Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification

Table of Contents
Introduction and Overview
       EPA's Mission and Goals	 i-1
       Annual Plan and Budget Overview	i-3
       Organization of the Annual Performance Plan and Budget	i-13

Resource Tables
       Resources by Appropriation	  RT-1
       Resources by Goal/Appropriation	RT-3
       Resources by Goal/Objective	RT-8

Goal 1: Clean Air and Global Climate Change	1-1
       Healthier Outdoor Air	1-14
       Healthier Indoor Air	1-65
       Protect the Ozone Layer	1-92
       Radiation	1-100
       Reduce Greenhouse Gas Intensity	1-111
       Enhance Science and Research	1-133
       Subject Index	1-147

Goal 2: Clean and Safe Water	H-l
       Protect Human Health	H-12
       Protect Water Quality	H-50
       Enhance Science and Research	11-86
       Subject Index	11-98

Goal 3: Land Preservation and Restoration	ffl-l
       Preserve Land	IH-14
       Restore Land	111-39
       Enhance Science and Research	111-87
       Subject Index	111-97

Goal 4: Healthy Communities and Ecosystems	IV-1
       Chemical, Organism, and Pesticide Risks	IV-22
       Communities	IV-80
       Ecosystems	FV-103
       Enhance Science and Research	IV-134
        Subject Index	IV-176

Goal 5: Compliance and Environmental Stewardship	V-l
       Improve Compliance	V-17
       Improve Environmental Performance through Pollution Prevention and Innovation	V-40
       Build Tribal Capacity	V-69
       Enhance Science and Research	V-78
        Subject Index	V-89

Enabling/Support Programs
        Office of Air and Radiation	ESP-1
        Office of Solid Waste and Emergency Response	ESP-3
        Office of Enforcement and Compliance Assurance	ESP-5
        Office of Administration and Resources Management	ESP-8
        Office of Environmental Information	ESP-15

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification
Table of Contents
       Office of the Chief Financial Officer	ESP-29
       Office of International Activities	ESP-34
       Office of the Administrator	ESP-36
       Office of the General Counsel	ESP-45
       Inspector General	ESP-49
       Subject Index	ESP-56

Annual Performance Goals and Measures
       Clean Air and Global Climate Change	1
       Clean and Safe Water	;	22
       Land Preservation and Restoration	33
       Healthy Communities and Ecosystems	43
       Compliance and Environmental Stewardship	68

Special Analysis
       Annual Performance Plan Components	SA-1
       Major Management Challenges	SA-3
       EPA User Fee Program	SA-15
       Working Capital Fund	SA-17
       STAG—Appropriation Account	SA-18
       STAG—Categorical Grants Program	SA-19
       STAG—Statutory Authority and Eligible Uses	SA-25
       STAG—Infrastructure Financing	SA-37
       Program Projects	SA-41
       Program Assessment Rating Tool (PART)	SA-50
       Subject Index	SA-64

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Introduction/Overview

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification

Table of Contents	
Introduction and Overview
      EPA's Mission and Goals	i-1
      Annual Plan and Budget Overview	i-3
      Organization of the Annual Performance Plan and Budget	i-13

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                                     EPA's Mission

       The mission of the Environmental Protection Agency (EPA) is to protect and safeguard
human health and the environment, with a new focus on collaboration and partnerships with our
Geographic and Regional partners.  This budget supports the Administration's commitment to
environmental results — making the air cleaner, water purer, and better protecting our land.  The
Agency's proposal  for FY 2005 also reflects our primary goal of compliance with national
standards, which support neighborhood solutions. It will enable the Agency to take a giant step
toward national market-based solutions, boosting our nation to the next level of environmental
protection.

                                     EPA's  Goals

       EPA has five strategic,  long-term goals hi its  Strategic Plan that guide the Agency's
planning, budgeting, analysis, accountability, and implementation processes.

•   Clean Air and Global Climate Change:  EPA will protect and improve the  air so  it is
    healthy to  breathe and risks to human health and the environment are reduced.  EPA will
    reduce greenhouse gas intensity by enhancing partnerships with businesses and other sectors.

    EPA and its partners  will  protect human  health  and the environment  by attaining and
    maintaining health-based air-quality standards and reducing the risk from toxic air pollutants,
    and will encourage voluntary actions  to improve indoor air in homes, schools, and office
    buildings.  Through worldwide action, ozone concentrations in the stratosphere will improve,
    reducing the risk to human health from overexposure to ultraviolet radiation. EPA and its
    partners will also work to minimize unnecessary releases of radiation and be prepared to
    minimize impacts should unwanted releases occur.  In addition, EPA will provide and apply
    sound science and conduct leading-edge research in  support of air programs.

•   Clean and Safe Water:  EPA will ensure drinking water is safe.  EPA will also  restore and
    maintain oceans, watersheds, and their aquatic ecosystems to protect human health, support
    economic and recreational activities, and provide healthy habitat for fish, plants, and wildlife.

    EPA will protect human health by reducing  exposure to contaminants in drinking water, in
    fish and shellfish,  and hi recreational waters.  EPA  will also protect the quality of rivers,
    lakes, and streams on a watershed basis, and protect coastal and ocean waters. EPA's water
    program will be supported by providing and applying a sound scientific foundation through
    the  conduct of leading-edge research  and development of a  better understanding  and
    characterization of the environmental outcomes.

•   Land Preservation and Restoration:  EPA will  preserve  and  restore the land  by using
    innovative waste management practices and cleaning up  contaminated properties to  reduce
    risks posed by releases of harmful substances.

    EPA will reduce waste generation, increase recycling, and  ensure proper management  of
    waste and petroleum products at facilities in ways that prevent releases.  EPA will also work
    to control  the  risks to human  health and  the environment by mitigating  the impact  of

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   accidental or intentional releases and by cleaning up and restoring contaminated sites. EPA's
   land preservation and restoration efforts  will be  supported by  the  application of sound
   science and the conduct of leading-edge research.

•  Healthy Communities and Ecosystems:  EPA will protect, sustain, or restore the health of
   people, communities, and ecosystems using integrated and comprehensive approaches and
   partnerships.

   EPA  will  prevent  and reduce potential  pesticide, chemical, and genetically-engineered
   biological  organism risks to  humans,  communities, and ecosystems.  EPA will  work to
   protect, sustain,  and restore the health of communities, natural  habitats, and ecosystems,
   including  brownfield  sites,  the  United  States-Mexico border, wetlands,  and  specific
   ecosystems such as the Great Lakes, Chesapeake Bay, and Gulf of Mexico. The Agency will
   work to enhance the Nation's capability to prevent, detect, and recover from acts  of terror
   through research, enhanced data collection and sharing, and provision of technical support to
   infrastructure. In addition, EPA will provide a sound scientific  foundation for  protecting,
   sustaining, and restoring the health of people, communities, and ecosystems through leading-
   edge research.

•  Compliance  and  Environmental  Stewardship:   EPA  will improve  environmental
   performance through compliance with environmental requirements, preventing pollution, and
   promoting environmental stewardship.  EPA will protect human health and the environment
   by encouraging  innovation and providing incentives for governments, businesses, and the
   public that promote environmental stewardship.  Additional funds and resources provided in
   2004 and continued into 2005 will allow resumption of targeted inspections and enforcement
   activities in both the civil and criminal context.

   EPA will maximize compliance through compliance assistance, compliance  incentives, and
   enforcement.  EPA  will also work to improve environmental protection and enhance natural
   resource conservation on the part of government, business,  and  the public through the
   adoption of pollution prevention and sustainable practices, the reduction of regulatory
   barriers,  and the application of results-based, innovative,  and multimedia approaches.  In
   addition, EPA will assist Federally  recognized tribes hi  assessing the  condition of their
   environment, help build their capacity to implement environmental programs, and carry out
   programs in Indian country where needed to address environmental issues.  EPA will also
   strengthen the scientific evidence  and research  supporting  environmental  policies and
   decisions on compliance, pollution prevention, and environmental stewardship.
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                           Annual Plan and Budget Overview

       The EPA's FY 2005 Annual Plan and  Budget requests  $7.8 billion in discretionary
budget authority and 17,904 Full Tune Equivalents (FTE).  This budget request supports the
Agency's  core programs and implementation  of critical  components  of the  President's
Management  Agenda.   Additionally, this  request  emphasizes  the importance  of adequate
resources  and vision  necessary to  reach our Nation's environmental goals.  Resources also
support the Agency's efforts to work with its partners toward protecting air, water, and land, as
well as providing for  EPA's role hi safeguarding the Nation from terrorist acts.  The request
supports the Administration's commitment to setting high  environmental protection standards,
while focusing on results and performance, and achieving  goals outlined in the President's
Management Agenda.

       This Annual Plan and Budget submission demonstrates EPA's commitment to protecting
human health and the environment,  building and enhancing relationships with our Geographic
and Regional partners, and improving environment results. EPA's budget request places a strong
emphasis on working with stakeholders to  protect human health.  For example, the Agency
requests $65 million for grants to retrofit the Nation's school buses with cleaner technologies,
thereby reducing diesel emissions.  The budget  will also assist our state and local partners in
meeting national environmental quality standards.  EPA requests $20 million and $45 million
respectively to support the Agency's request for Water Quality Monitoring and the Great Lakes
Legacy Act. These efforts exhibit EPA's commitment to collaborative environmental protection.

Clean Air and Global Climate Change

       The FY 2005 President's Budget expands EPA's Clean School Bus USA program to $65
million in grant funding for projects  that reduce diesel emissions from school buses through bus
retrofit or replacement. Clean School Bus USA helps ensure that school buses - which are the
safest way for kids to get to school - also are the cleanest possible transportation for this
generation of  school children.  EPA initially launched the  program in April 2003 using $5
million hi grant funding.  The initial grant offering garnered  120 grant applications from every
region of the country totaling nearly $60 million hi requests  and  offering some $36 million hi
matching resources. EPA supported  17 of these projects with the given resources.  By expanding
this program,  additional  resources are available to communities for localized  solutions that
address an issue important to children and parents across the nation.

       The Clear Skies initiative draws on EPA's experience to modernize the Clean Ah- Act.
Using a market-based approach, the  Clear Skies initiative will dramatically reduce power  plant
emissions of three of the most significant air pollutants—sulfur dioxide (802), nitrogen oxides
(NOX), and mercury.  Reductions in SC»2 and NOX emissions will  also reduce airborne fine
particulate matter (PM2.s), which is associated with these two pollutants. EPA's approach builds
upon  the  success  of the acid rain cap-and-trade  program created by the  Clean Air Act
amendments in 1990.  The Clear Skies initiative will achieve substantially greater reductions in
air pollution from power plants more quickly and with more certainty than the existing Clean Air
Act. The initiative requires mandatory reductions of SOa, NOX, and mercury (Hg) by an average
of 70% from today's levels and ensures that these levels are  achieved and sustained through caps
on emissions.  EPA has also proposed an Interstate Air Quality Rule that also utilizes a cap and

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          The  number of people living in areas with
          monitored ambient ozone concentrations below
          the NAAQS for the one-hour ozone standard will
          increase by 4% for a cumulative total of 53%.
trade program to reduce SOa and NOX as well as a
proposed  Utility Mercury  Reductions Rule that
seeks comments on two approaches for reducing
the estimated 48 tons of mercury currently emitted
each year by  coal-burning power plants  in  the
United States.  Despite these reductions, some states will need to implement further measures to
meet National Ambient Air Quality Standards (NAAQS).  To help states and localities develop
cost-effective  strategies, EPA also will  need to provide assistance  to states to implement
reductions.  One approach  is to strengthen air  models by  developing emission factors and
improving emission inventories.

       A  key to achieving the Clean Air Goal is  $313.0 million included in this budget for air
grants that support states and tribes. This total includes resources to assist states, tribes and local
governments in devising  additional stationary and mobile source strategies to reduce ozone,
particulate matter, and other pollutants.
Air toxics emissions nationwide from stationary and
mobile sources combined will be reduced by an additional
1% of the updated 1993 baseline of 6.0 million tons for a
cumulative reduction of 38%.
       The  Agency  will   develop
strategies and rules to help states and
tribes reduce emissions and exposure to
hazardous air pollutants, particularly in
urban   areas,   and   reduce  harmful
deposition in water bodies.

       EPA's air research program will continue to provide a strong scientific basis for policy
and regulatory decisions and explore emerging problem areas.

Climate Change

       This  budget   request  includes  $130.1
million to meet the Agency's climate  change
objectives  by working with business and other
sectors to  deliver multiple  benefits  — from
cleaner  air  to  lower  energy  bills  —  while
improving overall scientific  understanding of
climate change and its potential consequences.  The core of EPA's climate change efforts are
government/industry   partnership  programs  designed  to  capitalize  on   the  tremendous
opportunities available to consumers, businesses, and organizations to make sound investments
hi efficient equipment and practices. These  programs help remove barriers in the marketplace,
resulting m faster deployment of technology into the residential, commercial, transportation, and
industrial sectors of the economy.

Clean and Safe Water

       Over the 30 years  since enactment of the Clean Water and Safe Drinking Water Acts,
government, citizens, and the private sector have worked together to make  dramatic progress hi
improving the quality of surface waters and drinking water.
         Greenhouse gas emissions will be reduced from
         projected levels by approximately 90  MMTCE
         per  year  through  EPA  partnerships  with
         businesses, schools, state and local governments,
         and other organizations.
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       Thirty years ago, much of the nation's tap water had either very limited treatment or no
treatment at all.  About two-thirds of the surface waters assessed by states were not attaining
basic water quality goals and were considered polluted. Some of the Nation's waters were open
sewers posing health risks, and many waterbodies were so polluted that traditional uses, such as
swirnming, fishing, and recreation were impossible.
                                        By 2005 the percentage of the population served by
                                        community water systems will receive drinking water that
                                        meets health-based standards with which systems need to
                                        comply as of December 2001 will be 94%.
                                        By 2005, using both pollution prevention and restoration
                                        approaches, so that 500 of the Nation's watersheds, water
                                        quality standards are met in at least 80% of the assessed
                                        water segments.
       Today drinking water systems
monitor  and treat  water  to  assure
compliance    with   drinking   water
standards applicable to a wider range of
contaminants.   In addition,  drinking
water sources are now protected, which
reduces treatment costs in the long run.
The number of polluted waters has been
dramatically  reduced and many clean
waters are even healthier.  A massive investment of Federal, state, and local funds resulted in a
new generation  of wastewater treatment facilities  able  to provide  "secondary" treatment  or
better. Discharges from over 50 different categories of industries are now regulated and efforts
to implement 'best management practices' have helped reduce runoff of pollutants from diffuse
or 'nonpoint' sources.

       In FY 2005, EPA will focus on four strategies toward achieving the Nation's clean and
safe water goals. To better address the complexity of the remaining water quality challenges,
EPA  will promote local watershed  approaches to execute the best and  most cost effective
solutions to local and regional water problems.  To protect and build on the gains of the past,
EPA will focus on its core water programs. To maximize the impact of each dollar, EPA will
continue to  strengthen vital partnerships with states, tribes and local governments, and others
working toward the common goal of improving the Nation's waters.   To leverage progress
through innovation, EPA will promote water quality trading, water efficiency, and other market
based approaches.

       In FY 2005, to further support states and tribes in implementing CWA programs, EPA is
making a significant  investment in water  quality monitoring to strengthen and upgrade state
programs through state grants, improved data management  systems and improved monitoring
tools.

       EPA's water research program will continue to provide a strong scientific basis for policy
and regulatory decisions and explore emerging problem areas.

Water Quality Monitoring

       The FY 2005 water quality monitoring investment will be a major step toward solving the
well-documented shortcomings of the Nation's water quality monitoring.  EPA can make the
most of scarce resources through information-based management, using tools-such as prevention,
source water protection, watershed trading, and permitting on watershed basis.  Monitoring is the
foundation of information-based management and it is imperative that the data and information
gaps be closed as quickly as possible.   To strengthen and upgrade water quality monitoring

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programs across the country, EPA proposes two components:  State grants targeted specifically
to enhance  state  monitoring programs as well as support and  enhancement  of state data
management systems.

Concentrated Animal Feeding Operations (CAFOs) and Storm Water

       States are struggling with implementation of the NPDES permitting programs, as shown
by withdrawal petitions and permit backlogs.   Compounding the problem is that the regulated
universe has increased by tenfold due to new requirements for concentrated animal feeding
operations and storm water runoff. Additional resources in the form of state grants will assist
states in implementing the NPDES CAPO programs and issuing storm water permits.

Water Quality Trading

       In  FY  2005 EPA will advance water quality trading in voluntary partnerships  on a
watershed basis.  It capitalizes  on economies  of scale and cost  differences among sources.
Trading allows one source to meet its regulatory obligations by using pollutant reductions gained
by another source and provides incentives for voluntary reductions at a reduced cost to all.  It
encourages earlier and/or greater reductions than required, more cost effective programs, and
incentives for innovative solutions to complex water quality problems.

Water Efficiency

       Growing populations place increasing demands on water sources. In addition, the nation
faces a multi-billion dollar gap between water  and wastewater infrastructure needs over the next
20 years.  The touchstone of a long-term strategy to manage and maintain water and wastewater
infrastructure is sustainability. An important component of that strategy is promoting sustainable
systems. EPA will work in partnership with the states, utility industry and others to enhance the
operating  efficiencies of  systems.  These efficiencies  will  help  systems make  necessary
investments to meet growing demand and sustain gains made over the past three decades.  EPA
will also help mitigate the infrastructure needs by investing hi efforts to reduce water demand
and wastewater flows, allowing for deferral or  downsizing of capital projects. Added benefits to
reduced  demand include:  maintaining  streamflows,  protecting  aquatic  habitat,  avoiding
overdrawn aquifers, and conserving supply sources.

Land Preservation and Restoration

       This budget  continues a commitment to clean up toxic waste sites with $1.4 billion for
Superfund.  The Agency will also work to maximize the participation of responsible parties in
site  cleanups while promoting fairness in the enforcement process.   EPA will continue the
progress we have made in cleaning up toxic waste sites while protecting public health and
returning land to productive use.  As of January 6, 2004, approximately 700 cleanup construction
projects were underway at over 430 Superfund National Priority List (NPL) sites construction
was complete on over 890 sites, or 59% of NPL sites. EPA has completed all final cleanup plans
at over 1,100 NPL  sites, undertaken 7,900 removals at hazardous waste sites to immediately
reduce human health and environmental threats, assessed  over 45,300 sites, and removed more
than  33,400 sites from  the national  toxic  waste  site  list to help  promote the  economic

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redevelopment  of these properties.  The waste research program continues to support the
Agency's objective  of reducing  or  controlling  potential risks  to human  health  and the
environment  at contaminated  waste sites by  accelerating  scientifically-defensible and cost-
effective decisions for cleanup at complex sites, mining sites, marine spills, and Brownfields in
accordance with CERCLA.

Healthy Communities and Ecosystems

Ensuring Safe Food

       The FY 2005  request  includes  $156.7
million to meet implementation challenges of the
Food Quality Protection Act (FQPA) of 1996 so
 ,    ,,  .    .       .,,              .         _  required to be reassessed over ten years.
that all Americans will continue to enjoy one of
By  the end of 2005,  EPA  will reassess a
cumulative 88% of the 9,721 pesticide tolerances
the safest and most  affordable food supplies in the world. The Agency's implementation of
FQPA focuses on science-driven  policies  for pesticides review, seeks to  encourage the
development of reduced risk pesticides to provide an alternative to the older versions on the
market, and works to develop and deliver information on alternative pesticides/techniques and
best pest control practices to pesticide users. The  Agency is also working to help farmers'
transition—without disrupting production—to safer substitutes and alternative farming practices.
Reassessing existing tolerances ensures food safety, especially for infants and children, and
ensures that all pesticides registered for use meet current health standards.  This budget request
also supports FQPA research. That research seeks to reduce uncertainties in risk assessment by
developing tools to reduce reliance on default assumptions and support the development of new
assessment methodologies.

Chemical Programs

       EPA's  strategy  to  prevent  and  reduce potential risks  posed   by  chemicals  and
microorganisms comprises three  primary approaches:  preventing  the introduction  into U.S.
commerce  of chemicals that pose  unreasonable risks; effectively screening the stock of
chemicals already in use for potential risk; and developing and implementing  action plans to
reduce use of and exposure to chemicals that have been demonstrated to harm humans and the
environment. EPA will continue  to work with states and Tribes,  other federal agencies, the
private sector, and international entities to implement this strategy and, hi particular, to make
protection of children and the aging  a fundamental goal of public health and environmental
protection in the  United States and  around the world.  Both the New Chemicals and Existing
Chemicals  programs have initiated  work to  develop long-term, ambitious targets not only in
response to the FY 2004 PART process  but also hi conjunction with the EPA Strategic  Plan
revision effort.  Both have made significant improvements since the FY 2004 review, with new
chemicals program receiving one of the highest ratings of EPA programs reviewed by the PART
for FY 2005. Both programs are continuing its efforts to improve performance measurement in
response to FY 2005 PART findings by developing  long-term and associated annual efficiency
measures.
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Great Lakes

       To advance the Agency's efforts regarding innovative and effective partnerships, EPA is
making a significant investment in the Great Lakes Legacy Act program to address cleanup of
contaminated sediments.  EPA and  its  Great Lakes community partners  will collaborate on
remedial action within  the  Areas of Concern identified as potential Legacy Act  sediment
remediation sites in 2005.

Chesapeake Bay

       The FY 2005 President's Budget includes $30 million for the Chesapeake Bay. Of that
total, $10 million in the Targeted Watershed program is directed toward Chesapeake Bay for a
regional pilot program that will help sewage treatment plants reduce nutrient discharges to the
Bay through nonpoint  source projects.   Partners in the  effort to protect the Bay include
Maryland,  Virginia  and  Pennsylvania;  the  District  of Columbia;  the Chesapeake  Bay
Commission, a tri-state  legislative body; EPA, which represents the Federal government; and
participating citizen advisory groups.

Brownfields

       Additionally,  the Agency is committed to building innovative and effective partnerships
that allow  states  and tribes to make environmental decisions on local levels.   This budget
provides $210  million for Brownfields.   As one of the  Administration's top  environmental
priorities and a key to restoring contaminated sites to productive use, the Brownfields program
will draw on  some  of these resources  to enhance  state and  Tribal response programs.   By
protecting land and revitalizing contaminated sites throughout the US, EPA  continues to expand
efforts to foster healthy and economically sustainable communities and attract new investments
to rejuvenate areas.

Homeland Security

       EPA's  FY 2005 Annual Plan and Budget requests $97 million and  151 FTE to support
the Agency's Homeland Security responsibilities in accordance with the Public Health Security
and Bioterrorism Preparedness and Response Act of 2002, the National Strategy for Homeland
Security, and Presidential Directives (PDD) 39, 62, 63.  In addition, EPA will conduct research
and provide guidance and technical support for Federal,  state, local governments, and other
institutions hi the areas of biological agents, water security, and rapid risk assessment.

Compliance and Environmental Stewardship

       Many  of the environmental
improvements in this country during
the past 30 years can be attributed to a
strong set of environmental laws and
EPA's efforts to ensure compliance
with  those laws  through  a  smart   violations-
A  strong  enforcement  program  identifies  and reduces
noncompliance problems, assists the regulated community in
understanding environmental laws and regulations, responds to
complaints from the public, strives to secure a level economic
playing field for  law-abiding companies, and deters  future
enforcement  program.    A   smart

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Increase the regulated community's compliance
with environmental requirements through then-
expanded use of compliance assistance.  The
Agency will continue to support small business
compliance assistance centers  and  develop
compliance assistance tools  such as  sector
notebooks and compliance guides.
enforcement  program uses  a mix  of integrated  strategies,  partnerships,  and  innovative
approaches to provide cleaner air, purer water, and better protected land. An integrated approach
considers the appropriate tools to use when addressing environmental problems, and uses data
analysis and  other relevant information to marshal and leverage resources to target significant
noncompliance and address the associated environmental risks.  The program uses a combination
of tools  such as compliance assistance and incentives,  monitoring,  and civil and  criminal
enforcement, in  cooperating with our regulatory partner, to provide a broad scope of actions
designed to protect public health and the environment.  State, Tribal, and local governments bear
much of the responsibility for ensuring compliance.  EPA works in partnership with them and
other Federal agencies to promote environmental protection.

       The  FY  2005 request will  continue  to
support  the  regulated  community's compliance
with   environmental   requirements   through
voluntary compliance incentives  and  assistance
programs.  The  Agency will provide information
and   technical   assistance   to   the  regulated
community  through  the  compliance  assistance
program  to  increase its  understanding  of all
statutory or regulatory environmental requirements, thereby reducing risk to human health and
the environment and gaining measurable improvements in compliance.  The program will also
continue  to develop  strategies and  compliance assistance tools that  will  support initiatives
targeted toward improving compliance at Federal facilities, in specific industrial and commercial
sectors, or with certain regulatory requirements.

       The President's FY 2005 request continues to support pollution prevention. Increasingly,
the nation is recognizing the value of pollution prevention as an environmental strategy, as  a
sustainable business practice, and as a funding principle of our society.  It is also a vehicle for
"reinventing" traditional EPA programs and devising innovative alternative strategies to protect
public health and the environment. Through EPA's leadership, pollution prevention has become
a key element of initiatives to improve  federal environmental management, empower state and
tribal programs, encourage corporate stewardship, and better inform the public.

Enhancing Environmental Performance

       To further EPA's goal of promoting environmental stewardship, the  Agency will make
investments in programs to support State innovation and pollution prevention in FY 2005.  A
new State and Tribal  Performance Fund provides $23 million  in competitive grants to develop
projects  with tangible, performance-based environmental and health  outcomes that can be
models for implementation across the nation.  EPA will also continue its emphasis on working
with Tribal governments to build the capacity of their environmental programs.

Strong Science

       The FY 2005  budget supports EPA's efforts to further strengthen the role of science in
decision-making by using sound  scientific information and analysis to help direct policy and
establish priorities. This budget request includes $572 million for the Office of Research and

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Development  to  develop and apply  strong  science  to address both  current  and  future
environmental challenges.   These resources support a balanced research and development
program designed to address Administration and Agency priorities, and meet the challenges of
the Clean Ah- Act (CAA),  the Safe Drinking Water Act (SDWA), the Federal  Insecticide,
Fungicide, and Rodenticide Act (FIFRA), the Food Quality Protection Act (FQPA), and other
environmental statutes. The budget request includes important new or increased research efforts
in the following areas: computational toxicology, data quality, and IRIS.

       In  accordance with  the  Administration's  Investment  Criteria  for  Research  and
Development (relevance, quality, and performance), the Agency will continue to improve the
application of the Criteria to achieve maximum environmental and health protections. Efforts
include applying the highest quality scientific methods, models, tools, and approaches.

Relevance

       EPA's Office  of Research and  Development (QRD)  has developed Multi-Year Plans
(MYPs) for each of its major research programs. These MYPs describe the scientific context and
present clear goals and priorities for each research program. Reflecting the inherently long-term
nature of research, each MYP has identified annual and long-term (five to eight years out) goals
that contribute to achievement of the Agency's strategic outcome goals and objectives.  Each
MYP is regularly updated to reflect scientific and budgetary changes, and is independently peer-
reviewed.

       The Agency  is also  exploring  options for establishing periodic  evaluations  of EPA
research programs. Beginning hi FY 2005,  regular evaluations by independent and  external
panels will provide prospective and retrospective reviews of program relevance, quality,  and
performance to date.  Specifically, evaluators will determine whether EPA research programs
have  complete plans  with clear goals  and priorities, articulate potential public benefits, are
relevant to National, scientific, and customer needs, and identify appropriate output and outcome
measures,  schedules,  and decision points. Evaluations will  also include an examination of
program design to determine the appropriateness of a program's short-, intermediate-, and long-
term goals and its strategy for attaining these. Recommendations and results from these reviews
will  improve the design and management of EPA research programs and help  to measure
progress under the Government Performance and Results Act (GPRA). EPA Program Offices
and Regions actively participate in setting goals and priorities for Agency research. This input is
used on an annual basis to inform and identify the performance impacts of budgetary decisions.

Quality

       The Agency will continue to rely upon peer review as a critical means of ensuring  that
Agency  science   activities   are  technically  adequate,   competently  performed,  properly
documented, and satisfy established quality requirements.  To ensure  quality, all scientific  and
technical work products undergo either internal or external peer review, with major or significant
products requiring external peer review.

       EPA's Science to  Achieve  Results (STAR) program is  a competitive,  peer-reviewed,
extramural  grants program whose goal is to enhance EPA's  research efforts by engaging the

                                          i-10

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nation's best scientists to provide high-quality, innovative research and solutions to protect
human health and the environment.  The STAR program uses external scientific peer reviewers
to rate applications based on scientific merit.

Performance

       In response to recommendations from the National Research Council, EPA's Science
Advisory Board, and  OMB, ORD is continually working to improve the performance of its
research programs.  Because of the inherent challenge  in measuring research results, EPA is
taking a multi-faceted approach in tracking and communicating the performance of its research
programs.

       Specifically, EPA has developed multi-year plans for each of its research programs using
a program design/evaluation logic model to help identify the outputs, customers, transfer needs,
and  short-,  intermediate-, and long-term  outcomes  of each research  program.  ORD has
incorporated these critical elements its long-term and annual performance goals to illustrate how
research contributes to the achievement of Agency outcomes. The Agency has included specific
long-term  goals  and annual performance  goals  which  represent  significant  research
accomplishments in the individual goal chapters of the budget request. EPA will also determine
success in achieving each program's research commitments not only by its timeliness in meeting
annual performance goals, but will also hold external independent reviews on a regular basis to
evaluate the relevance, quality, and performance of its research programs.

       EPA believes that taking a multi-year approach to its research planning, incorporating the
elements  of logic  model design  in  the  development of outcome-oriented  performance
information, and initiating external independent reviews of its research programs are important
improvements in support of achieving significant  research results and contributing  to the
achievement of Agency environmental and health outcomes.

The President's Management Agenda: A Commitment to Reform and Results

       The  Agency  is  committed to  achieving  the  Administration's  management reform
priorities for a government that is results-oriented, citizen-centered, and market-based.  This
Annual Plan and Budget represents a  strong commitment to reduce regulatory burdens and
streamline  Agency  operations, so that the Agency's  focus is on  positive  and measurable
environmental results while working more effectively with our partners and stakeholders. Since
FY  1999, EPA has undertaken significant management reform by restructuring  its budget  to
match the strategic goals and  objectives of its  strategic plan.  Since then, EPA has worked
consistently to improve its ability to manage for results.  The  Agency's current management
reform agenda fully supports the goals of the President's Management Agenda, and EPA has
made demonstrable progress in carrying out the five government-wide initiatives as reflected in
Executive Branch Scorecard updates and  in delivering environmental  results to our ultimate
customer~the American public.

       Implementation of the President's Management Agenda is a major focus of the Agency's
FY 2005 budget request.  EPA has identified major efforts to  accelerate its progress in "getting
to green" in all five  initiatives:  Budget  and Performance  Integration, Improved Financial

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Performance, Expanding E-Government, Competitive Sourcing, and Strategic Management of
Human Capital. The Agency's plans are described throughout this justification.  The Office of
Management and Budget (OMB) rated EPA's progress as "green" in all five of the five areas and
its status as "green" in Improved Financial Performance.

      EPA continues to place a great emphasis on improving performance measures.  The
results of the Administration's Performance  Assessment Rating Tool (PART) were  used to
inform the Agency's FY 2005 budget request. For example, EPA  is investing in water quality
monitoring to ensure adequate information is available  to  link programmatic  outputs to
environmental outcomes, and the Agency is better targeting pollution prevention  (P2) efforts by
enhancing P2 programs that have shown outcome results. In addition to and complementing the
Agency's outcome-based environmental performance measures, some programs have developed
or are in the process of developing efficiency measures.  These measures are structured as a ratio
of key program inputs (e.g.  time, dollars,  FTE) to program outputs or outcomes.  They are
intended to provide EPA program managers with additional information to be used as a tool for
sound decision-making in program management.

      The Agency has also incorporated Measurement Development Plans (MDPs) into this
year's Annual Plan and Budget. MDPs, which recognize that environmental performance does
not necessarily improve in one year, describe  efforts to fill identified measurement gaps so that
progress toward developing fully functioning measures, whether long-term or short-term, can be
tracked.   MDPs  provide  a  road  map for developing unproved long-term and short-term
performance measures for inclusion in the next strategic plan,  tracking current strategic targets
that cannot  be  measured  annually, and  assessing  progress  in  addressing performance
measurement gaps.
                                         i-12

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                Organization of the Annual Performance Plan and Budget

The Agency's Commitment to Results-based Management

       The  Agency's   approach  to  results-based  management  under  the  Government
Performance and Results Act  (GPRA) is based on a full integration of long-term strategic
planning, annual planning, budgeting, and accountability.  The organization of EPA's FY 2005
Annual Plan and Budget Request reflects the Agency's continuing commitment to link planning
and budgeting in an integrated process.  This integrated Annual Plan and Budget promotes fiscal
accountability through a connection between resources and outcomes.

       The Annual Plan and Budget presents the Agency's Goals and Objectives, and identifies
the resource levels and activities associated with them. For each Objective, the Budget sets forth
a set of annual performance  goals and measures to gauge progress towards the goals.  These
goals and measures represent intermediate, measurable levels of performance needed to achieve
the Agency's Objectives contained in the Agency's five-year Strategic Plan.  The Agency will
continue to work with partners and stakeholders to take into account our performance over the
past years, and lay out new  and innovative tools  and approaches to advance our progress in
environmental protection.

Implementing the New Strategic Architecture

       The Agency has taken the opportunity to couple the development of our new Strategic
Plan with a revision to the planning, budgeting, accounting, and performance structure. EPA has
developed a five goal structure  hi the revised Strategic  Plan.   The change in the Agency's
strategic architecture from ten  goals to five goals opened the way for a fresh look at how we
plan,  budget,  and execute  our resources,  and  the relationship of our resources  to  our
performance.

       We have built upon the Agency's success since 1999 hi presenting our resource request
hi a combined Annual Plan and Budget. We are introducing the concepts of "program/project"
and "activity"  into our budget formulation and budget execution processes.  These elements
allow the Agency to  budget,  account, and manage  its resources at a refined level, and improve
the integration of budget and  performance linkages.  The program/project describes "what" EPA
does and arrays our resources in a structure that communicates effectively with our partners and
stakeholders. Our activity structure shows "how" EPA does its work and is hi compliance with
the government-wide Business Reference Model, allowing for cross-Federal agency comparisons
as needed.

Annual Plan Components

       EPA's Annual Performance Plan, as for the past 6 years, is integrated into the  annual
Budget request.  To fully explain the Agency's resource needs, the  Budget contains  annual
performance goals and performance measures that the Agency uses to achieve its results. EPA
submits a stand-alone Annual  Plan to  Congress to meet the concern expressed hi GPRA that
"annual plans not be voluminous presentations describing performance for every activity. The
                                         i-13

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Annual Plan and reports are to inform, not overwhelm the reader." (See the Special Analysis
section of this document for the Annual Performance Plan components.)

       Due to timing and ongoing work on the Agency's Operating Plan, resources from the FY
2004 Consolidated Appropriations Bill are not included in this document.

Annual Performance Plan and Budget;

Resource Tables

       The resource tables provide a summary of the resources that the Agency is requesting for
FY 2005  by Goal, Objective, and Appropriation.

Goal Chapters include:

•  Strategic Goal Statement: Provides the long-term objective of the Goal.

•  Resource Summary:  Provides a summary of the resources by each Goal, Objective, and
   Appropriation. (The dollar amounts in these and other tables may not add due to independent
   rounding.)

•  Background and Context: Set the broad context for the Goal and briefly explains why it is
   of National importance.

•  Means and Strategy:  Broadly describes the Agency's approach to achieving the Strategic
   Goal.

•  Highlights: Provide an overview of major activities and programs in FY 2005 that contribute
   to achieving the Goal.

•  Strategic Objectives and Annual Performance Goals:  Includes all the Objectives under
   each Goal and link those Objectives to all FY 2005 Annual Performance Goals.

•  External Factors: Address external-Agency factors, such as participation hi environmental
   programs by  state and  local  governments  and other stakeholders,  or  economic  and
   technological factors that may  enhance or impede EPA's progress toward achieving the
   Strategic Goals.

Objective Sections Include:

•  Objective Statement:  Objectives are a critical part of the planning and budgeting process
   and they respond to the GPRA requirement to plan achievable Objectives.  Each Objective
   supports the attainment of a specific long-term Goal.
                                         i-14

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•  Resource Summary:  Reports resources by Appropriation account and Program/Project for
   the Objective.   Enabling Support Programs  do not have resource charts because these
   resources are accounted for in the five Goals.

•  Results to be Achieved under this Objective:  Elaborates on the Objective and describes
   the programmatic results or outcomes to be achieved under it in FY 2005.

•  Program/Projects: Reports program activities under each Program/Project, which are major
   program areas of responsibility.  Resources listed under an Objective may not represent the
   total Program/Project resources, as a Program/Project may support more than one Objective.

•  FY 2005 Request:  This section describes specific Agency plans and  activities required to
   meet performance goals.

•  FY 2005 Change from FY 2004:  Describes major changes, by appropriation account, in
   programmatic funding within the Objective.

•  Annual Performance Goals and Performance Measures: Annual Performance Goals are
   the annual incremental effort to measure progress toward achieving the long-term Objective.
   They can be either outcomes or outputs, and as  such, are quantifiable  standards, values, or
   rates against which actual achievement can be compared.  They help establish the connection
   between the day-to-day activities  in the Agency's programs to longer-term objectives and are
   used by managers to determine how well a program or activity contributes to accomplishing
   objectives.  In  the Objective sections of this Annual Plan and Budget,  performance
   mformation is provided for three years: FY 2003 - FY 2005. This Annual Plan and Budget
   also  contains a section providing performance information for six years, FY 2000 - FY 2005,
   to fulfill the  Office  of  Management and Budget  requirement to  show  six years of
   performance information.  Performance  Measures provide the means for determining the
   extent to which annual goals and multi-year objectives are achieved and whether efficiency is
   improving.  As such, they are essential to program evaluations that help guide the Agency's
   strategic planning. As with the  Annual Performance Goals, this Annual Plan and Budget
   includes Performance Measure data for three years.

•  Verification and Validation  of Performance Measures:  This  section describes  how
   Performance Measurement data is  verified and validated.  It includes a description of the
   source of performance data as  well as procedures for ensuring quality.  It may also include
   information on the methodology of data collection and review.

•  Efficiency Measures/Measurement Development Plans: Efficiency measures quantify the
   ratio of a unit of result relative to a unit of input.  Programs that have been reviewed with the
   Program Assessment Rating Tool (PART) have  developed at least one efficiency measure.
   Measurement Development Plans are written plans that discuss  a multi-year approach to
   developing  performance measures.   These plans have annual milestones  for tracking
   performance progress.
                                         i-15

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•  Coordination with Other Agencies: This section describes partnerships with other Federal,
   state, local, and Tribal governments crucial to the success of EPA's environmental programs.

•  Statutory Authority: This section cites the public laws that authorize the Agency to carry
   out the various program activities to achieve the long-term Objective.

•  Enabling/Support Programs (ESP)

       This  section includes a  narrative,  resource data,  an explanation of change,  and
performance information for the Agency's Enabling and Support Programs.

Annual Performance Goals and Measures

       This section provides performance information for six years: Actual accomplishments for
FY 2000 through FY 2002, the estimated performance based on the FY 2003 enacted budget,
and performance estimates based on the budget requests for FY 2004 and FY 2005.

Special Analyses

       This final section of the Annual Performance Plan and Budget includes:

•  Major Management Issues:  Describes  the nature of  EPA's most  pressing  management
   problems, actions taken, and progress to date in addressing major management challenges
   faced by the Agency.

•  Annual  Performance  Plan Components:  Defines the Annual Plan  components of the
   Annual Performance Plan and Budget.

•  User Fees: Describes the Agency's user fee programs. User fees are currently authorized as
   the proposed collection of fees charged to Agency customers, which partially cover the cost
   of selected permitting, testing, registration, and approval actions.

•  Working Capital Fund: Provides information on the Working Capital Fund, a  revolving
   fund authorized by law to finance a cycle of operations, where the costs of goods and
   services provided are charged to the Agency users on a fee-for-service basis.

•  State and Tribal Assistance Grants (STAG):   Provide tables  on STAG  components,
   categorical grants, and statutory authorities for the STAG appropriation.

•  Program/Projects: Reports totals for Agency Program/Projects across Goals and Objectives.
   As noted above, Program/Project resource data represents 100% of the Agency's budget.

•  Capital Planning and Investment Control (CPIC) Summary:  Summarizes the Agency's
   proposals for and reviews of major Information Technology (IT) acquisitions.
                                         i-16

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•  Administration's Program Assessment Rating Tool (PART):  Provides information for
   the Agency's assessment of program purpose  and design,  strategic planning, program
   management, and program results.  PART is tailored to the following seven distinct types of
   Federal programs—competitive grant, block/formula grant, regulatory-based, capital assets
   and service acquisition, credit, research and development, and direct Federal.

•  Agency Activities by National Program Manager (NPM):  Identifies resources by Agency
   activity for each NPM.

•  Agency Activities:   Provides resource data by  Agency activity.  Activity data represent
   100% of the Agency's budget.

Relationship between the Annual Performance Plan and the Strategic Plan

       The Annual Performance Plan makes no substantive changes to the Agency's draft
Strategic Plan that was submitted to OMB in August 2003.

Long-term Relationship between Budgeted Resources and Annual Performance Goals and
Measures

       Annual Performance Goals are related to the resource levels contained in each Objective.
Annual Performance Goals for FY 2005 in this Annual Performance  Plan are based upon the
resource  levels in the Agency's FY 2005 Budget request.   However, resources may contribute
not only to the budget year's Annual Performance  Goals, but also to the accomplishment of
Goals in  future years. For example, a performance goal to  complete a number of Superfund site
cleanups, or develop research methods and models, generally requires  a period longer than one
year.  Thus, FY 2005 activities will contribute to completion of work in FY  2005 or beyond.
Likewise, some FY 2005 Annual Performance Goals are achievable only with funding provided
in prior years.

       Given this multi-year characteristic of some of the resources requested, it is not always
possible  to establish direct linkages between resources requested for a particular year and the
achievement of performance goals for that year.  Nevertheless, when developing regulatory
impact analyses or justifications for programs and legislation, EPA regularly makes estimates
that link activities by EPA, states, tribes, regulated communities, and citizens to outcomes by
some future date.  In doing so, EPA estimates not only its costs but also society's costs (of which
EPA's is a subset) to achieve health and environmental benefits of clean air, clean water, or
better  handling and disposal of hazardous chemicals.  The Agency is able to leverage its
resources to achieve such benefits as avoiding excess cancer risk, premature mortalities, asthma-
related hospital visits, mitigation of crop losses, and loss of visibility in our National Parks.
                                          i-17

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Resource Tables

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification

Table of Contents
Resource Tables
      Resources by Appropriation	RT-1
      Resources by Goal/Appropriation	RT-3
      Resources by Goal/Objective	RT-8

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                              Environmental Protection Agency

            FY 2005 Annual Performance Plan and Congressional Justification

                              APPROPRIATION SUMMARY
                                        Budget Authority
                                           Full-time
                                      (Dollars in Thousands)
Credit Subsidy Re-estimate
   Budget Authority

Environmental Program & Management
   Budget Authority
   Full-time equivalents (FTE)

Envir. Program & Mgmt - Reim
   Full-time equivalents (FTE)

Science & Technology
   Budget Authority
   Full-time equivalents (FTE)

Science and Tech. - Reim
   Full-time equivalents (FTE)

Building and Facilities
   Budget Authority

State and Tribal Assistance Grants
   Budget Authority

Leaking Underground Storage Tanks
   Budget Authority
   Full-time equivalents (FTE)

Oil Spill Response
   Budget Authority
   Full-time equivalents (FTE)

FEMA - Reim
   Full-time equivalents (FTE)

Inspector General
   Budget Authority
   Full-time equivalents (FTE)

Rereg. &  Exped. Proc. Rev Fund
   Full-time equivalents (FTE)

Hazardous Substance Superfund
   Budget Authority
   Full-time equivalents (FTE)

Superfund Reimbursables
   Full-time equivalents (FTE)

FY 2003 Actuals include carryover dollars.
FY2003
Actuals*
$905.5
$2,102,760.1
11,055.4
43.3
$679,088.6
2,440.6
3.2
$38,486.3
$3,902,106.7
$71,412.8
73.5
$15,582.7
87.3
6.8
$34,502.5
257.1
190.9
$1,343,273.9
3,365.4
FY2004
Pres. Bud.
$0.0
$2,219,659.0
11,214.7
1.5
$731,482.6
2,460.5
3.0
$42,918.0
$3,121,200.0
$72,545.4
80.3
$16,208.8
100.0
0.0
$36,807.7
271.6
187.2
$1,389,715.8
3,346.7
FY2004
Omnibus
$0.0
$2,280,045.9
0.0
0.0
$781,684.7
0.0
0.0
$39,764.0
$3,877,387.6
$75,551.6
0.0
$16,113.4
0.0
0.0
$37,336.4
0.0
0.0
$1,257,536.5
0.0
FY2005
Pres. Bud.
$0.0
$2,316,958.0
11,271.0
1.5
$689,185.0
2,460.5
3.0
$42,918.0
$3,231,800.0
$72,545.0
79.3
$16,425.0
100.0
0.0
$37,997.0
271.6
187.2
$1,381,416.0
3,352.7
1.9
83.5
0.0
77.5
                                             RT-1

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                             Environmental Protection Agency

            FY 2005 Annual Performance Plan and Congressional Justification

                              APPROPRIATION SUMMARY
                                        Budget Authority
                                           Full-time
                                     (Dollars in Thousands)
WCF-REIMB
   Full-time equivalents (FTE)

Offsetting Receipts
   Budget Authority

Total
   Budget Authority
   Full-time equivalents (FTE)
                                       FY2003
                                       Actuals*
       96.0
       $0.0
$8,188,119.1
    17,621.4
                 FY2004
                Pres. Bud.
       99.7
  ($4,000.0)
$7,626,537.3
    17,848.7
                 FY2004
                Omnibus
        0.0
       $0.0
$8,365,420.1
        0.0
                 FY2005
                Pres. Bud.
       99.7
 ($30,000.0)
$7,759,244.0
    17,904.0
FY 2003 Actuals include carryover dollars.
                                            RT-2

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                              Environmental Protection Agency
            FY 2005 Annual Performance Plan and Congressional Justification
                        GOAL, APPROPRIATION SUMMARY
                                       Budget Authority
                                          Full-time
                                    (Dollars in Thousands)
                                                   FY2003
                                                    Actuals
Clean Air and Global Climate Change
   Budget Authority
   Full-time equivalents (FTE)
   Environmental Program & Management
      Budget Authority
      Full-time equivalents (FTE)
   Envir. Program & Mgmt - Reim
      Full-time equivalents (FTE)
   Science & Technology
      Budget Authority
      Full-time equivalents (FTE)
   Science and Tech. — Reim
      Full-time equivalents (FTE)
   Building and Facilities
      Budget Authority
   State and Tribal Assistance Grants
      Budget Authority
   FEMA - Reim
      Full-time equivalents (FTE)
   Inspector General
      Budget Authority
      Full-time equivalents (FTE)
   Hazardous Substance Superfund
      Budget Authority
      Full-time equivalents (FTE)
   WCF-REIMB
      Full-time equivalents (FTE)
 $882,811.6
    2,702.6

 $416,801.6
    1,919.0

        1.2

 $197,661.1
      703.2

        3.2

   $8,560.5

 $252,531.8

        6.8

   $4,198.2
       31.3

   $3,058.4
       18.7

       19.2
                 FY2004
                Pres. Bud.
 $915,983.1
    2,737.9

 $451,848.7
    1,948.8

        0.5

 $199,500.1
      702.7

        3.0

   $8,710.1

 $247,750.0

        0.0

   $5,147.0
       38.0

   $3,027.2
       17.3

       27.6
                 FY2005
                Pres. Bud.
$1,004,615.5
     2,756.6

  $467,758.4
     1,963.7

        0.6

  $205,788.5
      702.9

        3.0

    $9,387.0

  $312,750.0

        0.0

    $5,724.6
       40.9

    $3,207.1
        18.2

        27.3
 Clean and Safe Water
    Budget Authority
    Full-time equivalents (FTE)
$3,725,201.9
     2,941.4
$2,959,731.8
     3,053.6
 $2,936,968.6
     3,041.4
                                              RT-3

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                              Environmental Protection Agency
            FY 2005 Annual Performance Plan and Congressional Justification
                        GOAL, APPROPRIATION SUMMARY
                                      Budget Authority
                                          Full-time
                                    (Dollars in Thousands)
   Environmental Program & Management
      Budget Authority
      Full-time equivalents (FTE)
   Envir. Program & Mgmt - Reim
      Full-time equivalents (FTE)
   Science & Technology
      Budget Authority
      Full-time equivalents (FTE)
   Building and Facilities
      Budget Authority
   State and Tribal Assistance Grants
      Budget Authority
   Inspector General
      Budget Authority
      Full-time equivalents (FTE)
   WCF-REEMB
      Full-time equivalents (FTE)
                                                   FY2003
                                                   Actuals
 $452,771.1
    2,262.4

       15.0
                 FY2004
                Pres. Bud.
$469,732.3
   2,404.3

       0.2
                FY2005
               Pres. Bud.
$476,512.4
   2,396.8

       0.2
$119,803.6
489.6
$5,776.0
$3,126,602.1
$20,249.1
150.9
$123,635.7
489.8
$5,876.0
$2,341,564.0
$18,923.9
139.6
$102,236.8
489.7
$6,323.0
$2,333,033.0
$18,863.3
134.8
       23.4
      19.7
      19.9
Land Preservation and Restoration
   Budget Authority
   Full-time equivalents (FTE)
   Environmental Program & Management
      Budget Authority
      Full-time equivalents (FTE)
   Envir. Program & Mgmt - Reim
      Full-time equivalents (FTE)
   Science & Technology
      Budget Authority
      Full-time equivalents (FTE)
   Building and Facilities
      Budget Authority
$1,706,796.3     $1,779,473.5     $1,798,171.0
     4,675.2         4,744.8          4,708.5
  $195,863.6
     1,204.0

        2.8

   $16,748.6
       48.6

    $4,518.8
$202,941.3
    1,233.6

       0.1

  $10,374.9
   -  48.5

   $6,480.5
$201,365.1
    1,208.4

       0.1

   $9,112.3
      48.3

   $5,052.2
                                              RT-4

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                             Environmental Protection Agency
            FY 2005 Annual Performance Plan and Congressional Justification
                        GOAL, APPROPRIATION SUMMARY
                                      Budget Authority
                                         Full-time
                                   (Dollars in Thousands)
  State and Tribal Assistance Grants
     Budget Authority
  Leaking Underground Storage Tanks
     Budget Authority
     Full-time equivalents (FTE)
  Oil Spill Response
     Budget Authority
     Full-time equivalents (FTE)
  Oil Spill Response - Reim
     Full-time equivalents (FTE)
  FEMA - Reim
     Full-time equivalents (FTE)
  Inspector General
     Budget Authority
     Full-time equivalents (FTE)
  Hazardous Substance Superfund
     Budget Authority
      Full-time equivalents (FTE)
  Superfund Reimbursables
      Full-time equivalents (FTE)
  WCF-REEMB
      Full-time equivalents (FTE)   '
                                                  FY2003
                                                  Actuals
 $119,942.0

  $71,412.8
      73.5

  $15,582.7
      87.3

        6.8

       11.1
       81.3
                FY2004
               Pres. Bud.
 $118,350.0

  $72,545.4
       80.3

  $16,208.8
      100.0
        0.0
       83.5
                        6.1
                FY2005
               Pres. Bud.
 $144,350.0

  $72,545.0
       79.3

  $16,425.0
      100.0

        0.0

        0.0
$1,927.0
14.4
$1,280,800.7
3,137.1
$2,310.2
17.0
$1,350,262.3
3,175.7
$2,510.2
17.9
$1,346,811.1
3,173.1
       77.5
                        3.9
Healthy Communities and Ecosystems
   Budget Authority
   Full-time equivalents (FTE)
   Credit Subsidy Re-estimate
      Budget Authority
   Environmental Program & Management
      Budget Authority
      Full-time equivalents (FTE)
$1,211,267.2
     3,923.7

     $905.5

  $567,462.7
     2,577.4
$1,262,441.0
     3,824.4

       $0.0

  $592,145.4
     2,510.1
$1,298,932.0
     3,850.1

       $0.0

  $648,213.7
     2,529.8
                                             RT-5

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                             Environmental Protection Agency
            FY 2005 Annual Performance Plan and Congressional Justification
                        GOAL, APPROPRIATION SUMMARY
                                      Budget Authority
                                         Full-time
                                    (Dollars in Thousands)
                                                   FY2003
                                                   Actuals
   Envir. Program & Mgmt - Reim
     Full-time equivalents (FTE)
   Science & Technology
     Budget Authority
     Full-time equivalents (FTE)
   Building and Facilities
     Budget Authority
   State and Tribal Assistance Grants
     Budget Authority
   Inspector General
     Budget Authority
     Full-time equivalents (FTE)
   Rereg. & Exped. Proc. Rev Fund
     Full-time equivalents (FTE)
   Hazardous Substance Superfund
     Budget Authority
     Full-time equivalents (FTE)
   WCF-REJMB
     Full-time equivalents (FTE)

Compliance and Environmental Stewardship
   Budget Authority
   Full-time equivalents (FTE)
   Environmental Program & Management
     Budget Authority
     Full-time equivalents (FTE)
   Envir. Program & Mgmt - Reim
     Full-time equivalents (FTE)
   Science & Technology
      Budget Authority
     Full-time equivalents (FTE)
      29.1

$291,540.9
     977.7

 $13,335.9

$294,762.4

  $5,441.5
      40.5

     190.8

 $37,818.4
      71.7

      36.4
$662,042.0
   3,492.9

$469,861.0
   3,107.4

      14.1

  $53,334.4
     221.4
                FY2004
               Pres. Bud.
       0.5

$341,698.2
     995.5

 $13,561.5

$292,736.0

  $7,000.8
      51.7

     187.2

 $15,299.1
      42.7

      36.7
$712,907.9
   3,489.3

$502,991.3
   3,119.2

       0.2

  $56,273.7
     223.9
               FY2005
               Pres. Bud.
       0.5

$321,578.6
     997.4

 $14,651.1

$297,867.0

  $7,220.1
      51.6

     187.2

  $9,401.5
      43.8

      39.9
$750,556.9
   3,547.4

$523,108.4
   3,172.3

       0.2

  $50,468.8
     222.2
                                             RT-6

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                             Environmental Protection Agency
            FY 2005 Annual Performance Plan and Congressional Justification
                       GOAL, APPROPRIATION SUMMARY
                                     Budget Authority
                                         Full-time
                                   (Dollars in Thousands)
   Building and Facilities
     Budget Authority
   State and Tribal Assistance Grants
     Budget Authority
   Inspector General
     Budget Authority
     Full-time equivalents (FTE)
   Hazardous Substance Superfund
     Budget Authority
     Full-time equivalents (FTE)
   WCF-REIMB
     Full-time equivalents (FTE)
                                                  FY2003
                                                  Actuals
   $6,295.1

 $108,268.4

   $2,686.8
       20.0

  $21,596.3
      121.3

        8.7
                FY2004
                Pres. Bud.
  $8,289.9

$120,800.0

  $3,425.8
      25.3

 $21,127.2
     111.0

       9.6
               FY2005
              Pres. Bud.
  $7,504.7

$143,800.0

  $3,678.7
      26.3

 $21,996.3
     117.6

       8.8
Total
      Budget Authority
      Full-time equivalents (FTE)
$8,188,119.1     $7,630,537.3     $7,789,244.0
    17,735.7         17,850.0        17,904.0
                                             RT-7

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                              Environmental Protection Agency
             FY 2005 Annual Performance Plan and Congressional Justification
                            GOAL, OBJECTIVE SUMMARY
                                       Budget Authority
                                          Full-time
                                    (Dollars in Thousands)
Clean Air and Global Climate Change
   Budget Authority
   Full-time equivalents (FTE)
   Healthier Outdoor Air
      Budget Authority
      Full-time equivalents (FTE)
   Healthier Indoor Air
      Budget Authority
      Full-time equivalents (FTE)
   Protect the Ozone Layer
      Budget Authority
      Full-time equivalents (FTE)
   Radiation
      Budget Authority
      Full-time equivalents (FTE)
   Reduce Greenhouse Gas Intensity
      Budget Authority
      Full-time equivalents (FTE)
   Enhance Science and Research
      Budget Authority
      Full-time equivalents (FTE)
FY2003
Actuals
$882,811.6
2,702.6
$557,907.1
1,706.6
$44,299.1
152.0
$18,145.2
39.2
$30,046.8
168.1
$99,836.4
251.3
$132,577.0
385.2
FY2004
Pres. Bud.
$915,983.1
2,737.9
$579,059.2
1,751.5
$48,042.5
149.9
$19,069.4
36.1
$34,858.9
185.0
$106,936.5
244.1
$128,016.6
371.2
FY2005
Pres. Bud.
$1,004,615.5
2,756.6
$659,876.2
1,765.9
$48,954.7
153.2
$21,813.7
36.7
$34,718.0
183.9
$108,389.3
244.6
$130,863.6
372.4
Clean and Safe Water
   Budget Authority
   Full-time equivalents (FTE)
   Protect Human Health
      Budget Authority
      Full-time equivalents (FTE)
   Protect Water Quality
      Budget Authority
$3,725,201.9
     2,941.4

$1,259,787.6
      859.7
$2,959,731.8
    3,053.6

$1,192,187.1
      916.8
$2,346,144.8       $1,647,043.1
$2,936,968.6
     3,041.4

$1,170,339.6
      910.9

$1,645,669.9
                                             RT-8

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                               Environmental Protection Agency
             FY 2005 Annual Performance Plan and Congressional Justification
                             GOAL, OBJECTIVE SUMMARY
                                        Budget Authority
                                           Full-time
                                     (Dollars in Thousands)
      Full-time equivalents (FTE)
   Enhance Science and Research
      Budget Authority
      Full-time equivalents (FTE)
                                               FY2003
                                               Actuals
     1,546.0

  $119,269.5
      535.7
 FY2004
Pres. Bud.
     1,610.2

  $120,501.6
       526.7
                                     FY2005
                                    Pres. Bud.
     1,603.9

  $120,959.1
      526.5
Land Preservation and Restoration
   Budget Authority
   Full-time equivalents (FTE)
   Preserve Land
      Budget Authority
      Full-time equivalents (FTE)
   Restore Land
      Budget Authority
      Full-time equivalents (FTE)
   Enhance Science and Research
      Budget Authority
      Full-time equivalents (FTE)
$1,706,796.3
     4,675.2

  $205,443.3
      717.7

$1,454,821.4
     3,772.7

   $46,531.6
      184.8
$1,779,473.5
     4,744.8

  $210,990.1
       740.9

$1,508,646.8
     3,822.6

   $59,836.6
       181.4
$1,798,171.0
     4,708.5

  $237,149.8
      725.4

$1,503,465.6
     3,796.7

   $57,555.6
      186.4
Healthy Communities and Ecosystems
   Budget Authority                            $1,211,267.2       $1,262,438.1        $1,298,932.0
   Full-time equivalents (FTE)                         3,923.7            3,824.4             3,850.1
   Chemical, Organism, and Pesticide Risks
      Budget Authority                           $345,298.1         $364,126.3          $383,305.4
      Full-time equivalents (FTE)                      1,819.1            1,837.0             1,859.8
   Communities
      Budget Authority                           $313,167.7         $317,572.9          $319,958.4
      Full-time equivalents (FTE)                       327.5             372.0              369.6
   Ecosystems
      Budget Authority                           $171,169.4         $160,698.1          $200,844.5
      Full-time equivalents (FTE)                       546.0             384.8              390.8
                                              RT-9

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                             Environmental Protection Agency
            FY 2005 Annual Performance Plan and Congressional Justification
                           GOAL, OBJECTIVE SUMMARY
                                      Budget Authority
                                          Full-time
                                    (Dollars in Thousands)
   Enhance Science and Research
      Budget Authority
      Full-time equivalents (FTE)
                                             FY2003
                                             Actuals
 $380,878.7
     1,230.8
 FY2004
Pres. Bud.

  $420,040.9
     1,230.4
                                    FY2005
                                   Pres. Bud.
 $394,823.7
     1,230.0
Compliance and Environmental Stewardship
   Budget Authority
   Full-time equivalents (FTE)
   Improve Compliance
      Budget Authority
      Full-time equivalents (FTE)
   Improve Environmental Performance
      through Pollution Prevention and
      Innovation
      Budget Authority
      Full-time equivalents (FTE)
   Build Tribal Capacity
      Budget Authority
      Full-time equivalents (FTE)
   Enhance Science and Research
      Budget Authority
      Full-time equivalents (FTE)
 $662,042.0
    3,492.9

 $395,964.4
    2,555.4
  $712,907.9
     3,489.3

  $418,998.2
     2,529.4
 $750,556.9
    3,547.4

 $431,695.1
    2,587.4
$123,311.5
544.2
$70,556.6
99.8
$72,209.6
293.5
$137,968.5
556.1
$78,759.3
99.5
$77,181.8
304.4
$169,802.0
562.6
$78,931.1
98.4
$70,128.7
299.0
Total
      Budget Authority
      Full-time equivalents (FTE)
$8,188,119.1
    17,735.7
 $7,630,537.3
    17,850.0
$7,789,244.0
    17,904.0
                                            RT-10

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Goal 1: Clean Air and! Global
     Climate Change

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 1: Clean Air and Global Climate Change	1-1
       Healthier Outdoor Air	1-14
       Healthier Indoor Air	1-65
       Protect the Ozone Layer	1-92
       Radiation	1-100
       Reduce Greenhouse Gas Intensity	1-111
       Enhance Science and Research	1-133
       Subject Index	;	1-147

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                            Environmental Protection Agency

            FY 2005 Annual Performance Plan and Congressional Justification

                          Clean Air and Global Climate Change

STRATEGIC GOAL; Protect and improve the air so it is healthy to breathe and risks to human
health and  the  environment  are  reduced. Reduce greenhouse gas  intensity by  enhancing
partnerships with businesses and other sectors.

                                   Resource Summary
                                  (Dollars in thousands)


Clean Air and Global Climate Change
Healthier Outdoor Air
Healthier Indoor Air
Protect the Ozone Layer
Radiation
Reduce Greenhouse Gas Intensity
Enhance Science and Research
Total Workyears

FY2003
Actuals
$882,811.6
$557,907.1
$44,299.1
$18,145.2
$30,046.8
$99,836.4
$132,577.0
2,702.6

FY2004
Pres. Bud.
$915,983.1
$579,059.2
$48,042.5
$19,069.4
$34,858.9
$106,936.5
$128,016.6
2,737.9

FY2005
Pres. Bud.
$1,004,615.5
$659,876.2
$48,954.7
$21,813.7
$34,718.0
$108,389.3
$130,863.6
2,756.6

FY 2005 Req. v.
FY 2004 Pres
Bud
$88,632.4
$80,817.1
$912.1
$2,744.3
($141.0)
$1,452.9
$2,847.1
18.7

BACKGROUND AND CONTEXT

       Based on air quality trends measured at more than 5000 monitoring sites across the U.S.,
air quality has improved steadily since the 1970s. This improvement has occurred even as Gross
Domestic Product has increased by 164 percent, miles traveled by cars and trucks have increased
155 percent, energy consumption has increased by 42 percent; and population has increased by
38 percent.1

       Concerted efforts  and steady progress have achieved cleaner, healthier air,  but air
pollution continues to be a human health and environmental problem in the U.S. and around the
world.  The average  adult breathes over 3,400 gallons of air every day.  Children are  more
susceptible to  air pollution because they breathe even more air per pound of body weight than
adults. Children also are at greater risk because they are more active outdoors and their lungs are
still developing. The elderly are more sensitive to air pollution because they often have heart or
lung disease.2

       Pollutants hi the ah" cause cancer or other serious  health effects,  including respiratory,
developmental, and reproductive problems.  Certain pollutants, such as some metals and certain
organic chemicals, that are emitted from industrial and other sources can be deposited into water
1  U.S. EPA, Latest Findings on National Air Quality: 2002 Status and Trends Report, 454/K-03-001 (August 2003),
http://www.epa.gov/airtrends/.
2 Ibid

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bodies and magnified through the food web, adversely affecting fish-eating humans and animals.
Air pollution also damages crops and forests, makes soil and waterways more acidic, reduces
visibility, and accelerates corrosion of buildings and monuments.3

       In addition, air pollutants diminish the protective ozone layer in the upper atmosphere.
Human activities  also affect the mixture of gases  in  the atmosphere and contribute to the
potential for world climate change.

       Outdoor  Air Pollution:  The Clean Air Act4 addresses three  general  categories of
outdoor air pollution:  "criteria" pollutants, air toxics, and acid rain.  Criteria pollutants include
six common pollutants: particulate matter (PM), ozone, sulfur dioxide (SOa), nitrogen dioxide
(NOa), carbon monoxide  (CO), and lead, for which EPA sets National Ambient Air Quality
Standards to protect public health and the environment.  Air toxics, also called  hazardous air
pollutants (HAPs), are pollutants that  are known or suspected to  cause cancer or other serious
health problems, such as reproductive effects or birth defects, or adverse ecological effects.  The
Clean Air Act lists 188 HAPs.  Examples include:  dioxin, mercury, benzene, toluene, and
xylene. Acid rain is formed when SOa and nitrogen  oxides (NOX) react in the atmosphere with
water, oxygen, and oxidants to form acid droplets.

       The paragraphs below summarize the health  and environmental effects associated with
the six criteria pollutants, air toxics, and acid rain.5

       •      Particulate  matter.   PM  is  associated  with a wide variety of  health  and
       environmental problems. When exposed to higher concentration of fine PM, people with
       existing lung or heart diseases - such as asthma, chronic obstructive pulmonary disease,
       congestive heart disease, or coronary artery disease —  are  at increased risk of health
       problems requiring hospitalization or of premature death.  Similarly, children and people
       with existing lung disease may not be able to breathe as  deeply or vigorously as they
       normally would and they may  experience symptoms such  as coughing and shortness of
       breath.  Fine PM can increase  susceptibility to respiratory infections and  can aggravate
       existing respiratory diseases, such as asthma and chronic bronchitis, causing more use of
       medication and more doctor visits.

       PM also is a major  cause of haze and reduced visibility in parts  of the U.S., including
       many of our national parks.  Particles can be carried over long distances by wind and then
       settle on ground or water. The effects of certain PM settling may include acidifying lakes
       and streams, changing the nutrient balance in coastal waters and watersheds, depleting
       the nutrients hi soil, damaging sensitive  forests and farm  crops, and decreasing the
       diversity of ecosystems.

       •      Ground-level ozone (smog).  When breathed at any concentration,  ozone can
       irritate and inflame a person's  airways.  Health effects attributed to exposures to ozone,
       generally while  individuals  are  engaged in  moderate  or  heavy  exertion, include
3 Ibid
4 Clean Air Act Title 1, Part A and Part D, Subparts 3 and 5 (42 U.S.C. 7401-7431, 7512-7512a, 7514-7541a)(15 U.S.C. 2605);
Clean Air Act Amendments Title II (42 U.S.C. 7521-7590); Clean Air Act Amendments, Title IV (42 U.S.C. 7651-7661); Clean
Air Act (42 U.S.C. 7401-7671q)
 Latest Findings on National Air Quality: 2002 Status and Trends Report

                                            1-2

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significant decreases in lung function and increased respiratory symptoms such as chest
pain and cough as concentrations rise. Exposures to ozone result in lung inflammation,
aggravate respiratory diseases such as asthma, and may make people more susceptible to
respiratory effects.  Other at-risk groups include  adults who are active  outdoors  and
individuals with respiratory disorders such as asthma.

Ground-level ozone interferes with the ability of many plants to produce and store food.
This reduces crop and forest yields by making plants more susceptible to disease, insects,
other pollutants, and harsh weather.  Ozone also damages the leaves of trees and other
plants, affecting the appearance of cities, national parks, and recreation areas.

•      Sulfur dioxide. Peak levels of SO2 can cause temporary breathing difficulty for
people with asthma who are active outdoors.  Longer-term exposure to a combination of
SO2 and fine particles can cause respiratory illness, alter the defense mechanisms of
lungs,  and aggravate cardiopulmonary disease.  People who may be most  susceptible to
these effects include individuals with cardiovascular disease or chronic lung disease, as
well as children and the elderly. SOa also is a major contributor to acidic deposition.
•      Nitrogen dioxide.   Exposure  to  NOa causes  respiratory  symptoms  such as
coughing, wheezing, and shortness of breath in children and adults with respiratory
diseases such as asthma.  Even short exposures to NOa affect lung function. NO2 also
contributes to acidic deposition, eutrophication in coastal waters, and visibility problems.

•      Carbon monoxide. The health threat from even low levels of CO is most serious
for those who suffer from heart disease, like angina, clogged arteries, or congestive heart
disease. For a person with heart disease, a single exposure to CO at low levels may cause
chest pain and reduce that  person's ability to exercise.  Even healthy people can be
affected by high levels of CO.  People who breathe higher levels of CO can develop
vision problems, experience reduced  ability  to work or learn, have reduced manual
dexterity, and have difficulty performing complex tasks.  CO is most  dangerous hi
enclosed or confined spaces and will cause death.

•      Lead. Lead causes damage to the kidneys, liver, brain and  nerves, and to other
organs.  Excessive exposure to lead  causes  seizures,  mental  retardation, behavioral
disorders, memory  problems, and mood changes. Low levels of lead damage the brain
and nerves in fetuses and young children, resulting in learning deficits and lowered IQ.

*      Air toxics:  Air toxics or HAPs, are pollutants that are known  or suspected to
cause  cancer or other serious health  problems,  such as reproductive  effects  or birth
defects, or adverse  environmental effects.  HAPs are emitted from thousands of sources,
including automobiles, utilities, and industries.  HAPs also can contribute to the levels of
PM  and volatile organic compounds (VOCs), precursors to ozone.  Adverse effects to
human health and the environment due to HAPs can result from even low level exposures
to air toxics from individual facilities, exposures to mixtures of pollutants found in urban
settings, or exposures to pollutants emitted from distant  sources  that  are transported
through the atmosphere over regional, national, or even global airsheds.
                                     1-3

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       Compared to information for the six criteria pollutants, the information about the ambient
       concentrations of HAPs and their potential health effects is relatively incomplete.  Most
       of the information on the potential health effects of these  pollutants  is derived from
       experimental data.  Of the 188 HAPs, almost 60 percent are  classified by the Clean Air
       Act (section 112 (f)(2)(A))  as known, probable, or possible carcinogens.  One of the
       often-documented ecological concerns associated with toxic air pollutants is the potential
       to damage aquatic ecosystems.

       •      Acid rain. Emissions of SO2 and NOX react in the atmosphere and fall to earth as
       acid rain, causing acidification of lakes and streams  and contributing to the damage of
       trees at high elevations. Acid deposition also accelerates the  decay of building materials
       and paints and contributes to degradation of irreplaceable cultural objects, such as statues
       and sculptures. NOX deposition contributes to eutrophication of coastal waters, such as
       the Chesapeake Bay and Tampa Bay.  Before falling to earth, SO2 and NOX gases form
       fine particles (fine PM) that affect public health by contributing to premature mortality,
       chronic bronchitis, and other respiratory problems.

       Indoor Air Pollution:  Indoor  air levels of many  pollutants may be two to five times,
and occasionally more than 100 times, higher than outdoor levels. There is no comprehensive
monitoring of the quality of indoor air in the  U.S. and the actual levels for many pollutants are
not well understood.  Indoor air pollutants are of particular concern because most people spend
as much as 90% of their tune indoors. Common sources can include  burning kerosene, wood, or
oil; smoking  tobacco products; releases from  household cleaners, pesticides, building materials;
and radon. Inadequate ventilation can increase indoor pollutant levels by not bringing in enough
outdoor ah" to dilute emissions from indoor sources and by not carrying indoor air pollutants out
of the home.  High temperatures and humidity  levels can  also increase concentrations of some
pollutants.

       Poor  indoor air quality can cause short-term problems,  including  headaches, fatigue,
dizziness, nausea, and a scratchy throat. Other effects include cancer - particularly from long-
term exposure to high secondhand smoke and radon concentrations - and aggravation of chronic
respiratory diseases such as asthma. Exposure to naturally  occurring radon gas is the second
leading cause (after smoking tobacco) of lung  cancer among Americans.6

       Climate Change: The buildup of greenhouse gases—primarily carbon dioxide, methane,
and nitrous oxide—has heat-trapping  properties that may  impact  climate on Earth.   These
potential regional climate changes could alter forests, crop yields, and water supplies.  These
changes could also threaten human health, and harm birds, fish, and many types of ecosystems.

       Stratospheric Ozone Depletion: A protective ozone layer is located in the  stratosphere
about six to 30 miles  above the Earth's surface. This layer  protects humans and other species
from the sun's harmful ultraviolet radiation (UV).  This protective shield is being damaged by
chemicals such as chlorofluorocarbons (CFCs), halons, and methyl bromide,  and  can lead to
 Institute of Medicine, Clearing the Air: Asthma and Indoor Air Exposures (Washington, DC: The National Academy Press,
200). Available at http://books.nap.edu/books/0309064961/html/Rl.html.

                                           1-4

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harmful health effects such as skin cancer and cataracts.7  Increased UV also can lead to reduced
crop yield and disruptions in the marine food chain.

       Ozone depletion and climate change are separate environmental issues but are related in
some ways. Specifically, some substances that deplete the ozone layer also are potent and very
long-lived greenhouse gases that absorb outgoing radiation and warm the atmosphere.

       Radiation:  Radiation occurs naturally (e.g., radon), but we also use radioactive materials
hi electricity generation, in  industrial processes, and in medical diagnoses and treatments. Any
activity that produces or uses radioactive materials generates radioactive waste.  Mining, nuclear
power generation, and various processes in industry, defense, medicine, and  scientific research
produce byproducts that include radioactive waste.  Radioactive waste can be in gas, liquid, or
solid form, and the level of radioactivity can vary.  The waste can remain radioactive for a few
hours or several months or even hundreds of thousands of years. Frequent exposures to radiation
can cause cancer and other adverse health effects.

       Science and Research:  EPA relies on sound science in its clean air programs.  EPA uses
sound science to determine the relative risks that air pollution poses to human health  and the
environment.  In addition, the Agency utilizes science in an attempt to identify the best means to
detect, abate and avoid environmental problems associated with air pollutants.
MEANS AND STRATEGY

       The air problems that now remain are some of the most difficult to solve.  EPA's strategy
to address the overall goals of the clean air program includes a combination of national and local
measures that reflect the different roles of Federal, state, Tribal, and local governments. EPA,
states, and local agencies work together as partners to meet clean ah" goals cost-effectively by
employing an array of regulatory,  market-based,  and voluntary  approaches  and programs.
Federal assistance and leadership are  essential for developing and implementing cooperative
programs to prevent and control air pollution; for ensuring that national standards are met; and
for providing tools for states,  Tribes,  and  local  communities  to use  hi  preparing  and
implementing their clean air plans and programs.

       Healthier Outdoor Air:  Problems with broad regional, national or global impact -
emissions from power plants and other large sources, pollution from motor vehicles and fuels,
and stratospheric ozone depletion - are best handled primarily at the multi-state, regional, or
Federal level.  A national approach allows for the  use of traditional, regulatory tools where
appropriate,  and enables  EPA  to  implement  innovative,  market-based  techniques  such as
emissions trading, banking, and averaging, and other national programs cost-effectively.

       States, Tribes, and local agencies can best address the regional and local problems that
remain after Federal measures have been fully applied.   Many of these approaches employ
7 June 1999, "Synthesis Report of the Reports of the Scientific, Environmental Effects, Technology and Economic Assessment
Panels of the Montreal Protocol: A Decade of Assessments for Decision Makers Regarding the Protection of the Ozone Layer:
1988 - 1999"; January 2003, Report of the Montreal Protocol Science Assessment Panel, "Scientific Assessment of Ozone
Depletion: 2002";  March 2003, Report of the Montreal Protocol Environmental Effects Assessment Panel, "Environmental
Effects of Ozone Depletion: 2002".

                                            1-5

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innovative techniques, such as diesel retrofits and community-based approaches to toxics that are
well-suited to the local nature of many air-related problems. EPA works closely with public- and
private-sector partners and stakeholders to develop the tools - such as monitoring, modeling, and
emission inventories — that allow states, Tribes, and localities to  address these more localized
problems.

       EPA will also work to build the institutional capacity within developing countries and
regionally manage air pollution,  focusing on those  countries that have demonstrated potential
and commitment to affect human health and the environment globally. Programs include those
that address clean fuels, reduction of mercury and lead emissions, training on various air quality
issues, and partnering with existing clean air initiatives.

       To improve air quality and address the highest health and environmental risks, EPA will
proceed  with Federal  stationary and mobile source programs  aimed  at achieving  large,
nationwide, cost-effective reductions in emissions of PM and its contributors such as SC«2, NOX,
and elemental and organic-carbon; ozone-forming NOX; and volatile organic compounds (VOCs).

       The President's Clear Skies Initiative is a cornerstone of the EPA strategy. The proposed
legislation, re-introduced hi the Congress in February 2003, would create a mandatory program
that is designed to reduce dramatically power plant emissions of SOa, NOX, and mercury, three of
the most harmful air pollutants from power generators, from FY 2000 levels.8  (Alternatively, the
Interstate Air Quality and Utility Mercury Reduction Rules are integrated air rules proposed by
EPA  in December 2003 to achieve  many of Clear  Skies' objectives absent new legislation.).9
Both  Clear Skies and the proposed  integrated  air rules would create a market-based program,
with results guaranteed by emissions  caps  instituted over a period of time, an approach that
proved successful in reducing acid rain.   As the Clear Skies Initiative moves forward,  through
enactment of new legislation or promulgation of the proposed Interstate Air Quality and Utility
Mercury Reduction Rules, EPA will continue  to implement the Acid Rain Program to reduce
SOa and NOX emissions from electric  power generators and address the interstate transport of
ozone and NOX through the NOX Budget Program, a multi-state emissions allowance trading
program under the NOX SIP Call.  In addition, EPA is implementing national programs that will
dramatically reduce future emissions  from a  wide range of mobile sources,  including  cars,
minivans, sport utility vehicles (SUVs), trucks, buses, motorcycles, and nonroad engines.

       EPA will propose whether to update  the particulate matter standards in FY 2005 and will
continue the work necessary to propose whether to update the ozone standard in  FY 2006.  EPA
also will provide guidance and technical support to states, Tribes and local communities to help
meet  multiple  air quality standards and regional  haze  progress goals,  especially  for those
pollutants that share common precursors or emission  sources.

       Healthier Indoor Air: EPA implements two primary strategies to meet its human health
objective for indoor air quality,  increasing  public awareness and increasing partnerships with
non-governmental and professional entities.  EPA raises public awareness of actual and potential
indoor air risks so that individuals can  take steps to reduce exposure.  Outreach activities, in the
8 Senate and House of Representatives, Clear Skies Legislation Act of 2002, S. 2815 (July 29, 2002) and H,R. 5266 (My 26,
2002), http://www.epa.gov/clearskies/bill.pdf
9 40CFR Parts 51, 72, 75, 96 Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone (Interstate Air Quality
Rule) web site www.epa.gov/interstateairquality/

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form of educational literature, media campaigns, hotlines, and clearinghouse operations, provide
essential information about indoor air health risks not only to the public, but to the professional
and research communities as well.

       Underpinning EPA's outreach efforts is a strong commitment to environmental justice,
community-based  risk  reductions,  and  customer  service.   Through  partnerships, EPA
disseminates multi-media materials encouraging individuals, schools, and industry to take action
to reduce health risks in their indoor environments.  In addition, EPA uses technology transfer to
improve the ways hi which all types of buildings, including schools, homes, and workplaces, are
designed, operated, and maintained. To support  these voluntary approaches, EPA incorporates
the most current science available as the basis for recommending ways that people can reduce
exposure to indoor contaminants.

       Reduce Greenhouse Gas Intensity:    In 2002,  President Bush  announced  a new
approach to global climate change designed  to harness the  power of the  marketplace and
technological innovation.  The President committed America to cut greenhouse gas intensity by
18 percent over the next  decade.10  EPA's voluntary climate programs play a major  role hi
meeting this goal by working in partnership with businesses and other sectors through programs
that deliver multiple benefits while improving overall scientific understanding of climate change
and its potential consequences.   The core of  EPA's climate change efforts are voluntary
government/rndustry partnership programs — such as the ENERGY STAR program - designed to
capitalize on the tremendous opportunities  available to consumers, businesses, state and local
governments, and organizations to make sound investments in energy efficient equipment and
practices.  These voluntary programs remove barriers to existing and emerging technologies in
the marketplace,  resulting hi faster  deployment  of energy  efficient technology  into  the
residential, commercial, transportation, and industrial sectors of the economy.

       Through its Clean  Automotive Technology  (CAT) program, EPA develops unique new
technologies with high potential for improving air quality and dramatically improving  vehicle
efficiency.  Through partnerships with industry, significant elements of EPA's technologies will
be introduced commercially by vehicle manufacturers before the end of the decade. In addition,
EPA works with other key stakeholders in promoting the development and commercialization of
fuel cell technology in support of U.S. environmental, energy, and national security goals.

       Protect the Ozone Layer:  EPA's  strategy for restoring the ozone  layer includes
carrying out a program that includes domestic rules and international technology transfer. As a
signatory to the Montreal Protocol on Substances that Deplete the Ozone Layer, the  U.S. is
obligated to regulate and enforce the terms of the treaty domestically. In accordance with this
treaty and related  Clean Air Act requirements, EPA will continue to implement the domestic
rule-making agenda for the reduction and  control  of ozone-depleting substances (ODSs) and
enforce rules  controlling  their production, import, and  emission.   This  includes combining
market-based regulatory approaches with sector-specific technology guidelines and facilitating
the development and commercialization of alternatives to methyl bromide and HCFCs.  EPA will
strengthen outreach efforts to ensure efficient and effective compliance, and continue to identify
10 The White House, Office of the Press Secretary, President Announces Clear Skies & Global Climate Change Initiatives
(February 14,2002), http://m\w.whitehouse.gov/news/reieases/2002/02/20020214-5.html
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and  promote  safer alternatives to curtail  ozone  depletion.   To help reduce  international
emissions, EPA will assist with the transfer of technology to developing countries and work with
them to accelerate the phase-out of ODSs. EPA estimates that the worldwide phase-out of ODS
will  save 6.3 million lives from fatal cases of skin cancer, avoid 299 million cases of nonfatal
skin cancers, and avoid 27.5 million cases of cataracts in the U.S. alone between 1990 and 2165.

       Because the ozone layer is not expected to recover until the  middle of this century  at the
earliest, the public will continue to  be exposed to higher levels of UV radiation than existed prior
to the use and  emission of ODS.  Recognizing this and the public's current sun-exposure
practices, EPA will continue education and outreach efforts to encourage behavioral changes the
primary means of reducing UV-related health risks.

       Radiation: EPA continues to meet the statutory mandates for managing radiation  waste
and  controlling  radioactive  emissions  and to  fulfill its  responsibilities  under Presidential
Decision  Directives   for radiological  emergency  preparedness  and  response.     These
responsibilities form the core of our strategy  to protect the public and the environment from
unnecessary exposure  to radiation.  EPA works with states, Tribes,  and industry to develop
innovative training, public information and voluntary programs to minimize these exposures.

       Science and  Research:  To support achievement  of its clean  air objectives and  the
overall  goal of  clean  air for American  communities and  surrounding  ecosystems,  EPA will
ensure that  efforts to  reduce environmental risks  are based on the best  available scientific
information.   In addition, EPA will continue to integrate critical scientific assessment with
policy, regulatory and non-regulatory activities.

       EPA's air pollution research supports the Agency's mandated responsibilities under the
Clean  Air Act.    This research falls  into  two  distinct groups:  1)  research supporting  the
development and achievement of the national  ambient air quality  standards (NAAQS), and 2)
research on hazardous air pollutants.  NAAQS-related research focuses on tropospheric ozone
and  particulate matter (PM), while the Air Toxics Research program  provides the scientific
underpinnings of the Agency's activities to reduce hazardous air pollutants (HAPs) as identified
hi the Clean Air Act.

       PM research  provides methods, models, and data on the health risks associated with
exposure to PM, alone and in combination, focusing  on exposures, health effects, mechanisms of
injury, and identification of PM components that affect public health. In addition, both PM and
tropospheric ozone research provide implementation tools to support efforts by industry, state,
Tribal, and local regulators to develop and improve  State Implementation Plans (SIPs) to  attain
the NAAQS.

       Research on air toxics investigates the root causes of the environmental and human health
problems hi urban areas related to these pollutants.  Efforts in  this area provide the  necessary
health effects data,  measurements, methods,  models, information, and technical support to
Federal, state, Tribal, and local regulators and industry to estimate human health effects and
aggregate exposures  to  hazardous air pollutants.   Research also supports atmospheric and
emission modeling  hi order to estimate fate,  ambient  concentrations, and  mobile source
emissions of air toxics at a more refined scale. With this information, the Agency will be hi a
better position to determine risk and develop alternative strategies for maximizing risk reduction.

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       Several mechanisms are in place to ensure a high-quality air research program at EPA.
The Research Strategies Advisory Committee (RSAC) of EPA's Science Advisory Board (SAB),
an independent chartered Federal Advisory Committee Act (FACA) committee, meets annually
to conduct an in-depth review and analysis of EPA's Science and Technology account.  The
RSAC provides its findings to the House Science Committee and sends a written report on the
findings to EPA's Administrator  after every annual review.   Moreover,  EPA's Board of
Scientific Counselors (BOSC) provides counsel to the Assistant Administrator for the Office of
Research and Development (ORD) on the operation of ORD's research program. Also, under
the Science to Achieve Results (STAR) program all research projects are selected for funding
through a rigorous competitive external peer review process designed to ensure that only the
highest quality efforts receive funding support.  Our scientific and technical work products must
also undergo either internal or external peer review, with major or significant products requiring
external peer  review.  The Agency's Peer Review Handbook (2nd Edition) codifies procedures
and guidance  for conducting peer review.
STRATEGIC OBJECTIVES AND FY 2005 ANNUAL PERFORMANCE GOALS

Healthier Outdoor Air

•      The number of people living hi areas with monitored ambient ozone concentrations
below the NAAQS for the 1-hour ozone standard will increase by 4% (relative to 2004) for a
cumulative total of 53% (relative to 1992).
a      The number of people living in areas with monitored ambient PM concentrations below
the NAAQS for the PM-10 standard will increase by 1% (relative to 2004) for cumulative total
of 7% (relative to 1992).
a      Air toxics  emission nationwide from stationary and mobiles sources combined will be
reduced by an additional 1% of the updated  1993 baseline of 6.0 million tons for a cumulative
reduction of 38%.

Healthier Indoor Air

•      843,300 additional people will be living hi homes with healthier indoor air.
•      1,312,500 students, faculty and staff will experience unproved indoor air quality in their
schools.

Protect the Ozone Layer

•      Restrict domestic consumptioOn of class II HCFCs below 9,906 ODP-weighted metric
tons (ODP MTs) and restrict domestic exempted production and import of newly produced class
I CFCs and halons below 10,000 ODP MTs.

Reduce Greenhouse Gas Intensity

•      Greenhouse gas emissions will be  reduced from projected levels by approximately 90
MMTCE per year  through  EPA partnerships with  businesses, schools,  state and local
governments, and other organizations.

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Radiation

"      Certify that 40,000 55-gallon drums  of radioactive waste (containing approximately
120,000 curies) shipped by DOE to the Waste Isolation Pilot Plant are permanently disposed of
safely and according to EPA standards.

Enhance Science and Research

•      Transfer  hybrid  powertrain  components,  originally  developed  for  passenger  car
applications, to meet  size, performance, durability, and towing requirements of Sport Utility
Vehicle and urban delivery vehicle applications with an average efficiency improvement of 30%
over the baseline.
HIGHLIGHTS

Ensure Healthier Outdoor Air

       In FY 2005, EPA will significantly expand its efforts to reduce children's exposure to
diesel exhaust and the amount of air pollution created by diesel school buses through its Clean
School Bus USA program.  More than 24 million children in the US ride a bus to and from
school every day and research has found that these children can be exposed to high levels of
diesel exhaust.  The Agency's Clean School Bus USA program is designed to help reduce this
exposure by providing grant funds to  State, tribal, or local government entities to upgrade (or
"retrofit") newer school buses with better  emission control technologies and/or fuel them with
cleaner fuels or to replace the oldest school buses in the fleet with new, less polluting buses.  In
FY 2005,  EPA will develop  a  grant solicitation process that  will  award these funds on a
competitive basis.

       In FY 2005, EPA will complete an assessment of how sources create Fine PM in the air
and, with along with mercury emissions, the effect on downwind areas.  This assessment will
support the Fine PM NAAQS implementation, the Interstate Air Quality Rule and the Utility
Mercury Reductions Rule.  This work will also support the President's legislative proposal on
Clear Skies. EPA will begin implementation efforts for both the Interstate Air Quality Rule and
the Utility Mercury Reductions Rule.

       The Agency will also  continue to work with states, Tribes  and local communities to
reduce exposure to air pollution through implementation of the National Ambient Air Quality
Standards.  We  will provide technical support to states in developing State Implementation Plans
to aid them in  considering the transport of pollution on a regional level hi their plans.  For
particulate  matter, EPA will be finalizing attainment designations while working with states and
local areas to develop control strategies to reduce  emissions.  For ozone, since designation will
be finalized in 2004, the Agency will be supporting SIP development efforts while working with
localities on innovative measures to provide early emission reductions.

       For the  HAPs, FY 2005 will be a critical year for implementing the national air toxics
strategy. The Agency will continue its transition from a technology-based to a risk-based control
program. The Agency is still required to set technology-based standards for area sources.

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       In FY 2005, EPA will, as required by the Clean Air Act, continue the extensive residual
risk  analyses  for  already  promulgated  maximum achievable control technology  (MACT)
standards to determine if additional standards are necessary to reduce the remaining risks from
these sources.  The Agency will continue to develop the state, local, and Tribal component of the
Air Toxics Program so that state, local, and Tribal agencies can address emission issues that are
of concern on a state-wide, area-wide, or community-wide basis. As part of this effort, EPA will
continue to support community assessment and risk  reduction projects. The EPA will release an
integrated final version of the national emission inventory (NEI) using data collected from 2002.
This integrated inventory will include air toxics emissions data for analyzing public health risks
from air toxics and strategies to reduce  them, and to manage the risks posed by air toxics
emission.  The Agency will continue to develop  the  national ambient air  toxic network to
improve characterization of both national and community air toxic levels. Also in FY 2005, we
will be promulgating the Utility Mercury Reductions Rule. This program may utilize a cap and
trade approach that would allow emissions trading in lieu of a MACT standard which  is less
flexible and more  costly.  (The proposed rule seeks comment on both the cap and trade and
MACT approaches.)

       In FY 2005, EPA will establish and implement Federal standards to require cleaner motor
vehicles, nonroad equipment, locomotives, marine engines, and fuels that are cost-effective and
technically feasible. The Agency will continue implementation of the Tier II and gasoline sulfur
standards.  The Agency will also continue work on the 2007 heavy-duty highway engine and
diesel  sulfur  requirements.    In addition,  EPA  is promulgating new standards and  fuel
requirements for nonroad diesel fuel that will take effect for new engines starting as early as
2008.

       In addition, EPA will continue to monitor industry compliance with vehicle, engine, and
fuel standards, and to proceed with advancements in vehicle emission control technologies.  The
type and amount of testing required at EPA's National Vehicle and Fuel Emissions Laboratory
continues to expand greatly to meet the much more stringent and complex regulations for cars,
heavy-duty diesel engines, and gasoline and diesel fuels.

Ensure Healthier Indoor Air

       In FY  2005, EPA will build on the success of its national "Indoor Air Quality (IAQ)
Tools for Schools" (TfS) program and expand implementation of this program to more schools.
Adoption of EPA's low-cost/no-cost guidelines for  proper operation and maintenance of school
facilities results in healthier indoor environments for all students and staff, but is of particular
help to children with asthma, lessening the degree to which they are exposed to indoor asthma
triggers.  By  increasing the number  of  schools where TfS indoor air quality guidelines are
adopted and implemented, healthier indoor air will be provided for over a million students, staff,
and faculty.

       EPA expects, as a result of Agency programs, that over three quarters of a million people
will  be living in healthier residential indoor environments hi FY 2005. Part of meeting this goal
includes expanding the Agency's successful education and outreach efforts to the public about
sound  indoor environmental management techniques with respect to asthma.  In addition, the
Agency will continue to focus on ways to  assist the health-care community to raise its awareness
of, and attention it pays to, indoor asthma triggers and their role in provoking asthma attacks in

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those with the disease. EPA, in conjunction with the Department of Health and Human Services
(HHS),  will continue to  seek opportunities to interact with managed care  organizations  and
health insurers to promote effective asthma care practices and to encourage greater emphasis on
avoidance of asthma triggers, as part of a comprehensive asthma treatment regimen.

Greenhouse Gases

      The  President's  greenhouse gas program  builds on the  accomplishment  of EPA's
voluntary climate programs.  EPA's voluntary climate change programs have made significant
progress to date. However, opportunities  remain to achieve further pollution reductions  and
energy bill savings from energy efficiency programs and greater use of cost-effective renewable
energy.  In the U.S., energy consumption causes more than 85 percent of the major air emissions
such as  NOX, SOa, and CC>2.  At the same  time, American families and businesses spend over
$600 billion each year on energy bills.

      In FY 2005, EPA will continue to build upon its successful partnership programs such as
ENERGY STAR, the clean energy programs, Climate Leaders, Smart Way Transport Partnership,
and  Best Workplaces for Commuters programs.   Under these innovative programs we will
expand our work with companies to encourage them to take  on  new voluntary commitments to
reduce greenhouse gas emissions.

Stratospheric Ozone

      To protect the earth's stratospheric ozone layer in accordance with the United States'
commitment  to the  Montreal  Protocol,  EPA  will continue to regulate ozone-depleting
compounds, foster the development and use of alternative chemicals  in  the U.S. and abroad,
inform the public about the dangers  of  overexposure to  UV radiation, and  use  pollution
prevention strategies to require  the recycling  of  ozone-depleting  substances (ODS)  and
hydrofluorocarbons.

Radiation

      In FY 2005, EPA will continue to protect people and  the environment from harmful and
avoidable exposure to radiation by oversight of radioactive waste disposal in the Waste Isolation
Pilot Plant, setting protective limits  on radioactive emissions, providing guidance and training to
other Federal and state agencies in preparing for domestic emergencies and other incidents that
may involve radiation, and develop  guidance  for cleaning  up radioactively-contaminated
Superfund  sites.  We will ensure  that  the Agency employs appropriate methods to manage
radioactive releases  and exposures.  These  include  health-risk site  assessments; risk modeling,
cleanup, and waste management activities; voluntary programs to minimize exposure to radiation
hi commercial products and industrial applications; national environmental radiation monitoring;
radiological emergency response;  and provision  of Federal  guidance  to  our international,
Federal, state, and local partners.

Enhance Science and Research

      The Tropospheric Ozone and Particulate Matter (PM) Research Programs will upgrade
methods and models to guide states in  the development of  State Implementation Plans (SIPs)

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used to achieve the NAAQS. In FY 2005, the Agency will release an upgraded version of the
Models-3 Community Multi-scale  Air Quality  (CMAQ) modeling system  with upgraded
mechanisms for speeding up the model run time. This will be an important tool for developing
state and tribal SIPs.  PM research will continue to strengthen the scientific basis for the periodic
review of the PM NAAQS, through work that includes epidemiological and exposure studies.
The PM  program will also develop tools and methods to characterize PM sources and health
effects that will move the Agency toward its objective of reducing Americans' exposure to PM.
Important products of the FY 2005 PM research program will include improved receptor models
and data  on chemical compounds to help identify sources  that contribute to ambient PM so that
states and tribes can develop more effective control strategies

       Air  toxics   research  provides  information  on effects,  exposure,  and  source
characterization, as  well as other  data to quantify existing  emissions  and to identify key
pollutants and strategies for cost-effective risk management. In FY 2005, research will focus on
providing health hazard and exposure methods, data, and models to enable the Agency to reduce
uncertainty in risk assessments, and the production of tools that enable national, regional, state,
or local  officials to  identify and implement cost-effective approaches  to reduce risks from
sources of air toxics.
EXTERNAL FACTORS

Stakeholder participation:  To achieve clean air, EPA relies on the cooperation of Federal,
state, Tribal, and local government agencies; industry; non-profit organizations; and individuals.
Success is far from guaranteed, even with the full participation of all stakeholders.  EPA has
significant work to accomplish just to reach the annual targets that lead to the longer-term health
and  environmental  outcomes and improvements that are articulated in  the Clean Air goal.
Meeting the Clean Air goal necessitates a strong partnership among all the stakeholders, but in
particular among the states, Tribes, and  EPA;  the  Environmental Council  of States;  and
organizations of state and local air pollution control officials.  EPA will be working with various
stakeholders to encourage new ways to meet the challenges of "cross regional" issues as  well as
to integrate programs to address airborne pollutants more efficiently.

Environmental  factors:   In developing  clean air  strategies,  states, Tribes, and local
governments assume normal meteorological patterns. As EPA develops standards and programs
to achieve the Clean Air goal, it has  to consider weather as a variable in the  equation for
implementing  standards  and  meeting   program goals.    For  example,  even  if an area is
implementing a number of air pollution control programs under normal meteorological patterns,
a hot humid summer may cause an area to exceed standards for days at a time, thereby exposing
the public to unhealthy air.
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                        Clean Air and Global Climate Change

OBJECTIVE: Healthier Outdoor Air

      Through 2010, EPA and its partners will protect human health and the environment by
attaining and maintaining health-based air quality standards and reducing the risk from toxic air
pollutants.

                                Resource Summary
                               (Dollars in Thousands)

Healthier Outdoor Air
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Building and Facilities
Inspector General
Total Workyears
FY2003
Actuals
$557,907.1
$231,825.3
$75,701.8
$243,116.5
$4,583.4
$2,680.1
1,706.6
FY2004
Pres. Bud.
$579,059.2
$250,509.5
$81,059.9
$239,600.0
$4,645.2
$3,244.6
1,751.5
FY2005
Pres. Bud.
$659,876.2
$261,196.7
$85,302.2
$304,600.0
$5003.2
$3,774.1
1,765.9
FY 2005 Req. v.
FY 2004 Pres Bud
$80,817.1
$10,687.3
$4,242.3
$65,000.0
$358.0
$529.5
14.4
                                 Program Project
                               (Dollars in Thousands)

Clean School Bus
Categorical Grant: State and Local Air Quality
Management
Children and other Sensitive Populations
Categorical GrantTribal Air Quality
Management
Clean Air Allowance Trading Programs
Congressionally Mandated Projects
Federal Stationary Source Regulations
Federal Support for Air Quality Management
Federal Support for Air Toxics Program
Federal Vehicle and Fuels Standards and
Certification
International Capacity Building
Homeland Security: Critical Infrastructure
Protection
Administrative Projects
TOTAL
FY2003
Actuals
$0.0
$229,633.4
$50.6
$13,483.1
$15,667.4
$12,724.8
$19,120.1
$92,966.1
$28,116.6
$55,525.5
$3,570.0
$0.0
$87,049.5
$557,907.1
FY 2004
Pres. Bud.
$1,500.0
$228,550.0
$235.0
$11,050.0
$21,814.9
$0.0
$23,702.2
$96,657.4
$28,655.1
$60,446.8
$1,541.3
$1,106.2
$103,800.3
$579,059.2
FY 2005
Pres. Bud.
$65,000.0
$228,550.0
$127.0
$11,050.0
$22,857.5
$0.0
$24,302.0
$102,849.9
$27,358.7
$64,466.5
$1,633.9
$1,110.8
$110,569.9
$659,876.2
FY 2005 Req. v.
FY 2004 Pres Bud
$63,500.0
$0.0
($108.0)
$0.0
$1,042.6
$0.0
$599.8
$6,192.5
($1,296.4)
$4,019.7
$92.6
$4.6
$6,f69.7
$80,817.1
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FY 2005 REQUEST

       EPA's strategy for achieving clean outdoor air includes a comprehensive, multi-pollutant
approach that combines national and local measures, with implementation responsibilities carried
out by the most appropriate and effective level of government. Problems with broad national or
global impact  - emissions from power generators, petroleum refineries, chemical plants, and
other large sources, as well as pollution from motor vehicles and fuels - are best handled at the
Federal level.   States, Tribes,  and local agencies can best address the regional and  local air
quality problems that remain after Federal measures have been fully applied.  This approach
allows for the use of traditional, regulatory tools, where appropriate,  and enables EPA to
implement innovative, market-based techniques - such as President Bush's Clear Skies Initiative
or the suite of integrated air rules proposed in December 2003 -  where most effective.  These
Federal programs help states and Tribes both meet National Ambient Air Quality Standards
(NAAQS) and reduce public exposure to harmful levels of air toxics.

       Under the Act, EPA has established NAAQS for six "criteria" pollutants:  particulate
matter (PM), ozone, sulfur dioxide (SOa), nitrogen  dioxide (NOa), carbon monoxide (CO), and
lead.  The Act also lists 188 pollutants that are categorized as Hazardous Air Pollutants (HAPs)
or air toxics. Finally, EPA has established the Acid Rain Program required by the Act to reduce
emissions of SO2 and nitrogen  oxides (NOx), that adversely affect the health of Americans and
of our ecosystems.

       The Clean  Air Act requires  states to develop State Implementation Plans (SIPs) to
implement the six NAAQS. The Act authorizes Tribes to develop similar clean air plans.  Also,
the Act provides a framework  for addressing  air toxics at the local level.  EPA works closely
with  public and  private sector partners and stakeholders  to  develop the tools -  such as
monitoring, modeling, and emission inventories - that allow States, Tribes, and localities design
programs to address local problems.  States, Tribes,  and localities may employ innovative
approaches, such as diesel retrofits and community-based approaches for air toxics that are well
suited to the local nature of these problems.  EPA also provides capacity building training and
support hi order for its international partners to address air quality issues.

       EPA implements the Healthier Outdoor Air Objective through eight Program/Projects.
Three of the Program/Projects include primarily Federal measures:

1.  Federal Stationary Source Regulations;
2.  Clean Air Allowance Trading Programs; and
3.  Federal Vehicle and Fuels Standards and Certification.

       The other five Program/Projects primarily support, state, Tribal, and local efforts to meet
NAAQS requirements and reduce public exposure to harmful levels of air toxics. These include:

4.  Federal Support for Air Quality Management;
5.  Federal Support for Air Toxics Programs;
6.  Clean School Bus Initiative;
7.  Categorical Grant: State and Local Air Quality Management; and
8.  Categorical Grant: Tribal Air Quality Management.

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Results to be Achieved under this Objective

       Implementation of this objective will result in cleaner air for Americans. By 2010, the
reductions in  the levels  of fine particles and ozone from Clear Skies and other air pollution
control programs are projected to result in 7,900 fewer  premature deaths and $55 billion in
annual health  and visibility benefits nationwide each year. New diesel truck and bus standards
will reduce the level of sulfur in highway diesel fuel by 97 percent by 2006.  Beginning in 2007,
each new truck and bus  will be more than 90 percent cleaner than current models, resulting in
annual emission reductions of 2.6 million tons of NOx and 109,000 tons of PM by 2030.11  The
non-road program will provide annual emission reductions of 825,000 tons of NOx and 125,000
tons of PM when fully implemented.12

       Implementation of EPA's international programs will lead to an increase in the number of
air quality management strategies established in key countries and regions  and an increase in the
amount and quality of information and technical capacity  available for decision-makers.  These
strategies,  information,  and capacity will provide the necessary  institutional  framework for
reductions of industrial and  mobile source  air  pollution  in key countries and regions,
harmonization with U.S.  standards, and reductions in long-range transport to the U.S.

Federal Stationary Source Regulations

       Under the Clean Air Act, EPA is responsible for setting,  reviewing, and revising the
NAAQS,  as well as for setting emission standards for sources of air toxics.  These national
standards form the foundation for air quality management and air toxics programs implemented
at the national, state, local and tribal levels, and establish goals that protect public health and the
environment.

       NAAQS Review: EPA is responsible for periodic  review and  revision, when necessary,
of the NAAQS for the six "criteria" pollutants:  PM, ozone, SO2, NO2, CO, and lead. Currently,
EPA is reviewing the following NAAQS:

       PM. Review of the PM NAAQS is well underway. EPA is currently developing drafts
       of the Staff Paper and health risk assessment and will complete them in FY 2004.  In FY
       2005,  the Agency will propose whether to  retain or revise the  NAASQS for  fine
       particulates (PM2.s), and in FY 2006 will make a final decision.

       Ozone. In FY 2004, EPA will carry out the exposure analysis and health risk assessment
       for the ozone NAAQS, in conjunction with development of the Staff Paper. The Agency
       will complete final work in FY 2005 and propose to retain or revise the ozone NAAQS in
       FY 2006. EPA will make a final decision on the standard by the court-ordered deadline
       of December 15, 2006.
11 U.S. Environmental Protection Agency, Office of Air and Radiation. December 2000. Regulatory Announcement: Heavy-
Duty Engine and Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements. EPA420F-00-057. Washington,
DC:GPA. Available online at http.vVwww.epa.gov/otaq/regs/hd2007/fhii/fi)0057.pdf. Date of Access: December 2, 2003.
12 U.S. Environmental Protection Agency, Office of Air and Radiation. April 2003. Regulatory Announcement: Public Health
and Environmental Benefits of EPA 's Proposed Program for Low-Emission Nonroad Diesel Engines and Fuel. EPA420-F-03-
010. Washington, DC: GPO. Available online at http://wuw.epa.gov/nonroad'ffl3010.pdf. Date of Access: December 2, 2003.

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       CO. EPA is currently reviewing the NAAQS for CO and has completed the CO Criteria
       Document.  The Agency anticipates continuing work on the Staff Paper in FY 2004.
       After taking into account CASAC  review and public comment,  EPA will  propose a
       decision or whether to retain or revise the standards.

       Air Toxics: Air toxics or HAPs may have a number of health and environmental impacts
when hi the air or deposited on soils or surface waters.  People exposed to certain toxic  air
pollutants at sufficient concentrations and for sufficient periods of time are at increased risk of
cancer or other serious health effects. These health effects may include damage to the immune
system, neurological system, reproductive system (e.g., reduced fertility), and/or developmental
and/or respiratory problems. Numerous studies also conclude that air toxics contribute to birth
defects, reproductive failure, and disease hi animals,  as well as humans.  Persistent toxic  air
pollutants are of particular concern hi aquatic ecosystems where pollutants may accumulate hi
sediments and biomagnify in tissues of animals  at the top of the food chain to concentrations
many times higher than in the water or air.

       The Clean Air Act includes a  variety of provisions that address air toxics from  all
categories of sources.  The 188 HAPs listed in the Act are emitted from mobile sources, major
stationary sources, and  area stationary sources.13  EPA  also  has classified diesel particulate
matter and diesel exhaust organic gases as air toxics. Title II of the Act requires EPA to develop
standards to control HAPs from motor vehicles and vehicle fuels. Title III provides authority to
regulate HAPs from stationary sources. A major source is defined as a stationary sources or a
group  of stationary sources  located within  a contiguous area and under common control that
emits or has the potential to emit considering controls, in the aggregate, 10 tons per year or more
of any HAP or 25 tons per year or more of any combination of HAPs.  An area source is defined
as any stationary source of HAPs that is not a major source.

       EPA's Air Toxics program has five elements:
       1.     Developing source-specific and sector-based Federal standards;
       2.     Carrying  out  national, regional, and community-based programs that focus  on
             multi-media and cumulative risks;
       3.     Using actual, measured, and modeled data to set priorities and guide programs;
       4.     Filling toxicity data gaps; and
       5.     Providing public education and outreach.

       Priorities for the Air Toxics program include:
       •     Implementing a residual risk program to address  risks  at facilities post-MACT
             standards; working to reduce toxics from mobile sources;
       •     Developing generally-available,  control  technology-based  standards  for  the
             highest priority area source categories; and
       %     Working with stakeholders to identify and address the risk reductions that matter
             most to local citizens, and developing tools, taming, handbooks, and websites to
             provide information on how to assess risks, convene multi-stakeholder groups to
             make local decisions, and steps to go through to reduce risks.
13 http://www.epa.gov/ttn/atw/pollsour.html
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       EPA implements a two-phase program to reduce emissions of air toxics from major
stationary sources. In the first phase, which is technology-based, EPA set Maximum Achievable
Control Technology (MACT) standards for approximately 180 source categories emitting one or
more of the  188 HAPs listed in the Act.   MACT standards create a level playing field by
requiring all major sources to achieve the level of control already being achieved by the better
performing sources  in  each category.  Although  MACT standards are  primarily for major
sources, they also may  address important area  source categories, such as chrome electroplaters
and secondary lead smelters that emit some of the most toxic pollutants.

       When fully implemented, the MACT rules, in  combination with efforts by states and
industry, will decrease toxic emissions from large industrial facilities by 1.7 million tons per year
or 63 percent from 1990-1993 baseline levels.14  As of September 1, 2003, EPA had issued 92
standards for 168 source categories.  The Agency plans to'issue another four standards for six
source categories by February 2004.

       In the second phase, which is risk-based, EPA examines each MACT standard eight years
after promulgation to determine if the health  risk remaining from each industrial category is
considered safe.  EPA will develop more stringent residual risk standards,  when appropriate, to
reduce cancer and non-cancer health risks.

       In FY 2005,  EPA will continue residual risk analyses for already  promulgated MACT
standards to determine if additional, tighter standards are necessary to reduce the remaining
health risks from these sources.  EPA is  working to develop  the significant amounts  of
information (e.g., emissions, source characterization, exposures) required to determine whether
additional standards are needed.  EPA also is  developing an approach so that only those facilities
within a source category that pose risks at a level of concern will have to comply with these
standards.   Guidance  is being  developed  so facilities can perform  facility-by-facility risk
analyses to determine whether they have low  risks and are, therefore, already in compliance with
the standards.

       EPA also must  set technology-based standards for  select area sources.   Area source
categories currently  constitute  approximately  55  percent of  the  air   toxics  emissions.15
Projections that include consideration  of standards in  place show that area  source categories
constitute a significant proportion of unaddressed emissions.  Area sources are an important
source because they frequently occur  in clusters in congested areas with high populations. EPA
is evaluating these sources and has  started work  on those with the greatest emissions  and
toxicity.  As of September  1, 2003 the Agency has listed 70 area source categories that were
required to be  finalized in  2000.   Standards for  14 of these source categories have been
completed. EPA is negotiating promulgation dates for the remaining 56 source categories as part
of settlement discussions.

       In addition to these  standards, EPA determined in December 2000 that regulation was
necessary and  appropriate for coal-fired and  oil-fired electric utility steam generating units.
14 The EMS-HAP (Emissions Modeling System for Hazardous Air Pollutants) is used to estimate annual emissions of air toxics
for the 1996 NTI and 1999 NEI for HAPS (and for all years in-between),  http://www.epa.gov/scram001/tt22.htmtfaspen
http://www.epa.gov/ttn/chief/emch/proiection/emshap.html http://www.epa.gov/ttn/chief/emch/proiection/emshap.html
15 National Emission Inventory Data, http://www.epa.gov/ttn/chief/net/index.html

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According to an existing settlement agreement, these regulations were proposed in December
200316 with  scheduled promulgation in December 2004, and  will  bring  these  units into
compliance by December 2007. The Utility Mercury Reduction Rule includes provisions for a
cap and trade approach, consistent with the President's Clear Skies proposal, that would allow
emissions trading in lieu of "maximum achievable control technology" (MACT).  The proposed
rule seeks comment on the two approaches for reducing the mercury emitted by coal-fired power
plants.

Clean Air Allowance Trading Programs

       EPA's  strategy for achieving clean air includes a series of innovative market-based
programs: the Clear Skies Initiative proposed by President Bush, the Interstate Air Quality Rule
and Mercury Reduction Rule  proposed by EPA in December 2003,  the Acid Rain Program
established by the 1990 amendments to the Clean Air Act,  and the NOX Budget Programs
developed under the NOX SIP Call (which, as of March, 2003 incorporates the initial NOX Budget
Program under the Northeast Ozone Transport  Commission).   The  Acid Rani Program is
designed to reduce SC>2 and NOX emissions; the NOx Budget Programs address the interstate
transport of ozone and NOX.  EPA will continue to implement the two established market-based
programs while awaiting passage of Clear Skies legislation or promulgation of the Interstate Air
Quality Rule and the Mercury Reduction Rule.

       Clear Skies: The legislation proposed under the Clear Skies Act will take the best of
what  we have learned  and  modernize the existing  Clean Air Act.   Using  a market-based
approach, the Clear Skies Act will dramatically cut power plant emissions of three of the worst
air pollutants - SOa, NOX, and mercury (Hg). Emissions of SC>2 and NOX result in airborne fine
particles (PM^s); reductions in emissions of these pollutants will reduce PM2.5.  EPA's approach
builds upon the success of the Acid Rain cap-and-trade program created in 1990.  The Acid Rain
Program has reduced more pollution in the last decade than any of the Clean Air Act command-
and-control programs for stationary sources and achieved these reductions at 25 percent of the
projected costs at the inception of the program.

       The Clear Skies Act, as proposed, will achieve substantially greater reductions in air
pollution from the  power sector more quickly and with more certainty than the existing Clean
Air Act. The Initiative requires mandatory cuts  of SOa, NOX, and Hg by an average of 70
percent from year 2000 levels and ensures that these levels are achieved and sustained through
caps on emissions.  The alternative approach, based on the proposed Interstate Air Quality Rule
and the  Utility Mercury Reduction Rule,  would also achieve  significant reductions  in air
pollution from the power sector, absent new legislative authority.

       The types of actions that the Agency would need to take for implementation of either the
Clear Skies Act or the rules proposed in December 2003 include:

       (1)     Prepare the data and tools for completing the rules and/or implementing the Act.
       Design a cap-and-trade program, promulgate rules, and develop implementing tools and
       mechanisms.
16 http://www.epa.gov/mercury/actions.htm
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       (2)     Support the rules with  technical and  economic  analyses.  Determine control
       technology options and investigate the regulatory impacts on the U.S.  economy, the
       environment, small business, and local communities.

       (3)     Develop baselines and prepare to assess program benefits.  Establish an integrated
       assessment program to include enhanced ambient and deposition monitoring and develop
       a baseline prior to implementation of the program.

       (4)     Ensure the program's credibility and results. Successful trading programs require
       accurate  and consistent monitoring of emissions  from affected sources.   Investigate
       monitoring alternatives (particularly as they relate to mercury), propose performance
       specifications, and develop mercury monitoring protocols.

       (5)     Maximize  flexibility  for  affected  sources.  Allow for  optimum  trading of
       emissions by building on existing Acid Rain electronic allowance trading and emissions
       reporting systems.

       (6)     Develop  the operating  infrastructure.   Operation  of this  program  will be
       dependent upon E-Gov infrastructure  that must be  developed.  The data collection
       requirements must be determined  and  operating software and hardware specifications
       developed.  Initial software development should also begin.

       EPA projects that enactment and implementation of the Clear Skies Act, hi combination
with existing programs, will bring 246 of the counties currently not hi attainment with the 8-hour
ozone  standard into compliance with the  standard by 2010,  leaving 44 counties predicted to
monitor violation of this  standard.   For PMa.s, preliminary 1999-2001  data  indicate  that 129
counties monitor violation of this  standard (are not in attainment).  Under Clear Skies, in
combination with existing programs, 87 of these counties are  expected to attain the standard by
2010.  By 2020, three additional counties are projected to come into attainment with the 8-hour
ozone standard and 35 additional counties  are projected to come  into attainment with the PlV^.s
standard. Furthermore, emissions caps  instituted over a period of tune under Clear Skies (or the
integrated Interstate Air Quality Rule) allow for flexible and cost-effective compliance with far
greater certainty of achieving the anticipated environmental results. These integrated interstate
air quality  programs would eliminate costly source-by-source regulation and will most likely
reduce the  incidence  of costly litigation, inspection, and enforcement actions while achieving
results with compliance rates similar to those of the  Acid Rain Program, which has  emission
reduction compliance rates of nearly 100 percent.

       EPA projects benefits to human health could approach $110 billion annually by 2020,
due primarily to avoided premature deaths.  In addition, emission reductions resulting from Clear
Skies will help to significantly address several other of our nation's major air pollution-related
environmental problems caused by PMi.5, ozone, acid rain, nitrogen deposition, and  visibility
impairment. Visibility benefits in select national parks and wilderness areas are projected to be
approximately $3 billion annually.  Clear Skies offers the opportunity to significantly reduce the
expected collective cost to the  state and Federal environmental agencies .of developing and
implementing  programs to address PMa.s and  regional haze issues, not  to mention the cost of
regulated entities under the current Clean Air Act programs.
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       Acid Rain Program: Emissions of SOi, mostly from electric power generation and other
industrial sources, and NOX, mostly from electric power generation sources and motor vehicles,
react in the atmosphere and fall to earth as acid deposition  or "acid rain."  Acid rain causes
acidification of soils, lakes, and streams,  making the water unsuitable for some fish and other
wildlife and contributing to the damage of trees at high elevations.  Acid rain also speeds the
decay of buildings, statues, and sculptures  that are part of our national heritage.  Before falling to
earth, SC^ and NOX gases form fine particles that adversely affect human health by contributing
to premature deaths, chronic bronchitis, and other respiratory problems. The fine particles also
contribute to reduced visibility and impair some of our most scenic vistas at national parks. Acid
rain and its precursor SOa and NOX emissions are carried by the wind, sometimes hundreds of
miles, across state and national borders.  NOX emissions also are a  major precursor of ozone,
which  contribute to asthma and  other respiratory illnesses  and damages crops, forests, and
materials.  NOX deposition also contributes to eutrophication of coastal waters, such as the
Chesapeake Bay and Tampa Bay.
                                            Title IV
                               Utility SO2 and NOX Emissions Reductions
                  Emissions (million tons)
                      20-

                      15-

                      10-

                       5-
J7.5
                                             18.7
                       0
                        1980   1985  1990  1995   2000   2005  2010
                                             Year

       Source: U.S. EPA. Office of the Chief Financial Officer. EPA Strategic Plan. EPA-190-R-00-002. page
       4. September 2000.

       The Acid Rain Program, authorized under Title IV of the Clean Air Act Amendments of
1990, has numerous statutory  deadlines.  Title II of the Clean  Air Act Amendments requires
reductions in NOX emissions from mobile sources.  The U.S. also is committed to reductions in
SC<2 and NOX emissions under the U.S.-Canada Air Quality Agreement of 1991. EPA's Acid
Rain Program uses market-based approaches to achieve these emission reductions. The Program
provides affected sources with  flexibility to meet required emission reductions at the lowest cost
(both to industry and government).   The  SOi  component  features tradable units called
"allowances" (one allowance authorizes the emission of one ton of SOa), accurate and verifiable
measurements of emissions, and a cap on total emissions.  The Acid Rain Program continues to
be recognized as a model for flexible and effective regulation, both in the U.S. and abroad.

       Major Acid Rain Program  activities include:  measurement, quality  assurance, and
tracking of SOi, NOX,  and COa  emissions,  as recorded by  Continuous Emissions Monitors
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(CEMs) or equivalent continuous monitoring methods at more than 3,000 reporting electric
utility units; conducting field audits and certifying emissions monitors; recording transfers of
emission allowances  in the  SOi allowance tracking system; and reconciling emissions and
allowances for all affected sources to ensure compliance.

       The Acid Rain Program developed through two phases. Phase I of the Program began in
1995 requiring SOa reductions  from approximately 400 electric  utility units.   Phase I also
required approximately 250 of these units to make NOX reductions beginning hi 1996. Phase II
of the Program began in 2000 and required reductions in SOa emissions from more than 2,500
operating electric utility units (gas-fired, oil-fired, and coal-fired) and reductions in year-round
NOX emissions from approximately 1,000 coal-fired units.  In addition, the number of affected
sources is increasing steadily as new capacity is  built into  the system to meet the Nation's
expanding energy demands.  Since  2000, approximately 700  new operating sources have been
added to the system, an increase of over 20 percent (many are peaking, not full-time load, units).

       This growth has resulted in a steady increase in the number of units affected  by the
trading program and  a significant increase in emissions tracking,  SOa allowance trading, and
account reconciliation activities conducted by EPA each year.  To manage this workload, lower
operating costs, and improve  customer service, the  Program has incorporated selected e-Gov IT
practices compatible with the responsibility of administering the Allowance Tracking System
(ATS) and the Emissions Tracking System (ETS).  In 1999, the Program required direct modem
or Internet transfer of emissions data.  The  ETS provides instant feedback to submitters
identifying data reporting problems, format errors, and inconsistencies, so they can understand
and correct problems promptly. In 2001, 4,900 allowance transfers  that affected over 22 million
SC>2 allowances were recorded in the ATS, the accounting system developed to track holdings of
allowances.  EPA launched the On-Line Allowance Transfer System (OATS) in December 2001.
This timesaving electronic system enables allowance market participants to record trades directly
on the Internet, rather than submitting paper forms.  Approximately 90 percent of all allowance
transfers are now completed on-line.
                                      Allowance Trading
                                      1994 1995 1996 1997 1998 1999 2000 2001

                                       9 Between Economically Related Organizations
                                       * Between Economically Distinct Organizations
       Source: U.S. EPA. Office of Air and Radiation. Clean Air Markets Program. EPA Acid Rain Program
       2001 Progress Report. EPA-430-R-02-009. page 13. November 2002
                                          1-22

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       In addition to these operational activities, the Acid Rain  Program is responsible for
managing the Clean Air Status and Trends Network (CASTNet), a dry deposition monitoring
network, as well as for providing critical operational support for the  National Atmospheric
Deposition Program (NADP),  a wet deposition monitoring network.  These monitoring efforts
play a crucial role hi the Program's ongoing assessment activities, including reporting outcomes
under the Program Assessment Rating Tool (PART) and the Government Performance and
Results Act (GPRA), and fulfilling assessment responsibilities under the US-Canada Air Quality
Agreement and Title IX of the Clean Air Act.  In addition, the Program provides analytical
support for the interagency National Acid Precipitation Assessment Program (NAPAP).  NAPAP
coordinates Federal acid deposition research and monitoring of emissions, acidic deposition, and
then: effects, including  assessing the costs and benefits of Title IV.  In 2005, the Acid Rain
Program will continue analyzing the costs and benefits of the Program for inclusion in NAPAP's
Integrated Assessment Report.

       EPA estimates that, when fully implemented in 2010,  the  SOa reductions alone under
Title IV will provide $50 billion (1997 dollars) in health benefits (mostly from an estimated
reduction in premature mortality of 9,000 cases per year) and $1 billion hi additional benefits due
to unproved visibility from an  expected 30 percent improvement in visibility at national parks hi
the eastern US.17  The  Acid Rain Program also  will produce significant benefits in terms of
lowered  surface  water  acidity and  less damage to materials  and  high-elevation forests.
Nevertheless, after  full  implementation of the  current program, significant residual risks will
remain to human health, ecological  systems,  and quality of life.  Thus, Clear Skies (or the
alternative approach  under the Interstate Air Quality Rule, proposed hi December 2003)  is
needed to address this deficiency as well as issues related to visibility impairment and attainment
of the NAAQS for fine particles and ozone.

       A report,  Response of Surface Water Chemistry to the Clean Air Act Amendments of
1990, released hi January 2003 by EPA's Office of Research and Development (ORD) concludes
that measurable improvements in surface water  chemistry  (lower sulfate concentrations and
decreases hi acidity)  have resulted from reductions hi emissions and in wet sulfate deposition
under  the  Acid  Rain Program.   EPA with  collaborators  (researchers at  universities, U.S.
Geological Survey, and  other organizations) conducted this assessment to determine if there have
been reductions in the level of acidity hi lakes and streams  in five geographic areas of the Upper
Midwest and Northeastern US - those areas most affected by acid rain.  Study results indicate
that hi three of the five areas,  one-quarter to one-third of lakes and streams previously affected
by acid rain are no longer acidic, although they are still  highly sensitive to future changes hi
deposition.  In  other areas,  signs  of recovery are not  yet evident,  suggesting  that further
reductions such as those proposed in the Clear Skies Act will  further assist in ecosystem
recovery.
          y Budget Program: At the request of participating states, EPA will continue to operate
the NOX emission reduction and multistate trading program for controlling transported ozone and
NOX hi the eastern United States.  The initial NOX Budget Program under the Ozone Transport
Commission (OTC) went into effect hi the summer of 1999. During the 2001 ozone season, nine
states plus the District of Columbia were participating in this voluntary regional control program
 17 U.S. Environmental Protection Agency (EPA). The Benefits and Costs of the Clean Air Act 1990-2010: EPA Report to
 Congress. EPA: Washington, DC. November 1999.

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for the ozone transport region (OTR). NOX emissions from approximately 970 affected sources
were reduced by over 250,000 tons (60 percent) from the 1990 baseline and 12 percent below the
2001  allowance allocations. Approximately the same  reduction was maintained for the 2002
ozone season with emissions 11% below the 2002 allowance allocations.  In March 2003, the
OTC NOX Budget Program ended as a separate entity, integrating fully with the broader regional
NOX Budget Program under the NOX SIP Call.

       Implementation of the NOX SIP Call rule began in 2003 for the OTR states and will begin
in 2004 for other states. Emissions data for affected sources in these states (with one exception)
will be reported to the ETS beginning with the second quarter 2003.  Approximately 1,000
sources (400  sources  that  have not  reported previously) will  begin submitting electronic
emissions and monitor certification data.  In 2004, the  initial compliance year for the NOX SIP
Call, up to 2000 units in as many as 20 states and D.C. will be reporting seasonal NOX data to
ETS.
                             NOX Emissions (OTR- Ozone Season)
                                               193     19S
     Source:U.S. EPA. Office of Air and Radiation. Clean Air Markets Program with Ozone Transport Commission.
     NOX Budget Program 1999-2002 Progress Report. EPA-430-R-03-900. March 2003.
       EPA will continue  to assist the states with implementation, especially related to the
emissions trading program, compliance supplement pool, and monitoring.  Following the  2003
and 2004 ozone seasons, EPA will conduct an  analysis to assess and determine the actual
emission  reductions achieved.    Initial compliance emission reductions from this  regional
program are required to begin hi the summer ozone season of 2004.  NOX emission reductions
from this program are projected to be approximately 800,000 tons per season.

Federal Vehicle and Fuel Standards and Certification

       Despite great progress in achieving cleaner, healthier air, air pollution continues to be a
widespread human health and environmental problem hi the U.S., and mobile sources continue to
be major contributors to outdoor air pollution. Over the past 30 years, EPA's national standards
for vehicles, engines, and fuels have made major advances in reducing mobile source emissions.
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However, continued increases in vehicle miles traveled have offset some of these advances, and
additional work in a variety of areas is needed to provide further environmental benefits. In
addition, EPA needs to focus on the implementation of recently promulgated programs to protect
the environmental and health benefits expected hi the future.  Thus, much work remains to be
done hi FY 2005 to ensure the successful implementation of regulatory programs designed to
address remaining mobile sources that contribute significantly to air pollution.

       In the last  few years, EPA  has established  important regulatory programs that  will
significantly reduce emissions from  highway and non-road sources.  It is critical for EPA to
continue supporting the implementation activities of important environmental programs,  such as
the Tier II program, the 2007 Heavy-Duty (HD) standards, and the Non-road Diesel standards, hi
order to ensure the successful delivery of cleaner vehicles/equipment and cleaner fuel.

       The Agency promulgated the Tier II program for Light-Duty Vehicles (LDVs)  and Light-
Duty Trucks (LDTs) hi 2000.  This program established new tailpipe standards for all passenger
vehicles  and new limits for sulfur in gasoline reducing, NOX emissions by 74 percent (i.e., 2
million tons per year by 2020 and nearly 3 million tons per year by 2030).  The new tailpipe
standards will begin hi 2004, with  a  phase-in schedule between  2004 and 2007.   The new
gasoline sulfur requirements will also begin in 2004. The Tier II Program also will require a new
corporate average for refineries, which is being introduced between 2005 and 2007.18

       In 2001, the Agency promulgated new engine standards and diesel fuel requirements to
significantly reduce emissions for  highway HD trucks and buses.  The new vehicle  standards,
beginning hi 2007, will require that the level of sulfur in highway diesel fuel  be reduced by 97
percent by 2006.  As  a result of this program, each  new truck and bus will be more than 90
percent cleaner than current models,  resulting hi annual emission reductions of 2.6 million tons
of NOX and 109,000 tons of PM by 2030.19  Thus, the Agency will be actively working on the
implementation of this program hi FY 2005.  This work includes continued assessment of the
development of clean engine and fuel technologies to evaluate progress toward implementation
of the program.

       For non-road diesel engines (i.e., those used hi construction, agricultural, and industrial
equipment), EPA is promulgating new standards and new fuel requirements for non-road diesel
fuel in 2004. The new regulation will take effect for new engines starting as early as  2008.  For
the first  time ever, advanced  emission control  systems will be  incorporated into non-road
equipment.  In addition, the sulfur content of non-road diesel fuel  will be significantly phased
down from the current uncontrolled level of 3,400 ppm to 500 ppm beginning hi 2007, and then
to 15 ppm hi 2010 - a 99 percent reduction.20  These drastic  changes hi non-road engines and
diesel  fuel  will require  close  scrutiny  by  the Agency to ensure  a smooth transition  into
18 U.S. Environmental Protection Agency, Office of Air and Radiation. December 1999. Regulatory Announcement: EPA's
Program for Cleaner Vehicles and Cleaner Gasoline. EPA420-F-99-051. Washington, DC: GPO. Available online at
http:/.''wwvv.epa.gov/otaq/regs/ld-hw>'/tier-2.;fmv'f99051 .pdf. Date of Access: December 2, 2003.
19 U.S. Environmental Protection Agency, Office of Air and Radiation. December 2000. Regulatory Announcement: Heavy-
Duty Engine and Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements. EPA420-F-00-057. Washington,
DC: GPO. Available online at http:/Avww.epa.gov/otaq/regs'hd2007/fim/fD0057.pdf.  Date of Access: December 2, 2003.
20 U.S. Environmental Protection Agency, Office of Air and Radiation. April 2003. Regulatory Announcement: Summary of
EPA's Proposed Program for Low Emission Nonroad Diesel Engines and Fuel. EPA420-F-03-008. Washington, DC: GPO.
Available online at http://www.epa.gov/nonroad/fD3008.pdf. Date of Access: December 2, 2003.

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compliance. This important program will provide annual emission reductions of 825,000 tons of
NOX and 125,000 tons of PM, when fully implemented.21

       The  successful implementation  of the programs  described above will ensure that air
quality improvements and environmental and health benefits are accrued. EPA calculates that by
2030, compliance with the Tier II rule will prevent as many as 4,300 deaths, more than 10,000
cases of chronic and acute bronchitis, and tens of thousands of respiratory problems a year.22
The emission reductions resulting from the 2007 Highway Heavy-Duty Engine Regulations will
prevent  as many as 8,300 premature deaths, more than 9,500 hospitalizations, and 1.5  million
workdays lost.23  The new Non-road Diesel program will prevent over 9,600 premature deaths,
8,300  hospitalizations,  16,000 heart attacks,  14,000  acute  bronchitis  attacks  and 260,000
respiratory problems in children, and nearly a million workdays lost due to illness.24

       In FY  2005,  EPA  also will continue implementing other  important mobile source
programs addressing  ozone and PM.   For  example, the phase-in of emission  standards for
locomotives, which will result in  more than 60  percent reduction in NOX and  more than 40
percent  reduction in PM,  began in 2000.25  More stringent standards  on locomotives will take
effect in 2005.  In FY 2002,  EPA finalized regulations addressing emissions from a range of
unregulated non-road sources, including  industrial  gasoline  engines  (e.g.,   forklifts  and
generators), recreational vehicles  (e.g.,  snowmobiles), and recreational marine diesel engines.
The new standards are expected to reduce hydrocarbon (HC) and NOX emissions by nearly 80
percent when fully implemented.26  The  standards for industrial engines will begin to phase-in in
2004, while the standards for recreational vehicles and marine engines will begin in 2006.

       In FY  2005,  EPA  will continue  implementing  the Phase II standards for gasoline
handheld engines (e.g., trimmers, brush  cutters, and chainsaws). The phase-in schedule of these
new standards began with the 2002 model year, with more stringent  standards coming into effect
in 2005. This program will reduce HC and NOX emissions by 70  percent, resulting in annual
reductions of 500,000 tons of HC and NOX by 2027.27
21 U.S. Environmental Protection Agency, Office of Air and Radiation. April 2003. Regulatory Announcement: Public Health
and Environmental Benefits of EPA's Proposed Program for Low-Emission Nonroad Diesel Engines and Fuel. EPA420-F-03-
010. Washington, DC: GPO. Available online at http://wvt'w.epa.gov/nonrpad/
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       In FY 2005, the Agency will continue to  seek further reductions in  mobile source
emissions to attain and maintain the new ozone and PM NAAQS.  For example, locomotives and
commercial marine engines contribute significantly to NOX and PM emission inventories in
many urban areas and their contribution will grow over time compared to other mobile sources.
It is estimated that in 2020, these engines will contribute to 20 percent of mobile source diesel
PM and 30 percent of mobile source NOX emissions.28 To address these significant contributors
of air pollution, the Agency is planning a  proposal hi 2005 that will  apply advanced after-
treatment technologies to these sources and require low sulfur in their fuel. For locomotives, the
Agency also plans to address idle emissions  and the possibility of retrofit PM requirements. In
addition, the Agency is committed to further  reduce emissions from large commercial ships with
a final rule by April 2007.

       EPA also plans to continue to  address emissions from small gasoline engines (under 50
horsepower) hi FY 2005. The requirement to develop a regulation addressing these engines was
included in the FY 2004 Consolidated Appropriations Bill.  The  regulatory program would
include exhaust and evaporative emission standards for marine engines, non-handheld engines
(such as those used hi lawnmowers), and handheld engines (such as those used in trimmers,
chainsaws). The program would also  include exhaust emission controls  for small engines used
hi  youth  all-terrain vehicles (ATVs).   According to  the Appropriations Bill, the statutory
deadline for this program would be December 2004 for a proposal, with a final rule in December
2005.

       Currently, there are no on-board diagnostic (OBD) standards for engines  used in heavy-
duty (HD) trucks. Because of the recently promulgated  2007 HD  truck standards, these vehicles
will become more complex and dependent on electronic controls and exhaust emission control
technology.  Having OBD requirements  hi place will help ensure that the full  benefits of the
emission standards will be realized in-use, hi particular  by monitoring for failure of the exhaust
emission control system.  A proposal  is planned for 2004, with a final rule hi 2005. EPA will
work together with California,  Japan, and the  European Union  to  develop world-harmonized
OBD requirements.  A similar OBD  program  is planned for non-road  diesel engines, with a
proposal expected in 2005.

       In-use compliance is  an important element  of  EPA's regulatory programs.  EPA has
entered into  a settlement agreement  with the Engine  Manufacturers  Association and several
engine manufacturers that resolves several  lawsuits related to  non-compliance.   Under this
agreement, EPA is initiating a consultative process with regard to establishing through regulation
an in-use compliance surveillance program for non-road diesel engines.  This program is vital to
ensuring that new engine standards are actually met in-use under real-world conditions.  The
program will deter the use of defeat devices, as  well as detect emission malfunctions that could
cause emissions to exceed standards. A proposal is planned for 2004 with a final rule hi 2005.

       Another important area of work hi FY 2005 is  mobile source ah toxics. In FY 2001,
EPA issued the Mobile Source Air Toxics Rule  (MSAT) to address emissions of air toxics from
mobile sources.  This 2001 MSAT rule  identified 21 mobile source air toxics, which include
several volatile organic compounds and metals, as well as diesel particulate matter and diesel
28 U.S. Environmental Protection Agency, Office of Air and Radiation. April 2003. Draft Regulatory Impact Analysis: Control
of Emissions from Nonroad Diesel Engines. EPA420-F-03-008. Washington, DC: GPO. Available
http:,vwww.epa.gov/no»road'W3008.pdf. Date of Access: December 8,2003.

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exhaust organic gases.  The MSAT rule  also evaluated the  effectiveness of existing mobile
source emission control programs in reducing highway emissions of the identified mobile source
toxics. Air toxic reductions of about 1.4 million tons are expected between 1996 and 2020 from
existing programs that reduce ozone and particulate matter (PM), including:  the reformulated
gasoline  program, the national low emission  vehicle  program, the emission standards for
passenger vehicles, trucks and buses, gasoline sulfur control requirements, and diesel fuel sulfur
control requirements.

       The 2001  MSAT rule committed the  Agency to conduct further research and perform
additional rulemaking to re-evaluate the need for and feasibility of additional toxics controls.
EPA intends to finalize this rulemaking in FY 2005. EPA already has promulgated additional
regulations that will reduce air toxic pollutants, including standards for large gasoline industrial
equipment and recreational vehicles  (finalized  in 2002) and  standards for non-road  diesel
equipment and fuel (to be finalized in 2004).

       The MSAT rule EPA intends  to finalize in FY 2005 will be based on synthesis and
analysis of the ongoing analyses that EPA originally committed to in the 2001 rule's Technical
Analysis  Plan.   This includes analyses  of toxics  emissions  from non-road vehicles and
equipment, estimation of exposure  in microenvironments, consideration  of the range of total
public exposure to air toxics, and effectiveness  and  costs of control measures.  EPA will  be
continuing to  collect and analyze  toxic emissions data from on-road  and non-road mobile
sources.   In addition, the Agency  will be analyzing data from several  exposure assessment
projects to characterize the role of mobile sources in creating toxic hot spots and high-end
exposure.  This is relevant to the FY  2005 MSAT rule as well as other policy development
involving state/local and non-regulatory programs.

       In addition to the assessment necessary to support the FY 2005 toxics rale,  EPA will be
conducting analyses to respond to mobile source air toxics issues that are becoming increasingly
important. These include: near-roadway exposure, the mobile source contribution  to emissions
of persistent bioaccumulative toxics  (such as mercury), and health effects  from advanced
technology vehicles.

       The Agency's National  Vehicle and  Fuels Emissions Laboratory (NVFEL) provides
critical support to EPA, the  states, the fuels industry,  the  automobile industry, and non-road
engine manufacturers by testing vehicles  and engines  for  compliance with Federal clean  air
standards.  The NVFEL will continue to conduct vehicle emission tests as part of the pre-
production tests, certification audits, in-use assessments, and recall programs to support mobile
source clean air programs. Tests are conducted on motor vehicles, heavy-duty engines, non-road
engines,  and fuels to: (1) certify and/or confirm that  vehicles and engines meet Federal  air
emissions and fuel economy standards;  (2) ensure engines comply with in-use requirements; and
(3) ensure fuels, fuel additives, and exhaust compounds meet Federal standards.   In FY 2005,
EPA  will continue  to  conduct testing activities  for  fuel economy, LDV and HD  engine
characterization,  Tier II  testing,  reformulated  gasoline, future  fleets, OBD  evaluations,
certification audits, and recall programs.

       EPA also will continue to  conduct  separate in-use testing  on HD  diesel engines to
ascertain compliance with consent decrees  related to violations of defeat device prohibitions and
will expand its in-use presence to include non-consent decree engines and non-road  diesel

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engines.   EPA will  test HD diesel  engines  to  support implementation of 2007 HD diesel
requirements, non-road  diesel engine rulemaking  activities and  develop  Portable Emission
Measurement Systems (PEMS).  In addition,  NVFEL will conduct energy efficiency tests of
electric vehicles, including hybrids, in collaboration with the Department of Energy, as well as
non-road vehicle emission testing in support of non-road regulatory development. EPA also will
continue  testing hydrogen fuel cell vehicles in support of demonstration programs, technical
assessments, measurement method development, and compliance activities. To support on-going
confirmatory and compliance programs, the NVFEL will conduct certification and fuel economy
tests on LDV, LDT, and Light Heavy-Duty Vehicles (LHDV) and will conduct compliance tests
on  in-use LDVs and LDTs.  NVFEL  will  also test LDV and  HD  engines for regulatory
development.

       The new Tier II (ultra-low emission vehicle) standards will increase the annual costs of
generating and  maintaining compliance program  data, as well as create a completely new and
different  standards structure.  The new Tier  II  program provides great flexibility, including
corporate fleet  averaging standards, multi-year phase-in, incentives  for early innovation, and
extensive banking and trading provisions.  These provisions give manufacturers flexibility, but
increase the EPA compliance program costs. In FY 2005, EPA also will begin to implement new
durability provisions to replace regulations under  the CAP 2000 program, in response to a D.C.
Circuit Court of Appeals decision in FY 2002  that instructed the Agency to establish test
methods and procedures by regulation.

       Beginning in 2003-2004, manufacturers will shift product offerings toward extremely
low emitting vehicles and cleaner diesel vehicles.  Furthermore,  new  Federal test procedures
took effect in 2003 for measuring emissions over test cycles  to  characterize the appropriate
acceleration rates, accessory loads, and evaporative systems. These new requirements required
the NVFEL laboratory to achieve greater data measurement stability/accuracy at extremely low
levels as well as introduced new testing cycles and capabilities, resulting in increased annual
operations and maintenance expenses for advanced testing systems and testing flexibilities.  The
new CAP 2000 database system to collect, process, store, and analyze a large volume of in-use
data provided by the regulated industry  also resulted in new annual  maintenance and upgrade
costs.  The regulated industry depends on NVFEL laboratory accuracy to benchmark its own
laboratories and to ensure consistent compliance stringency in the marketplace.

       To ensure achievement  of the  goals  of  the Clean  Air Act through Tier II  and the
2004/2007 Heavy-Duty Diesel  Engine standards, EPA  completed an extensive  equipment
upgrade of vehicle and engine testing capabilities at the NVFEL. Included with this upgrade was
the capability  to test vehicles in four-wheel and all-wheel drive modes of operation.   The
implementation of a four-wheel drive dynamometer also allowed  for the testing of hybrid
vehicles with regenerative braking in a more representative fashion.

       The mobile source compliance program will oversee more than 225 original equipment
manufacturers to ensure that vehicles and engines  (both on-highway and non-road) will meet the
applicable emission standards throughout then- useful life.  The program issues nearly 2,200
certificates of conformity annually. Compliance is audited and ensured through pre-production
certification and confirmatory testing, assembly line testing, various special audit programs, and
in-use testing and recall.  For light-duty vehicles and trucks, there also  is a fuel economy
compliance program, which in FY 2005 will issue about 1,000 fuel economy consumer labels,

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data for the EPA/DOE Gas Mileage Guide and "gas guzzler" tax collection, and data to calculate
the Corporate Average Fuel Economy (CAFE) values for all light-duty manufacturers.

       EPA must continue to strengthen the new compliance-testing program to serve HD
engine manufacturers certifying to the new 2004 emission standard requirements. This program
must be as robust as the compliance program for LDVs and LDTs to prevent a recurrence of the
use of emissions  control defeat devices that  has  taken  place  in  the  past.   HD engine
manufacturers have requested that EPA establish a correlation program similar to the vehicle
manufacturers' program.  This will triple the  size and operation of EPA's current correlation
program.

       In addition, non-road sources are a major certification and compliance workload priority,
as new standards are now taking effect.  In FY 2005, EPA will issue about 1,700 certificates for
non-road sources up from zero in 1996.  These non-road engines require unique test procedures
because the range of products requires different testing, facility  operation, and information
technology costs to collect and process data and to calculate emissions levels.

       For all mobile source industries, EPA will increase compliance and technical assistance.
Since 1996 the number of manufacturers and the number of certificates  issued by EPA has
tripled.  Complex requirements, phase-ins, and new test procedures have greatly increased the
need for EPA-provided  compliance and technical assistance to all mobile source industries,
including: cars, trucks, large and small non-road equipment, forklifts, chainsaws, lawnmowers,
generators, ground service equipment, recreational vehicles, commercial and recreational marine,
and locomotives.

       Another important element of the Agency's work in controlling air emissions is to ensure
that accurate emission data is obtained from the  different categories of mobile sources.  In FY
2000-2001, the  Agency increased  its  focus on the development of a portable emission
measurement system that  will allow the Agency to  acquire in-use emission  data in a cost-
effective  manner.   From  FY  2001  to  FY 2004, EPA refined its in-use  NOX measurement
capability and developed its PM measurement capability. In FY 2005, EPA will continue to test
and develop the complete system to include air toxics measurement capability. The Agency plans
to continue using portable systems to characterize in-use emissions from light-duty vehicles,
heavy-duty highway vehicles, and non-road equipment. The newly acquired emission data will
enhance EPA's emission models.

       The Agency also will emphasize improvements hi its transportation emission models  in
FY 2005. EPA has developed an architectural framework for a new generation model that will
greatly improve the Agency's ability to support the development of emission control programs,
as well as provide support to  the states in their determination of program needs to meet air
quality standards. The Agency will continue developing the new transportation emission model
hi FY 2005, as well as providing guidance and training hi the use of mobile source models.

       The Agency will continue to develop partnerships that emphasize  the development  of
innovative transportation control and technology-based strategies and voluntary mobile source
programs.  The Agency will continue  providing technical guidance for implementing the
National Low Emission Vehicle program.


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       EPA also will  continue implementing Phase II  of the  reformulated  gasoline (RFG)
program, which will result in additional HC, NOX, and toxic emission reductions in 17 states and
the District of Columbia.  RFG is designed to substantially reduce vehicle emissions of ozone-
forming and toxic pollutants, which is estimated  to reduce VOC emissions by 27 percent, toxic
emissions by 22 percent, and NOX emissions by 6.8 percent.29 This is the equivalent of taking 16
million vehicles that burn conventional gasoline off the road.30

       EPA will continue to address issues associated with the use of oxygenates (e.g., MTBE
and ethanol) in RFG and will review the industry's retail station survey plan. Several states have
banned the use of MTBE and have submitted or may submit requests for waivers from the
oxygen requirement of RFG.  EPA will evaluate these waiver requests to determine whether a
waiver from the requirement should be granted. In addition, 1-hour non-attainment areas that are
bumped up to "severe" will be required to have RFG hi place, and EPA will help implement the
new programs as they become RFG-covered cities. The Agency will also continue to collect and
review data submitted by manufacturers of motor  fuels and fuel additives to assess whether
fuels/additives different from conventional fuels (e.g. oxygenated fuels) cause any unexpected
toxic effects.

Federal Support for Air Quality Management

       EPA develops  Federal measures  that reduce emissions  from stationary and mobile
sources.  States and  Tribes must develop the additional  clean air measures necessary to meet
NAAQS. Current plans for NAAQS review are summarized below.

       PM: The Agency will propose the PM-2.5 rule in 2004 and finalize it in late 2004.  Area
designations for PM-2.5 will be final by December 2004. EPA is working with States to develop
strategies that will be effective hi reducing emissions as well as voluntary actions that can be
implemented early to provide for the health protection sooner than required under the Act.  The
Agency is  coordinating  its efforts to  implement the ozone and PM-2.5  standards with the
Regional Haze rule to maximize the ability of the  States, Tribes and regulated community to
respond to these requirements hi an integrated fashion.

       A major focus of the PM program hi FY 2005 will be to complete the assessment of
PMa.5 as it moves from point, area, and mobile sources  and source regions to  downwind areas
and to identify major contributing sources of precursor pollutant emissions (e.g., SOX, NOX). The
Agency proposed an Interstate Air Quality Rule to reduce emissions of SO2  and NOx hi the
eastern U.S. This is an important component of EPA's efforts to implement the new NAAQS for
fine  particles  and 8-hour  ozone.   The  Agency also proposed a rule for implementing the
transportation  conformity program under the new NAAQS and expects to publish a final rule hi
FY 2004.

       Ozone:  EPA will  continue to implement the national program for the 1-hour ozone
standard, providing technical support to states required to submit mid-course reviews hi 2004.
This includes preparing example model applications, 10-year trends analyses, and other factors
29 "Protection of Environment." Code of Federal Regulations. 2003 ed. Title 40, Pt. 80, Sec. 80.41 (f).
30 U.S. Environmental Protection Agency, Office of Air and Radiation. February 2002.  Reformulated Gasoline Transition Fact
Sheet. EPA420-F-02-001. Washington, DC: GPO. Available online at http:/ymTO^epa.gov/otaq/regs/faeis/rfa/'fD200t.pdf..
Date of Access: December 2, 2003.

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that  can be used  as  part  of the  weight-of-evidence relative to demonstrating progress  in
attainment.  EPA  will review  1-hour data for the purpose of publishing determinations  of
attainment and to support redesignation from non-attainment. Where air quality data show that a
non-attainment area has failed to meet its required attainment date, EPA will implement the
reclassification provisions in the Clean Air Act.

       EPA proposed a rule for implementing the 8-hr ozone NAAQS in June 200331 and
expects to  publish  a final rule  in 2004.    In FY 2003, states  and Tribes  submitted
recommendations for non-attainment and attainment areas.  EPA will review and modify the
recommendations (working with the states and Tribes) and prepare  designation rulemaking,
which  is scheduled to be completed by the court ordered deadline  of April 15, 2004.  As
mentioned above,  EPA also proposed a rule for  implementing the transportation conformity
program under the new ozone  and participate  matter NAAQS.  In FY 2004, EPA will also
propose changes to the regulations  governing vehicle Inspection and Maintenance (I/M) under
the 8-hour ozone NAAQS. The Agency expects to publish the final changes in FY 2005.

       EPA will announce its plan  to review and possibly revise its policy on the reactivity of
VOCs  in FY 2004, seeking input from stakeholders.  The review and  potential revision of this
policy  will address the impact of the policy on other environmental concerns, such as the impact
on PM emissions, toxicity, ozone  depletion, global warming, and water quality to assure  an
integrated, holistic approach. In FY 2004 and 2005 we will be addressing these impacts through
guidance documents and where appropriate issuing rules.

       SCte: Currently, there are only a limited number of areas that do not monitor attainment
of the  SO2 standard.  EPA and States will continue the implementation program currently in
place.  EPA will also continue to evaluate data encouraging States that show high  short-term
peaks to continue monitoring.

       CO:  Improvements in vehicle and emissions control technology have greatly  reduced
emissions of carbon monoxide. EPA is currently involved in review of the CO NAAQS standard
as described under work on federal stationary source regulations.

       Lead: Human exposure to  lead in the ambient air has been significantly reduced as a
result of the phase-out of lead in gasoline. EPA will continue a relatively low level of on-going
work, emphasizing the few remaining problems in the vicinity of sources such as battery plants
and lead smelters.

       Supporting States and Tribes: In providing support to states and Tribes, EPA will give
priority to attaining  the NAAQS  for PM2.5 and  ozone.   EPA will  review and finalize the
attainment/non-attainment area designation recommendations from the states and Tribes. The
Agency will complete the  implementation  rules that will  guide the  states and Tribes  in the
development of their implementation plans. EPA  also will work with states and  local areas to
develop control strategies to reduce emissions of PM2.5, ozone and their precursors.  The focus
will  be on early reductions  and innovative strategies that  can provide.the nation with public
health  benefits sooner.  EPA will work directly with areas  having  the greatest problem in
meeting the standards, using new, innovative approaches to achieve early emission reductions.
31 68 FR 32802
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These programs have the potential to provide substantial public health benefits as a result of
early planning, implementation, and emissions reduction leading to expeditious attainment and
maintenance of the NAAQS for ozone and PM-2.5.

       Early  Action  Compacts  for  implementing  the  8-hour ozone standard  will  play an
important role hi the national ozone management program for FY 2005.32  The purpose of this
program is to support and reward voluntary, early emission reductions to reduce ozone around
the country. Through these Early Action Compacts, EPA is supporting the innovative efforts of
33 communities around  the country that  have pledged to reduce air pollution  ahead of the
deadlines under the Clean Air Act.  Communities with Early Action Compacts will voluntarily
start reducing  air pollution ahead of schedule.  These communities will bring substantial and
sustainable health and environmental improvements to their residents much sooner than would
have been achieved without these agreements.   By December 31, 2004, states with Compact
areas are required to submit adopted measures for these areas to EPA as a SIP revision to satisfy
one  of the Compact milestones and to continue being eligible for a deferral from the effective
date for non-attainment designation (for any Compact  area that is designated non-attainment by
April 15, 2004). EPA will continue tracking progress of all Compact areas.

       EPA will continue to work with the States of North Carolina (NC) and South Carolina
(SC) and local officials in the Charlotte, NC/Rock Hill, SC region to develop a model integrated
air quality plan for the Central Carolinas Region. EPA's goal for this pilot project is to integrate
efforts to address  multiple air  quality problems  --  ground-level ozone,  PM, and toxic air
pollutants - and to incorporate energy, transportation,  economic development,  and land-use
planning into a single, model plan that can be used hi different areas across the country.  EPA
will  provide technical support in  air quality planning,  transportation planning,  modeling for
criteria pollutants and air toxics as well as decision support tools for testing various options for
integrated planning for clean air.

       Air quality monitoring is essential  to providing a firm scientific basis for designing the
national clean air program and measuring  the results of Federal, state, Tribal, and local efforts.
EPA will continue to  fund and oversee the national air quality monitoring network operated by
states.  The Agency is working with states, Tribes, and local agencies to develop an integrated
ambient  monitoring strategy that  will refocus the existing air monitoring program  towards
current data collection needs  for ozone, PM, and air toxics. This national monitoring strategy
will  provide agencies with more flexibility in designing their networks.  The final strategy and
proposed implementing rules will be issued hi FY 2004.  Final rules will be promulgated within
one  year. To  ensure source and  ambient monitoring measurements are credible, EPA will
continue developing quality assurance protocols and conducting quality assurance audits.33

       In FY 2005, EPA will continue to provide technical support to the states and Tribes to
help implement and assess the effectiveness of alternative control strategies on local and regional
air  quality.    Tools  such  as  development  of  the national monitoring  strategy,  source
characterization analyses, emission factors and emission inventories, statistical analyses and
source apportionment techniques, quality assurance protocols and audits, and unproved source
testing and monitoring techniques will be developed.  EPA will continue  to analyze ambient
32 www.epa.gov/ttn/naaqs/ozone/eac/
33 National Air Monitoring Strategy, http://www.epa.gov/ttn/amtic/monitor.html

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monitoring data to  provide insight into how precursors contribute to the PM-2.5 and ozone
problem.  Additionally, EPA will evaluate pollutant management programs, develop emissions
inventories to determine the most important sources  of emissions,  and conduct modeling to
develop alternative national and/or local  control strategies to attain the PM-2.5  and ozone
standards.  EPA, states, Tribes, and Regional Planning Organizations  will work collaboratively
in developing and improving urban and regional-scale numerical grid models and evaluating
their accuracy and  applicability to complex air quality issues, including international/border
issues.

       EPA will partner with states, Tribes, and local governments to create a comprehensive
compliance program to ensure that vehicles and engines pollute less. EPA will use advanced in-
use measurement techniques and other sources of in-use data to monitor the performance of
OBD systems on vehicle models to make sure that OBD is a reliable check on the emissions
systems as part of vehicle I/M programs. In FY 2004, basic and/or enhanced vehicle I/M testing
was being performed in over 30 states with technical and programmatic guidance from EPA.  In
FY 2005, EPA will continue to assist states in incorporating OBD inspections into their I/M
programs. EPA will also support states in evaluating I/M programs, as directed by the Clean Air
Act and recommended by the National Academy of Sciences. With this information, EPA will
work to establish an integrated information system that allows for assessment and action on those
vehicles and engines that present the greatest environmental risk.

       As part of implementing the ozone  and PM standards, EPA plans to provide state and
local governments with substantial assistance hi  implementing the conformity rule during this
period, because the first conformity determinations for the new standards will be due hi the
spring of 2005. EPA will continue to ensure national consistency in adequacy findings for motor
vehicle emissions budgets in air quality plans. In addition, EPA will work with states and local
governments to ensure the technical integrity of the mobile source controls in the SIPs. EPA will
also assist areas in identifying the most cost-effective control options available.

       Through EPA's Air Pollution Training Institute (APTI), technical air pollution training is
provided to state, Tribal, and local air agency professionals.  The APTI facilitates professional
development by enhancing the skills necessary to understand and  implement environmental
programs  and policies.   The  training is provided through  a variety of formats, including
classroom and satellite courses hosted nationwide, self-instructional courses in print and Internet-
based format.

       Visibility  Implementation:   EPA's  regional haze  program is aimed at improving the
visibility at our National Parks and Wilderness areas. Visibility is impaired by the same types of
pollutants that EPA is addressing in the PM2.5,  ozone, and Acid Rain programs.  Because of
regional variations hi natural conditions which combine with man-made pollution to produce
regional haze, EPA believes that regional haze  should be addressed  through a region-specific
program that accounts for these variations.  EPA will continue supporting Regional Planning
Organizations concerned with regional haze and associated PM impacts through the set up and
application of regional scale models.
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       In July of 1999, EPA promulgated a Regional Haze rule to address this problem.34  On
May 24, 2002, a decision by  the DC Circuit Court vacated EPA's proposed Best Available
Retrofit Technology (BART) requirements within the Regional Haze rule. As a result of this
decision, BART guidelines are expected to be re-proposed in FY 2004, with a final rulemaking
to be issued  in FY 2005.  The rulemaking will  include guidance on determining individual
facilities' contribution to haze versus cumulative contribution and on evaluating "reasonable
progress" control strategies under the Regional Haze rule.

       EPA also will continue  working with the United  States Department of Agriculture
(USDA) to develop a data system linking wildland and prescribed fire emission tracking systems
and supporting databases used to assess air quality impacts and improve emission models. While
EPA acknowledges the use  of fire  as an efficient and economical land management tool in
maintaining the health of fire-tolerant and fire-dependent plant and animal  ecosystems, EPA
continues to work with Federal land management agencies to address the effective use of fire
while minimizing public health and air quality impacts. EPA also continues to work with USD A
and the Department of the Interior to include EPA data needs in the national fire database. EPA
collaborates with the Departments of Agriculture and  Interior on identifying and  developing
innovative  information technologies to provide the land management community with tools to
improve burn planning and air quality management.

       EPA will continue assisting  states  and Tribes  with regional scale  models, including
identifying meteorological and emissions inputs  and developing emission projections.  These
model  applications will provide the  basis for  assessing  regional emission control strategies for
PM2.5  SIPs, and  regional haze  goals.   The  strategies  for improving visibility will provide
additional  health and welfare benefits,  since many of the pollutants that  lead to  visibility
impairment also contribute to PM, ozone, and acidic  deposition.  EPA estimates that when the
regional haze goals are folly achieved in 60 years, additional benefits will be worth up to $20
billion per year.

       Cross-Pollutant Operating Permits and New Source Review (NSR):  In FY  2004, EPA
will continue efforts to finalize the certain monitoring requirements rule by mid-January 2004
and to develop additional rules on periodic monitoring  and on monitoring issues in underlying
Federal and state rules. EPA will also continue to provide technical support to  states, Tribes, and
local agencies on the permit program.  By December 2003, states and local agencies were to
have completed issuance of the first round of Part 70 permits. As of October 1, 2003, 82 percent
of all initial permits had been issued with a projection of this rising to 95 percent by December
2003.  In FY 2004, the EPA intends, with assistance from state and local  permitting authorities,
to continue to address permit issuance with a focus on permit renewals EPA plans to continue its
4-year effort of evaluating all state permitting programs.  The EPA will expand training  and
technical support efforts to ensure smooth incorporation  into  operating permits of rules that have
recently become effective.  In FY 2004, efforts on a web-based Title V training effort for citizens
will be completed. By early FY 2005, the EPA will decide if area sources subject to six MACT
standards will need to obtain Title V permits.

       In FY 2003, the EPA promulgated the final Prevention of Significant Deterioration (PSD)
and non-attainment NSR rule.  This rule, which was published in the Federal Register on
34 64 FR 35714
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December 31, 2002,35 finalized five reforms to the PSD and NSR programs that will streamline
the program, and remove barriers and create incentives for environmentally beneficial projects.
The EPA promulgated additional changes on  March 10,  2003 incorporating these changes for
states with NSR/PSD delegation36.  The final rules became effective in March 2003.   On
November 7, 2003, EPA completed  its response to a number of petitions requesting EPA to
reconsider these rules37.  Although the rulemaking is now complete, it remains under legal
challenge, and this litigation will be moving forward during FY 2004 and likely 2005.

       During FY 2004, the EPA will continue work on additional improvements to the NSR
program. In FY 2003, the EPA proposed a definition for "routine maintenance" that would add
certainty for sources and states (December 31, 2002)38.  The EPA finalized the equipment
replacement provisions of this proposal on October 27, 200339.  EPA will determine whether
additional action is needed on other parts of this proposal.

       In FY 2004 and FY 2005, the EPA will work with states to implement these revisions to
the PSD and NSR rules. In states that administer Federal NSR and PSD rales under delegation
agreements with EPA, the EPA will work with states to  complete updates to the delegation
agreements and  to begin implementing the revised rales. In states that administer their own NSR
and PSD rales, as approved into their SIPs by EPA, the EPA will work with states to ensure that
new rules are adopted by states and approved  by the EPA consistent with  the revised rules.
Changes to these rales must be adopted within 3 years, (i.e., by FY 2006).

       In  FY 2005, EPA will complete the  2-year cooperative agreement  supported  by the
RACT/BACT/LAER Clearinghouse (RBLC)  to fully implement the  New and Emerging Air
Technology (NEAT) Web database  as a  self-sustaining data source.  In addition, EPA will
continue to maintain, operate and acquire and enter data into the RBLC. In FY 2004, the EPA
will complete work integrating the RBLC Web data base with other EPA data bases that contain
data on air emission sources and reduce the number of RBLC data fields by approximately 40
percent to lower the resource burden  on state and local agency and EPA staff. In FY 2003, the
Clearinghouse completed the acquisition and entry of missing permits issued in the last 10 years
(begun in 2002), awarded the NEAT cooperative agreement, and implemented many complex
system improvements.

Federal Support for Air Toxics Programs

       EPA has a number of programs to provide information and  tools to communities in
reducing air toxics emissions and risk.

       Reductions in  the total annual  emissions of HAPs are compiled in EPA's National
Emissions  Inventory (NEI)40.   The NEI provides only a crude indicator of reductions in
population exposure and generally does not capture local scale risks.  To provide this additional
information, EPA has an ongoing comprehensive evaluation of air toxics called the National Air
35 67 FR 80186
36 68 FR 11316
37 68 FR 63021
38 67 FR 80920
39 68 FR 61248
40 National Emission Inventory Data, http://www.epa.gov/ttn/chief/net/index.html

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Toxics Assessment (NATA).  NATA began with emissions data for 1996, estimated ambient
concentrations for 33 HAPs in each of the  approximately 62,000 census tracts nationwide,
estimated average exposures to people, and calculated the potential cancer and non-cancer risks
associated with those exposures.  This ongoing assessment has been reviewed by the Science
Advisory Board (SAB) and by state and local agencies.  The NATA information is used by the
EPA air toxics program to help set priorities, measure progress against goals, and develop study
plans for more  detailed local assessments, which will help identify the potentially higher
exposures (i.e., hotspots) that may exist in urban environments and link these concerns to local
risk reductions. The NATA is updated periodically.

       In FY 2005, EPA will assemble an air toxic version of the NEI for the year 2002, which
can be used by EPA, states, and others to analyze the public health risks from air toxics and
strategies, and to manage that risk.  The Agency will work with partners to develop improved
emission factors.  This effort will include gathering improved activity databases and using
geographic information systems (GISs) and satellite remote  sensing, where possible, for key
point, area, mobile, and fugitive source categories and global emission events.  In FY 2005, EPA
will continue to update NATA.

       EPA will continue to work with state and local agencies in a joint Air Toxics Monitoring
Steering Committee to implement a national air toxics monitoring network.  The SAB expressed
clear  support  to the Steering Committee's  approach  for developing  this  capacity through
monitoring pilots carried out under the sponsorship of the Committee. The data analysis phase
of the initial assessment work, reflected in a  10-city air toxics monitoring pilot project, was
completed in mid-2003. Data from this effort will be used to complete the design of a network
for a national air toxics characterization by early calendar year 2004. The Steering Committee
developed an initial design based on a limited, strategic network of national sites, coupled with
more extensive community-scale monitoring, to provide the most representative assessment of
the nation's air toxic pollution and enable EPA to better gauge the success  of Agency efforts in
reducing overall risks from air toxics.41

       In FY 2005, EPA will continue to develop the state, local, and Tribal component of the
Air Toxics Program so state, local and Tribal agencies can address emission issues that are of
concern on a state-wide, area-wide, or community-wide basis. As part  of this effort, EPA will
continue to support community assessment and risk reduction projects. Community assessments
are conducted to characterize the level of risk from toxic pollutants  in specific areas.   The
geographic areas evaluated can vary from a neighborhood to entire towns and cities. EPA will
provide information to states and communities through case examples, documents, websites, and
workshops on tools to help them  in conducting  assessments  and identifying risk reduction
strategies.  This will allow state, local and Tribal governments, industry, public interest groups,
and local citizens to work together to determine if actions are needed, and if so, what should be
done.  EPA will  also compile and  analyze the information collected from the  community
assessments and use it to better characterize risk and assess priorities for further action.

       Although EPA recently promulgated new rules regulating diesel emissions, the benefits
of these rules will not be realized for at least five years.  In the meantime, older, dirtier vehicles,
41 Draft National Air Toxics Trends Sites Technical Assistance Document,
http://www.epa.gov/ttn/amric/files/ambient/airtox/o^afttad.pdf

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often on the road for a million miles or more, will continue to adversely affect the nation's
health. To date, voluntary diesel retrofit projects have resulted in over 150,000 commitments to
retrofit  diesel engines,  equivalent to  reductions of approximately  60,000 tons of harmful
pollution. During FY 2002, through this program, EPA worked with fuel companies to begin
delivering ultra-low sulfur diesel fuel to centrally fueled fleets throughout certain parts of the
country - four years before it is required.  EPA has also developed several emissions  testing
protocols that will provide potential purchasers of emission control technology a consistent, third
party evaluation of emission control products.  EPA has developed partnerships with state and
local governments, industry, and private companies to create project teams to help fleet owners
create the most cost-effective retrofit programs.

       EPA will also continue to provide technical  expertise and support to state,  local, and
Tribal air toxics programs in assessing and reducing mobile source  air toxics.  This support
includes  models and other assessment tools;  guidance on the application of such tools for
evaluating impacts of proposed transportation facilities and the benefits of voluntary  mobile
source control programs; and education and outreach materials.

       Through increased data collection efforts on  air toxics in FY 2005, EPA also will  be
focusing on local hotspots and providing support on environmental justice issues. The Agency
will evaluate and improve local-scale modeling efforts to support local evaluations or community
assessments.  The EPA also plans to continue air deposition hot spot analyses for water  quality
problems. These analyses will utilize air dispersion and deposition modeling to identify the most
likely emission  sources contributing to the problem.

       EPA has continued its efforts under the Air-Water Interface Work Plan to address and
prevent adverse effects of atmospheric deposition to coastal and inland waterways  (i.e., Great
Waters http://www.epa.gov/oar/oaqps/gr8waterA).  This work involves collaboration within EPA
offices and with the National Oceanic and Atmospheric Administration (NOAA). In FY 2004,
EPA is updating the Air-Water Interface Work Plan and will continue to implement it in FY
2005.  These efforts  involve the development and support of multi-media approaches to reduce
risk and achieve water quality standards, such as  enhancing technical tools and  developing
demonstration projects that facilitate Federal,  state,  Tribal  and Regional deposition reduction
strategies. The EPA will also provide up-to-date information regarding air deposition, emission
sources,  monitoring  technologies,  and toxic effects through education and outreach  efforts.
Planned  outreach efforts include both synthesizing  current  trends information and  sponsoring
workshops/conferences.

       Urban encroachment on farming communities and a growing number of large  animal
feeding operations (AFOs) have resulted in increased citizen complaints and rising concerns that
air emissions from  AFOs may have impacts on  the environment and public health.   At the
present time,  the EPA does not have  emission  factors sufficient  to support  regulatory
determinations for animal agriculture. In some cases, there may not even  be adequate technical
approaches for characterizing  the emissions.

       EPA contracted the National Academy of Sciences (NAS) to review the scientific issues
and make recommendations related to characterization of the swine, beef, dairy, and  poultry
AFO industries; measuring and estimating emissions; and analyzing potential best management


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practices, including costs and technological feasibility. The NAS findings.42 identified numerous
deficiencies in EPA's methodologies and technical tools  for estimating  emissions for this
industry. As a result of the NAS study, EPA is working with industry, the US Department of
Agriculture  (USDA),  academia, and non-governmental  organizations  to develop  a two year
monitoring program to fill data gaps in the emission estimates. EPA hi partnership with USDA,
is prioritizing a research agenda to ensure critical research is initiated immediately.  Concurrent
with the monitoring program, in FY 2004, EPA is beginning the development of a regulation for
AFOs.  The Agency will prepare an announcement of its strategy and hold public meetings
around the country. Following public comments, a proposed rule will be drafted.

       In FY 2005, the Agency will continue the two year monitoring program and development
of a final rule.  The Agency will  also develop various non-regulatory approaches to reduce air
emissions from AFOs, including voluntary measures, Agency guidance materials, training and
outreach. EPA will continue to work cooperatively with the agricultural industry, academia, the
USDA, and the Congressionally established Agricultural Air Quality Task Force  to develop
scientifically valid emission estimates from AFOs for PM,  PM10, PM2.5, hydrogen sulfide,
ammonia, and volatile organic compounds (VOCs).

Clean School Bus Initiative

       In FY 2005, EPA will expand its efforts to help create voluntary diesel retrofit projects to
reduce diesel emissions from school buses. In FY 2003, the Agency launched the Clean School
Bus USA initiative. This program will help ensure that school buses - which are the safest way
for kids to get to  school — are also the cleanest possible transportation for this generation of
school children.

       More than 24 million children in  the U.S. ride  a bus to and from  school every day.
Because school buses often remain in service for 20 or more years, this program will help equip
our nation's school bus fleet with low-emission technologies and practices sooner than would
otherwise  occur through bus  fleet  turnover.   Older buses can  now be equipped with safe,
affordable and more effective technology that will reduce emissions to very low levels - some
that will be close to the performance standards required for new bus engines  starting in 2007.
The expanded program provides grants to governmental entities to replace pre-1991 school buses
with new clean school buses offering state-of-the-art emission control and safety features and to
retrofit post-1990 school buses with similar advanced emission controls. Clean School Bus USA
brings together school districts and administrators,  bus-fleet operators, health advocates, fuel
providers, bus manufacturers and emissions-technology innovators to craft a collaborative, cost-
effective program to protect the health of school children and the public.

Categorical Grant: State and Local Air Quality Management

       This program funds over 100 state and local agencies to implement the requirements of
the Clean Air Act Amendments described above.  It also funds regional planning organizations
to develop  the regional  haze implementation strategies.  Funding  for the development and
maintenance of ambient air monitoring networks is also included in this program/project.
42 http://www.nap.edu/catalog/10586.html
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Categorical Grant: Tribal Air Quality Management

       This program funds Tribal bodies to build their capacity and develop the measures
needed to implement the Clean Air Act Amendments as described above.

International Capacity Building

       Despite recent improvements, poor air quality is still a major concern throughout the
world. In the developing world, urban air pollution has worsened in most large cities, a situation
driven by population growth, industrialization and increased vehicle  use.  The World Health
Organization (WHO) estimates that as many as 1.4 billion urban residents throughout the world
breathe air exceeding the WHO ah" quality guidelines.43

       The health consequences of air pollution are considerable. On a global basis, estimates of
mortality due to outdoor air pollution run from around 200,000 to 570,000 people, representing
about 0.4 to 1.1 percent of total annual deaths.44 Moreover, air pollution contributes significantly
to respiratory disease in children.  In developing countries, acute respiratory infections (ART) are
the leading cause of death of children under the age of five.

       Air pollution from other countries  also affects the U.S. in a number of ways.  First, it
affects the U.S.'s ability to meet domestic air quality goals.  Recent studies show the adverse
impacts of air pollution from Asia on the U.S. Pacific coast, haze from fires in Central America
and Mexico on the southern U.S., dust storms from Africa on Florida, and air pollutant flows
between the US and Europe.   Additionally, persistent and bioaccumulative  pollutants are
transported throughout the world.  Finally, greenhouse gases, black carbon particles, and ozone
from throughout the world contribute to global climate change.

       To achieve  our  objective  of preventing further  degradation  of air quality,  both
domestically and internationally,  EPA  will  work to build the  institutional  capacity within
developing countries and regionally to  manage air pollution.   EPA's focus will be on those
countries that have demonstrated potential to affect human health and  the environment globally
and those that are leaders globally and regionally.  Key regions and countries include  Asia
(China and India), NIS (Russia), Central America  (Guatemala and Panama),  South America
(Chile and  Brazil), Africa  (Kenya, Nigeria, South  Africa, Ghana,  and Uganda), and our
neighbors (Canada and Mexico).  Specifically, EPA's international air quality capacity building
programs will focus on:

•      Development  of credible  information, innovative tools, and training  on air quality,
       emissions, transport, and health  impacts hi order to build the  infrastructure  needed to
       address critical needs worldwide;  and
•      Development  of regional strategies and collaborative work with partners, particularly
       with the World Bank's series of  regional Clean Air Initiatives  - Clean Air Initiative for
       Latin American Cities; Clean Air Initiative for Asian Cities, and Clean Air Initiative for
       Sub-Saharan African Cities.
43 World Resources Institute, U.N Enviornmental Programme, U.N. Development Programme, and the World Bank. "1998-1999
World Resources: A Guide to the Global Environment." Oxford University Press, 1998.
44 World Resources Institute, U.N Enviornmental Programme, U.N. Development Programme, and the World Bank. "1998-1999
World Resources: A Guide to the Global Environment." Oxford University Press, 1998.

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       EPA's most important strategy internationally is to build capacity over the long-term to
manage air pollution.  People and institutions are the foundation on which key programs are
carried out and agreements implemented on-the-ground.  Without this basic infrastructure, the
programs will not be sustainable or replicable. As a thread that runs through the international air
quality management program, capacity building programs will help enhance air quality in the
U.S. and developing countries, leading to improvements in human health and the environment.
FY 2005 CHANGE FROM FY 2004

EPM

•      (+$3,300,000):   Increased  funding is requested to develop the emission factors  and
inventories needed by the states to help them develop SIPs.  To develop these tools, EPA  will
develop good testing data based PM2.5 emission factors (with speciation profiles) for 3 to 6
industrial processes prioritized by  their contribution to the PM2.5 inventory.   Coal and wood
waste combustion, metals processing, mineral products and pulp and paper are candidates for
this effort.  Together these sources  represent 65 percent of industrial sources of PM2.5.  We  will
also develop factors for processes where new testing was not required.  This assumes that some
emissions factors would be paid for by industry.

       Additional funding will develop and improve the following products and services used by
states as they develop their State Implementation Plans to implement the NAAQS:

       •      new methods  for ambient measurements, including: (1) routine testing for nitric
       acid, ammonia, and true nitrogen dioxide, and (2) unproved artifact-free aerosol carbon
       measurements (e.g., to better address abatement of diesel PM);
       •      source characterization for measuring: (1) VOC on  an actual mass basis, (2)
       sulfuric acid/sulfur trioxide  in the presence of ammonia, (3) higher-resolution fugitive
       ammonia emissions  from  sources such as  animal  feeding operations,  and  (4)  low
       concentration/high flow rate NOx  emissions from sources such as internal combustion
       engines and stationary gas turbines;
       •      emission factors for source  types that  contribute substantial  quantities of
       carbonaceous PM2.5.  For each source category, factors will be developed for primary and
       filterable PM2.5 and  PMio,  condensable  PM, SO2, NOx,  VOC, 16 specific Polycyclic
       Aromatic Hydrocarbons (PAH), and all other compounds and elements analyzed in the
       speciation trends network;
       •      highly resolved fire emission inventories for the entire U.S., to allow separation of
       their effects from local sources of carbonaceous PM2.5;
       •      guidance  and methods  for using source-receptor  analysis  to  untangle  the
       contributions that different source types make to ambient concentrations of carbonaceous
       PM2.5;
       •      speciation profiles  for  important source  types, better reflecting eastern U.S.
       conditions than the profiles currently available;
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       •     ready-to-use temporal and spatial allocation procedures and data files, so that air
       quality modeling with improved emission inventories can be used to assist hi determining
       just how much contribution each source type makes to non-attainment; and
       •     information on the effectiveness and  costs of regulatory  and non-regulatory
       approaches for reducing emissions.

•      (+$800,000):  Increased funding is requested for the Clear Skies Initiative, a program that
will  cost-effectively reduce emissions of multiple pollutants  from the power sector.   This
innovative approach addresses the major issues facing the Air Program — the adverse health and
environmental effects caused by excessive PM2.5, ozone, and air toxics in our communities - by
replacing or streamlining the multitude of existing, uncoordinated regulatory approaches  aimed
at controlling emissions  from the  power  sector  with a single,  national  program that  is
comprehensive, cost-effective, and ensures emission reductions.  With additional funding, we
will  establish an  integrated  assessment program to include enhanced ambient and deposition
monitoring and develop a baseline prior to implementation of the program.  Absent progress on
enactment of Clear Skies legislation, we will direct these resources to comparable activities for
the development and implementation of the Interstate Air Quality Rule.

•      (-$1,500,000):  Funding is redirected from the EPM appropriation Federal Support for
Air Toxics Program to the STAG appropriation to support the Clean School Bus Initiative.

•      (-$1,300,000):  Funding is  redirected to Federal Stationary Source Regulations  and
Federal Support for Air Quality Management. These resources will support the residual risk and
areas source rules programs as well as  implementation of the particulate  matter  and  ozone
NAAQS.

•      There are additional increases  for payroll, cost-of-living, and enrichment for existing
FTE.

S&T

•      (+$2,700,000): Increased funding is  requested for an initiative to deliver more accurate
and comprehensive mobile source modeling tools for states to use in identifying cost-effective
control strategies as part of then" SIP development for the new ozone and PM Air Quality
Standards.

       This initiative has two major components.  First component is the collection of more
accurate emission data from vehicles operating hi the field, under real-world conditions. This
effort would be the first attempt  at designing a nationwide emissions study  of light-duty and
heavy-duty vehicles using portable emission  measurement systems (PEMS). The PEMS system
was developed by EPA personnel at the OAR Laboratory hi Ann Arbor, MI, and is an extremely
cost-effective and highly accurate method for collecting real-world data.  The resulting data will
allow EPA and states to better identify potential sources of uncontrolled emissions hi the existing
fleet and evaluate the effectiveness of current and future emission control programs. In addition,
this program will improve the underlying data that is used hi the emission models used  by the
states.
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       The second component of this effort is the development of a new generation model based
on real-world data with the flexibility required to meet today's and future modeling needs for the
states. This  new model will allow the states to conduct modeling at all levels of resolution —
from area-wide inventories to evaluating changes hi emissions on a street corner (i.e., micro-
scale modeling) as a result of a control strategy.  This new generation of emission model will
include all mobile source pollutants of interest, and can be used by states for all mobile source-
modeling purposes.

•   There are additional increases for payroll, cost-of-living, and enrichment for existing FTE.

STAG

•      (+$65,000,000):  In FY 2005, EPA will expand its efforts to help create voluntary diesel
retrofit projects to reduce diesel emissions from school buses. This program will help ensure that
school buses - which are the safest way for kids to get to school - also are the cleanest possible
transportation for this generation of school children. EPA initially launched the program in April
2003 using  $5 million  in  grant funding.   The initial  grant offering garnered  120 grant
applications from every region of the country totaling nearly $60 million in requests and offering
some $36  million in matching  resources. EPA supported 17 of these projects with the given
resources.  By expanding this program,  additional resources are available to communities for
localized solutions that address an issue important to children and parents across the nation. The
expanded program will provide grants to governmental entities to replace pre-1991 school buses
with new clean school buses offering state-of-the-art emission control and safety features and to
retrofit post-1990 school buses with similar advanced emission controls. Clean School Bus USA
brings together school districts  and administrators, bus-fleet operators, health advocates, fuel
providers,  bus manufacturers and emissions-technology innovators to craft a collaborative, cost-
effective program to protect the health of school children and the public. With this new funding,
EPA can greatly multiply the number of buses and children affected.


ANNUAL PERFORMANCE GOALS AND MEASURES

Reduce Air  Toxic Emissions
In 2005     Air toxics emissions nationwide from stationary and mobile sources combined will be reduced by an
           additional 1% of the updated 1993 baseline of 6.0 million tons for a cumulative reduction of 38%.

In 2004     Air toxics emissions nationwide from stationary and mobile sources combined will be reduced by an
           additional 2% of the updated 1993 baseline of 6.0 million tons for a cumulative reduction of 37%.

In 2003     End-of-year- FY 2003 data will be available in late 2009 to verify that air toxics emissions nationwide
           from stationary and mobile sources combined will be reduced by an additional 1% of the updated 1993
           baseline of 6.0 million tons for a cumulative reduction 35%.

Performance Measures:                   FY2003       FY2004       FY2005
                                       Actuals      Pres. Bud.     Pres. Bud.
Combined Stationary and Mobile Source       Data Lag            2          -   1     Percent
Reductions in Air Toxics Emissions
Mobile Source  Air  Toxics Emissions                          .71            .80     Million
Reduced                                                                          Tons
Stationary Source Air  Toxics Emissions                          1.59           1.59     Million
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Performance Measures:                     FY2003        FY2004        FY2005
                                           Actuals        Pres. Bud.      Pres. Bud.
Reduced                                                                                  Tons

Major  Sources, Area  and All Other Air                           +.13            +.14     Million
Toxics Emissions Reduced                                                                  Tons
Baseline:    In 1993, the last year before the MACT standards and mobile source regulations developed under the
            Clean Air Act began to be implemented, stationary and mobile sources are now estimated to have
            emitted 6.0 million tons of air toxics. (EPA's prior estimate was 4.3 million tons and was updated with
            improved inventory data.)   Ah" toxics emission data are revised every three  years to generate
            inventories for the National Toxics Inventory (NTT). In the intervening years between the update of the
            NTI, the model EMS-HAP (Emissions Modeling System  for Hazardous Air Pollutants)  is used to
            estimate and project annual emissions of air toxics. EMS-HAP projects emissions, by adjusting point,
            area and mobile emission data to account for growth and emission reductions resulting from emission
            reduction scenarios such as the implementation  of the Maximum  Achievable  Control Technology
            (MACT) standards.

Reduce SO2 Emissions

In 2005     Keep  annual emissions below level authorized by allowance holdings and make progress towards
            achieving the year  2010 SO2 emissions cap for  utilities.  Annual emissions reduction target is 6.9
            million tons from the 1980 baseline.

In 2004     Maintain or increase annual SO2 emission reduction of approximately 5 million tons from the 1980
            baseline. Keep annual emissions  below level authorized by allowance holdings and make progress
            towards achievement of Year 2010 SO2 emissions cap for utilities.

In 2003     End of year 2003 data will be  available in the last quarter of 2004 to verify that annual emissions
            reduction of approximately 5 million tons from utility sources were maintained or increased during
            2003.

Performance Measures:                     FY2003        FY2004        FY2005
                                           Actuals        Pres. Bud.      Pres. Bud.
SO2 Emissions                                Data Lag      5,000,000        6,900,000     Tons
                                                                                          Reduced
Baseline:    The base of comparison for assessing progress on the annual performance goal is the 1980 emissions
            baseline. The 1980 SO2 emissions inventory totals 17.4 million tons for electric utility sources. This
            inventory was developed by National Acid Precipitation Assessment Program (NAPAP) and used as,
            the basis for reductions in Title IV of the Clean Air Act Amendments.  This data is also contained in
            EPA's National Air Pollutant Emissions Trends Report. Statutory SO2 emissions cap for year 2010
            and later is at 8.95 million tons which is approximately 8.5 million tons below 1980 emissions level.
            "Allowable SO2 emission level" consists of allowance allocations granted to sources each year under
            several provisions of the Act and additional allowances carried over, or banked, from previous years.

Reduce NOx Emissions

In 2003     End of year 2003 data will be available in Summer 2004 to verify that the Agency has achieved the
            annual emission reduction goal.
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Performance Measures:

NOx Reductions
FY 2003
Actuals
   Data Lag
 FY2004
Pres. Bud.
 FY2005
Pres. Bud.
                                Tons
                                Reduced
Baseline:    Performance Baseline: The base of comparison for assessing progress on this annual performance goal
            is emissions that would have occurred in the absence of Title IV of the Clean Air Act Amendments.

Reduce Exposure to Unhealthy Ozone Levels - 1 Hour

In 2005     The number of people living in areas with monitored ambient ozone concentrations below the NAAQS
            for the 1-hour ozone standard will increase by 4% (relative to 2004) for a cumulative total of 53%
            (relative to 1992).

In 2004     The number of people living in areas with monitored ambient ozone concentrations below the NAAQS
            for the 1-hour ozone standard will increase by 4% (relative to 2003) for a cumulative total of 47%
            (relative to 1992).

In 2003     Maintained healthy air quality for approx. 161.5 million people living in monitored areas attaining the
            ozone std; certified that 5 areas of the remaining 54 nonattainment areas have attained the 1-hour
            NAAQS for ozone thus increasing the no. of people living in areas with healthy air by 5.8 million.
Performance Measures:

Cumulative   Percent  Increase   in  the
Number of People who Live in Areas with
Ambient  1-hour  Ozone  Concentrations
Below  the  Level  of  the  NAAQS  as
Compared to 1992

Cumulative   Percent  Increase   in  the
Number  of Areas with Ambient 1-hour
Ozone Concentrations Below the Level of
the NAAQS as Compared to 1992

Total Number of People who Live in Areas
Designated to Attainment of the Clean Air
Standards for Ozone

Areas  Designated to Attainment for the
Ozone Standard

Additional  People   Living  in   Newly
Designated  Areas  with   Demonstrated
Attainment of the Ozone Standard

VOCs Reduced from Mobile Sources

NOx Reduced from Mobile Sources
FY2003        FY2004        FY2005
Actuals       Pres. Bud.      Pres. Bud.
   Data Lag             47              53
   Data Lag
         55
         40
  5,800,000       5,800,000       7,276,790



  1,900,000       2,040,000         855,624

  1,400,000       1,653,000       1,693,259
                                Percent
Percent
161,485,900     167,300,000     174,562,000     People
                                Areas


                                People



                                Tons

                                Tons
Baseline:    The 1992 baseline for population is the population in areas not classified or designated as attainment
            for the clean air national ambient air quality standards. The 1992 baseline for areas is those areas that
            are designated as non-attainment of the NAAQs.  Through FY 2003, 161,485,905 are living in areas
            designated to attainment; 51 areas  are designated to attainment  for this/these pollutants.  The 2000
            MOBILE 6 inventory is used as the baseline year for mobile source emissions as of FY 2005.  The
            2000 baseline for VOC emissions is 7.7 million tons; the baseline is 11.8 million tons.  The 2000
            MOBILE 6 inventory is used as the baseline year for mobile source emissions as of FY 2005.  The

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            2000 baseline for VOC emissions is 7.7 million tons; the baseline is 11.8 million tons.  Beginning in
            FY 2004, EPA changed the basis for evaluating progress for this measure to reflect actual measured
            levels of air quality. Previously, EPA had not defined an area as having clean air until the area was
            formally  classified  as  having  met health-based  standards.   The  procedural  requirements  for
            classification may require a year or more to complete. The previous total population numbers were for
            2000 - 33.4 million (m) 2001 - 382.m; 2002 - 41.7m; 2003 - 47.8m.

Reduce Exposure to Unhealthy PM Levels - PM-10

In 2005     The number of people living in areas with monitored ambient PM concentrations below the NAAQS
            for the PM-10 standard will increase by 1% (relative to 2004) for a cumulative total of 7% (relative to
            1992).

In 2004     The number of people living in areas with monitored ambient PM concentrations below the NAAQS
            for the PM-10 standard will increase by 1% (relative to 2003) for a cumulative total of 6% (relative to
            1992).

In 2003     Maintained healthy air quality for 120 million people living in monitored  areas attaining the PM
            standards; increased by 252 thousand the number of people living in areas with healthy air quality that
            have newly attained the standard.
Performance Measures:

Cumulative   Percent   Increase  in  the
Number of People who Live in Areas with
Ambient PM-10 Concentrations Below the
Level of the NAAQSas Compared to 1992

Cumulative   Percent   Increase  in  the
Number of Areas with Ambient PM-10
Concentrations Below the  Level of the
NAAQSas Compared to 1992

Total Number of People who Live hi Areas
Designated in Attainment with Clean Air
Standards for PM

Areas Designated  to  Attainment  for the
PM-10 Standard

Additional  People  Living   in  Newly
Designated  Areas  with   Demonstrated
Attainment of the PM Standard
PM-10 Reduced from Mobile Sources

PM-2.5 Reduced from Mobile Sources
FY 2003        FY 2004        FY 2005
Actuals       Pres. Bud.      Pres. Bud.
   Data Lag              6               7     Percent
   Data Lag
     40
    50     Percent
120,379,036     120,700,000      122,308,000     People
          5


    252,387



     25,000

     18,000
                            Areas
380,000       1,549,648     People
 18,000
 13,500
62,161     Tons

61,217     Tons
Baseline:        The  1992 baseline for population is the population in areas not classified or designated  as
                attainment for the clean air national ambient air quality standards.  The 1992 baseline for areas is
                those areas that are designated as non-attainment of the NAAQs. Through FY 2003, 120,379,036
                are living in areas designated to attainment; 5 areas are designated to attainment for this/these
                pollutants. The 1995 baseline for PM-10 reduced from mobile sources is  880,000 tons.   The
                2000 MOBILE 6 inventory is used as the baseline for mobile source emissions as of FY 2005.
                The 2000 baseline for PM 2.5 from mobile sources is 500,000 tons; the 2000 baseline for PM 2.5
                from mobile sources is 613,000 tons.   Beginning  in  FY  2004, EPA changed the basis for
                evaluating progress fro this measure to reflect actual measured levels of air quality.  Previously,
                EPA had not defined an area as having clean air until the area was formally classified as having
                met health-based standards.  The procedural requirements for classification may require a year or
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               more to complete.  The previous total population numbers were for 2000 - 1.2 million (m) 2001 -
               1.2m; 2002 - 3.4m; 2003 - 6.2m.

Reduce Exposure to Unhealthy CO, SO2, NO2, Lead

In 2005     The number of people  living in areas with monitored ambient CO, NO2, SO2, or Pb concentrations
            below the NAAQS will increase by less than 1% (relative to 2004) for a cumulative total of 53%
            (relative to 1992).

In 2004     The number of people  living in areas with monitored ambient CO, NO2, SO2, or Pb concentrations
            below the NAAQS will increase by 4% (relative to 2003) for a cumulative total of 53% (relative to
            1992).

In 2003     Maintained healthy air quality for 53 million people living in monitored areas attaining the CO, SO2,
            NO2, and Lead standards; increased by .74 million the number of people living in areas with healthy
            air quality that have newly attained the standard.
Performance Measures:

Cumulative  Percent  Increase  in  the
Number of People who Live in Areas with
Ambient  CO,   SO2,   NO2,   or  Pb
Concentrations Below the  Level of the
NAAQS as Compared to 1992

Cumulative  Percent  Increase  in  the
Number of Areas with Ambient CO, SO2,
NO2, or  Pb Concentrations  Below  the
Level of the NAAQS as Compared to 1992

Total Number  of  People  Living in Areas
Designated in Attainment with Clean Air
Standards for CO,  SO2, NO2, and Pb

Areas Designated to Attainment for the
CO, SO2, NO2, and Pb Standards

Additional   People   Living  in   Newly
Designated  Areas  with  Demonstrated
Attainment of the  CO, SO2, NO2, and Pb
Standards

CO Reduced from Mobile  Sources

Total Number  of  People  Living in Areas
with Demonstrated Attainment of the NO2
Standard
FY2003
Actuals
 FY2004
Pres. Bud.
 FY2005
Pres. Bud.
                        53
                         53     Percent
                        87
                         77     Percent
167,860,905      174,000,000     174,222,000     People
                        19
    435,309       6,150,000
                 12,636,000

                        n/a
                          8     Areas
                    209,991     People
                   -841,971     Tons

                        n/a     People
Baseline:        The 1992  baseline for population is the population in  areas not classified or designated  as
                attainment for the clean air national ambient air quality standards.  The 1992 baseline for areas is
                those areas that are designated as non-attainment of the NAAQs. Through FY 2003, 167,860,905
                are living in areas designated to attainment; 108 areas are designated to attainment for this/these
                pollutants.  The 1995 baseline for mobile source emissions for CO was 70,947,000 tons.  For
                mobile sources, the 2000 MOBILE 6 inventory is used as the baseline for FY 2005; the 2000
                baseline for CO emissions is 79 million tons.  While on-road CO emissions continue to decrease,
                there is an overall increase in mobile source CO emissions due  to a growth in nonroad CO.
                Beginning  in FY 2004, EPA changed the basis for evaluating progress fro this measure to reflect
                actual measured levels of air quality. Previously, EPA had not defined an area as having clean air
                until the area was formally classified as having  met health-based standards.  The procedural
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               requirements  for classification may require a year or more to complete.   The previous total
               population numbers were for 2000 - 27.7 million (m) 2001 - 36.3m; 2002 - 36.7m; 2003 - 53.7m.

Reduce Exposure to Unhealthy Ozone Levels - 8 Hour

In 2005     The number of people living in areas with monitored ambient ozone concentrations below the NAAQS
            for the 8-hour ozone standard will increase by 4% (relative to 2004)  for a cumulative total of 7%
            (relative to 2001).

In 2004     The number of people living in areas with monitored ambient ozone concentrations below the NAAQS
            for the 8-hour standard will increase by 3% (relative to 2003) for a cumulative total of 3% (relative to
            2001).
 Performance Measures:

 Cumulative Percent Increase in the Number of
 People who Live in Areas with Ambient 8-hour
 Concentrations Below the Level of the NAAQS
 as Compared to 2001

 Cumulative Percent Increase in the Number of
 Areas   with    Ambient    8-hour    Ozone
 Concentrations Below the Level of the NAAQS
 as Compared to 2001
                                   FY2003
                                    Actuals
 FY2004
Pres. Bud.
 FY2005
Pres. Bud.
                                                        <1
                       <1
                                                                               Percent
                Percent
Baseline:       EPA will designate the attainment status for areas in April 2004.  With that data, we will have the
               population baseline as well as the number of areas that are not in attainment for the 8-hour ozone
               standard.
Reduce Exposure to Unhealthy PM Levels - PM- 2.5
In 2005
In 2004
In 2003
The number of people living in areas with monitored ambient PM concentrations below the NAAQS
for the PM-2.5 standard will increase by 1% (relative to 2003) for a cumulative total of less than 1%
(relative to 2001).

The number of people living in areas with monitored ambient ozone concentrations below the NAAQS
for the PM-2.5 standard will increase by 1% (relative to 2003) for a cumulative total of less than 1%
(relative to 2001).
Performance Measures:

Cumulative Percent Increase hi  the Number of
People who Live in Areas with Ambient PM-2.5
Concentrations Below the Level  of the NAAQS
as Compared to 2001

Percent Increase in the Number of Areas with
Ambient PM-2.5 Concentrations Below the Level
of the NAAQS as Compared to 2001
                                    FY2003
                                    Actuals
 FY2004
Pres. Bud.
         1
 FY2005
Pres. Bud.
                                                                         1
                Percent
                                                                              Percent
Baseline:    EPA will designate the attainment status for areas in FY 2005.  With that data, we will have the
            population baseline as well as the number of areas that are not in attainment for the PM-2.5 standard.
Increase Tribal Air Capacity
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In 2004     Increase the number of tribes monitoring air quality for ozone and/or particulate matter from 42 to 45
            and increase the percentage of tribes monitoring clean air for ozone from 64% to 67% and particulate
            matter from 71% to 72%.

In 2003     39 tribes monitored air quality for ozone and/or particulate matter; 66% of tribes monitored clean air
            for ozone and 68% monitored for particulate matter.
Performance Measures:

Percent of Tribes  with Tribal  Lands
Monitoring for Ozone and/or  Particulate
Matter

Percent of Monitoring Tribes Monitoring
Clean Air for Ozone

Percent of Monitoring Tribes Monitoring
Clean Air for Particulate Matter

Number  of  Tribes  Implementing  Air
Programs
                               FY2003
                                Actuals
                                  39 tribes
                                        66
                                        68
 FY2004
Pres. Bud.
         13
         67
         72
                                                        30
 FY2005
Pres. Bud.
                Percent
                 Percent
                 Percent
                                Tribes
Baseline:
Acid Rain

In 2005

In 2005

In 2004


In 2004
    There are 570 Federally recognized Tribes with 341 Tribes having Tribal lands (Alaska Native
    Villages  (Tribes) number 229  entities but only one 'reservation").  During 2003, 39 Tribes
    conducted monitoring for ozone and/or particulate matter 15 Tribes monitored their airsheds for
    ozone (10 of which recorded clean air), and 37 Tribes monitored for particulate matter (25 of
    which recorded  clean air).  EPA will continue to work with  the Tribes to increase the number
    and/or percentage of Tribes that monitor for clean air.
Reduce total annual average nitrogen deposition and ambient nitrate concentrations 5% from baseline.

Reduce total annual average sulfur deposition and ambient sulfate concentrations 27% from baseline.

Reduce total annual average nitrogen deposition and mean ambient nitrate concentrations 5% from
baseline.

Reduce total annual average sulfur deposition and mean ambient sulfate concentrations 25% from
baseline.
Performance Measures:

Total Annual Average Sulfur  Deposition
and   Ambient    Sulfate   concentrations
reduced (percent from baseline)
Total Annual Average Nitrogen Deposition
and   Ambient    Nitrate   concentrations
reduced (percent from baseline)
                               FY2003
                                Actuals
 FY2004
Pres. Bud.
    25
 FY2005
Pres. Bud.
    27
Baseline:        Sulfur and nitrogen deposition contribute to acidification of lakes and streams, making them
                unable  to support fish and other  aquatic life.   Reductions in both total sulfur  and nitrogen
                deposition is critical to reducing the number of chronically acidic water bodies. Ambient sulfate
                and ambient nitrate ("acid rain particulate") contributes to unhealthy air and respiratory problems
                in humans, especially children and other sensitive populations.  The baseline is established from
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             monitored site levels based on consolidated map of 1989-1991 showing a three year of deposition
             levels produced from the CASTNet site (http://www.epa.gov/airmarkets/casmet/sites.html).
VERIFICATION AND VALIDATION OF PERFORMACE MEASURES

FY 2005 Performance Measure:

•   Combined Stationary and Mobile Source Reductions in Air Toxics Emissions
•   Mobile Source Air Toxics Emissions Reduced
•   Stationary Source Air Toxics Emissions Reduced
•   All Other Air Toxics Emissions Reduced

Performance Database: National Emissions  Inventory (NEI) for Hazardous Air Pollutants
(HAPs)

Data Source:  The  NEI for HAPs includes emissions from large and small industrial sources
inventoried as point  sources, smaller stationary area and other sources, such as fires inventoried
as non-point sources, and mobile sources.

Prior to 1999 NEI for HAPs, there was the National Toxics Inventory (NTI). The baseline NTI
(for base years 1990 - 1993) includes emissions information for  188 hazardous  air pollutants
from more than 900 stationary sources and from mobile sources.  It is based on data collected
during the development of Maximum Achievable Control Technology (MACT) standards, state
and local data, Toxics Release Inventory (TRI) data, and emissions estimates using accepted
emission inventory methodologies.  The baseline NTI contains county level emissions data and
cannot be used for modeling because it does not contain facility specific data.

The 1996 NTI and the 1999 NEI for HAPs contain stationary and mobile source estimates that
are used as input to National Air Toxics  Assessment (NATA) modeling.  The 1996 NTI and
1999 NEI  for HAPs  contain estimates of facility-specific HAP emissions and their source
specific parameters necessary for modeling such as location (latitude and longitude) and facility
characteristics (stack height, exit velocity, temperature, etc.)

The primary sources of data in the 1996 and 1999 NTI are state and local air pollution control
agencies and Tribes. These  data vary in completeness, format, and quality. EPA evaluates these
data and supplements them with  data gathered while  developing MACT and  residual risk
standards, industry data, and TRI data. To produce a complete model-ready national inventory,
EPA estimates emissions for approximately 30 non-point source categories such as wildfires and
residential heating sources not included in the state, local and Tribal data. Mobile source data
are developed using data provided by state and local agencies and Tribes and the most current
onroad and nonroad models developed by EPA's Office of Transportation and Air Quality. The
draft 1996 NTI and  1999 NEI for HAPS underwent extensive review by state and local agencies,
Tribes, industry, EPA, and the public.

For more  information and references on the development of the 1996 NTI, please go to  the
following  web site:  www.epa.gov/ttn/chief/nti/rndex.htmltfnti.    For more information and
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references on the development of the 1999 NEI for HAPs, please go to the following web site:
www.epa.gov/tfti/chief/net/mdex.htmlffl999

Methods, Assumptions and Suitability:   The EMS-HAP (Emissions Modeling System for
Hazardous Air Pollutants) is used to estimate annual emissions of ah" toxics for the 1996 NTI and
1999 NEI for HAPS (and for all years in-between). EMS-HAP is an emissions processor that
performs the steps needed to process an emission inventory for  input into the NATA model.
These steps include: spatial allocation of nonpoint stationary area and mobile source emissions
from the county level to the census tract level, and temporal allocation of annual emission rates
to annually averaged (i.e., same rate for every day of the year) 3-hour emission rates. In addition,
EMS-HAP can project future emissions, by adjusting stationary source emission data to account
for growth and emission reductions resulting  from emission  reduction scenarios such as the
implementation of the Maximum Achievable Control Technology (MACT) standards.

For more information and references on EMS-HAP, please go to the following web  sites:
http://www.epa,gov/scramQ01/tt22,htm#asp.enand
              ,g^^
The growth and reduction information used for the projections are  further described on the
following website: http://www.epa.gov/ttn/chief/emch/proiection/emshap.html

QA/QC  Procedures:   The NTI and the  NEI  for HAPs are databases designed to house
information from other primary sources.  The EPA performs extensive quality assurance/quality
control (QA/QC) activities, including checking data provided by other organizations, to improve
the quality of the emission inventory.  Some of these activities include:  (1) the use of an
automated format QC tool to identify potential errors of data integrity, code values, and range
checks; (2) use of geographical information system (GIS) tools to verify facility locations; and
(3) automated content  analysis by pollutant, source category and facility to identify potential
problems with emission estimates such as outliers, duplicate sites, duplicate emissions, coverage
of a source category, etc.  The content analysis includes a variety of comparative and statistical
analyses.   The comparative analyses help reviewers prioritize  which source categories and
pollutants to review in more detail based on comparisons using current inventory data and prior
inventories. The statistical analyses help reviewers identify potential  outliers by providing the
minimum,  maximum,  average, standard deviation, and  selected percentile values based on
current data.  The EPA is currently developing an automated QC content tool for data providers
to use prior to submitting their data to EPA.  After investigating errors identified using the
automated QC format and GIS tools,  the EPA follows specific guidance on augmenting data for
missing  data   fields.     This  guidance   is   available  at  the  following   web   site:
http:/yw\^v.epa.gov/ttn//chie£/enicii/invent/qaaugmementationmemo99nei 60603.pdf

The NTI database contains data fields that indicate if a field has been augmented and identifies
the  augmentation  method.  After performing the content analysis, the EPA contacts  data
providers to reconcile potential errors. The draft NTI is posted for external review and includes
a README file, with instructions on review of data and submission of revisions, state-by-state
modeling files with all modeled data fields, and summary files to assist in the review of the data.
One of the summary files includes  a comparison of point source data submitted  by different
organizations.  During the external review of the data, state and local agencies, Tribes, and
industry  provide external  QA of the inventory.  The EPA evaluates proposed revisions from
external  reviewers and prepares memos for individual reviewers documenting incorporation of

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revisions and explanations if revisions were not incorporated.  All revisions are tracked in the
database with the source of original data and sources of subsequent revision.

The external QA and the internal QC of the inventory have resulted in significant changes in the
initial emission estimates, as seen by comparison of the initial draft NEI for HAPs and its final
version.  For more information on QA/QC of the NEI for HAPs, please refer to the following
web site for a paper presented at the 2002 Emission Inventory Conference in Atlanta. "QA/QC -
An Integral Step in the Development of the 1999 National Emission Inventory for HAPs", Anne
Pope, et al. www.epa.gov/ttn/cMefycotrference/eill/qa/pope.pdf

EPA's Office of Environmental Information  (OEI)  has created uniform data standards  or
elements,  which provide "meta" information on the standard NEI Input Format (NIF) fields.
These standards were developed by teams representing states, Tribes, EPA and other Federal
agencies.  The use of common data standards among partners fosters consistently defined and
formatted data elements and sets of data values, and provides public access to more meaningful
data.  The standards relevant to the NEI for HAPs  are the: SIC/NAICS, Latitude/Longitude,
Chemical  Identification, Facility Identification,  Date, Tribal  and  Contact Data Standards.  The
1999 NEI for HAPs is  compliant with all new  data standards except  the Facility Identification
Standard because OEI  has  not completed its assignment of Facility  IDs to the 1999 NEI for
HAPs facilities.

For more information on compliance of the NEI for HAPs with new OMB Information Quality
Guidelines and new EPA data  standards, please refer to the  following web site for a paper
presented at the 2003 Emission Inventory Conference hi San Diego. "The Challenge of Meeting
New EPA Data Standards and Information Quality Guidelines in the  Development of the 2002
NEI Point Source Data for HAPs", Anne Pope, et al.
u^av.epa.gov/ttn/chief/conference/ei 12/drn/pope.pdf

The 2002 NEI for HAPs will undergo scientific peer review.

Data  Quality Review:  EPA staff, state and  local agencies, Tribes, industry and the public
review the NTI and the NEI for HAPs. To assist in the review of the 1999 NEI for HAPs, the
EPA provided a comparison of data from the three data sources (MACT/residual risk data, TRI,
and state, local and Tribal inventories) for each facility. For the 1999 NEI for HAPs, two periods
were available for external  review - October 2001 - February 2002 and October 2002  - March
2003.

Both  the  full draft  1996  National  Air  Toxics  Assessment and several of  the individual
components of the assessment have been subjected  to  the  scrutiny of leading scientists
throughout the country  hi a process called "scientific peer review." This ensures that EPA uses
the best available scientific methods and information.  In 2001, EPA's Science Advisory Board
(SAB) reviewed the 1996 national-scale assessment. The review was generally supportive of the
assessment purpose, methods, and presentation; the committee considers this an important step
toward  a better understanding of air toxics.  Many of the SAB comments related to  possible
improvements for future assessments (additional national-scale assessments are being planned
for the base year 1999  and for every 3 years thereafter) and raised technical issues that would
merit further investigation. EPA will follow up on these issues.  Additional  information is
available on the Internet: www.epa.gov/ttn/atw/nata/peer.html.

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The following describes the various scientific peer review activities that are associated with the
1996 national air toxics assessment:

•  EPA's Science Advisory Board peer-reviewed the ASPEN dispersion model used in the
   Cumulative  Exposure Project  (CEP). The Science Advisory Board issued their report  in
   1996. It can be found at http://wmv.epa.gov/sab/fiscal96.htai.

•  The HAPEM  exposure model  underwent a peer review by EPA scientists and an external
   peer review in the  summer of 2000. While the peer review identified several limitations
   inherent in the current methodology, it is still acknowledged as an appropriate tool to help
   better understand the relation of human exposures to ambient concentration levels.

Data Limitations: The NTI and the NEI for HAPs contain data from other primary references.
Because of the different data sources, not all information in the NTI and the NEI for HAPs has
been developed using  identical methods.  Also, for  the same reason, there are likely some
geographic areas with more detail and accuracy than others. Because of the lesser level of detail
in the 1993 NTI, it is not suitable for input to dispersion models.

For a discussion of the  data limitations in the  1999 NEI for HAPs, please refer to the discussion
of Information Quality Guidelines in the documentation at:
wwwr.epa.gov/ttn/chief/net/index.html#haps99 .

New/Improved Data or Systems:  The 1996 NTI and 1999 NEI for HAPs are a significant
improvement over the baseline 1993 NTI because of the added facility-level detail (e.g., stack
heights, latitude/longitude locations), making  it more useful for dispersion model input.  Future
inventories (2002 and later years) are expected  to improve significantly because of increased
interest in the NEI for HAPs by regulatory agencies, environmental interests, and industry, and
the greater potential for modeling and trend analysis. During the development of the 1999 NEI
for HAPs, all primary  data submitters and reviewers were required to submit their data and
revisions to EPA  in a standardized format using the Agency's Central Data Exchange (CDX).
For    more    information   on    CDX,    please    go   the    following    web    site:
www.epa.gov/ttn/chief/nif/cdx.html

References:  The  NTI and NEI data and documentation are available at the following sites:

ftp site:                    ftp:/yftp.epa.gov/EmisInventorv/
Available inventories:        1996 NTI, 1999 NEI for HAPs
Contents:                   Modeling data files for each state
                           Summary data files for nation
                           Documentation
                           README file
Audience:                  individuals who want full access to NTI files

NEON:                    http://ttnwww.ripnc.epa.goy/Neon/
Available inventories:        1996 NTI and 1999 NEI for HAPs
Contents:                   Summary data files
Audience:                  EPA staff
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CHIEF:                   mvw.epa.gQy/ttn/chief
                          1999 NEI for HAPs data development materials
                          1999 Data Incorporation Plan - describes how EPA compiled the
                             1999 NEI for HAPs
                          QC tool for data submitters
                          Data Augmentation Memo describes procedures EPA will use to
                             augment data
                          99 NTI Q's and A's provides answers to frequently asked
                             questions
                          NIF (Input Format) files and descriptions
                          CDX Data Submittal Procedures - instructions on how to submit
                             data using CDX
                          Training materials on development of HAP emission inventories
                          Emission factor documents, databases, and models
Audience:                 State and local agencies, Tribes, industry, EPA, and the public
FY 2005 Performance Measures:
       emissions reduced (tons/year from baseline)
•  Total  annual average  sulfur deposition and mean ambient sulfate concentrations
   reduced (% from baseline)
•  Total  annual average nitrogen  deposition and  mean ambient nitrate concentrations
   reduced (% from baseline)

Performance Databases:

•  Emissions Tracking System (ETS) - SOi and NOx emissions collected by Continuous
   Emission Monitoring Systems (CEMS) or equivalent continuous monitoring methods.
•  Clean  Air Status and Trends Network (CASTNet)  - dry acid deposition; weekly average
   ambient  concentrations of sulfate,  nitrate,  sulfur  dioxide, nitric  acid,  ammonium;
   meteorological data required for calculating deposition rates.
•  National Atmospheric  Deposition  Program (NADP) - wet  acid  (sulfur  and nitrogen)
   deposition.

Data Sources:  On a quarterly basis,  ETS receives and processes hourly measurements of SO2,
NOX, volumetric flow, COa, and other emission-related parameters from more than 2,500 fossil
fuel-fired  utility units affected under  the Title IV Acid Rain Program.  For the 5-month ozone
season (May  1 - September. 30), ETS receives and processes hourly NOX measurements from
electric generation units (EGUs) and  certain large industrial combustion units affected by NOX
Budget Programs under the NOX State Implementation Plan (SIP) Call.  In 2004, the initial
compliance year for the NOX SIP Call, up to 2000 units in as many as 20 states and D.C. will be
reporting seasonal NOX data to ETS.  Over 900 units have been reporting these data since 1999
under the OTC NOX Budget Program.
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CASTNet measures  particle  and gas acidic deposition chemistry.  Specifically,  CASTNet
measures sulfate and nitrate dry deposition and meteorological information at approximately 70
monitoring sites, primarily in the East. CASTNet is a long-term dry deposition network funded,
operated and maintained by EPA's Office of Air and Radiation (OAR).

NADP is a national long-term wet deposition network that measures precipitation chemistry and
provides long-term  geographic  and temporal trends in concentration and  deposition  of
precipitation components.  Specifically, NADP provides measurements of sulfate and nitrate wet
deposition  at approximately 230 monitoring sites.   EPA, along with  several other Federal
agencies, states,  and  other private organizations, provide funding and support for NADP.  The
Illinois State Water Survey/University of Illinois maintains the  NADP database.

The deposition monitoring networks have been in operation for over 25  years.  They provide
invaluable measurements on long-term trends and episodes in acid deposition; such data are
essential for  assessing progress toward the program's  intended environmental and welfare
outcomes.  These networks are aging  and need to be modernized to ensure the  continued
availability of these direct environmental measures. Much of the equipment is beyond its useful
life,  replacement parts are difficult  to  procure, and the  data processing  is outmoded  and
expensive.  To date,  modernization of this network has not been considered a priority. Unless
this situation changes, the Agency's ability to assess long-term performance measures will be
compromised.

Methods, Assumption, and Suitability: Consistent, well-defined methods for data aggregation
and monitor tests have been incorporated into program regulations (40 CFR Part 75 (Continuous
Emissions Monitoring).   Original final rule issued  58 FR 3701-3757 (Jan 11,  1993).   Rule
revisions to improve program issued 60 FR 26510 (May 17, 1995), 61 FR 59142 (Nov 20, 1996),
63 FR 57356, 573581 and 57499 (Oct 27, 1998), 64 FR 28564  (May 26, 1999), and 67 FR 40394
(June 12, 2002)).that were promulgated in  notice and comment (public) rulemakings.  These
methods are used to aggregate data across  all affected utilities for each pollutant and related
source operating parameters.  They specify how to calculate the  baseline and test for quality
assurance.

QA/QC Procedures: QA/QC requirements in the program regulations require that a series of
quality assurance tests are performed  at least annually to assure valid CEMS performance.  For
these tests, emissions data are collected under highly structured,  carefully designed testing
conditions, which  involve  either high quality  standard  reference  materials  or multiple
instruments performing simultaneous  emission measurements. The  resulting data are screened
and analyzed using a battery of statistical procedures, including one that tests for systematic bias.
If a CEM fails the bias test, indicating a potential for systematic underestimation of emissions,
the source of the error must be identified and corrected or the data are adjusted to compensate for
the   measurement   bias.      Further   information   available    on   the   Internet:
http://www.epa.gov/airmarkets/reporting/index.html

CASTNet established a Quality Assurance Project Plan (QAPP) in November 2001; The QAPP
contains data quality  objectives and quality control procedures  for accuracy and precision.  {U.S.
EPA, Office  of Air  Quality Planning and  Standards, Clean Air Status  and Trends Network
(CASTNet) Quality Assurance Project Plan (Research Triangle Park, NC:  U.S. EPA, November
2001). Available at http://www.epa,gQv/castnet/l.ibrary/qapp.htnil.

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NADP has established data quality objectives and quality control procedures for accuracy,
precision and representation, available on the  Internet: http://nadp.sws.uiuc.edu/QA/.  The
intended use  of these data is to establish  spatial and temporal trends  in wet  deposition and
precipitation chemistry.

Data Quality Review:   The  ETS provides  instant feedback to  sources on  data reporting
problems, format errors^ and inconsistencies. The electronic data file QA checks are described at
http://www.epa.gov/aiiinarkets/reportmg/index.html  (see  Electronic'  Data  Report  Review
Process, ETS Tolerance Tables, Active ETS Error Codes/Messages and Range Format Errors},
All quarterly  reports are  analyzed to detect deficiencies and to identify reports that must  be
resubmitted to correct problems. EPA also identifies reports that  were not  submitted by the
appropriate reporting deadline.  Revised quarterly reports, with corrected deficiencies found
during the data review process, must be obtained from sources by a specified deadline. All data
are reviewed, and preliminary and final emissions data reports are  prepared for public  release
and compliance determination.

CASTNet underwent formal peer review in 1997 by a  panel of scientists from EPA and the
National Oceanographic Atmospheric  Administration (NOAA).  Findings are  documented in
Examination of CASTNet: Data, Results, Costs, and Implications (United States  EPA, Office of
Research and Development, National Exposure Research Laboratory, February  1997).

The NADP methods  of  determining  wet  deposition  values have undergone  extensive peer
review, handled entirely by the NADP housed at the Illinois State Water Survey/University of
Illinois.   Assessments of changes  in NADP methods  are developed  primarily through the
academic community and reviewed through the technical literature process.

Data Limitations:  In order to improve the spatial resolution of CASTNet, additional monitoring
sites are needed. CASTNet has no geographic  coverage for the middle of the  country and very
limited coverage in the Northwest.

Error Estimate: None

New/Improved Data  or  Systems:  EPA is investigating ways to modernize aging CASTNet
equipment; streamline site operation, data  collection and processing methods;  reduce  system
operating costs; and provide a foundation for mutipollutant measurement compatible with other
networks.

References:  For additional information about CASTNet, see http://www.epa.gov/castnet/ and
for NADP, see http://nadp.sws.uiuc.edu/. For a description of EPA's Acid Rain program, see
http://www.epa.gov/airrnarkets/arp/mdex.htrnl/ and hi the electronic Code of Federal Regulations
at http://www.epa.gov/docs/epacfr40/chapt-I.info/subch-C.htm (40 CFR parts 72-78.)
FY 2005 Performance Measures:

•   Cumulative percent increase in the number of people who live in areas with ambient
    criteria pollutant concentrations below the level of the NAAQS.

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•  Cumulative percent increase in the number of areas with ambient criteria pollutant
   concentrations below the level of the NAAQS.
•  Areas designated to attainment for the NAAQS.

Performance Databases:
AQS —The Air Quality Subsystem (AQS) stores ambient air quality data used to evaluate an
area's air quality levels relative to the NAAQS.

FREDS—The Findings and Required Elements Data System is used to track progress of states
and Regions in reviewing and approving the required data elements of the State Implementation
Plans (SIP). SIPs are clean air plans and define what actions a state will take to improve the air
quality in areas that do not meet national ambient air quality standards

Data Sources:
AQS:  State & local agency data from State and Local Air Monitoring Stations (SLAMS).

Population: Data from Census-Bureau/Department of Commerce

FREDS:   Data are provided by EPA's Regional offices.

Methods, Assumptions, and Suitability: Air quality levels are evaluated relative to the level of
the appropriate NAAQS. Next the populations in areas with ah- quality concentrations above the
level of the NAAQS are aggregated. This analysis assumes that the populations of the areas are
held constant at 2000 Census levels. Data comparisons over several years allow assessment of
the air program's success.

QA/QC Procedures:  AQS: The QA/QC of the national air monitoring program has several
major components: the Data Quality Objective (DQO) process, reference and equivalent methods
program, EPA's  National  Performance Audit Program  (NPAP), system audits, and network
reviews (Available on the Internet:  www.epa.gov/ttn/amtic/npaplist.html)  To ensure quality
data, the SLAMS are required to meet the following: 1) each site must meet network design and
site criteria; 2) each site must provide adequate QA assessment, control, and corrective action
functions according to minimum program requirements; 3) all sampling methods and equipment
must meet EPA reference or equivalent requirements;  4) acceptable data validation and record
keeping procedures  must be followed; and 5)  data from SLAMS must be  summarized and
reported annually to EPA.  Finally,  there are system audits that regularly review the overall air
quality data collection  activity for any needed changes  or  corrections.   Further information
available on the Internet:  http://www.epa.gov/cludygxb/programs/namslam.html  and through
United States EPA's Quality Assurance Handbook (EPA-454/R-98-004 Section 15)

Populations:  No additional QA/QC beyond that done by the Census Bureau/Department of
Commerce.

FREDS:     No formal QA/QC procedures.

Data Quality Review:
AQS:        No external audits have been done in the last 3 years.  However, internal audits
             are regularly conducted.

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Populations:  No additional QA/QC beyond that done by the Census Bureau/Department of
             Commerce.

FREDS:      None

Data Limitations:
AQS:        None known

Populations:  No additional QA/QC beyond that done by the Census Bureau/Department of
Commerce.

FREDS:      None known

Error Estimate:  At this time it is not possible to develop an error estimate.  Uncertainty in
projections (from modeling) and near term variations in  air quality (due to  meteorological
conditions for example) exist.

New/Improved Data or Systems:
AQS: In  January 2002, EPA completed the reengineering of AQS to make  it a more user
friendly, Windows-based system. As a result, air quality data will be more easily accessible via
the Internet. AQS has also been enhanced to comply  with the Agency's data  standards (e.g.,
latitude/longitude, chemical nomenclature).  Beginning in July 2003,  agencies submitted air
quality data to AQS thru the Agency's Central Data Exchange (CDX).  CDX is intended to be
the portal through which all environmental data coming to or leaving the Agency will pass.

Population:   None

FREDS:      None

References: For additional information about criteria pollutant data, non-attainment areas, and
other related information, see: http://www.epa.gov/airtrends/.

FY 2005 Performance Measures:

•   Estimated Mobile Source VOC Emissions
•   Estimated Mobile Source NOx Emissions
•   Estimated Mobile Source PM 10 Emissions
•   Estimated Mobile Source PM 2.5 Emissions
•   Estimated Mobile Source CO Emissions

Performance     Database:    National    Emissions     Inventory    Database.    See:
http://www.epa.gov/ttn/chief/trends/

Data Source:  Mobile source emissions inventories.  Estimates for on-road, off-road mobile
source emissions are built from inventories fed into the relevant models, which hi turn provide
input to the National Emissions Inventory Database.

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The MOBILE vehicle emission factor model is a software tool for predicting gram per mile
emissions of hydrocarbons, carbon monoxide, oxides of nitrogen,  carbon dioxide, particulate
matter, and toxics from cars, trucks, and motorcycles under various conditions.

The NONROAD emission inventory model is a  software  tool for predicting emissions of
hydrocarbons, carbon monoxide, oxides of nitrogen, particulate matter, and sulfur dioxides from
small and large off road vehicles, equipment, and engines.
Certain mobile source information is updated annually. Inputs are updated annually only if there
is a rationale and readily available source of annual data. Generally, Vehicle Miles Traveled
(VMT), the mix of VMT by type of vehicle (Federal Highway Administration (FHWA)-types),
temperature, gasoline properties, and the designs of Inspection/Maintenance (I/M) programs are
updated each year.  Emission factors for all mobile sources and activity estimates for non-road
sources are changed only when the Office of Transportation and Air Quality requests that this be
done and is able to provide the new information in a timely manner.  The most recent models for
mobile  sources  are  Mobile  6  and  Nonroad  2002.    (Available  on the  Internet  at
http://www.epa.gov/otaq/models.htm.)

Methods, Assumptions, and Suitability: EPA issues emissions standards that set limits on how
much pollution can be emitted from a given mobile source.  Mobile sources include vehicles that
operate on roads and highways ("on road" or "highway" vehicles), as well as nonroad vehicles,
engines,  and equipment.  Examples of mobile sources are cars, trucks,  buses, earthmoving
equipment, lawn and garden power tools, ships, railroad locomotives, and airplanes.  Vehicle and
equipment manufacturers have  responded  to  many mobile  source  emission standards  by
redesigning vehicles and engines to reduce pollution.

EPA  uses models to estimate mobile source emissions, for both past and future years.  The
estimates are used in a variety of different settings, like ralemaking.

The most  complete  and systematic  process for making  and recording  such mobile  source
emissions estimates is the "Trends" inventory process executed each year by the Office of Air
Quality Planning and Standards'  (OAQPS) Emissions, Monitoring,  and Analysis Division
(EMAD). The Assessment and Modeling Division, within the Office of Transportation  and Air
Quality, provides EMAD information and methods for making the mobile source estimates.  In
addition, EMAD's contractors obtain necessary information directly from other  sources; for
example,  weather data  and the Federal Highway  Administration's (FHWA) Vehicle Miles
Traveled  (VMT) estimates by state.   EMAD  creates and  publishes  the emission inventory
estimate for the  most recent historical year, detailed down to the county level and with  over 30
line items representing mobile sources. At irregular intervals as required for regulatory analysis
projects, EMAD creates estimates of emissions for future years.  When the method for estimating
emissions changes significantly, EMAD usually revises its older estimates  of emissions in years
prior to the most recent year, to avoid a sudden discontinuity in the apparent emissions trend.
EMAD publishes the national emission estimates  in hardcopy;  county-level estimates are
available electronically.   Additional information about transportation and  air quality related  to
estimating,  testing  for,  and measuring emissions,  as well as research  being conducted on
technologies for reducing emissions is available at http://www.epa.gov/otaq/research.htm
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QA/QC Procedures: The emissions inventories are continuously improved.

Data Quality Review: The emissions inventories are reviewed by both internal and external
parties.

Data Limitations:  The limitations of the inventory estimates for mobile sources come from
limitations  hi the modeled emission factors (based on emission factor testing and  models
predicting overall fleet emission factors in g/mile) and also hi the  estimated vehicle miles
traveled  for   each  vehicle   class     (derived   from  Department  of  Transportation
data).htip;//www.epa.gov/otaq/m6.htm.   For nonroad emissions,  the  estimates come  from a
model using equipment populations, emission factors per hour or unit of work, and an estimate
of usage. This nonroad emissions model accounts for over 200 types of nonroad equipment. Any
limitations in the input data will carry over into limitations in the emission inventory estimates.

Error  Estimate:  Additional information about data integrity is available on the Internet:
New/Improved Data or Systems:  To  keep pace with new analysis needs, new modeling
approaches, and new data, EPA is currently working on a new modeling system termed the
Multi-scale Motor Vehicles and Equipment Emission System (MOVES). This new system will
estimate emissions for on road and off road sources, cover a broad range of pollutants, and allow
multiple scale analysis, from fine scale analysis to national inventory estimation.  When fully
implemented, MOVES will serve as the replacement for MOBILE6 and NONROAD.  The new
system will not necessarily  be  a single piece of software, but instead  will encompass the
necessary tools, algorithms,  underlying data and  guidance necessary for use hi all official
analyses associated with regulatory development, compliance with statutory requirements, and
national/regional inventory projections.   Additional information is available on the Internet:
http://www.epa.gov/otaq/ngm.htm

References:     For  additional  information   about  mobile   source  programs   see:
http://www.epa.gov/otaq/.
EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLANS

       EPA continues to place a great emphasis on improving its set of performance measures.
In addition  to and complementing the Agency's outcome-based  environmental performance
measures, some programs  are  developing efficiency measures.    Efficiency measures  are
structured as a ratio of key program inputs (e.g. time, dollars, FTE) to program outputs or
outcomes. They are intended to provide EPA programs with additional information that can be
used for sound decision-making and program management.
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       Below are EPA's proposed efficiency measures for selected programs.

       Acid Rain

       EPA is in the process of developing efficiency measures to evaluate progress in reducing
transaction costs for Acid Rain and related  market-based programs.  These transactions cost
efficiencies deal with e-Gov practices and minimizing emissions data reporting transaction costs.
For example, the Agency plans by 2005 to reduce annual emissions and monitor certification
data reporting costs by 50% from approximately $4,000 per unit in the baseline year of 2000.

       Air Toxics

       EPA is working to improve long-term measures to better understand the risks from air
toxics. Currently we measure the tons of toxics reduced as a result of our programs.  To better
understand  the risks  we  are  reducing,  we   are   exploring  the potential  to  develop
measures/efficiency measures, indicators, including:

•      Toxicity-weighted emissions:   Using our  National Emissions  Inventory,  we would
estimate the tons of emissions reduced and then weight each air toxic by health criteria, such as
the Unit Risk Estimate.  With this weighted inventory, we would have a relative risk ranking of
the reductions, providing some indication of the degree  to which we are reducing the  most
harmful toxics.

•      Reductions  hi ambient  levels of toxics:   We are developing a  national air toxics
monitoring network and will use these sites as well as certain  existing state monitoring sites to
track  reductions in ambient levels of toxics  over tune.  These sites cover a defined set of air
toxics and will provide useful trend information over the  longer-term.

•      Reductions in risks across the population: As part of the National Air Toxics Assessment
(NATA)  that we update every three years, we can evaluate the cumulative risk levels for  the
general population from 32 air toxics and measure changes in these risk levels over tune  (e.g.,
number of people  below one  hi a million cancer risk).  Currently NATA  considers only
inhalation risks.

•      Local-scale risk reductions: We have several local-scale modeling and monitoring efforts
underway.  Through these assessments we can track changes hi risk levels over time for specific
geographic areas.  Unlike the other tools that we've developed  at this point, these local-scale
analyses may be able to consider multiple pathways of exposure, not just inhalation.

       Measure development is referenced hi the Program Assessment  Rating Tool (PART)
summary hi the Special Analysis section.

       Mobile Source Standards and Certification

       The Motor Vehicle and Engine Compliance Program  (MVECP) is responsible for  the
certification and compliance  of light-duty vehicles and trucks, heavy-duty highway vehicles and
engines, highway motorcycles, and certain non-road vehicles and engines.

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       A certificate of conformity is generally required when a manufacturer decides to market
new vehicles or engines in the United States.  Before issuing that certificate, EPA must perform
certain activities necessary to ensure compliance  with  regulations implemented  within the
MVECP.

       A possible efficiency measure could be the costs per certificate issued within each class
of vehicles and engines covered by the MVECP (e.g., light duty vehicles and trucks; non-road CI
engines; heavy-duty highway engines; etc.).

       School Bus Retrofits

       In FY 2005 EPA will collect and assess data from the FY 2003 and earlier school bus
demonstration projects to develop projections that relate funding levels to specific program
measures. This assessment will allow us to develop specific, outcome-oriented measures such as
the  overall number of buses that will be retrofitted each year, along with the associated emission
benefits.
COORDINATION WITH OTHER AGENCIES

       EPA cooperates with other Federal, state, Tribal, and local agencies in achieving goals
related to ground level ozone and PM. EPA continues to work closely with the Department of
Agriculture and the Forest Service in developing its burning policy and reviewing practices that
can reduce emissions. EPA, the Department of Transportation (DOT), and the Army Corps of
Engineers work with state and local agencies  to integrate transportation and air quality plans,
reduce traffic congestion, and promote livable communities.  EPA continues to work with the
Department of the Interior, National Park Service, in developing its regional haze program and
deploying the  IMPROVE visibility monitoring network.  The operation and analysis of data
produced by the PM monitoring system is an example of the close coordination of effort between
the EPA and state and Tribal governments.

       For pollution assessments and transport, EPA is working with the National Aeronautics
and Space Administration (NASA) on technology transfer using satellite imagery. In FY 2005,
EPA will be working to further distribute  NASA satellite products to  Regions,  states, local
agencies, and Tribes  to assist with PM forecasting and to provide better understanding  of air
quality on a day-to-day basis. EPA will also work with NASA in FY 2005 to develop a better
understanding  of PM formation using satellite data.   EPA works with the Department of the
Army, Department of Defense on advancing  emission measurement technology and with the
National Oceanic and Atmospheric Administration  (NOAA), Department of Commerce for
meteorological support for our modeling and monitoring efforts.

       To better understand the magnitude, sources, and causes of mobile source pollution, EPA
works with the Department of Energy (DOE)  and DOT  to fund research projects.  The DOT's
mobile source  projects include TRANSIMS (TRansportation ANalysis and SIMulation  System)
and other transportation modeling projects; DOE is funding these projects through the National
Renewable Energy Laboratory.  EPA also works closely with DOE on refinery cost modeling
analyses for EPA's clean fuel programs. For mobile sources  program outreach, the Agency is
participating in  a collaborative effort with DOT's Federal Highway Administration  and the

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Federal Transit Administration designed to educate the public about the impacts of transportation
choices on traffic congestion, air quality, and human health.  This community-based public
education initiative also includes the Centers for Disease Control.  In addition, EPA is working
with DOE to identify opportunities in the Clean Cities program.  EPA will also be working with
other Federal agencies such as the U.S. Coast Guard on air emission issues.  EPA works with the
Department of Energy (DOE) on several fuels programs. Other programs targeted to reduce air
toxics  from mobile sources are coordinated with the Department of Transportation (DOT).
These  partnerships can involve policy assessments and toxic emission reduction strategies in
different regions of the country.

       To develop new continuous source monitoring technology for toxic metals emitted from
smokestacks, EPA has partnered with the Department of Defense (DOD).  This partnership will
provide a new source monitoring tool that will streamline source monitoring requirements that a
number of DOD incinerators  are  required to  meet and improve the  operation  of DOD
incinerators with real-tune emissions information resulting in reduced releases of air toxics to the
environment. In time, this technology is expected to be available for use at non-DOD facilities.

       For the clean fuel programs, EPA works closely with the DOE on refinery cost modeling
analyses. For mobile sources program outreach, the  Agency  is participating in a collaborative
effort with  DOTs Federal Highway Administration (FHWA) and Federal Transit Administration
(FTA) designed to educate the public about the impacts of transportation choices on traffic
congestion, air quality, and public health. This community-based public education initiative also
includes the Centers for Disease Control (CDC).  In addition, EPA works with DOE to identify
opportunities in the Clean Cities program.  EPA also works  cooperatively with DOE to better
characterize gasoline PM emissions and characterize the contribution of gasoline vehicles and
engine emissions to ambient PM levels.

       To  reduce air toxic emissions do not inadvertently increase worker exposures, EPA is
continuing  to  work closely with the Department of Labor's Occupational Safety and Health
Administration (OSHA) to coordinate the development of EPA and OSHA standards.  EPA also
works  closely with other  health  agencies  such  as  the CDC,  the  National Institute  of
Environmental Health Sciences (NIEHS), and the National Institute for Occupational Safety and
Health on  health risk  characterization.  To assess  atmospheric deposition and characterize
ecological  effects, EPA  works with the Department of Commerce's National Oceanic and
Atmospheric Administration and the Department of the Interior's U.S. Fish and Wildlife Service.

       The Agency has worked extensively with the Department of Health and Human Services
(HHS)  on  the  National Health  and  Nutritional   Evaluation  Study to  identify mercury
accumulations in humans. EPA also has worked with DOE on the 'Fate of Mercury' study to
characterize mercury transport and traceability in Lake Superior.

       To  determine the extent to which agricultural activities contribute to air pollution, EPA
will continue  to work  closely with the USDA through the  joint USDA/EPA AAQTF.  The
AAQTF is  a workgroup set up by Congress to oversee agricultural air quality-related issues and
to develop  cost-effective ways in which the agricultural community can improve air quality.  In
addition, the AAQTF coordinates research on agricultural air  quality issues to avoid duplication
and ensure  data quality and sound interpretation of data.


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       In developing regional and international air quality programs and projects, EPA works
primarily with the Department  of State, the Agency for International Development, and the
Department of Energy as well as with regional organizations.  EPA's international air quality
management program will  complement EPA's programs on children's  health, Trade and the
Environment, and trans-boundary air pollution.  In addition, EPA will partner with  others
worldwide, including international  organizations such as  the  United  Nations  Environment
Programme,  the European Union, the OECD, the World Bank, the Asian Development Bank,
and our colleagues in Canada, Mexico, Europe, and Japan.
STATUTORY AUTHORITIES

Alternative Motor Fuels Act of 1988
Clean Air Act (42 U.S.C. 7401-7671g)
Motor Vehicle Information and Cost Savings Act
National Environmental Policy Act (NEPA)
National Highway System Designation Act
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                         Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                        Clean Air and Global Climate Change
OBJECTIVE;  Healthier Indoor Air

      By 2008,22.6 million more Americans than in 1994 will be experiencing healthier indoor
air in homes, schools, and office buildings.

                                Resource Summary
                               (Dollars in Thousands)

Healthier Indoor Air
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Buildings & Facilities
Inspector General
Total Workyears
FY2003
Actuals
$44,299.1
$32,649.2
$1,611.8
$9,415.3
$417.0
$205.8
152.0
FY2004
Pres. Bud.
$48,042.5
$37,916.4
$1,289.0
$8,150
$414.6
$272.5
149.9
FY2005
Pres. Bud.
$48,954.7
$38,695.1
$1,367.3
$8,150
$465.0
$277.3
153.2
FY 2005 Req. v.
FY 2004 Pres Bud
$912.1
$778.6
$78.3
$0
$50.4
$4.8
3.4
                                 Program Project
                               (Dollars in Thousands)

Categorical Grant: Radon
Indoor Air: Asthma Program
Indoor Ah*: Environment Tobacco Smoke
Program
Indoor Air: Radon Program
Indoor Air: Schools and Workplace
Program
Administrative Projects
TOTAL
FY2003
Actuals
$9,415.3
$9,062.6
$2,832.8
$5,843.6
$9,005.2
$8,139.6
$44,299.1
FY2004
Pres. Bud.
$8,150.0
$11,097.0
$3,617.5
$5,871.1
$11,176.2
$8,130.7
$48,042.5
FY2005
Pres. Bud.
$8,150.0
$11,197.3
$3,695.1
$6,065.6
$11,258.2
$8,588.5
$48,954.7
FY 2005 Req. v.
FY 2004 Pres Bud
$0.0
$100.3
$77.6
$194.5
$82.0
($457.7 '
lister'
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FY 2005 REQUEST

       Health effects  of indoor air pollution.   Research conducted  by the Environmental
Protection Agency (EPA) and others, beginning in the late  1970's, indicates that Americans
spend about 90 percent of their time indoors, where they are exposed to levels of pollutants that
are often higher than those outdoors.45 Indoor air pollution can pose high risks to human health,
especially to sensitive populations.  Estimates of the economic costs to the nation of poor indoor
air quality, including lost worker productivity, direct medical costs for those whose health is
adversely affected, and damage to equipment and materials, are on the order of tens of billions of
dollars per year.46 In 2000, the National Academy of Sciences (NAS) affirmed the significance
of indoor triggers of asthma and the alarming increase in asthma rates nationwide.47

       Indoor air pollutants continue to have significant impacts in our  homes, schools, and
workplaces:

"      An estimated 20  million  people in the United  States have  asthma.48  The number of
children with asthma has more than doubled  since 1980.  In 2001, an estimated  6.3 million
children had asthma, of which nearly one hi  13 are school-aged.  Each year over 14 million
school days are missed by children with asthma. There also continues to be significant racial and
ethnic disparities in asthma morbidity and mortality in the United States; African-Americans
continue to have higher rates of asthma emergency room visits, hospitalizations, and deaths than
Caucasians.49

•      In 2000, there were 214,000 hospitalizations and more than 1.8 million emergency room
visits.50 Asthma's estimated annual cost to the Nation is $14.0 billion.51

"      There is  substantial evidence that indoor  exposures to  secondhand smoke (ShS, also
known as environmental tobacco smoke or ETS)  and  indoor allergens from dust mites, pests,
molds, and pets play a significant role hi triggering  asthma episodes, and,  in some instances (ShS
and dust mites), are causally linked to the development of the disease. Indeed, estimates suggest
that approximately 80% of asthma in children (or 5  million children) is allergic asthma.52

"      As of 1998, young children were exposed to ShS in approximately 20.3 percent of U.S.
homes, increasing their risk for asthma and causing thousands of lung infections and other
45 Report to Congress on Indoor Air Quality. EPA/400/1-89-001.
46 Mendell et al, Improving the Health of Workers in Indoor Environments, Am. J. Pub. Health, 92, 1430 2002.
47 Clearing the Air: Asthma and Indoor Air Exposures. ISBN 0-309-06496-1. January 2000.
48 American Lung Association. "Trends in Asthma Morbidity and Mortality." ALA: New York, NY. March 2003.
49 Morbidity and Mortality Weekly Report, Surveillance Summaries, Surveillance for Asthma 1980-1999:  CDC. March 29,
2002; Asthma Prevalence, Health Care Use and Mortality, 2000-2001: yyww.cdc.gov.
50 Asthma Prevalence, Health Care Use and Mortality, 2000-2001: www.cdc.gov. Accessed 12/01/03
51 National Heart, Lung, and Blood Institute, (NHLBI) Chartbook, 2002: www.nhlbi.nih.eov/resources/docs/02 chtbkpdf.
52 Institute of Medicine, National Academy of Sciences. U.S. Committee on the Assessment of Asthma and Indoor Air. Clearing
the Air: Asthma and Indoor Air Exposures. 2000. Washington. National Academy Press.

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                                                       Children 6 & Under Regularly Exposed
                                                          to Secondhand Smoke at Home
                                                                                      IB Children |
                                                           1994
                                                                          1998
                                                   Source: National Center for Health Statistics, National
diseases.53   ShS contains  more than  4,000
substances of which more than 40 are known
as  carcinogens  under the  EPA Carcinogen
Assessment Guidelines.54

"      In  1999,  indoor  air   quality  was
reported to be unsatisfactory in  about one hi
five schools hi the U.S., while ventilation was
reported as unsatisfactory  in about one-quarter
of public schools. This translates to over 11
million  students attending  public  schools
reporting unsatisfactory indoor air quality and
about  14  million students  attending public
schools reporting unsatisfactory ventilation.55

•      Radon is the second leading cause of
lung cancer and is estimated to be responsible
for an estimated 21,000 deaths per year.56  In 1992, EPA estimated that nearly one out of every
15 homes had radon concentrations above the EPA recommended action level.57

•      Molds have  the potential to cause health problems.  Molds produce allergens, irritants,
and in some  cases, potentially toxic substances.  Inhaling or touching mold or mold spores may
cause  allergic  reactions  in sensitive  individuals.   Allergic responses include hay fever-type
symptoms, such as runny  nose, red eyes, and skin rash. Allergic reactions to mold are common.
They can be immediate or delayed. Molds can also cause asthma attacks in people with asthma
who are allergic to mold.  In addition,  mold exposure can irritate the eyes, skin, nose, throat, and
lungs of both mold-allergic and non-allergic people.58

       Indoor environments program strategies. EPA implements two primary strategies to
meet  its human health objective  to  improve  indoor air quality.   These strategies focus on
protecting sensitive populations, including children and the elderly, as well as the chronically ill.

       Increase Public Awareness:  EPA raises public awareness of actual and potential indoor
air risks so that individuals can take steps to reduce exposure.  Outreach activities, in the form of
educational  literature,  media campaigns,  hotlines,  and  clearinghouse  operations, provide
essential information about indoor air health risks  not only to the public, but to the professional
and research communities as well.  Underpinning EPA's outreach effort is a strong commitment
to environmental justice, community-based risk reduction, and customer service.
53 Results of a national telephone survey entitled "Radon Risk Communication and Results Study," commissioned by EPA in
1994. EPA expects updated results in 2004.
54 U.S. Environmental Protection Agency. Respiratory Health Effects of Passive Smoking. 1993.  Available at
http://www.epa.gov/iaq/pubs/etsfs.html  Accessed 12/22/03.
55 Condition of America's Public School Facilities:  1999, National Center for Education Statistics, Office of Educational
Research and Improvement, U.S. Department of Education, NCES2000-032, June 2000.
56 U.S. Environmental Protection Agency. EPA Assessment of Risks from Radon in Homes. June 2003.
57 National Residential Radon Survey, 1992.
58 Institute of Medicine, National Academy of Sciences (U.S.). Committee on the Assessment of Asthma and Indoor Air.
Clearing the Air: Asthma and Indoor Air Exposures. 2000. Washington. National Academy Press.

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       Increase Partnerships:  Through partnerships with non-governmental and professional
entities, EPA disseminates multi-media materials encouraging individuals, schools, and industry
to take action to reduce health risks in  their indoor environments.  In addition, EPA uses
technology transfer to  improve the ways in which all types of buildings, including schools,
homes,  and workplaces, are designed, operated, and maintained.  To support these voluntary
approaches, EPA incorporates the most current science available as the basis for recommending
ways that people can reduce exposure to indoor contaminants.

       To reach people at the community level, EPA uses assistance agreements and cooperative
partnerships to collaborate with organizations such as the American Academy of Pediatrics, the
Asthma and Allergy Foundation of America, the National Association of Counties, the National
Education Association, the American Lung  Association, the Consumer Federation of America,
and  the National  Environmental  Health Association.   These  partnerships allow  EPA to
successfully reach and educate target audiences with messages about how to reduce public health
risks posed by indoor air contaminants. Targeted audiences include:  health care providers who
treat children with asthma, school personnel who manage the environments where children spend
many hours each day,  county and  local environmental health officials, and  disproportionately
affected and disadvantaged populations. Through this national partner network of over 100 state,
local, and nonprofit organizations and more than 1,000 local field affiliates, EPA leverages the
personnel, expertise, and credibility of these  groups to provide the tools to their target audiences,
and to the general public, to make informed  decisions about reducing health risks hi their indoor
environment.

       EPA broadens  awareness and encourages action through national organizations focused
on addressing indoor asthma triggers, as well as other indoor health risks, and partners with other
local  community-based organizations for  implementation.    These  agreements will provide
maximum flexibility for states and  communities to design programs that address critical indoor
air quality problems, including  radon, asthma, mold contamination, and secondhand smoke in
homes, child care, and school facilities, and other residential environments.

Results to be Achieved under this Objective

Indoor Air: Asthma

       Although there is no known cure for asthma at this tune, the medical community agrees,
and it is established hi national, evidence-based guidelines,59 that both pharmacologic treatment
and environmental management are needed to effectively control asthma.   However, indoor
environmental management  is often not  practiced and often not  part of the prescription for
managing  asthma.   Beginning hi  1999,  .hi accord with  the  President's Task Force  on
Environmental Health Risks and Safety Risks to Children (co-chaired by EPA and  CDC), EPA
launched a  national, multi-faceted asthma  education  and outreach program that  stresses the
importance  of incorporating environmental  management into asthma education, outreach, and
management  strategies.     The   initiative,  which  primarily   focuses   on   populations
disproportionately impacted by asthma, is  based on Asthma and the Environment: A Strategy to
Protect Children, which currently  serves  as the framework for the Department of Health and
59 NIH Publication No. 02-5075, June 2002 at http://www.nhlbi.nih.gov

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Human Services (HHS), EPA, and other Federal agencies to collaborate on asthma issues.60

       In FY 2005, the EPA will build on the success of our national, multi-faceted asthma
education and outreach program designed to improve and expand the delivery of comprehensive
asthma care programs to reach more people, more effectively.  This program reaches out to the
general public;  schools and child care communities; and the  health care  community through
partnerships with Federal agencies and non-governmental organizations committed to improving
the quality of life for children with asthma. EPA will continue to implement our asthma program
through:

       •     National public awareness  and media campaigns
       "      Community-based outreach and education, and
       •     Enhancement and application of programmatic support data

EPA expects, as a result of Agency programs, that well over three quarters of a million people
will be living in healthier residential indoor environments, in FY 2005.

       National public awareness and media campaigns:  Through public awareness and media
campaigns, EPA strives to raise the public's awareness about asthma and indoor environmental
triggers and the importance of prompt action to reduce exposure to indoor triggers as part of a
comprehensive asthma management plan. In FY 2005, EPA will  continue to expand  efforts to
reach populations disproportionately impacted by asthma.

       EPA's national public service announcement (PSA) campaign, "fish out of water,"
effectively  targets  low-income  adults and children who  are  disproportionately impacted by
asthma.  This campaign - launched hi May 2001 ~ generated more than 400,000 web visits to
the No-Attacks  website, as well as  11,000  hot-line calls during the first year of the campaign.
Additionally, a tracking study conducted after the first six months of the campaign indicated that
viewers of the PSA reported a 20% increase hi activities related to managing their asthma.61  In
September 2003 EPA released a second PSA that continues to build upon the success of the first
wave.  In FY 2004 and 2005, EPA will build on the campaign's continuing momentum to create
both targeted outreach and a third PSA directed at an urban audience with limited reading skills.
EPA plans  to accomplish this through development of a website  and educational publications
specifically designed to reach this audience.

       World Asthma Day, established hi 1999 by the Global Initiative for Asthma,  is  a joint
project of the World  Health Organization and the National Heart,  Lung, and Blood Institute at
the National Institutes of Health. For the past two years, EPA has supported efforts to generate
local events designed to raise public awareness about asthma and encourage the incorporation of
environmental management as  a component  of comprehensive  asthma  management.  For
example, hi FY 2002, EPA developed a World  Asthma Day event planning kit, which provides
ideas for planning asthma events  in schools, hospitals,  state  capitol  buildings,  or other
community settings. EPA's promotion of the new World Asthma Day Event Planning Kit in FY
2003 motivated more than 1,000 school nurses, health clinics, hospitals, local health departments
and other asthma organizations  and educators to order EPA environmental asthma educational
60 President's Task Force on Environmental Health Risks and Safety Risks to Children. January 28, 1999. Revised May 2000.
61 Ad Council summary report. Available on request from USEPA, Indoor Environments Division.
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materials to support local outreach activities during the month of May. EPA doubled its goal,
which was to raise awareness and motivate 500 individuals or organizations to sponsor asthma
education events in then- local communities. Additionally, 156 organizations listed their World
Asthma Day events on EPA's web  site so that families across the country could locate and
participate in an event in their area.  In FY 2004 and 2005, we will work with other Federal
agencies and our partnering organizations to capitalize on past efforts to raise awareness and
motivate over 1000 individuals or organizations to sponsor asthma education events in their local
communities.

       Community-based  outreach  and education:  EPA partners  with non-governmental
organizations and Federal  agencies to implement community-based  outreach  and education
activities designed for schools  and  child care communities, the public, and the health  care
community. In FY 2005, EPA will continue to work with our partnering organizations to expand
programs offered to these communities.  Additionally, EPA will develop multi-media materials
designed for people with  limited-reading skills  to support community-based outreach and
education activities.

       Schools and Child Care:  EPA is committed to supporting school and child care programs
that teach children, school officials, child care providers, and parents about asthma management,
including the control  of indoor environmental triggers.   By working with nongovernmental
organizations and established school-based and child-care asthma education programs, through
FY 2003 we have:

       ™     Held over 2,000  Open Airways for Schools education classes, educating nearly
              14,000 students with asthma (Source:  American Lung  Association cooperative
             partner status reports).
       »     Trained  more than 3,000 school  nurses—providing service  and one-on-one
             education for more than 48,000  children  with asthma (Source:  National
             Association of School Nurses cooperative partner status reports).
       "     Trained over 6,000  child-care providers nationwide.  Approximately 90% of the
             76participants implemented changes in the child-care setting to reduce exposures
             to indoor asthma triggers influencing indoor air quality for approximately 50,500
             children, of  which an  estimated 12,000 have asthma (Source:  Asthma and
             Allergy Foundation of America cooperative partner status reports).

       In FY 2005, EPA will increase the level of work accomplished in the past by continuing
to support national organizations with existing,  results-based  school  and day-care  asthma
education programs.  EPA will also continue to  coordinate internally to ensure  that asthma
management in the school and child-care setting is efficiently addressed.

       In-home asthma education; For  the past three years, EPA has sponsored community-
based, in-home  asthma environmental  education  and management interventions through a
competitive grant process.  These  grants  support existing community-based, in-home programs
to develop performance-based pilot asthma education and management programs that  educate
families about how to control indoor environmental triggers in their homes. In FY 2003 the first
two  grantees completed then- projects.   For example, the Community Asthma  Prevention
Program at the Children's Hospital of Philadelphia showed reductions hi the number of children
with emergency room visits (60%) and hospitalizations (34%) for asthma as a result of their in-

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home environmental intervention program (Source:  status report from grantee). In FY 2004,
EPA will maintain its comprehensive program by  managing existing grants,  awarding new
grants, and highlighting effective program strategies.  In FY 2005, EPA will refine strategic
directions using the information gamed from these projects and continue to maintain our
comprehensive program.  Additionally, EPA will disseminate a series of case studies to support
adoption of best practices determined to be most effective at teaching practical skills as well as
motivating behavioral change.

       In FY 2004, EPA also will support efforts to  educate parents with limited reading skills
who have children with asthma by developing outreach publications such as an asthma brochure,
a children's activity book, and videos on asthma triggers (all of which will be available in
Spanish and English).  These publications, designed to supplement existing community-based
outreach and education programs, will assist in efforts to reach audiences  disproportionately
impacted by asthma. In FY 2005, EPA  will continue outreach efforts and, where appropriate,
update publications based on feedback received from target audiences.

       Health Care Communities: Through partnerships with the medical and health insurance
communities, EPA promotes the incorporation of environmental  controls  into clinical practices
and standards of care.  We accomplish this by raising the health care community's awareness of
environmental risk factors and encouraging public and private health  insurers  to develop
comprehensive asthma management programs. For example, through FY 2003, EPA has:

       •     Trained  over  150 health care  providers in health  clinics nation-wide, reaching
             approximately 25,000 asthma patients (Source: Bureau of Primary Health Care
             semi-annual status reports).

       •     Educated 600 pediatric patients and their families  and trained 2,400 respiratory
             therapists, ultimately educating up to 15,000 asthma patients (Source:  American
             Respiratory Care Foundation annual cooperative partner status report).

       "     Trained 360 health care professionals to provide integrated environmental trigger
             control  and asthma management education to patients  (Source:  Asthma and
             Allergy Foundation of America annual cooperative partner status report).

       In FY 2004 and 2005, we will continue to leverage relationships with Federal agencies
(such as the Department of Health and  Human Services) and' key healthcare organizations to
integrate environmental  controls into  clinical practices and standards  of care  as well as
collaborate with health plans to integrate environmental management into comprehensive asthma
care management programs.

       In FY 2004, EPA also will develop materials to support outreach efforts to the health care
community.  The  "Asthma Home  Environment  Checklist," will provide the information
necessary to include (or strengthen)  an environmental assessment component of a home visit
program.  The "How to Get Started Guide," will assist health plans hi developing an in-home
visit program offered to asthma disease  management program participants.  Finally, EPA will
develop case studies highlighting successful asthma  care management programs  demonstrating
effective integration of environmental controls and distribute these to the health care community


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in an effort to replicate effective approaches. In FY 2005, EPA will update publications based
on feedback received from target audiences.

       Enhancement and Application of Programmatic Support Data: While asthma cannot be
prevented or cured and continues to be a major public health problem in the U.S., national
experts agree that it can be controlled with medical treatment and management of environmental
triggers,  which  includes indoor allergens,  secondhand  smoke, and outdoor air  pollutants.62
Recent data suggest an overall downward trend in asthma hospitalizations and asthma mortality
that may indicate early successes by asthma intervention programs since  1991. It is notable that
African-Americans,  however,  continue to have  higher  rates  of emergency  room visits,
hospitalizations, and deaths related to asthma than do Caucasians.63

       Building on the National Academy of Science's report,64 in FY 2004 and 2005, EPA will
continue to  evaluate emerging scientific evidence supporting the link between environmental
exposures and asthma.

       EPA supports several studies to advance the understanding  of the role environmental
triggers play as a component of comprehensive asthma management, as well as to quantify the
impact our program has at the national level.  For example, in FY 2003, EPA:

       •      Conducted  a nation-wide  telephone survey  to  assess  awareness and action
              regarding indoor environmental asthma triggers. In FY 2004, EPA will complete
              the analysis and communicate results from the national survey. This information
              will help inform the strategic program direction for FY 2005.
       •      Collaborated  with the University of  Michigan, School of Public Health,  to
              determine  best practices and interventions of  asthma management programs
              achieving health outcomes.  In FY 2004, EPA will produce a review based on this
              work that will provide guidance for  EPA outreach and education programs.  In
              addition, this  work will form the basis of a "real-time" repository of information
              and resources to support and enhance national asthma management programs.  In
              FY 2005, EPA and its partners will continue to evaluate emerging programs and
              update the repository.
       •      Assisted our partnering organizations to develop strong evaluation components to
              their outreach and education  programs.  In both FY 2004  and 2005, EPA will
              continue to provide support and technical assistance to track and report initiative
              results.

       Additional Asthma Programs:  EPA also will target low-income adults with asthma and
disproportionately  impacted members of the public who are more vulnerable to  poor indoor
conditions such as the elderly.  For example,  hi FY 2003,  EPA conducted a comprehensive
literature search on indoor health risks for the elderly, and convened a group of more  than 20
stakeholders to discuss indoor environment issues that impact aging populations directly. As an
outgrowth of that meeting, EPA is collaborating hi FY 2004 with organizations that advocate for
62 Institute of Medicine, National Academy of Sciences (U.S.)- Committee on the Assessment of Asthma and Indoor Air.
Clearing the Air: Asthma and Indoor Air Exposures. 2000. Washington. National Academy Press.
63 Centers for Disease Control. "Asthma Prevalence, Health Care and Use Mortality, 2000-2001". Available at
www.cdc.gov/nceh/airpollution/asthma/asthmadata.htm Accessed December 23. 2003.
64 Clearing the Air: Asthma and Indoor Air Exposures. ISBN 0-309-06496-1. January 2000.

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the protection of the elderly  to  focus  selected outreach and education efforts on  reducing
exposure to possible indoor environmental contaminants.  In FY 2005, these efforts will be
expanded as part of a cross-Agency strategy to improve the environmental health of the elderly.

       Indoor Air: Schools and Workplace Programs

       Schools:  Schools and school districts across the nation are realizing the benefits  of
improved indoor air quality after successfully implementing the indoor air quality (IAQ) Tools
for Schools (TfS) kit and Program.  In 2002,  a national survey  of school  operation and
maintenance practices of a representative sample of schools was completed.  The survey used a
comprehensive database of private and public schools and helped estimate the number of schools
adopting and implementing IAQ practices consistent with EPA's IAQ TfS guidance.  The key
finding was that 22% percent of respondents had IAQ management plans, consistent with EPA
guidelines.   EPA will continue to update its schools materials as new information  becomes
available, and as it analyzes information from schools case studies about how implementation
proceeded and what costs and benefits were realized.

       In FY 2005, EPA will continue to build on the success of its national IAQ TfS program
(www.epa.gov/iaq/schools) and  expand  implementation of this  program to more  schools.
Adoption of EPA's guidelines for proper operation and maintenance of school facilities results hi
healthier indoor environments for all students and staff, but is of particular help to children with
asthma, lessening the degree to which they are exposed to indoor asthma triggers.  By increasing
the number of schools where TfS indoor air  quality guidelines are adopted and implemented,
healthier indoor air will be provided for  over  a  million students,  staff, and  faculty.  As  the
program  grows, EPA continues to be particularly concerned about those  schools in inner city
areas that are experiencing significant facility deterioration, but have extremely limited funding
for repair or replacement. These schools represent a distinct challenge for TfS  adoption and we
continue to target this population by working collaboratively with several urban  school-based
organizations to determine appropriate strategies  to encourage adoption of indoor air quality
guidelines.

       In 2003, EPA released an additional tool in the TFS program, Design Tools for Schools
(DTfS) (www.epa.gov/iaq/schooldesign). DTfS  is  web-based guidance to assist school districts
in  integrating indoor  environmental quality and high performance goals  into  the design,
construction, and renovation of school buildings.  In FY 2005, the  program  will continue to
increase the number of existing and new schools that protect students and staff from, the health
risks posed by poor school environments. EPA will actively seek  feedback from users of the
newer  DTfS design guidance to refine the information we offer to the  target  community.  To
increase  awareness of the TfS Program and the DTfS guidance, the Agency  will continue to
partner with various non-governmental organizations to promote widespread adoption, including
sponsoring an annual schools  symposium, bringing together school officials,  nurses,  teachers,
facility managers and planners, parents, and others to discuss current issues and the  potential
negative effect poor indoor air quality can have on our children's health.

       In FY  2003, the  IAQ Tools for  Schools National Symposium attracted  well over 500
participants with attendance  growing each  year  since  its  inception hi FY  2000, indicating
growing interest on the part of schools and school districts nationwide. In 2003, the Symposium
coincided with Children's Health Month and featured nationally renowned experts speaking on

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topics of vital interest to the school community. Increasing numbers of school decision-makers
such as superintendents, school business officials, facility managers, and school board officials
attended the symposium.

       In FY 2005, EPA will continue to expand its efforts to address children's asthma health
concerns in schools by funding  implementation of comprehensive environmental and asthma
management systems that use IAQ  Tools for Schools as the framework for addressing all
potential asthma-related children's health risks in school environments. Indoor air is the primary
exposure route to asthma triggers as well as to a wide range of chemical respiratory irritants
commonly  found in and  around  schools (e.g., science labs, art supplies, cleaning agents, and
pesticides)  that may also be associated with exacerbation of asthma. In addition, exposure to
school bus diesel exhaust  is linked to asthma.65

       EPA also will expand the number of schools in which school-based asthma education
programs, such as the American  Lung Association's (ALA) "Open Airways" and the National
Association of School Nurses'  (NASN)  "Managing Asthma  Triggers:  Keeping Students
Healthy, " are offered.  We will continue to place emphasis on reaching inner city schools with
disproportionately affected populations. These programs teach students with asthma to identify
and control their exposure to asthma triggers  in their environment and help staff and teachers
understand the steps they can take to improve their school's asthma management.

       IAQ TfS  is a proven environmental  management system for schools  that stresses
teamwork,  comprehensive "whole building" strategies, and multi-media approaches, as schools
struggle  to  finance critical  education priorities while ensuring a safe and healthy learning
environment for  children, it is critical that the Federal government better integrate its existing
environmental management programs for schools.  This integration, through IAQ TfS, allows
schools to  efficiently manage their  limited resources  so they can target  the most pressing
environmental health issues, such as asthma.  EPA will continue to fund several national,
regional, or community based results-oriented programs that utilize a multi-media approach to
addressing  all potential asthma triggers, through effective and innovative integration of existing
proven programs such as  IAQ  TfS and Open  Airways for Schools  as  well  as programs
addressing other environmental triggers of asthma.

       Workplaces:   In  FY  2005,  EPA will continue to use its premiere tool, Indoor Air
Quality—Building Education and Assessment Model (I-BEAM) to aid office building owners
and managers to understand the benefits of good indoor air quality in their buildings and how to
achieve it (www.epa.go v/iaq/largebldgs/ibeam_page.htm).  This tool informs  building owners
and managers of the proactive steps to improve indoor air quality thereby improving the health
and productivity of their office workers. We will continue to expand our efforts to inform our
targeted audience through additional  partnerships.  Over 35,000 copies of guidance documents
related to building air quality, e.g., "Building Air Quality, A Guide for Building Owners and
Facility Mai agers,  1991," I-BEAM, and  "Mold Remediation in  Schools and Commercial
Buildings," are downloaded from www.epa.gov/iaq every montbu
65 Health Assessment Document for Diesel Engine Exhaust. USEPA EPA/600/8-90/057F. 01 May 2002. U.S. Environmental
Protection Agency, Office of Research and Development, National Center for Environmental Assessment, Washington, DC).

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Indoor Air: Environmental Tobacco Smoke Program
 100

  90

  80

  70

  60

  50

  40

  30

  20

  10
      Exposure to Environmental Tobacco Smoke (ETS):
    Nonsmokers* with Detectable Serum Cotinine Levels*
  Porcont wilh detectable serum cotinine      988-94 Baseline  |  || 1999-2000

         87.4
     I
88.3
                64.2
           Ages 4-17
                            Ages 18+"
1 95% confidence Interval
• Nonsmokers defined by swum cotirtne levels < 11 ng/mL. (Active smoker
"DetedaUe swum cotinine levels: > .05 ng/mL and < 10 ng/mL.
•"Age adjusted to the 2000 standard population,
                            almost always have cotinine leveb >10ng/mL. sometimes >500ng/mL)
                                                            EPA addresses secondhand smoke
                                                            (ShS) risks  as part  of its overall
                                                            program to  educate  the  public
                                                            about   indoor   air   pollution.
                                                            Although      EPA's     mission
                                                            addresses all involuntary exposure
                                                            to   ShS,   EPA   is   particularly
                                                            concerned   about  the  risks  to
                                                            millions of children  age  6 and
                                                            younger.     While   secondhand
                                                            smoke  is  a   health  risk  for
                                                            everyone  exposed,  very  young
                                                            children are especially vulnerable
                                                            because their respiratory, immune,
                                                            and  nervous   systems  are  still
developing. Children are most likely to be exposed in homes with  smokers, but may also  be
exposed in other settings, such as hi cars, day care facilities and schools, and public buildings.

       As of 1998, 20% of young children aged six and below were regularly exposed to ShS in
U.S. homes.66  EPA  estimates that exposure to  ShS  contributes  150,000  to 300,000  lower
respiratory tract infections annually in infants and children up to 18 months of age, resulting in
up to  15,000 cases requiring hospitalization.67  ShS exposure is causally  associated with  an
increased risk of acute and chronic  middle ear disease.68  Asthmatic children are especially at
risk, as ShS exposure increases the number of episodes and severity of symptoms for up to a
million asthmatic children.69  Additional findings related to the health effects of ShS suggest
links between ShS exposure and sudden infant death syndrome.70

       Smoke free  environments  are the most  effective method for reducing ShS exposure.
Healthy People 2010 (http://www.heaithvpeople.gov)  objectives address this issue and seek
optimal  protection  of nonsmokers  through policies  and  actions  that  promote  smoke-free
environments hi schools, work sites, and public places.  The two Healthy People 2010 objectives
most relevant to EPA's ShS program are: (1) Reduce the proportion of children age  6 and under
who are regularly exposed to tobacco smoke at home from 27% in 1994 to 10% hi 2010, and (2)
Reduce the proportion of nonsmokers exposed to environmental tobacco smoke from 65% of
nonsmokers aged 4  years and older (defined as having a serum cotinine level above O.lOng/mL
in 1988-94 (age adjusted to the year 2000 standard population)) to 45% by 2010.71

       Nicotine, one of more than 4,000 chemicals found in the  smoke from tobacco products
such as cigarettes,  cigars, and pipes, is metabolized  in  the body into several components.
66 National Health Interview Survey, DHHS, 1998. ETS exposure increases the risk of lower respiratory tract infections such as
bronchitis and pneumonia (Respiratory Health Effects of Passive Smoking: Lung Cancer and Other Disorders, U.S. EPA,
December 1992)
67 Respiratory Health Effects of Passive Smoking: Lung Cancer and Other Disorders, U.S. EPA, December 1992.
68 International Consultation on ETS and Child Health Report, World Health Organization, January 1999
69 Respiratory Health Effects of Passive Smoking: Lung Cancer and Other Disorders, U.S. EPA, December 1992
70 Health Effects of Exposure to Environmental Tobacco Smoke, California EPA, September 1997.
71 National Health and Nutrition Examination Survey (NHANES), NCHS, CDC.

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Cotinine, one  of the major metabolites, persists in the body and is considered a very good
biomarker of exposure. Exposure can be measured by analyzing the cotinine levels in the blood,
saliva, urine, or hah-.  While cotinine persists in the body for only a discrete amount of time and
is therefore only a good short-term indicator of  ShS exposure, EPA has begun to use cotinine
measurement as a tool to indicate short-term dose to ShS exposure from all environments (note:
cotinine cannot be isolated or differentiated between home exposure versus other exposures (e.g.,
from a daily child care provider), given currently  collected data. Based on the most current data,
cotinine levels have fallen significantly among non-smokers over the last several years.

      EPA is pursuing a multi-media effort on ShS to promote behavior change associated v, ith
children's exposure to ShS.  In April, 2003, EPA, under a cooperative agreement with a national
partner,  launched a Public  Service  Campaign entitled, "My Mom's  My Hero,"  to motivate
parents  to  make their  homes  smoke free.   It  is estimated  that this  PSA has  received
approximately $10.3  million in donated media  time and 100,000 airings  (from April 2003  -
October 2003).72  In 2004,  EPA anticipates  continued outreach  with a 30-minute educational
video which will follow a smaller, more targeted distribution method (unlike the previous mass
media distribution). The distribution is tentatively planned to be given to approximately 5,000
physicians and aired on select TV outlets. In FY 2005, there will be continued results from the
FY 2004 project as well as potential  media results  from  an independent media outreach
collaboration between the Ad Council and the American Legacy Foundation that involves no
EPA resources.

      The Agency also provides technical  support directly to state,  local government, and
public health organizations to develop and make available tools and resources that promote
behavior changes in  parents and guardians that result in smoke-free homes.  In  2003, it is
estimated that there were 400+ partner organizations in the ShS database with an additional 300+
calls for technical assistance from organizations  other than those currently listed.  In FY 2004
and FY 2005 there will be a continued effort to develop new partnerships. The Agency expects
to double the numbers of partners in FY 2004 and projects an additional increase of 50% in FY
2005.

      Additionally, EPA is focusing on expanding participation in the "Smoke Free Homes
Pledge" program, which targets  the parents of young children, advising them of the health
consequences of exposing children to secondhand smoke inside  the home. Through calendar
year 2003, approximately 12,000 Smoke-free Home Pledges were tracked through the hotline
and the web. With  the increase in partner organization activity and momentum, the Smoke-free
Homes Programs projects an additional 17,000 pledges in FY  2004 and 22,000 pledges in  FY
2005.  See http://www.epa.gov/smokefree for information on taking the "Smoke Free Home
Pledge" or to view the PSA, "My Mom's My Hero."

      In FY 2003,  the Agency,  through  a  competitive  selection process, awarded  two
Cooperative Agreements.  The first focused on changing clinical practices in pediatric offices to
heighten  parent  awareness  and promote smoke-free  homes,  and the other  concentrated on
disparities and reducing risk among at-risk populations.  Through FY 2004 and FY 2005, EPA
will continue to provide competitive funding to  organizations that provide real-life results and
inform the Agency  about approaches that achieve results.
72 Consumer Federation of America Foundation. Independent Tracking 2003.
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       EPA is also working closely with CDC on developing the U.S. position on ShS for the
Framework Convention on Tobacco Control (FCTC).  The FCTC is an international treaty to
address all aspects of tobacco control, including health, trade, advertising, and taxation.  The
World Health Organization recently  adopted a final draft of the treaty and the  Interagency
Working Group has recommended that the White House sign the treaty.

Indoor Air: Radon Program/ Categorical Grant: Radon
        Radon is Estimated to Cause Thousands of
            Cancer Deaths Annually in the U.S.
       25,000-,

       20,000
       15,000-

       10,000-1
        5,000

            0
             Radon Dnjnk FaMs in Fires Drownings
                  Drivingthe Home
               (Source: National Academy of Sciences
                 1998 Radon data and 2001 National
                   Safety Council reports.)
                                                           Radon,  a  naturally  occurring
                                                    radioactive gas, is the second  leading
                                                    cause  of lung  cancer in  the  United
                                                    States.  It is estimated to cause about
                                                    21,000 lung cancer deaths each year.73
                                                    Radon enters  the  indoor air primarily
                                                    from   soil  under  homes  and  other
                                                    buildings.   Found all over  the  U.S.,
                                                    radon comes from the radioactive decay
                                                    of   uranium   in   soil,    rock,   and
                                                    groundwater. It emits ionizing radiation
                                                    during its radioactive  decay to several
                                                    radioactive  isotopes  known  as radon
                                                    decay  products.   Radon  is  a known
human lung carcinogen and is the largest source of radiation exposure and risk to the general
public.  Most inhaled radon is rapidly exhaled, but the inhaled decay products readily deposit in
the lungs, where they irradiate sensitive cells in the airways increasing the risk of lung cancer.
Radon typically moves up through the ground to the air above and into the home through cracks
and other holes in the foundation.

       In 1988 Congress passed the Indoor Radon Abatement Act of 198874 directing the EPA to
work toward a long term national goal:  "The air within buildings in the United States should be
as free of radon as the ambient air outside of buildings."  EPA's indoor radon program promotes
voluntary public actions to reduce the risks  from indoor radon.  EPA and the  U.S. Surgeon
General recommend that people do a simple home test and if levels above EPA's guidelines are
confirmed, reduce those levels by a home mitigation using straight-forward techniques. It is also
recommended that new homes be built radon-resistant using techniques  described in national
building codes.75 Since the mid-1980s, there has been significant progress in reducing the risk
from exposure to radon.  This progress is the result of continued efforts between EPA, citizens,
non-profit organizations, state and local governments, the business community, and other Federal
agencies working together.  Through the State Indoor  Radon  Grant Program, EPA provides
assistance through categorical grants to the states to develop, implement, and enhance programs
to assess and mitigate radon risks.
 ' EPA Assessment of Risks from Radon in Homes. U.S. EPA. 2003. EPA 402-R-03-003.
 1CFR. Title 15-Commerce and Trade, Chapter 53-Toxics Substance Control, Subchapter III - Indoor Radon Abatement
 ' National Fire Protection Association 5000, International Residential Code 2003

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       In June 2003, EPA updated its risk assessment for radon. The results show that EPA had
underestimated the risk from radon.76 Given the revised estimates of increased risk, in FY 2004
and FY 2005, EPA will continue to promote public action to test homes for indoor radon, reduce
elevated levels,  and build new homes in high radon areas with radon-resistant features while
highlighting  the risk information.   This will continue to be accomplished through national
outreach  and  education campaigns  in  collaboration with the  states, private  non-profit
organizations, Tribes, and other Federal agencies such as the U.S. Department of Agriculture
Cooperative Research, Extension, and Education Service.

       Through FY  2003,  EPA conservatively estimates  that 690,000 homes  have been
mitigated based on existing consumer surveys conducted before  1996 and radon mitigation fan
sales provided by the three major U.S. radon vent fan manufacturers after 1996.  In the last year
for which data were available (2002), approximately 70,000 homes were mitigated.

       Based on an annual  survey  of builder home building practices done by the National
Association of Home Builders Research Center, the number of homes built radon resistant from
1990-2001 is estimated to be 1,015,000 with 610,000 of those homes being located in high radon
potential areas (Zone 1).  Approximately 560 lives are saved annually from radon mitigation and
radon-resistant new construction performed to date.77
FY 2005 CHANGE FROM FY 2004

EPM

•      (+3.0 FTE):  This increase shows a redirection of workyears from within Goal 1 to
expand our outreach efforts on innovative ways to reduce health risks from asthma and indoor
air.  With more resources in implementation we will be able to increase our outreach efforts to
inform and educate the public about the effects of poor  indoor air quality and  indoor  air
pollutants and steps they can take to improve the indoor air quality in their schools, residences
and workplaces.

•      There are additional increases for payroll, cost of living, and enrichment for new and
existing FTE.


ANNUAL PERFORMANCE GOALS AND MEASURES

Healthier Residential Indoor Air

In 2005     843,300 additional people will be living in homes with healthier indoor air.

In 2004     834,400 additional people will be living in healthier residential indoor environments.

In 2003     End-of-year FY 2003 data will be available in late 2004 to verify that 834,400 additional people were
           living in healthier residential indoor environments.
76 U.S. Environmental Protection Agency. EPA Assessment of Risks from Radon in Homes. June 2003. Available at
http://www.epa.gov/radiation/docs/assessment/radon_in_homes.pdf
77 Based on U.S. EPA's updated risk assessment for radon, EPA Assessment of Risks from Radon in Homes (June 2003), and the
methodology outlined in EPA's Technical Support Document for the 1992 Citizen's Guide to Radon.

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Performance Measures:                     FY2003        FY2004        FY2005
                                            Actuals       Pres. Bud.      Pres. Bud.
People Living in Healthier Indoor Air          _               „_, „„„        „...,„„„
   r       &                               Data Lag        834,400        843300           People

Baseline:    1.  By 2005, increase the number of people living in homes built with radon reducing features to
            4,539,000  from 1,862,280 in 1994 (cumulative) .* 2.  By 2005,  decrease the number of children
            exposed to ETS from 27,502,000 in 1994 to 24,119,404 (cumulative)  .** 3. By 2005, increase by
            500,000 the number of people with asthma and their caregivers who are educated about indoor air
            asthma triggers. *  The 1994 baseline for the number of new homes built with radon-resistant design
            features has changed from 684,000 tO 384,000.  This is due to a recent review of historical NAHB
            Research Center reports wehich determined that a significant number of "rough-in" installations were
            reported as radon-resistant  new construction.  "Rough-in"  installations are not complete radon-
            reduction systems  and do not provide any risk reduction, and they should not be considered when
            estimating the number of homes built with radon-resistant new construction. In order to improve the
            integrity of the results that are being reported, EPA is dropping homes with rough-in installations when
            estimating the amount of homes built  with radon-resistant construction.   The baseline of existing
            homes mitigated remains the same at 300,000 in 1994.

            ** The 1995 Census Report  that EPA was using for a baseline population (19,500,000) for children 0
            to 6 years  of age represented only childeren 0 to 4 years of age.  This recently came to our attention
            after an internal review of the baselines. The actual baseline population of children from the ages of 0
            to 6 should be 27,502,168. In order to improve the integrity  of the results that are being reported, EPA
            is correcting the baseline population to the comprehensive number which includes the ages 0 to 6 years
            old. Our 2005 goal of decreasing the percentage of childern exposed, remains at 15% and the starting
            point remains at 27.3%.

Healthier Indoor Air in Schools

In 2005     1 ,3 12,500 students, faculty and staff will experience improved indoor air quality in their schools.

In 2004     1,575,000 students, faculty and staff will experience improved indoor air quality in their schools.

In 2003     End-of-year FY 2003 data will be available in late 2004 to verify that 1,050,000 students, faculty and
            staff experienced improved indoor air quality in then' schools.

 Performance Measures:                    FY2003        FY2004        FY2005
                                            Actuals       Pres. Bud.      Pres. Bud.
 Students/Staff  Experiencing   Improved
                                           DataLag        lfajm        ,312500

Baseline:    The nation has approximately 117,000* schools with an average of 525 students, faculty and staff
            occupying them for a total baseline population of 61,425,000. The IAQ "Tools for Schools" Guidance
            implementation began in 1997. For FY 2004, the program projects an additional 3,000 schools will
            implement the guidance and seeks to obtain implementation commitments from 15 of the  100 largest
            school districts in the U.S. with an average of 140,000 per district. (Additional, not cumulative since
            there is not an established baseline for good IAQ practices in schools.)

            * According to the U.S. Department of Education National Center for Education Statistics, between
            1994 and 2002, 7,000 new schools were built. For the revised strategic plan we increased our baseline
            to incorporate the increase.  Our FY 2008 strategic goal incorporates the additional school.
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Healthier Indoor Air in Workplaces

In 2005    150,000 additional office workers will experience improved air quality in their workplaces.

 Performance Measures:                 FY 2003       FY 2004      FY 2005
                                     Actuals      Pres. Bud.     Pres. Bud.
 150,000 additional office  workers will
 experience improved air quality in their
 workplaces.                                                       , „ . _n         „   ,
     *                                                           150,000         People


Baseline:   There are approximately 750,000 office buildings with 12  billion square feet.  The mean worker
          density is 1 office worker per 500 square feet. Therefore, a total of 24 million office workers work in
          office buildings. Our 2005 goal is to get 5% of all office buildings to adopt good IAQ measures
          which translates into 1.2 million office workers (cumulative  from 1994). Our 2008 goal is to get an
          additional 3% of all office buildings to adopt good IAQ measures which translates to 720,000 office
          workers (cumulative at 240,000 per year).

VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Overarching Performance Measure: People Living in Healthier Indoor Air

FY 2005 Performance Measure; People Living in Radon Resistant Homes

Performance Database: Survey

Data Source:  The survey is an annual sample of home builders in the United States most of
whom are members of the National Association of Home Builders (NAHB). NAHB members
construct 80% of the homes built in the United States each year.  Using a survey methodology
reviewed by EPA, NAHB Research Center estimates the percentage of these homes that are built
radon resistant.  The percentage built radon resistant from the sample is then used to estimate
what percent of all homes built nationwide are radon resistant.  To calculate the number of
people living in radon resistant homes, EPA assumes an average of 2.67 people per household.
NAHB Research Center has been conducting this annual builder practices survey for over a
decade, and has developed substantial expertise in the survey's  design, implementation, and
analysis. The statistical estimates are typically reported with a 95 percent confidence interval.

Methods, Assumptions, and Suitability:  NAHB Research Center conducts an annual survey of
home builders in the United States to assess a wide range of builder practices. NAHB Research
Center voluntarily conducts this survey to maintain an awareness of industry trends in order to
improve American housing and to be responsive to the needs of the home building industry. The
annual survey gathers information such as types of houses built, lot sizes, foundation designs,
types of lumber used, types of doors and  windows  used, etc. The NAHB Research Center
Builder Survey also gathers information on the use of radon-resistant design features hi new
houses, and these questions comprise about two percent of the survey questionnaire.

In January of each year, the  survey of building practices for the preceding calendar year is
typically mailed out to home  builders.  For the most-recently completed survey,  for building
practices during calendar year 2001, NAHB Research  Center reported mailing the survey to
about 44,000 active United States home building companies, and received about 2,800 responses

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which translates to a response rate of about 6.4 percent.  This is the response rate for the entire
survey.   The survey responses are analyzed with respect to State market areas and Census
Divisions in the United States, and are analyzed to assess the percentage and number of homes
built each year that incorporate radon-reducing features.  The data are  also used to assess the
percentage and number of homes built with radon-reducing features in high radon potential areas
hi the United States (high risk areas).  Other  analyses include  radon-reducing features  as a
function of housing type, foundation type, and different techniques for radon-resistant new home
construction. The data are suitable for year-to-year comparisons.

QA/QC Procedures:   Because  data  are  obtained  from an  external organization, QA/QC
procedures are not entirely known. According to NAHB Research Center, QA/QC procedures
have been established, which includes QA/QC by the vendor that is utilized for key entry of data.

Data Quality Review:  Because data are obtained from an external organization, Data Quality
Review procedures are not entirely known.  NAHB Research Center indicates that each survey is
manually reviewed, a process that requires several months to complete.  The review includes
data quality checks to ensure that the respondents understood the survey questions and answered
the questions appropriately.   NAHB  Research Center also applies checks  for  open-ended
questions to  verify the  appropriateness of the answers.  In some cases, where  open-ended
questions request numerical information, the data are capped between the upper and lower three
percent  of the values provided in the survey responses.  Also,  a  quality review of each year's
draft report from NAHB Research Center is conducted by the EPA project officer.

Data Limitations:  The majority of home builders surveyed are NAHB members.  The NAHB
Research Center survey also attempts to capture the activities of builders that are not members of
NAHB.  Home builders  that are not members of NAHB are typically smaller, sporadic builders
that hi  some cases build  homes as a  secondary  profession.  To augment  the list of NAHB
members in the survey sample, NAHB Research Center sends  the survey to home builders
identified from mailing lists of builder trade publications, such as Professional Builder magazine.
There is some  uncertainty as to whether the survey adequately  characterizes the practices of
builders who are not members of NAHB. The effects on the findings are not known.

Although an overall response rate of 6.4 percent could be considered low, it is the response rate
for the  entire survey, of which the radon-resistant new construction questions are only a very
small portion. Builders responding to the survey would not be doing so  principally due to their
radon activities. Thus, a low response rate does not necessarily indicate a strong potential  for a
positive bias under the  speculation that builders  using  radon-resistant  construction  would be
more likely to respond to the survey. NAHB Research Center also makes efforts to reduce the
potential for positive bias in the way the radon-related survey questions are presented.

Error Estimate:  See Data Limitations

New/Improved Data or Systems: None

References:  The results are published by the NAHB Research Center in annual reports of
radon-resistant home building practices; see http://www.nahbrc.org/. The most recent report,
"Builder Practices Report: Radon Reducing Features in New Construction 2001," Annual


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Builder and Consumer Practices Surveys by the NAHB Research Center, Inc., January 2,2003.
Similar report titles exist for prior years.
FY 2005 Performance Measure: People Living in Radon Mitigated Homes

Performance Database: External

Data Source: Radon fan manufacturers report fan sales to the Agency. EPA assumes one fan per
radon mitigated home and then multiplies it  by the assumed average  of 2.67 people per
household.

Methods, Assumptions and Suitability: N/A.

QA/QC Procedures:  Because data are obtained from fan manufacturers, EPA relies on the
business practices for reporting data.

Data Quality Review:  Data are obtained from fan manufacturers.  EPA reviews the data to
ascertain their reliability and discusses any irregularities with the relevant manufacturer.

Data Limitations:  Reporting by radon fan manufacturers is voluntary and may underestimate
the number of radon fans sold. Nevertheless, these are the best available data to determine the
number of homes mitigated.   There  are other methods to mitigate radon including: passive
mitigation techniques of sealing holes and cracks in floors and foundation walls, installing sealed
covers over sump pits, installing one-way drain valves in untrapped drams, and installing static
venting and ground covers in areas  like  crawl spaces.   Because there are no data on the
occurrence  of these  methods, there is again the possibility that the number of radon mitigated
homes has been underestimated.
No radon vent  fan manufacturer, vent fan motor maker or distributor is required to report to
EPA; they provide data/information voluntarily to EPA. There are only four (4) radon vent fan
manufacturers of any significance; one of these accounts for an estimated 70% of the market.

Error Estimate: N/A.

New/Improved Data or Systems:  None

References:     See     http://www.epa.gov/iaq/radon/pubs/rndex.html      for     National
performance/progress  reporting (National Radon Results: 1985-1999) on radon, measurement,
mitigation and radon-resistant new construction.
FY 2005 Performance Measure: Number of people with asthma who have taken steps to
reduce their exposure to indoor environmental asthma triggers.

Performance Database:  The performance database consists of quarterly Partner status reports
used to document the outcomes of individual projects; a media tracking  study used to assess
behavior change within that sector of the public viewing the public service announcements; and a
national telephone survey (National Survey on Environmental Management of Asthma) which

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seeks information about the steps taken by people with asthma, and parents of children with
asthma, to minimize exposure to indoor environmental asthma triggers.  Additional information
about asthma morbidity and mortality in the US is obtained from the Centers for Disease Control
and Prevention (CDC). Annual expenditures for health and lost productivity due to asthma are
obtained from the National Heart Lung and Blood Institute (NHLBI) Chartbook.

Data Source:  Each component of the database has a unique source.  Partner status reports are
generated by those organizations receiving funding from EPA and are maintained by individual
EPA  Project Officers.  An independent initiative  of the Advertising Council provides media
tracking of outcomes of all of their public  service  campaigns and this  is publicly available
information.  The National Survey on  Environmental Management of Asthma (OMB control
number 2060-0490) source is EPA.  Data on asthma morbidity and mortality is available from
the National Center  for Health Statistics at the CDC (www.cdc.gov/nchs).  Data on annual
expenditures for health and lost productivity due to asthma  are obtained from  the  NHLBI
Chartbook (www.nhlbi.nih.gov/resources/docs/02_chtbk.pdf).

Methods, Assumptions and Suitability:
Partner status reports:  EPA requires all funded organizations  to provide quarterly reports
identifying the numbers of children, adults, and health care professionals educated about indoor
asthma triggers, the numbers of homes, schools, and child care centers in which triggers have
been  identified, and the type of mitigation actions taken in these environments.  In addition,
decreases in the number of emergency room visits, hospitalizations, and other markers of asthma
morbidity are requested from those partner organizations with access to such data. EPA believes
that the information reflects progress made at achieving performance measures.

National Survey on Environmental Management of Asthma: (OMB control number  2060-0490):
This survey  is the most robust data set for this performance measure, but  it is not administered
annually.  EPA has designed a survey instrument (telephonic survey) in consultation with staff
from EPA and the CDC National Center for Health Statistics (NCHS) to ensure that respondents
will understand the questions asked and will provide the type of data necessary to measure the
Agency's objectives. In addition, care has been taken to ensure that the survey questions target
the population with asthma by using the same qualifier question that appears on other  national
surveys on asthma collected by the CDC.

EPA estimates that of the 26,600 households  which make up the sampling frame, 60 percent, or
approximately 16,000, will be contacted successfully  and will agree  to participate in the
screening survey. Of these approximately 16,000  individuals,  EPA expects that 15 percent, or
approximately 2,400 individuals, will either have asthma or live with someone who does.  Only
those individuals who have asthma or live with someone who does are considered to be eligible
respondents.

Respondents are asked to provide primarily yes/no responses.  In some cases, respondents are
given a range of responses in the form of multiple choice questions and are asked to indicate the
one which best defines their response.  The survey seeks information on those environmental
management measures that the Agency considers important in reducing an  individual's exposure
to known indoor environmental asthma triggers.  By using yes/no and multiple choice questions,
the Agency has substantially reduced the amount  of time necessary for the respondent to
complete the survey and has ensured consistency in data response and interpretation.

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The  information  collected may  be used  to  establish a baseline to accurately reflect the
characteristics of our nation's asthma population and by which to evaluate progress made at
achieving performance measures.

QA/QC Procedures:  It is assumed that partner organizations  report data as accurately and
completely as possible; site-visits are conducted by EPA project officers as warranted.  The
National Survey  is  designed in  accordance with  approved Agency procedures. Additional
information is available on the Internet: http://www.epa.gov/icr/plavers.html.

Data Quality Review:  EPA reviews the data from all sources in the performance database to
ascertain reliability and resolves any discrepancies.

Data Limitations:  The primary limitation associated with Partner organization status reporting
is  that limitation inherent  to self-reporting.  For the  National  Survey, random  digit  dialing
methodology is used to ensure that  a representative sample of households has been contacted;
however,  the survey is subject  to inherent  limitations  of voluntary telephone surveys  of
representative samples.  Limitations of phone surveys include:  1) inconsistency of interviewers
following survey  directions  (i.e.,  an  interviewer  might: ask  the  questions  incorrectly  or
inadvertently lead the interviewee  to a response);  or 2) call at an inconvenient time.  For
example, the respondent might not want to be interrupted at the time of the call and may resent
the intrusion of the phone call. The answers will reflect this attitude. In addition, a telephone
survey is limited to those households with a telephone.

Error Estimate:  The Agency expects to achieve results within the following percentage points
of the true value at the 90 percent confidence level (survey instrument):

       Adult Asthmatics              plus or minus 3.0%
       Child Asthmatics              plus or minus 4.0%
       Low Income Adult Asthmatics   plus or minus 6.5%

These precision rates are sufficient to characterize the extent to which the results  measured by
the survey accurately reflect the characteristics of our nation's asthmatic population.

New/Improved  Data  or Systems:  Data from  the National  Survey  on Environmental
Management of Asthma (OMB  control  number 2060-0490) was collected from August 4-
September 17, 2003 and represents the first data collection with this instrument.

References:  National Center for Health Statistics, Centers for Disease Control and Prevention
(www.cdc.gov/nchs)

NHLBI Chartbook (www.nhlbi.nih.gov/resources/docs/02mchtbk.pdf).

EPA Indoor Environments Division (www.epa.gov/iaq/).

Survey results will be available in early March 2004.  Questions may be directed to the Indoor
Environment Division.
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FY 2005 Performance Measure; Number of Children under 6 not Exposed to Secondhand
Smoke (ShS) in the Home.

Performance Databases: The performance database consists of Smoke-free Home Pledges that
are tracked through a hotline and website and that are documented hi a monthly pledge report
generated by EPA staff; Cooperative Agreement Partner status reports used to document the
outcomes of individual projects; a media tracking study used to assess behavior change within
that sector of the public viewing ShS public  service announcements; and a national telephone
survey (National Survey on Environmental Management of Asthma) which includes a series of
questions about whether respondents allow smoking in their home, and if so, whether young
children are in the household.  Expenditures for medical costs of childhood illness attributable to
ShS were taken from an analysis of previous studies and reports on medical costs. Information
about ShS  in the US is  obtained periodically from the Centers for  Disease  Control and
Prevention (CDC) including the National Health Interview Survey (for use hi benchmarking and
national tobacco/ShS exposure data), the National Health and Nutrition Examination Survey (for
use of cotinine data),  and the Behavioral Risk Factor Surveillance Survey  (for use of state
tobacco/ShS exposure data).

Data Sources:  Each component of the database has a  unique source.  Partner status reports are
generated by those organizations receiving funding from EPA and are maintained by individual
EPA Project Officers.  As  part of their Cooperative Agreement, Consumer Federation  of
America Foundation provides  media tracking  of outcomes  of  all  of their  public  service
campaigns and this is  publicly available information.  The National Survey on Environmental
Management of Asthma (OMB control number 2060-0490) source is EPA.  The medical  costs
associated with  SHS  were from 2002 Medical Costs  of Childhood Illness Attributable to
Environmental Tobacco Smoke: Total National Costs and Cost to Managed Care Organizations,
a report prepared by Abt Associates Inc., an EPA funded contractor. Additional references are
the US  Surgeon General's report on tobacco (which includes  the 1986  seminal document on
involuntary smoking and demographic profiles of smoking/ShS exposure hi US), the National
Cancer Institute's (NCI) Tobacco Monograph Series (the sum of current knowledge of clinical
trials, clinical guidelines and the validation of EPA and California EPA risk  assessments), the
NCI funded Tobacco Use Supplement portion of the US Census Bureau's Current Population
Survey (contains fundamental policy questions regarding tobacco/ShS including smoking hi the
home ), and Healthy People 2010 (which includes information on cotinine, ShS exposure and
children).

Other related sources:  National Health Interview Survey and National Health and Nutrition
Examination Survey are part of the National Center for Health Statistics, Centers for Disease
Control and Prevention (http://www.cdc.gov/nchs); Behavioral Risk Factor Surveillance Survey,
Centers for Disease Control and Prevention (http://www.cdc.gov/brfss/hidex.htm).

This information contributes to the knowledge set that helps us to calculate end of year results.

Methods, Assumptions and Suitability:  Partner status reports:  EPA requires all funded
organizations to provide status reports on their activities identifying, for example, number of
presentations given, pledges signed,  number of people trained (i.e.  health officials, daycare
providers), number of parents reached, and projected number of children no longer exposed as a


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result of their activities. EPA believes that the information reflects progress made at achieving
performance objectives.

National Survey on Environmental Management of Asthma (OMB control number 2060-0490):
This survey is the most robust data set for the FY 2005 performance measure, however it is not
administered  annually.   EPA  has  designed  a  survey  instrument (telephonic  survey)  in
consultation with  staff from EPA's  Indoor Environments  Division (IED), EPA's  Regional
offices, and the  CDC National Center for Health Statistics (NCHS) to ensure that respondents
will understand the questions asked and will provide the type of data necessary to measure the
Agency's objectives.

EPA estimates that of the 26,600 households, which make up the sampling frame, 60 percent, or
approximately  16,000, will be  contacted  successfully and  will agree to participate in the
screening survey.  SHS information will be obtained from these individuals. The sample will be
large  enough to yield the number of responses necessary  to achieve an estimated two percent
precision rate at a 95 percent confidence level.

Respondents are asked to provide primarily yes/no responses. In some cases,  respondents are
given a range of responses in the form of multiple choice questions and are asked to indicate the
one which best defines their response.  By using yes/no and multiple-choice questions, the
Agency has substantially reduced the  amount of time necessary for the respondent to complete
the survey and has ensured consistency hi data response and interpretation.
EPA  believes that the information collected may be useful in establishing a benchmark, in
addition to the 1994 and 1998 National Health Interview Survey, for the number of children, ages
6 and under, who are exposed to ShS in the home.

QA/QC Procedures:  It  is assumed that partner  organizations report data  as accurately and
completely as possible; site-visits  are conducted by EPA project officers as warranted.  The
National Survey was designed in  accordance with approved Agency procedures.  Additional
information is available on the Internet: http://www.epa.gov/icr/plavers.html.

Data Quality Review: EPA reviews  the data from all sources in the performance database to
ascertain reliability and resolves any discrepancies.

Data Limitations: The primary limitation associated with Cooperative Agreement Partner status
reporting is that self-reporting has an inherent limitation. For the National Survey, random digit
dialing methodology  is used to ensure that  a representative sample of households  has been
contacted; however, the survey is subject to Inherent limitations hi voluntary telephone surveys
of representative samples.  Limitations of phone surveys include:   1) possible inconsistency of
interviewers following survey directions. For example, an interviewer might; ask the questions
incorrectly or inadvertently lead the interviewee to a response; or 2) call at an inconvenient time.
For example, the respondent might not want to be interrupted at the time of the call and may
resent the  intrusion of the phone call.  The answers will reflect this attitude. In addition, a
telephone survey  is limited to those households  with a  telephone  or.households that speak
English.  Currently available cotinine survey data does not address  50% of the age specific
portion of EPA's target population.  It does not include birth to three years old, the portion of
children most susceptible to the effects of ShS.


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Error Estimate:  EPA's survey has been designed to ensure that, at the 95 percent confidence
level, its estimate of the number of children fewer than 6 not exposed to  ShS hi the house is
within approximately two percentage points of the  true value.   EPA is confident that these
precision rates are more than adequate.

New/Improved  Data or  Systems:  Data  from  the  National  Survey  on Environmental
Management of Asthma  (OMB  control number 2060-0490)  was collected  from August  4-
September 17, 2003  and represents the first data collection with this instrument.  This survey
utilized the exact questions on SHS from the 1994 and 1998 National Health Interview Survey
and will continue to assist hi evaluating progress made at achieving our goal.  In the future,
medical cost data could be collected from a possible expansion of CDC's Smoking Attributable
Morbidity and Mortality Economic Costs (SAMMEC) software.

References:  EPA Indoor Environments Division (www.epa.gov/iaq/)   Survey results will  be
available in early March 2004.  Questions may be directed to the Indoor Environments Division.

National Health  Interview Survey and National Health and Nutrition Examination Survey are
part  of the National Center for Health Statistics, Centers for  Disease Control and Prevention
(http://www.cdc.gov/nchs)

Behavioral  Risk Factor  Surveillance  Survey, Centers for Disease Control and Prevention
(http://www.cdc.gov/brfss/index.htm),

US Surgeon General's report on tobacco (http://www.cdc.gov/tobacco/sgr/nidex.htm),
National     Cancer      Institute's      (NCI)     Tobacco      Monograph      Series
(http://cancercontrol.cancer.gov/tcrb/monographs/),

NCI funded Tobacco Use Supplement portion of the US Census Bureau's Current Population
Survey (http://riskfactor.cancer.gov/studies/tus-cps/).

Healthy People 2010 (http://www.healthvpeople.gov/).
FY 2005 Performance Measure: Students, faculty and staff experiencing improved indoor
air quality in their schools

Performance Database:   The performance database  consists  of cooperative partner  status
reports, annual results reports from the regions, and tracking numbers of disseminated kits.  A
survey of a representative sample of schools was completed during 2002. The survey serves to
verify the number of schools using indoor air quality management plans consistent with EPA's
guidance.

Data Source:   The  sources  for  the database include cooperative partners,  regional  data,
information from EPA's National Clearinghouse on numbers of kits  disseminated, and the
statistical sample of all public and private schools in the nation during the 1999 - 2000 school
year. (United States Department of Education National Center for Education Statistics).
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Methods, Assumptions and Suitability:  Calculations for the number of people experiencing
improved IAQ are based upon an estimated average of 525 students, staff and faculty per school
(data  are from the United States Department of Education National  Center for Education
Statistics). Estimates of the number of schools implementing IAQ management plans, consistent
with EPA's guidance, are conservative, and based upon a small percentage of the number of kits
distributed, and  the  number  of schools  implementing IAQ management  plans  reported by
cooperative partners and regions.  A total of 809 completed questionnaires were returned for a
survey response  rate of 40%.  There was no evidence  of systematic error or selection bias
associated with the response rate.  The survey helped determine the number of schools adopting
and implementing good indoor air quality (IAQ) practices consistent with EPA's IAQ Tools for
Schools (TfS) guidance.

The  distribution of  returned and targeted questionnaires was  similar with  respect  to  the
stratification criteria  of geographic region and public/private  schools.  Academic resource,
demographic,  and socioeconomic characteristics of schools that  returned the survey were
approximately equal to those of schools that did not return the questionnaire. IAQ management
practices were independent of the amount of follow-up  effort required to elicit  return of a
questionnaire.  These findings indicate that the EPA can use the survey results  to make national
projections regarding IAQ practices in schools.

Survey results were evaluated against the IAQ Practice Index, a scoring system developed by
weighting possible responses to questions regarding Integrated Pest Management (IPM) practices
and ventilation rates. An IAQ Practice Index score of >70 was considered indicative of an
adequate IAQ management plan.

QA/QC Procedures:  A small sample of returned questionnaires was selected at random and the
manual data transcription from the original paper copy to the electronic database was reviewed
for completeness and accuracy.  A total  of 3,670 entries were  cross-referenced between the
database and the paper copy of the survey.  A few minor typographical errors in results from the
first page of the questionnaire were identified (e.g., a period missing in P.O. Box or letters
inverted  in a name). Otherwise, all responses to the actual survey questions were accurately
entered into the database.

As a quality control procedure, a random sample of surveys was scored manually and the IAQ
Management Practice Index was computed by hand.  The scores and indices were compared to
the corresponding values generated by the computerized scoring program.  In total,  140 data
points were  checked.  The results of all the surveys that  were hand-scored matched the values
from  the computerized scoring. In addition, the IAQ Practices in Schools  Survey Analysis
procedures and report underwent technical review by a qualified party at Environmental Health
and Engineering, Inc. (EH&E), EPA's contractor, not involved in the original analysis. Survey is
designed in accordance with approved Agency procedures. Additional information is available
on the Internet: http://www.epa.gov/icr/players.html

Data  Quality Review: Entries were cross-referenced between the database -and the paper copy
of the survey to ensure completeness and quality of responses. See QA/QC procedures, above.

Data Limitations: The primary limitation associated with Cooperative Agreement Partner status
reporting is that self-reporting has an inherent limitation.  For the National Survey, random digit

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dialing methodology is used to ensure that  a representative sample of households has been
contacted; however, the survey is subject to inherent limitations in voluntary telephone surveys
of representative samples.  Limitations of phone surveys include:  1) possible inconsistency of
interviewers following survey directions. For example, an interviewer might; ask the questions
incorrectly or inadvertently lead the interviewee to a response; or 2) call at an inconvenient time.
For example, the respondent might not want to be interrupted at the tune  of the call and may
resent the intrusion of the phone call.  The answers will reflect this  attitude. In addition, a
telephone survey  is limited  to those households with  a telephone or households that speak
English.

Error Estimate:   The sample size was selected to ensure that the survey response yields a
statistically valid result with a +/- three percent margin of error at the 95th percent confidence
level.

New/Improved Data or Systems: Prior to  the survey, EPA tracked the  number of schools
receiving the Tools for Schools (TfS) guidance and estimated the population of the school to
determine the number of students/staff experiencing unproved indoor air  quality.  With this
survey, EPA queried a statistically representative sample of schools, to estimate the number of
schools that have actually adopted and implemented good IAQ management practices consistent
with the TfS guidance.

References:  See the United States Department  of Education National Center for Education
Statistics,http://nces.ed.gov/.  See also Indoor Air Quality Tools for Schools Kit (402-K-95-001)
at   http://www.epa.gov/iaq/schools.  There is  no  website  specifically  relating to the survey.
Inquiries may be made directly to the EPA Office of Indoor Environments.
FY 2005  Performance Measure;  Office Workers improved indoor air  quality in their
workplaces.

Performance Database:  The performance database consists of two sources, requested copies of
building indoor air quality guidance documents, (e.g. Building Air Quality, I-Beam, and related
guidance Mold Remediation  in Schools and Commercial Buildings) and training conducted
through  cooperative  agreements  or  other  government  agencies  (e.g., General Services
Administration (GSA)) using EPA's documents. In addition,  EPA conducted a voluntary, pilot
survey of building owners and managers in 2001 to determine the use of indoor air quality (IAQ)
management practices hi U.S. office buildings.

Data Source:  The survey was developed by EPA and distributed by Building  Owners and
Managers Association (BOMA).  The survey's purpose and design received approval from the
Office of Management and Budget. The survey is not administered on an annual basis.

Methods, Assumptions and  Suitability:   EPA developed a seven-page survey  of multiple-
choice questions that requested each building owner or manager to supply, information regarding:
the size and uses of a selected building; documentation of management practices employed in the
building; how the heating, ventilating, and air-conditioning systems  are managed; how pollution
sources are addressed; housekeeping and pest management practices; remodeling and renovation
activities; and responses  to tenant complaints regarding  IAQ.  EPA's contractor  developed a

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project database to facilitate entry,  storage and reporting statistics obtained from the survey.
Based upon random sampling of membership lists from BOMA, the International Facilities
Managers Association (IFMA) and buildings managed by the General Services Administration
(GSA), the contractor generated a sampling frame.  The final sample size, (and survey recipient
list) was 3,612 and we received 591  completed surveys.   The survey results identified both
strengths and weaknesses in building management practices hi U.S. office buildings.

QA/QC  Procedures:   The survey  was  focus group  tested and  peer-reviewed by IAQ
professionals to ensure that respondents would understand the  questions and provide accurate
responses.  It was also designed by a statistician to ensure reliability of the data collected.  Each
survey mailed was assigned a unique identifier to facilitate the tracking of survey  responses
within the database. BOMA, EPA's cooperative partner, ensured accuracy and completeness of
submitted surveys by reviewing each submission prior to data entry.  A double-entry protocol for
all data entry was implemented to ensure an accuracy rate of at least 99%; each survey form was
entered into the database twice, after which a computer program identified any variances. Two-
percent of the records were randomly checked to  ensure that accuracy goals were met.  BOMA
was responsible for tracking survey responses, entering the survey responses into the database,
maintaining the data hi a secure environment and providing  quality assurance/quality control of
all survey activities.

After the quality assurance checks on the data were performed, EPA's contractor aggregated the
data analyses.  EPA and the contractor developed a method to score the responses for each item
on the questionnaire and computed an index of IAQ management practices.  The quality of the
scoring program results was assured by random inspection and correction, if necessary. The IAQ
indices were analyzed using analysis-of-variance techniques  to  identify  covariates of IAQ
practices that could be used in considering future program initiatives.

Data Quality  Review:  BOMA had responsibility for the accuracy  of  data entered into the
database.   Quality assurance safeguards were  used in the data entry. BOMA,  and EPA's
contractor reviewed individual survey responses  and data for accuracy during the aggregation
and analyses activities.

Data Limitations: The primary limitation associated with basing estimates on requests for
guidance documents and training is  the unknown factor of how many of the requests result hi
actions resulting hi improved indoor air quality.  The survey provides  a  reference point on
progress. The  survey results are subject to the limitations  inherent hi survey sampling.  The
response rate of 14% for the survey was low due  to the timing of the survey administration and
subsequent events hi September and October 2001.

Error Estimate:  4% precision at a 95% confidence level.

New/Improved Data or Systems: None

References: There is no website specifically relating to this survey. Inquiries may be made
directly to EPA's Office of Ah- and Radiation, Indoor Environments Division.
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COORDINATION WITH OTHER AGENCIES

      EPA works closely through a variety of mechanisms with a broad range of Federal, state,
Tribal, and local government agencies, industry, non-profit organizations, individuals as well as
other nations to promote more effective approaches to identifying and solving indoor air quality
problems.  At the Federal level, EPA works closely with:

     *    The Department of Health and Human Services (DHHS) to develop and conduction
          programs aimed at reducing children's exposure to known indoor triggers of asthma,
          including secondhand smoke;
     •    Department of Housing and Urban Development (HUD) on home health and safety
          issues, especially those affecting children;
     •    Consumer Product Safety Commission  (CPSC) to identify  and mitigate the health
          hazards of consumer products designed for indoor use;
     •    Department of Education (DoEd) to  encourage construction of schools with good
          indoor air quality; and
     "    Department of Agriculture (USDA) to encourage USDA Extension Agents to conduct
          local projects designed to reduce risks  from indoor air quality.

      EPA plays a leadership role on the President's  Task Force on Environmental Health
Risks and Safety Risks to Children, particularly with respect to asthma and school environmental
health issues.

      As Co-chair of the interagency Committee on Indoor Air Quality (CIAQ), EPA works
with the CPSC, the Department of Energy, the National Institute for Occupational Safety and
Health, and the Occupational Safety and Health Administration to review EPA draft
publications, arrange the distribution of EPA publications, and coordinate the efforts of Federal
agencies with those of state and local agencies concerned with indoor air issues.
STATUTORY AUTHORITIES

Clean Air Act Amendments of 1990 (CAA)
Indoor Radon Abatement Act (IRAA), Section 306
Radon Gas and Indoor Air Quality Research Act of Title IV of the Superfund Amendments and
   Re-authorization Act (SARA) of 1986
Toxic Substances Control Act (TSCA), section 6,  Titles II, and Title III (15 U.S.C. 2605 and
   2641-2671), and Section 10
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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                         Clean Air and Global Climate Change
OBJECTIVE;  Protect the Ozone Layer

       By 2010, through worldwide action, ozone concentrations in the stratosphere will have
stopped declining and slowly begun the slow 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.

                                  Resource Summary
                                 (Dollars in Thousands)

Protect the Ozone Layer
Environmental Program & Management
Buildings & Facilities
Inspector General
Total Workyears
FY2003
Actuals
$18,145.2
$17,892.5
$164.4
$88.3
39.2
FY2004
Pres. Bud.
$19,069.4
$18,802.0
$152.8
$114.6
36.1
FY2005
Pres. Bud.
$21,813.7
$21,516.2
$164.7
$132.8
36.7
FY 2005 Req. v.
FY 2004 Pres Bud
$2,744.3
$2,714.2
$11.9
$18.2
0.6
                                    Program Project
                                 (Dollars in Thousands)

Stratospheric Ozone: Domestic Programs
Stratospheric Ozone: Multilateral Fund
Administrative Projects
TOTAL
FY 2003
Actuals
$5,994.8
$9,518.9
$2,631.5
$18,145.2
FY2004
Pres. Bud.
$5,786.6
$11,000.0
$2,282.8
$19,069.4
FY2005
Pres. Bud.
$5,839.6
$13,500.0
$2,474.1
$21,813.7
FY 2005 Req. v.
FY 2004 Pres Bud
$53.0
$2,500.0
$191.3
$2,744.3
FY 2005 REQUEST

       The stratospheric ozone layer protects life on earth by preventing harmful UV radiation
from reaching the earth's surface.  Scientific evidence amassed over the past 25 years has shown
that chlorofluorocarbons (CFCs), halons, hydrochlorofluorocarbons (HCFCs), methyl bromide,
and other halogenated chemicals used around the world are destroying the stratospheric ozone
layer.78 Increased levels of UV radiation due to ozone depletion may lead to a greater chance of
overexposure to UV radiation and consequent health effects such as skin cancer, cataracts, and
78 World Meteorological Organization (WMO). "Scientific Assessment of Ozone Depletion: 2002." WMO: Geneva,
Switzerland. February 2003.

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other illnesses.   Skin cancer is the most common type of cancer and may account for more than
50 percent of all cancers in adults.80  Increased UV levels have also been associated with other
human  and  non-human  endpoints,  including immune  suppression and  effects  on aquatic
ecosystems and agricultural  crops.  However, additional research is necessary to quantify and
model these effects.

Results to be Achieved under this Objective

       EPA will achieve this objective in FY 2005 through implementation of significant goals
in the domestic and international phase-out of ozone  depleting  substances (ODSs).   EPA
estimates that, in the United States alone, the worldwide phase-out of ODSs will save 6.3 million
lives from fatal cases of skin cancer, and will avoid 299 million cases of non-fatal skin cancers
and 27.5 million cases  of cataracts between  1990 and 2165.81  This estimate is based on the
assumption that  international ODS phase-out targets will be achieved, which will allow the
ozone layer to begin recovering by the middle of this century. According to current atmospheric
research, the ozone layer is not expected to recover until the mid-21st century at the earliest, due
to the very long lifetimes of ODSs.82 Given that ozone recovery will take several  decades, EPA
will continue education and  outreach efforts to encourage behavioral changes that reduce UV-
related health risks.

Stratospheric Ozone: Domestic Programs

       EPA will implement the provisions of the Clean Air Act Amendments of 1990 (the Act)
and the Montreal Protocol on Substances that Deplete the  Ozone  Layer (Montreal Protocol),
which will lead to the reduction  and control of ODSs in the U.S. and lower health risks to the
American  public due to  exposure  to UV radiation.  The Act provides  for a phase-out of
production and consumption of ozone-depleting  chemicals, and requires controls on various
products containing ODSs.  As a signatory to the Montreal Protocol, the U.S. also is committed
to regulating and enforcing its terms domestically.  In carrying out the requirements of the Act
and the Montreal Protocol, EPA will continue to implement the domestic rulemaking agenda for
reduction and control of ODSs and will enforce rales controlling their production, import, and
emissions.  EPA's program will  combine market-based regulatory approaches with sector-
specific technology  guidelines and will facilitate the development and commercialization of
alternatives to methyl bromide and HCFCs.
79 World Health Organization. "Solar Radiation and Human Health: Fact Sheet No. 227." August 1999. Accessed Decenber 30,
2003. Available on the Internet at: www.who.int/inf-fs/en/fact227.hrml.
80 American Cancer Society. "What are the Key Statistics for Melanoma?" Accessed December 30, 2003. Available on the
Internet at: www.cancer.org/docroot/CRI/CRI_0.asp.
81 U.S. Environmental Protection Agency (EPA). The Benefits and Costs of the Clean Air Act 1990-2010: EPA Report to
ss. EPA: Washington, DC. November 1999.

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82 WMO, February 2003.

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       Pollution  prevention   is   an
important element  in  achieving  the
ozone  protection   objective.    The
National  Emission Reduction Program
will require recovery and recycling or
reclamation of ODSs, primarily in the
air-conditioning   and    refrigeration
sectors.  Also, under the Significant
New Alternatives Policy (SNAP), EPA
will    review   newly    developed
alternatives to ODSs and, if necessary,
will  restrict use of alternatives for a
given  application   that  are  more
harmful  to  human  health  and  the
environment on an  overall basis.   In
addition,  EPA  will join  with other
Federal  agencies   to  facilitate  the
transition away from remaining uses of
ODSs  such  as  methyl  bromide and HCFCs,
agencies to curb illegal imports of ODSs.
         U.S. Significant Goals in
 Controlling Ozone-Depleting Substances
           I CFCs j! Methyl Bromide iH HCFCs
and will work  with  Federal and  international
       Given that  Americans will be exposed to higher levels of UV radiation even  after
program goals have been met, EPA will undertake efforts to inform the public about health risks
associated with UV radiation exposure and encourage sun safely behaviors that help to reduce
risk.  The Agency  is  placing special emphasis on education and outreach to children, who are
particularly vulnerable to UV overexposure, through the SunWise School Program.

Accomplishments of the Domestic Stratospheric Ozone Protection Program include:

       "     Implementation of the phase-out  of the following Class I  chemicals:   CFCs,
             halons, methyl  chloroform,  carbon  tetrachloride,  chlorobromomethane, and
             hydrobromofluorocarbons (HBFCs).

       •     In FY  2002 and  FY 2003, development  of a marketable allowance allocation
             program to ensure graduated phaseout of HCFCs, leading to  full phaseout by
             2030, in compliance with the Montreal Protocol.  In FY 2003, EPA implemented
             the phase-out of HCFC-141b.

       Implementation of a  graduated phase-out of methyl bromide, employing marketable
allowances and also allowing for quarantine, pre-shipment, emergency and critical uses. In FY
2002, EPA reduced methyl bromide production and import by 50 percent from the 1991 baseline.
In FY 2002, EPA collaborated with the U.S. Department  of Agriculture (USDA)  and the
Department of State, among other Federal agencies, to receive, analyze, compile arid submit the
first U.S. nomination for critical use exemptions from the 2005 methyl bromide phase-out.  In
FY 2003, EPA reduced'methyl  bromide production  and  import by 70 percent from.the  1991
baseline.  Simultaneously, EPA collaborated with the USDA and industry to test and register
alternatives to methyl bromide.  To  date, EPA has registered  sufuryl fluoride,  a significant

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methyl bromide alternative for stored traits, nuts, and grains, and estimates that up to 20% of nut
crops, 40% of dried fruit and 2% of stored grains will transition to this newly available chemical.
In addition, EPA has registered some herbicides that may be effective alternatives to  methyl
bromide  when used in combination  with  1,3-dichloropropene, a  widely used fumigant.
Combination alternatives to methyl bromide  are particularly of use in the southeastern U.S.,
where heavy wind pressures render some alternatives ineffective. EPA registered halosulfuron-
methyl, an herbicide that may be used on tomatoes, eggplants, peppers, and cucurbits, in 2002
and also recently registered trifloxysulfuron, an herbicide for use on tomatoes.

       •      Monitoring, interception,  and prosecution  of illegal imports of ODSs, through
             collaboration with the Department of Justice and the Department of Homeland
             Security.
       •      Implementation of an essential use  allowance program for production and
             importation of CFCs and other ODSs  needed for vital applications,  particularly
             metered-dose inhalers for asthma and other respiratory illnesses. An estimated 20
             million patients had asthma in 2001; most of these patients rely on metered-dose
             inhalers for treatment.83  Medical consensus  is that primary treatment of  asthma
             and COPD should be by the inhaled route, and MDIs are the dominant inhaled
             delivery system for all categories of drugs.
       •      Continued recovery and  recycling of ODSs and alternatives  in the  U.S. and
             abroad.
       •      Regulatory review and outreach under the SNAP to ensure that substitutes for
             ozone-depleting chemicals used across major industry and consumer sectors are
             safer for public health and the environment than the ODSs they replace.  During
             FY 2002 and FY 2003, EPA listed 30 additional possible alternatives to ODSs as
             acceptable for use in refrigeration and air-conditioning, solvent cleaning, aerosols,
             insulating  foams, fire protection, adhesives,  coatings and inks, bringing the
             combined total of acceptable substitutes to approximately 410 since  1994.  EPA
             also restricted the use of several proposed  substitutes  to prevent unacceptable
             risks to the environment, consumers, and worker health and safety.
       "      Implementation of the SunWise  School Program, with the goal of reducing the
             health risks to children and their caregivers from overexposure to UV  radiation.
             During the 2002-2003 school  year,  the SunWise program grew from 3,750 to
             7,277 participating schools in 50 states, Puerto Rico, and the District of Columbia.
             SunWise  also broadened its  reach  as seven science  museums incorporated
             SunWise into their programming.

Stratospheric Ozone: Multilateral Fund

       Under the Montreal Protocol, the U.S. and other  developed countries contribute to the
Multilateral Fund to support projects and activities  that eliminate the production and use of
ODSs by developing countries.  As of June 2, 2003, the United States and 184 other countries are
Parties to the Montreal Protocol.  The United States has repeatedly affirmed its  commitment to
this  international  treaty and to demonstrating world leadership  by phasing out  domestic
production of ODSs, as well as helping other countries find suitable alternatives.  Because the
Protocol  makes developing country compliance contingent on support from the  Multilateral
83  American Lung Association. "Trends in Asthma Morbidity and Mortality." ALA: New York, NY. March 2003.
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Fund, continued support for the Fund is critical if we are to ensure restoration and protection of
the ozone layer.

Accomplishments of the Multilateral Fund include:

       •  To date, the fund has supported over 4,480 activities in 134 countries that, when fully
          implemented, will prevent annual emissions  of more than 174,000 metric tons of
          ODSs.  Approximately  60% of projects  have been implemented to  date, and the
          remaining projects are expected to be implemented by 2008.

       •  In addition, the fund has reached long-term agreements to dismantle over two-thirds
          of developing country CFC production capacity and virtually  all of developing
          country halon production  capacity.   Final  closure of related facilities  depends on
          continued funding.

       •  EPA's FY 2003 contribution to the  Multilateral Fund helped the  fund support cost-
          effective projects designed  to build capacity and eliminate ODS  production and
          consumption in over 60 developing countries. OK
FY 2005 CHANGE FROM FY 2004

EPM

•      (+2,500,000): This increase assists the U.S. in meeting its funding commitment to the
Montreal Protocol Multilateral Fund.

•      There are additional increases for payroll,  cost of living, and enrichment for existing
FTE.


ANNUAL PERFORMANCE GOALS AND MEASURES

Restrict Domestic Consumption of Class II HCFCs

In 2005     Restrict domestic consumption of class II HCFCs below 9,906 OOP-weighted metric tonnes (OOP
           MTs) and restrict domestic exempted production and import of newly produced class I CFCs and
           halons below 10,000 OOP MTs.

In 2004     Restrict domestic consumption of class n  HCFCs below  9,906 ODP-weighted metric tonnes (ODP
           MTs) and restrict domestic exempted production and import of newly produced class I CFCs and
           halons below 10,000 ODP MTs.

In 2003     End of year FY 2003 data will be available in late 2004 to verify restriction of domestic consumption
           of class II HCFCs below 9,906 ODP-weighted metric tonnes (ODP MTs) and restriction of domestic
           exempted production and import of newly produced class I CFCs and halons below 10,000 ODP MTs.
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 Performance Measures:                 FY2003       FY2004      FY2005
                                     Actuals      Pres. Bud.     Pres. Bud.
 Domestic   Consumption  of  Class II
 HCPCs
                                     Data Lag        <9,906        <9,906         ODPMTs
 Domestic  Exempted  Production  and
 Import of Newly Produced Class I CFC s
 andHalons                            Data Lag       <10,000       <10,000        ODPMTs

Baseline:    The base of comparison for assessing progress on the 2005 annual performance goal is the domestic
          consumption cap of class II HCFCs as  set by the Parties to the Montreal Protocol.  Each Ozone
          Depleting Substance (ODS) is weighted based on the damage it does to the stratospheric ozone - this is
          its ozone-depletion potential (ODP). Beginning on January 1, 1996, the cap was set at the sum of 2.8
          percent of the domestic ODP-weighted consumption of CFCs in 1989 plus the OOP-weighted level of
          HCFCs in 1989. Consumption equals production plus import minus export.
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure;   Restrict Domestic  Consumption  of Class II HCFCs
Restrict Domestic Exempted Production and Import of Newly Produced Class I CFCs and
Halons

Performance Database:  The Allowance Tracking System (ATS) database is maintained by the
Global Programs Division (GPD). ATS is used to compile and analyze quarterly information on
U.S. production,  imports,  exports, transformations, and allowance trades of ozone-depleting
substances (ODS).

Data  Source:  Progress on restricting domestic exempted consumption  of Class I CFCs and
halons is tracked by monitoring industry reports of compliance with EPA's phaseout regulations.
Data  are provided by U.S.  companies producing,  importing, and exporting ODS.  Monthly
information on  domestic production, imports,  and  exports  from  the International  Trade
Commission is maintained hi the ATS.  Corporate data are typically submitted as quarterly
reports.  Specific requirements as outlined in the Clean Air Act are available on the Internet at:
http://www.epa.gov/oar/caa/caa603 .txt

Methods, Assumptions and Suitability:  Data are aggregated across all U.S. companies for
each individual ODS to analyze U.S. total consumption and production.

QA/QC Procedures:  Reporting and record-keeping requirements are published in 40 CFR Part
82, Subpart A,  Sections  82.9  through 82.13.   These  sections  of the Stratospheric Ozone
Protection Rule specify the required data and accompanying documentation that companies must
submit or maintain on-site to demonstrate their compliance with the regulation.

The ATS data are subject to a Quality Assurance Plan.  In addition, the  data are  subject  to an
annual quality assurance review, coordinated by OAR staff separate from those on the  team
normally responsible for data collection and maintenance.  The ATS is programmed to ensure
consistency of the data elements reported by companies.  The tracking system flags inconsistent
data for review and resolution by the  tracking system manager. This information is then cross-

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checked with compliance data submitted by reporting companies. The GPD maintains a user's
manual for the ATS that  specifies the standard operating procedures for data entry and data
analysis.   Regional inspectors perform inspections  and audits  on-site at  the facilities  of
producers, importers, and exporters.  These  audits verify the accuracy of compliance data
submitted to EPA through examination of company records.

Data Quality Reviews: The Government Accounting Office (GAO) completed a review of U.S.
participation in five international environmental agreements, and  analyzed data submissions
from the U.S. under the Montreal Protocol on Substances the Deplete the Ozone Layer.   No
deficiencies were identified hi then- January 2003 report.

Data Limitations: None.  Data are required by the Clean Air Act.

Error Estimate: None

New/Improved Data or Systems: The GPD continues to explore an improved system whereby
direct electronic reporting would be possible.

References: See http://www.epa.gQy/ozone/desc.html for additional information on ODSs. See
http://www.unep.ch/ozone/montreal.shtnil  for  additional  information   about  the Montreal
Protocol. See http://wvoy.unmfs.org/ for more information about the Multilateral Fund.
EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLANS

       EPA continues to place a great emphasis on improving its performance measures.  In
addition  to and complementing the Agency's outcome-based  environmental performance
measures, some programs are  developing efficiency  measures.   Efficiency measures  are
structured as  a ratio  of key program inputs (e.g. tune, dollars, FTE) to program outputs or
outcomes. They are intended to provide EPA programs with additional information that can be
used for sound decision-making and program management.

       Below are EPA's proposed efficiency measures for selected programs.

       Stratospheric Ozone:  For every $50 invested by EPA in the domestic ODS phaseout
program  and  the Multilateral  Fund,  the US will avoid 1 skin cancer fatality related to UV
radiation exposure.  This outcome assumes that the US and other Parties to the Montreal Protocol
achieve planned phaseout targets, and that present funding levels are continued.
COORDINATION WITH OTHER AGENCIES

       In an effort to curb the illegal importation of ODSs, an interagency task force was formed
consisting of representatives from EPA, the Departments of Justice, Homeland Security, State,
and Commerce, and the Internal Revenue Service. Venting of illegally imported chemicals has
the potential to prevent the United States from meeting the goals of the Montreal Protocol to
restore the ozone layer.


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       EPA works very closely with the Department of State and other Federal agencies, as
appropriate, in international negotiations among Parties to the Protocol.  EPA works with the
Office of the United States Trade Representative  to  analyze potential trade implications hi
stratospheric protection regulations that affect imports and exports.

       EPA is working with the USDA and the Department of State to facilitate research and
development of alternatives  to methyl bromide.   EPA collaborates with  USDA and the
Department of State to  prepare U.S. requests  for emergency and critical use exemptions of
methyl bromide. EPA is providing input to USDA  on  rulemakings for methyl bromide-related
programs.  EPA consults with the Food and Drug  Administration (FDA) on  the potential for
domestic methyl bromide needs.

       EPA also coordinates closely with FDA to ensure that sufficient supplies of CFCs are
available for the production of life-saving metered-dose inhalers for the treatment of asthma and
other lung diseases.  This partnership between EPA and FDA combines the critical goals of
protecting public health and limiting damage to the stratospheric ozone layer.

       EPA works with the Centers for Disease Control and the National Weather Service to
coordinate the UV Index and the health  messages  that accompany index reports.  EPA is a
member  of the Federal  Council on Skin Cancer Prevention, which educates and protects all
Federal employees from the risks of overexposure to  UV radiation.

       In addition to collecting its own UV data, EPA coordinates with the National Aeronautics
and Space Administration (NASA) and the National Oceanic and Atmospheric Administration to
monitor the state of the  stratospheric ozone layer.  EPA also works with NASA on assessing
essential uses and other  exemptions for critical shuttle and rocket needs, as well as effects of
direct emissions of high-speed aircraft flying in the stratosphere.

       EPA coordinates with the Small Business Administration to ensure that proposed rules
are developed in accordance with the Small Business Regulatory Flexibility Act.
STATUTORY AUTHORITIES

Clean Air Act Amendments of 1990 (CAA), Title I, Parts A and D (42U.S.C. 7401-7434, 7501
   7515), Title V (42 U.S.C. 7661-7661f), and Title VI (42 U.S.C. 7671-7671q)
Pollution Prevention Act of 1990 (42 U.S.C. 13101-13109)
Resource Conservation and Recovery Act (42 U.S.C. 6921-6926 and 6938) sections 3001-3006
   and 3017
The Montreal Protocol on Substances that Deplete the Ozone Layer
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                            Environmental Protection Agency

            FY 2005 Annual Performance Plan and Congressional Justification

                          Clean Air and Global Climate Change
OBJECTIVE: Radiation

       Through 2008, working with partners,  EPA will minimize unnecessary releases  of
radiation and be prepared to minimize  impacts to human health and the environment should
unwanted releases occur.

                                   Resource Summary
                                  (Dollars in Thousands)

Radiation
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
Building & Facilities
Inspector General
Total Workyears
FY 2003
Actuals
$30,046.8
$19,881.9
$3,058.4
$6,284.3
$715.4
$106.6
168.1
FY2004
Pres. Bud.
$34,858.9
$21,060.8
$3,027.2
$9,797.7
$817.4
$155.8
185.0
FY2005
Pres. Bud.
$34,718.0
$20,914.1
$3,207.1
$9,574.9
$868.7
$153.2
183.9
FY 2005 Req. v.
FY 2004 Pres Bud
($141.0)
($146.7)
$179.8
($222.8)
$51.3
(-$2.6)
-1.2
                                    Program Project
                                  (Dollars in Thousands)

Radiation: Protection
Radiation: Response Preparedness
Homeland Security: Preparedness, Response,
and Recovery
Administrative Projects
TOTAL
FY 2003
Actuals
$15,743.2
$4,128.8
$998.3
$9,176.5
$30,046.8
FY2004
Pres. Bud.
$17,392.7
$4,081.2
$3,703.6
$9,681.4
$34,858.9
FY2005
Pres. Bud.
$15,620.4
$4,849.9
$4,144.3
$10,103.4
$34,718.0
FY 2005 Req. v.
FY 2004 Pres Bud
($1,772.3)
$768.7
$440.7
$421.9
($141.0)
FY 2005 REQUEST

       EPA will continue to meet the statutory requirements for management of radioactive
wastes and control of radioactive emissions.  The Agency also will fulfill its responsibilities
under Presidential Decision Directives for radiological emergency preparedness and response.84
  Information about authorizing and relevant laws, presidential decision directives, executive orders, federal plans, and
regulations related to EPA's radiation program can be accessed at: http://www.epa.gov/radiation/laws/

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       These  responsibilities form  the  core of our  strategy to protect the public and  the
environment from unnecessary  exposure to radiation.85 EPA also is positioned to  anticipate
emerging issues and identify non-traditional mechanisms of exposure to the public and  the
environment.

       EPA  works  with other  Federal agencies,  states., Tribes,  and  industry to develop
innovative ways to  minimize radiation exposures through  training,  public  information, and
voluntary programs.

Results to be Achieved under this Objective

       EPA helps prevent public exposure to harmful levels of radiation hi the environment by
working with other Federal, state, Tribal, and local agencies  to assess exposure risks, manage
radioactive releases and exposures, ensure proper disposal of radioactive materials, and provide
the public with information about radiation and its hazards.86  Should  an event occur, EPA
maintains a high level of preparedness to  respond to radiological emergencies.

Radiation: Protection

       To help protect Americans  from  exposure  to  harmful levels of  radiation in  the
environment, EPA is charged with responsibility for a number of activities. One of EPA's major
radiation-related responsibilities is to certify that all radioactive waste shipped by the Department
of Energy (DOE) to the Waste Isolation Pilot Plant (WIPP) is permanently and safely disposed
of, consistent with EPA standards.87  EPA conducts inspections of waste generator facilities and
biennially evaluates DOE's compliance with applicable environmental  laws and regulations.
Every five years EPA must re-certify that the WIPP will comply with EPA's radioactive waste
disposal regulations.

       Mining and processing of naturally-occurring radioactive materials for use hi medicine,
power generation, consumer products, and industry generates emissions and waste. EPA protects
people  and the environment  from harmful and avoidable exposure  to radiation by assessing
exposure risks and providing information about radiation and its hazards.   EPA is the lead
Federal agency for  responding to international  emergencies  involving  radioactive  materials.
EPA also provides guidance and training to other Federal and state agencies in preparing for
emergencies at U.S.  nuclear plants,  for transportation accidents  involving  shipments  of
radioactive materials, and for acts of nuclear terrorism.  EPA sets protective limits on radioactive
emissions for all  media—air,   water,  and  soil—and develops  guidance  for cleaning up
radioactively-contaminated Superfund sites.

       We will ensure that  the Agency has appropriate methods to manage radioactive releases
and  exposures. Approaches to meet this objective will include health risk site assessments, risk
modeling, clean-up, and waste management activities; voluntary programs to minimize exposure
to radiation hi commercial  products and industrial applications, national radiation monitoring,
and  radiological emergency response; and provision of Federal guidance to  our international,
Federal, state, and local partners.
85 Additional information can be accessed at: http://www.epa.gov/radiation/
86 Additional information can be accessed at: http://www.epa.gov/radiation/assessment/
87 Additional information can be accessed at: http://www.epa.gov/radiation/WIPP/

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       EPA will continue working with other Federal agencies such as the Nuclear Regulatory
Commission (NRC), DOE, the Border and Transportation Security directorate of the Department
of Homeland Security (DHS), and the Department of State, as well as with state agencies and
international  organizations to prevent  metals  and  finished products  suspected  of having
radioactive contamination from entering the country.  EPA also will create partnerships with
states,  local agencies, and Tribes to locate and secure lost, stolen, or abandoned radioactive
sources within the U.S.  and develop voluntary programs with state  and local agencies and
industry to investigate and promote pollution prevention, operational practices, and technologies
to reduce industrial releases of radioactivity.

       EPA will  continue to evaluate human health and environmental risks from radiation
exposure.  EPA is implementing its strategy  to address Technologically Enhanced Naturally
Occurring Radioactive Material  (TENORM) by  developing and  compiling sector-specific
technical  information, by interacting with  Regional offices  and  Tribal  governments  on
educational and clean-up  efforts, and by exploring ways to partner with governmental and non-
governmental interests.8

       In FY 2005, EPA will provide national-level guidance on the risks posed by radioactive
materials in the environment, including technical guidance for conducting risk assessments. EPA
will accomplish this by working with the public, industry, states, Tribes and other governmental
agencies to inform and educate people about radiation risks and promote actions that reduce
human exposure.  EPA, in partnership with other Federal agencies, will promote the management
of radiation risks  in a consistent and safe manner at Superfund, DOE, Department of Defense
(DOD), state, local and other Federal sites by:

       "      Evaluating human health and environmental risks from radiation site exposure,
              developing models  of the environmental fate and transport of radionuclides, and
              providing a basic understanding of the biological effects of radiation.
       •      Developing risk assessments, remediation technologies, and measurement and
              information systems.
       •      Providing training and direct site assistance including laboratory, field, and risk
              assessment support at sites with actual or suspected radioactive contamination.

       The radiation program also maintains an on-going capability to provide radioanalytical
and mixed waste analytical data on environmental samples to support site assessment, clean-up,
and response  activities.  Finally, EPA coordinates with other  nations on  select radiological
issues, including risk assessment methodologies and risk management approaches.

Radiation: Response Preparedness

       To help protect Americans from unexpected radiological events, EPA is charged with
maintaining a high level  of preparedness to respond to radiological emergencies. In FY 2005,
EPA's Radiological Emergency  Response Team (RERT),  a  component of the  Agency's
emergency response structure, will continue to prepare for incidents for which EPA is the Lead
Federal Agency under the Federal Radiological Emergency Response Plan, as well as prepare to
  Additional information can be accessed at:  http://www.epa.gov/radiation/tenorm/about.htm
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support other Lead Federal Agencies, as appropriate.  EPA will coordinate with its interagency
partners to revise Federal radiation emergency response plans, develop radiological emergency
response standard operating procedures and guidance for coordination of Agency support to
other Federal and state response agencies, and conduct training and exercises to enhance the
ability of the RERT to fulfill its responsibilities in response actions.89

       EPA will  conduct exercises  and training  along  with planning  and participating in
international, Federal, and field exercises including anti-terrorism activities with the NRC, DOE,
and DOD.  We will train state, local and Federal officials and provide technical support to state
radiation, solid waste, and health programs that participate in Radiological Emergency Response.
We also will maintain and update Protective Action Guides (PAGs) for use by Federal, state and
local officials and provide training on the use of the PAGs. This includes conducting Protective
Action Guide workshops and radiological emergency response exercises.90

       We  will  provide  policy development  and on-site  technical  support,  and  asset
management,  and plan  intra-Agency coordination and  field exercises  for EPA's  counter-
terrorism program. We also will provide information to the public on EPA Emergency Response
activities and capabilities. We will continue to provide scientific data and analysis on radiation
emergency response  programs across  the Agency.  We will maintain readiness for radiological
emergency responses, which includes participation in mock emergency response situations.

Homeland Security: Preparedness Response and Recovery

       Under the National Strategy for Homeland Security and Federal response plans, EPA has
specific response  and recovery  responsibilities.  The Agency will  continue  to strengthen its
response capabilities, clarify its  roles and responsibilities to ensure  an effective response, arid
promote improved response capabilities across government and industry in areas where EPA has
unique knowledge and expertise.

       EPA's Environmental Radiation Ambient  Monitoring  System (ERAMS) is  the only
nationwide  environmental radiation monitoring program  that provides information about the
wide-scale spread of radioactive material  from nuclear or radiological  incidents.91  ERAMS
includes a network of sampling stations throughout the United States that routinely monitors air,
water  (precipitation  and drinking water),  and milk for radioactive contamination.  Data from
ERAMS provide timely information  for making protective action decisions in the event of a
major nuclear or radiological event.

       ERAMS has  operated for over 30 years with  an average of one sampling site for each
type of media (air, precipitation, drinking water and milk) per state resulting in air monitoring
coverage for approximately 24 percent of the population. The current response time for results is
measured in days, allowing time for collection  of samples,  shipment to the laboratory, and
performance of analyses.

       Planned upgrades to the National  Monitoring System in FY 2005  will improve our
response time and data dissemination  from days to  hours.  These  upgrades will provide the
89 Additional information can be accessed at: http://www.epa.gov/radiation/rert/rert.htm
90 Additional information can be accessed at:  htrp://www.epa.gov/radiation/rert/pags.htm
91 Additional information can be accessed at:  http://www.epa.gov/narel/erams/

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Agency with greater access to near real-time data, enabling officials to make rapid decisions
about protecting public health, thereby improving preparedness for radiological incidents. When
fully implemented hi FY 2009, ERAMS will have 180 fixed air monitoring stations increasing
U.S. population coverage  from 24  percent  to  70 percent.   Planned improvements to the
monitoring system during FY 2005 include:

       •     Production  and  development  of 60  air  samplers  with real-time  gamma
             spectrometric monitoring capability
       "     A contract to deploy and maintain ambient air radiation samplers
       •     Agreements with site operators
       •     Testing of 40 deployable monitoring systems at remote sites

       The monitoring system is supported by an electronic database and telemetry system that
gathers data from the National Monitoring System, RERT, and other sources. In FY 2005, the
database will be tested for the ability to review data, perform dose/risk calculations, and transmit
the results in a secure mode. Once testing is complete, the database will come online.
FY 2005 CHANGE FROM FY 2004

EPM

«      (+ $209,900):  This  increase represents  a  redirection  of resources from Radiation:
Protection to Radiation: Response Preparedness.  This increase will allow us to work with local
emergency responders to ensure that they can respond to emergencies involving radiation.

•      (-  $521,100):   This  decrease represents  a redirection of resources from Radiation
Protection to Radiation: Response Preparedness. Two workyears have also been redirected to
Goal 1, Objective 2.

S&T

•      (+ $558,800,  +9.0 FTE):  This  increase  to  Radiation:  Preparedness  represents a
redirection of resources  and workyears from Radiation:  Protection in order to better fund
emergency preparedness  and response activities.  We will work with communities and local
responders to ensure  that the adequate lab protocols  are followed in  situations  involving
radiation.

•      (+ $440,700,  +4.1 FTE):  This  increase  represents a redirection from Radiation:
Protection to expand and upgrade the existing radiation monitoring system (ERAMS).  With
additional resources we will continue to expand the ERAMS network to cover more areas as well
as upgrade the data system supporting it.

•      (-  $1,237,900,  -13.1 FTE):  This  decrease  represents a redirection in resources and
workyears from Radiation: Protection to higher priority  work in two other Radiation objective
areas:  (1)  Radiation:  Preparedness;  (2)  Homeland Security:  Preparedness, Response, and
Recovery.


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ANNUAL PERFORMANCE GOALS AND MEASURES

Ensure WIPP Safety

In 2005     Certify that 40,000 55-gallon drums of radioactive waste (containing approximately 120,000 curies)
            shipped by DOE to the Waste Isolation Pilot Plant are permanently disposed of safely and according to
            EPA standards.

In 2004     Certify that 36,000 55-gallon drums of radioactive waste (containing approximately  108,000 curies)
            shipped by DOE to the Waste Isolation Pilot Plant are permanently disposed of safely and according to
            EPA standards.

In 2003     36,041 drums (55 gallon) of radioactive waste shipped by DOE to the Waste Isolation Pilot Plant were
            permanently disposed of safely and according to EPA standards.

 Performance Measures:                   FY2003        FY2004       FY2005
                                           Actuals       Pres. Bud.     Pres. Bud.
 Number   of   55-Gallon   Drums   of
 Radioactive   Waste    Disposed    of
 According to EPA Standards                 •*<• nAt          •>* A™        ,,««««            T^_
         &                                 36,041          36,000        40,000            Drums

Baseline:    The Waste Isolation Pilot Plant (WIPP) near Carlsbad, NM was opened in May 1999 to  accept
            radioactive transuranic waste.  By the end of FY 2003, approximately 73,000 (cumulative) 55 gallon
            drums will be safely disposed. In FY 2005, EPA expects that DOE will ship an additional 40,000 55-
            gallon drums of waste.  Through  FY 2004, EPA expects that DOE will have shipped safely and
            according to EPA standards,  approximately 13% of the planned waste volume, based on disposal  of
            860,000 drums over the next 40 years.  Number of drums shipped to the WIPP facility on an annual
            basis is dependent on DOE priorities and funding. EPA volume estimates are based on projecting the
            average shipment volumes over 40 years with an initial start up.

Build National Radiation Monitoring System

In 2005     EPA will purchase 60  additional state of the art monitoring units and initiate deployment to  sites
            selected based on population and geographical coverage.  All old sampling will be replaced and
            population coverage will be expanded to 60%.

In 2004     EPA will purchase 60 state of the art radiation monitoring units thereby increasing EPA radiation
            monitoring capacity and population coverage from 37% of the contiguous U.S. population in FY 2002
            to 50% in FY 2004.
 Performance Measures:                     FY2003        FY2004        FY2005
                                             Actuals       Pres. Bud.      Pres. Bud.
 Purchase  and  Deploy   State-of-the  Art                                                        .
 Monitoring Units                                                                               "f s
                                                               60             60           Purchased

Baseline:    The current fixed monitoring system, part of the  Environmental Radiation Ambient  Monitoring
            System, was developed in the  1960s for the purpose of monitoring radioactive fallout from nuclear
            weapons testing.  The system  currently consists of 52 old, low-tech air particulate samplers which
            provide coverage in cities which represent approximately  24% of the population.  By 2005, EPA will
            upgrade the old system by purchasing 120 state-of-the-art units which wit be strategically located to
            cover approximatley 60% of the population. The current system's air samplers will be retired from
            service due to age, although some may be retained for emergency use.
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Homeland Security - Readiness & Response

In 2005    Verify that 50 percent of EPA's Radiological Emergency Response Team (RERT) members meet
          scenario-based response criteria.

Performance Measures:                    FY2003       FY2004       FY2005
                                       Actuals      Pres. Bud.     Pres. Bud.
Percentage of EPA RERT members that meet
scenario-based criteria                                                    „           „
                                                                     50           Percent

Baseline:   Currently, EPA assesses RERT readiness based on the ability of the RERT to: (1) provide effective
          field response, as defined today; (2) support coordination centers; and 3) provide analytical capabilities
          throughout as needed to support a single small-to-medium scale incident. These evaluation criteria
          will be reevaluated and revised in response to the Department of Homeland Security development of
          critieria for the Nuclear Incident Response Team established under the  Homeland Security Act of
          2002, which includes EPA RERT assets.


VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure: Purchase and Deploy State-of-Art Monitoring Units

Performance Data: Output Measure.  Data from the near real-time gamma component of the
Environmental Radiation Ambient Monitoring System (ERAMS) will be stored hi an internal
EPA  database at the  National Ah" and  Radiation Environmental Laboratory  (NAREL)  hi
Montgomery, Alabama. EPA monitors for radiation to provide data for nuclear and radiological
emergency response  assessments;  to  provide  data on ambient  levels  of radiation hi  the
environment  for baseline and trend analysis; and to inform the general  public  and public
officials.

Data Source: Environmental Radiation Ambient Monitoring System (ERAMS).  A total  of 60
near real-time monitoring units will provide data to the database at NAREL.

Methods, Assumptions and Suitability: Assuming that funding is secured during future years
and the project  receives all necessary  approvals, the existing air  sampling  equipment will be
replaced with state-of-the art air monitors that  include near real-time gamma radiation detection
capability. Addition of detectors and  communication systems will provide notification  about
significant radioactive contamination events to decision- makers within hours

QA/QC Procedures:   Quality Assurance and Quality Control  Procedures  will  follow the
Agency guidelines and be consistent  with a specific  Quality Assurance Plan that is  being
developed for the project.  All monitoring equipment will be periodically calibrated with reliable
standards and routinely checked for accuracy with onsite testing devices.  Laboratory analyses
of ak filters and other environmental  media are closely  controlled hi compliance with the
NAREL Quality Management Plan and applicable Standard Operating Procedures.

Data Quality Reviews: The database will screen all incoming data from the monitoring systems
for abnormalities as an indicator of either a contamination event or an instrument malfunction.
Data will be  held hi a secure portion of the database until verified by trained personnel. Copies
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of quality assurance and quality control testing will also be maintained to assure the quality of
the data.

Data Limitations:   Data are limited  in  near real-time to  gamma  emitting radionuclide
identification and quantification. Radiation levels from gamma-emitting nuclides that will be so
low as to be "undetectable" will be significantly below health concerns that require immediate
action. Lower levels of radioactive materials in the samples will be measured through laboratory
based analyses and data will be available within days after the sample is received.  Data will not
be available to the general public or others, except relevant decision-makers, until verified by
trained personnel.

Error Estimate:  The overall error in detection capability is estimated to be within 50% of the
actual concentration based on previous experience with similar measurement systems.  An error
analysis will be performed on the prototype systems during the process of detector selection.

New/Improved Performance Data or Systems: New air  samplers will maintain steady flow
rates that are measured  during operation  and corrected  for varying environmental  conditions.
Addition of gamma spectrometric detectors and computer-based multi-channel analyzers to the
air samplers provide near real-time analyses of radioactive  content in particles captured by the
filter. In addition to data collection, the onboard computer systems can communicate results of
analyses back  to a central database and even identify abnormal conditions that might require
action.   These improvements not only  include higher quality  data, but also will provide
information regarding contamination events to decision-makers within hours instead of days.
The  number and location of monitoring sites will  be unproved to provide representative
sampling for much more of the nation's population.

References: For a additional information about the continuous monitoring system, ERAMS see:
http://v\rvv\\r.epa.gov/narel/erams/aboutus.html#mission

FY 2005 Performance  Measure: Drums  of Radioactive Waste Disposed of according to
EPA Standards.

Performance  Data:  The Department of Energy  (DOE) Waste Isolation Pilot Plant (WIPP)
database contains the number of drums shipped by DOE waste generator facilities and placed in
the DOE WIPP. The WIPP is a DOE facility located in southeastern New  Mexico, 26 miles from
Carlsbad.  The WIPP Land Withdrawal  Act was  passed  by Congress in October 1992  and
amended in September 1996. The act transferred the land occupied by the WIPP to DOE  and
gave  EPA  regulatory  responsibility  for deterrnining  whether  the  facility complies with
radioactive waste disposal standards.

Data Source:  Department of Energy

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: The performance data used by EPA are collected and  maintained by DOE.
Under     EPA's      WIPP     regulations      (available      on      the      Internet:
http://www.epa.gov/radiation/wipp/background.htm,  all   DOE  WIPP-related  data must  be
collected and maintained under a comprehensive quality assurance program meeting consensus
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standards developed by the American Society of Mechanical Engineers (ASME) (available on
the Internet: http://www.asme.org/codes/ ).  EPA conducts  regular inspections  to ensure that
these quality assurance systems are in place and functioning properly; no additional QA/QC of
the DOE data is conducted by EPA.

Data Quality Reviews: N/A

Data Limitations: The DOE WIPP database contains the number of drums shipped by DOE
waste generator facilities and placed in the DOE WIPP.  Currently, there are five DOE waste
generator  facilities that are approved  to generate and ship  waste:  Los Alamos National
Laboratory,  Rocky  Flats  Environmental Technology  Site,  Hanford Site,  Idaho National
Engineering and Environmental Laboratory, Savannah River Site.

Before DOE waste generator facilities can ship waste to the WIPP, EPA must approve the waste
characterization controls and quality assurance procedures for waste identification at these sites.
EPA conducts frequent independent inspections  and audits  at  these sites  to verify continued
compliance with radioactive waste disposal standards and  to  determine if DOE is properly
tracking the waste and  adhering to specific waste component limits. Since 1998, EPA has
completed over 60 inspections prior to shipment of waste  to the WIPP facility.  Once EPA gives
its approval, the number of drums shipped to the WIPP facility on an annual basis is dependent
on DOE priorities and funding. EPA volume  estimates are based on projecting  the average
shipment volumes over 40 years with an initial start up.

New/Improved Data or Systems: None

References:  The Department of Energy National TRU Waste Management Plan Quarterly
Supplement http://www.wipp.ws/library/caolib.htmtfControlled contains  information  on the
monthly volumes of waste that are received at the DOE WIPP.

FY 2005 Performance Measure:  Percentage of EPA RERT members that meet scenario-
based criteria.

Performance Data:  To determine the effectiveness of RERT performance, an output measure
has been developed that scores RERT members on a scale of one (1) to 100 against scenario-
based criteria.  A baseline evaluation was performed in Fiscal Year (FY) 2003, based on the
effectiveness of  the  RERT in responses to actual incidents and  a  major national exercise
(TOPOFF2).  RERT members were evaluated in their ability  to:  (1) provide effective field
response, (2) support coordination centers, and (3) provide analytical capabilities and throughput
as needed to support a single small-to-medium scale incident.  Overall RERT effectiveness in
this baseline analysis was measured at approximately  13 percent.  In FY 2005, however, the
evaluation criteria will need to be reevaluated and revised in response to the changes enacted by
the Homeland Security Act of 2002. Under this Act, the Department of Homeland Security
(DHS) is required to develop evaluation criteria and test the effectiveness of the Nuclear Incident
Response Team  (NIRT), which will include EPA  RERT assets.  Thus,  the output measure
tentatively outlined above will be modified in cooperation with DHS to meet their needs.

Data Source:  Beginning in FY 2005, EPA expects the Department of Homeland Security to
maintain the data. DHS is responsible for assuring that all Federal Emergency Response assets

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maintain an adequate level of readiness (Homeland Security Act of 2002).  EPA assumes they
also will maintain a data system to evaluate and assess the readiness of assets across the federal
government.   EPA will perform evaluations of its own assets and report results under this
measure, but must rely on the DHS data source for key information.

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations: The expectations for performance of EPA's RERT are currently evolving.
Under Section 501 of the Homeland Security Act of 2002, Department of State's (DOS) Under
Secretary for Emergency Preparedness and Response will establish standards for EPA RERT
assets as part of the new Nuclear Incident Response Team. DHS will also evaluate the NIRT's
performance against these new standards. These criteria have not yet been developed. In
addition, the requirements for the RERT (i.e., what is actually expected of RERT members
during a response) may also change. This uncertainty means that the current evaluation may not
effectively reflect future criteria.

New/Improved Data or Systems: None

References:  The Homeland Security Act of 2002


COORDINATION WITH OTHER AGENCIES

      In addition to the specific activities described above, EPA continues to work with Federal
agencies including NRC, DOE, and DHS to prevent metals and finished products suspected of
having radioactive contamination  from entering  the country.   EPA also  works with  the
Department of Transportation on initiatives to promote use of non-nuclear density gauges for
highway paving.


STATUTORY AUTHORITIES

Atomic Energy Act of 1954, as amended, 42 U.S.C 2011 et seq. (1970), and Reorganization Plan
   #3 of 1970
Clean Air Act Amendments of 1990 (CAA)
Comprehensive Environmental Response  Compensation and  Liability Act  (CERCLA), as
   amended by the Superfund Amendments  and Reauthorization Act of 1986 (SARA)
Energy Policy Act of 1992, P.L. 102-486
Executive Order 12241 of September 1980, National Contingency Plan, 3 CFR, 1980
Executive Order  12656  of November  1988,   Assignment  of Emergency  Preparedness
   Responsibilities, 3 CFR,  1988.
Nuclear Waste Policy Act of 1982
Public Health Service Act, as amended, 42 U.S.C 201 et seq.


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Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended, 42 U.S.C 5121 et
   seq.
Safe Drinking Water Act
Title XIV of the National Defense Authorization Act of 1996 (Nunn-Lugar II)
Uranium Mill Tailings Radiation Land Withdrawl Act of 1978
Waste Isolation Pilot Plan (WIPP) Land Withdrawal Act
                                        1-110

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                          Environmental Protection Agency
                 FY 2005 Annual Plan and Congressional Justification

                        Clean Air and Global Climate Change

OBJECTIVE: Reduce Greenhouse Gas Intensity

      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. (An additional 75 MMTCE to result from the sustained growth in
the  climate programs  are reflected in the Administration's business-as-usual projection for
greenhouse gas intensity improvement.)

                                 Resource Summary
                                (Dollars in Thousands)

Reduce Greenhouse Gas Intensity
Environmental Program & Management
Science & Technology
Buildings & Facilities
Inspector General
Total Workyears
FY2003
Actuals
$99,836.4
$97,647.6
$750.0
$965.4
$473.5
251.3
FY2004
Pres. Bud.
$106,936.5
$105,343.7
$0.0
$969.6
$623.2
244.1
FY2005
Pres. Bud.
$108,389.3
$106,712.6
$0.0
$1,044.9
$631.8
244.6
FY 2005 Req. v.
FY 2004 Pres Bud
$1,452.9
$1,368.9
$0
$75.4
$8.6
0.5
                                  Program Project
                                (Dollars in Thousands)

Climate Protection Program
Congressionally Mandated Projects
Administrative Projects
TOTAL
FY2003
Actuals
$82,169.5
$1,018.2
$16,648.7
$99,836.4
FY 2004
Pres. Bud.
$91,289.6
• $0.0
$15,646.9
$106,936.5
FY2005
Pres. Bud.
$91,961.3
$0.0
$16,428.0
$108,389.3
FY 2005 Req. v.
FY 2004 Pres Bud
$671.7
$0.0
$781.2
$1,452.9
FY 2005 REQUEST

Results to be Achieved under this Objective

      In February 2002, the President announced a new approach to global climate change
designed to harness the  power of the markets and technological innovation.  The President
committed America to reduce the greenhouse gas intensity of the U.S. economy (how much we
emit per unit of economic activity) by 18 percent by 2012.   Meeting this commitment will
prevent more than 500 million metric tons of carbon-equivalent emissions through 2012.  This
approach focuses on reducing the  growth of GHG emissions, while sustaining the economic

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growth  needed to  finance investment  in  new, clean  energy technologies.   Focusing on
greenhouse gas intensity sets America on a path to slow the growth of greenhouse gas emissions,
and—as the science justifies—to stop and then to reverse that growth.

       Overall, EPA's climate  protection programs may prevent  as much as 185 MMTCE
annually by 2012, up from an estimated 65 MMTCE in 2002.  Of the additional 120 MMTCE
that will be prevented annually by 2012, 75 MMTCE will result  directly from the sustained
growth in many of the existing climate programs and are reflected in the  Administration's
business-as-usual projection for greenhouse gas intensity improvement; another 45 MMTCE will
contribute towards President's 18 percent greenhouse gas intensity improvement goal.

       EPA's voluntary climate programs work in partnership with businesses  and other sectors
through programs that deliver multiple benefit from cleaner air to lower energy bills—while
improving overall  scientific understanding of climate variability and change  and its potential
consequences.   In  FY 2005, EPA expects to  continue the significant accomplishments of its
Climate Protection  Programs and contribute to reducing the Nation's greenhouse gas intensity.

       EPA's  international activities  will lead  to increases  in the amount and quality of
information and technical  capacity available  for  decisions-makers  in  key developing and
industrialized countries to implement emissions reductions policies and programs. Ultimately,
these activities will lead  to the reduction of trans-boundary air pollution and greenhouse gas
emissions.

Climate Protection Program

       The core of EPA's climate change efforts are voluntary  government/industry partnership
programs  designed  to  capitalize  on the opportunities that consumers,  businesses,  and
organizations have for making sound investments in efficient equipment, policies and practices,
and transportation  choices.  In  ten  years,  we expect that  more  than  half the  Nation's
anthropogenic  greenhouse gas emissions will come from equipment purchased between now and
then.  Thousands of equipment purchases are made  every day,  and often people buy the
equipment  that is  the  least costly,  and  often least energy efficient, thereby committing
themselves to  higher energy bills in the future.  At the same  time, people often overlook the
investment  opportunities represented  by  more  energy  efficient equipment—investment
opportunities with  the potential of more than double the return on investment of other common
options (e.g., money markets, U.S. Treasury bonds).

       EPA manages a  number of efforts, such as its  ENERGY STAR programs, voluntary
transportation efficiency programs, and the EPA Clean Automotive Technology (CAT) program
(included under the Science Objective), to remove market barriers to deployment of energy
efficient technology in the residential,  commercial, transportation, and industrial sectors of the
economy. EPA programs do not provide financial subsidies. Instead, they work by overcoming
widely acknowledged market barriers to energy efficiency: lack of clear, reliable information on
technology opportunities; lack of awareness of energy efficient products and services; lack of
financing options to turn life cycle energy savings into initial cost savings for consumers; low
incentives to manufacturers for efficiency research and  development; and lack of awareness
about energy efficient transportation choices.


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       EPA's newest voluntary programs build on previous accomplishments.  In 2001, EPA
launched partnership programs to promote cleaner, more efficient energy supply  through
increased  renewable energy  and  combined  heat and  power  (CHP) applications.   These
"distributed energy"  technologies  continue to break the link between our Nation's increased
energy demand and ah" pollution.  CHP and renewable power also help meet the growing need
for decentralized, highly reliable power as our nation's electric grid ages.  In FY 2003, EPA
expanded the national Combined Heat and Power Partnership and the Green Power Partnership.
EPA also expanded its Climate Leaders program, an effort launched in FY 2002 to encourage
individual companies to develop  long-term,  comprehensive climate change  strategies and
emissions reduction goals. In 2003, Climate Leaders grew to 50 partners.

       In addition, EPA began forming partnerships  and initiated a number of transportation
efforts focusing both on the industry and on state and local sectors, including a program to
implement voluntary ground freight  management practices as well as technologies that can
substantially improve load scheduling and load matching logistics, reduce truck engine idling,
and improve truck fuel-efficiency.

       These partnerships can  be  extended globally to provide support for greenhouse gas
management activities in other countries of the world.  In 2005, EPA will continue activities that
recognize and  provide  support for environmental issues in other countries, such as global air
quality, energy access  and efficient, renewable energy, transportation alternatives, and solid
waste management (for methane reduction).

       EPA has had  substantial success across its Climate Protection Programs.  Through FY
2003, EPA's Climate Protection Programs (see Table 1) reduced emissions of carbon dioxide
(COa) and other greenhouse gases  such as methane and perfluorocarbons (PFCs).  In addition,
EPA's Climate  Protection  Programs have locked hi substantial energy  and  environmental
benefits over the next decade.  Since many of the investments promoted through EPA's climate
programs involve energy efficient equipment with lifetimes of decades or more, the investments
that have  been spurred through 2003  will continue  to  deliver environmental  and economic
benefits through 2012  and beyond.  EPA  currently  estimates that, based on  investments in
equipment already made due to EPA's programs through 2003, organizations and consumers
across the country may net savings of  more than $85 billion through 2012, and could reduce
greenhouse emissions by more  than 500 MMTCE through 2012 (cumulative reductions based
upon estimated 2003  achievements).92 These programs continue to be cost-effective approaches
for delivering environmental benefits across the country.

       In  FY  2003 alone,  EPA's  Climate  Protection Programs are expected to produce the
following results, to be reported for. the Government Performance and Results Act (final results
will be available in late calendar year 2004):

       •      reduce greenhouse gas  emissions by more than 80 MMTCE; and
       •      reduce energy consumption by an estimated 100 billion kilowatt hours.
92 Climate Protection Partnerships Division, U.S. Environmental Protection Agency. 2003. Change for the Better, ENERGY
STAR and Other Voluntary Programs, 2002 Annual Report.

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In FY 2003, EPA's Climate Protection Programs also are on track to:

       »      conserve enough energy to light 100 million homes for the year;
       •      prevent almost 200,000 tons of emissions of nitrogen oxide (NOX); and
       •     avoid  greenhouse  gas emissions equivalent  to  the emissions  of 45  million
             automobiles for the year.
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                                 Table 1: EPA's Climate Protection Programs
Sector
Buildings
Program
                    ENERGYSTAR
Activity/Initiative
                                                        Buildings
                                                       Labeled Products
                                                       Homes
Industry
 Carbon Reduction Programs (CO2)
                                                       ENERGY STAR for Industry
                                                       Combined Heat and Power Partnership
                                                        Green Power Partnership
                                                        Climate Leaders
                                                        Waste Wise
                     Methane Programs (CH4)
                                                       Natural Gas STAR Program
                                                       Landfill Methane Outreach Program
                                                        Coalbed Methane Outreach Program
                                                       Agricultural Programs (Ruminant Livestock Outreach andAgSTAR)
                                                       Landfill Rule
                     Programs to Reduce High Global Warming
                     Potential Gases (HFCs, PFCs, SF6)
                                    Voluntary Aluminum Industrial Program
                                                        PFC Reduction/Climate Partnership for the Semiconductor Industry
                                                        SF6 Emissions Reduction Partnership for the Electric Power System
                                                        SF6 Emissions Reduction Partnership for the Magnesium Industry
                                                        Partnership with HCFC-22 manufacturers to reduce HFC-23 emissions
                                                        Significant New Alternatives Policy (SNAP) Programs
                                                        Voluntary Partnerships with SNAP Industry Sectors
 Transportation *
 (NOTE: fuel cell
 vehicles and hydrogen
fuel technology as well
 as the clean automotive
 technology programs
 are included in the
 science objective).
 Transportation Efficiency and Emission
 Reduction Programs
  Best Workplaces for Commuters program - promoting a national standard of
  excellence for commuter benefits	
                                    SmartWay Transport Partnership — improve fuel efficiency and reduce
                                    emissions through voluntary adoption of technologies, including anti-idling
                                    and retrofit technologies
 Carbon Removal
 State and Local Climate Change Outi-each Program
 International Capacity Building
         EPA's climate change programs are on track to meet their greenhouse gas reduction goals
through FY 2003, as shown in Figure 1, and continue to meet the challenge of higher emissions
reduction goals.  The programs are on target to meet or exceed their specific goals for reducing
greenhouse gas emissions and energy consumption in 2003, as shown in Table 2 for key program
categories:
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Buildings (the ENERGY STAR program);
Industry programs working in partnership to reduce emissions of carbon dioxide
(including ENERGY STAR, WasteWise and Clean Energy programs);
Industry programs working in partnership to reduce emissions of methane;
Industry programs working in partnership to reduce emissions of the HFC/PFC
gases;
Transportation; and
State and local.
   Figure 1. Overall Goals and Achievements for
          the Climate Protection Programs

             •Annual Achievements  D Annual Goals
                        1-116

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                        Table 2. Goals and Accomplishments for Performance Measures: 1998 through 2005J


Program Area/Key
Gases



Buildings (ENERGY
STAR)4
Industry CO:
CH4
PFCs,
SF6.
HFCs
Transportation
State and Local
Total
1999
Accomplished


kWh
Saved
(billion)
61
Na
Na
Na

Na
Na
61
MMTCE
reduced

12.5
5.3
8.3
15

1.1
1.4
44
2000
Accomplished


kWh
Saved
(billion)
74
Na
Na '
Na

Na
Na
74
MMTCE
reduced

15.2
5.5
13.8
20.8

1.7
1.7
59
2001
Accomplished


kWh
Saved
(billion)
80
Na
Na
Na

Na
Na
80
MMTCE
reduced

16.6
5.8
16.0
22.86

1.9
1.9
65
2002
Accomplished


kWh
Saved
(billion)
100
na
na
na

na
na
100
MMTCE
reduced

21.5
6.7
16.8
24.S6

2.1
2.0
73.5
20032
Goal/Accomplished


kWh Saved
(billion)

95/105
Na
Na
Na

Na
Na
955/105
MMTCE
reduced

19.2s/23
6.75/6.7
17.05/18.0
24.95.6/29.2

2.45/2J
2.05/2.0
72.25/81
20043
Goal


kWh Saved
(billion)

110
Na
Na
Na

Na
Na
110s
MMTCE
reduced

21.4s
7.3s
18.1s
29.6"

2.6s
2.0s
81.0s
2005'
Goal


kWh
Saved
(billion)
120
na
na
na

na
na
120s
MMTCE
reduced

23.8s
8.0s
19.1s
34.4"

2.9s
2.0s
90.2s
'Metrics are not applicable to CAT, International Capacity Building or Global Change Research. The accomplishments of many of EPA's voluntary programs are documented in
        the Climate Protection Partnerships Division Annual Report. The most recent version, Change for the Better: Energy Star and Other Voluntary Programs, Climate
        Protection Partnerships Division 2002 Annual Report
2These results are estimates. Final results will be available in calendar 2004.
3The Third National Communication to the Secretariat of the Framework Convention on Climate Change (FCCC) reporting on national progress was submitted in FY 2002. The
        report provided updated information on U.S. climate protection programs including actual FY 2000 accomplishments and projected benefits in 2010. Goals for the
        climate protection programs were reviewed and refined as part of this interagericy process.
4EPA's' ENERGY STAR program spans the Building sector and the Industrial sector.
5GPRA performance measure.
"These goals and accomplishments do not include EPA's efforts on self-chilling cans, which resulted in the avoidance of potentially significant emissions of HCFCs into the
        atmosphere.
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Program Goals and Objectives for FY 2005

       EPA's programs have made strides date, but opportunities remain to achieve further
greenhouse gas emissions reductions and energy bill savings from energy efficiency programs
and greater cost-effective use of renewable energy.  American families and  businesses spend
over $600 billion each year on energy bills. Technologies are available today that can cut this
energy use significantly.

       Over  the next several years, EPA  will build upon  its voluntary  government/industry
partnership efforts to achieve even greater greenhouse gas reductions as part of the President's
plan to reduce greenhouse gas intensity by 18 percent in 2012. EPA will continue to break down
market barriers and foster energy efficiency programs, products and technologies, cost-effective
renewable energy, and greater transportation choices. EPA will continue to work closely with
state  and local  partners  to  assess the benefits  of reducing greenhouse  gas  emissions and
developing practical  risk reduction strategies.    The  Agency  will  develop  international
partnerships that will  link industrial efficiency, reduction of greenhouse gases, and sustainable
development.  In FY 2005, EPA's climate change programs will work to:

       •      reduce greenhouse gas emissions from projected levels;
       •      reduce U.S. energy consumption from projected levels;
       •      reduce  emissions  of ah- pollutants such as NOX, particulate matter, and mercury
              through activities that foster increased energy efficiency;
       •      continue to expand the ENERGY STAR program in the residential, commercial,
              and industrial sectors;
       •      develop voluntary partnerships with the freight  industry to substantially increase
              the market penetration of diesel engine retrofits, anti-idling technologies, speed
              management practices, improved aerodynamic truck designs and other practices
              under the  SmartWay Transport initiative that  cost-effectively improve  fuel
              efficiency;
       •      expand  energy  efficient   commute  options  like  carpools,   transit,  and
              telecommuting to reduce  vehicle miles of travel by more than two billion miles
              through the Best Workplaces for Commuters program;
       •      assist 10 key developing  countries and countries with economies-in-transition in
              building their capacity to reduce emissions of greenhouse gases through cost-
              effective measures and participate actively in international discussions  of climate
              protection and assist in the  fulfillment of the  U.S. obligations under the U.N.
              Framework Convention on Climate Change (UNFCCC) to facilitate technology
              transfer to developing countries;
       •      produce measurable  international greenhouse gas emission reductions  through
              clean industrialization partnerships with key developing countries;
       •      hi close cooperation with   USDA,  analyze,  identify,  and  develop  specific
              opportunities to sequester carbon hi agricultural  soils, forests, other vegetation
              and commercial  products, with benefits for agricultural productivity  and  the
              environment; and
       •      assess the  potential consequences  of climate variability  and change  on human
              health and ecosystems.
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       EPA will be working towards the following goals in each of the following program areas:

       •      Buildings (ENERGY STAR):93 The Buildings  Sector represents  one of EPA's
             largest areas of potential, and at the same time is one of its most successful. EPA
             will continue the successful ENERGY STAR94 partnerships in the residential and
             commercial buildings sector and prevent the emissions of 27 MMTCE in 2012 (hi
             addition to the 20 MMTCE being prevented annually as of 2002).  The efforts
             necessary in FY 2005 to achieve the 2012 goals are detailed in Table 3.

       •      Industry:95  EPA will continue to build on the success of the voluntary programs
             in the industrial sector, focusing on reducing CC«2  emissions and  continuing the
             highly successful initiatives to reduce  methane emissions and emissions of the
             high global-warming-potential gases. EPA's goals for these efforts are to: greatly
             enhance the rate of energy and resource efficiency improvements hi industry
             between now and 2012 through the ENERGY STAR and Waste Wise programs;
             cost-effectively keep emissions of methane at 1990  levels or below through 2010;
             cost-effectively limit emissions  of the more potent greenhouse gases (MFCs,
             PFCs, SFe);  and facilitate the use of renewable  energy.  EPA's industrial  sector
             programs will prevent 80 MMTCE hi 2012 (hi addition to the 43 MMTCE being
             prevented annually as of 2002). The efforts necessary in FY 2005 to continue to
             achieve these 2012 goals are detailed hi Table 4.

       •      Transportation: EPA will continue to build and enhance efficient and effective
             market-driven  programs that  address emissions of greenhouse gases from the
             transportation sector. The transportation sector of the economy contributes about
             one-third of all U.S. anthropogenic GHG emissions.  The  key elements of this
             effort are the  SmartWay Transport Partnership and the  Best Workplaces for
             Commuters program.

                    The  SmartWay Transport partnership works with the trucking and railroad
             industries to develop and deploy more fuel-efficient technologies and practices to
             achieve cleaner and more efficient vehicles and locomotives by adopting pollution
             control and energy saving technologies. At full implementation, this program has
             the  potential to reduce greenhouse gases by 9 to 18 MMTCE annually. As a
             component of this program, EPA will continue to develop partnership agreements
             with truck  fleets,  the  truck  stop industry,  manufacturers  of idle  control
             technologies,  and   local  and state  governments  to   create   incentives  for
             implementation of idle control technologies, and  remove barriers that truckers
             have identified, and deploy idling reduction strategies along major transportation
             corridors. Idling strategies alone have  the potential to save 1 billion gallons of
93 Through the ENERGY STAR program, EPA promotes energy efficiency across the residential, pommercial and industrial
sectors. EPA expects to prevent 29 MMTCE through the ENERGY STAR program in 2012, in addition to the 23 MMTCE
prevented in 2002.
 The ENERGY STAR program crosses two climate change program areas: Buildings and Industry. The total FY 2005 budget
request for the ENERGY STAR program is $50.3 million.
95 The Industrial Sector goals include the Agency's work with state and local governments, and state and local governments'
work with industry to prevent greenhouse gas emissions.

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       diesel fuel per year, while reducing greenhouse gases by 2.5 MMTE, and NOX by
       200,000 tons.

             The  goal of Best  Workplaces  for Commuters is to offer  innovative
       solutions  to commuting challenges  faced by U.S. employers  and employees by
       promoting outstanding commuter benefits that reduce vehicle trips and miles
       traveled. By offering commuter benefits such as transit passes, telecommuting,
       and vanpool vouchers, employers meet  the National Standard of Excellence for
       commuter benefits that improve air quality, traffic congestion, and energy security
       while reducing emissions of greenhouse gases. During FY 2004 and FY 2005,
       EPA will expand the Best Workplaces for Commuters program to the following
       metropolitan areas: New York, Washington DC, Atlanta, San  Antonio, Houston,
       Phoenix, Tucson, Denver, San Francisco, and Sacramento.  The Best Workplaces
       for Commuters program may cover approximately  2 million employees by the
       end of FY 2004, and 3.7 million employees in FY 2005.

             EPA  estimates that these  voluntary  programs have the potential to
       contribute over 13 MMTCE annually iri GHG reductions by 2012, in addition to
       the 2 MMTCE being prevented annually as of 2002. In addition, by  2012, EPA
       estimates these programs could reduce over 200,000 tons  of  NOX each year, as
       well as achieve significant  reductions in PM emissions. The efforts necessary in
       FY 2005 to achieve these goals are detailed in Table 5.

•      Carbon Removal:   Carbon can be sequestered through changes in both forestry
       and agricultural practices, but these actions are not currently well understood or
       accepted in many sectors of the international and environmental communities. In
       addition,  this  potential is not always well-reflected in technical  and economic
       analyses.  EPA  is  working  collaboratively  with  USDA  to  address   the
       misconceptions regarding carbon sequestration and to ensure  that this important
       mitigation option  is developed in an environmentally  sound and economically
       efficient way, and to facilitate the  improved modeling of carbon sequestration
       options. EPA is supporting USDA's programs under the Farm Bill and other
       vehicles to promote carbon sequestration and enhanced methane recovery, which
       could result in greenhouse gas reductions of up to  12  MMTCE by 2012.   The
       efforts necessary in FY 2005 to achieve these 2012 goals are detailed in Table 6.

•      State and Local: States and localities have a significant and an important role in
       voluntary efforts to reduce our country's GHG intensity, but need information,
       analyses and tools they need to integrate energy, air quality, and GHG reduction
       objectives and promote consistent, voluntary strategies.

             The  state and local program responds to this need by providing tools,
       analyses and information about the  benefits of voluntarily reducing emissions of
       GHGs.  EPA will continue  its efforts to build  capacity and to provide state and
       local governments with technical,  outreach,  and/or  education  services about
       integrated approaches, so that state  and  local governments may more effectively
       address   their  environmental,  human  health,  and  economic  goals  in a
       comprehensive manner. These efforts are detailed in Table 6.
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International Capacity  Building:  EPA  is  working  with a  number of key
developing countries to help them:  1) design and implement programs to increase
the use of low and zero greenhouse gas technologies; 2) identify, evaluate, and
implement strategies  for  achieving  multiple  social  and health or economic
benefits while reducing greenhouse gas emissions; 3) facilitate more significant
actions to reduce GHG emissions  by these countries under the United Nations
Framework  Convention on Climate  Change (UNFCCC) and help develop the
infrastructure necessary to implement these actions;  and, 4) accurately  assess
GHG emissions from the transportation  sector in these countries and help to
implement less energy-intensive transportation strategies.   Over the next ten
years,  EPA's goals are to: 1) catalyze  increases in voluntary, market-driven
programs for increasing the use of low and zero greenhouse gas technologies; 2)
encourage full  consideration  of climate  variability and change  into countries'
future development plans; and 3) establish the technical and institutional basis for
key developing countries to take significant actions to  reduce GHG emissions
consistent with UNFCCC. The efforts necessary in FY 2004 to meet these goals
are detailed in Table 6.
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        Table 3. EPA's ENERGY STAR Buildings Program: Description of Planned Activities
                                      Within FY 2005 Budget Request
ENERGY
  STAR
Buildings
Actively promote EPA's national energy performance rating system and work with building owners and managers to
 benchmark an average of 19 percent of the market across office buildings, schools, Federal and state facilities, retail
 spaces, hospitals, hotels, dormitories, and,restaurants.
Award 2,800 Energy Star labels to buildings that reach a benchmark score between 75 and 100.
Continue to work closely with the energy services industry to assist these companies in integrating EPA's national
 energy performance rating system into their customer services, leading to 5,000 benchmarked buildings.
Have 10,000 small businesses and congregations look to ENERGY STAR to save energy and reduce operating costs.
Continue to promote the financial value of ENERGY STAR and energy efficiency with the Wall Street and financial
 community.
Actively work to improve the efficiency of the Federal government - by working with other agencies to implement key
 pieces of the Federal Executive Order on building energy efficiency, particularly focusing on assisting agencies to
 benchmark their buildings and to procure energy efficient products.
Develop benchmark capabilities for two additional space types.
ENERGY
  STAR
 Products
Implement three seasonal, nationally coordinated, consumer outreach campaigns raising awareness of the
 environmental benefits associated with using energy efficient air conditioning, lighting, and home electronics.
Coordinate with utility and state partners representing more than 65% of U.S. households in the design and operation of
 effective state-level energy efficiency programs.
Enhance Energy Star labeled product quality through a review of performance specifications for 5 product categories.
Continue working with retailers and equipment contractors to ensure that consumers receive clear information when in
 the market to purchase products.
Continue working in partnership with Canada, the European Community, Japan, Taiwan, Australia, and New Zealand
 in implementing energy efficiency labeling programs modeled after Energy Star.
Promote the purchase of about 175 million Energy Star labeled products in 2005.
ENERGY
  STAR
 Homes
Over 150,000 new homes are expected to be constructed as Energy Star in 2005.
Promote Energy Star Labeled New Homes in 25 geographic areas.
Expand Energy Star to include 85% of the housing stock of the national builders, Pulte, Ryan and Centex.
Achieve 75% penetration of Energy Star in the manufactured housing industry.
Continue to promote Energy Star to HUD, and state and local housing authorities as the platform for their affordable
 housing programs.
Work with major retailers, such as Home Depot, Lowes, and Sears, to promote ENERGY STAR Home Sealing to
 consumers.
Promote proper installation, maintenance, and duct sealing of HVAC systems under the ENERGY STAR banner in 15
 geographic regions.
Extend Energy Star to the remodeler market.
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ENERGYSTAR
  for industry
      Table 4.  Industry Programs:  Description of Planned Activities
                        Within FY 2005 Budget Request
Expand the Energy Star program to promote energy efficiency to nine industries.
Enhance technical assistance provided to the industrial sector by developing plant energy performance indicators
 for three additional industries.
Maintain the energy peer exchange networking opportunities for the broader U.S. industry by conducting two
 national meetings, along with a series of centralized peer exchanges accessible to all.
 Combined Heat
   and Power
   Initiative
Expand efforts in the Northeast, Midwest, and Texas, working with state, local, and industry partners to facilitate
 40 new CHP projects.
Begin working in the Southeast and in the Northwest with emerging regional outreach programs.
Maintain and publish a database of existing and planned projects in the U.S., to promote the greenhouse gas
 reductions associated with these projects.
Continue to work with targeted state and local regulators to identify best practices for air regulations that
 encourage energy-efficient generation.
  Green Power
   Partnership
Refine Green Power Partnership recruiting efforts to focus on large corporate and institutional electricity
 purchasers, and recruit 100 new Partners from this category.
Continue developing a national market consensus on a benchmark for voluntary green power purchasing.
Work with targeted states to leverage their renewable energy programs through policies such as emissions
 disclosure.
Target green power providers for expanded collaboration in marketing, recognition events, and recruiting.
Climate Leaders
Maintain and update Climate Leaders greenhouse gas inventory protocol to incorporate lessons learned and
 Partner comments.
Expand Climate Leaders program to 100 partners.
Harmonize Climate Leaders inventory protocol with similar efforts at the national, state, and international level to
 reduce reporting burdens on Partners that participate in multiple programs.
Announce 20 new voluntary corporate greenhouse gas reduction goals.
  Waste Wise
Focus WasteWise efforts on new industry sector work, and on streamlined and improved data tracking on waste
 reduction.
Expand efforts on coal ash cement via Coal Combustion Products Partnership (C2P2). Double the number of
 C2P2 participants expected to join from 50 to 100, and obtain buy in for two new industry-wide goals: 1)
 increasing the amount of coal ash used as a replacement for concrete from 14 million tons in 1992 to 20 million
 tons by 2010 (reducing future GHG emissions by approximately 5.4 million tons), and 2) increasing the overall
 use of C2P2s from 31% in 2002 to 45% in 2008.
Continue to pursue a Product Stewardship approach for electronics recycling with tangible industry commitments
 and state support, leading to measurable increases in electronics recycling and associated climate benefits.
Begin to measure benefits of new national carpet product stewardship agreement with pursuing additional Product
 Stewardship agreements in autos and beverage containers.
Continue Green Building efforts aimed at increasing recovery of construction and landscaping materials and use
 of recovered materials in construction and landscaping. Continue to build partnerships and pilot innovative
 approaches with sectors that can influence the marketplace, including the military (on base deconstruction),
 WasteWise partners, and other large landowners. Work with key stakeholders to increase building deconstruction
 infrastructure and expertise.
Provide research, outreach materials and technical assistance on the use of GHG emission factors for waste
 reduction to encourage their adoption nationwide.
    Methane
    Programs
Continue Natural Gas STAR program in all sectors; increase industry-wide participation to 65%.
Work with key stakeholders through EPA's Coalbed Methane Outreach Program (CMOP) to increase the market
 penetration of new greenhouse gas reduction technologies appropriate for combusting mine ventilation air. EPA
 will continue to provide technical assistance to mining operations as well as monitor and analyze the results from
 two demonstration projects and encourage demonstration of 3-4 new technical options.
Assist an additional 50 landfills through the Landfill Methane Outreach Program (LMOP) in implement landfill
 gas-to-energy projects, and expand outreach and technical support for industrial and energy sector use of landfill
 gas energy.
In the agriculture sector, continue expansion of methane-reducing technologies, such as anaerobic digesters, to
 help ensure clean water and air for the livestock sector.
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                     Table 4, Industry Programs: Description of Planned Activities
                                      Within FY 2005 Budget Request
                                                  (continued)
  Programs to
  Reduce High
Global Wanning
 Potential Gases
The Voluntary Aluminum Industry Partnership (VAIP) will continue to deliver reductions, with VAIP participants
 reducing the industry's emissions of PFCs by at least 70% percent from the 1990 baseline year, and begin
 implementing energy efficiency improvements.
Work with the U.S. semiconductor partners to achieve their 10% PFC emissions reduction goal by 2010 from
 their 1995 baseline.
Continue work with industry to increase participation in the SF6 Emissions Reduction Partnership for Electric
 Power Systems to over 50% of the industry's net generating capacity and to achieve a sector-wide SF6 emission
 reduction goal.
Support the US magnesium partners' research and alternative cover gas trials to expedite the phase-out of SFg,
 which is due to be completed in 2010.
Maintain 100% participation with U.S. HCFC-22 chemical manufacturers to reduce emissions of HFC-23.
Expand the stewardship programs to reduce high global warming potential emissions from other key sources such
 as the military and ODS replacement industries.
SNAP expects to review and list 10 alternatives to ozone-depleting substances, focusing on the identification of
 safe and energy-efficient substitutes, including HFCs in various sectors.
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                 TableS.  Transportation Programs: Description of Planned Activities
                                      Within FY 2005 Budget Request
Transportation
  Efficiency
The Best Workplaces for Commuters program reduces emissions of smog-forming and toxic air pollutants and
 greenhouse gases by reducing the number of vehicle trips and vehicle miles traveled. EPA partners with
 employers who agree to adopt employee commuter benefit programs that meet a National Standard of Excellence
 for commuter benefits. In FY 2005 EPA will promote Best Workplaces for Commuters in at least 10 major
 metropolitan areas; expanding Best Workplaces for Commuters to include more than 4,000 employer partners;
 actively promoting commuter benefits to industries representing finance, insurance, real estate, government, retail,
 telecommunications, entertainment, health care, and universities; and expanding Best Workplaces for Commuters
 to encompass 3.7 million employees (2.7% penetration of U.S. commuters).

The SmartWav Outreach Program promotes voluntary transportation programs, including a transportation
 information disclosure program, that educate the public or benefit the environment both globally by reducing CO2
 emissions and locally by reducing NOx and other smog forming emissions. The SmartWay Outreach Program
 will achieve these emission reductions by implementing voluntary programs, including the SmartWay Transport
 Program and the Vehicle Information Program, and will explore other potential applications of the SmartWay
 concept.

In FY 2005 the SmartWav Transport Partnership will reduce greenhouse gases, as well as NOx and PM emissions,
by:
    •    Partnering with up to 200 trucking companies hi the U.S. and 3 of the 7 largest railroad companies.
         Partners will agree to reduce fuel consumption and emissions through the implementation of negotiated
         technologies and practices.
    •    Partnering with up to 100 manufacturing, retail, and supply companies that hire or contract trucking
         and/or rail fleets. These companies will agree to hire rail and truck companies that are members of the
         SmartWay Transport Partnership.
    •    Showcasing the emission control effectiveness, fuel efficiency, and commercial viability of innovative
         diesel emission control technologies.
    •    Creating a rigorous technology evaluation program, to encourage the more rapid deployment of cleaner,
         more efficient technologies and practices.
    •    Continuing the Agency's National Idle-Free Corridors project to develop a contiguous network of
         electrified truck stop parking spaces across the most heavily-traveled interstate freight corridors.

Continue to provide technical assistance to state and local governments and to  developing countries to develop and
 pilot innovative climate change mitigation options for the transportation sector.	
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                         Table 6, Other Programs: Description of Planned Activities
                                         Within FY 2005 Budget Request
     Carbon
    Removal
Continue to collaborate with USDA on the project development issues and determine the viability of various
 carbon sequestration activities as quantifiable means of limiting greenhouse gas emissions.
Continue work on enhancing the ability of major macroeconomic models to evaluate the economic value of carbon
 sequestration and fully appreciate the role of carbon sequestration in reducing greenhouse gas emissions.
Bring together leading experts from government, industry, and the research community to address several difficult
 issues related to sequestration projects, including permanence, leakage, monitoring, and verification.
Enhance efforts to better quantify the ancillary impacts of carbon sequestration.
Work with stakeholders in the forestry and agriculture sectors to promote the development of environmentally
 sustainable and economically attractive carbon sequestration projects domestically and internationally.
Work with DOE and other stakeholders to understand emission reduction accounting and environmental impacts
 from carbon storage in geological formations.
      State
       and
      Local
Provide targeted support, via analytical tools, guidance, and tailored technical support, to states requesting
   assistance with initiating and updating voluntary greenhouse gas inventories, developing and implementing
   voluntary GHG reduction strategies, and integrating GHG reductions into their overall planning.
Support best practices by providing:  training on new tools and models that build understanding of the broader
   human health and clean air benefits of reducing criteria pollutants; opportunities for training; and information on
   the environmental outcomes of voluntary programs.
Conduct analyses, develop analytical tools, and provide technical assistance to EPA regions, states, and local air
   programs on integrating energy efficiency and renewable energy into SIPs through innovative measures.
Develop tools to facilitate voluntary adoption of heat island reduction activities and integrate them into SIPs.
Improve and enhance outreach products, including the EPA Global Warming and Heat Island websites, a
   guidebook on heat island mitigation strategies, and maintenance of a best practices clearinghouse to promote
   emission reduction strategies.
Translate key scientific findings into a format more readily understandable to the public.
Develop risk characterization methods to inform public response to climate change, and continue work on the
 strategic coastal response program.
   International
    Capacity
    Building
Continue and expand cooperation with China, Mexico, Brazil, and India.
Build the capacity in key developing countries (e.g., India and Russia) to develop reliable GHG emission
   inventories.
Establish regional energy and GHG information networks in three major regions of the world.
Improve energy efficiency practices in buildings in Russia and Kazakhstan.
Continue to assist key developing countries in their efforts to identify and quantify mitigation measures that reduce
   local air pollutants and GHG emissions and that result in multiple environmental, health, social, and economic
   benefits.
Establish partnerships with key developing countries to share and transfer energy efficiency program models and
   efficient energy technologies developed in the U.S.
FY 2005 CHANGE FROM FY 2004
EPM
         There  are  additional increases for payroll, cost of living, and enrichment for existing
         FTE.
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ANNUAL PERFORMANCE GOALS AND MEASURES

Reduce Greenhouse Gas Emissions

In 2005     Greenhouse gas emissions will be reduced from projected levels by approximately 90 MMTCE per
            year through EPA partnerships with businesses, schools, state  and local governments, and other
            organizations.

In 2004     Greenhouse gas emissions will be reduced from projected levels by approximately 81 MMTCE per
            year through EPA partnerships with businesses, schools, state  and local governments, and other
            organizations.

In 2003     End of year FY 2003 data will be available in mid-2004 to verify that Greenhouse gas emissions will
            be reduced from projected levels by approximately 72.2 MMTCE per year through EPA partnerships
            with businesses, schools, state and local governments, and other organizations.
Performance Measures:

Annual Greenhouse Gas Reductions - All
EPA Programs

Greenhouse Gas Reductions from EPA's
Buildings  Sector  Programs  (ENERGY
STAR)

Greenhouse Gas Reductions from EPA's
Industrial  Efficiency/Waste Management
Programs

Greenhouse Gas Reductions from EPA's
Industrial Methane Outreach Programs

Greenhouse Gas Reductions from EPA's
Industrial HFC/PFC Programs

Greenhouse Gas Reductions from EPA's
Transportation Programs

Greenhouse Gas Reductions from EPA's
State and Local Programs
FY2003
Actuals


Data Lag
Data Lag



Data Lag


Data Lag


Data Lag


Data Lag


Data Lag
 FY2004
Pres. Bud.


   81.0
   21.4
   7.3
   18.1
   29.6
   2.6
                                                            2.0
 FY2005
Pres. Bud.


   90.2
   23.8
   19.1
   34.4
   2.9
                   2.0
MMTCE
MMTCE
                 MMTCE
MMTCE
MMTCE
MMTCE
                 MMTCE
Baseline:   The baseline for evaluating program performance is a projection of U.S. greenhouse gas emissions in
           the absence of the U.S. climate change programs. The baseline was developed as part of an interagency
           evaluation of the U.S. climate change programs in 2002, which built on similar baseline forecasts
           developed hi 1997 and 1993. Baseline data for carbon emissions related to energy use is based on data
           from the Energy Information Agency (EIA) and from EPA's Integrated Planning Model of the U.S.
           electric power sector. Baseline data for non-carbon dioxide (CO2) emissions, including nitrous oxide
           and other high global warming potential gases are maintained by  EPA. Baseline information is
           discussed    at     length     in     the     U.S.    Climate     Action    Report     2002
           (www.epa.gov/globalwarming/publications/car/index.html), which provides a discussion of differences
           in assumptions  between the 1997 baseline and the 2002 update, including which portion of energy
           efficiency programs are included hi the estimates. EPA develops the non-CO2 emissions baselines and
           projections using information from  partners  and other sources.  EPA continues to develop annual
           inventories as well as update methodologies as new information becomes available.
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Reduce Energy Consumption

In 2005    Reduce energy consumption from projected levels by more than  120  billion kilowatt hours,
          contributing to over $8.5 billion in energy savings to consumers and businesses.

In 2004    Reduce energy consumption from projected levels by more than  110  billion kilowatt hours,
          contributing to over $7.5 billion in energy savings to consumers and businesses.

In 2003    End of year FY 2003 data will be available in late 2004 to verify the reduction in energy consumption
          from projected levels by more than 95 billion kilowatt hours, contributing to  over $6.5 billion in
          energy savings to consumers and businesses.

Performance Measures:                  FY2003       FY2004       FY2005
                                     Actuals      Pres. Bud.     Pres. Bud.
Annual Energy  Savings -  All EPA
Pr0gramS                              Data Lag         110           120            kWn"

Baseline:      The baseline for evaluating program performance is a projection of U.S.
greenhouse gas emissions in the absence of the U.S. climate change programs. The baseline was
developed as part of an interagency evaluation of the U.S. climate change programs in 2002,
which built on similar baseline forecasts developed in 1997 and 1993. Baseline data for carbon
emissions related to energy use is based on data from the Energy Information Agency (EIA) and
from EPA's Integrated Planning Model of the U.S. electric power sector. Baseline data for non-
carbon dioxide (CO2) emissions, including nitrous oxide and other high global warming
potential gases are maintained by EPA. Baseline information is discussed at length in the U.S.
Climate Action Report 2002 (www.epa.gov/globalwarming/publications/car/index.html), which
provides a discussion of differences in assumptions between the 1997 baseline and the 2002
update, including which portion of energy efficiency programs are included in the estimates.
EPA develops the non-CO2 emissions baselines and projections using information from partners
and other sources.  EPA continues to develop annual inventories as well as update methodologies
as new information becomes available.
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure; Annual Greenhouse Gas Emissions Reductions overall and
by Sector

Performance Database:  Climate Protection Partnerships Division Tracking System.

Data Source:  Baseline data for carbon emissions related to energy use comes from the Energy
Information Agency (EIA) and from EPA's Integrated Planning Model of the U.S. electric power
sector. Baseline data for non-carbon dioxide (COa) emissions, including nitrous oxide and other
high global warming potential gases, are maintained by EPA.  Baseline information is discussed
at length in the U.S.  Climate Action Report 2002.   EPA develops the carbon  and non-CO2
emissions baselines and projections using information from partners and other sources.   Data
collected  by  EPA's  voluntary programs  include partner reports on  facility-  specific
improvements (e.g. space upgraded, kilowatt-hours (kWh) reduced), national market data on
shipments of efficient products, and engineering measurements of equipment power levels and
usage patterns.

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Methods, Assumptions, and Suitability:  Most of the voluntary climate programs' focus is on
energy efficiency.  For these programs, EPA  estimates  the expected reduction in electricity
consumption hi kilowatt-hours (kWh). Emissions prevented are calculated as the product of the
kWh  of electricity saved and an  annual  emission  factor (e.g.,  million metric tons carbon
equivalent  (MMTCE)  prevented per kWh).  Other programs focus on  directly lowering
greenhouse gas emissions (e.g., Natural Gas STAR,  Landfill Methane Outreach, and Coalbed
Methane Outreach); for these, greenhouse gas emission reductions are estimated on a project-by-
project basis.  EPA maintains a "tracking system" for emissions reductions.

QA/QC  Procedures:    EPA  devotes considerable effort to obtaining the  best  possible
information on which to evaluate emissions reductions from voluntary programs. Peer-reviewed
carbon-conversion factors are used to ensure consistency with generally accepted measures of
Greenhouse Gas (GHG) emissions, and peer-reviewed methodologies are used to calculate GHG
reductions from these programs.

Data Quality Review:  The Administration evaluates its climate programs using an interagency
approach. The second  such interagency evaluation  included participants from EPA and the
Departments  of  State,  Energy, Commerce,  Transportation, and  Agriculture.   The  previous
evaluation was published in the U.S. Climate Action Report-1997. A 1997 audit by EPA's Office
of the Inspector General concluded that the climate programs examined "used good management
practices" and "effectively estimated the impact their activities had on reducing risks to health
and the environment..."

Data  Limitations: These are indirect measures of GHG emissions (carbon conversion factors
and methods to convert material-specific reductions to GHG emissions reductions).  Also, the
voluntary nature of the programs may affect reporting.  Further research will be necessary in
order  to fully understand the links between GHG concentrations and specific environmental
impacts, such as impacts on health, ecosystems, crops, weather events, and so forth.

Error Estimate:  These are  indirect measures of GHG emissions.  Although EPA devotes
considerable effort to obtaining the best possible information on which to evaluate emissions
reductions from voluntary programs, errors  hi the performance data could be introduced through
uncertainties hi carbon conversion factors, engineering analyses, and econometric analyses.

New/Improved Data or Systems:  The Administration regularly evaluates the effectiveness of
its climate programs through interagency evaluations.  EPA continues to update inventories and
methodologies as new information becomes available.

References:      The   U.S.    Climate    Action   Report   2002   is    available   at:
w\^rw.epa.gov/globalwarmmg/publications/car/index..html.   The accomplishments of many of
EPA's voluntary programs are documented in the  Climate Protection Partnerships  Division
Annual Report.  The  most recent version  is Change for the Better:  Energy Star  and Other
Voluntary Programs,  Climate Protection Partnerships Division 2002 Annual Report.
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FY 2005 Performance Measure; Annual Energy Savings

Performance Database: Climate Protection Partnerships Division Tracking System

Data Source:  Data collected by EPA's voluntary programs include partner reports on facility
specific improvements (e.g. space upgraded, kilowatt-hours (kWh) reduced), national market
data on shipments of efficient products, and engineering measurements of equipment power
levels and usage patterns.

Methods, Assumptions, and Suitability:  Most of the voluntary climate programs' focus is on
energy efficiency. For these programs, EPA estimates the expected reduction in electricity
consumption in kilowatt-hours (kWh).  Emissions prevented are calculated as the product of the
kWh of electricity saved and an annual emission factor (e.g., MMTCE prevented per kWh).
Other programs focus on directly lowering greenhouse gas emissions (e.g., Natural Gas STAR,
Landfill Methane Outreach, and Coalbed Methane Outreach); for these, greenhouse gas emission
reductions are estimated on a project-by-project basis.  EPA maintains a tracking  system for
energy reductions.

Energy bill savings are calculated as the product  of the kWh of energy saved and the cost of
electricity for the affected market segment (residential, commercial, or industrial) taken from the
Energy Information Administration's (EIA) Annual Energy Outlook 2002 and Annual Energy
Review 2000 for each year in the analysis (1993-2012). Energy bill savings also include revenue
from the sale of methane and/or the sale of electricity made from captured methane.  The net
present value (NPV) of these savings was calculated using a 4-percent discount rate and a 2001
perspective.

QA/QC  Procedures:   EPA  devotes considerable  effort to  obtaining the  best  possible
information on which to evaluate energy savings from its voluntary programs.

Data Quality Review: The Administration regularly evaluates the effectiveness of its climate
programs through interagency evaluations.  The second such interagency evaluation included
participants from  EPA and the Departments of State, Energy,  Commerce, Transportation, and
Agriculture.  The  results were published in the  U.S. Climate Action Report-2002 as part of the
United States' submission to the Framework Convention on Climate Change (FCCC). The
previous evaluation was published in the U.S.  Climate Action Report-1997. A 1997 audit by
EPA's Office of  the Inspector General concluded that the climate programs examined "used
good management practices" and  "effectively estimated the  impact their activities  had on
reducing risks to health and the environment."

Data Limitations: The voluntary nature of programs may affect reporting. In addition, errors in
the performance data could  be introduced through uncertainties hi engineering analyses and
econometric analyses.

Error Estimate:   Although EPA  devotes considerable  effort  to obtaining  the best possible
information on which to evaluate emissions reductions from voluntary programs, errors in the
performance  data could  be introduced through uncertainties  in  engineering analyses and
econometric analyses.


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New/Improved Data or Systems: The Administration regularly evaluates the effectiveness of
its climate programs through interagency evaluations. EPA continues to update inventories and
methodologies as new information becomes available.

References: The U.S. Climate Action Report 2002 is available at:
\vwu',epa.gov/globalwamiittg/pubiications/car/index.htDil. The accomplishments of many of
EPA  voluntary programs are documented in the Climate Protection Partnerships Division
Annual Report.  The most recent version is Change for the Better: Energy Star and Other
Voluntary Programs, Climate Protection Partnerships Division 2002 Annual Report.
COORDINATION WITH OTHER AGENCIES

       Voluntary climate protection programs government-wide stimulate the development and
use of renewable  energy  technologies and energy efficient products that will help reduce
greenhouse gas emissions.  The effort is led by EPA and DOE with significant involvement from
USD A, the Department of Housing and Urban Development (HUD) and the National Institute of
Standards and Technology.

       Agencies throughout the government  make  significant contributions to  the climate
protection programs.   For  example, DOE will pursue actions such as promoting the research,
development, and  deployment  of advanced  technologies  (for  example, renewable energy
sources).   The Treasury  Department will  administer proposed  tax incentives for specific
investments that will reduce emissions. EPA is working with DOE to demonstrate technologies
that oxidize ventilation air  methane from coal mines.  EPA is broadening its public information
transportation choices  campaign as a joint effort with DOT.   EPA coordinates with each of the
above-mentioned agencies to ensure  that our programs  are complementary and in no way
duplicative.

       This coordination is evident in work recently completed by an interagency task force,
including representatives from  the Department  of State, EPA,  DOE,  USDA, DOT,  OMB,
Department of Commerce,  USGCRP, NOAA, NASA, and the Department of Defense, to prepare
the Third National  Communication to the Secretariat as required under the FCCC.  The FCCC
was  ratified  by the  United States  Senate  hi  1992.   A portion  of the Third National
Communication describes  policies and measures (such as ENERGY STAR and EPA's Clean
Automotive Technology initiative) undertaken  by the  U.S. to reduce greenhouse gas  emissions,
implementation status  of the policies and measures, and their actual and projected benefits. One
result of this interagency review process has been a refinement of future goals for these policies
and measures which were  communicated to the Secretariat  of the FCCC in 2002.   The "U.S.
Climate Action Report 2002:  Third National Communication of the United States of America
under  the  United  Nations  Framework Convention  on Climate Change"  is  available  at:
http://unfccc.rnt/resource/docs/natc/usnc3 .pdf.

       EPA works primarily with the  Department  of State, the Agency for International
Development,  and the  Department of  Energy as well as with regional  organizations  in
implementing climate-related programs and projects.   In addition, EPA partners with others
worldwide, including  international organizations  such  as  the  United  Nations Environment

                                        1-131

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Programme, the United Nations Development Programme, the International Energy Agency, the
OECD, the World Bank, the Asian Development Bank, and our colleagues hi Canada, Mexico,
Europe and Japan.
STATUTORY AUTHORITIES

Clean Ah- Act Amendments, 42 U.S.C. 7401 et seq. - Sections 102, 103, 104, and 108
Clean Water Act, 33 U.S.C. 1251 et seq. - Section 104
Federal Technology Transfer Act, 15 U. S.C. - Section 3701 a
Global Climate Protection Act, 15 U.S.C. 2901 - Section 1103
National Environmental Policy Act, 42 U.S.C. 4321  et seq. - Section 102
Pollution Prevention Act, 42 U.S.C. 13101 et seq. - Sections 6602, 6603, 6604, and 6605
Solid Waste Disposal Act, 42 U.S.C. 6901 et seq. - Section 8001
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                        Clean Air and Global Climate Change

OBJECTIVE; Enhance Science and Research

      Through 2010, provide and apply sound science to support EPA's goal of clean air by
conducting leading-edge research and developing a better understanding and characterization of
environmental outcomes under Goal 1.

                                Resource Summary
                               (Dollars in Thousands)

Enhance Science and Research
Environmental Program & Management
Science & Technology
Buildings and Facilities
Inspector General
Total Workyears
FY2003
Actuals
$132377.0
$16,904.8
$113,313.3
$1715.0
$643.9
385.2
FY 2004
Pres. Bud.
$128,016.6
$18,216.5
$107,353.4
$1,710.5
$736.2
371.2
FY 2005
Pres. Bud.
$130,863.6
$18,723.8
$109,544.0
$1,840.5
$755.3
372.4
FY2005Req.v.
FY 2004 Pres Bud
$2,847.1
$507.4
$2,190.6
$130.0
$19.1
1.1
                                 Program Project
                               (Dollars hi Thousands)

Climate Protection Program
Radiation: Protection
Research: Air Toxics
Research: Particulate Matter
Research: Troposphere Ozone
Clean Air Allowance Trading Programs
Congressionally Mandated Projects
Federal Support for Air Quality Management
Federal Support for Air Toxics Program
Administrative Projects
TOTAL
FY 2003
Actuals
$19,588.0
$1,367.0
$14,257.2
$64,437.9
$4,804.2
$4,042.7
$3,810.2
$408.0
$402.0
$19,459.8
$132,577.0
FY2004
Pres. Bud.
$17,320.3
$1,472.1
$15,700.9
$63,620.6
$4,942.3
$3,991.2
$0.0
$380.7
$403.1
$20,185.4
$128,016.6
FY2005
Pres. Bud.
$17,458.9
$1,361.5
$17,638.9
$63,690.8
$4,900.9
$3,991.2
$0.0
$482.4
$405.4
$20,933.6
$130,863.6
FY 2005 Req. v.
FY 2004 Pres Bud
$138.6
($110.6)
$1,938.0
$70.2
($41.4)
$0.0
$0.0
$101.7
$2.3
$748.3
$2,847.1
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FY 2005 REQUEST

Results to be Achieved Under this Objective

       EPA undertakes and relies upon sound science in its clean air programs.  The Agency
uses science to determine the risks that air pollution poses to human health and the environment,
and to identify the best means to detect, abate, and avoid environmental problems associated
with ah" pollutants.  To support the achievement of its clean air objectives and the overall goal of
clean air for American communities and surrounding ecosystems, EPA will ensure that efforts to
reduce environmental and  human health risks are based on the best  available scientific
information.   In  addition,  EPA will  continue  to integrate critical scientific assessment with
policy, regulatory, and non-regulatory activities.

       The tropospheric ozone research program develops tools and generates methods and data
to support states, tribes, and the Agency as they identify and implement effective strategies to
attain the National Ambient Air Quality Standards (NAAQS).  Research results will be used to
help determine which areas of the country attain the NAAQS for tropospheric ozone.  Air quality
simulation models  and associated inputs (atmospheric  chemistry  and  emissions  models)
produced from this research are used to support scientific analyses that serve as the basis for
identifying the most cost-effective mix of controls that could be deployed in a particular area to
meet the NAAQS.

       Particulate matter (PM) exposure and health effects research will fill current gaps hi our
understanding of the observed excess mortality and disease associated with PM and will continue
work to  strengthen  the scientific basis for the next review of the  PM NAAQS  in  2010 by
conducting epidemiological, toxicological,  clinical, and exposure studies of PM  health effects.
This will include research describing the health effects of different PM sizes, and specific effects
(such as  respiratory and cardiopulmonary) of ambient PM on select susceptible populations.  In
addition, human exposure research  will provide information on  relationships between ambient
levels of PM and actual human exposure that lead to adverse health impacts.  Results from the
research will  also help elucidate the  health implications of PM emitted from specific source
categories.

       After the designation of non-attainment areas  for the current PM NAAQS hi 2005, states
will have three  years  hi  which to  develop State Implementation  Plans (SIPs)  that,  once
implemented,  lead to cleaner air  and PM NAAQS attainment.  The PM research program will
provide the latest data on the  chemical and physical characteristics of source emissions  and
improve models to identify source  contributions to  locally observed PM concentrations.  The
program will  evaluate risk management options and provide the ah* quality models to predict
how various emission reduction strategies will impact future PM concentrations. These data and
information, which are essential for SIP development, will help states identify sources of concern
in thek  area and develop  effective SIPs that bring the states into compliance as quickly as
possible.

       Air Toxics research contributes to the advancement of science in the areas of emissions,
air quality modeling, human exposure, and health effects, to  improve EPA's ability to assess
public health risks associated with hazardous air pollutants (HAPs).  The program scope includes
risk assessment techniques and risk reduction options for mobile, indoor, and stationary sources

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of air toxics including those where residual risks remain after existing technologies have been
installed.  These efforts support development and implementation of national risk reduction
programs and community-level assessments.

Federal Support for Air Quality Management & Air Toxics Program/Radiation: Protection

       EPA will continue  to conduct  risk assessments  on both criteria and hazardous  air
pollutants.  These risk assessments will be used in support of our air toxics program and hi
estimating the risks associated with exposure to criteria pollutants, such as fine particles. EPA
also conducts radiation risk  assessments and provides the technical tools and the scientific basis
for generating radionuclide-specific risk coefficients.   Risk managers use this information to
assess health risks from radiation exposure and to determine appropriate levels for contaminated
site clean-up. This information is also utilized by EPA to develop radiation protection and risk
management policy, guidance, and rulemakings.

Clean Air Allowance Trading Systems

       The Clean  Air Status  and Trends  Network  (CASTNET) is a national  long-term
atmospheric deposition monitoring network.   Established  in 1987, it is the Nation's primary
source for  atmospheric data on the dry deposition component of total acid deposition, rural
ground-level  ozone  and other forms of atmospheric pollution that  enter the environment as
particles and  gases.   Used in conjunction with the National Atmospheric Deposition Program
(NADP), CASTNET determines the effectiveness of national emission control programs through
monitoring geographic and  long-term temporal trends  hi atmospheric  deposition.  CASTNET
measures weekly average  atmospheric concentrations of sulfate, nitrate, ammonium,  sulfur
dioxide and  nitric acid and  hourly  concentrations  of ambient  ozone levels in  rural  areas.
Currently, 79 monitoring  stations operate across the United States.  EPA operates most of the
monitoring stations; however, the National Park Service operates 26 stations hi cooperation with
EPA.

Climate Protection Program

       EPA  manages a  number  of efforts,  such  as  the Energy  Star  programs,  voluntary
transportation efficiency programs (all described under the Climate Change objective) as well as
the EPA Clean Automotive Technology (CAT) program, to remove barriers hi the marketplace
and to deploy technology faster hi the residential, commercial,  transportation, and industrial
sectors of the economy.

       The transportation component of EPA's Climate  Protection Programs has produced
important advancements  that will  generate  substantial  energy and carbon benefits   while
improving  America's competitiveness.  EPA manages a number of efforts, such as the EPA
Clean Automotive Technology program and  the Fuel Cell and Hydrogen program, to develop
advanced  technologies, to  remove technology  barriers  hi the  marketplace,  and to deploy
technology faster in the  residential,  commercial, transportation, and industrial sectors  of the
economy. (The Energy Star  and voluntary transportation efficiency programs described under the
Climate Change objective also remove barriers in the marketplace.)
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       The Agency's Clean Automotive  Technology program will further develop advanced
clean and fuel-efficient automotive technology with the end result being to better protect the
environment and save energy.  The Clean Automotive Technology program focuses efforts on
achieving significant fuel economy gams by beginning to transfer the highly efficient hybrid
powertrain components, originally developed for passenger car applications, to meet the more
demanding size, performance,  durability, and towing requirements of vehicles such as Sport
Utility Vehicles (SUVs), pickup trucks, and urban delivery vehicles.

       The emphasis of Clean Automotive Technology program work for the next 5-10 years
will be research and collaboration with  the automotive, trucking, and fleet industries under
CRADAs, applying EPA's unique knowledge of hydraulic  hybrid technology and advanced
clean-engine technologies to vehicles such as large SUVs, pickup trucks, urban delivery trucks,
school buses, shuttle buses, and refuse trucks.  Through work within the CRADAs, significant
elements of EPA's technologies will be demonstrated in real-world applications and introduced
commercially by vehicle manufacturers between 2005 and 2010.

       The Clean Automotive Technology program commits EPA to develop technology by the
end of the decade to satisfy stringent criteria emissions requirements and up to a doubling of fuel
efficiency in  personal vehicles such  as SUVs, pickups, and urban delivery vehicles — while
simultaneously meeting  the  more  demanding size,  performance,  durability, and  power
requirements of these vehicles.  Expanding this advanced technology into 50 percent of new light
trucks by 2020 would generate annual fuel savings of 8 billion gallons, while tailpipe carbon
emissions would fall by 20 MMTCE.

       Under the Fuel Cell  and Hydrogen program, EPA upgraded the facilities at the National
Vehicle and Fuel Emissions Laboratory (NVFEL) to safely handle hydrogen,  certified the first
fuel cell vehicle, and announced new partnerships with industry and the Department of Energy.
EPA will also  play a leadership role  in advancing fuel  cell  vehicle and hydrogen  fuel
technologies and influencing the direction of technological and policy progress in support of
U.S. environmental, energy, and national  security goals.  EPA will achieve this by establishing
the capability to test a range of fuel  cell  vehicles and components; taking the national lead in
establishing emissions and fuel economy  testing protocols and innovating safe  laboratory
handling of hydrogen fuel; establishing a peer-reviewed life cycle model and promoting its use in
R&D and in policy decisions  regarding  fuel cell vehicle technology pathways;  and working
closely with other key stakeholders through public/private partnerships like the California Fuel
Cell Partnership to facilitate the commercialization of innovative technologies.

       In FY 2005, the Clean Automotive Technology Program will:

       •      demonstrate  technology for a hydraulic-hybrid urban delivery vehicle  or large
              SUV that achieves 40-70 percent better fuel efficiency than the typical baseline
              vehicle;
       "      provide CRADA partners the engineering expertise necessary to transfer EPA's
              unique  and  innovative   hydraulic  hybrid  and  clean-and-efficient  engine
              technology;
       »      continue to participate  in effective government/industry partnerships that advance
              fuel cell vehicle  technology.


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             "      certify fuel cell vehicles for several manufacturers;
             •      test and evaluate fuel cell vehicles as part of DOE's National Validation Program;
             •      establish national standards for life  cycle  modeling  of fuel  cells and fuels,
                    establish rigorous test procedures for fuel cell vehicles;
             •      expand hydrogen refueling capabilities at NVFEL to support broader fuel cell
                    demonstrations in Southeast Michigan,  and to demonstrate the efficiency and
                    economics of innovative hydrogen production technologies.

      Research: Tropospheric Ozone

             While many of the adverse effects of. tropospheric ozone are well known,96 controlling
      ozone is not an easy task because of the complex chemical reactions and atmospheric conditions
      influencing ozone formation.  EPA's Tropospheric Ozone Research program provides the data
      and tools needed by Federal, state, tribal, and regional authorities to meet the NAAQS,  and, in
      turn, to effect improvements in human health and the environment.

             Tropospheric ozone research is guided by a Multi-Year Plan (MYP),97 an important tool
      the Agency uses to ensure that the planned research is relevant to EPA and states needs and
      addresses  the highest priority scientific  questions.  The MYP identifies research goals and
      priorities,  specific research  needed  to  address  the  most  compelling  science needs,  and
      opportunities  for collaboration and integration both within and outside of EPA. The MYP also
      communicates important research results.  In FY  2005, the tropospheric ozone  MYP  will be
      combined with the PM MYP to form a comprehensive  criteria pollutant MYP. This combined
      plan will undergo peer review by  the Clean Air Science Advisory Committee (CASAC), a
      subcommittee of EPA's Science Advisory Board. (Criteria: Relevance)

             As outlined in the MYP, in FY 2005 EPA's Tropospheric Ozone Research program will
      focus  on improving the predictive capability of, and speeding up the processing time  for, air
      quality models  needed by the  states to determine how  best to meet the ozone  NAAQS
      (Criterion: Performance).   This will include improvements to the models used  to estimate
      emissions of volatile organic compounds and nitrogen oxides that form ozone in the atmosphere,
      and producing refined estimates of natural source emissions  from forests and more spatially
      resolved data on emissions from heavy-duty diesel trucks.  The next release of the Community
      Multi-Scale Air Quality (CMAQ) model, widely used by states and cities, will incorporate these
      improved emission models  and new atmospheric chemistry  data. In addition, EPA will develop
      advanced measurement methods and diagnostic information to evaluate the models.  The model
      improvements resulting from this research will provide Federal and state air quality managers
      with the improved tools they need to more easily identify and implement cost effective control
      strategies required to attain the ozone NAAQS.
       96 U.S. EPA, Office of Air and Radiation. How Ground-level Ozone Affects the Way We Live and Breathe. Washington, DC: EPA. Accessed January 8,2004. Available only
I       on the Internet: http://www.epa.gov/air/urbanair/ozone/index.html
       97 U.S. EPA, Office of Research and Development. Tropospheric Ozone Multi-Year Plan. Washington, DC: EPA. Accessed October 22,2003. Available only on the Internet:
       http://www.epa.gov/osp/myp.htnrfozone

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Research: Particulate Matter

       EPA's PM research portfolio is aligned with the ten priority topics identified by the
National Research Council (NRC), 8 which has conducted periodic reviews of the PM research
program since 1998 to ensure the program's relevance to the highest priority research needs and
to monitor research performance.  In addition to the NRC, the CASAC and EPA's Board of
Scientific Counselors (BOSC) periodically evaluate the PM research program's direction and
products (Criterion: Quality).  The Agency plans to complete an updated draft PM Research
Strategy for CASAC review after completion of the final NRC report, which is expected in early
2004. The Strategy will outline research needs and priorities and the  general approach the
program will take to meet them.   A  PM Research Multi-Year Plan (MYP)99 describes the
specific research EPA will conduct to implement the Strategy. (Criterion: Relevance)

       The PM MYP addresses the topics raised by the NRC, and describes several  critical
research issues included in multiple NRC topics.  Among these critical research issues are: 1)
differentiating between the health effects of PM and  the health effects of other air pollutants; 2)
identifying the health effects and biological mechanisms of PM constituents (e.g., sulfates versus
nitrates versus organic and elemental carbon, and  metals); 3) understanding the quantitative
relationship  between  exposure  to  different  particles  and various health effects;  and, 4)
understanding human exposures to PM constituents and sources  of PM.  The PM  MYP also
addresses the need to improve information on the rate and characteristics of emitted particles and
to improve modeling capabilities for predicting and quantifying future PM concentrations and
their sources, and it describes the research needed to support the states as they implement plans
to meet the PM NAAQS. (Criterion: Relevance)

•      Differentiating between the health effects of PM and other air pollutants

       Research designed to understand and disentangle the effects of PM and co-pollutants will
include studies of how PM and other air pollutants interact as well as toxicology and human
clinical studies to understand the effects of co-pollutants on PM health effects.  Epidemiology
studies and animal models will  look at the health effects of PM  and co-pollutants on specific
populations  (e.g.  the  elderly, children, those with respiratory  illness)  believed to be  most
vulnerable to PM. Some of the  epidemiology studies will be conducted as part of EPA's large
multidisciplinary study in Detroit, Michigan.

       Related research will focus on identifying risk factors for  vulnerable populations.  This
will include continuing research to identify these groups, and to develop animal  models of
human susceptibility. Collaborative epidemiology/exposure studies will identify harmful effects
on vulnerable groups.

•      Identifying the health effects and biological mechanisms of PM
98 For the latest report, see National Research Council. (2001) Research Priorities for Airborne Particulate Matter, m. Early Research Progress. Washington, DC: National
Academy Press. Available on the internet: htrp://www.nap.edu/books/0309073375/html/ (6/4/03).
99 U.S. EPA, Office of Research and Development  Particulate Matter Multi-Year Plan. . Washington, DC: EPA. Accessed January 8,2004. Available only on the Internet:
http://www.epa.gov/osp/myp/pm.PDF (1/8/04)

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       Research in FY 2005 will address the need for a better understanding of the physical,
chemical, and biological characteristics of particles responsible for adverse health effects, and
the relationships between PM constituents and adverse health effects.

       The  Agency will continue  to conduct  studies of disease  processes  in vulnerable
populations in order to shed light on existing evidence of long-term health effects of PM. These
studies will better characterize and quantify effects and the constituents most responsible for the
effects.  Epidemiological, human clinical,  and animal studies will evaluate and characterize the
differences between PM sources, components, and fine, ultrafine, and coarse particles hi healthy
and compromised individuals and extrapolate between animals and humans. This will improve
our ability to answer  fundamental questions about the relative health risks attributed  to PM
components and size fractions so  that National Ambient Air Quality Standards can be set to
adequately protect public health.

       As research results hi additional information and understanding of the characteristics of
PM components and mixtures most responsible for adverse health effects, EPA will engage in
toxicological  research to determine  the  underlying  mechanisms  through  which  minute
concentrations of PM result hi adverse health impacts.

•      Understanding the quantitative relationship between exposure to different particles and
       various health effects

       Health effects research to fill current gaps hi our understanding of the observed health
effects associated with PM will include determining dose-response relationships between PM
and adverse health effects.  Related research on populations especially vulnerable to PM will
determine how the risk factors for these populations influence dose-response relationships.

•      Understanding human exposures to PM constituents and sources of PM

       Human exposure research will utilize both measurements and modeling to develop  an
unproved understanding of the relationship of ambient levels of PM constituents to indoor and
personal levels and to identify relative source contributions to personal exposures.   EPA will
accomplish much  of this effort through a large  multidisciplinary study in Detroit,  Michigan.
This study will include efforts to characterize human exposures to PM and air toxics and to relate
those exposures to sources in the community.  The field measurement portion of the  Detroit
study, initiated hi FY 2004, will continue through FY 2006.

•      Implementation research

       Continuing research hi FY 2005 will support the efforts of EPA, states, tribes, and local
air quality officials to determine which areas attain the PM NAAQS, and provide them with tools
to identify the most cost-effective mix of controls that could be deployed to meet the standards.
This  research will include  monitoring  and atmospheric  measurements,  development, and
evaluation of air quality and source-receptor  models,  emissions  characterization methods and
measurements, and testing and evaluation of multi-pollutant control technologies.

       Research to provide tools to quantify emissions, identify key sources of ambient PM, and
develop the science to support control strategies for attaining clean air standards, will continue hi

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FY 2005. Atmospheric chemistry and modeling research will continue to support improvements
in the predictive capabilities  of the  Community Multi-Scale Air Quality  (CMAQ) modeling
system for PM, and an updated version of CMAQ will be delivered to the states in FY 2005 for
them to  use for developing  state  implementation plans  (R&D  Criterion:  Performance).
Atmospheric measurement research will focus on developing  and delivering to the states  a
Federal Reference Method and/or a Federal Equivalent Method for measuring coarse particles.

       Continuing  implementation-related research also  will  generate  improved  data on
emissions for ai;  quality models and help determine what  sources are contributing to PM
measured in ambient air through use  of unique chemical  fingerprints.   This will include
quantifying  ammonia emissions (a precursor to PM formation in the atmosphere) from poultry
and cattle raising operations and producing data on the  rate and  chemical composition  of
particles emitted from jet aircraft engines.

•      PM Centers and Science to Achieve Results (STAR)100

       Through a competitive process, EPA established five extramural PM Research Centers,
lasting from 1999 to 2004 through EPA's Science to Achieve Results (STAR) research program.
In FY 2005, EPA will issue new awards for Centers to conduct health effects, exposure, source
apportionment, and  PM NAAQS implementation research.  In addition, in FY 2005 a major
epidemiologic study on the health effects of long-term exposure to PM will be underway.

       Other research supported by  the STAR program will  address  aspects  of  PM health
effects, such as mechanisms and susceptibility, and issues related to NAAQS implementation.
The STAR  research program  uses a competitive peer review  process to ensure that only high-
quality research proposals receive funding support (Criterion: Quality).  STAR is an integrated
part of EPA's research program and provides the Agency access to a broad  community  of
researchers  whose  efforts have significantly  improved  the  scientific  foundation  for  EPA's
decision-making process in multiple areas, including the Particulate Matter Program.

       EPA's PM  program  was evaluated for the FY 2005 President's  Budget  using the
Administration's  Program Assessment Rating Tool  (PART).  The Agency is committed  to
addressing the findings in the PART, such as developing long-term outcome-oriented and annual
performance measures, and annual efficiency measures.

Research: Air Toxics

       The  Agency has developed an Air Toxics Research  Strategy101 that outlines research
needs and priorities consistent with programmatic regulatory directions.  In addition, the Air
Toxics Research Multi-Year Plan (MYP),102 another tool the Agency uses to plan and implement
ah" toxics research, articulates the chief goals of EPA's air toxics research program as reducing
100 The STAR website can be accessed at: http://es.epa.gov/ncer/grants/ (Accessed January 14,2004.)
101 U.S. EPA, Office of Research and Development. Air Toxics Research Strategy. Washington, DC: EPA. Accessed October 12,2003. Available only on the Internet:
http://www.epa.gov/ord/htm/Air_Toxics.pdf
102 U.S. EPA, Office of Research and Development. Air Toxics Multi-Year Plan . Washington, DC: EPA. Accessed January 8,2004. Available only on the Internet:
http://www.epa.gov/osp/mvp/airtox.pdf
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uncertainty in air toxics assessments and providing tools to implement cost-effective approaches
to reduce the  health  risks of exposure to hazardous air pollutants or "HAPs."  (Criterion:
Quality)  Federal, state and local ah- quality officials will use the results from this research to
reduce exposures to HAPs and improve air quality across the country.

       In FY 2005, EPA will conduct research to reduce uncertainty in air toxics assessments
under both Goals 1 and 4 (in the Human Health Risk Assessment program). Research under
Goal 1 to develop an acute risk assessment approach will include the use of animal studies to
predict acute neurotoxicity in humans and the identification of model forms common to animals
and humans that relate pulmonary and neurobehavioral effects from exposure to hazardous air
pollutants.   EPA researchers will  improve the chronic risk  assessment  approach by using
proteomics to determine  common  mechanisms of injury  within  the  classes of halogenated
organics, metals, aldehydes and ketones, and polycyclic aromatic hydrocarbons.

       The Agency will  also continue to develop  community assessment  tools for air toxics.
This will include the investigation of acute  neurotoxicity, homology between species, and
common mechanisms of injury. Research to better understand human exposure to air toxics will
be accomplished through the large multidisciplinary study in Detroit, Michigan mentioned above
in the description  of particulate matter research.   The  study will  develop  an  improved
understanding of the relationship of ambient levels of air toxics to indoor and personal levels and
will  attempt to identify  relative source contributions  to personal  exposures.   (Criterion:
Performance)

       Research to provide tools to implement cost-effective approaches that reduce the health
risks  from  stationary point,  area,  mobile,  or indoor  sources  of air toxics  will  include
characterizing  sources that contribute to indoor concentrations of air  toxics, emissions from
small non-road engines, and determining temporal and spatial allocation of truck activity in the
Agency's modal-based  Mobile  Emissions Assessment  System for Urban  and Regional
Evaluation (MEASURE) model. Residual risk assessment and national scale assessment support
will include exposure research to prioritize health hazard information, air quality modeling tools
to predict ambient concentrations,  and an evaluation of methods to measure trace organics
(Criterion:  Performance).

       The Agency will continue its joint effort with industry to support the Health Effects
Institute, which  sponsors research on the health effects  of pollutants from motor vehicles and
other sources.  Current efforts to more accurately assess exposures to air toxics are developing
the foundation for health studies of air toxics using appropriate sites, populations, and endpoints.

       As part of the efforts to monitor health and exposures related to the World Trade Center
(WTC) disaster, the Agency will support extended follow-up  associated with the Agency for
Toxic Substances and Disease Registry's (ATSDR) registry of residents and workers affected by
the WTC disaster.  Currently, a baseline health Registry has been set up.  Resources hi FY05 will
continue to support a multi-agency  effort on an additional round of registrant follow-up to get
updates on the health status of registrants, and a longitudinal analysis to assist hi identifying the
nature and extent of long-term health impacts from exposure to the WTC disaster.
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FY 2005 CHANGE FROM FY 2004
~"'	        	   ^^^^••IIMMIII	I	mi-                                       j

S&T


•      (-$200,600):  These resources  represent savings that will result  from consolidation of
many  information technology  (IT)  services,  including call  center and service desk, server
management, hardware and software acquisition,  and IT equipment standardization.  This will
result  in enhanced security and  uniform maintenance  requirements.   Since  these resources
represent an efficiency savings, there is no negative programmatic impact.


•      There are additional increases for payroll, cost of living, and enrichment for new and
existing FTE.



ANNUAL PERFORMANCE GOALS AND MEASURES

Participate Matter Research

Long-term Outcome Measusre            Measure under development.
Annual Measure                       Measure under development.
Efficiency Measure                     Measure under development.


Clean Automotive Technology

In 2005     Transfer hybrid powertrain components, originally developed for passenger car applications, to meet
           size,  performance, durability, and towing requirements of Sport Utility Vehicle  and urban delivery
           vehicle applications with an average fuel economy improvement of 30% over the baseline.

In 2004     Transfer hybrid powertrain components, originally developed for passenger car applications, to meet
           size,  performance, durability, and towing requirements of Sport Utility Vehicle  and urban delivery
           vehicle applications with an average fuel economy improvement of 25% over the baseline.

Performance Measures:                    FY2003        FY2004       FY2005
                                        Actuals       Pres. Bud.      Pres. Bud.
Fuel Economy of EPA-Developed SUV
Hybrid Vehicle over EPA Driving Cycles

Tested                                                    25.2           26.3            MPG


Baseline:   The average fuel economy of all SUVs sold in the US in 2001 is 20.2 mpg. Values for 2002, 2003,
           and 2004 represent 15%, 20%, and 25% improvements over this baseline, respectively.  The long-term
           target is to demonstrate a practical and affordable powertrain that is 30% more efficient by 2005, and
           100% more efficient by 2010.
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Research

PM Measurement Research

In 2005     Deliver and transfer improved receptor models and data on chemical compounds emitted from sources
           so that, by 2006, EPA's Office of Air and Radiation and the states have the necessary new data and
           tools to predict, measure, and reduce ambient PM and PM emissions to attain the existing PM National
           Ambient Air Quality Standards (NAAQS) for the protection of public health.

Performance Measures:                    FY2003       FY2004       FY2005
                                         Actuals        Pres. Bud.      Pres. Bud.
Improved receptor models and data  on
chemical compounds emitted from sources                                   ™ ,„ „ ,^           ,
                                                                      09/30/05          data


Baseline:    Following designation of non-attainment areas for the Particulate Matter National Ambient Air Quality
           Standards in 2004 and 2005, states will need to immediately begin developing State Implementation
           Plans (SIPs).  SIPs incorporate source emission reduction rules that once implemented lead to cleaner
           air and standards attainment. They are due to EPA three years after designation. SIP development is
           predicated on the availability of recent and credible information on source emission characteristics and
           receptor-oriented models that can identify sources contributing to locally observed PM concentrations
           based on their chemical signatures. A next update (FY 2005) of these constantly improving models
           and the latest hi source signatures will be produced to help states with their SIPs as part of a weight of
           evidence  approach that use these and chemical transport modeling to tag specific sources with
           reduction targets.

           Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of
           EPA research programs' relevance, quality, and successful performance to date, in accordance with
           OMB's Investment Criteria for  Research and Development.   These evaluations will include an
           examination  of  a program's  design  to determine the appropriateness  of a  program's  short-,
           intermediate-,  and long-term goals and its  strategy  for attaining these.    Reviewers will also
           qualitatively  determine whether EPA has  been successful  hi  meeting its  annual  and long-term
           commitments for research.  Recommendations and results from these reviews will improve the design
           and management of EPA research programs and help to measure then" progress under the Government
           Performance and Results Act (GPRA).
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005  Performance Measure; Fuel Economy of EPA-Developed SUV Hybrid Vehicle
over EPA Driving Cycles Tested

Performance Database:  Fuel economy test data for both urban and highway test cycles under
the EPA Federal Test Procedure for passenger cars.

Data Source:  EPA fuel economy tests performed at the National Vehicle and Fuel Emissions
Laboratory (NVFEL), Ann Arbor, Michigan

QA/QC Procedures:   EPA fuel  economy tests are performed  in  accordance with the EPA
Federal Test  Procedure and  all  applicable  QA/QC procedures.   Available on  the  Internet:
http://www.epa.gov/otaq/sftp.htm.
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Methods, Assumptions and Suitability: N/A

Data Quality Reviews: EPA's NVFEL laboratory is recognized as a national and international
facility for fuel economy and emissions testing.  NVFEL is also the reference point for private
industry.

Data Limitations:  Primarily due to EPA regulations, vehicle fuel economy testing is a well
established and precise exercise with extremely low test to test variability (well less than 5%).
Additional information is available on the Internet: http://www.epa.gov/otaq/testdata.html  One
challenge relates  to fuel economy testing of hybrid  vehicles (i.e., more than one source  of
onboard power), which is more complex than testing of conventional vehicles. EPA has not yet
published formal regulations to  cover hybrid  vehicles. However,  relevant  information  is
available on the Internet:  http://www.ctts.nrel.gov/analysis/hev_test/procedures.shtml

Error Estimate:  N/A

New/Improved Data or Systems:  EPA is using solid engineering judgment and consultations
with other expert organizations (including major auto companies) to develop internal procedures
for testing hybrid vehicles.

References:  See  http://www.epa.gov/otaq/testproc.htni for additional information about testing
and measuring emissions at the NVFEL.
EFFICIENCY MEASURES\MEASUREMENT DEVELOPMENT PLANS

       As a measure of efficiency, the Agency will track the time it takes to process particulate
matter research grant proposals from RFA closure to submittal to EPA's Grants Administration
Division. The Agency will also track the number of peer-reviewed particulate matter research
journal articles produced per scientific/engineering FTE.
COORDINATION WITH OTHER AGENCIES

       The Agency coordinates its tropospheric ozone research program with other agencies'
research efforts, including those of the Departments of Energy and Commerce, and the National
Science Foundation. All emissions, atmospheric chemistry, air quality modeling, and monitoring
research in this area is coordinated through the efforts of the North American Consortium for
Atmospheric  Research hi Support of Air Quality Management (NARSTO), a public/private
partnership whose membership spans governments, utilities, industry, and academia throughout
Mexico, the United States, and Canada.

       EPA and the National Institutes of Health coordinate research efforts on the health effects
of air pollution, recently co-sponsoring a workshop on air pollution and. cardiovascular disease.
Following this workshop, EPA and the National Institute of Environmental Health Sciences
(NIEHS) issued a joint solicitation on the role of air pollutants hi cardiovascular disease with the
potential to fund approximately 10-15 grants ranging from two to four years in duration. EPA,


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NIEHS  and the National  Heart, Lung, and Blood Institute  are  continuing these successful
coordination efforts and discussing possibilities for future collaboration.

      The National Research Council's PM research plan serves as the principal guideline for
EPA's PM research program.  EPA coordinates with other Federal agencies (e.g., the National
Institutes of Health and the Department of Energy) to review ongoing PM research activities and,
where appropriate, re-focus activities to be consistent with the NAS plan.

      The PM science planning community has pointed to the need to conduct its health effects,
exposure,  and  monitoring  research in  close  coordination so that  PM  toxicological,
epidemiological, and exposure research are done in combination. EPA will continue to focus on
such coordination through activities such as: (1) playing a lead role in coordinating all Federal
agency  research on PM health, exposure, and atmospheric processes under  the Air Quality
Research Subcommittee of the President's  Committee on Environment and Natural Resources
(CENR/AQRS); (2) supporting an open inventory of public and private ongoing PM research;
and (3)  completing a Research Strategy for PM that will benefit all organizations engaged in
PM-related research.  Another key opportunity for coordinating research supporting state efforts
to implement the PM NAAQS is through the expansion of NARSTO, which has broadened its
mission to include PM-related efforts.

      EPA's Air Toxics Research Program works with other Federal agencies,  such as the
National Institute of Environmental Health Sciences  (NIEHS) and the National Toxicology
Program (as a source of toxicity testing data), as needed.  The Health Effects Institute conducts
complementary research related  to air  toxics that is coordinated with EPA activities.    In
addition, EPA conducts research on advanced source measurement approaches jointly with the
Department of  Defense  through the Strategic  Environmental Research and Development
Program (SERDP).

      EPA works with the National Park Service hi running CASTNET. DOE will pursue
actions such as promoting the research, development, and deployment of advanced technologies
(for example, renewable energy sources).   In the case of fuel cell vehicle technology, EPA is
working closely with DOE as  the Administration's FreedomCAR initiative develops, taking the
lead on emissions-related issues.
STATUTORY AUTHORITIES

Clean Air Act Amendments
Comprehensive Environmental  Response, Compensation and  Liability Act (CERCLA), as
   amended by the Superfund Amendments and Reauthorization Act of 1986 (SARA)
Energy Policy Act of 1992
Federal Technology Transfer Act, 15 U.S.C. - Section 370la
Global Climate Protection Act, 15 U.S.C. 2901 - Section 1103
National Climate Program Act (1997)
Nuclear Waste Policy Act of 1982
Pollution Prevention Act, 42 U.S.C. 13101  et seq. - Sections 6602, 6603, 6604, and 6605
Safe Drinking Water Act
U.S. Global Change Research Program Act of 1990

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United Nations Framework Convention on Climate Change
Uranium Mill Tailings Radiation Control Act of 1978
Waste Isolation Pilot Plan (WIPP) Land Withdrawal Act
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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                  CLEAN AIR AND GLOBAL CLIMATE CHANGE
Categorical Grant
  Radon, 1-65
  State and Local Air Quality Management, 1-14,1-15
  Tribal Air Quality Management, 1-14
Children and other Sensitive Populations, 1-14
Clean Air Allowance Trading Programs, 1-14,1-15,1-19,1-133
Clean School Bus Initiative, 1-15,1-39,1-42
Climate Protection Program, 1-111,1-112,1-113,1-114,1-115,1-133,1-135
Congressionally Mandated Projects, 1-14,1-111,1-133
Federal Stationary Source Regulations, 1-14,1-15,1-16,1-42
Federal Support for Air Quality Management, 1-14,1-15,1-31,1-42,1-133,1-135
Federal Support for Air Toxics Program, 1-14,1-15,1-36,1-42,1-133
Federal Vehicle and Fuels Standards and Certification, 1-14,1-15
Homeland Security
  Critical Infrastructure Protection, 1-14
  Preparedness, Response,  and Recovery, I-100
Human Health Risk Assessment, 1-141
Indoor Air
  Asthma Program, 1-65
  Environment Tobacco Smoke Program, 1-65
  Radon Program, 1-65
  Schools and Workplace Program, 1-65
International Capacity Building, 1-14,1-40,1-115,1-117,1-121,1-126
Radiation
  Protection, 1-100,1-101,1-133
  Response Preparedness, I-100,1-102
Research
  Air Toxics, 1-133
  Particulate Matter, 1-133
  Troposphere Ozone, 1-133
Science Advisory Board, 1-9,1-37,1-52,1-53,1-137
Stratospheric Ozone
  Domestic Programs, 1-92,1-93
  Multilateral Fund, 1-92

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Goal 2: Clean and Safe Water

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification

Table of Contents                                   	
Goal 2: Clean and Safe Water	II-l
       Protect Human Health	11-12
       Protect Water Quality	II-50
       Enhance Science and Research	11-86
       Subject Index	II-98

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                           Environmental Protection Agency

            FY 2005 Annual Performance Plan and Congressional Justification

                                 Clean and Safe Water

STRATEGIC GOAL: Ensure drinking water is safe. Restore and maintain oceans, watersheds,
and  their aquatic  ecosystems to protect human health, support  economic  and recreational
activities, and provide healthy habitat for fish, plants, and wildlife.

                                  Resource Summary
                                  (Dollars hi thousands)


Clean and Safe Water
Protect Human Health
Protect Water Quality
Enhance Science and Research
Total Workyears
FY2003
Actuals
$3,725,201.9
$1,259,787.6
$2,346,144.8
$119,269.5
2,941.4
FY2004
Pres. Bud.
$2,959,731.8
$1,192,187.1
$1,647,043.1
$120,501.6
3,053.6
FY2005
Pres. Bud.
$2,936,968.6
$1,170,339.6
$1,645,669.9
$120,959.1
3,041.4
FY 2005 Req. v.
FY 2004 Pres
Bud
($22,763.3)
($21,847.5)
($1,373.3)
$457.5
-12.3
BACKGROUND AND CONTEXT

       Over the 30 years since enactment of the Clean Water and Safe Drinking Water Acts
(CWA and SOW A), government, citizens, and the private sector have worked together to make
dramatic progress hi improving the quality of surface waters and drinking water.

       Thirty  years ago,  much of the  nation's tap water had either very limited treatment
(usually disinfection) or no treatment at all.  About two-thirds of the surface waters assessed by
states were not attaining basic water quality goals and were considered polluted.1 Some of the
Nation's waters were open sewers posing health risks and many water bodies were so polluted
that traditional uses, such as swimming, fishing, and recreation, were impossible.

       Today,  drinking water systems  monitor and treat water  to  assure compliance  with
drinking water standards covering  a wide range of contaminants. In addition, we now protect
sources of drinking water through activities such  as regulating injection of wastes to ground
waters. A massive investment of federal, state,  and local funds resulted in a new generation of
wastewater treatment facilities able to  provide "secondary" treatment or better.   Over 50
categories of industry now comply with nationally consistent discharge regulations. In addition,
sustained  efforts to implement "best management practices" have helped reduce runoff of
pollutants from diffuse or "nonpoint" sources.

       Cleaner, safer water has renewed recreational,  ecological,  and  economic interests hi
communities across the nation. The recreation, tourism, and travel industry is one of the largest
1 United States Environmental Protection Agency Office of Water. 1998. Clean Water Action Plan: Restoring and Protecting
America's Water. Washington, DC: Government Printing Office.

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employers in  the  nation,  and  a significant  portion of  recreational spending comes  from
swimming, boating, sport fishing, and hunting.2  Each year, more than 180 million people visit
the shore for recreation.3  In 2001, sportspersons spent a total of $70 billion- $35.6 billion on
fishing, $20.6 billion on hunting, and $13.8 million on items used for both hunting and fishing.
Wildlife watchers spent an additional  $38.4 billion on their activities around the home and on
trips away from home.4  The commercial fishing industry,  which also requires clean water and
healthy wetlands, contributed $28.6 billion to the  economy in 2001.5  The Cuyahoga River,
which once caught fire, is now busy with boats and harbor businesses that generate substantial
revenue for the City of Cleveland. The Willamette River in Oregon has been restored to provide
swimming, fishing, and water sports.  Even Lake Erie,  once infamous for its dead fish, now
supports a $600 million per year fishing industry.6

       Much of the dramatic progress hi improving the nation's water quality over the  past 30
years is directly attributable to our improvements in water  infrastructure.  Entering the 21st
century, however, the job is far from over. Despite the gains  made since the passage of the
CWA and the  SDWA, approximately 40% of the nation's waters assessed by states still do not
meet basic water quality standards.7  Remaining water quality problems are not easily remedied:
they come not just from discharge from pipes, but from diffuse  sources — farming and forestry,
construction sites, urban streets,  automobiles, atmospheric deposition, even suburban homes and
yards.  They are no longer just chemical hi nature.  There  are biological threats to our nation's
waters that we must address as  well if we  are to truly achieve  the stated goal of the CWA to
"restore and  maintain the chemical, physical, and biological integrity of the nation's waters."

        States have identified more than 25,000 waterways as being impaired and have  listed a
group of principal  causes of impairment  to the waterways.8   One of these impairments is
pesticides. The U.S. Geological Survey (USGS) has synthesized contaminant and nutrient data
from its 1992-1998 National Water Quality Assessment  (NAWQA) program.  This assessment
found that detectable  concentrations  of pesticides are widespread in urban, agricultural and
mixed-use  area  streams.    Interestingly,   streams in  urban  areas  generally have  higher
concentrations of  insecticides  than streams  in agricultural areas,  however incidences  are
generally  lower.    Recent  trends  toward  low-density development (sprawl)  will  increase
waterways'  overall exposure to pesticides because it leaves fewer pristine natural areas and
fewer trees and exposes more land to pesticides.

        Reductions of pesticide concentrations in streams and groundwater require management
strategies that focus on  reducing chemical use.  This means local and regional management
strategies are needed to account  for geographic patterns in chemical use and natural factors. One
of the primary concerns  for water quality hi the U.S. is  the role of small, dispersed sources of
2 Travel Industry Association of America. Tourism for America, II'1' Edition. Washington, DC: Travel Industry of America.
3 Pew Oceans Commission. 2002. America's Living Oceans Charting a Course for Sea Change. Arlington, VA: Pew Oceans
Commission.
4 U.S. Fish and Wildlife Service. 2002. 2001 National Survey of Fishing, Hunting and Wildlife-Associated Recreation.
Washington, DC: Government Printing Office.
5 National Marine Fisheries Service. 2002. Fisheries of the U.S. 2001. Washington, DC: Government Printing Office.
6 United States Environmental Protection Agency Office of Water. 1998. Clean Water Action Plan: Restoring and Protecting
America's Water. Washington, DC: Government Printing Office.
7 303(d) information comes from: U.S. Environmental Protection Agency. States' Listing of Impaired Waters as Required by
Clean Water Act Section 303(d). Washington, DC. Available online at  http://oaspub.epa.gov/waters/nationaLrept.control.
8 303(d) information comes from: U.S. Environmental Protection Agency. States' Listing of Impaired Waters as Required by
Clean Water Act Section 303(d). Washington, DC. Available online at  http://oaspub.epa.gov/waters/nationaLrept.control.

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non-point source pollution.  The major factors  that contribute  to  the  increasing levels  of
pesticides found in streams and groundwater include the application pattern of pesticides, the soil
condition and the  amount of rainfall or irrigation, which can increase pesticide run-off into
streams and rivers.

       Communities are challenged to find the fiscal resources to sustain the gains of the past 30
years, while providing clean and safe water for the  future. They must find ways to replace aging
infrastructure, to meet growing  infrastructure  demands  fueled by population growth, and  to
secure their water and wastewater infrastructure against threats. To further our progress toward
clean waters  and safer drinking water,  we must  both maintain our  commitment to the core
measures we have already established and look for  new ways to improve water quality and
protect human health.
MEANS AND STRATEGY

       EPA will focus on four key strategies to accelerate  progress toward achieving  the
Nation's clean and safe water goals. To better address the complexity of the remaining water
quality challenges, EPA will promote local watershed approaches to achieving the best and most
cost effective solutions to local and regional water problems. To protect and build on the gains
of the past, EPA will focus on its core water programs.  To maximize the impact of each dollar,
EPA will continue to strengthen our vital partnerships  with States, Tribes, local  governments,
and other parties that are also  working toward the common goal of improving the Nation's
waters.  To leverage progress through innovation, EPA will promote water quality trading, water
efficiency, and other market based approaches.

       To  achieve  the Nation's  clean and  safe  water goals, EPA will operate under an
overarching watershed approach in carrying out its statutory authorities under both  the SDWA
Amendments of 1996 and the CWA. EPA is committed to helping local  governments meet the
challenges of water management in the 21st century in fiscally responsible and sustainable ways.
We want to maintain the improvements in water quality, while enabling communities to grow
and prosper.

       EPA's core water programs are the fundamental underpinning for protecting and building
on  the gains of the past. This approach calls  for setting watershed goals, assessing conditions,
determining sources of concern, addressing them using regulatory and voluntary tools, and then
re-evaluating and adapting plans as new information becomes available.   By  focusing and
integrating the work of EPA with sister agencies, States, Tribes,  local governments, industry, and
nonprofit organizations hi watersheds, we are able to pool hiformation, resources, and authorities
and focus our collective energies on our common environmental objectives. In watersheds, we
can better understand the cumulative impact of activities, determine the most critical problems,
better allocate limited financial  and human resources, engage stakeholders, win public support,
and make real improvements hi the environment.

       Maintaining high environmental standards and sustaining a healthy economy requires that
we work with States, Tribes,  local governments, and other  partners to optimize costs and
conserve our natural resources.  Innovative programs like water quality trading are based on a
broad  environmental perspective,  looking at  entire  watersheds.   Trading can  capitalize on

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economies of scale and control cost differentials among and between sources.  Trading is a
valuable tool to more cost-effectively implement TMDLs, and to enable communities to grow
and prosper while maintaining their commitment to water quality.  Trading can also be  an
appropriate mechanism in a pre-TMDL context.

       As  a result of mounting  evidence that  pesticide  use can lead to contamination  of
groundwater, the Agency has developed a groundwater strategy.  This strategy is designed to
protect our groundwater resources from pesticide contamination.  The Agency is working with
the States  and  Tribes to  implement local aspects of the strategy which includes providing
assistance in the development of Pesticide Management Plans  for  both generic aspects  of
pesticide use, as well as more specific plans for a particular pesticide.  The plans provide a
roadmap to managing pesticides through preventive and corrective measures.  In addition, EPA
has an extensive  scientific review  process  for data  on new  pesticides  prior to  granting
registration, and on older pesticides under the reregistration program.  One of the assessment
areas  for pesticides is the impact on ecosystems, including the likelihood of the chemical or
product to leach into groundwater, or to persist in surface water after it leaves the field as runoff.
Restrictions on use of  the pesticide can  be added to the registration (or reregistration),  if
warranted.

Research

       EPA's water research program supports the Agency's Clean and Safe Water  Goal  by
providing the scientific basis essential for protecting  human health and the environment.
Implementation of the research provisions in the 1996 Safe Drinking Water  Act (SDWA)
amendments and the Clean Water Act will provide improved tools (e.g., methods, models, risk
assessments, management  strategies,  and new  data)  to better evaluate  the risks posed  by
chemical and microbial contaminants that persist in the environment and threaten wildlife and,
potentially, human health.

       The drinking water research program will focus on filling key data gaps and developing
analytical  detection  methods  for  measuring  the  occurrence  of chemical and microbial
contaminants on the Contaminant Candidate List (CCL) and developing and evaluating  cost-
effective treatment technologies for removing pathogens from water supplies while minimizing
disinfection by-product  (DBP) formation.  The  water  quality research program will provide
approaches  and methods the Agency and its partners  need to develop and apply criteria to
support designated uses, tools to diagnose and assess impairment in aquatic systems, and tools to
restore and protect aquatic systems.  Water quality research will address a wide spectrum of
aquatic ecosystem stressors, with particular attention accorded to stressors that the Agency most
often  cites as causing water body  impairment,  including pathogens/indicators  of  fecal
contamination, nutrients, and suspended and bedded sediments.

       Several mechanisms are in place to ensure a high-quality water research program at EPA.
EPA's Science Advisory Board (SAB), an independently chartered Federal Advisory Committee
Act (FACA) committee, meets annually to conduct an  in-depth review and analysis of EPA's
Science and Technology  account.   The  SAB  provides its  findings to the House Science
Committee and sends  a written report on the findings to EPA's Administrator after every annual
review.  EPA's Board  of Scientific  Counselors (BOSC) provides counsel to the  Assistant
Administrator for the  Office of Research and Development (ORD)  on the operation of ORD's

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research program.  Also, under the Science to Achieve Results (STAR) program all research
projects are selected for funding  through a rigorous competitive external peer review process
designed to ensure that only the highest quality efforts receive funding support. EPA's scientific
and technical work products must also undergo either internal or external peer review, with
major or significant products  requiring external peer review.   The Agency's Peer  Review
Handbook (2nd Edition) codifies procedures and guidance for conducting peer review.
STRATEGIC OBJECTIVES AND FY 2005 ANNUAL PERFORMANCE GOALS

Protect Human Health

•      In 2005 93% of the population served by community water systems will receive drinking
       water that meets all  applicable health-based drinking water standards through effective
       treatment and source water protection.

•      In 2005 94% of the population served by community water systems will receive drinking
       water that meets  health-based standards with which  systems need to comply as of
       December 2001.

•      In 2005 75% of the population served by community water systems will receive drinking
       water that meets health-based standards with a compliance date of January 2002 or later.

•      In 2005 94% of community water systems will provide  drinking water that meets health-
       based standards with which systems need to comply as of December 2001.

•      In 2005 75% of community water systems will provide  drinking water that meets health-
       based standards with a compliance date of January 2002 or later.

•      In 2005 90% of the population served by community water systems in Indian country will
       receive drinking water that meets all applicable health-based drinking water standards.

•      In 2005 20% of source water areas for community water systems will achieve minimized
       risk to public health.

•      In 2005  80%  of the shellfish  growing acres monitored by states are  approved or
       conditionally approved for use.

•      In 2005 At least 1% of the water miles/acres identified by states or tribes as having a fish
       consumption advisory in 2002 will have improved water and sediment quality so that
       increased consumption offish and shellfish is allowed.

•      In 2005 Coastal and  Great Lakes beaches monitored by State beach safety programs will
       be open and safe for  swimming in over 94% of the days of the beach season.

•      In 2005 Restore water quality to allow swimming in not less than 2% of the stream miles
       and lake acres identified by tales in 2000 as having water quality unsafe for swimming.

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Protect Water Quality

•      In 2005 500 of the Nation's watersheds have water quality standards met in at least 80%
       of the assessed water segments.

•      In 2005 Water quality standards are fully attained in over 25% of miles/acres of waters
       by 2012, with an interim milestone of restoring 2% of these waters - identified in 2000 as
       not attaining standards - by 2005.

•      In 2005 Improve ratings reported on the national "good/fair/poor" scale of the National
       Coastal Condition Report for: coastal wetlands loss by at least 0.1 point; contamination of
       sediments in coastal waters by at least 0.1 point; benthic quality by at least 0.1 point; &
       eutrophic condition by at least 0.1 point

•      In 2005 Scores for overall aquatic system health of coastal waters nationally, and in each
       coastal region, is unproved  on the  "good/fair/poor"  scale  of the National Coastal
       Condition Report by at least 0.1 point

•      In 2005 In coordination with other federal partners reduce, by 11%, households on tribal
       lands lacking access to basic sanitation.

•      In 2005 Water quality in Indian country will be improved at not  less than 35 monitoring
       stations in tribal waters for which baseline data are available (i.e., show at least a 10%
       improvement for each of four key parameters: total nitrogen, total phosphorus, dissolved
       oxygen, and fecal coliforms.)

Enhance Science and Research

•      In 2005 By 2005, provide methods for developing water quality criteria so that, by 2008,
       approaches  and methods are available to States and Tribes for their use hi developing and
       applying  criteria for  habitat alteration,  nutrients,  suspended and  bedded sediments,
       pathogens and toxic chemicals that will  support designated uses for aquatic ecosystems
       and increase the scientific basis for listing and delisting unpaired water bodies under
       Section 303(d) of the Clean Water Act.

HIGHLIGHTS

Surface Water Protection

       Water Quality Monitoring:  EPA's fiscal year 2005 request will be the first step toward
solving the well-documented shortcomings of the Nation's water quality monitoring. The most
cost-efficient,  practical  means of making the most  of scarce resources is  information-based
management that uses tools such as prevention,  source water protection, watershed trading, and
permitting   on  watershed basis.    Monitoring  is  the  foundation  for   information-based
environmental management. It is imperative that we close data and information gaps as quickly
as possible:  they lead to market and regulatory failures, thwart our ability to document progress,

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and limit our ability to effectively target limited resources. Without adequate monitoring data,
the managers of water programs cannot inform the public about the condition of the Nation's
waters; make wise management decisions; demonstrate the success or failure of those programs;
and verify that resources are being used cost-effectively.  Federal, State, and local monitoring
data are essential for States to carry out their responsibilities for Clean Water Act requirements.
Strengthening our monitoring program for both surface and ground water will allow for special
emphasis on drinking water sources to support expeditious actions to protect or clean up these
critical resources.

       High quality, current monitoring data is critical for states and others to:  make watershed-
based decisions, target water quality criteria development, develop necessary standards and total
maximum daily loads  (TMDLs), and accurately and consistently portray conditions and trends.
To support these efforts, the President's Budget proposes $20 million to  implement improved
state monitoring efforts that will:

•      Describe  the condition of aquatic resources  at  multiple  scales  using scientifically
       defensible methods that are statistically valid and compatible;
•      Apply predictive tools to target waters that need more intensive monitoring;
•      Implement  data  management systems to  facilitate  exchange and  use   of  data of
       documented quality;
•      Determine site-specific water quality impacts, appropriate protection levels and cost-
       effective management actions;
•      Monitor performance to  determine  effectiveness of management actions  and support
       adaptive management, if needed; and
•      Utilize monitoring councils/partnerships to improve collaboration among entities
       collection, analysis, and use of monitoring data and information.

       This approach will result in social  costs  savings by maximizing  the efficiency of
monitoring and assessment resources and, more importantly, by ensuring that resources invested
in environmental  protection  activities  are  directed  most  efficiently   and  are achieving
performance objectives.

       Concentrated Animal Feeding Operations and Storm Water:  As  evidenced by  recent
newspaper articles, withdrawal petitions, and the permit backlog, some States are struggling with
implementation of their NPDES  permitting programs.  In addition, the  universe of facilities is
increasing  due  to new program requirements  to permit concentrated animal feeding operations
(CAFOs)  and additional sources of storm water.   Without timely issuance  of high  quality
permits, necessary  improvements in water  quality  will be delayed.  To help  States with this
workload, we are requesting an increase  of $5 million for Section 106 Grants. This increase
would be used  by States to support implementation of NPDES CAFO programs, which should
result hi pollutant reductions of over 2 billion pounds annually,9 and to support State issuance of
storm  water permits,  resulting in long term annual reductions of approximately  100 billion
pounds of sediment.10
9 United States Environmental Protection Agency Office of Water, (January 2001). Development Document for the Proposed
Revisions to the National Pollutant Discharge Elimination System Regulation and the Effluent Guidelines for Concentrated
Animal Feeding Operations. (EPA-821-R-01-003). Washington, D.C. [On-line] Available: http://epa.gov/waterscience/guide/
10 U.S. EPA, Office of Water. "Economic Analysis of the Final Phase II Storm Water Rule," EPA 833-R-99-002, October 1999.

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       Water Quality Trading:   Water quality trading  is  a watershed  approach  based on
voluntary partnerships at the local level. It capitalizes on economies of scale and control cost
differences among sources, by allowing one source to meet  its regulatory obligation by using
pollutant reductions created by another  source that has lower pollution control costs. Trading
provides incentives for  voluntary pollutant reductions, especially from sources that  are  not
regulated.   It  encourages early reductions and more  cost  effective programs  for restoring
impaired waters.  Trading also provides  incentives for innovative solutions to  complex and
diverse water quality problems across the nation.

       A current example  of a successful trading effort between point sources can be found on
Long  Island  Sound,  where nitrogen  trading  among  publicly  owned treatment  works  hi
Connecticut is expected to save over $200 million in control costs.  A March 2003, report by the
World Resources  Institute, states  that market mechanisms such as nutrient trading provide the
greatest overall environmental benefits and a cost-effective strategy for reducing the Mississippi
River Basin's contribution to the  Dead Zone in the Gulf of Mexico.  The report highlights the
fact that trading provides a real  opportunity  for farmers to play a  role in reducing nutrient
pollution.11

       In FY 2005, we plan to redirect $4 million for this effort, to be  set-aside within the
Targeted Watershed Grants.

       Water Efficiency:  At the end of 2002, nearly half the continental U.S. was in drought.12
In addition to reduced rainfall, most of our water systems  also face a  growing population and a
growing economy.   In  the future, our waters  are  going to be  even more stretched across
competing demands.  The Agency is committed to helping States and local governments address
a multi-billion dollar gap between water and wastewater infrastructure needs  and available
capital financing over the next 20 years.

       One way to reduce national water and wastewater infrastructure needs is by reducing
water demand and wastewater flows, allowing for deferral or downsizing of capital projects.  In
addition to reduced infrastructure needs, less water demand may result hi many  environmental
benefits  including maintaining  stream flows,  protecting aquatic habitats,  avoiding overdrawn
aquifers, conserving sources of supply, and mitigating drought effects.  In  anticipation of these
benefits, we are proposing to develop and implement a water efficiency market enhancement
program that would promote recognition of water-efficient products based on  the  highly
successful Energy Star Program.  The Budget includes nearly $1 million for this new program.

Surface Water Protection & Drinking Water Programs

       Sustainable  Infrastructure:    Closing the infrastructure  gap  requires  actions  and
innovations to  reduce the demand for infrastructure, including better management, conservation
(or smart water use), and intergovernmental cooperation through the watershed approach.

U.S. EPA, Office of Water. "Construction and Development Effluent Guideline Proposed Rule," Federal Register Notice (June
24,2002). Accessed December 29, 2003. Available on the internet at:
http:/^•^vwsv.epa.govAvaterscience/g^ide/coHstructio^•''ru]e.htiTll
1' Greenhalgh, Suzie and Amanda Sauer. 2003. "Awakening the 'Dead Zone': An Investment for Agriculture, Water Quality, and
Climate Change." World Resources Institute.
12 The Drought Monitor; National Drought Mitigation Center; Website: www.drought.unl.edu/dm/about.html
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       The  touchstone of a  long-term strategy  to  manage and maintain  the Nation's
infrastructure is fiscal sustainabiliry.  An important component of this strategy is promoting
sustainable water and wastewater treatment systems.   This includes ensuring the technical,
financial, and managerial capacity of water and wastewater systems; helping service providers
avoid future gaps and expanding watershed approaches that engage stakeholders in broad-based
action-oriented partnerships to identify efficient and effective local infrastructure solutions by
adopting sustainable management systems to improve efficiency and economies of scale; and
reducing the average cost of service.  Through a $2.5 million sustainable infrastructure initiative,
we will work in partnership with States, the utility industry,  and other stakeholders to enhance
the operating efficiencies of water and wastewater systems. These efficiencies can help systems
make the  infrastructure investments needed to meet growing consumer demand, and  help to
sustain the human health and environmental gains we have achieved over the past three decades.

       In  FY 2005,  the Agency will continue to coordinate  with  States and Tribes providing
guidance and assistance hi the development of generic and specific Pesticide Management Plans
hi order to protect our ground water resources.  EPA will coordinate pesticide water issues and
assist our  partners in identifying and implementing effective ground water protection programs
through these plans.  The Agency will continue  to support  efforts on identifying  the  adverse
effects  of pesticides  hi ground and surface water at the State, Tribal and Regional  levels.
Additionally, we will continue to  assist States  and  Tribes hi identifying,  developing and
implementing measures to prevent or reduce water contamination. Key to this effort will be
tailoring preventive and recovery measures to localities and specific pesticides.

Research

       In  FY 2005, EPA's drinking water research program will continue to conduct research to
reduce the uncertainties of risk associated with exposure to microbial contaminants hi drinking
water and improve analytical methods  to control risks posed by drinking water contamination.
The  drinking  water  research program  will continue  to focus on chemical and microbial
contaminants on current and future CCLs. Significant data gaps still exist on the occurrence of
harmful microbes hi  source and distribution system water, linkages between water exposure and
infection,  and the effectiveness  of candidate treatment  technologies to  remove and inactivate
these contaminants.   Efforts  will  also  continue  to  support  arsenic-specific  research and
development of more cost-effective treatment technologies for the removal of arsenic from small
community drinking  water systems.

       EPA is  working to develop biological and landscape  indicators of ecosystem condition,
sources of impairment, stressor response/fate and transport models, and options for managing
stressors and their sources.  Through the development of a framework  for diagnosing  adverse
effects of chemical pollutants hi surface waters, EPA will be able to evaluate the risks posed by
chemicals that persist in the environment and accumulate in the food chain, threatening wildlife
and potentially human health. The Agency will also develop and evaluate more cost-effective
technologies and approaches for managing sediments,  and  evaluate management options for
watershed restoration of TMDLs for other significant stressors  (e.g., nutrients, pathogens and
toxic compounds).   Finally, research to address uncertainties associated with  determining and
reducing the risks to  human health of the production and application of treated wastewater sludge


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(biosolids) to land for use as fertilizers and soil conditioners is emerging as an area of renewed
importance for the Agency.

       Another area of research will focus on growing evidence of the risk of infectious diseases
resulting from exposure to microbes hi recreational waters.  Exposure to these diseases is of
particular concern after major rainfall events that cause discharges from both point .and non-point
sources.  These events may pose risks to human and ecological health through the uncontrolled
release of pathogenic bacteria,  protozoans, and viruses, as well as a number of potentially toxic,
bioaccumulative contaminants.  EPA will develop and validate effective watershed management
strategies and tools for controlling  wet weather flows (WWFs),  which  will enable EPA to
provide states with consistent monitoring methods, standardized indicators of contamination, and
standardized definitions of what constitutes a risk to public health.

EXTERNAL FACTORS

       EPA's strategies for  achieving clean and safe water depend on substantial contributions
and investments by many public and private entities.

       States are primary partners hi implementation of both clean water and safe drinking water
programs. Many states, however, are facing budget problems and even deficits. EPA recognizes
that state budget shortfalls are an external factor that may limit progress toward clean and safe
water goals.

       Consistent  with the federal  government's  unique  trust  responsibility to federally
recognized tribes,  EPA implements programs  in Indian country, helps build  tribal capacity to
administer clean and safe water programs, and works with authorized tribes as co-regulators.
Unlike states,  many tribes are still  developing programs to administer clean and  safe water
programs.

       Local governments play a critical role  in implementing clean and safe water programs,
and the continued participation of local government in these programs is critical to cleaner, safer
water. Municipalities and other local entities have proven to be strong partners with states and
the federal government in the financing of wastewater treatment and drinking water systems, and
continued partnership in  financing these systems is  essential  to meeting water  goals.
Municipalities are taking on  additional responsibilities for addressing storm water and combined
sewer overflows and they are  adopting sustainable  management practices to  extend the useful
lives  of  their wastewater infrastructure.  Approximately  78 percent  of wastewater treatment
plants are operated by small communities, thousands of which have  had past operational
difficulties.13  Continued  assistance to these small treatment plants,  through the Wastewater
Operator Training Program,  is important to  keeping the nation's waters clean.  In the case of the
drinking  water program,  effective local management of drinking water systems, including
protection of source waters, is essential to  maintaining high rates of compliance with drinking
water standards.  Ninety-five percent of the 160,000 or more public water systems responsible
for meeting drinking water safety standards are small systems that face challenges in sustaining
13 U.S. Environmental Protection Agency, Office of Enforcement and Compliance Assistance; Permit Compliance System; Web-
site: www.epa.gov/oeca/planning/data/water/pcssys.html

                                          11-10

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their capacity to provide safe drinking water.14  Strong partnerships with local governments are
critical to achieving clean and safe water goals.

       Several  key components  of the national  water program, including nonpoint  source
control, source  water protection, and watershed management, as well as the core water quality
and drinking water standards, monitoring, TMDLs  and NPDES permitting programs require
broad partnerships among many federal, state, and local agencies.  Over the next several years,
building partnerships,  particularly  with the agricultural community (such as USDA,  state
agricultural agencies, and local conservation districts) is a top priority for meeting clean water
goals.  We must continue to provide EPA water quality data and work with USDA to help target
runoff control programs'resources.

       States lead the effort in water quality monitoring.  However,  EPA relies on many other
agencies to provide monitoring data to measure progress toward its goal of clean and safe water,
such as the U.S Geological Survey, which maintains water monitoring stations throughout the
nation, and NOAA, which provides information on coastal waters.  EPA relies on the continued
collection of data by these agencies.

       Additionally, all of the EPA's coastal and oceans activities are carried out in partnership
with other federal agencies, and, in some cases, international, state, local and private entities as
well.  EPA relies on its work with the Department of Defense, Coast Guard, Alaska and other
states, and a number of  cruise ship and environmental and non-governmental organizations
regarding regulatory and  non-regulatory approaches to managing wastewater discharges  from
vessels.  Meeting ocean and coastal goals will also depend on the extent to which the growth hi
coastal areas is  directed hi ways that minimize effects on water quality.

       West Nile Virus cases increased dramatically  in 2002, spreading across 38 states and the
District of Columbia.  In areas with new West Nile virus detections,  EPA regional offices have
reported heightened concern about the pesticides used for mosquito control and the adverse
affect it might have  in contaminating groundwater.   Pesticides are applied to areas where
groundwater is  prevalent due to the fact that mosquitoes need stagnant or standing water to lay
their eggs. The  possibility of the West Nile Virus expanding into new areas of the United States
in the future will require the application of more pesticides onto the new breeding areas.
14 U.S. Environmental Protection Agency Safe Drinking Water Information System (SDWIS/FED),



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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                                Clean and Safe Water

OBJECTIVE; Protect Human Health

      Protect human health by reducing exposure to contaminants in drinking water (including
protecting source waters), in fish and shellfish, and in recreational waters.

                                 Resource Summary
                                (Dollars in Thousands)

Protect Human Health
Environmental Program & Management
Science & Technology
Building & Facilities
State and Tribal Assistance Grants
Inspector General
Total Workyears
FY2003
Actuals
$1,259,787.6
$159,996.8
$18,362.0
$1,361.4
$1,085,448.9
$6,871.9
859.7
FY2004
Pres. Bud.
$1,192,187.1
$161,414.6
$27,926.9
$1,480.2
$1,008,640.4
$7,701.4
916.8
FY2005
Pres. Bud.
$1,170,339.6
$164,157..!
$6,709.8
$1,595.3
$1,004,412.2
$7,594.4
910.9
FY 2005 Req. v.
FY 2004 Pres Bud
($21,847.5)
$2,742.5
($21,217.1)
$115.1
($4,228.2)
($107.0)
-5.8
                                  Program Project
                                (Dollars in Thousands)

Children and other Sensitive Populations
Categorical Grant: Public Water System
Supervision (PWSS)
Categorical Grant: Underground
Injection Control (UIC)
Categorical Grant: Pesticides Program
Implementation
Categorical Grant: Beaches Protection
Beach / Fish Programs
Drinking Water Programs
Infrastructure Assistance: Drinking
Water SRF
Infrastructui ; Assistance: Puerto Rico
Pesticides: Field Programs
Categorical Grant: Water Quality
Cooperative Agreements
Congressionally Mandated Projects
International Capacity Building
FY2003
Actuals
$246.6
$92,694.2
$10,465.7
$4,672.6
$7,473.3
$3,197.3
$86,119.7
$866,607.7
$0.0
$2,001.2
$0.0
$111,719.6
$3,419.4
FY2004
Pres. Bud.
$135.0
$105,100.0
$11,000.0
$4,564.0
$10,000.0
$3,689.5
$99,085.5
$850,000.0
$8,000.0
$2,510.8
$0.0
$0.0
$1,611.2
FY2005
Pres. Bud.
$77.2
$105,100.0
$11,000.0
$4,433.0
$10,000.0
$3,237.6
$100,947.6
$850,000.0
$4,000.0
$2,482.7
$750.0
$0.0
$2,181.0
FY 2005 Req. v.
FY 2004 Pres Bud
($57.8)
$0.0
$0.0
($131.0)
$0.0
. ($451.9)
$1,862.1 i
$0.0
($4,000.0)
($28.1)
$750.0
$0.0
$569.8
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Children and other Sensitive Populations
Categorical Grant: Homeland Security
Homeland Security: Critical
Infrastructure Protection
Administrative Projects
TOTAL
FY2003
Actuals
$246.6
$4,508.5
$14,186.4
$52,475.4
$1,259,787.6
FY2004
Pres. Bud.
$135.0
$5,000.0
$27,389.1
$64,102.0
$1,192,187.1
FY2005
Pres. Bud.
$77.2
$5,000.0
$6,125.8
$65,004.7
$1,170,339.6
FY 2005 Req. v.
FY 2004 Pres Bud
($57.8)
$0.0
($21,263.3)
$902.7
($21,847.5)
FY 2005 REQUEST

Results to be Achieved under this Objective

       Protecting and Improving Drinking Water: Safe drinking water and clean surface waters
are critical to protecting human health.  Over 260 million Americans rely on the safety of tap
water provided by water systems that are subject to national drinking water standards.15  EPA's
strategy for helping systems provide safe drinking water over the next several years focuses on
five major elements: (1) developing or revising drinking water standards; (2) supporting states,
tribes, and water systems in implementing standards; (3) promoting sustainable management of
drinking  water infrastructure; (4) protecting sources of drinking water from contamination; and
(5) providing  information, tools and assistance to drinking water and wastewater utilities to
protect critical water infrastructure from terrorist and other intentional acts.  Collectively, these
and other interrelated elements of the national safe drinking water program form a balanced,
integrated framework that comprise a multiple barrier approach to protecting public health from
unsafe drinking water.  Under this approach, by the end of FY 2005 the Agency and its partners
will have ensured that 94 percent of the population served by community water systems receives
drinking water that meets all health based standards with compliance dates of December 2001 or
earlier. Also as a result of these efforts, EPA expects that 75  percent of the population served by
community water systems will receive drinking water that meets the next generation of chemical
and microbial drinking water standards with compliance dates of January 2002 or later.

       Protecting human health also entails the defense of the nation's water infrastructure in the
event of a terrorist attack.  Water systems need to contend with three primary security concerns,
physical disruption, contamination with chemical, biological and radiological agents, and cyber
intrusion.  In FY 2005, EPA will provide limited tools and assistance to the water sector that
address vulnerabilities  identified in their completed assessments, including the identification of
the most up-to-date security enhancements, threat and contaminant information sharing, and
emergency response training.

       Fish/Beach Programs:  By 2008, the quality of water and sediments will be unproved to
allow increased consumption offish in not less than 3 percent of the water miles/acres identified
by states or tribes  as having a fish consumption advisory hi  2002.  In 2002, over 400,000 river
miles and  over 11 million lake acres were identified by states or tribes as having fish with
15 U.S. Environmental Protection Agency Safe Drinking Water Information System (SDWIS/FED),
http://www.epa.gov/safewater/data/getdata.html
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chemical contamination  levels resulting in an advisory of potential human health risk from
consumption.16

       Pesticide Management:  The Agency remains committed to working with the States and
Tribes to continue implementation  of the Groundwater Strategy.   This includes providing
assistance in the development of Pesticide Management Plans (PMP) for both generic aspects of
pesticide use as well as more specific plans  for a particular pesticide.  The plans provide a
roadmap to managing pesticides from contaminating ground water resources through preventive
and corrective measures.  The Agency also reviews pesticides for potential adverse impacts to
both ground and surface water resources, and takes action to restrict use as warranted.

       International Capacity:  EPA's  international  capacity programs provide  developing
countries with  the  tools and  training necessary to achieve  long-term  environmental change.
These programs  complement technical  assistance EPA and other organizations  provide by
ensuring that the recipient  country  or region is able to sustain  and replicate environmental
improvements.  They  also help protect  human health and  the  environment hi the U.S. by
introducing innovative practices for environmental management.

Drinking Water Programs, Drinking Water State Revolving Fund, Puerto  Rico, and
Categorical Grants:  Public Water System Supervision, Underground Injection Control

       Develop Drinking Water Standards: The Safe Drinking Water  Act directs  EPA to set
legal  limits on  levels  of contaminants hi our drinking  water  supplies.  Over the past 30 years,
EPA  has established national protective standards for  91 contaminants  (see U.S. Environmental
Protection Agency List of Contaminants and their MCLs, http://www.epa.gov/safewater/mcl.htmlitoicls).
In FY 2005, the Agency will promulgate the Long-Term 2 Enhanced Surface Water Treatment
Rule  (LT2)  and Stage 2  Disinfectant and Disinfection Byproducts Rule (Stage 2). Until states
assume primacy (primary enforcement authority)  for  these two rules,  EPA will, as required,
manage the  collection and analysis for risk-based monitoring by large drinking water systems.
EPA also will continue to assess the need for new or revised  drinking water standards based on
available data on health effects, occurrence, risks of exposure, analytical  (detection) methods, as
well  as  information  on technologies to prevent, detect, or  remove  specific contaminants.
Additionally, EPA's  Drinking  Water  Laboratory Certification Program evaluates whether
Agency, state, and privately-owned laboratories are analyzing drinking water samples accurately
using approved laboratory methods and procedures, and whether they are properly implementing
quality assurance plans.

       As required  under the Safe Drinking Water Act, if there are adequate scientific data and
risk  assessment  information,  EPA  must  determine  whether  to  regulate  an  unregulated
contaminant on the Contaminant Candidate List (CCL), and must ascertain, through the Six-Year
Review of existing regulations, whether a revision to an existing standard is warranted. In 2003,
the Agency announced hi the Federal Register that it had completed its review of the 69 drinking
water regulations in place as of 1997 and had decided not to revise 68 of these regulations.17 In
16 US EPA. Office of Water. 2003. Factsheet, "Update: National Listing of Fish and Wildlife Advisories," EPA-823-F-03-003,
May 23, 2003.
17 U.S. Environmental Protection Agency. "National Primary Drinking Water Regulations; Announcement of Completion of
EPA's Review of Existing Drinking Water Standards," Federal Register v68, No 138. 18 July 2003.
http://www.epa.gov/fedrgstr/EPA-WATER/2003/July/Day-18/wl8152.pdf

                                          11-14

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FY 2005, the Agency will continue its analysis of National Primary Drinking Water Regulations
for the second Six-Year  Review, and develop proposed revisions to the Total Coliform Rule
(TCR), as well as consider additional protections for drinking water distribution systems. EPA
will continue to review and evaluate scientific and occurrence data on contaminants listed on the
second CCL, issued in 2004, to make regulatory determinations. If necessary, EPA is prepared
to act in advance of the next regulatory determination cycle to address an urgent threat to human
health. In addition to making regulatory decisions, the Agency will work to develop the third
CCL.

       A key to the Agency's approach to assessing the need for new or revised standards is
ensuring EPA has the most recent scientific research, risk assessment information and
occurrence data for potentially high-risk contaminants. Some specific activities to accomplish
this are: 1) tracking research conducted on contaminants, 2) establishing a systematic approach
for the identification of those contaminants that pose the highest risk to human health, 3)
ensuring that monitoring data on such contaminants are reliable (QA/QC), 4) developing a full
range of analytical methods to determine the occurrence of these contaminants in source waters,
5) enhancing the tools to estimate the cost and benefits of drinking water regulations, and 6)
continuing to expand EPA's initiative to optimize treatment techniques and treatment
technologies as an effective alternative to regulations. To help maintain the strong scientific
underpinnings of its regulatory decisions, the Agency will implement an on-line system in 2005
that will include a wide range of information gathered from both U.S. and international drinking
water programs. This system will strengthen EPA's efforts to screen and evaluate over 100,000
chemical and microbial contaminants for possible listing on the third CCL, and directly reflects
recommendations to the Agency from the National Academy of Science's National Research
Council (NRC) and the National Drinking Water Advisory Council (NDWAC).

       Finally,  where the source of the contamination affects surface water, the Agency  has
committed to identifying critical  drinking water contaminants of concern in surface waters and
issuing new or revised criteria using the authorities of section 304(a) of the Clean Water Act to
protect public health.  For example, EPA will use the section 304(a) authority to establish criteria
for Cryptosporidium,  a widespread  microbial  contaminant  that  is resistant  to  chlorine
disinfection. These criteria, once adopted by states and authorized tribes, will form the basis for
regulatory limits  on discharges  of the contaminants to surface  waters and guide programs
designed to reduce runoff of pollutants into our lakes, rivers and streams.

       Implement Drinking Water Regulations: EPA works closely with states, tribes, and water
systems to implement multiple program barriers that protect public health from contaminants in
water supplies.  Special  emphasis will be  focused on helping states identify and target their
efforts to those systems not providing their customers with safe drinking water. In FY 2005 and
future years,  EPA's  implementation  support  for  primacy states and  tribes  will  become
increasingly important given the  growing number of systems that will need to comply with new,
more flexible drinking water regulations that can be tailored to the needs of individual utilities.
In FY 2005, EPA will continue to provide guidance, training and technical assistance on the
implementation of drinking  water regulations to states,  tribes and  systems; ensure  proper
certification of water system operators;  develop new, easily accessible tools (e.g. Web-based) to
assist  states and  water systems;  ensure  on-site reviews of the operating condition and
management of public  water systems as required  by regulations; and promote consumer
awareness of the safety of drinking water supplies.  The Agency estimates that as a result of its

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implementation support for state and tribal drinking water programs, 93 percent of the population
served by community water systems, and 90 percent of the population served  by community
water systems in Indian Country, will receive drinking water that meets all  applicable health-
based standards by the end of FY 2005.
                    •^      ;  • ^Percentage of the Population served by   ,  :
                     / / .-Community Water Systems Providing Drinking Water
                     / »;   that Meets; :AH 'Applicable Health-Based Standards
                          FY 2003
?Y 2004
F.Y
            Source: FY 2003 national data from U.S. EPA's Safe Drinking Water Information System (SDWIS). FY2004and
            FY2005 data are national goals.

       Consistent with the Agency's longstanding implementation support for drinking water
systems, in FY 2005 EPA will continue to provide training and assistance to systems in many
areas. The Agency  will focus its training and assistance on the use of cost-effective treatment
technologies,  proper  waste  disposal,  and compliance  with  high  priority  contaminant
requirements,  including  initial  monitoring  under the revised  arsenic rule, and  risk-based
monitoring under the LT2 and Stage 2. In FY 2005, the Agency will continue to support small
systems  efforts  to  optimize their  treatment technology under the Area-Wide Optimization
Program (AWOP).  AWOP is a highly successful technical assistance and training program that
enhances the ability of small systems to  meet existing and future microbial, disinfectant and
disinfection byproducts (M-DBP) standards.  By the end of 2003, 20 states were implementing
AWOP and this initiative is continuing to expand throughout the country.18

       High quality information is  needed to support the effective  implementation of drinking
water programs. The Safe Drinking Water Information System (SDWIS) serves as the primary
source of national information on compliance with all SDWA requirements, and is a critical
database for program management.  In FY 2005, EPA will continue its work to update SDWIS to
ensure that new drinking water program requirements are incorporated into the data system to
help states and authorized Tribes monitor and report drinking water data..
  U.S. Environmental Protection Agency Office of Water. Implementing AWOPs through the Capacity Development and
DWSRFPrograms (EPA 816-F-03-019). July 2003. http://www.epa.gov/safewater/smallsys/pdfs/awop-capdev-dwsrf.pdf.
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       EPA's efforts related to the President's Management Agenda,  specifically the focus on
results oriented e-government, will build on pilot projects with states utilization of the central
data exchange  (CDX).  The CDX is  a mechanism by which states electronically report end-to-
end drinking water data, and it has  the consequent benefit  of simplifying data exchange and
reducing transaction costs. EPA  also will continue  its work with States  to improve data
completeness,  accuracy, timeliness, and consistency through:  1)  training on data entry,  error
correction, and regulatory reporting; 2) conducting data verifications and  analyses; and 3)
implementing quality assurance and quality control procedures to identify missing, incomplete or
conflicting data under the data reliability action plan.

       Support Sustainable Drinking Water Infrastructure:  Currently EPA utilizes a variety of
approaches to  help  drinking  water systems  sustain their technical, financial and managerial
capacity to provide  safe drinking water, including tool development, technical assistance and
training. Providing drinking water that meets safe standards often requires an investment hi the
construction  or maintenance  of  drinking water  infrastructure.  The  Drinking Water  State
Revolving Fund (DWSRF) program,  described in a May 2003 Report to Congress, has made
available  $6.4 billion  to  finance  more than  3,000  infrastructure  improvement  projects
nationwide.19   In FY 2005, the DWSRF program will provide several hundred more loans to
public water systems for infrastructure improvement projects.   In response to the Program
Assessment Rating Tool (PART) reevaluation. the Agency will continue to work on revising its
measures to better demonstrate the impact water treatment facility improvements have on public
health and will develop a long-term outcome efficiency measure.

      Even with affordable, flexible financial assistance through the DWSRF, however,  the
Agency's September 2002 Clean Water  and Drinking Water Infrastructure "Gap" Analysis
projects a multi-billion dollar gap in capital infrastructure financing over the next 20 years.20  To
help  sates and municipalities  address this gap, the  Agency  will  implement in  FY 2005 a
Sustainable Infrastructure Leadership initiative  in  partnership with drinking water utilities.
Through this initiative, EPA and its partners will identify leaders hi the utility industry who have
established best practices hi drinking water asset  management, innovations, and efficiency, and
who are interested in employing watershed-based approaches to managing water resources.  EPA
also will work closely  with  states,  utilities, and other stakeholders to develop a strategy to
facilitate the  voluntary adoption of these best practices by 800 utilities, each  serving 50,000 or
more consumers.  The initiative will support sustainable drinking water utilities that are able to
maximize  the  value  of safe drinking water  by improving system  performance at the lowest
possible cost.

       Targeting a specific system, Puerto Rico's inadequate drinking water infrastructure has
created a significant daily health risk to consumers.  Less than 30 percent  of the population
receives drinking water that meets  all health-based  standards.21   Puerto Rico's  compliance
problem is a major challenge in the  national effort to ensure that 94 percent of the population
served  by community  water  systems  receives  drinking water  that meets  all  health-based
19 U.S. Environmental Protection Agency Office of Water. The Drinking Water State Revolving Fund Program: Financing
America's Drinking Water from the Source to the Tap - A Report to Congress (EPA 918-R-03-009). May 2003.
http://www.epa.gov/safewater/dwsrr/pdfs/dwsrf_congressreport-main.pdf
20 U.S. Environmental Protection Agency. 2002. The Clean Water and Drinking Water Infrastructure Gap Analysis. Washington,
DC: Government Printing Office.
21 U.S. Environmental Protection Agency Safe Drinking Water Information System (SDWIS/FED),
http://www.epa.gov/safewater/data/getdata.html

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standards by FY 2008. To improve the public health protection in Puerto Rico, the Agency will
support the first phase of the design of necessary infrastructure improvements.  When all
upgrades are complete, EPA estimates that about  1.5 million people will benefit from safer,
cleaner drinking water22  and that  risks of cancer, and gastroenteritis  and other waterborne
diseases will be reduced.

       EPA will work with  other federal agencies  to  develop a  coordinated approach to
improving  Indian Tribes' access to safe drinking water.  At the  2002  World Summit in
Johannesburg, the U.S. committed itself to the goal of reducing the number of people lacking
access to safe drinking water by 50 percent by 2015.23 In FY 2005, EPA will contribute to this
goal through its ongoing  financial support for infrastructure improvement projects at  drinking
water facilities in Indian country and Alaskan native villages.  Other federal agencies, such as the
Department of Interior (DOI), the U.S. Department of Agriculture (USDA), and the Department
of Health and Human Services (DHHS), also  play key roles in addressing this problem.  As a
result, by the end of FY  2005 EPA and other federal agencies will  have developed  an inter-
agency strategy that identifies how each agency will contribute to the Johannesburg commitment
to increase  tribes' access to safe drinking water.

      Protect Source Water Contamination:   There is growing recognition that ensuring the
quality of  surface and groundwater sources of drinking water is a critical  element of public
health protection.  In FY  2005, EPA will continue to  support state and local efforts to protect
source water through the identification of actual and potential sources of contamination. By the
end  of FY 2005, the Agency expects that all EPA-approved state  source water assessment
programs will have completed high-quality baseline assessments for 52,000 community water
systems nationwide.

       States  already have completed  thousands of  assessments  and are  working  with
community water systems to take voluntary measures to prevent, reduce or eliminate threats of
contamination to source water areas. EPA will continue to support these source water protection
efforts by providing training, technical assistance, and technology transfer capabilities to states
and localities; and by facilitating the adoption of geographic information system (GIS) databases
to support local decision-making.  The Agency will work  with national, state and  local
stakeholder organizations  to manage any significant sources of contamination identified in the
source water assessments through broad-based efforts. EPA will continue to work with  other
Federal programs to  help states and localities update source water assessments and manage
sources of contamination.  By the end of FY 2005, the Agency anticipates  that states and
communities will have minimized the risk of contamination in 20 percent of source water areas
for community water systems by substantially implementing voluntary source water protection
strategies.24

        State water quality standards play an important role in protecting the Nation's drinking
water sources. The Agency's 2003  Strategic Plan emphasizes continued use of Clean Water Act
22 U.S. Environmental Protection Agency Safe Drinking Water Information System (SDWIS/FED),
http://www.epa.gov/safewater/data/getdata.html
23 United Nations. 2002. Report of the World Summit on Sustainable Development: Johannesburg, South Africa, 26 August — 4
September, 2002. New York, NY: United Nations.
24 Note:  "Minimized risk" and "substantial implementation" of voluntary implementation of source water protection strategies,
will be determined at the state level by state source water protection programs.

                                          11-18

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authorities to protect waters that serve as public water supplies.  By the end of FY 2005, the
agency will complete, in coordination with states and tribes, a review of water quality standards
for surface waters that are source waters for public water supplies.

       Ensuring safe underground injection of waste materials is also a fundamental component of a
comprehensive source water protection program. Management or closure of the approximately
700,000 shallow injection wells (Class V) nationwide remains a top priority for the Agency's
Underground Injection Control (UIC) program.  Through the UIC categorical  grant program, EPA
and the states will, by the end of 2005, have completed a survey of Class V wells for 20 percent of
source water areas for community water systems and have closed or permitted 20 percent of all
motor vehicle waste disposal wells, one of two types of high-risk shallow  wells for which the
Agency has established additional protective measures.  In addition, EPA will continue working
with states and tribes to educate and assist underground injection control well operators of all
classes of UIC wells; working with industry and stakeholders to collect and evaluate data on
endangering Class  V wells;  and exploring best management practices for protecting ground
sources of drinking water.

Homeland Security: Critical Infrastructure Protection and Categorical Grant

       Defending the nation's critical infrastructure is essential to protecting the  public  hi the
event of  a terrorist attack  on the United States.   An attack on water  infrastructure  could
compromise the public health of a community. Under Homeland Security Presidential Directive
(HSPD) 7, EPA is assigned lead Federal responsibility to work with the water sector to ensure
that water utilities (drinking water and wastewater) are developing and implementing actions to
protect against physical, chemical/microbial,  and cyber attacks.  For the past three years, the
Agency has  provided  technical  and  financial assistance  to  water utilities,  especially the
approximately 9,000 drinking water systems subject to the requirements of the Public Health
Security and Bioterrorism Preparedness and Response Act of 2002 (Bioterrorism Act), to  assess
the vulnerabilities of their infrastructure and to prepare or revise their emergency response plans.

       In FY 2005, the Agency is focusing its resources on provisions of the Bioterrorism Act
that require EPA to:  (1) identify the chemical, biological, and radiological contaminants that
could be  intentionally introduced into drinking water systems,  and (2) review the means by
which terrorists could disrupt the supply of safe drinking water.  EPA will  support, prototypes,
field-testing, training, and guidance.   All of these activities will be targeted to  high priority
contaminants and threats identified through basic research. Examples of specific projects include
support for the water sector's development of voluntary best practices for security. This will
include methods  to select effective security  enhancements, innovative financing mechanisms,
and design standards that incorporate security measures in new construction, reconstruction, and
retrofitting.  In addition, the Agency will provide some funds to develop response protocols for
both water utilities and others that assist the water sector in an emergency, such  as local law
enforcement officials,  hazardous material teams,  health  care  providers,  environmental
laboratories, other infrastructure, and public health officials. This activity has the broader benefit
of improving the  efficacy and timeliness  of response to  all  emergencies (e.g.,  blackouts,
accidental contamination,  hurricanes,  and earthquakes) not just those related  to homeland
security.
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       EPA's efforts in water security will extend beyond drinking water systems to include
wastewater utilities.  EPA will continue in FY 2005 to provide some training and other critical
assistance tools to wastewater utilities. FY 2005 funding will also support the implementation of
information sharing tools and mechanisms  to  provide timely  information  on contaminant
properties, water treatment  effectiveness,  detection  technologies,  analytical  protocols, and
laboratory capabilities for use in responding to a water contamination event. This effort includes
the continued support for the  secure Information Sharing and Analysis Center (WaterlSAC) to
disseminate threat  and  incident information and to  serve as a clearinghouse  for  sensitive
information.   Water security categorical grants will continue to maintain the states' efforts in
coordinating their critical water infrastructure protection activities with other homeland security
responsibilities.

Beach/Fish Programs and Beaches Grants

      Safe Fish and Shellfish:  Some toxic contaminants that enter waterbodies can move up the
food chain and build up to levels that make fish unsafe to eat.  In 2002, states and tribes report
they issued  fish consumption advisories for about 15  percent of river miles and 33 percent of
lake acres.25  Shellfish also can accumulate disease-causing microorganisms and toxic algae.  In
1995,  shellfishing was  prohibited  hi  11  percent of the approximately 25  million acres that
support shellfishing.26 EPA is working with states, tribes, and other federal agencies to improve
water and sediment quality so all fish and shellfish are safe to eat and to protect the public from
consuming fish and shellfish that pose unacceptable health risks.  EPA is also working with these
groups and the shellfish industry to  evaluate the use of more modern techniques to measure fecal
contamination in shellfish growing waters.

      Fish Safe to Eat: Most fish consumption advisories today are issued because of unhealthy
levels of mercury in fish. Although small amounts of mercury are discharged to waters, most
mercury in fish originates from combustion sources,  such as  coal-fired  power  plants and
incinerators, which release it into the air.  The mercury  is then deposited by rainfall onto land
and water, where it is concentrated in waterbodies and moves up the food chain through fish to
people. EPA is working to reduce releases of mercury to the air through controls on combustion
sources. For example, EPA expects that by 2010, federal market-based and other  air regulatory
programs will reduce electric generating unit emissions of mercury by 22 tons from their 2000
level of 48 tons (see Goal 1 of this Strategy).
25 U.S. EPA. Office of Water. "2002 National Listing of Fish & Wildlife Advisories." Fact Sheet. EPA-823-F-005. Washington,
DC: EPA, May 2003. Available at hnp://www.epa.govvwaterscience/fish/advisorie .
26 Alexander, C.E. "Classified Shellfish Growing Waters," in NOAA. "State of the Coast Report."  Silver Spring, MD: NOAA,
1998.

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      Improving water and sediment quality is another key element of the strategy for making
more fish safe to eat. Implementation of Clean Water Act programs will improve water quality
by: establishing water quality baselines, identifying emerging contaminant problems, impaired
waters and sources of contaminants; developing total maximum daily loads and source controls
for impaired waters; reducing discharges from storm water systems, combined sewer overflows,
and other permitted facilities, and reducing runoff from nonpoint sources.

      These water quality programs rely on sound scientific information concerning individual
contaminants in  fish.   EPA recently  issued a criteria document under the Clean Water Act
identifying the safe levels of mercury in fish tissue and will help states  and tribes adopt the
criterion into water quality standards.  EPA expects that states and authorized tribes will adopt
the new mercury fish tissue criterion by 2008.  In 2000, EPA revised the methodology for
calculation of "human health criteria" for  contaminants found in surface waters.  This new
methodology reflects recent research on the health effects of contaminants and the potential for
contaminants in water to be concentrated in the food chain and pose a greater risk to people who
consume fish. EPA partially recalculated the criteria for 83 pollutants and will be revising these
criteria and additional criteria more completely over the next several years.

      EPA is also working to restore the quality of aquatic sediment in critical waterbodies, with
special emphasis in the Great Lakes under the Great Lakes Legacy Act.27 Toxic contaminants hi
sediment accumulate hi fish and wildlife to levels that pose health risks.   Through its National
Sediment Quality Survey28, EPA will continue  to  identify watersheds where  sediment
contamination is severe and widespread. Further studies of these watersheds will help determine
source control and remediation measures that are needed to reduce human health and ecological
risks resulting from contaminated sediment.
27 Great Lakes Legacy Act of 2002, Public Law 107-303, November 27, 2002.
28 U.S. EPA. Office of Water. "The Incidence and Severity of Sediment Contamination In Surface Waters of the United States.
Volume 1: National Sediment Quality Survey." 2nd.ed. Draft. EPA-823-R-01-01. Washington, DC: EPA, December 2001.
Available at http://www.epa.gov/waterscience/cs.

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      Another key element of EPA's strategy for increasing the number of waters where fish are
safe to eat is expanding the amount and type of information about fish safety and making this
information available to the public.
              EPA provides guidance to  states and tribes on monitoring and  fish sampling.
EPA also provides funding and technical training to help states and tribes assess fish safety in
more of their waters every year. The Agency expects that by 2008, the percentage of rivers and
lakes monitored to determine the need for fish advisories will continue to increase.

                    Percentage of Lake Acres and River Miles
                            Under Advisory, 1993-2002
       Source: US EPA, Office of Water. 2003. Update: National Listing of Fish and Wildlife Advisories: Fact Sheet.
       EPA-823-F-03-003. May 2003. Available at: http://www.epa.qov/waterscience/fish/advisories/factsheet.pdf.
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       EPA is also conducting an ongoing nationwide survey of contaminants in fish.  In FY
2004, the analyses on mercury, PCBs, organochlorine pesticides, and dioxins/furans/co-planer
PCBs will be completed and the statistical analyses of the analyzed samples will be conducted.
During FY 2005, EPA will analyze the findings of the survey and will make them available in
FY 2006 on the Agency's waterscience website (http://www.epa.gov/waterscience). In addition,
the Agency will identify emerging contaminants of public health and ecological concern in fish
(e.g., flame retardants, fuel additives) and initiate analyses from archived fish tissues of a
narrower list of contaminants that pose particular concern.

       A  key public information tool is the internet-based National Listing of Fish and Wildlife
Consumption Advisories29. This website allows states and tribes to enter their advisories and
provides the public with information about the location of advisories, the fish that are affected,
and the number of meals or amount of fish that a person can safely eat.  In addition, the listing
identifies  the method that  states use  to issue their advisories.  Over the years, EPA has urged
states to use a risk-based approach in issuing their advisories.  As shown in the following figure,
states are  increasing their use of EPA's risk-based guidance or a risk-based approach consistent
with EPA's guidance.  The Agency continues to track state methods of issuing advisories as an
indicator in the 2003 Strategic Plan.
                    States Using EPA's Risk-based Guidance
      TO
                                     Number of States
                           DMay-99 •May-00 •May-01 ^May-02
       Source: US EPA, Office of Water. 2003. Summary of Responses to the 2002 National Survey of Fish Advisory Programs. EPA-823-
       R-03-007. August 2003.
       Another tool is EPA's national advisory for mercury in fish.  This advisory provides
information to the public about the number of meals or amount offish that a person can eat from
waters that states or tribes have yet to assess.  EPA issued its first mercury advisory in January
29 U.S. EPA. Office of Water. "Fish Sampling and Analysis." Volume 1 of "Guidance for Assessing Chemical Contaminant Data
for Use in Fish Advisories. 3rd ed. EPA-823-B-00-007. Washington, DC: EPA, 2000. Available at http:
www.epa.gov/vvaterscieRce/Rshadvice/vohimel.

                                           11-23

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200130 and will revise it in FY 2004 by issuing a joint federal advisory with FDA.  This joint
advisory will help clarify the fish consumption advice both agencies provide to the public.  In FY
2005, EPA will work with public health agencies to develop and distribute outreach materials
and with the advertising industry to provide the fish consuming public with consistent, easily
understood information. EPA will strengthen its support to states in their monitoring of mercury
in fish.  Also in FY 2005, EPA will work with USGS and states to integrate fish tissue mercury
data into STORET making it accessible to all. This will support studies to enhance the mercury
advice by aligning it with the advisories for PCBs and other contaminants to reflect the most
current  science and to clarify  for the public the differences  in the  fish covered and the
consumption advice based on where and how these contaminants concentrate hi fish.

      Shellfish Safe to Eat: The safety of shellfish is managed through a partnership of the U.S.
Food and Drug Administration (FDA), the Interstate Shellfish Sanitation Conference (ISSC), and
coastal states.  States monitor shellfishing waters and restrict harvesting if shellfish taken from
the waters are considered unsafe.

      EPA is  working with states, FDA, ISSC,  and the National Oceanic and Atmospheric
Administration (NOAA) to  increase the percentage  of shellfishing acres  where harvesting  is
permitted from the estimated FY 1995 level of 77 percent to 85 percent in FY 2008. In FY 2005,
EPA will partner with federal,  state, and other entities to improve  water quality criteria for
shellfish growing waters using  indicators that  are better, more protective indicators of fecal
contamination and the sources of the contamination.

        Over the past  several years, the ISSC, working  with states  and federal agencies, has
developed a new information system that uses state monitoring data to pinpoint areas where
shellfishing has been restricted. Using this information system, EPA and states will more readily
be able to identify possible sources of pollutants restricting the use of shellfishing waters. This
information can be used to strengthen water pollution control activities, including development
of watershed plans, implementation of National Estuary Program plans, issuance or reissuance of
NPDES permits to point sources, enforcement of existing NPDES permits, and implementation
of controls  over diffuse sources  of polluted runoff.  EPA also supports these actions  by
identifying and evaluating technology-based  controls that reduce the discharge of pollutants
close to shellfish beds and direct the discharged pollutants away from shellfish beds.

         Safe Swimming Waters:  Recreational waters, especially beaches in coastal areas and
the Great Lakes, provide outstanding recreational opportunities for many Americans. Swimming
in some recreational waters, however, can pose a serious risk of illness as a result of exposure to
microbial pathogens.   In  some cases, these pathogens can  be traced  to sources such as
wastewater treatment plants, malfunctioning septic  systems, and discharges from storm water
systems. Swimming advisories and beach closures to protect the public from harmful levels of
pathogens can have significant  economic impacts.   Since 1997, EPA has sent out an  annual
questionnaire to states, tribes, local governments and  other agencies that maintain swimming
beaches. Over the years participation has steadily increased even though participation is entirely
voluntary.  In 1997, 159 agencies reported on 1,021 beaches. In FY 2003 the number had grown
to 227 agencies reporting on 2,823 beaches.  In addition,  EPA has improved the questionnaire
30 U.S. EPA. Office of Water. Federal Advisories. Washington, DC: EPA. Accessed January 2001. Available only on the
internet at http://map i .epa.gov/htmi/federaladv

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enabling the Agency to track the percentage of days beaches are open during a particular beach's
recreational season and determine if the FY 2008 strategic target that monitored coastal and
Great Lakes beaches are open and safe for swimming 96 percent of the days during the beach
season is attained. In FY 2001, beaches reporting were open 94 percent of the days during the
beach season and in FY 2002, the percentage increased to 95 percent.

        EPA  is implementing a  three-part strategy to protect the quality of the Nation's
recreational waters.  The  Agency will  work to protect recreational water generally, control
combined sewer overflows, and protect  the quality of waters  adjacent to beaches used by the
public for recreation along the coasts and Great Lakes.

       Protect Recreational Waters: The first element of the strategy is broadly focused on all
recreational waters. To protect and restore these waters, EPA works with state, tribal, and local
governments to implement the  core  programs  of the Clean Water  Act.    For example,
development and implementation of total maximum daily loads (TMDLs) will generally benefit
recreational waters that are impaired. In FY 2005, EPA will expand the tools to estimate benefits
for recreation water protection and support states, tribes and local entities as they evaluate policy
options for reducing beach closures through cost-effectiveness analysis and better estimates of
economic impacts.  The continuing implementation of the discharge permit program, urban
storm water controls, and nonpoint pollution control programs will also reduce pollution to
recreational waters, helping to ensure that the Agency meets its recreational water  targets by
2008.  EPA also supports pollution control programs by developing test protocols that can
distinguish human from other fecal contamination and by identifying and evaluating technology-
based controls that reduce the discharge of pathogens.

       Control  Combined  Sewer Overflows:   Full  implementation of controls for  overflows
from combined storm and  sanitary sewers,  or "CSOs," is  another key step  in  protecting
recreational waters.   During  wet weather,  these overflows may release untreated  sewage
containing high levels of pathogens. CSOs, which occur in about 770 communities around the
country, can have a significant impact on the quality of recreational waters.  EPA, states, and
local governments are making steady progress toward  the reduction of overflows  under the
"CSO Policy."  Most  communities with CSOs have now implemented basic control measures.
Approximately  275 communities  have  submitted long-term control plans to their NPDES
authority.   Approximately  180 have received formal approval  from the appropriate NPDES
authority.  Approximately 85 communities have substantially completed implementation of their
long-term control plans or other CSO control programs.31

       Protect Coastal and Great Lakes  Beaches:  The third element  of the strategy to protect
and restore recreational waters is focused on beaches used by the public for swimming and other
recreational activities hi coastal areas and the Great Lakes. Under the recently enacted Beaches
Environmental Assessment and Coastal Health (BEACH) Act,32 EPA provides guidance, grants
and support to state, tribal, and local governments for programs to monitor beach water quality
31 U.S. Environmental Protection Agency, Office of Water, Report to Congress - Implementation and Enforcement of the
Combined Sewer Overflow Control Policy; December 2001; EPA833-R-01-003.
32 Beaches Environmental Assessment and Coastal Health Act of 2000. Public Law 106-284 (October 10, 2000), 114 U.S. Stat.
870.

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and notify the public when bacterial contamination poses a risk to swimmers.33 EPA expects that
100 percent of significant public beaches identified by States and Territories will be managed
under BEACH Act programs by 2008.

       The BEACH Act requires that coastal and Great Lakes states adopt scientifically sound
water quality criteria for bacteria.  EPA expects to meet its target of all 35 coastal and Great
Lakes states and territories adopting scientifically sound bacteria criteria for recreation waters by
2008. As a result of related efforts, Agency-approved rapid analytic methods (<2 hours) will be
available for pathogen indicators of concern in recreation waters.

       Finally, EPA will continue  to expand public access to internet-based beach information
on its website.34  Governments receiving BEACH Act grants and communities responding to
EPA's annual National Beach Health Protection Survey provide EPA information on water
quality, beach monitoring and advisory programs, and beach closures.  In 2005, EPA  will
continue to develop data management systems to facilitate the transmittal of information to the
Agency electronically through the  Central Data Exchange (CDX) web portal, a cornerstone of
EPA's e-government  initiative.35  eBeaches36  will provide  rapid, easy and secure electronic
transmittal of beach water quality and swimming advisory information by state and local entities
through the CDX web portal. The  system will reduce the reporting burden and cost  of sending
beach water quality and swimming advisory information to EPA, a condition for continued
receipt of BEACH grants for monitoring and public notification programs.37   The eBeaches
system will also  assist EPA meet its public reporting requirements under the BEACH Act. In
addition, the system will enable beach advisory information  to be immediately  available to the
public and displayed on maps for  easy understanding.  EPA's new program tracking database
(Program tracking, beach Advisories, Water quality standards and Nutrients or "PRAWN")38
will archive  the  beach program,  advisory, and closure  information  enabling EPA to track
progress toward the target of coastal and Great Lakes beaches open and safe for swimming in
over 96 percent of the days during the beach season. The information is available to the public
on the internet at http://www.epa.gov/waterscience/beaches.

Categorical Grant: Pesticides Program Implementation

       In FY 2005, the Agency will continue to coordinate with States and Tribes providing
guidance and assistance in the development of generic and specific Pesticide Management Plans
in order to protect our ground water resources.  EPA will coordinate pesticide water issues and
assist our partners in identifying and implementing effective ground water protection programs
through these plans.   The Agency will continue to support  efforts for identifying the  adverse
effects of pesticides in ground and surface water at the State, Tribal and Regional levels.
Additionally, we will continue to  assist States and Tribes hi identifying,  developing  and
33 U.S. EPA. Office of Water. "National Beach Guidance and Required Performance Criteria for Grants." EPA-823-B-02-004.
Washington DC: EPA, June 2002. Available at http://www.epa.gov/waterscience/beaches/gtiidance/all.
34 U.S. EPA, Office of Water. Avaialable online at http://'www.epa.gov.waterscieKce/'beaches.
35 U.S. EPA, Office of Water. Avaialable online at http://www.epa.gov/cdx/
36 U.S. EPA. Office of Water. "eBeaches Enables Fast and Secure Transmission of Beach Water Quality and Swimming
Advisory Information." Fact Sheet. EPA-823-F-03-009. Washington, DC: EPA, July 2003. Available at
http:/vwwxv.epa.gov/waterscience/beaches.
37 U.S. EPA. Office of Water. "National Beach Guidance and Required Performance Criteria for Grants." EPA-823-B-02-004.
Washington, DC: EPA, June 2002. Available at http://w\\tw.epa.gov/waterscienc&'beaches/guidance/an .
38 U.S. EPA. Office of Water. "Beach Notification Data User Guide." EPA-823-R-03-005. Washington, DC: EPA, January 2003.
Available at http://www.epa.gov/waterscience/beaches/grants/2003/'

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implementing measures to prevent or reduce water contamination.  Key to this effort will be
tailoring preventive  and recovery measures to localities and specific  pesticides.    Pesticide
registration and reregistration reviews will  continue to include consideration of the potential
impacts to ground or surface waters. Risk  management actions could  include changes to use
patterns,  modifications  in application  techniques,  buffer zones,  and  working  with  the
manufacturer to alter the product formulation.  EPA provides funds to the states to implement
these programs, and offers national training courses as well.   States and tribes also offer training,
and  outreach, often  in multiple languages to ensure understanding of non-native  speakers, in
addition to operating state laboratories for testing to ensure compliance with use requirements.

International Capacity Building

       There are 2.2 million deaths annually worldwide - mostly children - from waterborne
diseases, and billions of cases of severe illness. This lack of clean water contributes to inabilities
of developing countries in particular to pull themselves out of poverty.  Poor economic growth
due to the disease burden can be tied to lost work days, the overburdening of already weak
healthcare systems, and poor children's health which leads to a diminished workforce for the
future. A World Health Organization (WHO) report39 on Macroeconomics and Health indicates
that adequate investment in water infrastructure and other health related services could make
immense contributions to long-term economic growth in developing countries.

       In FY 2005, the international safe drinking water program will continue its focus on
applying cleaner and more cost-effective environmental practices and technologies in order to
improve drinking water quality in partner countries. On-going projects in Central America,
Africa and China will be used as models to promote urban drinking water quality improvement
throughout these regions, with expansion into Asia, including India. With the number of
medium-sized cities (100,000 to 1 million inhabitants) and large cities (greater than 1 million
inhabitants) expected to rise dramatically over the next 20  years, these projects will help alleviate
the enormous stress on an already compromised water and wastewater infrastructure in urban
and peri-urban areas.

       In Latin America,  EPA will work  with partners such as the  Pan American Health
Organization's technical center - CEPIS - to strengthen their abilities to improve wafer quality
hi the region.  EPA implemented several drinking water projects in Africa during FY 2003, with
projects focused on nations hi  the southern  and eastern parts of the continent. In cooperation
with other Federal agencies and departments, EPA will expand these urban/peri-urban drinking
water programs during 2004.  Raising  awareness of the cost-effectiveness of protecting safe
water resources  (versus treatment of contaminated sources) will be an important component of
each project.  EPA  will work with  in-country partners  to  emphasize the health  impacts  and
societal costs, such as infant mortality or lost  work force productivity, which can result from
unsafe drinking water.  EPA will also consider environmental finance  options for small-scale
infrastructure improvements in urban communities.

       In China, a program to improve the quality  of drinking water derived.from the Hai River
Basin, has an initial focus on watershed management and source water protection. In India, EPA
39 WHO: Macroeconomics and Health: Investing in Health for Economic Development. Report of the Commission on
Macroeconomics and Health. 2001. ISBN 92 4 154550.

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will build capacity within municipalities to improve laboratory capacity, optimize treatment
plants and address standard setting as part of an overall program to address water quality in an
urban setting.
FY 2005 CHANGE FROM FY 2004

EPM

•      +$500,000 redirected from effluent guidelines for a sustainable infrastructure initiative to
       support partnerships with States, the utility industry, and other stakeholders to enhance
       the operating efficiencies of drinking water and wastewater utilities.

•      -$400,000 from the nationwide survey of containments in fish.  In FY 2004, EPA will
       complete  the  analyses  for  mercury,  PCBs,  dioxins/furans/co-planer  PCBs  and
       organochlorine pesticides from the fish tissues collected and conduct statistical analyses
       of these samples. During FY 2005, the Agency will document the findings of the survey
       and make them available to the public.  In addition, during FY 2005, the Agency will
       identify emerging containments of public health and environmental concern in fish (e.g.,
       flame retardants, fuel additives) and initiate analyses from archived fish tissues  of the
       narrower set of contaminants that pose particular concern. These FY 2005 activities will
       not require the same level of resources as in previous years.

•      (+$700,000, +0 FTE) This represents a redirection of resources from the U.S.-Mexico
       Border Program to target water issues in Latin America.

•      There are increases for payroll, cost of living and enrichment for existing FTE.

S&T

•      -$21,300,000 from critical water infrastructure protection, reflecting a shift in priorities
       from assistance and training on vulnerability assessments.

•      There are increases for payroll, cost of living and enrichment for existing FTE.

STAG

•      -$4,000,000 specifically targeted to begin designing the necessary drinking water
       infrastructure improvements to Metropolitano, Puerto Rico's large community water
       system. This makes the total request for FY2005 $4,000,000.


ANNUAL PERFORMANCE GOALS AND PERFORMANCE MEASURES

GOAL: CLEAN AND SAFE WATER

OBJECTIVE: PROTECT HUMAN HEALTH
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Annual Performance Goals and Measures
Safe Drinking Water

In 2005     93% of the population served by community water systems will receive drinking water that meets all
            applicable health-based drinking water standards through  effective treatment  and source water
            protection.

In 2005     94% of the population served by community water systems will receive drinking water that meets
            health-based standards with which systems need to comply as of December 2001.

In 2005     75% of the population served by community water systems will receive drinking water that meets
            health-based standards with a compliance date of January 2002 or later.

In 2005     94% of community water systems will provide drinking water that meets health-based standards with
            which systems need to comply as of December 2001.

In 2005     75% of community water systems will provide drinking water that meets health-based standards with a
            compliance date of January 2002 or later.

In 2005     90% of the population served by community water systems in Indian country will receive drinking
            water that meets all applicable health-based drinking water standards.

In 2004     85 percent of the population served by community water systems will receive drinking water meeting
            health-based standards promulgated in or after 1998.

In 2004     92% of the population served by community water systems will receive drinking water meeting all
            health-based standards in effect as of 1994, up from 83% in 1994.

In 2003     End of year FY 2003 data will be available in 2004 to verify 85  percent of the population served by
            community water systems received drinking water meeting health-based standards promulgated in or
            after 1998.

In 2003     End of year FY 2003 data will be  available in 2004 to verify 92% of the population served by
            community water systems received drinking water meeting all health-based standards hi effect as of
            1994, up from 83% in 1994.
Performance Measures:

Percent of  population served  by community
drinking water systems with no violations during
the year of any Federally enforceable health-
based standards that were in place by 1994.

Population served by community water systems
providing drinking water meeting  health-based
standards promulgated in or after 1998.

Population served by community water systems
that receive drinking water that meets health-
based  standards with which systems need  to
comply as of December 2001

Population served by community water systems
that receive drinking water that meets health-
based  standards with  a  compliance date  of
January 2002 or later

Percentage of  community  water  systems that
FY2003
Actuals
   91
   96
 FY2004
Pres. Bud.
    92
    85
 FY2005
Pres. Bud.
                               94
                               75
                               94
                % Population




                % Population



                % Population




                % Population




                % CWSs
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Performance Measures:

provide drinking water that meets health-based
standards with which systems need to comply as
of December 2001

Percentage of community water  systems that
provide drinking water that meets health-based
standards  with  a compliance date  of January
2002 or later

Percent of the population served by  community
water systems in Indian country that receive
drinking water that meets all applicable health-
based drinking water standards
% of population served  by community  water
systems that receive drinking water that meets all
applicable health-based drinking water standards
through effective treatment  and  source  water
protection
FY2003
Actuals
 FY2004
Pres. Bud.
 FY2005
Pres. Bud.
                               75
                               90
                               93
                              % CWSs
                              % Population
                              % population
Baseline:    In 1998, 85% of the population that was served by community water systems and 96% of the
            population served by non-community, non-transient drinking water systems received drinking water
            for which no violations of Federally enforceable health standards had occurred during the year.  Year-
            to-year performance is expected to change as new standards take effect. Covered standards include:
            Stage 1 disinfection by-products/interim enhanced surface water treatment rule/long-term enhanced
            surface water treatment rule/arsenic.
Source Water Protection

In 2005     20% of source water areas for community water systems will achieve minimized risk to public health.

In 2004     Advance States'  efforts with community water systems to protect their surface and  ground water
            resources that are sources of drinking water supplies.

In 2003     End of year FY 2003 data will be available in 2004 to verify 39,000 community water systems (75% of
            the nation's service population) will have completed source water assessments and 2,600 of these (10%
            of the nation's service population) will be implementing source water protection programs.
Performance Measures:

Number  of  community  water  systems and
percent of population served by those CWSs that
are  implementing   source   water  protection
programs.
FY2003
 Actuals
Data Lag
 FY2004
 Pres. Bud.
25% / 7,500
 FY2005
Pres. Bud.
                % pop/systems
Percent of source water areas for community
water  systems that achieve minimized risk to
public health
                               20
                               % Areas
Baseline:    EPA  defines "achieve minimized risk"  as  substantial implementation of source water protection
            actions, as determined by a State's source  water protection strategy.  Approximately 268 million
            people are estimated to be served by Community Water Systems (CWSs) in 2002.
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River/Lake Assessments for Fish Consumption

In 2005     80% of the shellfish growing acres monitored by states are approved or conditionally approved for use.

In 2005     At least 1% of the  water miles/acres  identified by states or tribes as having a fish consumption
            advisory in 2002 will have improved water and sediment quality so that increased consumption offish
            and shellfish is allowed.

In 2004     Reduce consumption of contaminated fish by increasing the information available to States, Tribes,
            local governments, citizens, and decision-makers.

In 2003     Reduced consumption of contaminated fish by increasing the information available to States, Tribes,
            local governments, citizens, and decision-makers.
Performance Measures:                         FY 2003
                                               Actuals
Lake acres assessed  for  the  need  for fish      33
advisories and compilation of state-issued fish
consumption      advisory     methodologies.
(cumulative)
River  miles  assessed  for the need for fish
consumption advisories & compilation of state-
issued fish consumption advisory methodologies.
(cumulative)

Percent of water miles/acres, identified by states
or tribes as having fish consumption advisories
in 2002, where increased  consumption of fish is
allowed.
Percent of the shellfish growing acres monitored
by states that are approved or conditionally
approved for use
15
          FY2004
          Pres. Bud.
             35
16%
            FY2005
           Pres. Bud.
                            80
                           % Lake acres
% River miles
                                        % Miles/Acres
                           % Areas
Baseline:    In 1999, 7% of the Nation's rivers and 15% of the Nation's lakes were assessed to determine if they
            contained fish that should not be eaten or should be eaten in only limited quantities.  In September
            1999, 25 states/tribes are monitoring and conducting assessments based on the national guidance to
            establish nationally consistent fish advisories. In the 2000 Report to Congress on the National Water
            Quality Inventory, 69% of assessed river and stream miles; 63% of assessed lake, reservoir, and pond
            acres; and 53% of assessed estuarie square miles supported their designated use for fish consumption.
            For shell fish consumption, 77% of assessed estuary square miles met this designated use.

Increase Information on Beaches

In 2005     Coastal and Great Lakes beaches monitored by State beach safety programs will be open and safe for
            swimming in over 94% of the days of the beach season.

In 2005     Restore water quality to allow swimming  in not less than 2% of the stream miles and lake acres
            identified by states in 2000 as having water quality unsafe for swimming.

In 2004     Reduce human exposure to contaminated recreation waters by increasing the information available to
            the public and decision-makers.

In 2003     Reduced human exposure to contaminated recreation waters by increasing the information available to
            the public and decision-makers.
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Performance Measures:                      FY2003     FY2004       FY2005
                                         Actuals     Pres. Bud.     Pres. Bud.


Beaches for which monitoring and closure data is    2,823        2,823                      Beaches
available     to      the     public     at
http://www.epa.gov/waterscience/beaches/.
(cumulative)

Restore water quality to allow swimming hi                               2          %
stream miles and lake acres identified by states                                            Miles/Acres

Days (of beach season) that coastal and Great                              94          %
Lakes beaches monitored by State beach safety                                          Days/Season
programs are open and safe for swimming.


Baseline:   By the end of FY 1999, 33 states had responded to EPA's first annual survey on state and local beach
          monitoring and closure practices and EPA made available to the public via the internet. An average of
          9 recreational contact waterborne disease outbreaks reported per year by the Centers for Disease
          Control for the years 1994-1998,  based on data  housed in EPA/ORD internal database.  In 2002,
          monitored beaches were opened 94% of the days during the beach season.
VERFICATION AND VALIDATION OF PERFRQMANCE MEASURES

FY 2005 Performance Measures: The percentage of the population served by community water
systems that receive drinking water that meets health-based standards with which systems need to
comply as of December 2001.
The percentage of the population served by community water systems that receive drinking
water that meets health-based standards with a compliance date of January 2002 or later.
(Covered standards include:   Stage I disinfection by-products/interim enhanced surface
water treatment rule/long-term enhanced surface water treatment rule/arsenic.)
The percentage of community water systems that provide drinking water that meets health-
based standards with which systems need to comply as of December 2001.
The percentage of community water systems that provide drinking water that meets health-
based standards with a compliance date of January 2002 or later.
The percentage of population served by community water systems hi Indian country that
receive drinking water that meets all applicable health-based drinking water standards.

Performance Database: Safe Drinking Water Information System- Federal Version (SDWIS or
SDWIS-FED).  SDWIS contains basic inventory information, including an individual public water
system's activity status, type of water system (i.e., community, non-community, and non-transient
non-community), and the population  served by that system.  SDWIS also contains violations

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records  that detail violations  of the Safe Drinking Water Act and the statute's implementing
regulations.  The performance measure is based on the population served by community water
systems that were active during any part of the performance year and did not have any violations
designated as "health based."  Exceedances of a maximum contaminant level and violations of a
treatment technique are health-based violations;  monitoring and reporting, record keeping, and
public notification violations are not "health based."

Data Source:  Agencies with primacy (primary enforcement authority) for the Public Water
Supply  Supervision (PWSS) program including states and EPA  Regional  Offices with direct
implementation (DI) responsibility for states and Indian tribes. The Navajo Nation Indian tribe, the
only tribe with primacy, is expected to begin reporting directly to EPA in FY 2004.  Primacy
agencies collect the data from the regulated water systems, determine compliance, and report a
subset of the data to EPA (primarily inventory and violations).

Methods, Assumptions and Suitability: The analytical methods that drinking water systems use
to collect violations data are specified in the technical guidance associated with each drinking
water regulation.  Laboratories must be certified by the primacy agencies to analyze drinking
water samples and are subject to periodic performance audits by the states and EPA as the direct
implementers. Performance measures are based on data reported by individual systems to states,
which, in turn, supply the information to EPA through SDWIS. EPA then verifies and validates
the data for 10 to 12 states per year, according to  a protocol, which is updated annually.  To
measure program performance, EPA aggregates the  SDWIS data into a national statistic on
overall compliance with health-based drinking water standards.  This statistic compares the total
population served by community water systems meeting all health-based standards to the total
population served by all community water systems.

QA/QC Procedures:  SDWIS-FED has numerous  edit checks built into the software to reject
erroneous data. There are quality assurance manuals for states and Regions to follow to ensure
data quality.  The manuals  provide standard  operating procedures for  conducting routine
assessments of the quality of the  data, communication and follow-up actions to be conducted
with the state to achieve timely corrective action(s). EPA offers training to  states on reporting
requirements, data entry, data retrieval, and error correction. User and system documentation is
produced with each software release and is maintained on EPA's  web site.  SDWIS-FED
documentation includes data entry instructions, data element dictionary (on-line data dictionary -
electronic documentation), entity relationship diagrams, a user's manual, and regulation-specific
reporting requirements documents. System, user, and reporting requirements documents can be
found on the EPA web site,  http://www.epa.gov/safewater/.   System and user documents are
accessed via the database link http://w\wt'.epa.gov/safewater/databases.html. and specific  rule
reporting requirements  documents  are  accessed via the regulations, guidance, and  policy
documents  link http://www.epa.gov/safewater/regs.html.   In addition, EPA provides specific
error correction and reconciliation support through a troubleshooter's guide, a system-generated
summary with detailed reports documenting the results of each data  submission, and an error
code database for states to use when they have questions on how to enter or correct data. A user
support hotline is available 5 days a week to answer questions and provide technical assistance.
At least one EPA staff person in each EPA regional office serves as the SDWIS-FED Regional
data management coordinator to provide technical assistance and training to the states on all
aspects  of information management  and  required  reporting to EPA.   Primacy  agencies'
information systems are audited on an average schedule of once every 3 years.

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SDWIS-FED does not have a quality assurance project plan - it is a legacy system which has
"evolved" since the early 1980s prior to the requirement for a plan. The SDWIS-FED equivalent
is the data reliability action plan40 (DRAP).  The DRAP contains the processes and procedures
and major activities to be employed  and undertaken for assuring the data in  SDWIS meet
required data quality standards.   There are three major components of this  plan: assurance,
assessment, and control.   The  assurance component  includes  management  of  the plan,
development and/or maintenance  of tools used to support the implementation processes and
procedures,  and standard operating procedures.  It also includes provision of training, technical
assistance vehicles, coordination with other program areas that use the data or impact its quality.
The second major component of the plan is assessment.  Quality assurance assessments include
all types of review, audit, and assessment of the DRAP, data, and information needs.  The third
major component of the plan is control. Quality assurance controls include software edit checks,
processing controls, security  controls,  and other procedural controls that  limit or  prevent
incomplete, inaccurate,  or unauthorized updates or modifications to the  data.   The  data
verification  protocol, and its use in on-site audits of states' files, is the final measure of data
quality control.  Thirty-one state data  verification audits were conducted over the period from
1999 to 2001.

Data Quality Review:  SDWIS data quality was identified as an Agency weakness in 1999 and
has a corrective action completion target date in 2005.  SDWIS'  weaknesses center around five
major issues: 1) completeness of the data (e.g., the inventory of public water systems, violations of
maximum contaminant levels, enforcement actions) submitted by the states,  2) timeliness of the
data sent by the states, i.e., if states do not report at specified times, then enforcement and oversight
actions suffer, 3) difficulty receiving data from the states, 4) both cost and difficulty processing and
storing  data in SDWIS after it has been  received,  and 5) difficulty getting SDWIS data for
reporting and analysis.  The DRAP focuses on the first three issues, and an information strategic
plan41 (ISP) has been developed and is being implemented to address the last two issues, which
deal primarily with technology (hardware and software) concerns. For instance, the  ISP is
examining ways to improve tools and processes for creating and transferring data to EPA, such as
incorporating  newer technologies and adapting the Agency's Enterprise Architecture Plan to
integrate data and the flow of data from  reporting entities to EPA via  a secure  central data
exchange (CDX) environment.  Detailed activities and implementation schedules are included in
these two documents, and to date the Agency expects to correct these weaknesses by  the end of
2005.

Routine data quality assurance and quality control (QA/QC) analyses of the Safe Drinking Water
Information System (SDWIS) by the Office Water (OW) have revealed a degree of nonreporting
of violations of health-based drinking water standards, and of violations of regulatory monitoring
and reporting requirements. As a result of these data quality problems, the baseline statistic of
national compliance with health-based drinking water standards likely is lower than previously
reported. The Agency is currently engaged in a rigorous statistical  analysis and in discussions
with states to more accurately quantify the impact of these data quality problems on the estimate
40 Data Reliability Action Plan. U.S. EPA, October 2002. Office of Ground Water and Drinking Water internal work plan
document.
41 U.S. EPA, Office of Water, Office of Ground Water and Drinking Water Information Strategy (under revision). See Options
for OGWDWInformation Strategy (Working Draft), EPA 816-P-01-001. Washington, DC, February 2001. Available on the
Internet at http://www.epa.gov/safewater/data/infortnationstrategy.html

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of national compliance with health-based drinking water standards.  This analysis could result in
statistically based adjustments to the baseline that will lower the 5-year (2008) performance
targets for our SDWIS-based  subobjective and strategic measures.   Ongoing  EPA and state
efforts to improve data quality in SDWIS already have resulted in significant improvements in
data accuracy and completeness, however.  Even  as  these improvements are  made, SDWIS
serves as the best source of national information on compliance with Safe Drinking Water Act
requirements, and is a critical database for program management, the development of drinking
water regulations, trends analyses, and public information.

Management System Reviews (MSRs) of quality assurance/quality control (QA/QC) systems for
SDWIS are carried out by the  Quality Assurance Division  of the Office of Environmental
Information.  An MSR of SDWIS data quality was completed in 1999 and the final report
contained favorable comments on the level  of detail in EPA's plans and actions to improve data
quality. EPA also completed a data reliability assessment (QA audit) of the 1996-1998 SDWIS-
FED data in FY 2000, which, hi turn, led to the development and issuance of the 2002 DRAP. A
second data reliability assessment is expected to be released in January 2004 and is based on
1998-2001 data in SDWIS/FED.    Also, the 2002 DRAP will be revised and expanded in 2004
to include the findings of the second data reliability assessment.

•      The  basic findings  from the second data reliability assessment were that the data hi
       SDWIS are accurate but  incomplete. Improvements were observed in all areas except
       timeliness of violations reporting. Core inventory data are highly complete and accurate.
       The  quality of  violations data is  improving, with high accuracy  but still  low in
       completeness.  Monitoring and reporting violations continue to be the  major problem
       area.  Health-based  violation data  quality  is  highly  accurate with  higher  levels of
       completeness than monitoring violations data.

Finally, EPA and its  contracted auditors  of primacy agencies' information systems conduct
individual data quality reviews. The frequency of these audits is every 2 to 4 years depending on
the  resources available and programmatic need in the region.  Continuous data quality reviews
include data quality  estimates  based  on  the results of data verifications,  timeliness and
completeness of violation reporting, completeness of various required inventory data elements,
and completeness of reporting for specific rules.

Data Limitations: Currently SDWIS-FED is an "exceptions" database that focuses exclusively on
public water systems noncompliance with drinking water regulations (health-based and program).
Primacy states implement drinking water regulations with the support of the Public Water System
Supervision  (PWSS) grant program and determine whether public water systems have violated:
maximum contaminant levels (MCL);  treatment technique requirements;  consumer notification
requirements; or monitoring-and-reporting requirements.  These violations are reported through
SDWIS.

Recent state data  verification and other  quality  assurance analyses indicate that the  most
significant  data  quality problem is under-reporting to EPA  of monitoring  and health-based
standards violations and inventory characteristics, such as water sources and/or latitude/longitude
for  all sources.  The  most significant under-reporting occurs in monitoring  violations.  Even
though those are not  covered in the health based violation category, which is  covered by  the
performance measure, failures to monitor could mask treatment technique and MCL violations.

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Such under-reporting of violations limits EPA's ability to: 1) accurately quantify the number of
sources and treatments applied, 2) undertake gee-spatial analysis, and 3) integrate and share data
with other data  systems.  The  under-reporting limits EPA's  ability to precisely quantify the
population served by systems, which are meeting the health-based standards. As described in the
Data Quality Review section above, currently the program office is assessing the percentage of
unreported health-based violations and calculating possible adjustments to the performance data
that  might be required for future reports.  The SDWIS inventory of public water systems is
highly complete and the quality of population data has been determined to be of high quality.

In addition to the DRAP and  the information strategy, other options under consideration to
improve data in SDWIS include:

1.   Increase the focus on state compliance determinations and reporting of complete, accurate
     and  timely violations data.   This  is the single most significant factor for data quality
     improvement.
2.   Develop incentives  to  improve the  accuracy, completeness, and timeliness  of  state
     reporting.
3.   Enhance and ease the flow of data from  providers to EPA  via a secure environment
     (Central Data Exchange - CDX), utilizing modern technologies (e.g.,  extensible markup
     language - XML) and standardized procedures and processes.
4.   Continue to analyze the quality of the data.
5.   Obtain parametric data (analytical results used to evaluate compliance with  monitoring
     regulations and compliance with treatment techniques and maximum contaminant levels)
     from states through an agreement on voluntarily reporting these data to EPA,  monitoring
     schedules, and waiver information assigned  to water systems by the state primacy agency.
     This information would allow EPA to  have more  direct access  to  the data  used for
     compliance determinations for quality assurance and state oversight purposes.  Potential
     violation under reporting  could be identified through the availability of this information
     and appropriate corrective actions implemented.

Error Estimate:  Analyses  are under  way  to determine the impact of data quality  on the
performance measures, and are scheduled for completion by early 2004. The analysis will include
data from an additional round of audits to provide  a more accurate error estimate compared to the
results of earlier baseline audits.

New/Improved Data or Systems: Several approaches are underway.

First, EPA will continue to work with states to implement the DRAP and ISP, which have already
improved the completeness, accuracy, timeliness, and consistency of the data in  SDWIS-FED
through:  1) training courses for  SDWIS-FED data entry, error correction, and regulation specific
compliance  determination and  reporting requirements, 2)  specific  DRAP  analyses, follow-up
activities and state-specific technical assistance, 3) increased number of data verifications
conducted each year, and 4) creation of various quality assurance reports to assist regions and
states in the identification and reconciliation of missing, incomplete, or conflicting data.
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Second, more states will use SDWIS-STATE,42 a software information system jointly designed
by states and EPA, to support states as they implement the drinking water program.  SDWIS-
STATE is the counterpart to SDWIS-FED and uses many of the same edit criteria and enforces
many of the mandatory data elements. If the SDWIS-STATE system is fully utilized by a state,
the information it holds would meet EPA's minimum data requirements.  SDWIS-STATE links
directly to  SDWIS-FED, which aids in easing the  states' reporting burden to EPA and hi the
process minimizes data conversion errors and improves data quality and accuracy. In addition, a
Web-enabled version of SDWIS-STATE and a data migration application that can be used by all
states to process data for upload to  SDWIS-FED are being developed.  EPA estimates that 40
states will be using SDWIS-STATE for data collections by the end of FY 2004.

Third, EPA is modifying  SDWIS-FED  to (1) streamline its table structure, which simplifies
updates and retrievals, (2) minimize data entry options  that result in complex software  and
prevent meaningful edit criteria, (3)  enforce compliance with permitted values and Agency data
standards through  software edits, and (4) ease the  flow of data to  EPA through a secure data
exchange  environment  incorporating modern technologies, all of which will  improve  the
accuracy of the data.

Fourth, EPA has developed a data warehouse system that is optimized for analysis, data retrieval,
and data integration  from other  data sources like information from data verifications, sample
(parametric) data,  source water quality data (e.g.,  U.S. Geological Survey [USGS] data),  and
indicators from inspections conducted at the water systems. It will improve the program's ability
to more efficiently use information to  support decision-making and effectively  manage the
program.

Finally, EPA, in partnership with the states, is developing information modules on other drinking
water  programs:  the Source Water Protection Program, the  Underground Injection Control
Program (UIC), and the  Drinking Water State Revolving Fund.  These modules will be
integrated with SDWIS to provide  a more  comprehensive data set with which to assess the
nation's drinking water supplies, a key component of the goal. In 2003, agreement was reached
on the data elements  for reporting source water and UIC data.  In 2004, plans will be developed
for design of systems to address these data flows. Developing the systems to receive the data is
scheduled for 2005.

References:
Plans*

   •   SDWIS-FED does not have a Quality Assurance Project Plan - it is a legacy system which
       has "evolved" since the early 80s prior to the requirement for a Plan. The SDWIS-FED
       equivalent is the Data Reliability Action Plan.
   •   Information Strategy Plan - SDWIS-FED (see footnote 2 )
   •   Office of Water Quality Management Plan, available at
       http://www.epa.gov/water/info.htnil
42 SDWIS/STATE (Version 8.1) is an optional Oracle data base application available for use by states and EPA regions to
support implementation of their drinking water programs.
U.S. EPA, Office of Ground Water and Drinking Water. Data and Databases. Drinking Water Data & Databases -
SDWIS/STATE, July 2002. Information available on the Internet: 

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   •   Enterprise Architecture Plan

Reports*

   •   1999 SDWIS/FED Data Reliability
   •   2003 SDWIS/FED Data Reliability Report - contains the Data Reliability Action Plan and
       status report
   •   PWSS Management Report (quarterly)
   •   1999 Management Plan Review Report
   •   2003 Management Plan Review Report

Guidance Manuals, and Tools

   •   PWSS SDWIS/FED Quality Assurance Manual
   •   Various SDWTS-FED User and System Guidance Manuals (includes data entry
       instructions, data On-line Data Element Dictionary-a database application, Error Code
       Data Base (ECDB) - a database application, users guide, release notes, etc.) Available on
       the Internet at 
   •   Regulation-Specific Reporting Requirements Guidance. Available on the Internet at
       

Web site addresses

   •   OGWDW Internet Site  and contains
       access to the information systems and various guidance, manuals, tools, and reports.
   •   Sites of particular interest are:
        contains information for users to
       better analyze the data, and
          contains  reporting   guidance,
       system and user documentation and reporting tools for the SDWIS-FED system.

FY 2005 Performance Measure:  Percentage  of source water areas  for  community water
systems that achieve minimized risk to public health.

Performance Database:  The source water assessment and protection programs are authorized
under Sections 1453,  1428,  and relevant subsections of  1452  of the Safe Drinking Water Act
(SDWA). 3  EPA  issued guidance to implement these programs in  1997, State Source Water
Assessment  and Protection Programs  Guidance?4   EPA will issue supplemental reporting
guidance - - Source Water Assessment and Protection Measures: Initial Guidance - - in 2004.
Starting in FY 2003, and updated annually thereafter, states will report to EPA on the results of
their source water assessment programs'  (SWAPs) progress  in  implementing source water
* These are internal documents maintained by EPA's Office of Ground Water and Drinking Water. Please call 202-564-3751 for
further information.
43 Safe Drinking Water Act Amendments of 1996. P.L. 104-182. (Washington: 6 August 1996). Available on the Internet at

44 U.S. EPA, Office of Water. State Source Water Assessment and Protection Programs Guidance. EPA 816-R-97-009
(Washington: US EPA, August 1997). Available on the Internet at 

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protection (SWP) strategies, and whether such strategy implementation is affecting public health
protection.  To  assess progress in completing  the SWAPs, state reporting will include five
elements: (1) the delineated source water areas around each well and intake,  (2) whether the
assessments are  complete, (3) and  (4)  most  prevalent  and  most threatening sources  of
contamination,  and  (5) relative susceptibility  ratings  across  source water areas, i.e., high,
medium, or low susceptibility. To assess progress in implementing the SWP strategies, state
reporting will include three elements: (1)  whether a prevention strategy covering source water
areas has been adopted, (2) whether that strategy is being implemented, and (3) whether such
strategy  implementation has  reached a substantial level.  To assess whether the program is
affecting public health protection, states will report change in the number of source water areas
with substantially implemented source water protection strategies.  The Agency will develop a
national summary of data on the progress of states'  source water protection programs using these
data elements.

In FY  2003, EPA maintained state-level summary data for each of these elements in an Excel
database. Beginning in FY 2004, states may, at their option, make available to EPA public water
system-level data for each of these elements to be maintained hi a set of data tables in the
drinking water warehouse (for tabular data) and  in event tables in the Office of Water's Reach
Address  Database (RAD)45 (GIS data). These data will be compatible with the inventory data
States are currently reporting to the Safe Drinking Water Information System (SDWIS).46 [Not
publicly available. Contact the Drinking Water Protection Division at 202-564-3797.]

Data Source:  See section "New/Improved Data or Systems."

Methods, Assumptions and  Suitability:  For this measure,  the states' reporting of progress in
implementing their source water assessment and protection  programs will be based on EPA's
2004 guidance, Source Water Assessment and Protection Measures: Initial Guidance.  States
will only report state-level summary  information that may be:   (1) directly related to  specific
community water systems hi  a database;  (2) directly related to the community water  systems
sampled in a statewide statistical  sample; or (3) estimated  using best professional judgment.
Because state reporting will  be based on consistent  definitions and procedures  found in the
Source Water Assessment and Protection  Measures: Initial Guidance, EPA assumes that these
data are reliable for use hi making management decisions.

QA/QC Procedures:  QA/QC procedures  will be included in the 2004 Source Water Assessment
and Protection Measures: Initial Guidance.  Additionally, a series of data checks will  be built
into the Excel-based data collection procedures given to each Region for their work with states.
States  will be required to  identify whether their reported summary-level data are based on a
system-level database or  on  aggregate-level estimates.  EPA's Regions also will  work with
individual states to obtain a description of their methods of collecting and verifying information.

Data Quality Reviews:  EPA Regions will conduct data quality reviews of state data using the
QA/QC procedures included with the Excel-based data system, and work with states to resolve
45 Watershed Assessment, Tracking & Environmental Results (WATERS). Available only on the Internet at

46 Safe Drinking Water Information System (SDWIS). Information available on the Internet at


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data exceptions. As a result, EPA expects the quality of data on assessments and source water
protection activities to improve over time.

Data Limitations:  Because the initial reporting provides only state-level summary information,
there is no standard protocol for EPA to verify and validate the data to system-level information
contained in state databases.  In addition, much of the data reported by states is voluntary and
based on working agreements with EPA because SDWA only requires states to complete source
water assessments.  The only source water information that states are required to report to EPA
under SDWA is whether the assessments are completed.  Although EPA's 2004 Source Water
Assessment and Protection Measures: Initial Guidance will set standard data definitions and
procedures, it also provides for considerable flexibility in states' data collection protocols and
analytical methods  to evaluate their data.  For example,  some states may require each public
water system (PWS) to report data, while others may institute a voluntary process. Further, those
states that use statistical surveys may choose samples differently.  Because  much of the  data
reporting is voluntary and the individual  state protocols may vary, state data may be incomplete
and inconsistent across states.

Error Estimate: There is no basis  for making an error estimate for this performance measure
given the data limitations of state-level summary reporting described above.

New/Improved Data or Systems:   EPA is developing  a new source water data module  to
collect, store, and use public water  system-level data received from states.  The source water
module is being developed as a joint initiative between EPA, the Association of State Drinking
Water Administrators (ASDWA), and the Ground Water Protection Council  (GWPC).  It will
give EPA the ability to  access the data directly from states through a data exchange agreement
using an electronic  data transfer capability. A state may  choose, at its option, to provide EPA
more detailed data in lieu of state-level summary reporting. The new source water data module
will be integrated into the drinking water data warehouse and be compatible with Safe Drinking
Water Information System (SDWIS) data already reported by states.  Geospatial data (i.e., the
intake and well point locations and the source water area polygons) will be maintained in EPA's
Office of Water's Reach Access Database (RAD). The source water assessment and protection
indicator data and other attribute data will be  maintained in data  tables in the drinking water
warehouse.  The source water data  module should be operational in FY 2004.  A number  of
states  are expected to report this detailed data in 2004  as part of the EPA/ASDWA/GWPC
initiative.

References:

Guidance Manuals

    •  U.S. EPA, Office of Water. State Source Water Assessment and Protection Programs
       Guidance. EPA 816-R-97-009 (Washington: US EPA, August 1997). Available on the
       Internet at 
    •  Source Water Assessment and Protection Measures: Initial Guidance (to be released late
       summer 2003)
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Web site addresses

   •  US EPA Office of Ground Water and Drinking Water, 
   •  For more detailed information on Source Water topics, US EPA Office of Ground Water
      and Drinking Water, Source Water site, 
   •  US EPA Office of Water (OW) Reach Access Database (RAD). Watershed Assessment,
      Tracking & Environmental Results (WATERS), 
   «  Safe Drinking Water Information System (SDWIS).
      http://www.epa.gov/safewater/databases.htm}

FY 2005 Performance Measure;  Percent of the population and the number of community
water systems - - serving more than 3,300 but less than 50,000 people - - that have certified
the completion of the development or revision of their emergency response plan.

Performance Database: No formal EPA database.  Performance is tracked against a master list
of small systems (each  of  which serves  between 3,301 and 49,999 people) that has  been
compiled specifically for this performance measure.

Data Source: The Safe Drinking Water Information System (SDWIS) is the source of drinking
water system descriptive information, including system size.  The  master list of small  drinking
water systems was compiled by determining which systems, based on size, are required to
develop/revise emergency response plans and submit a certification of completion of this activity
to EPA in accordance with the Public Health  Security and Bioterrorism Preparedness and
Response Act of 2002 (Bioterrorism Act).

Methods, Assumptions  and Suitability:  The method for determining the number  of small
community water systems subject to the requirements of the Bioterrorism Act was to compile the
number  of community water systems listed in SDWIS in July 2002.  This listing was sent to
Regional drinking water program staff who, in turn, worked  with each state in that Region to
review and categorize these  systems by size as defined  in the Bioterrorism  Act.  However,
because the number of community water systems  changes often - - due to acquisitions,  mergers,
closures, etc. - - all major stakeholders hi this effort, i.e., EPA, state, drinking water  systems,
states-related organizations,  and environmental groups agreed that these  numbers should  be
considered estimates and that EPA should count  the number  of certifications of completion of
emergency response plans submitted to the Agency. Each state serves as the final arbiter of
issues related to system size.  As each system submits this document, its name is checked.  Any
system on the list that has not submitted its certification of emergency response plan completion
by the statutory deadline set forth hi the Bioterrorism Act is  contacted and a  determination is
made at that time if the system is still in operation  and when it will submit the required material.

QA/QC Procedures: Other than what is described above, there is no QA/QC procedure for this
activity and performance measure.

Data Quality  Review: EPA works with the states on a regular basis to identify the  drinking
water systems hi that state and to assure that these systems are reporting data to SDWIS.

Data Limitations:  N/A

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Error Estimate: N/A

New/Improved Data or Systems: With a newly-developed information strategy developed by
EPA in partnership with the states and major stakeholders, several improvements to SDWIS are
underway.

References: N/A

FY 2005 Performance Measure: The quality of water and sediments will be improved to
allow increased consumption of fish in not less than 3% of the water miles/acres identified
by states or tribes as having a fish consumption advisory in 2002.

Performance Database:  National Listing of Fish and Wildlife Advisories.1 The database
includes fields identifying the waters for which fish consumption advisories have been issued.
The fields also identify the date  upon which the advisory was  issued, thus allowing  an
assessment of trends.  The National Hydrographic Data (NHD) are used to calculate the spatial
extent of the fish advisory.  This information is updated continually as states and tribes issue or
revise advisories.  The National Listing of Fish  and Wildlife  Advisories database includes
records showing that 485,205 river miles and 11,277,276  lake acres were identified by states or
tribes in calendar year 2002 (calendar year 2003 data will be available in May 2004) as having
fish with chemical contamination levels resulting in an advisory of potential human health risk
from consumption. States and tribes report data on a calendar year basis.  The calendar year data
are then used to support the fiscal year commitments (e.g. calendar year 2002 data support the
FY 2003 commitments).  Metadata are also available describing methodologies used by states
and tribes for establishing advisories.

Data  Source:  State and Tribal Governments.  These entities collect the information and enter it
directly Into the National Listing of Fish  and Wildlife Advisories database.  EPA  reviews
advisory entries, including the states' or tribes' responses to an on-line survey, which support the
advisory decision.   The Agency follows-up with the  state or local government to obtain
additional information where it is incomplete.

Methods, Assumptions and Suitability:   The database comprises advisories that reporting
states and tribes have in effect each year. The advisories are specific to a waterbody, and thus
are not aggregated.   The percentage of lake acres and river miles assessed is the ratio of the
surface area of lakes  and/or rivers for which states submit data to  the National Listing of Fish &
Wildlife Advisories database and the total water surface area in the United States. It is a simple
mathematical calculation. The database reflects the actual number of advisories that states and
tribes issued, and are thus specific to the performance measure.

QA/QC Procedures: A standard survey, which has been approved by OMB, is available on the
Internet for electronic  submission.  A password is issued to ensure the  appropriate  party is
completing the  survey.  EPA has national guidance2'3 for states  and tribes on developing and
implementing quality assurance practices for the collection of environmental information related
to fish advisories.  This guidance helps assure data quality of the information that states and
tribes  use  to decide whether  to  issue an  advisory.    The Office  of  Water's  "Quality
Management Plan, "  approved in September 2001  and published in July 20024, is the guidance
that applies to this information collection.

                                         11-42

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Data Quality Reviews: EPA reviews advisory entries and responses to the survey to ensure the
information is complete, then follows-up with the state or local government to obtain additional
information where needed.  However, the Agency cannot verify the accuracy of the voluntary
information that state and local governments provide. There have been no external party reviews
of this information.

Data Limitations:  Participation in this survey and collection of data is voluntary.  While the
voluntary response rate has been high, it does not capture the complete universe of advisories.
Two states, Puerto Rico, the Virgin Islands, and Guam do not report in the survey. In addition,
states have not assessed all waters  for the need for advisories,  so  the information  reported
reflects a subset of waterbodies in the state.

Error Estimate:  Because  submitting data to the National Listing of Fish & Wildlife Advisories
database is voluntary,  the Agency cannot be  certain that the database contains  information on
100% of the assessed waters in the United States. Therefore, we may be understating the total
amount  of waters assessed, the magnitude of which is not known. The error value cannot be
quantified.

New/Improved Data or Systems: EPA will  use grants to encourage states to investigate more
waters for the need for advisories. This will  increase the number of waterbodies assessed, and
lead to a more complete characterization of the nation's fish safety.

References:

1.     U.S. EPA. Office of Water. " National Listing of Fish and Wildlife Advisories. "
      Washington,  DC: EPA Accessed May 1, 2003. Available only on the internet at
      http://map 1 .epa.gov/
2.     U.S. EPA. Office of Water. " Fish Sampling and Analysis."  Volume 1 of AGuidance
for   Assessing Chemical Contaminant Data for Use in Fish Advisories. 3rd ed. EPA-823-B-
      00-007. Washington DC: EPA, 2000. Available at
      http://w-w-w.epa.gov/waterscience/fishadvice/volume i/ .
3.     U.S. EPA. Office of Water. " Risk Assessment and Fish Consumption Limits. "
Volume 2     of AGuidance for Assessing Chemical Contaminant Data for Use in Fish
Advisories. 3rd       ed. EPA-823-B-00-008. Washington DC: EPA, 2000.
      http://www.epa.gov/waterscience/fishadvice/volume2/.
4.     U.S. EPA. Office of Water. " Quality Management Plan." EPA  821 -X-02-001.
      Washington,  DC: EPA, July 2002.  Available at
      http://www.epa.gov/ow/prograrns/qmp july2.

FY 2005 Performance Measure; Percentage of the shellfish-growing acres monitored by states
that will be approved for use.

Performance Database: The Shellfish Information Management System (SIMS). The database
is  being  developed  and  implemented  by  the  National   Oceanographic  and Atmospheric
Administration  (NOAA) on behalf of the Interstate Shellfish Sanitation Conference (ISSC), a
Cooperative Program chartered by the Food and Drug Administration (FDA). The database will
include  relevant information   that  is  collected   by  State  Shellfish Control  Authorities.
Historically, NOAA collected shellfish-growing area data hi 5-year intervals, 1985, 1990, and

                                         11-43

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1995.  These data were not stored in a database.  Once operational, SIMS will be the first
national shellfish  growing area database and will include NOAA's 1995 data and new data,
available in September,  2003.  State summary information can then be used to track trends
relevant to the performance measure, with the 1995 data as baseline. The  SIMS  database is
designed as a real tune database.  The ISSC plans to request data updates annually, but states
may update then: data any time. These data may be accessed at any time so timely status reports
can be generated.

Data  Source:  EPA is a member of the ISSC SIMS steering committee, along with FDA and
NOAA.   The  SIMS architecture is  compatible with other databases  using the National
Hydrographic Dataset (NHD). The steering committee is confident that the procedures used to
collect, analyze, and report the data will result hi accurate and reliable data.

Methods, Assumptions and Suitability:  SIMS is a real time database and, therefore, will
provide up-to-date information.

QA/QC Procedures:  States will be responsible for  the internal QA/QC of their data. SIMS is
designed to use state data to produce nationwide reports.

Data  Quality Reviews:  The ISSC is developing its SIMS processes to review data submitted by
states.

Data  Limitations: Based on NOAA's previous surveys and the voluntary nature of the effort,
potential data limitations may include incomplete coverage of shellfish growing areas.

Error Estimate:  No estimates are available.

New/Improved Data or Systems:  SIMS, initiated  in September 2003, will be evaluated on a
periodic basis to identify and implement improvements.

References:  None at this time.

FY 2005 Performance Measure;  Restore water quality to allow swimming in stream miles
and lake acres identified by states in 2000 as having water quality unsafe for recreation.

[The  data narrative for this measure is under Goal 2, Objective 2 — FY 2005 Performance
Measure: Water  quality standards are fully attained in miles/acres of waters identified in
2000  as not attaining standards.]

FY 2005 Performance Measure:  Percentage of days of the beach season that coastal and
Great Lakes beaches monitored by State beach safety programs will be open and safe for
swimming.

Performance Database: The data are stored in PRAWN (Program tracking, beach Advisories,
Water quality standards, and Nutrients)1, an new  internal database that feeds into the National
Health Protection  Survey of Beaches Information Management System.2 The database includes
fields identifying  the beaches for which monitoring and notification information are available
and the date upon which the advisory or closure was issued, thus enabling trend assessments to

                                         11-44

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be made.  Beginning in FY 2003, the database will identify those states that have received a
BEACH (Beaches Environmental Assessment  and Coastal Health) Act [P.L.  106-284]  grant.
EPA reports the information annually, on a calendar year basis, each May.

Data Source: Since 1997, EPA has surveyed  state and local governments for information on
their monitoring programs and on their advisories or closures.  State and local governmental
response to the survey is voluntary.  The number of records on beaches has grown from 1,021
beaches in calendar year 1997 to 2,823 beaches in calendar year 2002.  States and local entities
collect and report data on a calendar year basis.  The calendar year data are then used to support
fiscal year commitments  (e.g.  2002 calendar year data are used to support the FY 2003
commitments).  Starting in calendar year 2003, data for beaches along the coast and Great Lakes
must be reported to EPA as a condition of grants awarded under the BEACH Act3.  EPA reviews
the advisory entries and  responses to the survey  to ensure the information is complete, then
follows-up with the state or local government to  obtain additional information where needed.

Methods, Assumptions and Suitability:  The data are a. census of beach-specific advisories or
closures issued by the reporting state or local governments during the year. Performance against
the target is tracked using a simple count of the  number of beaches responding to the survey and
the advisory or closure actions taken. Thus the data are suitable for the performance measure.

QA/QC Procedures:   Since 1997, EPA has distributed a standard survey form, approved by
OMB,  to  coastal and  Great Lake state and county environmental and public  health  beach
program officials in hard copy by mail.  The form is also available on the Internet for electronic
submission.   In calendar year  2002, voluntary  survey  responses  included 30 percent from
counties, 32 percent from cities, 20 percent from states, 10 percent from regional or districts, and
2 percent  from federal entities.   When a state  or local official enters data over the Internet, a
password  is issued to  ensure the appropriate party is completing the survey. EPA reviews the
survey responses to ensure the information  is complete, then follows up with the state or local
government to  obtain additional  information where needed.  Currently the Agency  has
procedures for information collection  (see Office of Water's "Quality Management  Plan,"
approved September 2001 and published July 20024). However, because state and local officials
submitted the data voluntarily,  the  Agency cannot verify the accuracy of the information
provided.  Starting in 2003, coastal and Great  Lakes states receiving a BEACH Act grant are
subject to the Agency's grant regulations under 40 CFR 31.45.  These regulations require states
and  tribes  to  develop and implement  quality  assurance  practices for the collection of
environmental information.

Data Quality Review:  EPA reviews the survey responses to ensure the information is complete,
following up with the  state or local government to obtain additional information where needed.
The Agency cannot verify the accuracy of the voluntary information state and local governments
provide. There have been no external party reviews of this information.

Data Limitations: From calendar year 1997 to calendar year 2002, participation in the survey
and submission of data has been voluntary.  While the voluntary response rate has been high, it
has not captured the complete universe of beaches. The voluntary response rate was 92% in
calendar year 2002 (240 out of 261 contacted agencies responded). The number of beaches for
which  information was collected increased from 1,021 in calendar year 1997 to 2,823 in calendar
year 2002.  Starting in calendar year 2003 participation in the survey will become a mandatory

                                          11-45

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condition for grants awarded under the BEACH Act program to coastal and Great Lakes states.
However, coastal and Great Lakes states and local governments are not required to apply for a
grant.  Those coastal and Great Lakes states receiving a BEACH Act grant and subject to the
Agency's grant regulations under 40 CFR 31.45 are required to develop and implement quality
assurance practices  for the collection of environmental  information,  helping to assure  data
quality.

Error  Estimate:  Because submitting data has been voluntary, the database does not contain
information on 100% of beaches in the United States. No error estimate is available for this data
because the total number of beaches in the U.S. is unknown.

New/Improved Data or Systems: With the passage of the BEACH Act of 2000, the Agency is
authorized to award grants to states  to develop and implement monitoring and notification
programs consistent with federal requirements. As the Agency awards these  implementation
grants, it will require standard program procedures,  sampling and assessment methods, and data
elements for reporting.  To the extent that state governments apply for and receive these grants,
the amount, quality, and consistency of available data will improve. In FY 2005, EPA expects
the 35 coastal and Great  Lakes states to apply for grants to  implement monitoring and
notification programs.  The BEACH  Act also requires the  Agency to maintain a database of
national coastal  recreation water  pollution occurrences.   The  Agency has  fulfilled this
requirement by creating a new PRAWN database that includes this information. EPA has also
developed eBeaches5, a new Internet-based system for secure transmittal of beach advisory and
water quality data into PRAWN. This system will make it easier for states to accurately transmit
this information to EPA using the Internet.

References

1.      U.S. EPA. Office of Waters.  "Beach Notification Data User Guide." EPA-823-R-03-005.
       Washington, DC: EPA, January 2003. Available at
       http://www.epa.gov/waterscience/beaches/grants/2003/
2.      U.S. EPA. Office of Water. "National Health Protection Survey of Beaches".
       Washington, DC: EPA. Accessed May 23, 2003. Available only on the internet at
       http://uww.epa.gov/waterscience/beaches/
3.      U.S. EPA. Office of Water. "National Beach Guidance and Required Performance
       Criteria for Grants." EPA-823-B-02-004. Washington DC: EPA, June 2002. Available at
       ht!p:/Vwww.epa.gov/waterscience/beaches/guidance/all.
4.     U.S. EPA. Office of Water. "Quality Management Plan." EPA 821-X-02-001.
       Washington, DC: EPA, July 2002. Available at
       http://www.epa.gov/ow/programs/qmp.Julv2002.
5.      U. S. EPA. Office of Water. "eBeaches." Fact Sheet. EPA-823-F-03-009.
       Washington, DC, July 2003.  Available at
       http://wmv.epa.gov/waterscience/beaches/
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EFFICIENCY MEASURES\MEASUREMENT DEVELOPMENT PLANS

Drinking Water State Revolving Fund

       As a measure of output efficiency, the Agency tracks each fund's utilization rate, which is
the ratio of the cumulative loan agreement dollars to cumulative funds available for projects.
EPA will develop an outcome efficiency measure for the DWSRF.  Development of measures is
referenced in the program assessment Rating Tool  (PART)  summary in the Special Analysis
section.

Population in Indian Country Receiving Safe Drinking Water

       EPA is working to develop a measure  for drinking water on Tribal lands. The Agency is
committing, in the 2003 Strategic Plan, to being able to  measure and achieve: "by 2015, in
coordination with other federal agency partners, reduce by 50% the number of households on
Tribal lands lacking access to safe drinking water."  In order to measure progress toward that
target, in FY 2005  EPA will lead the development and issuance  of an interagency strategy,
coordinating with other federal partners.  The Agency will begin to collect data to establish an
accurate and complete baseline consistent with an interagency definition developed previously.
(EPA plans to begin reporting annual national  progress in FY 2006.) Due to the large number of
other agencies that  play key roles in directly or indirectly providing Tribal households with
access to safe  drinking water, achieving measurable progress under this strategic measure will
depend heavily on long-term inter-agency coordination and support.

Public Water System Supervision Grants

       EPA plans to develop an outcome efficiency measure for the Public Water System
Supervision Grants program as part of the FY 06 PART process.
COORDINATION WITH OTHER AGENCIES

       The 1996 SDWA amendments include a provision that mandates a joint EPA/Centers for
Disease Control (CDC) study of waterborne diseases and occurrence studies in public water
supplies.  CDC is involved in assisting EPA in training health care providers (doctors, nurses,
public health officials, etc.) on public health issues related to drinking water contamination and
there is close CDC/EPA coordination on research on microbial contaminants in drinking water.
EPA has in place a Memorandum of Understanding (MOU) and Interagency Agreement (IAG)
with the CDC in the Department of Health and  Human Services (DHHS) to implement this
provision.
       In implementing its source water assessment and protection efforts, the Agency coordinates
many of its activities with other Federal agencies. There are three major areas of relationships with
other agencies concerning source water assessments  and protection.

       Public Water Systems (PWSs). Some Federal agencies, i.e., USDA (Forest Service), DOD,
Department of Energy,  DOI (National Park Service), and USPS, own and operate public water
systems. EPA's coordination with these agencies focuses primarily on ensuring that they cooperate

                                         11-47

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with the states in which their systems are located, and that they are accounted for in the states'
source water assessment programs as mandated in the 1996 amendments to the SDWA.

       Data Availability, Outreach and Technical Assistance.  EPA coordinates with USGS (US
Geological Survey), USD A (Forest Service, Natural Resources Conservation Service, Cooperative
State Research, Education, and Extension Service (CSREES), Rural Utilities Service); DOT, DOD,
DOE, DOI (National  Park Service  and Bureaus  of Indian Affairs, Land Management,  and
Reclamation); DHHS (Indian Health Service) and the Tennessee Valley Authority.

       Collaboration with USGS.  EPA and USGS  have identified the need to engage in joint,
collaborative field activities, research and testing, data exchange, and analyses, in areas such as the
occurrence of unregulated contaminants, the  environmental  relationships affecting contaminant
occurrence, evaluation  of currently regulated contaminants, improved protection area delineation
methods, laboratory methods, and test methods evaluation.   EPA has an LAG with USGS to
accomplish such activities. This collaborative effort has improved the quality of information to
support risk management decision-making at all levels of government, generated valuable new data,
and eliminated potential redundancies.

       Collaboration with Public and Private Partners on Critical Water mfrastructure Protection.
EPA coordinates with other federal agencies, especially the newly-established Department of
Homeland Security as well as  the Centers for Disease Control  and Prevention, the Food and
Drug Administration, and the Department of Defense on biological, chemical, and radiological
contaminants, and how to  respond to their presence in drinking water and wastewater systems. A
close linkage with the FBI, particularly with  respect to ensuring the effectiveness of the ISAC,
will be continued.  The Agency is strengthening its working relationships  with the American
Water Works Association Research Foundation, the Water Environment Research Federation
and other research institutions to increase our knowledge on technologies to detect contaminants,
monitoring protocols and techniques, and treatment effectiveness.

       Collaboration with FDA. EPA and FDA have issued national fish consumption advisories
to protect  the public from  exposure to mercury in commercially and recreationally caught fish, as
well as fish caught for subsistence. EPA's advisory covers the recreational and subsistence fisheries
in fresh waters where states and tribes have not assessed the waters for the need for an advisory.47
FDA's advisory covers commercially caught  fish, and fish caught in marine waters.48  EPA is
working closely with FDA to ensure that the national fish consumption advisories issued by both
agencies, for mercury or other contaminants, provide consistent and the most current scientifically
sound advice to the public, and to ensure that these advisories support and  augment advisories
issued by states and tribes.

       Collaboration  with Other Federal  Agencies  on  Beach Monitoring and Public
Notification

       The BEACH Act requires that all federal agencies with jurisdiction over coastal and Great
Lakes recreation waters adjacent to beaches used by the public implement beach monitoring and
public notification programs.  These programs must be consistent with guidance published by
47. ibid, http://mapi.epa.gov/litml/federaladv
48. Ibid. http://map} .epa.gov/html/Fedetaladv
                                          11-48

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EPA49. EPA will continue to work with the U.S. Park Service and other federal agencies to ensure
that their beach water quality monitoring and notification programs  are technically  sound and
consistent with program performance criteria published by EPA.

       Collaboration with States on Pesticides Management

       States provide essential  activities  in  developing and implementing the Groundwater
Strategy.

       Collaboration with Other Federal Agencies on International Safe Drinking Water

       EPA's environmental mandate and expertise make it uniquely qualified to represent the
nation's environmental interests aboard. While the Department of State (DOS) is responsible for
the conduct of overall U.S. foreign policy, implementation of particular programs, projects, and
agreements is often the responsibility of other agencies with specific technical expertise and
resources. Relations between EPA and DOS  cut across several offices and/or bureaus in both
organizations.

       EPA works closely with a number of other Federal agencies with environmental, health,
or safety mandates. These include the Department of State, Department of Labor, Department of
Transportation, Department of Agriculture, Department of the Interior, Department of Health and
Human Services, and the Food and Drug Administration
STATUTORY AUTHORITIES

Beaches Environmental Assessment and Coastal Health Act of 2000 (BEACH)
Clean Water Act (CWA)
Emergency Planning and Community Right to Know Act (EPCRA) section 313 (42 U.S.C.
    1023)
EPCRA section 313 (42 U.S.C. 11023)
Federal Food, Drug and Cosmetic Act (FFDCA)
Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)
Food Quality Protection Act (FQPA) of 1996
National Environmental Policy Act, Section 102
Pollution Prevention Act (42 U.S.C. 13101-13109)
PPA (42 U.S.C. 13101-13109)
Safe Drinking Water Act (SDWA)
Water Resources Development Act (WRDA)
49. ibid. "National Beach Guidance and Required Performance Criteria for Grants.'
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                               Clean and Safe Water

OBJECTIVE: Protect Water Quality

      Protect the quality of rivers, lakes, and streams on a watershed basis and protect coastal
and ocean waters.

                                Resource Summary
                               (Dollars in Thousands)

Protect Water Quality
Environmental Program & Management
Science & Technology
Building and Facilities
Inspector General
State and Tribal Assistance Grants
Total Workyears
FY2003
Actuals
$2,346,144.8
$274,428.9
$3,541.2
$1,932.9
$12,836.2
$2,053,405.6
1,546.0
FY2004
Pres. Bud.
$1,647,043.1
$286,677.0
$0.0'
$1,887.0
$10,579.2
$1,347,900.0
1,610.2
FY 2005
Pres. Bud.
$1,645,669.9
$290,271.3
$0.0
$2,025.1
$10,623.5
$1,342,750.0
1,603.9
FY 2005 Req. v.
FY 2004 Pres Bud
($1,373.2)
$3,594.3
$0.0
$138.2
$44.3
($5,150.0)
-6.3
                                  Program Project
                                (Dollars in Thousands)

Categorical Grant: Wastewater Operator
Training
Categorical Grant: Nonpoint Source (Sec.
319)
Categorical Grant: Water Quality
Cooperative Agreements
Categorical Grant: Pollution Control (Sec.
106)
Infrastructure Assistance: Alaska Native
Villages
Infrastructure Assistance: Clean Water SRF
Marine Pollution
Surface Water Protection
Congressionally Mandated Projects
International Capacity Building
Administrative Projects
TOTAL
FY2003
Actuals
$0.0
$228,776.9
$18,155.7
$193,648.9
$41,810.6
$1,386,537.4
$7,070.0
$169,317.7
$208,639.3
$1,214.1
$90,974.2
$2,346,144.8
FY2004
Pres. Bud.
$0.0
$238,500.0
$19,000.0
$200,400.0
$40,000.0
$850,000.0
$12,049.9
$189,230.1
$0.0
$431.7
$97,431.4
$1,647,043.1
FY 2005
Pres. Bud.
$1,500.0
$209,100.0
$19,750.0
$222,400.0
$40,000.0
$850,000.0
$12,296.0
$190,785.3
$0.0
$372.0
$99,466.6
$1,645,669.9
FY 2005 Req. v.
FY 2004 Pres Bud
$1,500.0
($29,400.0)
$750.0
$22,000.0
$0.0
$0.0
$246.1
$1,555.2
$0.0
($59.7)
$2,035.1
($1,373.3)
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FY 2005 REQUEST

Results to be Achieved under this Objective

Improving Water Quality on a Watershed Basis

       Protecting Surface Water: In order to protect and improve water quality on a watershed
basis, EPA will focus its work with states, interstate agencies, tribes, and others in six key areas:
(1) strengthen the water quality standards program; (2) improve water quality monitoring; (3)
develop effective watershed plans and Total Maximum Daily Loads (TMDLs); (4) implement
effective nonpoint  source  pollution control programs; (5) strengthen  the National Pollutant
Discharge  Elimination  System (NPDES)  permit  program; and  (6)  effectively manage
infrastructure assistance programs.

       EPA expects to work with states, interstate agencies, and tribes in each of these areas, but
progress toward water quality  improvements will largely depend on success in integrating
programs on a watershed basis, engaging diverse stakeholders in solving problems, and applying
innovative ideas, such as water quality trading, to deliver cost-effective water pollution control.
The Clean Watersheds Needs Survey will  be a valuable tool to  support integrated pollution
control problem-solving and cost-effective improvements.

       Through an effective combination of these activities, the agency will progress toward our
2008 objectives of improving water quality such that standards are met in at least 600 of the
nation's watersheds, and the overall aquatic system health of coastal waters is improved.

       International Capacity: Our objective to protect the environmental quality of U.S. waters
involves efforts to protect freshwater lakes, rivers, and estuarine environments as well as  coastal
and ocean waters. U.S. waters are subject to  international sources of pollution and  EPA's
international efforts hi  this area are  focused  on the  development  and implementation of
international standards necessary to  address transboundary  sources of pollution, pollution
affecting shared ecosystems, and the introduction of non-indigenous nuisance (invasive) species
introduced through maritime shipping.  To reach these ends we are seeking to reduce the
successful introduction of invasive  species to U.S. waters  through the negotiation of effective
international standards addressing ballast water discharges, the use  of harmful anti-foulants, and
ah" emissions from ships.   In addition, we are isolating high-level radioactive wastes in
Northwest Russia that threaten the health of shared natural resources in the Arctic ecosystem.
Achievement of the objective  and strategic targets will enhance  U.S.  water quality,  human
health, and help stabilize aquatic ecosystems in North America.

Surface Water Programs and Clean Water State Revolving Fund

       Strengthen the Water Quality Standards Program: State  and authorized tribal water
quality standards provide the regulatory and scientific foundation for all water quality programs.
EPA derives the scientific baselines for contaminants in the form of "water quality criteria"
guidance  and identifies recommended approaches to support state  and tribal  adoption  and
implementation of water quality standards that protect water for uses such as swimming, public
water supply, and fish and wildlife.  EPA also has a statutory obligation to review and approve


                                           11-51

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state and tribal water quality standards, and to promulgate federal replacement standards, where
necessary.

       The Strategy for Water Quality Standards and Criteria50, developed in cooperation with
states and published in August 2003, reflects a wide-ranging review of the  water quality
standards program with federal, state, tribal and other partners. The Strategy identifies the ten
highest priority actions EPA must take to strengthen the regulatory and scientific foundation of
state and tribal water quality standards to improve water quality and address the most significant
new and emerging environmental problems.

       In FY 2005, EPA will focus the water quality standards and criteria program on directly
supporting Regional Offices, states and tribes to: (1)  reduce the backlog of water quality
standards actions; (2) establish  the highest attainable uses in water quality standards; and (3)
strengthen the scientific foundation on which to manage the water quality standards program.

       EPA's first priority is to reduce the current backlog and avoid future backlogs of final
EPA  action  on  water quality  standards.   Timely EPA action on  water quality standards
submissions will assure the most current standards are available for development of TMDLs and
permit limits, and the evaluation of monitoring data to determine whether standards are being
attained  consistent  with the
Agency's  strategic target.            Water Quality Standards Submissions
As shown in the  following            without EPA action in 90 days
graph,    improvement    is
needed.
       By providing direct
technical and administrative
assistance    to    regional
offices,  states  and  tribes,
EPA will strive to take final
action  on state  and tribal
water   quality   standards
submissions  within the 90-
day   statutory   deadline.
Completing  EPA's national
consultation  with the Fish
and Wildlife Service and the
National   Marine   Fishery
Service  on existing aquatic
life   criteria   under  the
Endangered   Species Act51
should facilitate meeting this
target.
          to
          o
          "v>
          .52
          .a
          3
          V)
          .Q
                       Date of reports
Source: U.S. EPA, Office of Water, Office of Science and Technology "May 2003 Water
Quality Standards Backlog Report
50 U.S. EPA. Office of Water. "Strategy for Water Quality Standards and Criteria." EPA-823-R-03-010. Washington, DC: EPA,
August 2003. Available at http://www.epa.goWwaterecience/standards/
51 Endangered Species Act, 16 U.S.C. 1531-1544.
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       Second,  to  address criticisms by  the  General Accounting Office52 and  the  National
Academy of Sciences53, EPA will provide clear, consistent technical outreach and support to
states and tribes in revising their standards, where necessary,  to reflect the highest attainable
uses.   These refined standards, based on sound science, technology and water quality-based
control evaluations, demonstrated benefits, and implementation strategies will enable states and
tribes to target the right waters for restoration.

       Finally, EPA will strengthen scientific and policy tools that states, tribes and regional
offices require to better manage the water quality standards and criteria program.  These tools
include new and revised water quality criteria for high priority chemicals identified by  a
systematic process in FY 2004; a sedimentation criteria strategy to address sediment and siltation
problems that  account   for more  water quality  impairments than  any  other pollutant54;
implementation  guidance and direct technical support to assist 25 states  in  adopting nutrient
criteria  for  fresh  waters  and to  45  states  in  adopting  numeric biological  criteria  or
implementation  methods for small rivers and streams by 2008.  Excess nutrients are one of the
top four leading causes  of water  quality impairments 55  and biological  criteria advance  the
scientific basis of designating aquatic life uses and measuring the success of cleanup efforts.56

       In a complementary effort, EPA will review risk assessment  methodologies applied to
chemical pollutants and pathogens in biosolids  generated  by wastewater treatment plants and
assess the need for new or revised standards to protect public health and the environment. This
effort will respond to the highest priority  recommendations in  the National Research Council's
2002 report, "Biosolids Applied to Land: Advancing Standards and Practices."

       Improve Water Quality Monitoring: Scientifically defensible  data  and information  are
essential tools hi the Information Age. Water  quality monitoring and assessment programs, the
essential underpinning of all aspects  of  the  watershed approach, must  be  strengthened and
upgraded across the country.

       In FY 2005, EPA requests funds for states to enhance existing monitoring programs so
that they can answer basic questions about the  condition of all state waters, contribute to a valid
assessment of national water quality, and make good decisions about water quality management
at appropriate scales.   Implementation  of this proposal  requires  a flexible approach that
recognizes the different stages of development and the different monitoring frameworks of state
programs.

       Increased performance  is the most critical component  of our FY  2005 request.  EPA
expects to achieve the results detailed in the chart below. In addition, this monitoring initiative
52 General Accounting Office. "Water Quality: Improved EPA Guidance and Support Can Help States Develop
Standards That Better Target Cleanup Efforts." GAO-03-308. Washington, DC: GAO, February 2003.
53 National Research Council. "Assessing the TMDL Approach to Water Quality Management." Washington, DC:
National Academy Press, 2001.
54 U.S. EPA. Office of Water, http://oaspiib.epa.gov/waters/national reptcontrol
55 Ibid, http://oaspub.epa.gov/waters/nattonal...reptcontrol
56 U.S. EPA. Office of Water. "Biological Assessment and Criteria: Crucial Components of Water Quality
Programs." EPA-822-F-02-006. Washington, DC: EPA, Summer, 2002. Available at
h;tp://www.epa.gov/waterscience.^biocriteria/technical

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will enable EPA, by the time the Agency revises  the  Strategic Plan  again in 2006, to write
Strategic Objectives that are scientifically defensible and measurable.
                                                          Current Status       Goal
              National picture of water quality condition:                     2003      3aseiine
                Estuaries
                Streams and small rivers
                Lakes
                Large rivers
                Near-shore coastline
                Wetlands
                Off-shore Marine
               All states begin implementing a comprehensive monitoring strategy
                                 o
                                                             S	N.
               All states submit comprehensive integrated reports including         (   }
               both probability-based results and site-specific information     ,     ^—
                                                            X—->.
               Full Integration of Federal Information Systems to maximize the       {   )
               use of existing and new data in management decisions             ^—'


               USGS, NOAA, and EPA research produces tools to improve         V^ J
               prediction, targeting, restoration decisions at multiple scales
                     Red     (    )   Yellow   &M&  Green
O
       The proposal includes two components: A state grants component targeted specifically to
enhance state monitoring programs and support and enhance of state data management systems
to support cost-effective management decisions at the state level.

       The largest component of the proposal is the state grants program.  Grants under this
component of the proposal  will be targeted  specifically to  support states' implementation of
monitoring strategies to most efficiently support the full range of decision needs.  The state
monitoring strategies include the use of the following tools:

•      Refinement of biological assessment methods and probability-based designs for different
       water resource types. These activities are key to generating comparable assessments of
       water resources at local, state and national scales.
•      Landscape models and other predictive tools.  These tools  are  used to indicate  where
       problems should be expected based on land use, discharges and non-point sources and
       help to indicate the level of vulnerability, likelihood of impairment and target priority
       actions.
•      Remote sensing and  innovative indicators of water quality to help to  streamline  where
       additional monitoring is needed to identify site-specific water quality conditions.
•      Targeted monitoring to provide data to implement local management actions like NPDES
       permits and TMDLs.  These existing targeted networks will be enhanced and refined by
       the contributions of other monitoring and assessment tools.
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       Effective data management is essential for successful state and national water monitoring
programs.  The second component of the proposal includes  funds to support improvement of
state  data management  systems  to ensure  that  that  water  quality-monitoring  data are
understandable and available to decision-makers,  stakeholders,  and public audiences.   The
proposal will target funds to support development of efficient mechanisms for data sharing to
enhance  collaboration and  promote  more informed decision making at the local,  state and
national  levels.   Critical system management needs also include  upgrades to Storage and
Retrieval System (STORET), the primary tool for storing and analyzing water quality data, to
improve system navigation and operation  and to enhance analysis  and presentation applications.
Other important activities include developing the capability  to exchange data with states and
other partners, and providing essential training and implementation support for users.

       Develop Effective Watershed Plans and TMDLs:  EPA is working with states, interstate
agencies, and tribes to foster a "watershed approach" as the guiding principle of clean water
programs.  At the watershed level, local managers can better understand the cumulative impact
of their activities, determine  the most critical problems, better allocate limited financial and
human resources, engage stakeholders, win public support, and make real improvements in the
environment.  EPA is encouraging states to develop watershed plans with a comprehensive
approach to  assessing water quality, defining  problems,  integrating management of diverse
pollution control, and financing projects. States have successfully adopted watershed approaches
that use a "rotating basin" approach (e.g., a cycle in which watersheds of the state are assessed
every five years) as well as other methods. Where necessary, states will upgrade their continuing
planning process to assure  development of a watershed approach.  EPA is also working with
tribes to support development of watershed approaches to protecting tribal waters.

       In watersheds where water quality standards are not attained, states will be developing
TMDLs.  Some impaired waters are isolated segments that can be addressed individually.  The
vast majority of impaired waters,  however,  are clustered  on a watershed basis.  EPA  is
encouraging states to develop TMDLs for these waters on a watershed basis. Watershed-based
TMDLs are less expensive to develop and create the opportunity  for innovations such as water
quality trading and watershed-based permitting.  While supporting state watershed plans, EPA
will continue work with states to develop TMDLs consistent  with  state TMDL development
schedules and court-ordered deadlines. States and EPA have made  significant progress in the
development and approval of TMDLs and expect to maintain the current pace of about 3,000
TMDLs per year.

       EPA will continue to provide the modeling tools that  states need to develop TMDLs by
incorporating technical  improvements  and  new  science  into  Better Assessment Science
Integrating Point and Nonpoint Source (BASINS), a multipurpose environmental analysis system
for performing watershed and water quality based studies.  EPA will also provide technical
support and training to states for the use of BASINS to develop TMDLs.

       Water Quality Trading:  In FY 2005, EPA will support, through a $4 million set-aside
within the existing Targeted Watershed Grants program, pilot projects designed to demonstrate
the effectiveness of market-based approaches.   Each pilot project will be required to establish
goals and document progress against a variety of criteria:

•      What progress is made toward water quality standards?

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•      How does this progress compare to estimated progress using traditional approaches?
•      What cost  savings were achieved,  as  compared to  the  estimated cost of traditional
       approaches (e.g., for TMDL implementation)?
•      What ancillary environmental benefits are realized beyond required reductions in speci c
       pollutant loads, such as wetlands restoration?

       Pilot projects will offer the opportunity to establish new criteria by which to judge the
effectiveness of various  approaches.  A key area for investigation will be that of cost savings.
Anecdotal  information  suggests  that cost  savings provided by  trading  programs can be
significant.  Trading among point sources in Connecticut is expected to save over $200 million
dollars in reducing nitrogen loads to  Long Island Sound over a 14-year period. After its first
year, the Connecticut program has achieved more nitrogen  reductions than expected and cut
nearly six years off the projected timeline for meeting water quality standards.

       Control Nonpoint Source Pollution:  Watershed plans and TMDLs will focus pollution
control  efforts for impaired  waters  on  a range of pollution sources, including runoff from
nonpoint sources.  EPA will also support efforts of  states, interstate agencies, tribes, and other
federal agencies to implement management practices that will reduce levels of nonpoint source
pollution in both unpaired waters and  in surface waters and ground waters nationwide.

       A critical step  in this effort is  for EPA to forge strategic partnerships with a broad range
of agricultural interests at all levels. EPA will work with USD A to ensure that Federal resources,
including grants under section 319 of the Clean Water Act and Farm Bill funds, are managed hi a
coordinated way. As part of this effort, EPA will work with States to encourage the development
and implementation of watershed based plans, focusing on  watersheds with water quality
impairments caused by nonpoint sources.  These watershed plans are a mechanism to coordinate
monitoring and planning on a  watershed basis and will  build  a  foundation for effective
implementation actions using  federal  and other funding. EPA will also work cooperatively with
USDA to develop voluntary  nutrient management plans for animal feeding operations (small
operations  not covered by regulations) and to  implement riparian and stream bank  protection
measures over the next 5 years.

       We will continue to track the steady increases in the cumulative dollar value and number
of projects financed with Clean Water SRF loans to prevent polluted runoff.  Properly managed
onsite/decentralized systems are an important part of the Nation's wastewater infrastructure, and
EPA will encourage state, tribal, and local governments  to adopt voluntary guidelines for the
effective management of these systems and use Clean Water Revolving Loan Funds  to finance
systems where appropriate.

       OMB  conducted an  assessment  of the nonpoint source  grants program  using the
Administration's Program Assessment Rating Tool  (PART).  The  program received adequate
scores  for  "purpose and design" and "program management," but was deemed deficient in
"strategic planning" and "program results/accountability," largely due to the unavailability of
adequate measures of program efficiency.

       Strengthen  NPDES Permit  Program  and Implement  National  Industrial  Regulation
Strategy:   The NPDES  requires  point  source  dischargers  to  be permitted and pretreatment
programs to control discharges from industrial facilities  to  the Nation's wastewater treatment
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plants.  This program provides a management framework for protection of the Nation's waters
through the control of billions of pounds of pollutants. EPA has five key strategic objectives for
the program over the next five years: (1) assure effective management of the permit program and
focus on permits that have the greatest benefit for water quality; (2) implement wet weather point
source controls, including the storm water program; (3) implement the newly developed program
for permits at  Concentrated   Animal  Feeding  Operations  (CAFO);  (4)  advance  program
innovations, such  as watershed permitting and  trading; and (5) develop  national industrial
regulations for industries where the risk to waterbodies supports a national regulation.

       In 2003, EPA began developing the "Permitting for Environmental Results  Strategy" to
address concern for the workload in permit issuance and the  health of state  NPDES programs.
The Strategy focuses limited resources on the most critical environmental problems by targeting
three  key areas:  developing and strengthening systems to ensure the integrity of the program;
focusing headquarters, Regions and States on environmental results in the permitting program;
and fostering efficiency in  permitting program operations.  Underpinning all three areas is the
need  for increased quality and quantity of
data, including modernization of the Permits
Compliance System (PCS) and integration
of PCS with other environmental databases.
Program performance  will  be assessed by
this data, which will include permit issuance
information,  compliance and  enforcement
information, and other related water quality
program measures. Beginning in FY 2004,
EPA will make comprehensive assessments
of NPDES program integrity and  track the
implementation of follow-up actions.
                                                Percentage of Current NPDES Permits*
                                              *Each year, 90% of all NPDES permits are considered current and,
                                              beginning in 2005, 95% of high priority permits are also current,
                                              achieving loading reductions of approximately 130 billion pounds.
                                              Source: U.S. Environmental Protection Agency, Office of Enforcement
                                              and Compliance Assistance; Permit Compliance System; Web-site:
                                              www.epa.gov/oeca/planning/data/water/pcssys.html
       EPA is working with  states, tribes,
and other interested parties to strengthen the
permit program in several other key areas
that  will have significant water  quality
benefits. EPA recently finalized new rules
for discharges from CAFOs and EPA will
work with states to assure that  permits cover
most CAFOs by 2008. In addition, over the next five years, EPA expects that 100% of NPDES
programs will have issued  general permits requiring storm  water management programs for
Phase  II municipalities  (MS4s) and requiring storm  water pollution  prevention  plans for
construction sites covered by Phase II of the storm water program.  Finally, EPA and  states will
monitor the percentage of  control mechanisms that establish pretreatment requirements for
significant industrial users that discharge to publicly owned treatment works and for categorical
industrial users of non-pretreatment treatment works.

       Recent articles in The Washington Post and The New York Times, withdrawal petitions,
and  the  permit  backlogs  indicate  that  States  are  struggling  with  NPDES  program
implementation. In addition, the universe of facilities is  increasing ten-fold due to new program
requirements to permit CAFOs and additional sources of storm water. To assist States with the
increasing workload, we are  requesting a $5 million increase for Section 106 Grants.
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       Most industrial facilities discharging directly to waterbodies or to wastewater treatment
plants have permit limits or pretreatment controls based on national regulations. In FY 2005,
EPA will implement the next round of setting priorities, consistent with the final plan published
by  EPA, as required by  section  304(m)  of the  CWA,  for technology-based water  quality
improvements.57   In  consultation with the public, EPA will also establish program priorities
based on sound  science and the  potential for cost-effective risk reduction.   In  addition to
evaluation of regulatory options,  EPA will  consider other  approaches  (including clarifying
guidance, commitments to voluntary reductions, environmental management systems, promotion
of innovative technology, and permit writer support).

       Support Sustainable Wastewater Infrastructure:   Much  of the  dramatic progress in
improving water  quality is directly attributable to investment in wastewater infrastructure—the
pipes and facilities  that  treat the Nation's wastewater.   But  the job  is  far  from over.
Communities are  challenged  to  find the fiscal  resources  to  maintain and replace aging
infrastructure, to meet growing infrastructure demands fueled by population growth, and to
secure their infrastructure against threats.  The Clean Watersheds Needs Survey 2000 documents
many of these  needs  and provides  the foundation  for much  of the agency's  wastewater
infrastructure work. Work is underway on the next survey, which is planned for release in late-
2005.

       Clean Water State Revolving Funds (CWSRFs) provide low interest loans to help finance
wastewater treatment facilities and other water quality projects.  These projects are critical to the
continuation of the public health and water quality gains of the past 30 years. As of early 2004,
the federal government had invested almost $21 billion in the CWSRFs. The revolving nature of
the funds and substantial additions from states have magnified that investment so that $47 billion
has been available for loans.58  The CWSRF program measures and tracks the average national
rate at which available funds are loaned, assuring that the fund is working hard to support water
quality infrastructure.  Recognizing the substantial remaining need for wastewater infrastructure,
EPA expects to continue to provide significant annual capitalization to the CWSRFs through
2011.   This continued  federal investment in SRFs along with  other traditional sources of
financing  (including  increased  local  revenues)  will  result in  significant  progress  toward
addressing the Nation's wastewater treatment needs.
57 U.S. EPA. "Effluent Guidelines Planning Process Draft Strategy for National Industrial Regulation" 67 FR 71165 (Nov. 29,
2002)
58 Clean Water State Revolving fund National Information Management System. US EPA, Office of Water, National
Information Management System Reports: Clean Water Waters Revolving Fund (CWSRF). Washington; DC. Available at
http://www.epa.gov/r5water/cwsrf/pdf.

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                   Number of Clean Water State Revolving Fund Projects that
                                 have Initiated Operations
             12,000-1
             10,000-
             8,000-
             6,000-
             4,000-
             2,000-
                     1999
                              2000
                                       2001
                                                2002
                                                         2003
                                                                   2004
                Source: U.S. EPA, Office of Water, Spreadsheet Maintained by the Office of Water,
                January 2004.

       Over the next five years, EPA will work with CWSRFs to meet several key objectives:
fund  projects  designed  as  part of  an  integrated  watershed  approach;  link projects to
environmental results through the use of scientifically-sound water quality  and public health
data; maintain the  CWSRFs' excellent fiduciary condition; and continue to track the increasing
numbers of states  that have developed  integrated priority lists addressing nonpoint source
pollution and estuaries protection projects in addition to wastewater projects, to make CWSRF
funding decisions.

       Another important approach to closing the gap between the need for clean water projects
and available funding is to use sustainable infrastructure management to assure that water and
wastewater infrastructure investments are tailored to the needs of the watershed, well capitalized,
and  well maintained.   Sustainable Management  Systems, such as asset  management  and
environmental management systems, prolong the lives of existing treatment systems.  EPA will
work to promote and institutionalize Sustainable Management Systems.  EPA also intends to
work toward recognizing and promoting sustainable infrastructure management through our
awards and recognition programs and our outreach programs, including the clearinghouses and
industry information sources we help to support. Further, we will support efforts to explore new
sustainable techniques through Water Quality Cooperative Agreements-funded demonstration
projects.

       To meet the challenges posed by the infrastructure gap, EPA proposes two initiatives to
help lower infrastructure costs — sustainable infrastructure initiative and water efficiency market
enhancement program.
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       Even with affordable, flexible financial assistance through the CWSRF, the Agency's
September 2002  Clean Water  and Drinking Water Infrastructure "Gap" Analysis projects a
multi-billion dollar gap in capital infrastructure financing over the next 20 years.59 Successfully
closing this gap will require more than federal financial assistance:  it will require a broader,
sustained and more focused effort from the Agency to enhance the sustainability of wastewater
treatment  systems.  As  a result,  in FY 2005 the Agency will  implement a Sustainable
Infrastructure  Leadership initiative  in partnership with  wastewater utilities.  Through  this
initiative, EPA and its partners  will identify leaders in the utility industry who have established
best practices in  wastewater  asset  management, innovations, and efficiency, and  who are
interested in employing watershed-based approaches  to managing water resources.  EPA also
will work closely with States, utilities and other stakeholders to develop a strategy to facilitate
the voluntary adoption of these best practices by approximately  1,000 utilities. The initiative
will be designed to support sustainable wastewater utilities that are able to maximize the value of
clean water by improving system performance at the lowest possible cost.

       The proposed water labeling program,  which will be  based on the  highly successful
Energy Star Products  Program, will promote  recognition of water-efficient products.   This
program will give consumers a reference tool to identify and select water-efficient products, such
as faucets, showerheads,  and landscape irrigation devices.  The purpose of the program is to
reduce national water and wastewater infrastructure needs by reducing projected water demand
and wastewater flows allowing  deferral or downsizing of capital projects. In addition to reduced
infrastructure needs, the  Agency  can anticipate many environmental benefits that assist in
meeting clean  and safe  water goals, such as  maintaining  stream flows, protecting aquatic
habitats, avoiding overdrawn aquifers, conserving sources of supply, and mitigating drought
impacts. This program could help to reduce energy usage associated with water savings.

       The 2002 World Summit in Johannesburg adopted the goal of reducing the number of
people lacking access to safe drinking water and basic sanitation by 50 percent by 2015.  EPA
will contribute to this work through its support for development of sanitation facilities in Indian
country and Alaskan native villages using funds set aside from the CWSRF.  Other federal
agencies, such as DOI and USD A, also play key roles in addressing this problem.  In addition,
Mexico Border infrastructure  projects, described  under Goal 4: Healthy Communities  and
Ecosystems, will improve  access to basic sanitation.

       The Clean Water SRF PART review conducted in 2003 found that the program purpose
is clear and designed to have a significant impact on a well-identified need.  It also found the
program to be a very competent  national financial  resource for State infrastructure projects
targeted at compliance with water quality standards and rated the Federal management of that
program as excellent.  The review, however, did challenge the Agency to develop performance
measures  that  demonstrate  more  directly  the impact  of  the  program  on water quality
improvement.

       Provide Sustainable Communities Assistance:  EPA works to  provide rural and small
communities and special populations with the  information  and tools they need to sustain
themselves as healthy and successful communities.
59 U.S. Environmental Protection Agency. 2002. The Clean Water and Drinking Water Infrastructure Gap Analysis. Washington,
DC: Government Printing Office.

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       Onsite/Decentralized wastewater treatment systems,  generally  referred to  as septic
systems, are widely used in rural and small communities, serving approximately 25% of the U.S.
population and used in about one-third of all new housing and commercial development.60  They
are important  elements of the nation's sustainable  water quality infrastructure.   However,
onsite/decentralized systems that are  improperly sited,  designed,  installed,  operated and
maintained threaten human health and water quality. This problem affects, directly or indirectly,
the success of all major EPA water quality programs.  EPA will provide national direction and
support to improve the performance of decentralized systems through upgrading professional
standards of practice and institutionalizing the concept of sustainable management.  In March
2003   the  agency   published   Voluntary  National   Guidelines   for   Management   of
Onsite/Decentralized Wastewater Treatment Systems, and EPA will encourage states to  adopt
and abide by these guidelines.

       Of the more than 16,000 Publicly Owned Treatment Works (POTWs) in the U.S., 12,500
discharge less than 1  million  gallons per day of wastewater.61  The Wastewater  Operator
Training Program has compiled an enviable record of success in assisting these small POTWs  on
the verge  of, or recently in, noncompliance with their wastewater discharge permits.   The
program's only requirement is  the facilities' willingness to work with a trainer to correct  its
problems.  To date the  program has helped more than 7,000 POTWs, and 9 of 10 assisted have
achieved  permit compliance,   resulting  hi  unproved water  quality and reduced  need  for
enforcement actions.62

       The Agency  works to  manage   grant assistance  to  1,570 Congressional special
appropriations water and wastewater projects  with total appropriations of more than $4.1 billion
through FY 2003.63

Infrastructure Assistance: Alaskan Native Villages

       EPA also provides direct grants to help address the water and wastewater infrastructure
needs of Alaska Native Villages, and works  closely with the Indian Health Service to identify
priority projects for funding in Indian Country.  This work is authorized under the Indian set-
aside grant program under Title VI of the Clean Water Act.

Categorical Grants: Section 106 Grants and Water Quality Cooperative Agreements

       Section 106 of the Clean Water Act authorizes the Agency to provide grants to states,
tribes and interstate agencies  to help fund key programs  for the prevention, reduction, and
elimination of surface and ground water pollution from point and nonpoint sources (NPS) and for
enhancing the ecological health of the  Nation's water.  These grants support State  efforts to
restore impaired watersheds (TMDLs) including all facets of this program, i.e., pre-TMDL needs
such as monitoring and assessment and standards development, development of TMDLs and
60 U.S. Department of Commerce; U.S. Census Bureau; 1990 Census and U.S. Department of Commerce; U.S. Census Bureau;
American Housing Survey for the U.S.-1995; issued September 1997.
61 U.S. Environmental Protection Agency, Office of Enforcement and Compliance Assistance; Permit Compliance System; Web-
site: www.epa.gov/oeca/planning/data/water/pcssys.html.
62 U.S. Environmental Protection Agency, Office of Wastewater Management; National Operator Training and Technical
Assistance Program Tracking System.
63 U.S. Environmental Protection Agency; Office of Wastewater Management, Special Appropriations Act Projects and Programs
Tracking System.

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post-TMDL implementation and restoration; implementing integrated wet weather strategies in
coordination with the NFS programs; and developing source water protection programs.  Tribes
will continue to conduct watershed assessments and .will maintain and improve their capacity to
implement water quality programs through monitoring, assessments, planning, and standards
development.

       Through the Water  Quality Cooperative Agreement Program, the Agency continues to
support the creation of unique and innovative approaches to address requirements of the NPDES
program, with special emphasis on wet weather activities. In addition, this grant program has
long supported other programmatic activities such as sustainable management systems for water
pollution control and various other program innovations.

Marine Pollution

       Improving Coastal and Ocean Waters: Coastal and ocean waters are environmentally and
economically valuable to the Nation.  Key programs focused on coastal waters and critical to
improving these waters are: assessing coastal conditions; reducing vessel discharges; controlling
coastal nonpoint pollution; managing dredged  material; managing non-indigenous invasive
species; and supporting international marine pollution control. By 2013, EPA, in cooperation
with other Nations, other Federal agencies, and state and local governments, will reduce the rate
of increase in the number of invasions by non-native invertebrate and algae species of marine
and estuarine waters.

       In addition, coordinating our efforts with those of other federal agencies, states, tribes,
and public and private parties is essential. Improving coastal waters will depend on successful
implementation of pollution controls in inland watersheds. Progress in protecting and restoring
coastal waters is also directly tied to geographically focused projects,  such as the Chesapeake
Bay Program, the Gulf of Mexico Program, and the National Estuary Program.  These programs
are described under Goal 4: Healthy Communities and Ecosystems.

       Assessing Coastal Conditions:  Progress in meeting these strategic targets will be tracked
through the National Coastal Condition Report, created in  2002 as a cooperative project of EPA,
NOAA, USD A, and DOI.  The Report describes the ecological and environmental condition of
U.S. coastal waters  according to a number of key parameters.  EPA and other federal agencies
will review changing conditions and  periodically issue updated assessments  of the health of
coastal waters. In support of assessment of coastal waters, EPA is also working on indices for
measuring the health  of coral reefs, providing information that would assist states, tribes and
local governments in  anticipating and responding to harmful algal blooms, and improving the
monitoring network for air deposition.  EPA also supports a national marine debris monitoring
program, which is developing statistically sound information on the sources  of marine debris in
order to better address this environmental and human health hazard.

       Reducing Vessel Discharges:  A focus of EPA's efforts to improve the health of the
Nation's ocean and  coastal waters will be to enhance regulation of discharges of pollution  from
vessels.  Key work includes development of discharge standards for cruise ships operating in
Alaskan waters; cooperation with the Department of Defense to develop discharge standards for
certain armed forces vessels; and assessing the effectiveness of current regulations for marine
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sanitation devices and promoting technological advancement in those devices to reduce sewage
discharges from vessels.

       Implementing Coastal Nonpoint Source Pollution Programs: Rapid population growth in
coastal  areas can result  in  significant increases  in pollution  from both point and nonpoint
sources. For the past  10 years, EPA and NOAA have  been working with coastal and Great
Lakes states to improve and expand programs to reduce nonpoint source pollution hi the "coastal
zone" identified by states. Most states have used federal grant funds to develop coastal nonpoint
programs, and EPA and National Oceans and Atmospheric Administration (NOAA) are working
with the  remaining  states  to complete the program by providing  continued  support  and
assistance. These nonpoint control programs, focused on the critical coastal zone areas, will play
an important role in accomplishing the environmental improvements sought for coastal waters by
2008.

       Managing Dredged Material:  Several hundred  million cubic yards of sediment are
dredged from waterways, ports, and harbors each year to maintain the Nation's navigation
system for commercial, national defense, and recreational  purposes. All of this sediment must be
disposed of safely. EPA  and the U.S. Army Corps of Engineers (COE) share responsibility for
regulating how and  where  it is done.   EPA and  COE will focus additional resources on
improving the way disposal of dredged material is managed, including evaluating disposal sites,
designating  and monitoring  the sites, and reviewing and concurring on the disposal permits
issued by COE.

       EPA is also working with its state partners and other federal agencies, including COE, the
Fish and Wildlife Service, and the Coast Guard, to ensure that comprehensive dredged material
management plans, which include provisions for the beneficial re-use of dredged material, are
developed and implemented in major ports and harbors.

       Managing Invasive Species: One of the greatest threats to U.S. waters and ecosystems is
the uncontrolled spread  of  invasive  species.  Invasive  species commonly enter U.S. waters
through the discharge of ballast water from ships. Although the  majority of these organisms
never become established in a new ecosystem, an increasing number of invasive species are
adversely  impacting the environment  and local economies and posing risks to human health. In
response, EPA is assisting the U.S. Coast Guard in its efforts to develop ballast water exchange
requirements and ballast  water discharge standards to control  aquatic invasive species and is
addressing this issue at the international level. Negotiations are  currently underway for a global
treaty designed to reduce or prevent further introductions of invasive aquatic species through
ballast water.

Supporting International Marine Pollution Control

       EPA works closely with the Coast Guard, NOAA,  and the Department of State to address
environmental threats to  U.S. waters that require international cooperation.  Recognizing the
effect of international shipping on the quality of the U.S.  waters, EPA is heavily involved in the
negotiation  of  international  standards at  the International  Maritime Organization.   These
international standards  are one of the principal mechanisms EPA  is using to address invasive
aquatic  species, tributyltin and  other harmful antilfoulants, and marine  debris.  EPA is  also


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engaged in cooperative efforts to reduce other sources of pollution affecting the Gulf of Mexico,
Great Lakes, Arctic Ocean, Straits of Florida, and the Wider Caribbean Basin.

International Capacity Building

       To achieve our objective of preventing further degradation of the marine environment,
EPA  leads  and supports  specific multilateral treaty negotiations  through the International
Maritime Organization and other  fora aimed at mitigating marine pollution at the global and
regional level. Regional and global efforts are specifically designed to enhance the effectiveness
of existing domestic environmental controls  to reduce pollution of U.S. waters resulting from
international shipping and other transboundary vectors and  thereby protect important  natural
resources as well as the public health of the U.S. population.

       Specific measures for FY 2005 will help advance our longer-term efforts to prevent or
reduce  environmental  damage associated with tributlytin, vessel emissions and  discharges,
invasive species, and ocean dumping.  Projects aimed at protection of the Arctic ecosystem are
focused on  preventing and reducing  environmental contamination from  spent nuclear fuel in
Northwest Russia. In this  context, we expect to achieve a 25 percent  reduction of high-level
sources of radioactive waste by 2005.64 In addition, on-going efforts to address vessel and land-
based sources of marine pollution in the Wider Caribbean will result in Regional water quality
and marine  habitat improvements  that include economic benefits.  Finally, our involvement in
global negotiations is critical to maintain needed flexibility in domestic rulemaking  and other
environmental policy mechanisms.
FY 2005 CHANGE FROM FY 2004
EPM
       +$3,000,000 to support the monitoring initiative.  Also funded through increases to the
       STAG account,  this initiative will support improvements to the nation's water quality
       monitoring capability.  These resources will provide technical support to states and tribes
       as they adopt new comprehensive monitoring strategies, as well as improvements to
       water quality data systems, including enhancements to data-sharing capabilities.

       +$500,000 for a sustainable infrastructure initiative to support partnerships with States,
       the utility industry, and  other  stakeholders to enhance the operating efficiencies of
       drinking water and wastewater utilities.

       +$800,000 for the Water Labeling Program.   These  resources will be  used for the
       development and implementation of a market enhancement program that  will promote
       recognition of water-efficient products.

       -$3,500,000 from the development of effluent guidelines.  By the end of FY 2004, the
       Agency is scheduled to complete the last of nearly 20 effluent guidelines that had been
64 4000 high-level fuel assemblies to be removed from a total of 16,000 assemblies in Northwest Russia (2001 baseline): Bellona
Report (Volumes 1-3), The Bellona Foundation, 1994, 1996, and 2001.

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       subject to court-ordered deadlines. In FY 2005, the Agency does not anticipate the same
       number of rulemaking starts as previously experienced under the consent decree and will
       therefore shift 9 FTE to support high priority work such as water quality monitoring,
       permitting, and coastal activities.

•      -$1,500,000 for wastewater operator training grants which reflects a change in the
       appropriation for this program.

•      There are increases for payroll, cost of living and enrichment for existing FTE.

STAG

•      +$17,000,000 will fund grants to states and tribes under the water quality monitoring
       initiative to  support  adoption of new  comprehensive monitoring  strategies  and the
       development of statistically valid monitoring networks  to  help  target activities  and
       determine of water quality status and trends.  These funds will be awarded under CWA
       S.I06, and will be explicitly earmarked for monitoring work.

•      +$5,000,000 for Section 106 Grants.  These resources will assist States in implementing
       the CAFO and Stormwater rules.

•      +$1,500,000 for wastewater  operator training grants  which reflects a change  in the
       appropriation for this program.

•      +$1,500,000 for the water infrastructure  management initiative to support demonstration
       grants to promote innovative ways for municipalities to manage water infrastructure.

•      -$29,400,000 from Section 319 Nonpoint Source Grants hi recognition of increased
       resources for USDA conservation programs.  The Administration supports focusing the
       Section 319 program to  provide a basis for implementation of agricultural nonpoint
       source controls using USDA program funding.
ANNUAL PERFORMANCE GOALS AND MEASURES

Watershed Protection

In 2005     500 of the Nation's watersheds have water quality standards met in at least 80% of the assessed water
           segments.

In 2005     Water quality standards are folly attained in over 25% of miles/acres of waters by 2012, with an
           interim milestone of restoring 2% of these waters - identified in 2000 as not attaining standards - by
           2005.

In 2004     By FY 2005, Water quality will improve on a watershed basis such that 625 of the Nation's 2,262
           watersheds will have greater than 80 percent of assessed waters meeting all water quality standards, up
           from 500 watersheds in 1998.
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Performance Measures:                          FY2003       FY2004      FY2005
                                                 Actuals      Pres. Bud.    Pres. Bud.
Watersheds  that have  greater  than  80% of                  5000FY05)        500          8-digitHUCs
assessed  waters meeting  all  water  quality
standards.
Waterbodies  (river   miles   and  lake  acres)                                      2           % Miles/Acres
identified in 2000 as not attaining Water quality
standards, are fully attained.

Baseline:    As of 2002 state reports 453 watersheds had met the criteria that greater than 80% of assessed waters
            met all water quality standards. For a watershed to be counted toward this goal, at least 25% of the
            segments in the watershed  must be assessed within the  past 4 years consistent with assessment
            guidelines developed pursuant to section 305(b) of the Clean Water Act. In 2002, 0% of the 255,408
            miles/and 6,803,419 acres of waters identified on 1998/2000 lists of impaired waters developed by
            States and approved by EPA under section 303(d) of the Clean Water Act.

Dredged Material/Ocean Disposal

In 2005     Improve ratings reported on the national  "good/fair/poor"  scale of the National Coastal Condition
            Report for: coastal wetlands loss by at least 0.1 point; contamination of sediments in coastal waters by
            at least 0.1 point; benthic quality by at least 0.1 point; & eutrophic condition by at least 0.1 point

In 2005     Scores for  overall aquatic system health of coastal waters nationally, and in each coastal region, is
            improved on the "good/fair/poor" scale of the National Coastal Condition Report by at least 0.1 point

Performance Measures:                          FY2003       FY2004      FY2005
                                                 Actuals      Pres. Bud.    Pres. Bud.
Score for overall aquatic system health of coastal                                     2.5          Scale score
waters nationally, and in each coastal region, is
improved (cumulative).
Maintain water clarity and dissolved oxygen in                                   4.3 / 4.5        Scale score
coastal  waters at the  national levels reported in
the 2002 National Coastal Condition Report

Improve  ratings  reported  on  the  national                                      1.5          Scale score
"good/fair/poor" scale of the National Coastal
Condition Report for coastal wetlands loss
Improve  ratings  reported  on  the  national                                      1.4          Scale score
"good/fair/poor" scale of the National Coastal
Condition Report for contamination of sediments
in coastal waters

Improve  ratings  reported  on  the  national                                      1.5          Scale score
"good/fair/poor" scale of the National Coastal
Condition Report for benthic quality

Improve  ratings  reported  on  the  national                                      1.8          Scale score
"good/fair/poor" scale of the National Coastal
Condition Report for eutrophic condition


Baseline:   National rating of "fair/poor" or 2.4 where the rating is based on a 5-point system where 1 is poor and
            5 is good and is expressed as an aerially weighted mean of regional scores using the National Coastal
            Condition Report indicators  [i.e., water clarity, dissolved oxygen, coastal wetlands loss,  eutrophic
            conditions, sediment contamination, benthic health, and fish tissue contamination]. The 2002 National
            Coastal Condition Report indicated 4.3 for water clarity and 4.5 for dissolved oxygen, 1.4 for coastal
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           wetlands loss; 1.3 for contamination of sediments in coastal waters; 1.4 for benthic quality; & 1.7 for
           eutrophic condition.

State/Tribal Water Quality Standards

In 2005     In coordination with other federal partners reduce, by 11%, households on tribal lands lacking access
           to basic sanitation.

In 2005     Water quality in Indian country will be improved at not less than 35 monitoring stations in  tribal
           waters for which baseline data are available (i.e., show at least a 10% improvement for each of four
           key parameters: total nitrogen, total phosphorus, dissolved oxygen, and fecal coliforms.)

In 2004     Assure that States and Tribes have  effective, up-to-date water quality standards programs adopted hi
           accordance with the Water Quality Standards regulation and the Water Quality Standards program
           priorities.

Performance Measures:                         FY2003      FY2004      FY2005
                                             Actuals      Pres. Bud.    Pres. Bud.
States with  new  or revised  water quality                 ,   20                       States
standards that EPA has reviewed and approved
or  disapproved  and   promulgated  federal
replacement standards.

Tribes with water quality standards adopted and                    33                       Tribes
approved (cumulative).

Number  of  monitoring stations (for which                                  35         Stations
baseline  data on 4 key parameters are available)
where water quality is improved.

Number  of households on tribal lands lacking                                  11         %
access to basic sanitation.                                                                Households


Baseline:   The performance measure of state submissions (above) thus represents  a "rolling annual total" of
           updated standards acted upon by EPA, and so are neither cumulative nor strictly incremental.  EPA
           must review and approve or disapprove state revsisions to water quality standards withing 60-90 days
           after  receiving the  state's package.  In  2002,  there will be four  key parameters available at 900
           sampling stations in Indian country. In 2002, Indian Health Service indicates that 71,000 households
           on Tribal lands lack access to basic sanitation.
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure;  Watersheds in which at least 80% of the assessed water
segments meet water quality standards.

Performance Database:  The Watershed Assessment Tracking Environmental Results System
(WATERS) (1) is  used to summarize water  quality  information at the watershed level.  For
purposes of this national  summary, Awatersheds " are  equivalent to 8-digit  hydrologic unit
codes (HUCs), of which  there are 2,262  nationwide. WATERS  is a geographic  information
system that  integrates many existing  data management tools  including  the STOrage  and
RETrieval  (STORET)  database  (2),  the  Assessment Database  (3)  and  the Water  Quality
Standards database (4).  Water quality information available through WATERS includes data
submitted by the states under Clean Water Act  (CWA)  Section 305(b).  These data are submitted
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to EPA every two years, with annual electronic updates. The U.S.EPA summarizes these data in
the National Water Quality Inventory Report. (5)

Data Source:  State CWA Section 305(b) reporting.  The data used by the states to assess water
quality and prepare CWA Section 305(b) reports come from multiple sources (state monitoring
networks, United States  Geological Survey (USGS), local governments, volunteer monitors,
academic institutions, etc.) as well as predictive tools such as water quality models.  Raw data
may be entered by states and other sources into STORET.  States compare available ambient
monitoring data to their water quality standards to  arrive at assessment results.  Assessment
results are  then entered  into the  Assessment Database.  EPA uses the assessment results to
present a snap-shot  of water quality  as reported by the  states  (the National Water  Quality
Inventory Report), but because state methods and water quality standards vary widely, does not
use the assessment results to report trends in water quality.

Information on each state' s assessment methodology can be obtained from its 305(b) report, and
raw data entered into STORET must meet metadata standards.

Methods, Assumptions and Suitability: States employ various methods of ambient water data
collection, including: 1) Direct sampling of chemical, physical,  and biological parameters using
targeted site selection (usually, where problems are most likely or where water is heavily used);
2) Predictive models of water quality  standards attainment; 3)  Direct sampling at statistically-
valid, probability-based sampling networks  (in  its  early  stages  in  a number of states);   4)
Compilation of data from outside sources such as volunteer monitors, academic institutions, and
others.   EPA-supported models  include  BASINS,  QUAL2E,  AQUATOX, and  CORMIX.
Descriptions   of  these   models   and  instructions  for  their  use  can  be  found  at
www.epa.gov/OST/wqm/.

The  standard operating procedures and  deviations from these methods for data sampling and
prediction processes are stored by states in the STORET  database.  EPA aggregates  state
assessment information by watershed (as described above) to generate the national performance
measure. State assessment results describe attainment of designated uses in accordance with  state
water quality standards and thus represent a direct measure of performance.  State CWA Section
305(b) data are suitable for providing a snapshot of the ambient water quality conditions that
exist across the nation, in that subset of waters that are assessed. However, nationally aggregated
data are currently not suitable for year- to-year comparisons.  As  states update their monitoring
programs to include probabilistic monitoring, EPA will be able to conduct nationally aggregated,
year-to year comparisons.

QA/QC Procedures: QA/QC of data provided by states in their  individual assessments (under
CWA  Section 305(b)) and accessed  through WATERS  is  dependent on  individual  state
procedures.  Numerous system level checks are built into  the data sources in WATERS, based
upon the business rules associated with the water quality assessment database.  States are given
the opportunity to review the information to ensure it accurately reflects the data they submitted.
Detailed data  exchange  guidance and training are  also provided to the states.  Sufficiency
threshold for inclusion in this measure requires that 20% of stream miles in an 8-digit HUC be
assessed. The Office of Water Quality Management Plan (QMP), renewed every five years, was
approved in July 2002 (6).  It describes the quality system  used by the Office of Water and


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applies to all environmental programs within the Office of Water and to any activity within those
programs that involves the collection or use of environmental data.

Data Quality Review:   Numerous independent reports have cited that  weaknesses in water
quality monitoring  and reporting undermine  EPA's  ability  to depict the condition of the
Nation's waters, to make trend assessments, and to support scientifically-sound water program
decisions. The most recent reports include the 1998 Report of the Federal Advisory Committee
on  the  Total  Maximum  Daily Load (TMDL) Program  (7), the March  15, 2000 General
Accounting Office report  Water Quality: Key Decisions Limited by Inconsistent and Incomplete
Data (8), the 2001  National Academy of Sciences Report, Assessing the TMDL Approach to
Water Quality Management  (9),  a  2002 National  Academy of Public Administration Report,
Understanding What States Need to Protect Water Quality (10), and EPA's Draft Report on the
Environment  (11).  Water quality  reporting under Section  305(b) has been identified as an
Agency-Level weakness under the Federal Managers Financial Integrity Act.

In response to these evaluations, EPA has been working with states and other stakeholders to
improve: 1) data coverage, so that state reports reflect the condition of all waters of the state; 2)
data consistency, to facilitate  comparison and aggregation of state data to the national level; and
3) documentation, so that  data limitations and discrepancies are fully understood by data users.

The Office  of Water  has issued  several recent  guidance documents designed to increase
consistency and coverage in state monitoring, assessment and reporting.  In November 2001,
EPA issued its  Integrated Reporting guidance (12) which calls on  states  to  integrate the
development and submission  of 305(b) water quality reports and Section 303(d) lists of impaired
waters. The Integrated Report will enhance the ability of water quality  managers to display,
access, and integrate environmental data and information from all components of the water
quality  program. In July 2002, EPA  released  the  Consolidated  Assessment and Listing
Methodology - a Compendium of Best Practices (13), intended to facilitate  increased consistency
hi monitoring program design and in the data and decision criteria used to support water quality
assessments.   And  hi March 2003, EPA issued  Elements of a State  Water Monitoring and
Assessment Program (14) which describes ten elements that each state water quality-monitoring
program should contain and a ten-year time frame for implementing all elements. As part of each
state' s monitoring strategy, state data will be accompanied by quality assurance plans.

EPA has enhanced two existing data management tools (STORET and the Assessment Database)
so that they include documentation of data quality information. EPA's WATERS tool integrates
many databases including STORET, the Assessment Database, and the Water Quality Standards
Database.  These integrated  databases facilitate comparison and understanding of differences
among state standards, monitoring activities, and assessment results.

Data Limitations:  Data are not representative of comprehensive  national water quality
assessments because most states  do not yet employ a monitoring design that characterizes all
waters in each reporting cycle.  States, territories, and tribes collect data and information on only
a portion of their water bodies because it is prohibitively expensive to monitor all water bodies.
Furthermore, states  do not use a consistent suite of water quality indicators to assess attainment
with water quality standards.  For example, indicators of aquatic life use support range from
biological community  condition to  levels of dissolved  oxygen  to concentrations of toxic

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pollutants.  State water quality standards themselves vary from state to state.  State assessments
of water quality may include uncertainties associated with  derived or modeled data.  These
variations in state practices and standards limit how the assessment reports they provide can be
used to describe water quality at the national level and prevent the agency from aggregating
water quality assessments at the national level with known statistical confidence.

Error Estimate:  No error estimate is available for this data.

New/Improved Data or Systems: The Office of Water is currently working with states, tribes
and other Federal agencies to improve the database that supports this management measure by
addressing the underlying methods of monitoring water quality and assessing the data. Also, the
Office of  Water  is  working with partners to  enhance monitoring  networks to  achieve
comprehensive coverage  of all waters, use a consistent suite of core water quality indicators
(supplemented with additional indicators for specific water quality questions), and document key
data elements, decision criteria and assessment methodologies in electronic  data systems.  The
Office of Water is using  a variety of mechanisms to implement these improvements including
data management systems, guidance,  stakeholder meetings,  training and technical assistance,
program reviews and negotiations.

EPA  is working with states to enhance  their monitoring and assessment programs,  with  a
particular emphasis on the probabilistic approach.  These enhancements, along with improving
the quality and timeliness of data for making watershed-based decisions, will greatly improve
EPA' s ability to use state assessments in consistently portraying national conditions and trends.
Specific state refinements include developing rigorous biological criteria to  measure the health
of aquatic communities (and attainment with the aquatic  life use) and designing probability-
based monitoring designs to support statistically-valid inferences about water quality. The  EPA
Environmental Monitoring and Assessment Program (EMAP) design team has been instrumental
in helping  states design  the monitoring networks and analyze  the  data. Initial efforts  have
focused on streams, lakes and coastal waters. Wetlands and large rivers will be  targeted  next.
States are implementing these changes incrementally and in conjunction with traditional targeted
monitoring. At last count, 16 states have adopted probability-based monitoring designs,  several
more are evaluating them, and all but 10 are collaborating in an EMAP study.

The Agency's FY2005 budget request includes a significant increase to support water quality
monitoring improvements.  A state grants component will  support states'  implementation of
monitoring strategies, including refinement of biological  assessment methods and probability-
based designs for different water resource types,  landscape models and other predictive tools,
remote sensing and innovative indicators  of water quality to help streamline where additional
monitoring is needed, and targeted monitoring to provide data to implement local management
actions such as National Pollution Discharge  Elimination Program (NPDES) permits and  Total
Maximum  Daily Loads  (TMDLs)   The initiative will also  support improvement of data
management systems to ensure that  water  quality  monitoring data are understandable and
available to all  who need it.  Included here are upgrades to STORET, to improve  system
navigation and operation  and to enhance analysis and presentation applications. Funds will also
support enhancing the capability to exchange water quality data with states.
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References:

1.   WATERS available on-line at www.epa.gov/waters.  Aggregate national maps and state
     and  watershed  specific data for this measurement are  displayed numerically and
     graphically in the WATERS database.
2.   STORET available online at www.epa.gov/STORET.  Links to user guide and descriptions
     of the database can be found here.
3.   Assessment Database information available at http://www.epa.gov/waters/305b/
4.   Water Quality Standards Database information available at www.epa.gov/wqsdatabase/
5.   U.S. EPA, Office of Water. National Water Quality Inventory, 2000 Report. Washington,
     D.C: August 2002. EPA 841-R-02-001.  Available at www.epa.gov/305b/2000Report
6.   U.S. EPA. Office of Water Quality Management Plan. Washington, DC: July 2002. EPA
     831 -X-02-001. Available at http://www.epa.gov/ow/programs/qmp_Jury2002.pdf
7.   National  Advisory Council for Environmental Policy and Technology.  Report of the
     Federal Advisory Committee on the Total Maximum Daily Load Program.  1998.  EPA
     100-R-98-006. Available at http://www.epa.gov/owow/tmdl/faca/tofc.htra.
8.   General Accounting Office. Water Quality: Key EPA and State Decisions  Limited by
     Inconsistent and Incomplete Data. Washington, DC: March 15, 2000. GAO/RCED-00- 54.
9.   National  Research Council,  Committee  to Assess  the  Scientific Basis  of the  Total
     Maximum Daily Load Approach  to Water Pollution Reduction. Assessing the TMDL
     Approach to Water Quality Management.  National Academy Press, Washington, DC:
     2001.
10.  National Academy of Public Administration. Understanding What States Need to Protect
     Water Quality.   Washington, D.C: December 2002.  Academy Project No.  2001- 001.
     Available at www.napawash.org
11.  U.S. EPA.  Draft Report on the Environment 2003.  July 2003.  EPA  260-R-02-006.
     Available at http://www.epa.gov/indicators/roe/index.htm
12.  U.S.  EPA, Office of Water.  " Integrated Water  Quality  Assessment  and Report
     Guidance."       November       19,       2001.              Available       at
     http://www.epa.gov/owow/tmdl/2002wqraa.html
13.  U.S. EPA, Office of Water.    " Consolidated Assessment and  Listing Methodology.
     Toward a Compendium of Best Practices. " (First Edition).  Washington, DC:  July  31,
     2002. Available at www.epa.gov/owow/monitoring/cahn.html
14.  U.S. EPA, Office of Water.  Elements of a State  Water Monitoring and  Assessment
     Program.  Washington, DC:  March 2003.   EPA  841-B-03-003.   Available  at:
     www.epa. go v/o wow/monitoring

FY 2005 Performance Measure: Water quality standards are fully attained in  miles/acres
of waters identified in 2000 as not attaining standards.

Performance Database: The Watershed Assessment Tracking Environmental Results System
(WATERS- found at http://www.epa.gov/waters/) is the overarching Agency tool that is used to
store water quality information related to this measure.  Within WATERS, resides a section
entitled "303(d) Information," compiled  from the comprehensive data set we refer to as States'
Listings of Impaired Waters as Required by Clean Water Act Section 303(d) (referred to here in
brief as "303(d) lists"). This tool (found at http://mvw.epa.gov/owow/tmdl/stams.htnil) is used
to generate reports that identify individual unpaired waters as well as an aggregation of impaired
waters that is the total impaired river-miles  and lake-acres.  This information, combined with

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information  and comment  from EPA Regions and states, yields  the baseline data for this
measure— river-miles and lake-acres of unpaired waters in 2000.  As Total Maximum Daily
Loads (TMDL) are developed, updated and entered into the National TMDL Tracking System
(NTTS), and water bodies are no longer counted as impaired, the associated restored river-miles
and lake-acres are removed from the year 2000 impaired totals.  Changes will be recorded in
reports, scheduled every 6  years  (e.g. future reporting years 2006 and  2012), as percentage
improvements to water body impairment.

Data Source:  The underlying data source for this measure is State 303(d) lists of their unpaired
water bodies.  Each state is required to submit this list to EPA every two  years. States prepare
the lists using actual water quality monitoring data, probability-based monitoring information,
and  other  information  and  knowledge  the  state has,  in  order  to  make  comprehensive
determinations addressing the total extent of the state's water body impairments.  Once EPA
approves a state's 303(d) list, EPA enters the information into WATERS, as described above.

Methods, Assumptions, and Suitability:  States employ various analytical methods of data
collection, compilation, and reporting including: 1) Direct water  samples of chemical, physical,
and  biological parameters; 2)  Predictive models  of water quality standards attainment; 3)
Probabilistic models of pollutant sources; and 4) Compilation of data from volunteer groups,
academic interests and others. EPA supported models include BASINS, QUAL2E, AQUATOX,
and CORMDC.  Descriptions of these models and instructions  for their use can be found at
wwu-.epa.gov/OST/wqm/.   The  standard operating procedures and deviations from  these
methods  for data sampling and  prediction  processes are  stored by states in the  STORET
database. EPA aggregates state data by watershed (as described above) to generate the national
performance measure. State provided data describe  attainment of designated uses in accordance
with state water quality standards and thus represent a direct measure of performance.   State
CWA Section 305(b) data are suitable for providing a snapshot of the ambient water quality
conditions that exist across the nation; however, nationally aggregated ambient water quality
data are currently not suitable for year-to-year comparisons.  As states update their monitoring
programs to include probabilistic monitoring, we will be able to do nationally aggregated, year-
to year comparisons.

QA/QC Procedures: QA/QC of data provided by states pursuant to individual state 303(d) lists
(under CWA Section 303(d)) is dependent on individual state procedures. EPA Regional staff
interact with the states during the process of approval of the lists and before the information is
entered into the database to  ensure the integrity of the  data.  The Office of Water Quality
Management Plan (QMP), renewed every five years, was approved in July 2001. EPA requires
that each organization prepare a document called a  quality management  plan  (QMP)  that:
documents  the organization's quality policy; describes its  quality system;  and identifies the
environmental programs to  which the quality system applies (e.g., those  programs involved in'
the collection or use of environmental data).

Data Quality Review:  Numerous independent reports have cited that weaknesses in monitoring
and reporting of monitoring data undermine EPA's ability to depict the condition of the Nation's
waters and to support scientifically-sound water program decisions.  The most recent reports
include the  1998 Report of the Federal Advisory Committee on the Total Maximum Daily Load
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(TMDL) Program65, the March 15, 2000 General Accounting Office report Water Quality: Key
Decisions Limited by Inconsistent and Incomplete Data66, the 2001 National Academy of Sciences
Report Assessing the TMDL Approach  to Water Quality Management67   and EPA's Draft Report on the
Environment.6S

In response to these evaluations, EPA has been working with states and other stakeholders to
improve: 1) data coverage,  so that state reports reflect the condition of all waters of the state; 2)
data consistency to facilitate comparison and aggregation of state data to the national level; and
3) documentation so that data limitations and discrepancies are fully understood by data users.

First, EPA enhanced  two existing data management tools (STORET and the Assessment
Database) so that they include documentation of data quality information.

Second, EPA  has developed a GIS  tool  called WATERS that integrates many databases
including STORET,  the Assessment database,  and a new water quality  standards  database.
These integrated databases facilitate comparison and understanding of differences among state
standards, monitoring activities, and assessment results.

Third,  EPA  and states have developed a guidance document: Consolidated Assessment and
Listing  Methodology - a Compendium of Best Practices69 (released on the Web July 31, 2002 at
www.epa.gov/owow/monitoring/calm.html)  intended  to facilitate  increased  consistency  in
monitoring program  design and the data and decision  criteria used  to  support water quality
assessments.

Fourth, the Office of Water (OW) and EPA's regional offices have developed the Elements of a
State Water  Monitoring and Assessment Program, (August 2002)  which  is currently under
review by our state partners.  This guidance describes ten elements that each state water quality-
monitoring program should contain and proposes time-frames for implementing all ten elements.

Data Limitations:  Data may not precisely  represent the extent of unpaired waters because
states do not yet employ a monitoring design that monitors all waters in each 303(d) listing
cycle.   States also do  not use a consistent suite of water quality indicators to assess attainment
with water quality standards. For example, indicators of aquatic life use support range from
biological  community assessments to levels  of dissolved  oxygen  to concentrations  of toxic
pollutants. These variations in state practices limit how the 303(d) lists provided by states can be
used to describe  water quality at the national level. States, territories and tribes collect data and
information on only a portion of their water bodies. There are differences among their programs,
sampling techniques, and standards.
65 Report of the Federal Advisory Committee on the Total Maximum Daily Load Program. 1998.  National Advisory Council
for Environmental Policy and Technology. EPA Number 100R98006. National Center for Environmental Publications]
66 Water Quality: Key EPA and State Decisions Limited by Inconsistent and Incomplete Data. March 15,2000. RCED-00-54 and
Water Quality: Inconsistent State Approaches Complicate Nation's Efforts to Identify Its Most Polluted Waters. January 11, 2002
67 Assessing the TMDL Approach to Water Quality Management. 2001. Committee to Assess the Scientific Basis of the Total
Maximum Daily Load Approach to Water Pollution Reduction, Water Science and Technology Board, National Research
Council
68 US. EPA. Draft Report on the Environment 2003. July 2003.  EPA 260-R-02-006. Available at
http://Mww.epa.gov/rndicators/roe/mdex.htm
  U.S. EPA. (July 31, 2002). Consolidated Assessment and Listing Methodology. Toward a Compendium of Best
Practices. (First Edition).  Washington, DC: Office of Wetlands, Oceans, and Watersheds. Available on the
Internet: Monitoring and Assessing Water Quality www.epa.gov/ovvow/nionitoring/cato.html

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State assessments of water quality may include uncertainties associated with derived or modeled
data.  Differences  in monitoring designs among and within states prevent the agency from
aggregating water quality assessments at the national level with known statistical confidence.
States, territories, and authorized tribes monitor to identify problems and typically lag times
between data collection and reporting can vary by state.

Error Estimate: No error estimate is available for this data.

New/Improved Data Systems:  The Office of Water has been working with states to improve
the guidance under which 303(d) lists are prepared.  EPA issued new listing Guidance on July
21, 2003 entitled Guidance for 2004 Assessment, Listing, and Reporting Requirements Pursuant
to Sections 303 (d) and 305 (b) of the Clean Water Act (Guidance).  The Guidance may be found
at: http://www.epa.gov/owow/tmdl/tmdlO 103/index.html. The Guidance addresses a number of
issues that states and EPA  identified during the 2002 listing cycle.  Among these issues  are
minimum data requirements and sample size requirements in making listing determinations, use
of probability-based sampling  in  the state's monitoring program,  improved year-to-year
consistency in  a choice  of a geo-referencing scheme, and use of a consistent method of
segmenting water bodies and denoting changes to the segmentation between listing cycles.

References: Cited in body of text above.

FY 2005 Performance Measure; Water quality in Indian country

Performance  Database:   National  Water  Information System (NWIS), the USGS water
monitoring database will be used to report on this measure (http://waterdata.us.gs,gov/nwis/usa).
Although NWIS  has  not  yet  adopted  the EPA Tribal Identifier Data Standard  (see
http://oaspiib.epa.gov/edr/epastd$.stattup), the AIEO Tribal Information Management System
(https://oasint.rtpnc.epa.:gov/TIMS/ ) (phone 202-564-0303 for  password access)  can extract
records from NWIS on the basis of reservation boundaries, enabling" both data systems to
provide tribal water quality data for this performance measure. NWIS records monitoring dates,
so time series analysis will be a key feature of the Indian country water quality performance
measure^

Data Sources: NWIS merges of all USGS  district offices,  and consists primarily of data
collected by USGS field staff, either on a regular basis or for special projects.

QA/QC  Procedures:  Quality assurance  for  the Indian country water quality performance
measure  depends on the quality of the USGS NWIS data  system.  Documentation for NWIS
quality   assurance  may   be  found   at:  (http://water.usgs.gov/pubs/dds/  wqn96cd/html/
wqn/qasure/qasure.htm).

Data Quality Reviews:  Two quality reviews are envisioned.  The first will be a comparison of
the federal data, in aggregate, and the water quality data reported by the tribes in CWA §106
water quality assessment reports.  The review will be conducted for five tribal reservations. The
second is a comparison of Storage and Retrieval System (STORET) data,  EPA's repository of
water quality  monitoring  data reported by states,  tribes, other grantees, and other federal
agencies,  and NWIS  water quality data for similar tribal geographic areas; this  review is

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dependant upon future increased STORET use by tribes.  The results of these two data quality
reviews will allow AIEO to estimate a range of variation for the data used in the water quality
assessments.

Data Limitations:  The data collected for the tribal water quality performance measure are
limited by the accuracy of the reservation boundary files used by AIEO. The files, IND-3, are
distributed  by the Bureau of Indian Affairs Geographic Data  Service Center,  (Internet  site
disabled). There are minor variations between  the files provided by BIA and other sources of
tribal boundary files.  In an analysis of selected reservation boundaries, AIEO has determined
that there is an approximately a 5% variation between the files from the BIA IND-3 dataset, and
the   Census    Tiger    files    of    reservation   boundaries    (http://www.census.gov/
geo/www/cob/bdyjHlesJhitml).

Error Estimate:   AIEO estimates an approximately 5% error hi the identification of water
monitoring sites that fall inside reservation boundaries because of errors in tribal boundaries and
latitude  and longitude of monitoring sites, resulting in errors in the extraction of geographic
records from NWIS. The overall error of the performance measure is expected to be the percent
variation hi the water quality data from different sources (STORET, water quality assessment
reports from tribes, NWIS) compounded  by the error introduced by inaccuracies in boundary
files. AIEO expects  a 5% or greater error in the analysis, depending on the magnitude of the
variation of the data from the different sources used.

New/Improved Data or Systems:  As NWIS adopts a tribal identifier code, AIEO will no
longer have to rely on geographic extraction of data records and that  source of error will be
eliminated. To date, USGS has not announced plans to tribally index their water quality data
systems.

A key improvement in EPA's ability to assess  tribal water quality will be the enhancement of
tribes' usage of STORET.  Plans  are in place to improve outreach and technical assistance to
tribes and states to encourage greater use of the system, and to use  STORET's capabilities to
upload local information to the national data warehouse.  This will facilitate determinations of
water quality status and trends nationwide and in Indian country in particular.  EPA will also
work to incorporate into STORET the agency's new Tribal Identifier Data Standard to further
facilitate assessing tribal water quality information.

References:

1.   U.S.     Environmental      Protection     Agency.          STORET     Database.
     http://www.epa.gov/STORET/.
2.   U.S. Environmental Protection Agency. American Indian Environmental Office.  TIMS
     Database https://oasint.rtpnc.epa.gov/TIMS/
3.   U.S.   Geological   Survey.     Water  Resources  Division.      NWIS   Database
     http://waterdata.usgs.gov/nwis/usa.
4.   Bureau of Indian Affairs. (2000).  IND-3 Indian Reservations.  Geographic Data Service
     Center. Lakewood. CO. (internet site disabled).
5.   U.S. Census Bureau. Geographic Division.  2000 Census Tiger Files of American Indian
     Areas http://www.census.gov/ geo/www/cob/bdv_files.html


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FY 2005 Performance Measure:  In coordination with other federal partners, reduce the
number of households on tribal lands lacking access to basic sanitation.

Performance Database:  The American Indian Environmental Office (AIEO) has been in the
forefront of  working with multiple  agencies  on  a federal  interagency  Tribal  Enterprise
Architecture.  Much of the work falls under the auspices of OMB Circular A-16 on coordination
of  federal  geographic data  across federal agencies  (OMB  2003).  The  Tribal  Enterprise
Architecture includes access to a wide variety of data and information from several agencies and
numerous sources within those agencies. It also includes several AIEO and jointly- developed
applications to determine environmental performance in Indian country for a variety of specific
purposes, including strategic planning and annual reporting under the Government Performance
and Results Act.  The components of the Tribal Enterprise Architecture create a broad, multi-
variant view of the environmental conditions and programs in Indian country. EPA will track the
status of federal and other  basic sanitation infrastructure projects being undertaken in Indian
country.

Data Sources:  AIEO Tribal Enterprise Architecture will be linked to the Indian Health Service
(IHS) Sanitation Tracking  and Reporting System (STARS)  database, which will be used to
measure tribal access to basic sanitation in real-time.  IHS STARS database, Level 4 (unsafe
water or sanitation) and Level  5 (unsafe water and sanitation) information will be analyzed.

While the information from the STARS database is reported hi the aggregate to Congress on an
annual basis, the real-tune data allow EPA to link IHS codes with EPA  tribal codes on a project-
by-prpject basis. It is anticipated that a significant percentage of other federal activity, besides
EPA and IHS,— which provides tribes access to basic sanitation is captured in the IHS STARS
system. AIEO will make the appropriate interagency inquiries to verify that all data are captured.

QA/QC Procedures:  All the  data used hi the Tribal Enterprise Architecture project have quality
assurance and metadata documentation prepared by the originating agency.  AIEO works to
standardize data and use metadata  standards as established  by the Federal Geographic  Data
Committee.

Data Quality Reviews:  A unique feature of the Tribal Enterprise Architecture is the direct
incorporation of a data center for documentation of errors and correction of text  hi the various
data systems. This system, called the TIMS Data Center, provides for the systematic review and
submission of corrections for 1) numeric and factual data from the national data  systems used,
and 2) qualitative statements  made hi a textual context.  In  the case of corrections to national
databases, AIEO monitors submissions, and forwards them to appropriate systems administrators
who make decisions on changes based on their criteria

Data Limitations:  AIEO  uses  new geographic data mining technologies to extract records
based on the geographical coordinates of the data points. For example,  if a regulated facility has
latitude and longitude coordinates that place it hi the boundaries of the  Wind River Reservation,
then it is assigned to the Arapaho and Shoshone Tribes of the Wind  River Reservation.  This
technique is extremely powerful, because it "tribally enables" large  numbers of information
systems which were  previously incapable of identifying tribes. This will be applied to all the
EPA databases. There are limitations, however.  When database records are not geographically
identified with latitude and  longitude, the technique does not work and the record is lost to the

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system.  Likewise, the accuracy of the method depends on the accuracy of the reservation
boundary files. EPA  continues to request up-to-date  and accurate  coverage  of reservation
boundaries and land status designations from other agencies

Error Estimate:  In an analysis of selected reservation boundaries, AIEO has determined that
there is a 5% variation between the Bureau of Indian Affairs' IND-3 reservation boundaries and
those  from  the United States  Census Bureau (e.g.,  U.S. Census Tiger  file  of reservation
boundaries). Another  source of error  comes from records that are not sufficiently described
geographically to  be  assigned to  specific tribes.  For some  agencies, such  as  USGS, the
geographic record is complete, so there are no errors from these sources. It is estimated that 20%
of the regulated facilities in EPA regulatory databases are not geographically described, and thus
will not be recognized by the AIEO methodology.

New/Improved Data  or Systems:  The technologies used by the Tribal Enterprise Architecture
are all new and state-of-the art. Everything is delivered securely on the Internet with no need for
special software or desktop data disks.  The geographic interface  is an ESRI  product called
ARC/IMS, which is a web-based  application, with a  fully  functional  GIS system that  is fully
scalable.  In FY  2003, the entire system will be rendered in 3D.  The Tribal Enterprise
Architecture uses XML protocols  to attach to and display  uiformation seamlessly and  in real-
time from cooperating agency data systems without  ever  having to download  the data to  an
intermediate server.

References:

1.   Office of Management and Budget (2003).  Circular A-16 Revised.
     http://www.whitehQuse,gQv/omb/circulars/aQ 16/aO 16_rey.html
2.   U.S. Environmental Protection Agency (1998). Office of Water Indian Strategic Plan.
3.   GAP Grant Tracking System,  http://gap.tetratech-ffx.com  (password available upon
     request)
4.   Tribal Enterprise Architecture http://everest.sdc-moses.com/TRIBAL/mdex3.html
     (password available upon request)
5.   Indian Health Service. Sanitation Tracking and Reporting System.
     http://wstars.geonorth.com (password available upon request)
6.   TIMS Data Center. http:.//it-tetratech-ffx.com/'tribal/ (password available upon request)
7.   U.S. Environmental Protection Agency. 2003.  Implementing EPA's Information  Quality
     Guidelines:   Guidance on Information Products Developed by the Office of the Chief
     Financial Officer.

FY 2005 Performance Measures: Prevent water pollution and protect aquatic systems so
that overall aquatic system health of coastal waters nationally, and in each coastal region, is
improved on the "good/fair/poor" scale of the National Coastal Condition Report.

Maintain water clarity and dissolved oxygen in coastal waters at the national levels reported in
the 2002 National Coastal Condition Report.

Improve ratings  reported on the national  "good/fair/poor"  scale of the National  Coastal
Condition Report for:  coastal wetlands loss by at least .1 points; contamination of sediments in


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coastal waters by at least .1 points; benthic quality by at least .1 points; & eutrophic condition by
at least .1 points

Performance Database:     EMAP/NCA   [Environmental   Monitoring  and  Assessment
Program/National   Coastal   Assessment]   database   (housed  EPA/ORD/NHEERL/AED,
Narragansett,   RI)(Environmental   Protection   Agency/Office    of   Research    and
Development/National Health  and Environmental Effects  Research Laboratory/Gulf Ecology
Division); pre-database information housed hi ORD/NHEERL facility in Gulf Breeze, FL (Gulf
Ecology Division) (pre-database refers to a temporary storage site for data where it is examined
for QA purposes,  has appropriate metadata attached  to  it and undergoes initial statistical
analyses); data upon QA acceptance and metadata  completion is transferred to  EMAP/NCA
database and is web available at www.epa. goy/emap/nca.

Data Source:  Probabilistic surveys of ecological  condition completed throughout the  Mid-
Atlantic and Gulf of Mexico by EPA's Office of Research and Development (ORD)  hi 1991-
1994, hi southern Florida hi 1995,  in the Southeast hi 1995-1997, hi the Mid-Atlantic in 1997-
1998, hi  each coastal state  in  2000-2004 (except Alaska and Hawaii), hi Alaska hi 2002 and
2004, hi Hawaii hi 2002 and 2004, and in Puerto Rico hi  2000 and 2004, and hi other island
territories (Guam,  American  Samoa  and U.S.>  Virgin Islands hi 2004).   Surveys collect
condition  information regarding water quality, sediment  quality and biotic condition at 70-100
sites/region (e.g., mid-Atlantic) each year of collection prior to 1999 and at 35-150 sites hi each
state or territory/year (site number  dependent upon state) after 1999. Additional sampling was
completed hi the  National Estuary  Programs, including all  individual national estuaries.
Additional NEP sampling included sufficient sites to increase total sites within NEP  boundaries
to 30 for a two-year period between 2000-2003.

This "third party" data is collected through a joint  EPA-State cooperative agreement and the
States  follow a rigid sampling and collection protocol following intensive  training by EPA
personnel. Laboratory processing is completed at either a state laboratory or through a national
EPA contract.  Both entities  are subject to  the development of a QAPP (either the National
Coastal QAPP or one of then- developments based on  this QAPP) and QA testing and auditing by
EPA.

Methods, Assumptions  and  Suitability:   The surveys are  conducted using a probabilistic
survey design comprised to  permit extrapolation of results to the entire target population (in this
case - all  estuarine resources of the specific  state) The design maximizes the spatial spread of
the sites and locating each site based on a specific latitude-longitude combination. The survey
utilizes an index sampling period (generally  late summer) to maximize encountering water
quality, sediment quality and biotic condition problems, if they exist.  Based on the  QAPP and
the field  collection manual, a  site  in a specific state is located by sampling vessel  via Global
Positioning System (GPS) and water quality is measured on board at multiple depths.  Water
samples are taken for chemistry; sediment samples are taken for chemistry, toxicity  testing and
benthic community assessment; and fish trawls are conducted to collect community fish data and
provide selected fish (target species) for analysis  of whole body and/or fillet contaminant
concentrations.  Samples are stored hi accordance with  field manual and shipped to the
processing laboratory.  Laboratories  follow QA plans and  complete analyses and provide
electronic information to state or EPA. For data not directly provided to EPA from laboratories,
state forward data to EPA. For data not provided directly to states, EPA forwards data to states.

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EPA analyzes data to assess regional condition and states analyze data to assess condition of
state-specific waters.   Results of analyses on a national and  regional basis are reported as
chapters in the National Coastal Condition Report series. The overall regional condition index is
the mean of the rating scores of the indicators used in successive versions of the Coastal
Condition Report (see last section). An improvement for one of the indicators by a full category
unit over the eight year period  will be  necessary  for the regional  estimate  to  meet the
performance measure goal (+0.2 over an eight year period).

       Assumptions:  (1) The underlying target population (estuarine resources of the United
States) has been correctly identified; (2)  GPS operation is successfully located; (3) QAPP and
field collection manuals are followed; (4) all samples can be successfully  collected; (5) all
analyses are completed in accordance with QAPP; and (6) all combinations of data into indices
are completed in a statistically rigorous manner.

       Suitability: By design all data are  suitable to be aggregated to the state and regional level
to  characterize  water quality, sediment quality,  and biotic condition.   Samples  represent
"reasonable", site-specific point-in-time data (not primary intention of data use) and an excellent
population representation of the entire resource (extrapolation to entire resource  supportable).
The intended use of the data is  the characterization of populations and subpopulations of
estuarine resources through time.  The data meets this expectation  and the  sampling design,
response design, analysis approach and reporting approach have been peer reviewed successfully
multiple  tunes.    The data  are  suitable for  individual year characterization  of condition,
comparison of condition across years, and assessment of long-term trends once sufficient data
are collected (7-10 years). Data are suitable for use hi National Coastal Condition calculations
for the United  States and its  regions  as  necessary to provide performance measurement
information.

QA/QC Procedures:  The sampling collection and  analysis of samples  are controlled by a
Quality Assurance Project Plan (QAPP) [EPA  2001] and the National Coastal Assessment
Information Management Plan (IMP)[EPA 2001]. These plans are followed by all twenty-three
coastal states and 5 island territories. Adherence to the plans are determined by  field training
(conducted by EPA  ORD), field audits (conducted  by EPA/ORD), round robin testing of
chemistry laboratories (conducted by EPA/ORD), overall systems audits of state programs and
national laboratory practices (conducted by EPA), sample splits (sent to reference  laboratories),
blind samples (using reference materials) and overall information systems audits (conducted by
EPA/ORD).  All states are subject to audits at least once every two years these controls at least
once every two years for audits, training  hi year 2000 and retraining sessions every two years,
and batch sample processing (including QA samples hi each batch) for laboratory analyses.

Data Quality Reviews: Data quality reviews have been completed in-house by EPA ORD  at the
regional and national level in 2000-2003  (National Coastal Assessment 2000-2003) and by the
Office of Environmental Information (OEI) hi 2003 (assessment completed in June, 2003 and
written report not yet available; oral debriefing revealed no deficiencies). No  deficiencies were
found hi the program. A national laboratory used hi the program (University of Connecticut) for
nutrient chemistry, sediment chemistry  and fish tissue  chemistry  is being  evaluated by the
Inspector  General' s Office  for inappropriate behavior and potential falsification  of laboratory
results in connection with other programs not related to NCA. A full investigation has not been
completed by the IG and hi the interim  has not determined any wrongdoing by the personnel
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associated with NCA. Our program has conducted an internal audit assessment and investigation
and could determine only  one finding, which  was an incorrect use of a chemical  digestion
method for  inorganic chemistry samples  (metals).   This finding has been  corrected and  all
samples "digested" incorrectly have been reanalyzed at no cost.

Data  Limitations:   Data limitations are few.   Because the data are collected hi a manner to
permit calculation of uncertainty and designed to meet a specific Data Quality Objective (DQO)
(<10% error in spatial calculation  for each state estimate annually), the results at the regional
level (appropriate for this performance measure) are within about 2- 4% of true values dependent
upon the specific sample type.  Other limitations as follows:  (a) even though methodology errors
are minimized by  audits, hi the first  year of the NCA program (2000) some errors occurred
resulting in  loss of some data.  These problems were  corrected hi 2001 and  no problems have
been observed since then,  (b) In some instances, (<5%) of sample results, a QA finding is
determined regarding the precision of a measurement (control mortality toxicity testing exceeds
limit detection  limit for a chemistry batch exceeds limit, etc.). In these cases, the  data are
"flagged" in the database so that users are aware of the .potential limitations,  (c) Because of the
sampling/ analysis design, the loss of data at a small scale (~ 10%) does not result in a significant
increase in uncertainty hi the estimate of condition. Wholesale data losses of multiple indicators
throughout  the U.S. coastal  states  and  territories  would be necessary  to invalidate the
performance measure,  (d) The only source  of external variability  hi year-to-year climatic
variation (drought  vs.  wet, etc.) and  the  only  source of internal variation is  modification of
reporting indicators (e.g., new indices, not a change in sample indicators collected and analyzed).
This internal reporting modification required a re-analysis of earlier information to permit direct
comparison  (e).  There is generally a 2-3  year lag from the tune of collection until reporting.
Sample analysis generally takes 1  year and analysis takes 1 year. Report production and peer
review generally take an additional year. (F) Data collections are completed annually;  however,
the EPA/ORD program for this collection will occur through 2004. After 2004, ORD will assist
OW as requested to provide expertise but the conduct of the surveys after 2004 will no  longer be
supported (financially) by EPA ORD.

Error Estimate: The estimate of condition (upon which the performance measure is determined
has an annual uncertainty rate of about 2-3% for national condition, about 5-7%  for individual
regional indicators (composite of all five states  data into a regional estimate), and about 9-10%
for individual state indicators.

New/Improved Data or Systems:

 (1)    Changes  have  occurred hi the  data underlying  the performance measure  based  on
       scientific review and development.  A change hi some reporting indicators has occurred
       hi order to  more  accurately represent the intended ecological process or function.  For
       example, a new eutrophication index was determined  for the 2000  data.  In order to
       compare  this new  index  to  the  1991-1994  data,  the  earlier data results  must  be
       recomputed using the  new technique.   This recalculation is  possible because the
       underlying data collection procedures have not changed.

 (2)    New national contract  laboratories have been  added every year based  on competition.
       QA  requirements are met  by  new facilities and  rigorous testing at these  facilities is
       completed before sample analysis is initiated. QA adherence and cross-laboratory sample
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       analysis has minimized data variability resulting from new laboratories entering the
       program.

 (3)    The only reason for the discontinuance of the National performance goal would be the
       elimination of the surveys after 2004.

       In order to continue to utilize the 2001 National Coastal Condition report as the baseline
for this performance measure, the original scores reported in 2001 have been re-calculated in the
pending 2004 report using the index modifications described above (#1). These "new" results
for the baseline  (re-calculated scores) are reported in  Appendix C of the pending report
scheduled for release hi fall 2004.
References:

1.   Environmental Monitoring and Assessment  Database (1990-1998) and National  Coastal
     Assessment   Database   (2000-    2004)   websites:    www.epa.gov/emap    and
     www.epa.gov/emap/nca (NCA data for 2000 is only data available at present)
2.   National Coastal Assessment. 2000-2003. Various internal memoranda regarding results of
     QA audits. (Available through John Macauley, National QA Coordinator NCA, USEPA,
     ORD/NHEERL/GED, 1 Sabine Island, Gulf Breeze, FL 32561)
3.   National  Coastal Assessment.  2001.  Quality  Assurance  Project Plan. EPA/620/R-
     01/002.(Available through John Macauley above)
4.   National Coastal Assessment. 2001. Information  Management Plan. EPA/620/R-01/003
     (Available through  Stephen Hale, NCA  IM Coordinator, ORD/NHEERL/AED,  27
     Tarzwell Drive, Narragansett, RI)
5.   U.S. Environmental Protection Agency. 2001. National Coastal Condition Report. EPA-
     620/R- 01/005.
6.   U.S. Environmental Protection Agency. 2004. National Coastal Condition Report II. In
     review Assigned Report Number EPA-620/R-04/001 (expected release date - fall 2004).
EFFICIENCY MEASURESVMEASUREMENT DEVELOPMENT PLANS

Clean Water State Revolving Fund

      As a measure of efficiency, the Agency tracks each fund's utilization rate, which is the
ratio of the cumulative loan agreement dollars to cumulative funds available for projects.

Non-point Source

      Efficiency measures are under development. Development of measures is referenced in
the Program Assessment Rating Tool (PART) summary in the Special Analysis section.

Nutrient Levels in Rivers and Streams

      Measure development is underway for phosophorus concentration trends. EPA        is
committed to reduce phosphorus levels hi major rivers, urban and farmland streams by 2008,
measuring progress via the percentage of USGS test sites for major rivers,  urban streams, and

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farmland streams at which phosphorus levels are below levels of concern established by USGS.
USGS is conducting additional monitoring from 2002 - 2005 within study areas in order to
identify trends in phosphorus concentrations.  However, the results of analysis of this second
round of data will not be available until approximately 2007, preventing its use as an annual
performance measure for FY2005.

Alaska Native Villages

       EPA plans to develop an efficiency measure for the Alaska Native Villages program as
part of the FY 06 PART process.
COORDINATION WITH OTHER AGENCIES

Watersheds

       Protecting and restoring watersheds will depend largely on the direct involvement of
many Federal agencies and state, Tribal and local governments who manage the multitude of
programs necessary to address water quality on a watershed basis.  Federal agency involvement
will include USDA (Natural  Resources  Conservation Service,  Forest Service,  Agriculture
Research Service), Department of the Interior (Bureau of Land Management, Office of Surface
Mining, United States Geological Survey (USGS), Fish and Wildlife, and the Bureau of Indian
Affairs), National  Oceanographic and Atmospheric  Administration (NOAA), Department of
Transportation,  and the Department of Defense (Navy, Army Corps of Engineers).  At the state
level, agencies  involved  in watershed management  typically include  departments of natural
resources  or the environment, public health agencies, and  forestry and  recreation  agencies.
Locally, numerous agencies are involved, including Regional planning entities such as councils
of  governments, as  well  as  local departments of environment, health  and  recreation who
frequently have strong interests in watershed projects.

National Pollutant Discharge Elimination System Program (NPDES)

       Since inception of the NPDES program under Section 402 of the  CWA, EPA and the
authorized states have developed  expanded relationships with various  Federal  agencies to
implement pollution controls for point sources.  EPA works closely with the Fish and Wildlife
Service and the National Marine Fisheries Service on consultation for protection of endangered
species through a  Memorandum of Agreement.  EPA works with the Advisory Council  on
Historic Preservation on National Historic Preservation Act implementation. EPA and the states
rely on monitoring data from  the U.S. Geological Survey (USGS)  to help confirm pollution
control decisions.  The Agency also works closely with the Small Business Administration and
the  Office of  Management and Budget to ensure  that regulatory programs are fair  and
reasonable. The Agency coordinates with the National Oceanic and Atmospheric Administration
(NOAA) on efforts to ensure that NPDES programs support coastal and national estuary efforts;
and with the Department of Interior on mining issues.
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Joint Strategy for Animal Feeding Operations

       The Agency is working closely with the USDA to implement the Unified National
Strategy for Animal Feeding Operations finalized on March 9, 1999. The Strategy sets forth a
framework of actions that USDA and EPA will take to minimize water quality and public health
impacts from improperly managed animal wastes in a manner designed to preserve and enhance
the long-term sustainability of livestock production.   EPA's recent revisions to the  CAFO
Regulations (effluent guidelines and NPDES permit regulations) will be a key element of EPA
and USDA's plan to address water pollution from CAFOs. EPA and USDA senior management
meet routinely to ensure effective coordination across the two agencies.

Clean Water State Revolving Fund (CWSRF)

       Representatives from EPA's SRF program, Housing and Urban Development's (HUD's)
Community Development Block Grant program, and USDA's Rural Utility Service have signed
a Memorandum of Understanding committing to assisting state or Federal implementers  in:  (1)
coordination of the funding cycles of the three Federal agencies; (2) consolidation of plans of
action (operating plans, intended  use  plans, strategic plans, etc.);  and (3) preparation  of one
environmental review document, when possible, to satisfy the requirements of all  participating
Federal agencies. A coordination group at the Federal level has been  formed to  further these
efforts and maintain lines of communication. In many states, coordination committees have been
established with representatives from the three programs.

       In implementation of the Indian set-aside grant program under Title VI of the CWA, EPA
works closely with the Indian Health  Service to administer grant  funds to the various Indian
tribes, including determination of the priority ranking system for the various wastewater needs in
Indian Country.

       In  1998,  EPA and the Rural Utilities Service  of the USDA formalized a partnership
between the two agencies to  provide  coordinated financial and technical assistance to Indian
tribes.

Construction Grants Program - US Army Corps of Engineers

       Throughout the history of the construction grants program  under Title  II of the CWA,
EPA and the delegated states have made broad use of the construction expertise of the Corps of
Engineers  to  provide varied  assistance in construction oversight  and administrative matters.
EPA works with the  Corps to provide oversight for construction  of the special  projects that
Congress has designated. The mechanism  for this  expertise has been  and continues to be  an
Interagency Agreement between the two agencies.

Nonpoint Sources

       EPA will continue to  work closely with its  Federal partners to achieve the ambitious
strategic objective  of reducing pollutant discharges, including at  least 20 percent from 1992
erosion levels. Most significantly, EPA will continue to work with  the USDA, which has a key
role in reducing  sediment loadings through its continued implementation of the Environmental
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Quality Incentives Program, Conservation Reserve Program, and other conservation programs.
USD A also plays a major role in reducing nutrient discharges through these same programs and
through activities related to the AFO Strategy.  EPA will also continue to work closely with the
Forest Service and Bureau of Land Management, whose programs can contribute significantly to
reduced pollutant loadings of sediment, especially on the vast public lands that comprise 29
percent of all land in the United States.  EPA will work with these agencies, USGS, and the
states to document improvements in land management and water quality.

       EPA will also  work with other Federal agencies to advance a watershed approach to
Federal land and resource management to help ensure that Federal land management agencies
serve as a model for water quality stewardship in the prevention of water pollution and the
restoration of degraded water resources.  Implementation of a watershed approach will require
coordination among Federal agencies at a watershed scale and collaboration with states, tribes
and other interested stakeholders.

Vessel Discharges

       Regarding vessel discharges, EPA will continue working closely with the Coast Guard on
addressing ballast water discharges domestically, and with the interagency work group and U.S.
delegation to Marine Environmental Protection Committee (MEPC) on international controls.
EPA  will continue to work closely with the  Coast Guard, Alaska and other states, and the
International Council of Cruise Lines regarding regulatory and  non-regulatory approaches to
managing wastewater discharges  from cruise ships.  EPA  will also continue to work  with the
Coast Guard on updating vessel sewage discharge standards, and with the Navy on developing
Uniform National Discharge Standards for Armed Forces vessels. Regarding dredged material
management, EPA will continue to work closely with the  Corps  of Engineers  on standards for
permit review, as well as site selection/designation and monitoring.

International Capacity

       EPA works with the Department of State, NOAA, Coast Guard, Navy, and other Federal
agencies in developing the technical basis and  policy decisions necessary for negotiating global
treaties concerning marine antifouling systems, invasive species, and air pollution from ships.
EPA also works with the same Agencies in addressing land-based sources of marine pollution in
the Gulf of Mexico and Wider Caribbean Basin.
STATUTORY AUTHORITIES

Annual Appropriations Acts
Certain Alaskan Cruise Ship Operations Act (PL 106-554)
Clean Vessel Act
Clean Water Act (CWA)
Coastal Zone Act Reauthorization Amendments of 1990
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)
Marine Plastic Pollution, Research and Control Act (MPPRCA) of 1987
Marine Protection, Research and Sanctuaries Act (MPRSA)
National Environmental Policy Act, Section 102

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National Invasive Species Act of 1996
North American Free Trade Agreement (NAFTA)
Ocean Dumping Ban Act of 1988
Organotin Antifouling Paint Control Act (OAPCA)
Pollution Prevention Act (PPA)
Resource Conservation and Recovery Act (RCRA)
Safe Drinking Water Act (SDWA)
Shore Protection Act of 1988
Toxic Substance Control Act (TSCA)
Water Resources Development Act (WRDA)
Wet Weather Water Quality Act of 2000
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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                                Clean and Safe Water

OBJECTIVE: Enhance Science and Research

      Provide and apply a sound scientific foundation to EPA's goal of clean and safe water by
conducting leading-edge research and developing a better understanding and characterization of
the environmental outcomes under Goal 2.

                                 Resource Summary
                                (Dollars in Thousands)

Enhance Science and Research
Environmental Program & Management
Science & Technology
Building and Facilities
Inspector General
Total Workyears
FY 2003
Actuals
$119,269.5
$18,346.3
$97,900.4
$2,481.7
$540.9
535.7
FY2004
Pres. Bud.
$120,501.6
$21,640.6
$95,708.8
$2,508.8
$643.3
526.7
FY2005
Pres. Bud.
$120,959.1
$22,084.0
$95,527.1
$2,702.6
$645.4
526.5
FY 2005 Req. v.
FY 2004 Pres Bud
$457.5
$443.3
($181.7)
$193.8
$2.1
-0.1
                                   Program Project
                                 (Dollars in Thousands)

Surface Water Protection
Congressionally Mandated Projects
Research: Drinking Water
Research: Water Quality
Administrative Projects
TOTAL
FY2003
Actuals
$520.9
$4,328.9
$43,253.7
$46,934.1
$24,231.9
$119,269.5
FY 2004
Pres. Bud.
$1,004.4
$0.0
$46,053.4
$47,178.5
$26,265.3
$120,501.6
FY 2005
Pres. Bud.
$1,011.3
$0.0
$46,118.1
$46,809.8
$27,019.9
$120,959.1
FY 2005 Req. v.
FY 2004 Pres Bud
$6.9
$0.0
$64.7
($368.7)
$754.6
$457.5
FY 2005 REQUEST

Results To Be Achieved Under the Objective

Clean and Safe Water Science

       Meeting the goal of clean and  safe water requires that EPA  effectively apply basic
research findings to the specific needs of water programs.  The Agency  will draw on the results
of basic research to prove and refine existing conclusions about the drinking water safety and
water quality.  Critical, scientific aspects of water program research include development  of
analytic test  methods to support programs' scientific integrity; laboratory certification; and
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analysis of questions more commonly thought of as "social science,'  such as the costs and
benefits of safe drinking water and healthy aquatic ecosystems.

Surface Water Protection

       Develop Analytic Test Methods:   EPA establishes analytic test methods that describe
laboratory procedures for measuring contaminant levels in drinking and surface waters. In some
cases,  EPA itself develops  methods; in other cases,  the Agency approves  alternative test
procedures.   Approximately 550  EPA-approved  analytical methods  exist  for nearly 300
contaminants.  These test methods support the development of drinking water standards, surface
water quality criteria and standards, industrial discharge regulations, water monitoring, discharge
permitting, pretreatment, and compliance. 70

       EPA has several goals for improving the  analytic methods program over the next five
years.  These  include reducing  the  backlog of applications for  approval  of  alternative test
procedures, many involving new technology; developing, new analytic methods that support the
more stringent levels of protection  that have been established for some contaminants and are
more cost-effective to use; and making analytic methods readily available to the public through a
new web-based system.

       Develop Methods for Valuing Ecological and Recreation Benefits:  A related scientific
effort is developing unproved methods to assess and value ecological and recreational benefits
that result from improvements in water quality. EPA is supporting studies of the monetary value
of cleaner water for aquatic life and other ecological and recreational benefits, such as boating,
and will use this information to develop more precise estimates of the benefits of water pollution
control programs and requirements.

Research: Drinking Water

       EPA's  drinking water  and water quality research  programs conduct leading edge,
problem-driven research to provide a sound scientific foundation for Federal regulatory decision-
making.  These efforts will result in strengthened public health and aquatic ecosystem protection
by providing methods, models, assessments, and risk management options for EPA program and
regional  offices.  Important research under this objective will:  1) provide stressor-response
relationship models linking loss and alteration of habitat to selected fish, shellfish, and wildlife
endpoints;  2)  update models for stormwater management, suspended  solids,  sediments, and
nutrients; 3) provide data on contaminant occurrence, treatment  and application process cost-
effectiveness,  and contaminant transport and fate for selected biosolids contaminants; 4) report
on the treatability of selected endocrine disrupting chemicals; and 5) report on  occurrence data
for newly identified disinfection by-products (DBPs)  to  help  assess  risk from alternative
disinfectants.

       Although the U.S. has made considerable progress in supplying safe drinking water to its
citizens,  and waterborne threats such as  typhoid and  cholera have been virtually eliminated,
70 See http://www.epa.gov/waterscience/methods
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some public  health concerns  remain.71   These  concerns are  supported by the  continued
occurrence of waterbome disease outbreaks, the presence of chemical contaminants in drinking
water supplies, and the contamination of surface water and ground water sources.  These events
may compromise the safety of drinking water if treatment is inadequate or if the quality of the
water hi distribution systems is compromised.  Strengthening EPA's ability to characterize and
manage  risks to human health posed by  exposure to waterborne pathogens and chemicals in
drinking water yields public health benefits.  Furthermore, it will improve our understanding of
potential health risks to vulnerable subpopulations, such as infants and children or those with
weakened immune systems.

       The research provisions of the 1996 Safe Drinking Water Act (SDWA) Amendments72
highlight the importance of EPA's drinking water  research program for  providing a strong
scientific foundation for regulatory decision-making (Criteria:  Relevance).   The  Amendments
also contain specific requirements for research on waterborne pathogens (e.g., Cryptosporidium
and Norwalk virus), disinfection by-products, arsenic, and other harmful substances in drinking
water.   The SDWA and amendments also mandate EPA to conduct studies to identify and
characterize groups that may be at greater  risk than the general population following exposure to
contaminants in drinking water. EPA is directed to use a risk-based standard-setting process and
sound science in fulfilling the requirements of the Act.  In response to these requirements, EPA
has established an integrated, multi-disciplinary research program that is closely linked to the
Agency's regulatory activities and timelines.

       The FY 2005 drinking water research program, through its leading edge, problem-driven
research, directly supports  the  EPA's Strategic  Plan73  through development  or revision of
standards  for  contaminants  of  concern, effective  implementation  of these  standards, and
protection of drinking water sources.  To  help guide  the drinking water research program, EPA
developed research plans for Microbial Pathogens and DBPs in Drinking Water74 and Arsenic in
Drinking Water,75 and has  developed a draft research plan for  drinking water contaminants on
the Contaminant Candidate List (CCL).   These plans were subject to rigorous peer review and
address  those  problems deemed most pressing in the  area of drinking water quality (R&D
Criteria: Quality, Relevance).

       In addition, the Drinking Water Research Multi-Year Plan (MYP) provides a framework
for integrating research throughout EPA's Office of Research and Development and ensures that
the research planned is relevant to EPA and state needs and addresses priority science needs for
drinking water research (Criteria: Relevance).76   The  MYP articulates the long-term  goals,
purpose, and priorities of the program, and includes a scheduled timeline of research activities
and expected products of the research program. To ensure quality, all scientific  and technical
71 U.S. EPA, Office of Research and Development. "1999-2001 Research Accomplishments: Drinking Water." Updated on: June
2, 2003. Date of Access: January 14,2004. Available only through the Internet: http://www.epa.gov/ord/archives/2002/august/
72 Safe Drinking Water Act Amendments of 1996, Public Law 104-182. Updated on: February 26,2003. Date of Access: January
14,2004. Available through the internet: http://www.epa.gov/safewater/sdwa/sdwa.html
73 U.S. EPA, Office of the Chief Financial Officer. "2003 - 2008 EPA Strategic Plan: Direction for the Future. " Date of Access:
January 14,2004. Available only through the internet: http://www.epa.gov/ocfo/plan/2003sp.pdf
74 U.S. EPA, Office of Research and Development. Research Plan for Microbial Pathogens and Disinfection By-Products in
Drinking Water. Washington, D.C.: U.S. Government Printing Office. EPA 600-R-97-122. (1997).
75 U.S. EPA, Office of Research and Development. Research Plan for Arsenic in Drinking Water. Washington, D.C.: U.S.
Government Printing Office. EPA 600-R-98-042. (1998).
76 U.S. EPA, Office of Research and Development. Drinking Water Research Program Multi Year Plan. Available only though
the internet at: http://www.epa.gov/osp/myp/dw.pdf

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work products undergo internal and/or external peer review, with major or significant products
requiring both internal and external peer review (Criteria: Quality).

       The broad scope of EPA's research includes the development of new scientific data,
innovative methods, and cost-effective technologies for improving the scientific understanding
and control of drinking water risks.  The research products and technical assistance provided by
EPA's  drinking  water  research  program  support  regulatory  decision making  and  the
implementation of EPA rules and guidance by states, local authorities and water utilities.

       In FY 2005, EPA's drinking water research program will continue to focus on laboratory,
clinical, and field studies of contaminants on the CCL, selected high priority DBFs, and arsenic.
Studies of chemical contaminants on the CCL will seek to provide either screening level or more
detailed information to support CCL regulatory determinations.  Research  support through
EPA's Science to Achieve Results (STAR) program will evaluate the infectivity, illness,  and
immune response to Cryptosporidium that will enable development of improved risk assessment
models.77 The  STAR program, which  requires  all research proposals  to undergo rigorous
competitive peer review, is an integral part of EPA's drinking water research program.   The
primary purpose of such peer review is to ensure that only high-quality research receives funding
support.    EPA will conduct research to  characterize health effects, especially  adverse
reproductive outcomes, from  the highest priority by-products  and DBP mixtures.  Studies  will
also examine potential carcinogenicity of DBFs,  as well as other toxic  endpoints of possible
concern.  Research will  include  studies to establish dose-response relationships for priority
contaminants, characterize pathogen virulence, evaluate the impact of host factors (e.g., immune
status) on infection and disease, and identify the causative agents responsible for waterborne
diseases.

       In FY 2005, research will continue to focus on the development of improved analytical
detection methods for measuring the occurrence of chemicals and microbes on the CCL. Field-
testing of new methods will be conducted to gain performance information and preliminary
occurrence data.  Pathogen classification schemes (i.e., virulence factor activity relationships),
suggested by the National Research Council, will be investigated  and evaluated for potential
incorporation into future CCL listing and priority setting activities. Emphasis will be placed on
identifying new DBFs (e.g., iodinated  DBFs) resulting  from various disinfection processes,
deterrnining the factors affecting formation,  fate and transport of priority halonitomethane DBFs,
and development of unproved analytical methods to detect and measure both DBFs and CCL-
listed chemicals. To help design and interpret animal toxicity  and human epidemiology studies,
arsenic exposure research will improve  methods for  measuring different forms of arsenic in
foods and will establish a preliminary database of levels of arsenic species in target foods.

       In FY 2005, drinking water risk management research will study the characterization and
fate  of DBFs hi distribution systems.   This work  will address how to adapt conventional
treatment systems to new contaminants so that safe drinking water is cost effectively produced,
as  well as  development of treatment optimization strategies  and  innovative treatment
technologies.  Desired outcomes of this research include  improving EPA's ability to minimize
the risks from DBFs while controlling microbial pathogens. In addition to addressing regulated
contaminants, this research plays an important  role in assessing the need and feasibility of
77 For more information about EPA's Science to Achieve Results Program, see http://es.epa.gov/ncer/
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controlling new contaminants under the CCL program.  To support decisions on whether or not
new contaminants on the CCL  should be regulated, research will continue to identify cost-
effective contaminant control techniques.  Other efforts will also address the special needs of
small systems for arsenic removal and pathogen control in order to develop and demonstrate
small-scale, cost-effective treatment  technologies  that  are easily installed and automated.
Research  will continue  epidemiological  investigations  to  evaluate  the  risk  attributable to
pathogens  introduced in  distribution systems, and will evaluate the effectiveness of bank
filtration for removing pathogens. Bank filtration is a water treatment process that uses surface
water that has naturally infiltrated ground water via the riverbed or banks and is recovered via a
pumping well.

       Creating multiple barriers that prevent human exposure to contaminated waters is  a major
element of EPA's drinking water research program.  Source water protection research will
continue to focus on identifying and controlling significant sources of surface and ground water
contamination, as well as monitoring source water contaminants, wet weather flow and non-point
source impacts on water quality, and developing techniques for improved source water quality
and source load allocation. Research on distribution systems will address effective contaminant
detection  techniques, processes  in systems that result in changes in chemical and pathogen
contaminant concentrations, and options to prevent those of greatest concern.

Research: Water Quality

Although the quality of the Nation's waters has shown improvements, water pollution problems
remain.  The adoption and implementation of statewide watershed approaches by states and
tribes  require  strong  standards,  monitoring,   Total   Maximum  Daily  Loads  (TMDLs)
determinations, and  implementation programs (e.g., National Pollutant Discharge Elimination
System (NPDES) permit) (Criteria:  Relevance).   In order to support these programs, water
quality research will improve risk management strategies to help EPA and other Federal, state,
and local agencies develop better baseline assessments of water quality, and implement strategies
for cost-effective improvements  in water quality.   Advances  hi  understanding  the fate and
transport of water quality pollutants, aquatic ecosystem responses, and treatment technologies for
point sources have led to the dramatic restoration of some of the Nation's most polluted waters.
The Agency's water quality research program will provide approaches and methods the EPA and
its partners need to develop and apply criteria to  support designated uses, tools to diagnose
impairment in aquatic systems, and tools to restore and protect aquatic systems.  For example
EPA  is developing  CADDIS (Casual Analysis Diagnosis  Decision Information System), a
database which provides  guidance, data, and models  for integrating information on  stressor
response relationships for use by states, regions and tribes in environmental decisions-making.

       Research  to  support the  development of ecological criteria includes  evaluating  the
exposures and effects of nutrients, suspended and bedded sediments, pathogens, toxic chemicals,
and habitat alteration stressors on aquatic systems and understanding the structure and function
of aquatic systems.  This  research provides the scientific foundation to support TMDLs. EPA
developed the Ecological  Research Strategy78 to provide focus to its research on the effects of
stressors on ecosystems, habitat alteration, diagnostic methods,  landscape modeling, and best
                                                                                                 \
78 U.S. EPA, Office of Research and Development. Ecological Research Strategy. Washington, D.C.: U.S. Government Printing
Office. EPA 600-R-98-086. (1998).
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management and restoration practices.  This strategy was  subjected to rigorous  external peer
review and addresses those problems that pose the greatest risks to the environment. In addition,
the Water Quality Research Program Multi-Year  Plan (MYP)79 provides  a framework for
integrating water quality research across EPA.   To ensure quality, all scientific  and technical
work products resulting from the research must undergo either internal or external peer review,
with major or  significant products requiring external peer review.  Research outlined in the
Water Quality MYP will demonstrate integrated and stakeholder driven approaches to achieving
water quality goals, as well as focus on the development of watershed diagnostic  methods,
understanding the importance of critical habitats, and the impacts  of habitat alteration on aquatic
communities (Criteria: Quality).

       EPA is  developing stressor response models to understand and predict the relationship
between stressors such as nutrients, eutrophication, and hypoxia on aquatic ecosystems including
wetlands, riparian  zones,  sediments,  and freshwater and  marine ecosystems.   EPA is also
developing an ecological risk assessment for nutrients, initially focusing on nitrogen, as part of
its program  to develop common  methodologies for integrating ecological and human health
assessments. Research on the ecology and oceanography of harmful algal blooms (HABs) is
funded as part of a joint effort with other Federal agencies including the National Oceanic and
Atmospheric Administration (NOAA) and the National Science Foundation (NSF).

       In  FY  2005 the  Agency  will  continue  to  address  uncertainties  associated  with
characterizing, managing, and reducing the risks to human health and the environment from the
production and application of treated wastewater sludge (biosolids) to land for use as fertilizers
and soil conditioners, in response to the research recommendations of the National Academy of
Science report on this topic.80 The technical basis for current regulations was  largely developed
in the mid-1970s to early 1980s. The composition of biosolids has changed markedly since then
and technical advances allow for better characterization, assessment, and management of sewage
sludge,  and citizens in communities near biosolids application  sites have  expressed concerns
about their health risks.  Research will focus on exposure and analytical methods  development,
reviewing  available data from past  field studies, tracking ongoing studies,  conducting  field
studies, and improving existing treatment techniques for pathogen destruction  through enhanced
support of the Pathogen Equivalency Committee (PEC).

       Although suspended  and bedded sediments are a  natural part of aquatic  ecosystems
critical to the energy  cycle  of the water body and the provision of microhabitats, they  have
become stressors associated  with human activity that adversely  affect aquatic habitats.  In the
2000 Water Quality Report, suspended solids and sediments were identified among the leading
causes of water quality impairment for  streams and rivers.81  To maintain natural background
levels of suspended and bedded sediments, water resource managers need  scientific tools to
determine their impacts on aquatic communities. In collaboration with EPA laboratories, risk
management strategies will  be developed to help reduce  the impact of human activities on
sedimentation and to maintain sediments at background levels.
79 U.S. EPA, Office of Research and Development. Water Quality Research Program Multi Year Plan. Available only though the
internet at: http://www.epa.gov/osp/myp/wq.pdf
80 NRC, 2002. Biosolids Applied to Land; Advancing Standards and Practices, National Research Council of the National
Academies. The National Academies Press. Available through the internet: http://www.epa.gov/ost/biosolids/nas/complete.pdf
81 U.S. EPA, Office of Water. 2000 National Water Quality Inventory. Available through the internet:
http://www.epa.gov/305b/2000report/

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       Chemical stressors also impact aquatic life, the benthic community (e.g., clams, crabs,
lobsters, and other tiny organisms that live in or on the bottom of the ocean floor), wildlife, and
human health.  Research in this area focuses on developing scientifically defensible methods to
better describe the risks of toxic chemicals to aquatic  and aquatic-dependent populations and
communities.   Specific  goals are to: 1) demonstrate  methods for water quality  criteria  for
bioaccumulative and non-bioaccumulative chemicals based on more complete and accurate risk
characterization of toxic chemicals to aquatic organisms; 2) provide methods for water quality
criteria  based on population-level risk characterization of toxic chemicals to aquatic life and
aquatic-dependent wildlife; and 3) provide methods for extrapolating chemical toxicity data
across exposure  conditions and  across  endpoints, life stages,  and species that can support
assessment of risks to aquatic life and aquatic-dependent wildlife for chemicals with limited data.

       The  main focus of habitat alteration research is to provide the scientific  basis  for
assessing the role of essential habitat in  maintaining healthy populations of fish, shellfish, and
wildlife, assisting the Agency and states in understanding interactions among pollutant effects
and other effects related to habitat changes. This research will identify the relationships between
habitat alteration and biological response and extrapolation schemes needed to develop broad-
scale habitat criteria for streams and coastal systems. The results of this research, combined with
biocriteria and monitoring research conducted in Goal  4 can be used to determine biocriteria,
evaluate combined effects of habitat alteration and other stressors (such as chemicals), and assist
ecosystem restoration decisions.

       In FY 2005, EPA research on diagnostic  methods will continue to focus on the causes
and  sources of biological  and aquatic ecosystem  impairment.   This work will be  useful in
implementing criteria to protect and strengthen the biological basis for designated uses in state
and tribal water quality standards, improving the scientific foundation for addressing point and
non-point source water quality impairment, and determining appropriate and effective watershed
management alternatives. Specifically, this research will provide: 1)  the scientific foundation
and information management scheme for the 303 (d) listing  process, including a classification
framework for surface waters, watersheds, and regions to guide problem  formulation; 2)  first
generation diagnostic methods to distinguish among major classes of individual aquatic stressors
and/or suggest  causal mechanisms  that contribute to  impairment  of marine and freshwater
systems; and 3) refinements in  diagnostic  methods and technical support  documents82  for
determining the relative significance of multiple stressors in 303(d) listed waters.

       Modeling and landscape characterization  research will provide the tools to inform and
support monitoring, assessment, diagnoses, restoration and protection of aquatic systems and to
forecast the ecological, economic,  and human  health outcomes of alternative management
solutions.  The water quality research program will also address the uncertainties of effectiveness
of management options (e.g., best management practices) to control nutrients, suspended solids,
sediments, pathogens, toxic chemicals, and flow  variations.   The goals are to  develop decision
support tools to assist watershed managers in analyzing problems associated with these stressors,
identify cost effective solutions, and conduct benefits analysis with a focus on mixed land-use
watersheds and watersheds in transition from development pressures.  This program is designed
to promote  community-based decisions  by developing decision support tools and alternative
82 U.S. EPA, Office of Research and Development, Office of Water. Stressor Identification Guidance Document. Washington,
D.C.: U.S. Government Printing Office. EPA 822-B-00-025. (2000).
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control technologies and strategies for  use by local decision  makers involved  in  watershed
management and pollution control.  In FY 2005 studies will be conducted on the transport and
control of contaminants from agricultural  operations that  reach the  environment through air
emissions, surface runoff,  or leaching to ground water. In  addition, research on wetlands  will
compare natural  and constructed  wetlands to  determine  how seasonal changes in hydrologic
regime, stressor load, and upland land use affect the functioning of these systems. The results of
this research, along with the restoration technology and tool development activities described in
Goal 4, will equip Federal, state, and local managers with scientifically defensible methods for
protecting and restoring ecosystems.

       Wet weather flow (WWF) drainage from urban and rural non-point sources during and
after rainfalls is one of the primary causes of water pollution.  This degradation of water quality
poses significant risks to human and ecological health through the uncontrolled release of silts,
pathogenic  bacteria,  protozoans,  and  viruses,  as well as  a  number  of potentially  toxic,
bioaccumulative  contaminants.  EPA has developed the  Risk Management Research Plan for
Wet Weather Flows83 that provides a framework for integrating WWF  research across EPA. To
minimize the public health risks from swimming and other recreational water activities, research
will specifically focus on both developing techniques to  reduce WWF impacts and  to provide
data to support the development of scientifically sound criteria for protecting recreational waters.
This program is designed to promote community-based decisions by developing decision support
tools and alternative WWF control technologies and strategies for use by local decision makers
involved  in watershed management and pollution control. Effective watershed management
strategies and guidance for WWF discharges, unproved recreational water quality, and better risk
communication programs  are all necessary to ensure  clean and  safe water  for drinking,
recreation, and wildlife habitat.

       EPA will also develop and provide effective evaluation tools necessary  to make timely
and informed decisions on beach advisories and closures and strengthen beach programs and
water quality criteria for recreational water use.  As part  of this effort, EPA has developed the
EPA Action Plan for Beaches and Recreational Waters.84  Research guided by the "EPA Action
Plan for Beaches and Recreational Waters" and the Beaches  Act of 2000 will  in FY 2005
continue to focus on better understanding the effects of microbial pathogens on human health.
Significant uncertainty exists in deterrrnning the level of illness corresponding to  the  actual
exposure (ingestion, inhalation, and skin contact) to contaminated recreational waters. Research
is needed to provide decision makers with the necessary tools for making defensible science-
based  decisions  that  ensure public health and  safety, including  evaluating and selecting
appropriate indicators  of fecal contamination and determining relationships between indicators
and risk levels for disease.  EPA is performing a suite  of epidemiological studies needed to
establish a stronger, more defensible link between water quality indicators and disease  which
will provide reliable information about the relationship between recreational water quality and
swimming-associated health effects. This will enable EPA to provide states with more consistent
monitoring methods, standardized indicators of contamination, and standardized definitions of
what constitutes a risk to public health.  Local public health officials can use the results of this
83 U.S. EPA, Office of Research and Development. Risk Management Research Plan for Wet Weather Flows.
Available through the internet: http://www.epa.gov/ednnrrnrl/repository/wwfplan/wwf_plan.pdf
84 U.S. EPA, Office of Research and Development, Office of Water. EPA Action Plan for Beaches and Recreational
Waters. Washington, D.C.: U.S. Government Printing Office. EPA 600-R-98-079. (1999). Available through the
internet: http://www.epa.gov/ordAVebPubs/beaches/600r98079.pdf

                                           11-93

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research to provide the public with "real-time" information on potential exposure to pathogenic
microbes and make timely beach closure decisions.
FY 2005 CHANGE FROM FY 2004

S&T

•      (-$433,400) These resources represent savings that will result from consolidation of many
       information technology (IT) services,  including call center and  service  desk, server
       management, hardware and software acquisition, and IT equipment standardization.  This
       will result  in  enhanced security and uniform maintenance requirements.   Since these
       resources represent an efficiency savings, there is no negative programmatic impact.

•      (-$200,000) This represents a minor reduction to water quality research under the Science
       to Achieve Results (STAR) grants program.  There  will not  be any programmatic or
       performance impacts.

•      There are additional  increases for payroll, cost of living, and enrichment for new and
       existing FTE.
EPM
       There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.
ANNUAL PERFORMANCE GOALS AND MEASURES

Research

Scientific Rationale for Surface Water Criteria

In 2005     Provide methods for developing water quality criteria so that, by 2008, approaches and methods are
           available to States and Tribes for their use in developing and applying criteria for habitat alteration,
           nutrients, suspended and bedded sediments, pathogens and toxic chemicals that will support designated
           uses for aquatic ecosystems and increase the scientific basis for listing and delisting unpaired water
           bodies under Section 303(d) of the Clean Water Act.

Performance Measures:                       FY2003     FY2004     FY2005
                                           Actuals     Pres. Bud.    Pres. Bud.

Methods for developing  water quality criteria                            09/30/05       methods
based on  population-level  risks  of multiple
stressors to aquatic life and aquatic-dependent
wildlife.


Baseline:   State, Tribal, and EPA programs that assess, maintain, and restore water quality are all dependent upon
           the ability to define water quality standards that, when met, are protective of the designated and desired
           use of streams, lakes, and estuaries. The scientific bases for such standards are water quality criteria

                                             11-94

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           that relate biological outcomes (e.g., fish populations, aquatic wildlife communities, threatened and
           endangered species) to measurable water quality parameters (e.g., nutrients, suspended and embedded
           sediments, chemical concentrations).  Relatively recent and Congressionally-mandated studies by the
           National Research Council call for continued and more targeted scientific studies on water quality
           criteria that reflect observed environmental variations and that reflect the multiple influence of habitat
           alteration, regional and watershed conditions, and appropriate designated uses. Accordingly, EPA has
           modified its longstanding research on water quality criteria to address these issues. Scientific outputs
           from this research can be integrated into EPA technical guidance to the States and Tribes. Adoption
           and deployment of new criteria developed with the assistance of the new methods and approaches will
           improve the cost-effectiveness of TMDL's and related restoration efforts.  Beginning in FY  2005,
           regular  evaluations by independent and external  panels will provide reviews of EPA  research
           programs'  relevance, quality, and  successful performance  to  date,  in  accordance  with OMB's
           Investment Criteria for Research and Development.  Reviewers will also qualitatively determine
           whether EPA has been successful in meeting its annual and long-term commitments for research.
           Recommendations and results from these reviews will improve the design and management of EPA
           research programs and help to measure their progress under the Government Performance and Results
           Act (GPRA).
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure: Methods for developing water quality criteria based on
population-level risks of multiple stressors to aquatic life and aquatic-dependent wildlife.

Performance Database: Program output; no internal tracking system

Data Source:  N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations: N/A

Error Estimate:  N/A

New/Improved Data or Systems: N/A

References: N/A


COORDINATION WITH OTHER AGENCIES

       While EPA is the Federal agency mandated to ensure  safe drinking water, other Federal
and non-Federal entities are conducting research that complements EPA's research program on
priority  contaminants in drinking water.  For example,  the  Centers for Disease Control and
Prevention (CDC) and the National Institute of Environmental Health Sciences (NIEHS) conduct
health effects and exposure research.  The Food and Drug Administration (FDA) also performs

                                            11-95

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research  on children's risks.   Many of these research activities are being  conducted in
collaboration with EPA scientists.  The private sector, particularly the water treatment industry,
is  conducting research hi  such areas as analytical methods, treatment technologies,  and the
development and maintenance of water resources.  Cooperative research  efforts have  been
ongoing  with  the  American  Water  Works Association Research  Foundation and other
stakeholders to coordinate drinking water  research.   EPA  is also working  with  the  U.S.
Geological Survey (USGS) to evaluate performance of newly developed methods for measuring
microbes in potential drinking water sources.

       Interactions with external stakeholder groups have been initiated that will help determine
EPA's future regulatory priorities and research needs for drinking water. Interactions  with re
Science Advisory Board's Drinking  Water Committee  and the National Drinking Water
Advisory Committee will also help EPA refine its drinking water research agenda.

       EPA has developed joint research initiatives with the National Oceanic and Atmospheric
Administration  (NOAA)   and the United  States  Geological  Survey  (USGS) for  linking
monitoring data and field studies information with available toxicity data and assessment models
for developing sediment criteria.

       Under the Endangered Species  Act, EPA is required to consult with the U.S. Fish and
Wildlife Service (USFWS) and the National Marine Fisheries Service (NMFS)  on actions that
may affect  endangered species.   EPA  has developed  a  draft  strategy  for research  and
development of criteria for endangered  species that  is now being  reviewed.  As  part of
implementation of this strategy, EPA is coordinating its research with the Biological Research
Division of the USGS.

       The issue of eutrophication, hypoxia, and harmful algal blooms (HABs) is a priority with
the Committee on Environment and Natural Resources (CENR).  An interagency  research
strategy for pfiesteria and other harmful algal species was developed in 1998, and  EPA is
continuing to implement that strategy.  EPA is  working closely with NOAA on the issue of
nutrients and risks posed by HABs. This CENR is  also coordinating the research efforts among
Federal agencies to assess the impacts of nutrients and hypoxia hi the Gulf of Mexico.

       Implementation of EPA's Wet Weather Flows work is guided by the "Risk Management
Research Plan for Wet Weather Flows."  This research plan was peer-reviewed by the Urban
Water Resources Research Council of the American Society of Civil Engineers (ASCE) and the
Water Environment Research Foundation of the Water Environment Federation.   Projects under
the WWF research plan are being coordinated with projects under Section 104(b)(3) of the Clean
Water Act (CWA). This plan is also being used to coordinate relevant work being conducted by
others such as the Water Environment Research Foundation's Wet Weather Advisory Panel, the
ASCE Urban Water Resources Research Council, the U.S. Department of Agriculture, the U.S.
Centers for Disease  Control  and Prevention (CDC), the  U.S. Army Corps of Engineers
(USAGE), the U.S. Geological Survey (USGS), the Sanitary Sewer Overflow (SSO) Advisory
Committee and Urban WWF Subcommittee,  and other national and international organizations
that work to improve coordination and minimize duplication of WWF research.
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       EPA is partnering with numerous other Federal and state agencies on WWF research
projects.  For example, the Agency signed a three-year interagency .agreement  (IAG) with
USAGE at the Waterways Experiment Station in Vicksburg, Mississippi, to develop a numerical
watershed model that will predict change  in  stream channels from land use change.   Both
organizations have an inherent interest hi  developing tools to predict such geomorphologic
changes.   Land use  changes  alter storm water runoff patterns, which upset the established
equilibrium between  the flow, shape, and course of the streambed (stream geomorphology).
Under this LAG the USAGE will modify an existing river model to account for erosion m small
streams.

       Also, EPA is  pursuing collaborative  research projects with the USGS to utilize water
quality data  from urban  areas  obtained  through then-  National Ambient Water Quality
Assessment (NAWQA) program.  The USGS data for urban streams show levels of pesticides
that are even higher than hi many agricultural area streams.  These data have potential uses for
identifying sources of urban pesticides,  and EPA will evaluate how the USGS  data could be
integrated into the GIS database system.

       Finally, EPA  is initiating  collaboration with the USDA, CDC, and other Agencies to
develop a better understanding of the sources of pathogenic  stressors and potential strategies for
then: control.
STATUTORY AUTHORITES

Clean Air Act (CAA)
Clean Vessel Act
Clean Water Act (CWA)
Coastal Wetlands Planning, Protection, and Restoration Act of 1990
Coastal Zone Act Reauthorization Amendments of 1990
Endangered Species Act
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
Marine Plastic Pollution, Research and Control Act (MPPRCA) of 1987
Marine Protection, Research and Sanctuaries Act (MPRSA)
National Invasive Species Act of 1996
North American Wetlands Conservation Act
Ocean Dumping Ban Act of 1988
Safe Drinking Water Act (SDWA)
Shore Protection Act of 1988
Toxic Substances Control Act (TSCA)
Water Resource Development Act (WRDA)
                                        11-97

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                        Environmental Protection Agency

        FY 2005 Annual Performance Plan and Congressional Justification

                          CLEAN AND SAFE WATER
Beach / Fish Programs, 11-12
Categorical Grant
  Beaches Protection, 11-12
  Homeland Security, 11-13
  Nonpoint Source (Sec. 319), 11-50
  Pesticides Program Implementation, 11-12,11-26
  Pollution Control (Sec. 106), 11-50
  Public Water System Supervision (PWSS), 11-12
  Underground Injection Control (UIC), 11-12
  Wastewater Operator Training, 11-50
  Water Quality Cooperative Agreements, 11-12,11-50
Children and other Sensitive Populations, 11-12
Congressionally Mandated Projects, 11-12,11-50,11-86
Drinking Water Programs, II-8,11-12,11-14
Great Lakes Legacy Act, 11-21
Homeland Security
  Critical Infrastructure Protection, 11-13
Infrastructure Assistance -
  Alaska Native Villages, 11-50
  Clean Water SRF, 11-50
  Drinking Water SRF, 11-12
  Puerto Rico, 11-12
International Capacity Building, 11-12,11-27,11-50,11-64
Marine Pollution, 11-50,11-62,11-63
Pesticides
  Field Programs, 11-12
Research
  Drinking Water, 11-86
  Water Quality, 11-86
Science Advisory Board, II-4,11-96
Surface Water Protection, II-6, II-8,11-50,11-86,11-87
Wetlands, 11-70,11-73,11-97

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Goal 3: Land Preservation
    And Restoration

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification

Table of Contents
Goal 3: Land Preservation and Restoration	III-l
       Preserve Land 	111-14
       Restore Land	111-38
       Enhance Science and Research	111-86
       Subject Index	111-96

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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                          Land Preservation and Restoration

STRATEGIC GOAL:  Preserve and restore the land by using innovative waste management
practices and cleaning up contaminated properties to reduce risks posed by releases of harmful
substances.

                                  Resource Summary
                                 (Dollars in thousands)

Land Preservation and Restoration
Preserve Land
Restore Land
Enhance Science and Research
Total Workyears
FY2003
Actuals
$1,706,796.3
$205,443.3
$1,454,821.4
$46,531.6
4,675.2
FY2004
Pres. Bud.
$1,779,473.5
$210,990.1
$1,508,646.8
$59,836.6
4,744.8
FY 2005
Pres. Bud.
$1,798,171.0
$237,149.8
$1,503,465.6
$57,555.6
4,708.5
FY 2005 Req. v.
FY 2004 Pres
Bud
$18,697.5
$26,159.7
($5,181.3)
($2,280.9)
-36.4
BACKGROUND AND CONTEXT

       Left uncontrolled, hazardous and nonhazardous wastes on the land can migrate to the air,
groundwater, and surface water, contaminating drinking water supplies,  causing acute illnesses
or chronic diseases, and threatening healthy ecosystems  in urban, rural, and  suburban  areas.
Hazardous  substances can kill  living organisms in lakes and rivers,  destroy vegetation in
contaminated areas, cause major reproductive complications in wildlife, and otherwise limit the
ability of an ecosystem to survive.
MEANS AND STRATEGY

       EPA will work  to  preserve  and restore  the  land  using the most  effective  waste
management and cleanup methods available. EPA will use a hierarchy of approaches to protect
the land:  reducing waste at its  source, recycling waste,  and managing waste effectively by
preventing spills and releases of toxic materials and cleaning up contaminated properties. The
Agency is especially concerned about threats to our most sensitive populations, such as children,
the elderly, and individuals with chronic diseases.

       The  Comprehensive Environmental Response,  Compensation,  and  Liability Act
(CERCLA, or Superfund)1 and the Resource Conservation  and Recovery. Act (RCRA)2 provide
 '42 U.S. Code 9601-9675
                                         III-l

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the legal authority for most of EPA's work toward this goal.  The Agency and its partners use
Superfund authority to clean up uncontrolled or abandoned hazardous waste sites; return the land
to productive use; and maximize the participation of potentially responsible parties in cleanup
efforts.   Under  RCRA, EPA works hi partnership with states and  Tribes  to  address risks
associated with leaking underground storage tanks and with the generation and management of
hazardous and non-hazardous wastes.

       EPA also uses authorities provided under the Clean Air Act,3Clean Water Act,4 and Oil
Pollution Act of 19905 to protect against spills and releases of hazardous materials. Controlling
the many risks posed by accidental and intentional releases of harmful substances presents a
significant challenge to protecting the land. EPA's approach integrates prevention, preparedness,
and response  activities to minimize  these risks.   Spill  prevention  activities keep harmful
substances from being released to  the environment.   Improving its  readiness to respond to
emergencies, through  training,  development  of clear  authorities,  and  provision of  proper
equipment, will ensure that EPA is adequately prepared to minimize contamination and harm to
the environment when spills do occur.

       In FY 2005, EPA will maintain its focus on three themes established in FY 2004, and one
additional theme on emergency preparedness, response and homeland security, in achieving its
objectives:

•   Recycling, Waste Minimization  and Energy Recovery:  EPA's strategy for reducing waste
    generation and increasing recycling is based on (1) establishing and expanding partnerships
    with  businesses,  industries,  states,   communities,  and  consumers;   (2) stimulating
    infrastructure development, environmentally responsible behavior by product manufacturers,
    users, and  disposers  ("product  stewardship"), and new technologies;   and (3) helping
    businesses,  government, institutions, and consumers by education, outreach, training,  and
    technical assistance.

•   One Cleanup Program: Through the "One Cleanup Program" the Agency  is looking across
    its programs to bring consistency and enhanced effectiveness to site cleanups.  The Agency
    will  work with its partners and  stakeholders to  enhance  coordination,  planning,  and
    communication across the full range of Federal, state, Tribal, and local cleanup programs.
    This effort will improve the pace, efficiency, and effectiveness of site cleanups, as  well as
    more folly integrate land reuse and continued use into cleanup programs.   The Agency  will
    promote  information  technologies  that describe  waste  site  cleanup and  revitalization
    information  in ways  that keep  the public and  stakeholders folly informed.  Finally, the
    Agency will develop  environmental outcome performance measures that report progress
2 42 U.S. Code 6901-6992k
342U.S.Code7401-7671q
4 33 U.S. Code 1251-1387
5 33 U.S. Code 2701-2761

                                          III-2

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   among all cleanup programs, such as the number of acres able to be reused after site cleanup.
   A crucial element to this effort is a national dialogue, currently underway, on the future of
   Superfund and other EPA waste cleanup programs.

•  Revitalization: The Agency's broad promotion of the successes of the Brownfields and other
   waste programs  focuses  on  restoring  and revising  contaminated lands.   The Land
   Revitalization Initiative complements the Agency's traditional cleanup programs by focusing
   on solutions that improve the quality of life and economy of affected communities.  Front
   end planning for the final, productive  use  of contaminated lands  enables the  cleanup
   programs, communities and interested stakeholders to more easily and quickly make cleanup
   decisions.  This integration of land reuse planning with the traditional cleanup processes will
   lead to faster, more efficient cleanups.

•  Emergency Preparedness, Response, and Homeland Security:   EPA has a major  role in
   reducing the risk to human health  and the  environment posed by accidental or intentional
   releases of harmful substances and oil. EPA will work to improve its ability to effectively
   respond to these incidents, working closely with other federal agencies within the National
   Response System.

       Reducing and Recycling Waste

       The Resource  Conservation Challenge (RCC) represents a major national effort to find
flexible yet protective ways to conserve  our  valuable natural resources by reducing waste,
recycling, and recovering energy.6 Through the RCC, EPA challenges  all Americans to make
purchasing and disposal decisions that conserve natural resources, save energy, reduce costs, and
preserve the environment for future generations.

       Establishing and Expanding Partnerships: EPA will establish and expand its partnerships
with industry, states, and other entities  to reduce waste and to develop and deliver tools that can
help businesses,  manufacturers, and  consumers.   Nationally-recognized programs,  such as
Waste Wise,7 which uses partnerships to encourage waste prevention and recycling, will serve as
models for  new  alliances among federal, state, and local  governments and  businesses  that
capitalize on voluntary efforts to reduce waste and increase recycling.

       EPA will also continue  to help its Tribal partners improve practices for managing solid
waste on Indian lands. EPA has direct implementation responsibility for the RCRA hazardous
waste  and Underground Storage Tank programs in Indian country.  Recognizing the unique
challenges encountered in Indian country, EPA will work  with  Tribes  on  a government-to-
government basis  that  affirms the federal  government's  vital trust  responsibility  and the
6 U.S. Environmental Protection Agency, Office of Solid Waste. Resource Conservation Challenge Web Site:
http:/Av\\^v.epa.gov/epaoswer/osw/consenre/index.htm. Washington, D.C. Last updated August 21,2003.
7 U.S. Environmental Protection Agency, Office of Solid Waste. WasteWise Program Web Site, About Waste Wise
Page: http:.///www.epa.gov/wastewise/wrr/cbuild.htm. Washington, D.C. Last updated September 27,2002.

                                          III-3

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importance of conserving natural resources for cultural uses.  EPA will conduct joint projects to
upgrade Tribal solid waste management infrastructure, developing plans, codes and ordinances,
recycling programs, and other alternatives to open dumping.  These efforts will help to prevent
open dumping in Indian country in the future and allow clean up of existing dumps, reducing the
risks that such dumps pose to human health and the environment.

       Stimulating Infrastructure  Development Product Stewardship, and New Technologies:
Another key strategy for reducing waste is fostering development of infrastructure that will make
it easier  for  businesses and  consumers to reduce the waste they generate;  acquire and use
recycled materials; and purchase products containing recovered materials. For example,  EPA
has established  voluntary  product  stewardship  partnerships with  manufacturers,  retailers,
governmental, and nongovernmental organizations to reduce the impacts that electronics and
carpets can have on the environment throughout their lifecycles.  EPA continues to promote the
development  of new and better recycling technologies and explore ways to obtain  energy or
products from waste.

       Providing Education. Outreach, Training, and Technical Assistance:  EPA works  with
major retailers, electronics manufacturers, and the amusement and motion picture industries to
revitalize, create, and display conservation, waste prevention, and recycling messages.  These
activities encourage smarter, more environmentally responsible behavior by consumers, young
people,  and  underserved communities. The Agency and  its partners design  activities that
encourage students and teachers to start innovative recycling programs and develop unique  tools
and projects to promote waste reduction, recycling, and neighborhood revitalization in Hispanic
and African-American communities and on Indian lands.

       Managing Hazardous Wastes and Petroleum Products Properly

       Recognizing that some hazardous  wastes cannot  yet  be completely  eliminated  or
recycled, the RCRA program works to reduce  the risks of exposure to  hazardous wastes by
maintaining a "cradle-to-grave" approach to waste management.

       Preventing Hazardous Releases from RCRA Facilities:  EPA's strategy for addressing
hazardous wastes that must  be treated or stored  is to achieve greater  efficiencies at waste
management  facilities through more focused permitting  processes and tighter standards where
appropriate.  EPA  works with  state,  Tribal, and local government partners to ensure that
hazardous waste management facilities have approved controls hi place and continues to strive
for safe waste management.

       EPA will  work with the authorized  states—specifically  those with a  large number of
facilities lacking approved controls in place— to resolve issues and transfer best practices  from
other states.  EPA also plans to study the universe of unpermitted facilities and work with states
to identify and resolve issues that may be preventing key categories of facilities from obtaining
permits or putting other approved controls in place.  To achieve  greater .efficiencies at facilities
                                          III-4

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that  treat or store hazardous  waste, the Agency  will promote innovative  technologies that
streamline permitting processes and improve protection of human health and the environment.

       Reducing Emissions from Hazardous Waste Combustion: EPA continues to develop and
issue  regulations on  emission  standards   for  hazardous   waste   combustion  facilities.
Implementation of these  regulations is key  to  reducing the emission of dioxins, furans,
paniculate matter, and acid gases.  Within 2 years from the date when EPA issues new limits,
facilities will conduct emission tests to demonstrate reductions. Additional periodic tests will
ensure continued compliance with the limits established for emissions.

       Preventing Releases from Underground  Storage Tank Systems:  EPA recognizes that the
size and diversity of the regulated community put state authorities in the best position to regulate
Underground Storage Tanks (USTs) and to set priorities.  RCRA Subtitle I  allows state UST
programs approved by EPA to operate in lieu of the federal program.8 Except  in Indian country,
even states that have not received formal state program approval from EPA are in most cases the
primary implementing agencies and receive annual grants from EPA.

       While the frequency and severity of releases  from  UST systems have  been greatly
reduced, EPA and its state partners have observed that releases are still occurring.  EPA will
continue to work with its state and Tribal partners to prevent and detect petroleum releases from
USTs by ensuring that compliance with detection prevention requirements (spill, overfill, and
corrosion protection)  are a national priority.  While the  vast majority of the approximately
683,000  active USTs have the regulatory equipment, significant work remains to ensure that
UST owners and operators maintain and operate  their systems properly.9  In  FY2005, the
Agency will continue its performance evaluation of new or upgraded UST systems to better and
more quickly  identify releases and their causes.  The Agency will also continue to identify
opportunities for improving UST system performance.

       To protect our Nation's groundwater and drinking water from petroleum releases, EPA
will continue to support state programs; strengthen partnerships among stakeholders; and provide
technical and compliance  assistance, and  training to promote and  enforce UST facilities'
compliance. In addition, EPA will continue its work to obtain states' commitments to increase
their inspection and enforcement presence if state-specific  goals are not met.  The Agency and
states will use innovative compliance approaches, along with outreach and education tools,  to
bring more tanks into compliance.

       The Agency will also provide guidance to foster the use of new technology to enhance
compliance.  For example, the presence  of methyl-tertiary-butyl-ether (MTBE) in gasoline
increases the importance of preventing and rapidly detecting releases, since MTBE cleanups can
8 42 U.S. Code 9601-6992k
9
  Memorandum from Cliff Rothenstein, Director, EPA Office of Underground Storage Tanks to Underground
Storage Tank Division Directors in EPA Regions 1-10. June 19,2003. FA 2003 Semi Annual (Mid-Year) Activity
Report
                                          III-5

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cost 100 percent more than cleanups involving other gasoline contaminants.10 The Agency will
focus its efforts on reducing UST releases and increasing early detection of petroleum products,
including MTBE, by further evaluating the performance of compliant UST systems.

       Preparing for and Responding to Emergencies

       EPA plays a major role in reducing the risks that accidental and intentional releases of
harmful substances and oil pose to  human health and the environment.   Under the National
Response  System (NRS), EPA evaluates and responds to thousands of releases annually. The
NRS is a  multi-agency preparedness and response mechanism that includes the following key
components:   the National Response Center,  the National Response  Team (NRT) which is
composed  of 16 Federal  agencies, 13  Regional  Response Teams,  and Federal On-Scene
Coordinators (OSCs).  These organizations work with state and local officials to develop and
maintain contingency plans that will enable the Nation to respond effectively to hazardous
substance  and oil emergencies.  When an incident occurs, these groups coordinate with the OSC
in charge to ensure  that all necessary resources, such as personnel and equipment, are available
and that  containment,  cleanup, and  disposal  activities  proceed  quickly, efficiently, and
effectively. EPA's primary role in the NRS is to serve  as the Federal OSC for spills and releases
in the inland zone.  As a result of NRS efforts, the Nation has successfully contained many major
oil spills and releases of hazardous substances, minimizing the adverse impacts on human health
and the environment.

       Preparing for Emergencies:  Preparedness on a national  level is essential to ensure that
emergency responders are able to deal with multiple,  large-scale emergencies, including those
that may  involve chemicals,  oil, biological agents, or radiological incidents.  Over the next
several years, EPA will enhance its  core emergency response program to respond quickly and
effectively to chemical,  oil,  biological, and radiological  releases.  EPA also will improve
coordination  mechanisms  to  respond to  simultaneous,  large-scale  national  emergencies,
including homeland security incidents.  The Agency will focus its efforts on Regional Response
Teams and coordination  among Regions; health and  safety  issues,  including  provision of
clothing  that protects and identifies  responders, training, and  exercise; establishment  of
delegation and warrant authorities; and response  readiness, including equipment, transportation,
and outreach. The criteria for excellence in the core emergency response program will ensure a
high level of overall readiness throughout the Agency and improve its ability to support multi-
Regional responses.

       In  addition to enhancing its readiness capabilities, EPA will work to improve internal and
external coordination and communication mechanisms.  For example,  as part of the National
Incident Coordination Team,  EPA will continue  to improve its policies, plans, procedures, and
decision-making processes for  coordinating responses  to  national emergencies.   Under the
Continuity of Operations/Continuity  of Government program, EPA will upgrade and test plans,
10 New England Interstate Water Pollution Control Commission. 2000. A Survey of Site Experiences with MTBE
Contamination at LUST Sites. Web Site: http:// epa.gov/superfund/sites/npl/current.

                                          m-6

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facilities, training, and equipment to ensure that essential  government business can continue
during a  catastrophic emergency.   NRT  capabilities  are being  expanded  to coordinate
interagency activities during large-scale responses.  EPA will coordinate its activities with the
Department of Homeland Security, Federal Emergency Management Administration (FEMA),
Federal Bureau of Investigation (FBI), other Federal agencies, and state and local governments.
EPA will also continue to clarify its roles and responsibilities so that Agency security programs
are consistent with the national homeland security strategy.

       Responding to Hazardous Substance Releases and Oil Spills:  Each year, EPA personnel
assess, respond to, mitigate, and clean up thousands of releases, whether accidental, deliberate,
or naturally occurring. These incidents range from small spills at chemical or oil facilities to
national disasters, such as hurricanes and earthquakes, to terrorist events like the 2001 World
Trade Center and anthrax attacks, to the 2003 Columbia shuttle tragedy.

              EPA will work to improve its capability to respond effectively to incidents that
may involve harmful chemical, oil, biological, and radiological substances.  The Agency will
explore improvements in field and personal  protection equipment and response training and
exercises;  review  response data  provided  in the "after-action" reports prepared  by  EPA
emergency responders following a release; and examine "lessons learned" reports to identify
which activities work and which need to be improved.  Application of this information and other
data will advance the Agency's state-of-the-art emergency response operations.

       Preventing Oil Spills:  An important component of EPA's land strategy is to prevent oil
spills from reaching the Nation's waters.  Under the Oil Pollution Act,11 the Agency requires
certain facilities  (defined hi 40 CFR 112.2) to  develop and implement spill prevention, control,
and countermeasure (SPCC) plans. SPCC plans ensure that facilities put in place containment
and other countermeasures to prevent oil spills from reaching navigable waters.  Facilities that
are unable  to provide secondary containment,  such as berms around an oil storage tank, must
provide a spill contingency plan that details cleanup measures to be taken if a spill occurs.
Compliance with these requirements reduces the number of oil spills that reach navigable waters
and prevents detrimental effects on human health and the environment should a spill occur.

       Controlling Risks  to Human Health and the Environment at Contaminated Sites

       Leaching contaminants can foul drinking water in underground aquifers used for wells or
surface waters used by public water intakes. Contaminated soil can result in human ingestion or
dermal absorption of harmful substances. Contamination can also affect subsistence resources,
including resources subject to special protections through treaties between Federal and Tribal
governments.  Furthermore, because of the risks it poses, contaminated land may not be available
for use.

       EPA and its partners work to clean up contaminated land to levels sufficient to control
risks  to human  health and the environment  and to return  the land  to productive use.  The
11 33 U.S. Code,6901 -6992k
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Agency's cleanup  activities,  some  new  and  some  well-established,  include  removing
contaminated  soil,  capping  or containing  contamination in  place, pumping and  treating
groundwater, and bioremediation.

       EPA uses a variety  of tools to accomplish cleanups:  permits,  enforcement  actions,
consent agreements, Federal Facility Agreements, and many other mechanisms.  As part of
EPA's One Cleanup Program Initiative, all levels of government will work together to ensure
that appropriate cleanup tools are used; that resources, activities, and results are coordinated with
partners  and  stakeholders and communicated to the public effectively; and that cleanups are
protective and contribute to  community revitalization. This approach reflects EPA's efforts to
coordinate across  all of its cleanup  programs, while maintaining  the  flexibility  needed to
accommodate differences in program authorities and approaches.

       EPA  fulfills its cleanup and waste  management responsibilities on Tribal lands by
acknowledging Tribal sovereignty  and recognizing Tribal  governments as being the  most
appropriate authorities for setting standards, making policy decisions, and managing programs
consistent with Agency standards and regulations.

       Through strong policy, leadership, program administration,  and a  dedicated workforce,
EPA's  cleanup programs  will  merge  sound  science,  cutting-edge  technology,  quality
environmental information, and stakeholder involvement to protect the Nation from the harmful
effects of contaminated property.  To accomplish its cleanup goals, the  Agency continues to
forge partnerships and develop outreach and education strategies.

       EPA and its partners follow four key steps to accomplish cleanups and control risks to
human health and the environment:  assessment, stabilization, selection of appropriate remedies,
and implementation of remedies.  The Agency will continue to work with  Federal, state, Tribal,
and local government partners at each step of the process to identify facilities and sites requiring
attention and to monitor changes  in priorities.  For example, EPA is collecting Tribal program
baseline  data for the Superfund program and will modify the Superfund data system  to more
accurately track sites of concern to Tribes, along with those situated on Indian lands. As systems
and approaches change, cleanup programs will revise guidance appropriately.

       Usable land is a valuable  resource.  However, where contamination presents a real or
perceived threat to human health and the environment, options for future land use at that site may
be limited. EPA's cleanup programs have set a national goal of returning formerly contaminated
sites  to  long-term, sustainable, and productive use.   This  goal creates greater impetus for
selecting and implementing remedies that, in addition to providing clear environmental benefits,
will support future land use providing greater economic and social benefits.

       Maximizing Potentially Responsible Party Participation at Superfund Sites:

       Enforcement authorities play a critical role in all Agency cleanup  programs.  However,
they have an additional and unique role under the Superfund program: they are used to  leverage

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private-party resources to conduct a majority of the cleanup actions and to reimburse the federal
government for cleanups financed by the Trust Fund. EPA will continue to pursue the following
two strategies for limiting the use of trust funds.

       Applying Superfund "Enforcement First":  Historically, EPA has achieved at least $6 in
private-party cleanup commitments for every $1 spent on enforcement.  The Agency will
continue to use  its enforcement authorities to  achieve this end.  The Superfund program's
"Enforcement  First" strategy will allow EPA to  focus limited Trust Fund resources on sites
where viable, potentially responsible parties either do not exist or lack the funds or capabilities to
conduct the cleanup. By taking enforcement actions at sites where viable, liable parties do exist,
EPA will continue to leverage private-party dollars so that Trust Fund money is used only when
absolutely necessary to clean up hazardous waste sites.

       Recovering Costs:  Cost recovery is  another way to leverage private-party resources
through enforcement.  Under Superfund, EPA has  the authority to compel private parties to pay
back Trust Fund money spent to conduct cleanup activities.  EPA will continue its efforts to
address 100 percent of the Statute of Limitations cases for Superfund sites with unaddressed total
past costs equal to or greater than $200,000 and to report the value of costs recovered.

       Research

       The FY 2005  land  research program supports the Agency's  objective  of reducing or
controlling potential risks to human health and the environment at contaminated waste sites by
accelerating scientifically-defensible and cost-effective decisions for cleanup at  complex sites,
mining sites,  marine  spills,  and  Brownfields  in  accordance  with  the Comprehensive
Environmental Response, Compensation, and Liabilities Act (CERCLA).

       The Agency will conduct research to:  1) improve the range and scientific foundation for
contaminated  sediment remedy selection options  through  improved site  characterization, and
increased understanding of different remedial options; 2) determine the performance and cost
benefit of alternative groundwater remediation technologies and provide tools for characterizing
and assessing  groundwater contamination to program offices for use hi state and local remedial
decisions; 3) provide tools and methods that will allow the Agency to accurately and efficiently
assess, remediate, and manage soil and land contamination; and 4) provide tools, methods, and
models, and technical support to characterize the extent of multimedia site contamination.

       Multimedia  decision-making, waste management, and combustion constitute the three
major  areas of research under the Resource  Conservation  and  Recovery Act (RCRA) in FY
2005,  as the Agency works toward preventing releases through proper facility management.
Multimedia research will focus on resource conservation (e.g., electronic waste recycling  and
waste-derived products), corrective action,  and  multimedia  modeling.  Waste management
research will develop more cost-effective ways to manage/recycle non-hazardous wastes and will
examine other remediation technologies, while combustion research will  continue to focus on
characterizing and controlling emissions from bioreactors and industrial combustion systems.

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       Several mechanisms are in place to ensure a high-quality waste research program at EPA.
The Research Strategies Advisory Committee (RSAC) of EPA's Science Advisory Board (SAB),
an independent chartered Federal Advisory Committee Act (FACA) committee, meets annually
to conduct an in-depth review and analysis of EPA's Science and Technology account.  The
RSAC provides its findings to the House Science Committee and sends a written report on the
findings to EPA's Administrator  after every annual review.   Moreover,  EPA's  Board of
Scientific Counselors (BOSC) provides counsel to the Assistant Administrator for the Office of
Research and Development (ORD) on the operation of ORD's research program.  Also, under
the Science to Achieve Results (STAR) program, all research projects are selected for funding
through a rigorous competitive external peer review process designed to ensure that only the
highest quality efforts receive funding support.  Our scientific and technical work products must
also undergo either internal or external peer review, with major or significant products requiring
external peer  review.  The Agency's Peer Review Handbook (2nd Edition) codifies procedures
and guidance for conducting peer review.
STRATEGIC OBJECTIVES AND FY 2005 ANNUAL PERFORMANCE GOALS

Preserve Land.  By 2008, reduce adverse effects to land by reducing waste generation,
increasing recycling, and ensuring proper management of waste  and petroleum products at
facilities in ways that prevent releases.

Restore Land.  By 2008, 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.

Enhance Science and Research.  Through 2008, provide and apply sound science for protecting
and restoring land by conducting leading-edge research and developing a better understanding
and characterization of environmental outcomes under Goal 3.

HIGHLIGHTS

       In FY 2005,  EPA and its partners  will preserve and restore the land by  reducing,
recycling, and managing wastes, preventing and responding to releases of harmful substances,
and cleaning up contaminated land. The following accomplishments are examples of what has
been done by the Agency to achieve these purposes:

       •   completed 303,120 cleanups of confirmed releases from Federally-regulated LUSTs
       since 1987;

       •   conducted over 7,900 removal response actions from 1982 through January 6, 2004;

       •   completed clean up construction at 890 Superfund National Priorities List Sites
       through January 6, 2004;

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•  assessed over 45,300 potential Superftmd sites through January 6, 2004;

•  removed more than 33,400 sites from the Comprehensive Environmental Response,
Compensation and Liability Information System (CERCLIS) waste site list;

•  responded to or monitored 300 oil spills in a typical year;

•  699 construction projects are ongoing at over 430 sites;

•  expanded the Waste Wise Partnership to more than 1,300 partners who recycled over
9 million tons of waste, and prevented over 400,000 tons of waste;

•  enrolled 50 Coal Combustion  Products  Partners, who are investigating ways to
increase the use of coal combustion products (CCPs) in construction and to promote other
beneficial uses of CCPs;

•  determined that an investment of $ 1 million in Jobs Through Recycling grants helped
businesses create more than 1,700 jobs and $290 million in capital investment;

•  provided  over $6.0 million to thirty-one Tribes to clean up open dumps  and $3.1
million to  47 Tribes to develop hazardous  waste management programs  through the
Tribal Solid Waste Interagency Workgroup;

»  developed e-permitting tools to expedite and simplify the permitting  process  and
provide better public access to permitting information;

•  financial assurance regulations reduced the number of sites that must be cleaned up
under  either state or Federal authorities (such as Superfund removals) by  requiring
facilities to have financial assurance for third party liability, closure, and completion of
corrective action;

•  83 percent of hazardous waste  facilities  have  approved controls (permits) hi place,
exceeding the 2005 goal of 80 percent;

•  the "worst facilities first" strategy resulted in over  1,200 facilities achieving the
Current Human Exposures Under Control environmental indicator goal and over 1,000
facilities achieving  the  Migration  of  Contaminated  Groundwater  Under  Control
environmental indicator goal;

•  secured greater  than $20 billion in  PRP commitments, through response and cost
recovery settlements, over the life of the Superfund program; and
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       •  resolved potential liability of 24,700 small volume waste contributing parties through
       more than 475 de rninimis settlements.

       In FY 2005, contaminated sites research will:  1) reduce uncertainties associated with
soil/groundwater sampling and analysis; 2)  reduce  the  time and cost associated  with site
characterization and site remediation activities; and 3) develop and demonstrate more effective
and less costly remediation technologies involving complex sites and hard-to-treat wastes. Other
proposed work will enhance and accelerate current contaminated sediments research  efforts,
providing the  data needed to make and support  crucial decisions on high  impact  and high
visibility sites.  The Superfund Innovative Technology Evaluation (SITE) program fosters the
development  and  use  of lower  cost  and more  effective characterization  and monitoring
technologies, as well as risk management remediation  technologies for  sediments, soils, and
groundwater. In FY 2005,  EPA will complete  at least  four SITE demonstrations, with emphasis
on non-aqueous phase liquids (NAPLs) and sediments.

       Waste management research hi FY 2005 will work to advance the multimedia modeling
and uncertainty/sensitivity analyses  methodologies that support core RCRA program needs as
well as emerging RCRA resource conservation needs.  Waste management research will also be
conducted to improve the management of both  solid and hazardous wastes.
EXTERNAL FACTORS

       EPA's ability to respond as the Federal On-Scene Coordinator for releases of harmful
substances hi the inland zone will be affected by several external factors. The National Response
System ensures that EPA will respond when necessary, but relies heavily on the ability of
responsible parties and state, local, and Tribal agencies to respond to most emergencies. The
need for EPA to respond is a function of the quantity and severity of spills that occur, as well as
the capacity of state, local, and Tribal agencies to address spills.

       EPA's  ability  to respond  to homeland  security  incidents may  be  affected  by
circumstances  surrounding each event.  For instance, if travel or  communication is severely
impeded, EPA's response may be delayed and its efficiency compromised. Also, hi the case of a
single large-scale incident, removal program  resources will most likely be concentrated on that
response,  thus reducing EPA's ability to address other emergency releases.  In severe cases,
EPA's current emergency response workforce and resources may not be sufficient to address a
large number of simultaneous large-scale incidents.

       A  number of external  factors could  also affect the Agency's ability to achieve  its
objectives for cleanup and prevention.  These factors include Agency reliance on private-party
response and state and  Tribal  partnerships, development of new environmental technologies,
work  by  other Federal agencies, and statutory barriers.   Achieving the release prevention
objectives and attaining FY 2005 targets will depend heavily on the participation of states that
have been authorized or approved to be the primary implementors of these programs.

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       Attaining  EPA's waste reduction  and recycling  objectives will depend  on  the
participation of Federal agencies, states, Tribes, local governments, industries, and the general
public in partnerships aimed at reducing waste generation and increasing recycling rates.  EPA
provides national leadership hi the areas of waste reduction and recycling to facilitate public and
private partnerships that can provide the impetus for government, businesses, and citizens to join
in the campaign to significantly reduce the amount of waste generated and ultimately sent for
disposal. Further, both domestic and foreign economic stresses can adversely affect markets for
recovered materials.

       State programs are primarily responsible for implementing the RCRA Hazardous Waste
and UST programs.   EPA's ability to achieve its goals for these programs depends on  the
strength of state programs, including the level of funding contributed by states to these programs.

       The Agency's ability to achieve its goals for Superfund construction  completion is
partially dependent upon the performance of cleanup activities by the Department of Defense
(DOD) and the Department  of Energy (DOE).  In  addition to construction completion,  the
Agency must  rely on the efforts  of DOD  and DOE  to establish  and maintain Restoration
Advisory Boards (RABs) and  Site Specific Advisory Boards (SSABs).  RABs and SSABs
provide a forum for stakeholders to offer advice and recommendations on the restoration of
Federal Facilities.  Program  success also partly depends  on private party response and State
partnerships, development of new  environmental technology, work by other federal agencies,
and statutory barriers. Further,  EPA also coordinates its  activities with other entities, such as
PRP negotiations and agreements with states and Tribes.
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                             Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                         Land Preservation and Restoration

OBJECTIVE: Preserve Land

      By 2008, reduce adverse  effects to land by reducing waste generation, increasing
recycling, and ensuring proper management of waste and petroleum products at facilities in ways
that prevent releases.

                                Resource Summary
                                (Dollars in Thousands)

Preserve Land
Environmental Program & Management
Science & Technology
Building and Facilities
State and Tribal Assistance Grants
Leaking Underground Storage Tanks
Inspector General
Total Workyears
FY2003
Actuals
$205,443.3
$115,732.5
$950.0
$1,398.3
$85,944.2
$466.5
$951.6
717.7
FY2004
Pres. Bud.
$210,990.1
$121,103.9
$0.0
$1,478.0
$86,436.9
$809.4
$1,161.9
740.9
FY2005
Pres. Bud.
$237,149.8
$121,177.4
$0.0
$1,571.1
$112,236.9
$807.8
$1,356.6
725.4
FY 2005 Req. v.
FY 2004 Pres Bud
$26,159.7
$73.5
$0.0
$93.1
$25,800.0
($1.6)
$194.7
-15.5
                                  Program Project
                                (Dollars in Thousands)

Categorical Grant: Tribal General
Assistance Program
Congressionally Mandated Projects
Categorical Grant: Hazardous Waste
Financial Assistance
Categorical Grant: Underground Storage
Tanks
Compliance Assistance and Centers
LUST/UST
RCRA: Waste Management
RCRA: Waste Minimization & Recycling
Administrative Projects
FY2003
Actuals
$364.9
$2,252.2
$73,923.5
$11,655.8
$401.9
$6,765.8
$59,706.6
$12,107.4
$38,265.2
FY2004
Pres. Bud.
$0.0
$0.0
$74,486.9
$11,950.0
$586.5
$7,144.2
$67,381.6
$8,637.4
$40,803.5
FY2005
Pres. Bud.
$0.0
$0.0
$74,286.9
$37,950.0
$585.3
$7,094.5
$67,422.3
$10,107.9
$39,702.9
FY 2005 Req. v.
FY 2004 Pres Bud
$0.0
$0.0
($200.0)
$26,000.0
($1.2)
($49.7)
$40.7
$1,470.5
($1,100.6)
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Categorical Grant: Tribal General
Assistance Program
TOTAL
FY2003
Actuals
$364.9
$205,443.3
FY2004
Pres. Bud.
$0.0
$210,990.1
FY2005
Pres. Bud.
$0.0
$237,149.8
FY2005Req.v.
FY 2004 Pres Bud
$0.0
$26,159.7
FY 2005 REQUEST

Results to be Achieved under this Objective

       Preventing pollution  before it is generated  and poses harm is  often less costly  than
cleanup and remediation.  Source reduction and recycling programs can often increase resource
and energy efficiencies and thereby reduce pressures on the environment.  To meet its objective
for reducing materials use through product and process redesign, and increasing materials and
energy recovery from wastes otherwise requiring disposal, EPA intends to achieve the following
results in FY 2005:

       •  Maintain the national average municipal solid waste generation rate at no more than
       4.5 pounds per person per day.

       •  Increase recycling of the total annual municipal solid waste produced from 34 to 35
       percent.

       To meet its objective for reducing  releases to the environment by managing hazardous
wastes and petroleum products properly, EPA intends to achieve the following results in FY
2005:

       •  Prevent releases from RCRA hazardous waste management facilities by increasing
   the number of facilities with permits or other approved controls by 2.8 percent over the FY
   2004 level.  At  the end  of FY 2002,  83 percent of the facilities 12 had permits or other
   approved controls.

       •  Increase  the  percentage  of UST facilities  that  are in significant operational
   compliance with both release detection and release prevention (spill, overfill, and corrosion
   protection) requirements by 1  percent from the baseline established in FY 2004, out of a total
   estimated universe of approximately 258,000 facilities.

       •  Limit the number  of confirmed releases at  UST facilities  to  10,000 or  fewer.
   (Between FY 1999 and FY 2003, confirmed releases averaged 13,600.)
12 Approximately 2,750 hazardous waste management facilities are currently regulated under RCRSA. EPA plans to
reassess this universe in 2006. Facilities that started activities subject to hazardous waste permitting after October 1,
1997 will be included in the count; facilities that should not have counted will be removed.
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       The Agency is also committing, in the 2003 Strategic Plan, to two strategic targets for
which there are not yet annual performance measures for FY 2005.  These 2008 targets are to
update controls for preventing releases at 150 facilities that are due for permit renewal by the end
of 2006, and to reduce hazardous waste combustion facility emissions of dioxins and furans by
90 percent and particulate matter by 50 percent from 1994 levels of 880 grams/year and 9,500
tons/year, respectively.    Regarding the  target  for permit renewals, EPA  will  develop a
methodology to track renewals and perform outreach with the states to encourage them to enter
these data into their systems. The Agency anticipates setting an annual performance goal for FY
2006.  For the hazardous waste facility emissions, EPA plans to have the Maximum Air Control
Technology (MACT) revised standards promulgated in 2005 pursuant to a settlement agreement
among the parties to that litigation.

RCRA Waste Minimization and Recycling

       RCRA directs EPA to promote a  reduction in the amount of waste generated and to
improve recovery  and  conservation  of materials through recycling. The RCRA  program
emphasizes a national policy focusing on a hierarchy of waste management options that
advocates source reduction, reuse and recycling over treatment and disposal.
                         The RCRA Program - Waste Universe Diagram
                 Total Quantity of Wastes - 2.6 billion tons (excluding wastewater)
                 Industrial D Waste -
                      (214)
 Construction &
Demolition (350)
       Municipal Solid
        Waste (232)
                                                                     Other (6)
                           Hazardous
                           Waste (34)
                                                              Special Waste -
                                                               Bevill: (1782)
       As depicted in the waste universe diagram, 2.6 billion tons of solid waste is generated
 annually by America's industries, businesses, institutions, and individuals.  If disposed, these
 wastes represent a huge potential liability to health, the environment, and the economy. When
 mismanaged,   the  more  hazardous  substances  hi  these  wastes,   such   as  persistent,
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bioaccumulative, and toxic organics, can cause severe damage to biota, air, and water resources.
Even more benign waste materials such as scrap tires pose danger when stockpiled, serving as
habitat  for  disease-transmitting  rodents and mosquitoes,  and igniting into  dangerous  and
unhealthy fires which can burn for months, polluting the air, land, and surface and ground water.
Disposal of waste materials squanders  valuable resources  which could otherwise be  reused,
recycled,  or converted  to useful energy.   Reuse and recycling avoid  the financial  and
environmental  costs of extracting, harvesting, and processing virgin materials  as well as the
costly burden of waste disposal.  Proper handling and disposal of these burgeoning wastes are a
burden to society through  their potential liability as well as through the direct costs of waste
management.  Industries, businesses, institutions, and individuals spend millions of dollars each
year on waste management.  Emissions from waste disposal can contribute to global warming
and contaminate surface and ground water supplies.  Potential  emissions from waste disposal
must be controlled or mitigated, adding to the costly burden of waste management. As disposal
facilities become depleted, new land must  be taken  from productive use and converted, at
substantial cost, to an acceptable disposal facility.

       Reducing waste generation has clear benefits in combating the ever-growing stream of
Municipal Solid Waste (MSW).  MSW includes waste generated from residences, commercial
establishments, institutions, and industrial non-process  operations.  Annual generation of MSW
grew steadily from 88 million to 232 million tons between 1960 and 2000. 13 In FY 2005, EPA's
municipal solid waste program will  implement coordinated strategies to achieve its strategic
target of maintaining the national average municipal solid waste generation rate to no more than
4.5 pounds per person per day. These strategies will include source reduction (also called waste
prevention), recycling (including  composting),  combustion with energy  recovery,  and land
filling. Preference will be given to strategies that maximize the diversion of waste from disposal
facilities, with source reduction  (including reuse)  as the highest priority.   Implementation of
these strategies will result in an ambitious increase in the total annual portion of MSW recycled
nationally from 31 percent in 2002 to 35 percent by FY 2005.

       Influencing the nation's waste generation is a daunting task. In the calendar year 2000,
the growth of recycling slowed  from the pace in the early 1990s.14 Several factors, such as
reaching audiences  where recycling is  more difficult (e.g., high rise apartments, office  and
business settings, and public facilities) and changes in  the waste stream (e.g., rapid turnover of
new electronics products, increased packaging from e-commerce and new beverage containers)
have  contributed to a slower growth than  expected  in the recycling rate.  EPA  intends to
overcome  these barriers  by  implementing  a diversified strategy through  the  Resource
Conservation Challenge (RCC).
13 U.S. Environmental Protection Agency: October 2003. Municipal Solid Waste in the United States: 2001 Facts
and Figures, Executive Summary. Washington, D.C. U.S. Government Printing Office. Available online at
http://epa.gov/epaoswer/non-hw/muncpl/msw99.htm. Last updated November 5,2003.
14 U.S. Environmental Protection Agency: October 2003. Municipal Solid Waste in the United States:  2001 Facts
and Figures, Executive Summary. Washington, D.C. U.S. Government Printing Office. Available online at
http://epa.gov/epaoswer/non-hw/muncpl/msw99.htm. Last updated November 5,2003.

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       In the hazardous waste arena, along with the waste rninimization partnerships discussed
in Goal 5, the Agency will be reviewing where regulatory innovations can increase the rate of
recycling.  EPA will issue a rule encouraging the recycling of lead-containing cathode ray tubes
(CRTs),  and investigate whether other electronic devices are  being recycled safely and how
electronics recycling can be increased. In addition, the Agency will work with specific industry
sectors (e.g., printing and metal finishing) on innovative approaches to promote safe recycling.
                              EPA launched the RCC  as a major national effort to find
                        flexible, yet more protective ways to conserve our valuable natural
                        resources through waste reduction, energy recovery and recycling.
                        Through  the RCC,  EPA  challenges  every American  to  prevent
                        pollution and promote recycling and reuse; and conserve energy and
                        materials.
       In FY 2005, EPA's strategy for reducing waste generation and increasing recycling will
  focus on three key principles:

       •     Establishing and expanding partnerships by promoting the RCC
       •     Stimulating  infrastructure   development,   product  stewardship  and   new
             technologies
       •     Providing education, outreach, training and technical assistance

       Establishing and  expanding partnerships by promoting the RCC:   One strategy for
accomplishing these objectives is to  build and foster  voluntary partnerships with industries,
states,  Tribes, and other entities. These partnerships provide smarter, faster, voluntary solutions
that reduce adverse effects to land.

       One example of  a  RCC  voluntary partnership  is the  Coal Combustion  Products
Partnership (C2P2).   The purpose of C2P2 is to increase the use of coal combustion products
(CCPs) in construction and to promote other beneficial uses of CCPs.  Use of CCPs: reduces
future  greenhouse gas emissions (when it displaces the need for Portland cement in concrete);
reduces the need for additional landfill capacity; and reduces the need  for  mining virgin
resources. This partnership was launched hi January 2003 and already has 50 partners. In 2005,
EPA will continue  to work with the  Utility Solid Waste Activity  Group (USWAG),  the
American Coal Ash Association (ACAA), and other stakeholders that manufacture, purchase, or
use coal combustion products to provide EPA with a more effective solution to  enhance CCP
diversion from disposal and explore the beneficial use of these valuable products.

       EPA's nationally recognized programs, such as Waste Wise, serve as models for the RCC
by establishing and expanding partnerships  among Federal, state,  and local governments and
businesses.  These  partnerships capitalize on voluntary efforts to reduce waste and increase
recycling. In FY 2003, Waste Wise grew to more than 1,300 partners.  Partners recycled over 9

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million tons of waste, and prevented over 400,000 tons of waste.  EPA estimates that these
Waste Wise partners' efforts have prevented the emission of nearly 3.5 million metric tons of
carbon equivalent, similar to removing more than 2 million cars from the road for one year.15

       In FY  2005, EPA's Waste Wise program will pursue new collaborations with states to
enhance partner services, reduce duplication of effort between the Federal and state governments
and encourage prospective organizations to join the program. In addition to these expanded state
collaborations, the WasteWise program will facilitate progress within its 81  member Federal
partner organizations and 40 Tribal organizations.  EPA also plans to continue its WasteWise
annual  awards program to  recognize partners who report significant achievements hi  waste
prevention, recycling, and buying or manufacturing recycled-content products.

       Jobs Through Recycling (JTR) is  another RCC program that has an active network of
state and Regional contacts who develop innovative programs and provide useful information to
recyclers and related businesses.  16 Since  launching JTR hi 1994, EPA has awarded  more than
$7.2 million in grants to 36 states,  five  Tribes,  and three multi-state organizations.  Also, a
review of four well-established programs  shows that an investment of $1 million hi JTR grants
has helped businesses create more than 1,700 jobs and $290 million hi capital investment. In FY
2005, JTR will continue to promote their core programs.

       EPA also plans  to  expand its  efforts to encourage resource conservation and safe
management of construction and demolition (C&D) debris.  EPA will work to establish a formal
partnership with the military services to make deconstruction a standard operating procedure,
and  meet  specific,  quantitative building  deconstruction  goals.  Unlike  demolition,  which
completely destroys a  structure,  deconstruction takes a structure apart and preserves valuable
components for  reuse.  EPA will  also  expand  coordination with state,  local, and Tribal
governments to address C&D debris issues,  including the management of lead-based paint and
other problematic components of the C&D  waste stream.   Finally, in FY 2005 EPA plans to
increase the number of partners participating in the Building Challenge, begun hi FY 2002 under
WasteWise. The Building Challenge is a voluntary partnership that provides  its partners with
technical assistance and recognition  for  reducing C&D waste and for purchasing recycled-
content building products.  Currently, twenty-two partners have made the Building  Challenge
pledge.

       Stimulating infrastructure development, product stewardship, and new technologies:  In
FY 2005, EPA will promote strategies that make it easier for businesses and consumers to design
and purchase more environmentally sensitive  products, extend the life and usefulness of these
products, and ensure the safe recycling or  reuse of these products when one consumer no longer
  Carbon equivalence was calculated using waste reduction quantities reported by the WasteWise partners and
EPA's waste reduction model, as described in U.S. Environmental Protection Agency: May 2002. Solid Waste.
^Management and Greenhouse Gases: A Life-Cycle Assessment of Emissions and Sinks. Available online at
httpi/^pa.gov/'mswclimate/greengas.iJdf U.S. Environmental Protection Agency. Jobs Through Recycling Web
Site: http://www.epa.gov/jtr.  Washington, D.C. Last updated December 18,2003.

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needs them.  The  Agency has  implemented several initiatives to establish voluntary product
stewardship  partnerships  with   manufacturers,  retailers,  recyclers,  governmental  and
nongovernmental organizations to develop and implement sector-specific strategies.

       For example, to address one of the RCC challenge areas - electronic waste — EPA is
working  with those in the information technology industry to develop  projects that  will
significantly cut back on the amount of electronic waste  produced each year. With today's
increasing demand for faster computers,  small cellular phones, and personal digital assistants
(PDAs),  electronic  waste is  the fastest-growing  waste  stream.  Electronic  products  and
components are made of valuable materials that should be reused or recycled and can contain
hazardous materials, such as lead and  mercury, thus  posing environmental problems when
disposed of improperly.   In FY 2005, EPA will continue to support the Electronics Product
Environmental Assessment Tool (EPEAT). EPEAT is a purchasing tool used to drive  design
innovations by manufacturers.   In FY 2005, EPEAT will be finalized, incorporating feedback
from its use during a pilot phase, and an independent organization will launch EPEAT. Also on
the design front, EPA will extend the Federal Electronics Challenge in FY  2005 to additional
Federal agencies.  The Challenge will use the EPEAT tool  and guidelines for environmentally
safe recycling.

       Another important Agency-lead design effort targeted to the electronics sector is EPA's
"Plug-In To eCycling" program.  Through partnerships with private and public entities, Plug-In
is  making  available to Americans more opportunities to recycle  their old electronics and
communicating why it is important to do so. EPA is focusing attention on reducing the waste
stream as well as recycling waste that can not be eliminated, and will work with project partners
in a summit to develop  an action plan for identifying and carrying out voluntary,  shared
responsibility roles at a national level.

       As part  of  the National Electronics Product Stewardship  Initiative (NEPSI), EPA will
continue to  work  with electronics  manufacturers,  recyclers, retailers,  state  and  local
governments, and  non-governmental  to  collect  and finance the recycling  of  old consumer
electronics.  In FY  2005, EPA plans to use the finalized environmentally  safe management
guidelines for end-of-life electronics as part of the national voluntary recycling program and the
Federal Electronics Challenge.  These guidelines are intended to optimize resource recovery and
minimize risks during recycling.

       Carpet America Recover Effort (CARE)  is an industry-led, multi-stakeholder effort to
build  and  strengthen  the carpet  reclamation  and recycling infrastructure. This voluntary
partnership seeks to divert 40 percent of carpet  from landfills by calendar year 2012 through
recycling, reuse, and other waste recovery and waste minimization activities.  In FY 2005, EPA
will promote efforts to  increase state  support  for CARE's mission, provide  technical and
financial  assistance  for market  development, and   develop   and  promote  procurement
specifications for recycled content carpet.
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       An increasing number of EPA partners are saving money and reducing waste by using
resource management (RM) contracting. This contracting system, pioneered by General Motors
Corp., increases resource efficiency by aligning waste contractor incentives with the goals of
waste reduction. For example, an RM contract might cap disposal costs based on current costs
and then include a gain-sharing arrangement for waste  reduction projects  initiated by the
contractor.   EPA has  developed the Resource Management Contracting Manual  and will
promote its use through the Waste Wise network, provide technical assistance to organizations
interested in using this type of contracting approach,  and document resource efficiency gains
made by organizations using RM.  In addition, EPA is tracking activities being undertaken by
developing countries to  further increase reuse, recycling, and energy recovery from materials
typically considered wastes. The Agency will continue this effort in FY 2005.

       In the area of new technologies, EPA is promoting flexible innovative ways to convert
waste  to energy.   The Agency considers  gasification to be  desirable technology for  this
conversion and will work in FY 2005  to promote a positive regulatory program that encourages
the use of waste materials as a feedstock to gasifiers.  To do this, the Agency will assess those
components of the regulatory structure in all media that can affect the use of waste in gasification
and consider any changes to the regulations that could  promote the efficient and safe use of
wastes as gasification feedstock.

       In FY  2005, EPA  will also  revisit the impact of revising the RCRA hazardous  waste
program to allow a conditional exclusion from the definition of solid waste for hazardous oil-
bearing secondary materials, generated by the petroleum refinery industry, when these materials
are processed in a gasification system that produces synthesis  fuel and other non-fuel chemical
by-products.  The response to the initial proposal to do this suggested EPA broaden its scope of
activity past the hazardous waste program into the use of other waste streams, such as municipal
and agricultural waste, as possible feedstock to gasifiers.  The Agency will look into developing
a "how to" manual for municipalities who might need technical and programmatic support to use
gasification  as a technology to solve solid waste disposal problems and generate a source of
power.

       EPA will work with several Federal agencies including the Department of Energy (DOE)
and the Department of Agriculture (USDA) as well as industry, states, and municipalities to
facilitate using gasification technology,  encouraging recycling through new technology by
removing regulatory barriers to safe hazardous waste and materials recycling.

       EPA will also investigate regulatory innovations, including appropriate rules, guidance,
and other outreach materials, to increase the safe recycling of hazardous wastes and enhance the
recovery of hazardous  materials. The Agency will  emphasize  efforts  that minimize  use of
hazardous constituents and maximize recovery of hazardous materials. EPA plans to complete a
regulation that revises the Definition of Solid Waste to be consistent with the guidance provided
by the D.C. Circuit Court of Appeals in Association of Battery Recyclers v. EPA.  The Agency
will also continue to further define "discard" of materials destined for reuse and recycling.
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       In FY 2005, EPA will address new issues raised in regard to the Definition of Solid
Waste. Some concerns that are  voiced  by environmentalists  involve limiting recycling with
respect to a "continuous process within the same industry" to on-site recycling, and not allowing
recycling to occur off-site without the material being regulated as a hazardous waste.  Industry
groups raise different issues and challenge EPA's definition of the  term "continuous process
within the same industry."  Depending on the number of issues, their complexity, and the need
for additional study, the Agency anticipates making significant progress developing regulations.
In addition, EPA will continue to collaborate with Regions and  states to clarify or revise existing
policy guidance to address these new issues.  The Agency will also  track developments hi the
Organization for Economic Cooperation and Development and other developing countries aimed
at increasing the reuse or recovery of hazardous residuals.

       At the same time, EPA will focus on specific industry sectors, such as metal finishing.
EPA plans to establish regulations tailored to the risk posed by metal finishing waste when
recycled. Compliance with these regulations is expected to be less costly than for the existing
hazardous waste regulations. EPA will also  work with academic laboratories to tailor RCRA
regulations to achieve maximum efficiency while continuing the high level of human health and
environmental protection. This effort  is designed to reduce the use of  constituents and chemicals
of concern and educate high school and university students on safe handling methods. The goal
is to promote environmental stewardship within academia so that, once students graduate, they
can integrate environmental values into their workplace and lives.

       Lastly, the RCC  explores ways to  obtain  energy or products from waste through
alternative  energy  sources.   EPA   currently allows  certain industrial byproducts  that are
comparable to fossil fuels to be used for  energy production, which saves energy by reducing the
amount of hazardous waste that would otherwise be treated and disposed, promotes energy
production  from a domestic, renewable source, and reduces use of fossil fuels. Further, EPA is
examining the effectiveness of the current comparable fuel program and considering whether
other byproducts could be safely used as fuel as well.

       Providing  education, outreach,  training  and technical  assistance: By  spreading the
conservation and recycling message  to consumers, youth, senior citizens, and under-served
communities, EPA encourages the personal commitment of Americans to reduce their waste
generation and increase their recycling efforts.  In FY 2005, EPA will build on the success  of
existing  outreach products  and educational tools to promote waste reduction, recycling, and
neighborhood revitalization hi Hispanic and  African-American communities  and on Native
American lands.  Two major media campaigns have been launched to encourage urban African
Americans  to reduce and recycle waste.  These public service announcements aired on 50 radio
stations hi major African-American media markets nationwide.

       EPA also  launched  a campaign to encourage Hispanic-Americans to recycle used oil,
with such major  oil recyclers as the Automotive Oil Change  Association (AOCA) and the
National Oil Recycling  Association  (NORA). EPA will expand its outreach to the Hispanic
community in FY 2005  through  a campaign aimed  at identifying household hazardous wastes

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and providing information on proper waste management and disposal.  Materials will be written
and printed in Spanish as well as in English, in a format and language appropriate to the Hispanic
culture.

       In October 2003,  the Agency launched its "Make a Difference" campaign at a Youth
Environmental Symposium, co-sponsored with the City of San Diego Environmental Services
Division.  Over 400 junior  and high school students attended  a morning of workshops and
presentations to  help  them make environmentally-conscious decisions about their day-to-day
activities.

       In FY 2005, EPA will continue its youth campaign by developing outreach materials on
green purchasing,  recycling  used motor oil, and life cycle posters that target products used
everyday, such as cell phones.  These materials are intended to encourage students and teachers
to make a  difference  in  the environment and to start innovative recycling programs in their
schools and communities.

       Also in FY 2005, the Agency will initiate a campaign on the environmental issues and
needs surrounding the  elderly. Outreach materials and activities will focus on such topics as
green purchasing, moving (downsizing homes, lifestyles), home offices, e-cycling and
travel/leisure.

       RCRA Waste Management

       The Agency's RCRA program accounts for over 6,500 of the facilities addressed by this
objective. The RCRA program, working in partnership with states, industry, and Tribes, reduces
the risk of human exposures to hazardous, industrial non-hazardous, and municipal solid wastes.

       Recognizing that some  hazardous  wastes cannot be completely eliminated or recycled,
the RCRA  program works to reduce exposure to hazardous wastes by maintaining a cradle-to-
grave approach to waste management.  The program's primary focus is to prevent hazardous
releases from RCRA facilities and reduce emissions from hazardous waste combustion.  In FY
2005, this will be accomplished by providing greater regulatory flexibility where appropriate and
promoting opportunities for converting waste to energy.

       A combination of regulations, permits, voluntary standards, and programs help to ensure
safer management of these  various wastes.  If these wastes  are not properly managed, new
contaminated waste sites that threaten nearby communities could result.  This approach regulates
the generation,  handling, transport,  treatment, storage, and disposal of hazardous waste.  The
main vehicle for hazardous waste program implementation is the issuance of RCRA hazardous
waste permits, which mandate appropriate controls for each site.  To date, 48 states, Guam, and
the District of Columbia are authorized to issue permits.

       Strong state partnerships and the authorization of states for all portions of the RCRA
hazardous waste program, including regulations that address waste management issues contained

                                         111-23

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in permits, are important goals.  State program authorization provides the states with primary
RCRA implementation and enforcement authority; reduces overlapping and dual implementation
by the states and EPA; provides the regulated community with one set of regulations; reduces
overall Federal enforcement presence hi the states; and can provide the opportunity for some of
the newer, less-stringent RCRA regulations to be implemented by the states. In FY 2005, by
using Express Authorization, states will save the tune and paper work currently required to
receive authorization.  The RCRA program will continue its strong partnerships with states to
eliminate the greatest impediments to state program authorization.

       In a rulemaking designed to simplify the permitting process for lower-risk treatment and
storage facilities, 17 the  Agency proposed standardized permit  procedures. EPA anticipates
promulgating the final rule hi 2004.  In 2005, the RCRA program plans to give guidance and
training necessary for the Agency and states to implement this rule. In addition, in FY 2005 the
program  will continue to work hi  partnership with the states to  incorporate e-permitting
approaches into the RCRA permitting program.   Dissemination of the e-perrnitting  tools
developed hi prior years and development of additional components will encourage and facilitate
states to  expedite  and simplify the  permitting process  and provide  better  public  access to
permitting information.

       To tap   into  the  power of voluntary programs  to  achieve  broad,  yet practical
environmental progress, the Agency will promote and facilitate the adoption of Environmental
Management Systems  (EMS) at RCRA facilities. EPA intends to partner with the states on pilot
implementations and work through the permit modification and renewal processes.  The goal is
to make permits more "EMS-friendly."

       In FY 2005, EPA will promulgate the  final dyes and pigments listing determination
completing all of the court  ordered  listing determinations.  The promulgation of this listing
determination will culminate more than a decade  long effort.  The  Agency will also assess
additional hazardous waste identification work, identify priorities, and initiate necessary changes
through non-regulatory or regulatory approaches to ensure protection of human health and the
environment.

       To better calibrate risk and regulatory standards, in 2005, the Agency will consider the
need to develop  additional targeted exemptions from the hazardous waste mixture and derived-
from rules.  The Agency will  identify priorities for additional targeted exemptions as well as
review changes to existing exemptions hi relation to other programmatic changes.

       In FY 2005, the Agency  will  finalize a rule establishing a consistent national approach
for managing used industrial wipes, shop towels and rags containing hazardous solvents. As part
of this effort, EPA will initiate development of implementation guidance to assist the thousands
of small businesses, which routinely use these particular materials.
17 Federal Register Notice of Proposed Rulemaking: 66 FR 52191

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       In FY 2005, the Agency will also experiment with projects that test alternative regulatory
requirements.  For example, EPA will review and identify alternative approaches to the current
waste generator regulations, identifying opportunities to streamline the regulations and reduce
the burden on generators. To encourage energy conservation, EPA will continue to partner with
the automotive and fuel industries to address any RCRA barriers to emerging technologies, such
as fuel cells.

       Another area where the  Agency will seek to improve waste management practices
involves the hazardous waste manifest system, used for tracking cradle to grave waste
transportation of waste from a generator to a treatment, storage, or disposal facility. A rule
proposed in May 2001 for major manifest system changes is intended to greatly reduce the
paperwork burdens on waste handlers and authorized states, while improving the effectiveness of
tracking waste shipments.18 In  FY 2004, the Agency expects to finalize the manifest form
changes supported by both industry and states. In FY 2005, EPA will develop standards and
systems for preparing, signing,  and transmitting manifests electronically.

       In FY 2005, EPA will focus on ways to eliminate mercury releases, reduce mercury use
in products and processes, and ensure safe storage and disposal of mercury. In early 2004 EPA
will begin to  negotiate an agreement with Electric Arc Furnace mini-mills that they only accept
automobile scrap that is free of mercury switches. In addition to this voluntary effort, the Agency
is accelerating its  MACT rulemaking that would cover these mini-mills. Also, EPA plans to
work with the American Dental Association to foster proper management of dental amalgam;
consider partnerships with industry to promote the use of mercury-free alternatives; address the
beneficial reuse of  mercury from coal combustion units;  and expand an existing regional
program to reduce mercury air  emissions from operating gold mines.

       Treatment and disposal of hazardous  waste is the primary area for many changes the
Agency is making to the RCRA program.  Combustion is one typical method of treatment of
hazardous waste.  MACT standards for hazardous waste burning incinerators, cement kilns,  and
light-weight aggregate kilns were vacated by the U.S. Court of Appeals for the District of
Columbia Circuit.  19 The Agency must respond to the court's decision with revised standards to
those proposed in FY 2004 and promulgated in FY  2005 pursuant to  a settlement agreement
among the parties to that litigation.  Technical assistance will be critical during the next  few
years  to appropriately  control these major  sources of hazardous air pollutants as interim
standards become effective.  The interim standards became effective in September 2003.  Under
a second settlement agreement, the Agency must also develop MACT standards for hazardous
waste  burning  boilers and hydrochloric acid production furnaces in order  to meet statutory
obligations under the Clean Air Act (CAA).
18 Federal Register Notice of Proposed Rulemaking: 66 FR 28239
19 This rule, published in 64 FR 52828, September 30, 1999 was challenged in Cement Kiln Recycling Coalition v.
EPA, 255 F. 3d 855 (D.C. Cir.2001)

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       In 2003, the Agency began working with the Association of State and Territorial Solid
Waste Management Officials  to  improve  the financial assurance regulations for the RCRA
program.  The financial assurance regulations reduce the number of sites that must be cleaned up
under either state or Federal authorities (such as Superfund removals), by requiring facilities to
have financial assurance for third party liability, closure, and completion of corrective action.  In
FY 2005  the Agency and states will be determining which areas of the program need further
attention and how to improve the program.

       The Agency will continue to implement its strategy for revising its municipal solid waste
landfill criteria in  FY  2005.  Revisions will provide additional  flexibility for states and the
regulated community.  Revisions will also provide for bioreactor  technology as a future energy
source. Studies have indicated that bioreactor landfill technology results in a significant increase
in landfill gas emissions over a short period of time. 20 These landfill gases consist primarily of
methane and carbon dioxide.  Landfill gas  may represent an opportunity for gas collection and
beneficial reuse for projects such as energy recovery.   Currently, the use of landfill gas for
energy applications is  about  10% of its potential.  Application of the  controlled bioreactor
technology to 50% of the waste currently being landfilled could provide over 270 billion cubic
feet of methane yearly, sufficient to supply 1% of the U.S. electrical needs based on DOE
estimates.

       The use of biomass as  a renewable  resource for bio-based products and bio-energy can
result in additional farm income, as well as less reliance on foreign energy sources, such as oil.
Currently, bio-based products and the bio-energy industry remain small and fragmented.  In FY
2005,  EPA will continue to work with USD A,  DOE,  and states to coordinate and promote a
unified national bio-energy strategy.

       The Agency will  also work to reduce risks from industrial non-hazardous waste, also
known as Industrial D waste. Manufacturing facilities generate and dispose of 7.6 billion tons of
industrial non-hazardous waste each year. 21 In FY 2005, EPA will assist facility managers, state
and Tribal regulators, and the interested public  use the voluntary "Guide for Industrial Waste
Management," developed by EPA and its partners in FY 2003, and will modify the Guide as
needed to improve its usefulness to all environmental partners.

       Waste management in  Indian Country is one of the highest environmental and public
health priorities for Federally-recognized Indian tribes. Under RCRA, the responsibility for solid
20 U.S. Environmental Protection Agency, Office of Solid Waste Web Site: http://www.epa.gov/epaoswei-/non-
hw/mimcpl'landfill/bioreactors.htm. Specific studies can be found at
http://epa.gov/ord/NRMRL/Pnbs/625ROiOi2/625R01012.pdf.: htlp-.//www.epa.gov/proiectxl/Voio/index.htm.:
http:/V\vu^v\epa.gov/epaoswer/'non-hw/muncpl/landfill.'bio-vvorlo/index\.htm.

21 Data for 1982 from "Screening Survey of Subtitle D Establishments. Draft final report. U.S. Environmental
Protection Agency, Office of Solid Waste, December 1987. "Nonhazardous Waste: Environmental Safeguards for
Industrial Facilities Need to Be Developed." Report to the Chairman, Subcommittee on .Transportation and
Hazardous Materials, Committee on Energy and Commerce, House of Representatives. April 1990

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and hazardous waste program management in Indian country rests with EPA. Even though EPA
has been implementing programs in Indian country  for many years,  major gaps still exist.
Improper solid and hazardous waste management practices are widespread, posing significant
environmental and public health threats.  For example:

       *  Over 44% of the 572 recognized Tribes have no waste management program at all.
       •  24% of Tribes state that open  dumps  are then-  primary method of solid waste
             disposal.
       •  16% indicate that burn barrels are their primary method of disposal.
       •  35% state that recycling is their last or next to last management option.
       •  Over 100 high threat open dumps exist on Tribal lands.

       In concurrence  with statutory and  trust  responsibilities,  in FY 2005  EPA will focus
resources on waste program development and implementation in Indian country. Environmental
results will be achieved primarily by building  sustainable Tribal solid and hazardous waste
management  programs.   These  programs will  include items  such as  integrated waste
management plans/development of Tribal capacity to implement them; increase recycling/reuse
programs; new mechanisms to combat illegal dumping; and increased attention to EPA's direct
implementation responsibilities. Initial performance measures will focus on the number of tribes
with waste management programs.

       EPA will continue its leadership of the Tribal Solid Waste Interagency Workgroup.  EPA
will strengthen its partnerships and continue to work closely with agencies such as the Bureau of
Indian Affairs, the Indian Health Service, and USDA's Rural Utilities Service to build programs,
improve waste management, and  work towards the most efficient and effective solutions  to
provide the greatest positive impact on human health and the environment.  Open dumps are of
particular concern for Tribes.  A 1998 report to Congress by the Indian Health Service identified
142 high-threat open dumps on Tribal lands. 22 Since 1999, the Interagency Workgroup has
provided over $6.0 million to thirty-one Tribes to clean up open dumps and $3.1 million to 47
Tribes to  develop hazardous waste management programs.   EPA will also strengthen its
partnerships with Tribal governments and form partnerships with others to deal more effectively
with waste management issues. In addition, EPA will develop specific educational programs and
outreach tools on solid and hazardous  waste issues, such as the recently completed Tribal
Decision Makers' Guide.

       Categorical Grant: Hazardous Waste Financial Assistance

       The RCRA statute authorizes EPA to assist state governments in the development and
implementation of an  authorized  hazardous waste management  program for the purpose  of
controlling the generation, transportation, treatment, storage and disposal of hazardous wastes.
These grants to states strengthen their ability to implement all aspects  of the hazardous waste
22 Indian Health Service Web Site: http://www.ihs.gov/NonMedical
Programs/DFEE/Solid_W/l 998_ODReport/l 998OpenDumpsReport.pdf.
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program (hazardous  waste recycling and waste  minimization,  permitting,  authorization,
combustion, enforcement and tribal assistance).   The states propose legislation and upgrade
regulations to achieve equivalence with the federal hazardous waste management program, and
apply to EPA for authorization to administer the program. This program provides Performance
Partnership Grants to states.

       This account also provides funding for the direct implementation of the RCRA program
by Region 7 and 10 for the States of Iowa and Alaska, respectively, which are not authorized to
administer the program.

       In FY 2005, the following activities will be accomplished using categorical grants:

          •  Issue post-closure permits or use appropriate enforcement mechanisms to address
             environmental risk at inactive land disposal facilities and put "approved controls"
             in place.
          •  Approve closures plans for interim status treatment and storage facilities that are
             not seeking permits to operate.
          •  Review and decide on  permit renewals and modifications for hazardous waste
             management facilities.
          •  Provide input to the RCRA Info National Reporting System to support higher
             quality, more useable, and more accessible information.
          •  Operate comprehensive compliance monitoring and enforcement actions related
             to the RCRA hazardous waste program.
          •  Provide funding for the Direct Implementation of the RCRA program by Region 7
             for the State of Iowa and Region 10 for the State of Alaska.

       LUST/UST (USTportion only)

       In managing petroleum products properly, the Agency will work with states, Tribes and
Intertribal Consortia to prevent, detect, and correct leaks into the environment from federally-
regulated underground storage tanks containing petroleum and hazardous substances. Achieving
significant improvements in release prevention and detection will require a sustained emphasis
by both EPA and its partners. Concerns about the use of fuel oxygenates (e.g., methyl-tertiary-
butyl-ether,  or  MTBE)  in  gasoline further underscores EPA's  and the states'  emphasis on
promoting compliance with all UST requirements.

       To this  end, by FY 2008, EPA intends to increase the percentage of UST facilities in
significant operational compliance with both release detection and prevention requirements by 4
percent compared to 2004, out of a total estimated universe of approximately 258,000 facilities.
(The  baseline  compliance rate will  be  determined  in FY 2004,  but is  estimated  to be
approximately 60%.) EPA previously reported progress in meeting each of these requirements,
but combined them per the recommendations of an EPA/state workgroup to improve consistency
in reporting the national data.  Most states are applying more stringent criteria to determine the
progress in attaining operational  compliance with  the  two requirements.  In FY 2003,  the

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universe of UST facilities was approximately 258,000.  Additionally, each year through FY
2008, EPA and its partners will seek to limit the number of confirmed releases at UST facilities
to no more than 10,000. Between FY 1999 and FY 2003, confirmed releases averaged 13,600.

       EPA recognizes that the  size and  diversity  of the  regulated community  puts  state
authorities in the best position to regulate USTs and to set priorities.  RCRA Subtitle I allows
state UST programs approved by EPA to operate in  lieu of the Federal program.  While the
frequency and severity of releases from UST systems have been greatly reduced, EPA and its
state partners note that releases are  still occurring.  EPA continues to work with its state and
Tribal partners to prevent and detect  petroleum releases from USTs by ensuring that compliance
with both release detection and prevention requirements (spill, overfill, and corrosion protection)
is a national  priority.   While most  of the  approximately 683,000 active underground storage
tanks  (located at UST facilities) have the required equipment, significant work remains to ensure
that UST owners and operators maintain and operate their systems properly.  Therefore, in FY
2005, the Agency will continue to work  with states and industry to  improve UST  system
performance based on the results of the UST system evaluation  work.  The Agency will also
continue to monitor UST system performance and  evaluate certain aspects of performance in
more detail.

       To protect groundwater and drinking water from petroleum releases, EPA will continue
to support core development and implementation of state and tribal UST programs;  strengthen
partnerships among stakeholders; and provide technical assistance, compliance assistance, and
training to promote and enforce UST facilities' compliance. For example, as part of a  national
UST training effort, initiated in FY  2003 by an EPA/state and industry workgroup, EPA will
continue to provide web-based training modules that address topics such as cathodic protection,
leak detection, spill containment, and overfill protection components of the UST system.  The
training modules will provide  UST  inspectors with core and advanced  knowledge on how to
inspect an UST system. In addition, EPA will continue its work to obtain states' commitments to
increase their inspection and enforcement presence if state-specific goals  are not met.   The
Agency and states will continue to use innovative compliance approaches, along  with outreach
and education tools, to bring more tanks into compliance.  For example, programs that allow tank
owners  to self-certify by conducting rigorous self-audits through  EPA's environmental results
program, third-party inspections, and multi-site agreements can be effective in bringing a single
tank owner with multiple sites into compliance.

       The Agency will also provide guidance to foster the use of new technology to  enhance
compliance.  For example,  the presence of MTBE in  gasoline  increases  the  importance of
preventing and rapidly detecting releases, since MTBE cleanups can cost 100 percent more than
cleanups involving other gasoline contaminants.  The Agency will focus its  efforts on reducing
UST releases and increasing  early detection of petroleum products, including MTBE, by further
evaluating the performance of compliant UST systems.
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       Categorical Grant: Underground Storage Tanks

       This program provides RCRA 2007(f) (2) grants to states and Public Law 105-276 grants
to tribes to build core state and tribal UST programs.  The objective of this grant funding is to
assist state governments and Indian nations in the development and implementation  of UST
programs. EPA recognizes that the size and diversity of the  regulated community puts state
authorities in the best position to regulate USTs and to set priorities.  RCRA Subtitle I allows
state UST programs approved by EPA to operate in lieu of the Federal program.  Except in
Indian country, even states that have not received formal state program approval from EPA are in
most cases the primary implementing agencies and receive annual grants from EPA.

       For example, UST categorical grant funding is used to assist states and tribes to conduct
inspections of underground  storage tanks;  in encouraging owners and operators to properly
operate and maintain their USTs; ensure owners and operators routinely and correctly monitor all
regulated tanks and  piping in accordance with the regulations; and develop state programs with
sufficient authority and enforcement capabilities to operate in lieu of the federal program.

       EPA has the primary responsibility for implementation of the UST program in Indian
Country. Grants under Public Law 105-276 will  continue to help Tribes develop the capacity to
administer UST programs. For example,  funding is used to  support training for tribal staff,
educate owners and operators in  Indian Country  about the UST requirements;  and maintain
information on USTs located in Indian Country.

       This grant funding  may be used in Performance Partnership Agreements with states and
tribes. A state or tribe  could elect to consolidate this and other categorical media grants into one
or more multi-media or single media grant. The state or Tribe could then target its most pressing
environmental problems and use the performance  partnership  grant for  a number of activities
including pollution  control,  abatement and enforcement. This program will not compromise
basic national objectives and legislative requirements.

       In FY 2005,  EPA is requesting an additional $26 million in STAG funding over the FY
2004 President's budget  request.  The additional funds will allow EPA to fund additional state
inspections of underground storage tanks.
FY 2005 CHANGE FROM FY 2004

EPM

    %   (+1,470,500) Internal decisions to centralize LAN funding and provide support to the
       Land  Revitalization  initiative  have resulted  in an  increase  to  the  RCRA:  Waste
       Minimization and Recycling program.
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STAG
    (+ $26,000,000) In FY 2005, EPA is requesting an additional $26 million in STAG funding
    over the FY 2004 President's budget request.  The additional funds will  allow EPA to fund
    additional state inspections of underground storage tanks.
ANNUAL PERFORMANCE GOALS AND MEASURES

GOAL: LAND PRESERVATION AND RESTORATION

OBJECTIVE: PRESERVE LAND

Municipal Solid Waste Source Reduction

In 2005     Divert an additional 1% (for a cumulative total of 35% or 81 million tons) of municipal solid waste
           from land filling and combustion, and maintain per capita generation of RCRA municipal solid waste
           at 4.5 pounds per day.

In 2004     Divert an additional 1% (for a cumulative total of 34% or 79 million tons) of municipal solid waste
           from land filling and combustion, and maintain per Capita generation of RCRA municipal solid waste
           at 4.5 pounds per day.

In 2003     End of year FY 2003 data will be available in December 2005 to verify that an additional 1% (for a
           cumulative total of 32% or 74 million tons) of municipal solid waste from land filling and combustion,
           and maintain per capita generation of RCRA municipal solid waste at 4.5 pounds per day was diverted.
Performance Measures:
Millions
diverted.
of tons of  municipal  solid waste
Daily per capita generation of municipal solid
waste.
FY2003
Actuals
Data available in
December 2005
Data available in
December 2005
FY2004
Pres. Bud.
79

4.5

 FY2005
Pres. Bud.
    81       million tons
                                                                   4.5
            Ibs. MSW
Baseline:   An analysis conducted in FY 2001 shows approximately 68 million tons (29.2%) of municipal solid
           waste diverted and 4.4 Ibs of MSW per person daily generation. While data indicate that the growth in
           recycling rates has slowed, the target of a 35% recycling rate is being maintained.

Waste and Petroleum Management Controls

In 2005     Reduce releases to the environment by managing hazardous wastes and petroleum products properly.

In 2004     Reduce releases to the environment by managing hazardous wastes and petroleum products properly.

In 2003     For UST facilities, 72% are in operational compliance with leak detection, and 79% are in operational
           compliance with  spill prevention requirements.  An additional  4.1% of the RCRA facilities have
           permits or approved controls.
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Performance Measures:

Percent  increase  of RCRA hazardous  waste
management facilities with  permits or other
approved controls.
Number of confirmed UST releases nationally.

Increase  in  UST  facilities  in  significant
operational  compliance  with  leak  detection
requirements.

Increase  in  UST  facilities  in  significant
operational  compliance with spill, overfill and
corrosion protection regulations.

Percent increase of UST facilities in significant
operational compliance with both detection and
release prevention  (spill overflow,  corrosion
protection) requirements.
FY2003    FY2004     FY2005
Actuals    Pres. Bud.   Pres. Bud.
 4.1%       2.4%         2.8%     percentage
                                   pts.


           <10,000     <10,000   UST
                                   releases
  -8%         4%          Not     percentage
                        applicable   pts.


  -6%         4%          Not     percentage
                        applicable   pts.
                           1%
percent
Baseline:   EPA did not increase by 3% to 80% for the leak detection requirements or with spill, overfill and
           corrosion protection requirements by 3% to 85% in FY 2003.  The FY 2003 actuals were 72% for UST
           facilities in significant operational compliance with  leak  detection requirements;  79%  for UST
           facilities in significant operational compliance with spill, overfill and corrosion protection. Although
           the Agency has been working with  the states to improve their reporting of both measures, the
           compliance rates for both have been steady or declining. There is some variability in reporting by
           states because some states have more stringent requirements, while other states have targeted non-
           compliant UST facilities so the facilities that are inspected are not representative of all facilities in the
           state.  A baseline for the new combined measure will be determined in FY 2004, and is currently
           estimated to  be  approximately 60%.  Between FY  1999 and FY 2003, confirmed UST releases
           averaged 13,600.  By the end of FY 2003, 83.1% of approximately 2,750 RCRA facilities had permits
           or other approved controls in place.


VERIFICATION AND VALIDATION OF PERFORMANCE

FY 2005 Performance Measure:

•       Daily per capita generation
•       Millions of tons municipal solid waste diverted

Performance Database:  Data are provided by the Department of Commerce.  EPA does not
maintain a database for this information.
Data Source:  The baseline numbers for municipal solid waste source reduction and recycling
are developed using a materials flow methodology employing data largely from the Department
of Commerce and described hi the EPA report titled "Characterization of Municipal Solid Waste
hi the  United  States."   The  Department  of Commerce collects solid waste  generation and
recycling rate data from various industries.
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Methods, Assumptions and Suitability: Data on domestic production of materials and products
are compiled using published data series.  U.S. Department of Commerce sources are used,
where available; but in several instances more detailed information on production of goods by
end-use is available from trade associations.  The goal is to obtain a consistent historical data
series for each product and/or material. Data on average product lifetimes are used to adjust the
data series.   These estimates and calculations result in material-by-material and product-by-
product estimates of MSW generation, recovery, and discards.

There  are  various  assumptions  factored into  the  analysis to develop estimates  of MSW
generation, recovery and discards. Example assumptions (from pages 141-142 of year 2000
"Characterization Report" include:  Textiles used as rags are assumed to enter the waste stream
the same year  the textiles are discarded.  Some products (e.g., newspapers and packaging)
normally have short lifetime; products are assumed to be discarded in the year they are produced.

QA/QC Procedures:  Quality assurance and quality control are provided by the Department of
Commerce's  internal  procedures  and   systems.   The  report  prepared by  the Agency,
"Characterization of Municipal Solid Waste hi the United States," is then reviewed by a  number
of experts for accuracy and soundness.

Data Quality Review: The report, including the baseline numbers and annual rates of recycling
and per capita municipal solid waste generation, is widely accepted among experts.

Data Limitations:  Data limitations stem from the  fact that the baseline statistics and annual
rates of recycling  and per capita municipal solid waste generation are based on a series of
models,  assumptions, and  extrapolations  and,  as such, are not an empirical accounting of
municipal solid waste generated or recycled.

Error Estimate: N/A. Currently, the Office of Solid Waste (OSW) does not collect  data on
estimated error rates.

New/Improved Data or Systems:  Because the statistics on MSW generation and recycling are
widely reported and accepted by experts, no new efforts to improve the data or the methodology
have been identified or are necessary.   EPA plans to develop regulations for improving reporting
of source reduction activities by TRI reporting facilities.

References:  Municipal Solid Waste in the United States:  1999 Facts and Figures, EPA,  July
2001 (EPA 530-R-01-014), http://www.epa.gov/osw/uidex.htm

FY 2005 Performance Measure

•      Percent of  RCRA hazardous waste management facilities with permits or other
       approved controls in place.
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Performance Database: The Resource Conservation Recovery Act Information System
(RCRAInfo) is the national database which supports EPA's RCRA program.

Data Source:  Data are entered by the States.  Supporting documentation and reference materials
are maintained in regional and state files. EPA's Regional offices and authorized states enter
data on a rolling basis.

Methods,  Assumptions  and  Suitability:    The  Resource  Conservation  Recovery  Act
Information System (RCRAInfo) is the national database which supports EPA's RCRA program.
RCRAInfo contains information on entities (genetically referred to  as "handlers") engaged in
hazardous waste (HW) generation and management activities regulated under the portion of
RCRA that provides  for  regulation  of hazardous waste.   RCRAInfo  has several  different
modules, including status of RCRA facilities in the RCRA permitting universe.

QA/QC Procedures:  States and EPA's Regional offices generate  the data and manage data
quality related to timeliness and accuracy.  Within RCRAInfo, the application software enforces
structural controls  that ensure that high-priority national components of the data are properly
entered.     RCRAInfo  documentation,  which  is   available   to   all   users  on-line  (at
http://www..epa,gQy/rcrainfQ/) provides guidance to facilitate the generation and interpretation of
data. Training on use of RCRAInfo is provided on a regular basis, usually annually, depending
on the nature of system changes and user needs. The data that support the performance for the
GPRA goals is of far better quality than  the handler data  in general (including generators).
Determination of whether or not the  GPRA annual goals are met  is based on the legal and
operating status codes for each unit (e.g., a facility can have more than one unit). In 1999 and
2000 there  was a focused  effort  to update this  information for the  baseline  facilities in
RCRAInfo.  RCRAInfo is the sole repository for this information and is a focal point hi planning
from the local to national level.

Note: Access to RCRAInfo is open only to EPA Headquarters, Regional, and authorized State
personnel. It is not available to the general public because the system contains enforcement
sensitive data.  The general public is referred to EPA's Envirofacts  Data Warehouse to obtain
filtered information on RCRA-regulated hazardous waste sites.

Data Quality Review: The Government Accounting Office's (GAO's) 1995 Report on EPA's
Hazardous Waste Information System http://frebgate access gpo gov/cgibin/   (This historical
document is available on the Government Printing Office Website)  reviewed whether national
RCRA information systems support EPA and states in managing their hazardous waste program.
Recommendations coincide  with ongoing internal  efforts  (WIN/Informed) to improve  the
definitions of data collected, ensure that data collected provide critical information and rninimize
the burden on states.

Data Limitations: No data limitations have been identified. The states have ownership of their
data and EPA has to rely on them to make changes.  The data that determine if a facility has met
its permit requirements are  prioritized in update efforts.  Basic site identification data may

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become out-of-date because RCRA does not mandate annual or other periodic notification by the
regulated entity when site name, ownership and contact information changes. Nevertheless, EPA
tracks the facilities by their IDs and those should not change even during ownership changes.

Error Estimate: N/A.  Currently OSW does not collect data on estimated error rates.

New/Improved Data or Systems:  EPA has successfully implemented new tools for managing
environmental information to support federal and state programs, replacing the old data systems
(the  Resource Conservation and Recovery Information System  and the Biennial Reporting
System) with  RCRAInfo.  RCRAInfo allows for tracking of information  on the regulated
universe of RCRA hazardous waste handlers, such as facility status, regulated activities, and
compliance history.  The system also captures detailed data on the generation of hazardous waste
by large quantity generators and on waste management practices  from treatment, storage, and
disposal facilities.  RCRAInfo is web accessible, providing a convenient user interface for
Federal, state and local  managers, encouraging development of in-house expertise for controlled
cost, and using commercial off-the-shelf software to develop reports from database tables.

References: http://www.epa.gov/osw/index.htm

FY2005 Performance Measure:

«  Percentage of UST facilities that are in significant operational compliance with both
   release detection and release prevention (spill, overfill, and corrosion protection)
   requirements.
•  Number of confirmed releases at UST facilities nationally

Performance Database: The Office of Underground Storage Tanks (OUST) does not maintain a
national database; the states maintain their respective databases and/or spreadsheets.

FY 2004 will be the first year of establishing the baseline for the new combined measure, the
percentage of UST facilities that are in significant operational compliance with both release
detection and release prevention (spill, overfill, and corrosion protection), which will be reported
hi the FY2005 Annual Report.  EPA has previously reported progress hi meeting each of these
requirements separately. The new combined measure cannot be recalculated using the previous
separate measures because there hasn't been a baseline prior to FY 2004. As there is no database
for this information, a requirement to recalculate the baseline would be overly burdensome to the
states.

Data Source:  Designated state agencies submit semi-annual progress reports to the EPA's
Regional offices.

Methods, Assumptions and Suitability: N/A
                                         m-35

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QA/QC Procedures:   States submit their performance on an EPA-supplied form for review
against national trends and historical data.  Previously reported percentages and/or totals are
compared to current values and states are notified of any discrepancies and/or anomalies.

Data Quality Review:  EPA resolves any discrepancies and/or anomalies in the reported
information through written explanations and/or justifications from the states and discussions.

Data Limitations: Percentages reported are sometimes based on estimates and extrapolations
from sample data. The quality of the states' data depends on the completeness and accuracy of
states' internal recordkeeping.

Error Estimate: Not calculated.

New/Improved Data or Systems: None.

References: FY 2003  Mid-Year Activity Report, June 19, 2003 (updated semi-annually)


EFFICIENCY MEASURES\MEASUREMENT DEVELOPMENT PLANS;

       EPA continues  to emphasize a strong multi-year focus on performance measure
development.  Measurement Development Plans (MDPs) describe efforts to fill identified
measurement gaps so that progress toward developing fully-functioning measures, whether long-
term or short-term, can be tracked. MDPs are useful tools that can be used to measure long-term
strategic outcomes to be highlighted in the next strategic plan, to track current strategic targets
that cannot be measured annually, or to highlight progress in addressing measurement gaps.

       In this objective, the Agency is committing, hi the 2003 Strategic Plan, to two strategic
targets for which there are not yet annual performance measures for 2005. These 2008 targets
are to update controls for preventing releases at 150 facilities that are due for permit renewal by
the end of 2006, and to reduce  hazardous waste combustion facility emissions of dioxins and
furans  by 90 percent and particulate matter by 50 percent from 1994 levels of 880 grams/year
and 9,500 tons/year, respectively. Regarding the target for permit renewals, EPA will develop a
methodology to track renewals and perform outreach with the states to  encourage  them to enter
these data into their systems. The Agency anticipates setting  an annual performance goal for
2006.  For the hazardous waste facility emissions,  EPA plans to have the MACT revised
standards promulgated hi  2005  pursuant to a settlement agreement among the parties to that
litigation.
                                         111-36

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COORDINATION WITH OTHER AGENCIES

Resource Conservation and Recovery Act

       Pollution   prevention   activities    entail   coordination    with   other    Federal
departments/agencies, such as the General Services Administration (use of safer products for
indoor painting and cleaning), DOD (use of safer paving materials for parking lots), and Defense
Logistics Agency  (safer solvents).  The program also works with the National Institute of
Standards and Technology, the International Standards Organization,  and other groups to
develop standards for Environmental Management Systems.

       In addition to business, industry and other non-governmental  organizations, EPA will
work with Federal, state, Tribal, and local governments to encourage reduced generation as well
as the  safe recycling of wastes. Frequently, successful programs require multiple partners to
address the multi-media nature of effective  source reduction and recycling. The Agency has
brought together a range of stakeholders to examine alternatives in specific industrial sectors,
and  several  regulatory  changes have followed which encourage hazardous waste  recycling.
Partners in this effort include the Environmental Council of States, the Tribal Association on
Solid Waste and Emergency Response, and the Association of State and Territorial Solid Waste
Management Officials.

       As Federal partners, EPA and the United States Postal Service (USPS) work together on
several municipal solid waste projects. For instance, rather than dispose of returned or unwanted
mail, EPA and the  USPS developed and implemented successful recycling procedures  and
markets. For example, unwanted mail (advertisements, catalogues, etc.) is being returned to the
Post Office for recycling rather than disposal by the  recipient. In addition, Integrated Solid Waste
Management Plans are being implemented at parks in western states because of Regional offices'
assistance to the National Park Service. EPA also works with the Small Business Administration
to provide support to recycling businesses.

       The Federal government is the  single largest potential source for "green" procurement in
the country  for office products as well as products for industrial use. EPA works with other
Federal agencies and departments in advancing the purchase and use of recycled-content and
other "green" products.  In particular, the Agency is currently engaged with other organizations
within the Executive Branch to foster compliance with Executive Order 13101 and in tracking
and reporting purchases  of products made with recycled contents.

       In addition, the Agency is currently engaged with the DOD, Education and DOE, USPS,
and  other agencies  to  foster proper  management of surplus electronics equipment, with a
preference for reuse and recycling. With these agencies, and in cooperation with the electronics
industry, EPA participated in developing a  draft  interagency memorandum of understanding
(MOU) which will lead to increased  reuse and recycling of an  array of computers and other
electronics hardware used by civilian and military agencies. Implementation of this MOU will
divert  substantial quantities of plastic, glass, lead, mercury,  silver, and other materials  from

                                         111-37

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disposal.  Currently, EPA works with USDA and FDA on a variety of issues related to the
disposal of agricultural products (food and/or animals), contaminated with chemical or biological
pathogens.

       State LUST programs are critical to  achieving the objectives and long-term strategic
goals.  Except in Indian Country, EPA relies on state agencies to implement the LUST program,
including  overseeing cleanups by responsible parties and responding to emergency  LUST
releases. LUST cooperative agreements awarded by EPA are directly given to the states to assist
them in implementing their oversight and programmatic role.
STATUTORY AUTHORITIES

Department of Veterans Affairs and Housing and Urban Development and Independent Agencies
   Appropriation Act, Public Law 105-275; 112 Stat. 2461, 2499 (1998)
Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)
Resource Conservation and Recovery Act (RCRA) of 1976, as amended; (42 U.S.C. 6901-
   6992k) Public Law 94-580,42 U.S.C. 6901 et seq.
Solid Waste Disposal Act (SWDA) of 1976, as amended by the Hazardous Waste Amendments
   of 1984, (Subtitle I); Section 8001(a); Tribal Grants: PL 105-276
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                          Environmental Protection Agency

                FY 2005 Annual Performance Plan and Budget Request

                         Land Preservation and Restoration

OBJECTIVE: Restore Land

      By 2008, 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.
                                Resource Summary
                               (Dollars in Thousands)

Restore Land
Environmental Program & Management
Building and Facilities
State and Tribal Assistance Grants
Leaking Underground Storage Tanks
Oil Spill Response
Inspector General
Hazardous Substance Superfund
Total Workyears
FY2003
Actuals
$1,454,821.4
$77,013.7
$2,308.5
$33,997.8
$70,263.9
$14,701.7
$879.3
$1,255,656.6
3,772.7
FY2004
Pres. Bud.
$1,508,646.8
$78,811.3
$4,179.5
$31,913.1
$71,005.4
$15,289.4
$1,069.1
$1,306,379.0
3,822.6
FY2005
Pres. Bud.
$1,503,465.
6
$77,204.5
$2,594.2
$32,113.1
$71,000.5
$15,500.6
$1,082.2
$1,303,970.
4
3,796.7
FY 2005 Req. v.
FY 2004 Pres Bud
($5,181.3)
($1,606.8)
($1,585.3)
$200.00
($4.9)
$211.2
$13.1
($2,408.6)
-25.9
                                  Program Project
                                (Dollars in Thousands)

Congressionally Mandated Projects
Categorical Grant: Hazardous Waste
Financial Assistance
Compliance Assistance and Centers
LUST/UST
Civil Enforcement
Homeland Security: Preparedness,
Response, and Recovery
LUST Cooperative Agreements
FY 2003
Actuals
$3,509.4
$31,017.3
$198.6
$12,650.6
$1,969.7
$37,556.3
$55,798.7
FY2004
Pres. Bud.
$0.0
$31,913.1
$279.9
$10,581.0
$2,163.6
$27,339.3
$58,399.1
FY2005
Pres. Bud.
$0.0
$32,113.1
$276.6
$10,499.6
$2,135.6
$27,163.2
$58,450.0
FY 2005 Req. v.
FY 2004 Pres Bud
$0.0
$200.0
($3.3)
($81.4)
($28.0)
($176.1)
$50.9
                                       111-39

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Congressionally Mandated Projects
Oil Spill: Prevention, Preparedness and
Response
RCRA: Corrective Action
Superfund: Emergency Response and
Removal
Superfund: Enforcement
Superfund: EPA Emergency
Preparedness
Superfund: Federal Facilities
Superfund: Federal Facilities lAGs
Superfund: Remedial
Superfund: Support to Other Federal
Agencies
Administrative Projects
TOTAL
FY2003
Actuals
$3,509.4
$12,543.8
$36,816.6
$217,880.1
$158,487.3
$17,926.8
$28,838.1
$6,749.0
$656,387.4
$10,178.8
$166,319.4
$1,454,827.9
FY2004
Pres. Bud.
$0.0
$12,897.5
$40,363.8
$199,803.9
$155,307.5
$10,130.1
$32,744.2
$10,022.6
$725,751.1
$10,676.0
$180,274.1
$1,508,646.8
FY2005
Pres. Bud.
$0.0
$13,064.7
$40,975.6
$201,088.0
$155,537.2
$10,091.4
$32,182.0
$10,044.4
$719,249.8
$10,676.0
$179,918.4
$1,503,465.6
FY 2005 Req. v.
FY 2004 Pres Bud
$0.0
$167.2
$611.8
$1,284.1
$229.7
($38.7)
($562.2)
$21.8
($6,501.3)
$0.0
($355.8)
($5,181.3)
FY 2005 REQUEST

Results to be Achieved under this Objective

       EPA leads the country's activities to reduce the risks posed by releases of harmful
substances and by contaminated land.  The most effective approach to controlling these risks
incorporates  developing  and  implementing  prevention  measures,  improving  response
capabilities, and maximizing the effectiveness of response and cleanup actions. This approach
will help to ensure that human health and the environment are protected and that land is returned
to beneficial use. To meet its objective to reduce and control the risks posed by accidental or
intentional releases of harmful substances by improving our Nation's capability to prepare for
and respond more effectively to these emergencies, EPA intends to achieve the following results
in FY 2005:

•      Improve the  Agency's emergency preparedness by achieving and  maintaining  the
       capability to respond to simultaneous large-scale emergencies and by increasing response
       readiness by 10 percent from a baseline established by the end of 2003 using the core
       emergency response criteria.
•      Respond to 350 hazardous substance releases and 300 oil spills.
•      Minimize impacts of potential oil spills by inspecting or conducting exercises or drills at
       6 percent of approximately 6,000 oil storage facilities required to have Facility Response
       Plans. (Between FY 1997 and FY 2002, 30 percent of these facilities were inspected).
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       To meet  its objective to control the risks to human health and the environment at
       contaminated properties or sites through cleanup, stabilization, or other action, and to
       make land available for reuse, EPA intends to achieve the following results in FY 2005:
•      Make 500 final site-assessment decisions under Superfund;
•      Control all  identified unacceptable human exposures from site contamination to  at or
       below health-based levels for current land and/or groundwater use conditions at 10 of the
       Superfund human exposure sites and 225 of the high priority RCRA facilities;
•      Control the  migration of contaminated groundwater through engineered remedies or
       natural processes at 10 of the Superfund groundwater exposure sites and 203 high priority
       RCRA facilities;
•      Select final remedies (cleanup targets) at 20 Superfund sites;
•      By 2008,  clean up and reduce the backlog of 136,000 leaking Underground Storage Tank
       (UST) sites by 50 percent;
•      Complete construction of remedies at 40 Superfund sites; and
•      Complete 21,000 cleanups of leaking  underground  storage tanks, and 45 cleanups of
       underground storage tanks in Indian country.

       To track progress in meeting the strategic targets included hi the FY 2003 EPA Strategic
Plan, efforts are  underway as appropriate to develop new measures, collect data and establish
baselines necessary to set annual targets.

       In the Superfund Remedial program, efficiency measures will be developed that move the
program's performance management tools away from primarily addressing  historical  program
performance outputs and toward addressing the program's efficiency hi achieving its goals and
objectives.   The Superfund program's measure development efforts  seek to  identify and
implement at least  one (output or outcome) efficiency measure for the FY 2005 budget.  The
longer-term goal is to  identify and implement by FY  2006 additional efficiency measures  (both
output and outcome) that can be used by both EPA  management and the public to assess the
Superfund Remedial Program's performance.

       In addition to developing FY 2005 Corrective Action environmental indicator goals, the
RCRA program  has prepared a measurement development plan  to re-assess baselines and
strategic targets hi support of EPA efforts to cleanup and reuse contaminated land that integrates
aspects of the One Cleanup Program. Strategic targets under development include:

•      Performing  health- and environmentally- based site assessments at 100 percent of RCRA
       baseline facilities;
•      Controlling all  identified unacceptable human  exposures from site contamination to at or
       below health-based  levels for  current land  and/or  groundwater use conditions  at 95
       percent of RCRA facilities;
•      Controlling the migration of contaminated groundwater through engineered remedies or
       natural processes at 80 percent of RCRA facilities;
•      Selecting final remedies (cleanup targets) at 30 percent of RCRA facilities;
*      Completing construction of remedies at 20 percent of RCRA baseline facilities.

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       The Superfund enforcement program is critical to the Agency's ability to cleanup the vast
majority of the  nation's worst hazardous waste sites.  In FY 2005, EPA  will continue to
emphasize "enforcement first" by obtaining PRP commitments to conduct new remedial actions
as its primary strategy for completing construction at non-Federal facility Superfund sites.  EPA
has successfully encouraged or compelled PRPs to undertake or fund approximately 70% of new
remedial construction work at non-Federal facility Superfund sites  in recent years.  The
environmental benefits  cannot  be overstated  as most contaminated  waste  sites would not
otherwise be cleaned up due  to limited Federal  resources.  The  program  will  focus  on
maximizing PRP participation  in conducting  or funding response actions  while promoting
fairness in the enforcement process; recovering costs from PRPs when EPA expends funds from
the Superfund Trust Fund; and, negotiating agreements with Federal facilities for  NPL site
cleanup.

Superfund Remedial

       The Superfund Remedial program addresses contamination from uncontrolled releases at
Superfund hazardous waste  sites  that may threaten human health, the environment, and the
economic vitality of local communities.  Superfund sites with contaminated soils, sediment, and
groundwater exist nationally in a large number of communities. Many of these sites are located
in urban areas,  are  accessible by  children, and expose the population  to contamination. Once
contaminated, groundwater, sediments, and soils may be extremely difficult and costly to clean
up.  Some sites will require decades to clean up because of their complexity and for some sites,
removing or destroying all of the contamination is not possible.  Residual contamination at these
sites will need to be managed on site, creating a need for long-term stewardship.

       To  protect  human  health and  the  environment  and address  potential  barriers to
redevelopment, the  Superfund Remedial Program works  with states, Indian  tribes, and other
Federal agencies to:  1) assess  sites and determine whether they meet the criteria for Federal
Superfund response actions; 2) prevent, minimize or mitigate significant threats at Superfund
sites through removal actions;  3)  generate accurate risk assessment and cost-performance data
critical  to providing the technical foundation  for  decisions made in environmental cleanup
programs; 4) complete remedial cleanup construction at sites listed on the National Priority List
(NPL); 5) control human exposures and the migration of contaminated groundwater at NPL sites;
6) develop technologies for cost-effective characterization and  remediation; 7) ensure long-term
protectiveness of remedies by overseeing operations and maintenance and conducting five-year
reviews; 8) enhance the role of states and Indian tribes in the implementation of the Superfund
program; 9) work with  the  surrounding communities to  improve their direct involvement in
every phase of the cleanup process and their understanding of potential site risk;  10) continue
progress of cleanups while increasing consistency with other  EPA cleanup programs; and 11)
promote reuse and redevelopment of Superfund sites.

       EPA's  efforts  to address uncontrolled releases at Superfund  sites begin when states,
Indian tribes, citizens, other Federal agencies, or other sources  notify EPA of a hazardous waste

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site or incident. EPA confirms this information and places sites requiring Federal attention in the
Agency's  Comprehensive  Environmental Response, Compensation and Liability Information
System (CERCLIS) database, or in the case of Federal facilities, sites are placed on the Federal
Agency Hazardous Waste Compliance Docket.  EPA assesses these sites to determine whether
Federal  action is needed.  In most cases, EPA makes a determination that no further Federal
action is required.  These sites are removed from the inventory.  If warranted, EPA may refer
sites removed from its inventory to state or Tribal environmental authorities for further attention.

      For those sites requiring additional action to protect public health and the environment,
EPA seeks the course of action best suited to the individual site. Sites posing immediate risks
may be addressed under removal authority. EPA may defer response at sites with ongoing state
action.  In some instances, potentially responsible parties enter into agreements with EPA to
evaluate or  clean  up sites prior  to  listing on  the NPL.  In  such cases,  where cleanup is
progressing in a timely and protective manner or is completed prior to final listing, listing on the
NPL may be unnecessary.  Some sites  may be addressed under both removal  and remedial
authorities when, for example,  early removal action is taken to address immediate risks at sites
on the NPL.  As a matter of policy, EPA  seeks a concurrence from a state's governor before
listing a site on the  NPL.

      For sites listed on the NPL, remedial work begins  with  site characterization and a
feasibility study to review  site  conditions and evaluate strategies for cleanup, taking into
consideration reasonably anticipated  future land use.  These actions form the foundation for
remedy selection, which is documented in the record of decision. Community involvement  is a
key component in  selecting the proper remedy at a site.  A remedial action is performed upon
approval of the remedial design and represents the actual cleanup or other work necessary to
implement the  remedy  selected.   Potentially responsible parties  or other Federal agencies
perform remedial action work.  EPA, states or Tribes may also perform remedial cleanup as
fund-financed actions with either EPA, the state or Tribe leading the cleanup action.

      As of January 6,  2004, EPA assessed over 45,300 sites, completed final cleanup plans at
over 1,100 Superfund NPL sites,  conducted over 7,900 removal cleanup actions at hazardous
waste sites to reduce immediate threats to human health and the environment, and removed more
than 33,400 sites from the CERCLIS waste site list to help promote the economic redevelopment
of these properties.  The Agency also cleaned up or had  construction underway at 93 percent of
the 1,518  sites on the final NPL (final and deleted  sites as of  January 6, 2004). Of these 1,518
sites,  59 percent have cleanup construction completed (890 sites as of January 6, 2004). A total
of 700 projects are  ongoing at over 430 sites as of January 6,2004.

      Human Health and Environmental Risks:  The Superfund program  fulfills an important
environmental mission  of reducing  risks to  human health  and the environment posed  by
dangerous chemicals, pollutants and contaminants in the  air, soil and water.  The  Superfund
program and its partners, including other Federal agencies, states, local and Tribal governments
and others, work collaboratively to reduce these risks.
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       The Superfund program continues to address sites that pose an immediate or direct risk to
human health and the environment.  Response actions are underway at numerous Superfund sites
where residential areas are impacted by hazardous  wastes.   The Tar Creek,  OK site is  a
residential area contaminated with lead and other metals from lead and zinc mining. In calendar
year 1997, approximately 25 percent of the children had elevated blood lead levels compared to a
statewide average of 3 percent. Elevated blood lead levels of health concern in children refer to
levels greater than or equal to 10 ug/dL.  By calendar year 2000, children with elevated blood
lead levels had been  reduced by 50 percent,  largely  due to  residential  soil cleanup and the
extensive health education activities.23 Residential cleanup activities are continuing on this site.

       The Oronogo/Duenwig Mining Belt, MO site (Jasper County site) is  a former lead and
zinc mining  site.   A  1991 childhood lead study performed by  the  Missouri  State Health
Department and  ATSDR indicated that more than  14 percent of the children in the area had
blood lead levels of health concern (greater than or equal to 10ug/dL).24  A childhood lead study
was performed again in 2001, which indicated that the number of children in the area with blood
lead levels of health concern had dropped to 2 percent. 25  This 86 percent reduction in children
with elevated levels of blood lead, as well as a 40 percent reduction in average blood levels of all
children tested,  is  attributed to the environmental  and educational intervention activities
undertaken at the site and surrounding communities.

       Response actions are underway or completed at  other  sites with lead contamination
similar to  Tar Creek and Oronogo/Duenwig including: Omaha Lead, NE, Herculaneum Lead
Smelter, MO (where 28 percent of the children in the area have elevated blood lead levels of
health concern) and Bunker Hill, ID.

       The Superfund program has been instrumental in responding  to  reduce or eliminate
human exposures to contaminants in residential areas.  An example is the Grand Street Mercury,
NJ site which was a former industrial building, contaminated with mercury, that was converted
into apartments.  Twenty of the 29 residents tested, five of whom were children, possessed levels
of mercur in their urine that might cause subtle neurological changes and renal tubule (kidney)
effects.  Response activities  included  permanently relocating the residents and demolishing the
building. Dissociating the residents from the site and implementing measures to prevent further
off-site mercury migration have mitigated the risks to residents and minimized the risks to
neighbors  of the site.  Eighty years of vermiculite ore mining has caused asbestos  to  spread
throughout the town of Libby, MT, where  18 percent of the tested population have abnormalities
of the lungs from the contamination  (compared to  0.2-2.3 percent hi the  general population),
asbestos-related deaths  appear to be 40-80 tunes the state and national averages,  and lung
23 U.S. EPA, Region 6. "Tar Creek Site Summary." Washington, DC: EPA. Accessed: January 8, 2004. Available only on the
Internet at: http:/A\'Av\v.epa.gov/earthlr6/6sf>''pdfIiles/'tarcreek.pdf
24 Agency for Toxic Substances and Disease Registry (ATSDR). Jasper County, Missouri Superfund Site Lead and Cadmium
Exposure Study (Final Report). Missouri Department of Health, Division of Environmental Health and Epidemiology, Bureau of
Environmental Epidemiology, 1995.
25 Missouri Department of Health and Agency for Toxic Substances and Disease Registry. "Jasper County, Missouri Superfund
Site   Childhood   Follow-up    Lead   Exposure    Study."   Available   only    on    the    Internet   at
http://www.dliss.state.Trio.us.-'Pre%;entionATidWe11ness/Jasper_report.hrm
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cancers are 20-30 percent higher than expected.  Response actions are ongoing to reduce
asbestos exposure and ATSDR has determined that areas already remediated by EPA no longer
pose apparent public hazards.26 At the Vasquez Boulevard/Interstate 70  site in the northeast
section of Denver, CO, test results show that some residential properties have high levels of
arsenic and lead hi soil.  Approximately 650 properties sampled to date have arsenic levels hi
soil that might pose a public health hazard for preschool children who may be exposed through
incidental intake of soil.   EPA has  also identified approximately 260  properties where the
increased  risk for cancer is unacceptable in adults  who  also lived there as children.   EPA is
continuing to clean up these properties and to identify other areas of concern.

       At the Wellsbach, NJ site, exposure to radioactive materials is  being, eliminated through
Superfund activities. Work is  underway to reduce PCB exposure hi Anniston, AL, where some
residents  have  elevated  PCB levels hi their blood.   These are just a  few examples that
demonstrate how the Superfund program has and continues to improve public health through
response activities that reduce the public's exposure to hazardous pollutants.

       Environmental Results:  Environmental data gathered by EPA through September 30,
2003, shows that since the inception of the Superfund program, EPA has: 1) provided alternative
drinking water supplies to nearly 613,000 people at NPL and non-NPL  sites to protect them from
contaminated ground and surface water; 2) relocated over 32,000 people  at NPL and non-NPL
sites in instances where contamination posed the most severe immediate threats; 3) treated or
removed 967 million cubic yards of hazardous solid waste; and 4) addressed 375 billion gallons
of hazardous liquid waste (including contaminated groundwater).

       The Superfund program seeks to improve  its ability to measure true environmental
progress hi achieving its  mission.   In  FY 2005, EPA will measure  Superfund's progress
(including that associated with the Superfund Federal Facilities Response program) hi achieving
environmental results through six key performance measures. These six measures include:  (1)
assessing  the extent of contamination at  sites, (2)  controlling identified unacceptable human
exposures from site contamination to  levels that are at or below health-based levels for current
land  and/or  groundwater  use  conditions,  (3)  controlling  the  migration  of contaminated
groundwater  through engineered remedies or natural processes,   (4) selecting final remedies
(cleanup targets), (5) completing construction of the  selected remedies,  and, (6) making land
ready for  reuse.  These measures highlight important milestones hi achieving risk reduction; no
single measure can itself adequately capture the  environmental benefits derived from the  entire
Superfund program.

       Two of  Superfund's performance measures have been  hi place  for some time. The
Superfund Program has  collected data  on site assessment (measure   1)  and  construction
completions (measure 5) for several years and will continue to do so hi FY 2005.  In 2002, the
26 Agency for Toxic Substances and Disease Registry. Public Health Assessment Libby Asbestos Site Libby, Lincoln County,
Montana EPA Facility ID: MT0009083840. Atlanta, GA: US Department of Health and Human Services. May 15, 2003.

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Superftmd program began reporting  on two additional measures:   Human Exposure  Under
Control and Contaminated Groudwater Migration Under Control.

       Beginning in FY 2004, the Superfund Remedial program will target and track Remedy
Selections (measure 4) for the first time.  In selecting final remedies, the Agency seeks to address
all  current and potential sources of  contamination that  threaten human  health  and the
environment.  Remedies are selected based on many criteria, including the protectiveness they
offer,  environmental  media  cleanup  objectives,  their short and  long  term effectiveness,
implementation issues, and their acceptability to state and Tribal governments and the affected
community.  In selecting remedies, EPA and its partners also consider reasonably anticipated
future land use. At the end of FY 2002, there was a universe of 1103 sites with final remedies
selected.  The Agency is currently evaluating this baseline and may adjust it downward hi the
future. The Superfund program expects to select final remedies at an additional 20 sites per year
during FY 2004 and FY 2005.

       The human exposure under control measure, (2) above,  is meant to describe whether
adequately protective controls are in place to prevent any unacceptable human exposure under
current land and groundwater use conditions only.   This measure does not consider potential
future land or groundwater use conditions or ecological receptors. As of September 30, 2003,
1,227 NPL sites (over 80 percent) had human exposures under control. The Superfund program
expects to control human exposures at an additional 10 sites in FY 2005.

       The groundwater migration under control measure, (3) above,  is meant to  describe
whether the migration of contaminated groundwater from a  Superfund site is being controlled
through engineered remedies or natural processes.  As of September  30, 2003, the migration of
contaminated groundwater  was  under control at 826 NPL sites  (over 60  percent) with
contaminated groundwater.   The Superfund  program expects  to  control the  migration of
contaminated groundwater at an additional 10 sites in FY 2005.
                        Environmental Indicators
                 Human Exposure Under Control    Contaminated Groundwater Migration
                                                   60.5%
                 803%
                                     11.7%
                                                                 16.6%
                                                   22.8%
                     Under Control
Not Under Control
                                                       Insufficient Data-
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       The Superfund Remedial  program  is committed to returning underutilized land  to
productive reuse through its cleanup and other actions.  In FY 2003, the Superfund program
tasked a workgroup to develop performance  measures to help quantify Agency accomplishment
for this activity.  The result is that in FY 2004, two new measures will be introduced: (1) sites
with land ready for reuse, and (2) acres of land ready for  reuse.  Both measures will include
acreage for the Superfund Federal Facilities Response program, which has been reporting on
these same measures (under the Base Realignment  and Closure (BRAC) program) since FY
1997.  EPA will report accomplishments for these two measures for FY 2004 and FY  2005.
EPA may set targets for these  accomplishments hi  future  years if analysis reveals that such
targets would be meaningful.

       As the Superfund program seeks to improve and refine its existing program measures, it
is actively working on several new measures  for use in the years beyond FY 2005:

       •     Ecological Risk Reduction measure - The Superfund and  RCRA programs are
working together to develop an Ecological Risk Reduction measure. This measure is intended to
quantify  the benefits resulting  from cleanup actions by estimating the degree to which the
selected remedy protects ecological  receptors from contaminants at the site.  Within the next
several years, EPA intends to develop and pilot a draft methodology to ascertain the feasibility of
implementing this  type of measure.   Based on the pilot results, EPA and its partners seek  to
develop a measure that demonstrates  ecological risk reduction by FY 2008.

       •     Exposure Control  measure - The Superfund  program is  in  the  process  of
developing an  exposure control  measure to  better quantify  the human health benefits resulting
from cleanup actions. Within the next several years, EPA intends to develop and pilot a draft
methodology to ascertain the feasibility of implementing this type of measure. Based on the
pilot results, EPA and its  partners  seek to develop a  measure  that demonstrates increased
exposure control of potentially exposed populations by FY 2008.

       EPA is actively seeking input from stakeholders on these two approaches. Most notably,
EPA has shared the  draft methodology for the Ecological Risk Reduction measure with the
National Advisory Council for  Environmental Policy  and  Technology (NACEPT) Superfund
Subcommittee and has received  initial feedback.  EPA also intends to seek stakeholder input on
the draft methodology for the Exposure Control measure.

       Other performance measure-related activities  include  the One  Cleanup  Program
Initiative, in which Superfund is an active participant. The Measuring for Results component of
the One Cleanup Program Initiative  involves developing a unified, cohesive set of performance
measures for all cleanup programs.   In addition, the Superfund program is in the process  of
developing one or more efficiency measures by FY 2006.

       Superfund Pipeline Management Review:  The Agency initiated the  Superfund Pipeline
Management Review (PMR) during FY 2002 to ensure that Agency resources are properly
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focused to achieve maximum results, including protection of human health and the environment
as well as progress towards completion of response actions at sites.

       As of January 6, 2004, Superfund has 1,518 sites on the NPL, of which over 620 require
additional response actions (also called construction) to achieve protection of human health and
the environment.  As the program has matured, more sites have advanced to the construction
phase.  Superfund construction projects are technically complex and costly, and growth in the
number, size,  duration and cost  of these  projects over time has resulted  hi  a backlog of
construction projects awaiting funding. Superfund cleanups directly support the Agency goal to
preserve and restore the Nation's land.

       Through the PMR, EPA  is increasing the  precision with which  the Agency  tracks
construction completion candidates and projects future construction completion achievements,
extending the planning horizon  for  making funding  decisions  for Superfund construction
projects, and implementing new policies and actions to maximize the use of resources available
for construction.

       Construction Completions:  The Agency remains committed to completing construction
at Superfund sites. The Program expects to achieve construction completion at an additional 40
sites during FY 2004, for a total  of 926 since program inception. EPA expects construction
completion  accomplishments to  remain  at  approximately 40 during FY 2005.   Since the
beginning of the program, the Agency has averaged 42 construction  completions per year.27

       EPA monitors site progress and identifies potential critical points as sites move towards
construction completion.   The  Agency  will continue  to  regularly conduct detailed  and
comprehensive reviews of construction completion candidates funded by EPA to better follow
site  progress,  identify potential  problems, and sharpen  projections of  future construction
completions.

       Remedial Action Project Planning and Resource Allocation:  Funding for EPA Superfund
construction projects is  critical to achieving risk reduction  and construction completion and
restoration of contaminated sites to productive reuse. The cost of EPA Superfund construction
projects underway and those  awaiting funding is rising due to the greater complexity of sites
remaining to be cleaned up on the NPL.  The program faces a large and growing backlog of
projects that are ready to begin construction, while at the same time, is experiencing a growing
challenge to fully fund several  large and complex ongoing projects at  their  optimal pace.
Additionally, as  the EPA Superfund program has matured, the Agency is devoting more
resources toward  post construction activities, including long-term  remedial actions and  5-year
reviews.
27 The Comprehensive Environmental Response, Compensation, and Liability System
(CERCLIS) is the database used by the Agency to track, store, and report JSuperfund site
information.

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       The  Agency is taking the following steps to improve program effectiveness and
efficiency:

       •  Carefully review the scope, budget and schedule of ongoing construction projects to
       ensure available resources are directed where they are needed;

       •  Review construction start candidates to ensure that sites that present the greatest risk
       to human health and the environment are addressed, while balancing the programmatic
       need to complete construction at other sites;

       •  Maximize the involvement of responsible parties to conduct cleanups by finding them
       earlier and having them pay earlier;

       •  Maximize  the  use of resources  already   available  to  the  Agency,  including
       deobligations of prior year funds and reimbursements;

       •  Continue to  implement administrative reforms which  have already yielded $1.7
       billion in cost savings; and

       •  Continue to work with developers  and partner with other Federal agencies (such as
       the US Army Corps of Engineers) to leverage the Program's resources.

       EPA places a  high priority on construction funding.  Priorities for funding  Superfund
construction projects are established as follows:  (1) the  highest priority is given to funding
emergencies which pose imminent threats to  human health and the environment, (2) the next
priority is ongoing construction projects that have already begun and  which require additional
resources, and (3)  new construction projects.  During FY 2003, funding was provided for more
than 100 ongoing construction projects and long-term response actions, as well as 11 new start
construction projects.  However, funding was not available for 14 new construction projects that
were reviewed for  funding by the National Risk-based Priority Panel in FY 2003.  In addition, 11
new start projects  considered for funding by the panel encountered schedule delays, but will be
ready to proceed during FY 2004. These 25 projects have a cumulative estimated cost exceeding
$225 million and will be reconsidered for funding in FY 2004.

       In addition to  the FY 2003 unfunded projects mentioned above, the Regions have
identified a large number of new construction projects that will be reviewed for funding by the
National Risk-based Priority Panel during  FY 2004.  In addition, the Program's construction
funding needs are  projected to continue to grow  hi FY 2005 as well.  To address the Agency's
growing construction project needs, the President has requested an increase of $150 million for
construction in FY 2004. This increase is also included hi the base request for FY 2005. With
the additional resources requested, EPA will initiate 10 to  15 new construction projects both hi
FY 2004 and hi FY 2005. The exact number will depend on the selection of projects and their
estimated cost.

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       Superfund Program Initiatives:  National Advisory Council for Environmental Policy and
Technology (NACEPT) A key component of the One Cleanup Program initiative is undertaking
a stakeholder dialogue on the future direction of the Superfund program in the context of other
waste cleanup programs.  The Agency initiated this dialogue in June 2002 with the creation of
the Superfund Subcommittee under the NACEPT.  The Subcommittee is working to render
consensus-based recommendations on three key issues:  (1) the role of the NPL, (2) complex and
expensive  sites,  called  megasites,  and  (3)  measurement  of program  progress.    The
Subcommittee's final report is due by April 2004.

       NPL Listing Policy. EPA is working to thoroughly examine its policies with regard to
decisions to place new sites on the NPL.  As noted above, a new NACEPT Subcommittee has
been convened to provide broad Superfund program stakeholder advice on NPL listing.  The
NACEPT Subcommittee's final report is due by April 2004, and it will address  a longer term
future of Superfund.

       Superfund Pre-SARA/First Generation  Site Initiative. Closely tied  to  the PMR is the
Superfund pre-SARA site initiative.  As of the end of FY 2003, 185 non-Federal and Federal
facility sites that were placed on the NPL prior to October 16,  1986 (date of enactment of the
Superfund Amendments and Reauthorization Act, SARA) were not construction complete. This
initiative encourages Regions, working with states, other Federal agencies and local jurisdictions,
to resolve issues necessary to move these pre-SARA sites into the construction completion
category.  Specifically, the initiative will:

       •  Focus on developing stakeholder-based schedules for resolving  remaining  issues
       delaying  the  completion  of longer duration sites (i.e.,  Federal and non-Federal,  pre-
       SARA, final NPL sites);

       •  Facilitate the resolution of issues necessary to completing construction at these sites
       by identifying the scientific, technical and legal  issues  to be resolved, sequencing the
       resolution of issues to maximize completions over the next 5 to 10 years, and establishing
       accountability for issue  resolution (e.g.,  Research  and Development,  Enforcement,
       Federal Facilities, Superfund);

       •  Allocate program resources to better leverage cleanups at these sites (e.g., factoring in
       the cost of 'warehousing sites,' as well as funds needed for completion);

       •  Provide more aggressive management oversight, tracking of site progress, reporting
          of accomplishments, and publicizing results; and,

       •  Use lessons learned from analysis of past sites to minimize the number of future sites
          lingering on the NPL in the future.

       Post Construction Completion.  Although construction completion is a major milestone in
the Superfund program, many activities occur at a site after construction is complete. These post

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construction activities are essential to assure that Superfund  sites remain protective and are
suitable for reuse following cleanup. The activities include:

       •  Oversight of operation and maintenance activities performed by the states, private
          PRPs, and other Federal agencies to ensure that the remedies work properly;

       •  Operation of fund-financed groundwater restoration systems for up to 10 years (long-
          term response), and oversight of states  and PRPs operating  these systems  until
          cleanup goals are achieved;

       •  Implementation and oversight of institutional controls;

       •  Five-year reviews to ensure remedies remain protective of human health and the
          environment;

       •  Optimization of groundwater restoration systems to improve  performance and/or
          reduce costs; and,

       •  NPL site deletion and partial deletion.

       As  more  NPL sites  reach  the milestone of construction  completion,  the focus of
Superfund cleanups turns to ensuring that response actions provide for long-term protection of
human  health and the environment.   In  FY 2005,  EPA  will continue  to  implement  a
comprehensive Post Construction Completion Strategy for managing  current and former NPL
sites. EPA will work closely with states, Tribes, other Federal agencies, local partners and other
stakeholders to implement the strategy.

       One area requiring increased emphasis is institutional controls (ICs).  EPA defines ICs as
non-engineered instruments, such as administrative and/or legal controls, that help to minimize
the potential for human exposure to contamination and to protect the  integrity of a  remedy by
limiting land or resource use.  The challenge of ICs is that although they play a critical role in
remedies, they are often  implemented, monitored and  enforced  by  different agencies and/or
entities at different levels  of government. To ensure the long-term reliability of ICs,  structured,
coordinated and routine 1C tracking must occur.  For this reason, EPA is continuing to work with
other Federal agencies, states, Tribes, local governments and industry in the development of a
tracking approach to better manage 1C information.  This concept promotes the identification of
core data categories, the use of common 1C definitions, and the virtual sharing of 1C information
among various 1C co-regulators and other stakeholders.

       The main  goal  of the Coordinated 1C  Tracking Concept is to promote  pro-active
stewardship throughout the entire  1C life-cycle  by facilitating the collection,  tracking, and
sharing of accurate information about ICs. The concept is to coordinate different Federal, state,
Tribal, local government and industry systems through a virtual network.  An EPA system will
be one part of the network, and will provide links to other tracking systems and mechanisms to
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share information.  To create this network, EPA has begun a collaborative development process
among co-regulators, industry and other stakeholders that seeks to: 1) leverage information from
existing systems; 2) provide an  opportunity for data to be collected by organizations not
currently tracking ICs; 3) identify and exchange methods for effective data sharing; 4) pilot the
sharing of information on a minimum set of data elements;  and, 5) identify data stewards to
support the formation of a network for data sharing. Progress has been made on the development
of a national registry and development of a prototype Superfund 1C Tracking System, but a
significant amount of work remains to place the  system into production, populate and support
implementation of the National 1C Tracking Network.

       Reuse. EPA is increasingly aware of the importance of fully exploring with its partners
future  land  use opportunities at  Superfund sites and BRAC facilities  before  selecting and
implementing a cleanup remedy.  In FY 2005, the Superfund reuse initiative will continue to
facilitate the return of Superfund sites to productive use. As a result of these efforts, Superfund
sites that were once thought to have no future use potential are now being "recycled" back into
productive use. EPA has compiled a list of nearly 300 Superfund sites that are in reuse or where
reuse is planned. More than 60,000 acres are now in ecological or recreational use at these sites.
Additionally, more than 30,000 jobs, representing approximately $1.3 billion in annual income,
are located at sites that have been recycled for commercial use. Under this initiative, EPA will
continue to focus its efforts on helping communities plan for reuse of Superfund sites. EPA can
then select,  design,  and implement cleanups that  are protective  of human health and the
environment  and that are also consistent with anticipated future uses.   EPA  has  given
communities at 71 pilot sites up to $100,000 each in direct financial assistance and/or services.
EPA will assess the impacts from these projects on the Superfund program and their potential to
facilitate site reuse following cleanup.28

       Community. State, and Tribal.  EPA is  committed to involving the community in the site
cleanup process.   Superfund bases its community  involvement on two-way communication
designed to keep citizens informed about site progress and give them the opportunity to provide
input on site decisions. The Agency conducts outreach efforts, such as holding public meetings
and public availability sessions and by distributing site-specific fact sheets.  Superfund also has a
variety of community involvement programs, such as the Technical Assistance Grant (TAG)
program, the Community Advisory Group (CAG) program, the Technical Outreach Services for
Communities (TOSC)  and Technical  Outreach  Services for Native American  Communities
(TOSNAC) programs, and the Superfund Job Training Initiative (SuperJTI). The TAG program
provides communities  with financial assistance  to  hire technical  advisers to  assist them in
understanding the problems and potential solutions to address hazardous waste  cleanups. A
CAG is a group of community stakeholders,  which reviews plans  and activities and provides
input on local needs and concerns to those responsible for cleaning up a Superfund site.  TOSC
and TOSNAC  are  university-based outreach programs that provide technical  assistance to
28 EPA, Office of Superfund Remediation and Technology Innovation, Superfund
Redevelopment Successes. Accessed January 8, 2004. Available through the internet at:
http.'/'/mvw.epa.gov/siiperfund/programs/'recycle

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communities that are affected by hazardous substances.  SuperJTI supports job training programs
in communities affected by nearby Superfund sites and encourages the employment of trainees at
local site cleanups. The Agency strives to create a decision-making process to clean up sites that
communities  feel is open  and legitimate, and improves  the  community's understanding of
potential risk at hazardous waste sites.

       States and Indian Tribes are key partners at Superfund sites. EPA can authorize the states
or Tribes to carry out or share responsibility for fund-financed remedial actions.  However, states
and Tribes more often operate in the role of a support agency to remain actively involved in site
response activities while EPA plays the lead role.  To support their involvement as a lead or
support agency,  EPA provides financial support through  cooperative agreements to conduct
removal,  site  assessment,  remedial,  and enforcement projects and  for core infrastructure
development activities.

       Under Core Program Cooperative Agreements, EPA provides non-site- specific funds to
develop, maintain and enhance  state and Tribal capacity to manage and implement Superfund
cleanups. EPA  currently has Core Program Cooperative  Agreements with 46 states and 55
Tribes or Tribal consortia.  Activities funded under the Core Program Cooperative Agreements
include:   1) developing procedures for  emergency response and long-term remediation  (e.g.,
health and safety plans, quality assurance project plans, and community  relations plans);  2)
satisfying all  Federal requirements and  assurances  (e.g., fiscal  and contract management
activities for CERCLA);  3) providing legal assistance  (e.g., coordinating applicable or relevant
and appropriate requirements (ARAR) identification); and, 4) training staff to manage publicly-
funded cleanups.

       Meaningful stakeholder involvement is also central to EPA's Superfund Federal Facilities
Response program.    EPA's Federal  Facilities Restoration  and Reuse Office  (FFRRO)
collaborates with a unique set of state and Tribal associations, environmental groups, community
advisory boards, labor organizations, and  universities to ensure that social, cultural, and
economic factors are considered when making cleanup and reuse decisions at Federal facilities.
In FY 2005, FFRRO will  continue to cultivate  new  relationships  with other Federal facility
stakeholders  who have  yet to be brought into  the fold — particularly those  located in
environmental justice communities.

       Quality Assurance.   In an effort to better implement the Agency's Quality Assurance
Order (EPA Order 5360.1 A2 May, 2000), EPA is enhancing the quality management activities
of its Superfund program office.  This  work entails the  implementation of a quality management
plan based on the EPA Order. Specific enhancement of standard operating procedures, guidance
for the development and application of models, training for quality  related activities, and other
activities will aid in promoting quality.  The quality management plan will initiate a continuing
process to improve environmental cleanup decisions.  These activities will continue to promote
cross program coordination so  that Superfund cleanup efforts  will reflect increasing progress
toward consistency and transparency across programs that is needed to support the goal of one
cleanup program. The maintenance of up-to-date standard  operating procedures allows EPA to
continue to take immediate actions to address homeland security threats and other responses that
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require quality assurance  procedures  for the collection and  assessment  of data  to  support
decisions  on  hazards  and  cleanup.   Finally,  these  quality  assurance  activities  support
revitalization efforts through the establishment of transparent  and consistent standards  for
environmental cleanups.

       Activities to establish consistent quality assurance processes among EPA,  DOD, and
DOE will continue in FY 2005.  An Intergovernmental Data Quality Task Force (IDQTF) has
completed development of a Uniform Federal Policy for Implementing Quality Systems which
has been approved by EPA, DOD and DOE.  The Task Force  is chaired by the Director of
FFRRO.   This policy will form  the basis  of a DOD-wide quality  system  and is under
consideration as the basis of a DOE-wide system.

       The IDQTF will issue a Uniform Federal Policy for Quality Assurance Project Plans
following comment by  DOD, DOE,  the Association of State and  Territorial Solid Waste
Management Officials, and EPA headquarters and regional offices. The Task Force feels the use
of this policy will promote consistency and uniformity in planning data collection. Anticipated
results include unproved data quality and cost  and time savings in the future.  While these
policies are based on a national consensus standard (Specifications and Guidelines for Quality
Systems  for Environmental Data Collection  and Environmental Technology  Programs
(ANSI/ASQC E-4)), agreement between Federal agencies on adopting specific procedures in the
quality arena is a new and innovative approach.  These initiatives will also support compliance
with the guidance issued by the Office of Management and Budget on February 22, 2002,
entitled "Guidelines for Ensuring and Maximizing the Quality, Objectivity, Utility and Integrity
of Information Disseminated by Federal Agencies," which were required by Public Law 106-
554.

Superfund:  Support to Other Federal Agencies

       Other Federal agencies contribute to the  Superfund program by  providing  essential
services in areas where EPA does not possess the necessary specialized expertise. Contributors
include the Department of Interior (DOI), the National Oceanic and Atmospheric Administration
(NOAA), the Federal Emergency Management Agency (FEMA), the Occupational Safety and
Health Administration (OSHA), and the United States Coast Guard. For example, DOI provides
response preparedness and management activities  that support the National Response System
(NRS); provides Federal, state and Indian Tribe trustees to assess damage to natural resources as
a result of hazardous substances releases; and provides scientific support  to  develop  ways to
include natural resource restoration in removal actions.  FEMA provides technical and financial
assistance to support the National Contingency Plan and  the NRS through development of
preparedness exercises and hazardous materials training.
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                                 Other Federal Agency Funding
Agency
DOI
FEMA
NOAA
OSHA
USCG
Total
FY 2004 Pres Bud
$997,700
$1,097,400
$2,444,500
$648,500
$5,487,900
$10,676,000
FY 2005 Request
$997,700
$1,097,400
$2,444,500
$648,500
$5,487,900
$10,676,000
Superfund: Federal Facilities

       Thousands of Federal facilities nationwide are contaminated  with hazardous waste,
military munitions, radioactive waste, fuels, and a variety of other toxic contaminants.  These
facilities include  many different types of sites, such  as formerly used defense sites (FUDS),
active, closing and closed installations, abandoned mines, nuclear weapons production facilities,
fuel distribution areas, and landfills. There are 177 Federal sites listed on the NPL (158 final, 13
deleted, 6 proposed), over 9,300 FUDS,  and approximately 50 DOE Formerly Utilized Site
Remedial   Action  Plan   (FUSRAP)   sites.      There   are  currently   484   remedial
investigations/feasibility studies, 72 remedial designs, and 218 remedial actions being addressed
at NPL sites in the Superfund Federal Facilities Response program.  Forty Federal sites have
reached the construction completion stage, with one installation scheduled for completion in FY
2004 and seven more targeted for FY 2005.  In many cases, Federal facilities  cleanups face
unique challenges due to  the types of contamination present (e.g., radiation, military munitions),
the size of the facility (e.g., DOE's Hanford site is over 500 square miles - the size of the State
of Rhode Island), or the complexities of reuse related to environmental issues, as in the case of
base closures.

       FFRRO works with DOD, DOE, other Federal agencies, states, Tribes, and the public to
find protective, creative, and cost-effective cleanup solutions, while encouraging restoration and
property reuse.   The Superfund Federal Facilities Response program provides  technical and
regulatory  oversight at Federal facility sites to ensure protection of human health, effective
program implementation, and meaningful public involvement. The Agency encourages citizen
involvement by working with DOD and DOE to establish Restoration Advisory Boards (RABs)
and Site-Specific Advisory Boards (SSABs), respectively.

       Performance goals and measures for the Superfund Federal Facilities Response program
are a component of the overall response cleanup measures.  EPA's  ability to meet its annual
Superfund   Remedial  program targets  (site  assessment,  remedy  selection,  construction
completion, environmental indicators such as groundwater migration and human exposure under
control, and property reuse) is partially dependent on work performed at NPL Federal facility
sites.  Such issues as military munitions, post-record of decision (ROD) authority disputes, and
reduced environmental cleanup resources play a major role in construction completion targets
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being accomplished on schedule at Federal sites. For example, due to post-ROD dispute issues
at DOD installations, over 70 remedy decision documents have been delayed of late.  However,
since December 2003, EPA has helped to rapidly reduce the backlog by 22 documents. In FY
2001,  DOE  began  a top-to-bottom  review of  its  environmental  management  mission.
Developing a new plan with innovative approaches to expedite the cleanup of DOE sites and
reduce risk  to  human health, safety and the environment  is the  objective of the review.
Following the review, DOE, EPA and states negotiated expedited cleanup plans and high level
documents establishing  accelerated  cleanup  principles.   DOE  field offices then  prepared
Performance Management Plans based on strategies outlined in the Letters of Intent. Increasing
the pace and approach to DOE cleanup will require a corresponding increase in the level of EPA
effort necessary to negotiate RODs and compliance agreements, and to oversee cleanups to
ensure that human health and the environment are protected. DOE has begun to implement the
recommendations of the DOE top-to-bottom review by requiring each site must prepare a risk-
based  end-state  vision that will be concurred upon by  the regulators.   The  deadline  for
preparation of the risk-based end states vision reports is January 2004.  In addition, DOE  has
requested EPA's continued involvement in reviewing relevant policy and guidance documents.
In FY 2005, EPA will continue working with DOD, DOE, and  other Federal agencies to
maximize construction completions and promote property reuse.

       There continues to be increasing  demand for EPA's involvement in DOD's Military
Munitions Response and FUDS programs.  The General Accounting Office (GAO) has estimated
that millions of acres of training ranges in the United States and its territories are contaminated
with military munitions.29  By their nature, military munitions (unexploded ordnance (UXO),
buried munitions,  and  reactive  or ignitable soil)  present  explosive, human  health, and
environmental risks.  The different  types of military  munitions vary  in their likelihood of
detonation and  sometimes these  anomalies are just laying  around waiting to  be picked up by
innocent victims hiking or playing nearby. When  disturbed, munitions may explode causing
immediate death or injury. EPA is working  on several initiatives with DOD, the states, and
Federal Land Managers to help  build DOD's Military Munitions Response program.  These
initiatives include: participation in the Munitions Response Committee to coordinate, identify,
and synchronize munitions response efforts with DOD; review and comment on the Munitions
Inventory and Munitions Response Prioritization Protocol; development of EPA guidelines to
provide direction to those overseeing response actions involving UXO/ordnance and explosives
(OE); publishing and updating a handbook on the management of OE that will offer information
on the technical  issues associated with the cleanup of military munitions; and,  conducting
UXO/OE training for all EPA regions and state, Tribal, and  DOD staff involved in UXO/OE
responses at Federal facilities.

       EPA is finding itself more involved in the environmental investigations and cleanups of
privately-owned FUDS.  FUDS are sites formerly owned, leased, possessed, or operated by DOD
that are, in some cases, now owned by the states, Tribes, cities, and other government entities, as
29 "DoD Training Range Cleanup Cost Estimates Are Likely Understated," GAO-01-479, April
2001, p. 1

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well as individuals or corporations, etc.   The Defense Environmental Restoration Program
(DERP) assigns DOD the "responsibility" to conduct response actions consistent with CERCLA
and the National  Contingency Plan at such properties.  The U.S. Army Corps of Engineers
(USAGE) implements the FUDS program for DOD.

       The Agency is  working on several initiatives with the USAGE, states, and Tribes hi the
identification and  cleanup of over 9,300 FUDS nationwide.  EPA has finalized a policy which
articulates how the Agency plans  to undertake its  obligations  and responsibilities at non-
Federally owned, non-NPL FUDS. Over the past several years, EPA, the states and public have
expressed concerns with USAGE response actions, environmental investigations, and cleanups at
privately-owned FUDS that are not  on the NPL.  Some FUDS have been redeveloped for uses
inconsistent with then- environmental condition (e.g., housing, schools).  Spring Valley, located
hi northwest Washington, D. C. is the nation's first FUDS involving the cleanup  of chemical
munitions hi a residential area. This site work, which is being managed by the USAGE, includes
a university and an adjacent neighborhood where World War I chemical warfare  agents were
tested and disposed of in 1918.

Federal Facility Interagency Agreements

       CERCLA § 120 requires that all Federal facility  sites on the NPL sign an LAG which
provide enforceable schedules for  the progression of the entire cleanup.  The  signing and
implementation of an LAG ensures a protective cleanup at a timely pace. EPA will also monitor
milestones in existing LAGs, resolve disputes, and oversee all remedial work being conducted by
Federal facilities.   EPA will work with affected agencies to resolve outstanding policy issues
relating to the cleanup of Federal facilities.

Base Realignment and Closure (BRAC)
       Since   FY   1993,  EPA's
Superfund  BRAC  program  has
worked with DOD and the states'
environmental programs to achieve
the  Agency's  goal  of  "making
property         environmentally
acceptable   for   transfer,  while
protecting human health and the
environment" at realigning, closing
or  closed  military  installations.
These    activities   complement
Agency themes of  one  cleanup
program    and    revitalization.
Between FY  1988 and FY 1995,
497 major Army, Navy, Air Force,
and  Defense  Logistics   Agency
       Time and Cost Avoidance Attributed to
EPA Participation in the Fast Track Cleanup Program
FY02
FY01
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FY99
FY98
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FY96J
FY95







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military installations were  slated either for realignment  or closure.  Of these 497 BRAC
installations, 107 have been designated accelerated cleanup  installations.   The four rounds of
BRAC are generally referred to as BRAC 1988, BRAC 1991, BRAC 1993, and BRAC 1995,
indicating the year in which each cluster of military installations was selected for realignment or
closure.  Accelerating the  cleanup of 107  BRAC installations is intended to make parcels
available for reuse  as quickly as possible via the transfer  of uncontaminated or remediated
parcels, lease of contaminated parcels  where cleanup is underway,  or "early transfer" of
contaminated property.

       Since FY 1993, EPA and DOD have  addressed lease-related concerns at BRAC sites by
preparing findings  of suitability to lease or transfer.   These findings summarize any and all
environmental information upon which DOD relies while establishing environmental restrictions
in leases on property conveyances necessary to protect human health and the environment.  The
majority of BRAC acres planned for transfer from DOD are intended for non-Federal entities. A
major  success for  the accelerated cleanup program is, the  formation of base cleanup teams
(BCTs) at those installations designated as such.  The teams, which include environmental
experts from EPA, DOD, and the  states, engineer common sense approaches to cleanups by
developing common goals and priorities.  The Agency empowers the team to integrate base reuse
priorities while making decisions  to expedite the process of accelerating cleanup.  To further
assist with accelerated cleanups, EPA engages in public participation by working with DOD to
establish RABs at  military  installations. RABs foster teamwork by bringing members of the
community together with military officials and government regulators to discuss cleanup issues.

       EPA and DOD have entered into a new interagency funding agreement which will extend
EPA's involvement in the existing BRAC program through September 30, 2005. The National
Defense Authorization Act  of FY 2002 authorizes another BRAC round for FY 2005.  In FY
2005, the Agency  will continue to focus on meeting the requirements of the  existing BRAC
bases and putting those facilities back into productive reuse. To date, EPA's participation hi the
BRAC program has afforded DOD a savings of $372 million and 468 project years.  This time
and  cost savings for the  BRAC program translates into communities being satisfied since
properties are being put back into productive reuse much quicker.

Superfund Enforcement

       The Superfund enforcement program is critical to the Agency's ability to clean up the
vast majority of the nation's worst hazardous  waste sites.   The program pursues a policy of
"enforcement first" to ensure that sites for which there are viable responsible parties are cleaned
up by those parties.  In FY 2005, EPA will continue to secure Potentially Responsible Parties
(PRP) commitments to conduct new remedial  actions, as its primary strategy for completing
construction at non-Federal facility Superfund sites.   In tandem with this approach, various
Superfund reforms  are being implemented  to  increase fairness, reduce transaction costs and
promote economic redevelopment. The Agency provides funding to the Department of Justice
(DOJ) through an interagency agreement (LAG) to assist EPA  Superfund in enforcement efforts.
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       EPA has successfully encouraged or compelled PRPs to undertake or fund approximately
70% of new remedial construction work at non-Federal facility Superfund sites in recent years.
The environmental benefits cannot be overstated, as most contaminated waste sites would not
otherwise be cleaned up due to limited federal resources.  The program focuses on the following
efforts:  1)  maximizing PRP participation in conducting  or  funding  response actions while
promoting  fairness  hi  the  enforcement process; 2) recovering costs  from PRPs when EPA
expends  funds from the  Superfund Trust Fund; and 3) negotiating agreements  with Federal
facilities  for NPL site cleanup.

       In FY 2005, the  Agency  will negotiate remedial design/ remedial action cleanup
agreements at sites and will also achieve removal agreements at hazardous  waste sites.  Where
negotiations fail, the Agency  will either take unilateral enforcement  actions to  require PRP
cleanup or use  Trust Fund dollars to remediate sites.  When Trust Fund  dollars are used to
cleanup sites, the program will take cost recovery actions against PRPs to recover expenditures.

       The Superfund  program and its stakeholders have benefited from enforcement reforms
implemented in recent years.  These reforms include undertaking early, expanded PRP searches
and investigations to enable "enforcement first" to occur and develop sufficient information to
make orphan share  determinations; making orphan share offers at all eligible sites; expediting
negotiations to facilitate early de minimis settlements; settling with parties with limited ability to
pay; making more  effective and widespread use of Alternative Dispute  Resolution (ADR);
issuing administrative orders to the maximum practicable number of PRPs  at a given site; and
creating site-specific special accounts.

       In FY 2005,  the Superfund cost recovery program will recover monies expended from the
Trust Fund from viable  responsible parties.   Where settlement negotiations and previous
enforcement actions have failed to achieve PRP response, and Trust Fund dollars are used to
cleanup sites, the program will take cost recovery actions against PRPs to recover  expenditures.
By pursuing cost recovery settlements, the program promotes the principle that polluters should
pay cleanup costs at sites where they caused or contributed to the contamination and maximizes
the leverage of the Trust Fund to address future threats posed by contaminated sites. Trust Fund
expenditures will be recouped through administrative actions, CERCLA § 107 case referrals, and
through settlements  reached with the use of alternative dispute resolution.

       The enforcement  program's involvement  in case  referrals and  support  include case
development and preparation, referral and post-filing actions.  The program will also provide
case and cost documentation support for the docket of cases currently being worked on by DOT.
The enforcement program will meet cost recovery statute of limitation  deadlines, resolve cases,
and issue bills for oversight and make collections in a timely manner.

       EPA's financial management community maintains a strong partnership with the
Superfund program. The Office of the Chief Financial Officer (OCFO) recognizes and supports
this continuing partnership by providing the full array of financial management support services
necessary to pay Superfund bills and recoup cleanup and oversight costs for the trust fund.

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OCFO manages Superfund budget formulation, justification, and execution as well as financial
cost recovery.  OCFO manages oversight billing for Superfund site cleanups (cost of overseeing
the responsible party's cleanup activities) and refers oversight debts to the Department of Justice
(DOJ) when they are not paid.

Superfund: Emergency Response and Removal

       EPA plays a major role in reducing the risks that accidental and intentional releases of
harmful substances and oil pose to human health and the environment. As the Federal on-scene
coordinator (OSC) in the inland zone, EPA evaluates and responds  to thousands of releases
annually as part of the  National  Response  System (NRS). The NRS  is a multi-agency
preparedness and response mechanism that includes the following key components: the National
Response Center (NRC); the National Response Team (NRT), composed of 16 Federal agencies;
13 Regional Response Teams (RRTs); and Federal OSCs. These organizations work with state
and local officials to develop and maintain contingency plans that will enable the Nation to
respond effectively to hazardous substance and oil emergencies. When an incident occurs, these
groups coordinate with the OSC in charge to ensure that  all necessary resources, such as
personnel and equipment, are available and that containment, cleanup,  and disposal activities
proceed  quickly,  efficiently,  and effectively.   As a result  of NRS efforts, the  Nation has
successfully contained many major oil spills and releases of hazardous substances, minimizing
the adverse impacts on human health and the environment.

       Each year, EPA personnel assess, respond to, mitigate, and clean  up thousands of
releases, whether accidental, deliberate, or naturally occurring. These incidents range from small
spills at chemical or oil facilities to national disasters, such as hurricanes and earthquakes, to
terrorist events like the 2001 World Trade Center and anthrax attacks,  to the 2003 Columbia
shuttle tragedy.  EPA undertakes removals to prevent, reduce or mitigate  threats posed by
releases or potential releases of hazardous substances, pollutants, and contaminants in emergency
and non-emergency situations at NPL and non-NPL  sites.  EPA undertakes removal response
actions at:  1) emergency incidents where response is necessary within a matter of hours (e.g.,
threats of fire or explosion); 2) tune-critical incidents posing public health and environmental
threats; and, 3) non-time critical  situations at both NPL and non-NPL sites to promote quicker
and less  costly cleanup.  Decisions to conduct removals are  made based on protecting human
health and the environment  and minimizrng risk from uncontrolled releases.  The National
Response System (NRS) is designed to  have responsible parties respond to incidents when
possible, and to have local and state response agencies respond when within their capabilities.
However, for those incidents that are not properly addressed by the responsible party and are
beyond the scope of responses typically managed by the local or state agencies, EPA will assist
or lead the response.  EPA traditionally responds to 350 incidents each year.

       EPA will work to improve its ability to respond effectively to incidents that may involve
harmful  chemical, oil, biological, and radiological  substances.  As part of its strategy for
improving  effectiveness, the Agency will explore improvements in response readiness levels,
including field and personal protection equipment and response training, and exercises; review
response data provided in the "after-action" reports  prepared by EPA  emergency responders
following a release; and examine "lessons learned" reports to identify which activities work and
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which need to be improved.  Application of this information and other data will advance the
Agency's state-of-the-art emergency response operations.

       EPA's emergency preparedness, prevention, and response staff are vital to this work. We
will continue to develop technical personnel hi the field, ensuring their readiness and protecting
their health and safety when responding to releases of dangerous materials. In addition, EPA will
strengthen its information infrastructure by making information management decisions Agency-
wide and by improving operations and the security, collection, and exchange of information.

Superfund: EPA Emergency Preparedness

       Preparedness on a national level is essential to ensure that emergency responders are able
to deal with multiple, large-scale emergencies, including those that may involve chemicals, oil,
biological, or radiological substances.  Over the next several years, EPA will enhance its core
emergency response program to respond quickly and effectively to chemical, oil, biological, and
radiological releases  and  will  improve  coordination mechanisms to  enable  response to
simultaneous, large-scale national emergencies, including homeland security incidents.  The
agency will focus  its efforts on  Regional Response Teams (RRTs)  and coordination among
regions; health and safety issues, including provision of clothing that protects and identifies
responders, training, and exercise; establishment of delegation and  warrant authorities; and,
response readiness, including  equipment,  transportation,  and outreach.   The  criteria for
excellence in the core emergency response program will ensure a high level of overall readiness
throughout the Agency and improve its ability to support multi-regional responses  after a
baseline is established hi FY 2003. EPA anticipates it will improve its  readiness level by 10
percent annually.

       In addition  to enhancing our readiness capabilities, EPA will work to improve internal
and external coordination and communication mechanisms.  For example, as part of the National
Incident Coordination Team, EPA will continue to improve its policies, plans, procedures, and
decision-making processes  for coordinating responses  to national  emergencies.  Under the
Continuity of Operations/Continuity of Government program, EPA will upgrade and test plans,
facilities, training,  and equipment to  ensure that essential  government business can continue
during a catastrophic emergency. NRT capabilities are being expanded to coordinate interagency
activities during large-scale responses.  EPA will coordinate its activities with the Department of
Homeland Security (DHS), Federal Emergency Management Administration  (FEMA), Federal
Bureau of Investigation (FBI), other Federal agencies, and  state and local governments.  EPA
will also continue to clarify its roles and responsibilities to ensure that Agency  security programs
are consistent with the national homeland security strategy.

       Under multiple authorities, including CERCLA, FWPCA, the Oil Pollution Act, and the
National Contingency Plan (NCP),  EPA  supports a highly effective national  emergency
preparedness and response capability.

       Through the National  Response Team  (NRT)TRRTs and the Federal Response Plan
(FRP), the Federal government helps  states and cities address  major incidents that are beyond
their capabilities.   EPA chairs the 16 NRT agencies and co-chairs the 13 RRTs throughout the
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U.S. which coordinates actions of all Federal partners to prevent, prepare for and respond to
hazardous substance and petroleum emergencies, whether accidental or terrorist in origin.

       Building on current efforts to enhance national emergency response management, NRT
agencies will continue the development of the  new National Incident  Management System
(NIMS) and National Response Plan (NRP).  NRT agencies will improve notification  and
response procedures, develop anthrax response  technical assistance documents, continue to
implement and test incident  command/unified command system (IC/UCS) across all levels of
government and the private sector, and assist in the development of Regional Contingency Plans
and Local Area Plans. Technical assistance, training and exercises will be provided to identify
and correct  barriers  to implementing the system (e.g., size  of command structure, cultural
differences between state/local and Federal responders). In the science and technology area the
NRT  will continue to assist  web-based responder training and innovative use  of incident
notification technologies.

       Another important NRT priority is the U.S.-Panama Canal agreement which calls for the
U.S. to provide assistance to the Panama Canal Authority when emergencies that exceed their
capabilities.   In  FY  2005, EPA will work with the Canal Authority's response  officials to
improve their incident management skills, through training assistance  and table top exercises
involving incident notification and response management.

       The FRP, under the direction of the DHS,  provides for the delivery of Federal assistance
to states to help them deal with the consequences  of terrorist events as well as natural and other
significant disasters. EPA has the lead responsibility for the plan's Emergency Support Function
covering hazardous materials  and inland petroleum releases.  As  such it participates  in the
Federal Emergency  Support Function Leaders  Group  which addresses  FRP  planning  and
implementation at the operational level. Through this interagency organization, Federal agencies
handle issue formulation  and resolution, review after-action reports, and evaluate the need for
changes to FRP planning and implementation strategies. They also participate in FRP  exercises,
training and post event evaluation actions, coordinating these activities closely with the NRT.

       Under the NRP, EPA will participate, on the successor organization to the Catastrophic
Disaster Response Group (CDRG) which will  provide  national level  guidance  and  policy
direction on response coordination and  issues that  arise from  emergency  support function
activities.

       In  FY 2005, EPA will  provide staff support to the  DHS's emergency operations  center
during national disasters and emergencies.  EPA will also continue to develop and participate in
training courses  on emergency support function responsibilities, deliver presentations on the
NRP to national forums and participate in nation-wide exercises to test and improve the Federal
government's preparedness and response system and its capabilities.

Compliance Assistance and Centers and Civil Enforcment

       The EPA will continue to provide effective compliance and enforcement  support Clean
Water Act  Section  311  (oil spill and  hazardous  substances)  policy  development, case
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development and review. It will also provide support for field investigations and inspections for
the Spills and Spill Control Countermeasure (SPCC) compliance program.

LUST/UST (LUSTportion only)

       In controlling 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, the Agency will work with states, Tribes  and Intertribal
Consortia  to leave the land better protected through a one cleanup  program approach.   The
Leaking Underground  Storage Tanks (LUST) program promotes rapid and effective responses to
releases from Federally-regulated underground storage tanks (USTs) containing petroleum by
enhancing state, local,  and Tribal enforcement and response capability. To this end, by FY 2008,
EPA intends to clean up and reduce the backlog of approximately 136,000 confirmed releases for
which cleanups have not been completed by 50  percent.  EPA will continue to work with the
states to strive for approximately 18,000 — 23,000 cleanups completed each year, thus reducing
the backlog.

       The Agency's   LUST program  provides support  for  the oversight and  cleanup of
petroleum releases from USTs, using LUST funds where  owners and operators are unknown,
unwilling, or unable to take corrective actions themselves.  States may also oversee and enforce
responsible party cleanups and cost recover from responsible parties who are unwilling to pay for
cleanups.

       In FY 2005, EPA's LUST Program priorities continue to focus on accelerating cleanups;
addressing contamination  from oxygenates; and  promoting the  continued use,  reuse (i.e.,
revitalization), and long-term management of LUST sites. EPA will continue working with state
UST programs to accelerate the pace of cleanups by measuring and evaluating performance and
with other cleanup programs  to streamline the remediation process, and promoting innovative
approaches to corrective action.  EPA  is helping to address groundwater and drinking water
contamination from oxygenates by supporting information exchange, research, and field pilots
that  provide  a better  understanding  of the  nature,  scope, and best  remedial approaches to
contamination from oxygenates. EPA will continue promoting the use and reuse of LUST sites
by developing partnerships and incentives, sharing experiences and lessons learned, fostering the
use of Brownfields grants for  petroleum-contaminated sites, devising ways to prioritize sites for
reuse, identifying how to improve the long-term  management of LUST sites, and continuing to
measure program performance. In FY 2005, EPA will continue to improve methods of tracking
and analyzing LUST  program performance, e.g., projecting cleanup  goals, analyzing trends,
looking at new  and  existing performance measures and their  definitions, and developing
diagnostic tools to help EPA and state managers improve strategies for expediting cleanups. EPA
will continue working  with states to improve performance reporting and tracking.

       As part of the Agency's One Cleanup Program Initiative, EPA will continue to coordinate
cleanup efforts among the Agency's solid waste remediation programs to ensure more consistent
and effective cleanups, provide clear and more  useful information about cleanups, and apply
better performance measures to cleanup  programs. In FY 2005, EPA will continue coordinating
with Agency task forces on groundwater cleanup, site assessment decision-making,  and long-
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term  site stewardship to support this  Initiative.   LUST  program-specific projects  include
developing information about long-term site management  and a strategy for evaluating the
impact of vapor intrusion at LUST sites. Concerns about the use of fuel oxygenates (e.g., methyl-
tertiary-butyl-ether, or  MTBE)  in  gasoline further underscores  EPA's  and  the  states'
programmatic emphasis for better oversight and quicker action to reduce the costs of cleaning up
MTBE contamination, which can cost up to 100 percent more than a cleanup involving the
typical gasoline  contaminants. In turn fewer communities and individuals, including those in
Indian Country, will lose their drinking water supplies.

       EPA will continue to perform  its  oversight  responsibilities, strengthen partnerships
among stakeholders, and provide technical  assistance and training to improve and expedite
corrective action at LUST sites. To help state and EPA regulators respond to releases and sites
in a proactive manner, EPA will continue to provide a LUST web-based training module that
addresses topics such  as basic hydrogeology, source control, sampling techniques, remediation
technologies, and performance monitoring. The LUST module is one element of a national UST
training effort initiated in FY 2003 by a state, and EPA work group.  In FY 2005, EPA will also
identify and foster the implementation  of innovative approaches,  such as multi-site cleanup
agreements with states  and states' use of performance-based contracting to  achieve LUST
program objectives, and evaluations to optimize remediation at difficult LUST sites. UST owners
and operators undertake nearly all cleanups under the supervision of state or local agencies.

       The Agency has the primary responsibility for implementing the LUST program in Indian
country.  A portion of the LUST resources is used to implement the LUST program in Indian
country, including but not limited to cleanup  activities and enforcement. In FY 2005, EPA will
continue  to provide support  in Indian  Country  to educate owners and operators  about the
requirements for  addressing  leaking  USTs; oversee  and conduct site  assessments, site
investigations, and remediation, in part, through a national LUST contract designed specifically
for Indian Country;  enforce against  responsible parties; perform cleanup  of  soil and/or
groundwater; provide alternate water supplies  and  cost recovery  against  UST owners and
operators in Indian Country;  provide technical expertise and assistance by utilizing in-house
personnel, contractors and grants/cooperative agreements to Tribal  entities using Public Law
105-276 and to non-state entities using RCRA 8001; conduct response activities in very limited
circumstances;  oversee   responsible party  lead  cleanups  in  Indian Country; and, provide
direction, support and assistance to Tribal governments as well as negotiate and monitor then-
cooperative  agreements.   The Agency  estimates that cleaning up  all known and  yet-to-be-
discovered releases in Indian Country will take several years.

LUST Cooperative Agreements

       The LUST program promotes rapid and  effective  responses to  releases from USTs
containing petroleum by enhancing state, local and Tribal enforcement and response capability.
Most  of EPA's LUST appropriation is provided to 56 states and territories through cooperative
agreements. These states have the authority to respond to respond  to petroleum releases from
USTs using LUST funds where owners and operators are unknown, unwilling, or unable to take
corrective actions themselves. States may also oversee and enforce responsible party cleanups
and cost recover from responsible parties who are  unwilling to pay for cleanups.  To this end, by
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FY 2008, EPA intends to clean up and reduce the backlog of approximately 136,000 confirmed
releases for which cleanups have not been completed by 50 percent.  EPA will continue to work
with the states to strive for approximately 18,000 - 23,000 cleanups completed each year, thus
reducing the backlog,

       As part of the FY 2005 budget cycle, the Office of Management and Budget  (OMB)
evaluated the  updated LUST  program analysis, originally conducted in FY 2004 using the
Performance Assessment Rating Tool (PART). OMB gave the program a rating of "Results Not
Demonstrated," and indicated that the LUST program has a clear purpose but lacks adequate
strategic planning and needs to set goals that are adequately ambitious and show clear human
health or environmental outcomes.   In response to these findings, EPA has  undertaken new
analyses to refine its targets and to test the link between the activities of the program, notably
cleanups, and the impact on human health and environmental outcomes achieved.

RCRA: Corrective Action

       For decades, many industrial facilities  in  this country mismanaged  their hazardous
wastes. The Superfund program addresses some of these facilities, particularly those that have
been  abandoned or closed.  A significantly larger number, however, fall under the Resource
Conservation  and  Recovery Act  (RCRA) Corrective  Action program that EPA and the
authorized  states administer.  Currently,  thirty-nine states and territories  are  authorized to
implement the corrective action program.  The program covers some of the most intractable and
controversial cleanup  projects  in the country.  Over 3,500 industrial facilities must undergo a
cleanup under the RCRA program.  Out of these facilities, the Agency has targeted over 1,700
facilities as high priority - where people or the environment is likely to be at significant current
or future risk.   The Agency is pursuing a strategy for addressing the worst facilities first, as
reflected in the Agency's annual performance goal.  This focus on near-term actions has resulted
in over 1,200  facilities achieving the Current Human Exposures Under Control environmental
indicator goal and over  1,000 facilities achieving the Migration of Contaminated Groundwater
Under Control environmental indicator goal.

       Over the past  several years, the  Agency has  been  successful  hi  implementing
administrative reforms that streamlined the corrective action program and improved  overall
implementation.  The reforms  have been effective in changing the way program implementors
and stakeholders interact, which has had a positive impact on  moving facilities toward cleanup
goals. Given the many challenges of meeting the environmental indicator targets for controlling
human exposures and toxic releases to  groundwater, looking toward  final  cleanup, taking
advantage of redevelopment opportunities, and cleaning up Federal facilities, mahitahiing strong
partnerships with all relevant stakeholders will continue to be a priority for the program hi FY
2005.

       Despite the progress made, challenges still  face the program, including the extent and
severity of the groundwater contamination, complex technical  and associated policy issues, and
the expense  of groundwater cleanups. Also, many of the high priority facilities that have not yet
met the environmental indicator goals are extremely large and complicated sites that may not
make progress in cleanups  at the same pace as those facilities that have already met the goals.
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Furthermore, ongoing  work  which  began in FY  2002 has  continued to demonstrate that
contamination hi groundwater can be a threat to people in ways beyond impacts to their drinking
water supplies.  These issues, as well as others related to defining "completion" of cleanup and
implementing institutional controls, continue to surface during stakeholder meetings EPA hosted
across the country.  EPA will continue working in partnership with the stakeholders to further
address these issues.

      In FY 2005, the Agency will place added emphasis and resources on providing technical
assistance to facilities still working toward FY 2005 indicator goals and on moving facilities
toward final cleanup.  To do so, the Agency will work in partnership with the authorized states
and the regulated community to  resolve policy and technical issues, such as those associated with
setting subsequent and  final  cleanup  goals for  groundwater, indoor  air exposures, and
groundwater-to-surface water pathways.  Since there is  not a one-size-fits-all  approach  to
cleanups, working partnerships  will allow all parties to fully explore flexible, common sense
approaches.

      In support of the revitalization theme, the Agency will work in partnership with  states to
finalize development of a Revitalization Work Plan.  There are many important revitalization
activities the Agency will undertake including:  piloting an approach of  clustering sites and
issues; supporting RCRA facilities  in the next round of Brownfields grants; participation hi the
development of institutional  control tracking and  a  "sites  in  my community" data  system;
analysis of liability issues for municipalities and lenders; and, development of reports on acres
made available for reuse as a result of cleanup.

      In FY 2005, the Agency will devote special attention to Federal facilities being cleaned
up under RCRA authorities.  The  Agency and the authorized  states have  worked with EPA's
Federal partners to more effectively communicate cleanup goals and facilitate Federal facilities'
cleanups.  For example, the  Agency will foster dialogue with the authorized states  and the
Federal  facility community to  explore such topics  as innovative approaches to cleanups and
regulatory flexibility.  Lessons  learned through programs hi  other industries will be applied to
Federal facilities, leading to greater efficiencies hi cleanups.

      Training and outreach are integral parts of the corrective action program's activities. The
way program implementors and the regulated community do business, and the way hi which the
public participates hi the cleanup decisions  made in their  communities  has  been positively
influenced through the reforms.   The  Agency  will  build on  its  successes, further  promote
flexibility hi program implementation and continue to encourage more frequent communications
among all parties.

Categorical Grant: Hazardous Waste Financial Assistance

       The  RCRA statute authorizes EPA to assist state governments hi the development and
implementation of an  authorized hazardous waste management program for the purpose of
controlling the generation, transportation, treatment, storage  and disposal of hazardous wastes.
The states  (both those authorized for corrective action and those not authorized for corrective
action through  work sharing agreements with their regions) are the  primary implementers of
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corrective action, although regional staff are also the lead on a significant number of facilities
undergoing corrective action. This account also provides funding for the direct implementation
of the RCRA program by Region 7 and 10 for the states of Iowa and Alaska, respectively.

       In FY 2005, the following are activities which will be accomplished using categorical
grants:
             •   Assessments of RCRA facilities statutorily required to conduct CA and those
                 subject to CA
             •   Investigations of RCRA facilities where CA has been imposed
             •   Implementation of stabilization measures
             •   Determination if  Human  Exposures  and  Groundwater   Releases  are
                 "controlled"
             •   Selection  of Final Remedy, Implementation  of Final Remedy and  if the
                 objectives of Final Remedies have been met

       OMB evaluated the RCRA Corrective Action Program using their Program Assessment
Rating Tool (PART) during the FY 2005  budget cycle.  OMB gave the program a rating of
adequate, and indicated that the program is well  designed in that it puts decision-making
authority close to the actual cleanup activity while still  ensuring a certain amount of oversight
and consistency in protecting human health and the environment. In addition, the program has
established acceptable long-term and annual outcome performance measures that tie directly to
program activities and focus on protecting  human  health.  However, OMB noted that the goals
are no longer as ambitious as they were when first established and that new baselines and targets
are  needed  for  the  measures to continue to  be useful  in tracking  and guiding program
performance.

       In response to OMB's comments,  EPA is working with the states to establish  a new
baseline for performance measures and set  appropriate new annual targets reflecting more
ambitious long-term goals,  hi addition to  efforts  to develop land revitalization measures  and
efficiency measures.

Homeland Security: Preparedness, Response, and Recovery

       Responding to small and large-scale disasters is one of EPA's traditional responsibilities.
The Agency's crucial role hi responding to the World Trade  Center and Pentagon attacks, the
decontamination of anthrax in a U.S. Senate office building, and the response to the Columbia
shuttle disaster have further defined the nation's  expectations of EPA's emergency response
capabilities. The Agency will continue to play a unique role hi responding to and preparing for
future terrorist incidents.  In FY 2005,  EPA will continue to improve  the  capabilities  of the
regional response programs, On-Scene Coordinators (OSCs),  and the Environmental Response
Team (ERT) through unproved state-of-the-art equipment and expertise, increased training and
exercises, and additional field experience.

       The Agency will continue efforts begun in FY 2004 to set up a National Decontamination
Team with plans to become  fully operational in FY 2005.  Efforts  will focus on improving the
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Agency's specialized capabilities to address chemical and biological agents of concern, in both
environmental and building contamination situations.

       The Department of Homeland Security (DHS) is leading the development of a National
Response Plan (NRP) in accordance with the Homeland Security Presidential  Document - 5
(HSPD-5),  "Management of Domestic Incidents,"  issued  in  February 2003. The NRP is
structured based on the awareness, prevention, preparedness, response, and recovery aspects to
these incidents.  EPA and other member agencies of the NRT are participating in this NRP
development, as well as the development of guidance for the new National Incident Management
System (NIMS) that will implement the NRP.  The NIMS workgroups are addressing: command
and incident management; resource management; science and technology; system preparedness;
and, communication and information  management.  This  effort is attempting to meet the
requirements of HSPD-5, especially in the context of September 11 and other terrorist threats,
while ensuring that existing authorities and  response support systems (such as the National
Response System, the National Contingency Plan, and the Federal  Response Plan) are currently
available and incorporated as appropriate.

Oil Spill: Prevention and Preparedness

       The goal of the oil spill program is to protect public health and the environment from
hazards associated with a discharge or substantial threat of a discharge of oil  into navigable
waters, adjoining shorelines, and exclusive economic zones of the United States.  Based on data
obtained from the National Response Center, each year more than  24,000 oil spills occur in the
United States, over half of them within the inland zone over which EPA has jurisdiction.  On
average, one spill of greater than  100,000 gallons occurs every month from EPA-regulated oil
storage facilities and the oil transportation network.  Oil spills  contaminate drinking water
supplies; cause fires and explosions; kill fish, birds, and other wildlife; destroy habitats and
ecosystems; and impact the food chain. There are also  serious economic consequences of oil
spills because of their impact  on commercial and recreational uses of water resources  and
cleanup costs.

       The oil spill program prevents,  prepares for, responds to, and monitors oil spills.  EPA
protects  U.S. waters through oil  spill prevention, preparedness, and enforcement activities
associated  with the 415,000 non-transportation-related  oil storage facilities EPA regulates
through its spill prevention program. In addition to its prevention responsibilities, EPA serves as
the lead responder for the inland zone for all spills,  including non-transportation-related spills
from pipelines, trucks, and  other  transportation  systems (regulated by  the Department of
Transportation). EPA accesses the Oil Spill  Liability Trust Fund, administered by the United
States Coast Guard, to obtain reimbursement for site-specific spill response activities.

       The oil spill program establishes requirements to prevent and prepare for spills at oil
storage facilities subject  to  its regulations.   The Oil and Hazardous Substances National
Contingency Plan (NCP) is the nation's blueprint for the Federal  response to  discharges of oil
and  hazardous substances.   The Spill Prevention, Control, and Countermeasures  (SPCC)
regulation and the Facility Response Plan (FRP) regulation chiefly compose EPA's oil program
regulatory framework.  The oil spill program is also responsible for publishing the National
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Product Schedule and subpart J of the NCP, which is a listing of dispersants, other chemicals,
and other spill mitigating agents that may be used during response to oil discharges.

       All regulated oil storage facilities must prepare  SPCC plans. These facilities range from
commercial, manufacturing, or other enterprises using or storing oil to large tank farms; any
facility  with an  aggregate  aboveground storage capacity greater  than 1,320  gallons, or
completely buried storage greater than 42,000 gallons (not otherwise subject to the UST program
requirements) is regulated under the SPCC rule. EPA's field inspections and SPCC plan reviews
have as their goal unproved compliance with spill prevention requirements by the  regulated
community.

       In addition, large oil storage facilities and refineries must prepare FRPs to identify and
ensure the availability of resources to be prepared and  ready to  respond to a worst case
discharge, establish communication, address security,  identify an individual with authority to
implement removal actions, and describe training and testing drills at the facility.  In  FY 2005,
EPA will conduct inspections, and review/approve plans at any of the approximately 6,000 FRP
facilities with a  continued  emphasis  on emergency preparedness  unannounced drills  and
exercises to ensure facilities and responders can effectively implement response plans,  including
responses to terrorist incidents.

       EPA will continue the enhancement of the existing National Preparedness for  Response
Exercise Program (PREP), with emphasis on area and  regional planning. EPA will continue to
develop and modify area and regional contingency plans (ACPs, RCPs), in conjunction with area
committees (state,  local and Federal officials in a given geographic location). The ACPs detail
the responsibilities of various parties in the event of a spill/release; describe unique geographical
features, sensitive  ecological resources, and drinking water intakes for the area covered, and
identify available response equipment and its location. EPA conducts a small number of ACP
exercises each year to evaluate and strengthen the plans.

FY 2005 CHANGE FROM FY 2004 REQUEST

EPM

    •   (+611,800) Internal decisions to  centralize LAN funding and provide support to the Land
       Revitalization have resulted in an increase to the RCRA: Corrective Action program.

Superfund

    •   (- $6,501,300)  The decrease to the Superfund:  Remedial program primarily reflects
       recent  organizational  changes.  OSWER  has consolidated response  and  removal
       responsibilities  within  the new Office  of Emergency  Prevention, Preparedness and
       Response (OEPPR). The decrease in funds for the Superfund Remedial program reflects
       the new focus and responsibilities of OSRTI.
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   •   (+$1,284,100)   Adjustments  in resources  available  to  the Superfund:  Emergency
       Response and  Removal program reflect recent organizational changes within EPA in
       response to its new responsibilities in the area of homeland security.

   •   (-$562,200) Adjustments in resources available to the Superfund:  Federal  Facilities
       program reflect  recent  organizational changes within  EPA in response  to  its new
       responsibilities in the area of homeland security.

   •   (+6.0 FTE) FTE, previously allocated to the Base Realignment and Closure (BRAC)
       program, have been primarily redirected to meet additional EPA responsibilities under
       the Superfund EPA Emergency Preparedness program.  Five of the redirected FTE will
       support  efforts to ensure the readiness  of EPA  personnel, coordinate the National
       Response Team  and Regional Response Team efforts, and  work with other Federal
       agencies to respond effectively and consistently to nationally significant events.  The
       other FTE will be devoted to Superfund Remedial program efforts.

   •   (-$1,000,000),  Reduces funds provided to  the Department  of Justice for CERCLA
       litigation support.

   •   (+$340,200), Technical adjustment made from forensics support under goal 5, objective 4
       to support the various programs under goals 3 and 5.

   •   (+$1,700,000 SF)   These Regional resources support  the full  array  of financial
       management support services necessary to pay Superfund bills and recoup cleanup and
       oversight costs for the trust fund.

   •   (+$ 1,791,000) The increase in non-payroll resources will be used to further efforts hi FY
       2005 to modernize major Agency financial systems.  The modernization will provide
       decision-makers throughout the Agency with  integrated  budget cost and performance
       information and timely and reliable  financial information and reports to improve
       accountability, decision-making  and program management. FY 2005 efforts will focus
       on significant upgrades to the Agency's budget and planning systems, new system
       integration  capabilities and continued progress in replacing EPA's  integrated
       financial management system scheduled for implementation in FY 2007, and further
       developing desk-top access to key cost accounting and performance information.
ANNUAL PERFORMANCE GOALS AND MEASURES

Prepare for and Respond to Accidental and Intentional Releases

In 2005    Reduce and control the risks posed by accidental and intentional releases of harmful substances by
          improving our Nation's capability to prepare for and respond more effectively to these emergencies.

In 2004    Reduce and control the risks posed by accidental and intentional releases of harmful substances by
          improving our Nation's capability to prepare for and respond more effectively to these emergencies.
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In 2003     EPA responded to  or  monitored 322  significant oil  spills  in  the  inland  zone and  Superfund
            accomplished 380 removal response actions.
Performance Measures:

Number of Superfund removal response actions
initiated.

Oil spills responded to or monitored by EPA.

Number of inspections and exercises conducted
at oil storage facilities that are required to have
Facility Response Plans.

Percentage of emergency response and homeland
security readiness improvement.
FY2003
Actuals
     380


     322
   82.3%
    FY2004
    Pres. Bud.
         350


         300
         10%
      FY2005
      Pres. Bud.
          350


          300

          360
         10%
    removals
    spills

    inspections/
    exercises
                                            percent
Baseline:    Through FY2003, Superfund had initiated  approximately 7,900 removal response actions.    EPA
            typically responds to or monitors 300 oil  spill cleanups per year.   In FY2003, EPA completed
            evaluations of core emergency response capabilities in each region, and the average score from these
            was 823 out of a possible 1,000 points so  82.3 percent is used as the baseline for improvements.
            Between FY 1997 and FY 2003, approximately 31 percent (or 1,862) of the nearly 6,000 oil storage
            facilities required to have Facility Response Plans were inspected.

Assess and Cleanup Contaminated Land

In 2005     Control the risks to  human health and the environment at contaminated properties or sites through
            cleanup, stabilization, or other action, and make land available for reuse.

In 2004     Control the risks to  human health and the environment at contaminated properties or sites through
            cleanup, stabilization, or other action, and make land available for reuse.

In 2003     Superfund made 917 final site assessment  decisions,  controlled  human exposures at 28 sites and
            groundwater migration at 54 sites, and achieved 40 construction completions.  The RCRA program
            controlled  human exposures at 230 sites and groundwater migration at 175 sites. There were 18,518
            LUST cleanups.
Performance Measures:

Number  of  Superfund final  site  assessment
decisions.

Number of Superfund construction completions.

Number of Superfund hazardous waste sites with
human exposures controlled.

Number  of  Superfund hazardous waste sites
with groundwater migration controlled.

Number  of  final  remedies  (cleanup  targets)
selected at Superfund sites.

Number  of leaking  underground storage tank
cleanups completed.

Number  of high priority RCRA facilities with
human exposures to toxins controlled.
FY2003
Actuals
   917


   40

   28


   54
  18,518
   230
FY2004
Pres. Bud.
    475


     40

     10


     10


     20


   21,000


     166
FY2005
Pres. Bud.
    500


    40

     10
assessments


completions

sites
10
20
21,000
225
sites
remedies
cleanups
facilities
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Performance Measures:                        FY2003  FY2004      FY2005
                                              Actuals   Pres. Bud.    Pres. Bud.
Number of high priority RCRA facilities  with      175          129          203         facilities
toxic releases to groundwater controlled.
Baseline:    By the end  of FY 2003, Superfund  had initiated approximately 7,900 removal response actions,
            controlled human exposures at 82% (1,227 of 1,494) of eligible NPL sites and controlled groundwater
            migration at 65% (826 of 1,275) of eligible NPL sites, and completed construction at 58% (886) of the
            NPL sites.  Of the 1,714 RCRA Corrective Action high priority facilities, 73% (1,246) have human
            exposures controlled, an increase from 1,018 facilities with human exposures controlled at the end of
            FY 2002; and 61% (1,049) have groundwater migration controlled, an increase from 877 facilities with
            groundwater migration controlled at the end of FY 2002. Furthermore, at the end of FY 2001 there
            were  814 facilities with human  exposures controlled and 737 facilities groundwater migration
            controlled reflecting the strong EPA/state partnership in this program. At the end of FY 2003, 303,120
            cleanups  of confirmed  releases  from Federally-regulated leaking underground storage tanks were
            completed since 1987. At the end of FY 2002, there was a universe of 1,103 Superfund sites with final
            remedies  selected. The Agency is currently evaluating this baseline and may adjust it downward in the
            future.
Superfund Cost Recovery

In 2005     Ensure trust fund stewardship by getting PRPs to initiate or fund the work and recover costs from
            PRPs when EPA expends trust fund monies. Address cost recovery at all NPL and non-NPL sites with
            a statute of limitations (SOL) on total past costs equal to or greater than $200,000.

In 2004     Ensure trust fund stewardship by getting PRPs to initiate or fund the work and recover costs from
            PRPs when EPA expends trust fund monies. Address cost recovery at all NPL and non-NPL sites with
            a statute of limitations (SOL) on total past costs equal to or greater than $200,000.

In 2003     Ensured trust fund stewardship by getting PRPs to initiate or fund the work and recover costs from
            PRPs when EPA expends trust fund monies. Addressed cost recovery at all NPL and non-NPL sites
            with a statute of limitations (SOL) on total past costs equal to or greater than $200,000.

Performance Measures:                       FY2003    FY2004      FY2005
                                              Actuals     Pres. Bud.    Pres. Bud.
Refer to DO J, settle, or write off 100% of Statute      100          100           100         Percent
of Limitations (SOLs) cases  for SF sites  with
total unaddressed past costs equal to or greater
than  $200,000  and  report  value of costs
recovered.
Baseline:    In FY 98 the Agency addressed 100 percent of cost recovery at all NPL & non-NPL sites with total
            past costs equal or greater than $200,000.


Superfund Potentially Responsible Party Participation

In 2005     Reach a settlement or take an enforcement action before the start of a remedial action at 90 percent of
            Superfund sites having a viable, liable responsible party other than the federal government.

In 2004     Reach a settlement or take an enforcement action before the start of a remedial action at 90 percent of
            Superfund sites having a viable, liable responsible party other than the federal government.
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In 2003    Maximized all aspects of PRP participation which included maintaining PRP work at 87% of the new
          remedial  construction starts at non-Federal Facility Superfund, and emphasized fairness  in the
          settlement process.

Performance Measures:                    FY2003   FY2004    FY
                                       Actuals    Pres.      2005
                                                Bud.      Pres.
                                                          Bud.
PRPs  conduct 70%  of the work  at new    87                       Percent
construction starts

Percentage  of  Superfund   sites  at  which              90        90     Percent
settlement or enforcement action taken before
the start of RA.
Baseline:   In FY 98 approximately 70% of new remedial work at NPL sites (excluding Federal facilities) was
          initiated by private parties.  In FY2003, a settlement was reached or an enforcement action was taken
          with  non-Federal PRPs before the  start of the remedial action at approximately 90 percent of
          Superfund sites.
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measures;

•   Number of final Superfund site assessment decisions.
•   Number of Superfund hazardous waste sites with human exposures controlled.
•   Number of Superfund hazardous waste sites with groundwater migration controlled.
•   Number of final remedies (cleanup targets) selected at Superfund sites.
•   Number of Superfund construction completions.
•   Number of Superfund removal response actions initiated.

Performance Database:  The  Comprehensive Environmental Response, Compensation,  and
Liability System  (CERCLIS) is the database  used by the Agency to track,  store, and report
Superfund site information.

Data Source: CERCLIS is an automated EPA system; headquarters and EPA's Regional offices
enter data into CERCLIS on a rolling basis.

Methods, Assumptions and Suitability:  Each performance  measure is  a  specific  variable
within CERCLIS.

QA/QC Procedures:  To ensure data accuracy and control, the following administrative controls
are in place:   1) Superfund Implementation Manual (SPIM),  the program management manual
that details what data  must be reported; 2) Report Specifications, which are published  for each
report  detailing how reported data are calculated; 3) Coding Guide, which contains technical
instructions to such data users as  Regional  Information Management Coordinators  (IMCs),
program personnel, report owners, and data input personnel; 4) Quality Assurance (QA) Unit
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Testing, an extensive QA check against report specifications; 5) Regional CERCLIS Data Entry
Internal Control Plan, which includes: (a) regional policies and procedures for entering data into
CERCLIS; (b) a review process to ensure that all Superfund accomplishments are supported by
source documentation; (c) delegation of authorities for approval of data input into CERCLIS;
and (d) procedures to ensure that reported accomplishments  meet accomplishment definitions;
and (6) a historical lockout feature has been added to CERCLIS  so that changes in past fiscal
year data can be changed only by approved and designated personnel and are logged to a change-
log report.

CERCLIS 3/WasteLAN operation and further development is taking place under the following
administrative control quality assurance procedures: 1) OIRM Life Cycle Guidance; 2) OSRTI
Quality Management Plan; 3) Agency platform, software and hardware standards (NTSD); 4)
Quality Assurance Requirements in all contract vehicles under which CERCLIS 3/WasteLAN is
being developed and maintained; and 5) Agency  security procedures.  In addition, specific
controls are in  place  for system design,  data  conversion and data capture, and CERCLIS
3/WasteLAN outputs.

Data Quality Reviews: Two audits, one by the Office Inspector General (OIG) and the other by
General Accounting Office (GAO), were done to assess the  validity of the data in CERCLIS.
The OIG audit report,  Superfund Construction Completion Reporting (No.  E1SGF7_05_0102_
8100030), dated December 30, 1997, was prepared to verify the accuracy of the information that
the Agency was providing  to Congress and the public. The  OIG report  concluded that the
Agency "has good management controls to ensure accuracy of the information that is reported,"
and  "Congress  and  the  public can rely upon the information EPA  provides  regarding
construction  completions."     Further  information  on  this  report  are  available  at
http://www.epa.gQV/Qigearth/eroQm.htm.   The GAO's report, Superfund Information on the
Status of Sites  (GAO/RECD-98-241), dated August 28, 1998,  was prepared  to verify the
accuracy of the  information in CERCLIS on sites' cleanup progress.  The report estimates that
the cleanup status of National Priority List sites reported by CERCLIS as of September 30, 1997,
is  accurate for 95 percent of the sites.  Additional information on the  Status of Sites may be
obtained by visiting  http://www.gao. gov.    Another OIG  audit, Information  Technology -
Comprehensive  Environmental Response,  Compensation, and Liability Information System
(CERCLIS) Data Quality (Report No. 2002-P-00016), dated September 30,  2002, evaluated the
accuracy, completeness, timeliness, and  consistency of the data entered into CERCLIS.  The
weaknesses identified  were caused by the lack  of an effective quality assurance process and
adequate internal controls for CERCLIS data quality.  The report provided 11 recommendations
to improve controls for CERCLIS data  quality.  OSWER concurs with the recommendations
contained in the audit, and many of the identified problems have been corrected or actions that
would address these recommendations are underway. Additional information about this report is
available at http://www.epa.gov/oigearth/eroom.htm.

The   IG  reviews annually the  end-of-year  Comprehensive  Environmental  Response,
Compensation, and Liability Act (CERCLA) data, in an informal process, to verify the data
supporting the performance measures. Typically, there are no published results.
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The Quality Management Plan (QMP) for the Office of Solid Waste and Emergency Response
(OSWER) is currently under review by the Office of Environmental Information.

Data  Limitations: Weaknesses were identified hi  the OIG audit, Information  Technology -
Comprehensive Environmental Response,  Compensation, and Liability Information System
(CERCLIS) Data Quality (Report No.  2002-P-00016), dated  September 30, 2002.   The
weaknesses identified were caused by the  lack of an effective quality  assurance process and
adequate  internal  controls  over CERCLIS   data  quality.    The  report   provided   11
recommendations with which OSWER concurs.  Many  of the identified problems have been
corrected or actions that would address these recommendations are underway, e.g., 1) FY 02/03
SPIM Chapter 2 update was made to better define the  Headquarters and Regional roles and
responsibilities  for maintaining planning  and  accomplishment  data in CERCLIS; 2) draft
guidance from OCA  (Other Cleanup Activity) subgroup, which outlines the conditions under
which sites are taken  back from states when states have the lead but are not performing  and 3)
Pre-CERCLIS Screening: A Data Entry Guide, which provides guidance to the regions for
preventing entry of duplicate sites in CERCLIS. The development and implementation of a
quality assurance process for CERCLIS data has begun.  This process includes delineating
quality assurance responsibilities  in  the program  office and periodically  selecting random
samples of CERCLIS data points to check against source documents in site files.

Error Estimate:   The  GAO's  report,  "Superfund Information on  the Status of Sites"
(GAO/RECD-98-241), dated August 28, 1998, estimates that the cleanup status of National
Priority List sites reported by CERCLIS is accurate for 95 percent of the sites.

New/Improved Data or Systems:  A CERCLIS modernization effort is currently underway to
enhance CERCLIS, with a focus on data collection and data analysis and how to best satisfy the
current needs of the Superfund program.  Among other initiatives, this  effort includes reviewing
current and anticipated data needs.  Items  in CERCLIS that are no longer needed will be deleted,
and new items identified will be added. Strict standards for quality will be enforced. During FY
2004, the CERCLIS database will be made  Intranet accessible, and perhaps, Internet accessible,
using CITRIX.  This will make it easier to access the  database and will simplify the SNAPSHOT
process.  This change will improve database reliability since there will no longer be 10 separate
CERCLIS installations on servers  maintained by regional IRM shops.  The Superfund eFacts
system is a vital part of the CERCLIS modernization efforts.  The Superfund eFacts system is an
e-Government solution design to  give EPA management and staff quick and easy access to
important milestones  relating to various aspects of the Superfund program. In 2005, the Agency
will continue  its efforts begun in 1999 to improve the Superfund program's technical information
by increasing reliance upon CERCLIS support data systems, which incorporate more site remedy
selection,  risk, removal response,  and community involvement information.  Efforts to share
information among the Federal, state, and Tribal programs to further  enhance  the Agency's
efforts to efficiently  identify, evaluate, and remediate Superfund hazardous waste sites will
continue.  In  2005, the Agency will also  establish data quality objectives for program planning
purposes  and to formulate  the  organization's  information  needs  for the next  5 years.
Adjustments will be made to EPA's current architecture and business processes to better meet
those needs.
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References:  References  include  OIG audit reports, Superfund  Construction  Completion
Reporting, (No. E1SGF7_05_0102_ 8100030) and Information Technology - Comprehensive FY
2005 Performance Measures Environmental Response, Compensation, and Liability Information
System (CERCLIS) Data Quality, (No. 2002-P-00016), http://www.epa.gov/oigearth/eroom.htm:
and the GAO report, Superfund Information on the Status  of Sites (GAO/RECD-98-241),
http.://www.ga,Q,gQy.  Other references  include the Superfund/Oil Implementation Manuals for
the fiscal years 1987 to the current manual, the Annual Performance Report to Congress, and the
Office of Superfund Remediation and  Technology  Innovation's  Information  Management
Center"   Quality  Assurance Procedures for the  Official Superfund  Data Base, CERCLIS
3/WasteLAN.

FY 2005 Performance Measures

   *  Number of leaking underground storage tank cleanups completed.

Performance Database: The Office of Underground Storage Tanks (OUST) does not maintain a
national database; the states maintain their respective databases and/or spreadsheets.

Data  Source: Designated state agencies  submit semi-annual progress reports to the EPA's
Regional offices.

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: States submit their performance on an EPA-supplied form for review
against national trends  and historical data.  Previously reported percentages and/or totals are
compared to current values and states are notified of any discrepancies and/or anomalies.

Data  Quality Review: EPA resolves any discrepancies and/or anomalies in the reported
information through written explanations and/or justifications from the states arid discussions.

Data  Limitations: Percentages  reported are sometimes based on estimates and extrapolations
from sample data. The quality of the states'  data depends on the completeness and accuracy of
states' internal recordkeeping.

Error Estimate: Not calculated.   •

New/Improved Data or Systems:  None.

References: FY 2003 Mid-Year Activity Report, June 19, 2003 (updated semi-annually)

FY 2005 Performance Measures:

   •   High priority RCRA facilities with human exposures to toxins controlled
   •   High priority RCRA facilities with toxic releases to groundwater controlled

Performance Database:   The Resource Conservation  Recovery Act Information System
(RCRAInfo) is the national database which supports EPA's RCRA program.
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Data Source: Data are entered by the States. A "yes" or "no" entry is made in the database
with respect to meeting corrective action indicators.  Supporting documentation and reference
materials are maintained in Regional  and state files.  EPA's Regional offices and authorized
states enter data on a rolling basis.

Methods, Assumptions and Suitability:  RCRAInfo has several different modules, including a
Corrective  Action Module that tracks the status  of facilities that require,  or may  require,
corrective actions.  RCRAInfo contains  information on entities (genetically referred  to  as
"handlers") engaged hi hazardous waste (HW) generation and management activities regulated
under the portion of RCRA that provides for regulation of hazardous waste.  Human exposures
controlled and toxic releases to groundwater controlled are used to summarize and report on the
facility-wide  environmental conditions  at the RCRA  Corrective  Action Program's highest
priority facilities. The environmental indicators are used to track the RCRA program's progress
in getting highest priority contaminated  sites under control.   Known and suspected sitewide
conditions are evaluated using a series of simple questions  and flow-chart logic to arrive at a
reasonable, defensible determination. These questions were issued as a memorandum titled:
Interim Final Guidance for RCRA Corrective Action Environmental Indicators, Office of Solid
Waste, February 5, 1999).  Lead regulators  for the site (authorized state or EPA) make the
environmental indicator determination; however, facilities or their consultants may assist EPA in
the evaluation by providing information on the current environmental conditions.

QA/QC Procedures:  States and Regions generate the data and manage data quality related to
timeliness and accuracy (i.e.,  the environmental conditions and determinations  are  correctly
reflected by the  data).  Within RCRAInfo, the application software enforces structural controls
that ensure that high-priority national components of the data are properly entered.  RCRAInfo
documentation,  which is  available to all users on-line, provides guidance  to  facilitate the
generation and interpretation of data.  Training on use of RCRAInfo is provided on a regular
basis, usually annually, depending on the nature of systems changes and user needs.

Note: Access to RCRAInfo is open only to EPA Headquarters, Regional, and authorized State
personnel.  It is not available to the general public because the system contains enforcement
sensitive data.  The general public is referred to EPA's Envirofacts Data Warehouse to obtain
filtered information on RCRA-regulated hazardous waste sites.

Data Quality Review: GAO's  1995  Report on EPAs  Hazardous  Waste Information System
(http://frwebgate.access.gpo.gov/) reviewed whether national  RCRA information systems support
EPA and the  states in managing their hazardous waste programs.

Data Limitations: No data limitations have been identified.  As discussed above, environmental
indicator determinations are made by the authorized states and EPA Regions based on a series of
standard questions and entered directly into RCRAInfo. EPA has provided guidance and training
to states and  Regions to help ensure consistency in those determinations.  High priority facilities
are monitored on a facility-by-facility basis and the QA/QC procedures identified above are in
place to help ensure data validity.
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Error Estimate: N/A.  Currently, the Office of Solid Waste does not collect data on estimated
error rates.

New/Improved Data or Systems: EPA has successfully implemented new tools for managing
environmental information to support federal and state programs, replacing the old data systems
(the  Resource Conservation and Recovery  Information System and the Biennial  Reporting
System) with RCRAInfo.  RCRAInfo allows  for tracking  of information on the regulated
universe of RCRA hazardous waste handlers, such as facility  status, regulated activities, and
compliance history. The system also captures detailed data on the generation of hazardous waste
from large quantity generators and on waste management practices by treatment,  storage, and
disposal facilities.  RCRAInfo is web-accessible, providing a convenient user interface for
federal, state and local managers, encouraging development of in-house expertise for controlled
cost, and using commercial off-the-shelf software to develop reports from database tables.

References:   GAO's 1995  Report on EPA's Hazardous Waste Information System reviewed
whether national RCRA  information systems support EPA  and the states in managing their
hazardous waste programs.    Recommendations coincide  with ongoing internal  efforts
(WIN/Informed) to improve the definitions of data collected,  ensure that data collected provide
critical information and minimize the burden on  states.  This historical document is available on
the Government Printing Office Website (http://frwebgate.access.gpo.gov/)

FY 2005 Performance Measure:

•  Percentage of emergency response and homeland security readiness improvement.

Performance Database:  No specific database has been developed. Data from evaluations are
tabulated and stored using standard software (WordPerfect, spreadsheets, etc.)

Data Source: Data are collected through detailed surveys  and interviews of personnel and
managers in each program office.   The survey instrument  was developed based upon Core
Emergency Response (ER) elements, and has been approved by EPA Headquarters and Regional
managers.

Methods, Assumptions and Suitability: The Core ER elements were developed  over the last
several years by the EPA Removal Program to identify and clarify what is needed to ensure an
excellent emergency  response program.    The  elements,  definitions,  and rationales were
developed by staff and managers and have been presented to the Administrator and other high
level Agency managers.  Based on the Core ER standards, evaluation forms and  criteria were
established for EPA's Regional programs, the Environmental  Response Team (ERT), and
Headquarters.  These evaluation criteria identify what data need to be collected, and how that
data translate into an appropriate score for each Core ER element.  The elements and evaluation
criteria will be reviewed each year for relevance to ensure that the programs have the highest
standards of excellence and that the measurement clearly reflects the level of readiness. The data
are collected from each Regional office, ERT, and Headquarters using a systematic, objective
process.  Each evaluation team consists of managers and staff, from Headquarters and from
another EPA Regional  office, with  some portion of the team involved hi all reviews for
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consistency and some portion varying to ensure independence and objectivity.  For instance, a
team evaluating Region A might include some or all of the following:  a staff person from
Headquarters who is participating hi all reviews, a staff person from Headquarters who is very
familiar with Region A activities, a manager from Headquarters, and a staff person  and/or
manager from Region B.  One staff or group will be responsible for gathering and analyzing all
the data to determine the overall score for each Regional office, ERT, and Headquarters, and for
determining an overall National score.

QA/QC Procedures: See "Methods, Assumptions and Suitability"

Data Quality Review: The evaluation team  will review the data (see Methods, Assumptions
and Suitability) during the data collection and analysis process.  Additional data review will be
conducted after the data has been analyzed to ensure that the scores are consistent with the data
and program information.  There  currently is no specific database that has been developed to
collect, store, and manage the data.

Data Limitations: One key limitation of the data is the lack of a dedicated database system to
collect and manage the data.  Standard software packages (word processing, spreadsheets) are
used to develop the evaluation criteria, collect the data, and develop the accompanying readiness
scores.

Error  Estimate: It is likely that the error estimate for this measure will be small for the
following reasons: the standards  and evaluation criteria have  been developed and reviewed
extensively by Headquarters  and EPA's Regional managers and staff; the data will be collected
by a combination  of managers and  staff to provide consistency across all reviews plus  an
important element of objectivity in each review; the scores will be developed by a team looking
across all ten Regions, ERT, and  Headquarters; and only twelve sets of data will be collected,
allowing for easier cross-checking  and ensuring better  consistency of  data analysis and
identification of data quality gaps.

New/Improved Data or Systems: There are no current plans to develop a dedicated system to
manage the data.

References: FY 2003 Core Emergency Response Report, based on Regional and Headquarters
evaluations (for internal EPA use only).

FY 2005 Performance Measures;

•  Number of inspections and exercises conducted at oil storage facilities required to have
       Facility Response Plans
•  Oil spills responded to or monitored by EPA

Performance Database:  The Comprehensive Environmental Response, Compensation, and
Liability System (CERCLIS) is the  database used by the Agency to track, store, and  report
Superfund  site information.   Historically,  oil program  performance has been reported  in
CERCLIS; a new, more streamlined reporting system is being developed hi 2004 to store oil spill
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prevention, emergency preparedness and response information.  Information included in the new
database will be similar to CERCLIS, but definitions and activities pertaining to oil will be
included to support oil spill program needs for FY 2004 and beyond.

Data Source: Automated EPA system; Headquarters and Regional offices enter data (Currently
CERCLIS, has a new system pending).

Methods,  Assumptions and Suitability:  Each performance  measure is a specific variable
within CERCLIS.

QA/QC Procedures:  N/A

Data Quality Reviews:  N/A
Data Limitations: N/A

Error Estimate: N/A

New/Improved Data or Systems: N/A

References:  The Superfund/Oil Implementation Manual, 1987.  This is being revised as part of
the development of the new database.

FY 2005 Performance Measures;

   •   Refer to DOJ, settle, or writeoff 100% of Statute of Limitations (SOLs) cases for
       Superfund sites with total unaddressed past costs equal to or greater than $200,000
       and report value of costs recovered.

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data  Source: Automated EPA system; Headquarters and EPA's Regional offices enter data into
CERCLIS

Methods,  Assumptions and Suitability:  The data used to support this measure are collected
on a fiscal year basis only. Enforcement reports are run at the end of the fiscal year, and the data
that support this measure are extracted from the report.

QA/QC Procedures:  Office of Site Remediation Enforcement (OSRE) Quality Management
Plan,  approved  April  11,  2001.    To ensure  data  accuracy  and  control,  the  following
administrative controls  are in place:   1)  Superfund/Oil Implementation Manual  (SPIM), a
program management manual that details what data must be reported; 2) Report specifications,
which are  published for each report detailing how reported data are calculated; 3) Coding Guide,
which contains technical instructions to  such data users as Regional Information Management
Coordinators (IMCs), program personnel, report owners,  and data input personnel; 4) Quality
Assurance (QA) Unit Testing, an extensive  QA check against report specifications; 5) QA Third
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Party Testing, an extensive test made by an independent QA tester to ensure that the report
produces data in conformance with the report specifications; 6) Regional CERCLIS Data Entry
Internal Control Plan, which includes:  a) regional policies and procedures for entering data into
CERCLIS, b) a review process  to ensure that all Superfund accomplishments are supported by
source documentation, c) delegation of authorities for approval of data input into CERCLIS, and,
d) procedures to ensure that reported accomplishments meet accomplishment definitions; and 7)
a historical lockout feature that  has been added to CERCLIS so that changes in past fiscal year
data can be changed only by approved and designated personnel and are logged to a change-log
report.

Data Quality Review: The IG annually reviews the end-of-year CERCLA data, in an informal
process,  to verify the data  supporting the performance measure.  Typically, there  are  no
published results.

Data Limitations: None

Error Estimate: NA

New/Improved Data or  Systems: None

References:  Office of Site Remediation Enforcement (OSRE) Quality Management Plan,
approved April 11, 2001

FY 2005 Performance Measures:

    •  Reach  a settlement or  take  an enforcement  action before the start of a remedial
       action at 90 percent of Superfund sites having viable, liable responsible parties other
       than the Federal government.

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS).

Data Source:  Automated EPA system; headquarters  and regional offices enter data into
CERCLIS

Methods, Assumptions  and Suitability:  There are no analytical or statistical methods used to
collect the information. The data used to support this measure are collected on a fiscal year basis
only. Enforcement reports are run at the end of the fiscal  year, and the data that support this
measure is extracted from the report.

QA/QC Procedures:  Office of Site Remediation  Enforcement (OSRE) Quality Management
Plan, approved April  11, 2001.   To  ensure  data accuracy and control, the following
administrative controls  are in  place:  1)  Superfund/Oil Implementation  Manual  (SPIM), a
program management manual that details what data must be reported; 2) Report Specifications,
which are published for each report detailing how reported data are calculated; 3) Coding Guide,
which contains technical instructions to such data users as Regional Information Management
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Coordinators (IMCs), program personnel, report owners, and data input personnel; 4) Quality
Assurance (QA) Unit Testing, an extensive QA check against report specifications; 5) QA Third
Party Testing,  an extensive test made by an independent QA tester to ensure that  the report
produces data in conformance with the report specifications; 6) Regional CERCLIS Data Entry
Internal Control Plan, which includes: a) regional policies and procedures for entering data into
CERCLIS, b) a review process to ensure that all Superfund accomplishments are supported by
source documentation, c) delegation of authorities for approval of data input into CERCLIS, and,
d) procedures to ensure that reported accomplishments meet accomplishment definitions; and 7)
a historical lockout feature that has been added to CERCLIS so that changes in past fiscal year
data can be changed only by approved and designated personnel and are logged to a change-log
report.

Data Quality Review: The IG annually reviews the end-of-year CERCLA data, in an informal
process,  to verify the data supporting the performance measure.  Typically, there are no
published results.

Data Limitations: None

Error Estimate: NA

New/Improved Data or Systems: None

References:    Office of Site  Remediation Enforcement (OSRE)  Quality Management Plan,
approved April 11, 2001.
EFFICIENCY MEASURES\MEASUREMENT DEVELOPMENT PLANS

Site-Specific Efficiency Measure Development Plan for Superfund
The Superfund program is following  a written efficiency measure development plan.  The
proposed measures are percentage of total Superfund appropriated resources which are obligated
site-specifically and other efficiency measures.  The  milestone for FY 2005 is to complete
methodology and data collection procedures. It should be noted that the site-specific obligation
measure is currently one of many being considered by a Superfund workgroup designated to
develop Superfund efficiency measures.   The  proposed measure  has not been rigorously
analyzed nor reviewed by  the group to determine whether it is appropriate or feasible for the
program to implement. Development of this measure is referenced in the Program Assessment
Rating Tool (PART) summary in the Special Analysis section.

Other Measure Development Plans
The Superfund program is pursuing a measure development plan for (1) sites with land ready for
reuse, and (2) acres of land ready for reuse.  In FY 2005, the program plans to report a second
year of annual accomplishments for reuse performance measures.  In addition, the program plans
to initiate a draft feasibility analysis of reuse performance data collected over two years to
determine if setting a target is feasible, and to make recommendations for further action. Fully
implementing reuse measures is contingent on the feasibility analysis, which may reveal that
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setting targets for reuse performance measures could be counterproductive to other Superfund
program objectives. Development of this measure is referenced in the Program Assessment
Rating Tool (PART) summary in the Special Analysis section.

Another measure development plan is hi place for an expansion of the current Human Exposure
Control measure, covering National Priority List sites in six exposure categories.  In FY 2005,
the Superfund program plans to report the first year of accomplishments for an expanded Human
Exposure Control measure. Fully implementing this measure  is contingent on a feasibility
analysis, which may reveal  that  setting targets  for  this performance  measure  could be
counterproductive to other Superfund program objectives. Development  of this measure is
referenced in the Program Assessment Rating Tool (PART) summary hi the Special Analysis
section.
COORDINATION WITH OTHER AGENCIES

Superfund Remedial Program

       The  Superfund Remedial program  coordinates with  many  other  Federal  and state
agencies in accomplishing its mission. Executive Order 12580 delegates certain authorities for
implementing Superfund to other Federal agencies. Many of these agencies perform, in close
consultation and coordination with EPA, the actual cleanup and essential services in areas where
the Agency  does not possess the specialized expertise. Currently, EPA has active interagency
agreements  with the Department of Interior  (DOI),  the  National Oceanic and Atmospheric
Administration  (NOAA),  the  Federal  Emergency  Management   Agency  (FEMA),  the
Occupational Safety and  Health Administration (OSHA), and the United States Coast Guard
(USCG).

       These agencies provide numerous Superfund related services such as supporting  the
national  response system by providing emergency preparedness  expertise  and administrative
support to the national response team and the  regional response teams; conducting compliance
assistance visits to review site  safety and health plans and developing guidelines for assessing
safety and health at hazardous waste sites; conducting outreach to  states, Indian Tribes and
Federal  natural resource  trustee officials regarding  natural  resource  damage assessments;
providing scientific support for response operations in EPA's regional offices; assisting in the
coordination among  Federal  and state  natural  resource  trustee agencies;  supporting  the
Superfund program in the management and coordination of training programs for local officials
through the  Emergency Management Institute and the National Fire Academy; responding to
actual or potential releases of hazardous substances involving  the coastal zones, including the
Great Lakes and designated  inland river ports; and, litigating and settling cleanup agreements
and cost recovery cases.   In addition, the Agency coordinates with  the U. S. Army Corp of
Engineers (USAGE), states, and Tribes in the identification and cleanup of approximately 9,300
FUDS nationwide.  Expectations are that the Agency will play an even greater role at these sites
hi the future.
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       USAGE and the Bureau of Reclamation contribute to the cleanup of Superfund sites by
providing technical support for the design and construction of many remediation projects through
site-specific interagency  agreements.  These Federal partners  have the technical design  and
construction expertise and contracting capability needed to assist EPA regions in implementing
most of Superfund's high-cost Fund-financed remedial action projects. These two agencies also
provide  technical  on-site  support  to regions in the  enforcement oversight of  numerous
construction projects performed by PRPs.

       The Superfund response and Federal Facilities enforcement programs work closely with
other Federal  agencies (e.g.,  DOD, DOE, DOI, etc.) to clean  up  their facilities  under the
Superfund program. EPA also works with states and Indian tribes as key partners in the cleanup
decision-making process at Superfund Federal sites.

       The Agency also works hi partnership with state and Tribal governments to  strengthen
their hazardous waste programs and improve the efficiency and effectiveness of the  nation's
overall hazardous waste response capability. EPA assists the states in developing their CERCLA
implementation programs through infrastructure support, financial and technical assistance, and
training. Partnerships with states increase the number of site cleanups, improve the timeliness of
responses, and make land available for economic redevelopment sooner, while allowing for more
direct local involvement hi the cleanup process.

       EPA partners  with  other  Federal agencies,  state and local governments, and private
industry to fulfill Superfund program priorities when a site is radioactively contaminated. Under
CERCLA,  radioactively  contaminated sites  are  addressed in  a  manner consistent  with how
chemically contaminated sites are addressed,  accounting  for the  technical differences.   The
radiation program provides radiological scientific and  technical expertise and leadership in
evaluating projects and providing field and laboratory support.

Resource Conservation and Recovery Act

       The Agency maintains a close relationship with the state agencies that are authorized to
implement the Resource Conservation and Recovery Act (RCRA)  Corrective Action program.
EPA expects states to achieve the same level of Federal  standards  as the Agency, including
annual performance goals of human exposures and groundwater releases controlled.  As part of
the state grant process, Regional offices negotiate with the states their progress set in meeting the
corrective action environmental indicator goals.

       Encouraging states  to become authorized for the RCRA  Corrective Action program
remains a priority.  Currently, thirty-nine states and territories have the authority to  implement
the program. EPA expects two additional states to gain authorization in the next year. EPA also
encourages  states  to  use alternate  (non-RCRA)  authorities to  accomplish the goals of the
Corrective Action program. These include state Superfund and voluntary programs.

       The  RCRA Corrective Action program also  coordinates  closely with other Federal
agencies, primarily the Department of Defense and  Energy,  which have many sites hi the
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corrective action universe.   Encouraging Federal facilities  to meet environmental  indicators
remains a top priority.

Leaking Underground Storage Tanks

       EPA, with very few exceptions, does not perform the cleanup of leaking underground
storage tanks (LUST).  States and territories use the LUST  Trust Fund to administer their
corrective action  programs, oversee cleanups  by responsible  parties,  undertake  necessary
enforcement actions, and pay for cleanups in cases where a responsible party cannot be found or
is unwilling or unable to pay for a cleanup.  Most states have cleanup funds that cover the
majority of owners and operators' cleanup costs.  These state funds are separate from the LUST
Trust Fund.

       State LUST programs are key to achieving the objectives and long-term strategic goals.
Except  in Indian  Country,  EPA relies on  state agencies to implement the LUST program,
including overseeing  cleanups by responsible parties, and  responding to emergency LUST
releases. LUST cooperative agreements awarded by EPA are directly given to the states to assist
them in implementing their oversight and programmatic role.

Emergency Preparedness and Response:

       The focal  point for our Federal preparedness efforts  is EPA's  role in the National
Response System (NRS), which coordinates chemical emergency preparedness and response at
the Federal, state and local levels.   Within this structure, EPA chairs the multi-agency National
Response Team, and co-chairs Regional Response Teams that oversees national, regional, and
area spill emergency  planning.   In addition, the  Agency  plays a leadership role in crisis
management, which  requires  participation  on  a  number  of  interagency  committees and
workgroups. Federal Emergency Management Agency (FEMA) provides technical and financial
assistance to support  the National Contingency Plan and the NRS through development of
preparedness exercises and hazardous materials training.

       Under the Oil Spill program, EPA works  with other Federal agencies such as the United
States  Fish &  Wildlife Service,  National  Oceanographic  and Atmospheric Administration,
United  States  Coast  Guard (USCG),  FEMA,  Department of the Interior,  Department  of
Transportation, Department of Energy,  and  other Federal agencies and states, as well as with
local government  authorities to develop Area Contingency Plans.  The Department of Justice
also provides  assistance  to agencies with judicial referrals when enforcement of violations
becomes necessary. EPA and the USCG work in coordination with other Federal authorities to
implement the National Preparedness for Response program.
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STATUTORY AUTHORITIES

Atomic Energy Act of 1954, as amended, 42 U.S.C. 2011 et seq. (1970), and Reorganization
   Plan #3 of 1970
Clean Water Act
Comprehensive  Environmental  Response,  Compensation, and Liability  Act (CERCLA) as
   amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. 9.601-
   9657
Community Environmental Response Facilitation Act (CERFA)
Defense  Base Closure and  Realignment  Act of 1990,  and the  Defense Authorization
   Amendments and Base Realignment and Closure Act (BRAC) of 1990, Section 2905(a)(l)(E)
   (10 U.S.C. 2687 Note)
Departments of Veterans Affairs, Housing and Urban Development, and Independent Agencies
   Appropriations Act of 1999, Public Law 105-276, (112 Stat. 2461, 2499; 42 U.S.C. 6908a).
Executive Order 12241 of September 1980, National Contingency Plan, 3 CFR, 1980
National Environmental Policy Act (NEP A)
Oil Pollution Act 33 U.S.C.A.
Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)
Public Health Service Act, as amended, 42 U.S.C. 201 et seq.
Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended, 42 U.S.C. 5121
   et seq.
Safe Drinking Water Act, 42 U.S.C. 300F et seq. (1974)
Solid Waste Disposal Act as amended by Hazardous and Solid Waste Amendments of 1984 to
   the Resource Conversation and Recovery Act of 1976
Uranium Mill Tailings Radiation Land Withdrawal Act of 1978
Executive Order  12656  of  November  1988,  Assignment  of  Emergency Preparedness
   Responsibilities, 3 CFR, 1988
Executive Order 12580 of January 1987, Superfund I
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                          Land Preservation and Restoration

OBJECTIVE; Enhance Science and Research

      Through 2008, provide and apply sound science for protecting and restoring land by
conducting leading-edge research and developing a better understanding and characterization of
environmental outcomes under Goal 3.

                                 Resource Summary
                                (Dollars in Thousands)

Enhance Science and Research
Environmental Program & Management
Hazardous Substance Superfund
Leaking Underground Storage Tanks
Oil Spill Response
Science & Technology
Buildings and Facilities
Inspector General
Total Workyears
FY2003
Actuals
$46,531.6
$3,117.4
$25,144.1
$682.4
$881.0
$15,798.6
$812.0
$96.1
184.8
FY 2004
Pres. Bud.
$59,836.6
$3,026.1
$43,883.3
$730.6
$919.4
$10,374.9
$823.0
$79.1
181.4
FY2005
Pres. Bud.
$57,555.6
$2,983.2
$42,840.8
$736.7
$924.4
$9,112.3
$886.9
$71.3
186.4
FY 2005 Req. v.
FY 2004 Pres Bud
($2,280.9)
($42.9)
($1,042.5)
$6.1
$5.0
($1,262.6)
$63.9
($7.7)
5.0
                                  Program Project
                                (Dollars in Thousands)

Congresskmally Mandated Projects
Superfund: Remedial
Research: Land Protection and Restoration
Research: SITE Program
Administrative Projects
TOTAL
FY2003
Actuals
$5,963.3
$0.0
$25,122.8
$4,781.1
$10,664.4
$46,531.6
FY 2004
Pres. Bud.
$0.0
$6,291.5
$36,568.5
$6,941.1
$10,035.5
$59,836.6
FY2005
Pres. Bud.
$0.0
$6,234.0
$33,059.3
$6,927.7
$11,334.6
$57,555.6
FY 2005 Req. v.
FY 2004 Pres Bud
$0.0
($57.5)
($3,509.2)
($13.4)
$1,299.2
($2,280.9)
FY 2005 REQUEST

Results to be Achieved under this Objective

       EPA's Land Protection and Restoration research and science programs are committed to
conducting  leading-edge research to provide a foundation  for preserving  land quality and
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remediating contaminated land.  These efforts will result in documented methods,  models,
assessments, and risk management options for program and regional offices, facilitating then-
accurate evaluation of effects on human health and the environment, understanding of potential
exposure, and implementation of effective remediation options.

       As of 2001, there were approximately 1200 Superfund sites on the National Priorities List
(NPL).  In addition, it is estimated that there are more than 5,000 RCRA corrective action sites,
and  422,573  leaking underground  storage tanks30.   The vast  majority of these  sites are
contaminating groundwater and the public runs the risk of being exposed to hazardous materials
that are associated with these sites. The number, diversity, and complexity of contaminated sites
warrant an ongoing research program aimed at improving EPA's ability to characterize,  assess
and remediate contamination efficiently so that land  may be returned to productive use without
unacceptable risk to communities (Criterion: Relevance). Cost estimates for cleaning up all of
these sites are  over $100 billion31;  scientific and  technological  advances  offer the best
opportunity of containing these costs.

       To support the Agency's objective of managing active waste management facilities to
prevent  contaminant releases  into  the  environment, the Agency will conduct research hi
multimedia science, waste management, and RCRA  corrective  action  as  well as  perform
technical support activities.  This supports the  Agency's need for research  to  build a  strong
scientific foundation for regulatory  reforms  and, thereby,  supports  the Agency's mission to
protect human health and the environment (Criterion: Relevance).

       EPA's responsibility is to preserve and  restore the Nation's land resources using the most
effective waste  management  and remediation  methods available.   The Agency's research
program  is helping  to  achieve this goal  by accelerating  scientifically defensible and cost-
effective characterization and clean-up of contaminated sites. The Agency has developed Multi-
                                        ^"y                       "%"%
Year Plans for both Contaminated Sites  and  Hazardous Waste   research, with input from
across the Agency, to ensure that the research  conducted is relevant and addresses Agency-wide
goals and priorities.  The externally peer reviewed Waste Research Strategy34 was released in
1999 to provide a clear rationale for  selection and prioritization  of waste research activities
(Criterion: Relevance). The vast majority of this work is funded through competitively awarded
support  contracts, containing  the requisite  quality assurance plans and standard operating
procedures (Criterion: Quality).
30 U.S. Environmental Protection Agency. Superfund Accomplishment Figures, Summary Fiscal Year (FT) 2003.
Accessed January 14,2004. Available only on the internet at:
http://www.epa.gov/superfund/action/process/numbers.htm
31 U.S. Environmental Protection Agency. Cleaning up the Nation's Waste Sites: Markets and Technology Trends.
(EPA/542/R-96/005). Washington D.C.: Government Printing Office. (1997).
32 U.S. EPA, Office of Research and Development. Contaminated Sites Multi-Year Plan. Washington D.C.: EPA.
Accessed January 14,2004. Available only on the internet at: www.epa.gov/osp/myp
33 U.S. EPA, Office of Research and Development. Hazardous Waste Multi-Year Plan. Washington D.C.: EPA.
Accessed January 14, 2004. Available only on the internet at: www.epa.gov/osp/myp
34 U.S. EPA, Office of Research and Development. Waste Research Strategy.  (EPA/600/R-98/154). Washington
DC:  Government Printing Office. (1999)


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Research: Land Protection and Restoration

Contaminated Sediments

       Contaminated  sediments  are  soils, sands, and organic matter that accumulate on the
bottom of a  water body and contain toxic or hazardous materials.  Research in the area of
contaminated sediments is working toward improving the range and scientific foundation for
remedy  selection options  by  enhancing risk  characterization,  site characterization and
understanding of different remedial options (Criterion: Relevance).

       Contaminated sediments are present at many large and controversial sites where risks are
often disputed and costly remedies can take years to demonstrate meaningful results, making the
issue a high  research priority for the Agency as well as the public (Criterion: Relevance). In
order to advance clean-up of these sites and thereby reduce risk of exposure, research focuses on
three main themes: addressing questions in characterizing sites and deriving more certain human
and  ecological risk  assessments;  addressing specific  gaps in our understanding of human
exposure; and expanding the number of remedial alternatives with documented performance.

       In FY 2005, research will continue to focus on improving our ability to characterize
accurately the risks posed by contaminated sediments.  EPA  will also continue to  develop
remediation alternatives and evaluate their short- and long-term performance,  as well as test
several remedies to identify approaches that have potential cost or performance advantages.

Groundwater (including LUST)

       Dense non-aqueous phase liquids (DNAPLs) are chlorinated solvents that were used in a
wide range of manufacturing industries.  Poor storage, disposal, and transport of these toxic
chemicals have lead to widespread contamination. In FY 2005, research will  continue on the
high  priority,  complex problem of  determining  DNAPL location  and  concentration  in
groundwater. EPA is developing and evaluating several non- or minimally-intrusive geophysical
techniques, yielding a greater ability to make sound waste management decisions. Groundwater
remediation research is focusing on an approach for DNAPL site clean-up, including combining
multiple treatment technologies to move toward successful remediation. Research on the use of
thermal treatment and flushing processes to address DNAPL source zones will also continue.

       EPA  will conduct  field  studies on monitored natural  attenuation (MNA) of mobile
metals.  Monitored natural attenuation offers an alternative to  more  conventional clean-up
methods at lower cost and with  less intrusion to the surrounding environment.  Studies on the
application of permeable reactive barriers (PRBs) to inorganic contaminants such as arsenic and
mercury will also continue.  PRBs  are an alternative approach for remediating groundwater
contamination that combines subsurface fluid  flow management with a  passive  chemical
treatment zone.   Although this  research area is relatively young, PRB's are beginning to  be
selected for Superfund sites based on documented performance of the systems35
35 U.S. EPA, Office of Research and Development. Capstone Report on the Application, Monitoring, and
Performance of Permeable Reactive Barriers for Ground-Water Remediation. (EPA/600/R-03/045) Washington
D.C.: U.S. Government Printing Office. (2003).


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       Leaking underground storage tanks (LUST) corrective action research will continue to
address assessment and clean-up processes for fuels and fuel oxygenates, such as methyl tertiary
butyl ether (MTBE). Assessment work will focus on the development of transport models that
can be used by state project managers.  The first generation of these web-based models are
already receiving  over  10,000  hits  per month (Criteria:  Relevance  and  Performance).
Remediation research will  address  multiple approaches  applicable to spilled  fuels,  with and
without oxygenates like  MTBE  and ethanol.   These approaches include treatment  and
containment methods that could be applied to existing spills or engineered as a safety feature of
new storage  tank placements.    One  remediation  device  is  a bioreactor,  which  uses
microbiological processes to transform and stabilize organic wastes. This technology has been
developed for use in MTBE removal in water sources. When proven in field tests, this low cost,
effective unit has the potential to provide  an extra measure of safety to public and private water
supplies.

Soils/Land Research

       EPA is developing analytical methods that lower detection limits, improve accuracy, and
decrease screening costs in soils/land research.  In FY 2005, research will focus  on persistent
organic toxins,  and efforts will be completed on sampling  methods  for volatile organic
compounds (VOCs) in soils.

       EPA is also evaluating the effectiveness of current containment systems and developing
new systems using innovative materials and methods. Research areas include caps, covers, and
vertical barriers for the transition zone  between the land surface and the water table;  fixed
barriers; remediation methods for contaminated plumes  and infiltration control using plants; and
soil contaminant immobilization.  In FY 2005 research  will focus on the stability of newer cap
materials and on alternative cover system assessment.

Multimedia Research (Including Risk Assessment Research and Oil SpiUs Research)

       Multimedia research focuses on: 1) assessing, predicting, and communicating risks to the
environment; and 2) developing testing protocols, risk management strategies, and identifying
fate and effects of oil spills.

       In FY 2005, risk assessment research will continue to focus on developing methodologies
and  factors that  enable  ecological  risk  assessors to  estimate  the amount of  soil-borne
contamination that will be biologically "available" to wildlife.

       Oil spills research  has three areas of  emphasis:   test protocol development,  fate and
transport modeling, and remediation. In FY 2005, EPA will complete a set of protocols needed
to test spill response products, and work will continue on models that help describe and track the
spreading of oil spills. Remediation research will continue on physical, chemical, and biological
risk management methods for petroleum and non-petroleum oils spilled in freshwater and marine
environments.
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Waste Management

       A number of significant technical problems remain related to  waste management,
including arsenic treatment, treatment of residual disposal, use of landfill bioreactors to manage
municipal solid waste, and combustion.  Certain hazardous waste disposal techniques must be
reevaluated and improved to ensure releases are minimized. The ability to predict waste releases
depends on the ability of leaching protocols to reflect accurately the waste environment and
matrix effects.  Research will continue to define the role of leaching tests and protocols, and to
document their limitations.

       In the area of municipal solid waste management, EPA is collaborating with the private
sector to conduct  field evaluations of the performance of landfill bioreactors and with states to
develop a monitoring  program to optimize operations and minimize potentially dangerous
emissions.  Landfill bioreactors have potential to provide alternative energy in the form of
landfill gas while increasing the nation's landfill capacity.  In FY 2005, EPA will conduct field
sampling and monitoring  of  several  landfill bioreactors,  continue  the characterization of the
microbiology of bioreactor cells, and initiate a bioreactor design manual. Results of these efforts
will include an interim field assessment of a  landfill bioreactor system.  In conjunction with
drinking water research in Goal 2, efforts will continue on hard-to-treat wastes and focus on the
characterization and treatment of arsenic-bearing residuals.  Leaching studies will continue on
arsenic-bearing wastes, mine process  wastes, and municipal solid wastes, including those in
bioreactors.

       Emissions from combustion  facilities remain a  public concern and a  number of
uncertainties  exist,  including the cumulative impact  of  continuous emissions from multiple
combustion facilities.  In FY 2005, EPA will conduct further research on continuous emissions
monitors will continue with a focus on dioxins and other products of incomplete combustion
(PICs),  supporting the Agency's goal of reducing dioxin and furan emissions  from waste
combustors.

       Multimedia Decision-Making

       In FY 2005, the Agency will work to advance the multimedia modeling methodologies
that support  core and  emerging  RCRA  program needs.  In support  of EPA's Resource
Conservation  Challenge, a major national effort to reduce waste by promoting  the use of
recycled products to  conserve natural  resources,  EPA will develop  multimedia  science
approaches and  risk assessment  procedures  for evaluating potential  contaminant releases
resulting from the beneficial reuse of waste-derived products, as well as methods for electronic
waste recycling. This research effort will have broad applicability and benefit to other programs'
multimedia risk assessments.  EPA works with other Federal entities through a multi-agency
Memorandum of Understanding (MOU), the goal of which is  to enhance coordination hi the
development  of reliable risk assessment methods and technologies.

       EPA has set goals of meeting environmental indicators at high priority sites and moving
sites through the  RCRA corrective action  process. New concerns have arisen regarding ways
contaminants may migrate from groundwater to surface water and from groundwater to indoor
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air. In FY 2005, the Agency will continue providing support for evaluation of these pathways as
well as on the fate  and transport of contaminants through the groundwater/surface water
interface.  In addition, work on vapor intrusion modeling will continue.

Technical Support

       Technical support activities associated with contaminated sites and RCRA Corrective
Action, conducted through support centers, include site-specific technical support, responses to
scientific  questions (e.g., human  health and environmental toxicity), and technology trar  rar
documents to EPA program offices and other stakeholders.

       The  Hazardous Substance Technical Liaison (HSTL)  Program provides and facilitates
technical support to EPA Regions in waste-related areas, including the transfer of scientific and
engineering products- between research laboratories and the Regions. The program also provides
direct assistance in a variety of technical areas.

           Research: SITE (Superfund Innovative Technology Evaluation) Program

       The  goal of the SITE36 program is to identify,  demonstrate,  assess, and distribute
information about innovative and alternative environmental  technologies to  developers,
remediation site  managers,  and  regulators,  yielding more  efficient  characterization  and
remediation processes. In FY 2005, this program will continue to conduct demonstrations of
innovative remediation, monitoring, and measurement approaches, with the goal of increasing
the application  of more effective and less costly options  that already exist.   Through a
competitive solicitation process, EPA selects technologies that address high priority remediation
problems  identified by the Agency and regions (Criterion:  Quality).  Since the inception of the
SITE program in 1986, clean-up of contaminated sites through the use of innovative technologies
has resulted in an  estimated net cost savings of $2.4 billion.  This averages to a savings of 72
percent per site37 (Criteria: Relevance and Performance).

Superfund: Remedial

       EPA's Office  of Superfund  Remediation  and Technology  Innovation  (OSRTI) is
committed to using sound science and technological advances in its programs to preserve land
and remediate contaminated land.  Modernization of analytical tools, remediation technologies
and strategies to address contaminated sites can lead to more  effective efforts to preserve and
remediate land. This goal, to integrate science advances into OSRTI's programs, recognizes that
many of these advances may come from research and technology applications from EPA and
elsewhere.

       EPA will  track  the  state of the  practice  for analytical methods  and  remediation
technologies.  The Agency will work in partnership with academics, other Federal agencies and
36 For more information about EPA's SITE program, see http://www.epa.gov/ORD/SITE/
37 U.S. EPA, Office of Research and Development.  The Superfund Innovative Technology Evaluation Program:
Annual Report to Congress FY 2001. (EPA/540/R-03/502). Washington DC: Government Printing Office. (2003).
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industry to  identify and deploy promising technologies  and strategies.   The program will
document successful technology applications, encourage field trials  of emerging technologies
and strategies, provide field technical assistance for new approaches and deliver training to EPA
and state personnel to keep them abreast  of emerging innovations.  EPA will also explore
promising optimization techniques to improve EPA's remedies and their associated monitoring
systems.
FY 2005 CHANGE FROM FY 2004

S&T

    •  (-$1,000,000) This decrease represents a shift from research to enhance the Agency's
       knowledge of interactions that occur at the groundwater/surface water (gw/sw) interface,
       to the Science to Achieve Results (STAR) Fellowships program in Goal 4.

    •  (-$226,100)  These resources represent savings that will result from consolidation of
       many information technology (IT) services, including call center and service desk, server
       management, and hardware and software acquisition, and IT equipment standardization.
       This will result in enhanced security and uniform maintenance requirements. Since these
       resources represent an efficiency savings, there is no negative programmatic impact.

There are additional increases for payroll, cost of living, and enrichment for new and existing
FTE.

Superfund

    «  (-$2,250,000)  This reduction represents a significant decrease  in funding  for the
       Hazardous Substance Research Centers  (HSRCs).  These centers conducted research that
       focused on different aspects of hazardous substance management.

There are additional increases for payroll, cost of living, and enrichment for new and existing
FTE.
ANNUAL PERFORMANCE GOALS AND MEASURES

Research

Scientifically Defensible Decisions for Site Clean

In 2005     Complete at least four SITE demonstrations, with emphasis on NAPLs and sediments, in order to, by
           2010, develop or evaluate 40 scientific tools, technologies, methods, and models, and provide technical
           support that enable practitioners to 1) characterize the nature and extent of multimedia contamination;
           2) assess, predict, and communicate risks to human health and the environment; 3) employ improved
           remediation options; and 4) respond to oil spills effectively.
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In 2004     Provide risk assessors and managers with site-specific data sets on three applications detailing the
           performance of conventional remedies for contaminated sediments to help determine the most effective
           techniques for remediating contaminated sites and protecting human health and the environment.

In 2003     Delivered state-of-the-science report and methods to EPA and other stakeholders for risk management
           of fuel oxygenates; organic and inorganic contamination of sediments, ground water and/or soils; and
           oil spills to ensure cost-effective and technically sound site clean-up.

Performance Measures:                       FY2003    FY2003     FY2003
                                            Actuals    Actuals      Actuals
Complete draft of the FY 2002 Annual SITE          1                                   draft report
Report to Congress.

Reports on performance data for conventional                    3                       reports
sediment remedies  for three sites.

SITE demonstrations completed                                             4          demonstrations
Baseline:   This APG will contribute to an array of assessment and remediation options targeted to addressing
           situations  where uncertainty remains high, technology performance is lacking, or where existing
           options are cost- or time intensive.  Through FY 2005, non-aqueous phase liquids (NAPLs) and
           contaminated sediments will be of special interest because of the cost and complexity of assessing and
           remediating  these sites,  as well  as  the risks  they  pose to  public health.  EPA estimates  that
           approximately 20% of National Priorities List (NPL) sites have contaminated sediments with risk from
           a number of toxic substances (http:www.epa.gov/superfund/resources/sediment/index.htm). Available
           remedies are unproven,  expensive to implement, or both.   The SITE  program evaluates tools,
           technologies, and approaches for remediation, measurement, and  monitoring.   The innovative
           approaches that are evaluated are largely developed in the private sector.  The purpose of the program
           is to provide an independent assessment of performance, so that site decision-makers can gain
           confidence hi selecting an innovative approach.  Since  the inception of the SITE program in 1986,
           clean-up of contaminated sites through the use of innovative technologies has resulted in an estimated
           net cost savings of $2.4 billion
            (http://www.epa.gov/ORD/SITE/congress/540R03502/540R03502.htm).    Beginning  in FY 2005,
           regular evaluations  by independent  and external panels will provide reviews  of EPA  research
           programs' relevance,  quality,  and successful performance to date, in  accordance with OMB's
           Investment Criteria  for Research and Development.  Reviewers will also qualitatively determine
           whether EPA has been successful in meeting its annual  and long-term commitments for  research.
           Recommendations and results from these reviews will improve the design and management of EPA
           research programs and help to measure their progress under the Government Performance and Results
           Act(GPRA).
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure:

SITE demonstrations completed

Performance Database:  Program output; no internal tracking system

Data Source:  N/A

Methods, Assumptions and Suitability: N/A


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QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations: N/A

Error Estimate: N/A

New/Improved Data or Systems: N/A

References: N/A


COORDINATION WITH OTHER AGENCIES

       EPA coordinates with other agencies to conduct risk  management and assessment
research. These activities include work with the Department of Defense (DOD) in its Strategic
Environmental Research and Development Program and the Environmental Security Technology
Certification  Program, the  Department  of Energy (DOE), and  the Office of Health  and
Environmental Research. EPA also conducts collaborative field demonstrations (e.g., through the
SITE program) and laboratory research with DOD, DOE, the Department of Interior (particularly
the U.S. Geological  Survey - USGS), and the National  Aeronautics and Space Administration
(NASA) to improve characterization and risk management options for dealing with subsurface
contamination.   Collaborations  with  external organizations provide the Agency with more
opportunity to understand and address  a variety of complex waste/site characterization and
remediation problems and, consequently, improve the Agency's ability to meet its objective of
quicker and more cost-effective site cleanups. A collaborative DNAPL remediation alternatives
demonstration among EPA,  DOE, and NASA, begun in 1995, led to formation of the  Federal
DNAPL Technology Initiative.

       Other coordinated research  efforts  include the  unique controlled-spill field research
facility designed hi cooperation  with the U.S. Bureau of Reclamation.  Geophysical research
experiments and development of software  for subsurface  characterization and detection of
contaminants are being conducted  with the  USGS and DOE's Lawrence  Berkeley National
Laboratory.  These experiments include the use of a controlled spill unit in which the movement
of spilled solvents is monitored using experimental ground penetrating radar, borehole dielectric
techniques, complex resistivity, seismic techniques, and electromagnetic techniques.

       The USGS also has a number of programs, such as the Toxic Substances  Hydrology
Program, that support studies related to contamination of surface water and groundwater by
hazardous materials. Groundwater modeling and remediation of MTBE  is being  conducted in
collaboration with a number of states, including New York, Oklahoma,  and California. Also,
Remediation Technology Development Forum (RTDF) teams on  such topics as bioremediation,
metal treatment, and contaminated sediments have been formed to conduct collaborative research
programs addressing priority technical issues.
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       The Agency is also working with the National Institute of Environmental Health Sciences
(NIEHS),  which manages a large basic research program focusing on Superfund issues, to
advance fundamental Superfund research.  Also, the Agency for Toxic Substances and Disease
Registry (ATSDR) was established to provide critical health-based information to assist EPA in
making effective cleanup decisions.  EPA  will continue to work with these agencies on
collaborative projects, information exchange, and identification of research issues.

       The Interstate Regulatory Cooperative  (ITRC) has proven a good forum for coordinating
federal and state activities and for defining continuing research needs through its teams on topics
including contaminated sediments, permeable reactive barriers, radionuclides, and brownfields.

       EPA developed an MOU with several other agencies (DOE, DoD, Nuclear Regulatory
Commission, Department of the Interior - USGS, NOAA, and the Department of Agriculture) for
multimedia modeling research and development.

       With respect to waste management issues, research is being coordinated with the  public
and private sectors. Currently, EPA has the lead in providing regulatory guidance for solid waste
disposal issues.   The  Agency has  also worked extensively with  bioreactor technology, in
cooperation with states and private industry, and  will continue to do so in FY  2005.  In
conjunction with the Association of State and Territorial Solid Waste Management Officials
(ASTSWMO) and the National Council of Governors, EPA state programs have been actively
analyzing  new operating configurations for landfills to help states and municipalities develop
options for managing municipal solid waste.
STATUTORY AUTHORITIES

Brownfields Revitalization and Environmental Restoration Act
Comprehensive Environmental Response, Compensation, and Liabilities Act (CERCLA)
Hazardous and Solid Waste Amendments (HSWA)
Oil Pollution Act (OPA)
Resource Conservation and Recovery Act (RCRA)
Solid Waste Disposal Act (SWDA)
Superfund Amendments and Reauthorization Act
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                   LAND PRESERVATION AND RESTORATION
Alternative Dispute Resolution, ni-59
Base Realignment and Closure (BRAC), 111-47,111-57,111-70
Brownfields, III-3, III-9,111-63,111-66,111-96
Categorical Grant
  Hazardous Waste Financial Assistance, IH-14,111-39,111-66
  Tribal General Assistance Program, 111-14
  Underground Storage Tanks, III-14,111-30
Civil Enforcement, 111-39
Compliance Assistance and Centers, 111-14,111-39,111-62
Congressionally Mandated Projects, 111-14,111-39,111-87
Homeland Security
  Preparedness, Response, and Recovery, 111-39,111-67
LUST/UST,III-14,III-39
LUST Cooperative Agreements, 111-39,111-64
Oil Spill
  Prevention, Preparedness and Response, 111-40
RCRA
  Corrective Action, 111-40,111-65
  Waste Management, III-14
  Waste Minimization & Recycling, III-14
Research
  Land Protection and Restoration, 111-87,111-89
  SITE Program, 111-87
Science Advisory Board, III-10
Superfund
  Emergency Response and Removal, 111-40,111-60
  Enforcement, 111-40
  EPA Emergency Preparedness, 111-40,111-61
  Federal Facilities, 111-40,111-55
  Federal Facilities lAGs, 111-40
  Remedial, HI-40,111-87
  Support to Other Federal Agencies, 111-40,111-54

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Goal 4: Healthy Communities
     and Ecosystems

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 4: Healthy Communities and Ecosystems	IV-1
      Chemical, Organism, and Pesticide Risks	IV-22
      Communities	IV-80
      Ecosystems	IV-103
      Enhance Science and Research	TV-134
      Subject Index	TV-176

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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                         Healthy Communities and Ecosystems

STRATEGIC GOAL:  Protect, sustain, or restore the  health of people,  communities,  and
ecosystems using integrated and comprehensive approaches and partnerships.

                                  Resource Summary
                                 (Dollars in thousands)


Healthy Communities and Ecosystems
Chemical, Organism, and Pesticide Risks
Communities
Ecosystems
Enhance Science and Research
Total Workyears
FY2003
Actuals
$1,211,267.2
$345,298.1
$313,167.7
$171,169.4
$380,878.7
3,923.7
FY2004
Pres. Bud.
$1,262,438.1
$364,126.3
$317,572.9
$160,698.1
$420,040.9
3,824.4
FY2005
Pres. Bud.
$1,298,932.0
$383,305.4
$319,958.4
$200,844.5
$394,823.7
3,850.1
FY 2005 Req. v.
FY 2004 Pres
Bud
$36,493.9
$19,179.2
$2,385.4
$40,146.5
($25,217.2)
25.8
BACKGROUND AND CONTEXT

       To promote healthy communities and ecosystems, EPA must bring together a variety of
programs, tools, approaches and resources. The support of a multitude of stakeholders, along
with strong partnerships with Federal, State, Tribal and local governments, are necessary to
achieve the  Agency's goal  of protecting, sustaining or restoring healthy communities  and
ecosystems.   The Agency's  goal  of achieving healthy  communities and ecosystems will be
accomplished by  focusing both on stressors to human health  and the environment and the
locations at most risk from environmental problems.

       A  key component of this goal is  protecting human health and the environment by
identifying, assessing, and reducing the potential risks presented by the thousands of chemicals
on which our society and economy have come to depend. These include the pesticides we use to
meet national and global demands for food, and the industrial and commercial chemicals found
throughout our homes, our workplaces, and the products we use.

       Some pest-control methods that are used to ensure  an  abundant and affordable food
supply can cause unwanted environmental  or health effects if not used and managed properly.
Apart from its role in agriculture, effective pest control is  also essential in homes, gardens,
rights-of-ways, hospitals,  and drinking water treatment facilities.   Pesticides are an  important
part of pest management in each of these settings.  EPA licenses pesticides to help ensure they
can be used  safely and beneficially  while avoiding unintended  harm  to  our health or
environment.  EPA must also address the emerging challenges posed by a growing array of
biological organisms—naturally occurring  and, increasingly, genetically engineered—that are
being used in industrial and agricultural processes.
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       Agriculture accounts for  about  80 percent of all  conventional pesticide applications.
Herbicides are the most widely used pesticides and account for the greatest expenditure and
volume, approximately $6.4 billion and 534 million pounds in 1999. Biopesticides and reduced
risk pesticides are assuming an increasingly important role. For example, safer pesticides, which
include biopesticides and reduced risk pesticides, increased in use from 3.6 percent in 1998 to
7.5 percent of total pounds reported for 2002.

       Biological agents are potential weapons that could be exploited by terrorists against the
United States. EPA's pesticides antimicrobial program has been very responsive to addressing
this threat. Antimicrobials play an important role in public health and safety. EPA is conducting
comprehensive scientific assessments and developing test protocols to determine product safety
and efficacy of products used against chemical and biological weapons of mass destruction, and
registering products  as necessary.  EPA is  also developing a timeline  for prioritizing and
implementing the tests.

       EPA programs under this Goal have many indirect effects that significantly augment the
stream of benefits they provide.  For example, each  year the  Toxic Substances Control Act
(TSCA) New Chemicals program reviews and manages the potential risks from approximately
1,800 new chemicals and 40 products of biotechnology that  enter the marketplace.  Since  its
inception, approximately  17,000 new chemicals reviewed by the program have entered United
States  commerce.  This new chemical review process  not only protects the public  from the
possible immediate threats  of harmful chemicals like polychlorinated biphenyls (PCBs) from
entering the marketplace, but it has also contributed to  changing the behavior of the  chemical
industry, making industry more aware and responsible for the impact these chemicals have  on
human health and the environment.

       Americans come into daily contact with any number of chemicals that entered the market
before the New Chemicals Program was established in 1978, yet relatively little is known about
many of their potential impacts.   Getting basic hazard testing information on  large volume
chemicals is one focus of EPA's work in the Existing  Chemicals program.  The voluntary High
Production Volume program challenges industry to develop chemical hazard data critical to
enabling EPA, State, Tribes, and  the public to screen chemicals already in commerce for any
risks they may be posing. Risks of other chemicals, such as lead or PCBs are well known, and
EPA's responsibility centers on reducing exposure through proper handling or disposal.

       The  Acute Exposure Guideline Levels  (AEGLs)  Program was designed by EPA to
provide scientifically credible data to directly support chemical emergency planning,  response,
and prevention programs mandated by Congress.  Emergency workers and first responders need
to know how dangerous a chemical contaminant may be to breathe or touch, and how long it may
remain dangerous. The program develops short-term exposure  limits applicable to  the general
population for a wide range of extremely hazardous substances (approximately 400) for purposes
related to chemical terrorism and chemical accidents.

       In addition to addressing human health and ecosystems and stressors such as chemicals
and pesticides,  this goal also focuses on those geographic areas with human and ecological
communities at most  risk.   For example  the Mexican Border is an  area  facing unique
environmental challenges.   At  the Mexican  Border, EPA  addresses local  pollution and

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infrastructure needs  that are priorities for the Mexican and the U.S. governments under the
Border 2012 agreement.

       As the population in coastal regions grows the challenges to preserve and protect these
important ecosystems  increase.  Through the National Estuary Program,  coastal areas have
proved  valuable  grounds for  combining innovative and community-based approaches with
national guidelines and inter-agency coordination to achieve results.

       Wetlands  are among the most productive ecosystems in the world,  comparable to rain
forests and coral  reefs.  Yet the nation loses an estimated 58,000 acres per year, and existing
wetlands may be degraded by excessive sedimentation, nutrient enrichment, and other factors.1

       In 2001 the Supreme Court determined that some isolated waters and wetlands are not
regulated under the Clean Water Act. Many waters with important aquatic values may no longer
be covered by CWA Section 404 protections.

       Large water bodies like the Gulf of Mexico, the Great Lakes, and the Chesapeake Bay are
surrounded by industrial and other development and have been exposed to substantial pollution
over many years  at levels higher than current environmental standards permit.  As a result, the
volume of pollutants in these water bodies has exceeded their natural ability to restore balance.
Working with stakeholders, EPA has established special programs to protect and restore these
unique resources by addressing  the vulnerabilities for each.

       EPA's continued enforcement efforts will be strengthened through the  development of
measures to assess the impact of enforcement activities and assist in targeting areas that pose the
greatest risks to  human health and the environment, display patterns of noncompliance, and
include disproportionately exposed populations.  In addition,  the EPA's enforcement  program
supports  Environmental Justice   effort  by  focusing  enforcement  actions  and  criminal
investigations on industries that have repeatedly violated environmental laws in minority and/or
low-income areas.

       Further, EPA's Brownfields Initiative funds pilot programs and  other research efforts;
clarifies liability  issues; enters into Federal, state and local partnerships; conducts  outreach
activities; and creates job training and workforce development programs.

       EPA's environmental justice program will  continue education,  outreach,  and data
availability initiatives.   The Program  provides  a  central point for the  Agency to  address
environmental  and human  health concerns in minority  and/or  low-income  communities—a
segment of the population that has been disproportionately exposed to environmental harms and
risks.  The program will continue to manage the Agency's Environmental  Justice Community
Small Grants Program that assists  community-based organizations working to develop solutions
to local environmental issues.
' Dahl, I.E. 1990. Status and Trends of Wetlands in the Conterminous United States, 1986 to 1997. Washington, DC: U.S.
Department of the Interior, U.S. Fish and Wildlife Service. Available online at:
http://wetIands.fws.gov/bha/SandT/SandTReport.htinl: Report to Congress on the Status and Trends of Wetlands in the
Conterminous United States, 1986 to 1997.

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       The Agency will continue to support the National Environmental Justice Advisory
Council (NETAC) which provides the Agency significant input from interested stakeholders such
as community-based organizations, business and industry, academic institutions, state, Tribal and
local governments, non-governmental organizations and environmental groups.  The Agency will
also continue to chair an Interagency Working Group (IWG) consisting of eleven departments
and agencies, as well  as  representatives of various  White House offices, to ensure that
environmental justice concerns are incorporated into all Federal programs.

Research

       EPA has a responsibility to ensure that efforts to reduce potential environmental risks are
based on the  best available scientific information.  Strong science allows identification of the
most important sources of risk to human health and the environment as well as the best means to
detect, abate, and avoid possible environmental problems, and thereby guides our priorities,
policies, and deployment of resources.  It is  critical that research and scientific assessment be
integrated with EPA's policy and regulatory activities. In order to address complex issues in the
future, the Agency will  design and test fundamentally new tools and management approaches
that have potential  for  achieving environmental results.   Under Goal 4, EPA will  conduct
research in many areas, including emerging areas such as biotechnology and computational
toxicology,  to  help develop  better  understandings  and  characterizations  of  positive
environmental outcomes  related to healthy communities and ecosystems.

       EPA uses several noteworthy mechanisms to ensure scientific  relevance, quality, and
integration as  it seeks to produce sound environmental results.  For example, EPA's Science
Advisor is responsible for advising the EPA Administrator on science and technology issues to
support Agency programs,  policies, procedures, and decisions.  Also,  EPA uses its  Science
Advisory Board (SAB), an independently chartered Federal Advisory Committee Act committee,
to conduct annual, in-depth reviews and analyses of EPA's Science and Technology account.
The SAB provides its findings to the House  Science Committee and reports findings to EPA's
Administrator after every  annual review.   Under the Science to Achieve  Results  (STAR)
program, all research projects are  selected for  funding through a  rigorous,  competitive, and
external peer review process designed  to  ensure that  only the highest  quality  efforts  receive
funding support. All EPA scientific and technical work products must undergo either internal or
external peer review,  with  major or significant  products requiring external peer review.  The
Agency also uses a Peer  Review Handbook (2nd Edition) which codifies procedures and guidance
for conducting quality EPA peer reviews.  Taken together, these mechanisms serve to ensure
EPA's research and science  remains relevant and committed to achieving superior environmental
results.

MEANS AND STRATEGY

       In coordination with our State and Tribal co-regulators and co-implementers and with the
support of industry,  environmental groups, and  other stakeholders, EPA will use multiple
approaches to address risks  associated with chemicals and pesticides. Improving communities'
ability to address local problems is a critical part of our efforts to reduce risk.
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       The Agency's strategy for reducing the risks of exposures to pesticides and industrial
chemicals is based on:

•      Identifying  and   assessing  potential  risks  from?  chemicals,  pesticides,  and
       microorganisms;
•      Setting priorities for addressing these risks;
•      Developing and implementing strategies aimed at preventing risks and managing those
       risks that cannot be prevented;
•      Implementing regulatory measures,  such as systematic review  of pesticides and new
       chemicals,  and developing  and implementing procedures for safe production, use,
       storage, and handling of chemicals, pesticides, and microorganisms;
•      Employing innovative voluntary measures,  such as promoting the use  of reduced-risk
       pesticides  and challenging companies to assess and reduce chemical risks and develop
       safer and less polluting new chemicals, processes, and technologies; and
•      Conducting outreach and training, and establishing partnerships.

Pesticides Management

       EPA has the responsibility under Federal Insecticide, Fungicide and Rodenticide Act
(FIFRA) and the Federal Food and Drug Cosmetic Act (FFDCA) to set terms and conditions of
pesticide registration, marketing and use.  EPA will use these authorities to reduce risk from
residues of pesticides, particularly those pesticides  with the highest potential to cause harm to
human health and the environment,  including those which pose particular risks to children and
other susceptible populations.  All new pesticides are reviewed for registration through  an
extensive review and evaluation of human health and ecosystem studies and data, applying the
most recent  scientific  advances  in risk  assessment.  The Registration  program  includes
registration activities, such as setting tolerances, registering new active ingredients and new uses,
and handling experimental use permits and emergency exemptions.

       New registration actions result in more pesticides on the market that meet the strict Food
Quality Protection Act (FQPA) pesticide risk-based standards, which brings the Agency closer to
the objective of reducing adverse risks from pesticide use.  In 2005, the Agency will continue to
promote  accelerated registrations for pesticides that provide unproved risk reduction or risk
prevention compared to those currently on the market. Progressively replacing older, higher-risk
pesticides is one of the most effective methods for curtailing adverse impact on health and the
ecosystem while preserving food quality and production rates.   EPA measures adoption  of the
reduced-risk pesticides by tracking the amount  of acres treated — or "acre treatments" — using
reduced risk pesticides. By 2005, an estimated 8.7 percent of total acre-treatments are expected
to use reduced-risk pesticides.

       Another priority is to review older pesticides in applying the FQPA safety standards. We
will  complete  pesticide reregistration eligibility decisions by 2008 (food use by 2006) and, hi
tandem with that work, meet our FQPA  statutory goal of reassessing 9,721 existing tolerances by
August 2006.  The Strategic Agricultural Partnership Initiative and the Pesticide Environmental
Stewardship Program collaborate with  USDA, States, and non-governmental organizations to
demonstrate integrated pest management  strategies that  reduce pesticide  residues  in the
environment.

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       Pesticide and pest control issues extend beyond the farm.  Public health officials and
homeowners  use pesticides to control a variety of pests, protect human health, and benefit
consumers.  Through our regulatory programs, EPA reviews all pesticides with the goal  of
minimizing pesticide exposure and risk.   For example, as of 2002, children's  exposure  to
organophosphates — an older, riskier class of pesticide — was reduced by 60 percent through the
elimination of many uses in and around the house. EPA registers antimicrobials used by public
drinking water treatment facilities and by food processing plants and hospitals to disinfect
surfaces.  Effective antimicrobials are of growing importance as  many serious disease-causing
organisms become resistant to our antibiotic procedures.  To provide environmental, public
health, and economic benefits, we will continue addressing risk from older pesticides, making
new pesticides available  and addressing emergency health or pest damage issues  flexibly and
efficiently.

       Biotechnology has presented the Agency with a range  of new  issues and  scientific
challenges as well.  Outreach activities on the subject of biotechnology such as public meetings
and scientific peer reviews of our policies  and assessments are likely to  be expanded to keep
pace with changing science and the public's demand for  information in this area.  EPA is
working closely with other  Federal  agencies  involved  in  biotechnology. Adoption  of
biotechnology has  great potential to reduce  reliance on  some  older,  more risky  chemical
pesticides, and to lower worker risks.  For example, the use  of Bt cotton has reduced the use of
other insecticides that present higher risk to wildlife.

Toxic Chemicals

       Three primary approaches comprise  EPA's strategy to prevent and  reduce risks that may
be posed by chemicals and microrganisms:

•      Preventing the introduction into  U.S. commerce of chemicals and organisms  that pose
       unreasonable risks;
•      Effectively screening the stock of chemicals already in use for potential risk;  and
•      Developing and implementing  action plans to reduce use  of and exposure to chemicals
       that have been demonstrated to harm humans and the environment.

       EPA intends to work with States and Tribes, other Federal agencies, the private sector,
and  international entities to implement this strategy  and, in particular, to  make  protecting
children and the aging population a fundamental  goal  of public health and  environmental
protection.

       TSCA requires that EPA review  all new chemicals and organisms  prior to their
production or import and be notified of significant new uses for certain chemicals  that have
already been reviewed.2  While TSCA gives EPA  a 90-day review period, new criteria, such as
preventing the introduction of persistent bioaccumulative toxics (PBTs) or considering the use of
new chemicals as potential weapons of terror, continue to emerge.  An expanded set of screening
tools will increase EPA's and industry's efficiency by using the limited data that companies
 1 Toxic Substances Control Act Section 5: Manufacturing and Processing Notices, Public Law 94-469, October 11,1976

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provide in their Pre-manufacturing Notice  (PMN) submissions to predict  potential  hazards,
exposures, and risks quickly and effectively.

       In 2005, EPA will continue to make progress in screening, assessing,  and reducing risks
posed by the 66,600 chemicals that were in use prior to the enactment of TSCA.  Thousands of
these chemicals are still used today, and nearly 3,000 of them are "high production volume"
(HPV) chemicals, produced or imported hi quantities exceeding one million pounds per year.
Approximately 300 companies and 100 consortia are voluntarily providing data covering over
2,200 of the more than 2,800 chemicals included in the HPV Challenge Program.3 EPA will
make the data publicly available  and  screen for potential hazards and risks.  We will then
identify and set priorities  for further  assessment, and determine the  need to take action to
eliminate  or effectively manage the risks identified. To support these efforts, we will draw on
data already obtained through the TSCA Inventory Update Rule4, particularly on new exposure-
related data to be provided beginning in 2005.

       In certain instances, risk-reduction efforts are targeted at  specific chemicals. Foremost
among these is the Federal government's commitment to eliminate the incidence of childhood
lead poisoning. Since  1973, we have reduced environmental lead levels by phasing out leaded
gasoline and addressing other sources of lead exposure.  Since the  1990's, EPA has focused on
reducing children's exposure to lead hi paint and dust through a regulatory  framework and by
educating parents and the medical community about prevention.5  EPA's efforts, combined with
those of other Federal agencies, has led  to a 50 percent drop hi the number of children in the U.S.
that have elevated blood levels, to approximately 400,000 children.

       EPA  is employing a multimedia,  cross-Agency  strategy to focus on other high-risk
chemicals and classes of chemicals.  For example, we are working to prevent  new PBTs from
entering commerce and to reduce risks associated with PBTs, including  mercury,  that are
currently  in  use or that have been used hi  the past.  In addition, recommendations  will be
provided to EPA hi 2004 from a panel of national experts on asbestos that will assist the Agency
hi designing strategies to address remaining asbestos risks. We will expand successful pilots to
encourage companies to retire from service large capacitors and transformers containing PCBs to
meet ambitious new targets for safe disposal by 2008.

U.S./Mexican Border

        To  reduce environmental and  human health risks along the U.S./Mexico Border, EPA
employs both voluntary and regulatory measures. Efforts include a series of workgroups that
focus on  priority  issues ranging from water infrastructure  and hazardous  waste  to  outreach
efforts focusing on communities and businesses hi the border area.  The programs were initially
conceived hi a Federal-to-Federal context. Today, it is clear that  hi both countries,  non-Federal
governments are the appropriate entities for developing and carrying out much of the work of
protecting the border environment. The experience of the last  six years has shown U.S. border
states as key participants hi workgroup activities with similar experience on the Mexico side.
3 U.S. EPA, Office of Pollution Prevention and Toxics, High Production Volume Challenge Program, HPV Commitment
Tracking System. Available at hrtp://wmfw.epa.gov/chemrtk.''viewsfch.htiri.
4 U.S. EPA website, www.epa.gov/opptitttr/iur, Title 40 CFR Part 710, Subpart A
5 See www.epa.gov/lead

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       In the past year, all border states have stressed the need for greater decentralization of
environmental authority, and in FY 1999, states and the Federal governments agreed to a set of
principles that clarify the roles of the governments and advance State and Tribal participation.
Under a  new environmental plan developed with SEMARNAP (EPA's Mexican counterpart),
completed in April 2003, the States and Tribes will play a more substantial and meaningful role
in:

•      determining how Federal border programs are developed and funded;
•      developing regional workgroups that empower border citizens; and
•      ensuring  that programs  devolve from Mexico's  Federal  government to the  Mexican
       states, with corresponding funding.

Ecosystems

       EPA will work with Federal, state, Tribal, local,  and private sector partners to achieve
our ecosystem objectives. Through continuing emphasis on partnerships and innovation, we will
protect and restore coastal water quality through the National Estuary Program  and  related
coastal watershed support.  In coordination with the Corps of Engineers, EPA will improve the
CWA Section 404 program to achieve no net loss of wetlands by avoiding, minimizing and
compensating  for  losses.    With an  emphasis on  community-based  restoration, EPA will
contribute to the  goal of no net loss of wetlands.

       Great Lakes Strategy 2002, developed by EPA and Federal, state, and Tribal agencies in
consultation  with   the public,  advances  U.S.  Great  Lakes  Water Quality  Agreement
implementation.  Its long-range vision for a healthy natural environment where all beaches are
open for swimming, all fish are safe to eat, and the Lakes are protected as a safe source of
drinking  water, is supported by  Lakewide Management  Plans (LaMPs) and Remedial  Action
Plans (RAPs) for Areas of Concern (AOCs).

       Work in the Chesapeake Bay is based on a unique regional partnership formed to direct
and  conduct restoration of the Chesapeake Bay.    Partners include Maryland, Virginia and
Pennsylvania; the  District of  Columbia; the  Chesapeake  Bay  Commission;  EPA; and
participating citizen advisory groups. A comprehensive and far-reaching agreement, Chesapeake
2000, will  guide restoration and protection efforts through 2010.  The agreement focuses  on
improving water quality as the most critical element in the overall protection and restoration of
the Bay and its tributaries.

       EPA's efforts hi the Gulf of Mexico represent a broad, multi-organizational partnership
based on the  participation of business  and industry, agriculture, local government, citizens,
environmental and  fishery interests, Federal agencies,  and five Gulf States.   The partners
voluntarily identify key environmental problems and work at the regional, state, and local level
to define and recommend solutions.

Brownfields

       Brownfields are defined  as real  properties, where expansion, redevelopment, or reuse
may be complicated by the presence or potential presence of a hazardous substance, pollutant, or

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contaminant.  Brownfields include abandoned industrial and commercial properties, drug labs,
mine-scarred  land, and sites contaminated with petroleum or petroleum products.  The Small
Business Liability Relief and Brownfields Revitalization Act (SBLRBRA), signed into law in
2002, expands Federal grants for assessment, cleanup,  and  job training.   To encourage
revitalization  and reuse of brownfield sites, the law limits the legal liability of prospective
purchasers, innocent  land  holders, and contiguous property owners related to  brownfield
properties.  In addition, the law provides for establishing and enhancing state and Tribal response
programs, which play a critical role in successfully cleaning up and revitalizing brownfields.

       Brownfields grants will continue to provide communities with vital assessment, cleanup,
revolving-loan fund, and job-training support. Brownfields assessment grants provide funding to
inventory, characterize, assess, and conduct planning  and community involvement  activities
related to brownfields.  Brownfields revolving-loan fund grants provide funding for a grantee to
capitalize a revolving loan and make subgrants to carry out cleanup activities. Cleanup grants,
newly authorized by the Brownfields Law, will fund cleanup activities by  grant recipients.
Expanded authorities  within the new law also address the potential for  limited funding for
institutional controls, insurance, and health monitoring.  EPA will  provide limited funding for
grants that provide technical assistance, training, and research  to Brownfields  communities.
EPA will also provide funding to create local environmental job framing programs, ensuring that
the economic benefits derived from Brownfields revitalization efforts remain in the  community.

       EPA  will continue to work in partnership  with  state cleanup programs to address
brownfield properties.  The Agency will provide states and Tribes with tools,  information, and
funding they  can use to develop response programs that will address environmental assessment
cleanup,  characterization, and redevelopment needs at sites contaminated with hazardous wastes
and petroleum. The Agency will continue to encourage the empowerment of state, Tribal, and
local environmental and economic development officials to oversee brownfield activities and the
implementation of local solutions to local problems.

Research

       EPA  is continuing  to ensure that it  is a source of strong  scientific  and  technical
information, and that it is on the leading edge of environmental protection innovations that will
allow achievement of its strategic objectives. The Agency consults a number of expert sources,
both  internally and externally, and  uses several deliberative steps  in planning its research
programs.  As a starting point, the Agency draws input from multi-year plans, EPA's Strategic
Plan,  available research plans, EPA program offices and Regions, Federal research partners, and
peer advisory bodies such as the Science Advisory Board (SAB)  and others. Agency teams
prioritize research areas by examining  risk and other factors  such  as  National Science and
Technology Council (NSTC) research, client  office priorities, court orders, and legislative
mandates.  EPA's research program will increase understanding of environmental processes and
capabilities to assess environmental risks to both human health and ecosystems.

       To enable the Agency to enhance science and research for healthy people,  communities,
and ecosystems through 2008, EPA will engage in high priority, multidisciplinary research
efforts to improve understanding of the risks associated with: 1) human health and ecosystems;
2) climate change; 3) pesticides and toxics; 4) computational toxicology; 5) endocrine disrupters;

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6) mercury, and 7) homeland security.  Following is a summary of the means and strategies to
meet the Agency's long-term objectives hi these areas.

       EPA's human health research represents the Agency's only comprehensive program to
address the limitations in human health risk assessment. Scientists across the Agency will use
the measurement-derived  databases, models, and protocols developed  through this research
program to strengthen the scientific foundation for human health risk assessment. In addition,
global change, loss and destruction of habitat due to sprawl and exploitation of natural resources,
invasive species,  non-point source  pollution, and the accumulation and interaction of these
effects present  emerging ecological challenges.  EPA will conduct research to  strengthen its
ability to assess and compare risks to ecosystems, protect and restore them, and track progress
toward optimal ecological outcomes.

       EPA designs its  Climate Change research program hi collaboration with the other
agencies participating in the Climate Change Science Program (CCSP).  This research focuses on
assessing potential direct and indirect effects of climate change on human health, air quality,
water quality, and aquatic ecosystems;  identifying and quantifying the uncertainties  associated
with those effects; and comparing potential climate change effects with effects caused by other
stressors.

       Research under the Food Quality Protection Act (FQPA) builds on earlier research to
reduce scientific uncertainty  hi risk assessment.   This research will provide data  needed to
develop refined aggregate and cumulative risk assessments,  develop the appropriate safety
factors to protect children and other sensitive populations,  refine risk assessments, and provide
risk mitigation  technologies.  By 2008, EPA will provide scientific tools that can be used to
characterize, assess, and manage risks associated with the implementation of FQPA.

       The Agency will conduct  additional research on pesticides and toxics that support the
Federal Insecticide,  Fungicide, and Rodenticide Act (FIFRA) and the Toxic Substances Control
Act (TSCA), designed to enhance the Agency's human health and ecological risk assessment and
risk management capabilities. Efforts will include the development of predictive tools used hi
testing requirements, research on probabilistic  risk  assessment methods, biotechnology,  and
other areas of high interest and utility to the Agency.

       To enhance  the scientific basis and diagnostic/predictive capabilities of existing  and
proposed chemical testing programs, EPA's Computational Toxicology (CT) Research Program
will use in vitro or other approaches such as molecular profiling, biomformatics, and quantitative
structure-activity  relationships.    These alternative  approaches, hi  conjunction  with  highly
sophisticated  computer-based models and research results, will greatly reduce the use of animal
testing to obtain chemical toxicity information.  To support our regulatory mandates, endocrine
disrupters research  will focus on improving EPA's  scientific understanding of exposures to,
effects of, and management of endocrine-disrupter chemicals.  Research hi direct support of
EPA's screening and testing programs  will evaluate current testing protocols and develop new
protocols to evaluate potential endocrine effects of environmental agents. The Agency will also
conduct research to determine impacts that endocrine-disrupting chemicals may have on humans,
wildlife, and the environment.
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       A  1997 EPA Mercury Study Report to Congress discussed the magnitude of mercury
emissions in the United States and concluded  that a  plausible  link  exists  between human
activities that release mercury from industrial and combustion sources in the United States and
methylmercury concentrations  in humans and  wildlife.   The  Agency will conduct  risk
management research for managing emissions from coal-fired utilities (critical information for
rule-making) and non-combustion sources of mercury; on the fate and transport of mercury in the
atmosphere; for assessing methyhnercury in human  populations; and for  developing  risk
communication methods and tools.

       EPA's Homeland Security research program will expand knowledge of potential threats,
as well as its  response capabilities, by assembling and evaluating  private  sector  tools and
capabilities.  Preferred response approaches  will be identified, promoted, and evaluated for
potential future use by first responders,  decision makers, and the public.  The Agency will be
working closely with other federal and outside organizations to fill gaps in this critical research
area.  EPA's research will focus on  preparedness, risk assessment,  detection,  containment,
decontamination and disposal  of chemical and biological attacks water systems.

STRATEGIC OBJECTIVES AND FY 2005 ANNUAL PERFORMANCE GOALS

Chemical, Organism, and Pesticide Risks

•      Ensure new pesticide registration  actions (including new active ingredients and new uses)
       meet new health standards and are environmentally safe.
•      Increase percentage of acre treatments that will use reduced-risk pesticides.
•      Decrease occurrence of residues  of carcinogenic and cholinesterase-inhibiting neuortic
       pesticides on foods eaten by children from their 1994 to 1996 average.
•      Ensure that through ongoing data reviews, pesticide active ingredients, and products that
       contain  them,  are  reviewed to assure adequate  protection for  human health and  the
       environment, taking into consideration exposure such  as subsistence  lifestyles of the
       Native Americans.
•      Standardize and validate screening assays.
•      Reduce  from 1995 levels the number  of incidents involving mortalities to nontargeted
       terrestrial and aquatic wildlife caused by pesticides.
•      Reduce exposure to and health effects from priority industrial and commercial chemicals.
•      Identify, restrict, and reduce risks  associated with industrial and commercial chemicals.
Ecosystems

•      Support   wetlands  and   stream   corridor   restoration   and   management   and
       assessment/monitoring of overall wetland health.
*      Support projects with the goal of creating, restoring or protecting 2400 acres of important
       coastal and marine habitats per year in the Gulf of Mexico.
•      Assist the Gulf States in implementing watershed restoration actions in priority impaired
       coastal river and estuary segments.
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•      Improve Great Lakes ecosystem components, including progress on fish contaminants,
       beach closures, air toxics and trophic status.
•      Improve the aquatic health of the Chesapeake Bay.
•      By 2005, working with partners, achieve no net loss of wetlands.

Community Health

•      Empower  states,  Tribes, local  communities and  other stakeholders hi  economic
       redevelopment  to  work  together to  prevent,  assess,  safely  cleanup,   and reuse
       Brownfields.
•      Through  December 2003,  the Brownfields program has awarded  552 Brownfields
       assessment grants, over 171 Brownfields revolving loan funds and 50 cleanup grants, and
       66 job training grants.
•      Assess 1,000 Brownfields properties,
•      Clean up 60 properties using Brownfields funding,
•      Leverage $1.0 billion in cleanup/redevelopment funding,
•      Leverage 5,000 j obs.
•      Train 200 participants, placing 65 percent in jobs.

Science and Research

•      Establish and maintain Centers of Applied Science to provide technical assistance and
       coordination of applied research activities addressing the latest needs of stakeholders.
•      Provide high quality exposure, effects and assessment research results that support the
       August 2006 reassessment of current-use pesticide tolerances, so that, by 2008, EPA will
       be able to characterize key factors influencing children's and other subpopulations' risks
       from pesticide exposure.
•      By 2005,  provide risk  assessors and managers with methods and tools for measuring
       exposure and effects in children.
•      By 2005, provide technical guidance for implementing and evaluating projects to restore
       riparian zones,  so that, by 2010,  watershed manages have  state-of-the-science field
       evaluation tools, technical guidance and decision-support systems.
•      Through 2005,  initiate  or submit to external review 28 human health assessments and
       complete 12 human health assessments through the Integrated  Risk Information System
       (IRIS).
HIGHLIGHTS

Chemical, Organism and Pesticide Risks

Pesticide Registration

       In 2005, the Agency will continue its efforts to decrease the risk to the public from
pesticide use through the regulatory review of new pesticides. EPA expedites the registration of
reduced risk pesticides, which are generally presumed to pose lower risks to consumers, workers,

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the ozone layer, groundwater, and wildlife.  These accelerated pesticide reviews provide  an
incentive for industry to  develop, register, and use  lower risk pesticides.  Additionally, the
availability of these reduced risk pesticides provides alternatives to older, potentially more
harmful products currently on the market.

       Biological agents are potential weapons that could be exploited by terrorists against the
United States.  EPA's pesticides antimicrobial program is working to help address this threat.
Antimicrobials  play an important  role  in public health and  safety.   EPA  is  conducting
comprehensive  scientific assessments and developing test protocols to determine the safety and
efficacy of products used against chemical and biological weapons  of mass destruction, and
registering  products as necessary.   EPA is also  developing  a timeline  for prioritizing and
implementing the tests.

Tolerance Reassessment and Reregistration

       The 1996 Food Quality Protection Act requires the reassessment of existing pesticide
tolerances by 2006. A tolerance is the amount of pesticide residue that may legally remain on a
food. Pesticide reregistration is a statutory requirement under the 1988 amendments to FIFRA.
Under the law, all pesticides registered prior to November 1984 must be reviewed to ensure that
they meet current health and safety standards.  Many pesticides must be reviewed under both
statutes. Additional program requirements and priorities within FQPA include:

•      Review of inert ingredients;
•      Reform of the antimicrobial review process;
•      Transparency of our regulatory decisions;
•      Incorporation of aggregate and cumulative risk into our reviews;
•      Special protection for infants and children;
•      Screening of pesticides for endocrine disrupting effects;
*      Enhancements to minor use program; and
•      Emphasis on registration of reduced risk pesticides

       In the Pesticides program, the main focus, our primary goal,  and our largest public
commitment is to meet the final statutory goal for completing tolerance reassessment by August
3, 2006. Additional resources of $4,400,000 are requested in this program to complete food use
reregistration          work          necessary          for          the          Agency
to complete tolerance reassessments by 2006 as required by FQPA. These resources will support
completion of  conventional pesticides,  inerts, biopesticides and antimicrobial  reviews.  The
reviews can take several years to complete, therefore FY 2005 is the last opportunity to ensure
the Agency has the resources to meet the 2006 FQPA deadline.

       In FY 2005, the Agency will continue its review of older pesticides and move forward
toward its ten-year statutory deadline of reassessing all 9,721 tolerances. EPA met its first two
statutory deadlines under FQPA for tolerance reassessment. The tolerance reassessment process
addresses the highest-risk pesticides first. Using data  surveys  conducted  by USDA, FDA and
other sources, EPA has identified a group of "top 20" foods consumed by children and matched
those with the tolerance reassessments required for  pesticides used on those foods.  The Agency
is tracking its progress hi determining appropriate tolerances for these pesticides under the FQPA

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standards. In 2005, EPA will continue its effort to reduce dietary risks to children by completing
approximately 93 percent (cumulative) of these children's tolerances of special concern.

       Through the Reregistration program, EPA reviews pesticides currently on the market to
ensure they meet the latest health standards.  Pesticides not in compliance with the standards will
be eliminated or restricted in order to minimize potentially harmful exposure.  FQPA added
considerably more complexity to the pesticide reregistration process, lengthening the "front end"
of reregistration. These  requirements include considering aggregate and cumulative risk in our
risk assessments, implementing new processes to increase involvement of pesticide users and
other stakeholders, and ensuring a reasonable opportunity for agriculture to make the transition
to new, safer pest control tools and practices.

       In 2005, EPA will work toward completing 40 Reregistration Decisions6, 400 product
reregistrations and 1000 tolerance reassessments. The Agency will also continue to develop tools
to screen pesticides  for their potential to disrupt the endocrine system.   Over the longer run,
these changes will enhance protection of human health and the environment.

       Appropriate transition strategies to reduced risk pesticides are important to the nation to
avoid disruption of the  food  supply  or sudden changes in the market that could result from
abruptly  terminating the  use of a pesticide before well-targeted reduced risk equivalents can be
identified and made available.  In FY 2005, the Agency will continue efforts to  reach more
farmers and grower groups, encourage them to adopt safer pesticides, and use environmental
stewardship and integrated pest management practices. These outreach efforts play pivotal roles
in moving the nation to the use of safe pest control methods, including reduced risk pesticides.
These programs promote risk reduction through collaborative efforts with stakeholders  to use
safer alternatives to traditional chemical methods of pest control.

Endangered Species

       Also in FY 2005, the  Agency is requesting  additional resources of $1,000,000 for the
Endangered Species program.  The Agency has been working with the Fish and Wildlife Service
and the National Marine  Fisheries  Service to improve the review process on the potential impact
of pesticides on endangered species.   Efforts include elevating the level of detail of specificity
in risk assessments to  more  realistically  predict  risks to endangered   species populations;
developing a compendium of species biology, food and habitat requirements, listing specification
and recovery efforts; ensuring implementation of applicable  label provisions; and supporting
State and Tribal entities in protecting endangered species. This funding will be used mainly by
the states for assisting in  the implementation of these improvements.

Endocrine Disruptors

       EPA's Endocrine  Disruptors Screening Program (EDSP) was established hi response to
an FQPA requirement, and to growing  concerns in the scientific community about observed
adverse effects  in wildlife and their potential relationship  to human effects.   The program's
primary objectives are to establish validated assays and scientifically-supported tools for testing
6 Reregistration Decisions include Reregistration Eligibility Decisions [REDs], Tolerance Reregistration Eligibility Decisions
[TREDs] and Interim Reregistration Eligibility Decisions [IREDs]).

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chemicals for possible adverse effects to the endocrine system. FQPA requires that "validated"
assays be used in the Screening Program, but at passage in 1996, available endocrine effects test
methods were principally experimental and none had been validated.  EPA has spent the past
several years standardizing a defined set of assays and establishing their relevance and reliability.
The long-term outcomes of the EDSP will be a baseline estimate of the degree of endocrine
disruption occurring from environmental chemicals, and a way to measure the risk.

High Production Volume Challenge Program

       EPA's  High Production Volume (HPV) Challenge Program, established in  cooperation
with industry, environmental groups,  and other interested parties, works to ensure  that critical
human  health and  environmental effects  data on approximately 2,800  HPV chemicals  are
screened and made publicly available. HPV chemicals are defined as industrial chemicals that
are manufactured or imported into the United States in  volumes of one million pounds or more
each year.  Through this program, EPA asks industry to voluntarily sponsor HPV chemicals for
screening-level testing.  Hazard test information on large volume chemicals is now more visible
through the HPV website7, giving states, regions, and Tribes accessibility and the ability to share
critical data and information.  EPA's screening efforts should be well under way by FY 2005 and
are expected to result in follow up actions on five to ten percent of the chemicals screened.

Lead Poisoning Prevention Activities

       EPA is part of the Federal effort to  address lead poisoning and elevated blood levels in
children by assisting in, and in some cases guiding, Federal activities aimed at reducing  the
exposure of children in homes with lead-based paint.  In 2005, EPA plans to proceed with a
proposed rule on the de-leading of bridges and structures. Also, because much of the remaining
incidence of lead poisoning occurs in low-income, urban areas, new public education initiatives
will focus  on these populations.  EPA also plans to step up efforts with the private sector to
increase knowledge and ability to work in a lead-safe manner as a normal part of doing business,
and plans to ensure that special  attention  is paid to private sector (non-profit and for-profit)
organizations working in high-impact areas.

Risk Management Plans

       Reducing chemical accidents  is vital  to ensure that  communities are not exposed to
hazardous  materials.  The Agency continues its efforts to help states and Local Emergency
Planning Committees (LEPCs) implement the risk management plan (RMP) program.   In  FY
2002, 398 RMP audits were conducted and the Agency continues to make steady progress in this
area.  In FY 2005, EPA will provide technical assistance grants, technical support, outreach, and
training to  state and LEPCs.  Through these activities, states, local communities and individuals
will be better prepared to prevent and prepare for chemical accidents.
7 U.S. Environmental Protection Agency, Office of Pollution Prevention and Toxics. "High Production Volume (HPV) Challenge
Program." Available online at: http://www.epa.gov/chernrtkAxJchall.htm. Washington, DC. Accessed September 9, 2003.

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Community Health

Brownfields

       The Brownfields program is designed to empower states, Tribes, local communities and
other stakeholders in economic redevelopment to work together  to prevent, assess, safely
cleanup,  and reuse Brownfields.  Through December 2003, the  Brownfields  program has
awarded 552  Brownfields assessment grants, over 171 Brownfields revolving loan funds and 50
cleanup grants, and 66 job training grants. In FY 2005, working with its state, Tribal, and local
partners to meet its objective to sustain, cleanup, and restore communities and the  ecological
systems that support them, EPA intends to assess 1,000 Brownfields properties, clean up 60
properties using Brownfields funding, leverage $1.0 billion in cleanup/redevelopment funding,
leverage 5,000 jobs, and train 200 participants, placing 65 percent in jobs.

Ecosystems

National Estuary Program

       EPA will  continue  to  support protection and restoration efforts  in high-priority
ecosystems, including  those covered by the  National  Estuary  Program (NEP).   Key NEP
activities will include continued support for assessing status and trends, and implementation
activities to restore and protect critical habitat.

State and Tribal Grants

       EPA will continue its grants to  states  and Tribes to help them protect wetlands made
vulnerable by the SWANCC ruling as part of comprehensive programs that will achieve no net
loss of wetlands, while also providing grant funding for  states and Tribes  to  assume more
decision-making authority in waters that remain subject to the CWA.

Watersheds

       Targeted geographic watershed initiatives are an important  component of community-
based environmental protection and restoration.  In the Great Lakes, EPA will target additional
resources  to clean up contaminated sediments and strive to reduce PCB concentrations in lake
trout and walleye. The emphasis in the Chesapeake Bay will be the restoration  of submerged
aquatic vegetation (SAV).  To achieve  unproved water quality and restore submerged aquatic
vegetation, Chesapeake Bay partners have committed to reducing nutrient and sediment pollution
loads sufficiently to remove the Bay and the tidal portions of its  tributaries from  the list of
impaired waters.  Continued implementation of core water programs and  efforts to address the
hypoxic zone will help to restore the waters of the Gulf of Mexico  and its tributaries.

Research

Research for Human Health and Ecosystems

       In order to improve the scientific basis for identifying,  characterizing, assessing, and

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managing environmental exposures that can  pose the  greatest health risks  to the American
public, EPA  is committed to  developing  and verifying innovative methods and models for
assessing  the susceptibilities  of  sub-populations, such  as  children  and  the  elderly,  to
environmental toxins.  Since many of the current human health risk assessment methods, models,
and databases are based on environmental risks for adults, this research is primarily aimed at
enhancing current risk assessment and management strategies and guidance to better consider
risk determination needs for children.

       In FY 2005,  research will identify modes of action by  which  specific groups of
chemicals/pesticides increase cancer or non-cancer health  risks as a function  of life stage,
develop the necessary  tools and models to characterize and conduct field studies on exposures to
high-priority  environmental chemicals in the elderly, and examine effects of  pre-existing
respiratory disease (e.g., asthma, bronchitis) on response to air pollutants.

       EPA will  continue to  generate exposure measurement and exposure factor data and
establish methods to  support  the  development,  evaluation, and enhancement of models of
aggregate exposures, dose, and effects.  This research seeks to understand the key determinants
of exposure and risk,  improve exposure measurement techniques, and develop critical data on
exposure and exposure factors. The results will be used to fill data gaps and reduce reliance on
numerous default assumptions that are currently used in the risk assessment process, which will
strengthen the scientific foundation for human health risk assessment.

       Additional research will provide regulatory decision-makers with models and guidance
that will be used for conducting assessments for cumulative exposure and risks to pollutants that
pose the greatest health risks  to the American public. Activities  for FY 2005  and beyond
include: 1) developing and refining physiologically-based pharmacokinetic (PBPK) models for
using exposure, biomarker, and PK data  hi  risk  assessments; 2)  examining promising new
biomarkers of exposure and effects that can  be used hi future exposure and epidemiological
studies, such as the National  Children's Study (NCS); and 3) sponsoring research that will
provide a framework for structuring evaluations of the toxicity of complex chemical mixtures for
use in human and environmental health assessments.

       In order to balance the growth  of  human activity  with the need to  protect the
environment, it is important to understand the current condition of ecosystems, what stressors are
changing that condition, what the effects may be from those changes, and what can be done to
prevent, mitigate, or adapt to those changes.  In FY 2005, the Environmental Monitoring and
Assessment Program (EMAP)  will  continue to be a major contributor to EPA's environmental
indicators report and will be instrumental  hi improving state contributions  to the Agency's bi-
annual report to Congress on the condition of the Nation's waters.  Baseline ecological condition
of Western streams will be determined so that, by 2008,  a monitoring framework is available for
streams and small rivers in the  Western U.S. that can be  used from the local to the national level
for statistical  assessments of condition and change to ecological resources.

       Research will also provide technical guidance for implementing and evaluating projects
to restore riparian zones, which are  critical landscape components for the restoration of aquatic
ecosystems and water quality.  Research  will include: (1) development, demonstration and
technical support for  monitoring designs,  indicators, and interpretive analysis tools to allow

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States and Tribes to monitor and report the condition of water resources; (2) development of
approaches to identify and test the linkages between probability-based and targeted water quality
monitoring programs, landscape characteristics and the probability of water body impairment;
(3) development of monitoring methods and decision support systems to improve our ability to
identify probable causes of ecological impairment in streams; and (4) development of monitoring
approaches to evaluate the effectiveness of programs to manage and restore aquatic resources in
reaching performance objectives at site, regional, state and national scales.

       The Agency will  continue research to assess the impacts of invasive species  on U.S.
ecosystems,  including monitoring for invasive species as part of the Western EMAP program
and the National Coastal Assessment, modeling zebra  mussel influence on nutrients hi Great
Lakes Ecosystems, and developing a model for predicting where certain species will invade next.

       Research efforts in FY 2005 will continue to build on the Agency's FY 2004 Clear Skies
Research Initiative to identify where emerging control technologies and continuous measurement
of mercury combustion sources  can facilitate or optimize mercury emissions reduction.  This
research will also give support  to the recent Utility Mercury Reductions proposal  signed by
Administrator Leavitt on December 15, 2003.

       EPA will increase efforts to implement information  quality guidelines.  While the
Agency has  extensive procedures in place to ensure that the information it disseminates meets
high standards, further actions will be taken to ensure that such information is current and fully
complies with the guidelines. In FY 2005, the Agency  will establish an extramural mechanism
to assist Regions in identifying external peer reviewers and securing their advice and assistance.

Climate Change Research

       EPA's  Climate Change Research Program supports one of six Administration FY 2005
Interagency  Research and Development Priorities - Climate Change Science and Technology.
All activities  to  assess potential impacts  of global climate  change will be developed and
coordinated  with the Climate Change Science Program (CCSP). Attention is expected to be
given to assessing the potential  consequences of global change - including climate  variability
and change,  land use changes, and UV radiation — on air quality, water quality, ecosystem health,
and human  health.  The Agency will also assess potential adaptation strategies for  building
resilience to global change, while responding to both potential risks and opportunities.

Research for Pesticides and Toxics  •

       EPA is continuing to build on research launched under the FY 2003  Biotechnology
Initiative focusing on plant-incorporated protectants (PIP) crops.  In FY 2005, the Agency will
deliver a final  report outlining the state-of-the-art hi tools for monitoring resistance development
in the field and the use of target pest ecology to refine Insect Resistance Management strategies,
as they are determined in risk assessment practice.  This report will focus on data gaps in pest
biology, ecology, and population dynamics related to insect resistance development. The report
will also lend insight into the development of appropriate tools to identify and measure resistance
hi field populations of target pests.
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Research for Computational Toxicology

       EPA's  Computational  Toxicology  research  program  supports the  Molecular-level
Understanding of Life Processes activity, one of the Administration's six FY 2005 Interagency
Research and Development Priorities, by employing the use of genomic information and modern
computational techniques to enable better management of chemicals that may be present in the
environment.  In FY 2005, EPA will  invest additional resources hi computational toxicology
(CT) research - 4.0 FTE and $4,080,093.  The FY 2005 CT investment will build upon the
current program by accelerating the use of bioinformatics and other computational approaches
and apply the program to address other high priority regulatory issues, including the assessment
of important classes of environmental  agents.  In FY 2005, the Agency will  begin to develop
computational models that could be used to help prioritize anti-microbial agents and inerts for
screening and testing requirements.

Fellowships

       The  STAR fellowship program is the only Federal fellowship program designed
exclusively  for students  pursuing advanced degrees  in  the  environmental sciences  and
engineering. In FY 2005, the Agency will invest additional resources to support STAR graduate
fellowships.  This additional investment will extend the purpose of developing high quality
scientists  across  multiple  disciplines,  including the  biological and  physical  sciences,
mathematics, computer sciences,  and engineering that will benefit EPA, the private sector, and
the entire Nation.

       In FY 2005, EPA will also invest additional resources to support Association of Schools
of Public Health  (ASPH)  fellowships.  This investment will  further extend the  important
contribution to public health issues that ASPH fellows provide within EPA, thereby helping EPA
to better design its programs for human health outcomes.  Under a cooperative agreement with
the ASPH,  eligible fellows are placed  in EPA labs, centers, and offices to conduct projects that
contribute to EPA's public health mission.
Research for Homeland Security

       EPA's Homeland Security  research program  will continue to  conduct critical cross-
cutting  research to provide near-term, appropriate, affordable,  reliable, tested, and  effective
technologies and  guidance. Work will focus  on preparedness,  risk  assessment,  detection,
containment, decontamination, and  disposal of chemical and biological agents used in attacks on
water systems.  New work will be initiated hi the  decontamination and clean up of biological
agents.

EXTERNAL FACTORS

       The ability of the Agency to achieve its strategic goals and objectives depends on several
factors over which the Agency has only partial control or influence.  Partnerships, voluntary
cooperation, international collaboration, industry,  economic  influences^  industrial  accidents,
natural  disasters, litigation, and  legislation play critical roles, affecting the Agency's results.
Changes in the  focus,  level of effort, or status of any of these components could  affect the
success of the Agency's programs under Goal 4.  Consequently, EPA must consider these factors
as it establishes annual performance measures and targets.

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       EPA assures the safe use of pesticides in coordination with the USDA and FDA, who
have responsibility to monitor and control residues and other environmental exposures.  EPA
also works with these agencies to coordinate with other countries and international organizations
with which the United States shares environmental goals. The Agency employs a number of
mechanisms and programs to assure that our partners in environmental protection will have the
capacity to conduct the activities needed to  achieve the objectives.  However, as noted, EPA
often has limited control over these entities.  Much of the success of EPA programs depends on
the voluntary cooperation of the private sector and the public.

       Other factors that may delay or prevent the Agency's  achievement of the  objectives
include lawsuits that delay  or stop the planned activities of EPA and/or State partners, new or
amended legislation, and new commitments  within the Administration.  Economic growth and
changes in producer and consumer behavior could also have an influence on the Agency's ability
to achieve the objectives within the tune frame specified.

       Large-scale accidental releases,  such as pesticide spills, or rare catastrophic natural
events (such as hurricanes or large-scale flooding) could  impact  EPA's  ability to achieve
objectives in the short term. In the longer term, new technology, newly identified environmental
problems and priorities, or unanticipated complexity or magnitude of pesticide-related problems
may affect the time  frame for  achieving the objectives or long-term goals.  For example,
pesticide use is affected by unanticipated outbreaks of pest infestations and/or disease factors,
which require EPA to review emergency uses in order to preclude unreasonable risks  to the
environment. While the Agency can provide  incentives for the submission of registration actions
such as reduced risk and minor uses, EPA does not control  incoming requests for registration
actions. As a result, the Agency's projection of regulatory workload is subject to change.

       Progress in reducing  risks is often highly dependent on industry's response to EPA
assistance and initiatives.  EPA has little direct control over  the pace and volume at  which
industry develops new chemicals or pesticides; we primarily concentrate on providing industry
with tools, such as the PBT Profiler and Pollution Prevention Framework, or incentives, such as
the priority review of reduced-risk pesticides, to help screen out high-risk chemicals before they
are submitted for EPA review.  These tools  and incentives have been  shown to be effective in
gaming cooperation from industry and meeting our long-term and annual goals.  In addition,
voluntary programs, such as the HPV Challenge Program, operate exclusively on the basis of
industry  commitments for participation.  Industry's response  to such initiatives affects the
Agency's ability to achieve effective new chemical screening efficiently.

Research

       Strong science is predicated on the  desire of the Agency to make human health and
environmental decisions based on high-quality scientific data and information.  This  challenges
the Agency to perform and apply  the best  available science  and technical analyses when
addressing health and environmental problems. Such a challenge moves the Agency to a more
integrated, efficient, and effective approach of reducing potential risks.  As long as high quality
science is a central tenant  for actions taken by the Agency, then external factors will have a
minimal impact on the goal.
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EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLANS

       In  addition to the newly established efficiency measures, the  Office  of Pesticide
Programs is creating a measures workplan to identify and plan for the development of risk-based
outcome measures and indicators for both human health and the  environment.  The data and
information for meaningful pesticides measures require coordination and cooperation with other
organizations.  The workplan will identify these partnerships and lay out the necessary steps for
developing outcome measures and indicators for program goals.
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                         Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                        Healthy Communities and Ecosystems

OBJECTIVE: Chemical, Organism, and Pesticide Risks

      Prevent and reduce  pesticide, chemical, and genetically engineered biological organism
risks to humans, communities, and ecosystems.

                                Resource Summary
                               (Dollars in Thousands)

Chemical, Organism, and Pesticide Risks
Credit Subsidy Re-estimate
Environmental Program & Management
Science & Technology
Building and Facilities
State and Tribal Assistance Grants
Inspector General
Total Workyears
FY2003
Actuals
$345,298.1
$905.5
$307,746.6
$4,939.6

$23,630.5
$1,334.9
1,819.1
FY2004
Pres-. Bud.
$364,126.3
$0.0
$327,982.7
$5,379.6
$6,827.6
$22,236.0
$1,700.4
1,837.0
FY2005
Pres. Bud.
$383,305.4
$0.0
$346,346.5
$5,469.4
$7,375.2
$22,367.0
$1,747.3
1,859.8
FY 2005 Req. v.
FY 2004 Pres Bud
$19,179.1
$0.0
$18,363.8
$89.8
$547.6
$131.0
$46.9
22.7
                                 Program Project
                               (Dollars in Thousands)

Children and other Sensitive Populations
Categorical Grant: Pesticides Program
Implementation
Pesticides: Field Programs
Congressionally Mandated Projects
Homeland Security: Preparedness, Response,
and Recovery
Categorical Grant: Lead
Commission for Environmental Cooperation
Pesticides: Registration of New Pesticides
Pesticides: Review / Reregistration of Existing
Pesticides
POPs Implementation
State and Local Prevention and Preparedness
Toxic Substances: Chemical Risk
Management
Toxic Substances: Chemical Risk Review and
Reduction
Toxic Substances: Lead Risk Reduction Prgm
FY 2003
Actuals
$365.2
$8,492.9
$19,119.3
$3,929.8
$686.3
$15,137.6
$304.4
$42,458.9
$50,922.0
$2,090.9
$10,273.0
$10,464.4
$42,212.4
$11,263.0
FY 2004
Pres. Bud.
$0.0
$8,536.0
$23,246.9
$0.0
$2,327.4
$13,700.0
$393.8
$35,981.6
$64,314.4
$2,224.4
$12,508.1
$9,243.1
$45,536.2
$14,832.9
FY2005
Pres. Bud.
$116.0
$8,667.0
$24,703.2
$0.0
$2,339.8
$13,700.0
$417.1
$45,310.2
$60,471.0
$2,235.4
$12,134.8
$9,514.2
$45,878.8
$11,082.6
FY 2005 Req. v.
FY 2004 Pres Bud
$116.0
$131.0
$1,456.3
$0.0
$12.4
$0.0
$23.3
$9,328.6
($3,843.4)
$11.0
($373.3)
$271.1
$342.6
($3,750.3)
                                     IV-22

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Children and other Sensitive Populations
TRI / Right to Know
International Capacity Building
Administrative Projects
TOTAL
FY2003
Actuals
$365.2
$14,687.6
$2,109.8
$110,780.6
$345,298.1
FY 2004
Pres. Bud.
$0.0
$14,690.6
$1,541.2
$115,049.7
$364,126.3
FY2005
Pres. Bud.
$116.0
$15,940.9
$1,804.7
$128,989.7
$383,305.4
FY 2005 Req. v.
FY 2004 Pres Bud
$116.0
$1,250.3
$263.5
$13,940.0
$19,179.1
FY 2005 REQUEST

Results to be Achieved under this Objective

       A key component of this objective is protecting human health and the environment by
identifying, assessing, and reducing the risks presented by the thousands of chemicals on which
our society and economy have come to depend.  These,include the pesticides we use to  meet
national and global demands for food and the industrial and commercial chemicals ubiquitous in
our homes, our workplaces, and the products we use. EPA also addresses the risks associated
with potential chemical releases, working in collaboration with local community planners as well
as States. Accessible information is critical to good planning and the Agency will focus efforts
on improved tools for understanding chemical reporting from facilities.  On the international
front, reducing transboundary movement of chemicals of concern remains a top priority.

       This request  highlights EPA's efforts to improve the prevention  and reduction of
pesticide risks to humans, communities and ecosystems, including protecting the safety of our
food supply with special emphasis on the protection of infants and children through regulatory
and voluntary means.  The Agency will continue partnerships with the United States Department
of Agriculture (USD A), the Food and Drag Administration (FDA), the Department of Health and
Human  Services (HHS),  the  international  Organization  for Economic  and  Cooperation
Development (OECD) and others to conduct a smooth transition to safer pest management  for
food crops.  This effort will include engaging and sharing information  with stakeholders, to
develop and implement transition strategies. EPA will continue to ensure that the best available
science is incorporated into the implementation of the Food Quality Protection Act (FQPA).

       Some pesticides currently on the market are suspected human carcinogens, neurotoxins or
endocrine disrupters and thus may pose significant health concerns, especially to children and
other susceptible populations. FQPA set strong safety requirements to protect human health and
the environment and provides opportunities to  positively  impact  agricultural  production
techniques and pesticide user behavior, lessening the overall risk of pesticide use.  FQPA further
requires that the Agency review pesticides on a periodic basis to ensure that those registered for
use meet the most current health standards. Through this process, EPA will ensure that when
properly used, pesticides maintain the "reasonable certainty of no harm" standard.8   The review
of existing pesticides  through  reregistration  and tolerance reassessment combined with  the
availability of safer pesticides through registration continues to improve the risk picture  for
agricultural and other pesticide uses.
 ! FFDCA, Sec. 408 (b)(2)(A)
                                        IV-23

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       Attainment of this objective will yield  human health and  environmental benefits by
providing for appropriate screening, testing and risk management  responses to chemicals of
potential concern, including those specially targeted for risk reduction actions. Expected results
include preventing the entry into commerce of chemicals posing unreasonable risk to human
health  or the environment, and either reducing or effectively managing risks associated with
certain existing high production volume chemicals.   Particular emphasis will be placed on
reducing risks to  sensitive populations such as children. EPA expects to leverage public and
private  resources  by working with external  partners  to achieve efficiencies in program
administration and execution.

       To reduce or eliminate the potential risks associated with chemical releases, EPA must
first identify and  understand potential chemical risks and releases.  EPA will use information
generated by the Emergency Planning  and Community  Right-to-Know  Act and  the  Spill
Prevention Control and Countermeasure program to supplement data on potential chemical risks
and to  develop voluntary initiatives and activities aimed at high-risk  facilities and/or geographic
areas.  To meet its objective of protecting human health,  communities,  and ecosystems from
chemical risks  and releases through facility risk  reduction efforts and building  community
infrastructures, EPA intends to complete 400 risk management plan (RMP) audits in 2005.

       The majority of this work will be accomplished through our partnerships.  EPA will work
with communities to provide chemical risk information on local facilities.  The Agency will also
assist states  and communities in understanding how these chemical risks could affect them and
how to reduce those risks and prepare to address and mitigate risks should a chemical release
occur.

       EPA has set as a strategic target that by 2008, 50 percent of local communities or LEPCs
will have  incorporated  facility risk  information  into their  emergency  preparedness  and
community right-to-know programs. EPA will collect information from LEPCs  during 2004 to
determine the extent to which they have incorporated such facility risk information into their
emergency preparedness  and community right-to-know programs.  This information will  serve
as a baseline from which EPA will track progress toward this strategic goal. EPA will work with
the Federal Emergency  Management  Agency (FEMA) and  the  Department of Homeland
Security (DHS) to provide LEPCs as Citizen Corps Council. EPA will also continue an initiative
to improve and enhance emergency preparedness and prevention in Tribal communities.

       EPA will  continue to reduce Toxic  Release  Inventory (TRI)  reporting burdens on
industry and improve  TRI data quality  by distributing its new software  tool, "TRI Made-Easy
(TRI-ME).9" The Agency expects to further increase the percentage  of TRI reporting forms that
are submitted in  electronic format.  EPA will continue  to  refine and expand the public's
understanding of TRI data by improving data access tools such as the "TRI Explorer." Through
these electronic tools,  EPA is better positioned to allow more timely access to important facility
information  which helps environmental decision making and supports first responders hi the
critical first moments after an accident or security event occurs.

       Many human  health and environmental pollutants  to  the  American public originate
outside the  U.S.  and  can travel  easily across borders via rivers, air and ocean currents, and
9 U.S. EPA, Office of Environmental Information, Toxic Release Inventory Website, http://www.epa.gov/tii, Date of Access:
January 2, 2004.

                                        IV-24

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migrating wildlife.   Even in the remote Arctic,  industrial chemicals such as polychlorinated
biphenyls (PCBs) have been found in significant levels in the tissues of local wildlife. Further,
differences in public health standards can  contribute to global pollution.   A chemical  of
particular concern to one country may not be controlled or regulated in the same way by another.
Harmonization of national standards  can assist hi reducing global pollution by increasing the
number of health and ecological effects any single country may be examining. It may also lower
barriers to trade and commerce as countries accept the validity of another's screening methods or
other standards.

       EPA's international activities under this objective give priority to selected chemicals and
certain heavy metals which can persist, bioaccumulate and are toxic (PBTs).   PBT  chemicals
break down slowly in the environment, and elemental metals never degrade.  For this reason,
PBTs, including persistent organic pollutants (POPs), are very mobile, moving great distances
along wind and ocean currents, thereby posing serious risks to human health and the ecosystem
in the U.S. and world-wide.  PBTs also enter the food chain accumulating in shellfish,  fish, birds
and animals that are exposed directly or indirectly through their diets.  Certain populations are
especially vulnerable. Examples include (1) coastal and indigenous populations with subsistence
diets heavy in fish or  marine mammals, which may contain toxins  and mercury, and (2)
endangered wildlife which consume and biomagnify PCBs, DDT and other harmful PBTs.10

       EPA  is working to  reduce potential risk from PBTs  on several  international  fronts
including the following:

•      reducing the release and transboundary movement of PBTs;
•      reducing the levels of exposure to humans and adverse effects to wildlife that may result
       from these PBTs;
•      assisting additional countries around the world to monitor releases and also manage then-
       use of PBTs.

       For each of these efforts,  the  Agency targets the highest risk or greatest concerns first.
For example, PCBs, dioxins/furans, DDT, other POPs pesticides, and mercury pose the greatest
concern.  Thus, in each negotiated agreement or offer of technical assistance,  these substances
take priority. In addition, releases from certain countries of these pollutants are more likely to
impact vulnerable U.S. populations, such as in the Arctic, and thus receive priority consideration.
Examples of such countries include those hi the Caribbean and Central America, Russia, China,
India and Mexico.

       This objective will be accomplished through the following program/projects:

Pesticides: Registration of New Pesticides

       Pesticide licensing involves  both registration of new chemicals and the review of older
chemicals.11   Under the Registration program,  EPA makes registration decisions about new
pesticides after  extensive review and evaluation of studies and data xm human health  and
ecological effects.  As part of the process, the Agency analyzes data and sets a tolerance level for
10 U.S. Environmental Protection Agency. "PBT Chemical Program: Frequently Asked Questions." Available only through the
Internet: http://www.epa.gov/pbt/faq.htm.

                                         IV-25
11 FIFRA Sec 3; FIFRA Sec 4 (i) (5)

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each  crop or  crop grouping (use) the registrant requests  for  the  pesticide. The pesticide
registration program provides numerous benefits, including worker  protection, public health
assurance, safe food, and protection of the environment from pesticide risk.  Additionally, the
need  for  keeping a growing population adequately and  safely  fed, while at the  same time
protecting this population from pesticide risk, results hi more investment in new science and
alternative pest control techniques and technologies. The Registration program gives priority to
accelerated processing of reduced risk pesticides which may substitute for products  already on
the market, thus giving farmers and other users new tools that are better for human health and the
environment.

       There are many types of registration requests submitted by industry for EPA approval.
These include requests for registration of new active ingredients, new pesticides that may simply
be new formulations of ingredients already registered ("me-toos"), new uses that add a crop type
to the approved uses of the registered pesticide and minor uses for low volume crops.12

       During the last several years, the  Agency has, engaged  the  public and the scientific
community in  developing and reviewing nine science policies that shape EPA's approach to
screening pesticides.  While all of the policies  are significant,  the requirements in FQPA to
consider cumulative and aggregate risk and the ten-fold safety factor for children's health have
important ramifications for risk assessments of many chemicals.

       Cumulative   risk   requires  that   EPA
consider the combined effects  of exposures  to
multiple chemicals sharing a common mechanism
of  toxicity.    Aggregate  risk  brings  issues  of
residential exposures and drinking water residues
into the equation.  The extra ten-fold safety factor
impacts  risk  assessments  affecting   children's
health.  A lower factor can be used, ". . . only if,
on  the basis of reliable data, such margin will be
safe for infants and children."14
       In  FY 2005,  the  Agency  will  continue
applying  its cumulative risk policy to pesticide
registration and reregistration decisions. EPA will
continue  to actively  encourage and engage  the
pesticide  industry,  farmers  and  the public  to
participate in the implementation of FQPA. EPA
uses common-sense strategies for reducing risk to
acceptable levels while retaining pesticides of the
greatest public value, including those employed in
minor uses  and  integrated  pest  management
needs. In FY 2005, EPA will continue to work with the pesticide industry and farmers to explore
new pest management approaches  and to provide a reasonable phase-put period for canceled
pesticides.  EPA will also continue its stakeholder consultation process through regular meetings
     Active and Inert Ingredients
                                  13
Pesticide products contain both "active" and "inert"
ingredients. The Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA)  has defined the  terms
"active ingredient"  and "inert ingredient," since
1947.  An active ingredient is one that prevents,
destroys, repels or mitigates a pest,  or is a plant
regulator, defoliant, desiccant or nitrogen stabilizer.
By law, the active ingredient must be identified by
name on the label together with its percentage by
weight.

An inert ingredient is simply any ingredient in the
product that is not intended to affect a target pest.
For example, isopropyl alcohol may be an active
ingredient  and antimicrobial  pesticide  in  some
products; however, in other products, it is used as a
solvent and may be considered an inert ingredient.
The law does not require  inert ingredients to be
identified by name and percentage on the label, but
the  total percentage of such ingredients must be
declared.
 12 FIFRA Sec 3
 13 FIFRA Sec 2(a); FIFRA Sec 2(m)
 14 FFDCA Sec 408(b)(2)(C)
                                           IV-26

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with the Committee to Advise on Reassessment and Transition (CARAT).  The CARAT is an
advisory body composed of environmental/public interest groups; pesticide industry and trade
associations;  pesticide user,  grower, processor and commodity organizations;  public  health
organizations, including  children's health representatives; Federal  agencies; State,  local and
Tribal governments; academia;  consumers and the public  established to  ensure stakeholder
participation in FQPA issues.

       States and industry submit requests to EPA for  registration actions to  meet rapidly
changing  or  emerging needs, including petitions for temporary uses of pesticides to meet
emergency conditions, and for research purposes. The Agency allows for the unpredictability of
agricultural conditions and pest outbreaks and takes action to meet emerging needs.  These
actions include issuance of emergency exemptions under FIFRA sec. 18, which allows the use,
for a limited time, of a pesticide not registered for that specific purpose. Emergency conditions
could include controlling a new pest or the spread  of a pest to new  areas, or controlling an
outbreak of a pest that poses a  public health risk, such as the West Nile virus  spread  by the
migration of mosquitoes.  FIFRA addresses other special needs, including provisions to register
products  by  States for  specific  local uses  not  Federally registered  and provisions  for
experimental use permits (under FIFRA sec.5), which allow pesticide producers to  test new
pesticide  uses outside the laboratory to generate  information to  apply for amendments to
previously approved pesticides  (e.g., to reflect label  revisions or  changed formulations for
products already registered).

       The Agency and USDA work  collaboratively to ensure that  minor use registrations
receive appropriate support.  EPA policy has  defined minor uses as pesticide usage  on crops
grown on less than 300,000 acres. Minor crops account for about  40 percent of the  total
agricultural sales for the United States.  Although minor use pesticides are of major significance
in agricultural production and to growers and consumers, they produce relatively little revenue
for thek manufacturers, considering the cost of maintaining these registrations.  Without these
small-scale but vital pesticide uses, many of the fruits, vegetables, and ornamentals grown in the
United States, worth billions  of dollars, could not be produced successfully.  In FY 2005, EPA
and  USDA will continue to work  closely to meet the need for newer, reduced risk pesticides
registered  for minor  uses.   As needed, the Agency uses the data collected under USDA's
Interregional Research Project No. 4 (IR-4) program to establish tolerances for minor uses and
provides priority status for registrations for vulnerable crops and minor agricultural uses.  IR-4
helps minor crop producers obtain tolerances and registrations for pest control products.

       In FY 2005, EPA will continue to provide incentives to the pesticide industry to decrease
risk  levels from pesticides through the  expedited regulatory review of reduced risk pesticides,
including  biopesticides. Reduced risk criteria include pesticides with reduced toxicity, potential
to displace other chemicals posing  potential  human health concerns,  reduced  exposure to
workers, low toxicity to non-target  organisms, low potential for groundwater contamination,
lower use rates than alternatives,  low pest resistance potential,  or high compatibility  with
integrated pest  management and  efficacy.15   The  Agency is committed to expediting the
registration of additional alternative products and in FY 2005, and expects to register four new
conventional reduced risk pesticides.
15 Pesticide Regulation (PR) Notice 97-3, September 4,1997

                                         IV-27

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                                                                 Kids need Protection

                                                      Children are at a greater risk for some pesticides for a
                                                      number of reasons. Children's internal organs are still
                                                      developing  and  maturing  and their  enzymatic,
                                                      metabolic, and immune systems may provide less
                                                      natural protection than those of an adult. There are
                                                      "critical  periods"  in  human development when
                                                      exposure to a toxin can permanently alter the way an
                                                      individual's biological system operates. Children may
                                                      be exposed more to certain pesticides because often
                                                      they eat different foods than adults.

                                                      For instance, children typically consume  larger
                                                      quantities of milk, applesauce, and orange juice per
                                                      pound of body weight than do adults.  Children's
                                                      behaviors, such as playing on the floor or on the lawn
                                                      where pesticides are commonly applied,  or putting
                                                      objects  in their mouths, increase their chances of
                                                      exposure to pesticides.

                                                      Adverse  effects of pesticide exposure range from
                                                      mild symptoms of dizziness and nausea to serious,
                                                      long-term   neurological,   developmental   and
                                                      reproductive disorders.	
       EPA  is  moving  deliberately to  minimize
exposure from currently marketed pesticides with the
highest potential to cause adverse effects on human
health and the environment.  In FY 2005, using the
best available science and  incorporating stakeholder
concerns, EPA will continue to reduce risk from these
pesticides through implementation of our decisions in
the field, encouraging  development,  and expediting
registration of alternatives.  The Agency is especially
conscious of the  potential impacts on  minor crop
growers and integrated pest  management programs
and  will continue   to  work  with  growers  and
registrants to focus attention on those situations where
limited crop protection alternatives exist.  Because
FQPA emphasizes the need to protect children from
adverse effects of pesticide  exposure, EPA is putting
emphasis on pesticides used on the foods children
commonly eat and,  through  regulatory means,  will
continue  to  seek reduction of pesticide  residues on
these foods.

       Homeland Security continues to be a concern
for the public and the Agency. Using CDC's category A list of possible bio-agents as a starting
point, the Agency proposes  reviewing at least three additional threats hi the short-term. Based
on experience with anthrax, reviews for other bio-agents would require developing new models
and protocols  for defining  a  reasonable standard  of  efficacy and determining  whether
substantially different multiple pathways should be addressed.

       For the first time as  part of the FY 2004  budget process, the Registration Program was
rated under OMB's PART process.  In the FY  2005 re-evaluation, the program's score was rated
at 60 percent.  As a result of the evaluation, OMB has recommended that the program develop
long  term risk-based outcome  goals, develop  more challenging targets,  and assure  more
independent evaluations  are  conducted.   The program is  currently  working to address the
recommendations.

Pesticides: Review/Reregistration of Existing Pesticides

       The FY 2005 request  addresses the review of older pesticides as well as some of the
scientific  effort  involved  in  identifying  potential   endocrine  disrupting   chemicals.   The
reregistration and the tolerance reassessment programs look at older pesticides and review their
safety hi light of the latest science and the safety standards mandated by FQPA. In FY 2005, the
Agency is requesting additional funding of  $4,400,000 to support meeting the  2006 FQPA
statutory  deadline.  Tolerance  reassessment  and reregistration reviews involve  considerable
resources and can take several years to review, making 2005 the last opportunity to ensure EPA
has the resources to meet this key deadline.
16 http://www.epa.gov/pesticides/factsheets/kidpesticide.htm
                                           IV-28

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       Pesticides, by their very nature, are designed to kill pests, so the pesticide regulatory
programs must provide a balance on the potential risks resulting from the use of pesticides and
the benefits that they provide to determine their acceptability given current scientific knowledge.
This acceptability must result in a reasonable certainty of no harm to human health and the
environment.  This is accomplished through various means, including risk mitigation measures
such as label changes  and modification in the ways pesticides are applied (use of protective
equipment, farmworker re-entry level changes, application rates and frequency, etc.).  The
regulatory decisions, along with voluntary actions encouraged through education and outreach,
provide benefits such as public health safety, safe and abundant food supply, worker safety, and
protection of our land and groundwater from pesticide contamination.

       During the Reregistration and the Tolerance Reassessment processes, EPA reviews data
and studies submitted by registrants in support of the reregistration or the  approved use of a
pesticide.  During this review, the Agency conducts a risk assessment that forms the basis for the
Agency's decisions  and determines the safe residue (tolerance) that may remain on the food
product for a food use pesticide.  Risk assessments involve a series of sophisticated analyses of
the potential  health and environmental effects resulting from exposure to a chemical through
various means. As  discussed previously, FQPA brought a number of analytic refinements and
considerations into these risk assessments.

       EPA will continue to review pesticides currently on the market to assure the public of
their continued safety.  Pesticides found  not  in compliance will be  eliminated or otherwise
restricted to reduce harmful exposure.  The issuance of a Reregistration Eligibility Decision
(RED) summarizes the  health and environmental effects findings during the reregistration review
of the  chemical. These findings determine whether the products registered under this chemical
are eligible for reregistration.  In 2005, the Agency will complete  32  REDs and an additional
eight Interim REDS/Tolerance REDs.  EPA plans to complete issuing REDs  for food use active
ingredients by FY 2006 and for non-food use active ingredients by FY 2008.   The review of
existing inert ingredients will also be completed by FY 2008.

       There are 9,721 tolerances to be reassessed. The final tolerance reassessment deadline
requires reassessment of 100 percent of these tolerances by August 2006.  In FY 2005, the
Agency will  continue its  reassessment  of these tolerances,  completing approximately  a
cumulative 88 percent.

       EPA obtains data from a wide variety of sources including USDA surveys on types and
quantities of foods people eat, FDA residue monitoring, and United States  Geological Survey
information on pesticide levels in ground, surface and drinking water.  The risk assessment and
adjunct analyses determine the outcomes for the tolerances on food. FQPA requires assessment
analyses, looking at both aggregate  risk  and  cumulative  risk for pesticides with  a common
mechanism of toxicity.  Draft risk assessments go through both scientific  peer review and a
public review process.   The science and policies behind these assessments is complex and the
standards  developed will impact many pesticides on the market. In particular, the cumulative
risk policy will impact  chemical groups of pesticides such as organophosphates and carbamates.
In FY 2005, as EPA obtains information and obtains new research results, EPA will update and
enhance the  existing cumulative risk policy  as  appropriate  to make  sure risk assessments
maintain pace with advancing science.
                                         IV-29

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       The  cumulative  risk policy is  affecting the  decisions on  many older, less expensive
pesticides, and resulting changes may have an impact on farmers' available choices in the use of
pesticides.  As  an example,  the Agency  reviewed  a group of higher risk pesticides,  the
organophosphates, which, because of their wide use, heavily affected the farming community. In
2005, the Agency will review another group of high-risk pesticides, the carbamates. Carbamates
are a broad-spectrum, older, less expensive, class of pesticides, and include insecticides used for
mosquito control.  To address the issues around replacement and review of these widely used
pesticides, the Agency and USDA collaborated in development and implementation of a review
process which greatly expanded public participation.  In 2005, this process will continue to be
reviewed, improved and expanded as necessary as we continue our review of other groups of
high risk, older pesticides.

       Once the reregistration or tolerance reassessment analysis is performed, findings may call
for modifications in ways  the pesticides are used, in order to reduce risks.   Options for  risk
reduction range from revocation of the tolerance to modifications hi use such as farmworker re-
entry  intervals  or application  rates.  For example,  the  pesticide  could be  applied in  lower
quantities, or less frequently, or at a greater distance from water bodies.

       Protecting children's health is of central concern for EPA, and FQPA further emphasized
this concern, requiring an additional safety factor to be applied to certain pesticides to adjust for
children's higher sensitivity to  chemical exposure unless reliable data indicate that a different
margin of safety for the pesticide residue is safe for infants and children. As such, EPA has
identified and given priority to the tolerance reassessments that affect the top 20 foods eaten by
children. The Agency projects completion of 93 percent of this set of tolerance reassessments in
FY 2005.  Another, more  general FQPA approach  to reducing risks more quickly is to give
priority to the review of tolerances or tolerance exemptions that appear to pose the greatest  risk
to public health.  As a result, EPA  divided all pesticide chemicals into three priority groups,
published in the Federal Register in 1997.

       The  highest risk pesticides are in Priority Group 1, which includes organophosphates,
carbamates, and probable carcinogens,  among  other high-risk  chemicals,  and totals  5,543
tolerances.  Group 2 includes some carcinogens and  other tolerances, and Group 3 includes the
remaining pre-FQPA and  post-1984 pesticides.  Some tolerances  in all groups have been
reassessed  as part of the work already  underway in the reregistration program.17  Status of
reassessments is as follows:
17 EPA FRN "Raw and Processed Food Schedule for Pesticide Tolerance Reassessment; Notices" Aug 4,1997

                                         rv-30

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                         Status of Tolerance
               Reassessments by Priority Group,
                                  9/30/03
         6000-1
         5000
         4000
         3000
         2000
         1000
         3947
                           1075
  1604
                    Group 1
                         Group 2
Group 3
                              I Remaining D Completed
       Status of Tolerance Reassessment by Priority Group (as of 9/30/03)

•      Group 1:  3,947 reassessments completed out of 5,543 (71 percent reassessed  and 29
       percent remaining)
•      Group 2:  1,075 reassessments completed out of 1,928 ( 56 percent reassessed and 44
       percent remaining)
•      Group 3: 1,604  reassessments completed out  of 2,250 (71 percent  reassessed and 29
       percent remaining)

       Overall pesticide use appears to be declining as well, based on estimates derived from
sales figures, which show about a 15 percent decline between 1985 and 1999.  Insecticides as a
class tend to be  acutely toxic pesticides, and their use is also declining.  The  total for acre-
treatments using pesticides labeled "danger for humans" has gone down by 43 percent between
1997 and 2001."
18
       EPA has made great strides hi addressing FQPA requirements and incorporating them
into its core programs, including the reregistration of antimicrobials. The Agency has met much
shorter review periods for antimicrobials and virtually eliminated the backlog in this area.
Antimicrobials are different from other pesticides in that science issues, uses, constituencies and
stakeholders differ  from agricultural pesticides.   Use patterns such as wood preservatives and
antifouling paints have  raised public health and environmental concerns.   Also, for many
antimicrobial products, (e.g., hospital disinfectants, swimming pool disinfectants, medical waste
treatment products), product performance, i.e., efficacy, is an area where the Agency plays a
major regulatory role.  These differences mean it is difficult to leverage work on other pesticides
18 EPA Pesticides Industry Sales and Usage 1998 and 1999 Market Estimates, August 2002,
http://www.epa.gov/oppbeadl/pestsales
                                       IV-31

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to help make progress with antimicrobials. The new resources requested will help support the
antimicrobial tolerance  reassessments required to meet the  FQPA  deadline  for completing
tolerance  reassessments by  August  2006  and  for  maintaining the  established goal  for
reregistration.19

       The Agency will continue to address concerns regarding the  efficacy of public health
products used to kill microorganisms in hospitals, schools, restaurants, and homes.   Sterilizers
and disinfectants are increasingly vital to containing infections that are resistant to antibiotics in
clinical  settings.  EPA  has developed a comprehensive strategy to improve the regulation of
antimicrobial pesticides. Manufacturers are required to submit to EPA detailed and  specific
information concerning the  chemical  composition of their  product, effectiveness  data to
document their claims  against  specific microorganisms and to support the directions for use
provided in labeling; labeling that reflects the required elements for safe and effective use; and
toxicology data to document any hazards associated with use of the product.  EPA has committed
resources to ensure that efficacy tests  for antimicrobial products are  reliable and reproducible
and that internal controls are unproved to ensure the integrity of data submitted by registrants. In
keeping with a major component of the strategy, EPA has greatly improved communications
with  the  public, all  levels  of  government, academia, user communities,  industry, health
professionals, trade organizations, and independent testing groups. Additionally, the Agency has
enhanced and expanded its use of the Internet to educate the general public  about the status and
direction of the regulation for antimicrobial products.

       Another area of FQPA concern is the review of inert ingredients.  Of the original 870
tolerance  exemptions  for pesticide inert ingredients requiring reassessment, more than half still
need  to be reassessed as part of meeting the FQPA deadline. Review of inert ingredients is
crucial because these  ingredients could potentially be more toxic than  the active ingredients. A
portion  of the requested additional resources  will  be targeted to assist in  completing these
reviews.  There are approximately 50 inerts  hi a backlog that dates back as far as seven years.
The Agency has developed a streamlined methodology for evaluating inert ingredients and is
implementing the process, but  even with these process improvements, increased funding is
needed to ensure the Agency can meet the 2006 deadline.

       FQPA requires that EPA establish a process for periodic review of pesticide registrations
with a goal of completing this process every 15 years.  The registrations of pesticides will be
updated with respect to  current scientific data, risk assessment methodologies, program policies,
and effective risk reduction measures. In 2004, EPA will be addressing comments on a proposed
rule that outlines this  review program, developing final procedural regulations during 2005, and
continuing preparations to implement  the  new  program.   Implementation tasks  include
establishing and prioritizing registration review cases and  developing internal procedures and
information management processes. As the  reregistration program draws  to a close,  the new
registration review program will continue to protect human health and the environment using the
most current scientific standards.

       The Agency continues  to  ensure  that  sound  science is applied  consistently in our
pesticide reviews and also that this process includes stakeholder and scientific community input
to discuss the policies and their impacts. The Agency has worked extensively with stakeholders
19 FIFRA Sec 4 (i) (5)

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through the Pesticide Program Dialogue Committee (PPDC) and the Committee to Advise on
Reassessment and Transition (CARAT) to ensure transparency in decision-making and a fuller
understanding of the implications for growers, producers and the public. EPA will continue to
encourage  transition to safer pesticides, and to coordinate closely with USD A, industry and
commodity groups in finding alternative pest management practices and sharing information.

       The FY 2005 President's Budget Request reflects passage of the Pesticides Registration
Improvement Act, included in the FY 2004  Consolidated Appropriations Act. The Registration
Improvement Act includes an extension of the Maintenance Fees, originally authorized by the
1988 FIFRA  amendments, providing  funding  for  the  reregistration program,  tolerance
reassessments, expedited registration and inerts. The Act also authorizes a new voluntary service
fee for the expedited processing of pesticide registrations.

       Overall, the baseline funding for the Pesticides programs will remain stable, with the
exception  of two  requested increments:    $4.4  million  for the  completion of  tolerance
reassessments and reregistration programs, and $1 million to implement the new Endangered
Species  requirements.   However,  due to the  new  fee  structure, there  are  shifts  within
appropriated funding requests for specific program areas.

Pesticides: Field Programs

Categorical Grant: Pesticides Program Implementation

       In 2005, EPA will continue its
partnership with  States and Tribes in
educating   workers,    farmers   and
employers   on   the   safe  use  of
pesticides  and  worker safety. The
Certification and Training (C&T) and
the Worker Protection (WP) programs
protect agricultural workers, pesticide
applicators/ handlers, employers, and
the  public  from the  potential  risks
posed by pesticides.
I—Certification &
 Training of
       Applicators
                                                          Worker Protection Standard
      Pesticides S-
Mational Strategies far
 Health tare Providers
       The    Worker    Protection
regulations offer protection to over three and a half million people who work with or around
pesticides at more than 560,000 workplaces.20  The regulations include provisions for routine
safety training for all agricultural workers and pesticide handlers, and other provisions designed
to reduce or prevent pesticide exposure to pesticide workers.  The C&T program assures the
competence of private and commercial applicators in handling and applying pesticides through
certification and education/training programs. All applicators of restricted use pesticides must be
certified as competent and be recertified every three to five years through continuing education
or other means.21
20 40 CFR Part 170
21 FIFRA Sec 3(d), 11,22, 23
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       EPA will continue efforts to educate the public in the proper use of pesticides to prevent
household and other pesticide misuse.  EPA will focus its efforts in rural and urban areas with
poor communities where there are disproportionate public health risks to residents, especially
children.  EPA will employ product stewardship with manufacturers and distributors, and work
with  States   to   improve    their
certification and training programs.
EPA continues to improve consumer
product  labels, communicate  proper
                                            Promoting Use of Integrated Pest Management in Schools
                                                One of EPA's highest priorities is protecting children's
                                         health from unnecessary exposure to pesticides that are used in their
                                         schools to control pests. EPA is encouraging school officials to
                                         adopt  Integrated Pest  Management  (IPM)  practices to reduce
                                         children's exposure to pesticides while maintaining effective control
                                         of pests.

                                                A goal of the IPM in Schools Initiative is to efficiently
                                         integrate an  IPM program  with  the  school's existing pest
                                         management plan and other school management activities. School
                                         management activities such as preventive maintenance, janitorial
                                         practices, landscaping, occupant education, and staff training are all
                                         part of an IPM program.   The following steps are  required to
                                         develop an IPM decision network:

                                         •  Developing an  official  policy  statement  for  school pest
                                            management
                                         •  Designating pest management roles
                                         •  Setting pest management objective for sites
                                         •  Inspecting,  identifying and  monitoring  for incipient pest
                                            populations
                                         •  Setting action thresholds
                                         •  Applying IPM strategies
                                         •  Evaluating results and record keeping

                                                EPA  is helping schools understand and implement IPM
                                         through the distribution of printed publications, awarding grants to
                                         start IPM programs, offering workshops and courses and providing
                                         guidance and assistance through partnerships with universities and
                                         national associations.
handling  of pesticide  containers  and
their   distribution,    and    direct
enforcement   activities   to  prevent
improper sales and use of agricultural
pesticides.

       Regional offices will continue
to   support   the  development   and
implementation  of FQPA  transition
projects  with commodity groups  and
provide    strategic    and   technical
assistance    on    project    design,
implementation, and evaluation.  Due
to  variations in  crops,  pests  and
weather patterns in different locales, a
regional approach will be employed to
address local needs.   This approach
will  rely on  partnerships  between
EPA, state agencies (Departments of
Agriculture,     Departments      of
Environment   and   Land    Grant
Universities) and agricultural groups
(farm bureaus and  major commodity
groups).    The  first  stage  of  this
Strategic     Agricultural    Initiative
evaluates  current  farm  operations
including  pesticide   risk  reduction
technologies,     Integrated     Pest
Management (IPM)  techniques and Best  Management Practices (BMPs),  soil  and  water
conservation, handling and storage of hazardous materials, and solid waste management. Model
or demonstration sites are used for purposes of outreach, education and compliance assistance for
other agricultural operations throughout the State.

       In FY 2005, EPA, in cooperation with USD A, will continue to provide information about
pest control options, organize and deliver pest management educational programs for agricultural
producers, consumers, and  other  stakeholders  on reduced  risk pesticides and alternative pest
control methods. EPA will also continue to support the development and evaluation of new pest
management technologies through IPM  and  Pesticide  Environmental Stewardship Program
(PESP).
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       The PESP furthers risk reduction by promoting the use of safer alternatives to traditional
chemical methods of pest control. PESP, through voluntary partnerships with pesticide users,
also seeks to  reduce both  health  and  environmental  risks  while incorporating pollution
prevention strategies. Partners and supporters of PESP play vital roles in developing common
sense approaches  to pesticide risk reduction, including  use of IPM,  biological  and cultural
controls, and weather and pest data decision models.  PESP supporters have an interest in risk
reduction because they use agricultural products or represent groups affected by pesticides.

       Although this program began in 1994 prior to FQPA, its focus is consistent with the
statute's goals  and EPA's  strategic  plan  in reducing risk in agricultural and nonagricultural
settings.  PESP  grants  provide  assistance to partners,  and supporters, hi developing  and
implementing risk reduction strategies. EPA will continue to coordinate with USDA and other
Federal Agencies in encouraging and supporting IPM practices, fostering the managed use of an
array of biological, cultural, mechanical, and chemical pest control methods that achieve the best
results with the least adverse impact to the environment.

       The  Endangered  Species  Protection  Program (ESPP) is built on consultation  and
cooperation between the  United States  Fish and Wildlife Service (FWS), EPA Regions, States,
and pesticide users.  The  Endangered Species  Act  is  intended to protect and  promote the
recovery of animals and plants that are in danger of becoming extinct. Under the Act, EPA must
ensure that  use of pesticides will not result in  harm to species listed as endangered and
threatened, or harm habitat critical to  those species' survival. Additional resources are requested
to support efforts in FY 2005 to improve and formalize the consultation process and make the
program more efficient and effective. Some of this additional funding will be used by the states
for assisting in the implementation of these improvements.

       In order to protect listed species from harm resulting from pesticide use, the Agency will
continue to do the following:

•      Use sound science to assess the risk of pesticide exposure to listed species. In 2005, EPA
       will  continue to  work with industry to  improve  databases  of  endangered  species
       information.   The database  will help ensure consistent  consideration  of endangered
       species as pesticides are reviewed.
•      Implement use limitations through appropriate label statements; develop county bulletins
       containing maps of species' locations and pesticide use limitations; and provide a toll-
       free telephone number to  assist users hi determining whether they need a bulletin and
       where to obtain one.
•      Encourage individual  States and  Tribes  to  develop  then:  own  endangered  species
       protection plans where needed, to meet the program's goals.

       Reducing  the risks  of pesticide exposure is a particular challenge  hi Indian Country.
Native Americans may consume different foods than the average American, eating more or
different types of wild game and fish.  They may also engage in unique, culturally  linked
activities, live  in  different types of housing,  have different mobility patterns, and otherwise
encounter unusual chemical  exposure  opportunities.  Their patterns of exposure may not be
adequately represented hi the general public dietary or other exposure information gathered by
USDA, FDA or the registrant. In FY 2002, EPA launched a pilot project to modify Lifeline
software (a risk assessment tool) to enable it to capture these unique exposure risks for Tribes hi

                                         IV-35

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two biogeographical areas of the country.  The Agency is now beginning its evaluation of the
results of the pilot and determining whether work should proceed to expand the range of the
model. Additionally, the Agency will foster greater Tribal awareness of pesticide health hazards,
and provide training to Tribal members on managing pesticides and pesticide risks.  Outreach
and education tools must be matched to Tribal needs.

       EPA will continue to assist farmers in transitioning to reduced risk pesticides and pest
management practices as the Agency continues to comply with FQPA and restricts or removes
older,  riskier pesticides  from the market.   Agriculture's  effects  on  surface water  quality,
groundwater quality,  air quality, food quality,  habitat, and other  areas of concern can be
significant, thus a series of complex regulatory and non-regulatory control measures addressing
media-specific environmental issues is needed.  The Agency must   simultaneously consider
numerous risks associated with the agricultural use of pesticides, including pesticides application
spray drift, chemical runoff, pesticide disposal, groundwater protection, worker protection, and
pesticide application  techniques,  in order to promote  an  integrated  approach to pollution
prevention.

       EPA has  several  objectives and  programs to help protect  human health and the
environment. These efforts include:

•      Protection of agricultural workers;
•      Certification and training of pesticide applicators;
•      Protection of endangered species and non-target species such as benign insects, fish and
       wildlife, and ecosystems from the harmful effects of pesticides;
•      Development and implementation  of environmental stewardship and  integrated pest
       management pollution prevention strategies; and
•      Protection of our nation's groundwater from pesticide contamination.

       The Agency will establish a more consistent EPA presence as a partner with USDA and
other organizations  in addressing environmental issues associated with agriculture, and a more
consistent Agency voice hi the national dialogue on agriculture.

Toxic Substances: Chemical Risk Review and Reduction

       New Chemicals Program:  The Toxic  Substances Control Act (TSCA) of 197622 is the
Agency's basic chemical risk assessment  and risk  management statute,  covering production,
importation, processing, distribution, and use  of commercial/industrial chemicals in the United
States.  TSCA requires EPA to review a chemical or microorganism before it is manufactured
commercially or imported (i.e., a "new" chemical) to determine whether it can  be handled and
used safely. If the Agency determines that an unreasonable risk may be posed to people or the
environment, EPA can block the chemical's entry into commerce or  establish control measures
to ensure the chemical's safety in the marketplace.

       At the core of TSCA is the Premanufacture Notice (PMN) Review.   TSCA requires
companies planning to manufacture or import a new chemical substance into the U.S. to submit a
premanufacture notice to  EPA for review and action.   During PMN review, the Agency assesses
~ Toxic Substances Control Act, Public Law 94-469, October 11, 1976.

                                         IV-36

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within 90 days whether the new chemical poses unreasonable risk to workers and/or the general
population and whether action is needed to prevent or reduce that risk.  The PMN program is the
Agency's first and foremost line of defense against potential hazards from chemicals newly
introduced or imported.
                           Chemicals on TSCA inventory in 2003
                     New Chemicals
                     screened and
                        added to
                        Inventory
                          22.5%
                                                            Original TSCA
                                                             Inventory in
                                                                 1978
                                                                 77.5%
               Source: U.S. EPA, Office of Pollution Prevention and Toxics, Annual Performance Measures Tracking
       Since 1979, EPA has reviewed more than 40,000 PMNs, approved approximately 36,000,
and  taken actions to  control risks for an  estimated ten percent of  these  chemicals and
microorganisms.23   A majority of the chemicals currently in commerce, however, predate the
PMN review requirements,  a considerable number  of commercial chemicals entered  U.S.
commerce subsequent to the enactment of the PMN requirements,  and thus have undergone
PMN review. The PMN-reviewed chemicals are depicted as new chemicals added to the TSCA
inventory on the chart provided above.

       As the preceding  chart  suggests, there has  been substantial  progress  in  the  New
Chemicals Program  (NCP) since its inception in 1978.  In 2003, there were potentially 81,248
chemicals hi commerce; 18,248 of these chemicals, or 22.5 percent, had gone through the TSCA
Premanufacture Notice review process and entered into  commerce following submittal of a
Notice of Commencement of Manufacturing.24  These chemicals have been assessed for risks,
and controls are in place as necessary.
       As part of its continued interest in increasing efficiency through innovative processes and
voluntary partnerships, the Agency has launched "Sustainable Futures," a program designed to
help industry develop new chemical substances that are sustainable  both economically  and
environmentally.25  Regulatory relief is offered to participating companies submitting qualifying
new chemical  substances. Sustainable Futures advances pollution prevention by encouraging
risk screening of new chemicals at the earliest stages of R&D.   Sustainable Futures offers
23 U.S EPA, Office of Pollution Prevention and Toxics, TSCA New Chemicals Program Annual Report and the TSCA New
Chemicals Program Website http://www.epa.gov/opptintr/newchems/accomplishments.htm
24 U.S. EPA, Office of Pollution Prevention and Toxics, Annual Performance Measure Tracking Files
25 67 Federal Register 76282.  December 11,2002. "Sustainable Futures" U.S. Environmental Protection Agency, Office of
Pollution Prevention and Toxics. Pollution Prevention (P2) Framework Web Site, http://'www.epa.gQv/oppt/p2rfamework/.
Washington, DC. Accessed September 9, 2003.

                                          IV-37

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companies'  computerized chemical  risk screening tools  that  can be used to  identify and
commercialize environmentally preferable  new  chemicals.   A combination of training and
technical assistance in the use of EPA  risk screening tools and regulatory incentives (i.e.,
decreased time to market) will be used to promote the development of safer chemicals.  The
Sustainable Futures program makes use of the Persistent, Bioaccumulative, Toxic (PBT) Profiler,
which is a screening-level tool that estimates persistence, bioaccumulation, and chronic fish
toxicity.26 Highly praised by industry and environmentalists, over 24,000 chemical-specific PBT
analyses were performed between September 2002 and August 2003.  Use of the profiler informs
decision-making at early stages of new chemical development and promotes the selection and
application of safer chemicals and processes, thus reducing product development costs and
improving environmental performance.

       EPA has concluded a successful pilot project with the Kodak Corporation using methods
advanced through Sustainable Futures. Kodak's Final Project Agreement (FPA) report indicated
that "...Kodak has reviewed materials that were possible candidates for commercialization using
the P2 Framework.  Of the materials that could have been commercialized, 24 percent were
dropped early in the product development process. All PMNs submitted to EPA were cleared by
the Agency through their standard review process."  On  the heels of this success, a Federal
Register notice was issued in December 2002 to expand training  efforts to a nationwide pilot
program.27 Training has been initiated and informal discussions with trade associations  indicate
the potential to  leverage  external resources to increase the  pace of training potential PMN
submitters. Sustainable Futures PMNs are beginning to be submitted.

       Another effort to create efficiencies in the marketplace while maintaining environmental
protection involves our international partners, particularly  Europe  and Canada. EPA has been
engaged in discussions with industry representatives and our international governmental  partners
to institutionalize some  form of New Chemicals Review  "harmonization"  program that, if
successful, will allow for one government's new chemical hazard reviews to be routinely shared
and accepted by other governments.  If this program  is  successful, it will lead to seamless
information exchanges, and accelerate innovation by allowing faster introduction of newer, safer
chemicals into international commerce. To this end, in a cooperative program with industry, EPA
has been  sharing selected new chemical reviews  of substances with Canada as well as the
Organization for Economic Co-operation and Development (OECD) for several years now. The
Agency has also been providing information on our review process for new chemicals to the
European Community as they consider proposed new legislation on new and existing chemicals,
known as Registration Evaluation and Authorization of Chemicals (REACH).

       The Agency will prepare a plan for the development of annual  performance goals  and
measures for the New Chemicals Program (NCP) so that progress towards the relevant strategic
targets can be measured and monitored.  Historically, the NCP has relied primarily on output-
based measures to monitor and assess results obtained through the NCP (for example,  tracking
the number of chemicals that go through the NCP process). In 2005, we will apply  new annual
goals   and   measures   (currently   under  development)  that   will  be  based   on  the
prevention/avoidance of unreasonable risk  so as to allow better  evaluation of the program's
effectiveness hi meeting its strategic targets. In addition, we will apply one or more efficiency
26 U.S. Environmental Protection Agency, Office of Pollution Prevention and Toxics. PBT Profiler Web Site,
http://www.PBTProfiler.net. Washington, DC. Accessed September 3,2003.
27 67 FR 76282, December 11, 2002

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measures for determining whether the desired NCP results are being achieved at reduced cost
relative to the benefits of protecting the American people from risk to human health and the
environment.

       For the first time as part of the FY 2004 budget process, the New Chemicals Program
(together with the Green Chemistry Program) was evaluated under the  Program Assessment
Rating Tool (PART)  budget process.   The program  demonstrated  results,  receiving  an
"adequate" rating.  During the FY 2005 re-evaluation,  the  New Chemicals Program scored
higher in the Program Planning and Results/Accountability sections of the PART, resulting in a
"moderately effective" rating because of increased results demonstrated.

       These advancements were  achieved through work initiated by  the New Chemicals
program  to  develop a long-term outcome  measure  on risks to the public avoided and  an
efficiency measure to track costs per new chemical review. This was done in response to the FY
2004 PART experience but also in conjunction with the EPA Strategic Plan revision effort. The
New Chemicals program is continuing  its efforts to improve  performance measurement in
response  to FY 2005 PART findings by developing long-term and associated annual efficiency
measures. The program is also establishing targets and timeframes for measures, considering an
independent evaluation of the program, and proposing appropriations language to remove the cap
on fees in TSCA for PMN reviews.

       Existing  Chemicals Program:  Before  enactment of TSCA in  1976,  there  was  no
comprehensive Federal statute requiring the review of new chemicals but there were already a
large number of chemicals in use.  Therefore, relatively little information exists on the potential
hazards of many chemicals that are hi commerce and found hi everyday household products and
industrial processes.  A major priority for the Agency is improving the amount of human health
and  environmental effects data on industrial  chemicals  in commerce that were not screened
under the PMN program and ensuring public access to the information.  Fostering the public
availability of risk screening information will allow States, communities, industry, and the public
to act on  then- own and in concert with EPA to reduce potential risks posed by these chemicals.

       To help  carry out this strategy, EPA developed the Risk  Screening  Environmental
Indicators model (RSEI), which is used to assess the  relative impacts of releases  of toxic
chemicals by combining estimates of toxicity, exposure level, and the exposed population to
provide  risk-related comparisons  (i.e.,  indexes  of relative risk).28   RSEI performs  such
calculations in a matter of minutes or hours, including various screening-level analyses, saving
stakeholders tune and resources. Nonetheless, identifying and prioritizing risks is an ongoing
challenge. The High Production Volume Chemical program,  described in more detail below, is
one  effective way to review a greater number of chemicals  than ever before, but many other
chemicals will remain unexamined.

       To assist hi finding feasible strategic  approaches to  this issue, the National  Pollution
Prevention and Toxics Advisory Committee (NPPTAC) was established in September 2002 hi
accordance  with the  provisions of the Federal Advisory Committee Act (FACA29).   The
NPPTAC will  support EPA in performing  its  duties  and responsibilities under the  Toxic
28 U.S. EPA, RSEI website location, http://www.epa.gov/oppt/rsei/whats_rsei.html
29 5 U.S.C. App.2 § 9 (c)

                                        IV-39

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Substances Control Act, the Pollution  Prevention Act, and other  applicable statutes.   The
objectives of the NPPTAC are to provide advice and recommendations in areas such as:

•      Risk assessment/management;
•      Risk communication;
•      Pollution prevention in chemical management and prevention programs; and
•      Coordination with other Federal,  State and Tribal government agencies, as well as non-
       governmental organizations.

       In this increasingly global economy, chemical risk identification and risk management is
a responsibility of all. EPA has been deeply involved hi international efforts to manage Persistent
Organic Pollutants (POPs) and select heavy metals (e.g., mercury).30  The POPs protocol in turn
helped to establish the foundation for the negotiation (under the auspices of the United Nations
Environment Program, or UNEP) of a legally binding global convention on POPs.  Another
important international agreement, the Rotterdam Convention on  the Prior Informed Consent
(PIC) Procedure for Certain Hazardous Chemicals and Pesticides hi International  Trade was
signed hi 1998. Now that 50 countries have ratified it, the PIC Convention will come into force
on February 24, 2004. The  PIC Convention establishes a network for information exchange and
provides opportunities  for  importing countries to make informed decisions when importing
certain chemicals that have been subject to control actions hi other parts of the world.

       Establishing compatible information collections, databases and dissemination vehicles
are indispensable to effective international chemical management, and can provide a streamlined
cost-savings for industry, reducing barriers to trade. Through HPV data collection efforts, the
EPA has made hazard data available via both domestic and international program efforts, namely
the U.S. Chemical Right-to-know (ChemRTK) and OECD Screening Information Data  Sets
(SIDS), respectively.

       It is also under  the OECD SIDS Program in which the  EPA  is able to review and
comment on EU risk assessments prior to publication. In order to promote data collection, data
sharing and standardization, EPA is endeavoring to ensure that the results of these efforts and
their associated products (dossiers, robust study summaries, screening level assessments and
hazard profiles) are compatible with the remaining OECD member countries' equivalents to
include Europe hi these and similar programs.  Testing protocols for chemicals are another
opportunity for enhancing trade while ensuring environmental protection. To this end,  EPA has
published about 100 test guidelines,  a third  of which have been harmonized with OECD
requirements.31  The U.S.  is one of the 30 OECD member countries that participate  hi the
development of OECD Test Guidelines.  On average (over the last decade or so), approximately
five new and/or revised OECD test methods may be finalized and released hi any given year.

       For the first tune as part of the FY 2004 budget process, the Existing Chemicals Program
was evaluated under OMB's  Program Assessment Rating  Tool  process.  In the  FY  2005 re-
evaluation, the program increased its score by over 50 percent and advanced to a rating of results
30 Under the United Nations Economic Commission for Europe's Convention on Long-Range Transboundary Air Pollution
(LRTAP).
31http://www.oecd.org/document/22/0,2340,en_2649_34377_1916054_l_l_l_l,OO.html

                                        rv-40

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demonstrated of "adequate." The program's scores increased dramatically in the Purpose and
Design, Strategic Planning, and Results sections of the tool.

       In response to the FY 2004 PART experience as well as the Agency's Strategic Plan
revision efforts during FY 2003, the program worked to establish better long-term and annual
performance measures. The success of these preliminary efforts in setting ambitious targets and
demonstrating results has been illustrated in the increased PART  score for FY 2005.  Most
notable was  the  creation of a  long-term outcome-focused  measure examining the percent
reduction of chronic human health risk from environmental releases of industrial chemicals in
commerce. The Existing Chemicals program is continuing its efforts to improve performance
measurement in response to FY  2005 PART findings by developing long-term and associated
annual efficiency measures.

       High Production Volume (HPV) Challenge Program Ensuring Public Access to Chemical
Hazard Information;  Of the 80,000 chemicals on the TSCA inventory, only 22 percent went
through Pre-Manufacturing screening.  As discussed, little is known of the vast majority of
chemicals present in our daily lives.  The HPV  Challenge Program focuses on the  chemicals
produced in high volumes.32  Established in cooperation with industry, environmental groups,
and other interested parties, the HPV Program is working to ensure that critical human health and
environmental effects data on approximately 2,800 HPV chemicals are made publicly available.
HPV chemicals are defined as industrial  chemicals that are manufactured or imported into the
United States in volumes of one million pounds or  more each year.   Through this  program,
companies and consortia voluntarily sponsor HPV chemicals for screening-level  testing. Hazard
test information on large volume  chemicals is posted on the HPV website, giving States, regions,
and Tribes accessibility and the ability to share critical data and information.

       EPA recognizes the importance of investigating HPV chemicals on a worldwide basis by
working closely with the Organization for Economic Cooperation and  Development  (OECD).
The Agency continues to develop risk analysis tools that improve information sharing and data
collection regarding high production volume chemicals. The Screening Information Data Sets
(SIDS) contains information on physical characteristics, and environmental fate and pathways, as
well as ecotoxicological and toxicological data.

       EPA continues to undertake activities targeted at receiving and reviewing the quality of
HPV chemical hazard data, and  reviewing the plans of sponsor companies for  developing new
test data.  As of December 12, 2003, a total of 2,231 HPV chemicals had been sponsored under
the program, and 331 companies and 97 consortia were  sponsoring chemicals. Two hundred
sixty-seven test plans covering 1,064 chemicals have  been received.33 The Agency has worked
with industry and environmental groups  to minimize the need for animal  testing. During FY
2004, EPA plans to examine the status of "orphan" chemicals (those not voluntarily  sponsored
by industry) in the HPV program and will  develop actions to secure needed data.
32 U.S. Environmental Protection Agency, Office of Pollution Prevention and Toxics. "High Production Volume (HPV)
Challenge Program." Available online at: http://www.epa.gov/chemrtk/voichall.htm. Washington, DC. Accessed September 9,
2003.
33 U.S. EPA, Office of Pollution Prevention and Toxics, High Production Volume Challenge Program, HPV Commitment
Tracking System. Available at http'.//w\vw.epa.gov/chemrtk;'vievvsrch.htm.

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       EPA is committed to making information obtained through the HPV program broadly
accessible to the public, both domestically and internationally.  As one step in meeting that
commitment, the Agency has posted HPV data on the EPA website.34  In FY 2002, the HPV
program made screening level health and environmental effects data on 843 chemicals available
to the public and for FY 2003 the total was 1,080.35 EPA expects that test plans for 1,129
chemicals will be received and reviewed by EPA by year-end 2004.

       In 2004 and 2005, EPA efforts will focus on making the HPV data more accessible to the
public  through  more  efficient  data systems that  meet  stakeholder  needs  for analysis  or
compilation.  Extensive website enhancements will allow users to search for comprehensive data
related to sponsored chemicals.  Technical  guidance will enhance data use by States, local
governments, the chemical industry and others.  EPA will also begin to screen submitted data
and  identify chemicals  of potential  concern that may  require  additional  work,  currently
anticipated to involve five to ten percent of screened chemicals.

       Voluntary Children's Chemical Evaluation Program (VCCEP) Ensuring Public Access to
Chemical Risk Information;  Children, with then" developing brains and bodies, can be more
vulnerable to  potential adverse  effects of chemical  exposures.  EPA's Voluntary  Children's
Chemical Evaluation  Program  (VCCEP) focuses  on  assessing  the  potential health risks
associated with chemicals to which children are exposed.36 Through VCCEP, companies that
manufacture and/or import  chemicals to  which children have a high  likelihood of exposure
voluntarily sponsor data on the chemicals.  Initially, thirty-five companies and ten consortia
volunteered  to sponsor 20 chemicals.  As part of their sponsorship, companies collect and/or
develop  health  effects  and exposure  information  on  their chemical(s) and  integrate that
information into a risk  assessment. A "Data Needs Assessment" is conducted, which determines
whether it is necessary to expand the information we have on the risks these chemicals may pose
to children.

       Assessments  addressing  the risks to children  of four  separate chemicals  (acetone,
decabromodiphenyl ether, vinylidene chloride, pentabromodiphenyl ether) were developed in FY
2003.  An independent outside party held peer consultation meetings for all four assessments.
The  independent outside party will post the final summary of the peer consultation meetings on
its website so they will be available to the public.  In 2005, follow-up actions for the chemicals
assessed in 2003 will be undertaken if warranted.

       Assessments  addressing  the risks to children  of five additional chemicals will  be
reviewed by peer consultations hi FY 2005.  EPA has developed a process for providing the
Agency's response to  the data needs section of the sponsor's assessments.  This includes an
Agency review by other interested program and regional offices.

       TSCA Inventory  Update Rule Amendment (IUTLA): The TSCA Inventory Update rule
requires  the submission of basic. data  - companies,  production sites  and volumes -  on
approximately 9,000 organic substances every four years, taken from a list of more than 76,000
34 U.S. Environmental Protection Agency, Office of Pollution Prevention and Toxics. "High Production Volume (HPV)
Challenge Program." Available online at: http://www.epa.gov/chemrtk/vo1chaU.htm. Washington, DC. Accessed September 9,
2003.
35 U.S. EPA, Office of Pollution Prevention and Toxics, High Production Volume Challenge Program, HPV Commitment
Tracking System. Available at htip://www.epa.gov/chemrtk/yiewsrch.htin.
36 U.S. EPA website, http://www.epa.gov/chemrtk/vccep/index.htm

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chemicals on the TSCA Inventory of Chemical  Substances.37  A recent amendment will also
facilitate the collection of data on inorganic chemicals, beginning in 2006.38 There have been
five IUR collections of basic chemical manufacturing information since its beginning in 1986.
This information has proved invaluable to EPA programs, and the IUR databases are often the
first  data  sources searched when investigating a chemical.   Recent amendments expand the
information collected to include manufacturing  exposure-related information on about 9,000
organic and inorganic chemicals and processing and use information on about 3,000 organic
chemicals.39

       The TSCA Inventory Update  Rule Amendments (IURA) address deficiencies in the
availability of exposure-related information on a set of relatively higher production volume
chemicals from among the chemicals listed on the TSCA Inventory.  Basic exposure information
is critical if the Agency is to identify potential risk reduction opportunities and target resources
more efficiently.   The amended rale provides the EPA with  a vehicle  to  obtain  updated
information related to the potential human and environmental exposures of chemical substances
listed on the TSCA inventory.

       A  series  of stakeholder training  sessions will be conducted in  2004 and 2005  to
familiarize the regulated community with the amended rule and to instruct persons reporting
information to the Agency on the requirements and interpretation of the new rule. In addition to
an instruction manual, a question and answer document and an interactive online instruction
manual will be developed to assist persons who will report information under the rule. By 2005,
additional amendments to the  Inventory Update Rule will clarify the rule and respond to
commitments included in the 2003 amendment.  EPA will complete a petition review pilot
project and will begin to review petitions for inclusion hi the IUR partial exemption.

       By requiring persons reporting under the rule to collect and report information on the use
of chemical products they manufacture and import, the rule will alert the regulated community to
possibilities to reduce exposure to chemical substances. Additional information collected by the
Agency will facilitate selection of chemical substances for more in-depth evaluation and efforts
to regulate chemicals of concern, reduce the consumption of chemical substances, and encourage
the use of safer chemical substitutes.  EPA will also continue its effort hi the IURA data base
development and plans to complete the design in FY 2005.

       Moreover, EPA plans separate actions dealing with brominated flame retardants  (BFRs)
and perfluorooctanoic acid and its salts (PFOA),  respectively. These chemicals are singled out
for separate discussion below because they have recently been identified as requiring priority
attention within the larger universe of existing chemicals.

       Brominated  Flame Retardants  (BFRs -  PBDEs);   The potential  risks  to children
associated  with  exposures to three brominated flame retardants — penta-, octa-, and deca-
bromodiphenylether  (PBDEs) —  were assessed under  the  Voluntary  Children's  Chemical
Evaluation Program (VCCEP).   Recent  studies have shown widespread presence of these
chemicals, particularly lower brominated (terra to hexa) congeners, hi the environment and hi
37 U.S. EPA website, www.epa.gov/opptintr/iur; Title 40 CFR Part 710, Subpart A
38 U.S. EPA website, www.epa.gov/opptintr/iur/amendment.htm; Title 40 CFR Part 710, Subpart C
39 U.S. EPA website, www.epa.gov/opptintr/iur/amendment.htm; Title 40 CFR Part 710, Subpart C
                                         IV-43

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humans - including in human breast milk and serum.40 Health concerns associated with human
exposure  to  these  chemicals  include developmental neurotoxicity and thyroid effects.
Biomonitoring data indicated that this chemical exists in food, drinking water and indoor air.41 It
is also widely distributed in aquatic and terrestrial fauna including species used by humans as
food.  PBDEs are typically used in such products as polyurethane foams, television and radio
cabinets,  printed  circuit  boards,  and  textiles  including  fabrics  for upholstered furniture,
automotive and airline seating, draperies, and carpets.

It is evident that there may be  widespread exposure to PBDEs. What is not known are the
potential risks of exposure to  these chemicals.  By 2005, the Agency will have a better
understanding of the following:

•      the chemicals' environmental properties, environmental fate, and exposure pathways,
•      health and environmental effects, and
•      potential substitutes.

       EPA is working to determine whether the potential risks of PDBEs to children have been
adequately characterized, and if not, to identify the data needs remaining.  EPA is continuing to
evaluate potentially safer substitutes for these chemicals  in the TSCA New Chemicals Program.
In addition, EPA continues to  develop a significant new use rule (SNUR) which would require
manufacturers and processors to notify the Agency before they produce  certain chemicals as
flame retardants for residential upholstered furniture.  EPA will work with the Consumer Product
Safety Commission (CPSC), which is in the process of developing a residential upholstered
furniture flammability unit. Product stewardship and other voluntary efforts are other avenues to
address this issue.

       In 2005, EPA will continue its VCCEP efforts to assess and, if indicated, manage risks
associated with brominated flame retardants. EPA will also continue its ongoing efforts to assess
the potential risks of commercially developing BFR substitute  chemicals in its New Chemicals
program.  EPA will track the adoption of State and Federal laws and regulations and consumer
preferences that influence the  use  of brominated flame retardants hi commercial and consumer
products.  EPA will monitor and encourage the adoption of chemical substitutes for  brominated
flame retardants hi commercial and consumer products as appropriate.

       PFOA (Perfluorooctanoic  acid and  its salts) and Fluorinated  Telomers:   In the  late
1990's, EPA received information that PFOA and related chemicals were present hi low amounts
hi the blood of the general population.  Since then, EPA has examined this family of chemicals
and worked with industry to collect more data under the Existing Chemicals program.

       PFOA is a synthetic  chemical  used as an essential processing aid in the manufacture of
fiuoropolymers.  Currently, fluoropolymers are employed in  hundreds of industry segments,
including aerospace,  automotive,  building/construction, and  electrical.  PFOA may also be
produced by the degradation of other synthetic chemicals, called fluorinated telomers. Telomers
are used as protective surface treatments on many industrial and consumer products, including
40 "Environmental Health Perspectives," Volume 112(1), January 2004, "Brominated Flame Retardants: Cause for Concern?,"
review by Linda S. Birnbaum and Danielle S. Staskale; http://ehpnetl.niehs.nih.gov/members/2003/6559/6559.html
41 Ibid.


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carpet, paper, leather, and textiles, and as surfactants in cleaning products.  Toxicity studies in
laboratory  animals   reveal  that  PFOA   causes   developmental  and   systemic  toxicity,
immunotoxicity,  and  carcinogenicity.42   PFOA  is  also persistent  hi the  environment.
Furthermore,  EPA's preliminary  assessment indicates  potential exposure  of the U.S. general
population to PFOA at very low levels. However, we don't know the potential risks of PFOA at
current levels or the sources of the chemical found in people and the environment.

       In 2005, EPA will pursue  PFOA risk management actions  as indicated by the results of
ongoing  risk  assessment and testing actions.  EPA has developed a draft risk assessment for
PFOA and plans to seek peer review of the assessment by EPA's Science Advisory Board in
spring 2004.  Manufacturers have voluntarily committed to developing hazard and exposure-
related data that will be of assistance in the assessment of PFOA risks.  Manufacturers, Federal
and State agencies, and other interested parties are also participating in  the development of
enforceable consent agreements (EGAs) under Section 4 of TSCA that will direct the generation
of additional information necessary to understand the sources of PFOA in the environment and
the pathways leading to human and environmental exposures. EPA is also drafting a proposed
rale that  would amend the TSCA Polymer Exemption Rule43 to exclude from eligibility certain
perfluorinated polymers.

       Acute Exposure Guideline Levels (AEGLs):  Through the AEGL Program, EPA provides
scientific and technical support in  the development of emergency exposure limits and works with
over nine Federal agencies, numerous State agencies, private industry, academia, emergency
medical  associations, unions, and other organizations in  the private sector.44  Recently, the
program  was extended to the international community,  with the endorsement of the OECD and
active participation by The Netherlands and Germany. In addition, the U.S. State Department is
expected to provide a grant to Russia to support the AEGL Program. EPA has attended meetings
hi Russia to  discuss that country's interaction with the AEGL program.  The objective is to
develop one standardized set of scientifically sound short-term exposure values that will be used
worldwide for all chemical emergencies.

       The AEGL program has been a key contributor to EPA's Homeland Security efforts for
the nation. Acute inhalation values  for chemicals of concern to homeland security have been
developed with support from EPA's Office of Research  and Development as well as direct
support from Congress.

       Through FY 2003, the AEGL Program has developed proposed values for 100 chemicals,
of which 18 have  been published as final by the National Academy of Science (NAS).45 This
includes  13 chemicals hi FY 2003. The final AEGL values include nerve agents and mustard
gas.  These values are being used for emergency planning by the military and State agencies as
the military begins to destroy stockpiled chemical warfare agents.
42 U.S. EPA, "Revised Draft Hazard Assessment of Perfluorooctanoic Acid and its Salts," USEPA 11/4/2002, OPPT-2003-0012-
0011
43 40 CFR Part 723.250
44 National Research Council. 2001. Standing Operation Procedures for Developing Acute Exposure Guideline Levels for
Hazardous Chemicals. Washington, DC: National Academy Press.
45 National Research Council 2000. Acute Exposure Guidelines Levels for Selected Airborne Chemicals, Volume 1.201pp,
Volume 2.276pp, Volume 3.497pp

                                         IV-45

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       In FY 2004, the President provided additional funding for AEGL development as a result
of PART findings.   In FY 2005, the President's Budget maintains this  increase.   EPA has
initiated a broad based, collaborative effort to develop necessary AEGLs.  To date, during the
start-up phase, the program has developed approximately 1,500 AEGLs for approximately 100
chemicals with proposed, interim, or final status.

       Toxic Substances: Chemical Risk Management:  Most chemicals currently in commerce
were introduced into the marketplace and the environment before their risks were known, and a
number of these  chemicals have turned out to  be both prevalent and high-risk.   EPA has
established national  programs which manage reductions in use,  safe removal, disposal and
containment  of these chemicals, as appropriate.   For example,  significant risks  are well
established for polychlorinated biphenyls (PCBs), asbestos, mercury and dioxin. Reductions in
uses and releases as well as  dissemination  of risk awareness and prevention information are
important to reducing exposure of the general population and sensitive sub-populations to these
chemicals. Many of these chemicals have impacts on all work that is ongoing in air, water, and
waste, and the Agency coordinates approaches to maximize effectiveness, notably through the
persistent bioaccumulative, and toxic (PBT) program.

       Persistent, Bioaccumulative. Toxics (PBTsV.  EPA remains concerned about  persistent
bioaccumulative, and toxic (PBT) substances, a category of chemicals that includes mercury,
dioxins/furans, and PCBs, because these pollutants persist in the environment and can build up to
high concentrations  in human and animal tissue.4  Some PBTs can cause developmental and
neurological  defects in fetuses and  young  children and some are also  suspected endocrine
disrupters.

       EPA is pursuing the development of National Action Plans for certain PBTs.  Since FY
1999, the Agency has completed a  National Action Plan  for Alkyl-lead47 and is tracking its
implementation.  The Agency  has  also fostered the  development of effective cross-agency
communication and collaboration through a  cross-agency PBT Monitoring Strategy.  Finally,
EPA has focused on the development of National Action Plans for Mercury, Dioxins/Furans and
PCBs.
       New activities for FY 2004 and 2005 will include:

•      Continuing efforts for dioxins and furans, Mercury and PCBs;
•      Implementing a cross-agency routine PBT monitoring strategy;
•      Seeking continued improvement in PBT risk communication through Agency- wide PBT-
       specific  webpages (created in 2003) plus  development of a  cross-cutting  PBT  risk
       communication and outreach strategy; and
•      Reviewing the results from major measurement, monitoring and data collection efforts.
                                                              r<  ^
       Hospitals  for a Healthy  Environment:   Though  it     !^«*!«'>-_£*l \ <• *
renders uniquely valuable services, the healthcare  sector uses a      '  ^   '1 * i"\ t'l n -»
variety of toxic products and generates large volumes of waste.      /I \ \ t k o N M i N T*
In an effort to expand voluntary pollution prevention strategies
46 U.S. EPA website, www.epa.gov/pbt
47 Federal Register, July 23, 2002, Vol. 67, Number 141, Page 48177-48178 - Final National Action Plan for Alkyl-lead; Notice
of Availability. EPA web site: http://www.epa.gov.pbt/alkyl.htrn

                                        FV-46

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to the healthcare sector, the Agency has collaborated with the American Hospital Association,
Health Care Without Harm, and the American Nurses  Association to create the voluntary
program called Hospitals for a Healthy Environment (H2E) (discussed in greater detail under
PBT section above).  H2E works with hospitals and health care facilities to eliminate non-
essential mercury use, reduce hospital wastes, and identify and eliminate the use of non-essential
persistent, bio-accumulative, and toxic chemicals (PBTs).

       As H2E participants, hospitals and health care facilities pledge to eliminate mercury by
2005 and reduce overall hospital waste by 50 percent by 2010.  EPA is maintaining its support
for the Hospitals for a Healthy Environment program, which continues to recruit new partners
and make progress towards its mercury and waste reduction goals. For mercury use reduction,
EPA plans to create additional partnerships with industry to reduce existing mercury uses.  To
improve the  quality of data used for assessing trends, the Agency will develop a database on
national industry use of mercury.

       The  H2E program continues to actively recruit hospital and health care facilities.
Currently, over 2,100 facilities are participating in the program and it is expected that as many as
one-third of the  nation's 6,000  hospitals will pledge to the program.48 Recently, the Veterans
Health  Administration, Kaiser  Permanente,  and  Catholic  Health  Association all pledged
commitment to the program.

       Currently, the United States  is experiencing a significant demographic transformation,
with the number of persons of age 65 and older expected to double by the year 2030.49  As a
result, EPA has announced a comprehensive and coordinated new aging initiative to  address the
environmental health needs of older populations. As part of the new Aging Initiative, H2E has
signed on 84 nursing homes as H2E partners50 and will continue to bring more nursing homes
into the program and extend its outreach to assisted living and long-term healthcare facilities.

       FY 2005 Activities will include the following:

•      Developing a "green  chemical  inventory" program  to help  facilities  identify and
       eliminate use of harmful chemicals on-site;
•      Promoting the use of greener cleaning chemicals;
•      Training in integrated pest management and safer pesticide use;
•      Providing building specifications for green construction of assisted living and long-term
       care facilities;
•      Providing purchasing specifications for environmentally preferable products; and
•      Providing  older  persons and  their  caregivers  with  a  "Guide  to  Choosing  an
       Environmentally Friendly Care Facility"

       Polychlorinated Biphenyls (PCBs):  Polychlorinated biphenyls (PCBs) have been shown
to cause a wide variety of health effects, often at very low levels. The average American carries
enough PCB in  his or her body  to meet or exceed the minimum threshold for beginning health
problems due to PCBs. Because of their insulating and nonflammable properties, PCBs had been
48 www.h2e-online.org
49 U.S. Census Bureau, "The 65 Years and Over Population: 2000," October 2001
50 www.h2e-ordine.org

                                         FV-47

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widely used as coolants and lubricants in transformers, capacitors, and other electrical equipment
before manufacture was stopped in 1977.51  This equipment is now reaching the end of its useful
life.. Reducing exposure through safely disposing of existing equipment or materials containing
PCBs is the main focus of EPA's program.  PCBs are an issue with implications for domestic
industry, international commerce and defense.

       In  FY 2005,  EPA will continue to encourage the voluntary phase-out  of PCB Large
Capacitors and PCB Transformers. Activities to facilitate this  voluntary phase-out include
discussions with  major Federal and private owners and operators of electrical  equipment;
identification of opportunities for replacement of older, less efficient equipment with new more
efficient equipment;  and  the accelerated phase-out of PCB containing electrical equipment as
supplemental environmental projects. These activities are reflected in our annual performance
goals, which measure the number of PCB Large Capacitors and PCB Transformers disposed of
since 1991 as reported by the disposal facilities.  In addition,  assuming ratification of the
Stockholm Agreement (POPs), EPA will be actively involved in implementing  the Agreement
including the development of a PCB implementation plan and strategy.

       EPA will  continue  to work  toward achieving the U.S. commitments to  the North
American Regional Action  Plan (NARAP) for PCBs.  The U.S. obligation hi the NARAP for
PCBs establishes a  goal for the virtual  elimination of PCBs in items such  as PCB Large
Capacitors and PCB  Transformers by 2008.  In the most recent data, between 1999 and 2001,
PCB waste management companies reported  the disposal of 36,258 PCB Large  Capacitors and
24,792 PCB Transformers.52

       EPA will  continue to work with the Maritime  Administration (MARAD)  in order to
dispose of its fleet  of obsolete ships which contain  equipment using PCBs, in FY 2005.
MARAD has a fleet  of approximately 130 obsolete ships that are ready for disposal.  Proposed
methods of disposal include domestic and foreign scrapping.  Pursuant to legislation enacted in
FY 200353, EPA  and MARAD  were  directed to  implement one or more pilot programs for
foreign scrapping  by  September 30, 2003; each pilot is limited to no more than four ships.  EPA
granted MARAD  enforcement discretion to export 13 ships for scrapping to the United Kingdom
(UK).  MARAD  has exported four ships. MARAD and EPA are considering rulemaking to
allow the export of the remainder of the ships. MARAD is also considering scrapping proposals
from shipyards in  China and the Northern Marianas. The deadline for disposing of the remaining
ships is 2006.

       Two Department of Defense incinerators have begun trial burns of PCB-containing nerve
agent rockets in FY 2004, which are expected to lead to final disposal approvals. Two existing
DoD incinerators  will continue PCB disposal  activities and their PCB disposal approvals will be
modified  as needed.    By 2005, EPA  expects  to  issue final  approvals  needed to ensure
environmentally safe disposal of nerve agent rockets with PCB contamination.

       Dioxin:  "Dioxins" refers to a group of chemical compounds that share certain chemical
structures and biological  characteristics.  Studies have shown that exposure to dioxins at high
51 National Safety Council webpage; Polychlorinated Biphenyls (PCB) Chemical Backgrounder at
www.Esc.org/library/checmial/polychlo
5240CFR761.180(b)
53 Title XXXV, Maritime Administration Sec. 3504 (Bob Stump National Defense Authorization Act for Fiscal Year 2003)

                                        IV-48

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enough doses may cause a number of adverse health effects.54 Federal, State and private sector
efforts to reduce releases of dioxins and dioxin-like compounds have had significant results. As
the regulations now in place are fully implemented  over the next few years, dioxin emissions
from  well  characterized sources will be reduced by more than 90 percent, using 1987 as a
baseline. Human exposure to dioxin-like compounds has also declined.  Current tissue levels in
humans are about half of those  estimated for the early 1980s.  Further reductions in exposure
become increasingly difficult because of dioxin's environmental persistence.

       EPA will continue to be part of an interagency effort to assess potential dioxin risks to the
public, focusing on identifying and better quantifying the  link between sources of dioxin-like
compounds and potential  human exposures.  Results from the Agency's Dioxin Exposure
Initiative (DEI) have already resulted in  the  identification of additional sources, and the
establishment of baseline measurements of dioxins in food and air.

       Studies on dioxin sources included testing of certain coal-fired utilities, uncontrolled
combustion of household waste, and releases from utility poles treated with pentachlorophenol.
EPA  also conducted sediment analysis  of selected lakes across the U.S. to  establish long-term
historic trends  in  dioxin environmental  levels.   EPA  helped organize  and has  actively
participated in the Interagency Dioxin Research Coordination workgroup  with FDA, CDC,
USD A, and others.

       In addition, the Agency designed and  deployed the National Dioxin  Air  Monitoring
Network (NDAMN) and modified EPA's air transport model55 so that it could predict long-range
transport of dioxin.  NDAMN data will help the Agency track the effectiveness of EPA's recent
combustion regulations in achieving the anticipated reductions in dioxin levels in ambient air.

       On  the international level,  EPA has  provided the lead  for  U.S. participation and
development of a draft Phase I North American Regional Action Plan for Dioxins  and Furans,
and Hexachlorobenzene56.  After this  draft Action  Plan  undergoes public review, it will be
finalized and  submitted for approval to the environmental ministers of the U.S., Canada and
Mexico.  In addition, assuming ratification of the Stockholm Agreement (POP's), EPA will be
actively  involved hi implementing the Agreement including the development of a  Dioxin
implementation plan and strategy that reaches beyond North America.

       Mercury:  Mercury can be a potent neurotoxin and is known to bioaccumulate, notably in
fish.  Approximately 8 percent of women of childbearing age, representative of the United States
population, had blood mercury  concentrations  higher than the U.S. Environmental Protection
Agency's recommended reference dose, according to 1999/2000 data from the National Health
and Nutrition Examination Survey published in April 2003 hi  the Journal of the American
Medical Association57. EPA has taken numerous actions to reduce sources of mercury pollution
to air, water and waste through regulatory and permit  programs. EPA is developing a new draft
54 Dioxin Qs & As, www.epa.gov/ncea/dioxinqa
55 Regional Lagrangian Model of Air Pollution (RELMAP).
56 www.ceo.org/pubs_docs/documents/index.cfin?varlan=english&ID= 1220
57 Schober SE, Sinks TH, Jones RL, Bolger PM, McDowell M, Osterloh J, Garrett ES, Canady RA, Dillon CF, Sun Y, Joseph
CB, and Mahaffey KR. Blood mercury levels in US children and women of childbearing age, 1999-2000. JAMA 289:1667-
1674,2003

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of the Agency's Mercury Action Plan (MAP), which will outline EPA's multimedia, multi-
office goals and priority actions for addressing mercury pollution and exposure over the coming
years.

      To meet the Agency's objectives of reducing chemical risks to humans, communities, and
ecosystems, EPA has provided support to a number of regional and State programs designed to
reduce mercury use and releases, and is working with our Federal and international partners on
relevant aspects of the issue.

      The Agency  has  also worked  with the Quicksilver Caucus, a coalition of  State
government organizations formed to highlight their concerns about mercury  pollution.   The
Quicksilver Caucus issued draft reports in 2003 regarding how to meet mercury reduction goals
for specific water bodies where mercury pollution is caused primarily by air deposition, and safe
stewardship of mercury stocks and mercury-containing wastes58.

      EPA and DOE collaborated  on research on mercury treatment  and  alternatives for
managing mercury wastes and bulk elemental mercury. A report summarizing the work was
published in January 200359. To support policy decisions on long-term disposition of mercury
supplies that  may  no longer be  needed or  in demand, EPA will examine numerical data on
secondary-market recycling (retorting) and disposal, and renew research efforts to develop and
demonstrate a viable stabilization technology for mercury.

      EPA has worked with schools as well, to communicate to teachers, school administrators,
students, and parents the importance of reducing mercury in schools and the community.
Regional workshops and on-line training courses for teachers, as well as an expanded curriculum
package and a web site help to address health issues, cultural uses, mercury in schools, mercury
in the community, environmental effects, and history of mercury use.  In FY 2004 and 2005,
EPA will continue looking at new ways to promote additional reductions in mercury use, such as
through the voluntary Green Suppliers Network, and through continued support for regional and
State programs and partnerships.

      For enhancing mercury risk communication, the Agency will develop tools for educating
different audiences, including the general population, cultural fish eaters, and Tribes in the lower
48 States about the risks of eating mercury-contaminated fish and bioaccumulation in various
organs in fish-eating wildlife species.  We will measure the effectiveness of these risk
communication efforts by moving beyond anecdotal feedback to survey-based feedback.

      Asbestos/Fibers:  Asbestos is not a PBT, but  use and management of asbestos and
asbestos-containing products remains a matter of concern for EPA and other Federal agencies.
Asbestos is known to cause a variety of health problems when inhaled into the lungs.

      In 2002, EPA commissioned an Asbestos Strategies project  to take stock of the recent
experience and potential solutions and options regarding the use and management of asbestos. In
consideration of the recommendations of this document and the recent experience and public
concerns over mining and processing of vermiculite containing asbestos, EPA is in the process of
developing an Asbestos Action Plan. This new EPA Asbestos Action Plan,  including a Research
  www.sso.org/ecos
               y 29, 2003
                                        rv-so
59 68 FR 4481, January 29, 2003

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Agenda, will guide the future direction of its asbestos program.  EPA will focus its efforts to
reduce exposure to this fiber, which is known to cause various forms of cancer as well as certain
other diseases in humans.   In 2005, the  Agency will also address the development of fiber
science and fiber toxicity issues, and address the need to develop a definitive and accurate bulk
testing method for asbestos contamination in vermiculite attic insulation and other potentially
contaminated materials.

       In 2003,  the Agency  launched  a  public awareness  campaign  aimed  at asbestos-
contaminated  vermiculite attic  insulation.  In  FY 2004  and 2005,  outreach and technical
assistance will be expanded for the asbestos program for schools, in coordination with  the
Occupational  Safety and Health Admuiistration (OSHA), the Department of Education,  the
States, the National Parent-Teachers Association, and the  National Education Association. A
new project to determine and ultimately convey the risks to homeowners and remodelers from
asbestos-contaminated vermiculite home insulation is underway.  EPA also plans to conduct a
market analysis of  the asbestos products  and asbestos  contaminated products currently in
commerce.  To inform the public of the potential risks ,and sources of asbestos exposure,  the
Agency will  also continue developing outreach materials  such as the recently completed
Vermiculite Attic Insulation: Current Best Practices consumer guidance brochure.60

       EPA will  also continue to coordinate with other Federal agencies — including OSHA,
MSHA, NIOSH,  CPSC, ATSDR, and USGS - on asbestos issues.   In FY 2005, EPA will
continue to examine results from its studies into the potential for exposure to asbestos fibers
from vermiculite in building insulation materials.

Toxic Substances: Lead Risk Reduction Program

Categorical Grant: Lead

       Exposure  to  lead from deteriorated  lead-based paint  and other sources is the primary
cause of lead poisoning in children in the U.S. today. Children may ingest lead-based paint dust
or chips from flaking walls, windows and doors or when  lead-based paint is disturbed hi the
course of renovation, repair or abatement activity.  EPA has been implementing  a program to
establish  a national infrastructure  of  trained and certified  lead  remediation  professionals;
establish hazard control methods and standards to ensure that homeowners  and others have
access to safe, reliable and effective  methods to reduce children's exposure to lead-based paint;
and provide information to homeowners and  occupants so that they can make informed decisions
regarding lead-based paint hazards in their homes. This activity area also includes EPA's work
on addressing sources of lead exposure other than from lead-based paint.

       The lead categorical grant program provides assistance to States, territories, the District
of Columbia and  Indian Tribes to develop and carry out authorized programs for the training of
individuals engaged in lead-based paint activities, the accreditation of training  programs for
those individuals, and the certification of contractors engaged in  lead-based paint activities.
Similar activities  are  implemented  directly by EPA hi  States that  have not  been  granted
authorization for these functions.
60 U.S. EPA, Office of Pollution Prevention and Toxics and U.S. Health and Human Services Agency for Toxic Substances and
Disease Registry. Current Best Practice for Vermiculite Attic Insulation. EPA 747-F-03-001. May 2003. Washington B.C.
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       In recent years, EPA has focused on reducing children's exposure to lead in paint and
dust by crafting a regulatory framework to improve work practices associated with lead-based
paint and by educating parents and the medical community about the effects of lead poisoning
and steps that can be taken to prevent it. For example, EPA has promulgated rules to establish
training  and certification  programs  for lead  professionals,  and to establish  right-to-know
programs mandating disclosure of specific lead issues prior to real  estate transactions and
renovations.  EPA  has also managed the National Lead Information  Clearinghouse and has
produced many brochures and educational programs.

       The Agency has made great strides in reducing the incidence of childhood lead poisoning
through this combination of rulemakhig and education, coupled with research and partnerships
mainly with the Department of Housing and Urban Development (e.g., with States).  According
to data  from the National Health and Nutrition Examination Survey, for children one to five
years of age, the incidence of children with elevated blood lead levels  dropped from about
900,000 cases hi the early 1990s to approximately 434,000 cases hi 2000-2001. In addition, the
geometric mean blood  level for children ages one to five years decreased from 15 micrograms
per deciliter to two micrograms per deciliter from 1980 to 1999.61

       States contributed significantly to achieving EPA's goal of lowering children's blood
lead levels and reducing childhood lead poisoning.  Partnering with 37 authorized States, three
Tribes, and two territories, EPA has made substantial progress toward its goal of establishing a
national cadre of trained and certified lead-based paint abatement professionals. By the end  of
FY 2002, more than 4,000 workers were certified to employ EPA-required and recommended
work practices to reduce the primary remaining source of children's exposure to lead62.

       EPA is working with other Federal agencies, mainly HUD, HHS, and DOJ through the
President's  Task Force  on Environmental Health Risks and  Safety  Risks  to Children on
implementing  a Federal strategy to virtually eliminate lead poisoning.   In 2005,  EPA will
continue the lead-based paint training and certification program through EPA-authorized State,
territorial and Tribal programs and, in States and territories without EPA authorization, through
direct implementation by the Agency. EPA is  also continuing to work on the lead regulatory
framework.   In FY  2004, EPA plans to  work  on  rules covering  management of  lead-
contaminated debris and notification prior to abatement work.  EPA is continuing to implement
the  lead  hazard standards rule, the  lead  renovation  information rule  and the  real estate
notification and disclosure rule63.

       In FY 2005, EPA plans to proceed with a proposed rule on the de-leading of bridges and
structures. EPA will devote resources to this rule and other regulatory reviews to ensure that the
Agency has a seamless and synchronized program with a high likelihood of being effective hi the
highest risk areas.  Because much of the remaining incidence of lead poisoning occurs in low-
income, urban areas, new "Hotspots" initiatives that consider multiple sources of lead exposure
will focus on these populations.  EPA will initiate a voluntary program for remodelers and
renovators in order to  increase the use of lead safe work practices by this large industry.  In
partnership with other Federal agencies and State and local governments, we anticipate that these
61 Centers for Disease Control, National Center for Health Statistics. National Health and Nutrition Examination Survey: 1999-
2002. Available online at http://www.cdc.gov/nchs/iAanes.htm.
62 Certification status tracked via FLPP (Federal Lead-based Paint Program), an EPA automated system
63 40 CFR Part 745

                                         IV-52

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targeted measures will allow us to achieve our 2008 goal for reducing lead poisoning to 90,000
children  with elevated blood  lead  levels,  consistent with the Federal  government's goal of
virtually eliminating childhood lead poisoning by 2010.

Toxics Release Inventory/Right to Know

       By  using TRI information,  citizens, businesses, community groups, researchers, and
governments can work together to make informed decisions that will better protect human health
and  the  environment, in real-time and for  the  long  term.  TRI provides the public with
information on releases and other waste management activities of toxic chemicals.  Two laws,
Section 313 of the Emergency Planning and Community Right-To-Know Act and Section 6607
of the Pollution Prevention Act, mandate that EPA annually collect information on listed toxic
chemicals from certain  industries and make the  information  available  to the public through
various means, including a publicly accessible national database.

The  annual use of TRI-ME reporting software will continue to reduce the reporting burden on
the regulated community, increase data quality,  and allow EPA to make important facility
information available in a timely and effective way.

POPs Implementation

       EPA is developing an international  POPs Implementation Plan focusing on the priority
pollutants under the Stockholm Convention.   Goals of this plan include:  1) reduction in the
releases of POPs reaching the U.S. by long range transport; 2) reduction of sources of POPs hi
countries of origin, focusing on PCB-containing equipment, obsolete pesticides stockpiles, and
dioxins and furans emissions from  combustion sources; and 3)  better niter- and intra-country
coordination on POPs  implementation  activities by  improving  access  to POPs technical,
regulatory and program information on the  Internet.  In FY 2005, efforts to reduce releases and
transboundary transport of PBTs, initiated in FY 2004, will  continue.

       In FY 2005, EPA will continue
to monitor and  develop strategies  to
address atmospheric  and other long-
range transport of contaminants. For
example,     current     levels     of
contaminants   transported   to  and
deposited hi the  Arctic  region are a
concern.        Unless   preventative
measures  are  taken,   levels  will
increase  due  to continued  economic
growth and  transboundary transport
from the surrounding regions.  Long-
range transport of contaminants to and
from the U.S. is one of many concerns
within  a  larger  context  of  global
atmospheric exchange of contaminants
hi which all  countries  participate  as
both sources and receptors.
        ••&«•£ °^ 4PCTI&
       >!:?f:V$LOCei4tf\£>£
- *,
  y •    " '    **S(Nt' $
  fc-t /'«,^a-V
 -*- -&"&£-*
Mercury, POPs, and other pollutants are carried into the Arctic, and
trapped by circulation patterns Crane K., Galasso JL., 1999. Arctic
Environmental Atlas. Washington, DC. Office of Naval Research,
Naval Research Laboratory
  IV-53

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       The  Agency is increasingly concerned that progress made domestically to reduce our
mercury emissions will  be overwhelmed by atmospheric  transport of mercury from abroad.
International uses  and  emissions  of mercury contribute  an  estimated 40  percent of U.S.
atmospheric mercury deposition, with .an estimated one-third of all releases coming from fossil-
fuel burning in Asia.64 Once deposited in U.S. Territories, mercury quickly enters the food chain
with consequent risks to  human health.    In FY 2005,  EPA  will continue to expand the
geographic reach of its mercury monitoring, modeling and pollution prevention efforts. Mercury
is one of the three pollutants to be addressed by the Clear Skies Initiative.

       Since 1993, EPA has been actively promoting the phase-out of lead additives hi gasoline
on  the international level.  EPA is a founding partner in the  Partnership for Clean Fuels and
Vehicles.   Through the Partnership, the Agency works with  international organizations, the
private sector, and donor countries  to encourage the phase out of lead hi gasoline, the reduction
of sulfur levels in fuels, and the use of vehicle technologies to improve ah" quality.  In FY 2005,
EPA will focus its efforts on  Sub-Saharan Africa,  as it  is  more  severely  affected by lead
poisoning and pollution than any other region of the world. The vast majority of countries on the
African continent still use leaded gasoline, and the lead content of that gasoline is the highest hi
the world.  EPA will also implement Partnership activities  in other regions of the  world,
including the U.S.-Mexico Border region and China.
                                    Progress of leaded petrol
                                 phase out in Sub-Saharan Africa
                                                                      Fmtamaxy 2OO4  *
          United Nations Environmental Programme (UNEP), Partnership for Clean Fuels and Vehicles, UNEP. Accessible only
          through the Internet http://www.vmep.org/pcrV/Documents/M3pProgressSSA4-smJPG
       In this increasingly global economy, chemical risk identification and risk management is
a responsibility of all. EPA has been deeply involved hi international efforts to manage POPs and
select heavy metals (e.g., mercury), including hi the negotiation to establish the Stockholm
Convention on Persistent Organic Pollutants, a legally binding global convention on POPs.
64 U.S Environmental Protection Agency. Office of Air Quality Planning and Standards and Office of Research and
Development. Mercury Study Report to Congress (Volumes I- Vffl). EPA-452/R-97-003 through EPA-452/R-97-010. December
1997.
                                          IV-54

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Another important international agreement, the Rotterdam Convention on the Prior Informed
Consent (PIC) Procedure for Certain Hazardous Chemicals and Pesticides in International Trade
was signed in 1998, and will come into force once 50 countries have ratified it.

       State and Local Prevention and  Preparedness:  The Agency's  chemical emergency
preparedness and  prevention program  seeks  to decrease the  risks  associated with the
manufacture, transportation, storage and use of hazardous chemicals. The program is primarily
responsible for implementing the accidental release prevention provisions  of the Clean Air Act,
and the emergency preparedness authorities of the  Emergency Planning and Community Right-
to-Know Act (EPCRA).  The program also implements right-to-know initiatives stemming from
EPCRA,  to inform the public about chemical hazards and supports actions at the local level to
reduce risk. The cornerstone of the program is a belief that the operators of facilities who have
hazardous chemicals are  primarily responsible for the safe handling of those chemicals.  In
addition,  since the risks posed by these facilities are local issues, state and local governments (as
well as the community) play a critical role in risk reduction. EPA estimates that nationwide over
500,000 facilities have significant quantities of hazardous chemicals that are subject to EPCRA
requirements.

       All Americans benefit  from an effective chemical  safety program because hazardous
chemical substances are virtually everywhere and chemical accidents are an ever-present danger.
The facilities required to develop comprehensive Risk Management Plans (RMPs) reported over
1,900  accidents  over the  past  five-year period  involving deaths,  injuries, significant
property/environmental damage and/or evacuations/shelter-in-place.

       Section 112(r) of the Clean Air Act requires facilities that handle quantities of regulated
substances to develop RMPs and submit them to EPA, state  agencies,  and local emergency
planning  committees (LEPCs). Approximately  15,000 facilities have reported under the RMP
requirement to date.  Through this program, Federal, state, and local agencies  and the general
public have access to large amounts of information on the presence of chemicals in every
community and the potential hazards those chemicals present.

       The Risk Management Program regulations were built on practices currently used hi
many industries for process  safety management.   Each RMP describes the process  safety
management systems used by a facility for preventing accidents and documents the facilities'
compliance with the regulation.

       Each RMP identifies  and assesses the hazards posed  by on-site chemicals.   It  also
provides  a five-year facility accident history and outlines an accident prevention program and an
emergency response plan. The statutory deadline  for filing RMPs was June 1999.  While the
numbers  are still being tallied, EPA estimates that it will reach its goal of 90 percent compliance
by the end of 2003.  Since the statute requires RMPs to be updated every five years, facilities
will submit the next round of RMPs by June 21, 2004.  EPA will need to manage and screen the
reports hi a volume similar to the initial reports submitted in calendar year 1999.  Consistent with
its renewed focus on finding ways to improve facility safety, EPA will begin to analyze the data
from this second generation of RMPs, looking for  accident  trends and patterns in areas such as
industry sector, facility size, geographic region and  chemicals.
                                        IV-55

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       The Clean Air Act requires EPA to establish a system to audit RMPs.  The audit system
is used to continuously improve the quality of risk management programs  as well as check
compliance with the requirements.  In FY 2005, the EPA and other implementing agencies will
perform their audit obligations through a combination of desk audits of RMP plans and on-site
facility inspections. A total of 400 audits  will be conducted during this period. Audit selection
will be based upon several criteria, including accident history, patterns of noncompliance, types
and quantities of chemicals, and  geographic location.   In an  effort to  help implementing
agencies, states, and prospective third party auditors acquire or improve skills required to
conduct audits, EPA has identified  an RMP audit curriculum.   The  training will be offered
extensively throughout the country in FY 2005. In addition to auditing the quality of the RMPs
submitted, EPA will  continue to look for facilities that have not yet submitted their RMPs as
required.

       In FY 2005, in the regulatory area,  the program will complete Regulatory Actions on
changes to RMP submission and reporting requirements, as well as program adjustments to RMP
Info/Submit to accommodate regulatory changes.

       One of EPA's vital roles is to  help communities implement accident prevention and
emergency preparedness programs.  LEPCs (3,400 established under EPCRA) serve as the focal
point for discussions on reducing chemical risks at the local level. Under the EPCRA and RMP
programs, LEPCs take chemical inventory  information and information on how  facilities are
reducing the risk of accidents, and integrate  it into their emergency plans and community right-
to-know programs and community-wide accident prevention programs.  In FY 2005, EPA will
support LEPC efforts by providing tools, technical assistance and guidance to better enable them
to use the information to reduce risks.

       EPA, in partnership with states,  will continue the implementation of the RMP program
during FY 2005. Since nearly all facilities will be submitting updated RMPs in May 2004, EPA
will publicize the RMP program and undertake renewed efforts to promote state implementation.
The Agency believes individual states are best suited to implement the program because  they
benefit directly from its success and have established relationships with the communities that
may be at risk. EPA also believes that as state officials see their facilities achieve compliance,
they will  become motivated to seek delegation.   The Agency will continue to  emphasize
flexibility hi how states will be authorized to receive delegation and eventually implement the
RMP program themselves.  EPA will host an RMP implementing agency conference and will
work with states to secure agreements to partially implement the RMP program and help them to
develop and manage individual program components. In addition to this effort, EPA will provide
states a combination of grant assistance, technical support, training, and other outreach services
to help them fully develop and receive  delegation of the program.  EPA Regional offices will
continue to manage RMP programs hi those states that have not accepted delegation.
FY 2005 CHANGE FROM FY 2004
EPM
       (+$4,400,000): This increase is requested in the base Reregistration program to complete
       food use Registration Eligibility Decisions (REDs).  Reregistration of food use inert

                                        IV-56

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       ingredients and certain anti-microbials must be started in FY 2005 if the Agency is to
       meet our final statutory deadlines for tolerance reassessment in 2006.

       (+$1,000,000): This increase for the Endangered Species Program will fund activities to
       implement enhanced reviews developed in consultation  with the Fish  and Wildlife
       Service and the National Marine Fisheries Service. This will ensure that the licensed use
       of pesticides is not the cause of any species decline or extinction.

       (-$4,000,000):  This decrease to EPA's lead program reflects the successful reduction hi
       the number of children with  elevated blood levels, which has halved to approximately
       400,000 since the early 1990's and the decrease in geometric mean blood lead levels for
       children age one to five to two ug/dl. EPA will continue to develop the lead-based paint
       regulatory infrastructure mandated by Title X.  In addition, EPA will continue to .work as
       an active member  of the  President's Task  Force on  Environmental Health Risks and
       Safety Risks to Children to virtually eliminate lead poisoning in children by 2010.

       (+$1,331,700, +3.5 FTE):  This increase allows the TRI data flows to move through the
       Enterprise Portal.

       There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.
ANNUAL PERFORMANCE GOALS AND MEASURES

GOAL: HEALTHY COMMUNITIES AND ECOSYSTEMS

OBJECTIVE: CHEMICAL, ORGANISM, AND PESTICIDE RISKS

Annual Performance Goals and Measures

Decrease Risk from Agricultural Pesticides

In 2005     Ensure new pesticide registration actions (including new active ingredients, new uses) meet new health
           standards and are environmentally safe.

In 2005     Percentage of acre treatments that will use applications of reduced-risk pesticides

In 2004     Decrease adverse risk from agricultural uses from 1995 levels.

In 2003     124 safer chemicals and biopesticides were registered, 72 new chemicals were registered, and 425 new
           uses were registered. Date for acre-treatments is expected in 2004.

Performance Measures:                       FY2003       FY2004     FY2005
                                         Actuals       Pres. Bud.    Pres. Bud.
Register safer chemicals and biopesticides        124           131          135          Regist.
                                                                                (Cum)
New Chemicals (Active Ingredients)            72           74           84  .          Regist.
                                                                                (Cum)
New Uses                                 425           3,079        3,479         Actions
                                                                                (Cum)
Percentage of acre-treatments with reduced risk  Data lag       8.5%        8.7%         Acre-
                                                                                Treatments

                                           IV-57

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Performance Measures:                         FY2003       FY2004      FY2005
                                              Actuals        Pres. Bud.     Pres. Bud.
pesticides

Maintain timeliness of S18 decisions                                          45            Days

Reduce  registration  decision times  for  new                               7%            Reduction
conventional chemicals

Reduce registration decision times for reduced                               3%            Reduction
risk chemicals


Baseline:    The baseline for registration of reduced risk pesticides, new chemicals, and new uses,  is zero in the
            year 1996 (the year FQPA was enacted). Progress is measured cumulatively since 1996. The baseline
            for acres-treated is 3.6% of total acreage in 1998, when the reduced-risk pesticide acres-treatments was
            30,332,499 and  total (all pesticides)  was  843,063,644 acre-treatments.   Each year's  total acre-
            treatments,  as reported by Doane Marketing Research, Inc. serves as the basis for computing the
            percentage of acre-treatments using reduced risk pesticides. Acre-treatments count the total number of
            pesticide treatments each acre receives each year.  As of 2003, there are no products registered for use
            against  other potential bio-agents (non-anthrax).   Conventional pesticides FY 2002 baseline for
            reducing decision time is 44 months; reduced risk pesticides FY 2002 baseline for reducing  time is
            32.5 months.  The 2005 baseline for expedited new active ingredient pesticides is 4. The SI8 2005
            baseline is 45 days.

Reduce use of highly toxic pesticides

In 2005     Decrease occurrence  of residues of carcinogenic and cholinesterase-inhibiting neuortic pesticides on
            foods eaten by children from their average 1994-1996 levels

In 2004     Decrease occurrence of residues of carcinogenic  and cholinesterase-inhibiting pesticides on foods
            eaten by children from their average 1994-1996 levels.

In 2003     Data available in 2004.

Performance Measures:                         FY2003       FY2004      FY2005
                                              Actuals        Pres. Bud.     Pres. Bud.
Reduction of detections on a core set of 19 foods
eaten by children relative to detection  levels for  Data lag       25%          27%          Reduced
those foods reported in 1994-1996.                                                           Detections


Baseline:    Percent occurrence of residues of FQPA priority pesticides (organophosphates and carbamates) on
            samples of children's  foods in baseline years 94-96. Baseline percent is  33.5% of composite sample of
            children's foods: apples, apple juice, bananas, broccoli, carrots, celery, grapes, green beans (fresh,
            canned, frozen),  lettuce, milk, oranges, peaches, potatoes, spinach, sweet corn (canned and frozen),
            sweet peas (canned and frozen), sweet potatoes, tomatoes, and wheat.

Reassess Pesticide Tolerances

In 2005     Ensure that through ongoing data reviews, pesticide active ingredients, and products that contain them
            are reviewed to assure  adequate protection for human health and  the environment, taking into
            consideration exposure scenarios such as subsistence lifestyles of the Native Americans

In 2004     Ensure that through on-going data reviews, pesticide active ingredients and the products that contain
            them are reviewed  to assure adequate protection for human health and the environment, taking into
            consideration exposure scenarios such as subsistence lifestyles of Native Americans.
                                                IV-58

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Performance Measures:                         FY 2003
                                             Actuals
Tolerance Reassessment                        68%

Reregistration Eligibility Decisions (REDs)       75%

Product Reregistration                         306

Tolerance reassessments  for top 20 foods eaten  65.6%
by children

Number   of   inert  ingredients   tolerances
reassessed
Reduce decision time for REDs
              FY2004
              Pres. Bud.
              78%

              81.7%

              750

              83%


              100
              FY2005
              Pres. Bud.
              87.7%

              88.2%

              400

              93%


              100


              7%
              Tolerances
              (Cum)
              Decisions
              (Cum)
              Actions

              Tolerances
              (Cum)

              tolerances

              Reduction
Baseline:    The baseline value for tolerance reassessments is the 9,721 tolerances that must be reassessed by 2006
            using FQPA health and  safety standards.  The baseline for REDS is the 612  REDs that must be
            completed by 2008.  The baseline for inerts tolerances is 870 that must be reassessed by 2006.  The
            baseline for the top 20 foods eaten by children is 893 tolerances that must be  reassessed by 2006.
            Tribal Pilot of 2 models in FY 2003; total number of models to be determined (current estimate is 16-
            18). Reregistration decision time baseline 38-40 months.

Testing of Chemicals in Commerce for Endocrine Disruption

In 2005     Standardization and validation of screening assays
In 2004     Standardization and validation of screening assays
Performance Measures:

Screening Assays Completed
FY2003
Actuals
FY 2004
Pres. Bud.
11
FY2005
Pres. Bud.
11
                                           Screening
                                           assay
Baseline:    The non-prioritized universe of chemicals that  needs to be considered for prioritization includes:
            pesticide active  ingredients,  pesticide inert  ingredients,  chemicals  on  the TSCA  Inventory,
            environmental contaminants, food additives, pharmaceuticals, cosmetics, nutritional supplements, and
            representative mixtures. "Priority-setting" refers to the determination of priorities for entry into Tier 1
            Screening.  The baseline for the Tier 1 screening measure is zero in 1996 - no valid methods for
            endocrine disruptor screening and testing existed when FQPA was enacted in FY1996.

Process and Disseminate TRI Information - OEI

In 2005     The increased use of the Toxic Release Inventory Made Easy (TRI-ME) will result in a total burden
            reduction of 5% for Reporting Year 2004 from Reporting Year 2003 levels.

In 2004     The increased use of the Toxic Release Inventory Made Easy (TRI-ME) will result in a total burden
            reduction of 5% for Reporting Year 2003 from Reporting Year 2002 levels.
Performance Measures:                        FY2003       FY2004       FY2005
                                             Actuals        Pres. Bud.     Pres. Bud.
Percentage of TRI chemical forms  submitted  25            50            55
over the Internet using TRI-ME and the Central
Data Exchange.
                                           Percent
Baseline:    4.2 million hours for FY 2002.
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Reduce Wildlife Incidents and Mortalities

In 2005     Reduce from 1995 levels the number of incidents involving mortalities to nontargeted terrestrial and
            aquatic wildlife caused by pesticides

In 2004     Reduce Wildlife Incidents and Mortalities

Performance Measures:                         FY2003       FY2004       FY2005
                                              Actuals       Pres. Bud.      Pres. Bud.
Number of incidents and mortalities to terrestrial                 5              11             reduction
and aquatic wildlife caused by the 15 pesticides
responsible for the greatest mortality to such
wildlife
Baseline:    80 reported bird incidents  (involving 1150 estimated bird  casualties);  65 reported fish incidents
            (involving 632,000 estimated fish casualties) as reported in 1995.

Exposure to Industrial / Commercial Chemicals

In 2005     Reduce exposure to and health effects from priority industrial / commercial chemicals

In 2004     Reduce exposure to and health effects from priority industrial / commercial chemicals

Performance Measures:                         FY2003       FY2004       FY2005
                                              Actuals        Pres. Bud.      Pres. Bud.
Safe Disposal of Transformers                                  5,000          5,000         Transformers

Safe Disposal of Capacitors                                    9,000          9,000         Capacitors
number of children aged 1-5 years with elevated                 270,000       225,000       children
blood lead levels (>10 ug / dl)


Baseline:    1999/2000  baseline released  in January 2003: Approximately  400,000 cases of childhood lead
            poisoning cases according to NHANES data.  In 2004 a larger data set will be included as we will be
            expanding to include more EPA Regional efforts that will include all federally administered and State
            administered programs.  Introduced the "number of children aged 1-5 years" measure hi FY2004.
            Since the baseline is 1999/2000 data we are unable to project targets for 2004 and 2005 due to the
            data-lag. The FY2003 data for a new baseline may not be available until 2005.  The baseline for PCB
            transformers is estimated at 2.2 million units and for capacitors is estimated at 1.85 million units as of
            1988 as noted in the  1989  PCB Notification and Manifesting Rule.  From 1991-2001  there was a
            declining trend in PCB disposal due to failing equipment and  environmental liability: the total number
            of PCB large capacitors safely disposed of 436,485 and the total number of PCB transformers safely
            disposed of 172,672 as of 2002.

Risks from Industrial / Commercial Chemicals

In 2005     Identify, restrict, and reduce risks associated with industrial/commercial chemicals.

In 2004     Identify and reduce risks associated with international industrial/commercial chemicals.

In 2004     Identify, restrict, and reduce risks associated with industrial/commercial chemicals.

In 2003     Of the approximately 1,633 applications for new chemicals and microorganisms submitted by industry,
            ensure those marketed are safe for humans and the environment.  Increased proportion of commercial
            chemicals that have undergone PMN review to signify they are properly managed and may be potential
            "green" alternatives to existing chemicals in commerce.


                                               IV-60

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Performance Measures:
Number
Reviews
of  TSCA  Pre-Manufacture  Notice
Make screening level health and environmental
effects data publicly  available  for sponsored
HPV chemicals

Reduction  in  the  current  year  production-
adjusted    Risk    Screening    Environmental
Indicators  risk-based  score  of  releases  and
transfers of toxic chemicals.

High   Production   Volume   chemicals   with
complete  Screening  Information  Data  Sets
(SIDS)   submitted  to  OECD   SIDS   Initial
Assessment Meeting

Percentage  of chemicals identified as highest
priority by the Acute Exposure Guideline Levels
(AEGLs)  Program  with short-term  exposure
limits established.
FY 2003
Actuals
1,633
FY 2004
Pres. Bud.
1,700


1,300
                                                  9%
                                                  75
                                                                FY2005
                                                                Pres. Bud.
                             12%
                                                                 52%
              Notices
                                                                               cum.
                                                                               chemicals
                             Index
                                           chemicals
                                           Total
                                           Chemicals
Baseline:    The baseline for TSCA PMNs in FY2004 is zero.  (EPA receives about 1,700 PMNs per year for
            chemicals about to enter commerce. From 1979-2002, EPA reviewed about 40,000 PMNs. Of the
            78,000 chemicals potentially in commerce, 16,618 have gone through the risk-screening process of
            Notice of Commencement.) The baseline for HPV measure  is zero chemicals in 1998.  The baseline
            for the RSEI measure is the index calculated for 2001.  Baseline is 2002; calculation methodology by
            addition of AEGL values (10 minute, 1 hour, 4 hour and 24 hour exposure periods) and numbers of
            chemicals addressed.  There is a list maintained by the AEGL FACA committee of highest priority
            chemicals: 99 chemicals are on List 1 which was generated at the program's inception in 1996 and 137
            chemicals are highest priority on List 2 which was generated in 2001. Therefore the total of highest
            priority chemical stands today at 236 chemicals, however chemicals can be added or deleted from the
            list to fit stakeholder needs which is why we have  decided to provide  percentage targets.  2001 levels
            will serve as the baseline reference point for the percent reduction in relative risk index  for chronic
            human health associated with environmental releases of industrial chemicals in commerce as measured
            by Risk Screening Environmental Indicators Model analyzing  results to  date. Measurement
            Development Plans exist for HPV, VCCEP, and New Chemicals.

Chemical Facility Risk Reduction
In 2005
In 2004
In 2003
   Protect human health, communities, and ecosystems from chemical risks and releases through facility
   risk reduction efforts and building community infrastructures.

   Protect human health, communities, and ecosystems from chemical risks and releases through facility
   risk reduction efforts and building community infrastructures.
   Data available in March 2004.
Performance Measures:
Number  of
completed.
    risk   management  plan  audits
FY 2003
Actuals
Data lag
FY 2004
Pres. Bud.
400
FY 2005
Pres. Bud.
400   .
audits
Baseline:    By the end of FY 2001,438 risk management plan audits were completed.
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VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure: Percentage of TRI chemical forms submitted over the
Internet using the Toxic Release Inventory Made Easy (TRI-ME) and the Central Data
Exchange (CDX).

Performance Database: TRI System (TRIS).

Data Source: Facility submissions of TRI data to EPA.

Methods, Assumptions, and Suitability: As part of the regular process of opening the mail at
the TRI Reporting Center, submissions are immediately classified as paper or floppy disk.  This
information is then entered into TRIS. The identification of an electronic submission via CDX is
done automatically by the software.

QA/QC Procedures: Currently, the mail room determines whether a submission is on paper or a
floppy disk during  the normal process of entering and tracking submissions.  Electronic
submissions via CDX are automatically tracked by the software. With an increase in electronic
reporting via CDX, the manual mail room processing will be significantly reduced. Information
received via hard copy is double-key entered. During the facility reconciliation process, the data
entered are checked to ensure submission identification is accomplished at no less than 99 %
accuracy.  Accuracy is defined as accurate identification of document type.

Data Quality Reviews: Each month the Data Processing Center conducts data quality checks to
ensure 99 % accuracy of submission information captured in TRIS.
Data Limitations: Occasionally, some facilities send in their forms hi duplicative formats (e.g.,
paper,  floppy, and/or through CDX).   All submissions  are entered into TRIS.  The  Data
Processing Center follows the procedures outlined in the document "Dupe Check Procedures" to
identify potential duplicate submissions.   Submissions through CDX  override  duplicate
submissions through disk  and/or hard copy.  Floppy disk submissions override duplicate paper
copy submissions.

Error  Estimate: The error rate for "submission-type" data capture has been assessed to be less
than 1%. The quality of the data is high.

New/Improved Performance Data or Systems:  EPA continues to identify enhancements hi E-
reporting capabilities via CDX.

References: www.epa.gov/TRI

FY 2005  Performance  Measure;   Percentage of acre  treatments with  reduced  risk
pesticides.

Performance Database:  EPA uses  an external database, Doane Marketing Research data, for
this measure.

Data Source:  Primary source is Doane  Marketing Research, Inc. (a private sector research
database).

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Methods, Assumptions and Suitability:  A reduced-risk pesticide must meet the criteria set
forth in Pesticide Registration Notice 97-3, September 4, 1997. Reduced-risk pesticides include
those which reduce the risks to human health; reduce the risks to non-target organisms; reduce
the potential for contamination of groundwater, surface water, or other valued environmental
resources; and/or broaden the adoption of integrated pest management strategies or make such
strategies more available or more effective. In addition, biopesticides are generally considered
safer (and thus reduced-risk). EPA's statistical  and economics staff review data from Doane.
Information is also compared to prior years for variations and trends as well as to determine the
reasons for the variability.

Doane sampling plans and QA/QC procedures are available to the public at their website.  More
specific information about the data is proprietary and a subscription fee is. required.  Data are
weighted and  multiple regression procedure is  used to adjust for known disproportionalities
(known disproportionality  refers to a  non  proportional sample, which means  individual
respondents have different weights) and ensure consistency with  USDA and state acreage
estimates.

QA/QC Procedures: All registration actions must employ sound science and meet the Food
Quality Protection Act (FQPA) new safety standard. All risk assessments  are subject to public
and scientific peer review.  Doane data are subject to extensive QA/QC procedures, documented
at their websites.

Data Quality Review: Doane data are subject to extensive internal quality review, documented
at the website.  EPA's statistical and economics  staff review data from Doane.  Information is
also compared to prior years for variations and trends as well as to determine the reasons for the
variability.

Data Limitations: Doane data are proprietary; thus  in order to release any detailed information,
the Agency must obtain approval.

Error Estimate:  Error estimates differ  according to the  data/database and year of sampling.
Doane sampling plans and QA/QC procedures are available to the public at their website. More
specific information about the data is proprietary and a subscription fee is required.  Data are
weighted and multiple regression procedure is used to adjust for known disproportionalities and
ensure consistency with USDA and state acreage  estimates.

New/Improved Data or Systems:  These are not EPA databases; thus  improvements are not
known in any detail at this time.

References:   EPA  Website; EPA Annual Report; Annual  Performance Plan  and Annual
Performance Report, http://www.ams.usda.gov/science/pdp/download.htm; Doane  Marketing
Research,    Inc.:       http://www.doanemr.com:    http://www.usda.gov/nass/pubs   and
http://www.usda.nass/nass/nassinfo;  FFDCA Sec 408(a)(2); EPA Pesticide Registration Notice
97-3, September 4, 1997.

FY 2005  Performance  Measure:   Reduction   in  occurrences  of  carcinogenic  and
cholinesterase-inhibiting neurotoxic pesticide  residues on a core set of 19  children's foods
reported in 1994-1996

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Performance  Database: United States Department of Agriculture  (USDA) Pesticide  Data
Program (PDF).

Data Source:  Data collection is conducted by the states. Information is coordinated by USDA
agencies and cooperating state agencies.

Methods, Assumptions and Suitability: The information is collected by the states and inch e as
statistical information on pesticide use, food consumption, and residue detections, which pro ^de
the basis for realistic dietary risk assessments and evaluation of pesticide tolerance. Pesticide
residue  sampling and  testing procedures  are  managed by USDA's  Agricultural  Marketing
Service (AMS). AMS also maintains an automated information system for pesticide residue data
and publishes annual summaries of residue detections.

This measure helps provide information on the effect of EPA's regulatory actions on children's
health via reduction of pesticide residues on children's foods. The assumption is that through
reduction of pesticide residues on these foods, children's exposure to pesticides will be reduced;
thus, the risk  to their health diminished.  This measure contributes to the Agency's goal of
protecting human health and is aligned with the Food Quality Protection Act (FQPA) mandate of
protecting children's health.

QA/QC Procedures:  The core of USDA's PDP's QA/QC program is Standard Operating
Procedures (SOPs) based on EPA's Good Laboratory Practices. At each participating laboratory,
there is a  quality assurance (QA)  unit which operates independently  from the rest of the
laboratory  staff.  QA Plans are followed  as  the standard  procedure, with any  deviations
documented extensively. Final QA review is conducted by PDP staff responsible for collating
and reviewing data for conformance with SOPs.    PDP staff also monitors the performance of
participating laboratories through proficiency  evaluation samples, quality assurance internal
reviews, and on-site visits.  Additionally, analytical methods have been standardized in various
areas including analytical standards,  laboratory  operations, data handling, instrumentation and
QA/QC. With the exception of California, all samples of a commodity collected for PDP are
forwarded to  a single laboratory, allowing greater  consistency, improved QA/QC and reduced
sample loss. Program plans may be accessed at http://www.ams.usda.gov/science/pdp/SOPs.htm.

Data Quality Review:   In addition to having extensive QA plans to ensure reliability of the
data, the PDP follows EPA's Good Laboratory Practices in standard operating procedures. A
QA  committee composed  of quality assurance  officers is responsible  for annual  review of
program SOPs and for addressing QA/QC issues.  Quality assurance units at each participating
laboratory operate Independently from the laboratory staff and  are responsible for day-to-day
quality  assurance oversight.  Preliminary QA/QC review is done  at each participating laboratory
with final review performed by PDP staff for conformance with SOPs.

Data Limitations: Participation hi the PDP  is voluntary. Sampling is  limited to ten states but
designed in a manner to represent the food supply nationwide. The number of sampling sites and
volume vary by state. Sampling procedures are described at the website, see reference below.
Error Estimate: Uncertainties and other sources of error are minor and not expected to have any
significant effect on performance assessment. More information is available on the website (See
References).
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New/Improved Data or Systems: These are not EPA data; thus improvements are not known
in any detail at this time.

References:  PDF   Annual  Reports,   http://www.ams.usda.gov/science/pdp/download.htm;
http://www.ams.usda.gov/process/; CFR 40 Part 160; Food Quality Protection Act (FQPA) 1996;
http://www.epahome/Standards.htmlj_http://www.ams.usda.gov/science/pdp/SOPs.htm.

FY 2005 Performance Measures:

•      Number of Tolerance Reassessments issued.
•      Number of Reregistration Eligibility Decisions (REDs) issued.
•      Number of Product Reregistration decisions issued.
•      Tolerance Reassessments for top 20 foods eaten by children
•      Number of inert ingredients tolerance/tolerance exemptions reassessed.
•      Reduce decision times for REDs

Performance Database:   The OPPIN  (Office of Pesticide Programs Information Network)
consolidates various EPA program databases. It is maintained by the EPA and tracks regulatory
data submissions  and studies, organized by  scientific discipline,  which are submitted by the
registrant  in  support of a pesticide's  reregistration.   Additionally, manual counts of the
registrations of reduced risk pesticides are kept as backup and quality control.

Data Source: EPA's Pesticides Program.

Methods, Assumptions and Suitability:  The measures are program outputs which represent
the program's statutory  requirements to ensure that pesticides entering the marketplace are safe
for human health  and the environment and when used in accordance with the packaging label
present a reasonable certainty of no harm.  While program outputs are not the best measures of
risk reduction, they do  provide a means for  reducing risk in that the program's safety review
prevents dangerous pesticides from entering the marketplace.

QA/QC Procedures:  All registration actions must employ sound science and meet the Food
Quality Protection Act (FQPA) new safety standard. All risk assessments are subject to public
and scientific peer review.

Data Quality Review:  Management reviews the program counts and signs off on the decision
document.

Data Limitations: None known.

Error  Estimate: N/A. There are no errors associated with count data.

New/Improved Data or Systems: The  OPPIN, which consolidates various pesticides program
databases, will contribute to reducing the processing time for reregistration actions.
References:   EPA Website  http://www.epa.gov/pesticides EPA  Annual Report 2002 EPA
Number 735-R-03-001;  2003 Annual Performance Plan
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FY 2005 Performance Measure: Number of incidents and mortalities to terrestrial and
aquatic wildlife caused by the 15 pesticides responsible for the greatest mortality to such
wildlife.

Performance  Database:  The Ecological  Incident Information System (EIIS) is a national
database of information on poisoning incidents of non-target plants and  animals caused by
pesticide use.  The Environmental Fate and Effects staff for Pesticide Programs maintain this
database.

Data Source:  Data are extracted from written reports of fish and wildlife incidents submitted to
the Agency by pesticide registrants under the Federal Insecticide Fungicide and Rodenticide Act
(FEFRA), Section 6(a)(2), as well as incident reports voluntarily submitted by state  and Federal
agencies involved in investigating such incidents.

Methods, Assumptions and Suitability:  This measure helps to provide  information on  the
effect of EPA's regulatory actions on the well being of fish and wildlife.  The assumption is that
the number of incidents and mortalities to fish  and wildlife caused by pesticides will decrease
when use of those pesticides are curtailed or eliminated.

QA/QC Procedures: EPA employs a process  to  ensure data quality for this measure which
begins before entering an incident into the database.  A database program is used to screen for
records already in  the database with similar locations and  dates.  Similar records are then
individually reviewed to prevent duplicate reporting.  After each record is entered into the EIIS
database, an incident report is printed that contains all the data entered into the database.  A staff
member, other than the one who  entered the data, then reviews the information in the report and
compares it to the original source report to verify data quality.  Scientists using  the incident
database are also encouraged to report any inaccuracies they find in the database for correction.

Data Quality Review:  Internally and externally conducted data quality reviews related to data
entry are ongoing.  EPA follows a quality assurance plan for accurately extracting data from
reports and  entering  it into the EIIS database.  This  quality assurance plan is described in
Appendix D of the Quality Management Plan for pesticides programs.  When resources allow
incorporation  of wildlife  data  from  private  organizations, such  as the  American Bird
Conservancy, the new data and EIIS  data are reviewed for quality during data entry using the
same standards.

Data Limitations:   This  measure is designed to monitor trends in  the numbers of acute
poisoning events reported to the Agency.   Because the data are obtained, in part, through
voluntary reporting, the numbers of reported incidents may not accurately reflect the numbers of
actual incidents. Therefore, it is important to consider the possible factors influencing changes hi
incident reporting rates over time when evaluating this measure.

Error Estimate:  Moving average counts of number of incidents per year may be interpreted as
a relative index of the frequency of adverse effects that pesticides are causing to fish and wildlife
from acute toxicity effects. The indicator numbers are  subject to under-reporting, but trends in
the numbers over time may indicate if the overall level of adverse acute effects is improving or
getting worse. Even so, if there is an increase in bird kills since the baseline year, it may be due
to better tracking/reporting of kills rather than an increase or change in use of a pesticide.

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New/Improved Data or Systems: The EPA is currently conducting a project with the American
Bird Conservancy, reviewing the data in its Avian Incident Monitoring System  on bird kill
incidents caused by pesticides. These data will be incorporated into the EIIS.  The project is
expected to improve the quantity and quality of data in the EIIS database on avian incidents.

References:  The Ecological Incident Information System (EIIS) is an internal EPA database.
Federal Insecticide Fungicide and Rodenticide Act (FIFRA), Section 6(a)(2).
QMP:  Quality Management Plan for the Office of Pesticides Program, May 20, 2000

FY 2005 Performance Measures;

•      Number of registrations  of  reduced  risk pesticides  registered  (Register  safer
       chemicals and biopesticides).
•      Number of  new (active  ingredients)  conventional pesticides registered  (New
       Chemicals)(Cumulative).
•      Number of conventional new uses registered (New Uses)(Cumulative).
•      Number of new uses for previously registered antimicrobial products.
•      Maintain timeliness of Section 18 Emergency Exemption Decisions.
•      Reduce registration decision times for reduced risk chemicals

Performance  Database:  The  OPPIN (Office  of Pesticide Programs Information Network)
consolidates various pesticides program databases.  It is maintained  by the  EPA and tracks
regulatory data submissions and studies, organized by scientific discipline, which are submitted
by the registrant in support of a pesticide's registration.  Additionally, manual counts of the
registrations of reduced risk pesticides are maintained for quality control

Data Source: Pesticide program reviewers update the status of the submissions and studies as
they are received and as work is completed by the reviewers. The  status indicates whether the
application is ready for review, the application is in the process of review, or the review has been
completed.

Methods, Assumptions  and Suitability:   The  measures are program outputs which  when
finalized, represent the program's statutory requirements to ensure:  1) that pesticides entering
the marketplace are safe for human health and the environment, and 2) when used in accordance
with the packaging label present  a reasonable certainty of no harm. While program outputs are
not the best measures of risk reduction, they do provide a means for reducing risk, such that the
program's safety review prevents dangerous pesticides from entering the marketplace.

QA/QC Procedures: A reduced risk pesticide must meet the criteria set forth  in Pesticide
Registration Notice 97-3, September 4, 1997.  Reduced risk pesticides include those which
reduce the risks to human health; reduce the risks to non-target organisms; reduce the potential
for contamination of groundwater, surface water or other valued environmental resources; and/or
broaden the adoption of integrated pest management strategies, or make such strategies more
available or more effective.  In addition, biopesticides are generally considered safer (and thus
reduced risk).  All registration actions must employ sound science and meet the Food Quality
Protection Act (FQPA)  new safety standard. All risk assessments are subject to public and
scientific peer review.
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Data Quality Review:  These are program outputs. EPA staff and management review the
program outputs in accordance with  established policy for the registration of reduced-risk
pesticides as set forth in Pesticide Regulation Notice 97-3, September 4, 1997.

Data Limitations: None.  All required data must be submitted for the risk assessments before
the pesticide, including a reduced risk pesticide, is registered.  If data are not submitted, the
pesticide is not registered. As stated above, a reduced risk pesticide must meet the criteria set
forth in PRN 97-3 and all registrations must meet FQPA safety requirements.  If a pesticide does
not meet these criteria, it is not registered.  If an application for a reduced risk pesticide does not
meet the reduced risk criteria, it is reviewed as a conventional active ingredient.

Error Estimate: N/A

New/Improved Data or  Systems: The  OPPIN (Office  of Pesticide Programs  Information
Network), which consolidates various pesticides program databases, will reduce the processing
tune for registration actions.

References: FIFRA Sec 3(c)(5); FFDCA Sec 408(a)(2); EPA Pesticide Registration Notice 97-3,
September 4, 1997; Food Quality Protection Act (FQPA) 1996;

FY 2005 Performance Measure:  Number of children aged 1-5 years with elevated blood
lead levels (>10 ug/dL). This is the level that CDC defines as 'elevated' and indicative of the
need for intervention.

Performance Database: Centers for Disease Control and  Prevention's (CDC) National Health
and Nutrition Examination Survey (NHANES).

Data Source:  The National Health and Nutrition Examination Survey is a coordinated program
of studies designed to assess the health and nutritional status of adults and children in the U.S.
The program  began  in the  early  1960s  and  continues.  The  survey examines a nationally
representative sample of approximately 5,000 people each year located across the U.S.

Methods, Assumptions, and Suitability:  Detailed interview questions cover areas related  to
demographic, socio-economic, dietary,  and health-related questions. The survey also includes an
extensive medical and dental examination of participants, physiological measurements, and
laboratory tests.  Specific laboratory measurements  of environmental interest include: heavy
metals  (lead, cadmium, and mercury), VOC  exposures, phthalates,  organophosphates (OPs),
pesticides and their  metabolites, non-persistent pesticides,  dioxins/furans and polyaromatic
hydrocarbons (PAHs).  NHANES is unique in that it links laboratory-derived measurements  of
exposure (urine, blood etc.) to questionnaire responses and results of physical exams.

CDC has  published  both  the  "National  Report  on  Human Exposure  to Environmental
Chemicals,"  (March  2001)  and  the  "Second  National Report  on Human Exposure  to
Environmental Chemicals" (January 2003), which reflect findings from NHANES, including the
body burden of lead and other pollutants measured in the blood stream or urine. These reports
provide ongoing surveillance of the U.S. population's exposure to environmental chemicals.  The
2001 report provides  measurements of exposure to 27 chemicals based on  blood  and urine
samples from people participating in NHANES 1999. The 2003 Report expands the number  of

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chemicals to  100 (in order to include carcinogenic volatile organic compounds, carcinogenic
PAHs, dioxins and  furans, PCBs,  trihalomethanes, haloacetic  acids, and carbamate and
organochlorine pesticides).  Future reports will provide  additional details on exposure among
different populations  ~ stratifying results by gender, race/ethnicity, age, urban/rural residence,
education level, income, and other characteristics.  CDC will track these indicators over time.
Data will assist both public health officials and regulators in analyzing: 1) trends over time; 2)
the effectiveness of public health efforts; and 3) exposure variations among sub-populations.

QA/QC Procedures:  Quality assurance plans are available from both CDC and the contractor,
WESTAT, as outlined  on the  web  site   under  the
NH-ANES section.

Data Quality Reviews:  CDC follows standardized survey instrument procedures to collect data
to promote data quality, and data are subjected to rigorous QA/QC review.  CDC/NCHS has an
elaborate    data    quality    checking   procedure   outlined   on    the   web    site
 under the NHANES section.

Data Limitations: The NHANES survey uses two steps, a questionnaire and a physical exam.
For this  reason, there are sometimes different numbers of  subjects  in the interview and
examinations and special weighting techniques are needed.  Additionally, the number of records
in each date  file varies depending on  gender and age  profiles for the  specific components.
Demographic uiformation is collected but not available at the highest level of detail in order to
protect privacy.   Body burden data are  evidence of human exposure to toxic  substances;
however, linkages between evidence of exposure and source of exposure have yet to be made for
many substances. In the case of lead, the correlation is strongly documented.

Error Estimate:  Because NHANES is based  on a  complex  multi-stage sample  design,
appropriate sampling weights should be used in analyses to produce national estimates.  Several
statistical  methodologies  can be used to  account  for unequal  probability of the selection of
sample   persons.     The  methodologies  and   appropriate   weights   are  provided   at
www.cdc.gov/nchs/about/maior/nhanes/nhanes3/cdrom/nchs/MANUALS/NH3GUIDE  to  help
generate appropriate error estimates.

New/Improved Data or Systems: NHANES has  moved to an annual schedule.  The sample
design allows for limited estimates to be produced on an annual basis and more detailed
estimates to be produced on 3-year samples.

References:  "National Report on Human Exposure to Environmental Chemicals," (NCEH
Publication   Number   01-0164,  Atlanta,   GA:   March   2001),   [On   the   web   at
http://www.cdc.gov/nchs/nhanes.htm or http://www.cdc.gov/nceh/dls/report/];  more  extensive
findings  from NHANES are  in  the  "Second National Report on  Human Exposure  to
Environmental Chemicals"  (NCEH Publication Number 03-0022: Atlanta, GA January 2003)
[On the web at [http://www.cdc.gov/nchs/nhanes.htm, or http://www.cdc.gov/exposurereport/].

FY 2005 Performance Measure:  Reduce the  potential  for risks from leaks and spills  by
ensuring the safe disposal of large capacitors and transformers containing polychlorinated
biphenyls (PCBs).
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Performance Database: PCB Annual Report Database.

Data Source: Annual Reports from commercial storers and disposers of PCB Waste.

Methods, Assumptions, and Suitability:   Data provide a baseline for the amount of safe
disposal of PCB waste annually.  By ensuring  safe disposal of PCBs  in equipment such as
transformers and capacitors coming out of service, and contaminated media such as soil, and
structures from remediation activities, the Agency is reducing the exposure risk of PCBs that are
either already in the environment or may be released to the environment through spills or leaks.

QA/QC Procedures:  The Agency reviews, transcribes,  and assembles data into the Annual
Report Database.

Data Quality Reviews: The Agency contacts data reporters, when needed, for clarification of
data submitted.

Data Limitations: Data limitations include  missing submissions from commercial storers and
disposers, and inaccurate submissions. PCB-Contaminated  Transformers, of PCB concentrations
50  to 499  parts per million (ppm), and  those  that are  500 ppm PCBs or greater are not
distinguished in the data.   Similarly, large  and  small capacitors of PCB waste  may not be
differentiated.  Data are collected for the previous calendar year on July 1 of the  next year
creating a lag of approximately one year. Despite these limitations, the data do provide the only
estimate of the amount of PCB waste disposed annually.

Error Estimate: N/A

New/Improved Data or Systems: None

References: U.S EPA, Office of Pollution Prevention and Toxics, National Program Chemicals
Program, PCB Annual Report for Storage and Disposal of PCB Waste.

FY 2005 Performance Measure; Percent reduction in relative risk index for chronic human
health associated with environmental releases of industrial chemicals  in  commerce as
measured by Risk Screening Environmental Indicators (RSEI) Model.

Performance Database: The RSEI Model  uses annual  reporting  from individual  industrial
facilities along with a variety of other information to evaluate chemical emissions  and other
waste management activities. RSEI incorporates detailed data from EPA's Toxics  Release
Inventory (TRI) and Integrated  Risk Information System, the U.S.  Census, and many other
sources. Due to a TRI data lag, performance data will be unavailable for this measure when the
FY 2005 Annual Performance Report is prepared.  The data will be available for the FY 2007
report.

Data Source:  The wide variety of data used within RSEI were collected by Federal Agencies
(U.S. Census Bureau, EPA, U.S.  Geological Survey, Commerce Dept. - National Oceanographic
Atmospheric Administration, Dept. of Interior - U.S. Fish and Wildlife), state agencies (air
emissions and stack  data,  fishing license data),  and research organizations (Electric Power
Research Institute (EPRI), etc.) for  a  variety of national/state programmatic and  regulatory

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purposes, and for industry-specific measurements.

Methods, Assumptions and Suitability: The RSEI Model generates unique numerical values
known as "Indicator Elements"  using the factors  pertaining to  surrogate dose,  toxicity and
exposed population. Indicator Elements are unitless (like an index number, they can be compared
to one-another but do not reflect actual  risk), but proportional to the modeled relative risk of
each release (incrementally higher numbers reflect greater estimated risk). Indicator Elements are
risk-related measures generated for every possible combination of reporting facility, chemical,
release medium,  and exposure  pathway (inhalation  or ingestion). Each Indicator Element
represents a unique release-exposure event  and together these form  the  building blocks to
describe exposure scenarios of interest. These Indicator Elements are summed in various ways to
represent the risk-related results for releases users are interested in assessing.  RSEI results are
for comparative purposes  and only  meaningful when compared to other scores produced by
RSEI.  The measure is appropriate for year-to-year comparisons of performance. Depending on
how the user wishes to  aggregate, RSEI can address trends nationally, regionally, by state or
smaller geographic areas.

QA/QC Procedures:  EPA annually updates the data sources used within the RSEI model to
take advantage of the most recent and  reliable data.  For example, TRI facilities self-report
release data and  occasionally make errors.   TRI  has QC  functions and  an  error-correction
mechanism for reporting such mistakes.  Because of the unique screening-level abilities of the
RSEI model, it is possible to identify other likely reporting errors and these are forwarded to the
TRI Program for resolution. In developing the RSEI model, OPPT has performed numerous Q/C
checks on various types of data.  For instance, locational data for on-site and off-site facilities
have been checked and corrected,  and  this information is  being  supplied to the Office of
Environmental Information (OEI) and the Envirofacts database.

Data Quality Reviews:  RSEI depends upon a broad array of data resources, each of which has
gone through a quality review process tailored to the specific data and managed by the providers
of the data sources.  RSEI includes data from the Toxics Release Inventory (TRI), Integrated
Risk Information  System (IRIS), Health Effects Assessment  Summary Tables (HEAST), U.S.
Census, etc. All were collected for regulatory or programmatic purposes and are of sufficient
quality to be used by EPA, other Federal agencies,' and state regulatory agencies.  Over the
course of its development, RSEI has been the subject of three reviews  by EPA's Science
Advisory  Board  (U.S. EPA Office  of Pollution Prevention and Toxics, Risk Screening
Environmental      Indicators     Model,     Peer     Reviews.          Available     at
http://www.epa.gov/opptintr/rsei/faqs.html).

The RSEI model  has undergone  continuous upgrading since  the 1997 SAB Review.  Toxicity
weighting methodology was completely revised and subject to a second positive review by SAB
(in collaboration with EPA's Civil Rights program); air methodology was revised and ground-
truthed using New York data to demonstrate  high confidence; water methodology  has been
revised in collaboration with EPA's Water program.  When the land methodology  has been
reviewed and revised, EPA will have completed its formal, written response to the 1997 SAB
Review.

Data Limitations:  RSEI relies on data from a variety of EPA and other sources. TRI data may
have errors that are not corrected in the standard TRI QC process.  In the past, RSEI has

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identified  some  of these errors and corrections have  been made by  reporting companies.
Drinking water intake locations are not available for all intakes nationwide.   Where  intake
locations are known only at the comity-level, RSEI distributes the drinking water population
between all stream reaches in that county.  This could increase or decrease the RSEI risk-related
results depending on the pattern of TRI releases on the stream reaches in that county.  If the
actual uptake location is on a highly polluted stream reach, this approach would underestimate
risk by distributing the drinking water population to less-polluted reaches.  In coastal areas,
Publicly Owned Treatment Works (POTW) water releases may go directly to the ocean, rather
than nearby streams.   EPA is in the process of systematically  correcting potential  errors
regarding POTW water releases.  These examples are illustrative of the data quality checks and
methodological improvements that are part of the RSEI development effort. Data sources are
updated annually and all RSEI values are recalculated on an annual basis.

Error Estimate:   In developing  the  RSEI methodology, both sensitivity analyses  and
groundtruthing studies have been used to address model accuracy (documentation is provided on
the RSEI Home  Page - www.epa.gov/oppt/env_ind/). For example, groundtruthing of the air
modeling performed by RSEI compared to site-specific regulatory modeling done by the state of
New York showed virtually identical results in both rank order and magnitude. However, the
complexity of modeling performed hi RSEI, coupled with un-quantified data limitations, limits a
precise estimation of errors that may either over- or under-estimate risk-related results.

New/Improved Data or Systems: The program regularly tracks improvements hi other Agency
databases (e.g., SDWIS and Reach File databases) and incorporates newer data into the RSEI
databases.  Such improvements can also  lead to methodological modifications in the model.
Corrections hi TRI reporting data for all previous years are captured by the annual updates of the
RSEI model.

References:  The methodologies used in  RSEI were documented for the  1997 review  by the
EPA Science Advisory Board. The Agency has provided this and other technical documentation
on the RSEI  Home Page.  The Agency is revising  the  existing  methodology  documents
concurrent with  the  second  beta  release  of  RSEI  Version 2.0.  [RSEI  Home Page -
www.epa.gov/oppt/env_ind/]

U.S. EPA Office of Pollution Prevention and Toxics, Risk Screening Environmental Indicators
Model, Peer Reviews. Available at http://www.epa.gov/opptrntr/rsei/faqs.html

RSEI Methodology Document (describes data and methods used hi RSEI Modeling)

RSEI User's Manual (PDF, 1.5 MB) explains all of the functions of the model, the data used, and
contains    tutorials   to   walk    the   new   user   through    common   RSEI   tasks
(http://www.epa.gov/opptintr/rsei/docs/users_manual.pdf).

A more general  overview of the model can be found in the RSEI Fact Sheet (PDF, 23  KB)
(http://www.epa.gov/opptintr/rsei/docs/factsheet_v2-1 .pdf).

There are also seven Technical Appendices that accompany these two documents and provide
additional information on the data used hi the model. The Appendices are as  follows:
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Technical Appendix A (PDF, 121 KB) - Listing of All Toxicity Weights for TRI Chemicals and
Chemical Categories
Technical Appendix B (PDF, 290 KB) - Physicochemical Properties for TRI  Chemicals and
Chemical Categories
Technical Appendix C (PDF, 40 KB) - Derivation of Model Exposure Parameters
Technical Appendix D (PDF, 71 KB) - Locational Data for TRI Reporting Facilities and Off-site
Facilities
Technical Appendix E (PDF, 44 KB) - Derivation of Stack Parameter Data
Technical Appendix F (PDF, 84KB) - Summary of Differences Between RSEI Data and TRI
Public Data Release

FY 2005 Performance Measure: Establish  short-term exposure limits for 52 percent  of
chemicals identified as highest priority by the Acute Exposure Guideline Levels (AEGL)
Program.

Performance Database:  Performance is measured by the cumulative number of chemicals with
"Proposed", "Interim", and/or "Final" AEGL values.

Data Source: EPA manages a Federal Advisory Committee Act (FACA) committee that reviews
short term exposure values for extremely hazardous chemicals.  The supporting data, from both
published and unpublished sources and from which the AEGL values are derived, are collected,
evaluated, and summarized by FACA Chemical Managers and Oak Ridge National Laboratory's
scientists.  Proposed AEGL values are published for public  comment in the Federal Register.
After reviewing public comment, interim values are presented to the AEGL Subcommittee of the
National Academies of Sciences (NAS) for review and comment. After review and comment
resolution, the  National Research Council under the auspices of the National Academies  of
Sciences (NAS) publishes the values as final.

Methods, Assumptions, and Suitability:  The work of the National Advisory Committee's
Acute Exposure Guideline Levels (NAC/AEGL) adheres to  the 1993 U.S. National Research
Council/National Academies of Sciences (NRC/NAS) publication Guidelines for Developing
Community Emergency Exposure Levels for Hazardous Substances. NAC/AEGL, in cooperation
with the National Academy of Sciences' Subcommittee on AEGLs, have developed standard
operating procedures (SOPs), which are followed by the program. These have been published  by
the National Academies Press and are referenced below.

AEGL values approved as "proposed" and "interim" by the NAC/AEGL FACA Committee and
"final" by the National Academies of Sciences represent the measure of the performance. The
work is assumed to be completed at the time of final approval of the AEGL values by the NAS.

QA/QC Procedures: QA/QC procedures include public comment via the Federal Register
process, review  and approval by the FACA committee,  and review and approval  by the
NAS/AEGL committee and their external reviewers.

Data Quality Review: N/A

Data Limitations: N/A
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Error Estimate: N/A

New/Improved Data or Systems: This is the first time acute exposure values for extremely
hazardous chemicals have been established according to a standardized process and put through
such a rigorous review.

References: Standing Operating Procedures for Developing Acute Exposure Guideline Levels
for  Hazardous   Chemicals,   National  Academy   Press,   Washington,   DC   2001
(http://www.nap.edu/books/030907553X/html/).

FY 2005 Performance Measure:  Number of risk management plan audits completed

Performance Database: There is no database for this measure.

Data Source: EPA's Regional offices and the states provide the data to EPA headquarters.

Methods, Assumptions and Suitability:  Data are collected and analyzed by  surveying EPA's
Regional offices to determine how  many audits of facilities' risk management plans (RMPs)
have been completed.

QA/QC Procedures: Data are collected from states by EPA's Regional offices, with review at
the Regional and Headquarters' levels.

Data Quality Review: Data quality  is evaluated by both Regional and Headquarters' personnel.

Data Limitations:  Data quality is dependent on completeness and accuracy of the data provided
by state programs.

Error Estimate: Not calculated.

New/Improved Data or Systems: N/A

Reference: N/A


EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLANS

Pesticides Program

       In  addition to the newly  established efficiency measures, the  Office of Pesticide
Programs is creating a measures workplan to identify and plan for the development of outcome
measures and indicators for both human health and the environment.   Meaningful measures for
pesticides  require  coordination  and   cooperation with  other  organizations  for data and
information.  The workplan will  identify these partnerships  and  lay out the steps needed to
develop outcome measures and indicators for program goals.

       The efficiency measures presented for this goal set targets for improving the decision-
making tunes.   For example, by 2006,  the Agency will reduce reregistration time (issuance of

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Re-registration Eligibility Decision, or RED) by ten percent from the FY 2002 baseline, from the
initiation of public participation to the signed RED. Each year through 2008, EPA will make
safer pest management tools available sooner, and during 2005 will reduce the registration tune
for new active ingredients which meet the criteria for reduced risk pesticides by three percent.
By 2008, EPA will reduce registration decision times by ten percent for conventional new active
ingredients and five percent for reduced-risk new  active ingredients  (including biopesticides)
from the FY 2002 baseline.

       The processing times for reviews  and decisions are tracked through the new Office of
Pesticides Programs Information Network (OPPIN) computer system, which came on-line hi FY
2003.  Where process re-designs have already brought about significant savings (the section 18
process and the reduced risk registration process), the target will be to maintain the shorter times
through 2008.

Toxics Program

       Through 2008, the  Agency plans to reduce its per-chemical  review costs from 2002
levels.  This will be accomplished by training chemical developers to  use EPA's risk screening
tools early in research and development  so that the Agency receives at least  40 pre-screened
PMNs per year. For the New Chemicals Program, the next step will be to track trends associated
with the review  of chemicals undergoing  expedited review  under  the  Sustainable Futures
Initiative.  The Initiative is intended to  create cost savings for  industry; however the "pre-
screening" model should also provide efficiencies for EPA processes. Development of measures
is referenced in the Program Assessment Rating Tool (PART) summary hi the Special Analysis
section.
COORDINATION WITH OTHER AGENCIES

       Coordination with State lead agencies  and with the  U. S.  Department of Agriculture
(USDA) provides added impetus to the implementation of  the  Certification and  Training
program.  States also provide essential activities in developing and implementing the Endangered
Species and Worker Protection programs.  States are involved in numerous special projects and
investigations, including  emergency response efforts. The Regions provide technical guidance
and assistance to the States and Tribes in the implementation of all pesticide program activities.

       EPA uses a range of outreach and coordination approaches for pesticide users, agencies
implementing various pesticide programs and projects, and the general public.  Outreach and
coordination activities are essential to protect workers  and endangered species; to provide
training of pesticide applicators;  to promote integrated pest management and environmental
stewardship; and to support compliance through EPA's regional programs and those of the States
and Tribes.

       In addition to the  training that EPA provides to farm workers and restricted use pesticide
applicators,  EPA works with the State Cooperative Extension Services designing and providing
specialized training  for various groups.  Such training includes instructing private applicators on
the proper use of personal protective equipment and application equipment calibration, handling
spill and injury situations, farm family safety, preventing pesticide spray drift, and pesticide and

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container disposal. Other specialized training is provided to public works employees on grounds
maintenance, to pesticide control operators on proper insect identification, and on weed control
for agribusiness.

       EPA coordinates  with and  uses  information  from a  variety of Federal,  State  and
international organizations and agencies in our efforts to protect the safety of America's health
and environment from hazardous or higher risk pesticides.

       In  May 1991, the United States Department of Agriculture (USDA) implemented the
Pesticide Data Program (PDP) to collect objective and statistically reliable data on pesticide
residues on food commodities.  This action was in response to public concern about the effects of
pesticides on human health and environmental quality. EPA uses PDP data to improve dietary
risk assessment to support the registration of pesticides for minor crop uses.

       PDP is critical to implementing the Food Quality Protection Act. The system provides
improved  data collection of pesticide residues, standardized analytical and reporting methods,
and sampling of foods most likely consumed by infants and children.  PDP sampling, residue,
testing and data reporting are  coordinated by  the  Agricultural Marketing  Service using
cooperative agreements with ten participating States representing all regions of the country.  PDP
serves as a showcase for Federal-State cooperation on pesticide and food safety issues.

       FQPA  requires  EPA to consult with other government agencies  on major decisions.
EPA, USDA and FDA work closely together using both  a Memoranda of Understanding and
working committees to deal with a variety of issues that affect the involved agencies' missions.
For example, these agencies work together  on residue testing programs  and on enforcement
actions that involve pesticide residues on food,  and we coordinate our review of antimicrobial
pesticides.

       While EPA is responsible for making registration and tolerance decisions, the Agency
relies  on  others to carry out  some of the  enforcement activities.   Registration-related
requirements under FIFRA are enforced by the  States.  The Department of Health and Human
Services/Food and Drug Administration enforces tolerances for most foods and the United States
Department of Agriculture/Food Safety and Inspection Service enforces  tolerances for meat,
poultry and some egg products.

       Internationally, the Agency collaborates with the Intergovernmental Forum on Chemical
Safety (IFCS), the  CODEX Alimentarius Commission, the North American Commission on
Environmental  Cooperation  (NACEC),  the Organization for  Economic Cooperation  and
Development (OECD) and the North American Free Trade Agreement (NAFTA) Commission.
These activities serve to coordinate policies, harmonize guidelines, share information, correct
deficiencies, build  other  nations'  capacity  to  reduce risk, develop  strategies to deal  with
potentially harmful pesticides and develop greater confidence in the safety of the food supply.

       One of the Agency's most valuable partners on pesticide issues is the Pesticide Program
Dialogue  Committee (PPDC), which brings together a broad cross-section of knowledgeable
individuals  from organizations representing divergent views to discuss pesticide  regulatory,
policy and implementation issues.   The PPDC consists of  members  from industry/trade
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associations, pesticide user and commodity groups, consumer and environmental/public interest
groups and others.

       The PPDC provides a structured environment for meaningful information exchanges and
consensus building  discussions, keeping  the public involved in decisions  that affect them.
Dialogue with outside groups is essential if the Agency is to remain responsive to the needs of
the affected public, growers and industry organizations.

       EPA relies on data from HHS  to help assess the risk of pesticides to children. Other
collaborative efforts that go beyond our reliance on the data they collect include developing and
validating methods  to  analyze domestic  and imported food  samples for organophosphates,
carcinogens, neurotoxins and other chemicals of concern. These joint efforts protect Americans
from unhealthful pesticide residue levels.

       EPA's chemical testing data provides information for the Occupational Safety and Health
Administration's (OSHA) worker protection programs, the National Institute for Occupational
Safety and Health (NIOSH) for research, and the Consumer Product Safety Commission (CPSC)
for informing consumers about products through labeling.  EPA frequently consults with these
Agencies on project design, progress and the results of chemical testing projects. The National
Institute of Occupational Safety and Health (NIOSH), the Mine Safety and Health Association
(MSHA) and EPA meet monthly to coordinate on issues such as mercury recycling, a proposed
rule  on worker protection  for acrylamide, and  issues relating to vermiculite/asbestos at a
Superfund site in Montana. The Agency of Toxic Substances and Disease Registry (ATSDR)  has
asked  EPA to develop TSCA Section 4  testing actions for certain  chemicals that are found
frequently at Superfund sites.

       The Agency will work with a  full range of stakeholders on homeland security issues:
USD A, CDC, other federal  agencies,  industry  and the scientific  community.  Review of the
agents that may be effective against anthrax has involved GSA, State Department, UAMRIID,
FDA, EOSA, USPS, and others, and this effort will build on this network.

       The Acute Exposure  Guidelines (AEGL) program is a collaborative effort that includes.
ten Federal agencies (EPA, DHS, DOE, DOD, DOT, NIOSH, OSHA, CDC, ATSDR, and FDA),
numerous State agencies, private industry, academia, emergency medical associations, unions,
and  other organizations in the  private  sector.    The program also  has been  supported
internationally by the OECD and includes active participation by the Netherlands, Germany  and
France.

       The success  of EPA's lead  program is due in part to effective coordination with other
Federal agencies, States and  Indian Tribes through the President's Task Force on  Environmental
Health Risks and Safety Risks to Children.  EPA will coordinate with HUD to clarify how new
rules  may affect existing EPA and HUD regulatory programs, and with  the Federal Highway
Administration of the Department  of  Transportation and the  Occupational Safety and Health
Administration (OSHA) of the Department of Labor on worker protection issues.  EPA will
continue to work closely with State and Federally recognized Tribes to ensure that authorized
State and Tribal programs continue to  comply with requirements established under TSCA, that
the ongoing Federal accreditation  certification and training program for lead professionals is
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administered effectively, and that the States and Tribes adopt the Renovation and Remodeling
and the Buildings and Structures Rules when these rules become effective.

      EPA has a Memorandum of Understanding (MOU) with HUD on coordination of efforts
on lead-based paint issues.  As a result of the MOU,  EPA and HUD have co-chaired the
President's Task Force since 1997.  There are 14 other Federal agencies including CDC and the
Department of Defense (DOD) on the Task Force. In another joint effort, EPA, HUD, and the
National Institutes of Standards and Technology (NIST) have been working to identify reliable
at-home test kits for lead-based paint to recommend to do-it-yourself renovators.  HUD and
EPA also have a joint Lead Hotline and share enforcement of the Disclosure Rule.

      Mitigation of existing risk is a common interest for other Federal agencies addressing
issues of  asbestos and PCBs.  EPA will continue to  coordinate  interagency  strategies for
assessing and managing potential  risks from asbestos and other fibers.  Coordination on safe
PCB disposal  is an area of ongoing emphasis with the  Department of Defense (DOD), and
particularly with the U.S. Navy, which has special concerns regarding PCBs encountered during
ship scrapping. PCBs and mercury storage and safe disposal are also important issues requiring
coordination with the Department of Energy and DOD as they develop alternatives and explore
better technologies for storing and disposing high risk chemicals.

       Since  many agencies  at all levels of government have  authority to  regulate and
implement aspects of hazardous materials safety programs, coordination is essential for the
success  of EPA initiatives. On  the chemical accident preparedness and prevention  side,
interagency coordination remains  a  critical factor hi accomplishing  the  goals  of the  Risk
Management and EPCRA programs.  The Agency's role in carrying out these initiatives is to
provide leadership and support. EPA works hi partnership with States and local governments
and other organizations to promote actions to reduce risk.  EPA provides technical assistance and
tools to States and LEPCs so they can better utilize the  information on chemical hazards and
risks available to them.  In addition, through the rulemaking process, EPA works closely with
our Federal partners (DOJ, OSHA, and DOT) and with States to ensure compatibility with new
and  existing  accident  preparedness  and prevention initiatives.   Close coordination and  a
cooperative working relationship is also required to effectively meet our responsibilities in the
Chemical  Safety program,  most importantly where they involve the Chemical  Safety Board
(CSB).  EPA  has completed a memorandum of understanding  with  the CSB, which further
delineates this working relationship.

       The independent CSB  places responsibilities on  the Agency with regard to chemical
safety and accident  prevention. The same Clean Air Act provisions that established the CSB
require EPA to respond to the Board's recommendations and to provide support for its activities.
In 2005,  EPA expects to  continue to respond to CSB recommendations that result  from
investigations.  For  example,  EPA has  worked  with the  Occupational  Safety and  Health
Administration and the  CSB on two recommendations associated with reactive chemical process
safety arising from the Morton International chemical accident in New Jersey.

       To  conclude the international agreements on POPs,  heavy metals and PIC substances,
EPA must continue to coordinate with other Federal agencies and external stakeholders, such as
Congressional staff, industry, and environmental groups, to convey the U.S. approach and solicit
constructive criticism. EPA needs to ensure that the list of chemicals  and the criteria and process

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for evaluating future chemicals for possible international controls are based on sound science.
To illustrate, the Agency may typically coordinate with the  Food and Drug Administration
(FDA), FDA's National Toxicology Program, the Centers for Disease Control/Agency for Toxic
Substances and Disease Registry (CDC/ATSDR), the National Institute of Environmental Health
Sciences (NIEHS) and/or the Consumer Product Safety Commission (CPSC) on matters relating
to OECD test guideline harmonization.

      EPA's objective is to promote unproved health and  environmental  protection,  both
domestically and worldwide.   The  success  of  this objective is dependent on  successful
coordination not only with other countries,  but with various international organizations such as
the Intergovernmental Forum on Chemical  Safety  (IFCS), the North American Commission on
Environmental  Cooperation (NACEC), the  Organization for Economic Cooperation  and
Development (OECD), and the CODEX Alimentarius Commission.  The North American Free
Trade Agreement and cooperation  with  Canada and Mexico  play an  integral part in the
harmonization of data requirements.
STATUTORY AUTHORITIES

1909 Boundary Waters Agreement
1978 U.S./Canada Great Lakes Water Quality Agreement
1989 US/USSR Agreement on Pollution
1991 U.S./Canada Air Quality Agreement
1996 Habitat Agenda, paragraph 43bb
Chemical Safety Information, Site Security and Fuels Regulatory Relief Act
Clean Air Act (CAA)
Clean Water Act (CWA) (33 U.S.C. 1251_1387)]
Emergency Planning and Community Right-To-Know Act
Endangered Species Act
Federal Food, Drug and Cosmetic Act (FFDCA)
Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)
Food Quality Protection Act (FQPA) of 1996
North American Agreement on Environmental Cooperation (NAAEC)
North American Free Trade Agreement
Pollution Prevention Act
Resource Conservation and Recovery Act (RCRA)
Section 112r, Accidental Release Provisions of the Clean Air Act Amendments of 1990
Title III of the Superfund Amendments and Reauthorization Act (SARA) of 1986
Toxic Substances Control Act (TSCA)
U.S./Canada Agreements on Arctic Cooperation
World Trade Organization Agreements
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                         Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                       Healthy Communities and Ecosystems

OBJECTIVE: Communities

      Sustain, clean up, and restore communities and the ecological systems that support them.

                               Resource Summary
                               (Dollars in Thousands)

Communities
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
State and Tribal Assistance Grants
Building and Facilities
Inspector General
Total Workyears
FY 2003
Actuals
$313,167.7
$64,392.8
$2,324.5
$75.1
$243,985.7
$744.1
$1,645.5
327.5
FY2004
Pres. Bud.
$317,572.9
$83,379.9
$1,031.4
$0.0
$230,500.0
$666.8
$1,994.9
372.0
FY2005
Pres. Bud.
$319,958.4
$85,676.7
$1,039.9
$0.0
$230,500.0
$721.7
$2,020.1
369.6
FY 2005 Req. v.
FY 2004 Pres Bud
$2,385.4
$2,296.80
$8.50
$0.00
$0.00
$54.9
$25.2
(2.4)
                                 Program Project
                               (Dollars in Thousands)

Children and other Sensitive Populations
Congressionally Mandated Projects
Commission for Environmental Cooperation
Categorical Grant: Brownfields
Brownfields
Environment and Trade
Environmental Justice
Geographic Program: Other
Infrastructure Assistance: Brownfields
Projects
Infrastructure Assistance: Mexico Border
Regulatory Innovation
US Mexico Border
Regional Geographic Initiatives
Administrative Projects
TOTAL
FY 2003
Actuals
$3,074.7
$140.8
$4,069.6
$48,605.7
$22,613.4
$1,769.6
$3,813.9
$0.0
$81,953.4
$113,426.6
$6,724.4
$4,967.7
$0.0
$22,007.9
$313,167.7
FY2004
Pres. Bud.
$6,710.4
$0.0
$3,544.0
$60,000.0
$27,820.6
$1,702.6
$5,044.3
$0.0
$120,500.0
$50,000.0
$2,541.2
$6,484.4
$8,755.7
$24,469.7
$317,572.9
FY2005
Pres. Bud.
$6,801.1
$0.0
$3,531.7
$60,000.0
$28,002.3
$1,723.1
$5,130.5
$2,000.0
$120,500.0
$50,000.0
$2,642.7
$5,784.8
$8,799.5
$25,042.7
$319,958.4
FY 2005 Req. v.
FY 2004 Pres Bud
$90.7
$0.0
($12.3)
$0.0
$181.7
$20.5
$86.2
$2,000.0
$0.0
$0.0
$101.5
($699.6)
$43.8
$572.9
$2,385.4
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FY 2005 REQUEST

Results to be Achieved under this Objective

       Brownfields are real property, the expansion, redevelopment, or reuse of which may be
complicated by the presence or potential presence of a  hazardous substance, pollutant, or
contaminant and they are not traditional Superfund sites. Generally, Brownfields are not highly
contaminated properties and, therefore, present lesser health  risks.   Economic changes over
several decades have left thousands of communities with these contaminated properties and
abandoned sites.   Working with its state, Tribal, and local partners to meet its objective to
sustain, cleanup, and restore  communities and the ecological systems that support them, EPA
intends to achieve the following results in FY 2005:

•      assess 1,000 Brownfields properties
•      clean up 60 properties using Brownfields funding
•      leverage $1.0 billion in cleanup/redevelopment funding
•      leverage 5,000 jobs
•      train 200 participants, placing 65 percent in jobs.

       EPA's international work programs  under this objective are a critical component in
creating  sustainable and healthy communities because pollution knows no  boundaries. Many
environmental threats can be linked to activities that take place  along U.S. borders or through
transport  along air and water  currents.  Advancing  free  trade that includes environmental
provisions can sustain our communities and lower potential environmental risks  from air or
water  borne contaminants. Activities focus  on the U.S.-Mexico Border region; public health
problems,  North  American  environmental  issues  as  addressed by  the Commission for
Environmental Cooperation (pesticide exposure, sound management of chemicals, biodiversity,
and children's health), and the negotiation and implementation free trade agreements (FTAs) that
support trade without lessening environmental standards.

       The FY 2005 Request  includes funding for the Community Actions for  a Renewed
Environment (CARE) initiative, which is expected to result in measurable reduced exposures to
toxic pollutants including toxic  chemicals,  lead, pesticides,  particulates as  well as asthma
triggers.  Expected results also include increased acres of wetlands and miles of riparian forest
buffer restored and preserved.   Reductions in exposures resulting from diet  and subsistence
living  practices will also be measured.  This  initiative will help EPA achieve its Strategic Goals
of  Clean  Air, Clean  and  Safe Water,  Protecting  and  Restoring  the  Land, and Healthy
Communities and Ecosystems.

       In January 2001, EPA estimated water and wastewater  infrastructure  needs along the
U.S.-Mexico border through 2020 at $4.5 billion.65 EPA will  work with two key partners, the
Border Environment Cooperation Commission  (BECC) and the  North American Development
Bank,  which manages the Border  Environmental Infrastructure Fund (BEIF), to  support the
financing and construction of water and wastewater  treatment  facilities.    For FY 2005, the
65 U.S. EPA Office of Water. "Status Report on the Water and Wastewater Infrastructure Program for the U.S.-Mexico
Borderlands." January 2001. Available online at http://www.epa.gov/OW-OWM.html/mab/mexican/usmexrpt/finallb2.pdf

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Agency has established a goal that cumulatively 1.5 million people will be protected from health
risks because of the construction of adequate water and wastewater sanitation systems.

Categorical Grant: Brownfields

       EPA provides  both monetary and technical/legal assistance  to states  and  Tribes
developing and enhancing  response programs. The response  programs address contaminated
sites through assessment, oversight, and other mechanisms which do not require Federal action,
but need cleanup before the  sites are considered for reuse. Legislation also permits the recipients
to capitalize revolving loan funds,  purchase insurance or develop  risk sharing pools, or
indemnity pools, under the  states' response programs.   EPA believes that building strong and
effective state and Tribal programs, such as Voluntary Response Programs, will also complement
efforts to address the cleanup of Brownfields properties. Since the program's inception in 1995,
states, territories, and Tribes have received over $156,000,000 for state and Tribal Response
Program grants.

Brownflelds (EPM)

       The Brownfields program is designed to empower states, Tribes, local  communities and
other stakeholders in economic redevelopment  to  work together to prevent, assess,  safely
cleanup, and reuse Brownfields. Legal, administrative and resource management offices provide
support to the Agency's Brownfields programs administering rent, utilities, security costs, and
legal  advice.  EPA's Brownfields Initiative funds pilot programs and other research efforts,
clarifies liability issues, enters into Federal,  state,  and local  partnerships, conducts  outreach
activities, and creates job training and workforce development programs.

       In addition to supporting the operations and management of the Brownfields program,
funds  requested will also  provide  financial assistance for training on  hazardous waste to
organizations representing the interests of state and Tribal co-implementers of the Brownfields
law (SBLRBRA), and outreach support for environmental issues  involving Tribal and native
Alaskan villages or communities that  have been disadvantaged due to perceived  or  real
hazardous waste contamination.  EPA will also provide technical assistance to communities
which were awarded funding to combine smart growth policies with Brownfields redevelopment
or national groups which use the funding  to address  general issues of vacant properties and
infrastructure decisions.

       PART update: The Office of Management and Budget (OMB) evaluated the Brownfields
program using the Performance Assessment Rating Tool (PART) during  the FY 2005 budget
cycle. The program received a score of 51, which is an "adequate" rating.

       OMB found  that the  Brownfields program is  clearly articulated hi  its  authorizing
legislation, and is well managed, but that it would benefit from regular independent evaluations
and a systematic strategic planning process. In addition, while the program has reached many of
its performance goals, new goals, commensurate with funding, have not yet been put  into place.

       In response to these findings, the Administration will  assess and  cleanup Brownfields
sites at an accelerated rate. It will also work to develop more ambitious long term assessment
targets.

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Commission for Environmental Cooperation

       The Commission for Environmental Cooperation (CEC) was established hi 1993 under
the North American Agreement  on Environmental  Cooperation (NAAEC), a supplemental
agreement to the North American Free Trade Agreement (NAFTA). The CEC consists of a
Council, a Secretariat,  and  a Joint  Public  Advisory Committee. Executive  Order  12915
designates the EPA Administrator as the United States representative on the Council and gives
EPA lead responsibility for the U.S. Government regarding the CEC.

       In FY 2005, EPA will continue to coordinate U.S. involvement in programs related to the
NAAEC,  including oversight of  programs related  to connections  between  trade  and the
environment,   environmental  enforcement,   children's   environmental   health,  chemicals
management, and biodiversity. In addition to these specific activities, EPA will attend meetings
and coordinate U.S. Government positions hi response to advice of the Joint Public Advisory
Committee, and coordinate  meetings and respond to advice for the U.S. domestic National and
Governmental Advisory Committees for the CEC.  Transparency and public participation are
central elements hi all of CEC's work.

       In FY 2005, EPA will also provide oversight, guidance,  and  technical support for a
number of substantive CEC  projects in FY 2004. For example, EPA will implement a tri-national
strategic plan for biodiversity conservation, including the strategic development of a network of
protected marine areas hi North America. In the area of children's health and the environment,
building on  the  2004 review  of the Cooperative Agenda for  Children's Health  and the
Environment  in North America66, EPA will organize programs to address children's health risks
by developing educational workshops and reports on topics such as lead poisoning, asthma and
respiratory diseases, and economic valuation of children's environmental health threats. EPA will
continue to provide information and technical support for  the annual Taking Stock publication,
which CEC publishes  to measure  pollutant  releases across  North America. In  the area of
chemicals management, EPA will support implementing North American Regional Action Plans
on Mercury; Dioxins, Furans, and Hexachlorobenzene; and Lindane.

Environment and Trade

       Trade liberalization will lead to increased  economic activity - with the potential for
increased pollution. Environmental degradation can reach across borders, affecting the quality of
the regional and  global commons.  For example, mercury, persistent  bioaccumulative  toxics,
greenhouse gasses, and particulates are being carried hi the atmosphere around the globe and
may be contributing to the non-attainment of air quality standards.  Increasing fossil  fuel
combustion hi eastern Asia is affecting surface ozone hi the U.S., and arsenic, copper, and zinc
from smelting hi China have appeared hi Hawaii. In addition, increased shipments to the U.S. as
the result of trade liberalization carry the  increased potential for inadvertently contaminated
products entering the U.S.

       Congress, hi recognition of the growing awareness of the link between trade and the
environment, enacted hi the Trade Promotion Authority Act of 2002 (TPA) explicit priorities and
objectives for environmental issues, such as environmental reviews and capacity building. TPA
66 Commission for Environmental Cooperation, Council Resolution 02-06: Cooperative Agenda for Children's Health and the
Environment in North America, Available only on the Internet: http://www.cec.org/pubs_docs.
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also has provisions against lowering environmental standards to attract investment. As a result,
EPA has become increasingly involved with USTR and the Department of State in developing
US trade policy, as exemplified by the environmental provisions included in the NAFTA and
U.S.-Jordan trade agreements.

       In addition to specific obligations to enforce laws and not lower environmental standards
to  attract  investment,  TPA  objectives  include  promoting sustainable  development  and
consultative mechanisms to strengthen the capacity of United States' trading partners to develop
and implement standards for the protection of the environment and human health.  TPA also
requires the US to conduct  environmental reviews to predict the effects of the agreements.
Although TPA includes environmental objectives for trade negotiations such as commitments to
high levels of environmental protection and effective enforcement of environmental laws, many
negotiating partners lack the capacity to achieve those objectives.

       During FY 2002, EPA worked in an interagency process to harmonize environment and
trade policy, and on that basis, negotiate new FTAs. As  a result, two agreements that reached
conclusion in early FY 2003  (Singapore and Chile) contain environmental text and  include
processes for establishing and conducting  cooperative projects that harmonize environmental
protection and trade.   These  cooperative  projects are aimed at improving the  environment
worldwide through communicating environmental best practices and reducing the potential for
global and trans-boundary pollution.

       In FY 2003, the United States initiated four new free trade agreement negotiations. The
countries involved, together with the countries Included in the Free Trade Area of the Americas
(FTAA) negotiations, comprise 10 percent of the world's population. In each case, EPA will
promote the harmonization of environmental protection and trade, through negotiating the
agreements and by working with partner countries  to develop cooperative projects that will assist
them in maintaining or improving their environmental conditions. This work will continue into
FY 2005, when much of the work on cooperative projects will take place, and negotiations for
additional free trade agreements are expected to begin. An additional goal in FY 2004 is to
ensure that the Environment and Trade program will address an important data gap by
quantifying environmental impacts of potential trade agreements, allowing us to better measure
the results of our work.

       Throughout FY 2004 and beyond, EPA will be heavily involved in developing and
conducting environmental capacity building projects. Project discussions are being linked to
upcoming trade agreements that will enhance and protect the environment. In FY 2005, EPA
will continue to implement projects initiated in FY2004 and assist trade partner countries with
existing capacity building resources.

Environmental Justice

       EPA's environmental justice program will continue its  efforts to provide education,
outreach, and data availability initiatives. The Program provides a central point for the Agency
to  address  environmental  and  human  health  concerns  in  minority   and/or low-income
communities--  segments of the  population  that  have  been disproportionately exposed  to
environmental  harms  and risks.   The  program  will  continue  to manage the  Agency's
Environmental Justice  Community  Small  Grants  program,  assisting community-based

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organizations to develop solutions to local environmental issues.  The Community Small Grants
Program was established in 1994, and has awarded more than 973 grants of up to $20,000 each
to community-based organizations and others such as universities, Tribes, and schools.  As a
result,  community-based  organizations (i.e., grassroots groups,  churches, and other nonprofit
organizations)  are   expanding  citizen  involvement  and  awareness   about  exposure  to
environmental harms and risks,  and supporting local  efforts  to protect families  and their
communities.  These small grants have served as "seed-money" to empower the residents of
these communities,  which  has  allowing  them to  more  fully participate  in  Government
environmental decision making processes.

       In support of the Agency's environmental justice efforts, criminal investigations and civil
enforcement actions will focus on industries that have repeatedly violated environmental laws in
minority and/or low-income areas.  During the past several years, efforts have also been made to
encourage the use of alternative dispute resolution (ADR). In FY 2005, the Agency will increase
its capacity to resolve disputes, through training and multi-stakeholder partnering.  Through the
use of ADR, the Agency expects to reduce time and resources accompanying litigation; and
anticipates that decisions reached through the program will be more efficient and favorable for
all parties involved.

       In  FY 2005,  the Agency will continue to support the National Environmental Justice
Advisory  Council (NEJAC). The Council  provides  the Agency with significant input from
interested stakeholders such as community-based organizations, business and industry, academic
institutions,   state,  Tribal  and   local  governments, non-governmental  organizations,  and
environmental groups.  Six standing subcommittees have been created around EPA's broad
statutory mandates and are sponsored by the appropriate EPA office:  Air/Water; Enforcement;
Health/Research; Indigenous People; International; and Waste/Facility Siting.

       The Agency will also continue to chair an Interagency Working Group (IWG) composed
of 11 Federal agencies to ensure that environmental  justice concerns are incorporated into all
Federal programs.   In 2005, the IWG will continue its efforts to  work collaboratively and
constructively with all levels of government, and throughout the  public and private sectors. The
IWG will  effectively address the environmental, health,  economic and social challenges facing
our communities through the selection of fifteen new demonstration and revitalization projects.
These new projects will continue to implement the 2000 Action Agenda, which in the beginning
centered on fifteen demonstration projects hi diverse urban and rural communities, in virtually all
regions of the nation. By FY 2003, fifteen more demonstration projects were added. At present,
there are  30 existing demonstration projects throughout the country and fifteen  more  are
expected to be created hi FY 2005.  Plans for FY 2005  include selecting projects to achieve a
variety of goals, ranging from environmental cleanup, Brownfields and economic development,
and  children's health,  to community education  and  capacity  building.   To  date,  these
demonstration projects have leveraged more than $12 million hi public/private resources.

       The Agency supports state and Tribal  environmental justice programs and provides
outreach  and  technical  assistance  to states,  local  governments,  and  stakeholders  on
environmental justice issues.  In order to be able to respond to  an allegation of environmental
injustice, it is essential to identify the "affected geographic areas." In 2001, the Environmental
Justice Geographical Information System Assessment Tool was developed for the Internet to
provide all stakeholders with information about all geographic areas in the 48 contiguous states.

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The Environmental Justice Tool reflects environmental data available from the agency's data
warehouse and demographic data provided by the U.S. Census Bureau.  Links are provided to the
Department of Health and Human Services' health-related database.

       The Agency will also expand and refine its environmental justice training program.  In
FY 2002, a Fundamentals Workshop on Environmental Justice was developed.  In FY 2003, a
module on the issuance of permits under RCRA, CWA, and CAA was added to the course.  EPA
will provide 25 training sessions to over 750 individuals hi FY 2005.

Geographic Program: Other

       Many cities, towns and neighborhoods continue to express concerns about their exposure
to toxic pollutants from multiple sources.  While the media-specific authority and the national
scope of our programs have significantly reduced the overall exposure to toxic pollutants across
the country,  there  is  still  more to be  done to  reduce potential risks  at the local  level in
communities. Community Action for a Renewed Environment (CARE) is a multi-media effort
designed to reduce the burden of toxic pollutants in communities. The initiative will support the
development and implementation of community-based toxics reduction projects, similar to those
underway in Cleveland, St. Louis, Ponca City and South Phoenix. These projects are intended to
demonstrate that community-based approaches can be an effective way  of addressing diffuse
sources of toxic pollutants and cumulative risk by addressing issues  comprehensively and by
targeting solutions to the specific characteristics and needs of the community. This initiative will
encourage and support communities' efforts to focus resources on the greatest risks and build the
consensus needed to mobilize local  resources to  reduce exposures to toxic pollutants.  This
initiative will build on the wide range of current Agency efforts designed to address community
concerns such  as  Diesel  Retrofits,  Brownfields, National  Estuary Program,  Design for
Environment, Environmental Justice  Revitalization  Projects, Tools for Schools, and  RGI,
improving their effectiveness  by  working  to integrate them to  better meet the needs of
communities.

       Performance will  be measured and reported by  communities and regions.  EPA will
collect actions (such as diesel engines retrofitted)  and convert them to environmental outcome
measures (tons  NOx, PM, etc.) wherever possible.  Since the community will select the risk-
reduction projects, results will vary from community to community.  The central team will work
with programs to develop new  conversion metrics  or improve existing ones, as necessary.  This
program is expected to result  in measurable  results in the  reduction of exposures  to  toxic
pollutants including toxic chemicals, lead, pesticides, particulates as well as reduced exposure to
asthma triggers. Expected results also include increased acres of wetlands restored and miles of
riparian forest buffer restored  and preserved, reductions in exposures resulting from  diet and
subsistence living practices will also be measured.  This initiative will help EPA achieve its
Strategic Goals of Clean Air, Clean and Safe  Water, Protecting and Restoring the Land, and
Healthy Communities and Ecosystems

Infrastructure Assistance: Brownfields Projects

       The Brownfields  program coordinates  a Federal, state, Tribal, and local government
approach to assist in addressing environmental site assessment and cleanup.  In FY 2005, the
Agency will  provide  a total of $120,500,000 for assessment, Revolving Loan Fund (RLF),

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cleanup, job training, and petroleum grants as well as financial assistance to localities, states,
Tribes, and non-profit organizations for research, training, and technical assistance.

       In FY 2005 the Brownfields program will provide $29,000,000 in funding and technical
support for 126 assessments.   These assessments provide states (including U.S.  territories),
political subdivisions (including cities, towns, and counties), and federally-  recognized Tribes
with  necessary  tools,  information,  and strategies for promoting  a  unified approach  to
environmental site assessment, characterization, and redevelopment.

       The Agency provides funding for site assessment grants of up to $200,000 each.  By the
end  of FY 2004, EPA will cumulatively  award over  640 two year  assessment grants  to
communities to  assist them in assessing contamination at Brownfields sites.   These grants
include existing assessment, greenspace assessment, and showcase assessment-related activities.
More than 4,300 properties have had environmental assessments completed under the assessment
program since program inception.  EPA designed this assistance to enhance state, local and
Tribal governments'  capacity to assess  and clean up  properties under  state and Federal
environmental authorities, and facilitate the redevelopment and reuse of the properties. To date,
grants have leveraged over 25,000 cleanup, construction and redevelopment jobs.

       In addition, the Agency and its Federal partners will continue to support the existing  28
showcase communities which serve  as  models  to demonstrate  the  benefits of interagency
cooperative efforts in addressing environmental and economic issues related to Brownfields.
The showcase communities capitalize on a multi-agency partnership designed to provide a wide
range of support depending on  the particular needs of  each  community.   The Agency will
continue to provide technology support to localities, states and Tribes to ensure that the most
efficient and effective technologies are  used for Brownfields site assessment, cleanup, and
monitoring.

       Where appropriate,  the  Agency  provides funding   for  targeted assessments  hi
communities that are not successful in competing for an assessment grant.  Site  assessments at
non-grant Brownfields sites are performed under existing EPA contracts. This activity enjoys
wide  support  from cities and other local communities.  This funding provides preliminary
assessments and site investigations using standard methodologies established by, for example,
the American Society for Testing and Materials.

       To further enhance a community's capacity to respond to Brownfields redevelopment, the
Agency will also provide  $41,500,000 in funding to capitalize RLF and cleanup grants for  70
communities.  All communities with Brownfields properties are eligible to apply. The Agency
will award cooperative  agreements to capitalize RLF grants of up to $1,000,000 each.  EPA
offers  grants to governmental  entities which may provide subgrants to nonprofit or other
governmental entities. This funding enables eligible entities to develop cleanup strategies, make
loans to prospective purchasers to clean up properties, and encourages communities to leverage
other funds into their RLF pools and cleanup grants.  The Agency also provides direct cleanup
grants of up to $200,000 per site to communities and non-profits.

       The Brownfields law (SBLRBRA) authorized the cleanup of petroleum sites. EPA will
use approximately $30,300,000  for the  assessment and cleanup of abandoned underground
storage tanks (USTs) and other petroleum contamination found on Brownfields properties. This

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funding will clean up a portion of the estimated 200,000 abandoned petroleum tanks found at
sites.  With these funds, EPA will support assessment and cleanup of petroleum contamination in
approximately 60 Erownfields communities. In FY 2003, EPA funded 50 grants which targeted
clean up of petroleum contamination.

       In addition,  in FY 2005, the  Agency will award Brownfields job  training and
development  grants  at up to $200,000  over two  years  to help residents  of  Brownfields
communities  take advantage  of new jobs leveraged by the assessment  and cleanup  of
Brownfields.  To augment the communities' capacities to clean up Brownfields sites, EPA will
provide $2,500,000 to fund 10 new job training grants for community residents, and will provide
$3,000,000 to the National Institute of Environmental Health Sciences (NIEHS) to supplement
its minority worker training programs that  focus  on Brownfields  workforce development
activities. This will result in a cumulative total of 86 job-training grants, resulting in the training
of almost 2,000 participants since 1998 and an annual average of 65 percent job placement.

       By the end of FY  2005, the Brownfields assessment, RLF, and cleanup grants should
leverage over  $7,500,000,000 in public and private investment, and leverage 33,000 jobs in
cleanup, construction, and redevelopment, with 6,800 properties assessed.

       The Agency will also continue to provide funding  for training, research and  technical
assistance to localities, states, Tribes and nonprofit organizations to ensure that the most efficient
and effective technologies are used for Brownfields site assessment, cleanup, and monitoring. In
addition, EPA will continue to  explore connections between RCRA low-priority corrective
action efforts and cleanup of Brownfields properties.

Infrastructure Assistance: Mexico Border

       EPA is working along the Mexican Border to reduce transboundary threats to human and
ecosystem health in North  America.  Border communities face unique environmental and
coordination challenges. The U.S.-Mexico Border 2012 Program, a joint effort between the U.S.
and Mexican  governments,  will  work with the 10  border-states and local communities  to
improve the region's  environmental health.  To help bridge the coordination issues, four regional
workgroups and Policy Forums will collaborate with local communities to set priorities and plan
and implement projects.   These  groups  will also assist in establishing  objectives, defining
indicators, and measuring progress.

       The US and Mexico Governments will work to improve water quality along the border
through a range of pollution control sanitation projects, with the goal of restoring the quality of
at least half of the currently impaired significant shared and  transboundary surface waters by the
year 2012.  For example, EPA is working with Mexican officials to develop  baseline information
concerning the number of homes lacking access to basic sanitation and wastewater treatment
systems, in support of the  Border 2012 goal of increasing by 25 percent the number of homes
with access to drinking water and sewage treatment systems (baseline of 1999).

       One focus of Border 2012 will be improved water quality hi the  region.  Because of
inadequate drinking water and sewage treatment, border residents suffer disproportionately from
hepatitis A and other water-borne diseases. By increasing the number of connections to potable
water systems, EPA and its partners will reduce health risks  to residents who may currently sack

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access to safe drinking water.  Similarly, by increasing the number of homes with access to basic
sanitation, EPA and its partners will reduce the discharge of untreated domestic wastewater into
surface and ground water.  Our planned assessment of shared and transboundary surface waters
will facilitate  the  collection, management,  and exchange  of environmental data essential for
effective water management.
                           U.S./Mexico Border:
                          Cumulative Number of People Connected
                             to Water and Wastewater Systems
                              Source: Border Environment Cooperation
                               Commission: Certification Documents
Regulatory Innovation

       EPA's community-based approach provides integrated assessment tools and information
for environmental protection in partnership with local, state, and Tribal governments.  EPA's
Regions also  provide direct assistance to communities to  assist them hi implementing local
environmental management efforts and in building capacity for local problem solving.  In FY
2005, EPA will continue to support over 150 demonstration projects assisting local community
environmental planning  and  management.    These
projects  strengthen   local  and   intergovernmental
partnerships  to address risks to  human health and
ecosystems that  provide goods and  services to  our
communities.67     Specifically,  EPA  will   provide
assistance  to  communities and states to  help  them
identify the integrated set of local environmental issues
and develop strategies to address interconnected issues
with appropriate regulatory and non-regulatory  tools.
EPA will also provide  tools and information to build
better stakeholder involvement and assist communities
in  conducting assessments of environmental issues.
EPA  will assist local communities  in  identifying
Smart growth is development that serves
the   economy,  community,  and  the
environment. It provides a framework for
communities to make informed decisions
about how and where they grow.  Smart
growth makes it possible for communities
to grow in ways that support economic
development  and  jobs;  create  strong
neighborhoods  with a range of housing,
commercial,  and transportation options;
and   achieve healthy  communities  that
provide   families   with    a   clean
environment.
67 www.epa.gov/smartgrowth/
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measures of performance to enlighten local decisions and assess the value of various models of
community-based efforts.  EPA will also conduct evaluations of existing projects to assess and
fine-tune its own approaches and to derive direction for future demonstrations.

       The Agency will more effectively integrate and manage EPA's resources and efforts that
are currently available for promoting environmental quality at  the community and state level.
The Agency will focus on improving environmental quality by:  (1) removing barriers and
creating  incentives  for environmentally  beneficial development;  (2) developing  tools  and
technical assistance (e.g., the Smart Growth Index); (3)  leveraging EPA's resources to provide
and disseminate information  (e.g., through web sites  and publications); (4) forming multi-
disciplinary, multi-lateral partnerships among public and private sector stakeholders; and (5)
identifying and conducting research related to environmental quality  impacts associated with
development patterns and practices.

U.S.-Mexico Border

       Communities along the 2,000 mile U.S.-Mexico border are experiencing rapid economic
and population growth, much of it driven by increased trade  between the countries,  as well as
environmental  problems.  The border population is now at 11.8 million and is expected to
increase  by 7.6 million by 202068. The development of new environmental infrastructure has not
kept pace with this growth and as a
result  the  area  is  experiencing
water       scarcity,       serious
gastrointestinal   and   respiratory
illness,  and  hazardous  and  non-
hazardous
problems69.
               waste     disposal
                                                                                     ,t"
       The   U.S.-Mexico  Border
Program will protect public health
and the environment in the border
region by increasing the number of
people  with adequate  water  and
wastewater  sanitation systems by
financing   water    infrastructure
improvements  and  educating  the
communities along the Rio Grande
about drinking water and public health issues. The Program will minimize risks from pesticides
by training farmers on pesticide risks and safe handling.  It will increase the number of Mexican
corporations with implemented pollution prevention  controls by  expanding hazardous waste
management and pollution prevention practices.  The Program will increase the number of sister-
cities with joint contingency plans by improving chemical safety and emergency preparedness hi
the border region.
  U.S. EPA and Mexico Secretariat for the Environment and Natural Resources. "Border 2012: U.S.-Mexico Environmental
Program." EPA 160-R-03-001 Available on the Internet: http://www.epa.gov/usmexicoborder/pdf/2012_english.pdf. April,
2003.
69 U.S. EPA and Mexico Secretariat for the Environment and Natural Resources. "Border 2012: U.S.-Mexico Environmental
Program." EPA 160-R-03-001 Available on the Internet: http://www.epa.gov/usmexicoborder/pdf/2012_english.pdf. April,
2003.
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       The U.S.-Mexico Border 2012 Program, a joint effort between the U.S. and Mexican
governments, will work with the 10 border states and with local communities to improve the
regions environmental health.  In FY 2003, EPA, in close cooperation with the SEMARNAT
(EPA's Mexican counterpart), other Mexican agencies, the U.S. border states, U.S. Indian Tribal
Nations and U.S. and Mexican NGOs and academic institutions, developed a new program for
the border, Border 2012: U.S.-Mexican Environment Program70, that will focus limited resources
in areas which can most directly lead to  improvements in public health and environmental
conditions in this area.  The Border 2012 Program transfers to the states and local communities
the responsibility to set priorities and manage program implementation  based on explicit
environment and public health goals and objectives with measurable outcomes.

       In addressing overall transboundary threats to human and ecosystem health along the
U.S.-Mexico border region, the Border 2012 Program
will   focus  on:  1)  protecting  human health;  2)
improving air quality through monitoring and control
strategies; 3) funding wastewater and drinking water
infrastructure    investments    hi     under-served
communities;  4)   managing  chemical  accidents
through    completing   joint   chemical   accident
contingency plans; 5) supporting pollution prevention
programs that  will, over the  long term, reduce the
adverse   health   and   environmental  effects   of
pollutants;  6)  reducing  and  effectively managing
hazardous and solid wastes through using tracking
mechanisms; 7) strengthening bi-national cooperation
between institutions responsible for enforcing their
respective country's environmental laws; and 8) strengthening coordination of pesticide activities
linking the work on regulatory harmonization with field implementation projects to protect field
workers and assure safe food supplies.71

       One focus of Border 2012 will be
improved  water quality in the region.
Because of inadequate water and sewage
treatment,   border   residents    suffer
disproportionately from hepatitis A  and
other   water-borne   diseases.      By
increasing the  number of connections  to
potable  water  systems,  EPA  and  its
partners  will  reduce  health  risks   to
residents  who may currently lack access
to safe drinking  water.   Similarly,  by
increasing the number of homes with access to basic  sanitation, EPA and its partners will reduce
the discharge of untreated domestic wastewater into surface and ground water.  Our planned
           US EPA. Picture of open sewage canal and flooded
           roadway in a US/Mexico border community
US EPA. Picture of the effluent disposal channel from Zaragosa
wastewater treatment olant in Mexicali. Mexico.
70 U.S. EPA and Mexico Secretariat for the Environment and Natural Resources. "Border 2012: U.S.-Mexico Environmental
Program." EPA 160-R-03-001 Available on the Internet: http://www.epa.gov/usmexicoborder/pdf/2012_english.pdf. April,
2003.
71 U.S. EPA and Mexico Secretariat for the Environment and Natural Resources. "Border 2012: U.S.-Mexico Environmental
Program." EPA 160-R-03-001 Available on the Internet: http://www.epa.gov/usmexicoborder/pdf/2012_english.pdf. April,
2003.
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assessment  of  shared  and transboundary  surface  waters  will  facilitate  the  collection,
management, and exchange of environmental data essential for effective water management.  By
2005, the Border 2012 Program will promote the assessment of 10 percent of the existing water
systems in the border cities to identify opportunities for improvement  in overall water system
efficiencies.

       In the effort to help safeguard the health of border residents by protecting and improving
border air quality, the Border 2012 will continue the effort hi FY 2005 to define baseline and
alternative  scenarios for emissions reductions along the border and their impacts on air quality
and human exposure.  Based on results obtained from  defining baselines and scenarios,  the
program can define  specific emission reductions strategies and air quality and exposure
objectives to be achieved by 2012.

       As part of the goal to reduce land contamination, the Border 2012 will continue the effort
in FY  2005 to  identify needs  and develop  an  action plan  to  improve  institutional  and
infrastructure capacity for waste  management  and pollution prevention as  they pertain to
hazardous and solid waste and toxic substances along the U.S.-Mexico border. The plan will be
implemented in FY  2005  and concluded by  2012. Waste "management  capacity" (both
institutional and in terms  of infrastructure) means  having the  techniques, organizations,
expertise, and technology to effectively handle and dispose of waste. Where a lack of capacity is
identified, the Border 2012 program will work  to develop the needed capacity to ensure  the
appropriate management of waste.  In 2005, EPA will fund removal of surface drums, sacks, and
some soil for proper disposal to a hazardous waste facility in the U.S. This site has abandoned
leaking drums and sacks with toxic concentrations of lead, as well as some surface level soil  hot
spots with extremely high lead concentrations.  This action would be much like a small targeted
Superfund  removal that stabilizes  a  site before  a  more permanent remedy.  The project will
demonstrate swift, significant results to the Mexican community downhill from the site.

       Also in  FY 2005, the Border 2012 will  continue the effort to evaluate the hazardous
waste tracking systems in the United States and  Mexico. Currently, both the United States and
Mexico have their own, separate computer systems for  tracking the movement of hazardous
waste across the border.

       An EPA funded project will develop Fire Prevention Plans in conjunction with tire pile
operators and pre-incident plans in  conjunction with emergency responders in an effort to
prevent waste tire pile fires on the border through an assessment of Mexican tire pile sites. EPA
will also continue the effort to extend current efforts in bi-national environmental health training
for 100 health care providers each for pesticides and water.

       The Border 2012 will continue the  effort to develop a bi-national policy of clean up and
restoration resulting in the productive use of abandoned sites contaminated with hazardous waste
or materials, along the length of the border, in accordance with  the laws of each country.   By
2007, this policy is targeted to apply at least once in each of the four geographic regions. There
are a number of contaminated sites in the border region  that are of concern to both countries.
Mexico and the United States will develop a policy on having sites cleaned up and restored to
productive use. The policy also will identify priority sites in the border area.
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       Finally, as part of an effort to reduce exposure to  chemicals as a result of accidental
chemical releases and/or acts of terrorism, the Border 2012 will continue the effort in FY 2005 to
establish joint contingency plans for all 14 parrs of sister cities.  By 2008, these plans will be in
place and operating (including exercises), with the establishment of bi-national committees for
chemical emergency prevention (or similar border forums).

Children and Other Sensitive Populations

       EPA will also continue its commitment to protect children's health as a member of the
President's Task Force on Environmental Health and Safety Risks to Children. 72  The Agency
will direct resources toward  the  programs that  reduce risks to children from  a range  of
environmental hazards.  In 2005, the Agency will focus on research and analyses to provide
scientific and economic information needed to address the heightened risks faced by children
from environmental contaminants.  The Agency will continue to work with HHS to decrease the
frequency and severity of asthma attacks in children through reduction and avoidance of key
asthma triggers, including environmental tobacco smoke, prevalent indoor allergens and ambient
air pollution. The Agency will continue efforts with HUD to reduce children's exposure to lead,
particularly in low income minority  neighborhoods where children living in older housing are
much more likely to be exposed  to lead.  The Agency will also continue to work with the states
and other  partners to identify  and  address environment  issues in  schools that may affect
children's health. EPA will continue to build partnerships and work with other Federal agencies,
states, health  care  providers,  and  international  organizations to incorporate  children's
environmental health into their programs and activities.

       Additionally, the Office of Children's Health Protection  and the Office of Research and
Development will lead an Agency effort to reduce exposure of older Americans to environmental
hazards.  Working with stakeholders, the Agency will begin to implement activities identified in
a national agenda on the environmental health of older adults,  being developed in 2004.  The
national  agenda is expected to:   1) prioritize and study environmental health threats to older
persons;  2) examine  the effect  that a rapidly growing  aging  population might  have on our
environment; and 3) encourage older persons to engage in civic activities in their communities to
reduce hazards and protect the environment.

Regional Geographic Initiative

       The Regional Geographic Initiative  (RGI) is  one of the most effective tools that the
Regions have available to address complex and cross-jurisdictional problems using geographic-
based, multi-media, holistic approaches.  The Regions use RGI to achieve the balance between
flexibility hi responding to state and local needs and national priorities.  The problems addressed
by RGI often showcase innovative solutions to risks to human health and ecosystems.  As a
result, RGI enables EPA Regional offices to partner with states, local governments, communities
and the private sector on problems identified via strategic planning processes as high priority in
the Regions, based on national and regional criteria. Many RGI projects are critical components
of larger Agency programs and the Regions use RGI to further such Presidential, Administrator,
and Agency initiatives  as  children's health, watersheds, clean air,  pollution prevention, and
environmental stewardship.
7- U.S. EPA, Office of the Administrator. "Environmental Health Threats to Children", EPA 175-F-96-001, September 1996.
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       Each year, RGI funds a myriad of projects that solve environmental and public health
problems that:

•      address disproportionate levels of environmental and public health risks (i.e. asthma, lead
       levels, threats to air and water quality);
•      support collaboration with communities and many different partners (watershed planning,
       demonstration projects, and air monitoring);
•      focus  on environmental outcomes, rather than activity measures; and,
•      leverage additional funds from states, localities, non-profit, private, and other sources that
       contribute to environmental improvement.

       Working with communities to find cost effective  solutions that work for them, ensuring
involvement of all stakeholders in the process, and leveraging resources from federal, state and
private sectors are all critical components of RGI.  The RGI approach has been very successful
in resolving multi-media environmental and health issues.73.
FY 2005 CHANGE FROM FY 2004
EPM
       (+$2,000,000):  Community Action for a Renewed Environment (CARE) will support the
       development  and implementation  of multi-media community-based  toxics reduction
       projects, similar to those underway in Cleveland, St. Louis and South Phoenix. It will fill
       the current gap in our national programs, which provide a broad level of basic health and
       environmental protection but are not  always  sufficient to  meet the  needs of all
       communities, especially those  which  are  over-burdened by  toxic pollutants.   This
       initiative will reduce those risks through cost-effective, tailored and immediate actions.
       In this initiative grants will be awarded to provide funding for communities to organize
       and assess the risks in their community and to take action to reduce those risks.  The
       initiative  will  support regions  by  providing multi-media risk  reduction  and risk
       assessment tools,  models to assist communities in identifying, prioritizing and reducing
       risks. It will also conduct training and hold conferences, as needed, to educate community
       members and share lessons learned. Finally, the team will collect and  aggregate results
       provided by the specific projects and conduct program evaluations to assess the resulting
       benefits and lessons  learned.  The regions  will work directly with the communities to
       provide needed support and information. This initiative will work in tandem with the
       Clean School Bus Diesel Retrofit Grant Program in Goal  1. Retrofitting school buses
       will allow areas to achieve reductions hi toxics emissions that affect children.

       (+$64,800, +0.5 FTE):  Increased resources  will be used to help manage the Agency's
       Environmental Justice Small Grants program.

       (-$700,000,  -0  FTE):   Resources redirected to the International  Capacity Building
       Program/Project to emphasize significant capacity issues along the U.S.-Mexico border.
73 U.S. EPA, Office of Regional Operations, (202) 564-3100
                                         IV-94

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         There  are additional increases  for payroll,  cost-of-living,  and  enrichment for existing
         FTE.
ANNUAL PERFORMANCE GOALS AND MEASURES


GOAL: HEALTHY COMMUNITIES AND ECOSYSTEMS


OBJECTIVE: COMMUNITY HEALTH


Annual Performance Goals and Measures

U.S. - Mexico Border Water/Wastewater Infrastructure

In 2005        In the US-Mexico Border Region, sustain and restore community health, and preserve the ecological systems that support them

In 2004        Increase the number of residents in the Mexico border area who are protected from health risks, beach pollution and damaged
              ecosystems  from nonexistent and failing water and wastewater treatment infrastructure by providing improved water and
              wastewater service.

In 2003        Increase the number of residents in the Mexico border area who are protected from health risks, beach poEution and damaged
              ecosystems  from nonexistent and failing water and wastewater treatment infrastructure by providing improved water and
              wastewater service.

Performance Measures:                                   FY2003           FY2004          FY2005
                                                      Enacted           Pres. Bud.        Request
People in the Mexico border area protected from health risks                                      1.5 Million        People
because of adequate water and wastewater sanitation systems
funded  through the  Border Environmental  Infrastructure
Fund.

Number of additional people in Mexico border area protected   900,000           990,000                            People
from health risks, because of adequate water & wastewater
sanitation systems funded  through  border environmental
infrastructure funding.


Baseline:       The US-Mexico border region extends more than 3,100 kilometers (2,000 miles) from the Gulf of Mexico to the Pacific Ocean,
              and 62.5 miles on each side of the international border. More than 11.8 million people reside along the border and this figure is
              expected to increase to 19.4 million by 2020. Ninety percent of the population reside  in the 14 impaired, interdependent sister
              cities.  Rapid population growth in urban areas has resulted in unplanned development, greater demand for land and energy,
              increased traffic congestion, increased waste generation, overburdened or unavailable waste treatment and disposal facilities, and
              more frequent chemical emergencies.  Rural areas suffer from exposure to airborne dust, pesticide use, and inadequate water
              supply and treatment facilities.  EPA, other US Federal agencies, and the Government of Mexico have partnered to address these
              environmental problems.

World Trade Organization - Regulatory System

In 2005        Assist trade partner countries in completing environmental reviews

Performance Measures:                                   FY2003           FY2004         FY2005
                                                      Enacted           Pres. Bud.        Request
Number of environmental  reviews  initiated by  FTAA                                     3                Countries
countries  following  the enactment  of  the  2002  Trade
Promotion Act (TPA).


Baseline:       As of the end of FY 2003, two environmental reviews (Chile and Singapore) have been initiated since the enactment of the 2002
              Trade Promotion Act.

Revitalize Properties

In 2005        Leverage jobs by assessing, promoting the cleanup and reuse of brownfields properties.

hi 2004        Leverage jobs through revitalization efforts.

In 2004        Leverage or generate funds through revitalization efforts.

La 2004        Make Brownfields property acres available for reuse or continued use.

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In 2003      Leverage jobs through revitalization efforts.

In 2003      Leverage or generate $0.9 B through revitalization efforts.

Performance Measures:

Number of Brownfields properties assessed.

Number of Brownfields cleanup grants awarded.

Number of properties cleaned up using Brownfields funding.

Estimated number of Brownfield property acres available for
reuse or continued use.

Number of jobs leveraged from Brownfields activities.

Number of Brownfields job training participants trained.

Percentage of Brownfields job training trainees placed.

Amount of cleanup and redevelopment funds leveraged at
Brownfields sites.

Number of  Tribes supported by Brownfields cooperative
agreements.
FY 2003
Enacted
472(qtr3)



1,202 (qtr 3)

62%(qtr3)
$0.3B(qtr3)
FY2004
Pres. Bud.
1,000
25
no target
no target
2,000
200
65%
S0.9B
FY2005
Request
1,000
25
60
no target
5,000
200
65%
SLOB
assessments
grants
properties
acres
jobs
participants
trainees placed
funds
no target
            Tribes
Baseline:     By the end of FY 2002, the Brownfields program had leveraged 19,646 jobs, provided job training to 913 individuals, placed an
           average of 65% of job training participants, and leveraged a total of $6.7 billion.  Data reported for FY 2002 reflect
           accomplishments up to the 3rd quarter of FY 2002.
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure:

•      Number of Brownfields properties assessed.
•      Number of jobs leveraged from Brownfields activities.
•      Number of properties cleaned up using Brownfields funding.
•      Percentage of Brownfields job training trainees placed.
•      Amount of cleanup and redevelopment funds leveraged at Brownfields sites.

Performance Database: The Brownfields Management System (BMS) contains the
performance information identified in the above measures.

Key fields related to performance measures include:

AP 5 - Number of Properties with Assessment Completed with Pilot Funding
AP 11 - Number of Cleanup/Construction Jobs Leveraged
AP 12 - Number of Cleanup Dollars Leveraged
AP 13 - Number of Redevelopment Jobs Leveraged
AP 14 - Number of Redevelopment/Construction Dollars Leveraged
JT 2 - Number of Participants Completing Training
JT 3 - Number of Participants Obtaining Employment
RLF - Number of Properties with cleanup activities completed using Brownfields Cleanup
Revolving Loan Fund funds.

Data Source: Data are extracted from quarterly reports prepared by Cooperative Agreement
Award Recipients
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Methods, Assumptions and Sustainability: Cooperative Agreement Award Recipients submit
reports quarterly on project progress. Data on performance measures are extracted from
quarterly reports by an EPA contractor. Afterwards, data are forwarded to Regional Pilot
managers for review and finalization.

"Number of jobs leveraged from Brownfields activities" is the aggregate of the "Number of
redevelopment jobs  leveraged"  and the "Number of cleanup/construction jobs leveraged."
"Amount of cleanup and redevelopment funds leveraged at Brownfields sites" is the aggregate of
"Number of Cleanup Dollars  Leveraged"  and the "Number of Redevelopment/Construction
Dollars Leveraged."  "Percentage of Brownfields job training trainees  placed" based on the
"Number of Participants Completing  Training" and the "Number of Participants Obtaining
Employment." "Number of properties cleaned up using Brownfields funding" is the aggregate of
"Number of Properties with cleanup activities completed using BCRLF funds" and the number
of properties cleaned up using  cleanup grant funding (to be included in amended database. See
"New and Improved Data or Systems").

QA/QC Procedures:  Data reported by cooperative award agreement recipients are reviewed by
EPA Regional pilot managers for accuracy and to ensure appropriate interpretation of key
measure definitions. Reports are produced monthly with detailed data trends analysis.

Data Quality Reviews: No external reviews.

Data Limitations: All data provided voluntarily.

Error Estimate: NA

New/Improved Data  or  Systems: The Brownfields Management System  (BMS) has been
migrated to an oracle platform  and is currently being modified to include all reporting elements
required in grantee terms and conditions. Key field definitions will be updated.

References: NA

FY 2005 Performance Measure: People in the Mexico border area connected  to potable
water and wastewater collection and treatment systems (cumulative).

Performance Database:   No formal EPA database.  Performance  is tracked  and  reported
quarterly by  Border  Environment Cooperation Commission (BECC)  and North American
Development Bank (NADBank).  Data field  is A population -served by potable water and
wastewater collection and treatment systems.

Data Source: 1) U.S. population figures from the 2000 U.S. Census [Reference A, below]; 2)
Data on U.S. and Mexican populations served by "certified" water/wastewater treatment
improvements from the BECC; 3) Data on projects funded from the NADBank.

Methods, Assumptions and Suitability: Summation of population from BECC and NADBank.
U.S. Census data are assumed to be correct and suitable.
                                       IV-97

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QA/QC Procedures: EPA Headquarters is responsible for evaluation of reports from BECC and
NADBank on drinking water and wastewater sanitation projects. Regional representatives attend
meetings of the certifying and financing entities for border projects (BECC and NADBank) and
conduct  site  visits  of projects underway to ensure the accuracy of information reported.
[Reference B]

Data Quality Review:  Regional representatives attend meetings of the certifying and financing
entities for border projects (BECC and NADBank) and conduct site visits of projects underway
to ensure the accuracy of information reported.

Data Limitations: None

Error Estimate: Same as census data.

New/Improved Data or Systems:  None.

References:
A. U.S. Department of Commerce, Bureau of the Census, (Washington, DC: U.S. Department of
Commerce, 1990). Institute National de Estadistica, Geografia y Informatica, Aguascalientes,
Total Population by State (1990).

B.  Border  Environment  Cooperation  Commission (BECC), Cd  Juarez, Chih, and  North
American Development Bank (NADBank), (San Antonio, TX, 2002).

FY 2005 External Performance Measure: Assist trade  partner countries in completing
environmental reviews.

Performance Database: None- Manual Collection

Data Source:  Project / Trade Agreement Specific

QA/QC  Procedures:  Verification does not involve any pollutant database analysis, but will
require objective assessment of: (1) tasks completed, (2) compliance with new regulation, and
(3) progress toward project goals and objectives.

Validating measurements under international programs presents several challenges. Technical
assistance projects, for instance, typically target developing countries, which often do not have
sound data collection and analysis systems in place. Non-technical projects, such as assistance in
regulatory reform, frequently  must rely on more subjective measures of change, such  as the
opinions of  project staff or  reviews  by  third-party organizations, including other U.S.
government organizations, hi judging the long-term efficacy of the assistance provided.

EPA works with its trading partners on capacity building projects, which establish the framework
and tools to ensure  increased trade does not degrade the environment and harm human health.
Projects will help prevent pollution at the source, and will be tailored to partner-country needs
and be built on past US assistance. Tracking development and implementation of these projects
presents few challenges because EPA project staff maintains close contact with their counterparts
and any changes become part of a public record. Assessing the effectiveness of these projects or

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the inclusion of environmental provisions in trade agreements is more subjective.  Aside from
feedback from Agency project staff, EPA relies, in part, on feedback from its trading partners in
the target countries and regions and from non-governmental organizations  (NGOs) and other
third parties.  Because EPA works to establish long-term relationships with its trading partners,
the Agency is often able to assess environmental improvements in these countries and regions for
a number of years following implementation of the trade agreement.
EFFICIENCY MEASURES/MEAUSREMENT DEVELOPMENT PLANS

       The Agency will work to develop and support the measurement of surface water quality
along the Mexican Border. In the 2003  Strategic  Plan, EPA commits  by 2012 to assessing
significant shared and transboundary surface waters  and to achieving a majority of water quality
standards currently being exceeded in those waters. In FY 2005, a work group will be established
with Mexico and a work plan developed to measure annual progress toward this target.  The
workplan will  cover both the achievement of the target and its measurement.  As a binational
plan, success will depend equally on U.S. and Mexican government resources and actions. In
addition, the Mexican Border program will be proposing an efficiency measure as part of the FY
06 PART process.
COORDINATION WITH OTHER AGENCIES

       In  November  2002, the EPA Administrator  announced  the Brownfields Federal
Partnership Action Agenda.  This  involves 23  Federal agencies contributing  resources and
technical assistance to Brownfields redevelopment. Federal resources include:  redevelopment
funds from the Department of Housing and Urban Development and the Economic Development
Agency; planning funds from the Economic Development Agency and job training efforts from
the Department of Labor and the National Institute of Environmental Health Sciences.

       EPA and  these other Federal  agencies  will  continue  to provide active  support for
Brownfields activities across the country in FY 2005.   To  augment the success of the
Brownfields Federal Partnership and its efforts to clean up and redevelop Brownfields properties,
the Agency and its Federal partners continue to revise and  enter into new Memoranda-of-
Understanding.

       The Brownfields program also relies  on partnership building with local government,
state, and non-government groups to leverage Federal funding  with private sector funding. As
part  of the  Brownfields initiative,  EPA will  continue  to  provide outreach,  curriculum
development, job  training, and technical assistance to  community residents through cooperative
agreements to community-based organizations, community colleges, universities, and private
sector non-profit groups.  The Agency also works with cities, states, federally recognized Indian
Tribes, community representatives, and other stakeholders to implement the many commitments.
Successful Brownfields redevelopment is proof that economic .development and environmental
protection go hand hi hand.
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       EPA's environmental mandate and expertise make it uniquely qualified to represent the
nation's environmental interests abroad. While the Department of State (DOS) is responsible for
the conduct of overall U.S. foreign policy, implementation of particular programs, projects, and
agreements is  often the responsibility of other agencies with specific technical expertise and
resources. Relations between EPA and DOS cut across several  offices and/or bureaus in both
organizations.

       EPA works  extensively  with the  Office of  the  U.S. Trade  Representative (USTR),
particularly its Office of Environmental and Natural  Resources, to ensure that U.S. trade and
environmental polices are mutually supportive. For example, through the Agency's participation
in the  negotiation of both the North American Free Trade Agreement and the World Trade
Organization Agreements, EPA  has worked with USTR to ensure that U.S. obligations under
international trade agreements do not hamper the ability of Federal and state governments to
maintain high levels of domestic  environmental protection. The two agencies also work together
to ensure that  new obligations are consistent  with U.S. law and EPA's rules,  regulations, and
programs. In addition to the work with USTR, EPA also cooperates with many other Federal
agencies in the development and execution of US trade policy, and in performing environmental
reviews of proposed trade agreements. Moreover, EPA works closely with the Department of
State  and USAID in developing and implementing environmental  cooperation  agreements
associated with each new FT A, and the associated environmental capacity building projects.

       EPA and the Department of Commerce work together closely on a  range  of different
issues, including many science  and  technology issues.  For example, EPA  is responsible for
implementing  activities under the Export
Enhancement  Act  of  1992.    The  Act
mandated  EPA  participation   on  the
Environmental Trade Working  Group of
the   Trade   Promotion   Coordinating
Committee, an interagency working group
chaired by the Secretary of Commerce to
coordinate   the  government's  overall
environmental trade promotion activities.
Cumulative Population Benefited by
         BEIF Funding
             5.6
       1999   2000   2001

          Population in Millions
       The Governments of Mexico and
the United States agreed, in November 1993, to assist communities on both sides of the border in
coordinating and carrying out environmental infrastructure projects.  The agreement between
Mexico and the United States furthers the goals of the North American Free Trade Agreement
and the North American Agreement  on Environmental  Cooperation. To  this purpose, the
governments established two international institutions, the Border Environmental Cooperation
Commission (BECC) and the North American Development Bank (NADBank), which manages
the Border Environmental Infrastructure Fund (BEIF), to support the financing and construction
of much need environmental infrastructure.

       The BECC, with headquarters  in  Ciudad Juarez, Chihuahua,. Mexico, assists  local
communities and other sponsors in developing and implementing environmental infrastructure
projects.   As  of August 31, 2003, EPA has provided $38.7  million to the  BECC  project
development fund.  The BECC also certifies projects as  eligible for NADBank financing. The
NADBank, with headquarters in San Antonio, Texas, is capitalized in equal shares by the United
                                        FV-100

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States and Mexico.  NADBank provides new financing to supplement existing sources of funds
and foster the expanded participation of private capital.   As of August 31, 2003, EPA has
provided $437.6 million to NADBank through the BEIF which then issues border grants for
individual projects on the agency's behalf.

      A significant number of residents along the U.S.-Mexico border area are without basic
services  such  as potable  water and wastewater treatment  and the  problem has  become
progressively worse in the last few  decades. Over the last several years, EPA has continued to
work with the U.S. and Mexican Sections of the International Boundary and Water Commission
to further efforts to improve water and wastewater services to communities within 100 km of the
U.S.-Mexico border. Recently, EPA has been involved hi efforts to plan, design and construct
more than 10 water and wastewater facilities in the border region.

      The Administrator co-chairs, along with the Secretary of the Department of Health and
Human  Services, the President's Task Force on  Environmental Health and Safety Risks to
Children.   About 15  Federal cabinet  departments,  agencies and White House  offices  are
members of the Task Force.
STATUTORY AUTHORITIES

Annual Appropriations Act
Clean Air Act
Clean Water Act
Comprehensive  Environmental Response, Compensation, and Liability Act of 1980 (CERCLA)
   as amended  by the  Small Business Liability Relief and  Brownfields Revitalization Act
   (SBLRBRA) (Public Law 107-118).
Computer Security Act
Congressional Review Act
Congressional Review Act
Contract law
CPRKAofl986
Emergency Planning and Community Right-to-Know Act (EPCRA) section 313 (42 U.S.C.
   110001-11050)
Emergency Planning and Community Right-to-Know Act (EPCRA) section 313 (42 U.S.C.
   110001-11050)
Enterprise for the Americas Initiative Act (7 U.S.C. 5404)
Environmental Research, Development, and Demonstration Act (ERDDA) of 1981
EPA's Assistance Regulations
EPA's Environmental Statues
Executive Order 12866
Executive Order  12915 - Federal Implementation  of the North American Agreement  on
   Environmental Cooperation
Executive Order 12916  - Implementation of the Border Environment Cooperation Commission
   and the North American Development Bank Plain Language Executive Order
Executive Order  13148,  "Greening  the Government  through Leadership in Environmental
   Management"
Federal Acquisition Regulations

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Federal Advisory Committee Act (FACA) (5 U.S.C. App.)
Federal Food, Drug and Cosmetic Act (FFDCA)
Federal Grant and Cooperative Agreement Act
Federal Insecticide, Fungicide, and Rodenticide Act
Federal Managers Financial Integrity Act (FMFIA)
Food Quality Protection Act (FQPA)
Freedom of Information Act (FOIA) (5 U.S.C. 552)
Government Management Reform Act (1990)
Government Paperwork Elimination Act (GPEA)
National Environmental Education Act
National Environmental Policy Act
North American Agreement on Environmental Cooperation
North American Agreement on Environmental Cooperation
North American Free Trade Agreement
Paperwork Reduction Act Amendment of 1995 (44 U.S.C. 3501-3520)
Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)
PPA (42 U.S.C. 13101-13109)
Privacy Act
Regulatory Flexibility Act
Resource Conservation and Recovery Act (RCRA) 8001.
Safe Drinking Water Act
Small Business Regulatory Enforcement Fairness Act
Toxic Substance Control Act section 14 (TSCA) (15 U.S.C. 2601-2692)
Toxic Substances Control Act
Trade Act of 2002 (TPA)
Unfunded Mandates Reform Act
World Trade Organization Agreements
                                      IV-102

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                         Environmental Protection Agency

          FY 2005 Annual Performance Plan and Congressional Justification

                       Healthy Communities and Ecosystems

OBJECTIVE: Ecosystems

      Protect, sustain, and restore the health of natural habitats and ecosystems.

                                Resource Summary
                               (Dollars in Thousands)

Ecosystems
Environmental Program & Management
Buildings & Facilities
State & Tribal Assistance Grants
Inspector General
Total Workyears
FY2003
Actuals
$171,169.4
$142,880.5
$325.5
$27,146.2
$817.2
546.0
FY2004
Pres. Bud.
$160,698.1
$119,336.0
$386.5
$40,000.0
$975.6
384.8
FY 2005
Pres. Bud.
$200,844.5
$154,173.6
$422.6
$45,000.0
$1248.4
390.8
FY 2005 Req. v.
FY 2004 Pres Bud
$40,146.5
$34,837.6
$36.1
$5,000.0
$272.8
5.9
                                 Program Project
                               (Dollars in Thousands)

Congressionally Mandated Projects
Geographic Program: Other
Regional Geographic Initiatives
Categorical Grant: Wetlands Program
Development
Categorical Grant: Targeted Watersheds
Geographic Program: Chesapeake Bay
Geographic Program: Great Lakes
Geographic Program: Gulf of Mexico
Geographic Program: Lake Champlain
Geographic Program: Long Island Sound
Great Lakes Legacy Act
National Estuary Program / Coastal Waterways
Wetlands
Administrative Projects
TOTAL
FY 2003
Actuals
$16,157.3
$5,731.7
$6,855.9
$14,206.2
$12,940.0
$21,755.2
$16,810.7
$4,383.0
$2,666.6
$2,225.5
$0.0
$22,712.0
$17,129.2
$27,596.1
$171,169.4
FY2004
Pres. Bud.
$0.0
$4,762.5
$0.0
$20,000.0
$20,000.0
$20,777.7
$18,104.2
$4,431.7
$954.8
$477.4
$15,000.0
$19,094.2
$19,299.9
$17,795.7
$160,698.1
FY2005
Pres. Bud.
$0.0
$4,789.7
$0.0
$20,000.0
$25,000.0
$20,816.6
$21,194.8
$4,477.8
$954.8
$477.4
$45,000.0
$19,229.3
$19,752.8
$19,151.3
$200,844.5
FY 2005 Req. v.
FY 2004 Pres Bud
$0.0
$27.2
$0.0
$0.0
$5,000.0
$38.9
$3,090.6
$46.1
$0.0
$0.0
$30,000.0
$135.1
$452.9
$1,355.7
$40,146.5
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FY 2005 REQUEST

Results to be Achieved under this Objective

       EPA is  working to  protect, sustain, and restore the  health  of natural  habitats and
ecosystems by  identifying and  evaluating  problem  areas, developing  tools, and  improving
community capacity to address  problems.   Special emphasis on these varied placed-based
ecosystem protection efforts provides the opportunity not only to have necessary heightened
Federal involvement in critical watersheds, but also  to develop and implement water quality
control practices and other ecosystem management tools whose successes can be transferred to
other  place-based  efforts nationwide.   Actions in these  targeted  areas  will support  the
achievement of goals to  improve water quality, including  improvements to overall  aquatic
system health in coastal waters.

National Estuary Program

       During  the  past decade,  the U.S.  has preserved,  restored and/or created hundreds of
thousands  of acres of habitat nationwide as part  of the National Estuary Program (NEP). The
program focuses not just  on improving water quality  hi an estuary, but on maintaining the
integrity of the whole system -- its  chemical, physical, and biological properties, as well as its
economic, recreational, and aesthetic values.  Some of the mechanisms used to protect habitats
include land acquisition, conservation easements, and deed restrictions.

       Estuaries are among the most productive ecosystems on earth, providing numerous
ecological, economic, cultural, and  aesthetic benefits and services.  They are also among the
most threatened ecosystems, largely as a result of rapidly increasing growth and development
along the Nation's coastlines.  About half the U.S. population now lives in coastal areas, and
coastal counties are growing three times faster than counties elsewhere in the nation. Overuse of
resources and poor land use practices have resulted in beach and shellfish bed closings, harmful
algal blooms, unproductive fisheries, loss of habitat and wildlife, fish kills, and  a host of other
human health and natural resource problems.

       EPA plans to implement key activities74 under its flagship coastal watershed protection
effort, the NEP, to help address these growing threats to the Nation's estuarine resources.  The
NEP, which provides inclusive, community-based planning and action at  the watershed level, is
an important initiative in conserving our estuarine resources.

       EPA will facilitate the ecosystem-scale protection and restoration of natural areas by
supporting continuing efforts of all 28  NEP  estuaries  to  implement then1 Comprehensive
Conservation and Management Plans (CCMPs) to protect and restore estuarine resources.  In
addition, the Agency will provide more focused support for several priority needs identified by
EPA and the NEP, including problems of invasive species, air deposition of pollutants  such as
74 The means and strategies outlined here for achieving Sub-objective 4.3.1 must be viewed in tandem with the means and
strategies outlined under Goal 2, Objective 2, Sub-objective 2.2.2, Improve Ocean and Coastal Waters.® Sub-objective 2.2
contains strategic targets for EPA's vessel discharge, dredged material management, ocean disposal programs, and other ocean
and coastal programs, which are integral to the Agency's efforts to facilitating the ecosystem scale protection and restoration of
natural areas.


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mercury and nitrogen, and nutrient over-enrichment. EPA will support estuaries in developing
aquatic nuisance species monitoring protocols and rapid response plans, improving mercury
deposition monitoring, and developing and implementing nutrient management strategies.

       The  health of the Nation's estuarine ecosystems also depends on the maintenance of
high-quality habitat.  Diminished and degraded habitats  are less  able to support healthy
populations of wildlife and marine organisms and perform the economic, environmental, and
aesthetic functions on which coastal populations depend for their livelihood. EPA will facilitate
ecosystem-scale protection and restoration by supporting estuary efforts to achieve its habitat
restoration and protection goal of 250,000 additional acres by 2008.  In FY 2005, EPA and its
partners will protect or restore an additional 25,000 acres of habitat.

Wetlands and Wetland Program Development Grants

       Over the years, the United States has lost more than 115 million acres of wetlands to
development, agriculture, and other purposes.75 Today, the Nation still loses an estimated 58,000
acres  of wetlands  every  year,  while  other wetlands are  being  degraded  by  excessive
sedimentation,  nutrient  over-enrichment,  pesticides,   invasive  species,  habitat   loss  and
fragmentation.76

       The  Administration has set the stage for a  growing commitment to a regulatory program
aimed at no net loss of wetlands and to public and private,  regulatory and non-regulatory
initiatives and  partnerships to improve the overall condition of the  Nation's  wetlands.   In
December 2003, the Administrator of EPA and the Assistant Secretary of the Army reiterated the
Administration's commitment to the goal of "no net loss"  of wetlands, reaffirming and bolstering
protections for wetlands.

       Because  the  Clean  Water   Act  does  not  protect  all  wetlands,  achieving the
Administration's commitment necessitates stronger state, Tribal and  local programs to protect
the most vulnerable wetlands.  In FY04 states are applying to be certified as eligible for grants
based upon comprehensive programs that meet environmental standards. Grant funds will help
states and tribes  to  protect wetlands that  were once protected by federal agencies  but are no
longer because of the Supreme Court's 2001 Decision hi Solid Waste Association of Northern
Cook County.

       EPA will work with its state and Tribal partners to develop and implement broad-based
and integrated monitoring and assessment  programs  that improve data for decision-making
within the watersheds, address significant stressors, and report on condition.  EPA will work to
achieve  national gains  hi wetlands  acreage by implementing an  innovative partner-based
wetlands  and stream corridor restoration program.   The Agency,  working with the Corps of
Engineers, and other partners, will continue to implement the Administration's Mitigation Action
Plan  and to build  our  capacity  to measure wetland  function and  condition, in addition to
measuring wetland  acreage.   EPA's  support will help avoid or minimize wetland losses, and
75 Dahl, T.E. 1990. Wetlands Losses in the United States, 1780s to 1980s. Washington, DC: U.S. Department of the Interior, U.S.
Fish and Wildlife Service. Available online at:http://www.npwrc.usgs.gov/resource/othrdata/wetloss/wetloss.htm.
76 Dahl, T.E. 1990. Status and Trends of Wetlands in the Conterminous United States, 1986 to 1997. Washington, DC: U.S.
Department of the Interior, U.S. Fish and Wildlife Service. Available online at:
http://wetlands.fws.gov/bha/SandT/SandTReport.html: Report to Congress on the Status and Trends of Wetlands in the
Conterminous United States, 1986 to 1997.

                                          rv-105

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provide for full compensation for unavoidable losses of wetland functions.  Wetlands and stream
corridor restoration will remain a focus for regaining lost aquatic resources.

Great Lakes

       The  Great Lakes are the largest system of surface freshwater on earth, containing 20
percent of the world's surface freshwater and accounting for more than 90 percent of the surface
freshwater in the United States. The watershed includes two nations, eight American states, a
Canadian province,  more than  40 Tribes and is home to more than one-tenth of the U.S.
population.  To further restore the chemical, physical, and biological integrity of the Great Lakes
ecosystem,  EPA is  implementing Clean Water Act core water protection programs and has
launched the Great Lakes Strategy 2002: A Plan for the New Millennium on behalf of the U.S.
Policy Committee.77 The Strategy presents a basin-wide vision for Great Lakes protection and
restoration,  identifying the major environmental issues in the Great Lakes; establishing common
goals for Federal, state, and Tribal agencies; and helping to fulfill U.S. responsibilities under the
U.S.-Canada Great Lakes Water Quality Agreement.  Objectives include the clean up and de-
listing of at least 10 Areas of Concern by 2010, a 25 percent reduction in PCB concentrations in
lake trout and walleye (see graph below), and the restoration or enhancement of 100,000 acres of
wetlands within the Great Lakes basin. The Strategy also sets goals for the clean up of all Areas
of Concern by 2025, and for 90 percent of monitored Great Lakes beaches to be open 95 percent
of the season.

                        Poly-chlorinated biphenyis (PCBs)
                        Trends  in Great  Lakes fish  tissue*
               c
               ©
               a
               w
               t
               a
               3
               m
               m
               o
               a.
              Source: Great Lakes National Program Office annual monitoring program, Great Lakes Environmental Database

       The Great Lakes Strategy incorporates the Great Lakes Binational. Toxics Strategy,  a
groundbreaking international toxics reduction effort that targets a common set of persistent, toxic
77 U.S. Policy Committee for the Great Lakes. April 2002. A Strategic Plan for the Great Lakes Ecosystem. Washington, DC.
Available online at http://www.epa.gov/glnpo/gls/glsvideotest.html.
                                          rv-106

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substances for reduction and elimination (http://www.epa.gov/gmpo^s/documents.html).78  The
Toxics  Strategy applies voluntary and regulatory tools focused on pollution prevention to a
targeted set of substances  including mercury,  PCBs, dioxins/furans,  and certain canceled
pesticides.   The  Strategy  outlines  activities for states,  industry, Tribes, non-governmental
organizations, and other stakeholders.

       GLNPO will  lead  development  of  management recommendations to  address the
inexplicably low dissolved-oxygen levels in Lake Erie, which have resulted in an increasing
"dead zone."  Despite U.S. and Canadian success in achieving total phosphorus load reductions,
phosphorus in the central basin of Lake  Erie has increased since the early 1990's to levels
substantially in excess of the Great Lakes Water Quality Agreement Objective of lOug-P/1 (see
Figure 1).  During 2004, GLNPO will cooperate with Environment Canada on several targeted
projects in Lake Erie.  For 2005, research will center on data necessary to update mathematical
models of Lake Erie's response to nutrients, and the updating of the models for management use.
       20
         Figure 1:  Central Lake Erie Total Phosphorus
                           Spring 1983-2003
    0)
       10
    a.
    0
    o
   JC
   Q.
                                                        "WQ Objective
 y = -0.733x +14.19
-p-
-------
partners will have remediated a cumulative total of 2.9 million cubic yards of contaminated
sediments since tracking began in 1997.  In the second year of this program, EPA will support
six projects for remediation which would result in cleanup of a  quarter million cubic yards of
contaminated sediments.

Chesapeake Bay

       EPA's work in the Chesapeake Bay is based on a unique  regional partnership formed to
direct and conduct restoration of the Chesapeake Bay. Partners include Maryland, Virginia and
Pennsylvania; the District of Columbia; the  Chesapeake Bay Commission, a tri-state legislative
body; EPA, which represents the Federal government; and participating citizen advisory groups.
A comprehensive and far-reaching agreement will guide their restoration and protection efforts
through 2010.  That agreement,  Chesapeake 2000, focuses on improving water quality as the
most critical element in the overall protection and restoration of the Bay and its tributaries.

       One of the key measures of success in achieving  improved Bay water quality will be the
restoration of submerged aquatic vegetation (SAV). SAV is one of the most important biological
communities in the Bay,  producing oxygen, nourishing a variety of animals, providing shelter
and nursery  areas for fish and shellfish, reducing wave action  and shoreline erosion, absorbing
nutrients such as phosphorus and nitrogen, and trapping sediments. While recent improvements
in water quality have contributed to a resurgence in SAV (from a  low of 38,000 acres in 1984 to
more than 89,000 acres today), more improvements are needed.  As a measure of unproved water
quality in the Bay, in FY 2005, there will be 91,000 acres of SAV.
                             Acres of Bay Grasses
   180 -

"£• 160 -

CD 140 -
o
g 120 -

^x 100 -
CD
 80 -
w
1 60 H
o
3- 4M
CO
   20 -

    0
                  Restoration Goal (185,000 acres by 2010)
       *Note - Hatched area of bar includes estimated additional acreage. No sinvey in 1988.
       Source: Chesapeake Bay Program.
GOAL:  185,000 acres by
2010.

STATUS:  Total acreage in
2002 is estimated to be
89,658.  The increases
seen in 2001 and 2002
reflect a strong recovery
of grasses in portions of
the middle Bay.
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       To  achieve improved  water quality  and restore  submerged  aquatic  vegetation,  Bay
partners have committed to reducing nutrient and sediment pollution loads sufficiently to remove
the Bay and the tidal portions of its tributaries from the list of unpaired waters.  Key elements of
state  strategies  to achieve these reductions include  implementing  advanced  treatment  of
wastewater to reduce nutrient  discharges, a range of management practices to reduce nutrients
and sediments from farms, and the restoration and protection of riparian forests that serve as a
buffer against sediment and nutrient pollution that enters waterways from the land.

       EPA has  identified a  number of actions that will contribute to achievement of the
program goals.  For example, EPA will work with the Bay Program partners to implement a
SAV strategy and water quality criteria for protecting SAV; collaborate with the U.S. Forest
Service to ensure effective strategies to  conserve forest  buffers; and ensure that states are
implementing existing tributary strategies and are on schedule to implement new water quality
standards/allocations  through  e.g.,  installation of biological nutrient removal  at  wastewater
treatment facilities and effective storm water and CAFO permits.

Gulf of Mexico

       EPA's efforts in the Gulf of Mexico directly support a broad multi-organizational  Gulf
states-led partnership comprised of regional; business and industry; agriculture; State and local
government; citizens; environmental and fishery interests;  and, numerous Federal departments
and  agencies.  EPA provides the underlying facilitation  and  technical support necessary to
empower and exploit the partnership's capacity to protect and restore the health and productivity
of this  complex  ecosystem in ways  consistent  with the economic well-being  of  the region.
Through  this  collaborative   framework,  the  Gulf  States  strategically  identify the  key
environmental issues and work at the  regional, state, and local level to define,  recommend, and
voluntarily implement the supporting solutions.
                                          25000
       Gulf of  Mexico issues  can be  broadly
categorized as  affecting  water  quality,
public health,  and habitat loss.  Actions
identified by the Gulf of Mexico Program
and its partners support efforts to restore
unpaired waterbodies  to  achieve  levels
that  meet  state  water quality standards
and     strengthen     Clean    Water
implementation; to  increase  acres  of coastal
wetland  habitats;  to  reduce  contamination of
reduce nutrient  loadings  to  watersheds;  and, to
                                                Area! Extent of Hypoxic Zone 1985 - 2003
                                         Act
                                                local  {sourco.w.Ra&a/a/s.tuMcow;  beaches;    to
                                                initiate and lead efforts to address multi-
jurisdictional problems such as the hypoxic zone in the Gulf of Mexico. A continued focus on
protecting and restoring aquatic life and recreational uses ensures that local communities directly
benefit from an improved quality of life and that the Gulf as a whole ultimately benefits from the
culmination of  community watershed restoration efforts.   These  local efforts substantially
increase regional  understanding of the Gulf as an ecological system and lead to improved
capabilities to assess, evaluate, manage, and communicate progress.
                                         IV-109

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Other Geographic Areas/Targeted Watershed Grants

       EPA will continue efforts to provide targeted support to special ecosystems, including
those with statutorily authorized protection programs. Efforts in Lake Champlain will continue
to support the successful interstate, interagency, and international partnership undertaking the
implementation of "Opportunities for Action," a plan designed to address various threats to the
Lake's water quality, including  phosphorus loadings, invasive species and toxic substances.
EPA will also provide targeted support to the Long Island Sound, continuing implementation of
the Sound's Comprehensive Conservation and Management Plan (CCMP), approved in  1994.
Activities will focus on six areas identified in the plan as requiring special attention: hypoxia,
toxic contamination, pathogens, floatable debris, the impact of habitat degradation on the health
of living resources, and land use and development.

       Our Targeted Watershed Grants program will enter its third year, supporting competitive
grants to watershed stakeholders ready to undertake immediate action to improve water quality
and to improve watershed protection measures with tools, training and technical assistance. Of
these funds, $10 million will be set-aside for a new regional pilot program.  For 2005, the pilot
will take place in the Chesapeake Bay  watershed, and will focus  on helping publicly-owned
treatment works  (POTWs) reduce  nutrient discharges to  the Bay through  nonpoint source
projects. In addition, the Targeted Watersheds program will  give special emphasis to projects
that promote water quality trading  opportunities to more  efficiently achieve water quality
benefits through market-based approaches.  Projects will demonstrate the effectiveness of these
approaches, with a particular emphasis on trades involving both point and nonpoint sources of
pollution.
FY 2005 CHANGE FROM FY 2004

EPM

•      +$30,000,000:  Will support  contaminated sediment remediation pursuant to the Great
       Lakes  Legacy  Act,  including  additional  contaminated  sediment  cleanups,  site
       assessments, alternatives analyses, and remedial design at Great Lakes Areas of Concern.

•      +$3,000,000:  Will  support  Lakewide Management Plan and Remedial Action Plan
       implementation by re-building State and local capacity for Great Lakes restoration and
       initiation of projects to restore impaired beneficial uses (e.g., addressing beach closings,
       tainted fish and improving habitat) at Great Lakes Areas of Concern.

•      There are increases for payroll, cost of living and enrichment for existing FTE.

STAG

•      +$5,000,000: For Targeted Watershed Grants (supplemented by a redirection within the
       base of an additional $5,000,000) to help municipalities meet requirements  for nutrient
       loading reductions.
                                         FV-110

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ANNUAL PERFORMANCE GOALS AND MEASURES


GOAL: HEALTHY COMMUNITIES AND ECOSYSTEMS


OBJECTIVE: ECOSYSTEMS

Protecting and Enhancing Estuaries

In 2005       Working with NEP partners, protect or restore an additional 25,000 acres of habitat within the study areas for the 28 estuaries
              that are part of the National Estuary Program (NEP).

In 2004       Restore and protect estuaries through the implementation of Comprehensive Conservation and Management Plans (CCMPs).

In 2003       Restored and protected estuaries through the implementation of Comprehensive Conservation and Management Plans (CCMPs).

Performance Measures:                                    FY2003          FY2004          FY2005
                                                        Actuals           Pres. Bud.         Pres. Bud.
Acres of habitat restored and protected nationwide as part of   118,171           25,000            25,000            Acres
the National Estuary Program, (incremental)


Baseline:      As of January 2000, there were over 600,000 acres of habitat preserved, restored, and/or created.

Gulf of Mexico

In 2005       Prevent water pollution and protect aquatic species in order to improve the health of the Gulf of Mexico.

In 2004       Assist the Gulf States in implementing watershed restoration actions in 14 priority impaired coastal river and estuary segments.

In 2003       Assisted  the Gulf  States  in  implementing watershed restoration actions  in 14 priority unpaired coastal river and  estuary
              segments.

Performance Measures:                                    FY2003          FY2004          FY2005
                                                        Actuals           Pres. Bud.         Pres. Bud.
Impaired  Gulf  coastal  river  and  estuary  segments   95               71/5yrrollavg                       Segments
implementing watershed restoration  actions (incremental).

Reduce releases of nutrients throughout the Mississippi River                                       Less       than   KM2
Basin that affect the size of the  hypoxic zone in the Gulf of                                      14,128
Mexico, as measured by the five year running average


Baseline:      There are 95 coastal watersheds at the 8-digit hydrologic unit code (HUC) scale on the Gulf coast. The Gulf of Mexico Program
              has identified 12 priority coastal areas for assistance. These 12 areas include 30 of the 95 coastal watersheds.  Within the 30
              priority watersheds, the Gulf States have identified 354 segments that are impaired and not meeting full designated uses under
              the States' water quality standards.  The 1996-2000 running average size = 14,128 km2.

Wetland and River Corridor Projects

In 2005       Working with partners, achieve a no net loss of wetlands.


Performance Measures:                                    FY2003          FY2004          FY2005
                                                        Actuals           Pres. Bud.         Pres. Bud.
Annually, in partnership with the  Corps  of Engineers and                                      No Net Loss       Acres
States, achieve no net  loss of wetlands in the Clean Water
Act section 404 regulatory program

Working with partners, achieve no net loss  of wetland acres                                        No Net Loss       Acres


Baseline:      Annual net loss of an estimated 58,500 acres.   In partnership with the Corps of Engineers, a baseline and initial reporting will
              begin in FY 2004 on net loss of wetlands in the CWA Section 404 regulatory programs.


Great Lakes Assessment and Implementation Actions

In 2005       Prevent water pollution and protect aquatic systems so that overall ecosystem health of the Great Lakes is improved by at least 1
              point.

In 2004       Great Lakes ecosystem components will improve, including progress on fish contaminants, beach closures, air toxics, and
              trophic status.


                                                          rv-iii

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In 2003       End of year data will be available in 2004 to verify that Great Lakes ecosystem components have improved, including progress
             on fish contaminants, beach closures, air toxics, and trophic status.
Performance Measures:

Long-term concentration trends of toxics (PCBs) in Great
Lakes top predator fish.

Long-term concentration trends of toxic chemicals in the air.

Total phosphorus concentrations (long-term) in the Lake Erie
Central Basin.

Average  concentrations of PCBs in whole lake trout and
walleye samples will decline.

Average  concentrations of toxic chemicals in the air in the
Great Lakes basin will decline

Restore and delist Areas of Concern (AOCs) within the Great
Lakes basin

Cubic yards  (in millions)  of  contaminated  sediment
remediated in the Great Lakes (cumulative from 1997).
FY2003
Actuals
FY2004
Pres. Bud.
Data Lag


Data Lag

18.4
FY 2005
Pres. Bud.
       5%


7%

10


5%


5%


3


2.9
                                                Annual decrease


                                                Annual decrease

                                                Ug/1


                                                Annual Decrease


                                                Annual Decrease


                                                AOC


                                                Cubic Yards/M
Baseline:      In 2003, Great Lakes rating of 20 on a 40 point scale where the rating uses select Great Lakes State of the Lakes Ecosystem
             indicators based on a 1 to 5 rating system for each indicator, where 1 is poor and 5 is good. The trend (starting with 1972 data)
             for toxics in Great Lakes top predator fish is expected to be less than 2 parts per million (the FDA action level) but far above the
             Great Lakes Initiative target or levels at which fish advisories can be removed. The trend (starting with 1992 data) for PCB
             concentrations in the air is expected to range from 50 to 250 picograms per cubic meter. In 2002, no Areas of Concern had been
             delisted. 2.1 million yards of remediated sediments are the cumulative number of yards from 1997 - 2001.
Chesapeake Bay Habitat

In 2005       Prevent water pollution and protect aquatic systems so that overall aquatic system health of the Chesapeake Bay is improved
             enough so that there are 91,000 acres of submerged aquatic vegetation, (cumulative)

In 2005       Reduce nitrogen loads by 74 million pounds per year; phosphorus loads by 8.7 million pounds per year, and sediment loads by
             1.06 million tons per year from entering the Chesapeake Bay, from 1985 levels

In 2004       Improve habitat hi the Chesapeake Bay.

In 2003       Improved habitat in the Chesapeake Bay.
Performance Measures:

Reduction, from 1985 levels, of nitrogen (M/lbs), phosphorus
(M/lbs), and sediment loads (tons) entering Chesapeake Bay.
(cumulative)

Acres of submerged aquatic vegetation (SAV) present in the
Chesapeake Bay. (cumulative)
FY 2003
Actuals
89,659
FY2004
Pres. Bud.
90,000
FY 2005
Pres. Bud.
74/8.7/1.06
91,000
                                                 Lbs/Lbs/Tons
                                                 Acres
Baseline:      In 1984, there were 37,000 acres of submerged aquatic vegetation in the Chesapeake Bay. hi 2002, baseline for nitrogen loads
             was 51 million pounds per year; phosphorus loads was 8.0 million pounds per year; and sediment loads was 0.8 million tons per
             year.


VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY  2005 Performance Measure:   Acres  of habitat restored and  protected  nationwide  as
part of the National Estuary Program (NEP).

Performance  Database:   The Office  of Wetlands  Oceans  and  Watersheds has developed a
standardized  format  for  data  reporting and  compilation,   defining  habitat  protection  and
restoration activities and specifying habitat  categories. We have also  designed a web page that,
hi an educational fashion with graphics and  images, highlights habitat loss/alteration, as well as,
                                                     IV-112

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the number of habitat acres protected and restored by habitat type,  based on specific NEP
reports.  This enables EPA to provide a visual means of communicating NEP performance and
habitat protection and restoration progress to a wide range of stakeholders and decision-makers.

Data Source: NEP documents such as annual work plans (which contain achievements made hi
the previous year)  and annual progress reports  are used, along with other implementation
tracking materials, to document the number of acres of habitat restored and protected.  EPA then
aggregates the data provided by each NEP to arrive at a national total for the entire Program.
EPA is confident that the data presented are as accurate as possible, based on review and
inspection by each NEP prior to reporting to EPA.  In addition, EPA conducts regular reviews of
NEP implementation to help ensure that information provided in these documents is generally
accurate, and progress reported is in fact being achieved.

Methods, Assumptions and Suitability: Measuring the number of acres of habitat restored and
protected may not directly correlate to improvements in the health of the habitat reported, or of
the estuary overall, but it is a suitable measure of on-the-ground progress.  We recognize that
habitat acreage does not necessarily correspond one-to-one with habitat quality, nor does habitat
(quantity or quality) represent the only indicator of ecosystem health.  Nevertheless, habitat
acreage serves as an adequate surrogate, and is a suitable measure  of on-the-ground progress
made toward EPA's annual performance goal of habitat protection and restoration in the NEP.

QA/QC  Procedures:   Primary data  are prepared by the staff of the NEP based  on their own
reports and from data supplied by other partnering agencies/organizations (that are responsible
for implementing the  action resulting in habitat protection and restoration).  The NEP staff is
requested to follow guidance provided by  EPA to prepare their reports, and to verify  the
numbers.  EPA then confirms that  the national total accurately reflects the information submitted
by each program.  The Office of Water Quality Management Plan (QMP), renewed every five
years, was approved in July 2001.  EPA requires that each organization prepare a document
called  a  quality management plan (QMP)  that: documents the organization's quality policy;
describes its quality system; and identifies the environmental programs  to which the quality
system applies (e.g., those programs that involves the collection or use of environmental data.)

Data Quality Review: No audits or quality reviews conducted yet.

Data Limitations:  It is still early to determine the full extent of data limitations.  Current data
limitations include: information  that  may be reported  inconsistently  (based  on  different
interpretations of the protection and restoration definitions), acreage that may be miscalculated
or misreported, and acreage that may be double counted (same parcel may also be counted  by
parmering/implementing agency or need to be replanted multiple years). In addition, measuring
the number of acres of habitat restored and protected may not directly correlate to improvements
hi the health of the habitat reported (particularly hi the year of reporting), but is rather a measure
of on-the-ground progress made by the NEPs.

Error Estimate: No error estimate is available for this data.

New/Improved Data  or Systems: We are examining the possibility of geo-referencing the data
hi a geographic information system (GIS).
                                         IV-113

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References: Aggregate national  and regional  data  for  this measurement,  as well as data
submitted by the individual National Estuary Programs, is displayed numerically, graphically,
and by habitat type in the Performance Indicators .Visualization and Outreach Tool (PIVOT).
PIVOT            data            is            publicly            available           at
http://www.epa.gov/owow/estuaries/pivot/overview/intro.htm.  The Office of  Water Quality
Management    Plan    (July    2001)     is    available     on    the    Intranet    at
http://intranet.epa.gov/ow/infopolicy.html.

FY 2005 Performance Measure: Annually, beginning in FY04 and in partnership with the
Corps of Engineers and states, achieve  no net loss of wetlands in the Clean Water Act
Section 404 regulatory program.

Performance Database: Since 1989, the goal of the Clean Water Act Section 404 program has
been no net loss of wetlands.

Historically, the Corps has collected limited data on wetlands losses and gains in its RAMS
permit tracking database. The Corps has compiled national Section 404 wetland permitting data
for the last 10 years reflecting wetland acres avoided (through the permit process), permitted for
impacts, and mitigated.

Corps national data for the last 10 years (1993-2002):

•      44,000 acres mitigated/year
•      6,000 acres avoided/year

= Total of 50,000 acres/year of wetlands  offset or preserved while allowing for development
activities (approximately 24,000 acres of impacts authorized per year).

Data Source: Data included in RAMS is generally collected by private  consultants hired by
permit applicants or Corps Regulatory Staff. Data input is generally done by Corps staff.

Methods, Assumptions and Suitability:  RAMS was designed  to be an  administrative aid hi
tracking  permits, thus it  lacks many of  the fields necessary to adequately track important
information regarding wetland losses and gains.  Also, the database was modified differently for
each of the 38 Corps Districts making national summaries difficult. Furthermore, the database is
also proprietary making it difficult to retrofit without utilizing its original developers.

QA/QC Procedures! Historically, there has not been a high level of QA/QC with regard to data
input into RAMS.  Its  antiquated format  and numerous  administrative fields discourage use.
Lack of standard terms and classification also make all aspects of data entry problematic.

Data Quality Reviews: Independent evaluations published hi 2001 by the National Academy of
Sciences (NAS) and the General Accounting Office (GAO) provided a critical evaluation of the
effectiveness of wetlands compensatory mitigation (the restoration, creation, or enhancement of
wetlands to compensate for permitted wetland losses) for authorized losses of wetlands and other
waters under Section 404 of the Clean Water Act.  The NAS determined that available data was
insufficient to determine whether or not the Section 404 program was meeting its goal of no net
loss of either wetland area or function.  The NAS added  that available data suggested that the

                                         IV-114

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program was not meeting its no net loss goal.  Among its suite of recommendations, the NAS
noted that wetland area and function lost and regained over time should be tracked in a national
database and that the Corps should expand and improve quality assurance measures for data
entry.

In response to the NAS,  GAO, and other recent critiques of the effectiveness of wetlands
compensatory mitigation,   EPA  and  the  Corps  hi conjunction with  the  Departments  of
Agriculture, Commerce, Interior, and Transportation released the National Wetlands Mitigation
Action Plan on December 26, 2002. The Plan includes 17 tasks that the agencies will complete
over the next three years to improve the ecological performance and results  of compensatory
mitigation.

One of the major goals articulated in the 2002 interagency National Wetlands Mitigation Action
Plan (MAP) is improving  data collection and  availability (including tracking  and reporting on
acreage and function gains and  losses).  MAP includes three action items the agencies will
complete over the next two years that will improve their ability to track and report on wetlands
gains and losses.  Additional details of the milestones shown below are contained in the MAP:
http://www.epa.gov/owow/wetlands/guidance/index.htmlifenitigation.

•      The  Corps, EPA,  USDA, DOI, and NOAA, in conjunction with states and Tribes,
       compiling and disseminating information regarding existing mitigation-tracking database
       systems in FY04.
•      Building upon the  analysis  of existing  mitigation data base systems,  the Corps, EPA,
       USDA, DOI, and NOAA will establish a shared mitigation database by FY05.
•      Utilizing the  shared database, the Corps, in conjunction with EPA, USDA, DOI,  and
       NOAA, will  provide an annual public report card on compensatory mitigation to
       complement reporting of other wetlands programs by FY05.

Data Limitations: As previously noted, RAMS currently provides the only national data on
wetlands losses and gains  hi the Section 404 Program.  Also, as previously noted, there are a
number of concerns  regarding the  conclusions that  can be drawn from these numbers. Data
quality issues include:

1.  Inability to separate restoration, creation, enhancement and preservation acreage from the
    aggregate "mitigation"  acreage reported
2.  Lack of data regarding how much designated  mitigation acreage was actually undertaken,
    and   how much  of that total was successful
3.  Lack of data regarding how much of the permitted impacts actually occurred, and
4.  Limitations on identifying acres "avoided," as the figure  is only based on the difference
    between original proposed impacts and impacts authorized.  Often, permit applicants who are
    aware of the 404  program's requirements to avoid and minimize impacts to wetlands, make
    initial site selection and site  design decisions that  minimize wetland  impacts  prior to
    submitting a  permit application.  Such avoidance decisions  benefit applicants, as then-
    applications are  more  likely to be accepted  and processed with minor changes.  This
    behavioral influence that  the program engenders is difficult to capture  and quantify, but
    contributes considerable undocumented "avoided" impacts.

Error Estimate: Not applicable

                                        IV-115

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New/Improved Data or Systems: The EPA and the Corps have acknowledged the need for
improved 404 tracking.  Corps is currently piloting a new national permit tracking database
called ORM to replace its existing database (RAMS). As part of the MAP, the Corps is working
with EPA and the other Federal agencies and states to ensure that the version of ORM that is
ultimately deployed will adequately track wetlands gains and losses.  ORM is being designed to
provide unproved tracking regarding:

•      Type of impacts
•      Type of habitat impacted (Using Hydrogeomorphic and Cowardin classification systems)
•      Type of habitat mitigated (Using Hydrogeomorphic and Cowardin classification systems)
•      Type of mitigation (restoration, creation,  enhancement, or preservation)
•      Amount of mitigation by type
•      Differentiate stream mitigation (in linear  feet) from wetlands mitigation (in acres)
•      Spacial tracking via GIS for both impact  and mitigation sites (planned)

References:
http://www.epa.gov/owow/wetlands/guidance/index.htmltfmitigation

FY 2005 Performance Measure: Prevent water pollution and protect aquatic ecosystems so
that overall ecosystem health of the Great Lakes is improved.

Performance Database: US EPA's Great Lakes National Program Office (GLNPO) will collect
and track the components of the index and publish the performance results as part of annual
reporting under the Government Performance and Results Act (GPRA) and as online reporting of
GLNPO's  monitoring  program,  .   Extensive
databases for the indicator components are maintained by GLNPO (phosphorus concentrations,
contaminated sediments, benthic health, fish tissue contamination), by binational agreement with
Environment Canada (air toxics  deposition) or other entities (coastal wetlands), and by local
authorities who provide data to EPA (drinking water quality, beach closures).

Data Source: Data for the index components are tracked internally and reported at the State of
the Lakes Ecosystem Conferences (SOLEC).  The document, "Implementing Indicators 2003-A
Technical Report," presents detailed indicator reports as prepared by primary authors (attending
the conference), including references to data sources found in the summary document.

Methods, Assumptions, and Suitability: The Index is based on a 40 point scale  where the
rating uses select Great Lakes  State of the Lakes Ecosystem indicators  (i.e., coastal wetlands,
phosphorus concentrations, Areas of  Concern (AOC), sediment contamination, benthic health,
fish  tissue  contamination, beach closures, drinking water  quality, and  air toxics deposition).
Each component of the Index is based on a 1  to 5 rating system, where 1 is poor and 5 is good.
Authors of SOLEC indicator reports use best professional judgment to assess the overall status of
the ecosystem component in relation to established endpoints or ecosystem objectives, when
available.  Each of  the index components is  included in the broader suite of Great Lakes
indicators, which was developed through an extensive multi-agency process to satisfy the overall
criteria of  necessary, sufficient and feasible.   Information on the selection process is hi the
document, "Selection of Indicators for Great Lakes Basin Ecosystem Health, Version 4."
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QA/QC Procedures: GLNPO has an approved Quality Management system in place1 that
conforms to the EPA quality management order and is audited every 3 years in accordance with
Federal policy for Quality Management.

Data Quality Review:   GLNPO's quality management system has been given "outstanding"
evaluations in previous peer  and management  reviews2.   GLNPO has  implemented all
recommendations from these external audits and complies with Agency Quality standards.

Data Limitations: Data limitations vary among the indicator components of the Index. The data
are especially good for phosphorus concentrations, fish tissue contamination, benthic health, and
air toxics deposition. The data associated with other components of the index (coastal wetlands,
AOC sediment contamination, beach closures, and drinking water quality) are more qualitative.
Some are distributed among several sources, and without an extensive trend line.  Limitations for
each of the index components are included in the formal indicator descriptions in the document,
"Selection of Indicators for Great Lakes Basin Ecosystem Health, Version 4."
Error Estimate:
Error statistics for the Great Lakes Index have not been quantified.  Each unit of the 40 point
scale represents 2.5% of the total, so any unit change in the assessment of one of the component
indicators would result in a change of the index of that magnitude. The degree of environmental
change required to affect an indicator assessment, however, may be significantly large.

New/Improved  Data  or Systems: The  data  system specifically  for this  index is  being
developed.  Data continue to be collected through the SOLEC process by various agencies,
including GLNPO. Efforts are currently hi progress to integrate various Great Lakes monitoring
programs to better meet SOLEC objectives and to increase  efficiencies hi data collection and
reporting.

References:

1. "Quality Management Plan for the Great Lakes National Program Office."  EPA905-R-02-
   009. October 2002, Approved April 2003.

2.  "GLNPO Management Systems Review of 1999. " Unpublished - hi USEPA Great Lakes
   National Program Office files.

3. Canada and  the United States. "State of the Great Lakes 2003." ISBN 0-662-34798-6,
   Environment Canada, Burlington, Ontario, Cat. No. En40-l 1/35-2003E, and U.S.

4. Environmental Protection Agency, Chicago, EPA 905-R-03-004.  2003.  Available on CD
   and online at .

5. Canada and the United States. "Implementing Indicators 2003 - A Technical Report." ISBN
   0-662-34797-8  (CD-Rom), Environment Canada,  Burlington,  Ontario, Cat.  No. Enl64-
    1/2003E-MRC (CD-Rom), and U.S. Environmental Protection Agency, Chicago, EPA 905-
   R-03-003.  2003. Available on CD from U.S. EPA/Great Lakes National Program Office,
   Chicago.

6. Bertram, Paul  and  Nancy Stadler-Salt.  "Selection of Indicators for Great Lakes  Basin

                                       FV-117

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   Ecosystem Health, Version 4."  Environment Canada, Burlington, Ontario, and U.S. EPA,
   Chicago. 2000. Available online at .

FY 2005 Performance Measure: The average concentrations of PCBs in whole lake trout
and walleye.

Performance Database:  Great  Lakes National Program Office (GLNPO) base monitoring
program1. The key fields for this measure are Lake Trout and Walleye (Lake Erie). Reporting
starts with 1972 data for Lake Michigan and 1977 or 1978 data for the other Lakes.  In FY05, the
database will contain QA/QC data from fish collected in 2003.

Data Source: GLNPO's  ongoing  base monitoring program, which has included work with
cooperating organizations such as the U.S. Geological Survey (USGS) and the U.S. Fish and
Wildlife Survey (USFWS).

Methods, Assumptions, and  Suitability: This indicator provides concentrations of selected
organic contaminants  in  sport fish from the Great Lakes to: (1) determine time  trends hi
contaminant concentrations, (2) assess impacts of contaminants on the fishery, and (3) to assess
potential human and wildlife  exposures from consuming contaminated  sport fish.  The data
provide two elements of contaminant concentrations: The first element includes data from 600-
700 mm lake trout (Salvelinus namaycush) whole fish composites (5 fish) from each of the lakes
(walleye, Stizostedion vitreum vitreum, hi Lake Erie). These data are used to assess time trends in
organic contaminants in the open waters of the  Great Lakes, using fish as biomonitors. These
data can  also  be used to assess the risks of such contaminants on the health of this  important
fishery, and on wildlife that consume them.

The second element of the indicator focuses on assessing human exposures via consumption of
popular  sport  fish.  Coho (Oncorhynchus  kisutch)  and chinook salmon (Oncorhynchus
tshawytscha) from each lake (rainbow trout, Salmo gairdneri, hi Lake Erie) are collected during
the fall spawning run, and composite fillets (5 fish) are analyzed for organic contaminants to
assess  human exposure. The coho  salmon spawn at 3 years of age, and so their body burdens
reflect a more focused and consistent exposure time compared to the lake trout which may
integrate exposures over 4 to  10 yrs depending on the  lake. Chinook salmon spawn after 4-5
years, and have higher (and thus  more detectable) concentrations than the coho salmon and also
represent a consistent exposure time. Thus tune trends for  consistent  age  fish as well as
consistent size fish can be assessed from these data.

QA/QC  Procedures:  GLNPO  has an approved Quality Management  system hi place2 that
conforms to the EPA quality management order and is audited every 3 years hi accordance with
Federal policy for Quality Management.  The Quality Assurance (QA) plan that supports the fish
contaminant program is approved and available on request3. The draft field sampling Quality
Assurance Project Plan (QAPP) is being revised and will be submitted to the GLNPO QA officer
for review by  September 30, 20034.

Data  Quality  Review:   GLNPO's  quality  management system has  been  evaluated  as
"outstanding"  in previous peer and  management reviews5.   GLNPO has implemented all
recommendations from these external audits and complies with Agency Quality standards.
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Data Limitations:  The top predator fish (lake trout) program was designed specifically for
lakewide trends. It is not well suited to portray localized changes.

Error Estimate: The goal of the fish contaminant program is to detect a 20% change in each
measured contaminant concentration  between two consecutively sampled periods at each site.
The program was designed to reach that goal with 95% confidence.

New/Improved Data or  Systems: The  GLENDA database is a significant new system with
enhanced capabilities. Existing and future fish data will be added to GLENDA.

"The Great Lakes Fish Monitoring Program - A technical and Scientific Model For Interstate
Environmental Monitoring" September, 1990. EPA503/4-90-004.

"Great   Lakes   National    Program    Office    Indicators.        Fish    Indicators."
http://www.epa.gov/gmpo/glmdicators/fishcontarninants.html
"Trends in Great Lakes Fish Contaminants ", Dr. Deborah Swackhammer, Univ of Minnesota
Environ. Occ. Health, School of Public Health, EPA Grant #GL97524201-2, 7/1/02.D& Vault, D.
S. 1984. Contaminant analysis of fish from Great Lakes harbors and tributary mouths. U.S.
Environmental Protection Agency, Great Lakes National Program Office. EPA 905/3-84-003.

De Vault, D. S.  1985. Contaminants in  fish from Great Lakes harbors and tributary mouths.
Archives of Environmental Contamination and Toxicology 14: 587-594.

De Vault, D. S., P. Bertram, D. M. Whittle and S. Rang. 1995. Toxic contaminants in the Great
Lakes.  State of the Great Lakes Ecosystem Conference (SOLEC). Chicago and Toronto, U.S.
Environmental Protection Agency, Great  Lakes National Program Office and  Environment
Canada.

De Vault, D. S., R. Hesselberg, P. W. Rodgers and T. J. Feist.  1996. Contaminant trends in lake
trout and walleye from the Laurentian Great Lakes. Journal of Great Lakes Research 22: 884-
895.

De Vault, D. S. and J. A. Weishaar.  1983.  Contaminant analysis of 1981 fall run coho salmon.
U.S. Environmental  Protection Agency,  Great Lakes National Program Office. EPA 905/3-83-
001.

De Vault, D. S. and J. A. Weishaar.  1984.  Contaminant analysis of 1982 fall run coho salmon.
U.S. Environmental  Protection Agency,  Great Lakes National Program Office. EPA 905/3-85-
004.

De Vault, D. S., J. A. Weishaar, J. M.  Clark and G. Lavhis. 1988. Contaminants and trends in fall
run coho salmon. Journal of Great Lakes Research 14: 23-33.

De Vault,  D. S., W.  A. Willford, R. Hesselberg, E.  Nortrapt  and E. Rundberg.  1985.
Contaminant trends in lake trout  (Salvelinus namaycush) from the upper Great Lakes. Archives
of Environmental Contamination and Toxicology 15: 349-356.
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De Vault, D. S., W. A. Willford, R. J. Hesselberg and D. A. Nortrupt. 1986. Contaminant trends
in lake trout (Salvelinus namaycush) from the upper Great Lakes. Archives of Environmental
Contamination and Toxicology 15: 349-356.

Eby, L. A., C. A. Stow, R. J. Hesselberg and J. F. Kitchell. 1997. Modeling changes in growth
and  diet on polychlorinated  biphenyl  bioaccumulation  hi "Coregonus  hoyi".  Ecological
Applications 7(3): 981-990.

Giesy, J. P., et al. 1995. Contaminants hi fishes from Great Lakes influenced sections and above
dams of three Michigan  rivers:  III.  Implications for  health  of bald eagles. Archives  of
Environmental Contamination and Toxicology 29: 309-321.

Giesy, J. P., J. P. Ludwig and D. E. Tillett. 1994. Deformities hi birds of the Great Lakes region:
assigning causality. Environmental Science and Technology 28(3): 128A-135A.

Giesy, J. P., et al. 1994. Contaminants in fishes from Great Lakes-influenced sections and above
dams of three Michigan rivers. II: Implications for health of mink. Archives of Environmental
Contamination and Toxicology 27: 213-223.

Glassmeyer, S. T., D. S. De Vault, T. R. Myers and R. A. Hites. 1997. Toxaphene in Great Lakes
fish: a temporal, spatial, and trophic study. Environmental Science and Technology 31: 84-88.

Glassmeyer, S. T., K. E. Shanks and R. A. Hites. 1999.  Automated toxaphene quantitation by
GC/MS. Analytical Chemistry hi press.

GLNPO.  1981. A Strategy for Fish Contaminant Monitoring in the Great Lakes. USEPA Great
Lakes National Program Office..

Jeremiason, J. D., K. C. Hornbuckle and S. J. Eisenreich. 1994. PCBs in Lake Superior, 1978-
1992: decreases hi water concentrations reflect loss by volatilization. Environmental Science and
Technology 28(5): 903-914.

Kubiak, T. J., Harris, H. J., Smith, L. M., Schwartz, T. R., Stalling, D. L., Trick, J. A., Sileo, L.,
Docherty, D. E., and Erdman, T. C.  1989. Microcontaminants and reproductive impairment of
the Forster's Tern  on  Green  Bay, Lake  Michigan  - 1983.  Archives  of Environmental
Contamination and Toxicology 18: 706-727.

Mac, M. J.  and C. C. Edsal. 1991. Environmental contaminants and the reproductive success of
lake trout in the Great Lakes. J. Tox. Environ. Health. 33: 375-394.

Mac, M. J., T. R. Schwartz, C. C. Edsall and A.  M. Frank. 1993. Polychlorinated biphenyls in
Great Lakes lake trout and their eggs: relations to survival and congener composition 1979-1988.
Journal of Great Lakes Research 19(4): 752-765.

Madenjian, C. P., T.  J. DeSorcie, R. M. Stedman, E. H. J. Brown, G. W. Eck, L. J. Schmidt, R. J.
Hesselberg, S.  M.  Chernyak  and  D.  R.  Passino-Reader.  1999.  Spatial  patterns  in  PCB
concentrations of Lake Michigan lake trout. Journal of Great Lakes Research 25(1): 149-159.
                                        IV-120

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Madenjian, C. P., R. J. Hesselberg, T. J. Desorcie, L. J. Schmidt, R. M. Stedman, L. J. Begnoche
and D. R. Passino-Reader. 1998. Estimate of net trophic transfer efficiency of PCBs to Lake
Michigan lake trout from their prey. Environmental Science and Technology 32(7): 886-891.

Pearson, R. F., K. C. Hornbuckle, S. J. Eisenreich and D. L. Swackhammer. 1996. PCBs in Lake
Michigan water revisited. Environ. Sci. & Technol. 30(5): 1429-1436.

Rodgers, P. W. and W. R. Swain. 1983. Analysis of polychlorinated biphenyl (PCB) loading
trends in Lake Michigan. Journal of Great Lakes Research 9: 548-558.

Safe, S. H. 1994. Polychlorinated biphenyls (PCBs):  environmental impact, biochemical and
toxic responses, and implications for risk. CRC Critical Reviews in Toxicology 24(2): 87-149.

Schmidt, L. J., and Hesselberg, R. J. 1992. A mass spectroscopic method for analysis of AHH-
inducing and other polychlorinated biphenyl congeners and selected pesticides in fish. Archives
of Environmental Contamination and Toxicology 23: 37-44.

Stow, C. A. 1995. Factors associated with PCB concentrations  in Lake Michigan salmonids.
Environmental Science and Technology 29(2): 522-527.

Stow, C. A., S. R. Carp and J. F. Amrheim. 1994. PCB  concentration trends in Lake  Michigan
coho  (Oncorhynchus kisutch)  and chinook salmon  (O.  tshawytscha).  Canadian Journal of
Fisheries and Aquatic Science 51: 1384-1390.

Stow, C. A. and S. R. Carpenter. 1994. PCB accumulation in Lake Michigan coho and chinook
salmon: individual-based models using allometric  relationships. Environmental  Science and
Technology 28: 1543-1549.

Stow, C. A., S. R. Carpenter, L. A. Eby, J. F. Amrhein and R. J. Hesselberg. 1995. Evidence that
PCBs are approaching stable concentrations in Lake Michigan fishes. Ecological Applications 5:
248-260.

Stow, C. A. and S. S. Qian.  1998. A size-based probabilistic assessment of PCB exposure from
Lake Michigan fish consumption. Environmental Science and Technology 32: 2325-2330.

Swackhammer, D., J. Charles  and R. Hites.  1987. Quantitation of toxaphene in environmental
samples using negative ion chemical ionization mass spectrometry. Analytical Chemistry 59:
913-917.

Swackhammer, D. L. 1996. Studies of polychlorinated biphenyls in the. Great Lakes. Issues in
Environmental Science and Technology 6: 137-153.

Swackhammer, D. L. and R. A. Hites. 1988. Occurrence and bioaccumulation of organochlorine
compounds in fishes from Siskiwit Lake. Environmental Science and Technology 22: 543-548.

Swackhammer, D. L. and  A.  Trowbridge. 1997.  LMMBS Methods Compendium:  Vol.  2
Organics and Mercury Sample Analysis Techniques, Chapter 1, Section 042. USEPA. 905-R-97-
012b.

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Trowbridge, A. G. and D. L. Swackhammer. 1999. Biomagnification of Toxic PCB Congeners in
the Lake Michigan Foodweb. Bioaccumulative Toxic Compounds  in  the  Environment. R.
Lipnick, D. Muir,  J. Hermens and K. C.  Jones. Washington, DC,  ACS Symposium Series
Monograph: in review.
"Quality Management Plan for the Great Lakes National Program Office."  EPA905-R-02-009.
October 2002, Approved April 2003.
Swackhammer, D.  L. 2001. "Trends in Great Lakes Fish Contaminants."  Unpublished - in
USEPA Great Lakes National Program Office files.
Swackhammer, D.L. February 2002. "Trends in Great Lakes Fish Contaminants."  Unpublished
- in USEPA Great Lakes National Program Office files.
"GLNPO Management Systems Review of 1999. " Unpublished - in USEPA Great Lakes
National Program Office files.

FY 2005 Performance Measure:  Concentration trends of toxic chemicals in the air in the
Great Lakes basin will decline.

Performance Database: Great Lakes National Program Office (GLNPO) integrated atmospheric
deposition network  l (IADN) operated jointly with Canada. Reporting starts with 1992 data,
collected through the joint  US/Canadian  Integrated Atmospheric Deposition Program  and
includes, PCBs, PAHs,  and pesticides. Monitoring results from 2003 will be reported in 2005.

Data Source: GLNPO and Environment Canada are the principal sources of the data.  Data also
come through in-kind support and information sharing with other Federal agencies, with Great
Lakes' States, and with Canada.

Methods, Assumptions, and Suitability: There are  five  master IADN stations,  one for each
lake,  which are supplemented by satellite stations in other locations.  The master stations are
located in remote areas and are meant to represent regional background levels.  Concentrations
from the master stations are used for the performance measure.  Concentrations from the satellite
stations in  Chicago and Cleveland are also sometimes used to demonstrate the importance of
urban areas to atmospheric deposition to the Lakes.
Air samples are collected for 24 hours using hi-volume samplers  containing an  adsorbent.
Precipitation  samples are  collected as 28-day  composites.  Laboratory analysis  protocols
generally call for solvent extraction of the organic sampling media with addition of surrogate
recovery standards.  Extracts are then  concentrated followed  by  column chromatographic
cleanup,  fractionation,  nitrogen blow-down  to  small volume  (about  1  mL) and injection
(typically 1 uL) into GC-ECD or GC-MS instruments.

All IADN  data are loaded and quality controlled  using the  Research Database  Management
System (RDMQ), a Statistical Analysis System (SAS) program. RDMQ provides a unified set of
quality assured data, including flags for each data point that can be used to evaluate the usability
of the data. Statistical  summaries of annual concentrations are generated by the program and
used as input into an atmospheric loading calculation. The loadings calculation is described in
detail  in  the Technical  Summary  referenced  below.    However,  the  averaged  annual
concentrations rather than the loadings are used in the performance measure.
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QA/QC Procedures: GLNPO has a Quality Management system in place, which conforms to
the EPA quality management order and is  audited every 3 years in accordance with Federal
policy for Quality Management2. Quality Assurance Project Plans are in place for the laboratory
grantee, as well as for the network as a whole.  A jointly-funded QA contractor  conducts
laboratory audits  and tracks QA statistics.  Data from all contributing agencies are quality-
controlled using the SAS-based system.

Data Quality  Review:   GLNPO's quality  management  system has  been  evaluated  as
"outstanding" in previous peer and management reviews3.  This program has a joint Canadian
US quality system and workgroup that meets twice a year.  GLNPO  has implemented all
recommendations  from these external audits and complies with Agency Quality standards4.

A regular set of laboratory and field blanks is taken and recorded for comparison to the IADN
field  samples.  In addition,  a  suite of chemical  surrogates and  internal standards is used
extensively in the analyses.   A jointly-funded QA contractor conducts laboratory audits and
intercomparisons and tracks QA statistics.  As previously mentioned, data from all contributing
agencies are quality-controlled using a SAS-based system.

Data Limitations: The sampling design is dominated by rural sites that under emphasize urban
contributions to deposition; thus although the data is very useful for trends information, there is
less assurance of the representativeness of deposition to the whole lake.  There are gaps in open
lake water column organics data, thus limiting our ability to calculate atmospheric loadings.

Error estimate: Concentrations have an error of +/- 40%, usually less.  Differences between
laboratories have been found to be 40% or less.  This is outstanding given the very low levels of
these pollutants in the air and the difficulty in analysis. The performance measure examines the
long-term trend.

New/Improved Data or Systems: GLNPO expects to post joint data that has passed quality
review to < http://binational.net/ >, a joint international web site, and to the IADN website at <
www.msc.ec.gc.ca/iadn/ >.

References:

1. "Great Lakes National Program Office Indicators. Air Indicators. "
http://www.epa.gov/glnpo/glindicators/ataiospheric.html

Details of these analyses can be found in the Laboratory Protocol Manuals or the agency project
plans, which can be found on the IADN resource page
at:http://www.msc.ec.gc.ca/iadn/resources/resources e.html

Overall results of the project can be  found in  "Technical  Summary of Progress under the
Integrated Atmospheric Deposition Program 1990-1996" and the Draft "Technical Summary of
Progress under the Integrated Atmospheric Deposition 1997-2002".  The former can also  be
found on the IADN resource page.

2. "Quality Management Plan for the Great Lakes National Program Office." EPA905-R-02-
009.  October 2002, Approved April 2003.

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3. "GLNPO Management Systems Review of 1999. "  Unpublished - in USEPA Great Lakes
National Program Office files.

4. "Integrated Atmospheric Deposition Network Quality Assurance Program Plan - Revision 1.1.
Environment Canada and USEPA.  June 29, 2001. Unpublished - in USEPA Great Lakes
National Program Office files.

FY 2005 Performance Measure;  Cumulative total of Areas of Concern within the Great
Lakes Basin that have been restored and delisted.

Performance Database: US  EPA's Great  Lakes  National Program Office will track the
cumulative   total   Areas    of   Concern   (AOC)   and   post   that    information
http://www.epa.gov/ghipo/aoc/index.html>  Forty-three AOCs have been identified: 26 located
entirely within the United States; 12 located wholly within Canada; and five that are shared by
both countries. GLNPO is tracking the 31 which are within the US or shared; however, none of
these are currently restored and delisted.

Data Source: Internal  tracking and  communications  with  Great Lakes States,  the  US
Department of State and the International Joint Commission (IJC).

Methods, Assumptions, and Suitability: US EPA's Great Lakes National Program Office is in
regular communication with the Great Lakes States, the US Department of State and the IJC, and
is responsible for coordinating and overseeing the de-listing of Areas of Concern.

QA/QC Procedures: GLNPO has  an  approved  Quality Management system  in place1 that
conforms to the EPA quality management order and is audited every 3 years in accordance with
Federal policy for Quality Management

Data Quality Review:  GLNPO's quality management  system has been given  "outstanding"
evaluations in previous peer  and management reviews2.   GLNPO  has  implemented all
recommendations from these external audits and complies with Agency Quality standards.
Data Limitations: None known.

Error Estimate: None.

New/Improved Data or Systems: NA

References:

GLNPO will develop and maintain the appropriate tracking system once there are any de-listed
US or Binational Areas of Concern.  Information regarding Areas of Concern is currently
available online at: http://www.epa.gov/ghipo/aoc/index.html

1. "Quality Management Plan for the Great  Lakes National Program Office." EPA905-R-02-
   009. October 2002, Approved April 2003.

2.  "GLNPO Management Systems Review of 1999. " Unpublished  - in USEPA Great Lakes
   National Program Office files.

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FY 2005 Performance Measure; Cubic yards of contaminated sediment in the Great Lakes
remediated, (cumulative from 1997)

Performance Database:  Data tracking sediment remediation  are compiled in two  different
formats. The first is a matrix that shows the cumulative total of contaminated sediment that was
remediated in the Great Lakes  basin from 1997 to 2002 for each Area of Concern or other non-
Areas of Concern with  sediment remediation.  The second format depicts the yearly totals for
sediment remediation projects graphically.  These databases are reported approximately one year
after the completion of work.

Data Source: GLNPO collects sediment remediation data from various state and Federal project
managers across the Great Lakes region.   These data are obtained directly from the project
manager via an information fact sheet the  project manager completes for any site in the Great
Lakes basin that has performed any remedial work on  contaminated sediment. The project
manager also indicates whether an approved Quality Assurance Project Plan (QAPP) was used in
the collection of data at the site.  This is used to decide if the data provided by the project
manager are reliable for  GLNPO  reporting purposes.  If an approved  QAPP was  not used,
sediment data would likely not be reported by GLNPO

Methods, Assumptions, and Suitability:  The data collected to track sediment remediation hi
the Great Lakes show the amount of sediment remediated for that year, the  amount of sediment
remediated in prior years, and the amount of sediment remaining to be addressed for a particular
site. This format is suitable for year-to-year comparisons for individual sites.

QA/QC Procedures: GLNPO relies on the individual government/agency project managers to
provide  information  on whether an  approved QAPP  was  hi place during remediation of
contaminated sediment.  This tracking database houses information on the calculated amount of
sediment remediated at individual sites as provided by the project managers.  It is then GLNPO's
responsibility to determine if the data are usable based upon the information sheet provided by
the project managers.

Data Quality  Review: The data,  hi  both the graphic and matrix formats, are reviewed by
management, individual project managers, and GLNPO's  Sediment Team Leader prior to being
released. GLNPO's quality management system has been given "outstanding"  evaluations hi
previous peer and management reviews. GLNPO has implemented all recommendations from
these external audits and complies with Agency Quality standards.

Data Limitations: The data provided hi the sediment tracking database should be used as a tool
to track sediment remediation progress at sites across the Great Lakes. Many of the totals for
sediment remediation are estimates provided by  project managers.   For specific  data uses,
individual project managers should be contacted to provide additional information.

Error Estimate: The amount of sediment remediated or yet to be addressed should be viewed as
estimated data.  A specific error estimate is not available.

New/Improved Data or Systems: Existing tracking systems are anticipated to remain in place.
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References:

1. Collier, D.C. 2002. "Sediment Remediation Matrix ". Unpublished - in USEPA Great Lakes
   National Program Office files.

2. Collier, D.C. 2002.  "Sediment Remediation Pie Charts ". Unpublished - hi USEPA Great
   Lakes National Program Office files.

3. Collier, D.C. 2002. "Compilation of Project Managers Informational Sheets".  Unpublished
   - hi USEPA Great Lakes National Program Office files.

FY 2005 Performance Measure; Acres of submerged aquatic vegetation (SAV) present in
the Chesapeake Bay.

Performance Database:  SAV acres hi Chesapeake Bay.  Total acres surveyed and estimated
additional acres from  1978 through 2002,  excluding the years  1979-1983 and 1988 when no
surveys were conducted. FY 2005 Annual Performance Report for this measure will be based on
the results of the survey conducted the previous calendar year (2004).  We expect to receive the
preliminary survey results for calendar year 2004 in April 2005.

Data Source:  Virginia Institute of Marine  Sciences provides the data (via an EPA Chesapeake
Bay  Program grant to Virginia Institute of Marine Sciences). EPA has confidence hi the third
party data and believes the data are accurate and reliable based on QA/QC procedures described
below.

Methods, Assumptions and Suitability:   The SAV survey is a general monitoring program,
conducted to optimize precision and accuracy hi characterizing annually the status  and trends of
SAV hi tidal portions of the Chesapeake Bay.  The general plan is to follow fixed flight routes
over shallow water areas of the Bay, to comprehensively survey  all tidal shallow water areas of
the Bay and its tidal tributaries.  Non-tidal areas are omitted from the survey.  SAV beds less
than 1  square meter are not included due to the limits of the photography and interpretation.
Annual monitoring  began in 1978 and is ongoing.   Methods are described hi the  Quality
Assurance  Project  Plan  (QAPP) on  file  for  the  EPA  grant and  at  the VIMS  web site
(http://www.vhns.eduhttp://www.vims.edu/bio/sav/X

QA/QC Procedures:  Quality assurance project plan for the EPA grant to the Virginia Institute
of Marine Sciences describes data collection, analysis, and management methods. This is on file
at   the   EPA   Chesapeake   Bay   Program  Office.      The   VIMS   web   site  at
http://www.vhns.edu/bio/sav/ provides this information as well.  Metadata are included with the
data set posted at the VIMS web site (http://www.vhns.edu/bio/sav/metadata/recent.html).

Data Quality Reviews:  This indicator has undergone  extensive technical and peer review by
state, Federal and non-government organization partner members of the SAV workgroup and the
Living Resources subcommittee. Data collection, data analysis and QA/QC are conducted by the
principal investigators/scientists.   The data are peer reviewed by scientists on the workgroup.
Data selection and interpretation, the presentation of the  indicator, along with all  supporting
information and conclusions, are arrived at via consensus by the scientists and resource manager
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members of the workgroup.  The workgroup presents the indicator to the subcommittee where
extensive peer review by Bay Program managers occurs.

No audits have been conducted by the Inspector General (IG) or evaluations by the General
Accounting Office (GAO), OMB and National Academy of Public Administration (NAPA). No
deficiencies identified hi  external reviews.  Data are not identified  as an "Agency-Level or
Material Weakness" as a result of EPA decisions under the Federal Managers Financial Integrity
Act.
Data Limitations:   Due to funding constraints, there were no surveys in the years 1979-1983
and 1988. Spatial gaps in 1999 occurred due to hurricane disturbance and subsequent inability to
reliably photograph  SAV.   Spatial  gaps  in 2001 occurred due to post-nine-eleven  flight
restrictions near Washington D.C.

Error Estimate: No error estimate is available for this data.

New/Improved Data or Systems:   Some technical  improvements  (e.g., photomterpretation
tools) were made over the 22 years of the annual  SAV survey in Chesapeake Bay.

References:

See Chesapeake Bay SAV special reports  at http://www.vims.edu/bio/sav/savreports.html and
bibliography at http://www.vims.edu/bio/sav/savchespub.html. The SAV distribution data files
are    located     at     http://www.vims.edu/bio/sav/savdata.html     and    also     at
http://www.chesapeakebav.net/pubs/statustrends/88-data-2002.xls.    The  SAV  indicator is
published at http://www.chesapeakebay.net/status.cfm?sid=88.

FY 2005 Performance Measures:

•      Reduce nitrogen loads entering Chesapeake  Bay, from 1985 levels (2002  Baseline:
       51 million pounds/year reduced.)
•      Reduce phosphorus loads entering Chesapeake Bay,  from 1985 levels.   (2002
       Baseline: 8 million pounds/year reduced.)
•      Reduce sediment loads entering Chesapeake Bay, from 1985 levels. (2002  Baseline:
       0.8 million tons/year reduced.)

Performance Database:  Nutrient and Sediment Loads Delivered to the Chesapeake Bay. The
Bay     data     files     used     in      the     indicator      are     located     at
http://www.chesapeakebay.net/pubs/statustrends/186-data-2003.xls. Data have been collected in
1985, 2000, 2001, and are expected on an annual basis after 2001.  There is a two year data lag.
Load data are from Chesapeake Bay watershed portions of NY, MD, PA, VA, WV, DE, and DC.

FY 2005 Annual Performance Report for these measures will be based on the results of the 2003
data collection.  We expect to  receive the  preliminary results for calendar year 2003 in April
2005.

Data Source:  State/district data are provided to the Chesapeake Bay Program Office for input
into the Chesapeake Bay Program Watershed Model.
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Methods, Assumptions and Suitability: The data are of high quality. Data are consolidated by
watershed boundaries at the state level and provided to the Chesapeake Bay Program Office for
input into the watershed model.  Data are collected from states and local governments programs.
Methods are described  at  http://www.chesapeakebay.net/data/nidex.htm.  (refer to  CBP
Watershed Model Scenario Output Database, Phase 4.3).  For more information contact Kate
Hopkins at hopkins.kate@epa.gov or Jeff Sweeney isweeney@chesapeakebay.net

QA/QC Procedures:   State offices have documentation of the  databases used indicating the
design, construction and maintenance conforming to existing U.S. Department of Agriculture
Natural Resources Conservation Service (USDA/NRCS) technical standards and specifications
for nonpoint source data and PCS  standards  for point source data.  State offices also have
documentation of implemented  Best Management Practices (BMPs) based on USDA NRCS
standards and specification and the Chesapeake Bay Program's protocols and guidance.  BMPs
are traditionally used  to  reduce pollutant loads  coming  from  nonpoint  sources  such as
urban/suburban runoff,  agriculture, and  forestry activities. Some people also think of nutrient
reduction technology used at wastewater treatment plants as a point source BMP, however, in the
traditional sense, BMPs have been used to describe the suite of practices used to reduce pollutant
loads coming from agricultural, forest, and urban/suburban lands. References include: the USDA
NRCS Technical Guide and Appendix H from the Chesapeake Bay Program (contact Russ
Mader at mader.russ@epa.gov or Kate Hopkins at hopkins.kate@epa.gov).  Quality assurance
program plans are available in each state office.

Data Quality Reviews: All data are reviewed  and approved by  the individual jurisdictions
before input to the watershed model.   Model results are also reviewed and approved before
release to the web site. Processes are  reviewed  by the Tributary  Strategy Workgroup of the
Nutrient  Subcommittee.  The model itself is given a quarterly peer review by  an  outside
independent group of experts.

No audits have been conducted by  the Inspector General (IG) or  evaluations by the General
Accounting Office (GAO), OMB and National  Academy of Public Administration (NAPA). No
deficiencies  identified in external reviews.  Data are not identified as  an "Agency-Level or
Material Weakness" as a result of EPA decisions under the Federal Managers Financial Integrity
Act.

Data Limitations: Data collected from voluntary collection programs are not included in the
database, even though they may be valid and reliable.  The only data submitted by state and local
governments to our office  are data that are required for reporting under the cost share and
regulatory programs.  State and local governments  are aware that additional data collection
efforts are being conducted by non-governmental organizations and that several entities are
involved in using BMPs, however, they  are done independently of the cost share programs and
are therefore not reported.

Error Estimate: There may be  errors of omission, mis-classification, incorrect georeferencing,
mis-documentation or mistakes in the processing of data.

New/Improved Data or Systems:  The next version of the watershed model is currently under
development and will be completed in  2005.  The new  version(phase 5) will have increased
spatial resolution and  ability to model the effect of management practices.  The phase 5

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watershed model is a joint project with cooperating state and Federal agencies. Contact Gary
Shenk     gshenk@chesapeakebay.net      or      see     the      web      site      at
http ://www.chesapeakebay .net/phaseS .htm

References:
See http://www.chesapeakebay.net/data/index.htm, refer to CBP Watershed  Model Scenario
Output Database, Phase 4.3.  Contact Kate Hopkins at hopkins.kate@epa.gov or Jeff Sweeney
j sweeney@chesapeakebav.net
The  nutrient  and  sediment  loads  delivered  to  the  Bay  indicator  are published  at
http://www.chesapeakebav.net/status.cfm?sid== 186. The nutrient and sediment loads delivered to
the    Bay    data     files     used    in    the     indicator     are    located     at
http://www.chesapeakebay.net/pubs/statustrends/186-data-2003 .xls.
See "Chesapeake Bay Watershed Model Application and Calculation of Nutrient and Sediment
Loadings, Appendix H:  Tracking Best  Management Practice Nutrient  Reductions  in  the
Chesapeake Bay Program, A Report of the Chesapeake Bay Program Modeling Subcommittee",
USEPA  Chesapeake  Bay  Program Office,  Annapolis,  MD, August  1998, available  at
http://www.chesapeakebay.net/pubs/777.pdf
See    USDA    NRCS     Field    Office     Technical    Guide     available     at
http://www.nrcs.usda.gov/technical/efotg/

FY 2005 Performance Measure: Prevent water pollution and protect aquatic ecosystems so
that overall aquatic system health of coastal waters of the Gulf of Mexico is improved on
the "good/fair/poor" scale of the National Coastal Condition Report.

FY 2005 Performance Measure; Reduce releases of nutrients throughout the Mississippi
River Basin to reduce the size of the hypoxic zone in the Gulf of Mexico.

Performance  Database:  (1)  Louisiana Coastal Hypoxia Shelfwide Survey metadata (data
housed at National Oceanic and Atmospheric Administration/National Ocean Data Center, Silver
Spring,  Maryland).   Funds for this  research are provided by  the National Oceanic and
Atmospheric Administration, Coastal Ocean Program (NOAA/COP)
(2) Southeast Area Monitoring and Assessment Program (SEAMAP) - Gulf surveys.

Data Source:   (1) Hydrographic data are collected during annual  surveys  of the Louisiana
continental shelf.  Nutrient, pigment  and station information data are also acquired.  The
physical, biological and chemical data collected are part of a long-term coastal Louisiana dataset.
The goal is to understand physical  and biological processes that  contribute  to the causes of
hypoxia and use the data to support environmental models for use by resource managers.

(2)  The  Southeast  Area  Monitoring  and   Assessment  Program   (SEAMAP)   is   a
state/Federal/university program for collection, management  and dissemination  of fishery-
independent data and information in the southeastern United States

Methods, Assumptions and Suitability: (1) During the shelfwide cruise-, data is collected along
transects from the mouth of the Mississippi River to the Texas border.  Information is collected
on a  wide range  of  parameters,  including conductivity/temperature/depth (CTD), light
penetration, dissolved oxygen, suspended solids, nutrients, phytoplankton,  and chlorophyll.
Hydrographic, chemical, and biological data from two transects of Terrebonne Bay on a monthly

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basis, and bimonthly, off Atchafalaya Bay. There is a single moored instrument array in 20-m
water depth in the core of the hypoxic zone that collects vertical conductivity/temperature data,
as well as near-surface, mid, and near-bottom oxygen data; an upward directed Acoustic Doppler
Current Profiler (ADCP) on the seabed measures direction and speed of currents from the seabed
to the surface.  There is also an assortment of nutrient and light meters.

Station depths range from 3.25 to 52.4 meters. The objective is to delimit and describe the
area of midsummer bottom dissolved oxygen less than 2 (mg. L).  Northern end stations of
transects  are chosen based on the survey vessel's minimum depth limits for each longitude.

Standard data collections include  hydrographic  profiles  for temperature, salinity, dissolved
oxygen, and optical properties. Water samples for chlorophyll a and phaeopigments, nutrients,
salinity, suspended sediment, and phytoplankton community composition are collected from the
surface, near-bottom, and variable middle depths.

Details of data collection and methodology are provided in referenced reports.

QA/QC  Procedures:   NOAA does not require written QA/QC procedures  or  Quality
Management Plan; however, the procedures related to data collection are covered in the metadata
files.

SEAMAP Data Management System (DMS) is based on information contained in the SEAMAP
Gulf and South Atlantic DMS Requirements Document developed through a cooperative effort
between National Marine Fisheries Service (NMFS) and other SEAMAP participants.

Data  Quality  Reviews: (1) Essential components of an environmental monitoring program in
the Gulf of Mexico include efforts to document the temporal and spatial extent of shelf hypoxia,
and to collect  basic hydrographic, chemical and biological data related to the development of
hypoxia  over  seasonal cycles.  All data collection protocols and data are presented  to  and
reviewed by the Mississippi River/Gulf  of Mexico Watershed Nutrient Task Force (the Task
Force) in support of the adaptive  management approach as outlined in the Action Plan for
Reducing, Mitigating, and Controlling Hypoxia in  the Northern Gulf of  Mexico (the  Action
Plan).

(2)  Biological and environmental data from all  SEAMAP-Gulf surveys  are included in the
SEAMAP Information System, managed  in conjunction with National Marine Fisheries Service
- Southeast Fisheries Science Center (NMFS-SEFSC).  Raw data are edited by the collecting
agency and verified by the SEAMAP Data Manager  prior to entry into the system. Data from all
SEAMAP-Gulf surveys  during  1982-2002 have been entered into the  system, and data from
2003 surveys are in the process of being verified, edited, and entered for storage and retrieval.

Data  Limitations:  Some  existing monitoring for shelf-wide conditions are currently only
performed each year primarily, but not exclusively, during July.   Resources to conduct them
limit the  spatial boundaries of some of these existing monitoring efforts. Experience with the
datasets has shown that when data  are plotted or  used in further analysis, outlying values may
occasionally be discovered.
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Error  Estimate: (1) The manufacturers state +/-  0.2mg/L as the  error allowance for both
SeaBird and Hydrolab oxygen sensors.

References:
Mississippi River/Gulf of Mexico Watershed  Nutrient Task force.2001. Action Plan  for
Reducing, Mitigating, and Controlling Hypoxia in the Northern Gulf of Mexico. Washington,
DC.

Rabalais  N.N.,  R.E. Turner,  Dubravko  Justic,  Quay Dortch, and  WJ.  Wiseman.   1999.
Characterization of Hypoxia.  Topic 1 Report for the Integrated assessment on Hypoxia in the
Gulf of Mexico. NOAA Coastal Ocean Program Decision Analysis Series No. 15. Silver Spring
Maryland: National Oceanic and Atmospheric Administration.

Hendee, J.C.  1994. Data management for  the nutrient enhanced coastal  ocean productivity
program. Estuaries 17:900-3

Rabalais, Nancy N., WJ. Wiseman Jr., R.E. Turner ; Comparison of continuous records of near-
bottom dissolved oxygen from the hypoxia zone of Louisiana. Estuaries 19:386-407

SEAMAP Information System http://www.gsmfc.org/sis.html
EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLANS

Wetlands

       The Agency is developing measures of wetland function.  By 2006 and each year
thereafter, EPA is committed to partnering with the Corps of Engineers (COE), states, and Tribes
to obtain no net loss hi wetland function based on quantifying functions gamed and lost through
mitigation for authorized wetlands impacts.  Although there is not yet an annual measure for this
target,  by FY 2005 EPA will  develop  performance standards guidance on monitoring and
adaptive  management of mitigation sites, in  conjunction with  COE, U.S.  Department of
Agriculture (USDA), Department of Interior (DOI), and the National Oceanic and Atmospheric
Administration (NOAA), and working with states and Tribes. In addition, by FY 2005, COE,
EPA, USDA, DOI, and NOAA will establish a shared mitigation database. (A baseline is to be
determined in FY 2006.)  Since  the effort is a joint undertaking of EPA  and  several other
partners, progress could be affected by partner actions outside the control of EPA.


COORDINATION WITH OTHER AGENCIES

National Estuary Program

       Effectively implementing successful comprehensive management plans for the estuaries
in the  NEP depends on the cooperation, involvement, and commitment of Federal and state
agency partners that have some role in protecting and/or managing those estuaries.  Common
Federal partners include NOAA, the Fish  and Wildlife Service, the Corps  of Engineers, and

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USDA.   Other partners include  State and local government agencies, universities, industry,
NGOs, and members of the public.

Wetlands

       Federal  agencies  share the  goal  of increasing wetlands functions and values, and
implementing a fair and flexible approach to wetlands regulations.

Great Lakes

       Pursuant to the mandate in Section 118 of the Clean Water Act to "coordinate action of
the Agency with the actions of other Federal agencies and state and local authorities..."  Great
Lakes National Program Office (GLNPO) is engaged in extensive coordination efforts with state,
Tribal,  and other Federal agencies, as well as with our  counterparts in Canada.  EPA has joined
with states, Tribes, and Federal agencies that have stewardship responsibilities for the Lakes in
developing a new Great Lakes  Strategy.   In  addition to the  eight Great Lakes States and
interested Tribes, partners include the Army Corps of Engineers (Corps), the Coast Guard, the
Fish and Wildlife Service (USFWS), the U.S. Office of Geological Survey, the National Oceanic
and Atmospheric Administration  (NOAA),  and the Natural Resources  Conservation  Service
(NRCS). The Strategy joins environmental protection agencies with natural resource agencies hi
pursuit of common goals.  These organizations meet semi-annually as the Great Lakes U.S.
Policy Committee to strategically plan and prioritize environmental actions. GLNPO monitoring
involves extensive  coordination  among these  partners,  both  in  terms  of implementing the
monitoring program, and in utilizing results from the monitoring  to manage  environmental
programs. GLNPO's sediments program works closely with the states and the Corps regarding
dredging  issues.    Implementation of the  Binational Toxics Strategy  involves  extensive
coordination with Great Lakes States.  GLNPO works closely  with states, Tribes, FWS, and
NRCS in addressing habitat issues in the Great Lakes.  EPA also coordinates with these partners
regarding development and implementation of Lakewide Management Plans for  each of the
Great Lakes and for Remedial Action Plans for the 31 U.S./binational  Areas of Concern.

Chesapeake Bay

       The Chesapeake Bay Program has a Federal  Agencies Committee, chaired by  EPA,
which  was formed  hi 1984 and has met regularly ever since.  There are currently over 20
different Federal agencies actively involved with the Bay Program through the Federal Agencies
Committee.  The Federal agencies have worked together over the past decade to implement the
commitments laid out in the 1994 Agreement of Federal Agencies on  Ecosystem Management in
the Chesapeake Bay and the 1998 Federal Agencies Chesapeake Ecosystem Unified Plan
(FACEUP).  In the past two years, the Federal Agencies Committee has been focusing on how its
members can help to achieve the 104 commitments contained in the Chesapeake 2000 agreement
adopted by the  Chesapeake Bay Program hi June 2000.  Through this interagency partnership
Federal agencies have contributed to some major successes, such as the U.S. Forest Service
helping to meet the year 2010 goal to restore 2,010 miles of riparian forest buffers eight years
early; the National Park Service leading the effort to restore over 500 miles of water trails three
years early; and the U.S. Fish and Wildlife Service working to try to  meet our fish passage goal
of reopening 1,357 miles of currently blocked river habitat by 2003.  Also hi 2003, through the
Federal Agencies Committee, the members  will be looking at their agency budgets and other

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programs to try to leverage maximum benefit to the state, private and Federal efforts protect and
restore the Bay.

Gulf of Mexico

       Key to the continued progress of the Gulf of Mexico Program is a broad multi-
organizational Gulf states-led partnership comprised of regional; business and industry;
agriculture; State and local government; citizens; environmental and fishery interests; and,
numerous Federal departments and agencies. This Gulf partnership is comprised of members of
the Gulf Program's Policy Review Board, subcommittees, and workgroups. Established in 1988,
the Gulf of Mexico Program is designed to assist the Gulf states and stakeholders in developing a
regional, ecosystem-based framework for restoring and protecting the Gulf of Mexico through
coordinated Gulf-wide as well as priority area-specific efforts. The Gulf states strategically
identify the key environmental issues and work at the regional, state, and local level to define,
recommend, and voluntarily implement the supporting solutions. To achieve the Program's
environmental objectives, the partnership must target specific Federal, state, local, and private
programs, processes, and financial authorities in order to leverage the resources needed to
support state and community actions.
STATUTORY AUTHORITIES

1909 The Boundary Waters Treaty
1978 Great Lakes Water Quality Agreement (GLWQA)
1987 Great Lakes Water Quality Agreement
1987 Montreal Protocol on Ozone Depleting Substances
1990 Great Lakes Critical Programs Act
1996 Habitat Agenda
1997 Canada-U.S. Great Lakes Binational Toxics Strategy
2002 Great Lakes and Lake Champlain Act
Clean Water Act
Coastal Wetlands Planning, Protection, and Restoration Act of 1990
Estuaries and Clean Waters Act of 2000
North American Wetlands Conservation Act
US-Canada Agreements
Water Resources Development Act (WRDA)
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                        Healthy Communities and Ecosystems

OBJECTIVE; Enhance Science and Research

      Through 2008,  provide a sound scientific foundation  for EPA's  goal of protecting,
sustaining, and restoring the health of people, communities, and ecosystems by conducting
leading-edge  research and  developing  a  better  understanding and  characterization  of
environmental outcomes under Goal 4.

                                Resource Summary
                                (Dollars in Thousands)

Enhance Science and Research
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
Buildings and Facilities
Inspector General
Total Workyears
FY2003
Actuals
$380,878.7
$52,443.0
$34,740.6
$286,526.2
$5,525.0
$1,643.9
1,230.8
FY2004
Pres. Bud.
$420,040.9
$61,444.1
$14,267.8
$336,318.6
$5,680.5
$2,329.9
1,230.4
FY2005
Pres. Bud.
$394,823.7
$62,016.9
$8,361.6
$316,109.2
$6,131.7
$2,204.3
1,230.0
FY 2005 Req. v.
FY 2004 Pres Bud
($25,217.2)
$572.8
($5,906.2)
($20,209.4)
$451.2
($125.6)
-0.4
                                  Program Project
                                (Dollars in Thousands)

Research: Computational Toxicology
Research: Endocrine Disrupter
Research: Global Change
Research: Human Health and Ecosystems
Research: Pesticides and Toxics
Research: Fellowships
Congressionally Mandated Projects
Homeland Security: Preparedness, Response,
and Recovery
Endocrine Disrupters
Science Policy and Biotechnology
Human Health Risk Assessment
Administrative Projects
TOTAL
FY2003
Actuals
$5,436.9
$13,161.9
$22,354.9
$163,550.7
$32,664.7
$2,040.8
$13,669.8
$30,959.2
$7,075.1
$850.2
$27,536.0
$61,578.5
$380,878.7
FY 2004
Pres. Bud.
$8,948.6
$12,984.7
$21,528.6
$190,730.8
$36,784.8
$6,402.8
$0.0
$28,999.9
$9,002.7
$1,603.8
$36,495.0
$66,559.2
$420,040.9
FY2005
Pres. Bud.
$13,028.7
$8,044.0
$20,689.6
$177,407.5
$29,017.7
$8,261.6
$0.0
$22,751.7
$9,037.3
$1,707.2
$36,832.2
$68,046.2
$394,823.7
FY 2005 Req. v.
FY 2004 Pres Bud
$4,080.1
($4,940.7)
($839.0)
($13,323.3)
($7,767.1)
$1,858.8
$0.0
($6,248.2)
$34.6
$103.4
$337.2
$1,487.0
($25,217.2)
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FY 2005 Request

Results to be Achieved under the Objective

Endocrine Disruptors

       There is increasing evidence that fish and wildlife  can be affected by chemicals that
interfere with the endocrine system resulting in abnormal development, low fertility and greater
susceptibility to disease.  The link to human disease is less clear at ambient environmental levels.
The Food Quality Protection Act of 1996 mandated that EPA test pesticides for estrogen-like
effects on human health. The Safe Drinking Water Act Amendments of 1996 authorize EPA to
similarly test contaminants found in drinking water sources to which a substantial population
may be exposed.  Given  the  scientific controversy over  the testing of chemicals for then-
endocrine disrupting effects, the Agency established the Endocrine  Disrupter Screening and
Testing Advisory Committee (EDSTAC) under the Federal Advisory Committee Act. EDSTAC
included representatives  from industry, environmental and public health groups, academia, and
Federal and state government bodies.

       On the basis  of  science, EDSTAC recommended that the screening program include
commercial chemicals and contaminants; estrogen, androgen and thyroid endpoints; and wildlife
as well as human health effects.
           Schedule for the Development and Implementation of the Endocrine
                         Disrupter Screening Program (EDSP)
                                                                  Screening
       Sorting and Priority Setting selects chemicals for screening using existing chemical data
and screening tools. This will result in publication of an initial list of chemicals to be screened in
Tierl.
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       Regulatory Implementation involves the proposal and final adoption of regulations to
implement EPA's statutory authority to require manufacturers of chemicals and registrants of
pesticides to test chemicals.

       Tier 1 Screens is a battery of in vitro and in vivo short-term screening assays that identify
chemicals having the potential to interact with the estrogen, androgen and thyroid systems.
Chemicals that screen positive in Tier 1 screening battery will be tested in Tier 2.

       Tier 2 Tests consists of multi-generation tests in mammals, birds, fish, amphibians and
invertebrates and will provide information on the adverse effects of the chemical as well as other
information needed to assess the hazard to these organisms.

       Screening  of initial list chemicals starts testing chemicals from the  sorting and priority
setting stage using the validated Tier 1 assays.

       EPA based its EDSP on the EDSTAC recommendations.  The EDSP is a two-tiered
program.  Tier 1  is  a battery  of in vitro and in vivo short-term screening assays  to identify
chemicals that have the potential  to interact with the estrogen, androgen, and thyroid systems.
Chemicals demonstrating endocrine effects in  the Tier 1 screening battery will be tested hi Tier
2. Tier 2 consists  of multi-generation tests in mammals, birds, fish, amphibians and invertebrates
and will provide information on the adverse effects of the chemical as well as other information
needed to assess the hazard to these organisms.  FQPA mandated that all assays used hi the
EDSP be validated. Validation is a science-based process and has required application of cutting
edge  science,  domestic, interagency and international cooperation, and ongoing stakeholder
involvement.

       The FQPA also mandated deadlines for the  development and  implementation  of the
EDSP. In 2001 the Natural Resources Defense Council and the EPA entered in to a Settlement
Agreement in response to a suit brought by NRDC hi which they alleged that EPA failed to meet
the 1999 statutory deadline  for program implementation.  EPA agreed to make best efforts to
validate the Tier 1 assays, publish the priority  list and implement Tier 1 screening by December
2003. Under the  terms of the  Settlement Agreement, EPA must report to NRDC every six
months when the agency anticipates missing the targets in the Settlement Agreement.

       Currently,  EPA expects to complete the validation of most of the Tier 1 screens and put
into place the procedures needed to initiate endocrine screening of specific chemicals hi 2005.

Science Policy and Biotechnology

       Crops may be bioengineered to produce a class of pesticides, called plant-incorporated
protectants (PIPs).  These bioengineered crops are capable of producing  PIPs for protection
against pests, reducing or eliminating the use of chemical pesticide application on the plant. Such
bioengineered crops are playing an ever-increasing role hi the  agricultural marketplace.  The
Federal government is committed to ensuring that  bioengineered  products, including  those
bioengineered to express PIPs, are safe for the public  and environment alike.  As with any new
technology, there is lively public and scientific  debate of the best ways to incorporate the
products into the market and the possible long-term implications for agriculture. EPA, as part of
the U.S. Federal government system of oversight, must keep abreast of new science and perform

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its traditional role of evaluating potential risks to humans and the environment for products
within its statutory purview.

       The  Plant-Incorporated Protectant  (PIP)  Rule, published  in 2001,  clarifies which
genetically modified products are subject to review under FIFRA and FFDCA.  The rule also
reaffirmed the partnership between the USDA and EPA on regulation of bioengineered crop
plants: the  PIP (the pesticidal substances) are subject to EPA authorities, while the modified
plant is regulated by USDA.  Publication of the rule ensured that genetically engineered PIPs
meet FIFRA and FFDCA safety standards.  EPA evaluates PIPs in a scientifically rigorous
manner taking into consideration any  unique  issues they present. Because pests can become
resistant to  pesticides, EPA also evaluates  and addresses the  potential  for pests to become
resistant to PIPs. EPA believes it is appropriate to evaluate and  address this concern as PIPs
generally are "reduced risk" pesticides.  In general they  affect only a very narrow range of
targeted organisms, sparing  other species that  may be incidentally exposed to  the PIP.  Thus,
PIPs  are generally considered safer for humans and the environment than many of the toxic
chemicals they replace. Should resistance to PIPs develop in pest populations, farmers may have
to again rely on more toxic chemical insecticides. There are several new PIP products coming to
the EPA for review for which decisions will likely be made hi FY 2004 and 2005.  EPA will also
continue during this time frame to develop procedures and regulations specifically tailored to the
characteristics of PIPs, improving EPA's ability to reduce pesticide risks while at the same time
streamlining procedures for developers/manufacturers.

       The bioengineering of plants so that they resist harmful insects or pathogens is likely to
attract continued public scrutiny, particularly on issues such as allergenicity and gene transfer.
EPA will continue to seek technical information from scientific experts, and input from various
stakeholders, on such issues.

       EPA is committed to enhancing the quality of the science and research used to reach its
environmental goals.   The Agency will provide a sound scientific foundation for protecting,
sustaining,  and  restoring the  health of people, communities, and ecosystems by conducting
leading-edge research and  developing a  better  understanding  and  characterization  of
environmental outcomes. To meet its objective, EPA will conduct research hi several important
areas: 1) human health and ecosystems; 2) human health risks assessments; 3) climate change; 4)
computational toxicology; 5) endocrine disrupters; and 6) pesticides and toxics.

       The  measurement-derived  databases,  models,  and protocols  developed through  the
integrated human health research program will strengthen the scientific foundation for human
health risk assessment and provide the data, tools, and protocols needed for more reliable risk
assessments, thereby improving the Agency's ability to better  understand and characterize
environmental  outcomes.   Ecosystems protection  research, which  provides  the  scientific
understanding to measure, model,  maintain, and/or restore the integrity and sustainability of
highly valued ecosystems, will focus on strengthening the scientific basis to adequately assess
and  compare risks to ecosystems, to protect and restore them, and to track progress hi terms of
ecological outcomes.  In FY 2005, the Agency will enhance efforts to integrate different scales
and types of monitoring to target effective water quality management actions and document  the
effectiveness of water quality management programs.
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       In coordination with the U.S. Climate Change Science Program (CCSP), EPA's Climate
Change Research Program79 provides the knowledge to allow policy makers to identify the most
appropriate science-based solutions reducing potential risks to human health and ecosystems
posed by climate change.  The program  focuses on assessing the potential consequences of
climate change, including climate variability and land use changes, on air quality, water quality,
ecosystem health, and human health. The Agency will also assess potential adaptation strategies
for building  resilience  to climate change,  while  responding to both potential risks  and
opportunities.

       Computational toxicology research will demonstrate how new scientific advances can be
integrated in a way that allows for more  efficient and more precise risk assessments, thereby
optimizing the cost of EPA regulations, while protecting human and ecological health. In FY
2005, EPA will build on current efforts  by accelerating the use of biornformatics and  other
computational approaches and  applying the program to address other high-priority regulatory
issues.

       EPA will continue to develop and evaluate innovative state-of-the-art testing methods for
assessing potential human health risks  of endocrine disrupting chemicals (EDCs).  These
methods will involve molecular and computational tools that can be used to prioritize chemicals
for screening and testing.

       The Agency's  fellowship programs will continue to attract the brightest and  most
dedicated students in the Nation for training in scientific and engineering disciplines critical to
the protection of public health and the environment.

       EPA's  multidisciplinary research program to examine risks  resulting from exposure to
pesticides and toxics focuses on meeting  the requirements of the Food Quality Protection Act
(FQPA). By 2008, EPA will provide scientific tools that can be used to characterize, assess, and
manage risks associated with the implementation of FQPA.  Additional research  on pesticides
and  toxics  will support the  implementation  of the  Federal  Insecticide,  Fungicide,  and
Rodenticide Act and the Toxic Substances Control Act by developing methods and models to
obtain toxicity data and assess and manage risks to toxic agents.

       EPA's Homeland Security research program is committed to providing sound science and
conducting leading edge research to help reduce the impacts of terror attacks.  This includes
developing enhanced methods  for  detecting,  containing, and decontaminating biological and
chemical agents intentionally introduced drinking water and wastewater systems. EPA will also
develop methods for safe disposal of waste materials resulting from cleanups, and methods for
conducting rapid assessments of risks to emergency response  personnel and the public from
potential homeland security threats.  These efforts will provide elected officials, decision makers,
the public, and first responders  with rapid  risk assessment protocols to quickly assess the risk to
human health and the environment from chemical and biological threats. They will also result in
more efficient and effective cleanup of water systems, and disposal of contaminants resulting
from terror attacks.
79 For more information about EPA's Climate Change Research, see http://cfJ3ub.epa.gov/gcrp/

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Research: Human Health and Ecosystems Protection

       EPA's mission is to protect public health and the natural environment.  To fulfill this dual
charge and balance environmental sustainability with the growth of human activity, the Agency
conducts core human health and ecosystems research to 1) identify and characterize, through the
process of human health risk assessment, environmentally-related human health problems, and 2)
understand the condition of ecosystems, the stressors changing that condition, the consequences
of those changes, and the consequences of preventing, mitigating, or adapting to those changes.
As a result,  this research has become integral to environmental  decision-making within the
Agency.  Emanating from these two broad areas of research are more targeted efforts, including,
but not limited to, mercury research and research for the Report on the Environment that are
critical to the fulfillment of the EPA's mission.

       The  Agency's human health research program  has five  primary areas  of focus: 1)
harmonization of cancer and non-cancer risk assessment; 2) aggregate risk  assessment; 3)
cumulative risk assessment; 4) susceptible and highly exposed life stages and subpopulations;
and 5) Evaluating the Effectiveness of Public Health Outcomes.  EPA's ecological research
program  also has  four primary areas of emphasis:   1) ecological  condition; 2) ecological
diagnosis; 3) ecological forecasting; and 4) ecological restoration. Following are more in-depth
discussions of EPA's human health and ecosystems research efforts for FY 2005.

       Human  Health Research:   There are many uncertainties  associated with the risk
assessment process because of severe limitations in available data on the complex interactions
between  the  sources and environmental concentrations of contaminants,  human  exposures to
these contaminants, and relationships between human exposure,  dose, and response.   These
uncertainties frequently result in the use of default assumptions and uncertainty factors in human
health risk assessments. EPA's human health research, guided by the Human Health Research
Strategy,™ represents the Agency's only comprehensive program to address these data limitations
and reduce reliance on default assumptions.

       Human health research is one of the highest priorities for many Agency program offices,
the  Regions,  and the states.   For example, in  order to  more effectively  implement the
requirements of FIFRA, TSCA,  and FQPA, EPA's Office of Prevention, Pesticides and Toxic
Substances (OPPTS) needs  research to provide a  scientific basis for the use of mechanistic data
in harmonized risk assessment, methods and tools  for aggregate and cumulative risk, and
research  on children and the  elderly as susceptible subpopulations.  EPA's Office of Air and
Radiation (OAR) utilizes research on methods and models for aggregate and cumulative risk to
more effectively evaluate  risk associated with exposures to particulate matter  and various air
toxics, and asthma in children, to carry out  its mandates under the Clean Air Act (CAA).

       The Office of Water  (OW), in addressing the requirements of the CWA and SDWA,
requires a sound scientific basis  for the use of mechanistic data in harmonized risk assessment
and methods to assess cumulative risks from exposure to multiple chemicals in  drinking water.
Regions and other regulatory program offices have comparable needs for- sound science to carry
out then- legislative mandates.  This  research also supports the Human Health Risk Assessments
Program/Project described later in this chapter.
80 U.S. EPA, Office of Research and Development. Human Health Research Strategy. (EPA/600/R-02/050) Washington, D.C.:
U.S. Government Printing Office. (2003)

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       Human health research is conducted by EPA researchers, and through contracts and
assistance agreements (i.e., grants and cooperative agreements).  Products resulting from this
research are  subjected to quality assurance (QA) procedures.  Research supported under the
Science  to Achieve Results (STAR)81 program is selected  for  funding through  a  rigorous
competitive external peer review process designed to ensure that only the highest quality efforts
receive funding support. (Criteria: Quality)

       This research program is supported by multiple long-range research planning documents,
including: 1) the Human Health Research Strategy; 2) the Research Strategy on Environmental
Risks to Children;82 3) the Asthma Research Strategy; 83 and 4) the Multi-Year Plan for Human
                  84
Health Research.    These long-term strategies and planning documents  guide  research  to
improve the  scientific  basis to  identify,  characterize, assess,  and manage  environmental
exposures that pose the greatest health risks to the American public, and identify clear goals and
priorities for  the program.  These documents also support performance planning and evaluation
as required by the Government Performance and Results Act (GPRA).

       Human  health  research  addresses  critical  issues  along  five  major themes:   1)
harmonization  of cancer and non-cancer risk  assessment; 2) aggregate risk  assessment;  3)
cumulative risk assessment; 4) susceptible and highly-exposed life stages and subpopulations;
and 5) evaluating the effectiveness of public health outcomes.

       Harmonization  of  cancer and  non-cancer  risk assessment:    EPA's research  on
harmonization of risk assessment approaches is designed to develop a consistent, flexible set  of
principles for using and drawing  inferences from available information on mode or mechanism
of action to support risk assessment.  Such a framework should be responsive to differences that
exist among various modes or mechanisms of toxicity and the amount of relevant toxicity data
available.  In FY 2005, research activities will develop  1) genomic/proteomic approaches that
could be combined with emerging computer approaches for EPA's Computational Toxicology
program; 2)   DNA  microarray  techniques  to  provide mechanistic data  on  high  priority
environmental  chemicals;  3) a scientific  database that will serve  as  a framework for the
consistent use of mechanistic data in cancer and non-cancer risk assessments; and 4) workshops
to integrate information from grants-supported research and  mechanistic work performed by
EPA. Research will also support development of biologically-based markers of toxicity for high
priority chemicals.  Research results will be provided to  the EPA scientific community so they
will have mechanistically-based markers that can be used in a  consistent manner for cancer and
non-cancer risks assessment.

       Aggregate  Risk  Assessment: EPA's research program on aggregate risk (i.e., sum  of
exposures to a single  chemical  or  toxicant from  multiple sources, and multiple  routes and
pathways of exposure)  is  designed to provide  improved tools (methods, models, data, and
guidance) for assessing human health risk so that the Agency can protect the health of the public
and environment more effectively.
81 For more information about EPA's Science To Achieve Results Program, see http://es.epa.gov/ncer •
82 U.S. EPA, Office of Research and Development. Strategy for Research on Environmental Risks to Children. (EPA/600/R-
00/068) Washington, D.C.: U.S. Government Printing Office. (2000)
83 U.S. EPA, Office of Research and Development. Asthma Research Strategy. (EPA/600/R-01/061) Washington, D.C.: U.S.
Government Printing Office. (2002)
84 U.S. EPA, Office of Research and Development. Human Health Research Multi Year Plan. Washington, D.C.: EPA. Accessed
January 14, 2003. Available only on the internet at: www.epa.gov/osp

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       In FY 2005, EPA will continue to generate exposure measurement and exposure factor
data and innovative methods to support the development, evaluation, and enhancement of models
of  aggregate  exposures,  dose,  and effects.   This research seeks to understand  the  key
determinants of exposure and risk, improving exposure measurement techniques, and develop
critical data on exposure and exposure factors.   The results of this research will be used to fill
data gaps and reduce reliance on numerous default assumptions that are currently used hi the risk
assessment process, which will strengthen  the scientific foundation for  human health  risk
assessment.

       Cumulative Risk Assessment:  Through  its base program and the FY 2003 Cumulative
Risk  Research Initiative,  EPA  will provide regulatory decision-makers  with  models,  risk
assessment  approaches, and guidance  that will  be used  for  conducting assessments  for
cumulative exposure and risks to pollutants that pose the greatest health risks to the American
public. This research is intended to describe how multiple chemicals or other stressors may work
together to produce an adverse effect when accumulated over multiple pathways and routes of
exposure, and over time.  Cumulative risk research will support the  Risk Assessment Forum's
effort to develop Agency guidelines for cumulative risk assessment.

       Activities for FY 2005  and beyond include: 1) developing and refining physiologically-
based pharmacokinetic  (PBPK)  models for  using exposure,  biomarker and PK data in  risk
assessments;  2) examining promising new biomarkers of exposure and effects that can be used
in future exposure and epidemiological studies,  such as the National Children's Study (NCS);
and 3)  sponsoring research that will provide a framework for structuring  evaluations  of the
toxicity of complex chemical mixtures for use in  human and environmental health assessments.

       Susceptible and Highly-Exposed Life  Stages and Subpopulations: EPA is committed to
obtaining data and developing and verifying  innovative methods and models  to support
assessment of the susceptibilities of sub-populations to environmental  agents.

       The Agency's long-term goal hi this area is to demonstrate why some groups of people,
defined by life stage,  genetic factors,  and health  status, are more  vulnerable than others to
adverse effects from exposure to environmental agents. The Agency's core research program on
the vulnerabilities associated with children's age and developmental life stages was expanded
through initiatives in 1998 and 2000  on  children's environmental  health.  In the FY 2004
President's Budget, EPA launched  its National Aging Initiative with the purpose of examining
and prioritizing environmental health threats to older persons.  This  research produces  the
fundamental tools that are then  used to support the  FQPA and the  Safe Drinking Water Act
(SDWA), which require that the Agency consider  children and other potentially  susceptible
groups when setting health-based standards.

       In FY 2005, research on susceptible subpopulations will continue to provide the scientific
support for conducting risk assessments that consider  the vulnerabilities of susceptible and
highly exposed life  stages and subpopulations.  This  research will  focus on developing a
scientific understanding of the reasons for differences  in exposure and response of selected
groups, by age and developmental stage, within the general population.  The research is
organized into three broad science themes: life stage, genetic background, and health status.
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       Important research efforts for FY 2005 include:

•      evaluate  community-based approaches to risk reduction that are  being tested in the
       Children's Centers of Excellence in Environmental Health and Disease Prevention;
•      provide validated tools  for characterizing  real world risks  to  young children  and
       adolescents participating in the National Children's Study;
•      identify modes of action by which specific groups of chemicals/pesticides increase cancer
       or non-cancer health risks as a function of life stage;
•      develop the necessary tools and models to  characterize  and conduct field studies on
       exposures to high-priority environmental chemicals in the elderly;
•      examine effect of pre-existing respiratory disease (e.g., asthma, bronchitis) on response to
       air pollutants;
•      develop the necessary tools and models to  characterize  and conduct field studies on
       exposures to high-priority environmental chemicals in adolescents.

       EPA will also continue targeted studies focusing on children's health.  Research  will
examine children's aggregate and cumulative exposure research results from the past five years
(FY 2000-05) and will statistically analyze this data hi support of the above referenced FY 2006
FQPA mandate.  Remaining critical children's aggregate exposure issues will also be identified,
and targeted research studies will be conducted through FY 2007  to address these issues and
generate the critical exposure and exposure factor data needed to reduce risk assessors' reliance
on default assumptions.  Finally, EPA is working with OPPTS and OAR under the "Buy Clean"
program to provide guidance to school systems and other  interested stakeholders on emissions
from products used in schools.

       Evaluating  the Effectiveness of Public Health  Outcomes:    In  FY  2005, EPA  will
continue its efforts to evaluate the  effectiveness of risk management options hi producing
positive public health outcomes.  This research will provide the scientific understanding and
tools to develop  a framework to assist the Agency and partners in evaluating the effectiveness of
risk management options in terms of public health outcomes.  Much of the work will consist of
an integrated effort to build collaborations with and  linkages to other Federal agencies, such as
the Centers  for Disease  Control and  Prevention  (CDC)  and  the National Institute of
Environmental Health Sciences (NIEHS), to identify data bases and indicators that can be used
to assess environmental decisions hi public health  terms.  This research will provide crucial
information for the Agency's Report on the Environment.

       Ecosystem Research:  The nation's ecosystems provide valuable services to the public,
such as air and water purification, flood control, food, and raw materials for industrial processes,
as well as multiple recreational benefits. Many human activities alter or damage ecosystems and
their ability to provide these goods and services. To balance environmental sustainability with
the growth of human activity, it is important to understand the condition of ecosystems,  the
stressors changing that condition, the consequences  of those changes, and the consequences of
preventing, mitigating,  or  adapting to those  changes.   EPA's  ecological research  program
addresses these concerns, and has four primary areas of emphasis: 1) ecological condition; 2)
ecological diagnosis; 3) ecological forecasting and 4) ecological restoration.

       EPA's Ecological Research program was evaluated for the FY 2005 President's Budget
using the Administration's Program Assessment Rating Tool (PART).  The Agency is committed

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to addressing the findings in the PART,  such as developing long-term outcome-oriented and
annual performance measures, and annual efficiency measures.

       Ecological Condition Research:  EPA's ecological condition research efforts consist, in
large part, of the various components of the Environmental Monitoring and Assessment Program
(EMAP), which focuses on monitoring science required to develop EPA's capability to measure
trends hi freshwater and marine ecosystem health. The EMAP research efforts are guided by the
EMAP Research Strategy, published in 2002.85  Major efforts under EMAP include the National
Coastal Assessment (NCA), Western EMAP, the Central Basin Integrated Assessment, work hi
landscape ecology, and programs to develop and refine environmental indicators.

       Under the National  Coastal Assessment  program, EPA is partnering with 24  marine
coastal states and Puerto Rico, the  U.S. Geological Survey (USGS), and the National Oceanic
and Atmospheric Administration  (NOAA) to conduct sampling of estuaries using probabilistic
methods.  As a result of this effort, the  condition of near-shore coastal environments in the
Western continental U.S. is being assessed. This effort will continue in FY 2005 to complement
EPA's ongoing work to improve beach monitoring in support of the Clean Water Act (sections
403(c),  301(h), and  316 (a) and  (b)).  As EPA completes the initial phase of the NCA, the
Agency will have sufficient information on selected estuaries to begin examining changes and,
subsequently, trends in condition. In 2008, there will be sufficient data on estuaries sampled in
the earlier years of EMAP to evaluate the power of the survey design for these systems to detect
changes hi condition and trends.  Preliminary data will be reported in the FY 2005 National
Estuarine Program report.

       The Western EMAP (a.k.a.  Western Pilot) study will continue as a primary activity of
EPA's monitoring research. This study has four areas of emphasis: 1) the landscape atlas for
western states;  2) intensive study of three watersheds (Columbia River basin, Missouri River
basin, and San Francisco Bay region); 3) Pacific coast monitoring; and 4) a western-wide stream
survey. The results from the Western Pilot, National Coastal Assessment and FY 2005 wetlands
reporting  efforts will be used to guide the development of monitoring frameworks for other
aquatic ecosystems.86  These programs will  provide  water resources managers with the  tools
necessary to identify status and trends hi the condition of the nation's streams and estuaries and
to assess the impacts of management decisions. These projects will also support development of
a framework of science and technology for sustainability, addressing issues of geographic and
temporal scale, stocks and flows of materials, system vulnerability and resilience, and the role of
information.

       EPA is also refining and extending the  EMAP approach of working in partnership with
states and tribes to determine the condition of their surface waters, including large rivers hi the
Mississippi River Basin (the Central Basin). Rivers of the Central Basin are challenged by long-
term loadings  of nutrients, sediments,  and toxic chemicals as well  as  extensive  habitat
alterations. The resulting inputs to  the Gulf of Mexico are a significant contributor to causes of
hypoxia, loss of wildlife habitat,  and water quality concerns.  In  addition, there are important
85 U.S. EPA, Office of Research and Development. Environmental Monitoring Assessment Program: Research Strategy.
Washington, D.C.: U.S. Government Printing Office. EPA 620-R-02-002. (2002). Available through the internet:
http://www.epa.gov/emap/html/pubs/docs/resdocs/resstrat02.html
86 U.S. EPA, Office of Research and Development, Office of Water. National Coastal Condition Report. Washington, D.C.: U.S.
Government Printing Office. EPA 620-R-01-005. (2001). Available through the internet:
http://www.epa.gov/owow/oceans/nccr/chapters/cwapcover.pdf

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scientific linkages between the Central Basin research and proposed watershed mitigation and
management efforts. The health of these large rivers is linked to the conditions of small streams,
and ultimately their watersheds. Determining the condition of large rivers and understanding the
processes occurring in the watersheds will be important for diagnosing the causes of impaired
conditions in these river systems. In FY 2005, research will continue to develop a sampling and
analysis design to monitor ecological condition of the Missouri, upper Mississippi, and Ohio
Rivers.

       Research  in FY  2005 will  also provide technical guidance  for implementing  and
evaluating projects to restore  riparian zones, which are critical, landscape components  for the
restoration of  aquatic ecosystems and water quality.  Landscape ecology research in FY 2005
will continue to focus on improving estimates on the effects of land-based stressors on aquatic,
estuarine, wetland,  terrestrial, and  landscape conditions.   This  work extends the  EMAP
probability  sampling design to estimate  conditions of ecological resources across the West
through the application of spatially-distributed models.   Landscape  characterization research
includes:  1) planning and  generating land  characteristic databases for determining  current
conditions and (change land cover and other spatial databases); 2) continuing remote sensing
research and developing high resolution imagery applications to document changes in land cover
over time; and 3) quantifying relationships between landscape metrics and specific parameters.
This research  will significantly improve EPA's ecological monitoring and assessments, as well
as risk management decisions, and will reduce uncertainty in other high priority research
programs.  The Landscape Sciences Program is contributing a national assessment of riparian
habitat conditions to the Committee on Environment and Natural Resources'  (CENR) National
Environmental Report.  This report will fit into the framework for conducting  a national
landscape assessment by the year 2008.

       Environmental  indicators  research in  FY 2005  will  continue to  focus  on:  1) the
development of the next generation of biological  indicators to characterize ecosystem condition
and diagnose  exposure to  specific  stressors;  2) the application  of these  indicators  to the
monitoring  of aquatic ecosystems; and 3) the interpretation of the indicators hi ecological risk
assessments.  Ecological indicators, including genetic and landscape,  will be developed and
evaluated using EPA's Indicator Guidelines.87  Also, prototype indicators of condition for deep
river  fish and population  genetics data  will be developed, which are  unique  to  ecological
integrity studies.  This will provide inherent measures of population fitness and sustainability,
which can be associated with historic or anthropogenic stresses.

       Products of EMAP research conducted  by EPA researchers, and through contracts and
cooperative agreements are subjected to quality  assurance (QA) procedures. EMAP has had
more than 25  separate peer reviews of individual program components (over  the last 10 years).
The EPA Science Advisory Board has also reviewed several aspects of EMAP, paying particular
attention to the development of indicators and the integration and assessment activities within the
program. (Criteria: Quality)

       By integrating EMAP activities described herein with the monitoring and research
activities  of other agencies, specifically through  the efforts of the twelve federal partners that
comprise the National Environmental Monitoring Initiative, EPA can begin to assess the status of
87 U.S. EPA, Office of Research and Development. Evaluation Guidelines For Ecological Indicators. Washington, D.C.: U.S.
Government Printing Office. EPA 620-R-99-005. (2000)

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resources and their multiple uses  in the context of entire ecosystems.  A fully integrated and
coordinated network can provide  a better understanding of our environmental resources and
produce greater cost-effectiveness, while continuing to meet individual agency missions.
(Criteria:  Relevance)

       A major component of this  research is the development of techniques for the assessment
of condition at  regional  scales. Progress is evident  in the  successful  application of these
techniques in the Mid-Atlantic  and adoption by states, and in current work on  the National
Coastal Assessment (NCA) and the Western Pilot.  In the Mid-Atlantic, for example, a decade of
work has produced such landmark reports as an Ecological Assessment of the United States Mid-
Atlantic Region:  A Landscape Atlas,88 The Condition of the  Mid-Atlantic Estuaries,89 From the
                                                                       on
Mountains  to  the  Sea; the State of Maryland's Freshwater  Streams,    and  Mid-Atlantic
Highlands Stream Assessment.91 Research in this area will  focus on a region-wide ecological
assessment of the Mid-Atlantic hi  cooperation with Region 3.  The National  Coastal Condition
Report provides an assessment of historical conditions of many of the nation's  estuaries and is an
important baseline for the NCA Program. (Criteria: Performance)

       Ecological  Diagnosis  Research:   Diagnosis  research  (i.e., process  and  modeling)
addresses biological, chemical, and physical processes affecting the condition  of ecosystems and
their responses to stressors. This research allows for predictions of future landscapes,  stressor
patterns,  ambient conditions,  and receptor responses.  Predicting the impact  of changes in
conditions enables resource managers to  address problems  in ways  that will more effectively
achieve their environmental protection goals. By providing a better understanding of risks to
ecosystem resources, processes, and services supporting human health and welfare, this research
will help provide better and more ecologically  sustainable choices by environmental decision
makers.

       Since measurements are not  feasible in every  watershed because of cost and other
practical constraints, landscape  indicators offer an efficient means to detect change, measure
watershed level  stressors, and quantify relationships  between landscape  metrics  and  specific
parameters.  A new generation  of wall-to-wall  spatial data (e.g., Multi-Resolution Landscape
Characterization  land cover data  and North American Landscape Characterization historical
landscape data),  and advances in  geographic information systems (GIS)  make it possible for
local, state, and Federal  mangers to diagnose causes and forecast future conditions to protect and
restore valued ecosystems more  effectively. Diagnosis and forecasting models developed in this
objective are being successfully  applied to  provide a better scientific  basis  for ecosystem
protection and restoration, and provide  important support for a number of programs (e.g.,
nitrogen and mercury control, Total Maximum Daily Load (TMDL), pesticide registration, and
Hazardous Waste Identification Rule (HWIR)).
  U.S. EPA, Office of Research and Development. An Ecological Assessment of the United States Mid-Atlantic Region: A
Landscape Atlas. Washington, D.C.: U.S. Government Printing Office. EPA/600/R-97/130. (1997):
6 U.S. EPA, Office of Research and Development. The Condition of the Mid-Atlantic Estuaries. Washington, D.C.: U.S.
Government Printing Office. EPA/600/R-98/147. (1998).
90 U.S. EPA, Office of Research and Development. From the Mountains to the Sea, The State of Maryland's
Freshwater Streams. Washington, D.C.: U.S. Government Printing Office. EPA/903/R-99/023. (1999).
91 U.S. EPA, Region 3. Mid-Atlantic Highlands Stream Assessment. EPA/903/R/00/015. (2000). Available through the internet:
http://www.epa.gov/maia/pdfiMAHAStreams.pdf

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       EPA will also continue to conduct research to address the effects of excess nitrogen from
atmospheric or other sources and aquatic ecosystems in FY 2005, including the development of
models that  predict the loading-response relationships for nitrogen in aquatic habitats and
improved knowledge  of  the  biogeochemical processes  controlling  nutrient processes  in
watersheds.   Such models can be used for stressor source apportionment and for the assessment
of management and mitigation  strategies. In addition, deposition of nitrogen, along with other
atmospheric  stressors such as  sulfur, will be  monitored throughout the northeastern  U.S.  to
continue to evaluate the effectiveness of existing regulations on control of the major constituents
of acid rain and the recovery of impacted streams, rivers, and lakes.  Additional research in FY
2005 will include investigation into the fate, behavior, and effects of natural organic nitrogen and
controls on the mobility and availability of phosphorous.

       Other ecological process and modeling research will continue to develop approaches for
evaluating  relative risks  from chemical  and non-chemical stressors on fish  and  wildlife
populations  across large areas or regions.  Research in this area will  improve the ability  to
perform retrospective (diagnostic) and prospective (forecasting) assessments of risks to animal
and plant life as determined by the spatial distribution of habitat quality and stressors (e.g., toxic
chemicals, nutrients, disease, and invasive species) in the  landscape.  Research results will  be
used to describe habitat requirements for wildlife and  to manage watersheds  to achieve and
maintain desired ecological conditions, using biological indicators and metrics to determine the
condition of aquatic ecosystems.  Research in FY 2005 involves improving the environmental
manager's  ability to implement new,  more efficient methods  for  stressor identification and
characterization.   A report will be  produced  on the  development of molecular indicators  of
exposure to detect biologically relevant exposures to invertebrate organisms.  Also, the level 1
Causal Analysis  and Diagnosis Decision Information System (CADDIS) will continue to  be
utilized in these efforts.92  This research supports  the Administration's priority for Networking
and Information Technology Research and Development.

       Ecological Forecasting Research:   EPA's ecological forecasting research  (i.e., risk
assessment) addresses the risk posed to ecosystems by stressors, alone and in combination, now
and in the future.  Ecological assessments will link stressors with consequences and evaluate the
potential for damage to particular ecosystems, and will be used to compare the relative risks
associated with different stressors, regional areas, and ecosystems. This research develops tools
to enable environmental risk managers at local,  state, and Federal levels to identify priority
sensitive ecosystems.

       The Regional Vulnerability Assessment (ReVA) project, begun in FY 2000, will continue
to combine modeled projections of changes  in  stressors  (e.g., pollution deposition, land use
change)  with  information on  sensitive ecosystems  in  order to identify:  1) the  greatest
environmental risks likely  to arise in the next 5-25 years, and 2) where those risks are likely to
occur.  The ReVA project continues to show  that invasive species are major  stressors  on
ecological resources and will pose significant  threats  in the future.  Successful rapid response
requires both early detection of new invaders and a prediction of their spread based on patterns
of invasion (e.g.,  shipping) and the inherent vulnerability of different ecosystems to invasion.  To
date, monitoring for water quality (e.g., 305b Clean Water  Act), early detection of invasive
species, predicting the spread of invasive species, and predicting the vulnerability of ecosystems
92 U.S. EPA, Office of Research and Development. Summary Report for the Workshop on the Causal Analysis and Diagnosis
Decision Information System (CADDIS). Washington, D.C.: U.S. Government Printing Office. EPA/600/R/02/078. (2002).

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to invasions have largely been independent activities.  The overall goal of this research is to
develop  integrated methods of detecting  and predicting the  spread  of new invasive species
introduced into  the  Great Lakes.   Achieving  this goal  will require  coordination among
researchers in several different fields, as well as Federal,  state, and local regulatory agencies, and
NGOs.

       Ecological Restoration Research: In FY 2005, EPA will continue to focus on the options
available to manage the risks to, and restoration of, degraded ecosystems. The growth rate of the
man-made environment necessitates development  of cost-effective  prevention, control, and
remediation approaches for sources of stressors and adaptation approaches  for  ecosystems.
These technologies  will  diagnose  ecosystem  restoration  needs, evaluate  progress toward
restoration, and establish ecologically relevant goals and decision support systems for state and
community planners. EPA is developing integrated restoration technologies which focus on: 1)
rehabilitating, to the extent possible, the structure of watershed ecosystems  (e.g., restoring
riparian zones); 2) reducing perceived stressors (e.g., cleaning up contaminated sediments); and
3) enhancing the natural resilience of the  system.  EPA is also developing tools to assess the
progress, effectiveness,  and  cost  of  candidate  restoration  technologies,  including  the
development of  methods  for evaluating  negative  or unexpected impacts of the restoration
technology.  Utilizing this research, local, state and Federal mangers will protect and restore
aquatic ecosystems using scientifically defensible methods.  This research will be incorporated
into restoration protocols to allow more uniform approaches to determining effectiveness and
cost, which will relate to potential results hi public benefits. (Criteria: Relevance)

       Mercury Research: Mercury is released from a variety of sources, exhibits a complicated
chemistry, and proceeds via several different pathways  to humans and wildlife.  After release,
mercury undergoes complicated transformations that can result in highly toxic methylmercury,
an organic form of mercury that bioaccumulates in  fish  and animal tissue.  Methylmercury is a
persistent compound posing risks  of neurological  and  reproductive  problems for human and
wildlife, and therefore is a pollutant of considerable concern.

                                                    93
       The  1997 Mercury Study Report  to  Congress   described the magnitude of mercury
emissions hi the United States, identified mercury emission sources, and assessed the health and
environmental  implications of those emissions.  In the  report, EPA concluded that a plausible
link exists between human activities that release mercury from industrial and combustion sources
hi the United States and methylmercury concentrations hi humans and wildlife. While power
generation facilities collectively are the largest remaining source of  mercury emissions to the
atmosphere, there are great uncertainties associated  with understanding the fate and transport of
atmospheric mercury and  how to most  efficiently manage this pollutant  while simultaneously
meeting  significant reduction targets for other pollutants.

       EPA  has  developed a Mercury  Research Multi Year  Plan (MYP)94, which identifies
research efforts  to be conducted over an eight-year time frame and  addresses the elements of
93 U.S. EPA, Mercury Study Report to Congress Volume I- VIII. (EPA-45/R-97-003 through EPA-452/R-97-010). Washington
D.C.: U.S. Government Printing Office. (1997) Available: http://www.epa.gov/oar/mercuiy.html
94 U.S. EPA, Office of Research and Development. Mercury Research Multi-Year Plan. Washington DC:EPA. Accessed January
14,2004. Available only on the internet at: www.epa.gov/osp/myp.

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                                                                95
the Agency's externally peer-reviewed Mercury Research Strategy  .  The MYP reflects the
Agency's research needs concerning mercury sources, control and treatment, environmental fate
and behavior, impacts on ecological resources, and potential effects on human health.  The
research strategy and  MYP  for mercury reflect EPA's ongoing commitment to design and
conduct relevant research that includes providing results reflective of clear goals and priorities
developed with input from customers. (Criteria: Relevance)

       The Mercury MYP has two long-term goals:   1) reduce and prevent release of mercury
into the environment and 2)  understand the transport and fate  of mercury from release to the
receptor and its effects on the receptor. The major emphasis of the mercury research program is
the control of utility emissions, because utilities represent the most significant source (in regards
to magnitude) of mercury release  to the atmosphere in the United States.   Controlling and
reducing these emissions requires risk management tools, including the development of technical
information and data on the cost and performance of control options (e.g., flue gas treatment).

       Research efforts in FY 2005 will continue the Agency's FY 2004 Clear Skies Research
Initiative to  identify where  emerging control technologies  and continuous  measurement  of
mercury combustion sources can facilitate or optimize mercury emissions reduction. In addition,
work will continue as  part of this  initiative to develop a method to measure dry deposition of
mercury to support future  deployment in routine networks to  assess the impact of emissions
reductions over time.  This research will also support the recent Utility Mercury Reductions
proposal signed by Administrator  Leavitt on December 15, 2003.  This proposal will control
emissions of mercury and other hazardous air pollutants from power plants through  emissions
trading and would cap  power plant mercury emissions at 15 tons in 2018, down from  48 tons in
1999.

       Other important research efforts include characterizing  mercury effects on  ecological
receptors. The presence of mercury hi freshwater fish, particularly predator fish higher hi the
food chain, is the most frequent basis for state fish advisories.   Human health assessments are
planned that  will provide answers to some of the questions that were raised while setting and
evaluating the current reference dose (RfD) for methylmercury  .  These  assessments will
address the relationship between maternal and cord blood levels of mercury and explore the
potential adverse effects of methylmercury on cardiovascular function.  This work will serve as
background and prepare the  Agency for a reevaluation of the RfD for methylmercury hi FY
2009.  Other Agency  priorities and regulatory issues that will directly  benefit from mercury
research over the next  five to ten years include: MACT rules for chlorine production, municipal
solid waste  landfills, and commercial boilers; the  Urban Air  Toxics strategy; wildlife  water
quality criterion; Total Maximum Daily Load (TMDL) development; and revised Land Disposal
Restrictions (LDRs) for mercury-bearing hazardous wastes.

       Report on  the  Environment (ROE):   This work strategically moves  EPA beyond  its
historic reliance on indicators of reduction hi exposures  (e.g., decreased ah", water, or blood and
urine concentrations; decreased emissions/discharges; increased facilities in compliance) to more
direct outcome measures (e.g., unproved ecological conditions, reduced illness  and disease).
95 U.S. EPA, Office of Research and Development. Mercury Research Strategy' (EPA/600/R-0/073) Washington D.C.: U.S.
Government Printing Office. (2000)
96 National Research Council (NRC). Toxicological Effects of Methyl mercury. Washington D.C: National Academy Press.
(2000)

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The Agency is committed to the identification, development, and application of a new generation
of indicators that will extend EPA's ability to assess environmental progress. Indicator research
played a pivotal role hi the formulation and preparation of the first EPA ROE.  In FY 2005, EPA
will continue to revise and update the technical report on the state of environmental indicators,
which will provide the scientific basis for the FY 2005 report.  The Ecological Research MYP
includes information on goals, priorities, and  schedules related to the ROE Report.  (Criteria:
Relevance & Performance)

       Exploratory Grants Research:  In FY 2005, the Exploratory Grants research program will
announce an annual solicitation  for research proposals  hi  areas where  significant gaps hi
scientific  knowledge  and understanding exist.   This program provides  opportunities for
individual investigators from the academic research community to conceive, define, and propose
research projects.  This program supports open, investigator-initiated projects that apply novel
and highly innovative approaches to  address environmental  issues.   It is  EPA's longest
established program devoted to addressing emerging environmental issues hi a substantive way.
Panels  of external researchers  competitively review the  proposals,  with  only the  most
scientifically sound proposals ultimately receiving support. (Criteria: Quality & Relevance)

         In April of 2003, the National Research Council of the National Academy of Sciences
(NAS) issued a report on EPA's Science To Achieve Results (STAR) program, which indicated,
"The committee encourages the STAR program to continue funding research that explores future
environmental problems within its overall research  portfolio.   Research devoted to potential
environmental threats may help to avoid or reduce the impact  of such threats or at the very least
                                                       97
put into place  the scientific capacity to address them."     Exploratory grants research will
include the area of nanotechnology, which is one of the Administration's six  science and
technology priorities for Federal investment.

       EPA Science Advisor: In FY 2005, EPA will continue to  support  the EPA Science
Advisor.  The Science Advisor will be responsible for ensuring the availability and use of the
best science to support Agency policies  and decisions, as well as advising the EPA Administrator
on science and technology issues and their relationship to Agency policies, procedures, and
decisions.  The Science Advisor's office will continue to promote effective partnerships with
EPA programs  and regions, assist them hi their efforts to strengthen environmental science, and
provide for timely and open communication on critical science matters.

       Implementing Information  Quality  Guidelines:   In  October 2002,  EPA  released its
Guidelines for Ensuring and Maximizing the Quality,  Objectivity, Utility and Integrity of
Information Disseminated by the Environmental Protection Agency?*  These guidelines  were
developed hi response to guidelines issued by the Office of Management and Budget pursuant to
the Data Quality Act. EPA's guidelines present the  Agency's procedures for ensuring that the
information we disseminate is of high quality.  The guidelines also provide the public an
opportunity to request correction of information.  EPA's Guidelines are based on the  Agency's
existing Quality System, as well as its Peer Review and Risk Characterization policies.
97 National Research Council of the National Academies. The Measure of STAR: Review of the U.S. EPA's Science to Achieve
Results (STAR) Research Grants Progi-am. Washington D.C.: National Academies Press. (2003)
98 U.S. EPA, Office of Research and Development. Guidelines for Ensuring and Maximizing the Quality, Objectivity, Utility,
and Integrity of Information Disseminated by the Environmental Protection Agency. Washington, D.C.: EPA. Accessed January
14, 2003. Available only on the internet at: http://www.epa.gov/oei/qualityguidelines/

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       While the Agency has extensive procedures in place to ensure that the information  it
disseminates meets high standards for quality, objectivity, and integrity, further actions will be
taken to ensure that  such information is current and fully complies with the guidelines.   For
example, the Agency will update some of its scientific and technical products, such as Integrated
Research Information System (IRIS) assessments, to respond to requests  for correction. In its
first year  of implementing  the Guidelines, the  Agency  has received requests  to correct
assessments of two chemicals (Barium  and Bromate) contained in the IRIS database.  In  both
cases, the petitioner calls attention to new  or additional information.  The Agency expects that
more correction requests are forthcoming.

       As noted hi a recent study on EPA regional use  of science hi decision-making, there is a
need to enhance the  capability of regional  offices  to conduct peer  review.    The study
acknowledged that funding is needed to support greater peer review of the regions' major science
products and that a mechanism is needed to identify independent, expert  reviewers  hi a timely
fashion to  enhance the use of science  in  regional decisions.    In FY 2005,  the Agency will
establish an extramural mechanism to assist Regions in identifying external peer reviewers and
securing their advice  and assistance.

       Research: Climate Change: In 2002, President Bush established the U.S. Climate Change
Science Program (CCSP) as part of a new cabinet-level management structure to oversee public
investments in climate  change science.  The CCSP, which incorporates the U.S. Global Change
Research Program (USGCRP)  and the  Climate Change Research Initiative established by the
President in  2001, coordinates  and integrates scientific research on global change and climate
change sponsored by  13  participating  departments and agencies  of the U.S.  Government,
including the EPA99.  All planning and activities in EPA's Climate Change Research program
are coordinated with the CCSP and NOAA.

       In 2003, the Climate Change Science Program prepared and released a Strategic Plan for
the  Climate  Change Science Program in response to the  President's direction  to accelerate
climate change research activities in order to provide the best possible scientific information to
support public discussion and  decision-making on climate-related issues100.   In  FY  2005, in
coordination with the  CCSP Strategic Plan (Criteria: Relevance),  the Agency will  continue
research and assessment activities of the potential effects of global change on air quality, water

quality,  human  health, and ecosystems, focusing on  those issues for which the Agency has
specific expertise and the necessary statutory authority.

       EPA's Climate Change Research Program's draft Research  Strategy1®1 and the Multi-
Year Plan  (MYP)102  guide the  Agency's climate change research  and assessment efforts.   The
Research Strategy has been externally peer reviewed, and final editorial changes are being made
99 Climate Change Science Program and the Subcommittee on Global Change Research. Our Changing Planet. Fiscal Year
2003. Accessed December 14, 2003. Available on the Internet: http://www.usgcrp.gov/usgcrp/Library/ocp2003.pdf
100 Climate Change Science Program and the Subcommittee on Global Change Research. Strategic-Plan for the U.S. Climate
Change Science Program. Accessed December 12, 2003. Available on the Internet:

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to ensure its complete consistency with the CCSP Strategic Plan.  The MYP, which provides
more detailed information about the implementation of the program described in the Research
Strategy, is a more dynamic document, adapting to evolving research results to ensure that the
research conducted is relevant to EPA's mission and the greatest research needs of the scientific
and stakeholder communities.  (Criteria: Relevance).   The Agency will coordinate all research
and assessment activities in FY 2005 with the CCSP Strategic Plan and through interagency
working groups convened by the CCSP. (Criteria: Relevance).

       Ecosystems-related work will evaluate the potential effects of global change  on aquatic
ecosystems including coral reefs.  Assessing aquatic ecosystems capitalizes  on the extensive
EPA experience in this area and acknowledges the important influences of terrestrial ecosystems
and land use change alongside the impacts of climate change.  The Agency  will complete an
assessment of the potential impacts of climate change on goods and services provided by aquatic
ecosystems in the San Francisco Bay Basin and Watershed in  FY 2005, as well as an initial
synthesis of the scientific literature  on the effects of climate  variability and change  on the
potential future  distribution of nonindigenous invasive  species, arid consequent impacts  on
aquatic ecosystem health. (Criteria: Performance).

       Other efforts  will develop models and methodologies  for  analyzing  the potential
consequences  of global  change  on  regional  air  quality,  including tropospheric  ozone  and
particulate matter concentrations, to inform air quality managers and other decision makers about
how global climate change and future technology changes could influence ambient air quality.
The aim is to better characterize the changes in regional emissions and atmospheric composition.
This work will be done hi collaboration with NASA, with the NSF-sponsored National Center
for Atmospheric Research (NCAR), and with NOAA.

       Research on  the potential effects of global change on  water quality will continue to
support understanding the impacts on pollutants and pathogens in surface and ground waters.
These changes could have ramifications for aquatic ecosystems, human recreational uses, and
drinking water.  EPA will explore the implications of global  change for public drinking water
systems and wastewater treatment facilities.

Research: Pesticides and Toxics

       EPA conducts a  multidisciplinary research program  to  examine risks resulting  from
exposure to pesticides and toxics.  The program is designed to meet the requirements of the Food
Quality Protection Act (FQPA)103 and support the Agency's efforts to reduce current and future
risk to the environment by preventing or controlling the production of new chemicals that pose
unreasonable risk, as well as assessing the risks of chemicals already in commerce (under Toxic
Substances Control Act - TSCA104 -  and Federal Fungicide, Insecticide and Rodenticide Act -
FIFRA).105

       The  research conducted  under this objective  provides direct  support to EPA in
implementing the requirements of these statutes.  The program is guided by multiple  EPA long-
103 Food Quality Protection Act of 1996, Pub. L. No. 104-70, Section 405.
104 Toxic Substances Control Act of 1976, Title 15, Chapter 53, Section 2609
105 Federal Fungicide, Insecticide and Rodenticide Act of 1972, Title 7, Chapter 6, Section 136r

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range strategies and  plans, including the Safe  Food  Multi-Year Plan (MYP),  106 the Safe
Pesticides/Safe Products MYP, 107 the  Human  Health Research Strategy, the  Strategy for
Research on Environmental Risks to Children, and the Ecological Research Strategy. (Criteria:
Relevance) EPA's research and regulatory programs collaborate on a regular basis to identify
future research topics of highest priority.

       Safe Food:  EPA's Safe Food Research program supports efforts to conduct aggregate
(sum of exposures to the same chemical from multiple sources and multiple routes  of exposure)
and cumukuive (sum of exposures from chemicals with a common mode of action) risk exposure
assessments and tolerance (allowable levels) assessments on pesticides.  Improved assessments
will result in better decisions to protect the public from  the consumption of unacceptable levels
of pesticides on processed and unprocessed foods.

       In FY  2005, the Agency will continue to conduct research under four broad themes to
meet the requirements of FQPA:  1) evaluate aggregate risks; 2) evaluate cumulative risks; 3)
apply  10X  safety  factors  to  protect children and other sensitive  populations;  and  4)  use
physiologically-based pharmacokinetic (PBPK) data and models to refine risk assessments and
decisions regarding pesticide safety.  However, to better coordinate research activities, EPA will
realign major  components  of food safety research under the human health research program.
More specifically, health effects and exposure research will be consolidated under the human
health program, as well as extramural research under the  STAR program.

       Risk management research, which will remain in the Safe Food program in FY 2005, will
continue to  develop standard protocols for assessing treatment effects on pesticide residues in
drinking water, and testing the efficiency of drinking water treatment systems and the formation
of by-products  for pesticide  classes of high  priority  (non-Candidate  Contaminant List).
Information collected from these protocols will be used hi aggregate and cumulative exposure
assessments. The first phase of a drinking water protocol to be used by pesticide manufactures
will be completed in FY 2005.

       Safe Pesticides/Safe Products Research: Protecting human health and the environment
from harmful agents carries the challenge of developing the capability to assess hundreds of
possible hazardous effects for tens-of-thousands of important commercial chemicals.
Establishing strategic priorities to focus available resources on chemicals that pose the greatest
potential risks  is essentialto EPA in minimizing risks from harmful agents.  Over the past three
decades, EPA has developed an extensive arsenal of test methods for regulatory risk  assessment.
In FY 2005, the Safe Pesticides/Safe Products research program will continue to refine many of
these methods to reduce uncertainty with respect to interpreting the results of tests in EPA
decisions. The program will also address the greater challenge of developing the science
necessary for EPA to know when and how to apply those test methods to gain maximum insight
into the potential risks of a specific chemical.

       EPA's  Safe Pesticides/Safe Products research program improves the efficiency of testing
by developing spatially explicit, geographically based probabilistic risk assessment methods for
106 U.S. EPA, Office of Research and Development. Safe Food Multi Year Plan. Washington, D.C.: EPA. Accessed January 14,
2003. Available only on the internet at: www.epa.gov/osp
107 U.S. EPA, Office of Research and Development. Safe Pesticides/Safe Products Multi Year Plan. Washington, D.C.: EPA.
       Accessed January 14, 2003. Available only on the internet at: www.epa.gov/osp.

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ecological risks, by developing the basis to assess the risks of plant-incorporated protectants
(PIPs), and by developing ways to evaluate the safety of newly discovered or novel hazards.

       To further the development of a scientific foundation for probabilistic risk assessment
methods for wildlife populations, in FY 2005 the research program will include surrogate test
species in the Interspecies Correlation Estimations (ICE) model, which will be used to estimate
toxic effects  on endangered  species, and provide an upgraded Pesticide Root Zone (PRZM)
model for use in characterizing ecological risks.

       EPA is continuing  to build on research  launched under the  FY 2003 Biotechnology
Initiative focusing on plant-incorporated protectant crops. In FY 2005, the Agency will deliver a
final report outlining the state-of-the-art in tools  for monitoring resistance development in the
field and the use of target  pest ecology to refine Insect Resistance Management strategies, as
they are determined in risk assessment practice.   This report will focus on data gaps in pest
biology, ecology, and population dynamics related to insect resistance  development. The report
will also provide  insight on the development of appropriate tools  to identify and measure
resistance in field populations of target pests.

       In FY 2005, EPA will  sponsor a workshop on the analysis  of population  genetics of
invertebrates  in agro-ecosystems.  Agency  risk assessors will use workshop  results to better
understand and assess pest  genetic architecture and the changes that occur due  to pest exposure
.to genetically modified crops, in order to inform future resistance management plans.

       Risk management research will deliver verified/validated resistance management models
for delaying resistance to PIP crops in target insects.  Models can describe the development of
resistance to  PIPs by targeted insects and various approaches to mitigating the development of
resistant insect populations.   The  Agency currently employs  nascent models   to develop
resistance management strategies.

       EPA will continue to upgrade the pesticide spray drift model and integrate the Agency's
research with the Spray Drift Task Force's research.  An upgraded spray drift exposure model
will be produced with added  modules for orchard and ground application of pesticides for
assessing risks associated with re-volatilization and secondary drift from the near  field to the
meso field.

       Little  is known about the environmental distribution and adverse environmental effects of
perfluorooctane sulfonate (PFOS), a persistent organic pollutant,  and  the alternative chemicals
being developed to replace it. In FY 2005, EPA will deliver "A Report on Approaches to Assess
Ecological  Risk of Fluorinated  Chemicals  in Small Fish and  Amphibian Models".  (R&D
Criteria: Performance)  This report will characterize PFOS reproductive and developmental
toxicity in small fish and amphibians and compare the toxicity of PFOS and substitutes, as well
as determine the  role  of life stage in susceptibility to toxicity.   The utility  of genomic and
proteomic techniques for PFOS toxicity will be assessed  and  the factors impacting ecological
risk will be made clear. Research will yield an integrated model to assess the risk of fluorinated
chemicals.

       Persistent Bioaccumulative Toxics:  The  Agency  will continue to support  prevention,
minimization, and, when possible, elimination of Persistent Bioaccumulative Toxics (PBTs) by

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improving methods for their identification and testing.  These pollutants pose risks because they
are toxic, persist in ecosystems, and accumulate in humans, fish, and wildlife as a result of direct
exposure and through the food chain.  EPA has committed, as outlined hi the Agency's draft
Multimedia  Strategy  for  Persistent Bioaccumulative  and  Toxic Chemicals,  to create a
coordinated, Agency-wide system that will address the multimedia issues associated with priority
PBT pollutants. (Criteria: Relevance) This research is necessary, because conventional pollution
control techniques will not provide a long-term, sustainable  solution. PBTs must eventually be
eliminated at  their source through process changes or chemical substitution in products.  EPA
will  advance the understanding of exposure, assessment,  and  management of PBTs while
simultaneously working toward PBT prevention.

       EPA  measures  progress on  actions under the Agency's multimedia  strategy through
environmental and human health indicators (e.g., reduced levels of PBTs hi human blood or fish
tissue),  chemical release, waste  generation,  use indicators and  other measures. (Criteria:
Relevance)

Human Health Risk Assessment

       Human health risk assessment program priorities are set based on input  from various
parts of EPA, other governmental organizations, and the public.  Highly trained scientists and
administrative personnel act on these priorities to produce documents and information responsive
to the needs of EPA's program offices, regional offices, and  regulatory partners in  other Federal
agencies; Tribal, state, and local organizations; and the public.

       EPA establishes priorities for human health assessments through internal  consultations
and advice from other Federal agencies and regulatory partners, and the regulated community,
both private and public sectors. The Agency publishes draft health assessments relevant to all
media programs, addresses comments from expert external  peer reviewers, and publishes final
assessments on the  Agency's Integrated Risk Information  System  (IRIS) for use by all EPA
programs and on the Internet for use by risk assessors in States and by organizations around the
world.

       In FY 2005, work will continue  on major  human health  assessments of national
significance, including trichloroethylene (TCE), ammonium  perchlorate, dioxin, methyl-tertiary-
butyl ether (MTBE), tetrachloroethylene, and asbestos.  These major assessments are of such
consequence  that other Federal agencies and often the National Academy of Sciences become
involved in an expert review capacity. When completed, these assessments are also  made
available through IRIS.  Other lower profile assessments that are still of high priority to Agency
programs and the public will be peer reviewed and completed in FY 2005 and made available on
IRIS.

       Research efforts will  also support EPA's  National Air  Toxics Assessment  (NATA)
Program by deriving peer reviewed cancer unit risk and chronic (RfC and RfD) and acute (ARE)
non-cancer reference values.  Additional research includes supporting EPA's Drinking Water
Program by characterizing — in peer reviewed documents — the magnitude and severity of risks
associated  with exposure to drinking  water  contaminants and by  developing  methods  for
quantitative microbial risk assessment.  Other efforts will assist EPA in assessing chemical risks
and supporting EPA's Superfund  Program by providing 1) site-specific technical support for

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Superfund risk and exposure assessments and 1) peer-reviewed provisional toxicity values to
support regional office decision-making.

       Another component of the program focuses on health assessment methods development
and  technical support and  assistance.   EPA's  Risk Assessment Forum  coordinates the
development  and external expert peer review of various risk assessment guidelines and other
guidance documents for use by all Agency programs.  Methods development research will
continue on  microbial risk assessment  techniques,  assessment approaches  for addressing
complex mixtures,  cumulative/aggregate risks, susceptible sub-populations, and development of
tools for quantifying dose-response, such as Benchmark Dose software and nasal dosimetry
methodologies. Expert internal and external peer reviewers help assure the relevance and quality
of EPA health assessment research.

       Finally, Agency scientists and other personnel produce Air Quality Criteria Documents
(AQCDs)  after consultation on priorities with  EPA staff.  The Clean Air Science  Advisory
Committee (CASAC) reviews the draft AQCDs and makes recommendations, which the Agency
addresses in producing the final document.  Expert staff provides technical support to assist in
interpreting the AQCDs for EPA program office use in decision-making. In FY 2005, EPA will
deliver a final Ozone Air Quality Criteria Document, which will provide technical support on the
Ozone and Particulate Matter AQCDs, and will continue work on the Oxides of Nitrogen AQCD.
These AQCD efforts to summarize  the state-of-the-science on criteria air pollutants in peer-
reviewed  documents  assist  the  Office  of Air  and  Radiation  hi fulfilling  its  statutory
responsibilities.

Research: Computational Toxicology

       The emerging sciences  of genomics,  computational  methods, systems biology, and
bioinformatics have created an opportunity to revolutionize the science used in risk assessments
of environmental agents.  While EPA has long worked toward obtaining the  studies needed to
reduce,  refine, and replace  test methods, computational toxicology (CT) research under this
objective has the potential to  lead to more sensitive and specific testing protocols and risk
assessment methods and to a reduction hi animal testing to a far greater extent by developing
alternative techniques for prioritizing chemicals  for  further testing.   A  framework for  a
Computational Toxicology Research Program in EPA, which has undergone peer review, has
been developed and will be released hi    FY 2004. This research supports the Molecular-level
Understanding of Life Processes activity, one of the Adrninistration's six interagency priority
areas  for research  and development, by  employing, among  other things, the use of genomic
information and modern computational techniques to enable better environmental management.
(Criteria: Relevance)

       EPA's Computational  Toxicology Research Program  has  three objectives:  1) use
computational tools to improve empirical linkages between exposure to an environmental agent,
presence of the agent in the body, effects on a target organ site, and expression of toxicity; 2)
develop strategies for prioritizing chemicals for subsequent screening and .testing; and 3) develop
better methods and predictive  models to improve quantitative risk assessment.  The Agency
initiated this research program hi FY 2003 with the broader objectives of expanding its ability to
assess and predict  the human health and ecological risks from environmental exposures and
reducing its reliance on animal testing protocols.  In FY 2005, the Agency will continue to make

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progress in these areas.  Specifically, EPA will conduct research that demonstrates how CT can
integrate new scientific advances that will allow more accurate risk  assessments, thereby
optimizing the cost of EPA regulations, while protecting human and ecological health.

       The FY 2005 CT initiative will build upon the current core program by accelerating the
use of bioinformatics and other computational approaches and apply the program to address
other high  priority regulatory  issues,  including  the assessment  of important  classes  of
environmental agents. In FY 2005, the Agency will begin to develop computational models that
could be  used to  help prioritize anti-microbial agents and  inerts for screening  and testing
requirements by the Agency.  This  initiative  specifically addresses needs  identified in the
Agency's 2003-2008 Strategic Plan (Criteria: Relevance), including:

•      Increasing the efficiency of registration and re-registration of pesticides and other agents
       to ensure that they meet current safety requirements;
•      Protecting human health and the environment by identifying, assessing and reducing risks
       presented by chemicals, including antimicrobial agents;
•      Identifying and assessing chemical, pesticide and microorganism potential risks; and
•      Setting priorities for potential risks

       EPA program offices will continue to work collaboratively to identify the most important
classes of chemicals and risk assessment needs for prioritization and strategic testing.

       Products of computational toxicology research conducted by EPA  researchers,  and
through contracts  and  cooperative  agreements  are  subjected  to  quality  assurance (QA)
procedures.  The Science to Achieve Results program (STAR) also provides research results
complementing EPA in-house research.  In 2005, the STAR program will continue to support
research leading to the  development of High Throughput Screens and studies that use a systems
biology approach for hazard identification  and risk assessment.  Under STAR, all research
projects are selected through a rigorous competitive external peer review process and designed
to ensure that only the highest quality efforts receive funding support. (Criteria: Quality)

Research: Endocrine Disrupter

       The  EDC  research  program  includes  a  diverse,  multi-disciplinary  set  of research
involving  human health and wildlife.  Research to provide a better understanding of the science
underlying effects,  exposure, assessment, and management of endocrine disrupters will direct
and refine future research and will develop tools that can help determine the impact of EDCs on
human health and the environment. Research hi direct support of EPA's screening and testing
programs will evaluate current testing protocols and develop new protocols to evaluate potential
endocrine effects of environmental agents. EDC research will assist decision makers in working
toward reducing and eliminating exposure of humans and ecosystems to EDCs.

        Evidence suggests that humans and animals, both domestic and wildlife species, have
suffered adverse health effects resulting from exposure to environmental chemicals that interact
                           1 f\Q
with the  endocrine system.     Collectively, these substances  are  referred to as  endocrine
108 U.S. EPA, Office of Research and Development. Environmental Endocrine Disruption: Effects Assessment and Analysis
Document. Risk Assessment Forum. Washington DC (1996)

                                         IV-156

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disrupting  chemicals  (EDCs).    EDCs  interfere  with  the production, release,  transport,
metabolism,  binding,  or  elimination of natural hormones hi the body responsible for the
maintenance  of equilibrium and the regulation of developmental  processes.   Reports  of
reproductive  effects hi humans over the last four decades, and increases hi certain cancers that
may have an endocrine-related basis (breast, prostate, testicular), have led to  speculation about
environmental causes.

       Recognizing the potential scope of the problem, the possibility of serious health effects
on  populations, and the  persistence  of some EDCs in the environment, EPA developed a
Research Plan109 for Endocrine Disrupters hi 1998.  The EDC Research Plan was  externally
peer-reviewed  by  a panel  convened by the  Agency's  Risk Assessment  Forum.  (Criteria:
Relevance)  The Research Plan is consistent with the overall Committee  on Environment and
Natural Resources  (CENR) Federal research framework, the recommendations made hi the 1999
report  on "Hormonally Active Agents hi the Environment"110 published by the NAS, and
recommendations made hi the World Health Organization (WHO)'s "Global Assessment of the
State of the Science of Endocrine Disrupters".l'1

       The  objective  of the  EDC  research  program is  to improve  the knowledge and
understanding of the exposures and interactions of endocrine disruptors hi the environment hi
order to improve risk assessment and risk management methods.  EPA has also developed an
EDC Multi-Year Plan112 (MYP) that identifies the elements of the EDC research program the
Agency will pursue in an  integrated fashion. (Criteria:  Relevance)  The MYP and research
strategy documents represent an ongoing effort to design and conduct relevant EDC research
within well-defined priorities and goals.

       As hi the past, EDC-related work  will be  organized along an integrated pathway of
effects, exposure, risk assessment, and risk management research. EPA's program includes areas
that are of unique importance to EPA hi helping the Agency meet its legislative mandates as well
as research that serves to improve the basic  understanding of EDCs, complementing research
conducted at  other Federal agencies, hi other countries, and by industry.

       Endocrine disrupters research hi FY 2005 will address the priorities  established in the
1998 plan by developing tools to identify hazards, characterize the extent of human and wildlife
exposures to known and suspected EDCs, and manage risks from exposure to EDCs.   This
research focuses on three long term goals: 1) provide a better understanding of the science
underlying the effects, exposure, assessment, and management  of  endocrine disruptors;  2)
determine the  extent  of  the  impact of endocrine disruptors  on  humans,  wildlife, and the
environment; and  3) support EPA's screening and testing program mandated under the Food
Quality  Protection   Act  (FQPA)   of   1996   and   the   Safe  Drinking  Water  Act
109 U.S. EPA, Office of Research and Development. Research Plan for Endocrine Disruptors (EPA/600/R-98/087). Washington
DC: U.S. Government Printing Office. (1998)
110 National Research Council. Hormonally Active Agents in the Environment. Washington D.C.: National Academy Press.
(1999)
111 International Programme of Chemical Safety. Global Assessment of the State-of-the-Science of Endocrine Disruptos. World
Health Organization (WHO). (2002)
112 U.S. EPA, Office of Research and Development Multi-Year Plan for Endocrine Disruptors. Washington D.C.: EPA Accessed
January 14, 2004. Available through the internet: www.epa.gov/osp/myp

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Amendments113SDWAA) of 1996.  Both FQPA and  SDWAA authorize EPA to institute a
screening program for estrogenic and other endocrine effects.

       While there  is a wealth of data available on some  endocrine disrupters,  much more
research is needed for the Agency to carry out its large number of mandates. In FY 2005, EPA
will continue to develop and evaluate an innovative DNA microarray and other state-of-the-art
analytical methods  for EDCs.  Using  genomics in the  continued development of improved
molecular and computational tools that can be used to prioritize chemicals for screening and
testing is within the "Molecular-level Understanding of Life  Process" priority, which is one of
the Administration's six science and technology priorities  for federal  investment. (Criteria:
Relevance)

       Other important areas of research to be conducted in FY 2005  include:  determining
whether exposures to endocrine disrupting pesticides  during development and maturation of the
immune system alter immunocompetence later in life; investigating potential sources of EDCs
including wastewater treatment plants and concentrated animal feeding operations and the ability
of conventional  and advanced drinking water treatment  processes  to remove  EDCs; and
continuing a longitudinal study started in FY 2004 designed to examine  very young children's
aggregate exposures to selected pesticides, EDCs, and persistent pollutants. The EDC research
program has identified and described appropriate, strategic performance measures and schedules
within the EDCs MYP. (Criteria: Performance)

Research: Fellowships

       EPA fellowships are administered through a variety of programs including: the  Science
To Achieve Results (STAR) graduate fellowship program, the Greater Research Opportunities
(GROs) program, the American Association for the Advancement of Science (AAAS), and more
recently the Association of Schools of Public Health (ASPH).  The STAR graduate and GRO
fellowship programs are educational assistance  whereas the AAAS and the ASPH fellowships
are professional development opportunities in direct support of EPA.

       A blue ribbon panel of the EPA Science Advisory Board recommended hi 1994 that
EPA enhance its environmental education programs for training the next generation of scientists
and engineers. To meet that challenge in 1995, EPA initiated the Science To  Achieve Results
(STAR) graduate fellowship program. This program is designed to attract the brightest and most
dedicated students in the Nation for training in scientific and engineering disciplines pertaining
to the protection of public health and the environment.  Fellowships are awarded through an
external competitive review process.  (Criteria:  Quality)  The STAR fellowship program is the
only Federal fellowship program designed exclusively for students pursuing advanced degrees in
the environmental sciences and engineering.  This program is open to  doctoral and entering
Masters'  degree students who plan to attend accredited US universities.  EPA  receives  roughly
1,300 applications per year to the program. In  FY 2005, the Agency  will invest additional
resources to support STAR graduate fellowships.  This additional investment will extend the
purpose of developing high quality scientists across multiple disciplines, including the biological
and physical sciences, mathematics, computer sciences, and engineering that will benefit EPA,
the private sector,  and the entire Nation.
113 Safe Drinking Water Act Amendments (1996)

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       Through  the  GRO program, EPA offers  undergraduate  and graduate fellowships to
students attending minority  academic institutions.  This undergraduate student program was
initiated in 1982 as a means  to bolster the ability of these institutions to offer excellent training
for minority students hi  environmental disciplines.  To quality, students must attend a fully
accredited  four-year U.S. minority academic institution, which include: Historically Black
Colleges or Universities  (HBCU), Hispanic Serving Institutions (HSIs), and Tribal  Colleges
(TCs).  The graduate GRO stipend is equivalent to that of STAR fellowship including an annual
stipend, fixed amount for authorized expenses, and tuition and fees. Undergraduate fellowships
recipients receive lesser amounts of the same categories and must participate in a summer intern
program after their first year of the fellowship, during which the fellow completes a summer
project meant to complement the work they are doing while supported by the fellowship program
at their home institution.

       Since 1981, EPA hi a joint  effort  with the AAAS  has operated  the Science and
Engineering Fellowship  Program,  which places  highly qualified and motivated  tecfinical
professionals hi EPA headquarters offices for one year, to work on projects at the science-policy
interface.  The program operates through a cooperative agreement and its purpose is to enhance
the careers of highly trained technical professionals by providing first-hand knowledge of how
EPA uses technical information in its decision making process.  Through 2003, the Agency has
hosted roughly 190 fellows.  To be eligible, a candidate must have a PhD degree or equivalent hi
a technical discipline with an environmental focus. Candidates must pass several layers of peer
review  and secure an appropriate  placement hi  EPA  headquarters before  being offered a
fellowship.

       In 2003, EPA debuted a new professional development program called the Environmental
Public Health  Fellowship Program.  Under  a cooperative agreement with the Association of
Schools of Public Health (ASPH), eligible fellows are placed hi EPA labs, centers, and offices to
conduct projects that contribute to EPA's public health mission.  In FY 2005, EPA will invest
additional  resources  to support ASPH fellowships.  This investment will further extend the
important contribution to public health issues that ASPH fellows provide within EPA.  To be
eligible for this program, a candidate must have graduated from a US university with an
accredited school of public health that  is a member hi good standing of ASPH.  Candidates must
possess a Masters of Public Health degree or equivalent, pass a peer review process, and secure
an  appropriate  placement  hi  EPA  before being  offered  a  fellowship.   Fellows  work
independently, with the guidance of an EPA mentor.  The fellowship provides a stipend, plus
funds for health insurance, relocation, orientation, and program-related travel.

Homeland Security:  Preparedness, Response, and Recovery

       EPA's Homeland  Security research program supports one of six Administration FY 2005
Interagency Research and Development Priorities  - Homeland Security (Criterion: Relevance).
The Agency intends to increase the state of the knowledge of potential threats, as well as its
response capabilities, by  assembling and evaluating private sector tools and capabilities so that
preferred response approaches can be identified, promoted, and evaluated, for future use by first
responders, decision makers, and the public.  EPA will work with Federal institutions and other
organizations through collaborative research efforts to help provide strong homeland defense and
response programs.
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       In order to facilitate this research, EPA established the National Homeland  Security
Research Center to conduct critical cross-cutting research to  provide near-term, appropriate,
affordable, reliable, tested,  and effective technologies and guidance. Research  focuses  on
preparedness, risk assessment, detection, containment, decontamination and disposal in response
to chemical and biological attacks. The Center has put into place standard operating procedures
and quality assurance plans to ensure quality hi funding its research (Criterion: Quality).  In
addition, the Center and its programs are undergoing a number of reviews including those of the
National  Academy of Sciences, EPA  Science Advisory  Board, and  Board  of Scientific
Counselors (Criteria: Relevance and Quality).

       This research contributes to the Preparedness, Response, and Recovery goal of EPA's
Homeland Security Strategic Plan114, which describes the goals and priorities for the Agency's
Homeland Security program (Criterion:  Relevance).   Under this goal, EPA will focus  on
strengthening and broadening its response capabilities, clarifying its roles and responsibilities to
ensure an effective response, and promoting unproved response capabilities across government
and industry for areas in which EPA has unique knowledge and expertise.

       Water Security Research:  Water security research will  focus  on developing,  testing,
demonstrating,  communicating, and implementing enhanced methods for detection, treatment,
and containment of biological  and chemical warfare agents and bulk industrial chemicals
intentionally introduced into drinking water systems.

       In FY  2005, detection work will focus on testing and verifying innovative detection
devices,  developing new devices or methods for rapid response, and pilot-scale testing of
detection networks and early alert and warning systems.  Containment research will  seek to
develop, evaluate, and test methods and procedures for preventing the spread of contaminants in
drinking water sources and distribution systems, with particular emphasis on the use of models to
predict contaminant flow and isolation.  Research will  also focus on development, evaluation,
and testing of methods, technologies, and procedures for decontaminating drinking  water, with
consideration of efficacy, utility, safety, and cost.

       Scientific and  technical  support  activities  will  continue to  provide  assistance for
managing threats to, or actual attacks on, water infrastructure.  Emphasis will be placed on:
refining a protocol for first responders; improving detection,  containment, and decontamination
techniques and  technologies based  on vulnerability assessments; improving  approaches for
coordination of water managers and public health officials hi responding to terror events; and
enhancing physical security of water systems  through new design and security techniques that
may result hi inherently safer water infrastructure.   In  FY 2005 guidance and support will be
provided on unproved detection, containment, and  decontamination methods.  Research will
target utility managers and emergency responders to help institute monitoring approaches, and
EPA will seek the help of public health officials hi identifying and controlling disease outbreaks.
Other efforts will improve techniques and technologies  for sharing critical information to assist
utility managers  and first  responders through a structured  information sharing strategy, and
relaying  information to stakeholders.  Emphasis in FY 2005 will be on implementation of tools
previously developed and outreach to stakeholders.  Efforts will also begin to address research
related to protecting wastewater infrastructure from physical or contaminant threats or attacks.
114 U.S. EPA. Strategic Plan for Homeland Security. Washington D.C.: EPA. Accessed on January 14, 2004. Available only
online at: http:;Vwwv,'.epa.gov/epahoMie/dowiiloads/epa_liomeIamLsecurity_siTategic_plan.pdf
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       Rapid Risk Assessment Research:  Rapid  risk assessment research will focus on: 1)
implementation of the products developed to date through outreach activities and 2) initiation of
the second generation of risk assessment building on knowledge gained hi all areas of the risk
assessment paradigm.

       In FY  2005,  research will include: risk assessment of by-products of contamination;
refining toxicity databases; developing transport, fate, dispersion, and exposure parameters; and
developing computer-based tools to aid decision makers in assessing the risks associated with
biological and  chemical  attacks.   In addition,  work will begin on establishing protocols for
communicating  risks, developing exposure   assessments, and  improving  biological  risk
assessment approaches, including sampling procedures to ensure effective decontamination.
Risk assessment work will also focus on providing  scientific data and methodologies to support
determination/revision of cleanup guidance goals as new toxicity information becomes available
and as new potential agents are identified.  This will involve screening the literature for major
health information and coordinating with other  entities.  Risk assessments may also be used in
the development of  an approach  for integrating chemical  and radiological risk paradigms to
address a potential "duty bomb" threat.

       Risk communication will  be an ongoing function requiring revised training  materials
tailored to thousands of local communities, first responders, building owners/operators, water
supply systems, and  other stakeholders.  These  activities will incorporate initial tools and other
products developed through research in this area.

       Biologicals Research:  New research will be initiated that will include development and
validation of environmental sampling and analysis methods for known and emerging biological
threat agents.  Such methods  are critical to ensuring appropriate response and recovery actions
and developing necessary laboratory support capacity.  This research will also produce data,
information, and technologies to assist EPA hi developing standards, protocols, and capabilities
to recover from and mitigate the risks associated with biological  attacks.
FY 2005 CHANGE FROM FY 2004

S&T

•      (+$7,854,700, +25.2 FTE):  This technical adjustment realigns cumulative risk resources
       from the Safe Food/FQPA research program to the human health research program.  This
       move consolidates  EPA's  cumulative  risk  research  under  the  human  health  and
       ecosystems program/project and aids in  the planning and coordination of this effort.
       There will not be any programmatic or performance impacts, since the actual work will
       not change hi nature or scope.

•      (+$4,080,093,  +4.0 FTE):    In FY  2005, EPA will devote additional resources to
       computational toxicology (CT) research.  This  investment will build upon the current
       core  program by accelerating the  use  of bioinformatics and  other computational
       approaches and apply the program to address high priority regulatory issues, including
       the assessment of important classes of environmental agents. In FY 2005, the Agency
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will begin to develop computational models that could be used to help prioritize anti-
microbial agents and inerts for screening and testing requirements.

(+$2,000,000):  This increase supports EPA's efforts to implement information quality
guidelines.   While  the Agency has  extensive procedures in place to ensure that  the
information it disseminates meets high standards, further actions will be taken to ensure
that such information is current and fully complies with the guidelines.  In FY 2005, the
Agency will establish an extramural mechanism to assist Regions hi identifying external
peer reviewers and securing their advice and assistance.

(+$1,256,500, +2.5  FTE):  This increase reflects redirected resources to further support
EPA's Science to Achieve Results (STAR) graduate fellowships program.  The majority
of funds will be  redirected from ground water and surface  water interaction research
within Goal  3.   This investment  will  further support development  of high quality
scientists across multiple  disciplines, including the biological and physical sciences,
mathematics, computer sciences, and engineering that will benefit EPA, the private
sector, and the entire Nation.

(+$600,000): This increase reflects new resources to support the Environmental Public
Health Fellowship Program through the Association of Schools of Public Health (ASPH).
This investment will further the important contribution to public health issues that ASPH
fellows provide.  Under a cooperative agreement with ASPH, eligible fellows  are placed
hi EPA  to conduct projects that  contribute to  the Agency's public health mission.
Candidates must possess a Masters of Public Health degree  or equivalent, pass a peer
review process, and secure  an  appropriate placement  in EPA before being offered  a
fellowship.

(+$300,000):  This  reflects an increase  to EPA's Integrated Risk Information System
(IRIS) program to improve the overall quality and accessibility of the IRIS database.

(-$22,170,900):   This reduction eliminates extramural ecosystems research  under  the
Science to Achieve  Results (STAR) program.  STAR grants  (approximately 50) will be
eliminated under the following areas: 1) estuarine and Great  Lakes Programs (EaGles),
including the development and  evaluation of new and  existing indicators for the West
U.S. Coast,  East  U.S. Coast, Gulf of Mexico, and the Great Lakes, as well as cross-
regional  indicators;  2) genomic indicators of water, including the development of new
indicators based  on genomic-enabled research methods and approaches; 3) invasive
species research  to predict  a species'  potential to  invade vulnerable ecosystems,
particularly aquatic  ecosystems, as well as early detection and rapid response, especially
for inland aquatic and coastal estuarine systems;  4) the statistics center  that conducts
advanced statistical  science crucial to environmental research at many  stages, including
design, development, and analysis;  and 5)  new  watershed classification schemes
supporting  the  design  of  efficient  monitoring strategies, diagnosis  of  biological
impairment, and prioritization of watersheds.  As a result of this reduction,  STAR efforts
designed to establish or  improve the connection between  ecosystems  stressors  and
effects, serving as  input to  decisions at the regional,  state, and  local levels, will be
discontinued.  The Agency will continue to support  ecosystem protection research
through its in-house research program.

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      (-$7,854,700, -25.2 FTE):  This technical adjustment reflects the realignment of resources
      supporting Safe Food/FQPA cumulative risk research.  Resources are being realigned to
      the human health research program. Given the core scientific nature of this research and
      the focus  on  mode-of-action, the work more  logically  fits under the human health
      research program as  opposed to the problem-driven, FQPA research  program.  The
      movement of resources will not diminish support for the implementation of FQPA, nor
      will there be any programmatic or performance impacts, since the actual work will not
      change in nature or scope.

      (-$4,860,000):  This  decrease reflects the  elimination of Science to Achieve Results
      (STAR)  grants to fund research on endocrine disrupting chemical (EDCs).  EPA will
      maintain in-house research in this area.

      (-$2,016,400):  This decrease represents the elimination of Science to Achieve Results
      (STAR) grants in mercury research. EPA will maintain in-house research in this area.

      (-$1,264,700):  The Agency will no longer maintain the ultraviolet (UV) monitoring
      network.  The network was originally designed to evaluate human exposure to UV.  In
      1996, the Agency refocused the network on ecological impacts.  The UV network has
      achieved the ecological goals set out when it was redesigned in 1996.

      (-$1,127,100):  These resources represent savings that will result from consolidation of
      many information technology (IT) services, including call center and service desk, server
      management, and hardware and software acquisition, and IT  equipment  standardization.
      This will result in enhanced security and uniform maintenance requirements.  Since these
      resources represent an efficiency savings, there is no negative programmatic impact.

      There  are additional increases for payroll, cost of living,  and enrichment for new and
      existing FTE.
Superfund
       (+$2,000,000):  This increase will support new Homeland Security work in the area of
       biological  threat agents, including the development and validation of environmental
       sampling and analysis methods for known and emerging biological agents.  This research
       is critical to ensuring appropriate response and recovery actions related to biological
       agents.

       (-$8,193,900):   This  represents complete elimination of Homeland Security  building
       decontamination research.  EPA will not complete its core responsibilities to provide
       scientifically defensible and cost-effective  decontamination  methods and force  it to
       disband the technical and engineering expertise that will be needed to address known and
       emerging biological and chemical threats in the future.
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ANNUAL PERFORMANCE GOALS AND MEASURES
Research

Research to Support FQPA

In 2005        Provide high quality exposure, effects and assessment research results that support the August 2006 reassessment of current-use
               pesticide  tolerances to EPA's Office of Pesticide Programs  so that, by 2008, EPA will be able to characterize key factors
               influencing children's and other subpopulations' risks from pesticide exposure.
Performance Measures:

Children's exposure data and tools for assessing aggregate
exposure to residential-use pesticides
FY2003
Actuals
FY2004
Pres. Bud.
                                                                                              FY2005
                                                                                              Pres. Bud.
                                                                                              09/30/05
                                                                                                                data/tools
Baseline:       The Food Quality Protection Act (FQPA) requires EPA to review, by August 2006, the pesticide tolerances for pesticides in use
               as of August 1996.  EPA's Office of Research Development (ORD) has been conducting research to generate new and improved
               exposure and effects tools (data, methods, aad models) to assist the Office of Pesticide Programs (OPP)  in meeting this 2006
               requirement.  In FY05, ORD will provide OPP with a summary document highlighting the key results from ORD's exposure
               research program over the period 2000-2005. ORD will also provide OPP with validated children's pesticide exposure data and
               exposure factor data from multiple exposure field and laboratory studies.  This high quality data will fill critical data gaps and
               eliminate the need for using many default assumptions currently used in the risk assessment process. An analysis of these results
               will also be performed to help identify remaining critical children's exposure data needs.  ORD will also provide OPP with a
               suite of exposure-to-dose models that can be used  to estimate aggregate pesticide exposures for children  (by age and
               developmental life stage) and other susceptible subpopulations.  These state-of-the-art models will be used by OPP to develop
               pesticide exposure distributions and address key issues associated with variability and uncertainty in exposure.  With improved
               information, EPA can better protect public health from risks posed by pesticide use. Beginning in FY 2005, regular evaluations
               by independent and  external panels will provide  reviews  of EPA research  programs' relevance, quality,  and successful
               performance to date, in accordance  with  OMB's Investment Criteria for Research and Development.   Reviewers will also
               qualitatively determine whether EPA has been successful in meeting its annual and long-term commitments for research.

Risk Assessment

In 2005        Through FY2005 initiate or submit to external review 28 human health assessments and complete 12 human health assessments
               through the Integrated Risk Information System (IRIS).  This information will improve EPA's and other decisionmakers' ability
               to protect the public from harmful chemical exposure
Performance Measures:

Complete 4 human  health assessments and publish  their
results on the IRIS website

Initiate  or submit to external peer  review human health
assessments of at least 20 high priority chemicals.

Complete 8 human  health assessments and publish  their
results on the KRIS website

Initiate  or submit to external peer  review human health
assessments of 8 high priority chemicals
FY2003
Actuals
FY2004
Pres. Bud.
4


20
                                                                                              FY2005
                                                                                              Pres. Bud.
                                                                                                                assessments
                                                                                                                assessments
                                                                                                                assessments
                                                                                                                assessments
Baseline:       IRIS is an EPA data base containing Agency consensus scientific positions on potential adverse human health effects that may
               result from exposure to chemical substances found in the environment.  IRIS currently provides information on health effects
               associated with chronic exposure to over 500 specific chemical substances. IRIS contains chemical-specific summaries of
               qualitative and  quantitative health information in support of the first two steps of the risk assessment process, i.e., hazard
               identification and  dose-response  evaluation.   Combined  with specific situational  exposure  assessment information, the
               information in IRIS may be used as a source in evaluating potential public health risks from environmental contaminants.  IRIS
               is widely used in risk assessments for EPA regulatory programs and site-specific decision making.  Updating IRIS with new
               scientific information  is critical to maintaining information quality and providing  decision makers with a credible source of
               health effects information. Achieving this APG will provide EPA and other decision makers with needed updates to IRIS so
               they can make informed decisions on how to best protect the public from harmful chemical exposure. In FY 2004, the Agency
               will complete 4  human health assessments and initiate or submit for external peer review human health assessments of at least 20
               high priority chemicals.  In FY 2005, EPA will complete 8 more assessments and initiate or submit for review an additional 8
               assessments, for a  two-year total of 12 completed assessments and 28 initiated or submitted for review.mmBeginning in FY
               2005, regular evaluations by independent and external panels will provide reviews of EPA research programs' relevance, quality,
               and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.  Reviewers
               will also qualitatively determine whether EPA has  been successful in meeting its annual  and long-term commitments for
               research.
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Regional Scale Ecosystem Assessment Methods

In 2005        The baseline ecological condition of Western streams will be determined so that, by 2008, a monitoring framework is available
               for streams and small rivers in the Western U.S. that can be used from the local to the national level for statistical assessments of
               condition and change to determine the status and trends of ecological resources.

In 2004        Provide Federal, state and local resource managers with a means to more effectively determine long-term trends in the condition
               and vitality of Eastern  U.S.  stream ecosystems through measurements of changes  in the genetic  diversity  of stream fish
               populations.

Performance Measures:                                     FY2003           FT 2004           FY2005
                                                          Actuals            Pres. Bud.          Pres. Bud.
A study of fish genetic diversity that demonstrates the power                     1                                    report
of this modern approach for evaluating condition and vitality
of biotic communities to Federal, state and local  resource
managers.

Baseline ecological condition of Western streams determined                                         1                  report


Baseline:       This FY 2005 APG represents the first statistically-valid baseline for Western stream condition from state-based data. Although
               States and Tribes are required by the Clean Water Act (CWA) to monitor the condition of all their waters, they typically are only
               able to monitor at, and make scientifically defensible statements about, targeted sites that account for only a small percentage of
               their total waters.  The monitoring framework used in the achievement  of this APG removes scientific uncertainty by using a
               probability design approach  (random sampling) to provide  a more cost-effective,  scientifically-defensible  alternative for
               determining the condition of all the streams of a State or Tribe.  EPA is transferring this approach to our State, Tribal, and EPA
               Regional partners in the Western U.S. so that they can determine the  status and trends of their ecological resources.  This
               monitoring framework  also provides the  scientific  basis for identifying problems and needs for action, causes of harm, and
               successful mitigation and restoration efforts. This information will ultimately allow EPA to determine its success in achieving
               specific environmental outcomes.

               Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
               relevance, quality, and  successful performance to  date, in accordance with OMB's Investment Criteria  for  Research and
               Development.   These evaluations will include an examination  of a program's design to  determine the appropriateness of a
               program's short-, intermediate-, and long-term goals and its strategy for attaining these.  Reviewers will also qualitatively
               determine whether EPA has been successful in meeting its annual and long-term commitments for research. Recommendations
               and results from these reviews will improve the design  and  management of EPA research programs and help to measure their
               progress under the Government Performance and Results Act (GPRA).

Research on Riparian Zone Restoration

In 2005        Provide technical guidance for  implementing and evaluating projects to restore riparian zones, which are critical landscape
               components for the restoration of aquatic ecosystems and water quality, so that, by 2010, watershed managers have state-of-the-
               science field-evaluated tools, technical guidance, and decision-support systems for selecting, implementing, and evaluating cost-
               effective and environmentally-sound approaches to restore ecosystem services as part of watershed management

Performance Measures:                                     FY2003           FY2004           FY2005
                                                          Actuals            Pres. Bud.          Pres. Bud.
Technical guidance for implementing and evaluating projects                                        1                  tech. guide
to restore riparian zones


Baseline:       This FY 2005  APG will provide  State,  Tribal,  Regional,  and  local watershed managers and restoration practitioners with
               technical guidance for selecting, implementing, and evaluating cost-effective and environmentally-sound approaches to restore
               ecosystem services. Essential ecosystem services are a result of naturally occurring processes and include such necessities for
               human health as a reliable supply of clean water, oxygen, nutrient cycling, and soil regeneration, as well as wildlife habitat and
               greenspace.  Habitat destruction, invasive species, and non-point source pollutants such as excess nitrogen and eroded sediments
               adversely impact ecosystem services by contributing to the loss of ecosystems and/or their functions.  Finding effective and
               efficient ways to protect and restore ecosystem services is necessary for human, as well as ecological, health.  Riparian zones,
               i.e. those areas  immediately adjacent to river and stream banks,  are critical components of any watershed.  Without a healthy
               riparian zone, it would be difficult, if not impossible, to achieve water  quality goals.   EPA is evaluating the effectiveness of
               riparian restoration techniques as tools to achieve goals such as water quality criteria  or the restoration of specific ecosystem
               functions, such  as denitrification.   The  guidance  represented by  this  APG  will help watershed managers and restoration
               practitioners in decision-making and on-the-ground  implementation of scientifically- and technically-defensible restoration and
               management techniques.

               Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
               relevance, quality, and  successful performance to  date, in accordance with OMB's Investment Criteria  for  Research and
               Development.  Reviewers will also qualitatively determine whether EPA has been successful in meeting its annual and long-term
               commitments for research.
                                                            IV-165

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Exposures and Effect of Environmental Research

In 2005        Provide risk assessors and managers with methods and tools for measuring exposure and effects in children, and characterizing
               and reducing risks to children from environmental agents in schools so that, by 2014, EPA will be able to demonstrate why some
               groups of people, defined by life stage, genetic factors, and health status, are more vulnerable than others to adverse effects from
               exposure to environmental agents.

Performance Measures:                                     FY2003          FY2004          FY2005
                                                          Actuals            Pres. Bud.         Pres. Bud.
Methods and tools  for  measuring exposure  and effects in                                       09/30/05          methods/tools
children, and characterizing and reducing risks to  children
from environmental agents in schools


Baseline:       Current risk assessments for  children are hampered by the lack of exposure and risk data and by a lack of methods that are
               appropriate for children.  By FY 2004, EPA expects to have better data on children's exposures and on children's  exposure
               factors.  In FY 2005, research will build upon the improved data on children's exposures by compiling and analyzing the data,
               and translating the enhanced knowledge into better methods and approaches for measuring and estimating children's  exposure
               and risk. The research in FY 2005 will culminate in initial approaches, ready for  external peer review, on: how to conduct
               children's exposure and risk assessments; how to replace default uncertainty factors with data and distributions; and how to use
               biomarkers more appropriately in characterizing children's exposures.  In addition, the  increased understanding of children's
               exposures will provide evaluated methods for reducing their exposures and risks in schools  and other indoor environments.
               These data, methods, and approaches will significantly improve the reliability,  credibility, and transparency of children's risk
               assessments used  by regulatory decision-makers throughout EPA and will provide to the public and to school and daycare
               officials tested methods to reduce children's exposures to chemical pollutants.

               Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
               relevance, quality, and successful  performance to  date,  in accordance  with  OMB's Investment Criteria for Research and
               Development. Reviewers will also qualitatively determine whether EPA has been successful in meeting its annual and long-term
               commitments for research.  Recommendations and results  from these reviews will improve the design and management of EPA
               research programs and help to measure then: progress under the Government Performance and Results Act (GPRA).

Mercury Research

hi 2005        Provide information on managing mercury and other co-pollutants from utility boilers so that, by 2010, there is an extensive set
               of data and tools available to  help industry and federal,  state, and local environmental management officials make decisions on
               the most cost-effective ways to reduce or prevent mercury releases into the environment.

Performance Measures:                                     FY2003          FY2004          FY2005
                                                          Actuals            Pres. Bud.         Pres. Bud.
Information  on managing mercury and  other co-pollutants                                       1                 report
from utility boilers


Baseline:       EPA's Mercury Study Report to Congress identified emissions from coal-fired utilities as one of the most significant contributors
               of mercury  to the air (http://www.epa.gov/oar/mercury.html).  On December 14, 2000, EPA determined that mercury emissions
               from coal-fired utilities needed to be regulated.  Unless some form of multi-pollutant legislation for utility boilers is passed by
               Congress, a Maximum Achievable  Control Technology standard (MACT) will be promulgated in December 2004 to control
               mercury emissions with full compliance of utilities expected by December 2007. There are a variety of technological options
               under development that could be  used to more cost-effectively achieve any  required mercury reduction.   These control
               technologies need to be  evaluated before utilities make decisions on how to comply.  The state-of-the-science on  emission
               controls for mercury will be advanced by investigating the factors that impact the species of mercury in coal-fired utilities flue
               gas  and the performance of promising mercury control  technologies.  Results available  by the end of FY 2005 will be
               documented and made available for use by utilities and other interested stakeholders.

               Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
               relevance, quality, and successful  performance to  date,  in accordance  with  OMB's Investment Criteria for Research and
               Development.  These  evaluations will include an examination of a program's design to determine the appropriateness of a
               program's short-,  intermediate-,  and long-term goals and its strategy for attaining  these.  Reviewers will  also qualitatively
               determine whether EPA has been successful in meeting  its annual and long-term commitments for research. Recommendations
               and results  from these reviews will  improve the design and management of EPA research programs and help to measure then-
               progress under the Government Performance and Results Act (GPRA).

Homeland Security Research

In 2005        Provide tools, case studies, and technical guidance  so  that, by FY 2006, first responders and decision-makers will  have the
               methods, guidance documents, and technologies to enhance safety and to mitigate adverse effects of the purposeful introduction
               of hazardous chemical or biological materials into the environment.

In 2004        Provide a database of EPA experts on topics  of importance to assessing the health and ecological impacts of actions  taken
               against homeland security that is available to key  EPA staff and managers who might be called upon to rapidly assess the
               impacts of a significant terrorist event.



                                                            IV-166

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In 2004        Provide to building owners, facility managers, and others, methods, guidance documents, and technologies to enhance safety in
              large buildings and to mitigate adverse effects of the purposeful introduction of hazardous chemical or biological materials into
              indoor air.

In 2004        Verify two point-of-use drinking water technologies that treat intentionally introduced contaminants in drinking water supplies
              for application by commercial and residential users, water supply utilities, and public officials.
Performance Measures:

Verify two  treatment technologies  for application  in
buildings by commercial and residential users, utilities, and
public officials to treat contaminants  in drinking  water
supplies.

Prepare ETV evaluations on at least 5 new technologies for
detection,    containment,    or   decontamination    of
chemical/biological  contaminants  in  buildings  to help
workers select safe alternatives.

Through  SBIR  awards,   support  as   least  three  new
technologies/methods to decontaminate  HVAC systems  in
smaller commercial buildings or decontaminate valuable or
irreplaceable materials.

Prepare technical guidance  for building owners and facility
managers on methods/strategies to minimize  damage  to
buildings     from     intentional    introduction     of
biological/chemical contaminants.

A restricted access database of EPA experts with knowledge,
expertise, and experience for use by EPA to  rapidly assess
health and ecological impacts focused on safe buildings and
water security.

Risk  assessment  toolbox  to  predict  and reduce  the
consequences of chemical/biological attacks in  U.S. cities.

Technical guidance for water system owners  and operators
on   methods/strategies for   rninimizing  damage  from
intentional introduction of biological/chemical contaminants

Water system-related case studies that provide a spectrum of
contingency planning situations and responses, including one
specifically  focused on the National Capital area
FY2003
Actuals
FY2004
Pres. Bud.
2
FY 2005
Pres. Bud.
                  9/30/04
                                   09/30/05
                                   09/30/05
                                                    verifications
                                                    verifications
                                                    techs/methods
                                   guidance
                                                    database
                                                    toolbox
                                   tech. guidance
                                                    case studies
Baseline:      EPA's homeland security research provides appropriate, effective, and rapid risk assessment guidelines and technologies to help
              decision-makers prepare for, detect, contain, and decontaminate building and water treatment systems against which chemical
              and/or biological attacks have been directed. The Agency intends to expand the state of the knowledge of potential threats, as
              well as its response capabilities, by assembling and evaluating private sector tools and capabilities so that preferred response
              approaches can be identified, promoted, and evaluated for future use by first responders, decision-makers, and the public.
              Examples of the types of products that will be available in FY 2005  include: sampling protocols, efficacy protocols, risk
              assessment tools, and threat scenario simulations. These products will enable first responders to better deal with threats to the
              public and the environment posed by the intentional release of toxic or infectious materials.

              Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
              relevance, quality, and successful performance to date, in accordance with  OMB's Investment Criteria for Research and
              Development.  These evaluations  will include an examination of a program's design to determine the appropriateness of a
              program's short-, intermediate-, and long-term goals  and its  strategy for  attaining these.  Reviewers  will also qualitatively
              determine whether EPA has been successful in meeting its annual and long-term commitments for research.  Recommendations
              and results from these reviews will improve the design and management of EPA research programs and help to measure their
              progress under the Government Performance and Results Act (GPRA).


VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES


FY 2005 Performance Measure;  Children's exposure data and tools for assessing
aggregate exposure to residential-use pesticides


Performance Database:   Program output; no internal tracking system
                                                         IV-167

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Data Source: N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations: N/A

Error Estimate: N/A

New/Improved Data or Systems: N/A

References: N/A

FY 2005 Performance Measure: Information on managing mercury and other co-
pollutants from utility boilers

Performance Database:  Program output; no internal tracking system

Data Source: N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations: N/A

Error Estimate: N/A

New/Improved Data or Systems: N/A

References: N/A

FY 2005 Performance Measure: Methods and tools for measuring exposure and effects in
children, and characterizing and reducing risks to children from environmental agents in
schools.

Performance Database:  Program output; no internal tracking system

Data Source: N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

                                     IV-168

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Data Quality Reviews: N/A

Data Limitations:  N/A

Error Estimate. N/A

New/Improved Data or Systems: N/A

References: N/A

FY 2005 Performance Measure;  Technical guidance for implementing and evaluating
projects to restore riparian zones.

Performance Database: Program output; no internal tracking system

Data Source:  N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations:  N/A

Error Estimate: N/A

New/Improved Data or Systems: N/A

References: N/A

FY 2005 Performance Measure:  Baseline ecological condition of Western streams
determined.

Performance Database: Program-output; no internal tracking system

Data Source:  N/A

Methods, Assumptions and Suitability:  N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations:  N/A

Error Estimate: N/A
                                      IV-169

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New/Improved Data or Systems:  N/A

References: N/A

FY 2005 Performance Measure;  Complete 8 human health assessments and publish their
results on the IRIS website

Performance Database:  Program output; no internal tracking system

Data Source: N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations:  N/A

Error Estimate: N/A

New/Improved Data or Systems:  N/A

References: N/A

FY 2005 Performance Measure:  Initiate or submit to external peer review human health
assessments of 8 high priority chemicals

Performance Database:  Program output; no internal tracking system

Data Source: N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations:  N/A

Error Estimate: N/A

New/Improved Data or Systems:  N/A

References: N/A

FY 2005 Performance Measure:  Risk assessment toolbox to predict and reduce the
consequences of chemical/biological attacks in U.S. cities.

                                      IV-170

-------
Performance Database: Program output; no internal tracking system

Data Source: N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations: N/A

Error Estimate: N/A

New/Improved Data or Systems: N/A

References:  N/A

FY 2005 Performance Measure: Technical guidance for water system owners and
operators on methods/strategies for minimizing damage from intentional introduction of
biological/chemical contaminants.

Performance Database: Program output; no internal tracking system

Data Source: N/A

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations: N/A

Error Estimate: N/A
New/Improved Data or Systems: N/A

References:  N/A

FY 2005 Performance Measure: Water system-related case studies that provide a
spectrum of contingency planning situations and responses, including one specifically
focused on the National Capital area.

Performance Database: Program output; no internal tracking system

Data Source: N/A
                                      rv-171

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Methods, Assumptions and Suitability: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

Data Limitations: N/A

Error Estimate: N/A

New/Improved Data or Systems: N/A

References: N/A


EFFICIENCY/MEASURES/MEASUREMENT DEVELOPMENT

       As a measure of efficiency, the Agency will track the time it takes to process ecosystems
protection research  grant proposals,  global change research grant proposals and endocrine
disruptors  research   grant  proposals  from RFA  closure to  submittal to  EPA's  Grants
Administration  Division.  The Agency will  also track the number of peer-reviewed  journal
articles produced per scientific/engineering FTE.


COORDINATION  WITH OTHER AGENCIES

       EPA participates in the White House Agricultural Biotechnology Working Group and
works  closely with  FDA and the USDA's Animal Plant Health Inspection Service (APHIS).
FDA and USDA APHIS each have statutory authorities that the Federal government  uses in
concert with EPA authorities to ensure the safety of biotechnology products. The three agencies
(EPA,  USDA, and FDA) discuss all major actions on genetically modified products. EPA, FDA
and  USDA  APHIS have  been  working  together .to  better  disseminate  information  on
biotechnology products and regulations. It is anticipated that a database of such information will
be made available to the public hi FY 2004. The Agency will continue to work with industry and
USDA  and FDA,   as well as  other relevant  Federal  agencies,  on issues  that arise  from
biotechnology innovation in agriculture.

       Several Federal agencies sponsor research on variability and susceptibility in risks from
exposure to environmental  contaminants.   EPA collaborates with a number of  the Institutes
within the National Institutes of Health (NIH)  and the Centers for Disease  Control and
Prevention (CDC).

       For example, the National Institute of Environmental Health Sciences (NIEHS) conducts
multi-disciplinary biomedical research programs,  prevention  and intervention efforts, and
communication strategies.  The NIEHS program  includes an effort to study the effects of
chemicals, including pesticides and other toxics, on children.  EPA collaborates with NIEHS in
supporting the  Centers for  Children's Environmental Health and Disease Prevention, which
study whether and how environmental  factors play a role hi children's health.

                                        IV-172

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       The National Institute of Child Health and Human Development  (NICHD) supports
research on the reproductive, neurobiological, developmental, and behavioral processes that
determine  and maintain the health of children and adults.  The NICHD program includes
research on the effects of exposure to environmental agents on human development.  NICHD,
EPA, CDC,  and other Federal agencies are designing the National Children's Study (NCS), a
large longitudinal epidemiology study of children's exposure to environmental agents. The NCS
will  enroll  100,000  children during the mother's pregnancy  and follow them throughout
childhood  and adolescence.  This  study on environmental influences on children's health and
development was mandated in the Children's Health Act of 2000.

       The National Center for Toxicological Research (NCTR) supports fundamental research
on the effects of chemicals regulated by the Food and Drug Administration.  Although some of
the models used by NCTR may be similar to those used by EPA, the chemicals and regulatory
context vary significantly.  Historically,  NCTR has been a leader in  developing models and
principles  for  risk assessment,  which has led to  collaborations between EPA and  NCTR
scientists.

       EPA's Global Change Research Program is coordinated with the Committee on Climate
Change Science and Technology Integration (CCCSTI). Through its participation in the Climate
Change Science Program (CCSP), the Agency collaborates closely with other CCSP member
agencies (e.g., the National Oceanic  and Atmospheric Administration's (NOAA's) Regional
Integrated Science and Assessment Program), to ensure appropriate prioritization and efficiency,
to avoid duplication, and to ensure  consistently high standards of scientific review for all aspects
of supported studies and analyses.

       EPA and NICHD jointly sponsor research  on genetic susceptibility and variability of
human malformations. EPA's efforts in this area focus on identifying environmental agents that
cause birth  defects and other developmental disorders,  the molecular mechanisms of birth
defects, and how to use mechanistic and other data in the risk assessment process.

       The  National Cancer Institute's  (NCI) Agricultural Health Study  (AHS) is  a large
epidemiology study of cancer hi farm workers and then* families. EPA is  participating in the
AHS through an exposure study of a participant subgroup.

       EPA coordinates with the other Federal agencies having health risk assessment expertise,
including  the  Food and  Drug Administration (FDA), the Centers for Disease  Control and
Prevention,  the Agency for Toxic Substances and Disease Registry  (ATSDR), the National
Science Foundation, and the National Institutes of Health.  In the context of human health risk
assessment,  the purposes  of these Interactions are to enhance the  quality of methods and
approaches through exchange of perspectives and to coordinate and collaborate in future research
efforts in  support of human health risk assessment.  The  Agency also participates on  several
government-wide working groups on chemicals of mutual concern, including dioxin, ammonium
perchlorate, trichloroethylene, and formaldehyde.

       Research in  ecosystems  protection   is coordinated government-wide through  the
Committee on Environment and Natural Resources (CENR).  EPA is an active participant in the
                                        IV-173

-------
ENR, and all work in this objective is fully consistent and complementary with other Committee
member activities.

       EPA researchers  work within the  CENR on  EMAP and other ecosystems protection
research. The Mid-Atlantic Landscape Atlas was developed in cooperation with NOAA, USFW,
the University of Tennessee, and the U.S. Department of Energy's (DOE's) Oak Ridge National
Laboratory.   Development of  the  Networking  and  Information Technology Research  &
Development  (NITR)  Modeling  System is  coordinated with the Army Corps  of Engineers
(USAGE), USDA, and DOE.  EPA cooperates with the CENR's Subcommittee on Ecological
Systems, hi the restoration of habitats and species, impacts of landscape change, invasive species
and inventory  and monitoring programs.   A draft Ecological  Research Strategy underwent
interagency peer review by the Committee on Environment and  Natural Resources (CENR) in
June 1997 and external peer review by the Science Advisory Board's Ecological Processes and
Effects Committee (SAB-EPEC) in July 1997. The strategy was revised in response to SAB-
EPEC suggestions and CENR comments, and the final document was published in June  1998.

       EPA is working through interagency agreements with the USAGE on the development of
tools for the management of stressors in reservoir and lake watersheds and the establishment of
an approach for  the  development of decision  support systems to  manage  these  types  of
ecosystems.  Through interagency agreements with the U.S. Geological Survey (USGS), EPA
has worked to investigate and develop tools for assessing the impact of hydrogeology on riparian
restoration efforts. This work also focuses on development of tools for the dispersal modeling of
invasive  species,  the evaluation of the effectiveness of restoration  efforts  to reconnect
groundwater and  surface water hydrology,  and the establishment of zones of denitrification
within impaired streams. The collaborative work with the USGS continues to play a vital role in
investigating the impact and fate of atmospheric loadings of nitrogen and nitrogen applications
as part of restoration technologies on terrestrial and aquatic ecosystems. All of these efforts have
significant implications for risk management in watersheds, total maximum daily load (TMDL)
implementation, and management of non-point source pollutants.

       Additional  interagency  grants  programs  in  Ecology  include:  the  Ecology  and
Oceanography of Harmful Algal Blooms  (EcoHAB) program with NOAA, NSF, DOD, and
NASA, and nutrient science for watershed management with USDA.

       The broad  nature of the EDCs issue necessitates a coordinated effort on both the national
and international  levels.  EPA has shown extensive leadership  at both levels - chairing the
Committee on Environment  and Natural Resources  (CENR) interagency working group and
chairing  a  Steering  Group on Endocrine  Disrupters under the  auspices of the  International
Programme  on  Chemical  Safety/World Health  Organization/Organization  for Economic
Cooperation and  Development (IPCS/WHO/OECD).   Due  to the  complex  nature of the
uncertainties posed  by endocrine disrupting chemicals, the overlapping concerns of Federal
agencies, and the resource constraints on the  Federal budget, close coordination and cooperation
among Federal agencies are essential to the resolution of critical research questions. While the
CENR provides the umbrella for this coordination, individual agencies are responsible for the
development of their own independent research plans.

       Under EPA's leadership, an inventory of Federal research on endocrine disruption has
been  developed and is used to  evaluate Federal efforts, identify research gaps and  establish

                                       IV-174

-------
priorities, and clarify governmental roles and responsibilities. Working with other nations, EPA
has expanded the U.S. Federal inventory to include projects from Canada, Japan, and Europe and
has turned it into a Global Endocrine Disrupters Research Inventory with close to 800 projects.
The IPCS/WHO/OECD Steering Group on Endocrine Disrupters has developed a "Global State-
of-the-Science Review" which was made available August 12, 2002.  Both the inventory and the
international assessment result  from recommendations made at the 1997  G-8 Environmental
Ministers' Meeting. In FY 2005, EPA will continue to collaborate with European countries
under the U.S.-EU Science and Technology Agreement and with Japanese scientists under the
U.S.-Japan Science and Technology Agreement.

       Homeland Security research is conducted  in collaboration with numerous agencies,
enabling funding to be leveraged across  multiple programs and producing synergistic results.
EPA's  National  Homeland  Security  Research Center (NHSRC)  works closely with the
Department of Homeland Security to assure that EPA's efforts are directly supportive of DHS
priorities.  Utilizing experience gained from the management of ORD's Star Grant Program, EPA
is also working with DHS  to provide support and guidance  to DHS in  the startup of their
Universitity  Centers of Excellence  program.   The Department of Defense  organizations are
primarily responsible for the production  and  control of military chemical agents, and EPA's
National Homeland Security Research Center  (NHSRC)  works closely with the Edgewood
Chemical and Biological Center (ECBC),  the Army Research Laboratory, the Technical Support
Working Group, the Army Corps of Engineers, and  other Department of Defense organizations.
In conducting biological agent research the NHSRC works closely with the Centers for Disease
Control (CDC) as well as their military counterparts. The NHSRC works with the Department of
Energy to access research conducted by DOE's National Laboratories as well as to obtain data
related to radioactive materials.  In addition to these major collaborations,  the NHSRC has
relationships with numerous other Federal  Agencies including  the Department of Homeland
Security, the U.S. Air Force, Food and Drug Administration,  and the National Institute of
Standards and  Technology.  Also,  the NHSRC is working with state and  local emergency
response personnel to better understand their needs and build relationships, which will enable the
quick deployment of NHSRC products.
                                        IV-175

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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                  HEALTHY COMMUNITIES AND ECOSYSTEMS
Brownfields, IV-3, IV-8, IV-9, IV-12, IV-16,
  IV-80, IV-81, IV-82, IV-85, IV-86, IV-87,
  IV-88, IV-95, IV-96, IV-97, IV-99, IV-101
Brownfields Projects, IV-80, IV-86
Categorical Grant
  Brownfields, IV-80, IV-82
  Lead, IV-22
  Pesticides Program Implementation, IV-22
  Targeted Watersheds, IV-103
  Wetlands Program Development, IV-103
Children and other Sensitive Populations,
  IV-22, IV-80
Commission for Environmental Cooperation,
  IV-22, IV-80, IV-81, IV-83
Congressionally Mandated Projects, IV-22,
  IV-80, IV-103, IV-134
Endocrine Disrupters, IV-14, IV-134, IV-135,
  IV-157,IV-174,rV-175
Environment and Trade, IV-80, IV-83, IV-84
Environmental Education, IV-102
Environmental Justice, IV-3, IV-4, IV-80,
  IV-84, IV-85, IV-86, IV-94
Geographic Program
  Chesapeake Bay, IV-103
  Great Lakes, IV-103
  Gulf of Mexico, IV-103
  Lake Champlain, IV-103
  Long Island Sound, IV-103
  Other, IV-80,  IV-103
Great Lakes Legacy Act, IV-103, IV-107,
  IV-110
Homeland Security
  Preparedness, Response, and Recovery,
  IV-22, IV-134, IV-159
Human Health Risk Assessment, IV-134,
  rV-139,IV-154
Infrastructure Assistance
  Mexico Border, IV-80
International Capacity Building, IV-23, IV-94
Mexican Border, IV-2, IV-7, IV-88, IV-99
National Estuary Program / Coastal
  Waterways, IV-103
Pesticides
  Field Programs, IV-22
  Registration of New Pesticides, IV-22
  Review / Reregistration of Existing
    Pesticides, IV-22
POPs Implementation, IV-22, FV-53
Regional Geographic Initiatives, FV-80,
  IV-103
Regulatory Innovation, IV-80, FV-89
Research
  Computational Toxicology, IV-134
  Endocrine Disrupter, IV-134, FV-156
  Fellowships, IV-134, IV-158
  Global Change, IV-134
  Human Health and Ecosystems, IV-134,
    IV-139
  Pesticides and Toxics, IV-134
Science Advisory Board, IV-4, IV-9, IV-45,
  rv-7i, rv-72, rv-i44, rv-iss, rv-ieo,
  IV-174
Science Policy and Biotechnology, IV-134,
  IV-136
State and Local Prevention and Preparedness,
  IV-22, IV-55
Toxic Substances
  Chemical Risk Management, IV-22
  Chemical Risk Review and Reduction,
    IV-22, IV-36
TRI / Right to Know, IV-23
US Mexico Border, IV-80
Wetlands, IV-3, IV-103, IV-105, IV-106,
  rv-112, rv-ii5, iv-i3i, rv-132, rv-i33

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Goal 5: Compliance and Environmental
           Stewardship

-------
Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 5: Compliance and Environmental Stewardship	V-l
      Improve Compliance	V-17
      Improve Environmental Performance through Pollution Prevention and Innovation.. V-40
      Build Tribal Capacity	V-69
      Enhance Science and Research	.'	V-78
      Subject Index	V-89

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                          Environmental Protection Agency
           FY 2005 Annual Performance Plan and Congressional Justification

                     Compliance and Environmental Stewardship

STRATEGIC GOAL:    Improve  environmental  performance through  compliance with
environmental requirements, preventing pollution, and promoting environmental stewardship.
Protect human health and the environment by encouraging innovation  and providing incentives
for governments, businesses, and the public that promote environmental stewardship.

                                 Resource Summary
                                (Dollars in thousands)


Compliance and Environmental
Stewardship
Improve Compliance
Improve Environmental Performance
through Pollution Prevention and
Innovation
Build Tribal Capacity
Enhance Science and Research
Total Workyears
FY2003
Actuals
$662,042.0
$395,964.4
$123,311-5
$70,556.6
$72,209.6
3,492.9
FY2004
Pres. Bud.
$712,907.9
$418,998.2
$137,968.5
$78,759.3
$77,181.8
3,489.3
FY2005
Pres. Bud.
$750,556.9
$431,695.1
$169,802.0
$78,931.1
$70,128.7
3,547.4
FY 2005 Req. v.
FY 2004 Pres
Bud
$37,649.0
$12,696.9
$31,833.5
$171.7
($7,053.1)
58.1
BACKGROUND AND CONTEXT

       The underlying principles of the activities within Goal 5 are to improve environmental
performance through compliance with environmental requirements, preventing pollution, and
promoting  environmental  stewardship.  Working in  partnership with  State  and  Tribal
governments, local communities and other  Federal agencies, EPA identifies and addresses
significant environmental and public health problems, strategically deploys its resources, and
makes use of integrated approaches to achieve strong environmental outcomes.

Enforcement and Compliance

       The Agency is committed to implementing a "smart enforcement"  approach to EPA's
mission  of  identifying,  preventing,  and   reducing  potential  environmental  risks  and
noncompliance and promoting greater voluntary environmental stewardship. This approach uses
the most appropriate enforcement or compliance tool to address the most significant problems to
achieve the best outcomes.

       Smart enforcement embodies an integrated, common-sense approach to problem-solving
and decision-making. Simply put, smart enforcement  is the use of an appropriate mix of data
collection and analysis;  compliance monitoring, assistance and incentives; civil and criminal
enforcement resources;  and  innovative problem-solving  approaches; to  address significant
environmental issues and achieve environmentally beneficial outcomes. This approach requires
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that the Agency develop and maintain strong and flexible partnerships with regulated entities and
a well-informed public, in order to foster a climate of empowerment, and a shared responsibility
for the quality of our nation's land, resources and communities.

Pollution Prevention and Innovation

       While enforcement presents one tool for achieving the Agency's mission, the diversity of
America's environments  (communities, homes, workplaces and ecosystems) requires EPA to
adopt a multi-faceted approach to protecting the public from threats  that may be posed by
pesticides, toxic chemicals and other pollutants. Throughout its history, EPA has taken the lead
in developing and evaluating tools and technologies to monitor, prevent, control,  and cleanup
pollution. The emphasis  of the Agency's  programs hi the 1970's  and  1980's was to identify
viable options for controlling or remediating environmental problems. Over the last decade, the
Agency has turned its attention more and more to pollution prevention (P2) when addressing
many important human health and environmental problems. A preventive approach requires that
the Agency develop: (1) innovative design  and production techniques that minimize or eliminate
environmental liabilities;  (2) holistic approaches to utilizing air, water, and land resources; and
(3) fundamental changes  in the  creation of goods and services and their delivery to consumers.
EPA remains committed to helping industry further prevent pollution by adopting more efficient,
sustainable, and protective business practices, materials, and technologies.
       The Pollution Prevention Act  of 1990 establishes pollution prevention as a "national
objective" and the  pollution prevention hierarchy as national  policy. The  Act requires that
pollution should be prevented or reduced at the source wherever feasible; that pollution that
cannot be prevented should be recycled in an environmentally safe manner; and that, in the
absence of feasible prevention or recycling opportunities, pollution should be treated. Disposal or
other release into the environment should be used as  a last resort. Pollution Prevention is
generally  more effective  than end-of-pipe  approaches  in reducing  potential health and
environmental risks  hi that it helps identify voluntary programs which:

•      Reduce releases to the environment;
•      Reduce the need to manage pollutants;
•      Avoid shifting pollutants from one medium (air, water, land) to another; and
•      Protect and  conserve energy sources and natural resources for future generations by
       cutting waste and conserving materials.

Increasingly  complex environmental  problems, such  as the  continuing  accumulation  of
greenhouse gases; poor water quality; increasing urban smog;  and inequities in building and
maintaining water infrastructure; give rise to the need for EPA to develop and use a broader set
of cross media tools. Shrinking state and Federal budgets also require the development of new
ways to leverage partnerships with  states, local communities  and businesses to produce better
environmental results at lower costs. EPA will work to ensure that governments, businesses and
the public meet Federal legal environmental requirements, and will encourage and assist them to
adopt environmental stewardship and to voluntarily exceed current requirements. Through public
recognition, incentives, and sometimes  relief from regulatory mandates,  EPA will encourage
environmental stewardship, behavior that goes beyond compliance with the laws.


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                  Strengthening      environmental
                  partnerships,  targeting  priorities,
                  expanding the current  collection of
                  tools,  and  creating  a  more
                  innovative  culture  to effectively
                  address  challenging  problems  is
                  what EPA's innovation strategy is
                  all about
       EPA  is  committed  to  promoting  innovation  in
strategies to protect the  environment,  including  new  less-
polluting  technologies.  In  FY  2002,  EPA  launched  a
comprehensive Innovations Strategy to drive innovation in all
aspects of the Agency's work. Crafted with input from states
and other stakeholders, the Strategy focuses on transforming
EPA into a more innovative, results-oriented organization by:

•      strengthening partnerships with states and Tribes;
•      focusing on a set of priority problems that are in need of innovative solutions;
•      developing tools and approaches that expand problem-solving capabilities; and,
•      fostering an innovation-friendly culture and set of organizational systems.

       The effectiveness of EPA's regulatory decisions depends on the analysis underlying these
regulations,  and the clarity with which they are presented. Their quality determines how well
environmental  programs actually  work, and  the  extent  to which  they  achieve health  and
environmental goals. Sound economic and policy analysis builds the foundation for EPA to meet
its overarching goals, as well as to wisely use societal resources.

       EPA's emphasis on economic and policy  analysis supports  the Agency's  continuing
effort to quantify the benefits of its air,  land and water regulations, policies and programs. For
example, determining the value of ecological systems and the benefits associated with preserving
these systems will be critical over the coming years as the Agency strives to focus  on healthy
communities and ecosystems. Sound  economic  and policy analysis  also supports EPA's
stewardship   and improved  compliance  goals  by  fostering  consideration  of  alternative
approaches,  such as voluntary programs,  innovative compliance tools, and flexible, market-based
solutions. Sound economic and policy analysis helps EPA achieve results by documenting and
communicating its decisions, thereby avoiding challenges to our analyses that might otherwise
impede our ability to implement regulations, policies or programs.

Tribal Capacity

       Since adoption of the EPA Indian Policy in 1984, EPA  has  worked with Tribes on a
government-to-government basis that affirms the federal trust responsibility that EPA maintains
with federally recognized Tribe and Tribal government.  In terms of strengthening partnerships
with Tribes, under Federal environmental statutes, the Agency has responsibility for  assuring
human health and environmental protection in Indian Country. EPA has worked to establish the
internal infrastructure and organize its activities in order to meet this responsibility. The creation
of EPA's American Indian Environmental Office (AIEO)  in 1994 took responsibility  for such
efforts and was a further step in ensuring environmental protection hi Indian Country.

Research

       Today's environmental innovations extend beyond scientific and technological advances
to include new policies and management tools that respond to changing conditions  and needs.
Examples include market-based incentives that provide an economic  benefit for environmental
improvement; regulatory flexibility that gives companies more discretion related to how specific
goals are met; and disclosure of information about environmental performance. As  a result of
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these and other innovations, the nation's environmental protection system continues to evolve,
with a focus on increased efficiency and effectiveness, and greater inclusiveness of all elements
of society.

MEANS AND STRATEGY

       Improving Compliance:  A strong enforcement and compliance program identifies and
reduces  noncompliance  problems;  assists  the  regulated  community  in  understanding
environmental laws and regulations; responds to complaints from the public; strives to secure a
level economic playing field for law-abiding companies; and  deters future  violations. The
Agency carefully targets  its enforcement and compliance assurance resources, personnel and
activities to address the most significant risks to human health and the environment,  and to
ensure that certain populations do not bear a disproportionate environmental burden.

       In FY 2005 the Agency will identify national priorities, in consultation with states and
other regulatory partners, to most effectively and efficiently address significant environmental,
public health, or noncompliance problems, and will use the most appropriate tool(s) to achieve
the best outcomes culminating with the  development and implementation of performance-based
strategies for FY2005 - FY  2007 national priorities that take into account  environmental justice
considerations and a workforce deployment analysis.

       The EPA will also promote compliance hi core program areas by working within the
agency and with our partners to address major problems in media-specific programs with the
most appropriate tool(s) to  achieve the  best outcomes. These efforts will be aided by use of a
facility "Watch List" that identifies facilities with chronic noncompliance problems. EPA will
use  compliance data to  identify problems in need of EPA or state attention,  to monitor
performance of Regional and media-specific program elements, and to improve the effectiveness
of the program by incorporating lessons learned into program operations.

       The Agency's "smart enforcement" approach uses the most appropriate enforcement or
compliance tools to address the most significant problems to achieve the best outcomes. This
approach includes:

•      Compliance Assistance and  Incentives: The Agency's Enforcement  and Compliance
       Assurance  Program uses compliance  assistance  tools to encourage compliance with
       regulatory requirements and reduce adverse public health and environmental problems.
       To  achieve compliance,  the regulated community must first understand its regulatory
       obligations, and then learn how to best comply with those obligations. EPA supports the
       regulated universe by assuring that requirements are clearly understood, and by helping
       industry identify cost-effective options to comply through the use of pollution prevention
       and innovative technologies. EPA also enables other assistance providers (e.g.,  states,
       universities) to provide compliance information to the regulated community.

•      Compliance Monitoring: The Agency reviews and evaluates the activities of the regulated
       community to determine compliance with applicable laws, regulations, permit conditions
       and settlement agreements and to determine whether conditions presenting imminent and
       substantial  endangerment exist. The majority  of work-  years devoted to  compliance
       monitoring are provided by the regions to conduct investigations, on-site inspections and

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       evaluations,  and perform monitoring,  sampling and emissions testing. Compliance
       monitoring activities are  both environmental media-  and sector-based. The traditional
       media-based inspections  and evaluations complement those performed by states  and
       tribes, and are a key part of our strategy for meeting the long-term and annual goals
       established for the  air,  water,  pesticides,  toxic  substances,  and hazardous  waste
       environmental goals included in the EPA Strategic Plan.

•      Enforcement: The Enforcement Program addresses violations of environmental laws, to
       ensure that violators come into compliance with these laws and regulations. The program
       achieves  the Agency's  environmental  goals through  consistent, fair and focused
       enforcement of all  environmental statutes.  The overarching goal of the enforcement
       program is to protect human health and the environment, targeting its actions according
       to degree of health and environmental risk. Further, it aims to level the economic playing
       field by ensuring that violators do not realize an economic benefit from non-compliance,
       and seeks to deter future violations.

•      Auditing and Evaluation Tools: Maximum compliance requires the active efforts of the
       regulated  community to  police itself. EPA will  continue  to  investigate  options for
       encouraging  self-directed audits and disclosures. It will also continue to measure  and
       evaluate the effectiveness  of Agency programs in  improving compliance rates  and
       provide information and compliance assistance to the regulated community.  Further, the
       Agency will maintain  its focus on  developing  innovative approaches, through better
       communication,  fostering partnerships  and cooperation, and the application of new
       technologies.

•      Partnering:  State,  Tribal and  local governments bear much of the responsibility for
       ensuring  compliance, and  EPA  works  in  partnership with them and other Federal
       agencies  to  promote environmental protection. EPA  also develops  and maintains
       productive partnerships with other nations, to ensure  and enforce compliance with US
       environmental standards and regulations.

•      NEPA  Federal  Review:  EPA fulfills its uniquely federal responsibilities under the
       National Environmental Policy Act (NEPA). NEPA requires that federal agencies prepare
       and submit Environmental Impact Statements  (EIS), to identify potential environmental
       consequences of major proposed activities, and  develop plans to mitigate or eliminate
       negative impacts. The Agency maximizes its use of NEPA review resources by targeting
       its  efforts toward  potentially  high-impact projects,  and by  promoting cooperation,
       innovation, and working towards a more streamlined review process.

•      International:   EPA will  continue to  cooperate  with  states and the  international
       community  to   enforce  and  ensure  compliance with cross-border environmental
       regulations,  and to help  build  their  capacity to  design and implement effective
       environmental regulatory, enforcement and environmental impact assessment programs.

       Improving  Environmental   Performance  through  Pollution  Prevention  and
Innovation: Preventing pollution through regulatory, voluntary, and partnership actions, that is,
educating and changing the behavior of the  public, is a  sensible and  effective approach to


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sustainable development while protecting our nation's health. Two  groups with significant
potential to  effect  environmental  change  are  industry  and academia.  The  Agency  has
successfully implemented a number of pollution prevention (P2) programs with both of these
groups. These programs address the market for products through the purchasing and supply
chain, emphasize certain sectors for additional targeted technical assistance, provide support for
State and Tribal infrastructure, and work to reduce the number and amount of toxic chemicals in
use by finding alternative chemicals and alternative industry processes.

•      Environmentally Preferable Purchasing: Because of the enormous span of private and
       public sector activities which would benefit from a prevention-based approach, EPA's P2
       programs necessarily  cover a  wide variety of informational and capacity building
       activities. For example, the Agency works to improve the market for environmentally
       "greener"  products  though  voluntary  programs,  the  Environmentally  Preferable
       Purchasing  (EPP) Program, and the Green Suppliers Network. EPP provides guidance
       and carries  out  a variety of initiatives  and outreach activities for a wide constituency,
       including federal agencies. Under the EPP Program, EPA will help purchasers identify
       those products that generate the least pollution, consume fewest non-renewable natural
       resources, and constitute the  least threat to  human health and to wildlife.  The Green
       Suppliers Network enables large  manufacturers  to  actively  engage all levels  of their
       supply chain in the development of good business approaches to prevent pollution.

•      Pollution Prevention State Grants:  The development and support of State infrastructure is
       essential for providing small  and medium size businesses, government and schools with
       the opportunities to change and to test  new technologies, processes and alternatives. A
       vital component of our strategy is the continuation of the Pollution Prevention State
       Grant Program.  In FY 2005, EPA will provide $7 million to States and Tribes to support
       their efforts to  provide industry  with technical  assistance, information sharing,  and
       outreach. The grants also support promising, innovative ideas for preventing pollution.

•      Technical Assistance:  Sector-based technical assistance is another method to accomplish
       our mission. The Resource Conservation Challenge is a major national effort  to find
       flexible, yet more protective ways to conserve our valuable resources through pollution
       prevention, waste reduction and energy recovery activities that will improve public health
       and the  environment.  EPA is working to address  environmental problems  in the
       electronics,  buildings, hospitals, paper production, and priority chemicals areas under this
       comprehensive approach. Similarly, in an effort to expand voluntary pollution prevention
       strategies to the healthcare  sector, the Hospitals for a  Healthy Environment (H2E)
       Program works with hospitals and health care facilities to eliminate mercury  use and
       reduce hospital wastes.

•      Green Chemistry:  EPA works to help industry further prevent  pollution by adopting
       more efficient, sustainable and protective business practices, materials, and technologies.
       EPA's  Green Chemistry  Program supports research and  fosters development  and
       implementation   of innovative  chemical technologies  to prevent  pollution in  a
       scientifically sound, cost-effective manner. The Green Engineering Program works to
       incorporate  "green" or environmentally conscious thinking and approaches in the daily
       work of engineers, especially of chemical and environmental engineers. Similarly, EPA's
       Design for the Environment (DfE) Industry Partnership Program promotes integration of

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cleaner, cheaper, and smarter pollution  prevention solutions  into everyday business
practices.

NEPA Federal Review:   EPA fulfills its uniquely federal responsibilities  under the
National Environmental Policy Act (NEPA). NEPA requires that federal agencies prepare
and submit Environmental Impact Statements (EIS), to identify potential environmental
consequences of major proposed activities, and develop plans  to mitigate or eliminate
negative impacts. The Enforcement and Compliance Assistance Program maximizes its
use of NEPA  review resources by targeting its efforts toward potentially high-impact
projects, and  by promoting cooperation, innovation,  and working towards  a more
streamlined review process.

Resource Conservation Challenge (RCC):  This program focuses on recovering materials
and energy, either by converting wastes into products and energy directly or as a result of
process and product redesigns that produce these benefits. We will closely coordinate our
RCC efforts with the Agency's other pollution prevention activities, potentially revising
our strategies  or targets to focus  on materials and energy  recovery through recycling
when source reduction is not a feasible solution. The Agency  is also working  with its
partners to identify additional goals that will reflect our expanded effort, beginning in
2003, to increase recovery of materials and energy  and  reduce releases  of priority
chemicals in waste. We expect these new goals to be in place by 2004, as the program
becomes fully operational.

State  Innovation  Grant  Program:    EPA  will  develop  and promote   innovative
environmental protection strategies that achieve better environmental results  at a lower
cost and also reward environmental stewardship. In collaboration with its state and Tribal
partners, the Agency will continue to focus its efforts on innovations that will  help small
businesses and communities improve both their environmental performance and their
bottom lines. A cornerstone of the Agency's Innovation Strategy is reaching out to states
and tribes through the State Innovation Grant Program to promote, support and facilitate
innovation hi state and Tribal environmental programs. The Grant Program allows states
and tribes to test innovative ideas, such as using Environmental  Management Systems in
the permitting  system .to improve  environmental results while  achieving resource
efficiencies.

Regulatory and Economic Management and Analysis: EPA is exploring the potential for
more integrated, holistic, regulatory and  non-regulatory approaches at  a facility level,
building on experience with federal and State pilot programs for permitting and pollution
prevention. EPA sees facility-wide  approaches as holding  the possibility of obtaining
better environmental results, while  eliminating unnecessary regulatory  burdens. These
approaches should  help  stimulate pollution  prevention, and help facilities  obtain the
maximum benefit from use of environmental management systems. The Agency will
augment programs such as EPA's National Environment Performance  Track Program,
which  recognize  and  reward  superior  environmental  performance  and  motivate
improvements. Under its Sector Strategies Program, EPA will also tailor environmental
performance improvement efforts to particular industry sectors.
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•      Small Business:  EPA has undertaken an effort to review the current Agency Small
       Business Strategy. The new Strategy will guide the Agency in future efforts to understand
       the operations and needs of small businesses, consider those needs when developing and
       implementing programs and policies that affect them, and work effectively with the small
       business community to improve environmental performance.

       Building Tribal Capacity: EPA's strategy for Tribes has three major components. First,
work with Tribes to create an environmental presence for each federally recognized Tribe.  An
environmental presence allows most Tribes to support  at least one or two persons  working in
their community to build a strong, sustainable environment for the  future. These people perform
vital work by assessing the status of a Tribe's environmental condition and building an
environmental program tailored to that Tribe's needs.

       Another key role of this workforce is to alert EPA  of  serious conditions requiring
attention in the near term so that,  in addition to assisting in the building of Tribal environmental
capacity, EPA can work with the Tribe to respond to immediate  public health and ecological
threats. Second,  provide the  information  needed by  the Tribe to meet  EPA  and  Tribal
environmental priorities. At the same time, ensure EPA has the ability to view and analyze  the
conditions on Indian lands and the effects of EPA  and Tribal actions and programs on  the
environmental conditions.  Third,  provide the  opportunity  for implementation  of  Tribal
environmental programs by Tribes, or directly by EPA, as necessary.

       Managing  and  Improving  Environmental  Data:   Through  the  Environmental
Information Exchange Network  (http://www.exchange network.net), EPA  will continue  to
provide funding to states, tribes, and territories to encourage and promote their data integration
efforts and participation in the Network.1 These grants will allow states and tribes to create "next
generation" environmental data systems that integrate air, water, and waste data and provide the
regulated  community  with efficient and  reliable electronic means for reporting compliance
information consistent with the President's Management Agenda and the goals of e-Government.

       The National Environmental Information Exchange Network grant program  encourages
state and other partners' data integration efforts and their participation in the Network.  State,
Tribal, and EPA data on the Network will both facilitate understanding of various environmental
issues  and serve  as  a  precursor  to  understanding  the  data needed  to  fully comprehend
environmental conditions and trends and, thus, make better-informed environmental  and human
health decisions.

       This program has four main parts: Network Readiness; Implementation; Collaboration;
and  Support  Grants.  These grants  will increase state and Tribal capacity to  integrate their
environmental data, reduce reporting burden, enhance electronic reporting, provide public access
to data, and participate in the Exchange Network.

       Enhancing Science and Research: EPA's Compliance and Environmental Stewardship
strategic goal is   designed  to protect human health  and  the  environment  by   improving
environmental behavior  through  regulatory and non-regulatory means. Under  this  goal, EPA
strives to use science and research more strategically and effectively to inform Agency policy
decisions and guide compliance, pollution prevention, and environmental stewardship efforts. In
order to strengthen the scientific  evidence and research supporting environmental policies and

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decisions, EPA  works with its partners and stakeholders to identify research needs and set
priorities. The Agency continues to  conduct research on pollution prevention and new  and
developing technologies, with an overall aim of promoting conservation of energy and natural
resources, pollution prevention, recycling, and other aspects of environmental stewardship.

       EPA also conducts research to enhance its capacity to evaluate the economic costs  and
benefits and other social impacts of environmental policies. These efforts, undertaken in concert
with other agencies, will result hi unproved methods to assess economic costs and benefits, such
as improved economic assessments of land use policies and improved assessments for the
valuation of children's health, as well as other social impacts of environmental decision-making.

       The  Agency will also  continue to characterize, prevent, and clean up contaminants
associated  with  high  priority  human health  and  environmental  problems  through  the
development and verification of improved environmental tools and technologies.  EPA will
incorporate a holistic approach to pollution prevention by assessing the interaction of multiple
stressors threatening both human and environmental health, and by developing cost-effective
responses to those  stressors. Research will also explore the principles  governing sustainable
systems and the  integration of social, economic, and  environmental objectives in environmental
assessment  and management.  Emphasis  will be on developing and assessing  preventive
approaches for industries and communities having difficulty meeting pollution standards. In a
broader context, the pollution prevention research program will continue expanding  beyond its
traditional focus on the industrial sectors to other sectors (e.g., municipal) and ecosystems. The
P2 research program will also focus on developing outcome goals to measure its performance.

       Several mechanisms are in place to  ensure a high-quality research program at EPA. The
EPA's Science Advisory Board (SAB), an  independent chartered Federal Advisory Committee
Act (FACA) committee, meets annually to conduct  an in-depth review and analysis of EPA's
Science  and Technology account. The SAB provides  its  findings to the  House  Science
Committee and sends a written report on the finding to EPA's Administrator after every annual
review. In addition, EPA's  scientific and  technical  work products undergo  either internal or
external  peer review, with major or  significant products requiring external peer  review. The
Agency's Peer Review Handbook (2nd Edition) codifies procedures and guidance for conducting
peer review.

STRATEGIC OBJECTIVES AND FY 2005 ANNUAL PERFORMANCE GOALS

Improve Compliance

       By 2008, maximize compliance to protect human health and the environment through
compliance  assistance, compliance  incentives, and  enforcement  by achieving  a  5 percent
increase  in the pounds of pollution reduced, treated, or eliminated,1 and achieving a 5 percent
'"Pounds of pollutants reduced, treated, or eliminated" is an EPA measure of the quantity of pollutants that will no longer be
released to the environment as a result of a non-complying facility returning to its allowable limits through the successful
completion of an enforcement settlement. (Facilities may further reduce pollutants by carrying out voluntary Supplemental
Environmental Projects.) On-line compliance information is available to the public via ECHO,


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increase in the number of regulated entities making improvements in environmental management
practices/ (Baseline to be determined for 2005.)

Improve Environmental Performance through Pollution Prevention and Innovation.

       By 2008, improve environmental protection and enhance natural resource conservation
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 barriers, and the adoption of results-based,
innovative, and multimedia approaches.

Build Tribal Capacity

       Through 2008, assist all federally recognized Tribes in assessing the condition of their
environment, help in building their capacity to implement environmental programs where needed
to improve Tribal health and environments, and implement programs in Indian Country where
needed to address environmental issues.

Enhance Science and Research

       Through 2008, strengthen the scientific evidence and research supporting environmental
policies and decisions on compliance, pollution prevention, and environmental stewardship.

HIGHLIGHTS

Improving Compliance

       The  Compliance  Assistance Program strategically targets areas where regulated entities
demonstrate  an  incomplete  understanding  of how they can best comply  with regulatory
requirements. The  Agency's support  of  industry  and  government sector  internet-based
Compliance  Assistance  Centers  greatly expands  the reach  of EPA's  compliance assistance
efforts.  It provides educational tools and other assistance, such as workshops and on-site  visits,
to help increase  understanding of regulatory obligations,  improve environmental management
practices and reduce pollution.

       Other  tools that are  used include  compliance incentives, voluntary  programs, and
innovative approaches designed to motivate  better  environmental compliance and performance
by individuals,  communities,  businesses and  industry  sectors.  The  Agency promotes self-
policing and improvement through incentives,  such as EPA's Audit, Small Business and  Small
Local Governments  policies  and the inclusion  of environmental management systems  in
enforcement actions.
^'Environmental management practices" refers to a specific set of activities EPA tracks to evaluate changes brought about
through assistance, incentives, and concluded enforcement actions. Implementing or improving environmental management
practices—for example, by changing industrial processes; discharges; or testing, auditing, and reporting—may assist a regulated
facility in remaining in compliance with environmental requirements. Further information on environmental management
practices is available at w\\^-.epa.gov/compliance/resources/pubiications/piaMiirig/'caseconc.pdf.

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       The Agency will continue to work with states and tribes to target areas that pose risks to
human  health  or  the  environment,  display  patterns  of  noncompliance,  or  include
disproportionately exposed populations.  Media-specific, industry sector and problem-based
priorities will be established for the national program, and will be developed in conjunction with
the Regional offices, with input from states, tribes, environmental justice representatives, and
other stakeholders.

       The Agency's Forensics Support Program provides technical support, including  field
sampling  and measurement; forensic analytical chemistry;  and  computer forensic  imaging,
restoration and analysis. The forensics team consistently provides high-quality data and analyses,
allowing the  Agency to  successfully investigate and prosecute  the nation's most complex
criminal and civil enforcement cases.

Improving Environmental Performance through Pollution Prevention and Innovation

       In the 1990's, through the Pollution Prevention Act, Congress formally established a
national policy to prevent or reduce pollution at its source whenever feasible.  The Act defines
P2 as ".. .the use of materials, processes, or practices that reduce the use of hazardous materials,
energy, water, or other resources and practices that protect natural resources through
conservation or more efficient use."3

       Major provisions of the Act include:

•      Providing matching funds for State and local P2  programs through the PPIS grant
       program to promote P2 techniques by businesses
•      Establishing a P2 strategy outlining the Agency's intent to promote  source reduction and
       collect data on source reduction
•      Operating a source reduction clearinghouse
•      Mandating P2 reporting as part of TRI

       There are also several Executive Orders that address Pollution Prevention. For example,
Executive Order 13101, titled Greening the Government through Waste Prevention, Recycling,
and Federal Acquisition, strengthens federal mandates  to protect the environment and promote
economic growth through the purchase of environmentally preferable products.4  Using the
purchasing power of the federal government  is one way  to help  improve  the  market for
environmentally  preferable,  recycled content,   and  bio-based products while protecting our
natural resources and providing an example for private industry.

       The Executive Order (EO) defines "environmentally preferable" as  "products or services
that have a lesser or reduced effect on human health and the environment  when compared with
competing products and services that serve the same purpose." The EO also  states that products
or services should be compared across the entire life cycle - from raw material acquisition to its
final disposal at its end of life. EPA has  several responsibilities under  the EO,  including
3 Pollution Prevention Act. U.S. Code Title 42, The Public Health and Welfare, Chapter 133, sec. 13101 b. Policy.
4 Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition - 63 Federal Register 49643.
September 16,1998.
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developing  guidance on  environmentally preferable  purchasing for federal agencies, and
assisting federal  agencies  with conducting  and documenting pilot  projects.  EPA has also
developed tools to assist federal purchasers,  including a database of environmental standards,
case study of federal pilot projects, model contract language and other resources.

       Reducing pollution at its source involves two types of changes in behavior: making the
greener products available, and increasing the demand for them. The Environmentally Preferable
Purchasing (EPP) Program works to harness the purchasing power of government to stimulate
demand for "greener" products and services, thereby fostering manufacturing changes. In FY
2005, the P2 program will shift resources to state grants and other P2 programs, which have
shown significant results. The P2 research program will be evaluated to improve its performance
and contribution to the Agency's P2 efforts.

       In FY 2005, the Agency  also  will  continue to identify environmental performance
standards by which products  can be evaluated, and invest in the development of tools, such as
life-cycle analysis tools that  businesses and purchasers can use to evaluate the environmental
performance of products. In  FY 2005, the Agency will continue to focus on providing tools,
resources  and  models  to  federal agencies  on a number of product  categories,  including
electronics, janitorial services, and meetings/conferences. EPA will also continue its efforts to
meet its own goals to green its own facilities and operations, including purchasing.

       The voluntary Green Suppliers Network (GSN) builds on the premise that cost effective
manufacturing, pollution prevention and environmental protection can be the result of good
business planning and practice.  The GSN uses the purchasing power of the private  sector to
achieve pollution prevention and manufacturing efficiencies throughout the supply chain. In FY
2005  the GSN  will continue  to develop  and  enhance partnerships  with  the  aerospace,
healthcare/pharmaceutical, office/home furniture, farm and construction, and automotive sectors.
The Agency expects to explore GSN with other federal agencies, replication of the program
internationally,  and working  with  new sectors,  such  as  the  truck/bus  and  appliance
manufacturing sectors.

       Through voluntary partnerships with academia, industry, and other government agencies,
Green Chemistry supports fundamental research in environmentally benign chemistry and
provides a variety of educational and international activities,  including sponsoring conferences
and meetings and developing tools.   The  Presidential Green Chemistry Challenge  Award
Program recognizes superior achievement in the design of chemical products, and continues to
quantitatively  demonstrate the scientific, economic, and  environmental benefits that  green
chemistry technologies offer.5 In FY 2005, the program will explore ways to increase the number
and effectiveness of incentives, and to reduce the barriers to mainstreaming green  chemistry
practices.

       Traditionally, engineering  approaches to pollution prevention have  been focused on
waste minimization and have not  addressed  such risk  factors as exposure, fate, and toxicity.
EPA's Green Engineering Program  promotes consideration of these, factors in the design,
commercialization, and  use of chemical products and the development of feasible, economical
5 U.S. EPA, Office of Pollution Prevention and Toxics, Green Chemistry Challenge. Accessed October 1, 2003. Available at
http^Vwwy.epa.gov/greenchemistry/index.html.


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processes that minimize generation of pollution at the source.  In FY 2005, the program will
focus on the  implementation of specific  activities that provide  quantifiable  environmental
benefits, particularly  in industrial applications.  The program  will continue to partner with
research institutions on their green engineering/sustainable research projects and collect data on
the application of Green Engineering approaches and tools, with an emphasis on gathering
information from people and organizations that have already received green engineering training
and have adopted green engineering approaches.

       The Design for the Environment Program will continue to work with industry sectors to
reduce  risks  to human health and the  environment, improve performance, and save costs
associated with existing and alternative pollution prevention technologies or processes.  In FY
2005, the program expects to initiate one to  three new  projects.  The program will also
implement, as part  of any  new partnership building activities,  evaluation guidelines  for
developing and collecting measures, building on program-wide analysis and evaluation that will
be completed in FY 2004.

       Pollution Prevention State Grants  provide funds to build pollution prevention strategies
into  State government  environmental protection programs, encourage innovative and non-
regulatory pollution  prevention solutions  and encourage  government/industry partnerships.
Pollution Prevention State Grants are unique within EPA because they address cross-media  and
multi-media environmental impacts at the  source, rather than end-of-pipe.

       The Agency's  innovation programs are demonstrating significant results.  For example,
in FY 2003, The Performance  Track Program  added 61  new members, bringing the total
number of members  to 320.  The  Program's first  progress report  showed that hi FY 2001
Performance Track facilities reduced energy use by 1.1 million  MMBTUs, reduced hazardous
materials use by 908 tons, and increased  their use of recycled and reused materials by 10,823
tons,  (www.epa.gov/sectors/)

       EPA expanded its partnerships with industry sectors in FY 2003. Eight new  sectors
(agribusiness,  cement manufacturing,  colleges and universities, construction,  forest products,
iron and steel manufacturing, paint and coatings, and ports)  committed to work collaboratively
to improve environmental management while also addressing regulatory and other barriers to
improve performance  and increase efficiencies, (www.epa.gov/sectors/)

       Past performance demonstrates remarkable progress  in delivering results.  For example,
in FY 2003, EPA assisted more  than ten states in continuing support of twenty-one innovative
projects approved in  previous years  and in approving  eight new innovative projects. These
projects achieved a broad range  of efficiency gains by: enhancing the infrastructure to recycle
electronic waste, strearnliriing permitting, better coordinating non-point and  point sources to
meet  Total Maximum Daily Loads, supporting streamlined state authorization procedures,  and
improving compliance monitoring  for small drinking water systems.   These projects' also
invested in less energy demanding alternative technology at  pulp and paper facilities, alternative
landfill technology to  increase landfill capacity, and increased recycling of hazardous wastes.

       During the same year, EPA also awarded grants to three states to test innovative concepts
in permitting. First, the funding provided  under the State Innovation Grant Program allowed the
State of Arizona  to  develop a web-based,  "intelligent" screening  and permit application

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program for storm water permits that will  increase the  efficiency of the permitting process.
Second, Delaware will develop  an  auto body sector Environmental Results Program (ERP)
modeled after other state ERP projects, such as Rhode Island and Florida. The Delaware ERP
project  expects  to  significantly improve  environmental compliance  in  hundreds of small
businesses state-wide. Third, Massachusetts will develop a watershed-based permitting program
to improve water quality on a National Heritage Waterway.

       The Environmental Results Program model that originated  in  Massachusetts has
expanded to seven other states and the District of Columbia   with projects being implemented
across seven business sectors: dry cleaners, printers, photoprocessors, auto repair facilities, auto
salvage yards, auto body shops, gasoline stations (underground storage tanks and Stage II vapor
recovery systems).

Research

        In  FY  2005, the Agency  will  continue  its systems-based  approach to pollution
prevention, which will lead to a more thorough assessment of human health and environmental
risks  and a more comprehensive management  of those risks.  EPA  will  improve FY 2005
performance measures to prevent pollution at its source and continue to evaluate a small set of
environmental technologies through the Environmental Technology Verification (ETV) program.
ETV is a voluntary, market-based verification program for commercial-ready technologies.  In
FY 2005, the ETV program will complete 15 additional verifications and two testing protocols.
In addition, the program will evaluate whether verifications and testing protocols have led to
increased use of environmental technologies.

       Additionally,  through the National  Environmental Technology Competition (NETC),
based  on results from  field demonstrations of one-year in duration, EPA will recognize
innovative technologies that cost-effectively remove arsenic from drinking water to help small
communities meet the new arsenic drinking water standard.   Other work includes research on
market mechanisms and incentives that will support investigations that explore the conditions
under which financial and other performance incentives will achieve environmental objectives at
a lower cost or more effectively than traditional regulatory approaches.

EXTERNAL FACTORS

       The Agency's Enforcement and Compliance Assurance  Program's ability  to meet  its
annual performance goals may be affected by a number of factors. Projected performance could
be  impacted by  natural catastrophes,  such as  major floods or significant chemical spills,
requiring a redirection of resources to address immediate environmental threats.  Many of the
targets are coordinated with and predicated on the assumption that state and Tribal partners will
continue or increase their levels of enforcement  and compliance work.  In addition, successful
conclusion of EPA's enforcement relies on  the Department of Justice to accept and prosecute
cases.  The success of EPA's activities hinges on the availability and applicability of technology
and adequate  resources to modernize  and maintain our information  systems.   Finally,  the
regulated community's willingness to comply with the law will greatly influence EPA's ability to
meet its performance goals.
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       Other factors, such as the number of projects subject to scoping requirements initiated by
other federal agencies, the number of draft/final documents (Environmental Assessments and
Environmental Impact Statements) submitted to EPA for review, streamlining requirements of
the Transportation Equity Act for the 21st Century (TEA-21), and the responsiveness of other
federal agencies to environmental concerns raised by EPA, may also impact the Agency's ability
to meet its performance goals.  The  NEPA Compliance workload is driven by the number of
project  proposals  submitted  to EPA for funding or  NPDES  permits that  require  NEPA
compliance, including the Congressional projects for wastewater, water supply and solid waste
collection facility grants which have increased in recent years.

       In the area of pollution prevention, the Agency's work is almost  entirely dependent on
voluntary partnerships, collaboration, and persuasion, since there  are  few environmental
regulations that set specific source-reduction  requirements.  The Design for the  Environment
Program seeks partnerships with industry trade associations to engage jointly in the development
and marketing of products  that generate less pollution.   The Green Chemistry  Program
challenges  industry  and  the  academic  community  to step  forward with  new chemical
formulations that pose fewer risks to human health and the environment.  EPA's  strategy of
"greening the supply chain" depends on the willingness of large manufacturers to  voluntarily
require their suppliers to provide environmentally preferable products.  These efforts all depend
on our partners'  continued willingness to cooperate in joint endeavors that may not realize an
immediate payoff.  EPA's ability to carry out its voluntary pollution prevention initiatives could
be reduced if partners begin to believe that the initiatives are not worthwhile, are too risky, or are
otherwise contrary to their best interests. Historically however, this has not been the case, and the
Agency and industry have worked well together to reduce pollution.

       Finally, our evolving  user community  will also affect the success of our information
efforts.   As more states  and  Tribes develop the  ability  to  integrate their environmental
information, we  must adjust EPA's  systems to ensure that we are able to  receive and process
reports  from  states  and  industry   under Agency  statutory  requirements. Local  citizens'
organizations and the public at  large are also increasingly involved in environmental decision-
making,  and their need  for information and more sophisticated analytical  tools is growing.
Further,  shrinking state budgets have underscored the critical need for the  State Innovations
Grants Program.

       EPA's  policy has been, and continues to be, that  Tribes  develop  the  capability to
implement federal programs themselves.  However, in working  with Tribes,  EPA has realized
that "Treatment as a State" (TAS) may not suit the needs of all Tribes.  Some Tribes with acute
pollution sources and other environmental problems may be too small to support fully delegated
or approved environmental programs. Other Tribes are wary of seeking TAS status because it
may lead to costly litigation that may in turn lead to a diminishment of Tribal sovereignty. In the
absence  of EPA-approved Tribal  programs, EPA  generally  faces  practical  challenges in
implementing the federal programs in Indian Country. EPA will continue to encourage and work
with. Tribes to develop their capability to implement Federal environmental programs.

       Achieving  our objectives  for Indian Country is  based upon a partnership with Indian
Tribal governments, many of which face  severe poverty, employment, housing and education
issues.  Because Tribal Leader and Environmental Director support will be critical in achieving
this objective,  the Agency is working with Tribes to ensure that they understand the importance

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of having  good  information on  environmental conditions  in Indian Country and  sound
environmental capabilities.  In addition, EPA  also works with other Federal  Agencies,  the
Department of Interior (US  Geological Survey, Bureau of Indian Affairs, and  Bureau of
Reclamation), the National Oceanic and Atmospheric Administration, the Indian Health Service
and the Corps of Engineers to help  build programs on Tribal lands. Changing priorities in these
agencies could impact their ability to work  with EPA in establishing and  implementing
strategies, regulations, guidance, programs and projects that affect Tribes.

       Strong science  is predicated on  the desire of the Agency to make human  health and
environmental decisions based on high-quality scientific data and information. This challenges
the Agency to perform  and apply the best available science and technical analyses  when
addressing  health and environmental problems that adversely impact the United States. Such a
challenge moves the Agency to a more integrated, efficient, and effective approach of reducing
risks. As long as high quality science is a central tenant for actions taken by the Agency, then
external factors will have a minimal impact on the goal.
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                     Compliance and Environmental Stewardship

OBJECTIVE: Improve Compliance

      By 2008, maximize compliance to protect human health and the environment through
compliance assistance, compliance incentives, and  enforcement by achieving a  5 percent
increase hi the pounds of pollution reduced, treated,  or eliminated,  and achieving a 5 percent
increase in the number of regulated entities making improvements in environmental management
practices. (Baseline to be determined for 2005.)

                                Resource Summary
                                (Dollars hi Thousands)

Improve Compliance
Building & Facilities
Environmental Program & Management
Hazardous Substance Superfund
Inspector General
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY2003
Actuals
$395,964.4
$3,312.5
$346291.1
$16,436.1
$1,475.2
$268.0
$28,181.5
2,555.4
FY2004
Pres. Bud.
$418,998.2
$5,158.7
$371,655.6
$13,056.6
$1,827.3
$0.0
$27,300.0
2,529.4
FY2005
Pres. Bud.
$431,695.1
$4,149.5
$383,218.7
$15,116.8
$1,910.1
$0.0
$27,300.0
2,587.4
FY 2005 Req. v.
FY 2004 Pres Bud
$12,696.9
($1,009.2)
$11,563.1
$2,060.2
$82.8
$0.0
$0.0
58.0
                                  Program Project
                               (Dollars in Thousands)

Categorical Grant: Pesticides Enforcement
Categorical Grant: Toxics Substances
Compliance
Categorical Grant: Sector Program
Compliance Monitoring
Criminal Enforcement
Enforcement Training
Compliance Incentives
Compliance Assistance and Centers
Civil Enforcement
International Capacity Building
Homeland Security: Critical Infrastructure
Protection
Administrative Projects
TOTAL
FY 2003
Actuals
$20,341.8
$5,229.8
$2,609.9
$56,567.5
$40,448.5
$4,661.5
$9,589.0
$25,054.3
$100,366.7
$1,460.7
$4,181.1
$125,453.6
$395,964.4
FY 2004
Pres. Bud.
$19,900.0
$5,150.0
$2,250.0
$58,155.0
$38,076.8
$4,038.6
$9,257.2
$27,205.8
$108,318.4
$1,051.5
$3,901.9
$141,693.0
$418,998.2
FY 2005
Pres. Bud.
$19,900.0
$5,150.0
$2,250.0
$62,216.7
$39,990.7
$4,058.1
$9,370.7
$27,759.1
$113,030.5
$862.4
$3,972.4
$143,219.5
$431,695.1
FY 2005 Req. v.
FY 2004 Pres Bud
$0.0
$0.0
$0.0
$4,061.7
$1,828.9
$19.5
$113.5
$553.3
$4,712.1
($189.1)
$70.5
$1,526.5
$12,696.9
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FY 2005 REQUEST

Results to be Achieved under this Objective

       The Enforcement and Compliance Assurance Program has been the centerpiece of the
Agency's efforts to provide a deterrent to pollution by ensuring compliance with environmental
laws and regulations, and  has  achieved  significant improvements in public  health and  the
environment. The Enforcement and Compliance Assurance Program works together with states
and tribes to identify and  address violations of environmental statutes and regulations.  By
improving   compliance   with  standards,  permits  and  other  established  requirements,
environmental problems and their associated risks are either mitigated or avoided altogether.

       The universe of private, public, and federal facilities regulated by the Agency under the
various statutes is extremely large and diverse. The EPA will maximize its  effectiveness by
strategically targeting its compliance  and  enforcement activities to address significant risks to
human health and the environment, and those that impose a disproportionate burden on  certain
populations. A strong compliance and enforcement program achieves environmental protection
by  identifying noncompliance problems,  holding  violators accountable,  and deterring future
violations, while ensuring a level economic playing field for all regulated entities.

       State, Tribal, and  local governments bear much of the  responsibility for  ensuring
compliance. EPA will continue its efforts to cooperate with these entities, as well as other  federal
agencies, to promote environmental protection. Further, EPA will cooperate with other nations to
enforce and ensure compliance with international agreements  affecting the environment. These
activities will also ensure a level economic playing field in an increasingly global trading system.

       The Enforcement and Compliance Assurance Program employs a "smart enforcement"
approach to achieve its goals of cleaner air, purer water,  and better protected  land. Smart
Enforcement is  the  use  of the appropriate  enforcement and  compliance  tools  to address
significant problems to achieve strong environmental outcomes. The Agency employs integrated
strategies that use data analysis,  compliance assistance and incentives, monitoring, and civil and
criminal enforcement to achieve  environmental results.

       In FY 2005,  the Agency's Enforcement  and  Compliance  Assurance Program will
measure its performance not only in terms of outputs such as number of inspections, enforcement
actions and  compliance assistance activities, but also hi terms of outcomes such as pollutants
reduced, increased understanding of regulatory requirements,  and  unproved facility practices.
The FY 2005 Annual Performance Plan contains annual goals and measures to show improved
compliance  and  positive  behavioral  changes resulting  from  compliance  assistance  and
enforcement efforts.  These measures  complement  traditional  enforcement and portray  a more
complete picture of the results of the Enforcement and Compliance Assurance Program.

       The President's Management Agenda has put increasing emphasis on programs' use of
performance measures, particularly outcome  measures, and  the use of efficiency measures.
OMB's Program Assessment Rating Tool (PART) program reviews, started hi FY 2002, are now
the primary mechanism for measuring the performance of federal programs. The PART guidance
for FY 2002 and FY 2003 identifies the need for programs to  have long-term  and  annual
efficiency measures.  OMB  is also using the PART assessment to determine the success of an

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Agency in integrating budget  and performance;  one of the five areas in the President's
Management Agenda. PART assessments of the Civil Enforcement Program were completed in
FY 2002 and FY 2003. These assessments are to be reflected hi the FY 2004 and FY 2005,
process. A PART assessment of the Criminal Enforcement Program was completed in FY 2003.

       For FY 2005, the civil and criminal enforcement programs will use pounds of pollutants
reduced per FTE for both program's efficiency measures.  Since achievement of the civil and
criminal  enforcement program's  annual and  long-term goals are highly dependent on  the
enforcement cases  concluded in a given year, there can be significant variability in a measure
from one year to the next. To partially address this variability, this efficiency measure is based
on three-year rolling averages.

       In FY 2005,  the Office of Enforcement  and Compliance  Assurance will  increase its
enforcement staffing level by 54 FTE. This  increase will ensure that the  enforcement and
compliance assurance program continues  to address significant environmental problems, to
obtain the best environmental outcomes (e.g., reducing pollutant loadings from the environment)
for the public. These resources will also increase the velocity of compliance through the use of
integrated  strategies—compliance assistance,  compliance  incentives,  and enforcement— to
achieve compliance.

Compliance Assistance

       The Compliance  Assistance Program provides information, training and  technical
assistance  to the  regulated community to  increase  its  understanding of all statutory and
regulatory  environmental  requirements,  thereby  gaining  measurable improvements  in
compliance and reducing risk to human health and the environment. The program also provides
tools, training and assistance to other compliance assistance providers, enabling them to more
effectively help the regulated community comply with environmental requirements. The program
will continue to develop and implement integrated compliance assurance strategies to support
improving  compliance within specific industrial, commercial and government sectors, or with
certain regulatory requirements.

       EPA will continue to  develop  compliance assistance tools and provide  these to  the
regulated community,  utilizing  stakeholder workgroups comprised  of regulators and trade
associations to  develop and distribute  these tools. Compliance tools cover a wide variety of
assistance vehicles. Assistance is provided in the forms of plain-language guides, comprehensive
sector-based documents (e.g. Sector Notebooks  on industry-specific  manufacturing  processes
and pollution issues), environmental audit protocol manuals, fact sheets, checklists, newsletters,
our web-based  clearinghouse, and  interactive,  virtual,  sector-based  compliance assistance
centers.

       In FY 2005, EPA will tailor the Agency's role in direct delivery of compliance assistance
to focus on targeted initiatives for particular  sectors, or environmental problems of national
significance. As part of a strategic compliance  assistance program,  the Agency will conduct the
following activities to improve results: build  a  network of compliance  assistance providers;
distribute tools to  providers that work more directly with the regulated community;  provide
training to address sector-specific and regulatory compliance issues; convene a compliance
assistance  forum to share best  practices; engage in priority setting;  provide leadership on

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compliance assistance outcome measurement; develop guidance to encourage use of consistent
compliance assistance measures and a new integrated compliance assurance database; develop
new compliance assistance materials; coordinate a federal roundtable for compliance assistance
programs; and maintain a clearinghouse of compliance assistance materials available from
federal, state and local governments and trade associations.  EPA will continue to work with
stakeholders to identify compliance assistance needs and improve planning with states.  EPA will
compile Agency and state activities in the Compliance Assistance Activity Plan. Through public
outreach press releases and newsletters, EPA will publicize its compliance assistance efforts and
help the regulated community anticipate and prevent violations of federal environmental laws.

       Compliance Assistance Centers are a key component of EPA's efforts to help small and
medium-sized  businesses  and  governments  to  understand,  and  comply  with, federal
environmental requirements. The centers provide one-stop shopping for regulatory and technical
assistance,  pollution prevention activities,  and  other information particularly suited to  the
individual sectors. Operated  in partnership  with industry associations, environmental groups,
universities, and other governmental agencies, the Centers are  accessible through Internet web
sites as well as toll-free telephone assistance lines.

       EPA has ten mature Compliance Assistance Centers, and three recently  established
centers for the auto salvage,  construction, and US-Mexican Border sectors. In FY  2005, EPA
will continue to develop  three new  centers.  Possible  new  centers  include plastics, fuels
management,  or marina/boat repair. The  Agency will also  continue to measure the centers'
success hi improving users' understanding of environmental requirements; changes in facility
management practices; and pollution reduction behaviors.

       The Agency will also continue to support, implement, and improve the Compliance
Assistance  Center Platform (Platform). The Platform is  a suite of comprehensive web-based
tools necessary to create new, full-featured centers; it is a base for launching new sector-specific,
topical, and geographic  Internet-based compliance assistance centers. The  Platform ensures
efficient integration of technology and content and reduces the financial barriers to creating new
centers.

       In FY 2005, the Agency will continue to  improve and expand local -and state-specific
information (e.g., state regulatory requirements) in the new and existing Centers. EPA will also
continue to integrate  the centers and  clearinghouse with the  "Business Gateway" Initiative,
formerly the "Business Compliance Assistance One-Stop"  (One-Stop) Initiative,  one of the
President's 24 e-government initiatives. Visitors to the One-Stop website will be  directed to
applicable compliance information through a customized "user profiler."

       EPA will measure changes hi understanding, facility management practices, and levels of
pollution reduction resulting from targeted compliance assistance. This ongoing measurement
and analysis will improve the effectiveness of the Compliance Assistance Program. For example,
EPA will use  surveys to measure the outcomes of the use of compliance assistance  centers and
the  clearinghouse, on-site  assistance  visits,  workshops,  training  and  the Environmental
Assistance  Summit (formerly the Compliance Assistance Providers Forum). EPA continues to
refine  data elements, to ensure a smooth transition from the Reporting Compliance Assistance
Database (RCATS) to the Integrated Compliance Information System (ICIS). During FY 2005,
compliance assistance data elements will be refined and reported into ICIS.

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       The Federal Facility Enforcement Program will continue to provide technical guidance to
other federal agencies on compliance with executive orders, pollution prevention requirements,
and applicable environmental laws. EPA will also continue working with other federal agencies
to establish and support a new Federal Facilities Stewardship and Compliance Assistance Center
hi FY  2004.  EPA  will  work  in partnership with  other federal  agencies, to  implement
environmental management  systems, and  will conduct environmental management review at
specific federal facilities.

Compliance Incentives

       EPA will continue to  implement  EPA's Audit/Self-Policing Policy, Small Business
Compliance Policy, and Small  Local Governments Policy as core elements of the Enforcement
and Compliance Assurance  Program. EPA's  Audit/Self-Policing Policy encourages corporate
audits and subsequent correction of self-discovered violations, providing a uniform enforcement
response toward disclosures  of violations. Under the Audit Policy, when companies voluntarily
discover and promptly correct environmental violations, EPA will waive or substantially reduce
gravity-based civil penalties.

       EPA is currently working on many efforts to encourage corporate self-disclosures, with a
special emphasis on the telecommunications, petroleum, iron and steel industries. Through FY
2003, approximately 2,500 entities have disclosed violations at 7,848 facilities. The Agency will
continue to expand use of the Audit Policy through aggressive outreach  to particular industries.
EPA actively encourages disclosures at multiple facilities owned by the same regulated entity,
because  such disclosures allow an entity  to review their operations holistically, which  more
effectively benefits the environment.

       The  EPA Small Business  Compliance Policy is intended to promote environmental
compliance among small  businesses by providing them with special incentives, such as penalty
reductions to use compliance  assistance and  other voluntary  means to identify,  disclose, and
correct violations. This policy meets EPA's obligations, under the Small  Business Regulatory
Enforcement Fairness Act, to provide a penalty reduction program for small  entities. EPA has
worked with stakeholders to modify the policy to encourage greater participation.  As part of its
FY 2005 outreach activities,  EPA is  working with small  business  compliance  assistance
providers to develop tools to  assist  small businesses  in  better understanding applicable
environmental requirements  and to take advantage of the flexibility the policy offers. EPA will
provide incentives for states and communities to utilize  the policy, with the option to establish an
environmental management system to resolve violations.

       In FY 2005,  the Compliance  Incentives  Program continues to  promote  the use of
environmental management  systems (EMS), including ISO 14001. The EMS offer companies
and other regulated entities an innovative approach to minimizing environmental  impacts by
integrating environmental concerns into business decisions and practices. EPA works with a
variety of stakeholders to promote the use of EMS, and to explore ways  in which regulators can
encourage  the  use  of the EMS  to  enhance  environmental  performance. Domestic  and
international partners include  federal  agencies,  state  and local governments, industry, non-
governmental  organizations,  and  the North  American Commission  for Environmental
Cooperation. Executive Order 13148 requires Federal agencies to establish an EMS by 12/31/05.

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EPA work in partnership with other Federal  agencies to implement EMSs at these Federal
facilities. In addition, EPA will conduct Environmental Management Reviews (EMR) at specific
facilities.

       The Agency also works  to  enhance market incentives for responsible environmental
performance. Disclosure of environmental  information  promotes responsible  behavior and
ensures that markets value environmental performance. The United States securities regulatory
system  relies  on registrants'   full disclosure  of  information,  including  the registrant's
environmental liabilities, to current and potential shareholders as a primary means of ensuring
informed  investments  and the proper functioning of the market. EPA's Enforcement and
Compliance Assurance  Program notifies parties to EPA-initiated  administrative enforcement
actions of their potential duty  to  disclose the  proceeding to the Securities and Exchange
Commission  (SEC).  In FY 2005, EPA continues  to  promote the full and fair  disclosure  of
environmental information to the public in accordance  with the SEC's  requirements, and
facilitates the public's use of this information to positively influence environmental performance.

Compliance Monitoring

       The Agency reviews and evaluates the activities of the regulated community to determine
compliance with applicable laws, regulations, permit conditions, and settlement agreements, and
to determine  whether conditions presenting imminent and substantial endangerment to human
health  or the environment  exist.  The majority of  work years  devoted to the compliance
monitoring program are provided to the Regions to conduct investigations, on-site compliance
inspections and evaluations. Evaluations  include monitoring, sampling, and emissions testing.
The program staff also reviews performance reports  submitted by sources.

       Compliance monitoring  activities are environmental media- and  sector-based. The
traditional media-based inspections  and  evaluations are conducted to  supplement  those
performed by States and Tribes and to implement programs that are not delegated to States and
Tribes. These compliance inspections and evaluations are key to meeting annual and long-term
goals established for air, water, pesticides, toxic substances, and hazardous waste in  the EPA
Strategic Plan. Multi-media approaches such as cross-media inspections and evaluations,  sector
initiatives, and risk-based targeting, allow the Agency to take  a more  holistic approach  to
protecting ecosystems and to solving the more intractable environmental problems. EPA also
monitors  compliance by Federal facilities with environmental  regulatory requirements and
executive orders, as well as conducting single- and multi-media inspections and evaluations.

       In FY 2005, EPA plans to conduct approximately 18,500 inspections, evaluations, and
civil and  criminal investigations. These activities  will be targeted to areas that pose risks  to
human  health  or  the  environment,  display   patterns of  noncompliance,  or   involve
disproportionately-exposed populations. EPA is working with States and Tribes to identify where
these inspections and evaluations will have the greatest impact on achieving  environmental
results.
       In FY 2005, the Agency will begin measuring  the  percentage  of regulated entities
working  towards  compliance, as  a result of our monitoring activities. This  measure will
demonstrate  that EPA's compliance monitoring identifies potential violations  and promotes
facilities to take  immediate action to address the  violations early to  achieve compliance. As
reported  in the FY 2002 Annual Performance Report, analysis of compliance inspections and

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evaluations showed that (in  the  limited inspection programs studied) 50%  resulted in the
identification of potential environmental violations, and 10% showed that immediate action was
taken to address environmental and human health risks.

       Maintaining an effective inspection and evaluation program depends on a well-trained
workforce. In order to maintain EPA's expertise in field monitoring and to ensure compliance
with EPA Order 3500.1, the Agency supports development of inspector  manuals,  training
modules, and delivery systems for training Regional, State, and Tribal inspectors and program
managers. The EPA Order 3500.1  establishes consistent Agency-wide training and development
standards for EPA employees  leading environmental compliance inspections/field investigations
to ensure that they   have working  knowledge of regulatory requirements,  inspection and
evaluation methodologies, and health and safety procedures. The Order consists of a three-level
training program for EPA compliance inspectors/field investigators: Occupational Health and
Safety Curriculum, Basic Inspector Curriculum,  and  Program-Specific Curriculum.  EPA
compliance inspectors/field investigators must complete the required training before leading a
compliance inspection/field investigation.

       Training  materials developed may include sampling tools, use of EPA's information
systems and other new technologies, and guidance for conducting inspections. This is especially
critical as EPA moves to formal electronic signature processes (forms and reports that can be
filled out electronically and certified as legal documents). The Order also serves as a potential
model to states, tribes and local environmental  agencies that may want to develop their own
inspector training program. In addition, under EPA's Guidelines for Issuing Federal Credentials
to States  and Tribes,  they will need to complete minimum training which will parallel the
requirements for Federal EPA inspectors. To  ensure that training is available, EPA will need to
develop and make available training materials and course modules in the media programs.

       In  FY 2005, EPA will continue to review and respond to 100 percent of the notices for
trans-boundary movement of hazardous waste, ensuring that these wastes are properly handled in
accordance with international agreements and Resource Conservation and Recovery Act  (RCRA)
regulations. Through analysis of notices, manifests, tracking documents, and annual reports, EPA
monitors compliance  with relevant regulations  and takes enforcement actions as necessary.
While the vast majority of the hazardous waste trade occurs  with Canada, the U.S.  also has
international trade agreements with Mexico, Malaysia, Costa Rica and member countries of the
Organization for Economic Cooperation and Development (OECD). In calendar year 2003, EPA
responded to 1,170 notices (representing 446 import notices and 724 export notices) regarding
8,247 distinct waste streams.

       In  FY 2005, the compliance monitoring program will focus on the national  program
priorities  established  through the Office  of Enforcement and Compliance Assurance's FY
2004/2005 Memorandum of Agreement. New priorities will be developed for FY 2005, based on
recommendations from the EPA's Planning Council, regions, states, and tribes responsible for
operating  compliance  monitoring  programs. These priorities may be geographic, sector-based,
media-based or focused on specific regulatory programs
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Civil Enforcement

       The Agency's Civil Enforcement Program addresses violations of environmental laws, to
ensure that  violators  come  into compliance with these laws and  regulations. The program
achieves the Agency's environmental goals through consistent, fair and focused enforcement of
all environmental statutes. The overarching goal of the civil enforcement program is to protect
human health and the environment, targeting its actions according to degree of  health and
environmental risk. Further, it aims to level the economic playing field by ensuring that violators
do not realize an economic benefit from noncompliance, and seeks to deter future violations.

       To accomplish these goals,  the  Civil Enforcement  Program is responsible for  the
development, litigation, and  settlement of administrative  and civil judicial cases against serious
violators of priority environmental laws. The federal program will focus its resources  on national
program priorities,  including environmental and  human health  problems,  trans-boundary
pollutants, and multi-state industrial violators. The Federal facilities enforcement program will
continue to  expeditiously pursue enforcement actions at Federal  facilities where  significant
violations are discovered.

       In FY  2005, program management will provide direction,  set goals and priorities, and
evaluate and review the national enforcement program. Enforcement and compliance staff will
develop guidance and policy for technical evaluations,  investigations, and case development
strategies that may include the use of injunctive relief, supplemental environmental projects, and
other civil penalties as appropriate. Further, enforcement staff will participate in the development
or revision of regulations and interpretive guidance.

Criminal Enforcement

       The  criminal  enforcement  program  brings to  bear the  Agency's  most  powerful
enforcement tool against the most significant environmental violations. By demonstrating that
the regulated community  will be held accountable  for serious, willful statutory violations in
terms of jail sentences and  criminal fines, the program acts  to forcefully deter violations of
environmental laws and regulations  hi a way that civil judicial and administrative enforcement
might  not  achieve.  EPA's  special  agents,  located   nationwide,  will  conduct  criminal
investigations, develop information to support grand jury inquiries and decisions, and work with
other law enforcement agencies to present a highly visible and effective force in the Agency's
enforcement strategy. Cases are referred to  the Department  of Justice for prosecution, with
special agents serving as key witnesses in these judicial proceedings. The criminal enforcement
program places particular emphasis on cooperation with state and local law enforcement through
participation hi task forces and enhancing capacity through specialized training  and  community
policing efforts.

       EPA's efforts to work more closely and cooperatively with industry are complemented by
the criminal enforcement  program.  The Agency is sending a clear message to the  regulated
community that  those who  choose  to  cooperate  hi good faith will reap the benefits of that
partnership.  Those  whose noncompliance  is distinguished by culpable conduct  can  expect
criminal investigation and prosecution. In FY 2005,  EPA estimates that it will conduct 400
criminal investigations of traditional environmental  crimes targeted  to areas that pose risks to
human  health  or  the   environment,  display  patterns of noncompliance,  or  include

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disproportionately exposed populations. EPA will also continue to develop and deploy a secure
network for proper handling of confidential law enforcement information used in the criminal
program.

Homeland Security

       The enforcement program provides investigative and training support to EPA's efforts,
and activities with other Federal law enforcement partners in support of homeland security. The
program maintains a National Counter Terrorism Evidence Response Team to coordinate with
FBI Headquarters and field offices in response to Homeland Security incidents; and a Homeland
Security/Counter Terrorism team, which responds directly to both the National Contingency Plan
and the enforcement program's technical needs. These teams may also respond to requests from
the U. S. Secret Service to provide on-site criminal investigative  and technical support at
designated National  Special Security Events  (i.e. national political conventions,  international
events, etc.) In FY 2005, the program will scale down its previous counter-terrorism  efforts to
focus on regular criminal enforcement issues.

Enforcement Training

       The Agency's enforcement training program is mandated by the Pollution Prosecution
Act to provide environmental enforcement training nationally through the National Enforcement
Training Institute (NETI). The program oversees the design of core and specialized enforcement
courses and their delivery to lawyers, inspectors, civil and criminal investigators, and technical
experts. In FY 2005, the program will develop and deliver training to support national teams
formed to address national enforcement priority areas, and continue to develop and enhance a
training center on the Internet.  "NETI Online" offers timely, targeted technical training courses
to a  nation-wide and international audience. The site also provides for tracking individual
training plans as well as developing and managing the program's training delivery processes.

       The Agency also provides specialized classroom training in criminal environmental law
enforcement  at  the  Department  of Treasury's  Federal  Law Enforcement  Training  Center
(FLETC)  in Glynco,  GA. FLETC develops and delivers basic and advanced training to EPA
Special Agents and their state, local, and Tribal partners across the United States and in selected
counties worldwide.  FLETC provides one of the few opportunities for state,  local, and Tribal
enforcement professionals to obtain criminal investigation training. In FY 2005, the enforcement
training program will  enhance opportunities for experiential training  with the continued
development of a practical exercise site at its NETI-West facility in Denver, Colorado.

State and Tribal Assistance Grants

       A  strong  state and Tribal enforcement and compliance assurance presence is essential to
EPA's long-term strategic plan objective to  identify and reduce significant noncompliance in
high priority areas while maintaining a strong enforcement presence in all regulatory program
areas. Most of the Nation's environmental laws envision a strong role for state governments in
implementing and managing  environmental  programs. In FY 2005,  the  Enforcement  and
Compliance  Assurance  Program will continue  to  support state  agencies implementing
authorized, delegated, or approved environmental programs.  Consistent with regulations and
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Agency policy, EPA will provide an appropriate level of oversight and guidance to states to
ensure that environmental regulations are fairly and consistently enforced across the Nation.

       EPA works with  Indian  tribes  on  a government-to-government  basis  to  identify
enforcement, compliance assistance, and capacity building issues affecting Tribal lands. The
Agency's  goal is to help  tribes develop their own enforcement and compliance assistance
programs  so that they can assume greater management of environmental programs in Indian
Country. In FY 2005, the Enforcement and Compliance Assurance Program will continue
implementation of the Tribal Strategy hi order to direct compliance monitoring and compliance
assistance capacity-building efforts. By monitoring and evaluating  progress made, EPA will
ensure that the plan's commitments are met  hi a timely fashion. These  efforts will help
implement EPA's  1984  Indian Policy in which EPA works  with Tribal governments as full
partners to enhance protection of public health and the environment on Tribal lands.

       The state and Tribal grant programs are designed  to build environmental partnerships
with states and tribes to strengthen their ability to  address environmental and public health
threats. These threats include contaminated drinking  water, pesticides in food, hazardous waste,
toxic  substances, and air pollution. In FY 2005,  the Enforcement and Compliance Assurance
Program  will  continue  to  award  state  and  Tribal  enforcement grants  to  assist  in the
implementation of the compliance and enforcement provisions of the Toxic Substances Control
Act (TSCA) and the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA). These grants
support state and Tribal compliance and enforcement activities to protect the environment from
harmful chemicals  and pesticides. The enforcement component of RCRA state grants is also
included in this objective.

       Under the Pesticides Enforcement Grant Program, EPA provides resources to states and
Indian tribes  to conduct FIFRA compliance inspections  and  take appropriate enforcement
actions, and implement programs for farm worker protection.

       States receive toxic substances grant funding  for compliance inspections of asbestos and
PCBs and for implementation of the state lead abatement enforcement program. The funds will
complement other  Federal  program grants for building state capacity for lead abatement, and
enhancing compliance with disclosure, certification and training requirements.

       EPA has maintained  a multi-media grants program for  states and tribes over the last
several years to build or improve compliance capacity within the Agency's regulatory partners
and to foster innovation. The Agency establishes annual funding priorities for the multi-media
grants program, including improving compliance  data quality; modernizing  data systems;
improving public access to enforcement and compliance data; improving outcome measurement;
supporting state and  Tribal inspector  training  and field testing  innovative  approaches to
compliance monitoring. The grants and/or cooperative agreements are competed nationally and
each funding priority is targeted at enhancing state and Tribal capacity and capability or needs
identified  by states, tribes or state and Tribal associations.

       The Agency will also continue providing single media enforcement grants to states that
are funded under other environmental goals supporting air and water programs as well as RCRA
and multi-media funds  to the Regions  specifically for Tribal  enforcement and compliance
activities.

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International Capacity Building

       The strategic mission and objectives of the international enforcement program promote
international and border environmental  security through enforcement and compliance. The
international program fosters cooperation  with  foreign countries of strategic  interest to the
United States, as prescribed in treaties and trade agreements, through capacity building activities.
Data about trans-boundary movements  of regulated substances and wastes  are  integrated,
analyzed and  used to  promote international environmental  enforcement. Achieving these
strategic  objectives and  environmental  benefits requires an  EPA  enforcement presence to
effectively  implement  international  commitments for  cooperation  in  enforcement  and
compliance activities with other countries, especially those along the U.S. border. Through such
arrangements, EPA works to reduce environmental risks to U.S. citizens from external sources of
pollution, as well as to prevent or reduce the impact of pollution originating in the United States.

       In FY 2005, EPA will continue cooperating with other nations to enforce compliance
with international  agreements  affecting the  environment  to  promote global  environmental
protection. These activities  also serve to level the economic playing field in an increasingly
global trading system.
FY 2005 CHANGE FROM FY 2004

EPM

•      +$5,400,000,  54.0 FTE:   Increases  FTE  to  maximize compliance  and  achieve
       environmental results through targeted inspections and enforcement.  The increase will
       bring the Office of Enforcement and Compliance Assurance's FTE to actual FY 2003 and
       expected FY 2004 levels.

•      -$233,500, -0.9 FTE:  Technical adjustment made transferring resources to the enabling
       support program area of IT/Data Management to supporting data quality efforts.

•      -$64,800, -0.5 FTE:   Resources  are  being moved to support management  of the
       environmental justice small grants program supporting Goal 4.

•      There are increases for payroll, cost of living and enrichment for existing FTE.

Superfund

•      +383,100, +3.0 FTE:   Technical  adjustment from Forensics  support under Goal 5,
       Objective 4.  The adjustment reflects work being performed at the National Enforcement
       Investigations Center that supports the homeland security efforts.

•      +$433,700:  Technical adjustment made from forensics support under goal 5, objective 4
       to support the OECA's programs under goal 5, objective 1.
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ANNUAL PERFORMANCE GOALS AND MEASURES

Non-compliance Reduction

In 2005         Through monitoring and enforcement actions, EPA will increase complying actions, pollutant reduction or treatment, and
               improve EMP.

In 2004         EPA will direct enforcement actions to maximize compliance and address environmental and human health problems.

In 2003         EPA will directed enforcement actions to maximize compliance and address environmental and human health problems.

Performance Measures:                                     FY2003           FY2004           FY2005
                                                         Actuals            Pres. Bud.         Pres. Bud.
Millions  of pounds of pollutants required to  be reduced   600               350                                 M pounds
through  enforcement actions  settled  this fiscal year.(core
optional)

Number of EPA inspections conducted (core required)         18,880            15,500                              inspections

Pounds of pollution estimated to be  reduced, treated, and                                       300               million pounds
eliminated as a result of concluded enforcement actions.

Percentage of concluded enforcement cases (including SEPs)                                       30                Percentage
requiring that pollutants be reduced,  treated,  or eliminated
and protection of populations or ecosystems.

Percentage of concluded enforcement cases (including SEPs)                                       60                percentage
requiring  implementation  of improved  env.  management
practices.

Number  of inspections, civil  investigations  and  criminal                                       18,500            insp&inv.
investigations conducted.

Dollars invested in improved env. performance or improved                                       4 billion           Dollars
EMP  as  a result of concluded enforcement  actions (i.e.,
injunctive relief and SEPs)

Percentage of regulated entities taking complying actions, as                                       10                percentage
a result of compliance monitoring.

Percent  of concluded enforcement  actions that require an   63                75                                  Percent
action that results in environmental benefits and/or changes
in facility management or information practices.

Number of Criminal Investigations                           471               400                                 Investigations

Number of Civil Investigations                              344              225                                 Investigations


Baseline:       Protecting the public  and the environment from  risks posed by violations of environmental requirements is basic to EPA's
               mission.  To develop  a more complete picture of the results of the enforcement and compliance program, EPA has initiated a
               number of performance measures designed to capture the results  of reducing the amount of time for significant noncompliers to
               return to  compliance, reducing  noncompliance recidivism rates, and improvements in facility process and/or management
               practices through behavioral changes. The baseline rates for many of these measures were established in FYOO. These measures
               will complement the  traditional enforcement measures of inspections and enforcement actions to provide a more complete
               picture of environmental results from the enforcement and compliance program.

Compliance Incentives

In 2005         Through self-disclosure policies, EPA will increase the percentage of facilities reducing pollutants or improving EMP.

In 2004         Increase opportunities through new targeted sector initiatives for industries to voluntarily self-disclose and correct violations on
               a corporate-wide basis.

In 2003         Increased opportunities through new targeted sector initiatives for industries to voluntarily self-disclose and correct violations on
               a corporate-wide basis.

Performance Measures:                                    FY2003           FY2004          FY2005
                                                         Actuals            Pres. Bud.         Pres. .Bud.
Percentage of  audits  or  other actions  that  result  in the                                       5                 percentage
reduction, treatment, or elimination of pollutants;  and the
protection of populations or ecosystems.

Percentage  of  audits  or  other   actions that  result  in                                       10                Percentage
improvements in env. management practices.


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                                                           FY 2003
                                                           Actuals
Performance Measures:

Pounds of pollutants reduced,  treated, or eliminated,  as  a
result of audit agreements or other actions.

Dollars invested  in  improving environmental management
practices as a result of audit agreements or other actions.

Facilities voluntarily self-disclose and correct violations with   848
reduced or no penalty  as  a  result of EPA  self-disclosure
policies.
FY2004
Pres. Bud.
                                                                             500
FY2005
Pres. Bud.
.25 million


2 million
                                                                                                                  Pounds


                                                                                                                  dollars


                                                                                                                  Facilities
Baseline:       EPA  developed its Audit/Self-Policing Policy in 1995  to  encourage corporate audits and subsequent correction of self-
               discovered violations.  That Policy as well as the Small Business Compliance Policy were modified in FYOO. The Agency is
               working to expand the use of the Audit Policy through aggressive outreach to specific sectors.   In  FY01 the performance
               measure was modified to reach settlements with 500 facilities to voluntarily self-disclose and correct violations.  This same
               measure has been carried continued.

Regulated Communities

In 2005        Through compliance assistance, EPA will increase the understanding of regulated entities, improve Environmental Management
               Practices, and reduce pollutants.

In 2004        Increase the regulated community's compliance with environmental requirements through their expanded use of compliance
               assistance.  The Agency will continue  to support small business compliance  assistance centers and  develop compliance
               assistance tools such as sector notebooks and compliance guides.

In 2003        Increased the regulated community's compliance with environmental requirements through their expanded use of compliance
               assistance. The Agency continued to support small business compliance assistance centers and developed compliance assistance
               tools such as sector notebooks and compliance guides.
Performance Measures:                                      FY 2003
                                                           Actuals
Number of facilities, states, technical assistance providers or   721,000
other entities reached through targeted compliance assistance
(core optional)

Percentage of  regulated  entities  seeking  assistance from
EPA-sponsored CA centers and clearinghouse reporting that
they improved EMP as a result of their use of the centers or
the clearinghouse.

Percentage of regulated entities receiving direct compliance
assistance from EPA (e.g., training, on-site visits) reporting
that they improved EMP as a result of EPA assistance.

% of regulated  entities seeking assistance  from  EPA-
sponsored CA centers and clearinghouse reporting that they
reduced, treated, or eliminated pollution as a result of that
resource.

% of regulated  entities seeking assistance  from  EPA-
sponsored CA centers and clearinghouse reporting that they
increased their understanding of env. rqmts. as a result of
their use of the resources.

% of regulated entities receiving direct CA from EPA (e.g.,
training, on-site visits) reporting  that they increased their
understanding of env. rqmts. as a result of EPA assistance.

% of regulated entities receiving direct assistance from EPA
(e.g., training,  on-site visits) reporting that they reduced,
treated, or eliminated pollution, as a result of EPA assistance.
                                                                             FY2004
                                                                             Pres. Bud.
                                                                             500,000
                   FY2005
                   Pres. Bud.
                                                                                                60
                                                                                                50
                                                                                                25
                                                                                                75
                                                                                                65
                                                                                                25
                                     Entities
                                                                                                                  percentage
                                                                                                                  Percentage
                                                                                                                  Percentage
                                                                                                                  Percentage
                                                                                                                  percentage
                                                                                                                   percentage
Baseline:       EPA provides clear and consistent descriptions of regulatory requirements to assure that the community can understand its
               obligations. EPA supports initiatives targeted toward compliance in specific industrial and commercial sectors or with certain
               regulatory requirements. Compliance assistance tools range from plain-language guides, factjsheets, checklists and newsletters.
               New distribution methods include the on-line Clearinghouse.  In FY03, EPA is planning to reach 475,000 facilities, states, or
               technical assistance providers through targeted compliance assistance efforts.
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VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 PERFORMANCE MEASURE;

Percentage of concluded enforcement cases (including SEPs) requiring that pollutants be
reduced, treated, or eliminated and protection of populations or ecosystems.

Pounds of pollution estimated to be reduced, treated, or eliminated as a result of concluded
enforcement actions.

Percentage of concluded enforcement cases (including SEPs) requiring implementation of
improved environmental management practices.

Dollars invested  in  improved  environmental performance or improved environmental
management practices as a result of concluded enforcement actions (i.e., injunctive relief
and SEPs).

Percentage of audits or other actions that result in the reduction, treatment, or elimination
of pollutants and protection of populations or ecosystems.

Percentage of audits or other actions that result in improvements in environmental
management practices.

Pounds of pollutants reduced,  treated, or eliminated as a result of audit agreements or
other actions.

Dollars invested in improved  environmental management practices as  a result of audit
agreements or other actions.

Performance Database: The Integrated Compliance Information System, (ICIS), which tracks
EPA civil enforcement (e.g., judicial and administrative) actions.

Data Source: Most of the essential data on environmental results in ICIS are collected through
the use of the Case Conclusion Data Sheet (CCDS), which Agency staff begins preparing after
the conclusion of each civil (judicial and administrative) enforcement action.  EPA implemented
the CCDS in 1996 to capture relevant information on the results and environmental benefits of
concluded enforcement cases. The information  generated through the CCDS is used to track
progress for several of the performance measures. The CCDS form consists of 27 specific
questions which,  when  completed,  describe specifics  of the case;  the  facility  involved;
information on how the case was concluded; the compliance actions required to be taken by the
defendant(s); the costs involved; information on any Supplemental Environmental Project to be
undertaken  as part of the settlement; the amounts and types of any penalties assessed; and any
costs recovered  through the action,  if applicable.  The CCDS  documents whether  the
facility/defendant,  through injunctive  relief, must: (1)  reduce pollutants;   and  (2)  improve
management practices to curtail, eliminate or better monitor and handle pollutants in the future.
The  Criminal Enforcement Program also maintains a  separate case conclusion data  form and
system for compiling and analyzing the results of criminal enforcement prosecution.
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Methods, Assumptions and Suitability:  For enforcement actions which result in pollution
reductions, the staff estimate the amounts of pollution reduced for an immediately implemented
improvement, or an average year once a long-term solution is in place. There are established
procedures for the staff to calculate, by statute, (e.g., Clean Water Act), the pollutant reductions
or eliminations. The procedure first entails the determination of the difference between the
current "out of compliance" concentration of the pollutant(s) and the post enforcement action
"in compliance" concentration. This difference is then converted to mass per time using the flow
or quantity information derived during the case.

QA/QC Procedures:   Quality Assurance/Quality  Control procedures [See references] are in
place for both the CCDS and  ICIS entry. There are a Case Conclusion Data Sheet Training
Booklet [See references] and a Case Conclusion Data Sheet Quick Guide [See references], both
of which have been distributed throughout Regional and Headquarters' (HQ) offices. Separate
CCDS Calculation and Completion Checklists [See references] are required to be filled out at the
time the CCDS is completed.

Quality Management  Plans (QMPs)  are  prepared for  each Office within The Office  of
Enforcement  and  Compliance  Assurance (OECA). The  Office  of Compliance (OC)  has
established extensive  processes for  ensuring  timely input,  review and  certification of ICIS
information in FY'03. OC's QMP, effective for 5  years,  was approved July 29, 2003.  OECA
instituted  a  requirement for semiannual executive certification of the overall accuracy  of
information  to satisfy the  GPRA, the Agency's  information  quality guidelines, and other
significant enforcement and compliance policies on performance measurement.

Data Quality Review: Information contained hi the CCDS and ICIS are required by policy to
be reviewed by regional and headquarters' staff for completeness and accuracy.

Data Limitations: The pollutant reductions or eliminations reported on the CCDS are estimates
of what  will be  achieved  if the  defendant  carries out  the requirements  of the  settlement.
Information on expected outcomes of state enforcement is not available. The estimates are based
on information available at the time a case is settled or an order is issued. In some instances, this
information will be developed and entered after the settlement, during continued discussions
over specific plans for compliance. Because of the time it takes to  agree on the compliance
actions, there may be delay in completing the CCDS. Additionally, because of unknowns at the
tune of settlement, different levels of technical  proficiency, or the nature  of a case, OECA's
expectation is that based on  information on the  CCDS, the overall amounts of pollutant
reductions/eliminations will be prudently underestimated.

Error Estimate:  Not available

New & Improved Data or Systems:  In November 2000, EPA completed a  comprehensive
guidance package on the preparation of the Case Conclusion Data Sheet. This guidance, issued
to headquarters' and regional managers and staff, was made available in print and CD-ROM, and
was supplemented hi FY 2002 [See references]. The guidance contains work examples to ensure
better calculation  of  the  amounts of pollutants  reduced or eliminated  through concluded
enforcement actions. EPA trained each of its ten  regional offices during FY 2002. OC's Quality
Management Plan was approved by OEI July 29, 2003, and is effective for five years. [See
references]

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References:  Quality Assurance and Quality Control  procedures: Data Quality: Life Cycle
Management Guidance, (IRM Policy Manual 2100, dated September 28, 1994, reference Chapter
17 for Life Cycle Management). Case Conclusion Data Sheets: Case Conclusion Data Sheet,
Training        Booklet,         issued         November         2000         available:
w\\^%epa.gov/compliance/resources/publications/planning/caseconc.pdf: Quick Guide  for Case
Conclusion Data Sheet, issued November 2000. Information Quality Strategy and OC's Quality
Management Plans:  Final Enforcement and Compliance Data Quality Strategy, and Description
of FY 2002 Data Quality Strategy Implementation Plan  Projects, signed March 25, 2002. ICIS:
U.S. EPA, Office of Enforcement and Compliance Assurance, ICIS Phase I, implemented June
2002. Internal EPA database; non-enforcement sensitive  data available to the public through the
Freedom of Information Act (FOIA).

FY 2005 Performance Measure; Number of inspections, civil investigations, and  criminal
investigations conducted

Performance Databases: Output measure. Integrated Data for Enforcement Analysis (IDEA)
integrates data from major enforcement and compliance systems, such as the Permit Compliance
System (PCS),  Air Facilities Subsystem  (AFS), Resource Conservation and  Recovery Act
Information System (RCRAInfo), and Emergency Response Notification system (ERNS). The
Criminal Docket System (CRIMDOC) is a criminal case management, tracking and reporting
system. Information about criminal cases investigated by the U.S. EPA-Criminal Investigation
Division (CID) is entered into CRIMDOC at  case initiation, and investigation and prosecution
information is tracked until case conclusion.

Data Source: EPA's regional and Headquarters' offices.  U.S. EPA-CID offices.

Methods, Assumptions and Suitability: N/A

QA/QC Procedures:  All the systems have been developed in accordance with the Office of
Information Management's Lifecycle Management Guidance, which includes  data validation
processes, internal screen audit checks and verification, system and user documents, data quality
audit reports, third-party testing reports, and detailed report specifications for showing how data
are calculated. For CRIMDOC, the system administrator performs regularly scheduled quality
assurance/quality control checks of the CRIMDOC database to validate data and to evaluate and
recommend enhancements to the system.

Data Quality Review: EPA is now using updated monitoring strategies [See references] which
clarify reporting definitions and enhances oversight of  state and local compliance monitoring
programs.   In FY2003, OECA instituted a requirement for semiannual executive certification of
the overall accuracy of information to satisfy the GPRA, the  Agency's information quality
guidelines,  and  other significant  enforcement  and  compliance  policies on performance
measurement.

Data Limitations:  For all systems, there  are concerns  about quality and completeness of data
and the ability of existing systems to meet data needs. Incompatible database structures/designs
and differences in data definitions impede integrated analyses. Additionally, there are incomplete
data available on the universe of regulated facilities because not all are inspected/permitted. In

                                         V-32

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addition, the targets for numbers of inspections, and civil and criminal investigations are based
on the resources redirected to the state and Tribal enforcement grant program,

Error Estimate: N/A

New & Improved Data or Systems:  PCS modernization is underway and the first version is
scheduled to be released in December 2005.  An Interim Data Exchange Format (IDEF) has been
established and will support the transfer of data from modernized state systems into the current
PCS data system while PCS is being modernized.  EPA is addressing the quality of the data hi
the major systems and each Office within OECA has developed a Quality Management Plan
(data quality objectives, quality  assurance project  plans, baseline  assessments).  A new
Integrated Compliance Information System (ICIS) supports core program needs and consolidates
and streamlines existing systems.  Additionally, OECA began implementing its Data Quality
Strategy in FY 2002.  A new case management, tracking and reporting system (Case Reporting
System) is currently being  developed that will  replace CRIMDOC. This new system will be a
more user-friendly database with greater tracking, management and reporting capabilities.

References:   Clean   Air  Act  Compliance  Monitoring  Strategy,   April   25,   2001,
www.epa.gQy/compliance/fre.sQU^^
AFS: http://^^ww,epa.gQv/compllanceyplamiing/data/air/afssystemAtml.
PCS: http://www.epa.gov/cQmpliance^
RCRA info:  http://w\yw.epa,gQyte^
For CRIMDOC:  CRIM-DOC U.S. EPA, Office of Enforcement and Compliance Assurance.
Internal enforcement confidential  database; non-enforcement sensitive data available to the
public through the Freedom of Information Act (FOIA).
Information  Quality Strategy and  OC's Quality  Management Plans:  Final  Enforcement and
Compliance  Data Quality  Strategy,  and  Description of FY 2002 Data  Quality  Strategy
Implementation Plan Projects, signed March 25, 2002

FY 2005 Performance Measure;  Percentage  of regulated entities taking complying actions
as a result of compliance inspections and evaluations.

Performance Databases: ICIS and manual reporting by regions

Data Sources: EPA regional offices and Office of Regulatory Enforcement (specifically, the
Clean Air Act (CAA)- Mobile Source program).

Methods, Assumptions and Suitability: A new measurement tool, the Inspection Conclusion
Data Sheet,  (ICDS) will be used to analyze results from inspections conducted under some of
EPA's major statutes.   EPA will analyze data on communication  of problems  to industry,
compliance  assistance delivered by inspectors, and immediate corrections made  by industry
according to region, nationally and by industry sector. The inspectors fill out the Inspection
Conclusion Data Sheet (ICDS) for each inspection and that information is reported to ICIS by
the Regions.

QA/QC Procedures:   ICIS  has been  developed  per Office  of Information Management
Lifecycle Management Guidance, which includes data validation processes, internal screen audit
                                         V-33

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checks and verification, system and user documents, data quality audit reports, third party testing
reports, and detailed report specifications for showing how data are calculated.

Data  Quality Review:   Regional manual  reports are reviewed  and checked against  the
inspection data entered into other Agency databases (Air Facilities  Subsystem (AFS), Permit
Compliance System (PCS), Online Tracking Information System (OTIS), Integrated Data for
Enforcement Analysis (IDEA)). Information contained in the CCDS and ICIS are required by
policy to be reviewed by regional and headquarters' staff for completeness and accuracy. In
FY2003, OECA instituted a requirement  for semiannual executive certification of the overall
accuracy of information to satisfy the GPRA, the Agency's information quality guidelines,  and
other significant enforcement and compliance policies on performance measurement.

Data Limitations:  ICIS  is not currently the primary database for inspections and as a result the
regions have to enter inspection data into both ICIS and other  Agency databases.  This can result
in redundant, incomplete, or contradictory data.

Error Estimate: N/A

New & Improved Data or Systems: The new Integrated Compliance Information System
(ICIS) will support core program needs and consolidate and streamline existing systems. As ICIS
becomes more widely used by the regions and HQ programs some of the problems with data
entry  and reporting should be  resolved.  As various  older systems  become modernized (e.g.,
PCS), they will incorporate the ICDS data set as part of the system.  This should minimize data
entry and reporting problems.

References: ICIS:  U.S. EPA, Office of Enforcement and Compliance Assurance, ICIS Phase I,
implemented June 2002.  Internal EPA database; non-enforcement sensitive data available to the
public through the Freedom of Information Act (FOLA).

FY 2005 Performance Measure;

Percentage of regulated survey  respondents seeking assistance from EPA-sponsored
compliance   assistance   centers  and  clearinghouse  reporting  that  they   improved
environmental  management  practices  as  a  result of their use of the centers or  the
clearinghouse.

Percentage of regulated survey  respondents seeking assistance from EPA-sponsored
compliance assistance centers and clearinghouse reporting that they reduced,  treated, or
eliminated pollution as a result of their use of the centers or the clearinghouse.

Percentage of regulated survey  respondents seeking assistance from EPA-sponsored
compliance  assistance  centers and  clearinghouse  reporting that  they increased their
understanding of environmental requirements as a  result  of their use of the centers or the
clearinghouse.

Performance Database:  In FY2005, EPA Headquarters will manage data on the performance
of the Centers and Clearinghouse respondents using ICIS (Integrated Compliance Information
                                         V-34

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System) and will no longer operate and maintain the Reporting Compliance Assistance Tracking
System (RCATS).

Data source:  Headquarters and EPA's Regional offices will enter information in ICIS upon
completion and delivery  of media  and  sector-specific  compliance  assistance  including
workshops, training, on-site visits  and distribution of compliance assistance tools.  ICIS  is
designed   to   capture   outcome   measurement   information    such   as   increased
awareness/understanding of environmental laws, changes  in  behavior and environmental
improvements as a result of the compliance assistance provided.

Methods, Assumptions and Suitability: N/A

QA/QC Procedures: Automated data checks and data entry guidelines are in place for ICIS.

Data  Quality  Reviews:  Information contained in the  ICIS is  reviewed by Regional and
Headquarters staff for completeness and accuracy.  In FY2003, OECA instituted a requirement
for semiannual executive certification  of the overall accuracy of information to satisfy the
GPRA,  the Agency's  information  quality guidelines, and other significant enforcement and
compliance policies on performance measurement.

Data Limitations: None

Error Estimate: None

New/Improved Data or Systems: EPA plans to incorporate RCATS into ICIS in FY2004.

References: Reporting Compliance Assistance Data in the Integrated Compliance Information
System  (ICIS), January 9, 2004. RCATS: U.S. EPA Office of Enforcement and Compliance
Assurance. Internal EPA database. Guidance: RCATs User Guide of March 19, 2001.

FY 2005 Performance Measure;

Percentage of regulated entities receiving direct  compliance assistance from EPA (e.g.,
training, on-site visits) reporting that they improved environmental management practices
as a result of EPA assistance.

Percentage of regulated entities receiving direct  compliance assistance from EPA (e.g.,
training, on-site visits) reporting that they increased their understanding of environmental
requirements as a result of EPA assistance.

Percentage of regulated entities receiving direct assistance from EPA (e.g., training, on-site
visits) reporting that they reduced,  treated, or eliminated pollution, as a result of EPA
assistance.

Performance  Database:   EPA Headquarters will manage  data  on the performance  of the
Centers and clearinghouse respondents using ICIS (Integrated Compliance Information System)
in FY05 and will no longer operate and maintain the Reporting Compliance Assistance Tracking
System  (RCATS). •

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Data source: Headquarters and EPA's Regional offices will enter information in ICIS upon
completion and delivery  of  media and sector-specific compliance  assistance including
workshops, training, on-site visits and distribution of compliance assistance tools.  ICIS is
designed   to   capture   outcome   measurement    information   such    as   increased
awareness/understanding of environmental  laws,  changes in behavior and environmental
improvements as a result of the compliance assistance provided.

Methods, Assumptions and Suitability: N/A

QA/QC: Automated data checks and data entry guidelines are in place for ICIS.

Data Quality Review:  Information  contained in the ICIS  is reviewed  by Regional and
Headquarters  staff for completeness and accuracy.  In FY2003, OECA instituted a requirement
for semiannual  executive certification of the overall accuracy of information to satisfy the
GPRA,  the Agency's information quality guidelines, and other significant  enforcement and
compliance policies on performance measurement.

Data Limitations: None

Error Estimate: None

New & Improved Data or Systems: EPA plans to incorporate RCATS into ICIS in FY2004.

References:  Reporting Compliance Assistance Data in the Integrated Compliance Information
System  (ICIS), January 9, 2004.  RCATS: U.S. EPA Office of Enforcement and Compliance
Assurance. Internal EPA database. Guidance: RCATs User Guide of March 19, 2001.


EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLANS

      OECA is currently developing an outcome measure to capture the impact of the criminal
enforcement program's specific deterrence, which EPA considers to be a "level two" or "level
three" outcome on its hierarchy.  Specific deterrence is  based on the assumption that once
prosecuted and punished, a defendant will not deliberately break the law again. OECA's measure
of specific deterrence will be based on recidivism, i.e., the degree to which a former defendant in
an  EPA criminal  enforcement  prosecution has  been  indicted  subsequently  for  another
environmental crime.  OECA's Office of Criminal Enforcement,  Forensics  and  Training is
currently developing this measure. It plans to track the measure and develop a baseline in FY
2005, and expects to propose it as a formal GPRA measure in FY 2006

      For FY 2005, the civil and criminal enforcement programs will use pounds of pollutants
reduced per FTE for both program's efficiency measures.  Since achievement of the civil and
criminal enforcement program's  annual  and long-term goals  are highly dependent  on  the
enforcement cases concluded in a given year, there can be significant variability in a measure
from one year to the next. To  partially address  this variability, this efficiency measure is based
on three-year rolling averages.
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       For FY 2005, the civil and criminal enforcement programs will use pounds of pollutants
reduced per FTE for both program's efficiency measures.  Since achievement of the civil and
criminal  enforcement  program's annual and  long-term goals  are highly dependent on the
enforcement cases concluded in a given year, there can be significant variability in a measure
from one year to the next.  To partially address this variability, this efficiency measure is based
on three-year rolling averages.

COORDINATION WITH OTHER AGENCIES

       The Enforcement and Compliance Assurance  Program coordinates  closely  with the
Department of Justice  (DOJ) on all enforcement matters.  In addition, the program coordinates
with other agencies on specific environmental issues as described herein.

       The Office  of Enforcement  and Compliance Assurance coordinates with the  Chemical
Safety and Accident Investigation Board, the Occupational Safety and Health Administration,
and Agency  for Toxic  Substances and Disease Registry in  preventing  and responding to
accidental releases and endangerment situations, with the  Bureau of Indian Affairs  on  Tribal
issues  relative to compliance with  environmental laws on Tribal Lands, and with the  Small
Business Administration on the implementation of the Small Business Regulatory Enforcement
Fairness Act (SBREFA). In addition, it coordinates with the Small Business Administration and
a number of other federal agencies in implementing the  Business Compliance One-Stop Project,
an "E-Government" project that is part of the President's Regulatory Management Agenda. The
Office of Enforcement and Compliance Assurance also works with a variety of federal agencies
including the Department  of Labor and the Internal Revenue Service to  organize  a Federal
Compliance  Assistance  Roundtable to address cross  cutting  compliance assistance  issues.
Coordination also occurs with the U.S. Army Corps of Engineers on wetlands.

       Due to changes in  the Food Security Act, the U.S. Department of Agriculture/Natural
Resources Conservation Service (USDA/NRCS) has a major role in determining whether areas
on agricultural lands meet the definition of wetlands and are therefore regulated under  the Clean
Water Act. Civil Enforcement coordinates with USDA/NRCS on these issues also.  Finally, the
program coordinates closely with the Department of Agriculture on the implementation of the
Unified National Strategy for Animal Feedlot Operations. EPA's Enforcement and Compliance
Assurance program also coordinates with USDA on food safety issues arising from the  misuse of
pesticides, and shares joint jurisdiction with Federal Trade Commission (FTC) on pesticide
labeling and advertising. Coordination also occurs with Customs on pesticide imports.  EPA and
the Food and Drug Administration  (FDA) share jurisdiction over general-purpose disinfectants
used  on  non-critical  surfaces  and some  dental  and  medical  equipment  surfaces (e.g.,
wheelchairs).  Finally, the Agency has entered into a Memorandum of Understanding with the
Department of Housing and Urban Development concerning lead poisoning.

       The Criminal Enforcement  program coordinates with  other federal law enforcement
agencies (i.e. FBI, Customs, Treasury, U.S. Coast Guard, DOJ) and with  state and  local law
enforcement organizations in the investigation and prosecution of environmental crimes. EPA
also actively works with DOJ to establish task forces that bring together federal, state and local
law  enforcement  organizations to  address environmental  crimes. In  addition, the National
Enforcement Training Institute has an Interagency Agreement with the Department of Treasury
to provide specialized criminal  environmental training to  federal, state, local, and Tribal law

                                         V-37

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enforcement personnel at the Federal Law Enforcement Training Center (FLETC) in Glynco,
GA. NETI also coordinates with four state associations who provide training for state and local
officials.

       Under Executive  Order 12088, EPA is directed to provide technical assistance to other
Federal agencies to help ensure their compliance with all environmental laws.  The Federal
Facility Enforcement Program coordinates with other Federal agencies, states, local, and Tribal
governments to ensure compliance by federal agencies with all environmental laws.

       The Office of Enforcement and Compliance Assurance works closely with the states and
tribes.   States perform  the vast majority  of inspections, direct compliance  assistance, and
enforcement actions. Most EPA statutes envision a partnership between EPA and the states
under which EPA develops national standards and policies and the states implement the program
under authority delegated by EPA.  If a state does not seek approval of a program, EPA must
implement that program  in the state. Historically, the level of state approvals has increased as
programs mature and state capacity expands, with many of the key environmental programs
approaching approval in  nearly all states. EPA will increase its effort to coordinate with states
on training, compliance  assistance, capacity building and enforcement.  EPA will continue to
enhance the network of state and Tribal compliance assistance providers.

       EPA works directly with Canada and Mexico bilaterally and in the trilateral Commission
for Environmental Cooperation (CEC). EPA's border activities require close coordination with
the  U.S. Customs Service, the Fish and  Wildlife Service, the Department of Justice, and the
States of Arizona, California, New Mexico, and Texas.
STATUTORY AUTHORITIES

Resource Conservation and Recovery Act sections 3007, 3008, 3013, and 7003 (42 U.S.C. 6927,
   6928, 6934, 6973)
Comprehensive Environmental Response, Compensation, and Liability Act sections 106,  107,
   109, and 122 (42 U.S.C. 9606, 9607, 9609, 9622)
Clean Water Act (CWA) sections 308, 309, and 311 (33 U.S.C. 1318, 1319, 1321)
Safe Drinking Water Act  sections  1413, 1414, 1417, 1422, 1423, 1425, 1431,  1432, 1445 (42
   U.S.C. 300g-2, 300g-3, 300g-6, 300h-l, 300h-2, 300h-4, 300i, 300i-l, 300J-4)
Clean Air Act sections 113,114, and 303 (42 U.S.C. 7413, 7414, 7603)
Toxic Substances Control Act (TSCA) sections 11, 16, and 17 and TSCA Titles II and IV (15
   U.S.C. 2610, 2615, 2616, 2641-2656, 2681-2692)
Emergency Planning and Community Right-to-Know Act sections 325 and 326 (42 U.S.C.
   11045,11046)
Residential Lead-Based Paint Hazard Reduction Act of 1992, section 1018 under TSCA section
   11 (42 U.S.C. 4852d, 2610)
Federal Insecticide, Fungicide, and Rodenticide Act sections 8, 9, 12, 13, and 14 (7 U.S.C. 136f,
   I36g, 136j,  136k, 1361)
Ocean Dumping Act sections 101, 104B,  105, and 107 (33 U.S.C. 1411, 1414B, 1415, 1417)
North American Agreement on Environmental Cooperation
1983 La Paz Agreement on US/Mexico Border Region
National Environmental Policy Act (NEPA) section 102(f)

                                         V-38

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Pollution Prosecution Act of 1990 (42 U.S.C. section 4321 note)

Environmental Information Authorities

Clean Air Act (CAA) (42 U.S.C. 7601-7671q)
Clean Water Act (CWA) (33 U.S.C. 1251 - 1387)
Clinger-Cohen Act
Comprehensive Environmental Response,  Compensation, and  Liability Act (CERCLA) (42
  U.S.C. 9601-9675)
Computer Security Act
Congressional Review Act
Congressional Review Act
CPRKAof 1986
Emergency  Planning and Community Right-to-Know Act (EPCRA) section 313 (42 U.S.C.
  110001-11050)
Emergency Planning and Community Right-to-Know Act (EPCRA) section 313 (42    U.S.C.
  110001-11050
Enterprise for the Americas Initiative Act (7 U.S.C. 5404)
Environmental Research, Development, and Demonstration Act (ERDDA) of 1981
Executive Order 12866
Executive Order 12915 -  Federal Implementation  of the  North American Agreement  on
  Environmental Cooperation
Executive Order 12916 - Implementation of the Border Environment Cooperation Commission
  and the North American Development Bank
Executive Order 13148, "Greening  the Government through Leadership  in  Environmental
  Management"
Federal Advisory Committee Act (FACA) (5 U.S.C. App.)
Federal Food, Drug and Cosmetic Act (FFDCA)
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) (7 U.S. C. 136-136y)
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) (7 U.S. C. 136-136y)
Federal Managers Financial Integrity Act (FMFIA)
Food Quality Protection Act (FQPA)
Freedom of Information Act (FOIA) (5 U.S.C. 552)
Government Paperwork Elimination Act (GPEA)
Government Performance and Results Act (GPRA)
National Environmental Education Act
North American Agreement on Environmental Cooperation
Paperwork Reduction Act Amendment of 1995 (44 U.S.C. 3501-3520)
Plain Language Executive Order
Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)
Privacy Act
Regulatory Flexibility Act
Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901-6992k)
Safe Drinking Water Act section 1445 (SDWA) (42 U.S.C. 300f-300j-26)
Small Business Regulatory Enforcement Fairness Act
Toxic Substance Control Act section 14 (TSCA) (15 U.S.C. 2601-2692)
Unfunded Mandates Reform Act
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                     Compliance and Environmental Stewardship

OBJECTIVE:  Improve  Environmental  Performance through  Pollution  Prevention  and
Innovation

      By 2008, improve environmental protection and enhance natural resource conservation
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 barriers, and the adoption of results-based,
innovative, and multimedia approaches.

                                 Resource Summary
                                (Dollars in Thousands)

Improve Environmental Performance
through Pollution Prevention and
Innovation
Environmental Program & Management
Building and Facilities
State and Tribal Assistance Grants
Inspector General
Total Workyears
FY2003
Actuals
$123^11.5
$97,351.3
$1,557.8
$23,874.4
$528.0
544.2
FY2004
Pres. Bud.
$137,968.5
$104,608.4
$1,635.3
$31,000.0
$724.8
556.1
FY2005
Pres. Bud.
$169,802.0
$113,104.3
$1,769.6
$54000.0
$928.1
562.6
FY2005Req.v.
FY 2004 Pres Bud
$31,833.5
$8,495.9
$134.3
$23,000.0
$203.3
6.5
                                  Program Project
                                (Dollars in Thousands)

Categorical Grant: State and Tribal
Performance Fund
Small Business Ombudsman
Categorical Grant: Environmental Information
Categorical Grant: Pollution Prevention
NEPA Implementation
Pollution Prevention Program
Regulatory/Economic-Management and
Analysis
Environmental Education
Congressionally Mandated Projects
RCRA: Waste Minimization & Recycling
Regulatory Innovation
Administrative Projects
TOTAL
FY 2003
Actuals
$0.0
$3,048.6
$18,514.0
$5,360.4
$11,204.2
$15,450.3
$21,261.8
$5,281.0
$1,950.5
$3,325.9
$7,357.9
$30,556.9
$123,311.5
FY2004
Pres. Bud.
$0.0
$3,764.9
$25,000.0
$6,000.0
$12,315.4
$17,098.7
$18,468.6
$0.0
$0.0
$4,134.2
$19,390.5
$31,796.2
$137,968.5
FY2005
Pres. Bud.
$23,000.0
$3,838.7
$25,000.0
$6,000.0
$12,654.2
$22,496.2
$18,551.8
$0.0
- $0.0
$4,193.8
$19,349.5
$34,717.8
$169,802.0
FY 2005 Req. v.
FY 2004 Pres Bud
$23,000.0
$73.8
$0.0
$0.0
$338.8
$5,397.5
$83.2
$0.0
$0.0
$59.6
($41.0)
$2,921.6
$31,833.5
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FY 2005 REQUEST

Results to be Achieved under this Objective

       EPA uses multiple approaches to prevent pollution at its source. To achieve the full
measure of opportunities available, EPA has focused on several key means of delivering program
benefits.  For example, EPA supports development of tools and information to assist producers
and consumers in evaluating the cost and environmental/energy savings available through
pollution prevention measures, as well as the identification and promotion of partnerships by
which new approaches can be identified and tested. From these projects, lessons can be applied
to new opportunity areas. Grants through the States build further capacity and demonstrate the
broad-based viability of prevention and conservation-based approaches to environmental
management.

       Attainment of this objective will capture significant human health and environmental
benefits by reducing the amount of pollution generated and released into the environment.  The
objective covers a variety of programs and initiatives that have as a common purpose the
prevention of pollution and the implementation of sustainable practices. For example, EPA is
carrying out a program that is designed to promote federal government acquisition of "greener,"
less polluting products.  These efforts, taken together, directly support the strategic targets that
EPA has adopted for this objective, which express the Agency's pollution prevention
commitments in quantitative, measurable terms. The efforts will also help to conserve public
and private resources to the extent that pollution prevention makes environmental goals
attainable at lower cost.

       In FY 2005, the Agency will continue to carry out its responsibilities under the National
Environmental  Policy Act  (NEPA),  which  requires  that  Federal  agencies consider  the
environmental consequences of their activities.  EPA prepares NEPA environmental reviews for
its proposed actions,  and  under §309 of the Clean Air Act and NEPA,  EPA reviews major
actions taken by other federal agencies to ensure that adverse environmental effects are identified
and either eliminated or mitigated.

       Through the Environmental Information Exchange Network (http://www.exchange
network.net), EPA will continue  to provide funding to states, tribes, and territories to encourage
and promote their data integration efforts and  participation  in the Network. These grants will
allow states  and tribes to create "next generation" environmental data systems that integrate air,
water, and waste data  and provide the regulated community with efficient and reliable electronic
means for reporting compliance information consistent with the President's Management Agenda
and the goals of e-Government.

       In FY  2005, EPA will continue to promote innovative  environmental approaches for
businesses,  states, tribes  and communities to  help  them  achieve  unproved environmental
performance. Incentives for beyond-compliance performance developed and implemented in the
Agency's Performance  Track program  will continue to reward businesses that demonstrate
environmental  responsibility and stewardship that translate into  specific reductions hi air
emissions, water use,  and  the amount of waste generated. The Agency's established programs
with  major industrial sectors  and  small businesses  will  continue  to  achieve  widespread
                                          V-41

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improvements in environmental performance through collaborative planning, targeted assistance,
and innovative regulatory reform.

       Similarly, through innovative environmental pilot projects, EPA will continue to test,
evaluate, and invest in new ways of achieving unproved environmental performance.  EPA will
continue to work with states to test new  approaches in permitting,  including alternatives to
permitting.  Testing innovations will verify their ability to achieve higher levels of environmental
performance.  Evaluating innovations will quantify their results. Building the capacity to conduct
program evaluations of innovations will help sharpen the effectiveness of innovation activities
and stimulate the transfer and replication of successful results-based approaches.

Pollution Prevention Program

       Environmentally  Preferable  Purchasing  Program:   Through the  Environmentally
Preferable  Purchasing Program (EPP), EPA helps other federal agencies identify and acquire
products that generate less pollution, consume fewer non-renewable natural  resources, and pose
less  of a threat  to  human health and to wildlife.  Federal agencies spend  nearly $250 billion
annually on goods and services.6    EPP harnesses this
purchasing  power to  stimulate   demand  for  "greener"
products and  services, thereby fostering  environmentally
improved   manufacturing   processes    and   increased
availability of  environmentally  preferable products  and
services.7 The Agency's investment in such tools as life
cycle  analysis   enables  purchasers   to  evaluate  the
environmental performance  of products  and promotes
"green" products  that generate less pollution throughout
their entire life cycle - from manufacturing to disposal.

       In   recent  vears,  EPP   has   focused   on  the  Thc basis ofthis "bine«y >s a bio-based material
                   J       t                               created from an abundant agricultural fiber,
             Of tOOlS and  information tO help purchasers  sunflower hulls bound together with soybean-
                                                          based resin and sealed with citrus oil.
make environmentally conscious purchasing decisions and
to move the Agency towards meeting its annual program goals.  As a result of these efforts, EPP
participants have at their disposal a wide array of tools and information resources.  For instance,
BEES (Building for Environmental and  Economic  Sustainability),  a tool developed  by the
National Institute of Standards and Technology and supported by EPA's EPP program, provides
life cycle environmental impact information for building products.  The EPP Database provides
the underlying  environmental criteria,  standards  and  specifications for numerous products.8
These efforts are supported by an outreach  program that includes a comprehensive website,
regular publication of the EPP Update, and frequent presentations and exhibits at conferences.

       In FY 2005,  EPA will continue to implement  major efforts in partnership with other
federal agencies, such as a coordinated interagency effort to "green" janitorial services at Federal
facilities by providing federal building managers with model contract language and guidance of
 GAO Report No. 03-443, April 2003. "A Report to the Committee on Government Reform, House of Representatives, and the
Committee on Governmental Affairs, U.S. Senate.
7 U.S. Environmental Protection Agency, Office of Pollution Prevention and Toxics. Environmentally Preferable Purchasing Web
Site: http://\vww.epa.gov/opptintr/epp. Accessed September 9, 2003.
8 www.epa.gov/opptintr/epp/database.htm
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how to green janitorial services contracts, implementing EPA's new on-line ordering system for
"green" office supplies,  development  of a database  with model green  specifications for
construction products aimed at helping federal agencies, and development of an assessment tool
for electronic products. New initiatives will focus on launching a tool to help purchasers assess
the environmental impacts of  electronic assets and the provision  of technical assistance in
interpreting life cycle  environmental impact information for  the USDA Bio-Based Products
program.   These efforts will make  environmentally preferable purchasing  easier for federal
agencies, by giving agencies the easy-to-use tools and technical assistance needed to make
decisions about green purchasing choices.  By increasing federal purchases of green products,
agencies will be able to go beyond compliance with "Greening" Executive Orders.

     Green Suppliers Network: The voluntary Green Suppliers Network (GSN) builds on the
premise  that  cost  effective lean  manufacturing,  pollution  prevention  and  environmental
protection can be the result of good business planning and practice.   Through an innovative
partnership  with  EPA, the National Institute of Standards  and Technology,  Manufacturing
Extension  Partnership (NIST,  MEP),  and state technical assistance  providers, the Green
Suppliers Network enables large manufacturers to actively engage all  levels of their supply chain
in the development of good business  approaches  to prevent pollution.  The  Manufacturing
Extension Partnerships, using facility workshops, assess manufacturing processes, raw materials,
technology and design with the aim of saving money, and protecting the environment at the same
time. The  GSN effort  was launched by EPA in FY 2003 and has  recorded significant progress
since then.

     Through the Green Suppliers Network, suppliers are able to continuously improve products
and  processes, increase  energy efficiency, identify cost-saving  opportunities, and optimize
resources and technologies with the aim of eliminating waste. The program model was first
tested in a successful pilot program with the Saturn Corporation, a subsidiary of the General
Motors  Corporation. Under the Saturn pilot, four manufacturing workshops identified sixteen
potentially valuable environmental  improvement opportunities and corresponding solutions.
Eleven were opportunities for product or process design improvements and increased financial
value.  The environmental benefits of the workshops were a reduction in electricity consumption
of about 1.9Million kWh, CO2 emission reduction of about 80,000  pounds,  transportation fuel
use  reduction of about 3,600  gallons and solid waste disposal reductions  of about  300,000
pounds. The economic value of the workshops was a total potential direct operating cost savings
(annually)  of approximately $360,000 in addition  to reductions  in  such indirect costs as
regulatory reporting and other compliance requirements9.

     Following the Saturn project, General Motors engaged EPA in a more  formal partnership
involving its  suppliers.  This  partnership, launched in October 2002, is  an official  trade
association called the Suppliers' Partnership for the Environment (SP). SP is the automotive arm
of GSN.  The purpose of the SP effort is to develop a system to minimize  the environmental
impact  of the GM manufacturing  process up and  down the  supply chain  through  active
engagement with suppliers. To achieve this, large companies need  then: suppliers to be better
business performers by employing  P2 practices which  result  in materials efficiency and cost
savings.
9 "Greening the Supply Chain Pilot, Phase 1 - Mapping the Saturn Supply Chain," August 12, 2002

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     Today the Suppliers' Partnership for the Environment, an independent network, is open to
all auto manufacturers and suppliers.  While currently it consists of General Motors working
with its suppliers through the NIST/MEP technical assistance, the SP is continuing to expand to
include more of the GM and Daimler-Chrysler supply chain and it may soon include the supply
chains of other Original Equipment Manufacturers.

     In FY 2005, the Green Suppliers Network will continue to expand partnerships with the
aerospace,  automotive, office/home furniture, healthcare/pharmaceutical, farm/construction and
appliances  sectors;  pursue four  additional  industry sectors; furnish training  needed by MEP
centers; form collaborations with other federal agencies (such as DOE's  Office of Industrial
Technologies) and with States; measure and evaluate program results; and coordinate with other
EPA voluntary programs, including Waste Wise, Performance Track and Energy Star.

       Through these  partnerships, the Green Suppliers Network will continue to  focus  on
establishing lean manufacturing practices that incorporate energy and material efficiency as well
as process  optimization within the supply chain.  GSN is uniquely  designed to capture the
environmental impacts of product specification throughout the supply chain. By encouraging
suppliers to identify obstacles such as outdated specifications or regulations, the GSN provides a
forum for identifying options for change. This third-party forum for information transfer helps
to minimize the liabilities associated with direct communications between the  customer and the
supplier. Therefore,  under the GSN, manufacturers  are able  to address product and process
design for the environment issues.

       EPA's GSN efforts have already produced quantifiable environmental results through its
initial pilot efforts hi FY 2002 and in its initial year since being formally launched in FY 2003.
In FY 2005,  this successful program will increase these results by working with the National
Institute for Standards  and Technology (NIST) Manufacturing Extension Partnership (MEP) to
strongly encourage  State P2 technical assistance  providers and local  MEP centers to form
collaborative relationships  under  GSN; developing  a GSN  communication  strategy  and
infrastructure such as a website  to  increase information flow with all participants; developing
pollution prevention tools for chemical management services, green purchasing specifications
and energy efficiency innovations; assisting US sectors  in extending GSN  to foreign suppliers,
particularly those in the NAFTA region; and preparing GSN  for international  replication by
working with international partners through the Commission for Environmental Cooperation
(CEC) and the OECD.  EPA increased its outcome-based FY 2005  P2 Annual Performance
Measures to  reflect the increased results anticipated from these expanded activities, though the
full impact of outreach and technical assistance will take a full year or longer to develop.

       Green Chemistry:  The Green Chemistry program supports research,  development and
use of innovative chemical technologies that can replace more toxic chemicals.  Through
voluntary partnerships with universities and colleges, industry and trade organizations, and State
and federal government agencies, the Green Chemistry program helps provide the technical tools
needed to  develop  and implement scientifically sound and cost-effective alternatives and to
reduce our nation's chemical vulnerabilities.  The Green Chemistry Challenge Awards program
offers  high-level recognition for the  best  examples  and  stimulates additional efforts  and
measurement of results.
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       In FY 2003, the Green Chemistry program undertook an effort to more narrowly focus on
identifying targeted audiences not currently involved hi green chemistry product and process
design  and  specific high priority  chemicals, products,  and/or  processes  for  which safer
alternatives are not available. As part of this effort, the program began working with its partners
to investigate incentives as well as barriers
to adoption  of green  chemistry practices,
particularly by industry.  Initial findings are
varied.    Barriers identified,  for  example,
include technical and economic  issues,  data
ownership  and   proprietary  issues,   and
customer needs  and  perceptions.   These
efforts will be expanded in FY 2004 and are
of  particular  interest  to  the  program's
research and international partners.
     Eliminating 270 Million Pounds of Pollutants

       By the end of FY 2005, EPA expects that over 575
million pounds of hazardous chemicals  and solvents will
have  been  eliminated  through  the  Green  Chemistry
Challenge  Award  Program.    Initiated  hi   1996, the
Presidential Green Chemistry Challenge Award program has
achieved significant pollution prevention by reducing the
quantity of hazardous  chemicals  and solvents in the
environment through the adoption of safer technologies and
chemicals. Thus far (through FY 2003), cumulative pounds
of solid hazardous chemicals and solvents  eliminated are
270 million  pounds; cumulative  gallons  of hazardous
chemicals and solvents eliminated are seven million gallons.
    Substances  eliminated  include  chlorofluorocarbons
(CFCs), volatile organic solvents (VOCs), persistent, toxic,
and bio-accumulative chemicals and solvents, as well as
very corrosive and toxic chemical substances. The program
is also positively impacting water and energy uses.
       The  Green  Chemistry  Program's
current  shift hi  focus  to  more  targeted
audiences and topics is expected to continue
into FY  2005.   Efforts aimed at gaining an
understanding of incentives and barriers to
mainstreaming green chemistry practices as
well  as  increased  State  involvement  will
shape the  program's research, recognition,
and outreach efforts in 2005.  In the area of education, the program's original goals of initially
providing general materials  to a target scientific  audience have been met.  In addition, these
initial education efforts have been  sufficiently leveraged  with key partners.  As such,  EPA's
involvement hi  green chemistry education in 2005 and beyond is  expected to be advisory hi
nature rather than leadership-oriented.

       EPA's Green Chemistry Challenge Program has proven its ability to deliver quantifiable
environmental results, contributing  directly to EPA's long-term strategic and annual outcome-
based pollution prevention performance measures.  Additional resources hi FY 2005 will enable
this successful program to increase these results by expanding and targeting its focus on existing
and emerging chemicals of concern.  Initial targets for development of substitutes will include
supply side reductions  (via process and product improvements) for chemicals already listed on
EPA's Waste Minimization Priority Chemicals List, which are also a target of the Resource
Conservation Challenge,  and  emerging chemicals of  concern  such  as brominated flame
retardants used hi flexible foam, perfluorinated acids and PBT  chemicals. EPA will specify the
parameters  that  will  make   substitutes  environmentally  preferable, such  as chemically
incorporating flame retardants into the foam matrix to control unintended migration during use.
As hi the current Green Chemistry Challenge program, chemical manufacturers as well as
academics and others will be encouraged to participate. New emphasis will be placed on ability
to bring  substitutes to market, ensuring that the results promised by these new innovations are
actually realized.
  U.S. EPA, Office of Pollution Prevention and Toxics. Green Chemistiy Tracking System... Internal Database. Continually
updated.
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       The Green Chemistry program was reviewed for the 2004 and 2005 President's Budgets
with the Administration's Program Assessment Rating Tool (PART) for the New Chemicals
Program, discussed in Goal 4.  The program has shown very strong purpose, management, and
outcome performance, which contributed to an increased rating for the New Chemicals PART
from "Adequate" to "Moderately Effective".

       Green Engineering: The Green  Engineering program seeks to incorporate "green" or
environmentally conscious thinking  and approaches  into  the daily work of  chemical and
environmental engineers. While traditional engineering approaches to pollution prevention often
focus on waste minimization - placing less emphasis on risk factors such as exposure, fate, and
toxicity - EPA's Green  Engineering program encourages consideration  of these factors in the
design,  commercialization, and use  of  chemical  products  and the development  of  feasible,
economical processes that minimize generation of pollution at the source.

       The focus of the Green Engineering Program in the past few years has been on the
academic community. To accomplish its goals, the Green Engineering Program first developed
modules and a standardized  textbook,  published in  2001  and  titled Green Engineering:
Environmentally Conscious Design of Chemical Processes and Products,11 which can be used by
universities  for  Green  Engineering courses  to  provide starting references  for practicing
engineers.  Over the past few years, the  Green Engineering Program has also worked with the
universities  and the American  Society of Engineering Education's Chemical  Engineering
Division (ASEE/ChE) to  develop "Green Engineering champions" and to incorporate  Green
Engineering into  Chemical Engineering curricula.  The ami is to develop future chemical
engineers with Green Engineering training.

       To date, over 200 professors from 90 schools have attended Green Engineering Educators
workshops.  The  Green Engineering textbook is used  and/or incorporated in about 40 to 50
chemical/environmental engineering schools in the U.S. as well as hi several other countries. As
part of the Green Engineering Educators workshops, attendees also receive hands-on training and
education on a number of selected EPA risk-based tools and other risk-based/green engineering
design tools that can be used to develop greener process syntheses and designs of new or existing
chemical processes and operations.

       The focus of the program to date has been on chemical engineers.   There has been
substantial  interest from other engineering disciplines, as well as States, to incorporate Green
Engineering approaches  and tools into their own curricula.   The Green Engineering  Program
started to engage other  engineering  disciplines via the first multi-disciplinary conference on
"Green Engineering:  Defining the  Principles," held  hi May 2003.   An outcome of the
conference was a set of principles that can be incorporated into the education and practice of all
engineering disciplines.    To achieve more tangible and quantifiable results, the program will
start developing plans for a number of projects involving engineers and scientists from academia,
industry, and government.

       The focus in FY 2005 will be on implementation of specific projects and activities which
will result hi quantifiable environmental benefits, including the folio whig activities:
11 U.S. EPA, Office of Pollution Prevention and Toxics, Green Engineering, www.epa.gov/oppt/'greenengiiteering 2001

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•      Partnerships with research institutions on their green engineering/ sustainable research
       projects;
•      Collaboration with professional engineering societies such as the American Institute of
       Chemical Engineers  (AIChE) and  the American  Society  of Mechanical Engineers
       (ASME) on their annual award programs to recognize green enguieering/environmental
       beneficial projects (criteria will be judged based on application  of green  engineering
       principles and approaches developed);
•      Work with industry on specific Green Engineering initiatives/projects of high potential
       environmental benefits;
•      Collection of data on application of Green Engineering approaches and tools from people
       who have received green engineering training (either through ASEE or AIChE);
•      Work with ASEE to apply Green Engineering approaches and tools in industry-sponsored
       Green Engineering projects;
•      Work with  technical journals to produce special issues recognizing innovative and
       environmentally beneficial projects  and  products  which  apply Green  Engineering
       approaches and tools.

       Design for the Environment:  EPA's Design for the Environment (DfE) Program partners
with industry sectors to facilitate the innovation, identification, and adoption of cleaner products,
processes, and  technologies.   DfE partnerships use a variety of approaches including cleaner
technology assessments, life  cycle assessments, formulation improvement, best practices, and
integrated environmental management systems.12

                         Paint Cost Savings with HVLP
                      Conventional    HVLP Spray Guns
HVLP Spray Guns with
Proper Technique
13
       Over the past decade, DfE has partnered with more than 15 industry sectors, including
automotive manufacturing and refinishing, dry cleaning, electronics, foam furniture, industrial
and  institutional laundries, and printing.   DfE partnerships  have consistently  resulted  in
12 U.S. EPA, Office of Pollution Prevention and Toxics, Design for the Environment, www.epa.gov/dfe
13 The chart depicts cost savings associated with DfE's auto refinishing project. * Estimated annual savings, based on 420 gal/yr
Courtesy of the STAR Program, IWRC

                                           V-47

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environmental and health improvements.  For example, half of screen printers switched to a
cleaner  screen  reclamation  product  (1994-1997),   15 percent  of  printed  wiring  board
manufacturers switched to a cleaner  "making holes conductive" technology (1995-1997), dry
cleaners decreased their use of perchloroethylene by 37 percent (1997-2001), and foam furniture
manufacturers dropped  their use of methylene-chloride-based adhesives by 83 percent (1997-
2001)14.

       DfE is also driving the innovation of cleaner technologies and reducing worker and
public health risks. For example, through DfE's formulator partnership with industrial laundries,
14 new eco-friendly detergents have entered the marketplace. Annual benefits from just one of
these detergents include eliminating use of over 340,000 gallons of toxic chemicals and over 100
million gallons of water saved along with the energy to heat it through improvements in product
design that increase  water and energy efficiency15.  DfE's auto-refinishing  partnership has
conducted  best practice site visits  at over 50  auto body shops.  Partner shops have reduced
worker exposure to and emissions of diisocyanates (the leading cause of occupational asthma),
organic solvents  and other  toxic components of paints by as much as 30  percent.  They
accomplished this while saving roughly $4,000 per year per shop16.

       Current and  recently completed DfE  partnerships  -  including auto-refinishing best
practices, computer  displays, industrial  and institutional laundry detergents, and  flexographic
printing - are continuing to see reductions in the use of and exposure to toxic chemicals. DfE is
transferring its "lessons-learned" to additional industries that use similar chemicals and practices
such  as the collision repair, paint,  insurance, and vocational technical educator sectors.  DfE
conducted  train-the-trainer workshops  with these groups  to promote  best  practices.   Best
practices often save money at the same time they protect workers and the environment; such as
the paint spray-gun use illustrated hi the chart above.  A  key focus of the training is to promote
awareness  of health effects and safe handling techniques, improve paint transfer efficiency, and
reduce inhalation and dermal exposure of diisocyanates and other toxic chemicals  during spray
application and related activities.

       Recently, DfE has also been collaborating with EPA  Regions on certain industry sector
projects. For example, DfE and Region 9 are looking at alternatives to the use of brominated
flame retardants hi the furniture industry.  EPA and the furniture manufacturing industry are
initiating a partnership to explore alternatives to both the materials and chemicals used  in
furniture including  foam, fabric, plastics, and  batting and their respective  flame retardant
chemicals. The partnership aims to look holistically at health and  environmental  issues in the
manufacturing process.

       In  addition, DfE has initiated a partnership with the Industrial Designers  Society of
America (IDSA). The industrial design sector leads the design of consumer products that sell in
high volumes and thereby drive the production and use of many chemicals of concern to EPA.
DfE's industrial design sector partnership will bridge the  gap  between green chemistry and
engineering and their application to green the high production volume consumer products sold,
used and disposed of in the U.S. The partnership will focus on developing educational materials
for the designer, making information available to facilitate rapid decision making by industrial
14 http://www.epa.gov/dfe/projects/index.htm
15 Information provided by Noramtech Corporation, correspondence of 11/20/02
16 http://www.epa.gov/opptintr/dfe/pubs/auto/trainers/sprayandsave.htm

                                           V-48

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designers, recognizing ecological design excellence in high-volume products, and developing
product-specific partnerships to achieve measurable results.

       In FY 2005, DfE expects to broaden its industrial design partnership to design and bring
to production three major consumer items.  We will expand the diisocyanate work to additional
sectors such as consumer products and casting binders in foundries. DfE will focus on priority
chemicals where we can achieve a significant return on our investment.  We will ensure that our
partnerships obtain measurable reductions of priority pollutants and align with the American
Chemistry Council's Responsible Care Program.  DfE will finalize the  Environmental Security
Supplement to the Integrated Environmental Management System Guidance.  Other  likely
partnership candidates include reduction of lead and brominated flame retardants in PVC wiring.

       EPA's Design for the Environment  (DfE) Program has proven its ability to deliver
quantifiable environmental results, contributing directly to EPA's long-term strategic and annual
outcome-based pollution prevention performance measures.  Additional resources in FY 2005
will enable this successful program to increase these results  by  expanding its collaborative
partnerships to several  additional small  business  sectors.  New  partnership targets will  be
determined based on a combination of factors including the level and potential significance of
pollution prevention results anticipated and the interest and need of companies in such sectors for
EPA technical assistance.  Initial sectors under consideration for attention in FY 2005 include
optimizing  formulations for automotive paint  and floor care and finishing products.  These
sectors offer  great opportunity for reduction of Hazardous Air Pollutants  and toxic chemicals
such as  diisocyanates.    This high-production  volume  chemical is the  leading cause  of
occupational asthma. Consideration will also be given to expanding our industry partnership on
flame retardants beyond  flexible foam. Industry is working to comply with enhanced fire safety
standards and would like to partner with EPA to look holistically at furniture to ensure that they
do not use  flame retardants that could endanger human health or the environment. Some flame
retardants have been shown to occur widely in human tissue. Some  of the increased results
anticipated from these expanded  activities will occur in FY 2005, and additional environmental
benefits  will be measurable  in  2006 and beyond as  new  techniques and technologies are
developed.

RCRA Waste Minimization and Recycling

       The Resource Conservation Recovery Act (RCRA) Waste Minimization Program works
with industries, government agencies, and communities to find ways to help organizations reduce
the amount of waste they generate. EPA's newest waste minimization effort is the National
Waste Minimization Partnership  Program, which is a voluntary program that encourages results
by  publicly  recognizing  and  showcasing  the  source reduction,  recycling  and advanced
manufacturing accomplishments of member partners who commit to reducing wastes containing
Waste Minimization Priority Chemicals (WMPCs). These chemicals  are found in hazardous
waste and are documented contaminants of air, land, water, plants and animals.

       EPA set goals of reducing 30 priority list chemicals from hazardous waste by 50 percent
between  1991 and 2005.  In FY 2003, EPA analyzed TRI 2001 data and concluded that a 53
percent reduction (from the 1999 baseline) has been achieved. The Agency anticipates achieving
additional reductions of 2 percent per year in 2004 and 2005 (to 55% in 2004; to 57% in 2005)
based on the original 1991 baseline, using voluntary programs almost exclusively. In 2004 EPA

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and its state partners will develop a new baseline, using 2001 TRI data.  By 2008, EPA will
reduce the amount of priority chemicals in hazardous waste streams by 10 percent based on 2001
baseline data.

       In FY 2005,  EPA will implement aspects of the  Resource Conservation Challenge
through the National Waste Minimization Partnership  program to reduce  hazardous wastes
containing priority chemicals.   EPA  will sponsor industry workshops, encourage increased
technical assistance and information sharing, and publicly recognize industry  leaders.  Regional
and state  staffs  will encourage partners and aid in identifying waste minimization goals and
avenues for achieving them cost-effectively. EPA expects to expand its work from five industrial
pilot facilities to other  key industrial  sectors such as facilities generating lead and cadmium
containing hazardous wastes. EPA will  also encourage  the piloting of chemical management
systems which create a positive economic incentive for chemical suppliers to partner in finding
ways to reduce chemical use.

Resource Conservation Challenge

       The multi-office Resource Conservation Challenge (RCC)  challenges all Americans -
makers of goods, sellers of goods, and buyers of goods  to  prevent pollution and promote
recycling  and reuse; reduce priority chemicals at all life  cycle stages; and conserve energy and
materials. The RCC is a major national effort to find flexible,
yet more protective ways to conserve  our valuable resources
through pollution prevention,  waste  reduction and energy
recovery activities that will improve  public health and the
environment. The RCC identifies areas of program focus, or
"challenges" that.are ready for voluntary partnerships. Each of
these challenges works to resolve national  environmental
problems  by finding environmentally acceptable  solutions.
The program currently is coordinating across EPA offices to
address environmental problems in the electronics, buildings,
hospitals, paper production, and priority chemicals areas.
RESOURCE GQMSEH¥ffl10N
Categorical Grant: Pollution Prevention

       Pollution Prevention Grants to States and Tribes help support a technical assistance,
education and outreach infrastructure at the local level to assist businesses and industries in
identifying better strategies and solutions to reducing waste and pollution at the source. 17 The
grants also  stimulate new non-regulatory strategies to preventing pollution. State and Tribal
pollution prevention programs address the transfer of potentially harmful pollutants across  all
environmental media: air, water, and land.

       P2 grant projects have demonstrated that facilities have many opportunities to protect the
environment by  implementing pollution prevention, and that source  reduction can be a cost-
effective way of meeting or exceeding Federal and State regulatory requirements. Successful  P2
17 U.S. Environmental Protection Agency, Office of Pollution Prevention and Toxics. Pollution Prevention Grants Web Site,
http://www.epa.gov/p2/grants/index.htm. Accessed September 9,2003.
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grant projects have yielded decreases in facility emissions and discharges which lead to less
stringent regulatory and permitting requirements, increases in production rates that correlate to
decreasing environmental  costs, elevated investments in new and better  technologies, and
savings that directly impact the overall profitability of a business.  EPA recently completed a
summary of the P2 grant program from 1988 that includes an analysis of funding by organization
type, sectors targeted, and activities conducted, (http://www.epa.gov/p2/grants/state/index.htm)

       EPA is working to strengthen the nation's network of regional State and Tribal Pollution
Prevention Roundtables. The  Regional Pollution Prevention Roundtables  support pollution
prevention and "beyond regulatory compliance" activities through information  sharing, issue
discussion and program  development among member organizations.  The Roundtables  are
collections of regional pollution  prevention  professionals that share  a common mission  to
prevent pollution before it becomes a problem.  They serve as forums to share ideas and discuss
successful efforts at preventing pollution and to discuss issues and share technical information
and thereby save time, money and resources.

       In FY 2003, the National Pollution Prevention Roundtable  conducted a state survey and
produced a report entitled "An Ounce of Pollution Prevention,"  which summarized pollution
prevention results from the states
over  the last ten  years.   The
report revealed  that  more than
167  billion pounds of pollution
were prevented, not just treated
and controlled. In addition, more
than 4  billion gallons  of water
were conserved.
O
        "An Ounce of Pollution Prevention is
      Worth Over  167 Billion Pounds of Cure"
      A Decade of Pollution Prevention Results, 1990 - 2000

                               Resources Conserved
                             •  215 million kWh of
                               energy
                             •  4.1 billion gallons of
                               water
                             •  $666 million in cost
                               savings
                                         167 Billion Pounds of
                                        Pollution Prevented by
                                             Media
                                    Source: National Pollution Prevention Roundtable, January 2003 report on achievement of
                                    state and local P2 programs
       Effective management of
government operations requires
measuring the  results  of  our
work.  EPA will work with the
National  Pollution  Prevention
Roundtable to develop a national
pollution   prevention   results
reporting   system   that   will
provide annual information on a core set of pollution prevention result measures.   These P2
performance measures will also be incorporated into the P2 State Grants so that states will focus
some of their efforts on the measurement of the results of their program activity.

       EPA will also work to build pollution prevention activities and infrastructure on Tribal
lands and better coordinate Tribal and  State pollution  prevention activities through Tribal
participation in the nationwide pollution prevention roundtables.

       P2 State and Tribal Assistance Grants have proven their ability-to deliver quantifiable
environmental results, contributing directly to EPA's long-term strategic and annual outcome-
based pollution prevention performance measures. Additional resources in FY 2005 will enable
this successful program to  increase these results by allowing EPA to use internal EPM funds to
support the P2Rx network, allowing at least $1 million of P2 STAG funds currently supporting
                                           V-51

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this work to be redirected to State and Tribal grantees.  EPA increased its outcome-based FY
2005  P2 Annual  Performance Measures to reflect the increased results anticipated from these
expanded activities.

Categorical Grant: Environmental Information

       This program encourages  state and other partners' data integration efforts and  their
participation in the Network.  State, Tribal, and EPA data on the Network will both facilitate
understanding of various environmental issues and serve as a precursor to understanding the data
needed to fully  comprehend environmental conditions and trends  and, thus,  make better-
informed environmental and human health decisions.

       The  program has four main parts: Network Readiness; Implementation; Collaboration;
and Support Grants.   These grants  will increase state and Tribal capacity  to integrate  their
environmental data, reduce reporting burden, enhance electronic reporting, provide public access
to data, and participate in the Exchange Network.

Regulatory Innovation

       In FY  2005, the Agency will continue  to test innovative ideas through demonstration
projects, such as those related to integrating Environmental Management Systems into permits,
and removing regulatory impediments to "lean manufacturing" techniques.

       The  Agency will expand its  efforts to promote innovative environmental management
strategies to states and Tribes through a proposed increase in resources available under the  State
Innovation Grant Program.  By expanding this program with an additional $750,000, EPA will
build  on EPA-state collaborations that began in FY 2002.  The grant program allows states to test
innovative ideas, such as using Environmental Management Systems in the permitting system to
improve    environmental    results    while
achieving   resource   efficiencies.  Because
current  technology-based  standards  don't
address upstream pollution reduction and can
lock in outdated  technologies, EPA wants to
support the  states hi  their efforts  to promote
performance-based alternatives  that  provide
incentives  for   the  development   and
implementation of new management systems
and technologies.  The grant program assists
states, which are at the front line of permitting
 Five Key Traits of Enhanced Environmental
                Protection

1.  Focus on environmental performance and results
2.  Emphasize greater environmental responsibility,
   not just pollution control
3.  Integrate environmental management more folly
   across facilities, problems, and media
4.  Use market-based incentives to achieve
   environmental goals
5.  Emphasize partnership and stakeholder
and  regulatory  activities,  hi improving the      collaboration.
efficiency of their environmental programs ~
a high priority given shrinking state resources.

       In FY 2005, EPA will broaden its capacity to conduct program evaluations of innovative
projects  and investments, including supporting third-party evaluations.   This work  responds
directly to criticism from Congress, OMB, and GAO about the Agency's capacity for evaluating
innovation and  for explaining the environmental  outcomes  of its regulations, policies and
activities.  It  also responds to the "Budget  and Performance Integration" component of the

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President's Management Agenda and subsequent calls for Agency evaluation results by the
Office of Management and Budget.

       Successful   environmental pilot project tools  and techniques will be evaluated  and
replicated to drive these innovative approaches deeper  into EPA and State core programs  For
example, in 2005, EPA will continue to facilitate the transfer to states and priority environmental
problem areas the  Environmental Results Program (ERP) model. This innovation originated in
Massachusetts in the late 1990s.  The ERP model interactively links compliance assistance, self-
certification  and   performance  measurement.    This   approach  gives  small  business
owners/operators better knowledge and understanding of their regulatory requirements, provides
detailed measurement data on the performance of individual facilities as well as whole business
sectors, and  assists state  regulatory  agencies in  targeting  their technical assistance  and
enforcement efforts. Nine states are implementing ERP projects across  seven small-business
dominated sectors.

       Strong partnerships with businesses, states and Tribes are an important element of EPA's
Innovations Strategy.  In FY 2005, the Agency will implement a Performance Track Corporate
Recognition Program, an extension of the current facility-based recognition program. Through
program feedback and evaluation, EPA continues to improve the Performance Track program
and in FY 05,  will reduce administrative burdens and increase  flexibility in ways that allow
greater efficiency  and  enable  members to
achieve and  measure  beyond-compliance
performance.
EPA seeks to establish Performance Track as a "gold
standard" for environmental performance — a standard
that facilities will strive  to attain.   To encourage
facilities to aim for this standard, EPA adds value to
Performance  Track membership through recognition,
networking,  and  regulatory  and   administrative
incentives.
       In FY 2005, EPA will make greater
use of the Sector Strategies  Program to
achieve better environmental  results  with
greater efficiency.  The program will begin
to implement sector strategies with 12 major industrial and service sectors through regulatory
changes  designed  to  reduce productivity barriers,  and through targeted  approaches such as
environmental management systems to prompt sector-wide stewardship.   The Agency will
extend participation in  the program  through more multi-sector initiatives and greater state
involvement,  following the model of the successful public dialogue convened in FY 2004 on
barriers to beneficial reuse of industrial materials.  EPA also will expand the use of these
collaborative  sector partnerships  to explore new ways  of doing business, drawing upon the
expertise and impact of sector partners to craft strategies for market-based approaches, targeted
technology development, greater  voluntary stewardship,  and collective  problem  solving in
support of the Agency's mission and goals.

       The Office  of Policy, Economics and Innovation continues to work on implementing the
National Environmental Performance Track Program (NEPT). NEPT is a program designed to
motivate and reward companies and  other  regulated entities that are  top  environmental
performers to recognize facilities that consistently meet their legal requirements, implemented
EMS,  and made tangible  improvements  to  their environmental performance. Entry  criteria
include showing implementation of an EMS,  presenting a record of continued compliance,
certifying  current  compliance,  demonstrating  specific  environmental  achievements,  and
committing to future improvements, including public outreach and annual performance reporting
(including summaries  of audit findings). Incentives for participation include Agency recognition,

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lowered  priority  for routine  inspections, access to  Audit Policy penalty  mitigation and
recognition  of good faith participation in the program hi case  of a discretionary penalty
assessment.

       In addition, the Office of Policy, Economics and Innovation participates hi projects under
the 1998 Joint EPA/State  Agreement  on Innovation and other innovative partnerships. The
enforcement program will focus on ensuring these projects  are legally enforceable where
necessary, and will provide accountability and transparency for federal and non-federal facilities
participants. The program also assists hi verifying and evaluating project results.

       In FY  2005, OPEI  is  funding  the  enhancement and  transfer of  the innovative
Massachusetts Environmental Results Program (ERP). ERP consists of a set  of three linked
tools— compliance assistance, inspections,  and performance measurement, including an annual
certification of compliance signed by a senior company official. ERP has unproved performance
for small businesses, and resulted in savings for these businesses, allowing the State and EPA to
focus resources on higher priority environmental problems. The Agency will continue to provide
technical and  legal assistance to states developing  an ERP, as well as foster the sharing of
information and materials between states.

       Last but not least, in FY 2005, OPEI will  continue to assure  that EPA responsively
addresses small business  environmental issues, and  assists small business to improve their
environmental performance through innovative and cost-effective mechanisms.    These efforts
will be guided by the newly revised Small  Business Strategy through a process that involves: 1)
developing new and innovative outreach vehicles; 2) building a better knowledge base; 3) setting
priorities for developing regulations, policies and other initiatives; 4) unifying and coordinating
programs within EPA; and, 5) measuring and evaluating the results of these efforts.

Regulatory/Economic Management and Analysis

       EPA will promote the  use of economics hi the
design  and  assessment  of  management  solutions to
environmental issues facing Agency decision makers.  The
Agency will support the development of economic tools to
apply  hi analyses  of the  economic benefits, costs and
impacts of regulatory programs. Using economic tools in
the design and assessment of management  solutions to
The  causes  and  consequences  of
environmental    problems    have
important economic dimensions. This
is  why  environmental  economic
analysis is critical to the development
and implementation of effective and
progressive environmental policy.
environmental issues will aid in the cost-effective use of
Agency and  societal resources,  hi addition, EPA will conduct and supervise research  and
development on economic analytic methods; lead production of cross-Agency economic reports;
provide guidance for performing economic analyses; and promote consistency hi the preparation
and presentation of economic information hi the Agency.

       EPA will continue to improve the Agency's regulatory and policy development process
hi FY 2005.   The Agency will  strengthen  the policy analysis  of key regulatory and non-
regulatory actions, improve the regulatory and policy action information management system,
and improve the economic analysis underlying Agency actions.  Multimedia analysis  will
include policy option analysis, regulatory analysis, and analysis of innovative policy approaches.
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       The regulatory  development process ensures the Agency's  compliance with various
statutes and Executive  Orders.  Through improved and streamlined regulatory processes that
include increased public access, EPA is working to provide quality information to stakeholders.
In FY 2005, the Agency will continue  to  advance these objectives by ensuring that EPA
rulemakings adhere  to all  applicable statutory  and  executive  requirements, and  achieve
environmental results with a rninimum burden  on the public.  The Agency will continue its
outreach to  small businesses, small governments, and small non-profits, establishing formal
mechanisms to build small entity partnership involvement in Agency rulemakings.  EPA will
complete Regulatory Flexibility analyses for all rulemakings that may have a significant impact
on a  substantial number of small entities, and will  continue a  small community's outreach
program to gather information on the potential impact of EPA's rules on small communities.

State and Tribal Performance Grant Fund

       EPA will make available in the FY 05, through a competitive process, $23M to states and
tribes for all activities normally eligible for categorical grant assistance. The award process will
be performance  focused, with winners selected on  the basis of the proposed environmental
and/or health outcomes.  The program will require that grantees show how their proposal directly
supports the Agency's mission and strategic plan; consider the  availability of matching funds;
allow for multimedia approaches; and show tangible performance-based environmental or health
outcomes. These grants will require that the grantees design up-front and build into the program
performance measurement, the ability to evaluate the effectiveness  of the program so that we can
learn and make  good  management  decisions about  investing   additional  resources.   The
Performance Grants differ from other grants that may use formula driven resource distribution
methods or consider performance measurement after the initial program design. The performance
grants will help EPA clearly articulate expectations of states and tribes hi terms of environmental
results, rather than only of process.  These grants will encourage states to experiment with bold
forms  of  regulatory  and   non-regulatory management, such  as facility-wide   permits,
performance-based  management  contracts,  cap-and-trade systems, pollution  taxes  or fees,
information requirements, collaborative approaches to setting goals and designing strategies for
protecting watersheds,  and compliance-assistance tools  of various kinds.   These grants will
develop and deploy approaches to environmental protection that can deliver measurable results
more effectively or efficiently, and be models for implementation across the nation. The lessons
we learn from these performance based competitive grants can help EPA focus limited resources
on the most effective strategies and-influence the distribution of future grant awards. The grants
will  generally encourage states to invest their energies in measuring environmental conditions,
and in organizing their planning around priorities and strategic goals.  The award of grants will
be influenced by state planning  capability.  Within EPA, these grants  will  help build  the
infrastructure  for  multimedia, performance-based   management and  help  cut  across   the
fragmented media based EPA organizational structure.

NEPA (National Environmental Policy Act) Implementation

       EPA's Enforcement and Compliance Assurance Program reviews environmental impacts
of proposed major federal actions as required by NEPA, §309 of the Clean Air Act, the Antarctic
Science, Tourism, and Conservation Act (ASTCA), and the Executive Order on environmental
justice; and develops policy and technical guidance on issues related to NEPA, the Endangered
Species Act, the National Historic  Preservation Act and relevant Executive Orders. The  program

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emphasizes cooperation with other Federal agencies to ensure compliance with  applicable
environmental laws and better integration of pollution prevention and ecological risk assessment
into their programs, while targeting high impact federal program areas, such as water resources
and transportation/energy related projects.  The program also manages the Agency's official
filing activity for all federal Environmental Impact  Statements (EIS)  in accordance with a
Memorandum of Understanding with the Council on Environmental Quality.

       In FY 2005, the Agency will continue to work with other federal agencies to streamline
and improve  then- NEPA process  hi  such key areas as approvals  of highways and airport
expansions; hydro-power/nuclear power plant re-licensing, coal bed methane development and
other  energy-related  projects; military base  closures;  flood control  and port development
projects; and  management of national forests and public lands.  In FY 2005, 70 percent of the
significant impacts identified by  EPA  during the NEPA review of all major proposed federal
actions  will be mitigated hi order to preserve air and  water  quality,  wetlands, aquatic and
terrestrial habitats, and endangered  species; to protect Environmental Justice communities; and
to prevent degradation of valued environmental resources.

       The NEPA Implementation program also guides EPA's own compliance with NEPA and
other  applicable statutes, and with related environmental justice requirements.  These efforts
include EPA-issued new source  National Pollutant Discharge Elimination  System (NPDES)
permits in regions where a state/tribe has not assumed the NPDES program; for off-shore oil and
gas sources; for Clean Water Act  (CWA) wastewater treatment plant grants; and for special
appropriation grants for wastewater, water supply and solid waste collection facilities.  In FY
2005, 90 percent of EPA projects  subject to NEPA Environmental Assessment or Environmental
Impact  Statement requirements (water treatment facility project and other grants, new source
National Pollutant Discharge Elimination System  permits and EPA facilities)  are expected to
result in a finding of no significant environmental impact.
FY 2005 CHANGE FROM FY 2004

EPM

•      (+$5,000,000): This increase is a redirection from the Agency's P2 Research program to
       other Agency P2 efforts that have shown results in reducing pollution. The following P2
       programs will  be funded:   The Green Suppliers Network will  allow the program to
       increase results by working to encourage both State P2 technical assistance providers and
       local Manufacturing Extension Partner centers to form collaborative relationships under
       GSN.  The Green Chemistry Challenge Program will focus on existing and emerging
       chemicals of concern, and the DFE Program will expand its collaborative partnerships to
       several additional small business  sectors.   The  increase will also support the P2Rx
       network.

•      (+$750,000):   Expand  the  Innovations  Grants  Program,  a program that  provides
       assistance to States and Tribes through a competitive process  to  support innovative
       approaches to help meet and exceed regulatory environmental requirements and improve
       participants' stewardship of and impact on the environment.
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STAG
       (+$23,000,000)  Create a new State and Tribal  Performance Grant Fund that will be
       multimedia in  scope and  competitively awarded  based on anticipated performance and
       results.

       There are additional increases for payroll,  cost of living, and enrichment for  new and
       existing FTE.
ANNUAL PERFORMANCE GOALS AND MEASURES

GOAL: COMPLIANCE AND ENVIRONMENTAL STEWARDSHIP

OBJECTIVE: IMPROVE ENVIRONMENTAL PERFORMANCE THROUGH POLLUTION
PREVENTION AND INNOVATION

Reduction of Industrial / Commercial Chemicals

In 2005    Prevent, reduce and recycle hazardous industrial/commercial chemicals and improve environmental
           stewardship practices.

In 2004    Prevent, reduce and recycle hazardous industrial/commercial chemicals and municipal solid wastes.

In 2003    FY 2003 data will  be  available in 2005 to verify the quantity of toxic release  inventory  (TRI)
           pollutants released, disposed of, treated or combusted for energy recovery in 2003, (normalized for
           changes in industrial production) will be reduced by 200 million pounds, or two percent, from 2002.
Performance Measures:
                TRI   non-recycled
Reduction   of
(normalized)

Alternative  feed  stocks, processes, or  safer
products identified  through  Green Chemistry
Challenge Award

Number of participants  in  Hospitals  for  a
Healthy Environment

Quantity   of  hazardous   chemicals/solvents
eliminated   through  the  Green  Chemistry
Challenge Awards Program

For eco-friendly detergents, track the number of
laundry detergent formulations developed.

Percent reduction in Toxics Release Inventory
(TRI) reported toxic chemical  releases at Federal
Facilities.

Percent reduction  in  both  Toxics  Release
Inventory  (TRI)   chemical  releases  to  the
environment from the business sector per unit of
production ("Clean Index")

Percent reduction   in   TRI   chemicals  in
production-related  wastes  generated  by  the
       FY 2003
       Actuals
waste  Data lag
FY 2004       FY 2005
Pres. Bud.      Pres. Bud.
200 Million


210
                                                         2000


                                                         150 million



                                                         36


                                                                      32%



                                                                      20%




                                                                      10%
Ibs


Prod/proc
(Cum)


Participants


Ibs



formulations


Releases
(Cum)


Releases
(Cum)



Waste (Cum)
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Performance Measures:                  '      FY2003      FY2004      FY2005
                                            Actuals       Pres. Bud.     Pres. Bud.
business sector per unit of production ("Green
Index").
Reduction in overall pounds of pollution.                                    34 Billion     Pounds
                                                                                     (Cum)
Millions of dollars saved through reductions  in                              134 Million    Dollars
pollution.                                                                             (Cum)

Annual cumulative quantity of water conserved                               1.5 billion     Gallons
                                                                                     (Cum)
Billions of BTUs of energy conserved.                                       143 Billion    BTU (Cum)


Baseline:   The baseline for the TRI non-recycled wastes measure is the amount of non-recycled wastes in 2001
           reported FY2003. The baseline for eco-friendly detergents is 0 formulations in 1997. The baseline for
           the alternative feed stocks / processes measure is zero in  2000.   The baseline for the quantity of
           hazardous chemicals / solvents  measures is zero pounds  in the  year 2000.  The baseline for the
           hospitals measure is zero  in FY2001. The baseline reference point for reductions of pollution and
           conservation of BTUs and water will be zero for 2003. The baseline for money saved will be 2003.
           The baseline for reduction in CO2 will be zero for 1996.  The baseline for the Clean and Green Index
           would be 2001 levels. The baseline for  chemical releases is 2001 level. The  baseline for chemical
           production related wastes is 2001 level.  Note: Several output measures were changed to internal-only
           reporting  status in  2005.    Annual  Performance  measures  under  development  for EPA's
           Environmentally Preferable Purchasing program for the FY2006 Annual Performance Plan.

Innovation Activities

In 2005 Performance Track members collectively will achieve  an annual reduction of 600 million gallons in water
        use; 2.5 million MMBTUs in energy  use; 15,000 tons of solid waste; 6,000 tons of air releases; and 10,000
        tons in water discharges, compared with 2001 results.

Performance Measures:                        FY2003          FY2004          FY2005
                                            Actuals           Pres. Bud.        Pres. Bud.
Specific annual reductions in five media/resource                                    5                  media
areas: water use,  energy  use, solid waste,  air                                                       reductions
releases, and water discharges.
Baseline:       The baseline year is 2001. The FY 2005 specific reductions planned are that Performance Track
               members collectively will achieve annual reductions, compared with 2001, of 600M gallons of
               water used; 2.5M MMBTUs of energy used; 15,000 tons of solid waste; 6,000 tons of air releases;
               and 10,000 tons of water discharges.
EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLAN

An efficiency measure for the Green Chemistry Program is being developed.


VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure:


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Percent  reduction in both Toxics  Release Inventory (TRI) chemical  releases to  the
environment from the business sector per unit of production ("Clean Index").

Percent reduction in TRI chemicals in production-related wastes generated by the business
sector per unit of production ("Green Index").

Percent reduction in Toxics Release Inventory (TRI) reported toxic chemical releases at
Federal Facilities.

Performance  Database:  TRIM: Toxics Release  Inventory Modernization, formerly  TRIS
(Toxics Release  Inventory System) provides  facility/chemical-specific data quantifying the
amount of TRI-listed chemicals entering wastes associated with production process in each year.
The total amount of each chemical in  production-related wastes can be broken out by the
methods  employed in managing  such wastes, including recycling, energy recovery, treatment,
and disposal/release.  Amounts  of these wastes that  are not recycled are tracked for  this
performance measure.

Data Source: Regulated  facilities report facility-specific, chemical-specific release, waste and
recycling data to  EPA. For example, in  calendar year 1999, 22,639 facilities  filed  84,068 TRI
reports.

Methods, Assumptions, and Suitability: TRI data are collected as required by sections 313 of
EPCRA and 6607 of Pollution Prevention Act (PPA) (40 CFR ' 372; www.epa.gov/tri'').  Only
certain facilities in specific Standard Industrial Classification (SIC) codes are required to  report
annually the quantities of over 650  listed toxic chemicals and chemical categories released to
each environmental medium and otherwise managed as waste (40 CFR '372; www.epa.gov/tri/').
Regulation requires covered facilities to  use monitoring, mass balance, emission factors and/or
engineering calculations approaches to estimate releases and recycling volumes. For purposes of
the Clean and Green Index performance measures, data controls are employed to facilitate cross-
year comparisons: a subset of chemicals and sectors are assessed that are consistently reported in
all years; data are normalized to control  for changes in production using published U.S. Bureau
of  Economic Analysis  (BEA)  gross product  indices (chain-type  quantity  index for the
manufacturing sector).  [Please note,  the federal facility measure data are not  normalized to
control for changes in production].

QA/QC  Procedures: Most facilities use EPA-certified automated Toxics Release  Inventory
(TRI) FORM R reporting tools,  which contain automated error checking mechanisms.  Upon
receipt of the  facilities'  reports, EPA  conducts automated  edits, error checks, data scrubs,
corrections and normalization during data entry  and subsequent processing to  verify that the
information provided by the facilities is correctly entered in TRIM. The Agency does not control
the quality of the data submitted by the  regulated community. EPA does, however, work with
the regulated community to improve  the quality of then- estimates.

Data Quality Review:  The  quality of the data contained in  the  TRI  chemical reports is
dependent upon the quality of the data that the reporting facility uses to estimate its releases and
other waste management  quantities.  Use  of TRI Form R by submitters and EPA's performance
data reviews combine to  help assure data quality. The GAO Report, Environmental Protection:

                                          V-59

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EPA Should Strengthen Its Efforts to Measure and Encourage Pollution Prevention (GAO - 01 -
283),  recommends that EPA strengthen the rule on reporting of source reduction activities.
Although EPA agrees  that source reduction data are valuable, the Agency has not finalized
regulations to improve reporting of source reduction activities by TRI-regulated facilities.

Data  Limitations: Use of the data should be based on the user's understanding that the Agency
does  not have  direct assurance of the accuracy of the facilities' measurement and reporting
processes. TRI  release  data are reported by facilities on a good faith, best-estimate basis. EPA
does not have the resources to conduct on-site validation of each facility's reporting data, though
on-site investigations do occur each year at a subset of reporting facilities.

Error Estimate: From the various data quality efforts, EPA has learned of several reporting
issues such as incorrect assignment of threshold activities and incorrect assignment of release
and other waste management quantities (EPA-745-F-93-001; EPA-745-R-98-012;
wwrw.epa..gov/tri/tridata/data__quality reports/index.htm; www.epa.gov/tri/report/index.htm.)

For example, certain facilities incorrectly assigned a 'processing' (25,000 Ib) threshold instead of
an 'otherwise use' (10,000 Ib) threshold for certain non-persistent,  bioaccumulative and toxic
(PBT) chemicals, so they did not have to report if their releases were below 25,000 Ibs. Also, for
example, some  facilities incorrectly reported fugitive releases instead of stack releases of certain
toxic  chemicals.

New/Improved Data or Systems: EPA plans to develop regulations for improving reporting of
source reduction activities by TRI reporting facilities.

References:   www.epa.goy/triy and  additional citations  provided above.   (EPA-745-F-93-
001 ;EP A-745-R-98-012:http://www.epa.gov/tri/report/index.htm:
www.epa.gov/tri/tridata/data_qualitv reports/index.htm:      wwvt?.epa.gov/tri/report/index.htm
Bureau    of     Economic     Analysis     (BEA)     indices     are    available     at
http://www.bea.gov/bea/regional/gsp/

FY 2005 Performance Measure:

•      Reduction in overall pounds of pollution
•      Billions of BTUs of energy conserved
•      Billions of gallons of water saved
•      Millions of dollars saved through reductions in pollution
•      Reduction in carbon dioxide (CO2) emissions from a baseline year of 1996. (Green
       Chemistry only)

       The Agency's Pollution Prevention programs include Green Chemistry,  Design for the
Environment, Green Engineering, and other Pollution Prevention (P2) Programs.  Each of these
programs operate under the principles of the Pollution Prevention Act and work with others to
reduce waste at the  source, before it is generated.  These programs are designed to facilitate the
incorporation  of pollution prevention concepts and principles  into  the daily  operations  of
government agencies, businesses, manufacturers, nonprofit organizations, and individuals.
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Performance Database:
Green Chemistry (GC): EPA is developing an electronic database ("metrics" database) which
will allow organized storage and retrieval of green chemistry data submitted to EPA on
alternative feedstocks, processes, and safer chemicals.  The database is being designed to store
and retrieve, hi a systematic fashion, information on the environmental benefits and, where
available, economic  benefits that these alternative green chemistry technologies offer.  The
database is  also  being designed to track the quantity of hazardous chemicals  and solvents
eliminated through implementation of these alternative technologies.

Design for the Environment (DfE):  DfE does not have a performance database.  Instead, DfE is
planning to develop an evaluation spreadsheet for its main project approaches (i.e., Life Cycle
Assessment,  Formulator,  Best Practices, Cleaner Technology Substitutes Assessment, and
Supply Chain).  Spreadsheet content will vary by approach, and generally will include measures
comparing baseline technologies or products to "cleaner" ones, as well as information on partner
adoption and/or market share of cleaner alternatives; for example, the DfE formulator approach
.tracks chemical improvements (such as  pounds of chemicals of concern no longer used by
partners, and conversely pounds of safer ingredients) and resource savings. This information
will allow benefit calculations.

Green Engineering (GE): Similar to the Green Chemistry Program, EPA will be developing an
electronic database to keep track of environmental benefits of GE projects including, gallons of
water, British Thermal Units (BTUs) and dollars  saved  and pounds of carbon dioxide (CO2)
emissions eliminated.

Pollution Prevention (P2)  Programs: EPA  is working  with state and local P2 programs to
develop  a national database that will provide data on environmental outcomes  (the core P2
metrics included  in the above performance measure). Many EPA Regional offices', state and
local P2 programs are currently collecting data on P2 program activities, outputs, and outcomes.
EPA will be working with these programs to reach consensus on standardized metrics, including
definitions, and to establish an ongoing system to gather data on these metrics.  The system will
include new  reporting requirements in  EPA P2 grants and the cooperation of key stakeholder
groups, such as the National Pollution Prevention Roundtable (which produced  a January 2003
report providing baseline data on the above  metrics for the period 1990-2000). Data collected
from the program will be placed in a new national database, facilitating convenient data storage
and retrieval.

Data Source:
Green Chemistry (GC): Industry  and  academia submit nominations  annually  to  OPPT hi
response to the Presidential Green Chemistry Challenge Awards.  Environmental and economic
benefit information is included hi  the nomination packages.  The metrics database pulls this
benefit information from the nominations.

Design for the Environment (DfE): The  source of DfE's evaluation information varies by the
approach and  the partner industry.    For example,  in  DfE's  formulation  improvement
partnerships, partners provide proprietary information on both their original formulation and
their  environmentally improved one.   Partners sign a  memorandum of understanding with
EPA/DfE which includes information on how the company uses cleaner chemistry to formulate a
product, the environmental  and health benefits  of the product,  and  customer and sales

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information. For other partnerships, data sources typically include technical studies (e.g., cleaner
technology  substitutes  assessments,   life-cycle   assessments)  and   market/sales/adoption
information from associations.

Green Engineering (GE): Data will come from profiles of recognized projects by technical
journals or organizations, such as the  American Institute of Chemical Engineers, or directly
reported by project leaders on industry projects or joint academia-industry projects.

 Pollution Prevention (P2) Programs: State and local P2 programs will submit data as described
above.

Methods, Assumptions, and Suitability:
Green Chemistry (GC): This is an output measure tracked directly through OPPT record-keeping
systems.  No models or assumptions or statistical methods are employed.

Design for the Environment (DfE): Methods and assumptions  vary  by approach and partner
industry. Each DfE partnership identifies and focuses on a unique set of chemicals and industrial
processes. For most DfE approaches, the general method is to 1) develop a model for a "typical"
or "average" facility, 2) assess the differences between traditional and alternative technologies
on metrics such as toxics use, resource consumption, cost, and performance, 3) track market
share of alternative technologies over time, and 4) multiply the increase in use of alternative,
cleaner technologies by the environmental, cost, and performance differences identified in Step
2. Through this quantitative process, the Agency is able to calculate the benefits generated by the
cleaner technology: e.g. how much toxics use reduction is occurring,  how much less resources
are consumed?   Similarly, for DfE's formulation improvement  approach, the method is to
analyze environmental (e.g., toxics use,  resource consumption) and cost differences between the
old and improved formulations. This proprietary information is provided by our partners and
sales information.  For each approach, we will develop a spreadsheet that includes the methods
and assumptions.

Green Engineering (GE): The  information will be tracked directly through EPA record keeping
systems.   No models or statistical extrapolations are expected to be used.

 Pollution Prevention (P2) Programs: The data will come from  state and local P2 programs as
described above. No models or assumptions or statistical methods are employed.

QA/QC  Procedures:   All Pollution  Prevention and  Toxics programs operate under  the
Information Quality Guidelines as found at http://www.epa.gov/oei/qualityguidennes/index.html
and under the  OPPT Quality Management Plan (QMP). OPPT Quality Management Plan is for
internal use only.

Green Chemistry: Data undergo a technical screening review by OPPT before being uploaded to
the database to determine if they adequately support the environmental benefits described in the
application.  Subsequent to OPPT screening, data are reviewed by an external independent panel
of technical experts from academia, industry, government, and NGOs.  Their comments on
potential benefits  are incorporated into the database. The panel is  convened by the Green
Chemistry Institute of the American Chemical Society, primarily for judging nominations
                                          V-62

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submitted to the Presidential Green Chemistry Challenge Awards Program and selecting winning
technologies

Design for the Environment (DfE):  Data undergo a technical screening review by DfE before
being uploaded to the spreadsheet. DfE determines whether data submitted adequately support
the environmental benefits described.

Green Engineering (GE): Data collected will  be reviewed to ensure it meets the EPA Quality
Guidelines in terms of transparency, reasonableness and accuracy.

Pollution Prevention  (P2) Programs: Data will undergo technical screening review by EPA and
other program participants (e.g., National Pollution Prevention Roundtable) before being placed
in the database. Additional QA/QC steps to be developed, as appropriate.

Data Quality Review: All Office of Pollution Prevention and Toxics (OPPT) programs operate
under     the       Information      Quality      Guidelines      as      found      at
http://www.epa.gov/oei/qualityguidelnies/index.html and under the OPPT Quality Management
Plan (QMP).

Green Chemistry (GC): Review of industry and academic data as documented hi U.S. EPA,
Office of Pollution  Prevention and  Toxics,  Green  Chemistry Program Files  available at
http://www,ejpa.gov/QpptintT/greenchemistry/

Design for the Environment (DfE): Not applicable.

Green Engineering (GE): Data collected will be reviewed to meet data quality requirements.

Pollution Prevention (P2) Programs: The new metrics and data system were based, in part, on
recommendations in  the  February 2001 GAO report, "EPA Should Strengthen Its Efforts to
Measure and Encourage  Pollution Prevention" (GAO-01-283). They also incorporate work by
such organizations as the  Northeast Waste Management Officials  Association, Pacific Northwest
Pollution Prevention Resource Center, and National Pollution Prevention Roundtable.

Data Limitations:
Green Chemistry (GC): Occasionally data are limited for a given technology due to confidential
business information (the Presidential Green  Chemistry Challenge Awards Program does not
process CBI).   It also  is occasionally unclear what the percentage market penetration of
implemented alternative green  chemistry technology (potential benefits vs. realized benefits) is.
In these cases, the database is so noted.
Design for the Environment (DfE): Occasionally data are limited for a  given technology due to
confidential business information.

Green Engineering (GE): There may be instances in which environment benefits are not clearly
quantified. In those instances, the data will be excluded.

Pollution Prevention (P2) Programs: Limitations arise from the reliance on individual state and
local P2 programs to gather data. These programs vary in  attention  to data collection from
sources within their jurisdictions, data verification and other  QA/QC procedures. Also, despite

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plans described above to move toward consistent metrics and definitions, some differences exist

Error Estimate:
Green Engineering (GE): There may be instances in which environment benefits are not clearly
quantified.  In those instances, the data will be excluded.

Not applicable for other programs contributing data to this measure.

New/Improved Data or Systems:
Green  Chemistry (GC), Design for the Environment  (DfE), Green Engineering  (GE):    The
American Chemistry Council (ACC) has  initiated an  industry self-monitoring program called
Responsible Care. Beginning in 2003, member companies will collect and report on a variety of
information. Measures tentatively include Toxic Release Inventory (TRI) releases; tons of CO2
equivalent per pound of production; total BTUs consumed per pound of production; systems for
assessing or, reassessing potential environmental, health, and safety risks; percentage of products
re-evaluated; percentage of commitments  for chemical evaluation programs; documentation of
process for characterizing and managing product risks; and documentation of communication of
risk  characterization results. Many of these measures are similar to the EPA program targets
identified under Goal 5, Objective 2.  These reports  may be an invaluable source of industry
baseline information. It is important that the EPA programs identified under Goal 5 evaluate the
utility of the reports generated under the  ACC's  Responsible Care Program in support of the
EPA's programs as well as the goals of Responsible Care. (CAPRM II, Chemical and Pesticide
Results Measures, March 2003 pp. 313)

Pollution Prevention (P2) Programs and Hospitals for a Healthy Environment (H2E): See
discussion in first item.

References:
Chemical and Pesticide Results Measures II: http://www.pepps.fsu.edu./CAPRM/index.html
Green Chemistry (GC): http://www.epa.gov/opptintr/greenchemistrv/
Design for the Environment (DfE): http://www.epa.gov/opptintr/dfe/
Green Engineering (GE): http://www.epa.gov/opptintr/greenengineering/
Pollution Prevention (P2) Programs: http://www.epa.gov/oppt/p2home/index.htm

FY 2005 Performance Measure;    Specific annual reductions in  five  media/resource areas:
water use, energy use, solid waste, air releases, and water discharges.

Performance  Databases: Both the Performance  Track On-Line (a Domino database) and the
Performance Track Members Database (a Microsoft Access database) store information provided
to EPA from members' applications and annual performance reports. Both databases contain the
same information; in fact, data from PTrack On-Line is transferred  electronically to the PTrack
Members Database, which is more useful for analysis.  Performance Track members select a set
of environmental indicators  on which to report performance  over  a three-year period of
participation.  The externally reported indicators (listed above) may or may not be included in
any  particular facility's set of indicators.  Performance Track aggregates and reports only that
information that a facility voluntarily reports to  the  Agency.  A facility may make progress
towards one of the above  indicators,  but if it is not among  its set of "commitments",  then
Performance Track's data will not reflect the changes occurring  at the facility. Similarly,  if a

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facility's performance declines in any of the above areas and the indicator is not included among
its set of commitments, that decline will not be reflected in the above results.

Members report on results in a calendar year.  Fiscal year 2005 corresponds most closely with
members' calendar year of 2005.  That data will be reported to the Performance Track program
by April 1, 2006.  The data will then be reviewed, aggregated, and  available for external
reporting in August 2006. (Calendar year 2004 data will become available in August of 2005.)

Data Source: All data are self-reported and self-certified by member facilities.

Methods, Assumptions, and Suitability:   Data collected from members'  applications and
annual performance reports are compiled and aggregated across those members that choose to
report  on the  given  indicator.  The data reflect the  performance results at  the  facility; any
improvements or declines hi performance are due to activities and conditions at the  specific
facility.  The data should not be interpreted to represent the direct results of participating in the
Performance Track program.   Additionally, while Performance Track asks that facilities report
results of an indicator for the facility as a whole, in some cases facilities report results for
specific sections of a  facility. This is not always clear in the reports submitted to the program.
For example, Member A commits to reducing its VOC emissions from  1000 tons to 500 tons
over a 3-year period.  In Year 1, it reports a reduction of VOCs from 1000 tons to 800 tons.
Performance Track aggregates this reduction of 200 tons with results  from other facilities. But
unbeknownst to Performance Track, the facility made a commitment to reduce its VOCs from
Production Line A and is only reporting on its results  from that production line.  The facility is
not intentionally hiding information from EPA, but it mistakenly thought that its commitment
could focus on environmental management activities at Production Line A rather than across the
entire facility. Unfortunately, due to increased production and a couple of mishaps by a sloppy
technician, VOC  emissions at Production Line B increased by 500 tons  in Year 1.  Thus, the
facility's VOC emissions actually INCREASED by 300 tons hi Year 1.  Performance Track's
statement to the public that the facility reduced its emissions by 200 tons is therefore misleading.

The data can be used  to make year-to-year comparisons, but reviewers and analysts should bear
in mind that Performance Track membership is constantly hi flux. Although members should
retain the same set of indicators for their three-year participation period,  as new members join
the program and others leave, the baseline constantly changes.

Due to unavoidable  issues regarding the tuning of the application period, a small subset of
reported data will represent two years of performance at certain facilities, i.e., the baseline will
be two years prior rather than one year.

QA/QC  Procedures: Data submitted  with applications and annual performance reports to the
program are reviewed for completeness and adherence to program formatting requirements.  In
cases where it appears possible that data is miscalculated or misreported, EPA or contractor staff
follows up with the facility.  If the accuracy of data remains under question or if a facility has
provided incomplete  or non-standard  data, the  database is coded to ensure that the  data is
excluded from aggregated and externally reported results.
Additionally, Performance Track  staff visit up to 20% of Performance Track member facilities
each year.  During those visits, facilities are asked about their data collection systems and about
the sources of the data reported to the program.

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Performance Track contractors  conduct a quality review of data entered  manually into the
database. Performance Track staff conduct periodic checks of the entered data.

As described, Performance Track is quality controlled to the extent possible, but is not audited in
a formal way.  However, a prerequisite  of Performance Track membership is an environmental
management system (EMS) at the facility, a key element of which is a system of measurement
and monitoring.  Most Performance Track facilities have had independent third-party audits of
their EMSs, which create a basis for confidence hi the facilities' data.

A Quality Management Plan is under development.

Data Quality Reviews: N/A.

Data Limitations: Potential sources of error include miscalculations, faulty data collection,
misreporting, inconsistent reporting, and nonstandard reporting on the part of the facility. Where
facilities submit data outside of the Performance Track On-Line system, Performance Track staff
or contractors must enter data manually into the database. Manually entered data is sometimes
typed incorrectly.

It is clear from submitted reports that some facilities have a tendency to estimate or round data.
Errors are also made in converting  units and  in calculations.   In general, however, EPA is
confident that the externally reported results are a fair representation of members' performance.

Error Estimate: Not calculated.

New/Improved Performance Data or  Systems:   As of spring 2004, all Performance Track
applications  and annual performance reports will be submitted electronically (i.e., through the
Performance Track On-Line system), thus avoiding the new for manual data entry. Additionally,
the program is implementing a new requirement that all members gain third-party assessments of
theur EMS.

References:   Members' applications and annual  performance reports  can be found on the
Performance Track website at http://www.epa.gov/performancetrack/particip/alphabet.htm.
Performance Track On-Line and the Performance  Track Members Database are not generally
accessible. Performance Track staff can grant access to and review of the databases by request.
EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLANS

Environmental Education:  Increase by five percent the non-federal matching dollars spent on
educational projects by state and local organizations relative to the dollars invested by the EPA
Environmental Education Grants.

COORDINATION WITH OTHER AGENCIES

       This  objective spans a broad range of pollution prevention activities  which can yield
reductions in waste generation and energy consumption in both the public and private  sectors.

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For example, the Environmentally Preferable Purchasing initiative, which implements Executive
Orders 12873 and  13101, promotes the use of cleaner products by Federal agencies.  This is
aimed at stimulating demand for the development of such products by industry.

       This effort includes a number of demonstration projects with other Federal Departments
and Agencies, such as the General Services Administration (in particular, working to more
broadly implement green janitorial services in Federal Agencies), the National Park Service (to
use Green Purchasing as a tool to achieve the sustainability goals of the parks), Department of
Defense (use of environmentally preferable construction  materials), and Defense  Logistics
Agency (identification of environmental attributes for products in its purchasing system).  The
program is also working within EPA to "green" its own operations. The program also works with
the National Institute for  Standards and  Technology to develop a life-cycle  based decision
support tool for purchasers.

       Under the Suppliers' Partnership for the Environment program and its umbrella program,
the Green Suppliers' Network, EPA's Pollution Prevention Program is working closely with the
National Institute of Standards and Technology and its Manufacturing Extension Partnership
Program to provide technical assistance to the process of "greening" industry supply chains.  The
EPA is also working with the Department of Energy's Industrial  Technologies Program to
provide energy audits and technical assistance to these supply chains.

       The Agency is required to review environmental impact statements (EIS) and other major
actions impacting the environment and public health proposed by all federal agencies,  and make
recommendations to the proposing federal agency on how to remedy/mitigate those impacts.
Although EPA is required under § 309 of the Clean Air Act (CAA) to review and comment on
proposed federal actions, neither the National Environmental Policy Act  nor § 309 CAA require
a federal agency to modify its proposal  to accommodate  EPA's concerns.   EPA does have
authority under these statutes to  refer major disagreements with other  federal agencies to the
Council on Environmental Quality (CEQ). Accordingly, many of the beneficial environmental
changes or mitigation that EPA recommends must be negotiated with the other federal agency.
The majority of the actions EPA reviews are  proposed by the Forest Service, Department of
Transportation   (including  Federal   Highway   Administration   and   Federal   Aviation
Administration), Army Corps of Engineers, Department of the  Interior (including Bureau of
Land Management, Minerals Management Service and National  Park Service), Department of
Energy (including Federal Regulatory Commission), and Department of Defense.

       EPA will continue to work with the Small Business Administration, as appropriate, on
implementation of SBREFA and other small business issues. The Agency will work with other
federal agencies on a broad range of innovation and environmental improvement opportunities
using the Sector Strategies and Performance Track programs, coordinating our environmental
management programs, and ensuring opportunities to conduct environmental pilot projects with
host States.

STATUTORY AUTHORITIES

Antarctic Science, Tourism, and Conservation Act (ASTCA)
Clean Air Act (CAA) section 309 (42 U.S.C. 7609)
Clean Water Act (33 U.S.C. 1251-1387)

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Economy Act of 1932
Emergency Planning and Community Right-to-Know Act (EPCRA) (42 U.S.C. 11001-11050)
Endangered Species Act (ESA)
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) sections 3, 4, 5, 6, 11, 18, 24, and
   25 (7 U.S.C. 136a, 136a-l, 136c, 136d, 1361, 136p, 136v, and 136w)
National Environmental Policy Act
Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)
Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901-6992k)
Safe Drinking Water Act
Small Business Regulatory Enforcement Fairness Act
Solid Waste Disposal Act as amended by the Hazardous Waste Amendments of 1984
Toxic Substances Control Act
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                          Environmental Protection Agency
           FY 2005 Annual Performance Plan and Congressional Justification

                     Compliance and Environmental Stewardship

OBJECTIVE; Build Tribal Capacity

      Through 2008, assist all federally recognized tribes in assessing the condition of their
environment, help in building their capacity to implement environmental programs where needed
to improve tribal health and environments, and implement programs in Indian country where
needed to address environmental issues.

                                 Resource Summary
                                (Dollars in Thousands)

Build Tribal Capacity
Environmental Program & Management
State and Tribal Assistance Grants
Building and Facilities
Inspector General
Total Workyears
FY2003
Actuals
$70,556.6
$13,882.1
$56,212.5
$87.7
$374.3
99.8
FY2004
Pres. Bud.
$78,759.3
$15,687.4
$62,500.0
$73.6
$498.3
99.5
FY2005
Pres. Bud.
$78,931.1
$15,849.2
$62,500.0
$79.3
$502.6
98.4
FY 2005 Req. v.
FY 2004 Pres Bud
$171.8
$161.8
$0.0
$5.7
$4.3
-1.1
                                  Program Project
                                (Dollars hi Thousands)

Categorical Grant: Tribal General Assistance
Program
Tribal - Capacity Building
Administrative Projects
TOTAL
FY2003
Actuals
$56,212.5
$9,555.8
$4,788.3
$70,556.6
FY 2004
Pres. Bud.
$62,500.0
$10,494.1
$5,765.2
$78,759.3
FY 2005
Pres. Bud.
$62,500.0
$10,641.7
$5,789.4
$78,931.1
FY 2005 Req. v.
FY 2004 Pres Bud
$0.0
$147.6
$24.1
$171.7
FY 2005 REQUEST

Results to be Achieved under this Objective

       Under Federal environmental statutes, the Agency has responsibility for assuring human
health and environmental protection in Indian Country.  EPA has worked to establish the internal
infrastructure and organize its activities in order to meet this responsibility. Since adoption of the
EPA Indian Policy in 1984, EPA has worked with tribes on a government-to-government basis
that affirms the federal trust responsibility that  EPA has with each federally recognized tribal
government. The creation of EPA's American Indian Environmental Office (AIEO) in 1994 took
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responsibility for such efforts and was a further step in ensuring environmental protection in
Indian Country.

       EPA's strategy for achieving this Objective has three major components.  First, work
with tribes to  create an environmental presence for each  federally recognized tribe. Second,
provide the information needed by the tribe to meet EPA and tribal environmental priorities. At
the same tune, ensure EPA has the ability to view and analyze the conditions on Indian lands and
the effects of EPA and tribal actions and programs on the environmental  conditions. Third,
provide the opportunity for implementation  of tribal environmental programs by  tribes, or
directly by EPA, as necessary.

Categorical Grant:  Tribal General Assistance Program

       Placing an Environmental Presence in Indian Country: Under the authority of the Indian
Environmental General Assistance Program (GAP) Act of  1992, EPA provides grants to tribal
governments and intertribal consortia for developing the  capacity to administer multi-media
environmental protection programs.   In FY 2005,  EPA is requesting $62.5 million which will
provide approximately 500 or 90 % of federally recognized tribes and intertribal consortia with
at least one person working in their community to build a strong, sustainable environment for the
future. The vital work performed includes locally assessing the status of a tribe's environmental
condition, utilizing available federal information, building an environmental program tailored to
the tribe's needs,  developing  environmental  education  programs, developing solid  waste
management plans, assisting in the building of tribal environmental capacity, and alerting EPA to
serious  conditions involving immediate public health and  ecological threats. (Note:  $500,000
previously requested for solid waste implementation under Tribal  GAP Grants are  requested
under Goal 3.)

Tribal Capacity Building

       Assessing Conditions and Measuring  Results:   In  the  past, a lack  of comprehensive
environmental data has severely impacted EPA's ability to properly identify risk to human health
and the  environment in Indian Country. Similarly, the tribal environmental presence is unable to
identify risk without access to the proper information. AIEO has been in the forefront of working
with multiple  agencies on a federal interagency Tribal Enterprise Architecture.  The Tribal
Enterprise Architecture includes access to a wide variety of data and information from several
agencies and numerous sources within those agencies. The  components of the Tribal Enterprise
Architecture create a  broad, multiple variant views of  the  environmental conditions  and
programs  in Indian  Country. It also includes several AIEO and jointly developed applications
that perform analysis of information on environmental performance in Indian Country for a wide
variety of specific purposes.

       In  FY 2005, resources will  be  used to continue to  develop and maintain the Tribal
Enterprise Architecture. EPA will continue to construct an information technology infrastructure
that organizes environmental data on a  tribal  basis, enabling a clear, up-to-date picture of
environmental activities in  Indian  Country. We will  continue to take advantage of new
technology to establish direct links with other federal agency data systems (including the U.S.
Geological Service, Bureau of Reclamation, and Indian Health  Service) to further develop this
integrated, comprehensive,  multi-agency  Tribal  Enterprise Architecture as well  as  using

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information from numerous other agencies to conduct analysis.  This interactive system will
allow tribes and EPA headquarters and regional offices to supply management information that
supplements  data  collected by  the  national and  regional federal systems resulting in the
availability of more comprehensive data and information. Together, integrating additional data
systems and creating the ability to supply data will result in the closing of many data  gaps.
Significant for data quality aspects of the Tribal Enterprise Architecture, the Agency continues to
formalize interagency  data  standards and protocols to ensure, information is  collected and
reported  consistently among the federal agencies by working as the co-lead (EPA with the
Department of Interior, Bureau of Indian Affairs) on the Federal Geographic Data Committee
(FGDC) Tribal Data Workgroup. The interagency efforts of the Tribal Enterprise Architecture
will promote  consistency  throughout the federal government in  assessing  environmental
conditions hi Indian Country and are conducted under OMB Circular A-16.

       Implementation of Programs:   The ability to comprehensively and accurately examine
conditions and make assessments will provide a blueprint for planning future activities through
the  development   of  tribal/EPA Environmental  Agreements  (TEAs)   or   similar   tribal
environmental plans to address  and  support  priority environmental  multi-media  concerns in
Indian Country. Vital  to  the  EPA  Indian  Policy  are the principles that the Agency has a
government-to-government relationship  with  tribes and that "EPA  recognizes tribes as the
primary parties for setting standards, making environmental policy  decisions and managing
programs for reservations, consistent with agency standards and regulations." To that end, EPA
"encourage[s]   and  assist[s]  tribes  in assuming  regulatory  and program  management
responsibilities," primarily through the  Treatment in the  Same Manner  as a State (TAS)
processes available under several environmental statutes.

       Also, in accordance  with EPA's longstanding policy, the Agency  is  considering
innovative, additional approaches for how EPA and tribes might work  together to protect public
health and the environment in Indian Country.  As part of that effort, EPA is again proposing
language for inclusion hi the President's budget that would  allow EPA to award cooperative
agreements to federally recognized Indian tribes or qualified intertribal consortia to assist the
Administrator in  implementing federal  environmental programs for  Indian Country.   These
cooperative agreements would be made notwithstanding the Federal Grant and  Cooperative
Agreement Act requirements that Federal agencies use a contract when  the principal purpose of a
transaction is to acquire services for the direct benefit or use of the United States.  Cooperative
agreements, rather than a contract under the  Federal acquisition regulation, are the preferred
funding mechanism, since they better reflect the government-to-government relationship.  These
cooperative agreements would not be  awarded using  funds  designated  for  State financial
assistance agreements.

       The proposed cooperative agreement language would promote tribal participation  when
EPA is directly implementing Federal environmental programs  hi Indian Country or for tribes.
It would also help tribes build the capacity to  achieve TAS status if they wish to do so. While
EPA would retain final decision-making authority and ultimate responsibility for all regulatory
activities where EPA directly implements federal programs, the  proposed language would allow
for varying degrees of tribal involvement hi assisting EPA hi carrying out the federal program
depending upon a tribe's interest and ability hi carrying out specific work.  Some tribes might
perform much of the work for EPA necessary to develop and carry out federal  environmental
programs.   Other tribes might gradually increase their involvement as then- capacity to  assist

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EPA increases over time.   In this way,  the proposed language would improve environmental
protection  while  also building  the capacity  and  expertise of the  tribes  to  run  their  own
environmental programs.
FY 2005 CHANGE FROM FY 2004
EPM
         There are increases for payroll, cost of living and enrichment for existing FTE.
ANNUAL PERFORMANCE GOALS AND MEASURES
Tribal Environmental Baseline/Environmental Priori

In 2005       Assist federally recognized tribes in assessing the condition of their environment, help in building their capacity to implement
             environmental programs where needed to improve tribal health and environments, and implement programs 'in Indian country
             where needed to address environmental issues.

In 2004       Percent of Tribes will have an environmental presence (e.g., one or more persons to assist in building Tribal capacity to develop
             and implement environmental programs.
Performance Measures:

Percent of Tribes with delegated and non-delegated programs
(cumulative).

Percent  of  Tribes with EPA-reviewed  monitoring  and
assessment occurring (cumulative).

Percent of Tribes with EPA-approved multimedia workplans
(cumulative).

Increase  tribes' ability to develop environmental program
capacity of federally recognized tribes that have access to an
environmental presence.

Develop  or integrate EPA and interagency data systems to
facilitate the use  of EPA  Tribal  Enterprise Architecture
information in setting environmental priorities and informing
policy decisions.

Eliminate data gaps for environmental conditions for major
water, land, and air programs as determined through the
availability of information  in the EPA  Tribal  Enterprise
Architecture.

Increase  implementation of  environmental programs  in
Indian country by program delegations,  approvals,  or
primacies issued to tribes and direct implementation activities
by EPA.

Increase the  percent of tribes with environmental monitoring
and  assessment  activities  under  EPA-approved quality
assurance procedures.

Increase  the percent of tribes  w/ multimedia programs
reflecting traditional use of natural resources.
FY 2003
Actuals
FY2004
Pres. Bud.
25%


20%


18%
FY2005
Pres. Bud.
                                 90
                                 159
                Tribes


                Tribes


                Tribes


                % Tribes



                Systems




                % Data Gap




                Programs




                % Tribes



                % Tribes
Baseline:      There are 572 tribal entities that are eligible for GAP program funding.  These entities are the ones for which environmental
             assessments of their lands will be conducted.
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VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY 2005 Performance Measure;

Increase tribes'  ability to develop environmental program capacity by ensuring that 90
percent of federally recognized tribes have access to an environmental presence.

Develop or integrate  15 (cumulative)  EPA  and interagency  software  applications to
facilitate  the use  of  EPA  Tribal Enterprise Architecture  information in  setting
environmental priorities and informing policy decisions.

Eliminate data gaps for environmental conditions for major water, land, and air programs
as determined  through  the  availability of information in the EPA Tribal Enterprise
Architecture.

Increase implementation of environmental programs in Indian Country as determined by
program delegations, or primacies issued to tribes and direct implementation activities by
EPA.
Increase the percent of  tribes with environmental monitoring  and assessment activities
under EPA-approved quality assurance procedures.

Increase the percent of tribes with multimedia programs reflecting traditional use of
natural resources as determined by use of Performance Partnership Grants, EPA/Tribal
Environmental Agreements,  and other innovative EPA agreements that  reflect holistic
program integration.

Performance Database: EPA's American Indian Environmental Office (AIEO) has been in the
forefront of  working with multiple agencies  on a  federal interagency Tribal Enterprise
Architecture under the auspices of OMB Circular A-16 on federal data coordination. The Tribal
Enterprise Architecture includes access to a wide  variety of data  from several agencies and
numerous sources within the agencies. It also includes several AIEO-developed applications to
analyze environmental performance in Indian Country.

Environmental presence on tribal land is the creation of tribal government infrastructure (FTE
and  support)  to develop  program  capacity,   assess   environmental  conditions, establish
environmental priorities,  implement and manage programs that result in environmental
improvements. The GAP Grant Tracking System, which is a component of the Tribal Enterprise
Architecture, can measure environmental presence, based on tribally reported information.
Environmental presence is measured by staffing levels reported; also information is collected on
general capacity building, media program, and cross-media activities.

       The Tribal Information Management System (TIMS),  which is also part of the Tribal
Enterprise Architecture, is a web-based application (httpr/oasintrtpnc.epa.gov) used to access
baseline environmental information on federally recognized Indian Tribes. Public access to this
information via the web cannot be provided until EPA completes its  consultation with the tribes.
TIMS  contains information about the environmental condition of tribal  lands, the nature and

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status of regulated  facilities there,  as well as the nature and extent of tribal  environmental
management program activities. TIMS is not a static system.  It is a real-time system that extracts
information from EPA and external data systems as they are maintained and updated by various
federal, non-federal, and tribal partners.  TIMS is also a vehicle for tribes, federal agencies and
non-federal agencies, to develop partnerships, improve communication, and to establish tribal
environmental priorities in a coordinated, multimedia, and interagency way.

       TIMS generates  tribal profiles,  which are standardized  overviews of  environmental
conditions  and  include tribally supplied background (non-environmental) information.  The
overviews are multi-media and allow  further access to  specific, detailed, publicly available
information.   These profiles, in  conjunction  with  other Tribal  Enterprise Architecture
information: (1) allow EPA to accurately assess the establishment of an environmental presence
in Indian Country, and to report results annually as progress toward performance goals; (2) allow
EPA to measure trends and changes  hi environmental conditions and program results over time;
and, (3) provide information for tribes  and agencies to establish environmental priorities in a
coordinated fashion.

Data Sources:  Current TIMS data  sources are existing federal databases, both from EPA and
other agencies, supplemented by data sources collected from the EPA regions as appropriate. All
data sources are identified and referenced hi the  TIMS application.  In FY 2004 we expect to
formalize interagency data standards and protocols, working with the Federal Geographic Data
Committee (FGDC) formed as  a result of OMB Circular A-16, to ensure information is collected
and reported consistently among the  federal agencies.  In 2005, AIEO will be working as the co-
lead of the Federal Geographic Data Committee (with DOI's Bureau of Indian Affairs) on the
FGDC tribal data workgroup.

Methods, Assumptions and Suitability: The methodology for assessments of environmental
conditions in Indian Country will be standard statistical methods of analysis of variance. Chi
Square and Fisher linear model techniques will be used to  evaluate the statistical significance of
comparisons of tribal conditions, with regard to specific environmental parameters, compared to
the  nation as a whole. The data used to develop  these statistical inferences are in general non-
aggregated point measurements that have  been geographically  indexed.  Sample sizes  are
generally large enough (often in the  hundreds of thousands when evaluating parameters such as
regulated facilities) to provide the necessary degrees of freedom to make statistical inferences in
spite of the large variance in sizes of reservations in Indian Country.  The data are suitable for
year-to-year performance comparisons, and also  for  trend analysis.  Forecasting technologies
have not yet been tested on the data.

QA/QC  Procedures: All the data  used in the  baseline project have quality  assurance and
metadata documentation prepared by the originating agency.  These  will all be  described in a
Quality Management document:  "Manual to TIMS:  Tribal Information Management System."
AIEO will develop data and metadata standards through its work on the Federal Geographic Data
Committee.

Data Quality Reviews: Quality of the external databases will be described but not ranked. Data
correction and improvement is an ongoing part of the baseline assessment project. Tribes will
have the opportunity to review their Tribal Profiles.   Mechanisms for adjusting data will be
supplied.  Errors in the tribal profile are subject to errors in the underlying data.  A special site

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http://db-sen^er.tetratech-ffx.com/'baseline/datacenter which will be used to:   1) allow direct
editing and correction of text of the profiles, 2) submit geographic corrections to maps and
boundary files, or submit files of different kinds of political units for analysis, and 3) submit
corrections to quantitative data points, and 4) display the bibliography used to compile the TIMS
information system.

Data Limitations:  The largest part of the data used by the Tribal Enterprise Architecture has
not been coded to particular tribes by the recording agency.  AIEO uses new geographic data
mining technologies to extract records based on the geographical coordinates of the data points.
For example, if a regulated facility has latitude  and longitude coordinates  that place it in the
boundaries of the Wind River Reservation, then it is assigned to the Arapaho and Shoshone
Tribes of the Wind River Reservation. This technique is extremely powerful, because it "tribally
enables" large numbers of information systems which were previously incapable of identifying
tribes.  This will  be applied to all the EPA databases.  There are limitations, however.  When
database records are not geographically identified with latitude and longitude, the technique does
not work and the  record is lost to the system.  Likewise, the accuracy of the  method depends on
the accuracy of the reservation boundary files. EPA continues to request up-to-date and accurate
coverage of reservation boundaries and land status designations from other agencies.

Error Estimate:  Analysis of variation of the various coverage of reservation boundaries that are
available to EPA indicates deviations of up to 5%. The other source of error comes from records
that are not sufficiently described geographically, to be assigned  to specific tribes. For some
agencies, such  as USGS,  the geographic record is complete, so  there is no  error from these
sources.  It is estimated that 20% of the regulated facilities in EPA regulatory databases are not
geographically described, and thus will not be recognized by the AIEO methodology.

New/Improved Data  or Systems:  The technologies used by the Tribal Enterprise Architecture
are all new and state-of-the-art.  Everything is delivered on the Internet, with security,  and no
need for any special software or data disk on the desktop.  The geographic interface is an ESRI
product called ARC/IMS,  which is a web-based application, with a fully functional GIS system
that is fully scalable.  In FY 2003, the entire  system will be rendered in 3D.  The  Tribal
Enterprise Architecture uses XML protocols to attach to and display information  seamlessly and
in real-time from  cooperating agency data systems without ever having to download the data to
an intermediate server.

References:

Manual to TIMS:  Tribal Information Management System (draft).

http:/A\rww.epa.gov/enviro//html/'bia'tribal em.html
https://oasint.rtpnc.epa.gov/TIMS
http://db-ser\'er.tetratech-ffx.coma/baseline/datacenter
https://oasint.rtpnc.epa.gov/TATS
http ://gap-demo .tetratech-ffx .com
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EFFICIENCY MEASURES/MEASUREMENT DEVELOPMENT PLANS

Tribal General Assistance Program

      To measure aspects  of efficiency, the Agency  will be tracking  the  number  of
environmental programs implemented in Indian Country per million dollars (of Gap Funding).
The  aim is  to increase flexibility of Tribal Governments to use GAP  funding to address
multimedia  environmental  management  issues  in Indian  Country by leveraging  other
environmental funding sources. The specific metrics for this measure will track the number of
EPA grants per Tribe received for Tribes in the lower 48 states. Development of measures is
referenced in the Program Assessment Rating Tool  (PART) summary in the Special Analysis
section.


COORDINATION WITH OTHER AGENCIES

Solid Waste Interagency Workgroup

      EPA  and several federal agencies  including the Bureau of Indian Affairs, the Indian
Health Service, the Federal Aviation Administration, the National Oceanic and Atmospheric
Administration, and the Departments of  Housing  and Urban Development, Department of
Agriculture (Forest Service and Rural Utilities Service), and Department of Defense are working
collaboratively to identify, prioritize and close solid waste dumps in Indian Country. The Group
is focusing on 146 of the highest priority sites from the Indian Health Service's 1997 Report to
Congress, entitled "Open Dumps on Indian Lands," which contains an inventory of 1,162 open
dumps in Indian Country. Additional agencies are likely to participate as the workgroup further
defines its goals and strategy.

Other Examples of Interagency Coordination

      EPA  and the Department of Interior are coordinating an Interagency Tribal Information
Steering  Committee  that includes the   Bureau of  Reclamation,  Department of  Energy,
Department of Housing and Urban Development, U.S. Geological Survey,  Federal Geographic
Data Committee, Bureau of Indian Affairs, Indian Health Service, Department of the Treasury,
and Department of Justice. This Interagency  effort is aimed to coordinate the exchange of
selected sets of environmental, resource,  and  programmatic information pertaining to Indian
Country  among federal agencies  in a "dynamic"  information management  system that is
continuously and automatically updated and refreshed, to be shared equally among partners and
other constituents.

      Under a two-party interagency agreement, EPA works extensively with the Indian Health
Service  to cooperatively  address the drinking water and wastewater infrastructure needs of
Indian tribes. EPA is developing protocols with the  Indian Health  Service  Sanitation Facilities
Construction Program for integration of databases of the two agencies, within the framework of
the Tribal Enterprise Architecture.

      EPA  has organized a Tribal Data Working Group under the Federal Geographic Data
Committee,  and, along with BIA,  is the co-chair of this group. EPA will play a lead role in

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establishing common geographic data and metadata standards for tribal data, and in establishing
protocols  for exchange of information among federal, non-federal  and tribal cooperating
partners.

       EPA is developing protocols with the Bureau of Reclamation, Native American Program,
for integration of databases of the two agencies, within the framework of the Tribal Enterprise
Architecture.  EPA is also developing agreements to share information with the Alaska District,
U.S. Army Corps of Engineers.
STATUTORY AUTHORITIES

Act of 1992 as amended (42 U.S.C. 4368b)
Indian Environmental General Assistance Program (GAP)
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                     Compliance and Environmental Stewardship

OBJECTIVE: Enhance Science and Research

      Through 2008, strengthen the scientific evidence and research supporting environmental
policies and decisions on compliance, pollution prevention, and environmental stewardship.

                                 Resource Summary
                                (Dollars in Thousands)

Enhance Science and Research
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
Buildings and Facilities
Inspector General
Total Workyears
FY2003
Actuals
$72,209.6
$12,336.5
$5,160.1
$53,066.4
$1,337.1
$309.3
293.5
FY2004
Pres. Bud.
$77,181.8
$11,039.9
$8,070.5
$56,273.7
$1,422.4
$375.3
304.4
FY2005
Pres. Bud.
$70,128.7
$10,936.2
$6,879.5
$50,468.8
$1,506.3
$337.9
299.0
FY 2005 Req. v.
FY 2004 Pres Bud
($7,053.1)
($103.7)
($1,191.0)
($5,804.9)
$83.9
($37.4)
-5.3
                                  Program Project
                                (Dollars in Thousands)

Research: Pollution Prevention
Forensics Support
Research: Environmental Technology
Verification (ETV)
Congressionally Mandated Projects
Administrative Projects
TOTAL
FY 2003
Actuals
$31,504.1
$14,845.9
$2,619.0
$9,040.0
$14,200.6
$72,209.6
FY2004
Pres. Bud.
$38,998.6
$18,258.4
$4,011.8
$0.0
$15,913.0
$77,181.8
FY2005
Pres. Bud.
$34,060.5
$16,910.8
$2,996.8
$0.0
$16,160.6
$70,128.7
FY 2005 Req. v.
FY 2004 Pres Bud
($4,938.1)
($1,347.6)
($1,015.0)
$0.0
$247.6
($7,053.1)
FY 2005 REQUEST

Results to be Achieved under this Objective

       EPA has developed and evaluated tools and technologies to monitor, prevent, control,
and cleanup pollution throughout its history. Over the last decade, the Agency has turned its
attention more and more to pollution prevention (P2) when addressing many important human
health and environmental problems. A preventive approach requires: (1) innovative design and
production  techniques  that mmimize or  eliminate environmental   liabilities;  (2) holistic
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      approaches to utilizing air, water,  and land resources; and (3)  fundamental changes in the
      creation of goods and services and their delivery to consumers.

             Research will develop and provide tools  and technologies to improve individual and
      organizational decision making and the capability to reduce or eliminate emissions, effluents,
      and wastes from products and processes, as well as assist small businesses in the development
      and commercialization of innovative environmental  technologies needed  by EPA  Regions,
      program offices,  and state regulatory and compliance programs.  In addition, research  will
      address the findings in the Program Assessment Rating Tool (PART), including focusing more
      on outcomes from these tools and  methodologies.  Research to develop and construct the
      knowledge base necessary to engineer stable environmental management practices at the scale of
      watersheds will also be conducted.  Results will include: providing key information on market
      mechanisms  and incentives  to  support investigations that explore  conditions under which
      financial and other performance incentives will achieve environmental objectives at a lower cost
      or more effectively than traditional  regulatory approaches;  and verifying the performance of
      environmental technologies developed in the private sector so that technology purchasers and
      permit writers have the objective information necessary for decision making.

      Forensics Support

             The Agency's forensic support program provides  specialized support for  the  nation's
      most complex civil and criminal enforcement cases, and provides technical expertise for non-
      routine Agency compliance efforts.  EPA's National Enforcement Investigations Center (NEIC)
      is the only accredited forensics  environmental center in the nation. NEIC's Accreditation
      Standard has been customized to cover the civil, criminal, and special program work conducted
      by the program.

             Efforts to stay at the forefront of environmental enforcement will include the refinement
      of successful multi-media inspection approaches; use of customized laboratory methods to solve
      unusual enforcement case problems;  and further development of a computer forensic expertise
      for use in seizure and recovery of data and in investigative support related to computers and data
      fraud. In response to civil and criminal case needs, the NEIC conducts applied research and
      implementation science, to identify and deploy new capabilities, or to enhance existing methods
      and techniques involving environmental measurement and forensic situations. As part of this
      activity, NEIC  also evaluates the scientific basis and/or technical enforceability of select EPA
      regulations.  The program also provides  technical support for national, regional, state, and tribal
      initiatives and priorities as well as the Agency's integrated compliance assurance program using
      a unique process-based approach.

             To effectively support the Agency's enforcement and compliance activities, NEIC staff
      must maintain state-of-the-art research and analytical skills. They also must have access to the
      tools and technologies needed to perform high-quality work within an increasingly sophisticated
      regulated community.  In FY 2005, the  forensic program will continue to function under more
      stringent International Standards of Operation for environmental data measurements to maintain
      its accreditation. The program also will  continue development of emerging technologies in field
)      and laboratory analytical techniques.
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Research: Pollution Prevention

       The purpose, goals, and associated research directions for EPA's research program on
pollution prevention and new technologies (P2NT) are found in EPA's externally peer-reviewed
Pollution  Prevention Research Strategy18.  The P2NT Multi-Year Plan19 (MYP) sets research
directions within timeframes that translate the strategic directions of the Pollution Prevention
Research  Strategy into specific goals and measures with schedules that enhance accountability.
(R&D Criteria: Relevance & Performance) The P2NT MYP was last peer-reviewed hi December
2001.   Revised versions of both the  research strategy and multi-year plan documents are
currently under development.  In FY 2000, in cooperation with EPA's Office of Research and
Development, the EPA's Office of  Inspector General (OIG)  conducted a pilot-scale program
evaluation of research within this objective20.  The OIG evaluation noted that EPA had made
significant progress in its Government Performance and Results Act (GPRA) efforts.   The
evaluation has been used to further improve EPA's P2NT research program. (Criteria: Quality)

       Pollution Prevention Tools: The authorizing legislation for this research comes from the
Pollution  Prevention Act21 of  1990 that reads hi  part "The EPA should coordinate with
appropriate offices to promote source reduction practices hi other Federal agencies, and generic
research and development on techniques and processes which have broad applicability." One of
the long-term goals of the pollution prevention research program is to develop new advanced
theories and methods of system analysis, along with  decision support tools based on those
methods that can be applied both within and beyond the industrial sector. These tools   intended
to support several EPA program offices and regions, focus on areas such as: (1) chemical process
simulation for waste reduction;  (2) alternative  solvent chemistry and processes; and (3) multi-
media life cycle  assessments for identifying and evaluating environmental burdens associated
with the life cycles of material and services, from cradle to grave.

       Several of these tools have been developed and moved toward commercial availability
through EPA's Cooperative Research and Development Agreements (CRADAs) with the public
and private  sectors. Examples of technology transfer of P2NT tools include agreements with:
Horizon Technologies to develop, market, and distribute the waste reduction (WAR) algorithm;
Chemstations, Inc. to integrate the WAR algorithm into software for modeling different chemical
and petrochemical processes; and Exxon Chemical Company to evaluate lubricants with specific
new refrigerants for replacement of ozone-depleting substances. In FY 2005, P2NT tools work
will include:  complete extension of PARIS II (Program  for  Assisting the Replacement of
Industrial Solvents) solvent replacement software to include  optional user defined chemical
properties; guidance software for the replacement of EDCs hi industrial settings; and low cost
technology that offers economic benefits for controlling chromium emissions.
18 U.S. EPA, Office of Research and Development. Pollution Prevention Research Strategy. (EPA/600/R-98/123). Washington
DC: U.S. Government Printi
ng Office. (1998)
19 U.S. EPA, Office of Research and Development. DRAFT Multi-Year Plan: Pollution Prevention and New Technologies for
Environmental Protection. Washington DC: EPA. Accessed January 14, 2004. Available only on the internet at:
www.epa.gov/osp
20 Office of Inspector General. Program Evaluation Report: Goal 8 Objective 8. (OIG Publication No. 2002-P-000002)
Washington D.C.: Office of Inspector General.
 (2001).
-' Pollution Prevention Act of 1990, Title 42, Chapter 133, Section 13

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       EPA's P2 program was  evaluated  for  the  FY  2005  President's Budget using the
Administration's Program  Assessment Rating Tool  (PART).   The Agency is committed to
addressing the findings in the PART, such as developing long-term outcome-oriented and annual
performance measures, and annual efficiency measures.

       Clean Chemistry and Engineering: Related work in clean chemistry involves the design
of chemicals and alternative chemical syntheses that do  not use toxic feedstock, reagents, or
solvents, and do not produce toxic by-products or co-products.  Clean chemistry research will
contribute to the development of safer  commercial substances  and environmentally friendly
chemical syntheses.  Research hi FY 2005 will continue  to explore benign chemical synthesis,
reformulation of products,  substitution of alternative  chemicals,  bioengineering, and in-process
changes in order to reduce harmful  emissions of volatile organic compounds (VOCs), global
warming compounds, and persistent bioaccumulative toxics (PBTs).

       Sustainable Environmental Systems  (SES) research (formerly Environmental  Systems
Management (ESM)) endeavors to answer the key scientific question: can stable,  sustainable,
long-term management  solutions to complex,  watershed-scale environmental problems be
devised?  The  SES program plan was  the subject of a consultation  by the Environmental
Engineering Committee of the EPA  Science Advisory Board (SAB) in  March 2001.  While a
formal report was not required or issued for such a  consultation, the Committee unanimously
supported the overall direction and goal of the research program.  The central mission of the SES
research program is to construct a six to nine year strategy for managing environmental systems
using economics, water resource and land use planning, physical and ecological theory, law, and
technological methods to reduce risks to human health  and the environment.  Collaborative
research efforts that will continue during FY 2005 include:  cost-effective restoration  of select
ecosystems throughout the Mid-Atlantic Highlands with the Canaan Valley Institute and Region
3; development of a resistance management  framework  for  preventing the  emergence of
resistance in target insect pests with EPA's Office of Pesticide Programs; and development of
sustainable management strategies for National Parks with the U.S. National Park  Service and
Region 8.

       EPA  will  also  continue to  facilitate  the adoption  of innovative  environmental
technologies by the public  and private sectors through the National Environmental  Technology
Competition (NETC).  EPA will  build upon the work started in 2003 and develop competitive
solicitations for additional cost effective technologies. With a focus on sustainability and results,
this program is  expected to show tangible, measurable  results for developing cost-effective,
innovative  solutions to specific environmental  problems identified by local decision makers,
industry, and interest groups.  Working  with partners, the  NETC will  support a "sustainable
design challenge" competition that will incorporate sustainability criteria into existing student
design competitions.

       Small Business Innovation Research Program (SBIR): EPA's Small Business Innovation
Research (SBIR) program,  created by the Small Business  Innovation Development Act of 1982
and funded through a 2.5% set-aside of the Agency's extramural research  and development
budget, makes awards to small, high-tech firms to help develop and move new environmental
tools and technologies from "proof of concept" to commercialization. Proposals are evaluated
and judged on a competitive basis by external peer reviewers. Priorities are established by
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Agency-wide work groups  and undergo  independent peer review  to  ensure SBIR topics
complement EPA's overall  research  program. (Criteria:  Quality  &  Relevance) The  SBIR
program targets research to prevent pollution, reduce water and air pollution, manage solid and
hazardous wastes, and improve environmental monitoring.  The program also addresses special
topics  such as  environmental bioterrorism.   Recognizing that  the expense of carrying out
research and development programs is  often beyond the means of small  businesses,  SBIR
participants receive both financial and technical assistance in developing and commercializing
technologies according to the anticipated market.  The technologies developed under SBIR help
the regulated community meet  environmental requirements in a more cost-effective  manner;
enable industry to reduce the use  of toxic and hazardous materials in production processes,
recovering and  recycling materials for reuse;  and provide new approaches to  designing more
environmentally-friendly products.  Examples of commercialized technologies developed under
EPA's SBIR program can be found in the document Environmental Solutions: Commercializing
SBIR Technologies.22

       In  October of 2003,  EPA submitted a Report to Congress entitled  "One  Stop  Shop:
Coordination of Programs which Foster  Development of Environmental Technologies", which
described  EPA  efforts to consolidate and assist outside organizations seeking  to develop new
technologies. In  an effort to improve the Agency's efforts in this regard, EPA launched the
Environmental Technology Opportunities Portal  (ETOP) web site  on December 31,  2003 to
assist external customers seeking funding opportunities, information, and links to programs that
assist in environmental technology development and commercialization.  The web site can be
found at: www.epa.gov/etop.

       Economics and Decision Sciences: Effective accomplishment of EPA's mission depends
on understanding not only the physical and biological effects of environmental changes, but also
the behavioral causes and consequences of those changes.  The focus of Economics and Decision
Sciences (EDS) research at EPA is to develop a better basis for making decisions, by improving
the understanding of incentives and motivations that  determine individual and corporate
environmental behavior.   Priority  EDS research identified by  EPA economists and outside
experts includes:  ecosystem  and human  health benefits valuation; market-based incentives for
environmental management;  corporate environmental behavior, including compliance behavior
and the effectiveness of government interventions; decision-making processes  that incorporate
non-monetized  benefits; the benefits of environmental  information disclosure; and effective
group  or  community  decision-making.  (Criteria: Relevance)  Valuation of  ecosystems  and
reductions of human health morbidity risk are research priorities for agency rule development
because there are extensive gaps in the information we have about biodiversity, habitat, wildlife,
and different ecosystems as well as disease endpoints associated with environmental causes.
Other  high-priority research focuses  of the  EDS program include better understanding of
corporate  compliance behavior, which  will improve both evaluation of regulation  and the
allocation of implementation resources for enforcement,  compliance, technical assistance, and
financial incentives.  The Environmental Economics Research Strategy is being peer-reviewed
by EPA's Science Advisory Board. A revised and updated version of the EDS multi-year plan is
currently under development.
22 U.S. EPA, Office of Research and Development. Environmental Solutions: Commercializing SBIR Technologies,
(EPA/600/FOO/002), Washington DC: EPA. (2000).

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       EPA's  Science To  Achieve  Results  (STAR)  program  has independently  and  in
partnership with the  National  Science Foundation (NSF) issued grant solicitations in EDS
research.  Research proposals received in response to the solicitations are competitively peer-
reviewed to ensure selection and funding of only the highest quality research. (Criteria: Quality)
Research conducted in FY 2005 will: enhance environmental decision-making by improving the
understanding of how people value the  environment,  focusing  on difficult morbidity and
ecological valuation issues.  Results of this research will enable development of more efficient
and equitable regulations  and policies. Research on market mechanisms and incentives will
support investigations that explore the  conditions under which financial and other performance
incentives will achieve environmental objectives (e.g., pollution reduction, habitat preservation)
at a lower cost or more effectively than traditional regulatory approaches, and will lead to the
design and development of efficient market-based incentives to achieve environmental quality.
Corporate behavior research will also help Federal and state agencies understand how regulated
entities respond  to incentives for environmental  compliance offered through enforcement,
compliance assistance, and information and voluntary mechanisms.

       This research focus is particularly important to regulatory  programs that must conduct
cost-benefit analyses.  EPA's peer-reviewed guidelines23 for preparing economic analyses, which
is EPA's internal guidance for cost-benefit and other economic  analyses supporting rulemaking
and policies, include citations from ten STAR-supported socio-economic research  publications
from peer-reviewed journals.  The results  of this work will help guide policy development at
EPA for the foreseeable future. This and other examples of EDS research results used by state,
local, and Federal government and private enterprises show the success and relevancy of this
work.

Research: Environmental Technology Verification (ETV)

       Technology purchasers and venture capitalists  have historically viewed  technology
vendor-supplied  performance  data with  skepticism.    This  has  limited  the  commercial
development and use of more  innovative environmental  technologies. The  Environmental
Technology Verification (ETV)  program  aims to ensure scientific relevance, fairness, and
consistency in evaluating  environmental  technologies.   ETV is a voluntary, market-based
verification program for commercial-ready technologies, with over 800 stakeholders  representing
diverse interests within the  environmental arena. (Criteria: Relevance) The  goal of ETV is to
verify  the  performance  characteristics   of  private-sector-developed  technologies  so that
purchasers, users, and permit writers have the information they need to make environmentally
sound  decisions.  Working together,  stakeholders, ETV partners, and technology developers
develop testing protocols  and project-specific test plans. Verification tests  are conducted  by
independent third parties, and appropriate quality assurance procedures are incorporated into all
aspects of the  process and all reports  are  subjected  to peer review.  (Criteria:  Quality)
Verification statements of three to five pages, based on performance data  in the reports, are
signed by EPA  and the ETV partner,  and are posted on the ETV Web Site.  EPA and ETV
partners announce verification  activities in relevant publications, and on the ETV web site at
www.epa.gov/etv.
23 U.S. Environmental Protection Agency. Guidelines for Preparing Economic Analyses (EPA/240/ROO/003) Washington DC:
National Center for Environmental Economics. (2000)

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       The program is designed so that, as the value of ETV verification becomes more broadly
appreciated, technology developers will be required to cover an increasing share of the verification
costs.   The program  cost  share  for vendors  in  the program is  projected  to increase  from
approximately 17 percent in FY 2001 to approximately 25 percent of program costs by FY 2005.24
EPA's Science Advisory Board (SAB) has twice reviewed the ETV program since its inception in
1995, and during the second'review the SAB concluded that: "The scarcity of independent and
credible  technology verification  information  is  one  critical barrier  to  the use of  innovative
environmental technologies.  Therefore, the verification testing information that  is provided by the
ETV program fulfills an essential need of the environmental technology marketplace." 25 (Criteria:
Relevance)   While information on technology  commercialization  or purchasing data are  not
available at this time, anecdotal evidence (e.g., growing vendor interest and participation since 1995,
and vendors' willingness to  pay an increasing share of verification costs) indicates the significant
value vendors place in the ETV verification program.  Both data and other anecdotal evidence are
reported in the ETV report to Congress.
FY 2005 CHANGE FROM FY 2004

S&T

•      (-$5,000,000):  This  reduction results in the elimination of EPA's extramural Pollution
       Prevention (P2) research supported through the Science  to Achieve Results (STAR)
       Program.  Resources  will be shifted from the Office of Research and Development to the
       Office of Prevention, Pesticides and Toxics Substances (OPPTS).

•      (-$1,000,000):  This reduction in funding for  the Environmental Technology Verification
       (ETV) program in FY 2005 will result in the closing of one or more of the five verification
       centers.  The ETV centers  currently focus on  drinking water, water security, air pollution
       control,  advanced monitoring, and greenhouse gas technologies.   Technology verifications
       during FY 2005 will  continue, however the scope of technology categories will be narrowed.
       EPA  will  continue  its program  outreach efforts through  the ETV  website,  national
       conferences, and state permit writer training.

•      (-$143,600, -1.4 F.TE):  This represents a redirection of work years from clean chemistry and
       engineering research to Computational Toxicology research.  There will be no significant
       impact to any performance commitments.

•      (+$159,000):  Supports higher costs associated with increased mandatory costs such as
       payroll.

•      There are additional increases for payroll, cost of living,  and enrichment  for new and
       existing FTE.
24 U.S. Environmental Protection Agency. (2002). DRAFT Report to Congress: The Environmental Technology
Verification Program. Washington DC: EPA
 25 USEPA Science Advisory Board. Review of EPA's Environmental Technology Verification Program (EPA Review Draft
report) Washington DC: Science Advisory Board, Environmental Engineering Committee, Technology Evaluation
Subcommittee. (2000)

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Superfund
         (-$383,100, -3.0 FTE):   Technical adjustment  from forensics support to  reflect  actual
         work supporting homeland security under Goal 5, Objective 1.  The adjustment moves
         resources   already   supporting   homeland  security   efforts   at  National  Enforcement
         Investigations Center (NEIC).

         (-$1,123,500):  Technical adjustment from forensics support to support various programs
         under goals 3 and 5 of the Agency's Strategic Plan.
ANNUAL PERFORMANCE GOALS AND MEASURES


Research

Pollution Prevention Research

Long-term Outcome Measure            Measure under development.
Annual Measure                       Measure under development.
Efficiency Measure                    Measure under development.


New Technologies

In 2005        Complete thirty verifications and four testing protocols for a program cumulative total of 280 verifications and 88 testing
              protocols for new environmental technologies so that, by 2009, appropriate and credible performance information about new,
              commercial-ready environmental technology is available that influences users to purchase effective environmental technology in
              the US and abroad.

In 2004        Verify 35 air, water, greenhouse gas, and monitoring technologies so that States, technology purchasers, and the public will have
              highly credible data and performance analyses on which to make technology selection decisions.

In 2003        Developed  10 testing protocols and completed 40 technology verifications for a cumulative Environmental Technology
              Verification (ETV) program total of 230 to. aid industry, states, and consumers in choosing effective technologies to protect the
              public and environment from high risk pollutants.

Performance Measures:                                 FY2003          FY2004         FY2005
                                                    Actuals          Pres. Bud.        Pres. Bud.
Verify  and  provide  information to  States,  technology   40                                                verifications
purchasers,  and  the  public on  40  air,  water, pollution
prevention   and  monitoring  technologies  for  an ETV
programmatic total of 230 verifications.

Complete an additional 10  stakeholder approved and peer-    10                                                protocols
reviewed test protocols  in all  environmental technology
categories under ETV, and provide  them to  international
testing organizations.

Through the ETV program, verify the performance of 35                    35                               verifications
commercial-ready environmental technologies.

Verifications completed                                                                 15               verifications

Testing protocols completed                                                              2                protocols


Baseline:      Actual environmental risk reduction is directly related to  performance and effectiveness of environmental  technologies
              purchased and used.  Private sector technology developers produce almost all the new technologies purchased in the U.S. and
              around the world. Purchasers and permitters of environmental technologies need an independent, objective, high quality source
              of performance information in order to make more informed decisions;  and vendors with innovative, improved, faster and
              cheaper environmental technologies need a reliable source of independent evaluation to be able to penetrate the environmental
              technology  market.  Through  FY  2004, EPA's Environmental Technology Verification (ETV) Program will have verified
              approximately a programmatic total of 265 technologies, as well as making data on their performance available for public use,
              and will have developed 86 protocols. In FY 2005, the ETV Program will complete 15 additional verifications and two testing
              protocols for a cumulative total of 280 verifications and 88 testing protocols since ETV begin in 1995. Beginning in FY 2005,
              regular evaluations by independent and external panels will provide reviews of EPA research programs' relevance, quality, and
              successful performance to date, in accordance with OMB's Investment Criteria  for Research and Development.  These


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          evaluations will include an examination of a program's design to determine the appropriateness of a program's short-,
          intermediate-, and long-term goals and its strategy for attaining these. Reviewers will also qualitatively determine whether EPA
          has been successful in meeting its annual and long-term commitments for research. Recommendations and results from these
          reviews will improve the design and management of EPA research programs and help to measure their progress under the
          Government Performance and Results Act (GPRA).



VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES


FY 2005 Performance Measure:  Verifications completed


Performance Database:  Program output; no internal tracking system


Data Source: N/A


Methods, Assumptions and Suitability: N/A


QA/QC Procedures: N/A


Data Quality Reviews: N/A


Data Limitations: N/A


Error Estimate: N/A


New/Improved Data or Systems: N/A


References: N/A


FY 2005 Performance Measure;  Testing protocols completed


Performance Database:  Program output; no internal tracking system


Data Source: N/A


Methods, Assumptions and Suitability: N/A


QA/QC Procedures: N/A


Data Quality Reviews: N/A


Data Limitations: N/A


Error Estimate: N/A


New/Improved Data or Systems: N/A


References: N/A
                                            V-86

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EFFICIENCY/MEASURES/MEASUREMENT DEVELOPMENT PLANS

       As a measure of efficiency, the Agency will track the time it takes to process pollution
prevention  research  grant  proposals  from  RFA  closure  to  submittal  to  EPA's  Grants
Administration Division. The Agency  will also track the number of peer-reviewed pollution
prevention research journal articles produced per scientific/engineering FTE.
COORDINATION WITH OTHER AGENCIES

       The forensic program works with the state, local and tribal agencies, providing technical
assistance, and on-site investigation and inspection activities for the civil program.  The program
also coordinates with the Department of Justice and other federal, state and local law enforcement
organizations in support of criminal investigations.

       Under the Persistent Bioaccumulative Toxics (PBT) program, EPA has been working with
the U.S. Geological Survey (USGS), the  National  Oceanic and  Atmospheric Administration
(NOAA), and the Centers for Disease Control and Prevention (CDC) to develop a national routine
PBT monitoring strategy.   Through the integration of existing monitoring programs,  this new
strategy will ultimately meet the mutual objectives of EPA and other Federal agencies.

       EPA also partners under a joint solicitation with the Department of Agriculture, Department
of Commerce, Department of Defense, Department of Energy, National Aeronautics and  Space
Administration, National Institute of General Medical Sciences (National  Institutes of Health), and
the National Science Foundation, on metabolic engineering that supports a portion of the Agency's
pollution prevention research program.

       EPA has contributed  projects to  the Department   of  Defense's (DOD's)  Strategic
Environmental Research and Development  Program (SERDP), with particular  emphasis on the
pollution prevention pillar  and the  use of lifecycle  thinking  in  addressing  production and
manufacture of weapons and military hardware.  Preliminary  contacts have been made with the
Department of Agriculture (USDA) regarding lifecycle analysis and a preventive approach for the
development and advancement of biologically- and genetically-altered products. Additionally, EPA
and DOD's U.S. Army Corps of Engineers will continue addressing the costs and benefits associated
with the implementation of new engineering projects and technologies in order to understand and
respond to the economic impacts of environmental innovation.

       EPA co-funds efforts to verify the performance of technologies under a memorandum of
agreement with US Coast Guard (ballast water treatment technology) and the State of Massachusetts
(mercury continuous emission monitors).   EPA also coordinates with other  agencies  to fund
verifications. These include the National Oceanic and Atmospheric Administration (multiparameter
water probes); US Department of Energy (mercury continuous emission monitors); US Department
of Defense (explosives monitors, PCB detection, dust suppressants); US Department of Agriculture
(ambient ammonia monitors); States of Alaska and Pennsylvania (arsenic removal from  drinking
water); States/counties  in Georgia, Kentucky, Michigan (storm water treatment  technology); and
States of New York and Colorado (waste to energy technology).
                                         V-87

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STATUTORY AUTHORITIES

Clean Air Act
Clean Air Act Amendments of 1990
Clean Water Act
Comprehensive Environmental Response, Compensation, and Liability Act sections 106, 107,
   109, and 122 (42 U.S.C. 9606, 9607, 9609, 9622)
Emergency Planning and  Community Right-to-Know Act sections 325 and 326 (42 U.S.C.
   11045,11046)
Federal Insecticide, Fungicide, and Rodenticide Act
Federal Technology Transfer Act
Ocean Dumping Act sections 101, 104B,  105, and 107 (33 U.S.C. 1411, 1414B, 1415, 1417)
Pollution Prevention Act
Pollution Prosecution Act of 1990 (42 U.S.C. section 4321 note)
Residential Lead-Based Paint Hazard Reduction Act of 1992, section 1018 under TSCA section
   11 (42 U.S.C. 4852d, 2610)
Resource Conservation and Recovery Act (RCRA) of 1976, as amended; 42 U.S.C. 6901-6992K)
Safe Drinking Water Act
Small Business Innovation and Development Act
Superfund Amendments Reauthorization Act
Toxic Substances Control Act
                                        V-88

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                         Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

             COMPLIANCE AND ENVIRONMENTAL STEWARDSHIP
Categorical Grant
  Environmental Information, V-43
  Pesticides Enforcement, V-17
  Pollution Prevention, V-43
  Sector Program, V-17
  State and Tribal Performance Fund, V-43
  Toxics Substances Compliance, V-17
  Tribal General Assistance Program, V-73, V-74
Civil Enforcement, V-18, V-19, V-25, V-39
Commission for Environmental Cooperation, V-22, V-40, V-48
Compliance Assistance and Centers, V-18
Compliance Incentives, V-17, V-21, V-22, V-30
Compliance Monitoring, V-4, V-17, V-22, V-35
Congressionally Mandated Projects, V-44, V-82
Criminal Enforcement, V-17, V-19, V-25, V-32, V-38, V-39
Enforcement Training, V-17, V-26, V-39
Environmental Education, V-41, V-44, V-70
Environmental Justice, V-59
Exchange Network, V-8, V-45, V-55
Forensics Support, V-l 1, V-82, V-83
Homeland Security
  Critical Infrastructure Protection, V-18
International Capacity Building, V-18, V-28
Mexican Border, V-20
NEPA Implementation, V-43, V-59
Pollution Prevention Program, V-43, V-45, V-71
RCRA
  Waste Minimization & Recycling, V-44
Regulatory Innovation, V-44, V-55.
Regulatory/Economic-Management and Analysis, V-44
Research
  Environmental Technology Verification (ETV), V-82
  Pollution Prevention, V-82
Science Advisory Board, V-9, V-86, V-87, V-89
Small Business Ombudsman, V-43
Tribal - Capacity Building, V-73

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Enabling/Support Programs

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification
Table of Contents
Enabling/Support Programs
      Office of Air and Radiation	ESP-1
      Office of Solid Waste and Emergency Response	ESP-3
      Office of Enforcement and Compliance Assurance	ESP-5
      Office of Administration and Resources Management	ESP-8
      Office of Environmental Information	ESP-15
      Office of the Chief Financial Officer	ESP-29
      Office of International Activities	ESP-34
      Office of the Administrator	ESP-36
      Office of the General Counsel	ESP-45
      Inspector General	ESP-49
      Subject Index	ESP-56

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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                        ENABLING/SUPPORT PROGRAMS
                                 (Dollars in Thousands)
Office of Air and Radiation
Program Project
Homeland Security: Protection of EPA Personnel and
Infrastructure
FY 2003
Actuals
$0.0
FY 2004
Pres. Bud.
$600.0
FY2005
Pres. Bud.
$600.0
FY 2005 REQUEST

Homeland Security: Protection of EPA Personnel and Infrastructure

      The Agency's security and protection of personnel and infrastructure are critical to EPA's
ability to respond to terrorist incidents.  In FY 2005 the Agency will continue to take steps to
safeguard  staff members, ensure the  continuity of operations, and protect the operational
capability of vital infrastructure assets.
COORDINATION WITH OTHER AGENCIES
N/A
STATUTORY AUTHORITIES

Appropriations Law
Clean Air Act
Computer Security Act
Defense Against Weapons of Mass Destruction Act (Title XTV of Public Law 104-201)
Executive Order 10831 (1970)
Electronic Freedom of Information Act
EPA's Environmental Statutes, and the Federal Grant and Cooperative Agreement Act
Federal  Acquisition Regulations  (FAR), contract law, and EPA's Assistance  Regulations
(40CFR Parts 30, 31,35, 40,45,46,47)Federal Manager's Financial Integrity Act (1982)
Freedom of Information Act
The Government Performance and Results Act (1993)
Government Management Reform Act (1994)
Homeland Security Act of 2002
                                       ESP-1

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National Response Plan
Paperwork Reduction Act
Privacy Act Public Health Security and Bioterrorism Emergency and Response Act of 2002
Public Health Service Act, as amended 42 U.S.C 201 et seq.
Public Law 86-37
Reorganization Plan No. 3 (1970)
Title 5 United States Code
Various Presidential Decision Directives
                                        ESP-2

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Office of Solid Waste and Emergency Response
(Dollars in Thousands)
Program Project
Homeland Security: Protection of EPA Personnel and
Infrastructure
FY 2003
Actuals
$0.0
FY 2004
Pres. Bud.
$600.0
FY2005
Pres. Bud.
$600.0
FY 2005 REQUEST

Homeland Security: Protection of EPA Personnel and Infrastructure

       Presidential Decision Directive 67 directs all Executive branch departments and agencies
to have in  place  a viable Continuity of Operation (COOP)  and Continuity of Government
program. In FY 2005 EPA will concentrate on developing agency-wide minimum requirements
to achieve such a capability. Once established, efforts will focus on helping regions to enhance
their COOP facilities and procure equipment to conduct activities involving national security
materials.   Training  and guidance will be provided to all  COOP essential personnel in
headquarters and the regions.
COORDINATION WITH OTHER AGENCIES
N/A
STATUTORY AUTHORITIES

Appropriations Law
Clinger-Cohen Act
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Computer Security Act
Defense Against Weapons of Mass Destruction Act (Title XIV of Public Law 104-201)
Electronic Freedom of Information Act
Emergency Planning and Right to Know Act
EPA's Environmental Statutes, and the Federal Grant and Cooperative Agreement Act
Executive Order 10831 (1970)
Federal  Acquisition Regulations (FAR), contract  law, and EPA's Assistance Regulations
(40CFR Parts 30, 31, 35,40,45,46,47)
Federal Manager's Financial Integrity Act (1982)
Freedom of Information Act
Government Management Reform Act (1994)
Homeland Security Act of 2002
National Oil and Hazardous Substances Pollution Contingency Plan (NCP)
                                       ESP-3

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National Response Plan
Ocean Dumping Act
Oil Pollution Act
Paperwork Reduction Act
Pollution Prevention Act
Privacy Act
Public Health Security and Bioterrorism Emergency and Response Act of 2002
Public Health Service Act, as amended 42 U.S.C 201 et seq.
Public Law 86-37
Reorganization Plan No. 3 (1970)
Resource Conversation and Recovery Act (EPCRA)
Superfund Amendments and Reauthorization Act
The Government Performance and Results Act (1993)
Title 5 United States Code
Toxic Substances Control Act
Various Presidential Decision Directives
                                        ESP-4

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Office of Enforcement and Compliance Assurance
Program Project
Congressional, Intergovernmental, External Relations
IT / Data Management
FY 2003
Actuals
$1,807.3
$22,244.7
FY2004
Pres. Bud.
$2,253.3
$25,641.1
FY2005
Pres. Bud.
$2,467.2
$26,261.9
FY 2005 REQUEST

       EPA will continue to ensure the security and integrity of its compliance information
systems.  Efforts will be made to upgrade computer systems, databases, and tracking systems to
enable the Agency to respond to  increasing demands for compliance and  environmental
information.  Further, the Agency will significantly improve the exchange of compliance and
permitting information with states and tribes, through modernization of the National Pollutant
Discharge Elimination System (NPDES) database.

       In  FY 2005, the enforcement and compliance assurance programs will support state
agencies' implementation of their own Environmental Management Systems.  Members of the
environmental justice community, and the general public, will have improved access to the data
they  need to  hold  facilities and  local  government  managers  accountable for meeting
environmental goals.

IT/Data Management

       Reliable, comprehensive and up-to-date data systems are key to EPA's ability to identify
non-complying  facilities,  target  compliance  monitoring and  assistance to  environmental
problems posing the highest risk, and measure the effectiveness of its enforcement activities.  In
FY 2005, the enforcement and  compliance assurance  program will continue developing a
consolidated enforcement and compliance information management system, making enforcement
and compliance information available to the public through  the Enforcement and Compliance
History On-line Internet website, and implementing a data quality strategy.

       Integrated Compliance Information System (ICIS). The Agency will continue to develop
the Integrated Compliance Information System (ICIS) which will consolidate enforcement and
compliance information currently contained in the thirteen legacy media-based  systems.  ICIS
will reduce burden and duplication by providing a single source for data entry;  improving public
access to data; supporting the development of risk reduction strategies; and providing states and
Regions with a modernized system to meet  their program management and accountability
responsibilities.

       In  FY 2005, the Agency will continue modernization  of the Permit Compliance System
(PCS) to address serious data gaps, provide easy access to data through the Internet, and support
Agency efforts  to implement an EPA/state network for exchange of environmental data. PCS
serves as  the national  database of  record for the permitting, enforcement, and compliance
program needs of the Clean Water Act (CWA) National Pollutant Discharge Elimination System
                                        ESP-5

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(NPDES). Also, in FY 2005 the Agency will complete the system software development for the
fully modernized PCS system. The software testing, data migration, and system implementation
will be completed for the first release of the Modernized PCS (Version 1) hi December 2005.
Version 1 of the modernized system will be available for direct users of the system to include;
EPA Headquarters, all Regional offices, and nine of the  approximately 18 direct user states.
The  remaining direct user  states will be  implemented by  the  end of  May  2006.   Full
implementation (final system release with all states implemented) of the Modernized PCS is
scheduled to take place by June 2007.

       Enforcement and Compliance  History On-line  (ECHO).   The  Enforcement  and
Compliance Assurance Program will continue to make enforcement and compliance information
available to  the public through the Enforcement and  Compliance History On-line  (ECHO)
Internet website during FY 2005.  The existing website has been unproved in response to the
comments of the public  and industry.  The Sector Facility Indexing Project (SFIP)  is being
discontinued in FY 2004 and will be  subsumed by ECHO.  The compliance and enforcement
program will also continue to make all significant enforcement and compliance guidance, policy
statements, planning documents, and accomplishments electronically accessible to the Regions,
states, industry, and the public through the Internet.

       Data  Quality Strategy.  The  Enforcement and Compliance  Assurance  program is
implementing a Data Quality Strategy focusing on objective verification of core data fields
across  systems and programs,  through random sampling technology  and  resolution of data
quality problems,  as they relate to interpretation of data  definitions.   Each office within the
Office  of Enforcement Compliance Assurance has an approved  Quality  Management Plan
(QMP). In FY 2003 OECA also instituted a requirement for semiannual executive certification of
the overall accuracy of information provided to support the  reporting of Federal enforcement and
compliance activities for GPRA and other significant program measures.
FY 2005 CHANGE FROM FY 2004

EPM

    •  (+$233,500, +0.9 FTE) Technical adjustment made from Goal 5, Objective 1 to reflect
       data quality efforts under the Agency's IT/Data Management program.

    •  There are additional increases  for payroll, cost of living, and enrichment for new and
       existing FTE

    •  Congressional, Intergovernmental, External Relations

       EPA will respond to Congressional requests for information, written and oral testimony,
briefings, and briefing materials. The  Agency will also develop legislative strategies to support
the enforcement and compliance assurance  program; inform the public about environmental
problems and goals; strengthen communications with the public and news media; and, increase
                                        ESP-6

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public awareness and enhance public perceptions of environmental issues.  The Agency will also
continue to work with states and state associations to ensure that state concerns are considered in
Agency enforcement and compliance policies, guidance, regulations, and issues relating to the
National Environmental Performance Partnerships System (NEPPS).

FY 2005 CHANGE FROM FY 2004

EPM

   •   There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.


STATUTORY AUTHORITIES

Clinger-Cohen Act
Computer Security Act
Congressional Review Act
Congressional Review Act
CPRKAofl986
Federal Managers Financial Integrity Act (FMFIA)
Government Paperwork Elimination Act (GPEA)
Government Performance and Results Act (GPRA)
Paperwork Reduction Act Amendment of 1995 (44 U.S.C. 3501-3520)
Plain Language Executive Order
Privacy Act
Regulatory Flexibility Act
Unfunded Mandates Reform Act
                                       ESP-7

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Office of Administration and Resources Management
Program Project
Homeland Security: Protection of EPA Personnel and
Infrastructure
Facilities Infrastructure and Operations
Acquisition Management
Human Resources Management
Financial Assistance Grants / IAG Management
FY2003
Actuals
$39,968.1
$385,000.8
$40,740.9
$46,491.7
$17,792.2
FY2004
Pres. Bud.
$19,288.0
$418,840.5
$41,846.3
$49,191.0
$20,313.4
FY2005
Pres. Bud.
$19,309.3
$439,297.8
$43,659.5
$48,553.1
$23,262.1
FY 2005 REQUEST

Homeland Security: Protection of EPA Personnel and Infrastructure

       The Agency's security and protection of personnel and infrastructure are critical to EPA's
ability to respond to terrorist incidents. In FY 2005 the Agency will continue to take steps to
safeguard staff members, ensure the continuity  of operations,  and protect  the  operational
capability of vital infrastructure assets.

       In FY 2005, the Agency will update its physical security vulnerability assessments at 146
facilities; begin mitigating medium vulnerabilities at our most sensitive facilities; improve the
Agency's personnel security program by expanding background  checks and investigations to
include contractors, grantees,  and  other personnel with access to EPA space; and  enhance
security operations to include increased guard services and improvements to  the Agency's
Occupant Emergency Planning.

       In FY 2005, the Agency plans to redirect resources within its Homeland Security base to
provide funding for two E-Gov initiatives. The first is the procurement of universal, technology-
enhanced smart cards and equipment for identifying and  credentialing appropriate personnel that
will grant access to EPA facilities and sensitive information.  This will increase  facility and data
security through automated features that provide positive identification as well as automatic or
directed expiration. The second initiative is the development and implementation of an interface
with the Office of Personnel Management's E-Clearance initiative to allow timely and efficient
background checks and investigations.

       In addition, this will enhance the Agency's National Security Information and Segmented
Compartment  Information (NSI/SCI) program.  EPA will  develop and disseminate updated
policies and procedures detailing  roles and responsibilities for safeguarding NSI/SCI documents
and  develop  and  implement a  computer based  training course to increase employee and
clearance-holder awareness of NSI/SCI policies and procedures.
                                         ESP-8

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Facilities Infrastructure and Operations

       The Agency manages activities and support services in many centralized administrative
areas such  as  health  and  safety,  environmental compliance,  occupational  health,  medical
monitoring,  fitness/wellness and safety, and environmental management functions at EPA. This
program also provides a full range of ongoing facilities management services including: facilities
maintenance and  operations;   security;  space  planning;  shipping and  receiving; property
management; printing and  reproduction; mail management; and transportation services.  Also
provided is  management of repairs  and improvements and new construction programs at EPA
facilities.

       Within this program/project the Agency's goal is supported through the construction of
new facilities, and the design and establishment of state-of-the-art laboratories. These facilities
provide the  tools essential to research innovative solutions to current and future environmental
problems and enhancing our understanding of environmental risks.  In addition, EPA is highly
engaged in reducing energy use needed to operate these facilities.  In FY 2005, the Agency will
continue to improve operating  efficiency and encourage  the  use of  new and advanced
technologies and energy savings performance contracts.

       Resources in this objective  will also be used to  comply  with Executive Orders  (EO)
131491, Greening the Government through Federal Fleet and Transportation Efficiency and EO
13123 , Greening the Government through Efficient Energy Management.

       EO 13149 requires that by FY 2005, petroleum use be twenty percent lower than that in
1999.  EPA will direct resources towards acquiring alternative fuel vehicles and more  fuel-
efficient passenger cars and light trucks to meet this goal.  EO 13123 requires a twenty percent
reduction of energy consumption (per square foot or per unit production) in laboratory facilities
by  FY 2005.    The  Agency will  attain  this goal through several initiatives including
comprehensive  facility energy audits, sustainable building design in Agency construction and
alteration projects, energy savings performance contracts to achieve energy efficiencies, the use
of off-grid energy equipment,  energy load reduction strategies,  and the  use of Energy Star
products and buildings.
FY 2005 CHANGE FROM FY 2004

MULTIPLE APPROPRIATIONS

    »  (+$10,889,400 EPM, +$2,204,400 SF) Provides additional resources for increases in rent
       costs.

    •   (+$1,490,500 EPM,  +$1,481,400 SF)  Provides additional  resources for increases in
       utilities costs.
1 Information available at http://www.epa.gov/fedsite/eol3149.htm

2 Information available at http://www.epa.gov/fedsite/eo 13123.htm
                                         ESP-9

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    •  (+$5,014,600 EPM, +$2,636,900 SF)  Provides additional resources for increases in
       security costs.

Acquisition Management

       Resources  in this  program/project  support  activities related to the management of
contract/acquisition  management  at  headquarters,  Regions, Research Triangle  Park  and
Cincinnati.   This program/project focuses on  maintaining a high  level of integrity in the
management of EPA's procurement activities, and fostering relationships with state and local
governments to support the implementation of environmental programs.

       In FY 2005, the Agency will improve electronic government capabilities and enhance the
education of its contract workforce.  The Agency will meet the President's Management Agenda
initiative3 on electronic government by:

    •  Web-enabling the Program Office Interface (POI) and Small Purchase/Electronic Data
       Interface (SPEDI), which will allow access to these systems through EPA's Intranet;

    •  Utilizing the central contractor registry, which is the single government-wide database for
       vendor data and part of the Integrated Acquisition Environment (IAE)4;

    •  Submitting contract actions directly, at the time the action is issued, into the Federal
       Procurement Data Base-Next Generation (FPDS-NG), which is another IAE initiative;

    •  Extending the use of electronic signatures;

    •  Developing interfaces with  current  Agency-wide financial  systems  involved in the
       purchasing and paying process; and,

    •  Working  to eliminate  paper-processing  hi  the acquisition  process, and to  manage
       acquisition records electronically.
       To meet the President's goal that 90 percent of all acquisition employees meet mandatory
training requirements by FY 2005, the Agency will improve the qualifications and education of
its contract workforce by providing  appropriate training opportunities and establishing and
enforcing mandatory training requirements.
3 The President's Management Agenda: FY 2002. Washington, DC: U.S. Government Printing Office. Available at
http://www.whitehouse.gov/omb/budget/fV2002/mgmt.pdf

4 Integrated Acquisition Environment available at http:.//www.whitehouse.gov/omb/egov/internal/
acquisition.htm
                                         ESP-10

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FY 2005 CHANGE FROM FY 2004

MULTIPLE APPROPRIATIONS

    •  There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.

Human Resources Management

       Resources in this program/project support activities related to the provision of human
resources management services to the entire Agency.  Specifically, EPA supports functions in
all  aspects  of human  resources  programs,  organizational development,  and  management
activities including  support to Agency-wide and interagency councils and committees and
serving as EPA's liaison on  interagency management improvement initiatives.   The Agency
provides assessment/evaluation/review  of effectiveness of human resource and  workforce
functions, programs and activities; employee development; leadership development; workforce
planning; and succession management.

       EPA has  accomplished many important milestones in implementing its original Strategy
for Human Capital5  and is committed to fully implementing the revised version of the Strategy
that was issued in December 2003.  This Strategy sets EPA on a course so that by July 1, FY
2004,  the Agency  can  achieve  a "Yellow" status  in Human Capital in the President's
Management Agenda.  EPA  will  continue its improvement efforts to  attain and maintain a
"Green" status.

       Specifically,  the Agency will continue to take advantage of the  Workforce Planning
System throughout the entire  organization to identify competency gaps.  A focused effort will
also target the delivery of training in the Workforce Development Strategy6 to help organizations
eliminate their  competency   gaps.    Further,   as  a result of the  OMB Circular  A-76
"Implementation of the Federal Activities Inventory Reform Act of 19987 (Public Law 105-270)
("FAIR Act")" Study, competitive sourcing will also be given consideration.
FY 2005 CHANGE FROM FY 2004

MULTIPLE APPROPRIATIONS

    •   There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE
5 US EPA Investing in OUR People II, EPA's Strategy for Human Capital. Available at
http://www.epa.gov/ocfo/finstatement/2000ar/arOO sec3.pdf

6 Workforce Assessment Project: Executive Summary and Tasks 1 - 4 Final Reports. Available at
http://www.epa.gov/epahrist/workforce/wap.pdf

7 Available at http://www.whitehouse.gov/omb/fedreg/fair2002notice4.html


                                        ESP-11

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Financial Assistance Grants /IAG Management

       Resources in this program/project support activities related to  the  management of
Financial Assistance Grants/IAG and suspension and  debarment at headquarters, Regions,
Research Triangle Park and Cincinnati.  This program/project focuses  on maintaining a high
level of integrity in the management of EPA's assistance agreements, and fostering relationships
with State and Local governments to support the implementation of environmental programs.

       A key component of this program/project is EPA's  management of grants,  which
comprise over half of the Agency's budget, to meet the highest fiduciary standards and produce
measurable environmental results. In FY 2005, additional resources  are needed to strengthen
EPA's ability to carry out its new long-term Grants Management Plan8. The Plan will promote a
consistent, Agency-wide approach to pre-award and post-award grants management.  EPA will
report  on the performance measures in the Plan in the Agency's FY 2005 Annual Report. In
furtherance of the Plan, this investment will assist the Regional Grants Management Offices by
providing: six-fold increase in the required number of Regional on-site reviews;  an on-line
training program for at-risk recipients; and funding for critical indirect cost rate negotiations for
non-profit recipients.  This investment will also address  congressional concerns over EPA's
accountability for effective grants management by supporting  Agency-wide  training  for
Headquarters  and  Regional  managers  and  supervisors  on  their  grants  management
responsibilities.
FY 2005 CHANGE FROM FY 2004

EPM

    •  (+$1,000,000)   This increase will  provide funding to increase  support  for  grants
       management in the regional grants management offices and to provide mandatory, on-
       line grants management training for managers.

STATUTORY AUTHORITY

Annual Appropriations Act
Clinger-Cohen Act
Comprehensive Environmental Response, Compensation and Liability Act
Computer Security Act
Electronic Freedom of Information Act
EPA's Environmental  Statutes, and the Federal Grant and Cooperative Agreement Act
Federal Acquisition  Regulations  (FAR), contract law, and  EPA's  Assistance Regulations
(40CFR Parts 30, 31, 35,40,45, 46,47)
Federal Manager's Financial Integrity Act (1982)
8 US EPA, EPA Grants Management Plan. EPA-216-R-03-001, April 2003. Available at
http ://www.epa. gov/ogd/EO/finalreport.pdf


                                        ESP-12

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Freedom of Information Act
Government Management Reform Act (1994)
Paperwork Reduction Act
Privacy Act
The Government Performance and Results Act (1993)
Title 5 United States Code
ANNUAL PERFORMANCE GOALS AND MEASURES

Energy Consumption Reduction

In 2005      By 2005, EPA will achieve a 20% energy consumption reduction from 1990 in its 21 laboratories which is in line to meet the
           2005 requirement of a 20% reduction from the 1990 base. This includes Green Power purchases.

In 2004      By 2004, EPA will achieve a 16% energy consumption reduction from 1990 in its 21 laboratories which is in line to meet the
           2005 requirement of a 20% reduction from the 1990 base. This includes Green Power purchases.

In 2003      The Agency achieved 15.3% energy consumption reduction from 1990 in its 21 laboratories.

Performance Measures:                         FY2003    FY2004   FY200S
                                         Actuals    Pres.      Pres. Bud.
                                                   Bud.
Cumulative  percentage  reduction  in energy consumption     15.3       16        20     Percent
(from 1990).



Baseline:     In FY 2000, energy consumption of British Thermal Units (BTUs) per square foot is 320,000 BTUs per square foot.



VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES


Performance Measure: Cumulative percentage reduction in energy consumption in EPA's

21 laboratories from the 1990 base.


Performance  Database: The Agency's contractor  receives energy bills  regularly — either

monthly or  quarterly - from  the utility companies.   This  information is compiled in  the

contractor's  database and provided to the Agency quarterly and annually.   The  contractor is

responsible for validating the data.


Data Source: Energy bills from the utility companies, as compiled by the Agency's contractor.


QA/QC Procedures: Agency staff/contractor review utility bills from laboratories.


Data Quality Review: EPA's Sustainable Facilities Practices Branch.


Data Limitations: N/A


New/Improved Data or Systems: N/A


References: N/A
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Data Source: The Office of Human Resources and Organizational Services (OHROS) will assist
Program Offices in determining their demand for future mission-critical skills and competencies,
identifying their gaps, and developing a methodology for filling the gaps.  This information will
be entered by the Program Offices into the Agency's Workforce Planning module in PeoplePlus,
the Agency's integrated human resources/time&labor/payroll system.

QA/QC Procedures:  The information will be verified through collaboration with Program
Managers, e.g., through focus groups.

Data Quality Review: N/A

Data Limitations: Some of the data, like a determination of current competencies and skills,
will be generated by employees themselves.

New/Improved Data or Systems: PeoplePlus is the Agency's new integrated system set to go
live in early October 2003.

References: http://intranet.epa.gov/institute/wdsM.anning,htm
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Office of Environmental Information
Program Project
Homeland Security: Communication and Information
Exchange Network
Information Security
IT / Data Management
FY2003
Actuals
$0.0
$21,282.4
$21,516.2
$86,198.4
FY 2004
Pres. Bud.
$3,820.3
$33,295.3
$13,337.4
$112,124.9
FY2005
Pres. Bud.
$3,820.3
$27,762.2
$4,697.2
$130,019.6
In FY 2005, EPA proposes increased focus on the following five critical areas:

   •   Address critical technology gaps affecting EPA's ability to deliver information access
       consistently  where  interfacing  with external  partners  is an  essential  dimension  of
       operations.

   •   Deliver a high speed network and information technology (IT) infrastructure that has the
       capacity  to  handle  the massive amounts of  data needed to perform  environmental
       analyses, support environmental decision making, and share environmental data with
       partners inside and outside EPA.

   •   Improve  management  and  reduce the  cost  of IT investments to modernize  Agency
       technology   and information infrastructure  through  adoption of  sound  investment
       strategies and architecture planning, consistent with the President's Management Agenda
       (PMA) and e-Gov concepts9.

   •   Implement cyber-security for environmental  information to assess and mitigate highest
       priority risks, address critical homeland security requirements, and ensure reliable, secure
       information access for all EPA personnel, emergency responders (EPA and local), and all
       external partners.

   •   Enhance EPA's Web  site management procedures and processes to keep pace with
       technological advances as well as homeland defense concerns on the disclosure of certain
       information, and the public's demand for access to environmental information.

       EPA's Chief Information Officer (CIO) will continue to pursue a strategy which  supports
a strong Agency architecture program and  investment management process as outlined by the
Federal CIO Council and required by the Clinger-Cohen Act.  Our approach to information will
allow EPA to collect and share data while making key information, technology, and funding
decisions at an enterprise-wide level and strengthening the efficiency and effectiveness  of the
governance structure and operations.
9 Office of Management and Budget. "The President's Management Agenda." Available (or accessible) only though
the Internet: httt>://www.whitehouse.gov/'omb/budget''fv20Q2/mgnit.pdf
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       The vast majority of environmental data are collected by states and tribes, not directly by
EPA. Through a five-year partnership effort, EPA is working with states and tribes to develop
an internet-based Environmental  Information Exchange Network (Exchange Network). The
Exchange Network is the means by which EPA and our partners are migrating from antiquated,
inaccessible, "stove pipe" data systems (or sometimes even paper  systems) to digital, high
quality, integrated environmental information systems.  These new systems, with their "network
portals" allow multiple types of data to be exchanged over the internet between EPA, states,
tribes, the regulated community, and the public.  The Exchange Network was conceived and
designed by EPA and the states to enhance environmental decision making at the Federal, state,
and local level.  It increases the availability of data, ensures better data quality and  accuracy,
maintains security of sensitive data, prevents avoidance  of redundant data, and reduces the
burden on those who provide and those who access data.  It is an effort which supports both
public servants and private citizens' environmental choices.

       In addition to the value inter-governmental partnerships and environmental .information
exchange provide  to  environmental  policy  making,  EPA and others also benefit  from the
economies of scale and efficiencies which improve the quality of services and drive  down the
cost of basic government functions. The Agency's enterprise-wide investment and planning will
result hi unproved services beyond the institutional boundaries of EPA.  The PMA's e-Gov
efforts seek to simplify processes and unify operations to better serve citizens' needs.  EPA will
continue its efforts to  implement this vision, and eliminate redundancies and overlap. Specific
activities include small business compliance, payroll, geospatial information, online rulemaking,
and other enterprise-wide resource functions.

FY 2005 REQUEST

Homeland Security

       Sound decision making is based upon accurate and timely information.  EPA  possesses
unique  capabilities to  collect,  synthesize,  interpret,  manage,  and  disseminate  complex
information  about environmental and human-made contaminants and the condition of the
environment.  Effectively managing and sharing this information within the Agency with its
partners at all levels of government and industry will help the Nation to detect, prepare for, and
respond to terrorist incidents.

       It is the responsibility of OEI to provide timely and accurate environmental information.
Integrated and accurate information about EPA-regulated facilities and areas of environmental
interest is critical  to  support the Department of Homeland  Security and to conduct EPA's
homeland security responsibilities. In the event of an emergency, the Agency's success will
depend  on its ability  to identify and  report on regulated facilities, their location and spatial
coordinates, their inventory of materials, and their  corporate ownership to provide relevant risk
information to the national security community. Through its FY 2005 investments,  EPA will
deliver secure, reliable, and timely data access and communication to first responders, on-scene
coordinators, emergency response teams, and  investigators  wherever  they are located and
regardless of what jurisdiction they operate under.
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       EPA's primary effort  to enhance collection and  sharing of environmental  data  and
information is the development of the  Exchange  Network.  The  Exchange  Network is  a
collaborative effort by EPA, states, and tribes to exchange data among all partnering entities via
the Internet.  The Central Data Exchange (CDX) has been established to handle electronic data
transfers as well as non-electronic submissions such as paper forms and diskettes. Working in
partnership with states and tribes, EPA has identified and set priorities for the information
systems that will be supported by these electronic exchanges; as of early 2003, five such systems
are being supported by the CDX facility and the technical design work is underway  for seven
additional systems.

Exchange Network

       The Exchange Network is a comprehensive and integrated approach that will facilitate
information sharing among EPA and its partners using standardized data formats and definitions,
a web-enabled approach to receiving and distributing information, and improved access to timely
and reliable  environmental information10.  Through the Exchange Network,  environmental
partners quickly and easily share information and EPA will be better able to take advantage of
the wealth of environmental and health data collected by other Federal agencies, states, and local
governments.

       EPA,  the states, and tribes will migrate from the old, inaccessible, "stove pipe" data
systems of the past hi  favor  of new, secure,  high  quality,  integrated air, water, and  waste
information systems.   These  new systems  are  being  designed to include "network portals"
through which data can be exchanged over the internet between EPA, states, tribes, the regulated
community and the public. The Exchange  Network will fundamentally change the way the
Agency, states, and tribes do business  because  it will result hi  the increase of the  quality and
quantity of available environmental information, streamlined data transactions between partners,
and unproved environmental information for decision making at all levels.

       The result  of a five-year partnership between  states and EPA is the creation of the
Exchange Network.  EPA  will continue  work  with  its state  partners under  the State/EPA
Information Management Workgroup (IMWG)  and the Network Steering Board.  The IMWG
has created action teams to jointly develop key information projects that will benefit both states
and EPA.  The action teams consist of EPA, state, and Tribal members. They are structured to
result in consensus solutions to information management issues which affect states, tribes, and
EPA, such as the development and use of environmental data standards, and implementation of
new technologies for collecting and reporting information.

       EPA is measuring  the results  of the CDX  initiative against its  long-term  focus on
improving analytical capacity, adopting  a uniform approach to information  governance,  and
providing excellence in information service delivery.  Currently, much of EPA's environmental
reporting consists of non-electronic reporting instruments, multiple reporting points, less-than-
10 Network Steering Board. "Exchange Network Net" Web site. Washington DC: NSB. Date of Access: December
22,2003. Available only on the Internet at: http://www.exchangenetwork.net


                                         ESP-17

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optimal data timeliness, and data quality issues.  At the end of FY 2005, the Exchange Network,
by way of the CDX, will enable:

   •   fully supported electronic data exchange for major EPA environmental systems, allowing
       for faster receipt, processing, and quality checking of data;
   •   states to exchange data with CDX through state nodes in real time, using new web-based
       data standards that allow for automated data-quality checking; and,
   •   private sector, local, and Tribal governments,  and other regulated entities, including
       laboratories, to choose to use CDX to report environmental data to EPA electronically,
       taking advantage of automated data quality checks and online customer support11.

       All these FY 2005 performance measures will result in the increase of high quality health
and environmental information, the  first of the three objectives  based upon EPA's information
management strategy.

FY 2005 CHANGE FROM FY 2004

MULTIPLE APPROPRIATIONS

   •   (-$4,950,500, +10.0 FTE EPM,  -$582,600 SF) This change reflects the establishment of
       an Enterprise Portal which will  service the data collection and data integration needs of
       the CDX partners from the Exchange Network.

Information Security

       EPA's Information  Security program  protects the confidentiality, availability,  and
integrity of the Agency's information assets.  It establishes a risk-based cyber security program
that creates defenses against cyber attacks on  multiple levels  throughout  EPA's information
systems and IT infrastructure.  This "defense-in-depth" approach includes partnering with other
Federal agencies,  states, and tribes to ensure that security components are coordinated  and
comprehensive and take advantage of potential economies of scale.

       EPA maintains  a  robust information security program  to  protect the Agency's IT
infrastructure and  data.  The program is based on a framework of policies, procedures,  and
standards that are  applicable across the Agency and are consistent with Federal requirements.
Key elements of the program include implementing technical controls to protect the network,
infrastructure, and systems; conducting independent testing to evaluate the effectiveness of the
security  program; conducting  risk assessments  of systems  and infrastructure  to maintain
awareness of evolving threats and vulnerabilities; establishing an incident response capability;
maintaining up-to-date security  and  contingency plans for all Agency major IT applications and
   U.S. Environmental Protection Agency. "Central Data Exchange" Web site. Washington DC: EPA. Date of
Access: December 22,2003. Available only on the Internet at: http://www.epa.gov/cdx.
                                         ESP-18

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general support systems performing annual security awareness training for all employees; and
conducting technical training for employees with significant security responsibility.

       EPA's information security program continuously strengthens the Agency's capacity to
protect the availability,  integrity, and confidentiality of information resources against known
threats. The Agency's continued vigilance against expanding and evolving threats supports its
long-term focus on increasing analytical capacity, improving uniform information governance,
and  providing  excellent information service delivery. The Agency's FY  2005  plans  for
performance  are  integrated into a  long-term program  that identifies priority incremental
improvements that must be demonstrated throughout all EPA's information assets and services.
Performance  measures include assuring  that  progress is  maintained and improved through
implementation and validation of annual enhancements as reported to OMB.

FY 2005 CHANGE FROM FY 2004

MULTIPLE APPROPRIATIONS

   •   (-$9,149,100 and -0.5 FTE EPM, +$508,900 and +0.5 FTE SF) This change reflects the
       establishment of an Enterprise Portal which will service the  data  collection and  data
       integration needs of the CDX partners from the Exchange Network.

IT/Data Management

       EPA is critically dependent on information services to fulfill its mission and provide
environmental and human health protection in partnership with states, tribes, and other Federal
agencies. EPA's ability to conduct program operations and make management decisions requires
stable, secure information services with adequate capacity. Emergency responders in the field
need  secure remote access to EPA information  resources.  Federal,  state, and private sector
scientists need adequate network capacity to exchange data and collaborate  on high priority
projects (e.g. modeling of environmental effects in a crisis situation).

       EPA has moved to performance-based, outsourced services to obtain the best solutions
(value for cost) for the range of program needs. This includes innovative multi-year leasing that
sustains and renews technical services in a least-cost, stable manner as technology changes over
time.  EPA manages these services and ensures  best value for the entire Agency portfolio of
information investments through management planning and control processes that translate
business needs into technology  action.  These governance processes align IT decisions with
mission priorities  and resource commitments, allowing EPA to fulfill multi-year outsourcing and
leasing  commitments,   while  successfully  supporting   statutorily  mandated  inherently
governmental priority functions.

       Through IT/Data Management, EPA promotes analytical approaches that integrate  data
from different sources to provide a more holistic view and understanding of the environment,
thus encouraging  informed environmental and human health decision-making. Insights gained
through environmental  analysis tools will  support a  fuller  understanding of environmental
outcomes and remaining problems and challenges.  EPA is advancing the use of indicators as a
                                        ESP-19

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means of more effective reporting on environment conditions. Building on the work leading to
EPA's "Draft Report on the Environment," EPA continues to identify data gaps and advance the
use of indicators as a means of measuring12.

      IT/Data Management will continue to provide support to local program offices in the
Regions' areas of hardware requirements determination, software programming and applications,
records  management systems, data base services,  local area network activities, intranet web
design,  and desktop  support.  EPA's environmental information efforts require the Agency to
ensure that it is keeping pace with the states in the areas of data collection, management and
utilization. Additionally, this program will continue to focus on information security and the
need for each Region to have an internal IT security capacity. The Regions will implement
Agency information resource management  policies hi areas such  as data and  technology
standards, central data base services, and telecommunications. The Regions will also continue to
work on  the implementation of cost accounting procedures to  capture  hi detail  all  IT
expenditures for EPA offices.  This will enable the Agency to better address OMB's IT reporting
requirements.

      IT/Data Management is designed to provide EPA with methods to manage the quality of
its environmental data collection, generation, and use.  The  primary goal of the EPA Quality
System  is to ensure that its environmental data are  of sufficient quantity and  quality to support
the data's intended use. As part of the Agency's Quality System, policies  and procedures have
been developed to assist individual data collectors, data users, and decision makers in defining
their needs for data and assessing data against these needs, and to provide EPA management with
methods for overseeing the quality-related activities  of their programs.

      In  FY 2005, EPA will measure its efforts to increase the use of environmental indicators
to inform  the public and manage for results against its strategic focus on analytic capacity and
excellent information service delivery.  EPA's FY 2005 planned progress  includes establishing
an  unproved suite of indicators  for use by EPA for more effective strategic planning and
measurement by building on work completed to produce the "Draft Report on the Environment."
FY 2005 CHANGE FROM FY 2004

MULTIPLE APPROPRIATIONS

    •  (+$2,484,800 EPM, +$464,200 SF,  +$632,100 S&T)  Resources transferred from the
       other EPA program offices to OEI hi to centralize the management EPA's website.

    •  (+$14,194,200 and -13.0 FTE EPM, -$55,000 and -0.5 FTE SF) This change reflects the
       establishment of an Enterprise Portal which will service the data collection and data
       integration needs of the CDX partners from the Exchange Network.
12 U.S. Environmental Protection Agency, Office of Environmental Information, Draft Report on the Environment -
2003 (EPA 260-R-02-006), htip:/7www.epa.gQv/mdicators/roe/. Date of Access: January 2, 2004


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ANNUAL PERFORMANCE GOALS AND MEASURES
Information Exchange Network

In 2005        Improve the quality, comparability, and availability of environmental data for sound environmental decision-making through the
               Central Data Exchange (CDX).

In 2004        Improve the quality, comparability, and availability of environmental data for sound environmental decision-making through the
               Central Data Exchange (CDX).

In 2003        Continued to improve data access to ensure that decision makers have access to the environmental data that EPA collects and
               manages to make sound environmental decisions while minimizing the reporting burden on data providers.
Performance Measures:

States using the Central Data Exchange (CDX) to send data
to EPA.

CDX will fully support electronic data exchange
requirements for major EPA environmental systems, enabling
faster receipt, processing, and quality checking of data.

States will be able to exchange data with CDX through state
nodes in real time, using new web-based data standards that
allow for automated data-quality checking.

States, tribes, laboratories, and others will choose to use
CDX to report environmental data electronically to EPA,
taking  advantage of automated data quality checks and on-
line customer support.

Customer help desk calls are resolved in a timely manner.

In preparation for increasing the exchange of information
through CDX, implement four data standards in 13 major
systems and develop four additional standards in 2003.

Number of private sector and local government entities, such
as water authorities, will use CDX to exchange
environmental data with EPA.

CDX offers online data exchange for all major national
systems by the end of FY 2004.

Number of states using CDX as the means by which they
routinely exchange environmental data with two or more
EPA media programs or Regions.
                                           FY2003
                                           Actuals
                                             49
 FY2004
Pres. Bud.
 FY2005
Pres. Bud.
                                                                               12
                                                                               40
                                                                             20,000
                                                                               96
                                                            2000
                                                             13
                                                             46
                                  States
                                                                                           Systems
                                                                                           States
                                                                                           Users
                                                                                           Percent

                                                                                           Data
                                                                                           Standards
                                                                                           Entities
                                   Systems
                                                                                           States
 Baseline:
The Central Data Exchange program began in FY 2001.
 Data Quality

 In 2005

 In 2005

 In 2004

 In 2003
EPA increasingly uses environmental indicators to inform the public and manage for results.

EPA will improve the quality and scope of information available to the public for environmental decision-making.

EPA increasingly uses environmental indicators to inform the public and manage for results.

The public had access to a wide range of Federal, state, and local information about local enviromental conditions and features in
an area of their choice.
 Performance Measures:

 Establish an improved suite of environmental indicators for
 use by EPA's programs and partners in the Agency's strategic
 planning and performance measurement process.

 Responders to the baseline questionnaire on customer
 satisfaction on the EPA Website report overall satisfaction
                                             FY2003
                                             Actuals
    FY2004
   Pres. Bud.
   FY 2005
  Pres. Bud.
      1
                                                                                 60
                                                                                            Report
                                                                                            Percent
                                                           ESP-21

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Performance Measures:                                FY2003       FY2004        FY2005
                                                  Actuals       Pres. Bud.       Pres. Bud.
with their visit to EPA.GOV.

Window-to-My Environment is nationally deployed and        Nationally                                 Deployed
provides citizens across the country with Federal, state, and
local environmental information specific to an area of their
choice.

Establish the baseline for the suite of indicators that are used                      1                       Report
by EPA's programs and partners in the Agency's strategic
planning and performance measurement process.
Baseline:     An effort to develop a State of the Environment report based on environmental indicators was initiated in FY 2002.


Information Security

In 2005      OMB reports that all EPA information systems meet/exceed established standards for security.

In 2004      OMB reports that all EPA information systems meet/exceed established standards for security.

In 2003      OMB reported that all EPA information systems meet/exceed established standards for security.

Performance Measures:                                FY2003      FY2004       FY2005
                                                 Actuals      Pres. Bud.       Pres. Bud.
Percent compliance with criteria used by OMB to assess          75           75            75        Percent
Agency security programs reported annually to OMB under
Federal Information Security Management Act/Govt.
Information Security Reform Act.

Percent of intrusion detection monitoring sensors installed        100                                  Percent
and operational.


Baseline:     hi FY 2002, the Agency started planning an effort to expand and its strengthen information security infrastructure.
Agency-Wide IT Infrastructure

In 2004       Manage Agency-wide information technology assests consistent with the Agency's multi-year strategic information resource
             management plan (Enterprise Architecture) reflecting current Agency mission priorities and resources.

Performance Measures:                                FY2003      FY2004        FY2005
                                                 Actuals      Pres. Bud.       Pres. Bud.
Designated upgrades to technology infrastructure and                         1                      Report
enterprise information tools occur on schedule per plan.


Baseline:      The baseline for this program is zero, as it will just begin in FY 2004.
 VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES
 FY 2005 Performance Measures:
 •        The  Central Data Exchange  (CDX)  will  fully support  electronic data  exchange
         requirements  for  major EPA  environmental systems,  enabling faster  receipt,
         processing, and quality checking of data.
 •       States will be able to  exchange data  with CDX through  state nodes  in real time,
         using  new  web-based  data  standards  that  allow  for  automated  data-quality
         checking.
 •       Private sector, local and tribal governments, and other regulated entities, including
         laboratories, will choose to use CDX to report environmental data electronically to
         EPA, taking advantage  of automated  data quality  checks  and  on-line  customer


                                                  ESP-22

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       support.
•      Customer-help desk calls resolved in a timely fashion.

Performance Database: CDX Customer Registration Subsystem.

Data Source: Data are provided by state, private sector, local, and tribal government CDX users.

Methods, Assumptions, and Suitability: All CDX users must register before they can begin
reporting to the system.  The records of registration provide an up-to-date, accurate count of
users. Users identify themselves with several descriptors.

QA/QC  Procedures: QA/QC have  been  performed in accordance with  a  CDX  Quality
Assurance Plan [Quality Assurance Project Plan for the Interim Central Data Exchange System.
Document number: EP005T7. Sept. 17, 2001] and the CDX Design Document v.3. Appendix K
registration  procedures  [Central  Data  Exchange  Electronic  Reporting Prototype   System
Requirements: Version 3; Document number: EP005S3. December 2000]. Specifically,  data are
reviewed for authenticity and integrity.  There are plans to update these procedures during FY
2004 to incorporate new technology and policy requirements. Automated edit checking  routines
are performed in accordance with program specifications and CDX quality assurance guidance
[Quality Assurance Project Plan for the Interim Central Data Exchange System. Document
number: EP005T7. Sept. 17, 2001].

Data Quality Reviews: CDX successfully completed independent security risk assessment in the
summer 2001.  In addition, routine audits of CDX  data collection procedures and customer
service operations are provided weekly to CDX management and staff for review. Included in
these reports are  performance measures  such  as the number  of CDX new users, number of
submissions to CDX,  number  of help desk calls,  number of calls  resolved,  ranking  of
errors/problems, and actions taken.  These reports are  reviewed and actions discussed at weekly
project meetings.

Data Limitations: The CDX system collects, reports, and tracks performance  measures on data
quality and  customer service. While  its  automated routines are  sufficient to screen systemic
problems/issues,  a more detailed  assessment of  data errors/problems generally requires  a
secondary level of analysis that takes time and human resources.

Error  Estimate:   CDX incorporates a number of features  to reduce errors, such  as pre-
populating data whenever possible, edit checks, etc. The possibility of an error in the number of
states registered for CDX, e.g., double-counting of some sort, is extremely remote (far less than 1
New/Improved Performance Data or Systems: CDX coalesces the registration/submission
requirements of many different state-to-EPA, private sector-to-EPA, and local and tribal
governments-to-EPA data exchanges into a single web-based system. The system allows for a
more consistent and comprehensive management and performance tracking of many different
external customers.  The creation of a centralized registration system, coupled with the use of
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web forms and web-based approaches to submitting the data, invite opportunities to introduce
automated quality assurance procedures for the system and reduce human error.

References: CDX website (www.epa.gov/cdx).

FY 2005 Performance Measure: Establish an improved suite of environmental indicators
for use  by EPA's programs  and  partners in the  Agency's strategic  planning and
performance measurement process.

Performance Database:  Initial collection of indicators compiled during the drafting of EPA's
"Report on the Environment," supplemented by indicators currently used in the Agency's
strategic planning and performance measurement process (e.g., EPA's Strategic Plan, Annual
Performance Plan,  Annual  Performance Report,  Annual Operating Plan,  and National
Environmental  Performance Partnership Agreements), will comprise an Agency baseline of
indicators.

Methods, Assumptions and Suitability: The Office of Environmental Information (OEI), the
Office of Research and Development (ORD), and the Office of the Chief Financial Officer
(OCFO)  will review the  planning  documents and  establish  a baseline  of indicators in
consultation with key Agency steering committees.

QA/QC Procedures: As the baseline is established, protocols also will be developed to ensure
that the data supporting the indicators are accurate and complete.

Data Quality Reviews: To be determined and conducted once a baseline has been established.

Data Limitations: The challenge is to develop suitable indicators with sufficient data of known
quality.

Error Estimate: To be determined.

New/Improved Performance Data or Systems: The baseline indicators and supporting data are
in development.

References:  EPA's "Draft  Report on the Environment"  and  "Technical Support Document"
(EPA  pub. no. 260-R-02-006).  Draft  Report  on the Environment Technical Document
(Publication # EPA 600-R-03-050). Both Dated June 2003

Web site: http://www.epa.gov/indicators/roe/htrnl/roePDF.htm

FY 2005 Performance Measure: Percent compliance with criteria used by OMB to  assess
Agency security programs  reported  annually  to OMB under the Federal Information
Security Management Act (FISMA).

Performance  Database: Automated  Security Self-Evaluation  and  Remediation Tracking
(ASSERT) database.
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Data  Source: Information technology (IT) system owners in Agency Program and Regional
offices.

Methods, Assumptions, and Suitability: Annual IT security assessments are conducted using
the methodology mandated by the Office of Management and Budget (OMB), the National
Institute of Standards, and Technology (NIST) Security Self_Assessment Guide for Information
Technology Systems. ASSERT has automated and web-enabled this methodology.

QA/QC  Procedures:  Automated edit checking routines are performed in  accordance with
ASSERT design specifications  to  ensure answers to questions in ASSERT are consistent.
Independent evaluations are conducted on the assessments by both the Office of Inspector
General consistent with §3545 FISMA and the Chief Information Officer's information security
staff.  The Agency certifies results to OMB in the annual FISMA report.

Data  Quality Reviews: Program offices are required to develop security action plans composed
of tasks  and milestones to address security weakness.  Program offices  self-report progress
toward these  milestones.  EPA's information security staff review these  self-reported data,
conduct independent validation of a sample, and discuss anomalies with the submitting office.

Data  Limitations: Resources constrain the  security staffs ability  to validate all of the self-
reported compliance data submitted by program systems' managers.

Error Estimate. N/A

New/Improved Data or Systems: N/A

References:      Annual       Information      Security      Reports      to      OMB:
http://intranet.epa.gov/ttsecurity/pro.greviews/;      OMB       guidance       memorandum:
http://www.whitehouse.gov/omb/memoranda/2003.httnl:       ASSERT       web       site:
https://cfint.rtpnc.epa.gov/assert/; NIST Special Publication 800-26, Security Self_Assessment
Guide     for      Information      Technology      Systems,      November     2001:
http:/ycsrc.nist.gov/publications/nistpubs/index.html;   and,  Federal   Information   Security
Management Act, PL 107-347: hrtp://csrc.nist.gov/policies/FISMA. final.pdf.
FY 2005 Performance Measures: Responders to the baseline questionnaire on customer
satisfaction on the EPA Website report overall satisfaction with their visit to EPA.GOV.
baseh'ne levels.

Performance Database: Customer Satisfaction Questionnaire

Data Source: Data are provided by customers completing the questionnaire.

Methods, Assumptions, and Suitability: Customers visiting  the EPA's Website are given an
opportunity to provide feedback by completing a short customer satisfaction questionnaire. In an
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effort to maintain the objectivity of the questionnaire results,  EPA has contracted with an
independent group, which specializes in hosting online surveys, to gather and analyze data. No
personal information is collected as a result of completing the survey.

QA/QC Procedures: The EPA Website provides access to information produced by the EPA's
program and Regional offices. Information published on the Website must go through a product
review  conducted  by the  program/Region producing  the  information.  Additionally,  all
information must adhere to Agency Website policies and  guidance. The customer satisfaction
questionnaire database has controls in place to prevent repeated entries.

Data Quality Reviews: An annual EPA Website accounts audit is conducted by The Office of
Environmental Information's (OEI's) Office of Information Analysis and Access and requires
EPA's program offices to review the content and quality of their material and to re-authorize
who can post to their Web area. The customer satisfaction database is reviewed quarterly.

Data Limitations: The customer satisfaction questionnaire is voluntary.

Error Estimate: N/A

New/Improved Data or Systems: The EPA Website was converted to a single look and feel that
provides a more consistent approach to presenting information on the Web. In FY 2004, to help
users access the information more easily, and to provide information in an integrated manner, the
website's search engine will be replaced.
References: EPA Web site (www.epa.gov)
EFFICIENCY MEASURES/MEASURE DEVELOPMENT PLANS

•      EPA plans to track the costs incurred for the Central Data Exchange (CDX) relative to
production system, state node, and CDX user.

•      Regarding information security, the Agency will measure the number of incidents that
occurred from known threats that should have been anticipated relative to the number of
Computer  Emergency  Response  Team (CERT)  advisories  implemented  within  EPA's
infrastructure.
COORDINATION WITH OTHER AGENCIES

       EPA  works with its  state partners under  the  State/EPA Information  Management
Workgroup and the Network Steering Board.  This workgroup has created action teams to jointly
develop key information projects.  Action teams consist of EPA, state, and Tribal members. They
are structured to  result hi consensus solutions to information management issues which affect
states, tribes, and EPA, such as the development and use of environmental data standards, and
implementation of new technologies for collecting and reporting information.
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       EPA also participates in multiple workgroups with other Federal agencies including the
United States Geological Survey (USGS), Federal Geographic Data Committee (FGDC), and
CIO Council. The Agency is actively involved with several agencies in developing government-
wide e-government reforms, and continues to participate with the Office of Homeland Security
and  national security agencies on homeland  security. These multi-agency workgroups are
designed to ensure consistent implementation of standards and technologies  across Federal
agencies in order to support efficient data sharing.

       EPA will continue to  coordinate with key Federal data sharing partners including the
USGS, Bureau of Indian Affairs, and the Fish and Wildlife Service as well as state and local data
sharing partners in  public  access information  initiatives.  With respect to community-based
environmental programs, EPA coordinates with  state, Tribal, and  local agencies,  and with
non-governmental organizations, to design and implement specific projects.

       The nature and degree of EPA's interaction with other entities varies widely, depending
on the nature of the project and the location(s) in which it is implemented.  EPA is working
closely with the FGDC and the USGS to develop and implement the infrastructure for national
spatial data.  EPA is coordinating its program with other state and  Federal organizations,
including the Council for Environmental Quality and the Environmental Council of States, to
insure that the appropriate context is represented for observed environmental and human health
conditions.

       EPA will continue to  coordinate with other Federal agencies on IT infrastructure and
security issues by participating on the Federal CIO Council. For example, EPA (along with the
Department of Labor) recently co-chaired  a Federal government committee on  security.  EPA
will  continue to participate on the CIO  Council committees on security,  capital  planning,
workforce development,  interoperability, and e-Gov, and will engage with other Federal agencies
in ensuring the infrastructure for homeland security.

       EPA is a leader  in many areas, such as E-dockets.  EPA has  a modern  well-supported
system that can host other Agencies' docket systems, thereby reducing their costs to develop or
deploy  such a system.   EPA will also  continue to  coordinate with state agencies  on IT
infrastructure and security issues through state organizations such as the National Association of
State Information Resources Executives. In addition, EPA, along with other Federal agencies, is
involved in the OMB led e-Gov initiatives.  As part of this effort, EPA, OMB, the Department of
Transportation,  and ten other Federal agencies are examining the expansion of EPA's Regulatory
Public Access System,  a consolidated on-line rule-making docket system providing a single
point of access for all Federal rules.  EPA is also coordinating efforts with the National Archives
and  Records Administration  on an e-records  initiative. This  effort  is aimed  at establishing
uniform procedures, requirements, and standards for electronic record keeping of Federal e-Gov
records.
STATUTORY AUTHORITIES
Clean Air Act and amendments
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Clean Water Act and amendments
Clinger-Cohen Act
Comprehensive Environmental Response, Compensation, and Liability Act
Computer Security Act
Electronic Freedom of Information Act
Emergency Planning and Community Right-to-Know
Environmental Research, Development, and Demonstration Act
Federal Advisory Committee Act
Federal Food, Drug and Cosmetic Act
Federal Insecticide, Fungicide, and Rodenticide Act
Food Quality Protection Act
Freedom of Information Act
Government Information Security Reform Action
Government Management Reform Act
Government Performance and Results Act
Paperwork Reduction Act
Privacy Act
Resource Conservation and Recovery Act
Safe Drinking Water Act and amendments
Superfund Amendments and Re-authorization Act
Toxic Substance Control Act
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Office of the Chief Financial Officer
Program Project
Central Planning, Budgeting, and Finance
FY 2003
Actuals
$74,889.4
FY2004
Pres. Bud.
$86,143.4
FY 2005
Pres. Bud.
$86,655.3
       Resources will support activities related to maintaining the highest-quality standards for
environmental leadership and for effective internal management and fiscal responsibility of
Agency resources.   Activities  under this program/project will support  the  management of
integrated planning, budgeting, financial management, performance and accountability processes
and systems to ensure effective stewardship  of resources.  In addition,  this  program/project
supports a full range of national, local  and specialized accounting, financial  and customer
services through the Agency's four Finance Centers.
FY 2005 REQUEST

Central Planning, Budgeting and Finance

       In FY 2005  Agency activities under  the  Central Planning, Budgeting  and Finance
Program/Project will  support   performance  and  results-based decision making and  sound
financial stewardship including the following activities: Strategic Planning, Annual Planning and
Budgeting, Financial Services, Financial Management, Performance Measurement Improvement
and Accountability. Through this program/project the Agency provides executive direction for
the Agency's budget, financial, and resource management functions; develops and manages a
performance and results-based management system; manages the  Agency's strategic planning
process; manages the annual planning and budgeting process; provides financial accounting and
fiscal services  to  the Agency; operates and maintains  the Agency's integrated financial
management system; provides support to the Agency's Superfund cost recovery efforts; prepares
the annual financial statements and performance  reports; and coordinates the planning and
budgeting process for the Agency's working capital fund.

       In addition, EPA's Environmental Finance Program assists states  and localities to meet
then: critical environmental infrastructure needs in a sustainable manner. The program provides
grants to a network of university-based Environmental Finance Centers which in  turn, provide
training, expert advice, education, and analysis to states, local communities and small businesses.
As part  of Agency efforts to  provide the American public with innovative, market-based
programs and services, EPA actively reviews programs as part of its Federal Activities Inventory
Reform (FAIR) Act process.

       In FY 2005, EPA will build on the accomplishment  of "getting  to green" in financial
performance on the President's Management Agenda scorecard.  Specific  Agency activities that
led to this achievement included receiving unqualified audit opinions, meeting Federal systems
requirements, validating EPA's payment practices, strengthening the effectiveness of EPA's
grants  competition policy,  demonstrating how Agency offices use financial and performance
                                        ESP-29

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information to support day-to-day decision making, and correcting all material weaknesses for
the first time in 20 years.

       The Agency will also continue development of innovative approaches to meet Federal
financial management challenges  and continue to improve the delivery  of core financial
management  customer services. EPA's  financial  management  innovations are focused on
providing Agency decision makers  with useful, reliable, and timely cost information associated
with key results-based environmental information.  This is to  be accomplished,  in part, by
upgrading the Agency's electronic information systems to make crucial  data more  easily
available and provide accurate, timely information to  managers across the Agency for use in
making financial and programmatic decisions.

       To  continue the  Agency's  compliance with  government-wide accelerated reporting
requirements  for financial statements, EPA has identified  opportunities  to further automate
financial statement preparation capabilities. In FY 2005,  EPA plans to adopt several best
practices, including the capability to perform more robust analyses, enhance data compilation,
simplify footnote disclosure, reduce control risks, and  support year-end closing within a 3-day
period.

       In FY 2005, EPA's priority is to continue efforts to modernize the Agency's financial
systems and business  processes that are rapidly becoming obsolete by today's standards. The
modernization effort will reduce cost, comply with Congressional direction and new Federal
financial system requirements, and improve EPA's management analysis and decision-making
capability.  The financial systems modernization initiative is fully aligned with the strategies
under the President's Management Agenda, especially those  related to Budget and Performance
Integration, Improved Financial Performance, and Expanded  Electronic Government (e-Gov). In
addition, this work is framed by the Agency's Enterprise Architecture development  efforts, and
is being designed to make maximum use of enabling technologies for e-Gov initiatives, including
e-Grants, e-Procurement, e-Payroll and e-Travel. The  Agency's financial  systems architecture
will  provide the supporting  infrastructure for EPA and enable the organization to achieve  its
environmental goals and mission.

       The Agency will launch a substantial upgrade to our budgeting and planning system and
continue improvements in Agency  financial data warehousing and reporting  capabilities, while
continuing  preparations to implement the new financial management system in FY 2007, and
improving  Agency access to key  cost accounting and performance information.   EPA will
support the administration's  e-Payroll initiative by partnering to become a payroll customer of
USDA's National Finance Center.   In FY 2005, EPA  will also  support a government-wide e-
Travel initiative by preparing  to  join the government-wide travel  management  system.  In
addition, EPA will continue collaborating with other  Chief Financial Officer  Act  agencies to
improve the quality and timeliness of information for the government as a whole and to explore
opportunities to standardize financial business processes across government.

       In FY 2005, EPA plans to continue to support program efforts to develop more outcome-
based  annual  performance goals and measures, develop new  sources of performance data,
improve the quality and usability  of existing data sources  of performance  data, improve the
quality and usability of existing data sources, and develop  tools to set strategic priorities and
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track performance. EPA programs will work with state partners in targeted efforts to improve
performance goals and measures that strengthen results-based management. Potential approaches
include: addressing data gaps to develop more outcome oriented measures and goals, increasing
state use of environmental data and performance information in environmental policy and
management decisions, promoting integration of information on environmental conditions with
other management systems used to make environmental policies and management decisions,
supporting  development of statistical models for linking program outputs and environmental
improvements, and developing best practices and case studies based on current successful EPA
or state environmental management efforts.

      As part of these efforts, EPA will continue to consult with its partners and stakeholders
(states, tribes,  local government, other Federal agencies, environmental associations, industry
groups, the EPA Science Advisory Board) and the Congress and OMB. EPA will work to link
annual plans to long-term goals and objectives of the Agency. Our continued work with state
governments through the Environmental Council of the States (ECOS) and Tribal governments
will ensure collaboration and cooperation in achieving the Agency's short - and long-term goals
and objectives. In the development of the Agency's Annual Plan and Budget, EPA will continue
to significantly involve its regulatory partners (principally states and tribes) in identifying short-
and long-term program priorities.

      EPA will report on the results of its Annual Plan and Budget implementation  in the
Agency's Annual Report, which includes audited annual financial statements and information on
results in  achieving  annual performance goals and measures and progress toward  strategic
objectives.  The Annual Report provides Congress and the public a comprehensive picture of
EPA's programs, financial, and management  performance, including the results  of annual
performance goals and measures described hi the Agency's revised final FY 2004 Annual Plan.

      In addition to assessing the Agency's performance results and progress toward its longer-
term strategic  objectives, the Annual Report  also summarizes the results of EPA's work to
comply  with the Federal Managers'  Financial Integrity Act and the  Inspector General Act
Amendments.   The  Agency continuously  assesses the effectiveness  of EPA  management
controls, vulnerabilities and challenges, and monitors progress on audit closeout.
FY 2005 CHANGE FROM FY 2004 REQUEST

EPM

    »  (+$1,500,QOO)  The increase of $1,500,000 in non-payroll resources  will be used to
       further efforts hi  FY 2005  to modernize major  Agency financial  systems.  The
       modernization  will provide decision-makers throughout the Agency with integrated
       budget cost and performance information and timely and reliable financial information
       and reports to  improve accountability, decision-making and program management. FY
       2005 efforts will focus on significant upgrades to the Agency's budget and planning
       systems, new system integration capabilities and continued progress in  replacing EPA's
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       integrated financial management system scheduled for implementation in FY 2007, and
       further developing desk-top access to key cost accounting and performance information.

SF

    •  (-$1,700,000 SF) These Regional non-payroll resources were redirected to the superfund
       enforcement goal.  These resources will support the full array of financial  management
       support services necessary to pay Superfund bills and recoup cleanup and oversight costs
       for the trust fund.
ANNUAL PERFORMANCE GOALS AND MEASURES


Strengthen EPA's Management

In 2005   Strengthen EPA's financial management services in support of the Agency's mission while addressing the challenges included in the
        President's Management Agenda

In 2004   Strengthen EPA's financial management services in support of the Agency's mission while addressing the challenges included in the
        President's Management Agenda

In 2003   Strengthen EPA's financial management services in support of the Agency's mission while addressing the challenges included in the
        President's Management Agenda

Performance Measures:       FY2003     FY2004     FY2005
                       Enacted     Pres. Bud.    Request
Agency   audited  Financial     111      Financial statement
Statements  are  timely,  and
receive an unqualified opinion.


Baseline:     The Agency's audited FY 2004 Financial Statements will be submitted on time, in accordance with the new accelerated schedule,
           to OMB and receive an unqualified opinion.


VALIDATION AND VERIFICATION OF PERFORMANCE GOALS


Performance Measure: Agency's  audited Financial Statements meet the new  accelerated

schedule and receive an unqualified opinion.
Performance Database: .N/A

Data Source: OMB acknowledgement of receipt of financial statements, OIG audit report.

QA/QC Procedures: OCFO management review, OIG audit

Data Quality Review:  OIG audit. The annual financial audit opinion, rendered by the OIG, is a
gauge of the accuracy and fair presentation of the financial activity and financial balances of the
Agency. The unqualified opinion is rendered by the OIG.

Data Limitations:  N/A

New/Improved Data or Systems:  N/A
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References:  Fiscal Year 2003 EPA Annual Report
COORDINATION WITH OTHER AGENCIES

      EPA will develop and issue guidance for executive agencies to use when purchasing
goods and services  in  response  to Executive Order  13101  to  show  a preference  for
"environmentally preferable" products and services.

      To achieve its mission, OCFO has undertaken specific coordination efforts with Federal
and state agencies and departments through two separate vehicles: 1) the National Academy of
Public  Administration's  Consortium on  Improving  Government  Performance;  2) active
contributions to standing interagency management committees, including the Chief Financial
Officers Council and the Federal Financial Managers' Council. These  groups are focused on
improving resources management and accountability throughout the Federal government. OCFO
also coordinates appropriately with Congress and other Federal agencies, such as Department of
Treasury, Office of Management of Budget, and the General Accounting Office.
STATUTORY AUTHORITY

Annual Appropriations Act
Clinger-Cohen Act
Comprehensive Environmental Response, Compensation and Liability Act
Computer Security Act
E — Government Act of 2002
Electronic Freedom of Information Act
EPA's Environmental Statutes, and the Federal Grant and Cooperative Agreement Act
Federal Activities Inventory Reform Act (FAIR)
Federal  Acquisition Regulations  (FAR), contract law, and EPA's  Assistance Regulations
(40CFR Parts 30, 31, 35,40,45, 46,47)
Federal Manager's Financial Integrity Act (1982)
Freedom of Information Act
Government Management Reform Act (1994)
Improper Payments Information Act
Inspector General Act of 1978 and  Amendments of 1988
Paperwork Reduction Act
Privacy Act
The Chief Financial Officers Act (1990)
The Government Performance and  Results Act (1993)
The Prompt Payment Act (1982)
Title 5 United States Code
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Office of International Activities
Program Project
Homeland Security: Protection of EPA Personnel and
Infrastructure
FY2003
Actuals
$0.0
FY2004
Pres. Bud.
$0.0
FY 2005
Pres. Bud.
$35.0
FY 2005 REQUEST

Homeland Security: Protection of EPA Personnel and Infrastructure

       To address the critical need of providing secure  and safe overseas facilities, the
Department of State and OMB has developed a cost sharing initiative to meet this objective.  The
construction program will be funded in part through a Capitol Security Cost Sharing program
managed by the Department of State. Under this program, all agencies with an overseas presence
in U.S. diplomatic  facilities will pay a proportionate share for accelerated construction of new
embassies and consulate facilities. EPA provides personnel overseas to support the work of our
Mexico program and the Organization of Economic Cooperation and Development. In addition,
EPA provides key technical assistance to developing countries and works hi partnerships with
developed countries on global environmental issues of mutual concern in furtherance of EPA's
mission.
COORDINATION WITH OTHER AGENCIES

       EPA's environmental mandate and expertise make it uniquely qualified to represent the
nation's environmental interests abroad. While the Department of State (DOS) is responsible for
the conduct of overall U.S. foreign policy, implementation of particular programs, projects, and
agreements is often the responsibility of other agencies with specific technical expertise and
resources.
STATUTORY AUTHORITIES

Appropriations Law
Clean Air Act
Clean Water Act
Clinger-Cohen Act
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Computer Security Act
Defense Against Weapons of Mass Destruction Act (Title XIV of Public Law 104-201)
Electronic Freedom of Information Act
Emergency Planning and Right to Know Act
EPA's Environmental Statutes, and the Federal Grant and Cooperative Agreement Act
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Executive Order 10831 (1970)
Federal  Acquisition Regulations (FAR),  contract law,  and EPA's Assistance Regulations
(40CFR Parts 30, 31, 35,40, 45, 46,47)
Federal Food, Drug and Cosmetic Act
Federal Insecticide, Fungicide and Rodenticide Act
Federal Manager's Financial Integrity Act (1982)
Food Quality Protection Act
Freedom of Information Act
Government Management Reform Act (1994)
Homeland Security Act of 2002
National Oil and Hazardous Substances Pollution Contingency Plan (NCP)
National Response Plan
Ocean Dumping Act
Oil Pollution Act
Paperwork Reduction Act
Pollution Prevention Act
Privacy Act
Public Health Security and Bioterrorism Emergency and Response Act of 2002
Public Health Service Act, as amended 42 U.S.C 201 et seq.
Public Law 86-37
Reorganization Plan No. 3 (1970)
Resource Conversation and Recovery Act (EPCRA)
Safe Drinking Water Act
Superfund Amendments and Reauthorization Act
The Government Performance and Results Act (1993)
Title 5 United States Code
Toxic Substances Control Act
Various Presidential Decision Directives
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Office of the Administrator
Program Project
Homeland Security: Communication and Information
Congressional, Intergovernmental, External Relations
Administrative Law
Civil Rights / Title VI Compliance
Regional Science and Technology
Science Advisory Board
Small Minority Business Assistance
FY2003
Actuals
$874.0
$52,341.0
$4,464.4
$11,770.7
$2,840.1
$3,748.7
$2,105.8
FY 2004
Pres. Bud.
$0.0
$45,198.9
$4,705.1
$12,113.8
$3,609.2
$4,409.0
$2,214.5
FY2005
Pres. Bud.
$500.0
$46,082.8
$4,929.3
$12,414.2
$3,626.2
$4,757.1
$2,282.0
FY 2005 REQUEST

       The Office of the Administrator (AO) consists of the Immediate Office, which provides
overall supervision to the Agency, three Associate Administrators and their offices, as well as ten
staff offices.  In addition to these 14  individual offices at Headquarters, this request includes
resources for the ten Regional Administrators and their staffs, as well as Regional functions that
are counterparts to certain functions found within the Office of the Administrator (for example,
congressional liaison and public affairs).

Administrative Law

       The  Environmental  Appeals  Board (EAB)  will issue  final  Agency decisions  in
environmental adjudications on appeal to the Board13.  These decisions are  the end point in the
Agency's administrative enforcement and permitting programs. The right of affected persons to
appeal these decisions  within the Agency is conferred by various statutes14,  regulations and
constitutional due process  rights.   The  Administrative Law Judges  (ALJs)  will preside  in
hearings and issue decisions in cases initiated by EPA's  enforcement program against those
accused of environmental  violations  under various  environmental statutes.  The ALJs have
increased their use of alternative dispute resolution techniques to facilitate the settlement of cases
13 The full text of all formal EAB opinions may be accessed electronically at the EAB's website
(http://www.epa.gov/eab) and by subscribers to the Lexis and Westlaw computerized legal research firms. The
opinions are also published in a series of bound volumes titled Environmental Administrative Decisions (E.A.D.),
which may be purchased from the U.S. Government Printing Office, and which may be read at several hundred
public and law libraries that are designated as Federal Depository Libraries. The opinions are also commercially
available in the EPA Administrative Law Reporter, EPA Shadow Law ™ and ELI Environmental Law Reporter.

14 OALJ does not publish its decisions in bound printed book form. Copies of these decisions are maintained in
printed form in the Office of the Administrative Law Judges in Washington, D.C., and in the case file for the case
they pertain  to in the Regional Docket Clerk's Office and Headquarters Docket Clerk's Offices, until archived. The
best and simplest way for the public to search and access these decisions is via EPA's free website
(http://www.epa.gov/oalj) or through computerized legal research firms like Lexis and Westlaw, for which you must
pay for access.
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and, thereby, avoided more costly litigation. The EAB and ALJs recently acquired access to
videoconferencing technology, which is being used to reduce expenses for parties involved hi the
administrative litigation process.

FY 2005 CHANGE FROM FY 2004

EPM

    •   There are  additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.

Civil Rights/Title  VI Compliance

       In 2005, policy direction and guidance will be provided within the Agency  on equal
employment opportunity, civil  rights and diversity issues.  The Agency will continue to work
diligently to process all Title VII internal employment discrimination complaints.  Appropriate
training will be provided to Office of Civil Rights (OCR) staff to conduct Title VII counseling
and investigations.   OCR  will continue to administer  and  monitor  the  implementation  of
affirmative employment programs.  OCR will manage special emphasis programs designed to
improve the  representation,  utilization,  and retention of minorities, women, older  workers,
persons  with  disabilities and persons  with differing sexual orientations in  the Agency's
workforce.

       In addition, external compliance, including Title VI of the Civil Rights Act of 1964, will
prohibit discrimination in programs and activities that receive financial assistance from EPA.
OCR will also issue Title VI guidance on limited English proficiency  and develop a Title VI
compliance  review program.   Finally,  OCR  provides  expert  advice and consultation  to
supervisors and managers of EPA, and technical assistance to EPA employees and applicants for
employment on matters related to the Americans with Disabilities Act; the Rehabilitation Act of
1973, as amended; the Civil Rights Act of  1964, as  amended; section 188 of the Workforce
Investment Act of  1998; and  other applicable  civil  rights laws,  with particular attention to
providing  assistance to  managers,  employees,  and  applicants  in  obtaining  reasonable
accommodations for persons with disabilities.

FY 2005 CHANGE FROM FY 2004

EPM

    •  There are  additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.
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Congressional, Intergovernmental and External Relations

       The  Office  of Congressional  and Intergovernmental Relations (OCIR) responds to
congressional  requests for information,  writes  and/or reviews  written and oral  testimony,
briefings,  and briefing materials.  It ensures that Congress and  EPA's managers receive the
information they need to make policy and program decisions on environmental and public health
issues. In addition to working with Congress, OCIR works closely with the Agency's program
offices to keep them informed of current activities that  affect their particular subject areas.
OCIR develops legislative strategies to support the Agency's mission and policy positions and
coordinates  Agency appearances before congressional committees, as well  as responses to
congressional transcripts and written correspondence.  In addition to these activities, OCIR also
manages  EPA's OMB/interagency  clearance  of Administration positions,  congressional
testimony and other legislative materials.

       OCIR is the Agency's lead on issues relating to the National Environmental Performance
Partnerships System. "Performance Partnerships" is a joint effort with the states to advance joint
planning and priority setting hi the oversight of state programs, and is a long-term effort focused
on improving the relationship between EPA and the states.  OCIR also serves as the Agency's
primary liaison with state and local government environmental agencies.  In that capacity, the
office provides  regular and  timely communications  for both  the Agency's leadership and
members of Congress, ensuring their ability to address priority issues and respond to questions
arising from elected officials  in state and local governments. OCIR also works with states and
state associations to ensure that state concerns are considered in the development of EPA's rules,
policies,  guidance  and  annual budget. OCIR supports the Local Government Advisory
Committee and its Small Community Advisory Subcommittee.  These committees, formed under
the provisions of the Federal Advisory Committee Act,  provide both the Agency and local
governments with a direct forum for addressing issues and exchanging information regarding
local governments' role in managing environmental programs15.

       Americans request environmental protections  that preserve  and protect  America's
environment, in an environmental protection  framework that is based on partnerships with state
and Tribal governments.  They are challenging their leaders to adopt tough but achievable goals
for the environment (cleaner air, purer water, and healthy  communities) and to offer people and
institutions the flexibility to find cost-effective ways to achieve those  goals.  The Immediate
Office of the Administrator will provide the vision and leadership needed to  enable EPA to meet
its commitments to protect public health and the environment in 2005 and beyond. The Regional
Administrators and their staffs will provide leadership in their  respective Regions and the states
they service. They will work with the states and negotiate performance partnerships with the
states to agree on environmental outcomes the states will  achieve with resources received from
EPA.

       The  Office  of Executive Services will provide the Office of the  Administrator with
management infrastructure  services,  including  personnel, administrative, budget, planning,
15 Available only on the Internet at http://www.epa.gov/ocir/nepps/index.htm


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integrity, ethics, computer support, information management security, and financial management
services. The office will assist AO's managers and supervisors in hiring a qualified and diverse
staff in accordance with the Agency's affirmative action and human  resource management
programs  and principles.  This  office will  also provide the expertise,  reports,  financial  and
program analyses, and related information that managers need to make decisions and understand
the resource implications of their management decisions, and  to ensure that the  Office of the
Administrator operates within its authorized funding  levels.   Automated data processing  and
information resource management support will also be  provided to  meet the  increasing
information resource needs of the Office of the Administrator, as well as development  and
implementation of information management security policies needed to protect electronic data.

       The Office of the Executive Secretariat logs, assigns, and tracks correspondence received
by  the  Administrator  and Deputy Administrator  to help ensure that citizens'  comments,
questions, ideas, and concerns are directed to the appropriate program and/or Regional offices
for informed response, for inclusion in official public comment files, and/or for other necessary
action. This office also ensures the quality of executive responses.

       The  integrity of one of the  Agency's primary  stakeholder engagement  and public
participation processes—formally chartered  Federal  Advisory Committees—will be assured
through the oversight, training, and policy functions of the Office of Cooperative Environmental
Management  (OCEM).  OCEM  has  Agency-wide  responsibility  for  Federal   Advisory
Committees16  and thus, will ensure compliance with  applicable laws and regulations; provide
uniform guidance; collect and share best practices; re-engineer processes; and train the Agency's
designated federal officials to increase the efficiency and minimize the vulnerability of Federal
Advisory Committees.

       OCEM will also provide direct support to four  Federal Advisory Committees that advise
the  Administrator,  the President,  and  Congress.  The   National  Advisory  Council  for
Environmental  Policy  and Technology provides the Administrator and the Agency  with
stakeholder advice on a broad range  of environmental policy and technology issues that  will
improve the quality of EPA's environmental decision  making.  The statutorily mandated Good
Neighbor Environmental Board17  will provide the President and Congress with advice  and
recommendations on environmental and infrastructure issues along the U.S. border with Mexico.
The National and  Governmental Advisory Committees,  mandated  by  the  North American
Agreement on Environmental Cooperation18 and by Executive Order19,  provide advice to the
Administrator and  the  U.S.  Government that will help  the U.S. achieve  its  objectives hi
16 On February 18, 1998, the EPA Deputy Administrator designated OCEM as the national program manager for
EPA's committee management program

17 The Good Neighbor Environmental Board is authorized under Section 6 of the Enterprise for the Americas Act of
1992, 7 U.S.C. section 5404.

18 Articles 17 and 18 of the North American Agreement on Environmental Cooperation

19 Executive Order No. 12915
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implementing the environmental side accords to the North American Free Trade Agreement with
Canada and Mexico.

       The Office of Public Affairs  (OPA) uses diverse media resources to aid the public's
understanding of science to increase awareness and perception of environmental issues and their
technological and  scientific solutions.   The office informs the public about environmental
problems  and goals,  and strengthens  the integration of policy/regulatory decisions  in  its
communications messages. OP A, and its Regional and program office counterparts, manages
development and approval of communications products and publishes them in print and  on
EPA's web site in coordination with the Office of Environmental Information.  OPA manages
the Agency website's homepage, press release database, the Administrator's speeches database;
and the newsroom Web page.  The office conducts oversight of web and printed publications and
directs audit reports to appropriate offices.  OPA works with the Administrator to keep Agency
staff and the public informed about major policy decisions, initiatives, events, and key personnel
appointments.   The office is also responsible for the  electronic  distribution of mass mail
information for the Administrator and his or her designees.

FY 2005 CHANGE FROM FY 2004
EPM
       There are additional increases for payroll, cost of living,  and enrichment for new and
       existing FTE.

       (-$500,000) These resources will be redirected within the Office of the Administrator to
       support EPA's new Office of Homeland Security.
Regional Science and Technology

       In addition to its liaison responsibilities, the Office Congressional and Intergovernmental
Relations (OCIR) also manages the Regional Science and Technology (RS&T) account on behalf
of the Regional laboratories. OCIR is responsible for replacing or supplying the sophisticated
equipment the laboratories need to effectively undertake their responsibilities.  The Regional
laboratories  are critical in supporting all of the Agency's programs and goals by supplying
specialized expertise  and high quality results  hi  sampling  procedures, data documentation,
analytical  methodology,  protocol and/or statutory guidelines20. In FY 2005,  the  laboratory
equipment will support Regional implementation of the Agency's statutory mandates through:
field  operations  for environmental  sampling and  monitoring;  Regional  laboratories for
environmental analytical testing; quality assurance oversight and data management support; and,
laboratory accreditation.
20. U.S. EPA, Office of Regional Operations, Science to the Power of 10; Regional Laboratory System Annual
Report FY 2002
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       The RS&T program provides in-house scientific expertise and technical capabilities in
the generation of data for Agency decisions, not only hi the normal course of activities, but also
hi response to emergency and catastrophic events of concern to homeland security, such as those
that occurred on September 11,  2001.  Following the September 11 attacks, RS&T divisions
supported the development of critical and timely environmental data and data review activities.
This expertise is also utilized m oversight of state and private laboratory certification for the
National Drinking Water Program.  The scientific expertise required to design and execute these
analyses is used to provide advice, expert testimony, and critical environmental  analyses hi
Regional and national  program  decisions, and civil  and criminal litigation and enforcement
cases.
FY 2005 CHANGE FROM FY 2004

EPM

    •  There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.


Science Advisory Board

       For many years, the goal of EPA's Science Advisory Board (SAB) has been to make a
positive difference in the development and use of science at EPA. Established by Congress hi
1978, the SAB utilizes non-government technical experts who serve as its 87 members and more
than 400 consultants.  They come from a broad range of disciplines — physics,  chemistry,
biology,  mathematics, engineering, ecology, economics, medicine, and other fields.  Operating
under the Federal Advisory Committee Act (FACA), the SAB empanels technically  strong and
diverse groups to  ensure a balanced range of technical views  from academia, communities,
states, independent research institutions, and industry.

       EPA's SAB plans to enhance its mission by advising the Agency to focus on priority
environmental issues that  greatly  impact overall environmental protection,  address  novel
problems or principles, influence long-term technological development, deal with problems that
transcend Agency  boundaries,  strengthen  the   Agency's basic  capabilities,  and/or  serve
Congressional and other leadership interests. The Board also recognizes that economic and other
social science issues are particularly important, given that EPA has generated new information-
based, voluntary approaches to environmental protection — such as working with stakeholders hi
communities and sectors to achieve environmental goals that voluntarily go beyond regulatory
activities.

       Additionally,  the SAB supports the President's Management Agenda on Competitive
Sourcing and has evaluated  staff operations and identified several functions which were
previously performed by its administrative and technical staff that are now being performed by
the private  sector.  The direct conversion of four work years to contractor support was effective
hi FY 2003, and continues.   The  EPA SAB's attention to competitive sourcing has lead  to a
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management review of overall staff operations.  The Board is in the process of developing an
effective human capital strategy, a government-wide initiative that will better identify its human
capital needs and how it will acquire, develop, and deploy its human capital to better align its
organizational objectives with EPA's mission and goals.
FY 2005 CHANGE FROM FY 2004

EPM

    •  There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.


Small Minority Business Assistance

       EPA's Office  of Small and Disadvantaged Business  Utilization (OSDBU) and its
Regional counterparts provide technical assistance to headquarters and Regional program office
personnel to ensure that small, minority  and women-owned businesses receive a fair share of
EPA's procurement dollars. This fair share may be received either directly or indirectly through
EPA contracts, grants, cooperative agreements, or interagency agreements.  Pursuant to P.L.102-
389, the Agency has a national goal of 8% utilization of minority and women-owned businesses.
In addition, pursuant to P.L. 101-549, the Agency has a national goal of 10% utilization of these
firms for research conducted under the Clean Air Act Amendments of 1990.
       OSDBU and its Regional counterparts also assist  the  Agency in meeting its direct
procurement goals for  small,  small disadvantaged, Historically  Underutilized Business Zones,
Women-Owned, and Service Disabled Veteran-Owned Small Businesses. These efforts enhance
the ability of small, minority and women-owned  businesses to participate in the Agency's
objective to protect human health and the environment.  As a  result  of the Supreme Court's
decision hi Adarand v. Pena, 115 S. Ct. 2097 (1995), EPA is in  the process of proposing a rule
for the participation of Disadvantaged Business Enterprises in procurements funded through
assistance agreements. In 2005, the Agency plans to draft the final rule and begin implementing
the certification requirements of the final rule.

FY 2005 CHANGE FROM FY 2004

EPM

    •  There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.

Homeland Security

       EPA's Office of Homeland Security (OHS) is responsible for ensuring implementation of
the  Agency's  homeland  security  responsibilities; coordinating  homeland  security policy
development across the Agency;  serving as primary  liaison with  senior  officials in the
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Department of Homeland Security and other Federal agencies with responsibilities for homeland
security;  providing  a more  centralized  and efficient  system for receiving and  evaluating
important classified  communications from multiple sources; and serving as primary liaison on
matters relating to homeland security within EPA.

      OHS will collaborate with EPA headquarters program and regional offices to develop and
maintain  a system to monitor progress on homeland security activities.  This system will help
EPA program and regional offices document then- range of homeland security responsibilities
and will facilitate the sharing of information across the Agency.
FY 2005 Change from FY 2004 Request

EPM

   .•  (+$500,000)  These  resources  will  be redirected  from within the  Office  of the
       Administrator to support EPA's new Office of Homeland Security.


COORDINATION WITH OTHER AGENCIES

       EPA will continue to work with the Small Business Administration, as appropriate, on
regulations that affect small businesses.

       The EPA SAB interacts with comparable advisory bodies within and outside the Agency;
in some cases seeking and maintaining liaison and integrated membership with some of these
bodies.   For example, the chairs of  the Office  of Research and Development's  Board of
Scientific  Counselors, the Federal Insecticide, Fungicide, and Rodenticide  Act's  Scientific
Advisory Panel, and the Children's Health Protection Advisory Committee participate in the
quarterly meetings of the  SAB Executive Committee meetings. There are also membership
contacts  and  exchanges  with  technical  advisory  bodies in the Department of Defense,
Department of Energy, and the National Research Council of the National Academy of Sciences.
In addition, the SAB has sought interactions with advisory groups at different levels (e.g., the
advisory committee to the Mayor of Columbus, Ohio; the environmental advisory board to the
Governor of the State of Michigan; the Health Council of the Netherlands; and the Academy of
Sciences of Australia).  The success of the SAB is measured, in part, by the extent to which the
board is used as a model for advisory boards at various levels of government —  from the local to
the international level.

       EPA's Office of Homeland Security will work with senior officials hi the Department of
Homeland Security and other Federal agencies with responsibilities for homeland security.


STATUTORY AUTHORITIES

Administrative Procedure Act
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Americans with Disabilities Act
Civil Rights Act of 1964, Title VI
Civil Rights Act of 1964, Title VII
Clean Air Act Amendments of 1977 and 1990
Clinger-Cohen Act
Commission and the North American Development Bank
Computer Security Act
Congressional Review Act
Enterprise for the Americas Initiative Act (7 U.S.C. 5404)
Environmental Research, Development, and Demonstration Authorization Act of 1978
Federal Advisory Committee Act (FACA) (5 U.S.C. App.)
Government Performance and Results Act (GPRA)
Executive  Order 12915  - Federal Implementation of the North American Agreement on
   Environmental Cooperation
Executive Order 12916 - Implementation of the Border Environment Cooperation
  Commission and the North American Development Bank
North American Agreement on Environmental Cooperation
Rehabilitation Act of 1973
The National Strategy for Homeland Security, White House Office of Homeland Security, July
   2002
Uniting and Strengthening America by Providing Appropriate Tools Required to
  Intercept and Obstruct Terrorism Act (USA Patriot Act)
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Office of the General Counsel
Program Project
Alternative Dispute Resolution
Legal Advice: Environmental Program
Legal Advice: Support Program
FY 2003
Actuals
$877.9
$33,913.7
$8,871.3
FY2004
Pres. Bud.
$1,153.4
$34,722.9
$12,240.9
FY2005
Pres. Bud.
$1,889.6
$35,522.8
$12,521.7
       The Office of General Counsel (OGC) and the Offices of Regional Counsel (ORCs) will
provide legal  representational services, legal  counseling, and legal support for  all Agency
environmental activities  and for all activities necessary for  the  operation of the Agency.
Additionally, these resources are used by the OGC to provide environmental Alternative Dispute
Resolution services.
FY 2005 REQUEST

Alternative Dispute Resolution

       In FY 2005, this OGC program will provide conflict prevention and alternative dispute
resolution (ADR) services to EPA Headquarters and Regional Offices, and external stakeholders
on environmental matters. The national ADR program assists hi developing effective ways to
anticipate, prevent, and resolve disputes, and makes neutral third parties - such as facilitators and
mediators — more readily available for those purposes.  Under EPA's ADR Policy, the Agency
encourages the use of ADR techniques to prevent and resolve disputes with external parties in
many contexts, including adjudications, rulemaking, policy development, administrative and
civil judicial enforcement actions, permit issuance, protests of contract awards, administration of
contracts and grants, stakeholder involvement, negotiations, and litigation.
FY 2005 CHANGE FROM FY 2004
EPM
       (+$125,000) Provides funding for contractor support to use ADR in environmental
       matters, including those involving EPA's core regulatory programs, to resolve disputes
       more efficiently. $75,000 of this increase represents a transfer of funds from OECA to
       support ADR enforcement and compliance activities under the Agency's reorganization
       that consolidated resources for EPA's environmental ADR program.   The remaining
       $50,000 is an increase  hi extramural funding for contractor support to  use ADR in
       Regional environmental matters.
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       (-$266,226, -2 FTE) Represents a transfer of workyears and related support costs to
       OARM in accordance with the Agency's reorganization of the ADR function to support
       EPA's Workplace Solutions Staff.

       There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.
Superfund
       (+$874,700, +2 FTE)  Represents a transfer of resources from OECA to support ADR
       enforcement  and  compliance  activities under the Agency's  reorganization of  the
       environmental ADR program.
Legal Advice: Environmental Program

       Legal advice to environmental programs includes, but is not limited to: representing EPA
and providing litigation support in cases where EPA is a defendant as well as those cases where
EPA is not a defendant but may have an interest in the case; providing legal advice, counsel and
support to Agency management and  program offices on matters involving environmental issues
including, for example, providing interpretations of relevant and applicable laws, regulations,
directives, policy and guidance documents, and other materials.
FY 2005 CHANGE FROM FY 2004

EPM
    •  There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.

SF
    •  There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.


Legal Advice: Support Program

       In FY 2005, legal advice to support programs, provided by the Office of General Counsel
(OGC) and the Offices of Regional Counsel (ORCs), will provide legal representational services,
legal counseling and legal support  for all Agency activities necessary for the operation of the
Agency (i.e., contracts, personnel, information law, ethics, and financial/monetary issues). Legal
services includes, but are not limited to: representing EPA and providing litigation support hi
cases where EPA is a defendant as well as those cases where EPA is not a defendant, but may
have an interest in  the case; providing legal  advice,  counsel and  support  to the Agency
management and  administrative offices on matters involving actions affecting the operation of
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the Agency, including, for example, providing interpretations of relevant and applicable laws,
regulations, directives, policy and guidance documents, and other materials.

FY 2005 CHANGE FROM FY 2004

EPM
    •  There are additional increases for payroll, cost of living, and enrichment  for new and
       existing FTE.

STATUTORY AUTHORITIES

This program/project provides legal advice and services related to all statutes that affect EPA's
implementation of environmental programs. These statutes include but are not limited to the:

Administrative Dispute Resolution Act of 1996
Age Discrimination in Employment Act
Americans with Disabilities Act
Anti-deficiency Act
Anti-Lobbying Act
Civil Rights Act of 1964
Civil Service Reform Act
Clinger Cohen Act
Clean Air Act
Clean Water Act
Competition in Contracting Act
Comprehensive Environmental Response, Compensation, and Liability Act
Computer Security Act
Congressional Review Act
Contract Disputes Act
Copyright Act
Endangered Species Act
Emergency Planning and Community Right_to_Know Act
EPA's various appropriations acts Act of 1990
Equal Pay Act
Federal Activities Inventory Reform Act
Federal Advisory Committee Act
Federal Claims Collection Act
Federal Food, Drug, and Cosmetic Act
Federal Grant and Cooperative Agreement Act
Federal Managers' Financial Integrity Act
Federal Records Act
Federal Technology Transfer Act
Federal Tort Claims Act
Federal Insecticide, Fungicide, and Rodenticide Act
Freedom of Information Act
Government Paperwork Elimination Act
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Government Performance and Results Act
Military and Civilian Employees' Claims Act
Negotiated Rulemaking Act of 1996
National Environmental Policy Act
North American Agreement on Environmental Cooperation
Oil Pollution Act
Paperwork Reduction Act
Pollution Prevention Act
Privacy Act
Regulatory Flexibility Act
Rehabilitation Act
Resource Conservation and Recovery Act
Safe Drinking Water Act
Small Business Regulatory Enforcement Fairness Act
Superfund Amendments and Reauthorization Act
Toxic Substances Control Act
Trademark (Lanham)  Act
U.S. Patent Statute
Unfunded Mandates Reform Act
Uniform Relocation Assistance and Real Property Acquisition Policies Act
Whistleblower Protection Act
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Office of the Inspector General
Program Project
Audits, Evaluations, and Investigations
FY 2003
Actuals
$46,612.9
FY2004
Pres. Bud.
$50,021.3
FY2005
Pres. Bud.
$51,135.6
       All Office of the Inspector General (OIG) work is planned based on the anticipated value
toward influencing  resolution of the Agency's major management challenges, reducing risk,
improving practices and program operations, and saving taxpayer dollars while leading to the
attainment of EPA's Strategic Goals. Our strategic plan aligns OIG products and services with
current Agency goals and priorities based upon emerging issues, legislative initiatives, needs of
various customers, clients and stakeholders, and multiple dynamic external factors.

FY 2005 REQUEST

Audits, Evaluations, and Investigations

       The OIG provides audit, evaluation, investigative, and advisory services that fulfill the
requirements of the IG Act, as  amended, and contribute to  improved Agency management,
environmental quality,  and human health.  The work of the  OIG supports the attainment of
Agency Strategic Goals and assists the Agency hi resolving its top  management challenges.
Audits and program evaluations,  selected based on relative risk, materiality, and results of past
reviews,  identify best practices, areas for improvement, and cooperative solutions to problems.
Investigations  focus on  alleged fraud, waste, abuse, and other  illegal  activities  by  EPA
employees, contractors, and  grantees.  Advisory and assistance services, which include a wide
range of products  and services, are designed to give Agency  managers and  congressional
requesters information they need more expediently than audits or evaluations, and to assist EPA
management in assessing and/or implementing control systems and processes.

       During FY 2005, the  OIG will: 1) perform program evaluations and audits to provide
Congress and  the Agency with best practices, analyses, and recommendations to address the
most  serious   management  challenges,  accomplish  environmental  objectives,    achieve
Government Performance and Results Act  (GPRA) goals, and safeguard resources; 2) conduct
investigations which focus on detection and prosecution of financial fraud, laboratory fraud, and
cyber crime; 3) partner with others, including other Federal and State auditors, evaluators, law
enforcement officials, and associations who also have environmental missions, to leverage our
resources to attain maximum environmental benefits  with  available  resources;  and,   4)
implement  human capital  strategies that  will ensure that the OIG  has a diverse, highly
motivated, and accountable  staff with the  skill sets and tools needed to perform increasingly
complex work.

       The IG will also hold the position of Inspector General  for the Chemical Safety and
Hazard  Investigation  Board (Board) as  stipulated in  Conference Report  108-401  on the
"Consolidated Appropriations  Act, 2004."  The Board  is an independent Federal Agency,
authorized by the Clean Air Act Amendments  of 1990, whose mission is to prevent industrial
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chemical accidents and save lives. The duties of the IG regarding the Board are those outlined in
the IG Act, as amended.

       Audits and Evaluations use sophisticated analytical tools, methodologies, and specialized
skills to determine the extent  to which the desired results and benefits envisioned by the
Administration and Congress are being efficiently and effectively achieved. Investigations focus
on the detection and prosecution of financial fraud, cyber crime, and laboratory fraud.

       OIG audit work determines whether  EPA's programs, systems, and processes are
operating effectively and efficiently. Contract audits determine whether or not a cost claimed by
contractors is permissible, can be allocated and is reasonable. Contract audits also assess the
effectiveness of EPA's contract management. Assistance agreement audits consist of financial
and performance  audits of EPA's State Revolving Fund programs, EPA grants, interagency
agreements, and  cooperative agreements.  Financial  statement audits include audits of the
Agency's financial systems and statements to ensure that adequate controls are in place and the
Agency's financial information  is timely,  accurate,  reliable, and  useful, and complies  with
applicable laws and regulations. System audits review the economy, efficiency, and effectiveness
of operations by examining  the Agency's support systems for achieving environmental goals,
including  its  information  systems  and  systems  for  setting  priorities,  developing  and
implementing strategies to accomplish them, and measuring performance. Our work will focus
on key processes including those related to financial systems, information  systems, human
capital, and project management.

       OIG program  evaluation work  will determine whether EPA's programs, projects, and
tasks  are achieving the desired results and impacts  in the most  efficient and cost-effective
manner.  Staffed  with a mix of program analysts,  scientists,  auditors, economists,  and others,
program evaluations will assist the Agency in identifying what works and at what cost.  Process
evaluations assess the extent to which a  program is operating  as it was intended;  outcome
evaluations assess the extent to which a program achieves its outcome-oriented objectives;
impact evaluations assess net effect of a program by comparing outcomes with the absence of the
program; and cost benefit evaluations compare a program's outputs or outcomes with the costs to
produce them.

       OIG investigative work will contribute to improving the environment and EPA programs
and operations; identify and close high risk vulnerabilities and systemic weaknesses; and obtain
prosecutions, recoveries, indictments, and convictions for criminal activity, and appropriate civil
and  administrative remedies.    Financial  fraud investigations  include  several types  of
investigations.  Contract fraud investigations focus on financial crimes, criminal  activity, or
serious misconduct in the performance of EPA contracts, or are related to contract procurement
practices. Assistance agreement investigations focus  on financial crimes, criminal  activity, or
serious misconduct   in the  performance of EPA  grants to individuals,  businesses,  or
organizations,  or  are  related to  the  application and  awarding of EPA  grant monies.  These
investigations  address similar activity in the use of EPA money involved in State Revolving
Funds, interagency agreements, and cooperative agreements awarded to state, local, and Tribal
governments, universities, and nonprofit recipients.
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       Employee integrity  investigations focus on allegations of criminal activity or serious
misconduct by EPA employees that could threaten the credibility of the Agency, validity of
executive decisions, security of personnel  or business information entrusted to the Agency, or
financial loss to the Agency. Program integrity investigations focus on serious misconduct or
criminal activity that could undermine or erode the public trust  and confidence in EPA, its
programs, or its employees.

       The OIG Computer Crimes Directorate (CCD) focuses on cyber crime and interacts with
the law enforcement community, such as the Federal Bureau of Investigation, sharing expertise
and working collaboratively.  The CCD develops investigative responses to suspect computer
intrusions, supports the OIG and Agency personnel with a Penetration Laboratory, and assists the
Office of Investigations with its Forensic Laboratory.  The CCD's Intrusion Unit monitors all
computer incidents reported to or by  the  Agency and performs intrusion assessments to
determine whether investigative activity is warranted.  The  Penetration Laboratory  supports
Agency information security personnel as they examine the Agency network for weaknesses and
vulnerabilities.   The  Forensics Unit conducts  forensic examinations to locate and  preserve
evidence in electronic media.

       The OIG initiative to uncover criminal activity in laboratories focuses on investigating
indicators of laboratory fraud within the environmental community to include commercial and
EPA laboratories.  The Agency relies upon  laboratory test results to assess environmental threats
and determine what  actions are necessary to control hazardous wastes,  toxins,  and other
contaminated substances that pollute our air, water, and land. These investigations generally are
part of contract investigations or program integrity investigations.

The OIG will concentrate work in the following areas during FY 2005:

Air

Particulate Matter: How can EPA maximize the effectiveness of its fine particulate matter (PM
2.5) ambient  monitoring and emissions control strategies? Ozone Attainment: How can EPA
better execute ozone reduction strategies?

Air Toxics: How can EPA improve the effectiveness of its efforts to assess, monitor, control, and
reduce the risks of toxic air pollutants to human health and the environment?

Challenges to Further Progress: How can  EPA maximize the contributions of State, local, and
Tribal agencies in continuing progress toward meeting clean air goals?

Water

Drinking Water: How can EPA effectively implement the Safe Drinking Water Amendments of
1996?

Watershed Protection: How can EPA effectively control, protect, and monitor watersheds and
water quality?
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Reducing Pollutant Loadings: How can EPA effectively use and improve policy tools to reduce
water pollutant loadings?

Land

Superfund: Is EPA making progress toward effective risk reduction and waste cleanup?

Brownfields:  Is EPA making progress toward effective  risk reduction,  cleanup, and restoring
previously polluted sites to appropriate uses?

Resource Conservation and Recovery Act (RCRA):  Is EPA making progress toward effective
waste management, hazardous material management, and risk reduction?

Cross-Media

Homeland Security: How can EPA better execute its  homeland security  responsibilities to
prevent, prepare for, and respond to a terrorist attack to minimize adverse impacts on human
health and the environment?

Environmental Stewardship: Do the States and tribes use high performance concepts to deliver
environmental and human health protection?

Environmental Justice: How  well are environmental  justice concerns incorporated into EPA
decision  making?  Do  EPA policies and  practices disproportionately  contribute to  adverse
impacts on human health and the environment in communities of concern?

Compliance Assurance and Enforcement: Is the employment of traditional and nontraditional
enforcement  approaches optimized to  ensure compliance  with  environmental  rules  and
regulations that are designed to protect human health and the environment?

Good Government

Financial Management: Does EPA have the people, processes, and systems needed to efficiently
provide timely, accurate, complete, and useful financial information for decision making  and
accountability?

Information Resources Management: Does EPA have  systems, processes, and controls in place
to ensure that timely, reliable, and complete information is available to manage EPA's programs
and report on environmental results?

Program Management: Does EPA have the systems and processes in place to plan, budget  for,
and manage programs, including the human capital needed to carry out its mission?

Assistance Agreements: Is  EPA using assistance  agreements to efficiently and effectively
accomplish its mission?
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Contracts: Is EPA using contracts to efficiently and effectively accomplish its mission?

Public Liaison

       The OIG Hotline will receive and review complaints and allegations of inappropriate
decisions, actions, or activities involving Agency programs, employees, contractors, or grantees.
The Hotline recommends work assignments for staffing within OIG offices, monitors those work
assignments,  and reviews  reports of findings  and recommendations.  The Ombudsman also
informs external stakeholders of the results of reviews and reports on fiscal year activity.

FY 2005 Change from FY 2004
IG
    •  There are additional increases for payroll, cost of living, and enrichment for new and
       existing FTE.

    •  (+$500,000) Increase  for EPA's Office  of Inspector General to  carry out its new
       responsibilities as  the Inspector General  for the  Chemical Safety  and  Hazardous
       Investigation Board.
SF
       (-$75,000) Decrease to fund a portion of the fixed costs increase in Superfund.
ANNUAL PERFORMANCE GOALS AND MEASURES

Fraud Detection and Deterrence

In 2005     In 2005, the OIG will improve Agency business and operations by identifying 240 recommendations,
           potential savings and recoveries equal to 200 percent of the annual investment in the OIG, 102 actions
           for better business operations, and 80 criminal, civil, or administrative actions reducing risk or loss of
           integrity.

In 2004     In 2004, the OIG will improve Agency business and operations by identifying 240 recommendations,
           contributing to potential savings and recoveries  equal to 150 percent of the annual investment in the
           OIG, 100 actions for greater efficiency and effectiveness, and 80 criminal, civil, or administrative
           actions reducing the risk of loss or integrity.

In 2003     In the Annual Performance Report, our results for APG 2 were combined with the results for APG 1.

Performance Measures:                     FY2003  FY2004     FY2005
                                          Actuals   Pres. Bud.    Pres. Bud.
Number of improved business  practices and     138        100          102      Improvements
systems.

Number of criminal, civil, and  administrative     83          80          80      Actions
actions.
Number of business recommendations, risks, and    264
best practices identified.
240
240
Recommendations
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Performance Measures:                     FY2003  FY2004      FY2005
                                         Actuals   Pres. Bud.    Pres. Bud.
Return on the  annual dollar investment in the     856        150         200      Percent
OIG.
Baseline:    In FY 2002, the OIG established a baseline of 150 business recommendations, 70 improved business
           practices, and 50 criminal, civil, and administrative actions for improving Agency management; and a
           100% potential dollar return on the investment in the OIG from savings and recoveries.


Audit and Advisory Services

In 2005     In 2005, the OIG will contribute to improved environmental quality and human health by identifying
           95  environmental recommendations, best practices, risks,  or opportunities for  improvement;
           contributing to the reduction or elimination of 23 environmental or infrastructure security risks; and 45
           actions influencing environmental improvements or program changes.

In 2004     In  2004,  the OIG  will  improve  environmental quality and  human health by identifying 80
           recommendations,  risks, or best practices;  contributing  to  the reduction or elimination of 18
           environmental risks; and 42 actions influencing positive environmental or health impacts.

In 2003     Improve environmental quality and human health by identifying 48 environmental recommendations,
           risks, and best practices; contributing to the reduction of 9 environmental risks, and 47  actions
           influencing positive environmental or health impacts.

Performance Measures:                    FY2003  FY2004    FY2005
                                         Actuals   Pres.      Pres. Bud.
                                                   Bud.
Number of environmental risks reduced.             9         18         23       Risks

Number of environmental actions.                 47        42         45       Improvements

Number  of  environmental  recommendations,     48        80         95       Recommendations
risks, and best practices identified.
Baseline:  In FY 2002, the OIG established a baseline of: 75 recommendations, best practices and risks identified
contributing to unproved  Agency environmental  goals;  15 environmental  actions; and the  reduction of 15
environmental  risks.  The FY 2004  performance measure targets for  environmental measures were revised
downward due to actual experience gained within the past year.
VERIFICATION AND VALIDATION OF PERFORMANCE MEASURES

FY   2005   Performance  Measures:   Number   of  actions  taken  for  environmental
improvement,  reductions  in  environmental risks,  and  recommendations  made  for
environmental improvement.  Number of  actions taken for improvement in  business
practices,   criminal/civil/administrative    actions,   potential   dollar    return,   and
recommendations made for improved business practices.

Performance Database:   The OIG Performance Measurement and  Results System is used to
capture and aggregate information on an array of measures in a logic model format, linking
                                           ESP-54

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immediate outputs with longer term intermediate outcomes and results.  Because intermediate
and long-term results may not be realized for several years, only verifiable results are reported in
the year completed,  while others remain prospective until completed and verified. Database
measures  include numbers of:l)  recommendations  for environmental  and  management
improvement; 2) legislative, regulatory policy, directive, or process changes; 3) environmental
and integrity risks identified, reduced or eliminated; 4) best practices identified and transferred;
5) examples of environmental and management improvements; and 6)  monetary value of funds
questioned, saved, fined or recovered.

Data Source:  Designated OIG staff enter data into the system. Data are from OIG performance
evaluations, audits, research, court records and from EPA  documents,  data systems and reports
that  track environmental and management  actions or improvements  made, risks reduced or
avoided. OIG also collects independent data from EPA's partners and stakeholders.

Methods, Assumptions and Suitability: OIG performance results are a chain of linked events,
starting with OIG outputs (e.g., recommendations, reports of best practices and identification of
risks). The subsequent  actions taken by EPA or its stakeholders/partners, as a result of OIG's
outputs, to  improve operational efficiency and environmental  program delivery are reported as
intermediate  outcomes.  The   resulting  improvements   in operational  efficiency,  risks
reduced/eliminated, and conditions of environmental and human health are reported as outcomes.
By using common categories of performance measures, quantitative results can be summed  and
reported. Each outcome is also  qualitatively described, supported and linked to an OIG product
or output. The OIG can only control its outputs, and has no authority, beyond its influence, to
implement its recommendations.

QA/QC Procedures:  All performance data submitted to the  database require at least  one
verifiable source assuring data  accuracy and reliability. Data  quality assurance and control are
performed as an extension of OIG products and services, subject to rigorous compliance with the
Government Auditing Standards  of the Comptroller General, and regularly reviewed  by OIG
management, an independent  OIG  Management  Assessment  Review  Team, and  external
independent peer reviews. The statutory mission of the OIG is  to independently evaluate the
integrity of Agency operations and reporting systems. The OIG has  also  issued its own data
quality policy and procedures.

Data Quality Reviews: There have not been any previous audit findings or reports by external
groups  on  data  or  database weaknesses in the OIG Performance Measurement  and Results
System.

Data Limitations:   All OIG  staff are responsible for data accuracy  in  then* products  and
services.  However, there is a possibility of incomplete, miscoded, or missing data in the system
due to human error or time lags. Data supporting achievement of results are often from indirect
or external sources, with their own methods or standards for data verification/validation.

Error Estimate:  The error rate for outputs is estimated at +1-5%,  while the error rate for
reported outcomes is estimated to be at least +/-10%.
                                        ESP-55

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                      Environmental Protection Agency

       FY 2005 Annual Performance Plan and Congressional Justification

                    ENABLING/SUPPORT PROGRAMS
Acquisition Management, ESP-8, ESP-10
Administrative Law, ESP-36
Alternative Dispute Resolution, ESP-45
Audits, Evaluations, and Investigations, ESP-49
Brownfields, ESP-52
Central Planning, Budgeting, and Finance, ESP-29
Civil Rights / Title VI Compliance, ESP-36
Congressional, Intergovernmental, External Relations, ESP-5, ESP-6, ESP-36
Environmental Justice, ESP-52
Exchange Network, ESP-15, ESP-16, ESP-17, ESP-18, ESP-19, ESP-20, ESP-21
Facilities Infrastructure and Operations, ESP-8, ESP-9
Financial Assistance Grants / IAG Management, ESP-8, ESP-12
Homeland Security
  Communication and Information, ESP-15, ESP-36
  Protection of EPA Personnel and Infrastructure, ESP-1, ESP-3, ESP-8, ESP-34
Human Resources Management, ESP-8, ESP-11
Information Security, ESP-15, ESP-18, ESP-22, ESP-24, ESP-25, ESP-28, ESP-56
IT / Data Management, ESP-5, ESP-15
Legal Advice
  Environmental Program, ESP-45, ESP-46
  Support Program, ESP-45, ESP-46
Regional Science and Technology, ESP-36, ESP-40
Science Advisory Board, ESP-31, ESP-36, ESP-41
Small Minority Business Assistance, ESP-36, ESP-42

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Performance Goals and Measures

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                                              Environmental Protection Agency

                              FY 2005 Annual Performance Plan and Congressional Justification

                                                   6-Year Performance Data
                                           Annual Performance Goals and Measures

GOAL: 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 intensity by enhancing partnerships with businesses and other sectors.

       OBJECTIVE: HEALTHIER OUTDOOR AIR

       Through 2010, working with partners, protect human health and the environment by attaining and maintaining health-based
       air-quality standards and reducing the risk from toxic air pollutants.

       Reduce Air Toxic Emissions

       In 2005         Air toxics emissions nationwide from stationary and mobile sources combined will be reduced by an additional 1% of the updated
                      1993 baseline of 6.0 million tons for a cumulative reduction of 38%.

       In 2004         Air toxics emissions nationwide from stationary and mobile sources combined will be reduced by an additional 2% of the updated
                      1993 baseline of 6.0 million tons for a cumulative reduction of 37%.

       In 2003         End-of-year- FY 2003 data will be available in late 2009 to verify that air toxics emissions nationwide from stationary and mobile
                      sources combined will be reduced by an additional  1% of the updated 1993 baseline of 6.0 million tons for a cumulative reduction
                      35%.

       In 2002         End-of-year FY 2002 data will be available in late  2006 to verify that air toxics emissions nationwide from stationary and mobile
                      sources combined will be reduced by 1.5% from 2001 for a cumulative reduction of 33.5% from the 1993 baseline of 6.0 million tons
                      per year.

       In 2001         End-of-year FY 2001 data will be available in late  2006 to verify that air toxics emissions nationwide from stationary and mobile
                      sources combined will be reduced by 5% from 2000 (for a cumulative reduction of 35% from the 1993 level of 4.3 million tons.)

        In 2000         End-of-year FY 2000 data will be available in late  2006 to verify that air toxics emissions nationwide from stationary and mobile
                      sources combined will be reduced by 3% from 1999 (for a cumulative reduction of 30% from the 1993 level of 4.3 million tons.)

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                                          Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures


Performance Measures                               FY2000     FY2001     FY2002     FY2003     FY2004     FY2005
                                                    Actuals      Actuals      Actuals      Actuals     Pres. Bud.   Pres. Bud.
Combined Stationary and Mobile  Source Reductions in   Data Lag     Data Lag     Data Lag    Data Lag    2           1           Percent
Air Toxics Emissions

Mobile Source Air Toxics Emissions Reduced                                                             .71          .80         Million Tons

Stationary Source Air Toxics Emissions Reduced                                                          1.59        1.59        Million Tons

Major Sources, Area and All Other Air Toxics Emissions                                                   +.13        +.14        Million Tons
Reduced



Baseline:       In 1993, the last year before the MACT  standards and mobile source regulations developed under the Clean Air Act began to be
               implemented, stationary and mobile sources are now estimated to have emitted 6.0 million tons of air toxics. (EPA's prior estimate
               was 4.3 million tons and was updated with improved inventory data.)  Air toxics emission data are revised every three years to
               generate inventories for the National Toxics Inventory (NTI). In the intervening years between the update of the NTI, the model EMS-
               HAP (Emissions Modeling System for Hazardous Air Pollutants) is used to estimate and project annual emissions of air toxics. EMS-
               HAP projects emissions, by adjusting point, area and mobile emission data to account for  growth and emission reductions resulting
               from emission reduction scenarios such as the implementation of the Maximum Achievable Control Technology (MACT) standards.

Reduce SO2 Emissions

In 2005        Keep  annual emissions below level authorized by allowance holdings and make progress towards achieving the year 2010 SO2
               emissions cap for utilities. Annual emissions reduction target is 6.9 million tons  from the 1980 baseline.

In 2004        Maintain or increase annual SO2 emission reduction of approximately 5 million tons from the 1980 baseline. Keep annual emissions
               below level authorized by allowance holdings and make progress towards achievement of Year 2010 SO2 emissions cap for utilities.

In 2003        End of year 2003 data will be available in the last quarter of 2004 to verify that annual emissions reduction of approximately 5 million
               tons from utility sources were maintained or increased during 2003.

In 2002        SO2 emissions were reduced by 35% from the 1990 level of 15.9 million tons and approximately 40% from the 1980 level of 17.5
               million tons.

In 2001        Approximately 5 million tons of SO2 emissions from utility sources were reduced from the 1980 baseline.

                                                            2

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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures
In 2000         6.3 million tons of SO2 emissions from utility sources were reduced from 1980 baseline.

Performance Measures

S02 Emissions
FY 2000
Actuals
6,300,000
FY 2001
Actuals
6,670,000
FY2002     FY2003
Actuals     Actuals
7,000,000    Data Lag
            FY2004     FY200S
            Pres. Bud.   Pres. Bud.
            5,000,000    6,900,000    Tons Reduced
Baseline:       The base of comparison for assessing progress on the annual performance goal is the 1980 emissions baseline.  The 1980 SO2
               emissions inventory totals 17.4 million tons for electric utility sources, this inventory was developed by National Acid Precipitation
               Assessment Program (NAPAP) and used as the basis for reductions in Title IV of the Clean Air Act Amendments.  This data is also
               contained in EPA's National Air Pollutant Emissions Trends Report.  Statutory SO2 emissions cap for year 2010 and later is at 8.95
               million tons which is approximately  8.5 million tons below 1980 emissions level.  "Allowable SO2  emission level" consists of
               allowance allocations granted to sources each year under several provisions of the Act and  additional  allowances carried over, or
               banked, from previous years.

Reduce NOx Emissions

In 2003        End of year 2003 data will be available in Summer 2004 to verify that the Agency has achieved the annual emission reduction goal.

In 2002        EPA reduced annual NOx emissions from coal-fired utility sources by 3.5 million tons from the  modeled projections of NOx
               emissions that would have been emitted in 2000 without implementation of Title IV of the Clean Air Act Amendments.

In 2001        2 million tons of NOx from coal-fired utility sources were reduced from levels that would have been emitted without implementation
               of Title IV of the Clean Air Act Amendments.

In 2000        2 million tons of NOx from coal-fired utility sources were reduced from levels before implementation of Title IV of the Clean Air Act
               Amendments.
Performance Measures

NOx Reductions   .
FY 2000
Actuals
2,000,000
FY 2001
Actuals
2,000,000
FY 2002
Actuals
3,500,000
FY 2003
Actuals
Data Lag
FY 2004
Pres. Bud.
FY 2005
Pres. Bud.
                        Tons Reduced

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                                          Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Baseline:       Performance Baseline:  The base of comparison for assessing progress on this annual performance goal is emissions that would have
               occurred in the absence of Title IV of the Clean Air Act Amendments.

Reduce Exposure to Unhealthy Ozone Levels -1 Hour

In 2005
In 2004
In 2003
In 2002
In 2001
In 2000
The number of people living in areas with monitored ambient ozone concentrations below the NAAQS for the 1-hour ozone standard
will increase by 4% (relative to 2004) for a cumulative total of 53% (relative to 1992).

The number of people living in areas with monitored ambient ozone concentrations below the NAAQS for the 1-hour ozone standard
will increase by 4% (relative to 2003) for a cumulative total of 47% (relative to 1992).

Maintained healthy air quality for approx.  161.5 million people living in monitored areas attaining the ozone std; certified that 5 areas
of the remaining 54 nonattainment areas have attained the 1-hour NAAQS for ozone thus increasing the no. of people living in areas
with healthy air by 5.8 million.

Maintained healthy air quality for 155 million people living in monitored areas attaining the ozone standard; and certified 2 areas of
the remaining 55 nonattainment areas attained the 1-hour NAAQS for ozone, thus increasing the number of people living in areas with
healthy air by 3.6 million.

EPA maintained healthy air quality for  152 million people living in 43 areas attaining the ozone standard, increased by 170,000 the
number of people living in areas with healthy air quality that have newly attained the standard by certifying that 3 new areas have
attained the 1-hour standard.
Maintained healthy air quality for 152 million people living in 42 areas attaining the ozone standard.
                                                    FY2000
                                                    Actuals
                                                 FY2001
                                                 Actuals
FY 2002
Actuals
FY2003
Actuals
Data Lag
FY 2004
Pres. Bud.
47
FY 2005
Pres. Bud.
53           Percent
Performance Measures

Cumulative Percent Increase in the Number of People
who  Live  in  Areas  with  Ambient   1-hour  Ozone
Concentrations Below the Level  of the  NAAQS  as
Compared to 1992
Cumulative Percent Increase in the Number of Areas with                                          Data Lag     55           40           Percent
Ambient  1-hour Ozone Concentrations Below the Level
of the NAAQS as Compared to 1992
Total Number of People who Live in Areas Designated to   151,868,200   152,038,400   155,678,900   161,485,905   167,300,000  174,562,000  People

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
                                                    FY 2000
                                                    Actuals
Performance Measures

Attainment of the Clean Air Standards for Ozone
Areas Designated to Attainment for the Ozone Standard     0
Additional People Living in Newly Designated  Areas   1,017,545
with Demonstrated Attainment of the Ozone Standard
FY 2001
Actuals


1

170,200
FY 2002
Actuals


2

3,640,507
FY 2003
Actuals
FY 2004
Pres. Bud.
FY 2005
Pres. Bud.
                                                                                           5,800,000     5,800,000     7,276,790
                                        Areas
                                        People
VOCs Reduced from Mobile Sources

NOx Reduced from Mobile Sources
                                                    1,562,000
                                                    1,059,000
1,659,000

1,189,000
1,755,000

1,319,000
1,900,000

1,400,000
2,040,000

1,653,000
855,624

1,693,259
Tons

Tons
Baseline:       The 1992 baseline for population is the population in areas not classified or designated as attainment for the clean air national ambient
               air quality standards. The 1992 baseline for areas is those areas that are designated as non-attainment of the NAAQs.  Through FY
               2003, 161,485,905 people are living in areas designated to attainment; 51 areas are designated to attainment for this/these pollutants.
               The 2000 MOBILE 6 inventory is used as the baseline year for mobile source emissions as of FY 2005.  The 2000 baseline for VOC
               emissions is 7.7 million tons; the baseline is 11.8 million tons. The 2000 MOBILE 6 inventory is used as the baseline year for mobile
               source emissions as of FY 2005. The 2000 baseline for VOC emissions is 7.7 million tons; the baseline is 11.8 million tons.  Beginning in FY
               2004, EPA changed the basis for evaluating progress for this measure to reflect actual measured levels of air quality. Previously, EPA
               had not defined an area as having clean air until the area was formally classified as having met health-based standards.  The
               procedural requirements for classification may require a year or more to complete. The previous total population numbers were for
               2000-33.4 million(m) 2001 -38.2m; 2002-41.7m; 2003 -47.8m.

Reduce Exposure to Unhealthy PM Levels - PM-10

In 2005        The number of people  living in areas with monitored ambient  PM concentrations below the NAAQS for the PM-10 standard will
               increase by 1% (relative to 2004) for a cumulative total of 7% (relative to 1992).

In 2004        The number of people  living in areas with monitored ambient  PM concentrations below the NAAQS for the PM-10 standard will
               increase by 1% (relative to 2003) for a cumulative total of 6% (relative to 1992).

In 2003        Maintained healthy air quality for 120 million people living in monitored areas attaining the PM standards; increased by 252 thousand
               the number of people living in areas with healthy air quality that have newly attained the standard.

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
In 2002        Maintained healthy air quality for 120 million people living in monitored areas attaining the PM standards; and increased by 2.7
               million the number of people living in areas with healthy air quality that have newly attained the standard.

In 2001        EPA maintained healthy air quality for 117 million people living in 9 areas attaining the PM standards and increased by 2.2 million
               the number of people living in areas with healthy air quality that have newly attained the standard.

In 2000        Maintained healthy air quality for 115 million people living in 7 areas attaining the PM standards, and increased by 18 thousand the
               number of people living in areas with healthy air quality that have attained the standard.
Performance Measures

Cumulative Percent Increase  in the Number of People
who Live in Areas with Ambient PM-10 Concentrations-
Below the Level of the NAAQSas Compared to 1992

Cumulative Percent Increase in the Number of Areas with
Ambient PM-10 Concentrations Below the Level of the
NAAQSas Compared to 1992

Total Number of People who Live in Areas Designated in
Attainment with Clean Air Standards for PM

Areas Designated to Attainment for the PM-10 Standard

Additional  People Living in  Newly Designated Areas
with Demonstrated Attainment of the PM Standard

PM-10 Reduced from Mobile Sources

PM-2.5 Reduced from Mobile Sources
FY2000
Actuals
FY 2001
Actuals
FY2002
Actuals
FY 2003
Actuals
Data Lag
FY 2004
Pres. Bud.
6
                                       Data Lag     40
FY2005
Pres. Bud.
7
                                                    50
                                                                             Percent
                                                   Percent
115,107,800   117,437,659   120,126,600  120,379,036   120,700,000   122,308,000   People
1
18,587
20,000
15,000
8
2,239,859
22,000
16,500
4
2,688,990
23,000
17,250
5
252,387
25,000
18,000
9
380,000
18,000
13,500
4
1,549,648
62,161
61,217
Areas
People
Tons
Tons
Baseline:       The 1992 baseline for population is the population in areas not classified or designated as attainment for the clean air national ambient
               air quality standards. The 1992 baseline for areas is those areas that are designated as non-attainment of the NAAQs.  Through FY
               2003, 120,379,036 people are living in areas designated to attainment; 5 areas are designated to attainment for this/these pollutants.
               The 1995 baseline for PM-10 reduced from mobile sources is 880,000 tons.   The 2000 MOBILE 6 inventory is used as the baseline
               for mobile source emissions as of FY 2005.  The 2000 baseline for PM 2.5 from mobile sources is 500,000 tons; the 2000 baseline for
               PM 2.5 from mobile sources is 613,000 tons. Beginning in FY 2004, EPA changed the basis for evaluating progress for this measure

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                      Annual Performance Goals and Measures
               to reflect actual measured levels of air quality. Previously, EPA had not defined an area as having clean air until the area was formally
               classified as having met health-based standards.  The procedural requirements for classification may require a year or more to
               complete. The previous total population numbers were for 2000 -1.2 million (m) 2001 - 1.2m; 2002- 3.4m; 2003 - 6.2m.

Reduce Exposure to Unhealthy CO, SO2, NO2, Lead

In 2005        The number of people living in areas with monitored ambient CO, NO2, SO2, or Pb concentrations below the NAAQS will increase
               by less than 1% (relative to 2004) for a cumulative total of 53% (relative to 1992).

In 2004        The number of people living in areas with monitored ambient CO, NO2, SO2, or Pb concentrations below the NAAQS will increase
               by 4% (relative to 2003) for a cumulative total of 53% (relative to 1992).

In 2003        Maintained healthy air quality for 167 million people living in monitored areas attaining the CO, SO2, N02, and Lead standards;
               increased by .435 million the number of people living in areas with healthy air quality that have newly attained the standard.

In 2002        Maintained healthy air quality for 167 million people living in monitored areas attaining the CO, SO2, NO2, and Lead standards; and
               increased by 16.5 million, the number of people living in areas with healthy air quality that have newly attained the standard.

In 2001        EPA maintained healthy air quality  for 150 million people living in 91 areas attaining the CO, SO2, N02, and Lead  standards and
               increased by 418,000 the number of people living in areas with healthy air quality that have newly attained the standard.

In 2000        Maintained healthy air quality for  150 million people living in 82 areas attaining the CO, SO2,  NO2, and Lead standards, and
               increased by 4.5 million the number of people living in areas with healthy air quality that have attained the standard.
                                                   FY 2000
                                                   Actuals
FY 2001
Actuals
Performance Measures

Cumulative Percent Increase in the  Number  of People
who Live in Areas with Ambient CO, SO2, NO2, or Pb
Concentrations Below the Level of  the  NAAQS as
Compared to 1992

Cumulative Percent Increase in the Number of Areas with
Ambient CO, SO2, NO2, or Pb Concentrations Below the
Level of the NAAQS as Compared to  1992

Total Number of People Living in Areas Designated in   150,523,186  150,914,043
Attainment with Clean Air Standards for CO, SO2, NO2,
FY2002
Actuals
FY 2003
Actuals
FY 2004
Pres. Bud.
53
                                                                                                        87
FY 2005
Pres. Bud.
53
                                                     77
                                                                                                                                   Percent
                                                      Percent
                                                                              167,425,596   167,860,905   174,000,000   174,222,000    People

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures
andPb
FY 2000
Actuals
Areas Designated to Attainment for the CO, SO2, NO2,   10
and Pb Standards

Additional People Living in Newly  Designated Areas  4,503,306
with Demonstrated Attainment of the CO, SO2, NO2, and
Pb Standards
FY 2001
Actuals

9


418,000
FY2002
Actuals

12
FY 2003
Actuals
                          16,483,800    435,309
FY 2004
Fres. Bud.


19
FY 2005
Pres. Bud.
                          6,150,000    209,991
                                                                                Areas
                                         People
CO Reduced from Mobile Sources
10,341,000
Total  Number  of  People  Living  in  Areas  with   13,000,000
Demonstrated Attainment of the NO2 Standard
10,672,000

14,944,000
11,002,000

14,944,000
             12,636,000    -841,971        Tons

             n/a          n/a            People
Baseline:       The 1992 baseline for population is the population in areas not classified or designated as attainment for the clean air national ambient
               air quality standards. The 1992 baseline for areas is those areas that are designated as non-attainment of the NAAQs.  Through FY
               2003,167,860,905 people are living in areas designated to attainment; 108 areas are designated to attainment for this/these pollutants.
               The 1995 baseline for mobile source emissions for CO was 70,947,000 tons.  For mobile sources, the 2000 MOBILE 6 inventory is
               used as the baseline for FY 2005; the 2000 baseline for CO emissions is 79 million tons. While on-road CO emissions continue to
               decrease, there is an overall increase in mobile source CO emissions due to a growth in nonroad CO. Beginning in FY 2004, EPA
               changed the basis for evaluating progress for this measure to reflect actual measured levels of air quality.  Previously,  EPA had not
               defined an area as having clean air until the area was  formally classified as having met health-based standards.  The procedural
               requirements for classification may require a year or more  to complete. The previous total population numbers were for 2000 -
               27.7million (m) 2001 - 36.3m; 2002 - 36.7m; 2003 - 53.7m.

Reduce Exposure to Unhealthy Ozone Levels - 8 Hour

In 2005        The number of people living in areas with monitored ambient ozone concentrations below the NAAQS for the 8-hour ozone standard
               will increase by 4% (relative to 2004) for a cumulative total of 7% (relative to 2001).

In 2004        The number of people living in areas with monitored ambient ozone concentrations below the NAAQS for the 8-hour  standard will
               increase by 3% (relative to 2003) for a cumulative total of 3% (relative to 2001).

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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                             6-Year Performance Data
                                     Annual Performance Goals and Measures
Performance Measures

Cumulative  Percent Increase in the Number of People
who Live in Areas with Ambient 8-hour Concentrations
Below the Level of the NAAQS as Compared to 2001

Cumulative Percent Increase in the Number of Areas with
Ambient 8-hour Ozone Concentrations Below the Level
of the NAAQS as Compared to 2001
                                   FY2000     FY2001    FY2002    FY2003     FY2004     FY2005
                                   Actuals     Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
                                                                                  <1
<1
                                                                                                         Percent
Percent
Baseline:        EPA will designate the attainment status for areas in April 2004. With that data, we will have the population baseline as well as the
               number of areas that are not in attainment for the 8-hour ozone standard.

Reduce Exposure to Unhealthy PM Levels - PM- 2.5

In 2005
In 2004
The number of people living in areas with monitored ambient PM concentrations below the NAAQS for the PM-2.5 standard will
increase by 1% (relative to 2003) for a cumulative total of less than 1% (relative to 2001).

The number of people living in areas with monitored ambient ozone concentrations below the NAAQS for the PM-2.5 standard will
increase by 1% (relative to 2003) for a cumulative total of less man 1% (relative to 2001).
Performance Measures

Cumulative Percent Increase in the Number of People
who Live in Areas with Ambient PM-2.5 Concentrations
Below the Level of the NAAQS as Compared to 2001

Percent Increase in the Number of Areas with Ambient
PM-2.5 Concentrations Below the Level of the NAAQS
as Compared to 2001
                                   FY2000     FY2001    FY2002    FY2003     FY2004     FY2005
                                   Actuals     Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
                                                                                  1           1           Percent
                                                                                                         Percent
Baseline:       EPA will designate the attainment status for areas in FY 2005.  With that data, we will have the population baseline as well as the
               number of areas that are not in attainment for the PM-2.5 standard.

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                      Annual Performance Goals and Measures
Increase Tribal Air Capacity

In 2004
In 2003
Increase the number of tribes monitoring air quality for ozone and/or particulate matter from 42 to 45 and increase the percentage of
tribes monitoring clean air for ozone from 64% to 67% and particulate matter from 71% to 72%,

39 tribes monitored air quality for ozone and/or particulate matter; 66% of tribes monitored clean air for ozone and 68% monitored for
particulate matter.
Performance Measures

Percent of Tribes with Tribal Lands Monitoring for Ozone
and/or Particulate Matter
Percent of Monitoring Tribes Monitoring Clean Air for
Ozone
Percent of Monitoring Tribes Monitoring Clean Air for
Particulate Matter
Number of Tribes Implementing Air Programs
                                    FY 2000     FY 2001     FY 2002
                                    Actuals     Actuals     Actuals
FY 2003     FY 2004     FY 2005
Actuals     Pres. Bud.   Pres. Bud.
            13                      Percent
                                                                        66


                                                                        68

                                                                        39 tribes
            67


            72

            30
Percent


Percent


Tribes
Baseline:
Acid Rain

In 2005

In 2005

In 2004
There are 570 Federally-recognized Tribes with 341 Tribes having Tribal lands (Alaska Native Villages (Tribes) number 229 entities
but only one 'reservation')-  During 2003, 39 Tribes conducted monitoring for ozone and/or particulate matter; fifteen Tribes
monitored their air sheds for ozone (10 of which recorded clean air) and thirty seven Tribes monitored for particulate matter (25 of
which recorded clean air). EPA will continue to work with the Tribes to increase the number and/or percentage of Tribes that monitor
for clean air.
Reduce total annual average nitrogen deposition and ambient nitrate concentrations 5% from baseline.

Reduce total annual average sulfur deposition and ambient sulfate concentrations 27% from baseline

Reduce total annual average nitrogen deposition and mean ambient nitrate concentrations 5% from baseline
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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures

In 2004         Reduce total annual average suliur deposition and mean ambient sulfate concentrations 25% from baseline.


Performance Measures                               FY2000    FY2001    FY2002     FY2003    FY2004     FY2005
                                                   Actuals     Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
Total  Annual  Average Sulfur Deposition and Ambient                                                  25          27
Sulfate concentrations reduced (per cent from baseline)
Total Annual Average Nitrogen Deposition and Ambient                                                  5           5
Nitrate concentrations reduced (per cent from baseline)


Baseline;       Sulfur and nitrogen deposition contribute to acidification of lakes and streams, making them unable to support fish and other aquatic
               life.  Reductions in both total sulfur and nitrogen deposition is critical to  reducing the number of chronically  acidic water bodies.
               Ambient sulfate and ambient nitrate ("acid rain particulate") contributes to unhealthy air and respiratory problems in humans,
               especially children and other sensitive populations.  The baseline is established from monitored site levels based  on consolidated map
               of    1989-1991    showing    three    years    of   deposition   levels    produced   from   the   CASTNet    site
               (http://www.epa.gov/airmarkets/castnet/sites.html').

OBJECTIVE: HEALTHIER INDOOR AIR

By 2008,22.6 million more Americans than in 1994 will be experiencing healthier indoor air in homes, schools, and office
buildings.

Healthier Residential Indoor Air

In 2005         843,300 additional people will be living in homes with healthier indoor air.

In 2004  4      834,400 additional people will be living in healthier residential indoor environments.

In 2003         End-of-year FY 2003 data will be available in late 2004 to verify that 834,400 additional people were living in healthier residential
               indoor environments.

In 2002         834,400 additional people lived in healthier residential indoor environments.

In 2001         An additional 890,000 additional people lived in healthier residential indoor environments.


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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                       Annual Performance Goals and Measures


In 2000         1,032,000 additional people lived in healthier residential indoor environments.

Performance Measures                               FY2000    FY2001     FY2002     FY2003    FY2004     FY2005
                                                    Actuals     Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
People Living in Healthier Indoor Air                    1,032,000   890,000      834,400     Data Lag    834,400      843300      People



Baseline:        1. By 2005, increase the number of people living in homes built with radon reducing features to 4,539,000 from 1,862,280 in 1994
                (cumulative).*  2. By 2005, decrease the number of children exposed to ETS from 27,502,000 in 1994 to 24,119,404 (cumulative).**
                3. By 2005, increase by 500,000 the number of people with asthma and their caregivers who are educated about indoor air asthma
                triggers.

                * The 1994 baseline for the number of new homes built with radon-resistant design features has changed from 684,000 tO 384,000.
                This is due to a recent review of historical NAHB Research Center reports which determined that a significant number of "rough-in"
                installations were reported as radon-resistant new  construction. "Rough-in" installations are not complete radon-reduction systems
                and do not provide any risk reduction, and they should not be considered when estimating the number of homes built with radon-
                resistant new construction. In order to improve the integrity of the results that are being reported, EPA is dropping homes with rough-
                in installations  when estimating the  amount of homes built  with radon-resistant construction.  The baseline of existing homes
                mitigated remains the same at 300,000 in 1994.

                ** The 1995 Census Report that EPA was using for a baseline population (19,500,000) for children 0  to 6 years of age represented
                only children 0  to 4  years of age. This recently came to our attention after an internal review of the baselines.  The actual baseline
                population of children from the ages of 0 to 6 should be 27,502,168. In order to improve the integrity of the results that are being
                reported, EPA is correcting the baseline population to the comprehensive number which includes the ages 0 to 6 years old. Our 2005
                goal of decreasing the percentage of children exposed, remains at 15% and the starting point remains at 27.3%.

Healthier Indoor Air in Schools

In 2005         1,312,500 students, faculty and staff will experience improved indoor air quality in their schools.

In 2004         1,575,000 students, faculty and staff will experience improved indoor air quality in their schools.

In 2003         End-of-year FY 2003 data will be available in late 2004 to verify  that  1,050,000 students, faculty and staff experienced improved
                indoor air quality in their schools.


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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

In 2002          1,228,500 students, faculty and staff experienced improved indoor air quality in their schools.

In 2001          An additional 1,930,000 students, faculty and staff experienced improved indoor air quality in their schools.

In 2000          2,580,000 students, faculty and staff experienced improved indoor air quality in their schools.

Performance Measures                               FY2000    FY2001     FY2002     FY2003     FY2004     FY2005
                                                    Actuals.     Actuals      Actuals      Actuals      Pres. Bud.   Pres. Bud.
Students/Staff Experiencing Improved IAQ in Schools      2,580,000   1,930,000    1,228,500    Data Lag     1,575,000    1,312,500    Students/Staff



Baseline:        The nation has approximately 117,000* schools with an average of 525 students, faculty and staff occupying them for a total baseline
                population of 61,425,000. The IAQ "Tools for Schools" Guidance implementation began in 1997. For FY 2004, the program projects
                an additional 3,000 schools will implement the guidance and seeks to obtain implementation commitments from 15 of the 100 largest
                school districts in the U.S. with  an average of 140,000 per district.  (Additional, not cumulative since there is not an established
                baseline for good IAQ practices in schools.)

                * According to the U.S. Department of Education National Center for Education Statistics, between 1994 and 2002, 7,000 new schools
                were  built.  For the revised strategic  plan  we increased our baseline to incorporate the increase.  Our FY 2008 strategic goal
                incorporates the additional school.

Healthier Indoor Air in Workplaces

In 2005          150,000 additional office workers will experience improved air quality  in their workplaces.

Performance Measures                               FY2000    FY2001     FY2002     FY2003     FY2004    FY2005
                                                    Actuals     Actuals      Actuals      Actuals      Pres. Bud.   Pres. Bud.
150,000  additional  office workers will   experience                                                               150,000      People
improved air quality in their workplaces.



Baseline:        There are approximately 750,000 office buildings with 12 billion square feet. The mean worker density is 1 office worker per 500
                square feet. Therefore, a total of 24 million office workers work in office buildings. Our 2005 goal is to get 5% of all office buildings
                to adopt  good IAQ measures which translates into 1.2 million office  workers (cumulative from 1994).  Our 2008 goal is to get an



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                                        Environmental Protection Agency

                       FY 2005 Annual Performance Plan and Congressional Justification

                                            6-Year Performance Data
                                    Annual Performance Goals and Measures

              additional 3% of all office buildings to adopt good LAQ measures which translates to 720,000 office workers (cumulative at 240,000
              per year).

OBJECTIVE: REDUCE GREENHOUSE GAS INTENSITY

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.  (An additional 75  MMTCE to
result from the sustained growth in the climate programs are reflected in the Administration's business-as-usual projection for
greenhouse gas intensity improvement.)

Reduce Greenhouse Gas Emissions

In 2005        Greenhouse gas emissions will be reduced from projected levels by approximately 90 MMTCE per year through EPA partnerships
              with businesses, schools, state and local governments, and other organizations.

In 2004        Greenhouse gas emissions will be reduced from projected levels by approximately 81 MMTCE per year through EPA partnerships
              with businesses, schools, state and local governments, and other organizations.

In 2003        End of year FY 2003 data will be available hi mid-2004 to verify that Greenhouse gas emissions will be reduced from projected levels
              by approximately 72.2 MMTCE per year through EPA partnerships with businesses, schools, state and local governments, and other
              organizations.

In 2002        Greenhouse gas emissions were reduced from projected levels by 71.0 MMTCE per year through EPA partnerships with businesses,
              schools, state and local governments, and other organizations.

In 2001        EPA's Climate Protection Programs reduced greenhouse gas emissions by 65 million metric tons of carbon equivalent in 2001. EPA
              estimates that due to investments already made through EPA's technology deployment programs, greenhouse gas emissions will be
              reduced by more than 500 MMTCE through 2012.

In 2000        Greenhouse gas emissions were reduced from projected levels by more than 59\3 MMTCE per year through EPA partnerships with
              businesses, schools, State and local governments, and other organizations thereby offsetting growth in GHG emissions above 1990
              level by about 20%.
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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures
Performance Measures                               FY2000    FY2001    FY2002
                                                   Actuals     Actuals     Actuals
Annual Greenhouse Gas Reductions - All EPA Programs    59,3        65          71

Greenhouse Gas Reductions from EPA's Buildings Sector   15.2        16.6        18
Programs (ENERGY STAR)

Greenhouse  Gas Reductions  from  EPA's  Industrial   5.5         5.8         6.7
Efficiency/Waste Management Programs
Greenhouse Gas  Reductions  from EPA's    Industrial   13.8        16          17.0
Methane Outreach Programs
Greenhouse Gas  Reductions  from EPA's    Industrial   21.4        22.8        24.9
HFC/PFC Programs
Greenhouse Gas Reductions from EPA's Transportation   1.7         1.9         2.4
Programs
                       FY 2003
                       Actuals
                       Data Lag

                       Data Lag
                        FY 2004     FY 2005
                        Pres. Bud.   Pres. Bud.
                        81.0         90.2
                        21.4
Data Lag
Data Lag
Data Lag
Data Lag
7.3
18.1
29.6
2.6
                        23.8

                        8

                        19.1

                        34.4

                        2.9
            MMTCE

            MMTCE


            MMTCE

            MMTCE


            MMTCE


            MMTCE
Greenhouse Gas Reductions from EPA's State and Local   1.7
Programs
1.9
2.0
Data Lag    2.0
2.0
MMTCE
Baseline:       The baseline for evaluating program performance is a projection of U.S. greenhouse gas emissions in the absence of the U.S. climate
               change programs. The baseline was developed as part of an interagency evaluation of the U.S.  climate change programs in 2002,
               which built on similar baseline forecasts developed in 1997 and 1993. Baseline data for carbon emissions related to energy use is
               based on data from the Energy Information Agency (EIA) and from EPA's Integrated Planning Model of the U.S.  electric power
               sector. Baseline data for non-carbon dioxide (CO2) emissions, including nitrous oxide and other high global warming potential gases
               are   maintained  by   EPA.  Baseline  information is  discussed  at  length   in  the  U.S.  Climate  Action  Report 2002
               (www.epa,gov/globalwarming/publications/car/index.html), which provides  a discussion of differences in assumptions between the
               1997 baseline and the 2002 update, including which portion of energy efficiency programs are  included in the estimates. EPA
               develops the non-CO2 emissions baselines and projections using information from partners and other  sources.  EPA continues to
               develop annual inventories as well as update methodologies as new information becomes available.
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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

Reduce Energy Consumption

In 2005        Reduce energy consumption from projected levels by more than 120 billion kilowatt hours, contributing to over $8,5 billion in energy
               savings to consumers and businesses.

In 2004        Reduce energy consumption from projected levels by more than 110 billion kilowatt hours, contributing to over $7.5 billion in energy
               savings to consumers and businesses.

In 2003        End of year FY 2003 data will be available in late 2004 to verify the reduction in energy consumption from projected levels by more
               than 95 billion kilowatt hours, contributing to over $6.5 billion in energy savings to consumers and businesses.

In 2002        Reduced energy consumption by 100 billion kilowatt hours, contributing to over $10 billion in energy savings to consumers and
               businesses.

In 2001        EPA's Climate Protection Programs reduced energy use by 84 billion kilowatt hours in 2001.

In 2000        Reduced energy consumption from projected levels by about 74 billion kilowatt hours, resulting in over $8 billion in energy savings to
               consumers and businesses that participate in EPA's climate change programs.

Performance Measures                               FY2000    FY2001     FY2002     FY2003    FY2004    FY2005
                                                    Actuals      Actuals      Actuals     Actuals     Pres. Bud.  Pres. Bud.
Annual Energy Savings - All EPA Programs               74          84          100         Data Lag    110         120         Billion kWh



Baseline:       The baseline for evaluating program performance is a projection of U.S. greenhouse gas emissions in the absence of the U.S. climate
               change programs. The  baseline was developed as  part of an interagency evaluation of the U.S. climate change programs in 2002,
               which built on similar  baseline forecasts  developed in 1997  and 1993. Baseline data for carbon emissions related  to energy use is
               based on data from the Energy Information Agency (EIA) and from EPA's Integrated Planning Model of the U.S. electric power
               sector. Baseline data for non-carbon dioxide (CO2) emissions, including nitrous oxide and other high global warming potential gases
               are  maintained  by  EPA.  Baseline  information  is  discussed  at   length  in  the  U.S.  Climate  Action  Report  2002
               (www.epa.gov/globalwarming/publications/car/index.html), which provides a discussion of differences in  assumptions between the
               1997 baseline  and the 2002 update, including which portion of energy efficiency programs are  included in the estimates. EPA
               develops the non-C02 emissions baselines and projections using information from partners and other sources.  EPA continues to
               develop annual inventories as well as update methodologies as new information becomes available.
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                                       Environmental Protection Agency

                      FY 2005 Annual Performance Plan and Congressional Justification

                                           6-Year Performance Data
                                   Annual Performance Goals and Measures

OBJECTIVE: PROTECT THE OZONE LAYER

By 2010, through worldwide action, ozone concentrations 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.

Restrict Domestic Consumption of Class II HCFCs

In 2005        Restrict domestic annual consumption of class II HCFCs below 9,906 ODP-weighted metric tonnes (ODP MTs) and restrict domestic
              exempted production and import of newly produced class I CFCs and halons below 10,000 ODP MTs.

In 2004        Restrict domestic annual consumption of class II HCFCs below 9,906 ODP-weighted metric tonnes (ODP MTs) and restrict domestic
              exempted production and import of newly produced class I CFCs and halons below 10,000 ODP MTs.

In 2003        End of year FY 2003 data will be available in late 2004 to verify restriction of domestic consumption of class II HCFCs below 9,906
              ODP-weighted metric tonnes (ODP MTs) and  restriction of domestic exempted production and import of newly produced  class I
              CFCs and halons below 10,000 ODP MTs.

In 2002        End of year FY 2002 data will be available in late 2004 to verify restriction of domestic consumption of class II HCFCs below  15,240
              ODP-weighted metric tonnes (ODP MTs) and restrict domestic exempted production and import of newly produced class I CFCs and
              halons below 60,000 ODP MTs.

In 2001        Restricted domestic consumption of class II HCFCs below 15,240 ODP-weighted metric tonnes  (ODP MTs) and restricted domestic
              exempted production and import of newly produced class I CFCs and halons below 60,000 ODP MTs.

In 2000        Domestic consumption of class II HCFCs was restricted below 15,240 ODP-weighted metric tonnes  (ODP MTs) and domestic
              exempted production and import of newly produced class I CFCs and halons was restricted below 60,000 ODP MTs.

Performance Measures                            FY2000    FY2001    FY2002    FY2003     FY2004    FY2005
                                               Actuals     Actuals     Actuals     Actuals      Pres. Bud.   Pres. Bud.
Domestic Consumption of Class II HCFCs              13,180      12,087      Data Lag    Data Lag     <9,906     <9,906     ODP MTs
Domestic Exempted  Production and Import  of Newly  462        3,062       Data Lag    Data Lag     <10,000    <10,000     ODP MTs
Produced Class ICFC s and Halons
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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                             6-Year Performance Data
                                     Annual Performance Goals and Measures


Baseline:        The base of comparison for assessing progress on the 2005 annual performance goal is the domestic consumption cap of class II
               HCFCs as set by the Parties to the Montreal Protocol.  Each Ozone Depleting Substance (ODS) is weighted based on the damage it
               does to the stratospheric ozone - this is its ozone-depletion potential (ODP). Beginning on January 1,1996, the cap was set at the sum
               of 2.8 percent of the  domestic OOP-weighted consumption of CFCs in 1989 plus the ODP-weighted level of HCFCs in 1989.
               Consumption equals production plus import minus export.

 OBJECTIVE: RADIATION

Through 2008, working with partners, minimize unnecessary releases of radiation and be prepared to  minimize impacts to
human health and the environment should unwanted releases occur.

Ensure WIPP Safety

In 2005         Certify that 40,000 55-gallon drums of radioactive waste (containing approximately 120,000 curies) shipped by DOE to the Waste
               Isolation Pilot Plant are permanently disposed of safely and according to EPA standards.

In 2004         Certify that 36,000 55-gallon drums of radioactive waste (containing approximately  108,000 curies) shipped by DOE to the Waste
               Isolation Pilot Plant are permanently disposed of safely and according to EPA standards.

In 2003         36,041 drums (55 gallon) of radioactive waste shipped by DOE to the Waste Isolation Pilot Plant were permanently disposed of safely
               and according to EPA standards.

In 2002         EPA certified that 22,800 55 gallon drums of radioactive waste (containing approximately 68,400 curies) shipped by DOE to the
               Waste Isolation Pilot Plant were permanently disposed of safely and according to EPA standards.

Performance Measures                             FY2000     FY2001    FY2002     FY2003    FY2004    FY2005
                                                 Actuals     Actuals     Actuals      Actuals     Pres. Bud.   Pres. Bud.
Number of 55-Gallon Drums of Radioactive Waste                          22,800       36,041      36,000      40,000      Drums
Disposed of According to EPA Standards



Baseline:        The Waste Isolation Pilot Plant (WIPP) near Carlsbad, NM was opened in May 1999 to accept radioactive transuranic waste.  By the
               end of FY 2003, approximately 73,000 (cumulative) 55 gallon drums will be safely disposed.  In FY 2005, EPA expects that DOE will
               ship an additional 40,000 55- gallon drums of waste.  Through FY 2004, EPA expects  that DOE will  have shipped safely and

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures

               according to EPA standards, approximately 13% of the planned waste volume, based on disposal of 860,000 drums over the next 40
               years. Number of drums shipped to the WIPP facility on an annual basis is dependent on DOE priorities and funding.  EPA volume
               estimates are based on projecting the average shipment volumes over 40 years with an initial start up.

Build National Radiation Monitoring System

In 2005         EPA will purchase 60 additional state of the art monitoring units and im'tiatie deployment to sites selected based on population and
               geographical coverage. All old sampling will be replaced and population coverage will be expanded to 60%.

In 2004         EPA will purchase 60 state of the art radiation monitoring units thereby increasing EPA radiation monitoring capacity and population
               coverage from 37% of the contiguous U.S. population in FY 2002 to 50% in FY 2004.

Performance Measures                              FY2000     FY2001     FY2002     FY2003     FY2004     FY200S
                                                   Actuals     Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
Purchase and Deploy State-of-the Art Monitoring Units                                                     60          60          Units
                                                                                                                           Purchased


Baseline:       The current fixed monitoring system, part of the Environmental Radiation Ambient Monitoring System, was developed in the 1960s
               for the purpose of monitoring radioactive fallout from nuclear weapons testing. The system currently consists of 52 old, low-tech air
               particulate samplers which provide coverage in cities which represent  approximately 24% of the population.  By 2005, EPA will
               upgrade the old system by purchasing 120 state-of-the-art units which wil be strategically located to cover approximatley 60% of the
               population. The current system's air samplers will be retired from service due to age, although some may be retained for emergency
               use.

Homeland Security - Readiness & Response

In 2005         Verify that 50 percent of EPA's Radiological Emergency Response Team (RERT) members meet scenario-based response criteria.

Performance Measures                              FY2000     FY2001     FY2002     FY2003     FY2004     FY2005
                                                   Actuals     Actuals     Actuals.     Actuals     Pres. Bud.   Pres. Bud.
Percentage of EPA RERT members that meet  scenario-                                                              50          Percent
based criteria
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                                        Environmental Protection Agency

                       FY 2005 Annual Performance Plan and Congressional Justification

                                             6-Year Performance Data
                                    Annual Performance Goals and Measures

Baseline:       Currently, EPA assesses RERT readiness based on the ability of the RERT to: (1) provide effective field response, as defined today;
              (2) support coordination centers; and 3) provide analytical capabilities throughout as needed to support a single small-to-medium
              scale incident.  These evaluation criteria will be reevaluated and revised in response to the  Department of Homeland Security
              development of criteria for the Nuclear Incident Response Team established under the Homeland Security Act of 2002, which
              includes EPA RERT assets.

OBJECTIVE: ENHANCE SCIENCE AND RESEARCH

Through 2010, provide and apply sound science to support EPA's goal of clean air by conducting leading-edge research and
developing a better understanding and characterization of environmental outcomes under Goal 1.

Clean Automotive Technology

In 2005        Transfer hybrid powertrain components, originally developed for passenger car applications, to meet size, performance, durability, and
              towing requirements of Sport Utility Vehicle and urban delivery vehicle applications with an average fuel economy improvement of
              30% over the baseline.

In 2004        Transfer hybrid powertrain components, originally developed for passenger car applications, to meet size, performance, durability, and
              towing requirements of Sport Utility Vehicle and urban delivery vehicle applications with an average fuel economy improvement of
              25% over the baseline.

Performance Measures                             FY2000    FY2001    FY2002     FY2003    FY2004    FY2005
                                                 Actuals    Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
Fuel Economy of EPA-Developed SUV Hybrid Vehicle                                                 25.2         26.3        MPG
over EPA Driving Cycles Tested



Baseline:       The average fuel economy of all SUVs sold in the US hi 2001 is 20.2 mpg. Values for 2002,2003, and 2004 represent 15%, 20%, and
              25% improvements over this baseline, respectively.  The long-term target is to demonstrate a practical and affordable powertrain that
              is 30% more efficient by 2005, and 100% more efficient by 2010.
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                                          Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

Research

PM Measurement Research

In 2005         By FY 2005, deliver and transfer improved receptor models and data on chemical compounds emitted from sources so that, by 2006,
               EP A's Office of Air and Radiation and the states have the necessary new data and tools to predict, measure, and reduce ambient PM
               and PM emissions to attain the existing PM National Ambient Air Quality Standards (NAAQS) for the protection of public health.

Performance Measures                               FY2000     FY2001     FY2002     FY2003     FY2004     FY200S
                                                    Actuals     Actuals     Actuals     Actuals      Pres. Bud.   Pres. Bud.
Improved  receptor  models  and   data  on  chemical                                                                09/30/05     models/data
compounds emitted from sources



Baseline:       Following designation of non-attainment areas for the Particulate Matter National Ambient Air Quality Standards in 2004 and 2005,
               states will need to immediately begin developing State Implementation Plans (SIPs). SIPs incorporate source emission reduction rules
               that once implemented  lead to  cleaner air and standards attainment.  They are due to EPA three years  after designation.   SIP
               development is predicated on the  availability of recent and credible information on source emission characteristics and receptor-
               oriented models that can identify sources contributing to locally observed PM concentrations based on their chemical signatures. A
               next update (FY 2005) of these constantly improving models and the latest in source signatures will be produced to help states with
               their SIPs as part of a weight of  evidence approach that use  these and chemical transport modeling to tag  specific sources with
               reduction targets.

               Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
               relevance, quality, and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.
               These evaluations  will  include an examination of a program's design to determine the appropriateness  of a  program's short-,
               intermediate-, and long-term goals and its strategy for attaining these.  Reviewers will also qualitatively determine whether EPA has
               been successful in meeting its annual and long-term commitments for research. Recommendations and results from these reviews will
               improve the design and management of EPA  research programs and help  to  measure their progress under the Government
               Performance and Results Act (GPRA).
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                                               Environmental Protection Agency

                              FY 2005 Annual Performance Plan and Congressional Justification

                                                   6-Year Performance Data
                                           Annual Performance Goals and Measures

GOAL: CLEAN AND SAFE WATER

Ensure  drinking water is  safe.  Restore and maintain oceans, watersheds, and their aquatic ecosystems to  protect human health,
support economic and recreational activities, and provide healthy habitat for fish, plants, and wildlife,


       OBJECTIVE: PROTECT HUMAN HEALTH

       Protect human health by reducing exposure to contaminants in drinking water (including protecting source waters), in fish and
       shellfish, and in recreational waters.

       Safe Drinking Water

       In 2005         75% of community water systems will provide drinking water that meets health-based standards with a compliance date of January
                      2002 or later.

       In 2005         75% of the population served by community water systems will receive drinking water that meets health-based standards with a
                      compliance date of January 2002 or later.

       In 2005         90% of the population served by community water systems in Indian country will receive drinking water that meets all applicable
                      health-based drinking water standards.

       In 2005         93% of the population served by community water systems will receive drinking water that meets all applicable health-based drinking
                      water standards through effective treatment and source water protection.

       In 2005         94% of the population served by community water systems will receive drinking water that meets health-based standards with which
                      systems need to comply as of December 2001.

       In 2005         94% of community water systems will provide drinking water that meets health-based standards with which systems need to comply
                      as of December 2001.

       In 2004         85 percent of the  population served by community water systems will receive drinking water meeting health-based standards
                      promulgated in or after 1998.
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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                      Annual Performance Goals and Measures

In 2004         92% of the population served by community water systems will receive drinking water meeting all health-based standards in effect as
               of 1994, up from 83% in 1994.

In 2003         End of year FY 2003 data will be available in 2004 to verify 85 percent of the population served by community water systems
               received drinking water meeting health-based standards promulgated in or after 1998.

In 2003         End of year FY 2003 data will be available in 2004 to verify 92% of the population served by community water systems received
               drinking water meeting all health-based standards in effect as of 1994, up from 83% in 1994.

In 2002         91% of the population served by community water systems received drinking  water meeting all health-based standards in effect as of
               1994.

In 2002         Final FY 02 numbers were not available until June 2003.

In 2001         91 percent of the population served by water systems received drinking water meeting all health-based standards that were in effect as
               of 1994.

In 2000         91% of the population served by community drinking water systems received drinking water meeting all health-based standards that
               were in effect as of 1994, up from 83% in 1994.
Performance Measures                              FY 2000
                                                   Actuals
Percent  of population served  by community drinking  91
water systems with no violations during the year of any
Federally enforceable health-based standards that were in
place by 1994.
Population served by community water systems providing
drinking   water   meeting   health-based   standards
promulgated in or after 1998.

Population  served  by community  water systems that
receive drinking water that meets health-based standards
with which systems need to comply as of December 2001

Population  served  by community  water systems that
receive drinking water that meets health-based standards
FY2001     FY2002     FY2003     FY2004     FY2005
Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
91          91          91          92
            N/A        96%        85
                                                94
                                                75
% Population




% Population


% Population



% Population
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                                          Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

Performance Measures                               FY2000     FY2001     FY2002     FY2003    FY2004     FY2005
                                                    Actuals     Actuals     Actuals     Actuals     Pres. Bud.   Pres, Bud.
with a compliance date of January 2002 or later

Percentage  of  community  water  systems that provide                                                                94          %CWSs
drinking water that  meets  health-based  standards  with
which systems need to comply as of December 2001

Percentage  of  community  water  systems that provide                                                                75          % CWSs
drinking water that meets health-based standards with a
compliance date of January 2002 or later
Percent of the population served  by community water                                                                90          % Population
systems in Indian country that receive drinking water that
meets all applicable health-based drinking water standards
% of population served by community water systems that                                                                93          % population
receive drinking water that meets all applicable  health-
based  drinking  water  standards  through  effective
treatment and source water protection



Baseline:       In 1998, 85% of the population that was served by community water systems and 96% of the population served by non-community,
               non-transient drinking water systems received drinking water for which no violations of Federally enforceable health standards had
               occurred during the year.  Year-to-year performance is expected to change as new standards take effectCovered standards include:
               Stage  1  disinfection by-products/interim enhanced  surface  water treatment rule/long-term  enhanced  surface water treatment
               rule/arsenic.

Source Water Protection

In 2005         20% of source water areas for community water systems will achieve minimized risk to public health.

In 2004         Advance States' efforts with community water systems to protect their surface and ground water resources that are sources of drinking
               water supplies.

In 2003    '    End of year FY 2003 data will be available in 2004 to verify 39,000 community  water  systems (75% of the nation's  service
               population) will  have completed source water  assessments and 2,600 of these  (10% of the nation's service population)  will be
               implementing source water protection programs.

                                                            24

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures

Number of community water systems and percent  of
population served by those CWSs that are implementing
source water protection programs.
Percent  of source  water areas  for  community  water
systems that achieve minimized risk to public health
FY2000     FY2001     FY2002    FY2003     FY2004     FY2005
Actuals     Actuals     Actuals     Actuals      Pres. Bud.   Pres. Bud.
                                    6,570/25%   25%/7,500               % pop/systems
                                                             20
% Areas
Baseline:       EPA defines "achieve minimized risk" as substantial implementation of source water protection actions, as determined by a State's
               source water protection strategy.  Approximately 268 million people are estimated to be served by Community Water Systems
               (CWSs) in 2002.

River/Lake Assessments for Fish Consumption

In 2005         80% of the shellfish growing acres monitored by states are approved or conditionally approved for use.

In 2005         At least 1% of the water miles/acres identified by states or tribes as having a fish consumption advisory in 2002 will have improved
               water and sediment quality so that increased consumption offish and shellfish is allowed.

In 2004         Reduce consumption of contaminated fish by increasing the information available to States, Tribes, local governments, citizens, and
               decision-makers.

In 2003         Reduced consumption of contaminated fish by increasing the information available to States, Tribes, local governments, citizens, and
               decision-makers.

In 2002         14% of the nation's river miles and 28% of nation's lake acres have been assessed to determine if they contain fish and shellfish that
               should not be eaten or should be eaten in only limited quantities.

In 2001         9% of the nation's river miles  and 23% of nation's lake acres have been assessed to determine if they contain fish and shellfish that
               should not be eaten or should be eaten in only limited quantities.

In 2000         7% of the nation's river miles and 16% of the nation's lake acres have been assessed to determine if they contain fish and shellfish that
               should not be eaten or should be eaten in only limited quantities.
                                                            25

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures

Lake acres assessed for the need for fish advisories and
compilation  of state-issued fish consumption advisory
methodologies, (cumulative)

River miles assessed for  the need for fish consumption   7
advisories & compilation of state-issued fish consumption
advisory methodologies, (cumulative)
Percent of water miles/acres, identified by states or tribes
as having fish consumption advisories  in 2002, where
increased consumption offish is allowed.
Percent of the shellfish growing acres monitored by states
that are approved or conditionally approved for use
FY 2000
Actuals
16
FY2001
Actuals
23
FY 2002
Actuals
28
                        14%
FY2003
Actuals
33
                        15
FY 2004
Pres. Bud.
35
                        16%
FY 2005
Pres. Bud.
                                                             80
            % Lake acres
                                    % River miles
                                                                         % Miles/Acres
                                                             % Areas
Baseline:       In 1999, 7% of the Nation's rivers and 15% of the Nation's lakes were assessed to determine if they contained fish that should not be
               eaten or should be eaten in only limited quantities.  In September 1999, 25 states/tribes are monitoring and conducting assessments
               based on the national guidance to establish nationally consistent fish advisories. In the 2000 Report to Congress on the National Water
               Quality Inventory, 69% of assessed river and stream miles; 63% of assessed lake, reservoir, and pond acres; and 53% of assessed
               estuarie square miles supported their designated use for fish consumption.  For shell fish consumption, 77% of assessed estuary square
               miles met this designated use.

Increase Information on Beaches

In 2005         Coastal and Great Lakes beaches monitored by State beach safety programs will be open and safe for swimming in over 94% of the
               days of the beach season.

In 2005         Restore water quality to allow swimming in not less than 2% of the stream miles and  lake acres identified by states in 2000 as having
               water quality unsafe for swimming.

In 2004         Reduce human exposure to contaminated recreation waters by increasing the information available to the public and decision-makers.
                                                            26

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures

In 2003         Reduced human exposure to contaminated recreation waters by increasing the information available to the public and decision-
               makers.

In 2002         Reduced exposure to contaminated recreation waters by providing monitoring and closure data on 2,455 beaches to the public and
               decision-makers.

In 2001         Reduce exposure to contaminated recreation waters by providing information on 2,354 beaches for which monitoring and closure data
               is available to the public and decision-makers.

In 2000         1,981 beaches had monitoring and closure data including 150 digitized maps, available to the public through EPA's website.

Performance Measures                               FY2000     FY2001     FY2002     FY2003     FY2004     FY2005
                                                   Actuals     Actuals      Actuals     Actuals      Pres. Bud.   Pres. Bud.
Beaches  for  which monitoring and  closure data is  1,981        2,354       2,445       2,823        2,823                    Beaches
available       to       the        public       at
http://www.epa.gov/waterscience/beaches/. (cumulative)
Restore water quality to allow swimming in stream miles                                                              2           % Miles/Acres
and lake acres identified by states
Days  (of beach season)  that coastal and Great  Lakes                                                              94          %
beaches  monitored by State  beach safety programs are                                                                          Days/Season
open and safe for swimming.

Baseline:       By the end of FY 1999,33 states had responded to EPA's first annual survey on state and local beach monitoring and closure practices
               and EPA made available to the public via the internet. An average of 9 recreational contact waterborne disease outbreaks reported per
               year by the Centers for Disease Control for the years 1994-1998, based on data housed in EPA/ORD internal database.  In 2002,
               monitored beaches were opened 94% of the days during the beach season.

OBJECTIVE: PROTECT WATER QUALITY

Protect the quality of rivers, lakes, and streams on a watershed basis and protect coastal and ocean waters.

Watershed Protection

In 2005         500 of the Nation's watersheds have water quality standards met hi at least 80% of the assessed water segments.

                                                           27

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures
In 2005        Water quality standards are fully attained in over 25% of miles/acres of waters by 2012, with an interim milestone of restoring 2% of
               these waters - identified in 2000 as not attaining standards - by 2005.

In 2004        By FY 2005, Water quality will improve on a watershed basis such that 625 of the Nation's 2,262 watersheds will have greater than 80
               percent of assessed waters meeting all water quality standards, up from 500 watersheds in 1998.

In 2003        End of year FY 2003 data will be available in 2005 to verify if FY 2003, Water quality has improved on a watershed basis such that
               600 of the Nation's 2,262 watersheds will have greater than 80 percent of assessed waters meeting all water quality standards, up from
               500 watersheds in 1998.

In 2002        This measure reflects states' biennial reporting under CWA 305(b), and is not intended to be reported against again until the FY2003
               reporting cycle.

In 2001        Water quality improved on a watershed basis such that 510 of the Nation's 2,262 watersheds will have greater than 80 percent of
               assessed waters meeting all water quality standards, up from 500 watersheds in 1998.
Performance Measures

Watersheds that have greater than 80% of assessed waters
meeting all water quality standards.
Waterbodies (river miles and lake acres) identified in
2000 as not attaining Water quality standards, are fully
attained.
FY2000    FY2001     FY2002     FY2003     FY2004     FY2005
Actuals     Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
            510          510         453         500 (FY      500
                         (FYOO)                  05)
8-digitHUCs


% Miles/Acres
Baseline:       As of 2002 state reports 453 watersheds had met the criteria that greater than 80% of assessed waters met all water quality standards.
               For a watershed to be counted toward this goal, at least 25% of the segments in the watershed must be assessed within the past 4 years
               consistent with assessment guidelines  developed pursuant  to section 305(b) of the Clean Water Act.  In 2002, 0% of the 255,408
               miles/and 6,803,419 acres of waters identified on 1998/2000 lists of impaired waters developed by States and approved by EPA under
               section 303(d) of the Clean Water Act
                                                             28

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Coastal Aquatic Conditions

In 2005
In 2005
Improve ratings reported on the national "good/fair/poor" scale of the National Coastal Condition Report for: coastal wetlands loss by
at least 0.1 point; contamination of sediments in coastal waters by at least 0.1 point; benthic quality by at least 0.1 point; & eutrophic
condition by at least 0.1 point

Scores for overall aquatic system health of coastal waters nationally, and in each coastal region, is improved on the "good/fair/poor"
scale of the National Coastal Condition Report by at least 0.1 point
Performance Measures

Score for overall aquatic system health of coastal waters
nationally,  and in  each coastal region,  is  improved
(cumulative).

Maintain water clarity and dissolved oxygen in coastal
waters at the national levels reported in the 2002 National
Coastal Condition Report

Improve ratings reported on the national "good/fair/poor"
scale of the National Coastal Condition Report for coastal
wetlands loss

Improve ratings reported on the national "good/fair/poor"
scale  of the  National  Coastal Condition Report  for
contamination of sediments in coastal waters

Improve ratings reported on the national "good/fair/poor"
scale of the National Coastal Condition Report for benthic
quality

Improve ratings reported on the national "good/fair/poor"
scale  of the  National  Coastal Condition Report  for
eutrophic condition
                                     FY2000     FY2001    FY2002     FY2003     FY2004    FY2005
                                     Actuals     Actuals     Actuals      Actuals     Pres. Bud.   Pres. Bud.
                                                                                                  2.5          Scale score
                                                                                                  4.3/4.5
                                                                                                   1.5
                                                                                                   1.4
                                                                                                   1.5
                                                                                                   1.8
Scale score
Scale score
Scale score
Scale score
Scale score
Baseline:        National rating of "fair/poor" or 2.4 where the rating is based on a 5-point system where 1 is poor and 5 is good and is expressed as an
                aerially weighted mean of regional scores using the National Coastal Condition Report indicators [i.e., water clarity, dissolved oxygen,
                                                            29

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                                           Environmental Protection Agency


                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures

                coastal  wetlands loss, eutrophic conditions, sediment contamination, benthic  health,  and fish tissue contamination].  The 2002
                National Coastal Condition Report indicated 4.3 for water clarity and 4.5 for dissolved oxygen, 1.4 for coastal wetlands loss; 1.3 for
                contamination of sediments in coastal waters; 1.4 for benthic quality; & 1.7 for eutrophic condition.

State/Tribal Water Quality Standards

In 2005          In coordination with other federal.partners reduce, by 11%, households on tribal lands lacking access to basic sanitation.

In 2005          Water quality in Indian country will be improved  at not less man 35 monitoring stations in tribal waters for which baseline data are
                available (i.e., show at least a 10% improvement for each of four key parameters: total nitrogen, total phosphorus, dissolved oxygen,
                and fecal coliforms.)

In 2004          Assure  that States  and Tribes have effective, up-to-date water quality standards programs adopted in accordance  with the Water
                Quality Standards regulation and the Water Quality Standards program priorities.

In 2003          Assured that States and  Tribes had effective, up-to-date water quality standards programs adopted in accordance  with the Water
                Quality Standards regulation and the Water Quality Standards program priorities.

In 2002          Assure that 25 States and 22 Tribes have effective, up-to-date water quality standards programs adopted in accordance with the Water
                Quality Standards regulation and the Water Quality Standards program priorities.

In 2001          21  States and 19 Tribes  have effective, up-to-date water quality standards programs adopted in accordance with the Water Quality
                Standards regulation and  the Water Quality Standards program priorities.

In 2000          35  States and 16 Tribes  have effective, up-to-date water quality standards programs adopted in accordance with the Water Quality
                Standards regulation and  the Water Quality Standards program priorities.

Performance Measures                                FY2000     FY2001     FY2002      FY2003     FY2004     FY2005
                                                     Actuals     Actuals     Actuals      Actuals     Pres. Bud.   Pres. Bud.
States with new  or revised water quality standards that              21          25           28          20                       States
EPA has  reviewed  and approved  or  disapproved and
promulgated federal replacement standards.

Tribes with water quality standards adopted and approved  16          19          22           23          33                       Tribes
(cumulative).

Number of monitoring stations (for which baseline data                                                                35           Stations


                                                             30

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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                             6-Year Performance Data
                                     Annual Performance Goals and Measures

Performance Measures                              FY2000    FY2001     FY2002    FY2003    FY2004    FY2005
                                                  Actuals     Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
on 4 key parameters are available) where water quality is
improved.

Number of households on tribal lands lacking access  to                                                             11          % Households
basic sanitation.


Baseline:        The performance measure of state submissions (above) thus represents a "rolling annual total" of updated standards acted upon by
               EPA, and so are neither cumulative nor strictly incremental.  EPA must review and approve or disapprove state revsisions to water
               quality standards withing 60-90 days  after receiving the state's package.  In 2002, there will be four key parameters available at 900
               sampling stations in Indian country.  In 2002, Indian Health Service indicates that 71,000 households on Tribal lands lack access to
               basic sanitation.

OBJECTIVE: ENHANCE SCIENCE AND  RESEARCH

Provide and apply a sound scientific foundation to EPA's goal of clean and safe water by conducting leading-edge research and
developing a better understanding and characterization of the environmental outcomes under Goal 2.

Research

Scientific Rationale for Surface Water Criteria

In 2005         Provide methods for developing water quality criteria so that, by 2008, approaches and methods are available to States and Tribes for
               their use in developing and applying criteria for habitat alteration, nutrients, suspended and bedded sediments, pathogens and toxic
               chemicals that will  support designated uses for aquatic ecosystems and increase the scientific basis for listing and delisting impaired
               water bodies under Section 303(d) of the Clean Water Act.

Performance Measures                              FY2000    FY2001     FY2002    FY2003    FY2004    FY2005
                                                  Actuals     Actuals      Actuals     Actuals    Pres. Bud.   Pres. Bud.
Methods for developing water quality criteria based on                                                             09/30/05     methods
population-level risks of multiple stressors to aquatic life
and aquatic-dependent wildlife.


                                                          31

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

Baseline:       State, Tribal, and EPA programs that assess, maintain, and restore water quality are all dependent upon the ability to define water
               quality standards that, when met, are protective of the designated and desired use of streams, lakes, and estuaries. The scientific bases
               for such standards are water quality criteria that relate biological outcomes  (e.g.,  fish populations, aquatic wildlife communities,
               threatened and endangered species) to measurable water quality parameters  (e.g.,  nutrients, suspended and embedded sediments,
               chemical concentrations).  Relatively recent and  Congressionally-mandated studies by the National Research Council  call for
               continued and more targeted scientific studies on water quality criteria that reflect observed environmental variations and that reflect
               the multiple influence of habitat alteration, regional and watershed conditions, and appropriate designated uses. Accordingly, EPA
               has modified its longstanding research on water quality criteria to address these issues.  Scientific outputs from this research can be
               integrated  into EPA technical  guidance to the States and Tribes.  Adoption and deployment of new criteria developed with the
               assistance  of the new methods and approaches will  improve the cost-effectiveness of TMDL's and related restoration efforts.
               Beginning in FY 2005, regular evaluations  by independent and external panels will provide reviews of EPA research programs'
               relevance,  quality, and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.
               Reviewers will also qualitatively determine whether EPA has been successful  in meeting its annual and long-term commitments for
               research.  Recommendations and results from these reviews will improve the design and management of EPA research programs and
               help to measure their progress under the Government Performance and Results Act (GPRA).
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                                               Environmental Protection Agency

                              FY 2005 Annual Performance Plan and Congressional Justification


                                                   6-Year Performance Data
                                           Annual Performance Goals and Measures

GOAL: LAND PRESERVATION AND RESTORATION

Preserve and restore the land by using innovative waste management practices and cleaning up contaminated properties to reduce risks
posed by releases of harmful substances.

       OBJECTIVE: PRESERVE LAND

       By 2008, reduce adverse effects to land by reducing waste generation, increasing recycling, and ensuring proper management
       of waste and petroleum products at facilities in ways that prevent releases.

       Municipal Solid Waste Source Reduction

       In 2005        Divert an additional 1% (for a cumulative total of 35% or 81 million tons) of municipal solid waste from land filling and combustion,
                     and maintain per capita generation of RCRA municipal solid waste at 4.5 pounds per day.

       In 2004        Divert an additional 1% (for a cumulative total of 34% or 79 million tons) of municipal solid waste from land filling and combustion,
                     and maintain per capita generation of RCRA municipal solid waste at 4.5 pounds per day.

       In 2003        End of year FY 2003 data will be available in December 2005 to verify that an additional 1% (for a cumulative total of 32% or 74
                     million tons) of municipal solid waste from land filling and combustion, and maintain per capita generation of RCRA municipal solid
                     waste at 4.5 pounds per day was diverted.

       In 2002        FY 2002 data is currently not available for the diversion of municipal solid waste from land filling and combustion or maintaining per
                     capita generation of RCRA municipal solid waste. Analysis of FY 2002 data is anticipated by December 2004.

      , In 2001        29.2% or 68 million tons of municipal sold waste was diverted from land filling and combustion, and the per capita generation
                     decreased to 4.4 pounds per day.

       In 2000        29.2% or 68 million tons of municipal solid waste was diverted from land filling and combustion, and the per capita generation
                     decreased to 4.4 pounds per day.
                                                               33

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures

Millions of tons of municipal solid waste diverted.


Daily per capita generation of municipal solid waste.
FY2000
Actuals
68


4.5


FY 2001
Actuals
68


4.4


FY 2002
Actuals
not
available

not
available

FY 2003
Actuals
Data
available
12/05
Data
available
12/05
FY 2004     FY 2005
Pres. Bud.   Pres. Bud.
79          81
4.5
4.5
            million tons
Ibs. MSW
Baseline:       An analysis conducted in FY 2001 shows approximately 68 million tons (29.2%) of municipal solid waste diverted and 4.4 Ibs of
               MSW per person daily generation.  While data indicate that the growth in recycling rates has slowed, the target of a 35% recycling
               rate is being maintained.

Waste and Petroleum Management Controls

In 2005         Reduce releases to the environment by managing hazardous wastes and petroleum products properly.

In 2004         Reduce releases to the environment by managing hazardous wastes and petroleum products properly.

In 2003         For UST facilities, 72% are in operational compliance with leak detection, and 79% are in operational compliance with spill
               prevention requirements. An additional 4.1% of the RCRA facilities have permits or approved controls.

In 2002         4.5% of RCRA hazardous waste management facilities received permits or other approved controls.

In 2001         9.0% of RCRA hazardous waste management facilities received permits or other approved controls.

In 2000         12.6% of RCRA hazardous waste management facilities received permits or other approved controls.
Performance Measures                              FY2000     FY2001     FY2002    FY2003
                                                   Actuals      Actuals      Actuals     Actuals
Percent increase of RCRA hazardous waste management  12.6%       9.0%        4.5%       4.1%
facilities with permits or other approved controls.
Number of confirmed UST releases nationally.
FY 2004     FY 2005
Pres. Bud.   Pres. Bud.
2.4%        2.8%


<10,000     <10,000
            percentage pts.


            UST releases
                                                           34

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures

Increase  in  UST facilities  in significant  operational
compliance with leak detection requirements.

Increase  in  UST facilities  in significant  operational
compliance with  spill,  overfill and corrosion protection
regulations.

Percent   increase  of  UST  facilities  in  significant
operational compliance with both  detection and release
prevention   (spill  overflow,  corrosion   protection)
requirements.
FY 2000
Actuals




FY 2001
Actuals




FY 2002
Actuals




FY 2003
Actuals
-8%

-6%

FY 2004
Pres. Bud.
4%

4%

FY 2005
Pres. Bud.
not
applicable
not
applicable
1%
            percentage pts.
            percentage pts.
percent
Baseline:       EPA did not increase by 3% to 80% for the leak detection requirements or with spill, overfill and corrosion protection requirements by
               3% to 85% in FY 2003.  The FY 2003 actuals were 72% for UST facilities in significant operational compliance with leak detection
               requirements; 79% for UST facilities in significant operational compliance with spill, overfill and corrosion protection. Although the
               Agency has been working with the states to improve their reporting of both measures, the compliance rates for both have been steady
               or declining.  There is some variability in reporting by states because some states have more stringent requirements, while other states
               have targeted non-compliant UST facilities so the facilities that are inspected are not representative of all  facilities in the state.  A
               baseline for the new combined measure will be determined in FY 2004, and is currently estimated to be approximately 60%. Between
               FY 1999 and FY 2003, confirmed UST releases averaged 13,600. By the end of FY 2003, 83.1% of approximately 2,750 RCRA
               facilities had permits or other approved controls in place.

OBJECTIVE: RESTORE LAND

By 2008, 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.

Prepare for and Respond to Accidental and Intentional Releases

In 2005        Reduce and control the risks posed by accidental and intentional releases of harmful substances by improving our Nation's capability
               to prepare for and respond more effectively to these emergencies.
                                                           35

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

In 2004         Reduce and control the risks posed by accidental and intentional releases of harmful substances by improving our Nation's capability
               to prepare for and respond more effectively to these emergencies.

In 2003         EPA responded to or monitored 322 significant oil spills in the inland zone and Superfund accomplished 380 removal response
               actions.

In 2002         EPA responded to or monitored 203 oil spills and Superfund initiated 426 removal response actions

In 2001         EPA responded to or monitored 527 oil spills and Superfund initiated 302 removal response actions.

In 2000         EPA responded to or monitored 368 oil spills and Superfund initiated 375 removal response actions.

Performance Measures                               FY 2000
                                                    Actuals
Number of Superfund removal response actions initiated.   375

Oil spills responded to or monitored by EPA.              368

Percentage of emergency response and homeland security
readiness improvement.

Number of inspections  and exercises conducted at  oil
storage  facilities  that  are  required  to  have  Facility
Response Plans.
FY 2001
Actuals
302
527


FY 2002
Actuals
426
203


FY2003
Actuals
380
322
82.3%

FY2004
Pres. Bud.
350
300
10%

FY 2005
Pres. Bud.
350
300
10%
360
removals
spills
percent
inspections/
exercises
Baseline:       Through FY 2003, Superfund had initiated approximately 7,900 removal response actions. EPA typically responds to or monitors 300
               oil spill cleanups per year.  In FY2003, EPA completed evaluations of core emergency response capabilities in each region, and the
               average score from these was 823 out of a possible 1,000 points so 82.3 percent is used as the baseline for improvements. Between
               FY 1997 and FY 2003, approximately 31  percent (or 1,862) of the nearly 6,000 oil storage facilities  required to have Facility
               Response Plans were inspected.

Assess and Cleanup Contaminated Land

In 2005        Control the risks to human health and the environment at contaminated properties or sites through cleanup, stabilization, or other
               action, and make land available for reuse.
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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

In 2004         Control the risks to human health and the environment at contaminated properties or sites through cleanup, stabilization, or other
               action, and make land available for reuse.

In 2003         Superfund made 917 final site assessment decisions, controlled human exposures at 28 sites and groundwater migration at 54 sites,
               and achieved 40 construction completions.  The RCRA program controlled human exposures at 230 sites and groundwater migration
               at 175 sites. There were 18,518 LUST cleanups.

In 2002         Human exposures to toxins were controlled at 172 RCRA facilities and toxic releases to groundwater were controlled at 171 RCRA
               facilities. Also,  15,769 leaking underground storage tank cleanups were completed, and 42 Superfund construction completions were
               achieved.

In 2002         Superfund recorded 587 site assessment decisions.

In 2001         Human exposures to toxins were controlled at 179 RCRA facilities and toxic releases to groundwater were controlled at 154 RCRA
               facilities, 19,074 leaking underground storage tank cleanups were completed, and  47  Superfund  construction completions were
               completed.

In 2001         Superfund recorded 931 site assessment decisions.

In 2000         Human exposures to toxins were controlled at 191 RCRA facilities and toxic releases to groundwater were controlled at 168 RCRA
               facilities, 20,834 leaking underground storage tank cleanups were completed, and  87  Superfund  construction completions were
               completed.

In 2000         Superfund completed 468 site assessment decisions.

Performance Measures

Number of Superfund final site assessment decisions.

Number of Superfund construction completions.

Number of Superfund hazardous waste sites with human
exposures controlled.

Number  of  Superfund hazardous waste  sites  with
groundwater migration controlled.

Number of final remedies (cleanup targets)  selected at
FY 2000
Actuals
468
87



FY 2001
Actuals
629
47



FY2002
Actuals
587
42



FY2003
Actuals
917
40
28
54

FY 2004
Pres. Bud.
475
40
10
10
20
FY 2005
Pres. Bud.
500
40
10
10
20
assessments
completions
sites
sites
remedies
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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures
FY2000
Actuals
Superfund sites.

Number of leaking underground storage  tank cleanups  20,834
completed.

Number of high priority  RCRA facilities with human  191
exposures to toxins controlled.

Number of high priority RCRA  facilities with toxic  168
releases to groundwater controlled.
FY2001
Actuals


19,074


179


154
FY 2002
Actuals


15,769


207


174
FY2003
Actuals


18,518


230


175
                                                                                      FY2004     FY2005
                                                                                      Pres. Bud.   Pres. Bud.
                                                 21,000


                                                 166


                                                 129
                                                                                                  21,000


                                                                                                  225


                                                                                                  203
                                                                                                                             cleanups


                                                                                                                             facilities


                                                                                                                             facilities
Baseline;       By the end of FY 2003, Superfund  controlled human exposures at 82% (1,227 of 1,494) of eligible NPL sites and controlled
               groundwater migration at 65% (826 of 1,275) of eligible NPL sites, and completed construction at 58% (886) of the NPL sites. Of the
               1,714 RCRA Corrective Action high priority facilities, 73% (1,246)  have human exposures controlled, an increase from 1,018
               facilities with human exposures controlled at the end of FY 2002; and 61% (1,049) have groundwater migration controlled, an
               increase from 877 facilities with groundwater migration controlled by the end of FY 2002.  Furthermore, at the end of FY 2001there
               were  814  facilities with human exposures  controlled and 737  facilities groundwater migration controlled reflecting the strong
               EPA/state  partnership in this program.  At the end of FY 2003, 303,120  cleanups of confirmed releases from Federally-regulated
               leaking underground storage tanks were completed since 1987. At the end of FY 2002, mere was a universe of 1103 Superfund sites
               with final remedies selected. The Agency is currently evaluating this baseline and may adjust it downward in the future.

Superfund Cost Recovery
In 2005
In 2004
In 2003
Ensure trust fund stewardship by getting PRPs to initiate or fund the work and recover costs from PRPs when EPA expends trust fund
monies. Address cost recovery at all NPL and non-NPL sites with a statute of limitations (SOL) on total past costs equal to or greater
than $200,000.

Ensure trust fund stewardship by getting PRPs to initiate or fund the work and recover costs from PRPs when EPA expends trust fund
monies. Address cost recovery at all NPL and non-NPL sites with a statute of limitations (SOL) on total past costs equal to or greater
than $200,000.

Ensured trust fund stewardship by getting PRPs to initiate or fund the work and recover costs from PRPs when EPA expends trust
fund monies.  Addressed cost recovery at all NPL and non-NPL sites with a statute of limitations (SOL) on total past costs equal to or
greater than $200,000.
                                                            38

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures


In 2002         The goal was met. Cost recovery was addressed at 204 NPL and non-NPL sites of which 101 had total past costs greater than or equal
               to $200,000 and potential statute of limitations (SOL) concerns. EPA secured cleanup and cost recovery commitments from private
               parties in excess of $645 million.

In 2001         Although the goal was not met, there was no loss in dollars recovered. Cost recovery was addressed at 208 NPL and non-NPL sites,
               of which 89 had total past costs greater than or equal to $200,000 and potential SOL concerns.  EPA addressed cost recovery for 87 of
               89 sites and planned to write off costs associated with the other two SOL cases, but decision documents were not completed before the
               expiration of the SOL.

In 2000         Addressed cost recovery at 98.5% of NPL and non-NPL sites with a statute of limitations on total past costs equal to or greater than
               $200,000.

Performance Measures                               FY2000    FY2001    FY2002     FY2003     FY2004     FY2005
                                                    Actuals     Actuals     Actuals      Actuals      Pres. Bud.   Pres. Bud.
Refer to  DOJ, settle, or write  off 100% of Statute of  98.5        97.8        100         100         100         100         Percent
Limitations  (SOLs)  cases  for  SF  sites  with  total
unaddressed past costs equal to  or greater than $200,000
and report value of costs recovered.



Baseline:       In FY 98 the Agency addressed 100 percent of cost recovery at all NPL and non-NPL sites with total past costs equal or greater than
               $200,000.

Superfund Potentially Responsible Party Participation

In 2005         Reach a settlement or take an enforcement action before the start of a remedial action at 90 percent of Superfund sites having a viable,
               liable responsible party other than the federal government.

In 2004         Reach a settlement or take an enforcement action before the start of a remedial action at 90 percent of Superfund sites having a viable,
               liable responsible party other than the federal government.

In 2003         Maximized all aspects of PRP participation which included maintaining PRP work at 87% of the new remedial construction starts at
               non-Federal Facility Superfund, and emphasized fairness in the settlement process.

In 2002         In FY 2002 the percentage of remedial construction starts initiated by responsible parties exceeded the target by one percent.

                                                            39

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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                             6-Year Performance Data
                                     Annual Performance Goals and Measures
In 2001         Maximized all aspects of PRP participation by maintaining PRP work at 67.3% of the new remedial construction starts at non-Federal
               Facility Superfund sites, while emphasizing fairness in the settlement process.

In 2000         Maximized all aspects of PRP participation by maintaining PRP work at 68% of the new remedial construction starts at non-Federal
               Facility Superfund sites, while emphasizing fairness in the settlement process.

Performance Measures                              FY2000    FY2001     FY2002    FY2003     FY2004     FY2005
                                                  Actuals     Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
Ensure fairness by making Orphan Share Offers at 100%   100                                                                   Percent
of all eligible settlement negotiations for response work.

PRPs conduct 70% of the work at new construction starts    68          67.3         71          87                                 Percent

Percentage of Superfund  sites at which settlement or                                                 90          90         Percent
enforcement action taken before the start of RA.



Baseline:        In FY 98 approximately 70% of new remedial work at NPL sites (excluding Federal facilities) was initiated by private parties.  In
               FY2003, a settlement was reached or an enforcement action was taken with non-Federal PRPs before the start of die remedial action at
               approximately 90 percent of Superfund sites.

OBJECTIVE: ENHANCE SCIENCE AND RESEARCH

Through 2008, provide and apply  sound science  for protecting and restoring land by conducting leading-edge research and
developing a better understanding and characterization of environmental outcomes under Goal 3.

Research

Scientifically Defensible Decisions for Site Clean

In 2005         Complete at least four SITE demonstrations, with emphasis on NAPLs and sediments, in order to, by 2010, develop of evaluate 40
               scientific tools, technologies, methods, and models, and provide technical support that enable practitioners to 1) characterize the
               nature and extent of multimedia contamination; 2) assess, predict, and communicate risks to human health and the environment; 3)
               employ improved remediation options; and 4) respond to oil spills effectively.
                                                         40

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

In 2004         Provide risk assessors  and managers  with site-specific data sets on three applications detailing the performance  of conventional
               remedies for  contaminated sediments to help determine the most effective techniques for remediating contaminated sites and
               protecting human health and the environment.

In 2003         Delivered state-of-the-science report and methods to EPA and other stakeholders for risk management of fuel oxygenates; organic and
               inorganic contamination of sediments, ground water and/or soils; and oil spills to ensure cost-effective and technically sound site
               clean-up.

In 2002         EPA provided evaluation information on six innovative approaches that reduce human health and  ecosystem exposure from dense
               nonaqueous phase liquids (DNAPLs) and methly  tertiary butyl-ether (MTBE) in soils and groundwater, and from oil and persistent
               organics in aquatic systems.

In 2001         EPA provided technical information to support scientifically defensible and cost-effective decisions for clean-up of complex sites,
               hard-to-treat wastes, mining, oil spills near shorelines, and Brownfields to reduce risk to human health and the environment.

In 2000         The MTBE case studies summary report was delayed to include more than the original four sites. The SITE report was sent to OMB in
               FY 2000, but the time required for approval delayed its arrival in Congress. The dermal exposure route report was delayed until 12/00
               to allow for completing peer review.
Performance Measures                               FY 2000
                                                    Actuals
Summary Report of Case Studies of Natural Attenuation  0
of MTBE,  a fuel  additive, at Geographically Diverse
Locations
Superfund  Innovative Technology  Evaluation  (SITE)  18-Jan-
Program Report to Congress.                           2001

A report summarizing the key research findings methods,  31-Dec-
models, and factors relating to evaluating the risks from  2000
the dermal route of exposure.

Review  the  20   most  common  Superfund   soil  30-Sep-
contaminants and  develop eco-toxicity  soil  screening  2000
levels for wildlife and soil biota for chemicals where there
is sufficient data.
Deliver the Annual SITE Program Report to Congress.
FY2001     FY2002    FY2003    FY2004     FY2005
Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
                                                             report



                                                             report


                                                             report



                                                             values



                                                             report
                                                            41

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                                          Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

Performance Measures                               FY2000     FY2001     FY2002     FY2003     FY2004    FY2005
                                                    Actuals      Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
Complete draft of the FY 2002 Annual SITE Report to                           1           1                                   draft report
Congress.

Reports on performance data for conventional sediment                                                   3                       reports
remedies for three sites.
SITE demonstrations completed                                                                                     4           demonstrations



Baseline:       This APG will contribute to an array of assessment and remediation options targeted to  addressing  situations where  uncertainty
               remains high, technology performance is lacking, or where existing options are cost- or time-intensive.  Through FY  2005, non-
               aqueous phase liquids (NAPLs) and contaminated sediments will be of special interest because of the cost and complexity of assessing
               and remediating these sites, as well as the risks they pose to public health.  EPA estimates that approximately 20% of National
               Priorities   List  (NPL)  sites   have    contaminated  sediments  with   risk  from   a   number   of  toxic   substances
               (http:www.epa.gov/superrund/resources/sediment/index.htm). Available remedies are unproven, expensive to implement, or both.
               The SITE program evaluates tools, technologies, and approaches for remediation, measurement, and  monitoring.  The innovative
               approaches that are evaluated are largely developed  hi the private sector. The purpose of the program  is to provide an independent
               assessment of performance, so that site decision-makers can gain confidence in selecting an innovative approach. Since the inception
               of the SITE program hi 1986, clean-up of contaminated sites through the use of innovative technologies has resulted in an estimated
               net cost  savings  of $2.4 billion (http://www.epa.gov/ORD/SITE/congress/540R03502/540R03502.htm).  Beginning in FY 2005,
               regular evaluations by independent and external panels will provide reviews of EPA research programs' relevance, quality, and
               successful performance to date, in accordance with OMB's Investment Criteria for Research and Development. Reviewers will also
               qualitatively determine  whether EPA has been successful in  meeting  its annual  and long-term  commitments for research.
               Recommendations and results from these reviews will improve the design and management of EPA research programs and help to
               measure progress under the Government Performance and Results Act (GPRA).
                                                            42

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                                               Environmental Protection Agency

                              FY 2005 Annual Performance Plan and Congressional Justification

                                                   6-Year Performance Data
                                           Annual Performance Goals and Measures

GOAL: HEALTHY COMMUNITIES AND ECOSYSTEMS

Protect, sustain, or restore the health of people, communities, and ecosystems using integrated and comprehensive approaches and
partnerships.

       OBJECTIVE: CHEMICAL, ORGANISM, AND PESTICIDE RISKS

       Prevent and reduce pesticide, chemical, and genetically engineered biological organism risks to humans, communities, and
       ecosystems.

       Decrease Risk from Agricultural Pesticides

       In 2005         Ensure new pesticide registration actions (including new active ingredients, new uses) meet new  health standards and are
                      environmentally safe.

       In 2005         Percentage of acre treatments that will use applications of reduced-risk pesticides

       In 2004         Decrease adverse risk from agricultural uses from 1995 levels.

       In 2003         FY 2003 data will be avail, in 2004  to verify decreased adverse risk from agricultural uses from 1995 levels  and assure, that new
                      pesticides that enter the market  are safe for humans and the  environ., through ensuring that all registration action are timely and
                      comply with standards mandated by law.

       In 2002         In FY 2002, EPA continued to register pest control products, including "safer" pesticides, thus ensuring that growers have an adequate
                      number of pest control options available to them.

       In 2001         The Agency registered 9 new chemicals, exceeding its target by 2, and 267 new chemicals, underperforming its target by 83.

       In 2000         The Registration Program completed registrations for 9 new chemicals, 3069 amendments, 1106 me-toos, 427 new uses, 95 inerts, 458
                      special registrations, 452 tolerances, and 13 reduced risk chemicals/biopesticides.

       Performance Measures                             FY2000    FY2001     FY2002    FY2003     FY2004    FY2005
                                                        Actuals     Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
       Register safer chemicals and biopesticides                13                     107        124         131         135         Regist. (Cum)


                                                                43

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures
New Chemicals (Active Ingredients)

New Uses
FY 2000
Actuals
9

427
FY 2001
Actuals
53

1896
FY 2002
Actuals
60

2329
FY 2003
Actuals
72

425
FY 2004     FY 2005
Pres. Bud.   Pres. Bud.
74          84          Regist. (Cum)

3,079        3479        Actions (Cum)
Percentage of acre-treatments with reduced risk pesticides

Maintain timeliness of S18 decisions

Reduce registration decision times for new conventional
chemicals

Reduce registration decision times for reduced risk
chemicals
                        7.5%
                        Data Lag     8.5%
                                     8.7%

                                     45.

                                     7%


                                     3%
                                     Acre-
                                     Treatments
                                     Days

                                     Reduction


                                     Reduction
Baseline:       The baseline for registration of reduced risk pesticides, new chemicals, and new uses, is zero in the year 1996 (the year FQPA was
               enacted). Progress is measured cumulatively since 1996. The baseline for acres-treated is 3.6% of total acreage in 1998, when the
               reduced-risk pesticide acres-treatments was 30,332,499 and total (all pesticides) was 843,063,644 acre-treatments.  Each year's total
               acre-treatments, as reported by Doane Marketing Research, Inc .serves as the basis for computing the percentage of acre-treatments
               using reduced risk pesticides. Acre-treatments count the total number of pesticide treatments each acre receives each year.  As of
               2003, there are no products registered for use against other potential bio-agents (non-anthrax). Conventional pesticides FY 2002
               baseline for reducing decision time is 44 months; reduced risk pesticides FY 2002 baseline for reducing time is 32.5 months. The
               2005 baseline for expedited new active ingredient pesticides is 4.  The S18 2005 baseline is 45 days.

Reduce use of highly toxic pesticides

In 2005        Decrease occurrence of residues of carcinogenic and cholinesterase-inhibiting neuortic pesticides on foods eaten by children from
               their average 1994-1996 levels

In 2004        Decrease occurrence  of residues of carcinogenic and  cholinestherase-inhibiting  pesticides on foods eaten by children from their
               average 1994-1996 levels.

In 2003        Data available hi 2004.
                                                            44

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures


Performance Measures                                FY2000     FY2001     FY2002     FY2003     FY2004    FY2005
                                                     Actuals      Actuals     Actuals      Actuals      Pres. Bud.   Pres. Bud.
Reduction of detections on a core set of 19 foods eaten by                                        Data lag     25%        27%         Reduced
children  relative to  detection  levels for those foods                                                                             Detect.
reported hi 1994-1996.


Baseline:       Percent occurrence of residues of FQPA priority pesticides (organophosphates and carbamates) on samples of children's foods in
               baseline years 94-96.  Baseline percent is 33.5% of composite sample of children's foods:  apples, apple juice, bananas, broccoli,
               carrots, celery, grapes, green beans (fresh, canned, frozen), lettuce, milk, oranges, peaches, potatoes, spinach, sweet corn (canned and
               frozen), sweet peas (canned and frozen), sweet potatoes, tomatoes, and wheat.

Reassess Pesticide Tolerances

In 2005        Ensure that through ongoing data reviews, pesticide active ingredients, and products that contain them are reviewed to assure adequate
               protection for human health and the environment, taking into  consideration exposure scenarios such as subsistence lifestyles of the
               Native Americans

In 2004        Ensure that through on-going data reviews, pesticide active ingredients and the products that contain them are reviewed to assure
               adequate protection for human health and the environment, taking into consideration exposure scenarios such as subsistence lifestyles
               of Native Americans.

In 2003        Assured that pesticides active ingredients registered prior to 1984 and the products that contain them were reviewed to assure adequate
               protection for human health & the envir. Also considered the unique exposure scenarios such as subsistence lifestyles of Native
               Americans in regulatory decisions.

In 2002        Reregistration efforts delayed to focus on reviewing and testing pesticides against anthrax.

In 2001        EPA reassessed 40% of tolerances requiring  reassessment under  FQPA and issued a cumulative 72% of total REDs required,
               achieving both targets.

In 2000        We did not achieve our FY2000 target for tolerance reassessments due to the ongoing work to establish a science policy on cumulative
               risk. Although we missed our annual target, we are still on track to meet our statutory deadlines to reassess all tolerances.
                                                             45

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                                           Environmental Protection Agency
                         FY 2005 Annual Performance Plan and Congressional Justification
                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures
Tolerance Reassessment
Reregistration Eligibility Decisions (REDs)
Product Reregistration
Tolerance reassessments for top  20 foods  eaten by
children
Number of inert ingredients tolerances reassessed
Reduce decision time for REDs
FY2000
Actuals
121
6
552
FY2001
Actuals
40%
            43.5%
FY2002
Actuals
66.9
72.7%
307
65.6
FY 2003
Actuals
68
75
306
65.6
FY2004
Pres. Bud.
78%
81.7%
750
83%

100
FY2005
Pres. Bud.
87.7%
88.2%
400
93%

100
7%
Tolerances(Cum)
Decisions (Cum)
Actions
Tolerances(Cum)

tolerances
Reduction
Baseline:       The baseline value for tolerance reassessments is the 9,721 tolerances that must be reassessed by 2006 using FQPA health and safety
               standards. The baseline for REDS is the 612 REDs that must be completed by 2008.  The baseline for inerts tolerances is 870 that
               must be reassessed by 2006.  The baseline for the top 20 foods eaten by children is 893 tolerances that must be reassessed by 2006.
               Tribal Pilot of 2 models in FY 2003; total number of models to be determined (current estimate is!6-18). Reregistration decision time
               baseline 38-40 months.
Testing of Chemicals in Commerce for Endocrine Disrupters
In 2005        Standardization and validation of screening assays
In 2004        Standardization and validation of screening assays
Performance Measures                               FY2000     FY2001     FY2002     FY2003    FY2004    FY2005
                                                    Actuals     Actuals      Actuals     Actuals     Pres. Bud.  Pres. Bud.
Screening Assays Completed                                                                           11           11          Screening assay
Baseline:       The non-prioritized universe  of chemicals that needs to be  considered for prioritization includes:  pesticide active  ingredients,
               pesticide inert ingredients, chemicals on  the TSCA Inventory, environmental  contaminants,  food additives, Pharmaceuticals,
               cosmetics, nutritional supplements, and representative mixtures. "Priority-setting"  refers to the determination of priorities for entry
               into Tier 1 Screening. The baseline for the Tier 1 screening measure is zero in 1996 - no valid methods for endocrine disrupter
               screening and testing existed when FQPA was enacted in FY1996.
                                                            46

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures
Process and Disseminate TRI Information - OEI

In 2005         The increased use of the Toxic Release Inventory Made Easy (TRI-ME) will result in a total burden reduction of 5% for Reporting '
               Year 2004 from Reporting Year 2003 levels.

In 2004         The increased use of the Toxic Release Inventory Made Easy (TRI-ME) will result in a total burden reduction of 5% for Reporting
               Year 2003 from Reporting Year 2002 levels.

In 2003         8,000 facilities reported expanded information on releases and waste management of lead and lead compounds in TRI in Reporting
               Year 2001 and increased usage of TRI-ME which resulted in total burden reduction of 5% for Reporting Year 2002.

In 2002         EPA reduced reporting burden, improved data quality, lowered program costs, and speeded data publication by increasing the amount
               of TRI electronic reporting from 70% to 92%.

In 2001         120,000 chemical submissions and revisions processed; published annual summary of TRIS database in April 2001; and TRI Public
               Data Release published in April 2001.

In 2000         Processed all submitted facility chemical release reports, published annual summary of TRI data, provided improved information to
               the public about TRI chemicals, and maximized public access to TRI information.
Performance Measures

Total  electronic reporting  of all chemical submissions
processed.  (Includes diskette submissions created by
ATRS, TRI-ME, and other reporting software programs,
as well as web-based submissions.)

TRI Public Data Release

Chemical submissions and revisions processed.

TRIS database complete and report issued

Facilities reporting releases and waste management of
lead and lead compounds.

Percentage of TRI chemical forms submitted over the
FY 2000
Actuals
FY 2001
Actuals
FY2002
Actuals
92
FY 2003
Actuals
FY 2004     FY 2005
Pres. Bud.   Pres. Bud.
Published

119,000
Published

120,000
On Target   Published
                                    8561


                                    25
                                    50
                                    55
                                                                        Percent
                                    Published

                                    Forms

                                    Published

                                    Facilities


                                    Percent
                                                           47

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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures

Performance Measures                              FY2000    FY2001     FY2002     FY2003     FY2004    FY2005
                                                  Actuals     Actuals     Actuals     Actuals      Pres. Bud.  Pres. Bud.
Internet using TRI-ME and the Central Data Exchange.



Baseline:       In FY 2001,TRI electronic reporting was 70%.

Reduce Wildlife Incidents and Mortalities

In 2005         Reduce from 1995 levels the number of incidents involving mortalities to nontargeted terrestial and aquatic wildlife caused by
               pesticides

In 2004         Reduce Wildlife Incidents and Mortalities

Performance Measures                              FY2000    FY2001     FY2002     FY2003     FY2004    FY2005
                                                  Actuals     Actuals     Actuals     Actuals      Pres. Bud.  Pres. Bud.
Number of incidents  and mortalities to terrestrial and                                                  5            11          reduction
aquatic wildlife caused by the 15 pesticides responsible
for the greatest mortality to such wildlife



Baseline:       80 reported bird incidents (involving 1150 estimated bird casualties);  65 reported fish incidents (involving 632,000 estimated fish
               casualties) as reported in 1995.

Exposure to Industrial / Commercial Chemicals

In 2005         Reduce exposure to and health effects from priority industrial / commercial chemicals

In 2004         Reduce exposure to and health effects from priority industrial / commercial chemicals

In 2001         Capacitor, Transformer and Bulk Waste data reported by industry on a calendar year basis and not available until September 2002.
               The Transfomer Rsclassification Rule was published on April 2,2001.
                                                          48

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures


Performance Measures                               FY2000    FY2001    FY2002     FY2003     FY2004    FY2005
                                                    Actuals     Actuals     Actuals      Actuals     Pres, Bud.   Pres. Bud.
Safe Disposal of Transformers                                      4,885                                5,000        5000        Transformers

Safe Disposal of Capacitors                                        9,494                                9,000        9000        Capacitors

number of children aged 1-5 years with elevated blood                                                   270,000     225,000      children
lead levels (>10 ug / dl)


Baseline;        1999/2000 baseline released in January 2003: Approximately 400,000 cases of childhood lead poisoning cases according to NHANES
                data.  In 2004 a larger data set will be included as we will be expanding to include more EPA Regional efforts that will include all
                Federally administered and State administered programs. Introduced the "number of children aged 1-5 years" measure in FY2004.
                Since the baseline is 1999/2000 data we are unable to project targets for 2004 and 2005 due to the data-lag. The FY2003 data for a
                new baseline may not be available until 2005. The baseline for PCB transformers is estimated at 2.2 million units and for capacitors is
                estimated at 1.85 million units as of 1988 as noted in the 1989 PCB Notification and Manifesting Rule. From 1991-2001 there was a
                declining trend in PCB disposal due to failing equipment and environmental liability: the total number of PCB large capacitors safely
                disposed of 436,485 and the total number of PCB transformers safely disposed of 172,672 as of 2002.

Risks from Industrial / Commercial Chemicals

In 2005         Identify, restrict, and reduce risks associated with industrial/commercial chemicals.

In 2004         Identify and reduce risks associated with international industrial/commercial chemicals.

In 2004         Identify, restrict, and reduce risks associated with industrial/commercial chemicals.

In 2003         Of the approx. 1,633 applic. for new chem. and microorganisms submitted by industry, ensured those marketed are safe for humans
                and the envir. Increased proportion of commer. chem. that have undergone PMN review to signify they are properly managed and may
                be potential green altern. to  exist,  chem.

In 2002         EPA reviewed all 1,943 Pre-manufacturing Notices received during FY 2002. At the end of 2002, 21.5 percent of all chemicals in
                commerce had been assessed for risks. A large fraction of these chemicals also may be "green" alternatives to existing chemicals in
                commerce.

In 2001         Data was obtained from test plans submitted by industry for 724 chemicals already in commerce.

                                                            49

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                      Annual Performance Goals and Measures
In 2001         EPA reviewed 1,770 Premanufacturing Notices. By the end of 2001, 21 percent of all chemicals in commerce had been assessed for
               risks.

In 2000         All new chemical pre-manufacturing notification submissions were reviewed within the required timeframe.
Performance Measures

Number of TSCA Pre-Manufacture Notice Reviews

Through chemical  testing program, obtain test data for
high production volume chemicals on master testing list.

Notice of Commencements
Make screening level health and environmental effects
data publicly available for sponsored HPV chemicals

Reduction in the current year production-adjusted  Risk
Screening Environmental Indicators risk-based score of
releases and transfers of toxic chemicals.

High  Production  Volume  chemicals with  complete
Screening Information  Data Sets  (SIDS) submitted to
OECD SIDS Initial Assessment Meeting
Percentage of chemicals identified as highest priority by
the Acute Exposure Guideline Levels (AEGLs) Program
with short-term exposure limits established.
FY2000
Actuals
1838
FY2001
Actuals
1770

724
            21.0
FY 2002
Actuals
1943
FY 2003     FY 2004     FY 2005
Actuals     Pres. Bud.   Pres. Bud.
1,633        1700                    Notices

                                    Chemicals
                        843
                                    1300
                                                9%
                                                75
                                                12%
                                                            52%
                                                NOCs (Cum)

                                                cum. chemicals


                                                Index



                                                chemicals



                                                Total Chemicals
Baseline:       The baseline for TSCA PMNs in FY2004 is zero.  (EPA receives about 1,700 PMNs per year for chemicals about to enter commerce.
               From 1979-2002, EPA reviewed about 40,000 PMNs.  Of the 78,000 chemicals potentially in commerce, 16,618 have gone through
               the risk-screening process of Notice of Commencement.) The baseline for HPV measure is zero chemicals in 1998. The baseline for
               the RSEI measure is the index calculated  for 2001.   Baseline is 2002; calculation methodology by addition of AEGL values (10
               minute, 1 hour, 4 hour and 24 hour exposure periods) and numbers of chemicals addressed.  There is a list maintained by the AEGL
               FACA committee of highest priority chemicals: 99 chemicals are on List 1  which was generated at the program's inception in 1996
               and 137 chemicals are highest priority on List 2 which was generated in 2001. Therefore the total of highest priority chemical stands
               today at 236 chemicals,  however chemicals  can be added or deleted from the list to fit  stakeholder needs  which is why we have
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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures

               decided to provide percentage targets.  2001 levels will serve as the baseline reference point for the percent reduction in relative risk
               index for chronic human health associated with environmental releases of industrial chemicals in commerce as measured by Risk
               Screening Environmental Indicators Model analyzing results to date. Measurement Development Plans exist for HPV, VCCEP, and
               New Chemicals.

Chemical Facility Risk Reduction

In 2005         Protect  human health,  communities, and ecosystems from chemical risks and releases through facility risk reduction efforts and
               building community infrastructures.

In 2004         • Protect  human health,  communities, and ecosystems from chemical risks and releases through facility risk reduction efforts and
               building community infrastructures.

In 2003         Data available in March 2004.

In 2002         EPA audited 350 risk management plans.

In 2001         5 states implemented accident prevention programs and 43 8 risk management plan audits were completed.

In 2000         Three states implemented accident prevention programs and 266 risk management plan audits were completed.

Performance Measures                               FY2000    FY2001    FY2002     FY2003    FY2004     FY2005
                                                   Actuals     Actuals     Actuals     Actuals      Pres. Bud.    Pres. Bud.
Number of risk management plan audits completed.        266        438        350         Data lag     400         400         audits

Number  of states  implementing  chemical accident   351                                               states
prevention programs.



Baseline:        By the end of FY 2001,438 risk management plan audits were completed, and 15 states had implemented accident prevention
               programs.
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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures
OBJECTIVE: COMMUNITIES

Sustain, clean up, and restore communities and the ecological systems that support them.

U.S. - Mexico Border Water/Wastewater Infrastructure

In 2005         In the US-Mexico Border Region, sustain and restore community health, and preserve the ecological systems that support them.

In 2004         Increase the number of residents  in the  Mexico border area who are protected from health risks, beach pollution and damaged
               ecosystems from nonexistent and failing water and wastewater treatment infrastructure by providing improved water and wastewater
               service.

In 2003         Increased the number of residents in the Mexico border area who are protected from health risks, beach pollution and damaged
               ecosystems from nonexistent and failing water and wastewater treatment infrastructure by providing improved water and wastewater
               service.

In 2002         Increase the number of residents to  720,000 in the Mexico border area who are protected from health risks, beach pollution and
               damaged ecosystems from nonexistent and failing water and wastewater treatment infrastructure by providing improved water and
               wastewater service.

In 2001         Provided protection to over 576,405 residents in the Mexico border area from health risks, beach pollution and damaged ecosystems
               from nonexistent and failing water and wastewater treatment infrastructure by providing improved water and wastewater service.

In 2000         10 Additional water/wastewater projects (cumulative  total  of 36) along the Mexican border have been  certified  for design-
               construction.
Performance Measures

Number of people in Mexico border area protected from
health risks, because of adequate water  & wastewater
sanitation systems funded through border environmental
infrastructure funding, (cumulative)

Projects  certified for design-construction  along the  10
Mexican Border
FY2000
Actuals
FY2001     FY2002     FY2003
Actuals     Actuals     Actuals
576,405     720,000     872,000
FY 2004     FY 2005
Pres. Bud.   Pres. Bud.
990,000     1.5 Million   People
                                                                        Projects
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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures


Baseline:       The US-Mexico border region extends more than 3,100 kilometers (2,000 miles) from the Gulf of Mexico to the Pacific Ocean, and
               62,5 miles on each side of the international border. More than 11.8 million people reside along the border and this figure is expected
               to increase to 19.4 million by 2020.  Ninety percent of the population reside in the 14 impaired, interdependent sister cities. Rapid
               population growth in urban areas has resulted in unplanned  development, greater demand for land and energy, increased traffic
               congestion, increased waste generation, overburdened or  unavailable waste treatment and disposal facilities, and more frequent
               chemical emergencies. Rural areas suffer from exposure to airborne dust, pesticide use, and inadequate water supply and treatment
               facilities. EPA, other US Federal agencies, and the Government of Mexico have partnered to address these environmental problems.

World Trade Organization - Regulatory System

In 2005        Assist trade partner countries in completing environmental reviews

Performance Measures                               FY2000     FY2001     FY2002    FY2003    FY2004     FY2005
                                                    Actuals     Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
Number of environmental reviews initiated by FTAA                                                                3            countries
countries following the  enactment of the 2002 Trade
Promotion Act (TPA).


Baseline:       As of the end of FY 2003, two environmental reviews (Chile and Singapore) have been initiated since the enactment of the 2002
               Trade Promotion Act.

Revitalize Properties

In 2005        Leverage jobs by assessing, promoting the cleanup and reuse of brownfields properties.

In 2004        Leverage jobs by assessing, promoting the cleanup and reuse of brownfields properties.

In 2003        Available data shows that the Brownfields program has generated 1,202 jobs and placed 62% of the job training program participants
               as of the third quarter.

In 2003        EPA is on track to leverage or generate $0.9 B through revitalization efforts.

In 2002        $0.75 billion of cleanup and redevelopment was leveraged.


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In 2002
In 2001
In 2001
In 2000
                          Environmental Protection Agency
         FY 2005 Annual Performance Plan and Congressional Justification
                               6-Year Performance Data
                      Annual Performance Goals and Measures
4,418 jobs were leveraged from Brownfields activities.
$1.2 billion of cleanup and redevelopment was leveraged.
8,232 jobs were leveraged from Brownfields activities.
3,030 jobs were leveraged from Brownfields activities.
Performance Measures
Number of Brownfields properties assessed.
Number of Brownfields cleanup grants awarded.
Number of properties cleaned up using  Brownfields
funding.
Estimated number of Brownfield property acres available
for reuse or continued use.
Number of jobs leveraged from Brownfields activities.
Percentage of Brownfields job training trainees placed.
Amount of cleanup and redevelopment funds leveraged at
Brownfields sites.
FY 2000
Actuals
337


FY 2001
Actuals
676


FY 2002
Actuals
1,158


FY 2003
Actuals
472 (qtr 3)


FY 2004
Pres. Bud.
1,000
25
no target
FY2005
Pres. Bud.
1,000
25
60 -
assessments
grants
properties
                                                                                  no target     no target     acres

                                   3,030       8,232       4,418       1,202 (qtr 3)  2,000       5,000        jobs
                                                                      62% (qtr 3)   65%        65%        trainees placed
                                               $1.2B       $0.756     $0.3B(qtr3)  S0.9B       $1.0B       funds
Baseline:       By the end of FY 2002, the Brownfields program had leveraged 19,646 jobs, provided job training to 913 individuals, placed an
               average of 65% of job training participants, and leveraged a total of $6.7 billion.  Data reported for FY 2002 reflect accomplishments
               up to the 3rd quarter of FY 2002.
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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                              6-Year Performance Data
                                     Annual Performance Goals and Measures

OBJECTIVE: ECOSYSTEMS

Protect, sustain, and restore the health of natural habitats and ecosystems.

Protecting and Enhancing Estuaries

In 2005         Working with NEP partners, protect or restore an additional 25,000 acres of habitat within the study areas for the 28 estuaries that are
               part of the National Estuary Program (NEP).

In 2004         Restore and protect estuaries through the implementation of Comprehensive Conservation and Management Plans (CCMPs).

In 2003         Restored and protected estuaries through the implementation of Comprehensive Conservation and Management Plans (CCMPs).

In 2002         Restored and protected over  137,000 acres of estuary habitat through the  implementation of Comprehensive Conservation and
               Management Plans (CCMPs).

In 2001         Restored and protected 70,000 acres of estuaries through the implementation of Comprehensive Conservation and Management Plans
               (CCMPs).

Performance Measures                              FY2000    FY2001     FY2002     FY2003     FY2004    FY2005
                                                  Actuals     Actuals     Actuals     Actuals     Pres. Bud.  Pres. Bud.
Acres of habitat restored and protected nationwide as part              70,000      137,710     118,171     35,000      25,000      Acres
of the National Estuary Program, (incremental)



Baseline:       As of January 2000, there were over 600,000 acres of habitat preserved, restored, and/or created.

Gulf of Mexico

In 2005         Prevent water pollution and protect aquatic species in order to improve the health of the Gulf of Mexico.

In 2004         Assist the Gulf States in implementing watershed restoration actions in 71 (5-year rolling average) priority impaired coastal river and
               estuary segments.

In 2003         Assisted the Gulf States in implementing watershed restoration actions in 14 priority unpaired coastal river and estuary segments.

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures


In 2002         Assisted the Gulf States in implementing restoration actions by supporting the identification of place-based projects in 137 State
                priority coastal river and estuary segments.

In 2001         Assisted the Gulf States in implementing watershed restoration action strategies (WRAS) or their equivalent in 37 priority coastal
                river and estuary segments.

In 2000         Assisted the Gulf states in implementing watershed restoration action strategies (WRAS) or similar plans to restore waterbodies in 14
                priority impaired coastal river and estuary segments.


Performance Measures                               FY2000     FY2001     FY2002     FY2003     FY2004     FY2005
                                                    Actuals     Actuals     Actuals      Actuals      Pres. Bud.   Pres. Bud.
Impaired  Gulf  coastal  river  and  estuary segments  31           37          137          95          71  (5  yr               Segments
implementing watershed restoration actions (incremental).                                                    rolling
                                                                                                      average)
Reduce releases of nutrients throughout the  Mississippi                                                                < 14,128     KM2
River Basin that affect the size of the hypoxic zone in the
Gulf of Mexico, as  measured  by the five year  running
average



Baseline:        There are 95 coastal watersheds at the 8-digit hydrologic unit code (HUC) scale on the Gulf coast. The Gulf of Mexico Program has
                identified 12 priority coastal areas for assistance. These  12  areas include 30 of the 95 coastal watersheds.  Within the 30 priority
                watersheds, the Gulf States have identified 354 segments that are impaired and not meeting full designated uses under the States' water
                quality standards.  The 1996-2000 running average size = 14,128 km2.

Great Lakes Assessment and Implementation Actions

In 2005         Prevent water pollution and protect aquatic systems so that overall ecosystem health of the Great Lakes is improved by at least 1 point

In 2004         Great Lakes ecosystem components will improve, including progress on fish contaminants, beach closures, air toxics, and trophic
                status.

In 2003         End of year data will be available in 2004 to verify that Great Lakes ecosystem components have improved, including progress on fish
                contaminants, beach closures, air toxics, and trophic status.

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
In 2002         By removing or containing contaminated sediments, 100,000-200,000 pounds of persistent toxics which could adversely affect human
               health will no longer be biologically available through the food chain. This contributes to decreasing fish contaminants and advances
               the goal of removing fish advisories

In 2001         Great Lakes ecosystem components improved, including progress on fish contaminants, beach toxics, air toxics, and trophic status.

In 2000         6,000 of acres of aquatic, wetland, riverine, and terrestrial Great Lakes habitats were positively impacted.

Performance Measures
FY2000
Actuals
Long-term concentration trends of toxics (PCBs) in Great
Lakes top predator fish.
Long-term concentration trends of toxic chemicals in the
air.

Total phosphorus concentrations (long-term) in the Lake
Erie Central Basin.

Average concentrations of PCBs in whole lake trout and
walleye samples will decline.

Average concentrations of toxic chemicals in the air in the
Great Lakes basin will decline

Restore and delist Areas of Concern (AOCs) within the
Great Lakes basin
Cubic  yards  (in  millions)  of contaminated sediment
remediated in the Great Lakes (cumulative from 1997).

Great Lakes Ecosystem  Indicator Indices  with reports,  10
addressing   select  fish  contaminants,   atmospheric
deposition, limnology, biology, and sediments.
Model predictions for Lake Michigan for toxics reduction  5
scenarios.
FY 2001
Actuals
Uncertain
FY 2002
Actuals
Declining
            Declining    Declining


            Improving   Mixed
FY 2003
Actuals
Data Lag

Data Lag


18.4
FY2004
Pres. Bud.
5%


7%


10
FY 2005
Pres. Bud.
                                                 10


                                                 5%


                                                 5%


                                                 3


                                                 2.9
            Annual
            decrease

            Annual
            decrease

            Ug/1

            Annual
            Decrease

            Annual
            Decrease

            AOC
                                                                         Cubic   yards
                                                                         (millions)
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                                          Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

Baseline:       Great Lakes rating of 20 on a 40 point scale where the rating uses select Great Lakes State of the Lakes Ecosystem indicators based on
               alto 5 rating system for each indicator, where 1 is poor and 5 is good. The trend (starting with 1972 data) for toxics in Great Lakes
               top predator fish is expected to be less than 2 parts per million (the FDA action level) but far above the Great Lakes Initiative target or
               levels at which fish advisories can be removed. The trend (starting with 1992 data) for PCB concentrations in the air is expected to
               range from 50 to 250 picograms per cubic meter.  In 2002, no Areas of Concern had been delisted. 2.1 million yards of remediated
               sediments are the cumulative number of yards from 1997 - 2001.

Wetland and River Corridor Projects

In 2005         Working with partners, achieve no net loss of wetlands

Performance Measures                               FY2000     FY2001     FY2002     FY2003    FY2004    FY200S
                                                   Actuals     Actuals      Actuals      Actuals     Pres. Bud.   Pres. Bud.
Annually, in partnership  with the Corps of Engineers and                                                               No    Net  Acres
States, achieve no net loss of wetlands in the Clean Water                                                               Loss
Act Section 404 regulatory program

Working with partners, achieve no net loss of acres                                                                     No    Net  Acres
                                                                                                                Loss


Baseline:       Annual net loss of an estimated 58,500 acres. In partnership with the Corps of Engineers, a baseline and initial reporting will begin in
               FY 2004 on net loss of wetlands in the CWA Section 404 regulatory programs.

Chesapeake Bay Habitat

In 2005         Prevent water pollution and protect aquatic systems so that overall aquatic system health of the Chesapeake Bay is improved enough
               so that  there are 91,000 acres of submerged aquatic vegetation,  (cumulative)

In 2005         Reduce nitrogen loads by 74 million pounds per year; phosphorus loads by 8.7 million pounds per year, and sediment loads by 1.06
               million tons per year from entering the Chesapeake Bay, from 1985 levels

In 2004         Improve habitat in the Chesapeake Bay.

In 2003         Improved habitat in the Chesapeake Bay.
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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                             6-Year Performance Data
                                     Annual Performance Goals and Measures

 In 2002        Meeting the annual performance goal to improve habitat in the Bay requires adherence to commitments made by the Chesapeake 2000
               agreement partners and monumental effort/resources from all levels of government (local, state, and a range of Federal agencies) and
               from private organizations/citizens.

 In 2001        Improved habitat in the Chesapeake Bay by reducing 48,1  million pounds of nitrogen, 6.84 million pounds of phosphorous  and
               restored over 69,000 acres of submerged aquatic vegetation.

 In 2000        In the Chesapeake Bay watershed, 1,032 stream miles of migratory fish habitat was reopened through the provision of fish passages,
               construction and restoration of 11,000 acres of oyster habitat, and 41% of wastewater flow to the Bay was treated by Biological
               Nutrient Removal.

 Performance Measures                             FY2000    FY2001     FY2002     FY2003    FY2004    FY2005
                                                  Actuals     Actuals     Actuals     Actuals     Pres. Bud.  Pres. Bud.
 Reduction,  from  1985 levels, of  nitrogen  (M/lbs),                                                           74/8.7/1.06   Lbs/Lbs/Tons
 phosphorus (M/lbs), and sediment  loads (tons) entering
 Chesapeake Bay. (cumulative)
 Acres of submerged aquatic vegetation (SAV) present in  68,125      69,126      85,252       89,659      90,000      91,000      Acres
 the Chesapeake Bay. (cumulative)


 Baseline:       In 1984, there were 37,000 acres of submerged aquatic vegetation in the Chesapeake Bay. In 2002, baseline for nitrogen loads was 51
               million pounds per year; phosphorus loads was 8.0 million pounds per year, and sediment loads was 0.8 million tons per year.

 OBJECTIVE: ENHANCE SCIENCE AND RESEARCH

- Through 2008,  provide a sound scientific foundation for EPA's goal of protecting, sustaining, and restoring  the health of
 people, communities,  and ecosystems  by  conducting leading-edge  research  and developing a better understanding and
 characterization of environmental outcomes under Goal 4.
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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures

Research

Research to Support FQPA

In 2005        Provide high quality exposure, effects and assessment research results that support the August 2006 reassessment of current-use
               pesticide tolerances to EPA's Office of Pesticide Programs so that, by 2008, EPA will be able to characterize key factors influencing
               children's and other subpopulations' risks from pesticide exposure,

Performance Measures                               FY2000     FY2001     FY2002     FY2003    FY2004     FY2005
                                                    Actuals      Actuals     Actuals     Actuals     Pres. Bud.   Pres. Bud.
Children's exposure data and tools for assessing aggregate                                                                09/30/05     data/tools
exposure to residential-use pesticides

Baseline:       The Food Quality Protection Act (FQPA) requires EPA to review, by August 2006, the pesticide tolerances for pesticides in use as of
               August 1996. EPA's Office of Research Development (ORD) has been conducting research to generate new and improved exposure
               and effects tools (data, methods,  and models) to assist the Office of Pesticide Programs (OPP) in meeting this 2006 requirement. In
               FY05, ORD will provide OPP with a summary document highlighting the key results from ORD's exposure research program over the
               period 2000-2005.  ORD will also provide OPP with validated children's pesticide exposure data and exposure factor  data from
               multiple exposure field and laboratory studies. This high quality data will fill critical data gaps and eliminate the need for using many
               default assumptions currently used in the risk assessment process. An analysis of these results will also be performed to help identify
               remaining critical children's exposure data needs.  ORD will also provide OPP with a suite of exposure-to-dose models that can be
               used  to estimate aggregate pesticide exposures for  children (by  age  and  developmental life  stage)  and other susceptible
               subpopulations. These state-of-the-art models will be used by OPP to develop pesticide exposure distributions and address key issues
               associated with variability and uncertainty in exposure.  With improved information, EPA can better protect public health from risks
               posed by pesticide use.

               Beginning in FY 2005, regular  evaluations by independent and external panels will provide reviews of EPA research  programs'
               relevance, quality, and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.
               Reviewers will  also qualitatively determine whether EPA has been successful in meeting its annual and long-term commitments for
               research.

Risk Assessment

In 2005        Through FY2005 initiate  or submit to external review 28 human health assessments and complete 12 human health assessments
               through the  Integrated Risk Information System (IRIS).  This  information will improve EPA's and other decisionmakers' ability to
               protect the public from harmful chemical exposure

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                       Annual Performance Goals and Measures
Performance Measures

Complete 4 human health assessments and publish their
results on the IRIS website
Initiate or submit to external peer review human health
assessments of at least 20 high priority chemicals.
Complete 8 human health assessments and publish their
results on the IRIS website
Initiate or submit to external peer review human health
assessments of 8 high priority chemicals
FY 2000
Actuals
FY 2001
Actuals
FY 2002
Actuals
FY 2003
Actuals
FY 2004
Fres. Bud.
4


20
FY 2005
Pres. Bud.
                                                                          assessments

                                                                          assessments


                                                                          assessments

                                                                          assessments
Baseline:        IRIS is an EPA data base containing Agency consensus scientific positions on potential adverse human health effects that may result
                from exposure to chemical substances found in the environment. IRIS currently provides information on health effects associated
                with chronic exposure to over 500 specific chemical substances.  IRIS  contains chemical-specific summaries of qualitative and
                quantitative health information in support of the first two steps of the risk assessment process, i.e., hazard identification and dose-
                response evaluation. Combined with specific situational exposure assessment information, the information in IRIS may be used as a
                source in evaluating potential public health risks from environmental contaminants. IRIS is widely used hi risk assessments for EPA
                regulatory programs and site-specific  decision making. Updating  IRIS with new scientific information is critical to maintaining
                information quality and providing decision makers with a credible  source of health effects information.  Achieving this APG will
                provide EPA and other decision makers with needed updates to IRIS so they can make informed decisions on how to best protect the
                public from harmful chemical exposure. In FY 2004, the Agency will complete 4 human health assessments and initiate or submit for
                external  peer review human health assessments of at least 20 high priority chemicals.  In FY 2005, EPA will complete 8 more
                assessments and initiate or submit for  review an additional 8 assessments, for a two-year total of 12 completed assessments and 28
                initiated or submitted for review.

                Beginning  in FY 2005, regular evaluations by independent  and external panels  will provide reviews of EPA  research programs'
                relevance, quality, and successful performance to date,  in accordance with OMB's Investment Criteria for Research and Development.
                Reviewers  will also qualitatively determine whether EPA has been successful in meeting its annual and long-term commitments for
                research.
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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures
Regional Scale Ecosystem Assessment Methods

In 2005         The baseline ecological condition of Western streams will be determined so that, by 2008, a monitoring framework is available for
                streams and small rivers in the Western U.S.  that can be used from the local to the national level for statistical assessments of
                condition and change to determine the status and trends of ecological resources.

In 2004         Provide Federal, state and local resource managers with a means to more effectively determine long-term trends in the condition and
                vitality of Eastern U.S. stream ecosystems through measurements of changes in the genetic diversity of stream fish populations.
Performance Measures

A study of fish genetic  diversity that demonstrates the
power of this modern approach for evaluating condition
and vitality of biotic communities to Federal, state and
local resource managers.
FY2000
Actuals
FY2001
Actuals
FY 2002
Actuals
FY2003
Actuals
FY 2004
Pres. Bud.
1
FY 2005
Pres. Bud.
                                                                          report
Baseline   ecological   condition  of  Western  streams
determined
                                                                          report
Baseline:        This FY 2005 APG represents the first statistically-valid baseline for Western stream condition from state-based data.  Although
                States and Tribes are required by the Clean Water Act (CWA) to monitor the condition of all their waters, they typically are only able
                to monitor at, and make scientifically defensible statements about, targeted sites that account for only a small percentage of their total
                waters.  The monitoring framework used in the achievement of this APG removes scientific uncertainty by using a probability design
                approach (random sampling) to provide a more cost-effective, scientifically-defensible alternative for determining the condition of all
                the streams of a State or Tribe.  EPA is transferring this approach to our State, Tribal, and EPA Regional partners in the Western U.S.
                so that they can determine the status and trends of their ecological resources. This monitoring framework also provides the scientific
                basis for identifying problems and  needs for action, causes of harm, and successful mitigation and restoration efforts.  This
                information will ultimately allow EPA to determine its success in achieving specific environmental outcomes.

                Beginning  in FY 2005,  regular evaluations by independent and external panels will  provide reviews of EPA  research programs'
                relevance, quality, and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.
                These  evaluations will include an  examination of a program's design to determine the  appropriateness of a program's short-,
                intermediate-, and long-term goals and  its strategy for attaining these. Reviewers will also qualitatively determine whether EPA has
                been successful in meeting its annual and long-term commitments for research. Recommendations and results from these reviews will
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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures

                improve the design  and management of EPA research programs and help to measure  their progress under the Government
                Performance and Results Act (GPRA).

Research on Riparian Zone Restoration

In 2005         Provide  technical  guidance for implementing  and evaluating projects to restore riparian zones, which  are critical  landscape
                components for the restoration of aquatic ecosystems and water quality, so that, by 2010, watershed managers have state-of-the-
                science field-evaluated tools,  technical guidance,  and decision-support systems for selecting, implementing, and evaluating cost-
                effective and environmentally-sound approaches to restore ecosystem services as part of watershed management

Performance Measures                                FY2000    FY2001     FY2002     FY2003     FY2004     FY200S
                                                     Actuals     Actuals      Actuals     Actuals      Pres. Bud.   Pres. Bud.
Technical  guidance for  implementing  and evaluating                                                                 1           tech. guide
projects to restore riparian zones


Baseline:        This FY 2005 APG will provide State, Tribal, Regional, and local watershed managers and restoration practitioners with technical
                guidance  for selecting, implementing, and evaluating cost-effective  and environmentally-sound approaches to restore ecosystem
                services.  Essential ecosystem  services are a result of naturally occurring processes and include such necessities for human health as a
                reliable supply of clean water, oxygen, nutrient cycling,  and soil regeneration, as well as wildlife habitat and greenspace.  Habitat
                destruction, invasive species, and non-point  source  pollutants such as excess nitrogen and eroded sediments adversely impact
                ecosystem services by contributing to the loss of ecosystems and/or their functions.  Finding effective and efficient ways to protect
                and restore ecosystem services is necessary for human, as well as ecological, health.  Riparian zones, i.e. those areas immediately
                adjacent to river and stream banks, are critical components of any watershed. Without a healthy riparian zone, it would be difficult, if
                not impossible, to  achieve water quality goals.  EPA is  evaluating the effectiveness of riparian restoration techniques  as tools to
                achieve goals such as water quality criteria or the restoration of specific ecosystem functions, such as denitrification. The guidance
                represented by this  APG will  help watershed managers and restoration  practitioners  in decision-making and on-the-ground
                implementation of scientifically- and technically-defensible restoration and management techniques.

                Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
                relevance, quality, and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.
                Reviewers will also qualitatively determine whether EPA has been successful in meeting its annual and long-term commitments for
                research.
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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures

Exposures and Effect of Environmental Research

In 2005         Provide risk assessors and managers with methods and tools for measuring exposure and effects in children, and characterizing and
                reducing risks to children from environmental agents in schools so that, by 2014, EPA will be able to demonstrate why some groups of
                people, defined by life stage, genetic factors, and health status, are more vulnerable than others to adverse effects from exposure to
                environmental agents.

Performance Measures                                FY2000     FY2001     FY2002     FY2003     FY2004    FY2005
                                                     Actuals     Actuals      Actuals     Actuals      Pres. Bud.   Pres. Bud.
Methods and tools for measuring exposure  and effects hi                                                                09/30/05     methods/tools
children, and characterizing and reducing risks to children
from environmental agents in schools



Baseline:        Current risk assessments for children are hampered by the lack of exposure and risk data and by a lack of methods that are appropriate
                for children.  By FY 2004, EPA expects to have better data on children's exposures and on children's exposure factors. In FY 2005,
                research will build upon the improved data on children's exposures by compiling and analyzing the data, and translating the enhanced
                knowledge into better methods and approaches for measuring and estimating children's exposure and risk.  The research in FY 2005
                will culminate in initial approaches, ready for external peer review, on: how to conduct children's exposure and risk assessments; how
                to replace default uncertainty factors  with data and distributions; and how to use biomarkers more appropriately in characterizing
                children's exposures.  In addition, the increased understanding of children's exposures will provide  evaluated  methods for reducing
                their exposures and risks in schools and other indoor environments.  These data, methods, and approaches will significantly improve
                the reliability, credibility, and transparency of children's  risk assessments used by regulatory decision-makers throughout EPA and
                will provide to the public and to school and daycare officials tested methods to reduce children's exposures to chemical pollutants.

                Beginning in  FY 2005, regular evaluations by independent and external panels will provide  reviews of EPA research programs'
                relevance, quality, and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.
                Reviewers will also qualitatively determine whether EPA has been successful in meeting its annual  and long-term commitments for
                research.  Recommendations and results from these reviews will improve the design and management of EPA research programs and
                help to measure their progress under the Government Performance and Results Act (GPRA).

Mercury Research

In 2005         Provide information on managing mercury  and other co-pollutants from utility boilers so that, by 2010, there is an extensive set of
                data and tools available to help industry and federal, state, and local environmental management officials make decisions on the most
                cost-effective ways to  reduce or prevent mercury releases into the environment.

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures


Performance Measures                                FY2000     FY2001    FY2002     FY2003     FY2004     FY2005
                                                     Actuals     Actuals     Actuals     Actuals     Pres. Bud,   Pres. Bud.
Information on managing mercury and other co-pollutants                                                                 1           report
from utility boilers


Baseline:        EPA's Mercury Study Report to Congress identified emissions from coal-fired utilities as one of the most significant contributors of
                mercury to the air (http://www.epa.gov/oar/mercury.html).  On December 14, 2000, EPA determined that mercury emissions from
                coal-fired utilities needed to be regulated. Unless some form of multi-pollutant legislation for utility boilers is passed by Congress, a
                Maximum Achievable Control Technology standard (MACT) will be promulgated in December 2004 to control mercury emissions
                with full compliance of utilities expected by December 2007. There are a variety of technological options under development that
                could be used to more cost-effectively achieve any required mercury reduction. These control technologies need to be  evaluated
                before utilities make decisions on how to comply.  The state-of-the-science on  emission controls for mercury will be advanced by
                investigating the factors that impact the species of mercury in coal-fired utilities flue gas and the performance of promising mercury
                control  technologies. Results  available by the end of FY 2005 will be documented and made available for use by utilities and other
                interested stakeholders.

                Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
                relevance, quality, and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.
                These evaluations will include an examination of  a program's design to  determine  the appropriateness  of a program's  short-,
                intermediate-, and long-term goals and its strategy for attaining these. Reviewers will also qualitatively determine whether EPA has
                been successful in meeting its annual and long-term commitments for research. Recommendations and results from these reviews will
                improve the design and management of EPA research programs and  help  to measure  their progress under  the Government
                Performance and Results Act (GPRA).

Homeland Security Research

In 2005         Provide tools, case studies, and technical guidance so that, by FY 2006, first responders and decision-makers will have the methods,
                guidance documents, and technologies to enhance safety and to mitigate adverse effects of the purposeful introduction of hazardous
                chemical or biological materials into the environment.
                Provide a database of EPA experts on topics of importance to assessing the health and ecological impacts of actions taken against
                homeland security that is available to key EPA staff and managers who might be  called upon to rapidly assess the impacts of a
                significant terrorist event.
In 2004

                significant terrorist event
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In 2004
In 2004
                            Environmental Protection Agency

         FY 2005 Annual Performance Plan and Congressional Justification

                                6-Year Performance Data
                       Annual Performance Goals and Measures

Provide to building owners, facility managers, and others, methods, guidance documents, and technologies to enhance safety in large
buildings and to mitigate adverse effects of the purposeful introduction of hazardous chemical or biological materials into indoor air.

Verify two point-of-use drinking water technologies that treat intentionally introduced contaminants in drinking water supplies for
application by commercial and residential users, water supply utilities, and public officials.
Performance Measures

Verify two  treatment technologies  for  application in
buildings by commercial and residential users, utilities,
and public officials to treat contaminants in drinking
water supplies.

Prepare ETV evaluations on at least 5 new technologies
for  detection,  containment,  or  decontamination  of
chemical/biological contaminants in buildings to help
workers select safe alternatives.
Through  SBIR awards,  support  as least  three new
technologies/methods to decontaminate HVAC systems in
smaller commercial buildings or decontaminate valuable
or irreplacable materials.
Prepare technical guidance  for  building owners  and
facility  managers on methods/strategies  to minimize
damage to buildings  from intentional  introduction of
biological/chemical contaminants.
A restricted  access   database  of  EPA  experts with
knowledge, expertise, and experience for use by EPA to
rapidly assess health and ecological impacts  focused on
safe buildings and water security.

Risk  assessment  toolbox  to predict  and  reduce  the
consequences  of chemical/biological  attacks in U.S.
cities.
Technical  guidance   for  water system  owners  and
operators on methods/strategies for minimizing damage
                                     FY2000     FY2001     FY2002     FY2003     FY2004     FY2005
                                     Actuals     Actuals      Actuals      Actuals     Pres. Bud,   Pres. Bud.
                                                                                      2                        verifications
                                                                                                               verifications
                                                                                                               techs/methods
                                                                                      9/30/04                  guidance
                                                                                                               database
                                                                                                               toolbox
                                                                                                   09/30/05     tech. guidance
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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                       Annual Performance Goals and Measures

Performance Measures                               FY2000     FY2001     FY2002     FY2003     FY2004     FY2005
                                                    Actuals      Actuals      Actuals     Actuals      Pres. Bud.   Pres. Bud.
from  intentional  introduction of  biological/chemical
contaminants
Water system-related case studies that provide a spectrum                                                                09/30/05     case studies
of  contingency  planning  situations  and  responses,
including one specifically focused on the National Capital
area


Baseline:        EPA's homeland security research provides appropriate, effective,  and rapid risk assessment guidelines and technologies to help
                decision-makers prepare for, detect, contain, and decontaminate building and water treatment systems against which chemical and/or
                biological attacks have been directed.  The Agency intends to expand the state of the knowledge of potential threats, as well as its
                response capabilities, by assembling and evaluating private sector tools and capabilities so that preferred response approaches can be
                identified, promoted, and evaluated for future use by first responders, decision-makers, and the public.  Examples of the types of
                products that will be available in FY 2005 include: sampling protocols, efficacy protocols, risk assessment tools, and threat scenario
                simulations.  These products will enable first responders to better deal with threats to the public and the environment posed by the
                intentional release of toxic or infectious materials.

                Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research  programs'
                relevance, quality, and successful performance to date, in-accordance with OMB's Investment Criteria for Research and Development.
                These evaluations will include an examination of a program's design to determine the  appropriateness of a  program's short-,
                intermediate-, and long-term goals  and its strategy for attaining these.  Reviewers will also qualitatively determine whether EPA has
                been successful in meeting its annual and long-term commitments for research.  Recommendations and results from these reviews will
                improve the design and management  of EPA research  programs and help to measure their progress under the Government
                Performance and Results Act (GPRA).
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                                            Environmental Protection Agency

                             FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                         Annual Performance Goals and Measures

GOAL: COMPLIANCE AND ENVIRONMENTAL STEWARDSHIP

Improve  environmental performance through compliance with environmental requirements, preventing pollution, and promoting
environmental stewardship.  Protect human health and the environment  by encouraging innovation and providing incentives for
governments, businesses, and the public that promote environmental stewardship.

       OBJECTIVE: IMPROVE COMPLIANCE

       By 2008, maximize compliance to protect human health and the environment through compliance assistance, compliance
       incentives, and enforcement by achieving a 5 percent increase in the pounds of pollution reduced, treated, or eliminated, and
       achieving a  5 percent  increase in the number  of regulated entities making improvements in environmental management
       practices. (Baseline to be determined for 2005.)

       Non-Compliance Redaction

       In 2005       Through monitoring and enforcement actions, EPA will increase complying actions, pollutant reduction or treatment, and improve
                    BMP.

       In 2004       EPA will direct enforcement actions to maximize compliance and address environmental and human health problems.

       In 2003       EPA directed enforcement actions to maximize compliance and address environmental and human health problems.

       In 2002       Based upon one measure, this APG was not met.

       In 2001       EPA directed enforcement actions to maximize compliance and address environmental and human health problems.

       In 2000       Deterred and reduced noncompliance and achieved environmental and human health improvement. 74.9% of concluded enforcement
                    actions required environmental or human health improvement, such as pollution reduction.

       Performance Measures                            FY2000    FY2001     FY2002    FY2003    FY2004    FY2005
                                                     Actuals     Actuals      Actuals    Actuals     Pres. Bud.   Pres. Bud.
       Millions of pounds of pollutants required to be reduced  714        660         261        600        350                   M pounds
       through enforcement actions settled this fiscal year.(core

                                                            68

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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures
optional)
Number of EPA inspections conducted (core required)

Pounds  of pollution estimated  to be  reduced, treated,
eliminated as a result of concluded enforcement actions.  ,

Percentage of concluded enforcement cases  (including
SEPs) requiring that pollutants  be reduced, treated, or
eliminated and protection of populations or ecosystems.

Percentage of concluded enforcement cases  (including
SEPs)   requiring  implementation  of  improved  env.
management practices.

Number of inspections,  civil investigations and criminal
investigations conducted.
Dollars  invested  in  improved  env.  performance or
improved BMP  as a result of concluded enforcement
actions (i.e., injunctive relief and SEPs)

Percentage of regulated entities taking complying actions,
as a result of compliance monitoring.
Percent  of concluded enforcement actions that require an
action  that  result in  environmental  benefits  and/or
changes in facility management or information practices.

Number of Criminal Investigations

Number of Civil Investigations
FY2000
Actuals


20123
FY 2001
Actuals

17812
FY2002     FY2003    FY2004    FY2005
Actuals     Actuals     Pres. Bud.   Pres. Bud.
17668       18,880       15,500
                                                             300
                                                             30
                                                             60
                                                             18,500
                                                             10
477
660
79


482
368
77


484
541
63



471
344
75



400

225
                                    Inspections
                                    Million
                                    Pounds
                                    Percentage
                                                             Percentage
                                                             insp&inv.
                                                             4 billion     Dollars
Percentage

Percent


Investigations
Investigations
Baseline:       Protecting the public and the environment from risks posed by violations of environmental requirements is basic to EPA's mission.  To
               develop a more  complete picture of the  results of the enforcement and compliance program, EPA has initiated a  number of
               performance measures designed to capture the results of reducing the amount of time for significant noncompliers to return to
               compliance, reducing noncompliance recidivism rates, and improvements in facility process and/or management practices through
               behavioral changes.  The baseline rates for many of these measures were established in FYOO. These measures will complement the

                                                            69

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures

               traditional enforcement measures of inspections and enforcement actions to provide a more complete picture of environmental results
               from the enforcement and compliance program.

Compliance Incentives

In 2005         Through self-disclosure policies, EPA will increase the percentage of facilities reducing pollutants or improving EMP.

In 2004         Increase opportunities through new targeted sector initiatives for industries to voluntarily self-disclose and correct violations on a
               corporate-wide basis.

In 2003         Increased opportunities through new targeted sector initiatives for industries to voluntarily self-disclose and correct violations on a
               corporate-wide basis.

In 2002         The number of facilities that participated in voluntary self-audit programs, disclosed  and corrected violations greatly exceeded the
               target.

In 2001         EPA increased opportunities through targeted sector initiatives for industries to use one of the self-disclosure policies.

In 2000         Increased entities self-policing and self-correction of environmental problems through use of small business and small community
               policies.
Performance Measures                                FY 2000     FY 2001
                                                     Actuals     Actuals
Number  of  facilities  that   self-disclosed   potential   2,200
violations.
Percentage  of audits  or other actions that result in the
reduction, treatment, or elimination of pollutants and the
protection of populations or ecosystems.
Percentage  of audits or other actions  that  result  in
improvements in env.  management practices.
Pounds of pollutants reduced, treated, or eliminated, as a
result of audit agreements or other actions.
Dollars invested in improving environmental management
practices as a result of audit agreements or other actions.
FY2002    FY2003     FY2004     FY2005
Actuals     Actuals      Pres. Bud.   Pres. Bud.
                                                  Facilities

                                     5            Percentage


                                     10           Percentage

                                     .25 million   Pounds

                                     2 million     Dollars
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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures

Performance Measures                               FY2000    FY2001     FY2002     FY2003    FY2004     FY2005
                                                    Actuals     Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
Facilities voluntarily self-disclose and correct violations              1754         1467        848         500                      Facilities
with reduced or no penalty as a result of EPA self-
disclosure policies.


Baseline:       EPA developed its Audit/Self-Policing Policy in 1995 to encourage corporate audits and subsequent  correction of self-discovered
               violations.  That Policy as well as the Small Business Compliance Policy were modified in FYOO. The Agency is working to expand
               the use of the Audit Policy through aggressive outreach to specific sectors.  In FY01 the performance measure was modified to reach
               settlements with 500 facilities to voluntarily self-disclose and correct violations. This same measure has been carried continued.

Regulated Communities

In 2005        Through compliance assistance, EPA will increase the understanding of regulated entities, improve Environmental Management
               Practices, and reduce pollutants.

In 2004        Increase the  regulated community's compliance with environmental  requirements through their expanded  use  of  compliance
               assistance.  The Agency will continue to support small business compliance assistance centers and develop compliance assistance
               tools such as sector notebooks and compliance guides.

In 2003        Increased the regulated community's compliance with  environmental requirements  through their expanded  use  of  compliance
               assistance.  The Agency continued to support small business compliance assistance centers and developed compliance assistance tools
               such as  sector notebooks and compliance guides.

Performance Measures                               FY 2000    FY 2001     FY 2002     FY 2003    FY 2004     FY 2005
                                                    Actuals     Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
Number of facilities, states, technical assistance providers                                       721,000     500,000                  Entities
or other entities reached through targeted  compliance
assistance (core optional)

Percentage of regulated entities seeking assistance from                                                                60          Percentage
EPA-sponsored CA centers  and clearinghouse  reporting
that they improved BMP as a result of their use of the
centers or the clearinghouse.

Percentage  of  regulated  entities  receiving  direct                                                                50          Percentage

                                                             71

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                                6-Year Performance Data
                                       Annual Performance Goals and Measures  .
Performance Measures
compliance assistance from EPA (e.g, training, on-site
visits) reporting that they improved BMP as a result of
EPA assistance.
% of regulated entities  seeking assistance from EPA-
sponsored CA centers and clearinghouse reporting that
they reduced, treated, or eliminated pollution as a result of
that resource,
% of regulated entities  seeking assistance from EPA-
sponsored CA centers and clearinghouse reporting that
they increased their understanding of env. rqmts. as a
result of their use of the resources.

% of regulated entities receiving direct CA from EPA
(e.g., training, on-site visits) reporting that they increased
their understanding of env. rqmts. as a result of EPA
assistance.
% of regulated entities receiving direct assistance from
EPA (e.g., training,  on-site visits) reporting that they
reduced,  treated, or eliminated pollution, as a result of
EPA assistance.
FY2000    FY2001     FY2002     FY2003    FY2004     FY2005
Actuals     Actuals      Actuals     Actuals     Pres. Bud.   Pres. Bud.
                                                              25          Percentage
                                                              75          Percentage
                                                              65          percentage
                                                              25          percentage
Baseline:        EPA provides clear and consistent descriptions of regulatory requirements to assure that the community can understand its obligations.
                EPA supports initiatives targeted toward compliance in specific industrial and commercial  sectors  or  with  certain  regulatory
                requirements. Compliance assistance tools range from plain-language guides, fact sheets, checklists and newsletters. New distribution
                methods include the on-line Clearinghouse.  In FY03, EPA is planning to  reach 475,000 facilities, states, or technical assistance
                providers through targeted compliance assistance efforts.
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                                      Environmental Protection Agency

                      FY 2005 Annual Performance Plan and Congressional Justification

                                          6-Year Performance Data
                                  Annual Performance Goals and Measures

OBJECTIVE: IMPROVE ENVIRONMENTAL PERFORMANCE THROUGH POLLUTION PREVENTION AND
INNOVATION

By 2008, improve environmental protection and enhance natural resource conservation 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 barriers, and the adoption of results-based,
innovative, and multimedia approaches.

Reduction of Industrial / Commercial Chemicals

In 2005        Prevent, reduce and recycle hazardous industrial/commercial chemicals and improve environmental stewardship practices.

In 2004        Prevent, reduce and recycle hazardous industrial/commercial chemicals and municipal solid wastes

In 2003        FY 2003 data will be avail, in 2005 to verify the quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or
              combusted for energy recovery in 2003, (normalized for changes in industrial production) will be reduced by 200 million pounds, or
              2%, from 2002.

In 2002        Data Lag

In 2001        No conclusions can be drawn regarding changes in TRI Non-recycled wastes from calendar year 2000 to calendar year 2001 without
              data.

In 2000    -    EPA exceeded its target of a reduction of 200 million pounds of TRI pollutants released.

Performance Measures

Reduction of TRI non-recycled waste (normalized)

Alternative feed  stocks, processes,  or  safer products
identified through Green Chemistry Challenge Award

Number of participants  in Hospitals  for a  Healthy
Environment

Quantity  of  hazardous chemicals/solvents eliminated

                                                      73
FY2000
Actuals
405
Million


FY 2001
Actuals
464
Million


FY 2002
Actuals
Not
Available


FY 2003
Actuals
Data Lag


FY 2004 FY 2005
Pres. Bud. Pres. Bud.
200
Million
210
2000
150 million
Lbs
Prod/proc (cum)
Participants
Lbs

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                                           Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
Performance Measures
FY 2000
Actuals
FY 2001
Actuals
FY2002
Actuals
FY2003
Actuals
FY2004     FY2005
Pres. Bud.   Pres. Bud.
through the Green.Chemistry Challenge Awards Program

For eco-friendly detergents, track the number of laundry
detergent formulations developed.
Percent reduction in Toxics Release Inventory  (TRI)
reported toxic chemical releases at Federal Facilities,
Percent reduction in both Toxics Release Inventory (TRI)
chemical releases to the environment from the business
sector per unit of production ("Clean Index")

Percent reduction in TRI chemicals in production-related
wastes generated  by the  business sector per  unit  of
production ("Green.Index").

Reduction in overall pounds of pollution.

Annual cumulative quantity of water conserved
Billions of gallons of water saved.

Billions of BTUs of energy conserved.
                                                 36
                                                             32%
                                                             20%
                                                             10%
                                                             Formulations
                                                             Releases (Cum)
                                                             Releases (Cum)
                                                             Waste (Cum)
                                                             34 Billion     Pounds (Cum)

                                                             134 Million   Dollars (Cum)

                                                             1.5 Billion    Gallons (Cum)

                                                             143 Billion    BTU (Cum)
Baseline:       The baseline for the TRI non-recycled wastes measure is the amount of non-recycled wastes in 2001 reported FY2003. The baseline
               for eco-friendly detergents is 0 formulations in 1997.  The baseline for the alternative feed stocks / processes measure is zero in 2000.
               The baseline for the quantity of hazardous chemicals / solvents measures is zero pounds in the year 2000. The baseline for the
               hospitals measure is zero in FY2001. The baseline reference point for reductions of pollution and conservation of BTUs and water will
               be zero for 2003. The baseline for money saved will be 2003. The baseline for reduction in CO2 will be zero for 1996. The baseline
               for the Clean and Green Index would be 2001 levels. The baseline for chemical releases is 2001 level.  The baseline for chemical
               production related wastes is 2001 level.  Note:  Several  output measures were changed to internal-only reporting status in 2005.
               Annual Performance measures under development for EPA's Environmentally Preferable Purchasing program for the FY2006 Annual
               Performance Plan.
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                                        Environmental Protection Agency

                       FY 2005 Annual Performance Plan and Congressional Justification

                                             6-Year Performance Data
                                    Annual Performance Goals and Measures
Innovation Activities
In 2005         Performance Track members collectively will achieve an annual reduction of 600 million gallons in water use; 2.5 million in
               MMBTUs in energy use; 15,000 tons of solid waste; 6,000 tons of air releases; and 10,000 tons in water discharges, compared with
               2001 results.

Performance Measures                             FY2000     FY2001     FY2002    FY2003     FY2004    FY2005
                                                 Actuals     Actuals      Actuals     Actuals      Pres. Bud.   Pres. Bud.
Specific annual reductions in five media/resource areas:                                                            5           media
water use, energy use, solid waste, air releases, and water                                                                        reductions
discharges.


Baseline:       The baseline year is 2001.  The FY 2005 specific reductions planned are that Performance Track members collectively will achieve
               annual reductions, compared with 2001, of 600M gallons of water used; 2.5M MMBTUs of energy used; 15,000 tons of solid waste;
               6,000 tons of air releases; and 10,000 tons of water discharges.

OBJECTIVE: BUILD TRIBAL CAPACITY

Through 2008, assist all federally recognized tribes in assessing the condition of their environment, help in building their
capacity to implement environmental programs where needed to improve tribal health and environments, and implement
programs in Indian country where needed to address environmental issues.

Tribal Environmental Baseline/Environmental Priority

In 2005         Assist federally recognized tribes  in assessing the condition of their environment, help in building their capacity to implement
               environmental programs where needed to improve tribal health and environments, and implement programs in Indian country where
               needed to address environmental issues.

In 2004         Percent of Tribes will have an environmental presence (e.g., one or more persons to assist in building Tribal capacity to develop and
               implement environmental programs.

In 2003         In 2003,  AIEO evaluated non-Federal sources of environmental data pertaining to conditions in  Indian Country to enrich the Tribal
               Baseline Assessment Project.

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 In 2002

 In 2001

 In 2000
                           Environmental Protection Agency

         FY 2005 Annual Performance Plan and Congressional Justification

                               6-Year Performance Data
                       Annual Performance Goals and Measures

A cumulative total of 331 environmental assessments have been completed.

Baseline environmental assessments were collected for 207 Tribes.

16% of tribal baseline information was collected by enabling a pilot demonstration model to access and display tribal information
from  EPA  databases and  data  collection surveys  containing environmental  information.  However,  only four EPA/Tribal
Environmental Agreements (TEAs) were signed.
 Performance Measures

 Percent of Tribes with delegated  and non-delegated
 programs (cumulative).
 Percent of Tribes with EPA-reviewed  monitoring and
 assessment occurring (cumulative).

 Percent  of Tribes   with  EPA-approved  multimedia
 workplans (cumulative).

 Increase tribes' ability to develop environmental program
 capacity of federally recognized tribes that have access to
 an environmental presence.

 Develop or integrate EPA and interagency data systems to
 facilitate  the use of EPA Tribal Enterprise Architecture
 information  in setting  environmental  priorities  and
 informing policy decisions.
•Eliminate data  gaps  for environmental  conditions  for
 major  water, land,  and air  programs as determined
 through the availability of information in the EPA Tribal
 Enterprise Architecture.

 Increase  implementation of environmental programs in
 Indian country  by program delegations, approvals, or
 primacies -issued  to  tribes and direct implementation
 activities by EPA.

 Increase  the  percent of  tribes with  environmental
 monitoring  and  assessment  activities under   EPA-
                                    FY2000     FY2001     FY2002    FY2003    FY2004    FY200S
                                    Actuals      Actuals      Actuals     Actuals     Pres. Bud.   Pres, Bud.
                                                                                   25%                    Tribes
                                                                                   20%


                                                                                   18%
                                                                                               90
                                                                                                159
Tribes


Tribes


% Tribes



Systems




% Data Gap




Programs




% Tribes
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                                         Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                             6-Year Performance Data
                                     Annual Performance Goals and Measures
Performance Measures

approved quality assurance procedures.
Increase the percent of tribes w/ multimedia programs
reflecting traditional use of natural resources.

Tribal environmental baseline information collected

Tribes  with Tribal/EPA environmental agreements or
identified environmental priorities

Environmental assessments for Tribes, (cumulative)

Non-federal sources of environmental data pertaining to
conditions in Indian Country.
FY2000
Actuals
16
FY 2001
Actuals
            207
FY 2002
Actuals
            331
FY2003
Actuals
FY 2004     FY 2005
Pres. Bud.   Pres. Bud.
                                   20
                                               % Tribes


                                               % Baseline

                                               Tribes


                                               Tribes, etc.

                                               Data sources
Baseline:       There are 572 tribal entities that are eligible for GAP program funding.  These entities are the ones for which environmental
               assessments of their lands will be conducted.


OBJECTIVE: ENHANCE SCIENCE AND RESEARCH

Through 2008, strengthen the scientific evidence and research supporting environmental policies and decisions on compliance,
pollution prevention, and environmental stewardship.

Research

New Technologies

In 2005         Complete thirty verifications and four testing protocols for a program cumulative total of 280 verifications and 88 testing protocols for
               new environmental technologies so that, by 2009, appropriate and credible performance information about new, commercial-ready
               environmental technology is available that influences users to purchase effective environmental technology in the US and abroad.

In 2004         Verify 35 air, water, greenhouse gas, and monitoring technologies so that States, technology purchasers, and the public will have
               highly credible data and performance analyses on which to make technology selection decisions.
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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures
In 2003
In 2002
In 2001
Developed 10 testing protocols and completed 40 technology verifications for a cumulative Environmental Technology Verification
(ETV) program total of 230 to  aid industry,  states, and consumers hi choosing effective technologies to  protect the public and
environment from high risk pollutants.

EPA formalized generic testing protocols for technology performance verification, and provided additional performance verifications
of pollution prevention, control and monitoring technologies in all environmental media.

EPA developed, evaluated, and delivered technologies and approaches that eliminate, minimize, or control high risk pollutants from
multiple sectors.  Delivery of the evaluative report on the Environmental Technology Verification (ETV) pilot program is delayed
until FY 2002.
Performance Measures

Deliver  a  Report  to  Congress  on  the  status  and
effectiveness   of  the   Environmental   Technology
Verification (ETV) Program during its first five years.

Complete 20 stakeholder approved and peer-reviewed test
protocols in all environmental  technology  categories
under ETV,  and provide them to testing organizations
world-wide.
Verify and provide information to  States,  technology
purchasers,  and the public on 40 air, water, pollution
prevention and monitoring  technologies  for an ETV
programmatic total of 230 verifications.
Complete an additional  10  stakeholder approved and
peer-reviewed  test  protocols  in  all  environmental
technology categories under  ETV, and provide them  to
international testing  organizations.

Through the ETV program, verify the performance of 35
commercial-ready environmental technologies.

Verifications completed

Testing protocols completed
                                    FY2000
                                    Actuals
FY 2001
Actuals
0
FY 2002
Actuals
                                                            20
FY 2003
Actuals
FY 2004
Pres. Bud.
FY 2005
Pres. Bud.
                                                                        40
                                                                         10
                                                                                     35
                                                                                                 15

                                                                                                 2
                                                                                                             Report
                                                            Protocols
                                                            Verifications
                                                            Protocols
                                                             Verifications


                                                             Verifications

                                                             Protocols
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                                          Environmental Protection Agency

                        FY 2005 Annual Performance Plan and Congressional Justification

                                               6-Year Performance Data
                                      Annual Performance Goals and Measures


Baseline:       Actual environmental risk reduction is directly related to performance and effectiveness of.environmental technologies purchased and
               used.  Private sector technology developers produce almost all the new technologies purchased in the U.S. and around the world.
               Purchasers  and  permitters of environmental  technologies need an independent,  objective, high quality source of performance
               information in order to make more informed  decisions;  and vendors with innovative, improved, faster and cheaper environmental
               technologies need a reliable source of independent evaluation to be able to penetrate the environmental technology market.  Through
               FY 2004, EPA's Environmental Technology Verification (ETV) Program will have verified approximately a programmatic total of
               265 technologies, as well as making data on their performance  available for public use, and will have developed 86 protocols. In FY
               2005, the ETV Program will complete 30 additional verifications and four testing protocols for a cumulative total of 280 verifications
               and 88 testing protocols since ETV begin in 1995.

               Beginning in FY 2005, regular evaluations by independent and external panels will provide reviews of EPA research programs'
               relevance, quality, and successful performance to date, in accordance with OMB's Investment Criteria for Research and Development.
               These evaluations will  include an examination  of  a program's design to determine the  appropriateness  of  a  program's short-,
               intermediate-, and long-term goals and its strategy for attaining these.  Reviewers will also qualitatively determine whether EPA has
               been successful in meeting its annual and long-term commitments for research.  Recommendations and results from these reviews will
               improve the design and management of EPA  research programs and help to  measure  their progress under the Government
               Performance and Results Act (GPRA).
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Special Analysis

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Environmental Protection Agency
2005 Annual Performance Plan and Congressional Justification
Table of Contents
Special Analysis
      Annual Performance Plan Components	,	SA-1
      Major Management Challenges	SA-3
      EPA User Fee Program	SA-15
      Working Capital Fund	SA-17
      STAG—Appropriation Account	SA-18
      STAG—Categorical Grants Program	SA-19
      STAG—Statutory Authority and Eligible Uses	SA-25
      STAG—Infrastructure Financing	SA-37
      Program Projects	SA-41
      Program Assessment Rating Tool (PART)	SA-50
      Subject Index	SA-64

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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                 ANNUAL PERFORMANCE PLAN COMPONENTS
Introduction

      EPA's Annual Performance Plan, as for the past 6 years, is integrated into the annual
Budget request.  To fully explain the Agency's resource needs, the Budget contains annual
performance goals and performance measures that the Agency uses to achieve its results.  EPA
submits a stand-alone Annual Plan to Congress to meet the concern expressed in GPRA that
"annual plans not be voluminous presentations  describing performance for every activity. The
Annual Plan and reports are to inform, not overwhelm the reader."  (See the Special Analysis
section of this document for the Annual Performance Plan components.)
Annual Performance Plan Organization

       The Annual Performance Plan submission to Congress contains the following elements of
the Agency's Annual Performance Plan and Congressional Justification:

       I.     GOALS
             Goal Statement
             Goal Resource s Summary
             Background and Context
             Means and Strategy
             Highlights
             Strategic Objectives and Annual Performance Goals
             External Factors

       II.    OBJECTIVES
             Objective Statement
             Program Project Resources Summary
             Results to be Achieved Under the Objective
             Program/Projects
             FY 2005 Request
             FY 2005 Change from FY 2004
             Annual Performance Goals and Performance Measures:
             Verification and Validation of Performance Measures
             Efficiency Measures/Measurement Development Plans
             Coordination with Other Agencies
             Statutory Authority

       HI.   ENABLING SUPPORT PROGRAMS
             Resource Summary
             Explanation of Changes
             Annual Performance Goals and Performance Measures

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                  Environmental Protection Agency

    FY 2005 Annual Performance Plan and Congressional Justification
IV.    SPECIAL ANALYSIS
      Annual Performance Plan Components
      Major Management Issues
      User Fees
      Working Capital Fund
      STAG — Appropriations
      STAG ~ Categorical Grants
      STAG - Statutory Authority and Eligible Uses
      Program Projects
      PART Summary
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            FY 2005 Annual Performance Plan and Congressional Justification

                       MAJOR MANAGEMENT CHALLENGES

       In FY 2003 EPA strengthened its ability to  achieve environmental and human health
results by addressing its major management challenges.   For the second year, the Agency
reported no  material weaknesses under the Federal Managers Financial Integrity Act (Integrity
Act).1   EPA also resolved in FY 2003  almost one third of its less  severe, internal Agency
weaknesses  tracked by the Administrator.  To identify management issues and monitor progress
in addressing them, Agency senior leaders use a system of activities that includes:  internal and
independent reviews, program evaluation and measurement; audits by the General Accounting
Office (GAO)  and  EPA's  Office  of Inspector General (OIG); and input from the  Office of
Management and Budget (OMB).  These efforts ensure that program activities are effectively
carried  out  in  accordance  with applicable laws and sound management policy,  and provide
reasonable assurance that  Agency resources are protected against fraud, waste, abuse  and
mismanagement.

       In FY 2003  OMB recognized EPA's  success hi  correcting  material weaknesses, which
contributed  to  the  Agency achievement of a "green" status score  in Improved  Financial
Performance, a key initiative  of the President's Management Agenda.2 Following are  brief
descriptions and summaries on efforts underway to  address the management challenges facing
the Agency.

Challenges  in Addressing the Air Toxics Regulatory/Residual Risk Program

       While EPA has made substantial progress hi issuing Phase 1 air toxics standards, it was
over two years behind in fulfilling statutory responsibilities.  From FY 2001 to FY 2003, this
issue has been  an Integrity Act weakness, and from FY  2002 to FY 2003 an OIG management
challenge.

       EPA has made significant progress in  correcting the Agency level weakness on Meeting
Statutory Deadlines for the Air Toxics Regulatory/Residual Risk Program.  Based on this
progress, the Agency is on target to complete all of its  10-year Maximum Achievable Control
Technology (MACT) standards by February 27, 2004.3  In addition to strengthening the air
toxics  program to  prevent further delays  in  issuing the  MACT,   EPA  has developed a
comprehensive, integrated  air  toxics program that better meets long term goals by addressing
risks from all sources of toxics—major, area, mobile and indoor sources. The Agency continues
to shift the  emphasis of its air toxics program to a risk-based approach that addresses specific
needs of the various categories of residual risk and their special handling in the Clean Air Act.
EPA is developing site-specific  risk  assessment   guidance4  that will allow  a facility to
demonstrate whether the health risks it poses to the surrounding community are low enough to
1  Federal Managers Financial Integrity Act of 1982, Public Law 97-255 (September 8, 1982).
2  Office of Management and Budget, The Executive Office of the President, Federal Management, The President's Management
Agenda. Available at http://www.whitehouse.gov/omb/budintegration/pma index.html.
3  U.S. EPA, National Emission Standards for Hazardous Air Pollutants. Available at http://wv>'\v.epa.gov/ttn./at\v/eparuies.html.
4  Air Toxics Website - hto://www.epa.go^ttm'atw/.
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            FY 2005 Annual Performance Plan and Congressional Justification

comply with the residual risk standards. The Agency is also continuing to analyze the risk of the
remaining 2-,  4-, and 7-year MACT source categories.  As part of the effort to address concerns
about data gaps  for toxicity and different data collection and analysis methods, EPA is also
developing an efficiency measure on the cause-and-effect relationships between the air toxics
program and changes in environmental conditions or cancer incidence.  In addition, the Agency
is strengthening its sound scientific foundation for an effective risk-based program. This year,
the Science Advisory Board (SAB) completed an external review of the Agency's air toxics
research strategy.5  EPA  is also working with state and local agencies hi a joint Air Toxics
Monitoring Steering Committee to design a national toxics monitoring network.  The SAB has
expressed clear  support  to the Agency's  approach for developing this capacity  through
monitoring pilots carried out under the sponsorship of the joint committee.  The data analysis
phase of the initial assessment work, reflected hi a 10-city air toxics monitoring pilot project,
was completed in mid-2003.6   Data from this effort  is helping to complete the design of a
network for a national air toxics characterization in FY 2004.  While EPA works to develop
better indicators  of air toxic risk reduction, it continues to effectively reduce air toxics, which
since 1990 have been reduced by 1.5 million tons per year, a 34% reduction.7  When all the
MACT rules are fully implemented, in addition to efforts by states and industry, toxic emissions
from large industrial facilities will decrease by 1.7 million tons per year or 63% from 1990-1993
baseline levels.8

Reduce the Backlog of National Pollutant Discharge Elimination System (NPDES) Permits9

       Expired NPDES permits might not reflect the most recent applicable effluent guidelines,
water quality standards, or Total Maximum Daily Loads posing a threat to the environment.
Necessary improvements hi water quality could be delayed if high-quality permits are not issued
timely.   From FY 2001 to FY 2003 this issue has been an Integrity Act weakness and an OIG
management challenge.

       EPA's strategy for improving the program has significantly reduced the backlog.  84
percent of major facilities  have current permits (63 percent of the targeted reduction). 82 percent
of individual minor facilities have current permits (79 percent  of the targeted reduction).  When
facilities covered by non-storm water general permits are included hi the count of minors, 85
percent have current permits (87 percent of the targeted reduction).
5 Science Advisory Board Website - http:/7-ftlww.epa.gov/sciencel/03project/proi0328.htni.
6 Technology Transfer Website - http://www.epa.gov/ttn/amtic/
7 U.S. EPA, Office of Air and Radiation. Analysis based on emission projections using the EMS-HAP version 2 model and the
2000 version of the 1990/1993 baseline inventory. EMS-HAP available at http://www.epa.gov/scramOOi/tt22.htmtfaspen .
Projection-related inputs available at http://w\vw.epa.gov/ttii/chie£/emch/projection/Jemshap.hmii.
8 U.S. EPA, Office of Air and Radiation. Analysis based on emission projections using the EMS-HAP version 2 model and the
2000 version of the 1990/1993 baseline inventory. EMS-HAP available at hitp ://www.epa. go v/scratnOO 1 /tt22. htm#aspen .
Projection-related inputs available at http:/7viAvw.epa.gov./ttn./chie£/emch,/prqiectioa/eiiisnap.html.
9 U.S. EPA, Office of Water, National Pollutant Discharge Elimination System (NPDES), Backlog Reduction. Available at
http;//cfpub.epa.gov/npdes/pei'mitissuance/backlog.cf!Ti.
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            FY 2005 Annual Performance Plan and Congressional Justification

       In addition to significantly reducing the backlog, EPA is continuing to improve permit
efficiency and quality.  EPA's recently revised strategy includes increased focus on: effective
prioritization of permits for environmental  results, stronger NPDES  program  integrity, and
increased efficiency through permit streamlining. To prioritize permits, in FY 2003, EPA pilot
tested the use of a permit prioritizatidn checklist  and is  working with regions and states  to
finalize it.  EPA is also reviewing permit data quality, increasing the percentage of permit
records with locational data to better characterize the environmental impact, and modernizing
PCS for anticipated implementation in FY 2006. To strengthen NPDES program integrity, EPA
is holding regular training courses for permit writers, and working with regions and states  to
develop and pilot  quality management  tools, including regional and state self assessments,
quarterly trend reports, and state NPDES program profiles.  As part  of the effort to increase
efficiency, the Agency is bundling lower priority permits in a streamlined process, facilitating
watershed-based permitting approaches, encouraging use of general permits, and developing and
distributing  electronic permit application and permit writing tools.  In 2003,  EPA also  made
available, through the internet, scanned copies of major permits and fact sheets.  The web-
accessible permits improve access to information, provide models and improve data sharing.

Management of Biosolids

       OIG raised  concerns  regarding the  scientific studies regarding risk and the resources
devoted to implementing the biosolids program. From FY 2002 to FY 2003 this issue has been
an OIG management challenge.

       EPA  continues  to meet its statutory obligations  under the Clean Water Act (CWA)
pertaining to sewage sludge while it addresses concerns about the adequacy of the sewage sludge
rule, significantly expands biosolids-related research, and continues to actively address biosolids
violations and enforce safe land-application of biosolids to prevent risk to human health or the
environment.  EPA set into motion an inclusive process to address concerns by establishing  an
intra-Agency committee to develop  a draft Agency response to  National  Research Council
(NRC)  2002 recommendations for additional research.10 In April 2003 EPA published its draft
response in the Federal Register for public comment.11 and announced its final response and
strategy in the Federal Register on December 31, 2003.n  The December 31, Federal Register
notice also included the final decision on identifying additional pollutants in biosolids that may
warrant further regulation §405(d)(2)(C) of the CWA.  It  describes a multi-pathway screening
risk analysis from which EPA identified 15 pollutants for further evaluation and data gathering to
determine whether they may warrant regulation under the CWA.

        On October 17, 2003, EPA announced its final  decision not to regulate dioxins in land
applied sewage sludge.13  This decision was based on the results of a peer reviewed multi-
pathway risk assessment that took five years to develop and finalize.  The  results of this risk
10  National Research Council, Division on Earth and Life Studies, Board on Environmental Studies and Toxicology, Biosolids
Applied to Land: Advancing Standards and Practices (2002). Available at http://www.nap.edu/catttlog/10426.html.
"  Federal Register, April 9, 2003 at 68 Federal Register 17379-17395.
12  Federal Register, December 31,2003 at 68 Federal Register 75531-75552
13  Federal Register, October 24, 2003 at 68 Federal Register 61084-61096.


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            FY 2005 Annual Performance Plan and Congressional Justification

assessment demonstrated that the risk is small of new cancers from exposure to dioxins for a
highly exposed population of farm families that use sewage sludge on their farms as a fertilizer
and soil amendment. EPA also evaluated the potential risks to wildlife from exposure to dioxins
from  land applied sewage  sludge.  The results  of this evaluation indicated that there are no
significant ecological impacts.

       EPA is undertaking research and analyses initiatives to improve and expand its scientific
understanding and management of the biosolids program. In addition, EPA has taken actions to
address biosolids violations  and will continue to take actions to address instances  where
biosolids pose an endangerment to human health or the environment. From FY 1995 to FY2002
EPA  undertook over 500  enforcement  actions, and from  FY  2000 to FY 2002 conducted
approximately 380  inspections.14  To  assist the states and regions in their oversight  of the
biosolids program,  EPA has, either in place or in development, tools to assist  and promote
compliance  with biosolids  regulatory  requirements.   For example, the Agency  recently
developed revised guidance and training on NPDES inspections,  including biosolids.15  EPA is
also continuing to work with states as it modernizes  the Permit Compliance System (PCS) to
allow for more effective program oversight.  As part  of the PCS modernization, a separate
workgroup  (including states and EPA) was devoted to the data needed to manage the biosolids
program.16  The anticipated implementation date for the modernized PCS is December 2005. In
addition to this national system, states and facilities may  choose to  use the Biosolids Data
Management System (BDMS) as an additional management tool.

       EPA also has been working closely with the National Biosolids Partnership to develop
and pilot test a voluntary system for biosolids which seeks to enhance biosolids management
from  pretreatment  through  processing  and ultimate  disposition.  Currently  there  are 62
wastewater treatment authorities hi the EMS and EMS development program.  At the end of
Calendar 2003, the first two authorities, Orange County, California and the City of Los Angeles
California attained EMS status with the awarding of EMS certificates by the National Biosolids
Partnership.  The Agency has also been actively  coordinating with states and regions through a
cross-office Biosolids Program Implementation Team. EPA also continues to conduct state of
the biosolids  workshops. The Agency held the most recent conference on the "State of Science
for the Land Application  of Biosolids" hi January, 2004.   In cooperation  with the U.S.
Department of Agriculture and many other stakeholders, EPA plans to  conduct field studies at
selected locations to assess potential emissions of certain chemical and microbial agents from
biosolids land-application sites.
14 U.S. EPA, Office of Enforcement and Compliance Assurance, Permit Compliance System (PCS) database.
15 U.S. EPA, Office of Enforcement and Compliance Assurance, Clean Water Act/NPDES Computer Based Inspector Training
CD ROM, August, 2003.
16 U.S. EPA, Office of Enforcement and Compliance Assurance, ICIS Phase II, Permit Compliance System Modernization,
Final Design Document, September, 2003.

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            FY 2005 Annual Performance Plan and Congressional Justification

EPA's Working Relationships with States

       The  National Environmental Performance Partnership System  (NEPPS)17  established
working EPA-state partnerships designed to focus scarce resources on priority environmental
problems.  Under NEPPS, jointly-developed priorities, strategies, and measures for assessing
progress are articulated in performance partnership agreements (PPAs). Performance partnership
grants  (PPGs),18 a primary tool for implementing NEPPS, allow states  and Tribes to combine
multiple EPA grants  into one grant directed to their needs and priorities.  From FY 2001 to FY
2003, NEPPS implementation has been a GAO or OIG major management challenge.

       The  Agency  continues its  long-term commitment to working  with state agencies to
improve  management  of national environmental programs and  promote  implementation of
NEPPS.  A joint EPA-Environmental Council of States (ECOS) workgroup was established in
the spring of 2003 to  further advance joint planning and performance partnerships.  After a series
of working sessions,  EPA and state leaders agreed to better align EPA national, regional,  and
state planning processes and facilitate more meaningful joint priority setting.  To strengthen the
role of PPAs as the defining document for the state-EPA partnership, they also agreed upon the
essential elements of PPAs. Implementation will begin hi 2004, with particular focus on piloting
the unproved processes with a subset of states that have expressed an interest and commitment to
participate during the FY 2005 planning cycle.  The EPA-ECOS workgroup will monitor the
initial effort to ensure continuous improvement.

       The  Performance Partnership  Steering Committee  comprised of senior leaders from
across  EPA, meets periodically to provide overall direction  and resolve  policy issues related to
improving performance partnerships. Responding to a major need identified during a joint EPA-
state meeting on PPGs in January 2003, EPA developed a PPG training course that was delivered
to EPA and state officials hi a series of workshops across the country during the year.  In FY
2004, EPA will focus  on addressing issues raised during the training sessions.  These issues
include timing of grants, use of carryover funds, joint evaluation,  and  mitigating conflicts
between  performance partnership principles and categorical grants guidance.  Regional  and
program  office NEPPS coordinators hold regular conference calls to  share experiences  and
discuss issues, and the  Agency continues periodic reporting on the status of PPAs and PPGs to
keep the  states, Congress, and other stakeholders and partners informed.  With these activities
serving as the foundation for further progress, EPA is committed to continuing training, working
group  sessions, joint reviews, and  developing  and implementing a strategy to  market the
successes and benefits of performance partnerships.
17 U.S. EPA, Office of Congressional and Intergovernmental Relations, Performance Partnership. Available at
http://www.epa.gov/ocirpage/nepps/index.htni.
18 U.S. EPA, Office of Congressional and Intergovernmental Relations, Performance Partnership. Available at
http://www.epa.gov/ocirpage/nepp&''iudex.htm.
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           FY 2005 Annual Performance Plan and Congressional Justification

Information System Security

       EPA continues to improve the management and oversight of the Agency information
security program with the development and  implementation of effective information security
tools and processes that mitigate risks to the Agency's data and systems. From FY 2001 to FY
2003 this topic has been an Integrity Act weakness, and GAO or OIG management challenge.

       EPA has successfully demonstrated and maintained a  high level of security for its
information resources and environmental data.  In FY 2002, the Agency developed and began
implementing a comprehensive strategy to systematically address security-related deficiencies in
accordance with the Government Information Security Reform Act,19 and in FY  2003, the
Agency validated the effectiveness of these corrective actions.  The corrective actions include
ensuring annual security  self-assessments of Agency general support systems and major
applications in accordance with Federal Information Security Management Act20 and relevant
OMB directives; conducting in-depth analyses of Capital Planning and  Investment  Control
system security plans to determine that the controls provide the anticipated protections; ensuring
regular  risk assessments  and follow-up  on major applications and general support systems;
monitoring Agency networked computer  servers for compliance  with security standards and
sending quarterly reports to senior officials summarizing their compliance status; conducting
internal and external network penetration testing; and monitoring EPA's firewall and intrusion
detection system to ensure security of the Agency's cyber perimeter.

       EPA plans  to sustain information  security  improvements  through consistent security
control implementation, ongoing evaluation, and regular testing to ensure that the policies and
procedures are effective.  In FY 2004, the Agency will focus on  establishing a robust quality
assurance program,  improving  the security training program for staff with significant security
responsibilities, ensuring contingency plans are updated, and establishing a process to ensure that
the Agency's  information  security practices are  implemented throughout  the life cycle of
information technology systems.

Information  Resources  Management  (IRM)  and Data  Quality/Environmental  and
Performance Information Management

       To  acquire,  manage, and deliver  the  data the Agency needs to make decisions and
monitor progress against environmental goals, EPA continues to improve data management and
use by providing tools and planning processes for effective data sharing, data integration, and
identification of key data gaps. From FY 2001 to FY 2003 this  issue has been an Integrity Act
weakness and a GAO and OIG management challenge.
19 FY 2001 Defense Authorization Act, Public Law 106-398, Title X, Subtitle G.
20 FY 2003 Electronic Government Act, Public Law 107-347, Title III.
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                            Environmental Protection Agency

            FY 2005 Annual Performance Plan and Congressional Justification

       EPA's  progress includes  completion  of the  EPA  Strategic  Information  Plan,  A
Framework for the Future?1 promulgation of six Reinventing Environmental Information data
standards;22 development  of the  Data Architecture, a component  of the  Agency Enterprise
Architecture (EA);23 development of the draft Data  and Information Quality Strategic Plan;24
completion of a  second set of six new data standards;22 and improvement of data collection
processes through the Central Data Exchange.25  EPA is working  with the states and tribes,
through the Environmental Data Standards Council, to develop data  standards for the exchange
of environmental data. To facilitate data standard implementation, EPA has established technical
and business  guidelines  for the  use of  standard data  elements, and  is providing technical
assistance.  Building on the FY 2003 Draft Report on the Environment,26 EPA is continuing the
Environmental Indicators Initiative, a long-term effort to  work with stakeholders, partners and
the public to identify and fill key data gaps.

       All EPA organizations  have approved  Quality Management  Plans, and are focusing  on
implementing and integrating quality procedures into business practices.  During 2004, EPA will
continue its efforts with states and tribes to develop the National Environmental Information
Exchange Network, a web-based system that enables electronic data exchanges that improve data
quality and timeliness, reduce burden and costs, and improve public  access.  The Agency plans
for at least 25  states to have Exchange servers by the end of FY 2004.

       EPA efforts to improve oversight and management of Agency laboratory quality systems
include developing a web site of best practices of laboratory policies, procedures, tools and
training to improve capacity to produce quality environmental data.  The Agency's Forum  on
Environmental Measurements  (FEM) developed a draft policy to ensure and demonstrate the
competency of Agency laboratories.   The draft policy,  currently undergoing Science Policy
Council  review,  requires  Agency laboratories to become accredited and participate in inter-
laboratory comparison  studies to demonstrate continuing competency.   The draft  policy also
mandates  assessments  by external  organizations or assessors in cases  where  appropriate
accreditation programs do not exist.

Making Regulatory Innovations Successful27

       EPA  has  invested  considerable  time and resources  to  "reinvent"  environmental
regulations within the  existing statutory  framework,  but GAO  is  concerned  that EPA  must
21 EPA Strategic Information Plan: A Framework for the Future. Available at
wjvw.epa.gov/bei/pdffStrategic.Information Plan 7 29 02.pdf
22 U.S. EPA, Environmental Data Registry. Available at http://www.epa.gov/edr/
23 U.S. EPA, DRAFT Data and Information Quality Strategic Plan (January 2002). Available from the Office of Environmental
Information's Office of Planning, Resources, and Outreach.
24 U.S. EPA, EPA Enterprise Architecture, Version 1.0 (January 2003). Available from the Office of Environmental
Information's Office of Technology and Operations Planning.
2S U.S. EPA, Central Data Exchange. Available at www.epa.gov/cdx/'
26 U.S. EPA Draft Report on the Environment 2003 (EPA-260-R-02-006, June 2003), available at
http://www.epa.gov/mdicators/roe/mdex.htni.

27 U.S. EPA National Center for Environmental Innovation.  Available at http://www.epa.gov/innovation.
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           FY 2005 Annual Performance Plan and Congressional Justification

address statutory obstacles in order for innovative regulatory programs to succeed.  In FY 2002
and FY 2003, regulatory reinvention has been a GAO major management challenge.

       EPA is committed to continue testing and implementing innovative approaches to
achieve environmental results.  This continued commitment allows progress to occur in the near
term, while gaining experience in how new legislative authority could address impediments
without undermining the benefits  of today's environmental statutes or sacrificing important
safeguards in  the Nation's environmental protection  system.   In  2003, EPA continued and
enhanced its robust approach to regulatory innovation.  For example, EPA has been instrumental
in its facilitation of the transfer of the Environmental Results Program (ERP), an innovation
model originated in Massachusetts self-certification innovation launched in the late  1990's, to
other states and  environmental problem areas.   ERP  interlinks the  three components of
compliance assistance,  self-certification and performance measurement.  ERP  compliance
assistance brings together all regulatory requirements and pollution prevention best management
practices in a "plain English" workbook.  Facility self-certification can be single or multimedia
based and  is prepared in a user friendly format.  ERP performance measurement is based on
statistically valid inspection protocols and  allows tracking whole business  sectors as well
individual facilities. The three components are interlinked so workbook sections relate directly
to self-certification questions and inspection protocols for performance measurement and
tracking. The Massachusetts Department of Environmental Protection (MA DEP) has found that
ERP reduces cost and burden for regulators and regulated entities. MA DEP estimates that ERP
has resulted in dry cleaners reducing their perchloroethyane emissions by 22 tons, and printers
their volatile  organic compound emissions  by 4 tons.  Also, underground storage tanks ERP
projects are being implemented in several states as well as other small-business dominated
sectors.

       EPA continues to work with the Environmental Council of the States (ECOS) to improve
the EPA processes needed to create regulatory  flexibility for state innovation projects.  For
example, EPA and ECOS are developing a Joint Workplan designed to align EPA and state
innovation efforts so they address the same priority  environmental problems, leveraging  the
combined efforts of EPA and the states, and driving innovation into core state environmental
programs.  EPA also successfully piloted a state  innovation grant competition and awarded
several state grants  to provide seed  money  to the  state-initiated  projects.   Based  on an
independent evaluation of the first-year innovation competition, the Agency is expanding this
state  innovation funding idea.   The second solicitation was issued in October 2003  and is
targeted at priorities identified in consultation with states and other stakeholders. This kind of
program,  and  the discussion between  state environmental commissioners and  EPA  senior
leadership, can inform the legislative process, and potentially support a clearer understanding of
how specific legislative provisions could be designed to overcome perceived barriers in existing
statutes.  The greatest potential and anticipated  benefit of this  innovation work is effectively
taking lessons learned during experimental pilots and applying  them to  our national and state
programs, and potentially making regulatory change. EPA is working with the states in the grant
program to measure and evaluate the results of the state pilots.   EPA describes  a specific
strategic target for the State Innovation Grant Program in the Agency's Strategic Plan for 2003-
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            FY 2005 Annual Performance Plan and Congressional Justification

2008 to measure improvement in environmental protection resulting from alternative approaches
to environmental protection.

Human Capital Strategy Implementation/Employee Competencies

       EPA recognizes the importance of placing the right people, with the appropriate skills,
where they are needed.   The Agency needs a systematic  approach to workforce planning,
supported by reliable and valid workforce  data,  and should  focus on  sustaining adequate
scientific expertise.  From FY 2001 to FY 2003 this issue has been an Integrity Act weakness,
and a GAO and OIG management challenge.

       EPA  made significant progress toward addressing this weakness and  achieving the
President's Management Agenda (PMA) Human Capital initiative.  EPA received green progress
scores for five of six quarters.28  The Agency aligned its human capital planning  activities with
strategic planning  and budgeting processes. EPA has issued a new Strategy for Human Capital,
Investing in Our People II, 2004 and Beyond 29 to build on a history of solid accomplishments
and chart the course for the future.  The Strategy identifies 80 specific action items for FY 2004
that set the stage for achieving Human Capital excellence and for attaining a green status score in
the Human Capital portion of the PMA.  Some of those action items include:

       I.      Implementing the National Strategic Workforce Planning System,30 which links
       competencies to mission needs along major occupations, and will provide managers with
       a tool to inventory workforce competencies and project future needs to identify skill gaps.
       II.     Continuing to offer successful developmental programs that address the needs of
       all employees from administrative personnel to executive leadership.
       III.    Assessing the effectiveness of the Workforce Development  Strategy31 programs,
       by conducting several program evaluations and making enhancements as indicated by
       these evaluations.   These  evaluations  will  serve  as a "test bed"  for  an evaluation
       methodology that will be applied to other human capital initiatives.
       IV.    Providing greater support for national recruitment initiatives and developing a
       coordinated approach to Agency-wide recruitment and outreach initiatives.

       To ensure that the Agency's Human Capital activities support the agency mission and are
being effectively conducted, EPA is implementing a Human Capital Accountability Plan.

Protecting Critical Infrastructure from Non-Traditional Attacks
28 U. S. Executive Office of the President. "The President's Management Agenda." Washington, DC: Available only on the
Internet at: http://www.results.gov/agenda/index.htnii
29 U.S. EPA, Office of Administration and Resources Management. "Strategy for Human Capital, Investing in Our People II,
2004 and Beyond."  Washington, DC: EPA. Available only on the Intranet at: http:"intranet.epa.gov/oanM/2003shc.-''indgx.html
30  U. S. EPA, Office of Administration and Resources Management. "National Strategic Workforce Planning System."
Washington, DC: EPA. Available only on the intranet at: http:/7intranet.epa.gov/institute/wds/planning.htm

jl  U. S. EPA Office of Administration and Resources Management. "Workforce Development Strategy." Washington, DC:
EPA. Available only on the Intranet at: http://intraMet.epa.gov/institute/wds.htm

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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

       While EPA's efforts to enhance critical infrastructure protection are commendable, EPA
needs to better define expectations and develop systems to effectively measure and analyze
program performance to ensure the desired state of security and achieve its goals. This issue has
been an OIG management challenge since FY 2002.

       EPA made significant  progress in  implementing the Agency's  Homeland Security
Strategic Plan;"2 a comprehensive approach to carrying out EPA's responsibilities m responding
to and recovering from acts of environmental and other terrorists attacks. In FY 2003, EPA
established an Office of Homeland  Security  (OHS)  as  the lead  office  for  ensuring
implementation of the Homeland Security Strategic Plan, coordinating homeland security policy
development across EPA, and serving as primary liaison with senior officials in the Department
of Homeland Security and other Federal agencies with responsibilities for homeland security.
The Homeland Security Strategic Plan was updated and is currently undergoing a quality control
review. EPA plans to release the updated Plan during the second quarter of FY 2004.

       EPA responded to requests  for information and reports from the White House Homeland
Security Council, Department of Homeland Security, White House Office of Management  and
Budget, General Accounting Office, Congress,  and members of the public.  The Agency is also
developing a homeland security information management system.

       EPA is working to complete a number of inter-  and intra-agency efforts related to
homeland security, including critical infrastructure, bio-defense, and laboratory capacity.   In
addition, EPA convened a Homeland Security  Policy Coordinating Committee, and is working
with senior staff to develop and resolve homeland security policy priorities at EPA. EPA also
formed a working group to explore  issues  associated with  the  management and analysis of
national security information and other sensitive information.  The group completed a program
review  during  the  first  quarter  of  FY  2004, and  EPA is currently reviewing  proposed
recommendations.  EPA's plans to implement accepted recommendations should begin during
the second quarter of FY 2004.

Linking Mission and Management

       OIG believes that EPA has  begun developing the process for linking resources to results,
but needs to strengthen its ability to link costs  to goals by working cooperatively with its State
and Federal agency partners to develop  more outcome-oriented goals and measures, and by
improving Agency accounting procedures. This issue has been an OIG management challenge
from FY 2001 to FY 2003.

       EPA's sustained focus on improving the way the Agency manages  for results and uses
cost and performance information  hi decision making has  resulted  in government-wide
recognition for the Agency's achievements  in Budget  and Performance  Integration under the
32 U.S. EPA Strategic Plan for Homeland Security. Available at
http://www..q?a.gov/epahome/downlpads/epa homelancLseciirity strategic plan.pdf


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                            Environmental Protection Agency

            FY 2005 Annual Performance Plan and Congressional Justification

President's Management Agenda.  The Agency's accomplishments hi FY 2003 include the
following:   (1) revising  EPA's strategic plan to include five outcome-oriented  goals  and
supporting objectives and  sub-objectives that have clear linkages with the work of regions,
states, and tribes;  (2) developing Regional  Plans  as a common framework for linking EPA's
Regional priorities to the Agency's five strategic goals;  (3)  increasing  the  use  of annual
performance information and trend data in developing the FY 2005 budget; and (4) developing
more outcome-oriented annual performance  goals and measures as well as efficiency measures.
In addition, in FY 2003, EPA enhanced its cost accounting capabilities and strengthened the
linkages between resources and performance by developing a new accounting framework that
will allow  EPA to track resources across the five new goals.  Further, EPA released a Draft
Report on the Environment33 as part of the Agency's "environmental indicators initiative," which
is intended to  help assess the current state of the environment and to provide a baseline against
which future performance can be measured.

       EPA joined only two other Federal agencies hi receiving a "green" status  score for
Improved Financial Performance. OMB provided this distinction in recognition of the Agency's
significant accomplishments in these  areas,  including EPA's use of financial and performance
information in day-to-day program management and decision making.  OMB also provided the
Agency with  progress scores of "green" for Budget and Performance Integration under the
President's Management Agenda for the seventh consecutive quarter since June 2002.  EPA
received a  2003 President's Quality Award for financial management,34 the highest recognition
hi government given to Federal agencies for excellence hi management. In addition, EPA was
selected as a finalist last year for the 2002 President's Quality Award in the area of Budget and
Performance Integration.35   While EPA acknowledges the importance of the improvement
opportunities  identified by the OIG, it  has made significant  progress hi this  area, and  is
effectively working on further achievements.

Grants Management and Use of Assistance Agreements

       EPA needs to  improve  oversight  for  the award and  administration of assistance
agreements to ensure effective and efficient use of resources. From FY 2001 to FY 2003 this
issue has been an EPA weakness, and a GAO, OMB or OIG management challenge.

       Each fiscal year, EPA awards, on the average, slightly less than half of the Agency's
budget hi grants,36 and it  is implementing  a comprehensive approach to  manage these grant
dollars effectively and ensure they further the Agency's mission.  Specifically, hi FY 2003, EPA
33  U.S. EPA Draft Report on the Environment 2003 (EPA-260-R-02-006, June 2003), available at
http://www.epa.gov/mdicators/roe/indgx.htm.
34  EPA received 2003 Presidential Award for Management Excellence, media advisory. Available at
ht^/www.opm.gpy/pressrel/2003/WA-PQA.asp.
35  EPA selected as finalist for the 2002 Presidential Quality Award in Area of Budget and Performance Integration, news
release. Available at httpi/vwww.whitehouse.gov/news/releases/2002/11/20021125 2.html.

36  U.S. EPA, Office of Administration and Resources Management. "EPA Grants Information and Control System (GICS)
database." Washington, DC: EPA.


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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

developed the Agency's  first long-term Grants Management Plan.37  The Plan provides the
framework for ensuring that EPA's grant programs meet the highest management and fiduciary
standards and further the Agency's strategic program goals.

       A  key objective  of the long-term  Plan  is  to  strengthen  accountability for grants
management. To that end, EPA issued directives emphasizing the need to hold staff accountable
for effective grants management, and requiring managers to include compliance with grants
management policies in  mid-year performance discussions with staff.  In addition, EPA is
requiring Headquarters and Regional offices to include hi then: Integrity Act Assurance letters a
description of their efforts to  address the  grants management weakness.  The Agency is
supplementing these efforts with an ongoing review of employee  performance  standards to
ensure that standards adequately reflect grants management responsibilities.

       EPA is aggressively implementing its recently established policies for grants competition
and post-award monitoring. In FY 2003, the Agency has more than doubled the percentage of
competitive awards to non-profit organizations covered by the competition policy over the level
achieved in FY 2002, and the new post-award monitoring policy will significantly increase the
level of baseline and advanced monitoring of grantees.  All Agency Senior Resource Officials
(SROs) submitted FY 2003 post-award monitoring plans to ensure a strong level of commitment
to effective grants management and accountability.  EPA also has developed a new performance
incentives award program for grants management that will recognize offices that exceed the
performance measures in the long-term Plan. Other accomplishments include: revamped training
programs  focusing on   core  competencies of project  officers  and grants  specialists;  a
comprehensive, new system of grants management reviews of EPA offices; highlighting in the
Agency's 2003 Strategic Plan the importance  of effective grants management in carrying out the
Agency's  strategic goals; developing an interim policy  on grant environmental results; and
convening two meetings of the Grants Management Council, composed of SROs, to provide for
high-level planning and coordination.
37 U.S. EPA, Office of Administration and Resources Management. "EPA Grants Management Plan." Washington, DC: EPA.
Available only through the Intemet:http://www.epa.gov/ogd/EO/fiiialreport.pdf

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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                             EPA USER FEE PROGRAM
       In FY 2005, EPA will have several user fee programs in operation. These user fee
programs are as follows:

Current Fees

•      Pre-Manufacturing Notification Fee

       Since 1989, this fee has been collected for the review and processing of new chemical
       Pre-Manufacturing Notifications  (PMN)  submitted  to EPA by the  chemical industry.
       These fees are paid at the time of submission of the PMN for review by EPA's Office of
       Prevention, Pesticides and Toxic Substances.  PMN fees are authorized by  the Toxic
       Substances Control Act and contain a cap on the amount the Agency may charge for a
       PMN review.  EPA expects to collect $1,800,000 in PMN fees in FY 2005 if the  existing
       fee structure is not altered hi FY 2004. The removal of the statutory fee cap is discussed
       below under User Fee Proposals.

•      Lead Accreditation and Certification Fee

       The  Toxic  Substances Control  Act,  Title  IV,  Section  402(a)(3),  mandates  the
       development  of a schedule  of fees  for persons  operating  lead  training  programs
       accredited under the 402/404 rale and for lead-based paint contractors certified under this
       rule.  The training programs ensure  that lead paint abatement is done safely.  Fees
       collected for this activity are deposited in the U.S. Treasury. EPA estimates that less than
       $500,000 will be deposited in FY 2005.

Pesticides Fees

       The  FY 2005  President's Budget  assumes  passage  of the  FY  2004  Omnibus
Appropriations Act,  which includes  authorization for a new  fee structure for the  pesticides
program, under the  Pesticides Registration Improvement Act for 2003.   The new structure
includes an extension to the Maintenance fee for older pesticide review, and a new Enhanced
Registration Services fee,  which  will allow the Agency to accelerate the review  of new
registration actions for pesticides.

•      Pesticides Maintenance Fee Extension

       The  Maintenance Fee provides funding for both the Tolerance Reassessment  and the
       Reregistration programs.  The Pesticides Registration  Improvement Act extends  the
       maintenance  fee through 2008,  to coincide with the schedules for these  programs.
       Tolerance reassessment is slated for completion in 2006, under the FQPA statute, and the
       final reregistration decisions are scheduled for 2008. In FY 2005, the Agency expects
       collections of $27,000,000.

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                     Environmental Protection Agency

     FY 2005 Annual Performance Plan and Congressional Justification


Enhanced Registration Services

The  Pesticides Registration Improvement Act includes fees for accelerated service on
registration decisions for pesticides. This will allow industry to move new pesticides to
the market more quickly, often providing an alternative to older, riskier pesticides in use.
These fees will  be paid to the Agency at the time the  registration action  request is
submitted. In FY 2005, Agency collections are estimated at $19,400,000.

Removal of the Statutory Cap on the Pre-Manufacturing Notification Fee

The Agency is proposing authorizing and appropriations language to remove the statutory
cap on the existing Pre-Manufacturing Notification (PMN) fees to allow EPA to cover
the full  cost of the PMN program. The  authorizing language would remove the current
statutory cap  in the Toxic Substances Control Act on the total fee that EPA is allowed to
charge.  The fee change would be subject to an appropriations  language trigger that
would allow the  fees to be counted as discretionary.  Under the current fee structure, the
Agency would  collect $1,800,000 in FY 2005.  The increase hi PMN fees will be
deposited  into a special fund in the U.S. Treasury, available to the Agency, subject to
appropriation. After the anticipated rulemaking,  the Agency estimates collections of an
additional $4,000,000 in FY 2005.

Pesticides Registration Fee

The Pesticides Registration Improvement Act rescinds the authority to collect pesticides
registration fees to offset base program costs. This budget proposes amending the Act to
allow collection of this fee. Collections are estimated at $26,000,000.

Motor Vehicle and Engine Compliance Program Fee

This fee is authorized  by the Clean Air Act of 1990 and is managed by the Office of Air
and  Radiation.    Fee  collections began in August  1992.  This fee  is  imposed on
manufacturers of light-duty vehicles, light and heavy trucks and motorcycles. EPA has a
final rule currently under review at OMB that updates  fees for industries currently paying
fees  and setting forth fees for newly regulated vehicles and engines. The fees established
for new compliance programs are imposed on heavy-duty, in-use, and nonroad industries,
including  large diesel and gas equipment (earthmovers, tractors, forklifts, compressors,
etc), handheld and non-handheld utility engines (chainsaws, weed-wackers, leaf-blowers,
lawnmowers, tillers, etc.), marine (boat motors,  tugs, watercraft,  jet-skis), locomotive,
aircraft  and recreational vehicles (off-road motorcycles, snowmobiles).  The fees cover
EPA's cost of certifying new  engines and vehicles and monitoring compliance of in-use
engines and vehicles.  In FY 2005, EPA expects to collect $18,000;000 from this fee.
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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                             WORKING CAPITAL FUND
       In FY 2005, the Agency begins its ninth year of operation of the Working Capital Fund
(WCF). It is a revolving fund authorized by law to finance a cycle of operations, where the costs
of goods and services  provided are charged to users on a fee-for-service basis.  The funds
received are available without fiscal year limitation, to continue operations and to replace capital
equipment.   EPA's  WCF was  implemented  under the authority  of  Section  403 of the
Government Management Reform Act  of 1994 and  EPA's  FY  1997 Appropriations  Act.
Permanent WCF authority was contained in the Agency's FY 1998 Appropriations Act.

       The Chief Financial Officer initiated the WCF in FY 1997 as part of an effort to: (1) be
accountable to Agency offices, the Office of Management and Budget, and the Congress; (2)
increase the efficiency of the administrative services  provided to program offices;  and (3)
increase customer service and responsiveness.  The Agency has a WCF Board which provides
policy and planning oversight  and  advises the CFO regarding the WCF financial position.  The
Board, chaired by the Associate Chief Financial Officer, is composed of eighteen permanent
members from the program offices  and the regional offices.

       Two Agency Activities begun in  FY 1997 will continue into FY  2005.  These are the
Agency's  data  processing and telecommunications  operations, managed by  the  Office  of
Technology Operations and Planning, and Agency postage costs,  managed by the Office of
Administration.  The Agency's FY  2005 budget request includes resources  for  these two
Activities  in  each National Program  Manager's submission,  totaling approximately $148.0
million. These estimated resources may be increased to incorporate  program office's additional
service needs during the operating year.  To  the extent that these  increases  are  subject to
Congressional reprogramming notifications, the Agency  will  comply with  all  applicable
requirements.
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                              Environmental Protection Agency

             FY 2005 Annual Performance Plan and Congressional Justification
                       STATE and TRIBAL ASSISTANCE GRANTS (STAG)
                                     Appropriation Account
                                      (Dollars in thousands)
                                         FY2003
                                         Enacted
                                          Budget
               FY2004
              President's
               Budget
FY2005
Pres Bud
  Total
 Difference
FY 2005 PB
    v.
FY 2004 PB
STATE and TRIBAL GRANT
ASSISTANCE

INFRASTRUCTURE ASSISTANCE
    State Revolving Funds
    Clean Water State Revolving Fund

    Drinking Water State Revolving Fund
    Total Infrastructure

STAG PROJECTS

    Brownfields Projects

    Clean School Bus Initiative

    Special Needs Projects
    Mexican Border
    Alaskan Native Villages
    Puerto Rico
    Total Special Needs Projects

    Congressional Earmarks
    Total - STAG Projects

TOTAL STAG
$1,142,901.8    $1,202,700.0    $1,252,300.0
                $49,600.0
$1,341,225.0      $850,000.0      $850,000.0          $0.0

 $844,475.0      $850,000.0      $850,000.0          $0.0
$2,185,700.0
$89,911.8

$49,675.0
$42,723.1
$92,398.1
$323,992.3
$506,302.2
$1,700,000.0
$120,500.0

$50,000.0
$40,000.0
$8,000.0
$98,000.0
$0.0
$218,500.0
$1,700,000.0
$120,500.0
$65,000.0
$50,000.0
$40,000.0
$4,000.0
$94,000.0
$0.0
$279,500.0
$0.0
$0.0
$65,000.0
$0.0
$0.0
-$4,000.0
-$4,000.0
$0.0
$61,000.0
$3,834,904.0    $3,121,200.0    $3,231,800.0     $110,600.0
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                          Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                   CATEGORICAL GRANTS PROGRAM (STAG)
                                  (Dollars in millions)
$643 ,$665,


$645

$674

$745

$880

$885

$1,006

$1,074

$1,202


$1,252

               1994 1995 1996 1997  1998 1999 2000 2001  2002 2003 2004 2005
       In FY 2005, the President's Budget requests a total of $1,252 million for 25 "categorical"
program grants for state and Tribal governments. This is an increase of $49.6 million over FY
2004.  EPA will continue to pursue its strategy of building and supporting state, local and Tribal
capacity  to implement,  operate, and  enforce the  Nation's  environmental  laws.    Most
environmental laws envision establishment of a decentralized nationwide structure to protect
public health and the environment. In this way, environmental goals will ultimately be achieved
through the actions, programs, and  commitments of state, Tribal and  local governments,
organizations and citizens.

       In FY 2005, EPA will continue to offer flexibility to state and Tribal governments to
manage their environmental programs as well as provide technical and financial assistance to
achieve mutual environmental goals.  First, EPA and its state and Tribal partners will  continue
implementing the National Environmental Performance Partnership System (NEPPS). NEPPS is
designed to allow states more flexibility to operate their programs, while increasing emphasis on
measuring and reporting environmental improvements.  Second, Performance Partnership Grants
(PPGs) will continue to  allow states and tribes  funding flexibility to combine categorical
program grants to address environmental priorities.

HIGHLIGHTS:

State & Local Air Quality Management, Radon, and Tribal Air Quality Management Grants

       In FY 2005, the President's  Budget includes $247.8 million for Air State and Local
Assistance  grants  to support state, local, and Tribal air programs as well as radon programs.
State and Local Air Quality Management grant funding is requested in the amount of $228.6
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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

million. These funds provide resources to state and local air pollution control agencies for the
development and implementation of programs for the prevention and control of air pollution or
for the implementation of national primary and secondary ambient ah* standards.  They can also
be used to support certain research and development and related activities. Tribal Air Quality
Management  grants, requested in the amount  of $11.1 million, provide funds to  Tribes to
develop and implement air pollution prevention and control programs, or to implement national
primary and secondary ambient  air standards.   Lastly, the President's Budget includes  $8.2
million for Radon grants, to provide funding for state radon programs.

Pesticide Enforcement, Toxics Substance Compliance, and Sector Program Grants

       In FY 2005, the  President's  Budget includes  $27.3  million  to  build  environmental
partnerships with states and tribes and to strengthen their ability to address environmental and
public health  threats.  The  enforcement state  grants  request  consists of $19.9 million for
Pesticides Enforcement, $5.15  million  for Toxic Substances Enforcement Grants, and $2.25
million for Sector Grants. State and Tribal enforcement grants will be awarded to assist in the
implementation of compliance and enforcement provisions of the Toxic Substances Control Act
(TSCA) and the Federal Insecticide, Fungicide, and Rodenticide Act  (FIFRA).  These grants
support state and Tribal compliance activities to protect the environment from harmful  chemicals
and pesticides.

       Under the Pesticides Enforcement Grant program, EPA provides resources to  states and
Indian tribes to conduct FIFRA compliance inspections and take appropriate enforcement actions
and implement programs for farm worker protection. Under the Toxic Substances Compliance
Grant  program,  states  receive  funding  for  compliance   inspections  of  asbestos  and
polychlorinated biphenyls  (PCBs)  and for  implementation of  the state  lead abatement
enforcement program.  The funds will complement other Federal program grants for building
state capacity for lead abatement, and enhancing compliance  with disclosure,  certification and
training requirements.

Pesticides Program Implementation Grants

       The President's  FY 2005 budget  includes $13.1  million for  Pesticides  Program
Implementation grants.  These resources will assist states and tribes hi implementing the safer
use of pesticides, including: worker protection; certification and training of pesticide applicators;
protection of endangered species; tribal pesticide programs;  integrated pest management and
environmental stewardship; and protection of water from pesticide contamination.

Lead Grants

       The President's  FY 2005  budget includes $13.7 million for Lead grants.  This funding
will support the development of authorized programs in both  States  and Tribes to prevent lead
poisoning through the training of workers  who remove lead-based  paint, the accreditation of
training programs, the certification of contractors, and renovation education programs. Another
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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

activity that this  funding will support is the collection of lead data to determine the nature and
extent of the lead problem within an area.

Pollution Prevention Grants

       The FY 2005 request includes $6.0 million for Pollution Prevention grants.  The grant
program provides technical  assistance towards the achievement of reduced pollution through
source reduction.

Environmental Information  Grants

       In FY 2005, the President's Budget includes $25.0 million to continue a grant program,
started in 2002,  which provides states and tribes assistance to develop the Exchange Network.
This grant program will support state and Tribal efforts to complete necessary changes to their
information management  systems to facilitate participation, and  enhance state information
integration efforts.   The  Exchange  Network  will improve environmental decision making,
improve data quality and accuracy, ensure security of sensitive data, and reduce the burden on
those who provide and those  who access information

Underground Storage Tanks (UST) Grants

       The President's FY 2005 budget includes $37.9 million for Underground Storage Tank
grants, an increase of $26 million over 2004.  The proposed $26 million increase in state and
tribal grants would allow EPA to fund additional inspections of underground storage tanks.
More inspections will ensure proper operation and maintenance of UST systems  to prevent
future  releases.  This investment more than triples the size  of Federal assistance to states and
tribes for the UST program.  States and tribes will use these resources to ensure that UST owners
and operators routinely and correctly monitor all regulated tanks and piping in accordance with
regulations, and  also to develop programs with sufficient authority and enforcement capabilities
to operate in lieu of the Federal program.

Hazardous Waste Financial Assistance Grants

       In FY 2005, the President's Budget includes  $106.4 million in funding for Hazardous
Waste Financial Assistance  grants.  Hazardous Waste Financial Assistance grants are used for
the implementation of both  the Resource Conservation and Recovery Act (RCRA) hazardous
waste management and minimization programs.

Brownflelds Grants

       In FY 2005, the President's Budget includes $60.0 million, to continue the Brownfields
grant program that provides assistance to states and tribes to develop and enhance their state and
Tribal response programs.   This funding will  help  states and  tribes  develop  legislation,
regulations, procedures, and guidance,  to establish  or  enhance the administrative and  legal
structure of their response programs.

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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification


Water Pollution Control (Clean Water Act Section 106) Grants

       In FY 2005, the President's Budget includes $222.4 million for Water Pollution Control
grants, an increase of $22.0 million over 2004. Of this increase, $17.0 million will fund grants to
states and tribes under the  water quality  monitoring initiative to  support adoption of new
comprehensive monitoring  strategies and  the  development of statistically valid monitoring
networks to help target activities and determine water quality status and trends.  The remaining
$5  million will  assist states  in the  implementation  of the Concentrated Animal Feeding
Operations (CAFOs) programs and support issuance of storm sewer permits.

Wetlands Grants

       In FY 2005, the President's Budget includes $20.0 million for Wetlands Program Grants.
These grant resources will be used to assist states and tribes in protecting wetlands and waters
not covered by the Clean Water Act.

Public Water System Supervision Grants

       In FY 2005, the President's Budget includes $105.1 million for Public Water System
Supervision (PWSS) grants.  These grants provide assistance to implement and enforce National
Primary Drinking  Water Regulations to ensure the safety  of the  Nation's drinking water
resources and to protect public health.

Indian General Assistance Program Grants

       In  FY 2005, the President's  Budget includes $62.5  million  for the Indian General
Assistance Program (GAP) to help Federally recognized tribes and niter-tribal consortia develop,
implement and assume environmental programs.

Homeland Security Grants

       In FY 2005, the President's Budget includes $5.0 million for homeland security grants to
support states' efforts to work with  drinking water and wastewater systems to develop and
enhance emergency operations plans; conduct training in the implementation of remedial plans in
small systems; and, develop detection, monitoring and treatment technology to enhance drinking
water and wastewater security.

Water Quality Cooperative Agreements Grants

       The FY 2005 President's Budget includes $20.5 million for Water Quality Cooperative
Agreements  grants, an increase of $1.5 million  over 2004.   This increase will  fund a new
technical assistance and demonstration grants program to show municipalities innovative ways
of managing  infrastructure.   Through the Water Quality Cooperative Agreement program,  the
Agency continues  to  support  the creation of unique and innovative  approaches to address

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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

requirements  of the NPDES  program, with special emphasis  on wet weather activities.  In
addition, this grant program has long supported other programmatic activities such as sustainable
management systems for water pollution control and various other program innovations.

Underground Injection Control (UIC) Grants

       The FY 2005 President's Budget includes $11.0 million for the Underground Injection
Control grants program. Ensuring safe underground injection of waste materials is a fundamental
component of a comprehensive source water protection program.  Grants are provided to states that
have primary enforcement authority (primacy) to implement and maintain UIC programs.

Targeted Watershed Grants

       The President's FY 2005 Budget funds Targeted Watershed grants at $25 million, an increase
of $5 million over to help municipalities meet requirements for nutrient loading reductions.  The
program supports competitive grants to watershed  stakeholders ready to undertake immediate
action  to  improve water quality, and to improve  watershed protection  measures with tools,
training and technical assistance. Special emphasis  will be given to projects that promote water
quality trading opportunities to more efficiently achieve water quality benefits through market-
based approaches.

State and Tribal Performance Fund

       The President's FY 2005 Budget includes  $23 million for a new performance grants
program that will be available to states and tribes on a competitive basis for all activities eligible
for categorical grant assistance. The award process will be performance-focused, with winners
selected on the  basis  of environmental  and/or  public health outcomes.  This will encourage
development  of projects with tangible, performance-based  environmental and health outcomes
that can be models for implementation across the nation..

Wastewater Operator Training Grants

       The President's FY 2005 Budget includes $1.5 million as a transfer from EPM to STAG
to better align its budget with its performance goals and reflect the environmental partnerships
supported by these funds.  States  and state universities receive funding to  provide technical
assistance for municipally owned wastewater treatment plants.

     Elimination of Tribal Cap on Non-Point Sources

       In 2005, the President's  Budget eliminates the statutory  one-third-of-one-percent cap on
Clean Water Act Section 319 Nonpoint Source  Pollution grants that may be awarded to tribes.
Tribes applying for and receiving Section 319 grants have steadily increased from two in 1991 to
over 70 in 2001. This proposal recognizes the increasing demand for resources to address Tribal
nonpoint source program needs.
                                         SA-23

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
CATEGORIAL PROGRAM GRANTS (STAG)
by National Program
and State Grant


(Dollars in Thousands)
Grant


Air & Radiation
State and Local Assistance
Tribal Assistance
Radon

Water Quality
Pollution Control (Section 106)
Beaches Protection
Nonpoint Source (Section 319)
Wetlands Program Development
Water Quality Cooperative Agrmts
Targeted Watersheds
Wastewater Operator Training Grants

Drinking Water
Public Water System Supervision (PWSS)
Underground Injection Control (UIC)
Homeland Security

Hazardous Waste
H.W. Financial Assistance
Brownfields
Underground Storage Tanks

Pesticides & Toxics
Pesticides Program Implementation
Lead
Toxic Substances Compliance
Pesticides Enforcement

Multimedia
Environmental Information
Pollution Prevention
Sector Program
Indian General Assistance Program
State and Tribal Performance Fund

TOTALS
FY2004
President's
Budget

$228,550.0
$11,050.0
$8,150.0
$247,750.0

$200,400.0
$10,000.0
$238,500.0
$20,000.0
$19,000.0
$20,000.0
$0.0
$507,900.0

$105,100.0
$11,000.0
$5,000.0
$121,100.0

$106,400.0
$60,000.0
$11,950.0
$178,350.0

$13,100.0
$13,700.0
$5,150.0
$19,900.0
$51,850.0

$25,000.0
$6,000.0
$2,250.0
$62,500.0
$0.0
$95,750.0
FY2005
President's
Budget

$228,550.0
$11,050.0
$8,150.0
$247,750.0

$222,400.0
$10,000.0
$209,100.0
$20,000.0
$20,500.0
$25,000.0
$1,500.0
$508,500.0

$105,100.0
$11,000.0
$5,000.0
$121,100.0

$106,400.0
$60,000.0
$37,950.0
$204,350.0

$13,100.0
$13,700.0
$5,150.0
$19,900.0
$51,850.0

$25,000.0
$6,000.0
. $2,250.0
$62,500.0
$23,000.0
$118,750.0
$1,202,700.0 $1,252,300.0
Difference
FY2005v
FY2004

$0.0
$0.0
$0.0
$0.0

. $22,000.0
$0.0
($29,400.0)
$0.0
$1,500.0
$5,000.0
$1,500.0
$600.0

$0.0
$0.0
$0.0
$0.0

$0.0
$0.0
$26,000.0
$26,000.0

$0.0
$0.0
$0.0
$0.0
$0.0

$0.0
$0.0
$0.0
$0.0
$23,000.0
$23,000.0
$26,250.0
                          SA-24

-------
              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification


    FY 2005 STAG CATEGORICAL PROGRAM GRANTS
             Statutory Authority and Eligible Uses
                    (Dollars in Thousands)
Grant Title



State and Local
Air Quality
Management








State and Local
Air Quality
Management


















Statutory
Authorities


Clean Air Act,
§103









Clean Air Act,
§103



















Eligible
Recipients*


Air pollution
control
agencies as
defined in
section 302(b)
of the CAA.





Multi-
jurisdictional
organizations
(non-profit
organizations
whose boards
of directors or
membership is
made up of
CAA section
302(b) agency
officers and
Tribal
representatives
and whose
mission is to
support the
continuing
environmental
programs of
the states).
Eligible Uses



S/L monitoring
and data
collection
activities in
support of the
establishment of
aPM2.5
monitoring
network and
associated
program costs.
Coordinating or
facilitating a
multi-
jurisdictional
approach to
addressing
regional haze.














FY2004
Request


$42,500.0










$10,000.0




















FY2005
Goal/
Objective

Goal 1,
Ohi 1
wUJ. 1








Goal 1,
r\L.: t
UDJ. 1


















FY2005
Request

$42,500.0











$10,000.0




















                           SA-25

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Titte
State and Local
Air Quality
Management





































Statutory
Authorities
Clean Air Act,
Sections 103,
105, 106





































Eligible
Recipients*
Air pollution
control
agencies as
defined in
section 302(b)
of the CAA;
Multi-
jurisdictional
organizations
(non-profit
organizations
whose boards
of directors or
membership is
made up of
CAA section
302(b) agency
officers and
whose mission
is to support
the continuing
environmental
programs of
the states);
Interstate air
quality control
region
designated
pursuant to
section 107 of
the CAA or of
implementing
section 176A,
or section 184
NOTE: only
the Ozone
Transport
Commission is
eligible as of
2/1/99
Eligible Uses
Carrying out the
traditional
prevention and
control programs
required by the
CAA and
associated
program support
costs;
Coordinating or
facilitating a
multi-
jurisdictional
approach to
carrying out the
traditional
prevention and
control programs
required by the
CAA; Supporting
training for CAA
section 302(b) air
pollution control
agency staff;
Coordinating or
facilitating a
multi-
jurisdictional
approach to
control interstate
ah" pollution.









FY2004
Request
$176,050.0







































FY2005
Goal/
Objective
Goal 1,
Ohi 1
\S*JJ* -I





































FY2005
Request
$176,050.0







































                          SA-26

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Title


Tribal Air
Quality
Management


















Radon






Water Pollution
Control (Section
106)









Statutory
Authorities

Clean Air Act,
Sections 103 and
105; TCA in
annual
Appropriations
Acts















Toxic Substances
Control Act,
Sections 10 and
306; TCA in
annual
Appropriations
Acts.
FWPCA, as
amended, §106;
TCA in annual
Appropriations
Acts.







Eligible
Recipients*

Tribes;
Intertribal
Consortia;
State/Tribal
college or
university.















State
Agencies,
Tribes,
Intertribal
Consortia


States, Tribes
and Intertribal
Consortia, and
Interstate
Agencies







Eligible Uses


Conducting air
quality
assessment
activities to
determine a
tribe's need to
develop a CAA
program;
Carrying out the
traditional
prevention and
control programs
required by the
CAA and
associated
program costs;
Supporting
training for CAA
for federally
recognized
tribes.
Assist in the
development and
implementation
of programs for
the assessment
and mitigation of
radon.
Develop and
carry out surface
and ground water
pollution control
programs,
including
NPDES permits,
TMDL's, WQ
standards,
monitoring, and
NFS control
activities.
FY2004
Request

$11,050.0




















$8,150.0






$200,400.0











FY2005
Goal/
Objective
Goal 1,

Obj. 1


















Goal 1,
/-vr : *\
Obj. 2




Goal 2,
/-vt_* f\
Obj. 2









FY2005
Request

$11,050.0




















$8,150.0






$222,400.0











                          SA-27

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant TMe


Nonpoint Source
(NFS - Section
319)







Wetlands
Program
Development







Water Quality
Cooperative
Agreements
















Statutory
Authorities

FWPCA, as
amended,
§319(h);TCA
in annual
Appropriations
Acts.




FWPCA, as
amended,
§104(b)(3);
TCA in annual
Appropriations
Acts.




FWPCA, as
amended,
§104(b)(3);Safe
Drinking Water
Act, §1442; TCA
in annual
Appropriations
Acts.











Eligible
Recipients*

States, Tribes,
Intertribal
Consortia







States, Local
Governments,
Tribes,
Interstate
Organizations,
Intertribal
Consortia, and
Non-Profit
Organizations

States, Local
Governments,
Tribes, Non-
Profit
Organizations,
Intertribal
Consortia, and
Interstate
Organizations










Eligible Uses


Implement EPA-
approved State
and Tribal
nonpoint source
management
programs and
fund priority
projects as
selected by the
State.
To develop new
wetland
programs or
enhance existing
programs for the
protection,
management and
restoration of
wetland
resources.
Creation of
unique and
innovative
approaches to
pollution control
and prevention
requirements
associated with
wet weather
activities, AFOs,
TMDLs, source
water protection,
watersheds; and
sustainable
infrastructure
management for
both wastewater
and drinking
water systems.
FY2004
Request

$238,500.0









$20,000.0









$19,000.0


















FY2005
Goal/
Objective
Goal 2,
/~lt*« O
Ubj. 2







Goal 4,

Obj.3
~rj* ""






Goal 2,

Obj. 1 and
Obj.2















FY2005
Request

$209,100.0









$20,000.0









$20,500.0


















                           SA-28

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Title


Targeted
Watershed
Grants






Public Water
System
Supervision
(PWSS)








Homeland
Security Grants






Underground
Injection Control
[UIC]








Statutory
Authorities

FWPCA, as
amended, FY05
Appropriations
Act





Safe Drinking
Water Act,
§1443(a); TCA
in annual
Appropriations
Acts.






Safe Drinking
Water Act,
1442; TCA in
annual
Appropriations
Acts.


Safe Drinking
Water Act, §
1443(b);TCAin
annual
Appropriations
Acts.





Eligible
Recipients*

States, Local
Governments,
Tribes,
Interstate
Organizations,
Intertribal
Consortia, and
Non-Profit
Organizations
States, Tribes,
and Intertribal
Consortia









States, Tribes,
and Intertribal
Consortia





States, Tribes,
Intertribal
Consortia








Eligible Uses


Assistance for
watersheds to
expand and
improve existing
watershed
protection
efforts.


Assistance to
implement and
enforce National
Primary Drinking
Water
Regulations to
ensure the safety
of the Nation's
drinking water
resources and to
protect public
health.
To assist States
and Tribes in
coordinating
then- water
security activities
with other
homeland
security efforts.
Implement and
enforce
regulations that
protect
underground
sources of
drinking water
by controlling
Class I-V
underground
injection wells.
FY2004
Request

$20,000.0








$105,100.0











$5,000.0







$11,000.0










FY2005
Goal/
Objective
Goal 4,

Obj. 3






Goal 2,
Obi 1
Vj'l/t . 1









Goal 2,

Obj. 1
J




Goal 2,

Obj. 1








FY2005
Request

$25,000.0








$105,100.0











$5,000.0







$11,000.0










                          SA-29

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Title


Beaches
Protection












Wastewater
Operator
Training Grants













Hazardous Waste
Financial
Assistance








Statutory
Authorities

Beaches
Environmental
Assessment and
Coastal Health
Act of 2000;
TCA in annual
Appropriations
Acts.






Clean Water Act;
Section 104(g)(l)













Resource
Conservation
Recovery Act,
§3011;
FY 1999
Appropriations
Act (PL 105-
276); TCA in
annual
Appropriations
Acts.
Eligible
Recipients*

States, Tribes,
Intertribal
Consortia,
Local
Governments









State Agencies
and
educational
institutions












States, Tribes,
Intertribal
Consortia








Eligible Uses


Develop and
implement
programs for
monitoring and
notification of
conditions for
coastal recreation
waters adjacent
to beaches or
similar points of
access that are
used by the
public.
To fiiriH
JL \J JLUlJXi
programs for the
development of
training/
retraining of
people in the
fields of
operation,
maintenance and
security of
wastewater
treatment works
and related
activities to
maintain the
effectiveness of
systems.
Development &
Implementation
of Hazardous
Waste Programs







FY2004
Request

$10,000.0













$1,500.0 in
theEPM
account













$106,400.0










FY2005
Goal/
Objective
Goal 2,

Obi. 1
V VJ* *•










Goal 2, Obj.
2













Goal 3,
Obj. 1

Obj. 2







FY2005
Request

$10,000.0













$1,500.0 in
the STAG
account













$106,400.0










                          SA-30

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Title


Brownfields















Underground
Storage Tanks
[UST]









Statutory
Authorities

Comprehensive
Environmental
Response,
Compensation
and Liability Act
of 1980, as
amended,
Section 128








Resource
Conservation
Recovery Act
Sections 8001
and 2007(f) and
FY 1999
Appropriations
Act (PL 105-
276); TCA in
annual
Appropriations
Acts.
Eligible
Recipients*

States, Tribes,
Intertribal
Consortia













State, Tribes
and Intertribal
Consortia









Eligible Uses


Build and
support
Brownfields
programs which
will assess
contaminated
properties,
oversee private
party cleanups,
provide cleanup
support through
low interest
loans, and
provide certainty
for liability
related issues.
Demonstration
Grants,
Inspections,
Surveys and
Training;
Develop &
implement UST
program.




FY2004
Request

$180,500.0















$11,950.0











FY2005
Goal/
Objective
Goal 4,

Obi. 2
•v vj,» •»•*












Goal 3
/~\l*i 1
Obj. 1









FY2005
Request

$180,500.0















$37,950.0











                          SA-31

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Title
Pesticides
Program
Implementation

































Statutory
Authorities
The Federal
Insecticide,
Fungicide, and
Rodenticide Act
§ 20 & 23; the
FY 1999
Appropriations
Act (PL 105-
276); FY 2000
Appropriations
Act (P.L. 106-
74); TCA in
annual
Appropriations
Acts.





















Eligible
Recipients*
States, Tribes
and Intertribal
Consortia

































Eligible Uses
Assist states and
tribes to develop
and implement
pesticide
programs,
including
programs that
protect workers,
ground-water,
and endangered
species from
pesticide risks ,
and other
pesticide
management
programs
designated by the
Administrator;
develop and
implement
programs for
certification and
training of
pesticide
applicators;
develop
Integrated
Pesticides
Management
(IPM) programs;
support
pesticides
education,
outreach, and
sampling efforts
for tribes.
FY2004
Request
$13,100.0



































FY2005
Goal/
Objective
Goal 2,
f\L.; 1
Ubj. 1
Goal 4,
/"yf_i I
Ubj. 1






























FY2005
Request
$13,100.0



































                           SA-32

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Title


Lead












Toxic Substances
Compliance







Pesticide
Enforcement







Statutory
Authorities

Toxic Substances
Control Act, -
§ 404 (g); TSCA
10; FY2000
Appropriations
Act (P.L. 106-
74); TCA in
annual
Appropriations
Acts.



Toxic Substances
Control Act,
§28(a) and 404
(g); TCA in
annual
Appropriations
Acts.


FIFRA
§23(a)(l);FY
2000
Appropriations
Act (P.L. 106-
74); TCA in
annual
Appropriations
Acts.
Eligible
Recipients*

States, Tribes,
Intertribal
Consortia










States,
Territories,
Tribes,
Intertribal
Consortia




States,
Territories,
Tribes,
Intertribal
Consortia




Eligible Uses


To support and
assist states and
tribes to develop
and carry out
authorized state
lead abatement
certification,
training and
accreditation
programs; and to
assist tribes in
development of
lead programs.
Assist in
developing and
implementing
toxic substances
enforcement
programs for
PCBs, asbestos,
and lead-based
paint.
Assist in
implementing
cooperative
pesticide
enforcement
programs.



FY2004
Request

$13,700.0












$5,150.0








$19,900.0








FY2005
Goal/
Objective
Goal 4,

Obj. 1










GoalS,

Obj. 1






Goal 5,

Obj. 1






FY2005
Request

$13,700.0












$5,150.0








$19,900.0








                          SA-33

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Titte
National
Environmental
Information
Exchange
Network
(NEIEN,aka
"the Exchange
Network")


























Statutory
Authorities

As appropriate,
Clean Air Act,
Sec. 103; Clean
Water Act, Sec.
104; Solid Waste
Disposal Act,
Sec. 8001;
FIFRA, Sec 20;
TSCA, Sec. 10
and 28; Marine
Protection,
Research and
Sanctuaries Act,
Sec. 203; Safe
Drinking Water
Act, Sec. 1442;
Indian
Environmental
General
Assistance
Program Act of
1992, as
amended; FY
2000
Appropriations
Act (P.L. 106-
74); Pollution
Prevention Act,
Sec. 6605; FY
2002
Appropriations
Act and FY 2003
Appropriations
Acts.
Eligible
Recipients*

States, tribes,
interstate
agencies, tribal
consortium,
and other
agencies with
related
environmental
information
activities.
























Eligible Uses

Assists states and
others to better
integrate
environmental
information
systems, better
enable data-
sharing across
programs, and
improve access
to information.























FY2004
Request

$25,000.0



























FY2005
Goal/
Objective

Goal 4
Obj.2



























FY2005
Request

$25,000.0



























                           SA-34

-------
              Environmental Protection Agency




FY 2005 Annual Performance Plan and Congressional Justification
Grant Title


Pollution
Prevention












Sector Program
(previously
Enforcement &
Compliance
Assurance)

























Statutory
Authorities

Pollution
Prevention Act
of 1990, §6605;
TSCA 10;
FY2000
Appropriations
Act (P.L. 106-
74); TCA in
annual
Appropriations
Acts.



As appropriate,
Clean Air Act,
Sec. 103; Clean
Water Act, Sec.
104; Solid Waste
Disposal Act,
Sec. 8001;
FIFRA, Sec 20;
TSCA, Sec. 10
and 28; Marine
Protection,
Research and
Sanctuaries Act,
Sec. 203; Safe
Drinking Water
Act, Sec. 1442;
Indian
Environmental
General
Assistance
Program Act of
1992, as
amended; FY
2000
Appropriations
Act(P.L. 106-
74); TCA in
annual
Appropriations
Acts.
Eligible
Recipients*

States, Tribes,
Intertribal
Consortia











State,
Territories,
Tribes,
Intertribal
Consortia,
Multi-
jurisdictional
Organizations






















Eligible Uses


To assist state
and tribal
programs to
promote the use
of source
reduction
techniques by
businesses and to
promote other
Pollution
Prevention
activities at the
state and tribal
levels.
Assist in
developing
innovative
sector-based,
multi-media, or
single-media
approaches to
enforcement and
compliance
assurance




















FY2004
Request

$6,000.0













$2,250.0





























FY2005
Goal/
Objective
Goal 4,

Obj. 1











Goal 5,
/~\U4 1
Ubj. 1



























FY2005
Request

$6,000.0













$2,250.0





























                           SA-35

-------
                                Environmental Protection Agency

                FY 2005 Annual Performance Plan and Congressional Justification
Grant Title
Indian General
Assistance
Program
State and Tribal
Performance
Fund
Statutory
Authorities
Indian
Environmental
General
Assistance
Program Act of
1992, as
amended; TCA
in annual
Appropriations
Acts.
FY 2005
President's
Budget
Eligible
Recipients*
Tribal
Governments
and Intertribal
Consortia
State and
Tribal
Governments
Eligible Uses
Plan and develop
Tribal
environmental
protection
programs.
Projects with
performance-
based
environmental
and public health
outcomes
FY2004
Request
$62,500.0
$0.0
F¥2005
Goal/
Objective
Goal 5,
Obj.3
Goal 5,
Obj.2
FY2005
Request
$62,500.0
$23,000.0
* The Recipients listed in this column reflect assumptions in the FY 2005 Budget Request in terms of expected and/or anticipated
eligible recipients.
                                               SA-36

-------
                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                INFRASTRUCTURE / STAG PROJECTS FINANCING
                                  (Dollars in millions)

Infrastructure Financing
Clean Water State Revolving Fund (CWSRF)
Drinking Water State Revolving Fund (DWSRF)
STAG Projects
Brownfields Environmental Projects
Clean School Bus Initiative
Mexico Border Projects
Alaska Native Villages
Targeted Projects - Puerto Rico
Total
FY2004
President's Budget

$850.0
$850.0

$120.5
$0.0
$50.0
$40.0
$8.0
$1,918.5
FY 2005
President's Budget

$850.0
$850.0

$120.5
$65.0
$50.0
$40.0
$4.0
$1,979.5
Infrastructure and Special Projects Funds

       The  President's  Budget  includes  a total of  $1,979.5  million  in  2005  for  EPA's
Infrastructure programs. Of the total infrastructure request, $1,744 million will support EPA's
Goal 2: Clean and Safe Water, $170.5 million will support EPA's Goal 4: Healthy Communities
and Ecosystems.

       Infrastructure  funding  under  the  State  and  Tribal  Assistance  Grants  (STAG)
appropriation provides financial assistance to states,  municipalities and Tribal governments to
fund a variety of drinking water, wastewater, air and Brownfields environmental projects. These
funds are essential to fulfill the Federal government's commitment to help our state, Tribal and
local partners obtain adequate funding to construct the facilities required to comply with Federal
environmental requirements and ensure public health and revitalize contaminated properties.

       Providing STAG funds to capitalize State Revolving Fund (SRF) programs, EPA works
in partnership with the states to provide low-cost  loans to municipalities  for  infrastructure
construction.  As set-asides of the  SRF programs, grants are available  to Indian Tribes and
Alaska Native Villages for drinking water and wastewater infrastructure needs based on national
priority lists.   The Brownfields  Environmental Program provides states, tribes, political
subdivisions  (including cities, towns,  and counties)  the  necessary tools,  information, and
strategies   for  promoting  a  unified  approach to  environmental   assessment  cleanup,
                                         SA-37

-------
                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

characterization, and redevelopment at sites contaminated with hazardous wastes and petroleum
contaminants.

       The resources included in this budget will enable the Agency, in conjunction with EPA's
state, local, and Tribal partners, to achieve several important goals for 2005. Some of these goals
include:

       94 percent of the population served by community water systems will receive drinking
       water meeting all health-based standards with  compliance  dates of December 2001 or
       earlier.

       Award  126 assessment grants under the Brownfields program, bringing the cumulative
       total grants awarded to 806 by the end of FY 2005 paving the way for productive reuse of
       these properties. This will bring the total number of sites assessed to 6,800  while
       leveraging a total of $7.5 billion in cleanup and redevelopment funds since 1995.

GOAL 1; CLEAN AIR AND GLOBAL CLIMATE CHANGE

Clean School Bus USA Initiative

       In FY 2005, EPA will receive $65 million to retrofit school buses, a significant source of
emissions that can cause health hazards in children.  EPA began the Clean School Bus USA pilot
program in April 2003 to provide schools and school districts cost-share grants to reduce diesel
emissions from school buses. More than 24 million children that ride buses to school are at risk
of exposure to high levels of diesel exhaust. Idling school buses can also compromise air quality
around buses, including sidewalks, schoolyards, playgrounds, and even inside nearby buildings.
By adopting better idling practices, retrofitting buses with modern emission control technology,
using cleaner fuels and replacing older school buses, we have the potential of reducing PM
emissions by more than 90 percent, helping to put tomorrow's cleaner buses on the road today.

GOAL 2: CLEAN AND SAFE WATER

Capitalizing Clean Water and Drinking Water State Revolving Funds

       The Clean Water and Drinking Water State Revolving Fund programs demonstrate a true
partnership between  states, localities and the Federal government. These programs provide
Federal financial assistance to states, localities, and Tribal governments to protect the nation's
water resources by providing funds for the construction of drinking water and wastewater
treatment facilities.  The  state  revolving funds are two  important elements of the nation's
substantial investment  in  sewage  treatment and  drinking  water systems which provides
Americans with significant benefits in the form of reduced water pollution and safe drinking
water.

       EPA will  continue  to capitalize the  Clean Water State  Revolving Fund (CWSRF).
Through  this program, the Federal government provides financial assistance for wastewater and

                                        SA-38

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                           Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

other water projects, including nonpoint source,  estuary, stormwater, and sewer overflow
projects. Water infrastructure projects contribute to direct ecosystem improvements by lowering
the amount of nutrients and toxic pollutants in all types of surface waters.

       The President's Budget includes funding the CWSRF at $850 million each year through
2011. More than $20 billion has already been provided to capitalize the CWSRF, over twice the
original Clean Water Act authorized level of $8.4 billion. Total CWSRF funding available for
loans since 1987, reflecting loan repayments, state match dollars, and other funding sources, is
approximately $47 billion, of which more than $43.5 billion has been provided to communities
as financial assistance.

       The dramatic progress made in improving the quality of wastewater treatment since the
1970s is a national success.   In 1972, only 84  million people were served by secondary or
advanced wastewater treatment facilities. Today, 99 percent of community wastewater treatment
plants, serving 181  million people, use secondary treatment or better.

       The DWSRF will  be  self-sustaining in the long run and will help offset the costs of
ensuring safe  drinking water  supplies and assisting small  communities in meeting their
responsibilities.  As noted in the May 2003 Report to Congress, since its inception hi 1997, the
Drinking Water State Revolving Fund (DWSRF) program has made available $5.2 billion to
finance 1,900 infrastructure improvement projects nationwide, with a return of $1.60 for every
$1 of federal funds invested.

State Flexibility between SRFs: The Agency requests continuation of authority provided in the
1996 Safe Drinking Water Act (SDWA) Amendments which allows states to transfer an amount
equal to 33 percent of their DWSRF grants to their CWSRF programs, or an equivalent amount
from then: CWSRF program to their DWSRF program.   The transfer provision gives states
flexibility to address the most critical demands  in either program at a given tune. The statutory
transfer provision expired September 30, 2002.

Set-Asides for Tribes:  To  improve public health and water quality in Indian Country, the
Agency will  continue the 1  1/2%  set-aside of the  CWSRF for wastewater grants to tribes as
provided in the Agency's 2002 appropriation. More than 70,000 homes in Indian country have
inadequate or nonexistent wastewater treatment.  EPA  and the Indian Health Service estimate
that Tribal wastewater infrastructure needs exceed $650.0 million.

Alaska Native Villages

       The President's Budget includes.  $40.0 million for  Alaska  native villages  for the
construction of wastewater and drinking water facilities to address serious sanitation problems.
EPA will continue to work with the Department of Health and Human Services' Indian Health
Service, the State of Alaska, and local communities to provide needed financial and technical
assistance.
                                         SA-39

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                             Environmental Protection Agency

            FY 2005 Annual Performance Plan and Congressional Justification

Puerto Rico

       The President's Budget includes $4 million for the design of upgrades to Metropolitano's
Sergio Cuevas treatment plant hi San Juan, Puerto Rico. When all upgrades are complete, EPA
estimates that about 1.4 million people will enjoy safer, cleaner drinking water.

GOAL 4: HEALTHY COMMUNITIES AND ECOSYSTEMS

Brownfields Environmental Projects

       The President's Budget includes a total of $120.5 million for brownfields environmental
projects. EPA will award grants for assessment activities, cleanup, and Brownfields cleanup
revolving loan funds (BCRLF). Additionally, this includes cleanup of sites contaminated by
petroleum or petroleum products and environmental job training grants.

Mexico Border

       The  President's Budget includes  a total of $50.0 million for water infrastructure projects along the
U.S./Mexico Border.  The goal of this program is to  reduce environmental and human health risks along the
U.S./Mexico Border.  The communities along both sides  of the Border are  facing unusual human health and
environmental threats because of the lack of adequate wastewater and drinking water facilities. EPA's U.S./Mexico
Border program provides funds to support the  planning,  design and construction  of high priority water and
wastewater treatment projects along the U.S./Mexico Border. The Agency's FY 2005 goal is to have a cumulative
total of 1.5 million people in the Mexico  border area protected from health risks because of adequate water and
wastewater sanitation systems funded.
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              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification
                 PROGRAM PROJECTS
                  (Dollars in Thousands)
Program Project
Acquisition Management
Acquisition Management
Acquisition Management
Administrative Law
Alternative Dispute Resolution
Alternative Dispute Resolution
Audits, Evaluations, and Investigations
Audits, Evaluations, and Investigations
Base Realignment and Closure (BRAC)
Beach / Fish Programs
Brownfields
Brownfields
Categorical Grant: Beaches Protection
Categorical Grant: Brownfields
Categorical Grant: Environmental
Information
Categorical Grant: Hazardous Waste
Financial Assistance
Categorical Grant: Homeland Security
Categorical Grant: Lead
Categorical Grant: Nonpoint Source
(Sec. 3 19)
Categorical Grant: Pesticides
Enforcement
Categorical Grant: Pesticides Program
Implementation
Categorical Grant: Pollution Control
(Sec. 106)
Categorical Grant: Pollution Prevention
Categorical Grant: Public Water System
Supervision (PWSS)
Categorical Grant: Radon
Appropriation
EPM
SUPERFUND
LUST
EPM
EPM
SUPERFUND
SUPERFUND
IG
SUPERFUND
EPM
EPM
SUPERFUND
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
FY2003
Actuals
$24,061.8
$16,452.8
$226.3
$4,464.4
$877.9
$0.0
$12,110.4
$34,502.5
($6.5)
$3,197.3
$20,635.1
$1,978.3
$7,473.3
$48,605.7
$18,514.0
$104,940.8
$4,508.5
$15,137.6
$228,776.9
$20,341.8
$13,165.5
$193,648.9
$5,360.4
$92,694.2
$9,415.3
FY2004
Pres. Bud.
$25,227.6
$16,417.8
$200.9
$4,705.1
$1,153.4
$0.0
$13,213.6
$36,807.7
$0.0
$3,689.5
$27,820.6
$0.0
$10,000.0
$60,000.0
$25,000.0
$106,400.0
$5,000.0
$13,700.0
$238,500.0'
$19,900.0
$13,100.0
$200,400.0
$6,000.0
$105,100.0
$8,150.0
FY2005
Pres. Bud.
$24,264.3
$19,028.5
$366.7
$4,929.3
$1,014.9
$874.7
$13,138.6
$37,997.0
$0.0
$3,237.6
$28,002.3
$0.0
$10,000.0
$60,000.0
$25,000.0
$106,400.0
$5,000.0
$13,700.0
$209,100.0
$19,900.0
$13,100.0
$222,400.0
$6,000.0
$105,100.0
$8,150.0
                          SA-41

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              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification

                 PROGRAM PROJECTS
                  (Dollars in Thousands)
Program Project
Categorical Grant: Targeted Watersheds
Categorical Grant: Toxics Substances
Compliance
Categorical Grant: Tribal General
Assistance Program
Categorical Grant: Underground
Injection Control (UIC)
Categorical Grant: Underground Storage
Tanks
Categorical Grant: Wastewater Operator
Training
Categorical Grant: Water Quality
Cooperative Agreements
Categorical Grant: Wetlands Program
Development
Categorical Grant: Sector Program
Categorical Grant: State and Local Air
Quality Management
Categorical Grant: State and Tribal
Performance Fund
Categorical GrantTribal Air Quality
Management
Central Planning, Budgeting, and Finance
Central Planning, Budgeting, and Finance
Central Planning, Budgeting, and Finance
Children and other Sensitive Populations
Civil Enforcement
Civil Enforcement
Civil Enforcement
Civil Rights / Title VI Compliance
Clean Air Allowance Trading Programs
Clean Air Allowance Trading Programs
Climate Protection Program
Climate Protection Program
Commission for Environmental
Appropriation
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
EPM
SUPERFUND
LUST
EPM
EPM
SUPERFUND
OIL
EPM
EPM
S&T
EPM
S&T
EPM
FY2003
Actuals
$12,940.0
$5,229.8
$56,577.4
$10,465.7
$11,655.8
$0.0
$18,155.7
$14,206.2
$2,609.9
$229,633.4
$0.0
$13,483.1
$55,931.3
$18,303.9
$654.2
$3,737.1
$100,780.1
$133.2
$1,423.1
$8,491.7
$15,520.7
$4,189.4
$82,169.5
$19,588.0
$4,374.0
FY2004
Pres. Bud.
$20,000.0
$5,150.0
$62,500.0
$11,000.0
$11,950.0
$0.0
$19,000.0
$20,000.0
$2,250.0
$228,550.0
$0.0
$11,050.0
$62,043.4
$23,150.4
$949.6
$7,080.4
$108,751.1
$142.7
$1,588.2
$12,113.8
$16,453.2
$9,352.9
$91,289.6
$17,320.3
$3,937.8
FY2005
Pres. Bud.
$25,000.0
$5,150.0
$62,500.0
$11,000.0
$37,950.0
$1,500.0
$20,500.0
$20,000.0
$2,250.0
$228,550.0
$23,000.0
$11,050.0
$64,486.8
$21,218.1
$950.4
$7,121.3
$113,395.4
$142.0
$1,628.7
$12,414.2
$17,495.8
$9,352.9
$91,961.3
$17,458.9
$3,948.8
                          SA-42

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              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification

                 PROGRAM PROJECTS
                  (Dollars in Thousands)
Program Project
Cooperation
Compliance Assistance and Centers
Compliance Assistance and Centers
Compliance Assistance and Centers
Compliance Assistance and Centers
Compliance Incentives
Compliance Incentives
Compliance Monitoring
Congressional, Intergovernmental,
External Relations
Congressional, Intergovernmental,
External Relations
Congressionally Mandated Projects
Congressionally Mandated Projects
Congressionally Mandated Projects
Congressionally Mandated Projects
Criminal Enforcement
Criminal Enforcement
Drinking Water Programs
Drinking Water Programs
Endocrine Disrupters
Enforcement Training
Enforcement Training
Environment and Trade
Environmental Education
Environmental Justice
Environmental Justice
Exchange Network
Exchange Network
Facilities Infrastructure and Operations
Facilities Infrastructure and Operations
Facilities Infrastructure and Operations
Appropriation

EPM
LUST
OIL
S&T
EPM
SUPERFUND
EPM

EPM

SUPERFUND
EPM
SUPERFUND
STAG
S&T
EPM
SUPERFUND
EPM
S&T
EPM
EPM
SUPERFUND
EPM
EPM
EPM
SUPERFUND
EPM
SUPERFUND
B&F
EPM
SUPERFUND
FY2003
Actuals

$24,786.3
$401.9
$198.6
$268.0
$9,185.2
$403.8
$56,567.5

$54,010.1

$138.2
$79,980.2
$28.9
$274,231.1
$44,613.9
$30,874.4
$9,574.1
$83,373.3
$2,746.4
$7,075.1
$3,797.0
$864.5
$1,769.6
$5,281.0
$3,721.6
$770.6
$18,806.4
$2,476.0
$28,204.9
$284,373.5
$61,632.5
FY2004
Pres. Bud.

$27,205.8
$586.5
$279.9
$0.0
$9,081.2
$176.0
$58,155.0

$47,267.7

$184.5
$0.0
$0.0
$0.0
$0.0
$30,276.1
$7,800.7
$96,132.8
$2,952.7
$9,002.7
$3,283.9
$754.7
$1,702.6
$0.0
$4,144.3
$900.0
$30,370.2
$2,925.1
$31,418.0
$313,311.4
$63,837.8
FY2005
Pres. Bud.

$27,759.1
$585.3
$276.6
$0.0
$9,195.1
$175.6
$62,216.7

$48,366.0

$184.0
$0.0
$0.0
$0.0
$0.0
$31,370.0
$8,535.7
$97,947.9
$2,999.7
$9,037.3
$3,302.4
$755.7
$1,723.1
$0.0
$4,230.5
$900.0
$25,419.7
$2,342.5
$31,418.0
$326,793.8
$70,981.9
                          SA-43

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              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification

                 PROGRAM PROJECTS
                  (Dollars in Thousands)
Program Project
Facilities Infrastructure and Operations
Facilities Infrastructure and Operations
Facilities Infrastructure and Operations
Federal Stationary Source Regulations
Federal Support for Air Quality
Management
Federal Support for Air Quality
Management
Federal Support for Air Toxics Program
Federal Support for Air Toxics Program
Federal Vehicle and Fuels Standards and
Certification
Financial Assistance Grants / IAG
Management
Financial Assistance Grants / LAG
Management
Forensics Support
Forensics Support
Geographic Program: Chesapeake Bay
Geographic Program: Great Lakes
Geographic Program: Gulf of Mexico
Geographic Program: Lake Champlain
Geographic Program: Long Island Sound
Geographic Program: Other
Great Lakes Legacy Act
Homeland Security: Communication and
Information
Homeland Security: Critical
Infrastructure Protection
Homeland Security: Critical
Infrastructure Protection
Homeland Security: Critical
Infrastructure Protection
Homeland Security: Preparedness,
Response, and Recovery
Appropriation
LUST
OIL
S&T
EPM
EPM
S&T
EPM
S&T

S&T

EPM

SUPERFUND
SUPERFUND
S&T
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
SUPERFUND
S&T
EPM
FY2003
Actuals
$1,036.7
$503.6
$9,249.6
$19,120.1
$83,423.5
$9,950.6
$27,092.6
$1,426.0

$55,525.5

$15,073.7

$2,718.5
$3,264.7
$11,581.2
$21,755.2
$16,810.7
$4,383.0
$2,666.6
$2,225.5
$5,73 L7
$0.0
$874.0
$3,820.0
$361.1
$14,186.4
$688.8
FY2004
Pres. Bud.
$1,053.1
$504.4
$8,715.8
$23,702.2
$87,004.8
$10,033.3
$26,498.2
$2,560.0

$60,446.8

$17,373.8

$2,939.6
$5,695.9
$12,562.5
$20,777.7
$18,104.2
$4,431.7
$954.8
$477.4
$4,762.5
$15,000.0
$3,820.3
$6,844.2
$770.7
$24,782.3
$1,827.4
FY2005
Pres. Bud.
$883.9
$504.4
$8,715.8
$24,302.0
$93,283.6
$10,048.7
$25,181.2
$2,582.9

$64,466.5

$20,328.9

$2,933.2
$4,189.3
$12,721.5
$20,816.6
$21,194.8
$4,477.8
$954.8
$477.4
$6,789.7
$45,000.0
$4,320.3
$6,840.8
$852.6
$3,515.6
$1,839.8
                          SA-44

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              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification

                 PROGRAM PROJECTS
                  (Dollars in Thousands)
Program Project
Homeland Security: Preparedness,
Response, and Recovery
Homeland Security: Preparedness,
Response, and Recovery
Homeland Security: Protection of EPA
Personnel and Infrastructure
Homeland Security: Protection of EPA
Personnel and Infrastructure
Homeland Security: Protection of EPA
Personnel and Infrastructure
Homeland Security: Protection of EPA
Personnel and Infrastructure
Human Health Risk Assessment
Human Health Risk Assessment
Human Resources Management
Human Resources Management
Human Resources Management
Indoor Air: Asthma Program
Indoor Air: Environment Tobacco
Smoke Program
Indoor Air: Radon Program
Indoor Air: Radon Program
Indoor Air: Schools and Workplace
Program
Indoor Air: Schools and Workplace
Program
Information Security
Information Security
Information Security
Infrastructure Assistance: Alaska Native
Villages
Infrastructure Assistance: Brownfields
Projects
Infrastructure Assistance: Clean School
Bus Initiative
Infrastructure Assistance: Clean School
Appropriation
SUPERFUND
S&T
B&F
EPM
SUPERFUND
S&T
SUPERFUND
S&T
EPM
SUPERFUND
LUST
EPM

EPM
EPM
S&T
EPM
S&T
EPM
SUPERFUND
S&T

STAG

STAG

EPM
STAG
FY2003
Actuals
$66,237.6
$3,273.7
$10,281.4
$23,719.6
$0.0
$5,967.1
$1,796.4
$25,739.6
$39,536.6
$6,955.1
$0.0
$9,062.6

$2,832.8
$5,376.3
$467.3
$7,955.7
$1,049.5
$19,594.1
$1,948.9
($26.8)

$41,810.6

$81,953.4

$0.0
$0.0
FY2004
Pres. Bud.
$35,625.2
$24,917.6
$11,500.0
$6,288.0
$600.0
$2,100.0
$3,916.9
$32,578.1
$42,384.6
$6,803.4
$3.0
$11,097.0

$3,617.5
$5,492.2
$378.9
$10,320.2
$856.0
$13,337.4
$0.0
$0.0

$40,000.0

$120,500.0

$1,500.0
$0.0
FY2005
Pres. Bud.
$29,163.2
$25,396.0
$11,500.0
$6,344.3
$600.0
$2,100.0
$3,951.8
$32,880.4
$44,139.5
$4,410.6
$3.0
$11,197.3

$3,695.1
$5,667.1
$398.5
$10,352.1
$906.1
$4,188.3
$508.9
$0.0

$40,000.0

$120,500.0

$0.0
$65,000.0
                         SA-45

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              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification

                 PROGRAM PROJECTS
                  (Dollars in Thousands)
Program Project
Bus Initiative
Infrastructure Assistance: Clean Water
SRF
Infrastructure Assistance: Drinking
Water SRF
Infrastructure Assistance: Mexico Border
Infrastructure Assistance: Puerto Rico
International Capacity Building
IT / Data Management
IT / Data Management
IT / Data Management
IT / Data Management
IT / Data Management
Legal Advice: Environmental Program
Legal Advice: Environmental Program
Legal Advice: Support Program
LUST/UST
LUST/UST
LUST Cooperative Agreements
LUST Cooperative Agreements
Marine Pollution
National Estuary Program / Coastal
Waterways
NEPA Implementation
Offsetting Receipts
Oil Spill: Prevention, Preparedness and
Response
Pesticides: Field Programs
Pesticides: Registration of New
Pesticides
Pesticides: Registration of New
Pesticides
Pesticides: Review / Reregistration of
Appropriation

STAG
STAG
STAG
STAG
EPM
EPM
SUPERFUND
LUST
OIL
S&T
EPM
SUPERFUND
EPM
EPM
LUST
EPM
LUST
EPM
EPM
EPM
Offsetting
Receipts
OIL
EPM
EPM
S&T
EPM
FY2003
Actuals

$1,386,537.4
$866,607.7
$113,426.6
$0.0
$11,774.0
$88,443.9
$16,381.7
$52.2
$37.7
$3,527.6
$33,132.3
$781.4
$8,871.3
$6,770.6
$12,645.8
$10.8
$55,787.9
$7,070.0
$22,712.0
$11,204.2
$0.0
$12,543.8
$21,120.5
$40,362.9
$2,096.0
$48,487.3
FY2004
Pres. Bud.

$850,000.0
$850,000.0
$50,000.0
$8,000.0
$6,176.9
$116,081.7
$17,459.0
$143.7
$23.8
$4,057.8
$33,879.1
$843.8
$12,240.9
$7,144.2
$10,581.0
$0.0
$58,399.1
$12,049.9
$19,094.2
$12,315.4
($4,000.0)
$12,897.5
$25,757.7
$33,699.0
$2,282.6
$61,933.8
FY2005
Pres. Bud.

$850,000.0
$850,000.0
$50,000.0
$4,000.0
. $6,854.0
$133,182.4
$18,067.3
$177.6
$32.8
$4,821.4
$34,678.8
$844.0
$12,521.7
$7,094.5
$10,499.6
$0.0
$58,450.0
$12,296.0
$19,229.3
$12,654.2
($30,000.0)
$13,064.7
$27,185.9
$42,907.0
$2,403.2
$58,053.9
                          SA-46

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              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification

                 PROGRAM PROJECTS
                  (Dollars in Thousands)
Program Project
Existing Pesticides
Pesticides: Review / Reregistration of
Existing Pesticides
Pollution Prevention Program
POPs Implementation
Radiation: Protection
Radiation: Protection
Radiation: Protection
Radiation: Response Preparedness
Radiation: Response Preparedness
RCRA: Corrective Action
RCRA: Waste Management
RCRA: Waste Minimization &
Recycling
Regional Geographic Initiatives
Regional Science and Technology
Regulatory Innovation
Regulatory/Economic-Management and
Analysis
Research: Air Toxics
Research: Drinking Water
Research: Endocrine Disrupter
Research: Environmental Technology
Verification (ETV)
Research: Human Health and
Ecosystems
Research: Human Health and
Ecosystems
Research: Land Protection and
Restoration
Research: Land Protection and
Restoration
Research: Land Protection and
Restoration
Research: Land Protection and
Appropriation

S&T
EPM
EPM
EPM
SUPERFUND
S&T
EPM
S&T
EPM
EPM

EPM
EPM
EPM
EPM
EPM
S&T
S&T
S&T
S&T

SUPERFUND

S&T

SUPERFUND

LUST

OIL
S&T
FY2003
Actuals

$2,434.7
$15,450.3
$2,090.9
$11,111.8
$2,138.0
$3,860.4
$3,009.5
$1,119.3
$36,816.6
$59,706.6

$15,433.3
$6,855.9
$2,840.1
$14,082.3
$21,261.8
$14,257.2
$43,253.7
$13,161.9
$2,619.0

$1.8

$163,548.9

$14,190.3

$607.8

$875.9
$9,448.8
FY2004
Pres. Bud.

$2,380.6
$17,098.7
$2,224.4
$12,443.4
$2,336.5
$4,084.9
$2,401.0
$1,680.2
$40,363.8
$67,381.6

$12,771.6
$8,755.7
$3,609.2
$21,931.7
$18,468.6
$15,700.9
$46,053.4
$12,984.7
$4,011.8

$0.0

$190,730.8

$24,960.5

$628.5

$915.0
$10,064.5
FY2005
Pres. Bud.

$2,417.1
$22,496.2
$2,235.4
$11,811.7
$2,323.2
$2,847.0
$2,610.9
$2,239.0
$40,975.6
$67,422.3

$14,301.7
$8,799.5
$3,626.2
$21,992.2
$18,551.8
$17,638.9
$46,118.1
$8,044.0
$2,996.8

$0.0

$177,407.5

$22,671.1

$628.5

$917.8
$8,841.9
                          SA-47

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              Environmental Protection Agency

FY 2005 Annual Performance Plan and Congressional Justification

                 PROGRAM PROJECTS
                  (Dollars in Thousands)
Program Project
Restoration
Research: Particulate Matter
Research: Pesticides and Toxics
Research: Pollution Prevention
Research: Pollution Prevention
Research: SITE Program
Research: Troposphere Ozone
Research: Water Quality
Research: Computational Toxicology
Research: Fellowships
Research: Global Change
Science Advisory Board
Science Policy and Biotechnology
Small Business Ombudsman
Small Minority Business Assistance
State and Local Prevention and
Preparedness
Stratospheric Ozone: Domestic Programs
Stratospheric Ozone: Multilateral Fund
SUPERFUND: Emergency Response
and Removal
SUPERFUND: Enforcement
SUPERFUND: EPA Emergency
Preparedness
SUPERFUND: EPA Emergency
Preparedness
SUPERFUND: Federal Facilities
SUPERFUND: Federal Facilities lAGs
SUPERFUND: Remedial
SUPERFUND: Support to Other Federal
Agencies
Surface Water Protection
Toxic Substances: Chemical Risk
Management
Appropriation

S&T
S&T
SUPERFUND
S&T
SUPERFUND
S&T
S&T
S&T
S&T
S&T
EPM
EPM
EPM
EPM
EPM
EPM
EPM
SUPERFUND
SUPERFUND
EPM
SUPERFUND
SUPERFUND
SUPERFUND
SUPERFUND
SUPERFUND
EPM
EPM
FY2003
Actuals

$64,437.9
$32,664.7
$408.9
$31,095.2
$4,781.1
$4,804.2
$46,934.1
$5,436.9
$2,040.8
$22,354.9
$3,748.7
$850.2
$3,048.6
$2,105.8
$10,273.0
$5,994.8
$9,518.9
$217,880.1
$158,487.3
($0.2)
$17,927.0
$28,838.1
$6,749.0
$656,387.4
$10,178.8
$169,838.6
$10,464.4
FY2004
Pres. Bud.

$63,620.6
$36,784.8
$593.0
$38,405.6
$6,941.1
$4,942.3
$47,178.5
$8,948.6
$6,402.8
$21,528.6
$4,409.0
$1,603.8
$3,764.9
$2,214.5
$12,508.1
$5,786.6
$11,000.0
$199,803.9
$155,307.5
$0.0
$10,130.1
$32,744.2
$10,022.6
$732,042.6
$10,676.0
$190,234.5
$9,243.1
FY2005
Pres. Bud.

$63,690.8
$29,017.7
$593.0
$33,467.5
$6,927.7
$4,900.9
$46,809.8
$13,028.7
$8,261.6
$20,689.6
$4,757.1
$1,707.2
$3,838.7
$2,282.0
$12,134.8
$5,839.6
$13,500.0
$201,088.0
$155,537.2
$0.0
$10,091.4
$32,182.0
$10,044.4
$725,483.8
$10,676.0
$191,796.6
$9,514.2
                          SA-48

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                           Environmental Protection Agency
           FY 2005 Annual Performance Plan and Congressional Justification
                              PROGRAM PROJECTS
                               (Dollars in Thousands)
Program Project
Toxic Substances: Chemical Risk
Review and Reduction
Appropriation
Credit Subsidy
Re-estimate
FY2003
Actuals
$905.5
FY2004
Pres. Bud.
$0.0
FY2005
Pres. Bud.
$0.0
Toxic Substances: Chemical Risk
Review and Reduction
Toxic Substances: Lead Risk Reduction
Program
TRI / Right to Know
TRI / Right to Know
Tribal - Capacity Building
US Mexico Border
Wetlands
EPM
$41,306.9
$45,536.2
$45,878.8
EPM
EPM
S&T
EPM
EPM
EPM
$11,263.0
$14,490.6
$197.0
$9,555.8
$4,967.7
$17,129.2
$14,832.9
$14,609.2
$81.4
$10,494.1
$6,484.4
$19,299.9
$11,082.6
$15,940.9
. $0.0
$10,641.7
$5,784.8
$19,752.8
                                        SA-49

-------
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1.
2.
3.
                                         Environmental Protection Agency




                           FY 2005 Annual Performance Plan and Congressional Justification





                                                  AIR TOXICS
Recommendation
Increase funding for toxic air pollutant programs
in the FY 2004 budget by $7 million in State
grants for monitoring to help fill data gaps,
Next Milestone
Final funding level will be determined during the
agency's FY 2004 operating plan development
process.
Completion Date
04/01/04
Next Milestone Date
04/01/04
On Track? (Y/N)
Y
Lead Organization
Office of Air and
Radiation
Comments on Status
Requested funding provided by
Congress.
Lead Official
Jerry Kurtzweg

Recommendation
Focus on maximizing programmatic net benefits
and mlaamtang the cost per deleterious health
effect avoided
Next Milestone
Completion of remaining MACT standards
Completion Date
Ongoing
Next Milestone Date
02/29/04
On Track? (Y/N)
Y
Lead Organization
Office of Air and
Radiation
Comments on Status
EPA will complete the
remaining MACT standards
and continue work on the
residual risk program.
Lead Official
Jerry Kurtzweg

Recommendation
Establish better performance measures ^including
a» appropriate efficiency measure).

Completion Date
Ongoing

On Track? (Y/N)
Y

Comments on Status
Proposed efficiency measure
submitted to OMB in PART
update. For further information
consult the Efficiency
Measures / Measure
Development Plan subsection
within the Goal 1 Objective 1
                                                     SA-51

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                                            Environmental Protection Agency
                             FY 2005 Annual Performance Plan and Congressional Justification
                  Next Milestone
   Potential efficiency measures identified; further
   analysis needed to develop measure.
                                            Next Milestone Date
                                                  07/01/04
                   Lead Organization
                    Office of Air and
                        Radiation
                  section. For further
                  information consult the
                  Efficiency Measures / Measure
                  Development Plan subsection
                  within the Goal 1 Objective 1
                  section.
                          Lead Official
                         Jerry Kurtzweg
                                          NONPOINT SOURCE PROGRAM
1.
             Recommendation
Develop an owtetMae-based efficiency measure
that demonstrates the ttiarginal       to ibe
enviroianaettt per dollars expended for ffee
progcam
Completion Date
    09/04/04
On Track? (Y/N)
       Y
                  Next Milestone

   Continue to work with state partners to improve
   efficiency measure and develop actions based on
   OMB's 05 recommendations
                                             Next Milestone Date

                                                  06/30/04
                    Lead Organization

                      Office of Water
    Comments on Status
OMB approved revised long-
term performance measures
but rejected efficiency measure
in 05 PART reassessment.
Program will work with OMB
to develop efficiency measure.
For further information consult
the Efficiency Measures /
Measure Development Plan
subsection within the Goal 2
Objective 2 section.
       Lead Official

        Mike Mason
                                                         SA-52

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                                          Environmental Protection Agency

                            FY 2005 Annual Performance Plan and Congressional Justification
                             SUPERFUND/CERCLA REMOVAL/EMERGENCY RESPONSE
1.
             Recommendation

Establish better "Outcome" perfofmaaee
measures
Completion Date     On Track? (Y/N)

     TBD                 Y
                 Next Milestone
   Effectiveness measure developed for testing
                                           Next Milestone Date
                                                03/01/04
                   Lead Organization
                  Office of Solid Waste
                     and Emergency
                  	Response	
    Comments on Status

OSWER currently has a
contractor tasked with
reviewing historical Removal
Action data to determine what
types of measures of
effectiveness of removals
(such as lives saved or
protected, environment
protected, etc.) might be
workable, especially to show
improvement from one year to
the next. For further
information consult the
Efficiency Measures / Measure
Development Plan subsection
within the Goal 3 Objective 2
section.
       Lead Official
       Dana Stalcup
2.
             Recommendation
Completion Date     On Track? (Y/N)
    Comments on Status
                                                       SA-53

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                                           Environmental Protection Agency
                             FY 2005 Annual Performance Plan and Congressional Justification
    Establish efficiency measures.
                                      TBD
                  Next Milestone
    Draft efficiency measure developed
                               Next Milestone Date
                                     10/01/04
                    Lead Organization
                   Office of Solid Waste
                   and Emergency
                   Response	
We have begun looking at
ways to categorize different
types of removals, based on
things such as size and
complexity, to allow for
possible efficiency analyses.
For further information consult
the Efficiency Measures /
Measure Development Plan
subsection within the Goal 3
Objective 2 section
       Lead Official
        Dana Stalcup
3.
Recommendation
Completion Date     On Track? (Y/N)
    Comments on Status
                                                        SA-54

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                                          Environmental Protection Agency
                          FY 2005 Annual Performance Plan and Congressional Justification
Increase Efforts in Program Evaluation
       TBD
               Next Milestone
All relevant program offices participate in
ongoing Program Evaluation Network meetings
and provide input to the evaluation planning
process.	
Next Milestone Date
      03/30/04
 Lead Organization
Office of Solid Waste
   and Emergency
     Response
While the Superfund removal
program does not have a
planned regular, independent
program evaluation process,
we have conducted program
reviews of recent responses
(such as the World Trade
Center and the Anthrax
responses). In addition,
OSWER has recently
implemented an office-wide
Program Evaluation Team and
Network to foster increased
program evaluation efforts
across all OSWER programs,
including the Superfund
removal program.  Priorities
for evaluation will be based on
the potential risks/
vulnerabilities posed by a
program or component thereof
and the potential improvement
in operation and efficiency that
could be gained from that
evaluation.
        Lead Official
       Bruce Pumphrey
                                                      SA-55

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                                            Environmental Protection Agency
                             FY 2005 Annual Performance Plan and Congressional Justification
4.
             Recommendation
Improve Strategic Planning
Completion Date     On Track? (Y/N)
      TBD                 Y
                  Next Milestone
    Complete WTC/Anthrax Lesson Learned
    Implement National Approach to Response, and
    assess its effectiveness
                                            Next Milestone Date   Lead Organization
                                                                 Office of Solid Waste
                                                                   and Emergency
                                                 Completed            Response
                                                03/30/04 and
                                                  10/31/04
    Comments on Status
While the Superftind Removal
program, by its emergency and
response orientation, does not
have a regular strategic
planning process in place, we
have taken significant
programmatic action as a result
of lessons learned from the
World Trade Center and
Anthrax responses.  The
National Approach to
Response (NAR) was
developed to deal with many
of the issues identified during
those responses. A national
work plan to implement the
NAR has been issued which
provides strategic direction for
the removal program over the
next several years.
        Lead Official
                                               Dana Stalcup
5.
             Recommendation
Completion Date      On Track? (Y/N)
    Comments on Status
                                                         SA-56

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                                            Environmental Protection Agency
                             FY 2005 Annual Performance Plan and Congressional Justification
    Improve Collection of Program Performance
    Data
                                      TBD
                 Next Milestone
   Complete WTC/Anthrax Lesson Learned
   Implement National Approach to Response, and
   assess its effectiveness
                               Next Milestone Date
                                   Completed
                                    02/29/04
                   Lead Organization
                   Office of Solid Waste
                     and Emergency
                        Response
We are currently collecting
program performance data via
the Core ER, and will continue
to improve the data collection
and performance analysis
process over the next year.  We
have taken significant
programmatic action as a result
of lessons learned from the
World Trade Center and
Anthrax responses. The
National Approach to
Response (NAR) was
developed to deal with many
of the issues identified during
those responses. A national
work plan to implement the
NAR has been issued which
provides strategic direction for
the removal program over the
next several years.
       Lead Official
        Dana Stalcup
                                   DRINKING WATER STATE REVOLVING FUND
1.
Recommendation
Completion Date     On Track? (Y/N)
    Comments on Status
                                                        SA-57

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                                            Environmental Protection Agency
                             FY 2005 Annual Performance Plan and Congressional Justification
   Develop an outcome efficiency measure that
   demonstrates the marginal benefit to public
   health per dollars expended for the program.
                  Next Milestone
   Continue to develop efficiency measures
                                                  9/30/04
                             Y
                                            Next Milestone Date   Lead Organization
                                                  06/01/04
                       Office of Water
                    OMB reassessment in FY O5
                    approved revised performance
                    measures but rejected proposed
                    efficiency measures.  TheDW
                    SRF program will work with
                    its state partners in developing
                    efficiency measures.  For
                    further information consult the
                    Efficiency Measures / Measure
                    Development Plan subsection
                    within the Goal 2 Objective 1
                    section.
                            Lead Official
                            Mike Mason
                                             PESTICIDE REGISTRATION
1.
             Recommendation

Improve long-term performance measures;
develop baselines and targets; improve outcome
focus

              Next Milestone

Proceed with analysis of potential measures:
analysis funded; next step:  complete analysis
 Completion Date

      ongoing



Next Milestone Date

      09/30/04
 On Track? (Y/N)

        Y



Lead Organization

Office of Prevention,
Pesticides, and Toxic
     Substances
    Comments on Status

Revisions to long-term
measures made in new
strategic plan; additional
measures under analysis.
       Lead Official

        Carol Terris
2.
             Recommendation
  Completion Date     On Track? (Y/N)
                        Comments on Status
                                                         SA-58

-------
                                            Environmental Protection Agency
                             FY 2005 Annual Performance Plan and Congressional Justification
    Improve long-term performance measures;
    develop baselines and targets; improve outcome
    focus

                  Next Milestone
    One potential outcome measure/data set
    identified. Next step: integrate into program
    operation.	
                                                  09/30/04
                                            Next Milestone Date
                                                  09/30/04
                    Lead Organization
                   Office of Prevention,
                   Pesticides, and Toxic
                        Substances
Revisions to long-term
measures made in new
strategic plan; additional
measures under analysis.
       Lead Official
        Carol Terris
                                            PESTICIDE REREGISTRATION
1.
             Recommendation

Improve long-term performance measures:
develop baselines and targets; improve outcome
focus.

              Next Milestone

Proceed with analysis of potential measures:
analysis funded; next step: complete analysis
Completion Date      On Track? (Y/N)

    Ongoing                Y
                                                Next Milestone Date   Lead Organization
                                                      9/30/04
                   Office of Prevention,
                   Pesticides, and Toxic
                        Substances
    Comments on Status

Revisions to long-term
measures made in new
strategic plan; additional
measures under analysis.
       Lead Official

        Carol Terris
                                                  NEW CHEMICALS
1.
                 Recommendation
                                              Completion Date     On Track? (Y/N)
                                           Comments on Status
                                                        SA-59

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                                            Environmental Protection Agency
                             FY 2005 Annual Performance Plan and Congressional Justification
    Establish more outcome-oriented measures
    including at least one efficiency measure.
                                                   9/30/04
                  Next Milestone

    Amualized targets developed.
                                             Next Milestone Date   Lead Organization

                                                  06/30/04        Office of Prevention,
                                                                  Pesticides, and Toxic
                                                                      Substances
                                        Improved outcome and
                                        efficiency measure in place but
                                        more work is underway to
                                        develop/refine annualized
                                        targets. OCFO/OPEI funded
                                        project to improve efficiency
                                        and outcome measures for
                                        New Chemicals program this
                                        year. For further information
                                        consult the Efficiency
                                        Measures / Measure
                                        Development Plan subsection
                                        within the Goal 4 Objective 1
                                        section.
                                               Lead Official

                                                Carol Terris
2.
             Recommendation

Improvement of the program's strategic planning,
including an independent evaluation of the
program, which can result in significant
improvement of program results.
              Next Milestone

Canadian peer review of PMN process and tools
initiated in '03
Completion Date

    09/30/04
On Track? (Y/N)

       Y
                                                Next Milestone Date   Lead Organization

                                                      09/30/04        Office of Prevention,
                                                                     Pesticides, and Toxic
                                                                         Substances
    Comments on Status

FDA independent assessment
submitted
                                               Lead Official

                                                Carol Terris
                                                         SA-60

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                                         Environmental Protection Agency

                          FY 2005 Annual Performance Plan and Congressional Justification
                                            EXISTING CHEMICALS
              Recommendation

Establish better performance measures
               Next Milestone
Monitor against revised targets
  Completion Date     On Track? (Y/N)
      09/30/04
Next Milestone Date   Lead Organization
      Ongoing        Office of Prevention,
                     Pesticides, and Toxic
                         Substances
                        Comments on Status

                    RSEI analyses were shared
                    with OMB as part of the EPA
                    Appeal to the FY 2005 PART
                    results. A new long-term,
                    ambitious target was
                    established for the RSEI goal
                    and annual targets reflect
                    incremental progress towards
                    the longer-term goal.
                           Lead Official
                            Carol Terris
             Recommendation

Establish efficiency measures,



               Next Milestone

Three potential efficiency measures identified,
further analysis needed to verify or develop
baselines/metrics
  Completion Date

     09/30/04



Next Milestone Date

     09/30/04
 On Track? (Y/N)

        Y



Lead Organization

Office of Prevention,
Pesticides, and Toxic
    Substances
    Comments on Status

Potential efficiency measures
have been developed but
additional program and trends
analysis required.
       Lead Official

        Carol Terris
                                                     SA-61

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                                       Environmental Protection Agency

                         FY 2005 Annual Performance Plan and Congressional Justification

                 AMERICAN INDIAN ENVIRONMENTAL GENERAL ASSISTANCE PROGRAM
             Recommendation
Encourage EPA to develop
performance targets fear its annual and efficiency
 Completion Date     On Track? (Y/N)
     09/30/04
measures,
              Next Milestone

Work with tribal partners to develop more
accurate targets.
Next Milestone Date   Lead Organization

     09/30/04             Office of
                      Water/American
                    Indian Environmental
                          Office
    Comments on Status

OMB approved revised
performance measures in 05
PART reassessment. Program
rating moved from "results not
demonstrated" to "adequate."
For further information consult
the Efficiency Measures /
Measure Development Plan
subsection within the Goal 5
Objective 3 section.
       Lead Official

        Mike Mason
                                           CIVIL ENFORCEMENT
             Recommendation
  Completion Date     On Track? (Y/N)
    Comments on Status
Fund '$5 raiffioii ia the FY 2004       for an
improved compliance data system.
      9/31/03
Five million dollars for
modernization of the Clean
Water Act (CWA) data system
was included in the President's
FY 2004 Budget. This is the
second phase of the compliance
                                                   SA-62

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                                         Environmental Protection Agency
                          FY 2005 Annual Performance Plan and Congressional Justification
                                                                                      data system modernization
                                                                                      effort known as ICIS (Integrated
                                                                                      Compliance Information
                                                                                      System). Continued delay in
                                                                                      passage of EPA's FY 2004
                                                                                      appropriations bill may delay
                                                                                      efforts to modernize the CWA
                                                                                      data system.  	
               Next Milestone
Next Milestone Date
Lead Organization
Lead Official
Final funding level will be determined during the
agency's FY 2004 operating plan development
process.
     04/01/04
     Office of
 Enforcement and
   Compliance
    Assurance
Michael Stahl
                                                      SA-63

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                         Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                               SPECIAL ANALYSIS
Acquisition Management, SA-41
Administrative Law, SA-41
Alternative Dispute Resolution, SA-41
Audits, Evaluations, and Investigations, SA-
  41
Base Realignment and Closure (BRAC),
  SA-41
Beach / Fish Programs, SA-41
Brownfields, SA-18, SA-21, SA-24, SA-31,
  SA-37, SA-38, SA-40, SA-41, SA-45
Brownfields Projects, SA-45
Categorical Grant
  Beaches Protection, SA-41
  Brownfields, SA-41
  Environmental Information, SA-41
  Hazardous Waste Financial Assistance,
     SA-41
  Homeland Security, SA-41
  Lead, SA-41
  Nonpoint Source (Sec. 319), SA-41
  Pesticides Enforcement, SA-41
  Pesticides Program Implementation, SA-
     41
  Pollution Control (Sec. 106), SA-41
  Pollution Prevention, SA-41
  Public Water System Supervision
     (PWSS), SA-41
  Radon, SA-41
  Sector Program, S A-42
  State and Local Air Quality Management,
     SA-42
  State and Tribal Performance Fund, SA-
     42
  Targeted Watersheds, SA-42
  Toxics Substances Compliance, SA-42
  Tribal Air Quality Management, SA-42
  Tribal General Assistance Program, SA-
     42
  Underground Injection Control (UIC),
     SA-42
  Underground Storage Tanks, SA-42
  Wastewater Operator Training, SA-42
  Water Quality Cooperative Agreements,
    SA-42
  Wetlands Program Development, SA-42
Central Planning, Budgeting, and Finance,
  SA-42
Children and other Sensitive Populations,
  SA-42
Civil Enforcement, SA-42, SA-62
Civil Rights / Title VI Compliance, SA-42
Clean Air Allowance Trading Programs,
  SA-42
Clean School Bus Initiative, SA-18, SA-37,
  SA-45, SA-46
Climate Protection Program, SA-42
Commission for Environmental
  Cooperation, SA-43
Compliance Assistance and Centers, SA-43
Compliance Incentives, SA-43
Compliance Monitoring, SA-43
Congressional, Intergovernmental, External
  Relations, SA-43
Congressionally Mandated Projects, SA-43
Criminal Enforcement, SA-43
Drinking Water Programs, SA-43
Endocrine Disrupters, SA-43
Enforcement Training, SA-43
Environment and Trade, SA-43
Environmental Education, SA-43
Environmental Justice, SA-43
Exchange Network, SA-9, SA-21, SA-34,
  SA-43
Facilities Infrastructure and Operations, SA-
  43, SA-44
Federal Stationary Source Regulations, SA-
  44
Federal Support for Air Quality
  Management, SA-44
Federal Support for Air Toxics Program,
  SA-44
Federal Vehicle and Fuels Standards and
  Certification, SA-44
Financial Assistance Grants / IAG
  Management, SA-44

-------
                         Environmental Protection Agency

           FY 2005 Annual Performance Plan and Congressional Justification

                              SPECIAL ANALYSIS
Forensics Support, SA-44
Geographic Program
  Chesapeake Bay, SA-44
  Great Lakes, SA-44
  Gulf of Mexico, SA-44
  Lake Champlain, SA-44
  Long Island Sound, SA-44
  Other, SA-44
Great Lakes Legacy Act, SA-44
Homeland Security
  Communication and Information, SA-44
  Critical Infrastructure Protection, SA-44
  Preparedness, Response, and Recovery,
    SA-44, SA-45
  Protection of EPA Personnel and
    Infrastructure, SA-45
Human Health Risk Assessment, SA-45
Human Resources Management, SA-45
Indoor Air
  Asthma Program, SA-45
  Environment Tobacco Smoke Program,
    SA-45
  Radon Program, SA-45
  Schools and Workplace Program, SA-45
Information Security, SA-8, SA-45
Infrastructure Assistance
  Alaska Native Villages, SA-45
  Clean Water SRF, SA-46
  Drinking Water SRF, SA-46
  Mexico Border, SA-46
  Puerto Rico, SA-46
International Capacity Building, SA-46
IT / Data Management, SA-46
Legal Advice
  Environmental Program, SA-46
  Support Program, SA-46
LUST/UST, SA-46
LUST Cooperative Agreements, SA-46
Marine Pollution, SA-46
Mexican Border, SA-18
National Estuary Program / Coastal
  Waterways, SA-46
NEPA Implementation, SA-46
Oil Spill
  Prevention, Preparedness and Response,
    SA-46
Pesticides
  Field Programs, SA-46
  Registration of New Pesticides, SA-46
  Review / Reregistration of Existing
    Pesticides, SA-47
Pollution Prevention Program, SA-47
POPs Implementation, SA-47
Radiation
  Protection, SA-47
  Response Preparedness,  SA-47
RCRA
  Corrective Action, SA-47
  Waste Management, SA-47
  Waste Minimization & Recycling, SA-47
Regional Geographic Initiatives, SA-47
Regional Science and Technology, SA-47
Regulatory Innovation, SA-9, SA-47
Regulatory/Economic-Management and
  Analysis, SA-47
Research
  Air Toxics, SA-47
  Computational Toxicology, SA-48
  Drinking Water, SA-47
  Endocrine Disrupter, SA-47
  Environmental Technology Verification
    (ETV), SA-47
  Fellowships, SA-48
  Global Change, SA-48
  Human Health and Ecosystems, SA-47
  Land Protection and Restoration, SA-47,
    SA-48
  Particulate Matter, SA-48
  Pesticides and Toxics, SA-48
  Pollution Prevention,  SA-48
  SITE Program,  SA-48
  Troposphere Ozone, SA-48
  Water Quality, SA-48
Science Advisory Board, SA-4, SA-48
Science Policy and Biotechnology, SA-48
Small Business Ombudsman, SA-48

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                         Environmental Protection Agency

          FY 2005 Annual Performance Plan and Congressional Justification

                              SPECIAL ANALYSIS

Small Minority Business Assistance, S A-48
State and Local Prevention and
  Preparedness, SA-48
Stratospheric Ozone
  Domestic Programs, SA-48
  Multilateral Fund, SA-48
Surface Water Protection, SA-48
Toxic Substances
  Chemical Risk Management, SA-48
  Chemical Risk Review and Reduction,
     SA-49
  Lead Risk Reduction Program, SA-49
TRI / Right to Know, SA-49
Tribal - Capacity Building, SA-49
US Mexico Border, SA-49
Wetlands, SA-22, SA-24, SA-28, SA-49

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