Summary of EPA's 2005 Budget
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                       United States Environmental Protection Agency
                        Office of the Chief Financial Officer (2710A)
                                  EPA-205-S-04-001
                                    February 2004
                                  www.epa.gov/ocfo
                          Photographs on the front and back covers
                           courtesy of Meridith Sebring, U.S. EPA
Recycled/Recyclable  Printed on 100% Postconsumer, Process Chlorine Free Recycled Paper

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                       Table of Contents

Introduction and Overview:
EPA's Mission and Goals	iii
Annual Plan and Budget Overview	v

Goals:
Goal 1: Clean Air And Global Climate Change	1-1
Goal 2: Clean and Safe Water	2-1
Goal 3: Land Preservation and Restoration	3-1
Goal 4: Healthy Communities and Ecosystems	4-1
Goal 5: Compliance and Environmental Stewardship	5-1

Appendices:
Categorical Grants Program	A-1
Infrastructure Financing	B-1
Trust Funds	C-1
Budget Tables:
   Agency Resources by Appropriation	D-1
   Agency Resources by Goal	D-2
   Agency Workforce by Goal  	D-3
   Program Projects	D-4
List of Acronyms	E-1

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                                                           EPA's Missions and Goals
                    EPA's Missions  and Goals
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 in its Strategic Plan that guide the Agency's
planning, budgeting, analysis, accountability, and implementation processes.

   1.  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.

   2.  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 in 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.

   3.  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.

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EPA's Missions and Goals
       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 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.

   4.  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.

   5.  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 in 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


                   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 Time 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 in 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
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 Clear Skies initiative draws
on EPA's experience to modernize the
Clean Air Act.  Using a market-based
The number of people living in areas with monitored
ambient ozone concentrations below the NAAQS for
approach, the Clear Skies initiative will   the one-hour ozone standard will increase by 4% for
 ™   ..  „      .                ,   .   a cumulative total of 53%.
dramatically  reduce   power   plant
emissions  of  three   of   the   most
significant air pollutants—sulfur dioxide (SO2), nitrogen oxides (NOX), and mercury.  Reductions
in  SO2 and  NOX emissions will also reduce airborne fine particulate  matter (PM2.s), which is

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Annual Plan and Budget Overview
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 SO2, 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 trade program to reduce
SO2 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.
       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.
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%.
       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  in efficient equipment
and  practices.  These programs help remove barriers  in the marketplace, resulting in faster
deployment of technology into the residential, commercial, transportation, and industrial sectors
of the economy.
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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                                                       Annual Plan and Budget Overview


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 in
improving the quality of surface waters and drinking water.

       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 swimming, fishing, and recreation were impossible.
       Today  drinking water systems   By 2005 the percentage of the population served by
monitor  and  treat  water  to  assure   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.
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.
                                                                                    VII

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Annual Plan and Budget Overview
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 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 CAFO 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 in 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
VIM

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                                                       Annual Plan and Budget Overview


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 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
                                              By the end of 2005, EPA will  reassess a
                                              cumulative  88%  of the 9,721  pesticide
                                              tolerances required  to be reassessed over
                                              ten years.
       The FY 2005  request  includes $156.7
million  to meet implementation challenges of the
Food Quality Protection Act (FQPA) of 1996 so
that all Americans will continue to enjoy one of
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, in 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 in conjunction with the EPA Strategic Plan
revision effort.  Both have made significant improvements since the FY 2004 review, with new
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Annual Plan and Budget Overview
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.

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 in the areas  of  biological
agents, water security, and rapid risk assessment.
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                                                       Annual Plan and Budget Overview


Compliance and Environmental Stewardship
                                     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 violations.
       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 enforcement program.  A smart
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    |ncregse   the   regu|gted   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.
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.
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Annual Plan and Budget Overview
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
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 Air 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 (ORD) 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 in 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
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                                                       Annual Plan and Budget Overview


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
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.
                                                                                  XIII

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Annual Plan and Budget Overview
The President's Management Agenda: A Commitment to Reform & 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
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 improved  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.
XIV

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                                                  Annual Plan and Budget Overview
            Environmental Protection Agency's
                Resources by Major Category
                            (Dollars in Billions)

       Infrastructure
       Trust Funds
       Operating Programs
$8.0 -
$7.0 -
$6.0 -
$5.0 -
$4.0 -
$3.0 -
$2.0 -
$1.0 -

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Annual Plan and Budget Overview
               Environmental Protection Agency's
                                  Workforce
  18,500


  18,000


  17,500


  17,000


  16,500 -


  16,000 -


  15,500 -
  15,000
                          18,110
17,508
                   17,739
      17,082
             17,152
                                17,670
17,558
             17,741
      17,478
                                                          17,850
                          17,904
          1995   1996   1997   1998  1999   2000   2001   2002   2003  2004   2005
         FY 1995 through FY 2003 reflect actual FTE usage.

         FYs 2004 & 2005 work years are workforce ceilings based on the President's budget submissions.
         The projected utilization rate for FY 2004-2005 is 17,635 workyears in each year..
  XVI

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                                         Annual Plan and Budget Overview
        Environmental Protection Agency's
               FY 2005 Budget by Goal
                 Total Agency: $7,759 Million
    Goal 4
    16.7%
         Goal 3
         23.1%
                  Goal 5
                  9.6%
GoaH
12.9%
                                                   Goal 2
                                                   37.7%
       Goal 1: Clean Air and Global Climate Change
       Goal 2: Clean and Safe Water
       Goal 3: Land Preservation and Restoration
       Goal 4: Healthy Communities and Ecosystems

       Goal 5: Compliance and Environmental Strewardship
Note: Totals do not add due to rounding.
                                                        XVII

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Goal 1: Clean Air and Global
       Climate Change

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                                          Goal 1: Clean Air and Global Climate Change
       Goal 1:  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
                                             ($ in 000)
\ 	 ^
12.9% of Budget
1 - Healthier Outdoor Air
2 - Healthier Indoor Air
3 - Protect the Ozone Layer
4 - Radiation
5 - Reduce Greenhouse Gas Intensity
6 - Enhance Science and Research
Goal 1 Total
FY 2004
President's
Budget
$579,059
$48,043
$19,069
$34,859
$106,936
$128,017
$915,983
FY2005
President's
Budget
$659,876
$48,955
$21,814
$34,718
$108,389
$130,864
$1,004,616
Difference
$80,817
$912
$2,744
($141)
$1,453
$2,847
$88,632
Workyears
2,738
2,757
19
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
  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/.
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Goal 1:  Clean Air and Global Climate Change
are still developing.  The elderly are  more sensitive to air pollution  because they often  have
heart or lung disease.2

       Pollutants in the air 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 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 (SO2), nitrogen dioxide (NO2), 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 SO2 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
2 Ibid
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)
5 Latest Findings on National Air Quality: 2002 Status and Trends Report


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                                      Goal 1:  Clean Air and Global Climate Change
lakes and streams, changing the nutrient balance  in coastal waters and watersheds,
depleting  the  nutrients in 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
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. SO2 also is a major contributor to  acidic deposition.

Nitrogen  Dioxide.  Exposure to NO2 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  NO2 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 in
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
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Goal 1:  Clean Air and Global Climate Change
       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.

             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 time 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 air 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.
6 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/R1.html.


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                                             Goal 1:  Clean Air and Global Climate Change
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
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 in
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 air 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 in 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,
 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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Goal 1:  Clean Air and Global Climate Change
       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 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 SO2, 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 in the Congress  in February 2003, would create a
       mandatory program  that is designed to  reduce dramatically power plant emissions of
       SO2, 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 SO2  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.
 Senate and House of Representatives, Clear Skies Legislation Act of 2002, S. 2815 (July 29, 2002) and
H.R. 5266 (July 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/


1-6

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                                             Goal 1: Clean Air and Global Climate Change
             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 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 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.

       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 in 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/industry 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  in  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
10 The White House, Office of the Press Secretary, President Announces Clear Skies & Global Climate
Change Initiatives (February 14, 2002), http://www.whitehouse.gov/news/releases/2002/02/20020214-
5.html
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Goal 1:  Clean Air and Global Climate Change
       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 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 in the Clean Air Act.
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                                            Goal 1: Clean Air and Global Climate Change
             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 in 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  in  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 in a better position  to
      determine risk and develop alternative strategies for maximizing risk reduction.

             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 & FY2005 ANNUAL PERFORMANCE GOALS

Healthier Outdoor Air

   •  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 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).

   •  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%.
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Goal 1: Clean Air and Global Climate Change
Healthier Indoor Air

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

Protect the Ozone Layer

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

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 U.S. 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, 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
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                                             Goal 1:  Clean Air and Global Climate Change
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 in 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.

       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.
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Goal 1:  Clean Air and Global Climate Change
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 in 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 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, SO2, and CO2.  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,  SmartWay  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.
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                                            Goal 1:  Clean Air and Global Climate Change
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 in 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)
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.
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Goal 1: Clean Air and Global Climate Change
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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Goal 2: Clean and Safe
       Water

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                                                         Goal 2:  Clean and Safe Water
                   Goal 2:  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
                                               ($ in 000)
^L^/
37.9% of Budget
1 - Protect Human Health
2 - Protect Water Quality
3 - Enhance Science and Research
Goal 2 Total
FY 2004
President's
Budget
$1,192,187
$1,647,043
$120,502
$2,959,732
FY2005
President's
Budget
$1,170,340
$1,645,670
$120,959
$2,936,969
Difference
($21,848)
($1,373)
$458
($22,763)
Workyears
3,054
3,041
(12)
BACKGROUND AND CONTEXT

       Over the 30 years since enactment of the Clean Water and Safe Drinking Water Acts
(CWA and SDWA), government, citizens, and the private sector have worked together to make
dramatic progress in 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.11 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,
  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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Goal 2:  Clean and Safe Water
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 in
communities across the nation. The recreation, tourism, and travel industry is one of the largest
employers in  the  nation,  and  a significant portion  of  recreational spending  comes from
swimming, boating, sport fishing, and hunting.12 Each year, more than 180  million people visit
the shore for recreation.13  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.14  The commercial fishing industry, which also  requires clean water and
healthy wetlands,  contributed  $28.6 billion to the  economy in 2001.15  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 Wllamette 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.16

       Much of the dramatic progress in 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.17   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 in 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.18  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
12 Travel Industry Association of America. Tourism for America, 11th Edition. Washington, DC: Travel
Industry of America.
13 Pew Oceans Commission. 2002. America's Living Oceans Charting a Course for Sea Change.
Arlington, VA: Pew Oceans Commission.
14 U.S. Fish and Wildlife Service. 2002. 2001 National Survey of Fishing, Hunting and Wildlife-Associated
Recreation. Washington, DC: Government Printing Office.
15 National Marine Fisheries Service. 2002. Fisheries of the U.S. 2001. Washington, DC: Government
Printing Office.
16 United States Environmental Protection Agency Office of Water. 1998. Clean Water Action Plan:
Restoring and  Protecting America's Water.  Washington, DC: Government Printing Office.
17 303(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/national_rept.control.
18 303(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/national_rept.control.


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                                                          Goal 2: Clean and Safe Water
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 in the U.S.  is the role of small,
dispersed sources of 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,
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Goal 2:  Clean and Safe Water
and nonprofit organizations in watersheds, we are able to pool  information, 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 in 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
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
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                                                         Goal 2: Clean and Safe Water
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
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 FY2005 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.
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Goal 2:  Clean and Safe Water
   •   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.

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  improved on the "good/fair/poor" scale of the National Coastal
       Condition Report by at  least 0.1 point

   •   In 2005, iln 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

       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 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.
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
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                                                           Goal 2:  Clean and Safe Water
       regulatory failures, thwart our ability to document  progress, 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 in pollutant reductions
       of over 2  billion pounds annually,19 and to support State issuance of storm water permits,
19 United States Environmental Protection Agency Office of Water. (January 2001). Development
Document for the Proposed Revisions to the National Pollutant Discharge Elimination System Regulation


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Goal 2:  Clean and Safe Water
       resulting in long  term annual  reductions  of approximately  100  billion pounds  of
       sediment.20

       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 in 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.21

              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.22
       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 in 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

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/
20 U.S. EPA, Office of Water. "Economic Analysis of the Final Phase II Storm Water Rule," EPA 833-R-99-
002, October 1999.
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://www.epa.gov/waterscience/guide/construction/rule.html
21 Greenhalgh, Suzie and Amanda Sauer. 2003. "Awakening the 'Dead Zone': An Investment for
Agriculture, Water Quality, and Climate Change." World Resources Institute.
22 The Drought Monitor;  National Drought Mitigation Center; Website:
www.drought.unl.edu/dm/about.html


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                                                           Goal 2: Clean and Safe Water
       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.

             The  touchstone  of a long-term strategy to manage and  maintain the Nation's
       infrastructure  is  fiscal  sustainability.  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 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 on 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 in  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 in 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 in 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.
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Goal 2:  Clean and Safe Water
       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 in 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 (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 in  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  in 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
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                                                           Goal 2: Clean and Safe Water
plants  are  operated by small communities, thousands of which have  had past operational
difficulties.23  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
their capacity to provide safe drinking water.24  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 in
coastal areas is directed in 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
23 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
24 U.S. Environmental Protection Agency Safe Drinking Water Information System (SDWIS/FED),
http://www.epa.gov/safewater/data/getdata.html
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Goal 3: Land Preservation
       and Restoration

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                                         Goal 3: Land Preservation and Restoration
         Goal 3:  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
                                             ($ in 000)
v — ^
23.2% of Budget
1 - Preserve Land
2 - Restore Land
3 - Enhance Science and Research
Goal 3 Total
FY 2004 FY2005
President's President's
Budget Budget
$210,990
$1,508,647
$59,837
$1,779,473
$237,150
$1,503,466
$57,556
$1,798,171
Difference
$26,160
($5,181)
($2,281)
$18,697
Workyears
4,745
4,708
(36)
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.
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Goal 3: Land Preservation and Restoration
       The  Comprehensive  Environmental  Response,  Compensation,  and  Liability  Act
(CERCLA,  or Superfund) 25 and the Resource Conservation and  Recovery Act (RCRA) 26
provide 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
(PRPs) in cleanup efforts. Under RCRA, EPA  works in partnership with states and  Tribes to
address risks associated with leaking underground storage tanks and with the generation and
management of hazardous and nonhazardous wastes.

       EPA also uses authorities provided under the Clean Air Act,  27Clean Water Act, 28 and
Oil  Pollution Act  of 1990 29 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 fully  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 fully
       informed.   Finally,  the  Agency will develop environmental outcome performance
       measures  that  report progress 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
25 42 U.S. Code 9601-9675
26 42 U.S. Code 6901-6992k
27 42 U.S. Code 7401-7671 q
28 33 U.S. Code 1251-1387
29  33 U.S. Code 2701-2761
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                                            Goal 3:  Land Preservation and Restoration
       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.

Means and Strategies for Preserving Land

       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. 30
       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 WasteWise, 31 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 importance of conserving  natural resources for cultural uses.
30 U.S. Environmental Protection Agency, Office of Solid Waste. Resource Conservation Challenge Web
Site:  http://www.epa.gov/epaoswer/osw/conserve/index.htm.  Washington, D.C. Last updated August 21,
2003.

31 U.S. Environmental Protection Agency, Office of Solid Waste. WasteWse Program Web Site, About
Waste Wse Page: http://www.epa.gov/wastewise/wrr/cbuild.htm. Washington, D.C. Last updated
September 27, 2002.
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Goal 3: Land Preservation and Restoration
       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 in 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 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.
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                                            Goal 3:  Land Preservation and Restoration
       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, particulate 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 LIST  programs approved  by EPA to operate in lieu of the Federal
       program.  32  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 LIST 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.  33  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  cost  100 percent more  than cleanups  involving  other gasoline
32 42 U.S. Code 9601-6992k

33 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
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Goal 3: Land Preservation and Restoration
       contaminants. 34  The Agency will focus its  efforts on  reducing  LIST  releases  and
       increasing early detection of petroleum products, including MTBE, by further evaluating
       the performance of compliant LIST systems.
Means and Strategies for Restoring Land

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 (MRS), EPA evaluates and responds to thousands of releases annually. The
MRS 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
34 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.
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                                           Goal 3:  Land Preservation and Restoration
       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,  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,  35the Agency
       requires certain facilities (defined in 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
35 33 U.S. Code,6901-6992k
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Goal 3:  Land Preservation and Restoration
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 its 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 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.
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                                           Goal 3:  Land Preservation and Restoration
       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.
Means and Strategies

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 in 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.

       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
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Goal 3: Land Preservation and Restoration
(SAB),  an independent chartered Federal Advisory Committee Act (FACA) committee, meets
annually to conduct an indepth 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 FY2005 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;

   •   assessed over 45,300 potential Superfund 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;
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                                           Goal 3:  Land Preservation and Restoration
   •   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) in 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

   •   resolved potential liability of 24,700 small volume waste contributing parties through
       more than 475 de minimis settlements.

Research

       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 in 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.
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Goal 3: Land Preservation and Restoration
EXTERNAL FACTORS

       EPA's ability to respond as the Federal On-Scene Coordinator for releases of harmful
substances in 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,  in 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.

       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 in 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 LIST  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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Goal 4: Healthy Communities
       and Ecosystems

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                                        Goal 4: Healthy Communities and Ecosystems
      Goal 4:  Healthy Communities and Ecosystems

Strategic Godl: Protect, sustain, or restore the health of people, communities, and
ecosystems using integrated and comprehensive approaches and partnerships.
                                    Resource Summary
                                              ($ in 000)
^ 	 */
16.7% of Budget
1 - Chemical, Organism, and Pesticide
Risks
2 - Communities
3 - Ecosystems
4 - Enhance Science and Research
Goal 4 Total
FY 2004 FY2005
President's President's
Budget Budget

$364,129
$317,573
$160,698
$420,041
$1,262,441

$383,305
$319,958
$200,845
$394,824
$1,298,932
Difference

$19,176
$2,385
$40,146
($25,217)
$36,491
Workyears
3,824
3,850
26
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,
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Goal 4:  Healthy Communities and Ecosystems
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.

      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
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                                            Goal 4:  Healthy Communities and Ecosystems
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
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.36

       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.
36 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://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.
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Goal 4:  Healthy Communities and Ecosystems
       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.

       The Agency will continue to support the National Environmental Justice Advisory Council
(NEJAC) 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.
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                                            Goal 4:  Healthy Communities and Ecosystems
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.

       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  improved 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.
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Goal 4:  Healthy Communities and Ecosystems
       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,  in
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.

       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
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                                            Goal 4: Healthy Communities and Ecosystems
already been reviewed.37 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 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 in  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.38  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 Rule39, 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  in paint and dust through a regulatory framework and by
educating parents and the medical community  about prevention.40  EPA's efforts, combined with
those of  other Federal agencies, has led to a  50 percent drop in 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 in the past.  In addition, recommendations will be
provided  to EPA in 2004 from a panel of national experts on asbestos that will assist the Agency
in 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.
37 Toxic Substances Control Act Section 5:  Manufacturing and Processing Notices, Public Law 94-469, October 11,
1976

38 U.S. EPA, Office of Pollution Prevention and Toxics, High Production Volume Challenge Program, HPV
Commitment Tracking System. Available at http://www.epa.qov/chemrtk/viewsrch.htm.

39 U.S. EPA website, www.epa.gov/opptintr/iur: Title 40 CFR Part 710, Subpart A

40 See www.epa.gov/lead
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Goal 4:  Healthy Communities and Ecosystems
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 in the border area. The programs were initially
conceived in a Federal-to-Federal context. Today, it is clear that in 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 in workgroup activities with similar experience  on the Mexico side.

       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.
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                                            Goal 4: Healthy Communities and Ecosystems
       EPA's efforts in 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 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 training 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
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Goal 4:  Healthy Communities and Ecosystems
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; 6) mercury, and 7)  homeland security.   Following is a summary of the
means and strategies to meet the Agency's long-term objectives in 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  in  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 in 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
in 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, bioinformatics, and quantitative
structure-activity relationships.   These  alternative  approaches, in  conjunction  with  highly
sophisticated computer-based  models and research results, will greatly  reduce the use  of
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                                           Goal 4:  Healthy Communities and Ecosystems
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-disruptor chemicals.  Research in 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.

       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  methylmercury 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 FY2005 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 subsistance lifestyles of the
       Native Americans.

   •   Standardize and validate screening assays.
   •   Reduce from 1995 levels the number of incidents involving mortalities to nontargeted
       terrestial 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.
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Goal 4:  Healthy Communities and Ecosystems
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.
   •   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  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.
   •   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.
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.
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                                            Goal 4: Healthy Communities and Ecosystems
       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, 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
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Goal 4:  Healthy Communities and Ecosystems
       reassessment by August 3, 2006. Additional resources of $4,400,000 are requested in
       this program to complete  food use re registration 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 in
       determining appropriate tolerances for these pesticides under the FQPA 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  Decisions41, 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.
41 Reregistration Decisions include Reregistration Eligibility Decisions [REDs], Tolerance Reregistration
Eligibility Decisions [TREDs] and Interim Reregistration Eligibility Decisions [IREDs]).


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                                            Goal 4:  Healthy Communities and Ecosystems
       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 Disrupters  Screening Program (EDSP) was
       established in 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  chemicals for possible
       adverse effects  to the endocrine  system. FQPA requires  that Avalidated@ 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 website42, 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
42 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/volchall.htm.
Washington, DC. Accessed September 9, 2003.
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Goal 4:  Healthy Communities and Ecosystems
       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.

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 improved 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.
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                                            Goal 4: Healthy Communities and Ecosystems
Research for Human Health and Ecosystems

       In order to improve the scientific basis for identifying, characterizing, assessing, and
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 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.


       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 in 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.
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Goal 4:  Healthy Communities and Ecosystems
       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
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 in 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 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
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                                           Goal 4:  Healthy Communities and Ecosystems
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 in field populations of target pests.

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  in 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 in 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,
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Goal 4:  Healthy Communities and Ecosystems
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.

       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 time 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
gaining  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
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                                           Goal 4: Healthy Communities and Ecosystems
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.
EFFICIENCY MEASURES

       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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Goal 5: Compliance and
       Environmental
       Stewardship

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                                   Goal 5: Compliance and Environmental Stewardship
  Goal 5:  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
                                             ($ in 000)
\ 	 ^
9.7% of Budget
1 - Improve Compliance
2 - Improve Environmental
Performance through Pollution
Prevention and Innovation
3 - Build Tribal Capacity
4 - Enhance Science and Research
Goal 5 Total
FY 2004 FY2005
President's President's
Budget Request
$418,998
$137,969
$78,759
$77,182
$712,908
$431 ,695
$169,802
$78,931
$70,129
$750,557
Difference
$12,697
$31,833
$172
($7,053)
$37,649
Workyears
3,489
3,547
58
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.
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Goal 5:  Compliance and Environmental Stewardship
       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 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 in 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 in 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
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                                       Goal 5:  Compliance and Environmental Stewardship
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.
       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 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.
    •   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 in 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.
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Goal 5:  Compliance and Environmental Stewardship
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
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 in 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.
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                                Goal 5: Compliance and Environmental Stewardship
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 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.
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Goal 5:  Compliance and Environmental Stewardship
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
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
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                                Goal 5:  Compliance and Environmental Stewardship
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 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 in 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,
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Goal 5:  Compliance and Environmental Stewardship
       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.

   •   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.
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                                       Goal 5: Compliance and Environmental Stewardship
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  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 in improved  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.
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Goal 5: Compliance and Environmental Stewardship
STRATEGIC OBJECTIVES AND FY2005 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,43 and
achieving  a  5  percent  increase  in  the  number  of   regulated  entities  making
improvements in environmental management practices.44   (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.
43"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, at http://www.epa.gov/echo/.
^"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 www.epa.gov/compliance/resources/publications/planning/caseconc.pdf.
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                                      Goal 5: Compliance 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.

       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."45
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
  Pollution Prevention Act. U.S. Code Title 42, The Public Health and Welfare, Chapter 133, sec. 13101 b. Policy.
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Goal 5:  Compliance and Environmental Stewardship



   •   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.46
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 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
46
  Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition - 63 Federal Register
49643. September 16, 1998.
5-12

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                                       Goal 5:  Compliance and Environmental Stewardship
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.47 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
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 in 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.qov/sectors/)
47
  U.S. EPA, Office of Pollution Prevention and Toxics, Green Chemistry Challenge. Accessed October 1, 2003.
Available at http://www.epa.qov/qreenchemistrv/index.html.
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Goal 5:  Compliance and Environmental Stewardship
       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, streamlining  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, Aintelligent@ screening  and permit
application  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
5-14

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                                       Goal 5: Compliance and Environmental Stewardship
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.

       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-
                                                                                  5-15

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Goal 5:  Compliance and Environmental Stewardship
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
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.
5-16

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Appendixes

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                                                    Appendix A:  Categorical Grants
        CATEGORICAL GRANTS PROGRAM  (STAG)
                                (Dollars in millions)
                                                            $1,158
                                                                   $1,202
                                                                           $1,252
                                                     $1,074
                                             $1,006
                                $880    $885
  $665    $645   J674
                         $745
  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.
                                                                               A-1

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Appendix A:  Categorical Grants
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
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 air 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  in 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.
A-2

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                                                      Appendix A: Categorical Grants
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
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 (LIST) 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 LIST systems to  prevent
future releases. This investment more than triples the size of Federal assistance to states and
tribes for the LIST program. States and tribes will  use these resources  to ensure that LIST
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.

Brownfields 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.
                                                                                  A-3

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Appendix A:  Categorical Grants
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 inter-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
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.
A-4

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                                                      Appendix A: Categorical Grants
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.  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.

Sfafe 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.
                                                                                  A-5

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Appendix A: Categorical Grants
CATEGORIAL PROGRAM GRANTS (STAG)
by National Program and State Grant
(Dollars in Thousands)
FY2004 FY 2005
President's President's
Grant Budget Budget
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 (DIG)
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

$228,550
$11,050
$8,150
$247,750

$200,400
$10,000
$238,500
$20,000
$19,000
$20,000
$0
$507,900

$105,100
$11,000
$5,000
$121,100

$106,400
$60,000
$11,950
$178,350

$13,100
$13,700
$5,150
$19,900
$51,850

$25,000
$6,000
$2,250
$62,500
$0
$95,750
$1,202,700

$228,550
$11,050
$8,150
$247,750

$222,400
$10,000
$209,100
$20,000
$20,500
$25,000
$1,500
$508,500

$105,100
$11,000
$5,000
$121,100

$106,400
$60,000
$37,950
$204,350

$13,100
$13,700
$5,150
$19,900
$51,850

$25,000
$6,000
$2,250
$62,500
$23,000
$118,750
$1,252,300
Difference
$0
$0
$0
$0
$0

$22,000
$0
($29,400)
$0
$1,500
$5,000
$1,500
$600

$0
$0
$0
$0

$0
$0
$26,000
$26,000

$0
$0
$0
$0
$0

$0
$0
$0
$0
$23,000
$23,000
$49,600
A-6

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                                              Appendix B: Infrastructure Finance
          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 USA
Mexico Border Projects
Alaska Native Villages
Targeted Projects - Puerto Rico
Total
FY 2004
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
                                                                           B-1

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Appendix B: Infrastructure Finance
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 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, characterization, and redevelopment  at sites that
are  potentially  or  lightly 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
      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 activities.  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 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.

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
B-2

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                                               Appendix B: Infrastructure Finance
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 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 in
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 permanent 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 their CWSRF
      program to their DWSRF program.  The transfer provision gives states flexibility
      to  address the  most critical demands in either program  at a given time.  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
                                                                            B-3

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Appendix B: Infrastructure Finance
      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.

Puerto Rico
      The  President's Budget  includes  $4 million for the  design of upgrades to
Metropolitano's Sergio Cuevas treatment  plant in 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.
B-4

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                                                       Appendix C: Trust Funds
                              Trust Funds
                               (Dollars in Millions)


Superfund
Response
Enforcement
Management & Support
Other Federal Agencies
Transfers
Inspector General
Research & Development
Superfund Total
Base Realignment and
Closure
LUST
Trust Funds Total:
FY 2004
President's Budget
$

$1,005
$176
$140
$11

$13
$45
$1,390
$0
$73
$1,463
FTE

1,514
1,121
488
0

94
130
3,347
84
80
3,511
FY 2005
President's Budget
$

$999
$174
$149
$11

$13
$36
$1,381
$0
$73
$1,454
FTE

1,520
1,119
490
0

94
130
3,353
78
80
3,511
Superfund
   In 2005,  the President's Budget requests a total of $1,381  million in discretionary
budget authority and 3,353 workyears for Superfund.  Currently, more than 93 percent
of 1,518 sites on the Superfund final National Priorities List (NPL) are either undergoing
cleanup construction (remedial or removal) or are completed.

   Of the total funding requested, $999 million and 1,520 workyears are for Superfund
cleanups.   The Agency's  Superfund  cleanup program  addresses public health  and
environmental threats from  uncontrolled releases of hazardous substances. Included in
the  FY  2005 budget is a $150 million  increase specifically targeted for  Superfund
cleanups.  This increase in funding will allow construction to begin  at high priority sites
and address the growing backlog of construction project  resource needs.  The Agency
expects to demonstrate significant progress in reducing  risk to human health and the
environment and revitalizing the number of construction completions at sites on the NPL
within two to three years.  In 2005, EPA and  its partners will complete 40 Superfund
                                                                           C-1

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Appendix C: Trust Funds
cleanups at NPL sites to achieve the overall goal of 926 total construction completions
by the end of 2005.

   Of the total  funding requested,  $174  million  and 1,119 workyears are for the
Superfund Enforcement program. One of the Superfund program's primary goals is to
have responsible parties pay for and conduct cleanups at abandoned or uncontrolled
hazardous waste sites.  The program focuses on maximizing all aspects of Potentially
Responsible Party (PRP) participation,  including having PRPs initiate work at 70% of
the new construction starts at non-Federal Facility Superfund sites,  and  emphasizing
fairness in the settlement process. Where PRP negotiations and previous enforcement
actions fail, EPA uses its  appropriation to  clean up sites  and  then  seeks  to recover
these costs from  the PRPs.

   The remaining portion of the Superfund FY 2005 President's  Budget is comprised of
Management and Support,  other Federal agencies, Research and Development and the
Inspector General.  The  President's Budget requests $149 million and 490 workyears
for  management and  support  activities.   These resources  support Agency-wide
resource management and control functions including:  essential infrastructure, contract
administration, financial accounting and  other fiscal operations.

   Included in the Superfund request is $11 million for Federal agency partners. The
Agency  works with several Federal agencies to perform essential services in  areas
where the Agency does not possess the specialized expertise.  Contributors  include the
United States Coast Guard, the  National  Oceanic and  Atmospheric Administration, the
Department of the Interior, the Federal Emergency  Management Agency, and the
Occupational Safety and  Health Administration.

   The  President's Budget also  requests $49  million  and 224  workyears  to be
transferred to  Research and Development for innovative cleanup technology testing and
to the Inspector General for program auditing.

Base Realignment and Closure Act
   The FY 2005  President's Budget requests 78 reimbursable workyears to conduct the
Base Realignment and Closure  Act (BRAG) program.  Since 1993,  EPA has worked
with the Department of Defense (DoD) and the states' environmental programs to make
property environmentally acceptable for transfer, while protecting human health and the
environment at realigning or closing military installations.  Between 1988 and 1995, 497
major military installations representing the Army,  Navy, Air Force,  and Defense
Logistics Agency were slated  for realignment or closure.  Of these, 107 installations
have been designated as  Fast-Track sites.  The Fast-Track program strives to make
parcels available for reuse as quickly as possible, by either transfer of uncontaminated
or remedial parcels, or lease of contaminated parcels where cleanup is  underway or
"early transfer" of contaminated property undergoing cleanup.
C-2

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                                                       Appendix C:  Trust Funds
Leaking Underground Storage Tanks
   The FY 2005 President's Budget  requests $73 million and 80 workyears for the
Leaking Underground Storage Tank (LUST) program. Approximately 85 percent of this
will be used for state cooperative agreements and support for tribal cleanup.  One of the
Agency's highest priorities in the  LUST  program over the next several years is to
address approximately 136,000 cleanups that  have yet to be  completed  (as of
September 2003), and to address  LUST  sites that are difficult to remediate because
they are contaminated by methyl tertiary butyl ether (MTBE) and other oxygenates. In
2005 the Agency's goal is to complete 21,000 cleanups under the supervision of EPA
and its state, local and tribal partners.
                                                                          C-3

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                                                Appendix D:  Budget Tables
           Environmental Protection Agency
  Summary of Agency Resources by Appropriation
                            ($ in 000)
Appropriation
   FY 2004
President's
   Budget
   FY 2005
President's
   Budget
Environmental Programs & Management
Science & Technology
Buildings and Facilities
Oil Spill Response
Inspector General
Hazardous Substance Superfund
   Superfund Program
   Research Transfer
   IG Transfer
State and Tribal Assistance Grants
Leaking Underground Storage Tanks
 $2,219,659
  $731,483
   $42,918
   $16,209
   $36,808
 $1,389,716
 $1,331,805
   $44,697
   $13,214
 $3,121,200
   $72,545
 $2,316,958
  $689,185
   $42,918
   $16,425
   $37,997
 $1,381,416
 $1,332,134
   $36,144
   $13,139
 $3,231,800
   $72,545
less Offsetting Receipts
   -$4,000
  -$30,000
Total Budget Authority
 $7,626,537    $7,759,244
                                                                   D-1

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Appendix D: Budget Tables
              Environmental Protection Agency
           Summary of Agency Resources by Goal
                      (Dollars in Thousands)
Goal
1 -
2-
3-
4-
5-

Clean Air and Global Climate Change
Clean and Safe Water
Land Preservation and Restoration
Healthy Communities and Ecosystems
Compliance and Environmental Stewardship
less Offsetting Receipts
FY 2004
President's
Budget
$915,983
$2,959,732
$1,779,473
$1,262,441
$712,908
($4,000)
FY 2005
President's
Budget
$1,004,616
$2,936,969
$1,798,171
$1,298,932
$750,557
($30,000)
Difference
$88,632
-$22,763
$18,697
$36,491
$37,649
($26,000)



$7,626,537
$7,759,244
$132,707
D-2

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                                            Appendix D: Budget Tables
               Environmental Protection Agency
            Summary of Agency Workforce by Goal
                            (Workyears)
FY 2004 FY 2005
President's President's
Goal Budget Budget Difference
1 -
2-
3-
4-
5-
Clean Air and Global Climate Change
Clean and Safe Water
Land Preservation and Restoration
Healthy Communities and Ecosystems
Compliance and Environmental Stewardship
2,738
3,054
4,745
3,824
3,489
2,757
3,041
4,708
3,850
3,547
19
(12)
(36)
26
58



17,850
17,904
54
Projected utilization for FY's 2004-2005 is 17,635 workyears in each year.
                                                             D-3

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Appendix D: Budget Tables
                Resources by Program / Project
                          (Dollars in Thousands)
Program / Project
Acquisition Management
Administrative Law
Alternative Dispute Resolution
Audits, Evaluations, and Investigations
Beach / Fish Programs
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. 319)
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
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
Children and other Sensitive Populations
Civil Enforcement
Civil Rights / Title VI Compliance
Clean Air Allowance Trading Programs
FY 2004
President's
Budget
$41,846
$4,705
$1,153
$50,021
$3,690
$27,821
$10,000
$60,000
$25,000
$106,400
$5,000
$13,700
$238,500
$19,900
$13,100
$200,400
$6,000
$105,100
$8,150
$20,000
$5,150
$62,500
$11,000
$11,950
$0
$19,000
$20,000
$2,250
$228,550
$0
$11,050
$86,143
$7,080
$110,482
$12,114
$25,806
FY 2005
President's
Budget
$43,660
$4,929
$1,890
$51,136
$3,238
$28,002
$10,000
$60,000
$25,000
$106,400
$5,000
$13,700
$209,100
$19,900
$13,100
$222,400
$6,000
$105,100
$8,150
$25,000
$5,150
$62,500
$11,000
$37,950
$1,500
$20,500
$20,000
$2,250
$228,550
$23,000
$11,050
$86,655
$7,121
$115,166
$12,414
$26,849
D-4

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                              Appendix D:  Budget Tables
Resources by Program / Project
         (Dollars in Thousands)
Program / Project
Climate Protection Program
Commission for Environmental Cooperation
Compliance Assistance and Centers
Compliance Incentives
Compliance Monitoring
Congressional, Intergovernmental, External Relations
Criminal Enforcement
Drinking Water Programs
Endocrine Disrupters
Enforcement Training
Environment and Trade
Environmental Justice
Exchange Network
Facilities Infrastructure and Operations
Federal Stationary Source Regulations
Federal Support for Air Quality Management
Federal Support for Air Toxics Program
Federal Vehicle and Fuels Standards and Certification
Financial Assistance Grants / IAG Management
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: Preparedness, Response, and Recovery
Homeland Security: Protection of EPA Personnel and Infrastructure
Human Health Risk Assessment
Human Resources Management
Indoor Air: Asthma Program
Indoor Air: Environment Tobacco Smoke Program
Indoor Air: Radon Program
Indoor Air: Schools and Workplace Program
FY 2004
President's
Budget
$108,610
$3,938
$28,072
$9,257
$58,155
$47,452
$38,077
$99,086
$9,003
$4,039
$1,703
$5,044
$33,295
$418,841
$23,702
$97,038
$29,058
$60,447
$20,313
$18,258
$20,778
$18,104
$4,432
$955
$477
$4,763
$15,000
$3,820
$32,397
$62,370
$20,488
$36,495
$49,191
$11,097
$3,618
$5,871
$11,176
FY 2005
President's
Budget
$109,420
$3,949
$28,621
$9,371
$62,217
$48,550
$39,256
$100,948
$9,037
$4,058
$1,723
$5,131
$27,762
$439,298
$24,302
$103,332
$27,764
$64,467
$23,262
$16,911
$20,817
$21,195
$4,478
$955
$477
$6,790
$45,000
$4,320
$11,859
$56,399
$20,544
$36,832
$48,553
$11,197
$3,695
$6,066
$11,258
                                               D-5

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Appendix D: Budget Tables
                Resources by Program / Project
                          (Dollars in Thousands)
Program / Project
Information Security
Infrastructure Assistance: Alaska Native Villages
Infrastructure Assistance: Brownfields Projects
Infrastructure Assistance: Clean School 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
Legal Advice: Environmental Program
Legal Advice: Support Program
LUST / UST
LUST Cooperative Agreements
Marine Pollution
National Estuary Program / Coastal Waterways
NEPA Implementation
Not Specified
Oil Spill: Prevention, Preparedness and Response
Pesticides: Field Programs
Pesticides: Registration of New Pesticides
Pesticides: Review/ Reregistration of Existing Pesticides
Pollution Prevention Program
POPs Implementation
Radiation: Protection
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)
FY 2004
President's
Budget
$13,337
$40,000
$120,500
$1,500
$850,000
$850,000
$50,000
$8,000
$6,177
$137,766
$34,723
$12,241
$17,725
$58,399
$12,050
$19,094
$12,315
($4,000)
$12,898
$25,758
$35,982
$64,314
$17,099
$2,224
$18,865
$4,081
$40,364
$67,382
$12,772
$8,756
$3,609
$21,932
$18,469
$15,701
$46,053
$12,985
$4,012
FY 2005
President's
Budget
$4,697
$40,000
$120,500
$65,000
$850,000
$850,000
$50,000
$4,000
$6,854
$156,282
$35,523
$12,522
$17,594
$58,450
$12,296
$19,229
$12,654
($30,000)
$13,065
$27,186
$45,310
$60,471
$22,496
$2,235
$16,982
$4,850
$40,976
$67,422
$14,302
$8,800
$3,626
$21,992
$18,552
$17,639
$46,118
$8,044
$2,997
D-6

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                              Appendix D:  Budget Tables
Resources by Program / Project
         (Dollars in Thousands)


Program / Project
Research: Human Health and Ecosystems
Research: Land Protection and Restoration
Research: Particulate Matter
Research: Pesticides and Toxics
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: Federal Facilities
Superfund: Federal Facilities lAGs
Superfund: Remedial
Superfund: Support to Other Federal Agencies
Surface Water Protection
Toxic Substances: Chemical Risk Management
Toxic Substances: Chemical Risk Review and Reduction
Toxic Substances: Lead Risk Reduction Program
TRI / Right to Know
Tribal - Capacity Building
US Mexico Border
Wetlands
TOTAL
FY 2004
President's
Budget
$190,731
$36,569
$63,621
$36,785
$38,999
$6,941
$4,942
$47,179
$8,949
$6,403
$21,529
$4,409
$1,604
$3,765
$2,215
$12,508
$5,787
$11,000
$199,804
$155,308
$10,130
$32,744
$10,023
$732,043
$10,676
$190,235
$9,243
$45,536
$14,833
$14,691
$10,494
$6,484
$19,300
$7,626,537
FY 2005
President's
Budget
$177,408
$33,059
$63,691
$29,018
$34,061
$6,928
$4,901
$46,810
$13,029
$8,262
$20,690
$4,757
$1,707
$3,839
$2,282
$12,135
$5,840
$13,500
$201,088
$155,537
$10,091
$32,182
$10,044
$725,484
$10,676
$191,797
$9,514
$45,879
$11,083
$15,941
$10,642
$5,785
$19,753
$7,759,244
                                               D-7

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                                                            Appendix E Acronyms
                  Environmental Protection Agency
                            List of Acronyms
AA       Assistant Administrator
ADR     Alternative Dispute Resolution
ARA     Assistant Regional Administrator
ATSDR   Agency for Toxic Substances and Disease Registry
B&F     Buildings and Facilities
CAA     Clean Air Act
CAFO    Concentrated Animal Feeding Operations
CARE    Community Action for a Renewed Environment
CAP     Clean Air Partnership Fund
CBEP    Community-Based Environmental Protection
CCAP    Climate Change Action Plan
CCTI     Climate Change Technology Initiative
CEIS     Center for Environmental Information and Statistics
CFO     Chief Financial Officer
CSI      Common Sense Initiative
CSO     Combined Sewer Overflows
CWA     Clean Water Act
CWAP    Clean Water Action Plan
DBP     Disinfectant By Products
DfE      Design for the Environment
EDP     Environmental Leadership Project
EJ       Environmental Justice
EPCRA   Emergency Preparedness and Community Right-to-Know Act
EPM     Environmental Programs and Management
ERRS    Emergency Rapid Response Services
ESC     Executive Steering Committee
ETI      Environmental Technology Initiative
ETV     Environmental Technology Verification
FAN     Fixed Account Numbers
FCO     Funds Certifying Officer
FASAB   Federal Accounting Standards Advisory Board
FIFRA    Federal Insecticide, Fungicide and Rodenticide Act
FMFIA    Federal Managers' Financial Integrity Act
FQPA    Food Quality Protection Act
GAPG    General Assistance Program Grants
GHG     Greenhouse Gas
GPRA    Government Performance and Results Act
HSWA    Hazardous and  Solid Waste Amendments of 1984
HWIR    Hazardous Waste Identification Media and Process Rules
IAG      I nteragency Agreements
ICR      Information Collection Rule
IFMS     Integrated Financial Management System
IPCC     Intergovernmental Panel on Climate Change
IRM      Information Resource Management
                                                                            E-1

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Appendix E Acronyms
ISTEA     Intermodal Surface Transportation Efficiency Act
ITMRA    Information Technology Management Reform Act of 1995-AKA Clinger/Cohen Act
LUST     Leaking Underground Storage Tanks
MACT     Maximum Achievable Control Technology
MUR      Monthly Utilization Report
NAAQs    National Ambient Air Quality Standards
NAFTA    North American Free Trade Agreement
NAPA     National Academy of Public Administration
NAS      National Academy of Science
NDPD     National Data Processing Division
NEP      National Estuary Program
NEPPS    National Environmental Performance Partnership System
NESHAP  National Emissions Standards for Hazardous Air Pollutants
NOA      New Obligation Authority
NPDES    National Pollutant Discharge Elimination System
NPL      National Priority List
NPM      National Program Manager
NPR      National Performance Review
NPS      Non-Point Source
OAM      Office of Acquisition Management
OA       Office of the Administrator
OAR      Office of Air and Radiation
OARM     Office of Administration and Resources Management
OCFO     Office of the Chief Financial Officer
OCHP     Office of Children's Health Protection
OECA     Office of Enforcement and Compliance Assurance
OEI       Office of Environmental Information
OERR     Office of Emergency and Remedial Response
OFA      Other Federal Agencies
OFPP     Office of Federal Procurement Policy
OGC      Office of the General Counsel
OIA       Office of International Activities
OIG       Office of the Inspector General
OMTR     Open market trading rule
OPAA     Office of Planning, Analysis and Accountability
OPPE     Office of Policy, Planning and Evaluation
OPPTS    Office of Pesticides, Prevention and Toxic Substances
ORD      Office of Research and Development
OSWER   Office of Solid Waste and Emergency Response
OTAG     Ozone Transport Advisory Group
OW       Office of Water
PBTs     Persistent Bioaccumulative Toxics
PC&B     Personnel, Compensation and Benefits
PM       Particulate Matter
PNGV     Partnership for a New Generation of Vehicles
POTWs    Publicly Owned Treatment Works
PPG      Performance Partnership Grants
PRC      Program Results Code
PWSS     Public Water System Supervision
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                                                              Appendix E Acronyms
RC       Responsibility Center
RCRA     Resource Conservation and Recovery Act of 1976
RGI       Regional Geographic Initiative
RMP      Risk Management Plan
RPIO      Responsible Planning Implementation Office
RR       Reprogramming Request
RWTA     Rural Water Technical Assistance
S&T      Science and Technology
SALC     Suballocation (level)
SARA     Superfund Amendments and Reauthorizations Act of 1986
SBO      Senior Budget Officer
SBREFA  Small Business Regulatory Enforcement Fairness Act
SDWA     Safe Drinking Water Act
SDWIS    Safe Drinking Water Information System
SITE      Superfund Innovative Technology Evaluation
SLC      Senior Leadership Council
SRF      State Revolving Fund
SRO      Senior Resource Official
STAG     State and Tribal Assistance Grants
STORS    Sludge-to-Oil-Reactor
SWP      Source Water Protection
SWTR     Surface Water Treatment Rule
TMDL     Total Maximun Daily Load
TRI       Toxic Release Inventory
TSCA     Toxic Substances Control Act
UIC       Underground Injection Control
LIST      Underground Storage Tanks
WCF      Working Capital Fund
WIF       Water Infrastructure Funds
WIPP     Waste Isolation Pilot Project
                                                                               E-3

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