United States       Office Of         EPA205-R-01-001
          Environmental Protection   Chief Financial Officer     April 2001
          Agency         (2732A)
x=/EPA  Fiscal Year 2002
     Justification Of Appropriations
     Estimates For The Committees
           On Appropriations
 Recycled/Recyclable. Printed with Vegetable Based Inks on Recycled Paper (20% Postconsumer)

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Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Introduction and Overview
        EPA's Mission and Goals	 i-1
        Organization of the Annual Performance Plan and Congressional Justification 	,	.... i-3
        Annual Plan and Budget Overview	,	i-8

Resource Tables
        Resources by Appropriation	  RT-1
        Resources by Goal/Appropriation	,	  RT-3
        Resources by Goal/Objective	,	   RT-10

Goal 1: Clean Air	1-1
        Attain NAAQS	1-15
        Reduce Risk  from Air Toxics	,	1-54
        Acid Rain				1-69

Goal 2: Clean and Safe Water	 II-l
        Ensure Safe Drinking Water and Recreational Waters	,	,	  11-12
        Protect Watersheds and Aquatic Communities	  11-41
        Reduce Loadings and Air Deposition  	k. —....  11-69

Goal 3: Safe Food	III-l
        Reduce Risks from Pesticide Residues in Food  	,	III-l 1
        Eliminate Use on Food of Pesticides Not Meeting Standards	HI-21

Goal 4: Preventing Pollution and Reducing Risk in Communities, Homes,
               Workplaces and Ecosystems	IV-1
        Reduce Public and Ecosystem Risk  from Pesticides	,	  IV-14
        Reduce Risks from Lead and Other  Toxic Chemicals  	]V-24
        Manage New Chemical Introduction and Screen Existing Chemicals for Risk	IV-33
        Ensure Healthier Indoor Air  	IV-47
        Facilitate Prevention, Reduction and Recycling of PBTs and Toxic Chemicals	  IV-56
        Assess Conditions in Indian Country	•..-	    IV-76

Goal 5: Better Waste Management, Restoration of Contaminated Waste Sites,
        and Emergency Response	......	.«		  V-l
        Control Risks from Contaminated Sites and Respond to Emergencies	  V-l2
        Regulate Facilities to Prevent Releases	  V-61

Goal 6: Reduction of Global and Cross-Border Environmental Risks	;....	VI-1
        Reduce Transboundary Threats to Human and Ecosystem Health in North America	  VI-9
        Reduce Greenhouse Gas Emissions	VI-24
        Reduce Stratospheric Ozone Depletion	,	VI-54
        Protect Public Health and Ecosystems from  PBTs and other Toxics	 Vl-63
        Increase Domestic and International Use of Cleaner  and More Cost-Effective Technologies	  VI-74

Goal 7: Quality Environmental Information	VII-1
        Increase Availability of Quality Health and Environmental Information ... /	,	VII-9
        Provide Access to Tools for Using Environmental Information	VII-24
        Improve Agency Information Infrastructure and Security	,	 VII-39

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Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 8: Sound Science, Improved Understanding of Environmental Risks,
        and Greater Innovation to Address Environmental Problems		  VIII-1
        Conduct Research for Ecosystem Assessment and Restoration	  VIII-9
        Improve Scientific Basis to Manage Environmental Hazards and Exposures	  VIII-19
        Enhance Capabilities to Respond to Future Environmental Developments	  VIII-28
        Improve Environmental Systems Management	   VIIL-38
        Quantify Environmental Results of Partnerships Approaches	  VIII-47
        Incorporate Innovative Approaches	,	  VIII-50
        Demonstrate Regional Capability to Assist Environmental Decision Making   	  VIII-56
        Conduct Peer Review to Improve Agency Decisions	  VIII-58

Goal 9: A Credible Deterrent to Pollution and Greater Compliance with the Law	IX-1
        Increase Compliance Through Enforcement	 IX-6
        Promote Compliance Through Incentives and Assistance 	,	IX-37

Goal 10: Effective Management			X-l
        Provide Leadership	X-8
        Manage for Results Through Services, Policies, and Operations	X-l2
        Provide Quality Work Environment	.		 X-25
        Provide Audit and Investigative Products and Services	X-33

Special Analysis
        Annual Performance Plan Components	SA-1
        Major Management Issues	 SA-2
        Key Programs  Summary			  SA-14
        Non-Appropriated Funds	,	  SA-27
        EPA User Fee Program ..,	  SA-29
        The Customer Service Program	  SA-32
        Costs and Benefits for Economically Significant Rules in FY 2001 or FY 2002		  SA-36
        Charging Administrative/Management Costs To Environmental Goals	  SA-40
       STAG Categorical Programs Grants: Statutory Authority and Eligible Uses	SA-41
       STAG Appropriation Account: Components	SA-52
       STAG Categorical Program Grants		,	  SA-53

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Introduction/Overview

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Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Introduction and Overview
        EPA's Mission and Goals		  i-1
        Organization of the Annual Performance Plan and Congressional Justification 	,	... i-3
        Annual Plan and Budget Overview	i-8

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                                     EPA's Mission

       The mission of the Environmental Protection Agency (EPA) is to protect human health and
to safeguard the natural environment — air, water, and land - upon which life depends.

                                      EPA's Goals

       EPA has developed a series often strategic, long-term Goals in its Strategic Plan.  These
goals, together with the underlying principles that will be used to achieve them, define the Agency's
planning, budgeting, analysis, and accountability process.

»      Clean Air: The air in every American community will be safe and healthy to breathe. In
       particular, children, the elderly, and people with respiratory ailments will be protected from
       health  risks of breathing polluted air.  Reducing air  pollution will also  protect the
       environment, resulting in many benefits, such as restoring life in damaged ecosystems and
       reducing health risks to those whose subsistence depends directly on those ecosystems.

•      Clean and Safe Water:  All Americans will have drinking water that is clean and safe to
       drink. Effective protection of America's rivers, lakes, wetlands, aquifers, and coastal and
       ocean waters will sustain fish, plants, and wildlife, as well as recreational, subsistence, and
       economic activities. Watersheds and their aquatic ecosystems will be restored and protected
       to improve public health, enhance water quality, reduce flooding, and provide habitat for
       wildlife.

•      Safe Food: The foods Americans eat will be free from unsafe pesticide residues. Particular
       attention will be given to protecting subpopulations that may be more susceptible to adverse
       effects of pesticides or have higher dietary exposures to pesticide residues. These include
       children and people whose diets include large amounts of noncommercial foods.

*      Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces, and
       Ecosystems:  Pollution prevention and risk management strategies aimed at eliminating,
       reducing,  or minimizing emissions and contamination  will result in cleaner and safer
       environments in which all Americans can reside, work, and enjoy life.  EPA will safeguard
       ecosystems and promote the health of natural communities that are integral to the quality of
       life in this nation.

*      Better Waste Management, Restoration of Contaminated Waste Sites, and Emergency
       Response: America's wastes will be stored, treated, and disposed of in ways that prevent
       harm to people and the natural environment. EPA will work to clean up previously polluted
       sites, restore them to uses appropriate for surrounding communities, and respond  to and
       prevent waste-related or industrial accidents.

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Reduction of Global and Cross-Border Environmental Risks: The United States will
lead other nations in successful, multilateral efforts to reduce significant risks to human
health and ecosystems from climate change, stratospheric ozone depletion, and other hazards
of international concern.

Quality Environmental Information:  The public and decision makers at all levels will
have access to information about environmental conditions and human health to inform
decision making and help assess the general environmental health of communities. The
public will also have access to educational services and information services and tools that
provide for the reliable and secure exchange of quality environmental information.

Sound Science, Improved  Understanding of Environmental  Risk, and  Greater
Innovation to Address Environmental Problems: EPA will develop and apply the best
available science for addressing current and future environmental hazards as well as new
approaches toward improving environmental protection.

A Credible Deterrent to Pollution and Greater Compliance with the Law: EPA will
ensure full compliance with laws intended to protect human health and the environment.

Effective Management: EPA will maintain the highest-quality standards for environmental
leadership and for effective internal management and fiscal responsibility by managing for
results.
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      Organization of the Annual Performance Plan and Congressional Justification

The Agency's Commitment to Link Planning and Budgeting

      The Agency's approach to annual planning under the Government Performance and Results
Act (GPRA) is based on a full integration of strategic planning, annual planning, budgeting, and
accountability. The organization of EPA's FY 2002 Annual Plan and Congressional Justification
reflects the Agency's continuing commitment to  link planning  and budgeting in  a coherent,
integrated process. This integrated Annual Plan and Budget promotes fiscal accountability through
a direct connection between resources and outcomes.

      The Annual Plan and Budget presents the Agency's Goals and Objectives, and identifies the
resource levels and activities associated with them.  For each Objective, the Budget sets forth a set
of annual performance goals and performances measures. These goals and measures represent
intermediate, measurable levels of performance needed to achieve the Agency's Obj ectives contained
in the Agency's new five-year Strategic Plan, which was submitted to Congress in September 2000.
The Agency's revised Plan takes into account our performance over the past years and lays out new
and innovative tools and approaches to advance our progress in environmental protection.

Resources and Performance Information in New Strategic Plan Structure

      This Annual Plan and Budget contains four years of resource and performance information,
FY 1999 through FY 2002, reflecting the Agency's current 2000 Strategic Plan structure,  The FY
2002 resources associated with Goals and Objectives are based on the current 2000 Strategic Plan.
Historic resources have been adjusted, for comparison purposes, to reflect the current 2000 Strategic
Plan, and may differ from resources in associated Goals and Objectives in the Agency's initial 1997
Strategic Plan. These resource differences are due to changes of emphasis and definition in the
Goals and Objectives.

Workforce Ceiling

      The FY 2002 Annual Plan and Budget includes 17,500 Full Time Equivalents (FTE), which
is 500 belowthe FY 2001 enacted level, and commensurate withEPA's current on-board level. This
FTE ceiling allows EPA to streamline  and manage the workforce  while addressing America's
environmental priorities,

Annual Plan Components

      All of the components of the Annual Plan are contained within the Budget. To fully explain
the Agency's resource needs, the Budget contains a set of annual performance goals and performance
measures broader  than what will be included in the Annual Plan submission to Congress under
GPRA.  The Agency will  submit a stand-alone Annual Plan to Congress to meet the legislative
concern expressed in GPRA that "annual plans  not be voluminous presentations describing
performance...for every activity.  The annual plan and reports are to inform, not overwhelm the

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reader."  (See the Special Analysis section of this document for the Annual Performance Plan
components.)

Annual Performance Plan and Congressional Justification Organization:

Resource Tables

       The resource tables provide a broad overview of the resources that the Agency is requesting
for FY 2002 by Goal, Objective, and Appropriation. Historical data is provided from FY 1999, to
align with four years of performance goals and measures.  For proper comparison with the FY 2002
request, the historic data has been converted to be consistent with the new 2000 Strategic Plan
structure.  Please note that for FY 2000 the Agency is reporting actual obligations, including
carryover dollars, in the Goal and Objective resource tables.

Goal Chapters include:

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

•      Resource Summary: Provides a broad overview of the resources for FY 2002 by Goal,
       Objective, and Appropriation. (The dollar amounts in these and other tables may not add due
       to independent rounding.)

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

•      Highlights: Provides an overview of major activities and programs that contribute to
       achieving the Goal.

•      Strategic Objectives and Annual Performance Goals:  Includes all the Objectives under
       each Goal, and links those Objectives to FY 2002 Annual Performance Goals.

•      External Factors:  Addresses the  external-Agency  factors,  such  as participation  in
     '  environmental programs by State and local governments and other stakeholders, or economic
       and technological  factors that  may  enhance  or  impede  progress toward achieving
       environmental goals.

Objective Sections Include:

•      Objective Statement: Objectives are a critical part of the planning and budgeting process,
       and they respond to the GPRA requirement to plan achievable Objectives. Each Objective
       supports the attainment of a specific Goal.
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Resource Summary: Reports resources by Appropriation account for the Objective

Key Programs: Reports resources for Key Programs, which are core Agency programs
contributing to the Objective.  Resources listed under an Objective may not represent the
total Key Program resources, as a Key Program may be involved in more than one Obj ective.

FY 2002 Request: These narratives describe specific Agency functions and the operational
processes, as well as the human, capital and technological resources required to meet the
performance goals.

FY 2002 Change from FY 2001 Enacted:  Describes major changes, by appropriation
account, in programmatic funding within the Objective.

Annual Performance Goals: Annual Performance Goals are central to measuring progress
toward achieving Objectives. They are quantifiable standards, values, or rates against which
actual achievement can  be compared. They establish the connection between longer-term
objectives and the day-to-day activities in the Agency's programs and will be used by
managers to determine how well a program or activity is doing in accomplishing its intended
results.  This Annual Plan lists performance information for four years: actual results for FY
1999, and FY 2000, and Annual Performance Goals for FY 2001 and FY 2002.

The FY 2001 Annual Performance Goals included in the FY 2002 Annual Plan and Budget
may have changed from those included in the FY 2001 Annual Plan submitted to Congress
in February 2000.  These changes are due to:

•      Congressional action that has materially affected the FY 2000 President's Budget;
•      comments received by the Agency on the annual performance goals and measures
       contained in the  FY 2001 President's Budget; and
•      the need to show FY 2001  performance estimates as context for new annual
       performance goals and measures established for FY 2002.

Performance Measures: Performance Measures provide the  means for determining the
extent to which annual goals and multi-year objectives are being achieved. As such, they are
essential to program evaluations that help to guide the Agency's  strategic planning. As with
the Annual Performance Goals, this Annual Plan/Budget includes Performance Measure data
for four years.

Verification and Validation of Performance Measures:  This section describes how
Performance Measure data are verified and validated. It includes a description of the source
of performance measure data, as well as procedures for quality assurance.  It may also
include information on the methodology of data collection and  review.
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•      Coordination with Other Agencies: This section describes partnerships with other Federal
       and state agencies which are crucial to the success of EPA's environmental programs.

•      Statutory Authority: This section cites the public law that gives the Agency legal authority
       to carry out the Objective.

Special Analyses

       This final section of the Annual Plan and Budget includes:

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

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

»      Key Programs by Appropriation: Reports totals for Agency Key Programs, across Goals
       and Objectives.

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

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

•      Customer Service Standards: Describes the Agency's plan  to improve its mission of
       protecting public health and the environment by more efficiently and effectively serving the
       public, industry, state and local agencies, and other customers.

•      Costs and Benefits of Economically Significant Rules: Identifies regulatory actions that
       are likely to result in a rule that may have an annual effect on the economy of $100 million
       or more. This analysis is required by executive order and is reported in the Agency's annual
       "Regulatory Plan."

•      Cost Allocation:  Provides information on  the realignment of resources from Agency
       Management goal to the Agency's other strategic goals where there is a readily identifiable
       cost that clearly contributes to the achievement of those goals.

•      State and Tribal Assistance  Grants:   Provides  tables on STAG components and
       categorical grants,  as well as statutory authorities for the STAG appropriation.


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Relationship between the Annual Plan and the Strategic Plan

       The Annual Plan makes no substantive changes (not previously noted) to the Agency's
Strategic Plan which was submitted to Congress in September 2000,

Relationship between Budgeted Resources and Annual Performance Goals and Measures

       Annual Performance Goals are related to the resource levels contained in each Objective.
Annual Performance Goals for FY 2002 in this  Annual Performance Plan are based upon the
resource levels in the Agency's FY 2002 budget request levels. However, resources may contribute
not only to the budget year's Annual Performance Goals but also to the accomplishment of Goals
in future years. For example, a performance goal to complete a number of Superfund site cleanups,
or develop research methods and models, generally requires a period longer than one year. Thus,
FY 2002 activities will contribute to completion of work in FY 2002 or beyond. Likewise, some FY
2002 Annual Performance Goals are achievable only with funding provided in prior years.

       Given this multi-year characteristic of some of the resources requested, it is not always
possible to establish direct linkages between the  budget requested for a particular year and the
achievement of all performance goals for that year.

Use of Non-Federal Parties in Preparing this Annual Plan

       The Annual Plan was prepared in conformance with section 220.6(c) of OMB Circular A-
11, concerning the role of non-Federal parties in preparing the Annual Plan.
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                           Annual Plan and Budget Overview
                  A New Era of Cooperation in Environmental Protection

       The Environmental Protection Agency's FY 2002 Annual Plan and Budget request of $7.313
billion in discretionary budget authority,  and 17,500 Full  Time Equivalents (FTE), reflects a
commitment to work for the American people to protect the air, land, and water, demonstrating that
environmental protection and economic prosperity go hand in hand.

       The Nation has made significant progress in protecting the environment and public health
over the past three decades.  The Administration is committed to providing all Americans a clean,
healthy environment, while developing new and effective methods to  achieve environmental
progress. This budget reflects the Administration's commitment to setting high standards for
environmental protection, focusing on results and performance.

Strengthening Partnerships with State, Local and Tribal Governments

       The budget works for the American people by providing critical environmental and health
protections, while recognizing that state, local and tribal governments often have the best solutions
for their environmental challenges. Included within the Agency's $3.7 billion Operating Program
totals, the Agency's program grants to state and tribal governments are funded at the highest level
ever -$1.1 billion.  These grants help states and tribes administer programs delegated to states and
Tribes under Federal environmental statutes. Our commitment is to provide more flexibility to states
and local communities to craft solutions that meet their unique environmental needs.

       In particular, two new grant programs allow states to craft solutions that meet their unique
needs A new enforcement grant for states, funded at $25 million, provides effective enforcement
of environmental laws at the state level. This enforcement grant program supports state efforts in
inspections, civil actions, investigations, and training activities, while reducing the Agency's direct
role in these areas.  In addition, this budget provides $25 million for grants to help states upgrade
and integrate their environmental data, providing a powerful tool for citizens, state and local
governments, and industry.

Cleaning and Protecting America's Water

       Over the past three decades, our Nation has made significant progress in water pollution
prevention and cleanup.  While we have substantially cleaned up many of our most polluted
waterways, and provided safer drinking water for millions of U.S. residents, significant challenges
remain.  This budget request  addresses the challenge to provide clean and safe water in every
American community.

•      Protection from Prinking Water Contaminants. The 2002 request strengthens work with the
       states and  tribes  to implement new health based standards to control for microbial
       contaminants, disinfectants and their byproducts, and other contaminants.
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Drinking Water State Revolving Fund. The
Drinking  Water  State  Revolving  Fund
(DWSRF)  request  of $823  million will
provide substantial  funding to states and
tribes to upgrade and modernize drinking
water systems.
   91 percent of the population served by
   community water systems is expected
   to receive drinking water meeting all
   health based standards in effect as of
   1994, up from 83 percent in 1994.
Beaches  Grants. This budget includes $2
million for grants to states to develop monitoring and notification programs for coastal
recreation waters. This funding supports the Agency's implementation of the "Beaches
Environmental Assessment and Coastal Health Act of 2000."
Helping  States  Address Run-off and
Restore Polluted Waters. The President's
2002  Budget  provides  significant
resources to states to build on successes
we have achieved  in  protecting the
Nation's waters, by providing states and
tribes with grants to address polluted run-
off,  protect  valuable  wetlands,  and
restore polluted waterways.
hi 2003, water quality will improve on a
watershed basis such that 600 of the
Nation's 2,262 watersheds will have
greater than 80 percent of assessed waters
meeting all water quality standards.
(Water quality is surveyed biennially.)
Sewer Overflow Control Grants.  The President's 2002 budget includes $450 million for
State Sewer Overflow Control grants, a newly authorized program to address pollution from
combined sewer overflows and sanitary sewer overflows, which remains the Nation's most
significant municipal wastewater problem. These funds will be allotted to states according
to the existing formula for allotting wastewater grants,
Clean Water State Revolving Fund.  This
budget request includes $850 million for
states and tribes for the Clean Water State
Revolving Fund (CWSRF). States receive
capitalization grants, which enable them to
provide low interest loans to communities
to  construct   wastewater  treatment
infrastructure and fund other projects to
enhance water quality.  This investment
keeps EPA on track with our commitment
to meet the goal for the CWSRF to provide
$2  billion  average  in annual financial
assistance over the long-term  even after
Federal assistance ends.
  700 CWSRF projects are intended to
  initiate operations, including 400
  projects providing secondary treatment,
  advanced treatment, combined sewer
  overflow correction (treatment), and/or
  storm water treatment.  Cumulatively,
  7,900 CWSRF-funded projects will have
  initiated operations since program
  inception.
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       Protecting   Human   Health   along  the
       U.S/Mexico Border.   This budget includes
       $74.8 million  for  water and  wastewater
       projects along the U. S ./Mexico Border. These
       resources help the Agency address the serious
       environmental and human health problems
       associated with untreated and industrial and
       municipal sewage on the U.S.-Mexico border.
         A cumulative 790 thousand residents
         of the U.S.-Mexico border area will
         be protected from health risks because
         of the construction of adequate water
         and wastewater sanitation systems
         since 1994.
Clean and Healthy Air

       Under  the  Clean Air  Act, EPA
works to make the air clean and healthy to
breathe by setting standards for ambient air
quality, toxic air pollutant emissions, new
pollution sources, and mobile sources. In
FY 2002, EPA will assist states, tribes and
local governments in devising additional
stationary  source  and  mobile  source
strategies to reduce ozone and  particulate
matter.  The Agency also 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.   A  key to
achieving the  Clean Air Goal is  $219.6
million included in this budget  for air
grants  which  go directly to  states  and
tribes.

Addressing Climate Change
       This budget request includes $122.7
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
Certify that 3 new areas of the remaining 55
nonattainment areas have attained the 1-hour
NAAQS for ozone, thus increasing the number
of people living in areas with healthy air quality
by 2.9 million and maintain healthy air for 37
million people currently living in 49 areas
attaining the standard.
Air toxic emissions nationwide from stationary
and mobile sources combined will be reduced by
five percent from 2001 (for a cumulative
reduction of 40 percent from the 1993 annual
level of 4.3 million tons).
    Greenhouse gas emissions will be reduced
    from projected levels by approximately 73
    million metric tons of carbon equivalent per
    year through EPA partnerships with
    businesses, schools, state and local
    governments, and other organizations. This
    reduction level will be an increase of 7
    million metric tons over 2001 reduction
    levels.
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opportunities available to consumers, businesses, and organizations to make sound investments in
efficient equipment and practices. These programs remove barriers in the marketplace, resulting
in faster deployment of technology into the residential, commercial, transportation, and industrial
sectors of the economy.

Integrating Environmental Information

       The President's Budget provides $25 million for new grants to states to develop and
implement the National Environmental Information Exchange Network. These grants will build
on work that is already underway in several states, allowing them to participate in an integrated
multi-media information network that will streamline reporting, improve information quality, and
make the management and accessibility of environmental information more efficient.  This
approach will provide improved information for environmental assessment and decision-making,
help to provide more reliable, quality  information for the public, ease reporting burdens for the
regulated community and standardize business processes.

Cleaning Up Toxic Waste
                                             EPA and its partners intend to complete 65
                                             Superfund cleanups (construction
                                             completions) for an overall total of 897
                                             construction completions by the end of
                                             2002.
Keeping Superfund  Working.   This
budget continues a commitment to clean
up toxic waste sites with$l .3 billion for
Superfund cleanups.  The Agency will
also work to maximize the participation
of responsible parties in site cleanups
while  promoting   fairness  in  the
enforcement process. This budget will
continue the dramatic progress we have made in cleaning up toxic waste sites, while
protecting public health, and returning land to productive use. Through 2000, cleanups
have been completed at 757 sites, and 6,286 removal actions have been taken.

Revitalizing   Local Economies  and
Creating Jobs  Through Brownfields
Cleanup and Redevelopment. The FY
2002 budget request includes over $97
million  for the Brownfields program,
which is an increase of $5 million above
the FY  2001  Enacted Level.    The
additional resources  will  support the
redevelopment  and  revitalization of
Brownfields communities by providing
unding for additional assessment pilots and state voluntary cleanup  programs.   The
Brownfields program will  continue to  promote local  cleanup and redevelopment of
industrial sites, returning abandoned land to productive use and bringing jobs to blighted
areas.
                                             EPA Brownfields funding will result in 250
                                             site assessments (for a cumulative total of
                                             2,750), 2,000 jobs generated (for a
                                             cumulative total of 14,000), and the
                                             leveraging of $300 million in cleanup and
                                             redevelopment funds (for a cumulative total

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   Research will provide data on health effects
   and exposure to particulate matter (PM), and
   provide methods for assessing the exposure
   and toxicity of PM in healthy and potentially
   susceptible subpopulations to strengthen the
   scientific basis for reassessment of the PM
   NAAQS.
Sound Science

      The  FY  2002  President's  Budget
supports EPA's efforts to improve the role of
science in decision-making by using scientific
information and analysis to help direct policy
and  establish  priorities.   The Agency will
achieve  maximum environmental and health
protections by employing the best methods,
models, tools, and approaches.  This budget
request includes $575 million to develop and
apply sound science to address both current
and future  environmental challenges.   The budget request supports 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 others.

Supporting States' Enforcement Efforts

      The President's Budget includes a new $25 million enforcement grant program. This reflects
a shift in emphasis for enforcement from  Federal enforcement to  State  enforcement for those
programs already delegated to the States. This shift creates a new $25 million grant program for
States and tribes that will bring enforcement closer to the entity being regulated.  EPA will offer
media specific and multi-media funding to states and tribes for compliance assurance activities
including compliance assistance and incentives, inspections, and enforcement actions.

Ensuring Safe Food through the Food Quality Protection Act (FQPA)
   By the end of 2002, EPA will reassess a
   cumulative 66% of the 9,721 pesticide
   tolerances required to be reassessed over ten
   years. This includes 70% of the 893
   tolerances having the greatest potential
   impact on dietary risks to children.
       The FY 2002 request includes $148.8
million to help meet me multiple challenges of
the  implementation of  the  Food  Quality
Protection Act (FQPA) of 1996  so that all
Americans will continue  to enjoy .one of the
safest, most abundant, and most affordable
food supplies in the world. FQPA focuses on
the registration of reduced risk pesticides to
provide an alternative to the older versions on
the market, and on developing and delivering
information on alternative pesticides/techniques and best pest control practices to pesticide users.
FQPA implements a "whole  farm"  approach  to pollution management and will help farmers
transition - without disrupting production - to safer substitutes and alternative farming practices.
Expanded support for tolerance reassessments will reduce the risks to public health from older
pesticides. Reassessing existing tolerances ensures food safety, especially for infants and children;
and ensures that all pesticides registered for use meet the most current health standards.  This
1-12

-------
budget request also supports FQPA-related science through scientific assessments of cumulative
risk, including funds for validation of testing components of the Endocrine Disruptor Screening
Program.

Summary

       This President's FY 2002 Budget for EPA provides the resources and vision necessary to
reach our Nation's environmental mission to protect the environment and human health.  This
budget represents this Administration's commitment to work with our environmental partners to
develop innovative environmental programs that ensure stewardship of our land, air, and water for
generations to come.
                                         i-13

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Resource Tables

-------
Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Resource Tables
        Resources by Appropriation	,	RT-1
        Resources by Goal/Appropriation	 RT-3
        Resources by Goal/Objective			  RT-10

-------
                                 Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                     Appropriation Summary
                                           Budget Authority
                                         Full-Time Equivalency
                                         (dollars in thousands)

                                                    FY1999
                                                   ENACTED
              FY 2000      FY 2001      FY 2002
             ACTUAL   ENACTED   REQUEST
Environmental Program & Management
     Budget Authority
     Full-time equivalents (FTE)

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

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

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

Building and Facilities
     Budget Authority

State and Tribal Assistance Grants
     Budget Authority

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

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

Oil Spill Response - Reimburse
     Full-time equivalents (FTE)

Inspector General
     Budget Authority
     Full-time equivalents (FTE)

Inspector General - Reim
     Full-time equivalents (FTE)
$1,846,700.0  $1,864,901.7  $2,083,396.4   $1,972,960,0
    11,469.9      10,970.4      11,222.9      11,001.9
       12.5
  $700,000.0
    $2,553.0
       24.9
      18.1
$661,357.9
   2,576.9
     $13.5
       1.5
$731,886.3
   2,581.9
      $6.0
       1.5
$640,537.8
   2,417.3
      $5.9
   $56,948.0     $62,443.2    $23,878.4    $25,318.4
$3,408,050.0  $3,581,175.8  $3,620,756.8  $3,288,725.4
   $72,500.0     $71,098.4    $71,937.4    $71,937.4
       86.3         69.6         81.9         80,4
   $15,000.0     $17,069.7     $14,967.0    $14,967.0
       103.6         98.8        101.9        100.1
        0.0
       9.2
       0.0
       0.0
   $43,391.0     $38,213.7     $45,493.7    $34,019.0
      377.0        335.1        368.9        270.0
        0.0
       0.2
       0.0
       0.0
                                                 RT-1

-------
                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                    Appropriation Summary

                                          Budget Authority
                                        FuII-Time Equivalency
                                        (dollars in thousands)

                                                   FY1999     FY2000      FY 2001      FY2002
                                                 ENACTED    ACTUAL    ENACTED   REQUEST
Rereg. & Exped. Proc. Rev Fund
     Full-time equivalents (FTE)                            222.4

Hazardous Substance Superfund
     Budget Authority                               $ 1,447,762.9
     Full-time equivalents (FTE)                          3,373.6

Superfund Reimbursables
     Full-time equivalents (FTE)                            143.0

Working Capital Fund - Reimb
     Full-time equivalents (FTE)                              0.0

Total, EPA Appropriations
     Budget Authority                               $7,590,3 51.9
     Full-time equivalents (FTE)                          18,366.2

Offsetting Receipts
     Budget Authority

Technical Adjustment to reflect OPM
Report#113G
     Full-time equivalents (FTE)

ENVIRONMENTAL PROTECTION AGENCY (NET)
     Budget Authority                               $7,590,351.9
     Full-time equivalents (FTE)                          18,366.2
      222.6
220.9
117.1
$1,525,403.0   $1,219,311.6  $1,268,135.2
     3,226.0       3,214.7       3,322.4
      113.1
       71.5
 97.7
101.7
 83.6
 99.8
$7,821,663.4   $7,811,627.6  $7,316,600.2
    17,725.0      18,000.0      17,500.0
                            ($4,000.0)
      (55.0)
$7,821,663.4   $7,811,627.6  $7,312,600.2
    17,670.0      18,000.0      17,500.0
                                               RT-2

-------
                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                  Goal Appropriation Summary

                                          Budget Authority
                                        Full-Time Equivalency
                                         (dollars in thousands)
                                                   FY1999     FY2000     FY2001      FY2002
                                                  ENACTED    ACTUAL    ENACTED   REQUEST
Clean Air
     Budget Authority
     Full-time equivalents (FTE)

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

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

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

     State and Tribal Assistance Grants
           Budget Authority

     Oil Spill Response
           Budget Authority

Clean and Safe Water
     Budget Authority
     Full-time equivalents (FTE)

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

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

     Science & Technology
           Budget Authority
           Full-time equivalents (FTE)
 $535,284.5
     1,751.4
 $156,926.0
     1,130.4
        0.0
$544,094.1    $590,082.0
   1,803.7       1,855.6
$166,488.5    $200,078.4
   1,166.3       1,176.2
       0.4
 0.0
       $564,628.0
          1,810.8
       $185,767.6
          1,146.9
 0.0
 $171,755.7   $174,951.0   $170,419.0    $159,275.8
      62-1.0        637.0        679.4         663.9
 $206,601.8   $202,654.6   $219,584.6    $219,584.6
       $1.0
      $0.0
$0.0
$0.0
$3,426,134.3  $3,625,054.8  $3,675,947.8  $3,213,402.5
     2,627.1      2,391.7      2,715.0      2,694.1
 $415,295.6   $439,431.2   $486,244.9   $412,568.4
     2,244.2       1,901.4      2,243.3      2,221.9
        0.0
   $78,978.9
      382.9
       4.4
 0.0
 $87,353.0    $102,227.1
     485.9         471.7
 0.0
        $95,389.7
            472.2
                                                 RT-3

-------
                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                  Goal Appropriation Summary

                                           Budget Authority
                                        Full-Time Equivalency
                                         (dollars in thousands)
                                                    FY1999      FY2000     FY2001     FY2002
                                                  ENACTED    ACTUAL    ENACTED   REQUEST
     State and Tribal Assistance Grants
          Budget Authority

Safe Food
     Budget Authority
     Full-time equivalents (FTE)

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

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

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

Preventing Pollution and Reducing Risk in
Communities, Homes, Workplaces and Ecosystems

     Budget Authority
     Full-time equivalents (FTE)

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

     Envir. Program & Mgmt - Reim
          Full-time equivalents (FTE)
     Science & Technology
          Budget Authority
          Full-time equivalents (FTE)

     State and Tribal Assistance Grants
          Budget Authority
$2,931,859.8  $3,098,270.6  $3,087,475.8   $2,705,444.4
   $77,562.8    $83,259.7   $109,303.9    $108,245.0
      711.3        778.7        796.9         770.9
   $66,890.9
      449.5
   $10,671.9
       39.4
      222.4
  $138,260.7
     1,029.5
        0.0

   $16,997.2
       108.3
 $71,361.5
     505.4
 $11,898.2
      50.7
    222.6
  $241,900.5    $273,624.3
     1,137.8       1,249.8
$159,183.3
   1,092.7
       2.7

 $20,085.8
     154.4
 $94,993.2
     508.9
 $14,310.7
      67.1
     220.9
       0.0

 $23,574.0
     153.5
$93,723.4
    587.3
$14,521.6
     66.5
    117.1
             $301,113.7    $297,572.3
                1,171-3       1,161.7
$181,110.1    $177,681.5
   1,017.8       1,008.3
      0.0

$23,461.2
    153.4
   $86,642.6     $94,355.2     $96,429.6    $96,429.6
                                                 RT-4

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                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                  Goal Appropriation Summary

                                           Budget Authority
                                        Full-Time Equivalency
                                         (dollars in thousands)
                                                    FY1999      FY2000      FY2001     FY2002
                                                  ENACTED    ACTUAL   ENACTED   REQUEST
Better Waste Management, Restoration of
Contaminated Waste Sites, and Emergency Response
     Budget Authority
     Full-time equivalents (FTE)

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

     Science & Technology
           Budget Authority

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

     State and Tribal Assistance Grants
           Budget Authority

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

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

     Oil Spill Response - Reimburse
           Full-time equivalents (FTE)

     Hazardous Substance Superfund
           Full-time equivalents (FTE)

     Superfund Reimbursables
           Full-time equivalents (FTE)
$1,673,339.5  $1,809,956.1   $1,515,572.0   $1,439,062.7
     4,514.0       4,533.5       4,396.1       4,265.8
 $137,336.9    $150,576.9   $167,014-6   $165,348.0
     1,002.2       1,166.4       1,077.9       1,057.2
   $64,128.5     $59,481.9    $58,362.1     $14,819.5
       24.9
        0.0
 12.3
 6.0
  9.2
 0.0
 5.9
   $62,847.2     $63,753.0    $72,088.2    $72,088.2
   $70,391.7     $70,205.9    $70,322.1     $69,651.5
       73.4         64.3         7.1.4          70.1
   $14,334.8     $16,946.5     $14,950.4    $14,504.5
      103.6         98.8        101.9        100.1
 0.0
     2,944.6       2,859.2      2,827.4      2,854.4
      143.0
113.0
97.7
83.6
                                                 RT-5

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                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                  Goal Appropriation Summary

                                           Budget Authority
                                        Full-Time Equivalency
                                         (dollars in thousands)
                                                    FY1999     FY2000     FY2001      FY2002
                                                  ENACTED    ACTUAL    ENACTED   REQUEST
Reduction of Global and Cross-border Environmental
Risks
     Budget Authority
     Full-time equivalents (FTE)

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

     Envir. Program & Mgmt - Reim
           Full-time equivalents (FTE)
     Science & Technology
           Budget Authority
           Full-time equivalents (FTE)

     State and Tribal Assistance Grants
           Budget Authority

Quality Environmental Information
     Budget Authority
     Full-time equivalents (FTE)

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

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

     State and Tribal Assistance Grants
           Budget Authority

     Hazardous Substance Superfund
           Budget Authority
           Full-time equivalents (FTE)
$228,591.8    $231,0492    $284,410.8   $282,698.9
     526.9        526.9        521.0        506.6
$125,670.7    $135,928.6    $158,712.7   $158,971.4
     423.4        404.6        424.0        419.6
       0.0
      $0.0
 3.6
 0.0
$0.0
0.0
 $52,921.1     $43,510.8     $50,863.1     $48,892.5
     103.5         118.7         97.0         87.0
 $50,000.0     $51,609.8     $74,835.0     $74,835.0
$123,206.7    $156,934.2    $178,253.4   $189,128.1
     729.2        775.0        890.6        854.3
$109247.1    $135,961.3    $152,588.5    $146,386.0
     680.8        706.2        732.6        706.5
 $11,662.7     $16,706.6     $17,735.8      $9,978.2
      36.9          50.7         59.2         49.6
$0.0     $25,000.0
  $2,296.9      $4266.3      $7,929.1      $7,763.9
      11.5          18.1          5.4          6.5
                                                 RT-6

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                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                  Goal Appropriation Summary

                                           Budget Authority
                                        Full-Time Equivalency
                                         (dollars in thousands)
                                                    FY1999     FY2000     FY2001      FY2002
                                                  ENACTED    ACTUAL    ENACTED   REQUEST
     Working Capital Fund - Reimb
           Full-time equivalents (FTE)

Sound Science, Improved Understanding of Env. Risk
and Greater Innovation to Address Env. Problems
     Budget Authority
     Full-time equivalents (FTE)

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

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

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

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

A Credible Deterrent to Pollution and Greater
Compliance with the Law
     Budget Authority
     Full-time equivalents (FTE)

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

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

     Science & Technology
           Budget Authority
           Full-time equivalents (FTE)
       0.0
       0.0
       0.0
0.0
$335,618.2    $295,022.4
   1,205.7       1,036.3
 $55,934.4     $62,424.0
     233.7        238.3
93.4
      $334,326.0
          1,024.1
       $69,325.7
           262.1
$276,550.9    $229,755.8    $262,006.9
     971.0        796.0        762.0
1.0
 0.0
  $3,132.9      $2,842.6      $2,993.4
       1.0           0.7           0.0
1.6
 0.0
91.7
       $307,247.7
            998.4
        $61,441.5
            245.0
                   $245,382.7
                        753.4
 0.0
                       $423.5
                          0.0
$322,088.2    $371,228.0    $397,274.6    $411,215.7
   2,587.8       2,499.8       2,553.8       2,330.3
$228,473.7    $275,692.1    $297,053.2    $287,004.0
   2,429.8       2,320.6       2,371.9       2,154.4
 0.0
  $8,583.9      $9,683.5     $10,852.4     $11,044.5
      78.7          75.9          78.2          76.8
                                                 RT-7

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                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                  Goal Appropriation Summary

                                          Budget Authority
                                       FuII-Time Equivalency
                                        (dollars in thousands)
                                                   FY1999      FY2000     FY2001     FY2002
                                                  ENACTED    ACTUAL    ENACTED   REQUEST
     Science and Tech. - Reim
          Full-time equivalents (FTE)

     State and Tribal Assistance Grants
          Budget Authority

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

     Superfund Reimbursables
          Full-time equivalents (FTE)

Effective Management
     Budget Authority
     Full-time equivalents (FTE)

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

     Envir. Program  & Mgmt -  Reim
          Full-time equivalents (FTE)
     Science & Technology
          Budget Authority

     Building and Facilities

     Leaking Underground Storage Tanks
          Budget Authority

     Oil Spill Response
          Budget Authority

     Inspector General
          Budget Authority
      0,0
      0.0
 $2,108.3
   $664.2
   0.2
  0.0
   0.1
  0.0
$626,625.4
2,575.0
$412,664.0
1,846.4
$431,440.6
2,129.6
$267,854.3
1,468.5
$123.2
$16.6
   0.0
$70,098.6     $70,532.6     $70,343.6    $95,343.6
$14,932.0     $15,319.8     $19,025.4    $17,823.6
     79.3         101.4        103.7         99.1
   0.0
                         $423,375.5   $431,703.8
                            2,075.6      2.107J
                         $276,275.1    $284,068.2
                            1,408.2        1,454.8
      1.5          2.4           1.5          1.5

 $7,749.2      $7,931.3     $21,535.2    $17,772.1
$892.5      $1,615.3      $2,285.9
$462.5
$43,391.0     $38,213.7     $45,493.7    $34,019.0
                                                RT-8

-------
                               Environmental Protection Agency
              FY 2002 Annual Performance Plan and Congressional Justification
                                 Goal Appropriation Summary

                                         Budget Authority
                                       Full-Time Equivalency
                                       (dollars in thousands)
                                                  FY 1999
                                                 ENACTED
              FY2000
             ACTUAL
           FY 2001
          ENACTED
           FY 2002
          REQUEST
          Full-time equivalents (FTE)

     Inspector General - Reim
          Full-time equivalents (FTE)

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

     Working Capital Fund - Reimb
          Full-time equivalents (FTE)

Total, EPA Appropriations
     Budget Authority
     Full-time equivalents (FTE)

Offsetting Receipts
     Budget Authority

Technical Adjustment to reflect OPM
Report #113G
     Full-time equivalents (FTE)

ENVIRONMENTAL PROTECTION AGENCY (NET)
     Budget Authority
     Full-time equivalents (FTE)
      377.0
        0.0
  $103,100.7
      337.2
        0.0
   335.1
      02
$53,982.4
   246.6
     71.5
   368.9
     0.0
$54,561.2
   278.2
     8.3
$7,590,351.9  $7,821,663.4  $7,811,627.6
    18,366.2      17,725.0      18,000.0
   270.0
     0.0
$67,777.7
   362.4
     8-1
                       $7,316,600.2
                          17,500.0
                                        ($4,000.0)
                   (55.0)
$7,590,351.9  $7,821,663.4  $7,811,627.6
    18,366.2      17,670.0      18,000.0
                       $7,312,600.2
                          17,500.0
                                                RT-9

-------
                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                     Goal Objective Summary
                                           Budget Authority
                                        Full-Time Equivalency
                                         (dollars in thousands)

                                                    FY 1999
                                                  ENACTED
              FY 2000     FY 2001      FY 2002
             ACTUAL    ENACTED   REQUEST
Clean Air
     Budget Authority
     Full-time equivalents (FTE)

     Attain NAAQS
          Budget Authority
          Full-time equivalents (FTE)

     Reduce Air Toxics Risk
          Budget Authority
          Full-time equivalents (FTE)

     Reduce Acid Rain.
          Budget Authority
          Full-time equivalents (FTE)

Clean and Safe Water
     Budget Authority
     Full-time equivalents (FTE)

     Safe Drinking Water, Fish and Recreational
     Waters
          Budget Authority
          Full-time equivalents (FTE)

     Protect Watersheds and Aquatic Communities
          Budget Authority
          Full-time equivalents (FTE)

     Reduce Loadings and Air Deposition
          Budget Authority
          Full-time equivalents (FTE)

Safe Food
     Budget Authority
     Full-time equivalents (FTE)
$535,284.5
1,751.4
$427,182.1
1,293.3
$89,966.2
371.5
$18,136.2
86.6
$3,426,134.3
2,627.1
$544,094.1
1,803.7
$430,096.2
1,314.2
$94,748.6
412.0
$19,249.3
77.5
$3,625,054.8
2,391.7
$590,082.0
1,855,6
$456,019.5
1,379.5
$112,272.7
379.5
$21,789.8
96.6
$3,675,947.8
2,715.0
$564,628.0
1,810.8
$436,470.3
: 1,351.7
$109,247.2
365.3
$18,910.5
93.8
$3,213,402.5
2,694.1
$1,089,314.2  $1,228,123.8   $1,223,716.1  $1,096,096.6
      860.0        755.0         887.6        874.4
  $355,463.0   $377,216.8    $457,289.8    $406,121.4
      904.0       1,048.2         964.4         967.7
$1,981,357.1   $2,019,714.2   $1,994,941.9   $1,711,184.5
      863.1         588.5         863.0         852.0
   $77,562.8    $83,259.7    $109,303.9    $108,245.0
      711.3        778.7         796.9         770.9
                                                RT-10

-------
               Environmental Protection Agency

FY 2002 Annual Performance Plan and Congressional Justification

                   Goal Objective Summary

                        Budget Authority
                      Full-Time Equivalency
                      (dollars in thousands)

Reduce Risks from Pesticide Residues in Food
Budget Authority
Full-time equivalents (FTE)
Eliminate Use on Food of Pesticides Not Meeting
Standards
Budget Authority
Full-time equivalents (FTE)
Preventing Pollution and Reducing Risk in
Communities, Homes, Workplaces and Ecosystems
Budget Authority
Full-time equivalents (FTE)
Reduce Public and Ecosystem Risk from
Pesticides
Budget Authority
Full-time equivalents (FTE)
Reduce Risks from Lead and Other Toxic
Chemicals
Budget Authority
Full-time equivalents (FTE)
Manage New Chemical Introduction and Screen
Existing Chemicals for Risk
Budget Authority
Full-time equivalents (FTE)
Ensure Healthier Indoor Air.
Budget Authority
Full-time equivalents (FTE)
FY1999
ENACTED

$34,389.8
296.0


$43,173.0
415.3


$241,900.5
1,137.8


$43,240.2
230.2


$34,262.3
140.7


$41,223.4
328.2

$29,095.7
146.2
FY 2000 FY 2001 FY 2002
ACTUAL ENACTED REQUEST

$38,373.3
322.5


$44,886.4
456.2


$273,624.3
1,249.8


$49,322.3
313.4


$37,839.9
86.6


$55,286.8
382.9

$34,612.0
112.6

$44,577.4
330.0


$64,726.5
466.9


$301,113.7
1,171.3


$51,453.5
233.6


$34,3042
145.6


$64,915.8
375.0

$38,634.2
130-3

$45,199.4
335.0


$63,045.6
435.9


$297,572.3
1,161.7


$54,472,9
240,3


$34,741.7
143,1


$65,233.1
372.5

$37,854.0
128.4
                             RT-n

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                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                     Goal Objective Summary

                                           Budget Authority
                                        Full-Time Equivalency
                                         (dollars in thousands)
                                                    FY1999      FY2000      FY2001      FY2002
                                                  ENACTED     ACTUAL    ENACTED   REQUEST
     Facilitate Prevention, Reduction and Recycling of
     PBTs and Toxic Chemicals
          Budget Authority
          Full-time equivalents (FTE)

     Assess Conditions in Indian Country
          Budget Authority
          Full-time equivalents (FTE)

Better Waste Management, Restoration of
Contaminated Waste Sites, and Emergency Response

     Budget Authority
     Full-time equivalents (FTE)

     Control Risks from Contaminated Sites and
     Respond to Emergencies
          Budget Authority
          Full-time equivalents (FTE)

     Regulate Facilities to Prevent Releases
          Budget Authority
          Full-time equivalents (FTE)

Reduction of Global and Cross-border Environmental
Risks
     Budget Authority
     Full-time equivalents (FTE)

     Reduce Transboundary Threats to Human and
     Ecosystem Health in North America.
          Budget Authority
          Full-time equivalents (FTE)

     Reduce Greenhouse Gas Emissions.
          Budget Authority
          Full-time equivalents (FTE)
$41,923.2
211.8
$52,155.7
80.7
$42,130.7
264.9
$54,432.6
89.4
$47,448.3
193.3
$64,357.7
93.5
$40,661.2
185.2
$64,609.4
92.2
$1,673,339.5
     4,514.0
$1,524,349.8
     3,728.2
  $148,989.7
      785.8
  $228,591.8
      526.9
   $71,336.8
       85.9
  $127,285.5
      322.1
$1,809,956.1  $1,517,539.9  $1,510,758.2
     4,533.5       4,396.1       4,265.8
$1,654,165.4  $1,352,907.6  $1,347,067.2
     3,682.5       3,604.2       3,474.9
  $155,790.7    $164,632.3    $163,691.0
      851.0        791.9        790.9
  $231,049.2    $284,410.8    $282,698.9
      526.9        521.0        506.6
   $72,420.1
       79.7
  $124,382.3
      327.3
 $96,077.3
      83.2
$155,286.2
     316.4
 $95,677.8
      83.4
$153,828.0
     305.4
                                                RT-12

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                               Environmental Protection Agency
              FY 2002 Annual Performance Plan and Congressional Justification
                                    Goal Objective Summary
                                         Budget Authority
                                       Full-Time Equivalency
                                        (dollars in thousands)

                                                  FY1999
                                                 ENACTED
       FY 2000      FY 2001      FY 2002
       ACTUAL    ENACTED   REQUEST
     Reduce Stratospheric Ozone Depletion.
          Budget Authority
          Full-time equivalents (FTE)

     Protect Public Health and Ecosystems from PBTs
     and other Toxics.
          Budget Authority
          Full-time equivalents (FTE)

     Increase Domestic and International Use of
     Cleaner and More Cost-Effective Technologies.

          Budget Authority
          Full-time equivalents (FTE)

Quality Environmental Information
     Budget Authority
     Full-time equivalents (FTE)

     Increase Availability of Quality Health and
     Environmental Information.
          Budget Authority
          Full-time equivalents (FTE)

     Provide Access to Tools for Using Environmental
     Information.
          Budget Authority
          Full-time equivalents (FTE)

     Improve Agency Information Infrastructure and
     Security.
          Budget Authority
          Full-time equivalents (FTE)
$17,002.9
36.5
$3,596.6
28.9
$9,370.0
53.5
$123,206.7
729.2
$99,791.9
606.9
$23,351.0
121.9
$17,581.1
31.6
$4,856.5
32.4
$11,809.2
55.9
$156,934.2
775.0
$86,211.5
535.6
$54,857.8
165.2
$17,249.9
33.3
$4,636.1
32.1
$11,161.3
56.0
$178,253.4
890.6
$95,812.3
516.0
$63,302.4
191.1
$17,115.3
32.8
$4,809.7
32.1
$11,268.1
52.9
$189,128.1
854.3
$117,378.7
492.5
$54,837.6
193.5
$63.8     $15,864.9     $19,138.7    $16,911.8
  0.4          74.2         183.5        168.3
                                               RT-13

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                                Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                     Goal Objective Summary
                                           Budget Authority
                                        Full-Time Equivalency
                                         (dollars in thousands)

                                                    FY1999
                                                  ENACTED
            FY 2000      FY 2001      FY 2002
            ACTUAL    ENACTED    REQUEST
Sound Science, Improved Understanding of Env. Risk
and Greater Innovation to Address Env. Problems

     Budget Authority
     Full-time equivalents (FTE)

     Conduct Research for Ecosystem Assessment and
     Restoration.
          Budget Authority
          Full-time equivalents (FTE)

     Improve Scientific Basis to Manage
     Environmental Hazards and Exposures.
          Budget Authority
          Full-time equivalents (FTE)

     Enhance Capabilities to Respond to Future
     Environmental Developments.
          Budget Authority
          Full-time equivalents (FTE)

     Improve Environmental Systems Management.
          Budget Authority
          Full-time equivalents (FTE)

     Quantify Environmental Results of Partnership
     Approaches.
          Budget Authority
          Full-time equivalents (FTE)

     Incorporate Innovative Approaches.
          Budget Authority
          Full-time equivalents (FTE)

     Demonstrate Regional  Capability to Assist
     Environmental Decision Making.
          Budget Authority
$335,618.2
   1,205.7
$110,540.6
     439.1
 $14,660.6
      15.4
 $27,975.4
     132.5
$295,022.4
   1,036.3
$100,537.0
     383.6
$334,326.0
   1,024.1
$118,158.6
     342.9
 $16,807.5
      46.2
 $19,593.8
     105.2
  $9,604.2
       9.3
 $25,313.6
     134-0
$307,247.7
     998.4
$114,865.9
     347.8
 $49,902.0     $40,335.5     $55,349.0     $55,388.0
     225.5         166.3        176.8        174.3
$54,935.7
192.2
$68,385.2
169.3
$45,565.6
144.9
$63,784.4
162.7
$57,719.7
164.4
$58,562.1
168.7
$55,848.2
155.6
$45,462.3
160.8
  $7,626.8
       4.6
 $21,449.6
     129.7
  $6,732.0      $5,896.9      $6,843.7      $3,594.1
                                                RT-14

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                                 Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification
                                     Goal Objective Summary
                                           Budget Authority
                                         Full-Time Equivalency
                                         (dollars in thousands)

                                                    FY 1999
                                                   ENACTED
FY 2000     FY 2001     FY 2002
ACTUAL   ENACTED   REQUEST
          Full-time equivalents (FTE)                          9.2

     Conduct Peer Review to Improve Agency
     Decisions.
          Budget Authority                              $2,486.7
          Full-time equivalents (FTE)                         22.5

A Credible Deterrent to Pollution and Greater
Compliance with the Law
     Budget Authority                                 $322,088.2
     Full-time equivalents (FTE)                           2,587.8

     Increase Compliance Through Enforcement.
          Budget Authority                            $279,217.7
          Full-time equivalents (FTE)                      2,144.1

     Promote Compliance Through Incentives and
     Assistance.
          Budget Authority                             $42,870.5
          Full-time equivalents (FTE)                        443.7

Effective Management
     Budget Authority                                 $626,625.4
     Full-time equivalents (FTE)                           2,575.0

     Provide Leadership
          Budget Authority                             $30,384.7
          Full-time equivalents (FTE)                        268.8

     Manage for Results Through Services, Policies,
     and  Operations.
          Budget Authority                            $ 197,641.9
          Full-time equivalents (FTE)                      1,868.0

     Provide Quality Work Environment
          Budget Authority                            $358,709.5
          Full-time equivalents (FTE)                         55.4
        4.8
5.5
3.1
   $2,501.7      $2,775.1      $3,012.8
       22.6          22.5          22.5
 $371,228.0    $397,274.6    $411,215.7
    2,499.8       2,553.8       2,330.3
 $321,135.6    $344,745.7    $356,652.5
    2,061.3       2,130.5       1,910.3
  $50,092,4     $52,528.9     $54,563.2
      438,5         423.3         420.0
 $431,440.6    $423,375.5   ' $431,703.8
    2,129.6       2,075.6       2,107.1
  $37,157.7     $40,833.8     $46,998.0
      273.1         277.6         309.3
 $173,028.8    $176,982.3    $189,686.0
     1,506.3        1,420.0        1,423.0
 $181,892.3    $152,537.9   $141,812.2
        8.5           9.1          12.6
                                                 RT-15

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                               Environmental Protection Agency
               FY 2002 Annual Performance Plan and Congressional Justification.
                                    Goal Objective Summary
                                         Budget Authority
                                       Full-Time Equivalency
                                       (dollars in thousands)

                                                  FY 1999
                                                 ENACTED
             FY2000
             ACTUAL
 FY2001
ENACTED
 FY2002
REQUEST
     Provide Audit, Evaluation, and Investigative
     Products and Services
          Budget Authority
          Full-time equivalents (FTE)

Total, EPA Appropriations
     Budget Authority
     Full-time equivalents (FTE)

Offsetting Receipts
     Budget Authority

Technical Adjustment to reflect OPM
Report#113G
     Full-time equivalents (FTE)
  $39,889.3     $39,361.8     $53,021.5     $53,207.6
      382.8         341.7        368.9         362.2
$7,590,351.9   $7,821,663.4  $7,811,627.6   $7,316,600.2
    18,366.2      17,725.0      18,000.0       17,500.0
                  (55.0)
                                        ($4?000.0)
ENVIRONMENTAL PROTRECTION AGENCY (NET)
     Budget Authority
     Full-time equivalents (FTE)
$7,590,351.9   $7,821,663.4  $7,811,627.6   $7,312,600.2
    18,366.2      17,670.0      18,000.0       17,500.0
                                               RT-16

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Goal 1: Clean Air

-------
Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 1: Clean Air	1-1
       Attain NAAQS .	,			,	1-15
       Reduce Risk from Air Toxics	 1-54
       Acid Rain		, 1-69

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                             Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                         Clean Air
Strategic Goal:  The air in every American community will be safe and healthy to breathe. In
particular, children, the elderly, and people with respiratory aliments will be protected from health
risks of breathing polluted air. Reducing air pollution will also protect the environment, resulting
in many benefits, such as restoring life in damaged ecosystems and reducing health risks to those
whose subsistence depends directly on those ecosystems.
                                    Resource Summary
                                   (Dollars in thousands)
                                          FY1999
                                          Enacted
            FY2000
             Actual
           FY 2001
           Enacted
         FY 2002
         Request
Goal 01   Clean Air

Obj. 01   Attain NAAQS

Obj. 02   Reduce Air Toxics Risk

Obj. 03   Reduce Acid Rain.

                  Total Workyears
$535,284.5    $544,094.1     $590,082.0     $564,628.0

$427,182.1    $430,096.2     $456,019.5     $436,470.3

 $89,966.2     $94,748.6     $112,272.7     $109,247.2
 $18,136.2
   1,751.4
$19,249.3     $21,789.8
  1,803.7
1,855.6
           $18,910.5
1,810.8
"For proper comparison with the FY 2002 request, the historic data has been converted to be consistent with the new 2000 Strategic Plan structure. Goal and Objective resources
for FY 1999, FY 2000, and FY 2001 may therefore differ from the resources reported in the FY 2001 Annual Plan and Budget and the FY 2000 Annual Report.

Background and Context

       The average American breathes 3,400 gallons of air each day. Despite concerted efforts and
steady progress toward achieving cleaner, healthier air, air pollution continues to be a widespread
human health and environmental problem in the United States.  Air pollution contributes to illnesses
such as cancer and to respiratory, developmental and reproductive problems.  Children are at greater
risk because they are more active outdoors and their lungs are still developing. The elderly are also
more sensitive to air pollution because they often have heart or lung disease.

       Certain air pollutants (such as some metals and organic chemicals) that are emitted from
industrial sources can be deposited into water bodies and magnified through the food web, adversely
affecting fish-eating animals  and humans.  Currently about 2,500 water  bodies are under fish
consumption advisories resulting from chemicals such as PCBs, chlordane, dioxins and mercury.
                                             1-1

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Air pollution also makes soil and waterways more aeidic, reduces visibility,  and accelerates
corrosion of buildings and monuments.

       EPA responds to air pollution problems that are national and international in scope. Air
pollution crosses local and state lines  and, in some cases, crosses our borders with Canada and
Mexico.  This causes problems not only for the majority of the population that lives in expanding
urban areas but also for less populated areas and national parks.  Federal assistance and leadership
are essential for developing cooperative state, local, Tribal, regional, and international 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 developing and implementing their clean air
plans.
Means and Strategies

       Criteria pollutants. EPA develops standards to protect human health and the environment
that limit concentrations of the most widespread pollutants (known as criteria pollutants), which are
linked to many serious health and environmental problems:

       •      Ground-level.ozone. Impairs normal functioning of the lungs in healthy people, as
              well as in those with respiratory problems.  Relatively low amounts can cause
              coughing, shortness of breath, and pain, especially when taking a deep  breath.
              Ground-level ozone can aggravate lung conditions, such as asthma, and is associated
              with increased medication use, visits to emergency rooms, and hospital admissions.
              Ozone can inflame and damage  the lining  of lungs.   Also  causes  damage to
              vegetation and contributes to visibility problems.

       •      Earticulate matter (PM). Coarse particles can aggravate respiratory conditions such
              as asthma. Exposure to fine particles is associated with several serious health effects,
              including premature death. When exposed to PM, people with existing heart or lung
              diseases - such as asthma, chronic obstructive pulmonary disease, congestive heart
              disease, or ischemic heart disease - are particularly vulnerable and are at increased
              risk of premature death or admission to the hospital or emergency room. Also affects
              the environment through visibility impairment.

       *      Sulfur dioxide (S(X). Long-tern exposure to both sulfur dioxide and fine particles
              can aggravate respiratory illness, alter  the defense  mechanisms  of lungs, and
              aggravate existing cardiovascular 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.  Sulfur dioxide is also a major contributor to acid
              rain.
                                           1-2

-------
       *      Nitrogen dioxide (NO2). Exposure to NO2 causes respiratory symptoms such as
              coughing, wheezing, and shortness of breath in children and adults with respiratory
              disease, such as asthma.  Even short exposures to nitrogen dioxide affect lung
              function. Nitrogen dioxide also contributes to acidic deposition, eutrophication in
              coastal waters and visibility problems.

       •      Carbon monoxide (CO).  People with cardiovascular disease may experience chest
              pain and generally increased cardiovascular symptoms when exposed to carbon
              monoxide, particularly while exercising.  People with marginal or compromised
              cardiovascular and respiratory systems (e.g., individuals with congestive heart failure,
              cerebrovascular disease, anemia, chronic obstructive lung disease) and possibly
              fetuses and young infants may also be at greater risk to carbon monoxide pollution.

       •      Lead.  Accumulates  in the body in blood, bone,  and soft tissue and can affect the
              kidneys, liver, nervous system and other organs.  Excessive exposure to lead may
              cause kidney disease, reproductive disorders, and neurological impairments such as
              seizures, mental retardation, and/or behavioral disorders.  Fetuses and children are
              especially susceptible to low doses of lead, often suffering central nervous system
              damage or slowed growth.

       Hazardous air pollutants.  Hazardous air pollutants (HAPs), commonly referred to as air
toxics or toxic air pollutants, are pollutants that cause, or may cause, adverse health effects or
              1996 National Toxic Air Pollutant Emissions by
                                         Source
                  Major Sources
                  (Large Industrial)
                  24%        /
               Smaller Area and
               Other Souces
               26%
Nonroad Mobile
Sources
20%
                                                                Onroad Mobile
                                                                Sources
                                                                30%
                  General summary of the summed national emissions in the 1996 National Toxics Inventor/-
                  based on source sectors and urban and rural designations.
                  Note: Mobile source emissions do not include diesel participates.
                                            1-3

-------
ecosystem damage. The Clean Air Act Amendments of 1990 list 188 pollutants or chemical groups
as hazardous air pollutants and target sources emitting them for regulation. Examples of air toxics
include: heavy metals such as mercury and chromium, dioxins, and pesticides such as chlordane and
toxaphene. HAPs are emitted from literally thousands of sources including stationary as well as
mobile sources. Adverse effects to human health and the environment due to HAPs can result from
even low level exposure to air toxics from individual facilities, exposures to mixtures of pollutants
found in urban settings, or exposure to pollutants emitted from distant sources that are transported
through the atmosphere over regional, national, or even global airsheds.

       Compared to information for the criteriapollutants, the information about the potential health
effects of HAPs (and their ambient concentrations) is relatively incomplete. Most of the information
on potential health effects of these pollutants is derived from experimental animal data. Of the 188
HAPs listed in the Clean Air Act, almost 60 percent are classified by EPA as known, probable, or
possible carcinogens. One of the often documented ecological concerns associated with toxic air
pollutants is the potential for some to damage aquatic ecosystems.  Deposited air pollutants can be
significant contributors to overall pollutant loadings entering water bodies.

       Acid rain. The  Clean Air Act Amendments of 1990 established a program to  control
emissions from electric power plants that cause acid rain and other environmental and human health
problems. Emissions of SO2 and nitrogen oxides (NOJ react in the atmosphere and fall to earth as
acid ram, 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
emissions are a major precursor of ground-level ozone, which affects human health and damages
crops, forests, and materials. Additionally, NO,j 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 that ultimately may affect human health by contributing to premature mortality,
chronic bronchitis, and other respiratory problems. The fine particles also contribute to reduced
visibility in national parks and elsewhere.

       Trends.  Air quality has continued to improve during the past 10 years. Concentrations of
all six criteria pollutants have decreased.  Nationally, air quality concentration data taken from
thousands of monitoring stations across the country have continued to show improvement since the
1980s for ozone, PM, CO,
NO2, SO2, and lead. Areas               Change in Nonattainment Areas
in the country  where air
pollution    levels
persistently   exceed
national   ambient   air
quality  standards   are
designated    in
"nonattainment."  As this
chart shows, all the years
throughout the 1990s have
shown better  air quality
                 ^               90  91  92  93  94  95  96  97  98   99
I
                                          1-4
                                                      fiscal year

-------
than any of the years in the 1980s based upon nonattainment areas.   This steady trend  of
improvement resulted in spite of weather conditions in the 1990s which were generally more
conducive to higher pollution levels, especially ground-level ozone formation.  Emissions  of
hazardous air pollutants have also been reduced significantly; estimates of nationwide air toxic
emissions have  dropped approximately  23 percent  between 1990  and  1996.   For example,
perchloroethylene monitored in 16 urban sites in California showed a drop of 60 percent from 1989
to 1998. Benzene, emitted from cars, trucks, oil refineries and chemical processes, is another widely
monitored toxic  air pollutant.  Measurements taken from 84 urban monitoring sites around the
country show a 39 percent drop in benzene levels from 1993 to 1998. There have been dramatic
                                                             reductions (10 to 25 percent)
                                                             in  sulfates  deposited  in the
                                                             most sensitive systems located
                                                             in  the  northeastern United
                                                             States   since   the
                                                             implementation of  the  acid
                                                             rain program in 1995.

                                                                    The    dramatic
                                                             improvements  in  emissions
                                                             and  air   quality   occurred
                                                             simultaneously   with
                                                             significant   increases   in
      i/Sitfuf 1939, LiS pwpa/jftuij ttKwasal Jlpewai. rrfft/i" ffrito !rcrt*riin? ;nttta«J Mt*^ircrfi*'.anil^rcs3^tfi)!s%fi*'  Af»r\nnTYli C*  CTTf^AA/tVi   flnH
 fWudmmmiiMJpmoir Anhrwmrnme.Macan^tffam^iivlsiirfaXtitmtitlu-ttariiWt*™'*1-      CLOIlUIIlJt-  grUWLH   dim
                                                             population.       The
improvements are a result of effective implementation of clean air laws and regulations, as well as
improvements in the efficiency of industrial technologies.
       While substantial progress has been made, it is important not to lose sight of the magnitude
of the air pollution problem that still
remains. Despite great progress in air
quality improvement, over 150 million
tons of air pollution were released into
the air in 1999 in the United States, and
approximately 62 million people lived
in  counties  where  monitored data
showed unhealthy air for one or more of
the six principal pollutants.  Even  in
cities with  nonattainment status,  air
quality standards are met most of the
time of hours monitored. However, it is
important to note that  serious health
effects can  occur with even limited
exposure.  Some   national   parks,
including the Great Smoky Mountains
        CO

        PB

        N02

      O3 (1 hr)

      03(8hr)

       PM10

        S02



Any NAAQS (1-hr O



Any NAAQS (8-hr O
11991111999
                      50          100          150
               millions of people living in Counties with
                 monitored levels above the NAAQS
                                           1-5

-------
and the Shenandoah, have high air pollution concentrations resulting from the transport of pollutants
many miles from their original sources and from biogenic VOCs within the parks. In 1999, for the
second consecutive year, average rural 1-hour ozone (smog) levels were greater than the average
levels observed for urban sites.

       Strategy,  To continue to reduce air pollution, the Clean Air Act sets specific targets for the
mitigation of each air pollution problem. The Act also mandates the air quality monitoring that helps
measure progress.  In addition, the Act lays out a specific roadmap for achieving those goals that
EPA and its partners — states, tribes, and local governments — have to do to clean up the air. One
constant across the titles in the Act is that the pollution control strategies and programs it contains
are all designed to get the most cost-effective reductions early on. The early reductions program in
toxics, Phase 1 of the Acid Rain program, Tier I and Tier 2 auto emission standards, more stringent
standards on diesel exhaust from trucks  and buses, the reformulated  gasoline program, and  the
MACT standards program were all designed to achieve early reductions, making our air cleaner and
safer to breathe. The problems that remain are some of the most difficult to solve.

       We have developed strategies to address this difficult increment and overcome the barriers
that have hindered progress towards clean air in the past.  We will.use  flexible approaches, where
possible, instead of hard and fast formulas or specific technological requirements. Efforts will focus
on:

•      Coupling ambitious goals with steady progress - The emphasis will be on achieving near-
       term actions  towards meeting the  standards,  while giving states,  tribes, and local
       governments time to implement more difficult measures.  We recognize that it will be
       difficult for some  areas  of the country to attain the new NAAQSs for ozone and fine
       particles, and we believe it will take more than individual state efforts to achieve the needed
       emission reductions.  We will work with states, tribes, and local governments to identify
       ways to  achieve interim  reductions, principally through  regional strategies, national
       strategies, and the air toxics and acid rain programs by building on multi-pollutant emission
       reductions.

       This approach ensures progress toward the goal and, for many areas, will achieve the goal.
       For those areas where additional measures are required, this work will allow progress toward
       the goal while providing the tune to identify measures that will get that last increment to fully
       achieve the goal. For example, many areas will still be implementing measures to implement
       the 1 -hour ozone standard while they are developing new strategies for achieving the revised
       8-hour standard.

•      Maintaining accountability with flexibility - In 2001, the Agency released final guidance for
       states that want to use economic incentive programs to improve air quality and visibility.
       Economic incentive programs include a variety of measures designed to increase flexibility
       and efficiency, while maintaining accountability and enforceability of traditional air quality
       management  programs.   EPA's guidance encourages cost-effective  and  innovative
       approaches to achieving air pollution goals.  Economic incentive programs are incorporated
       into states' strategies for meeting air quality standards and visibility goals.

                                           1-6

-------
       In addition, recent mobile source rulemakings established programs to reduce vehicle and
       engine emissions and to reduce sulfur levels in fuel.  These programs meet industry needs
       for flexibility, while containing clear deadlines, milestones, and reporting requirement to
       monitor compliance.

•      Fostering technical innovations where they provide clear environmental benefits - Market-
       based approaches provide "niches" for many types of technologies; no one size will fit all.
       Sources of pollution can improvise, innovate,  and otherwise be creative in reducing
       emissions. We will promote such technological innovation and then disseminate it to others
       to show how they can get needed reductions. For example, in FY 2002 EPA plans to work
       with states on developing a process for SIP credits for new technologies and for developing
       early emissions reductions programs that could help minimize the impact of environmental
       regulations on economic growth in urban areas.

•      BuildingLpartnerships - There are numerous forms of partnerships, all of which have been
       used by EPA at one point or another in implementing the Clean Air Act. EPA uses public
       outreach to educate people on air problems and encourages them to work to solve them.
       EPA  involves broad-based groups, such as the multi-state Ozone Transport Assessment
       Group, to study a problem and provide recommendations to EPA on ways to solve it. EPA
       also works with organizations like the National Academy of Sciences (NAS) on both short-
       term and long-term research priorities. EPA also engages in regulatory negotiations to bring
       stakeholders to work on a problem and address a specific regulatory issue.  EPA will
       continue to use these types of partnerships, as appropriate.  For example, EPA is working
       with five regional planning bodies on regional strategies for addressing regional haze. Since
       many of the strategies for addressing haze and PM are the same, this effort will also provide
       for partnering to implement the PM standard.

•      Anticipating upcoming issues and ensuring that research is underway in those  areas. The
       Agency is seeking to better understand the root causes of the environmental and human
       health problems created by air toxics in urban areas, thereby improving the ability to weigh
       alternative  strategies for solving those problems.   Research will  be  devoted to  the
       development of currently unavailable health effects and exposure information to determine
       risk and develop alternative strategies for reducing risks. Based on this research we will be
       able to model and characterize not only the current toxics risks and compare national
       program alternatives,, but also identify regional and local "hot spots," and model alternative
       strategies to assist states  and localities in solving their air and water toxics problems.

       Using these strategies, we will work with areas that have the worst problems to develop
strategies accounting for unique local conditions that may hinder them from reaching attainment.
We also will work with states, tribes, and local governments to ensure that work they are doing on
the PM and ozone standards effectively targets both pollutants, as well as  regional haze, air toxics
and greenhouse gas emissions to maximize the effectiveness of control strategies. On the national
level, we will continue to implement or establish Federal standards to require cleaner motor vehicles,
fuels and non-road equipment mat are cost effective and technically feasible.  We also will target

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source characterization work, especially development and improvement of emissions informationj
that is essential for the states, tribes and local agencies to develop strategies to meet the standards.
We will look closely at urban areas to determine the various sources of toxics that enter the air,
water, and soil and determine the best manner to reduce the total toxics risk in these urban areas.
We will also focus on research that will inform and enhance our regulatory decisions as well as
research that explores emerging areas.

       Research

       To reach the objective of attaining and reviewing the NAAQS for tropospheric ozone,
particulate matter (PM), and other pollutants, research will provide methods, models, data and
assessment  criteria on health risks, focusing  on the exposures,  mechanisms  of injury, and
components which affect human health. In FY 2002, EPA will provide tropospheric ozone precursor
measurements methods, emissions-based air quality models, observation-based modeling methods,
and source emissions information to guide State Implementation Plan (SIP) development. In support
of Agency efforts to attain the NAAQS for PM, research in FY 2002 will continue to provide data
on human exposure to PM and the health effects of that exposure, as well as provide methods for
assessing the exposure and toxicity of PM. Modest research and technical support efforts to support
other NAAQS pollutants will also be carried out.

       Air toxics research investigates the root causes of the air toxics environmental and human
health problems in urban areas.  Efforts will focus on providing new methods to estimate human
exposure and health effects from high priority air toxics, and mobile source air toxics . With this
information the Agency  will be in a better position to determine  risk and develop alternative
strategies  for maximizing risk reductions.
Strategic Objectives and FY 2002 Annual Performance Goals

Objective 01: Attain NAAQS

•      Certify that 3 new areas of the remaining 52 nonattainment areas have attained the 1 -hour
       NAAQS for ozone, thus increasing the number of people living in areas with healthy air
       quality by 2.9 million.

•      Maintain healthy air quality for 1.3 million people living in 15 areas attaining the PM
       standards; increase by 60 thousand the number of people living in areas with healthy air
       quality that have newly attained the standard.

«      Provide data on the health effects and exposure to particulate matter (PM) and provide
       methods for assessing the exposure and toxicity of PM in healthy and potentially susceptible
       subpopulations to strengthen the scientific basis for reassessment of the NAAQS  for PM.
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•      Maintain healthy air quality for 44,3 million people living in 70 areas attaining the CO, SO2,
       NO2, and Lead standards; increase by 350 thousand the number of people living in areas
       with healthy air quality that have newly attained the standard.

Objective 02:  Reduce Air Toxics Risk

•      Air toxics emissions nationwide from stationary and mobile sources combined will be
       reduced by 5% from 2001 (for a cumulative reduction of 40% from the 1993 level of 4.3
       million tons per year.)
Objective 03:  Reduce Acid Rain

•      2 million tons of NOx from coal-fired utility sources will be reduced from levels that would
       have been emitted without implementation of Title IV of the Clean Air Act Amendments.

*      Maintain or increase annual SO2 emission reduction of approximately 5 million tons from
       the 1980 baseline. Keep annual emissions below level authorized by allowance holdings and
       make progress towards achievement of Year 2010 S02 emissions cap for utilities.
Highlights

       Reduce emissions of criteria pollutants

       Ground-level ozone, fine PM and regional haze have many similarities. All three problems
result from their formation under certain atmospheric conditions in the presence of gases, such as
NOX and VOCs, emitted by the same types of sources.  Because of these similarities, there are
opportunities for integrated strategies for reducing pollutant emissions in the most cost-effective
ways.

       In FY 2002, EPA will assist states, tribes and local governments in devising additional
stationary source and mobile source strategies to reduce ozone and particulate matter. Some specific
activities and initiatives in this program for FY 2002 will include:

*      Propose a decision on whether to retain or revise the NAAQS for PM.

*      Implement Tier II (light-duty) vehicle and gasoline standards and 2004/2007 heavy-duty
       highway engine and diesel sulfur requirements.  This includes continued assessment of
       required technology. Continue implementing other mobile source programs, such as the Tier
       1 standards for locomotives and Phase 2 standards for small spark-ignition handheld engines
       (e.g., trimmers, brush cutters, and chainsaws).

•      Continue to help create voluntary diesel retrofit projects to reduce PM and, where possible,
       NOX. Continue to develop projects to reduce diesel idling time at truck stops and along
       highways.
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•      Propose standards  for heavy-duty non-road, land-based diesel  engines  and vehicles,
       potentially including new diesel fuel sulfur requirements. Propose standards for commercial
       marine diesel engines used in ocean-going vessels.  Finalize regulatory program that will
       address emissions from a range of unregulated non-road sources and highway motorcycles.
       The non-road sources include industrial spark-ignition engines (e.g., forklifts and generators),
       recreational gasoline engine (e.g., all  terrain vehicles and off-road  motorcycles), and
       recreational marine gasoline and diesel.

•      Continue and  expand the voluntarily organized, state-run regional program for seasonal
       ozone control. EPA administers the NOx Allowance and Emissions Tracking Systems for
       the NOx Budget Program, as requested by nine states in the Northeast Ozone Transport
       Region (OTR). In FY 2002, this program will be in its fourth compliance year.  The Clean
       Air Markets Division has launched  a  multi-year effort  to  re-engineer the information
       technology support structure for the Allowance and Emissions Tracking Systems; system
       modernization is needed to handle increased emissions reporting and allowance trading
       activities, for improved public access, and timely exchange of data with state partners,

•      Continue to work with tribes: developing programs for Indian Country, making eligibility
       determinations, completing VOC and NOX emission inventories and approving Tribal air
       programs as appropriate.

•      Continue efforts to improve emission models and start development of the "new generation
       model" that will greatly improve EPA's ability to support the development of emissions
       control programs, as well as providing support to the states and tribes in their determination
       of program needs to meet air quality standards

•      Continue outreach efforts to promote public  awareness of the Air Quality index and the
       effects of pollution. Continue to enhance the content and promotion of the Green Vehicle
       Guide Website. These activities will encourage consumers to purchase the cleanest and most
       fuel efficient vehicle that meets their needs.

•      Develop a program of SIP credits that result from voluntary measures to reduce emissions.

       For all NAAQS pollutants, we will continue to redesignate areas to attainment as they meet
the standards, carry out the regular review of the  NAAQS using the most current science, and ensure
the maintenance of NAAQSs in areas that have clean air. For the CO, SO2, and lead NAAQSs, there
are some states that have areas that cannot meet the standards  because of some particular, source-
specific problem. These sources are often high-profile and critical to the local economy. We will
work cross-Agency to develop strategies that help them to comply, while being sensitive to economic
and other issues.

       Target air toxics in urban areas
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       In FY 2002, EPA 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. Some specific activities and initiatives in this program for FY 2002 include:

•      Implement the final mobile source air toxics rale, issued in December 2000, by gathering
       emissions data, conducting exposure analyses, and evaluating the need for additional controls
       in FY 2002.

•      Incorporate toxics emissions data into the mobile source models.

•      Make further progress in linking release and exposure information from the various media
       programs to determine multi-media toxics exposure and use this information to develop
       cross-media strategies to more effectively reduce urban exposures to toxic emissions.

•      Develop the final Federal Plan for small municipal waste combustors.

•      Promulgate a Generic MACT rale that covers carbon black production, cyanide chemical
       manufacturing, ethylene processes, and spandex production.

•      Promulgate remaining 10-year MACT standards, including standards covering plywood and
       composites wood products with facilities in 41 states,  reciprocating internal combustion
       engines with over 30,000 facilities, over 10,000 municipal landfills,, and miscellaneous
       organic hazardous air pollutants from 23 different source categories.

       Continue market-based acid rain program

       In FY 2002, Phase II of the Acid Rain Program will complete its second compliance year and
commence the third year of operation. The Program requires annual reductions in SO2 emissions
from more than 2,500 electric utility units (gas-fired, oil-fired, and coal-fired) and reductions in year-
round NOX emissions from  approximately  750 coal-fired units.  The market-based approaches
pioneered by EPA in the Acid Rain Program are being used to solve other air quality problems (e.g.,
ground-level ozone).

       Research

       To reach the objective of attaining and reviewing the NAAQS for tropospheric ozone,
particulate matter (PM), and other pollutants, research will provide methods, models, data and
assessment criteria on health  risks, focusing  on the  exposures, mechanisms of injury, and
components which affect human health. In F Y 2002, EPA will provide tropospheric ozone precursor
measurements methods, emissions-based air quality models, observation-based modeling methods,
and source emissions information to guide State Implementation Plan (SIP) development. In support
of Agency efforts to attain the NAAQS  for PM, research in FY 2002 will continue to provide data
on human exposure to PM and the health effects of that exposure, as well as  provide methods for
assessing the exposure and toxicity of PM. Modest research and technical support efforts to support
other NAAQS pollutants will also be carried out.

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       Air toxics research investigates the root causes of the air toxics environmental and human
health problems in urban areas. Efforts will focus on providing new methods to estimate human
exposure and health effects from high priority air toxics, and mobile source air toxics. With this
information  the Agency will be in a better position to determine risk and develop alternative
strategies for maximizing risk reductions.
External Factors

       Stakeholder participation. To achieve our collective goal of healthy, clean air, EPA relies
on the proactive cooperation of Federal, state, Tribal, and local government agencies; industry; non-
profit organizations; and individuals.   Our success is far from guaranteed even with the full
participation of all our stakeholders. EPA has significant work to accomplish just to reach its annual
targets that support 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. And, as we
begin the 21 st century, EPA will be working with our various stakeholders to encourage new ways
to meet the challenges of "cross regional" issues as well as to integrate our programs to holistically
address airborne pollutants.

        Environmental factors.   In  developing clean air strategies, states, tribes, and  local
governments consider 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.

       Litigation.  In July 1997, EPA published revised, more protective NAAQS for ozone and
PM. The standards are currently under litigation. In February, 2001, the U.S. Supreme Court issued
an opinion largely upholding EPA's position on several key issues related to these standards. The
Supreme Court sent the case back to the U.S. Court of Appeals for the District of Columbia Circuit
to address unresolved issues that challengers had raised before the D.C. Circuit. The D.C. Circuit
had not addressed these issues before because it had remanded the standards to EPA based primarily
on its finding that the Clean Air Act, as EPA had interpreted it, was unconstitutional — a finding the
Supreme Court has now reversed.

       EPA is currently evaluating the Supreme Court opinion, the opinions of the D.C. Circuit, and
several legislative provisions to determine how to proceed. We continue to believe that the standards
are necessary to protect human health, and nothing in the decisions undercuts that belief.  We are
evaluating our programs to determine how best to secure necessary human health protections while
still respecting the courts' decisions. This litigation does not affect standards that were in place prior
to July 1997.
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Coordination with Other Agencies

       Clean air is a national goal that requires the cooperation and efforts of many agencies,
organizations, industries, and academic entities.  Beyond EPA, for example, each state has a
department of natural resources, environment, or health that deals with air pollution issues. EPA
also coordinates with several other Federal agencies in achieving goals related to ozone and PM.
For example, EPA is working closely with the Department of Agriculture in developing its
agricultural burning policy.   EPA, the Department of Transportation, and the Army Corp of
Engineers work with state and local agencies to help them manage growth and urban sprawl. EPA
worked with the Department of the Interior, National Park Service, hi developing its regional haze
program and deploying the Interagency Monitoring of Protected Visual Environments (IMPROVE)
visibility monitoring network.

       EPA also coordinates with other Federal agencies and international organizations in carrying
out research.  For example, EPA's tropospheric ozone research program is coordinated with the
research efforts of others. A significant portion of the tropospheric ozone research  is coordinated
through the efforts of the North American Research Strategy for Tropospheric Ozone (NARSTO).
The remainder of the EPA tropospheric ozone research program focuses on needs associated with
the review of the tropospheric ozone NAAQS, which is also not being met by others.

       The science and policy communities have agreed that solving the PM issue will require
substantial, coordinated research efforts. EPA is taking  steps to achieve public/private coordination
and cooperation by (1) initiating health and exposure research coordination among Federal agencies
and with public/private research organizations; (2) completing an EPA Research Strategy for PM; and
(3) participating as a sponsoring member of NARSTO as it realigns its mission and research agenda
to include PM atmospheric sciences research. An inventory of PM research in the public and private
sectors has been developed.

       The 1998 Appropriations Act identified an important role for the National Academy of
Sciences (NAS) in developing and monitoring implementation of a comprehensive, prioritized, near-
and long-term PM research plan, working in close consultation with representatives from many public
and private sector organizations. The PM research plan is intended to be the principal guideline for
the Agency's PM research program for the next several years. The plan also affects other agencies,
with Congress expecting the EPA and other Federal agencies to review their ongoing PM research
activities and, where appropriate, re-focus activities so as to be consistent with the NAS plan.

       Opportunities exist to complement EPA capabilities through programs targeted toward the
academic community, such as hi epidemiology research to evaluate the consequences of long-term
exposure to ambient PM. The Department of Health and Human Services supported much of the
current epidemiological research on links between long-term exposure to  ambient PM and life
shortening and other long-term health effects, thus the capacity to conduct large-scale epidemiological
research on PM is generally found outside EPA. EPA is entering into an Interagency Agreement with
the National Institute of Allergy and Infectious Diseases to study, for the next several years, the role
of PM and co-pollutants on asthma in children.

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       In a national air toxics strategy, EPA will address whether any control measures are needed
to address the urban toxics risk beyond other actions required under the Clean Air Act Amendments.
EPA's toxic research supports the Agency's regulatory efforts, which aid state and local governments
in lowering major source and mobile source emissions.
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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                        Clean Air

Objective #1: Attain NAAQS

       Reduce the risk to human health and the environment by protecting and improving air quality
so that air throughout the country meets national clean air standards by FY 2005 for carbon monoxide,
sulfur dioxide, nitrogen dioxide, and lead; by FY 2012 for ozone; and by FY 2018 for particulate
matter (PM).  To accomplish this in Indian country, the tribes and EPA will, by FY 2005, have
developed the infrastructure and skills to assess, understand, and control air quality and protect Native
Americans and others from unacceptable risks to their health, environment, and cultural  uses of
natural resources.

                                   Resource Summary
                                   (Dollars in thousands)

Attain NAAQS
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY1999
Enacted
$427,182.1
$100,054.5
$146,376.5
$180,750.1
1,293.3
FY2000
Actual
$430,096.2
$113,443.9
$147,692.2
$168,960.1
1,314.2
FY2001
Enacted
$456,019.5
$130,314.6
$140,057.3
$185,647.6
1,379.5
FY 2002
Request
$436,470.3
$117,015.4
$132,473.4
$186,981.5
1,351.7
                                      Key Programs
                                   (Dollars in thousands)

                                             FY 1999
                                             Enacted
Air, State, Local and Tribal Assistance Grants: Other
Air Grants

Tropospheric Ozone Research

Particulate Matter Research
           FY2000
           Enacted
FY2001
Enacted
FY2002
Request
$180,750.1   $176,636.1   $185,647.6  $186,981.5


 $18,100.4     $6,273.7     $6,551.0    $6,786.0

 $55,842.9    $62,300.5    $68,765,0   $65,743.3
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                                            FY1999     FY2000     FY2001    FY2002
                                            Enacted     Enacted     Enacted    Request
EMPACT
Project XL
Common Sense Initiative
Ozone
Participate Matter
Regional Haze
Lead
Sulfur Dioxide
Nitrogen Oxides
Carbon Monoxide
Rent, Utilities and Security
Administrative Services
Regional Management
$2,578.7
$0.0
$0.0
$69,292.5
$65,569.8
$12,254.9
$326.3
$9,993.1
$956.9
$3,383.7
$0.0
$304.3
$0.0
$2,969.1
$390.5
$135.6
$58,679.8
$54,118.7
$1,851.5
$357.7
$9,863.7
$2,407.1
$4,067.5
$21,005.2
$3,220.3
$1,123.1
$1,797.9
$0.0
$0.0
$67,981.6
$55,617.3
$2,305.9
$329,5
$12,158.1
$1,379.4
$4,062.3
$20,363.1
$3,643.9
$1,597.9
$0.0
$0.0
$0.0
$69,615.1
$54,693.0
$2,352.1
$339.9
$12,495.2
$1,323.1
$4,128.8
$21,645.1
$3,505.8
$1,388.0
FY 2002 Request

       Under the Clean Air Act (C AA), EPA must set and periodically review National Ambient Air
Quality Standards (NAAQSs) for pollutants that are widespread, endanger human health and the
environment, and originate from numerous and diverse sources. These pollutants include ozone,
particulate matter (PM), carbon monoxide (CO), sulfur dioxide (SO2), nitrogen dioxide (NO2), and
lead  (Pb).  Each pollutant and the programs that reduce it are described separately below.  This
objective also includes cross-pollutant preconstruction and operating permit programs.  For each
pollutant, EPA sets both health-based or "primary" standards to protect human health, and welfare-
based "secondary" standards to protect the environment (crops, vegetation, wildlife, buildings and
national monuments, etc.). States and tribes then must develop and carry out strategies and measures
to attain the NAAQS. These strategies and measures are included in state implementation plans
(SIPs) and Tribal implementation plans (TIPs).  The Clean Air Act also requires states to develop
programs to protect and improve visibility in national parks and wilderness areas. EPA works in
partnership with Federally recognized tribes to carry out Federal trust responsibilities and implement
those provisions of the Act that most effectively address air quality management concerns on Tribal
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lands.  In addition, EPA establishes, implements, and enforces national control programs on such
sources as motor vehicles and fuels.

       In  July 1997, EPA published revised, more protective NAAQS for ozone and PM. The
standards are currently under litigation. In February 2001, the U.S. Supreme Court issued an opinion
largely upholding EPA's position on several key issues related to these standards.  The Supreme
Court sent the case back to the U.S. Court of Appeals for the District of Columbia Circuit to address
unresolved issues that challengers had raised before the D.C. Circuit.  The D.C. Circuit had not
addressed these issues before because it had remanded the standards to EPA based primarily on its
finding that the Clean Air Act, as EPA had interpreted it, was unconstitutional — a finding the
Supreme Court has now reversed.

       EPA is currently evaluating the Supreme Court opinion, the opinions of the D.C. Circuit, and
several legislative provisions to determine how to proceed. We continue to believe that the standards
are necessary to protect human health, and nothing in the decisions undercuts that belief. We are
evaluating our programs to determine how best to secure necessary human health protections while
still respecting the courts' decisions. This litigation does not affect standards that were in place prior
to July 1997.

       The D.C. Circuit Court's 1999 decision did not affect the pre-existing NAAQSs, which have
not yet been met in a number of areas.  Since the litigation, the Agency's efforts have been devoted
to maximizing the human health protection available under the 1-hour ozone standard and the pre-
1997 PM]0 standard.  To protect against backsliding during the litigation, EPA has reinstated the 1-
hour ozone standard in those areas where it was revoked when the 8-hour standard was established.

       In FY 2002, EPA will continue to provide research, technical tools, guidance, and data: (1)
to support EPA's ongoing review of the scientific criteria and NAAQS for PM; and (2) to support
state, Tribal, and local analyses of their ozone and  PM problems and the need for additional air
pollution controls.  The budget request is geared toward enhancing scientific knowledge and filling
critical information gaps regarding particulate matter before  states, tribes, and local governments
identify areas not meeting the health-based NAAQS and begin to develop programs to reduce health
risks. The EPA sponsored research on PM included  in this proposal follows the recommendations
from the National Academy of Sciences (NAS).

       Urban  and regional-scale numerical grid models (i.e., UAM-IV, UAM-V, CAMx,  etc)
continue to be used extensively for analysis of ozone issues and preparation of State Implementation
Plans (SIPs) during FY 2001 and are expected to continue into FY 2002 and beyond. In addition, the
use of other modeling systems (i.e., REMSAD and Models-3) will intensify in support of Regional
Planning Organizations (RPOs) for addressing regional haze and for PM2.5. The applicability of such
models will also benefit such programs as the Great Lakes Initiative, U.S./Mexico Border, U.S./
Canada and the air toxics program. EPA, states and  RPOs will work collaboratively in developing
the capability to continue using these models, evaluating their accuracy and applicability to complex
air quality issues, testing and analyzing emission control alternatives, as well as sharing information
on model input data and estimates of ambient concentrations.  Models-3 is expected to be the focus
of significant efforts for evaluation, testing and application to multi-pollutant programs. EPA will

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focus extensively on public outreach and access to provide high quality information for general and
technical audiences to facilitate public understanding, so that individuals can make choices about
activities that might increase personal risk on days when air pollution levels are high.  Improved
information  quality  and access will  enable citizens and users to obtain "real-time" air quality
information and enable EPA to better  track environmental indicators and assess progress.
       Unlike most other pollutants, ozone is not emitted directly into the air by specific sources, but
is created by sunlight acting on nitrogen oxides (NOJ and volatile organic compounds (VOCs).
Some common sources that emit one or more of these are power plants, chemical manufacturing
facilities, petroleum refineries, printing/coating operations, and a vast array  of car  and truck
emissions.

       Ozone can impair normal functioning of the lungs in healthy people, as well as in those with
respiratory problems. Relatively low amounts of ozone can cause coughing, shortness of breath, and
pain, especially when taking a deep breath. Ozone also can worsen chronic lung diseases, such as
asthma, and is associated with increased medication use, visits to emergency rooms, and hospital
admissions.  Ozone can inflame and damage the lining of the lung. Within a few days, the damaged
cells are shed and replaced-much like the skin peels after a sunburn. Animal studies suggest mat if
this type of inflammation happens repeatedly over a long time period (e.g., months, years, a lifetime),
lung tissue may become permanently scarred, causing reduced lung elasticity, permanent loss of lung
function, and a lower quality of life.  Adverse ecosystem effects are known to occur for various
species of vegetation and are likely to extend to entire ecosystems.  Ozone damage to plants is
extensive, with major impacts on commercial crops of wheat, corn, soybeans, cotton and commercial
forestry.

       More people are exposed to  unhealthful levels of ozone than to any other air pollutant.
Meeting the new 8-hour ozone standard would protect 13 million more children from exposure to
unhealthful levels of smog than the previous standard.

       Emissions of ozone precursors can be carried hundreds of miles from their origins and result
in high ozone concentrations over very large areas of the country. This "transport" often affects a
given state's ability to attain theNAAQS through traditional SIP programs. To address this persistent
and widespread problem, EPA will continue to work with affected states, local governments, tribes
and other stakeholders, developing control strategies for NOx and other precursors using, thus
overlaying a regional, background-reducing approach onto each state-by-state approach effort.

       EPA will administer the national  program to implement the  1-hour NAAQS for ozone,
providing oversight and coordinating among Regions and with states to provide national consistency
and developing policy and guidance to resolve major issues. EPA and states will continue outreach
efforts to promote public awareness of the Air Quality Index and the effects of ozone on health.
Working closely with states and industry, EPA will develop a program of SIP credits that result from
voluntary measures to reduce emissions.  States will continue to implement the 1-hour ozone
standards.  For nonattainment areas  classified as "severe", states must develop and  submit the

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necessary local control measure portions of the required 1-hour ozone attainment demonstrations,
develop mid-course review analyses to assure plans are on track for attainment and adopt  adequate
motor vehicle emissions budgets to assure that transportation projects do not cause air quality
problems.

       EPA issued final guidance in January 2001 on an economic incentives program to encourage
states to reduce emissions of air pollutants in the most efficient manner. EPA will continue to provide
guidance on market-based approaches to emissions control and to review and approve emissions
trading protocols for nationally significant source categories to facilitate these trading programs. To
stimulate the development of creative new pollution control initiatives, EPA will work with states to
develop a process for SIP credits for new technologies and for developing early emissions reductions
programs that could help minimize the impact of environmental regulations on economic growth in
urban areas.

       In FY 2002, EPA will continue to study, review, and revise the policy used for responding to
petitions from industry for exemption of a compound from controls as a VOC.   EPA will also
evaluate the need to revise the general  conformity rules and provide guidance on SIP program
requirements. The Agency will continue to work with tribes to develop programs for Indian Country,
making eligibility determinations, completing VOC and NOx emission inventories, and approving
Tribal air programs as appropriate.

       To better assess the causes of the ozone problem, EPA will continue to collect ambient air
measurements for a target list of VOCs (precursors to both ozone and PM),  as well as for nitrogen,
ozone, and both surface and upper air meteorological measurements from the Photochemical
Assessment Monitoring Station (PAMS)  network.  There are  24 PAMS area with the more
established areas having sties with up to eight years of data. Continued national and local analyses
of the PAMS data provides: 1) insight into how ozone precursors and toxic pollutants contribute to
the ozone problem; 2) a trends assessment of ozone, ozone precursors, and toxic pollutants; 3) an
evaluation of pollutant management programs; and, 4) a database for developing control strategies.
EPA also will explore and implement improvements to emissions testing and monitoring approaches
for VOCs, including better and less expensive continuous monitors and more reliable techniques for
analysis of water-based coatings, inks, and other solvents. EPA will also work to improve emissions
testing and monitoring of NOx emissions required in SIPs.

       In FY 2001, EPA will propose Phase II of the NOx SIP Call that will provide state emission
budgets for 19 eastern states, the District of Columbia and portions of Missouri and Georgia, as well
as codify definitions of electric generating units and internal combustion engines. In FY 2002, the
Clean Air Markets Division (CAMD), the  EPA Headquarters organization with responsibility for
administering  the  Acid Rain Program, will also continue implementing the Ozone Transport
Commission's NOx Budget Trading program. Additionally, CAMD has begun start-up operations
for implementation of the Section 126 and NOx SIP Call trading programs.  These programs could
comprise an additional 1,400 units requiring review of monitoring plans, certification of monitoring
methods, and reporting of quarterly emissions for the  ozone-season, NOx control program.
Furthermore, CAMD will  administer the  Emission and Allowance Tracking Systems  for these
programs that will involve trading across up to 19 states and the District of Columbia.

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       To address the need for further reductions in motor vehicle emissions to attain and maintain
the current as well as the new NAAQS, the Agency will implement current motor vehicle and fuel
standards and develop new programs. In calendar year 1996, light-duty vehicles (LDVs) and light-
duty trucks (LDTs) contributed more than 22 percent of national NOX emissions and 25 percent of
VOC emissions. Heavy-duty trucks and buses also contribute greatly to the nation's air quality
problems, accounting in calendar year 2000 for about one-third of NOx emissions from mobile
sources.  To address these issues, in FY 2000, the Agency promulgated the Tier II program for
LDVs/LDTs to begin in calendar year 2004.  This program established new tailpipe standards for all
passenger vehicles and new limits for sulfur in gasoline.  The new standards will reduce NOx
emissions by 74 percent (2 million tons per year by calendar year 2020 and nearly 3 million tons
annually by calendar year 2030). In F Y 2002, EPA will fully implement Tier 2 regulations for LDVs,
LDTs, and medium duty passenger vehicles.  This will allow manufacturers to certify at Tier 2
standards under early opt-in provisions for Tier II standards.

       In F Y 2001, the Agency promulgated new standards for heavy-duty vehicles and engines. The
first phase of the program (promulgated in FY 1997 and reaffirmed in FY 2000) requires gasoline
trucks to be 78 percent cleaner and diesel tracks to be more than 40 percent cleaner than today's
models. This phase will reduce NOx emissions by 2.4 million tons annually when the program is
fully  implemented in  calendar year 2030 and  thereafter.  The second phase established a
comprehensive national program that  will regulate trucks and buses and diesel fuel as a single
system, with the new emission standards taking effect in calendar year 2007. The level of sulfur in
highway diesel fuel will be reduced by 97 percent by mid-2006. As a result of mis program, each new
truck and bus will be more than 90 percent cleaner than current models, resulting in a reduction of
2.6 million tons of NOx emissions in calendar year 2030. In FY 2002, the Agency will continue work
to implement Tier II vehicle and gasoline standards and the new calendar year 2004/2007 heavy-duty
highway engine and diesel sulfur  requirements.   This includes  continued assessment of the
development of clean engine and fuel technology. In addition, EPA will begin rulemaking to consider
new standards for heavy-duty non-road, land-based diesel engines and vehicles, potentially including
new diesel fuel sulfur  requirements.   Additionally,  in FY 2002, the Agency, as  part of the
implementation of the existing Tier I and National Low Emission Vehicle (NLEV) programs, will
continue to ensure that emission benefits from these programs are achieved through vigorous
compliance programs.

       EPA plans to finalize programs that will address emissions from a range of unregulated non-
road sources and, possibly, highway motorcycles.  The non-road sources include industrial spark-
ignition engines (e.g., forklifts and generators), recreational gasoline engines (e.g., all terrain vehicles
and off-road motorcycles), and certain recreational  marine gasoline and diesel engines.  Emissions
from these engines together account for about 11 percent of hydrocarbon emissions and 3 percent of
NOx emissions. The anticipated emission standards will significantly reduce emissions from engines
that contribute to ozone formation, as well as carbon monoxide and toxics.

       In F Y 2002, the Agency will propose standards for engines used in ocean-going vessels under
a court-ordered  schedule. A final rule for these engines is due  in January 2003.  In FY 2000, the
Agency promulgated standards for smaller commercial marine diesel engines. Commercial marine
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diesel engines account for about 4.5 percent of the mobile source NOx inventory; however, their
extensive use around harbors causes a greater concentration of emissions in port cities.

       EPA will continue implementing other mobile source programs addressing ozone emissions.
The first phase  of emission standards for locomotives that will result in more than 60 percent
reduction in locomotive NOX emissions began in calendar year 2000. The next two phases of
locomotive standards will take effect in calendar year 2002 and in calendar year 2005. In FY 2002,
the Agency will continue to evaluate certification test data to ensure locomotive designs comply with
standards.  In addition, the Agency will begin collecting production line test data to ensure that
production engines meet emission requirements for model year 2002 locomotives.

       Another recent program that EPA will be implementing hi F Y 2002 is the Phase 2 standards
for small spark-ignition handheld engines (e.g., trimmers, brush cutters, and chainsaws). The new
standards will be phased in  beginning with the FY 2002 model year.  This program will reduce
HC+NOx emissions by 70 percent. This is equivalent to an annual reduction of 500,000 tons of
HC+NOx by the calendar year 2027. This reduction is accompanied by an overall reduction in fuel
consumption.

       An important element of the Agency's work on controlling emissions is to ensure emission
data from the different categories of mobile sources. In FY 2000, the Agency started development
of a Portable Emission Measurement System (PEMS)  that will allow the Agency to acquire in-use
emission data in a cost-effective manner.  In FY 2001, EPA developed in-use NOx and PM
measurement capability. In FY 2002, the system will be expanded to include the measurement of
toxics. In the near-term, the Agency plans to use this portable system to characterize in-use emissions
from light-duty vehicles, heavy-duty highway vehicles, and non-road equipment. The newly acquired
emission data will enhance our emission models. In the long-term, PEMS will find widespread
application by EPA, states, and industry for compliance and in-use emission monitoring purposes.
       The Agency also will emphasize improvements in our transportation emission models in FY
2002. In FY 2001, EPA started the development of an architectural framework for a new generation
model that will greatly improve our ability to support the development of emission control programs,
as well as providing support to the states in their determination of program needs to meet air quality
standards. The Agency will start developing the new transportation emission model in FY 2002.
The Agency will continue providing guidance and training in the use of mobile source models.

       EPA will partner  with states, tribes, and local  governments to create a comprehensive
compliance program to ensure that vehicles and engines are clean.  EPA will use advanced in-use
measurement techniques and other sources of in-use data to monitor the performance of on-board
diagnostic (OBD) systems on vehicle models to make sure that OBD  is a reliable check  on the
emissions systems as part of vehicle  inspection and maintenance (I/M) programs.   With this
information, EPA will work  to establish an integrated information system which  allows for
assessment and action on those vehicles and engines which present the greatest environmental risk.
Additionally, EPA will continue its public education and outreach efforts to ensure that the public and
vehicle repair technicians understand OBD.

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       In FY 2001, about 35 states are operating I/M programs.  EPA will continue providing
technical and programmatic guidance to states and local agencies for implementing these programs.
In FY 2002, EPA will assist the states in incorporating OBD inspections into operating  I/M
programs. EPA will support states in the evaluation of I/M programs as directed by the Clean Air Act
and the National Highway System Designation Act.

       As part of implementing the ozone standard and regional haze rule, EPA's Transportation Air
Quality Center, in cooperation with the Department of Transportation, will continue assistance to
states and local governments including implementation of the transportation conformity requirements.
EPA  will continue to ensure national consistency in our adequacy findings for  motor vehicle
emissions budgets in air quality plans.

       In addition, EPA will work with states and local governments to ensure the technical integrity
of the mobile source controls in the SIPs. EPA will assist areas in identifying the most cost effective
control options available.

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

       The Agency will continue implementing Phase II of the reformulated gasoline (RFG) program,
which will result in additional VOC, NOX, and toxic emission reductions in 17 states and the District
of Columbia, and will provide technical and programmatic guidance to states implementing clean fuel
programs. RFG is designed to reduce vehicle emissions of ozone-forming and toxic pollutants and
it is estimated to reduce VOC emissions by 27 percent, toxic emissions by 22 percent, and NOX
emissions by 6.8 percent. EPA will continue to address issues associated with the use of oxygenates
(e.g., MTBE and ethanol) in RFG, with emphasis on implementing September 1999 recommendations
from  the "Blue Ribbon  Panel  on the Use of  Oxygenates in Gasoline."   EPA will process
approximately 100,000 fuel quality reports and review 156 fuel surveys with 17,000 samples.

       The National Vehicle and Fuels Emissions Laboratory  (NVFEL) will continue to conduct
vehicle emission tests as part of the pre-production tests, certification audits, in-use assessments, and
recall programs to support mobile source clean air programs. In FY  2002, EPA will continue
conducting testing activities for fuel economy, LDV and heavy-duty engine (HDE) characterization,
Tier II testing, reformulated gasoline, future fleets, OBD evaluations, certification audits and recall
programs. EPA also will continue to conduct separate in-use testing on heavy-duty diesel engines to
ascertain compliance with consent decrees related to violations of defeat device prohibitions and will
expand its in-use presence to include non-consent decree engines and non-road diesel engines as well.
In addition, NVFEL will conduct energy efficiency tests of electric vehicles in collaboration with the
Department of Energy (DOE) and non-road vehicle emission testing in support of non-road regulatory
development.

       To support confirmatory and compliance programs, the NVFEL will conduct 400 certification
and fuel economy tests on LDV, LDT and Light-Heavy Duty Vehicles (LHDV) and will conduct 240
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compliance tests on in-use LDVs and LDTs. NVFEL will also conduct an approximately equivalent
amount of testing of LDV and heavy duty engines for regulatory development.

       The mobile source compliance program will oversee more than 225 original equipment
manufacturers to ensure that vehicles and engines will meet the  applicable emission standards
throughout their useful life.  The program issues nearly 2,200 certificates of conformity annually.
Compliance is audited and ensured through pre-production certification, assembly line testing, and
in-use testing and recall. For light-duty vehicles and trucks, there also is a fuel economy compliance
program, which in FY 2002 will issue  1,000 fuel economy consumer labels, data for the EPA/DOE
Gas Mileage Guide and "gas guzzler" tax collection, and data to calculate the Corporate Average Fuel
Economy (CAFE) values for all light-duty manufacturers.  The mobile source fees program will
collect approximately $11 million in FY 2002, offsetting costs of the certification, recall, selective
enforcement audit, and fuel economy programs.

       The FY 2002 model year will be the second year of mandatory participation in the Agency's
new compliance assurance program (CAP 2000). CAP 2000 will simplify and streamline the current
procedures for pre-production certification of new motor vehicles.  Manufacturers are projected to
save $55 million each year under the  CAP 2000 program.  Under  CAP 2000, manufacturers will
supply in-use test data for each class of vehicle sold. These data will be an important tool for the
Agency in targeting its recall testing investigations.

Particulate Matter

       PM is the term for solid or liquid particles found in the air. Some particles are large enough
to be seen  as soot or smoke.  Others are so small they can be detected  only with an  electron
microscope.  The PM NAAQS were revised in 1997 in part to separately address both fine (PM2 5)
and coarse particles. Because particles originate from a variety of mobile  and stationary sources
(diesel trucks, woodstoves, power plants, etc.), their chemical and physical compositions vary widely.
PM can be directly emitted or can be  formed in the atmosphere when gaseous pollutants, such as
sulfur dioxide (SO2), VOCs and NOX, react to form fine particles.

       Both fine and coarse particles can accumulate in the respiratory system and are associated with
numerous health effects.  Coarse particles can aggravate respiratory conditions such as asthma.
Exposure to fine particles is associated with several serious health effects, including premature death.
Health effects have been found to be associated with PM exposures that occur both over short- (such
as a day) and long-term (a year or more) periods.  When exposed to PM, people with existing heart
or lung diseases—such as asthma, chronic obstructive pulmonary disease, congestive heart disease,
or ischemic heart disease—are particularly vulnerable and may be at increased risk of premature death
or admission to the hospital or emergency room. The elderly also are  sensitive to PM exposure. They
are at increased risk of admission to hospitals or emergency rooms and, perhaps, premature death
from heart or lung diseases. When exposed to PM, 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. PM can increase susceptibility to respiratory
infections and aggravate existing respiratory diseases, such as asthma and chronic bronchitis, causing
increased medication use and increased doctor visits.

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       In FY 2001,  as part of our ongoing review, EPA will complete and make available to the
public a comprehensive assessment of the recent scientific findings regarding air quality, exposure,
and health and environmental effects of PM in the PM Criteria Document. Based on the scientific
information in the PM Criteria Document, EPA is preparing a Staff Paper that will evaluate the policy
implications of the available scientific information and identify critical elements that should be
considered in the Administrator's decision whether to retain or revise the PM NAAQS. The Criteria
Document and Staff Paper will be reviewed by the Clean Air Scientific Advisory Committee
(CASAC) and made available for public comment. Following completion of these documents, EPA
anticipates proposing a decision on whether to retain or revise the PM NAAQS in FY 2002.

       EPA is better defining the PM2 5 (or PM fine) problem by assisting states and tribes in
establishing  and  maintaining  a  nationwide monitoring  network  and carrying out  source
characterization analyses. Since promulgating the new PM2 5 standards, EPA has been working with
states and tribes to install monitors and obtain data on PM2 5  particle emissions.  This compliance
network was fully operational as of December 31, 1999. EPA has committed to providing  100
percent of the funding through state and Tribal grants under the authority of section 103 of the Clean
Air Act for operation and maintenance of the network.  EPA also will promote the use of continuous
PM monitoring and improved PM fine test methods.  States and tribes will also use the air quality
data and chemical speciation data to identify PM sources and "hot spots" for purposes of developing
any SIPs and TIPs that may ultimately be required depending on the resolution of the NAAQS
litigation.  As recommended by NAS,  EPA is discussing with the Clean Air Science Advisory
Committee ways to increase the usefulness of the resultant monitoring data to PM health effects  and
epidemiology researchers.

       EPA, states, and tribes will continue to implement the CAA requirements for the pre-1997
PMio standard,  including bump-ups and  SIP rulemaking  actions  on plans for  serious PMio
nonattainment areas. Monitoring data for PM^ will continue to be used to characterize emission
sources, evaluate air quality models, and contribute to the regular scientific health review of the
standard.  The Air Quality Index is being expanded to include information on PM and to provide
health information to the public on the impact of exposure to various levels of PM.

       To ensure the source and ambient monitoring measurements are credible, EPA will continue
to develop and conduct quality assurance protocols. Currently our efforts are focused on the quality
assurance of the ambient PMis monitoring network because of its recent establishment.

       In  FY 2002 and beyond, EPA will also develop improvements to  source testing  and
monitoring methods for PM and PM2.5 emissions from stationary sources.  These  method
improvements are needed at this time for characterization of PMzs emissions. The improved methods
will also be available for determining compliance with any future PM2.5 SIP emission limits that may
be needed.

       EPA will continue to assist states, local governments, and tribes in maintaining  existing
control programs and in devising stationary source and mobile source strategies to reduce PM. EPA
will provide guidance on SIP requirements, the impact of fire and agricultural processes on PM levels,
and benefits to PM implementation of regulations designed for controlling toxics. EPA will further

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provide guidance that integrates any future implementation of PM standards with implementation of
the new regional haze rule.

       Levels of PM caused by mobile sources may rise in the future due to the projected increases
in the number of individual mobile sources and in motor vehicle travel. The Agency will continue to
seek further reductions in motor vehicle emissions to attain and maintain the NAAQSs through the
review of current motor vehicle and fuel standards and the development of new programs.  Heavy-
duty tracks and buses today account for one-quarter of PM emissions from mobile sources. In some
urban areas, the contribution is even greater. In FY 2001, EPA promulgated  the new diesel fuel
standards and heavy-duty vehicle and engine standards that will significantly reduce emissions from
diesel trucks and buses. The new program will result in PM emission levels that are 90 percent below
2000 levels. By 2030, the program will reduce annual emission of PM by 109,000 tons. The Agency
will continue working toward implementing these standards. This includes continued assessment of
the development of new emission control technology.  In addition, EPA will begin rulemaking to
consider new standards for heavy-duty non-road, land-based diesel engines and vehicles, including
potentially new diesel fuel sulfur requirements.

       In FY 2002, EPA will continue to help create voluntary diesel retrofit projects to reduce PM
from older, high-polluting trucks and  buses.  In  some cases, EPA will help fund  the costs of
purchasing emission control devices, such as PM filters and oxidation catalysts. EPA also will
increase efforts to promote the use of emerging retrofit emission control technology and will partner
with states, EPA regional offices, local administrations, private fleets, and industry members.

       In FY 2002, EPA also will propose standards for commercial and recreational diesel marine
engines under a court-ordered schedule. A final rule for these engines is due in January 2003.  The
anticipated emission standards from these categories will result in reductions of PM.

       In FY 2002, EPA will continue implementing other mobile source programs addressing PM
emissions. The emission standards for locomotives that will result in more than 40 percent reduction
in PM, began in 2000 (Tier 0). Tier 1 standards  will take effect in FY 2002 and Tier 2 standards in
FY 2005.  In FY 2002,  the Agency will continue to evaluate certification  test data to insure
locomotive designs comply with standards. In addition, the Agency will begin collecting production
line test data.

       As discussed earlier for ozone, an important element of the Agency's work on controlling
emissions is to ensure the accuracy of emission data from the different categories of mobile sources.
In 2000, the Agency started development of a Portable Emission Measurement System (PEMS) that
will allow the Agency to acquire in-use emission data hi a cost-effective manner. In FY 2001, EPA
developed in-use NOx and PM measurement capability. In FY 2002, the system will  be expanded
to include the measurement of toxics. The Agency plans to use this portable system to characterize
in-use emissions from light-duty vehicles, heavy-duty highway vehicles, and non-road equipment.
The newly acquired emission data will enhance our emission models.

       Improving our models is another area that the Agency will be addressing in FY 2002.  In FY
2001, EPA started the development of an architectural framework for a new generation model that

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will greatly improve our ability to support the development of emission control programs, as well as
providing support to the states in their determination of program needs to meet air quality standards.
The Agency will start development of the new model in FY 2002.  The Agency will continue
providing guidance and training in the use of mobile source models.

       EPA will develop a series of guidance documents for the particulate matter program to provide
infrastructure for implementing the new standards. EPA will  continue public outreach activities,
especially to create materials for the general public on fine particulate matter.

Visibility

       Visibility impairment, caused by the presence of tiny  particles in the air, is most simply
described as the haze that obscures the clarity, color, texture, and form of what we see. The Clean
Air Act gives special protection to natural areas that we want to preserve for future generations, such
as our national parks and wilderness areas.

       EPA promulgated a final regional haze rule in FY 1999.  Because of regional variations in
natural conditions which combine with man-made pollution to produce regional haze, EPA believes
that regional haze should be addressed through a region-specific program that accounts for these
variations.  EPA worked with states to establish five regional planning organizations.  Through
dedicated funding included in this request, EPA is working  closely with the regional planning
organizations to develop the technical basis for future policy decisions and tailor programs that take
into account the varying conditions in the different geographical areas.

       Since FY 1987, EPA has supported the long-term visibility monitoring program known as the
Interagency Monitoring of Protected Visual Environments (IMPROVE) network.  The IMPROVE
network collects data on visibility, including optical and photographic data, at 110 sites. To broaden
understanding of Class I area visibility, EPA will work with states to add an additional 10-15 sites
using the IMPROVE protocol in FY 2002. EPA will work with western states to determine the steps
that are needed to preserve clear days and improve visibility in the 16 national parks and wilderness
areas located in the Colorado Plateau. An Eastern regional haze program will address visibility
impairment in the Appalachian Mountains. IMPROVE sites will also better characterize background
PM2 5 levels.

       In FY 2001, EPA proposed Best Available Retrofit Technology (BART)  rules that would
require certain larger, older plants to install BART as part of a state's strategy for improving visibility.
The proposal provides guidelines to states in selection of plants where BART should be applied and
determining the type of controls to be installed. The proposal will undergo a public comment period.

Implementation of NAAQS and Visibility Requirements

       Ground-level ozone, fine PM, and regional haze have many similarities. Both ozone and PM
(and the resulting regional haze) remain in the atmosphere for days, leading to regional scale transport
that can affect broad areas of the country. Both pollutants are formed under certain atmospheric
conditions by gases, such as NOK and VOCs, emitted by the same types of sources. There are similar

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health effects associated with exposure to ozone and PM (e.g., increased respiratory symptoms and
increased hospital admissions and emergency room visits for respiratory causes). The similarities
between the pollutants and the regional haze problem provide opportunities for integrated strategies
for reducing pollutant emissions in the most cost-effective ways.

       EPA also recognizes  the increased burden on state and local agencies in controlling multiple
pollutants.  To address this EPA is developing technologies to help states form control strategies to
address the multiple pollutants withNAAQS.  One of the activities EPA is currently engaged in is
developing an integrated ambient monitoring strategy to determine the optimal number of monitors
and associated man-hours needed for each pollutant given the competing needs of measuring the other
pollutants.  As we determine the need to add monitors or change location of monitors in the network,
we will use this strategy to minimize any increase in resources needed.

       The strategy for implementing any new ozone and particulate matter standard together with
regional haze requirements will be targeted at maintaining air quality protection efforts currently
underway and building on the agreements and progress already made by communities and businesses.
In carrying out the implementation strategy, EPA will seek to reward state, Tribal, and local
governments and businesses that take early action to reduce air pollution levels through cost-effective
approaches and address pollution that travels across jurisdictional lines.  EPA will work with states
and tribes to develop control programs that employ regulatory flexibility to minimize economic
impacts on businesses to the greatest possible degree consistent with human health protection. EPA
also will attempt to minimize regulatory burdens for states, tribes, local governments, and businesses
and ensure that air quality  planning  and related Federal,  Tribal,  state and local  planning  are
coordinated.

Carbon Monoxide

       Carbons monoxide (CO) is a colorless, odorless gas that enters the bloodstream and interferes
with the delivery of oxygen to the body's organs and tissues.  People with cardiovascular disease,
such as angina, are most at risk from carbon monoxide. These individuals may experience chest pain
and generally increased cardiovascular symptoms if they are exposed to carbon monoxide, particularly
while exercising. People with marginal or compromised cardiovascular and respiratory systems (e.g.,
individuals with congestive heart failure, cerebrovascular disease, anemia, chronic obstructive lung
disease) and possibly fetuses and young infants may also be at greater risk to carbon monoxide
pollution in certain settings and conditions, mainly enclosed or indoor spaces,

       CO is formed when carbon in fuels is not burned completely. It is a component of highway
vehicle exhaust, which accounts for 60 percent of all CO emissions nationwide. In cities, automobile
exhaust can cause as much as 95 percent of all CO emissions. As vehicle miles traveled continue to
increase each year, these emissions can result in high concentrations of CO, particularly in local areas
with heavy traffic congestion.  Other sources of CO emissions include industrial processes and fuel
combustion in sources such as boilers and incinerators.

       EPA has set standards for CO and currently assists states, tribes, and local agencies in
implementing strategies to reduce CO pollution and maintain compliance with the standard. Clean

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air plans for CO include many mobile-source related programs such as auto tailpipe standards and
oxygenated gasoline. There has been a significant downward trend in concentrations and emissions
of CO. Approximately 16 of the total 43 areas still do not meet the CO air quality standard set to
protect human health.

       In FY 2001, EPA will continue to assist states, tribes, and local agencies in implementing
strategies to reduce CO pollution and maintain compliance with CO standards. As a result of these
efforts, EPA expects an additional 4 areas to attain the NAAQS for CO in FY 2002.

       In FY 2002, EPA plans to finalize programs that will address emissions from a range of
unregulated non-road sources and, possibly, highway motorcycles.  The non-road sources include
industrial spark-ignition engines (e.g., forklifts and generators), recreational gasoline engines (e.g.,
snowmobiles and off-road motorcycles), and recreational  marine  gasoline and diesel engines.
Emissions from these engines together account for about 9 percent of CO emissions. The anticipated
emission standards will reduce emissions from engines that potentially expose people to high
concentrations of poisonous CO exhaust.

       In FY 2001, the NAS will begin a 2-year study for EPA of CO episodes in conjunction with
meteorological and topographical problem areas, the human health significance of such episodes and
strategies for these nonattainment areas.  EPA is currently reviewing the NAAQS for CO and has
completed the CO Criteria Document. In F Y 2002, EPA anticipates completing the staff paper, taking
into account CASAC review and public comment, and proposing a decision whether to retain or
revise the CO NAAQS with promulgation following in FY 2003.

Sulfur Dioxide

       Sulfur dioxide (SO2) belongs to the family of gases called sulfur oxides (SOJ. These gases
are formed when fuels (mainly coal and oil) containing sulfur are burned, and during metal smelting
and other industrial processes. Children and adults with asthma who are active  outdoors are most
vulnerable to the health effects of sulfur dioxide.  The primary effect they experience is a narrowing
of the airways (called bronchoconstriction), which may cause symptoms such as wheezing, chest
tightness and shortness of breath.  Symptoms increase as sulfur dioxide concentrations and/or
breathing rates increase. When exposure is relatively brief, lung function typically returns to normal
within an hour of exposure. Long-term exposure to both sulfur dioxide and fine particles can cause
respiratory  illness, alter the lung's  defense mechanisms, and aggravate  existing cardiovascular
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 is also a precursor to sulfates, which are associated with acidification of lakes and
streams, accelerated corrosion of buildings and monuments, and reduced visibility. Approximately
28 of the total 55 areas still do not meet the NAAQS for SO2.

       EPA will continue to ensure that all areas are in compliance with the standard and will review
the standard, as the Clean Air Act mandates, to ensure that it adequately protects human health. The
courts have remanded the most recent review of the SO2 standard the D.C. Circuit Court of Appeals

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has remanded for further explanation our most recent decision not to revise the SO2 NAAQS by
adding a new 5-minute SO2 standard. In a January 9,2001 Federal Register notice, EPA announced
it would await a Supreme Court decision on the ozone and PM NAAQS before responding to the SO2
remand. In the same notice, EPA provided new 5-minute data and analyses of that data. Because the
results of the data analyses continue to suggest that there may be a number of locations in the country
where repeated exposures to 5-minute peak SO2 levels could pose a risk of health effects, EPA will
consider taking final action a previously proposed intervention level program. This program gives
states guidance on identifying and addressing high, short-term peaks that occur for short durations
(five minutes) but that can cause bronchial constriction in asthmatics, a serious health concern. In
FY 2002, should EPA decide to go forward with the intervention level program, EPA will would
provide additional guidance as needed to states and tribes on  implementing the intervention level
program. EPA will increase efforts to reduce the more pervasive sulfur oxides through the acid rain,
particulate matter, and regional haze programs that are described under those objectives.  These
efforts will result in 3  additional areas coming into compliance with the SO2 NAAQS in FY 2002.

Nitrogen Dioxide

       Nitrogen dioxide (NO2) belongs to a family of highly reactive gases called nitrogen oxides.
Nitrogen oxides form when fuel is burned at high temperatures and result primarily from  motor
vehicle exhaust and stationary sources such as electric utilities and industrial boilers. With regard to
human health effects, in children and adults with respiratory disease, such as asthma, nitrogen dioxide
can cause respiratory  symptoms such as coughing, wheezing, and shortness of breath. Even short
exposures to nitrogen dioxide affect lung function. In children,  short-term exposure can increase the
risk of respiratory illness.  Animal studies suggest that long-term exposure to nitrogen dioxide may
increase susceptibility to respiratory infection and may cause  permanent structural changes in the
lungs. Nitrogen oxides can also serve as precursors to ozone and particulate matter.  Nitrogen oxides
react with volatile organic compounds  in the presence of sunlight to form smog. Nitrogen dioxide
can be converted into fine nitrate aerosols, a constituent of fine particles (PM2 5).  In addition, it is a
strong oxidizing agent and reacts  in the air to form corrosive  nitric acid, as well as toxic organic
nitrates. They can also have adverse effects on both terrestrial and aquatic ecosystems, contributing
to acid rain and eutrophication in coastal waters.

       EPA has made progress toward reducing the emissions  of nitrogen oxides and achieving the
goal of having all areas in attainment for NO2 by 2005. Over the next several years we will  continue
to work to maintain air at safe levels of NO2. We will also review the standard  to assure that it
continues to protect human health  and welfare.

       Because NO2 is atropospheric ozone precursor, control  of NQ2 is a way to reduce ozone. The
narrative for the tropospheric ozone obj ective describes efforts to reduce the more pervasive nitrogen
oxides in the acid rain and mobile source programs, encouraging market-based, low-cost pollutant
trading. These programs will simultaneously address nitrogen  oxides, tropospheric ozone, and fine
particulate matter.
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 Lead

       Exposure to lead mainly occurs through inhalation of air and ingestion of lead found in food,
 paint, water, soil, or dust. Lead accumulates in the body in blood, bone, and soft tissue. Because it
 is not readily excreted, lead also can affect the kidneys,  liver, nervous system and other organs.
 Excessive exposure to lead may cause kidney disease, reproductive disorders, and neurological
 impairments such as seizures, mental retardation, and/or behavioral disorders. Fetuses and children
 are especially susceptible to low doses of lead, often suffering central nervous system damage or
 slowed growth.

       Thanks largely to reduced use of leaded gasoline, human exposure to lead air emissions is
 currently less of a problem. Today, smelters and battery plants are the major sources of lead in the air.
 Approximately six of the total 13 areas still do not meet the NAAQS for lead.

       EPA will continue a relatively low level of existing work, emphasizing the few nonattainment
 areas near smelters. Mandating the use of unleaded gasoline will continue to be the most effective
 way to prevent airborne lead. An additional 3 areas will come into compliance with the NAAQS in
 FY2002.

 Cross-Pollutant Operating .Permits and New Source Review

      EPA will make revisions to Part 70 operating permit rules to streamline permit revision
procedures and will provide technical support to Regions, states, tribes and local agencies on permit
program revisions.   By the end of FY 2002, EPA intends, with assistance from state and local
permitting authorities, to complete the first round of Part 70 permit issuances. Also, in FY 2002 and
continuing for several years thereafter, the Agency will survey the permitting program implementation
efforts and the results  of industry-conducted monitoring on compliance status.  The Agency will
continue  and  expand training and technical support efforts to ensure smooth incorporation into
operating permits of the Compliance Assurance Monitoring, MACT, and other rules  becoming
effective in FY 2002 and beyond. The Agency also will continue to be involved in and expand, as
needed, efforts to reform and streamline permitting programs.

      Research

Conduct National Ambient Air Quality Standards (NAAQS) Related Research

      To protect human health and eco-systems from the adverse effects of air pollution, EPA's
NAAQS-related research program has a two-fold purpose: (1) periodic review and revision as needed
of the NAAQS, (i.e., risk assessment, exposure and effects research);  and (2)  implementation and
attainment of the NAAQS, (i.e., atmospheric chemistry,  air quality models and risk management
research). The F Y 2002 request focuses primarily on research to address the two NAAQS pollutants
that pose the greatest risk to human health: tropospheric ozone and particulate matter (PM).  Modest
research and technical support efforts to support other NAAQS pollutants are described in the
tropospheric ozone  section.
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Tropospheric Ozone and Related NAAQS

       Tropospheric ozone research will focus on the development of improved risk assessment
procedures and completion of the Air Quality Criteria Document (AQCD) for ozone.  Planning,
development and/or consultation will also continue for other related NAAQS. Activities will include
research to improve measurement methods and  observation-based assessments, the accuracy of
emission estimates, and atmospheric chemistry and modeling.

       Methods and observations-based assessments in FY 2002 will provide a reliable means of
determining  state and local  emissions  reductions  by developing techniques to measure ozone
precursors and their transformation during meteorological transport. This research will develop,
through intensive regional field studies, observational-based methods to compliment emissions-based,
physical theory modeling.  In addition, continuing research will develop protocols, combining
modeling and observational approaches, for use by the scientific community in conducting integrated
multi-scale exposure assessments, and provide emissions profiles for mobile sources already being
characterized for their contribution to air toxics and PM exposure issues.

       Research to  improve the accuracy  of emission estimates from biogenic (i.e., naturally
occurring) and mobile sources will continue in FY 2002.  Biogenic emission research will develop
improved emission factors for additional vegetative types and compounds, particularly oxygenated
volatile compounds.  This work will  help determine how emissions change between seasons,
investigate the contribution of biomass burning to regional ozone precursor emissions, simulate
precursor emissions in complex ecological environments, and support model validation studies.  The
results from this research will be incorporated into future updates of the Biogenic Emissions Inventory
System (BEIS) used by federal, state and local air quality managers as inputs to air quality models and
inventory development.

       Mobile emissions research will focus on improving the spatial and temporal resolution of
emission estimates for highway vehicles through further development and validation of the Mobile
Emissions Assessment System for Urban and Regional Evaluation (MEASURE).  One important
addition will be a new module that will provide improved spatial and temporal emissions data for
heavy duty diesel tracks in urban areas. In addition, MEASURE will be upgraded to incorporate new
modules that will take into account the impacts on emissions of new regulations (Tier II Standards),
new vehicles and new fuels.  The data generated from this research will be used as input to the
atmospheric chemistry models that federal, state, and local environmental officials use to evaluate
NAAQS attainment strategies.  The mobile source research is closely coordinated with the EPA's
plans to develop a next generation regulatory emissions model for mobile sources.

       In the area of atmospheric chemistry and modeling, research will determine the causes for
NAAQS non-attainment (e.g., chemical constituents, sources and source regions, and meteorological
variables). Research will also describe the key missing features of the atmospheric chemistry of ozone
formation and produce mechanisms of this chemistry as modules for use in atmospheric chemistry
models. Developing, evaluating and applying atmospheric models for projecting the impacts of
alternative control strategies will also be a priority for ozone research in FY 2002.
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Particulate Matter

       EPA's particulate matter research portfolio is aligned along the ten priority topics identified
by the National Academy of Sciences (NAS) in a series of reports, the most recent of which was issued
in January 2001 (Research Priorities for Airborne Particulate Matter: Early Research Progress). The
next report, due near the end of FY 2002, will provide the NAS the opportunity to evaluate an
extensive body of research results.

       NAS Priority Topic 1- Outdoor measures  vs. actual human exposures to PM:  Under this
research topic, indoor source emissions research  planned for FY 2002 will improve data on the
emission rates and characteristics of particles emitted from both combustion (e.g., heaters) and non-
combustion (e.g., office equipment and consumer products) sources. Models to predict emissions from
these key source categories will be developed, and the influence of human activities on emissions will
also be considered. This research will provide valuable data which will be used to develop a better
understanding of the relative contribution of indoor and ambient sources to total personal or population
PM exposures.

       NAS Priority Topic 2 - Exposure of susceptible subpopulations to toxic PM components:
Research under this topic will develop data on exposure to PM for susceptible sub-populations. Work
will continue to develop exposure models that predict exposure, and link these exposure models to
atmospheric models and lung deposition models.

       NAS Priority Topic 3- Characterization of PM emission sources: The overall objectives of F Y
2002 PM research under this NAS topic are to: (1)  develop new or improved methods and models to
quantify or estimate emissions of primary fine particles and major gaseous precursors of secondary fine
particles; (2) provide data on the size distribution of the particles emitted; and (3) provide updated and
augmented data on the chemical composition of PM from a variety of sources. The program will focus
on measurement techniques that use dilution tunnels and other techniques to simulate the process of
plume cooling in the atmosphere. Emissions from  diesel vehicles, prescribed and open burning, and
combustion will be collected and methods to collect emissions from locomotives will be developed.
Differences in emission rates due to changes in operating conditions, engine design and age, and fuel
type will be included in the revised emission estimates. In addition, increased emphasis will be placed
on characterizing biological aerosols.

       Research planned on gaseous precursors will focus on sources of ammonia. Improved emission
factors for different types of animal husbandry operations (swine and poultry) and other area sources,
including on-road light-duty vehicles, will be developed.  This research will reduce uncertainties in
emissions estimates and increase the likelihood that strategies in State Implementation Plans (SIPs)
will achieve the emissions reductions required to comply with the NAAQS. The emissions data
generated will also be used to  develop more specific  source profiles for these sources. The new
profiles will provide EPA with a better understanding of the relationship between sources,  ambient
concentrations, and human exposures  and enhance the capability of states  to apportion  ambient
particulate matter to the sources of the particulate.
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       NAS Priority Topic 4 - Air quality model development and testing:  EPA atmospheric
measurement and modeling research in support of NAS priority topic 4 will evaluate the chemical and
physical processes that control the organic and inorganic chemical composition of PM and develop
urban-to-regional scale emissions-based air quality models and source apportionment models and their
component inputs. This effort will increase the understanding of atmospheric processes (including
meteorology) and chemistry that affect the secondary formation, transport and fate to support NAAQS
implementation planning. Additional research will be conducted to determine accurately the physical
properties,  chemistry and composition  of  atmospheric  aerosols and to develop and evaluate
measurement methods needed for applying and evaluating complex models that simulate atmospheric
processes.

       NAS Priority Topic 5 - Assess hazardous PM components: EPA will determine physical,
chemical, and biological characteristics (e.g., size, chemical composition) of particles responsible for
adverse health  effects, and dose-response relationships between PM constituents and adverse health
effects. This work, related to NAS priority topic 5, will involve an integrated, multi-disciplinary
approach, in which emission characterization and health information will guide chemical speciation
research.

       NAS Priority Topic 6 - Dosimetry: EPA PM dosimetry research in FY 2002 will investigate
where inhaled particles deposit in lungs and how particle deposition affects susceptibility. Efforts will
develop and validate models of factors affecting deposition such as ventilation rate, structural features
due to disease conditions and particle size.

       NAS Priority Topic 7 - Effects of PM and co-pollutants: Research efforts under NAS priority
topic 7 include in vivo and in vitro studies of interactions between PM and other air pollutants and
toxicology and clinical studies to investigate effects of co-pollutants on PM health effects, deposition,
and clearance. Further research under this topic will include epidemiology studies to assess the
consequences of PM and co-pollutant exposures in at-risk populations.

       NAS Priority Topic 8  - Identify susceptible subpopulations:  Research to identify susceptible
subpopulations includes effects research to identify subpopulations with enhanced sensitivity to the
adverse effects  of PM  and  determine how host susceptibility factors influence dose-response
relationships. Effects research in this area will also develop animal models of human susceptibility
and be used to  conduct studies identifying morbidity effects on vulnerable population subgroups.

       NAS Priority Topic  9  - Toxicological mechanisms of injury:  Research  identifying the
toxicological mechanisms of injury will elucidate underlying cellular and molecular mechanisms of
toxicity responsible for adverse health outcomes (including pulmonary uiflammatory mechanisms and
cardiopulmonary and neurogenic response mechanisms).  This research will also determine physical,
chemical, and biological characteristics of particles responsible for adverse health effects.

       NAS Priority Topic 10 - Analysis and measurement: EPA analysis and measurement research
will support development of methods for the use of alternate indicators of exposure to PM, which can
be correlated with morbidity. Standard existing techniques for measuring nonvolatile PM will be
compared to existing techniques to determine PM2.5 mass across seasons and locations.

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       In FY 2002, EPA will also continue supporting the five university-based research centers
conducting particulate matter research. These research centers, established in FY 1999, advance the
scientific understanding of the health effects of PM through integrated exposure and health effects
studies targeted to all 10 high-priority research areas identified by the NAS. Also, with the completion
of the PM Air Quality Criteria Document in F Y 2001, an external review draft of a PM research needs
document will be developed in FY 2002.

       In addition, continued coordination and oversight of the Supersite monitoring activities, which
provide detailed air quality information to support atmospheric chemistry and modeling efforts, as well
as mechanistic toxicology and epidemiology studies that will support both future NAAQS decision-
making and implementation of the NAAQS, will continue in FY 2002.

       Also in FY 2002, laboratory and field research will be conducted cooperatively with the
Department of Energy  and the private sector to develop and test integrated multi-pollutant control
technologies that simultaneously reduce multiple air pollutants of concern including directly emitted
PM, secondary gaseous precursors (sulfur oxides, and nitrogen oxides) that form PM, and key air
toxics including mercury.
FY 2002 Change from FY 2001 Enacted Budget

EPM

       (-$12,971,400) The FY 2002 Request is $12,971,400 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.

       (-$500,000) EPA's FY 2001 appropriation provided $500,000 for a report from the National
       Academy of Public Administration evaluating the New Source Review and Prevention of
       Significant Deterioration programs.  This is an one time effort that will not require additional
       funding in FY 2002.

•      (-$496,100) This reduction is being taken in NOx program development.  This reduction
       reflects a shift from EPA development of the NOx reduction program to state implementation
       of the program. States will use funding available under the STAG appropriation to help meet
       their Clean Air Act responsibilities.

       (-$1,797,900; -2.1 FTE) This reduction reflects elimination of the BMP ACT program since
       environmental data is being made available to the public through other EPA programs.

•      (+$2,495,400)  This increase reflects an increase in workforce costs.
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S&T
       (-$5,624,600) The FY 2002 Request is $5,624,600 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.

       (-$375,800) This reduction reflects program efficiencies resulting from the close down of the
       Virginia Testing Laboratory in FY 2001 and the consolidation of in-use compliance testing
       activities at the Agency's National  Vehicle and Fuel Emissions Laboratory in Ann Arbor,
       Michigan.
       (+$1,394,000) This increase reflects an increase in workforce costs.
STAG
       (+$4,167,300) This funding level reflects the increased emphasis on the ozone and particulate
       matter NAAQS. States will receive funding under section 105 of the Clean Air Act to help
       develop state plans and integrated strategies.

       (-$2,833,400) Funding will be maintained at $5,000,000 to support section 103 grants for
       regional planning organizations and state and Tribal implementation of the regional haze rule.
       This funding level will allow the organizations to continue the problem characterization and
       other technical analyses necessary to meet Clean Air Act requirements.
      Research

S&T
       (+$2,844,000) This redirection within the PM research program will augment research in the
       atmospheric sciences which will support implementation-related research, focusing on research
       addressing  scientific issues about  modeling, chemistry, emission  and  measurement
       requirements necessary for states to devise successful PM NAAQS implementation plans.
       Specific questions that will be addressed include: (1) What measurement methods can be
       developed that  will  allow  for the  characterization of the size distribution,  chemical
       composition, and emission data from sources  found in the U.S.?; and (2) What are the
       adequately developed, tested and evaluated air quality modes that can represent the linkages
       between emission sources and ambient concentrations of the most  biologically relevant
       components of PM?

       (+$1,288,800, +3.2 FTE) Redirected resources will support PM exposure measurements
       research, including population-based sampling design  for  the  general population and
       susceptible subpopulations, personal exposure and ambient site measurements for PM and its
       toxic constituents, and airshed chemistry that could affect exposure to PM. This work will
       provide the basic field data to develop and test the Agency's Human Exposure Model.
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       (-$607,600, -7 FTE)  The reduction of 3.8 FTE will result in the delay of population-based
       studies of human exposure to PM toxic agents. The remaining 3.2 FTE will be redirected from
       human exposure panel studies to developing  methods  for  personal monitoring of toxic
       constituents of PM and research in different regions of the country and different seasons to
       account for differences in activity patterns, housing characteristics, and airshed chemistry that
       could affect exposure to PM. This work is the planned follow-on to the human exposure panel
       studies the Agency has done over the last three years.

       (-$1,000,000) Resources will be redirected from the PM environmental speciation research
       program (the "Supersites" program).  This redirection is in keeping with the PM research
       program's commitment to the Supersites, which is entering the final year of the original 5-year
       agreement.
       (-$2,211,200) This redirection will reduce PM NAAQS revision-related research, including
       toxicology and human exposure research involving work on PM mechanisms, susceptibility,
       and PM components.   A robust NAAQS revision-related research program will remain in
       2002, and the redirected resources will support implementation-related research in atmospheric
       sciences that will help states achieve the NAAQS.

       (-$3,307,700) The FY 2002 Request is $3,307,700 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the F Y 2001 appropriations process which are
       not included in the FY 2002 President's Request.
Annual Performance Goals and Performance Measures

Reduce CO2, SO2, NO2, Lead

In 2002     Maintain healthy air quality for 44.3 million people living in 70 areas attaining the CO, SO2,
           NO2, and Lead standards; increase by 350 thousand the number of people living in areas with
           healthy ah- quality that have newly attained the standard.

In 2001     Maintain healthy air quality for 31.1 million people living hi 56 areas attaining the CO, SO2,
           NO2, and Lead standards; increase by 13.2 million the number of people living in areas with
           healthy air quality that have newly attained the standard.

In 2000.    Maintained healthy air quality for 27.7 million people living in 46 areas attaining the CO, SO2,
           NO2, and Lead standards, and increased by 3.41 million the number of people living in areas
           with healthy air quality that have attained the standard.

In 1999     Healthy air quality for 22.8 million people living in 33 areas attaining the CO, SO2, NO2, and
           Lead standards was maintained, and 4.9 million more people are living in areas with healthy
           air quality that have attained the standard.

In 1999     13 of the 58 estimated remaining nonattainment areas have achieved the NAAQS for carbon
           monoxide, sulfur dioxide, or lead.

Performance Measures:                     FY 1999    FY2000    FY2001  .  FY2002
                                       Actuals     Actuals    Estimate    Request
                                             1-36

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Total Number of People Living in Areas
Designated in Attainment with Clean Air
Standards for CO, SO2,NO2, and Pb          27,718,000  31,100,000  44,333,286  44,683,286  People

Areas Designated to Attainment for the CO,
SO2, N02, and Pb Standards                  13          10         14          10          Areas

Additional People Living in Newly Designated
Areas with Demonstrated Attainment of the
CO, SO2, N02, and Pb Standards             4,918,531   3,410,000   13,223,286  350,000     People

CO Reduced from Mobile Sources             9,841,000   10,341,000  10,672,000  11,002,000  Tons

Total Number of People Living in Areas with
Demonstrated Attainment of the NO2 Standard  13,000,000  13,000,000  13,000,000  13,000,000  People

Baseline:    For SO2, Lead  and CO, 107  areas with a population of 65,573,000 were classified as
            non-attainment or were unclassified  in 1990.  Through 2000, 56  of those areas with a
            population of31.1 million have been redesignated to attainment. The 1995 baseline for mobile
            source emissions for CO was 70,947,000 tons.

Reduce Ozone and Ozone Precursors

In 2002     Certify that 3 new areas of the remaining 52 nonattainment areas have attained the 1-hour
            NAAQS for ozone, thus increasing the number of people living in areas with healthy air quality
            by 2.9 million.

In 2001     Maintain healthy air quality for 35.1 million people living in 44 areas attaining the ozone
            standard; increase by 1.9 million the number of people living in areas with healthy air quality
            that have newly  attained the standard; and certify that 5 new areas have attained the 1-hour
            standard for ozone.

In 2000     Maintained healthy air quality for 33.4 million people living in 43 areas attaining the ozone
            standard.

In 1999     The Regions revoked the 1 -hour standard in 10 areas.  However, based upon the Circuit Court
            decision regarding the revised ozone standard, the Agency has proposed to reinstate the 1 -hour
            standard.

In 1999     Healthy air quality maintained for 33.4 million people living in 43 areas attaining the ozone
            standard.

Performance Measures:                       FY1999    FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Total Number of People who Live in Areas
Designated to Attainment of the Clean Air
Standards for Ozone                         33,363,000  35,063,000  36,976,000  39,861,000  People

Areas Designated to Attainment for the
Ozone Standard                             0153           Areas

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


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Ozone Standard

VOCs Reduced from Mobile Sources

NOx Reduced from Mobile Sources
0           1,700,000    1,876,000    2,885,000    People

1,409,000   1,562,000    1,659,000    1,755,000    Tons

898,000     1,059,000    1,189,000    1,319,000    Tons
Baseline:    As a result of the Clean Air Act Amendments of 1990, 101 areas with a population of
            140,015,000 were designated nonattainment for the 1 -hour standard. Through 2000,44 areas
            with a population of 35.1 million have been redesignated to attainment and 57 areas remain in
            nonattainment. The 1995 baseline for VOCs reduced from mobile sources is 8,134,000 tons
            and 11,998,000 tons for NOx, both ozone precursors.

Reduce Paniculate Matter

In 2002     Maintain healthy air quality for 1.3 million people living in 15 areas attaining the PM standards;
            increase by 60 thousand the number of people living in areas with healthy air quality that have
            newly attained the standard.

In 2001     Maintain healthy air quality for 1.276 million people living in 9 areas attaining the PM
            standards; increase by 60 thousand the number of people living in areas with healthy air quality
            that have newly attained the standard.

In 2000     Maintained healthy air quality  for 1,2 million people  living in  7 areas attaining the PM
            standards, and increased by 75.8 thousand the number of people living in areas with healthy air
            quality that have attained the standard.

In 1999     Healthy air quality maintained  for 1.2  million people living in 7 areas attaining thePM
            standards.

In 1999     EPA deployed  PM-2.5 ambient monitors including: mass, continuous, specification, and
            visibility sites resulting in a total of 1110 monitoring sites.
Performance Measures:
National Guidance on PM-2.5 SIP and
Attainment Demonstration Requirements

Provide Draft.Documents to CASAC for PM
NAAQS Review

Cumulative total number of monitoring
sites deployed

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

Areas Designated  to Attainment for the
PM-10 Standard
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
1 Draft


30-Sep-2000


1,110
                                    Issued
                                    Sites
1,200,000   1,275,800   1,336,000   1,396,000    People
0
                                    Areas
Additional People Living in Newly Designated
Areas with Demonstrated Attainment of the
PM Standard 0                               75,800
            60,000
            60,000
            People
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PM-10 Reduced from Mobile Sources

PM-2.5 Reduced from Mobile Sources
                               18,000      20,000      22,000     23,000      Tons

                               13,500      15,000      16,500      17,250      Tons
Baseline:
As a result of the Clean Air Act Amendments  of 1990, 84 areas with a population of
31,114,000 were designated non-attainment for the PM-10 standard. Through 2000, 9 areas
with a population of 1.3 million have been redesignated to attainment. The 1995 baseline for
PM-10 reduced from mobile sources is 880,000 tons and 659,000 for PM-2.5.
Research
Ozone Measurement Research

In 2002      Provide tropospheric ozone precursor measurement methods, emissions based air quality
            models, observations based modeling methods, and source emissions information to guide State
            Implementation Plan (SIP) development to attain the ozone National Ambient Air Quality
            Standards.

In 2001      Develop tropospheric ozone precursor measurements methods, emissions based air quality
            models, observation based modeling methods, and source emissions information to guide State
            Implementation Plan (SIP) development under the current NAAQS.

In 2000      EPA developed tropospheric ozone precursor measurement methods, emissions-based air
            quality models, observations-based modeling methods, and source emissions information to
            guide State Implementation Plan (SIP)  development under  the current ozone  NAAQS by
            completing the products below.

In 1999      Peer reviewed STAR research grants were awarded that focus on developing methodologies
            for assessing uncertainties in  emission inventories and techniques for incorporating GOES
            satellite data to improve regional scale ozone modeling assessments.
Performance Measures:
                               FY 1999
                               Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
Recommend method for measuring NOx
(nitrogen oxides and their products)                       30-Sep-2000

Complete development and begin evaluation
of the "Morphecule" approach for including
complex chemical reaction mechanisms in
photochemical pollution models like
Models-3/CMAQ to be used in SIP dev.                    1

Complete evaluation of Models-3/CMAQ
against field data to demonstrate reliability
in ozone NAAQS attainment planning                     20-Jul-2000

hi 1999 report on quantifying the uncertainty in
emissions, chemical parameters and
meteorological conditions for trajectory model. 31 -Dec-1999
Complete evaluation of the "Morphecule"
approach; and complete a requirements
analysis for implementation and testing of the
Morphecule mechanism in Models-3/CMAQ.
                                                                             method
                                                                             approach
                                                                             model eval.
                                                                             approach
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Support development of future SIP
inventories by upgrading Biogenic Emissions
Inventory System Model to include data on
how agricultural and forestry activities impact
emissions of oxygenated VOCs.

Conduct initial field evaluation of NOx
methods and ozone indicator compounds,
e.g. peroxide measurements.

Update a faster, more detailed approach
(Morphecule mechanism) for modeling
atmospheric chemistry and work with EPA
staff to implement the mechanism in the
Agency's principle Air Quality Model.
                                              upgrade
                                              methodology
                                   1
                                  mechanism
Baseline:    EPA will provide NAAQS implementation tools that quantify emissions, model air quality, and
            develop the science to support control strategies for attaining clean air standards.  A key
            uncertainty in determining the adequacy of control strategies is understanding the sufficiency
            of NOx reductions and the necessary balance with VOC reductions to achieve full attainment.
            Methods and  observations-based assessments  in 2002 will provide a reliable means  of
            determining state and local emissions reductions by developing techniques to measure ozone
            precursors and their transformation during meteorological transport. This research will develop
            observational- based methods, through intensive regional  field  studies, to complement
            emissions based, physical theory modeling.  Research to improve the accuracy of emission
            estimates from biogenic (i.e., naturally occurring) and mobile sources will develop improved
            emission factors for vegetative types and compounds. Mobile source emissions research will
            focus on further development and validation of the Mobile Emissions Assessment System for
            Urban and  Regional  Evaluation (MEASURE),  which  provides more accurate emission
            estimates.

Ozone Research

In 2002     Complete the Air Quality Criteria Document for ozone and related photochemical oxidants to
            support review of the National Ambient Air Quality Standards (NAAQS) for tropospheric
            ozone and also provide SOx NAAQS support.

In 2001     Develop tropospheric ozone, NOx and SOx Air Quality Criteria Documents through planning,
            development, and consultation.

In 2000     EPA published results of the ozone epidemiology research program and research on the role
            of natural and  anthropogenic stresses in ponderosa pine ecosystems.   The Final Carbon
            Monoxide AQCD was completed. The draft Ozone AQCD has been deferred until FY01 to
            allow completion of the PM AQCD.
In 1999     Completed a release of ModeI-3/CMAQ-Version 2 for tropospheric ozone.
Performance Measures:
Final Carbon Monoxide Air Quality
Criteria Document.

Publish First External Review Draft of
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
                                              document
                                                 1-40

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Ozone Air Quality Criteria Document for
public comment and Clean Air Scientific
Advisory Committee (CASAC) review;                                1                      draft AQCD

Complete final Ozone Air Quality
Criteria Document                                                              1           final AQCD

Baseline:    Key uncertainties exist in determining the effects of chronic ozone exposures on humans and
            ecosystem effects of tropospheric ozone exposures. Ongoing tropospheric ozone research
            efforts in FY2002 will continue with the development of improved risk assessment procedures
            and completion of the Air Quality Criteria Document (AQCD) for  ozone.   Planning,
            development and/or consultation will also continue for other related NAAQS including the SOx
            NAAQS.

PM Effects Research

In 2002      Provide data on the health effects and exposure to particulate matter (PM) and provide methods
            for assessing  the  exposure and toxicity  of PM in healthy and potentially susceptible
            subpopulations to strengthen the scientific basis for reassessment of the NAAQS for PM.

In 2001      Provide new information on the atmospheric concentrations, human exposure, health effects
            and mechanisms of toxicity of particulate matter, and facilitate PM NAAQS review through Air
            Quality Criteria Document development and consultation.

In 2000      EPA provided new information on the atmospheric concentrations, human exposure, and health
            effects  of particulate matter  (PM), including  PM2.5, and  incorporated  it  and other
            peer-reviewed research findings in the second External Review Draft of the PM AQCD for
            NAAQS review.

In 1999      Three projects completed:  1) pilot study of methods to assess PM effects  on changes in
            cardiovascular and inflammatory endpoints; 2) long-term exposures to  PM  and effects on
            mortality and lung function; and 3) Interagency agreement with NIAID to support EPAs part
            of Inner City Asthma study.

In 1999      Completed three reports on PM: (1) describing research designed to test  a hypothesis about
            mechanisms of PM-induced toxicity; (2) characterizing factors affecting PM dosimetry in
            humans; and (3) identifying PM characteristics (e.g. composition) associated with biological
            responses.

Performance Measures:                      FY1999     FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Reports (1) describing research designed to
\test a hypothesis about mechanisms of
PM-induced toxicity; 2) charct. factors
affecting PM dosimetry in humans; 3) ID PM
characteristics (composition)                  3                                             reports

Hold CASAC review of draft PM Air
Quality Criteria Document.                               1                                  review

Complete longitudinal panel study data
collection & preliminary report on exposure
of susceptible subpopulations to total PM &


                                                  1-41

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co-occurring gases of ambient origin and
i.d, key exposure parameters.

Data generated from PM monitoring studies
in Phoenix, Fresno, and Baltimore will be used
to reduce uncertainties on atmospheric PM
concentrations in support of Draft PM Air
Quality Criteria Document.

Reports on (1) role of  host susceptibility
factors, such as compromised cardiopulmonary
systems, on responses to PM exposures and
(2) data on regional deposited dose of inhaled
ultrafine particles.

Report on results from Baltimore
study evaluating the cardiovascular and
immunologies] responses of elderly
individuals to PM.

Delivery of computer model to assess
the effect of spatial variability on human
exposure as manifested by health.

Reports on (1) long-term exposures to PM
and effects on mortality and lung function.

Complete PM longitudinal panel study
data collection and report exposure data.

Report on health effects of concentrated
ambient PM in healthy animals and humans,
in asthmatic and elderly humans, and in
animal models of asthma and respiratory
infection.

Final PM Air Quality Criteria
Document completed.

Report on the effects of concentrated
ambient PM on humans and animals
believed most susceptible to adverse effects
 (e.g., elderly, people with lung disease, or
animal models of such diseases).

Publish report on effects of particulate
matter and volatile organic chemical air
pollutants on  children.

Publish report on the empirical and
theoretical lung deposition dose of
ultrafine, fine, and coarse particles in
elderly and mild asthmatic subjects under
various breathing conditions.
                                   report
30-Sep-2000
data
30-Sep-2000
reports
                                   report



                                   model


                                   manuscript


                                   study
                                   report


                                   final AQCD
                                   report
                                   report
                                   report
                                                  1-42

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Publish report on the toxic effects of
metallic and ultrafine PM constituents on
lung cells and animals, and the molecular
and biochemical mechanisms through
which they occur.                                                               1           report

Publish report on a series of studies of
model and ambient PM effects in animal
models of systemic hypertension, advanced
cardiovascular disease, and chronic
lung disease (asthma, COPD).                                                     1           report

Report on animal and clinical toxicology
studies using Utah Valley paniculate
matter (UVPM) to describe biological
mechanisms that may underlie the
reported epidemiological effects of UVPM.                                         1           report

Longitudinal PM exposure panel
study final report.                                                               1           report

Report on statistical associations of
mortality/morbidity with source
categories and  other alternative
indicators of PM exposure.                                                       1           report

Capstone report on the physical, chemical,
and toxicological characteristics of PM
from heavy oil and coal combustion.
The report provides data on the linkage
between emissions and health effects.                                             1           report

Baseline:    At present, there is substantial evidence from epidemiological studies that increased levels of
            PM are associated with increased frequency of death and disease, especially in the elderly and
            in individuals with cardiopulmonary disease. Children also have been shown to have increased
            illness as PM levels increase.  Our understanding of the biological mechanisms underlying
            these associations, of the identification of components (e.g., organics, metals) or characteristics
            (e.g., size)  of PM producing these effects, and of human exposures to the most important
            components of PM is only now beginning to emerge.  As noted by the National Research
            Council, the EPA research program is well targeted to address these critical knowledge gaps
            and is well integrated with the extensive ambient air monitoring programs managed by State
            and local agencies. The results of the research efforts in 2002 will include development and
            application of new methods for assessing human exposure and testing of toxicity mechanisms
            that will yield an improved scientific basis for setting National Ambient Air Quality Standards
            for PM.

PM Measurement Research

In 2001      Provide new information on particulate matter source emissions, measurements, methods, and
            emissions-based air quality models to guide State Implementation Plan (SIP) development
            under the PM NAAQS.

In 2000     EPA developed particulate matter (PM) measurements, methods, emissions-based air quality
            models, and source emissions and control information to guide State Implementation Plan (SIP)


                                                  1-43

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            development under the current PM NAAQS by completing the products below and other
            research activities.

In 1999     Release of Models-3/CMAQ-Version 2 for PM was completed.

In 1999     Completed four reports on the following topics: 1) wood stove PM emissions (draft); 2) fine
            PM and organic specification of fireplace emissions (draft); 3) fine PM characterization of
            heavy duty diesel vehicle exhaust plumes (draft); and 4) characterizing PM emissions from
            mobile construction equipment.

In 1999     Awarded five (5) grants in June 1999 to establish Particulate Matter (PM) research centers for
            a period of five years, which will advance scientific understanding of the health effects of PM
            in the areas of exposure, dosimetry and modeling, toxicology, and epidemiology.
Performance Measures:
Produce data on the size distribution of
particles emitted from residential wood
combustion (fireplace)

Produce improved receptor models (CMB8
and UNMIX) for measurement of source
category emissions impacts on air quality.

Complete a preliminary evaluation of
Models-3/Community Multi-Scale Air
Quality (CMAQ) for PM, demonstrating its
potential reliability for PM NAAQS
attainment planning

In 1999 establish five airborne paniculate
matter (PM) research centers to conduct
integrated studies on PM exposure,
dosimetry and extrapolation modeling,
toxicology and epidemiology.
Publish a report on the size distribution
of particles emitted from diesel trucks
under various on-road conditions to
improve source inventories for NAAQS
implementation.

Publish peer reviewed
documentation of the PM components
ofModels-3/CMAQ,
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
                                               reports
                                               models
            3Q-Sep-20QO
                                   evaluation
                                               Grant Awards
                        1
                                               report
                                   documentation
Baseline:    The management of paniculate matter involves extensive characterization of current conditions
            and modeling of emissions and atmospheric processes to identify effective control strategies.
            At present, few data are available on atmospheric concentrations and significant uncertainties
            exist in the methods and atmospheric models used to link sources of PM and precursors to
            ambient concentrations. In the area of emissions, there are extensive uncertainties about the total
            PM mass emitted and the size distribution and chemical composition of the primary particles
            emitted from a variety of sources (diesel trucks, residential wood combustion, offroad vehicles,
            construction activities, industrial and energy production facilities). There are also uncertainties
                                                  1-44

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          about hpw best to measure these emissions to account for immediate changes in particles which
          occur in the exhaust plume.  Emissions of precursors (nitrogen oxides, sulfur oxides and
          ammonia) are much better understood with the exception of ammonia. In the area of air quality
          models, the Agency has recently released Models-3 to the environmental monitoring community.
          This modeling system takes advantage of the most recent advances in chemical transport,
          transformation, and fate but also enhancement in computer and computer program technologies.
           New and improved data sets on emissions and models are needed to support effective State
          Implementation Plan development.
Verification and Validation of Performance Measures

Performance Measures: NAAOS
•      Areas Designated for the 1-hour Ozone Standard and Associated Populations
•      Areas Redesignated/ Areas Maintaining Healthful Standards for CO, SO2, NO2, and Lead and
       Associated Populations
•      Areas Designated for PM  10 Standard and Associated Populations

Performance Databases:
•      AIRS —Aerometric Information Retrieval System is comprised of two major subsystems: 1)
       the Air Quality Subsystem (AQS) stores ambient air quality data  (used to determine if
       nonattainment areas have the three years of clean air data needed for redesignation), and 2) the
       Airs Facility Subsystem (AFS) stores emissions and compliance/enforcement information for
       facilities.
•      FREDS—The Findings and Required Elements Data System is used to track progress of states
       and Regions in reviewing and approving the required data elements of the State Implementation
       Plans (SIP). SIPs define what actions a state will take to improve the air quality in areas that do
       not meet national ambient air quality standards

Data Source:
•      AIRS: State and local agency data from State and Local Air Monitoring Stations (SLAMS).
•      FREDS: Data are provided by EPA's Regional offices.

OA/OC Procedures:
•      AIRS: The QA/QC of the  national air monitoring program has several major components: the
      - Data Quality Objective (DQO) process, reference and equivalent methods program, EPA's
       National Performance Audit Program (NPAP), system audits, and network reviews. To ensure
       quality data, the SLAMS are required to meet the following: 1) each site must meet network
       design and  siting criteria; 2) each site must provide adequate QA assessment, control, and
       corrective action functions according to minimum program requirements; 3) all sampling
       methods and equipment must meet EPA reference or equivalent requirements; 4) acceptable
       data validation and recordkeeping procedures must be followed; and 5) data from SLAMS must
       be summarized and reported annually to EPA, Finally, there are system audits that regularly
       review the overall air quality data collection activity for any needed changes or corrections.
•      FREDS: No formal QA/QC procedures.
                                           1-45

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Data Quality Review:
•      AIRS: No external audits have been done in the last 3 years.
•      FREDS: None.

Data LirnjtatiQns:
•      AIRS: Some potential data limitations: 1) incomplete or missing data (e.g., some values may
       be absent due to incomplete reporting, and some values subsequently may be changed due to
       quality assurance activities); 2) inaccuracies due to imprecise measurement and recording (e.g.,
       faulty monitors; air pollution levels measured in the vicinity of a particular monitoring site may
       not be representative of the prevailing air quality of a county or urban area); and 3) inconsistent
       or non-standard  methods  of data  collection and  processing  (e.g.,  non-calibrated and
       non-operational monitors).
•      FREDS: Potential data limitations include incomplete or missing  data from Regions

New/Improved Data or Systems:
•      AIRS:  EPA is in the process of reengineering the AQS to make it a more user friendly,
       Windows-based system. As a result, air quality data will be more easily accessible  via the
       Internet. The current  AFS, which is a mainframe operation,  will be replaced by a new
       ORACLE database mat will also be accessible by the Internet. Both systems will be enhanced
       to include data standards (e.g., latitude/longitude, chemical nomenclature) being developed
       under the  Agency's  Reinventing Environmental  Information  (REI) Initiative.  Facility
       identification standards will be included so that air emission data in our data base can be linked
       with environmental data in other Agency databases for the same facility.
•      FREDS: None
Perfbrmance Measure: Reductions inMobile Source VOC Emissions and Reduction inMobile Source
NOx Emissions

Performance Database: AIRS

Data Source:  AIRS: State and  local agency data from State and Local Air Monitoring Stations
(SLAMS).

OA/OC Procedures:  AIRS: The QA/QC of the national air monitoring program has several  major
components: the Data Quality Objective (DQO) process, reference and equivalent methods program,
the precision and accuracy of the collected data, EPA's National Performance Audit Program (NPAP),
system audits, and network reviews. To ensure quality data, the SLAMS are required to meet the
following: 1) each site must meet network design and siting criteria; 2) each site must provide adequate
QA assessment, control, and corrective action functions according to minimum program requirements;
3) all sampling methods and equipment must meet EPA reference  or equivalent  requirements;
4) acceptable data validation and recordkeeping procedures must be followed; and 5) data from SLAMS
must be summarized and reported  annually to EPA. Finally, there are system audits that regularly
review the overall air quality data collection activity for any needed changes or corrections.

                                           1-46

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Data Quality Review: AIRS: No external audits have been done in the last 3 years,

Data Limitations: AIRS: Some potential data limitations: 1) incomplete or missing data (e.g., some
values may be absent due to incomplete reporting, and some values subsequently may be changed due
to quality assurance activities); 2) inaccuracies due to imprecise measurement and recording (e.g., faulty
monitors; air pollution levels measured in the vicinity of a particular monitoring site may not be
representative of the prevailing air quality of a county or urban area);  and 3) inconsistent or
non-standard methods of data collection and processing (e.g., non-calibrated and non-operational
monitors).

       EPA does make estimates of mobile source emissions, for both past and future years. The most
complete and systematic process for making and recording such estimates is the "Trends" inventory
process executed each year by OAQPS's Emissions, Monitoring, and Analysis Division (EMD). The
Assessment and Modeling Division is the coordinator within the Office of Transportation and Air
Quality for providing EMD information and methods for making the mobile source estimates. In
addition, EMD's contractor(s) obtain some necessary  information directly from other sources, for
example weather data and the Federal Highway Administration's (FHWA) Vehicle Miles  Traveled
(VMT) estimates by state. EMD always creates and publishes the emission inventory estimate for the
most recent historical year, detailed down to the county level and with 31 line items representing mobile
sources. Usually, EMD also creates estimates of emissions in several future years. When the method
for estimating emissions changes significantly, EMD sometimes creates revisions to its older estimates
of emissions in years prior to the most recent year, to  avoid a sudden discontinuity in the apparent
emissions trend. EMD publishes on paper the national emission estimates; county-level estimates are
available electronically.

       It is useful to understand just what mobile source information is updated hi Trends each year.
An input is updated annually only if there is a convenient source of annual data for the input. Generally,
VMT, the mix of VMT by type of vehicles  (FHWA types, not EPA types, however), temperatures,
gasoline properties, and the designs of Inspection/Maintenance (I/M) programs are updated each year.
The age mix of highway vehicles is updated, using state registration data; this captures the effect of fleet
turnover, assuming emission factors for older and newer vehicles are correct. Emission factors for all
mobile sources and activity estimates for non-road sources are changed only when the Office of
Transportation and  Air  Quality  (OTAQ) requests this to be done and is able to provide the new
information in a timely manner.

       The limitations of the  inventory estimates for mobile sources comes from limitations hi the
modeled emission factors in g/mile and also the estimate vehicle miles traveled for each vehicle class.
For non-road emissions, the estimates come from a model using equipment populations,  emission
factors per hour or unit of work, and an estimate of usage. These input data are frequently being revised
with newer data. Any limitations in the input data such  as emission factors (based on emission factor
testing and models predicting overall fleet emission factors such as in g/mile), vehicle miles traveled
(which are derived from Department of Transportation data), and other factors will carry over into
limitations in the emission inventory estimates.
                                            1-47

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New/Improved Data or Systems: AIRS: EPA is in the process of reengineering the AQS subsystem
to make it a more user friendly, Windows-based system. As a result, air quality data will be more easily
accessible via the Internet. The current AFS, which is a mainframe operation, will be replaced by a new
ORACLE database that will also be accessible by the Internet. Both systems will be enhanced to include
data standards  (e.g., latitude/longitude, chemical nomenclature) being developed under the Agency's
Integrated Information Initiative. Facility identification standards will be included so that air emission
data in our data base can be linked with environmental data in other Agency databases for the same
facility.
Performance Measure: Reductions in Mobile Source PMio Emissions and PMzs Emissions

Performance Database: AIRS

Data Source:  AIRS: State and local agency data from State and Local Air Monitoring Stations
(SLAMS).

OA/OC Procedures:  AIRS: The QA/QC of the national air monitoring program has several major
components: the Data Quality Objective (DQO) process, reference and equivalent methods program,
the precision and accuracy of the collected data, EPA's National Performance Audit Program (NPAP),
system audits, and network reviews. To ensure quality data, the SLAMS are required to meet the
following: 1) each site must meet network design and siting criteria; 2) each site must provide adequate
QA assessment, control, and corrective action functions according to minimum program requirements;
3) all sampling methods and  equipment must meet EPA  reference or  equivalent requirements;
4) acceptable data validation and recordkeeping procedures must be followed; and 5) data from SLAMS
must be summarized and reported annually to EPA. Finally, there are system audits that regularly
review the overall air quality data collection activity for any needed changes or corrections.

Data Quality Review: AIRS: No external audits have been done in the last 3 years.

Data Limitations: AIRS: Some potential data limitations: 1) incomplete or missing data (e.g., some
values may be absent due to incomplete reporting, and some values subsequently may be changed due
to quality assurance activities); 2) inaccuracies due to imprecise measurement and recording (e.g., faulty
monitors; air pollution levels measured in the vicinity of a particular monitoring site may not be
representative of the prevailing air quality of a county or urban area);  and 3)  inconsistent or
non-standard  methods of data  collection and processing (e.g., non-calibrated and non-operational
monitors).

       EPA does make estimates of mobile source emissions, for both past and future years. The most
complete and systematic process for making and recording such estimates is the "Trends" inventory
process executed each year by OAQPS's Emissions, Monitoring, and Analysis Division (EMD). The
Assessment and Modeling Division is the coordinator within the Office of Transportation and Air
Quality for providing EMD information  and methods for making the mobile  source estimates. In
addition, EMD's contractor(s)  obtain some necessary  information directly  from other sources, for

                                           1-48

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example weather data and the Federal Highway Administration's (FHWA) Vehicle Miles Traveled
(VMT) estimates by state. EMD always creates and publishes the emission inventory estimate for the
most recent historical year, detailed down to the county level and with 31 line items representing mobile
sources. Usually, EMD also creates estimates of emissions in several future years. When the method
for estimating emissions changes significantly, EMD sometimes creates revisions to its older estimates
of emissions in years prior to the most recent year, to avoid a sudden discontinuity in the apparent
emissions trend. EMD publishes on paper the national emission estimates; county-level estimates are
available electronically.

       It is useful to understand just what mobile source information is updated in Trends each year.
An input is updated annually only if there is a convenient source of annual data for the input. Generally,
VMT, the mix of VMT by type of vehicles (FHWA types, not EPA types, however), temperatures,
gasoline properties, and the designs of Inspection/Maintenance (I/M) programs are updated each year.
The age mix of highway vehicles is updated, using state registration data; this captures the effect of fleet
turnover, assuming emission factors for older and newer vehicles are correct. Emission factors for all
mobile sources and activity estimates for non-road sources are changed only when the Office of
Transportation and Air Quality (OTAQ) requests this to be done and is able to provide the new
information in a timely manner.

       The limitations of the inventory estimates for mobile sources comes from limitations in the
modeled emission factors in g/mile and also the estimate vehicle miles traveled for each vehicle class.
For,non-road emissions, the estimates come from a model using equipment populations, emission
factors per hour or unit of work, and an estimate of usage. These input data are frequently being revised
with newer data. Any limitations in the input data such as emission factors (based on emission factor
testing and models predicting overall fleet emission factors such as in g/mile), vehicle miles traveled
(which are derived from Department of Transportation data), and  other factors will carry over into
limitations in the emission inventory estimates.

New/Improved  Data or Systems:  AIRS:  EPA is in the process of reengineering the AQS subsystem
to make it a more user friendly, Windows-based system. As a result, air quality data will be more easily
accessible via the Internet. The current AFS, which is a mainframe operation,  will be replaced by a new
ORACLE database that will also be accessible by the Internet. Both systems will be enhanced to include
data standards (e.g., latitude/longitude, chemical nomenclature) being developed under the Agency's
Integrated Information Initiative. Facility identification standards will be included  so that air emission
data in our data base can be linked with environmental data in other Agency databases for the same
facility.
Performance Measures:
•      Report on the effects of concentrated ambient PM on humans and animals believed most
       susceptible to adverse effects (e.g., elderly, people with lung disease, or animal models of such
       diseases)
                                           1-49

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•      Report on animal and clinical toxicology studies using Utah Valley particulate matter (UVPM)
       to describe biological mechanisms that may underlie the reported epidemiological effects of
       UVPM

Performance Database:  Not applicable. This performance measure relates to an EPA scientific or
technical product which is not tracked in an environmental database.

Data Source: Agency generated material

OA/QC Procedures: N/A

Data Quality Reviews: As required by the Agency-wide formal peer review policy issued in 1993, and
reaffirmed in 1994 and 1998, all major scientific and technical work products used in Agency decision
making are independently peer reviewed before their use. EPA has implemented a rigorous process of
peer review for both its  in-house and extramural  research programs.  Peer review panels include
scientists and engineers from academia, industry, and other federal agencies.

Data Limitations: N/A

New/Improved Data or Systems: N/A

       Research

Performance Measures:
•      Report on the effects of concentrated ambient  PM on humans and animals believed most
       susceptible to adverse effects (e.g., elderly, people with lung disease, or animal models of such
       diseases)
•      Report on animal and clinical toxicology studies using Utah Valley particulate matter (UVPM)
       to describe biological mechanisms that may underlie the reported epidemiological effects of
       UVPM

Performance Database:  Not applicable. This performance measure relates to an EPA scientific or
technical product which is not tracked in an environmental database,

Data Source: Agency generated material

OA/OC Procedures: N/A

Data Quality Reviews: As required by the Agency-wide formal peer review policy issued in 1993, and
reaffirmed in 1994 and 1998, all major scientific and technical work products used in Agency decision
making are independently peer reviewed before their use. EPA has implemented a rigorous process of
peer review for both its  in-house and extramural  research programs.  Peer review panels include
scientists and engineers from academia, industry, and other federal agencies.

Data Limitations: N/A

New/Improved Data or Systems: N/A

                                          1-50

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Coordination with Other Agencies

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

       EPA is working  with the National Aeronautics and Space  Administration (NASA) on
technology transfer for  using satellite imagery for pollution assessments and transports. We work with
the Department of the Army, Department of Defense, on advancing emission measurement technology.
We also work with the National Oceanic and Atmospheric Administration (NOAA), Department of
Commerce, for meteorological support for our modeling and monitoring efforts.

       The Department of Energy (DOE) and DOT fund research projects to better understand the size,
source, and causes of mobile source pollution. The DOT's mobile source projects include TRANSIMS
(TRansportation ANalysis and SIMulation System) and other transportation modeling projects; DOE
is funding these projects through the National Renewable Energy Lab.  EPA  also works closely with
the DOE on refinery cost modeling analyses for EPA's clean fuel programs. For mobile sources
program outreach, the Agency is participating in a collaborative effort with DOT's Federal Highway
Administration and the  Federal Transit Administration designed to educate the public about the impacts
of transportation  choices on traffic congestion, air quality and human health.  This community-based
public education  initiative also includes the Centers for Disease Control. In addition, EPA is working
with DOE to identify opportunities in the Clean Cities program.

       Research

       Tropospheric Ozone  Research Program. Other than Criteria Document preparation which is
EPA's responsibility alone, the Agency's core tropospheric ozone research program is coordinated with
the research efforts of others and planned to achieve the most important unmet research needs that draw
upon EPA's expertise.  All exposure and risk management research in this area is coordinated through
the efforts of the North American Consortium for Atmospheric Research in Support of Air Quality
Management (NARSTO), a public/private partnership whose membership  spans  government, the
utilities, industry, and academia throughout Mexico, the United States, and Canada. The remainder
of the EPA tropospheric ozone research program develops the criteria document and research needs
document associated with the review of the tropospheric ozone NAAQS.

       Particulate Matter Research Program.  The National Academy of Sciences PM research plan
serves as the principal  guideline for the Agency's particulate matter (PM) research.  EPA coordinates
with other federal agencies to review ongoing PM research activities and, where appropriate, to re-focus
activities so as to be consistent with the NAS plan.  The EPA has chosen to take a broad-based
                                          1-5.1

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approach to PM research planning and program development which extends participation to the private
sector.

       The PM science planning community has pointed to the need to conduct its health effects,
exposure and monitoring research in close coordination, so that PM toxicology, epidemiology, and
exposure research are each done in direct combination with the other two. They have stressed that none
of the three should be planned and carried out on its own.  EPA will continue  to focus on such
coordination and pursue a number of avenues to achieve public/private coordination and cooperation
including: (1) playing a lead role in coordinating all federal agency research on PM health, exposure,
and atmospheric processes under the Air Quality Research Subcommittee of the President's Committee
on Environment and Natural Resources (CENR/AQRS); (2) creating an open inventory of all public
and private ongoing PM research; and (3) completing an (3RD Research Strategy for PM which will
benefit all organizations engaged in PM related research.

       One key opportunity for coordination of research related to standards implementation is through
expansion ofNARSTO, which has expanded its mission to include PM-related efforts. Complementary
Federal/private coordination of effects-related research  is under development, including that of the
CENR/AQRS, and is being closely coordinated with the NARSTO expansion.
Statutory Authorities

Clean Air Act  (42U.S.C.7401-7671q)

•Motor Vehicle Information and Cost Savings Act and Alternative Motor Fuels Act of 1988 (AFMA)

National Highway System Designation Act
                                          1-52

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                             Environmental Protection Agency

               FY 2002 Annual Performance Plan and Congressional Justification

                                        Clean Air
Objective #2:  Reduce Risk from Air Toxics

      By FY 2020, eliminate unacceptable risks of cancer and other significant health problems from
air toxic emissions for at least 95 percent of the population, with particular attention to children and
other sensitive sub-populations, and substantially reduce or eliminate adverse effects on our natural
environment. By FY 2010, the tribes and EPA will have the information and tools to characterize and
assess trends in air toxics in Indian country.

                                   Resource Summary
                                   (Dollars in thousands)

Reduce Air Toxics Risk
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 1999
Enacted
$89,966.2
$46,345.0
$21,377.1
$22,244.1
371.5
FY 2000
Actual
$94,748.6
$42,487.7
$22,864.0
$29,396.9
412.0
FY 2001
Enacted
$112,272.7
$56,274.6
$26,121.1
$29,877.0
379.5
FY 2002
Request
$109,247.2
$54,832.9
$22,811.2
$31,603.1
365.3
Key Programs
(Dollars in thousands)

FY1999
Enacted
Air, State, Local and Tribal Assistance Grants: $22,244. 1
Other Air Grants
Air Toxics Research
EMPACT
Hazardous Air Pollutants
Rent, Utilities and Security
$19,507.0
$171.7
$45,256.0
$0.0
FY 2000
Enacted
$29,053.7
$18,121.7
$0.0
$42,805.3
$847.7
FY2001
Enacted
$29,877.0
$22,238.7
$309.7
$52,044.2
$4,288.9
FY2002
Request
$31,603.1
$18,924.4
$0.0
$50,786.5
$4,414.0
                                           1-54

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FY1999 FY2000 FY2001 FY2002
Enacted Enacted Enacted Request
Administrative Services
Regional Management
$0.0
$0.0
$821.9
$64.5
$736.9
$68.7
$638.2
$80.0
FY 2002 Request

       Toxic air pollutants pose significant risks to public health by causing cancer and other serious
health problems such as reproductive disorders, birth defects, and damage to the nervous system.
Available data from U.S. cities indicate predicted increased lifetime cancer risks from air toxics may
be on the order  of 1 in 10,000.  People who live near certain major industrial plants may face even
higher cancer risks  from air toxics.

       The Clean Air Act Amendments of 1990 list 188 hazardous air pollutants (HAPs) that are
emitted from a  variety of sources, including mobile sources, stationary sources, and area sources.
Emission rates vary across sources and by locale. For example, the 1996 National Toxics Inventory
indicates that mobile sources account for approximately 45 percent of major air toxic emissions in
urban areas, with point and area sources making up the remaining 55 percent. For several air toxics
(e.g., benzene,  1,3-butadiene, formaldehyde, acetaldehyde, and diesel particulate matter), mobile
sources may contribute from 50 to70 percent of the total inventory.

       The 1990 Amendments contain a variety of provisions that address toxic air pollutants from all
categories of sources. Title II of the Amendments calls on EPA to develop standards to control
hazardous air pollutants from motor vehicles and vehicle fuels. Vehicle and fuel standards must reflect
the greatest degree of emission control that is technologically feasible, taking into account cost, noise,
energy, and safety  factors. Title III of the Amendments, which contains major stationary and area
source requirements, lists the 188 HAPs and requires EPA to develop standards for major stationary
sources of these pollutants.  Eight years  after promulgating these Maximum Achievable Control
Technology (MACT) standards, EPA must evaluate the residual risk posed by these sources and revise
the standards, if needed, to provide an ample margin of safety to protect public health or the
environment.

       Title III  of the Amendments also requires EPA to develop a national urban air toxics strategy
to ensure achievement of statutorily mandated cancer and non-cancer risk reduction goals, to identify
at least 30 of the most hazardous ah- pollutants found in the largest number of urban areas, to develop
MACT or Generally Available Control Technology (GACT) standards for area sources that emit those
30+ pollutants, and to encourage and work with state and local air pollution programs to  reduce risks
in urban areas.  In addition, the Act requires EPA, through the Great Waters Program,  to study the
effect of air toxics on ecosystems, particularly on important water bodies. Finally, Title HI mandates
control of air toxics from combustion sources and analysis of emissions from steam-powered utilities.

       To carry out Clean Air Act requirements, EPA developed an air toxics program comprised of
four key areas: 1) the development of source-specific and sector-based standards; 2) national, regional,


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and community-based initiatives to focus on multi-media and cumulative risks; 3) National Scale Air
Toxics Assessment (NATA) activities; and; 4) education and outreach.

      In carrying out the air toxics program, EPA is now moving from the first phase of the program,
developing technology-based standards, to the second phase, using arisk-based, multi-media approach.
The second phase focuses on urban areas and large water bodies to address the risk that remains after
the first-phase controls are in place. In this second phase, the Agency will:

•     Monitor and characterize the air toxics problem and identify the sources of the most toxic
      chemicals that are transported through the air and affect cumulative exposure, particularly in
      urban areas and major water bodies; and,

»     Continue to implement strategies to reduce health and ecological risks from air toxics, targeting
      urban areas and major water bodies where exposure to air toxics is the greatest.

Characterizing Air Toxics

      In FY 2002, EPA will continue to develop and apply assessment tools, develop regulations and
guidance,  and  implement programs to reduce toxics risk to the public.  EPA is now completing
development of the information and tools to broadly characterize the air toxics problem on a national
scale and measure progress hi improving public health and reducing environmental impacts. These
efforts will allow the Agency to better characterize the risks from air toxics and to establish a baseline
for measuring risk in carrying out the Government Performance and Results Act (GPRA).  For FY
2002, EPA will continue to invest in improved and innovative monitoring and modeling, emissions
inventories, and risk assessment tools to allow better characterization of urban and local scale problems
and to address multi-media issues and multi-pathway exposures.

      For example, the EPA is building on existing state, Tribal, and local efforts to create a national
monitoring and inventory program that better characterizes public exposures to hazardous air pollution.
In general, existing monitoring efforts measure concentrations  only for a limited number of toxic
compounds and only at limited locations.  EPA is working with states, tribes and local agencies to
expand the air  toxics monitoring program in urban areas and around major water bodies in order to
better characterize air toxics; establish a centralized database on toxic compounds in urban areas
including air, water, and solid waste; and update and improve the toxics emission inventories. EPA, in
conjunction with the Department of Defense (DOD) and the Department of Energy (DOE), will
continue to evaluate and advance the development of new and improved continuous source monitoring
technology for emissions of air toxics.

       EPA also will refine ongoing work with urban risk models to better estimate the  human
exposure to air toxics through various media and the risk to the public resulting from this exposure.
As a first step, EPA has used a national-scale air quality model, the Assessment System for Population
Exposure Nationwide (ASPEN), developed as part of the Cumulative Exposure Project (CEP), as part
of the Agency's efforts to better characterize the air toxics problem. The CEP  estimated 1990 outdoor
concentrations of toxic air pollutants across the entire country for all source categories (e.g., cars, large
stationary sources, and smaller sources).  The National Scale Air Toxics Assessment (NATA) uses the
ASPEN model based on an updated and more  detailed emission inventory; evaluates the model with
expanded  ambient monitoring information; and integrates an exposure model, the Hazardous Air

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Pollutant Exposure Model (HAPEM), to better assess the public health effects.  The application of
ASPEN and HAPEM  provides a basis for evaluating the effectiveness of the nation's air toxics
programs. In response to direction from Congress,'EPA is developing plans to conduct and publish an
uncertainty and variability analysis for the National Scale Air Toxics Assessment (NATA). As part of
a preliminary analysis, EPA plans to develop a comprehensive plan for the analysis, recommend short-
term approaches for an initial assessment of uncertainty and variability, and to implement the short-term
approach to accompany the public release of NATA (scheduled for the summer 2001). Based on the
preliminary assessment, a comprehensive analysis will be initiated (with completion in FY 2002) that
includes stakeholder and peer scientific review.

       Through the increased data collection efforts on air toxics underway, EPA also will be focusing
on local hot spots and providing support in environmental justice issues. The Agency will evaluate and
improve local-scale model efforts to support local evaluations and try to make them more resource
efficient.  The EPA also plans to model air deposition emissions on a national scale using REMSAD
(Regulatory Modeling System for Aerosols and Deposition). The output from this assessment will be
used to provide information to other programs, including states, which can then use the information in
evaluating options for air toxic emissions reductions. The plan will also be used to identify national
regulatory solutions to the air deposition problem.

       In FY 2002, EPA will make further progress in linking release and exposure information from
the various media programs to estimate multi-media toxics exposure and to develop cross^media
strategies to more effectively reduce urban exposures to toxic emissions. EPA will continue to identify
patterns in exposures to air toxics to better coordinate approaches for reducing exposure.

       The Agency also will continue to evaluate health testing results and protocols from the motor
fuels industry to increase information on public health risks. The Fuels and Fuel Additives Registration
(FFAR) program will provide for the review and screening of potential toxic  substances prior to
introduction into motor vehicle fuel supplies.   The  FFAR program will continue involving
approximately 2,000 fuel manufacturers, 3,000 gasoline and diesel fuels registrations and 6,000 additive
registrations. Approximately 10,000 registration reports will be submitted. EPA will_ continue fuel
additive health testing activities for  Methylcyelopentadienyl Manganese Tricarbonyl (MMT) and
Methyl Tertiary-Butyl Ether (MTBE).

       In support of EPA regulatory efforts under Title II of the Act, the Agency will continue to assess
the need for and the feasibility of controlling emissions of unregulated toxic air pollutants associated
with motor vehicles and fuels. In FY 2001, EPA finalized a rule to address emissions of air toxics from
mobile sources. This program identified 21 mobile source air toxics and established new gasoline toxic
emission performance standards. The list of mobile source air toxics includes several volatile organic
compounds and metals, as well as diesel particulate matter plus diesel emission organic gases. The rule
also evaluated the effectiveness of existing mobile source emission control programs in reducing
highway emissions of the identified mobile source toxics.  The analysis showed that existing programs
that reduce ozone and particulate matter (PM), including the reformulated gasoline program, national
low emission vehicle program, emission standards for passenger vehicles and gasoline sulfur control
requirements (Tier  2), and the 2007 heavy-duty  vehicle standards and diesel fuel sulfur control
requirements, are expected to yield significant reductions of mobile source air toxics. However, the
Agency also recognizes that additional research and evaluation are needed to fully understand the extent
of the mobile source air toxics problem. Thus, the rule also established a Technical Analysis Plan to

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continue to conduct research and analysis on mobile source air toxics.  Based on the results of that
research, EPA may do a future rulemaking, to be completed no later than July 1,2004, in which EPA
will revisit the feasibility and need for additional controls for nonroad and highway engines and
vehicles and their fuels. In FY 2002 to prepare for this review, EPA will be gathering emissions data,
conducting exposure analyses, and evaluating the need for additional control. As part of our efforts,
EPA will also be incorporating toxics emissions data into the mobile source models.

Reducing Emissions and Risk from Stationary and Mobile Sources

       Under Title III of the Clean Air Act, EPA has completed all of the two-, four-, and seven-year
MACT standards.  Through January 2001, the Agency has proposed 20  10-year standards and
promulgated two (of the total 58 standards covering 94 source categories). The estimated emission
reductions from the rules already promulgated are over 1.5 million tons per year. Once all of the 10-
year standards are promulgated, the Agency estimates an additional 500,000 tons of emission will be
reduced per year.

       In F Y 2002, EPA will focus its efforts on completing the remaining 10-year MACT standards.
These include a standard covering plywood and composite wood products with facilities in 41 states,
reciprocating internal combustion engines with over 30,000 facilities; a standard covering over 10,000
municipal landfills; and a standard for miscellaneous organic hazardous air pollutants which covers 23
different source categories and is expected to reduce air toxic emissions by over 100,000 tons annually.

       In developing the remaining 10-year MACT standards,  EPA will continue to streamline the
standard-setting process by building on experience from earlier standards and by providing greater
flexibility for states and tribes that want to achieve the emission reductions, but in ways that are
different from those proposed by EPA.  For instance, the EPA will promulgate a generic MACT rule
that covers carbon black production, cyanide chemical manufacturing, ethylene processes, and spandex
production. By combining these four source categories into one standard, EPA eliminates the potential
for duplicative or conflicting air emission control requirements, and assures consistency of the  air
emission control requirements for similar emission points,

       While the work on developing MACT standards will be substantially completed in FY 2002,
there will still be future work on implementing, delegating, and  addressing issues such as process
changes which may result in amendments to promulgated rules. The EPA believes that Federal
standards for controlling emissions of hazardous air pollutants from area and major stationary sources
can be most effectively  implemented  by states, tribes, and  local agencies.  EPA delegates  its
implementation  authority and  provides tools and  guidance to ensure smooth and consistent
implementation. EPA will publish guidance, provide support in issue resolution, and conduct outreach
activities to help sources comply. EPA will use emissions testing and, where feasible, continuous
emission monitoring to measure compliance with MACT and other air toxics standards.  EPA also will
develop capabilities for greater community right-to-know access (e.g., using the Internet) to data
regarding air toxics.

       EPA will, as required by the Clean Air Act Amendments of 1990,  continue  the extensive
residual risk analyses for already promulgated MACT standards to determine if additional standards
are necessary to reduce the remaining risks from these sources. These analyses will require significant
source testing to measure the emissions post-MACT standards and will also require extensive work to

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determine exposures. These additional standards will protect the public health by reducing the number
of people exposed to unhealthfal levels of hazardous air pollutants and prevent adverse environmental
effects.

      In addition to these other major source standards, as described in the December 2000 Regulatory
Finding on the Emissions of Hazardous Air Pollutants from Electric Utility Steam Generating Units,
EPA will continue the development of an electric utilities regulation  to be proposed in 2003. Also,
Section  129 of the Clean  Air Act requires the establishment of performance standards for four
categories of waste incinerators. These categories include: municipal waste combustors, medical waste
incinerators, industrial and commercial waste incinerators, and other solid waste incinerators. The
Federal  Plans for small municipal waste combustors and for commercial and industrial solid waste
incinerators (CISWIs) are scheduled for proposal in 2001, with the finals planned for FY 2002.

      The Integrated Urban Air Toxics Strategy, released in 1999, identified the  hazardous  air
pollutants that pose the  greatest threat in  the largest number of urban areas and the area source
categories that emit these pollutants. EPA  must assure that 90 percent of air toxic emissions from
urban area sources are subject to regulation. The strategy  contains a schedule of activities  to:
substantially reduce noncancer health risk;  reduce cancer incidence by 75 percent;  focus  on
disproportionate risk; reduce mobile source  emissions contributions;  and encourage state, local, and
Tribal programs to develop strategies for their communities.   In FY 2002, EPA will continue to
develop the  state, local,  and Tribal component of the strategy, as well as community-based urban
assessments and the sharing of data. The Agency will continue to reassess the area source category list
and begin development of urban area source standards.  Area source standards will be developed  for
hazardous air pollutants judged to pose the greatest threat to public health in the largest number of
urban areas.

      The EPA will  continue its  efforts  to address and prevent adverse effects of atmospheric
deposition of toxics and nitrogen compounds in the Great Waters.  In  FY 2002, EPA will continue to
work with the Office of Water, the Office of Research and Development, and others to develop and
support multi-media regulatory approaches to reduce risks, including enhancing technical tools for EPA
and states to use to assess cross-media transport of pollutants, and facilitating state, tribal, and regional
deposition reduction strategies. In FY 2002, EPA will continue to implement and revise as needed  the
air/water interface workplan. This workplan will include modeling atmospheric deposition emissions
on a national  level, examining the rules  or activities in place to address impairment caused  by
atmospheric deposition,  and determining what, if any, additional actions are necessary to address
impairment caused by atmospheric deposition.

       The EPA will continue an initiative begun in 2001 on concentrated animal feeding operations
(CAFOs) to characterize  the industry, identify appropriate sources and control practices, and estimate
air emissions.

       As directed in the 2001 Appropriation Report, $1.5 million was allocated in 2001 to upgrade
the RACT/BACT/LAER Clearinghouse (RBLC)  database system and to populate that database with
all determinations from the past 10 years. When completed, this effort will make the RBLC database
a user-friendly and useful database for states and stakeholders to acquire information on emission
control  technologies.  To ensure the upgrades are  consistent with the needs of the states  and
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stakeholders, EPA has planned open meetings with state, industry and environmental representatives
to discuss the enhancements needed before making changes to the system.

       EPA also will continue providing guidance in the implementation of the low sulfur gasoline rule
and  for Phase II of the reformulated gasoline (RFG) program. EPA will begin establishing sulfur
baselines for all U.S. gasoline refiners and importers, and producing a new reporting system for the
gasoline sulfur reduction program. The RFG program reduces toxic emissions by 22 percent from  1990
levels.

       EPA also will implement its toxic control programs for mobile sources through existing engine
certification, compliance, and fuel quality requirements related to emissions standards that also control
toxics.   Under these  requirements,  engine/vehicle manufacturers are required to certify any
engine/vehicle entered into commerce in the United States as meeting the emission limits set by EPA.
Fuel refineries demonstrate  compliance by submitting survey  data to EPA.  These implementation
requirements can be supplemented by  state and local action in the form of vehicle inspection and
maintenance programs and local fuel testing.

       Finally, as part of its  reinvention efforts, the Agency will continue to investigate opportunities
for coordinated data gathering and ndemaking efforts considering releases across media and pollution
prevention  opportunities.   EPA  will bring together ongoing  efforts  such as the  Persistent
Bioaccumulative Toxics (PBT) program, and continue to develop integrated strategies to reduce toxics
for major area and mobile sources.

       Research

       EPA estimates that about 2.7 million tons of toxic chemicals are emitted into the air annually,
and that sites in the U.S. that emit, or have the potential to emit, more than 10 tons per year, number
in the thousands. Volatile organic compound (VOC) emissions  account for a significant amount of all
air toxics. Mobile source emissions have been estimated to account for a significant portion of the
national VOC emissions.  In addition,  data on the relative  concentrations of a number of air toxics
indoors and outdoors suggest that the contribution of indoor sources is also significant. Taken as a
whole for all major sources emitting air toxics, the ecological and human health effects are of national
and even international dimensions. While individuals living near emission sites are most exposed to
elevated concentrations of these chemicals,  air toxics exposures may also affect the general population.

       In FY 2002, the Agency's Air Toxics research program will begin to implement the Air Toxics
Research Strategy currently being completed, which will support the Agency's National Air Toxics
Assessments (NATA) program. Efforts will include health effects, exposure, risk assessment, and risk
management research. Specific research activities hi each of these areas are described in more detail
below.

       Emissions characterization research will improve techniques to characterize hazardous air
pollutant (HAP) emissions  from outdoor and indoor sources. Studies  will be conducted to refine
estimates of toxic emissions from all classes of highway vehicles including how these emissions change
under various vehicle operation modes (modal-based emissions models), and to improve emission
factors and the temporal and spatial resolution of HAPs from small dispersed area sources. Additional
studies will: develop an improved understanding of chemical reactions between toxic pollutants in the

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indoor environment; understand the factors that influence how HAPs penetrate indoors; and identify
better methods and models to quantify sources of these indoor HAP emissions.  Research  is also
planned for FY 2002 to further develop techniques to measure toxic air pollutant emissions on a
continuous basis from industrial and combustion sources.

       Health effects research planned for FY 2002 will quantitatively characterize dose-response and
health  effects of air toxics through development of biomarkers, determination of exposure-dose
response relationships, development of modes of action, and development of physiologically-based
pharmacokinetic models. The range of non-cancer health effects of high priority air toxics (and their
mixtures, including VOCs and mobile source-related pollutants) will be determined under various
exposure scenarios. Synergistic or additive effects of mixtures and non-linearity in the dose-response
at environmental exposures for polycyclic aromatic hydrocarbons cancer risks will be explored.  Health
effects methodology work will focus on high priority urban and mobile source air toxics (to include fuel
and fuel additives).

       Exposure research will focus on four major areas in F Y 2002: mobile source emissions, air qual-
ity modeling  of hazardous air pollutants (HAPs), the air chemistry of HAPs, and human exposure
measurements and modeling. These four research areas play a critical role in improving the underlying
science of the NATA program.  Mobile  source emissions characterization research will provide
important information to help characterize the emissions from new and in-use vehicles which can then
be used to improve the air toxics emissions inventories used at the front end of the assessment process.
Research in air quality modeling will include the expansion of the Models3/Community Multiscale Air
Quality (CMAQ) modeling system to include specific air toxics and the continued development of
neighborhood scale modeling capabilities  within Models3/CMAQ to support urban and local scale
assessments.  To improve the fate and transport component of EPA's air quality models, air chemistry
research will characterize  the lifetime and fate of the  33  urban  air toxics pollutants through the
development  of air chemistry modules for these pollutants. Finally,  a critical piece of the  NATA
process is to estimate actual human exposure to air toxics. This research will combine modeling and
measurement efforts to provide tools and information to estimate human exposure to air toxics with
greater certainty.

       Assessment activities planned for FY 2002 will derive cancer unit risk and chronic and acute
non-cancer reference values, as well as assist in the development of test rules to obtain missing data hi
order to assess risk to healthy and susceptible populations exposed to area, major, mobile, and indoor
air sources. Cancer and non-cancer dose-response assessment methodologies will also be refined to
reduce uncertainty in human health risk assessments. Testing data from fuel and fuel additives will be
reviewed and assessments developed.

       Risk management activities will include a modest effort to identify and develop pollution
prevention alternatives for ambient area and indoor sources.  All of the information generated through
this research will support future NATA assessment activities. Emissions data will be Incorporated into
multi-media human exposure models and air quality models used to evaluate potential implementation
strategies.  Information on risk management options will, under the NATA framework, support
development  and implementation of future voluntary  efforts  and  regulatory programs to  reduce
exposure to air toxic compounds.
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       In FY 2002, the Air Toxics research program will also include technical support activities.
These will predominantly consist of providing guidance to other EPA offices and federal agencies;
improving risk assessment guidance;  and providing consultation and technical support for hazard
identification, endpoint identification, risk assessment,  and other regulatory needs for stationary,
mobile, and indoor sources.
FY 2002 Change from FY 2001 Enacted Budget

EPM

•      (-$2,030,300) This reduction reflects that resources have been decreased for MACT standard
       development since EPA plans to have all the 10-year standards proposed and completed in FY
       2002. Some resources have been reprogrammed from MACT development for modeling and
       emission inventory efforts  to characterize air toxics risk and exposure and for residual risk
       assessments on implemented MACT standards. In addition, resources were reduced for the one
       year effort to ensure all stakeholders have the latest information about air pollution control
       technologies and full access to RACT/BACT/LEAR Clearinghouse for Control Technologies.

       (-$309,700) This reduction reflects an elimination of the EMPACT program.

•      (+$978,000) This increase reflects an increase in workforce costs.

       Research

S&T

       (-$3,161,700) The FY 2002 Request is $3,161,700 belowthe FY 2001  Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.
       (+$1,726,100) This increase will support the air toxics modeling network and state and local
       efforts to reduce air toxics emissions.
Annual Performance Goals and Performance Measures

Reduce Air Toxic Emissions

In 2002    Air toxics emissions nationwide from stationary and mobile sources combined will be reduced
          by 5% from 2001 (for a cumulative reduction of 40% from the 1993 level of 4.3 million tons per
          year.)

In 2001    Air toxics emissions nationwide from stationary and mobile sources combined will be reduced
          by 5% from 2000 (for a cumulative reduction of 35% from the 1993 level of 4.3 million tons per
          year.)


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In 2000    End-of-year FY 2000 data will be available in late 2004 to verify that air toxics emissions
           nationwide from stationary and mobile sources combined will be reduced by 3% from 1999 (for
           a cumulative reduction of 30% from the 1993 level of 4.3 million tons.)

In 1999    Air toxics emissions nationwide from stationary and mobile sources combined were reduced by
           12%  from 1998 (for a cumulative reduction of 27% from the 1993 level of 4.3 million tons.)
Performance Measures:
Combined Stationary and Mobile
Source Reductions in Air Toxics Emissions
FY 1999
Actuals
12
FY2000     FY2001    FY 2002
Estimate     Estimate    Request
                                  percent
Baseline:    In 1993, the last year before the MACT standards and mobile source regulations developed
            under the Clean Air Act were implemented, stationary and mobile sources emitted 4.3 million
            tons of air toxics. Air toxics emission data are revised every three years to generate inventories
            for the National Toxics Inventory.  Reductions are estimated from regulatory controls in the
            years between the three year updates.
Promulgate Technology Based Standards

In 2002      Propose 7 and promulgate 3 0 technology based standards for control of hazardous air pollutants
            for the 10 year bin.

In 2001      Propose 27 technology based standards for control of hazardous air pollutants for the 10 year
            bin.

In 2000      EPA promulgated 3 MACT standards and proposed 8 MACT standards, exceeding its target for
            promulgating standards but not reaching its target for MACT standards proposed.
In 1999     Promulgated 16 MACT Standards for 26 source categories.
Performance Measures:
Number of MACT Standards Promulgated

Promulgate 12 MACT Standards for
24 source categories

Federal Register Publication of Final
MACT Standards

Number of proposed MACT standards.
FY 1999
Actuals
FY 2000
Actuals
FY2001    FY2002
Estimate    Request
16
                        10

                        27
                       30

                       7
                       sources


                       sources


                       notices

                       proposed
Baseline:    Following passage of the Clean Air Act Amendments, EPA identified 174 source categories for
            which MACT standards were to be promulgated.  This became the  baseline for MACT
            standards.
Reduce Risk of Cancer from Air Toxics

In 2002     Reduce risk of cancer incidence by 25-35% (from 1990 levels) from stationary source emissions.

Performance Measures:                       FY 1999    FY2000    FY2001    FY2002
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Cancer Risk Reduced
                                Actuals     Actuals     Estimate    Request

                                                                   25-35       < Percent
Baseline;
Research
Cancer risk reduction is based on emission reductions from 1990 levels.  The baseline is
calculated from the 1996 National Toxics Inventory of emissions using population-  and
toxicity-weighting for each county.
Human Exposure and Health Effects Methods

In 2002     Provide new methods to estimate human exposure and health effects from high priority urban
            air toxics, and complete  health assessments for the highest priority hazardous air pollutants
            including fuel/fuel additives to support national air toxics assessments.

In 2001     Provide new information and methods to estimate human exposure and health effects from high
            priority urban air toxics, and complete health assessments for the highest priority hazardous air
            pollutants, including fuel/fuel additives.

In 2000     EPA provided methods to estimate human exposure and health effects from high priority urban
            air toxics, and completed health assessments for the highest priority hazardous air pollutants
            (including fuel/fuel additives and vinyl chloride).

In 1999     Two reports were completed on pharmocokinetic models for cross-species and cross-pollutant
            extrapolation and extrapolation across concentration and time to support health risk assessment
            for acute exposures.

In 1999     Oral and inhalation non-cancer assessments were delayed but will be submitted for consensus
            review in FY 2001.

In 1999     Dose-response assessments for dichloropropene,  cadmium,  EGBE, and  acetonitrile were
            completed in FY 1999.  The  fifth assessment, for vinyl  chloride,  was delayed and will be
            completed hi FY 2000.  This delay will not have an impact on  achievement of the strategic
            objective.
Performance Measures:
Complete four toxicological reviews and
assessments (RiC, RfD, cancer unit risks)
of high priority to the Air Program.

Benchmark dose software available
for public use.

Benzene RfD and RfC, Diesel, 1-3
Butadine Mobile Source Assessments
Produce process and framework for
incorporating Acute Reference
Exposure (ARE) values into IRIS

Submit for Agency consensus review three
toxicological reviews and assessments
(RfC, RfD, cancer unit risks) of high
priority to the Air Program.
                                FY1999    FY2000     FY2001    FY2002
                                Actuals     Actuals      Estimate    Request
                                                                               assessments
                                31-Oct-1999
                                30-Sep-2001
                                            30-Sep-2000
framework
                                                                               assessments
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Report on extrapolation across
concentration and time to support health
risk assessment for acute ex

Validation of a physiologically-based
pharmacokinetic model for neurotoxic
air toxics, including animal and human data.

Complete for external review three draft
toxicological reviews and assessments of
high priority to the Air Program to include
fuel/fuel additives.

Publish interdisciplinary cross-organization
strategy for developing health effects data to
address the high priority research needs for
high priority air toxics.

Develop for external review four draft
toxicological reviews/assessments of
high priority to the Air Program.
                                                reports
                                                model validat'n
                                                reviews
                                                strategy
                                                assessments
Baseline:    There is a tremendous amount of uncertainty associated with the potential health risks, both
            cancer and non-cancer, and the levels of exposures that result from air toxics emissions. Current
            programmatic estimates of the health impact of air toxics are highly uncertain and generally
            assume  chronic exposures; effects to susceptible populations and from mixtures have not been
            evaluated. Furthermore, exposure-dose-response relationships for effects from inhalation have
            not been developed for most urban HAPs. Relevant human exposure scenarios and levels have
            not been determined due to limitations in ambient and micro-environmental air monitoring
            methods and data.  Research planned for FY2002 will  develop methods to quantitatively
            characterize dose-response and health effects of air toxics; combine micro-environmental and
            ambient air toxics monitoring  methods and modeling  tools for  personal  to  urban  scale
            assessments; and develop assessment methodologies and derive cancer unit risk and chronic and
            acute non-cancer reference values for high priority urban air toxics such as acrolein and MTBE.
Air Quality Model Incorporating Air Toxics

In 2002     Improve emissions information and advance the development of air quality models for air toxics,
            focusing on those identified under the urban air toxics strategy and on mobile sources.

In 2001     Develop (1) an air qualify model incorporating air toxics as their air chemistry and emissions
            become known and (2) source emissions and control information for both mobile and stationary
            sources to guide cost-effective risk management

In 2000     EPA developed an air quality model incorporating air toxics and source emissions and control
            information for both mobile and stationary sources to guide cost-effective risk management
            options by completing the products below and other research activities.

In 1999     A preliminary version of the urban scale Models-3/Toxics Model  for a community-based human
            exposure assessment for air toxics was scheduled to be completed in October 1999.
Performance Measures:
 Complete four toxicological reviews
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
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and assessments (RfC, RfD, cancer unit
risks) of high priority to the Air Program       4                                           assessments

Begin evaluation of the recently dev. urban
scale Models-3/Toxics Model, to be used
for community-based human exposure
assessment for air toxics, using data sets for
mercury and semi-volatile compounds.                    30-Sep-2000                      evaluation

Complete operational evaluation of
Models-3/CMAQ for mercury.                                     1                     evaluation

Synthesis document summarizing air toxic
emissions data from open burning of
various materials to assess commonalities
between sources and develop methodologies
for estimating emissions.                                                     1          report

Baseline:    Mobile, major, urban, and indoor air sources all contribute significantly to the national air toxics
           problem, although accurate emissions data (especially at the temporal and spatial distributions
           needed) remains absent due to the large number of air toxics, the ranges of their concentrations,
           and the myriad sources.  Data on the relative concentrations of a number of indoor and outdoor
           air toxics suggest that the contribution of indoor sources is significant.  Research in air toxics
           emissions characterization and air quality modeling will develop improved techniques to
           characterize hazardous  air pollutant emissions.  These techniques will be used to better
           understand the relative contribution of specific sources to actual human exposure, and identify
           innovative low-cost approaches to control or prevent HAP emissions. The ModelsS/Community
           Multiscale Air Quality (CMAQ) modeling system is also being expanded to include specific air
           toxics and neighborhood scale modeling capabilities within Models3/CMAQ to support urban
           and local scale assessments.
Verification and Validation of Performance Measures

Performance Measure: Combined Stationary and Mobile Source Reductions in Air Toxics Emissions

Performance Database: National  Toxics Inventory (Nil)

Data Source:  The first NTI (for base year 1993) includes emissions information for 188 hazardous air
pollutants from more than 900 stationary sources. It is based on data collected during the development
of Maximum Achievable Control Technology (MACT) standards, state and local data, Toxic Release
Inventory (TRI) data, and emissions estimates using accepted emission inventory methodologies. The
1996 NTI contains facility-specific estimates and will be used  as input to National Air Toxics
Assessment (NATA) modeling. (ASPEN, a dispersion model, contributes to NATA modeling.) The
primary source of data in the 1996 NTI is state and local data. The 1996 state and local facility data are
supplemented with data collected during the development of the MACT standards and TRI data. The
NTI includes emissions from large industrial or point sources, smaller stationary area sources, and
mobile sources.

QA/QC Procedures:  Since the NTI is primarily a database designed to house information from other
primary sources, most of the QA/QC efforts have been to identify duplicate data from the different data
sources and to supplement missing data. There has been no effort to validate information collected

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from other databases, but a significant effort is underway to determine the best primary source data
when a discrepancy among data sources is found. Mobile source data are validated by using speeiated
test data from the mobile source emission factor program, along with peer-reviewed models which
estimate national tons for the relevant year.

Data Quality Review: Each base year's NTI has been reviewed by internal EPA staff, state and local
agencies, and industry.

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

New/Improved Data or Systems: The 1996 NTI is a significant improvement over the 1993 NTI because
of the added facility-level detail (e.g., stack heights, latitude/longitude locations, etc.), making it useful
for dispersion model input. Future inventories (1999,2002, etc.) are expected to improve significantly
because of increased interest in the NTIs by regulatory agencies, environmental interests, and industry,
and the greater potential for modeling and trends analysis.
Coordination with Other Agencies

          EPA coordinates with many other agencies and organizations to achieve reductions of risk
from air toxics.   EPA works with the Department of Energy (DOE) on several fuels programs. Other
programs targeted towards the reduction of air toxics from mobile sources are coordinated with the
Department of Transportation (DOT), These partnerships can involve policy assessments and toxic
emission reduction strategies in different regions of the country. Other Federal agency partnerships
have been created to share costs for researching health effects and collecting ambient air toxic
monitoring data.

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

          EPA also works closely with the DOE on refinery cost modeling analyses for EPA's clean
fuel programs. For mobile sources program outreach, the Agency is participating in a collaborative
effort with DOT's Federal Highway Administration (FHWA) and Federal Transit Administration (FT A)
designed to educate the public about the impacts of transportation choices on traffic congestion, air
quality and public health. This community-based public education initiative also includes the Centers
for Disease Control (CDC). In addition, EPA  is working with DOE to identify opportunities in the
Clean Cities program.
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          The Agency is continuing to work closely with the Office of Safety Health Administration
(OSHA) to coordinate the development of EPA and OSHA standards, where necessary, to ensure that
MACT standards designed  to reduce air toxic emissions do not  inadvertently increase worker
exposures.  EPA also works closely with other health agencies such as the  CDC and the National
Institute of Environmental Health Sciences on health risk characterization.  To assess atmospheric
deposition and characterize ecological effects, EPA works with the National Oceanic and Atmospheric
Administration (NOAA) and the U.S. Fish and Wildlife Service.

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

          Research

          EPA's air toxics research is coordinated  with  other  federal  agencies through the
Subcommittee on Air Quality Research of the Committee on Environment  and Natural Resources
Research (CENR). The CENR is charged with  improving coordination among Federal agencies
involved in environmental and natural resources research and development and developing a Federal
environment and natural resources research and development strategy that responds to national and
international issues. In addition, the Agency works with other federal agencies, such as the National
Institute of Environmental Health Sciences (NIEHS) and the National Toxicology Program (NTP) on
an ad hoc basis to identify and coordinate research needs.
Statutory Authorities

Clean Air Act Title I, Part A and Part D, Subparts 3 and 5 (42 U.S.C. 7401-7431,7512-7512a, 7514-
7514a) (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. 7651-766If)

Research: Clean Air Act (CAA) (42 U.S.C. 7401-7671q)
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                              Environmental Protection Agency

              FY 2002 Annual Performance Plan and Congressional Justification

                                           Clean Air
Objective #3:  Acid Rain

          By F Y 2005, reduce ambient nitrates and total nitrogen deposition to 1990 levels. By 2010,
reduce ambient sulfates and total sulfur deposition by up to 30 percent from 1990 levels.

                                      Resource Summary
                                      (Dollars in thousands)
                                           FY1999       FY2000      FY2001       FY2002
                                           Enacted        Actual       Enacted       Request
 Reduce Acid Rain.
$18,136.2      $19,249.3      $21,789.8     $18,910.5
     Environmental Program & Management
$10,526.5      $10,556.9     $13,489.2     $13,919.3
     Science & Technology
 $4,002.1       $4,394.8      $4,240.6       $3,991.2
     State and Tribal Assistance Grants
 $3,607.6       $4,297.6      $4,060.0      $1,000.0
        Total Workyears
     86.6
77.5
96.6
 93.8
                                        Key Programs
                                     (Dollars in thousands)
                                               FY 1999
                                               Enacted
              FY 2000      FY 2001      FY 2002
              Enacted      Enacted      Request
 Air, State, Local and Tribal Assistance Grants: Other      $3,607.6      $4,069.0     $4,060.0     $1,000.0
 Air Grants
 Acid Rain -Program Implementation

 Acid Rain -CASTNet

 Administrative Services

 Regional Management
   $10,309.4     $10,606.3     $12,248.7    $12,581.3

    $4,000.0      $4,000.0      $3,991.2     $3,991.2

       $0.0       $208.2        $297.8      $201.6
       $0.0
  $7.3
 $7.8
                                              1-69
$9.1

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FY 2002 Request

          Emissions of sulfur dioxide (SO2, mostly from power plants and other industrial sources)
and nitrogen oxides (NOX, mostly from power plants and motor vehicles) 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 rain also accelerates the decay of building materials and paints, and
contributes to degradation of irreplaceable cultural objects  such as statues and sculptures.  NOX
emissions are also a major precursor of ozone, which affects human health and damages crops, forests,
and materials.  NOX deposition also contributes to eutrophication of coastal  waters,  such as the
Chesapeake Bay and Tampa Bay. Additionally, before falling to earth, SO2 and NOX gases form fine
particles that could affect human health by contributing to premature mortality, chronic bronchitis, and
other respiratory problems. The fine particles also contribute to reduced visibility, including national
parks.

          The Acid Rain Program, authorized under Title IV of the Clean Air Act Amendments of
1990, is primarily focused on SO2 and NOX emissions from electric utilities, and has numerous statutory
deadlines.  Reductions in NOX emissions from mobile sources are required under Title II of the Clean
Air Act. The U.S. is also committed to reductions in S02 and NOX emissions under the US-Canada Air
Quality  Agreement  of 1991.
EPA's  Acid  Rain  Program
uses market-based approaches
to achieve these   emission
reductions.    The  Program
provides affected sources with
flexibility  to  meet required
emission  reductions at the
lowest cost (both to industry
                                                  SO2 Emissions
                                             Title IV - Utility
                               SO2 and NOX Emissions Reductions
and government).  The  SO2
component features tradeable
units called "allowances" (one
allowance  authorizes  the
emission of one ton of SO2),
accurate  and   verifiable
measurements  of emissions,
and a cap on total emissions.
The   Acid  Rain   Program
continues to be recognized as a
model  for   flexible   and
effective regulation both in the.
U.S. and abroad.
                             CO
                             o
                               20
                               15
                            110 -
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                             O
                            'co
                             CO
                            "E
                            ill
5-
0
                                    17.5
                                           16.3
                                                  15.9
                                                                                    I 18.7
           5.7
                                  1980    1985    1990
                         1995   2000
                           Year
2005   2010
          Major program activities include measurement, quality assurance, and tracking of SO2, NOX,
and CO2 emissions, as recorded by Continuous Emissions Monitors (CEMs) or equivalent continuous
monitoring methods at more than 2,500 electric utility units; conducting field audits and certifying
emissions monitors;  operation of an SO2 allowance tracking system to record transfers of emission
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allowances between different parties; reconciliation of emissions and allowances for all affected sources
to ensure compliance; and processing of permit actions.

          Phase I of the Program began in F Y1995, requiring SO2 reductions from approximately 400
electric utility units. Approximately 250 of these units were also required to make NOX reductions
beginning in FY 1996. Phase II of the Program began in FY 2000 and requires reductions in SO2
emissions from more than 2,500 electric utility units (gas-fired, oil-fired, and coal-fired) and reductions
in year-round NOX emissions from approximately 1,000 coal-fired units.   Despite this increase in
affected units, the number of  quarterly  emission reports  processed (8,000 per year) remained-
unchanged because  Phase II electric utility units were already required to report their emissions.
However, there is more than a four-fold increase in the number of units for which EPA will conduct
an annual reconciliation of allowances with measured emissions. In addition, there is likely to be a
significant increase in S02 allowance trading activities in Phase II of the program. (EPA processed
more than 1,000 private allowance transfers per year in Phase I, and expects this number to triple during
Phase II .)  This increased workload will be handled through  improved information resource
management and through improved program operation and efficiency from rule revisions. The Program
has launched a multi-year effort to re-engineer the information technology support structure for the
Allowance and Emissions Tracking Systems.  System modernization is needed to handle increased
emissions reporting and allowance trading activities, to improve public access, and to provide timely
exchange of data with state partners. Much of the current system is based on FY 1992 programming
technology which has become outdated and cumbersome.

          In addition to these  operational activities, the Acid Rain  Program is responsible  for
managing the Clean Air Status and Trends Network (CASTNet), a dry deposition monitoring network,
as well as providing critical operational support for the National Atmospheric Deposition Program
(NADP), a wet deposition network.  These monitoring efforts play a crucial role hi the Program's
ongoing assessment  activities, including reporting outcomes under the Government Performance and
Results Act  (GPRA), and  fulfilling assessment responsibilities under the US-Canada Air Quality
Agreement and Title IX of the Clean Air Act Amendments.  In  addition, the Program provides
analytical support for the National Acid Precipitation Assessment Program (NAPAP), which was
reauthorized under the Clean Air Act Amendments of 1990.  NAPAP  coordinates Federal acid
deposition research  and monitoring of emissions, acidic depositions, and their  effects, including
assessing the costs and benefits of Title TV. In FY 2001, the Acid Rain Program will complete work
on NAPAP's 2000 Integrated Assessment Report and continue analyzing the costs and benefits of the
Program for inclusion in NAPAP's 2004 Integrated Assessment Report. In addition, the Program will
initiate an integrated assessment of its effectiveness in addressing visibility, fine particle, and ozone
impacts resulting from Phase II operations for the Ozone Transport Region.

          States also carry out activities to implement the SO, and NOX portions of the Acid Rain
Program, including certification and recertification of CEMs, field audits of CEMs, and permitting
activities. Some States have elected to use their acid rain grant funds for monitoring activities to help
assess the effectiveness of the program in reducing environmental risks.

          When fully implemented in FY 2010, the S02 reductions alone under Title IV will provide
$50 billion (1997 dollars) in health benefits (mostly from an estimated reduction in premature mortality
of  9,000 cases per  year) and $1 billion in additional benefits due to unproved visibility, from an

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expected 30 percent improvement in visibility at national parks in the eastern United States. The Acid
Rain Program will also produce significant benefits in terms of lowered surface water acidity and less
damage to materials and high elevation forests and materials.  Nevertheless, after full implementation
of the program, significant residual risks will remain to human health, ecological systems, and quality
of life.
                     Sulfate Deposition in Acid Rain Reduced (kg/ha)
    <5   8   11  H  17   20   23  26  29   32  >35    <5   8   11   H   17  20  23   26   29   32  >35
                       '  • ~
          1989-91
1995-97
          These maps represent snapshots of wet sulfate deposition over time.  As illustrated in the
          1995-1997 map, following the 1995 implementation of the Acid Rain Program, total sulfur
          deposition fell in a dramatic and unprecedented reduction of up to 25 percent over a large
          area of the Eastern United States.
FY 2002 Change from FY 2001 Enacted Budget

EPM
S&T
          (+$332,600) This increase reflects an increase in workforce costs.
          (-$249,400) The FY 2002 Request is $249,400 below the FY 2001 Enacted Budget level
          due to Congressional earmarks received during the FY 2001 appropriations process which
          are not included in the FY 2002 President's Request.
STAG
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           (-$3,060,000) This reduction reflects a decrease in grant funding to support the Acid Rain
           program. The state programs will now be supported through permit fees collected by the
           states.  Working with the states, the grant funding  formerly dedicated to the Acid Rain
           program will now be reprogrammed to support air toxics and  the NAAQS programs.
           Remaining acid rain funding will focus on environmental assessment efforts by the states.
Annual Performance Goals and Performance Measures

Reduce SO2 Emissions

In 2002    Maintain or increase annual SO2 emission reduction of approximately 5 million tons from the
           1980 baseline. Keep annual emissions below level authorized by allowance holdings and make
           progress towards achievement of Year 2010 SO2 emissions cap for utilities.

In 2001     Maintain annual reduction of approximately 5 million tons of S02 emissions from utility sources
           from 1980 baseline. Keep annual emissions below level authorized by allowance holdings and
           make progress towards achievement of Year 2010 SO2 emissions cap.

In 2000    End-of-year FY 2000 data will be available in late 2001 to verify that 5 million tons of SQ2
           emissions from utility sources were reduced from the 1980 baseline.

In 1999    Maintained annual reduction of approximately 5.04 million tons of SO2 emissions from utility
           sources from 1080 baseline.

Performance Measures:                       FY 1999   FY2000    FY2001    FY2002
                                          Actuals    Actuals     Estimate    Request

SO2 Emission Reductions                              On track    5,000,000   5,000,000  tons reduced
Nox Reductions                            30-Oct-2000

Baseline:   Base of comparison for assessing progress on the annual performance goal is the  1980
           emissions baseline. The 1980 SO2 emissions inventory totals 17.5 million tons for electric
           utility sources. This inventory was developed by National Acid Precipitation Assessment
           Program (NAPAP) and used as the basis for reductions in Title IV of the Clean Air Act
           Amendments. This data is also contained in EPA's National Air Pollutant Emissions Trends
           Report. Statutory SO2 emissions cap for year 2010 and later is at 8.95 million tons below 1980
           emissions level. "Allowable SO2 emission level" consists of allowance allocations granted to
           sources each year under several provisions of the Act and additional allowances carried over,
           or banked, from previous years.

Reduce NOx Emissions

In 2002    2 million tons of NOx from coal-fired utility sources will be reduced from levels that would
           have been emitted without implementation of Title IV of the Clean Air Act Amendments.

In 2001    2 million tons of NOx from coal-fired utility sources will be reduced from levels that would
           have been emitted without implementation of Title IV of the Clean Air Act Amendments.

In 2000    End-of-year FY 2000 data will be  available in late 2001 to verify that 2 million tons of NOx
           from coal-fired utility sources were reduced from levels before implementation of Title IV of
           the Clean Air Act Amendments.

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In 1999     Maintained reduction of 420,000 tons on NOx from coal-fired utility sources.

Performance Measures:
NOx Emission Reductions
FY1999    FY2000    FY2001    FY2002
Actuals     Actuals     Estimate    Request

           On track    2,000,000  2,000,000  tons reduced
Baseline:   Base of comparison for assessing progress on this annual performance goal is emissions that
           would have occurred in the absence of Title IV of the Clean Air Act Amendments.  These
           emissions levels are calculated using actual annual heat input and the baseline (uncontrolled)
           NOx emission rates by boiler type from the preamble to the final rule (61 FR 67112, December
           19, 1996).

Reduce Ozone Season NOx Emissions

In 2002     Control NOx emissions during ozone season from participating utility and industrial sources
           to below allowable level authorized by allowances.

In 2001     Control NOx emissions during ozone season from participating utility and industrial sources
           to below allowable level authorized by allowance (approximately 50% reduction from 1990
           baseline).
Performance Measures:
Ozone Season NOx Reductions
FY 1999
Actuals
FY2000
Actuals
FY2001
Estimate
FY2002
Request
                      220,000    220,000
                                   tons reduced
Baseline:   Base of comparison for assessing performance on annual performance goals is the 1990
           emissions baselines adopted in the state rules. The ozone season is 5 months long, May 1 to
           September 30.   "Allowable NOx emissions level" is defined by  the sum of allowance
           allocations authorized by various provisions in enablingstate rules and allowances carried over,
           or banked, from previous years  discounted by the Progressive Flow Control ratio.  An
           allowance authorizes a source to emit one ton of NOx during the ozone season.
Verification and Validation of Performance Measures

Performance Measure:  SO2 and NOX emission reductions

Performance Database:
*          Emissions Tracking System (ETS) [SO2 and NOX emissions collected by Continuous
           Emission Monitoring Systems (CEMS)]
*          CASTNet (dry deposition) and
•          NADP (wet deposition)
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Data Source:
•         ETS, on a quarterly basis, receives hourly measurements of SO2, NOX, volumetric flow,
          CO2, and other emission-related parameters from more than 2,000 units affected by Title
          IV.
•         CASTNet measures particle and gas acidic deposition chemistry. Specifically, CASTNet
          measures  sulfate and  nitrate dry  deposition  and meteorological information at
          approximately 70 active monitoring sites. CASTNet is primarily an eastern, long-term dry
          deposition network funded and operated by EPA/OAR. Database is maintained by OAR.
•         National Atmospheric Deposition Program (NADP) is a national long-term wet deposition
          network that measures precipitation chemistry and provides long-term geographic and
          temporal trends in concentration and deposition of major cations and anions. Specifically,
          NADP provides measurements of sulfate and nitrate wet deposition at approximately 200
          active monitoring sites. EPA, along with several other Federal agencies, states, and other
          private organizations, provides funding and support for NADP.  The NADP  database is
          maintained by the Illinois State Water Survey/University of Illinois.

QA/OC Procedures:
•         Our QA/QC requirements dictate performing a series of quality assurance tests of CEMS
          performance. For these tests, emissions data are collected under highly structured, carefully
          designed testing conditions, which involve either high quality standard reference materials
          or multiple instruments performing simultaneous emission measurements. The resulting
          data are screened and analyzed using a battery of statistical procedures, including one that
          tests for  systematic bias. If the CEMS fails the bias test, indicating a potential  for
          systematic underestimation of emissions, then either the problem must be identified and
          corrected or the data is adjusted to prevent the low bias.
          CASTNet has established data quality objectives and  quality  control procedures  for
          accuracy and precision,
•         NADP has established data quality objectives and quality control procedures for accuracy,
          precision and representativeness. The intended use of these data is to establish spatial and
          temporal trends in wet deposition and precipitation chemistry.

Data Quality Review:
          ETS provides instant feedback to sources in order to identify any data reporting problems.
          EPA staff then conducts data quality review on each quarterly ETS file. In addition, states
          or EPA staff conduct random audits on selected sources' data submission.
•         CASTNet underwent formal Agency peer review by an external Panel.
•         NADP methods of determining wet  deposition values have undergone extensive peer
          review, handled entirely by the NADP housed at the Illinois State Water Survey/ University
          of Illinois. Assessments of changes in NADP methods are developed primarily through
          the academic community and reviewed through the technical literature process.

DataLimitatioiis: None

New/Improved Data or Systems: To improve the spatial resolution of the Network (CASTNet),
additional monitoring sites are needed.
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Coordination with Other Agencies

          EPA participates  with NAPAP, which coordinates Federal acid rain research and
monitoring under the auspices of the National Science and Technology Council Committee on
Environment and Natural Resources. As required by Title IX of the 1990 Clean Air Act Amendments,
NAPAP prepares a biennial report that evaluates the costs, benefits, and effectiveness of the Acid
Deposition Control Program under Title IV of the 1990 Amendments. The NAPAP assessment is a
multi-agency effort requiring cooperation and coordination among EPA, the Department of Energy,
the Department of Agriculture, the Department of the Interior, the National Aeronautics and Space
Administration, and the National Oceanic and Atmospheric Administration.
Statutory Authorities

Clean Air Act Amendments, Title I   (42 U.S.C. 7401 -7514a)

Clean Air Act Amendments, Title IV (42 U.S.C. 7651-7661 f)

Clean Ah- Act Amendments, Title IX (42 U.S.C. 7403-7404)
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Goal 2: Clean and Safe Water

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Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 2: Clean and Safe Water		>	  II-l
       Ensure Safe Drinking Water and Recreational Waters	  11-12
       Protect Watersheds and Aquatic Communities	  11-41
       Reduce Loadings and Air Deposition 	,...	  II-69

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                             Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                   Clean and Safe Water
Strategic Goal: All Americans will have drinking water that is clean and safe to drink. Effective
protection of America's rivers, lakes, wetlands, aquifers, and coastal and ocean waters will sustain
fish, plants, and wildlife, as well as recreational, subsistence, and economic activities. Watersheds
and their aquatic ecosystems will be restored and protected to improve public health, enhance water
quality, reduce flooding, and provide habitat for wildlife.

                                     Resource Summary
                                   (Dollars in thousands)
                                          FY1999       FY2000      FY 2001      FY2002
                                          Enacted       Enacted      Enacted      Request

Goal 02 Clean and Safe Water               $3,426,134.3   $3,625,054.8  $3,675,947.8   $3,213,402.5

Obj. 01 Safe Drinking Water, Fish and         $1,089,314.2   $1,228,123.8  $1,223,716.1   $1,096,096.6
        Recreational Waters

Obj. 02 Protect Watersheds and Aquatic         $355,463.0    $377,216.8    $457,289.8     $406,121.4
        Communities

Obj. 03 Reduce Loadings and Air Deposition    $1,981,357.1   $2,019,714.2  $1,994,941.9   $1,711,184.5

                 Total Workyears                2,627.1        2,391.7       2,715.0       2,694.1
*Fpr proper comparison with the FY 2002 request, the historic data has been converted to be consistent with the new 2000 Strategic Plan structure. Goal and Objective resources for
FY 1999, FY 2000, and FY 2001 may therefore differ from the resources reported in the FY 2001 Annual Plan and Budget and the FY 2000 Annual Report

Background and Context

       Safe and clean water  is needed for drinking, recreation, fishing, maintaining ecosystem
integrity, and commercial uses such as agricultural and industrial production. Our health, economy,
and quality  of life depend on reliable sources of clean and safe water. Waterfowl, fish, and other
aquatic life that live in and on the water, as well as plants, animals, and other life forms in terrestrial
ecosystems are dependent on clean water.

       Contaminated water  can cause  illness  and  even death.   Furthermore, exposure to
contaminated drinking water poses a special risk  to such populations as children, the elderly, and
people with compromised immune  systems.  In 1994, 17 percent of those served by community
water systems were supplied drinking water that violated health standards at least once during the
year. EPA efforts in  subsequent years are targeted to reducing this percentage.

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       While the Nation has made considerable progress over the past 25 years, serious water
pollution problems remain.  The  1998 National Water Quality Inventory Report to Congress
indicates that 12 percent of assessed rivers and streams and 41 percent of assessed lake acres are not
safe for fish consumption; 24 percent of assessed rivers and streams and 20 percent of lake acres are
not safe for recreational activities (e.g, swimming); and 9 percent of assessed rivers and streams and
14 percent of lake acres are not meeting drinking water uses.  Many of the remaining challenges
require a different approach to environmental protection because they are not amenable to traditional
end-of-pipe pollution controls. These problems derive from the activities of people in general. The
challenge for EPA is to encourage people to consider how their day-to-day decisions can affect the
quality of their rivers, streams, lakes, wetlands, and estuaries.
Means and Strategy

       To achieve the nation's clean and safe water goals, EPA will operate under the overarching
watershed approach in carrying out its statutory authorities under both the Safe Drinking Water Act
Amendments (SDWA) of 1996 and the Clean Water Act (CWA).  Protecting watersheds involves
participation by a wide variety of stakeholders, a comprehensive assessment of the condition of the
watershed, and implementation of solutions based on the assessment of conditions and stakeholder
input. Full involvement of stakeholders at all levels of government, the regulated community, and
the public is fundamental to the watershed approach. The watershed approach helps EPA, its Federal
partners, states, tribes, local governments, and other stakeholders to implement tailored solutions and
maximize the benefits gained from the use of increasingly scarce resources.

       EPA will continue to implement the SDWA Amendments of 1996 that chart a new and
challenging course for EPA, states, tribes, and water suppliers. The central provisions of the
Amendments include 1) improving the way that EPA sets drinking water safety standards and
develops regulations that are based  on good science and data, prioritization of effort, sound risk
assessment, and'effective risk management; 2) establishing new prevention approaches, including
provisions for operator certification, capacity development, and source water protection; 3) providing
better information to consumers, including consumer confidence reports; and 4) capitalizing and
managing the Drinking Water State Revolving Fund (DWSRF) program to  assist public water
systems in meeting drinking water standards.

       EPA has increased efforts to provide states and tribes tools and information to assist them
in protecting their residents from health risks associated with contaminated recreational waters and
noncommercially-caught fish.  These tools will help reduce health risks, including risks to sensitive
populations  such as children and subsistence and recreational anglers.  EPA activities include
development of criteria, enhanced fish tissue monitoring, risk assessment, and development offish
and shellfish consumption advisories. For beaches, EPA's three-part strategy is to strengthen beach
standards and testing, improve the scientific basis for beach assessment, and develop methods to
inform the public about beach conditions.  These efforts were strengthened by passage of the


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Beaches Environmental Assessment and Coastal Health (BEACH) Act of 2000 and its emphasis on
development of strong monitoring and notification programs.

      Key to the watershed approach is continuation of EPA-developed scientifically-based water
quality standards and criteria under the CWA. Where water quality standards are not being met,
EPA will work with states and tribes to improve implementation of Total Maximum Daily Load
(TMDL) programs that establish the analytical basis for watershed-based decisions on needed
pollution reductions. EPA will continue to develop and revise national effluent guideline limitations
and standards, capitalize and manage the Clean Water State Revolving Fund (CWSRF) program and
other funding mechanisms, and streamline the National Pollutant Discharge Elimination System
(NPDES) permit program to achieve progress toward attainment of water quality standards and
support implementation of TMDLs in impaired water bodies. The Agency will continue to work on
reducing the NPDES permit backlog, in partnership with states, by targeting permitting activities
toward those facilities posing the greatest risk to the environment.  In addition, the Agency will
continue to expand its training and electronic information activities to improve the efficiency and
effectiveness of the NPDES program. These strategies and activities are particularly important as
the NPDES program faces significant new demands with the implementation of the phase II storm
water rule, and increased focus on concentrated animal feeding operations (CAFOs), combined
sewer overflows (CSOs), and sanitary sewer overflows (SSOs).

      The CWSRF is a significant financial tool for achieving clean and safe water and for helping
to meet  the significant needs for wastewater infrastructure over the next 20 years. This budget
request includes $850 million for the CWSRF. This investment keeps EPA on track with our
commitment to meet the goal for the CWSRF to provide $2 billion average in annual financial
assistance over the long-term even after Federal assistance ends. Total SRF funds available for loans
since 1987, reflecting loan repayments, state match dollars, and other sources of funding, are
approximately $34 billion,  of which $30 billion has been  provided to  communities  as financial
assistance. As of June 2000, $3.4 billion remained available for loans.  For FY 2002, the Agency
requests that state flexibility to address their most critical demands be continued by extending their
authority for limited funds transfers between the CWSRF and DWSRF.

      Core NPDES programs face significant new demands as the Agency continues to emphasize
control of wet weather sources  of pollution, particularly from CSOs and SSOs, to reduce water
quality impairments and achieve designated uses. For FY 2002, the Agency is requesting $450
million  for a  new state sewer overflow control grant program to address CSOs and SSOs as
authorized by the  Consolidated Appropriations Act of 2000. Municipal point sources, including
sewer overflows, result in thousands of discharges of raw sewage each year and are a leading source
of water quality impairment generally.

      EPA is assisting states and tribes to characterize risks, rank priorities, and implement a mix
of voluntary and regulatory approaches through improved state nonpoint source (NPS) management
programs. Working with EPA, states and tribes are strengthening their NPS to ensure that needed
nonpoint source controls are implemented to achieve and maintain beneficial uses of water. States

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will  continue to implement coastal  NFS approved by EPA  and the  National Oceanic and
Atmospheric Administration under the Coastal Zone Act Reauthorization Amendments, and to work
with the U.S.  Department of Agriculture to promote implementation of Farm Bill programs
consistent with state nonpoint source management needs and priorities. EPA will also provide tools
to states to assess and strengthen controls on air deposition sources of nitrogen, mercury, and other
toxics.

       With respect to wetlands, EPA will work with Federal, state, tribal, local, and private sector
partners on protection and community-based restoration of wetlands, and with its Federal partners
to avoid, minimize, and compensate for wetland losses through the C WA Section 404 and Farm Bill
programs.

       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 18.1 million people, use secondary treatment or better.

       EPA will work with states, tribes, municipalities, and the regulated community to ensure that
the Phase II rules for the storm water program are implemented to solve problems caused by sediment
and other pollutants in our waters. EPA will also establish criteria for nutrients (i.e., nitrogen and
phosphorus) so that more states can develop water quality standards that protect waters from harmful
algal blooms such as pfiesteria, dead zones, and fish kills, which develop as a result of an excess of
these nutrients.  EPA will work with states to fund priority watershed projects through the CWSRF
to reduce nonpoint and estuary pollution. The Agency will also work to reduce pollution from
failing septic systems.

       Research

       EPA's research efforts will continue to strengthen the scientific basis for drinking water
standards through the use of improved methods and new data to better evaluate the risks associated
with exposure to chemical and microbial contaminants in drinking water.  To support the Safe
Drinking Water Act (SDWA) and its 1996 Amendments, the Agency's drinking water research will
develop dose-response information on disinfection by-products (DBFs),  waterborne  pathogens,
arsenic and other drinking water contaminants for characterization of potential health risks from
consuming tap water, with a focus on filling key data gaps and developing analytical detection
methods for measuring the occurrence of chemicals and microbial contaminants on the Contaminant
Candidate List (CCL). The Agency will develop and evaluate cost-effective treatment technologies
for removing pathogens from water supplies while minimizing DBP formation, and for maintaining
the quality of treated water hi the distribution system and preventing the intrusion of microbial
contamination.  By reducing uncertainties and improving methods associated with the assessment
and control  of risks  posed  by exposure  to microbial contaminants in drinking water, EPA is
providing the scientific basis necessary to protect human health and ensure that by 2005,95 percent
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of the population served by community water systems will receive water that meets health-based
drinking water standards.

       The research to support the development of ecological criteria includes understanding the
structure and function and characteristics of aquatic systems, and evaluating exposures and effects
of stressors on those systems. Research to develop biological and landscape indicators of ecosystem
condition, sources of impairment, and stressor response/fate and transport models are being
developed to improve risk assessment methods to develop aquatic life, sediment, habitat, and
wildlife criteria, and risk management strategies.  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. This research will facilitate the assessment of
ecological health of the nation's waters, providing water resource managers with a tool for
determining whether their aquatic resources support healthy aquatic communities. The Agency also
will develop cost-effective technologies for managing suspended solids  and sedimentsjwith an
emphasis on identifying innovative in situ solutions.

       EPA will continue to develop diagnostic tools to evaluate human and ecological exposures
to toxic constituents of wet weather flows (combined-sewer overflows (CSOs), sanitary-sewer
overflows (SSOs) and stormwater). These events pose significant 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, especially when they
are and toxic.  These strategies and tools include: (1) new and improved indicator methods to
describe the toxic inputs to watersheds from WWFs; (2) methods to use condition and diagnostic
ecological indicators to evaluate wet weather flow management strategies in preventing degradation
of water and sediments quality by contaminated runoff; (3) methods for diagnosing multiple
stressors in watershed ecosystems; (4) evaluation of low cost watershed best management practices
to evaluate risks associated with various control technologies for wet weather flows. This research
will also develop effective beach evaluation tools necessary to make timely and informed decisions
on beach advisories and closures.
Strategic Objectives and FY2002 Annual Performance Goals

Objective 01: Ensure Safe Drinking Water and Recreational Waters

•      Reduce exposure to contaminated recreation waters by increasing the information available
       to the public and decision-makers.

•      Produce scientific reports to support the development of the next Contaminant Candidate List
       of chemicals and pathogens for potential regulatory action and research. These reports will
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      help ensure that future regulations address the contaminants of greatest public health
      concern.

•     91 percent of the population served by community water systems will receive drinking water
      meeting all health-based standards in effect as of 1994, up from 83% in 1994.

•     85 percent of the population served by community water systems will receive drinking water
      meeting health-based standards promulgated in 1998.

Objective 02:  Protect Watersheds and Aquatic Communities

*     Restore and protect estuaries through the implementation of Comprehensive Conservation
      and Management Plans (CCMPs).

•     Assure that States and Tribes have effective, up-to-date water quality standards programs
      adopted in accordance with the Water Quality Standards regulation and the Water Quality
      Standards program priorities.

•     By FY 2003, Water quality will improve on a watershed basis such that 600 of the Nation's
      2,262 watersheds will have greater than 80 percent of assessed waters meeting all water
      quality standards, up from 500 watersheds in 1998.

Objective 03: Reduce Loadings and Air Deposition

*     Industrial discharges of pollutants to the nation's waters will be significantly reduced through
      implementation of effluent guidelines.

•     Current NPDES permits reduce or eliminate discharges into the nation's waters of (1)
      inadequately treated discharges from municipal and industrial facilities; and (2) pollutants
      from urban storm water, CSOs, and CAFOs.

»     700 projects funded by the Clean Water SRF will initiate operations, including 400 projects
      providing secondary treatment, advanced treatment, CSO correction (treatment), and/or
      storm water treatment. Cumulatively, 7,900 projects will have initiated operations since
      program inception.
Highlights

       So that all Americans have water that is safe to drink, EPA will work to ensure that 91
percent of the population will continue to receive drinking water from systems meeting all health-
based standards in effect as of 1994.  The Agency will  continue to work with the states in
implementing rules required by the 1996 amendments to the SDWA to control for microbial
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contaminants especially Cryptosporidium, disinfectants  and their byproducts, arsenic,  radon,
radionuclides, and other contaminants.  By the end of FY 2002, EPA will have promulgated or
proposed regulations on all the contaminants specifically identified in the 1996 SDWA amendments.
Consequently, primary attention in FY 2002 will be focused on setting standards or issuing
guidance/health advisories for any of the up to five unregulated microbes and chemicals that have
been determined through the FY 2001 Contaminant  Candidate List (CCL) process, to warrant
regulation.  The CCL process, a new provision  in the 1996 SDWA amendments, makes risk
prioritization the dominant factor in selecting contaminants to regulate. EPA, in partnership with
the states, water systems, environmental and public health groups, the scientific community, and the
public, must use three criteria to  determine whether or not to regulate a contaminant, i.e., 1) the
contaminant adversely affects human health; 2) it is known or substantially likely to occur in public
water systems with a frequency and at levels of public health concern; and 3) regulation of the
contaminant presents a significant opportunity for health risk reduction. In addition, the Agency is
continuing to: identify potential  high-risk drinking water contaminants, conduct the necessary
scientific analyses and health risk assessments, collect occurrence data, increase monitoring, and
involve the public in the development of the second Drinking Water CCL that, based  on the
requirements of the 1996 SDWA amendments, must be issued in 2003.

       EPA, in concert with our many partners, is pursuing a comprehensive strategy for assessing
and restoring the Nation's most  impaired watersheds. Fundamental to the Agency's efforts to
conserve and enhance the  Nation's  waters is the management of water quality resources on a
watershed basis, with the full involvement of all stakeholders  including communities, individuals,
businesses, state and local governments, and tribes. States may continue to develop and implement
integrated watershed plans, such as strategies for watershed restoration, in those waters identified
by the states as most in need of restoration. Starting in FY 2000, incremental CWA section 319
funds are only available to states with approved upgraded section 319 programs. EPA will also
encourage, using a watershed approach, the establishment of additional planning  groups or
partnerships to  develop local comprehensive  plans for managing dredged  material  in an
environmentally sound manner (including beneficial use).  EPA will be an active participant in the
development of these plans.

       By 2002, with EPA's support, the National Estuary Program will have restored and protected
an additional 50,000 acres of habitat, including sea grass  and shellfish beds. In 2002, EPA will
continue implementing  the national  assessments regarding the  causes of, and appropriate
management responses to,  harmful algal blooms and other marine pests and diseases (including
implementation of the National Invasive Species Management Plan), and hypoxia. EPA will also
continue working on an agency-specific action plan to implement the Invasive  Species Executive
Order. Finally, EPA will continue  its  assessment of cruise ship discharges  and ballast water
discharges, their  impacts on the environment, and management options for addressing these
discharges.

       A key element of the Agency's effort to achieve its overarching goal of clean and safe water
is the reduction of pollutant discharges from point sources and nonpoint sources.  The NPDES

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program (which includes NPDES permits, urban wet weather, large animal feeding operations,
mining, the pretreatment program for non-domestic wastewater discharges into municipal sanitary
sewers, and biosolids management controls) establishes controls on pollutants discharged from point
sources into waters of the United States.  Key annual performance goals for FY 2002 are to reduce
industrial discharges of toxic pollutants,  nonconventional pollutants, and conventional pollutants.
For FY 2002, the Agency is requesting $450 million to fund a state grant program to address CSO
and SSO problems as authorized by the Consolidated Appropriations Act of 2000. The Consolidated
Appropriations Act of 2000 provides the Agency the ability to better target funds to the states and
communities with the greatest CSO and SSO needs, and to give priority to financially-distressed
communities.  To ensure that all point sources are covered by current permits, EPA has developed
a backlog reduction strategy under which 90 percent of major permittees and 73 percent of minor
permittees will have current permits in place by the close of FY 2002.  EPA will also continue
evaluating  data received from monitoring sites under  the National Marine Debris Monitoring
Program. This program monitors marine debris in an effort to determine sources of the debris, much
of which enters coastal waters through stormwater runoff.

       States report that pollution  from nonpoint sources (NPS)  is the largest cause of water
pollution, with agriculture as a leading cause of impairment in 20 percent of the river miles assessed.
In order to restore and maintain water quality, significant loading reductions from nonpoint sources
must be achieved.  State NPS programs are critical to protecting and restoring the Nation's water
resources.  To achieve reductions in NPS loadings, it is essential for EPA to work with states to
expeditiously implement the nine key program elements in their strengthened state NPS programs.
In addition, EPA will continue to encourage states to  make use of CWSRF and other Federal
resources to finance projects that address polluted runoff.  As of mid-2000, states had invested nearly
$ 1.2 billion in nonpoint source pollution controls through the CWSRF.

       Research

       In  FY 2002, EPA's drinking water research program will conduct research  to reduce
uncertainties and improve methods  associated with the assessment and control of risks posed by
exposure to microbial contaminants in drinking water, with a focus on emerging pathogens listed
on the Contaminant Candidate List (CCL). As required by the SDWA amendments, the first CCL
was published in 1998 and included 9 microbial contaminants in its Research Priorities Category that
require more data before a regulatory determination can be made. There are significant data gaps
with regard to understanding the occurrence of these 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.  The  development of this crucial
information will provide the scientific basis necessary to protect human health and ensure that 95
percent of the population served by community water systems will receive water that meets drinking
water standards.

       Although suspended solids and sediment (non-contaminated) are a natural part of aquatic
ecosystems critical to the energy cycle of the water body as well as the provision  of microhabitatss

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they have become a stressor associated with human activity that adversely affects aquatic habitats.
 In a 1998 EPA Water Quality Inventory, Report to Congress, suspended solids and sediments were
identified among the leading causes of water quality impairment for streams and rivers. As part of
EPA's efforts in FY 2002 to conserve and enhance the nation's waters, the aquatic stressors research
program will initiate  a  suspended solids and sediments research program that will focus on
developing tools which allow for the determination of background levels of sediments and suspended
solids inherent to a region.

       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 sources and non-
point sources. In FY 2002, the beaches research program will continue to develop monitoring and
risk communication alternatives in order to provide water quality managers with tools to make timely
and informed decisions on beach advisories

External Factors

Drinking Water and Source Water

       The SDWA Amendments of 1996 is one  of the first environmental statutes to  modify the
Agency's traditional regulatory approach by encouraging aeonsensus- building process that includes
EPA, the states, and  all other drinking  water stakeholders as partners  in the  development and
implementation of regulations. To date, this extensive collaborative and consensus approach has
improved the Agency's efforts to implement the 1996 SDWA amendments.  The complexity of
identifying appropriate treatment technologies for the contaminants specifically identified in the
amendments  and  determining which contaminants on the  CCL to regulate pose a  continuing
challenge in implementing the 1996 SDWA amendments.

       The adoption of health-based and other programmatic regulations by the states is another
critical factor. Since almost all states have primary enforcement authority (primacy) for drinking
water regulations, the states must  have sufficient staff and resources to work with public water
systems to ensure that systems implement, and comply with, new regulations. To help states with
these efforts, EPA has increased Public Water Systems Supervision grant funding by approximately
60 percent since FY 1993.  In addition, the  use of  state set-asides authorized in the enabling
legislation for the DWSRF combined with required matching funds from the states is  another
significant source of funding for state drinking water implementation activities.  Nevertheless, the
need to preserve DWSRF funding for infrastructure purposes coupled with state hiring  restrictions
could have a significant  impact on implementation efforts.

       The cost of providing safe drinking water —  finding a water supply» treating the water,
delivering the water, and maintaining the system — will continue to be a challenge. EPA's 2001
Drinking Water Needs Survey Report to Congress estimates that drinking water systems will need
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to invest $150.9 billion over a 20 year period to ensure the continued provision of safe drinking
water.

       Full implementation of the Underground Injection Control (UIC) program, including the
Class V rules, depends on state and local participation. Because of the sheer number of the particular
Class V wells (over 600,000), mostly of two types  of shallow injection wells (large capacity
cesspools and motor vehicle waste disposal wells) and the threat they pose to ground water sources
of drinking water, implementation of the overall UIC program could  be affected by resource
constraints at the state  level.  In addition, the Agency has full or partial direct implementation
responsibility for 17 states, the District of Columbia and all tribes.

Fish and Recreational Waters

       The Agency's success in protecting human health from consumption of contaminated fish
or exposure to contaminated recreational waters could be impacted by several major constraints,
including lack of regulatory authority, inability to measure behavior, and lack of state and local
resources.

       The Clean Water Act CWA does not require that states or tribes operate fish advisory or
beach protection programs. The Agency's role is primarily to support them through guidance,
scientific information, and technical assistance. EPA cannot take regulatory action to assure that
states and tribes conform to guidance; therefore, success depends on state/tribal/local commitment
to achieving these goals.

       One way of determining whether we have reduced the consumption of contaminated fish and
shellfish is to find out if people eat the fish they catch from waters where fish advisories have been
issued.  In order to determine whether we have reduced exposure to contaminated recreational
waters, we also need to know if people comply with beach closure notices when they are issued.
Acquiring statistical evidence for such determinations is difficult.

       Without comprehensive, consistent monitoring of all the Nation's waters, we do not know
how many waters should be under advisory or how many beaches should be closed. The resource
demands of implementing a comprehensive monitoring program pose a significant challenge for the
states and could be a mitigating factor for success in this area.

Watersheds and Wetlands

       EPA's efforts to meet our watershed protection objective are predicated on the continuation
and improvement of relationships with our Federal, state, tribal, and local partners.  Because of the
vast geographic scope of water quality and wetlands impairments and the large number of partners
upon whose efforts we depend, we must continue to build strong and lasting relationships with all
stakeholders including communities, individuals, business, state and local governments and tribes.
EPA's ability to meet this objective will depend on the success of regulatory and non-regulatory

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programs and nationwide efforts to provide and use a broad range of policy, planning, and scientific
tools to establish local goals and assess progress.

       Given the interrelations  of the  Federal  government's environmental  protection and
stewardship agencies and programs, Federal resource and protection agencies must work together
to maximize achievements.  Without continued government-wide coordination and commitment,
we may not meet our water quality objectives. This is particularly true for successful enhancement
of State nonpoint source management programs. Starting in FY 2000, as an incentive for states to
upgrade these programs, the incremental Section 319 grant funds over $ 100 million in base funding
have gone only to states with approved upgraded 319 programs. The States will also need to
continue efforts to overcome historical institutional barriers to achieve full implementation of their
coastal nonpoint pollution control programs as required under the Coastal Zone Act Reauthorization
Amendments.

       Success in meeting our wetlands objectives is particularly dependent on the continuing and
enhanced cooperation with the Army Corps of Engineers, who has lead responsibility for wetland
permitting, Fish and Wildlife Service, National Marine Fisheries  Service, Federal Emergency
Management Agency, and the Natural Resources Conservation Service.

       In addition, we must continue to improve our understanding of the environmental baseline
and our ability to track progress against goals, which also depends on external parties.  While the
Index of Watershed Indicators and State 305(b) reporting provide some assessments of water quality,
we will continue to depend upon and provide support to our partners and stakeholders in their efforts
to improve measurement tools and capabilities. EPA is working with States to improve our tracking
and measurement ofNPS load reductions from the C WA Section 319 program. Also, as States adopt
TMDLs, we will have specific targets for point source and NFS load reductions  needed to meet
water quality standards in impaired waters.

Point and Nonpoint Sources

       States and localities are assumed to be  able to continue to raise sufficient  funds  for
construction of necessary wastewater treatment and control facilities to accompany Federal financial
assistance.  In addition states must be able to maintain sufficient programmatic funds to continue to
effectively manage point source programs.

       Clean water goals associated with reduction of pollutant discharges from point sources
through the National Pollutant Discharge Elimination System (NPDES) permitting program rely
heavily on EPA's partnership with states as 44 States are currently authorized to carry out the
NPDES program. EPA will also work with the states to reduce pollution from onsite wastewater
treatment systems (OWTS), including septic systems.  Surveys estimate that about 10 percent of
OWTS nationally are malfunctioning.  EPA is developing guidance to help States  and local
governments design, site, install and manage OWTS to reduce water-related impacts.
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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                  Clean and Safe Water


Objective #1: Ensure Safe Drinking Water and Recreational Waters

       By 2005, protect human health so that 95 percent of the population served by community water
systems will receive  water  that  meets health-based drinking water standards, consumption of
contaminated fish and shellfish will be reduced, and exposure to microbial and other forms of
contamination in waters used for recreation will be reduced.
                                    Resource Summary
                                   (Dollars in thousands)

FY1999
Enacted
Safe Drinking Water, Fish and Recreational $1,089,314.2
Waters
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
$108,751.2
S47.853.5
$932,709.5
860.0
FY2000
Actual
$1,228,123.8
$121,143.8
$49,591.8
$1,057,388.2
755.0
FY2001
Enacted
$1,223,71.6.1
$137,235.4
$56,234.9
$1,030,245.8
887.6
FY2002
Request
$1,096,096.6
$115,251.6
$51,613.3
$929,231.7
874.4
Key Programs
(Dollars in thousands)

FY1999
Enacted
FY2000
Enacted
FY2001
Enacted
FY2002
Request
Drinking Water Regulations

Drinking Water Implementation

UIC Program
$33,926.7     $33,230.5     $34,321.4     $30,398.6

$28,134.2     $29,668.5     $32,149.1     $35,200.6

 $9,412.2      $9,594.9     $10,836.9     $11,199.2
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                                           FY1999      FY2000      FY2001     FY2002
                                           Enacted      Enacted      Enacted     Request
Rural Water Technical Assistance
State PWSS Grants
State Underground Injection Control Grants
Source Water Protection
Drinking Water Consumer Awareness
State Pollution Control Grants (Section 106)
Water Infrasteucture:Drinking Water State Revolving
Fund (DW-SRF)
Safe Drinking Water Research
EMPACT
Project XL
Civil Enforcement
BEACH Grants
Rent, Utilities and Security
Administrative Services
Regional Management
$9,955.0
$93,780.5
$10,500.0
$10,741.3
$1,622.9
$0.0
$775,000.0
$45,734.6
$1,345.6
$390.5
$1.3
$0.0
$0.0
$281.2
$0.0
$10,401.3
$93,305.5
$10,975.0
$10,302.3
$1,537.2
$0.0
$820,000.0
$47,367.6
$0.0
$0.0
$0.0
$0.0
$12,229.7
$2,285.6
$981.0
$11,265.0
$93,100,2
$10,950.9
$10,689.8
$1,462.6
$1,995.6
$823,185.0
$51,501.6
$793.9
$0.0
$0.0
$0.0
$12,624.6
$2,528.9
$1,265.6
$221.5
$93,100.2
$10,950.9
$10,337.2
$2,463.2
$0.0
$823,185.0
$46,994.7
$0.0
$0.0
$0.0
$2,000.0
$15,813.4
$2,314.9
$1,215.0
FY 2002 Request

       The Safe Drinking Water Act (SDWA) is one of the key environmental statutes that protects
public health for all Americans. The four major areas of emphasis in the 1996 SDWA Amendments
are: 1)  improving the way that EPA sets drinking water safety standards and develops regulations
based on sound science and data, prioritization of effort, identification of sensitive subpopulations,
sound risk assessment, and effective risk management; 2) establishing new prevention approaches,
including provisions for operator certification, capacity development, and source water protection; 3)
providing better information to consumers, including consumer confidence reports; and, 4) providing
funding for infrastructure investments for communities through the Drinking Water State Revolving
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Fund (DWSRF). In addition, the 1996 Amendments increase the states' flexibility to focus on public
health-based priorities and to make better use of resources; recognize the problems facing small
systems and establish appropriate cost-effective approaches for such systems; and emphasize the role
of stakeholders and partnerships as a key aspect of an effective national drinking water program.

       In 2002, EPA, states/tribes, and water suppliers will continue to implement the 1996 SDWA
Amendments with the principal purpose of improving and maintaining drinking water safety for the
264 million Americans who get their drinking water from public water systems. Under SDWA, EPA
and the states/tribes are responsible for ensuring that consistently safe drinking water is provided to all
persons served by public water systems.  EPA meets that responsibility by setting drinking water
safety standards and providing technical assistance and other support to states that have primary
enforcement authority (primacy) of drinking water regulations.

       The drinking water regulations issued to date in accordance with requirements in the 1996
SDWA amendments offer significant opportunities  to improve the quality of the nation's drinking
water.  The Stage 1 Disinfectant/ Disinfection Byproducts (D/DBP) and Interim Enhanced Surface
Water Treatment (IBS WT) Rules, promulgated in late 1998, address the greatest risk reduction efforts
for drinking water protection by regulating microbiological contaminants, such as Cryptosporidium,,
and controlling byproducts from disinfectants. These rules also present local water utilities, states, and
EPA with the challenge of successfully adopting and implementing these new rules ina timely fashion
to achieve public health benefits. Because of the crucial state role in drinking water protection, EPA
and the Association of State Drinking Water Administrators (ASDWA), on behalf of all states'
drinking water program managers, began discussions  in 2000 to identify the priority issues that
facilitate or impede the states' ability to exercise primacy for drinking water regulations.  In 2001, an
assessment of each state's capacity and progress in meeting its responsibilities for the new drinking
water regulations was conducted. Both general and state-specific actions were designed and will be
implemented in 2002 to advance program progress and address barriers that are interfering with each
state's  ability to fully meet SDWA goals.  Resources have been redirected to support training,
technical assistance and other measures related to this effort to help assist states/tribes in adopting and
implementing both Stage I D/DBP and IESWT rules as well as the Consumer Confidence Report
(CCR) rule, the Public Notification rule, revisions to  the Lead and Copper rule,  and other rules
expected to be promulgated in 2001.

       Consumers' knowledge about the quality of their drinking water is a key provision of the 1996
SDWA amendments. Promulgated in 1998, the CCR rule, which is implemented by the 54,000+
community water systems (CWSs) nation wide, gives customers of drinking water systems the
information they need to make their own health decisions. In 2002,the Agency expects all CWSs will
continue to issue annual reports to the 264 million Americans they serve. In addition, resources have
been redirected to assist the public in taking an active role in preventing contamination of drinking
water.  EPA will establish a national data layer of delineated source water protection areas and
mechanisms for the public to access this important information.
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       The Agency will continue to directly implement rules in those states and on Indian lands that
do not have primacy for some or all drinking water regulations. The State of Wyoming, the District
of Columbia and all Indian tribes fall into this category.  The Agency will also be carrying out activities
related to the Unregulated Contaminant Monitoring Rule.1

       The Safe Drinking Water Information System (SDWIS) serves as the central repository for data
on both the  states' implementation  of, and compliance with, existing and new drinking  water
regulations. SDWIS is the  primary source of national  information on all SDWA requirements and
provides the  critical database  for the development of regulations, trends analyses,  and public
information. In 2001, EPA focused extensive attention on SDWIS to bring it into alignment with the
expanding needs of its partners, the states, and its internal and external stakeholders.  Beyond cost-
savings benefits, quality data support states and local communities in exercising the flexibility designed
.into the  latest round of drinking water standards. In addition, achievable steps in the intermediate and
longer terms that recognize evolving information needs and technology have been defined. The Agency
redirected $2.4 million in 2002 to support upgrading SDWIS-FED (EPA's federal drinking water
information system) and bring together the architecture of SDWIS-FED and SD WIS-STATE to reduce
problems of data entry.  The Agency will also be implementing a web-enabled version of SDWIS-
STATE. The combination of the enhancement of SDWIS-FED/SDWIS-STATE and the "online"
feature will attract more States to adopt SD WIS-STATE. By the end of 2002,40 states will be using
SD WIS-STATE for data collection, management, and reporting. Redirected resources also provide the
necessary support for information modules on other drinking water programs, such as source water
protection, to be integrated with SDWIS in 2002 to provide a more comprehensive data set with which
to characterize the quality of the nation's drinking water  supplies.

       States will be implementing the guidelines for operator certification2 and recertification to ensure
that owners and operators of public water systems are fully implementing existing and new SDWA
requirements. Also, States will continue to implement their capacity development strategies, focused on
assisting existing water systems, to develop their technical, financial, and managerial capacity. By
September 30,2001, each State must report to the EPA Administrator on the success of their efforts to
help systems that have a history of significant noncompliance build their capacity. States will be
targeting special attention to this subset of systems in 2002. EPA support for the states' implementation
of these programs directly affects public health outcomes  as these activities provide a framework to help
systems comply with drinking water standards.

       The DWSRF was established to provide assistance to public water systems primarily for
financing the cost of infrastructure improvements to facilitate compliance.  The FY 2002 request of
1       In 1998-2001 and continuing in 2002, the Agency has set aside $2,000,000 from the Drinking Water State
Revolving Fund (DWSRF) for the purpose of reimbursing small systems for monitoring under the Unregulated
Contaminants Monitoring Rule (UCMR).
2       As was the case in 1999 ($ 15M) 2000 and 2001 (S30M, respectively), the Agency will set aside resources
from the DWSRF in 2002 (S30M) for grants to states to be used for reimbursing small system operators for the costs
of training and certification, as authorized in section  1419(d)(4) of SDWA.

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$823 million keeps EPA on track with our commitment to meet the goal for the DWSRF to provide
an average of $500 million in annual financial assistance, even after the federal capitalization ends.
All states will continue to administer their DWSRF in 2002.  At least 2,400 community and non-
community drinking water systems will have entered into DWSRF loans since the inception of the
program in 1997. With loans from the DWSRF, as many as 850 drinking water systems will have
completed work to improve and upgrade their pipes, treatment plants, and other components of their
drinking water infrastructure.  Through FY 2001, Congress appropriated $4.4 billion for the DWSRF
program. Through June 30,2000 States had received $2.7 billion in capitalization grants, which when
combined with State match, bond proceeds and other funds provided $3.7 billion in total cumulative
funds available for loans. Through June 30,2000, States had made close to 1,200 loans totaling $2.3
billion and $ 1.4 billion remained available for loans.

       In 2002, EPA has reduced  resources to reflect completion of the 2001 Drinking  Water
Infrastructure Needs Survey Report, required by the 1996 SDWA amendments, that was published
and sent to the Congress in February 200!.  In the FY 2002 the DWSRF allocation will be based on
the results of the Drinking Water Infrastructure Needs Survey. The Agency will begin work on the
next report in 2003.

       Through F Y 2001, Congress has appropriated $4.4 billion for the DWSRF program. EPA has
reserved  $83 million for monitoring of unregulated contaminants and operator certification
reimbursement grants. Through June 30, 2000 State s had received $2.7 billion in capitalization
grants which when combined with state match, bond proceeds and other funds provided $3.7 billion
in total cumulative funds available for loans. Through June 30,2000, States had made close to 1,200
loans totaling $2.3 billion and $1.4 billion remained available for loans. Approximately 74% of the
agreements (38% of dollars) were provided to small water systems that frequently have more difficult
time obtaining affordable  financing.  States also reserved a total of approximately $420 million of
SRF capitalization grants for other activities that support the drinking water program. The Agency's
goal is for the DWSRFs to provide an average of $500 million in annual financial assistance even after
the Federal capitalization grant ends

       The Agency requests continuation of authority provided in the 1996 SDWA Amendments,
which allows states to transfer an amount equal up 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.  Unless extended, the transfer provision expires September 30,2001.

       In 2002, the Agency  will  be involved hi many interrelated standard-setting and regulatory
development efforts.  The Agency will complete the final three rules of the Microbial Disinfection
Byproducts (M/DBP) rule cluster,  as specified in the 1996 SDWA Amendments. The Ground Water
Rule, which is scheduled to be promulgated in November 2001, establishes multiple barriers to protect
against bacteria and viruses in drinking water from ground water sources and will establish a targeted
strategy to identify ground water systems at high risk for fecal contamination. Also hi November
2001, EPA is scheduled to propose a Long-Term 2 Enhanced Surface Water Treatment (LT2ESWT)

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rule and a final Stage 2 Disinfection/Disinfection Byproducts (Stage 2 D/DBP),  Both of these rules
will strengthen and expand the human health protections against DBFs and emerging microbial
pathogens such as  Cryptosporidiwn. Disinfection of drinking water to protect from  microbial
contamination is one of the major public health advances in the 20th century. However, we now know
that the disinfectants themselves can react with naturally-occurring materials in the water to form
unintended  byproducts that may pose health risks, including bladder cancer, and may also cause
reproductive and developmental damage.  The optimal balance will adequately control risks from
pathogens, simultaneously control DBFs to acceptable levels, and ensure that costs of water treatment
are commensurate with public health benefits.

       Second, the Agency will be establishing maximum contaminant levels (MCLs), developing
guidances, or conducting risk assessments for any of the five unregulated contaminants identified from
the Contaminant Candidate List (CCL) published in  1998 that EPA determines require further
regulation. The SDWA Amendments of 1996 require that EPA determine whether or not to regulate
at least five contaminants on the CCL every 5 years starting in 2001. The SDWA requires three
statutory tests must all be met, i.e., 1) the contaminant may have an adverse effect on the health of
persons; 2) the contaminant is known to occur or there is a substantial likelihood that the contaminant
will occur in public water systems with a frequency and at levels of public health concern; and 3) in
the sole judgment of the Administrator, regulation of the  contaminant presents a  meaningful
opportunity for health risk reduction for persons served by public water systems. These three statutory
tests are addressed through research and analyses on such issues as: source water occurrence of
chemical and microbiological contaminants; outbreaks of disease/illnesses for microbiological
occurrence; dose-response relationships for these contaminants of concern, including  projected
impacts on sensitive subpopulations; efficacy of various treatment technologies for removing
contaminants of concern; and, analytical methods to ascertain the presence (at levels of interest) of
these contaminants. EPA is then mandated to develop MCLs for those contaminants that it has
determined warrant further regulation. Implementation of the CCL process is a major priority for the
drinking water program and will set the foundation for all future drinking water standards.

       Another activity underway in 2002 is the development of a second CCL that must be issued in
2003, pursuant to  the 1996 SDWA amendments.  In support of this process, EPA called upon the
National Research Council (NRC) of the National Academy of Sciences to recommend an optional
method for selecting contaminants for inclusion on the second as well as future CCLs. The Agency
will be implementing the NRC's recommendations hi 2002 and will encourage rigorous review by the
scientific community as it proceeds to develop the CCL2,  Funds have been redirected to support
analytical analyses and  methods, the collection and review of occurrence data,  the assessments of
available treatment technologies and the identification of new types of treatment, and other related
tools necessary for this effort.

       Also, as agreed to in the Federal Advisory Committee Act Agreement in Principle (September
2000), EPA is considering development of a  combined Total Coliform Rule^Distribution System
regulation to address health risks associated with drinking water distribution systems. The purpose of
the Total Coliform Rule (TCR) revision is to amend the TCR (promulgated in 1989) based on the

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outcome of the latest 6-year review of the TCR, and is intended to reduce system burden and enhance
the existing TCR requirements. The purpose of the Distribution System portion of the rule is to
protect consumers from health risks associated with the degradation of finished water, which may
occur in the distribution system.

       The 1996 SDWA amendments require EPA to review and revise, if appropriate, all existing
NPDWRs no less frequently than once every six years. Under SDWA, any revisions of drinking water
regulations must maintain or increase the level of public health protection provided; however, EPA
may identify regulatory changes that will streamline or reduce existing requirements without lessening
the level of public health protection.  As a part of this effort, EPA has developed an overall protocol
for conducting each six year review; and particularly for the current review of 66 NPDWRs for
inorganic, synthetic organic, and volatile organic chemicals regulated prior to 1996. In 2001, the
Agency will publish a "Notice of Intent" to explain the process (or protocol) the Agency plans to apply
to the periodic review of existing NPDWRs and to provide the preliminary results of the Agency's
review of the 66 chemicals considered for this review cycle. By the last quarter of 2002, a notice with
the final list of chemical contaminants that will be subject to revision and their regulatory schedule
will be issued.

       Effective drinking water protection has to start with an understanding of the threats to  our
Nation's drinking water sources and a deliberate strategy to prevent their contamination in the first
place. Preventing contamination of source water is a vital aspect of comprehensive protection of
public health and a high priority activity authorized and enhanced in the 1996 SDWA Amendments.
In 2002, not only will all 50  states, the District of Columbia, and Puerto Rico be conducting source
water assessments based on their EPA-approved source water assessment plans, but also at least 6,000
CWSs will have completed their source water assessments. Data from these assessments will help
determine the vulnerability  to contamination of each state's sources of drinking water and  the
consequent risk to human health.  Resources have been redirected to the consumer right-to-know
activity to support the dissemination of information to the public that will facilitate or strengthen local
Source water  protection action. Source  water protection efforts  under SDWA will continue to be
integrated with activities authorized by the CWA to support drinking water protection efforts.

       Protecting source water is the principal focus of a promulgated rule to regulate two types of
shallow, underground injection wells, i.e., large capacity cesspools and motor vehicle waste disposal
wells. EPA will provide technical assistance to the states as they adopt these rules. Through a multi-
partnered effort, the Agency  will work with local government managers of source water protection
programs to identify and ensure that large capacity  cesspools are immediately closed in delineated
source water protection areas  and that motor vehicle disposal waste wells are either closed or
permitted in these same areas. Given that the known inventory of shallow injection wells is over
600,000 nationwide, EPA and  its stakeholders will have examined, by the end of 2001, additional
subsets  of shallow injection wells for which protective measures will need to be developed.
Publication of guidances, best management practices and other informative materials will be under
development  in 2002 for particular subsets of shallow injection wells that are at substantial risk of
endangering sources of drinking water.  The Agency also will continue tojnrovide the states with the


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technical assistance and support they need to maintain primacy for other classes of injection wells, e.g,
hazardous and nonhazardous waste, oil and gas production.  Furthermore, EPA will also continue to
implement, in full or in part, the UIC program for 17 states, the District of Columbia,, and all Tribes.

       Through partnerships with the American Metropolitan Water Agencies (AMWA)and the
American Water Works Association (AWWA), EPA will continue to support activities with water
utilities to ensure  that measures are either in place or being developed to safeguard water supplies
from terrorist and seditious acts.  This is part of a coordinated government-wide effort to combat
terrorism and is consistent with Presidential Decision Directive 63 issued in May of 1998,  Agency
funds will support the modification of a vulnerability assessment methodology, will provide seed
money for the establishment of an Information Sharing and Analysis Center, and will lead to the
development of guidance on remedial plans.

       The Agency will continue to participate in a multi-media effort to identify contaminants that
may disrupt endocrine functions in fish, wildlife, and humans.  The endocrine system plays  an
essential role in human differentiation and growth - developing fetuses and children may be the most
sensitive populations at risk for endocrine disruption. The Food Quality Protection Act (FQPA) and
SDWA direct the  Administrator to conduct studies to examine whether and to what degree, people
might be likely to experience elevated health risks associated with drinking water source contaminants
that have endocrine disrupting potential. EPA will continue to investigate the impacts of potential
endocrine disrupters on human health and the effect of water treatment on hormones.

       Reducing exposure to contaminants in fish and shellfish and through contact in recreational
waters is a top priority for the National Water Program. In 2002, the Agency will continue to work
with its state partners to ensure that they adopt and maintain scientifically-based criteria and consistent
assessment and notification programs to protect recreation, fish consumption, drinking water, and
aquatic life uses.

       About 75% of the Nation's population lives, works, or plays on or near our coastal waters.
Studies indicate that susceptible populations (e.g., children) are the most likely to develop illnesses or
infections after swimming in polluted water. To protect human health, the Agency strives to establish
improved safety guidelines and  pollution  indicators so that local authorities can monitor their
recreational waters in a cost-effective way, close them to public use when necessary, and effectively
communicate risks to the public. For beaches, our three-part goal is to strengthen beach standards and
testing, improve the scientific basis for beach assessment, including accurately determining causes of
beach closures, and develop methods to  inform the public about beach conditions. The Agency will
achieve these goals for coastal and Great Lakes beaches through implementation of the BEACH Act
of 2000.  Implementing the BEACH Act will include awarding grants to state,  local, and Tribal
governments to develop programs for stratified monitoring and public notification.

       Monitoring and risk assessment procedures used by states in their fish and shellfish and beach
contamination advisory programs vary widely. In support of this effort, the Agency will continue a
nationwide survey of toxic residues in fish and complete epidemiological studies in the Great Lakes,

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in cooperation with the Agency for Toxic Substances and Disease Registry (ATSDR), on the health
effects  of  exposure  to  selected  bioaccumulative  toxics.    The  Agency  will  support
monitoring/modeling pilot programs that improve states* ability to predict and address contamination
events at beaches.  In 2002, we will work with states, tribes, and other stakeholders to develop a
stratified monitoring strategy to enable states to  use  statistical sampling methods to assess fish
contamination and recreational waters. The Agency will also evaluate the health risks in seafood
harvested from the Gulf of Mexico and continue to work on alternative risk-based indicators and
methods for skin, respiratory, eye, ear, throat, and gastrointestinal diseases most commonly resulting
from exposure to contaminants at beaches. EPA will also issue up to three human health criteria for
bioaccumulative pollutants.  In addition, the  Agency will continue to  work with stakeholders,
encouraging full involvement at all levels of government, to expand the total proportion of surface
waters assessed for possible fish and beach contamination and to implement fish consumption and
beach contamination advisory programs that are consistent with published national guidance.

       To assure that the public has timely information on the quality of local beaches, the Agency
will continue to expand an Internet-based Federal information source called Beach Watch on beach
advisories and closings across the United States. Working with states, tribes, and local governments,
EPA will continue to expand the database to include information on high-use fresh water teaches and
on the location of CSO outfalls near beaches. We will also add digitized maps of coastal and inland
high-use beaches to the Internet database. The Agency will publish model water quality standards for
beaches that states and tribes can incorporate into their own water quality standards programs and will
conduct workshops on monitoring techniques for states and tribes.

       Research

       Considerable progress has been made over the past 20 years in providing a sound scientific
foundation  for federal regulations to ensure the public health safety of the nation's water supply.
However, research on chemicals and microbial pathogens found in drinking water remains a high
priority for EPA because of the critical need to improve our ability to both assess and manage risks to
the general population as well as to sensitive subpopulations.  The research provisions in the Safe
Drinking Water Act Amendments (SDWA) of 1996 highlight  the importance of this research for
providing a sound scientific basis for regulatory decision making.  The  continued occurrence of
waterborne disease outbreaks demonstrates that contamination of  drinking water with pathogenic
bacteria, viruses, and parasites still poses a public health risk when  treatment is inadequate or when
contamination occurs in  the  distribution system.   There  is also  concern  over the potential
contamination of drinking water  with a. variety of  man-made  (e.g., disinfection by-products,
pesticides)  and naturally occurring (e.g., arsenic) chemicals.

       To  address these needs, EPA has established an integrated, multi-disciplinary research
program in the areas of exposure, health effects, assessment, and risk management This program
directly supports  SDWA priorities, emphasizing research on sensitive subpopulations, adverse
reproductive outcomes and other potential health effects of drinking water contaminants, studies of
disinfection by-products (DBFs), arsenic, and occurrence of waterborne disease in the U.S., and the

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development of improved methods for water treatment and for maintaining water quality in the
distribution system.  An increased emphasis is being placed on the chemicals and microbes on the
Contaminant Candidate List (CCL), a list of over 60 unregulated chemicals and microbes, a number
of which will be selected for future regulatory determinations.

       In  FY 2002, exposure research will continue to focus on developing analytical detection
methods for measuring the occurrence of chemicals and microbes on the CCL. EPA will also apply
and evaluate newly developed measurement methods in the occurrence and /or exposure studies for
arsenic species, DBFs formed from alternative disinfections, and pathogenic microbes

       In addition to drinking water exposure research, EPA's health effects research program in FY
2002 will continue to focus on laboratory, clinical, and field studies of selected high priority DBFs,
arsenic, and contaminants on the CCL. Studies  of priority chemical contaminants on the CCL will
seek to provide either screening level or more detailed information to support CCL determinations.
Research on DBFs will focus on adverse reproductive outcomes, cancer, and other toxic endpoints.
Health effects research will also evaluate the influence of source water quality, treatment technology
and demographic characteristics on waterbome disease in selected communities.

       The risk assessment program utilizes exposure and health effects information to characterize
the magnitude and severity of risks associated with exposures to drinking water contaminants. In F Y
2002, risk assessment research will continue to improve dose-response modeling for cancer and non-
cancer risk associated with exposures to both DBFs (chemicals and complex mixtures) and individual
contaminants on the CCL. In addition, the risk from pathogenic microorganisms that are transmitted
through drinking water will be quantitatively assessed using health effects and exposure information
to address factors such as occurrence, infectious dose, host immunity, and mortality rates.  Particular
emphasis  will  be placed on the development of disease transmission models for human disease
occurrence following exposure to pathogens in drinking water.  The results of this work will be used
to establish Maximum Contaminant Level Goals  (MCLGs) and inform Agency cost-benefit analyses.

       One of the challenges in providing safe drinking water lies in minimizing the risks associated
with DBFs  while controlling microbial pathogens.   In FY 2002, researchers will  continue to
investigate options for optimizing the simultaneous control of microbial contaminants while
minimizing DBF  formation by either removing the precursor material  or  using alternative
disinfectants.

       Research will focus on the two main management options for addressing distribution system
risk: 1) improving distribution system integrity to prevent contaminant intrusion, backflow and cross-
connections from contaminated sources; and 2) improving control of distribution system conditions
(e.g. treatment residuals, disinfectant residual, residence time, mixing, piping materials, corrosion
inhibitors) to minimize formation and release of pathogens and undesirable chemicals. Research will
also include assessing the impact of treatment practices on  the quality of water in the distribution
system network and on the network itself. In addition, a significant part of this research will focus on
detenniriing the treatability  of microbial and chemical contaminants  on the CCL. EPA will also

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continue to investigate strategies for the acceptable control of water treatment residuals containing
arsenic.
FY 2002 Change from FY 2001 Enacted

EPM

       In addition to incorporating drinking water consumer information endeavors into the water goal
pursuant to the Agency's 2000 Strategic Plan revisions (i.e., from Goal 7, Objective 2 to Goal 2,
Objective 1), the drinking water program redirected funds from selected standard setting and regulatory
development activities to three principal areas: 1)  strengthening and  enhancing the efforts of our
partners, the states, to adopt and implement drinking water regulations, 2) improving and expanding the
Safe Drinking Water Information System, and 3) conducting cost-benefit analyses and determining
appropriate treatment technologies for contaminants  identified on the CCL.

•      (-$3,306,500) This change is due to reduced activity in priority microbial contaminants because
       of a short-term diminished workload.  The Ground Water Rule is scheduled to be promulgated
       in November 2001, and the Long Term 2 Enhanced Surface Water Treatment Rule and Stage 2
       Disinfectant Byproducts Rule are scheduled to be proposed in November 2001.

•      (+$1,163,800) This increase was transferred from priority microbial contaminants and source
       water protection to strengthen and enhance states and tribes efforts to implement drinking water
       regulations issued before 1998 and adopting new or revised drinking  water regulations
       promulgated in 1998 - 2001.

•      (+$2389,400)  This  increase  was transferred from priority  microbial  contaminants  for
       implementation of: 1) a multi-step approach to improve the quality and reliability of data in the
       Safe Drinking Water Information System (SDWIS); 2) a web-enabled version of SDWIS-
       STATE, which an estimated 40 states will be using by the end of 2002; and 3) new SDWIS
       modules on other drinking water-related activities such as source water protection, underground
       injection control, and the DWSRF.

•      (+$313,700) This increase was transferred from priority microbial contaminants to augment
       resources related to Contaminant Candidate List (CCL) activities. For the CCL issued in 1998,
       these funds will be used to conduct cost-benefit analyses and determine appropriate treatment
       technologies for contaminants for which regulations, guidances, or risk assessments are to be
       developed in 2002.   Also, these  funds will support a range of activities to assist EPA, in
       collaboration with the scientific and public health communities, in  selecting high risk
       contaminants for inclusion on the second CCL to be published in 2003.
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•      (-$688,000) This decrease was redirected from lower priority source water protection to
       strengthen state and tribal implementation  of drinking water regulations and to support
       dissemination of source water protection information.

•      (+$ 127,900) This increase was transferred from source water protection activities to support the
       dissemination of information to the public that will facilitate or strengthen local source water
       protection action.

•      (-$520,000) This reduction is due to fewer resources required to implement Drinking Water
       State Revolving Fund activities. Reductions are possible due to the completion of the 2001
       Drinking Water Infrastructure Needs Survey.

•      (+$607,800) This increase reflects an increase in workforce costs.

•      (-10.2 FTE) This reduction EPA will decrease FTE in the areas of drinking water regulation
       development and technical assistance provided to states and communities implementing new
       drinking water and underground injection control regulations.

       (-$22,982,200) The FY 2002 Request is $22,982,200 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.

•      (-$793,900; -2.1 FTE)  This reduction reflects elimination of the EMPACT program  since
       environmental data is being made available to the public through other EPA programs.

S&T

*      (+$60,000) This increase reflects an increase in workforce costs..

STAG

•      (-$99,502,400) The FY 2002 Request is $99,502,400 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.

       Research

S&T

•      (+$982,300) This increase reflects an increase in workforce costs.
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        (-$3,891,500) The FY 2002 Request is $3,891,500 below the FY2001 Enacted budget level
        due to Congressional earmarks received during the FY 2001 appropriations process which are
        not included in the FY 2002 President's Request.
        (-$1,059,800, -0.8 FTE) This reduction of lower priority drinking water research, focused on
        the health effects of DBFs, is primarily to offset the payroll cost of living and enrichment
        increases in support of the overall drinking water research program.

Annual Performance Goals and Performance Measures
Safe Drinking Water

In 2002     93 percent of the population served by non-community, non-transient drinking water systems
           will receive drinking water for which no violations of Federally enforceable health standards
           have occurred during the year, up from 88% in 1994.

In 2002     91 percent of the population served by community water systems will receive drinking water
           meeting all health-based standards n effect as of 1994, up from 83% in 1994.

In 2002     85 percent of the population served by community water systems will receive drinking water
           meeting health-based standards promulgated in 1998.

In 2001     Maintain percent of the population served by water systems that will receive drinking water
           meeting all health-based standards that were in effect as of 1994.

In 2000     93% percent of the population served by non-community, non-transient drinking water systems
           which  received drinking  water for which no  violations of any federally-enforceable
           health-based standards occurred during the year.

In 2000     91% of the population served by community drinking water systems received drinking water
           meeting all health-based standards that were in effect as of 1994, up from 83% in 1994.

In 1999     91%ofthepopulationservedby community water systems received drinking water meeting all
           health-based standards in effect as of 1994, up from 83% in 1994.
Performance Measures:
Population served by non-community,
non-transient drinking water systems with
no violations during the year of any federally
enforceable health-based standards that
were in place by 1994.

Population served by community drinking
water systems with no violations during
the year of any federally enforceable
health-based standards that were in
place by 1994.
FY1999
Actuals
FY2000
Actuals
FY2001
Estimate
FY2002
Request
            93
            96
           93
           % population
            91
            91
           91
           % population
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Population served by community water
systems providing drinking water
meeting health-based standards
promulgated in 1998.                                                             85          % population

Baseline:    In 1998, 85% of the population that was served by community water systems and 96% of the
            population served by non-community, non-transient drinking water systems received drinking
            water for which no violations of Federally enforceable health standards had occurred during the
            year.

Drinking Water Systems Operations

In 2002     Protect human health and ensure compliance with  health-based drinking water standards
            through use of the Drinking Water State Revolving Fund (DWSRF).

In 2002     Enhance protection of tribal health by  increasing the percentage of tribal community and
            non-community water systems that are run by certified operators.

In 2001     Protect human  health and ensure compliance with  health-based drinking water standards
            through use of the Drinking Water State Revolving Fund (DWSRF).

In 2001     60% of tribal community and non-transient non-community water systems will have a certified
            operator.

In 2000     528 eligible drinking water systems initiated operations that protect human health and ensure
            compliance with health-based drinking water standards through use of the Drinking Water State
            Revolving Fund (DWSRF).

In 1999     792 community drinking water systems received DWSRF funds that helped ensure that these
            systems provide drinking water that meets all health-based standards.

Performance Measures:                       FY1999    FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

DWSRF assistance agreements to
community and non-community drinking
water systems (cumulative).                                1411        1800        2,400       agreements

Tribal community and non-transient
non-commurtity water systems with a
certified operator.                                                    60%        68%        water systems

CWSs receiving DW SRF funds to help
ensure  that they provide drinking water
that meets all health-based standards            792                                            CWSs

DWSRF projects that have initiated
operations (cumulative).                                  528        700         850         projects

Baseline:    In FY99, there were  792 DWSRF assistance agreements to  community and non-community
            drinking water systems.  In FY 2000, 528 DWSRF projects initiated operations. As of 1999,
            56% of tribal community and non-transient non-community water systems had certified operators.


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New Drinking Water Standards Implementation

In 2002      Protect public health by implementing rules promulgated in FY 1999, FY 2000 & FY 2001 and
            increasing information to consumers through public notification (PN).

In 2001      Protect public health  by implementing rules promulgated  in FY 1999 and  FY 2000 and
            increasing information to consumers through public notification (PN).

Performance Measures:                       FY 1999    FY2000     FY2001    FY2002
                                           Actuals      Actuals      Estimate    Request

States with updated primacy for
lESWTR/Stage 1 DBF.                                                          24

States that have adopted the
lESWTR/Stage 1 DBP.                                               35         38         states

States that have adopted the CCR.                                      35         38         states

States that have adopted the PN.                                        25         28         states

Number of States with updated primacy
for Lead & Copper Rule Revisions.                                                5           states

Number of States that have adopted the
Lead & Copper Rule Revisions.                                                   10         states

States with updated primacy for CCR                                              28         states

States with updated primacy for PN                                                10         states

Baseline:    Estimates for the end of 2000 are: 17 states have adopted the lESWTR/Stage 1 DBP, 17 states
            have adopted the CCR, and 10 states have adopted the PN.
Drinking Water Consumer Confidence Reports

In 2002     Ensure that 100% of community water systems are complying with the Consumer Confidence
            Rule (CCR) by issuing annual consumer confidence reports.

In 2001     Ensure that 100% of community water systems are complying with the Consumer Confidence
            Rule (CCR) by issuing annual consumer confidence reports.

In 2000     53,500 community water systems issued annual consumer confidence reports, reaching a
            population of 252 million people, according to the rule promulgated in August 1998.

In 1999     EPA achieved its goal of partnering with the states in implementation activities to ensure that all
            public water systems  — large, medium  and especially small -- are informed  of both the
            requirements of the consumer confidence report regulation and implementation tools for
            complying with this rule.
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Performance Measures:
Community water systems that will
comply with the regulation to publish
consumer confidence reports

Number of states with which EPA has an
agreement on the most efficient and
effective methods (e.g., training, outreach)
for implementing this rule in each state.

Population served by CWSs that will
comply with the regulation to publish
consumer confidence reports.
FY 1999
Actuals
50
FY2000
Actuals
            53,500
            252.8
FY2001
Estimate
            55,000
FY 2002
Request
            54,000
            CWSs
                                    states
            249 million  264 million  people
Baseline:    Community Water Systems (CWSs) began issuing annual CCRs in 2000, per the Safe Drinking
            Water Act Amendments of 1996.
Rules for High-Risk Contaminants

In 2002     Expand public health protection through:  1) promulgating or proposing new regulations; 2)
            reviewing existing regulations of potentially harmful contaminants; and 3) developing guidance
            and proposed regulations of potentially harmful contaminants.

In 2001     Expand public health protection through: 1) promulgation of new regulations — the Long-term 1
            Enhanced Surface Water Treatment Rule, arsenic, ground water, radionuclides, filter backwash,
            and 2) making determinations whether or not to regulate potentially harmful contaminants from
            the CCL,

In 2000     Radon &  arsenic  regulations -were promulgated/proposed  respectively,  &  5  rules were
            implemented to ensure protection from high-risk contaminants.

In 1999     EPA promulgated the monitoring of unregulated contaminants rule ensuring that the highest risk
            contaminants are identified and managed.

In 1999     EPA  issued and began implementing two protective drinking water standards for high- risk
            contaminants, including disease-causing micro-organisms (Stage I  Disinfection/Disinfection
            Byproducts and Interim Enhanced Surface Water Treatment Rules).

In 1999     EPA developed major risk analyses formicrobial and chemical contaminants to support selection
            of contaminants to be regulated.
Performance Measures:
Risk analyses completed in support of
new regulations.

Regulatory determinations for potentially
harmful contaminants.
FY 1999
Actuals
FY2000
Actuals
FY2001
Estimate
FY2002
Request
                                                analyses
                                                determinations
                                                   11-27

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Standards and associated technical
guidance documents under development
for microbial/chemical contaminants
identified through the CCL process by
August 2001.

Health risk assessments under
development for contaminants identified
through the CCL process by August 2001.

Number of regulations and associated
technical guidance documents promulgated.

Number of regulations and associated
technical guidance documents proposed.

States, including DC and PR, that have
received training and technical assistance
on 4 of the rules that are being implemented.

States submitting primacy revisions
and number with signed extension
agreements for primacy.

Risk analyses for microbial/chemical
contaminants

Regulations promulgated that establish
protective levels for high-risk contaminants

Availability of monitoring of unregulated
contaminants rule.
                                    Up to 5      Reg / Guide
                                    Up to 5      assessments
                                    1/4
                                    2/6
            52
            33/30
1
Regulations promulgated/proposed.                         2            5

Baseline:    By the end of 2000 5 rules were proposed.

Underground Injection Well Management

In 2002     Target implementation of UIC regulations to ensure low risk of contamination to source water
            resources.

In 2001     Through the UIC program, EPA will contribute to the protection of ground water sources of
            drinking water from potential endangerment.

In 2000     Increased protection of ground water resources by bringing 500 Class IV/V wells under specific
            controls through permits or closures and by plugging 3,852 underground injection wells.

In 1999     The draft regulation for UIC Class V wells that will protect groundwater sources  of drinking
            water from potential endangerment was completed and made available for public comment in
            fiscal year 1999. The final rule was published in the Federal Register on December 7,  1999.
Reg / Guide


Reg / Guide



States, DC, PR



states


list


rules


regulation

regulations
                                                   11-28

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In 1999     Data for underground injection wells tested and passed for mechanical integrity is expected to be
            available in March 2000.
Performance Measures:
FY 1999
Actuals
FY2000
Actuals
States that have formally adopted the Class V rule.

Class IV/V wells (by well type) brought under
specific controls through permits or closures.

Issue proposed Phase 2 UIC Class V
regulatory action.

Percentage of Class I, II, & III wells out of
compliance with a permit and/or rules
authorized that are returned to compliance.

Number of large capacity cesspools
closed. (Class V).

Number of motor vehicle disposal
wells closed and/or permitted. (Class V).

Availability of UIC Class V Regulation.         0

Underground injection wells tested and
passed for mechanical integrity                 TBD

States, including DC and PR, that have
received training and technical assistance
on the Class V Rule.

UIC wells plugged as a direct action by the
UIC program or indirectly by another
program working in partnership with UIC
to protect ground water sources of
drinking water.
            500
            50
            3,852
FY2001
Estimate

34
            500
             1,500
FY2002
Request
                                     90
                                     125
                                     325
            states


            wells


            action



            % Wells


            cesspools


            wells

            final reg


            % Wells



            States, DC, PR
                         wells
Baseline:     As of January 2000, no states had adopted the Class V Rule as the Rule was just finalized in
             December 1999.

Source Water Protection

In 2002      Advance States' efforts to protect their surface and ground water resources that are sources of
             drinking water supplies.

In 2001      States and community water systems increase efforts and programs to protect their source water
             resources, including ground water.

In 2000      49 States and 5,000 community water systems increased efforts and programs to protect their
             source water resources including ground water.
                                                    11-29

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In 1999     11,011 community water systems are implementing programs to protect their source water.
Performance Measures:
Population served by community water
systems that are implementing efforts to
protect their source water resources.

CWSs implementing efforts to protect
their source water resources.

Number of community water systems
 (CWSs) that have completed their source
water assessments.

Percent of population served by community.
water systems (CWSs) that have
completed their source water assessments.

Number of community water systems
(CWSs) that are implementing source
water protection programs.

Percent of population served by
community water systems (CWSs) that
are implementing source water
protection programs.

CWSs with ground or surface water
protection programs in place

States that are implementing their
EPA-approved source water protection
assessment programs.
FY 1999
Actuals
FY 2000
Actuals
            30.5
            5,000
FY 2001
Estimate
            36 million
            6,500
11,011
            49
FY2002
Request
                                    6,000
                                    11
                                    2,000
                        people
                        CWSs
                                    CWSs
                                    % population
                                    CWSs
                                                % population
                                    CWSs
                                    states
Baseline:    Currently, there is no baseline because the first full year of implementation of source water
            assessments is not until 2000. EPA has defined implementation as undertaking 4 or more of 5
            stages of source water protection. Nearly 253 million people are estimated to be served by CWSs
            in 2000.

River/Lake Assessments for Fish Consumption

In 2002     8% of the nation's river miles and 17% of nation's lake acres will have been assessed to determine
            if they contain fish and shellfish that should not be eaten or should be eaten in only limited
            quantities.

In 2001     12% of the nation's river miles and 17% of nation's lake  acres will have been assessed to
            determine if they contain fish and shellfish that should not be eaten or should be eaten in only
            limited quantities.
                                                  n-30

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In 2000     7% of the nation's river miles and 16% of the nation's lake acres have been assessed to determine
            if they contain fish and shellfish that should not be eaten or should be eaten in only limited
            quantities.

In 1999     7% of river miles and  15% of lake acres were assessed for the need for fish advisories.
Performance Measures:
Lake acres assessed for the need for fish
advisories and compilation of state-issued
fish consumption advisory methodologies
(cumulative).

States/Tribes monitoring and conducting
assessments based on the national guidance to
establish nationally consistent fish advisories.

River miles assessed for the need for fish
consumption advisories & compilation of
state-issued fish consumption advisory
methodologies (cumulative).
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
16
25
17
40
17
40
FY2002
Request
% lake acres
40
states
                         12
                         8
                         % river miles
 Baseline:   In 1999,7% of the Nation's rivers and 15% of the Nation's lakes were assessed to determine if
            they contained fish that should not be eaten or should be eaten in only limited quantities. In
            September 1999, 25 states/tribes  are monitoring and conducting assessments based on the
            national guidance to establish nationally consistent fish advisories.  As of the  1998 Report to
            Congress on the National Water Quality Inventory, 88% of assessed river and stream miles; 59%
            of assessed lake, reservoir, and pond acres; and 65% of assessed estuary square miles supported
            their designated use for fish consumption. For shell fish consumption, 73% of assessed estuaries
            met this designated use.

Increase Information on Beaches

In 2002     Reduce exposure to contaminated recreation waters by increasing the information available to the
            public and decision-makers.

In 2001     Reduce exposure to contaminated recreation waters by increasing the information available to the
            public and decision-makers.

In 2000     1,981 beaches had monitoring and closure data including 150 digitized maps, available to the
            public through EPA's website.

In 1999     Data entered for 26 states into the public right-to- know database on beach monitoring and
            closure.
Performance Measures:
Beaches for which monitoring and
closure data is available at
http://www.epa.gov/OST/beaches/(cumulative).
FY 1999
Actuals
FY2000
Actuals
             1,891
FY2001
Estimate
            2,200
FY2002
Request
            2,300
            beaches
                                                    11-31

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Fish tissue samples collected (cumulative).                   128                                 samples

States for which data is entered into the
public right-to-know database on beach
monitoring and closures.                       26                                              states

Baseline:    By the end of FY1999,33 states had responded to EPA's first annual survey on state and local
            beach monitoring and closure practices, and EPA made available to the public via the internet
            information on conditions at 1,403 specific beaches.  As of the 1998 Report to Congress on the
            National Water Quality Inventory, 72% of assessed river and stream miles; 80% of assessed lake,
            reservoir, and pond acres; and 91% of assessed estuary square miles met their designated uses for
            recreation.

Research

Safe Drinking Water Research (Microbial)

In 2002     Produce scientific reports to support the development of the next Contaminant Candidate List of
            chemicals and pathogens for potential regulatory action and research.  These reports will help
            ensure that future regulations address the contaminants of greatest public health concern.

In 2001     Reduce uncertainties and improve methods associated with the assessment and control of risks
            posed by exposure to microbial contaminants in drinking water with a focus on the emerging
            pathogens on the CCL.

In 2000     EPA reduced uncertainties and improved methods associated with the evaluation and control of
            risks posed by exposure to microbial contaminants in drinking water by completing the products
            below and other research activities.

In 1999     An interim report on modeling methods for estimating the vulnerability of ground water to viral
            contamination is delayed until the end of FY 2001.

Performance Measures:                        FY 1999    FY2000    FY2001    FY2002
                                             Actuals     Actuals     Estimate    Request

Interim report on modeling methods for
estimating the vulnerability of ground water
to viral contamination.                         30-Sep-2001

Report on waterbome disease
outbreaks in the U.S.                                       1                                   report

Evaluation of Method 1622 for
Cryptosporidium for use in the Information
Collection Rule.                                           1                                   evaluation

Describe different technologies for
cost/effective control of Cryptosporidium
oocysts and DBFs.                                        30-Sep-2002            description

Report on occurrence of CCL-related
pathogens in source and drinking  water,


                                                    11-32

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such as mycobacterium and Aeromonas
                                                                                 report
Publish screening treatability studies for at
least two microbes on the Candidate
Contaminant List (CCL) to determine if these
contaminants are effectively inactivated by
conventional treatment.

Report on the potential health risks associated
with three CCL microbial pathogens.

Provide method(s) for CCL related
pathogens in drinking water for use in the
Unregulated Contaminant Monitoring Rule.
                                                                      1
                                                                                 studies
                                                                                 report
                                    journal article
Baseline:
The EPA is required by the 1996 Amendments to the Safe Drinking Water Act to develop a list
of unregulated waterbome pathogens and chemicals, called the Contaminant Candidate List
(CCL), every five years to aid in priority setting for future regulatory determinations. The ability
of the Agency to develop future CCLs is dependent upon the availability of adequate information
on occurrence, exposure, health effects and treatability for the contaminants that may pose the
greatest public health risk.  Critical  uncertainties exist for  a large number of unregulated
contaminants in some or all of these areas. By the end of 2002, new information will be provided
on the potential health risks and treatability of several high priority pathogens and chemicals.
This will strengthen the scientific foundation for the  next  CCL and for future regulatory
determinations on these contaminants.
Research
Safe Drinking Water Research (DBF's)

In 2002     Produce reports on the assessment and control of risks associated with exposure to microbes and
            disinfection by-products (DBFs). This information will support scientifically sound regulatory
            decisions for microbes and DBFs, enhancing EPA's ability to protect drinking water supplies.

In 2000     EPA completed reports that provide important information about new DBFs in drinking water,
            the risks that may be posed by exposures to mixtures of these contaminants, and methods for
            improving the interpretation of data from published DBF epidemiology studies.

In 1999     The draft Comparative Risk Framework Methodology and Case Study was provided to the
            Science Advisory Board (SAB) Drinking Water Subcommittee for its review.

hi 1999     Produced data on the role of m icronutrient status on the metabolism/toxicity of arsenic, as well as
            data on the first city study on microbial enteric  disease.  In  addition, completed hazard
            identification and screening studies on reproductive/developmental effects of selected DBFs.
Performance Measures:
Data on first city study on microbial
enteric disease.

Complete hazard i.dVscreening studies
                                 FY1999
                                 Actuals
FY2000
Actuals
FY2001
Estimate
FY2002
Request
                                 30-Sep-1999
                                                    11-33

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on reproductive/developmental effects of
selected DBFs,                               30-Sep-l 999

Report assessing the feasibility of
attaining/constructing refined DBF exposure
information for extant epidemiologic drinking
water studies.                                1                                    report

Report on the identification of new DBFs
in drinking water formed by alternative
disinfectants.                                1                                    report

Complete a peer-reviewed report on the impacts
of mixtures of selected DBFs on cancer and
various noncancer endpoints, including
reproduction and developmental effects,
from animal studies,                                       1                                   report

Add comparative Risk Framework Report.      1                                                report

Assess risks from caliciviruses and
Cryptosporidium as a function of dose
and host susceptibility.  Will aid in
evaluating treatment approaches to
prevent disease.                                                                   2           reports

Develop process-design recommendations
for control of Cryptosporidium and DBFs
in ozone/chlofamine treated waters.                                                  1           report

Produce a report on waterbome disease
outbreaks in the U.S. in 1999-2000,
which will provide information on causative
agents, health effects, water quality and
treatment issues.                                                                  1           report

Report on the occurrence of chemical
by-products from alternative drinking
water disinfection processes in water
treatment systems.                                                                1           report

Baseline:     The Safe Drinking Water Act Amendments of 1996 require EPA to develop regulations that
             minimize public exposure to potentially harmful disinfection by-products (DBFs) in drinking
             water,  while  protecting  the public  against waterbome  pathogens such as the parasite
             Cryptosporidium. Although considerable progress has been made over the last 20 years in our
             ability to assess and control the risks posed by these contaminants, a number  of scientific
             uncertainties still remain. For example, information is needed on the occurrence of DBFs formed
             from the use of alternative  disinfection processes, on the risks posed by selected DBFs and
             microbes, and on better methods to control DBFs and pathogens. Data and methods produced in
             2002 will provide a better understanding of the nature and magnitude of waterbome microbial
             disease in the U.S., new information on the  risks posed by individual DBFs and mixtures of
                                                   11-34

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          by-products in drinking water, and improved methods for monitoring and optimizing control of
          specific DBFs and pathogens.

          Research

Verification and Validation of Performance Measures -
Goal 2 Objective 1

Performance Measure:   Population served by community water systems will receive drinking
water for which no violations of Federally enforceable health standards have occurred during the
year, up from 83% in 1994; and Population served by community water systems will receive
drinking water meeting health-based standards promulgated in 1998.

Performance Database: Safe Drinking Water Information System (SDWIS)

Data Source: States, Regions for Direct Implementation (DI) states

QA/QC Procedures: SDWIS has numerous edit checks built into the software to reject erroneous data.
 There are quality assurance manuals for states and regions to follow to ensure data quality. EPA offers
training to states on data entry and data retrieval, and also provides a troubleshooters guide and an error
code database for states to use when they have questions on how to enter or correct data.

Data Quality Review: Quality assurance audits of OGWDW's QA/QC processes, including those for
SDWIS,  are carried out every three years. This effort is coordinated by the QA division. EPA last
completed a quality assurance audit in July 1999. SDWIS was identified as an Agency weakness in the
Fiscal Years 1999 and 2000 Federal Managers' Financial Integrity Report.

Data Limitations: Currently SDWIS is an "exceptions" database that focuses exclusively on public
water systems' noncompliance with drinking water regulations (health-based and program).  States
implement drinking water regulations with the support of the Public Water System Supervision (PWSS)
grant program. States with primacy determine whether public water systems have violated maximum
contaminant levels (MCL), treatment technique requirements, consumer notification requirements, or
momtoring-and-reporting requirements, and report those violations through SDWIS.

Neither system monitoring requirements  nor  analytical results are maintained in SDWIS-FED.
Therefore, automated determination of compliance is not possible in SDWIS-FED. Recent state data
verification and other quality assurance analyses indicate that the most significant data quality problem
is under-reporting to EPA of both monitoring and reporting violations  and incomplete inventory
characteristics.  Monitoring and reporting violations are not included in the health based violation
category; however, failures to monitor could mask treatment technique and MCL violations.  The
incomplete inventory data limit EPA's ability to: 1) accurately quantify the number of sources and
treatments applied, 2) undertake geo-spacial analysis, and 3) integrate and share data with other data
systems.
                                           11-35

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New/Improved Data or Systems: Using a newly-developed information strategy developed by EPA
in partnership with the states and major stakeholders, several improvements to SDWIS are underway.
First, EPA will continue to work with states to implement the Data Reliability Action Plan (DRAP), a
multi-step approach to improve the quality and reliability of data in SDWIS.  The DRAP already has
improved the completeness, accuracy, and timeliness of the data in SDWIS through:  1) training courses
for SDWIS data entry, error correction, and regulation-specific compliance determination and reporting
requirements, and 2) specific  DRAP analyses,  follow-up activities and  State-specific technical
assistance.

Second, more States will be using SDWIS-STATE, a software information system jointly designed by
States and EPA, to support States as they implement the drinking water program. SDWIS-STATE is
the counterpart to EPA's federal drinking water information system, SDWIS-FED, and employs the
same edit criteria and enforces the same mandatory data elements. If the SDWIS-STATE system is
fully utilized by a State, the information it holds meets EPA's minimum data requirements and can
easily be reported to EPA, thereby improving data quality and accuracy,  hi addition, a web-enabled
version of SDWIS-STATE and a data migration application that can be used by all States to process
data for upload to  SDWIS-FED, are currently being developed. By the end of 2002, EPA estimates that
40 states will be using SDWIS-STATE for data collections.

Third, EPA is modifying SDWIS-FED to: 1) streamline its table structure, which simplifies updates and
retrievals, 2) minimize data entry options that result in complex software and prevents meaningful edit
criteria, and 3) enforce compliance with permitted values and Agency data standards through software
edits, all of which will improve the accuracy of the data.

Finally, EPA, in partnership with the States, is developing information modules on other drinking water
programs, e.g., source water protection, underground injection control, and the Drinking Water State
Revolving Fund.  These modules will be integrated with SDWIS to provide a more comprehensive data
set with which to  characterize the quality of the nation's drinking water supplies.

Goal 2 Objective 1

Performance Measure:    Beaches for which monitoring  and closure data is  available at
http://www.epa.gQy/OST/beaches/.

Performance Database:  National Health Protection Survey of Beaches Information Management
System

Data Source: State and local governments

QA/QC Procedures: A standard survey form has been approved by OMB which is distributed by mail
hi hard copy and is available on the Internet for electronic submission. Where data is entered over the
internet, a password is issued to ensure the appropriate party is completing the survey.
                                          11-36

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Data Quality Review: EPA reviews the survey responses to ensure the information is complete, then
follows up to obtain additional information where needed. However, the Agency cannot verify the
accuracy of the voluntary information state and local governments provide.

Data Limitations:  Participation in this survey and collection of data is voluntary. While the voluntary
response rate has been high, it does not capture the universe of beaches. Participation in the survey will
become a mandatory condition of grants  awarded under the new "BEACHES" program (described
below) in FY 2002; however, state and local governments are not required to apply for a grant.  Data
standards  are available but procedures,  methods, indicators,  and thresholds can vary between
jurisdictions because this is a voluntary program.

New/Improved Data or  Systems:    With the  passage of amendments known as the "Beaches
Environmental Assessment and Coastal Health Act of 2000" to the Water Pollution Control Act, states
with coastal recreation waters are required to adopt water quality criteria and standards to improve and
protectthe quality of those waters. The Agency is authorized to award grants to help states develop and
implement monitoring and notification programs consistent with Federal requirements. As the Agency
makes these grants, it will require standard program procedures, sampling and assessment methods, and
data elements for reporting. To the extent that state governments apply for and receive these grants, the
amount and quality of available data will improve.

       Research

Verification and Validation of Performance Measures

Performance Measure: Provide method(s) for CCL related pathogens in drinking water for use
in the Unregulated Contaminant Monitoring Rule.

Performance Database:  Not applicable. This performance measure relates to an EPA scientific or
technical product which is not tracked in an environmental database.

Data Source: Agency generated material

QA/QC Procedures: N/A

Data Quality Reviews: As required by the Agency-wide formal peer review policy issued in 1993, and
reaffirmed in 1994 and 1998, all major scientific and technical work products used in Agency decision
making are independently peer reviewed before their use. EPA has implemented a rigorous process of
peer review for both its in-house and  extramural research programs.  Peer review panels include
scientists and engineers from academia, industry, and other federal agencies.

Data Limitations: N/A

New/Improved Data or Systems: N/A

                                           11-37

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Coordination with Other Agencies

       The 1996 SDWA amendments include a provision that mandates a joint EPA/Centers for
Disease Control (CDC) study of waterborne diseases and occurrence studies in public water supplies.
CDC is involved in assisting EPA in training health care providers  (doctors, nurses, public health
officials,  etc.) on public health issues related to drinking water contamination and there is close
CDC/EPA coordination on research on microbial contaminants in drinking water. EPA has in place a
Memorandum of Understanding (MOU) and Interagency Agreement (IAG) with the CDC hi the
Department of Health and Human Services (DHHS) to implement this provision.

       In implementing its source water assessment and protection efforts, the Agency coordinates
many of its activities with other Federal agencies. There are three major areas of relationships with
other agencies concerning source water assessments and protection.

Land management involves coordinating with the  Department of Agriculture's (USDA's) Forest
Service; the Department of Interior's (DOT) National Park Service and Bureaus of Land Management
and .Reclamation; the Department of Defense's (DOD's) facilities management and operations units;
and the U.S. Postal Service (USPS) to address unified policy on federal land management within source
water areas.

Public Water Systems (PWSs).  Some federal agencies, i.e., USDA (Forest Service), DOD, Department
of Energy, DOI (National Park Service), and USPS, own and operate public water systems. EPA's
coordination with these agencies focuses primarily on ensuring that they cooperate with the states in
which their systems are located, and that they are accounted for in the states'  source water assessment
programs as mandated hi the 1996 amendments to the SDWA.

Date Availability. Outreach and Technical,Assistance.  EPA coordinates with USGS (US Geological
Survey), USDA (Forest Service, National Resource Conservation Service, Cooperative State Research,
Education, and  Extension Service (CSREES),  Rural Utilities Service); DOT, DOD, DOE,  DOI
(National Park Service and Bureaus of Indian Affairs, Land Management, and Reclamation); DHHS
(Indian Health Service) and the Tennessee Valley Authority.

Collaboration with USG§. EPA and USGS have identified the need to engage in joint, collaborative
field activities, research and testing, data exchange, and analyses, in areas such as the occurrence of
unregulated contaminants, the environmental relationships affecting contaminant occurrence, evaluation
of currently regulated contaminants, improved protection area delineation methods, laboratory methods,
and test methods evaluation.  EPA has an LAG with USGS to accomplish such activities.

       The Agency also has in place an "umbrella" LAG that serves as the framework for coordinating
the various source water-related activities in these many federal departments and agencies.
                                          11-38

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       The Agency works closely with other federal and state agencies to assure the protection of
human health from contaminated fish and shellfish and contaminated recreational waters. For example,
EPA is working with the Food & Drag Administration to assure the consistency of public messages
about the risks of eating both commercial and non-commercial fish and shellfish that are contaminated.
EPA works with the Agency for Toxic Substances and Disease Registry (ATSDR) and CDC to learn
more about health effects of these types of exposure. The Agency works with ATSDR, National
Academy of Sciences (NAS), National Oceanic and Atmospheric  Administration,  and Endocrine
Disraptor Screening and Testing Advisory Committee to identify and characterize hazardous pollutants,
including endocrine disrupters, and develop criteria for states to use in establishing water  quality
standards and developing TMDLs.  EPA cooperates with the Departments  of the Army, Interior,
Agriculture and the National Oceanic and Atmospheric Administration to manage the risks associated
with contaminated sediments, which are the major sources of contamination offish.

       Research

       While EPA is the federal agency with the mandate to assure the safety of drinking water, other
federal and non-federal entities are conducting research that complements EPA's research program on
priority contaminants in drinking  water.  For example, health effects and exposure research is being
conducted by the  Centers for Disease Control and Prevention (CDC), and the National  Institute of
Environmental Health Sciences (NIEHS). Research related to children's risk and assessing exposures
to children is also being conducted by the Food and Drug Administration (FDA).  Many of these
research  activities are being conducted  in collaboration with EPA scientists.   The private  sector,
particularly the water treatment industry, is conducting research in such areas as analytical methods,
treatment technologies,  and  the  development  and  maintenance  of water resources.    A
Microbial/Disinfection By-Product Research Council was established in 1995 with the American Water
Works Association Research Foundation (AWWARF) and other stakeholder groups to  coordinate
research on microbial pathogens and DBPs.  EPA is also working with the U.S. Geological  Survey
(USGS) to evaluate the performance of newly developed methods for measuring microbes in potential
drinking water sources.

       Most recently, EPA signed a  four-year IAG with the Department of Defense to evaluate and
improve intelligent systems technology (e.g., sensors incorporated into structural materials, correlation
of sensor output with structural integrity and residual service life) that allow for real-time measurement
of the-structural condition of infrastructure. This structural condition information will provide the basis
for optimizing maintenance planning, thereby reducing infrastructure replacement costs and preventing
infrastructure failures and their attendant health, environmental, and economic hazards.

       Interactions with external stakeholder groups have been initiated that will help determine EPA's
future regulatory  priorities and research needs  for drinking water.  Interactions with the Science
Advisory Board's Drinking Water Committee and the National Drinking Water Advisory Committee
will also help EPA to formulate its drinking water research agenda.

Statutory Authorities

                                          11-39

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Safe Drinking Water Act
Clean Water Act
Toxic Substances Control Act

       Research

Safe Drinking Water Act
Clean Water Act
Toxic Substances Control Act
                                          H-40

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                             Environmental Protection Agency

              FY 2002 Annual Performance Plan anil Congressional Justification

                                   Clean and Safe Water


Objective #2: Protect Watersheds and Aquatic Communities

         By 2005, increase by 175 the number of watersheds where 80 percent or more of assessed
waters meet water quality standards, including standards that support healthy aquatic communities.
(The 1998 baseline is 501 watersheds out of a national total of 2,262.)
                                    Resource Summary
                                    (Dollars in thousands)

FY 1999 FY 2000
Enacted Actual
Protect Watersheds and Aquatic Communities $355,463.0 $377,216.8
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears


$182,080.8 $182,021.7
$19,852.9 $31,012.4
$153,529.3 $164,182.7
904.0 1,048.2
Key Programs
(Dollars in thousands)
FY 1999 FY 2000
Enacted Enacted
FY2001
Enacted
$457,289.8
$198,930.1
$37,222.1
$221,137.6
964.4

FY2001
Enacted
FY2002
Request
$406,121.4
$164,385.0
$37,923.5
$203,812.9
967.7

FY2002
Request
Water Quality Criteria and Standards

Wetlands

National Estuaries Program/Coastal Watersheds
$19,110.9    $18,545.1    $18,380.6     $18,787.5

;$15,694.9    $15,730.0    $16,959.8     $17,2912

$16,528.3    $18,029.2    $18,192.5     $17,053.2
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South Florida/Everglades
Chesapeake Bay
Great Lakes
Gulf of Mexico
Long Island Sound
Pfiesteria
Pacific Northwest
Lake Champlain
State Pollution Control Grants (Section 106)
State Water Quality Cooperative Agreements
State Wetlands Program Grants
Clean Water Exposure Research
EMPACT
Marine Pollution
Water Quality Monitoring and Assessment
Harmful Algal Blooms (HABs) and Related Research
Rent, Utilities and Security
Administrative Services
Regional Management
FY 1999
Enacted
$2,869.3
$20,361.5
$5,395.3
$3,798.9
$900.0
$2,500.0
$1,022.5
$2,000.0
$115,529.3
$19,000.0
$15,000.0
$0.0
$653.9
$7,420.4
$11,446.8
$2,234.5
$0.0
$511.4
$0.0
FY2000
Enacted
$2,923.0
$20,308.9
$3,263.7
$4,196.0
$975.0
$100.0
$1,043.2
$2,187.3
$115,529.3
$19,000.0
$15,000.0
$2,646.9
$125.0
$7,580.0
$9,762.6
$3,634.1
$16,579.0
$2,510.7
$1,686.9
FY2001
Enacted
$2,942.0
$20,728.1
$3,114.4
$4,341.2
$4,989.0
$99.8
$1,078.6
$1,995.6
$169,887.7
$18,958.2
$14,967.0
$2,640.6
$0.0
$7,797.9
$11,166.9
$5,436.9
$15,814.9
$3,323.8
$2,288.2
FY2002
Request
$2,855.0
$18,818.7
$3,027.0
$4,276.7
$477.4
$95.5
$1,103.8
$954.8
$169,883.3
$18,958.2
$14,967.0
$2,686.6
$0.0
$7,820.2
$11,309.2
$5,441.6
$17,144.0
$3,084.8
$2,102.6
FY 2002 Request

       EPA,  in concert with other Federal natural resource agencies,  continues  to  pursue a
comprehensive strategy for assessing and restoring the nation's most impaired watersheds to achieve
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healthy aquatic communities and attain clean water and public health goals.  Fundamental to the
Agency's efforts to meet this objective is the management of water quality resources on a watershed
basis, with the full involvement of all stakeholders, including communities, individuals, businesses,
state and local governments, and tribes. EPA's ability to meet this objective depends on the success of
regulatory and non-regulatory programs and nationwide efforts to implement a broad range of policy,
planning, and scientific tools to establish local goals and assess progress. To that end, the Agency will
continue to work with states and tribes to carry out their Total Maximum Daily Load (TMDL) programs
to help restore impaired watersheds and to meet the many court-supervised deadlines for completing
TMDLs.   EPA will provide up-to-date scientific tools (such as easy-to-use, geographically-based
models),  training, and technical assistance to support state and tribal TMDL programs. Section 303(d)
requires that appro vable lists of impaired waters be submitted in a timely manner and EPA will work to
ensure that TMDLs are developed at an appropriate pace.

       The Agency will continue to support comprehensive water quality assessments that establish
baselines against which to gauge progress toward objectives and goals and support decision-making
necessary to implement watershed restoration activities on a priority basis.  This  work will include
working with the states to enhance their monitoring and assessment programs to support water quality
decision-making. The Agency will continue to work with its state and tribal partners to establish and
maintain water quality standards and monitoring and assessment programs appropriate to their identified
goals and needs, rncluding addressing the elements outlined in EPA's monitoring and assessment
guidance and Clean Water Act (CWA) Section 303(d) requirements. EPA will assemble and report
state water quality assessments under CWA Section 305(b). EPA ensures that states and tribes are
entering  relevant water quality and related data into EPA's modernized national  data Storage and
Retrieval System (STORET).  An important use of state comprehensive water quality assessment
programs and other data is making that data available not only to decision- makers, but also to the
public. One part of this effort is a highly detailed map of waters of the United states contained within
the National Hydrography Database. Geographic layers of data,  interacting with up-to-date databases,
are being developed for a variety of areas including 303(d) listed waters, water quality standards, and
National  Pollutant Discharge Elimination System (NPDES) discharges.  STORET data will also be
accessible on a watershed-basis. Another of the tools the Agency has developed for public access is the
Index of Watershed  Indicators (IWI), a collaborative exercise with EPA  stakeholders  to clearly
characterize the condition and vulnerability of all of the Nation's watersheds and coastal waters. IWI is
evolving into an assessment tool to analyze and assess conditions in watersheds.

       EPA, in concert with the U.S. Department of Agriculture (USD A), Department of Interior (DOI)
and other Federal agencies, will work with the  states, tribes and territories to implement  watershed
restoration projects. The Agency will continue the development of a tracking system to document the
success of programs to reduce nutrient runoff to America's waters.  Working through the National
Water Quality Monitoring Council, EPA is cooperating in scoping comprehensive assessment of the
effectiveness of nutrient reduction programs.

       Critical to improving water quality is our refinement of water quality standards and sediment
quality standards. The Agency will continue to support states and tribes in incorporating risk analyses,
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priority setting, and risk management decisions, and in state/tribal adoption and implementation of water
quality standards based on revised criteria.  The Agency will continue to enhance Better Assessment
Science Integrating Point and Nonpoint Sources (BASINS)., a powerful geographic information system
which links projected nonpoint source runoff with point source discharges, to include more geographic
and hydrological detail so that TMDL and NPDES permit writers can better address  site-specific
conditions.

       EPA will work with its state partners to ensure that they adopt into their standards of criteria to
protect designated uses.  In 2002, the Agency will continue to develop and publish scientifically
defensible criteria for a broad range of stressors and assist states and tribes in adopting these criteria to
protect public health, attain and maintain  aquatic life  and other designated uses, and improve the
chemical, physical,  and biological integrity  of the Nation's waters.  EPA will develop guidance
materials to accelerate the adoption of biological criteria into state water quality standards.  The Agency
will also continue to develop and enhance PC-based modeling software to support site-specific metals
criteria and non-point source loadings. By providing training and workshops, EPA will expand its work
with tribes to implement "Treatment in a Similar Manner as a State" provisions and help tribes adopt
water quality standards. In July 1997, the U.S. District Court issued a ruling whereby state water quality
standards do not go into effect under the CWA until approved by EPA.  The Agency is devoting
significant effort to reduce the backlog of approval actions waiting to be taken on states' proposed water
quality standards. In 2002,  EPA will assure that actions are taken within the statutory deadlines. In
support of this effort, the Agency will make available on the Internet a comprehensive database on state
water quality standards that will help ensure nationwide consistency in  state programs  and support
timely action on states' proposed water quality standards.

       In watersheds where sediment contamination is determined to be widespread, especially in the
Great Lakes region, the Agency will continue to help states and tribes evaluate sediment quality, make
decisions about appropriate control measures,  and implement new methodologies that address a wider
range of pollutants. The Agency will also continue to maintain the National Sediment Inventory for the
purposes of preparing the next biennial report to Congress on contaminated sediments. The Agency, in
cooperation with the Departments of Interior and Agriculture, will conduct place-based contaminated
sediment recovery demonstration projects and help states and tribes interpret bioaccumulation data that
the Agency published in 2001.

       The Agency will continue to implement its Nutrient Strategy, employ states and tribes in filling
data gaps, and  address implementation issues related to controlling nutrient levels that can lead to
eutrophication, and are associated with harmful algal blooms such aspftesteria. Since the process for
assessing and controlling eutrophication is  considered site-specific in nature, the best assistance will
allow state and tribes to choose the tools that  best fit their conditions (waterbody-specific guidance).
The Agency will publish technical ecoregion guidance documents for nutrients (i.e., nitrogen and
phosphorus) and help states and tribes tailor their nutrient criteria to their specific waterbody types and
geographical regions.  EPA will award grants to states and local governments to help them implement
biocriteria and site-specific nutrient criteria. The Agency will further help them to develop and adopt
appropriate water quality standards.
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       In support of the Agency's tribal partnership efforts, the Agency will continue to support the
development and delivery of EPA training materials and workshops for tribes on basic water programs,
including nonpoint source, watershed management, water quality monitoring, quality assurance and
water quality standards and criteria.  The Agency will support the distribution of a National Tribal
Watershed  Assessment Framework to support defensible, reproducible tribal  assessments  of the
conditions of their watersheds and the sources of watershed impairments.

       EPA will continue to help states integrate their watershed assessments and plans, including
strategies for watershed restoration, with their ongoing TMDL programs.  With EPA assistance, states
will continue to accelerate the pace of development of TMDLs for impaired waters in high priority
watersheds. EPA is bound by court orders and consent decrees requiring state TMDL development,
with an EPA backstop, for 19  states requiring 1,500 TMDLs in FY 2002. EPA will continue to support
the Watershed Academy and its course offerings and technical transfer efforts to better train state, tribal
and local agencies in addressing these watersheds.

       The Agency will continue to build on successes and improvements achieved through watershed
and ecological restoration projects undertaken in 2001. Based on these experiences, additional tools and
technical information  will be provided to  states,  tribes, local  governments, and local watershed
organizations in  2002  to address their priority water pollution and resource degradation problems.
These techniques will  assist  in detertnining  actions needed to solve problems and assist in  setting
milestones  for evaluating progress toward environmental improvement.

       EPA will work cooperatively with states to increase integration of basic CWA programs and
activities into the watershed management approach,  focusing on monitoring, water quality standards,
nonpoint source controls, NPDES permitting, TMDLs, and source water protection. The Agency will
build on working closely with other Federal agencies and partners to integrate relevant programs to
ensure a comprehensive approach to the protection and restoration of rivers, lakes, and coastal waters.

       EPA will support the National Estuary Program (NEP) as all 28 estuaries continue to implement
their Comprehensive Conservation and Management Plans  (CCMPs), including efforts  to develop
environmental indicators to  assess status and trends in the NEPs, as well as  measure  success of
implementation of priority action plans in CCMPs, including habitat restoration efforts.   EPA  will
emphasize  and  support coastal partnerships to assist  local decision-makers  in developing  and
implementing protection programs for coastal watersheds, and will also support the application of
biological criteria; development of research plans and monitoring programs pertaining to coastal waters,
ocean dump sites, harmful algal blooms and other marine pests and diseases; coral reef and back-reef
protection; vessel discharge  issues; invasive species efforts; and management  and remediation of
contaminated sediments.

       For coastal ports and harbors, EPA will work with federal and state partners (e.g. the National
Dredging Team) and other stakeholders to establish  Regional Dredging Teams and  local planning
groups to help ensure that comprehensive dredged material management plans, including provisions for
the beneficial re-use of dredged material, are developed to maintain, restore, and improve the health of

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coastal ecosystems.  The Agency will manage pollution sources subject to the Marine Protection,
Research, and Sanctuaries Act; CWA; the Marine Plastic Pollution Research and Control Act, and other
related programs in such a way as to further protect and enhance our Nation's coastal and ocean waters.
This will include  development and implementation of environmental criteria for dredged material
management, designation of dredged material disposal sites, and implementation of site management
and monitoring plans.  Progress in these areas will depend on sound science derived from unproved
research and monitoring efforts  in coastal and marine waters.

       Through our Watershed Assistance  Grants, EPA will continue providing small grants to
non-profit organizations to advance watershed restoration efforts.  Priority in allocation  of grant
assistance will be given to organizations that have the capacity to bring diverse interests together to find
creative ways to restore and sustain the health of aquatic systems on a watershed basis. EPA, in concert
with the USDA and the National Oceanographic and Atmospheric Administration (NOAA), will also
work with other Federal agencies and states to dramatically increase the number of people involved in
local organizations that have "adopted" their watersheds and to encourage  new efforts where none
currently exist. A  major focus will be to engage students, seniors, business owners and employees and
others not traditionally involved in water resource issues to participate in ongoing community watershed
efforts.

       Section 106 grants to states, tribes, and interstate agencies are a primary funding source for them
to run programs for the prevention, reduction, and elimination of surface and ground water pollution
from point and nonpoint sources and for enhancing the ecological health of the Nation's waters. Within
this objective, $169,883,400  is requested for this grant program.  Activities within the section 106
program  include permitting,  water quality planning and standard setting, pollution  control studies,
assessment and monitoring, and training and public ttiformation. State efforts funded by section 106
grants will include developing TMDLs, implementing integrated wet weather strategies in coordination
with nonpoint source programs,  and developing source water protection programs. Tribes will continue
to conduct watershed assessments and will maintain and improve their capacity to implement  water
quality programs through monitoring, assessments, planning, and standards development. EPA will also
be working with the states to upgrade their water quality monitoring programs over the coming years.

       Water Quality Cooperative Agreements  (WQCA) will support the creation of unique and
innovative approaches to address requirements of the NPDES program, with special emphasis on wet
weather activities, i.e., storm  water, combined sewer overflows, sanitary sewer overflows and animal
feeding operations.    In the wet weather  area, these  grants have  been invaluable  in  enabling
demonstrations of unique technical, as well as managerial and funding techniques for addressing wet
weather problems. Specifically these funds  will be used to conduct special studies, demonstrations,
outreach and training efforts which will enhance the ability of the regulated community to deal with
pollution problems in priority watersheds.  Within this objective, $18,958,200 is  requested for this
program.
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GeographicInitiatives

       EPA will continue to support targeted geographic watershed initiatives of national importance,
including  the  NEP,  the  Chesapeake  Bay Program, Gulf of Mexico  Program  (GMPO),  South
Florida/Everglades, and the Pacific Northwest Forest Plan. Special emphasis on these varied regions
provides the opportunity not only to have necessary heightened Federal involvement in critical
watersheds, but to develop and implement water quality control practices and other management tools
whose successes can be  transferred to other  watersheds nationwide.  EPA is also committed to
supporting the Interior Columbia Basin Ecosystem Management Project, the Long Island Sound Office,
and the Lake Champlain Management Conference.

The Gulf of Mexico

       The GMPO works closely with the five Gulf States, Gulf coastal communities, non-government
organizations, and Federal agencies to  achieve specific environmental objectives. These include by
2009: assisting the States in restoring over 70 unpaired coastal water bodies in 12 priority coastal areas,
restoring or protecting 20,000 acres of coastal wetlands and sea grass; and preventing or mitigating the
               Targeted Areas for GMP Assistance  =
               Coastal Watersheds          =
               Watershed Boundaries of
               Targeted Areas (8 digit HUC's)   =
                   \
                    \
impacts caused by invasive aquatic species.  The GMPO provides direct technical and financial
assistance to the Gulf States, local governments, and non-profit organizations. In fiscal year 2002,
GMPO will focus its efforts on implementing priority projects, as identified by the Gulf States, that will
contribute to watershed-based efforts to improve 14 water bodies currently identified as impaired;
protect or restore 1,000 acres of coastal wetlands and sea grass that are essential for sustaining the Gulfs
fisheries; and assist States in mitigating the impacts or introduction of invasive aquatic species in at least
three priority coastal watersheds.
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The Chesapeake Bay
       The Chesapeake Bay Program is a partnership between Maryland, Virginia, Pennsylvania, the
District of Columbia, the Chesapeake Bay Commission (a tri-state legislative body), and the EPA,
which represents the Federal government.  The Bay Program was formed in 1983, and operates in a
consensus fashion. The Bay Program has nine subcommittees which focus on specific issue areas (e.g.,
toxics, nutrients, and communications).
   600
8»
£
   114-I-.
< 100-
g
    80-I
       Chesapeake Bay Grass Restoration
               Potential Habitat (600,000 acres)
                 Interim Goal (114,000 acres)
o
«   60
    40
    20-
       •~<*No Surveys**!
       ™ i  i  i  i  i T
       787Q80B1 82838485868788894091 3203949596974844
reduction goals Baywide.
            In June 2000, "The Chesapeake 2000
    \ Agreement,' which was signed by the EPA
      Administrator, the Governors  of Maryland,
      Pennsylvania &  Virginia, the  Mayor  of the
      District  of Columbia, and  the chair  of the
      Chesapeake  Bay Commission  is  the most
      comprehensive and far-reaching agreement in
      the Bay Program's history. The primary goal of
      the new agreement is to improve water  quality
      sufficiently to sustain the living resources of the
      Chesapeake Bay and its tidal tributaries and to
      maintain that water quality into the future.  This
      will mean setting increased nutrient reduction
      goals  and for the first  time setting sediment
       The agreement has five sections containing commitments to protect and restore living resources,
vital habitats, and water quality through sound land use by promoting stewardship and engaging
communities throughout the 64,000 square mile watershed. The agreement is designed  to build on past
restoration actions and will continue all Bay        	_.	   .	__	
Program commitments  outlined in previous          Figure 1:  Average Annual Net
agreements or Executive Council directives.            Change  in Wetland Acreage         I

Wetlands
In 1989, President Bush set a national goal of
no  net loss of wetlands. In the mid-1990's,
with progress towards that goal underway, a
longer term goal was established to achieve
an  annual net gain of wetlands of 100,000
acres by 2005.  This will reverse historic
trends of wetland losses (see Figure 1) and
restore   some of the 54% of the nation's
a 100 -
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<
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e «.ww
8 -300
3
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£
-500










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-458










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          1950s-
           70s
                                                              1970s-
                                                                80s
                                                                        1980s-
                                                                          90s
2005 goal
Source: USFWS Wetlands Status and Trends 2000
                                           11-48

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wetlands already drained.  EPA will contribute to this wetlands quantity goal through a number of
programs, and will also take steps to advance the national goal of an increase in the quality of wetlands.

       Working with other federal agencies, EPA and the Corps of Engineers will implement Section
404 of the CWA to protect wetlands, free-flowing streams, and shallow waters in a fair, flexible, and
effective manner.  Program improvements will be implemented to ensure program activities are
effectively and consistently applied to the extent authorized by the  CWA.  EPA and the Corps will
advance the regulatory program goal of no overall net loss of wetlands by improving the environmental
success  rate of  mitigation projects  to  offset  unavoidable losses of wetlands, implementing
recommendations from the National Academy of Sciences Report to be released in Spring 2001.

       EPA will  encourage local  governments of communities with at-risk youths and students to
restore wetlands and river corridors through youth education projects that bring together citizen groups,
corporations, landowners and local governments with schools and youth groups.

       Building upon successful projects in a number of states, EPA will help states and tribes develop
programs to monitor the extent and condition of their wetlands. Biological indicators will be used to
evaluate the relative health of wetlands to determine the extent and causes of disturbance. EPA will
provide assistance in low-cost monitoring techniques, including volunteer monitoring and satellite
imagery. The information collected will guide management decisions to evaluate restoration success
and to improve the  quality of wetlands, addressing stressors  including polluted run-off, changes in
hydrology, invasive species, and habitat fragmentation.

       A total of $14,967,000 million from the State and Tribal Assistance Grants appropriation is
requested to enable states, tribes and local governments to develop and strengthen their programs to
conserve, manage and restore wetlands, and to support watershed-based wetland initiatives. This will
support regulatory approaches as well as incentive-based programs, training, and monitoring.

       Research

       The health and sustainability of aquatic ecosystems and their ecological components are affected
by various types of chemical, biological, and physical stressors.  There is a significant scientific
uncertainty associated with the resiliency of aquatic ecosystems and their biotic components. Research
in this objective will focus On the development of watershed diagnostic methods and on understanding
the importance of critical habitats and the impacts of habitat  alteration on aquatic communities.  In
addition, this research will provide the scientific foundation to support Total Maximum Daily Loads
(TMDLs). The critical stressors studied under this research program correspond to the Clean Water Act
(CWA) Section 101(d) listing of stressors that contribute to water quality impairment. These include:
nutrients, sediments, suspended solids, pathogens, toxic chemicals, and habitat alteration.

       Research on diagnostic methods will focus on determining whether an aquatic ecosystem has
been impaired and the causes of that impairment. This work will be useful in deriving criteria to protect
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and strengthen the biological basis for designated uses in state and Tribal water quality standards,
improving the scientific foundation for addressing point and non-point source water quality impairment,
and determining appropriate and effective watershed management alternatives. Technical guidance and
assistance will be provided to states and tribes to promote the establishment of scientifically sound bio-
assessments and biologically-based water quality criteria for rivers and streams.

       Modeling and landscape characterization research will improve the development of watershed
management approaches and permits for point and non-point source discharges.   Modeling research
will develop, refine and evaluate draft protocols for developing  watershed management tools for
nutrients and sediment  loadings.  Landscape  characterization research will develop methods to
characterize watershed  conditions  based on  landscape indicators, watershed  classifications  and
ecological  and  hydrological process-modeling.   This research will determine  if landscape-based
classification of watersheds can be used effectively to detect changes in watershed condition in response
to landscape stressors. Valuable applications of landscape indicators and assessments by states, tribes
and water resource managers include: prioritizing vulnerable areas (e.g., steep slopes, erodible soils) for
more targeted monitoring to identify CWA "impaired" water bodies; identifying "pristine" sites for
selecting reference conditions; identifying potential causes of impairment; forecasting the impacts of
remediation decisions; identifying opportunities for-protecting drinking  water sources; and "smart-
growth" development alternatives that minimize environmental impacts.  Risk management research
will focus on developing a better understanding of the sources of these stressors and the effectiveness of
management options to control them. This information will be used to develop decision support tools
to assist watershed managers in analyzing the problem(s) and identifying cost effective  solutions.

       Research to understand hypoxia, algal blooms, and eutrophication will also continue. An area
of approximately 7,000  square miles in the Gulf of Mexico is hypoxic, and the incidence of algal
blooms is increasing in coastal waters world-wide. These stresses may be related to increased nutrient
loadings and eutrophication. They  threaten  ecosystem integrity,  sustained use,  and productivity.
Research will be conducted to understand the dynamics of ecosystem response to eutrophication. EPA
will develop stressor response models to understand and predict the relationship between stressors such
as nutrients, eutrophication and hypoxia on aquatic ecosystems including wetlands, riparian zones,
sediments, and freshwater and marine ecosystems. EPA will also develop an ecological risk assessment
for nutrients, initially focusing on nitrogen, as part of its program to develop common methodologies for
integrating ecological and human health assessments.  Research on the ecology and oceanography of
Harmful Algal Blooms (HABs) will be developed as part of a joint effort with other Federal Agencies
including the National Oceanic and Atmospheric Administration (NOAA). and the National Science
Foundation (NSF).

       Although suspended solids and sediment are a natural part of aquatic ecosystems critical to the
energy cycle of the water body as well as the provision of microhabitats, they have become a stressor
associated with human activity that adversely affects aquatic habitats. In a 1998 EPA  Water Quality
Inventory, Report to Congress, suspended solids and sediments were among the leading causes of water
quality impairment for streams and rivers.  To maintain natural background levels of sediments and
suspended solids, water resource managers need scientific tools that are currently not available.  In FY

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2002, EPA will initiate a suspended  solids and sediments research program that will focus on
developing tools which allow for the determination of background sediment levels inherent to a region.
The Agency's research program will also focus on understanding the stressor response relationships
between sediment imbalances and impacts to aquatic communities. Risk management strategies will be
developed to help reduce the impact of human activities on sedimentation and maintain suspended
solids and sediments at background levels.

       Chemical stressors also impact aquatic life, the benthic community, wildlife and human health.
EPA's research program will develop and apply models to predict the effects of toxic chemicals in
freshwater and marine ecosystems, including wetlands, riparian areas and sediments. This research will
include developing scientifically valid approaches for assessing ecological risks of organic and inorganic
chemicals to aquatic life and wildlife populations. These approaches will support the development of
water quality criteria and aid in the protection of threatened and endangered species. In FY 2002, EPA
will provide a method for setting risk-based aquatic life criteria for toxic chemicals.  In addition, critical
habitats are important to maintaining biological diversity and integrity.  EPA will conduct research to
develop approaches to characterize and prioritize aquatic resources such as wetlands, estuaries, riparian
areas, stream corridors,  and headwaters for protection. This research will involve the development of
models to understand and predict stressor response relationships related to aquatic habitats such as
wetlands, riparian zones, sediments, and freshwater and marine ecosystems.

FY 2002 Change from FY 2001 Enacted

EPM

•      (+$735,800,  +15 FTE) This increase reflects the increase in workforce  costs including
       workforce costs to support workyears  redirected  for  the  TMDL  program and grants
       management.

       (-$36,761,900) The FY 2002 Request is $36,761,900 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the F Y 2002 President's Request.

•      (-13 FTE) EPA will reduce technical assistance provided to  states and localities for water
       quality  standards  development,  monitoring/assessment,  and  on-the-ground   watershed
       restoration.
       (-$17,324,700) The FY 2002 Request is $17,324,700 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.

       Research


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S&T
       (+$1,920,300 and 12.5 FIE) Resources shifted from Goal 5, Objective 1  will result in an
       increase to watershed restoration research for the development of decision support tools to assist
       watershed managers in analyzing problems and identifying cost effective solutions.  This
       activity will help to  provide the scientific underpinning of TMDLs; will support the linkages
       between sources and target allocation; and will focus on development of implementation and
       monitoring plans. Restoration and management alternatives for controlling sources will be
       evaluated. This will provide information needed to implement waste-load allocations and will
       consider seasonal variations, future loads and margins of safety.

       (+$999,100 and 6.3  FTE) Suspended solids and sediments (non-contaminated) are among the
       most frequently identified stressors causing water quality impairment.  This increase is for
       research to develop  the scientific basis supporting the development of criteria for suspended
       solids and sediments  and to  develop and evaluate more  cost effective technologies  and
       approaches for their management.  This  research will identify the appropriate metrics or
       thresholds  for  assessment of sediments and  suspended  solids;  determine appropriate
       classification methods  for high priority waters at different scales; determine the best approach
       for  establishing reference conditions  for these  stressors; determine the stressor response
       relationship for these  stressors alone and  in combination with other stressors such as toxic
       chemicals, nutrients, metals, and altered temperature.

       (+$988.200) This increase reflects an increase in workforce costs.

       (-$338,700 and -0,5  FTE)  This reduction reflects a redirection in resources for research on
       stressor response models for habitat alteration, biocriteria, nutrients, eutrophication and harmful
       algal blooms.  Resources are  being redirected to support the development of criteria for
       suspended solids.

       (-$ 1,274,000 and -10.0 FTE) This contaminated sediments research program is shifting to Waste
       Research (Goal 5) in order to meet the needs of the Office of Solid Waste and Emergency
       Response (OSWER).  EPA has a continuing need for research on contaminated sediments,
       however  the focus  for that need has  shifted from OW to OSWER to address Superfund
       ecological risk assessment research needs.  Research will focus on effects of bioaccumulative
       chemicals such as  metals that will be  used to update  existing sediment guidelines,  on
       development of the  scientific basis for wildlife criteria, and on how to bring these together to
       establish  integrated risk based criteria

       (-$689,900 and -7.3  FTE) This reduction is to help meet the Agency's FY 2002  FTE ceiling,
       and will result in a  delay to lower priority research in the development of integrated water
       quality criteria.  These criteria will incorporate sediment guidelines, aquatic life and wildlife
       criteria to develop an integrated risk-based approach to protecting aquatic life.
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        (-$1,216,100) TheFY2002Requestis$l,216,100belowtheFY2001 Enacted budgetlevel due
        to Congressional earmarks received during the FY 2001 appropriations process which are not
        included in the FY 2002 President's Request.

EPM

        (-$437,800) The FY 2002 Request is $437,800 below the FY 2001 Enacted budget level due to
        Congressional earmarks  received during the  FY 2001 appropriations  process which are not
        included in the F Y 2002 President's Request.
Annual Performance Goals and Performance Measures

Assessments of Designated Uses

In 2002     Assess, restore and protect watersheds.

In 2001     Restore and protect watersheds through implementation of Clean Water Action Plan (C WAP)
           strategies.

In 2001     Assess river miles, lake acres, and estuary square miles that have water quality supporting
           designated uses, where applicable, for drinking water supply.

In 2000     Of the 2,674 water segments previously identified and analyzed by states as being polluted,
           states submitted TMDLs for 2, J 67 water segments, EPA approved 1,276 TMDLs submitted by
           states, and EPA established 166 TMDLs. Due to the large number of TMDLs submitted, not all
           TMDLs were addressed.

In 2000     Improved assessment of progress toward attainment of designated uses as indicated by electronic
           305(b) submissions from 43 States, Tribes, and Terriotites.

In 1999     29 States have electronically updated their 1998 305(b) information which reflected adequate
           monitoring and assessment programs (Base of 0).
Performance Measures:
Assessed river miles/lake acres/estuary
square miles mat have water quality
supporting designated beneficial uses,
where applicable, for drinking water supply.

Assessed river miles, lake acres, and estuary
square miles that have water quality
supporting designated beneficial uses,
where applicable, for fish and shellfish
consumption.

Assessed river miles, lake acres, and
FY 1999
Actuals
FY2000
Actuals
FY2001
Estimate
FY2002
Request
                      no target    no target    Rivers, etc.
           no target    no target
                                               11-53

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estuary square miles that have water
quality supporting designated beneficial
uses, where applicable, for recreation.

TMDLs established by EPA (cumulative).

TMDLs scheduled to be completed by the
end of 2001 (cumulative).

Impaired, assessed river miles, lake acres,
& estuary square miles that a) are covered
under WRAS and  b) were restored to their
designated uses during the reporting period.

Assessed river miles, lake acres, and estuary
square miles that have water quality supporting
designated beneficial uses, where applicable,
for aquatic life  support.

TMDLs submitted by the state (cumulative).

State-established TMDLs approved
(cumulative).

States electronically submit updated 305(b)

States, Tribes, and Territories electronically
submit updated 305(b).

Submission, with Nafl Watershed Forum,
of a Watershed Rest. Progress Report to the
President, etc. eval. progress & recommend.
Any actions needed to improve progress
toward meeting clean water goals.
                         no target     no target

             166         631          930         TMDLs
            2,674
            4,100
TMDLs
                         no target
29
            no target    no target

2,167       2,925                    TMDLs


1,276       2,900       6,000        TMDLs

                                     States
            43
                                     states, etc.
             0
                                     report
Baseline:     As of the 1998 Report to Congress on the National Water Quality Inventory, 69% of assessed
            river and stream miles; 71% of assessed lake, reservoir, and pond acres; and 65% of assessed
            estuary square miles have water quality supporting designated beneficial uses for aquatic life
            support. Likewise as of the 1998 report, 88% of assessed river and stream miles, 59% of assessed
            lake, reservoir and pond acres, and 65% of assessesd estuary square miles have water quality
            supporting their designated use for fish consumption.  91% of assesssed river and stream miles
            and  86% of lake, reservoir and pond  acres support their designated use for drinking water
            supply.
Restoring Watersheds

In 2002     By FY 2003, Water quality will improve on a watershed basis such that 600 of the Nation's
            2,262 watersheds will have greater than 80 percent of assessed waters meeting all water quality
            standards, up from 500 watersheds in 1998.
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In 2001      Water quality will improve on a watershed basis such that 550 of the Nation's 2,262 watersheds
            will have greater than 80 percent of assessed waters meeting all water quality standards, up from
            500 watersheds in 1998.

In 2000      Environmental improvement projects are underway in 324 high priority watersheds which are
            resulting in real water quality improvements in impaired watersheds.

In 1999      As part of the Clean Water Action Plan, 56 states and territories and 84 tribes are conducting or
            have completed unified watershed assessments, with support from EPA, which identified aquatic
            resources in greatest need of restoration or prevention activities.

In 1999      23 States submitted implementation plans to EPA (either as separate plans or as part of water
            quality management plans or other watershed planning process) that describe the processes for
            implementing TMDLs developed for waters impaired solely or primarily by nonpoint sources.

Performance Measures:                        FY1999    FY2000    FY2001    FY2002
                                            Actuals      Actuals     Estimate    Request

Watersheds that have greater than
80% of assessed waters meeting all
water quality standards.                                               550        600(FY03)  8-digitHUCs

States submitting implementation plans
for TMDLs for waters impaired solely
or primarily by NFS                          23                                               states

States that are conducting or have
completed unified watershed assessments        56                                               states

High priority watersheds in which
environmental improvement projects are
underway as a result of implementing
activities under the CWAP.                                324                                  watersheds

Baseline:    The state submitted 1998 303(d) lists identify the TMDLs that need to be established. Thus,
            the baseline against these 1998 lists is zero. The baseline for waters covered under Watershed
            Restoration Action Strategies (WRAS) will not be available until the FY2000 reporting cycle.
            As of the 1998 Report to Congress on the National Water Quality Inventory, 69% of assessed
            river and stream miles; 71% of assessed lake, reservoir, and pond acres; and 65% of assessed
            estuary square miles have water quality supporting designated beneficial uses for aquatic life
            support.  As of  1998 state reports,  500 watershed had met the  criteria  for water quality
            improving on a watershed basis. For a watershed to be counted toward this goal, at least 25%
            of the segments in the watershed must be assessed within the past 4 years consistent with
            assessment guidelines developed pursuant to section 305(b) of the Clean Water Act.

Dredged Material/Ocean Disposal

In 2002     Encourage comprehensive planning for the management of dredged material, and assure
            environmentally sound disposal of dredged material.
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In 2001      Encourage comprehensive planning for the management of dredged material, and assure
            environmentally sound disposal of dredged material.

In 2000      Appropriate action taken (e.g., Site designations or Site Managment and Monitoring Plan
            development) with regard to dredged material ocean disposal site designation in two additional
            cases. (Cumulative total of 80)

In 1999      Appropriate action taken with regard to dredged material ocean disposal site designation in
            one additional case.  (Base of 77)
Performance Measures:
Facilitate establishment of Local Planning
Groups to develop comprehensive plans
for dredged material management.

Participate in the development of local
comprehensive plans for dredged material
management (cumulative).

Appropriate actions taken re: dredged
material ocean disposal

Additional appropriate actions taken
(e.g., site designation, designations, or
Site Management and Monitoring Plan
development).
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
                                                local plang grps
                                                plans
                                                action
                                                 actions
Baseline:    As of January 2000, there are 4 existing Local Planning Groups  and 4 existing local
            comprehensive plans for dredged material management.

State/Tribal Water Quality Standards

In 2002     Percent of Tribes will have water quality monitoring and assessment programs appropriate for
            their circumstances and will be entering water quality data into EPA's national data systems.

In 2002     Assure that States and Tribes have effective, up-to-date water quality standards programs
            adopted in  accordance with the Water Quality Standards regulation and the Water Quality
            Standards program priorities.

In 2001     Assure that States and Tribes have effective, up-to-date water quality standards programs
            adopted in  accordance with the Water Quality Standards regulation and the Water Quality
            Standards program priorities.

In 2001     16% of Tribes will have water quality monitoring and assessment programs appropriate for
            their circumstances and will be entering water quality data into EPA's national data systems.

In 2000     35 States and 16 Tribes have effective, up-to-date water quality standards programs adopted
            in accordance with the Water Quality Standards regulation and the Water Quality Standards
            program priorities.
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In 1999     Provided to States and Tribes tools for risk characterization of and decision making regarding
            surface water contaminants, including PBTs and nutrients, that allow them to set and meet
            their own water quality standards.

In 1999     One additional Tribe established an effective water quality standards program for a cumulative
            total of 15 Tribes with effective water quality standards programs. In addition, 7 more tribal
            submissions are currently under review.

In 1999     EPA reviewed and approved 17 revised water quality standards for 17 states that reflect
            current guidance, regulation, and public input and promulgated replacement Federal standards
            for 1 additional state.

Performance Measures:                        FY1999    FY2000     FY2001     FY2002
                                             Actuals     Actuals      Estimate     Request

Tribes with monitoring and assessment
programs (cumulative).                                                 16          19          % tribes

Pilot STORET/305(b) reporting
projects with Tribes.                                                    9                       pilot projects

States with new or revised water quality
standards that EPA has reviewed and
approved or disapproved and promulgated
federal replacement standards.                                           30          20          states

States and tribes with approved E. coli
or enterococci criteria.                                                              40          states

States with new or revised water quality
standards that EPA has reviewed and
approved or disapproved.                      17                                              states

Models, methods, criteria developed/available
for risk characterization of surface water
contaminants.                                 1                                                list

Tribes with water quality standards adopted
and approved (cummulative).                   15          16          27          27          tribes

Baseline:     As of 1999, less than 5% of tribes have water quality monitoring and assessment programs
            appropriate for their circumstances and are entering water quality data into EPA's national data
            systems. State water quality standards program reviews are under a 3-year cycle as mandated
            by the Clean Water Act under which all states maintain updated water quality programs. The
            performance measure of state submissions (above) thus represents a "rolling annual total" of
            updated standards acted upon by EPA,  and so are neither cumulative nor strctly incremental.
            EPA must review and approve or disapprove state revisions to water quality standards within
            60-90  days after receiving the state's package.  In FY99, there  was a backlog of 70
            submissions from 32 states for  wihich EPA had not taken the appropriate action. At the end
            of FY  1999,15 tribes had adopted and approved water quality standards.
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Protecting and Enhancing Estuaries

In 2002      Restore and protect estuaries through the implementation of Comprehensive Conservation and
            Management Plans (CCMPs).

In 2001      Restore and protect estuaries through the implementation of Comprehensive Conservation and
            Management Plans (CCMPs).

In 2000     Completed Comprehensive Conservation and Management Plans (CCMPs) for  1  of the
            National Estuary Programs for a cumulative toal of 22 out of 28.

In 1999     Completed Comprehensive Conservation and Management Plans  (CCMPs) for  4  of the
            National Estuary Programs for a cumulative total of 21 out of 28.
Performance Measures:
Priority actions or commitments initiated
nationwide as part of the National Estuary
Program since approval of the first CCMP
in 1991 (cumulative).

Acres of habitat, restored and/protected
nationwide as part of the National
Estuary Program (annual),

Completed CCMPs
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
                        82%
                        50,000
FY2002
Request
                        85%
                        50,000
21
22
                        actions



                        acres

                        CCMPs
Baseline:    As of January 2000, estimated that 65% of priority actions initiated and 400,000 habitat acres
            preserved, restored, and/or created.
Gulf of Mexico

In 2002     Support projects with the goal of restoring or protecting over 1,000 acres of seagrasses and
            coastal wetlands per year.

In 2002     Initiate 3 projects in priority coastal areas to prevent or reduce the impact of invasive species

In 2002     Assist the Gulf States in implementing watershed restoration action strategies (WRAS) or their
            equivalent in 14 priority coastal river and estuary segments.

In 2001     Assist the Gulf States in implementing watershed restoration action strategies (WRAS) or their
            equivalent in 14 priority coastal river and estuary segments.

In 2000     Assisted the Gulf states in implementing watershed restoration action strategies (WRAS) or
            similar plans to restore waterbodies in 14 priority impaired coastal river and estuary segments.

In 1999     Reduced the number of nonpoint sources contributing to the total load of fecal contamination
            and nutrients in Gulf waters, in three priority Gulf coastal watersheds.
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In 1999     Initiated the development of marine conservation plans for Gulf Coast seagrasses in 3 Gulf
            States.
Performance Measures:
FY 1999
Actuals
Impaired Gulf coastal river and estuary
segments implementing WRAS or equivalent,

TMDLs (1) scheduled to be completed;
(2) submitted by Gulf States for segments
in the coastal watershed; and
(3) established by EPA and Gulf State
established TMDLs approved.

Assessed river miles, lake acres, and
estuary square miles that a) are covered
under WRAS and b) were restored to their
designated uses during the reporting period.

Gulf coastal priority areas with impairments
caused by invasive aquatic species

Increase seagrass acreage and restore
or protect coastal wetlands by 20,000
acres by 2009

Gulf states with marine conservation plans
for seagrasses.                                3

Gulf watersheds with State actions to
reduce NFS loads to Gulf growing waters.        3
FY2000
Actuals
            31
FY2001
Estimate
             14
FY 2002
Request
            14
            segments
                         no target     no target    TMDLs
                         no target     no target    Miles, etc.
                                                 projects
                                     1,000
                                     acres
                                                 states
                                                 watersheds
Baseline:    There are currently 95 coastal watersheds at the 8-digit hydrologic unit code (HUC) scale on
            the Gulf coast. The Gulf of Mexico Program has identified 12 priority coastal areas for
            assistance.  These 12 areas include 30 of the 95 coastal watersheds. Within the 30 priority
            watersheds, the Gulf States have identified 354 segments that are impaired and not meeting
            full designated uses under the States' water quality standards. 71 or 20% is the target proposed
            to reinforce Gulf State efforts to implement 5-year basin rotation schedules. The target of 71
            is divided by 5 to achieve the goal for assistance provided in at least 14 impaired segments
            each year for the next 5 years.
Chesapeake Bay Habitat

In 2002     Improve habitat in the Chesapeake Bay.

In 2001     Improve habitat in the Chesapeake Bay.
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In 2000     In the Chesapeake Bay watershed, 1,032 stream miles of migratory fish habitat was reopened
            through the provision offish passages, construction and restoration of 11,000 acres of oyster
            habitat, and 41% of wastewater flow to the Bay was treated by Biological Nutrient Removal.

In 1999     Submerged aquatic vegetation acres increased to 63,500; 11,000 acres designated for aquatic
            reef habitat; 32% of wastewater flow treated by Biological Nutrient Removal; 79% of lands
            have voluntary integrated pest management practices; and 534 stream miles of migratory fish
            habitat have reopened.
Performance Measures:
Pounds reduction, from 1985
levels, of nitrogen and phosphorus
loads entering Chesapeake Bay
(cumulative).

Miles of streambank and shoreline
restored with riparian forest
buffers,  (cumulative)

Wastewater flow to the Chesapeake
Bay treated by biological nutrient removal
(cumulative).

Acres of submerged aquatic vegetation
(SAV) present in the Chesapeake Bay
(cumulative).

Acres of aquatic reef habitat designated,
with construction and restoration of oyster
reef habitat to occur within those areas.

Agricultural, recreational and public
lands that have voluntary integrated
pest management (IPM) practice
established in the Chesapeake Bay
watershed (cumulative).

Stream miles of migratory fish habitat
reopened through provision offish
passages (cumulative).
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
            71/7 mil.     74/8.4 mil.  pounds
                        616
32
41
49
53
                                    miles
%WWflow
63,500      68,125       78,000       78,000       acres
11,000       11,000
                                    acres
79
524
1,032
1,172
1,243
                                    % lands
miles
Baseline:    In 1985, 0% of wastewater flow had been treated by Biological Nutrient Removal. In 1989,49
            miles of migratory fish habitat was reopened.  In 1984, there were 37,000 acres of submerged
            aquatic vegetation in the Chesapeake Bay. In 1988, voluntary IPM practices had been established
            on 2% of the lands in the Chesapeake Bay watershed.
Tribal Environmental Water Presence
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In 2002     Percent of Tribes will have a "water program environmental presence" (i.e., One or more persons,
            as appropriate, with environmental capability to advise Tribal governments on developing and
            implementing programs).

In 2001     40% of Tribes will have a "water program environmental presence" (i.e., one or more persons, as
            appropriate, with environmental capability to  advise Tribal governments  on developing and
            implementing programs).
Performance Measures:
Tribes with a water program presence
(cumulative).
                                            FY1999    FY2000    FY2001     FY2002
                                            Actuals     Actuals     Estimate     Request
                                                                    40          60          % tribes

Baseline:    As of 1999, approximately 20% of Tribes have a ""water program environmental presence.
Wetland and River Corridor Projects

In 2002
            Support wetlands and stream corridor restoration and management and assessment/monitoring of
            overall wetland health.
In 2001     Support wetlands and stream corridor restoration and management and assessment/monitoring of
            overall wetland health.

In 2000     4 States/Tribes developed wetlands assessment and monitoring tools and provided financial
            assistance to 74 wetlands restoration (other than Five-Star) projects.

In 1999     EPA provided funding to restore wetlands and river corridors in 46 watersheds that met specific
            "Five Star Project" criteria relating to diverse community partnerships (for a cumulative total of 57
            watersheds).
Performance Measures:
Watershed-based wetland restoration
projects to which EPA has provided
financial support (other than 5-Star Projects)
and/or has contributed significant technical
assistance (cumulative).

Watershed-/community-based wetlands/river
corridor restoration projects funded by EPA's
Five Star Program (cumulative).

Watershed-/community-based wetlands/river
corridor restoration projects funded by EPA's
Five Star Program.

States/tribes developing formal programs
and wetlands assessment capacities, aimed
                                            FY 1999
                                            Actuals
FY 2000
Actuals
                                                        74
                                            57
FY2001
Estimate
            99
FY2002
Request
             165
            projects
                                                                                             projects
                                    projects
                                                    11-61

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toward measuring wetland gain, loss
and/or deterioration.
                                                 states/tribes
Baseline:    As of September 1998, EPA cooperated on and supported 11 wetland and river corridor projects
            through the Five Star Program.  Going  into FY99,  11  states/tribes had met  the criteria for
            establishing formal assessment/monitoring programs.

            Research
Scientific Rationale for Surface Water Criteria

In 2002     Provide a method for setting risk-based aquatic life criteria for toxic chemicals which minimizes
            uncertainties of translating national and site-specific water quality criteria.

In 2001     Develop the framework for diagnosing adverse chemical pollutants in surface waters.

In 2000     EPA identified  the primary life  support functions of surface waters  that contribute to the
            management of sustainability of watersheds by completing the products below and other research
            activities.

In 2000     EPA developed the scientific rationale for numerical criteria for surface waters by completing the
            products below and other research activities.

In 2000     EPA developed a conceptual framework for the diagnosis and assessment of water quality
            impairment in U.S. watersheds by completing the products below and other research activities.

In 1999     Completed research strategy for integrating economic assessment with ecological risk assessment
            of aquatic stressors. Produced three publications on knowledge based approaches to watershed
            assessments, and a fourth on ecosystem classification and mapping.

In 1999     Completed reports on the requirements of submerged vegetation in coastal environments, and on
            predicting metal  toxicity in sediments. In addition, developed a research strategy on the scientific
            gaps in the areas of developing and implementing biocriteria.
Performance Measures:
Report on the requirements of submerged
aquatic vegetation in coastal environments.

Develop and provide a research strategy
for integrating economic assessment with
ecological risk assessment of multiple
aquatic stressors applied at two locations.

Complete Clinch and Powell Watershed
Risk Assessment.

Develop a research strategy for
development of numerical criteria
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
30-Sep-1999
30-Sep-1999
                                                 assessment
                                                     11-62

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for surface waters.

Research strategy document to determine
the impact of landscape changes on
wetland structure and fiinction.

Complete guidance document on acquiring
data for conducting watershed analyses for
multiple stressors and receptors.

Complete report on an assessment of the
viability of natural attenuation as an
option for the risk management of
contaminated sediments.

Complete and publish a compendium
of case studies illustrating the application
of the Stressor Identification Guidelines.

Decision-support tools and guidance
for watershed scale assessments; report
on risk characterization for watersheds.

Report on Sediment Toxicity.

Final report (including model and
database) comparing and analyzing the
quantitative dose-response relationships
of aquatic and aquatic-associated wildlife
and dioxin-like PBTs.
30-Sep-2000
requirements
                                   strategy
                                   guidance doc
                                   assessment
                                   compendium
            30-Sep-Ol
                                   report
                        1
report
Baseline:    Currently, water quality criteria are set by national guidelines and the states and tribes adjust the
            many national criteria to account for a variety of local water quality conditions and species. The
            site-specific adjustment to national criteria includes uncertainties which slow implementation due
            to different interpretations from stakeholders.  Toxicity models to account for the changes in
            bioavailability  of toxic  chemicals due to water chemistry and  temperature are incomplete.
            Age-related susceptibilities of natural populations are not accounted for in the national guidelines.
            By 2002, a risk-based approach will be developed to incorporate the high quality lexicological
            data directly into an estimate of risk to aquatic life under local conditions.
Verification and Validation of Performance Measures

Goal 2  Objective 2

Performance Measure: States with new or revised water quality standards that EPA has reviewed
and approved or disapproved, and promulgated Federal replacement standards.
                                                   n-63

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Performance Database:  No fonnal database exists.

Data Source: Regional reporting

QA/QC Procedures: Headquarters is responsible for collecting and compiling the data, and querying
Regions as needed.  Regions are responsible for collecting the data from their client states and reporting
the data to HQ once yearly.

Data Quality Review:  EPA Headquarters and Regions annually review the data submitted by states.


Data Limitations:  N/A

New/Improved Data or Systems:  N/A

Performance Measure: Tribes with water quality standards adopted and approved.

Performance Database:  No formal database exists.

Data Source: Regional reporting

QA/QC Procedures: Headquarters is responsible for collecting and compiling the data, and querying
Regions as needed.  Regions are responsible for collecting the data from their client states and reporting
the data to HQ once yearly.

Data Quality Review:  EPA Headquarters and Regions annually review the data submitted by states.


Data Limitations:  N/A

New/Improved Data or Systems:  N/A

Performance Measure:  Watersheds that have greater than 80% of assessed waters meeting all
water quality standards.

Performance Database:  Watershed Assessment Tracking Environmental Results System (WATERS),
to summarize water quality info  at the watershed level.  For  purposes of this national summary,
"watersheds" are equivalent to 8-digit HUCs (hydrologic unit codes), of which there are 2,262 nationwide.

Data Source:  State CWA §305(b) reporting

QA/QC Procedures: Data provided by states pursuant to individual state assessments (under §305(b))
of extent to which waters attain designated uses: QA/QC of state data dependent on individual state

                                           11-64

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procedures. Sufficiency threshold for inclusion in this measure requires that 20% of stream miles in an 8-
digit HUC be assessed.

Data Quality Review: §305(b) data subject to individual state review procedures prior to submission to
EPA. States then have opportunity to review compiled data prior to submission to Congress of the
national report, and prior to incorporation of data into WATERS

Data Limitations: Data not representative of comprehensive national assessments since states do not
assess all waters in each cycle.  States do not have identical water quality standards or identical
methods or criteria to assess their waters so data may not be consistent among states (or, given changing
state programs, over time for individual states.)

New/Improved Data or Systems: Work underway to develop WATERS, incorporating a broader range
of water quality information.  EPA is working with states, tribes and other federal agencies to develop
monitoring and assessment approaches to improve consistency. Also, working with partners to achieve
comprehensive coverage of all waters, in part through annual electronic reporting of key data elements
and enhancement of monitoring networks.

Performance Measure: Acres of habitat restored and protected nationwide since 1987 as part of the
National Estuary Program (NEP).

Performance Database: A tracking system is being developed to document the number of acres of
habitat restored and protected through the National Estuary Program.

Data Source: Program  documents on the estuaries in the National  Estuary  Program, such as
Comprehensive Conservation and Management Plans, annual work plans, and annual progress reports, all
contain information on the goals, objectives and accomplishments related to the restoration and protection
of estuarine habitat. These are the source documents providing information regarding the number of acres
of habitat restored and protected in each estuary. The data is then aggregated to arrive at a national total
for the entire NEP.

QA/QC Procedures: Primary data is collected by the staff of the NEP using the methods discussed
above; e.g. development of annual work plans and annual assessments of accomplishments. Aggregate
data is compiled through a contractor review of the NEP documentation, and the NEP staff are requested
to verify the numbers using their individual program documentation.

Data Quality Review: This is a new Annual Performance Measure which is still being refined. No audits
or quality reviews conducted yet.

Data Limitations: As some National Estuary Programs are still reporting data, and a tracking system is
under development,  we are unable to know the extent of data limitations.
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New/Improved Data or Systems: The Office of Water is working with the staff of the NEP to improve
data acquisition and lay the groundwork to geo-reference the data in a geographic information systei
(GIS). Its annual program guidance recommends a standardized format for habitat data compilation.
Coordination with Other Agencies

       Protecting and restoring watersheds will depend largely on the direct involvement of many Federal
agencies and state, tribal and local governments who manage me multitude of programs necessary to
address water quality on a watershed basis.  Federal agency involvement will include USD A (Natural
Resources Conservation Service, Forest Service, Agriculture Research Service), Department of the
Interior (Bureau  of Land Management, Office of Surface Mining, United States Geological Survey
(USGS), Fish and Wildlife, and the Bureau of Indian Affairs), National Oceanographic and Atmospheric
Administration (NOAA), Department of Transportation, and the Army Corps of Engineers,  At the state
level, agencies involved in watershed management typically include departments of natural resources or
the environment, public health agencies, and forestry and recreation agencies.   Locally, numerous
agencies are involved, including regional planning entities such  as councils of governments, as well as
local departments of environment, health and recreation who frequently have strong interests in watershed
projects.

       Government-wide, federal agencies share the goal of achieving a net increase of 100,000 acres of
wetlands per year by 2005, increasing wetlands functions and values, and implementing a fair and flexible
approach to wetlands regulations.

       Implementing successful comprehensive management plans for the estuaries in the NEP depends
on the cooperation, involvement, and commitment of federal  and state agency partners that have some
role in protecting and/or managing those estuaries. Other agencies routinely involved include the Corps
of Engineers, NOAA, the Fish and Wildlife Service, state departments of environmental protection or
natural resources, and governors' offices.

       Federal agencies, Gulf states, non-governmental organizations, and private citizens serve as
members of the GMPO's Federal Advisory Committee Act (FACA)-chartered Gulf of Mexico Policy
Review Board, subcommittees, and workgroups to provide advice, information and recommendations on
plans to improve and protect the water quality and living resources of the Gulf of Mexico.  Federal
partners include: EPA, USDA (Natural Resources Conservation Service, Cooperative State Research,
Education, and Extension Service, the Department Of Defense (Corps of Engineers, Department of the
Navy, Department of the Air Force), the Department of the Interior (USGS, Fish and Wildlife  Service,
National Park  Service), NOAA, the Food  and Drug  Administration,  and  the Department  of
Transportation. Gulf State partners include: Gulf State environmental agencies, natural resource agencies,
departments of health and agriculture, and marine fisheries commissions.  Non-government  partners
include: American Farm Bureau - Gulf of Mexico Committee, Gulf of Mexico Business Coalition, Gulf
Restoration Network, and 5 citizens from each Gulf State appointed by the governors.
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       The Chesapeake Bay Program is a partnership between Maryland, Virginia, Pennsylvania, the
District of Columbia, the Chesapeake Bay Commission (a tri-state legislative body), and the EPA, which
represents the Federal government.  The Bay Program was formed in 1983, and operates in a consensus
fashion.  The Bay Program has nine  subcommittees which focus on specific issue areas (e.g., toxics,
nutrients, and communications).

       The Chesapeake Bay Program also has aFederal Agencies Committee, which was formed in 1984
and has met regularly ever since. There are currently over 20 different federal agencies actively involved
with the Bay Program through the Federal Agencies Committee.  The federal agencies have worked
together over the past few years to implement the commitments laid out in the 1994 Agreement of Federal
Agencies on Ecosystem Management in the Chesapeake Bay and the  1998 Federal Agencies Chesapeake
Ecosystem Unified Plan. In the past year, several significant commitments have been met. These include
the inclusion of the Chesapeake Bay  protective language in all General Services Agency leases in the
watershed, the analysis of septic system function at thousands of U.S. Postal Service facilities throughout
the watershed, the creation of a guidebook for Federal landowners on conservation landscaping.

	Research
       EPA  has  developed joint  research  initiatives  with  the National Oceanic  Atmospheric
Administration (NO AA) and the United States Geological Survey (USGS) for linking monitoring data and
field studies information with available toxicity data and assessment models for developing sediment
criteria.

       In addition, under the Endangered Species Act, EPA is required to consult with the U.S. Fish and
Wildlife Service (USFWS) and the National Marine Fisheries Service (NMFS) on actions that may affect
endangered species.  EPA has developed a draft strategy for research and development of criteria for
endangered species that is now going through the review process. As part of the implementation of this
strategy, EPA is coordinating its research with the Biological Research Division of the USGS.

       The issue of eutrophication, hypoxia, and harmful algal blooms (HABs) is a priority with the
Committee on Environment and Natural Resources (CENR).  An interagency  research strategy for
pfiesteria and other harmful algal species was developed hi 1998, and EPA is continuing to implement
that strategy. EPA is working closing with NOAA on the issue of nutrients and risks posed by HABs.
This CENR committee is also coordinating the research efforts among federal agencies to assess the
impacts of nutrients and hypoxia in the Gulf of Mexico.

Statutory Authorities

Clean Water Act (CWA)
Safe Drinking Water Act (SDWA)
Marine Protection, Research and Sanctuaries Act (MPRSA)
Ocean Dumping Ban Act of 1988
Shore Protection Act of 1988

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Clean Vessel Act
Water Resource Development Act (WRDA)
Marine Plastic Pollution, Research and Control Act (MPPRCA) of 1987
National Invasive Species Act of 1996
Coastal Wetlands Planning, Protection, and Restoration Act of 1990
North American Wetlands Conservation Act
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
Toxic Substances Control Act (TSCA)
Resource Conservation and Recovery Act (RCRA)
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Clean Air Act Amendments (CAA)
Pollution Prevention Act (PPA)
      Research

Safe Drinking Water Act
Clean Water Act
Toxic Substances Control Act
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                               Environmental Protection Agency

               FY 2002 Annual Performance Plan and Congressional Justification

                                     Clean and Safe Water


Objective #3: Reduce Loadings and Air Deposition

       By 2005, reduce pollutant loadings from key point and nonpoint sources by at least 11 percent
from 1992 levels.  Air deposition of key pollutants will be reduced to 1990 levels.
                                      Resource Summary
                                     (Dollars in thousands)
                                          FY1999
                                          Enacted
              FY2000
               Actual
FY2001
Enacted
FY 2002
Request
Reduce Loadings and Air Deposition

    Environmental Program & Management


    Science &. Technology

    State and Tribal Assistance Grants

        Total Workyears
$1,981,357.1    $2,019,714.2   $1,994,941,9   $1,711,184.5

 $124,463.6      $136,265.7     $150,079.4    $132,931.8



  $11,272.5        $6,748.8       $8,770.1      $5,852.9

$1,845,621.0    $1,876,699.7   $1,836,092.4   $1,572,399.8

      863.1          588.5         863.0         852.0
                                         Key Programs
                                      (Dollars in thousands)

Rural Water Technical Assistance
Effluent Guidelines
NPDES Program
State Nonpoint Source Grants
National Nonpoint Source Program Implementation
FY1999
Enacted
$3,095.0
$22,372.2
$30,862.6
$200,000.0
$16,033.7
FY 2000
Enacted
$3,586.1
$21,116.9
$36,274.9
$200,000.0
$15,401.1 .
FY2001
Enacted
$3,889.6
$21,782.4
$39,405.2
$237,476.8
$16,170.7
FY2002
Request
$435.4
$21,492.3
$40,249.6
$237,476.8
$16,342.4
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                                              FY1999
                                              Enacted
           FY2000
           Enacted
FY2001
Enacted
FY2002
Request
Water Infrastructure: Clean Water State Revolving     $1,350,000.0   $1,345,4213  $1,347,030.0
Fund (CW-SRF)
Water Infrastructure: Alaska Native Villages

Water Infrastructure: Boston Harbor

Water Infrastructure: Bristol County

Water Infrastructure: New Orleans

Watershed Research

EMPACT

Project XL

Water Infrastructure:  Sewer Overflow Control Grants

Rent, Utilities and Security

Administrative Services

Regional Management
$30,000.0     $30,000.0     $34,923.0

$50,000.0         $0.0          $0.0

 $2,610.0      $2,000.0      $1,935.7

 $6,525.0      $3,800.0          $0.0

$10,297.5      $7,481.8      $7,872.1

    $0.0         $0.0        $100.1

  $211.3       $220.5        $2382

    $0.0         $0.0          $0.0

    $0.0     $12,038.3     $11,354.5

  $541.1      $2,327.0      $3,269.3

    $0.0      $1,747.2      $2,308.1
             $850,000.0


              $34,923.0

                   $0.0

                   $0.0

                   $0.0

               $5,852.9

                   $0.0

                   $0.0

             $450,000.0

              $12,115.8

               $3,087.4

               $2,206.2
FY 2002 Request

       A key element of the Agency's effort to achieve its overarching goal of clean and safe water is the
reduction of pollutant discharges from point sources and nonpoint sources. Under the National Pollutant
Discharge Elimination System (NPDES) program (which includes NPDES permits, urban wet weather
issues, the pretreatment program for non-domestic wastewater discharges into municipal sanitary sewers,
and biosolids management controls), specific limits are set for pollutants discharged from point sources
into waters of the United States.  These limits are designed to ensure that national technology based
standards (effluent limitations and guidelines) and water quality based requirements are adequate to meet
water quality standards throughout the country. Financial assistance to states, interstate organizations, and
tribes for many  of these programs is provided through the Section 106 grant program included under
Objective 2 of the Clean and Safe  Water Goal: Conserve and Enhance Nation's Waters.  EPA  also
provides financial assistance through the Clean Water State Revolving Fund (CWSRF) program to states
for the construction of wastewater treatment facilities, implementation of projects to manage and reduce
nonpoint source pollution, and execution of other water quality management projects. The program is
encouraging the use of CWSRF loans to finance the highest priority projects on a watershed or statewide
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basis and continued flexibility for states to direct loan funds to their greatest infrastructure needs, whether
wastewater or drinking water.  Additionally, the program provides grants for Alaska Native Villages,
Indian Tribes, and other communities with special needs.

       These base programs have been largely responsible for the substantial progress made to date in
reducing water pollution. Providing states with continuing support is essential to achieving this objective
and the overall goal of clean and safe water. EPA, in partnership with the states, will continue to ensure
that all facilities required to have permits will have permits that are effective and include all conditions
needed to ensure water quality protection. The Agency will continue its efforts to promote innovation in
the NPDES and pretreatment programs. In addition, the Agency will continue to reorient both the NPDES
and CWSRF programs to a watershed focus, and will continue to work with states to provide assistance
when needed to the nation's 13,000 small publicly-owned wastewater treatment plants to help them
comply with their permits.

       The Agency will propose effluent limitations guidelines for three major industrial sectors:
meat products, container and drum, and construction and development. EPA will promulgate final
effluent guidelines for the coal  mining  and iron and steel industries. These guidelines will then be
incorporated into NPDES permits as they are issued or reissued by the NPDES permitting authority. The
Agency will also continue to work on effluent limitations guidelines to address the adverse environmental
impacts of cooling water intake structures.  In 2002, EPA will propose a rule for existing facilities and
promulgate a final rule for new facilities.

       The Agency continues to emphasize control of wet weather sources of pollution from combined
sewer overflows CSOs, sanitary sewer overflows SSOs and storm water, and will focus greater attention
on the impacts of contaminated sediment.  Sewer overflows result in thousands of discharges of raw
sewage annually and municipal point sources are a leading source of water quality impairment generally.
Nationally, urban runoff and storm sewers are a leading cause of impairment in estuaries, lakes, and rivers
surveyed by states. Implementing cost-effective wet weather programs will pose new challenges for EPA,
states, cities, and industry -- both technologically and financially.  To assist with the financial challenges
for 2002, the Agency is requesting $450 million for state Sewer Overflow Control Grants to address CSO
and SSO problems as authorized by the Consolidated Appropriations Act of 2000.  The Consolidated
Appropriations Act of 2000 provides the ability to better target funds to the communities with the greatest
CSO and SSO needs, and to give priority to financially distressed communities. For 2002, EPA requests
authority to disburse the funds directly to states using the CWSRF allotment formula, in order to quickly
address CSO and SSO problems. A new allocation formula will be developed for FY 2003. The Agency
will set aside up to 1 l/z percent of these grants to address CSO and SSO problems on Tribal lands. States
may allow communities to use loans from the CWSRF for required grant matching funds.  States may also
use the four percent set-aside authorized in the Consolidated Appropriations Act of 2000 for fiduciary
management including proj ect construction and completion oversight. The Agency plans to fund program
development and administration using the  one percent  set-aside authorized in the Consolidated
Appropriations Act of 2000.
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       During 2002, the Agency expects to continue implementing the regulations to control storm water
from municipalities, industries and construction sources, to have approximately 900 CSO communities,
covered by NPDES permits and implementing controls based on EPA's CSO policy as required by the
Consolidated Appropriations Act of 2000, and to issue modifications to the NPDES regulations to clarify
capacity, management, operation and maintenance, and reporting requirements on  unauthorized SSOs
discharging into U.S. waters. The Agency will also support loadings reductions by helping states and
municipalities integrate their water quality standards and CSO controls.

       EPA will continue efforts to deliver decision support tools and alternative, less costly wet weather
flow control technologies for use by local decision makers involved in community-based watershed
management.   Wet weather flow discharges can pose significant risk to  both  human health and
downstream ecosystems. Effective watershed management strategies and guidance for wet weather flow
dischargers are key priority areas remaining to assure clean water and safe drinking water. To that end, the
Agency will again this year focus  on wet weather-related applications for grants authorized under the
Clean Water Act section 104(b)(3) for research, investigations, training, demonstrations and studies aimed
at reducing water pollution.

       The Agency is implementing a multi-year strategy to address how it will minimize environmental
and public health impacts from AFOs over the next decade and beyond.  EPA is working with states to
develop and issue permits for all concentrated animal feeding operations (CAFOs) greater than 1,000
animal units and is working to update 25 year old regulations covering CAFO permitting. These permits
are issued by EPA and the states.  In addition, EPA will work with states and the U.S. Department of
Agriculture to assist all AFO facilities in developing comprehensive nutrient management plans.

       In 1998, the Office of Inspector General identified the NPDES permit backlog as a candidate for
material weakness under FMFIA. The backlog in EPA-issued permits had tripled over the past 10 years;
and the backlog in state-issued permits had doubled over this time.  To address this issue, a multi-year
backlog reduction plan has been developed and is being implemented. The plan calls for better defining
the backlog, streamlining the program, and providing technical support and training to Regions and states.
In 2002, EPA has established a target for the backlog of current permits for major point sources at  10
percent, which is an improvement from 28% in May 1999.

       EPA provides financial assistance through the CWSRF program  for the construction  of
wastewater treatment facilities and implementation of nonpoint source and estuarine management plans.
For 2002, the Agency is requesting $850 million for the Clean Water State Revolving Fund. Federal
capitalization of the 51 state funds is critical to support point and nonpoint source  programs to reduce
pollutant discharge levels.  The effective and efficient operation of state programs are critical to the
success of the national SRF programs.

       The CWSRF investment will help fulfill the Agency's commitment to capitalize the CWSRF in
order for state SRFs to provide an average of $2 billion in annual financial assistance even after Federal
capitalization grants end. More than $ 18 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
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loans since  1987,  reflecting loan repayments,  state  match dollars, and other funding sources, is
approximately $34 billion, of which more than $30 billion has been provided to communities as financial
assistance. As of June 30,2000 $3.4 billion remains available for loans.

       The dramatic progress made in improving the quality of waste water 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.

       In addition, the  Agency requests continuation of authority provided in the 1996 Safe Drinking
Water Act (SDWA) Amendments which allows states to transfer an amount equal up to 33 percent of
their Drinking Water State Revolving Fund (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. Unless extended, the
transfer provision expires September 30,2001.

       CWSRF and DWSRF funding are 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.  The SRFs continue to play a key role as
communities address their aging infrastructure, increases in population and new treatment needs.  In
addition, increases in population and new treatment demands are staining financial resources. In a June,
2000 study EPA estimated that, without improved wastewater treatment, population growth by the year
2016 will produce effluent loading similar to those of the mid-1970s.  The Agency is committed to
fostering a constructive  dialogue over the best approaches to assuring that critical water infrastructure is
maintained and improved  so that Americans can enjoy clean and safe water for many years to come. In
addition, the Agency is continuing to broaden its Clean Watersheds Needs  Survey to include more
location specific and nonpoint source pollution controls information, and to support the states in making
CSO and SSO project funding decisions.

       On a national scale, States report that leading sources of pollution include urban runoff and storm
sewers, agriculture, and municipal point sources.  Other sources cause water pollution problems on a site
specific basis. Point-source pollution has been so greatly reduced, that now non-point sources are the
leading cause of water pollution.

       The agency also provides technical assistance to support community needs. These efforts include
dissemination of information on wastewater technologies, enhancement of community awareness of
financing programs and assistance with program development activities, and, with the Office of Research
and Development (ORD) support, the establishment of an Environmental Technology Verification Center
to address control technologies for nonpoint source urban wet weather flows, and wastewater treatment
systems for small communities. The agency also provides  community technical  assistance through our
sponsorship and work with the National Environmental Training Center for Small Communities, the Rural
Community Assistance Program, and the  National Small Flows  Clearinghouse.  A water efficiency
program helps communities become aware of, and reduce, their rates of water use.
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       To improve public health and water quality in Indian Country, the Agency proposes to continue
the 1 1/2% set-aside of the CWSRF for wastewater grants to tribes as provided in the Agency's 2001
appropriation.  More than 70,000 homes in Indian country have inadequate or nonexistent wastewater
treatment. EPA and the Indian Health Service estimate tribal wastewater infrastructure needs exceed $650
million.

       In addition to the CWSRF program, the Agency's water program is responsible for managing
Water Quality Cooperative Agreements and the Section 106 grants which directly support state and tribal
efforts to reduce point source loadings. The Agency continues to manage the construction grants close-out
process and expects by the end of 2002 to have achieved success in closing out all but  13 pre-1992
projects. The program also provides grant assistance for environmental protection for Alaska Rural and
Native Villages and Indian Tribes, and manages grant  assistance for 476 wastewater treatment projects
with total appropriations of nearly $3.5 billion.

       The 2002 request includes $34.9 million for the wastewater and water infrastructure projects in
Alaska rural and Native Villages.

       EPA does not regulate septic systems.  However, poorly-sited and maintained systems pose a risk
to drinking wells and surface water, drinking water supplies, home basements, yards,  shellfish beds,
aquatic life and the supporting ecosystem. Properly managed septic, or "on-site-decentralized wastewater
systems", are an important part of the nation's wastewater treatment infrastructure, and the water program
is addressing  the challenges  of effective system management through publication of  voluntary
management standards that states may adopt and municipalities may implement.

       According to States, pollution from nonpoint sources remains the single largest cause of water
pollution, with agriculture identified as a leading cause of impairment in 25% of the river miles surveyed.
In order to meet this objective and restore and maintain  water quality, significant loading reductions from
nonpoint sources (NPS) must be achieved. Because EPA does not have direct authority to regulate NPS
under the Clean Water Act, State NPS programs are critical to our overall success.  EPA will continue to
provide Section 319 non-point source grants to states for on-the-ground projects and, also, to  encourage
States to provide CWSRF funding for high priority projects that address nonpoint source  and estuary
projects.

       In order to reduce nonpoint source related water quality impacts, EPA has been working with the
States  to strengthen their nonpoint source management programs.  All States have now  completed
upgrading then- management programs and are in the process  of implementing these programs.  To
facilitate this effort, EPA and ASIWPCA will continue the State/EPA nonpoint  source management
partnership to help States identify and meet then- technical and programmatic needs.

       Under the  Coastal Zone Act Reauthorization Amendments (CZARA) 6217(g) program, Coastal
states are engaged in a similar  process of completing and implementing their coastal nonpoint source
management programs. These programs were conditionally approved by EPA and NOAA in 1998 and to

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date, only four out of 29 states have completed this process.  EPA and NOAA are working in partnership
with the coastal states to fully approve these programs before the conditional approvals expire. EPA and
NOAA  support the integration of states' nonpoint source management programs and their coastal
nonpoint source management programs.

       EPA's nonpoint source program provides program, technical, and financial assistance to help
states and tribes implement programs to control various forms of runoff.  While agricultural sources are
the most significant category of nonpoint source runoff, state NPS programs address all categories of NFS
runoff with a mix of voluntary and state regulatory approaches. These state programs are the primary
means for achieving  nonpoint source load reductions called for in Total Maximum Daily Loads
(TMDLs).  EPA will work with states to facilitate using Clean Water Act Section 319 funds  and the
CWSRF to implement state TMDLs. EPA's nonpoint source program works closely with a number of
other Federal agencies to help reduce runoff and encourage private sector partnerships to spur voluntary
adoption of NPS controls, m 2002 and on a continuing basis, new tools, best management practices, and
NPS and contaminated sediment control strategies will need to be developed in cooperation with States,
tribes, other Federal agencies and the private sector.

       Tribal participation in the Nonpoint Source Control Program under CWA section 319(h) has
steadily increased. The number of tribes receiving 319(h) grants has risen from two in 1991 to over thirty
in 2001. Sixty-five tribes have met the eligibility requirements to receive 319(h) program grants. This
number is expected to increase annually as more of the 564 federally recognized tribes become eligible to
participate in the 319(h) program.  EPA conducts several tribal workshops every year with the primary
objective of increasing the number of tribes which are program eligible.  Due to increasing demand for
limited tribal grant funds, EPA supports continued elimination in FY 2002 of the current statutory ceiling
on the percentage of Section 319 grant funds that may be awarded to tribes/tribal consortia for nonpoint
source activities.

       Section 319 grants will be targeted to support implementation of States' priority NPS and
watershed protection  activities such as  Watershed Restoration Action Strategies,  including those
implementation actions necessary to support NPS management and controls specified in TMDLs.

       The Agency will  continue efforts to assess the risks associated with and reduce atmospheric
deposition of pollutants, particularly nitrogen and mercury, using both Clean Water Act and Clean Air Act
authorities. To address air deposition, the Agency has established  a cross-media team to plan and
implement strategies. As a result, water quality protection is considered in regulatory development under
the Clean Air Act, in air research, and in the focus of partnerships with local communities. Air deposition
is being addressed Agency-wide as an ecosystem problem with health, environmental, and economic
impacts. EPA will continue to encourage greater air deposition monitoring, as well as continue to support
State TMDLs and other tools that address impacts to water quality.

       Research
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       Effective watershed management strategies and guidance  for Wet Weather Flow (WWF)
discharges is one of the priority areas to ensure clean water and safe drinking water. Pollution from urba
and rural non-point sources during and after rainfalls is now one of the largest causes of water pollution.
This degradation of water quality poses significant 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. Storm-generated, high flow rates can exacerbate ecological upsets
and can cause significant physical damage to streams. EPA will continue to develop and validate effective
watershed management strategies for controlling WWFs, especially when they are high volume and toxic.
This research will also develop and provide effective evaluation tools necessary to make timely and
informed decisions on beach advisories and closures.

       Due to the high cost of employing currently available technology, solutions to WWF control are
difficult to implement.  Research will emphasize pollution prevention strategies, primarily through the
investigation of best management practices (BMPs), to avoid or niinirnize  the generation of WWF
contaminations. EPA will also conduct research to develop decision support tools to evaluate and verify
improved watershed management strategies. Watershed management research will investigate techniques
for reclaiming storm water and defining the conditions when secondary uses are both desirable and
economically possible. This program is designed to promote "community-based" decisions by developing
decision support tools and alternative WWF control technologies for use by local decision makers
involved in watershed management and pollution control.

        Research will also focus on the growing evidence of the risks 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 sources (e.g., sanitary sewer  overflows,
combined sewer overflows, and  storm water) and non-point sources  (e.g.,  animal feedlots and
malfunctioning  septic tanks).   In FY 2002, the beaches research program will  continue to develop
monitoring and risk communication alternatives in order to provide water quality managers with tools to
make timely and informed decisions on beach advisories and closures following wet weather flow events
into  public recreational water areas.  Improved indicators and exposure pattern data are  needed for
epidemiology studies in order to establish the link between water quality indicators and the level of
exposure to pathogenic disease end points.
FY 2002 Change from FY 2001 Enacted

EPM

•      (-14.0  FTE) EPA will  reduce  FTE  in  the  areas of effluent guideline  development,  SRF
       management, and point source reduction efforts.

•      (+5.0 FTE) This increase will support management of existing grants programs, as well as the new
       sewer overflow control grants program.
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       (+$1,656,500) This increase reflects the an increase in workforce costs including workforce costs
       to support grants management.

       (-$19,065,200) The FY 2002 request is $19,065,200 below the FY 2001 Enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are not
       included in the FY 2002 President's request.
       (-$497,030,000) This change is due to shifting resources in the FY 2001 Enacted Budget from the
       Clean Water SRF. The request of $850 million is consistent with achieving the long standing goal
       for the CWSRF to revolve at an average of $2 billion per year after Federal capitalization grants
       end.  To date, more than $ 18 billion has been appropriated in capitalization grants. This amount,
       combined with state matching and leveraging, has allowed the SRFs to provide over $30 billion
       in financial assistance to communities.

       (+$450,000,000) This increase is for new sewer overflow control grants to  address Combined
       Sewer Overflows (CSOs) and Sanitary Sewer Overflows (SSOs). Many sewer overflows result in
       the release of raw sewage to  the nation's waters and municipal point sources are a significant
       source of water quality impairment generally.

       (-$216,855,600) The FY 2002 Request is $216,855,600 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which are not
       included in the FY 2002 President's request.
       Research

 &T
       (-$1,945,700) The FY 2002 Request is $1,945,700 below the FY 2001 Enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are not
       included in the FY 2002 President's Request
Annual Performance Goals and Performance Measures

Biosolids and Beneficial Reuse

In 2001    Increase the beneficial use of the approximately 7 million dry weight tons of biosolids produced
          each year.

In 2000    50% of biosolids are beneficially reused.

In 1999    50% of biosolids are beneficially reused.

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Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
POTWs beneficially reusing all or a part
of their biosolids and, where data exists,
the percent of biosolids generated that
are beneficially reused.                        50                      55          55          % biosolids

Baseline:    An estimated 50% of biosolids are being beneficially reused.

Reducing Industrial Pollutant Discharge

In 2002     Industrial discharges of pollutants to the nation's waters will be significantly reduced through
            implementation of effluent guidelines.

In 2001      Industrial discharges of pollutants to the nation's waters will be significantly reduced through
            implementation of effluent guidelines.

In 2000     Industrial discharges of pollutants to the nation's waters  were significantly reduced through
            implementation of effluent guidelines.
Performance Measures:
FY1999  FY2000
Actuals   Actuals
            FY2001
            Estimate
              FY2002
              Request
Reduction in loadings for toxic pollutants
for facilities subject to effluent guidelines
promulgated between 1992 & 2000, as predicted by
model projections, (cumulative)

Reduction in loadings for
conventional pollutants for facilities
subject to effluent guidelines promulgated
between  1992 & 2000, as predicted by model
projections, (cum)

Reduction in loadings for non-conventional
pollutants for facilities subject to effluent
guidelines promulgated between 1992 and
2000, as predicted by model projections, (cum)
             3.8
           9.8 million     10.5 million   pounds
            472.7     552.7 million    572 million   pounds
             135.6      935.6 million  1,007 million  pounds
Baseline:    Flow data is not available for some point sources in PCS.  EPA will model loadings from permits
            issued based on effluent guidelines promulgated between 1992 and 1999.

NPDES Permit Requirements

In2002     Current NPDES permits reduce or eliminate discharges into the nation's waters of(l) inadequately
            treated discharges from municipal and industrial facilities; and (2) pollutants from urban storm
            water, CSOs, and CAFOs.

In 2001     Current NPDES permits reduce or eliminate discharges into the nation's waters of (1) inadequately
            treated discharges from municipal and industrial facilities; and (2) pollutants from urban storm
            water, CSOs, and CAFOs.
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In 2000     Current NPDES permits reduced or eliminated discharges into the nation's  waters  of(l)
            inadequately treated discharges from municipal and industrial facilities; and (2) pollutants from
            urban storm water, combined sewer overflows (CSOs), and concentrated animal feeding operations
            (CAFOs).

In 1999     Quantified the number of AFOs that were permitted by EPA and states and the extent the permits
            included manure management requirements.

In 1999     It was determined that developing a national inventory of AFOs and estimates of pollutant loadings
            was not feasible since there are as many as 450,000 AFOs and rapid changes are occurring in a
            number of facilities.

In 1999     Cannot determine # of industrial and construction stormwater sources. Can determine # of states
            that issue permits. For all industrial activities operating in the state, 92% of states and territories
            and for construction sites over 5 acres, 88% of states and territories have current permits.

In 1999     An assessment of necessary elements of a comprehensive general permit has been developed to aid
            Regions and States in issuing permits to concentrated animal feeding operations;

In 1999     830 CSO communities (92%) are covered by permits or other enforceable mechanisms consistent
            with the 1994 CSO policy. (Note: this result may reflect overcounting and implementation of only
            portions of the CSO Policy.)

In 1999     71 % of major point sources are covered by current NPDES permits.

In 1999     513 communities implemented requirements in Stormwater Phase I permits (MS4s) and / or CSO
            Long Term Control Plans (LTCPs) that are anticipated to contribute to improvements in their local
            watersheds.
Performance Measures:
Major point sources are covered
by current permits.

States with current storm water permits
for construction sites over 5 acres.

States with general NPDES permits for
CAFOs > 1,000 animal units or with
individual NPDES permits for all
CAFOs > 1,000 animal units consistent
with the AFO Strategy and guidance.

Comprehensive methodology developed
for documenting pollutants removed
through increased SSO, CSO and
storm water treatment, and increased
wastewater treatment to secondary
or better standards.

Permittees (among the approximately 900
CSO communities nationwide) that are
FY 1999
Actuals
FY2000
Actuals
            72
            89
            48
FY2001
Estimate
            89%
            100
FY2002
Request


90%


100
                        point sources
                        % states
            100
                        % states
                                               methodology
                                                   11-79

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covered by NPDES permits or other
enforceable mechanisms consistent with
the 1994 CSO policy.                         92          90

States with current general NPDES
permits for CAFOs or with individual
NPDES permits for all CAFOs

Comprehensive methodology tested for
documenting pollutants removed through
increased SSO, CSO and storm water
treatment, and increased wastewater
treatment to secondary or better standards.

Minor point sources are covered by
current permits.                                          70

States with current storm water
permits for all industrial activities
operating in the state,                                     83

Completion of AFO documents.                1

Inventory of Animal Feeding
Operations/estimate loadings.                  0

Quantity of AFOs which are permitted          1

Major point sources that have a
current NPDES permit.                        71

Communities that will have local
watersheds improved by controls on CSOs
and stormwater                              513

Facilities w. a discharge requiring an
indiv. permit that a) are covered by a
curr. indiv. NPDES perm.; b) have expir.
perm.; c) have applied but not been issued
a perm.; & d) have perm, under appeal

Storm water sources assoc. with
indust. activity, construction sites
over 5 acres, and desig. storm water
sources (incl. municipal Phase I)
that are covered by a current indiv. or
gen. NPDES permit.                          Not available
100
100
            100
66%
100%
73%
90%
% permittees
            % states
methodology


point sources



% states

document


inventory

list


% rnaj.ptsrcs



communities
            % SW sources
Baseline:    As of May 1999,72% of major point sources and 54% of minor point sources were covered by
            a current NPDES permit. At the end of FY99,53 of 57 states/territories had current storm water
            permits for all industrial activities, and 50 of 57 had current permits for construction sites over
            5 acres. In June 1999,74% of approximately 900 CSO communities wre covered by permits or
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            other enforceable mechanisms consistent with the 1994 CSO Policy. As of December 1999,
            approximately 14 states had current NPDES general permits for CAFOs and at least another 13
            had issued one or more individual NPDES permits for CAFOs.
Construction Grant and Special Project Closeout

In 2002     Reduce point source loadings by expediting completion of projects funded under Clean Water
            Act Title II (construction grants) and special project STAG grants.

In 2001     Reduce point source loadings by expediting completion of projects funded under Clean Water
            Act Title II (construction grants) and special project STAG grants.

In 2000     Reduced point source loadings by expediting completion of projects funded under Clean Water
            Act Title II (construction grants) projects and special project State and Tribal Assistance Grants
            (STAG).
In 1999     340 construction grants projects remain to be closed out.

Performance Measures:
FY1999
Actuals
FY2000
Actuals
Construction grants projects
awarded after FY91 closed out within
7 years of grant award.

Construction grants projects awarded
before FY92 remaining to be closed out.

Construction grants projects (both those
awarded before FY92 and after FY91)
remaining to be closed out.

Special project STAG grants closed out
within 7 years of grant award.
             175
FY2001
Estimate
                        90
            45
FY2002
Request
                        90
            13
340
                        % grants
            projects
                                    projects
                         90
                        90
                        % grants
Baseline:    As of September 1998,439 construction grants projects remained to be closed out, according to
            biannual reports from the Regions.  As of September 1998, three special project STAG grants
            had been closed out according to  biannual reports submitted by the EPA Regions to EPA
            Headquarters.  Special project STAG grants were first established in 1994.
Effluent Guidelines

hi 2002     Take final action on 2 and propose 3 effluent guidelines limitations for industrial categories that
            contribute significantly to pollution of surface waters.

In 2002     Take final action on 1 and propose 1 rule to reduce the damage to the aquatic environment
            caused by cooling water intakes.

In 2001     Take final action on 2 and propose 2 effluent guidelines limitations for industrial categories that
            contribute significantly to pollution of surface waters.
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In 2000
In 1999
Took action  on effluent guidelines  limitations for industrial  categories that contribute
significantly to pollution of surface waters.
Took final action  on one and proposed two effluent guidelines limitations for industrial
categories that contribute significantly to pollution of surface waters.
Performance Measures:


Effluent guidelines proposed or promulgated

316(b) regulations proposed or promulgated

Baseline:    Baseline is not applicable since these are new effluent guidelines.
FY 1999
Actuals
2/1

FY2000
Actuals
1/4

FY2001
Estimate
2/2

FY2002
Request
3/2
1/1

rules
rules
Pretreatment Program Audits
In 2002
In 2001
Prevent pass through  of pollutants to sludge and the nation's waters and protect POTW
operations by auditing all approved pretreatment programs over a 5-year period to ensure that
1500 effective pretreatment programs control over 30,000 significant industrial dischargers. .

Prevent pass through  of pollutants to  sludge and the nation's waters and protect POTW
operations by auditing all approved pretreatment programs over a 5-year period to ensure that
1500 effective pretreatment programs control over 30,000 significant industrial dischargers.
In 2000     25% of approved pretreatment programs were audited in FY 00

In 1999     20.5% of approved pretreatment programs were audited in FY99 and approximately 80% of
            pretreatment programs were audited over the previous 5 years.
Performance Measures:
Approved pretreatment programs
audited in the reporting year.  Of those,
the number of audits finding significant
shortcomings and the number of local
programs upgraded to achieve compliance.
                                FY 1999
                                Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
                                            332
            100%
            100%
            over 5 years
Baseline:    At the end of FY99,1,360 audits had been conducted since October 1,1994. There are 1,369
            pretreatment programs; however, some of the programs were audited more than once.
Clean Water State Revolving Fund: Annual Assistance

In 2002     Reduce point and nonpoint source loadings by managing the $30 billion in CWSRF assets to
            encourage use of state funds for state high-priority projects.

In 2002     700 projects funded by the Clean Water SRF will initiate operations, including 400 projects
            providing secondary treatment, advanced treatment, CSO correction (treatment), and/or storm
            water treatment. Cumulatively, 7,900 projects will have initiated operations since program
            inception.
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In 2001      Reduce point and nonpoint source loadings by managing the $30 billion in CWSRF assets to
            encourage use of state funds for state high-priority projects.

In 2001      700 projects funded by the Clean Water SRF will initiate operations, including 400 projects
            providing secondary treatment, advanced treatment, CSO correction (treatment), and/or storm
            water treatment. Cumulatively, 7,200 SRF funded projects will have initiated operations since
            program inception.

In 2000      Effectively implemented the Clean Water State Revolving Fund (CW  SRF) program to ensure
            annual assistance of approximately $2 billion.

In 1999      41 states and Puerto Rico conducted separate annual audits of their SRFs.

In 1999      30 states met "pace of the program" measures for loan issuance and pace of construction.
Performance Measures:
CW SRF projects that have initiated
operations (cumulative).

States that are using integrated planning
and priority systems to make CW SRF
funding decisions (cumulative).

States that meet or exceed "pace of the
program" measures for loan issuance
and construction (cumulative).

States and Puerto Rico that conduct
separate annual audits of their CW SRFs

National CWSRF Federal Return on
Investment, as measured by cumulative
assistance disbursed divided by cumulative
federal outlays. (Base of $1.73 in 1999)

National CWSRF loans as a percentage
of funds available, as measured by the ratio
of cumulative loan agreement dollars to the
cumulative funds available for loans.
(base of 87.5% in 1999)

EPA will report to Congress on the
pace of me Clean Water State Revolving
Fund Program.
FY 1999
Actuals
FY 2000
Actuals
30
41
20
42
FY 2001
Estimate
                        7,200
                         17
35
45
FY2002
Request
                        7,900
                         18
                        SRF projects
                        states
            states
            states
                                    $1.90
                                    ratio
                                    90%
            1
            1
                                    ratio
                                                 report
Baseline:    The Agency's National Information Management System (NIMS) shows, as of July 1998, 39
            states/territories were conducting separate annual audits of their SRFs and utilizing fund
            management principles. NIMS shows, as of June 1998,25 states were meeting the ""pace of
            the program"" measures for ban issuance, pace of construction, and use of repayments. As of
            September 1998, 8 states were using integrated  planning and priority systems to make SFR
            funding decisions, NIMS shows 3,909 SRF projects initiated as of June 1998.
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Improving Wastewater Sanitation in Indian Country

In 2002     Increase protection of human health in Indian Country by providing adequate wastewater
            sanitation to more of the 71,028 homes in Indian Country with inadequate wastewater
            sanitation systems.

In 2001     Increase protection of human health in Indian Country by providing adequate wastewater
            sanitation to more of the 71,028 homes in Indian Country with inadequate wastewater
            sanitation systems.

In 2000     Reduced, by 6%, the number of horn es in Indian Country with inadequate wastewater sanitation
            systems.

Performance Measures:                        FY1999    FY2000    FY2001     FY2002
                                            Actuals      Actuals      Estimate     Request

Homes in Indian Country whose residents
are provided with adequate wastewater
sanitation systems though funding from
the CW SRF Tribal Set Aside Program
(cumulative).                                               6            9          13       % homes

Baseline:    Annual reporting established in FY 1998 by EPA and the Indian Health Service shows 71,028
            homes in Indian Country without adequate treatment.
Wastewater Treatment Facility Compliance

In 2002     Protect human health and avoid increased point source loadings by helping the approximately
            17,000 small U.S. wastewater treatment systems to maintain permitted performance levels.

In 2001     Protect human health and avoid increased point source loadings by helping the approximately
            17,000 small U.S. wastewater treatment systems to maintain permitted performance levels.

In 2000     872 Wastewater treatment facilities prevented from going into CWA non-compliance or
            assisted in moving toward compliance through assistance under CWA Section 104(g).

Performance Measures:                        FY 1999    FY2000     FY2001     FY2002
                                            Actuals      Actuals      Estimate     Request

Wastewater treatment facilities
maintaining permitted performance
levels through assistance under
 Section 104(g) of the CWA.                                 872         744         775       facilities

 Baseline:    In 1998, 890 facilities were assisted to improve, maintain, or achieve compliance.
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Wastewater Treatment

In 2002     Reduce human health risks and nonpoint source loadings from the approximately 11 million
            failing septic systems that pollute drinking water supplies, playgrounds and beaches, back up
            into homes and damage shellfish and other aquatic life.

In 2001     Reduce human health risks and nonpoint source loadings from the approximately 11 million
            failing septic systems that pollute drinking water supplies, playgrounds and beaches, back up
            into homes and damage shellfish and other aquatic life.

In 2000     Another two million people are receiving the benefits of secondary treatment of wastewater, for
            a total of 181 million people.

In 1999     Another 3.4 million people received the benefits of secondary treatment of wastewater, for a
            total of 179 million.
Performance Measures:
States which adopt the Voluntary
Management Standards Program for
On-site Wastewater Treatment Systems,

CW SRF projects that have initiated
operations (cumulative).

Additional people who will receive the
benefits of secondary or better treatment
of wastewater
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
                                                states
5.4
            6,519
2.07
                                    SRF projects
                        M People
Baseline:    The Agency's National Information Management System shows 3,909 SRF projects initiated as
            of June 1998.

Wet Weather Project Grants

In 2002     Reduce point source loadings by providing wet weather project grants authorized by the Wet
            Weather Water Quality Act of 2000.
Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY 2001
Estimate
FY 2002
Request
Wet Weather Grants program developed
and guidance including priority project
criteria published.

Baseline:    Baseline is not applicable since these are new wet weather grant guidelines.
                                                guidance
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Reducing Nonpoint Source Pollution

In 2002     Reduce nonpoint source sediment and nutrient loads to rivers and streams.

In 2001     Reduce nonpoint source sediment and nutrient loads to rivers and streams.

In 2000     49 States upgraded their nonpoint source programs, to ensure that they are implementing
            dynamic and effective nonpoint source programs that are designed to achieve and maintain
            beneficial uses of water.

In 1999     In support of the Clean Water Action Plan, 11 additional states have upgraded their nonpoint
            source programs, to ensure that they are  implementing dynamic and effective nonpoint source
            programs that are designed to achieve and maintain beneficial uses of water.
Performance Measures:
AFOs for which Comprehensive
Nutrient Management Plans (CNMPs)
are developed (cumulative).

Clean Water SRF loaned for projects to
prevent polluted runoff.

Number of coastal States and Territories
with folly approved coastal nonpoint
pollution control programs under the
Coastal Zone Act Reauthorization
Amendments of 1990. (cumulative)

Number of States and Territories reporting
data on their ongoing progress in
 implementing their nonpoint source
programs, including geo-location of projects
and load reduction estimates.

Clean Water SRF loaned for projects to
prevent polluted runoff (annual)

EPA approvals of state submitted upgraded
nonpoint source programs (incorporating
the 9 key elements outlined in national
Nonpoint Source Program and Grants
Guidance for FY97 and Future Years).
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
                        5%
                        10
FY2002
Request
                        10%
                        AFOs
                                    % CW SRF
                                    18
                                    states/tribes
                                    56
                                    200
                                    states/tribes
                                     M dollars
11
49
                        states
Baseline:    No CNMPs have yet been developed. As of September 1998,24 states were funding nonpoint
            and estuary projects with their SRFs.
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Verification and Validation of Performance Measures

Goal2, Objective 3:

Performance Measure:  Major Point sources are covered by current permits; Minor Point
Sources are covered by current permits.

Performance Database: The Permits Compliance System (PCS) will be used to determine which
permits have not exceeded their expiration dates.

Data Source: Regions and States will enter data into PCS.

QA/QC Procedures:  HQ  will review data submitted by States and ensure that the data are used to
update PCS. The Office of Water (OW) has generated State-by-State reports listing what appears in
PCS for key data fields for facilities and discharge pipes (name,  address, Standard Industrial Code
(SIC), lat/long, Hydrologic Unit Code (HUC), reach, flow, issuance date, expiration date, application
received date, effective date,  etc.).  These reports were distributed in January to State and Regional
PCS, National Pollutant Discharge  Elimination System (NPDES), and Geographic  Information
Systems (GIS) coordinators  to allow States to "see what we see" when  we view PCS data.  If
discrepancies exist between State and PCS data, OW will identify and make corrections in PCS, where
necessary. Additionally, many States have been collecting and verifying NPDES data on their own,
but maintain these data in separate State-level  systems  (electronic and hardeopy). EPA hopes to
populate fields in PCS that  are currently blank where data exist at  the State level.

Data Quality Review: OIG audits 8100076 (3/13/98) and 8100089 (3/31/98) discussed the need for
current data in PCS. OW will be categorizing the form in which the data exist at the State level (e.g.,
currently in PCS, currently in a separate State system, currently in hard copy  only). As EPA creates a
picture of national NPDES data availability, staff will work with individual States and Regions to tailor
approaches to getting key data into PCS. OW will offer data upload, data entry, and, if necessary, data
compilation support to States and anticipates completion of the project by the end of the calendar year.

Data Limitations:  There are significant data gaps for minor facilities and discrepancies between State
databases and PCS.

New/Improved Data or Systems:  EPA Headquarters is providing contractor assistance to improve
PCS data quality. By 2003, PCS is scheduled to be modernized to make it easier to use and to ensure
that it includes all needed data to manage NPDES programs.

Performance Measure:   Clean Water State Revolving Fund (CWSRF)  projects that have
initiated operations.
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Performance Database:  Clean Water State Revolving Fund National Information Management
System

Data Source: Reporting by municipal and other facility operators. Entry by state regulatory agency
personnel and EPA Regional staff. Collection and reporting once yearly.

QA/QC Procedures: Headquarters is responsible for collecting and compiling the data, and querying
Regions as needed. Regions are responsible for collecting the data from their client states and reporting
the data to HQ once yearly,

Data Quality Review: EPA Headquarters and Regions annually review the data submitted by states.

Data Limitations: None

New/Improved Data or Systems: This system began as of 1996. It is updated on a continuous basis,
and database fields are changed or added as needed.

Performance Measure:  Reduction in Loadings for toxic  pollutants,  as predicted by model
projections, for NPDES permitted facilities subject to effluent guidelines promulgated between
1992 & 2000;   Reduction in loadings for  conventional pollutants, as predicted by model
projections, for NPDES permitted facilities subject to effluent guidelines promulgated between
1992 & 2000; Reduction in loadings for non-conventional pollutants,  as predicted by model
projections, for NPDES permitted facilities subject to effluent guidelines promulgated between
1992 & 2000.

Performance Database: The numbers of permits issued in appropriate industrial categories are from
the Permit Compliance System (PCS). These numbers are then put into the effluent guidelines model
to determine the loading reductions.

Data Source: Regions  will pull from PCS the numbers of permits issued based on appropriate
Standard Industrial Codes (SIC).

QA/QC Procedures: Regions are responsible for determining which of the permits issued fall into the
appropriate Industrial effluent guideline categories. Headquarters will calculate the loadings based on
the Effluent Guidelines development data.

Data Quality Review: DIG audits 8100076 (3/13/98) and 8100089 (3/31/98) mentioned the need for
current data in PCS.  As discussed above under point sources covered by current permits, OW has a
project underway to  improve PCS data quality for key data fields for facilities  and discharge pipes
(name, address, SIC, lat/long, HUC, reach, flow, issuance date, expiration date, application received
date, effective date, etc.), which is scheduled to be completed by the end of the year.


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Data Limitations: Flow data in PCS is not complete, so it must be supplemented with Effluent
Guidelines development data. The effluent guidelines model provides loading assumptions based on
the data collected to develop the guidelines. The numbers of facilities are multiplied by the loading per
facility as predicted by the model.

New/Improved Data or Systems:  EPA Headquarters is providing contractor assistance to improve
PCS data quality. By 2003, PCS is scheduled to be modernized to make it easier to use and to ensure
that it includes needed data.
Coordination with Other Agencies

National Pollutant Discharge Elimination System Program (NPDES)

       Since inception of the NPDES program under Section 402 of the Clean Water Act, EPA and
the authorized states have developed  expanded relationships  with various federal  agencies to
implement pollution controls for point sources. EPA works closely with the Fish and Wildlife Service
and the National Marine Fisheries Service on consultation for protection of endangered species through
a Memorandum of Agreement. EPA works with the Advisory Council on Historic Preservation on
National Historic Preservation Act implementation.  EPA and the states rely on monitoring data from
the U.S. Geological Survey (USGS) to help confirm pollution control decisions.  The Agency also
works closely with the Small Business Administration and the Office of Management and Budget to
ensure that regulatory programs are fair and reasonable. The Agency coordinates with the National
Oceanic and Atmospheric Administration (NO AA) on efforts to ensure that NPDES programs support
coastal and national estuary efforts; and with the Department of Interior on mining issues.

Joint Strategy for Animal Feeding  Operations

       The Agency is working closely with the Department of Agriculture (USD A) to implement the
Unified National  Strategy for Animal Feeding Operations finalized on March 9, 1999. The Strategy
sets forth a framework of actions that USD A and EPA plan to take, under existing legal and regulatory
authority, to  minimize water quality and public health impacts from improperly managed animal
wastes in  a  manner designed to  preserve and enhance the long-term  sustainability of livestock
production.

Clean Water  State Revolving Fund (CWSRF^

       Representatives from EPA's SRF program, Housing and Urban Development's (HUD's)
Community Development Block Grant program, and USDA's Rural Utility Service  have signed a
Memorandum of Understanding  committing to assisting state or  federal  implementers  in:  (1)
coordination  of the funding cycles of the three federal agencies; (2) consolidation of plans of action
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(operating plans, intended use plans, strategic plans, etc.); and (3) preparation of one environmental
review document, when possible, to satisfy the requirements of all participating federal agencies. A
coordination group at the federal level has been formed to further these efforts and maintain lines of
communication.  In many states, coordination committees have been established with representatives
from the three programs.

Clean Water SRF Indian Set Aside - Indian Health Service and Rural Utilities Service

       In implementation of the Indian set-aside grant program under Title VI of the Clean Water Act,
EPA works closely with the Indian Health Service to administer grant funds to the various Indian
Tribes, including determination of the priority ranking system for the various wastewater needs in
Indian Country.

       In 1998, EPA and the Rural Utilities Service of the Department of Agriculture formalized a
partnership between the two agencies to provide coordinated financial and technical assistance to
Indian Tribes.

Construction Grants Program - US Army Corps of Engineers

       Throughout the history of the construction grants program under Title II of the Clean Water
Act, EPA and the delegated states have made broad use of the construction expertise of the Corps of
Engineers to provide varied assistance in construction oversight and  administrative matters.  EPA
works with the Corps to provide oversight for construction of the special projects which Congress has
designated. The mechanism for this expertise has been and continues to be an Interagency Agreement
between the two agencies.

Nonpoint Sources

       EPA will continue to work closely with its federal partners to achieve the ambitious strategic
objective of reducing pollutant discharges, including at least 20 percent from 1992 erosion levels.
Most significantly, EPA will continue to  work with the U.S. Department of Agriculture (USDA),
which has a key role in reducing sediment loadings through its continued implementation of the
Environmental Quality Incentives Program, the Conservation Reserve Program, and the Conservation
Operations.  USD A also plays a major role in reducing nutrient discharges through these  same
programs and through newer initiatives related to the AFO Strategy. EPA will also continue to work
closely with the Forest Service and Bureau of Land Management, whose programs can contribute
significantly to  reduced pollutant loadings of  sediment, especially on the vast public lands that
comprise 29% of all land in the United States.  EPA will work with these agencies, USGS, and the
States to document improvements in land management and water quality.  Finally, EPA is teaming
with NOAA to institute and track a new annual performance goal regarding approval of States' coastal
nonpoint source control programs.
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       EPA will also work with other federal agencies to implement the Unified Federal Policy for a
watershed approach to federal land and resource management. This policy provides a foundation to
help ensure that Federal land management agencies serve as a model for water quality stewardship in
the prevention of water pollution and the restoration of degraded water resources. Implementation of
the policy will require coordination among federal agencies at a watershed scale and collaboration with
States, Tribes and other interested stakeholders.

Air Deposition

       EPA is working with NO AA, as well as with State air and water programs and National Estuary
Programs where the impacts of air deposition are of concern. EPA plans to continue to work with other
federal agencies such as USGS to  address atmospheric deposition problems.

       Research

       Research on the ecosystem effects of Wet Weather  Flows (WWFs) is divided into three
categories: 1) watershed management for WWFs; 2) control technology for drainage systems; and 3)
infrastructure improvement.  Implementation of this work  is guided by the  "Risk Management
Research Plan for Wet Weather Flows."  This research plan was peer reviewed by the Urban Water
Resources Research Council of the American Society of Civil Engineers (ASCE) and the Water
Environment Research Foundation of the Water Environment  Federation. The WWF research plan's
projects are being coordinated with projects under Section 104(b)(3) of the Clean Water Act (CWA).
This plan is also being used to coordinate relevant work being conducted by others such as the Water
Environment Research Foundation's Wet Weather Advisory Panel, the ASCE Urban Water Resources
Research Council, the U.S. Department of Agriculture, the U.S. Centers for Disease Control (CDC),
the Army Corps of Engineers (USAGE), the U.S.  Geological Survey (USGS), the Sanitary Sewer
Overflow (SSO) Advisory Committee and Urban  WWF Subcommittee,  and plus numerous other
national and international organizations that work to improve  coordination and minimize duplication
of WWF research.

       EPA has numerous WWF research projects in which we partner with other federal and state
agencies. For example, we have signed a four-year interagency  agreement (TAG) with CDC to evaluate
the feasibility of applying CDC/National Center for Infectious Diseases (NCID)-developed techniques
to determine the animal source type of Cryptosporidium oocysts found in water supplies. This is an
important facet of our source water protection research program. Once the contamination source type
is determined, subsequent investigative and corrective measures that will protect source waters can be
more focused and efficient.

       EPA has also signed a three year IAG with USAGE  at the Waterways Experiment Station
(WES) in VIcksburg, Mississippi, to develop a numerical watershed model that will predict change in
stream channels from land use change. Both organizations have an inherent interest in developing the
                                          11-91

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tools to predict such morphologic changes.  Land use changes alter stormwater runoff patterns which
upset the established equilibrium between the flow, the shape, and course of the streambed (stream
geomorphology).  Under this IAG, the USAGE will modify an existing river model to account for
erosion in small streams.

       Finally, EPA is pursuing collaborative research projects with the USGS to utilize water quality
data from urban areas obtained through their National Ambient Water Quality Assessment (NAWQA)
program. The USGS data for urban streams show levels of pesticides that are even higher than in many
agricultural area streams. These data have potential uses for identifying sources of urban pesticides.
EPA will also evaluate how the USGS data could be integrated into the GIS database system.
Statutory Authorities

Clean Water Act
Clean Air Act
Coastal Zone Act Reauthorization Amendments of 1990
Safe Drinking Water Act
Toxic Substances Control Act
Wet Weather Water Quality Act of 2000

      Research

Clean Water Act
Clean Air Act
Coastal Zone Act Reauthorization Amendments of 1990
Safe Drinking Water Act
Toxic Substances Control Act
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Goal 3: Safe Food

-------
Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 3: Safe Food	.		,	III-l
        Reduce Risks from Pesticide Residues in Food  	III-l 1
        Eliminate Use on Food of Pesticides Not Meeting Standards		,		111-21

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                             Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                         Safe Food

Strategic Goal:  The foods Americans eat will be free from unsafe pesticide residues. Particular
attention will be given to protecting subpopulations that may be more susceptible to adverse effects
of pesticides or have higher dietary exposures to pesticide residues. These include children and
people whose diets include large amounts of noncommercial foods.
                                    Resource Summary
                                   (Dollars in thousands)
                                          FY 1999
                                          Enacted
           FY 2000
            Actual
FY2001
Enacted
FY 2002
Request
Goal 03 Safe Food
$77,562.8     $83,259.7     $109,303.9    $108,245.0
Obj.Ol  Reduce Risks from Pesticide Residues      $34,389.8     $38,373.3      $44,577.4     $45,199.4
        in Food

Obj. 02  Eliminate Use on Food of Pesticides       $43,173.0     $44,886.4      $64,726.5     $63,045.6
        Not Meeting Standards

               Total Workyears                  711.3         778.7         796.9         770.9

'For proper comparison with the FY 2002 request, the historic data has been converted to be consistent with the new 2000 Strategic Plan structure. Goal and Objective resources
for FY 1999, FY 2000, and FY 2001 may therefore differ from the resources reported in the FY 2001 Annual Plan and Budget and the FY 2000 Annual Report.
Background and Context

       The U.S. Environmental Protection Agency (EPA) plays a major role in the lives of the
American public by ensuring that agricultural use of pesticides will not result in unsafe food. EPA
accomplishes this by registering new pesticide products and reviewing older pesticide products with
the goal of protecting human health and the environment from risks associated with pesticide use.
EPA uses the latest scientific information to ensure that there is "a reasonable certainty" that no harm
will result to human  health from all  combined sources of exposure to pesticides (aggregate
exposures).

       The potential risk of adverse effects to consumers from pesticide residues in foods is a
primary concern for the Agency, as is the potential bioconcentration of certain pesticides in plant and
animal tissues which may result in even higher levels of exposure.  Critical to protecting human
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health is the review of food use pesticides for
potential toxic effects such as birth defects,
cancer,  disruption of the endocrine system,
changes in fertility, harmful effects to the
kidneys,  liver,  or  nervous   system
bioaccumulation. Under the  Safe Food goal,
EPA  ensures  that any residues on food are
below established limits.
EPA's Pesticide Regulations Affect a
Cross Section of the U.S. Population

  30 major pesticide producers and another
  100 smaller producers
  2500 formitlators
  29,000 distributors and other
  establishments
  40,000 commercial pest control firms
  One million farms
  Several million industry and government
  users
  About 100 million households
       Pesticides subject to EPA regulation
include insecticides,  herbicides, fungicides,
rodenticides,  disinfectants,   plant   growth
regulators, plant incorporated protectants and
other substances intended to control pests.
Pesticides are used in agriculture, greenhouses, on lawns, in swimming pools, industrial buildings,
households, and in hospitals and food service establishments. Total U.S. pesticide usage in 1997
was 4,6 billion pounds. Biopesticides and reduced risk pesticides make up about 20 percent of the
total. Agriculture accounts for about 80 percent of all applications.  There are about 1.3 million
certified pesticide applicators in the U.S. Herbicides are the most widely used pesticides and account
for the greatest expenditure and volume.

       EPA regulates pesticides under two main statutes: the Federal Insecticide, Fungicide and
Rodenticide Act (FIFRA) and the Federal Food and Drug Cosmetic Act (FFDCA). FIFRA requires
that pesticides be registered (licensed) by EPA before they may be sold or distributed in the United
States, and that they perform their intended functions without causing unreasonable adverse effects
to people or the environment when used according to EPA-approved label directions.

       FFDCA authorizes EPA to set tolerances, or maximum legal limits, for pesticide residues
in or on food.  Tolerance requirements apply equally to domestically-produced as well as imported
food. Any food with residues not covered by a tolerance, or in amounts that exceed an established
tolerance, may not be legally marketed in the United States.

       Amendments to both FIFRA and FFDCA by the Food Quality Protection Act (FQPA) of
1996 enhances protection of children and other sensitive sub-populations.  FQPA establishes a
single, health-based safety standard for all pesticide residues. The agencywide FY 2002 request
supporting FQPA includes $ 148.8 million for EPA's work under these laws, enabling  the public to
enjoy one of the safest, most abundant, and most affordable food supplies in the world. FQPA also
enhanced  EPA's ability  to protect human health and the environment in several other ways,
including:

•      Providing for a more complete assessment of potential risks, with special protections for
       sensitive groups, such as infants and children;
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•      Ensuring that pesticides are periodically reassessed for consistency with current safety
       standards and the latest scientific and technological knowledge;

•      Educating consumers about pesticide risks and benefits; and

•      Expediting the approval of reduced risk pesticides.


Means and Strategy

       The Agency uses atwo-fold strategy for accomplishing the objectives of the Safe Food goal:

•      Encouraging  the  introduction of new,  reduced risk pesticides  (including new plant
       incorporated protectants) within the context of new pest-management practices; and

•      Reducing the use of currently registered pesticides with the highest potential to cause adverse
       health effects

       In 2002, 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 production rates.

       EPA uses its authorities  to  systematically manage the risks  of pesticide  exposures by
establishing legally permissible food-borne pesticide residue levels, or tolerances. EPA manages
the legal use of pesticides, up to and including the elimination of pesticides that present a danger to
human health and the environment This task involves a comprehensive review of existing pesticide
use as stipulated by the reregistration provision, as well as a comprehensive reassessment and update
of existing  tolerances within ten years, as required by FQPA.

       The 2002 request emphasizes efforts to evaluate existing tolerances for currently registered
pesticides to ensure they meet the new Food Quality Protection Act (FQPA) health standards. This
tolerance reassessment program screens and requires testing of certain pesticides and chemicals to
evaluate their potential for disrupting endocrine systems in animals or in humans. The emphasis will
be on balancing the need for pesticides  with the risks of exposure, and allowing for smooth
transitions to safer pesticide alternatives, through an open and transparent process that seeks input
from all stakeholders.

       EPA uses the latest scientific advances in health-risk assessment practices,  to ensure that
current pesticides meet the test of a reasonable certainty of no harm, as stipulated by FQPA. This
includes the incorporation of new scientific data relating to the effects of endocrine disruption and
the special  needs of susceptible populations such as children and Native Americans.
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       New registration actions result in more pesticides on the market that meet FQPA standards,
which brings the Agency closer to the objective of reducing adverse risks from pesticide use.
Tolerance reassessments may mean mandatory use changes because a revision in the allowable
residue levels can involve changes in pesticide application patterns, changes in the foods the

                                          Bt and Conventional Crops
                                      as a proportion of total acres (1999)
                   100r
                 | 80!

                 « 60:
                 o
                 "6 40|
                 I 20
                 I  0
                                                                             .<_->,,.-- *-—i
           	]	Field C	;	    Cptt	;  	Pota
  S Acres of Convention  TW.          ™m          ;iT"
  ;i Acres ofBt         ,          19.                    3.8          ;         0.0
  i  Total Acres (in mil   r         77.3          ~'        tci               '    iT
pesticides may be applied to, and other risk management methods. -As measured by the number of
tolerances that have been reassessed, the Agency's progress in the tolerance reassessment program
directly serves the objective of reducing the use on food of pesticides that do not meet the new
standards.
       Biotechnology is likely to be the focus of continued public scrutiny in fiscal year 2002 as it
accounts for a large share of acres planted.  For example, Bt corn and cotton made up about 25
percent of all field corn and cotton acres in 1999 (see box).  Biotechnology has great potential to
reduce our reliance on some older, more risky chemical pesticides, and to lower worker risks. Given
the public interest in foods derived from biotechnology, EPA has increased the number of public
meetings and scientific peer reviews of our policies and assessments.

    -   EPA is working closely with other federal agencies involved in biotechnology and is also
actively involved in developing international standards for the regulation of biotechnology products.
Specific  activities in FY 2002 will include: advancing  scientific knowledge  of  allergenicity;
finalizing decisions on exemptions to the plant incorporated protectant rule, which defines the type
of substances used in bioengineered plants that must undergo scientific evaluation by the Agency;
and participating in the Codex Ad Hoc Intergovernmental Task Force on Food Derived from
Biotechnology, which is working on international standards governing foods derived from
biotechnology. In addition, EPA plans to registerthreenewplantincorporatedprotectants, provided
they are found not have adverse effects on human health or the environment.
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       Finally, in addition to setting the requirements of continued legal use of agricultural
pesticides, EPA works in partnership with USDA, FDA and the states toward the broader effort to
prevent the misuse of pesticides.  In the ever changing environment of pesticide use, accessibility
to information is a primary component of an effective strategy to inform the public on the
appropriate, safe use of pesticides to minimize risk.

       More information about EPA's food safety efforts is available on the Agency's website at
http://www.epa.gov/pesticides.

       Research

       Current approaches to human health risk assessment focus on single pesticides and do not
adequately account  for  cumulative risks arising from complex exposure patterns and human
variability due to age, gender, pre-existing disease, health  and nutritional status, and genetic
predisposition.  Existing tools for controlling  and preventing  exposure  are limited to certain
processes and materials.

       The Food Quality Protection Act (FQPA) identifies clear science needs, including the
evaluation of all potential routes and pathways of exposures to pesticides, and resulting health
effects, particularly for sensitive subpopulations and considering effects from cumulative exposures.

       EPA must develop tools adequate to address the needs imposed by FQPA. In FY 2002,
EPA's research program will continue to focus on developing and validating methods to identify and
characterize, and models to predict, the potential increased susceptibility to human health effects
experienced by infants and children; identifying and understanding major exposure routes, and
pathways and processes, and developing theoretical and experimentally based multipathway
exposure models for pesticides and other toxic substances; and addressing the adequacy of current
risk assessment methods and providing the necessary risk assessment guidance. More specifically,
health effects research will continue to focus on developing new and improved test methods to
evaluate  the effects of environmental exposure to pesticides and other chemicals in  sensitive
subpopulations.
Strategic Objectives and FY2002 Annual Performance Goals

Objective 01: Reduce Risks from Pesticide Residues in Food

•      Decrease adverse risk from agricultural uses from 1995 levels and assure that new pesticides
       that enter the market are safe for humans and the  environment, through ensuring that all
       registration action are timely and comply with standards mandated by law.
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•      Detections of residues of carcinogenic and cholinesterase inhibiting neurotoxic pesticides on
       foods eaten by children will have decreased by 15 percent (cumulative) from their average
       1994 to 1996 levels.

•      At least one percent of acre-treatments will use applications of reduced risk pesticides.

Objective 02: Eliminate Use on Food of Pesticides Not Meeting Standards

       By the end of 2002, EPA will reassess a cumulative 66% of the 9,721 pesticide tolerances
       required to be reassessed over ten years. This includes 70% of the 893 tolerances having the
       greatest potential impact on dietary risks to children.

•      Assure that pesticides active ingredients registered prior to 1984 and the products that
       contain them  are reviewed to assure adequate protection for human health and the
       environment Also consider the unique exposure scenarios such as subsistence lifestyles of
       Native Americans in regulatory decisions.


Highlights

Reduce Public Health Risk from Pesticide Residues

       FFDCA and FIFRA authorize EPA  to set terms and conditions of pesticide registration.,
marketing and use. EPA will use these authorities to reduce residues of pesticides with the highest
potential to cause cancer or neurotoxic effects, including those which pose particular risks to children
and other susceptible populations.  All new pesticides, including food/feed-use pesticides are
registered after 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, new uses, and
handling experimental use permits and emergency exemptions.

       In 2002, the Agency will continue its efforts to decrease the risk the public faces from
agricultural pesticides through the  regulatory review of  new  pesticides, including reduced risk
pesticides and biopesticides.  EPA expedites the registration of reduced risk pesticides, which pose
lower potential dietary risks to consumers, lower risks to agricultural workers, and reduce potential
risk to the earth's ozone layer, groundwater, aquatic organisms or 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.

Reduce Use on Food of Pesticides Not Meeting Current Standards
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       In FY 2002, the Agency will continue toward its ten year statutory deadline of reassessing
all 9,721 tolerances by meeting its second statutory deadline of reassessing a cumulative 66 percent
of these tolerances by August 2002.  The Agency will  also continue to develop tools to screen
pesticides for their potential to disrupt the endocrine system.  In 2002, EPA will work toward
completing 30 Reregistration Eligibility Decisions (REDs) and 750 product reregistrations.

       The tolerance reassessment process addresses the highest-risk pesticides first. Using data
surveys conducted by the USDA, the 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 has begun to track its progress  in determining
appropriate tolerances for these pesticides under the new FQPA standards.  In 2002, EPA will
continue its effort to reduce dietary risks to children, by completing a cumulative 70 percent of these
tolerances of special concern.

       Organophosphates and carbamates are believed to pose higher risks than other groups of
pesticides. These pesticides are widely used and curtailing or restricting the use of these chemicals
will mean changes in current farming practices. The need for broad input and participation lead to
a special stakeholder process to address data, analysis and regulatory requirements, protocol, and
scientific and public review as the Agency moves to reduce the  risks posed by some of these
pesticides. The Agency will continue this important dialogue with stakeholders as we work together
to protect human health and the environment.

         The reregistration maintenance fee, which funds the salaries of the 200 FTE that are
involved in reregistering older pesticides to ensure they meet current health and safety standards,
expires at the end of FY 2001.  The FY 2002 President's Budget reflects the expiration of the
authority to collect  reregistration  maintenance fees. Despite the  expiration of the fee, the
reregistration program will be fully funded in 2002. The 2002 budget request fills the resource gap
with funds previously appropriated for the tolerance reassessment program.

       The Reregistration program was accelerated  by the  1988 amendments  to  FIFRA and
enhanced by FQPA,  which included adding a tolerance reassessment requirement. 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 new standards will be eliminated or
restricted in order to minimize potentially harmful exposure.  The issuance of a Reregistration
Eligibility Decision (RED) for a pesticide under reregistration review summarizes the health and
environmental effects findings of that pesticide.   The findings determine whether the products
registered under this chemical are eligible for reregistration.
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    Cumulative Percentage of Reregistration Eligibility Decision (RED) Cases to be Completed by 2006
                                  (2001 -2006 are estimates)
    « 600
    CD
    CO
    O 550

    | 500

    1 450
    ID
    I 400

    £ 350

    Z 300
              2000
                        2001
2002
2003
                                                      2004
2005
2006
                 This is the Agency's estimated progress toward completing 100% of REDs by 2006,
                            As of 2000, EPA had completed 435 of 612 REDs.
              FQPA  added considerably more complexity into  the  process  of reregistering
pesticides. New statutory requirements have made risk assessment more complex and lengthened
the "front end" of reregistration. These requirements include considering aggregate exposure and
cumulative risk, 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 pest
control tools and practices. Over the longer run, these changes will enhance protection of human
health and the environment.

       Also, by the end of FY 2002, EPA expects to have incorporated public comments into all
science policy papers, finalizing most of them, and will begin implementing these policies in our risk
assessments.  Developing and implementing these science policies - particularly  the policy for
cumulative risk assessment for pesticides with common methods of toxicity - will cause a sharp
increase in the number of tolerances  reassessed in 2002.

       In FY 2000, the  Agency  targeted the organophosphate pesticides (OPs) for tolerance
reassessment.  Because  the OPs share a common mechanism of toxicity, a  cumulative  risk
assessment across all of the OPs is required before the reassessment of their tolerances is completed.
This extra stage of cumulative assessment was not needed for the tolerances reassessed in FY 1999
since pesticides reviewed at that time either were canceled voluntarily or had no common mechanism
of toxicity. The cumulative assessment requires that EPA establish a cumulative risk policy, which
has taken the Agency longer than first anticipated. EPA expects to issue that policy by the end of
FY 2001. Following that, the Agency will be able  to complete the reassessment of all of the OP
tolerances, producing a surge of reassessments completed in FY 2002. We are on  schedule to meet
our statutory deadline of 66% of all tolerances reassessed by August 3,2002.

       As required by FQPA, EPA has developed a tolerance fee rule that recovers  from pesticide
manufacturers the full cost of setting and reevaluating pesticide tolerances on food.  The tolerance
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program will be folly funded through a combination of appropriated funds and fees that begin in FY
2002. In future years, the program will be entirely funded through the new tolerance fee.

       FQPA also  requires that EPA establish a process  for periodic review  of pesticide
registrations. TMs requires the updating of all pesticide registrations using current health standards,
scientific data, risk assessment methodology, program policies and effective risk reduction measures.
In 2002, the Agency will continue developing the framework for the registration review program.

       Research

       In F Y 2002, EPA's research program will continue to develop pesticides exposure and effects
data, risk assessment methods and models for children, and control technologies needed to comply
with the requirements of Food Quality Protection Act (FQPA).  Specifically, health effects research
will continue to focus on developing new and improved test methods to  evaluate the effects of
environmental exposure to pesticides and other chemicals in sensitive subpopulations. The exposure
research program will continue to devote attention to  identifying those pesticides, media, pathways,
and activities that represent the highest potential exposures to children and other susceptible and/or
sensitive subpopulations and determine the factors that influence these exposures. Risk assessment
research will develop methods for combining exposures and assessing exposure-dose-response
relationships for pesticides and other compounds with common modes of action and different
exposure patterns.
External Factors

       The ability of the Agency to achieve its strategic objectives depends on several factors over
which the Agency has only partial control or little influence. EPA relies heavily on partnerships with
states, tribes, local governments and regulated parties to protect the nation's food supply, the
environment, and human health, from pesticides.

       EPA assures the safe use of pesticides in coordination with the USD A and FDA, who have
responsibility to monitor and control residues on food and other environmental exposures. EPA also
works with these agencies to coordinate with other countries and international organizations with
which the United States shares pesticide-related environmental goals. This plan discusses the
mechanisms and programs the Agency employs to assure that our partners will have the capacity to
conduct the activities needed to achieve the objectives. Much of the success of EPA's pesticide
programs also 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.
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       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, the time frame for achieving many of the objectives could be affected
by new technology or unanticipated complexity or magnitude of pesticide-related problems.

       Newly identified environmental problems and priorities could have a similar effect on 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.
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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                       Safe Food


Objective #1: Reduce Risks from Pesticide Residues in Food

       By 2006, reduce public health risk from pesticide residues in food from pre-Food Quality
Protection Act (FQPA)  levels (pre-1996).
                                   Resource Summary
                                  (Dollars in thousands)
                                        FY 1999
                                        Enacted
           FY2000
           Actual
FY2Q01
Enacted
FY 2002
Request
Reduce Risks from Pesticide Residues in        $34,389.8      538,373.3      $44,577.4     $45,199.4
Food

    Environmental Program & Management       $31,494.6      $36,181.9      $42,312.6     $42,926.7
    Science & Technology

       Total Workyears
$2,895.2       $2,191.4      $2,264.8      $2,272.7

  296.0          322.5         330.0        335.0
                                     Key Programs
                                  (Dollars in thousands)

Pesticide Registration
Pesticide Reregistration
Endocrine Disruptor Screening Program
Pesticide Residue Tolerance Reassessments
Rent, Utilities and Security
FY 1999
Enacted
$25,031J
$4,724.0
$1,237.3
$1,040.8
$0.0
FY 2000
Enacted
$24,964.3
$4,730.3
$1,695.5
$1,262.3
$3,660.3 ,
FY 2001
Enacted
$29,229.2
$5,381.1
$2,264.0
$1,234.5
$4,250.0
FY 2002
Request
$29,669.3
$6,632.6
$1,975.4
$649.9
$4,923.8
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                                           FY1999     FY2000     FY2001      FY2002
                                           Enacted     Enacted     Enacted      Request
Administrative Services                               $0.0       $424.7       $669.9      $456.3
FY 2002 Request

       This request is targeted toward improving the safety of the food produced and consumed by
the American public, and continuing the commitment to implement the high standards of FQPA,
especially in the protection of infants and children. The Agency will expand partnerships with the
United States Department of Agriculture (USD A), Food and Drug Administration (FDA) and other
components of the Department of Health and Human Services (HHS), Organization for Economic
and Cooperation Development (OECD) and various others to engage and share information with
stakeholders,  to  develop  strategies for  a smooth transition  to FQPA standards,  for the public,
industry and agriculture. EPA will continue to ensure that the  best available science is incorporated
into the implementation of the statute.

       Many pesticides currently on the market with approved food uses are suspected to be
potential human carcinogens, neurotoxins or endocrine disrupters.  They may also  pose other
significant  health concerns, especially  to children.  The  Food Quality Protection Act (FQPA)
provides unprecedented opportunities to protect the health of the U.S. public, and to positively
impact agricultural production techniques, lessening the overall risk of pesticide use.  Further, it
mandates that the Agency continue to review pesticides on  a periodic basis to ensure that those
registered for use meet the most current health standards, thus  ensuring that when properly used, we
maintain a reasonable certainty of no harm to human health or the environment. To address these
concerns, EPA  will continue the Registration and  Reregistration/Special Review regulatory
programs.  Combined with the review of existing pesticides  through reregistration and tolerance
reassessment, the availability of safer pesticides has improved the risk picture for agriculture.

Registration Activities

       Under the Registration program, EPA registers new pesticides after extensive review and
evaluation of human health and ecological effects studies and data. As part of the process, the
Agency analyzes data and sets a tolerance level for each crop (use) the registrant requests for the
specific pesticide. The Registration program gives priority to accelerated processing of reduced risk
substitutes for products already on the market, thus giving farmers and other users new tools which
are better for health and the environment.

       There are many types of registration actions in response to industry's need.  Registration's
include new active ingredients, new pesticides which may simply be new formulations of ingredients
already registered (me-toos), new uses which add a crop type  to the approved uses of the registered
pesticide and minor uses for low volume crops.

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       FQPA has added requirements for reviewing the ingredients added to pesticide products
called inert ingredients.  Though called "inert" because they have no pesticidal properties, those
agents are often chemically active and must be reviewed for unintended effects on humans and the
environment. In addition, increased public education and full ingredient disclosure (including inerts)
on pesticide product labels must be balanced against industry interests in protecting confidential
business information (CBI).

       In March 2000, the Agency established a diverse workgroup with members from public
health, environmental, industry, academic,  and state government organizations. EPA's charge to
the workgroup is to consider potential measures to increase the availability of information about
inerts to the public. EPA will continue to work on this issue in FY 2002.
       The Agency has engaged the public
and the scientific community  in developing
and reviewing nine science policies that shape
EPA's  approach to  screening  pesticides.
While all of the  policies are significant, the
requirements  to  consider  cumulative  and
aggregate risk and the ten-fold safety factor
for   children's   health  have  important
ramifications for chemical risk assessments of
many chemicals.  Cumulative risk  requires
that EPA consider the combined effects of
exposures  to multiple chemicals sharing  a
common mechanism of toxicity.  Pesticides
that are widely  used and  have a common
mechanism of toxicity are  often riskier.  In
2002, the Agency will have finished its policy
for assessing cumulative risk for these groups
of chemicals and begin to apply it to pesticide
registration  and  reregistration  decisions.
Aggregate   exposure   brings  issues   of
residential  exposures  and  drinking water
residues into the equation. The extra ten-fold
safety factor for children's health has an
impact on data collection. A lower factor can
be used, FQPA states, "...only if, on the basis
of reliable data, such margin will be safe for
infants and children,"  These new science
policies  will  likely result in a safer food
supply for the American public.
          FQPA Science Policies

EPA worked with the Tolerance Reassessment
Advisory Committee (TRAC) to identify nine science
policy issues that are key to the implementation of the
Food Quality Protection Act (FQPA) and tolerance
reassessment.  Papers on all of these polices have
been made publicly available for comment. By the
end of FY 2002, EPA will have revised all papers.
Several of these papers to be revised in FY2002
involve particularly complex policy issues, including
under what circumstances to apply the 10-fold safety
factor for vulnerable populations in registration
decisions; how to properly  account for cumulative risk
in the risk assessment process, and how to characterize
residential exposure.

The following are all nine science policies:

1. Applying the FQPA 10-fold safety
   factor
2. Dietary exposure assessment methods
3. Exposure assessment
4. Dietary exposure estimates
5. Drinking water exposures
6. Assessing residential exposure
7. Aggregating exposures from non-
   occupational sources
8. Cumulative risk assessment for
   pesticides with common methods of toxicity
9. Selection of appropriate toxicity endpoints
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       EPA will continue to actively encourage and engage the pesticide industry, farmers and the
public to participate in the implementation of FQPA.  EPA uses common-sense strategies for
reducing risk to acceptable levels while retaining those pesticides of the greatest public value,
including those employed in minor uses and integrated pest management needs. In FY2002, EPA
will continue to work with the pesticide industry and farmers to explore new pest management
approaches and to provide reasonable phase out periods for canceled pesticides. EPA will also
continue its stakeholder consultation process through regular meetings with Committee to Advise
on Reassessment and Transition (CARAT), an advisory body composed of environmental/public
interest groups; pesticide industry and trade associations; pesticide user, grower, processor and
commodity organizations; public health organizations, including children's health representatives;
Federal agencies; State, local and tribal governments; academia; consumers and the public.

       The Agency allows for the unpredictability of agricultural conditions and pest outbreaks and
takes action to meet emerging needs. States and industry submit registration actions to meet rapidly
changing needs, including petitions for temporary uses of pesticides to meet emergency conditions,
and for research purposes.  These actions include issuance of emergency exemptions under FIFRA
sec. 1.8, which  allows the use, for a limited time, of a pesticide not registered for that specific
purpose. Emergency conditions could include controlling a new pest or the spread of a pest to new
areas, or controlling an outbreak of a pest that poses a public health risk, such as the West Nile virus
spread by migration. FIFRA addresses other special needs, including provisions to register products
by states for specific local uses not Federally registered; and provisions for experimental use permits
(under FIFRA sec.5) allowing pesticide producers to test new pesticide uses outside the laboratory
to generate information to apply for amendments to previously approved pesticides (e.g., to reflect
label revisions or changed  formulations for products already registered).

       The Agency and USDA work collaboratively to ensure minor use registrations receive
appropriate support.  Minor use pesticides are those that produce relatively little revenue for their
manufacturers, considering the cost of maintaining these registrations. EPA policy has defined minor
uses as being used on crops grown on less than 300,000 acres. Minor use pesticides are of major
significance in agricultural production and in public health protection, to growers and consumers.
Without these small-scale but vital pesticide uses, many of the fruits, vegetables, and ornamentals
grown in the U.S., worth billions of dollars, could not be produced successfully. In FY 2002, EPA
and USDA will continue  to work closely to  meet the need for newer, reduced risk  pesticides
registered for minor uses.  As needed, the Agency uses the data collected under USDA's IR-4
program to establish tolerances for minor uses and provides priority status for registrations for
vulnerable crops and minor agricultural uses.

       Bioengineered crops are playing an ever increasing role in the agricultural marketplace and
each bioengineered  product must be reviewed to  ensure adequate safety to the public and
environment alike. As with any new technology, there is lively public and scientific debate of the
best ways to incorporate the products into the market and the possible long-term implications for
agriculture. EPA must keep abreast of new science and perform its traditional role of evaluating the
types of organisms being used for the genetic modification, the stability of the genetic insert in the

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environment, and the potential exposures of workers and consumers to the biotechnology product.
Other areas of concern include potential impacts on non-target organisms and the potential for pests
to become resistant to the bioengineered product. The Agency will continue to work with industry
and USDA on issues that arise from this major change in the agricultural industry.

Reduced Risk Chemicals and Biopesticides

       In F Y 2002, EPA will continue to provide incentives to the pesticide industry to decrease risk
levels from agricultural pesticides through the expedited regulatory review of reduced risk pesticides,
including biopesticides. Reduced risk criteria include pesticides with reduced toxicity, potential to
displace other chemicals posing potential human health concerns, reduced exposure to workers, low
toxicity to non-target organisms, low potential for groundwater contamination, lower use rates than
alternatives, low pest resistance potential, or high compatibility with integrated pest management
and efficacy.  The Agency is committed to  expediting the registration of additional alternative
products and in 2002, expects to register 15 new reduced risk pesticides.

Reduce Agricultural Use of Potential Carcinogenic or Neurotoxic Pesticides

       EPA is moving deliberately to minimize exposure from pesticides, currently on the market,
with the highest potential to cause cancer or neurotoxic effects. In 2002, EPA must address these
chemicals and make decisions on how to minimize potential risk resulting from their use. In order
to accomplish this, the Agency must complete                                     :
its  cumulative risk policy  and expand or
refine its usage data.  The development and
registration of appropriate  alternatives to
these risky chemicals is also  a priority.  The
Agency is  especially  conscious  of the
potential impacts on minor crop growers and
integrated pest management programs and
will continue to  work  with growers  and
registrants  to focus  attention  on those
situations  where  limited crop  protection
alternatives exist.
         Foods that Children Eat

The following 19 foods that children commonly eat
were surveyed for organophosphorus and carbamate
pesticides during 1994 through 1996: apples, apple
juice, bananas, broccoli, carrots, celery, grapes, green
beans (fresh, canned and frozen), lettuce, milk,
oranges, peaches, potatoes, spinach, sweet corn
(canned and frozen), sweet peas (canned and frozen),
sweet potatoes, tomatoes, and wheat By the end of
2002, regulatory actions by EPA should result in a
15% reduction of detection of residues from
carcinogenic and neurotoxic pesticides on these foods.
       FQP A emphasizes the need to protect
children from adverse effects of pesticide
exposure.  EPA is targeting pesticides used on the foods children commonly eat.  Through its
regulatory efforts, detections of residues will significantly decrease from pre-FQPA levels (see box).
FY 2002 Change from FY 2001 Enacted

EPM
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       (-$291,600) Base endocrine disrupter activities  were reduced to help meet increased
       workforce costs. Alternative contract structure will allow the program to conduct priority
       research with no significant delays due to this change.

       (-$5 07,600) Tolerance reassessment and tolerance petition programs will be partially funded
       through the new tolerance fee. Resources were shifted to fund the reregistration program.
       There will be no impact to the program from changing the source of funds.

       (+$1,385,460)  This increase reflects an increase in workforce costs.

       (+$584,230, 6.2 FTE) Staff previously funded under the  expired maintenance fee will be
       funded from the appropriated budget in EPM. There will be no impact to the program from
       changing the source of funds.

       (-$858,300) This reduction in contract dollars for tolerance petitions and antimicrobial
       registration actions will provide funds for the salary for the reregistration FTE formerly
       funded through the maintenance fee which expires in 2001. The new tolerance fee will fund
       one half of tolerance reassessment and tolerance petition programs hi 2002. Registration
       actions for antimicrobials will be slowed or handled directly by staff.

       (-$240,000) This is a reduction in working capital fund and other base programs to fund
       payroll and continuing emphasis on scientific peer review. Cost streamlining is expected to
       reduce impact to decreased areas.
Annual Performance Goals and Performance Measures

Decrease Risk from Agricultural Pesticides

In 2002     Provide timely decisions to the pesticide industry on the registration of active ingredients for
           conventional pesticides.

In 2002     Decrease adverse risk from agricultural uses from 1995 levels and assure that new pesticides
           that enter the market are safe for humans and the environment, through ensuring that all
           registration actionare timely and comply with standards mandated by law.

In 2001     Provide timely decisions to the pesticide industry on the registration of active ingredients for
           conventional pesticides  including  tolerance setting,  product  registrations and inert
           ingredients.

In 2001     Decrease adverse risk from agricultural uses from 1995 levels and assure that new pesticides
           that enter the market are safe for humans and the environment.

In 2000     The Registration Program completed registrations for 9 new chemicals, 3069 amendments,
           1106 me-toos, 427 new uses, 95 inerts, 458 special registrations, 452 tolerances, and 13
           reduced risk chemicals/biopesticides.
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FY 1999
Actuals
19
7
681
FY 2000
Actuals
13
9
427
FY2001
Estimate
96
51
1979
FY2002
Request
109
58
2329

Regist. (Cum)
Regist. (Cum)
Actions (Cum)
In 1999     In F Y1999, EPA registered 19 additional reduced risk pesticides, including 13 biopestjcides.
            EPA established 351 new pesticide food tolerances and acted on 681 proposed new pesticide
            uses, ensuring that all meet the new health safety standard of "reasonable certainty of no
            harm."

Performance Measures:
Register safer chemicals and biopesticides

New Chemicals

New Uses

Baseline:    The baseline year is 1996, the year FQPA was enacted. Cumulative totals for safer chemicals,
            biopesticides, new chemicals, and new uses are displayed because this more clearly shows
            progress made in implementing FQPA since 1996 than would a display of single-year results
            shown in earlier years.

Reduced Risk Pesticides

In 2002     At least one percent of acre-treatments will use applications of reduced risk pesticides*

Performance Measures:                       FY 1999     FY2000    FY2001    FY2002
                                            Actuals      Actuals     Estimate    Request

Percentage of acre treatments with
reduced risk pesticides                                                             1%         acre treatments

Baseline:    Each year's total acre-treatments with pesticides, as reported by USDA's National Agricultural
            Statistical Survey serve as the baseline  for computing the  percentage using reduced risk
            pesticides.

Reduce use of highly toxic pesticides

In 2002     Detections of residues of carcinogenic and cholinesterase inhibiting neurotoxic pesticides on
            foods eaten by children will have decreased by 15 percent (cumulative) from their average 1994
            to 1996 levels.

In 2001     Use of pesticides classified as having the highest potential to cause cancer or neurotoxic effects
            will be reduced.

In 2000     Due to regulatory actions and trends in usage, we are seeing a larger decrease (15%) in the use
            of carcinogenic or neurotoxic pesticides than expected.  We anticipate that this trend will
            continue.

Performance Measures:                       FY 1999     FY2000    FY2001    FY2002
                                            Actuals      Actuals     Estimate    Request

Reduction of detections on a core set
of 19 foods eaten by children relative
to detection levels for those foods
                                                  III-17

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reported in 1994-1996.                              15%       20%       15%       Reduced Detect.

Baseline:   Average detection frequencies for these foods in the 1994-1996 PDF data are 25% for
          carcinogenic pesticides and 33.5% for cholinesterase-inhibiting neurotoxic pesticides.
Verification and Validation of Performance Measures

Performance Measure:     Number of registrations of reduced risk pesticides.
                           Number of registration actions for new chemicals.

Performance Database: Pesticide Regulatory Action Tracking System (PRATS).  PRATS is
maintained by the Office of Prevention, Pesticides and Toxic Substances (OPPTS) and is designed to
track regulatory data submissions and studies, organized by scientific discipline, which are submitted
by the registrant in support of a pesticide's registration.

Data Source: OPP Staff (reviewers)

QA/QC Procedures: Program output. In order to meet the criteria of a reduced risk pesticide, the
pesticide must meet the criteria set forth in PR Notice 97-3, September 4,1997. Pesticides include
those which reduce the risks to human health; reduce the risks to nontarget organisms; reduce the
potential for contamination of groundwater, surface water or other valued environmental resources;
and/or broaden the adoption of integrated pest management strategies, or make such strategies more
available or more effective. In addition, biopesticides are generally considered safer (and thus reduced
risk).

Data Quality Review: Management reviews the program output counts.

Data Limitations: None

New / Improved Data or Systems: Database (Office of Pesticide Programs Information Network)
consolidates various OPP program databases.
Coordination with Other Agencies

       EPA coordinates with and uses information from a variety of federal, state and international
organizations and agencies in our efforts to protect the safety of America's food supply from hazardous
or higher risk pesticides.

       In May 1991, the U.S. Department of Agriculture (USDA) implemented the Pesticide Data
Program (PDP)  to collect objective and statistically reliable data on pesticide residues on food
commodities. This action was in response to public concern about the effects of pesticides on human
                                          111-18

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health and environmental quality. EPA uses PDF data to improve dietary risk assessment to support
the registration of pesticides for minor crop uses.

       PDF is critical to implementing the Food Quality Protection  Act. The system provides
improved data collection of pesticide residues, standardized analytical and reporting methods, and
increased sampling of foods most likely consumed by infants and children.  PDF sampling, residue,
testing and data reporting are coordinated by the Agricultural Marketing Service using cooperative
agreements with ten participating states representing all regions of the country.  PDF  serves as a
showcase for Federal-State cooperation on pesticide and food safety issues.

       EPA is continuing the development of the National Pesticide Residue Database (NPRD), in
coordination with chemists and information management specialists from FDA, USD A, California and
Florida. This database will include automated data validation. The system and will be integrated with
the other EPA databases.

       FQPA requires EPA to consult with other government agencies on major decisions. Further,
EPA, USD A and FDA work closely together using both a memorandum of understanding and working
committees to deal with a variety of issues that affect the involved agencies' missions. For example,
these agencies work together on residue testing programs and on enforcement actions that involve
pesticide residues on food, and we coordinate our review of antimicrobial pesticides.

       While EPA is responsible for making registration and tolerance decisions, the Agency relies
on others to carry out some of the enforcement activities.  Registration-related requirements under
FIFRA are enforced by the states. Tolerances are enforced by the Department of Health and Human
Services/Food  and Drug  Administration for most foods, and by  the U.S.  Department of
Agriculture/Food Safety and Inspection Service for meat, poultry and some egg products.

       Internationally, the Agency collaborates with the Intergovernmental Forum on Chemical Safety
(IFCS), the CODEX Alimentarius Commission, the North American Commission on Environmental
Cooperation (NACEC), the Organization for Economic Cooperation and Development (OECD) and
the North American Free Trade Agreement (NAFTA) commission to coordinate policies, harmonize
guidelines, share information, correct deficiencies, build other nations' capacity to reduce risk, develop
strategies to deal with potentially harmful pesticides and develop greater confidence in the safety of
the food supply.

       One of the  Agency's most valuable partners on pesticide issues is the Pesticide Program
Dialogue Committee (PPDC), which brings  together  a  broad cross-section of knowledgeable
individuals from organizations representing divergent views to discuss pesticide regulatory, policy and
implementation issues.  The PPDC consists of  members from industry/trade associations, pesticide
user and  commodity groups, consumer and environmental/public interest groups and others.

       The PPDC  provides a structured environment for meaningful information exchanges and
consensus building discussions, keeping the public involved in decisions that affect them. Dialogue
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with outside groups is essential if the Agency is to remain responsive to the needs of the affected
public, growers and industry organizations.

       EPA relies on data from HHS to help assess the risk of pesticides posed to children.  Other
collaborative efforts that go beyond our reliance on the data they collect  include developing and
validating methods to analyze domestic and imported food samples for organophosphates, carcinogens,
neurotoxins and other chemicals of concern. These joint efforts protect Americans from unhealthful
pesticide residue levels.
Statutory Authorities

Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)

Federal-Food, Drag and Cosmetic Act (FFDCA)

Food Quality Protection Act (FQPA) of 1996
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                             Environmental Protection Agency

             FY 2002 Annual Performance Plan and Congressional Justification

                                         Safe Food


Objective #2: Eliminate Use on Food of Pesticides Not Meeting Standards

       By 2008, use on food of current pesticides that do not meet the new statutory standard of
"reasonable certainty of no harm" will be eliminated.
                                     Resource Summary
                                    (Dollars in thousands)

Eliminate Use on Food of Pesticides Not
Meeting Standards
Environmental Program & Management
Science & Technology
Total Workyears
FY 1999
Enacted
$43,173.0
$35,396.3
$7,776.7
415.3
FY2000
Actual
$44,886.4
$35,179,6
$9,706.8
456.2
FY 2001
Enacted
$64,726.5
$52,680.6
$12,045.9
466.9
FY 2002
Request
$63,045.6
$50,796.7
$12,248.9
435.9
                                       Key Programs
                                    (Dollars in thousands)
                                             FY1999     FY2000     FY 2001      FY2002
                                             Enacted     Enacted     Enacted      Request
Pesticide Reregistration

Endocrine Disrupter Screening Program

Pesticide Residue Tolerance Reassessments

Rent, Utilities and Security

Administrative Services
$27,851.0    $24,424.2     $28,088.1     $36,699.3

 $1,435.5     $4,869.8      $3,457.0      $3,314.8

 $9,057,3    $10,335.5     $13,567.1      $5,196.1


     $0.0       $458.0      $6,354.9      $5,514.0

     $0.0       $552.4  -    $1,139.5        $861.2
                                            111-21

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FY 2002 Request

       EPA is reviewing risk assessments for data and studies - pesticides that are used on foods to
ensure that pesticides residues (tolerances) meet stricter FQPA safety standards. Risk assessments are
the basis for the Agency's decisions on  tolerance setting. They involve a series of  sophisticated
analyses of the potential health and environmental  effects resulting from exposure to a chemical
through various means.  Draft risk assessments go through both scientific peer review and a public
review process. Pesticide companies must submit a wide variety of scientific studies for review before
EPA will set a tolerance.  The data are designed to identify possible harmful effects the chemical could
have on humans (its toxicity), the amount of the chemicals (or breakdown products) likely to remain
on or in food, and other possible sources of exposure (e.g., through use in homes or other places).  In
reassessing tolerances, EPA reviews  data currently available and may  request additional data if
requirements (data call-in) have changed or there appear to be data gaps or risk questions that are not
answered adequately.

       FQPA sets in place a new program, called Registration Review, which will periodically update
the pesticide registrations, including tolerances every 15  years, avoiding the need for "catch-up"
programs in the future.

Complete Active Ingredient and Product Reregistration

       Through the Reregistration program, EPA will continue to review pesticides currently on the
market to ensure that these also meet the FQPA health standard.  Those pesticides found not in
compliance will be eliminated or otherwise restricted to minimize harmful exposure.  The issuance
of a Reregistration Eligibility Decision (RED) summarizes the health and environmental effects
findings during the reregistration review of the chemical. This finding determines whether the products
registered under this chemical are eligible for reregistration.  In 2002, the Agency will complete 30
REDs. EPA plans to complete reregistration for active ingredients by 2006 and inert ingredients by
2008.

       As pesticides go through reregistration, they may meet certain criteria that will trigger a process
called a special review.  These criteria include findings of (a) acute toxicity to humans or domestic
animals, (b) potentially chronic or delayed toxic effects in humans or hazards to non-target organisms,
(c) risk to threatened or endangered species, (d) risk to critical habitats of threatened or endangered
species, and (e) any other unreasonable adverse effects to humans or the environment. The special
review subjects the pesticide to a more in-depth analysis to determine with reasonable certainty that
no harm will occur when used.

       EPA's authority to collect Reregistration Maintenance Fees expires in September 2001. The
President's budget substitutes appropriated funds  for fees to fund the reregistration program.  The
appropriated dollars for this were reprogrammed from the tolerance assessment program which will
be fully funded by fee revenue beginning March 2002.
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Registration Review

       FQPA requires that EPA establish a process for periodic review of pesticide registrations with
a goal of completing this process every 15 years.  The  registrations  of all pesticides will be
continuously updated with respect to current scientific data, risk assessment methodologies, program
policies, and effective risk reduction measures, ensuring that they meet the most current health
standards. In 2002, EPA will finish the regulation, setting up the new program. The regulation will
define and outline the program.  As the reregistration program draws to a close, the new registration
review program will continue to protect human health and the environment, using the most current
scientific standards.

Reassessment of Existing Pesticide Residue Tolerances on Food

       A tolerance is the maximum legal amount of a pesticide residue permissible on food.  FQPA
requires that EPA reassess within ten years the more than 9,721 pesticide tolerances existing in 1996.
The first statutory deadline was to complete reassessment of 33 percent of the existing tolerances by
August 1999. EPA surpassed this goal, reassessing approximately 39 percent of the tolerances, most
of them among the highest priority group.   The Agency will continue its reassessment of these
tolerances and expects to meet its next statutory deadline of reassessing a cumulative 66 per cent of
the tolerances requiring reassessment by August 2002.

    i   FQPA standards are having a great impact on the way pesticides are reviewed and the Agency
continues to ensure the most recent, sound science  is applied consistently as part of a broad process
including all stakeholders as well as the scientific community. The Agency  has worked extensively
with stakeholders through the Pesticide Program Dialogue Committee and the Tolerance Reassessment
Advisory Committee to ensure transparency in decision making and a fuller understanding of the
implications for growers, producers  and  the public. EPA  will continue to emphasize a smooth
transition to safer pesticides, and the Agency continues to coordinate closely with USDA as well as
industry and commodity groups in finding alternatives and sharing information. Organophosphates,
a higher risk set of pesticides, are also widely used and changes in availability will  impact farmers.
To address the issues around OP replacement, the Agency and USDA have developed a pilot review
process that expands public participation.

       The risk assessment includes consideration  of the amounts and types of food people eat and
how widely the pesticide is used (that is, how much of the crop is actually treated with the pesticide),
as well as chemistry, toxicity and exposure information.  EPA obtains data from a wide variety of
sources including USDA surveys on what foods people eat and the quantity they eat, FDA residue
monitoring, and U.S. Geological  Survey  information on pesticide  levels in ground,  surface and
drinking water.  The risk assessment and adjunct analyses determine the outcomes for the tolerances
on food.
                                          HI-23

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     CO
     ~o
     as
     CO
     o
     -C
6

5

4

3

2

1

0
               Status of Tolerance Reassessment
                              by Priority Group
                                   (as of 3/13/01)
                   Group 1            Group 2            Group 3

                           H Remaining  •  Completed
      Options for risk reduction range from revocation of the tolerance to modifications in use and
label changes to reflect changes in re-entry intervals or application rates. For example, the pesticide
could be applied in lower quantities, or less frequently, or at a greater distance from water bodies.

      Protecting children's health is of central concern under FQPA, which requires that EPA give
priority to the review tolerances or exemptions that appear to pose the greatest risk to public health.
As a result, EPA divided all pesticide chemicals into three priority groups, published in the federal
register in the first year of the FQPA provisions. There are 9,721 tolerances that must be reassessed.
Tolerances for the highest risk pesticides are in Priority Group 1, which includes organophosphates,
carbamates, and probable carcinogens, among other high risk chemicals, and totals 5,546 tolerances.
Group 2 includes some carcinogens as well as pesticides in the reregistration process that have not had
a decision, for a total of 1,928 tolerances and Group 3 includes the remaining pre-FQPA and post-1984
pesticides. EPA expects to complete almost all Group 1 tolerance reassessments by the end of 2002.
Some tolerances in all groups have been reassessed as part of the work already underway in the
reregistration program.

      EPA has developed a statutorily required tolerance fee rule that lays out and justifies a fee
schedule for industry. This budget assumes that there will be no impediment to implementing the rule
effective March 2002. The tolerance program is funded by appropriated dollars for part of the year.
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Endocrine Disrupters

       FQPA and the Safe Drinking Water Act Amendments of 1996 require the Agency to screen
new chemicals and test those currently in use for their potential to disrupt the endocrine systems of
humans and wildlife. The human endocrine system helps guide development, growth, reproduction
and behavior. This is a critical issue, especially for children, since exposure to endocrine disrupters
during the gestation period or infancy can pose serious and permanent developmental problems.

       EPA is currently focusing on two activities: 1) development of a priority setting system to
choose the first chemicals for screening, and 2) the development and validation of the screens to be
used in the screening program.   The program will first validate relatively simple, less expensive
screens (Tier 1) to look for evidence of the potential to interact with the endocrine system. Two out
of eight Tier 1 screens will be validated by the end of 2001. EPA is projecting that all Tier 1 screens
will be validated by the end of 2003, Testing of chemicals that are found to have the potential to
interact with the endocrine system through Tier 1 screens will begin at that time. Pesticide registrants
and manufacturers of commercial chemicals will be required to test the chemicals EPA designates.
 More complex, expensive and accurate Tier 2 screens will be validated and implemented by the end
of2005.

       Work on pesticide and chemical endocrine disrupters crosses two EPA goals, relating to both
pesticides and all other toxic chemicals (Goals 3 & 4). However, the measures for both chemicals and
pesticides endocrine disrupter work are displayed under Objective 4.3.

       Research

       The Food Quality Protection Act (FQPA) of 1996 identifies clear science needs consistent with
the evaluation of the effects from all potential routes and pathways of exposures to pesticides,
particularly for children and other susceptible and/or sensitive subpopulations as well as consideration
of effects from cumulative exposures. This research program is designed to provide to the Agency
information on human health effects of aggregate exposure, information on cumulative risk, and the
information needed to assess the risks to children and other susceptible and/or sensitive subpopulations
exposed to pesticides.

       Maj or uncertainties in the area of sensitive subpopulations relate to the degree to which current
risk assessment practices provide adequate protection. These uncertainties elicit questions about the
health endpoints of greatest concern in children and whether current risk assessments adequately
protect children and other sensitive subpopulations from unreasonable risk. Similarly, questions about
exposures experienced by children and other susceptible and/or sensitive subpopulations and whether
they produce qualitatively different effects from those experienced by adults are raised.

       Uncertainties associated with cumulative risk relate to our ability to assess risk from aggregate
or cumulative exposure to single chemicals or to mixtures of chemicals. These uncertainties are
explored through addressing questions about the level of cumulative exposures and effects resulting

                                          111-25

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from multiple, short-term exposures from various sources and the characteristics of toxic chemical
mixtures in the environment that are important for assessing risks to humans .

       To address these uncertainties and other issues related to implementing FQPA, research in FY
2002 will continue to: 1) develop new/revised human health effects test methods to improve EPA's
understanding of the key factors influencing exposures and the resulting health effects of pesticides
on infants and children and high-exposure groups; and 2) develop new methods, measures, and
models, to characterize real world exposures to pesticides in order to evaluate the health effects of
cumulative exposures, including multiple acute exposures, and mixtures of chemicals with similar
modes of action from the same source, mixtures of chemicals with similar modes of action from
different sources, and to pesticides and other toxic substances.

       More specifically, health effects research will continue to focus on developing new and
improved test methods to evaluate the effects of environmental exposure to pesticides and other
chemicals in sensitive subpopulations. A specific element of this work will be directed  at the
continued development of methods to evaluate the effects to developing organisms as a result of pre-
and perinatal exposures. These include in utero (i.e., transplacental) and lactational exposure studies.

       Health effects research will also continue to focus on: 1) developing methods to evaluate the
effects of cumulative exposures to pesticides and toxic chemicals, including both long-term exposures
and multiple acute exposures; and 2) developing or improving models to extrapolate findings and
predict health effects, including physiologically-based pharmacokinetic (PBPK) models to improve
dose estimation across exposure scenarios, biologically-based dose-response (BBDR) models to reduce
uncertainty in extrapolations (e.g., from high doses in animals to environmental exposures in humans),
and structure-activity relationship (SAR) models to improve hazard characterization.

       In FY 2002, the exposure research program will continue to devote attention to identifying
those pesticides, media, pathways, and activities that represent the highest potential exposures to
children and other susceptible and/or sensitive subpopulations and determine the factors that influence
these  exposures. The research will be used to develop methods, data, and models for evaluating
aggregate and cumulative exposures to pesticides and toxic chemicals. This research will target high
level, short-term exposure resulting from recent pesticide applications.

       Exposure studies will be supported in five areas: microenvironments/rnacroactivity patterns
for children;  pesticide  use patterns; distribution  of pesticide residues  in nonoecupational
microenvironments; exposure assessments  using the microactivity approach;  and   exposure
assessments using the macroactivity approach.  The outputs from these studies will provide critical
data needed to improve the approach for exposure assessments, and inputs for models of children's
exposure.

       Risk assessment research will develop methods for combining exposures  and assessing
exposure-dose-response relationships for pesticides and other compounds with common modes of
                                          111-26

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action and different exposure patterns. Case studies using data from all available sources will be
developed focusing on aggregating exposure and risk to multiple chemicals from multiple pathways.

      Additionally, in FY 2002, the Agency will continue its efforts to address uncertainties in the
areas of cumulative risk and intermittent exposure. The Agency will address uncertainties related to
intermittent exposure by developing data, methods, and models for characterizing and combining
exposures and assessing exposure-dose-response relationships for pesticides with different exposure
patterns (inclusive of temporal, spatial, and multipathway  considerations), with an emphasis on
developing a foundation for a cumulative risk assessment methodology.

      To address some of the complex uncertainties in the area of cumulative risk, the Agency will
continue efforts to develop a systematic approach for determining the cumulative risk for a given set
of exposure conditions. This approach, starting with less complex paradigms (e.g., risk from aggregate
exposure to a single chemical, or class with a postulated common mode of action, which is present in
multiple pathways), will build towards the more complex including consideration of different temporal
dimensions of exposure.  In each case, work will employ an  integrated  model for estimating
cumulative risk by identifying and defining the relationship  between the determinants of source(s)-
pathway(s)-exposure-dose-cumulativerisk.

      Understanding these relationships would also better focus and guide risk management decisions
and allow for more accurate prediction if determinants change (e.g., addition or reduction in a source
in a given setting). This approach will provide the opportunity to assess the validity of current risk
assessment methods and models to account for multiple sources/exposures, stressors  and toxicities.

      The FQPA research program provides direct support to EPA's Office of Prevention, Pesticides,
and Toxic Substances (OPPTS) through the development of specific test methods that will be used to
develop new or revised test guidelines under the Toxics Substances Control Act (TSCA) and the
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) as amended by the FQPA of 1996.
These test guidelines provide direction to the manufacturers of pesticides and industrial chemicals in
collecting the data required for registering pesticides and gaining approval to manufacture chemicals.
FY 2002 Change from FY 2001 Enacted

EPM

•      (+$6,355,430,  +76.3  FTE)  Reregistration  staff previously funded  under the expired
       maintenance fee will be funded under the appropriated budget.  There will be no program
       impact from changing the source of funds.

*      (-$7,656,438) Tolerance reassessment and tolerance petition programs will be partially funded
       through fees. Resources are shifted to fund the reregistration program staff which will now be
       funded under the appropriated budget.
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*      (-$298,462,-3.0 FTE)  Tolerance reassessment and tolerance petition programs reduced by
       three FTE to meet new Agency workforce levels. Start-up of review of certain second- tier.
       tolerances will be delayed and certain outreach activities will be reduced in scope.

•      (+$981,900) This increase reflects an increase in workforce costs.

»      (-$ 143,600) The base endocrine disrupter program was reduced to meet increased workforce
       costs. Alternative contract structure will allow the program to conduct priority research with
       no significant delays due to this change.

       Research

       S&T

•      There is no significant change.



Performance Goals and Performance Measures

Reassess Pesticide Tolerances

In 2002     By the end of 2002 EPA will reassess a cumulative 66% of the 9,721 pesticide tolerances
           required to be reassessed over ten years. This includes 70% of the 893 tolerances having the
           greatest potential impact on dietary risks to children.

In 2002     Assure that pesticides active ingredients registered prior to 1984 and the products that contain
           them are reviewed to assure adequate protection forhuman health and the environmentAlso
           consider the unique exposure scenarios such as subsistence lifestyles of Native Americans in
           regulatory decisions.

In 2001     By the end of 2001 EPA will reassess a cumulative 40% of the 972 \ tolerances required to be
           reassessed Over ten-years and complete reassessment of a cumulative 46% (or 411) of the 893
           tolerances of special concern in protecting the health of children.

In 2001     Assure that older pesticides active ingredients and the products that contain them are regularly
           reviewed to assure adequate protection for human health and the environment. Also, consider
           the unique exposure scenarios such as subsistence lifestyles of Native Americans in our
           regulatory decisions.

In 2000     We did not achieve our FY2000 target for tolerance reassessments due to the ongoing work to
           establish a science policy on cumulative risk. Although we missed our annual target, we are
           still on track to meet our statutory deadlines to reassess all tolerances.

In 1999     Tolerances reassessed  by EPA through Sept. 30, 1999 totaled 35%, exceeding both our
           cumulative target and the statutory deadline of reassessing 33% of the existing tolerances by
           August 1999.
                                               111-28

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Performance Measures:


Tolerance Reassessment

REDs

Product Reregistration

Tolerance reassessments
for top 20 foods eaten by children
FY 1999
Actuals
1445
14
746

FY 2000
Actuals
121
6
552

FY2001
Estimate
40%
72.4%
750
46%
FY 2002
Request
66%
77,3%
750
70%

tolerances(Cum)
decisions(Cum)
actions
tolerances(Cum)
Baseline:    The baseline value for: tolerance reassessments is 9,721 tolerances that must be reassessed using
            FQPA health and safety standards;  REDs is 612 REDs that must be completed;  product
            reregistration is under development; and tolerances reassessed for the top 20  foods eaten by
            children is 893. Cumulative totals for tolerances reassessed and REDs are displayed because this
            more clearly shows progress in implementing FQPA than would a display of single-year results
            shown in earlier years.

Registration Review

In 2002     Issuance of final rule for registration review

In 2001     Issuance of proposed rule for registration review

In 2000     The Advance Notice of Public Rulemaking (ANPR) for the new Pesticides Registration Review
            Program was issued on schedule.
Performance Measures:
Issue Registration Review rule
FY 1999
Actuals
FY2000
Actuals
FY2001
Estimate
FY2002
Request
            1 ANPR     1 Proposed  1 Final
                                    rule
Baseline:    FQPA requires that EPA establish a registration review program to review active ingredients
            every 15 years.

            Research

Research to Support FQPA

In 2002     For food-use products, develop innovative methods, measurements, and models for measuring and
            predicting pesticide exposures and effects, conduct assessments of pesticide risk to children's
            health, and improve characterization of differential risks to infants and children.

In 2001     Develop pesticides exposure and effects data, risk assessment methods and models for children,
            and control technologies needed to comply with the requirements of FQPA.

In 2000     EPA provided improved methodologies to evaluate the risk to human health posed by food-use
            products by completing the products listed below and other research activities.
                                                   111-29

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Performance Measures:
First generation multimedia,
multipathway exposure model for
infants and young children and
the identification of critical exposure
pathways and factors.

Develop and validate a new and improve
an existing method to evaluate the effects
of pre- and perinatal exposure to pesticides
and other toxic substances.

Develop a method to evaluate the human
health effects of cumulative exposure to
pesticides and other toxic substances.

Develop dose-response relationships to
evaluate risks to human health from
exposures to mixtures of pesticides and
other toxic chemicals with the presumed
same mode of action.

Describe age-dependent differences in
responses to one or more pesticides

Develop a protocol for conducting
an exposure analysis for children that
includes all relevant pathways.

Summary and comparison of multiple
toxicities following developmental
exposure to pesticides: Neurotoxicity,
immunotoxicity, and reproductive toxicity.

Develop a prototype
source-to-exposure-to-dose modeling
framework that enables the complex
computation for human exposure modeling.

Analysis and report on factors for
children's exposure to pesticides that may
lead to high-level, short-term exposure
to pesticides.

Advance the human exposure and
dose model by improving the modules for
dermal and dietary exposure.

Report - Database of Body Burden
Measurements of Pesticides and Toxic
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
            30-Sep-2000
            30-Sep-2000
                                    model
                                    method
                                                method
            30-Sep-2000
                                                evaluation
                                                protocol
                                                analysis
                                                model assessment
                                                report
                                                modules
                                                   111-30

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Chemicals to support future analysis of
aggregate exposure and risk.

NHEXAS: Evaluate available measurement
data on aggregate human pesticide exposures
in the NHEXAS probability sample of people
in 3 areas of the U.S.
1
                     report
evaluations
Baseline:   Currently, there is limited understanding of when and why infants' and children's exposures and
          effects are different from those of adults. .In addition, while health effects information exists for
          individual pesticides, few data are available on the potential combined health effects resulting
          from exposure to mixtures of pesticides and toxic chemicals. Improved risk assessment methods
          will be developed to better predict age-related susceptibilities and actual human exposures and
          differences in exposures in causing  variation  in adverse health effects within the general
          population and vulnerable subgroups including infants and children.
Verification and Validation of Performance Measures

Performance Measure:     Number of Products Reregistered
                            Number of Reregistration Eligibility Decisions

Performance Database:   Pesticide Regulatory Action Tracking System (see description under Goal
3, Objective 1).

Performance Measure:     Number of tolerance reassessments

Performance Database:  Tolerance Reassessment Tracking System (TORTS) is an in-house (Office
of Pesticide Programs-wide) system containing records on all 9,721  tolerances subject to reassessment.
It contains numbers of total tolerances reassessed; breakout by Fiscal Year, source, & priority group;
outcomes of reassessments (number of tolerance levels raised, lowered, revoked, remaining same).  It
also provides count of tolerances  reassessed for organophosphates, carbamates, organochlorines,
carcinogens and high hazard inerts, children's foods, and minor uses.

Data Source: Office of Pesticide Programs (OPP) Staff (reviewers)

QA/QC Procedures: Program output

Data Quality Review: Management reviews the program output counts.  Tolerance counting rules
reviewed for consistency across programs.

Data Limitations: None

New / Improved Data or Systems: Database (Office of Pesticide Programs Information Network)
consolidates various OPP program databases.
                                             111-31

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Coordination with Other Agencies

       USDA supplies EPA with important data on food consumption, pesticide use and pesticide
residues on foods. The data are used in making reregistration and tolerance setting decisions. USDA's
Pesticide Data Program (PDP) collects pesticide residue data through the cooperation of 10 participating
states.  FDA monitors  food  imports and also conducts the Total Diet Study, monitoring pesticide
residues present in prepared food. The states provide support services in collection and testing of
commodities for pesticides using uniform national standard operating procedures.

       EPA also actively solicits advice and comments on the implementation of pesticide programs
from key stakeholders and the public. EPA works with other government officials, regulated industry,
agricultural and other user groups, food processors, academia, environmental and public interest groups,
the international community and the media to reach all interested parties.

       In implementing FQPA, EPA has  consulted with key constituencies on a wide range of critical
issues. Standing committees that are providing, or have provided advice to EPA include:

•      The Food Safety Advisory Committee (FSAC)—created to specifically provide advice from
       grower groups, industry, public health organizations, Congress and academia. FSAC held its
       final  meeting in December 1996.

*      The Endocrine Disrupters Screening and Testing Advisory Committee (EDSTAC)--established
       to give advice and counsel on developing  a strategy to screen and test endocrine disruptinr
       chemicals and pesticides—includes representatives of industry, state and federal government.,
       public health, environmental, labor organizations, small businesses and academia.

•      The Pesticide Program Dialogue Committee (PPDC)--a previously chartered group designed to
       assist EPA in making decisions related to pesticide regulation—consists of a diverse group of
       representatives with a broad range of interests. The PPDC will provide EPA with continuing
       advice on implementation of FQPA.

*      EPA's FIFRA Science Advisory  Panel (SAP) and Science Advisory Board (SAB) provide
       independent scientific peer review.

•      The  State FIFRA Issues Research and Evaluation Group (SFIREG) allows state  input and
       comments from the public.

•      The Consumer Labeling Initiative (CLI)--established to learn how to make important health, safe
       use and environmental information on household product labels easier to find, read, understand
       and use-includes members from EPA, industry, other federal and state agencies and private
       groups.
                                           111-32

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•      Committee to Advise on Reassessment and Transition (CARAT). The purpose of CARAT is
       to provide advice and counsel to the Administrator of EPA and the Secretary of Agriculture
       regarding strategic approaches for pest management planning and tolerance reassessment for
       pesticides as required by the Food Quality Protection Act of 1996. CARAT is preceded by the
       Tolerance Reassessment Advisory Committee.

       Research

       EPA, in collaboration with the National Institute for Environmental Health Sciences (NIEHS),
has established Centers for Children's Environmental Health and Disease Prevention to define the
environmental influences on asthma and other respiratory diseases, childhood learning, and growth
development. NIEHS and the National Toxicology Program (NTP) develop new technologies for high
throughput toxicity testing, and these agencies are responsible for one-third of all  to.xi.city testing
performed world-wide.

        Centers for Disease  Control  and Prevention  (CDC), through  the National Center  for
Environmental Health (NCEH), studies health problems associated with human exposure to lead,
radiation, air pollution, and other toxicants, as well as to hazards resulting from technologic or natural
disasters. These are mainly surveillance and epidemiology studies. NCEH is particularly interested in
studies that benefit children, the elderly, and persons with disabilities. The NCEH laboratory supports
many of EPA studies and will be the laboratory for samples collected in the EPA-sponsored pesticide
study in National Health and Nutrition Examination Survey - NHANES-4.  The National Center for
Health Statistics (NCHS) of CDC is conducting the (NHANES)-4. NHANES-4 is a population based
survey of the national population and includes data on potentially sensitive subpopulations such as
children and the elderly.  EPA is participating in this survey with NCHS  to collect information on
children's exposure to pesticides and other environmental contaminants
Statutory Authorities:

Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)

Federal Food, Drug and Cosmetic Act (FFDCA)

Food Quality Protection Act (FQPA) of 1996

Toxic Substances Control Act (TSCA)

       Research

Food Quality Protection Act of 1996 (FQPA)

Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)


                                          111-33

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Toxic Substances Control Act (TSCA)




Federal Food, Drag, and Cosmetic Act (FFDCA)
                                      111-34

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Goal 4: Preventing Pollution

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Environmental Protection Agency
2002 Annua! Performance Plan and Congressional Justification
Table of Contents
Goal 4: Preventing Pollution and Reducing Risk in Communities, Homes,
               Workplaces and Ecosystems	,	IV-1
       Reduce Public and Ecosystem Risk from Pesticides	IV-14
       Reduce Risks from Lead and Other Toxic Chemicals  	IV-24
       Manage New Chemical Introduction and Screen Existing Chemicals for Risk	IV-33
       Ensure Healthier Indoor Air	,	TV-47
       Facilitate Prevention, Reduction and Recycling of PBTs and Toxic Chemicals	IV-56
       Assess Conditions in Indian Country	   IV-76

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                              Environmental Protection Agency

             FY 2002 Annual Performance Plan and Congressional Justification

     Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
                                          Ecosystems
Strategic  Goal:   Pollution prevention  and risk management strategies aimed at eliminating,
reducing, or minimizing emissions and contamination will result in cleaner and safer environments
in which all Americans can reside, work, and enjoy life,  EPA will safeguard ecosystems and
promote the health of natural communities that are integral to the quality of life in this nation.
                                      Resource Summary
                                     (Dollars in thousands)
                                            FY 1999
                                            Enacted
             FY2000
             Actual
            FY2001
            Enacted
            FY 2002
            Request
Goal 04  Preventing Pollution and Reducing
         Risk in Communities, Homes,
         Workplaces and Ecosystems

Obj. 01  Reduce Public and Ecosystem Risk
         from Pesticides

Obj. 02  Reduce Risks from Lead and Other
         Toxic Chemicals

Obj. 03  Manage New Chemical Introduction
         and Screen Existing Chemicals for Risk

Obj. 04  Ensure Healthier Indoor Air.

Obj. 05  Facilitate Prevention, Reduction and
         Recycling of PBTs and Toxic
         Chemicals

Obj. 06  Assess Conditions in Indian Country

                Total Workyears
$241,900.5     $273,624.3     $301,113.7    $297,572.3
 $43,240.2


 $34,262.3


 $41,223.4


 $29,095.7

 $41,923.2
$49,322.3
$51,453.5
   1,137.8
  1,249.8
  1,171.3
$54,472.9
$37,839.9      $34,304.2      $34,741.7



$55,286.8      $64,915.8      $65,233.1



$34,612.0      $38,634.2      $37,854.0


$42,130.7      $47,448.3      $40,661.2
 $52,155.7      $54,432.6      $64,357.7      $64,609.4
  1,161.7
'For proper comparison with the FY 2002 request, the historic data has been converted to be consistent with the new 2000 Strategic Plan structure. Goal and Objective resources
far FY 1999, FY 2040, and FY 2001 may therefore differ from the resources reported in the FY 2001 Annual Plan and Budget and the FY 2000 Annual Report,
                                              IV-1

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Background and Context

       The underlying principle of the  activities in this goal is  the application of pollution
prevention.  Preventing pollution before  it may harm the environment or public is cheaper and
smarter than costly cleanup and remediation. EPA uses a number of approaches to protect public
health and the nation's ecosystems from the risks of exposure to pesticides or toxic chemicals. In
1998, Toxic Release Inventory (TRI) facilities reported a total of 10.2 billion pounds of pollutants
released, treated or combusted for energy. Reducing waste, and reducing the toxic chemicals that
are used  in industrial processing, protects the environment and also improves efficiency, thereby
lowering costs for industry. Pollution prevention involves changing the behavior of those that cause
the pollution and fostering the wider use of preventive practices as a means to achieve cost effective,
sustainable results. For example, the Design for the Environment and Green Chemistry programs
strive to  change the behavior of chemists and engineers to incorporate pollution prevention and
environmental risk considerations in their daily work.

       In Goal  4, the Agency targets certain chemicals of high risk as well as the full range of
pollutants addressed by the pollution prevention program. Many chemicals are particularly toxic to
children. For instance, at high levels, lead damages the brain and nervous system and can result in
behavioral and learning problems in children. Despite a dramatic reduction in lead exposure among
young children over the last twenty years, there are still approximately 900,000 children in the U.S.
with elevated blood lead levels.  Exposure to asbestos, polychlorinated biphenyls (PCBs) and other
chemicals in our buildings and in the environment poses risks to humans as well as wildlife. For
other common chemicals, the risks may not be known.  The screening and testing of chemicals about
to enter the market, combined with the review of the most common chemicals already in use through
the Chemical Right-to-Know Program, fills gaps in our knowledge about the effects of chemicals
on human health and the environment.
Means and Strategy

       The diversity and sensitivity of America's environments (communities, homes, workplaces
and ecosystems) requires EPA to adopt a multi-faceted approach to protecting the public from the
threats posed by pesticides, toxic chemicals and other pollutants.  The underlying principle of the
activities in this goal is the application of pollution prevention, which can be cheaper and smarter
than cleanup and remediation, as evidenced by the high cost of Superfund, Resource Conservation
and Recovery Act (RCRA), and Polychlorinated Biphenyls (PCB) cleanups. Pollution Prevention
(P2) involves changing the behavior of those that cause the pollution and fostering the wider use of
preventive practices as a means to achieve effective, sustainable results.

       Under this Goal, EPA ensures that pesticides and their application methods do not present
unreasonable risks to human health, the environment, and ecosystems.  In addition to the array of
risk-management measures entailed in the registration authorities under the Federal Insecticide,
Fungicide, and Rodentcide Act (FIFRA) for individual pesticide ingredients, EPA has specific
                                          IV-2

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programs to foster worker and pesticide-user safety, ground-water protection, and the safe, effective
use of antimicrobial agents. These programs work to ensure the comprehensive protection of the
environment and wildlife, endangered species in particular,  and to reduce the contribution  of
pesticides to ecological threats such as pollutant loading in select geographic areas.  Within this
context, EPA pursues a variety of field activities at the regional, state and local levels, including the
promotion of pesticide environmental stewardship. EPA is also addressing emerging threats such
as endocrine disrupters by developing and implementing new screening technologies to assess a
chemical's impact on hormonal activity. Finally, EPA promotes the use of sensible Integrated Pest
Management (IPM) and the prevention of pesticide misuse in the panoply of uses within both the
urban and rural environments.

       The Agency remains committed to  safeguarding  our Nation's communities, homes,
workplaces and ecosystems.  Preventing pollution through regulatory, voluntary, and partnership
actions — educating and changing the behavior of our 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 pursues a number
of these pollution prevention programs with both of the these  groups.  Likewise, improved
understanding  of the potential risks to health from airborne toxic chemicals present indoors may
strengthen our ability to reduce residents' exposure through voluntary changes in behavior and
through potential product reformulation.

       Preventing  pollution through partnerships is central to Agency chemical right-to-know
activities. These activities include providing the public with information on the basic health and
environmental effects of the 2,800 highest production volume (HPV) chemicals in the United States
(chemicals manufactured in or imported into the U.S. in quantities of at least 1 million pounds).
Most residents come into daily contact with many of these chemicals, yet relatively little is known
about then" potential impacts. Getting basic hazard testing information on large volume chemicals
is the  focus of the "HPV Challenge Program," a voluntary program recognizing industry's
contribution to the public knowledge base on these prevalent chemicals. More than 469 companies
have committed to voluntarily provide these test data for more than 2,155 of the HPV chemicals -
a remarkable partnership between government and the private sector. The Agency intends to further
evaluate whether additional testing is warranted for chemicals to which children are exposed.

       Children's health is also the continuing focus of the multi-agency initiative begun in F Y 2000
to combat asthma in children. Efforts in FY 2002 will target reductions in the presence of indoor
triggers of asthma, such as environmental tobacco smoke and biological contaminants, by continuing
to educate the public about the disease and about the steps they can take to reduce the severity and
frequency of asthma attacks. Additional voluntary work will be undertaken by schools to empower
their students to manage their asthma symptoms better, by school personnel to improve the indoor
environments of their schools, and by health care personnel to incorporate education about managing
environmental asthma triggers into asthma treatment plans for their patients. Partnerships with non-
profit environmental and public health organizations with a particular focus on children are used to
bring about these voluntary reductions in exposure to asthma triggers found indoors. Achieving the
                                          IV-3

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goals of the multi-agency effort to maintain the government's efforts to combat asthma in children
requires effective collaboration between EPA and other Federal agencies.

       Also central to the Agency's work under this goal in FY 2002 will be continued attention on
documenting and taking action to reduce potential risk from persistent, bioaccumulative and highly
toxic chemicals (PBTs) and from chemicals that have endocrine disruption effects. PBT chemicals
are of particular concern not only because they are toxic but also because they may remain in the
environment for a long period of time, are not readily destroyed, and may build up or accumulate
to high concentrations in plant or animal tissue.  In cases involving mercury and PCBs, they may
accumulate in human tissue.

       The Agency  mixes both regulatory and voluntary methods to accomplish its  job.  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.  This new chemical review process not only protects the
public from the possible immediate threats of harmful chemicals, like 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.  This awareness has led industry to produce safer "greener" alternative chemicals and
pesticides.  Fewer harmful chemicals are entering the marketplace and our environment today
because of the New Chemicals Program.

       The Design for the Environment (DfE), Green Chemistry Program and Green Engineering
(GE) build on and expand the new chemistry efforts. They target industry and academiato maximize
pollution prevention. Our DfE Program forms partnerships with industry to find sensible solutions
to prevent pollution.  In one example, taking a sector approach, EPA has worked with the electronics
industry to reduce the use of formaldehyde and other toxic chemicals in the manufacture of printed
wiring boards.  Our Green Chemistry Program also forms partnerships with industry and the
scientific community to find economically viable technical solutions to prevent pollution.  In
addition,  the  Green Engineering Program works with the American  Society of Engineering
Education (ASEE) to incorporate GE approaches into engineering curricula.

       The Pollution Prevention Framework is another example of EPA successfully influencing
industry's approach to chemical selection prior  to  commercialization.   The P2 Framework
accomplishes the following: (1) integrates analytical methods and tools that help predict exposures
and  risks of chemicals, based on  chemical structure and estimates of environmental releases and
exposure;  (2) allows stakeholders to evaluate and compare chemical  choices and to identify
environmentally preferable products and processes; and (3) helps industry identify risk issues early
in product development, when pollution prevention opportunities are most cost-effective. In 2001
and 2002 EPA is using the P2 Framework as part of the Sustainable Futures effort to help companies
shorten the review cycle for introduction of new safer chemicals into commerce, thereby benefitting
the environment, the companies and EPA.
                                         IV-4

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       In several cases, achieving the strategic objectives under this goal is a shared responsibility
with other federal and state agencies. For example, EPA's role in reducing the levels of childrens
lead exposure involves promotion of federal-state partnerships to lower specific sources of lead to
children, primarily from addressing lead-based paint hazards.  These partnerships emphasize
development of a professional infrastructure to identify, manage and abate lead-based paint hazards,
as well as public education and empowerment strategies, which fit into companion Federal efforts
with Department of Health and Human Services (HHS), Department of Defense (DOD), Department
of Energy (DOE), Department of Justice (DOJ), Centers for Disease Control (CDC), and Department
of Housing and Urban Development (HUD). These combined efforts help to monitor lead levels in
the environment, with the intent of virtually eliminating lead poisoning in children.

       Intrinsic to the effort to prevent pollution is the minimization of the quantities of waste
generated by  industry,  government  agencies, and hazardous-waste management  operations.
Strategies range from fostering materials reuse and recycling and other resource-recovery processes
to broad-based campaigns to re-engineer the  consumption and use of raw materials or personal
conservation of resources. Effective and sustainable programs reduce the need for storage, treatment
or disposal of hazardous or municipal wastes, while reducing costs to industry and municipalities.

       Since this  Goal focuses on how the public lives in communities, it features the Agency's
commitment of fulfilling its responsibility for assuring human health and promoting environmental
protection in Indian Country. EPA's policy is to work with tribes on a government-to-government
basis that affirms the vital trust responsibility that EPA has with 572 tribal governments and remain
cognizant of the Nation's interest in conserving the cultural uses of natural resources.

       Research

       Currently, there  are significant gaps with regard to the  understanding of actual human
exposures to pesticides and toxic substances in consumer products in residential environments and
potential human health  risks from such exposures to the general population and susceptible
subpopulations, such as infants and children.   Methods for detecting and  estimating human
exposures to these chemical stressors are extremely limited.  Health effects  information is not
available for most of these stressors. Tool that are currently available to control or prevent exposures
are also limited to certain processes or materials. To reduce human health and ecological risks,
research is needed to develop/improve methods to evaluate hazard on human health endpoints,
models to improve the biological basis for human health risk assessment, and methods to identify
ecological hazards, predict ecological risk, and characterize environmental stressor interactions.  In
F Y 2002, the Agency will continue to support both human health and ecosystems research to reduce
risks and improve the environmental safety of our communities.
                                          rv-s

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Strategic Objectives and FY 2002 Annual Performance Goals

Objective 01: Reduce Public and Ecosystem Risk from Pesticides

»     Implementation of 10-15 model agricultural partnership projects that demonstrate and
      facilitate the adoption of farm management decisions and practices that pro vide growers with
      a "reasonable transition" away from the highest risk pesticides.

Objective 02: Reduce Risks from Lead and Other Toxic Chemicals

•     Implement certification and training of lead abatement professionals.

Objective 03: Manage New Chemical Introduction and Screen Existing Chemicals for Risk

•     Of the approximately 1,800 applications for new chemicals and microorganisms submitted
      by industry, ensure those marketed are safe for humans and the environment. Increase
      proportion of commercial chemicals that have undergone Pre-Manufacturing Notification
      review to signify they are properly managed and may be potential green alternatives to
      existing chemicals.

•     EPA will make publicly  available screening level hazard data and Assessments for 8% of
      the 2800 High Production Volume chemicals, as part of the Agency's implementation of a
      comprehensive strategy for screening, testing, classifying & managing the potential risks
      posed by commercial chemicals.

Objective 04: Ensure Healthier Indoor Air

•     848,000 additional people will be living in healthier residential indoor environments.

•     1,228,500 students, faculty and staff will experience improved indoor air quality in their
      schools.

Objective 05: Facilitate Prevention, Reduction and Recycling of PBTs and Toxic Chemicals

*     Divert an additional 1 % (for a cumulative total of 31 % or 69 million tons) of municipal solid
      waste from land filling and combustion, and maintain per capita generation of RCRA
      municipal solid waste at 4.3 pounds per day.

•     The  quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or
      combusted for energy recovery in 2002, (normalized for changes in industrial production)
      will  be reduced by 200 million pounds, or 2%, from 2001.  This data will be reported in
      2004.

Objective 06:  Assess Conditions in Indian Country

                                        IV-6

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       Baseline environmental information will be collected for 38% of Tribes (covering 50% of
       Indian Country).
Highlights

       EPA seeks to prevent pollution at the source as the first choice in managing environmental
risks to humans and ecosystems. Where pollution prevention at the source is not a viable alternative,
the Agency will employ risk management and cost effective remediation strategies.   Reducing
pollution at the source  will be  carried out using  a multi-media approach in the following
environmental problem areas:

Reduce Public and Ecosystem Risks from Pesticides

       Reducing risk from exposure to pesticides requires a multi-faceted approach. Beyond being
exposed through the food we eat, the general public, applicators, and farm workers may be exposed
to pesticides through direct handling, groundwater contamination or aerial spray. One intent of the
Food Quality Protection Act (FQPA) is to protect the public by shifting the nation toward safer
pesticide use.  Appropriate transition strategies to safer pesticides are important to the nation to
avoid disruption of food supply or sudden changes in the market that could result from abruptly
terminating the use of a pesticide before well-targeted safer equivalents can be identified and made
available. For these reasons, the strategic agricultural partnership program continues to be an
important priority in  2002.  The initiative develops alternative pest management tools and
approaches. The Agency will continue to work closely with industry, agricultural pesticide users and
other stakeholders to effectively transition to the safer pesticides and pest management practices
envisioned by the FQPA.  In 2002, the initiative will continue efforts to reach more farmers,
encourage them to adopt safer pesticides, use environmental  stewardship and integrated pest
management practices, and adopt a "whole farm" approach to environmental protection.

       In 2002, through the Certification and Training  (C&T)  and Worker Protection (WP)
programs, EPA will  continue training and educating farm workers and employers on the dangers
of pesticides and good  worker safety practices.   EPA will continue to protect  the Nation's
ecosystems and reduce  impacts  to endangered species through  the  Pesticide Environmental
Stewardship Program (PESP) and integrated pest management (IPM). The Agency will emphasize
efforts with our tribal partners to address pesticide issues and enhance the development of tribal
technical capacity, particularly in the areas of risk management, worker safety, training, and pollution
prevention.

       Together, the WP and the C&T programs address the problem of worker pesticide exposure.
These programs safeguard workers from occupational exposure to pesticides by providing training
for workers, employers, and pesticide applicators and handlers.   Training and certification of
applicators of restricted use pesticides further ensures that workers and other vulnerable groups are
protected from undue pesticide  exposure and risk.  Recertification  requirements keep  their
knowledge current with label changes and application improvements. The Groundwater Strategy,

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a cooperative effort with states and regions to develop Pesticide Management Plans (PMPs), will
further efforts to prevent pesticide pollution of surface and groundwaters. The Endangered Species
program will enlist the support of the agricultural community and other interested groups to protect
wildlife and critical habitats from  pesticides.   This voluntary program is carried out through
communications and outreach efforts and in coordination with other federal agencies. The Pesticide
Environmental Stewardship Program (PESP) and Integrated Pest Management (IPM) play pivotal
roles in moving the nation to the use of safe pest control methods, including reduced risk pesticides,
These  closely related  programs promote risk  reduction through  collaborative efforts with
stakeholders to utilize safer alternatives to traditional chemical methods of pest control.

       Antimicrobial sterilants and disinfectants are used to kill microorganisms on surfaces and
objects inhospitals, schools, restaurants and homes. Antimicrobials require appropriate labeling and
handling to ensure safety and efficacy.  EPA remains  focused on accurate product labeling and
product efficacy and meeting other requirements for antimicrobial sterilants set forth by FQPA.

Reduce Risks from Lead and Other Toxic Chemicals

       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. During FY 2002, EPA will continue implementing its
comprehensive program to reduce the incidence of lead poisoning and elevated blood levels in
children nationwide.

       During 2002, EPA will continue the Lead Based Paint Training & Certification Program in
all fifty states through EPA authorized state, territorial or tribal programs or, in states and territories
without EPA authorization, through direct implementation by the Agency.  In the lead regulatory
program, EPA will propose one major rule setting standard for deleading of buildings and structures,
and work towards finalizing a major rule on training and certification for renovation and remodeling
activities.

       EPA will continue to implement the new Lead Hazards Standards Rule, the Lead Renovation
Information Rule and the Real Estate Notification & Disclosure Rule. EPA is working with other
Federal Agencies including Department of Health and Human Serviced (HHS), Department of
Housing and Urban Development (HUD), Department  of Defense (DOD), Department of Energy
(DOE), Consumer Product Safety  Commission (CPSC), and Department of Justice (DOJ) on
implementing a Federal Strategy to virtually eliminate lead poisoning.

       For other chemicals whose significant risks are well established (such as PCBs, asbestos, and
dioxin), reductions in use and releases are important to reducing exposure of the general population
as well as sensitive sub-populations. In FY 2002, EPA's PCS control efforts will encourage phase-
out of PCB electrical equipment, ensuring proper waste disposal methods and capacity, and fostering
PCB site cleanups. The Agency plans to develop an dioxin strategy to respond to the latest science
and address dioxin risk management in a more comprehensive cross-media approach. EPA is also
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continuing work on identifying and quantifying the link between dioxin sources and the general
population exposure.

Manage New Chemical Introduction and Screen Existing Chemicals for Risk

       Under TSCA, EPA  identifies and controls unreasonable risks associated with chemicals.
The chemical right-to-know program addresses a critical gap in the nation's knowledge about the
health and environmental hazards of high production volume chemicals (HPVs). EPA is working
withindustry to put information about those chemicals into the hands of the public so they can make
better and more informed consumer choices.

       Another Agency priority is implementation of the Endocrine Disrupter Screening Program
(EDSP). The EDSP is based on the recommendations of the Endocrine Disrupter Screening and
Testing Advisory Committee (EDSTAC), which provided advice and counsel to the Agency on a
strategy to screen and test chemicals and pesticides that may cause endocrine disruption in humans,
fish, and wildlife.  In 1999, EPA began the validation of EDSP screening test protocols which will
be completed in 2001. By 2005, EPA anticipates that all high production volume chemicals will be
screened for endocrine disrupting potential. The resulting priority chemicals will be tested using the
approach and test methods developed from recommendations of the EDSTAC.

       In 2002, EPA will also continue work in the areas of existing chemicals, new chemicals,
and national program chemicals (including lead, fibers, dioxin, PCBs, and mercury).  The Agency
reviews  chemicals  already  in commerce, along with  chemicals  or microorganisms before
commercialization (i .e., "new" chemicals) to determine whether they can be handled and used safely.
Another approach to safer chemicals is green chemistry, which identifies opportunities for increasing
the design, development and use of less toxic chemicals  and chemical processes.

Ensure Healthier Indoor Air

       In FY 2002, the Indoor Environments program will continue to build on work begun in FY
2000 and FY 2001 to protect children's health by reducing the presence of indoor triggers of asthma
in homes and schools where children spend the majority of their time. In particular, the Agency will
continue its education and outreach activities which implement portions of "Asthma  and the
Environment: An Action Plan to Protect Children," the inter-agency plan developed under the Task
Force On Environmental Health Risks and Safety Risks to Children (January 1999). EPA's activities
are designed to increase the understanding that children with asthma, parents, caregivers, health
professionals and school personnel  have  about the links between the condition of the indoor
environment and asthma. Outreach and education efforts can empower the public to take voluntary
actions to improve the quality of their indoor environment. EPA will continue to work in close
collaboration with the Department of Health and Human Services' Centers for Disease Control and
the National Institutes of Health.  EPA will continue its agreement with the Advertising Council to
use television, print, and other media channels to educate  the public about the seriousness of the
asthma epidemic, and about the steps they can take to identify and reduce asthma triggers in their
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own environment. In addition, the Agency will continue its efforts to improve indoor air quality in
Tribal lands.

Facilitate Prevention, Reduction and Recycling of PET's and Toxic Chemicals

       Pollution prevention and waste minimization require a comprehensive effort of minimizing
the quantity andtoxicity of waste generated by industries, the government and individual citizens.
EPA's role includes several specific activities addressing industrial hazardous waste and municipal
and industrial solid waste.

       Preventing pollution can be cost-effective to industry in cases where it reduces excess raw
materials and energy use.  P2 can also reduce the need for expensive "end-of-pipe" treatment and
disposal, enable firms to avoid potential liability, and support quality improvement incentives in
place at facilities. Current EPA strategies include institutionalizing preventive approaches in EPA's
regulatory, operating,  and compliance/enforcement programs  and facilitating the adoption  of
pollution prevention techniques by states, tribes, the academic community and industry.

       One approach the Agency employs is the industrial sector-based focus that promotes cleaner
technologies leading to a reduction of risks to health and the environment. EPA's Design for the
Environment (DfE)  Program works in partnership with  industry to develop  comparative risk,
performance, and cost information about alternative technologies, chemicals, and processes in order
to make environmentally informed business decisions.

       EPA is a leader in reducing generation of municipal and industrial solid waste regulated
under RCRA Subtitle D and in improving the recovery and conservation of materials and energy
through source reduction and recycling. EPA encourages source reduction of municipal solid waste
through its Waste Wise program and encourages recycling and the recycling market through such
programs as Pay As You Throw and Jobs Through Recycling. In addition, working with public and
private  sector stakeholders,  EPA  has promoted financing and technology  opportunities for
recycling/reuse businesses. In  2002, the  Agency will serve as a catalyst for  innovative  source
reduction and recycling in many industrial sectors, including waste reduction opportunities for
construction and demolition  debris, food wastes, tires, electronics  equipment, carpet, transport
packaging, and plastic beverage packaging.

       In the hazardous waste arena, regulated under RCRA Subtitle C, the Agency is focusing on
reducing the presence  of the most persistent, bioaccumulative and toxic (PBT) chemicals  hi
hazardous waste by 50 percent by 2005 (compared to a 1991 baseline). This goal is consistent with
othernational and international priorities for reducing the presence of PBTs in the environment. In
2002 the Agency will encourage and support implementation at the Regional, state and local levels
through voluntary pollution prevention partnerships that make economic sense while they decrease
human and environmental exposure to toxic wastes.

       The Agency will continue reducing the barriers to safe recycling of hazardous waste through
changes to recycling regulatory standards and ongoing outreach to stakeholders to explore additional

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options. The Agency will be focusing particularly on ways to increase safe hazardous waste recycling
while reducing burden for small businesses such as printing, electronics recyclers, and metal
finishing.

Assess Conditions in Indian Country

       EPA places particular priority on working with Federally Recognized Indian Tribes on a
government-to-government basis to  improve environmental conditions in Indian country in a
manner that affirms the vital trust responsibility that EPA has with some 572 Tribal governments.
The Agency will concentrate on building Tribal programs and completing a documented baseline
assessment of environmental conditions for 38% of Tribes (covering 50% of Indian Country).
These assessments  will provide a blueprint for planning future activities identified  in Tribal/EPA
Environmental Agreements (TEAs) or similar tribal environmental plans to address and support
priority environmental multi-media concerns in Indian country.

       In 2002, EPA is requesting a total of $52.5 million for Indian General Assistance Program
grants. These resources will allow 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.

       EPA continues to consider additional approaches for how EPA and Indian Tribes might work
together to protect public health and the environment in Indian country. As part of that effort, EPA
is proposing to continue authority granted in F Y 01 to enter into cooperative agreements with Tribes
to assist EPA in implementing environmental programs in instances where the  Tribe has  not
achieved primacy. Implementation of this approach would allow for a more gradual transition to full
program authorization by allowing for varying degrees of Tribal involvement based on an individual
Tribe's capabilities and interests.  Agency-wide EPA Tribal funding has grown from about $38
million to $218 million in the last decade .

       Research

       Health effects research in F Y 2002 will continue to focus on development of mechanistically-
based predictive models for human health risk assessment, such as structure-activity-relationship
models to help determine testing needs under Section 5 of TSCA, which addresses new chemicals.
Research will also be conducted to address the needs for methods to evaluate the special sensitivities
of certain subpopulations based on age,  genetic factors and health status.  Also, risk assessment
research will continue to  develop the  tools, methodology, and data to  conduct probabilistic
assessments of ecological risk from exposure to pesticides, including the development of user
friendly models that  link distributions of exposure and  toxicity to estimate  the magnitude  and
probability of effects.

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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.  EPA relies heavily on
partnerships with States, Tribes, local governments, the public and regulated parties to protect the
environment and human health. In addition, 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, as necessary. EPA also works with these agencies to coordinate with other
countries and international organizations with which the United States shares environmental goals.
This plan discusses the mechanisms and programs that the Agency employs 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. In
addition, much of the success of EPA programs depends on the voluntary cooperation of the private
sector and the general public.

       Other factors that could delay or prevent the Agency's achievement of some objectives
include: lawsuits that delay or stop EPA's and/or State partners' planned activities; new or amended
legislation;  and new commitments within the Administration. Economic growth and changes in
producer and consumer behavior, such as shifts in energy prices or automobile use, could have an
influence on the Agency's ability to achieve several of the objectives within the time frame specified.

       Large-scale accidental releases or rare catastrophic natural events could, in the short term,
impact EPA's ability to achieve the objectives. In the longer term, new environmental technology;,
unanticipated  complexity  or  magnitude  of environmental  problems,  or  newly  identified
environmental problems and priorities could affect  the timeframe for achieving many of the goals
and objectives. In particular, pesticide use is affected by unanticipated outbreaks of pest infestations
and/or disease factors, which require EPA to review emergency uses to ensure no unreasonable risks
to the environment will result.  EPA has no control over requests for various registration actions
which include among others new products, amendments, and uses, so its projection of regulatory
workload is subject to change.

       To achieve our collective goal of healthy  indoor environments, EPA collaborates with
Federal, state and local government agencies, industry, and non-profit organizations to conduct non-
regulatory public outreach and education, provide incentives, and encourage voluntary actions.
These  are the primary methods  EPA uses to influence individuals (e.g., homeowners, school
administrators,  parents, building owners) to take action to reduce their health risk. A key external
factor which may impact the successful attainment of the indoor environments goal is the ability of
states to leverage resources to achieve adequate results in the absence of ftmds devoted specifically
to indoor air quality. In many  cases, resources are limited and compete with Federally mandated
regulatory programs (Environmental Law Institute Research Report on State and Local Indoor Air
Quality Programs, November, 1997.)
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       The Agency's ability to achieve its objective of facilitating prevention, reduction and
recycling of PBTs and toxic chemicals could be impacted by the increased flexibility provided to
redirect resources under the National Environmental Performance Partnership System (NEPPS). If
states redirect resources away from this area, it would impact both annual performance and progress
implementing the Agency's strategic plan. To mitigate this potential issue, EPA is working with the
Environmental Council of States (ECOS) to develop core measures and coordinating with states to
reduce Persistent, Bioaccumulative, and Toxics (PBT) in hazardous waste and develop tools that will
focus state activities on shared EPA and state goals.

       In addition, recycling rates in the U.S. are affected by shifts in market prices for virgin
materials and potential regulatory changes to reduce or eliminate disincentives to safe recycling.
While  market  forces  have helped  to achieve  current  rates,  better markets  for recycled
products/recyclables/reusables  are needed to encourage increased recycling rates and  source
reduction. EPA has worked with other agencies to develop the Federal government's "buy recycled"
program and the Federal Environmental Executive to promote this program and currently has several
other ongoing projects to enhance markets for recycled materials.

       Achieving our objective 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 proj ects
that affect Indian Tribes.
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                           Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

    Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
                                      Ecosystems
Objective #1:  Reduce Public and Ecosystem Risk from Pesticides

       By.2005, public and ecosystem risk from pesticides will be reduced through migration to
lower-risk pesticides and pesticide management practices, improving education of the public and
at risk workers, and forming "pesticide environmental partnerships" with pesticide user groups.
                                  Resource Summary
                                  (Dollars in thousands)

Reduce Public and Ecosystem
Pesticides
Environmental Program &
Science & Technology
FY 1999
Enacted
Risk from $43,240.2
Management $29,281.0
$844.6
State and Tribal Assistance Grants $13,1 14.6
Total Workyears
230.2
FY2000
Actual
$49,322.3
$35,100.2
$1,062.3
$13,159.8
313.4
FY2001
Enacted
$51,453.5
$37,456.8
$911.2
$13,085.5
233.6
FY 2002
Request
$54,472,9
$40,445.0
$942.4
$13,085.5
240.3
Key Programs
(Dollars in thousands)

FY 1999
Enacted
FY 2000
Enacted
FY2001
Enacted
FY 2002
Request
Pesticide Registration

Pesticide Reregistration

Endocrine Disruptor Screening Program
$8,201.8     $11,346.3     $11,986.5    $11,383.3

$5,265.6      $4,517.3      $2,787.0     $2,811.3

 $276.7       $544.0       $750.7       $749.7
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Pesticide Applicator Certification and Training         $10,438.0      $9,391.2    $10,022.5    $10,349.1

Pesticides Program Implementation Grant             $13,114.6     $13,114.6    $13,085,5    $13,085.5

Rent, Utilities and Security                            $0.0      $3,376.7        $0.0     $2,898.4

Administrative Services                              $16.7       $436.2      $481.0      $432.1

Regional Management                                $0.0        $98.0      $115.9      $108.2



FY;2002 Request

       EPA will continue to assistfarmers in transitioning to safer pesticidestand pest management
practices as the Agency continues to implement the Food Quality Protection Act (FQPA) and
restricts oifremoves riskier pesticides from the market. In FY 20024EPA will also continue to use
a "whole farm approach" to pesticide management and pollution prevention.   This approach
simultaneously considers numerous risks associated with the agricultural use of pesticides, including
spray drift, chemical runoff, pesticide disposal, groundwater protection, worker protection, and
pesticide application techniques. This allows the Agency to develop an integrated plan for pollution
prevention. EPA will continue its commitment under this objective to protect agricultural workers,
to certify and train pesticide applicators, to protect endangered species and ecosystems from the
harmful effects of pesticides, to develop and implement environmental stewardship and integrated
pest management pollution prevention strategies and to protect our nation's groundwater  from
pesticide contamination.

Reduce Human Exposure to Pesticide Use

       In 2002, through the Certification and Training Program (C&T) and the Worker Protection
Program (WP), EPA will continue educatingjyorkers, farmers and employers on the  safe use of
pesticides and worker safety. The C&T and the  WP programs protect  agricultural workers,
employers, applicators, handlers and the public from the potential dangers posed by pesticides. The
Worker Protection Standards offer protection to over three and a half million people who work with
pesticides at more than 560,000 workplaces.  The C&T program increases the competence of the
applicators in handling and apply ing pesticides through training and certification (and recertification
everyfthree to five years) of private and commercial applicators of restricted use pesticides.  C&T
and WP also provide safety training for pesticide handlers and agricultural workers.

       EPA will continue efforts to educate the public in the proper use of pesticides tojprevent
household and other pesticide misuse in rural and urban areas focusing on poor communities where
there are proportionate public health risks to residents, especially children. EPA will employ product
stewardship with manufacturers and distributors, and work with states to improve their certification
and training programs.  EPA continues to improve consumer product labels, communicate proper

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handling of pesticide containers and their distribution, and direct enforcement activities to prevent
improper sales of agricultural pesticides. The public education campaign continues, which includes
working with low income and minority communities to  demonstrate  safe and effective pest
management and control.
          -Certification &
          Training of
          Pesticide Applicators
Worker Protection Standard
          Pcstickles &--
National Strategies for
 Health -Caret Providers
       EPA continues to be concerned with the use of certain pesticides that are likely to show up
       in surface water and ground water. The Agency is pursuing options to assess and manage
       pesticide use and contamination potential of those pesticides.

       The Strategic Agricultural Partnership Initiative will continue to develop pest management
strategies as alternatives to harmful pesticides and assist the agricultural industry in meeting state
and Federal safe food standards. EPA will continue to support Agricultural partnership projects that
demonstrate farm management practices and provide growers with information to assist in a
"reasonable transition" away from the highest risk pesticides (those likely to be lost under FQPA
implementation). Regions will continue to lead the development of FQPA transition projects with
commodity groups and provide strategic and technical assistance on project design, implementation,
and evaluation. The "whole farm" approach, conducted in cooperation with USDA and FDA, will
focus on area-specific problems. Due to variations in crops, pests and weather patterns in different
locales, a regional approach will be employed to address local needs. This approach will rely on
partnerships between EPA, state agencies (Departments of Agriculture, Departments of Environment
and Land Grant Universities) and agricultural groups (farm bureaus and major commodity groups).
The first stage of the initiative evaluates current farm operations including pesticide risk reduction
technologies, Integrated Pest Management (IPM) and Best Management Practices (BMPs), soil and
water conservation, handling and storage of hazardous materials and solid waste management.
Model or demonstration sites are used for purposes of outreach, education and compliance assistance
for other agricultural operations throughout the state.
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Reduce Environmental Exposure to Pesticide Use

       In FY 2002, EPA and USDA will continue to provide information about pest control options,
organize and deliver pest management educational programs for agricultural producers, consumers,
and other stakeholders on reduced risk pesticides and alternative pest control methods, such as IPM
and Pesticide Environmental Stewardship (PESP), and develop and evaluate new pest management
technologies.
       The   Pesticide   Environmental
Stewardship  Program  and  Integrated  Pest
Management are closely related programs that
promote  risk  reduction   by  using   safer
alternatives to traditional chemical methods of
pest  control.     PESP   entails  voluntary
partnerships with pesticide users to reduce both
health  and   environmental   risks  while
incorporating pollution prevention  strategies.
Partners and supporters of PESP  play  vital
roles in developing common sense approaches
to pesticide risk reduction.  PESP supporters
have an interest in risk reduction because they
use agricultural products or represent groups
which are affected by pesticides.  This program
was initiated in 1994, prior to FQPA, however,
its focus is consistent with the statute's goals in
reducing   risk   in   agricultural   and
nonagricultural settings. PESP grants provide
assistance  to  partners and  supporters  in
developing and implementing  risk reduction
strategies.  EPA and USDA will continue to
encourage and support IPM practices, fostering
the managed use of an array of pest control
methods (biological, cultural and  chemical)
that achieve the best results with the  least
adverse impact to the environment.
  Integrated Pest Management In Schools

One of EPA's highest priorities is protecting children's
health from unnecessary exposure to pesticides that are
used in their schools to control pests. EPA is
encouraging school officials to adopt Integrated Pest
Management (IPM) practices to reduce children's
exposure to pesticides.

IPM is an effective and environmentally sensitive
approach to pest management that relies on a
combination of common-sense practices. IPM
programs use current, comprehensive information on
the life cycles of pests and their interaction with the
environment. This information, in combination with
available pest control methods, is used to manage pest
damage by the most economical means, and with the
least possible hazard to people, property, and the
environment.

EPA is helping schools understand and implement
IPM through the distribution of printed publications,
awarding grants to start IPM programs, offering
workshops and courses and providing guidance and
assistance through partnerships with universities and
national associations.
       The Endangered Species Protection Program (ESPP), started in 1988, is largely voluntary
and relies on cooperation between the U.S. Fish and Wildlife Service (FWS), EPA Regions, states,
and pesticide users. The Endangered Species Act is intended to protect and promote the recovery
of animals and plants that are in danger of becoming extinct because of human activity. Under the
Act, EPA must ensure that use of pesticides it registers will not result in harm to the species listed
as endangered and threatened, or harm the habitat critical to those species' survival. To implement
the ESPP, labels of certain pesticides direct users to bulletins with information that will protect
endangered and threatened species from harm resulting from pesticide use.
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       In order to protect listed species from detrimental effects from pesticide use, the Agency will
continue to do the following:

•      Use sound science to assess the risk of pesticide exposure to listed species.
*      Attemptto find means to avoid concerns for listed species. When we cannot avoid concerns,
       we then consult with the scientists at the FWS.
•      Implement use limitations by adding a generic label statement; developing county bulletins
       that contain maps of  species' locations arid pesticide  use limitations;   distributing the
       bulletins  and other materials by a wide variety  of methods; and  providing a toll-free
       telephone number to assist users in determining whether they need a bulletin and where to
       obtain one.
•      Encourage individual states to develop their own plans by whatever approach they determine
       is best for them as long as the approach meets the goals of protecting endangered species
       while minimizing the impact on pesticide users.

       States, along with other agencies, are part of the county bulletin review process. The states
are encouraged to include state agricultural, fish and wildlife agencies, as well as pesticide users, in
their review process.

       Antimicrobial sterilants and disinfectants are used to kill microorganisms on surfaces and
objects in hospitals,  schools,  restaurants and homes. EPA registers and regulates antimicrobial
pesticides under the Federal  Insecticide, Fungicide and Rodenticide Act  (FIFRA).  To obtain
registration, manufacturers of antimicrobial products must meet the basic standards, the foremost
being:

•      The product will not cause unreasonable adverse effects to human health or the environment
       and
•      Product labeling and composition comply with the requirements of FIFRA.

       Manufacturers are required to submit to EPA detailed and specific information concerning
the chemical composition of their product; effectiveness data  to document their claims against
specific microorganisms and to support the directions  for use provided in labeling; labeling that
reflects the required elements for safe and effective use; and toxicology data to document any
hazards associated with use of the product.

       Increased concern has emerged regarding whether public health products, used to kill
microorganisms  pathogenic to man on inanimate  surfaces  and  objects in hospitals, schools,
restaurants, and homes, work  as claimed on the label. The private and public sector communities
including competitor registrants, have made the  Agency  aware  of sterilizers and hospital
disinfectants  which may be  ineffective.   Sterilizers and disinfectants are increasingly vital to
containing infections that are resistant to antibiotics in clinical settings. EPA has responded to this
situation by  developing a  comprehensive strategy  to improve the  regulation of antimicrobial
pesticides.
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       One of the main components of the strategy is better coordination with stakeholders and co-
regulators. EPA has greatly improved communications with the public, all levels of government,
academia, user communities, industry, health professionals, trade organizations, and independent
testing groups. The Agency has enhanced and expanded its use of the Internet to educate the general
public about the status and direction of the regulation for antimicrobial products.

       The other key link in the strategy to improve the regulation of antimicrobial products
involves internal Agency processes.  EPA has committed funds to ensure that the tests used to
demonstrate the efficacy of antimicrobial products are reliable and reproducible. Internal controls
are being perfected to ensure the integrity of data submitted by registrants. Further, the Agency is
in the process of developing a complaint system to handle concerns regarding ineffective products.
The Agency is actively working to ensure that all antimicrobial products sold and distributed in the
marketplace are effective in protecting public health and the environment from potential health risks.

       Reducing the risks of pesticide exposure is a particular challenge on tribal lands. Native
Americans consume different sorts of foods from the average, and may have other farming practices.
Their pattern of exposure may diverge from the general public dietary or exposure information
gathered by USDA, FDA or the registrant. Outreach and education tools must be matched to tribal
needs. In 2002, the Agency will continue to team with our tribal partners to address pesticide issues
and enhance the  development of tribal technical capacity, particularly in the areas of risk
management, worker safety, training, and pollution prevention.  The effectiveness of our field
programs on tribal lands is directly related to tribal capacity for pollution prevention. Agency efforts
include the following:

•      Enhancing tribal  environmental  program capacity by  conducting  multi-media  risk
       assessments

•      Providing training and technical assistance for Tribal environmental managers to conduct
       their own assessments and mitigation activities, with a primary emphasis on pollution
       prevention, to  reduce children's exposure to Persistent Bioaccumulative Toxics (PBTs),
       pesticides,  lead and other toxic substances

•      Reviewing and updatingjisk assessment guidelines to assess and^etermine the feasibility,
       overall effectiveness and affordability of the guidelines
FY 2002%Change from FY 2001 Jinacted

EPM

•      (+$1,129,150) This increase reflects an increase in workforce costs.
                                          IV-19

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       (+$996,000, +10 FTE) Reregistration staff that were previously funded under the expired
       maintenance fee will be funded from the appropriated budget. There will be no program
       impact from changing the source of funds,

       (-$598,700) The FY 2002 request is $598,700 below the FY 2001 enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.

       (-$281,476, -3.0 FTE) This is a reduction of FTE from the Special Review program and
       regional field programs to meet the new Agency workforce levels. Some Special Review
       program workload is  shifting to the Tolerance Reassessment program.  Field  programs,
       including Certification and Training, Worker Protection  and the Strategic Agricultural
       program will scale back outreach and increase reliance  on state partners for program
       implementation.

       (-$948,800) The Tolerance Reassessment and Tolerance Petition programs will be partially
       funded through fees, once fees are collected. Resources are shifted to fund the Reregistration
       program staff
Annual Performance Goals and Performance Measures

Agriculture Partnership

In 2002     Implementation of 10-15 model agricultural partnership projects that demonstrate and
           facilitate the adoption of farm management decisions and practices that provide growers with
           a "reasonable transition" away from the highest risk pesticides.

In 2001     Implementation of 10-15  model agricultural partnership projects that demonstrate and
           facilitate the adoption of farm management decisions and practices that provide growers with
           a "reasonable transition" away from the highest risk pesticides.

In 2000     Agricultural partnerships were initiated in four pilot regions:  4,6,9, and 10. OPPTS' goal
           was exceeded due to RIO's initiating several mini grants for start up projects.

Performance Measures:                    FY 1999   FY2000    FY2001   FY2002
                                       Actuals     Actuals     Estimate   Request

Model agricultural partnership pilot projects               15         10-15 Addit. 10-15 Addit.  pilots

Baseline:   Baseline is the number of projects identified in 1999.

Reduce Risk to Endangered Species

In 2002     None of the top 15 species on the Office of Pesticide Programs/Fish and Wildlife Service/
           U.S. Department of Agriculture (OPP/FWS/USDA) priority list of threatened or endangered
           species will be jeopardized by exposure to pesticides.
                                            IV-20

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Performance Measures:                     FY 1999   FY2000    FY2001     FY2002
                                        Actuals    Actuals     Estimate     Request

Species on priority list jeopardized                                              0            species

Baseline:    Top 15 species on OPP/FWS/USDA list for the year.
Reduce Wildlife Incidents and Mortalities

In 2002     Reduce by 10 percent from 1995 levels the number of incidents and amount of mortalities
           to terrestrial and aquatic wildlife caused by the 15 pesticides currently responsible for the
           greatest mortal ity to such wildlife.

Performance Measures:                     FY 1999    FY20QO    FY2001     FY2002
                                        Actuals     Actuals     Estimate     Request

Incidents and mortalities to wildlife                                             10%        reduction

Baseline:    Baseline under development in FY 2001 and should be available for reporting in FY 2002.

Pesticides in Groundwater

In 2002     Pesticides with high leaching and persistence potential will be managed through significant
           actions to protect groundwater resources from contamination.

Performance Measures:                     FY 1999    FY2000    FY2001     FY2002
                                        Actuals     Actuals     Estimate     Request

Pesticides with high leaching and
persistence potential managed to
protect groundwater                                                         22          pest.  (Cum)

Baseline:    Thirty-one pesticides have been identified as of March 2000. Baseline may increase if
           additional pesticides meeting the criteria are identified.
Verification and Validation of Performance Measures

Performance Measure: Training of Applicators

Performance Database:  Aggregation of training figures from state cooperative extension services
(SCES) and voluntary worker protection training verification

Data Source:   State cooperative extension services and Worker Protection program.  SCES
represents the education and training arm of state Agriculture Departments which extend programs
to counties.
                                             IV-21

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QA/QC Procedures:  Training records (maintained at state or county level)

Data Quality Review: N/A

Data Limitations: Dependent on accurate record keeping at state or county level

New/Improved Data or Systems: None


Coordination with Other Agencies

       EPA coordinates with various state, tribal, and federal agencies as well as with private
organizations to ensure that our strategic approaches to pollution prevention and risk reduction are
comprehensive and compatible with efforts already in place. Achievement of this objective depends
hi part on successful  cooperation with our partners and the successful implementation of our
regulatory programs.  The number of partnerships with private and public entities serves as an
effective indicator of EPA's progress in meeting its stated objectives.

       Coordination with state lead agencies and with the U. S. Department of Agriculture (USDA)
provides added impetus to the implementation of the Certification and Training program. States also
provide essential activities in developing and implementing the Endangered Species, Groundwater,
and Worker Protection  programs.   States are involved  in  numerous special projects  and
investigations, including emergency response efforts. The Regions provide technical guidance and
assistance to the states and tribes in the implementation of all pesticide program activities.

       EPA uses a range of outreach and coordination approaches for pesticide users, for agencies
implementing various pesticide programs  and projects, and for the general public.  Outreach and
coordination are essential to protect workers, endangered species, and groundwater; to provide
training of pesticide applicators; to promote integrated  pest management  and  environmental
stewardship; and to support compliance through EPA's regional programs and those of the states and
tribes.

       In addition to the training that EPA provides to farm workers and restricted use pesticide
applicators, EPA works with  the state Cooperative Extension Services designing and providing
specialized training  for various groups (e.g., training to private applicators on the proper use of
personal protective equipment and application equipment calibration, how to handle spill and injury
situations, farm family safety, how to prevent drift, and pesticide and container disposal). Other
specialized training is provided to public works employees on grounds maintenance, to pesticide
control operators on proper insect identification, and on weed control for agribusiness.


Statutory Authorities

Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)

                                         IV-22

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Federal Food, Drug and Cosmetic Act (FFDCA)




Food Quality Protection Act (FQPA) of 1996




Clean Water Act
                                     IV-23

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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and Ecosystems


Objective #2: Reduce Risks from Lead and Other Toxic Chemicals

       By 2007, significantly reduce the incidence of childhood lead poisoning and reduce risks
associated with polyehlorinated biphenyls (PCBs), mercury, dioxin, and other toxic chemicals of
national concern.
                                    Resource Summary
                                   (Dollars in thousands)
                                         FY1999
                                         Enacted
            FY2000
             Actual
      FY 2001
      Enacted
        FY2002
        Request
Reduce Risks from Lead and Other Toxic       $34,262.3      $37,839.9     $34,304,2     $34,741.7
Chemicals

    Environmental Program & Management       $20,550.1      $20,113.5     $20,622.2     $21,059.7
    State and Tribal Assistance Grants

        Total Workyears
$13,712.2      $17,726.4     $13,682.0     $13,682.0

   140.7          86.6         145.6         143.1
                                      Key Programs
                                   (Dollars in thousands)
                                            FY 1999
                                            Enacted
              FY2000
              Enacted
       FY2001
       Enacted
        FY 2002
        Request
 Grants to States for Lead Risk Reduction

 National Program chemicals: PCBs, Asbestos,
 Fibers,and Dioxin

 Administrative Services

 Regional Management
    $13,712.2     $13,712.2     $12,472.4    $13,682.0

    $3,268.3      $5,753.6      $6,115.1     $6,388.9
        $0.0
        $0.0
 $0.0
$29.2
$107.9
 $23.3
$120.8
 $27.1
                                           1V-24

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FY 2002 Request

Lead Risk Reduction Program

       EPA is working closely with other Federal Agencies to eliminate childhood lead poisoning.
During 2002, the states, tribes and EPA will continue to implement the Lead Based Paint Training
& Certification Program in all fifty-five states  and territories and in tribal lands.  In the lead
regulatory program, EPA will propose
one major rule setting standards for :	„	:	_
training   and   certification   for
renovation and remodeling activities.
EPA's FY 2002  lead  activities  will ;
make  significant contributions to ;
virtually eliminating lead poisoning for |
our Nation's children.               :
                                            American Homes with Lead
                                         40% of American Homes Contain Lead-14% of those homes have children under Age 6
                                                 Leaded Homes w/Children , workplace).  Soil contaminated with lead from
deterioration of exterior lead-based paint, industrial emissions, and/or deposition of lead from past
uses of leaded gasoline may be ingested directly or contribute to indoor levels of lead-contaminated
dust when tracked into the home. Children may also be exposed to lead through ingesting lead-based
paint chips from flaking walls, windows, and doors or from chewing on surfaces covered with lead-
based paint. Other sources of lead exposure include, but are not limited to, lead-contaminated food
and drinking water and parental occupational exposure to dust and  airborne lead particles.

       Considerable progress has been made in reducing environmental lead levels. In 1973, the
Federal government began taking steps to eliminate sources of lead. Efforts include EPA phasing
out leaded gasoline and the Consumer Product Safety Commission (CPSC) banning the production
and sale of lead-based paint for residential use in 1978. In addition, EPA has implemented more
                                         IV-25

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stringent standards for lead in drinking water, and the domestic canning industry voluntarily
eliminated the use of lead in solder to seal food cans. As a result of these past and ongoing efforts,
children's blood levels have declined over 80 percent since the mid-1970s.

      The National Health and Nutrition Examination Survey (NHANES) conducted by the
National Center for Health Statistics indicates that over the past two decades the average blood-lead
level in children has decreased from 12.8 micrograms/deciliters (ug/dl) to 2.8 ug/dl. According to
NHANES III Phase 2, completed in 1994, approximately 900,000 children under six years of age
in the U.S. had blood-lead levels equal to or exceeding 10 ug/dl.

      Although lead exposure can affect children across all socioeconomic strata and in all regions
of the country, children in poor inner-city communities, however, are disproportionately affected
because lead-based paint hazards are more prevalent in deteriorated older housing and the overall
ambient level of environmental lead  tends to be higher in inner cities. Nationally, children in
Medicaid comprise 80 percent of children with blood lead levels  15 ug/dl and above. Studies by the
Centers for Disease Control (1988-1991) indicate that children living in central cities are three to
four times more likely to have blood-lead levels equal to or exceeding 10 ug/dl than those outside
central cities, with the highest prevalence in cities where populations exceed one million.

      According to HUD's  National Survey of Lead and Allergens in Housing, an estimated 38
million homes (40% of all homes) contain some lead-based paint. The likelihood, extent, and
concentration of lead-based paint vary with the age of the building. Eighty-seven percent of housing
units constructed before 1940, 69 percent of units constructed between 1940 and 1959, and 24
percent of units constructed between 1960 and 1977 contain some lead-based paint. Over 5 million
(or 14 percent) of these homes with some lead-based paint have children under age 6 in residence.
Subchapter IV of TSCA focuses upon children younger than 6 years.

      EPA, under the 1992 Residential Lead-Based Paint Hazard Reduction Act (Subchapter IV
of TSCA), assists and guides federal activities aimed at reducing the exposure of children in homes
with lead-based paint.  Other Federal agencies, such as HUD and Health and Human Services
(HHS), via the National Institute for Occupational Safety and Health and the  CDC, also play
important roles. In the past six years, EPA has made great strides in protecting children from lead
poisoning through a combination of rulemaking, education, research, and partnerships,  EPA has
promulgated  regulations to  set up a federal  infrastructure, including the lead  accreditation,
certification and workplace standards rule for targeted housing, the lead real estate notification and
disclosure rule (with HUD), the lead renovation information rule, and standards identifying lead
hazards in paint, dust and soil.  The public education programs and tools developed include a
national clearinghouse to provide the public with information on lead; and grants to states and tribes
to establish accreditation; certification and workplace standards programs  for targeted housing.

Grants to States for Lead Risk Reduction
                                         IV-26

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       By 2002, EPA will have approved those states, territories and Tribes that intend to run
programs for lead accreditation certification, and workplace standards in targeted housing.  All
states, territories and Tribes, however, will not adopt the program, and we anticipate that EPA will
be required to run a Federal lead program in 15 to 20 states and in most of the tribal lands and U.S.
territories.
       With implementation of the training,
territories or tribes, or in some cases by EPA,
additional data will become available to help
measure progress in reducing childhood lead
poisoning and elevated blood-lead levels. In
the future,  EPA will be  able to measure
progress  in  reducing   lead-based  paint
exposures  through  the  collection of data
associated with the Lead Abatement Program.
In addition, the Agency will know how many
professionals  become  certified  as  risk
assessors, inspectors, workers or supervisors.
This data will be used to  measure the growth
of  a  well-trained  workforce  capable  of
performing  abatements safely and reliably.

National Program Chemicals Program

       Most chemicals were introduced  into
commerce before the risks were known.  A
number of these chemicals are both prevalent
and high-risk. The Agency has established a
national program to manage reductions in use,
safe removal, disposal or containment of these
chemicals, as appropriate.   Significant risks
are well established for PCBs, asbestos, and
dioxin, for example, and reductions  in use and
releases have been important  to  reducing
exposure of the general population  and
sensitive subpopulations.    Risk  reduction
efforts on these chemicals will continue to
meet the mandates under TSCA and fulfill the
commitments  made  in   domestic  and
international agreements.

       In 2002, EPA's PCB control  efforts
will continue encouraging phase out of PCB
certification and accreditation program by states,
           Dioxin Exposure Initiative

   The EPA Dioxin Exposure Initiative (DEI), begun in
   1994, is a cross-media effort to develop the scientific
   tools and understanding needed to quantitatively link
   dioxin sources to exposure of the general population.
   DEI scientists are working back through exposure
   pathways to identify the points of origin of current
   dioxin exposure and the relative contribution different
   sources make to dioxin risks, This information will
   allow EPA, the states and other federal agencies to
   focus their risk management attention on those sources
   and pathways of greatest public health significance.

   Results from the DEI have already resulted in
   significant advances in our understanding of dietary
   routes of exposure. In addition, DEI results to date
   have established baseline measurements of dioxins in
   food and air that will permit the tracking of
   environmental trends and evaluation of the
   effectiveness of dioxin risk management programs.

   In FY 2002, activities will focus on operation of the
   National Dioxin Air Monitoring Network (NDAMN),
   continuation of field and chamber studies to
   characterize dioxin from uncontrolled combustion
   sources, air transport modeling of 2000 emission
   inventory, and cooperative efforts with FDA and
   USDA to identify and quantify dioxin pathways in
   animal feeds.

   Program outputs will include issuing a final 2000
   dioxin inventory, results of the 2001 NDAMNS cycle,
   and results from the urban air transect study.
   Continuation and strengthening of the DEI is a central
   theme in EPA dioxin strategy development. USDA
   and FDA have been active partners in the planning and
   implementation of many DEI projects.
                                            IV-27

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electrical equipment, ensuring proper storage or waste disposal methods and capacity, and fostering
PCB site cleanups.  Recent rulemakings have provided industry with the opportunity to propose
alternative risk-based PCB cleanups. Also, the Agency will continue to review existing approvals
for facilities that treat, store and/or dispose of PCBs, on a five to ten year renewal cycle. The Agency
will also pursue opportunities for risk reduction for mercury, and for certain industrial fibers that
may pose risks in the workplace.  Outreach and technical assistance will continue in the asbestos
program for schools, in coordination with the Occupational Safety and Health Administration and
the states.  A new project to determine the  risks to homeowners and remodelers from asbestos-
contaminated vermiculate home insulation is underway.

       EPA plans to develop an Agencywide dioxin strategy to respond to  new findings in the
scientific community concerning the potential risks of dioxin and address dioxin risk management
in a more comprehensive cross-media approach. EPA will better examine reducing dioxin exposure,
focusing on identifying and better quantifying the link between dioxin sources  and the general
population exposure.
FY 2002 Change from FY 2001 Enacted

EPM

•      (-$104,700,-! FTE) The reduction of one FTE in lead regulatory development and lead
       outreach is to meet the Agency's new workforce level. The program will reduce outreach
       activities for building and superstructure ralemaking required by statute.

       (-$130,700) The FY 2002 request is $130,700 below the FY 2001 Enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are not
       included in the FY 2002 President's Request.

*      (+$594,500) This increase reflects an increase in workforce costs.


Annual Performance Goals and Performance Measures

Lead-Based Paint Abatement Certif. and Training

In 2002    Implement certification and training of lead abatement professionals

In 2000    Additional legal requirements for lead-based paint abatement certification and training for
          the tribes has delayed development of two tribal programs.

In 1999    EPA continued building the lead-based paint abatement certification and accreditation
          program by approving 30 state and territory and two tribal programs. In 17 states that do not
          take on the program, EPA will run certification and accreditation.
                                          IV-28

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Performance Measures:
                                            FY 1999
                                            Actuals
FY 2000
Actual$
FY2001
Estimate
FY 2002
Request
                                                                                             federal



                                                                                      tribal programs (cum)

                                                                                 6000        certified
Develop state programs for the training,
accreditation and certification of lead-based
paint abatement professionals.                 28          36                                  states

A Federal training, accreditation and
certification program will be established
and administered in states which choose
not to seek approval from EPA to administer.   22          19

Develop tribal programs for training,
accreditation and certification of lead-based
paint abatement professionals.                              2

Number of certified individuals and firms

Baseline:    Baseline will be established in 2001.

Training, Accreditation and Certification for Lead Paint

In 2002     Prepare rules on training, accreditation and certification requirements for renovation and
            remodeling activities and training, accreditation and certification requirements for lead-based
            paint activities in buildings and superstructures.

In 2001     Prepare rule  on training, accreditation and  certification requirements for renovation and
            remodeling activities

In 2000     The lead rules for lead paint abatement/renovation and remodeling and building/superstructures
            were not met due to the lengthy SBREFA process and FTE cuts.

In 1999     Development continued training, accreditation and  certification rules:  1) renovation and
            remodeling activities and 2) deleading on bridges and structures.  When these rules  are
            promulgated, a full set of national standards for safe, effective reduction of lead-based paint
            hazards will be in place.
Performance Measures:
Lead Renovation Information Rule

Develop proposed rules for lead paint
abatement/ renovation and remodeling and
building./superstructure rale

Renovation and remodeling rule

Building and Superstructure
Rule
                                             FY 1999
                                             Actuals

                                             Final
FY 2000
Actuals
FY 2001
Estimate
                                             2 proposed  delayed
                                                                     1 proposed
FY 2002
Request

            rule



            rules

            rule


1 proposed  rule
Baseline:    Rule development  initiated in  1998;  no consistent standard for abating  lead paint for
            renovation or buildings/superstructures existed prior to Title X.
                                                   IV-29

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Testing of Chemicals in Commerce for Endocrine Disruption

In 2002     Standardization and validation of screening assays.

            Complete standardization and validation of mammalian screens and tests.
In 2001

In 2000
            In addition to the 2 planned endocrine disrupter screening assays, EPA started the 2-generation
            mammalian assays.
In 1999      The Agency completed a number of key activities in FY 1999 including the High-Throughput
            Pre-Screening (HTPS) feasibility demonstration study, initiated the development of a Priority
            Setting Database, and started work on standardization of several screens and tests for use in the
            EDSP.
Performance Measures:
                                           FY1999
                                           Actuals
Develop program to screen 5,000
chemicals for endocrine disruption potential     Developed

Screening Assays Completed
FY2000    FY2001     FY2002
Actuals     Estimate     Request
                                                                              11
                                   program

                                   screening assay
Baseline:    In FY 2000, the Agency began developing validation and screening protocols, with the goal of
            completing a total of 8 Tier 1 screens and 5 Tier 2 tests by FY 2006.

Safe PCB Disposal

In 2002     Reduce the industrial burden and costs of managing the safe disposal of PCBs

In 2001      Reduce the industrial burden and costs of managing the safe disposal of PCBs

            The data on FY 2000 PCB disposals will be available by March 30,2001.
In 2000

In 1999
            Technical Corrections to the 1998 PCB Disposal Amendments was issued on 6/24/99.  The
            PCB Transformer Reclassification Rule will be promulgated in FY 2000. EPA published a
            notice in the FR in October 1999 soliciting additional information to support the Non-Liquid
            PCB Use Authorization Rule.
Performance Measures:


Revisions to PCB Disposal Amendments,
Non-liquid PCB use authorization,
Transboundary movement of PCBs

Safe Disposal of Transformers

Safe Disposal of Capacitors

Safe Disposal of Bulk Waste

Develop Final Transformer
Reclassification Rule
                                           FY 1999
                                           Actuals
FY 2000    FY 2001     FY 2002
Actuals     Estimate     Request
                                                                                          proposed

                                                       Avail. 3/01  20,000      20,000      transformers

                                                       Avail. 3/01  35,000      35,000      capacitors

                                                       Avail. 3/01  660,000,000 660,000,000 Kg Bulk Waste
                                                       Delayed    Final
                                   rule
                                                 IV-30

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Baseline:   Capacitors:  1.85 million units; Transformers 2.20 million units


Verification and Validation of Performance Measures

Performance Measure: Number of certified individuals and firms

Performance Database: Lead-Based Paint Information Management System (LBPIMS) (interim)

Data Source: LBPIMS will include information about applicants for certification and their test scores,
which will be provided by third-party test centers.  The test centers will provide test scores
electronically to EPA Headquarters and the Regions promptly after completion of the tests.

QA/QC Procedures: Applicants are given photo identifications to ensure thatthey are the ones taking
the test. EPA Headquarters will review applications for completeness, including checking for the
required information  and materials. Regions will review applications for quality, including a more
substantive review of the application. Third-party test centers have extensive QA/QC controls under
the contract.

Data Quality Review: Data quality reviews are conducted through compliance monitoring of testing
facilities by regular Office of Enforcement and Compliance Assurance procedures.

Data Limitations: None known.

New/Improved Data or Systems: Final LBPIMS is under development and is currently expected to
be completed in 2003,

Coordination with Other Agencies

       The success of EPA's lead program depends in large part on coordination with other Federal
agencies, states and Indian tribes.  In 2001, EPA plans to promulgate a new rule (the lead hazard
standards rule)  and propose a rule  (training and certification  requirements for renovation and
remodeling activities) which will require close coordination with HHS, HUD and the Occupational
Safety and Health Administration (OSHA).  EPA will also work closely with state and Federally
recognized Indian tribes to ensure that 1) authorized state and tribal programs continue to comply with
requirements established under TSCA; and 2) the ongoing Federal accreditation certification and
training program for lead abatement contractors continues to be administered  effectively.

       Mitigation of existing risk is a common interest for other federal agencies addressing issues
of asbestos and PCBs.  EPA will continue to coordinate interagency strategies for assessing and
managing potential risks from asbestos and other fibers. Coordination on the safe PCB disposal is an
area of ongoing emphasis with the Department of Defense, and particularly the Navy, which has
special concerns regarding ship scrapping. PCBs and mercury  storage and  safe disposal are also
important issues requiring coordination with the Department of Energy as they develop alternatives
and explore better technologies for handling high-risk chemicals.
                                          IV-31

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Statutory Authorities

Toxic Substances Control Act .(TSCA) section 4,5,6,8,12(b) and 13 (15 U.S.C. 2603-5,2607,2611
and 2612)

Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) sections 3,4,5,6,11,18,24, and 25 (7  °
U.S.C. 136a, 136a-l, 136c, 136d, 1361,136p, 136v, and 136w)

Asbestos Hazard Emergency Response Act (AHERA)

Asbestos School Hazard Abatement Act (ASHAA)
                                        IV-32

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                             Environmental Protection Agency

             FY 2002 Annual Performance Plan and Congressional Justification

     Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
                                        Ecosystems

Objective #3: Manage New Chemical Introduction and Screen Existing Chemicals for Risk

       By  2007, prevent or restrict introduction into commerce of chemicals that pose risks to
workers, consumers, or the environment and continue screening and evaluating chemicals already in
commerce for potential risk.
                                    Resource Summary
                                    (Dollars in thousands)
                                         FY 1999
                                         Enacted
            FY2000
             Actual
FY2001
Enacted
FY2002
Request
Manage New Chemical Introduction and        541,223.4      $55,286.8     $64,915,8     565,233.1
Screen Existing Chemicals for Risk                                              '

    Environmental Program & Management       $29,864.3      $38,244.8     $44,192.6     $44,681.1
    Science & Technology

       Total Workyears
$11,359.1       $17,042.0      $20,723.2      $20,552.0

   328.2          382.9         375.0         372.5
                                       Key Programs
                                    (Dollars in thousands)
                                            FY1999      FY 2.090     FY2091     FY2002
                                            Enacted      Enacted     Enacted     Request
Endocrine Disrupter Screening Program                $ 1,3 08.5

New Chemical Review                            $14,659.5

Existing Chemical Data, Screening, Testing and         $14,2253
Management

Environmental Monitoring and Assessment Program,        $0.0
EMAP
                 $5,444.5      $3,611.9      $2,912.6

                $11,818.4     $12,543.1     $13,014.7

                $20,394.5     $24,429.6     $25,423.4
                    $0.0
     $143.0
    $148.0
                                           IV-33

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                                          FY 1999
                                          Enacted
         FY2000
         Enacted
FY2001
Enacted
FY2002
Request
Rent, Utilities and Security

Administrative Services
   $0.0     $3,858.3     $1,270.3     $1,447.2

   $0.0       $903.2     $1,262.2       $908.2
FY 2002 Request

       This objective includes work in four broad program areas: governing the introduction of new
chemicals into commerce (chemicals in the process of commercialization), assessing the risks of
existing chemicals (chemicals in commerce), screening and testing chemicals for endocrine disruptor
effects, and assessing the safety of biotechnology products and genetically modified organisms. These
programs are pivotal to reducing current and future risk by preventing or controlling the production
of new chemicals that pose unreasonable risks and assessing and addressing the risks of chemicals
already in commerce.

       One of the major program priorities in FY 2002 is the Chemical Right-to-Know (CRTK)
Program, which focuses on the lack of critical toxicological and environmental effects information on
industrial chemicals. Currently there is little information available on the potential hazards of most
chemicals used in every day products and industrial processes. CRTK's High Production Volume
(HPV) Program targets the 2,800 chemicals
produced in the highest volumes (1 million
pounds or greater) in the U.S. Working in
partnership with industry, the Agency will
ensure that basic screening-level testing on
these chemicals is made publicly available
by 2005. CRTK will help prioritize EPA's
chemical risk assessment and management
activities  and  increase  the  amount of
information on chemical exposures, hazards
and risks that EPA can provide to the public.
Using this information, states, communities,
industry, and the public will be empowered
to act on their own and in concert with EPA
to address risks posed by these chemicals.
Current Hazard Data Availability
     for U.S. HPV Chemicals
          Full Data Set
             7%
New Chemicals Program

       The  Toxic Substances Control Act  (TSCA) requires EPA  to  review a chemical  or
microorganism before it is manufactured commercially (i.e., a "new" chemical) to determine whether
it can be handled and used safely. If the Agency determines that an unreasonable risk may be posed
to people or the environment, EPA can block the chemical's entry into commerce or establish control
                                         IV-34

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measures to ensure the chemical's safety in the marketplace. Since 1979, EPA has reviewed more than
33,000 pre-manufacturing notifications (PMNs) and taken actions to control risks for about 10% of
these chemicals and microorganisms.

       In 2002, EPA expects to receive and assess within the TSCA mandated 90-day review period
approximately 1,800 additional PMNs. As part of its review of new chemical substances, the Agency
has developed an array of innovative, efficient screening mechanisms.  As part of a new chemical
review for commercial chemicals in the process of commercialization, the Agency routinely works
with industry to share any options and suggestions it may have on process improvements, or to produce
new chemicals more safely.
The  adjacent chart  indicates 7
substantial progress made in the
New Chemicals Program since its
inception in 1978, In FY 2000,
there  were  potentially  78,598
chemicals in commerce; 15,992 of
these chemicals, or 20.3%, had ;
gone  through   the  TSCA
Premanufacture Notice process
and  entered  into  commerce
following submittal of a Notice of !
Commencement   of
Manufacturing. These chemicals
have been assessed for risks, and
controls  are  in   place  as
necessary. A large proportion of
these  chemicals  also may be
"green" alternatives to existing
chemicals in commerce.
EPA Risk Screening Reviews of Chemicals in Commerce
        FY1978
FY2000
                              20.3%
           100.0%
                                               79.7%
No Risk Screening Reviews   • Risk Screening Reviews Conducted
       The New Chemicals Program also examines new microorganisms derived from biotechnology
to ensure that potential risks have been evaluated and that adequate controls are in place before they
are released into the environment.   Recent regulatory changes have increased the  rate of new
biotechnology chemicals submitted for review.  Other outreach and technical assistance to encourage
safer chemicals and chemical production and  use include green chemistry and green engineering
textbooks and other publications, a reference compendium, laboratory manuals, symposia and actual
course work materials, all developed in partnership with industry, professional organizations and
universities.

     '  In 2002, the Agency plans to launch "Sustainable Futures,"a program which offers an expedited
Pre-Manufacturing Notification process to companies who take training in the use of the methods and
apply the results toward development of safer  chemicals. The Agency, working with others in the
scientific community, has developed computerized methodologies  that look at the  structure of
chemicals and estimate potential hazard and risk.  The methods, called the  Pollution Prevention
Framework and the PBT Profiler, can be used  to identify hazardous chemicals even before product
manufacture begins. EPA is encouraging industry to use these screening-level tools, used internally
by EPA, to evaluate chemical alternatives early in the research and development stage.
                                          IV-35

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       In 2001, EPA's technology transfer efforts introduced these risk-screening methods to the
industry, and the response was both positive and dramatic. The participating companies have indicated
mat the methods identified safer alternatives early in the product development cycle, when pollution
prevention, product substitution, and risk reduction are most cost effective. The companies also found
that the models reduced production costs, shortened time to market, and reduced generation of waste.
In 2001, under a pilot program (Project XL) EPA provided regulatory relief to two companies who
used the tools as an integral part of product development. In a win-win result, industry saved time and
money and the environment saw inherently safer chemicals. In FY 2002, EPA intends to expand the
use of the risk screening  tools developed from Project XL to other companies to assist them in
selecting safer chemicals for use in their products and processes.

Assessing Existing Chemicals: The Chemical Right-to-Know Program

       One of EPA's critical responsibilities under TSCA is to identify and control any unreasonable
risks that might be associated with the thousands of chemicals which are already in commerce.  In
2002, the Agency will complete assessments of Methyl Tertiary Butyl Ether (MBTE), a gasoline
additive, and several other chemicals used in a wide variety of commercial products and industrial
processes. EPA's strategy for addressing the remaining chemicals in commerce is to foster the public
availability of risk screening information to allow states, communities, industry, and the public to act
on their own and in concert with EPA to reduce risks posed by these chemicals.
       EPA's CRTK Program focuses on
the  lack  of critical  lexicological and
environmental  effects  information  on
industrial  chemicals.  In FY 2002, EPA
will continue to develop risk screening data
on  High  Production  Volume  (HPV)
chemicals under  this program.    HPV
chemicals are those that are manufactured
or imported in quantities of at least one
million pounds.
      HPV Challenge Program
   2800 HPV Chemicals Need Test Data
              (data as of 11/30/99)
 469 Companies Or Consortia •,
 Voluntarily Committed    ;
: To Sponsor HPV Chemicals ;
                          ; Commitments
                          : From Industry
                          .: To Test 2155
                          I HPV Chemicals
       EPA will also focus on chemicals
of special  concern to children.   Little
hazard information exists in the public
domain for many of these chemicals that
we use daily. Only seven percent of the 2,800 HPV chemicals have a full set of basic information on
health and environmental effects. Only 25 percent of consumer chemicals (those used by children and
families in consumer products) have a full set of basic information.  In addition, the Agency will
continue  working with other countries  in  the  Organization  for  Economic  Cooperation and
Development's (OECD's) Existing Chemicals Program to further expand the availability of risk
screening information.

       Without this information, we may not be able to effectively identify and evaluate the human
health and environmental risks posed by these chemicals (although the HPV screening program does
not include actual risk assessments on these chemicals). In addition, relatively little is known about
                                          IV-3.6

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the unique effect on children's health of chemicals that are widely used in children's products or
otherwise have high potential for exposure to children.

       Basic screening-quality information for all 2,800 HPV chemicals will be made available to the
public by 2005 through a voluntary industry challenge and a series of test rules for those data not
obtained through the voluntary program. The resulting hazard data will be broadly disseminated to
the public in a format that will be easily understood. The response from industry to this initiative has
been enthusiastic: 469 companies have sponsored 2,155 chemicals and 187 chemical categories. The
Agency intends to further evaluate whether additional testing is warranted for chemicals to which
children are exposed, under a parallel Voluntary Children's Chemical Evaluation Program that will
be launched in 2002.

       Much of the focus of the Agency in FY 2002 will be on small groups (or categories) of HPV
chemicals proposed by industry. Such categories of chemicals can be considered together because of
their similar structure or toxicological properties. The Agency will be actively engaged in assessing
the validity of such categories of chemicals, and allowing the public to access the hazard data on these
chemicals as the data are obtained from industry.

       In 2002, the Agency will continue to work with stakeholders to explore  possibilities for
identifying use information. Use information would allow the Agency to identify chemical exposure
pathways, better assess risks associated with such exposures, and identify potential unsafe uses of
household chemicals and other consumer products.

Endocrine Disrupter Program

       The Food Quality Protection Act (FQPA) requires EPA to screen pesticides for estrogenic
effects on human health, and the Safe Drinking Water Act authorizes EPA to screen chemicals found
in drinking water sources.  FQPA requires that "appropriate validated test systems" be used in the
screening program. An Advisory Committee established in 1996 recommended that EPA expand the
scope of the screening  program to include specific other types of endocrine effects in addition to
estrogenic effects, and to include industrial chemicals, drinking water contaminants, and important
mixtures in addition to  pesticides.  Endocrine disruption is of concern for many reasons, including
potential for interference with growth and development, induction of certain types of cancer, and
adverse effects on reproduction.

       EPA proposed its Endocrine Disruptor Screening Program in the Federal Register on December
28, 1998. Since then, EPA has focused on two major activities in implementing the screening
program: the development and validation of test systems for use in the screening program, and the
development of a priority-setting system to assist in choosing which chemicals should be tested first.
Work on the priority-setting system will be completed in early 2002.  Work on the development and
validation of assays will accelerate in 2002 due to the recent award of a master support contract for
laboratory support.  EPA recently  signed a consent agreement for target dates  for completion of
individual test systems. Certain test systems must be validated by the end of 2003; others must be
validated by the end of 2005.  Since some of these tests are barely out of the research stage, significant
work is required in order to standardize them for use as routine assays, and to show the reliability of
the tests across a wide range of chemicals and across different laboratories.
                                          IV-37

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International Activities in Biotechnology

       The Agency plays a key role in international biotechnology programs concerned with food
safety sponsored by the Organization for Economic Cooperation and Development (OECD), the
United Nations (UN), and the European Union (EU). Biotechnology products include new chemicals
and chemical preparations which may be used in food and feed, as well as genetically modified foods.
The Agency is an active participant in two biotechnology workgroups under the Environment Policy
Committee within the OECD: 1) The Working Group on the Harmonization of Regulatory Oversight
in Biotechnology and 2) the Task Force for the Safety of Novel Foods and Feeds. The Working Group
focuses on environmental safety assessment of biotechnology products while the Task Force assesses
the safety of foods and feeds derived through biotechnology. The major areas of work by the two
workgroups are development of consensus documents and outreach activities.  The consensus
documents  contain technical  information  which  is intended to aid the safety assessment  of
biotechnology products for regulatory approval. In FY 2002, the U.S. will host an International
Conference on the Environmental  Impacts of Genetically Modified Organisms (GMOs).  The
conference  is intended to address  the environmental impacts of  GMOs, looking at the facts,
uncertainties and safety assessments. The Working Group will coordinate substantive preparations
for the conference  with relevant groups within the OECD,  other international organizations, and
developing countries.

       Research

       There are over 80,000  existing chemicals on the  Toxic Substances Control Act (TSCA)
inventory and each year an additional 2,000 chemicals are added. Each year, 1 billion pounds of active
ingredients found in over 2000 conventional pesticides are applied in the United States. Release of
these chemicals into the environment through agricultural and nonagricultural application and other
means poses serious risks to both human health and ecosystems (e.g., plant and wildlife).
In F Y 2002, the Agency will continue to support both human health and ecosystems research to reduce
risks and improve the environment safety of our communities, homes, work places and ecosystems
associated with releases of pesticides and other toxic chemicals. This research will include the
development and improvement of methods to evaluate hazards on human health endpoints, models to
improve the biological basis for human health risk assessment, and methods to identify ecological
hazards, predict ecological risk, and characterize environmental stressor interactions.

       Human Health Research

       Humans are exposed every day to thousands of chemicals in single or multiple combinations,
through the air, drinking water, food, and dust. The objectives of the human health research program
under the Safe Communities goal are to: develop and verify methods to  detect, characterize and
quantify  adverse human health effects that result from  exposure  to pesticides and other toxic
substances; develop and validate models to predict the human health effects of exposure to pesticides
and other toxic substances; and provide data on the health effects of selected pesticides and other toxic
chemicals, alone or in combination.

       Health effects research in FY 2002 will continue to focus on development of mechanistically-
based predictive models for human health  risk assessment, such as structure-activity-relationship
models to help determine testing needs under Section 5 of TSCA, which addresses the introduction

                                          IV-38

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of new chemicals into commerce.  Research will also be conducted to address the needs for methods
to evaluate the special sensitivities of certain subpopulations based on age, genetic factors and health
status. These methods will be used to evaluate endpoints of toxicity that are qualitatively different
from those of concern for the general population.

       In FY 2002, EPA will continue to participate in the Agriculture Health Study (AHS) with the
National Cancer Institute (NCI), the National Institute for Environmental Health Sciences (NIEHS),
and the National Institute of Occupational Safety and Health (NIOSH )studying the health of men and
women in agriculture. EPA's role is to collect high quality data and evaluate how accurately the study
questionnaire classifies  pesticide application activities  and enables the prediction of applicator
exposure and dose. Data collection for the study is scheduled to be completed in FY 2002;  sample
analysis will be completed and data analysis initiated in FY 2003; and reporting will be completed by
FY2004.
       The  results of the  application of methods developed under this  research program will
significantly increase understanding of the impacts of specific classes of pesticides and toxic
substances on human health.

       Ecological Research

       Over the long term, ecosystems degradation poses one of the most serious risks to human
health and economic sustainability. Our Nation's ecosystems provide valuable renewable resources
such as food, fiber, water storage, and wood. Stresses to the environment can impact these resources
as well as critical self-purifying environmental processes.   Ecosystems protection research remains
a high priority area due to  the need for better understanding of environmental stressors and their
impacts on the health and sustainability of ecosystems. The mechanisms and consequences of changes
in the biological, chemical and physical attributes of ecosystems due to stressors are poorly understood
and represent significant challenges to the research community.

       In FY 2002, ecosystems effects research will focus on improving our understanding of
ecosystem stressors and will focus on: 1) develop methods to evaluate the ecological effects of
cumulative exposure to pesticides and other anthropogenic stressors; 2) develop and validate predictive
models (e.g., biologically-based dose-response, structure-activity-relationship)  to identify  and
characterize ecological hazard and risk; 3) develop hazard identification techniques for numerous
ecological health end points for various wildlife species; and 4) evaluate data on the direct stressor
effects of toxic chemicals, including pesticides, on ecosystems, and on interactions of such exposures
with other anthropogenic and/or natural stressors.

       Risk assessment research will continue to develop the tools, methodology, and data to conduct
probabilistic assessments of ecological risk from exposure to pesticides, including the development
of user friendly models that link distributions of exposure and toxicity to estimate the magnitude and
probability of effects.  Also included is model validation and sensitivity analyses to identify areas of
research most likely to reduce uncertainty in model predictions. Finally, the Agency will apply larger-
scale risk assessment tools to pesticides and toxic substances issues, and refine existing aquatic
exposure assessment models used to assess the impacts of pesticides and toxics on broader scales of
ecological organization.

                                           IV-39

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       The Agency will incorporate the human health and ecological test methods and models
developed under this goal into test guidelines under which manufacturers will be required to submit
data to the Agency on pesticides in accordance with the Fungicide, Insecticide, and Rodenticide Act
(FIFRA) and on toxic substances in accordance with TSCA.
FY 2002 Change from FY 2001 Enacted

EPM

•      (+$ 1,328,158) This increase reflects an increase in workforce costs.

•      (-$115,400, -1.1 FTE) FTE in the New Chemicals Program risk assessment were reduced to
       meet the new Agency workforce levels. The program will rely more heavily on partnering as
       well as modeling improvements to meet statutory requirements.

•      (-$510,000) This is a reduction from the Endocrine Disrupter and other programs to help meet
       the increase in workforce costs and to fund other priorities, including scientific peer review.
       An alternative contract structure will allow the program to conduct priority research with no
       significant delays due to this change.


       Research

S&T

•      (+$715,300) This increase reflects an increase in workforce costs.

       (4486,500) The FY 2002 Request is $486,500 below the FY 2001 Enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are not
       included .in the FY 2002 President's Request.

       (-$400,000). This reduction represents a planned decrease in the AgHealth Study effort, which
       is an examination of the health of men and women in agriculture. Data collection for the study
       is scheduled to be completed in FY 2002; sample analysis will be completed and data analysis
       initiated in FY 2003; and reporting will be completed by FY 2004.  EPA's role is to evaluate
       how accurately the study questionnaire classifies pesticide application activities  and enables
       the prediction of applicator exposure and dose.


Annual Performance Goals and Performance Measures

New Chemicals and Microorganisms Review

In 2002    Of the approximately 1,800 applications for new chemicals and microorganisms submitted by
          industry, ensure those marketed are safe for humans and the environment, increase proportion

                                         IV-40

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            of commercial chemicals that have undergone PMN review to signify they are properly
            managed and may be potential green alternative to existing chemicals.

In 2001      Of the approximately 1,800 applications for new chemicals and  microorganisms submitted
            by industry, ensure those marketed are safe to humans and the environment. Increase proportion
            of commercial chemicals that have undergone PMN review to signify they are properly
            managed and may be potential green alternatives to existing chemicals.

In 2000      All new chemical pre-manufacturing  notification (PMN) submissions were reviewed within
            the required timeframe.

In 1999      EPA used TSCA authorities to review 1,717 PMNs and exemptions. EPA took control actions
            on 20 of the 31  notices involving  PBTs.  EPA received 172 toxicity tests on over 103
            chemicals.

Performance Measures:                       FY1999    FY2000    FY2001    FY2002
                                           Actuals     Actuals     Estimate    Request

TSCA Pre-Manufacture Notice Reviews        1717       1838       1800        1800       notices

Notice of Commencements                                           21%       21.6%     NOCs(Cum)

 Baseline:    In FY2000, there were potentially 78,598 chemicals in commerce; 15,992 of these chemicals
            had gone through the TSCA PMN process and entered into commerce following submittal of
            a Notice of Commencement of Manufacturing. These chemicals have been assessed for risks
            and controls are in place as necessary. A large fraction of these chemicals also may be "green"
            alternatives to existing chemicals in commerce.

PBT Profiler

In 2002      Provide industry with user-friendly, computerized tool (PBT Profiler) that allows new chemical
            product alternatives to be evaluated quickly and inexpensively for persistence, bioaccumulation
            and toxicity.

Performance Measures:                       FY 1999    FY 2000    FY2001    FY 2002
                                           Actuals     Actuals     Estimate    Request

Number of users of the PBT Profiler                                             50         users

Number of Chemicals Profiled                                                  500        chemicals

 Baseline:   In FY2001 the Agency completed development, beta testing, and independent scientific peer
            review of the PBT Profiler and began public dissemination of the PBT Profiler. Use of the
            PBT Profiler by companies at the Research and Development stage is the most effective way
            to do PBT risk screening because it is when PBT risk reduction and pollution prevention are
            most cost-effective.

Chemical Right-to-Know Initiative

In 2002     EPA will make publicly available screening level hazard data and Assessments for 8% of the
            2800 High Production Volume chemicals,  as part of the Agency's implementation of a
            comprehensive strategy for screening, testing, classifying & managing the potential risks posed
            by commercial chemicals.

In 2001     EPA will make publicly available  data from test plans submitted by industry on chemicals
            already in commerce.


                                                 IV-41

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In 2000     Industry's response to the HPV Challenge was greater than expected. Industry provided EPA
            with significantly more test  data and voluntary agreements on high production volume
            chemicals than was expected.

In 1999     EPA challenged  industry  to take responsibility for collecting data on the effects of the
            chemicals they manufacture and over 200 companies and consortia had voluntarily committed
            to make public, before the  end of 2005, basic hazard data on over 1,150 of the approximately
            2,800 HPV chemicals.
Performance Measures:
TSCA Chemical Inventory Update Rule

Under chemical right-to-know activities,
secure voluntary agreements from
chemical manufacturers to test high
production volume chemicals

Through chemical testing program, obtain
test data for high production volume
chemicals on master testing list

After reviewing submissions from
companies, make screening quality health
and environmental effects data publicly
available for 2,800 HPV chemicals
FY 1999
Actuals

Proposed
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
                                   rule
            2155
            181
            800
                                   8%
                                   chemicals
                        chemicals
                                   data (Cum)
 Baseline:   The cumulative percentage of the High Production Volume (HPV) chemicals with screening
            quality health and environmental effects data publicly available. HPV chemicals are industrial
            chemicals which are manufactured or imported into the US at 1 million pounds or greater per
            year.  EPA studies indicate that, at the beginning of the HPV chemical program, few had
            completed data sets that were available to the public.

Expand Local Information on Toxic Substances

In 2002     Provide information and analytical tools to the public for assessing the risks posed by the
            release of toxic substances in communities.

In 2001     Provide information and analytical tools to the public for assessing the risks posed by the
            release of toxic substances in communities.

In 2000     The goal of providing information and analytical tools to the public was not met due to a shift
            to other priorities. The community partnership initiating the second community analysis has
            made slow progress.

In 1999     The TRI Persistent Bioaccumulative Toxics rule was proposed. The final rule was published
            in the Federal Register in October 1999 (FY 2000).
Performance Measures:
Addition of PBTs to TRI rulemaking

Provide current national risk screening
information to the public
FY 1999
Actuals

Final
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
                                   Rule
                                               tools
                                                 IV-42

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Completion of community risk
identification analyses                                     1           2           2           analyses

Complete EPA-HQ risk-based priority
setting exercise                                                                  3           analyses

Complete EPA risk-based regional
office priority-setting system                                                      5           analyses

Complete state risk-based priority
setting exercises                                                                 6           exercises

Expand use of risk screening
environmental indicators tools to other
countries that administer pollutant
release and transfer registries                                                      1           country

Baseline:    Release of national risk screening information first occurred in FY 1999. First community risk
            identification analyses were completed in FY 2000. First National, Regional, and State level
            risk-based priority setting exercises will be completed in FY2Q02. First expanded use of risk
            screening tool by other countries will occur in FY 2002.

Risk Screening Environmental Indicators

In 2002     Reduce by 3.0% annually the risk-related score associated with air and water release pathways
            for chronic human health calculated for releases and transfers of toxic chemicals reported to
            TRI from the level calculated for the preceding year,after adjusting for changes in production
            indices for the manufacturing, mining and utilities sectors.

In 2002     Reduce by 1.5% annually, the hazard-based score for chronic human health calculated for
            releases and transfers of toxic chemicals reported to TRI  from the level calculated for the
            preceding year, after adjusting for changes in production indices for the manufacturing, mining
            and utilities sectors.

Performance Measures:                      FY 1999     FY2000    FY2001    FY2002
                                            Actuals      Actuals     Estimate    Request

Reduction in the year 2002
production-adjusted RSEI hazard-based
score of releases and transfers of toxic
chemicals reported to TRI from the
level calculated for 2001 (reported in 2004),                                        1.5%       index

Reduction in the year 2002
production-adjusted RSEI risk-related score
of releases and transfers of toxic
chemicals reported to TRI from the
level calculated for 2001 (reported in 2004).                                        3%        index

Baseline:    This production-adjusted APG  measure is based upon the Risk Screening Environmental
             Indicators (RSEI) chronic human health risk-related score which is calculated by weighting
             estimated surrogate doses associated with TRI releases by facilities. The data for 1995 are used
             as the baseline for this measure.

Research
                                                  IV-43

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Research on Commercial Chemicals and Microorganism

In 2002     Develop improved methods and models to evaluate the impact of environmental stressors on
           human health and ecological endpoints  for use in guidelines, risk assessments, and risk
           management strategies.

In 2001     Develop exposure data, and health risk assessment methodologies, and control technologies to
           improve the characterization of health risks and reduce community exposures to environmental
           chemical stressors

In 2000     EPA developed a model to assess the susceptibility of the developing immune system to
           environmental contaminants, yielding a product important for evaluating the  impact of
           environmental stressors on human health and ecological endpoints.

In 1999     Completed summary of in vitro methods used to sort chemicals acting through one-electron
           reactive mode of toxic action, which will provide the Agency with an additional approach to
           the classification of potential ecological hazard posed by new and existing chemicals.
Performance Measures:
FY1999    FY2000    FY2001    FY2002
Actuals     Actuals     Estimate    Request
Peer reviewed publication on the in vitro
screening methods for one-electron reactions.   1

Develop an animal model to assess
susceptibility of the developing immune
system to environmental contaminants.

Guidance in the use of Structure Activity
Relationships (SAR) computer technologies.

Create searchable database from existing
toxicity databases to enable researchers and
risk assessors to explore structure-activity
associations across toxicity endpoints of
regulatory interest.
                                             publication
                                             model
                                             guidance
                                  1
database
Baseline:   At present, standard guidelines for test methods and risk assessment methodologies to evaluate
           the potential risks of environmental stressors to human health and ecological systems are
           limited to certain endpoints  and are generally  non-probabilistic in nature. Improved test
           methods and risk assessment tools will be developed to more accurately predict and fully
           characterize human health and ecological risks. Improved risk management tools will also be
           developed that will better identify and reduce environmental exposures to human health and
           ecosystems.
Verification and Validation of Performance Measures

Performance Measure:  TSCA Premanufacture Notice Reviews

Performance Database: New Chemicals Management Information Tracking System (MITS), which
tracks information from  beginning of PMN program  (1979)  to present. Information  includes
premanufacture notices (PMNs), low volume and test market exemptions; number of PMNs submitted
and final disposition (whether regulated or not).
                                               IV-44

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Objective

       By
office buil<
Data Source: As needed, industry submits requests for review to the Agency, including inform
on chemicals to be manufactured and imported, chemical identity, manufacturing process, use, w<
exposure, environmental releases and disposal.

QA/QC Procedures:   LAN  server contains  confidential business information (CBI)  suj
documents on each of the chemicals; data undergo QA/QC by EPA before being uploaded to L
EPA always checks for consistency among similar chemicals in databases.
Data Quality Review:  Review of industry data; EPA staff scientists and contractors perform
screening and assessment which could lead to regulation.

Data Limitations: None known

New/Improved Data or Systems:  None planned
 Ensure Hea

    Enviroi


    Sciencs

    State ai

        To
  Air, State, I
  Air Grants

  Indoor Air

  Children's ]
Coordination with Other Agencies

       EPA's chemical testing data provides information for the Occupational Safety and He
Administration's (OSHA) worker protection programs, the National Institute for Occupational Sa
and Health (NIOSH) for research, and the Consumer Product Safety Commission (CPSC)
informing consumers about products through labels. EPA frequently consults with these agencie
project design, progress and the results of chemical testing projects

       Research

       EPA is among six agencies within the federal government that conducts intramural human,
environmental health research (EPA, NIEHS, NCI/NIH, CDC, FDA, and ATSDR).  The Age
conducts research in all elements  of the human health risk assessment paradigm (e.g., expos?
effects, risk assessment, and risk management), making our contribution unique within the Fed<
government EPA is widely recognized both nationally and internationally for its work in identify
the relationship between human health effects and exposure to environmental pollutants. Ba
research on the mechanisms underlying these effects  in combination with problem-driven resea
programs contribute significantly to the Agency's ability to fulfill its goals and obj ectives under sev<
environmental mandates.

       Collaborations with other Federal and international research organizations create an atmosph
in which the impact of the individual programs is strengthened and the overall positive impact
public and environmental health is significantly increased. For example, in 2002, the Agency v
continue its cooperation with NCI, NIEHS, and NIOSH on the Agricultural Health Study, which i
study of the health of men and women in agriculture.
Statutory Authorities
                                                                 IV-45

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Toxic Substa
and 2612)
Federal Inse(j
U.S.C. 136a|

Federal Fooc
 Federal Insej
 Toxic Subst|
 Federal FooJ
FY 1999
Enacted
FY2000
Enacted
FY 2001
Enacted
FY20I
Reque
  $5,235.4     $4,232.1      $6,562.7      $6,'

  $6,496.0     $8,437.6      $7,469.4      $7,f

      $0.0       $196.8       $206.7       $1
      $0.0
     $21.5
     $23.1
     $
Radon

Indoor Environments

Administrative Services

Regional Management



FY 2002 Request

Health Effects of Indoor Air Pollution
                                   Americans spend about 90 percent of their time indoors where they are exposed to lev
                            pollutants that are often higher than outdoors. As a result, indoor air pollution poses high ri:
                            human health, especially to sensitive populations, and has been ranked  among the top
                            environmental risks in relative risk reports.  Estimates of the economic costs to the nation of
                            indoor air quality, including lost worker productivity, direct medical costs for those whose he£
                            adversely affected, and damage to equipment and materials, are on the order of tens of billio
                            dollars per year. (Report to Congress on Indoor Air Quality. EPA/400/1 -89-001). In January 200
                            National Academy of Sciences (NAS) affirmed the significance of indoor triggers of asthma an
                            alarming increase in asthma rates nationwide (Clearing the Air: Asthma and Indoor Air Expos
                            (ISBN 0-309-06496-1, January 2000).

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

                            •      Nearly 1 in 13 school aged children has asthma and there is substantial evidence that in
                                   environmental exposures to dust mites and ETS play a significant role in triggering as)
                                   symptoms, and, in some instances, are causally  linked to the development of the dis<
                                   (Institute of Medicine, National Academy of Sciences (U.S.). Committee on the Assessi
                                   of Asthma  and Indoor Air. Clearing the Air: Asthma and Indoor Air Exposures.  1
                                   Washington. National Academy Press.)

                                   Asthma's estimated annual cost to the nation is $ 11.3 billion (National Heart, Lung, and Bi
                                   Institute, (NHLBI) 1998).

                            •      Radon is the second leading cause of lung cancer and is estimated to be responsible for 15,
                                   to 22,000 deaths per year (February 1998, BEIR VI, NAS).  Nearly 1 out of every 15 ho
                                   is estimated to have radon concentrations above the EPA recommended action level.
                                                                     IV-48

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       In schools, the General Accounting Office (GAO) estimates that 9.9 million students and
       570,000 teachers and school staff suffer illnesses annually due to poor indoor air quality.

•      Young children are exposed to Environmental Tobacco Smoke (ETS) in approximately 27
       percent of U.S. homes, increasing their risk for asthma and causing thousands of lung
       infections and other diseases. (Results of a national telephone survey entitled "Radon Risk
       Communication and Results Study" commissioned by the EPA in 1994 and 1996.)

•      Many of the pollutants of concern in combating exposure to Urban Air Toxics are also found
       indoors, and are emitted by indoor sources such as consumer products and building materials.

Indoor Environments Program Strategy

EPA has two major strategies to meet its human health objective for indoor air quality:

•      EPA raises public awareness of actual and potential indoor air risks so that individuals can take
       steps to reduce exposure. These outreach activities provide essential information to the public
       and to the professional and research communities about indoor air risks. Outreach takes the
       form 'of educational literature, media campaigns,, hotlines,  and  clearinghouse operations.
       Underpinning EPA's outreach  efforts is a  strong commitment  to environmental justice,
       community based risk reduction, and customer service.  For example, the media campaign
       undertaken in partnership with the Advertising Council seeks to educate people about asthma
       and the role that environmental triggers found indoors can play in the worsening of the disease.

•      EPA uses partnerships and technology transfer  to improve  the way  in which all types of
       buildings, including schools, homes, workplaces, and other large  buildings are designed,
       operated, and maintained to bring  about healthier environments  indoors. To support these
       voluntary approaches, EPA incorporates the most current science available as the basis for
       recommending ways that people can reduce their exposure to indoor contaminants.

       In order to encourage individuals, schools, and industry to take action to reduce risks in their
indoor environments, EPA must reach people at the local level.  To do  this, EPA uses assistance
agreements and cooperative partnerships to collaborate with organizations such as the American
Academy of Pediatrics, the Asthma and Allergy Foundation of America, the National Association of
Counties, the National Association of County and City Health Officials,  the National Education
Association, the American Lung Association, the Consumer Federation of America Foundation, the
National Environmental Health Association, and the National Council of La Raza. These partnerships
position EPA to successfully reach and educate its target audience which includes physicians who treat
children with asthma, school personnel who control the environments where children spend many
hours each day, county and local environmental health officials, and disproportionately affected,
disadvantaged populations. Through this national partner network of over 30 organizations and about
900 local field affiliates, EPA leverages the personnel, expertise, and credibility of these groups to
provide the tools to their target audiences and to the general public to make informed decisions about
reducing risk in their indoor environment.

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Indoor Environments: Children's Health Emphasis - Asthma and Environmental Tobacco Smoke

      EPA is very concerned about the rise in childhood asthma incidence, a disease which the
Centers for Disease Control (CDC) has characterized as an epidemic. The number of children with
asthma has more than doubled in the past 15 years; during the period 1996 -1998, an estimated 4 to
6 million children had asthma (National Center for Health Statistics, CDC). In 1996, 210,000
hospitalizations  for  asthma were in children under the age of eighteen (National  Center for
Environmental Health, CDC). From  1977 to  1995, there was a three-fold increase in the number of
deaths from asthma and each year  over 10 million school days are missed due to this disease
(President's Task Force on Environmental Health Risks and Safety Risks to Children, 1999). The cost
of asthma to the U.S. economy was estimated to be over $11 billion in 1998 (NHLBI, 1998).

      In FY 2002, EPA will continue to implement the cross-Agency initiative to reduce childhood
asthma incidence and severity, focusing on reducing children's exposure to indoor triggers of the
disease.   EPA  is  working, with  other Federal agencies, to ensure that indoor environmental
management is an integral part of asthma care in the United States.  While there is no known cure for
asthma at this time, the medical community is in agreement, and it is established in national guidelines,
that both medical treatment and environmental management are needed to effectively control asthma.
However,  indoor  environmental management is often not practiced  and often not part of the
prescription for  managing asthma. EPA is targeting two primary audiences to help address indoor
asthma triggers nationwide — the medical community and the general public.

      First, the Agency is working to improve the medical community's awareness of and attention
to indoor asthma triggers and their role in triggering asthma attacks in asthmatics. EPA, in conjunction
with the Department of Health and  Human  Services (HHS)  agencies, is coordinating a series of
conferences with managed care organizations to discuss current asthma care practices and to encourage
greater emphasis on avoidance of asthma triggers as  part of a comprehensive asthma treatment
regimen. In FY 2002, EPA will continue to follow-up on these conferences to share lessons learned
about how to better integrate medical treatment and environmental management.

      Second,  EPA will continue, with the help of the Advertising Council, to raise the awareness
of the general public about indoor asthma triggers. Particular attention will be paid to children with
asthma and their care givers and to low income adults with asthma. Support and  direction will be
provided to asthma groups that educate low-income residents  about the environmental components
of asthma in the home setting and funding will continue to increase the introduction of school-based
asthma education programs, such as the American Lung Association's "Open Airways," into hundreds
of  additional schools nationwide,  with an emphasis  on  reaching  inner  city schools with
disproportionately affected populations. The program teaches students with asthma to identify and
control their exposure to the asthma trigger in  their environment, and helps staff, and teachers
understand the steps they can take to improve their school's asthma management.

      In FY 2002, EPA will  expand  implementation of "Indoor Air Quality  (IAQ) Tools for
Schools," a program to improve the environment inside schools. Adoption of these low-cost/no-cost
guidelines for proper operation and maintenance of school facilities will result in a healthier indoor

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environment for all students and staff, but will be of particular help to children with asthma, lessening
the degree to which they are exposed to indoor asthma triggers. EPA will regularly evaluate the
training materials for these school-based proj ects to ensure that they effectively and efficiently address
the environmental issues and maintain a uniform tracking system to document program progress.

       EPA will continue to collaborate with Federal, state, and community organizations to focus on
in-home  asthma education as a proven  and practical  method of helping children and their
parents/guardians identify and reduce indoor environmental asthma triggers. The Agency will work
with housing groups, home health educators, community groups, and building operators to design,
conduct,  improve, and track efforts which substantially reduce indoor environmental triggers for
asthma in low-income housing.

       EPA will support  on-going work to reduce asthma  and other childhood disease by
implementing programs designed to reduce the number of homes where young children are exposed
to ETS. ETS exposure increases the risk of lower respiratory tract infections such as bronchitis and
pneumonia. EPA estimates that between 150,000 and 300,000 of these cases annually in infants and
children up to 18 months of age are attributable to exposure to ETS (EPA 1992). ETS exposure is
causally  associated with increased risk of acute and chronic middle ear disease (WHO  1999).
Asthmatic children are especially at risk since ETS exposure increases the number of episodes and
severity of symptoms for up to 1,000,000 asthmatic children.  Recent studies have suggested links
between  ETS exposure, sudden infant  death syndrome, and low birth weight^  The Agency will
continue its multi-media campaign on environmental tobacco smoke, including the Smoke Free Homes
Pledge program, which targets the parents of young children, advising them not to expose children to
smoke inside the home. EPA will continue to work in collaboration with the CDC, states, and local
organizations to develop and make available tools and resources which motivate parents and guardians
to make their homes smoke-free. EPA will continue grant support to state and local governmental
tobacco control programs to help reduce the proportion of homes in which  children are exposed to
secondhand smoke.

Indoor Environments: Homes. Schools, and Buildings Programs

       EPA continues to work toward bottom line results for the Indoor Environment base programs
including implementation of the Indoor Air Quality (IAQ) "Tools for Schools" kit and the "Open
Airways" program in elementary schools, office buildings managed with good Building Air Quality
practices, home radon tests completed, home radon mitigation accomplished, and new homes built
with radon-resistant features. EPA provides assistance to the public, other governmental agencies, and
non-governmental organizations to help meet the program's objective to reduce indoor environmental
pollutants.

       Through the State Indoor Radon Grant Program, EPA provides assistance to the states for the
development and implementation of programs to assess and mitigate radon, thereby enhancing the
effectiveness of state and local activities for radon risk management. The grant program helps: 1)
establish the basic elements of an effective Radon Program in states that have not yet done so and
                                         IV-51

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support innovation and expansion in states that currently have programs in place, and 2) strengthen
the Federal/state partnership by helping states develop radon program elements and activities.
FY 2002 Change from FY 2001 Enacted Budget

EPM

*      (-$ 1,205,700) This reduction will decrease the number of asthma interventions by EPA, reduce
       outreach efforts for environmental tobacco smoke (ETS ), and reduce the number of "Tools
       for Schools" kits distributed.  The inception of education and outreach programs generates a
       range of start-up costs. As these activities mature, the Indoor Environments program is
       identifying opportunities to streamline operations.

*      (+$429,300) Resources are requested for increased payroll needs.



Annual Performance Goals and Performance Measures

Healthier Residential Indoor Air

In 2002 848,000 additional people will be living in healthier residential indoor environments.

In 2001 890,000 additional people will be living in healthier residential indoor environments.

In 2000 1,032,000 additional people are living in healthier residential indoor environments.

In 1999 1,322,000 additional people are living in healthier residential indoor environments.

Performance Measures:                 FY 1999        FY2000       FY2001        FY2002
                                     Actuals         Actuals        Estimate        Request

People Living in Healthier Indoor Air      1,322,000       1,032,000      890,000        848,000 People

Baselines:      1. By 2002, increase the number of people living in homes built with radon
               resistant features to 3,320,000 from 600,000 in 1994. (cumulative)
               2. By 2002, decrease the number of children exposed to ETS from  19,500,000 in 1994 to
                 17,222,000. (cumulative)
               3. By 2002, increase the number of people living in radon  mitigated homes to 1,561,700 from
                 780,000 from 1994. (cumulative)
               4. By 2002, increase by 136,000 the number of people with asthma and their caregivers who are
                 educated about indoor air asthma triggers.

Healthier Indoor Air in Schools

In 2002 1,228,500 students, faculty and staff will experience improved indoor air quality in their schools.

In 2001  1,930,000 students, faculty and staff will experience improved indoor air quality in their schools.
                                              IV-52

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In 2000 2,580,000 students, faculty and staff are experiencing improved indoor air quality in their schools.

In 1999 1,050,000 students, faculty, and staff experienced improved indoor air quality in their schools.

Performance Measures:          FY1999       FY2000       FY2001        FY2002
                            Actuals        Actuals        Estimate        Request

Students/Staff Experiencing Improved
Indoor Air Quality in Schools     1,050,000      2,580,000      1,930,000       1,228,500  Students/Staff

Baseline:       The nation has approximately 110,000 schools with an average of 525 students,
              faculty and staff occupying them for a total baseline population of 58,000,000. The
              IAQ "Tools for Schools" Guidance implementation began in 1997, and the
              program's projection for 2002 is that an additional 2,340 schools will implement the
              guidance (additional, not cumulative since there is not an established baseline for
              good IAQ practices in schools.)


Verification and Validation of Performance Measures

P^orman^Measure:  People Living in Radon Resistant Homes

Performance Database: Survey

Data Source: National Association of Home Builders (NAHB) annual membership survey

QA/QC Procedures: Not known - Data is obtained from an external organization

Data Quality Review: N/A

Data Limitations: This is a voluntary survey and may under report the number of radon resistant new
homes built,

New/Improved Data or Systems: None
Performance Measure: People Living in Radon Mitigated Homes

Performance Database: External

DataSource: Radon fan manufacturers report fan sales to the Agency.

QA/OC Procedures: Not known - Data is obtained from external organizations

Data Quality Review: N/A


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Data Limitations: Reporting is voluntary and may underestimate the number of radon fans sold.

New/Improved Data or Systems: None
Performance Measure; Children Under 6 not Exposed to Environmental Tobacco Smoke (ETS) in
the Home

Performance Database:  National telephone survey of a representative sample of almost 31,000
homes.

Data Source: EPA

QA/QC Procedures: Designed, conducted, and analyzed in accordance with approved Agency
procedures.

Data Quality Review: N/A

Data Limitations: Random digit dialing methodology is used to ensure that a representative sample
of households has been contacted; however, survey is subject to inherent time limitations of
voluntary telephone surveys of representative samples.

New/Improved Data or Systems: None
Performance Measure: Students/Staff Experiencing Improved Indoor Air Quality (IAQ) in Schools

Performance Database: Survey of representative sample of schools.

Data Source: EPA

OA/QC Procedures: Designed, conducted, and analyzed in accordance with approved EPA QA/QC
procedures.

Data Quality Review: N/A

Data Limitations: Subject to inherent limitations of voluntary telephone surveys of representative
samples.

New/Improved Data or Systems: Survey will be conducted in 2001 to determine implementation and
adoption of good IAQ practices.
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Coordination with Other Agencies

      EPA serves a unique role in programs related to safety, consumer products and schools
because of its experience and track record in raising public awareness of actual and potential indoor
air risks, in addition to past work on indoor air quality issues associated with consumer products, and
its expertise in the areas of indoor air quality in schools. EPA also plays a lead role in the Task
Force for Environmental Asthma Issues.

      EPA works with Federal,  state, and local government  agencies, industry, non-profit
organizations, individuals as well  as other nations to promote  more effective approaches  to
identifying and solving indoor air quality problems. EPA works with the:
*     Department of Health and Human Services (HHS) to develop and conduct programs aimed
      at reducing children's exposure to known indoor triggers of asthma, including environmental
      tobacco smoke;
•     Department of Housing and Urban Development (HUD) on home safety issues especially
      those affecting children;
•     Consumer Product Safety Commission (CPSC) to identify and mitigate the health hazards
      of consumer products designed for indoor use;
•      Department of Education (DoEd)to encourage construction of schools with good indoor air
      quality; and
•     Department of Agriculture (USD A) to encourage USDA Extension Agents to conduct local
      projects designed to reduce risks from indoor air quality.

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

Radon Gas and Indoor Air Quality Research Act of Title IV of the Superfund Amendments and
Reauthorization Act (SARA) of 1986

Toxic Substances Control Act (TSCA), section 6, Titles II, and Title III (15 U.S.C. 2605 and 2641-
2671)

Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)

Clean Air Act (CAA)

Safe Drinking Water Act (SDWA)
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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

    Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
                                       Ecosystems

Objective # 5:  Facilitate Prevention, Reduction and Recycling of PBTs and Toxic Chemicals

       By 2005, facilitate the prevention, reduction, and recycling of toxic chemicals and municipal
solid wastes, including PBTs. Jn particular, reduce by 20 percent the actual (from 1992 levels) and
by 30 percent the production-adjusted (from 1998 levels) quantity of Toxic Release Inventory (TRI)*
reported toxic pollutants which are released, disposed of, treated, or combusted for energy recovery,
half through source reduction
                                   Resource Summary
                                  (Dollars in thousands)
                                        FY1999
                                        Enacted
          FY 2000
           Actual
FY 2001
Enacted
FY 2002
Request
Facilitate Prevention, Reduction and            $41,923.2     42,130.70     47,448.30      40,661.20
Recycling of PBTs and Toxic Chemicals

    Environmental Program & Management        $32,850.7     31,207.60     38,395.80      31,608.70
    State and Tribal Assistance Grants
       Total Workyears
$9,072.5     $10,923.1      $9,052.5      $9,052.5

  211.8        264.9         193.3         185.2
                                     Key Programs
                                  (Dollars in thousands)

Design for the Environment
New Chemical Review
Pollution Prevention Program
Pollution Prevention Incentive Grants to States
FY 1999
Enacted
$4,724.9
$0,0
$9,449.5
$5,999.5
FY2000
Enacted
$4,741.9
$1,443.0
$8,333.2
$5,999.5
FY2001
Enacted
$4,976.8
$1,604.3
$8,608.9
$5,986.3
FY 2002
Request
$4,979.0
$1,608.0
$8,871.5
$5,986.3
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                                            FY1999     FY2000     FY2001     FY2002
                                            Enacted     Enacted     Enacted     Request
RCRA State Grants                                $3,073.0      $3,073.0      $3,066.2      $3,066.2

Waste Minimization                               $2,413.2      $1,913.3      $1,979.9      $2,120.0

Source Reduction                                 $2,299.0      $1,950.9      $1,883.3      $2,052.7

Recycling                                       $4,232.9      $3,639.3      $3,351.1      $3,712.7

Common Sense Initiative                           $1,119.1       $379.5       $385.2         $0.0

Administrative Services                               $0.0        $58.5        $96.7        $95.7

Regional Management                                $0.0        $89.0        $85.3        $90.0


FY 2002 Request

       Pollution prevention (P2) is designed to prevent contaminants from entering the environment,
in contrast to risk management and remediation, which are designed to control pollutants that have
already been introduced.   Under the Pollution  Prevention Act of 1990, "pollution should  be
prevented or reduced at the source whenever feasible" as the preferred approach to environmental
protection. Compared to approaches that control, treat, or clean up pollution, P2 can sometimes be
more effective in reducing potential health and environmental risks to the extent that it may:

•      reduce releases to the environment;
•      reduce the need to manage pollutants;
•      avoid shifting pollutants from one media (air, water, land) to another; and
•      protect natural resources for future generations by cutting waste and conserving materials.

       Preventing pollution can be cost-effective to industry in cases where it reduces excess raw
materials and energy use.  P2 can also reduce the need for expensive "end-of-pipe" treatment and
disposal, and support quality improvement incentives in place at facilities.  Current EPA strategies
include  institutionalizing  preventive   approaches  in  EPA's  regulatory,  operating,  and
compliance/enforcement programs and facilitating the adoption of pollution prevention techniques
by states, tribes, the academic community and industry. EPA uses market incentives, environmental
management tools and new technologies to promote wider adoption of P2 measures.

       Much progress has been made in carrying out these strategies, though more work remains.
Perhaps the fastest growing opportunities lie in private sector partnerships, which enable EPA's
knowledge of P2 principles and techniques to be combined with industry-specific expertise in
production and process design.   Another opportunity for  building P2 practices into industrial
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operations  lies in partnerships with the academic community.  By developing and providing
educational tools for universities to train the next generation of engineers, we plant the seeds needed
to replicate P2 practices throughout industry.

FY 2002 Key Program Activities

       In FY 2002, EPA will work to achieve the pollution prevention objective by pursuing a
coordinated set of activities, tailoring programs and projects to the concerns and interests for each
arena.  Every type of organization and each individual consumer has a part to play in preventing
pollution.  P2 approaches can be flexibly applied to most endeavors. The Agency will promote
effective pollution prevention through the following programs and activities:

Pollution Prevention Incentive Grants to States

       The States are the primary sources for businesses and communities that are seeking assistance
in identifying and applying prevention approaches. EPA has provided seed money to help states in
promoting innovation and developing state capacity. The Pollution Prevention Incentives for States
(PPIS) grants foster the development of newP2 approaches by providing funds to states in the areas
of technical assistance and training, education and outreach, regulatory integration, demonstration
projects, legislative activities and awards programs. Another key program for states, the Pollution
Prevention Resource Exchange, helps to support technical assistance organizations by coordinating
the development and dissemination of up-to-date information on P2 approaches.

Pollution Prevention Program

       (a) Sustainable Business Practices.  Businesses can sometimes reduce costs significantly by
implementing effective P2 programs.  Sometimes the savings are not readily apparent because of the
structure of the company's internal accounting system. The Agency will play a role in encouraging
businesses  to modify their management accounting  systems to fully and explicitly account for
environmental costs. These strategies are designed to improve the current business management
framework in ways that will enable companies
to more easily choose prevention practices.
       EPA will build on the success of the
Michigan Source Reduction Initiative (MSRI)
by  initiating additional projects in FY2002
using the approach pioneered under the MSRI.
EPA  is  working to identify  new industry
partners. In addition, the Agency will develop
Sustainable Business Franchises to  provide
corporations a fully developed, self-sustaining
module for the delivery  of environmental
technical  assistance.  Finally,  EPA  plans a
project   called   "Driven  to   Success:
 The Michigan Source Reduction Initiative
                 (MSRI)

MSRI was undertaken by NRDC, Dow Chemical, and
a group of community activists to reduce waste and
emissions at Dow's Midland, Michigan, chemical
manufacturing plant. The project, begun in late 1996
and completed in April 1999, aimed to achieve its 35%
reduction goal through pollution prevention and
manufacturing process improvements that decreased
waste before being generated. The project exceeded
that goal, achieving emission reductions of 43 percent.
The facility's initial investment of $3.1 million in these
improvements has returned $5.4 million annually.
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Benchmarking Eco-Leadership" to provide a clearer picture of those environmental performance
initiatives that result in sustainable industrial and business practices, and to better identify and
delineate the factors that motivate companies to undertake these initiatives.

       (b) Government Actions. The Agency is invested in sharing information and supporting State
programs on Pollution Prevention.   During FY2002, State Program  Support  will include
management of the PPIS grants (discussed above); P2 Results; and support of the National Pollution
Prevention Roundtable. In the area of Information Sharing, EPA will continue funding the Pollution
Prevention Information Clearinghouse and management of the highly  successful  Pollution
Prevention Resource Exchange.

       (c) Safer Products.  EPA has the lead in implementing the Pollution Prevention Act (PPA)
and in carrying out Executive Order 13101 and its predecessor, Executive Order 12873, section 503.
The PPA requires EPA to "identify opportunities to use Federal procurement to encourage source
reduction." These orders require the Federal government to use its purchasing power - about $200
billion in goods and services each year - to create a demand for products and services that have a
reduced impact on the environment (i.e., environmentally preferable products, or EPPs).   The
Agency finalized guidance in 1999 to help executive agencies identify and purchase environmentally
preferable products and services. In FY 2002, EPA will expand demonstration projects to include
electronic products and Department of the Interior cafeteriaware.  Other program activities for
FY2002  include  the   development  of  tools  to assist  government  purchasers .in making
environmentally preferable purchases.  Additionally, the Agency will conduct a benchmark
measurement of the performance and extent to which government purchasers are actually making
environmentally preferable purchases.

       EPA is moving forward with efforts to provide information consumers can use to make
environmentally friendly choices, through the use of Environmentally Preferable Products (EPP).
The Consumer Labeling Initiative (CLI) is designed to improve household product labels to better
present environmental, safe use,  health, and other information.  Proper  labeling is especially
important for products that are used by or around children, so that parents can evaluate potenial risks
to children from possible exposure to toxic chemicals.   During FY2002, the CLI program will
conduct significant public outreach on Reading the Label—First, encouraging consumers to read the
product label prior to purchase and use.

       (d) PBT Program. The Agency is concerned about  persistent, bioaccumulative and  toxic
(PBT) substances, such as mercury,  dioxin, and DDT,  because these pollutants persist in the
environment and can build up to high concentrations in human and animal tissue. Some PBTs can
cause developmental and neurological defects in fetuses and young children and  some are also
suspected endocrine disrupters.

       (e) Environmental Justice through Pollution Prevention. The Environmental Justice P2
Program administers grants to low-income, minority and  federally recognized tribal communities
to develop innovative P2 projects and capacity building approaches to  address environmental
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concerns.  In 2002, this program will be phased out as a separate component of the P2 program,
reflecting increasing integration of P2 and environmental justice into other base programs.

       To address continuing issues associated with PBTs, EPA launched a cross-office, cross-
media PBT program in FY 1999. Through this effort, the Agency seeks to prevent, minimize and,
when possible, eliminate PBTs which are harmful to both human health and the environment. The
initiative's cross-media approach is designed to stop the transfer of PBT pollutants across media
using all of EPA'stools: regulatory, compliance assistance, enforcement, research, voluntary actions,
prevention, and international negotiations. The PBT program fosters cross-agency collaboration on
activities related to priority PBTs by building on actions by individual national program offices and
regions, and by providing resources for priority PBT activities that further this agency-wide effort.


                  Fish  and  Wildlife Advisories  by Type
                                        1993-1999
    v>
           1993
1994
1995
1996
1997
1998
1999
           Cornmerical Fishing Ban
           Restricted Consumption - Sensitive
           Subpopulation
           Restricted Consumption - General Population
                               No consumption - Sensitive Population
                               No consumption - General Population
This chart shows fish and wildlife advisories issued from 1993 to 1999. Persistent bioaccumulative toxic (PBT)
chemicals (e.g., mercury, PCBs, chlordane, dioxins, and DDT) were involved in 99% of all advisories. EPA and
its partners are addressing the presence of PBTs in the environment. The advisory data indicate that much work
needs to be done to ensure that individuals who consume fish and wildlife in quantity are protected from toxics
in their food. The Agency is currently reviewing the extent to which changes in monitoring, rather than changes
in water quality, may have impacted the numbers over time.

       By the beginning of FY 2002, the Agency plans to establish an agencywide, complete PBT
Strategy and specific  National Action Plans for  priority  PBTs,  and to initiate  full-scale
implementation of those plans, particularly for  mercury.  Critical measurement and monitoring
efforts will be in their third year, facilities will be collecting PBT  chemical release data under the
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new TRI rule, and submissions under TSCA for approval of new PBT chemicals for entry into
commerce will be under close scrutiny. New activities for FY 2002 are to include:
                                                               £

•      Development of cross-cutting action plans for PBT monitoring and risk communication
•      Increased focus on regional/state implementation projects
•      Major emphasis on dioxin, continuing emphasis on mercury and PCBs
•      First results from major measuring, monitoring and data collection efforts

       To ensure full scientific and public review as potential PBT chemicals are identified, EPA
is increasing its peer review and outreach. In a key example, the Agency is formulating a request
to the Science Advisory Board (SAB) to review the issue of whether lead should be classified as a
highly bioaccumulative substance. The SAB review process is an open, public process. The Agency
also has an ongoing working relationship with representatives of the metals industry. EPA will
continue to meet with them and other interested members of the public on issues of appropriate
methodologies for determining the levels of persistence and bioaccumulation of metals and metal
compounds.

Design for the Environment and Other Programs

       One of the Agency's key P2 industry  sector-based programs focuses on fostering cleaner
technologies and the reduction of potential risks to health and the environment through the adoption
of safer chemicals and workplace practices.   EPA's Design for the Environment (DfE) Program
works in partnership with industry to develop comparative risk, performance, and cost information
about  alternative technologies, chemicals, and  processes  to better aid industry in making
environmentally-informed decisions.  Through this program, EPA has entered into partnerships with
more than 15 industries, including printing and graphics; textile and garment care; electronics and
computers; automotive manufacturing, repair, and refinishing; industrial and institutional laundries;
foam furniture manufacturing; paints and coatings; and others. In 2002, EPA intends to initiate DfE
Partnerships hi the boat building and  furniture repair industries.

       DfE partnership projects support the reduction of risks to health and the environment through
the development  of a better understanding of workplace and environmental hazards, through
identifying incentives to encourage the adoption of safer workplace practices, and through providing
technical support towards the redesign  of safer  chemicals, mixtures, formulas, products, and
technologies. In particular, DfE partnerships have already begun to see changes in either the use of
chemicals or workplace practices in industrial and institutional laundry product formulations, dry-
cleaning and garment care, and in the electronics industry.  DfE's partners hi the flexographic ink,
electronics, and foam furniture product industries expect to complete the technical aspects of these
alliances during FY 2001 and will continue outreach activities through 2002.

       DfE has completed comparative assessments  on  over 700 chemicals  and continues to
evaluate several hundred additional chemicals each year.  The switch to alternative cleaner, safer
chemistries and/or the adoption of P2 practices in the workplace can result in the reduction of the

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use of hazardous chemicals. These use reductions will translate into lower quantities of hazardous
chemicals released, disposed of, treated, or combusted for energy recovery; contributing to the
overall objective of achieving a 20 % reduction in such quantities.

       The current focus of the  Green Engineering Program (GE) is on education.  Green
Engineering aims to educate senior-level undergraduates as well as graduate students in engineering
to build P2 principles into the design and operation of industrial processes.  EPA has developed a
Green Engineering textbook and other educational materials. Several schools have already used the
draft manuscript in their classes as a primary textbook. EPA is working with the American Society
of Engineering Education (ASEE)  to further disseminate GE information to engineering schools.
In 2002, there will be Green Engineering Tract at the Summer American Society of Engineering
Education (ASEE) Conference.

       The Buy Clean program applies Environmentally Preferable Purchasing principles to indoor
environmental quality, with an emphasis on its potential for reducing risk to schoolchildren from
exposure to indoor air pollutants.  Concentrations of environmental chemicals can be considerably
higher indoors than outside, and many indoor air pollutants are suspected of triggering asthma
episodes  in children. The program is focusing on products used in schools, placing priority on
developing guidance, resources, and incentives for schools  and their partners to evaluate products
and services  on the basis of health, environmental, and  product effectiveness characteristics;
incentives for schools to purchase preferable products and services; and incentives for manufacturers
to commercialize and market environmentally preferable products and services.

       In 2002, EPA will complete development of the technical tools and supporting infrastructure
necessary to begin to extend the Buy Clean program nationwide. This work will build upon the pilot
grant program, case studies, tools and guidance materials developed for Buy Clean.  EPA will
finalize and distribute the case studies  from the pilot Buy Clean programs and recognize the
accomplishments  of the pilot Buy Clean schools, which were implemented across the country.
These case studies and accomplishments are intended to serve as examples for other schools to
implement Buy Clean. As the program pilots are evaluated, outreach to other state and federal
partners,  such as the Department of Education, will take on increasing importance to the success of
the program.  One outreach option under consideration is to establish a  network of centers with
public health expertise that would assist school s, develop additional tools for vendors, and work with
City, County  and State public health professionals and other partners.

       The pollution prevention approaches discussed above are aimed at providing assistance and
incentives to various sectors of society to promote new habits and new ways of doing business that
are sustainable, cost-effective and beneficial to the environment.  These  activities can promote
greater ecological efficiency and therefore help to reduce the generation and release of production-
related waste.

Green Chemistry
                                         IV-62

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       The Green Chemistry Program fosters the research, development, and implementation of
innovative chemical technologies that can accomplish pollution prevention in both a scientifically-
sound and cost-effective manner. The Green Chemistry Program recognizes and promotes chemical
technologies that reduce or eliminate the use or generation of hazardous substances during the
design, manufacture, and use of chemical products and processes and that have broad application
in industry. More specifically, the Green Chemistry Program supports fundamental research in the
area of environmentally benign chemistry as well as a variety of educational activities, international
activities, conferences and meetings, and tool development. Green Chemistry Program partners
include industry, academla, trade organizations, scientific societies,  and other state and federal
government organizations.

       The Green  Chemistry Challenge Program  continues to be  effective at catalyzing the
behavioral change necessary to drive the research, development, and implementation of green
chemistry technologies.  In addition,  this program also continues to provide an opportunity to
quantitatively demonstrate the technical, environmental, and economic benefits that green chemistry
technologies offer. In 2002, the Green Chemistry Program will also be focusing its outreach, awards,
and grants efforts to target 1) certain audiences not currently involved in green chemistry product
and process design and 2) specific high priority chemicals, products, and/or processes for which safer
or greener alternatives are not available.

Resource Conservation and Recovery Program

       Pollution prevention and safe recycling are two of the nation's best tools for environmental
protection. Well implemented, systematic source reduction  and recycling programs solve waste
management problems at their source, lowering pressure on the environment and reducing energy
use at a number of critical points- production of raw materials, subsequent processing into finished
products, and eventual transport and disposal at a waste management facility. At the same time, the
best programs save industry and government money.

       The Resource Conservation and Recovery Act (RCRA)jiirectsJ:PA to promote a reduction
in the amount of waste generated and improved recovery and conservation of materials through
recycling. The RCRA program emphasizes a  national policy focusing on a hierarchy of waste
management  options that advocates source reduction, reuse and recycling over treatment and
disposal. In the 1990 Pollution Prevention  Act,  Congress codified  this hierarchy of waste
management options, reaffirming the need for  source reduction and recycling programs for both
hazardous and municipal solid wastes.

       The activities in this objective encompass the Agency's partnership with states, Tribes and
local communities  to reduce toxic chemicals in industrial hazardous waste streams, to reduce the
generation of municipal, hazardous and other solid waste through pollution prevention, and to
increase recycling of hazardous and municipal solid waste.

       In the hazardous waste arena, the Agency is complementing its regulatory control program
with a strong emphasis on developing waste minimization partnerships with industry to reduce the

                                         IV-63

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generation of wastes that are most harmful to human health and environment. In concert with
international goals of reducing the presence of persistent, bioaccumulative and toxic chemicals
(PBTs) in the environment, the RCRA program will rely on a list of chemicals of concern developed
across EPA and will emphasize voluntary partnerships with states, industry and communities to find
ways to reduce them.

       The Agency is currently drafting an  initial description of trends in amounts of PBT
constituents in hazardous waste since 1991. This trends report is planned as the first annual analysis
that will  aid EPA in tracking progress toward its GPRA goal of reducing the presence of PBT
chemicals in RCRA hazardous waste by 50 percent by 2005, compared to a 1991 baseline. The
annual trends analysis will give an overview of the state generation and management of hazardous
waste containing PBTs and will provide detail by industry sector and by state.

       In 2002, EPA will focus its efforts on the implementation stage of its program to reduce
hazardous wastes containing PBTs.  EPA will sponsor industry workshops, encourage increased
technical assistance and information sharing, and publicly recognize industry leaders. One example
is a multi-year partnership with the New England  states to reduce the generation of industrial
hazardous and municipal waste containing  mercury. This partnership is already  influencing
companies that produce appliances and instruments containing mercury to examine low or non-
mercury technologies.

       The Agency will be reviewing where regulatory innovations can increase the rate of recycling
in 2002. This will include regional and State collaboration to clarify or revise existing policy related
to hazardous waste recycling. EPA will also increase recycling by working with industry. The
Agency will continue its efforts to issue a rule encouraging the recycling of lead-containing cathode-
ray tubes, investigate whether other electronic devices are being recycled safely and how electronics
recycling can be  increases, and continue to work with  specific industry sectors (e.g., printing and
metal finishing) on innovative approaches to promoting safe recycling.

       Pollution prevention and waste reduction have clear benefits combating the ever-growing
stream of municipal solid waste. Annual generation of municipal solid waste (MSW) grew steadily
from 88 million to 217 million tons between 1960 and 1997.  MSW includes waste generated from
residences, commercial establishments, institutions, and industrial non-process operations. The
RCRA municipal  solid waste program provides national  leadership,  technical assistance and
outreach  for businesses, industry, and municipalities implementing source reduction and recycling
systems in their  plants, facilities and communities, as well as for states and tribes whose laws
provide the structure for these activities. The program implements a coordinated set of strategies
to manage wastes, including  source reduction (also called waste prevention), recycling (including
composting), combustion, and landfilling.   Preference is given to strategies that maximize the
diversion of waste from disposal facilities, with source reduction (including reuse) as the highest
priority, followed by recycling.

       In 2002,  the Agency will promote  the economic, environmental, and social benefits of
municipal solid waste source reduction and recycling, including composting.  The Agency will

                                         IV-64

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continue building partnerships with government agencies, tribes, non-profit organizations, business,
and industry to make advancements toward achieving the national goal  of a 35% diversion of
municipal solid waste from landfills and combustion by 2005.  The Agency will share technical
information through satellite broadcast forums, workshops, training, and outreach materials. These
efforts will  help local governments  assess progress by applying  EPA's Source Reduction
Measurement Methodology and establish equitable and fair "Pay as You Throw" fee systems for
solid waste services. The Agency will promote participation in voluntary programs like Waste Wise
and engage in discussions with business and industry to show them how they can help achieve the
national recycling goal.  EPA will focus on materials that are difficult to recycle and materials that
are generated in large quantities including construction and demolition debris, electronics, food
waste, tires, plastics and carpet.

       In 2000, Waste Wise signed its 1000th partner. The program's partners have reduced in total
over 7.7 million tons of waste. Waste Wise will recruit new partners  by demonstrating the best
practices in waste diversion and buying recycled products,  and help partners realize how they can
save money by doing it. In 2002, the Waste Wise program will seek federal sector partners to promote
source reduction, recycling and buy-recycled programs. EPA expects dozens of additional partners
as a result of increased compliance with RCRA 6002, which requires federal agencies to buy
products made with recycled content.  Regional staff will recruit new partners and will provide
valuable technical assistance to them.
                      Waste Recycling  Rates
                                 1960-1998
              1960
1970
1980
1990
1997
1998
     Environmental Fact Sheet, April 2000
     USEPA, Washington DC (EPA530-FOO-024)
                                                         Percent Recycled

                                                      Waste Recycled (mt/y)
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       The  Waste Wise federal  sector  focus  complements EPA's issuance  of additional
Comprehensive Procurement Guidelines  (CPG) that establish guidelines for Federal and state
purchasing to help improve the market for products made from materials recovered from the solid
waste stream. These efforts will foster implementation of Executive Order 13101, which requires
Federal agencies to reduce waste, reuse materials and recycle. In 2000,18 items, such as industrial
drums, carpet cushion and park benches, were added to the CPG bringing it to a total of 54 products.
Continuing advancements in technology  development will increase the  number and quality of
recycled content products in the marketplace that could be featured in EPA's biannual guidelines,
required by Executive Order 13101.

       One effort that has built momentum both internationally and domestically and is expected
to continue into 2002 is Extended Product Responsibility (EPR). By engaging in discussion with
product manufacturers, EPA will encourage them to evaluate the life cycle of their product so that
product design and manufacturing can be modified to reduce impacts on the environment. The
Agency will encourage product manufacturers to determine what their appropriate role is in the
recycling of their products at end-of-life. EPA has witnessed substantial engagement by electronics
and carpet manufacturers in EPR discussions this past year. EPR is a broad-reaching environmental
principle that will complement environmental programs across the Agency.

       Through creation of new recycling and reuse businesses, EPA's Jobs Through Recycling
(JTR)  program has succeeded  in stimulating  both  markets for recycled materials and job
opportunities. In 2002 the JTR program will provide a national forum for information exchange on
recycling technology, economics of recycling, and business financing opportunities.
FY 2002 Change from FY 2001 Enacted

EPM

•      (-$ 1,424,800, -4 FTE) The Environmental Justice Grants Program was eliminated due to the
       need to focus resources on higher priority mandated programs and to meet the new Agency
       workforce levels.

•      (-$104,700, -1 FTE) One FTE was reduced in the Design for the Environment program to
       meet the new Agency levels. DfE partnerships in 2002 will be reduced in scope from
       previous years.

•      (-2.7 FTE) The reduction is from the facilitation of prevention, reduction and recycling of
       Persistent Bioaccumulative Toxins (PBTs), and Municipal Solid Waste (MSW).

       (-$ 12,571,900) The F Y 2002 request is $ 1,995,500 below the F Y 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which
       are not included in the FY 2002 President's Request.
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       (+$980,800) This increase reflects an increase in workforce costs.

       (+$310,000) The Agency redirected resources from Goal 5 to support waste identification
       activities.  EPA will issue a rule encouraging the recycling of lead-containing cathode^ray
       tubes and collect data on innovative approaches to promoting safe recycling in the printing
       and metal finishing sectors.

       (+$385,000) The Agency redirected resources from Goal 5 to support waste minimization
       activities that focus on  reducing hazardous wastes  containing PBTs.   This will  be
       accomplished through voluntary partnerships with states, industry and communities and by
       sponsoring industry  workshops,  increasing  technical  assistance and providing  public
       recognition.

       (+$207,300) The Agency redirected resources from Goal 5 to adjust the working capital fund.
Annual Performance Goals and Performance Measures

Toxic Release Inventory (TRI) Pollutants Released

In 2002     The quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or
           combusted for energy recovery in 2002, (normalized for changes in industrial production)
           will be reduced by 200 million pounds, or 2%, from 2001.  This data will be reported in
           2004.

In 2001     The quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or
           combusted for energy recovery in 2001 (normalized for changes in industrial production)
           will be reduced by 200 millions pounds, or 2%, from 2000. This data will be reported in
           2003.

In 2000     Projections for Form Rs submitted are based on past year submissions.

In 2000     EPA exceeded its target of a reduction of 200 million pounds of TRI pollutants released.

In 1999     Total releases of toxic chemicals decreased by 38.8million pounds from  1995 thru 1997.
           The 1997 TRI data, however, reflect a continued increase in production related wastes. This
           increase is accompanied by a continued increase in the use of pollution prevention practices
           by industry.

Performance Measures:                     FY1999     FY2000     FY2001    FY2002
                                        Actuals      Actuals     Estimate    Request

Form Rs with Source Reduction
activities (cumulative)                                  134,000                          Facilities

Reduction of TRI non-recycled
 waste (normalized)                        LIB Ibs incr.405 Million  200 Million 200 Million Ibs


                                                IV-67

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Baseline:    Baseline for 2002 is level of pollutants released in 2001.

Improvement of Indoor Environ. Quality in Schools

In 2002     Work with one school district to develop criteria/tools  for procurement of products that will
            improve indoor environmental quality; identify two high priority product categories for use in
            pilot.

In 2001     Work with school districts to develop criteria/tools for procurement of products that will improve
            indoor environmental quality; identify two high priority product categories and set health-based
            product criteria for use in pilot school districts.
In 2000     In FY2000, EPA entered into an agreement with one school district in Mass, to improve indoor
            environmental quality and set health-based pioduct criteria. This district is piloting a project to
            develop procurement specifications and implement a pilot "Buy Clean" program for two product
            categories.
Performance Measures:
Agreement reached with school district on
purchasing criteria for two product categories.
FY 1999
Actuals
FY 2000
Actuals
            1
FY2001
Estimate
FY 2002
Request
                        2

                        8
                        Agreements

                        Pilot Programs
Pilot programs with actual schools

Baseline:    Baseline is under development as part of the project.

Safer Alternative Cleaning Technologies

In 2002     Expand P2 practices in the garment  care industries by achieving a reduction  in the use of
            perchloroethylene by the dry-cleaning industry from the 1997 levels.

In 2001     Expand P2 practices  in the  garment care  industry by  achieving reduction in the use of
            perchloroethylene by the dry cleaning industry from 1997 levels.

In 2000     Supporting expanded P2 practices in a the garment and textile care industry , data for Jan.-Oct.
            2000 indicates 348 wetcleaning machine sales. This is 36% over the 1998 base year. Projections
            based on the prior eight months were used for Nov. and Dec.

In 1999     Overall, the DfE program has formed partnerships with industry to reduce million of pounds of
            hazardous chemicals, reduce worker exposure, increase awareness of safer practices, and develop
            environmentally preferred products. Dry cleaners reduced perc use by 11 million pounds  in 1998.
Performance Measures:
FY 1999
Actuals
Percentage increase in the use of alternative
cleaning technologies by garment care industry  10%

Perchloroethylene reduction
FY 2000
Actuals
            36%
FY2001
Estimate
FY2002
Request
                        30%
                        38%
                        Use-cumulative

                        Use Reduction (cum)
                                                    IV-68

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Baseline:    In 1997,83 million pounds perchloroethylene (perc) used; in 1998,72 million pounds of perc used;
            in 1999,63 million pounds of perc used.

Cleaner Products/Technologies

In 2002     Expand the use of cleaner technologies in priority industries.

In 2001     Achieve a 5% increase in use of cleaner flexographic ink technologies and cleaner (water or non-solvent-based)
            adhesives or bonding techniques in foam furniture products. Expand the use of cleaner technologies in priority
            industries.

In 2000     The technical assessment of traditional and alternative ink formulations was delayed though
            completed in FY2000.  Outreach activities began only after the assessment was complete. We
            expect to see the results of this work in FY 2001.
Performance Measures:
FY 1999
Actuals
For inks, track size of flexographic ink industry
and market share ($ and Ibs) of cleaner inks.

For adhesives, track size of cleaner
adhesive industry market share.

For eco-friendly detergents, track the number
of laundry detergent formulator
industry partners.

Regional project to expand the use
of cleaner technologies
FY 2000
Actuals
            0%
FY2001
Estimate
            10%
                        5%
FY 2002
Request
            15% (cum)  Market share


            10% (cum)  Market Share
                                    15
                                    15
                                    Partners (cum)
                                    Projects
Baseline:    Eco-friendly detergents baseline is 1997: 0 partners, 0 detergents  Adhesives baseline is 1997 —
            measure is increase in market share from baseline. Baseline for flexographic inks measure is 1998.

Pollution Prevention Outreach Efforts

In 2002     Broaden outreach efforts on P2 methods to colleges, universities and tribal schools, sponsoring
            college training network and modifying curricula to better reflect tribal values

In 2001     Broaden outreach efforts on P2 methods to colleges, universities and tribal schools, sponsoring
            college training network and modifying curricula to better reflect tribal values

In 2000     As a result of the change in priorities and tighter resources, the P2/DfE program has shifted to
            creating on-line/web-based materials.  This strategy is farther reaching and more cost effective in
            responding to the continued need to make this information available.
Performance Measures:
Number of P2/DfE curricula (comm. coll. and
tribal) instructor workshops and training
modules developed
FY1999
Actuals
FY2000
Actuals
FY2001
Estimate
FY 2002
Request
            4

        IV-69
                                    Ed. Tools

-------
Adoption of Green curriculum by chemical
engineering departments.                                            25          50         Department Cum.

Baseline:    Baseline is number of workshops and curricula developed from start of project in 2000 and 16
            chemical engineering departments attended workshops in 1999.

Municipal Solid Waste Source Reduction

In 2002      Divert an additional 1 % (for a cumulative total of 31 % or 69 million tons) of municipal solid waste
            from land filling and combustion, and maintain per capita generation of RCRA municipal solid
            waste at 4.3 pounds per day.

In 2001      Divert an additional 1 % (for a cumulative total of 30% or 67 million tons) of municipal solid waste
            from land filling and combustion, and maintain per capita generation of RCRA municipal solid
            waste at 4.3 pounds per day.

In 2000      FY 2000 data is not available for the diversion of municipal solid waste from land filling and
            combustion (goal was an additional  1%) or maintaining per capita generation of RCRA municipal
            solid waste to 4.3 pounds per day. Analysis of FY 1999 data is anticipated by September 2001.

In 1999      Data Unavailable

Performance Measures:                       FY 1999    FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Millions of tons of municipal solid
waste diverted. (NA=Not available)            NA         NA         67          69         million tons

Daily per capita generation of
municipal solid waste.                        NA         NA         4.3          4.3         Ibs. MSW

Baseline:    1990 levels established at 17% of MSW diverted and 4.3 pounds MSW per capita daily generation.

Green Chemistry Challenge Awards

In 2002      Continue to stimulate development  of new safe ("green") chemicals and safe chemical processes
            through public recognition for outstanding achievements in this field.

In 2001      Continue to stimulate development  of new safe ("green") chemicals and safe chemical processes
            through public recognition for outstanding achievements in this field.

In 2000      EPA exceeded its target of 50 Green Chemistry Challenge Award nominations.

In 1999      EPA received 136 nominations in five categories, more than two and a half times its target. The
            efforts upon which these nominations were based produced reductions in use and emissions of
            hazardous  substances, savings in capital investments, reduced worker exposure, and improved
            product yields.

Performance Measures:                       FY 1999     FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Green Chemistry Challenge Award            134         74                                Applications

                                                  IV-70

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Alternative feed stocks, processes, or safer
products identified through Green
Chemistry Challenge Award                                          50          110

Baseline:    Baseline is zero in FY 2000.

Managing PBT Chemicals

In 2002     Initiate further actions pursuant to PBT Strategy and Level I PBT National Action Plans including
            a plan to address unique environmental health threats to Tribes and special populations.

In 2001     Initiate further actions pursuant to PBT Strategy and Level I PBT National Action Plans including
            a plan to address unique environmental health threats to Tribes and special populations.

In 2000     Review of available information during examination of potential Level II PBT chemicals led to a
            broader list than originally expected.

In 1999     EPA published a draft agency-wide PBT Strategy and draft Mercury Action Plan. EPA initiated
            ten new projects with primary focus on reducing mercury use and emissions. EPA also completed
            seven draft national action plans, which address 11 of the remaining priority PBTs.
                                                                               Prod/proc (cum)
Performance Measures:
initiate risk reduction actions in accordance
with National Action Plan

Integrate level II chemicals into
National Action Plans.

Number of prevention and reduction
projects initiated at HQ and in the Regions

Publish final list of additional
priority PBTs.

Hospital Mercury Project

Number of New Multiple-PBT
Strategies Completed
                                FY1999     FY2000     FY2001    FY2002
                                Actuals      Actuals      Estimate    Request
                                11
                                            19
                                            12
25
35
                                                                   200
Chemicals


Chemicals


Projects (Cum)


List

Participants


Strategies
Baseline:    For PBT risk reduction projects, the baseline is zero projects in FY 1999. The baseline for hospital
            mercury project is under development in FY 2001. The baseline for number of new muldple-PBT
            strategies completed is zero in 2001.

Reducing PBTs in Hazardous Waste Streams

In 2002
In 2001
Reduce persistent, bioaccumulative and toxic chemicals in hazardous waste streams by expanding
the use of state and industry partnerships and Regional pilots.

Reduce persistent, bioaccumulative and toxic chemicals in hazardous waste streams by expanding
the use of State and industry partnerships and Regional pilots.
                                                   IV-71

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in 2000    Goal not met. Due to an increase in scope of voluntary chemicals the final list on RCRA persistent,
          bio-accumulative and toxic (PBT) chemicals was not issued. EPA anticipates that the expanded
          list will be issued by September 2001.

In 1999    The schedule for finalizing the PBT List was delayed due to changes in the scope of effort. Based
          on public comments, EPA decided  to expand the list to include other multi-media data.The
          schedule has been extended to include peer review of underlying data.  EPA anticipates final
          publication in 2/00.
                                      FY 1999
                                      Actuals

                                      0
FY2000
Actuals
FY2001
Estimate
FY2002
Request
Performance Measures:


issue final guidance on PBT Identification     0                                         document

 Issue final PBT list.                                 0                              list

Prepare a trends report that shows Toxic
Release Inventory changes from 1991 to 2000.                        1                    report

Prepare a Trends Report that shows Toxic
Release Inventory changes from 1991 to
1999 and report the percent of reductions
of PBTs in hazardous waste streams.                                          1          report

Baseline:    1991 Toxic Release Inventory data will be used to determine reductions.


Verification and Validation of Performance Measures

Performance Measure: reduction of TRI non-recycled wastes

Performance Database: TRIM: Toxic Release Inventory Modernization, formerly TRIS (Toxic Release
Inventory System) - contains aggregate data on source reduction by individual reporting facilities. The
aggregate data are used to provide a measure of national performance.

Data Source: Facilities reporting under TRI, For example, inFY 1998,21,571 facilities filed 72,073 TRI
reports.

QA/QC Procedures: Automated edits and error checks during data preparation by industry respondents;
automated edits, error checks, data scrubs, corrections and normalization by EPA during data entry
Data Quality Review: GAO Report: Toxic Substances: EPA Needs More Reliable Source Reduction
Data and Progress Measures (09/23/94, GAO/ RCED-94-93). Report reviewed  EPA's progress to
implement source reduction reporting requirements, results of voluntary program to reduce emissions of
17 highly toxic chemicals, jnd activities to disseminate source reduction information to meet state and
                                             IV-72

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industry needs. Agency is working on rulemaking to clarify the various types of source reduction activities
under the Pollution Prevention Act.
Data Limitations: TRI release data cover chemicals which are on the TRI list and may be a fraction of
the total releases.  Therefore, TRI data may provide a partial measure of the impact of the Agency's
pollution prevention activity under the Pollution Prevention Act.  (PPA section 6604(b) is a partial
enumeration of EPA activities under the PPA.  TRI releasers are  identified by regulation and are a
narrower category of facilities.)

New/Improved Data or Systems: EPA plans to develop regulations for improving reporting of source
reduction activities by TRI reporting facilities.

Performance Measure:  Millions  of tons of municipal solid waste  diverted; Daily per capita
generation of municipal solid waste

Performance Database:  In the non-hazardous waste program, no national databases are in place or
planned.

Data  Source:  The baseline numbers for municipal solid waste source reduction and recycling  are
developed using a materials flow methodology employing data largely from the Department of Commerce
which can be found in an EPA report titled "Characterization of Municipal Solid Waste in the United
States."

QA/QC  Procedures:  Quality assurance and quality control are provided by the Department of
Commerce's internal procedures and systems. The report prepared by the Agency is then reviewed by a
number of experts for accuracy and soundness.

Data Quality Review:  The report, including the baseline numbers and annual rates of recycling and  per
capita municipal  solid waste generation, is widely accepted among experts.    There are various
assumptions factored into the analysis to develop progress on each measure.

Data Limitations: Non-hazardous waste data limitations stem from the fact that the baseline statistics
and annual rates of recycling and per capita municipal solid waste generation are based on a series of
models, assumptions, and extrapolations and, as such, are not an empirical accounting of municipal solid
waste generated or recycled. The data supporting the municipal solid waste generation and recycling
measures are derived from  generation data collected by the Department of Commerce from various
industries as well as data from industries who use recyclable materials to help determine rates of recycling.
There are various assumptions factored into the analysis to develop progress on each measure.

New/Improved Data or Systems: Since these numbers are widely reported and accepted by experts, no
new efforts to improve the data or the methodology have been identified or are necessary.

Coordination with Other Agencies
                                           IV-73

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       This objective spans a broad range of pollution prevention activities, which can yield reductions
in waste generation in both the public and private sectors. For example, the Environmentally Preferab'
Product initiative, which implements Executive Orders 12873 and 13101, is promoting the use of cleans
products by federal agencies, which may stimulate demand for the development of such products by
industry.

       This effort includes a number of demonstration projects with other federal departments/agencies,
such as the General Services Administration (use of safer products for indoor painting and cleaning),
Department of Defense (use of safer paving materials for parking lots), and Defense Logistics Agency
(safer solvents).  The program also works with the National Institute of Standards and Technology, the
International  Standards Organization, and other groups to  develop standards for Environmental
Management Systems,

       In addition to business, industry and other non-governmental organizations, EPA will work with
Federal, State, Tribal, and local governments to encourage reduced generation of waste as well as the safe
recycling of wastes. Frequently, successful projects require multiple partners to address the multi-media
nature of effective source reduction and recycling programs. The Agency has brought together a range of
stakeholders to examine alternatives in specific industrial sectors, and several regulatory changes have
followed which encourage hazardous waste recycling. Partners in this effort include the Environmental
Council of States, the Tribal Association on Solid Waste and Emergency Response, and the Association
of State and Territorial  Solid Waste Management Officials.

       As Federal partners, EPA and the U.S. Postal Service (USPS) work together on several muriicip?'
solid waste projects. For instance, rather than dispose of returned or unwanted mail, EPA and the USf
developed and implemented successful recycling procedures and markets, including the return of unwanted
mail (advertisements, catalogues, etc.) to the Post Office for recycling rather than disposal by the recipient.
In addition, EPA Regional offices have provided significant assistance to the National Park Service to
implement Integrated Solid Waste Management Plans at parks in western states. EPA also works with the
Small Business Administration to provide support to recycling businesses.

       EPA has worked with the Council on Environmental Quality (CEQ) and the Federal Environmental
Executive (FEE) to reinvigorate Federal leadership for sustainable recycling. In particular, the Agency is
currently engaged with the Department of Defense, Department of Education, USPS, Department of
Energy, the FEE, and other agencies to foster proper management of surplus electronics equipment, with
a preference for reuse and recycling. With these agencies, and in cooperation with the electronics industry,
EPA participated in developing a draft interagency memorandum of understanding (MOU) which will lead
to increased reuse and recycling of an array of computers and other electronics hardware used by civilian
and military agencies. Implementation of this MOU will divert substantial quantities of plastic, glass, lead,
mercury, silver, and other materials from disposal.

Statutory Authorities
                                            IV-74

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Toxic Substances Control Act (TSCA) sections 4 and 6 and TSCA Titles II, III, and IV (15 U.S.C. 2605
and 2641-2692)

Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) sections 3,4, 5, 6, 11, 18, 24, and 25 (7
U.S.C 136a, 136a-l, 136c, 136d, 136i, 136p, 136v, and 136w)

Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)

Clean Air Act (CAA) section 309 (42 U.S.C. 7609)

Clean Water Act (33 U.S.C. 1251-1387)

Emergency Planning and Community Right-to-Know Act (EPCRA) (42 U.S.C. 11001-11050)

Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901-6992k)

Solid Waste Disposal Act as amended by the Hazardous Waste Amendments of 1984.
                                         IV-75

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                               Environmental Protection Agency

              FY 2002 Annual Performance Plan and Congressional Justification

 Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and Ecosystems


Objective #6: Assess Conditions in Indian Country

       By 2005,  EPA will assist all federally recognized tribes in assessing the condition of their
environment, help in building the tribes' capacity to implement environmental management programs, and
ensure that EPA is implementing programs in Indian country where needed to address environmental
issues.
                                     Resource Summary
                                     (Dollars in thousands)
                                         FY1999
                                         Enacted
           FY2000
            Actual
       FY 2001
       Enacted
        FY 2002
        Request
Assess Conditions in Indian Country

    Environmental Program & Management
$52,155.7     $54,432.6      $64,357.7     $64,609.4

 $9,570.4     $10,239.0      $11,888.0     $12,139.7
    State and Tribal Assistance Grants

       Total Wbrkyears
$42,585.3      $44,193.6      $52,469.7     $52,469.7

    80.7          89.4          93.5          92.2
                                        Key Programs
                                     (Dollars in thousands)
                                            FY1999
                                            Enacted
             FY2000
             Enacted
        FY2001
        Enacted
        FY2002
        Request
Tribal General Assistance Grants
Administrative Services
Regional Management
   $42,585.4     $42,628.4    $52,469.7    $52,469.7

      S27.1        $97.0       $167.7       $132.9
       $0.0
$254.1
$281.5
$327.7
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FY 2002 Request

       Under Federal environmental statutes, the Agency has responsibility for assuring human health and
environmental protection in Indian country. Since 1984, EPA policy has been to work with Tribes on a
government-to-government basis  that affirms the vital trust responsibility that EPA has with every
federally-recognized Tribal government. EPA endeavors to address Tribal environmental priorities, ensure
compliance with environmental laws, provide field assistance, assure effective communication with
Tribes, allow flexibility in grant programs, and provide resources for Tribal operations.  Agency-wide
EPA Tribal funding has grown from about $38 million to $218 million in the last decade .

       A lack of comprehensive environmental data severely impacts our ability to properly identify risk
to human health and the environment in Indian country.  Progress toward building Tribal and EPA
infrastructure and completing a documented baseline assessment of environmental conditions by 38% of
Tribes (covering 50% of Indian Country) will enable EPA/Tribes to identify high priority human health
and environmental risks. These assessments will provide a blueprint forplanning future activities through
the development of Tribal/EPA Environmental Agreements (TEAs) or similar Tribal environmental plans
to address and support priority environmental multi-media concerns in Indian country.

       Under the authority of the Indian Environmental General Assistance Program (GAP) Act of 1992,
EPA provides grants to Tribal governments and intertribal consortia for  developing the capacity to
administer multi-media environmental protection programs.  In 2002, EPA is requesting $52.5 million
so that most Tribes will have at least one or two persons working in their community to build a strong,
sustainable environment for the future.  The vital work performed by these key people is to: assess the
status of a Tribe's environmental condition; build an environmental program tailored to Tribe's needs,
develop environmental education programs and solid waste management plans, assist in the building of
Tribal environmental capacity, and alert EPA to serious conditions requiring attention in the near term in
which EPA can work with the Tribe to respond to immediate public health and ecological threats.

       The EPA has strived to work effectively with Indian Tribes since before the promulgation of its
formal Indian Policy in 1984. Vital to that policy are the principles that the Agency has a government-to-
government relationship with Tribes, and that "EPA recognizes Tribes as the primary parties for setting
standards, making environmental policy deci sions and managing programs for reservations, consistent with
agency standards and regulations." To that end,  EPA "encourage[s] and assist[s] Tribes in assuming
regulatory and program management responsibilities," primarily through  its  Treatment in the Same
Manner as a State (TAS) process under several environmental statutes. See, e.g., 33 U.S.C. § 1377 & 42
U.S.C. § 760 l(d).

       EPA's policy has been and will continue to be that Tribes develop the capability to implement
federal programs themselves. However, in working with Tribes, EPA has realized that TAS does not suit
the needs of all Tribes. Some Tribes with pollution sources and other environmental problems may be too
small to support a 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. As a result few Tribes have sought TAS under EPA's various regulatory programs. In the
absence of EPA-approved Tribal programs, EPA generally faces practical challenges in implementing the

                                          IV-77

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federal programs in Indian country. EPA will continue to encourage and work with Tribes to develop their
capability to implement Federal environmental programs.

      In accordance with EPA's longstanding policy, EPA is consideringadditional approaches for how
EPA and Indian Tribes might work together to protect public health and the environment in Indian country.
As part of that effort, EPA is again proposing appropriations language that would provide another tool to
implement its federal programs while removing existing legal and procedural impediments to working
directly  and effectively with Tribal governments. The proposed language would allow EPA to award
cooperative agreements to federally recognized Indian Tribes or Intertribal consortia if authorized by their
tribal members to assist the Administrator in implementing federal environmental programs for Indian
Tribes. These cooperative agreements would be made notwithstanding the Federal Grant and Cooperative
Agreement Act requirements  that  federal agencies use a  contract when the principal purpose of a
transaction is to acquire services for the  direct benefit or use of the United States.   Cooperative
agreements, rather than a contract under the  federal acquisition regulation, are the preferred funding
mechanism, since they better reflect the government-to-government relationship. They would be made
using funds  available to EPA  for direct implementation of federal environmental programs on Indian
lands. These cooperative agreements would not be awarded using funds designated for State financial
assistance agreements.

      The proposed language would promote Tribal participation when EPA is directly implementing
federal environmental programs  in Indian country or  for Tribes.  It would also help Tribes build the
capacity to achieve TAS status if they wish to do so.  While EPA would retain final decision-making
authority and ultimate responsibility for all regulatory activities where EPA directly implements federal
programs, the proposed language would allow for varying degrees of Tribal involvement in assisting EP.
in carrying out the federal program depending upon a Tribe's interest and ability in carrying out specific
work. Some Tribes might perform much of the work for EPA necessary to develop and carry out federal
environmental programs.  Other Tribes might gradually increase their involvement as their capacity to
assist EPA  increases over time.  In this way, the proposed language would improve environmental
protection while also building the capacity and expertise of the Tribes to run their own environmental
programs.
Annual Performance Goals and Performance Measures

Tribal Environmental Baseline/Environmental Priori

In 2002    Baseline environmental information will be collected for 50% of Tribes.

In 2001    Baseline environmental information will be collected by 34% of Tribes (covering 50% of Indian
          Country).

In 2000    16% of tribal baseline information was collected by enabling a pilot demonstration model to access
          and display tribal information from EPA databases  and data collection surveys containing
          environmental information. However, only four EPA/Tribal Environmental Agreements (TEAs)
          were signed.
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In 1999    10% of Tribal environmental baseline information was collected and 46 additional tribes have
          tribal/EPA environmental agreements or identified environmental priorities.

Performance Measures:                    FY1999    FY2000   FY2001    FY2002
                                      Actuals     Actuals    Estimate    Request

Tribal environmental baseline
information collected                      10        16                             % Baseline

Tribes with Tribal/EPA environmental
agreements or identified environmental priorities 46        4                              Tribes

Environmental assessments for
Tribes (cumulative).                                           193       286       Tribes, etc.

Baseline:   There are 572 tribal entities that are eligible for GAP program funding. These entities are the ones
          for which environmental assessments of their lands will be conducted.
Verification and Validation of Performance Measures

Performance  Measure:  Baseline environmental information will be collected for 38% of Tribes
(covering 50% of Indian Country).

Performance Database:   The American Indian Environmental Office (AIEO) is developing a new
information system that will be used to access baseline environmental information.  This information
system will draw together environmental information on Tribes from the existing EPA databases, such as
those from the Office of Water, EPA Regions, as well as databases from other federal agencies. All the
data will be accessed on a per Tribe basis, so environmental information can be queried by Tribe, by state,
by EPA Region, or nationally. Information that is QEO-referenced will be displayed graphically on an
electronic map of tribal reservation boundaries.  The information system will also have a narrative profile
description by Tribe of environmental information and management activities,

Data Source:  The data sources will be existing federal databases that are available nationally, both from
EPA and from other agencies, supplemented by electronic data sources collected from the EPA regions.
These data sources are  all external and will be identified and referenced in our information system
application.

QA/QC Procedures: Quality of the external databases will be described but  not ranked.  A Quality
Management Plan is projected for development as agency-wide guidance is developed.

Data Quality Reviews: Tribes will have the opportunity to review and comment upon their Tribal Profile.
Mechanisms for adjusting data will be supplied.

Data Limitations'. Data limitations appearing in the Tribal profiles are subject to the data quality of the
underlying database systems referenced.
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Coordination with Other Agencies
                                                                                           J\
EPA/BIA Interagency Cooperation on Environmental Compliance

       EPA and the Bureau of Indian Affairs (BIA) are developing a working relationship on matters of
pollution prevention and compliance assistance. For example, EPA is training BIA field staff on how to
conduct their own pollution prevention and environmental compliance audits. EPA is also assisting BIA
in audits of a number of selected BIA facilities that are likely to demonstrate environmental compliance
issues common to many similar BIA facilities.

Solid Waste Interagency Workgroup

       EPA and a large number of Agencies including  the Bureau of Indian Affairs, the Indian Health
Service, the Federal Aviation Administration, the National Oceanic and Atmospheric Administration, and
the Departments of Housing and Urban Development, Agriculture (Forest Service and Rural Utilities
Service), and Defense are working collaboratively to identify, prioritize and close solid waste dumps in
Indian country. The Group is focusing on 146 of the highest priority sites from the Indian Health Service's
1997 Report to Congress, entitled "Open Dumps on Indian Lands," which contains an inventory of 1,162
open dumps in Indian Country. Additional agencies are likely to participate as the workgroup further
defines its goals and strategy.

               rf Interagency Coordination

       Under a two- party Interagency agreement, EPA works extensively with the Indian Health Service
to cooperatively address the drinking water and wastewater infrastructure needs of Indian Tribes. EPA
and the Department of Interior are meeting to develop training for Tribes on the roles and responsibilities
of Natural Resource Damage Trustees under Superfund authorities, with a pilot effort planned for Tribes
in the  OUahoma/Kansas/Missouri mining belt.  EPA  is actively  participating  in the Department of
Defense's Defense Environmental Restoration Task Force. EPA worked closely with the Department of
Energy, Sandia Pueblo and Isleta Pueblo to approve the first temporary unit, on-site cleanup of Resource
Conservation and Recovery Act (RCRA) wastes in Region 6 prior to disposal in an onsite corrective action
management unit. Sandia Lab estimates the on-site treatment and disposal will save $5 million in clean
up costs. EPA Region 1 and the Agency for Toxic Substances Disease Registry (ATSDR) are evaluating
the exposure of mercury to Tribal members in Indian country.  ATSDR is assisting the Tribes and EPA
in developing a Tribal fish consumption survey and looking at existing data (fish tissue analysis and air
data) to determine if testing of human hair, blood, or urine is warranted due to the level of mercury
exposure.
Statutory Authorities

Indian Environmental General Assistance Program (GAP) Act of 1992 as amended (42 U.S.C. 4368b)


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Goal 5: Waste Management

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Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 5: Better Waste Management, Restoration of Contaminated Waste Sites,
        and Emergency Response	...	  V-l
       Control Risks from Contaminated Sites and Respond to Emergencies	  V-12
       Regulate Facilities to Prevent Releases	  V-61

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                             Environmental Protection Agency

              2002 Annual Performance Plan and Congressional Justification

   Better Waste Management, Restoration of Contaminated Waste Sites, and Emergency
                                         Response
Strategic Goal: America's wastes will be stored, treated, and disposed of in ways that prevent harm
to people and to the natural environment.  EPA will work to clean up previously polluted sites,
restore them to uses appropriate for surrounding communities, and respond to and prevent waste-
related or industrial accidents.

                                     Resource Summary
                                    (Dollars in thousands)
                                           FY1999
                                           Enacted
         FY 2000
          Actual
         FY 2001
         Enacted
         FY 2002
         Request
Goal 05 Better Waste Management,           $1,673,339.5   $1,809,956.1   $1,517,539.9  $1,510,758.2
        Restoration of Contaminated Waste
        Sites, and Emergency Response

Obj. 01 Control Risks from Contaminated Sites   $1,524,349.8   $1,654,165.4   $1,352,907.6  $1,347,067.2
        and Respond to Emergencies

Obj. 02 Regulate Facilities to Prevent Releases     $148,989.7     $155,790.7     $164,632.3   $163,691.0
                Total Workyears
4,514.0
4,533.5
4,396.1     4,265.8
•For proper comparison with the FY 2002 request, the historic data lias been converted to be consistent with the new 2000 Strategic Plan structure. Goal and Objective resources
for FY 1999, FY 2000, and FY 2001 may therefore differ from the resources reported in the FY 2001 Annual Plan and Budget and the FY 2000 Annual Report.
Background and Context

       Improper management of wastes can lead to serious health threats due to contamination of
air, soil, and water, and as a result of fires and explosions.  Likewise, improper waste management
and disposal can pose threats to those living in nearby communities and can result in costly cleanups.
One of the Agency's strategic goals is to ensure proper waste management and disposal to protect
human health, endangered wildlife, and vegetation and natural resources from unacceptable risk
posed by solid and hazardous wastes.  In 2002, EPA will continue to promote safe waste storage,
treatment, and disposal, cleanup active and inactive waste disposal sites, and prevent the release of
oil and chemicals, including radioactive waste, into the environment.
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Means and Strategy

       EPA and its partners will continue their efforts to achieve this goal by promoting better waste
management, cleaning up contaminated waste sites, and preventing waste-related or industrial
accidents. To date, EPA and its partners have made significant progress toward achieving its two
primary objectives that address human health and the environment at thousands of Superfund,
Brownfields, Resource Conservation and Recovery Act (RCRA), underground storage tank (UST),
and oil sites.  Brought together by our common interest to protect our health, environment, and
livelihoods•, EPA and its partners have established an effective structure to manage the nation's
hazardous and solid wastes.

       One of the objectives of this goal is to reduce or control the unacceptable risks posed to
human health and the environment through better waste management and restoration of abandoned
waste sites. In partnership with states, tribal governments, the public, and other stakeholders, EPA
will reduce or control the risks to human health and the environment at thousands of Superfund,
Brownfields,  RCRA, and UST sites. EPA's strategy is to apply the fastest, most effective waste
management and cleanup methods available, while involving affected communities in the decision
making process. The Agency will employ enforcement efforts to further assist in reducing risk to
humans from hazardous waste exposure.

       The Agency's Office of Solid  Waste and Emergency Response  (OSWER) recently
established objectives specific to Indian tribes to achieve our strategic goal for better waste
management  in Indian Country and Alaska Native Villages. These objectives stress clean up and
prevention assistance to tribes. In meeting these objectives for the OSWER  programs, EPA will
identify Tribal needs, support and promote the involvement of tribes in implementation activities,
and control risks in Indian  Country through assessment and clean up of contaminated sites in
consultation and partnership with tribes.

       To accomplish its Superfund objectives, EPA works with states, tribes, local governments,
and other federal agencies to protect human health and the environment and to restore sites to uses
appropriate for the nearby communities.  Site assessment is the first step in determining whether a
site meets the criteria for placement on the National Priorities List (NPL)  or for removal action to
prevent, minimize or mitigate significant threats. The Agency also provides outreach and education
to the surrounding communities to improve their direct involvement in every  phase of the cleanup
process and understanding of potential site risk, such as risks posed by radioactive materials.

       One of the Superfund program's major goals is to have responsible parties pay for and
conduct cleanups at abandoned or uncontrolled hazardous waste sites. The Superfund enforcement
program maximizes Potentially Responsible Party (PRP) participation and is committed to reforms,
which increase fairness, reduce transaction costs and promote economic redevelopment. The Agency
also seeks to recover costs associated with a site cleanup from responsible parties when Superfund
trust fund monies have been expended.
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       EPA and  its partners  will support the cleanup  and redevelopment of brownfields
communities. Brownfields are abandoned, idled, or underused industrial and commercial properties
and are not traditional Superfund sites as they are not generally highly contaminated and present
lesser health risks. Economic changes over several decades have left thousands of communities with
these contaminated properties and abandoned sites. The Agency's Brownfields initiative encourages
the redevelopment of these sites by addressing concerns such as environmental liability and cleanup,
infrastructure declines, and changing development priorities.

       A significant number of industrial sites, including Federally-owned facilities, are addressed
by the RCRA corrective action program, administered by EPA and authorized states. These sites
include some of the most  intractable and controversial cleanup  projects in the country.
Approximately 3,500 industrial facilities must undergo a cleanup under the RCRA program. Of these
facilities, EPA and state partners have identified over 1,700 facilities as high priority—where people
or the environment are likely  to be at significant current or potential risk. As evidence of success
in meeting this challenge, 500 out of the 1700 high priority facilities have recently documented that
both exposure to contamination and further migration of contaminated groundwater have been
controlled.    Furthermore, the RCRA corrective action program  continues  to  emphasize
redevelopment of RCRA "Brownfields" sites.

       To accomplish its  leaking  underground storage tanks  (LUST) objectives, the Agency
promotes rapid and  effective responses to releases from underground storage tanks  (USTs)
containing petroleum by enhancing state, local, and tribal enforcement and response capability. The
Agency's highest priorities in the LUST program over the next several years will be to address the
backlog of approximately 160,000 cleanups, and to address LUST sites that are difficult to remediate
because they are contaminated by methyl tertiary butyl ether (MTBE) and other oxygenates. The
LUST program addresses the threat to groundwater from leaking underground storage tanks that
contain petroleum by guiding UST owners  and operators to  take appropriate measures to clean up
releases.  The goal is to promote corrective action in partnership with the states to address these
cleanup challenges,  including those posed by MTBE releases.  Nearly all corrective actions are
undertaken by UST  owners and operators  under the supervision of state or local agencies. The
Agency oversees these activities in Indian Country.

       As part of EPA's efforts to ensure the LUST cleanup goals are achieved, the Agency will also
promote  the  cleanups of USTFields.  USTFields are abandoned or underused industrial and
commercial properties where redevelopment is  complicated by real or perceived environmental
contamination from federally-regulated USTs. USTFields pilots demonstrate what can be done to
bring more petroleum-impacted Brownfields sites back into productive use for ecological, economic,
recreational, or other beneficial purposes.

       The other objective of this goal is to prevent, reduce, and respond to releases, spills, accidents
or emergencies. Through the UST and RCRA permitting and inspection programs, the Agency and
its partners oversee the practices of thousands of facilities. When releases do occur, EPA employees
                                          V-3

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and those of its partners, who are properly trained and properly equipped, will ensure that the
Agency's objective is met by having the capability to successfully respond.

       In partnership with the states, the Agency prevents releases, detects releases early in the event
they occur, and addresses leaks from USTs containing petroleum and hazardous substances.  The
strategy for achieving this goal is to promote  and enforce compliance with the regulatory
requirements aimed at preventing and detecting UST releases, thereby protecting our nation's
groundwater. While the vast majority of the 714,000 active USTs have the proper equipment per
Federal regulation, significant work still remains to ensure UST  owners and operators properly
maintain and operate their systems. The Agency's role is to work with states to promote compliance
with the spill, overfill, and corrosion protection requirements, and ensure that the leak detection
requirements continue to be a national priority.  This encompasses compliance for all federally
regulated UST systems, including those on private and public property, Tribal lands, and Federal
facilities. The Agency has primary responsibility for implementation of the UST program in Indian
Country.

       For facilities that currently  manage hazardous wastes, EPA ensures human health and
environmental protection through the issuance of RCRA hazardous waste permits.  The RCRA
program works with state partners to reduce the risks of exposures to dangerous hazardous wastes
by establishing a "cradle-to-grave" waste management framework. This framework regulates the
handling, transport, treatment, storage, and disposal of hazardous waste, ensuring that communities
are not exposed to hazards through improper management. Hazardous waste management facilities
with appropriate controls in place have made significant progress in minimizing the threat of
exposure to hazardous substances.  To date, 47 states, Guam and the District of Columbia are
authorized to issue permits. State authorization for all portions of the RCRA program, including
regulations that address waste management issues included in permits, is an important Agency goal.
In addition, the Agency has developed a strategy to address solid waste and hazardous waste on
Indian lands. A highlight of this strategy is the interagency project with the Indian Health Service
and the Bureau of Indian Affairs to address issues surrounding open dumps and their cleanup, the
primary waste management concern for tribes.

       The Agency's chemical emergency preparedness and prevention program addresses some of
the risks associated with the manufacture, transportation, storage and use of hazardous chemicals to
prevent and mitigate chemical releases. The program also implements right-to-know initiatives to
inform the public about chemical hazards and encourages actions at the local level to reduce risk.
Section 112(r) of the Clean Air Act requires an estimated 16,000 facilities to develop comprehensive
risk management plans (RMPs) and submit them to EPA, state agencies, and  Local Emergency
Planning Committees.  The Agency believes that  states are  best suited to implement the RMP
program because they benefit directly from its success and they often have established relationships
with the communities that may be at risk.

       The  oil spill program prevents, prepares for, and responds to oil spills mandated and
authorized in the Clean Water Act and Oil Pollution Act of  1990. EPA utilizes its appropriated
                                          V-4

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dollars to protect inland waterways through oil spill prevention, preparedness, and enforcement
compliance. There are 450,000 non-transportation-related oil storage facilities that EPA regulates.
When necessary, the Agency undertakes oil spill response which is funded through a reimbursable
agreement with the U.S. Coast Guard.

       Research

       The FY 2002 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 Liability Act (CERCLA), commonly known as  Superfund.  The research
program will: 1) provide improved methods and dose-response models for estimating risks from
complex mixtures contaminating soils and groundwater; 2) provide  improved methods for
measuring, monitoring, and characterizing complex waste sites in terms of .soils and groundwater;
and 3) develop more reliable technologies for cleanup of contaminated soils and groundwater. The
Superfund Innovative Technology Program (SITE) fosters the development, use, and acceptance of
lower cost characterization and cleanup technologies. In FY 2002, EPA will deliver the annual SITE
report to Congress, which provides program/project status and cost savings information.

       EPA regulates waste identification, waste management, and combustion under the Resource
Conservation and Recovery Act (RCRA).  These programs  constitute the three major areas of
research under RCRA in FY 2002 as the Agency works towards preventing releases through proper
facility  management.   Waste identification research will  focus on multimedia, multi-pathway
exposure modeling and environmental fate and transport-physical estimation in support of risk-based
exemption levels for wastes; development of targeted exemptions of waste streams that do not pose
unacceptable risks; and efforts to streamline the waste delisting process. These risk-based efforts
could significantly reduce compliance costs while maintaining EPA's goal to protect human health
and the environment. Waste management research will focus on developing 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 releases of metals from
waste combustion.

Strategic Objectives and FY2002 Annual Performance Goals

Objective 01: Control Risks from Contaminated Sites and Respond to Emergencies

       172 (for a cumulative total of 986 or 5 7%) of high priority RCRA facilities will have human
       exposures controlled and 172 (for a cumulative total of 909 or 53%) of high priority RCRA
       facilities will have groundwater releases controlled.

•      EPA  and its partners will complete 23,000 Leaking Underground Storage Tank (LUST)
       cleanups for a cumulative total of approximately 294,000 cleanups since 1987.
                                         V-5

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•      EPA will provide additional site assessment funding to 38 new communities, and to 38
       existing communities, resulting in a cumulative total of 2,750 properties assessed, the
       generation of 14,000 jobs, and the leveraging of $3,4 billion in cleanup and redevelopment
       funds since 1995.

•      EPA and its partners will complete 65 Superfund cleanups (construction completions) to
       achieve the overall goal of 897 construction completions by the end of 2002.

•      Ensure trust fund stewardship by getting PRPs to initiate or fund the work and recover costs
       from PRPs when EPA expends trust fund monies.  Address cost recovery at all NPL and
       non-NPL sites with a statute of limitations (SOL) on total past costs equal to or greater than
       $200,000.

•      Maximize all aspects of PRP particicipation which includes maintaining PRP work at 70%
       of the new remedial construction starts at non-Federal Facility Superfund, and emphasize
       fairness in the settlement process.

•      Continue to  make formerly contaminated parcels  of land available  for residential,
       commercial, and industrial reuse by addressing liability concerns through the issuance of
       comfort letters and Prospective Purchaser Agreements (PPAs).

•      Provide at least 6 innovative approaches that reduce human health and ecosystem exposures
       from DNAPLs and MTBE hi soils and groundwater, and from oil and persistent organics in
       aquatic systems.

•      Within 18 months after final listing on the NPL, EPA will make a  final offer for an
       interagency agreement (TAG) that is consistent with Agency policy and guidance at 100% of
       Federal facility Superfund sites.

Objective 02:  Regulate Facilities to Prevent Releases

•      82 additional hazardous waste management facilities will have approved controls hi place
       to prevent dangerous releases to air, soil, and groundwater,  for a total of 71% of 2,750
       facilities.

*      EPA and its  state and tribal partners will achieve  levels of 75% UST compliance with
       EPA/State leak  detection requirements;  and  96% of UST compliance with EPA/State
       December 22,1998 requirements to upgrade, close or replace substandard tanks.   (EPA is
       hi the process of changing the way it measures compliance, including changing from a per
       tank, to a per facility basis.)
                                         V-6

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•      Certify that 6,000 55 gallon drums of radioactive waste (containing approximately 18,000
       curies) shipped by DOE to the Waste Isolation Pilot Plant are permanently disposed of safely
       and according to EPA standards.

Highlights

       In 2002, EPA and state cleanup actions will protect human health by reducing the effects of
uncontrolled releases on local populations and sensitive environments.  The Agency will build on
past successes in cleaning up sites. The following accomplishments provide examples of what has
been done by the Agency to achieve its goal:

•      cleaned up 757 Superfund National Priorities List Sites through FY 2000;
•      completed over 6,200 Superfund removal response actions from 1982 through FY 2000;
•      secured PRP commitments, over the life of the Superfund program, with an estimated value
       of over $18 billion (over $14.9 billion in response settlements and more than $3.1 billion in
       cost recovery settlements);
•      resolved potential liability of 22,800 small volume waste contributing parties through 460
       deminimis settlements;.
•      responded to an average of 70 oil spills and monitored 13 0 oil spill cleanups in a typical year;
•      signed more  than 360 agreements for brownfields assessment pilots, over 100 agreements
       for brownfields cleanup revolving loan fund, and 37 for job training through 2000;
•      504 of approximately 1,700 high priority RCRA sites targeted for aggressive risk reduction
       have met GPRA Environmental Indicator goals;
•      65% of approximately 2,750  hazardous waste management facilities have controls in place;
•      86% of USTs are in compliance with the  1998 deadline requirements;
•      Cleaned up 250,000 leaking underground storage tanks since 1987;
       Funded 10 USTFields pilots.

       In 2002, EPA will complete construction at 65 private and Federal Superfund sites for a
cumulative total of 897.  The Agency will also take action to address contamination at 285  sites
using removal authorities. The Superfund enforcement program will also obtain PRP commitments
to initiate work at 70% of construction starts at non-Federal facility sites on the NPL and to conduct
or fund removals.

       In 2002, the Superfund redevelopment  initiative will facilitate the return of additional
Superfund sites to productive reuse. The Agency has compiled a list of over 190 Superfund sites that
have been recycled. At these sites, more than 13,000 acres are now in ecological or recreational use.
Approximately 14,500 jobs, representing more than $450 million in annual income are located at
sites that have been recycled for commercial use.

       The Agency is working to improve its response capability, workforce safety, and coordination
with our Federal and local partners to support the national effort of responding to a terrorist event.
                                          V-7

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Terrorist threats could include biological, chemical and radiological attacks on populations in the
United States.

       The Brownfields Initiative coordinates Federal and State efforts to address environmental site
assessment and cleanup. EPA's Brownfields program has experienced a growth in applications for
new and supplemental pilots, averaging 198 applications per year. In 2002, half of the $5 million
new investment in brownfields will be used to award additional assessment demonstration pilots
with the funds going directly to states, tribes, and  local governments. The Agency will provide
funding and technical support to 3 8 new assessment demonstration pilots and 3 8 existing assessment
demonstration pilots. These pilots provide states (including U.S. territories), political subdivisions
(including cities, towns, and counties), and federally recognized tribes with useful information and
new strategies  for promoting a unified approach  to  environmental  site  assessment  and
characterization, and redevelopment. In addition, the Agency and its Federal partners will continue
to support the existing 28 showcase community pilots which serve as models to demonstrate the
benefits of interagency cooperative efforts in addressing environmental and economic issues related
to brownfields.  The showcase communities capitalize on a multi-agency partnership designed to
provide a wide range of support depending on the particular needs of each community. In addition,
the President's budget proposes that the Brownfields tax incentive be made permanent.

       The Agency will also provide funding to states for activities that are part of brownfields site
assessment pilots. These activities include facilitating communication among brownfields pilots and
with state environmental authorities.  In addition, the Agency will provide funding for the
development or enhancement of state voluntary cleanup programs.  The 2002 request for the
Brownfields program will increase funding to the states for voluntary cleanup programs and targeted
brownfields assessments.

       To further enhance communities' capacities to respond to Brownfields redevelopment, the
Agency will award brownfields cleanup revolving loan funds (BCRLF) pilots to 29 communities.
All communities  with brownfields  properties are eligible  to  apply.   EPA offers  grants to
governmental entities which may discount loans to nonprofit or other government entities. In
addition, EPA will award 10 job training pilots for community residents and will provide $3,000,000
to the National  Institute of Environmental Health  Sciences to supplement its minority worker
training programs that focus on brownfields workforce development activities. In addition, EPA will
continue to explore connections between RCRA low-priority corrective action efforts and cleanup
of brownfields properties.

       In 2002, 172 additional high priority RCRA facilities  will have current human  exposures
under control and 172 additional high priority RCRA facilities will have migration of contaminated
groundwater under control. To accomplish its RCRA objectives, the Agency has improved the  pace
of cleanups through administrative reforms announced in 1999 and 2001. The  1999 reforms
successfully established an environment for program implenienters to be innovative and results-
oriented. To reinforce and build upon the 1999 reforms, the Agency announced a second round of
administrative reforms  in 2001 with the theme  of "fostering creative solutions." The Agency
                                          V-8

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developed these reforms, with input from states, industry and environmental organizations, to
accomplish the following objectives: pilot innovative approaches, accelerate the changing culture,
connect communities to cleanups, and capitalize on redevelopment potential. As evidence of the
success of the reform effort thus far, EPA recently announced that 500 high-priority facilities had
met both GPRA goals.

       In 2002, the RCRA hazardous waste permits program will have permits or other approved
controls in place for 82 additional RCRA hazardous waste management facilities for a cumulative
total of 71 percent of the universe (2,750 facilities). These efforts minimize the threat of exposure
to hazardous substances because the RCRA program's comprehensive framework regulates  the
handling, transport, treatment, storage, and disposal of hazardous waste.

       The Agency has  several efforts underway to reform the RCRA program so that it better
reflects actual levels of risk. The hazardous waste identification rule and follow-up efforts seek to
exclude lower risk wastes from hazardous waste regulation. In 2002, the Agency plans to develop
exemptions for  specific low-concern wastes as well as concentration-based exemption levels for
constituents occurring in hazardous wastes. The Agency is working to improve test methods under
its toxic constituent leaching procedure to better evaluate waste leaching potential for assessing
whether a waste should be classified as hazardous and the effectiveness of treatment.

 :      As the maximum achievable control technology (MACT) standards for hazardous waste
incinerators and kilns are implemented, emissions of dioxins, furans, toxic metals, acid gases and
particulate matter from these sources will be reduced. These efforts are intended to further reduce
the indirect exposure to hazardous constituents in emissions, especially to children. Implementation
efforts accelerate in 2001 and focus on the transition from RCRA to Clean Air Act (CAA)/ MACT
air emissions permitting and tracking of facility progress. In 2000, the Agency initiated work on
Phase II MACT standards for hazardous waste burning boilers and halogen acid furnaces. The
Agency plans to propose the Phase II rule in 2002 to address emissions of dioxins, furans, toxic
metals, and particulate matter.

       In 2002, the Agency will work with states and industry to complete voluntary guidelines for
industrial non-hazardous waste management and will begin implementation.  These voluntary
guidelines address a range  of issues  including groundwater contamination, air emissions, and
alternatives to waste disposal.

       Based on EPA's minimum national standards for municipal solid waste (MSW), states
regulate landfill practices. The Agency has worked with states to review the national standards and
is initiating regulatory revisions to provide additional flexibility so that compliance is less costly and
easier to achieve.

       In FY 2002, the Agency's LUST program will create and foster improved Federal, State and
local partnership efforts to assess, cleanup, and help coordinate the redevelopment of USTField tank
sites.  The Agency will work with states to increase the pace at which LUST cleanups are initiated
                                          V-9

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and completed, especially in respect to MTBE releases. The Agency's goal is to ensure that 23,000
LUSTs are cleaned up in conjunction with our State, local, and Tribal partners.

       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
implement the risk management plan (RMP) program. EPA has made steady progress in this area
and, in 2002, it will delegate the program to two additional states for a cumulative total of seventeen.
To reach this goal, EPA will provide technical assistance grants, technical support, outreach, and
training to state and local emergency planning committees. Through these activities, states, local
communities and individuals will be better prepared to prevent and prepare for chemical accidents.

       Oil spills pose risks to human health and the environment. The Federal oil spill program
prevents, responds to and  monitors oil spills that occur in the waters of the United States and
adjoining shorelines. Over 24,000 spills are reported annually, about half of these in the inland zone
which is EPA's jurisdiction.  EPA responds to approximately  70 significant spills a  year and
monitors the work of others at approximately 130 additional spills a year. To reduce the risk of
hazardous exposure to people and the environment, the  Agency aims to prevent oil spills from
occurring, prepare for oil spills that do occur, and respond to spills when necessary.

       Research

       In FY 2002, contaminated sites research will be conducted to:  1) reduce uncertainties
associated with soil/groundwater sampling and analysis and to reduce the time and cost associated
with site characterization and site remediation activities; 2) evaluate the magnitude of the risks posed
by contaminants to human health and the ecosystem,  the  contributions of multiple  exposure
pathways, the bioavailability of adsorbed contaminants and treatment residuals and the toxicological
properties of contaminant mixtures; and 3) develop and demonstrate more effective and less  costly
remediation technologies involving complex sites and hard-to-treat wastes.

       Waste Management research will support the Hazardous Waste Identification Rule (HWIR)
and the study of improved ways to minimize waste releases and impacts. In FY 2002, research will
focus on reducing the uncertainty associated with exposure assessment model predictions by
providing improved data and models for quantifying pollutant interactions in a variety of natural
systems. In addition, EPA plans to develop additional targeted exemptions from the hazardous waste
mixture and derived from rules, as part of its efforts to better estimate risk and regulatory standards.
The research also provides  consultation on sampling and sample design related to compliance with
proposed exit levels (levels below which a waste is excluded from regulation) in support  of the
HWIR.   In FY 2002, EPA plans to  update the HWIR99 modeling methodology for delisting
hazardous wastes.  Additionally, waste management research will be conducted to improve the
management of both solid and hazardous wastes. This includes development and/or evaluation of
more cost-effective waste treatment, containment,  and recycling processes, along with technical
guidance on their design and implementation.
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External Factors

       There are a number of external factors that could substantially impact the Agency's ability
to achieve the outlined objectives under this goal.  These include reliance on private party response
and state partnerships, development of new environmental technology,  work by other federal
agencies, and statutory barriers.

       The Agency's ability to achieve its goals for Superfund construction completion is partially
dependent upon the performance of cleanup activities by other Federal agencies, such as the
Department of Defense (DOD) and the Department of Energy (DOE). In addition to the construction
completion goal, the Agency must rely on the efforts of DOD and DOE to establish and maintain the
Restoration Advisory Boards (RABs)/Site Specific Advisory Boards (SSABs). RABs and SSABs
provide a forum for stakeholders to offer advice and recommendations On restoration of Federal
Facilities.   There are other EPA goals  that  rely on activities with other entities, such as PRP
negotiations and agreements with states and tribes.

       For the RCRA program, the Agency's ability to achieve its goals in release prevention and
cleanup is heavily dependent on State participation. In most cases, states have received authorization
(hazardous waste management program) or approval (municipal solid waste landfill permit program)
and are primary implementors of these programs. As such, EPA relies on  states to perform many
of the activities needed to achieve these targets. State programs are also primarily responsible for
implementing the usj/ujg-p program.  The  Agency's ability to achieve its goals is dependent on
the strength of State programs and State funding  levels and will therefore continue to work with
states to strengthen their UST/LUST and RCRA programs.

       For the risk management and anti-terrorism programs, the Agency recognizes that accident
prevention and response, as well as preparedness for terrorist incidents, are inherently local activities.
To succeed, the program relies on the commitment and accomplishments of the various stakeholders,
including industry, State and local government,  and other Federal partners. EPA's success will
depend upon the willingness and ability of stakeholders to deliver  on  the commitments  and
obligations in their plans.

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                            Environmental Protection Agency

              2002 Annual Performance Plan and Congressional Justification

   Better Waste Management, Restoration of Contaminated Waste Sites, and Emergency
                                         Response

Objective #1: Control Risks from Contaminated Sites and Respond to Emergencies

       By 2005, EPA and its federal, state, tribal and local partners will reduce or control the risk
to human health and the environment at more than 374,000 contaminated Superrund, RCRA,
Underground Storage Tank (UST) and brownfields sites and have the planning and preparedness
capabilities to respond successfully to all known emergencies to reduce the risk to human health and the
environment.
                                    Resource Summary
                                   (Dollars in thousands)
                                          FY1999
                                          Enacted
              FY2000
              Actual
FY200I
Enacted
FY 2002
Request
Control Risks from Contaminated Sites and
Respond to Emergencies

    Environmental Program & Management
              1
    Science & Technology

    State and Tribal Assistance Grants

    Leaking Underground Storage Tanks

    Oil Spill Response

    Hazardous Substance Superfund

       Total Workyears
$1,524,349.8   $1,654,165.4   $1,352,907.6  $1,347,067.2


   $46,813.0      $55,907.5      $63,891.8     $63,806.0

   $57,397.5      $53,485.8      $50,359.7      $5,825.4

   $24,808.8      $24,818.4      $32,736.4     $32,736.4

   $70,356.8      $70,205,9      $70,322.1     $69,651.5

     $962.0       $1,068.7        $936.8       $907.1

$1,324,011.7   $1,448,679.1   $1,134,660.8  $1,174,140.8

    3,728.2        3,682.5        3,604.2       3,474.9
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                                      Key Programs
                                   (Dollars in thousands)

RCRA Corrective Action
RCRA State Grants
Federal Preparedness
Leaking Underground Storage Tanks
(LUST)Cooperative Agreements
Superfund Remedial Actions
Superfund Removal Actions
Federal Facilities
Assessments
Brownfields
ATSDR Superfund Support
NIEHS Superfund Support
Other Federal Agency Superfund Support
Hazardous Substance Research:Hazardous Substance
Research Centers
Hazardous Substance Research: Superfund
Innovative Technology Evaluation (SITE)
EMPACT
Common Sense Initiative
Civil Enforcement
Compliance Assistance and Centers
FY1999
Enacted
$31,059.9
$24,808.8
$11,307.5
$58,990.0
$585,181.4
$199,216.8
$29,368.2
$87,712.3
, $92,603.2
$76,000.0
$60,000.0
$10,000.0
$4,529.8
$7,695.9
$398.4
$135.6
$72.4
$558.3
FY2000
Enacted
$36,610.5
$24,808.8
$11,028.2
$56,466.8
$499,799.0
$200,860.3
$27,750.6
$83,857.7
$92,215.1
$70,000.0
$60,000.0
$10,000.0
$2,504.7
$7,017.3
$35.5
$0.0
$0.0
$514.1
FY 2001
Enacted
$40,622.3
$32,736.6
$12,859.3
$58,341.3
$492,045.7
$198,638.1
$30,624.6
$82,701.5
$92,608.6
$0.0
$0.0
$10,676.5
$4,527.7
$6,554.0
$0.0
$0.0
$0.0
$517.9
FY 2002
Request
$41,183.2
$32,736.4
$12,963.4
$58,269.3
$492,408.2
$202,618.8
$30,795.2
$77,651.3
$97,420.5
$0.0
$0.0
$10,676.5
$4,606.0
$6,636.9
$0.0
$0.0
$0.0
$512.1
Superfund - Maximize PRP Involvement (including     $87,857.2     $82,009.6
reforms)
$81,473.8     $78,355.7
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                                           FY1999     FY2000     FY2001      FY 2002
                                           Enacted     Enacted     Enacted      Request
Superfund - Cost Recovery

Superfimd - Justice Support

Planning and Resource Management

Rent, Utilities and Security

Administrative Services

Regional Management
$30,580.6    $30,269.1     $29,495.5     $28,121.1

$29,000.0    $28,663.5     $28,437.3     $28,150.0

    $0.0        $0.0        $26.4        $26.4

    $0.0    $45,965.7     $45,147.0     $45,567.6

 $6,144.3    $15,025.3     $20,516.8     $21,459.0

    $0.0     $6,829.2      $8,013.3      $8,544.8
FY 2002 Request

Leaking Underground Storage Tanks

       The leaking underground storage tanks (LUST) program promotes rapid and effective
responses to releases from underground storage tanks (USTs) containing petroleum by enhancing
state, local, and tribal enforcement and response capability.  In FY 2002, the Agency's goal is to
complete 23,000 cleanups under the supervision of EPA and its state, local and tribal partners. The
LUST program addresses the threat to groundwater from leaking underground storage tanks that
contain petroleum by guiding UST owners and operators to take appropriate measures to clean up
releases.  The goal is to promote corrective action in partnership with the states to address these
cleanup challenges, including those posed by MTBE releases.  Nearly all corrective actions are
undertaken by UST owners and operators under the supervision of state or local agencies.  The
Agency oversees these activities in Indian Country.

       As part of EPA's efforts to ensure the LUST cleanup goals are achieved, the Agency will also
promote the cleanup of USTFields.  USTFields are  abandoned or underused industrial and
commercial properties where redevelopment is complicated by real or perceived environmental
contamination from federally-regulated USTs. USTFields pilots demonstrate what can be done to
bring more petroleum-impacted Brownfields sites back into productive use for ecological, economic,
recreational, or other beneficial purposes.

       The Agency's highest priorities in the LUST program over the next several years will be to
address the backlog of approximately 160,000 cleanups and to address LUST sites that are difficult
to remediate because of MTBE and contamination from other oxygenates. To address these LUST
sites and to help states make more efficient use of their resources,  including state funds that
reimburse some UST owners and operators for a portion of their cleanup costs, the Agency will
continue to support cooperative agreements, using funds from the LUST Trust Fund, under which
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states oversee cleanups by UST owners and operators.  In cases where the responsible owner or
operator is unknown, unwilling, or unable to clean up releases, the LUST Trust Fund is able to pay
for this activity.

       To be effective,  remediation technologies continue to advance, especially  to address
recalcitrant contaminants, such as MTBE.  As  substitutes are sought for MTBE,  and  as  the
composition of gasoline changes in response to changing engine performance requirements, states
will face the continuing challenge of training new staff in the new remediation and site investigation
technologies.

       The Agency's LUST program will support state efforts to make cleanups better, cheaper and
faster.  A majority of documented MTBE-contamination incidents are from LUST systems. The
Agency will continue to analyze available data on the magnitude of the MTBE problem and potential
cleanup solutions, and will launch an extensive outreach effort to communicate the most up-to-date
information on this problem. At the same time, the Agency will support work to determine the size
and extent of the MTBE contamination.

       The Agency will provide states and tribes with technical support and incentives to meet
national LUST cleanup targets. Technical support and incentives will include promoting multi-site
cleanup agreements, conducting cleanup pilots to test the benefits of incentive-based cleanups (e.g.,
Pay-For-Performance), and providing other tools which will help states and the tribes achieve faster,
less expensive, and more effective LUST cleanups.

       In FY 2002, the Agency will support the USTFields initiative with funding for USTFields
pilots.  These pilots will demonstrate  what  can be done to bring more petroleum-impacted
Brownfields sites back into productive use for ecological, economic, recreational, or other beneficial
purposes.  Partnerships will be used to assess, cleanup, and coordinate subsequent redevelopment
of these tank sites. A cumulative total of 50 USTFields pilots are planned to be awarded by the end
of FY 2002. These pilots are selected from existing EPA redevelopment projects with possible
petroleum contamination, such as Brownfields pilots and/or showcase communities, and Superfund
or RCRA redevelopment communities, with a priority for USTFields pilots that assess for MTBE
contamination.  Of the estimated 450,000 Brownfields sites in the United States, approximately
100,000 to 200,000 contain abandoned underground storage tanks or are impacted by petroleum
leaks from these tanks. However, petroleum contamination is generally excluded from coverage
under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
and is  not  covered under the Agency's  Brownfields program.  As a result, the cleanup and
subsequent redevelopment of properties containing abandoned underground storage tanks are either
not occurring or are delayed.  States will work closely with their local governments to select pilot
sites according to their individual state priorities.

       The Agency has  primary responsibility for implementing the LUST program in Indian
Country. EPA oversees and conducts site assessments and remediation, and educates owners and
operators about the UST requirements.  Through the end of September 2000, there were 1,121

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confirmed releases, 856 cleanups initiated,  and  approximately 502 cleanups completed.  The
Agency projects that cleaning up all known and yet-to-be-discovered releases in Indian Country will
take several more years.  When owners and operators are unable or unwilling to pay for corrective
action, the Agency may use  funding from the LUST Trust Fund to pay for cleanups.  Non-
demonstration grants will continue to help tribes develop the capability to administer their own
programs.
                       National UST Corrective Action Activity
                    Total corrective action cumulative over time from FY1991 - FY2000
     450000-
      400000 -
    N
    U 350000-
    m
    b
    e 300000-
    r
      250000-—
    *  100000 -|

      50000
                                         95      96
                                          Fiscal Year
                rjCleanups Completed  ^Cleanups Initiated  HConfirmed Releases
Superfund

       The Superfund program addresses contamination from uncontrolled releases at Superfund
hazardous waste sites that threaten human health, the environment, and the economic vitality of
some local communities. Superfund sites with contaminated soils and groundwater occur nationally
in a large number of communities, many of them urban areas, where they are often accessible to
children or present exposure to disadvantaged populations. Once contaminated, groundwater and
soils may be extremely difficult and costly to cleanup. Some sites will require decades to complete.
In 2002, EPA will complete construction at 65 NPL sites for a cumulative total of 897.

       To  protect  human health and  the environment and  address potential  barriers  to
redevelopment, EPA works with states, Indian tribes, and other Federal agencies to:  1) assess sites
and determine whether they meet the criteria for Federal Superfund response actions; 2) prevent,
                                          V-16

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minimize or mitigate significant threats at Superfund sites through removal actions; 3) generate
accurate risk assessment and cost-performance data critical to providing the technical foundation for
decisions made in environmental cleanup programs; 4) complete remedial cleanup construction at
sites listed on the NPL; 5) develop technologies for cost-effective characterization and remediation;
6) enhance the role of states and Indian tribes in the implementation of the Superfund program; 7)
work with the surrounding communities to improve their direct involvement in every phase of the
cleanup process and their understanding of potential site  risk; and 8)  promote reuse and
redevelopment of Superfund sites.

       As of September 2000, EPA had completed all final cleanup plans at over 1,000 Superfund
            Cumulative  Construction  Completions
    O 1000
    eo
    a.
    E
    o
    O
    c
    o
    w
    c
    o
    O
900

800

700
600

500

400

300
200

100
                                                                         897
               1996       1997       1998       1999
                                    Fiscal Year
                                                     2000
                                                             2001 Est
                                                                       2002 Est
NPL sites and undertaken almost 6,200 removals at hazardous waste sites to immediately reduce the
threat to human health and the environment. The Agency also has cleanup construction underway
or completed at 92% of the sites on the final NPL (1,450 sites), including:
•      52% of sites have all cleanup construction completed (757 sites)
       28% of sites have remedial cleanup construction underway (410 sites)
•      13% of sites have had or are undergoing a removal cleanup action (159 sites).
       Additionally, environmental data gathered by EPA through September 2000 shows that
Superfund continues to fulfill its environmental mission and  is reducing the risks to human and
ecological health posed by dangerous chemicals in the air, soil, and water. Since the inception of
the Superfund program, EPA has: 1) provided alternative water supplies to over 498,000 people at
NPL and non-NPL sites to protect them from contaminated ground and surface water; 2) relocated
over 29,000 people at NPL and non-NPL sites  in instances where contamination posed the most
severe immediate threats; 3) cleaned 467 million cubic yards of hazardous solid waste; and, 4)
cleaned 353 billion gallons of hazardous liquid  waste.
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       EPA's efforts to address uncontrolled releases at Superfund sites begin when states, Indian
tribes, citizens, other Federal agencies, or other sources notify EPA of a potential or confirmed
hazardous waste site or incident. EPA confirms this information and places sites requiring Federal
attention in the Agency's comprehensive environmental response, compensation and liability
information system database (in the case of Federal facilities, sites are placed on the Federal facility
hazardous waste docket).  These sites are then assessed to determine whether Federal action is
needed. In most cases, EPA makes a determination that no further Federal action is appropriate.
These sites are removed  from the  inventory and  EPA may refer the site to  State or Tribal
environmental authorities for further attention, if warranted. For those  sites where additional action
is needed to protect public  health and the environment, EPA seeks the course of action best suited
to the individual site.  Sites posing immediate risks may be addressed under removal authority.
Federal action may be delayed or avoided at sites with ongoing State action. In some instances,
potentially responsible parties enter into agreements with EPA to evaluate or cleanup sites prior to
listing on the NPL. In such cases, where cleanup at these sites is progressing  in a timely and
protective manner or is completed prior to final listing, listing on the NPL may  be unnecessary.
Some sites may be addressed under both removal and remedial authorities when, for example, early
removal action is taken to address risks at sites on the NPL. As a  matter of policy, EPA seeks the
governor's concurrence before listing sites on the NPL.

       Removal authority  under CERCLA is used by EPA to prevent, reduce or mitigate threats
posed by releases or potential releases of hazardous substances, pollutants, and  contaminants in
emergency and non-emergency situations at NPL and non-NPL sites. EPA undertakes removal
response actions at: 1) emergency incidents where response is necessary within a matter of hours
(e.g., threats of fire or explosion); 2) time-critical incidents posing public health and environmental
threats; and 3) non-time critical situations at both NPL and non-NPL  sites to promote quicker and
less costly cleanup.  Sites known to pose the greatest potential risk to public health and the
environment receive priority.

       For sites listed on the NPL, remedial work begins with site characterization and feasibility
study to review site conditions and proposals for future land use. This forms the foundation for the
record of decision and remedy selection.  Public involvement is a key component in selecting the
proper remedy at a site. A remedial action is performed upon approval of the remedial design and
represents the actual construction or other work necessary to implement the remedy selected.
Remedial action work is performed by potentially responsible parties or other Federal Agencies, or
by EPA, or states, as Fund-financed actions.

       Although completion of construction is a major milestone in the Superfund program, many
activities occur at a site after this milestone is achieved. These "post-construction" activities include
the following: 1) oversight of operation and maintenance activities performed by the states and PRPs
to ensure cleanup methods workproperly and the site remedy continues to be protective; 2) operation
of fund-financed ground water restoration systems for up to 10 years (long-term response), and
oversight of states and PRPs  operating these systems until cleanup goals are achieved;  3)
implementation of institutional controls and oversight to ensure they remain protective; 4) five-year

                                          V-18

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reviews to assure that remedies remain protective; 5) optimization of ground water remediation
systems to improve performance and/or reduce costs; and 6) site deletion from the NPL.  As more
sites move into post-construction, the Agency is devoting more resources to assure adequate long-
term stewardship,

       EPA is committed to involving citizens in the site cleanup process. Superfund community
relations are based on two-way communication designed to keep citizens informed about site
progress and give them the opportunity to provide input on site decisions. EPA conducts outreach
efforts,  such as holding public meetings, establishing community  advisory groups, providing
communities with financial assistance to hire technical consultants to assist them in understanding
the problems and potential solutions to the contamination problems, and distributing site-specific
fact sheets. EPA strives to create a decision-making process to clean up sites that the communities
feel is open and legitimate,  and improves the community's understanding of potential risk at
hazardous waste sites.

        States and Indian tribes are key partners in the cleanup of Superfund hazardous waste sites.
EPA can authorize the states  or tribes to carry out a fund-financed response. However, states and
tribes more often operate as a support agency. In this role, they are actively involved in site response
activities, but they do not take on a lead role. To support their involvement as a lead or support
agency, EPA provides financial support through cooperative agreements to conduct removal, site
assessment, remedial, and enforcement projects and for core infrastructure activities.

       Under core program  cooperative agreements,  EPA provides non-site-specific  funds  to
develop, maintain and enhance state and tribal capacity to manage and implement CERCLA
responses. EPA currently has core program cooperative agreements with 46 states and 15 tribes.
Activities funded under the core program cooperative agreements include the following: 1) establish
and update procedures for emergency responses and longer-term remediation procedures which
include developing and updating of generic health and safety plans, quality assurance project plans,
and community relations plans; 2) develop/update provisions for satisfying all requirements and
assurances which include fiscal and contract management activities for CERCLA;  3) provide legal
assistance relating to CERCLA, such as document review for legal sufficiency, development and
refinement of the enforcement program, development of legal authorities, and legal assistance for
coordinating applicable or relevant and appropriate requirements (ARAR) identification; and 4) hire
and train staff to manage publicly-funded cleanups.

       In May 1998, EPA released the "Plan to Enhance the Role of States and Tribes in the
Superfund Program."  The  plan was developed so that EPA can share  Superfund  program
responsibilities more fully with interested and capable states and tribes, enabling the cleanup of more
sites. In 1999 and 2000, EPA implemented the plan.  Seventeen pilots were approved with eight
states and nine tribes. In January 2001,  EPA completed the evaluation of the plan and issued a
directive to communicate national expectations for the continued use of the plan to enhance the role
of states and tribes in the Superfund program.
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       Across the country, thousands of Federal facilities are contaminated with hazardous waste,
unexploded ordnance (UXO), radioactive waste, fuels, and a variety of other toxic contaminants.
These facilities include many different types of sites, such as formerly used defense sites, abandoned
mines, nuclear weapons' production plants, military ranges, fuel distribution areas, and landfills.
EPA's Federal Facilities Restoration and Reuse Office (FFRRO) works with the Department of
Defense (DOD), the Department of Energy (DOE), other Federal agencies, states, tribes and the
public to find protective, creative, and cost-effective cleanup solutions, when appropriate, to
encourage restoration and reuse. The Federal facilities program provides technical and regulatory
oversight at Federal facilities on the NPL to ensure protection of human health, effective program
implementation, and meaningful public involvement. The Agency encourages citizen involvement
by working with DOD to establish restoration advisory boards and DOE to establish site specific
advisory boards.

       The Superfund Federal Facilities Response program works with a large number of ongoing
projects: 469 remedial investigations/feasibility studies, 69 remedial designs,  and  216 remedial
actions. In many cases, Federal facilities face unique challenges due to the types of contamination
(e.g., radiation, UXO), the size of the facility (e.g., Hanford is  over 500 square miles), or the
complexities of reuse related to environmental issues (e.g., base closure).

       In an effort to better implement the Agency's Quality Assurance Order  and in response to
recommendations from the EPA  Office of Inspector General,  EPA is enhancing the quality
management activities of its Superfund program office.  This work entails the implementation of a
quality management plan based on an adaptation of the American National Standard "Specifications
and  Guidelines  for  Quality  Systems for Environment  Data Collection  and Environmental
Technology Programs," ANSI/ASQC E-4-1994, that will establish requirements for headquarters.
As part of implementation, training and orientation will be required.  Establishing the quality
management plan will not complete this activity; rather it will initiate a continuing process that is
vital to assure critical environmental cleanup decisions are based on reliable information and are
technically sound.

       EPA has significantly  improved the Superfund program largely as a result of reforms and
reinvention continuously implemented since 1989 (e.g., "enforcement first").  These efforts will
continue in 2002. Over the years, Superfund has amassed many noteworthy achievements.  Key
accomplishments through the end of 2000 include: 1) establishing 66 community advisory groups
at sites across the country; 2) reviewing 51 new site decisions for an estimated savings of over $80
million; 3) saving more than $1.3 billion in future costs from updating over 350  existing remedies;
4) evaluating over 40 planned projects to establish funding priorities based on site risks;  and 5)
archiving over  32,300 CERCLIS sites to help promote  the economic redevelopment of these
properties.  Superfund has successfully integrated many of its reforms into the  program, and they
are continuing to produce positive results.

       The Superfund redevelopment initiative is a coordinated national effort to  facilitate the return
of Superfund sites to productive use. EPA has become increasingly aware of the importance of fully

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exploring future use opportunities at Superfund sites with its partners before  selecting and
implementing a cleanup remedy. This has resulted in Superfund sites, which were once thought to
be unusable, that are now being "recycled" back into productive use.  EPA has compiled a list of
over 190 Superfund sites that have been recycled. At these sites, more than 13,000 acres are now
in ecological or recreational use.  Approximately 14,500 jobs, representing more than $450 million
in annual income, are located at sites that have been recycled for commercial use. EPA believes it
can help to significantly increase the number of sites in productive reuse by focusing its efforts more
on the potential reuse of Superfund sites, and by involving its partners in determining the reasonably
anticipated future uses of sites so that it can select, design and implement cleanups that are consistent
with those uses, while protecting human health and the environment.  Fifty pilot sites have been
awarded, providing  up  to $100,000  in direct financial  assistance and/or services to  local
communities. These pilots will be evaluated to assess their impact on the Superfund Program and
their potential to facilitate site reuse following clean-up.

Federal Preparedness

       EPA supports a highly effective national emergency preparedness and response capability.
Under the National Response Team (NRT)/Regional Response Teams (RRTs) and the Federal
Response Plan (FRP), the Federal government helps states and cities address major incidents that
are beyond their capabilities. EPA chairs the NRT and co-chairs the 13 RRTs throughout the U.S.
which integrates actions of all Federal partners to prevent, prepare for and respond to hazardous
substance and petroleum emergencies.

       In 2002, the NRT agencies will implement and test an incident command/unified command
system to coordinate response management for all levels of government and the private sector during
major incidents.  This will reflect recent changes hi NRT guidance.  In addition, the NRT will
broadcast lessons learned about major incidents and exercises, and emergency response procedures
on the NRT/RRT Internet site.   The NRT will also continue to promote interagency training
programs in crisis management  response, communicate information on new safety and cleanup
technologies, implement mechanisms to coordinate radiological and hazardous materials response,
and provide technical assistance  for incidents occurring outside the United States.

       The FRP provides for the delivery of Federal assistance to states to help them deal with the
consequences of significant disasters.  EPA has the lead responsibility for the plan's Emergency
Support Function covering hazardous materials. An important priority under the FRP is to respond
to and protect public health and the environment from the consequences of terrorist events. Under
the program, EPA participates with other Federal agencies to implement national security and anti-
terrorism requirements. They include the following:

•      Continuity of Operations (COOP) Program. The Presidential Decision Directive (PDD) #67
       requires all  Federal Executive Branch departments and agencies to have in place a viable
       capability to ensure the performance of their essential functions during any emergency or
       situation that may disrupt normal operations.  During 2002, EPA will conduct individual and


                                         V-21

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       team training, testing of alert and notification procedures, and an internal headquarters
       exercise at the designated alternate facility to enhance the operational capabilities of the
       Agency's COOP team. The Agency will also continue to review and refine its COOP plans.

•      Critical Infrastructure Protection.  PDD #63 requires EPA (and other Federal agencies) to
       strengthen Agency and stakeholder defenses against assaults on  critical infrastructures,
       including cyber systems. EPA also has the lead responsibility for coordinating plans and
       activities with the water supply sector. In 2002, EPA and  other Agency partners  will
       concentrate on implementing industry and EPA plans to address the problems, gaps and
       vulnerabilities that were cited in initial program assessments.

•      Anti-terrorism Emergency Preparedness.  As directed under PDDs #39 and #62, EPA
       participates in the crisis and consequence management phases  of terrorist incident response
       special events and exercises.  The Agency will also prevent and prepare for deliberate
       releases and coordinate with other Federal agencies to ensure that anti-terrorism activities
       are integrated with state and local emergency preparedness and response programs and
       organizations (including State Emergency Response Commissions and Local Emergency
       Planning Committees under the National Response System).

       In 2002, EPA's anti-terrorism program will focus on helping stakeholders to prepare for and
respond to nuclear, biological and chemical acts of terrorism.  EPA  will continue efforts toward
ensuring that its on-scene response personnel are trained and equipped to respond to weapons of
mass destruction incidents. EPA will also work with its Federal partners to develop federal, state and
local planning capabilities, as well as help them to understand the interfaces between the PDD
mandates, National Response System and the national Domestic Preparedness Program for terrorist
events.  These activities will be conducted as part of the Federal government's initiative to ensure
that state and local emergency officials are adequately trained.

Radiation Guidance and Support

       In 2002, EPA will provide national level guidance on the risks posed by radioactive materials
in the environment including technical guidance for conducting risk assessments in order to limit
public and environmental exposure to radiation.  EPA will accomplish this by working with the
public, industry, states, tribes and other government agencies to use  information systems and to
inform and educate people about radiation risks and promote actions that reduce human exposure.
EPA in partnership with other Federal agencies, will promote the management of radiation risks in
a consistent safe manner at Superfund site, DOE, DOD, state, local and other Federal sites by:

•      Evaluating human health and environmental risks from radiation site exposure, developing
       models of the environmental transport of radionuclides, and providing a basic understanding
       of the biological effects of radiation.
•      Developing risk assessments, remediation technologies, and measurement and information
       systems.


                                         V-22

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       Providing training and direct site assistance including laboratory, field and risk assessment
       support at sites with actual or suspected radioactive contamination.

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

Superfund Enforcement

       The Superfund enforcement program is critical to the Agency's ability to cleanup the vast
majority of the nation's worst hazardous waste sites. In FY 2002, EPA will continue its successful
emphasis on completing construction at Superfund sites by obtaining commitments for PRPs to
conduct work at new remedial construction starts at  non-Federal facility sites and ensuring
compliance with Federal facility statutes and CERCLA agreements.

       The Superfund enforcement program has  successfully encouraged or compelled PRPs to
undertake or fund approximately 70% of new remedial construction work at non-Federal facility
Superfund sites in recent years. The program focuses on the following efforts: 1) maximizing PRP
participation in conducting or funding response actions while promoting fairness in the enforcement
process; 2) recovering costs from PRPs when EPA expends funds from the Superfund Trust Fund;
and 3) negotiating agreements with Federal facilities for NPL site cleanup. The Superfund program
emphasizes "enforcement first" to ensure that sites for which there are^yiable responsible parties are
cleaned up by those parties. In tandem with this  approach, various Superfund reforms are being
implemented to increase fairness, reduce transaction costs and promote economic redevelopment.
The Agency provides fund to the Department of Justice (DO J) for any interagency agreement (I AG)
to assist EPA Superfund in enforcement efforts. This objective also supports the RCRA corrective
action and regional LUST legal enforcement program.

       The Superfund program and its stakeholders have benefitted from enforcement reforms
implemented in recent years. These reforms include undertaking early, expanded PRP searches and
investigations to enable "enforcement first" to occur and develop sufficient information to make
orphan share determinations; making orphan share offers at all eligible sites; expediting negotiations
to facilitate early de minimis settlements;  settling with parties with limited ability to pay; making
more effective and widespread use of Alternative Dispute Resolution (ADR); issuing administrative
orders to the maximum practicable number of PRPs at a given site; creating site-specific accounts;
and, removing  liability barriers to economic  redevelopment through  prospective purchaser
agreements.

       In FY 2002, the Agency will negotiate remedial design/ remedial action cleanup agreements
at sites and will also achieve removal agreements at hazardous waste sites. Where negotiations fail,
the Agency will take either unilateral enforcement actions to require PRP cleanup or use Trust Fund
                                         V-23

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dollars to remediate sites. When Trust Fund dollars are used to cleanup sites, the program will take
cost recovery actions against PRPs to recover expenditures.

      Institutional controls are a critical component of many response actions selected by EPA to
ensure that property is used and maintained in an appropriate manner after construction of the
selected cleanup is  complete.  The Superfund program  will  oversee the implementation and
enforcement of institutional controls following the completion of construction.  Furthermore,
response work will be undertaken, in accordance with existing agreements or through additional
negotiations, when found to be  necessary through five year reviews.

      EPA will continue its efforts in Federal facilities administrative activities related to CERCL A
§ 120 agreements. CERCL A § 120 requires that for all Federal facility sites on the NPL, an IAG
be signed by all appropriate parties which provide enforceable schedules for the progression of the
entire cleanup.  For Federal facility NPL sites, the signing  of an IAG and oversight of its
implementation ensures a protective cleanup at a timely pace.  EPA will monitor milestones in
existing I AGs, resolve disputes, and oversee all remedial work being conducted by Federal facilities.
EPA will work with affected agencies to resolve outstanding policy issues relating to the cleanup
of Federal facilities. For FY 2002, EPA will make a final offer for an IAG that is consistent with
Agency policy and guidance at 100% of Federal facility Superfund sites within 18 months after final
listing on the NPL.

      In FY 2002, the Superfund cost recovery program will recover monies expended from the
Trust Fund from viable responsible parties. Where settlement negotiations and previous enforcement
actions have failed to achieve PRP response, and Trust Fund dollars are used to cleanup sites, the
program will take cost recovery actions against PRPs to recover expenditures. By pursuing cost
recovery settlements, the program promotes the principle that polluters should pay cleanup costs at
sites where they caused or contributed to the contamination and maximizes the leverage of the Trust
Fund to address future  threats posed by  contaminated sites. Trust Fund expenditures will be
recouped through administrative actions, CERCLA § 107 case referrals and through settlements
reached with the use of alternative dispute resolution.

      The enforcement program's  involvement  in  case referrals  and support include  case
development and preparation, referral and post-filing actions. The program will also provide case
and cost documentation support for the docket of cases currently being worked on by DOJ. The
enforcement program will meet cost  recovery statute of limitation deadlines, resolve cases, and
issue bills for oversight and make collections in a timely manner.
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Other Federal Agencies

       Other Federal agencies contribute to this objective by providing essential services in areas
where EPA does not possess the needed Superfund specialized expertise.  Contributors include the
Department of Interior, the National Oceanic and Atmospheric Administration,  the Federal
Emergency Management Agency, the Occupational Safety and Health Administration, the United
States Coast Guard. Some of the essential services performed by these Federal agencies include the
following: 1) The Department of Interior provides response preparedness and management activities
(assistance on incidents and sites and training on natural resource issues) that support the National
Response System including the National Response Team, Regional Response Teams, OSCs, and
RPMs; provides trustee assistance and damage assessment  capability activities that  increase the
capability of Federal, State and Indian tribe trustees to assess damages for natural resources injured
or lost as a result of hazardous substances releases; and provides scientific support to develop ways
to include natural resource restoration in removal actions and 2) FEMA provides technical assistance
to on-scene coordinators and supports the National Contingency Plan and the National Response
System through preparedness exercises; develops and coordinates training programs for state and
local governments through participation on the National Response Team and Regional Response
Teams; provides financial assistance for hazardous materials training exercises;  and maintains
regional libraries for hazardous material training information.

                       Overview of Other Federal Agency Funding
Agency
DOI
DOJ
FEMA
NOAA
OSHA
USCG
TOTAL
FY2001 Enacted
$997,800
$28,437.3
$1,097,600
$2,444,600
$648,600
$5,487,900
$10,676,500
FY 2002 Pres. Bud
$997,800
$28,150.0
$1,097,600
$2,444,600
$648,600
$5,487,900
$10,676,500
Brownfields

       Brownfields are abandoned, idled, or under-used industrial and commercial properties where
expansion or redevelopment is complicated by real or perceived contamination.  Brownfields
properties are not traditional Superfund sites as they are not generally highly contaminated and
                                         V-25

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present lesser health risks.  However, economic changes over several decades have left numerous
communities  with these contaminated properties and abandoned sites.  In fact, the General
Accounting Office has estimated that over 450,000 brownfields properties exist. Concerns about
environmental liability and cleanup, infrastructure declines, and changing development priorities
have worsened the situation. The primary goal of the EPA Brownfields program is to provide State,
Tribal and local governments with the tools and financial assistance to assess, clean up, and
redevelop brownfields properties. The Agency's FY 2002 request includes an additional $5,000,000
investment in brownfields which provides $2,500,000 for assessment demonstration pilots and
$2,500,000 directly to states and tribes to support the State voluntary cleanup programs. Also, the
President's budget proposes to make the Brownfields tax incentive permanent.

       In response to needs for the assessment and cleanup of brownfields properties, the Agency
implements strategies to bring these properties back into use for the benefit of their communities.
The brownfields economic redevelopment initiative is a comprehensive approach to empower states,
communities,  and  other  stakeholders  interested  in environmental cleanup  and economic
redevelopment to work together to prevent, assess, safely clean up, and sustainably reuse these
properties.

       The Agency provides funding for brownfields site assessment demonstration pilots of up to
$200,000 each. Recently, EPA has made supplemental funding available to a small subset of these
pilots, that have accomplished a high number of assessments, clean ups and redevelopments. These
pilots provide EPA, states, local governments, and federally recognized Indian tribes with useful
information and new strategies for promoting a unified approach to environmental site assessment
and characterization, and redevelopment.  EPA has awarded 363 two year assessment grants to
communities to assist localities in assessing contamination at brownfields sites.  These grants include
supplemental, greenspace and Showcase assessment-related activities. Over 2,500 properties have
had environmental assessments completed under the assessment pilot program since program
inception. In 2002, the Agency will continue to fund brownfields pilots. This assistance is designed
to enhance State, local and tribal governments' capacity to assess and cleanup properties under state
and Federal environmental authorities, and facilitate the redevelopment and reuse of the brownfields
properties. To date, brownfields  pilots have leveraged over 11,000 cleanup, construction and
redevelopment jobs.

       Where appropriate, the Agency provides funding for targeted brownfields assessments in
communities that are not successful in competing for an assessment pilot. Site assessments at non-
pilot brownfields sites are performed either under existing cooperative agreements with states or
through EPA  contractors. This activity enjoys wide support from local communities. This funding
provides preliminary assessments and site investigations using standard methodology established
by the American Society for Testing Materials (ASTM).

       To continue EPA's efforts to provide a pattern of interagency collaboration in addressing
environmental and economic issues in brownfields communities, the Agency and its Federal partners
designated 12 new showcase communities in 2001 for a total of 28 showcase communities. These

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designated brownfields showcase communities are distributed across the country and vary by size,
resources, and community type. The goals of the project are to: promote environmental protection
and restoration, economic development, job creation, community revitalization, and public health
protection through assessment, cleanup and sustainable reuse of brownfields; link Federal, State,
local and non-governmental action supporting community efforts to restore and reuse brownfields;
and develop national models demonstrating the positive results of public and private collaboration
in addressing brownfields challenges.

       The Agency will also award  cooperative agreements to capitalize brownfields cleanup
revolving loan fund pilots (BCRLF) of up to $1,000,000 each. All communities with brownfields
properties are eligible to apply, EPA offers grants to governmental entities which may discount
loans to nonprofit or other government entities. This funding enables eligible entities to develop
cleanup strategies, make loans to prospective purchasers to clean up properties, and encourages
communities to leverage other funds into their revolving loan fund pools. In addition, the Agency
awards brownfields job training and development demonstration pilots at up to $200,000 each over
two years to help residents of brownfields communities take advantage of new jobs created by the
assessment and cleanup of brownfields.

       Funding to support the expansion, enhancement and development of State voluntary cleanup
programs (VCPs) will be a priority in the Agency's attempt to reuse and redevelop brownfields
properties.   EPA provides both monetary and technical/legal assistance to states and tribes
developing and enhancing VCPs. VCPs address contaminated sites which do not require Federal
action, but need cleanup before the sites are considered for reuse. EPA believes that building strong
and effective State and Tribal programs, such as VCPs, will also complement efforts to address the
cleanup of brownfields properties. To date, EPA has signed 16 memoranda of agreement that clarify
the oversight  of brownfields cleanups will be the responsibility of the states with programs which
meet the six criteria established in the November 1996 voluntary cleanup guidance.

       Over  the past five years, states, territories, and tribes have received $85,000,000 for
assessment demonstration and BCRLF pilots, voluntary cleanup programs and targeted brownfields
assessments.

       The Agency will facilitate the reuse of Brownfields properties through the application of
transportation/land use/air quality models in cities around the country that show the air quality
benefits of Brownfields redevelopment and infill.  EPA will work with city mayors and states to
make Brownfields redevelopment and infill a National Ambient Air Quality Standards attainment
strategy under the State Air Quality Implementation Plans.

Base Realignment and Base Closure

       Since 1993, EPA's Superfund Base Realignment and Base  Closure (BRAC) program 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

                                         V-27

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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 497 BRAC installations, 205 require environmental
restoration. One hundred and eight (108) of the installations requiring environmental restoration
have been designated as Fast-Track installations.

       The Fast-Track program strives to make parcels available for reuse as quickly as possible,
by either transfer of uncontaminated or remediated parcels, or lease of contaminated parcels where
cleanup is underway or "early transfer" of contaminated property is undergoing cleanup. A major
success for the Fast-Track program has been the formation of the base cleanup teams (BCTs) at the
Fast-Track designated installations. The teams, which include EPA, DOD, and State environmental
experts, engineer commonsense approaches to cleanups by developing common goals and priorities.
The Agency empowers the team members to make decisions to expedite the process of accelerating
cleanup while integrating base reuse priorities. To further assist with Fast-Track cleanups, EPA
engages in public participation by working with  DOD to establish restoration advisory boards
(RABs) at military installations,  RABs foster teamwork by bringing members of the community
together with military officials and government regulators to discuss cleanup issues.

       Through cleanup partnerships, DOD, EPA, and the states have saved the program an
estimated 296 project years and more than $277 million in potential costs through 1999. The 205
BRAC installations undergoing environmental restoration have collectively transferred 403,593
acres of property from DOD to non-military entities. Approximately 96 percent of this property
(389,741 acres) belongs to the 108 installations under the BRAC Fast-Track cleanup program. More
than 34 percent of the BRAC Fast-Track property (133,372 acres) have been transferred or leased.

                         Status of DoD's Property Transfer
                   under the BRAC Fast-Track Cleanup Program
                              (End of FY 1999 Report)
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Resource Conservation and Recovery

       For decades, many industrial facilities in this country mismanaged their hazardous wastes.
Some of the facilities - particularly those that have been abandoned or closed - are being addressed
under the  Superfund program. A significantly larger number, however, fall under the Resource
Conservation and Recovery Act (RCRA) corrective action program that is administered by EPA and
the authorized states. Currently, thirty-eight states and territories are authorized to implement the
corrective action program.  These include some of the most intractable and controversial cleanup
projects in the country. Approximately 3,500 industrial facilities must undergo a cleanup under the
RCRA program. Out of these facilities, the Agency has targeted over 1,700 facilities as high priority
—where people or the environment is likely to be at significant current or potential risk. The Agency
is pursuing a strategy for addressing the worst facilities first, as reflected in the Agency's annual
performance goal. This focus on near- term actions which will mitigate actual or imminent human
exposure problems and stop further spread of contaminants in the environment has resulted in 504
of the 1,700 target facilities achieving their environmental indicator goals.

       Over the past several years, the Agency has emphasized streamlining the corrective action
program and improving overall implementation. In 2002, those efforts will be further advanced by
implementation of a second round of RCRA reforms, launched in 20 01. The reforms were developed
from issues,  ideas and information presented at a series of meetings the Agency held with various
stakeholders in  2000.  Participants in these meetings  included  program implementors and
stakeholders, including representatives from tribes, Federal and state agencies,  regulated industry
and environmental and community groups. Topics discussed included innovative and successful
approaches to corrective action, current barriers and ways to improve communication.
      250
                                                           § Acres Planned lor Transfer
                                                           ~ Actual Acres Transferred
                                                           • Actual Acres Leased
                   Federal
Non-Federal
                                          V-29

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        The initiative is designed to encourage cleanups, reduce impediments to cleanup actions,
 enhance state and stakeholderinvolvement, and promote the reuse of RCRA facilities; its goal is to
. accelerate the pace of the program. To support the reforms, the regions will make strong and
 aggressive implementation efforts and encourage their states to do the same. During the first round
 of reforms, the regions began discussions with states and the regulated community to ensure they
 adopted the new approaches to the fullest extent possible at RCRA clean-up sites.

        In 2002, the Agency and states will be implementing the 2001 Reforms, which will showcase
 innovative approaches through a new pilot program.  Specifically, the reforms will focus on
 accelerating corrective  actions, strengthening communities' connections  to  clean-ups,  and
 capitalizing on redevelopment potential. These reforms include a new round of RCRA Brownfields
 projects. Currently four RCRA Brownfields projects are underway in four regions, and an additional
 8 pilot project applications have been submitted to EPA through or by the regional offices.
      RCRA Corrective Action Environmental Indicator Goals
                ! Grmindwater Releases
                ' Controlled - Verified
                | Human Exposures
                 CanlrolM-Verified
                                  | iQroundwater Releases
                                  Controlled - Planned
                                  f Human-Exposures
                                  Controlled - Planned
£   loo
§    90
33    80
1    70
•S    60
     50
     40
     30
     20
     10
      0
    •a
    c
    ca
    o
    n.
    O
    *
                                           Fiscal Year
        Training will remain a high priority for the Corrective Action Program. This training, which
 builds on earlier training in 1999 and 2000, will focus on principles of the cleanup reform effort. The
 Agency is partnering with outside stakeholders to develop a practical program of training, which will
 be conducted in 2001 and 2002.

        Research

        This research supports the Agency's objective of reducing or controlling potential risks posed
 to human health and the environment through better waste management and restoration of abandoned
 waste sites.  Research related to hazardous substances (Superfund), leaking underground storage
 tanks (LUST), and oil spills falls within this objective.
                                           V-30

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       Hazardous Substance research focuses on improving scientific understanding of the potential
human health and ecological risks that may be posed by contaminated groundwater, soils, and
sediments including: 1) the presence of highly toxic site contaminants, such as heavy metals and
volatile organic chemicals; 2) the potential for multiple routes of exposure; and 3) the large number
of contaminated sites, many of which (e.g., sediments, mining) cover large areas, providing high
exposure (particularly to ecosystems). Contamination of groundwater and sediments in the riparian
zone (i.e., river and stream banks) is also of considerable concern due to their importance to humans
and ecosystems.  The extent and geological complexity of many of these sites present many
uncertainties when determining risk, as well as in finding accurate, low-cost techniques for site
characterization and remediation.

Groundwater and Soils

       The Agency supports an integrated research program of exposure, assessment, and risk
management  to understand the processes that govern contaminant transport and fate and also
remediation and monitoring technologies, especially their cost-effectiveness, yielding more efficient
hazardous waste site cleanup.

       In F Y 2002, the exposure research program will include non-invasive geophysical techniques
that provide methods of subsurface site characterization and contaminant evaluation, yielding a
greater ability to make sound remediation decisions.  Significant effort will be directed toward
experiments at a unique field test facility for evaluating these geophysical technologies under dense
non-aqueous phase liquids (DNAPL) controlled-spill conditions. The facility will also be used to
evaluate other subsurface (e.g., groundwater) sampling methods and designs.

       Current exposure research also focuses on the improvement of the collection of soils
contaminated with volatile organic compounds (VOCs). The research program will examine VOC
releases due to sample disturbance, compositing soils contaminated with VOCs, and the quality of
common analytical methods for VOCs in soils.  A major product in FY 2002 will be  a prototype
device for sampling VOCs from contaminated soils around Superfund sites. This device will greatly
increase the accuracy of VOC measurements in soils by minimizing losses during sample collection
and shipment. Another major product in FY 2002 will be laboratory representative subsampling
guidance, based on environmental statistics research.

       The exposure research program also develops advanced instrumentation for soils and
groundwater characterization which focuses on methods that will provide high-quality data rapidly
with simple and rugged protocols. Emphasis will be on technologies that can eventually be used to
perform analysis in the field, specifically those that can determine pollutants that are intractable by
conventional EPA methods, as well as those that improve risk assessments by providing specific
information on the most hazardous forms of pollutants. Currently, pollutants of primary interest are
polyaromatic hydrocarbons (PAHs), chlorinated organics, petroleum related compounds, and toxic
metals.

       The risk assessment research program focuses on both human health and ecological research.
Human health research involves developing methodologies, models, and factors that can enable risk


                                          V-31

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assessors to better develop more accurate quantitative estimates of the amount of a contaminant
found in the soil matrix that is lexicologically available to cause harm. Major areas of emphasis for
FY 2002 will  include: developing statistical  distributions for exposure  factors to facilitate
probabilistic analysis; further refining and validating the biokinetic models for lead and other toxic
metals;  developing better  models and methods for dermal exposure;  and  evaluating  the
bioavailability of soil-borne contaminants.

       Ecological risk assessment research develops methodologies and factors that can enable
ecological risk assessors to  estimate the amount of soil-borne  contamination that will be
lexicologically available to harm ecological receptors. The major area of emphasis for FY 2002 will
be developing ecological soil screening values for common soil contaminants. These screening
values will enable the Agency to make prompt decisions about what levels of contamination are not
harmful to human health and/or ecosystems.

       The Agency's risk management research program will address priority remediation problems
in groundwater and soils, helping to reduce human health and ecosystems exposure to hazardous
materials in soils and groundwater by making remediation more efficient.

       In the area of groundwater research, the Agency plans to complete and report on the first
phase of small-scale field tests on the use of surfactants and cosolvents for DNAPL cleanup.
DNAPLs are a major source of organic groundwater contamination for which there are few effective
commercialized remediation options. Research will also continue on the use of thermal treatment
for cleanup processes. In addition,  research will be conducted on the remediation of dissolved
inorganic plumes and related source  areas, including their  natural attenuation (NA).   Other
groundwater research will include developing methods to evaluate the long-term performance of
permeable reactive barriers (PRBs) and groundwater containment systems.

       In the area of soil remediation,  research will continue on the cost-effectiveness of several
bioremediation options for the treatment of PAHs, and on the effectiveness of natural attenuation
toward this contaminant class. Research on the immobilization of metals in soils to reduce their
mobility and bioavailability will shift from lead to other priority metal contaminants and decrease
as field tests are completed. Studies of phyto-remediation options will continue, with field studies
of selected options and other studies to  understand the chemical, physical and biological processes
involved.

       Containment research will include work on caps, covers and vertical barriers for the vadose
zone (i.e., the unsaturated zone), as well as fixed barriers and pumping methods for contaminated
plumes.  Research for barriers, as well as  other containment systems, will  address long-term
maintenance and effectiveness. Studies of the design and application of geosynthetic clay liners will
continue, with new field studies being initiated.

Contaminated Sediments

       In FY 2002 the effects research program will investigate the" effects of contaminated
sediments on human health and the environment. Work will focus on the effects of bioaccumualtive
                                          V-32

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chemicals, such as some metals, that will be used to update existing sediment guidelines, develop
the scientific basis for wildlife criteria, and determine how to bring these together to establish
integrated risk-based criteria. Research includes the development of bioaccumulation factors, biota-
sediment assessment factors, and stressor response models relating the effects of chemical stressors
on target aquatic dependent organisms.

       Contaminated sediments research will also study the cost and effectiveness of conventional
remediation options, such as dredging, and disposal facilities. In FY 2002, this work will expand
with more field tests being conducted.

Superfund Innovative Technology Evaluation (SITE), Hazardous Substance Research Centers
(HSRCs), Oil Spills, and Leaking Underground Storage Tanks (LUST)

       Other important efforts in contaminated sites research to reduce or control risks to human
health include the Superfund Innovative Technology Evaluation (SITE) program and the Hazardous
Substance Research Centers (HSRCs) program.  The Agency also supports efforts to reduce or
control risks from oil spills and Leaking Underground Storage Tanks (LUST).

       The  SITE program fosters the development and use  of lower cost characterization
technologies and risk management remediation technologies for sediments, soils, and groundwater.
The goal of this program is to identify, demonstrate, assess, and distribute information about
innovative and alternative environmental technologies to developers, remediation site managers, and
regulators.  This, in turn, would make characterization and remediation processes more efficient.
In the characterization area, the focus will be on initiating studies of selected technologies, which
may include ecological samplers and biosensors, while completing efforts on demonstration reports
on total petroleum hydrocarbons (TPH) in soil and sediment sampling technologies. Under the
remediation area, the program will be continuing evaluations of technologies dealing with priority
remediation problems, including sediments and DNAPLs, where innovative technologies are being
commercialized. The annual SITE Report to Congress, which provides program/project status and
cost savings information, will also be produced.

       In FY 2002, the Agency will also continue to support HSRC' s. Five multi-university centers
will focus on different aspects of hazardous substance management. They bring together researchers
from a variety of disciplines to collaborate on integrated research projects.

       In FY 2002, oil spills research will involve the development of an oil spill model applicable
to near-coastal water and options to clean up fuel and chemical spills to navigable waterways.
Efforts will result in a report on the oil spill  and dispersant model, including tested software, a
database of required input parameters, and an Internet-based  user's guide. Research will also be
conducted on cleanup options for nonfloating oils, along with studies on their persistence and
toxicity changes during biodegradation.

       Leaking Underground Storage Tanks (LUST) Corrective Action research looks at cleanup
processes for fuels and fuel oxygenates. This work results in a better understanding of naturally
occurring subsurface processes that degrade fuel components; reliable indicators to measure natural


                                          V-33

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attenuation (NA) rate and extent; and models and resource documents to predict the likelihood of
site-specific NA effectiveness. Research also includes development and evaluation of more cost-
effective remediation techniques for contaminants in soils and groundwater. In FY 2002, research
will continue to focus primarily on the NA and remediation of groundwater contaminated with the
fuel oxygenate methyl tertiary butyl ether (MTBE).
FY 2002 Change from FY 2001 Enacted

LUST:

•      (-$105,200) Decrease to provide additional funds to support increased costs associated with
       the workforce based on the Agency's repncing of payroll.

•      (-1.2 FTE) Reduction of work years from the control of risks from Leaking Underground
       Storage Tanks (LUSTs).
EPM:
       (+$144,400) Increase to provide additional funds to support increased costs associated with
       the workforce based on the Agency's repricing of payroll.

       (-$347,700) Decrease to RCRA programmatic funds to support agency's  cost of living
       allowance requirements.

       (-$325,000) Decrease to information resource management activities as a  result  of
       streamlining ongoing processes within RCRA.

       (+$929,500) Increase for costs associated with agency's cost of living adjustment for the
       workforce.

       (-3.5 FTE) Reduction of work years to  corrective action activities under the  Resource
       Conservation and Recovery Act (RCRA)
       No change.
Superfund:
       (-$3,621,000) Decrease to Superfund programmatic funds to support Agency increase in
       workforce costs.
                                         V-34

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       (+$4,3 62,200) Redirection from Goals 8 and 10 to Goal 5 to better align laboratory resources
       that support the Superfund program.

•      (-$5,000,000) Decrease in Superfund enforcement resources to fund additional activities in
       the brownfields program. This decrease does not affect the  overall Superfund  level of
       funding in this objective.

•      (-19.8 FTE) This reflects a reduction in the following Superfund enforcement activities: work
       with potentially responsible parties; cost recovery efforts; and, developing interagency
       agreements with other Federal agencies.

•      (-43.7 FTE)  Redirection of resources to the Agency's new enforcement grant program.
       These resources will now be used to support the Agency's efforts to assist states and tribes
       in carrying out environmental enforcement responsibilities.

•      (-1.6 FTE) This reflects a reduction in the oil prevention, pollution and  preparedness
       activities.

•      (-16.0 FTE)This refl ects a reduction in the remedial program which performs work at NPL
       sites.

*      (-1.6 FTE) This reflects a reduction in the site assessment portion of the Superfund program.

BRAG

•      (-14.1 FTE) This  reflects a reduced level of support requested by Department of Defense
       (DOD) at closing military bases.

Brownfields:

*      (+$5,000,000)  Additional investment hi brownfields  reflecting a redirection from the
       Superfund Enforcement program.  Of the total investment, $2.5M  will be  used  for
       assessment demonstration pilots and $2.5M will go directly to states and tribes to support
       State voluntary cleanup programs.

•      (-$6,000,000) Redirection from the Brownfields Cleanup Revolving Loan Fund program to
       support a  shift hi emphasis to assessment demonstration pilots, state voluntary cleanup
       programs, and  targeted brownfields assessments.

•      (+$4,000,000)  Redirection to  assessment demonstration pilots, targeted  brownfields
       assessments, and oversight and technical support due to growth in number of applications
       received versus funding amount available.

•      (+$2,000,000)  Increase to state voluntary cleanup programs to  provide support to the states
       in their streamlined cleanup approaches.
                                         V-35

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      Research

Superftmd

•     (+$1,796,200) This increase reflects an increase in workforce costs.

*     (+$ 1,398,000, +10 FTE) This shift represents the Agency's continuing need for research on
      contaminated sediments, however focus for that need has shifted from O W to OS WER. This
      work will focus on the effects of bioaccumulative chemicals that will be used to update
      existing sediment guidelines, develop the scientific basis for wildlife criteria, and how to
      bring these together to create an integrated risk based criteria.

•     (+$240,600) This reflects an increased effort to  Superfund technical support under risk
      management. It provides site-specific assistance on engineering and treatment processes as
      well as assistance on groundwater and subsurface contamination problems.

•     (-$1,398,000, -10 FTE) This reduction reflects  a planned shift in emphasis from risk
      management of soil and groundwater to watershed restoration for the development of
      TMDL's and to work on suspended solids and sediments, or clean sediments.

      ( -$1,070,800,   -10 FTE )  This decrease in workyears reflects a shift of 8 FTE  from
      Superfund to the Science and Technology Appropriation in Goal 2, Objective .2 for watershed
      restoration. The goal of this research is to develop decision support tools to assist watershed
      managers in analyzing problems and identifying cost effective solutions. This also reflects
      a shift of 2 FTE to Goal 5, Objective 2 to improve waste management options which will
      help to develop more cost effective waste treatment and containment processes. There will
      be no new projects associated with soil remediation as well as the phase out of lower priority
      projects to allow for the shift.
       (-$7,225,400) The FY 2002 request is $7,225,400 below the FY 2001 Enacted budget level
       due to the Congressional earmarks received during the appropriations process which are not
       included in the FY 2002 President's Request.

       (-$1,579,400, -10.6 FTE) The reduction to workyears represents a redirection from Goal 5,
       Objective 1, soil and sediment remediation, to Goal 5, Objective 2, waste management
       research,  specifically to risk management technical  support and subsurface processes
       research. While this represents a shift out of soil and sediments remediation research under
       the Science and Technology Appropriation, substantial effort in this area is supported under
       the hazardous substance research program.
Annual Performance Goals and Performance Measures

Leaking Underground Storage Tank Cleanups


                                         V-36

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In 2002     EPA and its partners will complete 23,000 Leaking Underground Storage Tank (LUST)
           cleanups for a cumulative total of approximately 294,000 cleanups since 1987.

In 2001     Complete 21,000 Leaking Underground Storage Tank (LUST) Cleanups for a cumulative
           total of approximately 271,000 cleanups since 1987.

In 2000     EPA met its goal by completing 20,834 LUST cleanups, for a cumulative total of 249,760
           since 1987.
In 1999    EPA completed 25,678 LUST cleanups.
Performance Measures:
LUST cleanups completed.
FY 1999
Actuals

25,678
FY 2000    FY 2001    FY 2002
Actuals     Estimate    Request

20,834      21,000      23,000      cleanups
Baseline:   EPA completed a total of 249,760 LUST cleanups from 1987 through 2000.

Tribal Cleanup Assistance

In 2002     EPA will continue to emphasize increasing the number of Indian tribes participating in the
           Superfund program, as  expressed through the number of tribes supported by Superfund
           cooperative agreements  with tribes and intertribal consortia.

In 2002     Complete 40 Leaking Underground Storage Tank (LUST) Cleanups in Indian Country for
           a cumulative total of 607 cleanups since 1987.

In 2001     EPA will continue to emphasize increasing the number of Indian tribes participating in the
           Superfund program, as  expressed through the number of tribes supported by Superfund
           cooperative agreements  with tribes and intertribal consortia.

In 2001     Complete 65 Leaking Underground Storage Tank (LUST) Cleanups in Indian Country for
           a cumulative total of 567 cleanups since 1987.
Performance Measures:
LUST cleanups in Indian Country.

Site assessments (PA/SI) conducted in
Indian country.

The number of tribes supported by cooperative
agreements with tribes/intertribal consortia.

Funding provided for building tribal capacity.

Percentage of Superfund sites impacting Indian
country where a tribe is involved as either
the lead or support agency.
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate

65
FY2002
Request

40
                                               cleanups
                       no target    no target    assessments
                       no target

                       no target
                       no target
                       no target
                       agreements

                       funding
                       no target    no target    involvement
Baseline:    EPA completed a total of 502 LUST cleanups in Indian Country from 1987 through 2000.
            The baseline for Superfund activities is currently under development.

Superfund Site Assessments
                                               V-37

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In 2002      EPA and its partners will make final Superfund site assessment decisions on 475 additional
            sites for a cumulative total of 37,101.

In 2001      EPA and its partners will make final Superfund site assessment decisions on 475 additional
            sites for a cumulative total of 36,626,

In 2000      EPA met its goal, accomplishing 468 final site assessments, for a cumulative total of 36,151
            over the life of the program.

In 1999      EPA exceeded the target by completing 744 final site assessment decision.

Performance Measures:                      FY1999    FY2000    FY2001    FY2002
                                           Actuals     Actuals     Estimate    Request

Final site assessment decisions.                744        468        475        475        assessments

Baseline:    EPA completed a total of 36,151 final site assessments from 1982 through 2000.

Superfund Removal Response Actions

In 2002      Conduct 285 Superfund removal response actions for a cumulative total of 6,861 removal
            response actions since 1982.

In 2001      Conduct 300 Superfund removal response actions for a cumulative total of 6,586 removal
            response actions since 1982.

In 2000      EPA exceeded its target by conducting 357 removal response actions, for a cumulative total
            of 6,286 over the life of the program.

In 1999      EPA exceeded the target by conducting 356 removal response actions.

Performance Measures:                      FY 1999    FY2000    FY2001    FY2002
                                           Actuals     Actuals     Estimate    Request

Removal response actions.                    356        375        300        285        removals

Baseline:    EPA completed a total of 6,286 removal response actions from 1982 through 2000.

Superfund Cleanups

In 2002      EPA and  its partners will complete 65 Superfund cleanups (construction completions) to
            achieve the overall goal of 897 construction completions by the end of 2002.

In 2001      EPA and its partners will complete 75  Superfund cleanups (construction completions) to
            achieve the overall goal of 897 construction completions by the end of 2002.

In 2000      EPA met its target, attaining a total of 87 construction completions, for a cumulative total of
            757 construction completions over the life of the program.

In 1999      EPA met the target of 85 construction completions.

Performance Measures:                      FY 1999    FY2000    FY2001    FY2002
                                           Actuals     Actuals     Estimate    Request


                                                V-38

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Construction completions.                    85          87         75          65          completions

Baseline:    EPA completed a total of 757 construction completions from 1982 through 2000,

Superfund Intermediate Cleanup Indicators

In 2002      EPA will increase the number of Superfund hazardous waste sites with human exposures and
            migration of contaminated groundwater under control.
Performance Measures:
Superfund hazardous waste sites with
human exposures controlled.

Superfund hazardous waste sites with
groundwater migration controlled.
FY 1999
Actuals
FY 2000
Actuals
FY 2001
Estimate
FY2002
Request
                                   no target    sites
                                   no target    sites
Baseline:    In FY 2001, EPA established a preliminary baseline of 1450 final and deleted NPL sites to
            monitor for human exposures under control. 1126 (78%) of these 1450 sites have human
            exposures under control. In FY 2001, EPA established a preliminary baseline of 1204 final
            and deleted NPL sites to monitor for migration of contaminated groundwater under control.
            745 (61%) of these 1204 sites have contaminated groundwater migration under control.

Superfund Cost Recovery

In 2002     Ensure trust fund stewardship by getting PRPs to initiate or fond the work and recover costs
            from PRPs when EPA expends trust fund monies. Address cost recovery at all NPL and
            non-NPL sites with a statute of limitations (SOL) on total past costs equal to or greater than
            $200,000.

In 2001     Ensure trust fund stewardship by getting PRPs to initiate or fond the work and recover costs
            from PRPs when EPA expends trust fond monies.  Address cost recovery  at all Superfund
            sites with a statute of limitations (SOL) on total past costs equal to or greater than $200,000.

In 2000     Addressed cost recovery at 98.5% of NPL and non-NPL sites with a statute of limitations on
            total past costs equal to or greater than $200,000.

In 1999     We met our goal to ensure trust fond stewardship by recovering costs from PRPs when EPA
            expends trust fond monies.  EPA addressed cost recovery at 99% of all National Priority List
            (NPL) and non-NPL sites with a statute of limitations on total past costs equal to or greater
            than $200,000.
Performance Measures:
FY 1999
Actuals
Address Cost Recovery at all NPL & Non-NPL
 sites w/tot. past costs = or >$200K            99

Refer to DO J, settle, or write off 100% of Statute
of Limitations (SOLs) cases for SF sites
with total unaddressed past costs equal
to or greater than $200,000 and report
FY 2000
Actuals
            98.5
FY 2001
Estimate
FY2002
Request
                                   Percent
                                                V-39

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value of costs recovered.
                        100
                        100
                        Percent
Baseline:    In FY 98 the Agency will have addressed 100% of Cost Recovery at all NPL & non-NPL
            sites with total past costs equal or greater than $200,000.

Superfund Potentially Responsible Party Participant

In 2002     Maximize all aspects of PRP participation which includes maintaining PRP work at 70% of
            the  new remedial construction starts at non-Federal Facility Superfund, and  emphasize
            fairness in the settlement process.

In 2001     Maximize 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 emphasize fairness in the settlement process.

In 2000     Maximize all aspects of PRP participation by maintaining PRP work at 68% of the new
            remedial  construction starts at non-Federal Facility Superfund sites, while emphasizing
            fairness in the settlement process.

In 1999     Achieved >70% responsible party participation in new remedial actions at NPL sites. Goal
            met with the exception of completing 5 Sect 106 Civil Actions & 2 Remedial Admin Orders
            primarily due to a decline in the no. of sites available for Remedial Design/Remedial Action
            negotiation  completions.
Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY 2001
Estimate
FY2002
Request
Section 106 Civil Actions                     33

Orphan Share Offers at all eligible work
settlement negotiations.                       100%

De Minimis Settlements                       38

Remedial Administrative Orders               17

Administrative and judicial actions

Ensure fairness by making Orphan Share
Offers at 100% of all eligible settlement
negotiations for response work.

Provide finality for small contributors by entering
 into De Minimis settlements and report the
number of settlers.

PRPs conduct 70% of the work at new
construction starts
            100%

            18



            100
                        100
                        18
                        70
                        100
                        18
                        70
                        Agreements


                        Sites

                        Settlements

                        Orders

                        Actions



                        Percent



                        Settlements
                        Percent
Baseline:    In FY 98 approximately 70% of new remedial work at NPL sites (excluding Federal
            facilities) was initiated by private parties.
                                                 V-40

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Superfund Prospective Purchaser Agreement

In 2002     Continue to make formerly contaminated  parcels of land available  for residential,
            commercial, and industrial reuse by addressing liability concerns through the issuance of
            comfort letters and Prospective Purchaser Agreements (PPAs).

In 2001     Continue to make formerly contaminated  parcels of land available  for residential,
            commercial, and industrial reuse by addressing liability concerns through the issuance of
            comfort letters and Prospective Purchaser Agreements (PPAs).

In 2000     The Prospective Purchaser Agreement (PPA) assessment annual performance goal was not
            met in FY 2000 because of the complexity of PPAs where determinations needed to be
            addressed prior to forwarding the draft to the prospective purchasers.

In 1999     We met our goal of continuing to make formerly contaminated parcels of land available for
            residential,  commercial, and industrial reuse by addressing 100% of liability concerns
            through the issuance of comfort letters and prospective purchaser agreements.

Performance Measures:                       FY 1999    FY2000    FY2001    FY2002
                                           Actuals      Actuals     Estimate    Request

Evaluate liability concerns - Prospective
Purchaser Agreement requests assessed        100         85                                 Percent

Evaluate liability concerns- 100% of
Prospective Purchaser Agreement requests
addressed up to a maximum of 40 requests.                            100        100         Percent

Baseline:    In FY 98 EPA signed 24 PPAs. A total of 70 PPA agreements have been achieved since the
            guidance was issued five years ago.

Superfund Federal Facilities Compliance

In 2002     Within 18 months  after final listing on the  NPL, EPA will  make a final offer for an
            interagency agreement (IAG) that is consistent with Agency policy and guidance at 100% of
            Federal facility Superfund sites.

In 2001     Within 18 months after final listing on the NPL, EPA will  make a final offer for an
            interagency agreement (IAG) that is consistent with Agency policy and guidance at 100% of
            Federal facility Superfund sites.

In 2000     Negotiations were completed with lAGs signed at two out of the six targeted Federal facility
            NPL sites.

Performance Measures:                       FY 1999    FY2000    FY2001    FY2002
                                           Actuals      Actuals     Estimate    Request

Federal Facilities CERCLA Negotiations                   1                                  Negotiations

Federal Facilities Current NPL JAGs                       2                                  NPL lAGs

Percentage of Federal facility NPL sites for                                      ..


                                                V-41

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which final offers have been made that meet
Agency policy and guidance.

Percentage of Federal facilities with final
 offers made within 18 months.
                        100
                        100
                        100
                        100
                        Percent
                        Percent
Baseline:    EPA will track the federal facilities listed on the NPL after October 1, 1999, and for which
            the 18-month limit expires during the fiscal year. As of the beginning of FY2001, one site
            meets this criteria.

RCRA Corrective Action

In 2002     172 (for a cumulative total of 986 or 57%) of high priority RCRA facilities will have human
            exposures controlled and 172 (for a cumulative total of 909 or 53%) of high priority RCRA
            facilities will have groundwater releases controlled.

In 2001      172 (for a cumulative total of 814 or 47%) of high priority RCRA facilities will have human
            exposures controlled and 172 (for a cumulative total of 737 or 43%) of high priority RCRA
            facilities will have groundwater releases controlled.

In 2000     EPA met its RCRA corrective action goal with an additional 191 of the high priority RCRA
            facilities having human exposures controlled, and an additional  168 high priority RCRA
            facilities having groundwater releases controlled.

In 1999     162 (for a cumulative total of 477 or 28%) of high priority RCRA facilities have human
            exposures controlled and 188 (for a cumulative total of 440 or  26%) have groundwater
            releases controlled.
Performance Measures:
High priority RCRA facilities with human
exposures to toxins controlled.

High priority RCRA facilities with toxic
releases to groundwater controlled.
FY 1999
Actuals
162
188
FY 2000
Actuals
191
168
FY2001
Estimate
172
172
FY 2002
Request


172


172
facilities
facilities
Baseline;    EPA established a baseline of over 1,700 high priority corrective action facilities in January
            1999.

Brownfields Site Assessment Grants

In 2002     EPA will provide additional site assessment funding to 38 new communities, and to 38
            existing communities, resulting in a cumulative total of 2,750 properties assessed, the
            generation of 14,000 jobs, and the leveraging of $3.4 billion in cleanup and redevelopment
            funds since 1995.

In 2001     EPA will provide additional site assessment funding to 50 communities, resulting in a
            cumulative total of 2,500 Properties assessed, the generation of 12,000 jobs, and  the
            leveraging of $3.1 billion in cleanup and redevelopment funds since 1995.
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In 2000     Although final data is not expected until April 2001, third quarter data shows that the goal
            was exceeded.  Third quarter results  show cumulative totals of 2,024 site assessments,
            generation of 7,446 jobs and leveraging of $2.8 billion in cleanup and redevelopment funds.
In 1999     EPA exceeded its goal and reached 307 communities by the end of FY 1999.
Performance Measures:


Cumulative leveraging of cleanup
and redevelopment funds.

Cumulativejobs generated.

Cumulative site assessments.

Cooperative agreements to
support Brownfields assessment pilots.
FY 1999
Actuals
FY2000
Actuals
FY2001
Estimate
            not available $3.1 B

            not available 12,000

            not available 2,500
FY2002
Request


$3.4 B

14,000

2,750
                                   funds leveraged

                                   jobs generated

                                   assessments
80
                                   agreements
Baseline:    By the third quarter of FY 2000, EPA assessed 2,024  sites, generated 7,446 jobs, and
            leveraged $2.8 billion in cleanup and redevelopment funds.

Brownfields Community Support

In 2002     EPA will provide funding for 29 communities to capitalize revolving loan funds, provide
            funding for 10 job training pilots, and support 28 existing Showcase Communities, and
            enhance the Brownfields Federal Partnership.

In 2001     EPA will provide funding for 30 communities to capitalize revolving loan funds, provide
            funding for 10 job training pilots, support 16 existing showcase communities and provide
            funding for 12 additional showcase communities, and enhance the Brownfields Federal
            Partnership.

In 2000     EPA met its goal, benefitting a total of 61 communities through 37 agreements to capitalize
            revolving loan  funds.  Additionally,  EPA was successful  in  supporting 16 showcase
            communities and 16 job training pilots.

In 1999     EPA met its target by supporting 16 existing showcase communities, and provided funding
            for 68 communities to capitalize brownfields cleanup revolving loan funds resulting in the
            award of 45 cooperative agreements.
Performance Measures:
Showcase communities.
FY 1999
Actuals

16
Communities served by cooperative
agreements to capitalize revolving loan funds.   45

Job training pilots.
FY2000
Actuals

16
            37

            16
FY2001
Estimate

28
            30

            10
FY2002
Request

28
            29

            10
communities


agreements

pilots
                                                V-43

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Baseline:    By the end of 2000, EPA signed 104 agreements for capitalization of revolving loan funds,
            awarded 37 job training pilots, and provided continued support to 16 showcase communities.

Counter Terrorism

In 2002     Provide anti-terrorism training to 5 communities.

In 2001     Provide anti-terrorism training to 20 communities.

In 2000     EPA exceeded its goal by providing anti-terrorism training to 27 communities.

In 1999     Anti-terrorism training has been completed for 31 communities.

Performance Measures:                       FY 1999     FY2000    FY2001    FY2002
                                            Actuals     Actuals     Estimate    Request

Number of communities receiving
anti-terrorism training                        31          27         20          5           communities

Baseline:    135 states, communities and territories are considered most vulnerable to acts of terrorism.

Resgarch

Scientifically Defensible Decisions for Site Clean

In 2002     Provide at least 6 innovative approaches that reduce human health and ecosystem exposures
            from DNAPLs and MTBE in soils and groundwater, and from oil and persistent organics in
            aquatic systems.

In 2002     Provide at least 2 new soil sampling methods, soil contaminant screening levels for at least
            20 chemicals that  pose ecological risks, and generate specific statistical distributions for
            factors used in human health exposure assessments.

In 2001     Provide technical information to support scientifically defensible and cost-effective decisions
            for cleanup of complex sites, hard-to -treat wastes, mining, oil spills near shorelines, and
            Brownfields to reduce risk to human health and the environment.

In 2000     The MTBE case studies summary report was delayed to include more than the original four
            sites. The SITE report was sent to OMB  in FY 2000, but the time required for approval
            delayed its arrival in Congress. The dermal exposure route report was delayed until 12/00 to
            allow for completing peer review.

In 1999     Produced: 1) manual of practice for the Horizontal Lasagna Process; 2) research data from
            bench-scale studies of leachate application to liner materials; and 3) final cover guidance
            revision on an EPA report entitled, "Alternative Cover Assessment Project Phase I Report."

In 1999     Produced the annual  Superfund Innovative Technology and Evaluation (SITE) Program
            report, and completed six (6) innovative technology reports.

In 1999     Completed: 1) Statistical Distribution for Selected Exposure Factors; 2) report and software
            on modeling of bioavailability of cadmium at hazardous waste sites; 3) issue paper on
                                                 V-44

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            pesticide degradation in hazardous waste sites; 4) report on software and database for pilot
            project to enhance MIXTOX database.
Performance Measures:
Environmental Research Brief on permeable
reactive barrier of ground water contaminated
with chromium and chlorinated solvents

Using data from the Exposure Factors
Handbook, develop peer-reviewed statistical
distributions for  selected exposure factors.

Technical Resource Document for
Monitored Natural Attenuation in Sediments

Summary Report of Case Studies of Natural
Attenuation of MTBE, a fuel additive, at
Geographically Diverse Locations

Progress report on Field Demonstration of
Chemically-Enhanced Subsurface Dense,
Non-Aqueous Phase Liquid
Extraction Technologies

Superfund Innovative Technology Evaluation
(SITE) Program Report to Congress.

A report summarizing the key research
findings methods, models, and factors
relating to evaluating the risks from
the dermal route of exposure.

Review the 20 most common Superfund soil
contaminants and develop eco-toxicity soil
screening levels for wildlife and soil biota for
chemicals where there is sufficient data.

Delivery of the Annual SITE
Program Report to Congress

Publish a technical Resource Document on the
bioremediation of oil spills on marine
shorelines. Provide oil spill response
teams with a tool to assess appropriate
applications of bioremediation.

Deliver the Annual SITE Program
Report to Congress.

Annual SITE Program report to Congress
FY 1999
Actuals
FY 2000
Actuals
FY.2.001
Estimate
FY 2002
Request
                                              report
30-Sep-1999
            18-Jan-2001
            31-Dec-2000
            30-Sep-2000
                                   document



                                   report




                                   report


                                   report




                                   report




                                   values
30-Nov-1999
                                               document
                                               report
                                                  V-45

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provides information on the program progress,
accomplishments, current and completed
project status, cost savings and future direction.                                   1          report

Report on children's soil ingestion rates
derived from environmental and
biological measurements of arsenic.                                             1          report

Report on applications of lead biokinetic

models to evaluate human health risks.                                           1          report

Report on ecotoxicity soil screening levels
for mammals, birds, soil plants, and soil biota
for use in ecological risk assessments at
Superfund sjtes                                                              j          tec

Baseline:   In 2002, EPA  research results will improve the Superfund site characterization and risk
           assessment  processes by  developing improved  soil sampling techniques  to  make  site
           characterization quicker, cheaper and more accurate. Soil contaminant screening levels are being
           developed to reduce the need for estimates based solely on knowledge about classes of
           contaminants, instead of the specific contaminants at a site.  Statistical distributions are being
           developed for key input parameters to exposure models, to describe to decision makers a range
           over which site-specific exposure conditions might vary.

           Without adequate remediation options that have been shown to work effectively at full scale,
           Federal, state and industry decisions makers do not have well-documented remediation options
           to consider when cleaning up complex sites. In addition, communities are concerned that a full
           range of options have not been considered. In 2002, EPA will do research and field testing to
           develop and assess the applicability of innovative remediation processes for DNAPLs and MTBE,
           and will study improved approaches to cleaning up oil spills in aquatic environments and their
           associated shorelines. Reports from  this research will provide decision makers with critical
           information needed to select and implement remediation options.
Verification and Validation of Performance Measures

Performance Measure:  LUST cleanups completed

Performance Database:  The Office of Underground Storage Tanks (OUST) does not maintain a
national database.

Data Source:  Designated State agencies submit semi-annual progress reports to the EPA regional
offices.

QA/QC Procedures: EPA regional offices verify and then forward the data to the OUST Headquarters.
OUST Headquarters staff examine the data and resolve any discrepancies with the regional offices. The
data are displayed on a region by region basis, which allows regional staff to verify their data.
                                                V-46

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Data Quality Review: None.

Data Limitations: Relies on accuracy and completeness of state records.

New/Improved Data or Systems: None.

Performance Measure:  [Superfiind] Construction completions

Performance Database: CERCLIS is the official database used by the Agency to track, store, and
report Superfiind site information.

Data Source: Data is entered on a rolling basis by EPA.

QA/QC Procedures: To assure data accuracy and control, the following administrative controls are in
place:  1) Superfund/Oil Implementation Manual (SPIM) — This is the program management manual
which details what data must be reported; 2) Report Specifications -Report specifications are published
for each report detailing how reported data are  calculated; 3) Coding Guide - It contains technical
instructions to such data users as regional Information Management Coordinators (IMCs), program
personnel, report owners and data input personnel; 4) Quality Assurance (AQ) Unit Testing —  Unit
testing is an extensive QA check against current specifications; 5) QA Third Party Testing - Third party
testing is an extensive test made by an independent QA tester to assure that the report produces data hi
conforrnance with the report specifications; 6) Regional CERCLIS Data Entry Internal Control Plan --
The data entry internal control plan includes: a) regional policies and procedures for entering data into
CERCLIS; b) a review process to ensure that all  Superfund accomplishments are supported by source
documentation; c) delegation of authorities for approval of data input into CERCLIS; and, d) procedures
to ensure that reported accomplishments meet accomplishment definitions; and 7) a historical lockout
feature has been added to CERCLIS so that changes in past fiscal year data can only be changed by
approved and designated personnel and are logged to a change-log report.

Data Quality Review:  Two audits, one by  the Office Inspector General (OIG) and the  other by
Government Accounting Office (GAO), were done to assess the validity of the data in CERCLIS.  The
OIG audit report "Superfund Construction Completion reporting", No. E1SGF7-05-0102- 810003 0, was
performed to verify the accuracy of the information that the Agency was providing to Congress and the
public.

Data Limitations: The OIG report concluded that the Agency "has good management controls to ensure
accuracy of the information that is reported," and "Congress and the public can rely upon the information
EPA provides regarding construction completions." The GAO's report, "Superfund Information on the
Status of Sites (GAO/RECD-98-241),"  estimates that the cleanup status of National Priority List sites
reported by CERCLIS is accurate for 95% of the sites.

New/Improved Data or Systems: In 2002, the Agency will continue its efforts begun in 1999 to
improve the Superfund program's technical information by incorporating more site remedy selection,


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risk, removal response, and community involvement information in CERCLIS, Also, it will continue
its efforts to share information among the Federal, state and tribal programs. The additional information
will further enhance the Agency's efforts to efficiently identify, evaluate and remediate Superfund
hazardous waste sites. Also in 2002, the Agency will establish data quality objectives for program
planning purposes.

Performance Measure: High priority RCRA facilities with human exposures to toxins controlled;
High priority RCRA facilities with toxic releases to groundwater controlled.

Human exposures controlled and toxic releases to groundwater controlled are used to summarize and
report on the site-wide environmental conditions at the RCRA Corrective Action Program's highest
priority sites.  The environmental indicators are used to track the RCRA program's progress on getting
highest priority contaminated sites under control. Known and suspected site (-wide) conditions are
evaluated using a series of simple questions and flow-chart logic to arrive at a reasonable defensible
determination. These questions were issued as Interim Final Guidance on February 5, 1999.  Lead
regulators for the site (Authorized State or EPA) make the environmental indicator determination,
However, facilities or their consultants may assist EPA in the evaluation by providing information on
the current environmental conditions.

Performance Database: The Resource Conservation Recovery Act Information System (RCRAInfo)
is the national database which supports EPA's RCRA program.  RCRAInfo contains information on
entities (genetically referred to as "handlers"); engaged in hazardous waste (HW) generation and
management activities regulated under the portion of RCRA that provides for regulation of hazardous
waste.  RCRAInfo has several different modules, including a Corrective Action Module which tracks
the status of facilities that require, or may require, corrective actions. Progress for these measures are
recorded in Corrective Action Module. A "yes" or "no" entry is made in the database with respect to
meeting corrective action indicators. Supporting documentation and reference materials are maintained
in regional and state files.

Data Source: EPA regions and authorized states enter data on a rolling basis.

QA/QC Procedures:. States and Regions, who create the data, manage data quality control related to
timeliness and accuracy (i.e. the environmental conditions and determinations are correctly reflected by
the data).  Within RCRAInfo the application software enforces structural controls which ensure that
high-priority national components of the data are properly entered. RCRAInfo documentation, which
is available to all users on-line, provides guidance to facilitate the creation and interpretation of data.
Training on use of RCRAInfo is provided on a regular basis, usually annually, depending on the nature
of systems changes and user needs.

Data Quality Review:  GAO-1995 Report of EPA's Hazardous Waste Information System reviewed
whether national RCRA information systems support meeting the primary objective of helping EPA and
states  manage  the  HW  program.   Recommendations  coincide with ongoing internal efforts
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(WIN/Inforaied) to improve the definitions of data collected, ensure data collected provides critical
information and minimize burden on states

Data Limitations: None identified.

New/Improved Data or Systems: EPA has successfully implemented new tools for management of
environmental information to support federal and state programs, replacing the old data systems (the
Resource Conservation and Recovery Information System and the Biennial Reporting System) with
RCRAInfo The RCRAInfo system allows for tracking of information on the regulated universe of
RCRA hazardous waste handlers, and characterization of facility  status, regulated activities, and
compliance histories. The system also captures detailed data on the generation of hazardous waste from
large quantity generators and on waste management practices from treatment, storage, and disposal
facilities. RCRAInfo is web accessible, providing a convenient user interface for Federal, state and local
managers, encouraging development of in-house expertise for controlled cost, and sports the ability to
use commercial off-the-shelf software to report directly from database tables.

The Agency has spent considerable time in establishing the baseline for measuring progress on this
measure.  During  1999  the Agency finalized its baseline and national guidance for evaluating and
documenting environmental indicators.  The baseline is composed of a snapshot of 1,714 RCRA
treatment, storage or disposal facilities ranked "high priority" under the National Corrective Action
Priority System in the early 1990s, facilities with corrective action underway, and facilities nominated
for inclusion by a region or state program (up to 15% of a region's baseline),

Performance Measure: [Brownfields] Cumulative site assessments; [Brownfields] Cumulative jobs
generated; [Brownfields] Cumulative leveraging of cleanup and redevelopment funds.

Performance  Database:   The Brownfields Management System (BMS) is   used  to  evaluate
environmental, and economically-related results, such as acres assessed, acres cleaned up, and jobs
generated. BMS uses data gathered from Brownfields pilots' quarterly reports and from the Regions.

The Comprehensive  Environmental Response,  Compensation, and Liability Information System
(CERCLIS) records Regional accomplishments on Brownfields assessments in the Brownfields module.
This module tracks Targeted Brownfields Assessments (TBAs) on a property-specific basis.  This
database module contains information such as: the property's operational status (such as "Active" or
"Inactive"), prior use (such as "Disposal," "Production Facility," or "Midnight Dump"), the actual start
and complete dates for the TBA, the phase of the TEA, the outcome or result of a TB A.

Data Source: Data is entered by EPA headquarters and regional staff on a rolling basis. Data is derived
from grant recipient reports on Pilot and targeted brownfields assessment projects.

QA/QC Procedures: Verification relies on reviews by Regional staff responsible for pilot cooperative
agreements or Brownfields cooperative agreements and contracts.
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Data Quality Review: Several data quality reviews have been conducted by the program and external
organizations. The most recent was by GAO, "Brownfields: Information on the Programs of EPA anc
Selected States" (GAO-01 -52. December 15,2000). GAO recommended that EPA continue to review
data reported by recipients before EPA's new guidelines for results were put in place and make any
corrections needed to  ensure that the data  are consistent with the current guidelines.   They also
recommended that EPA regions monitor and work to improve recipients' reporting of data on key results
measures.

Data Limitations: Since the data is derived from grant recipient quarterly reports, there are significant
data limitations. The reporting of results is subject to the Paperwork Reduction Act and attendant OMB
regulations governing  information collection requests (ICR's), as well as the Agency's assistance
regulations.  The  information collection requirements associated with these regulations have been
approved by OMB (OMB Control Number 2030-0040). EPA requires under 40 CFR 35.6650 that grant
recipients submit quarterly progress reports on activities which are delineated in the Scope of Work for
the grant. The Agency is limited to obtaining information from assessment pilot recipients on specific
accomplishments attained with grant funds, such as properties assessed (40 CFR 35.6650(b)(l)). In
addition, EPA cannot require private sector entities, who do not receive EPA financial assistance, to
provide information related to such accomplishment measures as redevelopment dollars invested or
numbers of jobs created.

New/Improved Data or Systems: In September of 1999 EPA Headquarters issued guidance to the
Regions to standardize quarterly reporting of accomplishment measures for newly awarded and amended
assessment grants. This guidance was developed to ensure that the standardized information collected
fell within the scope of regulations andjhe applicable OMB control number for quarterly reporting by
assessment pilot recipients.  EPA  is also  working  with  recipients to encourage the  use of  this
standardized reporting through workshops and training. To improve recipients' reporting of data on key
results measures, we have implemented the GAO recommendation that we make it clear to recipients
that follow-on awards depend on reported results.

Performance Measure: Evaluate liability concerns -100% of Prospective Purchaser Agreement
requests addressed up to a maximum of 40 requests.

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data  Source:  Automated EPA system;  Headquarters  (HQ) and Regional Offices enter data  into
CERCLIS.

QA/QC Procedures: EPA will use the end-of-year CERCLIS information to obtain the data to support
these measures, and will conduct a quality assurance audit on a representative sample of the data against
actual settlement documents to ensure the accuracy and validation of the data.

Data  Quality Review: None.


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Data Limitations: None

New/Improved Data or Systems:  None

Performance Measure:  Ensure fairness by making Orphan Share Offers at 100 percent of all
eligible sites.

Performance Database:  Comprehensive Environmental Response,  Compensation, and Liability
Information System (CERCLIS)

Data Source: HQ and Regional Offices enter data into CERCLIS

QA/QC Procedures: Data is entered by Regional personnel and a sample is checked by HQ.

Data Quality Review:  The IG reviews the end-of-year CERCLA reports to verify numbers for all
measures. The process is informal and there are no results to publish.

Data Limitations: None

New/Improved Data or Systems:  None

Performance Measure: Provide finality for small contributors by entering into De Minimis
settlements and report the number of settlers.

Performance Database: HQ maintains a data base specifically to track the number of parties at de
minimis settlements

Data Source: Manual and Automated EPA systems; HQ and Regions enter numbers.

QA/QC Procedures: Data is entered by Regional personnel and a sample is checked by HQ.

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None

Performance Measure:  PRPs conduct 70 percent of the work at new construction starts.

Performance Database: Comprehensive Environmental Response,  Compensation, and Liability
Information System (CERCLIS)

Data Source: Automated EPA system; HQ and Regional Offices enter data into CERCLIS

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QA/QC Procedures: To assure data accuracy and control, the following administrative controls are in
place:  1) Superfund/Oil Implementation Manual (SPIM) - This is the program management manual
which details what data must be reported; 2) Report Specifications—Report specifications are published
for each report detailing how reported data are calculated; 3) Coding Guide - It contains technical
instructions to such data users as regional Information Management Coordinators*(IMCs), program
personnel, report owners and data input personnel; 4) Quality Assurance (AQ) Unit Testing - Unit
testing is an extensive Q A check against current specifications; 5) QA Third Party Testing - Third party
testing is an extensive test made by an independent QA tester to assure that the report produces data in
conformance with the report specifications; 6) Regional CERCLIS Data Entry Internal Control Plan —
The data entry internal control plan includes:  a) regional policies and procedures for entering data into
CERCLIS; b) a review process to ensure that all Superfund accomplishments are supported by source
documentation; c) delegation of authorities for approval of data input into CERCLIS; and, d) procedures
to ensure that reported accomplishments meet accomplishment definitions; and 7) a historical lockout
feature has been added to CERCLIS so that  changes in past fiscal year data can  only be changed by
approved  and   designated   personnel   and  are  logged   to  a  change-log   report.
Data Quality Review: The IG reviews the end-of-year CERCLA reports to verify numbers for all
measures. The process is informal and there are no results to publish.

Data Limitations:  None

New/Improved Data or Systems: None

Performance Measure: Refer to DOJ, settle, or writeoff 100% of Statute of Limitations (SOLs)
cases for Superfund sites with total unaddressed past costs equal to or greater than $200,000 and
report value of costs recovered.

Performance Database: Comprehensive  Environmental Response,  Compensation, and Liability
Information System (CERCLIS)

Data Source: Automated EPA system; HQ and Regional Offices enter data into CERCLIS

QA/QC Procedures: To assure data accuracy and control, the following administrative controls are in
place:  1) Superfund/Oil Implementation Manual (SPIM) — This is the program management manual
which details what data must be reported; 2) Report Specifications—Report specifications are published
for each report detailing how reported data are calculated; 3)  Coding Guide - It contains technical
instructions to such data users as regional Information Management Coordinators (IMCs), program
personnel, report owners and data input personnel; 4) Quality  Assurance (AQ) Unit Testing -  Unit
testing is an extensive QA check against current specifications; 5) QA Third Party Testing—Third party
testing is an extensive test made by an independent QA tester to assure that the report produces data in
conformance with the report specifications; 6) Regional CERCLIS Data Entry Internal Control Plan —
The data entry internal control plan includes: a) regional policies and procedures for entering data into

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CERCLIS; b) a review process to ensure that all Superfund accomplishments are supported by source
documentation; c) delegation of authorities for approval of data input into CERCLIS; and, d) procedures
to ensure that reported accomplishments meet accomplishment definitions; and 7) a historical lockout
feature has been added to CERCLIS so that changes in past fiscal year data can only be changed by
approved   and   designated  personnel   and  are  logged   to  a  change-log   report.

Data Quality Review: The IG reviews the end-of-year CERCLA reports to verify numbers for all
measures. The process is informal and there are no results to publish.

Data Limitations: None

New/Improved Data or Systems: None

Performance Measure: Percentage of Federal Facilities for which final offers have been made that
meet Agency policy and guidance.

Performance Database:  Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data Source: Regional Offices enter data into CERCLIS

QA/QC Procedures: Data is entered by Regional personnel and periodic downloads are reviewed by
HQ-

Data Quality Review: HQ periodically confirms accuracy of data with EPA Federal facility Regional
representatives. HQ determines whether Region has made an offer that fully meets Agency policy and
guidance.

Data Limitations: None

New/Improved Data or Systems:  None

Performance Measure: Percentage of Federal Facilities with final offers made withing 18 months.

Performance Database:  Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data Source: Regional Offices enter data into CERCLIS

QA/QC Procedures:  Data is entered by Regional personnel and periodic downloads are reviewed by
HQ. HQ reviews timeliness of final offers.

Data Quality Review: HQ periodically confirms accuracy of data with EPA Federal facility Regional
representatives.

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Data Limitations: None

New/Improved Data or Systems: None

      Research

Verification and Validation of Performance Measures

Performance Measure: Annual SITE Program report to Congress provides information on the
program progress, accomplishments, current and completed project status, cost savings and future
direction.

Performance Database: Not applicable.  This performance measure relates to an EPA scientific or
technical product which is not tracked in an environmental database.

Data Source: Agency generated material

QA/QC Procedures: N/A

Data Quality Reviews:  As required by the Agency-wide formal peer review policy issued in 1993, and
reaffirmed in 1994 and 1998, all major scientific and technical work products used in Agency decision
making are independently peer reviewed before their use. EPA has implemented a rigorous process of
peer review  for both its in-house and extramural research programs.  Peer review panels include
scientists and engineers from academia, industry, and other federal agencies.

Data Limitations: N/A

New/Improved Data or Systems: N/A


Coordination with Other Agencies

LUST

      EPA, with very few exceptions, does not perform the cleanup of the leaking underground storage
tanks (LUST). States and territories use the LUST Trust Fund to administer their corrective action
programs, oversee cleanups by responsible parties, undertake necessary enforcement actions, and pay
for cleanups in cases where  a responsible party cannot be found or is unwilling or unable to pay for a
cleanup. Most states have cleanup funds that cover the majority of owners and operators' cleanup costs.
These state funds are separate from the LUST Trust Fund.

      State LUST programs are key to achieving the  objectives and long-term strategic goals. Except
in Indian Country, EPA relies on State agencies to implement the LUST program, including overseeing
cleanups by  responsible parties and responding to emergency LUST releases. LUST  cooperative

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agreements are made directly to the states to assist them in implementing their oversight and
programmatic role.

Superfund

       The  Superfund program  coordinates with  many other Federal and State  agencies  in
accomplishing its mission.  Executive Order 12580  delegates certain authorities for implementing
Superfund to other Federal agencies.  Many of these agencies perform essential services in areas where
the Agency does not possess the specialized expertise. These responsibilities are carried out in close
consultation and coordination with EPA. Currently, the Agency has active interagency agreements with
the Department of Interior (DOI), the National Oceanic and Atmospheric Administration (NOAA), the
Federal Emergency Management Agency (FEMA), the Occupational Safety and Health Administration
(OSHA), and the United States Coast Guard (USCG).

       These agencies provide numerous Superfund related services such as supporting the national
response system by providing emergency preparedness expertise and administrative support to the
national response team and the regional response teams; conducting compliance assistance visits to
review site safety and health plans and developing guidelines for assessing safety and health at hazardous
waste sites; conducting outreach to states, Indian tribes and Federal natural resource trustee officials
regarding natural resource damage assessments; providing scientific support for response operations in
EPA's regional offices; assisting in the coordination among federal and state natural resource trustee
agencies; supporting the Superfund program in the management and coordination of training programs
for local officials  through the  Emergency Management Institute and the National Fire Academy; and
responding to actual or potential releases of hazardous substances involving the coastal zones, including
the Great Lakes and designated inland river ports; and litigating and settling cleanup agreements and cost
recovery cases. In addition, the Agency coordinates with the United States Army Corp of Engineers
(USAGE), states,  and tribes in the identification and cleanup of approximately 9,100 formerly used
defense sites nationwide.  Expectations are that the Agency will play an even greater role at these sites
in the future.

       USAGE and the Bureau of Reclamation contribute to the cleanup of Superfund sites by providing
technical support for the  design and construction of many remediation projects though site-specific
interagency agreements. These Federal partners have the technical design and construction expertise and
contracting capability needed to assist EPA regions in implementing  most of Superfund's high-cost
Fund-financed remedial action projects. These two agencies also provide technical on-site support to
regions in the enforcement oversight of numerous construction projects performed by PRPs.

       The Superfund response and Federal Facilities enforcement programs work closely with other
Federal agencies (e.g., DOD, DOE, DOI, etc.) to clean up their facilities under the Superfund program.
EPA also works with states and Indian tribes as key partners in the cleanup decision-making process at
Superfund Federal sites.

       The Agency also works in partnership with State and Tribal governments to strengthen their
hazardous waste programs and improve the efficiency and effectiveness of the nation's overall hazardous

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waste response capability. EPA assists the states in developing their CERCLA implementation programs
through infrastructure support, financial and technical assistance, and training. Partnerships with states
increase the number of site cleanups, improve the timeliness of responses, and make land available for
economic redevelopment sooner, while allowing for more direct local involvement in the cleanup
process.

       EPA is working to enhance the role of states and tribes in the implementation of the Superfund
program by encouraging their participation in all aspects of the Federal Superfund program, from site
assessment through remedial design and construction. In May 1998, EPA released the "Plan to Enhance
the Role of States and Tribes in the Superfund Program." The plan was developed so that EPA can share
Superfund program responsibilities more fully with interested and capable states and tribes, enabling the
cleanup of more sites. In 1999 and 2000, EPA continued to implement the plan.  Seventeen pilots were
approved with eight states and nine tribes. In January 2001, EPA completed the evaluation of the plan
and released the report, "Evaluation of the Plan to Enhance the Role of States and Tribes in the
Superfund Program OSWER 9375.3-06P," and issued a directive to communicate the use of the plan.

       EPA's Office of Emergency and Remedial Response (OERR) works with the Office of Radiation
and Indoor Air (ORIA) to most effectively fulfill the Superfund program's priorities to assist Regions
in addressing radioactively contaminated Superfund sites. Under CERCL A, radioactively contaminated
sites are addressed in a manner consistent with how chemically contaminated sites are addressed, except
to account for the technical difference between radionuclides and chemicals. OERR works with ORIA
to determine which projects and laboratory support ORIA should develop with the budget provided by
OERR. This effort is intended to facilitate compliance with the NCP at radioactively contaminated sites
while incorporating improvements to the Superfund program that have been implemented through the
Superfund Administrative Reforms.

       The focal point for our Federal preparedness efforts is EPA's role in the National Response
System, which coordinates chemical emergency preparedness and response at the Federal, State and local
levels. Within this structure, EPA chairs the multi-agency National Response Team, and co-chairs
Regional Response Teams that  oversee national, regional,  and area spill emergency planning. In
addition, the Agency plays a leadership role in crisis  management and counter-terrorism requiring
participation on a number of inter-agency workgroups.

       EPA serves an active role in programs related to radiation protection for human health and the
environment. EPA plays the lead role developing Federal Guidance for radiation protection as directed
by the President,  This Federal Guidance, which is developed by working cooperatively with other
Federal agencies and the States, provides a common framework to ensure that the regulation of exposure
to ionizing radiation is carried out in a consistent and adequately protective manner. Furthermore, EPA
plays a role in the Interagency Steering Committee on Radiation Standards. This committee, which is
composed of Federal and State partners, including the Department of Energy, Department of Defense,
Department of Health and Human Services, Occupational Safety and Health Administration, the Nuclear
Regulatory  Commission and State radiation officials, coordinates the development  of radiation
protection policies. EPA also provides radiological technical expertise directly to Federal and State site
managers to more effectively assess, clean up and manage radioactively contaminated sites.

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       Under the National Contingency Plan and the Federal Radiological Emergency Response Plan,
EPA will assist the regions, states and other Federal agencies in responding to radiological emergencies.
EPA will provide technical assistance and guidance on all radiation Superfund Emergency Response
matters and will also offer field monitoring expertise, mobile radiochemical analysis, and dose and risk
assessment support, and develop Protective Action Guidance for use by State and local authorities in
protecting their populations. EPA will perform radiological lab analyses that provide data on radiation
levels and risks and will make enhancements to the Environmental Radiation Ambient Monitoring
System which collects data across all 50 states and the American Territories for drinking and ground
water samples, and air and milk analysis.

Brownfields

       The Brownfields National Partnership represents a significant investment in brownfields
communities from more than 20 Federal agencies. Federal resources include additional brownfields
pilots from EPA; redevelopment funds from the Department of Housing and Urban Development and
the Economic Development Agency; planning funds from the Economic Development Agency and job
training efforts  from  the Department of Labor and the National Institute of Environmental Health
Sciences.

       The centerpiece of the Brownfields National Partnership is the funding of 28 brownfields
showcase communities which began in FY 1998. The Showcase communities were selected to receive
brownfields assistance from various agencies including EPA, Department of the Interior, Department
of Justice, many of those previously mentioned, as well as General Services Administration and the
National Oceanographic and Atmospheric Administration. EPA and these other Federal agencies will
continue to provide active support for brownfields activities across  the country in  2002.  EPA's
commitment to the Showcase project was to award additional assessment and demonstration pilots and
fund an Intergovernmental Personnel Act staff in 27 of the 28 communities.  To augment the success
of the Brownfields National Partnership and its efforts to clean up and redevelop brownfields properties,
the Agency and its Federal partners will revitalize the partnership in FY 2002 by entering into new
Memoranda-of-Understanding.

       The Brownfields program also relies on partnership building with local government, State, and
non-government groups  to  leverage federal funding with private sector funding. As part of the
brownfields initiative, EPA will continue to provide outreach, curriculum development, job training, and
technical  assistance to community residents through cooperative agreements to community-based
organizations, community  colleges,  universities,  and private sector non-profit groups.  To  date,
Brownfields pilots have leveraged over 11,000 cleanup, construction and redevelopment jobs.  The
Agency also works with cities, states, federally recognized Indian tribes, community representatives, and
other stakeholders to implement the many commitments. Successful brownfields redevelopment is proof
that economic development and environmental protection go hand in hand.

       The Brownfields program has demonstrated that cleaning up abandoned  or  under-used
contaminated land can have significant payoffs.  Building on the pilot program, EPA will  continue to
partner with other Federal, state, local, and private sector efforts to restore contaminated  property to

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economic reuse. In 2002, EPA will provide funding to 38 new assessment pilot cooperative agreements
and support 38 existing brownfields assessment pilot cooperative agreements,  provide technical
assistance to 28 existing brownfields showcase communities, provide support to 29 new communities
to capitalize revolving loan funds,  provide brownfields communities  with targeted brownfields
assessments (TBAs), and award 10  additional job  training pilots.  The Agency will also provide
information and tools and develop model practices and policies to be used  by local governments,
developers, and transportation officials in their pursuit to redevelop brownfields properties.
       The Agency maintains a close relationship with the state agencies that are authorized to
implement the Resource Conservation and Recovery Act (RCRA) corrective action program. States are
expected to achieve the same level of Federal standards as the Agency, including annual performance
goals of human exposures and groundwater releases controlled.  As part of the state grant process,
Regional offices negotiate with the state the progress in the corrective action program toward the
objective of meeting the GPRA goals.

       Encouraging states to become authorized for the RCRA Corrective Action program remains a
priority. Currently, thirty-eight states and territories are authorized to implement the program. Several
additional states are expected to  gain authorization in the  next one  to two years.  States are also
encouraged to use alternate (non-RCRA) authorities to accomplish the goals of the corrective action
program. These include state Superfund and voluntary programs.

       The RCRA Corrective Action program also coordinates closely  with other Federal agencies,
primarily the Department of Defense and Energy, that have many sites in the corrective action universe.
Encouraging Federal Facilities to meet environmental indicators remains a top priority.

       Research

       The Agency expends  substantial effort coordinating with other agencies to conduct risk
management and exposure research.  These activities include work with the Department of Defense
(DOD)  in their Strategic Environmental Research and Development  Program (SERDP) and the
Environmental Security Technology Certification Program (ESTCP) programs. Other groups include
the Department of Energy (DOE) and the Office Health and Environmental Research (OHER). EPA also
conducts collaborative field demonstrations (e.g., through the SITE program) and laboratory research
with DOD, DOE, and the Department of Interior (DOT) (particularly the U.S. Geological Survey) to
improve characterization and risk management options for dealing with subsurface contamination.
Collaborations with external organizations allow the Agency the needed flexibility in dealing with
complex waste/site characterization and remediation problems and, consequently, improve the Agency's
ability to meet its objective of quicker and more cost-effective site cleanups.

       Characterization and monitoring research at EPA is also coordinated with other Agencies. The
unique controlled spill field research facility was designed hi cooperation with the U.S. Bureau of
Reclamation. Geophysical  research experiments  and  development of software  for subsurface

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characterization and detection of contaminants are being conducted with the USGS and DOE's LBNL
(Lawrence Berkeley National Laboratory).

      The USGS also has a number of programs, such as the Toxic Substances Hydrology Program,
that support studies related to contamination of surface and groundwaters by hazardous materials.
Groundwater modeling of MTBE is being conducted in collaboration with New York State activities to
clean up sites.  Also, Remediation Technology Development Forums (RTDF) on such topics as
bioremediation, metal treatment, and contaminated sediments have been formed to conduct collaborative
research programs addressing priority technical issues.

      The Agency is working with The National Institute of Environmental Health Sciences (NIEHS)
to advance fundamental Superfund research. NIEHS manages a large basic research program focusing
on Superfund issues.  The program is mandated in CERCLA, which establishes a "basic university
research and education program" in NIEHS, and further reinforced in the Superfund Amendments and
Reauthorization Act (SARA). Also in conjunction with a CERCLA mandate, EPA has established the
Agency  for Toxic Substances and Disease  Registry (ATSDR).  It provides  critical  health-based
information so that effective cleanup decisions can be made.

      The Rapid Commercialization Initiative (RCI) is a federal/state/private  cooperative effort to
expedite the application of new environmental technologies. The participating federal agencies include
DOC, DOD, DOE, and EPA. Participating states and state organizations include the  California
Environmental Protection Agency, Southern States  Energy Board, and the: Western  Governors
Association.

Statutory Authorities

•     Comprehensive Environmental Response,  Compensation, and Liability Act (CERCLA) as
      amended by the Superfund Amendments and Reauthorization Act of 1986,42 U.S.C. 9601-9657

«     Solid Waste Disposal Act as amended by Hazardous and Solid Waste Amendments of 1984 to
      the Resource Conversation and Recovery Act of 1976

•     Defense Base Closure and Realignment Act of 1990, and the  Defense Authorization
      Amendments and Base Realignment and Closure Act (BRAC) of 1990, Section 2905(a)(l)(E)
      (10 U.S.C. 2687 Note).

      Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)

      Oil Pollution Act 33 U.S.C.A.

•     Community Environmental Response Facilitation Act (CERFA)

      National Environmental Policy Act (NEPA)
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Atomic Energy Act of 1954, as amended, 42 U.S.C. 2011 et seq. (1970), and Reorganization
Plan #3 of 1970

Uranium Mill Tailings Radiation Land Withdrawal Act of 1978

Public Health Service Act, as amended, 42 U.S.C. 201 et seq

Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended, 42 U.S.C. 5121
etseq

Safe Drinking Water Act, 42 U.S.C. 300F et seq (1974)

Executive Order 12241 of September 1980, National Contingency Plan, 3 CFR, 1980

Executive Order  12656 of November  1988, Assignment of Emergency  Preparedness
Responsibilities, 3  CFR, 1988

Research

Comprehensive Environmental Response, Compensation, and Liabilities Act (CERCLA)

Response Conservation and Recovery Act (RCRA)

Oil Pollution Act (OPA)
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                              Environmental Protection Agency

            2002 Annual Performance Plan and Budget Congressional Justification

    Better Waste Management, Restoration of Contaminated Waste Sites, and Emergency
                                           Response

Objective #2: Regulate Facilities to Prevent Releases.

       By 2005, EPA and its federal, state, tribal, and local partners will ensure that more than 277,000 facilities
are managed according to the practices that prevent releases to the environment.
                                     Resource Summary
                                     (Dollars in thousands)

Regulate Facilities to Prevent Releases
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Leaking Underground Storage Tanks
FY 1999
Enacted
$148,989.7
$90,523.9
$6,731.0
$38,038.4
$34.9
FY 2000
Actual
$155,790.7
$94,669.4
$5,996.1
$38,934.6
$0.0
FY 2001
Enacted
$164,6323
$103,122.8
$8,002.4
$39,351.8
$0.0
FY 2002
Request
$163,691.0
$101,542.0
$8,994.1
$39,351.8
$0.0
    Oil Spill Response

    Hazardous Substance Superfund

       Total Workyears
$13,372.8      $15,877.8

  $288.7        $312.8
   785.8
851.0
          $14,013.6      $13,597.4

            $141.7        $205.7
791.9
790.9
                                        Key Programs
                                     (Dollars in thousands)
                                             FY1999
                                             Enacted
             FY2000
             Enacted
         FY2001
         Enacted
        FY2002
        Request
RCRA Permitting

RCRA State Grants

Waste Combustion
   $13,325.0     $15,724.4     $14,309.0    $16,889.0

   $27,493.7     $27,493.7     $27,433.2    $27,433.4

    $6,890.3      $4,438.3      $4,302.2     $5,423.1
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Risk Management Plans
Community Right to Know (Title III)
Underground Storage Tanks (UST)
UST State Grants
Oil Spills Preparedness, Prevention and Response
Hazardous Waste Research
EMPACT
Project XL
Common Sense Initiative
Civil Enforcement
Compliance Assistance and Centers
Rent, Utilities and Security
Administrative Services
Regional Management
FY1999
Enacted
$7,254.9
$4,544.7
$6,378.3
$10,544.7
$11,851.9
$6,167.9
$0.0
$1 12.6
$130.0
$1,225.3
$274.9
$0.0
$212.7
$0.0
FY2000
Enacted
$7,242.8
$4,797.5
$6,203.9
$1 1,944.7
$11,820.4
$5,379.8
$0.0
$117.4
$0.0
$1,298.5
$353.4
$6,644.8
$1,187.7
$530.5
FY2001
Enacted
$8,041.8
$5,207.8
$7,043.4
$11,918.4
$1 1,948.9
$6,990.0
$160.5
$126.4
$0.0
$1,264.7
$267.9
$8,350.2
$1,770.3
$1,681.9
FY 2002
Request
$7,643.9
$5,136.8
$7,190.2
$11,918.4
$11,943.5
$8,994.1
$0.0
$144.6
$0.0
$1,363.8
$266.3
$8,277.0
$1,605.0
$703.1
FY 2002 Request

Underground Storage Tank Prograrn

       The underground storage tanks (UST) program, in partnership with the states, prevents releases,
detects releases early in the event they occur, and addresses leaks from USTs containing petroleum and
hazardous substances. In FY 2002, the Agency's goal is to promote and enforce compliance with the
regulatory requirements aimed at preventing and detecting UST releases, and protecting our nation's
groundwater.    While the vast  majority of the 714,000 active tanks have the proper equipment,
significant work still remains to ensure UST owners and operators properly maintain and operate these
USTs. The Agency's primary role is to work with states to promote compliance with the spill, overfill,
and corrosion protection requirements, and ensure that the leak detection requirements continue to be
a national priority. The Agency' s role encompasses compliance for all federally regulated UST systems,
including those on private and public property, tribal lands, and federal facilities.

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       Continuing to improve owners' and operators' compliance with the UST regulations is one of
the Agency's national initiatives and a long-term goal of the UST program. The Agency will work with
states to achieve improved compliance and to develop compliance targets through FY 2005 with the goal
of achieving improved compliance in each state every year. The Agency will develop outreach and
education tools for owners and operators to help them stay in compliance, and assist customizing these
documents to meet State-specific needs.

       The Agency will continue to develop multi-site agreements with UST owners  to promote
compliance. The Agency expects to enter into three to five multi-site compliance agreements in FY
2002 with Federal, State, municipal, Tribal, or private UST owners.

       In F Y 2002, the Agency will evaluate UST system performance to determine how well existing
UST systems are preventing and detecting releases, and to identify any needed options for improving
performance.  While the Federal and State UST requirements have led to substantially improved UST
systems and substantially fewer new releases, some releases from newer tanks continue  to occur, as
reported by the states. Based on a 1998 EPA report to Congress, "National Water Quality Inventory,"
releases from USTs are the leading cause of groundwater contamination in the country, and the presence
of methyl tertiary butyl ether (MTBE) in gasoline increases the importance of preventing and rapidly
detecting releases.

       In 2002, the Agency will focus its efforts on further evaluating those components or procedures
which pose the greatest continued threat to human health and the environment through UST releases or
delayed detection of petroleum products, including MTBE. The Agency will also begin work to resolve
the remaining problems, such as contamination through MTBE releases, through outreach and education,
training and guidance, or pursuing regulatory improvements.   This work  will involve substantial
coordination with our state and industry partners, and will likely involve initiating and coordinating
various research efforts.

       EPA has the primary responsibility for implementation of the UST program in Indian Country.
This responsibility requires EPA regional offices to educate owners and operators about the UST
requirements, conduct inspection and enforcement activities, and maintain a database of information on
USTs located in Indian Country.  Grants available from the authorization in the Departments  of VA,
HUD & Independent Agencies Appropriations Act dated Oct. 21, 1998 will continue to help tribes
develop the capability to administer UST programs.

Chemical Emergency Preparedness and Prevention

       The Agency's chemical emergency preparedness and prevention program addresses the risks
associated with the manufacture, transportation, storage and use of hazardous chemicals to prevent and
mitigate chemical releases. The program also implements right-to-know initiatives, stemming from the
Emergency Planning and Community Right-to-Know Act, to inform the public about chemical hazards
and encourages actions at the local level to reduce risk.  All Americans benefit from an effective
chemical safety program because hazardous chemical substances are virtually everywhere and chemical
accidents are an ever-present danger. A1996 analysis estimated thatmore than400 releases of toxic and

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flammable chemicals resulted in two dozen fatalities, 1,000 injuries, thousands of evacuations, and more
than $1 billion in damages.

       Under the Clean Air Act chemical accident risk management program, Federal, State, and local
agencies and the general public have access to large amounts  of information on the presence of
chemicals in every community and the potential hazards those chemicals present. Section 112(r) of the
Clean Air Act requires an estimated 16,000 facilities to develop comprehensive risk management plans
(RMPs) and submit them to EPA, State agencies, and local emergency planning committees (LEPCs).
This number is fewer than the 36,000 EPA previously estimated. The reduction is the result of a revised,
lower estimate by EPA of covered facilities, as well as reports that many entities reduced their on-site
inventories which enabled them to fall beneath the threshhold reporting requirement.

       Each RMP identifies and assesses the hazards posed by on-site chemicals. It also provides a five-
year facility accident history and outlines an accident prevention program and an emergency response
plan. The statutory deadline for filing RMPs was June 1999.  While the numbers are still being tallied,
EPA estimates that most of those required to submit RMPs have done so. A program priority in 2002
will be to  increase compliance with RMP requirements, particularly  among the small  business
community. This will be done by providing a combination of technical assistance, outreach and training.

       Under the Chemical Safety Information, Site Security and Fuels Regulatory Relief Act, EPA and
the Department of Justice published regulations in 2000 governing public access to sensitive information
about the potential  off-site consequences (OCA)  of accidental chemical releases from industrial
facilities.   The rales address concerns that internet posting of such  data could increase the risk of
terrorist or criminal activity by providing the public with alternate methods to access important chemical
information about their communities. Some of these methods include: providing citizens with paper
copies of OCA data through Federal reading rooms; making available a read-only electronic access
system on RMP chemical hazard information; and creating a vulnerable zone indicator system that
allows the public to query an internet-based system to better understand some aspects of the risk
expressed by the OCA information.  These systems are in the early phases of implementation and are
expected to be fully operational in 2002.

       EPA, in partnership with states, will promote implementation of the RMP program during 2002.
The Agency believes individual states are best suited to implement the program because they benefit
directly from its success and have established relationships with the communities that may be at risk.
EPA also believes that as State officials see  their facilities achieve compliance, they will become
motivated to seek delegation. The Agency will continue to emphasize flexibility in how states will be
authorized to receive delegation and  eventually implement the RMP program themselves.  EPA will
work with states to secure agreements  to partially implement the RMP program and help them to develop
and manage individual program components. In addition to this effort, EPA will provide states a
combination of grant assistance, technical support, training, and other outreach services to help them
fully develop and receive delegation of the program. The Agency's 2002 goal is to persuade two
additional states to manage a RMP program which would bring the total number of authorized states to
seventeen.  EPA will also work to identify the next set of states that would benefit from running their
own accident prevention program.

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       Because the Clean Air Act mandates a RMP program for every State, EPA regional offices will
continue to manage RMP programs in those states that have not accepted delegation.  In 2002, the
Agency will perform its audit obligations through a combination of desk audits of RMP plans and on-site
facility inspections. Audit selection will be based upon several criteria, including accident history
patterns of noncompliance, types and quantities of chemicals, and geographic location.
                    States Implementing the RMP Program
      •  m
        &
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        CO
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20
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                 1998      1999      2000      2001
                                   :       Years
2002
2003
       Due to the complexity and large number of RMP audits, EPA is exploring a third party audit
program, where RMP facilities would be given the option to voluntarily undergo an audit by a qualified
third party auditor in exchange for certain regulatory incentives, such as lower future audit priority.
Financial incentives may also exist via the participation of insurance company representatives as third
party auditors. For the past several years, the Agency has funded and participated in research on market-
based and other innovative means of improving the environment. This research has demonstrated that
third party audits would create  numerous advantages for EPA, states,  participating facilities and
auditors, and the public.

       In an effort to help implementing agencies, states, and prospective third party auditors acquire
or improve skills  required to conduct audits, EPA has identified an RMP audit curriculum.  It is
currently developing two curriculum courses which will be completed and piloted in the third quarter
of FY 2001. The training will be offered extensively throughout the country in FY 2002.

       EPA will continue an initiative to analyze data contained in the RMPs. The Agency is examining
trends and patterns hi such areas as industry sector, facility size, geographic region, and chemicals.  In
particular, EPA is reviewing epidemiological methods, consisting of a process of cause and effect, to
analyze the RMP's five-year accident history data to explore accident risk factors and precursors.

       One  of EPA's vital  roles is to  help communities implement accident prevention programs.
LEPCs (established under the Emergency Planning and Community Right to Know  Act) serve as the
focal point for discussions on reducing chemical risks at the local level  Under the RMP program,
                                           V-65

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LEPCs take information on how facilities are reducing the risk of accidents and integrate it into their
emergency plans and community right-to-know programs. In 2002, EPA will support LEPC efforts bj
providing tools, technical assistance and guidance to better enable them to use the risk information. In
the regulatory area, the program expects to undertake the second phase of streamlining EPCRA's
reporting requirements and will complete regulatory action on changes resulting from a review of the
RMP chemicals list. EPA  will also continue  an initiative to improve and enhance emergency
preparedness and prevention in Tribal communities.

       The independent Chemical Safety Board (CSB) places responsibilities on the Agency with regard
to chemical safety and accident prevention. The same Clean Air Act provisions that established the CSB
requires EPA to respond to the Board's recommendations and provide support for its activities. EPA
has completed a memorandum of understanding with the Board in that delineates each Agency's role
and working relationship.  In FY 2002 EPA expects to conduct activities in the following areas:

•      Responding to CSB recommendations that result from investigations. EPA anticipates each CSB
       investigation may lead to several recommendations which may require program adjustments and
       modifications.   For example, EPA is  working with the Occupational Safety  and  Health
       Administration and the CSB on two recommendations associated with reactive chemical process
       safety arising from the Morton International chemical accident in New Jersey;

•      Gathering field information to understand how to prevent accidents and to support decision-
       making on CSB recommendations; and

•      Taking prevention actions and providing outreach to industry, government and the public to
       enhance application of chemical safety measures. The program will focus on lessons learned
       from accidents and issue case studies and chemical safety alerts to reduce the risk of future
       accidents.  In FY 2000, EPA produced and released one case study and four chemical safety
       alerts.

Oil Spills

       The goal of the oil spill program is to protect public health and the environment from hazards
associated with a discharge  or substantial threat of a discharge of oil or hazardous substances into
navigable waters, adjoining shorelines, and exclusive economic zones of the United States. Based on
data obtained from the National Response Center, which is run by the United States Coast Guard, each
year more than 24,000 oil spills occur in the United States, over half of them within the inland zone over
which EPA has jurisdiction.  On average, one spill of greater than 100,000 gallons occurs every month
from  approximately 450,000 EPA-regulated oil storage facilities and the entire oil transportation
network. Oil spills can contaminate drinking water supplies; cause fires and explosions; kill fish, birds,
and other wildlife; destroy habitats and ecosystems; and impact the  food chain. There can also be
serious economic consequences of oil spills because of their impact on commercial and recreational uses
of water resources.
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       The oil spill program prevents, prepares for, and responds to oil spills.  EPA protects inland
waterways through oil spill prevention, preparedness, and enforcement activities associated with the
450,000 non-transportation-related oil storage facilities EPA regulates.  In addition to its regulatory
responsibilities, EPA serves as the lead responder for the inland zone for all spills, including spills from
outside of its regulated universe, such as spills from pipelines, trucks, and other transportation systems
(regulated by the Department of Transportation).  EPA accesses the Oil Spill Liability Trust Fund
(OSLTF), administered by the United States Coast Guard, to fund site-specific spill response activities.

       The oil spill program establishes requirements to prevent and prepare for spills at oil storage
facilities subject to its regulations. The Oil and Hazardous Substances National Contingency Plan (NCP)
is the Nation's blueprint for the federal response to discharges of oil and hazardous substances.  EPA's
regulatory framework is  chiefly composed of the Spill Prevention, Control, and Coimtermeasures
(SPCC) regulation and the Facility Response Plan (FRP) regulation.

       All regulated oil storage facilities must prepare SPCC plans. These facilities, which range from
hospitals and apartment complexes storing heating oil to large tank farms, include any oil storage facility
with aggregate aboveground storage capacity greater than 1,320 gallons, or underground storage greater
than 42,000 gallons (not  otherwise subject to the UST program requirements).  Six hundred-eighty
additional facilities will be in compliance with SPCC provisions  in 2002 as a result of EPA's activities.
In addition, certain  high-risk  oil storage  facilities must prepare FRPs to identify and ensure the
availability of resources to respond to a worst case discharge, establish communications, identify an
individual with authority  to implement removal actions, and describe training and testing drills at the
facility. In 2002, EPA will review a small number of FRPs. These EPA reviews are triggered by a large
spill or a spill at a particularly high risk facility,

       EPA also develops area contingency plans (ACPs), in conjunction with area committees (State,
local and Federal officials in a given geographic location).  The ACPs detail the responsibilities of
various parties in the event of a response, describe unique geographical features of the area covered, and
identify available response equipment and its location.

       In 2002, EPA will continue efforts to revise and implement SPCC regulation. EPA is planning
to revise SPCC regulations, to reflect amore performance-based rule that emphasizes industry standards.
This approach would represent a comprehensive overhaul of the basic regulatory structure of the current
oil spill prevention program. The Agency anticipates undertaking a new and extensive outreach effort
to the regulated community about industry compliance once a new rule is promulgated. The Agency
must also train  its own workforce of inspectors and other staff to assist in compliance assistance and
enforcement of the anticipated revisions. In addition to these prevention efforts, EPA will continue its
preparedness efforts by focusing on development of ACPs.  Response  efforts include evaluating,
monitoring and/or responding to all known spills within the inland waterways.  Over the past five years
(1996-2000), EPA has received and evaluated approximately 40,000 oil spill notifications, served as lead
responders at approximately 534 oil spills, and shared response responsibility with another party at
approximately 867 responses.
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Resource Conservation and Recovery

       The Agency's Resource Conservation and Recovery Act (RCRA) program accounts for over
6,500 of the facilities addressed by this objective (number of facilities in 2002 does not include RCRA
Industrial D facilities). The RCRA program, working in partnership with states, reduces the risk of
human exposures to hazardous, industrial nonhazardous, and municipal solid wastes. Every year,
municipalities and industries generate approximately 230 million tons of municipal solid waste, 40.7
million tons of industrial hazardous waste (does not include wastewater), and more than 7,6 billion tons
of industrial nonhazardous waste. A combination of regulations, permits, and voluntary standards and
programs ensure, to the  greatest extent possible, safe management of these various wastes. New
contaminated waste sites, possibly Superfund sites, could result from mismanagement of these wastes
threatening nearby communities. In 2002, the focus of the RCRA program will be on reducing risk,
tailoring management practices to the potential risks of specific wastes, and creating efficiencies through
streamlining procedures and waste management procedures and systems.

       The RCRA program reduces the risk of exposures to dangerous hazardous wastes by establishing
a "cradle-to-grave" waste management framework. This framework regulates the handling, transport,
treatment, storage, and disposal of hazardous waste, ensuring that communities are not exposed to
hazards through improper management. The main vehicle for hazardous waste program implementation
is the issuance of RCRA hazardous waste permits which mandate appropriate controls for each site.
Significant progress has been made by hazardous waste management facilities having appropriate
controls in place to minimize the threat of exposure to hazardous substances. To date, 47 states, Guam
and the District of Columbia are authorized to issue permits.

       Strong state partnerships and the authorization of states for all portions of the RCRA program,
including regulations that address waste management issues contained in permits, is an important goal.
The Agency and me states have now permitted most operating land disposal sites (e.g., landfills), as well
as most commercial incinerators. Permits for operating storage and treatment facilities, as well as post-
closure facilities, comprise the largest remaining workload. In a rulemaking  designed to simplify the
permitting process for lower-risk treatment and storage facilities, the Agency is planning to propose, in
2001, a standardized permit. EPA anticipates promulgating a final rule in 2002. During 2002, the Agency
will provide technical assistance to states that are authorized to implement the RCRA program, including
site specific assistance, regulatory interpretation and program guidance. The Agency will also continue
implementation efforts in those states not authorized to conduct permitting activities.

       In addition to making changes in the permitting process, the Agency looks to improve all other
aspects of the RCRA program. The entry point to  this system is the identification of hazardous waste.
It is the Agency's responsibility to identify those wastes that, when mismanaged, may pose a substantial
risk to human health and the environment, as well as to identify those wastes for which burden should
be reduced because of low risk.

       In line with efforts to better calibrate risk and regulatory standards, the Agency is currently
developing two targeted exemptions from me hazardous waste mixture and derived-from rules: one for
certain solvents destined for wastewater treatment and discharge under the Clean Water Act, and another

                                           V-68

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for slagged combustion residues from hazardous waste combustors. Other targeted exemptions are being
assessed for later development, and the Agency will consider ways to streamline the current de-listing
process. In addition, EPA is continuing to develop a hazardous waste identification rule (HWIR),
focusing on reducing the uncertainty associated with the exposure assessment model that would be used
to identify risk-based exemption levels. In 2002, EPA will revise the 3 MRA (Multimedia, Multipathway,
Multireceptor Risk Assessment) model in preparation for review by the Science Advisory Board.

       In 2002, the Agency's waste identification program will continue assessing whether releases of
certain industrial wastes are capable of posing a substantial hazard to human health or the environment.
The Agency intends to finalize two separate rulemakings in 2002 that will identify whether or not
specific wastes from the inorganics manufacturing sector and the paint manufacturing sector warrant
being listed as hazardous waste.

       In 2002, the Agency will continue to investigate the technical and implementation concerns that
both hazardous waste generators and regulators have encountered over the years regarding waste
identification. The Agency is reviewing the desirability and feasibility of pursuing efforts to supplement
its standards with supplemental guidance and plans to update its regulations to reflect new references
to Department of Transportation regulations. The Agency will also continue its ongoing examination
of waste leaching and the role of leaching potential in identifying wastes as hazardous and in
determining the effectiveness of treatment technologies and test methods for measuring leaching
potential.

       The next step in waste management is transportation from generator to a treatment and disposal
facility, a step regulated and controlled by the hazardous waste manifest system. As part of the Agency's
continuing efforts to streamline RCRA procedures and systems, EPA plans to finalize major changes
to the hazardous waste manifest system in 2002.  A proposal scheduled to be issued in 2001 includes
significant changes to the hazardous waste manifest, the form which documents that off-site shipments
of hazardous waste in fact arrived at permitted facilities, in particular allowing the waste tracking and
data collection features of the manifest to be automated. The form revision and automation proposals
could greatly reduce the paperwork burdens onwaste handlers and authorized states, while improving
the effectiveness of tracking waste shipments.

       Treatment and disposal of hazardous waste is the primary area for many changes the Agency is
making to the RCRA program. Combustion  is one typical method of  treatment of hazardous waste.
Hazardous waste incinerators and cement and lightweight aggregate kilns that burn hazardous waste are
now covered by a maximum achievable control technology (MACT) rule and will need a Title V (air)
permit The Agency estimates that most facilities will demonstrate compliance with the MACT standards
and transition from RCRA to Clean Air Act permitting in 2001 and 2002 and expects technical
assistance to be critical during this time. In 2002, the Agency is planning to propose another MACT rale
to cover emissions from hazardous waste burning boilers and halogen acid furnaces.

       In 2002, the Agency is planning to arrange its approach to the management of cement kiln dust.
These proposed regulations were developed to provide substantial flexibility in how cement wastes are
managed to ensure protection of human health and the environment.

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       To assure that treated wastes are managed safely, the Agency will work to reduce long-term risks
from particularly "hard-to-treat" wastes. These include mercury, arsenic, and other toxic metals, botl
in process wastes as well as in contaminated soils. In 2001, the Agency will propose improvements on
mercury treatment and management to better enable mercury stockpiles to  be safely disposed.

       Sometimes  hazardous wastes are treated and reused in other products.  In 2002, the Agency
intends to complete its regulatory changes addressing potential risks associated with the use of hazardous
waste in  fertilizers. In 2000, EPA proposed revisions to existing RCRA  standards for recycling of
hazardous waste in fertilizers, to provide a more consistent and appropriate regulatory framework for
this practice, while ensuring protection of human health and the environment.

       The Agency collaborates with other Federal agencies, states, tribes and industry to promote safe
handling of wastes from mining, oil and gas production, and electric utilities industries. In 2002, the
Agency plans to develop a proposal to issue Subtitle D regulations for placement of coal combustion
wastes in landfills, surface impoundments, and in mines. Our primary focus will be on large utilities for
which we currently have a substantial amount of relevant data. The Agency also plans to continue to
gather additional data on industrial burners of coal, as well as on the potential risks and techniques for
addressing unacceptable risks associated with minefilling of coal combustion ash.

       The Agency also works to reduce risks from industrial nonhazardous waste, also known as
Industrial D waste. Manufacturing facilities generate and dispose of  7.6 billion tons of industrial
nonhazardous waste each year. Partnering with State agencies and industry, EPA issued draft guidelines
for management of industrial solid wastes in 2000-  The guidelines address a range of issues related tc
the management of industrial nonhazardous waste, including groundwater contamination, air emissions
resulting from solid waste disposal, and alternatives to waste disposal, such as recycling and waste
prevention. The recommendations in these voluntary guidelines incorporate substantial flexibility for
a broad range of approaches for dealing with a diverse set of waste streams which pose varying degrees
of risk in various site-specific situations. In 2002, in conjunction with the states and a focus group
comprised of the states, industry, and the environmental community, the Agency  will finalize and issue
guidelines on planning, designing, constructing, and operating new solid waste management facilities
at industrial sites that generate nonhazardous solid wastes. Following issuance of the guidelines, EPA
will begin efforts to foster implementation.

       In 2001, the Agency completed the review of its solid waste landfill  criteria to identify areas for
improvement and announced those areas for which it will consider revising regulations to provide
additional flexibility for small landfills and others so that compliance is less costly and easier to achieve.
Based on this review in 2002, the Agency plans to initiate appropriate regulatory revisions.

       Waste management, particularly issues surrounding disposal in open dumps, is a significant
environmental concern for tribes. A1997 report to Congress by the Indian Health Service identified 143
high-threat open dumps on tribal lands. In 2001, the Agency began the third year of the interagency
program directed toward closing open dumps and/or ensuring that those municipal solid waste landfills
in tribal country that wish to remain operating comply with regulations  and work toward the most
efficient  and effective solutions that result in the greatest positive environmental impact. Agencies

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participating in this program include the Bureau of Indian Affairs, Indian Health Service, and others. The
Agency will also assist tribal governments in building capacity  for hazardous  waste program
management.

       In addition to the more specific program improvements already described, EPA looks for
opportunities to move the RCRA program into the future in innovative ways. In 2002, the Agency will
continue to monitor the success of innovative, site-specific projects. These individual facility projects
experiment with alternative regulatory requirements that may yield  superior environmental results.
Currently there are more than 20 innovative projects with RCRA components that have been developed
jointly by the Regional offices and EPA headquarters, such as one to experiment with more flexible,
performance-based regulatory requirements for industries (e.g., public utilities  and laboratories) that
generate small quantities of hazardous wastes at numerous locations. Other RCRA  related projects
include one to allow flexible regulatory approaches to treating hazardous wastes that result in reduced
releases of pollutants to the environment and one to provide states with latitude in easing certain
hazardous waste regulatory requirements for environmentally responsible facilities. In 2002, the Agency
will assess whether to develop more generally applicable reforms based on successful projects.

       Better technology also improves the entire RCRA program. In 2002,  the Agency plans to
continue to move forward in its redesign of information management within the waste program under
the Waste Information Need (WIN/Informed) Initiative. Working with state partners, the Agency has
been engaged in a multi-year review of the RCRA waste management needs in an effort to provide
improved access to hazardous  waste information, reduce burden to data providers and to better match
information technology. During 2002, the Agency will implement enhancements and will determine
what new information support improvements will reflect site verification and reporting feasibility studies
to be completed in 2001.

Radiation Waste Management. Clean Materials, and Emergency Response

       The Radiation program will continue its efforts to address excessive radiation exposure to the
public by setting priorities in waste management, clean material, and emergency response. EPA will
certify that all radioactive waste shipped by the Department of Energy (DOE) to the Waste Isolation Pilot
Plant (WIPP) is permanently disposed of safely and according to EPA standards. The Agency will also
implement the clean materials program by working with the Department of State, Customs Service, other
Federal agencies, state agencies, and international organizations to deal with metals and finished
products entering the country suspected of having radioactive contamination.  Developing emergency
planning criteria and coordinating Agency support to other Federal agencies and the states response to
radiological emergencies will be conducted.  EPA will also evaluate human health and environmental
risks from radiation exposure and provide a basic understanding of the biological effects of radiation.
Finally, EPA will implement  its strategy to address Technologically Enhanced Naturally Occurring
Radioactive Material issues in conjunction with other Federal agencies, states, tribes, industry, and
environmental groups.
                                           V-7.1

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       Research

       Research to support the Agency's objective of managing facilities to prevent contaminant
releases into  the  environment is conducted  in two major areas: multimedia  science and waste
management.

Multimedia Science

       In line with efforts to better estimate risk and regulatory standards, EPA is developing: a series
of targeted exemptions for low-risk waste; a multimedia, multi-pathway exposure and risk assessment
model to identify other low-risk waste streams; and opportunities to streamline the de-listing process.

       EPA estimates that these risk-based efforts could save hundreds of millions of dollars annually.
The  Multimedia,  Multi-pathway,  and Multi-receptor Exposure and Risk Assessment (3MRA)
methodology has been developed and is being improved to provide an important component of this new
regulatory approach.  Multimedia-based research is related to the development of allowable national
"exit levels" (levels below which a waste or waste stream is excluded from regulation under RCRA
Subtitle C) based on sound scientific data and models. The research is intended to develop a systems
approach to modeling and data management.

       The main research areas to improve the Multimedia, Multipathway, and Multi-receptor Exposure
and Risk Assessment (3MRA) technology include:

       1) collecting support research activities focused on improving, and making more realistic, some
       of the existing  physical, chemical, and biological processes algorithms found  in the current
       system,

       2) adapting the methodology for use at larger spatial scales, or for use in concert with larger
       spatial scale modeling systems,

       3) enhancing the technology with more comprehensive uncertainty assessment capabilities, and

       4) implementing a comprehensive independent testing and validation program.


       A major product of FY 2002 will be a revised 3MRA modeling system and documentation for
the upcoming regulatory proposal.
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Waste Management

      In terms of waste management, a number of significant technical problems remain.  Some
hazardous waste disposal  techniques need to be reevaluated and improved to ensure releases are
minimized. Improved techniques to actually predict such releases need to be developed. In the area of
municipal and solid waste disposal, an increasing number of companies are starting to design landfill
and bioreactors  to save space and reduce long-term liabilites. However, the effectiveness of such
systems and their environmental impacts still have many uncertainties.

      Waste management research will be conducted to  improve ways to manage both solid and
hazardous wastes. This includes development and/or evaluation of more cost-effective waste treatment
and containment processes. In FY 2002, research on bioreactors will continue, along with studies of the
design and effectiveness of RCRA and municipal waste containment units. Bioreactor research will
study ways to make such systems more effective, while also determining how to monitor and minimize
relases to the environment through air and groundwater. In addition, research on metal bearing, hard-to-
treat RCRA wastes, and the teachability of treated hazardous wastes will continue.  Technical support
for the cleanup of RCRA waste management facilities will  be expanded in FY 2002. This expansion
will help answer complex scientific questions concerning appropriate processes for RCRA Corrective
Action.

      Also, as part of waste management, hazardous waste combustion research addresses incinerators
and industrial combustion systems burning waste.   Emissions from these facilities remain a public
concern and a numbers of uncertainties about them exist.  Emissions characterization and control of
toxic contaminants such as dioxin, furans, mercury, lead, cadmium, products of incomplete combustion
(PICs), and other combustor risk issues need further research to reduce uncertainties related to waste
combustion and provide protection to the public and the environment.  The focus of work is on
determining how to reduce emissions through system design and operation changes, as well as through
the use of add-on controls.  In FY 2002, studies of factors influencing the formation of dioxin and other
PIC's in boilers  will continue. Research on selection of PIC surrogates, PIC measurement techniques,
and bench-scale research on factors influencing PCB formation will also continue.
FY 2002 Change from FY 2001 Enacted

EPM:

•      (+$1,786,700) This increase reflects an increase in workforce costs.

»      (-$316,200) Redirection of risk management program (RMP) and Emergency Planning and
       Community Right-to-Know (EPCRA) programmatic resources to cover anticipated FY 2002
       workforce costs.
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       (-$1,696,300) The FY2002 Request is $ 1,696,3 00 below the FY 2001 Enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are not
       included in the FY 2002 President's Request.

       (-$400,000) Decrease to RCRA programmatic funds to support agency's cost of living allowance
       requirements.

       (-$902,300) Redirected resources to RCRA program in Goal 4 that reflects adjustments to the
       working capital fund, completion of surface impoundment study and completed rule makings.

       (-$400,000) Decrease to program support and evaluation as a result of streamlining ongoing
       processes within  RCRA.

       (-9.1 FTE) Reduction in work years from the prevention of releases from solid and hazardous
       waste management facilities.
       Research

S&T
       (+$ 1,811,300, +12.6 FTE) This increase to waste management reflects a redirection from Goal
       5, Objective 1,  soil and sediment remediation, to Goal 5, Objective 2, waste management
       research, specifically to risk management technical support and subsurface processes research.
       While this represents a shift out of soil and sediments remediation research under the Science
       and Technology Appropriation in Goal 5, Objective 1, substantial effort in this area is supported
       under the hazardous substance research program under that objective.  Also included in this
       increase is a redirection from the Environmental Technology Verification (ETV) program in
       Goal 8 Objective 4, which represents a planned reduction to that program. The resources will be
       used to fund research that examines improved ways to manage  solid and hazardous waste,
       including developing and evaluating more cost-effective alternatives.
Annual Performance Goals and Performance Measures

Tribal Prevention Assistance

In 2002     EPA will survey tribes to identify chemical facilities subject to Emergency Planning and
          Community Right to Know Act (EPCRA) requirements and tribal emergency preparedness
          programs in place.

In 2002     EPA will provide support and funding to tribes participating in the multi-agency Tribal Open
          Dumb Cleanup Project, which will ultimately result in closing or upgrading of existing high threat
          open dumps on Indian Lands.

In 2002     EPA will evaluate RCRA Subtitle C management needs for an additional 36 Federally recognized
          tribes.
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In 2001      EPA will provide support and funding to tribes participating in "the multi-agency Tribal Open
            Dump Cleanup Project, which will ultimately result in closing or upgrading of existing high threat
            open dumps on Indian Lands.

In 2001      EPA will evaluate RCRA Subtitle C management needs for 36 Federally recognized tribes.

In 2001      EPA will develop a strategy to promote development of tribal chemical emergency preparedness
            programs.

Performance Measures:


Develop surveys and begin data collection.

Development of draft strategy.

Tribes evaluated.

Open dumps assessed.

Open dumps upgraded to comply with Subtitle
D landfill standards.

Open dumps with contents transferred and
protections against future dumping in place.
FY1999 FY2000
Actuals Actuals




FY2001
Estimate

1
36
no target
FY 2002
Request
1

36
no target

data gathering
draft strategy
evaluations
assessments
                                                                  no target    no target    upgrades
                                                                  no target    no target    sites

Baseline:    EPA is currently working to assess the number of tribes with chemical hazards on tribal lands.

UST Compliance

In 2002      EPA and its state and tribal partners will achieve levels of 75% UST compliance with EPA/State
            leak detection requirements; and 96% of UST compliance with EPA/State December 22, 1998
            requirements to upgrade, close or replace substandard tanks.  (EPA is in the process of changing
            the way it measures compliance, including changing from a per tank, to a per facility basis.)

In 2001      EPA and its state and tribal partners will achieve levels of 70% UST compliance with EPA/State
            leak detection requirements; and  93% UST compliance with EPA/State December 22, 1998
            requirements to upgrade, close or replace substandard tanks. (EPA is in the process of changing
            the way it measures compliance, including changing from a per tank, to a per facility basis.)

In 2000      Goal not met. 86% of USTs demonstrated compliance with the 1998 requirements to upgrade,
            close or replace substandard tanks. The original goal was based on equipment changes to UST
            systems.  However, the 86% percent reflects operational  compliance  as well as equipment
            changes.
Performance Measures;
Percentage of USTs in compliance with the
1998 deadline requirements.

Percentage of USTs in compliance with the
leak detection requirements.
                                           FY 1999
                                           Actuals
FY 2000
Actuals
                                                      86%
FY 2001
Estimate
            93%
                                                                  70%
FY2002
Request


96%


75%
                       compliance


                       compliance
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Baseline:   EPA has worked with stakeholders to develop new measures that will account for significant
           operational compliance.  Data are being collected in FY 2001 and a new baseline should be
           available in FY 2002.

Emergency Planning

In 2002    90% of facilities will be submitting RMPs, 2 states (for a cumulative total of 17) will be
           implementing accident prevention programs and 300 audits will be completed on RMP plans to
           determine completeness and accuracy.

In 2001    85% of facilities  will be submitting RMPs,  5 states (for a cumulative total  of 15) will be
           implementing accident prevention programs, and 300 audits will be completed on RMP plans to
           determine completeness and accuracy.

In 2000    EPA met its goal by documenting compliance with RMP requirements at 75%  of the covered
           facilities, facilitating 3 additional states in implementation of the RMP program and conducting
           266 RMP facility audits.

In 1999    In FY99, the electronic system for collecting and establishing baseline data on RMP facilities was
           completed. The total number of facilities which have submitted RMPs is 14,405. Additionally,
           2 States are implementing a prevention program.

Performance Measures:                      FY 1999    FY2000    FY2001    FY2002
                                          Actuals     Actuals     Estimate    Request

Percentage of facilities which have submitted RMPs.                    75%        85%        90%       fefe

RMP audits completed.                                  266        300        300         audits

Number of states implementing accident
prevention programs.                       2352           states

Number of LEPCs implementing the Clean
Air Act 112 (r) chemical RMP-
prevention programs                        not available                                    LEPCs

Baseline:   By FY 2000, 75% of facilities were compliant with RMP requirements and  10 states were
           implementing accident prevention programs.

Oil Spill Prevention Compliance

In 2002    680 additional facilities will be in compliance with the Spill  Prevention, Control and
           Countermeasure (SPCC) provisions of the oil pollution prevention regulations, for a cumulative
           total of 3,112 facilities since 1997.

In 2001    680 additional facilities will be in compliance with  the Spill Prevention,  Control and
           Countermeasure (SPCC) provisions of the oil pollution prevention regulations, for a cumulative
           total of 2,432 facilities since 1997.

In 2000    EPA exceeded its goal, with an  additional 678 facilities in compliance with spill prevention,
           control and Countermeasure (SPCC) provisions of the oil pollution regulations, for a cumulative
           total of 1,752 facilities in compliance since 1997.
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In 1999     EPA exceeded its goal by bringing 774 facilities into compliance with SPCC provisions.

Performance Measures:                      FY 1999    FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Facilities in SPCC compliance.                774        678         680         680         facilities

Baseline:    1,752 facilities were in compliance in FY 2000.

Oil Spill Response

In 2002     Respond to or monitor all significant oil spills in the inland zone.  EPA typically responds to 70
            oil spills and monitors 130 oil spill cleanups per year.

In 2001     EPA will respond to or monitor all significant oil spills in the inland zone.   EPA typically
            responds to 70 oil spills and monitors 130 oil spill cleanups per year.

In 2000     EPA exceeded its goal by responding to 176 oil spills and monitoring response at  192 oil spills.

In 1999     EPA exceeded its goal by responding to 94 oil spills and monitoring response at 229 oil spills.

Performance Measures:                      FY 1999    FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Oil spills responded to by EPA.               94          176         70          70          spills

Oil spills monitored by EPA.                  229        192         130         130         spills

Baseline:    EPA typically responds to 70 oil spills and monitors 130 oil spill cleanups per year.

Hazardous Waste Combustion

In 2002     Develop the Phase II rale for reducing hazardous waste combustion facility emissions of dioxins,
            furans and particulate matter under the Clean Air Act.

In 2001     Develop the Phase II rule for reducing hazardous waste combustion facility emissions of dioxins,
            furans and particulate matter under the Clean Air Act.

In 2000     EPA completed 1) the industry scoping study and report in development of the Phase II rule for
            reducing hazardous waste combustion facility emissions of dioxins, furans, and particulate matter
            under the Clean Air Act, and 2) the initial analysis of EPA databases and solicitation of industry
            comment.

In 1999     EPA promulgated Phase I of the waste combustion rale.

Performance Measures:                      FY 1999    FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Complete industry scoping studies
and issue report.                                        1                                   report

Complete initial analysis of existing
EPA databases solicit industry comment.                   1                                   analysis


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Promulgate Phase 1 of Waste
Combustion Rule                            30-Sep-1999                        rule making

Develop Phase II of the Waste
Combustion Rule.                                                    1                       rule making

Promulgate a proposal for Phase II of the
Waste Combustion Rule.                                                         1           rulemaking

Baseline:    The Phase I rale for reducing hazardous emissions of dioxins, furans, arid particulate matter under
            RCRA was promulgated in 1999.

Municipal Solid Waste Facilities

In 2002     83% (180 for a cumulative total of 2,940 out of 3,536) of existing RCRA municipal solid waste
            facilities in states  will have approved controls in place to prevent dangerous releases to air, soil,
            groundwater, and surface water.

In 2001     78% (160 for a cumulative total of 2,760 out of 3,536) of existing RCRA municipal solid waste
            facilities in states  will have approved controls in place to prevent dangerous releases to air, soil,
            groundwater, and surface water.

In 2000     FY 2000 Data is not available for the percentage of existing RCRA municipal solid waste facilities
            in states will have approved controls in place (goal was 74%).  A preliminary survey is under way
            and we anticipate that data will be available by September 2001.

In 1999     Data not available.  This is not a mandatory reporting  element for states, and EPA is currently
            negotiating with states and state associations to determine the best means to obtain the data.  We
            anticipate data by the end of 2000.

Performance Measures:                       FY 1999     FY2000    FY 2001    FY2002
                                            Actuals      Actuals      Estimate    Request

Percent of municipal solid waste landfills
(MSWLFs) with approved controls.            not avail.    Not Avail.   78%        83%        MSW landfills

Baseline:    The current baseline of 3,536 was obtained in the 1996  Municipal Solid Waste Landfill Facility
            survey:  A new survey which will account for the number of facilities with approved controls in place
            is underway and will be completed in October 2001.

RCRA Facility Standards and Compliance

In 2002     82 additional hazardous waste management facilities will have approved controls in place to prevent
            dangerous releases to air, soil, and groundwater, for a total of 71% of 2,750 facilities.

In 2001     82 additional hazardous waste management facilities will have approved controls in place to prevent
            dangerous releases to air, soil, and groundwater, for a total of 68% of 2,750 facilities.

In 2000     EPA exceeded its goal by establishing approved controls for 308 additional RCRA hazardous waste
            management facilities, for a cumulative total of 1,802 facilities or 62% of the 2,900 facility baseline.
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In 1999     149 RCRA hazardous waste management facilities were determined to have permits or other controls
            in place.

Performance Measures:                      FY1999    FY2000     FY2001    FY2002
                                           Actuals     Actuals      Estimate    Request

RCRA hazardous waste management
facilities with permits or other
approved controls in place.                   149                                           facilities

Propose final streamlined permitting standards              0           1                       rulemaking

Percent RCRA hazardous waste
management facilities with permits
or other approved controls in place.                        62%        68%       71%        facilities

Promulgate final streamlined
permitting standards.                                                           1           rulemaking

Baseline;    EPA established a baseline of approximately 2,750 facilities in October 2000.

Ensure WIPP Safety

In 2002     Certify that 6,000 55 gallon drums of radioactive waste (containing approximately 18,000 curies)
            shipped by DOE to the Waste Isolation Pilot Plant are permanently disposed of safely and according
            to EPA standards.

Performance Measures:                      FY 1999    FY2000     FY2001    FY2002
                                           Actuals     Actuals      Estimate    Request

Number of 55-Gallon Drums of Radioactive
Waste Disposed of According to EPA Standards                                   6,000       Drums

Baseline:    The Waste Isolation Pilot Plant (WIPP) near Carlsbad, NM was opened in May 1999 to accept
            radioactive transuranic waste. By the end of FY 2001, approximately 7,000 (cumulative) 55 gallon
            drums will be safely disposed. In FY 2002, EPA expects that DOE will ship an additional 6,000 55
            gallon drums of waste to WIPP so that 1.5 percent of the planned waste volume, based on disposal of
            860,000 drums over the next 40 years, is permanently disposed of safely and according to EPA
            standards. Number of drums shipped to the WIPP facility on an annual basis is dependent on DOE
            priorities and funding. EPA volume estimates are based on projecting the average shipment volumes
            over 40 years with an initial start up.

Research

Scientifically Defensible Decisions for Active Management of Wastes

In 2001     Provide technical information to support RCRA regulatory development for waste identification,
            containment, and  combustion.

In 2000     EPA provided targeted research and technical support for the active management of wastes by
            preparing nine provisional toxicity values from 38 feasibility assessments on 25 waste constituents.
            In addition, EPA  published the journal article on factors that control Hg speciation in mcinerators.
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In 1999     Completed a report on the software modeling system  for automating the Hazardous Waste
           Identification Rule (HWIR) assessment and completed a Beta-II version of this system.

Performance Measures:                     FY1999    FY2000   FY2001    FY2002
                                        Actuals     Actuals    Estimate    Request

HWIR Human and Ecosystems Site
(Generic) Exposure-Risk Assessment
Screening Model, peer reviewed and
applied to HWIR listed chemical exit levels     30-Sep-1999

Beta version for comprehensive modeling system.           1                               system

Develop provisional toxicity values for 10 - 20
waste constituents that do not have values
describing their dose-response
toxicological properties.                                30-Sep-2000                      values

Provide journal article on factors that control
Hg speciation in incinerators                                      1                     article

Update the HWIR99 modeling methodology
for delisting hazardous wastes, in response
to public comments on 1999 Federal Register Notice                              1          update

Baseline:   Both the Agency and the private sector have worked for at least a decade to reduce the volume of
           wastes to be managed and to reduce the risks of the related waste management systems. In recent
           years, research has focused on support to Agency initiatives on classifying wastes for their appropriate
           management and disposal (e.g., HWIR, de-listing, listing), to improve the ongoingrequirement for risk
           assessments as part of Agency and stakeholder decision-making, and to reduce the uncertainties in risk
           management alternatives, particularly combustion. HWIR development is being extended to a wider
           universe of waste issues and combustion remains a priority, particularly for controlling hazardous
           emissions under different boiler operating conditions.
Verification and Validation of Performance Measures

Performance Measure: Percentage of USTs in compliance with the 1998 deadline; Percentage of USTs
in compliance with the leak detection requirements.

Performance Database: The Office of Underground Storage Tanks (OUST) does not maintain a national
database.

Data Source: Designated State agencies submit semi-annual progress reports to the EPA regional offices.

QA/QC Procedures: EPA regional offices verify and then forward the data to the OUST Headquarters.
OUST Headquarters staff examine the data and resolve any discrepancies with the regional offices. The data
are displayed on a region by region basis, which allows regional staff to verify their data,

Data Quality Review: None.

                                                 V-80

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Data Limitations: Percentages reported are sometimes based on estimates and extrapolations from sample
data and rely on accuracy and completeness of state records.

New/Improved Data or Systems: None.

Performance Measure:  Percent of RCRA hazardous waste management facilities with permits or
other approved controls in place.

Performance Measure:  Percent of RCRA hazardous waste management facilities with permits or other
approved controls in place.

Performance Database: The Resource Conservation Recovery Act Information System (RCRAInfo) is the
national database which supports EPA's RCRA program.  RCRAINFO contains information on entities
(generically referred to as "handlers") engaged in hazardous waste (HW) generation and management
activities regulated under the portion of RCRA that provides for regulation of hazardous waste. RCRAInfo
has several different modules, including status of RCRA facilities in the RCRA permitting universe.

Data Source: EPA regions and authorized states enter data on a rolling basis.

QA/QC Procedures:  States and Regions, who create the data, manage data quality control related to
timeliness and accuracy (i.e. the environmental conditions and determinations are correctly reflected by the
data). Within RCRAInfo the application software enforces structural controls which ensure that high-
priority national components of the data are properly entered. RCRAInfo documentation, which is available
to all users on-line, provides guidance to facilitate the creation and interpretation of data. Training on use
of RCRAInfo is provided on a regular basis, usually annually, depending on the nature of systems changes
and user needs.

Data  Quality Review:   GAO-1995 Report  of EPA's Hazardous Waste Information System reviewed
whether national RCRA information systems support meeting the primary objective of helping EPA and
states manage the HW program. Recommendations coincide with ongoing internal efforts (WIN/Informed)
to improve the  definitions  of data collected,  ensure  data collected provides critical information  and
minimize burden on states.

Data Limitations: None identified.

New/Improved Data or Systems:  EPA has successfully implemented new tools for management of
environmental information to support federal and state programs,  replacing  the old data systems (the
Resource Conservation and Recovery Information System and the Biennial Reporting  System) with
RCRAInfo The RCRAInfo system allows for tracking of information on the regulated universe of RCRA
hazardous waste handlers, and characterization of facility status,  regulated  activities, and compliance
histories. The system also captures detailed data on the generation of hazardous waste from large quantity
generators and on waste management practices from treatment, storage, and disposal facilities. RCRAInfo
is web accessible, providing a convenient user interface for Federal, state and local managers, encouraging
                                            V-81

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development of in-house expertise for controlled cost, and sports the ability to use commercial off-the~sh*lf
software to report directly from database tables.

The Agency has spent considerable time reviewing data associated with permitting at RCRA hazardous
waste facilities. During 2000  the Agency finalized its facility universe baseline.

Performance Measure: Number of drums of radioactive waste disposed of according to EPA
standards

Performance Data: Department of Energy Waste Isolation Pilot Plant (WIPP) Database

Data Source: Department of Energy

QA/QC Procedures: NA - Data is obtained from external source

Data Limitations: Database relies on the actual number of drums shipped by DOE and placed in the WIPP
facility.

Before the waste can be shipped to the WIPP, EPA must approve the waste characterization controls at the
waste generator facilities and quality assurance measures for waste identification activities. EPA conducts
frequent independent inspections at waste generator sites to verify continued compliance with radioactive
waste disposal standards. Since 1998, EPA has completed over 30 inspections at the DOE waste generator
sites prior to shipment of waste to the WIPP facility. EPA conducts audits or inspections at waste geneT   1
sites to determine if DOE is properly tracking the waste to ensure that it adheres to specific waste compow»it
limits. EPA also inspects the WIPP facility to verify continued compliance with EPA's radioactive waste
disposal standard.

Once EPA approves a waste generator site, the number of drums shipped to the WIPP facility on an annual
basis  is dependent on DOE priorities and funding. EPA volume estimates are based on projecting the
average shipment volumes over 40 years with an initial start up.

New/Improved Data or Systems: None
Coordination with Other Agencies

       State UST programs are key to achieving the objectives and long-term strategic goals. EPA relies
on state agencies to implement the UST program, including developing core program capabilities and
promoting and enforcing compliance with the UST requirements.

       Because many agencies at all levels of government have authority to regulate and implement aspects
of hazardous materials safety programs, coordination is essential for the success of EPA initiatives. On the
chemical accident preparedness and prevention side, inter-agency coordination remains a critical factor hi
accomplishing the goals of the Risk Management and EPCRA programs. The Agency's role in carrying o.i\t
                                                                                            j

                                            V-82

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these initiatives is to provide  leadership and support.  EPA works in partnership with states and local
governments and other organizations to promote actions to reduce risk. We also provide technical assistance
and tools to states and LEPCs to better utilize the information on chemical hazards and risks available to
them. In addition, through the rulemaking process, EPA works closely with our Federal partners (OSHA,
DOT) and with states to ensure compatibility with existing accident preparedness and prevention initiatives.
Close coordination  and a cooperative  working relationship is also required to effectively meet our
responsibilities in the Chemical Safety program, most importantly where they involve the Chemical Safety
Board (CSB). EPA has completed a memorandum of understanding with the CSB which further delineates
this working relationship.

       Under the Oil Spill program, EPA works with other Federal agencies such as the United States Fish
& Wildlife Service, National Oceanographic and Atmospheric Administration, United States Coast Guard,
Federal Emergency  Management Agency, Department of the Interior, Department of Transportation,
Department of Energy, and other Federal agencies and States, as well as with local government authorities
to develop area contingency plans. The Department of Justice also provides assistance to agencies with
judicial referrals when enforcement of violations becomes necessary. EPA and the United States Coast
Guard work in coordination with other Federal authorities to implement the National Preparedness for
Response program.

       The Agency maintains a close partnership with state agencies to implement the RCRA Permitting
and Municipal Solid Waste (MS W) landfill programs. States are to achieve the same level of protection as
the Agency, including the annual performance goals of controls at hazardous waste facilities and MSW
landfills. Regional offices negotiate with the state agencies regarding goals and performance achieved with
the grant funds. For examples, Regions may negotiate with the state agencies the number of facilities that
are permitted in a year resulting in approved controls in place at facilities. The Agency will continue our
partnership effort with  state agencies by providing technical assistance and guidance on implementing
permitting and MSW Landfill programs.

       The Agency works with tribes to ensure compliance under RCRA on Indian lands. Regional RCRA
tribal teams are partnering with the Indian Health Service (IHS) and the Bureau of Indian Affairs (BIA) to
address open dump issues on tribal lands. In states where partnership with these Federal agencies have not
been well established, Regional offices establish interagency workgroups. Workgroup representatives from
other Federal agencies will coordinate tasks based on the field of expertise within each agency which will
allow for efficient completion of the open dump initiative without overlapping efforts.

       Research

       Multimedia,  multipathway, multi-chemical, and other multi-receptor model development for the
HWIR continues to  be  a highly  effective interagency team effort between EPA and the Department of
Defense (DOD) and  the Nuclear Regulatory Commission (NRC). An example of this collaboration is the
joint effort to support the 3MRA methodology. The Agency also does work in support of HWIR with the
Department of Energy (DOE).
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      To develop waste classification criteria based on protecting human health and the environment, the
EPA supported the modification of software developed by DOE's Pacific Northwest National Labor    /
(PNNL) to create a comprehensive environmental exposure and risk analysis software system. The PNNL
modified its Framework for Risk Analysis in Multimedia Environmental System (FRAMES), under the
direction of EPA, to produce the FRAMES-HWIR Technology software system. EPA is also coordinating
some of its hazardous waste combustion and non-combustion treatment research with DOE.

      Other outside elements of cooperation are taking place with respect to waste management issues.
Within EPA, the Office of Reinvention has worked extensively with bioreactor technology through the XL
Program, in cooperation with States and private industry. The Interstate Technical Regulatory Cooperation
(ITRC)  has also proved a good forum for coordinating Federal and State activities, and for defining
continuing research needs.

Statutory Authorities

•     Solid Waste Disposal Act as amended by the Hazardous and Solid Waste Amendments of 1984.

•     Title III (Emergency Planning and Community Right-to-Know Act) of CERCLA, as amended by
      Superfund Amendments and Reauthorization Act (SARA) of 1986

»     Clean Air Act Section 112

•     Waste Isolation Pilot Plant Land Withdrawal Act of 1992, P.L. 102-579

•     Nuclear Waste Policy Act of 1982, P.L. 97-425

•     Energy Policy Act of 1992, P.L.  102-486

*     Atomic Energy Act of 1954, as amended, 42 U.S.C. 2011 et seq. (1970), and Reorganization Plan
      #3 of 1970

•     Uranium Mill Tailings Radiation Land Withdrawal Act of 1978

•     Public Health Service Act, as amended, 42 U.S.C. 201 et seq.

•     Chemical Safety Information, Site Security and Fuels Regulatory Release Act, 1999.

•     Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended, 42 U.S.C. 5121 et
      seq.

•     Executive Order 12241 of September 1980, National Contingency Plan, 3 CFR, 1980

•     Executive  Order  12656   of November  1988,  Assignment   of  Emergency Preparedness
      Responsibilities, 3 CFR, 1988

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Oil Pollution Act (OPA), 33 U.S.C. 2701 et seq..




Clean Water Act (CWA), Section 311.




Safe Drinking Water Act, 42 U.S,C. 300F et seq. (1974)




Clean Air Act Section 112




Research




Solid Waste Disposal Act (SWDA)




Resource Conservation and Recovery Act (RCRA)




Hazardous and Solid Waste Amendments (HSWA)




The Clean Air Act Amendments (CAA)
                                   V-85

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Goal 6: Global and Cross-Border

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Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 6: Reduction of Global and Cross-Border Environmental Risks	 VI-1
        Reduce Transboundary Threats to Human and Ecosystem Health in North America	  VT-9
        Reduce Greenhouse Gas Emissions	•.	VT-24
        Reduce Stratospheric Ozone Depletion	 VI-54
        Protect Public Health and Ecosystems from PBTs and other Toxics	,	Vl-63
        Increase Domestic and International Use of Cleaner and More Cost-Effective Technologies	VI-74

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                              Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                Reduction of Global and Cross-Border Environmental Risks
Strategic Goal:  The United States will lead other nations in successful, multilateral efforts to
reduce significant risks to human health and ecosystems from climate change, stratospheric ozone
depletion, and other hazards of international concern.
                                     Resource Summary
                                     (Dollars in thousands)
                                           FY1999
                                           Enacted
             FY2000
             Actual
            FY 2001
            Enacted
           FY 2002
           Request
Goal 06 Reduction of Global and Cross-
        border Environmental Risks

Obj. 01 Reduce Transboundary Threats to
        Human and Ecosystem Health in
        North America.

Obj. 02 Reduce Greenhouse Gas Emissions.

Obj. 03 Reduce Stratospheric Ozone
        Depletion.

Obj. 04 Protect Public Health and Ecosystems
        from PBTs and other Toxics.

Obj. 05 Increase Domestic and International
        Use of Cleaner and More Cost-
        Effective Technologies.

                Total Workyears
$228,591.8     $231,049.2    $284,410.8     $282,698.9
 $71,336.8
$72,420,1
$96,077.3  .    $95,677.8
$127,285.5     $124,382.3    $155,286.2     $153,828.0

 $17,002.9      $17,581.1     $17,249.9      $17,115.3
  $3,596.6
 $4,856.5
 $4,636.1
$4,809.7
  $9,370.0      $11,809,2     $11,161.3      $11,268.1
     526.9
    526.9
    521.0
  506.6
*Epr proper comparison with the FY 2002 request, the historic data has been converted to be consistent with the new 2000 Strategic Plan structure. Goal.and Objective resources
for FY 1999, FY 2000, and FY 2001 may therefore differ from the resources reported in the FY 2001 Annual Plan and Budget and the FY 2000 Annual Report.
Background and Context

       Many serious environmental risks transcend political boundaries. Consequently, protecting
human health and the environment in the United States requires coordination and cooperation at a
multinational level. Ecosystems such as the Great Lakes are essential to the health and welfare of
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U.S. citizens, are shared by neighboring countries, and can only be preserved through joint action.
Other environmental risks - related to climate change, arctic environments, and biodiversity - are
global in scope, and affect the health and welfare of United States citizens  both directly and
indirectly. These and other threats, unbound by national borders, need to be addressed on an
international scale.

      International environmental management programs provide important political and economic
benefits.  A significant portion of EPA's  international  work fulfills  legally-binding treaties,
conventions and other international statutory mandates.  Sharing regulatory  and technological
expertise helps the United States, other industrialized nations, and newly democratic and developing
nations  achieve development consistent with the goals of protecting human health and  the
environment. As newly democratic and developing nations progress economically, their use of
sound environmental practices will prevent the need for costly cleanup and restoration in the future.
In addition, the development of effective environmental management  and regulatory regimes
throughout the  world helps ensure that U.S. companies are not competitively disadvantaged by
developing nations who otherwise may opt for rapid, inexpensive economic growth at the expense
of the environment.
Means and Strategy

       To reduce environmental and human health risks along the U.S./Mexico Border and the Great
Lakes, EPA employs both voluntary  and regulatory measures. Efforts in the U.S./Mexico Border
Area utilize 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.
In the Great Lakes Basin, our strategy targets multi-media problems through monitoring and/or
modeling efforts such as the  Great Waters  atmospheric deposition program, the Integrated
Atmospheric Deposition Network, and the Great Lakes National Program Office's (GLNPO) open
water monitoring. Through these means, federal,  state, Tribal, and provincial environmental
Organizations are targeting their Great Lakes efforts and utilizing all available authorities in order
to achieve restoration of these areas.

       To prevent degradation of the marine environment, the Agency, in conjunction with the
Department of State, the National Oceanic and Atmospheric Administratoin (NOAA), and other
Federal agencies, is focusing on the negotiation and implementation of legally-binding multilateral
agreements. These agreements are designed to address sources of marine pollution that impact the
United States.

       EPA will meet its 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


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efficient equipment and practices.  These voluntary programs remove barriers in the marketplace,
resulting in faster deployment of energy  efficient technology into the residential, commercial,
transportation, and industrial sectors of the economy. For example, the Partnership for a New
Generation of Vehicles (PNGV) joins EPA and four other Federal agencies with Ford, General
Motors and DaimlerChrysler to develop a new generation of safe, attractive and affordable vehicles
with ultra-low emissions and high fuel efficiency.

       EPA is also working with key developing countries, economies-in-transition, and regional
groups to reduce greenhouse gas emissions through programs that focus on information and
outreach, financing, energy efficiency, air quality, and technology transfer.

       In order to restore and protect the earth's stratospheric ozone layer, EPA will  work on both
domestic and international fronts to limit the production and use of ozone-depleting substances and
to develop safe  alternative compounds.  EPA will also provide  education about the risk of
environmental and health consequences of overexposure to ultra violet (UV) radiation.

       To address the risks associated with persistent and bioaccumulative substances and other
toxics, the Agency employs two fundamental approaches. The first approach seeks to minimize the
harmful impacts of toxic substances known to  circulate in the environment over long distances
through the negotiation and implementation of specific treaties. The second approach focuses on
the cooperative efforts of the Organization for Economic Cooperation and Development (OECD)
and  other international organizations working  to develop harmonized methods for testing and
assessing the toxicity of chemicals, and  for measuring the effects of chemicals to humans and the
environment.

       In addition to the specific strategies noted above, the Agency employs a variety of means to
achieve the environmental objectives outlined hi this goal. These include:

•      Implementing formal bilateral and multilateral environmental agreements with key countries,
       executing environmental components of key foreign policy initiatives, and, in partnership
       with the Department of State, engaging in regional and global negotiations aimed at reducing
       risks via formal and informal agreements.

•      Cooperating with other countries to ensure that domestic and international environmental
       laws, policies, and priorities are recognized and implemented.

•      Cooperating with other Federal  agencies,  states, business, and environmental groups  to
       promote the flow of environmentally sustainable technologies and services worldwide,

       Research

       EPA is working to  assess the vulnerability of human health and ecosystems to various
environmental stressors (e.g., climate change, land-use change, UV radiation) at the regional scale,
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and to assess adaptation strategies. The knowledge gained from these assessments (e.g., the impacts
climate change could have on the spread of vector-home and water-borne disease, as well as air and
water quality), will allow policy makers to find the most appropriate, science-based solutions to
reduce risks to human health and ecosystems posed by climate change.
Strategic Objectives and FY 2002 Annual Performance Goals

Objective 01: Reduce Transboundary Threats to Human and Ecosystem Health in North
America

•      Great Lakes ecosystem components will improve, including progress on fish contaminants,
       beach toxics, air toxics, and trophic status.

•      Increase the number of residents in the Mexico border area who are protected from health
       risks, beach pollution and damaged ecosystems from  nonexistent and failing water and
       wastewater treatment infrastructure by providing improved water and wastewater service.

Objective 02:  Reduce Greenhouse Gas Emissions

       Greenhouse gas emissions will be reduced from projected levels by approximately 73
       MMTCE per year through EPA partnerships with businesses, schools, state and  local
       governments, and other organizations thereby offsetting growth in greenhouse gas emissions
       above 1990 level by about 20%.

•      Reduce energy consumption from projected levels by more than 85 billion kilowatt hours,
       contributing to over $10 billion in energy savings to consumers and businesses.

•      Demonstrate technology for an 85 MPG rnid-size family sedan that has low emissions and
       is safe, practical, and affordable.

*      Assist 10 to  12 developing  countries and countries with economies in transition in
       developing strategies and actions for reducing emissions of greenhouse gases and enhancing
       carbon sequestration.

•      Provide  analysis,  assessment, and reporting support  to Administration officials, the
       Intergovernmental Panel on Climate Change,  and the Framework Convention on Climate
       Change.

•      In close cooperation with USDA, identify and assess opportunities to sequester carbon in
       agricultural soils, forests, other vegetation and commercial products, with collateral benefits
       for productivity and the environment, with carbon removal potential of up to 25 MMTCE
       by 2010.
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Objective 03: Reduce Stratospheric Ozone Depletion

•     Provide assistance to at least 75 developing countries to facilitate emissions reductions and
      toward achieving the requirements of the Montreal Protocol.

•     Restrict domestic consumption of class II HCFCs below 15,240 ODP-weighted metric tonnes
      (OOP MTs) and restrict domestic exempted production and import of newly produced class
      I CFCs and halons below 60,000 ODP MTs.

•     Increase the number of children participating in the Sun Wise School Program by 25%, and
      reduce the rate of sunburns among participants by 5%.

Objective 04: Conduct Research to Protect Public Health and Ecosystems from PBTs and
other Toxics

Objective 05: Increase Domestic and International Use of Cleaner and More Cost-Effective
Technologies

•     Enhance environmental management and institutional capabilities in priority countries.
Highlights

       EPA's continued leadership is necessary to build international cooperation and technical
capacity essential in preventing harm to the global environment and ecosystems we share with other
nations.  In FY  2002, EPA will use a  variety of approaches to prevent harm to the global
environment and ecosystems.

       The Agency will  host  representatives of foreign  governments, industry, and Non-
governmental Organizations (NGOs) at the Agency's Headquarters, Regions, and labs. The Agency
will also disseminate thousands of technical publications and CD-ROMs to developing countries and
provide access to additional information through  technical  training courses, the Office  of
International Activities web site, the Spanish Language Resources site, and other services.

       EPA will work directly with other countries and through multilateral organizations to share
innovative practices for environmental management and to disseminate environmental information.
These programs build the capacity of developing countries to improve quality of life for their
citizens, while also providing reciprocal  benefits to U.S. citizens.  These benefits include: the
introduction of new techniques for managing urban environments, reduced environmental damage
to the global commons, reduced costs and effort through data sharing, an increased demand for U.S.
environmental technologies and services, and the implementation of more transparent enforcement
and permitting regimes.
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       To reduce environmental and human health risks along the U.S./Mexico Border, EPA will
continue its work with the border states and Mexico to target the quality of air, drinking water and
wastewater treatment and hazardous waste management and disposal. Nine working groups will
address key issues while working closely with state and local agencies on both sides of the border.
EPA will also continue to support the financing and construction of water, wastewater treatment and
solid waste facilities.

       EPA, through the Great Lakes National Program  Office (GLNPO),  will coordinate
implementation of the ecosystem approach in the Great Lakes by its Federal, state, Tribal and local
partners, folly implementing a "community-based" approach.  GLNPO and its partners will act
consistently with goals of the Great Lakes Strategy and the Agency's Strategic Plan. EPA, states and
local communities will strategically target reductions of critical pollutants through Remedial Action
Plans for Areas of Concern and through Lakewide Management Plans for Lakes Ontario, Michigan,
Superior, and Erie.

       Recognizing that no  single country can resolve the problem of global climate change, EPA
will help facilitate the international cooperation necessary to achieve the stabilization of greenhouse
gas concentrations. The 1992 Framework Convention on Climate Change (FCCC) set the objective
of stabilizing greenhouse gas concentrations at a level that would prevent dangerous anthropogenic
interference with the climate system.  On the domestic side, EPA will encourage voluntary
partnerships, provide technical assistance and promote state and local  efforts to achieve future
greenhouse gas emission reductions.

       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 (ODSs) and hydrofiourocarbons.

       Reduced risks from toxics, especially persistent organic pollutants (POPs) and selected
metals that circulate in the environment at global and regional scales, will be achieved by working
with other countries - within the frameworks established by international instruments - to control
the production or phase-out from the use of  targeted chemicals. EPA is also working to reach
agreement on import and export requirements  applicable to certain chemicals, an expansion of
pollutant release and transfer registers and the harmonization of chemical testing, assessment and
labeling procedures. The goal of international harmonization of test guidelines  is to reduce the
burden on chemical companies of repeated testing in satisfying the regulatory  requirements of
different jurisdictions both within the United States and internationally. Harmonization also expands
the universe of toxic chemicals for which needed testing information is available, and fosters
efficiency in international information exchange and mutual international acceptance of chemical
test data.  EPA will continue to cooperate closely with other Federal  agencies and with  other
industrialized nations within the program framework of the Organization for Economic Cooperation
and Development (OECD) in harmonizing testing guidelines.
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       The U.S. is working with other OECD member countries to implement the International
Screening Information Data Set (SIDS) program, a voluntary international cooperative testing
program begun in 1990. The program focuses on developing base-level test information (including
data on basic chemistry, environmental  fate, environmental effects and  health effects) for
international high production volume chemicals.  SIDS data will be used to screen chemicals and
to set priorities for further testing and/or assessment. The Agency will review testing needs for 95
SIDS chemicals in FY 2002.

       The United States expects to sign in 2001 the legally-binding Stockholm Convention on
persistent organic pollutants (POPs), substances such as DDT, PCBs and dioxins. These substances
travel great distances in the environment and thus threaten humans and the ecosystem in the U.S.,
even though we have long worked domestically to reduce releases into the  environment.  This
convention will require ratifying countries to reduce and/or eliminate their production, use and/or
release of specified POPs. To ensure that developing countries comply with obligations under this
convention, the U.S. is working with the Global Environment Facility (a joint funding program run
by the World Bank, the United Nations Environment Program, and the United Nations Development
Program) to carry out capacity building programs in developing countries.

       Research

       EPA will assess the possible effects of global change, such as changes in climate and climate
variability, changes in land use, and changes in UV radiation on air quality, water quality, ecosystem
health, and human health. EPA will also examine possible adaptation strategies that could enable
communities to take advantage of opportunities and reduce the potential risks associated with global
change. The outcome of these assessments will help inform decision-making regarding strategies
to address these possible changes.
External Factors

       EPA's work under Goal 6 requires the cooperation of numerous governments and agencies
around the world as well as non-governmental organizations and private sector parties. Accordingly,
the level of success and the speed at which our objectives are achieved is highly influenced by
external factors and events.

       While many factors outside of EPA or U.S. control determine a nation's willingness to
participate  in international  environmental  protection efforts  (e.g., economic  or political
considerations within the country), EPA's international policy and technical exchange programs can
play an important role  in convincing  particular nations  of both the need and feasibility of
participating. Other factors affecting EPA's programs under Goal 6 include continued Congressional
and public support; cooperation with other Federal agencies, such as the State Department and the
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U.S. Agency for International Development; and collaboration with state and local groups, business
and industry groups, and environmental organizations.

       Reduction of air, water, wastewater and solid waste problems along the U.S. border with
Mexico will require continued commitment by national, regional and local environmental officials
in that country.

       Progress on Great Lakes goals and measures is dependent on actions of others, both within
and outside of the Great Lakes. Key Great Lakes partners, including Canada, State regulatory
agencies, the Corps of Engineers, the Fish and  Wildlife Service (USFWS), and the Natural
Resources Conservation Service (NRCS) must act together to continue environmental progress.

       The U.S, Global Change Research Program (USGCRP) was established in 1990 by the U.S.
Global Change Research Act,  The 1990 Act mandates  that the USGCRP  conduct periodic
assessments of the consequences of global change for the U.S.  EPA is one often member agencies
of the USGCRP. The EPA program relies on partnerships with academic institutions to fulfill its
obligations to the USGCRP National Assessment effort.

       EPA's efforts to reduce global and regional threats to oceans and the atmosphere require the
active cooperation of other countries. Health and environmental benefits resulting from the multi-
billion dollar investment by U.S. companies to reduce emissions of stratospheric ozone depleting
compounds could be completely undone by unabated emissions of these chemicals in other countries.
Fortunately, the Montreal Protocol on Substances that Deplete the Ozone Layer has secured the
participation of most countries, including major producers and consumers of these chemicals.
Recovery  of the stratospheric ozone layer is contingent  upon international  adherence to the
commitments made under the Montreal Protocol. UV risk-reduction efforts are impacted by the rate
of recovery of the ozone layer and socio-behavioral norms and attitudes regarding sun protection.

       The success of international agreements on toxic substances is contingent on the developed
world providing adequate levels of funding and timely technical assistance to developing countries,
especially key source countries. Such funding and technical assistance is necessary in order for these
countries  to  develop  the necessary skill levels and infrastructure for implementing  these
environmental agreements. The ultimate success of these international efforts is contingent on not
only the provision of policy and technical leadership by EPA and other Federal government entities,
but also the ability to lead through the provision and leveraging of financial and technical assistance.
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                           Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

               Reduction of Global and Cross-border Environmental Risks


Objective #1:  Reduce Transboundary Threats to Human and Ecosystem Health in North America

       By 2005, reduce transboundary threats to human health and shared ecosystems in North
America, including marine and Arctic environments, consistent with our bilateral and multilateral
treaty obligations in these areas, as well as our trust responsibility to tribes.
                                 Resource Summary
                                 (Dollars in thousands)
FY 1999 FY 2000
Enacted Actual
Reduce Transboundary Threats to Human
and Ecosystem Health in North America
Environmental Program & Management
State and Tribal Assistance Grants
Total Workyears
$71,336.8
$21,336.8
$50,000.0
85,9
$72,420.1
$20,810.3
$51,609.8
79.7
FY 2001
Enacted
$96,077.3
$21,242.3
$74,835.0
83.2
FY2002
Request
$95,677.8
$20,842.8
$74,835.0
83.4
Key Programs
(Dollars in thousands)

Great Lakes National Program Office
Water Infrastructure:Mexico Border
U.S. - Mexico Border
Partnership with Industrial and Other Countries
Regional and Global Environmental Policy
FY 1999
Enacted
$14,783.8
$50,000.0
$4,929.4
$784.0
$0.0
FY2000
Enacted
$15,077.6
$50,000.0
$4,142.3
$646.9
$0.0
FY2001
Enacted
$15,207.5
$74,835.0
$4,213.7
$0.0
$860.6
FY2002
Request
$14,962.4
$74,835.0
$4,236.5
$0.0
$826.6
 Development
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                                           FY1999      FY2000     FY2001     FY2002
                                           Enacted      Enacted     Enacted     Request
Administrative Services                              $31.6      $148.9       $60.1        $61.1

Regional Management                               $0.0      $174.7      $196.2       $228.4


FY 2002 Request

       EPA's activities under this objective address transboundary environmental threats along the
U.S. border areas, in shared North American ecosystems, as well as in the Great Lakes.  Activities
focus on  the U.S.-Mexico Border, the U.S.-Canada Border, the Great Lakes Program, and marine
and Arctic environments.

U.S.-Mexico Border

       Along the 2,000 mile U.S.-Mexico border, communities live side-by-side, sharing the
benefits of rapid economic growth and a commitment to addressing environmental problems. The
effects of urban and industrial growth have contributed to the historic problems of inadequate
environmental infrastructure.  Based on the results of the Biennial Progress Report and public
comments, EPA will focus limited resources in areas which can most directly lead to improvements
in public  health and environmental conditions in this area. The program focuses on 1) reducing the
effects of the environment on human health, 2) improving air quality, 3) funding wastewater and
drinking  water infrastructure investments in under-served communities, 4) managing chemical
accidents, 5) supporting pollution prevention programs that will, over the long term, reduce the
adverse health and environmental effects of pollutants, 6) reducing and effectively  managing
hazardous and solid wastes, 7) strengthening binational cooperation between institutions responsible
for enforcing their respective country's environmental laws, and 8) strengthening coordination on
pesticide activities linking the work on regulatory harmonization with field implementation projects
to protect field workers and assure safe food supplies.

       EPA's programs will enhance efforts to monitor air quality and establish programs to reduce
air pollution. The completion of joint chemical accident contingency plans in border sister cities will
further reduce the risk to human health and ecosystems due to chemical spills.  Working with the
Government of Mexico, EPA will implement a system to track the movement of hazardous wastes
providing a tool for the enforcement  of waste disposal regulations  and decreasing the risk of
exposure due to noncompliance.

       A significant number of residents along the U.S.-Mexico  border area are without basic
services such as potable water and wastewater treatment and the problem has become progressively
worse in the last few decades. In May 2000, EPA estimated water and waste water infrastructure
needs along the U.S.-Mexico border at $4.5 billion.  For 2002, the Agency has established a goal

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that cumulatively 790,000 people in the border area will be protected from health risks because of
the construction of adequate water and wastewater sanitation systems. EPA will work closely with
the BECC and the NADBank, which manages the Border Environmental Infrastructure Fund (BEIF),
to support the financing and construction of water and wastewater treatment.  Within this objective,
the Agency is requesting $74,835,000 to support these efforts, largely through the BEIF.

       The Agency will cooperate  with its'Mexican counterpart agencies to implement  the
provisions of the LaPaz Agreement and the Border XXI Framework Document which provide a
long-term strategy to improve public health and the environment and protect essential natural
resources in the border. Nine binational working groups will address key issues, working closely
with state and local agencies on both sides of the border.

       Communities along the 2,000 mile U.S.-Mexico border are experiencing rapid economicand
population growth, as well as environmental problems, much of it driven by increased trade between
the countries. There are more than 11 million border residents, a population that has doubled in the
last 15  years,  and is  expected  to double again in the next 20 years.   Among the negative
consequences of this growth are inadequate environmental infrastructure, increased water scarcity,
serious gastrointestinal and respiratory illness, and hazardous and non-hazardous waste disposal
problems. Cooperative programs with Mexico to address these problems are carried out under the
1983 La Paz Agreement, in which regional, media, and functional workgroups implement an array
of activities with states, municipalities, and other organizations.

       EPA will focus FY 2002 resources in areas which can most directly lead to improvements
in public health and environmental conditions in the area. The program is expected to focus on (1)
reducing the effects of the environment problems on human health, (2) improving air quality, (3)
funding wastewater and drinking water infrastructure investments in undeserved communities, (4)
designing location-specific plans for chemical incidents.

       To respond to serious health threats due to environmental infrastructure deficits, EPA will
work with two key  partners, the Border Environment Cooperation Commission and the North
American Development Bank to  address financial needs along the border that are estimated at $2
billion.

Great Lakes

       The Great Lakes National Program Office (GLNPO) will coordinate implementation of the
ecosystem approach in the Great Lakes by its Federal, state, tribal, and local partners, implementing
a "community-based" approach.   GLNPO and its partners will act consistently with goals  of the
Great Lakes Strategy and the Agency's Strategic Plan.

       EPA will assess and report on the state of key Great Lakes ecosystem components, make
status and trend information available to Great Lakes environmental managers, and coordinate
measurement of a limited number of environmental indicators applicable to  the entire Great Lakes

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Basin. The Research Vessel (R/V) Lake Guardian (open lake monitoring), the R/V Mudpuppy
(nearshore sediments monitoring), and the joint GLNPO/Canadian integrated atmospheric deposition
network (including air monitoring stations on each Great Lake) will be central to summarizing the
ecological State of the Lakes. EPA's Great Lakes program will describe trends in: concentrations
of toxics in Great Lakes top predator fish; beach closings; concentrations of toxic chemicals in the
air, trophic  status and phosphorus, and contaminated sediment remediation.  Information will be
provided to state and Federal environmental managers to drive decision-making. The environmental
condition of the Great Lakes will be described in a way that can be easily understood.

       GLNPO will adjust implementation of its monitoring program for a subset of indicators
consistent with GPRA and the biennial State of the Lakes Ecosystem Conference (SOLEC). SOLEC
brings together representatives of the public and private sectors to facilitate decision-making based
upon sound environmental information. GLNPO will report model predictions for a few key Lake
Michigan toxic  reduction  scenarios from the multi-media initiative for the first-ever intensive
monitoring of Lake Michigan air, water, sediments, and biota (the Lake Michigan Mass Balance
Study, or "LMMB"), supporting the Great Waters provision of the Clean Air Act and section 118 of
the Clean Water Act.  This will enable the Agency and its partners to determine how to further
reduce Great Lakes pollutants in the most cost effective way and will provide trend and baseline data
to support and target remedial efforts and measure environmental progress under Remedial Action
Plans and Lakewide Management Plans. EPA will also expand continue access to LMMB and other
Great Lakes environmental information via the Internet.

       EPA will work with Environment Canada and lead domestic partners in implementing the
Great Lakes  Binational Toxics  Strategy,  signed  in 1997.   The Strategy, a groundbreaking
international toxics reduction effort, targets a common set of persistent, toxic substances for
reduction and virtual elimination from the Great Lakes. It focuses on pollution prevention efforts,
using voluntary  and regulatory tools to achieve reductions, and contains reduction challenges for a
targeted set of substances, e.g., mercury, PCBs, dioxins/furans, and certain canceled pesticides.
Actions and activities are outlined in the Strategy which states, industry, tribes, non-government
organizations and other stakeholders may undertake to achieve these reductions.  Through grants to
stakeholders (such as the Great Lakes States, tribes, and environmental groups for mercury or PCBs
reduction projects, for example)  and  other reduction actions, EPA will help achieve reduction
targets, consistent with the FY2000 identification of options for each of the 12 Binational Toxics
Strategy substances.  Implementation of the Strategy outside of the  Great Lakes Basin will be
augmented through   cross-Agency  support  and  activities  relating to  EPA's  Persistent
Bioaccumulative Toxics (PBT) Initiative. Toxics highlighted in the strategy were chosen as the
initial set of toxics targeted under the PBT Initiative,

       EPA, with its partners, will continue to address the contaminated sediments polluting the
harbors of  the  31 U.S. and/or binational Areas of Concern (AOCs)  in the Great Lakes.  Using
expertise from  the congressionally mandated Assessment  and Remediation of Contaminated
Sediments program, GLNPO uses its R/V Mudpuppy and other resources to visit sites and assess
sediments, returning as needed for finer scale assessment and remedial design. If a community then
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chooses to remediate the sediments, GLNPO can conduct a sediment site cleanup demonstration.
In 2002, GLNPO will assist communities with assessments and remedial design at sites in 4 AOCs,
one of which has not previously received this assistance. A total of 75,000 cubic yards of Great
Lakes contaminated sediments is expected to  be  remediated in actions involving a number of
stakeholders and participants.

       The Agency will support the efforts of states, tribes, and local communities to protect and
restore important habitats identified in the Great Lakes  biodiversity report of  The  Nature
Conservancy (TNC) and SOLEC habitat papers. The program emphasizes  habitats important for
biodiversity and ecological integrity (such as those necessary for endangered and threatened species).
Additional proj ects for ecological enhancement will be started in nearshore waters, coastal wetlands,
river corridors, and terrestrial lands.  The projects  will implement measures to protect ecological
communities and biodiversity or take steps to restore ecological functions and processes. Pilots will
be underway for the development of indicators for scientifically-sound assessments of the ecological
integrity of coastal wetlands.

       EPA is working with states and local groups from the Areas of Concern to expedite de-listing
of those Areas of Concern. EPA, Regions, states,  and local communities will strategically target
reductions of critical pollutants and restoration of impaired beneficial uses through Remedial Action
Plans for Areas of Concern and through Lakewide Management Plans for Lakes Ontario, Michigan,
Superior, and Erie,  The Agency will continue to meet specific requirements for reporting to
Congress and the International Joint Commission regarding progress under the Great Lakes Water
Quality Agreement.

Marine and Arctic Environments

       In 2002, EPA will undertake efforts to  prevent significant degradation of the marine and
Arctic environments. Our 2002 performance goals target incremental steps necessary to achieve our
longer-term objectives of preventing  further degradation of the marine environment of the Wider
Caribbean, Arctic Ocean, and  the marine environment generally where our negotiating efforts
through the International Maritime Organization are aimed at mitigating marine pollution at a global
scale. Our regional and global efforts are specifically designed to enhance the effectiveness of
existing domestic environmental controls and reduce pollution of U.S. waters resulting from
international shipping and other transboundary  vectors.

       The focus of the program is the protection of those natural resources in the marine and polar
environments that are important to the United States and other countries as well as the public health
of Arctic Rim populations.  More specifically, the programs will prevent or reduce environmental
damages associated with tributlytin, vessel discharges, and ocean  dumping. Specific projects aimed
at protection of the Arctic Ecosystem are focused  on  preventing and reducing environmental
contamination from spent nuclear fuel, PCBs, and dioxins hi NW Russia.
                                         VI-13

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       The Russia PCB project, will assist the Russian Federation in phasing out its manufacture
and use of PCBs, to reduce the release of PCBs and their subsequent transport to the Arctic, and to
encourage the Russian Federation to begin using PCB substitutes.  The project is a multilateral
cooperative pilot and is currently being conducted hi conjunction with all the Arctic Rim countries
under the auspices of the Arctic Council. In May 1999, agreements were signed with the Russian
Federation to begin the multilateral cooperative pilot project, with the completion of a Russian
Federation PCB inventory planned for May 2000.  Based on the results of the inventory, Russian
facilities that impact the Arctic will be prioritized for conversion or retrofitted for the manufacture
or use of PCB substitutes. In 2001, the Arctic Council instituted a corresponding multilateral project
to address dioxins and furans impacting the Arctic environment.

       In addition, ongoing efforts to address land-based sources of marine pollution in the Wider
Caribbean should result in improvements in regional water quality and marine habitats that include
economic benefits to significant commercial interests in the Region. Finally,  our involvement in
multilateral negotiations is critical to maintain needed flexibility in domestic rule making and other
environmental policy mechanisms.
FY 2002 Change from FY 2001 Enacted

EPM.
       (-$303,900)  This reduction redirects resources to higher priorities programs to fund
       increases in workforce costs.

       (-$129,100.00, -.5 FTE) Contract and grant resources for the Mexico Border program were
       reduced. There was a corresponding reduction to several Mexico Border programs and
       activities that address the issues of air quality, safe drinking water, and pollution prevention
       on both sides of the border.
Annual Performance Goals and Performance Measures

U.S. - Mexico Border Water/Wastwater Infrastructur

In 2002    Increase the number of residents in the Mexico border area who are protected from health
          risks, beach pollution and damaged ecosystems from nonexistent and failing water and
          wastewater treatment infrastructure by providing improved water and wastewater service.

In 2001    Increase the number of residents in the Mexico border area who are protected from health
          risks, beach pollution and damaged ecosystems from nonexistent and foiling water and
          wastewater treatment infrastructure by providing improved water and wastewater service.
                                          VI-14

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In 2000     10 Additional water/wastewater projects (cumulative total of 36) along the Mexican border
            have been certified for design-construction.

In 1999     9 additional water/wastewater projects along the U.S.-Mexico Border have been certified for
            design-construction.
Performance Measures:
Number of additional people in Mexico
border area protected from health risks,
because of adequate water & wastewater
sanitation systems funded through Border
Environmental Infrastructure Fund.

Projects certified for design-construction
along the Mexican Border
                                           FY 1999
                                           Actuals
                                           FY 2000
                                           Actuals
FY2001
Estimate
FY2002
Request
                                                                   600,000     790,000
                                                       10
                                                                               People


                                                                               Projects
Baseline:    There are approximately 11 million residents in the border area.

Great Lakes: Binational Toxics Strategy

In 2002     Reduce Great Lakes toxic pollutants.

            Reduce Great Lakes toxic pollutants.
In 2001

In 2000
In 1999
In 1999
Five assessments and characterizations (1 new and 4 follow-up) were conducted in Great
Lakes Areas of Concerns. Cataloged and publicized 8 actions toward reduction challenges
under the BNS. Implemented 4 Great Lakes projects of Level I substances in support of
toxics reductions.

Seven assessments and characterizations (2 new and 5 follow-up) were conducted in Great
Lakes Areas of Concern. Two of the five sediment cleanup demonstrations started in 1996
have been completed.

Cataloged and publicized 3 actions toward reduction challenges under the BNS. Initiated 12
Great Lakes Projects in support of toxics reduction.
Performance Measures:
Level I substances for which 1-2 toxic
reduction activities are being implemented.

New assessments and characterizations to
support State/community clean-up of
contaminated sediments at Great Lakes AOCs.

Follow-up assessments and characterizations to
support State/community clean-up of
contaminated sediments at Great Lakes AOCs.
                                           FY 1999
                                           Actuals
                                            FY 2000
                                            Actuals
FY2001
Estimate
FY2002
Request
                                                                                           Substances
                                                                                           Assessment
                                                                                           Assessments
                                                 VI-15

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Cubic yards of contaminated sediment
remediated in the Great Lakes.

Amount of high-level PCBs used in
electrical equipment nationally.

Amount of mercury deliberately used
nationally and released nationally from
sources resulting from human activity.

Amount of dioxins and furans (2,3,7,8-TCDD
toxicity equivalents) released from  sources
resulting from human activity.

Great Lakes sediment cleanup demonstrations
completed                                   2

Catalog and publicize actions (partnerships
or virtual elimination  demonstration projects)
toward reduction challenges under  BNS.        3
Great Lakes Projects initiated in support of
toxics reduction
12
Assessments and characterizations at Great
Lakes Areas of Concern                       7

Catalogued and publicized actions
(partnerships or virtual elimination
demonstration projects) initiated toward
reduction challenges under BNS.

Completion and documentation of BNS
analytical process for each of the Level 1
chemicals.  Process includes info, gathering,
analysis of reg. gaps, recommendations, &
options for reductions

Cumulative total (out of 5 started since 1996)
of sediment cleanup demonstrations completed.  2
50,000      75,000      Cubic yards


Reasonable  Reasonable  Progress



Reasonable  Reasonable  Progress



Reasonable  Reasonable  Progress


                        Demonstrations



                        Actions


                        Projects


                        Assessments
                                               Actions
            100
                      % Completion
                                             Cleanup demos
Baseline:    U.S. baselines for toxic pollutants are, in most cases,  based on the most recent and
            appropriate inventory as of the Great Lakes Strategy's 1997 signing. In the case of mercury,
            for example, the most recent inventory is based on estimated emissions during the early
            1990s.  In  September 1999, GLNPO quantified for the  first time annual contaminated
            sedimentremediation. GLNPO will continue to quantify contaminatedsediinentremediation
            annually.

Great Lakes: Ecosystem Assessment

In 2002     Great Lakes ecosystem components will improve, including progress on fish contaminants,
            beach toxics, air toxics, and trophic status.
                                                VI-16

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In 2001      Great Lakes ecosystem components will improve, including progress on fish contaminants,
            beach toxics, air toxics, and trophic status.

In 2000      6,000 of acres of acquatic,  wetland, riverine, and terrestrial Great Lakes habitats were
            positively impacted.

In 1999      Steps identified in ballast water management that will prevent the introduction of new
            non-indigenous species.

In 1999      Protocols developed  for  swimmability index, benthic community  health, sediment
            assessment, sediment remediation, and predator fish.

In 1999      Funded 8 projects intended to ecologically enhance terrestrial biodiversity and have
            enhanced 95,000 acres.
Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
Great Lakes Ecosystem Indicator Indices with
reports, addressing select fish contaminants,
atmospheric deposition, limnology, biology, and
sediments.

Acreage of total aquatic, wetland, riverine, and
terrestrial Great Lakes habitat positively
impacted.

Begin pilot project to implement 1 ballast water
management recommendation addressing
Great Lakes invasive species.

Concentration trends of toxics (PCBs) in
Great Lakes top predator fish.

Trend in number of monitored Great Lakes
beaches closed one or more days as a result
of pollution.

Concentration trends of toxic chemicals in the
air.

Trophic status and phosphorus concentrations
in the Great Lakes.

The dissolved oxygen depletion
trend in Lake Erie.

Develop protocols for 5 of a proposed
12 GLNPO Monitoring Indexes,
summarizing the prior year's data on select
fish contaminants, atmospheric dep.,
limnology, biology, & sediments.
            1.0
            6,000
FY2001
Estimate
FY 2002
Request
                                    Indices



                                    Acres



                                    Pilot


            Declining   Declining   Trend



            Declining   Declining   Trend


            Declining   Declining   Trend


            Improving   Improving    Concentration
                                    Limited
                                    Trend
                                                Protocols
                                                 VI-17

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Projects and acreage ecologically enhanced
in terrestrial biodiversity investment areas      8/95,000                                       Projects/Acres

Model predictions for Lake Michigan for
toxics reduction scenarios.                              5                                  Predictions

Set of quantifiable targets for ecological
enhancement in aquatic biodiversity
investment areas.                           0                                             Set

Identify steps in ballast water management
that will prevent the introduction on new
non-indigenous species.                      1                                             Set

Baseline:   Identified targets are currently based on historic trends. The trend (starting with 1972 data)
           for PCBs in Great Lakes top predator fish toxics is expected to be less than 2 parts per
           million (the FDA action level), but far above the Great Lakes Initiative target or levels at
           which fish advisories can be  removed. The trend (starting with 1992 data) for PCB
           concentrations in the air is expected to range from 50 to 250 picograrns per cubic meter. The
           trend (starting with 1983 data) for phosphorus concentrations is expected to range from 4 to
            10 parts per billion, levels established in the Great Lakes Water Quality Agreement.  The
            1970 baseline of oxygen depletion of the Lake Erie central basin is 3,8 mg/liter/month, EPA
           is working with its partners to refine targets within the next 3 years.

Managing PBT Chemicals Internationally

In 2002    Evaluate feasible alternative remedial or emissions reduction/ elimination technologies
           applicable to the Russian PCB sources identified as high priority transboundary risks to the
           Arctic, including Alaska.

Performance Measures:                      FY1999    FY2000    FY2001    FY2002
                                          Actuals     Actuals     Estimate    Request

Identification of the technologies addressing the
highest priority PCB source category for a
Phase III demonstration project in the Arctic.                                     8/30/2002   report

Baseline:   FY 2002 is the first year of formally managing PBT chemicals internationally. As soon as
           is appropriate, baseline information will be developed.
Verification and Validation of Performance Measures

Goal 6, Objective 1

Performance Measure: People in the Mexico border area protected from health risks because
of adequate  water  and  wastewater  sanitation  systems  funded  through  the Border
Environmental Infrastructure Fund.

Performance Database: No formal database


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Data Source: 1) Population figures from 1990 U.S. Census;  2) data for both U.S. and Mexican
population served by certified  water/wastewater treatment improvements from the Border
Environment Cooperation Commission (BECC); 3) data on projects funded  from  the North
American Development Bank (NADBank)

QA/QC Procedures: Headquarters is responsible for coordinating submission of and  evaluating
quarterly reports from the Regions.

Data Quality Review:  Regional representatives attend meetings of the certifying and financing
entities for border projects (BECC and NADBank) and conduct site visits of projects underway to
ensure the accuracy of information reported.

Data Limitations: None

New/Improved Data or Systems: None

Performance Measure:  Concentration trends of toxics (PCBs) in Great Lakes top predator
fish.

Performance Database:  Great Lakes National Program Office (GLNPO) base monitoring program.

Data Source: GLNPO's ongoing base monitoring program, which has included work with
cooperating organizations such as the Great Lakes States, USGS, and USFWS.

QA/QC Procedures: GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order.

Data Quality Review: GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order and is audited every 3 years in accordance with Federal policy
for Quality Management. GLNPO has implemented all recommendations from these external audits
and complies with Agency QA standards.

Data Limitations: There is greater uncertainty regarding the representativeness of data pertaining
to nearshore areas because of the greater variability of the nearshore environment. GLNPO will be
able to  quantify uncertainty for data in each reported area.
New/Improved Data or Systems: The GLENDA database is a significant new system with
enhanced capabilities. GLNPO will be loading current and prior years fish monitoring data into
GLENDA after the data undergoes a QA process and are properly formatted.

Performance Measure:  Concentration trends of toxic chemicals in the air.

Performance Database: Great Lakes National Program Office (GLNPO) integrated atmospheric
deposition network (IADN) operated jointly with Canada.

                                       VI-19

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Data Source:  GLNPO and Canada are the principal sources of that data. Data also come through
in-kind support and information sharing with other Federal agencies, with Great Lake States, and
with Canada.

QA/QC Procedures: GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order.

Data Quality Review: GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order and is audited every 3 years in accordance with Federal policy
for Quality Management. GLNPO has implemented all recommendations from these external audits
and complies with Agency QA standards.

Data Limitations: None

New/Improved Data or Systems:  The GLENDA database is a  significant new system with
enhanced capabilities.   Lake Michigan Mass Balance atmospheric data have been loaded  into
GLENDA, but IADN will be the main .repository of base program air data.

Performance Measure: Trophic status and phosphorus concentrations in the Great Lakes.
Performance Database: Great Lakes National Program Office  (GLNPO) base monitoring
program.

Data Source:  Data are part of GLNPO's ongoing base monitoring program for the open waters of
the 5 Great Lakes. GLNPO is the principal source of that data.

QA/QC Procedures: GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order.

Data Quality Review: GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order and is audited every 3 years hi accordance with Federal policy
for Quality Management. GLNPO has implemented all recommendations from these external audits
and complies with Agency QA standards.

Data Limitations: None

New/Improved Data or Systems:  The GLENDA database is a  significant new system with
enhanced capabilities. GLNPO will be loading current and prior years base monitoring program data
into GLENDA after the data undergoes a QA process and are properly formatted.
                                      VI-20

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Coordination with Other Agencies

Mexican Border

       Over the last several years, U.S. EPA has continued to work with the U.S. and Mexican
Sections of the International Boundary and Water Commission to further our efforts to improve
water and wastewater services to communities within 100 km of the U.S.- Mexico Border. Recently,
U.S. EPA has been involved in efforts to plan, design and construct more than 10 water and
wastewater facilities in the Border region.

       The Governments of Mexico and the United States agreed, in November  1993, on
arrangements to assist communities on both sides of the border in coordinating and carrying out
environmental infrastructure proj ects. The agreement between Mexico and the United States furthers
the goals of the North American Free Trade Agreement and the North American Agreement on
Environmental Cooperation.

       To this purpose, the governments established two international institutions; The Border
Environment Cooperation Commission (BECC), with headquarters in Ciudad Juarez, Chihuahua,
Mexico, assists  local  communities  and other sponsors  in  developing  and implementing
environmental infrastructure projects.  EPA has provided $30.5 million through FY 2001 to the
BECC project development fund. The BECC also certifies projects as eligible for North American
Development Bank financing.

       The North American Development Bank financing; and 2) North American Development
Bank (NADBank), with headquarters in San Antonio, Texas, is capitalized in equal shares by the
United States and Mexico.  NADBank provides new financing to supplement existing sources of
funds and  foster the expanded participation of private capital. Through FY 2001 U.S. EPA has
provided $339 million to the NADBank through the Border Environmental Infrastructure Fund,
BEIF. NADBank issues border grants for individual projects from the BEIF on the agency's behalf.

       The United. States Government has committed to funding $700 million towards the Mexico
Border project. Since fiscal year!994, $607.6 million has been appropriated, including significant
funding for projects managed by the International Boundary and Water Commission and for border
tribal infrastructure projects.

Great Lakes

       Pursuant to the mandate in Section 118 of the Clean Water Act to "coordinate action of the
Agency with the actions of other Federal agencies and State and local authorities...,"  GLNPO  is
engaged in extensive coordination efforts with State, Tribal, and other Federal agencies, as well as
with our counterparts in Canada. In  1991, EPA joined States and Federal agencies that have
stewardship responsibilities for the Lakes in developing a shared five year strategy. In addition  to
the eight Great Lakes States, partners to the plan include the Army Corps of Engineers (Corps), the
                                        VI-21

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Coast Guard, the Fish and Wildlife Service (USFWS), the U.S. Office of Geological Survey, the
National Oceanic  and Atmospheric Administration (NOAA),  and the  Natural  Resources
Conservation Service (NRCS). The strategy joins environmental protection agencies with natural
resource agencies in pursuit of common goals. These same organizations and the Great Lakes Tribes
also meet at GLNPO's annual Great Lakes Planning Meeting to  plan and prioritize near term
activities, GLNPO monitoring involves extensive coordination among these partners, both in terms
of implementing the monitoring program, and in utilizing results from the  monitoring to manage
environmental programs. GLNPO's sediments program works closely with the States and the Corps
regarding dredging issues.  Implementation of the Binational Toxics Strategy involves extensive
coordination with Great Lakes States. GLNPO works closely with states, tribes, FWS, and NRCS
in addressing habitat issues in the Great Lakes.  GLNPO also coordinates with these partners
regarding development and implementation of Lakewide Management Plans for each of the Great
Lakes and for Remedial Action Plans for the 31 U.S./binational Areas of Concern.

Marine and Arctic Environments

      EPA has a number of cooperative effort's underway addressing both radioactive and non-
radioactive contamination threats to the Arctic environment and ecosystems, including threats to
Alaska and indigenous populations of the Arctic Rim.  Three ongoing projects address concerns
regarding radioactive contamination from Northwest Russia. One, concerned  with providing
processing  capacity for low-level liquid radioactive waste in Murmansk, Russia, has involved
domestic coordination with Department of Defense, Department of State, Agency for International
Development, and international coordination and partnering with Government ofNorway (Ministry
of  Foreign  Affairs) and  the  Government  of Russia (Ministries  of  Atomic Energy and
Transportation).  Two other projects address the safe storage of spent nuclear fuel  from
decommissioned Russian nuclear submarines, OIA coordinates these projects with DOS and DOD;
and our foreign partners Norway, Finland, Sweden, the U.K. and EU Russia. Non-radioactive
contamination concerns are being'addressed through projects under the eight nation Arctic Council
(Finland, Denmark/ Greenland, Norway, Sweden, Canada, Iceland, Russia) and  the Arctic
Monitoring and Assessment Program (AMAP) under the Council.

       The major goals of the Russia PCB project are to assist the Russian Federation in phasing
out its manufacture and use of PCB s, to reduce the release of PCBs and their subsequent transport
to the Arctic, and to encourage the Russian Federation to begin using PCB substitutes. The project
is a multilateral cooperative pilot and is currently being conducted in conjunction with all the Arctic
Rim countries under the auspices of the Arctic Monitoring and Assessment Programme (AMAP) of
the Arctic Council. Other aspects of the PCB work involve coordination or cooperation with HHS
(Indian  Health Service  and Center  for Disease Control), agencies of the  State of Alaska and a
number of Alaskan native American organizations.

       EPA works with the Department of State, NOAA, Coast Guard, Navy, and other Federal
agencies in developing  the technical basis and policy decisions necessary  for negotiating global
treaties concerning marine antifouling systems and invasive species as well as a regional agreement

                                         VI-22

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for the Wider Caribbean Basin that will establish standards for domestic wastewater discharges and
other land-based sources of marine pollution. Given the geographic scope of these agreements, the
efforts involve multilateral negotiations with numerous governments.
Statutory Authorities

Clean Water Act
Clean Air Act
Toxic Substances Control Act
Resource Conservation and Recovery Act
Pollution Prevention Act
North American Free Trade Agreement

US-Canada Agreements
1997 Canada-U.S. Great Lakes Binational Toxics Strategy
1996 Habitat Agenda
1990 Great Lakes Critical Programs Act
1987 Great Lakes Water Quality Agreement
1987 Montreal Protocol on Ozone Depleting Substances
1978 Great Lakes Water Quality Agreement (GLWQA)
1909 The Boundary Waters Treaty
                                        Vl-23

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                           Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

               Reduction of Global and Cross-border Environmental Risk


Objective #2:  Reduce Greenhouse Gas Emissions

       By 2010, U.S. greenhouse gas emissions will be substantially reduced through programs and
policies that also lead to reduced costs to consumers of energy and reduced emissions leading to
cleaner air and water.  In addition, EPA will carry out assessments and analyses and promote
education to provide an understanding of the consequences of global change needed for decision
making.
                                  Resource Summary
                                  (Dollars in thousands)
                                        FY1999
                                        Enacted
            FY2000
             Actual
FY 2001
Enacted
FY2002
Request
Reduce Greenhouse Gas Emissions

    Environmental Program & Management
$127,285.5    $124,382.3    $155,286.2    $153,828.0

 $74,364.4     $80,898.6    $104,423.1    $104,935.5
    Science & Technology

       Total Workyears
 $52,921.1      $43,483.7     $50,863.1     $48,892.5

    322.1         327.3         316.4        305.4
                                     Key Programs
                                  (Dollars in thousands)

Climate Protection Program: Buildings
Climate Protection Program: Transportation
Climate Protection Program: Industry
Climate Protection Program: Carbon Removal
FY1999
Enacted
$38,800.0
$31,750.0
$22,086.1
$0.0
FY2000
Enacted
$42,640.9
$29,604.8
$21,991.7
$1,000.0
FY2001
Enacted
$52,535.0
$29,435.1
$31,929.6
$997.8
FY2002
Request
$52,730.9
$32,440.8
$27,295.2
$1,700.0
                                         VI-24

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                                            FY1999     FY2000     FY 2001     FY 2002
                                            Enacted     Enacted     Enacted     Request
Climate Protection Program: State and Local Climate     $2,500.0
Change Program

Climate Protection Program: International Capacity      $4,322.9
Building

Climate Change Research                         $ 15,970.6

Partnership with Industrial and Other Countries            $409.1

Climate Protection Program: RESEARCH             $ 10,000.0

Technical Cooperation with Industrial and                  $0.0
Developing Countries

Rent, Utilities and Security                             $0.0

Administrative Services                                $0.0
 $2,508.0
 $5,594.4
    $0.0
$2,494.5
$5,501.7
  $762.0
$2,500.0
$6,315.1
$20,592.2    $22,550.4    $21,95.1.7

  $428.2        $0,0         $0.0

    $0.0        $0.0         $0.0
 $793.5
 $4,298.7     $4,612.6     $5,023.0

 $1,905.0     $2,759.7     $2,767.7
FY 2002 Request

       EPA is meeting the United States' climate change objectives by working in partnership with
business and other sectors through programs that deliver multiple benefits - from cleaner air to lower
energy bills - while improving overall scientific understanding of climate change and its potential
consequences. In F Y 2002, EPA expects to continue expanding on the significant accomplishments
of its Climate Protection Programs. The opportunity to save on our nation's $600 billion annual
energy bill over the next decade while reducing air pollution is tremendous. The opportunity to
reduce greenhouse gas emissions is as great. We currently expect that more than half of the nation's
anthropogenic greenhouse gas emissions ten years from now to come from equipment that we
purchase between now and then.

       The core of EPA's climate change efforts are voluntary government/industry partnership
programs designed to capitalize on the opportunities consumers, businesses, and organizations have
to make sound investments in efficient equipment and practices. Thousands of equipment purchases
are made every day, and often people buy the equipment that is  the least efficient, thereby
committing themselves to higher energy bills for ten to twenty years at a time, depending upon the
life of the equipment. At the same time, people often overlook the investment opportunities that the
more efficient equipment represents, investment opportunities with the potential of more than double
the return on investment of other common options (e.g., money markets, U.S. Treasury bonds).
                                          VI-25

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       EPA manages a number of efforts such as the ENERGY STAR programs and the EPA portion
of the Partnership for a New Generation of Vehicles (PNGV) to remove barriers in the marketplace
and deploy technology faster in the residential, commercial, transportation, and industrial sectors of
the economy. EPA programs do not provide financial subsidies. Instead, they work by overcoming
widely acknowledged barriers to energy efficiency - lack of clear, reliable information on technology
opportunities; lack of awareness of energy efficient products and services; lack of financing options
to turn life cycle energy savings into initial cost savings for consumers;  and low incentives to
manufacturers for efficiency research and development (R&D).

       The Agency will also continue activities that provide co-benefits to other countries and to
the global commons. By recognizing and providing support for in-country environmental issues such
as local air quality, energy access and efficiency, cleaner production, and solid waste management
(for methane reduction), global reductions in greenhouse gas emissions are gained.

       Some of EPA's newest voluntary programs are particularly timely.  These newest partnership
programs that will promote cleaner, more  efficient energy supply through increased renewable
energy and combined heat and power (CHP) applications. These "distributed energy" technologies
continue to break the link between our nation's increased energy demand and air pollution. CHP and
renewable power also help meet the growing need for decentralized, highly reliable power as our
nation's electric grid ages. In FY2001, the Agency initiated a number of transportation initiatives
focusing  both on the industry and state and local sectors, including a program to implement
voluntary ground freight management practices and technologies that can substantially improve load
scheduling and load matching logistics, reduce truck engine idling, and improve truck fuel efficiency.

     1  Research

       EPA's Global Change research program is an assessment-oriented  program committed to
evaluating the potential consequences of global  change for human health,  ecosystems, and
socioeconomic systems in the United States.  The Global Change research program's assessment
process brings together several different groups of people with common interests and enables them
to work together to address environmental concerns. Through workshops and other formal and
informal interactions, those who may be affected by environmental change (the stakeholders), those
who can pro vide scientific information about that change (researchers and assessors) and those who
can respond to that change (resource managers and decision-makers) communicate with each other.
This interaction ensures that researchers and decision-makers understand the issues of greatest
concern to the stakeholders, and that  stakeholders understand the scientific basis for resource
planning  decisions. Through this process, assessors integrate insights from diverse research
disciplines to address real-world questions.  For example, if stakeholders express concern about an
increase in the spread of certain diseases as a result of climate change, an assessor might integrate
research on climate change, precipitation change, vegetation, rodent population, and the spread of
diseases to determine if a warmer climate may lead to a greater risk of vector-borne disease.
                                         VJ-26

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       Program Accomplishments

       EPA has had substantial success across its Climate Protection Programs (CPP) and global
change research  efforts. Through 2000, EPA's  CPPs (see Table 1) are substantially reducing
emissions of carbon dioxide and other greenhouse gases such as methane andperfluorocompounds
(PFCs). Since the mid-1990s, these programs have reduced U.S. greenhouse gas emissions by more
than 170 million metric tons carbon equivalent (MMTCE), while also saving families and businesses
an estimated $17 billion on their energy bills and  keeping roughly 400,000 tons of smog-forming
nitrogen oxide (NOJ pollution from entering the air.  In FY2001, EPA is also implementing new
partnership programs aimed at reducing energy demand in the transportation sector.

              Many of EPA's climate protection programs have locked in substantial energy and
environmental benefits over the next decade.  Since many of the investments promoted through
EPA's climate programs involve energy efficient equipment with lifetimes of decades or more, the
investments that have been spurred through 2000 will continue to deliver envkonmental  and
economic benefits through 2010 and beyond. EPA currently estimates that based on investments in
equipment already made due to EPA's programs through 2000, organizations and consumers across
the country will save more than $50 billion through 2010, and, greenhouse gas emissions will be
reduced by more than 400 MMTCE through 2010 (cumulative reductions based upon estimated 2000
achievements). These programs continue to be highly cost-effective approaches for delivering
environmental benefits across the country. For every  dollar spent by EPA on its technology
deployment programs, these programs have reduced greenhouse gas emissions by more than 1.0
metric ton of carbon equivalent (3.67 tons of CO2) and delivered more than $75 in energy bill
savings.  This is based upon a cumulative reduction since 1995,

       In addition to these benefits, the transportation research and development component of
EPA's CPPs has produced important technological advancements that will generate substantial
energy and carbon benefits  in future years, while improving America's competitiveness.

       In 2000 alone, the Climate Protection Programs:

       •      reduced greenhouse gas emissions by an estimated 57 million metric tons of carbon
              equivalent (MMTCE);
       *      reduced energy consumption by  an estimated 75 billion kilowatt hours;
       •      successfully demonstrated 72 miles per gallon (gasoline equivalent) on a mid-size
              research chassis with a state-of-the-art diesel engine and an EPA-in vented, patented,
              and developed hybrid drivetrain; and
       •      worked with 12 strategically selected countries in Asia, Africa, Latin America, and
              Eastern Europe to  develop capacity to analyze the benefits of and/or implement
              sustainable,  market-based activities/programs designed to reduce  greenhouse gas
              emissions in a cost-effective manner.
                                         VI-27

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      These are the four primary GPRA performance goals for EPA's CPPs. EPA's programs are
on track to meet each of these goals for 2000. There are also performance measures for key subparts
of EPA's CPPs. Table 2 shows that EPA will meet or exceed many of these performance measures.
These performance measures are not met in two areas, transportation and industrial CO2 programs.
Both of these programs have undergone program restructuring and are expected to reduce greater
greenhouse gas emissions in 2002 and beyond.
                                       VI-28

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                    Table 1:  EPA's Climate Protection Programs
Sector
Program
Activity/Initiative
Buildings
Industry
Transportation
ENERGYSTAR
Carbon Reduction
Programs (CO2)
Methane Programs (CH4)
Programs to Reduce High
Global Warming Potential
Gases (HFCs, PFCs, SF6)
Transportation Efficiency
Programs
Partnership for a New
Generation of Vehicle
(PNGV)
21" Century Truck
Buildings
Labeled Products
Homes
ENERGY STAR for industry (formerly Climate Wise)
Combined Heat and Power Initiative
Green Power Initiative
Industry Partnerships
Waste Wise
Natural Gas STAR Program
Landfill Methane Outreach Program
Coalbed Methane Outreach Program
Agricultural Programs (Ruminant Livestock Outreach andAgSTAR)
Landfill Rule
Voluntary Aluminum Industrial Program
PFC Emissions Reduction Partnership for the Semiconductor Industry
SF6 Emission Reduction Partnership for the Electric Power Systems
SF6 Emission Reduction Partnership for the Magnesium Industry
Partnership -with HCFC-22 manufacturers to reduce HFC-23 emissions
Significant New Alternatives Program (SNAP)
Commuter Choice Partnership Programs
SmartGrowth & Brownfields Policies Programs
Transit
Clean Air Transportation Communities Program
Ground Freight Transportation Initiative
Variable Priced Vehicle Insurance Initiative
Advanced (Tier II) Light Duty Engine
Advanced Mechanical-Hybrid Drivetrain
Urban Delivery Truck Initiative
Carbon Removal
State and Local Outreach Program
International Capacity Building
Global Change Research
                                      VI-29

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Through 2000, EPA's CPPs have also:

•      offset growth in greenhouse gas emissions above 1990 levels by about 20%
•      conserved enough energy to light 80 million homes for the year;
•      prevented NOx emissions equivalent to the annual pollution from 100 power plants; and
•      avoided greenhouse gas emissions equivalent to eliminating the pollution from about 40
       million cars for the year.

       EPA's climate change programs are on target to meet their greenhouse gas reduction goals
in 2000 as shown in Figure 1 and continue to meet the challenge of substantially higher emissions
reduction goals. Many of these programs have actually exceeded their specific goals for reducing
greenhouse gas emissions and energy consumption as shown in Table 2.
                            Figure 1. Overall Goals and
             Accomplishments for the Climate Protection Programs
           70
g.  60
O
"~  50J
     ra
     O
        "O
     e 8  40
     O 3
     I- -O
     •M ^  30
     5 =
     c S
     O .S
    20-

    10

     0
                   I Annual Achievements
                   i Annual Goals
                1995   1996   1997   1998   1999   2000   2001
        The 2000 annual achievements are estimated; final results will be available in Spring 2001.
       The programs have  a number of accomplishments through the end  of 2000 that are
highlighted in Tables 3, 4, 5, and 6 for the buildings, industry, transportation and other sectors,
respectively.
                                        VI-30

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                        Table 2. Goals and Accomplishments for Performance Measures: 1995 through 20011
Program Area/
Key Gases
Buildings
Industry C02
CH,
PFCs,
SF,
MFCs
Transportation1'
State and Local
Total
1995
Accomplished
kWh
Saved
(blionL
5.6
0.7
na
na
na
na
6.3
MMTCE
reduced
1.2
1.2
2.5
2.7
0.0
0.1
7.7
1996
Accomplished
kWh
Saved
(billion)
10.8
1.7
na
na
na
na
12.5
MMTCE
reduced
2.4
1.8
3.1
7.1
0.1
0.2
14.7
1997
Accomplished
KWh
Saved
(billion)
17.2
1.9
na
na
na
na
19.1
MMTCE
reduced
3.4
3.0
4.2
8.5
0.2
1.2
20.5
1998
Accomplished
kWh
Saved
(billion)
33.2
3.4
na
na
na
na
36.6
MMTCE
reduced
6.4
4.8
5.4
10.4
0.3
1.3
28.6
1999
Goal/Accomplished
kWh Saved
(billion)
41.7/49.9
4.3/2.2
na
na
na
na
46.14/52.1
MMTCE
reduced
8.7V12.5
7.24/5.3
8.5V8.5
10.74/155
1.9V1.1
1.6V1.4
38.7V43.8
20002
Goal/Accomplished
kWh Saved
(billion)
53.4/75.3
5.6/2.4
na
na
na
na
59.0V77.7
MMTCE
reduced
12.74/15.5
9.14/5.9
14.04/14
14.54'5/18
5.74/2.3
I.TVU
58.04/57.4
20013
Goal
kWh
Saved
(billion)
78.1
5.6
na
na
na
na
83.74
MMTCE
reduced
15.04
9.14
15.14
18.24'5
6.2*
1.94
65.54
'Metrics are not applicable to PNGV, International Capacity Building or Global Change Research.
2These results are estimated; final results will be available in Spring 2001.
32001 goals are presented here as developed in 1997 for the Second National Communication to the U.N. Framework Convention on Climate Change (FCCC). They are currently under review
        as part of the process for preparing the Third National Communication to the Secretariat of the FCCC, reporting on national progress.
4GPRA performance measure
'These goals and accomplishments do not include EPA's efforts on self-chilling cans, which EPA plans to integrate as part of the next CPP review and revision for the Third National
        Communication.
'The goals for the Transportation Program Area include GHG reduction goals for the Transportation Partner Program through 2001. The 2001 Transportation goal will be revised downward
        to reflect the elimination of the Transportation Partners Program for FY 2000 and beyond, once updated information from Third National Communication is released in 2001.
                                                                      VI-31

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>T«|He3jr Prolraa'AcwppHsllimeiiislor'EBJk's BaiWingsi Initiatives Throng

';  '  Program Area  f     ?     "'	'	'_•>	.-   A&compltshmettts	'	•
   00
   S
  1
The ENERGY STAR Buildings Partnership now represents 16 percent of the U.S. building floor space.

EPA has been successful with its public-sector work.  With partnerships with more than 250 universities and
 over 225 school districts, including for example the Los Angeles Unified School District which alone has
 over 650 schools, EPA brings superior building performance into the classroom. In the spring of 2000,
 EPA launched the ENERGY STAR label for schools. By year end, 221 K-12 schools had earned the label
 representing almost 15 million square feet of space.

 EPA continues to work with small businesses and organizations to help them lower their overhead through
 lower energy bills. Over 2,800 small businesses and organizations are working with ENERGY STAR.

EPA worked with building owners to offer a new bench marking tool that identifies the most efficient 25
 percent of the commercial building stock with the ENERGY STAR label. EPA has developed this tool for
 office buildings and K-12 schools and is working to expand it to other key building types such as retail and
 healthcare.
Also in the public sector, EPA is working with over 225 state and local governments to overcome key
 financing and budgeting barriers which continue to be a major hurdle  to energy efficiency projects in the
 public sector.  EPA developed and delivered financing training (either directly or via the web) to 11 states,
 23 local governments, and 30 school districts.
ENERGY STAR now has over 70 commercial real estate partners representing over 2.25 billion square feet
 which represents an estimated 80 percent of the office properties market. In addition, this year ENERGY
 STAR was endorsed by four influential commercial real estate industry associations including the National
 Association of Real Estate Investment Trust (NAREIT) and the Society of Industrial and Office Realtors
 (SIQR).	;	,	_____	
The ENERGY  STAR label is recognized as the national label for energy efficiency and many players
 (including retailers utilities, NGOs, etc.) across the country are using the label to promote efficiency. The
 label has achieved more than 40% public awareness as of 2000.
ENERGY STAR performance specifications were developed for new product categories including water
 coolers, traffic signals, set-top (cable) boxes and dehumidifiers.
The program includes products that represent over 60% of energy use in the average household and can help
 families reduce their energy bills by up to $400 per year with currently available products that also improve
 home comfort.
More than 1600 manufacturing companies have partnered with ENERGY STAR. They produce ENERGY STAR
 labeled products across more than 30 product categories. More than 600 million labeled products have
 been purchased.
EPA has engaged more than 100 utilities/energy service providers that serve approximately 50% of the
 households in the U.S. in promoting energy efficiency with the ENERGY STAR Label.

The program has partnered with more than 550 retailers to promote ENERGY STAR products in more than
 7,000 storefronts across the country.

An international agreement was finalized allowing the European Community to implement an energy
 efficiency labeling program for office equipment modeled after ENERGY STAR.
         The ENERGY STAR Homes program includes more than 1,600 builder partners that have built over 25,000
          labeled homes, locking in financial savings of more than $7.5 million annually for homeowners.
         EPA launched its Home Improvement Program, featuring a suite of tools and projects to help homeowners
          improve the energy performance of their homes during repair, remodeling or renovation, The program
          includes a web-based audit that recommends to homeowners the top five energy efficiency improvements
          that can be made to their homes.
                                               VI-32

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         fable 4*: Prbgram Accomplishments for EPA's Industry Initiatives Through 2000
             Program Area
                                                 Accomplishments
 Carbon
Reduction
Programs
           ENERGY STAR for industry (formerly Climate Wise). EPA integrated Climate Wise into the ENERGY STAR
            platform and welcomed 115 new partners to the program in 2000 for a combined total of 650 companies. These
            companies represent 14% of the U.S. industrial energy use. The program continues to support small and medium
            enterprises; more than 40% of the partner companies have 100 or fewer employees.
           The program continued to provide technical assistance to its partners in the areas of: (1) helping U.S. companies to
            purchase renewable energy; (2) supporting its cement industry partners in the form of an enhanced emissions
            tracking spreadsheet tailored to the unique needs of this industry; and (3) promoting opportunities for green
            power purchasing, including green power workshops in Connecticut and New Jersey.
The Combined Heat and Power Initiative recognized the first Energy STAR CHP Award-winners in 2000. Three
 companies won Energy STAR awards.  EPA also continued to explore opportunities for regulatory flexibility to
 recognize the environmental benefits of CHP applications.
           Industry Partnerships. EPA continued to work with industry partners to help them better understand their
            greenhouse gas emissions and opportunities for cost-effectively reducing these emissions.
           Waste Wise now has nearly 1,100 partners who have reported reductions of over 9 million tons of solid waste
            while saving more than $300 million through the end of 1999 from waste prevention and recycling
           Waste Wise began working with the federal sector, with 66 federal organizations as members in 2000.
           WasteWise initiated a sector challenge on electronics waste reduction which now includes 29 partners.
           EPA worked with key industry, government and NGO players in the areas of electronics, carpets, and transport
            packaging to begin developing agreements with national waste reduction targets.
 Methane
 Programs
The Natural Gas STAR Program represents 72% of transmission mileage, 49% of service connections, 40% of
 production, and 23% of gas processing.
 The Landfill Methane Outreach Program (LMOP') assisted in the development of over 45 new landfill
 gas-to-energy projects (bringing the total to nearly 200) with an additional 60 projects under construction and
 expected to be online soon. The LMOP provided technical and marketing support to another 170 landfills and
 signed on 30 new allies, for a new total number of LMOP allies of 245.
 The Coaled Methane Outreach Program (CMOP) helped reduce methane emissions through project development
 support at 23 project sites. CMOP provided high-quality, project-specific information to project developers.
 EPA assisted swine and cattle producers in developing waste management systems that produce farm revenues
 and reduce water and air pollution, as well as improving livestock efficiency. About 13 million kWh/yr of
 renewable energy was produced from farms capturing methane to provide energy for the farm and local
 community.	
 Programs
 to Reduce
   High
  Global
 Warming
 Potential
  Gases
 EPA completed an emissions measurement campaign at 6 U.S. aluminum smelters to better characterize the
  relationship between operating parameters and emissions.
 EPA continued work with 11 of the 12 U.S. primary aluminum producers representing 22 of the 23 U.S. smelters
  to better understand the generation of PFCs in the smelting process and to quantify smelter-specific emissions.
 EPA renewed the voluntary partnership program with U.S. semiconductor manufacturers who agreed to reduce
  emissions of PFCs by 10% below their 1995 baseline by 2010.
 EPA expanded the electric power systems partnership to reduce SF6 emissions to 60 partners representing 40% of
  net generating capacity. Over 80% of SF6 sales are to this sector.
 Expanded the magnesium industry partnership to reduce SF6-emissions to 15 partners representing 100% of
  primary Mg production and 60% of domestic casting capacity.  (65% of US Mg emissions).  Magnesium partners
  reported their first annual emission's estimates using EPA-designed reporting software. This information was used
  by EPA to publish the Partnership's First Annual Report.
  EPA partners with 100% of the U.S. HCFC-22 producers.  These partners use process optimization and
  abatement to reduce production by-product emissions of HFC-23, which is the most potent and persistent of the
  MFCs.
  SNAP reviewed and listed 25 substances as acceptable alternatives to ozone-depleting chemicals in over 100 end
  uses, cooperated with the fire protection industry to revise National Fire Protection Association Standard 2001 on
  Clean Agent Halon Alternatives, and encouraged the development of new, less-emissive technologies including
  secondary loop refrigeration systems.	^	^	   	__^____
                                                       VI-33

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;' • TaBIe'S. ^Program Accomplishments for; 1M*$ T^sportattoa Wtiativm Through 28fO
"'Program Area ' .; ' . Accomplishments -,<'',
Transportation
Efficiency
PNGV
EPA launched the Commuter Choice Leadership Initiative, partnering with industry leaders, DOT, state and local
governments, and leading companies nationwide.
EPA issued the National SIP Land Use Guidance to help State and local governments recognize the emission
reduction benefits of smart growth and voluntary land use policies and projects. Completed Infill
Quantification Methodology to support State efforts.
EPA initiated a national assessment of emission reductions from a range of transportation alternatives, as well as
an assessment of OTAQ program reductions for the Third National Communication to the FCC.
EPA launched pilots with three cities to model induced travel effects.
EPA achieved commitments for 20 voluntary measure programs in Atlanta, Houston, Dallas, Las Vegas, Chicago.
Over 60 communities implemented the "It Ali Adds Up to Cleaner Air" joint EPA/DOT program. Results
included: leverage of significant resources, development of additional tools and creation of a new national
network of stakeholders committed to this effort.
EPA launched the initial version of the Green Vehicle Guide Website which provides consumers with a tool to
identify cleaner, more efficient vehicles.
EPA demonstrated 72 miles per gallon (gasoline-equivalent) on a mid-size research chassis with a state-of-the-art
diesel engine and an EPA-invented, patented, and developed hybrid drivetratn.
Program Area
                Table 6. Program Accomplishments for Other Initiatives Through 2000
                                     AccomplisHments
   Carbon
   Removal
The carbon sequestration program established domestic pilot programs, collaboratively with USDA, and is
 defining and addressing the major issues related to implementation of sequestration projects both domestically
 and internationally.
EPA maintained and enhanced  a state-of-the-art capability to evaluate the technical and economic potential of
 carbon sequestration in both the forest and agriculture sectors, and conducted key analyses on sequestration
 policy issues,
EPA initiated efforts to better understand, quantify and resolve key scientific issues including those related to the
 ancillary impacts of carbon sequestration and indirect effects,	.  .	
State and Local
   Outreach
   Program
EPA completed and distributed over 4000 copies of the EPA State and Local Climate Change Outreach Kit to
 educate stakeholders on the science, impacts, resources and solutions addressing climate change.
Seven state partners completed greenhouse gas action plans (NJ, DE, NC, MT, TN, PR, UT);  17 action plans now
 completed out of 26.
One state partner completed their greenhouse gas inventory (RI); Florida initiated an inventory using new,
 streamlined process.
EPA increased the "Cities for Climate Protection Campaign" by 10 cities, bringing the total to 78.
EPA drafted 3rd document - NOx Set Aside Measurement and Verification Guidance.
EPA completed the Heat Island Reduction Initiative (HIRI) Air Quality modeling analysis, drafted life-cycle cost
 analysis on  paving,  and assessed HIRI strategies for three pilot cities.
EPA published scientific assessment study results (state/regional sea level rise maps).
EPA communicated with key audiences regarding climate change through publications, conference presentations,
 and award-winning web site.
                                                       VI-34

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         Table C

 Program Area
                                Accomplishments
  International
    Capacity
    Building
EPA leveraged U.S. experience with market-based mechanisms to help other countries design effective market-
 based programs.
EPA supported the development of rigorous bottom-up greenhouse gas inventories in 4 regions of Russia and in
 Kazakhstan, including energy fuel balances, and national estimates of selected sources such as eoal mining; EPA
 projects in the countries of the former Soviet Union have reduced greenhouse gas emissions by more than a
 million metric tons of carbon equivalent in the last five years.
EPA, with AID and DOE, assisted 26 developing countries that submitted their National Communications as
 required under the UNFCCC.
EPA and the U.S. Initiative on Joint Implementation approved 44 voluntary projects, involving over $1 billion in
 total investments in more than 20 developing and transition countries.
EPA and the U.S. Country Studies Program assisted 56 developing and transition countries inventory their GHG
 emissions and evaluate strategies for reducing GHG emissions as well as adapting to climate change.
EPA established partnerships with key developing countries to share and transfer energy efficiency program
 models developed in the U.S.
EPA, in cooperation with AID,  DOE, and the State Department, initiated the Technology Cooperation
 Agreements Pilot Project with 6 developing countries.
EPA initiated the Integrated Environmental Strategies Program assisting 6 developing countries evaluate the
 environmental and human health benefits of technologies and policies for reducing greenhouse gas emissions.
 Global Change
    Research
EPA determined the impacts of global change on coastal ecosystems in the Gulf Coast and Mid-Atlantic.
EPA completed 3 regional assessments - Mid-Atlantic, Great Lakes, & Gulf Coast - of the potential
 consequences of global change & climate variability for the USGCRP National Assessment.	
Program Goals and Objectives for 2002 and Beyond

        Despite the significant accomplishments of EPA's programs to date, there remain large
opportunities 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 - more
than  we spend on education.  Technologies are available today that can cut this  energy  use
significantly.   Other technologies are being developed that may provide even more dramatic
opportunities - such as a car that can reduce fuel use and greenhouse gas emissions from today's
standards by two-thirds without sacrificing safety and performance.
          Over the next several years, EPA will build upon  its voluntary government/industry
partnership efforts to achieve even greater greenhouse  gas reductions  by taking advantage of
additional opportunities to simultaneously reduce pollution and energy bills. EPA will continue to
break down market barriers and foster energy efficiency programs, products and technologies, and
cost effective renewable energy. It will establish international partnerships that will link industrial
efficiency, reduction of greenhouse gases and sustainable development.  In 2002, EPA's climate
change programs are projected to:
                                              VI-35

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       reduce greenhouse gas emissions from projected levels by more than 73 MMTCE annually
       through its programs, reducing the growth in greenhouse gas emissions above 1990 levels
       by about 20%;
•      reduce U.S. energy consumption from projected levels by more than 85 billion kilowatt hours
       annually;
•      reduce other forms of pollution, including air pollutants such as NOx, particulate matter and
       mercury  from energy  efficiency -and reduce  water pollution (from  better fertilizer
       management).  NOx emissions will be reduced by over 180 thousand tons;
•      provide over $6 billion in energy bill savings to consumers and businesses that use energy
       efficient products for the year;
*      demonstrate  technology for an 85 miles per gallon mid-size family  sedan that has low
       emissions and is safe, practical, and affordable;
*      provide more flexible and energy efficient alternatives for commuters and reduce vehicle
       miles traveled by more than 2 billion miles;
•      assist approximately 12 developing counties and countries with economies in transition in
       building  their capacity to participate  actively in  international discussions of climate
       protection and reduce emissions of greenhouse gases through cost-effective measures and
      . assist in the fulfillment of the U.S. obligations under the UNFCCC to facilitate technology
       transfer to developing countries;
       produce measurable  international  greenhouse gas  emission reductions through clean
       industrialization partnerships with key developing countries;
•      in close cooperation with USDA, identify and develop specific opportunities to sequester
       carbon in agricultural soils, forests, other vegetation and commercial products, with collateral
       benefits for productivity and the environment; and
»      assess the consequences of global change on human health and ecosystems.

         EPA's greenhouse gas reduction and energy  savings goals were developed through an
interagency process in 1997 and communicated to the Secretariat as required under the Framework
Convention on Climate Change (FCCC) in the Second National Communication ("U.S. Climate
Action Report -1997"). The FCCC was signed by President Bush and ratified by the United States
Senate in 1992. Work is currently being undertaken by an interageney task force preparing the Third
National Communication, a portion of which will describe policies and measures (such as ENERGY
STAR and PNGV) undertaken by the U.S. to reduce greenhouse gas emissions, implementation
status of the policies and measures, and their  actual and projected benefits.  One result of this
interagency review process will be a refinement of future goals for these policies and measures
which will be communicated to the Secretariat  of the FCCC in 2001 as part of the Third National
Communication.

         EPA will be working towards the following goals in each of the following program areas
over the next ten years:

                                         VI-36

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Buildings: The Buildings Sector represents one of EPA's largest areas of potential, and at
the same time is one of its most successful. In the buildings sector, EPA will expand upon
the successful ENERGY STAR partnerships (including ENERGY STAR Labeling and the
ENERGY STAR Buildings Program). EPA will work toward the goal of offsetting about
24% of the growth in greenhouse gas emissions above 1990 levels expected by 2010 in this
sector. EPA's programs will contribute more than 40 MMTCE annually in greenhouse gas
reductions by 2010 while saving businesses and  consumers more than $14 billion.  The
efforts necessary in 2002 to continue to achieve these 2010 goals are detailed in Table 7.

Industry:  EPA will continue to build on the success of the voluntary programs in the
industrial sector, focusing on reducing C02 emissions and continuing the highly successful
initiatives to reduce methane emissions and emissions of the high global warming potential
gases. EPA's goals for these efforts are: (1) greatly enhance the rate of energy and resource
efficiency improvements  in industry between now and  2010 (working  with DOE), (2)
cost-effectively return emissions of methane to 1990 levels or below by 2010, and (3)
cost-effectively limit emissions of the more potent greenhouse gases (MFCs, PFCs, SF6).
EPA will deliver an estimated 75 MMTCE annually by 2010 from these efforts. The efforts
necessary in 2002 to continue to achieve these 2010 goals are detailed in Table 8.

Transportation: EPA will continue to grow its successful transportation efficiency initiatives
including its voluntary Commuter Choice Partnership Program, Ground Freight Management
Initiative, Clean Air Transportation Communities award program, and  Smart Growth
initiatives. These programs will deliver communities, commuters and the freight delivery
industry substantial energy savings and increased flexibility in meeting their transportation
needs. EPA's Variable Priced Auto Insurance initiative also shows tremendous potential for
partnering with the insurance industry and commissioners to provide a voluntary incentive
for less driving. The Partnership for a New Generation of Vehicles (PNGV) joins EPA and
four other Federal agencies with Ford, General Motors and DaimlerChrysler in a partnership
to develop a new generation of safe, attractive, affordable vehicles with ultra low emissions
and high fuel efficiency. By 2010, the R&D component of the original PNGV program will
have been completed, and a significant number of PNGV technology vehicles should
penetrate into the light duty fleet. On a per-vehicle basis, these technologies will generate
a two-thirds reduction in greenhouse gas emissions relative to current baseline vehicles. The
21st Century Truck program is a government-industry partnership established in 2000 whose
purpose is to develop a new generation of clean and efficient line-haul trucks, urban delivery
trucks, and urban buses. The program's fuel efficiency improvement goal is to produce, by
2010, production prototype vehicles that double the Class 8 line-haul truck fuel efficiency
on a ton-miles-per-gallon basis, triple the Class 2b and 6 truck (delivery van) fuel efficiency
on a ton-miles-per-gallon basis and triple the transit bus fuel efficiency on a miles-per-gallon.
The efforts necessary in 2002 to achieve these goals are detailed in Table 9.
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Carbon Removal:   EPA will  build domestic  and international consensus  around the
integration of carbon sequestration activities into a comprehensive climate strategy.  Carbon
can be sequestered through changes in both forestry and agricultural practices, but these
actions are not currently well understood or accepted in many sectors of the international and
environmental communities. EPA is working collaboratively with USDA to address the
misperceptions regarding carbon sequestration and to ensure that this important mitigation
option is developed in an environmentally sound and economically efficient way. EPA and
USDA will identify and develop specific opportunities to sequester carbon in agricultural
soils, forests,  other vegetation and commercial products, with collateral benefits for
productivity and the environment. EPA expects to achieve a carbon removal potential of up
to 25 MMTCE by 2010. The  efforts necessary in 2002 to achieve these 2010 goals are
detailed in Table 10.

_State_.and_Local: The program will continue its efforts as a capacity-building program that
provides state and local governments with guidance and technical information about climate
change impacts, mitigation and adaptation.  However, it has expanded its focus to  include
guidance and technical information about the air quality, health, and economic benefits of
reducing greenhouse gas emissions and developing practical risk reduction strategies. States
and  localities have a significant role  and home-court advantage  in the reduction of
greenhouse gases, provided they are equipped with the tools they need to integrate climate
change into their daily decisions.  The expansion of the program will enable state and local
decision-makers to more effectively address their environmental and economic goals in a
comprehensive manner.  The program will  provide a variety of technical and outreach or
education services related to clean air and climate change issues. These efforts are detailed
in Table 10.

International Capacity Building: EPA is working with a number of key developing countries
to help them: 1) design and implement programs to expand the use of low greenhouse gas
technologies; 2) identify, evaluate and implement strategies for achieving multiple social
benefits while reducing greenhouse gas emissions; and 3) design market-based systems to
facilitate more significant commitments by  these countries under the FCCC as well as the
infrastructure necessary to ensure compliance. Over the next ten years, EPA's goals are to:
1) catalyze significant increases in voluntary, market-driven programs for increasing the use
of low greenhouse gas technologies; 2) achieve the full integration of climate considerations
into countries' development plans; and 3) establish the technical basis for major developing
countries  to make significant commitments under the Climate Convention.  The efforts
necessary in 2002 to meet these goals are detailed in Table 10.

Global Change Research: In FY 2002, the  Agency will  conduct research and assessment
activities to examine the potential effects of climate change and climate variability on: (1)
human health; (2) air quality; (3) water  quality; and (4)  aquatic ecosystem health. These
research and assessment activities will focus on developing integrated human health and
ecosystem health assessments (e.g., assessing the potential spread of infectious diseases due
to the impact of climate change on ecosystems).  Specifically, the Global Change research
program will conduct the following assessments:

                                  VI-38

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  1.    The potential consequences of changes in extreme weather (heat and cold) for human
       mortality and morbidity;
  1.    The potential consequences of global change on changes in air quality (tropospheric
       ozone);
  2.    The potential consequences of climate and land-use changes on water and vector-
       borne diseases;
  3.    The potential consequences of climate change on aquatic ecosystems; and
  4.    The potential consequences of climate change on water quality (pollutants and
       microbial pathogens).

       Investments  in  FY  2002 will support the initiation  of the Second  National
Assessment, as required under the Global Change Research Act of 1990 (GCRA '90). EPA
is one often federal agencies contributing to the National Assessment activities organized
through the US Global Change Research Program (USGCRP). The National Assessment is
an ongoing process mandated by GCRA '90 with scheduled reports to Congress in FY 2000
and not more than every four years thereafter. EPA will expand efforts to assess the impact
of global change on air quality and water quality and quantity, including work to understand
the interactions between regional air quality and global change.

       Research pertaining to human health will support the EP A-sponsored Regional and
Sectoral Assessments as part of die Second U.S. National Assessment.  Also, particular
attention will be given to the assessment of: (1) the effects of climate change on weather-
related morbidity; and (2) the effects of global change on water- and vector-borne diseases.

       Climate change  is also expected to have a significant impact on air quality  in the
United States.  Warmer temperatures will increase atmospheric formation of tropospheric
ozone, and air pollutant emissions associated with energy production may increase due to
increases in air conditioning use.  Beginning in F Y 2002, research and assessment activities
hi this area will examine the potential regional effects of global change (and climate change
and climate variability, in particular) on tropospheric ozone and particulate matter.

       Consistent with the  Global Change Research Strategy,  which articulates the
program's long-term goals for developing comprehensive assessments of global change
issues and the research to support such efforts, the effects of stressors such as climate change,
land use change, and UVB radiation will be investigated. This research will focus on coastal
areas that are extremely vulnerable to sea-level rise and are therefore considered high risk.
Another component of these  research and assessment activities focuses on the impacts of
multiple stressors on ecosystem health, including coral communities. To help assess impacts
of UVB on  ecosystem  and human health, EPA will  continue to operate a 21-site UVB
monitoring network with 7 urban and 14 rural (located in National Park Service areas) sites.

       These efforts are detailed in Table 10.

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                   v 'BitiWings Programs:
                      W'itJtm-fY 2602 President's Budset Request
                                                                       of Planned Activities •
ENERGY
  STAR
Buildings
Actively promote EPA's new buildings benchmarking tool and work with building owners and managers to benchmark
 11,000 additional buildings including 2,500 schools and 1,500 federal facilities.
Award 2,750 additional ENERGY STAR labels to buildings that reach a benchmark score between 75 and 100.
Continue to develop benchmarking tools for two additional space types such as healthcare, lodging, food service and sales,
 and public assembly, providing benchmarking capabilities for 75% of the total US floor space.
Continue to actively recruit new small businesses and organizations into Energy Star for small business to reach over
 6,000 participants by the end of 2002.
Expand public sector work to increase the number of partnerships with schools and universities and state and local
 governments to over 1100.
Expand work to improve the efficiency of the federal government - work with other agencies to implement key pieces of
 the Federal Executive Order on building energy efficiency, particularly focusing on assisting agencies to benchmark their
 buildings and to procure energy efficient products.
ENERGY
  STAR
 Products
Achieve 45% recognition of the ENERGY STAR label in the U.S.
Coordinate with utility and state partners representing more than 60% of US households in the design and operation of
 effective state-level energy efficiency programs.
Train over 10,000 contractors and sales staff, allowing the value and benefits of ENERGY STAR to be represented to over 4
 million consumers.
Enhance ENERGY STAR labeled product quality through a review of performance specifications for 5-10 product
 categories.
Continue working with retailers and equipment contractors to ensure that consumers receive clear information when in the
 market to purchase products.
Continue working in partnership with the European Community in implementing an energy efficiency labeling program
 for office equipment modeled after ENERGY STAR.
Promote the purchase of more than 150 million ENERGY STAR labeled products in 2002.
ENERGY
  STAR
  Homes
Over 46,000 new homes are expected to be constructed as ENERGY STAR in 2002 .
Promote ENERGY STAR Labeled New Homes in 15 geographic areas.
Expand ENERGY STAR to include 75% of the housing stock of the national builders, Pulte, Ryan and Centex.
Expand ENERGY STAR in the modular housing industry to include 33% of their housing stock.
Achieve 25 % penetration of ENERGY STAR in the manufactured housing industry.
Promote ENERGY STAR to state and local housing authorities as the platform for their affordable housing programs.
Expand "ENERGY STAR in Kitchens" promotions with 6 utilities and 2 additional national retail chains.
Expand the national Duct and Air Sealing Program for existing homes.
Expand a whole house upgrade program that encourages home owners to consider energy efficiency improvements when
 performing whole-house renovation to geographic areas that can provide suitable contractor infrastructure.
Promote Bench Marking as a major tool to spur homeowners to make energy efficiency home improvements.	
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                     Table 8. Industry Programs:  Description of Planaed Activities
                                                                 Budget Request
  ENERGY
  STAR for
   industry
  (formerly
Climate Wise)
Enhance and expand the ENERGY STAR program for industry by developing energy and related productivity
 benchmarks of industrial plant performance for five U.S. industries.
Expand the energy peer exchange networking opportunities for U.S. industry and the ENERGY STAR partners
 by holding 3 national networking meetings.
Conduct two industrial sector focus sessions to recruit two industrial sectors to partner with ENERGY STAR to
 improve their energy performance.
  Combined
  Heat and
    Power
  Initiative
Implement CHP Partnership Program working within 2 states (IL and TX). The Partnership Program will work
 with several hundred industrial coal-fired boilers in these states for conversion to clean, efficient gas-fired
 CHP.
Implement CHP Power Quality Initiative working with internet data centers and telecom switching stations to
 meet their reliable power needs with CHP.
Promote recognition of CHP's benefits in environmental regulations.
 Green Power
  Initiative
Launch Green Power Partnership Program in the Mid-Atlantic region. The Partnership Program will work with
 Charter Partners and local governments to remove market barriers to renewable ("green") power purchases.
Announce 40 new corporate/local government green power purchases.
Launch effort working with states to promote customer choice through electricity restructuring in an
 environmentally friendly manner.
  Industry
 Partnerships
Complete development of corporate greenhouse gas inventory methodology and tracking mechanism.
Launch Corporate Greenhouse Gas Inventory Partnership Program with 10 large corporations announcing
 voluntary greenhouse gas reduction goals.
Continue efforts to work with industry partners to help them better understand their greenhouse gas emissions
 and opportunities for cost-effectively reducing these emissions.
 Waste Wise
Maintain Waste Wise to include 1,250 partners.
Provide direct technical assistance for resource management, a performance-based contracting approach to
 overcome market barriers to waste reduction in the waste service industry.
Expand Product Stewardship to develop a comprehensive national approach for electronics recycling with
 tangible industry commitments and state support, leading to measurable increases in electronics recycling and
 associated climate benefits. In addition, pursue national targets for carpet recovery and meaningful increases in
 packaging recycling rates.
Enhance waste-related Greenbuildings efforts in the areas of criteria development and WasteWise recycled-
 content building challenges. EPA will spur demand for recovered materials by supporting materials and
 improved waste management for Greenbuilding programs, partnering with industry and states, and responding
 to request for technical assistance.
Work with stakeholders in developing a comprehensive waste sector strategy for greenhouse gas reductions.
Evaluate the economic and climate benefits of waste sector technologies such as bioreactor landfills, recycling
 collection systems, waste gasification systems,  waste collection and transportation operations. Develop
 guidance manuals and training programs to overcome technical barriers and promote market acceptance for
 cost-effective climate mitigation technologies.
  Methane
  Programs
Expand the Natural Gas STAR program in all sectors to represent 87% of gas transmission pipelines, 58% of
 distribution service connections, 57% of domestic gas production, and 25% of gas processing.
Expand EPA's Coalbed Methane Outreach  Program (CMOP) to work with key stakeholders to expand the
 market for new greenhouse gas reduction  technologies, including flares at wells producing medium quality gas
 and combustion technologies appropriate  for mine ventilation air. EPA will facilitate one demonstration
 project.
Expand the Landfill Methane Outreach Program (LMOP) to assist a total of 220 landfills with gas utilization
 projects, to promote newer energy applications, and to increase methane recovery efficiency at existing
 projects.
In the agriculture sector, continue expansion of methane-reducing technologies to help ensure clean water and
 air for the livestock sector.
                                                      VI-41

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                                                  (continued)
 Programs to
 Reduce High
   Global
  Warming
Potential Gases
The Voluntary Aluminum Industry Partnership (VAIP) will continue to deliver reductions, with VAIP
 participants reducing the industry's emissions of PFCs by at least 45% percent from the 1990 baseline year.
The VAIP will conduct a smelter measurement campaign to complete the U.S. smelter-type data set and to
 validate past process-type measurements.
Work with the US semiconductor partners to achieve their 10% PFC emissions reduction goal by 2010 from
 their 1995 baseline.
Continue to build the SF6 Emissions Reduction Partnership for Electric Power systems (utilities) to 100
 (representing 60% of the industry's net generating capacity).
Expand participation in the SF6 Emission Reduction Partnership for the Magnesium Industry to represent greater
 than 80% of U.S. industry emissions.  Facilitate global information sharing to achieve cost effective emission
 reductions of 0.3 MMTCE.
Maintain an effective partnership with HCFC-22 chemical manufacturers to reduce emissions of HFC-23.
Expand the stewardship programs to reduce high gwp emissions from other key sources such as the military and
 ODS replacement industries.
SNAP expects to review and list 10 alternatives to ozone-depleting substances, focusing on the identification of
 safe and energy-efficient substitutes, including MFCs, for HCFCs in various sectors.   	
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                                                                                         Activties'
Transportation
   Efficiency
Continue implementation of the Commuter Choice Partnership Program- build national business partnership
 program that takes advantage of recent tax code changes that provide financial incentives for green commuting
 options. Expand to over 1,000 partners.

Develop the Ground Freight Management Initiative—Identify and implement voluntary truck technology, freight
 management practices, and infrastructure opportunities (including E-commerce) that substantially reduce GHG
 and criteria air pollutants.
Create and launch Green Mobility Choice - create & implement program which is on par with Energy Star- quick
 and easy way to differentiate clean from dirty transport: commuting, fuels, vehicles including vehicle labeling etc.
Develop Emerging Strategies—Identify and develop  new innovative transportation programs that will substantially
 reduce GHG and criteria air pollutants from the transportation Sector. Next generation of partnership programs
 developed: examples include Variable Priced Auto Insurance,  and Transit for a Better Environment.
Expand implementation of the Clean Air Transportation Communities Program—Catalyze and support community
 innovations that result in measurable reductions in  VMT and cleaner technologies.
Promote Smart Growth through the newly finalized SIP Land Use Guidance—implement finalized national policy
 and partner with at least five states to further Smart Growth and Air Quality goals.
 Continue implementation of the Keep America Growing, Induced Highway Travel, and Metropolitan/Regional
 Transportation Planning Partnerships-Collaborative partnerships to (l)evaluate model capabilities and estimate
 induced travel, (2) establish regional methodology  for capturing land use air quality benefits (3) undertake
 educational efforts to promote tools that will enhance smart growth efforts and transportation equity across U.S.
Continue implementation of the Outreach/Public Education Programs IRAQ Center and "It All Adds Up to
 Cleaner Air"— Increase public awareness of Transportation/Air Quality Connection.  Continue support for state of
 the art website for multi-state, State, local, tribal transportation/air quality professionals.
Establish a partnership program with states, localities and industry to recognize significant progress on the use of
 alternative fuel vehicles (AFVs). EPA, in cooperation with DOT and DOE, will promote and encourage the use
 of dedicated, clean AFVs, such as compressed natural gas (CNG), electric and fuel-cell vehicles.
Continue to fulfill statutory obligations in the fuel economy  arena, which includes administering the fuel economy
 labeling, gas guzzler, gas mileage  guide, and CAFE programs  in conjunction with other government agencies.
Develop projects to reduce diesel idling time at truck stops and  along highways. EPA will partner with States and
 manufacturers of idling control devices to help install idle control technologies on trucks and at truck stops that
 could save I gallon of diesel fuel for each hour a vehicle idles.

Conduct outreach efforts to promote public awareness of and to implement future enhancements to the Green
 Vehicle Guide Web Site that was launched in 2000.
    PNGV
Demonstrate an optimized, cost-effective mechanical hybrid vehicle powertrain in a chassis test bed that will
 achieve 85 mpg without sacrificing safety or performance.
Demonstrate Tier II emission levels in a unique EPA hybrid engine design utilizing renewable fuel and achieving
 diesel engine efficiency levels; work towards development of a production prototype 80 mpg midsize vehicle that
 meets Tier II emission levels by model year 2004.
  21st Century
     Truck
Initiate engineering programs to target transformation of EPA-patented light-duty engine and mechanical drivetrain
 components to meet the more demanding size, performance, and lifecycle durability requirements of urban
 delivery trucks.	
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                                                                              Jned Activities  I
                                 Within  FY2U02 President^ Budget Rogues?  ,    -'.   •   ''
   Carbon
   Removal
Continue to collaborate with USDA on the development of several key pilot projects demonstrating the viability
 of various carbon sequestration activities.
Continue work on enhancing the ability of major macroeconomic models to evaluate the economic value of
 carbon sequestration to fully appreciating the role of carbon sequestration in addressing climate change.
Bring together leading experts from government, industry, and the research community to address several difficult
 issues related to sequestration projects, including permanence, leakage, monitoring, and verification.
Enhance efforts to better quantify the ancillary impacts of carbon sequestration..
Work with stakeholders in the forestry and agriculture sectors to promote the development of environmentally
 sustainable and economically attractive carbon sequestration projects domestically and internationally,
State and Local
Provide support to help states conduct analyses of the co-benefits of greenhouse gas mitigation.
Assist states to update inventories and assess climate change policy impacts on state economies.
Develop new tools and models that build understanding of the broader benefits of climate protection.
Integrate multi-pollutant emission reduction strategies in State Implementation Plans (SIPs).
Develop tools to facil itate adoption of heat island reduction activities at the city level and in SIPs.
Provide broad outreach for capacity-building through the EPA global warming website, an electronic list serv
 messaging service, a guide to integrating climate change into existing decisions, a best practices clearinghouse to
 promote multi-pollutant emission reduction strategies (e.g., energy efficiency, sustainability, clean energy and
 other GHG mitigation measures), information about state forest carbon data and state legislative activity related
 to greenhouse gases, and development/dissemination of success stories.
Translate key scientific findings (as expected in the upcoming Third Assessment Report from the
 Intergovernmental Panel on Climate Change) into a format more readily understandable to the public.
Increase awareness of global, regional, and local impacts of climate change for targeted groups, including outdoor
 enthusiasts, coastal communities, and decision makers in key business sectors. Gather stakeholder input to
 develop performance metrics and evaluate effectiveness of communication.
Develop risk reduction strategies to encourage effective public response to climate change, including
 development of strategic coastal response program.
 International
   Capacity
   Building
Continue cooperation with China, Mexico, Chile, Argentina, Brazil, Korea, South Africa and India.
Assess health benefits, and design of compliance infrastructure and market-based mechanisms, in order to
 increase incentives and capacities for a more level environmental playing field internationally.
Initiate regional expert networks and training programs to promote widespread application of multiple benefit
 environmental strategies, including greenhouse gas reductions.
Cooperate with other international organizations such as the World Health Organization, UNEP, the World Bank
 and the Global Environment Facility, to expand application of clean technology strategies through quantification
 of multiple benefits.
Develop partnerships between state and local governmental organizations in the U.S. and developing country
 national and local governments to develop and implement strategies for reducing greenhouse gas emissions
 while achieving other critical social benefits.
Work with export credit agencies (EXIM Bank, QPIC, etc) and commercial finance institutions to identify and
 overcome barriers to commercial investment in clean technologies in developing countries.
                                                       VI-44

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                    Table;l0.
                             Within FY 2002 President's Budget Request
                               ~               * ••    "5    «=»          ''*'""
                               _ •-    (continued) _ '<     "
 31obal Change
   Research
Conduct research and assessment activities to examine potential effects of climate change and variability on:
 human health; air quality; water quality; and aquatic ecosystem health, focusing these activities on developing
 integrated human health and ecosystem health assessments (e.g., assessing the potential spread of infectious
 diseases due to the impact of climate change on ecosystems).
Expand work under the Second National Assessment, including:
 Efforts to understand the interactions between regional air quality and global change;
 Research pertaining to human health, with an emphasis on the effects of climate change on weather-related
 morbidity, and the effects of global change on water- and vector-borne diseases.
Begin research and assessment activities examining the potential regional effects of climate change and variability
 on tropospheric ozone and particulate matter.
Continue investigating the effects of stressors such as climate change, land use change, and UV-B radiation,
 focusing on coastal areas and on the impacts of multiple stressors on ecosystem health, including coral
 communities.
Continue to operate a 14-site UV-B monitoring network (located in National Park Service areas) to help assess
 impacts  of UV radiation on ecosystem and human health. 	
FY 2002 Change from FY 2001
EPM
               (+119,600) This increase reflects an increase in workforce costs.
S&T
Research
(-1,371,900) The FY 02 request is $1,371,900 below the FY 2001 Enacted budget level
due to Congressional  earmarks received during the FY  2001  appropriations process
which are not included in the FY 2002 President's Request.

(+$864,600, +0.5 FTE) Resources will be increased for EPA's assessments that are part
of the  U.S.  Global Change  Research  Program's  (USGCRP's) ongoing  National
Assessment of the Consequences of Climate Change and Variability on the United States.
The National Assessment process will address key new assessment questions of concern
to stakeholders that were raised in the First National Assessment.

(-$1,597,000, -10 FTE) In order to  fund higher priority ecosystem research in other
goals, including effects of excess nitrogen from atmospheric or other sources on aquatic
ecosystems, the Agency will decrease emphasis on efforts to evaluate the consequences
of global change on terrestrial ecosystems. This shift in emphasis is consistent with the
Agency's Ecosystem Research Strategy.
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Annual Performance Goals and Performance Measures

Reduce Greenhouse Gas Emissions

In 2002    Greenhouse gas emissions will be reduced from projected levels by approximately 73 MMTCE
           per year through EPA partnerships with businesses, schools, state and local governments, and
           other organizations thereby offsetting growth in greenhouse gas emissions above 1990 level by
           about 20%.

In 2001    Greenhouse gas emissions will be reduced from projected levels by approximately 66 MMTCE
           per year through EPA partnerships with businesses, schools, state and local governments, and
           other organizations thereby offsetting growth in greenhouse gas emissions above 1990 level by
           about 20%.

In 2000    Greenhouse gas emissions will be reduced from projected levels by more than 58 MMTCE per
           year through EPA partnerships with businesses, schools, State and local governments, and other
           organizations thereby offsetting growth in GHG emissions above 1990 level by about 20%. Data
           available mid-2001.

In 1999    EPA reduced US greenhouse gas emissions by 46 million metric ton carbon equivalent (MMTCE)
           per year through partnerships with businesses, schools, state and local governments, and other
           organizations.
Performance Measures:
Annual Greenhouse Gas Reductions -
All EPA Programs
FY 1999
Actuals
46
FY 2000
Actuals
FY2001
Estimate
Greenhouse Gas Reductions from EPA's
Buildings Sector Programs (ENERGY STAR)   12.7

Greenhouse Gas Reductions from EPA's
Industrial Efficiency/Waste Management
Programs                                  4.5

Greenhouse Gas Reductions from EPA's
Industrial Methane Outreach Programs        8.5

Greenhouse Gas Reductions from EPA's
Industrial HFC/PFC Programs                15.0

Greenhouse Gas Reductions from EPA's
Transportation Programs                     1.1

Greenhouse Gas Reductions from EPA's
State and Local Programs                    1.6
On track    66
            On track    15.0
            On track    9.1
            On track    15.1
            On track    18.2
                       6.2
            On track    1.9
FY 2002
Request
           73
                       17.2
                       9.1
                       16.3
                       21.9
                       6.7
                       2.2
           MMTCE
                       MMTCE
                       MMTCE
                       MMTCE
                       MMTCE
                       MMTCE
                       MMTCE
Baseline:    The baseline for evaluating program performance is a forecast of U.S. greenhouse gas emissions
            in the absence of the Climate Change Action Plan programs. The baseline was developed as part
            of an interagency evaluation of the Climate Change Action Plan in 1997, which built on a similar
            baseline forecast that was developed in 1993 for the Climate Change Action Plan. The updated
            baseline includes energy forecasts and economic growth projections. The baseline is discussed
            at length in the Climate Action  Report 1997, which includes a discussion of differences in
            baselines between the original Climate Change Action Plan and the 1997 baseline update. The
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            baseline is currently under review as part of the interagency evaluation process for preparing the
            Climate Action Report 2001.

Reduce Energy Consumption

In 2002     Reduce energy consumption from projected levels by more than 85 billion kilowatt hours,
            contributing to over $10 billion in energy savings to consumers and businesses.

In 2001     Reduce energy consumption from projected levels by more than 75 billion kilowatt hours,
            contributing to over $9 billion in energy savings to consumers and businesses.

In 2000     Reduce energy consumption from projected levels by about 60 billion kilowatt hours, resulting
            in over $8 billion in energy savings to consumers and businesses that participate in EPA's climate
            change programs. Data available mid-2001.

In 1999     US energy consumption was reduced by 50 billion kilowatt hours per year, including annual
            energy bill savings to consumers and businesses of over $3 billion.

Performance Measures:                      FY1999    FY2000     FY2001    FY2002
                                           Actuals     Actuals      Estimate    Request

Annual Energy Savings - All EPA Programs    50          On track     75         85          Billion kWh

Baseline:    The baseline for evaluating program performance is a forecast of U.S. greenhouse gas emissions
            in the absence of the Climate Change Action Plan programs. The baseline was developed as part
            of an interagency evaluation of the ClimateChange Action Plan in 1997, which built on a similar
            baseline forecast that was developed in 1993 for the Climate Change Action Plan. The updated
            baseline includes energy forecasts and economic growth projections. The baseline is discussed
            at length  in the Climate Action Report 1997, which includes a discussion of  differences in
            baselines between the original Climate Change Action Plan and the  1997 baseline update. The
            baseline is currently under review as part of the interagency evaluation process for preparing the
            Climate Action Report 2001.

Technology for PNGV

In 2002     Demonstrate technology for an 85 MPG mid-size family sedan that has low emissions and is safe,
            practical,  and affordable.

In 2001     Demonstrate technology for an 80 MPG mid-size family sedan that has low emissions and is safe,
            practical,  and affordable.

In 2000     Demonstrated technology for a 72 mpg mid-size family sedan that has low emissions and is safe,
            practical,  and affordable.

In 1999     Fully demonstrated that an American family car can attain over 60 miles per gallon on the Federal
            Test Procedure without loss in utility, safety, and emissions control performance.

Performance Measures:                      FY 1999    FY2000     FY2001    FY2002
                                           Actuals     Actuals      Estimate    Request

Fuel Efficiency of EPA-Developed PNGV Concept
Vehicle over EPA Driving Cycles Tested       60          72          80         85          MPG

Baseline:    The baseline for the PNGV fuel economy goal is the average fuel  economy of representative
            domestic midsize family sedans (Concorde/Taurus/Lumina) in model year 1994.
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Analysis, Assessment, and Reporting Support

In 2002     Provide  analysis,  assessment,  and  reporting  support  to  Administration  officials, the
            Intergovernmental Panel on Climate Change, and the Framework Convention on Climate Change.

In 2001     Provide  analysis, assessment, and reporting  support  to  Administration  officials, the
            Intergovernmental Panel on Climate Change, and the Framework Convention on Climate Change.

In 2000     Provided analysis, assessment,  and  reporting  support  to  Administration  officials, the
            Intergovernmental Panel on Climate Change, and the Framework Convention on Climate Change.

Performance Measures:                      FY 1999    FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Annual GHG Inventory (FCCC)               1111           Inventory

Support on 3rd US National Communication to
the FCCC                                                          1                       Report

Baseline:    N/A

International Capacity Building

In 2002     Assist 10 to 12 developing countries and countries with economies in transition in developing
            strategies and actions  for reducing emissions of greenhouse gases and enhancing carbon
            sequestration.

In 2001     Assist 10 to 12 developing countries and countries with economies in transition in developing
            Strategies and actions  for reducing emissions of greenhouse gases and enhancing carbon
            sequestration.

In 2000     Assisted at least 10 developing countries and countries with economies in transition in developing
            strategies and actions  for reducing emissions of greenhouse gases and enhancing carbon
            sequestration.

In 1999     Assisted  9 developing countries and countries with economies in transition in developing
            strategies and actions  for reducing emissions of greenhouse gases and enhancing carbon
            sequestration.

Performance Measures:                      FY 1999    FY2000    FY2001     FY2002
                                           Actuals     Actuals     Estimate     Request

Countries Assisted                           9           10          10          10         Countries

Baseline:    n/a

Carbon Removal

In 2002     In close  cooperation with USDA, identify and assess opportunities to  sequester carbon in
            agricultural soils, forests, other vegetation and commercial products, with collateral benefits for
            productivity and the environment, with carbon removal potential of up to 25 MMTCE by 2010.

In 2001     In close cooperation with USDA, identify and develop specific opportunities to sequester carbon
            in agricultural soils, forests, other vegetation and commercial products, with collateral benefits
            for productivity and the environment, with carbon removal potential of up to 25 MMTCE by
            2010.

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Performance Measures:
Infrastructure for Carbon Sequestration
Activities Developed

Modeling Capability and Pilot Project
Implementation
FY 1999
Actuals
FY2000
Actuals
FY2001
Estimate
                        9/30/2001
FY2002
Request
                                               Pilot Projects
Baseline:    FY 2002 is the third year of carbon sequestration activities.  EPA's focus will be on continued
            infrastructure development.
Research

Global Change Research - Human Health and Ecosystem

In 2002      Complete the problem formulation phase of an assessment of the consequences of global change
            on aquatic ecosystems at a regional level.

In 2002      Complete the problem formulation phase of an assessment of the consequences of global change
            on air quality — specifically, tropospheric ozone— at a regional level.

In 2002      Complete all contributing research  and a report on the problem formulation  phase  of an
            assessment of the consequences of climate change on human health — specifically, weather-related
            morbidity — at the national and regional levels.

In 2001      Assess the consequences of global change (particularly climate change and climate variability)
            on human health and ecosystems.

In 2000      Work to assess the impacts of global change on ecosystem services was delayed until FY02.

In 2000      EPA assessed the consequences of global change and climate variability on human health by
            completing the products below and other research activities.

In 1999      Assessments linking regional hydrology to climate change were delayed until the 2nd quarter of
            FY200I.

In 1999      A paper on problem formulation for ecosystem services sector assessments has been submitted
            to a peer-reviewed journal. A draft chapter that develops the "problem formulation" framework
            has been included in the Mid-Atlantic Regional Assessment. The climate change indicators report
            is delayed.
Performance Measures:
Assess potential effects of global change on
ecosystem services.

Complete a Health Sector Assessment of the
potential consequences of climate change and
variability for public health, for the USGCRP
National Assessment process.

Provide preliminary results  from a case study
which will determine how climate change &
variability affect the formation of trop. ozone
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
            30-Sep-2002
                                    indicators
                                                assessment
                                                  VI-49

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in a city & consider the viability of certain
adaptation options                                        N/A                               results

Develop prototype ecological and health data
and information system to integrate with the
Global Climate Data and Information System
(GCDIS).                                               1                                  info, system

Report on problem formulation for
ecosystem services sector assessment.          1                                              report

Report on the development and use of climate
change indicators.

Report on the potential effects of climate change
on urban air quality.                                                  1                       report

Preliminary report assessing potential health
effects of global change by linking human health
and ecological risk,                                                   1                       report

Complete initial assessment of air quality impacts
of several potential transportation sector
technology paths as input to a study of global
change on tropospheric ozone concentrations.                           1                       assessment

Increase the functionality of Global Program's Data &
Info. Mgt. System by adding 2 modules: (1) statistical,
visualization & GIS tools; (2) knowledge-based
interface for dynamic database management.                                        2          modules

Publish report on the effects of climate change on
weather-related morbidity in the U.S.                                              1          report

Publish report on the effects of global change on
air quality (tropospheric ozone) in the U.S.                                          1          report


Publish reports supporting analysis of the
comparative risk of UV radiation and habitat
quality to amphibian populations across N.
America in support of US Global Change
Research Program assessments.                                                    09/30/2002 analysis

Publish report on the effects of global change
on aquatic ecosystems in the U.S.                                                  1          report

Peer-reviewed reports for decision-makers and
the public on the potential consequences of global
change on 3 regions and on human health, which
are the finished products of a multi-year effort.                          3                       reports

Baseline:    The US National Assessment process has revealed research needs in a number of areas. In FY
            2002, EPA is pursuing assessments to address needs in three of these areas. The problem
            formulation processes will organize the assessments by establishing the state of knowledge,
            identifying  endpoints of concern with  stakeholders, and identifying key research gaps.  The

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          assessments will inform decision makers as they consider options for adapting to global change
          and other stresses.

          Human Health: The Health Sector Assessment Team noted that much attention has been paid to
          weather-related mortality in the U.S., but little to weather-related morbidity. Morbidity takes a
          human and economic toll through injuries, lost work and diminished quality of life, but little is
          known about the nature and magnitude of that toll. This problem formulation constitutes the
          initial phase of an assessment of the consequences  of climate change on weather related
          morbidity.

          Air Quality: Previous studies have demonstrated that meteorology can have a significant influence
          on atmospheric concentrations of air pollutants, leading to concerns about the long-term efficacy
          of air pollution control efforts. To date, there are few modeling studies which directly address mis
          concern. By the end of FY 2002, the following initial question will be answered: How will global
          climate change affect local and regional weather patterns that influence air quality?

          Aquatic Ecosystems: To date, studies of the effects of global change on aquatic ecosystems have
          lacked a consistent framework for assessing interactions of multiple global change stressors and
          multiple ecosystem types within a watershed, and for assessing how those interactions may impact
          ecosystem services. By the end of 2002, a framework will be developed that can be applied to
          watersheds to evaluate how changes in climate, land use and UV radiation will affect aquatic
          ecosystem services.
Validation and Verification of Performance Measures

Performance Measure: Annual Greenhouse Gas Reductions

Performance Database: Baseline Data on Greenhouse Gas Emissions Climate Protection Division
Tracking System.

Data Source:   Baseline data  for carbon emissions related to energy use comes from the Energy
Information Agency (EIA).   Baseline  data for non-CO2, including nitrous oxide and other global
warming potential gases are maintained by EPA. EPA develops the methane emissions baselines and
projections using information  from partners and other sources.  EPA continues  to develop annual
inventories as well as update methodologies as new information becomes available. EPA's Voluntary
programs collect partner reports on facility specific improvements (e.g. space upgraded, kWh reduced.)
A carbon-conversion factor is  used to convert this information to estimated GHG reductions. EPA
maintains a "tracking system" for emissions reductions based on the reports submitted by partners.

QA/QC Procedures: EPA devotes considerable effort to obtaining the best possible information upon
which to evaluate emissions reductions from  voluntary programs. For example, EPA has a quality
assurance process in place to check the validity of partner reports.

Data Quality Review: Peer-reviewed carbon-conversion factors are used to ensure consistency with
generally accepted measures of greenhouse gas emissions.  The Administration regularly evaluates the
effectiveness of its  climate programs through interagency evaluations. The first such interagency
evaluation, chaired by the White House Council on Environmental  Quality, examined the status of the
Climate Change Action Plan.  The review included participants from  EPA, DOE, DOC, DOT, and
USDA. The results were published in the U.S. Climate Action Report-1997 as part of the United States

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Submission to the Framework Convention on Climate Change. A 1997 audit by EPA's Office of the
Inspector General concluded that the climate programs that were examined "used good management
practices" and "effectively estimated the impact their activities had on reducing risks to health and th
environment..." Work is currently being undertaken by an interagency task force preparing the Third
National Communication, a portion of which will describe policies and strategies (such as ENERGY
STAR and Partnership for a New Generation of Vehicles (PNGV) undertaken by the U.S. to reduce
greenhouse gas emissions, implementation status of the policies and strategies, and their actual and
projected benefits. One result of this interagency review process will be a refinement of future goals for
these policies and strategies which will be communicated to the Secretariat of the FCCC in 2001 as part
of the Third National Communication.

Data Limitations: These are indirect measures of GHG emissions-(i.e.,carbon conversion factors and
methods to convert material-specific reductions to GHG emissions reductions).  Voluntary nature of
programs may affect reporting. Further research will be necessary in order to fully understand the links
between greenhouse gas concentrations and specific environmental impacts, such as impacts on health,
ecosystems, crops, weather events, etc.

New/Improved Data  or Systems: The Administration regularly evaluates the effectiveness of its
climate programs through interagency evaluations.
Coordination with Other Agencies

       Voluntary climate protection programs government-wide stimulate the development and use of
renewable energy  technologies and energy efficient products that will help reduce greenhouse gas
emissions. The effort is led by EPA and the Department of Energy (DOE) with significant involvement
from USDA, Housing and Urban Development and National Institute of Standards and Technology.

       Agencies throughout the government make significant contributions to the climate protection
programs. For example, the DOE will pursue actions such as promoting the research, development, and
deployment of  advanced technologies  (for example, renewable energy sources).  The  Treasury
Department will administer proposed tax incentives for specific investments that will reduce emissions.
EPA is expanding its public information transportation choices campaign as a joint effort with the DOT.
EPA coordinates  with each of the above  mentioned  agencies to ensure that  our programs are
complimentary and in no way duplieative.

       This coordination is evident in current work being undertaken by an interagency task force,
including representatives from the Department of State, EPA, DOE, USDA, DOT, OMB, Department
of Commerce, USGCRP, NOAA, NASA, and Department of Defense, to prepare the Third National
Communication to the Secretariat as required under the Framework Convention on Climate Change
(FCCC). The FCCC was signed by President Bush and ratified by the United States Senate in 1992.
A portion of the Third National Communication will describe policies and measures (such as ENERGY
STAR and PNGV) undertaken by the U.S. to reduce greenhouse gas emissions, implementation status
of the policies and measures, and their actual and projected benefits.  One result of this  interagency
review process will be a refinement of future goals for these policies and measures which will be
communicated to the Secretariat of the FCCC in 2001.

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       Research

       EPA is  an active participant in the interagency U.S. Global Change Research Program
(USGCRP) and the ongoing National Assessments of "The Potential Consequences of Climate Change
and Variability on the United States." As part of these efforts, EPA coordinates research and assessment
activities with other USGCRP agencies to ensure that an integrated federal research and assessment
program is implemented, and that agencies' activities are complementary rather than duplicative. In
addition to the EPA's Global Change Research program, agencies participating in the USGCRP include:
the US  Departments of Agriculture, Commerce, Energy, Health and Human Services, Interior, the
National Aeronautic and Space Administration, the National Science Foundation, the Smithsonian
Institution, and the Tennessee Valley Authority.

Statutory Authorities

Clean Air Act, 42 U.S.C. 7401 et seq. - Sections 102,103,104, and 108

Clean Water Act, 33 U.S.C. 1251 et seq. - Section 104

Solid Waste Disposal Act, 42 U.S.C. 6901 et seq. - Section 8001

Pollution Prevention Act, 42 U.S.C. 13101 et seq. - Sections 6602, 6603,6604, and 6605

National Environmental Policy Act, 42 U.S.C. 4321 et seq. - Section 102

Global Climate Protection Act, 15 U.S.C. 2901 - Section 1103

Federal Technology Transfer Act, 15 U.S.C. - Section 3701a

Research

U.S. Global Change Research Program Act of 1990

United Nations Framework Convention on Climate Change

National Climate Program Act of 1997
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                             Environmental Protection Agency

             FY 2002 Annual Performance Plan and Congressional Justification

                Reduction of Global and Cross-Border Environmental Risks


Objective # 3: Reduce Stratospheric Ozone Depletion

       By 2005, ozone concentrations in the stratosphere will have stopped declining and slowly begun
the process of recovery. In addition, public education to promote behavior change will result in reduced
risk to human health from ultraviolet (UV) o verexposure, particularly among susceptible sub-populations
such as children.
                                    Resource Summary
                                    (Dollars in thousands)

Reduce Stratospheric Ozone Depletion.
Environmental Program & Management
Science & Technology
Total Workyears


FY 1999 FY 2000
Enacted Actual
$17,002.9 $17,581.1
$17,002.9 $17,554.0
$0.0 $27,1
36.5 31.6
Key Programs
(Dollars in thousands)
FY 1999 FY 2000
Enacted Enacted
FY 2001
Enacted
$17,249.9
$17,249.9
$0.0
33.3

FY2001
Enacted
FY2002
Request
$17,115.3
$17,115.3
$0.0
32.8

FY2002
Request
Multilateral Fund

Partnership with Industrial and Other Countries

EMPACT

Administrative Services
$11,362.0     $12,000.0     $10,975.8    $10,975.8

  $336.7       $361.1         $0.0         $0.0

  $671.4       $947.8         $0.0         $0.0
    $0.0
$288.5
$395.2
$456.5
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FY 2002 Request

       The stratospheric ozone layer protects life on earth from harmful ultraviolet (UV) radiation; a
depleted ozone layer allows more UV radiation to reach the earth. The increased levels of UV radiation
due to ozone depletion are linked to higher incidences of skin cancer, cataracts, and other illnesses.1
Today, one in five Americans develops skin cancer; over 25 percent of cataracts are caused by exposure
to ultraviolet radiation. EPA is helping to reduce the risks of skin cancer and cataracts by implementing
the provisions of the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol)
and the Clean Air Act Amendments of 1990 (the Act).
                                                      U.S. Significant Goals in
                                              Controlling Ozone-Depleting Substances
                                                         CFCs Q Methyl Bromide
                                                                            HCFCs
       Scientific evidence amassed over
the  past  25  years  has  shown  that
chlorofluorocarbons  (CFCs),  halons,
hydrofluorocarbons  (HCFCs),  methyl
bromide, and other halogenated chemicals
used around the world are destroying the
stratospheric ozone layer. The Act provides
for  a  phase-out   of   production  and
consumption of CFCs, HCFCs, and other
ozone-depleting chemicals, and  requires
controls on  various products containing
ozone-depleting substances (ODSs)*
       The United States and 174 other
countries  are  Parties  to  the  Montreal
Protocol as of January 1,2001. The United
States  has  repeatedly  affirmed   its
commitment to this international treaty and to demonstrating world leadership by phasing out domestic
production of ODSs, as well as helping other countries find suitable alternatives. As a signatory to the
Montreal Protocol, the United States has an obligation to domestically regulate and enforce its terms.
In accordance with this international treaty, and related Clean Air Act obligations, EPA implements and
enforces rules controlling the production, import and emission of ODSs, as well as rules requiring the
EPA to identify safer alternatives and promote their use to curtail ozone depletion.

       Because of the very long lifetimes of ODSs, even after program goals are met the U.S. population
will be exposed to higher levels of ultraviolet radiation than existed prior to the use and emission of
ODSs. The ozone layer is not expected to recover until the mid-21st century at the earliest, according
to current atmospheric research.  Recognizing this and the current sun-exposure practices of the
American public, EPA is encouraging behavioral changes with a goal of reducing UV-related health
risks.  The Agency is placing  special emphasis on education and outreach to children, a particularly
vulnerable population, through the Sun Wise School Program. Approximately 80 percent of lifetime
exposure to UV rays is obtained prior to age 18.
       1 World Meteorological Organization, Scientific Assessment of Ozone Depletion: 1998. February 1999.
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Program Goals and Objectives for 2002 and Beyond

•     Domestic and international phase-out of production and importation of numerous ODSs:
      •      Implementation of Class I chemical phase-out: chlorofluorocarbons (CFCs), halons,
             methyl  chloroform,   carbon   tetrachloride,  chlorobromomethane  and
             hydrobromofluorocarbons (HBFCs).
      •      Development of a marketable allowance allocation program to ensure a graduated
             phaseout of HCFCs, leading to full phase-out in 2030, in compliance with the Montreal
             Protocol.
      •      Implementation  of graduated phase-out of  methyl bromide, while allowing for
             quarantine, pre-shipment, emergency and critical uses — also employing marketable
             allowances,
      •      Expanded monitoring and interception of illegal imports of ODSs, through collaboration
             with the U.S. Customs Service.
      •      Implementation of essential use allowance program for production and importation of
             CFCs and other ODSs needed for critical applications, such as metered dose inhalers for
             asthma and other respiratory illnesses.

•     Increased recovery and recycling of ODSs and alternatives in the U.S. and abroad.

•     Regulatory review and outreach under the Significant New Alternatives Policy (SNAP) program
      to ensure that substitutes for ozone-depleting chemicals used across major industry and consumer
      sectors are safe for public health and the environment.

•     National implementation of the Sun Wise School Program, with the goal of reducing  the risk
      to children and their caregivers of health effects caused by overexposure to ultraviolet radiation.
      Through implementation of this national UV education program targeted to grades K-8, EPA
      expects to reach 8 million children and 17,000 schools by 2005.

•     Environmental data development and public outreach aimed at informing the public of risks of
      overexposure to UV radiation.

      Facilitation  of earlier  voluntary phase-out and refrigerant recycling of CFCs and HCFCs in
      developing countries.

      As noted above, current atmospheric modeling predicts a healing of the ozone layer by the
middle of the 21st century, assuming full global compliance with the Montreal Protocol, Because the
Protocol makes developing country compliance contingent on support from the Protocol's Multilateral
Fund, continued EPA support for the Montreal Protocol's Multilateral Fund is critical if we are to ensure
protection of the ozone layer.  Under the Montreal Protocol, the U.S. and other developed countries
contribute to the Multilateral Fund to support projects and activities to eliminate the developing country
production and use of ozone-depleting substances. To date, the Fund has supported over 3000 activities
in over 120 countries that when fully implemented, will annually prevent emissions of more than
 120,000 metric tons of ODSs.  In addition, the Fund has reached long term agreements to dismantle over
two-thirds of developing country CFC production capacity and over 90 percent of developing country
halon production capacity. Final closure of related facilities depends on continued funding.

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       In 2002, the Agency will transition to the next stage of assisting Russia in its goal of total
elimination of CFCs by assisting in the development of post phase-out monitoring. Activities would
be coordinated with the World Bank and donor countries and agencies in facilitating training and other
forms of technical exchanges. In addition, EPA would begin efforts in targeting countries for specific
enforcement capacity enhancement of customs officials to prevent the illegal entry of banned CFCs into
the United States.

       Pollution prevention is also an important element in meeting the objective goals. For example,
our National Emission Reduction Program requires recovery, and recycling or reclamation of ODSs,
primarily in the air-conditioning and  refrigeration sectors. The SNAP  program will review newly
developed alternatives to ODSs, and restrict those alternatives that, on an overall basis, are more harmful
to human health and the environment than other alternatives for the same application. The Stratospheric
Protection Program, with the help of other Federal agencies, will also continue to facilitate the transition
away from remaining uses of other ODSs, such as methyl bromide and  HCFCs.  Also working with
other Federal and international agencies, the Stratospheric Protection Program will continue its intensive
efforts to curb illegal imports of ODSs.

       Additionally, in 2002, EPA will build on the base program for the Sun Wise School Program
established in 2001. The overarching goal of the Sun Wise Program is to move the U.S. ozone protection
program into the area of risk reduction that offers the highest potential return:  direct education of
children and caregivers in how to protect themselves from overexposure  to UV radiation.

Program Accomplishments

•      In 2001, consistent with the Montreal Protocol and the Act,  EPA reduced methyl bromide
       production and import by 50 percent from the 1991 baseline.  Simultaneously, EPA worked
       closely with U.S. Department  of Agriculture (USDA) and industry to test and approve two
       registered alternatives to methyl bromide in 1999 and 2000.

•      Between 1995 and 2000, EPA, along with the Customs Service and  Department of Justice,
       intercepted over two million  pounds of illegal ODS imports, resulting in more than  90
       convictions of illegal importers. Stemming the flow of illegal imports into the U.S. not only
       ensures global reductions of ozone-depleting emissions, but also prevents the undercutting of the
       U.S. domestic market in reclaimed ODSs.

•      During 1999-2001, the Stratospheric Protection Program completed several major projects to
       prevent an increase in ozone-depleting emissions.  Examples include:
       •     Conducted a comprehensive evaluation, in collaboration with the National Aeronautics
             and Space Administration (NASA), the academic community, and industry, of potential
             health impacts of depletion resulting from high speed aircraft flying in the stratosphere.
       •     Developed and published, with extensive industry input and review, a comprehensive
             halon recovery and reclamation guide, which focuses on environmentally sound and
             efficient training and testing uses, de-commissioning, recovery, reclamation, and disposal
             of halons and containers of halons.
       •     Added refrigerators containing CFCs to the products banned from distribution within and
             imports into the U .S. The amendment to the existing product ban ensures environmental

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              protection from  releases of CFCs  and also avoids undermining U.S.  refrigerator
              manufacturers, all of whom have moved to alternatives.

       In 2000, EPA listed dozens of new alternatives to ODSs as acceptable for use in refrigeration anu
       air-conditioning, solvent cleaning, aerosols, insulating foams, fire protection, adhesives, coatings
       and inks. EPA also restricted the use of several proposed substitutes to prevent unacceptable
       risks to the environment and consumer and worker health and safety.

       Ensured the continued availability of CFCs  used for metered-dose inhalers relied upon by 14
       million patients with asthma and other chronic respiratory diseases.

       EP A' s 2001 contribution to the Multilateral Fund helped the Fund support cost-effective proj ects
       designed to  build capacity and eliminate  ODS production and consumption  in over  50
       developing countries.

       By  early 2001, the Sun Wise program had grown from 140 schools in 36 states  to 365
       participating schools in 45 states.
FY 2002 Change from FY 2001 Enacted

EPM

*      (-$276,400) This decrease reflects redirection to higher Agency priorities. The reduction wi.1*
       impact funding for the Stratospheric Protection Hotline. The Hotline currently receives 100-30t
       calls per day for information on policies and regulations and mails out requested documents, in
       particular, to air conditioning technicians. The Hotline will continue to operate, although it will
       field a reduced volume of calls.

*      (+$ 115,800) This increase reflects an increase in workforce costs.


Annual Performance Goals and Performance Measures

Restrict Domestic Consumption of Class II HCFCs

In 2002    Restrict domestic consumption of class II HCFCs below 15,240 ODP-weighted metric tonnes
          (ODP MTs) and restrict domestic exempted production and import of newly produced class I
          CFCs and batons below 60,000 ODP MTs.

In 2001    Restrict domestic consumption of class II HCFCs below 15,240 ODP-weighted metric tonnes
          (ODP MTs) and restrict domestic exempted production and import of newly produced class I
          CFCs and halons below 60,000 ODP MTs.

In 2000    End-of-year FY 2000 data will be available in mid 2001 to verify that domestic consumption of
          class II HCFCs  was restricted below  15,240 ODP-weighted metric tonnes (ODP MTs) and
          domestic exempted production and import of newly produced class I CFCs and halons was
          restricted below 60,000 ODP MTs.

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In 1999     Domestic consumption of class II HCFCs was restricted to below 208,400 MTs and domestic
           exempted production and import of newly produced class I CFCs and halons was restricted to
           below 130,000 MTs.

Performance Measures:                      FY 1999    FY2000    FY2001     FY2002
                                          Actuals      Actuals     Estimate     Request

Domestic Consumption of Class II HCFCs     <208,400 MTs 3 0-Jun-200l< 15,240   <15,240    OOP MTs

Domestic Exempted Production and Import of
Newly Produced Class I CFCs and Halons     
-------
In 2000    Provided assistance to 50 developing countries to facilitate emissions reductions and toward
          achieving the requirements of the Montreal Protocol.

In 1999    Through our contribution to the Multilateral Fund, assistance was provided to 50 countries
          working toward achieving the Montreal Protocol.

Performance Measures:                    FY1999   FY2000    FY2001    FY2002
                                      Actuals    Actuals     Estimate    Request

Assistance to Countries Working under Montreal
Protocol                                50        50         75         75        Countries

Baseline:   In an average year the Multilateral Fund, created through the Protocol, approves projects to assist
          over 50 developing countries in their efforts to comply with the phaseout of ODSs.
Verification and Validation of Performance Measures:

Performance Measure: Reductions in production and importation of ODSs.

Performance Database: Reported production, imports, exports, transformation, and allowance trades of
ODSs are recorded in the Stratospheric Ozone Tracking System, and analyzed quarterly.

Data Source: Baseline data provided by producers and importers, and allowance trade and quarterly
reports submitted by producers, importers and exporters.

QA/Q-C Procedures: The Stratospheric Protection Program has a system in place to verify reports with
Customs and other data. Additionally, the program has a three-point check of the transcription of report
data into the tracking system.

New/Improved Data or Systems: The Stratospheric Protection Program is exploring an improved system
whereby electronic reporting would be possible and an automatic crosswalk could be designed to
automatically copy HCFC data to the separate HCFC threshold monitoring database.
Performance Measure: Increase the number of children participating in the Sun Wise School Program
by 25 percent.

Performance Database: The SunWise School Program Tracking System tracks multiple variables about
participating schools, including student participation rates.

Data Source: Data on number of participating students is provided by their educator, e.g., school nurse
or classroom teacher.

OA/QC Procedures: Participating educators are asked to evaluate the program at the end of the school
year and provide information on the number of students who received SunWise teaching. These
numbers are cross-checked against the numbers in the Tracking System.
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New/Improved Data or Systems: N/A
Performance Measiire: Reduce the rate of sunburns in students participating in the Sun Wise School
Program by 5 percent.

Performance Database: All of the surveys are computer-scannable and these forms are entered into a
database.  Frequencies and descriptive statistics for all questions are printed out and reviewed by the
evaluation project director. Statistical tests are performed to compare the differences between children
at pretest and post-test by variables related to their knowledge, attitudes, and practices related to sun
protection.

Data Source: Data is obtained from surveys administered to a statistically significant random sampling
of students participating in the SunWise School Program to measure their knowledge, attitudes and
behaviors toward sun protection before receiving SunWise teaching and after.  All survey data are
anonymous.

QA/QC Procedures: Before all computerized survey forms are scanned, they are carefully checked for
any stray mark used by the student. If the stray marks are in pencil, they are fully erased. If children
make crayon marks, forms are ineligible for survey analysis. Teachers and nurses are notified in advance
of the survey completion to ask children to complete surveys with pen or pencil and to try as best as
possible to fill the box in entirely. Computer scannable forms are far better at eliminating or greatly
reducing error since they are not manually entered. Prior to reports or manuscript publication, all study
numbers are carefully checked by three investigators,  both in the original data report, and the  final
written report.
Coordination with Other Agencies

       In an effort to curb the illegal importation of ODSs, an interagency task force has been formed
consisting of EPA, the Department of Justice, the Customs Service, the Department of State, the
Department of Commerce, and the Internal Revenue Service.  The  venting of illegally imported
chemicals has the potential to prevent the U.S. from meeting the goals of the Montreal Protocol to
restore the ozone layer.

       EPA is working with the USD A to facilitate research and development of alternatives to methyl
bromide, and to identify and monitor emergency and critical uses of methyl bromide. EPA consults with
the USDA in  developing rulemakings for exempting certain methyl  bromide from production and
importation phase-out. EPA also consults with the Food and Drug  Administration (FDA) on the
potential for methyl bromide needs.

       EPA works with the Office of the United States Trade Representative in analyzing potential trade
implications in stratospheric protection regulations that affect imports and exports.

       EPA works closely with Centers for Disease Control and the National Weather Service on the
UV Index and the health messages that accompany the scientific data. Additionally, EPA is a member

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of the Federal Council on Skin Cancer Prevention which is dedicated to educating and protecting all
Federal employees from the risks of overexposure to UV radiation.

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

      The Agency coordinates with NASA and the National Oceanic and Atmospheric Administration
to monitor the state of the ozone layer.

      The Agency works  with NASA on assessing essential uses and other exemptions for critical
shuttle and rocket needs, as well as effects of direct emissions of high speed aircraft flying in the
stratosphere.

      EPA works very closely with the Department of State, and other Federal agencies as relevant to
the issues at hand, in international negotiations among Parties to the Protocol.
Statutory Authorities

Clean Air Act (CAA), Title V (42 U.S.C, 7661-7661f), and Title VI (42 U.S.C. 7671-7671q)

The Montreal Protocol on Substances that Deplete the Ozone Layer
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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                Reduction of Global and Cross-border Environmental Risk


Objective #4:  Protect Public Health and Ecosystems from PBTs and other Toxics

       By 2006, reduce the risks to ecosystems and human health, particularly in tribal and other subsistence-
based communities, from persistent, bioaccumulative toxicants (PBTs) and other selected toxins which circulate
in the environment on global and regional scales.
                                   Resource Summary
                                   (Dollars in thousands)

Protect Public Health and Ecosystems from
PBTs and other Toxics
Environmental Program & Management
FY1999
Enacted
$3,596.6
$3,596.6
FY 2000
Actual
$4,856.5
$4,856.5
FY 2001
Enacted
$4,636.1
$4,636.1
FY 2002
Request
$4,809.7
$4,809.7
       Total Workyears
           28.9


   Key Programs
(Dollars in thousands)
32.4
32,1
32.1
FY1999 FY2000 FY2001 FY2002
Enacted Enacted Enacted Request
Global Toxics
Partnership with Industrial
Administrative Services

and Other Countries

$315.3
$100.0
$0.0
$535.0
$356.4
$15.4
$0.0
$0.0
$16.1
$0.0
$0.0
$16.0
FY 2002 Request

       Many human health and environmental risks to the American public originate outside our
borders.  Many pollutants can travel easily across borders - via rivers, air and ocean currents, and
migrating wildlife.  Even in the remote Arctic, industrial chemicals such as polychlorinated biphenyls
(PCBs) have been found in the tissues of local wildlife. Further, differences in public health standards
can contribute to global pollution.  A chemical of particular concern to one country may not be

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controlled or regulated in the same way by another. External environmental influences are not unique
to the U.S. Harmonization of national standards can assist in reducing global pollution by increasing
the number of health and ecological effects any single country may be examining; it may also lower
barriers to trade and commerce as countries accept the validity of another's screening or other standards.
To reduce pollution in the U.S., EPA is committed to helping reduce pollution globally.

       EPA's activities under this objective give priority to selected chemicals and certain heavy metals
which can persist, bioaccumulate and are toxic (PBTs). PBT chemicals break down slowly in the
environment, and elemental metals never degrade. For this reason, PBTs, including persistent organic
pollutants, or POPs as they are known internationally, are very mobile, moving great distances along
wind and ocean currents, thereby posing serious risks to human health and the ecosystem in the U.S.
and world-wide. PBTs also enter the food chain, accumulating in the shellfish, fish, birds and animals
that are exposed directly or indirectly through their diets.

       EPA is working to reduce the potential risk from PBTs on several fronts: (1) reducing the
release and transboundary movement of PBTs; (2) reducing the levels of exposure to humans and
adverse effects to wildlife that may result from these PBTs; (3) assisting additional countries around
the world to monitor releases and also manage their use of PBTs; and (4) increasing confidence that
consistent PBT  obligations will be met.  For each of these efforts, the Agency targets the highest risk
or greatest concerns first.  Of the PBTs, PCBs, dioxins/furans, DDT and certain other pesticides,
mercury poses the greatest concern. In each negotiated agreement or offer of technical assistance, these
substances take priority. In addition, certain populations are especially vulnerable, and receive priority
consideration. Examples include coastal populations with diets heavy in fish or marine mammals which
may contain toxins and endangered  wildlife which consume and biomagnify PCBs, DDT or other
harmful PBTs.

       International agreements form the vehicle for many protective standards.  In 2002, EPA will
continue to play a key role in the Administration's efforts to successfully conclude a number of regional
and global negotiations to establish voluntary and legally binding obligations to control and more safely
produce, use, store and dispose of selected PBTs. In addition, the  Agency will continue ongoing
programs to build the capacity of other countries to reduce risks associated with PBTs, consistent with
the obligations of international agreements already in place or now under negotiation.

Binding International Agreements on Certain Persistent Toxics and Prior Informed Consent
       Recognizing  that  environmental
loadings of PBTs and the resultant health
and environmental risks will increase over
time  because of expanded  production,
trade, and use of these substances, in recent
years international attention has focused on
two groups of PBT substances: persistent
organic pollutants (POPs) such as PCBs,
dioxins and  DDT,  and  selected heavy
metals, most notably mercury.
 Under the Global POPs Agreement, twelve
     chemicals are initially targeted for
         elimination and/or control:
l.DDT
2. Aldrin
3. Dieldrin
4. Endrin
5. Chlordain
6. Heptachlor
7. Mirax
8. Toxaphene
9.  PCBs
10. Hexachlorobenzene
11. Furans
12. Dioxins
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       EPA has been involved in negotiating a series of legally-binding international agreements
concerning various PBT substances and international trade in severely restricted chemicals. The U.S.
and some forty other nations in late 1998 concluded and signed two legally-binding regional protocols
on POPs and on selected heavy metals (e.g., mercury) under the United Nations Economic Commission
for Europe's Convention on Long-Range Transboundary Air Pollution (LRTAP).  The LRTAP POPs
protocol in turn helped to establish the foundation for the ongoing negotiation (under the auspices of
the United Nations Environment Program, or UNEP) of a legally-binding global convention on POPs.
Negotiation of the UNEP POPs convention was concluded in December 2000 and it is expected to be
signed in May 2001.

       The UNEP POPs  agreement banned or restricted manufacture and/or use of 12 selected
chemicals. The  agreement also addresses export and import restrictions/controls, emission release
restrictions, micro-contaminant issues, waste management, and the selection of additional substances
for control. The long-term success of the agreement will depend in part on the development of emission
inventories and implementation of capacity building measures in developing countries around the
world. In FY 2002, provided the U.S. Senate certifies the POPs Treaty, EPA plans to begin assisting
developing countries in meeting their obligations under these agreements. EPA will focus on those
countries which are thought to be key sources of these substances.

       Even before the LRTAP and UNEP agreements become legally binding, the EPA and its U.S.
government partners are working to encourage and facilitate the compliance by developing countries
with what would become their obligations under these agreements.  Unless international controls are
put in place, environmental loadings of PBTs and the resultant health and environmental risks will
increase over time through expanded production, trade, and use of these substances. Many countries
often are unable to commit to controls of this type in the absence of technical assistance. The Agency
places considerable emphasis on capacity building projects in key developing countries seeking greater
compliance with international obligations and thus engages other countries in reducing global risks
posed by PBT substances.

       Among  the heavy  metals, mercury is especially noteworthy because it circulates in  the
environment at a global scale.  International cooperation is needed in reducing mercury production, use,
and release  if substantial  risk reductions to humans and their environment are to be achieved by
individual countries. In FY 2002, EPA will provide technical expertise and data to the global mercury
assessment which is being undertaken pursuant to a decision by the UNEP Governing Council in
February 2001.  EPA also will expand the geographic reach of its mercury monitoring effort (e.g., by
starting monitoring at Mauna Loa).

       A legally binding  global convention on Prior Informed Consent (PIC) - which facilitates
voluntary information exchange and import controls of banned or severely restricted chemicals among
countries - was signed in 1999.  In FY 2002 EPA will determine what steps will be needed to ensure
U.S. compliance.  EPA also will assist developing countries in complying with the provisions of the
PIC convention. This will result in more informed decision-making by these countries on how to best
manage the risks posed by trade in restricted chemicals.

Other Risk Reduction Measures for Persistent Toxics
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       EPA has promoted the phase-out of use of lead additives in gasoline at the international level
since the mid-1990s. As of 1999, the global use of lead in gasoline dropped below the target level
selected for EPA's 2005 strategic goal. In 2002 EPA will take additional steps to encourage more
countries to eliminate their use of lead in gasoline and thus reduce adverse health impacts associated
with lead exposure.

       EPA has for several years been actively promoting the phase-out of use of lead additives in
gasoline at the international level. As of 1999, the Agency has already seen the global use of lead in
gasoline drop below the target level selected for our 2005 strategic goal, and it is likely that EPA will
make additional progress in encouraging more countries to eliminate their use of lead in gasoline. This
will result in additional reductions in adverse health impacts associated with lead exposure.

       A new program started in 2000 will continue to target countries in Sub-Saharan Africa (SSA)
and specific sectors (i.e., refineries, mining companies, and stockpilers of agricultural chemicals) which
are major contributors to globally circulating chemical/toxic risks, focusing on pesticides, mercury and
lead. This program addresses the growing health and ecosystem risk from rapid urban and industrial
development in SSA, and supports U.S. foreign policy and Presidential commitments of engagement
with SSA through a community empowerment approach. In 2001, targeted countries and cities are
being given information which will assist in implementing environmental regulatory systems on a par
with U.S. and international standards.  Key activities include pesticide information exchange and
training, management of obsolete pesticide stockpiles, lead risk reduction, pollutant release and transfer
register development, and industrial sector environmental improvement.

       EPA will continue to  support countries in Sub-Saharan Africa (SSA) in addressing key toxic
risks, focusing initially on pesticides and lead in gasoline. This program addresses the growing health
and ecosystem risk from rapid urban and industrial development in SSA. In 2002, targeted countries
and cities will  be given information which will assist in implementing  environmental regulatory
systems on par with U.S. and international standards. Key activities include pesticide information
exchange and training, lead risk reduction, and industrial sector environmental improvement.

Harmonization of Test Guidelines

       Test guidelines are collections of methods for assessing hazard, toxicity, or other properties of
chemicals and chemical preparations, such as pesticides and industrial chemicals. Each test guideline
provides instructions on how a specific type of test could be adequately performed.  Many countries
develop their own set of test guidelines in line with their internal legislative requirements and priorities,
and differences in individual  test guidelines can adversely impact the trade between countries.

       Harmonizing test guidelines across countries offers significant benefits to industry, the public,
and the environment, including:

       •       reducing the burden on chemical companies and other industries, which otherwise must
              perform separate, sometimes only slightly different, repeated testing in order to satisfy
              the regulatory requirements of different jurisdictions both within the United States and
              internationally;

       •       reducing the need for animal testing;
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       •      expanding the universe of toxic chemicals for which needed testing information is
             available; and

       •      fostering efficiency in international information exchange and mutual international
             acceptance of chemical test data.

       To date, EPA has published nearly one hundred guidelines, a third of which have been
harmonized with OECD requirements. In 2002, the Agency will continue its involvement in the
process for harmonization  of additional test guidelines with the Organisation  for Economic Co-
operation and Development (OECD) and expects to contribute to the harmonization of five additional
test guidelines with the OECD.  The achievement of the test guideline subobjective will lead to
simplified and more uniform testing requirements, with guidelines that are acceptable to Federal
agencies and a wide array of countries, including our major trading partners.

Development of Pollutant Release and Transfer Registries CPRTRs)

       Pollutant Release and Transfer Registries (PRTRs) is the international  term  for annually-
reported multi-media emissions inventories, which at a minimum include information on the releases
(i.e., air, water, land, underground injection) and transfers (e.g., treatment) of pollutants from industrial
sources. The Toxic Release Inventory (TRI) is the United States'  version of a PRTR.  International
attention focused on PRTRs in 1992 when the Earth Summit (held in Rio de Janeiro) encouraged all
nations to establish these systems as an integral role in the sound management of chemicals.  In North
America, all three North American Free Trade Agreement (NAFTA) nations, Canada, the United States
and Mexico, have established emissions inventories. There are currently eight nations with PRTRs and
more that are either in the process of developing them, or that have expressed an interest in developing
such inventories. Fostering public awareness in other countries may help reduce pollution generated
in those countries,

       EPA remains involved at all  levels of the PRTR effort.  This involvement includes bilateral
discussions and active participation internationally.  EPA works closely with the OECD, the North
American Commission for Environmental Cooperation (NACEC), the United Nations Institute for
Training and Research (UNITAR), and the PRTR Coordination Workgroup, as  well as in bilateral
activities and in international fora. The U.S. EPA is chairing an OECD PRTR Release Estimation
Techniques task force to leverage resources by sharing information and expertise on guidance to
industry.  To foster public education around the world, EPA will utilize available resources from the
U.S.-Asia Environmental Partnership to provide financial or technical assistance  to help nations
develop PRTRs.

       By 2005, EPA expects that a majority of OECD countries will have established PRTRs or will
have PRTRs under development Besides being used for community purposes, as TRI is currently used
in this country, these registries will help monitor the progress countries make  in complying with
international agreements, such as the Montreal Protocol (ozone depleting chemicals), Basel (waste
transfer agreements), and the POPs Treaty.
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International Screenine Information Data Set f SIDSl
       The U.S.  is working with other OECD member countries to implement the International
Screening Information Data Set (SIDS) program, a voluntary international cooperative testing program
started in 1990. The program's focus is on developing base-level test information (including data on
basic chemistry, environmental fate, environmental effects and health effects) for international high
production volume chemicals.  Under OECD, high production volume chemicals are those that are
manufactured or imported in quantities of at least two million pounds. SIDS data will be used to screen
chemicals and to set priorities for further testing and/or assessment. The Agency will review testing
needs for 75 SIDS chemicals in 2002,
Bilateral Work with Canada and Mexico

       EPA  will  continue to work with  the
Canadian Government to develop strategies for
controlling  and  ultimately  eliminating   the
remaining  uses  of  two  priority  persistent
bioaccumulative    toxic   pesticides,
pentachlorophenol and  lindane,  and possibly
others yet to be selected. Both chemicals are on
tile  Great   Lakes  Binational Strategy.   In.
coordination with Mexico, EPA will continue to
promote the  gradual  phaseout  of DDT  and
chlordane, largely through a gradual increase in
the use of alternative products and  integrated pest
management practices.
          Technical Assistance to
           Developing Countries

EPA has been active in global efforts to manage
obsolete pesticides that are often stockpiled in
developing countries. EPA has been a leader in the
United Nations Food and Agriculture (FAO)
workgroup that is developing global strategies to
address the risks posed by obsolete pesticides. EPA
has also developed an international train-the-trainer
course "Pesticide Disposal in Developing Countries,"
based on the growing international problem and
demand for technical assistance.
FY 2002 Change from FY 2001 Enacted

EPM

"      (+$128,500) This increase reflects an increase in workforce costs.


Annual Performance Goals and Performance Measures

POPs Negotiation

In 2002     Initiate priority activities,  especially in developing countries, to  implement the global
           convention on persistent organic pollutants (POPs)

In 2001     Initiate priority activities, especially in  key developing countries, to implement the newly
           concluded global convention on Persistent Organic Pollutants (POPs).
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In 2000      Successfully concluded international negotiations on a global convention on Persistent Organic
            Pollutants (POPs) reaching agreement on POPs selection criteria, technical assistance, and risk
            management commitments on specified POPs.

In 1999      A negotiated agreement has been reached for USG polices and international agreement was
            reached in June 1999 on criteria for selecting Persistent Organic Pollutants to be covered in a
            new global POPs treaty, and No agreement has been reached yet on capacity building.

Performance Measures:                       FY 1999     FY2000    FY2001     FY2002
                                           Actuals      Actuals     Estimate     Request

Agreed USG policies on selection criteria for
Persistent Organic Pollutants                  yes                                            negotiations

Production of a final agreed convention text                 yes                                report

Agreement on selection criteria
and methodology                                        yes                                report

Number of POPs implementation activities
supported.                                                         3           3          activities

Baseline:    With the signing of the global POPs convention in May 2001 EPA will work on  domestic
            implementing legislation (e.g., aFIFRA amendment) and projects to support implementation by
            key developing countries (e.g., China). In FY2001 EPA worked with UNEP to identify regions
            (e.g., Sub-Saharan Africa, Central America, Southeast Asia) which would benefit from such
            support from EPA, and we have started projects on the basis of available funding. Whenever
            possible EPA  will support  projects which also promote compliance with the global Prior
            Informed  Consent (PIC)  regime and the international commitment to improve chemicals
            management capabilities,  as set out in the Bahia Declaration  from the Third Session of the
            Intergovernmental Forum on Chemical Safety in October 2000.

Lead Gasoline Phase-Out

In 2002      An additional two countries make national commitments to phase out the use of lead in gasoline.

In 2001      An additional two countries make national commitments to phase outthe use of lead in gasoline.

Performance Measures:                      FY 1999     FY2000    FY2001     FY2002
                                           Actuals      Actuals     Estimate     Request

Number of commitments to Pbphaseout                               2           2          countries

Global reduction in  Pb gasoline.                                       10          10         percent

Baseline:    Fourteen countries have phased out the use of Pb gasoline.  Twelve countries and the European
            Union are working on the phase out of Pb gasoline.

Eval. Domest. Suitab. of Internal Consens. Testing

In 2002      Evaluate the domestic suitability of international consensus testing decisions made in the OECD
            International Screening Information Data Set (SIDS) program and obtain needed testing as
            required.

In 2001      Evaluate the domestic suitability of international consensus testing decisions made in the OECD
            International Screening Information Data Set (SIDS)  program and obtain needed testing as
            required.
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In 2000    A change in the Organization for Economic Cooperation and Development (OECD) program
          and a meeting delay caused the Screening Information Data Set (SIDS) end of year results to fall
          short. Delays in the 12th OECD Addendum publication caused a shortfall  in guidelines
          harmonization.

In 1999    EPA is pursuing chemical testing through its domestic HPV Challenge program with industry
          and the OECD's collaborative Program on Screening Information Data Sets. EPA completed
          36 SIDS reviews in FY 1999. The OECD guidelines are still under review by other OECD
          member countries.

Performance Measures:                    FY 1999    FY2000    FY2001    FY2002
                                      Actuals     Actuals    Estimate    Request

Complete the review of testing needs for
chemicals processed through the OECD-
sponsored SIDS program                  36         28        50        75         Test Reviews

Complete OECD harmonization             0555          Test Guidelin

Baseline:   Guideline harmonization baseline is 82 test guidelines (health, ecosystem, exposure, physical
          and chemicals properties) and 32 in draft. Complete testing and data on 25 chemicals processed
          through the OECD sponsored SIDS program in 1998.
Verification and Validation of Performance Measures

Performance Measure: Conclusion and U.S. signature of POPs convention

Performance Database: Manual data collection

Data Source:  U.S. POPs working group

QA/QC Procedures: The target is U.S. signature on international agreement

Data Quality Review:  Not applicable

Data Limitations:  Not applicable

New/Improved Data Or Systems: Not applicable


Coordination with Other Agencies

       To conclude the international agreements on POPs, heavy metals and PIC substances, EPA must
continue to coordinate with other Federal agencies and external stakeholders, such as Congressional
staff, industry, and environmental groups, to convey the U.S. approach and solicit constructive
criticism.  EPA needs to ensure that the list of chemicals and the criteria and process for evaluating
future chemicals  for possible international controls are based on sound science.  To illustrate, the
Agency may typically coordinate with the Food and Drag Administration (FDA),  FDA's National
Toxicology Program, the Centers for  Disease Control/Agency for Toxic Substances and Disease
Registry (CDC/ATSDR), the National Institute of Environmental Health Sciences (NIEHS) and/or the
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Consumer Product  Safety  Commission (CPSC) on matters relating to OECD test guideline
harmonization.

       EPA's objective is to promote improved health and environmental protection, both domestically
and worldwide. The success of this objective is dependent on successful coordination  not only with
other countries, but with various international organizations such as the Intergovernmental Forum on
Chemical Safety (ICFS), the North American Commission on Environmental Cooperation (NACEC),
the Organization for Economic Cooperation  and  Development's  (OECD),  and  the  CODEX
Alimentarius Commission. The North American Free Trade Agreement and cooperation with Canada
and Mexico play an integral part in the harmonization of data requirements.

       The Agency's goal to develop common or compatible international approaches to pesticide
review, registration and standard-setting extends to our international partnerships. The partnerships
may be grouped into 3 broad categories: (1) policy, (2) programmatic, and (3) capacity building. The
Agency, for example, worked closely with other member countries of the OECD to establish a pesticide
forum to bring government pesticide regulators together to address common problems and achieve
greater harmonization of policies and procedures. The OECD Pesticide Forum works  on five major
areas:  re-registration, data requirements, risk reduction, test guidelines and hazard assessment. The
OECD plans to include establishing internationally harmonized labeling for pesticides.

       EPA continues to participate actively in the implementation of the Food and Agriculture
Organizations (AO-UNEP) Prior Informed Consent (PIC) agreement, which promotes safe management
of chemicals in international trade. PIC provides for notification from countries to the U. N.  about
pesticides and chemicals that have either been banned or severely restricted for health and/or safety
reasons. The Agency is  also continuing to work with the U.N. Food and Agriculture Organization
(FAO) to promote safe management of chemicals in international trade. The Agency also has worked
with the Codex Alimentarius Commission to improve the scientific basis and timeliness of Codex
decisions, and boost public participation in the decision making processes. The Agency also will
continue to work with the North American Commission for Environmental Cooperation on the
development and implementation of regional action plans to address such PBTs as mercury.

       EPA initiated work in 1999 on its Persistent Bioaccumulative Toxics Initiative (PBTI), which
aims to support a variety of domestic and international efforts (noted above). The goal of these efforts
is to reduce the risks posed by persistent toxic substances. Through the PBTI, EPA has worked closely
with its domestic partners, including state and local governments, as well as industry, environmental
and tribal organizations, plus international counterparts, to promote the obj ectives of the Initiative. This
work has closely paralleled many efforts already underway to conclude and promote the implementation
of international agreements on POPs and PIC.

       At the EPA regional level, EPA also worked with the NACEC to deal with chemical pollutants
of concern to Canada, Mexico,  and the United States. The commission approved regional action plans
to reduce the use of DDT and chlordane throughout North America.
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Statutory Authorities

Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)

Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) sections 3,4,5,6,10,11,18,20,23,24,25,30
and 31 (7 U.S.C. 136a, 126a-l, 126c, 136d, 136h, 136i, 136p, 136r, 136u, 136v, 136w, 136w-5 and
136w-6)

Emergency Planning and Community Right-to-Know Act (EPCRA) section 313 (42 U.S.C. 11023)

Toxic Substances Control Act (TSCA) sections 4,5,6,12, and 13 (15 U.S.C. 2603,2604,2605,2611,
2612)

Clean Water Act (CWA) (33 U.S.C. 1251-1387)]

Clean Air Act (CAA)

Federal Food, Drug and Cosmetic Act (FFDCA).

Resource Conservation and Recovery Act (RCRA)

North American Agreement on Environmental Cooperation (NAAEC)

1996 Habitat Agenda, paragraph 43bb

U.S./Canada Agreements on Arctic Cooperation

1989 US/USSR Agreement on Pollution

1991 U.S./Canada Air Quality Agreement

1978 U.S./Canada Great Lakes Water Quality Agreement

1909 Boundary Waters Agreement

World Trade  Organization Agreements

North American Free Trade Agreement
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                              Environmental Protection Agency

             FY 2002 Annual Performance Plan and Congressional Justification

                 Reduction of Global and Cross-border Environmental Risk


Objective # 5:  Increase Domestic and International Use of Cleaner and More Cost-Effective Technologies.

       Through 2005, integrate environmental protection with international trade and investment and increase
the application of cleaner and more cost-effective environmental practices and technologies in the United States
and abroad to ensure that a clean environment and a strong economy go hand-in-hand.
                                     Resource Summary
                                     (Dollars in thousands)


                                          FY1999      FY2000      FY2Q01       FY 2002
                                          Enacted       Actual       Enacted       Request
Increase Domestic and International Use of
Cleaner and More Cost-Effective
Technologies.

    Environmental Program & Management
$9,370.0     $11,809.2
         $11,161.3     $11,268.1
$9,370.0     $11,809.2      $11,161.3      $11,268.1
       Total Workyears
    53.5
55.9
   56.0
   52.9
                                        Key Programs
                                     (Dollars in thousands)

Environment and Trade
Partnership with Industrial and Other Countries
Commission for Environmental Cooperation - CEC
International Safe Drinking Water
Regional and Global Environmental Policy
FY1999
Enacted
$389.0
$4,638.0
$3,084.0
$684.0
$0.0
FY 2000
Enacted
$518.0
$5,063.0
$3,222.5
$793.0
$0.0
FY 2001
Enacted
$1,614.7
$0.0
$3,269.0
$384.4
$1,327.8
FY2002
Request
$1,672.5
$0.0
$3,403.6
$301.8
$1,452.8
Development

Technical Cooperation with Industrial and
Developing Countries

Administrative Services
      $0.0
      $0.0
  $0.0
 $48.0
$3,400.2
  $41.5
$3,332.4
  $34.0
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FY 2002 Request

       EPA's activities under this objective will: (1) protect human health and the environment on
global, regional, and national levels by enhancing management capabilities in other countries; (2)
reduce the cost of environmental protection in the U.S. through international sharing of environmental
information and of innovative practices; (3) promote environmentally sound trade worldwide through
the implementation of the North American Free Trade Agreement's environmental agreements, and
through participation in the development of U.S. trade policy; (4) promote the dissemination of proven
and cost-effective environmental technologies and services; and (5) advance U.S,  foreign policy,
economic, national security, humanitarian, and other interests abroad.

       Specific programs and activities which support the objective during FY 2002 include:

Trade and the Environment

       EPA's formal involvement in U.S. trade policy development began in the early 1990's with the
negotiation of the North American Free Trade Agreement (NAFTA) (1991-1993).  For the first tune,
the United States, Mexico and Canada placed priority attention on environmental issues caused by trade
liberalization. Increasingly trade rules focus on "non-tariff trade barriers," which include, safety and
environmental  laws that restrict market access, such as regulation of products (e.g., chemicals,
pesticides, vehicles) that are sold or traded in  commerce. In addition, to promote free trade, some
agreements now include provisions that limit the types of measures governments may apply to foreign
investors, including measures to address health and environmental issues. As measures of these types
are increasing, EPA must now address the issue of consistency  between implementation of domestic
statutes and international obligations both during the negotiation and implementation of trade
agreements.  In addition, the United States assesses reasonably foreseeable environmental impacts of
new trade agreements (both positive and negative). During FY 2002, EPA will work with other parts
of the U.S. government to conduct quantitative and qualitative environmental reviews of new trade
agreements.

North American Commission for Environmental Cooperation

The North American Commission for Environmental Cooperation (NACEC) was established in 1993
under the North American Agreement on Environmental Cooperation (NAAEC), a supplemental
agreement to the North American Free Trade Agreement (NAFTA). The NACEC consists of a Council,
a Secretariat, and a Joint Public Advisory Committee. Executive Order 12915 designates the EPA
Administrator as the United States representative on the Council.

The objectives of the NAAEC include: fostering the protection  and improvement of the environment
in North America for the well-being of present  and future  generations; promoting  sustainable
development based on cooperation and mutually supportive environmental and economic policies;
supporting the environmental goals and  objectives of the North American Free Trade Agreement
(NAFTA); enhancing compliance with, and enforcement of, environmental laws and regulations; and,
promoting transparency and public participation in the development of environmental laws, regulations
and policies. To  achieve these objectives,  the Council approves an annual program plan for the

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NACEC that includes projects in the areas of Environment, Economy and Trade; Conservation of
Biodiversity; Pollutants and Health; and Law and Policy. The Council also meets regularly to review
the work  of the NACEC and reach key  decisions on a wide range  of environmental matters
encompassed by the NAAEC.

During 2002, EPA will lead U.S. efforts in the implementation of the  NAAEC and the NACEC
program plan by coordinating U.S. involvement in the development of a strategic plan for biodiversity
conservation, as well as a factual record related to effective environmental enforcement.  One of the
many NAAEC objectives includes promoting transparency and public participation in the development
of environmental laws, regulations, and policies. To this end, EPA will promote public participation
and outreach efforts within the NACEC through the development of various information dissemination
tools (websites, maps, reports, etc.) related to the following topics: emerging environmental trends;
species of common conservation concern; marine and coastal ecological regions; and, pollutant release
and transfer registers for industrial contaminants.

International Safe Drinking Water

       The international safe drinking water initiative will focus  on applying cleaner and more
cost-effective environmental practices and technologies in order to improve drinking water quality in
partner countries. Ongoing projects in Central America and Africa will be used as models to continue
promoting water quality improvement throughout these regions with potential expansion into Asia.
With the number of medium-sized cities (100,000 to 1 million inhabitants) and large cities (greater than
1 million inhabitants) expected to rise dramatically over the next 20 years, these projects will help
alleviate the enormous stress on an already compromised water and wastewater infrastructure in urban
and peri-urban areas.

       EPA will continue its projects which strengthen national drinking water programs, improve
urban water utility management* protect drinking water sources and enhance water quality surveillance
and treatment.  In Latin America, EPA will work with partners such as the Pan American Health
Organization's technical center-CEPIS - to strengthen their abilities to improve water quality in the
region. EPA completed the planning phase of the Africa projects during FY 2001. Implementation will
occur during FY 2002, with projects focused on nations in the southern and eastern parts of the
continent.  Raising awareness of the cost-effectiveness of protecting safe water resources (versus
treatment of contaminated sources) will be an important component of each project in each region.
EPA will work with in-country partners to emphasize the health impacts and societal costs, such as
infant mortality or lost work force productivity, which can result from unsafe drinking water.

Transfer of Innovative Practicesand Environmental Information

       EPA will work directly with other countries and through multilateral organizations to share
innovative practices for environmental management and to disseminate environmental information.
These programs build the capacity of developing countries to improve quality of life for their citizens,
while also providing reciprocal benefits to the U.S.  These benefits include: the introduction of new
techniques for managing urban environments, reduced environmental damage to the global commons,
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reduced costs and effort through data sharing, an increased demand for U.S. environmental technologies
and services, and the implementation of more transparent enforcement and permitting regimes.

       Beginning in FY 2002, EPA will support a comparative research study of risk-based decision-
making in Canada, the UK, the Netherlands, and Germany, using actual projects as the basis for
analysis.  The Agency will disseminate findings from the study to U.S. communities addressing
brownfields issues.   This  effort will articulate the unique and  common  elements of risk-based
approaches to  site assessment, site restoration, and landscape design.  It will also explore public
participation in the redevelopment of contaminated lands.

       EPA will also support a comparative study of the best practices for land use and urban
watershed management.  This study will use lessons from projects in other OECD countries to help
shape sustainable practices in U.S. cities. A separate project will support comparative research on the
best practices for green building design and development among cities in OECD member nations. The
objective of this effort is to share with U.S. cities information on the cost and design of green buildings,
standards development, and associated economic incentives.

       With over 30  years of experience, EPA stands as one of the world's foremost resources for
environmental data and technical information. The Agency's international environmental information
programs work to transfer EPA's information resources to key developing countries, assist these
countries in building sound data collection, analysis, and dissemination capabilities, and identify
proj ects where the U. S. and its partner countries can work together in filling gaps in environmental data
collections.

       In priority countries,  EPA will help build  capacity to collect, analyze  and disseminate
environmental data. Sound data collection  and analysis facilitate improved environmental legislation
and enforcement regimes, and allow for the establishment of environmental baselines. These baselines,
in turn, can help developing countries target resources for environmental protection more effectively.
Among other FY 2002 projects, EPA will assist major Asian cities to improve collection and analysis
of data on air pollution from mobile sources. EPA will use a variety of tools - training courses, transfer
of models, direct technical  assistance- to aid target municipalities in instituting better mobile source
monitoring systems.

Legal and Regulatory Capacity Building

       By FY 2002, four priority countries in Asia - India, the Philippines, Thailand, and Vietnam -
plan to implement new environmental laws and regulations Or significantly revise existing laws and
regulations. Through in-country assistance to EPA counterpart organizations, training, and transfer of
information, EPA will assist  two or more countries or regions in developing and implementing
improved laws and regulations. Projects in support of this effort will likely focus on transferring U.S.
experience in the development of sound regulatory regimes and associated policies on permitting and
penalty assessment. The Agency will also work with priority countries and regions to increase public
participation in the promulgation of environmental regulations. Public participation can encourage

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greater transparency in enforcement and reporting. EPA will also work with key partners to develop
public awareness campaigns which facilitate the implementation of new regulations.

       As part of a cooperative effort with AID, the Agency will also work to improve the regulatory
framework in Central America.
FY 2002 Change from FY 2001 Enacted

EPM

       (+$61,600.00, -2.9 FTE)
       Dollar increase reflects personnel costs and benefits. The FTE reduction is a result of reduced
       work in the Partnerships with Industrialized Countries activity.


Annual Performance Goals and Performance Measures

Enhance Institutional Capabilities

In 2002     Enhance environmental management and institutional capabilities in priority countries.

In 2001     Enhance environmental management and institutional capabilities in priority countries.

In 2000     Delivered 12  international framing  modules; implemented 6 tech assistance/technology
           dissemination projects; implemented 5 cooperative  policy development projects;  and
           disseminated information products on US environmental technologies and techniques to 3100
           foreign customers.

In 1999     3 of the 4 program areas for enhancing global environmental management were met.
Performance Measures:
Number of training modules delivered
FY 1999
Actuals

16
FY 2000
Actuals

12
FY2001
Estimate
FY2002
Request
Number of tech assistance or tech dissemination
projects carried-out                        6

Number of cooperative policy developement
projects implemented

Number of info products disseminated to foreign
customers                                2500

Number of capacity buliding activities scheduled
for initiation in FY 2000 and beyond         2

Number of countries or localities (3) that have
adopted new or strengthened environmental
           3100
                      modules


                      projects


                      projects


                      products


                      report
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laws and policies

Number of organizations (3) that have increased
environmental planning, analysis, and enforcement
capabilities

Number of organizations (3) that have increased
capabilities to generate and analyze environmental
data and other information

Number of organizations (3) that have increased
public outreach and participation
Number of targeted sectors (3) that have adopted
cleaner production practices

Number of cities (3) that have reduced mobile-
source based ambient air pollution
concentrations

Assist in the development or implementation of
improved environmental laws or regulations in two
(2) priority countries.

Increase the transfer of environmental best
practices among the U.S. and its partner countries
and build the capacity of developing countries to
collect, analyze, or disseminate environmental
data.
countries
organizations
organizations


organizations"

industry sector



cities



countries
countries
Baseline:   EPA has  assisted several  entities within  developing countries to implement improved
           environmental laws, employ best enviromental practices, adopt cleaner production practices
           and reduce ambient air pollution concentrations.
Verification and Validation of Performance Measures

Validating measurements under international capacity-building programs presents several challenges.
Technical assistance projects, for instance, typically target developing countries, which often do not
have sound data collection and analysis systems in place. Several of the Agency's activities under
Goal 6, Objective 5 attempt to improve this data gathering and analysis process. Non-technical
projects frequently must rely on more subjective measures of change.  Assistance in regulatory
reform, for example, relies on  the opinions  of project staff and/or reviews  by third-party
organizations, including other U.S. government organizations, in judging the long-term efficacy of
the assistance provided. Data verification and validation for each of the key measures under
Objective 5 are discussed below.
Assist in the development or implementation of improved environmental laws or regulations
in two (2) priority countries.
                                             VI-79

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•      Performance Database: None-Manual Collection

*      Data Source: Project Specific

»      QA/QC Procedures:  Verification does not involve any pollutant database analysis, but will
       require objective assessment of tasks completed, compliance with regulatory development
       and mutual assessment of projects goals and objectives.

       EPA works with developing countries to improve environmental laws and regulations.
       Tracking development and implementation of legislation presents few challenges since EPA
       project staff maintain close contact with their counterparts and since any changes become
       part of a public record. Assessing the quality of the new or revised laws/regulations, the
       level of public participation and support for stronger regulations, and the long-term social
       impacts of legislation is more subjective.  Aside from feedback from Agency project staff,
       EPA relies, in part, on feedback from its counterparts in the target countries and regions,
       from NGOs and other third parties in gauging the efficacy of its work on international legal
       and regulatory capacity-building. Because EPA works to establish long-term relationships
       with priority countries, the Agency is often able to assess environmental improvement in
       these countries and regions for a number of years following legal assistance efforts.

Increase the transfer of environmental best practices among the U.S. and its partner countries
and build the capacity of developing countries to collect, analyze or disseminate environmental
data.

*      Performance Database: None-Manual Collection

•      Data Source: Project Specific

•      QA/QC Procedures:  Verification does not involve any pollutant database analysis, but will
       require objective assessment of tasks completed, compliance with regulatory development
       and mutual assessment of projects goals and objectives.  EPA's international urban projects,
       data and information for each project's outputs and goals will emanate, in writing, from the
       grantee after consulting bi-monthly with local, regional, and national urban environmental
       practitioners. This data and information will be forwarded to and verified by the EPA project
       officer.

•      New/Improved Data or Systems: Activities  in support of this project may result in new or
       improved data collection  systems in developing countries.

Performance Measure: Increase the capacity of programs in Africa and Latin America to
address safe drinking water quality issues.

•      Performance Database: None-Manual  Collection


                                        VI-80

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       Data Source: Project Specific

       QA/QC Procedures: Verification does not involve any pollutant database analysis, but will
       require objective assessment of tasks completed, compliance with regulatory development
       and, and mutual assessment of projects goals and objectives. EPA is currently tracking
       output data for the International Safe Drinking Water Program (ISDWP) in Central America
       with plans to begin looking at measuring the longer term outcomes.  On a quarterly basis,
       EPA collects data through EPA teams, in-country partners and cooperators on outputs such
       as number of people trained, number of pilot projects completed and number of workshops
       held. This information is validated through constant contact with the aforementioned groups
       and through on-site visits by EPA program managers. The information is also shared with
       donors, specifically USAID, through quarterly reports. The  outcome measures of improved
       capacity of in-country  partners and stakeholders  to ensure safe drinking water  for the
       communities are
       under development and will provide indicators of the longer term sustainability potential of
       the program.

       EPA's ISDWP in Africa is currently in the start-up phase and the data collection process is
       under development.
Coordination with Other Agencies

       EPA's environmental mandate and expertise make it uniquely qualified to represent the
nation's environmental interests aboard. While the Department of State (DOS) is responsible for the
conduct of overall U.S. foreign policy, implementation is often the responsibility of other agencies
with specific technical expertise and resources. Relations between EPA and DOS cut across several
offices and/or bureaus in both organizations. EPA and the many components of the Department of
Commerce work together closely on a range of different issues, including many science and
technology issues. Within EPA, the Office of International Activities (OIA) is responsible in
implementing EPA activities under the Export Enhancement Act of 1992. The Act mandated EPA's
participation  in the Environmental Trade Working Group  of the Trade Promotion Coordinating
Committee, an interagency working group chaired by the Secretary of Commerce to coordinate the
government's overall environmental trade promotion activities.

       OIA also serves as the primary point-of-contact and liaison with the U.S. Agency for
International Development (USAID). Specially drawing on expertise from throughout EPA, OIA
administers a number of interagency agreements for environmental assistance.

       EPA works extensively with the Office of the U.S. Trade Representative (USTR), particularly
its Office of Environmental and Natural Resources, to ensure that U.S. tirade polices are mutually
supportive. For example, through the Agency's participation in the negotiation of both the North
American Free Trade Agreement and the World Trade Organization, EPA has worked with USTR
to ensure that U.S. obligations under international trade agreements do not hamper the ability of

                                        VI-81

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Federal and state governments to maintain high levels of domestic environmental protection.  The
two agencies also work together to ensure that EPA's rules, regulations and programs are consistent
with U.S. obligations under international trade agreements.

      Finally, EPA works closely with a number of other Federal agencies with environmental,
health, or safety mandates. These include the Department of Labor, Department of Transportation,
Department of Agriculture, Department of Interior, Department of Health and Human Services, and
the Food and Drug Administration.
Statutory Authorities

EPCRA section 313 (42 U.S.C. 11023)

PPA(42U.S.C. 13101-13109)

World Trade Organization Agreements

North American Free Trade Agreement

North American Agreement on Environmental Cooperation

US-Canada Apeements

The Boundary Waters Treaty of 1909

1987 Great Lakes Water Quality Agreement

1997 Canada-U.S. Great Lakes Binational Toxics Strategy
                                        VI-82

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Goal 7: Environmental Information

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Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 7: Quality Environmental Information	  VII-1
       Increase Availability of Quality Health and Environmental Information  .....		VII-9
       Provide Access to Tools for Using Environmental Information	 VH-24
       Improve Agency Information Infrastructure and Security	VII-39

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                             Environmental Protection Agency

               FY 2002 Annual Performance Plan and Congressional Justification

                            Quality Environmental Information

Strategic Goal: The public and decision makers at all levels will have access to information about
environmental conditions and human health to inform decision making and help assess the general
environmental health of communities. The public will also have access to educational services and
information services and  tools that provide for  the reliable and secure  exchange of quality
environmental information.
                                    Resource Summary
                                    (Dollars in thousands)
                                           FY 1999
                                           Enacted
             FY2000
             Actual
           FY2001
           Enacted
           FY2002
           Request
Goal 07 Quality Environmental Information

Obj. 01  Increase Availability of Quality Health
        and Environmental Information.

Obj. 02  Provide Access to Tools for Using
        Environmental Information.

Obj. 03  Improve Agency Information
        Infrastructure and Security.

                 Total Wbrkyears
$123,206.7    $156,934.2     $178,253.4   $189,128.1

 $99,791.9      $86,211.5    •  $95,812.3   $117,378.7
 $23,351.0
     $63.8
     729.2
$54,857.8
$15,864.9
   775.0
$63,302.4    $54,837.6
$19,138.7    $16,911.8
    890.6
854.3
*For proper comparison with the FY 2002 request, the historic data has been converted to be consistent with the new 2000 Strategic Plan structure. Goal and Objective resources
for FY 1999, FY 2000, and FY 2001 may therefore differ from the resources reported in the FY 2001 Annual Plan and Budget and the FY 2000 Annual Report.
Background and Context

       Information about the environment underlies all environmental management decisions.
The availability of and access to information as well as the analytical tools needed to understand
it are essential for measuring environmental improvements and assessing progress. The more
accurate, complete, timely, and accessible data are, the easier it will be to make decisions.  This
goal recognizes the importance of working with the public, the Agency's partners, and
stakeholders to collect, manage, and make available the information needed at the national,
regional, state, local, and tribal levels to make sound decisions leading to a cleaner, healthier
environment.
                                            VII-1

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Means and Strategy

       The purpose of this goal is to empower the American public with information about the
environment.  Accurate and accessible environmental information better enables the public to
understand conditions and make informed decisions about protecting the health and the environment
of local communities.  It can lead to creative and sustainable solutions to environmental problems
and opportunities for pollution prevention. Environmental information of known and documented
quality is crucial to sound decision making and to establishing public trust and confidence in those
decisions. EPA and its partners will focus on six areas to accomplish this goal.

       First, EPA will continue to increase the availability of health and environmental information
by providing the public electronic and non-electronic access to accurate and reliable environmental
data.  This data will include information collected by EPA, our partners, and stakeholders.

       Second, EPA will focus on information integration. EPA and the states are working together
to develop a comprehensive and integrated information exchange network to facilitate information
sharing among EPA, the  states, other federal agencies, tribes, localities,  and the regulated
community. This will include standardized data formats and definitions, a centralized approached
to receiving and distributing information, and improved access to timely and reliable environmental
information.  Information Integration will improve environmental decision making, improve data
quality and accuracy, ensure security of sensitive data, avoid data redundancy, and reduce the burden
on those who provide and those who access information.

       Third, the Agency  will solicit customer feedback to systematically improve information
usability, clarity, accuracy, reliability, and scientific soundness. EPA will develop and implement
necessary data standards  and  associated registries and ensure that data  quality is known  and
appropriate for intended uses.  EPA will also evaluate the appropriateness of data used in its
decision-making processes. The Agency is committed to developing analytical and other tools to
help users interpret and use environmental data and improve environmental decision making.

       Fourth, EPA will provide the means for using and understanding environmental information.
Environmental  data is most meaningful when examined from a holistic perspective, that is, when
users are able to examine all of the data about a particular location at once.  Users must also have
access to information  that  helps them understand the limitations of data and the content or context
in which it is most useful.

       Fifth., EPA is working to streamline information collection, making it more efficient and cost-
effective by  reducing unnecessary  costs and burden to EPA,  states, tribes and the  regulated
community.  The Agency will critically examine the information reporting burdens we have placed
on our partners and on the regulated community and ensure that information collection addresses
specific needs.
                                          VII-2

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       Finally, the Agency believes that strengthening and securing its information infrastructure
is fundamental to increasing the availability of environmental information.  EPA must remain
vigilant in maintaining a strong and secure information infrastructure that directly supports the
mission of the Agency.

       By focusing on these areas, EPA believes it will keep pace with the rapid advances in
information  technology and meet the growing  demand  for  reliable, quality  environmental
information.

       Also of great importance is a communications strategy that will serve the Agency and the
public as they seek to avail themselves of environmental information.  Effectively managing the
process by which the public is educated and informed regarding the Agency's resources is pivotal
to accomplishing the mission of the Agency.  To this end, the Agency will expand its two-way
communications with the public, on a continuous loop of public participation and interaction, for
improved information exchange and effective information dissemination. EPA, through its public
and congressional liaison functions, F AC A functions, media relations, print and web content review
and oversight responsibilities, and environmental education responsibilities, will  implement
strategies designed to inform and educate all segments of the public about Agency initiatives,
policies, regulations, services and environmental  information resources, and will develop and
monitor feedback mechanisms to learn from them.

       Research

       The research program supports this goal through the Integrated Risk Information System
(IRIS) and the Risk Assessment Forum (RAF). IRIS is an EPA database of Agency consensus health
information on environmental contaminants. The database is used extensively by EPA, the states,
and the general public where consistent, reliable toxicity information is needed for credible risk
assessments.  In FY 2002, the Agency will develop new and  updated Agency consensus human
health assessments of environmental substances of high priority to EPA and make them publicly
available on IRIS. The Risk Assessment Forum promotes Agency-wide consensus on difficult and
controversial risk assessment issues and ensures that this consensus is incorporated into appropriate
Agency risk assessment guidance.  In FY 2002, the RAF will develop technical papers to provide
initial guidance on difficult cumulative risk assessment issues. These efforts provide data/guidance
to improve the scientific basis for environmental decision making.
Strategic Objectives and FY 2002 Annual Performance Goals

Objective 01: Increase Availability of Quality Health and Environmental Information

«      The Central Data Exchange, a key component of the environmental information exchange
       network, will become fully operational and 15 states will be using it to send data to EPA
       thereby improving data consistency with participating states.
                                         VII-3

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•      100% of the publicly available facility data from EPA's national systems accessible on the
       EPA Website will be part of the Integrated Error Correction Process, reducing data error.

•      EPA will reduce reporting burden, improve data quality, lower program costs, and speed data
       publication by increasing the amount of TRI electronic reporting from 70 to 85 percent.

*      Improve public access to compliance  and enforcement documents and data through
       multimedia data integration proj ects and other studies, analyses and communication/outreach
       activities.

Objective 02:  Provide Access to Tools for Using Environmental Information

       Ensure that EPA's policies, programs and activities address disproportionately exposed and
       under-represented population issues so that no  segment suffers disproportionately from
       adverse health and environmental effects.

Objective 03:  Improve Agency Information Infrastructure and Security

•      Complete risk assessments on the Agency's critical infrastructure systems, critical financial
       systems, and mission critical environmental systems.
Highlights

       The unprecedented changes in information technology, combined with an increasing public
demand for information, are fundamentally altering the way the Agency and the states collect,
manage, analyze, use, secure, and provide access to environmental information. EPA is working
with the states and tribes to strengthen our information quality, leverage information maintained by
other government organizations, and develop new tools that provide the public with simultaneous
access to multiple  data sets, allowing users to understand  local,  state, regional, and national
environmental conditions.

       Information Integration will be key to achieving our objectives.  Information integration
builds on a strengthened partnership between EPA and the states. It uses an Internet-based, multi-
media approach to environmental information exchange that is standards-based, highly connected,
dynamic, flexible, and secure. Integration, with the broad-based voluntary participation of the states
and EPA programs, will provide a wide range of shared environmental information to the states,
tribes, localities, regulated community, EPA, and the public.

       In 2002, EPA will launch a new grant program that will provide states and tribes assistance
to develop the National Environmental Information Exchange Network (NEIEN).  This new grant
program will build on work currently underway in several states and  assist  states and tribes in
                                         VII-4

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evaluating their readiness to participate in NEIEN, support their efforts to complete necessary
changes to their information management systems to facilitate NEIEN participation, and enhance
state information integration efforts.

       The Central Data Exchange (CDX) will be EPA's enterprise-wide portal to the Agency's
information network. It will also serve as EPA's node on NEIEN with the states. CDX will support
and translate different data transmission formats used by states, facilities, and laboratories.

       In partnership with states, the Agency will continue its efforts to expand publicly available
information, both electronically via the Internet and through other non-electronic media.  This
includes the Envirofacts database, a major data warehouse that contains 11 national databases. It is
used extensively by EPA, the states, and the public.

       In 2002, the Agency  will continue  its efforts to promote  public access through the
Agency-wide Access to  Interpretative Documents (AID, formally known as  Enhanced Public
Access). This project is intended to make all  significant Agency guidance, policy statements, and
site-specific interpretations of the environmental management practices of regulated entities
electronically accessible to the states, industry, and the public in a secure manner.

       EPA will continue to manage the Toxics Release Inventory (TRJ) Program.  The TRI
Program provides the public with information on the releases and other waste management activities
of toxic chemicals. Two laws, Section 313 of the Emergency Planning and Community Right-To-
Know Act (EPCRA) and Section 6607 of the Pollution Prevention Act (PPA), mandate that EPA
annually collect information on listed  toxic chemicals front certain industries and make the
information available to the public through various means, including a publicly accessible national
database.  Using this information, citizens, businesses,  community groups, researchers, and
governments can work together to better protect the environment.

       In 2002, EPA will continue its effort  to reduce the TRI reporting burden on industry and
improve TRI data quality by distributing its new software tool, TRI Made Easy (TRI-ME). EPA also
will increase the percentage of TRI  chemical  forms that are  submitted in  digital  format
(electronically and via floppy disc). EPA will also continue to refine and expand the public's access
to the TRI data by improving the TRI data access tools.

       In 2002, the Agency will continue to modernize its information systems in cooperation with
the states. Modernization efforts will include data integration and data quality. These projects will
be planned and managed under an Agency-wide process that includes the Clinger-Cohen Act
investment review and oversight by EPA management.

       EPA's information technology (IT) program will maintain its commitment to strong customer
service and strategic investment in new technology to ensure our continued ability to deliver IT
service efficiently, effectively, and securely.  Through a continuous emphasis on acquiring the right
IT skills, technologies, and services, EPA will take additional steps in strengthening and securing


                                         VII-5

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the Agency's IT infrastructure. As a part of this effort, the Agency will complete 30 risk assessments
on the Agency' s central infrastructure and financial and mission critical environmental systems. The
results  of these assessments will be documented and used to guide  future investment decision
making focused on improving IT security and services.

       The Agency' s Quality System is designed to ensure that the environmental data collected and
used by the Agency are of appropriate quality for their intended use. Policies and procedures have
been established throughout the Agency to assist individual data collectors, data users, and decision
makers in defining their needs for environmental data and in ensuring that the data they develop and
use meet the stated needs. All Agency organizations that collect or use environmental data and their
managers and  staff have responsibilities under the Agency's Quality  System to develop and
implement a quality system for their program consistent with the Agency's system.  Organizations
that receive Agency funds for environmental data  collection and use must also develop and
implement  quality systems to ensure that their decisions are supported by data of known and
documented quality. These organizations include contractors, not-for-profit organizations (such as
universities) and state, local, and tribal governments.

       EPA's Quality Staff will develop the Agency-wide policies and procedures for planning,
documenting, implementing, and assessing data collection and use in Agency decisions. The Quality
Staff will also develop training material on the various policies and oversee implementation of EPA
organizations' Quality Systems. These Agency-wide policies are intended to ensure that the Agency
gets the "right data" for its decisions.

       To promote environmental literacy and help the nation meet its educational goals, EPA has
created a national program to deliver environmental education training to  educators across the
country. A key ingredient of education reform is to provide teachers with the knowledge and skills
they need to be more effective educators. Many efforts are underway to better equip teachers for the
21st century. Students and adults are provided knowledge about environmental issues along with
important critical thinking and problem solving skills needed to be effective learners and decision
makers.

       The Agency will continue to contribute to the Agency-wide Enhanced Public Access Project.
This Project is intended to make all significant Agency guidance, policy statements and site-specific
interpretations of the regulated entities'  environmental management practices  electronically
accessible to the Regions, states, industry and  the public.  In 2002, 90% of enforcement and
compliance policy and guidance will be available on the Internet within thirty days of issuance. EPA
will continue to manage telephone hotlines, disburse brochures and reports via the National Service
Center for Environmental Publications (NSCEP), respond to public  inquiries and maintain our
national library networks to serve those without personal computers.

       The Agency's environmental justice program will help communities access information to
ensure that  they do not experience a disproportionate amount of pollution. Since 1994, more  than
950 grants  have been awarded to community organizations. As a result of these grant awards,
                                          VII-6

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community-based organizations (i.e., grassroots groups, churches, and other nonprofit organizations)
have expanded citizen involvement and given residents the tools to learn more about exposure to
environmental harms and about associated risks, and, consequently, to protect their families and their
communities as they see fit. These small grants have served as the "seed-money" for empowerment
of the residents of these communities, allowing them to speak for themselves and make their own
decisions. In 2002, the program will continue to assist community-based organizations through the
community small grants program.

       Research

       In FY 2002, to improve the scientific basis for decision making, the Agency will continue
to provide technical guidance for conducting risk assessments.  To achieve this goal, the Agency's
Risk Assessment Forum will focus in three areas:  cumulative risk assessment, ecological risk
assessment, and  risk assessments for children.  Efforts will result in technical guidance on the
identification of appropriate age groupings for exposure assessments for children, technical issue
papers and a framework for preparing cumulative risk assessments. The Agency will also collect,
manage, and present environmental information for the benefit of the Agency and the public in order
to enhance the availability and utility of data, information, and tools for decision making. To that
end, the Agency will develop new and/or update Agency consensus human health assessments of 9
environmental substances of high priority to EPA and make them publicly available on Integrated
Risk Information System (IRIS).
External Factors

       EPA's information comes from many sources, including states, tribes, local governments,
research, and industry.  Therefore, working in partnership with state and tribal governments is an
essential element of our information programs, and seeking advice and input from the regulated
community and the public will ground our information programs and approaches and make them
more responsive to stakeholders' needs. To achieve a truly integrated environmental information
network that increases efficiency and fosters information sharing, we must work with those who
provide and use EPA's information to ensure that data are used properly, maintained effectively, and
protected appropriately.

       To be efficient and cost-effective, EPA's information systems and technology infrastructure
must be flexible enough to respond to changes and take advantage of innovations in technology.  To
reduce our vulnerabilities and ensure that we can meet current and future information needs, EPA's
systems and technology infrastructure must keep pace with advances in available technology.

       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
                                         VII-7

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increasingly involved in environmental decision making, and their need for information and more
sophisticated analytical tools is growing.
                                          VII-8

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                          Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

                         Quality Environmental Information

Objective #1: Increase Availability of Quality Health and Environmental Information

      Through 2006, EPA will  continue to increase the availability of quality health and
environmental information through educational services, partnerships, and other methods designed
to meet EPA's major data needs, make data sets more compatible, make reporting and exchange
methods more efficient, and foster informed decision making.

                                 Resource Summary
                                (Dollars in thousands)
FY 1999 FY 2000
Enacted Actual
Increase Availability of Quality Health and
Environmental Information
Environmental Program & Management
State and Tribal Assistance Grants
Hazardous Substance Superfund
Total Workyears
$99,791.9
$98,732.2
$0.0
$1,059.7
606.90
$86,211.5
$84,587.5
$0,0
$1,624.0
535.60
FY2001
Enacted
$95,812.3
$93,835.1
$0.0
$1,977.2
516.00
FY2002
Request
$117,378.7
$90,746.0
$25,000.0
$1,632.7
$492.5
Key Programs
(Dollars in thousands)


Toxic Release Inventory / Right-to-Know (RtK)
EMPACT
Reinventing Environmental Information (REI)
Reinvention Programs, Development and
FY 1999
Enacted
$0.0
$1,235.1
$12,547.8
$0.0
FY 2000
Enacted
$7,817.4
$1,414.3
$0.0
$0.0
FY 2001
Enacted
$13,602,7
$0.0
$0,0
$1,623.1
FY 2002
Request
$11,840.6
$0.0
$0.0
$1,791.3
 Coordination
                                        VII-9

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Environmental Education Division
GLOBE
Small, Minority, Women-Owned Business
Assistance
SBREFA
Center for Environmental Statistics (CEIS)
Information Technology Management
System Modernization
Congressional Projects
NACEPT Support
NAFTA Implementation
Direct Public Information and Assistance
Congressional/Legislative Analysis
National Association Liaison
Regional Operations and Liaison
Information Exchange Network
Public Access
Data Collection
Data Standards
Information Integration
Rent, Utilities and Security
Administrative Services
FY1999
Enacted
$7,398.3
$0.0
$2,064.4
$760.3
$3,965.8
$4,234.8
$0.0
$0.0
$2,490.0
$537.0
$4,492.0
$5,121.5
$224.6
$408.5
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$28.1
FY 2000
Enacted
$5,970.3
$1,000.0
$2,188.8
$777.3
$0.0
$0.0
$4,834.7
$1,968.5
$1,655.7
$674.6
$4,196.0
$4,164.2
$254.9
$467.3
$0.0
$10,283.8
$955.3
$4,283.8
$890.0
$0.0
$1,374.8
FY 2001
Enacted
$9,578,1
$997.8
$2,040.8
$570.6
$0.0
$1,270.4
$8,099.2
$1,917.1
$1,556.2
$402.2
$4,331.2
$4,350.5
$2352
$427.6
$0.0
$4,036.1
$2,096.6
$3,952.8
$3,719.8
$6,903.7
$575.5
FY2002
Request
$8,518.3
$0.0
$2,152.8
$603.6
$0.0
$0.0
$7,254.6
$2,029.4
$1,654.6
$427.6
$11,097.8
$4,787.6
$258.7
$470.6
$25,000.0
$5,623.3
$1,299.6
$3,356.4
$3,500.0
$7,377.3
$591.1
VII-10

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                                           FY 1999
                                           Enacted
      FY2000
      Enacted
        FY 2001
        Enacted
        FY 2002
        Request
 Regional Management
$0.0
$332.0
$779.8
$113.3
 FY 2002 Request

       Key to achieving quality information will  be the further development of the National
 Environmental Exchange Network (NEIEN). NEIEN is a comprehensive and integrated information
 exchange network that is being designed to facilitate information sharing  among EPA and its
 partners using standardized data formats and definitions, a centralized approached to receiving and
. distributing information, and improved access to timely and reliable environmental information. As
 envisioned, NEIEN will be an Internet-based system that will consist of computers, terminals, and
 databases that will enable information exchanges among participating partners.

       NEIEN will fundamentally change the way the Agency and the  states do business and will
 improve data accuracy, reduce burden, and improve the utility of environmental information for
 decision making at all levels. NEIEN builds on a strengthened partnership between EPA and the
 states. It uses an Internet-based, multi-media approach to environmental information exchange that
 is standards-based, highly connected, dynamic, flexible, and secure. NEIEN,  with the broad-based
 voluntary participation of  the states and EPA programs, will provide a wide range of shared
 environmental information to the states, tribes, localities, regulated community, EPA, and the public.

       In 2002,  EPA will launch a new grant program that will provide  the states and tribes
 assistance to develop NEIEN. This new grant program will build on work currently underway in
 several states and assist states and tribes in evaluating their readiness to participate in NEIEN,
 enhance their efforts to complete necessary changes to their information management systems to
 facilitate NEIEN participation, and support state information integration efforts. The grant program
 would also provide training and other technical assistance programs to assist states and tribes in
 developing and implementing NEIEN.

       The Central Data Exchange (CDX) is a focal point for securely receiving, translating, and
 forwarding data to EPA's data systems. In 2002, the CDX infrastructure, a key component of the
 NEIEN, will become fully operational and 15 states will use it to electronically provide data to EPA
 thereby  improving  data  quality.   Additionally,  100  percent of facility  data from EPA's
 internet-available national systems data for facilities will be part of the Integrated Error Correction
 Process (IECP). Users of EPA's Website will have a tool for notifying the Agency of potential errors
 they find in our public access data systems. The IECP also includes an internal process by which
 the Agency  will follow-up on all reported potential errors, with provisions for notifying the
 individual who reported the error of the corrections made,

       EPA will continue to manage and support "EPA.Gov,"a comprehensive world-wide web site
 to ensure public access to Agency information such as databases, press  releases, locator tools, fact
                                          VII-11

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 sheets, regulations, policy and guidance, and other Agency information. The Agency will continue
 to expand the capabilities of the Enyirofacts database to provide comprehensive environmental
 information to Federal agencies, environmental interest groups, the regulated community, state and
 local communities, tribal governments, and the general public.

       EPA will continue to operate and improve the TRI Program. As mandated by Section 313
 of EPCRA and Section 6607 of the PPA, EPA will annually collect information on listed toxic
 chemicals from certain industries and make the information available to the public through various
 means, including a publicly accessible national database. EPA will continue its efforts to reduce the
 TRI reporting burden on industry and improve TRI data quality by releasing TRI-ME, Version 2.0.
 TRI-ME is an interactive and user-friendly software tool to assist facilities in determining and
 completing their TRI reporting obligations. In 2002, EPA also will increase the number of TRI
 chemical forms that are submitted in digital format (electronically and via floppy disc). Further,
 EPA will continue to refine and expand the public's access and understanding of the TRI data by
 improving the TRI data access tools.

       In 2002, the Agency will modernize its programmatic information systems. Modernization
. efforts will include providing a single portal for receiving electronic environmental reports. We will
 further implement the  use of  standardized data formats in EPA's information systems. These
 projects  will be planned  and managed  under an Agency-wide process that  includes the
 Clinger-Cohen Act investment review and oversight by EPA management.

       EPA pursues a collaborative approach to environmental protection that brings together public
 and private stakeholders within a community to identify local environmental concerns, set priorities
 and forge comprehensive solutions. This approach integrates environmental protection with public
 needs, considers long-term ecosystem health and fosters linkages between economic prosperity and
 environmental well-being. It encourages communities to create a vision of environmental health and
 quality of life and to adopt public activities compatible with that vision.

       EPA has extensive responsibilities in supporting community-based environmental protection
 efforts. EPA strives to make environmental information and tools available to communities and
 citizens to help them make informed choices about their local environment, including where to live
 and work, decide what potential exposures are acceptable, assess the general environmental health
 of themselves and their families, identify pollution prevention opportunities, and build a consensus
 on actions  to improve the local environment. One  aspect  of  this effort is the  successful
 implementation of the TRI program, building on the concept of right-to-know, which has greatly
 expanded the availability of chemical release information to the public. It has encouraged citizens
 and communities to become active participants in environmental decision-making.

       In 2002, EPA will provide technical assistance to ongoing community-based environmental
 protection initiatives; disseminate a manual on how to perform community assessments; develop and
 provide training to build the capacity of EPA regions, states, local organizations and other partners
 to assist communities in the use of tools, information and data; expand the community assessment

                                         VII-12

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tools and manual to include multimedia analysis; and continue broad collaboration with other
agencies, governments, and organizations working to assist communities,

       EPA assures that training and education materials and programs keep pace with the
information and data that the Agency provides to the public. Communities receive not only data but
the tools, training, and assistance to use those data in ways that help citizens make informed
environmental decisions.  EPA  supports and encourages  the interdisciplinary environmental
education programs of state and local governments,  schools and universities and nonprofit
organizations through grants, teacher training, internships and national recognition of outstanding
efforts and model programs.  EPA works to build stronger partnerships with other governmental
organizations and with the private sector to improve public understanding of the role of science in
environmental decision-making.

       Making information accessible to the public is a primary component of an effective strategy
to expand the public's right-to-know.  The environment in which the Pesticides program operates
is constantly changing.  New pesticide active ingredients are developed for registration; new uses
are proposed; new standards (as with FQPA) are applied to old pesticides;  and new information is
received about pesticides and their impact on the environment. Because pesticides affect everyone*
it is especially important that citizenshave accessible, comprehensive, and useful information about
their effects and uses.

       EPA will continue to ensure that our website is continuously updated and maintained with
the most recent developments and findings concerning pesticides information to help communities
make informed decisions regarding their health and environment.  The Agency will continue to
coordinate with-other Federal Agencies on Internet updates.

       In support of the Agency's information initiatives, the environmental education program
provides resources to educate students, teachers, communities, tribes and the general public about
environmental and health protection.  The educator training program delivers training to educate
professionals nationwide.  The grant program supports initiatives that encourage replication of model
environmental education curricula programs and materials for formal and non-formal educators. The
National Environmental Education  Advisory  Council  provides EPA with  advice  on the
implementation of the National Environmental Education Act; reports to Congress on the status of
environmental education in the U.S.; and makes recommendations for improving environmental
education.

       The Agency will also utilize the National Advisory Council on Environmental Policy and
Technology (NACEPT) and its standing committees, facilitate and monitor the Agency's response
to NACEPT recommendations, and manage statutorily-mandated advisory committees dealing with
implementation of the environmental side accords to the North American Free Trade Agreement
(NAFTA) and with environmental and infrastructure issues along the U.S./Mexico border.  The
respective  committees  are:  the Good Neighbor Environmental Board and the National and
Governmental Advisory Committees. Through these stakeholder committees, EPA receives broad


                                         VII-13

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advice as national and international environmental policy is developed and implemented.  This is
accomplished mainly by ensuring staff support and executing efficient and effective operation of
EPA advisory committees. EPA has recently concentrated on enhancing the Agency's ability to use
stakeholder processes, and its federal  advisory capacity has improved vastly to enhance EPA's
environmental decision making.

      EPA controls an ever increasing quantity of correspondence, and routes, logs, and tracks
Agency Freedom of Information Act (FOIA) requests. The Office of Executive Secretariat guides
and trains Agency personnel in FOIA and correspondence activities; prepares a yearly FOIA report
to Congress; provides  program oversight  on FOIA;  and manages  and  tracks executive
correspondence.

      The regulatory development process ensures the Agency's compliance with various statutes
and Executive Orders.  Through improved and streamlined regulatory processes that include
increased public information, EPA is committed to providing quality information to stakeholders.
EPA has also been a leader in the Federal government in the use of consensus building techniques
to assist  in the area of regulatory development.   EPA will continue to develop  negotiated
rulemakings, policy dialogues and other consensus based stakeholder involvement techniques at the
national,  Regional, local and international levels.  Involvement of stakeholders in crafting the
programs and rules  by which they will abide promotes innovative, effective and cost effective
solutions and fosters earlier, more complete compliance with environmental protection measures.

      In 2002,  the Agency  will continue to advance this objective by  ensuring that EPA
rulemakings  adhere to all applicable statutory  and executive  requirements, and  achieve
environmental results with a minimum burden on the public.  The Agency will continue to expand
outreach  to small entities such as small businesses, small governments, and small non-profits,
establishing formal mechanisms and building partnerships to advocate small entity involvement in
Agency rulemakings. EPA will complete Regulatory Flexibility analyses for all of its Rulemakings
that may have significant impacts on  a substantial number of small entities and initiate a small
communities  outreach  program  to gather information on  impacts of EPA rules on small
communities. The Small Business Ombudsman will augment the Small Entities Homepage with
specific information on rules for 20% of the sectors identified by the Agency, and improve small
entity outreach through training and technical assistance to Agency managers and Staff.

      In support of this objective, the Office of Congressional and Intergovernmental Relations
(OCIR) responds to  congressional requests for information, written and oral testimony, briefings,
and briefing materials. It ensures that Congress receives the information needed to make policy and
program decisions on environmental and public health issues. In addition to working with Congress,
OCIR works closely with the Agency's program offices to keep them informed of current activities
that affect their particular subject areas. OCIR develops legislative strategies to support the program
offices and coordinates Agency appearances before congressional committees, as well as responses
to congressional transcripts and Q&A's.
                                        VII-14

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     OCIR also serves as the Agency's primary point of contact for national associations and other
groups representing state and local governments and for individual states and local governments on
environmental issues, programs and initiatives. It ensures that these groups receive the information
needed to make decisions on environmental and public health issues, and have an appropriate level
EPA person available to participate in meetings or assemblies. This office works closely with the
Agency's program offices to keep them informed of current activities at the local level and of any
policies the local governments and national associations may be advocating that affect a particular
program office' s subject area. OCIR also supports the Local Government Advisory Committee and
the Small Town Advisory Subcommittee.

        As the lead for  liaison with state and local  agencies, OCIR provides regular, timely
communication by preparing the Agency ' s leadership to effectively address priority  issues and
develop appropriate responses. It works with states and state associations to  ensure that state
concerns are considered in Agency policies, guidance, and regulations. Additionally, OCIR functions
as the lead on state issues relating to the National Environmental Performance Partnerships System.

     The Agency's Office of Small and Disadvantaged Business Utilization provides technical
assistance to both Headquarters and Regional program office personnel to ensure that small, minority
and women-owned businesses receive a "fair share" of Agency procurement dollars. This "fair share"
may be received either directly or indirectly through EPA grants, contracts, cooperative agreements,
or interagency agreements. Pursuant to P.L, 102-3 89, the Agency has a national goal of 8% utilization
of minority and women-owned businesses in the total value of Agency procurements and financial
assistance agreements. This activity  enhances the ability of small, minority and women-owned
businesses to participate in the Agency's objective to protect public health and the environment.

      The enforcement and compliance assurance program will continue to support data integration
projects,  such as Integrated Data for Enforcement Analysis (IDEA) which makes  integrated
compliance data from several media-specific data bases available nationally in an interactive, online
mode. The enforcement and compliance assurance program will continue to work to increase states
use of IDEA by demonstrating its analytical capabilities to support targeting and screening based on
risk and other compliance concerns.

      The enforcement and compliance  assurance program will continue to  contribute to the
Agency-wide Enhanced Public Access Project, intended to make all significant Agency guidance,
policy  statements  and site-specific  interpretations  of the regulated  entities'  environmental
management practices electronically accessible to the Regions, states, industry and the public.  In
2002, 90% of enforcement and compliance policy and guidance will be available on the Internet
within thirty days of issuance. EPA intends to maintain summaries of all significant cases available
on the Internet
                                         VII-15

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FY 2002 Change from FY 2001 Enacted

EPM

       (-$ 1,000,000) The FY 2002 Request is $ 1,000,000 below the FY 2001 Enacted budget level
       due to  a reduction the Greater Learning and Observations to Benefit the Environment
       (GLOBE) program.

       (+$2,126,800) The F Y 2002 Request is $2,126,800 above the F Y 2001 Enacted budget level
       for increased payroll costs.

       (-$ 109,200)  The F Y 2002 Request is $ 109,200 below the F Y 2001 Enacted budget level due
       to reductions taken to regional environmental education activities.
STAG
       (+$25,000,000) Establishment of state/tribal grants for the NEIEN program.
Annual Performance Goals and Performance Measures
Enhanced Public Access

In 2002     Improve public access to compliance and enforcement documents and data through
           multimedia data integration projects and other studies, analyses and communication/outreach
           activities.

In 2001     Improve public access to compliance and enforcement documents and data through
           multimedia data integration projects and other studies, analyses and communication/outreach
           activities.

In 2000     EPA improved public access to compliance  and  enforcement documents and data,
           particularly to high risk communities, through multimedia data integration projects and other
           studies, analyses and communication/outreach activities.
Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
Increase use of Sector Facilities Indexing
Project website user sessions over FY99 levels

Increase by 50% (over FY99 levels) the number
of states with direct access to Integrated Data
for enforcement Analysis (IDEA)

Percent of OECA policy and guidance
documents available through the Internet
           34
           94
                                           percent
                                states
                                percent
                                            VII-16

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By the end of FY 2001, all ten EPA Regions
will have an enforcement and compliance
web-site                                                            10                     Websites

Make 90% of enforcement and compliance
policies and guidances issued this FY available
on the Internet within 30 days of issuance                               90         90         Percent

By April 2001, make summaries of all
significant cases available on the Internet                               100                    Percent

Baseline:    In FY 2001, we will accelerate our efforts to promote public access including activities such
            as Regional enforcement and  compliance web-sites  and access  to  enforcement  and
            compliance  documents newly issued in FY 2001.

Information Exchange Network

In 2002     The Central Data Exchange, a key component of .the environmental information exchange
            network, will become fully operational and 15 states will be using it to send data to EPA
            thereby improving data consistency with participating states.

Performance Measures:                       FY 1999    FY2000    FY2001    FY2002
                                            Actuals     Actuals     Estimate    Request

States using the Central Data Exchange
to send data to EPA.                                                             15         States

Baseline:    The FY 2001 baseline for this program is zero as it is a new program.

Data Quality

In 2002     100% of the publicly available facility data from EPA's national systems accessible on the
            EPA Website will be part of the Integrated Error Correction Process, reducing data error.

Performance Measures:                       FY 1999    FY2000    FY2001    FY2002
                                            Actuals     Actuals     Estimate    Request

Publicly available facility data from  EPA's
national systems, accessible on the EPA
Website, will be part of the Integrated
Error Correction Process.                                                         100        Percent

Baseline:    In FY  2001, 90% of the publically available facility data from EPA's national systems
            accessible on the EPA  Website will be part of the Integrated Error Correction Process.

Process and Disseminate TRI Information - OEI

In 2002     EPA will reduce reporting burden, improve data quality, lower program costs, and speed data
            publication by increasing the amount of TRI electronic reporting from 70 to 85 percent.
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In 2001      Process all submitted facility chemical release reports; publish annual summary of TRI data;
            provide improved information to the public about TRI chemicals; and maximize public
            access to TRI information.

In 2000      Processed all submitted facility chemical release reports, published annual summary of TRI
            data, provided improved information to the public about TRI chemicals, and maximized
            public access to TRI information.
Performance Measures:


Total electronic reporting of all chemical
submissions processed. (Includes diskette
submissions created by ATRS and other
reporting software programs, as well as
web-based submissions.)

TRI Public Data Release

Chemical submissions and revisions processed.

TRIS database complete and report issued

Data quality: keep data entry error rate below
1% per form
FY1999    FY2000     FY2001    FY2002
Actuals     Actuals      Estimate    Request
                                    85
            Published    1 Report

            119,000     110,000

            On Target   02/2001


                        below 1%

                        72%
Increase magnetic media use for TRI reporting

Baseline:    In FY 2001, TRI electronic reporting will be 70%.

Service Delivery

In 2002     EPA will support the improvement and availability of environmental education materials and
            programs by assisting states in increasing their delivery capacity, supporting correlations of
            national and state standards to environmental education guidelines and promoting research
            and evaluation.
                                   Percent

                                   Published

                                   Forms

                                   Published


                                   Error Rate

                                   Magnetic Media
Performance Measures:


Educators trained

HQ grants that address capacity building

HQ grants that address education reform issues
FY 1999
Actuals
FY 2000
Actuals
FY2001     FY2002
Estimate     Request

            5,000       teachers

            1           grant

            1           grant
Baseline:    A  contractor will be hired in FY 2001  to  evaluate and report back to EPA  on the
            effectiveness of guidance issued in FY 2000. The report will be completed and provided to
            EPA in FY 2001.
                                               VII-18

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Verification and Validation of Performance Measures

Performance Measure: Total electronic reporting will  comprise  85%  of all TRI chemical
submissions processed.  (Includes diskette submissions created by  ATRS and other reporting
software programs, as well as web-based submissions.)
Performance Database: TRIS data management system
Data Source: Facility chemical release reports submitted by the regulated community
QA/QC Procedures: The Agency does not control the quality of the data submitted by the regulated
community. However, EPA does work with the regulated community to improve the quality of their
estimates. EPA also implements a process to verify that the information provided by the facilities
is correctly entered into TRIS.
Data Quality Review: The quality of the data contained in the TRI chemical reports is dependent
upon the quality of the data that the reporting facility uses to estimate its releases and other waste
management quantities.
Data Limitations: Use of the data should be based on the user's understanding that the Agency does
not have direct assurance of the accuracy of the facilities' measurement and reporting processes.
New/Improved Data or Systems: None

Performance Measure: 15 states using the CDX to send data to EPA.
Performance Database: CDX facility (new)
Data Source: CDX facility (new)
QA/QC Procedures: In development                               '             :
Data Quality Review: In development
Data Limitations: None
New/Improved Data or Systems: The CDX facility will be a new system and is in development at
this time. When operational it will streamline die process by which the regulated community and
the states provide information to EPA.

Performance Measure: 100% of publicly available facility data  from EPA's  national systems
accessible on the EPA Website will be part of the Integrated Error Correction Process.
Performance Database: Integrated Error Correction Process (IECP)
Data Source: Records of possible data errors detected are generated by users of the EPA Website
through the IECP on-line tool.
QA/QC Procedures: EPA implements a protocol for reviewing, routing, tracking and reporting the
result of all error notices, from receipt through final resolution.
Data Quality Review: The IECP includes a process for review of all error reports and the associated
data to determine whether any changes in the data are needed.
Data Limitations: None
New/Improved Data or Systems: The IECP provides a mechanism for identifying and correcting
potential errors in EPA's publicly available data systems.

Performance Measure: EPA will make 90% of enforcement and compliance policies and
guidances issued in FY 2002 available on the Internet within 30 days of issuance

                                       VII-19

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Performance Database:  Output Measure.  Internal tracking system.

Data Source: Manual system. HQ will track date document was issued and uploaded to the internet.

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems:  None


Coordination with Other Agencies

       EPA works with its state partners under the State/EPA Information Management Workgroup.
This workgroup has created seven different action teams to j ointly develop key information projects.
EPA also participates in  multiple workgroups with other federal agencies including the U.S.
Geological Survey, Federal Geographic Data Committee, and Chief Information Officer Council.

       The TRI program coordinates with other federal agencies, particularly those that are required
to report to TRI pursuant to Executive Order 12856, such as the Department of Energy and the
Department of Defense. EPA works with the other agencies in helping them determine how their
facilities should best report to TRI. Further, other agencies such as the Internal Revenue Service use
TRI data. EPA works with these agencies to facilitate access and use of the data. The TRI program
coordinates with other federal agencies in performing hazard assessments of TRI chemicals to ensure
that consistent data sets are used and, to the extent possible, that interpretation of data is consistent.

       In addition, the TRI is one of the leading systems of its type in the world. As such, EPA
participates in a number  of international fora on TRI-type systems.  TRI is one part, with the
Canadian equivalent of TRI, of the North American Pollutant Release and Transfer Register which
is disseminated by the North American Commission for Environmental Cooperation, hi these
arenas, EPA coordinates with the Department of State and other federal agencies.

       The TRI program has substantial interaction with state agencies. States use TRI data for a
number of purposes; for instance, many states use TRI data in geographic information systems. Each
year, the National Conference of State Legislatures conducts an assessment of state TRI programs.
This assessment gathers basic information about the state TRI programs, including data management
and data use, as well as outreach and services for the public and for industry. The survey has found
that some states enter some or all of the TRI data into their state database^ while others download
all of EPA's TRI data into their database. Most states conduct outreach programs to explain TRI
reporting requirements to industry.  In addition,  most states provide copies of the TRI reporting
forms filed by facilities to the public upon request. States and EPA work tpgether to ensure that data


                                         VII-20

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collected are effectively utilized.

      EPA chairs the Federal  Task Force for Environmental Education,  which facilitates
communication and collaboration among federal agencies and departments that have common
interests in supporting and implementing environmental education. The Task Force emphasizes joint
interagency environmental education projects that leverage both federal and no-federal dollars.
Members include the U.S. Departments of Education, Interior, Agriculture, and Energy, as well as
NASA, NOAA and the National Science Foundation.

      EPA will work with the Small Business Administration as appropriate on regulations that
affect small businesses.

      National Environmental Justice Program: Quarterly meetings are held with agencies named
in Executive Order 12898 to review the environmental justice activities underway and to discuss
participation in the National Environmental Justice Advisory Council (NEJAC) and issues raised
during NEJAC meetings.
Statutory Authorities

National Environmental Education Act

Federal Managers Financial Integrity Act (FMIFA)

Government Performance and Results Act (GPRA)

Clinger-Cohen Act

Computer Security Act

Privacy Act

Clean Air Act (42 U.S.C. 7601-767Iq)

Clean Water Act (33 U.S.C. 1251 -1387)

Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 9601-9675)

Emergency Planning and Community Right-to-Eaiow Act (EPCRA)
section 313 (42 U.S.C. 11000141050)

Government Paperwork Elimination Act
                                        VII-21

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Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) (7 U.S. C. 136-136y)

Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)

Resource Conservation and Recovery Act (42 U.S.C. 6901-6992k)

Safe Drinking Water Act (SDWA) section 1445 (42 U.S.C. 300f-300j-26)

Toxic Substance Control Act section 14 (15 U.S.C. 2601-2692)

North American Agreement on Environmental Cooperation

Freedom of Information Act (5 U.S.C. 552)

Paperwork Reduction Act Amendment of 1995 (44 U.S.C. 3501-3520)

Small Business Regulatory Enforcement Fairness Act

Unfunded Mandates Reform Act

Congressional Review Act

Regulatory Flexibility Act

Executive Order 12866

Executive  Order 12915  - Federal Implementation of the North American Agreement on
Environmental Cooperation

Executive Order 12916 - Implementation of the Border Environment Cooperation Commission
and the North American Development Bank

Plain Language Executive Order

Federal Food, Drug and Cosmetic Act (FFDCA)

Electronic Freedom of Information Act

Congressional Review Act

CPRKAofl986

Enterprise for the Americas Initiative Act (7 U.S.C. 5404)


                                       VII-22

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Environmental Research, Development., and Demonstration Act (ERDDA) of 1981




Federal Advisory Committee Act (FACA) (5 U.S.C. App.)




Food Quality Protection Act (FQPA)




Superfund Amendments and Reauthorization Act (SARA)




North American Agreement on Environmental Cooperation
                                     VII-23

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                          Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

                         Quality Environmental Information


Objective #2: Provide Access to Tools for Using Environmental Information

      By 2006, EPA will provide access to new analytical or interpretive tools beyond 2000 levels
so that the public can more easily and accurately use and interpret environmental information.
                                 Resource Summary
                                (Dollars in thousands)
FY 1999 FY 2000
Enacted Actual
Provide Access to Tools for Using
Environmental Information
Environmental Program & Management
Science & Technology
Hazardous Substance Superfund
Total Workyears
$23,351.0
$10,451.1
$11,662.7
$1,237.2
1.2.1.90
$54,857.8
$36,102.5
$16,706.6
$2,048.7
165.20
FY2001
Enacted
$63,302.4
$42,110.9
$17,735.8
$3,455.7
191.10
FY2002
Request
$54,837.6
$40,812.6
$9,978.2
$4,046.8
193.50
Key Programs
(Dollars in thousands)

Pesticide Registration
Pesticide Reregistration
Toxic Release Inventory / Right-to-Know (RtK)
EMPACT
FY 1999
Enacted
$265.1
$259,2
$19,799.6
$753.1
FY 2000
Enacted
$181.3
$1802
$1,096.3
$2,730.7
FY2001
Enacted
$0.0
$0.0
$458.2
$10,607.5
FY2002
Request
$208.7
$201.1
$1,707.2
$0.0
                                       VII-24

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                                             FY1999      FY2000      FY2001     FY2002
                                             Enacted      Enacted      Enacted     Request
Information Technology Management

System Modernization

Public Access

Data Collection

Data Standards

Geospatial

Information Integration

Rent, Utilities and Security

Administrative Services

Regional Management
$0,0     $12,552.8     $11,637.3     $12,599.6

$0.0      $1,705.8      $4,775.0      $5,835.4

$0.0     $17,230.6     $11,245.3     $11,123.1

$0.0         $0.0         $0.0       $272.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$3,119.9
$630.2
$0.0
$849.8
$581.8
$59.5
$3,092.5
$522.3
$1,940.8
$2,950.7
$1,318.2
$1,013.3
$3,465.5
$512.3
$2,400.0
$3,127.4
$1,434.6
$317.5
FY 2002 Request

       EPA will continue to support comprehensive approaches to environmental protection,
including supporting information management approaches that integrate and interpret the many data
sets and information sources that are used to support environmental decisions. These include the
increased availability and accuracy of locational and spatial data and related mapping tools.  To
further enhance these efforts, the Agency is committed to working in partnership with the U.S.
Geological Survey and the Federal Geographic Data Committee to implement a national spatial data
infrastructure, which will enhance communities' ability to pinpoint the environmental information
most relevant to their locale.

       EPA, its partners, and stakeholders have analytical needs that require more man simple
access to data. To understand what the data mean, and to then know how the data can be used, users
need guidelines to aid data analysis and interpretation; metadata and contextual information to
support understanding data and its limitations; reliable analytical tools for analysis; and targeted
analytical products that help to answer key questions, save users time and effort, and demonstrate
the use of best practices in environmental analysis.

       EPA will provide environmental analysis  that responds to the needs of its partners and
stakeholders, complementing data access with analysis to support environmental understanding. On
a continuing basis, EPA will carry out dialogues with its partners and stakeholders to make sure their
                                          VII-25

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needs are fully understood and are being addressed. Users will have choices between accessing data
as submitted, using EPA-provided analytical tools to help draw their own conclusions from the data,
and using analytical information products that present information derived from the data.  This
environment will encourage and enable geospatial analyses to support community-based efforts,
visualization to facilitate interpretation of data, and statistical analyses that use reliable software and
algorithms to aid in data interpretation. EPA will promote analytical approaches that integrate data
from different sources to provide a broader view and understanding of the environment, encouraging
informed decision-making. Significantly, EPA will undertake a "best practices" series of documents
specifying the proper steps for creating information for decision making. This is a crucial portion
of the tools and background that will be developed to assure that data are used appropriately and
effectively when combined from different sources. Insights gained from environmental analysis will
support a fuller understanding of environmental outcome, and remaining problems and challenges.
Environmental analysis will support better regulatory decision-making and greater knowledge of the
environment. In turn,  environmental analysis will lead to better targeting of those data gaps and
opportunities that, when fulfilled, will provide the greatest .benefits, at  affordable costs and
acceptable risks.

       The EPA Quality System encompasses both management and technical activities pertaining
to the planning, implementation, and assessment of environmental programs within the Agency's
mission and scope. The goal of the Agency-wide Quality System is to ensure that environmental
programs and decisions are supported by data of the type and quality needed and expected for then-
intended use, and that decisions involving environmental technology are supported by appropriate
quality-assured engineering standards and practices.

       In  2002, EPA will continue its national implementation of Window to My Environment
(WME), an innovative new public access application that provides state-of-the-art interactive maps
with links to federal, state, and local environmental data. WME provides the public with detailed
information on environmental issues and conditions affecting the community or location of interest.
In 2002, WME will be extended to eight EPA Regions.

       In 2002, EPA  will continue to update  its programmatic and administrative information
systems.   Modernizing  our administrative  information systems  will  provide support for
implementing Agency technology decisions which affect capacity on networks, data storage, and
services to the Agency and public. Updating  our programmatic systems will include acquiring
Agency-wide corporate data sets and improving the accuracy of locational data. These projects will
be planned and managed under an Agency-wide process that includes the Clinger-Cohen Act
investment review and oversight by EPA management.

       The Office of Environmental Justice (within the Office of Enforcement and Compliance
Assurance) will continue to manage the Agency's Environmental Justice Community Small Grants
Program whose purpose is to assist community-based organizations that are working to develop
solutions to local environmental issues. The Community Small Grants Program was established in
1994, and, since then, more than 950 grants of up to $20,000 each have been awarded to community
                                         VII-26

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organizations.  As a result of these grant awards, community-based organizations (i.e., grassroots
groups, churches, and other nonprofit organizations) have expanded citizen involvement and given
people the tools to learn more about exposure to environmental harms and risks, and, consequently,
to protect their families and their communities as they see fit.

      The Agency will continue to support the National Environmental Justice Advisory Council
(NEJAC) which provides the Agency significant input from all interested stakeholders such as
community-based organizations, business and industry, academic institutions, state, tribal and local
governments, non-governmental organizations, and environmental groups. Six subcommittees were
created around EPA's broad statutory mandates and are sponsored by the related EPA office.  The
subcommittees are: Air/Water; Enforcement; Health/Research; Indigenous People; International; and
Waste/Facility Siting.

      The Agency will also continue to chair an Interagency Working Group (IWG) consisting of
eleven departments and agencies as well as White House offices to ensure that environmental justice
concerns are incorporated into all federal programs. In 2000, the IWG began implementation of an
Action Agency which is centered around fifteen demonstration projects in diverse urban and rural
communities in virtually all regions of the nation to achieve a variety of goals, ranging from
environmental cleanup, brownfields and economic development, and children's health to community
education and capacity building. To date, these demonstration projects have leveraged more than
$12 million in public/private resources.

      In support of the Agency's environmental justice efforts, criminal investigations and civil
enforcement actions will be focused on industries that have repeatedly violated environmental laws
in minority and/or low-income areas.

      Research

      EPA supports  a  portfolio of research and regulatory programs to develop and apply
environmental health and ecological risk assessments methods, models, and information, ecological
toxicity  information,  and improvements in monitoring, measurement, and  data management
technologies to protecting human health and the environment. Providing Americans with public
access to sound environmental information is essential to protecting the environment. Access to
environmental information enables the public to be involved and to make informed environmental
decision. An important effort in striving toward that goal is the Integrated Risk Information System
(IRIS), which  is an EPA database of Agency consensus health information on environmental
contaminants.  The database is used extensively by EPA Program Offices, Regions, the states, and
the general  public where consistent, reliable toxicity information  is needed for credible risk
assessments. Also under this objective are 1) the Agency's Risk Assessment Forurn (RAF), which
promotes EPA-wide consensus on difficult and controversial risk assessment issues and ensures that
this consensus receives appropriate peer input  and review, and is  incorporated into EPA risk
                                        VII-27

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assessment guidance; and 2) the Evaluation and Interpretation of Suitable Tests in AQU1RE1
(EVISTA) database, which provides EPA's program offices and regions with ecological toxicity
information.

       IRIS

       The human health effects information in IRIS is widely used for risk assessments and other
health evaluations at all levels of government, as well as in the public and private sectors. The
currency and credibility of health effects information is critical for credible risk assessments. As
more risk-based decision-making takes place at the state and local levels, access to credible health
effects information is essential, but difficult for individuals  to find or  generate.  To ensure the
quality, accuracy, credibility, and applicability of IRIS data,  all assessments undergo external
scientific peer review.

       In FY 2002, the Agency's research program will continue its efforts to: 1) produce, update,
and maintain health  assessments in IRIS;  2) ensure appropriate external peer review of IRIS
summaries and support documents; 3) facilitate Agency consensus and resolve issues in a timely
manner; 4) maintain a widely-accessible Internet version of IRIS, available at the local level to
support community-based environmental protection; 5) provide active outreach and communication
with users; and 6) provide long-term maintenance of the IRIS web site, including explanatory
materials and communication with users, and outreach to potential new users.

       Risk Assessment Forum

       The Agency's Risk Assessment Forum (RAF) will continue to develop anumber of products
to assist risk assessors, such as developing risk assessment guidelines, technical panel reports on
special  risk assessment issues, and peer consultation and peer review workshops addressing
controversial risk assessment issues. In FY 2002, the RAF will focus in three areas: cumulative risk
assessment, ecological risk assessment, and risk assessments for children.

       EVISTA

       EVISTA involves the development and maintenance of a high quality database as a means
of providing ecological toxicity information to States,  Regions and the public.  The EVISTA
database contains ecological toxicity information used to develop water quality  criteria for the
protection of aquatic life, wildlife and terrestrial plants. The database will make available evaluated
and interpreted results of selected aquatic toxicity tests. EVISTA became available on the Internet
in F Y 2001 with the initial release of critically evaluated chemical effects data to support aquatic life
and wildlife risk assessments and criteria development. In FY 2002, the Agency will continue to
develop and maintain the EVISTA database.
       'ACQUIRE (Aquatic Toxicity Information Retrieval) is a database containing scientific.papers published both nationally
and internationally on the toxic effects of chemicals to aquatic organisms and plants.

                                         VII-28

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FY 2002 Change from FY 2001 Enacted

EPM
       (-$4,620.7; -16.8 FTE) This reduction reflects elimination of the BMP ACT program since
       environmental data is being made available to the public through other EPA programs.

       (-$201,900, -0,1 FTE) The FY2002 request is $10.7 and 0.1 total workyears below the FY
       2001 enacted budget level due to the Agency's streamlining and efficiency efforts which will
       allow it to reduce its workyear ceiling by 500 total workyears.

S&T
       (-$5,986.8; -8,0 FTE) This reduction reflects elimination of the EMPACT program since
       environmental data is being made available to the public through other EPA programs.

       Research

S&T

•      No significant change.


Annual Performance Goals and Performance Measures

Environmental Justice

In 2002     Ensure that EPA's policies, programs and activities address disproportionately exposed and
           under-represented population issues so that no segment suffers disproportionately from
           adverse health and environmental effects.

In 2001     Ensure that EPA's policies, programs and activities address disproportionately exposed and
           under-represented population issues so that no segment suffers disproportionately from
           adverse health and environmental effects.

In 2000     Through efforts such as the distribution of grants and holding community meetings, EPA
           worked to ensure that the Agency's policies, programs, and activities address minority and
           low income issues so no segment of the population suffers disproportionately from adverse
           environmental effects.

In 2000     As a result of public meetings held, no new "hot spots" were identified.

In 1999     EPA  actively promoted environmental  justice issues by holding  16 "NEJAC meetings
           (exceeding the target of 10) and  by providing  environmental justice  grants to 100
           communities.

Performance Measures:                    FY 1999    FY2000    FY2001    FY2002
                                       Actuals    Actuals     Estimate    Request

EJ Community Grants                      100                                        Grants


                                           VII-29

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NEJAC Meetings
16
            Meetings
Number of EPA-sponsored public meetings
held where disproportionately disadvantaged
communities participate.

Respond within 60 days to requests made
to each Region and AA-ship to address
complaints heard during public comment
period at NEJAC.

Number of grants awarded to low income,
minority communities for addressing
environmental problems.

Conduct NEJAC meetings and focused
Roundtables in local communities where
problems have been identified.

Award 90 grants to organizations which
address environmental problems in communities
comprised primarily of low income and
minority populations.

Hold 25 EPA-sponsored public meetings held where
disproportionately impacted and disadvantaged
communities participate

Respond within 60 days to 75% of requests made
to each Region and National Program Manager
to address complaints heard during public
comment period at NEJAC

Conduct 18 National Environmental Justice
Advisory Committee (NEJAC) meetings and

focused roundtables in local communities
where problems have been identified.

Hold meetings with the National
Environmental Justice Advisory
Committee (NEJAC) and  communities
disproportionately impacted by environmental
hazards, which focus on environmental policy
issues.

Increase the cumulative number of demonstration
projects established under the Federal Interagency
Working Group on Environmental Justice.
           31
            meetings
           75
           62
            18
                       90
                       25
90
                       75
            percent
            grants
           meetings
Grants
           Meetings
           Percent
                       18
           Meetings
                       18
                                  30
28
           Meetings
Projects
                                               VII-30

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Baseline:    A means of identifying problem areas is through: public comments received during the
            National  Environmental Justice Advisory  Committee (NEJAC) meetings; reviewing
            Environmental Impact Statements (EIS) filed under the National Environmental Policy Act
            (NEPA) in which environmental justice (EJ) indicators occur as issues of concern which EPA
            will either resolve or work with the responsible agency to community's concern about new
            or renewals of permits under RCRA, CWA, CAA, etc.; and complaints filed under Title VI
            of the Civil Rights Act.

Improve EPA's Internet Site

In 1999     EPA improved the quality, effectiveness and efficiency of EPA's Internet site by increasing
            the number of Website hits by 42%, increasing the number of Internet site pages available
            by 41.4% and increasing the number of distinct hosts accessing the Website by 25.3%.

Performance Measures:                      FY1999    FY2000   FY2001     FY2002
                                           Actuals     Actuals    Estimate     Request

Percentage of website hits.                    42                                            Percent

Percentage of internet site pages available.      41.4                                           Percent

Percentage of distinct hosts accessing the
Website.                                   25.3                                           Percent

Baseline:

Research

Risk Assessment

In 2002     Conduct outreach and training activities to provide guidance and support for Agency and
            external stakeholders on environmental decision-making and risk assessment.

In 2001     Provide guidance for risk assessment to improve the scientific basis of environmental
            decision making.

In 2000     EPA developed data interpretation  and risk communication  tools that improve our
            understanding of the risk from environmental stressors on human and ecological health and
            made them available to the public.

In 1999     Neurotoxicity guidelines and the chemical mixtures report were completed.  The revised
            cancer guidelines have been delayed.  EPA asked the Science Advisory Board to again
            review the cancer guidelines, and to review the chloroform risk assessment that applies the
            guidelines.

Performance Measures:                       FY 1999    FY2000    FY2001     FY2002
                                            Actuals     Actuals     Estimate     Request

Publication of final Guidance for Carcinogenic
Risk Assessment, Neurotoxicity Risk Assessment,
and Health Risk Assessment of Chemical Mixtures.          2 Reports
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Develop a web-enabled inventory of
environmental information that provides
information about and access to data sets,
databases, models, and documents produced
by or used by the Agency.

The Agency's Risk Assessment Forum will
develop a framework to integrate the
assessment of cancer and noncancer endpoints.

The Risk Assessment Forum will develop
an improved framework for the use of
Toxicity Equivalency Factors for dioxins,
furans, and PCBs in aquatic and wildlife
risk assessments.

The Agency's Risk Assessment Forum
will develop technical issue papers and
develop a framework for preparing cumulative
risk assessments.

The Agency's Risk Assessment Forum
will develop guidance on determining
management objectives and selecting
assessment endpoints for ecological risk
assessment.

The Agency's Risk Assessment Forum will
develop technical guidance on the identification
of appropriate age groupings for exposure
assessments for children.

Using a distance learning format, the Risk
Assessment Forum will develop Internet-based
training on the use of the ecological risk
assessment guidelines.
            inventory
            framework
            framework
            framework
            guidance
            guidance
1
RA training
Baseline:    Historically, risk assessment guidelines training has occurred by developing presentation
            materials which supported classroom instruction. The administration of this training has been
            limited by the availability of personnel to conduct training and other factors necessary to
            support holding training sessions in the regions and laboratories.  However, technological
            advances in recent years, specifically the capability of the Internet to deliver distance learning
            programs, make available a training vehicle that can overcome these limitations. The Forum
            will employ the  Internet to provide training on  the application of the Guidelines for
            Ecological Risk Assessment. The Internet training structure will be developed utilizing
            existing classroom materials. An Internet training environment will allow students to learn
            through interactive self-paced lessons and through periodic on-line instructor interaction.
                                                 VII-32

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Research
Environmental Science Information

In 2002     Improve environmental decision making, risk assessment and risk communication by: 1)
            providing a web-enabled, searchable inventory of ORD information and tools; 2) illustrating
            cumulative risk assessment techniques; 3) synthesizing human health assessment information
            on environmental substances.

In 2001     Collect, manage, and present environmental information for the benefit of the Agency and
            the public in order to enhance the availability and utility of data, information, and tools for
            decision-making.

In 2000     Five of the 12 planned Agency-wide human health assessments were completed.  Several
            assessments were not completed due to the necessity to resolve scientific issues and respond
            to peer review comments.

In 1999     Two IRIS summary documents were completed. Delays in completing other IRIS summaries
            are due mainly to science issues inherent to completing the assessments.

In 1999     Eight (8) pilot projects were completed in FY 1999 under the BMP ACT program. These
            projects implemented timely and high quality environmental monitoring technologies in
            EMPACT cities.
Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
Add or update to IRIS 15 summaries of the
potential adverse health effects of specific
chemical substances.                         2

Develop Agency consensus human health
assessments (new and updated assessments)
of 12 environmental substances of high priority
to EPA and make them publicly available on IRIS.

Award 5-7 grants to EMPACT cities to
implement timely and high quality environmental
monitoring technologies,                     8

Develop new and/or update Agency
consensus human health assessments of
15 environmental substances of high priority to
EPA and make them publicly available on IRIS.

Develop a priority list of existing data,
information, and tools to provide assistance to
EPA laboratories in the initial development of
their inventories, to be made publicly available
through EIMS.

Risk Assessment Forum will develop 3 to 5
                                               Summaries
                                               assessments
                                               Grants
                        15
                       assessments
                                               list
                                               VII-33

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case examples to illustrate selected aspects
of the cumulative risk assessment framework.                                    3-5        case study

Develop Agency consensus human health
assessments (new and updated assessments)
of 9 environmental substances of high priority
to EPA and make them publicly available on
IRIS.                                                                      9          assessments

Expand the (3RD inventory of environmental
 information in EIMS with project descriptions,
data, models and other products by forming
partnerships with 4 EPA Regions and 1 Lab as
content providers.                                                           1          inventory

Baseline:    Currently, it is difficult to find, access and use the various research and information products
           produced by EPA.  What is needed is a searchable, Web-enabled database of research
           projects, data, information and tools, such as the Environmental Information Management
           System (EIMS). The challenge facing EPA in 2002 is to adopt and implement business
           practices that result in a complete and continually up-to-date inventory in EIMS. Additional
           work supporting this goal includes a plan by the Risk Assessment Forum (RAF) to develop
           more comprehensive Agency-wide guidance on cumulative risk assessment. A technical
           panel convened under the auspices of the RAF has been working to develop a cumulative risk
           assessment framework and cumulative risk assessment case studies.  The development of
           case studies is a critical step in the development of more comprehensive cumulative risk
           assessment guidance. A final area of effort under this goal relates to the synthesis of human
           health information. The Integrated Risk Information System (IRIS) is a database of EPA
           consensus opinions of the human health effects that may result from exposure to various
           chemical substances found in the environment. The information in IRIS is widely used in
           risk assessments and regulations at the Federal, State, and local levels and by the public.
           Information in  IRIS must be continually updated to reflect emerging new science and
           methodologies.
Verification and Validation of Performance Measures

Performance  Measure:  Hold meetings with the National Environmental Justice Advisory
Committee (NE JAC) and communities disproportionately impacted by environmental hazards,
which focus on environmental policy issues

Performance  Database:  Output Measure.  Internal tracking system.

Data Source:  HQ will keep track of these meetings manually.

QA/QC Procedures:  None

Data Quality  Review: None
                                             VII-34

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Data Limitations: None

New/Improved Data or Systems: None

Performance Measure:  Award a minimum of 90 grants to organizations which address
environmental problems in communities comprised primarily of low income and minority
populations

Performance Database:  Output Measure. Internal tracking system.

Data Source: Manual system. (Regional Environmental Justice grant coordinators will input data.)

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None


Coordination with Other Agencies

       With respect  to community-based environmental programs, EPA coordinates with state,
tribal, and local agencies and with non-governmental organizations to design and implement specific
projects. The nature  and degree of EPA's interaction with other entities varies widely, depending
on the nature of the project and the location(s) in which it is implemented. EPA is working closely
with the FGDC and the USGS to develop and implement the infrastructure for national spatial data.

       In 2002, EPA will continue to coordinate with key federal data sharing partners including the
USGS and the Fish and Wildlife Service as well as state and local data sharing partners in public
access information initiatives such as Window-to-My-Environment and Enviromapper.

       National Environmental Justice Program: Quarterly meetings are held with agencies named
hi Executive Order 12898 to review the environmental justice activities underway and to discuss
participation in the National Environmental Justice Advisory Council (NEJAC) and issues raised
during NEJAC meetings.


       Research

       In developing health assessments for the IRIS data base, EPA interacts frequently with other
Federal agencies involved in health assessments and research. In the initial-drafting, documents such


                                       VII-35

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as "lexicological Profiles" produced by Health and Human Services/Agency for Toxic Substances
and Disease Registry (HHS/ATSDR) are routinely consulted for information.  Assessments and
research findings from the Food and Drug Administration, National Toxicology Program, National
Institute of Environmental Health Sciences, and the National Library of Medicine are other examples
of sources consulted and utilized. Federal agencies are also consulted for peer review of draft IRIS
assessments. Finally, the IRIS web site has electronic links to other agencies' web sites for the
education and convenience of the IRIS user.
Statutory Authorities

Emergency Planning and Community Right-to-Know Act

Pollution Prevention Act

Federal Fungicide, Insecticide and Rodenticide Act

Federal Food, Drug and Cosmetic Act

Safe Drinking Water Act

Federal Managers Financial Integrity Act

Government Performance and Results Act

Paperwork Reduction Act

Freedom of Information Act

Computer Security Act

Privacy Act

Electronic Freedom of Information Act

Government Paperwork Elimination Act

National Environmental Education Act

Government Performance and Results Act (GPRA)

Clinger-Cohen Act



                                       VII-36

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Clean Air Act (CAA) (42 U.S.C. 7601 -767Iq)

Clean Water Act (CWA) (33 U.S.C. 1251 -1387)

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) (42 U.S.C.
9601-9675)

Emergency Planning and Community Right-to-Know Act (EPCRA) section 313 (42 U.S.C. 110001 -
11050)

Federal Advisory Committee Act (FACA) (5 U.S.C. App.)

Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) (7 U.S. C. 136-136y)

Pollution Prevent Act (PPA) (42 U.S.C. 13101-13109)

Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901-6992k)

Safe Drinking Water Act (SDWA) section 1445 (42 U.S.C. 300f-300j-26)

Toxic Substance Control Act (TSCA) section 14 (15 U.S.C. 2601-2692)

North American Agreement on Environmental Cooperation

Paperwork Reduction Act Amendment of 1995 (44 U.S.C. 3501-3520)

Small Business Regulatory Enforcement Fairness Act (SBREFA)

Unfunded Mandates Reform Act

Congressional Review Act

Regulatory Flexibility Act

Executive Order 12866

      Research

Clean Air Act (CAA) and amendments
Clean Water Act (CWA) and amendments
Environmental Research, Development, and Demonstration Act (ERDDA) of 1981
Toxic Substance Control Act (TSCA)
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)
                                      VII-37

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Food Quality Protection Act (FQPA)
Safe Drinking Water Act (SDWA) and amendments
Federal Food, Drag and Cosmetic Act (FFDCA)
Emergency Planning and Community Right-to-Know Act (EPCRKA) of 1986
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Superfund Authorization Reauthorization Act (SARA)
                                     VII-38

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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                           Quality Environmental Information

Objective #3: Improve Agency Information Infrastructure and Security

       Through 2006, EPA will continue to improve the reliability, capability, and security of EPA's
information infrastructure.

                                  Resource Summary
                                  (Dollars in thousands)
                                        FY 1999
                                        Enacted
        FY 2000
        Actual
FY 2001
Enacted
FY2002
Request
Improve Agency Information Infrastructure
and Security.

    EnvironmentalProgram & Management

    Hazardous Substance Superfund

       Total Workyears
$63.8     $15,864.9     $19,138.7     $16,911.8


$63.8     $15,271.3     $16,642.5     $14,827.4

 $0.0        $593.6      $2,496.2      $2,084.4

  0.4          74.2         183.5        168.3
                                     Key Programs
                                  (Dollars in thousands)

EMPACT
Information Technology Management
System Modernization
Public Access
Information Integration
Rent, Utilities and Security
FY1999
Enacted
$6,313.7
$0.0
$0.0
$0.0
$0.0
$0.0
FY2000
Enacted
$252.6
$13,919.4
$200.0
$2,723.3
$0.0
$0.0
FY2001
Enacted
$0.0
$12,390.1
$600.0
$420.9
$199.6
$409.9
FY 2002
Request
$0.0
$12,675,8
$600.0
$3,004.8
$0.0
$452.7
                                         VII-39

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FY 1999 FY 2000
Enacted Enacted
Administrative Services
Regional Management
$0.0
$0.0
$68.1
$0.0
FY 2001 FY 2002
Enacted Request
$64.6
$1,200.0
$0.0
$0.0
FY 2002 Request

       During 2002, EPA will continue to provide a robust and secure information infrastructure,
thereby increasing the availability and accessibility of environmental information to customers and
stakeholders. EPA's information technology (IT) support function consists of infrastructure support
services, as well as policy and planning services. The Agency's IT infrastructure provides the basic
foundation for development and management of all EPA information systems and information
products.  It comprises the Agency's hardware, software, and telecommunications assets and the
technical services to support those infrastructure assets. These services range from mainframe, super
computing, and distributed processing services to desktop computing support (including email, voice
mail, Intranet/Internet connections, and training), local area network operations, and application
development consulting.

       Building and maintaining a credible and effective Agency IT program requires a strong
commitment to customer service as well as a commitment to strategic investment in new technology
to ensure efficient services delivery. It also requires a commitment to develop a highly skilled IT
workforce capable of managing complex, multi-year information  technology projects.  EPA will
continue to identify the skills, the technology and the services critical to effectively managing and
securing the Agency's IT infrastructure. When acquiring these critical resources, EPA will ensure
its investments are cost-effective and based on the investment principles established in the Clinger-
Cohen Act.

       The IT infrastructure planning process continues to be guided by the Agency's information
priorities, including strengthening information security, ensuring data integrity, and leveraging new
technology to support EPA environmental programs. With the  emergence of the Internet as a
fundamental business tool, EPA's new paradigm of security has become one that emphasizes not
only mainframe security but also extends to the Agency's growing  use of the Internet. The Agency
will continue to emphasize the goal of strengthening security plans and organizational security
programs through additional reviews and oversight on an Agency-wide scale. Increased efforts and
investments will also be made to raise the awareness level of the EPA workforce to ensure managers
understand their individual responsibilities for protecting information resources. In addition, EPA
will continue its aggressive efforts to respond to evolving threats and integrate information security
into its day-to-day business.
                                         VII-40

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FY 2002 Change from FY 2001 Enacted

MULTI-APPRO?

•   (-$1,416,500, -12.4 FTE EPM, -$373,100 SF) Reflects a reduction to information resources
    operations.



Annual Performance Goals and Performance Measures

Information Security

In 2002     Complete risk assessments on the Agency's critical infrastructure systems, critical financial
           systems, and mission critical environmental systems.

Performance Measures:                     FY 1999    FY2000   FY2001    FY2002
                                       Actuals    Actuals    Estimate    Request

Critical infrastructure systems risk assessment
findings will be formally documented and
transmitted to systems owners and managers
in a formal Risk Assessment document.                                       12         Systems

Critical financial systems risk assessment findings
will be formally documented and transmitted to
systems owners and managers in a formal Risk
Assessment document.                                                     13         Systems

Mission critical environmental systems risk
assessment findings will be formally documented
and transmitted to systems owners and managers
in a formal Risk Assessment document.                                       5          Systems

Baseline:    In FY 2001, OEI will complete four risk assessments. The breakout is as follows: Critical
           Infrastructure Systems is one, Mission Critical Systems are two, and Critical Financial
           Systems is one.


Verification and Validation of Performance Measures

Performance Measure: Risks assessment findings will be formally documented and transmitted to
system owners and managers in a formal risk assessment document for the following:
           12 critical infrastructure systems;
           13 critical financial systems; and
           5 missions critical environmental systems.
Performance Database: N/A
Data Source: Manual Files:
                                           VII-41

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QA/QC Procedures: Acceptance review procedure exists for each risk assessment to ensure
accuracy of the data in the reports.
Data Quality Review: N/A
Data Limitations: N/A
New/Improved Data or Systems: All reviewed systems will have data security, including integrity
and confidentiality safeguards validated and improvements documented as appropriate. Systems
owners are required to document security reports in security plans 120 days after receipt of formal
risk assessment.
Coordination with Other Agencies

   EPA will continue to coordinate with other federal agencies on IT infrastructure and security
issues by participating on the Federal Chief Information Officers' (CIO) Council.  Comprised of
members from the 28 largest federal agencies, the CIO Council serves as the primary mechanism for
sharing information on IT best practices and for developing common solutions to IT challenges
facing the federal government. EPA will continue to participate on the CIO Council Committees
on security, capital planning, workforce development, interoperability, and e-government. EPA will
also continue coordinating with state agencies on IT infrastructure and security issues through
working with state organizations such as the National Association of State Information Resources
Executives.
Statutory Authorities

Federal Advisory Committee Act

Government Information Security Reform Action

Comprehensive Environmental Response, Compensation, and Liability Act

Clean Air Act and amendments

Clean Water Act and amendments

Environmental Research, Development, and Demonstration Act of 1981

Toxic Substance Control Act

Federal Insecticide, Fungicide, and Rodenticide Act

Food Quality Protection Act



                                        VII-42

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Safe Drinking Water Act and amendments




Federal Food, Drag and Cosmetic Act




Emergency Planning and Community Right-to-Know




Comprehensive Environmental Response, Compensation, and Liability Act




Superfund Amendments and Reauthorization Act




The Government Performance and Results Act (1993)




Government Management Reform Act (1994)




Clinger-Cohen Act




Paperwork Reduction Act,




Freedom of Information Act




Computer Security Act




Privacy Act




Electronic Freedom of Information Act
                                      VII-43

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Goal 8: Sound Science

-------
Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 8: Sound Science, Improved Understanding of Environmental Risks,
       and Greater Innovation to Address Environmental Problems	 VIII-1
       Conduct Research for Ecosystem Assessment and Restoration	,.. VIII-9
       Improve Scientific Basis to Manage Environmental Hazards and Exposures	  VIII-19
       Enhance Capabilities to Respond to Future Environmental Developments	  VIII-28
       Improve Environmental Systems Management	   VIII-38
       Quantify Environmental Results of Partnerships Approaches		.. k	,	  VIII-47
       Incorporate Innovative Approaches	  VIII-50
       Demonstrate Regional Capability to Assist Environmental Decision Making	  VIII-56
       Conduct Peer Review to Improve Agency Decisions	  VIII-58

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                              Environmental Protection Agency

             FY 2002 Annual Performance Plan and Congressional Justification

            Sound Science, Improved Understanding of Environmental Risk, and
                  Greater Innovation to Address Environmental Problems
Strategic Goal: EPA will develop and apply the best available science for addressing current and
future environmental hazards as well as new approaches toward improving environmental protection.
                                      Resource Summary
                                      (Dollars in thousands)

                                            FYI999      FY2000       FY 2.0.01       FY2002
                                            Enacted       Actual       Enacted       Request

Goal 08   Sound Science, Improved             $335,618.2     $295,022.4     $334,326.0     $307,247.7
          Understanding of Env. Risk and
          Greater Innovation to Address
          Env. Problems

Obj. 01   Conduct Research for Ecosystem       $110,540.6     $100,537.0     $118,158.6     $114,865.9
          Assessment and Restoration.

Obj. 02   Improve Scientific Basis to Manage       $49,902.0      $40,335.5      $55,349.0      $55,388.0
          Environmental Hazards and
          Exposures.

Obj. 03   Enhance Capabilities to Respond to       $54,935.7      $45,565.6      $57,719.7      $55,848.2
          Future Environmental Developments.

Obj. 04   Improve Environmental Systems         $68,385.2      $63,784.4      $58,562.1      $45,462.3
          Management.

Obj. 05   Quantify Environmental Results of       $14,660.6      $16,807.5       $9,604.2       $7,626.8
          Partnership Approaches.

Obj. 06   Incorporate Innovative Approaches.       $27,975.4      $19,593,8      $25,313.6      $21,449.6

Obj. 07   Demonstrate Regional Capability to         $6,732.0       $5,896.9       $6,843.7       $3,594.1
          Assist Environmental Decision
          Making,

Obj. 08   Conduct Peer Review to Improve          $2,486.7       $2,501.7       $2,775,1       $3,012.8
          Agency Decisions.

                 Total Workyears                 1,205.7         1,036.3        1,024.1          998.4
*For proper comparison with the FY 2002 request, the historic data has bten converted to be consistent with the new 2000 Strategic Plan structure. Goal and Objective resources for
FY 1999, FY 2000, and FY 2001 may therefore differ from the resources reported in the FY 2001 Annual Plan and Budget and die FY 2000 Annual Report


                                             VIII-1

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Background and Context

       EPA has a responsibility to ensure that efforts to reduce environmental risks are based on the
best available scientific information. Sound science allows us to identify the most important sources
of risk to human health and the environment as well as the best means to detect, abate, and avoid
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 8, EPA conducts core research to improve our understanding of
the fundamental principles underlying risk assessment and risk management.

       Another important role for EPA is to pursue innovations that show promise for improving
environmental and public health protection. In recent years, a number of significant trends have
accelerated innovation in environmental programs.  For example, during the past three decades,
states have steadily assumed more responsibility  for managing programs; in  doing so, they have
gained valuable experience and insight into how environmental programs can be improved. Seeking
to cut costs, increase competitiveness, and operate as good corporate citizens, companies have
looked beyond environmental requirements and towards new areas, including voluntary performance
partnerships, for improving environmental •— and economic — performance.  Schools, hospitals and
other organizations that haven't traditionally interacted with EPA have become more active partners
in environmental protection.  Perhaps most significantly, many diverse organizations - representing
very different viewpoints—acknowledge the complexity of today's environmental problems and the
need for new solutions for  solving them.  Thus, these interests  in regulatory  reform, stronger
environmental stewardship, and problem-solving are driving important innovations in environmental
programs and practices.
Means and Strategy

       EPA is continuing to ensure that it is a source of sound scientific and technical information,
and that it is on the leading  edge of environmental protection innovations that will allow
achievement of our 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 the EPA Strategic Plan, available research plans, EPA
program offices and Regions, Federal research partners, and  outside peer advisory bodies such as
the Science Advisory Board (SAB) and others. This input is  used internally by cross-office teams
that prioritize research areas using risk and other factors such as National Science and Technology
Council (NSTC) research and  development priorities,  client office priorities, court orders and
legislative mandates.  EPA's research program will increase our understanding of environmental
processes and our capability to assess environmental risks to both human health, and ecosystems.
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       In the area of ecosystem protection research, EPA will strive to establish baseline conditions
from which changes, and ultimately trends, in the ecological condition of the Nation's aquatic
ecosystems  can  be confidently documented, and from which the results of environmental
management policies can be evaluated  at regional scales.  Currently, there is a patchwork of
monitoring underway in the aquatic systems of the U.S. Due to differences in objectives, methods,
monitoring designs and needs, these data cannot be combined to estimate, with known confidence,
the magnitude or extent of improvement or degradation regionally or nationally in this economically
critical resource.  Therefore, the ability to demonstrate success or failure of increasingly flexible
watershed management policies, regionally and nationally, is also not possible. EPA's ecosystem
protection research program will provide the methods, designs and summary of existing monitoring
programs to develop the baseline required to address these weaknesses. This work is an important
step toward providing the scientific  understanding to measure, model,  maintain, or restore the
Integrity and sustainability of 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 populations to environmental agents.  Many of the current human health risk
assessment methods, models, and databases are based on  environmental risks for adults.  This
research is aimed at enhancing current risk assessment and management strategies and guidance to
better consider risk determination needs for children. This information will be useful in determining
whether children are more susceptible to environmental risks than adults and how to assess risks to
children.

       EPA's leadership role in protecting both human and ecosystem health requires that the
Agency continue to be vigilant in identifying and addressing emerging issues. EPA will continue
to enhance its  capabilities to  anticipate,  understand,  and respond to future environmental
developments. EPA will address these uncertainties by conducting research in areas that combine
human health and ecological considerations. Additionally, EPA will conduct research to enhance
its capacity to evaluate the economic costs and benefits and other social impacts of environment
policies.  EPA is currently investigating,  with the help of the National Academy for Public
Administration (NAPA), a number of futures methodologies for their potential use in strategic,
multi-year, and annual planning efforts.  Continued research in the  areas of endocrine disrupting
chemicals  and mercury are leading toward the development of  improved methodologies for
integrated human health and environmental risk assessment and sound  approaches for risk
management. EPA efforts, 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, and other social impacts of
environmental decision-making. Benefits of these programs will include an improved framework
for decision-making, increased ability  to  anticipate  and perhaps prevent potentially serious
environmental risks, improved methods for integrated human health and ecosystem risk assessments,
improved methods for assessing socio-economic factors, and enhanced communication with the
public and other stakeholders.

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       The Agency also  seeks  to  develop and verify improved tools and technologies for
characterizing, preventing, and cleaning up contaminants associated with high priority human health
and environmental  problems.   In order to do this,  EPA will  develop, evaluate, and  deliver
technologies and approaches from multiple sectors (e.g., metal finishing, printing, pulp and paper,
and textile). Emphasis will be placed on developing preventive approaches and assessing those that
are currently available for industries and communities having difficulty meeting pollution standards.
The Agency is accumulating data on performance and costs of environmental pollution prevention
and control technologies which will serve as a basis for EPA, as well as other organizations, to
evaluate and compare effectiveness and costs of a variety of technologies developed within and
outside the Agency.

       EPA's strategy  for solving  environmental  problems and improving our system  of
environmental protection also includes developing, implementing and institutionalizing new policy
tools, collaborative community-based and sector-based strategies, and the capacity to experiment,
test, and disseminate ideas that result in better environmental outcomes. For example, EPA's Sector
Program Plan 2001-2005 sets forth a vision and specific actions to enhance the effectiveness of
innovative sector activities (at the Federal and state levels) and to fully integrate sector approaches
into the Agency's overall mission and core programs. Similarly, EPA is strengthening its capacity
to evaluate innovative approaches and make institutional changes that adopt successful innovations.

       Sector strategies complement current EPA activities by allowing the Agency to approach
issues more effectively; tailor efforts to the particular characteristics of each sector; identify related
groups of stakeholders with interest in a set of issues; link EPA's efforts with those of other
agencies; and craft new approaches to environmental protection. EPA is building on successful
experiences from  its current sector-based programs such as the Sustainable Industries Partnership
Programs, Design for the Environment, and sector-based compliance assistance programs to expand
the ways  in which the  Agency is working in partnership with industry  sectors to meet high
environmental standards using flexible, innovative approaches. While these programs are innovative
in and of themselves, they also foster the development of innovations at the industry sector level,
testing new regulatory ideas, technologies, tools, and incentives in non-adversarial settings.

       Project XL provides regulated entities a gateway to work with EPA, its co-regulators, and
other stakeholders to develop and implement alternative environmental management strategies that
achieve superior environmental performance in exchange for regulatory flexibility. These initiatives
offer a balance between the uncertainty in testing promising new approaches and safeguards to
ensure the protection of human health and the environment. These pilots, and those conducted under
the EPA/State Joint Agreement to Pursue Regulatory Innovation and other initiatives, if successful,
will be integrated into our system of environmental protection.  Sector-based and facility-based
approaches will offer valuable supplements to traditional media-specific environmental policy and,
along with place-based and pollutant-based approaches, offer a menu of solutions to environmental
issues.
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Strategic Objectives and FY2002 Annual Performance Goals

Objective 01: Conduct Research for Ecosystem Assessment and Restoration

•     Produce a report on trends in acid deposition and the acidity of lakes and streams to assess
      progress toward reducing the impacts of acid rain.

Objective 02: Improve Scientific Basis to Manage Environmental Hazards and Exposures

Objective 03: Enhance Capabilities to Respond to Future Environmental Developments

Objective 04: Improve Environmental Systems Management

•     Improve  P2 tools for the industrial sector and other sectors by providing updated/new
      methods  and approaches to  help users simulate product, process or system redesign and
      evaluate resulting pollution levels, impacts and costs.

•     Formalize generic testing protocols for technology performance verification, and provide
      additional performance verifications  of pollution prevention, control and monitoring
      technologies in all environmental media.

Objective 05: Quantify Environmental Results of Partnership Approaches

Objective 06: Incorporate Innovative Approaches

Objective 07: Demonstrate Regional Capability to Assist Environmental Decision Making

Objective 08: Conduct Peer Review to Improve Agency Decisions

Highlights

Research for Ecosystem Assessment and Restoration

     . In order to balance the growth of human activity and 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 are of those changes, and what can be done to prevent, mitigate, or adapt
to those changes.  In FY 2002, the Western Environmental Monitoring & Assessment Program
(WEMAP) study will be a primary activity of EPA's monitoring research. Streams and coastal
estuaries will continue to be sampled in FY 2002 and landscape indicators will continue to  be
developed. This study will determine the aquatic biological health of streams in arid, grassland, and
alpine ecosystems in western states.  The national coastal monitoring program will survey the
condition of the Nation's coastal resources (with an emphasi s on estuaries) by creating an integrated,
comprehensive coastal monitoring program among the coastal states. By the end of FY 2001,  all


                                        VIII-5

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coastal states will have completed at least an initial round of estuarine sampling. Activities in FY
2002 will focus on analysis and reporting of data resulting from FY 2000 and FY 2001 sampling.

Research for Human Health Risk Assessment

       An important aim of human health research in FY 2002 will  be the development of
measurements, methods  and  models to  evaluate exposures and effects of environmental
contaminants, particularly in children. The Agency will continue to support a children's research
program specifically targeted at addressing major areas of uncertainty  and susceptibility.  An
important element of the program is the children's research centers.  These nine university-based
research centers (eight of which are co-funded by NIEHS) explore a range of children's risk issues,
including childhood asthma and development disorders.  Other children's research focuses on data
gaps (e.g., longitudinal birth cohort study) and endocrine disrupters.  To address evidence suggesting
that the effects of endocrine disrupting chemicals (EDCs) exposure in children could be different
from those experienced by adults, research will continue to support the development of methods to
evaluate hazards  in immature organisms exposed to EDCs that are quantitatively or qualitatively
different from those observed in adults.

Research to Enhance Environmental Decision Making

       In recent years, EPA has begun to move beyond environmental regulation to anticipate and
prevent potential  problems before they evolve into major concerns. In FY 2002, research will focus
on improving our understanding of the impact of potential exposure to environmental pollutants on
human health and the environment, and on developing  approaches to reduce human health and
ecological risks.  This research will result in accessible, seamless, common methodologies for
combined  human health and ecological risk assessments.  This research will provide  sound
approaches for risk management so that decision-makers will have the integrated view of risk needed
to make intelligent choices.

Improve Environmental Systems Management

       EPA supports pollution prevention  as a necessary and logical strategy for dealing with
potential high-risk  human health  and environmental problems that are addressed by Federal,
environmental, and health and safety regulations.  In FY 2002, the Agency will incorporate a
systems-based approach to pollution prevention that more closely matches the multiple, interactive
stressors that threaten both human and environmental health.  In addition, pollution prevention
research will test the ability of risk assessors  and risk managers to develop tools and methodologies
to better convey the costs and benefits associated with the magnitude of risk that may be identified.

Increased Community-Based Approaches

       In FY 2002, EPA will promote development of community-based efforts to manage local
environments and  strengthen  the links  between healthy environments  and prosperous local

                                        VIII-6

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economies. EPA will continue to assist communities by providing information, analysis, and
management tools; and by working with other Federal departments and agencies and state and tribal
governments to coordinate activities that support local planning and decision making to manage
natural resources and ecological services. The Agency will also demonstrate integrated measures
of ecological and economic change to provide a foundation for better decision making at all levels,
and will provide key evaluations of processes and projects that allow successful approaches to be
shared more broadly. In addition, EPA will use Regional Geographic Initiatives (RGI) to partner
with states, local governments, private organizations, and others to solve environmental problems.

Increased Facility and Sector-Based Strategies

       EPA's strategy for improving our system of environmental protection is to pilot innovative
approaches designed to achieve better protection at less cost and, if successful, integrate those pilots
into our core practices. Through Project XL, the EPA/State Joint Agreement to Pursue Regulatory
Innovation, and other initiatives, the Agency is testing and implementing a number of innovative
ideas in various environmental programs that will lead to changes  in rules, permits, information
management, environmental stewardship, enforcement and compliance assurance, stakeholder
involvement and Agency culture.  For example,  as part of Project XL, EPA is testing ways to
streamline permitting so manufacturers can respond more quickly to market demands.

Science Advisory Board Peer Review and Consultations

       The Agency will continue to support the activities, principally peer reviews, of the Science
Advisory Board (SAB), which provides independent scientific and technical advice to Congress and
the Administrator on scientific, engineering, and economic issues that serve as the underpinnings for
Agency positions, such as research direction to regulations.

       The agenda of SAB activities is derived from requests from Congress and the Agency, as
well as self-initiated activities aimed at highlighting areas of concern that may have escaped Agency
attention or may be incompletely addressed by individual Agency office programs.

       The SAB's broad objective is to help the Agency perform the best science and use the results
of that science appropriately and effectively in making regulatory decisions. In so doing, the SAB
promotes sound science within the Agency and a wider recognition of the  quality of that science
outside the Agency.  The SAB actively consults with the Agency  on how to incorporate science
appropriately and effectively into current and new environmental  decision-making approaches.

       The use of the SAB for peer reviews also supports the Agency-wide commitment to sound
science based on rigorous peer-review, a commitment that has been re-emphasized  as a result of
GAO findings in 1997 that such efforts are applied unevenly within the Agency.  In addition, the
SAB's activities provide the kind of support described in the 1999 National Academy of Sciences
report, "Evaluating Federal Research Programs: Research and the Government Performance and
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Results Act", which concludes that the most effective way of evaluating a Federal research program
is by expert review, which includes quality review, relevance review, and benchmarking.

External Factors

       Sound science is  predicated on the desire  of the Agency to make human health and
environmental decisions based on high-quality scientific data and information.  It challenges the
Agency to perform and apply the best available science and technical analysis 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
sound science is a central tenant for actions taken by the Agency, then external factors will have a
minimal impact on the goal.

       The Office of Policy, Economics, and Innovation will lead the Agency's work to explore
legislative actions that could strengthen, expedite and stimulate innovative "second generation"
approaches to environmental protection and stewardship.
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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

          Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems
Objective # 1:  Research for Ecosystem Assessment and Restoration

       By 2008, provide the scientific understanding to measure, model, maintain, and/or restore,
at multiple scales, the integrity and sustainability of highly valued ecosystems now and in the future.

                                   Resource Summary
                                   (Dollars in thousands)
                                         FY1999
                                         Enacted
            FY2000
             Actual
FY2001
Enacted
FY 2002
Request
Conduct Research for Ecosystem Assessment
and Restoration.

    Environmental Program & Management

    Science & Technology

       Total Workyears
$110,540.6    $100,537.0     $118,158.6    $114,865.9


     $0.0      $6,576.3       $9,158.7      $8,821.1

$110,540-6     $93,960.7     $108,999.9    $106,044.8

    439.1        383,6         342.9         347.8
                                      Key Programs
                                   (Dollars in thousands)

Clean Water Exposure Research
Coastal Environmental Monitoring
FY1999
Enacted
$1,406.0
$0.0
FY2000
Enacted
$4,440.6
$6,954.0
FY 2001
Enacted
$4,448.7
$7,467.5
FY2002
Request
$4,577.8
$7,607.6
Environmental Monitoring and Assessment Program,     $33,153.5    $30,543.5     $29,470.7    $32,985.7
EMAP
Rent, Utilities and Security

Administrative Services
        $0.0      $6,754.5      $6,537.9     $7,246.2

        $0.0      $1,4262  ,    $1,647.9     $1,574.9
                                          VHI-9

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FY 2002 Request

Research

       Natural ecosystems provide valuable services and resources to the public, such as air and
water purification, flood control, raw materials for industrial processes, food, as well as less tangible
benefits such as recreation. Many human activities alter or damage ecosystems and their ability to
provide these goods and services. In order to balance the growth of human activity and the need to
protect the environment, it is important to understand the condition of ecosystems, what stressors
are changing that condition, what the consequences of those changes are, and what can be done to
prevent, mitigate, or adapt to those changes. EPA's ecological research program has four primary
areas of emphasis within this objective: 1) ecological monitoring research; 2) ecological process and
modeling; 3) ecological risk assessment;  and 4) ecological risk management and restoration.

Ecological Monitoring Research

       In FY 2002, EPA's monitoring research efforts include the Environmental Monitoring &
Assessment Program (EMAP) and the coastal monitoring program.  EMAP is developing the
monitoring science that is required to implement the Committee on Environment and Natural
Resources (CENR) National Monitoring  Framework, and to develop EPA's capability to measure
trends in the health of freshwater and marine ecosystems. In F Y 2002, the Western EMAP study will
be a primary activity of EPA's monitoring research.  This study has four areas of focus:  1)  the
landscape atlas for western states; 2) the intensive study of three watersheds (Columbia River basin,
Missouri River basin, and  San Francisco Bay region); 3) Pacific coast monitoring; and 4) a western-
wide stream survey.  The national coastal monitoring program (Coastal 2000) will survey  the
condition of the Nation's coastal resources (with an emphasis on estuaries) by creating an integrated,
comprehensive coastal monitoring program among the coastal states. By the end of FY 2001, all
coastal states will have completed at least an initial round of estuarine sampling.  Activities in FY
2002 will focus on analysis and reporting of data resulting from FY 2000 and FY 2001 sampling.

       Additional monitoring research  will focus on genetic and community-level exposure.
Environmental indicators are used in monitoring programs to estimate ecological status, and to detect
and quantify changes within an ecosystem due to chemical exposure, nutrient levels, sediments, or
changes  in landscape quality.  In FY 2002,  EPA will develop indicator methods to measure
environmental exposure for aquatic systems. Research will attempt to link biological responses to
known chemical, physical, and/or biological stressors.

       Further ecosystem monitoring research will be undertaken in the following areas: 1)
development and demonstration of indicators of estuarine environmental health; 2) assessment of
stressors to wildlife sustainability; 3) development of national aquatic ecosystem classification
systems and associated reference conditions; 4) nutrient science for watershed management;  and 5)
statistical survey design for aquatic resources.
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Ecological Process and Modeling Research

       Process and modeling research addresses biological, chemical, and physical processes
affecting the condition of ecosystems and their responses to stressors. Drawing from information
gathered by monitoring efforts, process and modeling research develops a basic understanding of the
processes that govern ecosystem function, and the technology to model those processes.  This
modeling ability allows for predictions of future landscapes, stressor patterns, ambient conditions,
and receptor responses. Predicting the impact of changes in conditions allows resource managers
to address problems in ways that will more effectively achieve their desired environmental protection
goals.

       Since measurements are not possible in every watershed because of cost and other practical
constraints, landscape indicators offer an efficient means to detect change, measure watershed level
stressors, and quantify relationships between landscape metrics and  specific parameters.  A new
generation of wall-to-wall spatial data (e.g., Multi-Resolution Landscape Characterization (MRLC)
land cover and the North American Landscape Characterization (NALC) historical landscape data),
and  advances in  geographic  information systems (GIS)  make it  possible to  evaluate the
compositional and spatial pattern of landscape characteristics*  Using this information, EPA's
landscape sciences program will conduct a national assessment of landscape change between the
early 1970's and early 2000's and evaluate the consequences of these changes on aquatic resources.

       EPA will also conduct research ^.address the effects of excess nitrogen from atmospheric
or other sources on aquatic ecosystems. This research will develop models that predict the loading-
response relationships for nitrogen in aquatic habitats. Such models can be used for stressor source
apportionment and for the assessment of management and mitigation strategies.  In addition, EPA
will develop approaches for evaluating relative risks from chemical and nonchemical stressors on
fish and wildlife populations across large areas or regions. This information can then be used to
describe habitat requirements for wildlife and the sustainability of ecological resources.

Risk Assessment Research

       EPA's risk assessment research addresses the risk posed to ecosystems by  stressors, alone
and in  combination, now and in the future.  Ecological assessments can link stressors with
consequences  and evaluate the potential for damage to particular ecosystems.  Ecological
assessments can also be used to compare the relative risks associated with different stressors,
different regional areas, and different ecosystems. This is a valuable tool for environmental risk
managers at local, state and federal levels, enabling them to identify high priority ecosystems that
are at high risk.

       The completion of the first phase of EMAP in the Mid-Atlantic region provided baseline
information on the current status of most resources in the region.  New research in F Y 2002 will
build on EMAP and other data to project future environmental conditions in the region so that risk
management activities can  be  targeted in a proactive manner.  The, Regional Vulnerability
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Assessment (ReVA) project, begun in FY 2000 as part of EPA's support for the National Science
and Technology Council's cross-Agency Integrated Science for Ecosystem Challenges (ISEC), will
continue in F Y 2002. ReVA will combine modeled projections of changes in stresses (e.g., pollution
deposition, land use change) with information on sensitive ecosystems in order to identify: 1) the
greatest environmental risks that are likely to arise in the next 5-25 years; and 2) where those risks
are likely to occur. ReVA will also integrate socio-economics into the analyses to identify factors
driving changes in environmental condition and to better communicate trade-offs associated with
alternative policy decisions.  Given that we will not protect every ecosystem, everywhere, at all
times, examining resources and their vulnerability at this larger scale will greatly assist in identifying
ecologically important features of the region which merit special consideration by all managers
(local, regional, or national).

Risk Management and Restoration Research

       EPA's risk management and restoration research focuses on the options available to manage
the risks to and restoration of degraded ecosystems. The growth rate of the man-made environment
necessitates the development of cost-effective prevention, control, and remediation approaches for
sources of stressors and adaptation approaches for ecosystems. In addition to risk management
technologies,  it is also  important to invest in restoration.  These technologies will diagnose
ecosystem restoration needs, evaluate progress toward restoration, and establish ecologically relevant
goals and decision support systems for state and community planners. EPA is developing restoration
technologies which focus on: 1) rehabilitation, to the extent possible, of the structure of watershed
ecosystems (e.g., restoring a riparian zone); 2) reduction of the perceived stressors (e.g., cleaning
up  contaminated  sediments); and  3) enhancing  the  natural  resilience  of the system.  These
approaches are complementary and can often be used in concert with one another.  EPA will also
develop tools to assess the progress, effectiveness, and cost of candidate restoration technologies,
including the development of methods for evaluating negative or unexpected impacts of the
restoration technology.  This research will be incorporated into restoration protocols to allow more
uniform approaches to determining effectiveness and cost.
FY 2002 Change from FY 2001 Enacted

S&T

•      (+$2,346,300 and 15.8 FTE) Resources have been redirected from global and from the nearly
       completed Mid-Atlantic Integrated Assessment (MAIA) for higher priority research in
       support of the Environmental Monitoring and Assessment Program (EMAP). Research will
       focus on the effects  of excess nitrogen from atmospheric or other sources on aquatic
       ecosystems.  Research will involve the development of classification schemes as well as
       models that predict the loading-response relationships for nitrogen in aquatic habitats.
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HEM
      (+$1,482,500) This increase is  for  the  development  of national aquatic ecosystem
      classification systems and associated reference conditions. This research will focus on the
      development of functional, defensible classification schemes and associated reference
      conditions for use in the application of biocriteria to one or more of the following aquatic
      resources: wetlands, large rivers, ephemeral systems, reservoirs, lakes, streams, estuaries,
      near-shore coastal environments, and coral reef communities.

      (+$800,000) This increase will support continued research on deposition of nitrogen, along
      with other atmospheric stresses such as sulfur.  These will be monitored throughout the
      northeastern U.S. to determine the effects of acid deposition on streams, rivers and lakes.

      (+$398,700) This increase in research will support efforts to better understand the fate and
      transport of nutrients in the environment.  This work will address: a) the factors that affect
      nitrogen deposition, transport, and transformation, b) how terrestrial, freshwater, and coastal
      marine processes and communities change in response to changing nitrogen loads, c) the
      critical threshold loadings of nitrogen, and d) the spatial distribution of nitrogen across the
      components of a watershed.

      (+$1,623,800) This increase reflects an increase  in workforce costs.

      (-$972,900) This realignment of mercury research to Objective 8.3 (Emerging Priorities) will
      shift the focus of research from the effects of mercury in water to study mercury emissions,
      fate and transport, and deposition.

      (-$749,300 and 5.8 FTE) This redirection from the nearly completed Mid-Atlantic Integrated
      Assessment (MALA) will  fund high priority work in EMAP to study the effects of excess
      nitrogen on aquatic systems.

      (-$ 1,003,500) This reduction to lower priority research in PBT monitoring and measurement,
      exposure assessment models, and High Performance Computing  and Communications
      (HPCC) is primarily to offset the payroll cost of living and enrichment increases in support
      of the overall ecosystems protection research program.

      (-$6,800,400) The FY 2002 Request is $6,800,400 below the F Y 2001 Enacted budget level
      due to Congressional earmarks received during the FY 2001 appropriations process which
      are not included in the FY 2002 President's Request.
       (-$972,900) The FY 2002 Request is $972,900 below the F Y 2001 Enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.
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            Research

Estuarine Ecosystem Conditions

In 2001      Establish baseline conditions from which changes, and ultimately trends, in the ecological
            condition of  the Nation's estuaries can be confidently documented, and from which the
            results of environmental management policies can be evaluated at regional scales.

In 2000      EPA reported on monitoring findings in the Mid-Atlantic Region as a cost-effective means
            of measuring the condition of these systems by completing the products below and other
            research activities.

In 2000      EPA developed monitoring designs, including indicators, for streams in western watersheds
            by completing the products below and other research activities.

In 2000      EPA developed monitoring designs for National coastal monitoring by completing the
            products below and other research activities.

Performance Measures:                       FY 1999    FY2000    FY2001     FY2002
                                            Actuals     Actuals     Estimate    Request

A final report on the extent and magnitude of
fish tissue contamination in small, wadeable
streams in the Mid-Atlantic Region as means
of identifying high risk areas.                              1                                   final report

Draft design for a National coastal monitoring
program to assess the biological condition of
estuaries                                                 1                                   draft design

Final report on the relationship between
macroinvertebrate & periphyton assemblages &
chemical & physical stressors to verify the
applicability of these biological indicators
in the Mid-Atlantic.                                      1                                   report

Refined coastal health indicators developed
and applied in salt marsh estuaries and near
coastal water of the Gulf and South Atlantic.                28-Feb-2001                         indicators

Develop a final work plan for western stream
condition monitoring.                                     30-Sep-2000

Report describing the condition of the
Nation's Estuaries.                                                    1                       report

Baseline:    Currently, there is a patchwork of monitoring underway in the estuaries of the U.S. Due to
            differences in objectives, methods, monitoring designs and needs, these data cannot be
            combined to estimate, with known confidence, the magnitude or extent of improvement or
            degradation regionally or nationally in this economically critical resource. Therefore, it is
            also not possible to demonstrate the success or failure of increasingly flexible watershed
            management policies, regionally and nationally. By the end of 2001, the methods, designs


                                                VIII-14

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            and summary of existing attempts will be in place to develop the baseline required to address
            these weaknesses.

Integrated Ecosystem Modeling

In 2002     Produce a report on trends in acid deposition and the acidity of lakes and streams to assess
            progress toward reducing the impacts of acid rain.

In 2000     Publication of a conceptual model for developing watershed assessment techniques has been
            delayed until 12/31/02.

In 2000     EPA produced a final report on the relationship between land-use patterns and water quality
            in  watersheds  of the  Lake  Superior basin,  as  well as  a  draft implementation
            protocol/prototype approach for estimating sediment loadings.

Performance Measures:                       FY1999    FY2000    FY2001     FY2002
                                            Actuals     Actuals     Estimate     Request

Peer-reviewed draft TMDL Implementation
Protocol/Prototype approach for estimating
loadings of sediments to be used by OW,
Regions, Tribal Governments, and States
in implementation of CWA S.303.                          1                                   protocol

Release of multimedia wildlife exposure assessment
model which consists of a computer friendly system
to assess and integrate exposures of wildlife to env.
contaminants in soil,water,food,and air model               31 -Dec-2002

Develop expanded  guidance for performing an
ecological risk assessment; conduct a series of
colloquia and a workshop on ecological assessment
issues                                                  30-Sep-2001                        guidance

Final report on relationships between wetland
extent and land-use patterns with stream water
quality and biotic communities  in watersheds of
the Lake Superior basin.                                   1                                   report

Trends in acidity in lakes and streams in the
NE and Mid Atlantic Regions of the U.S.                                           1           report

Baseline:    In response to the Glean Air Act amendments, actions were taken to reduce the causes of acid
            deposition and aid in the recovery of lakes and streams affected by this deposition. Our
            understanding of  the expected rate and degree of recovery has been primarily based on
            results of similar actions in northern Europe. Research is being conducted to evaluate the
            status of acidic lakes and streams in the northeastern United States, a region sensitive to and
            impacted by acid  deposition, to evaluate the degree to which the actions taken have been
            effective. This research focuses on measuring the end result of controls in place and will
            provide insights into whether additional controls are needed.
                                                VIII-15

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Regional Scale Ecosystem Assessment Methods

In 2002     Assess the condition, vulnerability, and restoration potential of streams and their watersheds
            in the Mid-Atlantic.

In 2001     Develop methods for regional scale, comparative risk/vulnerability assessment using the
            Mid-Atlantic Region as a case study.
Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
Final report and data base on landscape change
in the Mid-Atlantic states between the early
1970s and the early  1990s, based on remotely
sensed monitoring data, and the consequences
for water quality

Estimating Vulnerability of Streams and
Ground Water to Sediments, Nutrients, Pesticides,
and Toxic Substances: Applying Landscape
Assessment Tools to the Mid Atlantic Coastal
Plain.

Develop a probability-based methodology for
conducting regional aquatic ecosystem
exposure and vulnerability assessment, for
pesticides.

Submit manuscripts for peer-review
publication on:  The Spatial Distribution and
Trend Analysis of Sulfur and Nitrogen
Deposition in the  Eastern United States.

Report on the use of conceptual models for
conducting large spatial scale assessments
based on the principles of the ecological risk
assessment guidelines.

Report on the condition of streams in the
Mid-Atlantic region.
                                    report.database
                                    journal article
                                    methodology
                        09/30/01
                                    publication
                                                report
                                     1
                                    report
Baseline:    Despite years of monitoring, effects research, and ecological modeling, flexible approaches
            have not yet been developed to assess the regional impacts of multiple stresses on multiple
            resources such that risk management activities can be prioritized. Methods are needed to
            evaluate and compare the condition of ecosystems and their risk of future degradation while
            assessing the role of individual stresses. New techniques to synthesize existing condition
            data, including but not  limited to that provided by the Environmental Monitoring and
            Assessment Program (EMAP), with modeled estimates of future stressor distributions are
            needed. Application of such techniques in a demonstration to be completed in FY 02 for the
            Mid-Atlantic Region will allow the identification of ecosystems at greatestrisk, stressors that
                                                 VIII-16

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          have the greatest impact on valued resources, and watersheds where restoration efforts may
          afford the greatest benefits.
Verification and Validation of Performance Measures

Performance Measure: Report on trends in acidity in lakes and streams in the NE and Mid
Atlantic Regions of the U.S.

Performance Database: Not applicable. This performance measure relates to an EPA scientific
or technical product which is not tracked in an environmental database.

Data Source: Agency generated material

QA/QC Procedures: N/A

Data Quality Reviews: As required by the Agency-wide formal peer review policy issued in 1993,
and reaffirmed in 1994 and 1998, all major scientific and technical work products used in Agency
decision making are independently peer reviewed before their use. EPA has implemented a rigorous
process of peer review for both its in-house and extramural research programs. Peer review panels
include scientists and engineers from academia, industry, and other federal agencies.

Data Limitations: N/A

New/Improved Data or Systems: N/A


Coordination with Other Agencies

       Research in ecosystems protection is coordinated Government-wide through the Committee
on Environment and Natural Resources (CENR).  It is the unique mission of EPA to go beyond
resource management assigned to other agencies like NOAA's National Marine Fisheries Service,
USDA's Forest Service, and DOI's Fish and Wildlife Service and Bureau of Land Management, and
to protect the whole environment, accounting for both public and private sources  of adverse
ecological effects. EPA has been an active participant in the CENR, and all work .in this objective
is fully consistent and complementary with other Committee member activities.

       EPA researchers work within the CENR on EMAP and other ecosystems protection research.
The Mid-Atlantic Landscape Atlas was developed in cooperation with  NOAA, USFW, the
University of Tennessee, and the U.S.  Department of Energy's (DQE's) Oak Ridge National
Laboratory.  Development of the Multimedia Integrated Modeling System is coordinated with the
Army Corps of Engineers (USAGE), USD A, and DOE. EPA participates in the Integrated Sciences
for Ecosystem Challenges initiative formulated by CENR's Subcommittee on Ecological Systems,
                                       VIII-17

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where the Agency participates in restoration of habitats and species, impacts of landscape change,
invasive species, and inventory and monitoring programs.

      EPA also participates in the interagency Water and Watersheds research grants program.
This program is co-sponsored by EPA, the National Science Foundation, and tJSDA. Integrating
the physical, biological and social sciences, this research is focused on developing watershed
assessment and restoration approaches and decision tools that will assist resource managers in
making decisions based on  sound science.  Additional interagency grants programs in Ecology
include: the Coastal Index  Sites Network (CISNet) co-sponsored with NOAA and NASA; the
Ecology and Oceanography of Harmful Algal Blooms (EcoHAB) program with NOAA, NSF, DOD,
and NASA; nutrient science for watershed management with USD A; and Estuarine and Great Lakes
(EAGLES) program with NASA.
Statutory Authorities

Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
Toxic Substances Control Act
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)
Resource Conservation and Recovery Act (RCRA)
The Clean Air Act Amendment
The Safe Drinking Water Act
Pollution Prevention Act (PPA) (42 0.S.C. 13101-13109)
Clean Water Act (CWA) Title I (33 U.S.C 1251-1271)
                                      VIII-18

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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

          Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems


Objective #2; Improve Scientific Basis to Manage Environmental Hazards and Exposures.

       Improve the scientific basis to identify, characterize, assess, and manage environmental
hazards and exposures that pose the greatest health risks to the American public by developing
models and methodologies to integrate information about exposures and effects from multiple
pathways. This effort includes focusing on risks faced by susceptible populations, such as people
differentiated by life stage (e.g., children and the'elderly) and ethnic/cultural background.
                                   Resource Summary
                                  (Dollars in thousands)
                                         FY 1999
                                         Enacted
           FY2000
            Actual
           FY 2001
           Enacted
       FY2002
       Request
Improve Scientific Basis to Manage
Environmental Hazards and Exposures.

    Environmental Program & Management

    Science & Technology

       Total Workyears
$49,902.0
$40,335.5     $55,349.0
                                     Key Programs
                                  (Dollars in thousands)
                                            FY1999
                                            Enacted
             FY2000
             Enacted
            FY2001
            Enacted
         $55,388.0
   $18.8      $3,482.4      $3,941.9      $4,114.5

$49,883.2     $36,853.1     $51,407.1     $51,273.5

   225.5         166.3        176.8         174.3
        FY 2002
        Request
Endocrine Disrupter Research

Human Health Research

Rent, Utilities and Security

Administrative Services
       $0.0
    $379.3
$366.9
$366.3
   $49,652.2     $48,883.9     $50,940.4     $50,807.2

       $0.0      $3,860.3      $3,370.9     $3,631-3

       $0.0       $606.1   ,    $529.1       $435.3
                                         VIII-19

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FY 2002 Request

       During much of its history, EPA has focused its human health risk management decisions
and regulations on single environmental pathways and individual contaminants. Often, this approach
has been mandated by environmental legislation.  In recent years, advances in the  state of
environmental science have illustrated that new risk assessment methods are needed to investigate
complex environmental and human health issues that were not contemplated by early environmental
legislation. These advances illustrate the significance of new risk management options for EPA.

       Creating  a  strong scientific foundation  for risk assessment and  for subsequent risk
management decisions requires research to reduce significant areas of scientific uncertainty and to
develop the methods, models, and data needed to support EPA's scientific and regulatory programs.
EPA's "Human Health Risk Assessment Research Strategy," which is currently in draft, outlines the
approaches the Agency will use over the next 5-10 years to provide the science and scientific
leadership needed to characterize and enable the prevention and reduction of environmental risks to
public health.  The general approach of the draft strategy is to conduct research needed to address
complex environmental issues, i.e., harmonization of cancer and non-cancer risk assessment,
aggregate toxicity and cumulative risk, and the evaluation of health-driven regulatory decisions.

       In FY 2002, human health research will be undertaken in three key areas of activity: 1)
development  of  multimedia/multipathway exposure methods and  models; 2) development of
mechanistically-based data, tools, and approaches; and 3) susceptible subpopulations.  Following
is a detailed discussion of the FY 2002 program in terms of these three activity areas.

Multimedia/multipathway exposure methods  and models

       EPA is committed to developing models to assess, predict, and diagnose the population
distribution of multimedia/multipathway exposures to major classes of environmental agents.  A
number of exposure-related activities will be undertaken in achieving this objective. They have been
chosen to address substantial uncertainties that exist in human health risk assessment and, thereby,
improve the scientific basis for assessing and managing risks. They include: 1) human exposure
measurement research; 2) research on mixtures and cumulative and aggregate exposure; and 3)
National Human Exposure Assessment Survey (NHEXAS) data analysis. This research seeks to
improve the core science in these areas by focusing on multimedia/multipathway exposures to
pesticides and other consumer products and major exposure venues.

       In FY 2002, human exposure measurement research will continue to develop, demonstrate,
and evaluate human exposure measurement and surveillance investigations along the U. S. - Mexican
Border in conjunction with the Border XXI (NAFTA) program. Areas of emphasis for the Border
program in F Y 2002 will include: 1) exposure and epidemiological studies that investigate children's
exposure to pesticides; 2) studies which investigate the potential for differential exposures which
may be related to contaminants from agricultural pesticide application and other activities along the
border; and 3) an investigation of population exposure in Arizona in communities along the border.
During  FY 2002, a report  will be published on the results of pesticide exposure and health
measurement screening for a pediatric cohort along the border.

                                        VIII-20

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       In F Y 2002, EPA will continue to develop measurements and measurement-derived models
that represent aggregate exposure and source-exposure-dose relationships for contaminant mixtures
to which the general population and children are exposed to daily. Research will continue to focus
on human multi-pathway exposure modeling, including developing the modules/models that describe
multi-media, multi-pathway human exposure, incorporating human activity patterns and measured
or modeled distributions of exposure concentrations.  These modules are key devices for linking
environmental concentrations with human actions to estimate the actual exposures. Another focus
will be on human exposure-to-dose modeling, including developing state-of-the-art exposure-dose
mathematical models to describe the uptake of pollutants into the body and the  distribution of the
pollutants throughout the body. These human exposure-to-dose models provide the essential linkage
between regional environmental or micro-environment toxicant models and dose-response models
designed by toxicologists.

       Research on mixtures, cumulative, and aggregate exposures will continue  to provide
methodologies, prototypical assessments and guidance for risk assessors on the use of information
on multiple sources, multiple chemicals and stressors, multiple routes and pathways, and multiple
time frames and durations of exposure.

       In F Y 2002, the Agency will continue to implement the strategy, which was recommended
and reviewed by the Science Advisory Board (SAB) for analyses of the NHEXAS data. Building
on basic analyses initiated in FY 2001, research  will focus on statistical  analyses  to identify
predictors of exposure, including residential sources and activity patterns, and on  the  use of
measurements in multiple media to evaluate and refine current exposure models.

       Finally, the  Agency will begin efforts to  develop  methods  and  approaches, including
monitoring, to enable the Agency to define and demonstrate measures of success to determine
whether the intended benefits in protecting public health are/were realized.  Research in F Y 2002
will include determining the state of the science to address this issue.

       The results from the application of methods, models, measurements, and data developed
under this research program will significantly improve our understanding of the extent of human
exposure to specific pesticides and toxic substances. Methods resulting from this research will be
incorporated into the Agency's battery of testing guidelines.

Mechanistically-based Data, Tools, and Approaches

        The Agency faces limitations in its ability to assess potential health risks of environmental
exposures both  qualitatively and  quantitatively because of a lack of understanding about the
underlying biological, chemical, and physical processes that determine target tissue exposures and
effects. Without sufficient knowledge of these processes, uncertainties are introduced into the risk
assessment process that may allow for wide interpretation of what is often limited data. Research
in this objective addresses both qualitative (hazard identification) and quantitative (dose-response
analysis) concerns associated with current risk assessments.
                                        VIII-21

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       Under this research program, EPA is committed to reducing reliance on methodologies that
rely on default assumptions by providing mechanistically-based data, tools and approaches for more
quantitative and biologically defensible human health risk assessments.  EPA will achieve this
objective through sustained research aimed at reducing reduce significant uncertainties in EPA's
ability to identify and characterize health hazards, and then to quantify, model and assess exposure-
dose-response relationships. In FY 2002, research will focus on harmonizing cancer and non-cancer
risk assessments.

       More specifically, health effects research will continue to focus on mechanistically-based
risks and development of fundamental tools, such as biomarkers of effect and susceptibility, to
address risks posed by cumulative and aggregate exposures, exposure to chemical mixtures and risks
to susceptible populations (such as the elderly, children or persons predisposed to  disease).  The
Agency will develop methods to identify the critical physiologic and mechanistic factors that
contribute to health effects in laboratory animals and humans. Research to determine the effects of
varying route, dose, dose-rate, duration and cumulative  dose on health outcomes will be used to
develop mechanistically-based models. Mechanism-of-action information will improve confidence
in the qualitative assessment of hazard and also shed light on the cascade of events linking exposure
and disease, consequently improving our ability to perform more biologically-based dose-response
estimates.

       Risk assessment research will focus on providing methodologies, prototypical assessments,
and guidance for risk assessors on the use of information on:  1) common levels of "response" for risk
assessment; 2) common dose metrics for  risk assessment; and 3) framework and  guidelines for
harmonized and integrated risk assessments.

Susceptible Subpopulations

       EPA is committed to developing and verifying innovative methods and models for assessing
the susceptibilities of populations to environmental agents and enhancing current risk assessment
and management strategies and guidance.

        The Agency will  support research on individual  variability in susceptibility. In FY 2002,
one area of emphasis will be mechanistically-based risk assessment methods for genotoxic effects.
Efforts will also focus on developing methods for assessing cumulative risks.

       Risk assessment research will continue to provide methodologies, prototypical assessments
and guidance for risk assessors for using information on biological  susceptibility, exposure
variability, methodologic variability, and stochastic processes.

       In 1997, in response to  the heightened  awareness and concern  about  the unique
susceptibilities of infants  and children, EPA established the Children's Health Research Program:

       Much of the effort under the Children's Health Research Program in FY 2002 is based on
the EPA Strategy for Research on Environmental Risks to  Children, which provides direction for
research in age-related exposures, physiology, and biological responses that may result in increased

                                         VIII-22

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risks, and research in risk reduction methods.  This research provides the scientific underpinnings
that will result in better EPA risk assessments for children and ultimately reduced risks from
potential environmental health threats. In FY 2002, EPA's children's health will maintain a strong
research program to provide the data to strengthen Agency risk assessments for children.

       EPA began to address environment-related childhood diseases in 1998 by establishing, in
cooperation with the National Institute of Environmental Health Sciences (NIEHS), eight university-
based pediatric environmental research centers.  Their aim is to better understand the causes of
environmentally-induced disease among children and to eventually decrease the prevalence of
childhood disease. Their efforts are focused on children's childhood asthma and other respiratory
disease, growth and development, and children's exposure and susceptibility to pesticides.  The
Centers are also investigating community-based  risk reduction  methods to  lower children's
exposures to environmental agents and improve their health outcomes. The Agency enhanced these
efforts by establishing a ninth pediatric center to study developmental disorders.  These children's
centers will continue their efforts in FY 2002.

       The Agency will continue to support extramural and in-house children's research through a
variety of other on-going efforts. For example, a program of mechanism-of-action experimentation
aims to facilitate the extrapolation of animal and experimental model data to humans, enhancing
ability to predict and study adverse effects in humans. Broadly applicable physiologically based
pharmacokinetic (PBPK) models and biologically based dose-response (BBDR) models will be
developed  to produce more  accurate risk assessments  for children,  making  full use  of
pharmacokinetic and mode-of-action data.

       The Agency is participating ina Federal Consortium established by the National Institute for
Child Health and Human Development (NICHHD), which includes the Centers for Disease Control
(CDC) and Prevention, in the design of a national longitudinal study of environmental influences on
children's  health and development,  authorized by the Children's Health Act of 2000.  The
prospective study would enroll 100,000 or more pregnant women before their child's birth and study
the newborn infants to adulthood. The Act requires that the study incorporate various aspects of a
child's exposures to assess the physical, chemical, biological, and psychosocial environmental
influences on children's well-being.   The  Act also  requires  that  the  study gather data  on
environmental influences and outcomes on diverse populations of children.  Data on outcomes
would be collected during pregnancy, infancy, childhood, and beyond. The Agency will continue
methods development work for the national longitudinal study in F Y 2002, focusing on methods for
collecting exposure data, for assessing effects in infants and young children, and for recruitment and
retention of study candidates.

       The Agency will continue work on developing broadly applicable methods for removing
chemicals from residential environments and for preventing exposure in the residential environment
where children are most likely to be exposed.

       Because of the rising rate of asthma in the United States, especially among children, and the
scientific uncertainty as to why asthma rates are increasing, the Agency has developed an asthma
research strategy, which we will implement in 2001. EPA will conduct research to understand the

                                        VIII-23

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impact of environmental agents and factors on the induction and exacerbation of asthma. The
Agency is proposing to accomplish some of the asthma research through the Longitudinal Birth
Cohort Study described above.

       To address evidence suggesting that the effects of endocrine disrupting chemicals (EDCs)
exposure in children could be different from those experienced by adults, research will continue to
support the development of methods to evaluate hazards in immature organisms exposed to EDCs
that are quantitatively or qualitatively different from those observed in adults. Also, the Agency will
continue to support  research to develop test procedures and create market  incentives for the
manufacture and use of products, including water-based cleaners, that result in improved indoor air
quality. This research will provide the scientific basis to upgrade guidance to schools.
FY 2002 Change from FY 2001 Enacted

S&T

•      (+$771,500) This increase reflects an increase in workforce costs.

*      (-$1,080,000)  Fundamental  health effects  research  (e.g.,  biomarkers  of  effect  and
       susceptibility to address risks posed by cumulative and aggregate exposures) and efforts in
       support of the NHEXAS program have been reduced in order to fund additonal mercury
       research in Objective 8.3.

           Research

Human Health Risk Assessment Research

In 2002     Produce a framework with supporting models and analyses to better link human exposure
           measurements and health effects outcomes and address complex, high priority risk issues
           including  aggregate/cumulative risk, high  to low dose extrapolation, and susceptable
           populations.

In 2001     Implement completed Human Health Risk Assessment Research Strategy focusing on
           research to improve extrapolation, cumulative and aggregate risks, mixtures, susceptible
           populations, harmonization of cancer and non-cancer risk assessments, and evaluating the
           effectiveness of public health decisions.

In 2000     Reports on the use of mechanistic data in  developmental toxicity risk assesssment and
           assessments of pesticide exposures to children were published. The Exposure Factors
           Handbook was delayed due to an extension of the public comment period, and will be
           released in FY 2001.

Performance Measures:                     FY 1999   FY2000    FY2001    FY2002
                                        Actuals     Actuals     Estimate    Request

Assess pesticide exposures to children in
Washington, Minnesota, and Arizona.                   1                                assessment
                                           VIII-24

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Report on the use of mechanistic data in
developmental toxicity risk assesssment.                    1                                  report

Develop Exposure Factors Handbook
for children                                              0           1                       Handbook

Publish peer reviewed research strategy on
human health risk assessment.                                         1                       resrch strategy

NHEXAS: Begin implementation of Strategic
Data Analysis Plan.                                                   1                       strategic plan

Develop a prototype source-to-exposure-to-
dose modeling framework that enables the
complex computation for human exposure
modeling.                                                                       1           model assessmen

Analysis and report on factors for children's
exposure to pesticides that may lead to high-level,
short-term exposure to pesticides.                                                  1           report

Advance the human exposure and dose model by
improving the modules for dermal and dietary
exposure.                                                                       2           modules

Framework for conducting risk assessments for
children as a sensitive subpopulation.                                               1           framework

Report on the Contribution of Genetic Polymorphisms
of Metabolic Pathways to Susceptibility and
Population Variance.                                                             1           report

Report on health effects associated with
exposures to indoor and outdoor pollutants
using NHANES health effects data and EPA
monitoring data.                                                                 1           report

Baseline:    As EPA has successfully addressed the most apparent environmental problems, research is
            now needed to address increasingly complex issues.  Significant uncertainty surrounds
            assessing the risks  associated with multi-pathway exposure to a pollutant or class of
            pollutants (aggregate risk), or  from multiple pollutants via multiple pathways (cumulative
            risks).   It is also critical  to identify the subgroups in our populations for which these
            exposures pose the greatest risks. These issues will be addressed through research to identify
            and quantify the fundamental mechanisms that impacthuman exposures, the resulting "dose"
            that the individual receives and the attendant health risks.  As an important step forward, an
            integrated program linking  exposure, dose and effects will be undertaken for two areas,
            namely, susceptible populations and aggregate/cumulative risk. Establishing these predictive
            linkages will lead to more scientifically defensible Agency risk assessments.

Exposures and Effect of Environmental Research

In 2002     Complete planning and initiate proof of concept projects(s)  to  develop methods and
            approaches that will more directly evaluate the public health outcomes of environmental
                                                VIII-25

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           decision-making  relative to  the  more traditional  surrogates  such  as  increased
           compliance/decreased emissions.

In 2001     Develop initial measurements, methods and models to evaluate exposures and effects of
           environmental contaminants, particularly in children.

In 2000     EPA developed initial measurements, methods, and models to evaluate exposures and effects
           of environmental contaminants, particularly in children, by completing the products listed
           below and other research activities.
Performance Measures:
FY1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
Develop and validate first phase models using
mechanistic data to predict toxicity for two
noncancer endpoints following less-than-lifetime
exposures to environmental contaminants.

Develop first generation multimedia and
multipathway exposure models for infants,
children, and the general population.

Guidance on improving PK model usage
for children.

Deliver a strategy to guide EPA's research on
methods for measuring improvements in human
health, informing decision makers and the
public of environmental progress.
                                             report
                                             model
                                             guidance
                                  1
                                  rsch. strategy
Baseline:    Just as the environmental issues that the Agency must address have gotten more complex, so
           have the solutions.  The decisions leading  to further,  incremental  improvements in
           environmental conditions may have substantial costs, and as such, can benefit from data
           reflecting the improvements in public health resulting from such decisions. One element of
           the Human Health Risk Assessment Research program will be directed at conducting
           research, in partnership with other agencies, to develop  and validate methods and
           measurements that can assess changes accompanying the implementation of environmental
           decisions.  In keeping with GPRA, the goal is to eventually have a set of true "outcome"
           indicators to assess the success of regulatory decisions and practices.
Coordination with Other Federal Agencies

        Several Federal agencies sponsor research on variability and susceptibility in risks from
exposure to environmental contaminants.  NIEHS achieves its mission through a multidisciplinary
biomedical research program, prevention and intervention efforts, and cornmunicalion strategies that
encompass training,  education, technology transfer,  and  community outreach.   In  1998, in
collaboration with NIEHS, EPA established eight Centers for Children's Environmental Health and
Disease Prevention to define the environmental influences on asthma and other respiratory diseases,
childhood learning, and growth and development.  Also, with the NIH/NICHHD and CDC, the
Agency is part of the consortium of Federal agencies that are planning, developing and implementing
the national longitudinal study.
                                             VIII-26

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      The Agency continues to work on interagency task forces with a number of federal agencies,
including NIOSH, NIEHS, FDA, and CPSC, in developing health risk assessment guidelines (e.g.,
Carcinogen Risk Assessment Guidelines, Developmental Toxicity Guidelines, Exposure Assessment
Guidelines) and has maintained interagency agreements with NIOSH  and NIEHS (e.g., the
Children's Health Centers),
Statutory Authority

Clean Air Act (CAA)
Safe Drinking Water Act (SDWA)
Clean Water Act (CWA) '
Toxics Substances Control Act (TSCA)
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
Resources Conservation and Recovery Act (RCRA)
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Superfund Amendments Reauthorization Act (SARA)
Food Quality Protection Act (FQPA)
                                      V1II-27

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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

          Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems
 Objective #3:  Enhance Capabilities to Respond to Future Environmental Developments

       Enhance EPA's capabilities to anticipate, understand, and respond to future environmental
development and conduct  research in  areas that  combine  human  health  and  ecological
considerations.

                                   Resource Summary
                                   (Dollars in thousands)
                                         FY1999
                                         Enacted
           FY2000
           Actual
        FY2001
        Enacted
         FY2002
         Request
Enhance Capabilities to Respond to Future
Environmental Developments.

    Environmental Program & Management

    Science & Technology

       Total Workyears
$54,935.7      $45,565.6     $57,719.7     $55,848.2


 $7,216.1       $7,733.5      $7,789.5      $8,298.0

$47,719.6      $37,832.1     $49,930.2     $47,550.2

   192.2         144.9         164.4         155.6
                                      Key Programs
                                   (Dollars in thousands)

                                            FY1999     FY2000
                                            Enacted     Enacted
                         FY 2001
                         Enacted
                     FY 2002
                     Request
Reinvention Propams, Development and
Coordination

Endocrine Disrupter Research

Exploratory Grants Program

STAR Fellowships Program

Rent, Utilities and Security

Administrative Services
    $6,596.1
$7,046.3
$6,518.3
$7,055.0
$12,098.4
$12,038.0
$8,941.0
$0,0
$0.0
$7,658.7
$10,803.5
$8,952.6
$396.8
$454.2
$12,482.5
$10,368.5
$9,704.3
$371.4
$560.5
$10,955.1
$10,290.0
$9,708.4
$397.0
$464.4
                                         VIII-28

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FY 2002 Request

       In recent years, EPA has begun moving beyond environmental regulation to environmental
protection, including anticipating and preventing potential problems before they develop into major
concerns. Research conducted under this obj ective endeavor to develop common methodologies for
combined human health and ecological risk assessments and sound approaches for risk management
that provide decision-makers at all levels with the integrated view of risk needed to make sound
decisions.

Endocrine Disruptors

       Evidence has been accumulating that  humans and animals,  both domestic and wildlife
species, have suffered adverse health consequences resulting from exposure to EDCs. Reports of
declines in  the quality and quantity of human sperm production over the last four decades, and
increases in certain cancers that may have an endocrine-related basis  (breast, prostate, testicular),
have led to speculation about environmental causes. Recognizing the potential scope of the problem,
the possibility of serious health effects on populations, and the persistence of some EDCs in the
environment,  EPA  published  a  "Research   Plan  for   Endocrine  Disruptors"
(www.epa.gov/QRD/WebPubs/flnan  in 1998.  In  FY 2002, endocrine disrupters research will
continue to focus on the priorities  established in the 1998 plan by developing  tools to identify
hazards and manage risks from exposure to EDCs. The research focuses on: 1) developing a better
understanding of the science;  2) determining  the extent of the  problem in human and wildlife
populations; and 3) supporting EPA's screening and testing program that is mandated under the Food
Quality Protection Act and Safe Drinking Water Act Amendments of 1996. As in the past, EDC-
related work will be organized along an integrated pathway of effects, exposure, risk assessment and
risk management research.

       Effects research is needed to  determine the nature and extent to which  environmentally
relevant exposures to EDCs are producing adverse effects in humans and wildlife species.  This
research will focus on: 1) evaluating the adequacy of current testing guidelines for the assessment
of EDCs; 2) identifying the classes and potencies of chemicals that may act as EDCs; 3) determining
the dose-response curves for EDCs at environmentally relevant concentrations; and 4) developing
tools to monitor the health of individuals inhabiting areas of EDC contamination.  Assessment
research will result in the development of an analytical framework for evaluating impacts of reported
EDC phenomena, and will focus on the following: 1) identifying key risk assessment issues for
endocrine disrupters; 2) providing methods for evaluating data on effects of EDCs on human health
and the environment; 3) developing a framework for assessing EDCs; and 4) developing guidance
for assessing EDCs.  The goal of the risk management research effort is to identify current EDC
releases that can be mitigated or eliminated by existing risk management tools and to develop new
tools to manage current and future EDC risks.
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Pharmaceutical and Personal Care Products (PPCPs)

       Pharmaceutical and Personal Care Products (PPCPs) represent a growing area of concern to
the scientific community.  PPCPs comprise very large, broad and diverse classes of often highly
bioactive and potentially endocrine disrupting chemicals. Large quantities of PPCPs can enter the
environment through a variety of ways, however, the occurrence, fate and effects (both ecological
and human) of PPCPs in the environment are poorly defined. Research will focus on conducting
initial risk assessments that will help chart the research focus; developing requisite analytical
methods for target analytes; initiating small-scale proof of concept and early warning environmental
monitoring; promoting scientific dialog at national and international levels; and communicating
knowledge to the public.

Mercury

       Mercury is released from a variety of sources, exhibits a complicated chemistry, and proceeds
via several different pathways to humans and wildlife.  The Mercury Study Report to  Congress
(1997) found that fish consumption dominates the pathway for human and wildlife exposure to
methylmercury. After release, mercury undergoes complicated transformations that can result in
highly toxic methylmercury., an organic form of mercury. Methylmercury bioaccumulates in fish and
animal tissue, and human exposure to methylmercury has been associated with serious neurological
and developmental effects. Because the developing nervous system is more vulnerable to mercury
toxicity, children exposed to methylmercury through their mother's  consumption of fish, and
individuals who eat large amounts offish from local waters, can be particularly at risk of adverse
effects.

        According to the EPA's Mercury Study Report to Congress (1997), mercury availability in
water,  soil, and other media has increased by a factor of two to  five over pre-industrial levels;
Mason, et.al., (1994) attribute this increase to human activities. Mercury may be released through
natural events and human activities, and it is being re-released continuously. Because it is persistent
and because of the risks of neurological and reproductive problems for humans and wildlife it is a
pollutant of considerable human health and envkonmental concern.  The presence of mercury in
freshwater fish higher in the food chain is the most frequent basis for fish advisories, represented in
70 percent of all water bodies with advisories in 1999. Forty-one states have advisories for mercury
in one or more water bodies, and eleven states have issued statewide mercury advisories.

       Several research  issues will continue to be  emphasized in FY 2002, including:  1) risk
management  for  combustion  sources;  2)  atmospheric,  aquatic, and terrestrial transport,
transformation, and fate of mercury; 3) ecological/environmental assessment of mercury; 4) source
characterization and inventorying from non-combustion sources; 5) mercury risk communication
strategies (especially to  sensitive populations);  and 6) disposal  of excess mercury stocks and
improved management of mercury wastes. A focus of the research conducted in FY 2002 will be
to provide a more accurate methods for quantifying mercury emissions resulting from manmade
sources to improve domestic and international estimates of mercury levels, and to assess the cost and
performance of control/prevention options for key sources of mercury. Increased emphasis will be

                                        VIII-30

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placed on research related to both atmospheric transport modeling and ecological assessment. One
particular focus of the mercury research in FY 2002 will be atmospheric transport, transformation,
and fate from source to deposition point. The research resulting from this grant work will contribute
to an improved understanding of mercury biogeochemical cycling—from release at a source to
transformation and uptake by ecosystems.

Socio-Economic Research

       Effective accomplishment of EPA's mission depends on understanding not only the physical
and biological effects of environmental changes, but also on the behavioral causes and consequences
of those changes.  The focus of socio-economic research at EPA is to develop a better basis for
making decisions using sound assessments of the human behavior that affects environmental
outcomes. Priority socio-economic research areas identified by EPA economists and outside experts
include: ecosystem and human health  benefits valuation and decision-making processes that
incorporate non-monetized benefits. Research conducted in F Y 2002 should enhance environmental
decision making by  improving our understanding of how people value the environment.  The
principal means for addressing these research areas will be a joint EPA/NSF sponsored competition,
which will encourage research to develop practical, credible approaches for estimating the benefits
and cost of environmental programs and improve decision-making on environmental issues.

Graduate Fellowships and Exploratory Grants

       A blue ribbon panel of the Science Advisory Board recommended in 1994 that EPA enhance
its environmental education programs for training the next generation of scientists and engineers,
and in 1995 the graduate fellowship program was initiated to meet that challenge. This competitive,
peer-reviewed program is designed to attract some of the brightest and most dedicated students in
the Nation for training in scientific and engineering disciplines pertaining to the protection of public
health and the environment. The goal of this program is to encourage these students to pursue
careers in environmental science and engineering - not  only with EPA, but with states, localities,
and  industry.  Research completed under the fellowship program helps resolve uncertainties
associated with particular environmental problems and focuses graduate research on priority research
areas. In F Y 2002, the Agency expects to support fellowships across multiple disciplines, including
the biological and physical sciences, mathematics, computer sciences, and engineering.

       In FY 2002, the Exploratory Grants research  program will publish an annual general
solicitation to  promote research in areas where significant gaps in the scientific knowledge and
understanding exist.  This program provides opportunities for individual investigators from the
academic research  community to conceive, define, and  propose research projects. Topics from a
broad variety of areas, such as environmental chemistry and physics, health and ecological effects
of pollution, can receive attention under the Exploratory Grants program.  The proposals are
competitively  reviewed by panels of predominantly non-EPA researchers, with only the most
scientifically sound proposals ultimately receiving support. The major program outputs are scientific
articles published in peer-reviewed literature; these publications are intended to enhance scientific
knowledge and understanding, and to be used as inputs into more targeted, applied environmental
research programs.

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      In addition to the developments in risk assessment, EPA will continue to improve the
economic information and methods available for use in the Agency's analyses.  In FY 2002, the
Agency will invest in new economic research and analyses to improve measures of the benefits and
costs of EPA programs. Economic valuation studies will be undertaken to quantify human health
and ecological benefits from air, water and waste management programs.  EPA will continue to
convene economic valuation of reduced risks to children,  use  of market-based approaches to
environmental management, the economics of emerging environmental policies (e.g. bioenergy and
genetically modified organisms), and the measurement of values from reduced mortality risks. EPA
will continue to analyze the environmental impacts from changes in economic markets associated
with new international trade policies and proposals. EPA will  continue to  engage the Science
Advisory Board on new research and analytical methods being considered by EPA to assess and
manage environmental risks.

FY 2002 Changes from FY 2001  Enacted

S&T
•     (+$342,400 and 9.0 FTEs) This realignment of dollars and workyears away from a primary
      focus on EDCs to support  efforts to research the exposure of humans and ecosystems to
      Pharmaceutical and Personal Care Products (PPCPs). PPCPs comprise very large, broad and
      diverse classes of often highly bioactive, and potentially endocrine disrupting, chemicals.
      Large  quantities of a wide spectrum of PPCPs and their metabolites can enter the
      environment through  a variety of ways.  However, the suspected risks resulting  from
      exposures to multiple  PPCPs by aquatic organisms and to humans have not been clearly
      documented. Research will focus on conducting initial risk assessments that will help chart
      the research focus; developing requisite analytical methods  for target analytes; initiating
      small-scale proof of concept and early warning environmental monitoring;  promoting
      scientific dialog at national and international  levels; and communicating knowledge to the
      public.

•     (+$2,016,400) This investment  in  mercury research represents both a realignment  of
      resources as well as a net increase in funds for mercury research. Roughly half of these funds
      come from existing mercury resources in Goal 8.1. The remaining increase is a result of
      redirections from health effects  research in^Goal 8.2,  Efforts in FY 2002 will support
      mercury  research in the area of atmospheric chemistry, specifically, mercury fate and
      transport. This work includes developing an enhanced scientific understanding of the
      chemical and physical forms of mercury emissions, as well as developing a more complete
      understanding of chemical and physical transformations of mercury in air and cloud water.

•     (+ $1,031,700) This realignment of socio-economic resources from Goal 8.4. into Goal 8.3
      will support research on the valuation of the environmental benefits of pollution control and
      on decision-making for environmental protection. Priority research areas include ecosystem
      and human health benefits valuation and decision-making processes that incorporate non-
      monetized benefits,. The principal means for addressing these research areas will be the joint
      EPA/NSF competition, which will encourage research that will develop practical, credible

                                        VIII-32

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EPM
       approaches for estimating the benefits and cost of environmental programs and improve
       decision-making on environmental issues.

       (-$927,500 and -5.4 FTEsXJhe Agency is reducing its intramural efforts in lower priority
       EDC programs. Work on EDCs exposure  studies, namely the ecological field exposure
       studies along the Neuse river, will be discontinued. Development and validation of new
       exposure methods and protocols for existing and emerging EDCs will be postponed.

       (-$842,400 and -9 FTEs) This reduction in resources is due to a realignment away from a
       primary focus on EDCs in order to directly focus on Pharmaceutical and Personal Care
       Products research.

       (-$4,3 77,800) The F Y 2002 request is $4,377,800 below the 2001 Enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.
       (+$579,000) The FY 2002 Requestis $579,000 above the FY 2001 Enacted budget level for
       increased payroll costs.
Research on Endocrine Disrupting Chemicals

In 2002     Develop tools to identify hazards and evaluate existing approaches to manage risks from
           exposure to endocrine disrupting chemicals (EDCs) capable of inducing adverse effects in
           humans and wildlife.

In 2001     Develop tools to identify and characterize hazards, conduct initial assessments, and formulate
           preliminary strategies to manage risks from exposure to endocrine disrupting chemicals
           capable of inducing adverse effects on humans and wildlife.

In 2000     Tools to identify hazards and  formulate strategies  to manage risks from exposure to
           endocrine disrupting chemicals were developed by completing the products listed below and
           other research activities.

In 1999     Completed a protocol for a field exposure study of children to two (2) endocrine disrupting
           chemicals (EDCs), which will help reduce uncertainties about actual exposure to EDCs.

Performance Measures:                    FY 1999    FY2000    FY2001    FY2002
                                       Actuals     Actuals     Estimate    Request

Produce workshop report on the EDSTAC
screening process for EDCs and determine
application of the EDSTAC testing program
for chemical hazard and risk assessment.                 1                  ,            report

Characterization of environmental agents
as risk factors in human prostate cancer.                  0                               characterization


                                            VIII-33

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Reports on endocrine and other effects in
exposed women and their offspring in a
cohort contaminated by PBBs.

Reports on the molecular mechanisms
underlying estrogen receptor functions
in ER knockout mice.

Development and refinement of test
methods for use in Tier 1 testing of
potential EDCs

Development of amphibian assay for use in
hazard identification.

Protocol for field exposure study of
children to 2 EDCs

Provide prototypical mechanism-based
methods for assessing the risk of
developmental and reproductive toxicants
using amphibian and small fish models.
Report on the int'l Org. of Economic Coop.
and Dvlpmnt (OECD) validation of the
Hershberger protocol to detect anti-androgens
in the EDSTAC Tier 1 screening battery.
                                               report
                                               report
                                               methods
                                               assay
30-Sep-1999
                                                        9/30/01
                                               methods
                                    1
report
Baseline:    In order to address uncertainties with regard to whether endocrine disrupting chemicals are
            having adverse impacts on wildlife and humans, EPA must increase its ability to detect their
            activity at various levels of biological organization, as well as across species.  As pointed
            out in EPA publications, as well as the most recent NAS report  on Hormonally Active
            Agents, there are large gaps in our current science regarding the nature, significance, and
            magnitude of the endocrine  disrupter issue. In the short term, EPA needs to develop and
            validate specific tests of endocrine activity to support implementation of the screening and
            testing requirements of the Food Quality Protection Act as recommended by the Agency
            advisory committee, EDSTAC.  EPA must also bring more focus to addressing questions of
            the risk assessment approaches to endocrine active compounds, especially in relationship to
            endogenous hormone levels, exposures to ambient levels of single and multiple endocrine
            disrupters, and the key life stages that are at greatest risk. In the longer term, EPA needs to
            identify the critical sources and fates of endocrine disrupters that are deemed to be of highest
            concern on the basis of their biological effects, and to develop technologies or approaches
            to mitigate those exposures.  Research  in FY02 will result in:  1) the  development of
            screening protocols to be implemented in EPA's screening and testing program, 2) improving
            our understanding of impacts of EDCs on wildlife and human populations, and 3) improving
            our understanding about the actions and potencies of certain EDCs.  The results of this
            research will lead to having better information on potential EDCs which in turn will result
            in improved Agency risk assessments and better informed decisions as to how to manage any
            unreasonable risks.                                              -
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Mercury Research

In 2002     Improve methods for quantifying mercury emissions from manmade sources to improve
           domestic and international estimates of mercury levels, and assess the cost and performance
           of control/prevention options for key sources, such as utility boilers.

In 2001     Provide recommendations both about revising, if needed, EPA's reference dose (RfD) for
           methylmercury and for managing risks from environmental exposures to mercury.

In 2000     The mercury research strategy was completed as scheduled and will act as a guide in the
           execution of an EPA-based mercury research program.
Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
Improve a mercury research plan to act as a
guide in the execution of an ORD-based mercury
research program.

Publish results of bench and pilot testing aimed at
identifying improved sorbents for mercury
mitigation from coal-fired utility boilers.

Make recommendations, as appropriate, for
revision of EPA's RfD for methylmercury
based on analysis of the National Academy of
Sciences report on mercury.

Report on the parameters that impact both
the species of mercury in coal-fired utility
boiler flue gas and the performance of
promising mercury control technologies.
                       9/30/01
                                             plan
                                             publication
                                  recommendations
                                  1
                                  report
Baseline:   EPA's Mercury Study Report to Congress identified emissions from coal-fired utilities as one
           of the most significant contributors of mercury to the air. On December 14, 2000, EPA
           determined that  mercury emissions from coal-fired  utilities needed to be regulated.
           Regulations are to be promulgated in three years and finalized a year after that.  The most
           cost-effective technological approaches for controlling mercury emissions from utilities are
           not well understood. Control technologies must be evaluated prior to regulation with a goal
           of minimizing mercury emissions at the lowest possible cost.  In order to advance the
           state-of-the-science on emission controls for mercury, the parameters that impact both the
           species of mercury in coal-fired utilities flue gas and the performance of promising mercury
           control technologies will be identified, investigated, and described by the end of 2002.
Coordination with Other Agencies

        The broad nature of the EDCs issue necessitates a coordinated effort on both the national and
international level. EPA has shown extensive leadership at both levels - chairing the Committee on
Environment and Natural Resources (CENR) interagency working group and chairing a Steering
Group on Endocrine Disrupters under the auspices of the International Programme on Chemical
Safety/World Health Organization/Organization for Economic  Cooperation and Development
                                              VIII-35

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(IPCS/WHO/OECD).  Due to the complex nature of the uncertainties posed by the endocrine
disrupter hypothesis, the overlapping concerns of federal agencies, and the resource constraints on
the federal budget, close coordination and cooperation among federal agencies are essential to the
resolution of critical research questions.   While the CENR provides  the umbrella for  this
coordination, individual agencies are responsible for the development of their own independent
research plans. Under EPA's leadership, an inventory of federal research on endocrine disruption
has been developed and is used to evaluate federal efforts, identify research gaps and establish
priorities, and clarify governmental roles and responsibilities (www.epa.gov/endocrine).

       Working with other nations, EPA has expanded the U.S. federal inventory to include projects
from Canada, Japan, and Europe and turned it into a Global Endocrine Disrupters Research
Inventory with close to 800 projects.  The IPCS/WHO/OECD  Steering Group on Endocrine
Disrupters is developing a "Global State-of-the-Science Review," scheduled for completion in 2002,
Both the inventory and the international assessment result from recommendations made at the 1997
G-8 Environmental Ministers'  Meeting.  In FY 2002, EPA will continue  to collaborate with
European countries under the  U.S.-EU Science and  Technology Agreement and with Japanese
scientists under the U.S.-Japan Science and Technology Agreement.

       EPA is in a unique position to focus federal pollution prevention efforts in the critical area
of mercury research.  Progress has been made in organizing the concepts and ideals of pollution
prevention in the private sector, but much work remains. The Agency, through partnerships with
private sector companies, non-profits, other Federal agencies (such as the as Department of Energy),
universities and states, including California EPA, has worked to identify and control human exposure
to methylmercury.

       For socio-economics, EPA will continue to support jointly sponsored economic workshops
with other  regulatory agencies, such as efforts with  the Food  and Drag  Administration and
Department of Agriculture, to address the  economic valuation of human health effects. These
workshops on economics and environmental policy will continue to draw upon EPA's sponsored
economic research, facilitating information exchanges among academic and federal regulatory
agency representatives.
Statutory Authorities

Clean Air Act (CAA) and amendments
Environmental Research, Development and Demonstration Act (ERDDA)
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
Toxic Substances Control Act (TSCA)
Food Quality Protection Act (FQPA) of 1996
Safe Drinking Water Act (SDWA) and amendments
TSCA sections 4,5, and 6 (1$ U.S.C. 2603,2604, and 2605)
CWA sections 304 and 308 (33 U.S.C. 1312,1314,1318,1329-1330,1443)
SDWA section 1412 (42 U.S.C. 210,300g-l)
RCRA/HSWA: (33 U.S.C. 40(IV)(2761), 42 U.S.C. 82(VIII)(6981-6983))

                                        VIII-36

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CAA: 42 U.S.C. 85(I)(A)(7403, 7412,7429,7545, 7612)
CERCLA: 42 U.S.C. 103(III)(9651)
PPA (42 U.S.C. 13101-13109)
Federal Technology Transfer Act
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                          Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

          Sound Science, Improved Understanding of Environmental Risk, and
                Greater Innovation to Address Environmental Problems


Objective # 4: Improve Environmental Systems Management.

      Provide tools and technologies to improve environmental systems management while
continuing to prevent and control pollution and reduce human health and ecological risks originating
from multiple economic sectors.

                                Resource Summary
                                (Dollars in thousands)
FY 1999 FY 2000
Enacted Actual
Improve Environmental Systems
Management.
Environmental Program & Management
Science & Technology
Hazardous Substance Superrund
Total Workyears
$68^85.2
$877.7
$67,507.5
$0.0
169.3
$63,784.4
$4,052.0
$59,732.4
$0.0
162.7
FY 2001
Enacted
$58,562.1
$7,291.5
$51,270.6
$0.0
168.7
FY2002
Request
$45,462.3
$4,524.6
$40,514.2
$423.5
160.8
Key Programs
(Dollars in thousands)

Common Sense Initiative
Environmental Technology Verification (ETV)
Pollution Prevention Tools and Technologies
Rent, Utilities and Security
Administrative Services
FY 1999
Enacted
$867.0
$6,908.5
$30,509.5
$0.0
$0.0
FY 2000
Enacted
$630.4
$6,392.6
$27,442.0
$4,001.1
$839.0 .
FY 2001
Enacted
$0.0
$6,294.0
$24,386.7
$3,204.5
$965.0
FY 2002
Request
$0.0
$3,619.6
$21,890.0
$3,337.8
$948.5
                                      VIII-38

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FY 2002 Request

       In FY 2002, the Agency will continue to move from one-dimensional solutions involving a
single medium/single pollutant to an integrated, systems-based approach to pollution prevention that
more closely matches  the multiple,  interactive stressors  that may threaten both human and
environmental health.  This  approach will enable a cumulative assessment of risks and more
effective responses to those risks. EPA will accomplish its holistic approach to pollution prevention
through  research on pollution  prevention  tools  and technologies, environmental  systems
management, and environmental technology verification.

       The first component of this Objective features the development of tools and methodologies
to assist decision-makers in choosing the most preferred pollution prevention options. The types of
research to be conducted include:  (1) improving life cycle assessment tools (tools that address the
environmental consequences of a product throughout its life span); (2) creating and enhancing tools
for the reduction and assessment of chemical impacts and for measuring pollution prevention
progress; (3) developing and enhancing computerized databases on less-polluting alternatives; and
(4) creating computerized decision tools for process simulation and chemical replacements. The
Agency will focus on developing methodologies and computerized tools applicable both within and
beyond the industrial sector (e.g.,  municipal, agriculture, energy, ecosystems).

       Green chemistry, a fundamental approach to preventing pollution at the source, involves the
design  of chemicals and alternative chemical syntheses that do not use toxic feedstock, reagents, or
solvents, and do not produce toxic by-products or co-products. Research in this area will contribute
to the development of safer commercial substances and environmentally friendly chemical syntheses.
Likewise, novel engineering approaches  will be employed to prevent or reduce pollution from
discrete and continuous industrial manufacturing activities.  The program  will also  focus on
equipment and technology modifications, bioengineering, reformulation of products, substitution of
alternative materials, and in-process changes in order to reduce harmful emissions from volatile
organic compounds  (VOCs), global warming compounds, and persistent bioaccumulative toxics
(PBTs).

       The Agency will additionally support PBT prevention and minimization and when possible,
elimination by improving methods for identification and testing of PBTs. Four focus areas of this
work have been identified by EPA: (1) research on dioxins/furans; (2) development of a national
routine PBT monitoring strategy; (3) supplementing mercury  retirement  research; and (4)
understanding the presence of persistent organic pollutants in the United States. By concentrating
on these areas, EPA intends to advance the understanding of exposure, assessment, and management
of PBTs while simultaneously working toward prevention of exposure from PBTs.

       In light of the recognition that adoption of pollution prevention alternatives often hinges on
cost  effectiveness criteria, FY 2002  will feature cost and  market-related analyses of pollution
prevention tools and technologies. Research will explore the costs of mechanisms and incentives

                                        VIII-39

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for environmental management while seeking to understand the economic impacts of innovation,
competitiveness, and trade. Research will also evaluate the relationship between market forces and
incentives for environmental compliance.

       In FY 2002, environmental systems management research will address the development of
principles governing sustainable systems, the integration of many disciplines into one comprehensive
set of tools, and the development of principles for using biotechnological systems in a sustainable
manner.  These new capabilities must lead to an evolution in environmental management that will
not only support development, social  equity, and environmental  quality,  but will  expand
environmental stewardship by industry, governments, and citizens.

       The final component of this program, the Environmental Technology Verification (ETV)
Program, focuses on all areas of environmental technology and is a market-grounded verification
program, working  with over 850 stakeholders who  represent vast  points  of view within
environmental areas. The goal of ETV is to verify the performance characteristics of private-sector-
developed cleaner technologies so that purchasers, users, and permit writers have the information
they need to make environmentally-beneficial decisions. Having completed a five-year pilot in 2001,
the ETV Program will have delivered more than 100 test plans and protocols, making them available
to the entire research and testing community, and will have verified approximately 150 technologies,
making data on their performance available for public use as well. EPA will continue to enhance
ETV Program outreach efforts through  the ETV Web site (http://www.epa.gov/erv/), national
conferences/workshops, and State permit writer training. The Agency will issue a report in F Y 2002
summarizing the results of the five-year pilot.
FY 2002 Change from FY 2001

S&T

•      (+$1,446,800) This represents a redirection of funds from the High Performance Computing
       and Communication (HPCC) Program to research that will explore the costs of mechanisms
       and incentives for environmental management. Fundamental understanding of effects such
       as impacts on innovation, competitiveness, and trade is also desired.

*      (+$ 1,404,000 and +10 FTE) This represents a redirection of funds from pollution prevention
       tools and technologies research to new research in Environmental Systems Management
       (ESM).  This research will explore the integration of social, economic, and environmental
       objectives in order to conduct environmental assessment and management for specific places.
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       (-$4,864,300) The F Y 2002 Request is $4,864,300 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process that are
       not included in the FY 2002 President's Request.

*      (-$2,699,400 and -1 FTE) This reduction in funding represents the successful conclusion of
       the five year pilot phase of the Environmental Technology Verification (ETV) Program.
       These redirected resources will support Environmental Systems Management.   These
       resources will also fund additional global change assessment research in Goal 6, watershed
       restoration research in Goal 2, and waste treatment and containment research in Goal 5.

•      (-$ 1,945,700) This reduction reflects the successful completion of this area of High
       Performance Computing and Communication (HPCC) research. Specifically, this program
       developed a flexible framework for incorporating advanced computing technologies that
       would facilitate cross-media environmental modeling and risk assessments, data management
       and manipulation, and techniques for representation of the earth's surface and subsurface
       characteristics. Advanced computing technologies are now routinely incorporated into new
       research on specific large scale, cross-media environmental models. These resources have
       been primarily  redirected to support research on mechanisms and incentives for
       environmental management.

•      (-$1,830,900)  This reduction  relates to the change in resources set aside for the Small
       Business Innovative Research (SBIR) Program from its FY 2001 levels, and is primarily due
       to the fact that F Y 2001 Congressional earmarks are not included in the F Y 2002 President's
       Request.

       (-$1,031,700) This reduction reflects a realignment of socio-economic research to Objective
       8.3 where ecosystem and human health benefits valuation and decision-making processes
       will be researched.

•      (-$813,600 and -9 FTE) This reduction in workyears from pollution prevention tools and
       technologies research will be refocused to the Environmental Systems Management (ESM)
       Program where research will explore environmental issues  beyond those in the industrial
       sector.

*      (-$632,800 and -7 FTE) The Agency is reducing its intramural efforts in lower priority
       pollution prevention programs.  This reduction will result in reduced work in pollution
       prevention tools and  technologies research, particularly the  development of new and
       innovative technologies that go beyond remediation and control measures.
EPM

       (-$2,777,600) The FY 2002 Request is $2,777,600 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001  appropriations process that are
       not included in the F Y 2002 President's Request.


                                        VIII-41

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Pollution Prevention Tools and Methodologies
In 2002     Improve P2 tools for the industrial sector and other sectors by providing updated/new
            methods and approaches to help users simulate product, process or system redesign and
            evaluate resulting pollution levels, impacts and costs.

In 2001     Prepare and deliver pollution prevention tools and methodologies for multiple economic
            sectors in order to enhance a preventive approach to risk management and advance the use
            of pollution prevention and sustainable development.

In 2000     Decision-support tools and methods were developed which can be applied to determine the
            value and costs of solutions to environmental problems. Partnerships were also developed
            to assist community-based environmental programs in implementing these tools and methods.

In 2000     Computer-based tools capable of preventing or reducing pollution in chemicals and industrial
            processes were developed by completing the products listed below and  other research
            activities.
Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
Complete dev. of the PARIS II Software, a
tool to design env. benign solvents, &
complete dev. & integration of WAR
Algorithm, v  1.0, into a commercially
available chemical process simulator

Complete BETA testing of decision support tool
for life cycle analysis of municipal solid waste
management options.

Provide an upgraded & enhanced Solvents
Alternatives Guide (SAGE) software (expert)
to incl. cost algorithms, giving it cost
projection capability to complement its process
selection capability

Integrate the process change/waste reduction
algorithm (WAR) with costing software
(Icarus) and a chemical process simulation
package (Aspen).

Complete a decision support tool for life
cycle analysis of municipal solid waste
management options.

Publish a peer-reviewed protocol for
conducting Risk Management Evaluations.

Complete grant on development of tool for
            30-Sep-2000
            30-Sep-2000
                        software
                        tool
            30-Sep-2000
                        software
                                               package
                                               tool & report
                                               protocol
                                                VIII-42

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predicting biodegradability of compounds.

Enhance the Waste Reduction Algorithm
environmental impact assessment tool used
to design or retrofit chemical processes with:
(1) a better assessment methodology and
(2) new features (costing).

Prepare a pest resistance management
framework to prolong the effectiveness of
genetically-modified corn pesticide
characteristics for the Office of Pesticide
Programs during product registration.

Provide a PC-based tool for use by EPA
and the metal finishing sector in evaluating
exposure and inhalation health risks to
workers and residents living near metal
finishing facilities.
                                                grant report
                                                method
                                                protocol
                                    1
risk tool
Baseline:    Although pollution prevention is the preferred approach to protecting human health and the
            environment, implementation of preventive approaches is hampered by a lack of available
            information on comparative risks, effectiveness, and costs of alternatives. Current tools for
            evaluating proposed changes in products, processes, or system designs are focused on only
            a few sectors; limited in availability, ease of use, and application; and restricted in their
            capability to determine pollution levels, health and environmental impacts, and costs of the
            proposed changes.  This research will produce a set of improved tools for the chemical,
            coatings, metal finishing and other sectors that will be widely available, easy to use, and
            applicable for evaluating alternative approaches and predicting results, at relatively low cost,
            prior to the investment of capital in these alternatives.

New Technologies

In 2002     Formalize generic testing protocols for technology performance verification, and provide
            additional performance verifications of pollution prevention,  control and monitoring
            technologies in all environmental media.

In 2002     Develop and deliver new or improved technologies and chemical processes that minimize or
            eliminate the production of hazardous pollutants from air, liquid,  and solid waste streams,
            primarily metals and organic solvents used in the pulp and paper,  metal finishing, coatings
            and chem. industrial sector

In 2001     Develop, evaluate, and deliver technologies and approaches that eliminate, minimize, or
            control high risk pollutants from multiple sectors. Emphasis will be placed on preventive
            approaches   for  industries   and   communities   having  difficulty  meeting
            control/emission/effluent standards.

In 2000     A very successful pilot program to verify environmental technologies has been underway,
            producing a number of verified, innovative environmental technologies now commercially
            available by completing the products listed below and other research activities.
Performance Measures:
FY1999    FY2000    FY2001-   FY2002
                                                 VIII-43

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                                            Actuals      Actuals      Estimate     Request
Complete test protocols for all 12 ETV
pilots will be available.

Verify 125 technologies (cumulative
since 1996).

Deliver a Report to Congress on the status
and effectiveness of the Environmental
Technology Verification (ETV) Program
during its first five years.

Complete performance evaluations of various
metal finishing processes aimed at zero-discharge
metal pretreatment as replacements for more
hazardous processes.

Complete a capstone report summarizing
current knowledge about volatile organic
compounds and hazardous air pollutants
emissions from paints used indoors.

Develop new process for drycleaning
microelectronic wafers to decrease water
usage and toxic chemicals.

Develop the scientific basis for pollution
prevention alternatives in the pulp and paper
industry for advancement of BAT.

Provide engineering data on cleaner
alternative processes or oxychemical
production for the formulation of
environmental impact and cost analyses.

Advance the use of low toxicity chemicals
utilizing engineering/cost evaluation
techniques in the metal finishing  industry.

Complete 20 stakeholder approved and
peer-reviewed test protocols in all
environmental technology categories under
ETV, and provide them to testing
organizations world-wide.
51
111
protocols


technologies
                                    report
                                    report
                                    report
                                    grant report
                                    evaluation
                                    evaluation
                                     evaluation
                        20
protocols
Baseline:   A significant hindrance to wider acceptance and implementation of pollution prevention is
            a shortage of cost-effective alternative technologies and processes. This is particularly true
            for some industrial sectors using or generating pollutants that pose significant health and
            environmental  risks that are resistant to  treatment,  reduction,  or  elimination,  such  as
            chlorinated organic  solvents and toxic metals.  This research will create alternative
            technologies and processes for reducing or eliminating these pollutants in key industries.
                                                 VIII-44

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Actual environmental risk reduction is directly related to performance and effectiveness of environmental technologies
purchased and used. Private sector technology developers produce almost all of the new technologies purchased in the
U.S. and around the world. Purchasers and permitters of environmental technologies need an independent, objective,
high quality source of performance information in order to make more informed decisions; and vendors with innovative,
improved, faster, and cheaper environmental technologies need a reliable source of independent evaluation to be able
to penetrate the environmental technology market.  Having completed a five-year pilot in 2001, the Environmental
Technology Verification (ETV) Program will have delivered more than 100 test plans and protocols, making them
available to the entire research and testing community, and will have verified approximately 150 technologies, making
data on their performance available for public use as well.
Verification and Validation of Performance Measures

Performance Measures:

1) Enhance the Waste Reduction Algorithm environmental impact assessment tool used to design
or retrofit of chemical processes with: a better assessment methodology and new features (costing).

2)  Prepare  a  pest resistance  management  framework  to  prolong  the. effectiveness of
genetically-modified corn pesticide characteristics for the Office of Pesticide Programs during
product registration.
3) Provide a PC-Abased tool for use by EPA and the metal finishing sector in evaluating exposure and
inhalation health risks to workers and residents living near rnetal finishing facilities.

Performance Database: Not applicable. This performance measure relates to an EPA scientific
or technical product which is not tracked in an environmental database.

Data Source: Agency generated material

QA/QC Procedures: N/A

Data Quality Reviews: As required by the Agency-wide formal peer review policy issued in 1993,
and reaffirmed in 1994 and 1998, all major scientific and technical work products used in Agency
decision making are independently peer reviewed before their use. EPA has implemented a rigorous
process of peer review for both its in-house and extramural research programs. Peer review panels
include scientists and engineers from academia, industry, and other federal agencies.

Data Limitations: N/A

New/Improved Data or Systems: N/A

Coordination with Other Agencies
                                          VIII-45

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      Pollution prevention, cost benefit analyses, and Environmental Technology Verification
(ETV) are all research areas that lend themselves to and benefit from engagement with other Federal
organizations as described below.

      EPA has worked over the years with the National Science Foundation (NSF) in co-funding
extramural research on Technology for a Sustainable Environment and Environmental Valuation.
The  Agency  has  contributed projects to the  Department  of Defense's  (DOD's)  Strategic
Environmental Research  and Development Program with particular emphasis on the pollution
prevention pillar and the use of life cycle thinking in addressing the production and manufacture of
weapons  and military hardware.  Preliminary contacts have been made with the Department of
Agriculture (USDA) regarding life cycle analysis and a preventive approach in the development and
advancement of biologically  and  genetically altered products.  EPA is also working with the
Department of Energy (DOE), POD, USDA, the National Institute of Health (NIH), the National
Institute of Standards and Technology (MIST),  NSF, and the National Aeronautics and Space
Administration(NASA) in Metabolic Engineering research. EPA and DOD's U. S. Army Corps of
Engineers will continue addressing the costs and benefits associated with the implementation of new
engineering projects and technologies.

      Under the Persistent Bioaccumulative Toxics Program, EPA has been working with DOE
and the U. S. Geological Survey  to address risk management issues associated  with mercury
emissions from utilities.  In FY 2002, these efforts will continue to expand through the Mercury
Research Strategy under Goal 8, Objective 3. -

      With respect to ETV, the Agency has co-funded efforts on monitoring technology evaluation
with DOE's  Sandia  and Oak  Ridge National Laboratories.   Additionally, EPA signed  a
Memorandum of Agreement with DOD to jointly advance ETV and DOD's Environmental Science
and Technology Evaluation Program for evaluating and verifying environmental technologies.
Discussions are underway with the U.S. Coast Guard on verification of technologies for treating ship
ballast water.

Statutory Authorities
Clean Air Act
The Safe  Drinking Water Act
The Clean Water Act
The Toxic Substances Control Act
The Federal Insecticide, Fungicide, and Rodenticide Act
The Resources Conservation and Recovery Act
Superfund Amendments Reauthorization Act
Clean Air Act Amendments of 1990
Pollution Prevention Act of 1990
                                       VIII-46

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                           Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

          Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems

Objective #5:  Quantify Environmental Results of Partnership Approaches

       Increase partnership-based projects with counties, cities, states, tribes, resource conservation
districts, and/or bioregions, bringing together needed external and internal stakeholders, and quantity
the tangible and sustainable environmental results of integrated, holistic, partnership approaches.
                                  Resource Summary
                                 (Dollars in thousands)

Quantify Environmental Results of
Partnership Approaches.
Environmental Program & Management
FY1999
Enacted
$14,660.6
$14,660.6
FY 2000
Actual
$16,807.5
$16,807.5
FY 2001
Enacted
$9,604.2
$9,604.2
FY2002
Request
$7,626.8
$7,626.8
       Total Workyears
            15.4


   Key Programs
(Dollars in thousands)
46.2
9.3
4.6

Innovative Community Partnership Program
Regional Geographic Program
Administrative Services
Regional Management
FY 1999
Enacted
$4,725.0
$8,358.3
$0.0
$0.0
FY2000
Enacted
$0.0
$8,352.7
$0.0
$0.0
FY 2001
Enacted
$0.0
$8,192.3
$70.9
$93.2
FY2002
Request
$0.0
$7,421.3
$50.3
$108.5
                                        VIII-47

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FY 2002 Request

       The Regional Geographic Initiatives (RGI) program was established to help integrate local
initiatives for control of hazards to human health and ecosystems that are matters of intense state and
local concern or controversy. Project implementation is an efficient, bottoms-tip, stakeholder
planning and participation process.  The RGI program is a grassroots approach to long-term,
sustainable environmental restoration that is now proving itself in diverse communities across the
nation.

       In FY 2000, the RGI program supported 132 projects in 47 states and 3 United States
territories.  The RGI program is a critical  resource for place-based, state-of-the-art multi-media
projects and has succeeded in fostering a wide array of partnerships, including states, businesses and
local communities.

       The RGI program is different from other traditional EPA programs in that it addresses
environmental risk holistically (multi-media) and requires partnering. RGI is EPA's role model for
transitioning from a single-media to multi-media focus, based on consensus-building, science and
risk assessment.

       The program provides grants for projects that are  identified as high priority by an EPA
Region, state or locality,  that poses a high human health  or ecosystem risk, and has significant
potential for risk reduction. The program supports projects that are bounded by the region or place
in which the problem exists  rather than a pollutant or sector. The problems addressed  by this
program are often multi-media in nature and showcase innovative, multi-media solutions. All of the
geographic initiatives within the program directly support  one or more of the EPA seven guiding
principles:  ecosystem management, environmental justice, partnerships, sound science and data,
pollution prevention, reinventing EPA management, and environmental accountability.
FY 2002 Change from FY 2001 Enacted
       (-$698,500) The FY 2002 Request is $698,500 belowthe FY 2001 Enacted budget level due
       to Congressional earmarks received during the FY 2001 appropriations process which are
       not included in the FY 2002 President's Request.

       (-$342,0007-1.9 FTE) The FY 2002 Request is $342,000 and 1.9 FTEs belowthe FY 2001
       Enacted budget level due to reductions taken to the Regional Geographic Initiatives Program.

       (-$257,0007-2.8 FTE) The FY 2002 Request is $257,000 and 2.8 FTEs below the FY 2001
       Enacted budget level due to reductions and redistributions to goal 10 regional management
       activities.
                                        VIII-48

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Verification and Validation of PMs




      None






Coordination with Other Agencies




      None






Statutory Authorities




Multi-media
                                       VIII-49

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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

           Sound Science, Improved Understanding of Environmental Risk, and
                  Greater Innovation to Address Environmental Problems

Objective #6: Incorporate Innovative Approaches

       Incorporate innovative approaches to environmental management into EPA programs, so that
EPA and external partners achieve greater and more cost-effective public health and environmental
protection.
                                   Resource Summary
                                   (Dollars in thousands)
                                         FYI999
                                         Enacted
           FY 2000
            Actual
          FY 2001
          Enacted
         FY 2002
         Request
Incorporate Innovative Approaches.

    Environmental Program & Management
$27,975.4     $19,593.8     $25,313.6     $21,449.6

$27,075.4     $18,216.3     $24,914.5     $21,449.6
    Science & Technology

       Total Workyears
   $900.0

    132.5
$1,377.5

   105.2
$399.1

 134.0
 $0.0

129.7
                                      Key Programs
                                   (Dollars in thousands)
                                            FY1999
                                            Enacted
              FY 2000
              Enacted
           FY2001
           Enacted
         FY2002
         Request
Project XL

Common Sense Initiative

Reinvention Programs, Development and
Coordination

Small Business Ombudsman

Performance Track

Administrative Services
    $4,681-9      $3,065.0     $2,922.2     $3,090.2

    $6,779.9      $4,072.2     $1,781.1     $1,921,6

    $9,712.3      $9,748.9    $10,404.9    $11,050.1


    $1,110.3      $1,120.3     $3,000.9     $3,106.6

       $0.0         $0.0     $1,995.6     $1,843.6

       $0.0        $110.6        $98.6        $88.2
                                          VIII-50

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FY 2002 Request

       EPA's community-based approach works to provide integrated assessment  tools and
information for environmental protection in partnership with local, state, and Tribal governments.
EPA Regions also provide direct assistance to communities to assist them in implementing local
environmental management efforts and in building capacity for local problem solving. In 2002, EPA
will continue to support over 150 demonstration projects assisting local community environmental
planning and management These projects strengthen local and intergovernmental partnerships to
address risks to human health and ecosystems that provide goods and services to our communities.
Specifically, EPA will provide assistance to communities to help them identify the integrated set of
local environmental issues and develop strategies to address interconnected issues with appropriate
regulatory and non-regulatory tools.  EPA will also provide tools and information to build better
stakeholder involvement and to assist communities in conducting assessments of environmental
issues. EPA will assist local communities with identifying measures of performance to enlighten
local decisions and assess the value of various models of community-based efforts. EPA will also
conduct evaluations of existing projects to assess and fine-tune its own approaches and to derive
direction for future demonstrations.

       EPA is also exploring the potential for more integrated, holistic regulatory approaches at a
facility level, building on experience with permitting and pollution prevention innovations already
piloted at both Federal and state levels. EPA sees facility-wide approaches as holding the possibility
of obtaining better environmental results while eliminating unnecessary regulatory burdens. These
approaches should also help stimulate pollution prevention, and help facilities obtain the maximum
benefit from their use of environmental management systems.

       In order to reform the regulatory system to achieve better results at less cost, without
sacrificing public health or environmental protection, EPA will pursue a program focused on sectors,
facility-based pilots, small business, performance incentives, and communities.

       In FY 2002, EPA will begin to implement recommendations in its Sector Program plan 2001 -
2005  (endorsed by the National Advisory Council on Environmental Policy and Technology in
November 2000).  The Agency's sector programs will expand their innovative  sector-based
approaches to improved environmental  protection, continuing work with current sectors (e.g., the
Metal Finishing Strategic Goals Program), starting new  work with interested industries, and
developing recommended tools and services through a new Center for Industry  Sector Innovation
to enhance the performance of sector programs at the Federal, state, and local levels.

       Project XL, launched  in 1995,  was designed to improve EPA's ability to innovate and
incorporate flexible approaches that result in environmental improvement and reduced cost. In FY
2002, EPA will move innovative piloting to the next phase. This next phase will include: 1)
managing ongoing XL pilot projects (now over 50); 2) evaluating the project results for their
environmental and economic benefits and their applicability to policy and regulatory improvements;
3) incorporating the  applicable policy  and regulatory improvements into EPA's core functions
including regulations, permitting, monitoring and reporting requirements, and other areas; 4)

                                        VIII-51

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working with  states to implement innovative pilots that require Federal flexibility under the
ECOS-EPA Innovations agreement; and 5) implementing additional innovative pilots that address
opportunities identified by EPA, the business community and other stakeholders. In addition, the
Agency will work to build its capacity to conduct program  evaluation and foster its use as a
management tool for continuous program improvement. This activity responds to recommendations
from the National Academy of Public Administration and will ensure that EPA is able to keep pace
with the rapidly expanding program evaluation activities at the state level and the emergence of
Environmental Program Evaluation as a nationally-recognized sub-discipline.

       Sector  strategies complement current EPA activities by allowing the Agency to approach
issues more holistically, with integrated strategies for each industry sector. Sector-based approaches
also enable EPA to tailor efforts to the particular characteristics of each sector, identify related
groups of stakeholders with interest in a set of issues, link EPA's efforts with those of other agencies,
and craft new approaches to environmental protection.

       In 2002, the Agency will extend its sector-based programs by building consideration of
sector-specific applications into the development of regulations and policy/guidance documents. It
will continue to expand its work with specific sectors, particularly those characterized by a high
concentration of small businesses. EPA will continue implementation and expansion of the Metal
Finishing Strategic Goals Program, and will pursue similar performance partnership programs with
other industries, including the Metal Casting, Meat Processing, Shipbuilding, and Specialty-Batch
Chemical sectors. In these and newly selected Sustainable Industries Partnership program sectors,
EPA will develop incentives, create tools, test innovative ideas, and remove barriers to improved
environmental performance  with reduced regulatory burden. Sector-based approaches are also
inherent in other innovations that the Agency is exploring or scaling up, such as the Massachusetts
Environmental Results Program and the PrintStep Program.

       In the process of developing sectoral approaches, EPA will continue to add to the set of tools
it uses to effectively and efficiently deliver environmental quality, promote pollution prevention, and
increase  risk  reduction.   While EPA  continues  to rely on  standard setting, permitting and
enforcement, these traditional tools are now often augmented by compliance assurance, voluntary
programs, stakeholder involvement and  many new sector-based processes and programs designed
to ensure quicker or more  effective results.  In support of these strategies, EPA will continue to
implement projects that offer  flexibility or other benefits  to test innovative approaches to
environmental protection.

       In 2002, the Agency will build on its recent successes and continue to work with the small
business community  to develop new tools, and explore incentive approaches that are tailored,
information rich, and are key to a company's bottom line and improved performance. The Agency
will support the integration  of small business assistance and policy innovation efforts with the
program offices, and  explore  more creative  ways to deal with  compliance assistance and
enforcement.  We will work  with program offices to streamline and coordinate Agency efforts to
provide more reliable environmental information to existing state assistance providers and to small
businesses.
                                         VIII-52

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       Finally, the Agency will more effectively integrate and manage EPA's resources and efforts
that are currently available for promoting environmental quality at the community level. The Agency
will work to ensure that those communities pursuing development strategies that incorporate
environmental quality considerations receive appropriate credit under the Agency's core program
areas - air quality, water quality, waste management. Under this goal, the Agency will focus on
improving  environmental  quality by:  (1)  removing barriers  and  creating incentives  for
environmentally beneficial  development;  (2)  developing  tools and  technical assistance;  (3)
leveraging EPA's resources to provide and disseminate  information (e.g.,  through web sites and
publications); (4) forming multi-disciplinary, multi-lateral partnerships among public and private
sector stakeholders; and (5)  identifying and conducting research related to environmental quality
impacts associated with development patterns and practices.

       The Agency will be responsive to a large and growing number of requests from states to help
them address the environmental issues associated with growth and development. EPA will integrate
smart growth approaches to environmental quality and voluntary smart growth programs within key
program offices and Regional offices.  In response to then- requests, EPA will help states and local
governments achieve their environmental goals, using smart growth approaches.  The Agency will
also develop regulatory incentives that will encourage redevelopment within metropolitan areas and
help preserve watersheds, open space, and habitats on edge.  These incentives will also encourage
more environmentally-friendly development in rural areas.

       EPA has developed  a broad-based, Agency-wide strategy for achieving cleaner, cheaper,
smarter results from environmental programs. By rethinking problems and the solutions typically
used to solve them, reinvention engages Agency managers and staff, as well as external stakeholders,
in rinding better ways of doing business without imposing unnecessary costs and regulatory burdens.
EPA has developed a dual strategy for reinventing environmental protection:  (1) innovating and
streamlining the current regulatory system (e.g., consolidate and simplify regulations and reporting
requirements, and streamline  permitting), and (2) designing and testing integrative and holistic
approaches (e.g.,  sector- and  industry-based approaches,  and community-based  environmental
protection, partnership programs).  Through this work, EPA is implementing strategies that lead to
better protection at less cost, and is moving beyond the single-media focus of the past to better
address today's environmental challenges.

       The Office of Policy, Economics, and Innovation (OPEI) will serve as a primary gateway for
stakeholders/customers to use in interacting with EPA on innovation and  will define the vision,
strategy, ground rules,  and  principles for innovation by engaging stakeholders. The office will
ensure new approaches are identified, designed, and piloted by program-specific approaches in other
EPA offices and manage Agency-wide approaches in OPEL Integrating and coordinating new
approaches across the Agency  into a coherent strategy for change, tracking innovation progress and
evaluating innovation success, and ensuring successful new approaches are incorporated into the
way EPA does business will also be a focus of OPEL

       In 2002, EPA will work to provide incentives and rewards to good environmental performers
in the business community,  A Performance Track Program that is designed  to motivate and reward
top environmental performance will be developed. Participation in the Performance Track program

                                        VIII-53

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enables facilities to implement flexible and potentially more efficient approaches to environmental
protection. Participating facilities will receive several incentives in return for their environmental
commitments EPA will continue to pursue reforms in the permitting system and to develop policy
on the role of environmental management systems in environmental regulation.  Using lessons
learned from recent initiatives,  EPA will undertake projects suggested by internal or external
stakeholders that test ways to modify EPA's core programs to foster flexibility (in regulations, policy,
and guidance) as incentives and to gain superior environmental performance. Taken together with
related work across the Agency, this approach is designed to promote a systematic process of
experimentation, evaluation, and program change in response to the lessons learned from innovation.
FY 2002 Change from FY 2001 Enacted

EPM

       (-$4,330,300) TheFY2002Requestis$4,330,300belowtheFY2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which
       are not included in the FY 2002 President's Request.

•      (-$161,0007-2.2 FTEs) Reflects a reduction taken to low priority urban sprawl activities in
       the Office of Policy, Economics, and Innovation.

•      (-$161,000) Reflects reductions taken to the Performance Track program.

•      (+$ 1,007,300) This increase reflects an increase in workforce costs.
       (-$399,100) The FY 2002 Request is $399,100 below the FY 2001 Enacted budget level
       due to Congressional earmarks received during the FY 2001 appropriations process which
       are not included in the FY 2002 President's Request.
Annual Performance Goals and Performance Measures

       Research

Reinvention Activities

In 2002    Through Performance Track Program, achieve environmental performance improvements
          in participating facilities.

Performance Measures:                   FY 1999    FY2000    FY200I    FY2002
                                     Actuals     Actuals     Estimate    Request

Through established Performance Track
reporting program, achieve measurable


                                        VIII-54

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environmental performance improvement
in 50% of the reporting facilities                                           50        percent

Baseline:   Baseline will be established in FY2002
Verification and Validation of PMs

       None


Coordination with Other Agencies

       None


Statutory Authorities

National Environmental Policy Act

The Economy Act of 1932

TSCA sections 4, 5, and 6 (15 U.S.C. 2603,2604, and 2605)

PPA(42U.S.C. 13101-13109)

CWA
                                        VIII-55

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                           Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

           Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems

Objective #7:  Demonstrate Regional Capability to Assist Environmental Decision Making

       Demonstrate regional capability to assist environmental decision making by assessing
environmental conditions  and  trends,  health  and  ecological  risks,  and the  environmental
effectiveness of management action in priority geographic areas.
                                  Resource Summary
                                  (Dollars in thousands)
                                        FY 1999
                                        Enacted
          FY 2000
           Actual
          FY200I
          Enacted
          FY2002
          Request
Demonstrate Regional Capability to Assist
Environmental Decision Making.

    Environmental Program & Management
$6,732.0
$3,599.1
$5,896.9
$3,054.3
$6,843.7
$3,850.3
$3,594.1
$3,594.1
    Hazardous Substance Superfund

       Total Workyears
$3,132.9      $2,842.6      $2,993.4

    92          4.8           5.5
                             $0.0

                             3.1
                                     Key Programs
                                  (Dollars in thousands)

                                           FY 1999     FY 2000
                                           Enacted     Enacted
                        FY2001
                        Enacted
                       FY2002
                       Request
Regional Science and Technology
   $6,697.0
  $5,963.4
 $6,843.7
$3,594.1
FY 2002 Request

       The Regional Science and Technology (RS&T) program will continue to provide field
sampling, analytical, and data management support, including quality assurance to base program
needs  operating within the  Regions before and after  implementation of statutory  mandates,
community-based environmental protection, common sense,  sector-based and  geographically
targeted initiatives.
                                        VIII-56

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       Within the existing regional laboratory system, specialized expertise has been developed to
respond to specific regional needs. These capabilities, collectively called the Centers of Applied
Science, have broad application and frequently constitute the best knowledge of the subject in the
country.  Through these Centers of Applied Science, the regional laboratories are committed to
advancing state-of-the-art applied science and sharing that information to state, local, and other
Federal agencies through training and other appropriate forums. Centers have been established in
the areas of ambient  air monitoring,  analytical pollution prevention, environmental biology,
environmental microbiology, and environmental chemistry.

       Data and information management systems will be in place, including data quality indicators,
that will enable EPA and partner agencies to locate, assess and share environmental data for their
program needs. The RS&T program will continue to build capacity and support partner agencies by
providing technical and analytical support in the assessment of environmental problems, and by
converting environmental data into useful decision-making information.
FY 2002 Change from FY 2001 Enacted

EPM

       (-$256,200) The FY 2002 Request is $256,200 below the FY 2001 Enacted budget level due
       to reductions taken to Regional Science and Technology efforts.
SF
       (-$2,993,400) Redirection from Goal 8 to Goal 5 to better align laboratory resources that
       support the Superfund program.
Verification and Validation of PMs

       None


Coordination with Other Agencies

       None


Statutory Authorities

Multi-media



                                        VIII-57

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                           Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

          Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems

Objective #8:  Conduct Peer Review to Improve Agency Decisions

       Conduct peer reviews and provide other guidance to improve the production and use of the
science underlying Agency decisions.
                                  Resource Summary
                                 (Dollars in thousands)

Conduct Peer Review to Improve Agency
Decisions.
Environmental Program & Management
FY 1999
Enacted
$2,486.7
$2,486.7
FY2000
Actual
$2,501.7
$2,501.7
FY2001
Enacted
$2,775.1
$2,775.1
FY 2002
Request
$3,012.8
$3,012.8
       Total Workyears
 22.5
  22.6
  22.5
   22.5
                                    Key Programs
                                 (Dollars in thousands)
                                          FY1999     FY2000     FY 2001     FY2002
                                          Enacted     Enacted     Enacted     Request
Science Advisory Board
$2,486.7
$2,861.7
$2,763.3
$3,012.8
FY 2002 Request

       The Science Advisory Board (SAB) plans to maintain the level and quality of its peer review
activities to support the Agency by selecting issues for review that best meet the criteria for SAB
review; i.e, those that impact on overall environmental protection,  address novel problems or
principles, influence long-term technological development,  deal with problems that transcend
Agency boundaries, strengthen the Agency's basic capabilities, and/or serve Congressional and other
leadership interests.

       In addition, the SAB will expand its efforts to incorporate the technical aspects of economics
and other social sciences into environmental decision making and to find the best ways to integrate

                                       VIII-58

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science considerations into the Agency's new ways of doing business (e.g., place-based and sector-
based).

      For many years the SAB's goal has been to make a positive difference in the production and
use of science at EPA. Established by Congress in 1978, the SAB utilizes non-government technical
experts who serve as its 100 members and more man 300 consultants. They represent a broad range
of disciplines  — physics, chemistry, biology,  mathematics,  engineering, ecology, economics,
medicine, and other fields. Operating under the Federal Advisory Committee Act (FACA), the SAB
empanels technically strong and diverse groups to ensure a balanced range of technical views from
academia,  communities, states, independent research institutions, and industry.

      To truly make a positive difference in the production and use of science at EPA, the Board
must do more than review Agency products from traditional line offices. It must help the Agency
make strategic use of science.  Science alone is insufficient for making environmental decisions, but
it is impossible to protect human health and the environment without science.

      Economic and other  social science issues are particularly important now that EPA is
experimenting  with new information-based, voluntary approaches to environmental protection ~
such as working with stakeholders in communities and sectors to achieve environmental  goals that
voluntarily go  beyond the national standards. Therefore, the SAB will find effective ways for
science to  contribute to the Agency's  new ways of doing business.
FY 2002 Change from FY 2001 Enacted

EPM

•      (+$237,700) This increase reflects an increase in workforce costs.


Verification and Validation of PMs

       None


Coordination with Other Agencies

       The Science Advisory Board (SAB) interacts with comparable advisory bodies within and
outside the Agency; in some cases, seeking and maintaining liaison and integrated membership with
some of these bodies. For example, the chairs of the ORD Board of Scientific Counselors (BOSC),
the FIFRA Scientific Advisory  Panel (SAP), and the Children's Health Protection Advisory
Committee participate in the quarterly meetings of the SAB Executive Committee (EC) meetings.
There are also membership contacts and exchanges with technical advisory bodies in the Department
of Defense, Department of Energy, and the National Research Council of the National Academy of
Sciences. In addition, the Board has sought interactions with advisory groups at different levels (e.g.,

                                       VIII-59

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the advisory committee to the Mayor of Columbus, Ohio; the environmental advisory board to the
Governor of the State of Michigan; the Health Council of the Netherlands; and the Academy of
Sciences of Australia).

       The success of the SAB is measured, in part, by the extent that the knowledge that it
generates and the advice that it offers is followed and by the extent to which the Board is used as a
model for advisory boards at various levels of government — from the local level to the international
level.
Statutory Authorities

Federal Advisory Committee Act (5 U.S.C. App.)
                                        VIII-60

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Goal 9: Credible Deterrent

-------
Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 9: A Credible Deterrent to Pollution and Greater Compliance with the Law	IX-1
       Increase Compliance Through Enforcement	IX-6
       Promote Compliance Through Incentives and Assistance	IX-33

-------
                           Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

         A Credible Deterrent to Pollution and Greater Compliance with the Law
Strategic Goal: EPA will ensure full compliance with the laws intended to protect human health
and the environment.
                                  Resource Summary
                                  (Dollars in thousands)
                                         FY 1999
                                         Enacted
            FY2000
            Actual
FY2001      FY2002
Enacted      Request
Goal 09  A Credible Deterrent to Pollution
        and Greater Compliance with the
        Law

Obj. 01  Increase Compliance Through
        Enforcement.

Obj. 02  Promote Compliance Through
        Incentives and Assistance.

                 Total Workyears
$322,088.2     $371,228.0    $397,274.6    $411,215.7



$279,217.7     $321,135.6    $344,745.7    $356,652.5


 $42,870.5      $50,092.4     $52,528.9     $54,563.2


   2,587.8       2,499.8       2,553.8       2,330.3
Background and Context

       Protecting the public and the environment from risks posed by violations of environmental
requirements is, and always has been, basic to EPA's mission. Many of America's environmental
improvements over the last quarter century are attributable to a strong set of environmental laws and
an expectation of compliance with those laws. EPA's enforcement program has been the centerpiece
of efforts to ensure compliance, and has achieved significant improvements in human health and the
environment.
Means and Strategies

       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 enforcement of them. Due to the breadth
and diversity of private, public, and federal facilities regulated by EPA under various statutes, the

                                         IX-1

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Agency needs to target its enforcement and compliance assurance activities strategically 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. A strong enforcement program identifies
noncompliance problems, punishes violators, strives to secure a level economic playing field for
law-abiding companies, and deters future violations, 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 risks to human health or  the environment, display patterns of
noncompliance and include disproportionately exposed populations.

       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.  Further, EPA cooperates with other nations to  enforce and ensure compliance with
environmental regulations.   At the Federal level, EPA  addresses its responsibilities under the
National Environmental Policy Act (NEPA) by seeking remedies for potentially adverse impacts of
major actions taken by EPA and other Federal agencies.

       The Agency's enforcement and compliance assurance program uses voluntary compliance
assistance and incentive tools to ensure compliance with regulatory requirements and reduce adverse
public health and environmental problems. Maximum compliance requires the active efforts of the
regulated community to police itself.  EPA supports the regulated community by assuring that
requirements are clearly understood and by helping industry find cost-effective options to comply
through the use  of pollution prevention and innovative technologies.  EPA will continue to
investigate options for encouraging self-directed audits and  disclosure; measure and evaluate the
effectiveness  of Agency programs in  improving compliance rates;  provide information and
compliance assistance to the regulated community; and develop innovative approaches to meeting
environmental standards through better communication, cooperative approaches and application of
new technologies.
Strategic Objectives and FY 2002 Annual Performance Goals

Objective 01:  Increase Compliance Through Enforcement

•    ,  Maintain and improve quality and accuracy of EPA's enforcement and compliance data to
       identify noncompliance and focus on human health and environmental problems,

•      Improve capacity of states, localities and tribes to conduct enforcement and compliance
       programs.  EPA will provide training as well as assistance with state and tribal inspections
       to build capacity, including implementation of the inspector credentials program for tribal
       law enforcement personnel.

*      EPA will direct enforcement actions to maximize compliance and address environmental and
       human health problems; 75% of concluded enforcement actions will require environmental
                                         IX-2

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      or human health improvements such as pollutant reductions and/or changes in practices at
      facilities.

      EPA will  conduct  15,000  inspections, 400  criminal  investigations, and  200 civil
      investigations targeted to areas that pose risks to human health or the environment, display
      patterns of non-compliance or include disproportionately exposed populations.

      Ensure compliance with legal requirements for proper handling of hazardous waste imports
      and exports.
Objective 02: Promote Compliance Through Incentives and Assistance

•      Increase opportunities through new targeted sector initiatives for industries to voluntarily
       self-disclose and correct violations on a corporate-wide basis.

•      Promote the use  of Environmental Management Systems  (EMS)  to  address known
       compliance and performance problems.

Highlights

Environmental Enforcement

       Coordinating its activities with the states, EPA will continue to support deterrence and
compliance activities by focusing its compliance monitoring on-site inspections and investigations,.
In setting the compliance and enforcement priorities and strategic direction of the program, EPA
coordinates its efforts with and solicits the views of our  states partners. The Agency uses the
State/EPA Enforcement Forum as a vehicle  in advancing the coordination of  efforts for joint
strategic planning between EPA and the states.

       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 and industry sector-based priorities have been established for
the national program through the Office of Enforcement and Compliance Assurance's Memorandum
of Agreement 2002/2003 guidance, developed in conjunction with the Regional offices.

       The civil and criminal enforcement program, in contributing to EPA's goal  to protect public
health and the environment, targets its actions based on health and environmental risk. The program
aims to level the economic playing field by ensuring that violators do not realize an economic benefit
from noncompliance and seeks to deter future violations. In FY 2002, the Agency's enforcement
initiatives include enforcement of the lead paint rules, and modernization of its data systems to assist
in targeting compliance and enforcement efforts.
                                         IX-3

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State, Tribal, and International Capacity Building

       A strong state and tribal enforcement and compliance assurance presence contributes to
creating deterrence and to reducing noncompliance. In FY 2002, the enforcement and compliance
assurance programs will work with and support state agencies implementing authorized, delegated,
or approved environmental programs. This effort will increase in FY 2002 with establishment of
a new grant program. These grants will allow states to expand their responsibility for enforcement
of environmental laws and regulations. Consistent with regulations and EPA policy, the Agency will
provide an appropriate level of oversight and guidance to states to ensure that  environmental
regulations are fairly and consistently enforced across the nation.

       The Agency provides grant funding, oversight, training and technical assistance to states and
tribes. The state and tribal grant programs are designed to build environmental partnerships with
states and tribes and strengthen their ability to address environmental and public health threats.
These threats include contaminated drinking water, pesticides in food, hazardous  waste, toxic
substances and air pollution.

       Meeting its objective of achieving the benefits of environmental requirements through an
enforcement presence requires EPA to effectively  implement international commitments for
enforcement and compliance cooperation with other countries, especially those along the U.S.
border. Through such arrangements, EPA works to reduce environmental risks to U.S. citizens from
external sources of pollution, as well as to prevent or reduce the impact of pollution origination in
the United States.

Compliance Incentives and Assistance

       The  Agency will continue to  support  the regulated  community's  compliance  with
environmental requirements through voluntary compliance incentives and assistance programs.  In
F Y 2002, the compliance incentives program will continue to implement the policy on Incentives
for Self-Policing as a core element of the enforcement and compliance assurance program.  In
addition, 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 in
specific industrial and commercial sectors or with certain regulatory requirements.
External Factors

       The Agency enforcement and compliance 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, that require a redirection of
                                          IX-4

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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. If these assumptions do not come to fruition, EPA's resources
may be needed to cover priority areas. In addition, several EPA targets rely on the Department of
Justice to accept and execute case loads. The success of EPA's activities hinge on the availability
and applicability of technology and 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 21s* 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.
                                         IX-5

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                           Environmental Protection Agency

           FY 2002 Annual Performance Plan and Congressional Justification

         A Credible Deterrent to Pollution and Greater Compliance with the Law


Objective #1:  Increase Compliance Through Enforcement

       EPA and its state, tribal, and local partners will improve the environment and protect public
health by increasing compliance with environmental laws through a strong enforcement presence.
                                  Resource Summary
                                 (Dollars in thousands)

FY 1999 FY 2000
Enacted Actual
Increase Compliance Through Enforcement $279,217.7 $321,135.6
Environmental Program & Management $188,095.7 $227,652.3
Science & Technology
State and Tribal Assistance Grants
Hazardous Substance Superfiind
Total Workyears


$8,583.9 $9,683.5
$67,884.4 $69,041.3
$14,653.7 $14,758.5
2,144.1 2,061.3
Key Programs
(Dollars in thousands)
FY 1999 FY 2000
Enacted Enacted
FY 2001 FY 2002
Enacted Request
$344,745.7 $356,652.5
$247,128.0 $234,926.1
$10,852.4 $11,044.5
$68,134.3 $93,134.3
$18,631.0 $17,547.6
2,130.5 1,910.3

FY2001 FY2002
Enacted Request
Civil Enforcement CWA - CWAP/AFOs
RCRA State Grants
Compliance Monitoring
    $0.0
$935.6
$977.3
$0.0
$43,222.7     $43,222.7    $43,127.6     $43,127.6

$57,462.0     $56,404.2    $56,781.2     $50,127.0
                                         IX-6

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                                           FY1999     FY2000     FY2001     FY2002
                                           Enacted     Enacted     Enacted     Request
Civil Enforcement
Criminal Enforcement
Compliance Assistance and Centers
Enforcement Training
State Pesticides Enforcement Grants
State Toxics Enforcement Grants
State Multimedia Enforcement Grants
Rent, Utilities and Security
Administrative Services
Regional Management
$83,650.4
$34,436.5
$36.6
$3,804.0
$19,511.7
$5,149.6
$0.0
$0.0
$1,521.4
$0.0
$82,350.9
$37,128.8
$0.0
$5,705.4
$19,911.6
$5,150.0
$0.0
$35,123.3
$4,400.6
$1,615.0
$101,817.0
$40,840.1
$0.0
$5,277.7
$19,867.8
$5,138.9
$0.0
$34,719.8
$5,556.5
$2,785.2
$99,229.6
$41,867.0
$0.0
$4,312.6
$19,867.8
$5,138.9
$25,000.0
$33,737.6
$5,212.6
. $2,042.1
FY 2002 Request

       Protecting the public and the environment from risks posed by violations of environmental
requirements is, and always has been, basic to EPA's mission.  The Agency's enforcement and
compliance assurance program has been the centerpiece of efforts to provide a deterrent to pollution
by ensuring compliance with environmental laws and regulations, and has achieved significant
improvements in public health and the environment. By identifying and addressing violations of
environmental statutes and regulations, the enforcement and compliance assurance program will
work together with states and tribes toward continuous improvement in compliance with standards,
permits and other established requirements to mitigate and avoid environmental problems and their
associated risks.

       Given the scope of its responsibilities and the large, diverse universe of private, public, and
federal facilities regulated under the various statutes, the Agency also will work to maximize its
effectiveness by strategically targeting its compliance and enforcement activities to address the most
significant risks to human health and the environment and to address disproportionate burden on
certain populations.  A strong compliance and enforcement program achieves environmental
protection by identifying noncompliance problems, holding violators accountable and deterring
future violations, while ensuring a level economic playing field for environmentally friendly
companies.
                                          IX-7

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       State, tribal and local governments bear much of the responsibility for ensuring compliance.
EPA will increase its efforts, through its new enforcement grant, to work with the states, tribes, and
other Federal agencies to promote environmental protection. Further, EPA will cooperate with other
nations to enforce and ensure compliance with international agreements affecting the environment.
These activities also ensure a level economic playing field in an increasingly global trading system.

Environmental Enforcement

       The  Agency  performs the compliance  monitoring,  civil  enforcement,  and criminal
enforcement programs activities in this objective.  In FY 2002, the Agency's enforcement and
compliance assurance program will measure its performance not only in terms of inspections and
enforcement actions,  but also in terms of pollutant reductions, human health and environmental
outcomes the program produces. This annual plan contains new annual performance goals and
measures to show results such as reducing significant non-compliance and returning violators to
compliance and  behavioral changes resulting  from compliance assistance efforts.  These new
measures will complement the traditional enforcement measures and portray a more complete picture
of the environmental results of the enforcement and compliance assurance program.

       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 workyears devoted to compliance monitoring are provided to
the regions to conduct investigations and on-site inspections including monitoring, sampling and
emissions testing. Compliance monitoring activities are both environmental media- and sector-
based. The traditional media-based inspections are a key 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. The multi-media approaches, such as cross-
media inspections, sector initiatives, and risk-based targeting allow the Agency to take a more
holistic approach to  protecting ecosystems  and to solving  the more intractable environmental
problems.  Under the Federal Facility Compliance Act (FFCA), EPA conducts hazardous waste
inspections of all Federal treatment, storage and disposal (TSD) facilities. The program will also
conduct single media and multimedia inspections to ensure compliance by Federal facilities.

       In FY 2002, EPA will review and respond to 100 percent of the notices for transboundary
movement of hazardous waste, ensuring that these wastes are properly handled in  accordance with
international agreements and Resource Conservation and Recovery Act (RCRA) regulations.
Through analysis of notices, manifests, tracking documents, and annual reports, EPA monitors
compliance with relevant regulations and takes enforcement actions as necessary. While the vast
majority of the hazardous waste trade occurs with Canada, the U.S. also has agreements concerning
international trade in hazardous wastes with Mexico, Malaysia, Costa Rica and member countries
of the Organization for Economic Cooperation and Development (OECD). In calendar year 2000,
EPA responded to notices regarding 8,357 distinct waste streams.

        In F Y 2002, the compliance monitoring program will continue to work with states and tribes
to target areas  that pose risks to human health  or the  environment,  display  patterns  of

                                         IX-8

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noncompliance, or include disproportionately exposed populations.  Media-specific and industry
sector-based priorities have been established  for the national program through the Office of
Enforcement and Compliance Assurance's Memorandum of Agreement  2002/2003 guidance,
developed in conjunction with the Regional offices. These national priorities may include: Clean
Water Act (Wet Weather); Safe Drinking Water Act (Microbial Rules); Clean Air Act (New Source
Review/Prevention of Significant Deterioration, Petroleum Refinery Sectors and Air Toxics); and
RCRA (Permit Evaders).

       In FY 2002, EPA estimates that it will conduct 15,000 inspections targeted to areas that pose
risks  to  human  health  or the  environment, display  patterns of noncompliance or include
disproportionately-exposed populations. As part of this inspection target, the Agency plans investing
to perform 2,000 inspections under the lead provisions of the Toxic Substances Control Act (TSCA).

       Civil Enforcement. The Agency's civil enforcement program will address violations of
environmental laws and ensure that violators come into compliance with these laws and regulations.

       The civil  enforcement program supports the   Agency's environmental goals through
consistent and focused enforcement of all environmental statutes. The overarching goal of the civil
enforcement program is to protect public health and the environment, and therefore, targets its
actions based on health and environmental risk.  Further, it aims to level the economic playing field
by ensuring that violators do not realize an economic benefit from noncompliance, and seeks to deter
future violations.

       To accomplish these goals, the civil enforcement program is responsible for the development,
litigation and settlement of administrative and civil judicial cases against serious violators of priority
environmental laws.  The federal program will focus its resources on national environmental and
human health programs, transboundary pollutants, and major industrial violators.  The Federal
facilities enforcement program will continue to ensure that Federal  facilities and Government*
Owned-Contractor-Operated facilities conduct their activities in an environmentally sound manner
and comply with all applicable laws, regulations, permits and executive orders.

       In FY 2002, program management will provide direction to, set goals and priorities for, and
evaluate and review the national enforcement program. Enforcement staff will develop guidance and
policy for technical evaluations, investigations, and case development strategies which may include
the use of injunctive relief,  supplemental environmental projects and other civil penalties as
appropriate. Further, enforcement staff will participate in the development of, or revision to,
regulations and interpretive guidance.

       In F Y2001, the civil enforcement program developed newperformance measures. In addition
to measuring pollutant reductions and improvements in facility management practices, EPA will also
measure progress in reducing significant noncompliance recidivism in the Clean Air Act, Clean
Water Act, and Resource Conservation and Recovery Act programs.

       Criminal Enforcement. The criminal enforcement program is another important aspect of
the Agency's enforcement efforts. The criminal enforcement program brings to bear the Agency's

                                         IX-9

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most powerful  enforcement tool against the most significant environmental violations.   By
demonstrating that the regulated community will be held accountable for serious, willful statutory
violations in terms of both fines and jail sentences, the program acts to forcefully deter violations
of environmental laws and regulations in a way that civil judicial and administrative enforcement
rarely can do. EPA's special agents, located nationwide, will conduct criminal investigations,
develop information to support grand jury  inquiries and  decisions, and work with  other law
enforcement agencies to present a highly visible and effective force in the Agency's enforcement
strategy.  Cases are referred to the U.S. Attorney's Offices  of the Department of Justice for
prosecution, with special agents serving as key witnesses in these judicial proceedings. The criminal
enforcement program places particular emphasis on cooperation with state and local law enforcement
through participation in task forces and enhanced capacity  through specialized training and
community policing efforts.

       EPA's efforts to work more closely and cooperatively with industry are complemented by
the criminal enforcement program as the Agency sends a clear message to the regulated community
that those who choose to cooperate, in good faith, will reap the benefits of that partnership while
those whose noncompliance is distinguished by culpable conduct can expect the serious implication
of criminal investigation and prosecution. In FY 2002, EPA  estimates that it will conduct 400
criminal investigations targeted to areas that pose risks to human health or the environment, display
patterns of noncompliance or include disproportionately exposed populations.

       The National Enforcement Investigations  Center (NEIC)  provides specialized forensic
support for the nation's most complex civil and criminal enforcement cases and technical expertise
for non-routine Agency compliance efforts. To effectively support these programs, the NEIC must
maintain state-of-the-art skills and equipment, capable of dealing with an increasingly sophisticated
regulated community. On February 1,2001, the NEIC received accreditation which makes the NEIC
the only accredited forensics environmental center in the world. The NEIC Accreditation Standard
has been customized to cover the civil, criminal, and special program work conducted by the NEIC.
The Standard addresses  infrastructure items such as document control, records management,
procurement; facility environment control and security; equipment inventory, maintenance, and
calibration; and  training, competency evaluation, and proficiency testing.

       In FY 2002, the NEIC will continue to  develop emerging technologies in analytical
techniques. Efforts to stay at the forefront of environmental enforcement will include the refinement
of successful multi-media inspection approaches, use of customized lab methods to solve unusual
enforcement case problems, and further development of a computer forensic expertise for use in
seizure and recovery of data and in investigative support related to computers and data fraud.  The
Center's lab, field and information activities will continue to be  performed with the scientific
integrity necessary to withstand technical scrutiny and cross-examination, developing evidence
which meets all  legal requirements for successful prosecution of civil and criminal cases.

       The NEIC will provide technical support for the initiatives identified as FY 2002 priorities
in the civil program. The NEIC will support the Agency's  integrated compliance monitoring
program which  views the regulated community on a multimedia basis within the context of an
industrial sector or geographic area. Using screening and targeting methodologies developed at the

                                         IX-10

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NEIC, EPA inspectors will direct compliance monitoring at areas with the greatest potential for risk
reduction. The NEIC staff will also conduct on-site multimedia and process based inspections,
resulting in increased compliance by many of the nation's largest and most complex industries.
Through their field work,  the NEIC also evaluates the effectiveness  of EPA regulations and
recommends improvements as applicable.

Data System Modernization

       Reliable, comprehensive and up-to-date data systems are key to EPA's ability to effectively
target compliance monitoring at the highest priority  facilities  and  areas and to measure the
effectiveness of its enforcement activities.  The Agency will continue to maintain and support the
fourteen information systems that house national enforcement and compliance data with less than
5% down-time. Moreover, EPA will continue its effort to improve the quality of compliance and
enforcement data by developing Quality Management Plans for three of its data systems in FY 2002.

       In FY 2002, the Agency will continue its efforts in the phased  implementation of the
Integrated Compliance Information System (ICIS). ICIS will be a consolidated enforcement and
compliance information management  system that  will provide  a single definitive source of
information for the national enforcement and compliance assurance program. ICIS will consolidate
and streamline enforcement and compliance information that is  currently contained in fourteen
existing systems. This new system will reduce burden and duplication by providing a single source
for data entry, will improve public access to data, support the development of risk reduction
strategies, and will provide states and Regions with a modernized system to meet their program
management and accountability responsibilities. The Agency's modernization of the Permit
Compliance System, which serves the permitting and enforcement program needs of the National
Pollutant Discharge Elimination  System, will  be conducted  concurrently with  the phased
implementation of ICIS in FY 2002. In FY 2001, EPA intends to complete the ICIS development
phase and begin system testing for information overlapping, as well as complete the detailed design
for the Permit Compliance System modernization.

State. Tribal, and International Capacity Building

       A strong state and tribal enforcement and compliance assurance presence contributes to
EPA's long-term strategic plan objective to identify and reduce significant noncompliance in high
priority areas while maintaining a strong enforcement presence in all regulatory program areas. Most
of the Nation's environmental laws envision a strong role for state governments in implementing and
managing environmental programs. In F Y 2002, the enforcement and compliance assurance program
will increase  support  to  state agencies  implementing  authorized,  delegated,  or approved
environmental programs through a new grant program. Consistent with regulations and Agency
policy, EPA will provide an appropriate level of oversight and guidance  to states to ensure that
environmental regulations are fairly and consistently enforced across the Nation.
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       EPA works with Indian tribes on a government-to-government basis to identify enforcement,
compliance assistance, and capacity building issues affecting tribal lands. The Agency's goal is to
help tribes develop their own enforcement and compliance assistance programs so that they can
assume greater management of environmental programs in Indian Country.  In FY 2002, the
enforcement and compliance assurance program will continue to implement the Indian Program
Strategy which will direct federal enforcement, tribal enforcement, and compliance capacity-building
efforts. By monitoring and evaluating progress made, EPA will ensure that the plan's commitments
are met in a timely fashion.  These efforts will help implement the Agency-wide Indian Policy of
working with tribal governments as full partners to enhance protection of the public health and the
environment on tribal lands.

       The state  and tribal grant programs are designed to build environmental partnerships with
states and tribes and to strengthen their ability to address environmental and public health threats.
These threats include  contaminated drinking water, pesticides in food, hazardous waste, toxic
substances and air pollution. In FY 2002, the enforcement and compliance assurance program will
award state and tribal enforcement grants to assist in the implementation of a new grant program and
continued implementation of the 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. The enforcement component of RCRA state grants is also included in this objective.

       The  Agency will redirect  $25,000,000 to assist states  and tribes in enforcing the
       environmental laws delegated to their states. These funds  will allow them to take greater
       responsibility for enforcement of environmental laws and regulations.

•      Under the Pesticides Enforcement Grant program, EPA provides resources states and Indian
       tribes to conduct FIFRA compliance inspections and take appropriate enforcement actions,
       and implement programs for farm worker protection. The FY 2002 program will continue
       to address the  increased workload placed on the states as a result of the Food Quality
       Protection Act, The food safety program is almost entirely a state run program. States will
       use  these resources  to  increase their inspections of pesticides newly regulated by the
       legislation.

•      States receive toxic substances grant funding for compliance inspections of asbestos and
       PCBs and for  implementation of the state lead enforcement program.  The funds will
       complement other Federal program grants for building state capacity for lead abatement.

       EPA will also provide the States grant funding to inspect  federal, state, and local RCRA
       facilities  that store,  treat, or dispose of hazardous waste.  Inspections will emphasize
       compliance with facility-specific requirements  or interim status requirements. RCRA
       enforcement orders  and  supplemental  environmental  projects will  incorporate  waste
       minimization provisions where appropriate.
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       The Agency also provides single media enforcement grants to the states which are located
under other environmental goals supporting air and water programs.

       Meeting its objective of achieving the benefits of environmental requirements through an
enforcement presence requires EPA to effectively implement international commitments for
enforcement and compliance cooperation with other countries, especially those along the U.S.
border. Through such arrangements, EPA works to reduce environmental risks to U.S. citizens from
external sources of pollution, as well as to prevent or reduce the impact of pollution origination in
the United States.

Enforcement Training

       Training is an important aspect of state, local and tribal capacity building. The National
Enforcement Training  Institute (NET!) is mandated by the Pollution Prosecution Act to provide
environmental enforcement training nationally. In FY 2002, NETI will oversee the design of core
and specialized enforcement courses and their  delivery to lawyers, inspectors, civil and criminal
investigators and technical experts. Also, NET! will deliver 200 training classes and seminars. In
seeking to provide timely, targeted technical training courses to as wide an audience  as possible,
NETI will expand access to its program by building a training center on the Internet. "NETI Online"
will offer training to Federal, State, local and tribal enforcement professionals. The website will
provide the structure for developing and tracking individual training plans, as well as managing
NETI's training delivery processes. In addition, the Agency provides specialized training in criminal
environmental law enforcement at the Federal Law Enforcement Training Center (FLETC) in
Glynco, GA. FLETC is operated by the Department of the Treasury and was established to train law
enforcement personnel who carry firearms. The Agency has entered into an agreement with Treasury
to arrange  training in environmental criminal  investigations  for state,  local  and tribal law
enforcement professionals as well as EPA criminal enforcement staff. FLETC provides one of the
few  opportunities for state,  local  and tribal enforcement professionals to  obtain criminal
investigations  training.   The  Agency has initiated a new program known as Environmental
Community Oriented Policing  (ECOPS) to strengthen state and local environmental community
policing efforts through criminal and other types of enhanced training.
FY 20.02 Change from FY 2001 Enacted

EPM
•      (-$17,778,200, -169.8 FTE)  Reduction due to the redirection of resources to the new
       enforcement grant program. These resources have been redirected to the State and Tribal
       Assistance Grant appropriation to support the Agency's efforts to redirect enforcement
       responsibilities to the states.
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•      (-$2,769,800, -29.4 FTE)  The program reduced workyears and associated payroll from
       compliance monitoring, civil enforcement, and NEPPS/state and local partnerships in an
       effort to support the EPA's policy redirecting enforcement responsibilities to the states.

•      (+$11,851,300)  This increase reflects an increase in workforce costs.

S&T
•      (-$131,800, -1,4 FTE) Reduction due to the Agency's streamlining and efficiency efforts
       which

•   (+$323,900) This increase reflects an increase in workforce costs.

STAG
•      (+$25,000,000) Increase for new enforcement grant program. These resources will support
       the Agency's efforts to redirect enforcement responsibilities to the states.

Super&nd (-$1,104,000, -4.2 FTE)

•      (-$615,400, -4.0 FTE) Reduction due to the redirection of resources to the new enforcement
       grant program. These resources have been shifted to the State and Tribal Assistance Grant
       appropriation to support the Agency's efforts to redirect enforcement responsibilities to the
       states.


Annual Performance Goals and Performance Measures

Non-Compliance Reduction

In 2002     EPA will direct enforcement actions to maximize compliance and address environmental and
           human health problems; 75% of concluded enforcement actions will require environmental
           or human health improvements such as pollutant reductions and/or changes in practices at
           facilities.

In 2001     EPA will direct enforcement actions to maximize compliance and address environmental and
           human health problems; 75% of concluded enforcement actions will require environmental
           or human health improvements such as pollutant reductions and/or changes in practices at
           facilities.

In 2000     Deterred and reduced noncompliance and achieved environmental and  human health
           improvement. 74.9% of concluded enforcement actions required environmental or human
           health improvement, such as pollution reduction.

Performance Measures:                     FY1999    FY2000    FY2001    FY2002
                                       Actuals     Actuals     Estimate    Request

Percent of actions which require

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pollutant reductions                                       13.6                                 percent

Estimated pounds of pollutants
reduced (aggregate)                                       714                                 M pounds

Establish statistically valid noncompliance
rates or other indicators of noncompliance
for selected environmental problems.                        5                                    indicators

Establish baseline to measure percentage of
significant violators with reoccurring
significant violations within 2 years of returning
to compliance.                                            1                                    baseline

Establish baseline tp measure average length
of time for significant violators to return to
compliance or enter enforceable plans/
agreements                                               1                                    baseline

Produce report on the number of civil and
criminal enforcement actions initiated and
concluded.                                                1                                    Report

75% of concluded enforcement actions require
pollutant reductions and/or changes in facility
management or information practices, (core optional)                     75          75          Percent

Million pounds of pollutants reduced
(core optional)                                                        350         300         M Pounds

Increase or maintain existing compliance
rates or other indicators of compliance for
populations with established baselines, or
develop additional rates for newly selected
populations (core optional)                                             5           5           Populations

Reduce by 2 percentage points overall
the level of significant noncompliance
recidivism among CAA, CWA, and
RCRA programs from FY 2000 levels                                  2           2           PercentagePoint

Increase by 2 percent over FY 2000 levels
the proportion of significant non-complier
facilities under  CAA, CWA, and RCRA
which returned to compliance in less than
two years, (core required)                                              2           2           PercentagePoint

Produce a report on the number of civil
and criminal enforcement actions initiated
and concluded (core required)                                          1           1           Report
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Increase by 2% the concluded enforcement actions
having intended result of pollution reductions thru
process changes/handling of pollution or result in
improvements in facility & information management practices
fromFYOO.                                                          2                      Percent

Baseline:    Protecting the public and the environment from risks posed by violations of environmental
            requirements is basic to EPA's mission.  To develop a more complete picture of the results
            of the enforcement and compliance program, EPA has initiated a number of performance
            measures designed to  capture the  results of lowering the  timeline for significant non-
            compliers  to  return to compliance, reducing   noncompliance  recidivism rates, and
            improvements in facility process and/or management practices through behavioral changes.
            The baseline rates for  these measures were established in FYOO and the FY02 goal is to
            improve upon these rates.   These new measures will complement the traditional
            enforcement measures  of inspections and enforcement actions to provide a more complete
            picture of environmental results from the enforcement and compliance program.

Inspections/Investigations

In 2002     EPA  will  conduct  15,000 inspections, 400 criminal investigations,  and 200 civil
            investigations targeted  to areas that pose risks to human health or the environment, display
            patterns of non-compliance or include disproportionately exposed populations.

In 2001     EPA  will conduct  17,000  inspections, 450 criminal investigations,  and 250 civil
            investigations targeted  to areas that pose risks to human health or the environment, display
            patterns of non-compliance, or include disproportionately exposed populations.

In 2000     Conducted 20,123 inspections, 477 criminal investigations, and 660 civil investigations,
            15% of which were targeted at priority areas.

In 1999     We exceeded our goal to deter noncompliance by maintaining levels of field presence and
            enforcement actions,  particularly in  high  risk  areas and/or where  populations  are
            disproportionately exposed. In 1999, EPA conducted 21,410 (15,000 target) inspections and
            undertook  3,935 (2,600 target) enforcement actions.

Performance Measures:                        FY1999    FY2000     FY.2001    FY2002
                                            Actuals      Actuals     Estimate    Request

Number of EPA inspections                               20,123                              inspections

Percent of inspections and investigation
(civil and criminal) conducted at priority areas               15                                 percent

Number of EPA inspections conducted
(core required)                                                       17,000       15,000     Inspections

EPA Inspections                             21,410                                          Inspections

Number of Criminal Investigations                         477         450        400         Investigations

Develop a list of high priority facilities in

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Indian country for the enforcement and
compliance program.

Number of Civil Investigations

Percent of mutually agreed-upon high priority
facilities in Indian country will have been the
object of minimum core compliance
monitoring program.
            660
            250
            200
                                               list
            Investigations
                                               Percent
Baseline:    The compliance monitoring program works 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.  The number of inspections projected varies each
            year by the complexity of facilities targeted. In FY02, EPA will maintain its enforcement
            presence by conducting at least 15,000 inspections, 400 criminal investigations and 200 civil
            investigations. Due to the redirection of resources to the enforcement grant program, these
            levels have been reduced from the FYO1  targets.

Quality Assurance

In 2002     Maintain and improve  quality and accuracy of EPA's enforcement and compliance data to
            identify noncompliance and focus on human health and environmental problems.

In 2001     Maintain and improve  quality and accuracy of EPA's enforcement and compliance data to
            identify noncompliance and focus on human health and environmental problems.

In 2000     Maintained and improved quality and accuracy of enforcement and compliance assurance
            data.  Completed the  concept  and requirement phase of new Integrated Compliance
            Information System. Continued concept phase of Permit Compliance System modernization
            and began the design phase.

In 1999     We met our goal by targeting 7 (of 5 targeted) high priority areas through the MOA process
            for enforcement and compliance assistance and completing  2 (of 2 targeted) baseline data
            assessment in major databases, AFS  and DOCKET, needed to measure quality of key
            indicators of compliance.
Performance Measures:
Data system improvement tocapture changes to
98 base

Complete concept and begin design phase of
General Enforcement Mgt system (GEMS)

continue concept phase and begin design
phase of PCS modernization

Complete Phase I of Integrated Compliance
Information System (ICIS) development
(programming) and begin Phase II.
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
            30-Sep-2000
            30-Sep-2000
                       date
                       date
                                               Phase
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Complete Quality Management Plan (QMP)
project for additional data systems

Complete detailed design (development of
screens, prototypes) including a pilot NPDES
permitting desk model for Permit Compliance
System (PCS) system modernization.

Continue operation and maintenance/user
support of 14 information systems housing
national enforcement and compliance assurance
data with a minimum  of 95% operational
efficiency

Conduct four data analyses of environmental
problems in Indian Country using the American
Indian Lands Environ. Support Project (AILESP)
and the baseline assessment survey.

Begin development and system testing for
modernized Permit Compliance System
(PCS) system.

Conduct 4 analyses of environmental
problems in Indian Country using EPA's
baseline assessment survey.

Field test ICIS Phase I, retire DOCKET
system and complete design and development
of ICIS Phase II.
                        Data Systems
                        Data System
95
95
Percent
                        data analyses
                        Data System
                        Data Systems
            1
            Phase
Baseline:    EPA's ability to effectively target and measure effectiveness of its enforcement activities
            depends upon reliable and up-to-date data systems. In FY02, EPA's 14 data systems will
            continue to operate  at 95% or better operational efficiency.  In conjunction with the
            operation and maintenance of existing systems, EPA will continue its system modernizing
            efforts and improve data integration and consistency. Beginning in FY01, the Agency will
            conduct Quality Management Plans for three data systems and continue this target of three
            additional data systems in FY02.

Capacity Building

In 2002      Improve capacity of states, localities and tribes to conduct enforcement and compliance
            programs.  EPA will provide training as well as assistance with state and tribal inspections
            to build capacity, including implementation of the inspector credentials program for tribal
            law enforcement personnel.

In 2001      Improve capacity of states, localities and tribes to conduct enforcement and compliance
            programs.  EPA will provide training as well as assistance with state and tribal inspections
            to build capacity, including implementation of the inspector credentials program for tribal
            law enforcement personnel.
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In 2000     Improved capacity of states, localities and tribes to conduct enforcement and compliance
            assurance programs. Conducted 713 EPA-assisted inspections and delivered 154 training
            classes/seminars to states/localities and tribes.

In 1999     We exceeded (by 135) our goal of providing specialized assistance and training courses to
            state and tribal officials to enhance the effectiveness of their programs.
Performance Measures:
Specialized assistance & training

Number of EPA-assisted inspections to
build capacity

Number of EPA training classes/ seminars
delivered to states, localities and tribes to
build capacity

Conduct EPA-assisted inspections to
build capacity

The National Enforcement Training
Institute will train Tribal personnel.

The National Enforcement Training
Institute will provide tribal governments
with 50 computer-based training
(CBT) modules.

Total number of state and local
students trained

The National Enforcement Training
Institute will train Tribal personnel.
                                 FY 1999
                                 Actuals

                                 218
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
                                            713
                                             154
            220
                                                         150
                                                         105
            200
                        150
                                                        50
                                                        4900
                        50
                        4900
                                                                    95
            Courses


            inspections



            classes


            Inspections


            personnel




            Training module


            Students


            Personnel
Baseline:    Training is an important aspect of state, local and tribel capacity building.  The National
            Enforcement Training Institute (NETI)  is mandated in the Pollution Prosecution Act to
            provide enforcement training nationally.  In  FY02, NETI will provided 200 training
            classes/seminars as well as expand access to its training by building a training center on the
            Internet.  EPA will conduct 150 assisted inspections to build capacity.

International Enforcement

In 2002
In 2001
Ensure compliance with legal requirements for proper handling of hazardous waste imports
and exports.

Ensure compliance with legal requirements for proper handling of hazardous waste imports
and exports.
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In 2000     Ensured compliance with legal requirements for hazardous waste exports and gained
           enforcement and compliance cooperation with other countries, especially along U.S. borders
           (Mexico/Canada).

In 1999     We missed our target by properly handling 1,539 of the targeted 1,600 import notifications
           due to a decline in hazardous waste imports and  increased capacity in Europe to handle
           waste. In addition, we changed our goal and measure in FY 2000 to more accurately reflect
           program achievements.
Performance Measures:
Import / Export Notifications

Ensure compliance with legal requirements
by assuring that hazardous waste exports
from the U.S. are properly handled.

Review and respond to 100% of the notices for
transboundary movement of hazardous wastes,
ensuring their proper management in accordance
with international agreements

Ensure proper handling of 200,000 tons of
hazardous waste exports                    n/a
FY1999
Actuals

1539
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request
           1584
                                Notifications
                                notices
                     100
                      100
                     Percent
                                           tons
Baseline:    In FY02, EPA will review and respond to 100 percent of the notices for transboundary
           movement of hazardous waste, ensuring that these wastes are properly  handled in
           accordance with international agreements and the Resource Conservation and Recovery Act
           regulations.
Verification and Validation of Performance Measures

Performance Measure: 75% of concluded enforcement actions identify pollutant reductions
and/or changes in facility management or information practices.

Performance Database: Docket - tracks EPA civil, judicial and enforcement actions.

Data Source: The data for Docket is generated through the use of the Case Conclusion Data Sheet
(CCDS), which is prepared by Agency staff after the conclusion of each criminal and civil (judicial
and administrative) enforcement action. The CCDS was implemented by EPA in 1996 and captures
the relevant information on the results and environmental benefits of the concluded enforcement
cases.  The information generated through the CCDS is used to track progress for several of the
performance measures. The CCDS form consists of 27 specific questions which, when completed,
describe specifies of the case; the facility(s); information  on how the case was concluded; the
compliance actions required to be taken by the defendant(s); the costs involved; information on any
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Supplemental Environmental Project to be undertaken as part of the settlement; the amounts and
types of any penalties assessed; and any costs recovered through the action, if applicable. The CCDS
requires that the staff identify if the facility/defendant, through injunctive relief, must: (1) reduce
pollutants; and (2) improve management practices to curtail, eliminate or better monitor and handle
pollutants in the future.  For actions which result in pollution reductions, the staff estimate the
amounts of pollution reduced over the lifetime of the enforcement action. There are established
procedures for the staff to calculate, by statute, e.g. Clean Water Act, the pollutant reductions or
eliminations.  The procedure first entails the staff determining the difference between the current
"out of compliance" concentration of the pollutant(s) and the  post enforcement action "in
compliance" concentration. This difference is then converted to mass per time using the flow or
quantity information derived during the case.

QA/QC Procedures: Procedures are in place for both the CCDS and for Docket entry. There are
separate CCDS  Calculation and Completion Checklists required to be filled out at the time the
CCDS is completed.

Data Quality Review: Information contained in the CCDS and Docket are reviewed by Regional
and Headquarters staff for completeness and accuracy.

Data Limitations: EPA has evaluated CCDS and noted several areas affecting data quality and has
taken steps to address them. The problem areas included: a lack of consistency in the time frames
used in reporting pollutant reductions from a case, and missing and misreported pollutant reduction
data.  One of the principal reasons for the problems identified was a lack of adequate guidance to
staff on the preparation of the CCDS. The pollutant reductions or eliminations reported through the
CCDS are estimates of what will be achieved if the defendant carries out the requirements of the
settlement.
New & Improved Data or Systems: In November 2000, EPA completed a comprehensive guidance
package on the preparation  of the Case Conclusion Data Sheet.  This guidance, issued to
Headquarters and Regional managers and staff, was made available in print and in CD-ROM. Both
versions contain work examples to ensure better calculation of the amounts of pollutants reduced or
eliminated through concluded enforcement actions. EPA is also planning to host CCDS training in
each of its ten regional offices during FY 2002.

Performance Measure: Million pounds of pollutants reduced

Performance Database: Docket - tracks EPA civil, judicial and enforcement actions.

Data Source: The data for Docket is generated through the use of the Case Conclusion Data Sheet
(CCDS), which is prepared by Agency staff after the conclusion of each criminal and civil (judicial
and administrative) enforcement action. The CCDS was implemented by EPA in 1996 and captures
the relevant information on the results and environmental benefits of the, concluded enforcement

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cases.  The information generated through the CCDS is used to track progress for several of the
performance measures. The CCDS form consists of 27 specific questions which, when completed,
describe specifics of the case; the facility(s); information on how the case was concluded; the
compliance actions required to be taken by the defendant(s); the costs involved; information on any
Supplemental Environmental Project to be undertaken as part of the settlement; the amounts and
types of any penalties assessed; and any costs recovered through the action, if applicable. The CCDS
requires that the staff identify if the facility/defendant, through injunctive relief, must: (1) reduce
pollutants; and (2) improve management practices to curtail, eliminate or better monitor and handle
pollutants in the future.  For actions which result in pollution reductions, the staff estimate the
amounts of pollution reduced over the lifetime of the enforcement action. There are  established
procedures for the staff to calculate, by statute, e.g. Clean Water Act, the pollutant reductions or
eliminations.  The procedure first entails the staff determining the difference between the current
"out of compliance" concentration  of the pollutant(s) and the post enforcement  action "in
compliance" concentration.  This difference is then converted to mass per time using  the flow or
quantity information derived during the case.

QA/QC Procedures: Procedures are in place for both the CCDS and for Docket entry. There are
separate CCDS Calculation and Completion Checklists required to be filled out at the time the
CCDS is completed.

Data Quality Review: Information contained in the CCDS and Docket are reviewed by Regional
and Headquarters staff for completeness and accuracy.

Data Limitations: EPA has evaluated CCDS and noted several areas affecting data quality and has
taken steps to address them. The problem areas included: a lack of consistency in the time frames
used in reporting pollutant reductions from a case, and missing and misreported pollutant reduction
data. One of the principal reasons for the problems identified was a lack of adequate guidance to
staff on the preparation of the CCDS.  The pollutant reductions or eliminations reported through the
CCDS are estimates of what will be achieved if the defendant carries out the requirements of the
settlement.
New & Improved Data or Systems: In November 2000, EPA completed a comprehensive guidance
package on the preparation of the  Case Conclusion Data Sheet.  This guidance, issued to
Headquarters and Regional managers and staff, was made available in print and in CD-ROM.  Both
versions contain work examples to ensure better calculation of the amounts of pollutants reduced or
eliminated through concluded enforcement actions. EPA is also planning to host CCDS training in
each of its ten regional offices during FY 2002.

Performance Measure: Increase or maintain existing compliance rates or other indicators of
compliance for populations with established baselines, or  develop additional rates for newly
selected populations.

Performance Databases: PCS (Permit Compliance System)  tracks  National Pollutant Discharge
Elimination  System  (NPDES)  permit and  enforcement   actions, reporting  and  scheduling

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requirements. AFS (Air Facility Sources System) captures emission, compliance and permit data for
major stationary sources of air pollution. RCRAInfo (Resource Conservation and Recovery Act
Information System) supports permit, compliance and corrective action activities carried out by the
hazardous waste handlers.

Data Source: EPA regional offices, delegated states

QA/QC  Procedures: All  of the  systems have  been developed per Office of Information
Management  Lifecycle Management Guidance, which includes data validation processes, internal
screen audit checks and verification, system and user documents, data quality audit reports, third
party testing reports, and detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IO reports in 1997 and 1998 highlighted states' problems with
identifying and reporting Clean Air Act significant violators, impairing EPA's ability to assess non-
compliance. EPA issued High Priority Violator Guidance to improve tracking of sources of
violations. As a result of the reports, EPA has enhanced oversight and headquarters' outreach to
regions, states, locals. (See Major Management Issues)

Data Limitations:. For all systems, there are concerns about quality and completeness of data and
the ability of existing systems to meet data needs.  Incompatible database structures/designs and
differences in data definitions impede integrated analyses. There are incomplete data available on
the universe of regulated facilities because not all are inspected/permitted. Further complicating the
issue, significant violator definitions changed  for the RCRA  program in 1996 and for the Air
program in FY99. These differences within programs make long term data comparison impractical.

New & Improved Data or Systems: PCS modernization is currently underway. EPA is preparing
Quality  Management Plans  (data quality objectives, quality  assurance project plans,  baseline
assessments) for all major systems. A new Integrated Compliance Information System (ICIS) will
support core program needs  and consolidate and streamline existing systems. A pilot project is
currently underway to develop statistically-valid compliance rates for selected universes of regulated
facilities. Also, a National Performance Measure Strategy project on the impact of EPA strategies
on recidivism focuses attention on better compliance assurance targeting i.e. monitoring, compliance
assistance, incentives and enforcement.

Performance Measure:  Reduce by 2  percentage points  overall the level of significant
noncompliance  recidivism, among the  Clean Air Act, Clean Water Act, and  Resource
Conservation and Recovery Act programs from FY 2000 levels.

Performance Databases: PCS (Permit Compliance System) tracks National Pollutant Discharge
Effluent System permit and enforcement actions, reporting and scheduling requirements. AFS (Air
Facility Sources System) captures emission, compliance and permit data for major stationary sources
of air pollution  RCRAInfo (Resource Conservation and Recovery Information System) supports
permit, compliance and corrective action activities.carried out by hazardous wasste handlers.

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Data Source: EPA regional offices, and delegated states.

QA/QC Procedures: All the systems have been developed per Office of Information Management
Lifecycle Management Guidance, which includes data validation processes, internal screen audit
checks and verification, system and user documents, data quality audit reports, third party testing
reports, and detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IG reports in 1997 and 1998 highlighted states' problems with
identifying and reporting Clean Air Act significant violators, impairing EPA's ability to assess non-
compliance. EPA issued  High Priority Violator Guidance  to  improve tracking  of sources of
violations. As a result of the reports, EPA has enhanced oversight and headquarters' outreach to
regions, states, locals. (See Major Management Issues)

Data Limitations: For all systems, there are concerns about quality and completeness of data and
the ability of existing systems to meet data needs. Incompatible database structures/designs and
differences in data definitions impede integrated analyses. There are incomplete data available on
the universe of regulated facilities because not all are inspected/permitted. Further complicating the
issue, significant violator definitions changed for the RCRA program in  1996 and for the Air
program in FY99. These differences within programs make long term data comparison impractical.

New & Improved Data or Systems: PCS modernization is currently underway. EPA is preparing
Quality Management Plans (data  quality objectives, quality assurance project plans, baseline
assessments) for all major systems. A new Integrated Compliance Information System (ICIS) will
support core program needs and consolidate and streamline existing systems. A pilot project is
currently underway to develop statistically-valid compliance rates for selected universes of regulated
facilities. Also, a National Performance Measure Strategy project on the impact of EPA strategies
on recidivism focuses attention on better compliance assurance targeting i.e. monitoring, compliance
assistance, incentives and enforcement.

Performance Measure: Increase by 2 percentage points over FY 2000 levels the proportion of
significant noncomplier facilities under the Clean Air Act, Clean Water Act, and Resource
Conservation and Recovery Act which returned to full physical compliance in less than two
years

Performance Databases: PCS (Permit Compliance System) tracks National Pollutant Discharge
Effluent System permit and enforcement actions, reporting and scheduling requirements. AFS (Air
Facility Sources System) captures emission, compliance and permit data for major stationary sources
of air pollution. RCRIS (Resource Conservation and Recovery System) supports permit, compliance
and corrective action activities carried out by hazardous waste handlers.

Data Source: EPA regional offices, and delegated states
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QA/QC Procedures: All the systems have been developed per Office of Information Management
 Lifecycle Management Guidance, which includes data validation processes, internal screen audit
checks and verification, system and user documents, data quality audit reports, third party testing
reports, and detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IG reports in 1997 and 1998 highlighted states' problems with
identifying and reporting Clean Air Act significant violators, impairing EPA's ability to assess non-
compliance.  EPA issued  High Priority Violator Guidance  to improve tracking of sources  of
violations. As a result of the reports, EPA has enhanced oversight and headquarters' outreach to
regions, states, locals. (See Major Management Issues)

Data Limitations: For all systems, there are concerns about quality and completeness of data and
the ability of existing systems to meet data needs. Incompatible database structures/designs and
differences in data definitions impede integrated analyses. There are incomplete data available on
the universe of regulated facilities because not all are inspected/permitted. Further complicating the
issue, significant violator definitions changed for the RCRA program in 1996  and for the Air
program in FY99. These differences within programs make long term data comparison impractical

New & Improved Data or Systems: PCS modernization is currently underway. EPA is preparing
Quality Management Plans (data quality  objectives, quality assurance project plans, baseline
assessments) for all major systems.  A new Integrated Compliance Information System (ICIS) will
support core program needs and consolidate and streamline  existing systems. A pilot project is
currently underway to develop statistically-valid compliance rates for selected universes of regulated
facilities. Also a National Performance Measure Strategy project on the impact of EPA strategies
on recidivism focuses attention on better compliance assurance targeting i.e. monitoring, compliance
assistance, incentives and enforcement.

Performance Measure: Produce a report on the number  of civil and criminal enforcement
actions initiated and concluded.

Performance Database: Output measure.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems". None
                                        IX-25

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Performance Measure: Number of EPA inspections conducted.

Performance Databases: IDEA (Integrated Data for Enforcement Analysis) integrates data from
major enforcement and compliance  systems, such as the Permit Compliance System (PCS), Air
Facilities System (AFS), Resource Conservation and Recovery Act Information System (RCRAInfo),
and Emergency Response Notification System (ERNS).

Data Source: EPA Regional offices.

QA/QC Procedures: All the systems have been developed per Office of Information Management
Lifecycle Management Guidance, which includes data validation processes, internal screen audit
checks and verification, system and user documents, data quality audit reports, third party testing
reports, and detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IG reports in 1997 and  1998 highlighted states' problems with
identifying and reporting Clean Air Act significant violators, impairing EPA's ability to assess non-
compliance.  EPA issued High Priority Violator Guidance to improve tracking  of sources of
violations. As a result  of the reports, EPA has enhanced oversight and headquarters' outreach to
regions, states, locals, (See Major Management Issues)

Data Limitations:  For all systems, there are concerns about quality and completeness of data and
the ability of existing systems to meet data needs.  Incompatible database structures/designs and
differences in data definitions impede integrated analyses.  There are incomplete data available on
the universe of regulated facilities because not all are inspected/permitted. In addition, the target is
based on a preliminary estimate of the impact  of redirecting resources to the state and tribal
enforcement grant program.

New & Improved Data or Systems: PCS modernization is currently underway. EPA is preparing
Quality Management Plans (data quality objectives,  quality assurance project plans, baseline
assessments) for all major systems. A new Integrated Compliance Information System (ICIS) will
support core program  needs and consolidate and streamline existing systems. A pilot project is
underway on developing statistically-valid compliance rates.

Performance Measure: Number of criminal investigations

Performance Databases: IDEA (Integrated Data for Enforcement Analysis) integrates data from
major enforcement and compliance  systems such as, the Permit Compliance System (PCS), Air
Facilities System (AFS), Resource Conservation and Recovery Act Information System (RCRAInfo),
and Emergency Response Notification System (ERNS).

Data Source: EPA  Regional offices.
                                        IX-26

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QA/QC Procedures: All the sy stems have been developed per Office of Information Management
Lifecycle Management Guidance, which includes data validation processes, internal screen audit
checks and verification, system and user documents, data quality audit reports, third party testing
reports, and detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IG reports in 1997 and 1998 highlighted states' problems with
identifying and reporting Clean Air Act significant violators, impairing EPA's ability to assess non-
compliance.  EPA issued  High Priority Violator Guidance to  improve tracking of sources  of
violations. As a result of the reports, EPA has enhanced oversight and headquarters' outreach to
regions, states, locals. (See Major Management Issues)

Data Limitations: For all systems, there are concerns about quality and completeness of data and
the ability of existing systems to meet data needs. Incompatible database structures/designs and
differences in data definitions impede integrated analyses. There are incomplete data available on
the universe of regulated facilities because not all are inspected/permitted.  In addition, the target is
based on a preliminary estimate of the impact of redirecting resources to the state and tribal
enforcement grant program.

New & Improved Data or Systems:  PCS modernization is currently underway. EPA is preparing
Quality Management Plans (data  quality objectives, quality assurance project plans, baseline
assessments) for all major systems. A new Integrated Compliance Information System (ICIS) will
support core program needs and consolidate and streamline existing systems. A pilot project is
underway on developing statistically-valid compliance rates.
Performance Measure: Number of civil investigations

Performance Databases: IDEA (Integrated Data for Enforcement Analysis) integrates data from
major enforcement and compliance systems such as, the Permit Compliance System (PCS), Air
Facilities System (AFS), Resource Conservation and Recovery Act Information System (RCRAInfo),
and Emergency Response Notification System (ERNS).

Data Source: EPA Regional offices.

QA/QC Procedures: All the systems have been developed per Office of Information Management
Lifecycle Management Guidance, which includes data validation processes,  internal screen audit
checks and verification, system and user documents, data quality audit reports, third party testing
reports, and detailed report specifications for showing how data are calculated.

Data Quality Review:  AFS: EPAIG reports in 1997 and 1998 highlighted states' problems with
identifying and reporting Clean Air Act significant violators, impairing EPA's ability to assess non-
compliance.  EPA issued High Priority Violator Guidance to improve tracking of sources of
                                        IX-27

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violations. As a result of the reports;, EPA has enhanced oversight and headquarters' outreach to
regions, states, locals. (See Major Management Issues)

Data Limitations:  For all systems, there are concerns about quality and completeness of data and
the ability of existing systems to meet data needs. Incompatible database structures/designs and
differences in data definitions impede integrated analyses. There are incomplete data available on
the universe of regulated facilities because not all are inspected/permitted.  In addition, the target is
based on a preliminary estimate of the  impact of redirecting resources to the state and tribal
enforcement grant program.

New & Improved Data or Systems: PCS modernization is currently underway. EPA is preparing
Quality  Management Plans (data quality objectives, quality assurance  project plans, baseline
assessments) for all major systems. A new Integrated Compliance Information System (ICIS) will
support  core program needs and consolidate  and streamline existing systems. A pilot project is
underway on developing statistically-valid compliance rates.

Performance Measure: Complete Quality Management Plan (QMP) project for additional data
systems.

Performance Database: Output measure; internal tracking of measure.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None


Performance Measure: Field test Integrated Compliance Information System (ICIS) Phase I,
retire Docket system and complete design and development of ICIS phase II.

Performance Database: Output measure. No database.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None


                                        IX-28

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Data Limitations: None

New & Improved Data or Systems: None


Performance Measure: Continue operation and maintenance/user support of 14 information
systems housing national enforcement and compliance assurance data with a minimum of 95%
operational efficiency.

Performance Database: No database; internal tracking of measure.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None

Performance Measure: Begin the development and system testing of a modernized Permits
Compliance System (PCS)

Performance Database: No database; internal tracking of measure.

Data Source: None

QA/QC Procedures: Contained within the project design

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None


Performance Measure: Conduct EPA-assisted inspections to build capacity.

Performance Database: Output measure; internal Regional tracking system.

Data Source: Internal Regional tracking system.


                                      IX-29

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QA/QC Procedures: Regional and HQ managers check information to confirm accuracy.

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None


Coordination with Other Agencies

      The Enforcement and Compliance  Assurance program coordinates closely  with the
Department of Justice (DO J) on all enforcement matters. In addition, the program coordinates with
other agencies on specific environmental issues as described below.

      The RCRA Enforcement and Compliance Monitoring program coordinates with the National
Accident Investigation Board, Occupational Safety and Health Administration, and Agency for Toxic
Substances and Disease Registry in preventing  and responding to accidental releases and
endangerment situations; and with the Bureau  of Indian Affairs on tribal issues relative to
compliance and enforcement of underground storage tank and RCRA Subtitle C requirements.

      The Water Enforcement and Compliance Monitoring program coordinates with the  U.S.
Army Corps of Engineers on wetlands. Moreover, due to changes in the Food Security Act, the U.S.
Department of Agriculture/Natural Resources Conservation Service (USDA/NRCS) has a major role
in the determination of whether areas on agricultural lands meet the definition of wetlands and are
therefore regulated under the Clean Water Act. Civil Enforcement coordinates with USDA/NRCS
on these issues also. Finally, the program coordinates closely with the Department of Agriculture
on the implementation of the Unified National Strategy for Animal Feedlot Operations.

      The Toxics and Pesticides Enforcement and Compliance Monitoring program coordinates
with USDA on food safety issues arising from the misuse of pesticides, and shares joint jurisdiction
with Federal Trade Commission (FTC) on pesticide labeling and advertising. EPA and the Food and
Drug Administration (FDA) share jurisdiction over general purpose disinfectants used on non-critical
surfaces and some dental and medical equipment surfaces (e.g., wheelchairs). Finally, the Agency
has entered into a Memorandum of Understanding with the Department of Housing and Urban
Development  concerning lead poisoning.

      The Criminal Enforcement program coordinates with other federal law enforcement agencies
(i.e. FBI, Customs, Treasury,  U.S. Coast Guard,  DOJ) and with  state and local law enforcement
organizations  in the investigation and prosecution of environmental crimes. EPA is also actively
working with DOJ to establish task forces which bring together federal, state and local law
enforcement organizations to address environmental crimes. In addition, the National Enforcement
Training Institute has an Interagency  Agreement with the Department of Treasury to provide


                                        IX-30

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specialized criminal environmental training to federal, state, local, and tribal law enforcement
personnel at the Federal Law Enforcement Training Center (FLETC) in Glynco, GA. NET! also
coordinates with four state associations who provide training for state and local officials.

       Under Executive Order 12088, EPA is directed to provide technical assistance to other
Federal agencies to help ensure their compliance with all environmental laws. The Federal Facility
Enforcement  Program coordinates with other Federal  agencies, states,  and local and  tribal
governments to ensure compliance by federal agencies with all environmental laws.

       The Civil Enforcement and Compliance Monitoring programs work closely with the states
and tribes.  States perform the vast majority of inspections and enforcement actions.  Most EPA
statutes envision a partnership between EPA and the states under which EPA develops national
standards and policies and the states implement the program under authority delegated by EPA. If
a state elects not to take delegation of a program, EPA has a mandatory duty to implement that
program in the state. Historically, the level of delegation has increased as programs mature and state
capacity has expanded, and many of the key environmental programs are approaching full delegation.
EPA will increase its effort to  coordinate  with states  on training and capacity building and on
enforcement.

       EPA works directly with Canada and Mexico bilaterally and in the trilateral Commission for
Environmental Cooperation (CEC). EPA's border activities require close coordination with the U.S.
Customs Service, the Fish and Wildlife Service, the  Department of Justice,  and the States of
Arizona, California, New Mexico, and Texas.
Statutory Authorities

Resource Conservation and Recovery Act sections 3007, 3008, 3013, and 7003 (42 U.S.C. 6927,
6928, 6934, 6973)

Comprehensive Environmental Response, Compensation, and Liability Act sections 106,107,109,
and 122 (42 U.S.C. 9606, 9607, 9609, 9622)

Clean Water Act (CWA) sections 308, 309, and 311 (33 U.S.C. 1318, 1319, 1321)

Safe Drinking Water Act sections 1413,1414,1417,1422,1423,1425,1431,1432,1445 (42 U.S.C.
300g-2, 300g-3, 300g-6, 300h-l, 300h-2, 300h-4, 300i, 300i-l, 300J-4)

Clean Air Act sections 113,114, and 303 (42 U.S.C. 7413, 7414, 7603)

Toxic Substances Control Act (TSCA) sections 11,16, and 17 and TSCA Titles II and IV (15 U.S.C.
2610, 2615, 2616,2641-2656, 2681-2692)
                                        IX-31

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Emergency Planning and Community Right-to-Know Act sections 325 and 326 (42 U.S.C. 11045,
11046)

Federal Insecticide, Fungicide, and Rodenticide Act sections 8, 9, 12, 13, and 14 (7 U.S.C. 136f,
136g, 136j, 136k, 1361)

Ocean Dumping Act sections 101, 104B, 105, and 107 (33 U.S.C. 1411,1414B, 1415, 1417)

North American Agreement on Environmental Cooperation

1983 La Paz Agreement on US/Mexico Border Region

National Environmental Policy Act (NEPA) section 102(f)

Pollution Prosecution Act of 1990 (42 U.S.C. section 4321 note)
                                       IX-32

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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

         A Credible Deterrent to Pollution  and Greater Compliance with the Law


Objective #2: Promote Compliance Through  Incentives and Assistance

       EPA and  its state,  tribal, and local partners will promote the regulated  community's
compliance with environmental requirements  through voluntary compliance  incentives and
assistance programs.
                                   Resource Summary
                                  (Dollars in thousands)
                                         FY 1999
                                         Enacted
           FY 2000
           Actual
           FY 2001
           Enacted
           FY 2002
           Request
Promote Compliance Through Incentives
and Assistance.

    Environmental Program & Management
$42,870.5
$40,378.0
$50,092.4
$52,528.9
$48,039.8      $49,925.2
$54,563.2
             $52,077.9
    State and Tribal Assistance Grants

    Hazardous Substance Superfund

       Total Workyears
 $2,214.2       $1,491.3      $2,209.3      $2,209.3

  $278.3        $561.3        $394.4       $276.0
   443.7
   438.5
   423.3
                                     Key Programs
                                  (Dollars in thousands)
   420.0

Project XL
Common Sense Initiative
Compliance Assistance and Centers
Compliance Incentives
FY 1999
Enacted
$2,514.7
$853.8
$18,426.5
$5,342.7
FY 2000
Enacted
$2,635.4
$448.6
$22,549.7
$5,195.7
FY 2001
Enacted
$0.0
$0.0
$24,579.9
$10,433.5
FY 2002
Request
$0.0
$0.0
$26,047.9
$10,175.8
                                          IX-33

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                                            FY1999     FY2000     FY2001      FY2002
                                            Enacted     Enacted     Enacted      Request
NEPA Implementation

State Toxics Enforcement Grants

Public Access

Rent, Utilities and Security

Administrative Services

Regional Management
$9,269.5      $9,901.4     $11,081.4     $11,670.9

$2,214.6      $2,214.2      $2,209.3      $2,209.3

   $0.0         $0.0       $179.3         $0.0

   $0.0      $3,596.3      $3,326.7      $3,679.6

 5248.0       $743.6       $677.2       $688.8
   $0.0
$235.8
$406.5
$321.7
FY 2002 Request

       The enforcement and compliance assurance program uses voluntary compliance incentives
and assistance tools to increase compliance with regulatory requirements and reduce adverse public
health and environmental  problems.  By providing compliance incentives to the regulated
community, the Agency motivates and enhances the capacity of the regulated community to fully
comply with the law and to voluntarily and promptly disclose violations before they come to the
attention of the government.

       The Agency also provides compliance assistance to the regulated community. By providing
clear  and consistent  descriptions of regulatory requirements, EPA assures  that  the community
understands its obligations.  Compliance assistance can also help regulated  industries find cost-
effective ways to comply with environmental requirements through the use of pollution prevention
and innovative technologies.

       In FY 2002 the Agency will continue to carry out its responsibilities  under National
Environmental Policy Act (NEPA), which requires that Federal agencies consider the environmental
consequences of their activities.  EPA prepares  NEPA environmental reviews for its proposed
actions, and under §309 of the Clean Air Act and NEPA, EPA reviews major actions taken by other
federal agencies to ensure that adverse environmental effects are identified and either eliminated or
mitigated.

Compliance Incentives

       The program will continue to implement EPA's Audit/Self-Policing Policy as a core element
of the enforcement and compliance assurance program.   EPA developed its Audit/Self-Policing
Policy in 1995 to encourage corporate audits and subsequent correction of self-discovered violations,
and to provide a uniform enforcement response toward disclosures of violations.  Under the Audit
                                         IX-34

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Policy,  violations are discovered  through voluntary environmental audits  or a compliance
management system, and are promptly disclosed and expeditiously corrected. EPA will not seek
gravity-based penalties (such as punitive aspect of penalties, or jail time a polluter could receive for
.not complying with the environmental laws), and will generally not recommend prosecution against
the regulated entity, for disclosures that meet Audit Policy requirements. EPA will reduce gravity-
based penalties by 75% for violations that are voluntarily discovered, and are promptly disclosed and
corrected, even if not found through a formal audit or compliance management system. The Policy
also  restates EPA's long-held policy and practice to  refrain from using corporate  prepared
environmental audit reports as a basis for enforcement actions.

       As of March 1,2001 approximately 1,150 companies have disclosed potential violations at
5,400 facilities. EPA is currently working on many efforts to encourage corporate self-disclosures,
including efforts in the telecommunications, petroleum, and iron and steel industries.  The Agency
will continue to expand use of the Audit Policy through aggressive outreach to particular industries.
EPA is particularly interested in encouraging disclosures at multiple facilities owned by the same
regulated entity  because such disclosures allow regulated  entities to review their operations
holistically, benefit the environment, and effectively leverage resources of the Agency.

       The  EPA Policy on Compliance Incentives for  Small  Business is intended to promote
environmental compliance among small businesses by providing them with special incentives to
participate in compliance assistance programs or to conduct environmental audits and then promptly
correct violations.  EPA has  been working with stakeholders to modify the policy to encourage
greater participation. As part of its 2002 marketing and outreach activities for this approach, EPA
will work with small business compliance assistance providers to develop tools useful to small
businesses in understanding applicable environmental requirements and conducting compliance
audits.

       In FY 2002 the Compliance Incentives program will continue to evaluate the effectiveness
of environmental management systems (EMS) for improving compliance and  environmental
performance. The results of this evaluation will provide the program with a better understanding of
the effectiveness of EMS in relation to compliance. The program will begin to promote the use of
EMS to address known compliance and performance problems. To this end, EPA will develop
assistance tools, such as training or "best practices" manuals.

       The  enforcement and compliance assurance program will  also  continue  to  work on
implementing the first tier of the two-tiered National Environmental Performance Track program.
The program is designed to recognize facilities that have consistently met their legal requirements,
implemented environmental  management  systems  (EMS),  and made tangible  environmental
performance improvements. Entry criteria include showing established implementation of an EMS,
presenting a record of continued compliance and certifying to current compliance, demonstrating
specific environmental achievements and committing to future improvements, and committing to
public outreach and annual performance reporting  (including summaries of compliance  audit
findings). Incentives for participation include Agency recognition, lowered priority for routine


                                         IX-35

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inspection targeting, access to  Audit Policy penalty mitigation and recognition of good faith
participation in the program in any discretionary penalty assessment, as well as programmatic
benefits still under development. The enforcement and compliance program will also continue to
participate in the development of the program's second tier, the Stewardship Track, which will be
designed to recognize broader and higher levels of environmental performance.

       EPA's  printing sector project (Print STEP) encourages the incorporation  of pollution
prevention practices into everyday work processes; improves access to data for all interested parties;
reduces transaction costs associated with the printing process; increases regulatory flexibility; and
promotes meaningful community involvement.  The protect team designed an alternative permit
system that is  expected to result in reduced emissions, greater operational flexibility, enhanced
public participation and lower transaction costs.  Pilots of the approach were initiated in three states
during 2000 and are expected to continue during 2002.

       The enforcement and compliance assurance program will also  continue to participate in
Project XL (excellence in Leadership) projects, projects under the EPA/state regulatory innovation
agreement, and other reinvention partnerships. The enforcement program will focus on ensuring
these projects are legally enforceable where necessary, and provide accountability and transparency
for participants (including Federal and non-Federal facilities).   The program will also assist in
verifying and evaluating project results.

Compliance Assistance

       The program provides information and technical assistance to the regulated community to
increase  its understanding of all statutory and  regulatory environmental requirements, thereby
reducing risk to human health  and the environment and gaining measurable improvements in
compliance. To support improving compliance in specific industrial and commercial sectors or with
certain regulatory  requirements, the program will continue to develop strategies and compliance
assistance tools and provide these to the regulated community. Compliance tools developed range
from plain-language guides to comprehensive sector-based documents (such as the Sector Notebooks
that  include information on industry-specific manufacturing processes and pollution issues) to
statute-based environmental audit protocol manuals to fact sheets, checklists and newsletters.

       Moreover, in FY 2002, the program will continue with activities that reduce EPA's role in
direct delivery  of compliance assistance, except as part of targeted initiatives for particular sectors,
and emphasize EPA's role as a  "wholesaler" of information by  distributing and marketing tools
through a network of compliance and technical assistance providers that work more directly with the
regulated community. These activities include (1) convening a compliance assistance exchange
forum, composed of public and private sector representatives, to share information on recently-
promulgated regulations and  new  compliance assistance materials  and  (2) maintaining  a
clearinghouse of compliance assistance materials available from federal, state and local governments
and from trade  associations.  EPA intends that all new compliance assistance materials will be added
                                          IX-36

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to the Clearinghouse within 3 0 days of receipt. Through public outreach and communication efforts,
including press releases and newsletters, EPA will publicize all major compliance assistance efforts.

       The Sector Facility Indexing Project (SFIP) will be continued in FY 2002. SFIP allows the
public to monitor the records of nearby facilities, provides the regulated community with a means
of comparing performance against competitors, and assists government agencies in making cross-
media comparisons. EPA is committed to increasing use of the SFIP by increasing public awareness
of the project, ensuring customer satisfaction with the information provided,  and sustaining the
utility of the SFIP as a compliance and analytical tool. EPA believes that these efforts will yield an
increase in web site user sessions over the FY 2001 levels.

       EPA will continue to support the ten Compliance Assistance Centers, a key component of
EPA's efforts to help small and medium-sized businesses better understand and comply with Federal
environmental requirements. The centers provide small businesses in selected industry sectors one-
stop shopping for regulatory and technical  assistance, pollution prevention activities, and  other
information particularly suited to the individual industries. Operated in partnership with industry
associations, environmental groups, universities and other government agencies, the centers are
accessible through Internet web sites as well as toll-free telephone assistance lines.

       The Agency will also provide sector-based materials and services and training sessions to the
regulated community to improve industry's regulatory and technical knowledge. EPA will promote
adoption of innovative technologies,  including waste minimization. In FY 2002, EPA plans to
provide compliance assistance to  500,000 entities.

       To improve its ability to measure the effectiveness of its various strategies in  improving
compliance  and environmental results,  EPA has tested methodologies designed to measure
behavioral change resulting from targeted compliance assistance. Focusing on 10 outcome measures
projects, EPA's goal is for 50% of the recipients of compliance assistance in these projects to have
improved their use or handling of pollutants or improved their facility management practices or
information as a result of the assistance received.

       Consistent with its Indian Program Strategy, the Agency will assist Tribes in developing their
own compliance assistance programs.  In FY 2002, EPA will continue its programs to assist Tribes
in addressing solid waste management problems.

       The program disseminates information to the public and regulated community on important
environmental issues, trends, and significant enforcement actions. This assistance (e.g., enforcement
alert publications, slide presentations to industry) is designed to help the regulated community
anticipate and prevent violations of federal environmental laws that could otherwise lead to
enforcement actions.

       EPA will also use the broad authority available under Toxic Substances Control Act (TSCA)
and other statutes to provide funding to selected support state and tribal multimedia compliance


                                          IX-37

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assistance projects in 2002.  States and tribes will address compliance problems with specific
industries and/or economic sectors and develop compliance measures andincrease state compliance
and enforcement data quality.

       The Federal facility enforcement program will continue to provide technical guidance to
other Federal agencies concerning their implementation of executive orders and environmental
programs, as well as providing guidance on complying with pollution prevention law requirements
and applicable environmental laws at Federal facilities. EPA will maintain and expand the Federal
Facility Compliance  Assistance Center to deliver compliance  assistance  to Federal agencies
concerning new regulatory requirements. EPA will develop and deliver compliance assistance for
new major EPA regulations and Executive Orders in selected program areas.  EPA will  work with
other Federal agencies on implementing the Federal Code of Environmental Management Principles
(CEMP)  through agency* or bureau-wide environmental management system assessments and
environmental management reviews at specific federal facilities. EPA will also support pollution
prevention opportunity assessments and similar evaluations  at Federal facilities.

National Environmental Policy Act (TMEPAI Implementation

       The program reviews environmental impacts of proposed major federal actions as required
by NEPA, §309 of the Clean Air Act,  the Antarctic Science, Tourism, and Conservation Act
(ASTCA), and the  Executive Order on environmental justice; and develops  policy and technical
guidance on issues related to NEPA, the Endangered Species Act, the National Historic Preservation
Act and relevant Executive Orders. The program emphasizes cooperation with other federal
agencies to ensure compliance with applicable environmental laws and better integration of pollution
prevention and ecological risk assessment into their programs, while targeting high impact federal
program areas, such as water resources and transportation/energy related projects. In FY 2002 the
Agency will continue to be significantly involved in implementing the Transportation Equity Act for
the 21st Century (TEA-21) through early involvement and intensive review in the NEPA process.
In FY 2002, EPA will review all major proposed federal actions under NEPA and achieve successful
mitigation for at least 70 percent of the adverse environmental impacts resulting from those actions.
The program also manages the Agency's official filing activity for all federal Environmental Impact
Statements (EIS) in accordance with a Memorandum of  Understanding with  the Council on
Environmental Quality.

       The NEPA  Implementation program also guides EPA's own compliance  with NEPA and
other applicable statutes, and related environmental justice requirements.  These efforts include
EPA-issued new source National Pollutant Discharge Elimination System (NPDES) permits where
a state/tribe has not assumed the NPDES program, for off-shore oil and gas sources, for Clean Water
Act (CWA) wastewater treatment plant grants, and for special appropriation grants for wastewater,
water supply and solid waste collection facilities. In FY 2002, EPA will review and document 100
percent of the water treatment facility grants and water discharge permits subject to NEPA to ensure
that impact of construction will not adversely affect the environment.
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FY 2002 Change from FY 2001 Enacted

EPM
•      (+$901,400, +10.0 FTE) These resources were redirected from other enforcement programs
       to support the Agency's regional compliance assistance efforts.

•      (-$866,700, -9.2 FTE) The program reduced  workyears and  associated payroll from
       compliance incentives, compliance assistance, and program management.

•      (-140,700, -1.5 FTE) Reduction due to the redirection of resources to the new enforcement
       grant program.  These resources have been redirected to the State and Tribal Assistance
       Grant appropriation to support the Agency's efforts to redirect enforcement responsibilities
       to the states.

•      (+$2,483,500) This increase reflects an increase in workforce costs.

•      (-$498,900)  Reduction to Congressional  earmarks   received  during the FY  2001
       appropriations process which are not included in the FY 2002 President's Request.



Annual Performance Goals and Performance Measures

Compliance Incentives

In 2002     Increase opportunities through new targeted sector initiatives for industries to voluntarily
           self-disclose and correct violations on a corporate-wide basis.

In 2001     Increase opportunities through new targeted sector initiatives for industries to voluntarily
           self-disclose and correct violations on a corporate-wide basis.

In 2000     Increased entities self-policing and self-correction of environmental problems through use
           of small business and small community policies.

Performance Measures:                     FY  1999    FY2000    FY2001    FY2002
                                        Actuals     Actuals     Estimate    Request

Number of facilities that self-disclosed
potential violations.                                   2,200                            facilities

Complete settlements with 500 facilities to
voluntarily self-disclose to the Federal
government and correct violations.                                 500        500        Facilities

Baseline:    EPA developed its Audit/Self-Policing Policy in 1995 to encourage corporate audits and
           subsequent correction of self-discovered violations. The Agency is working to expand the
           use of the Audit Policy through aggressive outreach to specific sectors - telecommunications,


                                             IX-39

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            petroleum, and iron and steel.  In FY01 the performance measure was modified to reach
            settlements with 500 facilities to voluntarily self-disclose and correct violations. This same
            measure has been carried over to FY02.

Environmental Management Systems

In 2002
In 2001
Promote the use of Environmental Management Systems (EMS) to address known
compliance and performance problems.

Promote the use of Environmental Management Systems (EMS) to address known
compliance and performance problems.
Performance Measures:
                               FY 1999
                               Actuals
FY 2000
Actuals
FY2001
Estimate
FY2002
Request
Increase EMS use by developing tools, such
as training and best practice manuals that
encourage improved environmental performance
and conduct research and evaluation of EMS's.

Increase EMS use by developing tools, such as
training and best practice manuals that encourage
improved environmental performance and conduct
research and evaluation of EMSs.
                                                                              Tools
                                                                              Tools
Baseline:    As a result  of  the  Innovations Task  Force  recommendations, EPA developed  the
            Environmental Management Systems project which promotes improved environmental
            performance through the use of assistance tools, such as training and/or best practices
            manuals to address known compliance and enforcement problems.  This was a new activity
            for EPA in FYO1. The FY02 target for this measure has been carried over from FYO1 with
            development of 3 additional tools.

Regulated Communities

In 2002     Increase the regulated community's compliance with environmental requirements through
            their expanded use of compliance assistance.  The Agency will continue to support small
            business compliance assistance centers and develop compliance assistance tools such as
            sector notebooks and  compliance guides,

In 2001     Increase the regulated community's compliance with environmental requirements through
            their expanded use of compliance assistance.  The Agency will continue to operate small
            business compliance assistance centers and develop compliance assistance tools such as
            sector notebooks and  compliance guides.

In 2000     Increased the regulated community's compliance with environmental requirements through
            use of  compliance assistance;  455,581 facilities  were reached and 140 compliance
            assistance tools were developed.

In 1999     We met our goal of increased use of compliance incentives and the understanding of, and
            ability to comply with, regulatory requirements by operating 9 small business compliance
            assistance centers (meeting target), completing 10 sector notebooks, guides, etc, (target 5),
            and conducted 22 (target 15) Federal facility management reviews.
                                               IX-40

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Performance Measures:
FY 1999
Actuals
FY 2000
Actuals
FY2001     FY2002
Estimate     Request
Compliance Assistance Centers in Operation    9

Compliance Tools Development               10

Federal Facility Management Reviews         22

Total number of facilities reached through
targeted compliance assistance

Number of compliance assistance tools
developed

50% of recipients of compliance assistance
from 10 projects will  improve their use or
handling of pollutants or improved their facility
management processes (core optional)

Number of facilities, states or technical
assistance providers or other entities reached
through targeted compliance assistance
(core optional)

Develop compliance assistance tools listed
in the Compliance Assistance Plan.

Increase the use of Sector Facilities Indexing
Project website user sessions over FY 00 levels

Increase compliance assistance  center usage.    36

Number of tribally owned/managed facilities
reached through the Agency's targeted
compliance assistance.
            455,581
             140
                                    Centers

                                    Sector Guides

                                    Reviews


                                    facilities


                                    tools
                         50
                                    Percent
                         450,000     500,000     Entities
                         150
                         150
                        Tools
                                                 Percent
                                                 percent
                         30
                        30
                        facilities
Baseline:    EPA provides clear and consistent descriptions of regulatory requirements to assure that the
            community can  understand its obligations.   EPA supports  initiatives targeted toward
            compliance in specific  industrial  and commercial sectors  or with  certain regulatory
            requirements. Compliance assistance tools range from plain-language guides, fact sheets,
            checklists and newsletters. In FY02, EPA is planning to reach  500,000 facilities, states, or
            technical assistance  providers  through  targeted compliance assistance efforts.   This
            represents a steady increase in facilities reached since the FYOO baseline target of 331,500.
                                                 IX-41

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Coordination with Other Agencies

       The Compliance Assistance program and the U.S. Department of Agriculture (USD A) have
created an Agricultural Compliance Assistance Center.  The program has in place two Interagency
Agreements with USDA to award funds to Land Grant Universities to develop compliance and
pollution prevention materials.

       The Compliance Incentives and Assistance program works closely with the states as they
provide an increasing amount of compliance incentives and assistance. The compliance assistance
centers have been coordinating with the states to assist them in their outreach efforts to industry, to
facilitate their delivery of sector-specific regulatory information, to serve as the delivery mechanism
for their pollution prevention and compliance assistance material, and to build their capacity to meet
the environmental needs of the businesses in their states and localities.

       The Enforcement program works with states prior to and following enactment of state audit
privilege and immunity legislation to identify and express the Agency's policy and legal concerns.
EPA has adopted a pragmatic, problem-solving approach to addressing legal adequacy in specific
states that have enacted audit privilege and immunity laws. EPA and the state use a process under
which they identify any legal impediments to federal program authorization resulting from the state's
law.  The impediments can then be addressed through  tailored statutory amendments, or a state
Attorney General opinion interpreting the law consistent with federal requirements, or both. EPA
has completed this process in ten states-Arkansas, Indiana, Michigan, Minnesota, Ohio, South
Dakota, Texas, Utah, Virginia, and Wyoming, an increase of four states during the past year.

       The Enforcement program also works with the Securities and Exchange Commission (SEC)
and the Department of Justice (DOJ) on activities to encourage increased disclosure of corporate
environmental performance information by public companies. The SEC and DOJ have reviewed
EPA research on the level of compliance with SEC environmental disclosure regulations. They also
commented on an EPA notice to be distributed in administrative enforcement actions, which informs
publicly-traded companies of their duty to disclose environmental legal proceedings pursuant to SEC
regulations.

       The Agency is required to review the environmental impact statements (EIS) and other major
actions impacting the environment and public health proposed by all federal agencies, and makes
recommendations to  the proposing federal agency  on how to remedy/mitigate those impacts.
Although EPA is required under § 309 of the Clean Air Act (CAA) to review and comment on
proposed federal actions, neither the National Environmental Policy Act nor § 309 CAA require a
federal agency to modify its proposal to accommodate EPA's concerns, although EPA has authority
under these statutes to refer major disagreements with other federal agencies to the Council on
Environmental Quality (CEQ).  Accordingly, many of the beneficial environmental changes or
mitigation that EPA recommends  must be negotiated with the other federal agency. The majority
of the actions EPA reviews are proposed by  the Forest Service, Department of Transportation
(including Federal Highway Administration and Federal Aviation Administration), Army Corps of
                                         IX-42

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Engineers,  Department of the Interior  (including  Bureau of Land  Management, Minerals
Management Service and National Park Service), Department of Energy (including Federal
Regulatory Commission), and Department of Defense.
Statutory Authorities

Resource Conservation and Recovery Act sections 3007, 3008, 3013, and 7003 (42 U.S.C. 6927,
6928,6934,6973)

Comprehensive Environmental Response, Compensation, and Liability Act sections 106,107,109,
and 122 (42 U.S.C. 9606, 9607, 9609, 9622)

Clean Water Act (CWA) sections 308, 309, and 311 (33 U.S.C. 1318, 1319, 1321)

Safe Drinking Water Act section 1413,1414,1417,1422,1423,1425,1431,1432,1445 (42 U.S.C.
300g-2, 300g-3, 300g-6, 300h-l, 300h-2, 300h-4, 300i, 300i-l, 300J-4)

Clean Air Act section 113,114, 303, and 309 (42 U.S.C. 7413, 7414, 7603, 7609)

Toxic Substances Control Act (TSCA) sections 11,16, and 17 and TSCA Titles II and IV (15 U.S.C.
2610, 2615, 2616,2641-2656,2681-2692)

Emergency Planning and Community Right-to-Know Act section 325 and 326 (42 U.S.C. 11045,
11046)

Federal Insecticide, Fungicide, and Rodenticide Act sections 8, 9, 12, 13, and 14 (7 U.S.C. 136f,
136g, 136j, 136k, 1361)

Ocean Dumping Act sections 101,104B, 105, and 107 (33 U.S,C. 1411,1414B, 1415,1417)

National Environmental Policy Act (NEPA)

Antarctic Science, Tourism, and Conservation Act (ASTCA)

Endangered Species Act (ESA)

National Historic Preservation Act (NHPA)
                                       IX-43

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Performance Measure: Number of EPA training classes/seminars delivered to states, localities
and tribes to build capacity.

Performance Database: NETTs course information management systems, the Automated Blue
Form, and the registrar.

Data Source: Manual Reports.

QA/QC Procedures: Managers QA/QC information in system.

Data Quality Review: None

Data Limitations:  The target is based on a preliminary estimate of the impact of redirecting
resources to the state and tribal enforcement grant program.

New & Improved Data or Systems: None


Performance Measure: Total number of state, tribal and local students trained.

Performance Database: NETFs course information management systems, the Automated Blue
Form, and the registrar.

Data Source: Manual Reports.

QA/QC Procedures: Managers QA/QC information in system,

Data Quality Review: None

Data Limitations:  The target is based on a preliminary estimate of the impact of redirecting
resources to the state and tribal enforcement grant program.

New & Improved Data or Systems: None

Performance Measure: Review and  respond to  100% of the notices for transboundary
movement of hazardous wastes, ensuring their proper management in accordance with
international agreements.

Performance Database: WITS (Waste Import Tracking Systems), Hazardous Waste Export System
(HWES).
                                      IX-44

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Data  Source:  Manual Reports (notifications) submitted by U.S. exporters and by foreign
governments for imports.

QA/QC Procedures: EPA reviews the notifications, manifests and annual reports to ensure they are
timely and accurate before they are entered into the database.

Data Quality Review: None

Data Limitations: Notifications are self-reported.

New & Improved Data or Systems: None.


Performance Measure: The National Enforcement Training Institute (NET!) will train tribal
personnel.

Performance Database: National Enforcement Training Institute Registration System.

Data Source: Potential class participants,

QA/QC Procedures: None

Data Quality Review: None

Data Limitations:  The target is based on a preliminary estimate of the impact of redirecting
resources to the state and tribal enforcement grant program.

New & Improved Data or Systems: None


Performance Measure: The National Enforcement Training Institute (NETI) will provide
tribal governments with SO computer-based training (CBT) modules.

Performance Database: National Enforcement Training Institute Registration System.

Data Source: Qualified individuals interested in NETI training.

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None
                                       IX-45

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New & Improved Data or Systems: None

Performance Measure: Percent of mutually agreed-upon high priority facilities in Indian
country will have been the object of minimum core compliance monitoring program.

Performance Database: Internal tracking will be done manually against the list of high priority
facilities developed during FY01.

Data Source: None.

QA/QC Procedures None

Data Quality Review None

Data Limitations None

New & Improved Data or Systems: None

Performance Measure: Conduct 4 analyses of environmental problems in Indian Country
using EPA's baseline assessment survey.

Performance Databases: Data will be gleaned from AILESP (American Indian Land Environmental
Support Project) database. This database is a subset of IDEA (Integrated Data for Enforcement
Analysis) containing information affecting Indian country. IDEA itself integrates data from major
enforcement and compliance systems such as, the Permit Compliance System (PCS), Air Facilities
System (AFS), Resource Conservation and Recovery Act Information System (RCRAInfo), and
Emergency Response Notification System (ERNS).

Data Source: EPA Regional offices.

QA/QC Procedures: All the systems within IDEA and in turn AILESP, have been developed per
Office of Information Management Lifecycle Management Guidance, which includes data validation
processes, internal screen audit checks and verification, system and user documents, data quality
audit reports, third party testing reports, and detailed report specifications for showing how data are
calculated.

Data Quality Review: AFS: EPA IG reports in 1997 and 1998 highlighted states* problems with
identifying and reporting Clean Air Act significant violators, impairing EPA's ability to assess non-
compliance. EPA issued High  Priority Violator Guidance to improve tracking of sources of
violations. As a result of the reports, EPA has enhanced oversight and headquarters' outreach to
regions, states, locals. (See Major Management Issues)
                                       IX-46

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Data Limitations:  For all systems, there are concerns about quality and completeness of data and
the ability of existing systems to meet data needs. Incompatible database structures/designs and
differences in data definitions impede integrated analyses. There are incomplete data available on
universe of regulated facilities because not all are inspected/permitted. In addition, the target is
based on a preliminary estimate of the  impact of redirecting  resources to the state  and tribal
enforcement grant program.

New & Improved Data or Systems: PCS modernization is currently underway. EPA is preparing
Quality Management Plans (data quality  objectives, quality assurance project plans, baseline
assessments) for all major systems.  A new Integrated Compliance Information System (ICIS) will
support core program needs and consolidate and streamline existing systems. A pilot project is
underway on developing statistically-valid compliance rates.

Performance Measure: Complete settlements with 500 facilities to voluntarily self-disclose to
the Federal government and correct violations.

Performance Database: Headquarters manages information on the self-disclosing policies in the
DOCKET.

Data Source: Headquarters and the Regions enter the information. The data for Docket is generated
through the use of the Case Conclusion Data Sheet (CCDS), which is prepared by Agency staff after
the conclusion  of each criminal and civil (judicial and administrative) enforcement action. The
CCDS was implemented by EPA in 1996 and captures the relevant information on the results and
environmental  benefits of the concluded enforcement cases.  Docket was modified  to  collect
information on the self-disclosing policies.

QA/QC Procedures: Procedures are in place for both the CCDS and for Docket entry.

Data Quality Review: Information contained in the CCDS and Docket are reviewed by Regional
and Headquarters staff for completeness and accuracy.

Data Limitations None

New & Improved Data or Systems: Docket is now collecting information on the self-disclosing
policies after it was modified. These policies were  tracked in Docket beginning in FY 2000.

Performance  Measure:  Increase Environmental Management  Systems  (EMS) use by
developing tools, such as training and  best practice manuals that encourage improved
environmental performance.

Performance Database: Internal tracking system is currently being developed.

Data Source: Headquarters will report on progress.

                                        IX-47

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QA/QC Procedures: None.




Data Quality Review: None.




Data Limitations: None.




New & Improved Data or Systems: None.
                                    IX-48

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Goal 10: Effective Management

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Environmental Protection Agency
2002 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 10: Effective Management	,	,	  X-l
        Provide Leadership	X-8
        Manage for Results Through Services, Policies, and Operations	  X-l2
        Provide Quality Work Environment	  X-25
        Provide Audit and Investigative Products and Services  —	,		  X-33

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                              Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                    Effective Management
Strategic Goal: EPA will maintain the highest-quality standards for environmental leadership and
for effective internal management and fiscal responsibility by managing for results.
                                     Resource Summary
                                     (Dollars in thousands)
                                           FY1999
                                           Enacted
             FY 2000
              Actual
          FY 2001
          Enacted
          FY2002
          Request
Goal 10 Effective Management

Obj. 01 Provide Leadership
$626,625.4     $431,440.6     $423,375.5    $431,703.8

 $30,384.7      $37,157.7      $40,833.8     $46,998.0
Obj. 02 Manage for Results Through Services,    $197,641.9    $173,028.8     $176,982.3     $189,686.0
        Policies, and Operations.
Obj. 03  Provide Quality Work Environment.

Obj. 04  Provide Audit, Evaluation, and
         Investigative Products and Services

                 Total Workyears
$358,709.5     $181,892.3     $152,537.9    $141,812.2

 $39,889.3      $39,361.8      $53,021.5     $53,207.6
   2,575.0
2,129.6
2,075.6
2,107.1
•For proper comparison with the FY 2002 request, the historic data has been converted to be consistent with the new 2000 Strategic Plan structure. Goal .and Objective resources
for FY 1999, FY 2000, and FY 2001 may therefore differ ftom the resources reported in the FY 2001 Annual Plan and Budget and the FY 2000 Annual Report.
Background and Context

       Activities under this goal support the full range of Agency activities for a healthy and
sustainable environment and include the following areas:

       •       Vision and leadership;
       •       Results-based planning and budgeting;
       •       Fiscal accountability;
       •       Quality customer service;
       •       Professional development of the entire Agency workforce;
       •       Independent evaluation of Agency programs;

                                              X-l

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       •      Investment in core infrastructure;
       •      Streamlined business processes;
       •      Program integrity;
       •      Management of human resources;
       •      Performance based procurement.

       The programs under this Goal are designed to deliver services that enable EPA program
offices to reach their environmental protection goals in an efficient and cost-effective manner.
Agency programs and operations will be independently evaluated by the Office of the Inspector
General to promote economy, efficiency, and effectiveness, and to prevent and detect fraud, waste,
and mismanagement. Sound leadership, proactive management of human resources, policy guidance,
innovation, quality customer service, consultation with stakeholders, results-based planning and
budgeting, fiscal accountability, and careful stewardship of our resources provide the foundation for
everything EPA does to advance the protection of human health and the environment Instead of the
traditional command and control strategies, many emerging issues require increased cooperation and
coordination with industry and other community partners.  In addition, work under this goal ensures
that EPA's management systems and processes will be supported by independent evaluations that
promote operational integrity and economic, efficient, and effective programs, allowing us to obtain
the greatest return on taxpayer investment.
Means and Strategy

       The Agency will continue to provide vision, leadership, policy and oversight for all its
programs and partnerships. It will employ management strategies to advance the protection of
human health and the environment. Strategies that cut across all organizational boundaries and are
key to performing the Agency's mission are:

       •     Employment of work relationships with stakeholders;
       •     Promotion of  cost-effective investment in environmental protection and public
             health through technological changes, fiscal accountability, improved customer and
             stakeholder relationships and delivery of services;
       •     Responsive and accountable management;
       •     Investments in core infrastructure that maintain a safe, healthy, and productive work
             environment;
       •     Assessment of management challenges and program risks identified by Congress,
             oversight agencies, EPA's OIG and State and Tribal partners;
       •     Commitment to manage human resources; fostering diversity and work to secure,
             develop, empower, and retain talented people the Agency needs to accomplish its
             environmental mission;
       •     Recognition of the special vulnerability  of children to environmental risks and
             facilitating the intensified commitment to protect children's health;
             Reduction of administrative compliant cases;


                                          X-2

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       By building on the success of its integrated plans, budgets, accountable processes and
initiatives, EPA continues to implement the Government Performance and Results Act (GPRA) to
ensure sound stewardship of Agency fiscal resources. As part of this effort* the Agency is improving
its capabilities to use performance data and other information to make cost-effective investments for
environmental results.  The Agency  also works closely  with partners and stakeholders to meet
GPRA challenges.  EPA consults with both internal and external customers to ensure  fiscal
management services meet their needs for timeliness, efficiency, and quality.

       Investment in human resources ensures that the workforce has the scientific and technology
skills needed for the future and reflects the talents and perspectives of a growing multi-cultural
society. This strategy will enable EPA to attract, retain and further develop a diverse workforce
prepared to meet the Agency's current and future challenges.

       EPA works toward providing a quality work environment which places high value on
employee safety, security and the design and establishment of state-of-the-art laboratories.  These
facilities provide the  tools essential to research  innovative solutions for current and  future
environmental problems and enhances our understanding of environmental risks.  Plans for building
operations and new construction to support existing infrastructure requirements ensure healthy, safe
and secure work environments  and reflect energy conservation goals. These plans also fulfill the
scientific and functional requirements of our programs. EPA has adopted an aggressive strategy to
utilize energy savings  performance contracts in order to reduce energy consumption significantly
over the next five years.

       The Agency's efforts in contract management will focus on selecting the appropriate contract
vehicle  to  deliver the best value for the taxpayer.   Performance-based contracts allow  the
Government to manage for results. Under this system the Government pays for results, not effort
or process, and contractors are  encouraged to determine the best and most cost effective ways to
fulfill the Government's needs.  Performance-based contracts save time and money for the Agency
by reducing unnecessary contract administration costs. This is accomplished by moving away from
cost reimbursement and level of effort to fixed price completion contracts. In addition, the Agency
will put increased emphasis on contract oversight, including speeding up the contract process
through fast-track system enhancements and automation efforts.

       All Office of Inspector General (OIG) work is focused on the anticipated value it will have
on influencing in resolving the Agency's major management challenges, reducing risk, improving
practices and program operations, and saving taxpayer dollars while leading to the attainment of
EPA's strategic goals.  Highlights of expected Agency 2002 achievements in effective management
are:

•      Improvement of environmental quality and human health.
•      Improvement of Agency management and program operations.
•      Producing timely, quality, and cost-effective products and services.
                                          X-3

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       The Agency will continue its commitment to protect children's health by targeting resources
towards activities that will assure that the decisions and actions taken by the Agency consider risks
to children, including working to develop sound scientific information to provide the basis for these
decisions and actions.  The Agency will also  provide policy  direction and guidance on equal
employment opportunity  and  civil  rights.  The  Agency's Administrative Law Judges and its
Environmental Appeals Board Judges will issue timely decisions on administrative complaints and
environmental adjudications.
Strategic Objectives and FY 2002 Annual Performance Goals

Objective 01:  Provide Leadership

Objective 02:  Manage for Results Through Services, Policies, and Operations

•      EPA continues improving how it measures progress in achieving its strategic objectives and
       annual  goals by increasing external performance goals and measures characterized as
       outcomes by 2% in the FY 2003 Annual Performance Plan and Congressional Justification
       compared to FY 2002.

•      EPA strengthens goal-based decision making by developing and issuing timely planning and
       resource Management products that meet customer needs.

Objective 03:  Provide Quality Work Environment

»      EPA will initiate a demonstration fuel cell at Ft.  Meade Laboratory.

•      EPA will ensure personnel are relocated to new space as scheduled.

•      EPA will  ensure that all new and ongoing  construction  projects are progressing and
       completed as scheduled.

Objective 04:  Provide Audit and Investigative Products and Services

•      Improve environmental quality and human health by recommending 5 0 improvements across
       Agency environmental goals,  identifying and recommending solutions to reduce 15 of the
       highest environmental risks, and identifying 15 best environmental practices.
Highlights

       Agency management provides vision, leadership and conducts policy oversight for all
Agency programs. Sound management principles, practices, results-based plans and budgets, fiscal
                                         X-4

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accountability, quality customer service,  policy guidance and careful stewardship of Agency's
resources are the foundation of EPA's efforts to protect the human health and the environment.

       In FY 2002, EPA will build on its progress of linking resources to environmental results
through goals-based fiscal resource management.  The Agency will provide more useful cost
accounting information for environmental decision making. EPA will make continued progress to
evaluate the environmental results of its program activities. Highlights of expected Agency F Y 2002
achievements in effective management are:

*      Continued  improvement in the accountability process that provides timely performance
       information used in strategic and annual plans, budget formulation, and reports.

•      Maintenance of a clean audit opinion on the Agency's financial statements to demonstrate
       the highest caliber of resource stewardship and the credibility  and reliability of Agency
       financial information.

•      Implementation of a new payroll system that will reduce  processing costs and burdens
       through use of efficient technology and processes.

•      Continued development a long-term solution  for the replacement of the Agency's major
       financial system and ancillary specialized systems that will better integrate these systems
       with other Agency resource database and administrative systems.

•      Expansion of cost accounting and financial reporting capabilities to make relevant financial
       information readily available for decision-making purposes.

       The Agency continues to strengthen pre-award and post-award management of assistance
agreements. In FY 2002, EPA will closeout all interagency agreements and non-construction grants
that end before September  30, 2001, ensuring projects are closed in a timely manner and that
backlogs are avoided. The Agency will move toward electronic execution of grants internally and
continue its commitment to integrate with Federal Commons, the central source for electronic grants
administration for the government.  The Agency will improve electronic commerce by providing
electronic communication and contract management between EPA Program Offices and EPA
contractors through the use of EPA's Program Office Interface System.  In FY 2002, the Agency
will continue to improve efficiencies in the contract process, while saving taxpayers dollars, through
use of performance-based contracts. All new contracts will be evaluated for possible award or
conversion to performance-based contracts.

       InFY 2002, the Agency's request reflects the need to invest in our human resources to ensure
that EPA has the science, technology, and interdisciplinary skills needed for the  future and that
EPA's workforce  reflects the talents and perspectives  of a growing multi-cultural society.  To
support this priority, the Agency will continue to implement its "Strategy for Human Capital." The
Strategy represents a strategic direction to invest in and manage the Agency's human resources.
                                          X-5

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The effort includes workforce planning, to ensure that human resource requirements are aligned with
strategic goals, and training, to enable our workforce to deliver national leadership, science and
technology expertise in environmental protection.  The Agency recognizes that investing in human
resources is  fundamental to achieving our strategic goals and objectives. The Agency's human
resource goals are:
•      Attracting and retaining a diverse and highly skilled workforce,
•      Ensuring workforce performs to their highest potential,
•      Encouraging the workforce to be innovative,  creative, and risk taking  at all levels of the
       organization.
•      Continuing  to develop  a  sense of community., where  differences are  recognized as
       contributing to the whole, all employees' contributions are appreciated, and all views are
       solicited and welcomed.
•      Practicing teamwork and collaboration with internal and external partners.
•      Integrating human resource systems with planning, budgeting, and accountability processes.

       The Agency's building operations and new construction budget ensures a healthy, safe and
secure work environment for its employees, and integrates energy conservation and state-of-the-art
technology into its daily activities. The Agency will ensure that all new and ongoing construction
projects are progressing and completed as scheduled. Renovation activities will continue at the New
Headquarters project.  EPA will also address critical repairs hi EPA facilities related to employee
health and safety, as well as environmental protection. These facilities provide the tools essential
for researching innovative solutions to current and future environmental problems and enhancing
our understanding of environmental risks.

       The OIG will conduct and supervise independent and objective  audits, evaluations, and
investigations relating to Agency programs and operations, and will provide advisory services. The
OIG will also review and make recommendations regarding existing and proposed legislation and
regulations impacting the Agency.  In addition, program evaluations and five types of audits will be
conducted: contract, assistance agreement, program, financial statement, and  systems audits. Five
types of investigations will be performed: program integrity, assistance  agreement, contract and
procurement, employee integrity, and computer forensic investigations. Combined, these activities
promote economy, efficiency, and effectiveness within the Agency, prevent and detect fraud, waste,
and abuse, and contribute to improved environmental quality and human health.  The OIG will keep
the EPA Administrator and Congress fully  informed of problems  and deficiencies identified in
Agency programs and operations and the necessity for corrective actions.

       EPA will continue its commitment to protect children's health.  The Agency will direct
resources toward the programs that reduce risks to children from a range of environmental hazards.
In FY 2002, the Agency will focus on research and  analyses to provide scientific and economic
information  needed to  address the heightened  risks faced by  children  from  environmental
contaminants. The Agency will continue to work to decrease the frequency and severity of asthma
attacks in children through reduction and avoidance of key asthma triggers, including environmental
tobacco smoke, prevalent indoor allergens and ambient air pollution. The Agency will continue
                                          X-6

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efforts to reduce children's exposure to lead, particularly in low income minority neighborhoods,
where children living in older housing are much more likely to be exposed to lead. We will continue
to build partnerships and work with other Federal agencies, states, health care providers, schools,
and international organizations to incorporate children's environmental health into their programs
and activities.  Highlights of expected Agency 2002 achievements in effective management are:

•      Improvement of internal discrimination complaints process to provide employees and
       applicants for employment an opportunity to seek redress.
       Improvement of  external discrimination complaints process to prohibit discrimination
       against any entity that receives Federal financial assistance.
External Factors

       EPA would be affected by major new legislative requirements unsupported by increased
resources.  Such new mandates could require shifts in existing priorities for strategic planning,
performance measurement, resource management, or financial management.

       EPA would be affected by new directives from OMB, the Department of Treasury and other
central offices for the management of its financial and information systems, accounting standards,
and  reporting requirements.

       EPA would be affected by limited availability of environmental data required to measure
results and make decisions relating resources to results.

       The ability of the Office of Inspector General to accomplish its annual performance goal is
dependent, in part, on external factors. Indictments, convictions, fines, restitutions, civil recoveries,
suspensions, and debarments are affected by the actions of others (e.g., the Department of Justice).
In addition, the prosecutive criteria established within various jurisdictions (e.g., dollar thresholds)
can affect the number of cases.

       The ability of the OIG to accomplish its annual performance goals is dependent, hi part,
on external factors. Indictments, convictions, fines, restitutions, civil recoveries, suspensions,
and debarments are affected by the actions of others (e.g., the Department of Justice).  In
addition, the prosecutive criteria established within various jurisdictions (e.g., dollar thresholds)
can affect the number of investigative cases.

       The Congressional appropriations language prohibiting the Office of Civil Rights from
implementing it interim Title VI guidance has caused an increase in the Agency's Title VI
complaints backlog.  Until the Agency publishes new final guidance, any complaints must be
processed under guidelines used prior to the February 5,1998 interim guidance, or held in
abeyance, thereby increasing the backlog of cases.
                                           X-7

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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification
                               Effective Management
Objective #1: Provide Leadership

      Provide vision, national and international leadership, executive direction, and support for
all Agency programs.
                                 Resource Summary
                                (Dollars in thousands)
FY 1999 FY 2000
Enacted Actual
Provide Leadership
$30,384.7
Environmental Program & Management $30,229.5
Hazardous Substance Superfund
Total Workyears


EMPACT
Civil Rights/Title VI Compliance
Immediate Office of the Administrator
Administrative Law
Environmental Appeals Boards
Rent, Utilities and Security
$155.2
268.8
Key Programs
(Dollars in thousands)
FY 1999
Enacted
$81.3
$1,637.1
$2,791.3
$2,324.3
$1,660.3
$0.0
$37,157.7
$37,146.2
$11.4
273.1

FY 2000
Enacted
$563.6
$1,430.9
$2,505.6
$2,471.3
$1,880.8
$2,624.4
FY2001
Enacted
$40,833.8
$40,833.8
$0.0
277.6

FY2001
Enacted
$0.0
$9,140,1
$3,300.0
$2,566.3
$1,548.8
$2,425.1
FY 2002
Request
$46,998.0
$46,998.0
$0.0
309.3

FY2002
Request
$0.0
$11,898.3
$4,294.2
$2,828.3
$1,711.6
$2,668.1
                                        X-8

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FY1999 FY2000 FY2001 FY2002
Enacted Enacted Enacted Request
Administrative Services
Regional Management
$67.2
$0.0
$315.1
$67.5
$298.3
$30.6
$299.4
$0.0
FY 2002 Request

       The American public is calling for environmental protection that preserves and protects
America's environment, and an environmental protection framework that is based on partnerships
with state and Tribal governments. They are challenging their leaders to adopt tough but achievable
goals for the environment and to offer people and institutions the flexibility to find cost-effective
ways to  achieve those goals.  The Immediate  Office of the Administrator and its  Regional
counterparts will provide the vision and leadership needed to enable EPA to meet its commitments
to protect public health and the environment in 2002.

       EPA will continue its commitment to protect children's health.  The Agency will direct
resources toward the programs that reduce risks to children from a range of environmental hazards.
In 2002, the Agency will focus on research and analyses to provide scientific and economic
information needed to address  the potential risks faced by  children  from environmental
contaminants.  The Agency will continue to work to decrease the frequency and severity of asthma
attacks in children through reduction and avoidance of key asthma triggers, including environmental
tobacco smoke, prevalent indoor allergens and ambient air pollution.  The Agency will continue
efforts to reduce children's exposure to lead, particularly hi low income minority neighborhoods
where children living in older housing are more likely to be exposed to lead. We will continue to
build partnerships and work with other Federal agencies, states, health care providers, schools, and
international organizations to incorporate children's environmental health into their programs and
activities.

       In 2002, the Agency will focus on reducing the backlog of Title VI external administrative
complaints and Title VII internal employment discrimination complaints.  Policy direction and
guidance will be provided within the Agency on equal employment opportunity, civil rights and
diversity issues. EPA will process discrimination complaints and develop, administer and monitor
the implementation of affirmative employment programs. Furthermore, EPA will manage special
emphasis programs designed to improve the representation, utilization, and retention of minorities
and women in the Agency's workforce. Finally, EPA's external compliance program, including Title
VI  of the Civil Rights Act of 1964, will prohibit discrimination in programs and activities that
receive financial assistance from EPA.

       The Environmental Appeals Board (EAB) will issue final Agency decisions in environmental
adjudications  on appeal  to  the Board.  These decisions are the end point  in the Agency's
                                          X-9

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administrative enforcement and permitting programs. The right of affected persons to appeal these
decisions within the Agency is conferred  by various statutes, regulations and constitutional due
process rights.

       The Administrative Law Judges (ALJs) will preside in hearings and issue decisions in cases
initiated by EPA's enforcement program concerning those accused of environmental violations under
various environmental statutes. The ALJs have increased use, in recent years, of alternative dispute
resolution techniques to facilitate the settlement of cases and, thereby, avoid more costly litigation.
FY 2002 Change from FY 2001 Enacted

EPM

       (+$2,332,5007+25 FTE) The FY 2002 Request is $2,332,500 and 25 FTEs above the FY
       2001 Enacted budget level to support Title VI and Title VII civil rights work.

•      (+$ 1,811,400) This increase reflects an increase in workforce costs.

       (+$ 1,249,100/+4.2 FTE) Reflects a redirection of Office of the Administrator resources to
       regional management activities.
Annual Performance Goals and Performance Measures

Civil Rights

In 2002     Establish metrics to assess the overall quality and effectiveness of all aspects of the Title VII
           program

In 2002     Develop the strategy for a diversity survey that will enable OCR to identify areas of progress
           and concerns relative to  overall quality  of life,  fairness and issues associated  with
           discrimination.

In 2001     Develop an Agency-wide Title VII training program
Performance Measures:
"Implement Agency-wide Title VII
Alternative Dispute Resolution program

Develop metrics and conduct analyses
against them for the counseling program,
investigative process, alternative dispute
resolution program and training
FY 1999    FY2000   FY2001    FY2002
Actuals     Actuals    Estimate    Request
                                           program
                                           program
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Identify contractor support, establish EPA
workgroup, benchmark practices in other
agencies and in the private sector, and conduct
background research, and develop
implementation strategy by FY2002                                          1          program

Baseline:   Ensure compliance with federal non-discriminaton laws in all of the Agency's internal and
          external programs and policies.
Verification and Validation of PMs

       None


Coordination with Other Agencies

       The Administrator co-chairs, along with the Secretary of the Department of Health and
Human Services, the Interagency Task Force on the Protection of Children from Environmental
Health Risks.  EPA and other Federal agencies work together to implement a coordinated Federal
policy related to children's environmental health issues.


Statutory Authority

Administrative Procedure Act

Civil Rights Act of 1964, Title VI

Civil Rights Act of 1964, Title VII

Comprehensive Environmental Response, Compensation, and Liability Act
                                           X-ll

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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                  Effective Management

Objective #2: Manage for Results Through Services, Policies, and Operations

       Demonstrate leadership in managing for results by providing the management services,
administrative policies, and operations to enable the Agency to achieve its environmental mission
and to meet its fiduciary and workforce respon$ibilities and mandates.
                                   Resource Summary
                                   (Dollars in thousands)
                                         FY 1999
                                         Enacted
            FY2000
             Actual
FY 2001      FY 2002
Enacted      Request
Manage for Results Through Services,
Policies, and Operations.

    Environmental Program & Management
    Science & Technology

    Leaking Underground Storage Tanks


    Oil Spill Response

    Inspector General

    Hazardous Substance Superfund

      ' Total Workyears
$197,641.9    $173,028.8    $176,982.3    $189,686.0
$155,289.7    $144,025.5    $143,391.4    $154,904.8
$326.0
$988.7
$4.3
$82.0
$40,951.2
1,868.0
$1 12,7
$654.2
$5.7
$1.4
$28,229.3
1,506.3
$129.5
$1,313.2
$6.2
$0.0
$32,142.0
1,420.0
$176.8
$1,270.7
$6.2
$0.0
$33,327.5
1,423.0
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                                    Key Programs
                                 (Dollars in thousands)

Brownfields
Reinventing Environmental Information (REI)
SuperfUnd - Maximize PRP Involvement (including
reforms)
Environmental Finance Center Grants (EFC)
Human Resources Management
Contracts Management
Grants Management
Information Technology Management
Planning and Resource Management
Rent, Utilities and Security
Administrative Services
Regional Management
FY 1999
Enacted
$0.0
$2,507.1
$967.7
$1,065.0
$21,932.0
$24,986.0
$8,568.8
$21,975.1
$51,897.1
SO.O
$6,431.4
$0.0
FY2000
Enacted
$0.0
$0.0
$0.0
$1,250.0
$0.0
$0.0
$0.0
$0.0
$44,079.9
$26,714.3
$64,165.8
$16,814.2
FY 2001
Enacted
$0.0
$0.0
$0.0
$1,249.0
$0.0
$0.0
$0.0
$3,250.4
$47,567.1
$23,710.7
$58,647.4
$21,274.2
FY 2002
Request
$231.1
$0.0
$0.0
$1,249.0
$0.0
$0.0
$0.0
$0.0
$47,246.8
$26,183.6
$64,082.8
$32,277.4
FY 2002 Request

       In FY 2002, the Agency will continue to focus on Strategic Planning, Annual Planning and
Budget, Financial Services, Financial Management, Analysis, and Accountability. Through these
activities, the Agency provides executive direction for the Agency' s budget, financial, and resources
management functions; develop and manage a results-based management  system; manages the
annual planning and budgeting process; provides financial accounting and fiscal services to the
Agency; operates and maintains the Agency's integrated financial management system; provides
support to the Agency's Superfund cost recovery efforts; prepares the annual financial statements
and performance reports; and coordinate the planning and budgeting process for the Agency
Working Capital Fund. In addition, EPA's Environmental Financing Program assists states and
localities in meeting their critical environmental infrastructure needs in a sustainable manner. The
program provides grants to a network of university-based Environmental Finance Centers which, in
                                         X-13

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turn, provide training, expert advice, education, and analysis to states, local communities and small
businesses. As part of EPA's efforts to provide the American public with cost-effective and efficient
services, the Agency will carefully review our Federal Activities Inventory Reform Act process for
FY 2002.

       In FY 2002, the Agency will continue development and management of the Agency's
integrated planning, budgeting, analysis, and accountability (PB AA) process to support a goals-based
management system for the Agency. To accomplish its goals and objectives, EPA will consult with
its partners and stakeholders (states, tribes, local government, other federal agencies, environmental
associations, industry groups, the EPA Science Advisory Board) and the Congress and OMB to build
the collaboration required to develop environmental outcomes that can be measured in short-term
increments as well as long-term environmental goals.  The Agency will provide technical support
and assistance to the National Program Mangers (NPM) and Regions to help ensure that EPA
resources are focused on reducing the most significant risks to human health and the environment.
EPA will work to link annual plans to the long-term goals and objectives of the Agency. EPA will
Continue capacity  building activities to the NPMs and Regions to help increase the quality and
quantity of program evaluations conducted. Such evaluations will help ensure that EPA resources
are directed in the  proper manner and that programs are achieving their intended results.

       Our continued work with state governments through the Environmental Council of the States
(ECOS) will ensure collaboration and cooperation with respect to the Agency's short and long-term
goals  and  objectives. In the development of the Agency's Annual Plan, EPA will involve the
Agency' s regulatory partners (principally States and Indian tribes) in identifying short and long-term
program priorities that can be considered in EPA's planning efforts.  Our work in the areas of
Federal Managers' Financial Integrity Act reporting and compliance with the Inspector General Act
will include preparation of an annual report on material weaknesses and semiannual reports to
Congress on audits, audit resolution activities, and support for audit coordinators throughout EPA.
EPA will develop  the Agency's third Annual Performance Report under GPRA-which will be its
second consolidated Annual Report-in FY 2002. This report will provide the Congress with a
comprehensive picture of its FY 2001 program performance related to the achievement of  annual
performance goals and measures described in the Agency's revised final FY 2001 Annual Plan. This
report also meets  requirements for reporting on management integrity, audit management, and
financial statements.

       The Agency will continue to meet the many challenges facing the quickly changing arena of
Federal financial management and services. EPA will continue to further streamline and automate
our financial statement process to make it more efficient and maintain our clean opinion, a visible
and key indicator to the public of our commitment to sound stewardship. To achieve our goal, the
agency will also revise our policies to ensure they meet today's higher accounting standards and
facilitate our implementation of GPRA. In addition, EPA will continue its
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commitment to electronic commerce. Currently, the Agency makes over 90 percent of its payments
electronically and expects to continue increasing the level of electronic payments during FY 2002.

       To keep pace with the challenges posed by rapid technological change, the Agency will
make significant headway in bringing up a new payroll system and evaluating replacement options
for our core financial system. EPA also plans to have a new reporting system, the financial data
warehouse, well underway: the warehouse represents our ability to cost effectively extract cost
information from a variety of administrative systems such as EPA's  Integrated Financial
Management System (IFMS). Utilization of this system will provide decision-makers with useful,
timely and reliable reports to help them better manage their programs and meet their environmental
goals. The agency will also focus on ensuring our internal and external  customers have financial
systems which  help them work  efficiently  and reduce administrative burdens.  For example,
payments will be managed through Treasury's standard government system and EPA travelers will
have a completely automated process from start to finish.  Finally, the Agency will continue our
efforts  to reduce system risks and vulnerabilities to ensure that our sensitive financial data is well
protected from intruders.

       As part of our efforts to provide the public with cost effective and efficient services, EPA will
carefully review our Federal Activities Inventory Reform Act process for F Y 2002. The review will
ensure EPA maintains an effective plan to compete those functions which are identified as being
performed better by the private sector.

        In FY 2002, EPA will develop the Agency's Annual Plan and Budget consistent with the
Strategic Plan and further develop EPA's Budget Automation System (BAS), which serves as an
invaluable tool  for the Agency's budget process. EPA will continue  the development of cost
accounting capabilities in BAS that enable Agency managers and stakeholders to know the full cost
of Agency programs and the resources associated with the achievement of environmental results.
In order for EPA to achieve its environmental mission, an infrastructure must exist to demonstrate
and document how EPA's resources result in improvement of public health and the environment
over the long term. Improvements in cost accounting and financial reporting will provide Agency
management with the means to assess how Agency resources link with environmental results.

       This objective  provides the leadership to ensure sound management  of administrative
services throughout the Agency, in both headquarters and the regions.  The objective includes a
broad range of functions, including: management of human resources, contracts and grants, facilities
operations, health and safety, and environmental compliance.

       The Agency will ensure a high level of integrity and accountability hi the management of
grants and contracts.  The Agency will continue to strive toward  better pre award and post award
management of assistance agreements. In 2002, EPA will close out all interagency agreements and
non-construction grants that end before September 30,2001.  The Agency will continue efforts to
improve monitoring and oversight of grants, including  on-site reviews of selected grantees.  In
addition, in 2002, EPA will link  grant and financial data by incorporating information from the
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Integrated Grants Management System (IGMS) into the Financial Data Warehouse. This is another
step forward in EPA's efforts to utilize electronic commerce to fully automate the assistance process
from cradle to grave.

       In the contracts area, Agency efforts focus on selecting the appropriate contract vehicle to
deliver the best value for Agency's mission and the taxpayer, including reducing the use of cost-
reimbursable contracts.  All contracts will be evaluated for possible award or conversion to
performance-based contracts.  In addition, the Agency will put increased emphasis on contract
oversight, including speeding up the contract processes through fast-track system enhancements and
automation efforts.

       The Agency will invest in our human resources to ensure that EPA has the science and
technology, and interdisciplinary skills needed for the future and that EPA's workforce reflects the
talents and perspectives of a growing multi-cultural society. To support this priority, the Agency will
continue to implement its "Strategy for Human Capital." The Strategy represents the first time that
the Agency has developed a strategic direction for investing in and managing the Agency's human
resources. The effort includes workforce planning, to ensure that human resource requirements are
aligned with strategic goals, and training, to enable our workforce to deliver national leadership and
science and technology expertise in environmental protection.

       EPA will improve its infrastructure and ensure that the scientific and functional requirements
of our programs are fulfilled. The personnel funded in this objective provide facilities operations and
maintenance services to the Agency's headquarters and regional offices.  The services include
management of mail, transportation, printing, space utilization,  security, and health safety and
environmental compliance  activities.  The Agency will continue an aggressive  approach to
strengthen pollution prevention and energy conservation in its facilities.

       EPA will develop and issue guidance for executive agencies to use when purchasing goods
and services in response to Executive Order 13101 to show a preference for "environmentally
preferable" products and services. "Environmentally preferable" products and services have a lesser
or reduced effect on human health and the environment when compared  to other products  and
services that serve the same purpose.

EPA's environmental information efforts require the Agency to ensure that its keeping pace with the
states in the areas of data collection, management, and utilization. Consequently, in F Y 2002, EPA
will emphasize  its new state data management grants, both from an information technology and
grants management perspective. Additionally, EPA will continue to focus on information security
and the need for each Region to have an internal information technology security capacity.
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FY 2002 Change from FY 2001 Enacted

MULTI-APPROP

       (+$800,000 EPM, +$200,000 SF) Of funds being invested on systems modernization,
       $1,000,000 is redirected from activities within the Office of the Chief Financial Officer to
       support the Integrated Financial Management System (IFMS).

       (+$783$00 EPM, +$736,500 SF, $35,800 LUST)   Payroll  Adjustment - Investment
       Provides for cost of living increases.

       (-$659,100; -7.1 FTEs EPM, -$89,400; -4.1 FTEs  SF.) This reduction will be to Fiscal
       Resource Management & Accountability activities.

       (+$1,095,100 EPM, +$47,300 S&T,  +$87,600 SF)  The transit subsidy program benefits
       increase to $100 per month in January 2002.  This  reflects an increase in transit subsidy
       benefits from $60 to $100 per month and increased participation in the transit subsidy
       program as more people move into the New Headquarters complex.

       (+$7,610,800  EPM,  +$672,800 Superfund) Reflects a correction  in the  FY 2002
       methodology which allocates administrative management costs across the environmental
       goals. This increase is not a substantive change to the activity.
Annual Performance Goals and Performance Measures

GPRA Implementation

In 2002     EPA strengthens goal-based decision making by developing and issuing timely planning and
           resource Management products that meet customer needs.

In 2002     EPA continues improving how it measures progress in achieving its strategic objectives and
           annual goals by increasing external performance goals and measures characterized as
           outcomes by 2% in the FY 2003 Annual Performance Plan and Congressional Justification
           compared to FY 2002.

In 2001     EPA strengthens goal-based decision making by developing and issuing timely planning and
           resource management products that meet customer needs.

In 2001     EPA continues improving how it measures progress in achieving its strategic objectives and
           annual goals by increasing external performance goals and measures characterized as
           outcomes by 4% in the FY 2002 Annual Performance Plan and Congressional Justification.

In 2000     85%  of EPA's GPRA  implementation  components  (planning, budgeting, financial
           management, accountability,  and program analysis) were completed on time and met
           customer needs.
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In 1999      EPA can plan and track performance against annual goals and capture 100% of costs through
            the new PBAA structure, based on modified budget and financial accounting systems, a new
            accountability process which was put in place in the 3rd quarter, and new cost accounting
            mechanisms.
Performance Measures:
FY 1999
Actuals
FY2000
Actuals
FY 2001
Estimate
FY 2002
Request
The Annual Performance Report is delivered
to Congress and reflects all EPA performance
measures of Congressional interest as identified
in the Annual Performance Plan.

The revised Strategic Plan will be produced
and distributed.

Agency financial statements receive an
unqualified audit opinion and are timely and
provide programmatic and financial information
useful to policymakers and interested parties.

Agency payroll and related systems are
Year 2000 compliant in time to achieve
invisible processing of payroll transactions.     16-Jul-1999

The Accountability System tracks
accomplishments against annual performance
goals and measures and provides the
information necessary for evaluating and
adjusting program activities.                  3\12\99

Develop specifications for replacement of
our central financial management systems
and ancillary specialized systems, and begin
the evaluation process.

Agency's audited Financial Statements and
Annual Report are submitted on time.

Percentage of increase  in outcome-oriented
APGs/PMs in Agency's Annual Plan and
Congressional Justification submission.

EPA's audited Financial Statements receive
an unqualified opinion and provide information
that is useful and relevant to the Agency and
external parties.

Annual Plan and Budget Submission is
timely  and meets OMB requirements.
            31-Mar-2000
            30-Sep-2000
            30-Sep-2000
            30-Sep-2000
                        3/01/2001   3/01/02
                                               Percent
                        One
                        09/2001
                        One
                        09/2002
                        final statement
                                                X-18

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Baseline:    in the FY 2001 Annual Performance Plan, 23% of the Annual Performance Goals (APGs)
            and 27% of Annual Performance Measures (APMs) are characterized as outcomes. For FY
            2002, the cumulative goal is a total of 29% of externally reported APGs and 33% of APMs
            be characterized as outcomes in the FY 2003 Annual Performance Plan.

Payroll Systems Analysis

In 2002     Make significant progress in modernizing key financial management systems.

In 2001     Make significant progress in modernizing key financial management systems.
Performance Measures:
                               FY 1999
                               Actuals
FY2000
Actuals
Begin implementation plan for replacing
EPA's legacy payroll systems.

Establish a systems modernization team.

Complete preliminary analysis and evaluation
of options for replacing EPA's integrated financial
management system (IFMS).

Baseline:    Evaluate options for replacing key financial systems.

Core Financial Services

In 2002
FY2001
Estimate
                                                      9/30/01

                                                      9/30/01



                                                      9/30/01
FY2002
Request
                       9/30/02
                       9/30/02
In2001
Streamline the delivery of core financial management services to reduce customer burden and
improve efficiency and cost effectiveness.

Streamline the delivery of core financial management services to reduce customer burden and
improve efficiency and cost effectiveness.
Performance Measures:
                               FY 1999
                               Actuals
FY2000
Actuals
FY2001
Estimate
FY2002
Request
Meet or exceed 90% of Chief Financial
Officer core financial management standards
(e.g. accounts receivable, travel reimbursements,
payroll, EFT, cash reconciliations, etc.)                                90          90%

Baseline:    In F Y 2001,90% of Chief Financial Officer's management standards met.

Workforce Improvement

In 2002     EPA will improve the capability of its workforce by managing an SES Candidate Program
            and continuing to hire talented and diverse individuals

In 2001     EPA will improve the capability of its workforce  by: workforce & succession planning;
            leadership development courses;  mid-level employee cross-functional/business acumen
            skill's development courses; support   critical competency  enhancement training;  and
            recruitment & development of new EPA Interns.
                                                                             percent
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In 2000      EPA drafted it's the "Strategy for Human Capital" which represents the first time the Agency
            has  developed a strategic direction for investing in and managing the Agency's human
            resources. It includes training & outreach to minority groups.

In 1999      We will continue to improve the quality, effectiveness and efficiency of EPA's workforce by
            hiring diverse and talented interns. We hired a total of 22 interns in FY 1999
Performance Measures:
Number of Interns hired.
FY 1999
Actuals
FY 2000
Actuals
FY2001
Estimate
Number of participants in the SES
Candidate Program

Number of interpersonal and interdisciplinary
competencies addressed in mid-level training
curriculum.

Number of Interns hired under the EPA
Intern Program.                             22

Percentage of administrative, secretarial,
and support staff employees demonstrate
increased competencies and enhance work
effectiveness by participating in the "New Skills,
New Options" training.

Number of participants in the Senior Executive
Service (SES) candidate program.
FY 2002
Request

120
                                   40
            78
                        12
            60
                                               Intern
                                   Number
                                   Competencies
                        Interns
                        90
                        20
                                    Percent
                                   Candidates
Baseline:    The baseline in FY 2000:  four pilots  for  Leadership  Development conducted;  12
            interpersonal and interdisciplinary competencies addressed in training curriculum; 4 support
            staff career paths identified, and; 60 interns are hired under the EPA Intern program in FY
            2000 and 20 in FY 1999.

Utilization of Performance-based Contracts

In 2002     EPA will improve the quality, effectiveness, and efficiency of EPA's acquisition and contract
            management  process  by  increasing the  percentage  of new  contracts  utilizing
            performance-based statement of works.

In 2001     EPA will improve the quality, effectiveness, and efficiency of EPA's acquisition and contract
            management  process  by  increasing the  percentage  of new  contracts  utilizing
            performance-based statement of works.

In 2000     The Agency exceeded its goal of 11% of its contracts using performance based statements
            of works.

In 1999     This goal helped to ensure a high level of integrity and accountability in the management of
            contracts.  EPA  exceeded its goal of 10% and was able to award 15% of its contracts as
            performance-based in FY 1999.
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Performance Measures:                  FY1999   FY2000    FY2001   FY2002
                                   Actuals    Actuals     Estimate   Request

Percentage of new contracts utilizing
performance-based statements of work.       15        24        11                  Percent

Percentage of total eligible service
contracting dollars for performance-based
contracts.                                                20        Percent

Baseline:   Baseline is 11% in FY 2000, 10% in FY 1999, 5% in FY 1998, and 0% in FY 1997.
Verification and Validation of Performance Measures

Performance Measure:  Percentage of outcome-oriented APGs/PMs in Agency's FY 2003
Annual Performance Plan and Congressional Justification

Performance Database: Internal tracking using the Budget Automation System (BAS).  Will
conduct a manual assessment of Congressional PMs characterized as outcomes.

Data Source: BAS and OCFO staff evaluation

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A

Performance Measure:   Agency's  audited Financial Statements and Annual Report are
submitted on time.

Performance Database: Output measure. No database.

Data Source: Audited Financial Statement, Budget Automation System and PERs reports

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A

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Performance Measure:  EPA's audited Financial Statements receive an unqualified opinion
and provide information that is useful and relevant to the Agency and external parties.

Performance Database: Internal tracking.  No database.

Data Source: Audited Financial Statements

QA/QC Procedures:  N/A

Data Quality Review: N/A

Data Limitations; N/A

New/Improved Data or Systems: N/A

Performance Measure: Percentage of total eligible service contracting dollars for performance
based contracts                                                ;

Performance Database: N/A

Data Source: N/A

QA/QC Procedures: Verification of these measures will require the objective assessment of
completed tasks by program staff and management

Data Quality Reviews: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A

Performance Measure: Percentage of backlog on non-construction grants closed out (output)

Performance Database: N/A

Data Source: N/A

QA/QC Procedures:  Verification of these measures will require the objective assessment of
completed tasks by program staff and management

Data Quality Reviews: N/A
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Data Limitations: N/A

New/Improved Data or Systems: N/A

Performance Measure: Number of regional offices awarding grants through the Integrated
Grants Management System. (Output)

Performance Database: N/A

Data Source: N/A

QA/QC Procedures:  Verification of these measures will require the objective assessment of
completed tasks by program staff and management

Data Quality Reviews: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A


Coordination with Other Agencies

      To achieve its mission, OCFO has undertaken specific coordination efforts with federal and
state agencies and departments through three separate vehicles: 1) the National Academy of Public
Administration's Consortium on Improving Government Performance; 2) Agency representation as
a member of the Natural Resources Performance Management Forum, which  consists of 16
departments or bureaus involved in the management or protection of natural resources; and 3) active
contributions to standing  interagency management  committees,  including the Chief Financial
Officers Council, the Federal Financial Managers' Council and the President's Council on Integrity
and Efficiency. These groups are focused on improving resources management and accountability
throughout the Federal government. OCFO also coordinates appropriately with Congress and other
federal agencies,  such as Department of Treasury, Office of Management and  Budget, and the
General Accounting Office.

      EPA will develop and issue guidance for executive agencies to use when purchasing goods
and services in response to Executive Order 13101  to show a preference for "environmentally
preferable" products and services.


Statutory Authority

Federal Manager's Financial Integrity Act (1982)


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The Chief Financial Officers Act (1990)

The Prompt Payment Act (1982)

The Government Performance and Results Act (1993)

Government Management Reform Act (1994)

Inspector General Act of 1978 and Amendments of 1988

Title 5 United States Code

Annual Appropriations Act

EPA's Environmental Statutes, and the Federal Grant and Cooperative Agreement Act

Federal Acquisition Regulations (FAR), contract law, and EPA's Assistance Regulations (40CFR
Parts 30, 31, 35, 40,45,46, 47)

Clinger-Cohen Act

Paperwork Reduction Act

Freedom of Information Act

Computer Security Act

Privacy Act

Electronic Freedom of Information Act
                                       X-24

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                            Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                  Effective Management

Objective # 3: Provide Quality Work Environment

       Effectively conduct planning and oversight for building operations and provide employees
with a quality work environment that considers safety, new construction, and repairs and that
promotes pollution prevention within EPA and with our state, tribal, local, and private partnerships.
                                    Resource Summary
                                   (Dollars in thousands)
                                          FY..1999
                                          Enacted
            FY2000
             Actual
FY2001
Enacted
FY 2002
Request
Provide Quality Work Environment.

    Environmental Program & Management


    Science & Technology

    Building and Facilities

    Leaking Underground Storage Tanks


    Oil Spill Response

    Inspector General

    Hazardous Substance Superfund

       Total Workyears
$358,709.5    $181,8923    $152,537.9    $141,812.2

$226,552.6     $85,509.7     $84,522.1     $76,239.5



  $7,423.2      $7,818,6     $21,405.7     $17,595.3

 $56,948.0     $62,443.2     $23,878.4     $25,318.4

  $1,119.6        $238.2        $302.1      $1,015.2
$659.9
$4,011.9
$61,994.3
55.4
$117.5
$23.4
$25,741,7
8,5
$10.4
$0.0
$22,419.2
9.1
$456.3
$0.0
$21,187.5
12.6
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                                       Key Programs
                                    (Dollars in thousands)
                                             FY1999
                                             Enacted
       FY2000
       Enacted
      FY 2001
      Enacted
      FY 2002
      Request
Superfimd - Maximize PRP Involvement (including
reforms)

New Construction: New Headquaters Project

New Construction :RTP New Building Project

Facility Operations: Repairs and Improvements

Facility Operations: Security

Facility Operations: Agency Rental/ Direct Lease

Facility Operations: Agency Utilities

Regional Program Infrastructure

Regional Science and Technology

Rent, Utilities and Security

Administrative Services

Regional Management
$32.1
$0.0
$0.0
$0.0
$14,833.4
$36,000.0
$15,428.0
$12,962.2
$170,571.8
$10,015.2
$60,133.6
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$1,372.5
$3,693.1
$16,265.4
$166.3
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$28,670.4
$1,369.5
$5,750.9
$22,172.8
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$6,032.1
$0.0
$6,922.0
$22,658.4
$20,566.2
FY 2001 Request

       This  objective  supports the  Agency's goal  for  Effective  Management through the
construction of new facilities, and the design and establishment of state-of-the-art laboratories. These
facilities provide the tools essential for researching innovative solutions to current and future
environmental problems and enhancing our understanding of environmental risks. EPA is well
engaged in the work of reducing energy consumed by operation of these facilities. In 2002, the
Agency will continue to optimize operating efficiencies and encourage the use of new and advanced
technologies and energy savings performance contracting.

       The 2002 budget for the Agency' s building operations and new construction supports existing
infrastructure requirements that ensure healthy, safe and secure work environments that reflect the
                                            X-26

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pollution prevention values of EPA and help fulfill the scientific and functional requirements of our
programs.

AgencyFacilities:

       The funding supports the space modification for the New Headquarters consolidation project.
The transition costs associated with occupying the Research Triangle Park complex will continue
in 2002 and include expenditures for decommissioning (the process necessary to meet federal
requirements to close down the old facility in an environmentally acceptable manner), utilities, and
furniture to achieve optimum space utilization. Additional rands for telecommunications and move
related costs are also required for the new headquarters consolidation.

Repairs and Improvements:

       The Agency will address critical repairs  related to employee health and safety,  and will
ensure that our facilities are in compliance with environmental statutes. EPA will support program
required alterations needed to accomplish the Agency's mission, move-related alterations, as well
as emergency repairs and maintenance for our laboratory facilities.

Facilities Operations:

       The facilities operations in both headquarters and the regions include space utilization;
preventive maintenance of existing space; property management; printing services; postage and mail
management services;  transportation services; recycling; and health, safety and environmental
compliance  activities,  including medical monitoring, technical assistance, audits, training, and
laboratory operations.
FY 2001 Change from FY 2000 Enacted

MULTI- APPROP

       (-$6,145,100 EPM, -$3,810,600 S&T) Reflects the completion of the new RTP facility. The
       remaining S&T resources are required to fund facility operations and construction oversight
       operations during the completion phase of the new RTP campus.

       (-$1,002,700  EPM, -$200,000 Superrand) Reflects a reduction to extramural regional
       facilities operations and support to fund cost of living increase for regional administrative
       services, which are allocated across the environmental goals.
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B&F
       (+$1,440,000 )  Provides for continued consolidation of EPA employees at the Federal
       Triangle Complex.  EPA acquired new space at the Federal Triangle Complex that was not
       planned, and because of the historical nature of the space, the cost of renovations are higher
       than anticipated.
Superfund
       (-$1,368,800) Redirection from Goal 10 to Goal 5 to better align laboratory resources that
       support the Environmental Goals.
Annual Performance Goals and Performance Measures

Energy Consumption Reduction

In 2002     EPA will implement 5 energy saving projects at EPA owned facilities.

In 2001     EPA will implement 5 energy saving projects at EPA owned facilities.

In 2000     EPA has implemented an aggressive strategy to reduce energy consumption in its facilities.
           As a result of this strategy, the Agency has reduced its total energy consumption by 19%
           over 1985 baseline.

In 1999     EPA continues to pursue its energy efficiency performance goals throughout its owned
           laboratory facilities which ensure the Agency achieves a high level of environmental,
           economical, and operational building safety. EPA implemented energy savings and pollution
           presenting at 4 labs.
Performance Measures:
Improve energy efficiency and reduce energy
consumption in EPA labs.

Energy consumption of BTUs per square foot.

Number of energy saving projects at EPA
owned facilities.
FY 1999
Actuals
FY 2000
Actuals
FY2001    FY2002
Estimate    Request
           304000
                                 Labs

                                 BUTsperSq/Ft
                                            Projects
Baseline:   In FY 2000, energy consumption of British Thermal Units (BTUs) per square foot is 320,000
           BTUs per square foot.

Facilities Projects

In 2002     EPA will ensure that all new and ongoing  construction projects are progressing and
           completed as scheduled.
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In 2002     EPA will ensure personnel are relocated to new space as scheduled.

In 2001     EPA will ensure that all new and ongoing construction projects are progressing and
            completed as scheduled.

In 2001     EPA will ensure personnel are relocated to new space as scheduled.

In 2000     All new and ongoing constructions projects progressed according to schedule.

In 1999     EPA is continuing renovation at Ariel Rios North and has completed 90% build out.  At
            present, renovation work continues and is on schedule. We met our goal in completing 50%
            of Interstate Commerce Commission building. We moved 31 % of EPA personnel to the new
            consolidated complex.

In 1999     EPA exceeded our goal by completing 60% of RTP new construction project. The facility
            will serve  as the flagship  for the  Agency's Research and  Sound Science efforts, it
            incorporates energy efficiency measures to save on utility requirements and sets the standard
            for laboratory construction.

In 1999     Construction was completed on time (February 1999) and within the established budget.
            EPA employees were subsequently relocated to the new laboratory facility and the building
            was officially dedicated in April 1999.
Performance Measures:


Percentage of the new RTP building
construction completed.

Percentage of the Interstate Commerce
Commission (ICC) building construction
completed.

Percentage of EPA personnel consolidated
into Headquarters complex.

Complete build out of Ariel Rios Building

Completion of lab construction at Ft. Meade.

Percentage of complete  build out of Customs
and Connecting Wing buildings.
FY 1999
Actuals
60



50


31

90

100
FY 2000
Actuals
80
80
40
FY2001
Estimate
100
100
52
FY 2002
Request
72
Percent



Percent


Percent

Percent

Percent
                        85
                        100
                        Percent
Baseline:    In 1999, the percentage of EPA personnel relocated to New Headquarters Complex is 38%,
            Research Triangle Park (RTP) construction baseline is 50 % completion, and the Interstate
            Commerce Commission baseline is 500% completion. The baseline for the build out of the
            Customs and Connecting Wing is 85% in FY 2001.

Energy Reduction Technology

In 2002     EPA will initiate a demonstration fuel cell at Ft. Meade Laboratory.
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In 2001     EPA will install a demonstration fuel cell at Ft. Meade Laboratory.

Performance Measures:                   FY 1999    FY2000    FY2001   FY2002
                                    Actuals    Actuals     Estimate   Request

Percentage of fuel cell components in place.                        10        50        Percent

Percentage of structure completed.                               100       100       Percent

Baseline:   Baseline will be established in FY 2001.  Project's first year was 2001.


Verification and Validation of Performance Measures

Performance Measure: Number of health and safety audits conducted on EPA facilities
(Output)

Performance Database: N/A

Data Source: N/A                                                 '      ••;

QA/QC Procedures: Verification of these measures will require the objective assessment of
completed tasks by program staff and management

Data Quality Reviews: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A

Performance Measure: Percentage  of complete build out of Customs and Connecting Wing
buildings (Output)

Performance Database: N/A

Data Source: N/A

QA/QC Procedures:  Verification of these measures will require the objective assessment of
completed tasks by program staff and management

Data Quality Reviews: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A

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Performance Measure: Number of energy saving projects implemented (Output)

Performance Database: N/A

Data Source: N/A

QA/QC Procedures: Verification of these measures will require the objective assessment of
completed tasks by program staff and management determined by the collection of data throughout
the year

Data Quality Reviews: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A


Coordination with Other Agencies

       EPA will develop and issue guidance for executive agencies to use when purchasing goods
and services  in response to Executive Order 13101 to show  a preference for "environmentally
preferable" products and services.


Statutory Authority

Federal Manager's Financial Integrity Act (1982)

The Chief Financial Officers Act (1990)

The Prompt Payment Act (1982)

The Government Performance and Results Act (1993)

Government  Management Reform Act (1994)

Inspector General Act of 1978 and Amendments of 1988

Title 5 United States Code

Annual Appropriations Act

EPA's Environmental Statutes, and the Federal Grant and Cooperative Agreement Act

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Federal Acquisition Regulations (FAR), contract law, and EPA's Assistance Regulations (40CFR
Parts 30, 31,35,40,45,46,47)

Clinger-Cohen Act

Paperwork Reduction Act

Freedom of Information Act

Computer Security Act
Privacy Act
Electronic Freedom of Information Act
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                             Environmental Protection Agency

            FY 2002 Annual Performance Plan and Congressional Justification

                                   Effective Management


Objective #4: Provide Audit and Investigative Products and Services

       Provide audit,  evaluation, and investigative products and advisory services resulting in
improved environmental quality and human health.
                                    Resource Summary
                                   (Dollars in thousands)
                                          FY 1999
                                          Enacted
           FY 2000
            Actual
FY 2001
Enacted
FY2002
Request
Provide Audit, Evaluation, and Investigative      $39,889.3     $39,361.8     $53,021.5     $53,207.6
Products and Services

    Environmental Program & Management          $592.2      $1,172.9      $7,527.8       $5,925.9
    Inspector General

    Hazardous Substance Superfimd

       Total Workyears
$39,297.1     $38,188.9     $45,493.7      $34,019.0

    $0.0          $0.0          $0.0      $13,262.7

   382.8         341.7         368.9         362.2
                                       Key Programs
                                    (Dollars in thousands)
                                             FY1999     FY2000      FY2001     FY2002
                                             Enacted     Enacted      Enacted     Request
Contract Audits

Assistance Agreement Audits

Program Audits
    $4,950.6      $5,439.5     $5,346.2      $5,200.0

    $6,830.5      $7,349.3     $5,352.1      $2,000.0

   $10,264.4     $11,025.6    $12,763.4      $4,900.0
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                                          FY1999     FY2000     FY 2001      FY2002
                                          Enacted     Enacted     Enacted      Request
Financial Statement Audits
Program Integrity Investigations
Assistance Agreement Investigations
Contract and Procurement Investigations
Employee Integrity Investigations
Planning, Analysis, and Results - IG
Program Evaluation - IG
Rent, Utilities and Security
Administrative Services
$4,187.5
$911.5
$2,650.4
$2,913.0
.$953.4
$0.0
$0.0
$0.0
$0.0
$4,334.3
$1,471.7
$2,762.8
$3,005.1
$991.8
$0.0
$1,636.3
$0.0
$142.2
$4,247.3
$1,483.1
$2,765.0
$2,979.7
$921.2
$1,612,2
$2,842.0
$7,033.4
$494.4
$4,000.0
$1,500.0
$2,900.0
$3,100.0
$1,000.0
$1,600.0
$15,000.0
$7,021.1
$300.5
FY 2002 Request

       The Office of Inspector General (OIG) provides audit, evaluation, investigative, and advisory
services that fulfill the requirements of the IG Act and contribute to improved Agency management,
environmental quality and human health. The work of the OIG supports the attainment of Agency
Strategic Goals and assists the Agency in resolving its top management challenges.  Audits and
program evaluations, selected based on relative risk, materiality, and results of past reviews, identify
best practices, areas for improvement, and cooperative solutions to problems. Investigations focus
on alleged fraud, waste, abuse, and other illegal activities by EPA employees, contractors, and
grantees. Investigations are also vital in identifying high-risk vulnerabilities, systemic weaknesses,
improvements in programs and operations, savings, and economic benefits.

During FY 2002, the OIG will continue its new directions of: 1) performing program evaluations
to provide Congress and the Agency with best practices, analyses, and recommendations to address
the most serious management challenges, accomplish environmental objectives, and achieve GPRA
goals;  2) partnering with others, including other Federal  and State auditors, evaluators, law
enforcement officials and associations who also have environmental missions, to leverage our
resources to attain maximum environmental benefits with available resources; and 3) implementing
human resource and knowledge management strategiesthat will ensure that the OIG has a diverse,
highly motivated and accountable staff with the skill sets and tools needed to perform increasingly
complex work.
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       More specifically, the OIG will concentrate its efforts during FY 2002 on the Air, Water,
WasteManagement, and Scientific Research programs, and will also focus on computer security and
the Agency's business systems.

       Air - The OIG's approach to assessing EPA's achievement of its clean air goal will include
       gaining  an understanding of key air programs and identifying major opportunities for
       cost-effective risk reduction.

       Water - The OIG will focus on gaining a better understanding of the overall needs and
       challenges in protecting the Nation's water resources, important regional or watershed issues
       like the Everglades and western farming, ensuring safe drinking water, assessing the need
       for better water quality monitoring  information,  determining the  extent  of water
       infrastructure needs and costs, and assessing the effectiveness of point and non-point source
       programs. Further, the OIG will assess whether the Agency has comprehensive contingency
       plans ensuring continuity and protection of essential water functions across a wide range of
       potential emergencies.

       Waste Management - The OIG will determine the extent of sites remaining to be cleaned
       up, the environmental risks these sites pose, and how efficiently and effectively EPA is using
       appropriated funds for cleanup of hazardous waste sites. Since many of the sites remaining
       to be cleaned up are on Federal lands, the OIG will work closely with the  GAO and other
       Federal IGs to accomplish our work.

       Scientific Research -The OIG will analyze EPA's scientific and peer review programs to
       evaluate their integrity and effectiveness in influencing program  management decisions
       including, improper activities in laboratory work used to support EPA decisions. Further,
       the OIG will continue an investigative initiative to uncover criminal activity in the conduct
       of laboratory work by contractors and others.

       Computer Security  - The OIG plans to: (1) monitor computer  security weaknesses
       previously identified by our office and GAO; (2) identify new and emerging vulnerabilities
       to computer security; and (3) advise the Agency of any  additional  computer security
       enhancements needed to reduce the risk of damage and disruption to EPA's critical systems.
       The OIG  will also continue performing criminal investigations of intrusive activities
       affecting EPA computer security and participate with other law enforcement agencies in the
       growing effort to protect  computer security.

       Systems - The OIG will evaluate EPA's organizational systems and capacity to achieve its
       mission and goals.   Specifically, the OIG will  identify  best practices and areas for
       improvement in the Agency's: (1) leadership, (2) strategic planning, (3) customer focus, (4)
       information systems and  analysis, (5) human resources management and development, (6)
       process  management, and (7) business results.  In addition, the  OIG will evaluate the
       Agency's systems of financial, management and administrative controls, and the integration


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       of performance measures to protect EPA's resources and make sound, well-supported
       decisions.

       Financial auditing of assistance agreements will decrease during FY 2002 due to the
substantial completion of the risk-based strategy of the Construction Grant Program. The Agency
has declared close-out of the program as a material weakness until FY 2002, and the OIG is
committed to audit or return for close-out, any grant within 12 months of a request, and assist the
Agency as needed. The OIG also anticipates devoting fewer resources to auditing the Agency's
financial statements as OIG staff become more efficient and the Agency's controls improve.

       Investments in program audits will decrease since the OIG has shifted resources to perform
program evaluations. The primary emphasis of those evaluations will be on determining whether
EPA has designed the programs, projects, and tasks within the goals, objectives, and sub-objectives
reported to Congress under GPRA to achieve the desired results and impacts in the most efficient
and cost-effective manner. The OIG anticipates that the process will develop and evolve over time.
While  completion  of  final  products synthesizing  results for the whole of a program  may be
protracted, the OIG expects to provide many useful intermediate products during the systematic
process to help management improve their programs and Congress to better understand how EPA
is implementing authorized programs.  Program evaluations are staffed with a mix of scientists,
auditors, evaluators, economists, and others from within and outside the OIG, .often assigned on a
temporary basis, to provide flexibility and a diverse range of skills as our evaluation approach is
refined.

The OIG product line includes:
       Contract Audits determine the allowability, allocability, and reasonableness of costs claimed
       by contractors. They include audits of EPA contractors' indirect cost proposals, pre-award,
       interim, and final contract cost submissions.

       Assistance Agreement Audits consist of financial audits of EPA's State Revolving Fund
       programs, Performance Partnership Grants, interagency  agreements,  and cooperative
       agreements, all of which  provide assistance  to  state, local and tribal governments;
       universities; and nonprofit recipients. Our work builds on the Single Audit Act and focuses
       on resource-intensive, high-risk programs.

       Financial Statement Audits consist of  audits  of the  Agency's financial systems and
       statements to ensure that adequate controls are in place and the Agency's accounting
       information is accurate, reliable and  useful, and  complies  with applicable laws and
       regulations. Our objective  is to assist EPA in making improvements in the financial
       management processes and controls which will provide better information for decisions
       promoting the most cost-effective results.
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       Systems Audits review the economy, efficiency and effectiveness of operations by examining
       the Agency's  leadership systems, its strategic planning, human resources development,
       customer focus and process management. These reviews also focus on the integration of
       performance and financial information to manage and assess results, and determine the extent
       of compliance with applicable laws and regulations to improve the integrity and management
       of assets and resources.

Program Audits and Evaluations

       Program Audits and Evaluations use sophisticated analytical tools, methodologies and
       specialized skills, applied with a broad perspective to determine the extent to which the
       desired results or benefits envisioned by the Administration and Congress are being
       achieved.  Our program audit work includes evaluating whether EPA's contracts and
       assistance agreements are being awarded and administered in  a manner that supports
       achievement of the Agency's environmental mission. Program Evaluations involve the
       systematic measurement and analysis of environmental, economic, and other external
       outcomes, benefits, and results in relation to the application of resources and legislative and
       policy initiatives. They assist the Agency in implementing the Government Performance and
       Results Act (GPRA) by selectively verifying and validating performance measures, data, and
       results. Four types of evaluations include:

             Process:     Assesses  the  extent to which  a program is operating as it was
                          intended.
             Outcome:     Assesses the extent to which a program achieves its outcome-oriented
                          objectives.
             Impact:      Assesses net effect of a program by  comparing outcomes with the
                          absence of the program.

             Cost Benefit:  Compares the program's  outputs or  outcomes with the costs to
                          produce them.
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         Phases of Program Evaluation

         Phase I Evaluations fflgv/'ew) (1) Reviews of program offices' GPRA plans to assess whether relationships between
         environmental programs and outcomes are documented and understood; (2) reviews of available performance
         information on key processes, outcomes, impacts, and cost-benefits; (3) prioritizing possible evaluation questions
         and issues; (4) incorporating Phase I findings into "knowledge baseline" report highlighting major information gaps;
         and (5) developing Phase II plans.

         Phase II Evaluations (Analysis) (1) The conduct and coordination of multiple evaluations of program performance,
         including process, outcome, impact and cost-benefit evaluations as defined and prioritized in Phase I; and (2)
         development of individual program performance evaluation/audit reports including practical opportunities for
         improving performance, measured by program outcomes and impacts.

         Phase III (Synthesis) (1) Combining the results of Phase I and II into a comprehensive picture of the environmental
         program, its GPRA planning structure and baseline performance; and, (2) presenting recommendations for improving
         the planning  structure, filling data gaps,  and making programmatic changes that will  result in significant
         improvements in the program's environmental performance.
Investigations

       Program Integrity Investigations focus on activities that could undermine the integrity of
       Agency programs concerning safety and public health, and erode public confidence in the
       Agency. These cases are initiated in response to allegations or may be self-initiated in high-
       risk areas where there is reasonable suspicion of fraud,

       Assistance Agreement Investigations focus on criminal activities related to Agency grants,
       State Revolving Funds, interagency agreements, and Cooperative Agreements that provide
       assistance to state, local, and tribal governments, universities, and nonprofit recipients.

       Contract and Procurement Investigations focus on acquisition management, contracts, and
       procurement practices, and specifically concentrate on cost mischarging, defective pricing,
       and collusion on EPA contracts. The decentralized nature, complexity, and the lack of a
       central vendor and subcontractor database increase the Agency's vulnerability to contract
       fraud.

       Employee Integrity Investigations involve allegations against EPA employees that could
       threaten the credibility of the Agency. Employee integrity investigations are conducted to
       maintain the integrity of EPA personnel.

       Computer Forensic Investigations identify and counter illegal intrusions of EPA's computer
       systems. Through a specialized computer intrusion unit, the OIG will coordinate with the
       FBI's National Infrastructure Protection Center, and with the  U.S. General Accounting
       Office's (GAO) Federal Computer Intrusion Response Center.

Advisoryjand-A-Ssistance Services
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Includes a wide range of products and services designed to give managers information they
need more expediently man audits, and to assist EPA management in assessing and/or
implementing control systems and processes. They often focus on working with Agency
managers to develop solutions to known problems or to design systems and controls to
prevent problems in new programs and activities. These services include:

*      Review and analysis of proposed and existing legislation and regulations
•      Assessment of Agency implementation of GPRA and advice on improved planning,
       measurement, accountability, linkages, data quality, and reporting;
•      Review and assessment of internal, financial and management controls;
•      Fraud prevention awareness and techniques; and,
•      Presentations, workshops, and analysis of management improvement techniques.
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   Envlram
    Impact
   Creating a Nexus or Link Between GIG Products/
   Services and Environmental Impacts/Goals
Linking Our Work to Outcomes and Impacts

All of  our work is planned based on  the
anticipated value toward influencing resolution
of the Agency's major management challenges,
reducing risk, improving practices,  program
operations  and saving taxpayer dollars, while
leading  to  the attainment of EPA's  Strategic
Goals.

       Our strategic  plan aligns OIG products
and services with current Agency goals  and
priorities based upon emerging issues, legislative
initiatives,  needs of various customers, clients
and stakeholders and multiple dynamic external
factors.  The OIG will prepare clear,  accurate,
timely,  and  independent  reports   to   the
Administrator, Congress, and the public summarizing the OIG's work results and demonstrating
value to the Agency and taxpayers. The OIG will maintain a process for identifying, collecting,
analyzing,  and  reporting performance and resource information as  required by  GPRA, and
management assessment reviews will be conducted to ensure that the high quality of OIG work is
maintained.

       Further, the OIG will provide human resource support and develop applications of computer
technology for fast,  economical  information that increases operational capacity and customer
responsiveness.  Technology is one of the OIG's primary means to make administrative reforms and
apply a greater percentage of staff to direct mission objectives.

       The following are internal OIG activities which are necessary to ensure that the OIG obtains
the greatest return on its investment for the Agency by contributing to the performance of audits,
evaluations, and investigations:

       Program Management - Activities of the Immediate Office of the Inspector General which
       provide leadership, overall direction, policy, and management of OIG operations. These
       activities also include independent legal services provided by the OIG Counsel.

       Planning,  Analysis, and Results - Activities to develop strategic and annual  performance
       plans, budgets and accountability reports in compliance with the IG Act, as amended, and
       GPRA that clearly link all resources to progress hi achieving organizational objectives and
       results. These activities provide the catalyst to effective controllership, decision-making and
       operational changes for the best application of resources. They also identify customer, client
       and stakeholder needs, and opportunities for responsive collaboration with Federal, state,
       local and private entities.
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       Human Capital - Activities involving the management, coordination and supervision of OIG
       Resource Centers for audits, evaluations and investigations. Activities include mentoring
       and coaching staff on career management and providing career development opportunities;
       monitoring and assisting offices with OIG work plan implementation;  assigning Resource
       Center staff based on assignment needs and employee career development requirements;
       monitoring OIG competencies and skills for recruiting goals; providing quality assurance that
       assignments meet professional standards such as GAO and OIG standards; providing
       customer relations and marketing of OIG products and services to EPA officials, partners and
       stakeholders; leading efforts to improve the  audit, evaluation and investigative processes;
       making OIG reports and products more responsive to customer needs; and providing better
       services to EPA.

       Human Resource Systems - Activities to provide a fully-staffed,  highly-qualified, and
       culturally-diverse workforce supported by appropriate and efficient administrative services
       to maximize application of OIG staff time on direct mission work.

       Information Systems - Activities for  the   acquisition and maintenance of information
       technology hardware and software, and the development, implementation, and maintenance
       of knowledge management applications. These activities result in better, cheaper, and faster
       communications and products, thereby improving OIG efficiency and its  value to the
       Agency.

       Working Capital Fund - Activities funded by the OIG and managed by the Agency which
       provide computing (desktop connectivity), communications (E-mail, voice mail, long-
       distance telephone service) and postage services to the OIG staff nationwide. These are fee-
       for-serviee activities designed to promote economy and efficiency.
FY 2002 Change from FY 2001 Enacted

Kz

•      (+$392,300, -6.7 FTE) This increase reflects an increase in workforce costs. The reduction
       of 6.7 FTE will be reflected in: 1) a decrease in financial audits of assistance agreements due
       to the substantial completion of the risk-based strategy of the Construction Grant Program,
       and 2) fewer resources devoted to auditing the Agency's financial statements as staff become
       more efficient and the Agency's controls improve.


Annual Performance Goals and Performance Measures

Fraud Detection and Deterrence
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In 2002     Improve Agency management and program operations by identifying savings, recoveries, and
            fines equaling the annual investment in the OIG, and by preventing fraud and reducing the
            risk of loss through 50 criminal, civil, or administrative actions.

In 2001     Increase effectiveness in detecting and deterring fraud and other improprieties that undermine
            the integrity of Agency programs and resources.

In 2000     OIG met its goal to increase its effectiveness in detecting and deterring fraud and other
            improprieties by increasing the number of assistance  agreement and contract cases,
            improving the percentage of cases referred for action, and reducing the average time for case
            completion.

In 1999     Office of Investigations increased its effectiveness in detecting &  deterring fraud & other
            improprieties by increasing the number of assistance agreements & contract cases, improving
            the % of cases refered for action, reducing average time of case completion, & more fraud
            awareness briefings.
Performance Measures:
Monetary value of fines, judgements,
settlements, restitutions, and savings.

Judicial, administrative, and other actions
taken to enforce law, reduce or avoid risk.

Percentage of cases completed resulting
in referrals.

Percentage of cases completed or
referred within one year.

Number of judicial, administrative,
or other actions taken.

Return on the annual dollar investment in the
OIG
FY 1999
Actuals
$.8
73


FY2000
Actuals
70.8
107
51.3
48.2
                                                        FY2001
                                                        Estimate
                                                        4.3
                                                        50
                                                        37.6
                                                        53
                        FY2002
                        Request
                                                                    50
                                                                    100
                                    Million
                                    Actions
                                    % Of Cases
                                    % Of Cases
                                    Actions
                                    Percent
Baseline:    In FY 200I, the OIG will identify savings, recoveries, and fines at a baseline of $44.3 million
            and reduce the risk of loss through criminal, civil, or administrative actions at a baseline of
            54 actions.
Resources Management

In 2002
Produce timely, quality, and cost-effective products and services that meet customer needs
by providing the right product, at the right time to the right customers, at the right cost that
achieve an overall customer satisfaction rate 79 percent.
Performance Measures:
Overall customer satisfaction rate.
                                FY 1999
                                Actuals
FY 2000
Actuals
FY2001
Estimate
FY 2002
Request

79
                                                                                Percent
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Baseline:    Baseline will be established in 2001.

Audit and Advisory Services

In 2002     Improve environmental quality and human health by recommending 50 improvements across
            Agency environmental goals, identifying and recommending solutions to reduce 15 of the
            highest environmental risks, and identifying 15 best environmental practices.

In 2001     Provides independent audits, evaluations, and advisory services, responsive to customers and
            clients, leading to improved economy,  efficiency and effectiveness in Agency business
            practices and attainment of its environment goals.

In 2000     OIG provided timely, independent auditing and consulting services responsive to the needs
            of customersfetakeholders by identifying opportunities for increased economy, efficiency, and
            effectiveness in achieving environmental results. OIG audit products and services are more
            customer and goal driven.

In 1999     The Office of Inspector General provided objective, timely, and independent auditing,
            consulting, and investigative services through such actions as completing 24 construction
            grant closeout audits.
Performance Measures:
FY 1999
Actuals
Potential monetary value of recommendations,
questioned costs, savings and recoveries.       124.9
Examples of IG recommendations/advice or
actions taken to improve the economy, efficiency,
and effectiveness of business practices and
environmental programs.
FY 2000
Actuals
            55.3
FY2001
Estimate
            40
FY 2002
Request
                        Million
60

24
78
55
Construction Grants Closeout Audits

Overall customer and stakeholder satisfaction
with audit products and services (timeliness,
relevancy, usefulness and responsiveness.

Number of environmental improvements made
and reductions in environmental risks
Number of best environmental practices identified
            76
            77
                                   65

                                   15
            Examples

            Audits



            Percent


            Improvements

            Practices
Baseline:    In FY 2001, the OIG will recommend improvements across the Agency environmental goals
            and recommend solutions to reduce the highest environmental risks at a baseline of 68
            recommendations.
Verification and Validation of Performance Measures
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Performance Measure: Number of environmental improvements made and reductions in
environmental risks

Performance Database: The Management Accountability System is an electronic file used to retain
information on the progress and results of assignments for the current fiscal year.

Data Source: Office of Inspector General (OIG) staff are responsible for entering data into the
system.

QA/QC Procedures: Data accuracy is subject to reviews by OIG management and an  OIG
Management Assessment Review Team. In addition, the OIG issued Audit Management Guidance
96-01, "Guidance for Preparing Status of Ongoing Assignments" to promote consistency in data
collection and accuracy.

Data Quality Reviews: There has not been any previous audit findings or reports by external groups
on data weaknesses in the Management Accountability System.

Data Limitations: All OIG staff are responsible for data accuracy. However, there is the possibility
of incomplete or missing data due to human error.

New/Improved Data or Systems: The OIG anticipates automating procedures for data collection
pertaining  to recommendations  for improvement,  reductions of environmental  risks,  and
identification of best practices.

Performance Measure: Number of best environmental practices identified

Performance Database: The Management Accountability System is an electronic file used to retain
information on the progress and results of assignments for the current fiscal year.

Data Source: Office of Inspector General (OIG) staff are responsible for entering data into the
system.

QA/QC Procedures: Data accuracy is subject to reviews by OIG management and an  OIG
Management Assessment Review Team. In addition, the OIG issued Audit Management Guidance
96-01, "Guidance for Preparing Status of Ongoing Assignments" to promote consistency in data
collection and accuracy.

Data Quality Reviews: There has not been any previous audit findings or reports by external groups
on data weaknesses in the Management Accountability System.

Data Limitations: All OIG staff are responsible for data accuracy. However, there is the possibility
of incomplete or missing data due to human error.
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New/Improved Data or Systems: The OIG anticipates automating procedures for data collection
pertaining to  recommendations  for improvement,  reductions of environmental  risks,  and
identification of best practices.
Coordination with Other Agencies

       The EPA Inspector General is a member of the President's Council on Integrity and
Efficiency (PCIE), an organization comprised of Federal Inspectors General (IG).  The PCIE
coordinates and improves the way IGs conduct audits and investigations, and completes projects of
government-wide interest.  The EPA OIG created an Environmental Consortium in May 2000
through the PCIE and the Executive Council on Integrity and Efficiency. The Consortium, which
seeks effective solutions to cross-cutting environmental issues, currently includes representatives
from 19 executive agencies and GAO.  The OIG also participates with various inter-governmental
audit forums, professional  associations, and  other  cross-governmental forums to  exchange
information, share best practices and directly collaborate efforts.
Statutory Authorities

Inspector General Act of 1978, as amended

Chief Financial Officers Act

Government Management Reform Act

Federal Financial Management Improvement Act
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Comprehensive Environmental Response, Compensation and Liability Act




Food Quality Protection Act
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Special Analysis

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                 ANNUAL PERFORMANCE PLAN COMPONENTS

Introduction

      The Agency's approach to annual planning under the Government Performance and Results
Act (GPRA) is based on a full integration of strategic planning, annual planning, budgeting, and
accountability. The Agency's Annual Plan and Budget submission to OMB reflects this integration;
all of the components of the Annual Plan are contained within the Budget.  In addition, to fully
explain the Agency's resource needs, the Budget contains a set of annual performance goals and
performance measures broader than what will be included in the Annual  Plan submission to
Congress under GPRA. The Agency will submit a stand-alone Annual Plan to Congress to meet the
legislative concern expressed in  GPRA  that "annual plans not be voluminous presentations
describing perfbrmance...for every  activity.   The annual plan and reports are to inform, not
overwhelm the reader,"

Annual Plan Organization

      The Annual Plan  submission to Congress contains the following elements of the Agency's
Annual Plan and Congressional Justification:

I.     Goals
             Goal Statement
             Background and Context
             Means and Strategy
             External Factors
             Goal Resources

II.    Objectives
             Objective Statement
             Key Program Resources
             Annual Performance Goals and Performance Measures:
                    (The set  of APGs included hi the Annual Plan are those reported in the
                    Budget Goal Overview. The APGs and PMs in the Annual Plan represent the
                    most significant accomplishments planned for FY2001, and are intended to
                    be used to evaluate the Agency's performance under GPRA.)
             Verification and Validation of Performance Measures

III.   Appendix
             Customer Service Program
             Costs and Benefits of Economically Significant Rules
             Major Management Issues
             Use of Non-Federal Parties in Preparing this Annual Plan
             Relationship Between the Annual Plan and the Strategic Plan
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                      MAJOR MANAGEMENT CHALLENGES

Introduction

       One of the most critical challenges facing federal managers today is preserving the public's
trust in the integrity of government programs. EPA is strongly committed to achieving its goals and
objectives in a manner that maintains this integrity.  Over the past several years EPA senior
managers have placed a high priority on strengthening results-based management and overall
accountability and on improving the efficiency and effectiveness of environmental programs.

       EPA made substantial progress in the last decade toward resolving programmatic and
administrative issues that had the potential to impact the Agency's ability to achieve its mission.
Since 1990 EPA has corrected 27 integrity weaknesses and numerous management challenges. One
of the most significant accomplishments is the progress the Agency has made in addressing General
Accounting Office (GAO) concerns regarding the Superfund program. In F Y1990 GAO designated
Superfund as a high-risk area, citing recurring management problems that heightened the risk of
fraud, waste, abuse, and mismanagement.  After ten years, in its January 2001 report, High-Risk
Series: An Update, GAO removed the Superfund program from the high-risk list, indicating that
EPA had made significant progress in addressing this long-standing management challenge and has
demonstrated a continuing commitment to these efforts.

       In its November 30, 2000  letter to Congressman Dick Armey, EPA's Office of Inspector
General (OIG) reported that the Agency had make significant progress in two areas previously
identified as major management challenges.  First, EPA is progressing faster than expected in
eliminating the backlog of Superfund five-year reviews.  Completion of the remaining corrective
actions is expected by the end of FY 2002.  Second, the majority of the OIG recommendations
regarding the Great Lakes Program have been resolved and EPA is committed to completing the
Great Lakes Strategy.

       Over the next several years EPA faces a number of management challenges, including two
that the GAO January 2001 high-risk update identified as government-wide high-risk areas:  (1)
human capital management, and (2) information security. Information is provided below on efforts
underway to address these issues and other critical management challenges facing the Agency.

Human Capital Strategy Implementation

       EPA faces significant challenges in maintaining a workforce with the highly specialized
skills and knowledge required to accomplish the Agency's work.  The challenges EPA faces  are
faced by many organizations where the core work must be performed by scarce, highly sought-after
scientific and technical experts. The expected retirement of a large number of senior employees over
the next several years threatens to  deplete EPA's pool of critical skills. The Agency must devote
considerable attention to building a workforce with the highly specialized skills and knowledge
required or  risk  seriously weakening its ability to fulfill its  legal, regulatory, and fiduciary
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responsibilities. DIG identified EPA's employee competencies as a major management challenge
in FY 1998-2000. GAO identified human capital as a management challenge for EPA in FY 2000
and as a government-wide high-risk area in FY 2001. The Agency declared human capital strategy
implementation as an internal Agency weakness in its FY 2000 Integrity Act Report and laid out a
comprehensive corrective action plan.

       The corrective action strategy is based on the Agency's Human Capital Strategic Plan, which
provides a blueprint for the initial and longer-term steps. The Strategy represents the first time the
Agency has developed a strategic direction for investing in and managing the Agency's  human
resources. Under the umbrella of the Human Capital Strategy, the workforce assessment program
calls for identifying the  skills needed in every program unit based on an assessment of future
program needs, determining the gap between those needs and the current state, and tying those needs
to future  budget development.   Developmental  programs aimed at support  staff, mid-level
professionals, managers,  and the Senior Executive Service (SES) are either being implemented or
in final design stages.  The first SES Candidate Development Program to be offered in more than
a decade will begin this spring. During F Y 2000 EPA recruited the third class of interns, providing
the Agency with a diverse, high-potential cadre of future leaders, and tasked Agency managers and
employees to continue to work collaboratively in accomplishing diversity action goals and ensuring
review of the Agency's hiring, promotion, and award practices.  Completion of corrective  actions
is expected by FY 2003.

Information System Security

       The availability and reliability of environmental information is dependent on the security of
the technology platform on which it resides. OIG and GAO reviews and audits found that EPA's
security plans for many  of the Agency's major applications and general support systems  were
deficient or non-existent. The oversight agencies believe that EPA needs a centralized security
program  with strong oversight processes to address risks adequately and  ensure that valuable
information technology resources and environmental data are secure. The Agency is strengthening
its information security  program by instituting a comprehensive strategy  that incorporates all
security-related deficiencies. OIG identified EPA's information system security as a management
challenge in FY 1997-2000, and GAO and OMB identified it as a major management challenge in
FY 2000.  EPA  declared information system security as a material weakness in FY 1997 and
expanded the weakness in FY 2000 to take a systematic approach to correct the security problems
and to address fully Agency, OIG, GAO and OMB concerns.

       EPA has made substantial progress toward ensuring the security of its information assets.
Following a FY 2000 audit by GAO, EPA temporarily disconnected its network from the Internet
to accelerate installation of improved security features.  EPA has taken steps to further separate the
entire EPA Wide Area Network from the Internet and to implement better approaches to monitor,
detect, and deter Internet attacks and unauthorized users. During F Y 2000 the Agency established
a special Technical Information Security Staff to provide a focal point for protecting the Agency's
information.  Additional corrective actions currently underway include completing security risk

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assessments of critical applications and systems, evaluating network and data security, conducting
training, certifying security plans for all critical security systems, finalizing EPA' s National Network
Security Policy, validating success of policy and guidance, and conducting random program office
formal security plan reviews of mission-critical systems. All corrective actions are expected to be
completed by the end of FY 2002.

Data Management Practices

      EPA's information management challenges, which focus on several major themes, were
identified in one or more audits conducted by OIG and GAO. To address these challenges, EPA
needs to improve the management, comprehensiveness, consistency, reliability, and accuracy of its
data to help better measure performance and achieve environmental results. In addition, EPA needs
to develop error detection processes to ensure that errors in EPA databases are appropriately
addressed  in a timely and documented fashion.  OIG and GAO identified EPA's information
management as a major management challenge in FY 1998-2000.  OMB also identified it as a
management challenge in FY 2000. EPA  broadened the scope of an existing internal Agency
weakness on Data Management in FY  2000 to consolidate the Agency's efforts to address the
multiplicity of issues related to data management, accuracy, and error correction.

      EPA's new Office of Environmental Information (OEI) was established early in FY 2000
with the challenge to integrate the Agency's information policy, management, and technology. EPA
is working internally and  in partnership  with the  states  to  improve  the  management,
comprehensiveness, consistency, reliability, and accuracy of its data  to help better measure
performance and achieve environmental  results.  To ensure the strong leadership  needed for
improving the quality of EPA's information, the Agency established the Quality Information Council
(QIC) of representatives from the Agency's senior management. In FY 2000, the QIC presided over
an assessment of the quality of information in four of the Agency's data systems.

      EPA, states, and tribes formed the Environmental Data Standards Council to promote further
development and implementation of key data standards. Work is underway to develop additional
standards for permitting, enforcement and compliance, tribal identifiers, and geolocational data in
FY 2001. All six data standards previously adopted by the Agency are now in the process of being
implemented, as appropriate, in its  information systems.  The systems are at varying stages of
adopting standards, but all of the thirteen major data systems have completed implementation of at
least one of the six data standards, and at least  one system has implemented all of the applicable
standards. In addition, as part of its environmental information integration effort, EPA developed
a 5-year Integration Management Plan that outlines a series of specific actions and milestones.

      To further achievement of shared Agency/state objectives for improving data management
integration, EPA collaborated with the states to develop a Network Blueprint that outlines the plans
and components required to establish a national network for exchange of environmental information
and defines how it will operate. The components include data standards, data exchange templates,
trading partner agreements, a central data exchange infrastructure, a Facility Registry System, and

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other data registries.  EPA is also working to expand implementation of its Integrated Error
Correction Process, developed in July 2000. Since that time, 195 errors have been reported, of
which 78 have been resolved. (Almost 100 data points reported as errors have been investigated and
found to be correct.) EPA is also developing a Data Quality Strategic Plan to improve the quality
and reliability of environmental data, as well as an Agency-wide Enterprise Architecture that will
guide the creation and revision of EPA's programmatic and regional information systems. The
Agency anticipates that all corrective actions will be completed by the end of FY 2002.

Results-Based Information Technology Project Management

       EPA and its partners need to plan strategically for implementing a common data architecture,
data standards, geospatial information, and one-stop  electronic reporting in order to  share
environmental information with their diverse partners and stakeholders to facilitate environmental
protection efforts.  In addition, the Agency needs to ensure that information technology projects are
timely, cost-effective, and results-based.  OIG identified results-based information technology
project management as a major management challenge in F Y 2001, citing concerns with the current
structure of EPA's investment process and the Agency's ability to track information technology
development and implementation effectively.

       EPA has already begun to address the systemic issues of information technology project
planning and management. For example, EPA's environmental information integration effort
provides a new approach to state-data relationships and new technologies. Over the next few years,
EPA plans to develop a more robust and rigorous program to meet the architectural and investment
management requirements of the Clinger-Cohen Act. As part of this effort, EPA plans to expand
its project management review criteria for projects with annual costs greater than $1 million or
system life cycle costs of more than $5 million to ensure greater accountability and capability to
produce results.

Laboratory Quality System Practices

       Many of the Agency's programmatic and enforcement decisions are based on environmental
data produced by EPA and contract research and analytical laboratories. Having data that are timely
and of the appropriate quality is critical to understanding environmental processes and to making
decisions that will support the protection of human health and the environment.  Through internal
reviews and OIG investigations, the Agency has found management control weaknesses and some
cases of misconduct in laboratories concerning  data quality that could impact environmental and
enforcement decisions. OIG identified lab data quality as amajor management challenge in F Y1999
and 2000, and the Agency declared it as an internal Agency weakness in F Y 2000.

       In FY 2000 the Agency completed independent technical reviews of its regional laboratories
to assess EPA's ability to produce data of known and documented quality.  The Agency will
complete reviews of the remaining laboratories by the end of FY 2001.  Ongoing actions include
assembling a workgroup consisting  of both EPA and non-EPA members that will (1)  identify


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weaknesses in laboratory quality systems that produce analytical data used for Agency decision
making; (2) establish methods to detect and deter misconduct in labs; and (3) promote best practices
in laboratory performance, documentation, and implementation.  In addition, each EPA office and
region will be responsible for establishing management controls to ensure that  environmental
measurement data supplied by laboratories is of known and documented quality. This effort includes
monitoring and oversight of the development  and implementation of Agency-approved quality
systems by third parties.  Completion of corrective actions is expected by December 2003.

Backlog of Title VI (Civil Rights Act of 1964) Discrimination Complaints

       Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color,
or national origin by any entity that receives federal financial assistance.  EPA's program to
investigate Title VI complaints has been hindered by language from the  FY 1999 Appropriations
Subcommittee (October 1998) and similar language in subsequent years. As a result, the number
of Title VI administrative complaints that require an investigation or a jurisdictional determination
by EPA is 61 and growing. EPA self-identified this problem and declared it as a material weakness
in FY 2000.

       The Agency is undertaking several actions to improve its ability to manage discrimination
complaints under Title VI by focusing on preparatory work prior to  actual adjudication.  EPA is
temporarily assigning additional case managers to expedite processing and reduce the current
backlog of administrative complaints that require either an investigation or a jurisdictional
determination.  In addition, the  Agency is working to improve the long-term efficiency of the
program by developing needed guidance on processing complaints; issuing standardized procedures
on preparing complaints for the investigation process; drafting protocols for conducting adverse
impact analyses and statistical demographic analyses; and reducing the processing time for sending
letters on acceptance, rejection, or referral of complaints. Corrective actions will be completed by
the end of FY 2001.

Deficiencies in Internal Employment Discrimination Complaints Resolution Process under
Title VII (Civil Rights Act of 1964)

       Title VII requires that EPA implement and manage an effective federal  discrimination
complaints process that provides employees and applicants for employment an opportunity to seek
redress. Difficulty in managing the Equal Employment Opportunity (EEO) process in a timely
manner is attributable to  several factors, including (1) inadequately trained counselors; (2) lack of
accurate and timely data in the tracking system; (3) late, incomplete, and/or missing discussion of
allegations in counselors' reports; (4) an inability to utilize the automated data tracking system
effectively; (5) insufficient contractor support to manage the investigations process; and (6) a lack
of staff to handle the current inventory of 269 complaints. EPA self-identified this problem and
declared it as a material weakness in FY 2000.

       Corrective actions currently underway include using attorneys from EPA's Civil Rights Law
Office to review and provide advice on final Agency decisions, providing regions with monthly

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status reports on their inventory of complaints and overdue reports and with feedback on their
inadequate submissions, and devoting more attention to each area of the process currently needing
improvement.  Completion of corrective actions is expected by September 2001.

National Pollutants Discharge Elimination System (NPDES) Permits

       The Agency is responsible for establishing controls on pollutants discharged from point
sources into waters of the United States. The NPDES program (which includes NPDES permits for
municipal and industrial discharges, urban wet weather, concentrated animal feeding operations,
pretreatment of non-domestic wastewater discharges into municipal sanitary sewers, and biosolids
management controls) is a key element of the Agency's effort to achieve its goal of clean and safe
water.  OIG audits in 1998 identified significant delays in issuing permits and a substantial backlog
in the permitting process for pollutant dischargers into surface waters.  The backlog is a threat to the
environment because expired NPDES permits might not reflect the most recent applicable effluent
limitation guidelines, water quality standards, or Total Maximum Daily Loads. The NPDES permit
universe will be expanding to cover additional storm water discharges and concentrated animal
feeding operations. OIG identified the NPDES permit backlog as a major management challenge in
FY 1998-2000. EPA declared it as a material weakness in its FY 1998 Integrity Act Report and
began to implement an extensive corrective action plan.

       EPA put in place an aggressive strategy to reduce the backlog of NPDES permits in regions
and states.  This strategy included four ongoing initiatives to better define the backlog, examine
permitting efficiencies and facilitate programmatic and technical streamlining opportunities, provide
funding and technical support for regions and states, and encourage regions and  states to share
technical expertise and permitting tools.  At the request of EPA's Deputy Administrator, EPA
Regional Administrators submitted a backlog reduction plan for every state and territory in their
region, committing to a goal of eliminating the backlog  for major permits in 2001. The backlog
reduction strategies developed by the regions reaffirm the commitments  of the states and regions to
meet the Agency's backlog reduction targets.  During FY 2000 the backlog of EPA-issued major
NPDES permits was reduced from 46 percent to 30 percent. Some states are leading the way, eleven
states are already below the 10 percent backlog target and a total of 18 states are on track to meet
the target by December 31,2001. EPA expects to reduce the backlog of major and minor permits
to 10 percent by FY 2005.

Safe Drinking Water Information System (SDWIS)

       SDWIS,  an "exceptions" database,  focuses  exclusively  on public water systems'
noncompliance with drinking water regulations (health-based and program).  States implement
drinking water regulations with the support of the Public  Water System Supervision (PWSS) grant
program. States with primacy determine whether public water systems have violated  maximum
contaminant levels (MCL), treatment technique requirements, consumer notification requirements,
or monitoring-and-reporting requirements, and report those violations through SDWIS. In 1998
EPA supported a series of data verification audits,  the results of which pointed out serious data

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quality and reliability issues. OMB identified SDWIS as a management challenge for the Agency
in FY1999 and EPA declared it as an internal Agency weakness. Completion of corrective actions
is expected during FY 2001.

       Two important steps completed by the end of 1999 included (1) an industry survey analysis
in which water utilities examined and compared data in SDWIS with their own data; and (2) a study
of the variety of ways that states are organized to carry out  their drinking water program
responsibilities and the effects of these organizations on the way in which data are collected. During
FY 2000 the Agency developed and implemented state-specific training for data entry into SDWIS,
conducted data verification audits in 12 states, and developed a new transaction processing and
tracking report.

       In  partnership with the states  and  major stakeholders,  EPA developed  a  long-term
information strategy to address drinking water data collection and data management issues over the
next 5 to 10 years. First, EPA will continue to work with states to implement the Data Reliability
Action Plan (DRAP), a multi-step approach to improve the quality and reliability of data in SDWIS.
Second, more states will be using SDWIS-STATE, a software information system jointly designed
by states and EPA. Third, EPA is modifying SDWIS-FED to streamline and minimize data entry.
And finally, EPA, in partnership with the states,  is developing  information modules on other
drinking water programs, e.g., source water protection, underground injection  control, and the
Drinking Water State Revolving Fund.

Permit Compliance System (PCS)

       OMB reported in its September 17,1999, letter to EPA's Chief Financial Officer (CFO) that
because of missing data and data quality problems, PCS is not a reliable source of information for
the management and oversight of the Clean Water Act NPDES program. EPA and state permitting
and enforcement programs all rely on this system.  EPA uses the information in PCS for NPDES
program management and oversight purposes, including assisting in targeting enforcement activity
to the areas experiencing compliance and enforcement problems, hi F Y1999 OMB identified PCS
as a management challenge, while EPA declared it as an internal Agency weakness and implemented
a corrective action strategy.

       EPA has been aware of problems with PCS and, over the past few years, has worked with
the states to identify problems and define the systems revisions needed for effective NPDES program
management and oversight. In conjunction with the states, EPA has three major initiatives underway
that will be continued in FY 2002 and are intended to improve the usefulness of the system as a
management tool. These initiatives include PCS modernization, an interim data exchange format,
and electronic reporting.  EPA is monitoring progress carefully and will gauge success by the level
of state participation, improvements in the quality and comprehensiveness of the data, and reliability
of the analyses generated. Completion of corrective actions is expected by FY 2003.
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EPA Relationships with States

       GAO's January 1999 Report,  "Major Management Challenges and Program Risks:
Environmental Protection Agency," and its January 2001 update identified EPA-state relationships
as a major management challenge.  OIG also identified EPA's relationships with states as a
management challenge in FY 2000.  GAO's and OIG's concerns centered around fundamental
disagreements between EPA and the states over their respective roles, priorities among state
environmental programs, and the appropriate degree of federal oversight.

       Under the National Environmental Performance Partnership System (NEPPS), the Agency
committed to long-term collaboration with state agencies to improve EPA/state management of
national environmental programs. A national EPA/state workshop inpY 2000 reviewed evaluations
and developed the following recommendations for strengthening NEPPS: (1) recommit to the
fundamental principles of NEPPS; (2) coordinate and integrate systems/programs; and (3) improve
performance measures. Actions taken in response to these recommendations include (1) reaffirming
EPA's commitment to NEPPS; (2) designating "NEPPS Leaders" at the senior management, mid-
management, and staff levels; (3) producing a crosswalk of GPRA annual performance measures and
NEPPS core performance measures; (4) completing an internal training survey to help strengthen
the skills of NEPPS practitioners; and (5) implementing a workplan that commits to developing
better tools for NEPPS practitioners. Both GAO and OIG believe that the positive steps the Agency
has taken and the increased emphasis placed on this issue have improved cooperation with the states
and will result in more effective and efficient environmental protection.

Reinventing Environmental Regulation

       In its January  1999 report, Major  Management Challenges and Program Risks:
Environmental Protection Agency, GAO reported that EPA's current regulatory system is costly and
occasionally inflexible and that the Agency faces challenges in making changes to the current
system. These challenges include helping employees understand and support changes and reaching
consensus among stakeholders on objectives and approaches for addressing important reinvention
issues and policies.

       Efforts are underway to achieve better environmental results with less burden through the
use of innovative and flexible approaches. Actions taken to date include the following:

       •    Implementing a reorganization that unites the Agency's policy and reinvention staff into
           one organization in order to strengthen and increase EPA's ability to achieve appropriate
           changes within Agency regulatory and non-regulatory processes.

       •    Finalizing over  50  XL  (excellence  and  Leadership) projects and  moving to
           implementation phase of the Metal Finisher's sectors project, all designed to  explore
           ways to achieve better results with less burden.
                                         SA-9

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       •    Directing personnel and extramural resources to help build Agency capacity for
           evaluating innovative and core programs.

       •    Incorporating lessons from the pilots under Project XL and the EPA/Environmental
           Council Of States (ECOS) innovations agreement into Agency core programs, such as
           plantwide applicability limits tested under XL being incorporated into Agency decisions
           on air permitting reform.

       •    Establishing the Performance Track Program and awarding grants to states to support
           recognition of high performance companies.

Resource Conservation and Recovery Act fRCRA) Corrective Action Program

       EPA and other stakeholders, including GAO, have identified several factors impeding timely
and cost-effective cleanups under RCRA.  To address the problem, GAO recommended that EPA
devise a strategy for ensuring that cleanup managers in EPA's regions and states have a consistent
understanding of new approaches outlined in guidance or regulation and that EPA oversee program
implementation to determine whether cleanup managers are using the new approaches appropriately.

       EPA has already undertaken a number of regulatory, guidance, and oversight initiatives
consistent with GAO's suggestions. For example, to meet more effectively the challenging 2005
GPRA goals and speed up the pace of cleanups in general, EPA introduced a first round of RCRA
Cleanup Reforms in July 1999 and a second round of reforms in January 2001. The 1999 reforms
have successfully moved the program toward faster, focused, and more flexible cleanups, resulting
in an increase from 47 to 504 facilities that have already achieved the 2005 goals. The 2001 reforms
reflect the ideas heard from program implementors and stakeholders and introduce new initiatives
designed to reinforce and build upon the 1999 reforms. Specifically, the 2001 reforms are designed
to pilot innovative approaches, accelerate changes in culture, connect communities to cleanups, and
capitalize on redevelopment potential. Completion of corrective actions associated with the 1999
reforms is expected by FY 2001. Completion of corrective action associated with the 2001 reforms
is expected in FY 2001-2002.

Accountability

       OIG identified accountability as a management challenge for the Agency in FY 1999-2000,
stating that EPA needs to take further action to develop accountability systems that tie performance
to EPA's organizational goals.  OIG believes that greater accountability can be achieved through
clearly defined goals, performance measures, and areas of responsibility; better tracking of how
employees spend their time while in the workplace; and greater commitment by responsible officials
to achieving national goals.

       EPA has made significant progress over the  past few years in strengthening results-based
management,  including development of a goal-based budget and planning and accountability

                                        SA-10

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functions to support it In FY 2000 EPA issued its revised Strategic Plan for FY 2000-2005 that
includes lessons learned about performance measurement and Agency priorities for protecting
human health and the  environment, some improved performance measures to reflect better
programmatic and environmental outcomes, and strengthened cost accounting to try to better link
Agency budgetary resources with the achievement of environmental results.

Agency Process for Preparing Financial Statements

       OIG identified EPA's process for preparing financial statements as a management challenge
in F Y1999-2000. The preparation of the Agency's F Y 1998 financial statements was substantially
more challenging than  in prior years due to changes in FASEB requirements and additional
statements that were required, resulting in the Agency missing the statutory submission date. OIG
believed the Agency needed to improve its financial statement preparation process to enable the
Agency to submit audited financial statements by March 1 of each year.  The Agency declared this
issue as an internal Agency weakness in FY 1999; completion of corrective actions is expected in
FY2001.

       As a result of numerous improvements to its financial statement preparation process in FY
2000 and early FY 2001, EPA's FY 2000 financial statements were issued on time and received an
unqualified audit  opinion.  Additional improvement efforts are ongoing and are  expected to
culminate with the implementation of an automated tool for use in preparing the Agency's F Y 2001
financial statements. The issuance of timely financial statements with clean audit opinions continues
to be a top priority of the Agency.

Managerial Cost Accounting

       EPA's OIG believes that the Agency needs to improve  its cost accounting systems and
processes to provide Agency managers with timely and reliable information on the cost of carrying
out EPA's programs and administrative activities.  In the Agency's FY 1999 financial statement
audit, OIG reported that EPA did not comply with  the  Managerial Cost Accounting Standard
requirements  to: (1) determine the full cost of its activities; (2) accumulate and report the cost of
activities on a regular basis for management information and other stakeholder purposes; and (3) use
appropriate costing methodologies to accumulate  and assign costs to outputs.  OIG identified
managerial accounting as a major management challenge in FY 2000.

       The Agency believes it  substantially  complies with the Managerial  Cost  Accounting
Standards and is working closely with OIG to resolve the few differences that remain. EPA has
established a cost accounting approach that supports two different types of needs. This includes cost
accounting under the Agency GPRA goal structure and costing program-specific outputs, e.g., site-
specific costs, interagency agreements, working capital fund, user fees, etc. Procedures for assigning
and reporting  direct and indirect costs for both categories vary depending on the specific purpose and
management need for cost uiformation.
                                        SA-11

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       Since FY 1999, all new obligational authority has been budgeted and accounted for in the
Agency's GPRA 10-goal structure using a Program Results Code (PRC).  The PRC provides the
structure whereby all the costs related to the activities in a particular goal and objective, regardless
of national program manager or program office, are accumulated to show the cost of the Agency's
outputs. EPA also has an established process for allocating some indirect costs to the appropriate
PRC. Obligations made before FY 1999 are accounted for in the Agency's previous structure, i.e.,
program element. Cost information in both accounting structures is available for use by managers
to review how resources are spent to achieve expected results and to help them make future
budgeting decisions.

       EPA has taken a number of actions and will continue to refine its cost accounting, both for
the GPRA accounting and other more specific localized needs for cost accounting.  These actions
include:

       •     Beginning in FY 1999, the Agency established the PRC (described above) to link
             resources in the Annual Plan and Budget with the GPRA goal structure.

       •     Issued policy and guidance ,and providing training on budget restructuring and cost
             accounting.

       •     Issued Superfund  indirect cost  rates that comply with the  Managerial Cost
             Accounting Standards.

       •     Issued the F Y 2000 Statement of Net Costs by goal in the Agency's Annual Financial
             Statements.

The Agency's OCFO currently is working on the following specific areas of cost accounting:

       •     Developing reports on outputs that combine both the former program element and
             new PRC structure.

       •     Working with individual program offices to  address specific accounting needs.
             Examples include:

             •      Enforcement activities across media lines
                    RCRA oversight
             •      Combined Sewer Overflow in the Water Program

       •     Developing indirect cost rates for the Mobile Sources Program's Compliance Fees
             and  for Human Health  Assessment  fees to  allow the Office  of Research and
             Development to make their Human Studies Facility in Chapel Hill, NC, available to
             scientists throughout the world for the conduct of environmental  health research.
                                        SA-12

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       In summary, cost accounting is a process that will continue to change because improvements
and enhancements, like those listed above, are ongoing.

Improved Management of Assistance Agreements

       Several years ago OIG audits found that project officers and grants specialists did not
thoroughly review grant applications, perform site visits, or perform other reviews to ensure the
Agency received quality and timely products and services. The Agency declared grants closeout and
management of assistance agreements a material weakness in FY 1996 and implemented a detailed
corrective action strategy. The Agency substantially completed its corrective actions, strengthened
the overall management of  EPA's  assistance program, and redesignated grants closeout and
oversight of assistance agreements as an internal Agency weakness in FY  1999.  OIG identified
assistance agreements as a management challenge again in F Y 2000 based on indications from recent
audits that EPA needs to validate the effectiveness of its strategy for ensuring effective management
of its assistance agreements.

       The Agency completed corrective actions associated with the grants closeout portion of the
weakness in FY 2000, reporting that  all but 26 grants of the estimated backlog of 19,000 reported
to Congress in July 1996 were closed. Twenty-four of the remaining 26 grants will be closed out
as the Agency resolves an outstanding indirect cost rate issue.  The remaining two grants will be
closed out as the Agency completes the audit resolution process. To manage grant closeouts more
efficiently, EPA has established interim closeout goals for each year and each Grants Management
Office submitted its FY 2000 grants closeout strategy as required. In addition, the Agency developed
and implemented policies to ensure effective post-award management of EPA assistance agreements.

        During  FY  2001  EPA is  assessing  whether the  Agency  administratively and
programniatically manages its assistance agreements appropriately.  Actions currently underway
include (1) examining quarterly reports and information from the Grantee Compliance Assistance
Database; (2) conducting evaluations of Management Effectiveness Reviews, post-award plans, and
the Grantee Compliance Assistance Initiative; and (3) consulting with Senior Resource Officials in
conducting the assessments and OIG in validating corrective actions. The validation study will be
completed by the end of FY  2001.
                                         SA-13

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Key Program Summary
 (Dollars in thousands)
Key Program
Acid Rain -CASTNet
Acid Rain -Program Implementation
Administrative Law
Administrative Services
Administrative Services
Administrative Services
Administrative Services
Administrative Services
Air Toxics Research
Air,State,Local and Tribal Assistance
Grants: Other Air Grants
Assessments
Assistance Agreement Audits
Assistance Agreement Audits
Assistance Agreement A udits
Assistance Agreement Investigations
Assistance Agreement Investigations
Assistance Agreement Investigations
ATSDR Superfund Support
BEACH Grants
Brownfields
Brownfields
Brownfields
Carbon Monoxide
Carbon Monoxide
Carbon Monoxide
Center for Environmental Statistics (CEIS)
Chesapeake Bay
Children's Indoor Environments
Civil Enforcement
Approp.
S&T
EPM
EPM
EPM
LUST
Oil Spill
Superftmd
Total
S&T
STAG
Superfund
IG
Superfund
Total
IG
Superfund
Total
Superfund
STAG
EPM
Superfund
Total
EPM
S&T
Total
EPM
EPM
EPM
EPM
1999
Enacted
$4,000.0
$10,309.4
$2,324.3
$10,471.9
$35.4
$0.0
$5,859.2
$16,366.5
$19,507.0
$214,759.8
• $87,712.3
$3,428.7
$3,401.8
$6,830.5
$2,650.4
$0.0
$2,650.4
$76,000.0
$0.0
$1,269.9
$91,333.3
$92,603.2
$3,270.5
$113.2
$3,383.7
$3,965.8
$20,361.5
$3,746.8
$82,397.6
2000
Enacted
$4,000.0
$10,606.3
$2,471.3
$94,886.4
$406.3
$3.4
$28,858.7
$124,154.8
$18,121.7
$217,916.8
$83,857.7
$3,947.5
$3,401.8
$7,349.3
$2,762.8
$0.0
$2,762.8
$70,000.0
$0.0
$1,196.3
$91,018.8
$92,215.1
$3,937.6
$129.9
$4,067.5
$0.0
$20,308.9
$15,161.7
$81,799^7
2001
Enacted
$3,991.2
$12,248.7
$2,566.3
$106,125.6
$334.0
$0.0
$30,709.2
$137,168.8
$22,238.7
$227,724.5
$82,701.5
$2,984.9
$2,367.2
55,352.7
$2,765.0
$0.0
$2,765.0
$0.0
$0.0
$2,636.6
$89,972.0
$92,608.6
$3,879.8
$182.5
$4,062.3
$0.0
$20,728.1
$14,714.1
$94,752.3
2002
Request
$3,991.2
$12,581.3
$2,828.3
$108,322.9
$350.1
$2.2
$32,564.6
$141,239.8
$18,924.4
$227,724.5
$77,651.3
$1,500.0
$500.0
$2,000.0
$1,885.0
$1,015.0
$2,900.0
$0.0
$2,000.0
$2,674.2
$94,977.4
$97,651.6
$3,940.7
$188.1
$4,128.8
$0.0
$18,818.7
$13,624.1
$92,071.9
       SA-14

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Key Program Summary
 (Dollars in thousands)
Key Program
Civil Enforcement
Civil Enforcement
Civil Enforcement
Civil Enforcement
Civil Enforcement CWA - CWAP/AFOs
Civil Rights/Title VI Compliance
Clean Water Exposure Research
Climate Change Research
Climate Protection Program:
Transportation
Climate Protection Program:
Transportation
Climate Protection Program:
Transportation
Climate Protection Program: Buildings
Climate Protection Program: Carbon
Removal
Climate Protection Program: Industry
Climate Protection Program: International
Capacity Building
Climate Protection Program: RESEARCH
Climate Protection Program: State and
Local Climate Change Program
Coastal Environmental Monitoring
Commission for Environmental
Cooperation - CEC
Common Sense Initiative
Common Sense Initiative
Common Sense Initiative
Community Right to Know (Title III)
Compliance Assistance and Centers
Compliance Assistance and Centers
Compliance Assistance and Centers
Approp.
S&T
Oil Spill
Superfund
Total
EPM
EPM
S&T
S&T
EPM
S&T
Total
EPM
EPM
EPM
EPM
S&T
EPM
S&T
EPM
EPM
S&T
Total
EPM
EPM
Oil Spill
Superfund
1999
Enacted
$589.9
$1,225.3
$736.6
$84,949.4
$0.0
$1,637.1
$1,406.0
$15,970.6
$4,799.5
$26,950.5
$31,750.0
$38,800.0
$0.0
$22,086.1
$4,322.9
$10,000.0
$2,500.0
$0.0
$3,084.0
$9,018.4
$867,0
$9,885.4
$4,544.7
$18,920.1
$274.9
$101.3
2000
Enacted
$299.6
$1,298.5
$251.6
$83,649.4
$935.6
$1,430.9
$7,087.5
$20,5922
$2,604.8
$27,000.0
$29,604.8
$42,640.9
$1,000.0
$21,991.7
$5,594.4
$0.0
$2,508.0
$6,954.0
$3,222.5
$5,035.9
$630.4
$5,666.3
$4,797.5
$22,954,8
$353.4
$109.0
2001
Enacted
$2,979.4
$1,264.7
$4,085.3
$103,081.7
$977.3
$9,140.1
$7,089.3
$22,550.4
$2,494.5
$26,940.6 .
$29,435.1
$52,535.0
$997.8
$31,929.6
$5,501.7
$0.0
$2,494.5
$7,467.5
$3,269.0
$2,166.3
$0.0
$2,166.3
$5,207.8
$25,097.8
$267.9
$0.0
2002
Request
$2,946.9
$1,363.8
$4,210.8
$100,593.4
$0.0
$11,898.3
$7,264.4
$21,951.7
$5,500.0
$26,940.8
$32,440.8
$52,730.9
$1,700.0
$27,295.2
$6,315.1
$0.0
$2,500.0
$7,607.6
$3,403.6
$1,921.6
$0.0
$1,921.6
$5,136.8
$26,560.0
$266.3
$0.0
       SA-15

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Key Program Summary
 (Dollars in thousands)
Key Program
Compliance Assistance and Centers
Compliance Incentives
Compliance Incentives
Compliance Incentives
Compliance Monitoring
Compliance Monitoring
Compliance Monitoring
Compliance Monitoring
Congressional/Legislative Analysis
Congressional/Legislative Analysis
Congressional/Legislative Analysis
Congressional Projects
Contract and Procurement Investigations
Contract and Procurement Investigations
Contract and Procurement Investigations
Contract Audits
Contract Audits
Contract Audits
Contracts Management
Contracts Management
Contracts Management
Contracts Management
Criminal Enforcement
Criminal Enforcement
Criminal Enforcement
Criminal Enforcement
Data Collection
Data Standards
Data Standards
Data Standards
Approp.
Total
EPM
Superfund
Total
EPM
S&T
Superfund
Total
EPM
Superfund
Total
EPM
IG
Superfund
Total
IG
Superfund
Total
EPM
LUST
Superfund
Total
EPM
S&T
Superfund
Total
EPM
EPM
S&T
Superfund
1999
Enacted
$19,296.3
$5,129.1
$213.6
$5,342.7
$49,095.2
$4,568.4
$3,798.4
$57,462.0
$4,878.4
$243.1
$5,121.5
$0.0
$1,844.1
$1,068.9
$2,913.0
$4,245.1
$705.5
$4,950.6
$16,232.7
$69.6
$8,683.7
$24,986.0
$24,319.8
$3,327.7
$6,789.0
$34,436.5
$0.0
$0.0
$0.0
$0.0
2000
Enacted
$23,417.2
$4,975.1
$220.6
$5,195.7
$48,500.0
$4,516.2
$3,388.0
$56,404.2
$3,992.2
SI 72.0
$4,164.2
$1,968.5
$1,936.2
$1,068.9
$3,005.1
$4,731.0
$708.5
$5,439.5
$0.0
$0.0
$0.0
$0.0
$23,699.9
$4,436.3
$8,992.6
$37,128.8
$955.3
$4,333.0
$3,070.7
$0.0
2001
Enacted
$25,365.7
$10,093.3
$340.2
$10,433.5
$54,166.5
$2,614.7
$0.0
$56,781.2
$4,350.5
$0.0
$4,350.5
$1,917.1
$2,010-1
$969.6
$2,979.7
$4,431.2
$915.0
$5,346.2
$0.0
$0.0
$0.0
$0.0
$25,669.0
$5,095.8
$10,075.3
$40,840.1
$2,096.6
$3,364.6
$3,032.9
$647.8
2002
Request
$26,826.3
$9,883.0
$292.8
$10,175.8
$47,425.5
$2,701.5
$0.0
$50,127.0
$4,787.6
$0.0
$4,787.6
$2,029.4
$2,325.0
$775.0
$3,100.0
$3,900.0
$1,300.0
$5,200.0
$0.0
$0.0
$0.0
$0.0
$26,743.4
$5,266.3
$9,857.3
$41,867.0
$1,571.6
$3,081.3
$3,404.1
$336.5
       SA-16

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                                    Key Program Summary
                                    (Dollars in thousands)
Key Program
Data Standards
Design for the Environment
Direct Public Information and Assistance
Direct Public Information and Assistance
Direct Public Information and Assistance
Drinking Water Consumer Awareness
Drinking Water Implementation
Drinking Water Regulations
Drinking Water Regulations
Drinking Water Regulations
Effluent Guidelines
EMPACT
EMPACT
EMPACT
Employee Integrity Investigations
Employee Integrity Investigations
Employee Integrity Investigations
Endocrine Disrupter Research
Endocrine Disrupter Screening Program
Enforcement Training
Enforcement Training
Enforcement Training
Environment and Trade
Environmental Appeals Boards
Environmental Appeals Boards
Environmental Appeals Boards
Environmental Education Division
Environmental Finance Center Grants
Approp.
Total
EPM
EPM
Superfund
Total
EPM
EPM
EPM
S&T
Total
EPM
EPM
S&T
Total
IG
Superfund
Total
S&T
EPM
EPM
Superfund
Total
EPM
EPM
Superfund
Total
EPM
EPM
1999
Enacted
$0.0
$4,724.9
$3,929.2
$562.8
$4,492.0
$1,622.9
$28,134.2
$31,807.8
$2,118.9
$33,926.7
$22,372.2
$7,889.2
$6,313.7
$14,202.9
$953.4
$0.0
$953.4
$12,098.4
$4,258.0
$3,142.9
$661.1
$3,804.0
$389.0
$1,570.9
$89.4
$1,660.3
$7,398.3
$1,065.0
2000
Enacted
57,403.7
$4,741.9
$3,720.9
$475.1
$4,196.0
$1,537.2
$29,668.5
$30,772.4
$2,458.1
$33,230.5
$21,116.9
$6,777.8
$2,260.8
$9,038.6
$991.8
$0.0
$991.8
$8,038.0
$12,553.8
$4,750.0
$955.4
$5,705.4
$518.0
$1,789.5
$91.3
$1,880.8
$5,970.3
$1,250.0
2001
Enacted
$7,045.3
$4,976-8
$4,331.2
$0.0
$4,331.2
$1,462.6
$32,149.1
$31,725.9
$2,595.5
$34,321.4
$21,782.4
$7,782.8
$5,986.8
SI 3,769.6
$921.2
$0.0
$921.2
$12,849.4
$10,083.6
$4,236.7
$1,041.0
$5,277.7
$1,614.7
$1,548.8
$0.0
$1,548.8
$9,578.1
$1,249.0
2002
Request
$6,821.9
$4,979.0
$11,097.8
$0.0
$11,097.8
$2,463.2
$35,200.6
$27,726.5
$2,672.1
$30,398.6
$21,492.3
$0.0
$0.0
$0.0
$750.0
$250.0
$1,000.0
$11,321.4
$8,952.5
$3,580.6
$732.0
$4,312.6
$1,672.5
$1,711.6
$0.0
$1,711.6
$8,518.3
$1,249.0
(EFC)

Environmental Monitoring and
Assessment Program, EMAP
S&T
•$33,153.5    $30,543.5"    $29,613-7    $33,133.7
                                           SA-17

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Key Program Summary
 (Dollars in thousands)
Key Program
Environmental Technology Verification
(ETV)
Existing Chemical Data, Screening,
Testing and Management
Exploratory Grants Program
Facility Operations: Agency Rental/ Direct
Lease
Facility Operations: Agency Rental/ Direct
Lease
Facility Operations: Agency Rental/ Direct
Lease
Facility Operations: Agency Rental/ Direct
Lease
Facility Operations: Agency Rental/ Direct
Lease
Facility Operations: Agency Rental/
Direct Lease
Facility Operations: Agency Utilities
Facility Operations: Agency Utilities
Facility Operations: Agency Utilities
Facility Operations: Repairs and
Improvements
Facility Operations: Security
Facility Operations: Security
Facility Operations: Security
Federal Facilities
Federal Preparedness
Financial Statement Audits
Financial Statement Audits
Financial Statement Audits
Geospatial
Global Toxics
GLOBE
Approp.
S&T
EPM
S&T
EPM
LUST
Oil Spill
IG
Superfund
Total
EPM
Superfund
Total
B&F
EPM
Superfund
Total
Superfund
Superfund
IG
Superfund
Total
EPM
EPM
EPM
1999
Enacted
$6,908.5
$14,225.3
$12,038.0
$133,357.0
$723.3
$5-11.7
$3,236.6
$32,743.2
$170,571.8
$9,985.7
$29.5
$10,015.2
$15,428.0
$12,219.7
$742.5
$12,962.2
$29,368.2
$11,307.5
$3,300.6
$886.9
$4,187.5
$0.0
$315.3
$0.0
2000
Enacted
$6,392.6
$20,394.5
$10,803.5
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$27,750.6
$11,028.2
$3,447.4
$886.9
$4,334.3
$630.2
$535.0
$1,000.0
2001
Enacted
$6,294.0
$24,429.6
$10,368.5
$0.0
$0.0
$0.0
$0.0
$0.0
SO. 0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$30,624.6
$12,859.3
$3,423.4
$823.9
$4,247.3
$522.3
$0.0
$997.8
2002
Request
$3,619.6
$25,423.4
$10,290.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$30,795.2
$12,963.4
$3,000.0
$1,000.0
$4,000.0
$512.3
$0.0
$0.0
       SA-18

-------
Key Program Summary
 (Dollars in thousands)
Key Program
Grants Management
Grants Management
Grants Management
Grants Management
Grants to States for Lead Risk Reduction
Grants to States for Lead Risk Reduction
Great Lakes
Great Lakes National Program Office
Gulf of Mexico
Harmful Algal Blooms (HABs) and
Related Research
Hazardous Air Pollutants
Hazardous Air Pollutants
Hazardous Air Pollutants
Hazardous Substance Research Centers
Hazardous Substance Research Centers
Hazardous Substance Research Centers
Hazardous Substance Research:Superfund
Innovative Technology Evaluation (SITE)
Hazardous Substance Research:Superfund
Innovative Technology Evaluation (SITE)
Hazardous Waste Research
Human Health Research
Human Resources Management
Human Resources Management
Human Resources Management
Human Resources Management
Human Resources Management
Immediate Office of the Administrator
Indoor Air Research
Approp.
EPM
LUST
Superfund
Total
STAG
STAG
Carryover
EPM
EPM
EPM
S&T
EPM
S&T
Total
S&T
Superfund
Total
S&T
Superfund
S&T
S&T
EPM
S&T
LUST
Superfund
Total
EPM
S&T
1999
Enacted
$7,331.5
$211.3
$1,026.0
$8,568.8
$13,712.2
$0.0
$5,395.3
$14,783,8
$3,798.9
$2,234.5
$43,469.9
$1,786.1
$45,256.0
$4,529.8
$0.0
$4,529.8
$7,695.9
$0.0
$6,167.9
$49,652.2
$19,486.1
$326.0
$36.3
$2,083.6
$21,932.0
$2,791.3
$2,818.7
2000
Enacted
$0.0
$0.0
$0.0
$0.0
$0.0
$13,712.2
$3,263.7
$15,077.6
$4,196.0
$3,634.1
$38,751.1
$4,054.2
$42,805.3
$2,504.7
$0.0
$2,504.7
$7,017.3
$0.0
$5,379.8
$48,883.9
$0.0
$0.0
$0.0
$0.0
$0.0
$2,505.6
$0.0
2001
Enacted
$0.0
$0.0
$0.0
$0.0
$12,472.4
$0.0
$3,114.4
$15,207.5
$4,341.2
$5,436.9
$48,161.8
$3,882.4
$52,044.2
$2,282.6
$2,245.1
$4,527,7
$6,554.0
$0.0
$6,990.0
$50,940.4
$0.0
$0.0
$0,0
$0.0
$0.0
$3,300.0
$0.0
2002
Request
$0.0
$0.0
$0.0
50.0
$13,682.0
$0.0
$3,027.0
$14,962.4
$4,276.7
$5,441.6
$46,899.7
$3,886.8
$50,786.5
$0.0
$4,606.0
$4,606.0
$0.0
$6,636.9
$8,994.1
$50,807.2
$0.0
$0.0
$0.0
$0.0
$0.0
$4,294.2
$0.0
       SA-19

-------
Key Program Summary
 (Dollars in thousands)
Key Program
Indoor Environments
Indoor Environments
Indoor Environments
Information Exchange Network
Information Integration
Information Technology Management
Information Technology Management
Information Technology Management
Information Technology Management
Information Technology Management
Innovative Community Partnership
Program
International Safe Drinking Water
Lake Champlain
Lead
Lead Risk Reduction Program
Long Island Sound
LUST (LUST)Cooperative Agreements
Marine Pollution
Multilateral Fund
NACEPT Support
NAFTA Implementation
National Association Liaison
National Estuaries Program/Coastal
Watersheds
National Nonpoint Source Program
Implementation
National Program chemicals: PCBs,
Asbestos, Fibers,and Dioxin
NEPA Implementation
New Chemical Review
Approp.
EPM
S&T
Total
STAG
EPM
EPM
EPM Y2K
S&T
Superfund
Total
EPM
EPM
EPM
EPM
EPM
EPM
LUST
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
1999
Enacted
$5,684.2
$811.8
$6,496.0
$0.0
$0.0
$22,135.7
SO.O
$0.0
$4,074.2
$26,209.9
$4,725.0
$684.0
$2,000.0
$326.3
$18,214.4
$900.0
$58,990.0
$7,420.4
$11,362.0
$2,490.0
$537.0
$224.6
$16,528.3
$16,033.7
$3,268.3
$9,269.5
$14,659.5
2000
Enacted
$7,183.9
$1,253.7
$8,437.6
$0.0
$890.0
$24,940.9
$977.8
$0.0
$553.5
$26,472.2
$0.0
$793.0
$2,187.3
$357.7
$13,833.9
$975.0
$56,466.8
$7,580.0
$12,000.0
$1,655.7
$674.6
$254.9
$18,029.2
$15,401.1
$5,753.6
$9,901.4
$13,261.4
2001
Enacted
$7,146.9
$322.5
$7,469.4
$0.0
$5,860.2
$25,297.8
$0.0
$0.0
$3,250.4
$28,548.2
$0.0
$384.4
$1,995.6
$329.5
$14,248.6
$4,989.0
$58,341.3
$7,797.9
$10,975.8
$1,556.2
$402.2
$235.2
$18,192.5
$16,170.7
$6,115.1
$11,081.4
$14,147.4
2002
Request
$7,246.9
$329.4
$7,576.3
$25,000.0
$5,900.0
$22,283.5
$0.0
$137.5
$2,854.4
$25,275.4
$0.0
$301.8
$954.8
$339.9
$14,519.4
$477.4
$58,269.3
$7,820.2
$10,975.8
$1,654.6
$427.6
$258.7
$17,053.2
$16,342.4
$6,388.9
$11,670.9
$14,622.7
       SA-20

-------
Key Program Summary
 (Dollars in thousands)
Key Program
New Construction: New Headquaters
Project
New Construction; New Headquaters
Project
New Construction: New Headquaters
Project
New Construction: New Headquaters
Project
New Construction :RTP New Building
Project
NIEHS Superfund Support
Nitrogen Oxides
NPDES Program
Oil Spills Preparedness, Prevention and
Response
Other Federal Agency Superfund Support
Ozone
Ozone
Ozone
Pacific Northwest
Particulate Matter
Particulate Matter
Particulate Matter
Particulate Matter Research
Partnership with Industrial and Other
Countries
Performance Track
Pesticide Applicator Certification and
Training
Pesticide Registration
Pesticide Registration
Pesticide Registration
Pesticide Reregistration
Approp.
EPM
B&F
Superfund
Total
B&F
Superfund
EPM
EPM
Oil Spill
Superfund
EPM
S&T
Total
EPM
EPM
S&T
Total
S&T
EPM
EPM
EPM
EPM
S&T
Total
EPM
1999
Enacted
$7,255.4
$5,520.0
$2,058.0
$14.83.3.4
$36,000.0
$60,000.0
$956.9
$30,862.6
$11,851.9
$10,000.0
$37,459.9
$31,832.6
$69,292.5
$1,022.5
$25,754.1
$39,815.7
$65,569.8
$55,842.9
$6,267.8
$0.0
$10,438.0
$30,886.0
$2,612.4
$33,498.4
$35,243.2
2000
Enacted
$0.0
$0.0
$0.0
$0.0
$0.0
$60,000.0
$2,407.1
$36,274.9
$11,820.4
$10,000.0
$29,708.0
$28,971.8
$58,679.8
$1,0432
$26,489.2
$27,629.5
$54,118.7
$62,300.5
$6,855.6
$0.0
$9,391.2
$34,323.6
$2,168.3
$36,491.9,
$31,472.5
2001
Enacted
$0.0
$0.0
$0,0
$0.0
$0.0
$0.0
$1,379.4
$39,405.2
$11,948.9
$10,676.5
$32,322.5
$35,659.1
$67.981.6
$1,078.6
$32,466.9
$23,150.4
$55,617.3
$68,765.0
$0.0
$1,995.6
$10,022,5
$38,974.8
$2,240.9
$41,215,7
$33,968.9
2002
Request
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$1,323.1
$40,249.6
$11,943.5
$10,676.5
$33,391.8
$36,223.3
$69,615.1
$1,103.8
$31,160.3
$23,532.7
$54,693.0
$65,743.3
$0.0
$1,843.6
$10,349.1
$38,998.1
$2,263.2
$41,261.3
$43,940.8
       SA-21

-------
Key Program Summary
 (Dollars in thousands)
Key Program
Pesticide Reregistration
Pesticide Reregistration
Pesticide Residue Tolerance
Reassessments
Pesticide Residue Tolerance
Reassessments
Pesticide Residue Tolerance
Reassessments
Pesticides Program Implementation Grant
Pfiesteria
Planning, Analysis, and Results - IG
Planning, Analysis, and Results - IG
Planning, Analysis, and Results - IG
Planning and Resource Management
Planning and Resource Management
Planning and Resource Management
Planning and Resource Management
Pollution Prevention Incentive Grants to
States
Pollution Prevention Program
Pollution Prevention Tools and
Technologies
Program Audits
Program Audits
Program Audits
Program Evaluation - IG
Program Evaluation - IG
Program Evaluation - IG
Program Integrity Investigations
Program Integrity Investigations
Program Integrity Investigations
Project XL
Approp.,
S&T
Total
EPM
S&T
Total
STAG
EPM
IG
Superfund
Total
EPM
LUST
Superfund
Total
STAG
EPM
S&T
IG
Superfund
Total
IG
Superfund
Total
IG
Superfund
Total
EPM
1999
Enacted
$2,856.6
$38,099.8
$9,970.3
$127.8
$10,098.1
$13,114.6
$2,500.0
$0.0
$0-0
$0.0
$31,675.4
$661.6
$19,560.1
$51,897.1
$5,999.5
$9,449.5
$30,509.5
$7,283.3
$2,981.1
$10,264.4
$0.0
$0.0
$0.0
$439.8
$471.7
$911.5
$7,911.0
2000
Enacted
$2,379,5
$33,852.0
$11,446.4
$151.4
$11,597.8
$13,114.6
$100.0
$0.0
$0.0
$0.0
$31,012.2
$820.4
$12,247.3
$44,079.9
$5,999.5
$8,333.2
$27,442.0
$8,044.5
$2,981.1
$11,025.6
$1,389.4
$246.9
$1,636.3
$1,000.0
$471.7
$1,471.7
$6,428.8
2001
Enacted
$2,287.3
$36,256.2
$14,647.8
$153.8
$14,801.6
$13,085.5
$99.8
$1,299.3
$312.9
$1,612.2
$34,630.0
$907.0
$12,056.5
$47,593.5
$5,986.3
$8,608.9
$24,386.7
$8,872.1
$3,891.3
$12,763.4
$2,597.1
$244.9
$2,842.0
$1,103.9
$379.2
$1,483.1
$3,286.8
2002
Request
$2,403.5
$46,344.3
$5,846.0
$0.0
$5,846.0
$13,085.5
$95.5
$1,200.0
$400.0
$1,600.0
$34,213.7
$942.6
$12,116.9
$47,273.2
$5,986.3
$8,871.5
$21,890.0
$3,675.0
$1,225.0
$4,900.0
$11,250.0
$3,750.0
$15,000.0
$1,125.0
$375.0
$1,500.0
$3,234.8
       SA-22

-------
Key Program Summary
 (Dollars in thousands)
Key Program
Public Access
Public Access
Public Access
Public Access
Public Access
Radon
Radon
Radon
RCRA Corrective Action
RCRA Permitting
RCRA State Grants
Recycling
Regional and Global Environmental
Policy Development
Regional Geographic Program
Regional Haze
Regional Management
Regional Management
Regional Management
Regional Management
Regional Management
Regional Operations and Liaison
Regional Program Infrastructure
Regional Program Infrastructure
Regional Program Infrastructure
Regional Program Infrastructure
Regional Program Infrastructure
Regional Program Infrastructure
Regional Science and Technology
Approp.
EPM
EPM-
Reim
S&T
Superfund
Total
EPM
S&T
Total
EPM
EPM
STAG
EPM
EPM
EPM
EPM
EPM
LUST
Oil Spill
Superfund
Total
EPM
EPM
LUST
Oil Spill
IG
Superfund
Total
EPM
1999
Enacted
$0.0
$0.0
$0.0
$0.0
$0.0
$4,253.2
$982.2
$5,235.4
$31,059.9
$13,325.0
$98,598.2
$4,232.9
$0.0
$8,358.3
$12,254.9
$0.0
$0.0
$0.0
$0.0
$0.0
$408.5
$38,923.4
$396.3
$148.4
$582.5
$20,083.0
$60,133.6
$3,599.1
2000
Enacted
$27,930.0
$269.0
$1,899.9
$138.8
$30,237.7
$3,793.9
$438.2
$4,232.1
$36,610.5
$15,724.4
$98,598.2
$3,639.3
$0.0
$8,352.7
$1,851.5
$23,077.5
$0-0
$0.0
$9,849.0
$32,926.5
$467.3
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$2,823.2
2001
Enacted
$12,223.1
$0.0
$2,573.5
$1,085.0
$15,881.6
$4,945.7
$1,617.0
$6,562.7
$40,622.3
$14,309.0
$106,363.6
$3,351.1
$2,188.4
$8,192.3
$2,305.9
$33,575.1
$0.0
$0.0
$11,964.5
$45,539.6
$427.6
$20,626.0
$144.4
$26.2
$0.0
$7,873.8
$28,670.4
$3,850.3
2002
Request
$17,798.7
$0.0
$419.0
$1,533.5
$19,751.2
$5,095.7
$1,637.3
$6,733.0
$41,183.2
$16,889.0
$106,363.6
$3,712.7
$2,279.4
$7,421.3
$2,352.1
$53,581.2
$103.9
$23.8
$19,094.9
$72,803.8
$470.6
$4,604.6
$0.0
$0.0
$0.0
$1,427.5
$6,032.1
$3,594.1
       SA-23

-------
                                  Key Program Summary
                                   (Dollars in thousands)
Key Program
Regional Science and Technology
Regional Science and Technology
Reinventing Environmental Information
(REI)
Reinvention Programs, Development and
Coordination
Rent, Utilities and Security
Rent, Utilities and Security
Rent, Utilities and Security
Rent, Utilities and Security
Rent, Utilities and Security
Risk Management Plans
Rural Water Technical Assistance
Safe Drinking Water Research
SBREFA
Science Advisory Board
Small Business Ombudsman
Small, Minority, Women-Owned Business
Assistance
Source Reduction
Source Water Protection
South Florida/Everglades
STAR Fellowships Program
State Multimedia Enforcement Grants
State Nonpoint Source Grants
State Pesticides Enforcement Grants
State Pollution Control Grants (Section
106)
State PWSS Grants
State Toxics Enforcement Grants
State Underground Injection Control
Approp.
Superfund
Total
EPM
EPM
EPM
LUST
Oil Spill
Superrund
Total
EPM
EPM
S&T
EPM
EPM
EPM
EPM
EPM
EPM
EPM
S&T
STAG
STAG
STAG
STAG
STAG
STAG
STAG
1999
Enacted
$3,097.9
$6,697.0
$15,054.9
$16,308.4
$0.0
SO.O
$0.0
$0.0
$0.0
$7,254.9
$13,050.0
$45,734.6
$760.3
$2,486.7
$1,110.3
$2,064.4
$2,299.0
$10,741.3
$2,869.3
$8,941.0
$0.0
$200,000.0
$19,511.7
$115,529.3
$93,780.5
$7,364.2
$10,500.0
2000
Enacted
$4,512.7
$7,335.9
$0.0
$16,795.2
$176,659.7
S845.6
$508.3
$40,562.7
$218,576.3
$7,242.8
$13,987.4
$47,367.6
$777.3
$2,861.7
$1,120.3
$2,188.8
$1,950.9
$10,302.3
$2,923.0
$8,952.6
$0.0
$200,000.0
$19,911.6
$115,529.3
$93,305.5
$7,364.2
$10,975.0
2001
Enacted
$4,362.9
$8,213.2
$0.0
$18,546.3
$189,927.2
$717.0
$507.2
$43,995.2
$235,146.6
$8,041.8
$15,154.6
$51,501.6
$570.6
$2,763.3
$3,000.9
$2,040.8
$1,883.3
$10,689.8
$2,942.0
$9,704.3
$0.0
$237,476.8
$19,867.8
$171,883.3
$93,100.2
$7,348.2
$10,950.9
2002
Request
$0.0
$3,594.1
$0.0
$19,896.4
$202,218.7
$717.0
$454.1
$47,175.2
$250,565.0
$7,643.9
$656.9
$46,994.7
$603.6
$3,012.8
$3,106.6
$2,152.8
$2,052.7
$10,337.2
$2,855.0
$9,708.4
$25,000.0
$237,476.8
$19,867.8
$169,883.3
$93,100.2
$7,348.2
$10,950.9
Grants
                                         SA-24

-------
Key Program Summary
 (Dollars in thousands)
Key Program
State Water Quality Cooperative
Agreements
State Wetlands Program Grants
Sulfur Dioxide
Superfund - Cost Recovery
Superfund - Justice Support
Superfund - Maximize PRP Involvement
(including reforms)
Superfund Remedial Actions
Superfund Removal Actions
System Modernization
System Modernization
System Modernization
Technical Cooperation with Industrial and
Developing Countries
Toxic Release Inventory / Right-to-Know
(RtK)
Tribal General Assistance Grants
Tropospheric Ozone Research
U.S. - Mexico Border
UIC Program
Underground Storage Tanks (UST)
UST State Grants
Waste Combustion
Waste Minimization
Water Infrastructure: Alaska Native
Villages
Water InfrastructurerBoston Harbor
Water Infrastructure:Bristol County
Water Infrastructure:Clean Water State
Revolving Fund (CW-SRF)
Water Infrastructure:Drinking Water State
Approp.
STAG
STAG
EPM
Superfund
Superfund
Superfund
Superfund
Superfund
EPM
Superfund
Total
EPM
EPM
STAG
S&T
EPM
EPM
EPM
STAG
EPM
EPM
STAG
STAG
STAG
STAG
STAG
1999
Enacted
$19,000.0
$15,000.0
$9,993.1
$30,580.6
$29,000.0
$88,857.0
$585,181.4
$199,216.8
$0.0
$0.0
$0.0
$0.0
$19,799.6
$42,585.4
$18,100.4
$4,929.4
$9,412.2
$6,378.3
$10,544.7
$6,890.3
$2,413.2
$30,000.0
$50,000.0
$2,610.0
$1,350,000.
0
$775,000.0
2000
Enacted
$19,000.0
$15,000.0
$9,863,7
$30,269.1
$28,663.5
$82,009.6
$499,799.0
$200,860.3
$5,979.5
$761.0
$6,740.5
$0.0
$8,913.7
$42,628.4
$6,273.7
$4,142.3
$9,594.9
$6,203,9
$11,944.7
$4,438.3
$1,913.3
$30,000.0
$0.0
$2,000.0
$1,345,421.
3
$820,000.0
2001
Enacted
$18,958.2
$14,967.0
$12,158.1
$29,495.5
$28,437.3
$81,473.8
$492,045.7
$198,638.1
$12,183.9
$1,290.3
$13,474.2
$4,162.2
$14,060.9
$52,469.7
$6,551.0
$4,213.7
$10,836.9
$7,043.4
$11,918.4
$4,302.2
$1,979.9
$34,923.0
$0.0
$1,935.7
$1,347,030.
0
$823,185.0
2002
Request
$18,958.2
$14,967.0
$12,495.2
$28,121.1
$28,150.0
$78,355.7
$492,408.2
$202,618.8
. $12,210.0
$1,480.0
$13,690.0
$4,125.9
$13,547.8
$52,469.7
$6,786.0
$4,236.5
$11,199.2
$7,190.2
$11,918.4
$5,423.1
$2,120.0
$34,923.0
$0.0
$0.0
$850,000.0
$823,185.0
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                                    Key Program Summary
                                     (Dollars in thousands)
Key Program
Approp.
  1999
Enacted
 2000
Enacted
 2001
Enacted
 2002
Request
Revolving Fund (DW-SRF)
Water Infrastructure: Mexico Border      STAG
Water Infrastructure: New Orleans        STAG
Water Infrastructure: Sewer Overflow     STAG
Control Grants
Water Quality Criteria and Standards      EPM
Water Quality Monitoring and Assessment EPM
Watershed Research                    S&T
Wetlands                             EPM
             $50,000.0    $50,000,0    $74,835.0    $74,835.0
              $6,525.0     $3,800.0         $0.0         $0.0
                  $0.0         $0.0         $0.0   $450,000.0
             $19,110.9
             $11,446.8
             $10,297.5
             $15,694.9
             $18,545.1
              $9,762.6
              $7,481.8
             $15,730.0
             $18,380.6
             $11,166.9
              $7,872.1
             $16,959.8
             $18,787.5
             $11,309.2
              $5,852.9
             $17,291.2
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                           NON-APPROPRIATED FUNDS

Overview

      Non-appropriated funds are monies which pay for discreet Agency activities supported by
fees.  These funds  are available to the Agency  and do not require  an appropriation.  The
Environmental Protection Agency (EPA) has one active account for such non-appropriated funds,
as well as an inactive account. These are 1) the Reregistration and Expedited Processing Revolving
Fund and 2) the Revolving Fund for Certification and Other Services (now inactive).

      The 1988 amendments to FIFRA required the Agency to review and reregister all pesticides
that were registered before November 1984. To supplement appropriated funding for the Pesticide
Registration Program, two types of fees were established on the pesticide industry, Federal, state and
local governments: (1) a Reregistration Fee and (2) an annual Maintenance Fee.  Fee receipts are
deposited into the Reregistration and Expedited Processing Revolving Fund and made available to
EPA without annual  appropriation. For this reason, EPA does not request dollars from this fund,
commonly called the "FIFRA Fund", in the annual President's Budget.  The Reregistration Fee
expired in 1992, but Maintenance Fees will continue until September 30,2001. From 1999 to 2000,
$ 16,000,000 in annual Maintenance Fees were collected and in 2001, $ 14,000,000 will be collected.
The Maintenance Fee expires at the end of FY 2001 and no fees will be collected hi 2002. EPA will
continue to fund the Pesticide Reregistration Program through its annual appropriations.

      The Federal Food, Drug and Cosmetic Act (FFDCA) of 1963 requires EPA  to establish
tolerance levels and  exemptions for pesticide residues on raw agricultural commodities.  Under
section 408 of FFDCA, the Agency is authorized to collect fees to recover the costs of processing
petitions for these pesticide tolerances.  The fees  are paid by companies/registrants requesting
establishment of a permanent or temporary pesticide tolerance at the tune of the request and work
is not begun until verification of the fees receipt is made. Fee receipts, until 1997, were deposited
into the Revolving Fund for Certification and Other Services, commonly called the "Tolerance
Fund" which are available to EPA without an annual appropriation.

      With enactment of the Food Quality Protection Act of 1996, fee receipts are now deposited
into the  Reregistration  and Expedited  Processing Revolving Fund. FQPA also requires the
reassessment of all pesticide tolerances established before FQPA enactment. This new task is to be
supported in the aggregate by a restructured tolerance fee to be established through a rulemaking,
which will cover both tolerance petitions and tolerance reassessments. Appropriations language has
prohibited the Agency from  finalizing the rule in FY 2000 and FY 2001.   In 2002, the Agency
expects to issue the final rule with an effective date no later than March 31, 2002, and to collect
$51,000,000 that year. EPA expects  to use $14,000,000 of those funds to support the tolerance
reassessment and assessment programs for the second half of FY 2002. The first half of the year,
the programs  will be supported through appropriated funds.
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Program and Activity Highlights

Reregistration and Expedited Processing Revolving Fund

       Beginning in 1997, this non-appropriated revolving  fund included $2,000,000 in new
tolerance fees collected under the Food Quality Protection Act of 1996, plus the collection of the
annual Pesticide Maintenance Fees. Pesticide Maintenance fees expire at the end of FY 2001, and
in FY 2002,  annual Maintenance fee collections will be $0.  In 2002, EPA will promulgate the
needed rules to  increase tolerance fees to ensure that the tolerance setting process will be as self-
supporting as possible.

       The Agency's emphasis on tolerance reassessments will continue in 2002 and is reflected in
the appropriated budget request to complete an additional 26%, for a cumulative 66%, of the 9,721
tolerances that must be reassessed.  In addition, the Agency continues to establish tolerances for
pesticide residues in or on food for feed crops in the United States under The Food Quality
Protection Act of 1996.

Revolving Fund for Certification and Other Services

       The Food Quality Protection Act of 1996 requires new tolerance fees be deposited into the
Registration  and Expedited Processing Revolving (FIFRA) Fund.  The Revolving Fund for
Certification and Other Services has been closed out.
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                             EPA USER FEE PROGRAM

       In FY 2002, EPA will have four (4) user fee programs in operation. These user fee programs
are as follows:

*      Motor Vehicle and Engine Compliance Program Fee

       This fee is authorized by the Clean Air Act of 1990 and is managed by the Office of Air and
       Radiation.  Fee collections began in August 1992. This fee is imposed on manufacturers of
       light-duty vehicles, light and heavy trucks, and motorcycles. It covers the cost of certifying
       new engines and vehicles and monitoring compliance of in-use engines and vehicles. In F Y
       2002, EPA expects to collect $11.0 million from this fee.

•      Pesticide Tolerance Fee

       The Agency expects to issue a final tolerance fee rule on October 1,2001 with an effective
       date of March 31, 2002.  EPA anticipates collecting $51,000,000 in fees in FY 2002.  A
       tolerance is the maximum legal limit of a pesticide residue in and on food commodities and
       animal feed.  In 1954, the Federal Food, Drug, and Cosmetic Act (FFDCA) authorized the
       collection of fees for the establishment of tolerances on raw agricultural commodities and
       in food commodities. These fees supplement annual appropriated funds for EPA's Tolerance
       Program and are also deposited into the FIFRA Fund. Annually the fees are adjusted by the
       percentage change in the Federal employee General Schedule (GS) pay scale. In 2002, the
       Agency expects to replace this  fee with a more comprehensive cost-recovery fee.  The
       FFDCA, as amended by FQPA, mandates that EPA must require the payment of such fees
       as will, in the aggregate, be sufficient to provide, equip, and maintain an adequate service for
       establishing tolerances. A proposed Tolerance Fee Rule was published in 1999.

*      Pre-manufacturing Notification Fee

       Since 1989, this fee has been collected for the review and processing of new chemical Pre-
       Manufaeturing Notifications (PMN) submitted to EPA by the chemical industry. They are
       paid  at the time of submission  of the PMN for  review by EPA's  Office of Prevention,
       Pesticides and Toxic Substances. PMN fees are authorized by the Toxic Substances Control
       Act and  contain a cap on the amount the Agency may charge for  a PMN  review.  EPA
       expects to  collect $3,000,000  in PMN fees in 2002 under the existing fee structure.  The
       removal  of the statutory fee cap is discussed below.

•      Lead Accreditation and  Certification Fee

       The Toxic Substances Control Act, Title IV, Section 402(a)(3), mandates the development
       of a schedule of fees for persons operating lead training programs accredited under the
       402/404  rule and for lead-based paint contractors certified under this rule. The training
       programs ensure that lead paint abatement is done safely. Fees collected for this activity are

                                        SA-29

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       deposited in the U.S. Treasury. EPA estimates that less than $500,000 will be deposited in
       2002 and subsequent years.

User Fee Proposals

•      Pesticide Registration Fee

       The Agency will resume collecting the pesticide registration fee on October 1, 2001 and
       deposit the resources in the general fund. EPA will publish a notice in the Federal Register
       notifying registrants that these fees will resume and updating the fee rates to reflect the
       increase in the General Schedule pay rates since the rule was suspended. The Agency expects
       to collect $25,000,000 in 2002 from the reinstatement of Pesticide Registration Fees that
       Congress had suspended through 2001. Through such fees, manufacturers of new pesticide
       products share the cost of ensuring that authorized uses of these products do not pose
       unreasonable risk to human health and the environment.

•      Removal of the Pre-manufacturing Notification Fee

       The Agency is proposing authorizing and appropriations language to remove the statutory
       cap on the existing Pre-Manufacturing Notification (PMN) fees to allow the Agency to cover
       the full cost of the PMN program.  The authorizing language would remove the current
       statutory cap in the Toxic Substances Control Act on the total  fee that EPA is allowed to
       charge. The fee change would be subject to an appropriations language trigger that would
       allow the fees to be counted as discretionary. Under the current fee structure, the Agency
       will collect $3,000,000 in FY 2002. The increase in PMN fees  will be deposited into a
       special fund in the U.S. Treasury, available to the Agency, subject to appropriation. In FY
       2002  after the anticipated rulemaking, the Agency  estimates collections of an additional
       $4,000,000, an amount which will increase to $8,000,000 in the following years, once fee
       collection is fully implemented.
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                            WORKING CAPITAL FUND

       In FY 2002, the Agency begins its fifth year of operation of the Working Capital Fund
(WCF). A WCF is a revolving fund authorized by law to finance a cycle of operations, where the
costs of goods and services provided are charged to the users on a fee-for-service basis. The funds
received are available without fiscal year limitation, to continue operations and to replace capital
equipment. EPA's WCF was implemented under the authority of Section 403 of the Government
Management Reform  Act of 1994 and EPA's FY 1997 Appropriations Act. Permanent WCF
authority was contained in the FY  1998 Appropriations Act.

       The Chief Financial Officer and the Office of the Comptroller initiated the WCF in F Y1997
as part of their effort  to: (1) be accountable to Agency offices, the Office of Management and
Budget, and the Congress; (2) increase the efficiency of the administrative services provided to
program offices; and (3) increase customer service and responsiveness. The Agency has a WCF
Board which provides policy and planning oversight and  advises the CFO regarding the WCF
financial position.  The Board, chaired by the Deputy CFO, is composed of sixteen permanent
members from the program offices and the regional offices.

       Two Agency services, begun in F Y1997 will continue into FY 2002. These are the Agency's
computer center and telecommunications operations, managed by the National Technology Services
Division (NTSD),  Research Triangle Park, North Carolina and Agency postage costs, managed by
the Office of Administration, Washington, DC.  The Agency's FY 2002 budget request includes
resources for these two activities in  each National Program  Manager's submission,  totaling
approximately $134 million. These estimated resources may be increased to incorporate program
office's additional service needs during the operating year. To the extent that these increases are
subject to Congressional reprogramming notifications, the Agency will comply with all applicable
requirements.
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                      THE CUSTOMER SERVICE PROGRAM

Background

       EPA's Customer Service  Program (CSP)  was established in  1993,  immediately  after
President Clinton signed Executive Order 12862, "Setting Customer  Service Standards." The
Customer Service staff is located in the Office of  Policy, Economics and Innovation within the
Office of the Administrator. CSP staff coordinate and support all aspects of the Program.. Directly
or through contracts staff support EPA's Customer Service Steering Committee (CSSC), the group
that sets CSP policy, its 11 work and process groups, and customer service coordinators across the
Agency; coordinate an annual conference in partnership with a regional host and/or federal partner;
develop and disseminate training and measurement support tools and techniques; and gather and
share best practices and success stories to speed adoption of customer service improvements. By
involving approximately 400 individuals from staff and management through CSSC work groups
and office/region/laboratory Customer Service Councils, the CSP leverages its two person staff to,
implement the Agency's Customer Service Strategy,

       EPA considers the American people to be our number one customer. As we enforce laws and
administer  our  many non-regulatory programs,  we must  be  responsive to  their  legitimate
expectations. Being prompt and predictable, knowledgeable and responsive to customers' needs,
flexible where appropriate, and unfailingly considerate and courteous enables EPA to work as better
partners and to produce better environmental results. Customer service does not take the place of
intelligent program strategies; rather, it must be an integral part of every strategy.

What Improved Customer Service Will Achieve

       During October 2000, the CSP received 22 office and regional plans for building world class
customer service across the Agency. CSP staff will track progress and provide assistance to program
offices and regions to fully implement their plans over the next several years. The main elements
of the plans follow.

       I.     Vision/Leadership - Establish a clear vision of how providing outstanding customer
             service fits into the Agency's mission and a method to communicate this picture of
             the future throughout the organization.

       II.     Feedback/Measurement - Formally  assess and document the satisfaction of key
             external and/or internal customers, make appropriate changes as a result, and develop
             objective measures to track progress.

       III.    Sharing/Benchmarking - Investigate, discover and implement practices from the best
             public and private sector service leaders.
                                        SA-32

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       IV.    Accountability/Recognition.  - Hold everyone responsible for providing  service
             excellence and recognize outstanding efforts.

       V.    Personal Development - Provide opportunities for as "many people as possible to
             attend at least one customer service workshop.

       Implementing the plans will enable the Agency to better achieve EPA's Six Principles of
Customer Service and enhance implementation of the Agency's overall Customer Service Strategy.
The Six Principles are -

1.     Be helpful!  Listen to your customers!
2.     Respond to all phone calls by the end of the next business day.
3,     Respond to all correspondence within 10 business days.
4.     Make clear, timely, accurate information accessible.
5.     Work collaboratively with partners to improve all products and services.
6,     Seek and use customers' ideas and input!
       The Customer Service Program Strategy adopted by the CSSC in the fall of 1998 focuses
on:
•      helping all  EPA employees understand the importance and substantial mission related
       benefits of improving service to the public and each other;
•      providing employees with goals (standards) and guidelines for improvement and involving
       them in identifying and attempting to eliminate barriers to  achieving customer service
       excellence;
       providing training to build staff capacity to achieve the standards and effectively apply
       customer service skills, and building a culture that encourages learning;
•      developing tools and building capacity to gather formal and informal feedback and measure
       customer satisfaction (service, product and process improvement) over time;
•      learning what we need to do to increase satisfaction with our services and our treatment of
       customers; and,
•      recognizing and rewarding customer service excellence.

       Because customer feedback and satisfaction measurement are critical underpinnings to the
overall program, in 1998 the CSP developed "Hearing  the Voice of the  Customer - Customer
Feedback and Customer Satisfaction Measurement Guidelines."  CSP sponsors workshops to train
advisor/consultants to assist people across the Agency to use the Guidelines to obtain and use
customer input. All feedback instruments will continue to be cleared through the OMB under the
CSP generic Information Collection Request  (ICR) for customer satisfaction surveys which is
approved through March 2003.  The CSP also encourages organizations to establish systems to
document complaints and comments, track responses, and make improvements.
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       The CSP also coordinated EPA's participation in the 1999 and 2000 Government-wide
America Customer Satisfaction Index Survey and has performed follow-up surveys to clarify the
findings. To examine the customer service aspects of the information provision part of its mission,
EPA chose to focus on Internet users because web pages are representative of all EPA programs,
Internet is becoming increasingly more accessible to the general public (in 1999,50 % of the public;
five years prior only 30%), and increasing public access to environmental information is a strategic
goal of the Agency. EPA's customer segment, as a surrogate for the American people, is reference
librarians in public libraries across the nation. The Agency continually makes changes to improve
its websites.

       Over 200 EPA staff are certified to facilitate training across the Agency. Many are involved
in delivering Forging the Links (an EPA-specific workshop that ties service improvement to better
mission performance) as well as customer skills courses.  Through  sharing benchmarking/best
practices information and by convening the only  government sponsored annual customer service
conference, the CSP supplements training opportunities. The annual conferences bring outstanding
speakers, best in class service deliverers, EPA, federal and state employees and managers together
to share information and speed adoption of best practices.

       Through recognizing outstanding service, the Agency highlights, encourages, and reinforces
service excellence. Many offices and regions in EPA have created specific cash awards for customer
service.  In  addition, many non-monetary awards  are  in place to encourage improvements in
correspondence and telephone service to the public.  An Honor Award for customer service began
to be given in 2001.

Expected Results

       In support of the Customer Service Executive Order and various Presidential memorandums,
in FY 2002, the Agency will maintain leadership and coordination of the National C SP. The services
and expected results follow.

•      policy and guidance provision will better link customer service excellence with achieving
       EPA's mission;
•      communication and liaison with Senior managers and other federal and state partners will
       assure consistent and rapid follow-up;
*      best practices research and benchmarking assistance will lead to continued improvements in
       processes, products and services;
*      direct CSP staff assistance and contractual support to work groups, program and regional
       offices will speed implementation of the 2000 customer service plans;
•      customer service and related training opportunities will  increase the customer focus  of the
       Agency;
•      continuous support for feedback and measurement activities will prevent duplicati ve surveys
       and speed survey clearances;
*      a fifth National  Customer Service Conference will enable EPA and its partners to  meet,
       share, and learn from top performing agencies and companies how to apply their knowledge
       to improve customer service;


                                         SA-34

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       increased access to CSP information via the Into and Internet and a gateway to other
       customer service information will enable more people to understand the benefits of world
       class customer service; and
       service excellence will become a core value at EPA.
FTE: 3.1     Funding: $ 150,000 (request)
                                        SA-35

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            COST AND BENEFITS OF ECONOMICALLY SIGNIFICANT
                           RULES IN FY 2001 OR FY 2002

Goal 2: Clean and Safe Water

National Primary DrinMngjyater Regulations: The Ground Water Rule

       The 1996 amendments to the Safe Drinking Water Act require EPA to develop regulations
that require disinfection of ground water systems "as necessary" to protect the public health
(§1412(b)(8)). EPA proposed the Ground Water Rule (GWR) on May 10, 2000. The Proposed
GWR specifies conditions when corrective action (including disinfection) is necessary to protect
consumers who receive water from ground water systems from microbial pathogens. Although
ground water has historically been considered to be free of microbial contamination, recent research
indicates that  some ground water resources are a source of waterborne disease. Most cases of
waterborne disease are characterized by gastrointestinal symptoms that rarely require  medical
treatment in healthy individuals. However, these same symptoms are much more serious and can
be fatal for persons in sensitive subpopulations (such as, children, the elderly, and persons with
compromised immune systems).  The total estimated annual cost of the proposed GWR is $183
million annually.  The total estimated benefits of the proposed GWR are based upon avoiding
115,000 illnesses and 15 deaths annually and have a monetized value of $205 million. EPA plans
to promulgate the GWR in November 2001.

National Primary Drinking Water Regulation: Long Term  2 Enhanced Surface Water Treatment
CLT2ESWD Rule and Stage 2 Disinfectants and Disinfection Byproducts CDBP) Rule

       The LT2ESWT rule is being developed in conjunction with the Stage 2 DBP rule.  The
Agency's work on these two rules will include an expanded focus on risk analysis to determine what
are the most significant risks and the acceptable balance among competing risks. For instance, while
disinfectants are effective in reducing microbial risk,  they react with natural organic matter in the
water to form DBPs.  Several of the DBPs have been shown to cause adverse health effects in
laboratory  animals.   The optimal  balance  will  adequately  control risks  from pathogens,
simultaneously control DBPs to acceptable levels, and ensure that costs of water treatment are
commensurate with public health benefits. The cost-benefit analyses for these two rules are still
under development at this time; however, preliminary estimates show that the cost of each of these
rules may exceed the $ 100 million benchmark for economic significance. Each will be a major rule.
Proposal of these rules is expected in November 2001.

National Primary Drinking Water Regulations: Radon

       Pursuant to the Safe Drinking Water Act (SD WA), as amended in 1996, EPA is required to
publish a Maximum Contaminant Level Goal (MCLG) and Final National Primary Drinking Water
Regulation (NPDWR) for radon.

       The unique framework for the  regulations, outlined in the 1996 SDWA Amendments,
recognizes that the public health problem from radon in indoor air typically far exceeds the health

                                       SA-36

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risks from radon in drinking water and that targeting indoor radon exposures is the most cost-
effective way for states to reduce radon health risks. The proposed new regulation will provide two
options to states and water systems for reducing public health risks from radon.  Under the first
option, states can choose to implement a multimedia mitigation (MMM) program to address the
health risks from indoor radon while water systems reduce radon levels in drinking water to the
higher, alternative maximum contaminant level (AMCL) of 4,000 pCi/1 (picoCuries per liter, a
standard unit of radiation) or lower, ensuring protection from the highest risks from radon in
drinking water. EPA is encouraging the states to adopt this approach as the most cost-effective way
to achieve the greatest radon reduction. If a state does not elect this option, the second option would
require water systems in that state to either reduce radon in drinking water levels to the MCL (300
pCi/1) or develop a local indoor radon program and reduce levels in drinking water to 4,000 pCi/1.

       The total annual costs of compliance with the proposal MCL of 300 pCi/1 for radon in
drinking water are estimated at $407 million in 1997 dollars. In complying with 300 pCi/1, an
estimated 62.0 fatal and 3.6 non-fatal cancer cases are avoided each year. Because EPA anticipates
that most states and systems will choose to comply with the AMCL of 4,000 pCi/1 and implement
a MMM program, EPA expects the total annual costs of compliance with the radon rule to be
significantly less than $407 million. If most states and systems comply with the AMCL and
implement a MMM program, the total annual cost of compliance is an estimated $80 million. The
quantifiable benefits of the health risk reduction are estimated as $362 million annually for either
scenario. EPA  expects compliance with the AMCL and implementation of a MMM program to
achieve equal or greater risk reduction than is expected with strict compliance with the MCL. EPA
plans to promulgate a final rule in 2001.

NPPES Requirements for Sanitary Sewers and SSOs

       EPA will be proposing to clarify NPDES permit requirements for municipal sanitary sewer
collection systems and  sanitary sewer overflows  (SSOs).   The proposal would apply NPDES
requirements to municipal satellite collection systems. In addition, the proposal would establish
standard permit conditions for municipal sanitary sewer collection systems.  The benefits include
benefits associated with improvements hi water quality and the benefits associated with improved
management, operation, and maintenance.  The benefits associated with water quality include:
reduced human exposure to raw sewage leading to fewer cases of illness; increased opportunities for
recreation, tourism, and fishing; and less property damage due to basement backups. Benefits due
to better management, operation, and maintenance are associated with using improved practices that
will enhance day-to-day performance and extend the life of systems.

Goal 3: Safe Food

Pesticide Tolerance Reassessment Program (Proposed/Final  - involves a series of individual
chemical specific regulatory actions that will be issued over the next several years).

       As required by the Food Quality Protection Act of 1996 (FQPA), EPA is reassessing all of
the pesticide tolerances and tolerance exemptions for raw  and processed foods established prior to
August 3,1996, to determine whether they meet the "reasonable certainty of no harm" standard of

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the Federal Food, Drag and Cosmetic Act (FFDCA), as amended by the FQPA. FFDCA section
408(q) requires that EPA conduct this reassessment on a phased 10-year schedule. Based on its
reassessments, EPA will take a series of individual chemical specific regulatory actions to modify
or revoke those tolerance actions that do not meet the reasonable certainty of no harm standard.

       Any analysis of potential cost impacts will be conducted as part of the individual regulatory
action, but few, if any, of the individual actions are expected to be considered economically
significant under section 3(f) of Executive Order 12866 because of the provision allowing for sale
of existing stocks under FQPA. The FFDCA allows EPA to consider benefits only in a very limited
manner in determining whether to retain or modify a pesticide tolerance. Actions taken as a result
of the tolerance reassessment program will ensure that dietary exposures to pesticides will be safe,
taking into account aggregate exposure  from food, water  and non-occupational sources, and
considering the cumulative effects of substances have a common mode of toxicity.

Endocrine Disruptor Screening and Testing Program (Proposed Action, June 2002).

       The FQPA requires EPA to screen pesticides for estrogenic effects on human health, and the
Safe Drinking Water Act (SDWA) authorizes EPA to screen chemicals found in drinking water
sources in a similar manner. EPA anticipates issuing a final policy statement that would set forth
EPA's Endocrine Disruptor Screening Program and the procedures to be followed by regulated
entities and the Agency. In October 1996, EPA established the Endocrine Disruptor Screening and
Testing Advisory  Committee (EDSTAC) to provide advice  and  counsel  to  the  Agency in
implementing the screening and testing program. Comprised of 43 members representing industry,
government, environmental and public health groups,  labor  academia,  and other interested
stakeholders, the EDSTAC held its final meeting in June 1998. The Committee considered human
health and ecological effects; estrogenic, androgenic, anti-estrogenic, ani-androgenic and thyroid
effects in its deliberations and extended its scope to include industrial chemicals, drinking water
contaminants and important mixtures as well as pesticides. After considering the EDSTAC's final
report, EPA published a proposed policy statement setting forth the Screening Program on December
28,1998 (63 FR 71542).  In the final policy statement, EPA will describe the screens and tests that
it will require as part of the Program.  It also will address certain issues related to implementing the
Program. The major actions in 2001 -2003 will be the standardization and validation of assay s in the
screening battery and the completion of the priority setting system.

       It is too early to project the costs and benefits of this program accurately. However, as a
rough estimate, the screening battery is estimated to cost $200,000 per chemical. It is too early to
determine how many chemicals will be screened in Tier 1 much less tested in Tier 2 (there are
potentially 87,000 chemicals that could go through at least Tier 1, though some could be waived due
to their chemical composition). It is also too early to tell the benefits-mat is how many chemicals will
be identified that are endocrine disrupters and  their exposure reduced either by formal risks
management or by voluntary exposure reduction or product substitution.
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Goal 4: Preventing Pollution in Communities Homes and Workplaces

Lead-Based Paint Activities: Training and Certification for Renovation and Remodeling (Proposed
Rule, August 2001).

       Pursuant to TSCA section 402(c)(3), this rule would propose amendments to the regulations
codified at 40 CFR 745 subpart L to apply the regulations to renovation and remodeling activities
in target housing. Under TSCA section 402(c)(2), EPA must use the results of a study conducted
that looked at the extent to which persons engaged in renovation and remodeling activities in target
housing are exposed to lead in the conduct of such activities or disturb lead and create a lead-based
paint hazard. EPA has consulted with interested parties as required to determine which categories
of renovation and remodeling activities require training and certification, and the proposed rule
would also include the required explanation of the basis for any determination that any renovation
and remodeling category does not require certification.

       Although the  analysis it not yet complete, this rule  is expected to be classified as
"economically significant" under section 3(f) of Executive Order  12866. Costs will be estimated in
the draft economic impact analyses that will be prepared for the  proposed rule. In addition, since
benefits depend on private sector implementation of certain lead hazard abatement activities which
are not mandated by any of these rales, benefits will be difficult to quantify. To the extent that they
can be estimated, however, they  will be included in the draft economic impact analyses that will be
prepared for the proposed rule.

Lead-Based Paint Activities: Building and Structures: Amendments to the Training. Accreditation.
and Certification Rule and Model State Plan Rule (Proposed rule, June 2002).

       Pursuant to TSCA section 402, this rule would propose amendments to  the regulations
codified at 40 CFR 745 to ensure that individuals engaged in lead-based paint activities related to
building and structures  that create lead-based paint hazards are properly trained; that training
programs are accredited; and that contractors engaged in such activities are certified. On August 29,
1996 when EPA finalized regulations  for  lead-based paint  activities in target housing and
child-occupied facilities, EPA indicated that it was delaying finalizing regulations for lead-based
paint activities in buildings and structures (61FR 45778). Based on comments received on the 1994
proposed rule, which had included requirements for target housing  and buildings and structures, EPA
determined that it needed time to gain additional information before completing the regulations for
buildings and structures (59 FR  45672).

       This regulation is currently under development and pre-option selection, so estimated costs
and benefits have yet to be determined.  Cost and benefits will be estimated in the draft economic
impact analyses that will be prepared for any resulting proposed  rule.
                                         SA-39

-------
            CHARGING ADMINISTRATIVE/MANAGEMENT COSTS TO
                            ENVIRONMENTAL GOALS

      In response to Government Performance and Results Act and Managerial Cost Accounting
requirements, the Agency has initiated an effort to accurately reflect all costs associated with
implementing environmental goals where there is a reasonably  clear benefit to that goal.
Specifically, beginning in 1999, and increasing in 2000, the Agency has charged management and
administrative costs to environmental goals to more accurately captures the costs of supporting
environmental programs. The Agency believes that this will result in more reliable information for
internal and external reporting.

      In the FY 2001 Annual Plan/Congressional Justification, FY 2000 Enacted and FY 2001
requested levels reflect a realignment of resources from Agency Management to the agency's other
strategic goals where there is a readily identifiable cost that clearly contributes to the achievement
of those goals.

      The costs allocated across the agency's strategic goals include the entire budget for rent,
utilities and security,  and portions  of total agency costs in the following areas: Administrative
Services  (human resource operations, contracts  management, grants  management, financial
management, facility operations and information resources management); management, support and
oversight; and legal services. The total amounts allocated in 2001 and 2002 are:
 Dollars in Thousands                             FY2001             FY2002

 Rent, Utilities and Security                           $235,147            $248,264

 Administrative Services                              $137,169            $141,240

 Legal Services                                       $39,526              $42,114
                                        SA-40

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FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title

Air Resource
Assistance



Air Resource
Assistance









Statutory
Aiiftorfties
Clean Air Act,
§103



Clean Air Act,
§103









Eligible Recipients*

Air pollution control
agencies as defined in
section 302(b) of the CAA


Multi-jurisdictional
organizations (non-profit
organizations whose
boards of directors or
membership is made up of
CAA section 302(b)
agency officers and whose
mission is to support the
continuing environmental
programs of the states);

Eligible Uses

S/L monitoring and data
collection activities in support of
the establishment of a PM2 5
monitoring network and
associated program costs.
Coordinating or facilitating a
multi-jurisdietional approach to
carrying out the traditional
prevention and control programs
required by the CAA;
Supporting training for CAA
section 302(b) air pollution
control agency staff;
Coordinating or facilitating a
rmjlti-jurisdictional approach to
control interstate air pollution
FY2001
Unacted
$42,500,0




$7,982.2










Ft 2002
Request
$42,500.0




$5,000.0










',
;
0&jtefeM%
Goal I,
Obj. 1



Goal 1,
Obj. 1









                 SA-41

-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title

Air Resource
Assistance




















Air Tribal
Assistance








Statutory
Authorities
Clean Air Act,
Sections 103S 105,
106



















Clean Air Act,
Sections 1 03 and
105; Tribal
Cooperative
Agreements (TCA)
FY 2001
Appropriations Act
(P.L. 106-377)


Eligible Recipients*

Air pollution control
agencies as defined in
section 302(b) of the
CAA; Multi-jurisdictional
organizations (non-profit
organizations whose
boards of directors or
membership is made up of
CAA section 302(b)
agency officers and whose
mission is to support the
continuing environmental
programs of the states);
Interstate air quality
control region designated
pursuant to section 107 of
the CAA or of
implementing section
176A, or section 184
NOTE: only the Ozone
Transport Commission is
eligible as of 2/1/99
Tribes; Intertribal
Consortia; State/ Tribal
college or university







Eligible Uses

Carrying out the traditional
prevention and control programs
required by the CAA and
associated program support
costs; Coordinating or
facilitating a multi-jurisdictional
approach to carrying out the
traditional prevention and
control programs required by the
CAA; Supporting training for
CAA section 302(b) air
pollution control agency staff;
Coordinating or facilitating a
multi-jurisdictional approach to
control interstate air pollution







Conducting air quality
assessment activities to
determine a tribe's need to
develop a CAA program;
Carrying out the traditional
prevention and control programs
required by the CAA and
associated program costs;
Supporting training for CAA for
federally recognized tribes
FY200I
Enacted
$158,057.9





















$11,044.5









FY2002:
Request
161,040.1





















$11,044.5









FY2002 *
Goal/ '
Goal 1,
Obj. All




















Goal 1,
Obj, 1

Goal 1,
Obj. 2






-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title
Radon
Water Pollution
Control Agency
Resource
Supplementation
Nonpoint Source
(NFS)
Wetlands Program
Development
Statutory
Authorities
Toxic Substances
Control Act,
Sections 10 and
306; TCAFY 2001
Appropriations Act
(P.L. 106-377)
FWPCA, as
amended, §106;
TCA FY 2001
Appropriations Act
(P.L. 106-377)
FWPCA, as
amended,
§319(h);TCAFY
2001
Appropriations Act
(P.L. 106-377)
FWPCA, as
amended,
§!04(b)(3);TCA
FY 2001
Appropriations Act
(P.L. 106-377)
Eligible Recipients*
State Agencies, Tribes,
Intertribal Consortia
States, Tribes and
Intertribal Consortia, and
Interstate Agencies
States, Tribes, Intertribal
Consortia
States, Local
Governments, Tribes,
Interstate Organizations,
Intertribal Consortia, and
Non-Proflt Organizations
Eligible Uses
Assist in the development and
implementation of programs for
the assessment and mitigation of
radon
Develop and carry out surface
and ground water pollution
control programs, including
NPDES permits, TMDL's, WQ
standards, monitoring, NPS
control and UWA activities.
Implement EPA-approved State
and Tribal nonpoint source
management programs and fund
priority projects as selected by
the State.
To develop new wetland
programs or enhance existing
programs for the protection,
management and restoration of
wetland resources.
FY 2001
Enacted
$8,139.9
$171,883.3
$237,476.8
$14,967.0
FY2002
Revest ~
$8,139.9
$169,883.3
$237,476.8
$14,967,0
FY2002 :
Gotf 7
ObMtlvf ;
Goal 4,
Obj. 4
Goal 2,
Obj. 2
Goal 2,
Obj. 3
Goal 2,
Obj. 2
                  SA-43

-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title
Water Quality
Cooperative
Agreements
Public Water
System Supervision
(PWSS)
Underground
Injection Control
[UIC]
Beaches Grants
Statutory
Authorities
FWPCA, as
amended,
§104(b)(3);TCA
FY2001
Appropriations Act
(P.L. 106-377)
Safe Drinking
Water Act,
§1443(a); TCA FY
2001
Appropriations Act
(P.L. 106-377)
Safe Drinking
Water Act, §
I443(b);TCAFY
2001
Appropriations Act
(P.L. 106-377)
Beaches
Environmental
Assessment and
Coastal Health Act
of 2000; TCA FY
2001
Appropriations Act
(P,L. 106-377)
Eligible Recipients*
States, Local
Governments, Tribes,
Non-Prefit Organizations,
Intertribal Consortia, and
Interstate Organizations
States, Tribes, and
Intertribal Consortia
States, Tribes, Intertribal
Consortia
States, Tribes, Intertribal
Consortia, Local
Governments
Eligible Uses
Creation of unique and
innovative approaches to
pollution control and prevention
requirements associated with wet
weather activities, AFOs,
TMDLs, and source water
protection.
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.
Implement and enforce
regulations that protect
underground sources of drinking
water by controlling Class I-V
underground injection wells.
Develop and implement
programs for monitoring and
notification of conditions for
coastal recreation waters
adjacent to beaches or similar
points of access that are used by
the public.
FY 2001
Enacted
$18,958.2
$93,100.2
$10,950.9
$1,995.6
(part of
Section 106
Grants)
Ft 2002
Resjuest
$18,958.2
$93,100.2
$10,950.9
$2,000.0
FY2902
Goal/ •>
Oi*te$ive;':
Goal 2,
Obj. 2
Goal 2,
Obj.l
Goal 2,
Obj. 1
Goal 2,
Obj. 1
                     '4

-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title


Hazardous Waste
Financial
Assistance







Underground
Storage Tanks
[UST]








Statutory
Authorities

Resource
Conservation
Recovery Act,
§3011;
FY 1999
Appropriations Act
(PL 105-276); TCA
FY 2001
Appropriations Act
(P.L, 106-377)
Resource
Conservation
Recovery Act
Sections 8001 and
2007(f)and
FY 1999
Appropriations Act
(PL 105-276); TCA
FY 2001
Appropriations Act
(P.L. 106-377)
Eligible Recipients*


States, Tribes, Intertribal
Consortia








State, Tribes and
Intertribal Consortia









Eligible Uses


Development & Implementation
of Hazardous Waste Programs








Demonstration Grants,
Surveys and Training;
Develop & implement UST
program







FY2001
Enacted

$106,363.6









$11,918.4










FY 2002
Request

$106,363.6









$11,918.4










FY2002
Ooal/ ;
Objective
Goal 4,
Obj, 5
Goal 5,
Obj.l&2
Goal 9,
Obj. 1




Goal 5,
Obj.2









                  SA-45

-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title

Pesticides Program
Implementation














Lead








Statutory
Authorities
The Federal
Insecticide,
Fungicide, and
Rodenticide Act §
20&23; theFY
1999
Appropriations Act
(PL 105-276); FY
2000
Appropriations Act
(P.L. 106-74); TCA
FY2001
Appropriations Act
(P.L. 106-377)


Toxic Substances
Control Act,
§ 404 (g); TSCA
10; FY2000
Appropriations Act
(P.L. 106-74); TCA
FY 2001
Appropriations Act
(P.L. 106-377)
Eligible Recipients*

States, Tribes and
Intertribal Consortia














States, Tribes, Intertribal
Consortia







Eligible Uses,
'• «_
Assist states and tribes to
develop and implement pesticide
programs, including programs
that protect workers, ground-
water, and endangered species
from pesticide risks , and other
pesticide management programs
designated by the Administrator;
develop and implement
programs for certification and
train ing of pesticide applicators;
develop Integrated Pesticides
Management (IPM) programs;
support pesticides education,
outreach, and sampling efforts
for tribes.
To support and assist states and
tribes to develop and carry out
authorized state lead abatement
certification, training and
accreditation programs; and to
assist tribes in development of
lead programs.


FY2001 .
Enacted
$13,085.5















$13,682.0








FY2Q02: ,
Request"
$13,085.5















$13,682.0








FY2002 /• "
•Goaf/' '* '
Goal 4,
Obj. 1














Goal 4,
Obj. 2








-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title


Toxic Substances
Compliance
Monitoring**



Pesticide
Enforcement






Statutory
Authorities

Toxic Substances
Control Act, §28(a)
and 404 (g); TCA
FY 2001
Appropriations Act
(P.L. 106-37?)
FIFRA
§23(a)(l);FY
2000
Appropriations Act
(P.L. 106-74); TCA
FY2001
Appropriations Act
(P.L. 106-377)
Eligible Recipients*


States, Territories, Tribes,
Intertribal Consortia




States, Territories, Tribes,
Intertribal
Consortia





Eligible Uses


Assist in developing and
implementing toxic substances
enforcement programs for PCBs,
asbestos, and lead-based paint


Assist in implementing
cooperative pesticide
enforcement programs





FY2001
Enacted

$5,138.8





$19,867.9







FY2002
Request

$5,138.8





$19,867.9







FY2002
Goal/
Objective
Goal9,
Obj. 1




Goal 9,
Obj. 1






                 SA-47

-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title
Information
Integration

























Statutory
Authorities
As appropriate,
Clean Air Act, Sec.
103; Clean Water
Act, Sec, 104; Solid
Waste Disposal
Act, Sec. 8001;
FIFRA, Sec 20;
TSCA, Sec. 10 and
28; Marine
Protection,
Research and
Sanctuaries Act,
Sec. 203; Safe
Drinking Water
Act, Sec. 1442;
Indian
Environmental
General Assistance
Program Act of
1992, as amended;
FY 2000
Appropriations Act
(P.L. 106-74);
Pollution
Prevention Act,
Sec. 6605 ; FY 2002
Appropriations Act.
Eligible Recipients*
Final determination still to
be made, but may include
states, tribes, interstate
agencies, tribal
consortium, and other
agencies with related
environmental information
activities.



















Eligible Uses
Assists states and others to
better integrate environmental
information systems, better
enable data-sharing across
programs, and improve access to
information.





















FY 2001
Enacted
N/A


























FY2002
Request
$25,000.0


























FY2002
coif -;?;
ObjAiwJ
Goal?
Obj. 1

























                 SMS

-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title
Pollution
Prevention







Statutory
Authorities
Pollution
Prevention Act of
1990, §6605;
TSCA 10; FY2000
Appropriations Act
(P.L. 1 06-74); TCA
FY 2001
Appropriations Act
(P.L. 106-377)
Eligible Recipients*
States, Tribes, Intertribal
Consortia







Eligible Uses
To assist state and tribal
programs to promote the use of
source reduction techniques by
businesses and to promote other
Pollution Prevention activities at
the state and tribal levels.



FY2601
Enacted
$5,986,3








FY;2002
Request
$5,986.3








FY2002 ,.
Goal/
Objective
Goal 4,
Obj.5







                 SA-49

-------
FY 2002 STAG CATEGORICAL PROGRAM GRANTS
            (Dollars in Thousands)
Grant Title
Enforcement &
Compliance
Assurance**























Statutory
Authorities
As appropriate,
Clean Air Act, Sec,
103; Clean Water
Act, Sec. 104; Solid
Waste Disposal
Act, Sec. 8001;
FIFRA, Sec 20;
TSCA,Sec. 10 and
28; Marine
Protection,
Research and
Sanctuaries Act,
Sec. 203; Safe
Drinking Water
Act, Sec. 1442;
Indian
Environmental
General Assistance
Program Act of
1992, as amended;
FY 2000
Appropriations Act
(P.L. 106-74); TCA
FY 2001
Appropriations Act
(P.L. 106-377)
Eligible Recipients*
State, Territories, Tribes,
Intertribal Consortia,
Multi-jurisdictional
Organizations






















Eligible Uses
* ~.
Assist in developing innovative
sector-based, multi-media, or
single-media approaches to
enforcement and compliance
assurance





















FY 2001
Enacted
$2,209.3

























FY2002
Request
$2,209.3

























FY2002
Goaf/ ,,.
, ofcjtittM."
Goal 9,
Obj.2

























-------
                                          FY 2002 STAG CATEGORICAL PROGRAM GRANTS
                                                         (Dollars in Thousands)
Grant Title
Multi-media
Enforcement State
Grants
Indian General
Assistance Program
Statutory
Authorities
FY 2002
Appropriations Act.
Indian
Environmental
General Assistance
Program Act of
1992, as amended;
TCA FY 2001
Appropriations Act
(P.L. 106-377).
Eligible Recipients*
States, Tribes, and other
entities to be determined.
Tribal Governments and
Intertribal Consortia
Eligible Uses
Media-specific and multi-media
funding to states and tribes for
compliance assurance activities
including compliance assistance
and incentives, inspections, and
enforcement actions.
Plan, develop and establish
Tribal environmental protection
programs.
FY200J
Enacted
N/A
$52,469.7
FY2002
Request
$25,000.0
$52,469.7
FY2002
Goal/
Objective,
Goal 9,
Obj, 1
Goal 4,
Obj 7
* The Recipients listed in this column reflect assumptions in the FY 2002 Budget Request in terms of expected and/or anticipated eligible recipients.
** In prior years these grants were displayed as Toxic Enforcement Grants,  They are both part of the Toxics Enforcement Key Program [ Goal 9, Objectives 1 and
2J.
                                                                SA-51

-------
STATE and TRIBAL ASSISTANCE GRANTS (STAG) Appropriation Account
                        Dollars in Thousands
FY2000 FY2001
Enacted with Enacted with
Recision (0.38%) Recision (0.022%)
STATE/TRIBAL GRANT ASSISTANCE
State/Tribal Grant Total
INFRASTRUCTURE ASSISTANCE
Clean Water State Revolving Fund
Sewer Overflow Grants
Drinking Water State Revolving Fund
Consolidated State Revolving Fund
Mexican Border Projects
Mexican Border
Special Needs Projects
1 . Boston Harbor
2. Bristol County, MA
3. New Orleans, LA
4. Alaskan Native Villages
Needy Cities Projects
Clean Air Partnership Fund
Infrastructure Total
$883.480.8
$1,345,421.3
$0.0
$820.000.0
$2,165,421.3
S50.000.0
$50,000.0
S35.800.0
$0.0
$2,000.0
$3,800.0
$30,000.0
$309,544.0
N/A
$2,560,765.3
$1,005.782.4
$1,347,030.0
$0.0
$823.185.0
$2,170,215.0
$74.835.0
$74,835.0
$36.918.6
$0.0
$1,995.6
$0.0
$34,923.0
$333,005.8
$0.0
$2,614,974.4
FY2002
President's
Budget
$1.055.782.4
$850,000.0
$450,000.0
$823.185.0
$2,123,185.0
$74.835.0
$74,835.0
$34.923.^
$C
$0.0
$0.0
$34,923.0
$0.0
$0.0
$2,232,943.0
               GRAND TOTALS
$3,444,246.1
$3,620,756.8
$3,288,725.4
                                SA-52

-------
                       CATEGORIAL PROGRAM GRANTS (STAG)
                      by National Program Manager and State Grant
                                  Dollars in Thousands
Air & Radiation

    State and Local Assistance
    Tribal Assistance
    Radon
Water
    Great Lakes
    Pollution Control (Section 106)
    Nonpoint Source
    Wetlands Program Development
    Water Quality Cooperative Agrmts
Drinking Water

    Public Water System Supervision (PWSS)
    Underground Injection Control (UIC)
Hazardous Waste

    H.W. Financial Assistance
    Underground Storage Tanks
Pesticides & Toxics

    Pesticides Program Implementation
    Lead
    Toxic Substances Compliance
    Pesticides Enforcement
Multimedia

    Environmental Information
    Enforcement State Grants
    Pollution Prevention
    Enforcement & Compliance Assurance
    Indian General Assistance Program
    TOTALS
FY2001
FY 2000 Enacted with
Enacted Recission (.022%)
$198,690.0
$11,068.8
$8.158.0
$217,916.8
$0.0
$115,529.3
$200,000.0
$15,000.0
$19.000.0
$349,529.3
$93,305.5
$10.975.0
$104,280.5
$98,598.2
$11.944.7
$110,542.9
$13,114.6
$13,712.2
$5,150.0
$18.392.4
$50,369.2
$0.0
$0.0
$5,999.5
$2,214.2
$42.628.4
$50,842.1
$883,480.8
$208,540.1
$11,044.5
$8.139.9
$227,724.5
$0.0
$171,883.3
$237,476.8
$14,967.0
$18.958.2
$443,285.3
$93,100.2
$10.950.9
$104,051.1
$106,363.6
$11.918.4
$118,282.0
$13,085.5
$13,682.0
$5,138.8
$19.867.9
$51,774.2
$0.0
$0.0
$5,986.3
$2,209.3
$52.469.7
$60,665.3
$1,005,782.4
FY 2002
President's
Budget
$208,540.1
$11,044.5
$8.139.9
$227,724.5
$0.0
$169,883.3
$237,476.8
$14,967.0
$18.958.2
$443,285.3
$93,100.2
$10.950.9
$104,051.1
$106,363.6
$11.918.4
$118,282.0
$13,085.5
$13,682.0
$5,138.8
$19.867.9
$51,774.2
$25,000.0
$25,000.0
$5,986.3
$2,209.3
$52.469.7
$110,665.3
$1,055,782.4
                                        SA-53

-------