ac-
tivities provided the Coast Guard, other federal agencies, states, and local governments with
data to inform decisions about seafood safety, habitat impacts, and beach closure issues.
• Supported and advised Coast Guard efforts to clean the reclaimed oil and waste from the
shoreline.
• Worked with the National Oceanic Atmospheric Administration to design a monitoring strat-
egy for subsea dispersant use, evaluated the toxicity of dispersants, and provided oversight
on the use of dispersants.
EPA mobilized its Headquarters and Regional Emergency Operations Center and established
a communications network to provide timely information to the public. The Agency's www.
epa.gov/BPspill site includes air, water, and sediment quality monitoring updates; Q&As on
pertinent issues; and links to additional response sites. EPA also used social media such as
Facebook and Twitter to provide a continuous flow of information, from major announcements
to notices of local developments and meetings.
In September 2010, the Administration outlined an aggressive Gulf Coast ecosystem restora-
tion plan, which led to the establishment of the Gulf Coast Ecosystem Restoration Task Force,
to be chaired by EPA Administrator Lisa Jackson. The task force, an intergovernmental advi-
sory body, is charged with coordinating restoration programs and projects in the Gulf region.
It will focus on efforts to create more resilient and healthy Gulf Coast ecosystems, while also
encouraging support for economic recovery and long-term health issues. As part of the resto-
ration, EPA will work with federal, state, and local partners and stakeholders to develop and
implement science-based restoration efforts.
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Goal4: Healthy Communities
and Ecosystems
Protect, sustain, or restore the health of people, communities, and ecosystems
using integrated and comprehensive approaches and partnerships.
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Key Achievements
• Assuring the Safety of Chemicals.
EPA completed hazard charac-
terizations for 270 high produc-
tion volume (HPV) chemicals
(chemicals produced/imported
in amounts greater than 1 mil-
lion pounds annually), a 65
percent increase over FY 2009.
The Agency published the final
HPV-2 Test Rule covering 19
chemicals; proposed a test rule
covering 29 HPVs; and proposed
significant revisions to the Toxic
Substances Control Act (TSCA)
Inventory Update Reporting
requirements to facilitate elec-
tronic reporting, develop more
robust exposure datasets on
approximately 7,000 chemicals,
and rapidly make data needed to
assess chemical safety available to
the public. For additional infor-
mation, see www.epa.gov/hpv/.
• Reducing Risks of Chemicals
Used in Commerce. EPA increased
its use of regulatory authorities
currently provided under TSCA
and other mechanisms to iden-
tify and address potential risks
from hazardous chemicals. In FY
2010, EPA completed and posted
eight action plans, which sum-
marize available information on
chemical hazards and exposure
pathways and identify potential
risk management actions EPA
is considering and specific steps
the Agency will take to address
concerns. For additional infor-
mation, see www.epa.gov/
oppt/existingchemicals/pubs/
ecactionpln.html.
Transparency in Chemicals. EPA
clarified confidential business
information policies for reviewing
chemical identity claims in health
and safety studies, thereby allow-
ing the public unprecedented ac-
cess to important chemical safety
information. This policy imple-
mented will reduce CBI claims and
thereby allow the public unprece-
dented access to important chemi-
cal safety information. For the first
time, EPA provided free online
public access in a download-
able format to the entire TSCA
Chemical Substance Inventory, or
approximately 84,000 chemicals
in commerce. EPA also added
information on more than 6,300
chemicals, including 30 years
of test data and other health
and safety data on a portion of
those chemicals and information
on more than 3,800 chemical
facilities regulated under the Toxic
Substances Control Act, to a pub-
lic database called Envirofacts. For
additional information, see
www.epa.gov/opptintr/newchems/
pubs/invntory.htm#datagov.
Chesapeake Bay Watershed, in
May 2010, EPA and its Chesapeake
Bay partner agencies released
the Strategy for Protecting and
Restoring the Chesapeake Bay
Watershed and in September 2010,
an action plan for implementa-
tion. The strategy includes using
rigorous regulation to restore
clean water, implementing new
conservation practices on 4 mil-
lion acres of farms, conserving 2
million acres of undeveloped land,
and rebuilding oyster beds in 20
tributaries of the bay. To increase
accountability, federal agencies
will establish milestones every two
years to measure actions taken to
achieve longer term environmental
goals. To restore clean water, EPA
will implement the Chesapeake
TMDL (a pollution diet for the
Chesapeake Bay and local wa-
terways), expand regulation of
urban and suburban stormwater
and concentrated animal feeding
operations, and increase enforce-
ment activities and funding for
state regulatory programs. For
additional information, see www.
epa.gov/region3/chesapeake/.
Reducing Disparity in Blood Lead
Levels. EPA is making signifi-
cant progress toward its goal of
reducing the disparity in blood
lead levels between low-income
and non-low-income children.
This gap stood at nearly 47
percent as recently as 2004. The
Center for Disease Control's
(CDC's) 2008 data show that
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GOAL 4 AT A GLANCE: HEALTHY COMMUNITIES AND ECOSYSTEMS
FY 2010 Performance Measures
Met = 53 Not Met = 16 Data Available After 2/7/11 = 13* (Total Measures = 82)
* This total includes two performance measures under Objective 3 for which the Agency did not collect data.
How Funds Were Used: Net Program Costs Goal 4 Performance Measures
(Dollars in Thousands)
Healthy
Communities
and Ecosystems
$1,952,626.3
16.4%
Compliance and
Environmental
Stewardship
$814,298.8
6-9% Clean Air and Global
Climate Change
$1,205,805.4
10.1%
30
25
Land
Preservation
and Restoration
Source: FY 2010 Statement of Net Cost by Goal
Objective I Objective 2 Objective 3 Objective 4
Goal 4 FY 2010 Performance and Resources
Strategic Objective
FY2010
Obligations
(in thousands)
%of
Goal 4
Funds
Objective 1—Chemical and Pesticide Risks: By 2011, prevent and reduce pesticide
and industrial chemical risks to humans, communities, and ecosystems.
$501,007.8
26%
Objective 2—Communities: Sustain, clean up, and restore communities and the eco-
logical systems that support them.
$294,615.3
15%
Objective 3—Restore and Protect Critical Ecosystems: Protect, sustain, and restore
the health of critical natural habitats and ecosystems.
$725,189.8
37%
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.
$431,813.4
22%
Goal 4 Total
$1,952,626.3
100%
Due to rounding, some numbers might add up to slightly less or more than 100%.
this gap has been reduced to
23.5 percent, exceeding EPA's
FY 2010 performance target
of 28 percent. EPA is commit-
ted to further reducing this
disparity to 10 percent or less
by 2014. (Low-income was
defined as a Poverty Income
Ratio [PIR] of less than or
equal to 1.3, as defined by the
CDC.) For additional informa-
tion, see www.epa.gov/lead/.
Environmental Justice Grants.
To expand the conversation
on environmentalist!!, EPA
has committed $1 million to
address environmental justice
challenges in 10 communities
over the next two years. These
10 communities will serve as
models for EPA's environmen-
tal justice efforts and help
highlight the disproportion-
ate environmental burdens
placed on low-income and
minority communities across
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In 2010, President Obama announced $475 million in new funding for the Great Lakes Res-
toration Initiative (GLRI), the largest investment in the Great Lakes in two decades. The Great
Lakes provide drinking water for more than 30 million Americans and underpin a multi-billion
dollar economy. Activities funded through this initiative will ensure that the Great Lakes meet
Clean Water Act standards for safe fish consumption and beach swimming, thus promoting safe
drinking water and providing a healthy ecosystem for fish and wildlife. The GLRI Action Plan,
released in February 2010 by the Great Lakes area governors, is driving progress, with goals,
objectives, performance measures, and targets in five focus areas. These include:
• Cleaning up the most polluted areas in the Great Lakes, including toxic hot spot areas of concern.
• Combating invasive species.
• Promoting nearshore health by protecting watersheds from polluted runoff.
• Restoring wetlands and other habitats.
• Working with strategic partners on accountability, monitoring and evaluation, and outreach.
The GLRI Action Plan, which covers FY 2010 through 2014, was developed by a task force
of 16 federal departments and agencies to implement the President's historic initiative. See
http://greatlakesrestoration.us/.
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the nation. EPA awarded $1.9
million in environmental
justice grants to 78 nonprofit
organizations and local gov-
ernments to address environ-
mental challenges and create
self-sustaining, community-
based partnerships focused on
improving human health and
the environment at the local
level. For additional informa-
tion, see www.epa.gov/
environmentaljustice/
index.html.
• Searchable Database on
Chemical Hazard, Exposure,
and Toxicity Data. EPA released
an online database that makes
it easier to find chemical infor-
mation. Released in 2010, the
Toxicity Reference Database
(ToxRefDB) electronically cap-
tures 30 years and $2 billion
of animal testing data previ-
ously available only in paper
documents scattered among
different sources. ToxRefDB
provides access to all available
hazard, exposure, and risk as-
sessment data associated with
chemicals, as well as previ-
ously unpublished studies
related to cancer, reproductive
toxicity, and developmen-
tal toxicity. For additional
information, see www.epa.gov/
ncct/toxrefdb/.
National Estuary Program. The
National Estuary Program
develops and implements
Comprehensive Conservation
and Management Plans to
protect and restore water qual-
ity and ecological integrity of
estuaries as well as critical hab-
itats. Data for FY 2010 show
that the 28 national estuary
programs and their partners
protected or restored 89,985
acres of habitat. Analysis of
the leveraging data shows that
the programs played a primary
role in leveraging $20 million
from EPA Section 320 of the
Clean Water Act and other
funds to obtain an additional
$274 million, which is a ratio
of $14 raised for every $1 of
the funds provided by EPA.
• International Impacts. Some
threats to Americans' health
and environment originate
outside U.S. borders. Many
pollutants can easily travel
across borders via rivers,
air and ocean currents, and
migrating wildlife. EPA em-
ployed a range of strategies to
help mitigate some of these
risks, including participating
in bilateral programs, cooper-
ating with multinational or-
ganizations, and contributing
to a set of measurable environ-
mental and health endpoints.
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Compliance and
Environmental Stewardship
Protect human health and the environment through ensuring compliance with
environmental requirements by enforcing environmental statutes, preventing
pollution, and promoting environmental stewardship. Encourage innovation
and provide incentives for government, business, and the public that promote
environmental stewardship and long term sustainable outcomes.
Key Achievements
• Enhancing Criminal Enforcement.
In FY 2010, the Agency charged
the highest number of defen-
dants with environmental crimes
since FY 2005. The criminal
enforcement program also
completed its three-year hiring
strategy to increase the number
of special agents assigned to
investigating environmental
crimes to no less than 200, a
minimum that the Agency will
maintain in future years. For ad-
ditional information, see www.
epa.gov/compliance/criminal/.
• Reducing, Treating, and
Eliminating Pollutants. As part
of FY 2010 enforcement actions,
EPA secured commitments for
pollution controls that will
reduce, treat, or eliminate the il-
legal release of pollutants within
the first year after the controls
are installed. During FY 2010,
the Agency reduced, treated, or
eliminated an estimated 410
million pounds of air pollut-
ants, 1,000 million pounds of
water pollutants, 8.3 million
pounds of toxic pollutants and
pesticides, and 11,800 million
pounds of hazardous waste.
• Pollution Prevention Technical
Assistance. The Agency provides
technical assistance to business-
es and other entities through P2
grants to states, tribes, and other
organizations. According to
EPA's latest available data in FY
2009, regional pollution preven-
tion programs awarded 49 state
and tribal assistance grants and
25 source reduction assistance
grants, resulting in 23.64 million
pounds of hazardous material
reduced, 4,077.79 million gallons
of water conserved, 0.43 million
metric tons of carbon dioxide
equivalent conservation, and
$110.74 million saved. For ad-
ditional information, see www.
epa.gov/oppt/p2home/pubs/
grants/ppis/FY2009P2Grant.
pdf and www.epa.gov/oppt/
p2home/pubs/grants/srap/
SRAPResultsFY2009.pdf
Design for the Environment
Program. EPA's Design for the
Environment (DfE) Program
partners with businesses,
environmental organizations,
and other stakeholders to design
or redesign products, processes,
and environmental management
systems to be cleaner, more cost-
effective, and safer for workers
and the public. The Safer Product
Labeling Program allows safer
products to carry the DfE label,
which helps consumers quickly
identify and choose products
that are less harmful and can
help protect the environment. In
FY 2010, the DfE Safer Product
Labeling Program authorized
its logo for use on more than
500 additional products from
about 100 manufacturers, raising
the total number of products
bearing the label to more than
2,000. The DfE Safer Product
Labeling Program uses third
parties to review applications for
the logo. These third parties work
with product manufacturers to
reformulate products so that they
meet DfE criteria, with the goal
of submitting only the products
that qualify for the logo. Even
after this step, many companies
must reformulate to meet DfE's
criteria. All products that carry
the DfE label must meet the
program's rigorous Standard
for Safer Products and stringent
safer ingredient criteria (see www.
epa.gov/dfe/pubs/projects/gfcp/
index.htm).
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GOAL 5 AT A GLANCE: COMPLIANCE AND ENVIRONMENTAL STEWARDSHIP
FY 2010 Performance Measures
14 Not Met = 2 Data Available After 2/7/11 = 5 (Total Measures = 21)
How Funds Were Used: Net Program Costs
(Dollars in Thousands)
Goal 5 Performance Measures
Healthy
Communities
and Ecosystems
$1,952,626.3
16.4%
Compliance and
Environmental
Stewardship
$814,298.8
6.9%
lean Air and Global
Climate Change
/% 1,205,805.4
10.1%
Land
Preservation
and Restoration
$3,610,554.3
30.4%
Clean and
Safe Water
$4,303,455.8
36.2%
Source: FY 2010 Statement of Net Cost by Goal
Objective I Objective 2 Objective 3 Objective 4
Goal 5 FY 2010 Performance and Resources
Strategic Objective
FY2010
Obligations
(in thousands)
%of
GoalS
Funds
Objective 1—Improve Compliance: By 2011, maximize compliance to protect human
health and the environment through enforcement and other compliance assurance
activities by achieving a 5% increase in the pounds of pollution reduced, treated, or
eliminated by regulated entities, including those in Indian country.
$552,492.4
68%
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.
$112,087.6
15%
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.
$112,087.6
10%
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.
$64,015.2
7%
Goal 5 Total
$814,298.8
100%
Due to rounding, some numbers might add up to slightly less or more than WO°/<
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• Assessing Environmental
Impacts of Biofuels. Under
the Energy Independence and
Security Act, EPA reports to
Congress every three years on
the potential environmental
impacts of biofuel production
and makes recommendations
for protecting the environ-
ment. With FY 2010 funding
of $5 million, EPA launched a
new biofuels research program.
Research planning was based
on critical EPA program and
regional office needs and on ad-
vancing life cycle analysis and
multidisciplinary research. EPA
also prepared its first mandated
Biofuels Report to Congress.
For additional information, see
www.epa.gov/sustainability/
energy.htm.
• Green Suppliers Network.
The Green Suppliers Network
leverages Department of
Commerce manufacturing
extension partnership centers
and state pollution prevention
experts to assist manufacturers
in improving their productiv-
ity, efficiency, and environmen-
tal performance. In FY 2010,
the Green Suppliers Network
completed 46 partner reviews,
with 62 reviews currently in
process and 19 partner leads
identified. The FY 2010 reviews
identified potential reductions
of 0.44 million pounds of
hazardous materials and 0.216
million metric tons of carbon
dioxide equivalent, conserva-
tion of 20.56 million gallons
of water, and savings of $4.31
million. For additional infor-
mation, see www.epa.gov/
greensuppliers.
• Tribal Consultation Policy
Released. EPA worked closely
and consistently with its tribal
and federal partners to imple-
ment the President's directive
on Tribal Consultation. The
Tribal Consultation Policy
aims to better facilitate broad
consultation and coordination
with tribes, thus strengthening
the EPA-tribal partnership.
The Agency has developed an
action plan, sought out and
Key Enforcement Goals
Three key enforcement goals to guide EPA's work and make a
real difference in protecting human health and the environ-
ment in communities across the nation:
1. Aggressively go after pollution problems that make a
difference in communities by using vigorous civil and
criminal enforcement that targets the most serious water,
air, and chemical hazards and advances environmental
justice by protecting vulnerable communities. Under this
goal, EPA developed six National Enforcement Initiatives
to address some of the more complex pollution problems:
• Keeping raw sewage and contaminated stormwater
runoff out of waters.
• Cutting animal waste to protect surface and ground
water.
• Reducing widespread air pollution from the largest
sources, especially the coal-fired utility, cement, glass,
and acid sectors.
• Cutting toxic air pollution that affects communities'
health.
• Assuring energy extraction sector compliance with
environmental laws.
• Reducing pollution from mineral processing operations.
2. Reset our relationship with states to make sure we are
delivering on our joint commitment to a clean and healthy
environment. Under this goal, EPA issued interim guid-
ance on short-term actions to strengthen state perfor-
mance and oversight through the Agency's Performance
Partnership Agreements/Performance Partnership Grants
guidance.
3. Improve transparency. EPA will work to make meaningful
facility compliance information available and accessible
using 21st century technologies. This will hold the govern-
ment accountable through public information on state and
federal performance. For additional information, see www.
epa.gov/oecaerth/data/planning/initiatives/goals.html.
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addressed comments, and will
finalize its Tribal Consultation
Policy by March 2011. For ad-
ditional information, see www.
whitehouse.gov/the-press-
office/memorandum-tribal-
consultation-signed-president.
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FY 2010 Financial Performance
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EPA continues to adhere to
the highest standards for
financial management to
carry out its mission to protect
human health and the environ-
ment. For the llth consecutive year,
EPA's Office of Inspector General
issued an unqualified or "clean"
opinion on the Agency's financial
statements. This means that EPA's
financial statements are presented
fairly in all material respects and
that they conform to generally
accepted accounting principles for
the federal government. In simple
terms, a clean opinion means that
the Agency's numbers are reliable.
For details see "Section II, Financial
Statements," in the Fiscal Year 2010
Agency Financial Report (www.epa.
gov/ocfo/perf_report/FY_2010_
EPA_AFR.pdf).
EPA's FY 2010 accomplishments in
financial management include:
• Deepwater Horizon Oil Spill
Stewardship Plan. EPA devel-
oped a risk assessment and
mitigation plan to support
current and future claims for
reimbursement from respon-
sible parties and maintain
accountability to taxpayers for
federal funds. EPA tracked and
accounted for all resources for
Agency work supporting the oil
spill response during FY 2010.
Open Government Plan, in re-
sponse to the President's Open
Government Directive, EPA es-
tablished an Open Government
Plan to promote the three core
values of Open Government:
transparency, participation, and
collaboration with the public.
In conjunction with the Open
Government Plan, EPA estab-
lished its Open Government
Data Quality Plan to ensure the
integrity of spending data pub-
lished on www.USASpending.
gov. For additional information,
see www.whitehouse.gov/open.
Recovery Act. EPA is compliant
with Office of Management and
Budget guidance and Recovery
Act requirements in its financial
reporting, submitting accurate
and timely financial reports. EPA
also ensured its financial report-
ing was transparent to the public
by posting Percent Change data
to EPA's Recovery Act website
and submitting data to the
Recovery and Accountability
Transparency Board for posting
to the governmentwide website.
For additional information, see
www.recovery.gov.
26
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Total Assets
Total
Liabilities
Assets—What EPA
Owns and Manages
EPA's assets totaled $23 bil-
lion at the end of FY 2010.
More than 93 percent of
these assets fall into two
categories: 1) its fund bal-
ance with the Department
of the Treasury, the equiva-
lent of the Agency's "check-
book" balance available to
pay expenses, and 2) invest- Net posjtjon
ments that will be used to
pay for future Superfund Net Cost of
or leaking underground Operations
storage tank cleanups. All
of EPA's investments are
backed by U.S. government
securities.
Liabilities—What EPA Owes
EPA's liabilities were $2 billion at
the end of FY 2010, an increase
of $172 million from the FY 2009
level. EPA's largest liability, its
combined accounts payable and
accrued liabilities, includes $1.08
billion and represents 46 percent
of what the Agency owes.
Net Cost of Operations—How
EPA Used Its Funds
The net cost of operations is
the difference between the costs
incurred by EPA programs and
EPA's receipts. The chart to the
right shows how EPA divided its
funds among its five program
goal areas in FY 2010.
EPA's FY 2010 Total Assets and Liabilities
Thousands)
$ 23,456,385
$ 2,343,763
$21,112,622
$ 11,712,781
Thousands)
$ 24,376,273
$2,170,782
$22,205,491
$8,147,351
Thousands)
$ (919,888)
$ 172,981
$(1,092,869)
$3,565,430
Change
(4)%
8%
(5)%
44%
FY20IO Net Cost by Goal
Goal 4, Healthy
Communities and Ecosystems
$1,451,325(12%)
Goal 3, Land
Preservation
$1,888,689(16%)
Goal 5, Compliance
$793,336(7%)
Goal I, Clean Air
$1,193,972(10%)
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Source: FY 2010 Statement of Net Cost by Goal
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EPA Holds Itself Accountable
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EPA strives to manage tax-
payer dollars efficiently and
effectively and ensure the in-
tegrity of its programs and process-
es 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 finan-
cial systems and report the results
to the President and Congress.
As part of this effort, agencies are
required to report on the effec-
tiveness of internal controls over
financial reporting.
Based on the results of EPA's FY
2010 evaluation, the Administrator
provided reasonable assurance on
the adequacy and effectiveness of
EPA's internal controls over pro-
grams and financial systems.
To evaluate its internal controls
over financial reporting, the Agency
reviewed 10 key financial processes
and 296 key controls. Based on this
evaluation, no new material weak-
nesses and one new significant defi-
ciency were identified, and internal
EPA's FY 2010 Key Management Challenges Identified
by the Office of Inspector General
1. The Need for a National Environmental Policy
2. Water and Wastewater Infrastructure
3. Oversight of Delegation of States
4. Safe Reuse of Contaminated Sites
5. Limited Capability to Respond to Cyber Security
6. Reducing Domestic Greenhouse Gas Emissions
7. EPA's Framework for Assessing and Managing Chemical Risks
controls were found to be operating
effectively and efficiently.
EPA continues to emphasize the
importance of maintaining effec-
tive internal controls. In FY 2010,
the Agency continued to conduct
internal program compliance
reviews of program and regional
offices to help inform and strength-
en its FMFIA implementation.
Additionally, EPA began developing
trainings, tools, and materials to
help Agency managers and staff in
fulfilling their roles and responsi-
bilities for maintaining an effective
internal controls program.
For details see "Section III, Other
Accompanying Information," in the
Fiscal Year 2010 Agency Financial
Report (www.epa.gov/ocfo/perf_
report/FY_2010_EPA_AFR.pdf).
28
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Fiscal Year 2010 Annual Assurance Statement
The U.S. Environmental Protection Agency (EPA) conducted its FY 2010 assessment
of the effectiveness of internal controls over programmatic operations and financial
activities, as well as conformance of financial systems to government-wide standards.
The assessment was conducted in compliance with the Federal Managers' Financial
Integrity Act (FMFIA), OMB Circular A-123, Management's Responsibility for Internal
Control, and other applicable laws and regulations.
Based on the results of EPA's assessment and no findings of material weaknesses, I
am providing reasonable assurance that the Agency's internal controls over program-
matic operations were operating effectively and financial systems conform to govern-
ment-wide standards as of September 30, 2010.
In addition, based on the results of EPA's assessment of the effectiveness of internal
controls over financial activities and no findings of material weaknesses as of June 30,
2010, I am providing reasonable assurance that EPA's internal controls over financial
activities were operating effectively.
Lisa P. Jackson
Administrator
November 10, 2010
To submit comments or questions on the FY2010 Financial and Progran
Performance Highlights, please e-mail: ocfoinfo@epa.gov.
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Office of Planning, Analysis, and
Accountability (2724A)
United States Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, DC 20460
www.epa.gov/ocfo
EPA-190-R-11-001
February 2011
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