United States      Office Of          EPA205-R-02-001
            Environmental Protection  Chief Financial Officer      February 2003
            Agency        (2732A)
SEPA    Fiscal Year 2003
  Justification Of ^>propriations
  Estimates For The Committees
         On Appropriations
  Recycled/Recyclable o Printed with Vegetable Based Inks on Recycled Paper (20% Postconsumer)

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Environmental Protection Agency
2003 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	,	i-8

Resource Tables
        Resources by Appropriation.*	,	»	 RT-1
        Resources by Goal/Appropriation	;.....	,	RT-2
        Resources by Goal/Objective 	,	,	,	RT-7
        Appropriations Overview	,	RT-13

Goal 1: Clean Air	,	.,	,	'.......'.	1-1
        Attain NAAQS 	.'.	.,..,*	„	1-13
        Reduce Risk from Air Toxics.....	,	1-50
        Acid Rain	I	,..,,	1-63

Goal 2: Clean and Safe Water	,	II-l
        Ensure Safe Drinking Water and Recreational Waters	0-12
        Protect Watersheds and Aquatic Communities	11-39
        Reduce Loadings and Air Deposition	,	11-62

Goal 3: Safe Food	,	>	III-l
        Reduce Risks from Pesticide Residues in Food	111-11
        Eliminate Use on Food of PesticidesiNot Meeting Standards	,	111-20

Goal 4: Preventing Pollution and Reducing Risk in Communities, Homes,
        Workplaces and Ecosystems	.'...	.-.......!	,	IV-1
        Reduce Public and Ecosystem Risk from Pesticides	*	 IV-15
        Reduce Risks from Lead and Other Toxic Chemicals	IV-25
        Manage New Chemical Introduction and Screen Existing Chemicals for Risk...	IV-33
        Ensure Healthier Indoor Air	.-	~	,	;..'....:	IV-50
        Facilitate Prevention, Reduction and Recycling of PBTs and Toxic Chemicals,.	IV-61
        Assess Conditions in Indian Country	,	,	IV-78

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-15
        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-10
        Reduce Greenhouse Gas Emissions	«.	,	VI-21
        Reduce Stratospheric Ozone Depletion	,	,	 VI-48
        Protect Public Health and Ecosystems  from PBTs and other Toxics	 VJ-56
        Increase Domestic and International Use of Cleaner and More Cost-Effective Technologies	VJ-66

Goal 7: Quality Environmentallnformation	VII-1
        Increase Availability of Quality Health and Environmental Information	~.	VII-9
        Provide Access to Tools for Using Environmental Information	VII-20
        Improve Agency Information Infrastructure and Security	VII-31

Goal 8: Sound Science, Improved Understanding of Environmental Risks,

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Environmental Protection Agency
2003 Annual Performance Plan and Congressional Justification
Table of Contents
        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-18
        Enhance Capabilities to Respond to Future Environmental Developments	VIII-28
        Improve Environmental Systems Management 	.	 VIII-36
        Quantify Environmental Results of Partnerships Approaches	VIII-45
        Incorporate Innovative Approaches	VIII-48
        Demonstrate Regional Capability to Assist Environmental Decision Making 	VIII-53
        Conduct Peer Review to Improve Agency Decisions	....VIII-55

Goal 9: A Credible Deterrent to Pollution and Greater Compliance with the Law..	IX-1
        Increase Compliance Through Enforcement	,	,	DC-7
        Promote Compliance Through Incentives and Assistance	DC-31

Goal 10: Effective Management	,	,	.X-l
        Provide Leadership	,	,„	X-8
        Manage for Results Through Services, Policies, and Operations	X-l 1
        Provide Quality Work Environment	X-21
        Provide Audit and Investigative Products and Services	,	,.	X-26

Special Analysis
        Annual Performance Plan Components.....	SA-1
        Charging Administrative/Management Costs	SA-2
        EPA User Fee Program	SA-3
        EPA's Customer Service Program ,	,	 SA-5
        FY 2002 Revised Annual Plan	,	SA-10
        Homeland Security	,	SA-14
        Homeland Security Summary	SA-19
        Key Programs by Appropriation	,	 SA-23
        Major Management  Challenges	SA-34
        Pensions and Benefits Accrual Proposal..-.	SA-42
        STAG Appropriation Account: Components	-.	,	SA-43
        STAG Categorical Program Grants: National Program Management & State Grant	SA-44
        STAG Categorical Programs Grants: Statutory Authority and Eligible Uses	,	SA-45
        Working Capital Fund..	,	SA-54

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Introduction/Overview

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Environmental Protection Agency
2003 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 of ten 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.
                                         i-2

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            Organization of the Annual Performance Plan and Budget

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 2003  Annual
Plan and Budget Request 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 Objectives contained in the Agency's  new five-year Strategic Plan,
which was submitted to Congress  in September 2000.  In  2002, the Agency will begin
consultations  with partners and stakeholders to plan for revising  EPA's Strategic Plan.
The Agency will continue to work with partners and stakeholders to take into account our
performance over the past years, and lay out new and innovative tools and approaches to
advance our progress in environmental protection.

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

Annual Performance Plan and Budget Organization;

Resource Tables

       The resource tables provide a broad overview of the resources that the Agency is
requesting for FY 2003 by Goal, Objective, and Appropriation.
                                          i-3

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Payroll Growth
       EPA's  payroll growth in FY 2003, including the Government-wide payroll
increase of 2.6% is  distributed across the goals and objectives.  The explanation of
change sections in each objective chapter,  however, do not discretely identify goal and
objecti9ve changes related to this growth. The explanation of change sections do identify
any payroll changes associated with workyear changes within or across objectives.

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 2003 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  2003 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.

•      Resource  Summary:    Reports  resources  by Appropriation  account for the
       Objective.
                                          i-4

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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 Objective. The Agency has developed Key Program data so that
the total Agency resources are represented in its Key Program resource tables in
each Objective section.

FY 2003 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 2003  Change  from  FY  2002 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. In
the Objective sections of this Annual Plan and Budget, performance information
is provided for three years: FY  2001 - FY 2003.  This Annual Plan and Budget
contains a new section providing performance information for five years,  FY
1999 -  FY 2003,  to fulfill  the requirement to  ultimately show  six years of
performance information.

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.

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.
                                    i-5

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Annual Performance Goals and Measures

       This section, which  is new in the FY 2003 Annual Plan and Budget, provides
performance information for five years: Actual accomplishments for FY  1999 and FY
2000, the estimated performance based on the FY 2001 enacted budget, and performance
estimates based on the budget requests for FY 2002 and FY 2003.

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.

•      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.

•      Customer Service Program: 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.

•      FY 2002 Annual Performance Gal Change Summary:  Describes Annual
       Performance Goals changes to reflect the Agency.'s FY 2002  Enacted budget.

•      Homeland Security: Describes Agency activities related to the Administrations's
       Homeland Security priorities.

•      Key Programs: Reports  totals for Agency Key  Programs, across Goals  and
       Objectives.  As  note above, Key Program resource data now represents 100% of
       the Agency's 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.

*      Pension and Benefits Accrual: The President's budget proposes  that Agencies
       pay the full pension and benefits costs for their employees. This section describes
       EPA's cost estimate for this proposal.

•      State and Tribal  Assistance Grants:   Provides tables on STAG components,
       categorical grants,  and statutory authorities for the STAG appropriation.
                                          i-6

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       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.
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 2003 in this Annual Performance Plan are
based upon the resource levels in the Agency's FY 2003 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 2003 activities will  contribute
to completion of work in  FY  2003  or beyond.   Likewise, some FY 2003  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.
                                          i-7

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                              Annual Plan and Budget Overview

       The Environmental  Protection Agency's FY 2003 Annual  Plan and Budget  requests
$7.724 billion in discretionary  budget authority and supports 17,648 Full  Time Equivalents
(FTE). Resources support the Agency's efforts to work with its partners toward cleaner air, purer
water,  and  better  protected land.   The  Agency's  proposal for  FY 2003  supports  the
Administration's  commitment to  setting  high standards  for environmental protection, while
focusing on results and performance.

Strong Partnerships and Innovative Approaches

       With  this Annual  Plan and  Budget, the Administration demonstrates that  strong
partnerships and innovative approaches are the way to a healthier, cleaner environment.  This
budget provides critical environmental and health protections, with the recognition that State,
local and Tribal governments often have the best solutions for their environmental challenges.
Nearly forty-five percent of our  proposed budget - $3.46 billion — consists of grants for states,
tribes,  and other EPA partners.  This budget supports two innovative state grant programs: one
for environmental in-formation networks and another for state enforcement efforts. This budget
also provides substantial support for the Nation's critical water infrastructure  needs with $2.062
billion for the Clean Water and Drinking Water State Revolving Funds.

A Commitment to Reform and Results

       The Agency is committed to  the Administration's government-wide, citizen-centered
reform efforts.   This Annual  Plan and  Budget represents  a strong  commitment to reduce
regulatory burdens  and  streamline Agency  operations,  so  that  the Agency's  focus is  on
environmental results, rather than process. EPA implemented a significant management reform
by restructuring its budget to match the strategic goals and objective structure of its strategic plan
under the Government Performance and Results Act (GPRA). The Agency's own management
reform agenda fully supports the President's goals for a government that is  citizen-centered,
results-oriented, and market-based. EPA is taking steps to ensure that its workforce is efficiently
focused on delivering environmental results to its ultimate customer: the American people.

       Implementation of  the  President's Management  Reform  Agenda is primary to the
Agency's FY  2003  budget request.  EPA, as well as other Federal  agencies, was provided
baseline scores on five government-wide initiatives, including: Human Capital, E-Government,
Competitive  Sourcing,  Financial  Performance,  and  Budget and  Performance  Integration.
Although widely considered to have scored far better than other federal agencies, EPA will focus
on improvements to the scores,  and moving towards "green"  lights in all areas. The Agency's
plans for progress in these five areas are described throughout this justification.
                                          i-8

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Homeland Security

       The President's FY2003 Budget requests $124 million in new funding for a total EPA
investment of $133.4 million in homeland security. These investments include: $13.2 million for
continued operation of the West Coast Environmental Response Team and enhancing emergency
response capabilities; $5 million in grants to states to enhance homeland security coordination;
$16.9 million to conduct drinking water system vulnerability assessments on small to mid-sized
systems; $19 million to maintain security contracts and continue upgrades at EPA facilities as
initiated by the Emergency Supplemental Appropriation Act; $75 million to conduct research on
better technologies and  assessments  to clean  up buildings  contaminated and biological and
chemical  agents;  $3.8  million  for special agents  who  will provide environmental  crimes
expertise; and $0.5 million to enhance outreach on the agencies Homeland Security efforts to the
public.

Cleaner Air
                                                  Certify that 2 areas of the remaining 45
                                                 nonattainment areas have attained the 1-hour
                                                 NAAQS for ozone, thus increasing the
                                                 number of people living in areas with
                                                 healthy air quality by 1.0 million.
       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.  President Bush has directed EPA
in his National Energy Policy to work with the
Congress to  develop legislation that would establish a flexibility market-based approach to
significantly  cap  and reduce emissions of nitrogen oxides, sulfur dioxide, and mercury  from
power generation utilities.  Also, as part of the implementation of the National Energy Policy,
EPA will work with States, Tribes,  and Local agencies to put in place new source review
programs that are both fairer and more effective in  provide more certainty for the  regulated
communities.
       In FY 2003, EPA will assist States, Tribes and local governments in devising additional
stationary and mobile  source  strategies  to  reduce ozone  and particulate matter,  and other
pollutants.

       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 $232.6  million
included in this budget for air grants which go
directly to States and Tribes.
                                                 Air toxics emissions nationwide from
                                                 stationary and mobile sources combined will
                                                 be reduced by an additional 3% (for a
                                                 cumulative reduction of 40% from the 1993
                                                 level of 6.1 million tons per year.)
                                           i-9

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Addressing Climate Change

       This  budget  request  includes  $129.7
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 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.
                                          Greenhouse gas emissions will be reduced
                                          from projected levels by approximately 73.5
                                          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%.
Purer 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.
                                                   92 percent of the population served by the
                                                   community water systems will receive
                                                   drinking water meeting all health based
                                                   standards in effect'as of 1994, up from 83
                                                   percent in 1994.
Protection     from    Drinking     Water
Contaminants.   The   FY2003    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.
       Drinking Water State  Revolving Fund.   The Drinking  Water State  Revolving Fund
       (DWSRF) request of $850 million will provide substantial funding to States and Tribes to
       upgrade and modernize drinking water systems.

       BEACHES  Grants. This budget includes $10 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."

       New Watershed Investments.  The FY 2003 request includes an initiative designed to
       support watershed- efforts.  The $21  million Targeted Watershed Program recognizes
                                          i-10

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       States' needs for additional support for the range of water quality restoration tools, from
       adequate monitoring to effective and appropriate standards, TMDL development, and to
       implementation of those load limits via point source permit requirements and nonpoint
       source controls.  The Program will provide direct grants to watershed stakeholders ready
       to implement comprehensive restoration actions.

       Helping States Address Run-off and Restore  Polluted Waters. The President's FY 2003
       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.
       Clean Water State Revolving Fund.  This
       budget request includes $1.212 billion 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 allows EPA 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 projects funded by the Clean Water SRF
will initiate operations, including 400
projects providing secondary treatment,
advanced treatment, combined sewer
overflow correction (treatment), and/or storm
water treatment. Cumulatively, 8,600
CWSRF-funded projects will have initiated
operations  since program inception.
•      Protecting Human Health  along the U.S.-
       Mexico Border.  This budget includes $75
       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.

Better Protected Land
  A cumulative 900 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.
Cleaning Up Toxic Waste

•      Keeping  Superfund Working.  This budget
       continues a commitment to clean up toxic
       waste sites with $1.3 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 September 2001,
  EPA and its partners will complete 40
  Superfund cleanups (construction
  completions).

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       cleanups have been completed at 804 sites, and over 6,500 removal actions have been
       taken.
       Revitalizing Local Economies and Creating
       Jobs Through  Brownfields Cleanup  and
       Redevelopment.    The  FY 2003  budget
       request  includes  $200  million  for  the
       Brownfields program, which is an increase
       of over $100 million above the  FY 2002
       request level. The additional resources will
       support the redevelopment and revitalization
       of Brownfields  communities  by providing
       hazardous waste and petroleum contaminated
       programs.   The  Brownfields  program will
       redevelopment of industrial sites, returning
       bringing jobs to blighted areas.
  EPA will provide additional site
  assessment funding to 74 new sites, and to
  52 existing sites, resulting in a cumulative
  total of 3,350 properties assessed, the
  generation of 21,300 jobs, and the
  leveraging of $5 billion in cleanup and
  redevelopment funds since 1995.
  funding  for additional  assessments at
 properties and for state voluntary cleanup
 continue  to promote  local  cleanup  and
 abandoned land to productive use  and
Strong Science

       The  FY 2003  budget supports  EPA's
efforts to further strengthen the role of science in
decision-making  by  using   sound  scientific
information and analysis to help direct policy and
establish priorities.   The Agency  will  achieve
maximum environmental  and health  protections
by  employing  the  highest  quality  scientific
methods, models,  tools, and  approaches.   This
budget request includes $602  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 other environmental statutes.
EPA will provide industry, states, and
consumers with the information on
technology performance they need to make
informed decisions by developing 10 testing
protocols and completing 40 additional
technology verifications for a cumulative
Environmental Technology Verification
(ETV) program total of 230.
Broad-Based and Multi-Media Approaches

Integrating Environmental Information

       In FY2003, EPA will continue its  grant
program that provides assistance to the States and
Tribes to- develop  and  implement the Exchange
Network.   The  grant  program  builds  on  work
currently underway  in several states.   It  assists
  The number of states using the Central Data
  Exchange will increase to 45 as the means by
  which they submit data.
                                          i-12

-------
States and Tribes in evaluating their readiness to participate in the Exchange Network, enhances
their efforts to complete necessary changes to their information management systems to facilitate
Exchange Network participation, and supports state information integration efforts.  The grant
program also proposes providing training and other technical assistance programs to assist States
and Tribes in developing and implementing the Exchange Network.

       The Central Data Exchange (CDX) is  the focal point for securely receiving, translating,
and forwarding data to EPA's data systems — the electronic reporting gateway to the Agency's
information network.  The CDX satisfies the Government Paperwork Elimination Act mandates
by providing the infrastructure necessary to implement electronic signature and electronic filing
of EPA required reports.  In FY2003, the CDX infrastructure, a key component of the Exchange
Network,  will service  45 states  and  an  assemblage  of 25,000  facilities,  companies, and
laboratories.   These facilities  will use  it to  provide  data  to EPA  electronically.  By widely
implementing  an electronic reporting infrastructure,  the CDX will reduce reliance on less
efficient paper-based processes, thereby improving data quality, reducing reporting burden, and
simplifying the reporting process.

Working with  States for Effective, Sensible Enforcement
       Most of the Nation's environmental laws
envision a-strong role for state governments in
implementing   and  managing   environmental
programs.  The FY 2003 request includes  $15
million for the  Agency to continue support to
state    agencies   implementing    authorized,
delegated, or  approved environmental programs
through  the  new  enforcement grant program.
These  funds will continue to allow states greater
responsibility for enforcement of environmental laws and regulations.
EPA will 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.
       The  FY 2003  request will  continue to
support the regulated  community's compliance
with   environmental    requirements    through
voluntary compliance  incentives and  assistance
programs.  The Agency will provide information
and   technical  assistance   to  the  regulated
community  through the  compliance  assistance
program to  increase  its understanding of  all
statutory    or     regulatory     environmental
requirements,  thereby  reducing  risk  to  human
health  and   the   environment  and  gaining
measurable  improvements in  compliance.  The
program will also  continue  to develop strategies
and compliance assistance tools that will support
                                          i-13
EPA will maintain and improve quality and
accuracy of EPA's enforcement and
compliance data to identify noncompliance and
focus on human health and environmental
problems.
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.

-------
     By the end of 2003, EPA will reassess a
     cumulative 68% of the 9,721 pesticide
     tolerances required to be reassessed over ten
     years. This includes 75% of the 893
     tolerances of special concern in protecting the
     health nf children.
initiatives targeted toward improving compliance in specific industrial and commercial sectors or
with certain regulatory requirements.

Ensuring Safe Food through the Food Quality Protection Act (FQPA)

       The FY  2003  request includes $142.3
million to help meet the 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 budget request also supports FQPA-related
science through scientific  assessments of cumulative risk,  including funds for validation of
testing components of the Endocrine Disrupter Screening Program.

SUMMARY

       The EPA's FY2003 Annual Plan and Budget 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 cleaner air, purer water, and  better
protected land now and for generations to come.
i-14

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Resource Tables

-------
Environmental Protection Agency
2003 Annual Performance Plan and Congressional Justification
Table of Contents
Resource Tables
        Resources by Appropriation	 RT-1
        Resources by Goal/Appropriation	RT-2
        Resources by Goal/Objective  	RT-7
        Appropriations Overview .,	,	,	,	RT-13

-------
                                      Environmental Protection Agency
                 FY 2003 Annual Performance Plan and Congressional Justification

                                           Appropriation Summary

                                Budget Authority/ Full-time Equivalencies
                                            (Dollars in Thousands)
Environmental Program & Management
   Budget Authority
   Full-time equivalents (FTE)
Envir. Program & Mgmt - Reim
   Full-time equivalents (FTE)
Science & Technology
   Budget Authority
   Full-time equivalents (FTE)
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)
FEMA REIM
   Full-time equivalents (FTE)
Inspector General
   Budget Authority
   Full-time equivalents (FTE)
Inspector General - Reim
   Full-time equivalents (FTE)
Rereg. & Exped. Proc. Rev Fund
   Full-time equivalents (FTE)
Hazardous Substance Superfund
   Budget Authority
   Full-time equivalents (FTE)
Superfund Reimbursables
   Full-time equivalents (FTE)
Working Capital Fund - Reimb
   Full-time equivalents (FTE)

Subtotal, Environmental Protection Agency
   Budget Authority
   Full-time equivalents (FTE)

Offsetting Receipts

Pension and Benefits Accrual

ENVIRONMENTAL PROTECTION AGENCY (NET)
    Budget Authority
    Full-time equivalents (FTE)
FY2001
Actuals
$2,039,237.1
10,948.0
13.8
$709,132.9
2,562.1
0.3
$28,275.5
$3,623,556.9
$70,699.7
70.7
$14,637.3
92.9
13.0
1.2
$40,784.9
329.7
0.1
175.5
$1,392,409.9
3,146.1
102.1
102.6
$7,918,734.2
17,558.1
$0.0
$99,457.3"
$8,018,191.5
17,558.1
FY 2002
Enacted
$2,054,511.1
11,0092
1.5
$734,980.0
2,532.6
5.9
$25,318.0
$3,733,276.0
$73,000.0
80.3
$15,000.0
100.0
'0.0
0.0
$34.019.0
273.5
0.0
190.7
$1,233,109.0
3,270.3
81.3
99.7
$7,903,213.1
17,645.0
$0.0
$103,588.6
$8,006,801.7
17,645.0
FY2002
Homeland
Security
$39,000.0
60.0
0.0
$90,308.0
12.0
0.0
$0.0
$5,000.0
$0.0
0.0
$0.0
0.0
0.0.
0.0
$0.0
0.0
0.0
0.0
$41,292.0
85.0
0.0
0.0
$175,600.0
157.0
$0.0
$0.0
$175,600.0
157,0
FY2003
Request
$2,047,703.8
11,144,2
1-5
$670,008.0
2,426.3
3.0
$42,918.0
$3,463,776.0
$72,313,0
80.3
$15,581.0
100.0
. 0,0
0.0
$35,325.0
271.6
0.0
1 16,9
$1,272,888.2
3,321,0
83.5
99.7
$7,620,513.0
17,648.0
($4,000.0)
$107,087.8
$7,723,600.8
17,648.0
                                                    RT-.l

-------
                                     Environmental Protection Agency
                FY 2003 Annual Performance Plan and Congressional Justification
                                      Goal, Appropriation Summary
                                              Budget Authority
                                                   Full-time
                                          (Dollars in Thousands)
Clean Air
   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
   Hazardous Substance Superfund
       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)
   State and Tribal Assistance Grants
       Budget Authority
   Hazardous Substance Superfund
       Budget Authority

Safe Food
   Budget Authority
   Full-time equivalents (FTE)
FY 2001
Actuals
$560,547.8
1,794.8
$192,897.2
1,134.6
0.1
$149,400.1
660.1
$218,250.5
$0.0
$3,627,441.4
2,628.1
$465,652.8
2,162.3
6.2
$99,774.8
459.6
$3,062,013.8
$0.0
$124,949.3
817.1
FY 2002
Enacted
$593,361.8
1,830.7
$190,492.6
1,169.1
0.0
$170,260.5
661.6
$232,584.6
$24.1
$3,738,990.3
2,737.3
$469,734.7
2,254.0
0.0
$1 10,396.8
483.3
$3,158,830.0
$28.8
$109,071.7
777.5
FY 2002
Homeland
Security
$600.0
0.0
$600.0
0.0
0,0
$0.0
0.0
$0.0
$0,0
$88,794.0
10.0
$1,000.0
0.0
0.0
$82,794,0
10.0
$5,000.0
$0,0
$1,465.4
2.7
FY 2003
Request
$597,977.3
1,820.0
$190,709.2
1,156.8
0.0
$'174,662.0
663.2
$232,584.6
$21.5
$3,214,674.2
2,742.8
$407,498:9
2,258.9
0.0
$113,319.6
483.9
$2,693,830.0
$25.7
$109,814.6
770.1
                                                  RT-2

-------
    Environmental Program & Management
        Budget Authority
        Full-time equivalents (FTE)
    Science & Technology
        Budget Authority
        Full-time equivalents (FTE)
    Inspector General
        Budget Authority
    Rereg. & Exped. Proc. Rev Fund
        Budget Authority
        Full-time equivalents (FTE)

Preventing Pollution and Reducing Risk in Communities,
Homes, Workplaces and Ecosystems
    Budget Authority
    Full-time equivalents (FTE)
    CREDIT SUBSIDY RE-ESTIMATE
        Budget Authority
    Environmental Program & Management
        Budget Authority
        Full-time equivalents (FTE)
    Envir. Program & Mgmt - Reim
        Full-time equivalents (FTE)
    Science & Technology
        Budget Authority
        Full-time equivalents (FTE)
    State and Tribal Assistance Grants
        Budget Authority

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)
    Envir. Program & Mgmt - Reim
        Full-time equivalents (FTE)
    Science &  Technology
        Budget Authority
        Full-time equivalents (FTE)
    Science  and Tech. - Reim
        Full-time equivalents (FTE)
    .State and Tribal Assistance Grants               *
        Budget Authority

FY 2001
Actuals
$96,196.5
585.6
$12,105.5
56.0
($0.9)
$16,648.2
175.5
$305,072.6
1,131.2
$3,580.0
$176,951.0
967.2
0.9
$24,947.5
163.1
$99,594.1
$1,685,622.1
4,316.4
$159,121.7
1,011.3
0.8
$60,124.1
202.5
0.0
$72,781.2
RT-3

FY 2002
Enacted
$94,204.5
519.0
$14,867.2
67.8
$0.0
$0.0
190.7
$319,915.1
1,204.9
$0.0
$197,789.5
1,037.5
0.0
$24,754.6
167.4
$97,371.0
$1,520,683.8
4,308.5
$166,189.9
1,004.5
0.0
$58,043.8
201.8
5.9
$74,369.7

FY 2002
Homeland •
Security
$1,465.4
2.7
$0.0
0.0
$0,0
$0.0
0.0
$1,734.6
3.3
$0.0
$1,734.6
3.3
0.0
$0.0
0.0
$0.0
$42,300.0
80.0
$3,300.0
5.0
0,0
$0.0
0.0
0.0
$0.0


FY2003
Request
$95,443.0
585,0
$14,371.6
68.2
$0.0
$0.0
116.9
$326,651.9
1,193.9
$0.0
$196,437.3
1,034.1
0.0
$27,843.6
159.8
$102,371.0
$1,711,279.8
4,498.7
$194,328.4
1,222.2
0.0
$15,480,0
96.7
3.0
$249.869.7


-------
    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)
    FEMA RE1M
        Full-time equivalents (FTE)
    Superfund Reimbursables
        Budget Authority
    Hazardous Substance Superfund
        Budget Authority
       . Full-time equivalents (FTE)
    Superfund Reimbursables
        Full-time equivalents (FTE)

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)
    Science and Tech. - Reim
        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

FY 2001
Actuals
$69,762.9
65.2
$14,554.9
92.9
13.0
1.2
$204.4
$1,309,072.9
2,827.4
102.1
$304,287.5
549.7
$156,983.5
429.4
1.0
$48,439.9
119.0
0.3
$98,864.1
$180,067.6
674.0
$151,016.9
621.1
$20.028.9
52.1

FY 2002
Enacted
$70,842.7
70.0
$14,501.2
100.0
0,0
0.0
$0.0
$1,136,736.5
2,845.0
81.3
$276,588.0
517.7
$153,061.6
436.9
0.0 .
$48,526.4
80.8
0.0
$75,000.0
$197,067.8
840.1
$153,093.0
695,2
$10,726.7
51.5
FY2002
Homeland
Security
$0,0
0.0
$0.0
0.0
0.0
0.0
$0.0
$39,000.0
75.0
0.0
$0,0
0,0
$0.0
0.0
0.0
$0.0
0.0
0.0
$0,0
$2,181.5
6.0
$1,281.5
6.0
$0.0
0.0

FY2003
Request
$70,100.2
70.0
$15,075.9
100.0
0.0
0.0
$0.0
$1,166,425.6
2,923.3
83.5
$269,727.2
504.7
$155,878.6
425.9
0.0
$38,848.6
78.8
0.0
$75,000.0
$199,124.0
847.1
$154,022.1
699.6
$9,367.5
50.3
                                                          RT-4

-------
        Budget Authority
    Hazardous Substance Superfund
        Budget Authority
        Full-time equivalents (FTE)
    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)
    Envir. Program & Mgmt - Reim
        Full-time equivalents (FTE)
    Science & Technology
        Budget Authority
        Full-time equivalents (FTE)
    Hazardous Substance Superfund
        Budget Authority
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)
    State and Tribal Assistance Grants
        Budget Authority
    Hazardous Substance Superfund
        Budget Authority
        Full-time equivalents (FTE)

Effective Management
    Budget Authority

FY 2001
Actuals
$0.0
$9,021.8
0.8
0.0
$338,261.4
1,006.4
$67,658.5
234.2 .
0.1
$267,842.6
772.1

$2,760.3
0.0
$393,979.3
2,511.2
$295,304.9
2,331.8
4.3
$10,684.0
77.6
$72,053.2
$15,937.2
97.5
$445,611.9
RT-5

FY 2002
Enacted
$25,000.0
$8,248.1
5.8
87.6
$336,066.9
989.6
$64,118.7
248.9
0.0
$268,868.7
740.7
0.0
$3,079.5
0.0
$386,539.6
'2,442.5
$287,240.4
2,246.2
0.0
$10,948.6
77.7
$70,120.7
$18,229.9
118.6
$424,928.1

FY2002
Homeland
Security
$0.0
$900.0
o.o •
0.0
$1,474.0
2.0
$0.0
0.0
0.0
.$1,474.0
2.0
0.0
$0.0
0.0
$7,010.5
50,0
$5,618.5
40.0
0.0
$0.0
0.0
$0.0
$1,392.0
10.0
$30,040.0


FY 2003
Request
$25,000.0
$10,734.4
9.6
87.6
$327,837.9
996.3
'$67,795.7
248.6
0.0
$254,607.9
747,7
0.0
$5,434.3
0.0
$402,462.9
2,330.7
$286,764.7
2,145.0
0.0
$11,269.5
77.7
$85,120.7
$19,308.0
108.0
$460,963.2


-------
    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
       Budget Authority
    Leaking Underground Storage Tanks
       Budget Authority
       Full-time equivalents (FTE)
    Oil Spill Response
       Budget Authority
    Inspector General
       Budget Authority
       Full-time equivalents (FTE)
    Inspector General - Reim
       Full-time equivalents (FTE)
    Rereg. & Exped. Proc. Rev Fund
       Budget Authority
    Hazardous Substance Superftind
       Budget Authority
       Full-time equivalents (FTE)
    Working Capital Fund - Reimb
       Full-time equivalents (FTE)
    ALLOCATION ACCT
       Budget Authority

Subtotal, Environmental Protection Agency
    Budget Authority
    Full-time equivalents (FTE)

Offsetting Receipts

Pension and Benefits Accrual

ENVIRONMENTAL PROTECTION AGENCY (NET)
       Budget Authority
       Full-time equivalents (FTE)

FY 2001
Actuals
2,129.2
$277,454.1
1,470.5
0.4
$15,785.5
$28,275.5
$936.8
5.5
$82.4
$40.785.8
329.7
0.1
$1,890.0
$55,413.3
220.4
102.6
$24,988.5
$7,918,734.2
17,558.1
$0.0
$99,457.3
$8,018,191.5
17,558.1

FY2002
Enacted
1,996.2
$278,586.2
1,397.9
1.5
$17,586.7
$25,318,0
$2,157.3
10.3
$498.8
$34,019,0
273.5
0,0
$0.0
$66,762.1
300.9
12,1
$0.0
$7,903,213.1
17,645.0
$0.0
$103.588,6
$8,006,801.7
17,645.0
FY 2002
Homeland •
Security
3.0
$24,000.0
3.0
0.0
$6,040.0
$0.0
$0.0
0.0
$0.0
$0.0
0.0
0.0
$0.0
$0.0
0.0
0.0
$0.0
$175,600.0
157.0
$0.0
$0.0
$175,600.0
157.0

FY2003
Request
1,943.7
$298,825.9
1,368.1
1.5
$10,237.7
$42,918.0
$2,212.8
10.3
$505.1
' $35,325.0
271.6
0.0
$0.0
$70,938.7
280.1
12.1
$0.0
$7,620,513.0
17,64.8.0
($4,000.0)
$107,087.8
$7,723,600.8
17,648.0
                                                        RT-6

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                                   Environmental Protection Agency

                FY 2003 Annual Performance Plan and Congressional Justification

                                        Goal, Objective Summary

                                            Budget Authority
                                                 Full-time
                                         (Dollars in Thousands)
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

       Budge't Authority

       Full-time equivalents (FTE) .

FY 2001
Actuals
$560,547.8
1,794.8
. $441,056.4
1,330.5
$101,548.2
377.7
$17,943.2
86.6
$3,627,441.4
2,628.1
$1,171,900.7
835.2
$448.020.6
959.7
$2,007,520.1
833.2

FY 2001
Enacted
$593,361.8
1,830.7
$457,711.8
1,363.0
$114,658.9
375.2
$20,991,1
92.5
$3,738,990.3
2,737.3
$1,268,497.1
887.6
$463,061.1
980.2
$2,007,432.1
869.5
FY 2002
Homeland
Security
$600.0
$0.0
$600.0
0.0
$0.0
0.0
$0.0
0.0
$88,794.0
10.0
$87,749.0
10.0
$0.0
0.0
$1,000.0
0.0

FY 2001
Request
$597,977.3
1,820.0
$458,856.3
1,357.1
$118,023.2
371.4
$21,097.8
91.5
$3,214,674.2
2,742.8
$1,148,425.1
887.4
$435,814.7
988.8
$1,630,434.4
866.6
                                                 RT-7

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Safe Food
    Budget Authority
    Full-time equivalents (FTE)
    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)
    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)

FY 2001
Actuals
$124,949.3
817.1
$44,288.8
318.5 '
$80,660.5
498,6
$305,072.6
1,131.2
$54,262.3
227.0
$33,927.9
139.3
$69,315.0
379.6
$39,190.4
116.4
$41,723.8
183.3
$66,653.2
85.6
FY2002
FY 2001 Homeland
Enacted Security
$109,071.7 $1,465.4
777.5 2.7
$47,007.0 $602.6
335.6 1.4
$62,064.7 $862.8
441.9 1.3
$319,915.1 $1,734.6
1,204.9 3.3
$55,543.9 $482.4
239.9 2.0
$36,273.5 $150.0
144.2 0.0
$74,235.6 $1,102.2
399.0 1.3
$39,670.1 $0.0
134.0 0.0
$48,755.4 $0.0
197.0 0.0
$65,436.6 $0.0
90.8 0.0

FY 2001
Request
$109,814.6
770.1
.$45,290.4
331.1
$64,524.2
439.0
$326,651.9
1,193.9
$55,409.8
239.1
$36,355.9
144.7
$77,538.2
391.2
$40,322.7
132.2
$46,115.9
196.0
$70,909.4
90.7
                                                          RT-8

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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)

    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)

FY 2001
Actuals
$1,685,622.1
4,316,4
$1,524,914,9
3,556.1
$160,707.2
760.3
$304,287.5
549.7
$120,000.8
82.9
$149,610.2
347.1
$18,989,4
34.8
$4,772.6
31.0
$10,914.5
53.9
FY 2002
FY2001 Homeland
Enacted Security
$1,520,683.8 $42,300.0
4,308.5 80.0
$1,354,840.9 $42,300.0
3,500.7 0.0
$165,842.9 $0.0
807.8 0.0
$276,588.0 $0.0
517.7 0.0
$96,869.4 $0.0
83.5 O.Q
$145,293.6 $0.0
317.3 0.0
$15,843.2 $0.0
30.1 0.0
$6,060.9 $0.0
32.8 0.0
$12,520.9 $0.0
54.0 . 0.0

FY 2001
Request
$1,711,279.8
4,498.7
$1,544,018.6
3,698.3
$167,261.2
800.4
$269,727.2
504.7
$98,185.9
80.8
$136,953.4
303.9
$15,813.3
29.7
$6,173.6
35.6
$12,601.0
54.7
Quality Environmental Information

    Budget Authority
$180,067.6
$197,067.8
$2,181.5
$199,124.0
                                                          RT-9

-------
    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)
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

FY 2001
Actuals
674.0
$80,122.2
462.1
$83,127.7
210.8
$16,817.7
1.1
$338.261.4
1,006.4
$134,525.5
349.0
$52,407.6
163.4
$48,626.6
159.6
$59,130.3
164.5
$9,539.9
16.1
$24,887.3
RT-
10
FY 2002
FY 2001 Homeland
Enacted Security
840.1 6.0
$121,920.2 $0.0
478.2 0.0
$53,261.9 $253.1
180.5 3.0
$21,885.7 $1,928.4
181.4 3.0
$336,066.9 $1,474.0
989.6 2.0
$120,594.7 $0.0
352.6 0.0
$53,021.7 $0.0
175.8 0.0
$62,808.9 $1,440.6
150.6 2.0
$57,723.6 $33.4
148.2 0.0
$8,672.7 $0.0
16.7 0.0
$23,324.5 $0.0



FY 2001
Request
847.1
$120,414.7
492.1
$48,181.3
169.7
$30,528.0
185.3
$327,837.9
996.3
$119,114.6
350.9
$56,355.0
176.0
$50,965.8
152.6
$52,274.1
146.6
$9,058.4
18.0
$29,787.9



-------
        Full-time equivalents (FTE)

    Demonstrate Regional Capability to Assist
        Environmental Decision Making.

        Budget Authority

        Full-time equivalents (FTE)

    Conduct Peer Review to Improve Agency
        Decisions.

        Budget Authority

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

    Budget Authority

    Full-time equivalents (FTE)

    Increase Compliance Through Enforcement.

        Budget Authority

        Full-time equivalents (FTE)

    Promote Compliance Through Incentives and
        Assistance.

        Budget Authority

        Full-time equivalents (FTE)



Effective Management

    Budget Authority

    Full-time equivalents (FTE)

    Provide Leadership

        Budget Authority

        Full-time equivalents (FTE)

    Manage for Results Through Services, Policies,
        and Operations.

        Budget Authority

        Full-time equivalents (FTE)

    Provide Quality Work Environment.

        Budget Authority

        Full-time equivalents (FTE)

    Provide Audit. Evaluation, and Investigative
        Products and Services

        Budget Authority

FY2001
Actuals
127.1
$6,417.2
3.9
$2,727.0
22.8
$393,979.3
2,511.2
$337,582.6
2,092.2
$56,396.7
419.0
$445,611.9
2,129.2
$40,847.0
283.2
SI 78,77 1.0
1,492.2
$177,971,0
17,7
$48,022,9 '
RT-
11
FY 2002
FY 2001 Homeland
Enacted Security
120.2 0.0
$6,677.9 $0.0
3.0 0.0
$3,242.9 $0.0
22.5 0.0
$386,539.6 $7,010.5
2,442,5 50.0
$330,771.1 $7,010.5
2,025.9 .50.0
$55,768.5 $0.0
416.6 0.0
$424,928.1 $30,040.0
1,996.2 3.0
$47,207.9 $0.0
306.8 0.0
$186,431,5 $0.0
1,294.0 0.0
$139,327.3 - $30,040-0
21.3 3.0
$51,961.4 $0.0



FY 2001
Request
126.7
$6,591.8
3.0
$3,690.3
22.5
$402,462.9
2,330.7
$346,590.5
1,932.6
$55,872.4
398.1
$460,963.2
1,943.7
$49,767.0
311.4
$201,462.0
1,244.6
$156,141.5
1.5.4
$53,592.7



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                                                                                        FY 2002
                                                 FY2001            FY2001          Homeland          FY2001
                                                 Actuals            Enacted           Security           Request
       Full-time equivalents (FTE)                          336,1                 374.1                0.0                   372,3



Subtotal, Environmental Protection Agency

    Budget Authority                                $7,918,734.2           $7,903,213.1          $175,600.0             $7,620,513.0
    Full-time equivalents (FTE)                           ]7>558 j               17)6450              1570                 17>6480


Offsetting Receipts                                         $00                  $00               $00               ($4,000.0)


Pension and Benefits Accrual                             £99,457,3             $103,588.6               $0.0               $107,087.8


ENVIRONMENTAL PROTECTION AGENCY
    (NET)
       Budget Authority                    .        $8,018,191.5           $8,006,801.7          $175,600.0             $7,723,600.8

       Full-time equivalents (FTE)                        17,558.1               17,645.0              157,0                 17,648.0
                                                      RT-
                                                      12

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                                 APPROPRIATIONS SUMMARY
                          ENVIRONMENTAL PROTECTION AGENCY
                                  (DOLLARS IN THOUSANDS)
Appropriation Account
FY 2001
Actuals
FY 2002
Enacted
FY 2002
Homeland
Security
FY 2003
Request
Science and Technology

Environmental Programs and
Management

Office of Inspector General

Buildings and Facilities

Oil Spills Response

Superfund


Leaking Underground Storage Tanks

State and Tribal Assistance Grants:

Subtotal, EPA

   Offsetting Receipts

   Pension and Benenfits Accrual
  $709,132.9     $698,089.0


$2,039,237.1   $2,054,511.1

   $40,784.9      $34,019.0

   $28,275.5      $25,318.0

   $14,637.3      $15,000.0

$1,392,409.9   $1,270,000.0
$90,308.0     $670,008.0


$39,000.0   $2,047,703.8

     $0.0      $35,325.0

     $0.0      $42,918.0

     $0.0      $15,581.0

$41,292.0   $1,272,888.2
   $70,699.7      $73,000.0            $0.0      $72,313.0

$3,623,556.9   $3,733,276.0        $5,000.0   $3,463,776.0

$7,918,734.2   $7,903,213.1      $175,600.0   $7,620,513.0

       $0.0          $0.0            $0.0      ($4,000.0)

   $99,457.3     $103,588.6            $0.0     $107,087.8
Total EPA
$8,018,191.5   $8,006,801.7      $175,600.0   $7,723,600.8
                                              RT-13

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                                 APPROPRIATIONS SUMMARY
                           ENVIRONMENTAL PROTECTION AGENCY
                                  (DOLLARS IN THOUSANDS)
Appropriation Account
FY2001
Actuals
FY2002
Enacted
FY 2002
Homeland
Security
FY 2003
Request
Science and Technology

Environmental Programs and
Management

Office of Inspector General

Buildings and Facilities

Oil Spills Response

Superfund


Leaking Underground Storage Tanks

State and Tribal Assistance Grants:

Subtotal, EPA

   Offsetting Receipts

   Pension and Benenfits Accrual
  $709,132.9     $698,089.0


$2,039,237.1   $2,054,511.1

   $40,784.9      $34,019.0

   $28,275.5      $25,318.0

   $14,637.3      $15,000.0

$1,392,409.9   $1,270,000.0


   $70,699.7   ,   $73,000.0

$3,623,556.9   $3,733,276.0

$7,918,734.2   $7,903,213.1

        $0.0           $0.0

   $99,457.3     $103,588.6
 $90,308.0     $670,008.0


 $39,000.0   $2,047,703.8

      $0.0      $35,325.0

      $0.0      $42,918.0

      $0.0      $15,581.0

 $4.1,292.0   $1,272,888.2


      $0.0      $72,313.0

  $5,000.0   $3,463,776.0

$175,600.0   $7,620,513.0

      $0.0      ($4,000.0)

      $0.0     $107,087.8
Total EPA
$8,018,191.5   $8,006,801.7
$175,600.0   $7,723,600.8
                                              RT-13 '

-------
                                 APPROPRIATIONS SUMMARY
                          ENVIRONMENTAL PROTECTION AGENCY
                                  (DOLLARS IN THOUSANDS)
Appropriation Account
FY 2001
Actuals
FY2002
Enacted
FY 2002
Homeland
Security
FY 2003
Request
Science and Technology

Environmental Programs and
Management

Office of Inspector General

Buildings and Facilities

Oil Spills Response

Superfund


Leaking Underground Storage Tanks

State and Tribal Assistance Grants:

Subtotal, EPA

   Offsetting Receipts

   Pension and Benenfits Accrual
  $709,132.9    $698,089.0


$2,039,237.1   $2,054,511.1

   $40,784.9      $34,019.0

   $28,275.5      $25,318.0

   $14,637.3      $15,000.0

$1,392,409.9   $1,270,000.0


   $70,699.7      $73,000.0

$3,623,556.9   $3,733,276.0

$7,918,734.2   $7,903,213.1

       $0,0          $0.0

   $99,457.3    $103,588.6
 $90,308.0     $670,008.0


 $39,000.0   $2,047,703.8

      $0.0      $35,325.0

      $0.0      $42,918.0

      $0.0      $15,581.0

 $41,292.0   $l,272-,888.2


      $0.0      $72,313.0

  $5,000.0   $3,463,776.0

$175,600.0   $7,620,513.0

      $0.0      ($4,000.0)

      $0.0     $107,087.8
Total EPA
$8,018,191.5   $8,006,801.7
$175,600.0   $7,723,600.8
                                              RT-13

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Goal 1: Clean Air

-------
Environmental Protection Agency
2003 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 1: Clean Air	,	1-1
       Attain NAAQS	1-13
       Reduce Risk from Air Toxics	,	, 1-50
       Acid Rain	,	1-63

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                            Environmental Protection Agency

            FY 2003 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 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.

                                   Resource Summary
                                  (Dollars in thousands)

Clean Air
Attain NAAQS
Reduce Air Toxics Risk
Reduce Acid Rain.
Total Workyears
FY 2001
Actuals
$560,547.8
$441,056.4
$101,548.2
$17,943.2
1,794.8
FY 2002
Enacted
$593,961.8
$458,311.8
$114,658.9
$20,991.1
1,830.7
FY 2003
Request
$597,977.3
$458,856.3
$118,023.2
$21,097.8
1,820.0
FY2003Req.
v. FY 2002 Ena.
$4,015.5
$544.5
$3,364.3
$106.7
-10.7
Background and Context

       The  average  American  breathes over 3,000  gallons of air each day.   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 also are more sensitive to air pollution because they often have
heart or lung disease.

      . Certain pollutants (such as some metals and organic chemicals) that  are emitted from
industrial and other sources can be deposited into water bodies and magnified through the food
web, adversely affecting fish-eating animals and humans.  Currently, about 2,500 water bodies
are under fish consumption advisories resulting from chemicals such as PCBs, chlordane, dioxins
and mercury.  Air pollution also makes soil and waterways more acidic, reduces visibility, and
accelerates corrosion of buildings and monuments.

       The  air pollution problem  is national and international in scope.  Air pollution regularly
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 who live  in expanding urban
areas, but also for less populated areas and national parks.  Federal assistance and leadership are
essential for  developing  and  implementing 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 preparing their
clean air plans.
                                           1-1

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

••     Ground-level ozone (smog).  Ozone can  irritate and inflame airways.   Health effects
       attributed to exposures to ozone, generally while individuals are engaged in moderate or
       heavy exertion, include significant decreases in lung function and increased respiratory
       symptoms such as chest pain and cough. Exposures to ozone result in lung inflammation,
       aggravate respiratory diseases such as asthma and may make people more susceptible to
       respiratory infection.   Children active  outdoors are  most at  risk of experiencing  such
       effects.   Other at-risk  groups include adults who are active  outdoors such as outdoor
       workers and individuals with respiratory disorders such as asthma.  Ground-level ozone
       interferes with the ability of plants to produce and store food, which reduces  crop and
       forest yields by making plants more susceptible to disease, insects,  other pollutants and
       harsh weather.  It damages the leaves of trees and other plants, affecting the appearance
       of cities,  national parks and recreation areas.

••     Sulfur dioxide (SOg).   Peak levels of SO2 can cause temporary breathing difficulty for
       people with asthma who are active outdoors. Longer-term exposure to a combination of
       SO2  and  fine  particles can cause respiratory illness, alter the defense mechanisms  of
       lungs, and aggravate cardiopulmonary disease.  People who may be most susceptible to
       these effects include individuals with cardiovascular  disease or chronic lung disease, as
       well as children and the elderly.  SO2 is also a major contributor to acidic deposition.

*"     Nitrogen dioxide  (NO?).  Exposure to  NO2  causes respiratory  symptoms  such  as
       coughing, wheezing, and shortness of breath in children and adults with respiratory
       diseases,  such as asthma.  Even short exposures to NOa affect lung function. NOa also
       contributes to acidic deposition, eutrophication in coastal waters, and visibility problems.

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

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

••     Particulate  matter (PM).  PM causes a  wide variety  of  health and  environmental
       problems. When exposed to PM, people with existing lung or heart diseases  - such as
       asthma,  chronic obstructive pulmonary disease, congestive heart  disease, or  coronary
                                           1-2   "

-------
       artery disease - are at increased risk of health problems requiring hospitalization or of
       premature death.  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 can aggravate  existing respiratory  diseases,
       such as asthma and chronic bronchitis, causing more use of medication and more doctor
       visits.   PM is also the major cause of reduced visibility in parts of the U.S., including
       many of our national parks. Particles can be carried over long distances by wind and then
       settle on ground or water. The effects of this settling include:  making lakes and streams
       acidic, changing the nutrient balance in coastal waters and large river basins, depleting
       the nutrients in  soil, damaging sensitive forests and farm crops, and decreasing  the
       diversity of ecosystems.

   Populations  of Counties with  Air Quality Concentrations
                          Above the NAAQS  Level
        CO
                       20
40       , 60        80
        Millions of People
100
120
140
       Hazardous air pollutants.  Hazardous air pollutants (HAPs), commonly referred to as
air toxics, are pollutants that are known or suspected to cause cancer or other serious health
problems, such as reproductive effects or birth defects, or adverse environmental effects. EPA is
working with state, local, and Tribal governments to reduce air releases of 188 pollutants listed
in the Clean Air Act Amendments of 1990.  Examples of air toxics include mercury and BTX.
HAPs are emitted from literally thousands of 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.
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       Compared to information for the criteria pollutants, the information about the ambient
concentrations of HAPs and their potential health effects is relatively incomplete.  Most of the
information on the potential health  effects of these pollutants is  derived from experimental
animal data.  Of the 188 HAPs, almost 60 percent are classified by the Clean Air Act (section
112.(f)(2)(A)) as  known, probable, or possible carcinogens.  One of the often documented
ecological concerns associated with  toxic air pollutants is the potential for some to damage
aquatic ecosystems. Deposited air pollutants can be significant contributors to overall pollutant
loadings entering water bodies.

       Acid rain.  Emissions of sulfur dioxide (SOi) and nitrogen oxides (NOX) react in the
atmosphere  and fall to  earth as acid rain, causing  acidification  of lakes  and  streams and
contributing to the damage of trees at high elevations. Acid deposition also accelerates the decay
of building materials and paints and contributes to degradation of irreplaceable cultural objects,
such as statues and sculptures.  NOX deposition also contributes to  eutrophication of coastal
waters, such as the Chesapeake Bay and Tampa Bay. Before falling to earth, SOa and NOX gases
form fine particles that  affect public 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. The air in the U.S. is now the cleanest it has been during the 20 years that EPA
has been tracking air quality.  National air quality, measured at thousands of monitoring stations
across the country, has shown improvements for all six principal pollutants: CO, lead, NO2, SO2,
ozone, and PM. This means that during the past 20 years, Americans have been able to breathe a
little easier, see a  little better, and enjoy a cleaner environment. Additional steps still need to be
taken, however, to bring remaining areas with unhealthful air fully into compliance with health-
based air quality  standards.  The nation also faces  a significant  challenge in maintaining this
historical trend of improving air quality, given expectations for future growth in the economy,
the population, and highway vehicle use. In addition, ambient concentrations of many hazardous
air pollutants remain high and continue to impose significant health risks on exposed individuals.
      .EPA  tracks  trends  in  key   air
pollutants through an Air Quality Index that
reflects the number of days that any health-
based  standard  is  violated.   As  the  chart
shows,  the  percentage  of days across  the
country that air quality  violated a  health
standard has dropped from almost 10 percent
in 1988 to 3 percent in 2000, Even on those
days, the standard was generally violated
only for  a  few hours, although these late
afternoon hours tend  to  be  when many
children and adults are outside engaging in
work and exercise that increases the severity
of exposure to unhealthful air.
    tlOx, SO2l and  VOC
    Emission Trends,
    1900-1997
30
million
short
t&ns
1900 '1SJ -38 •» "40 "50 13 79 >89 Vt  2000
                                          1-4

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       Nationwide, emissions of air toxics dropped approximately 30 percent between 1990 and
 2000. 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.  Measures taken from 84
 urban monitoring sites around the country show a 39-percent drop in benzene levels from 1993
 to  1998.  Since implementation of EPA's acid rain program in 1995, there have been dramatic
 reductions (10 to 25 percent) in sulfates deposited in many of the most acid sensitive ecosystems
 located in the Northeastern U.S.

       Although 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 improving air
 quality,  over 160 million tons of air pollution were released into the air in 2000 in the U.S.
 Approximately 121 million people'lived in counties where monitored air was unhealthy because
 of high levels of the six principal air pollutants.  Some national parks, including the Great Smoky
 Mountains  and the Shenandoah, have high air pollution  concentrations resulting from  the
 transport of pollutants many miles from their original sources. In 2000, for the third consecutive
 year, rural 1-hour ozone (smog) levels were greater than the average levels observed for urban
 sites, but they are still lower than levels observed at suburban sites.

 Means and Strategy

       Strategy. EPA's overall goals for the air quality program include: improving air quality
 and addressing  highest health and environmental risks, while reducing program costs; getting
 better results in less burdensome  ways; and increasing the  roles  of state  Tribal, and local
 governments.  The Clean Air Act provides the principal framework for national, state,  Tribal,
 and local efforts to protect and improve air  quality and reduce risks. Under the Clean Air Act,
 EPA has a number of responsibilities:

• •       Ensuring continued protection of public health  and the  environment through regular
       review of National Ambient Air  Quality  Standards  (NAAQSs) for the six  criteria
       pollutants and revision  of the NAAQSs,  if necessary, based on the latest scientific
       information available.

 •       Ensuring that the NAAQSs are met  by developing and  carrying out national regulatory
        and non-regulatory programs that reduce air pollution from vehicles, factories, and other
        sources, and by working in partnership with state,  Tribal, and local governments on
        implementing their clean air programs.

 •      Assessing public health risks from air toxics  and  reducing public exposure to pollutants
       that cause or may cause cancer and other adverse  human health effects through pollution
       prevention and reduction of toxic emissions.

 •       Reducing acid rain through a market-based approach that provides flexibility to electric
        utilities and other large sources of SOi and NOX in  how they meet emission reduction
        requirements.
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       Protecting and enhancing visibility  across large regional areas, including many of the
       Nation's most treasured parks and wilderness areas, by reducing pollutants such as PM,
       SO2,andNOx.

       Providing a strong scientific basis  for policy and regulatory  decisions  and exploring
       emerging problem areas through a coordinated, comprehensive research program.

                    Comparison of Growth Areas and Emission Trends
                                 (Between 1970 and 2000)
                                                         U.S.
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       efficiency, while  maintaining  the  accountability  and enforceability  of traditional air
       quality management programs.

•      Consensus building.  In implementing the Clean Air Act, the Agency has emphasized
       consensus building, and broad stakeholder involvement. Examples include:
       • •    Working cooperatively  with industry on toxics standards (e.g., the regulatory-
             negotiation with the coke oven industry).
       • •    Working  with industry to implement innovative approaches  (e.g.,  the  auto
             industry voluntarily agreeing to meet National Low Emission Vehicle standards).
       * *    Meeting with the refining industry, the auto industry, and state officials to balance
             the many concerns in the Tier II rulemaking and promulgating a complicated and
             groundbreaking national program supported by a wide range of stakeholders.

•      Systems approach. Tier II also is a good example of how the Agency looks at air quality
       problems from a broader perspective and takes advantage  of the potential synergies. As
       catalyst technology requires low-sulfur fuel, the Agency is regulating fuels and vehicles
       as  one system, to give  pollution control  manufacturers  the incentive to  develop  even
       cleaner technologies. This results in a greater reduction in pollution — at less cost -- than
       by addressing fuels and vehicles separately.

•      Innovative technology. EPA increasingly  incorporates incentives and performance-based
       approaches into regulations to spur new technologies that will help meet ambitious goals
       more cost-effectively (sometimes at even less cost than EPA has predicted). The Agency
       also is building partnerships  that help develop and deploy these new technologies.  The
       report prepared to meet the requirements of section 812 of the Clean Air Act includes a
       list of the technologies that have  been developed since  the 1990 Amendments.  The
       advances have been remarkable. Technologies like SCR on power plants, ultra-low NOX
       burners, or advanced  catalysts now have entered  the mainstream, at  far  less  cost than
       anyone predicted.

Research

       EPA's NAAQS-related research supports  the Agency's Clean Air Goal to meet national
clean air standards for carbon monoxide (CO), sulfur dioxide (SO2), nitrogen oxides (NO\), lead,
tropospheric ozone, and particulate matter (PM).  This research provides methods, models,  data,
and assessment criteria on the health risks associated with these and other pollutants, alone and
in combination, focusing  on the exposures, health effects, mechanisms of injury, and identifying
components  of particulate  matter  (PM).   In addition,  this  research provides  NAAQS -
implementation tools  to support efforts by industry,  and state, Tribal, and local regulators, to
develop and improve State Implementation Plans (SIPs) to attain the NAAQS.

       Research on air toxics investigates the root causes of the environmental and human health
problems  in urban areas related to these pollutants.  These efforts provide the necessary health
effects data, measurements, methods, models, information, assessments, and technical support to
EPA, state, Tribal, and local regulators to estimate human health effects and aggregate exposures
to hazardous air pollutants. Research also  supports atmospheric and emission modeling in order
                                          1-7

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to estimate fate, ambient concentrations, and mobile source emissions of air toxics at a more
refined scale. With this information the Agency will be in a better position to determine risk and
develop alternative strategies for maximizing risk reductions.

Strategic Objectives and FY 2003 Annual Performance Goals

Attain NAAQS

•      Maintain healthy air quality for 44.1 million people living in monitored areas attaining
       the ozone standard; certify that 2 areas of the remaining 45 nonattainment areas have
       attained the 1-hour NAAQS for ozone thus  increasing the number of people living in
       areas with healthy air by 1.0 million.

•      Maintain healthy air quality for 7.2 million  people living in monitored areas attaining the
       PM standards; increase by 81 thousand the number of people living in areas with healthy
       air quality that have newly attained the standard.

•      Maintain healthy air quality for 52.7 million people living in monitored areas attaining
       the CO, SO2, NO2, and Lead standards; increase by 4.1 million the number of people
       living in areas with healthy air quality that have newly attained the standard.

Reduce Air Toxics Risk

•      Air toxics emissions nationwide from stationary and mobile sources combined will be
       reduced by an additional 3% of the updated 1993 baseline of 6.1 million tons (for a
       cumulative reduction of 40% from the 1993 level of 6.1 million tons per year.)

Reduce Acid Rain

    •   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.

    •   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.

Highlights

       Continue progress toward NAAQSs attainment.  For FY 2003, EPA will implement
the President's National Energy Policy; continue the regular reviews of the NAAQSs;  carry out
programs  to  meet NAAQSs  and regional haze  requirements; and  continue the research, air
quality monitoring, and laboratory analyses that provide the scientific and technical bases for the
NAAQS program.
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Multi-pollutant legislation.  President Bush has directed EPA in his National Energy
Policy to work with the Congress to develop legislation that would establish a flexible,
market-based approach  to significantly  cap  and reduce emissions  of NOX,  862, and
mercury from the power generation sector.  The legislation would build on the successful
acid rain  program  and on  the  NOX allowance trading program  for the Northeast.
Reducing emissions of NOX and SO? will reduce levels of ground-level ozone and PM, as
well as acid deposition.

New Source Review reform.   Also as part of the implementation of the National Energy
Policy, EPA will work with states, Tribes and local agencies to put in place revised New
Source Review programs.  EPA is working with stakeholders to explore options that are
both fairer and more effective and provide more certainty for the regulated communities.

Review of NAAOS.  By the end of FY  2002, EPA will make available to  the public a
comprehensive assessment of recent scientific findings on the health  and  environmental
risks associated with PM. 'Following completion of this assessment and a staff paper that
evaluates the policy implications  of the scientific findings, EPA will  propose a decision
on whether to  retain or revise the PM NAAQS. This proposal is scheduled for late  FY
2003 or early FY 2004.

Implementation of existing NAAOSs.  On the national level, EPA will work with states,
Tribes, and local governments  on developing and implementing measures to meet clean
air standards.  The Agency will continue technical support for implementing the  1-hour
ozone NAAQS,  EPA  also will  support  states and  Tribes in developing innovative,
voluntary programs that will help to achieve early reductions in the transition to the 8-
hour ozone standard. The Agency also will develop a strategy and guidance for transition
from the PM-10 standard to a fine particulate  standard. We will work to promote and
expand  the use of voluntary,  and smart  growth  and other innovative  approaches to
provide emission reductions.

Public information.  EPA and states will expand  outreach efforts  to promote public
awareness of the Air Quality Index.

Vehicle, engine,  and  fuels standards.   EPA will establish and  implement Federal
standards to require cleaner motor vehicles, fuels, and non-road equipment that are cost-
effective and technically feasible.  The Agency will continue implementation of the Tier
II and gasoline sulfur standards. The Agency also will continue work  on the  2007 heavy-
duty highway  engine  and diesel  sulfur requirements.   In addition, EPA will  develop a
proposed rule  establishing new standards for heavy-duty,  non-road, land-based diesel
engines and vehicles.

Testing for compliance. EPA will continue research, monitoring and  laboratory analysis
of industry compliance to national air quality standards. By 2003, a  dramatic change in
the type and amount of testing will be required at EPA's National-Vehicle and Emissions
Laboratory (NVFEL) to ensure meeting the goals of the Tier II and Heavy Duty Engine
regulations, as well  as to proceed  with advancements in vehicle emission control
                                   1-9

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       technologies.   To  meet this challenge,  EPA will  require an investment for essential
       emission measurement system  upgrades  at the NVFEL in order to (1) fully implement
       and enforce the new Tier II emission standards and test procedures for all passenger cars
       and light trucks beginning with the FY 2004 model year; (2) implement and enforce the
       model years 2004 and 2007 Diesel Engine Standards for all on-highway heavy-duty
       engines;  and  (3)  develop digital and computer-based emission  measurement  system
       upgrades required to accurately measure the next generation of emission control systems.

       Reduce public exposure to air toxics.  In FY 2003, 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.  The Agency also will
target  source characterization work,  especially development and  improvement of emissions
information, that is essential  for the states, Tribes, and local agencies to develop strategies to
meet the standards. EPA 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.  Some specific activities and initiatives in this program for FY 2003
include:

•      Air toxics monitoring.  EPA will work  with states to expand the toxic air monitoring
       network operated by state. Tribal, and local agencies. This expansion will help assess the
       success  of EPA's comprehensive air toxics  strategy  as well as  the .multi-pollutant
       strategy.  Such monitoring data will also enable EPA to benchmark its models and to
       track ambient  trends for inhalation-risk  air toxics and toxic components of particulate
       matter such as BTX.   In the  long term, assessments of ambient air toxics  will help
       achieve a reduction in the incidence of cancer attributable to exposure to hazardous air
       pollutants emitted by  stationary sources  of hazardous air pollutants  of not less than 75
       percent, considering control of emissions of hazardous air pollutants from all stationary
       sources and resulting from any  measures implemented by EPA or by the states.

•      Air toxics mles.  EPA will continue the extensive residual risk analyses for  already
       promulgated Maximum Achievable Control Technology (MACT)  standards to determine
       if additional standards are necessary to reduce the remaining risks from these sources.

•      Mobile sources air toxics.  In  FY 2001, EPA issued a rule to address emissions of air
       toxics from mobile sources. In the rule, the Agency identified 21 mobile source air toxics
       and established new gasoline toxic emission performance standards. The rule established
       a Technical Analysis Plan to conduct research and  analysis on mobile source air toxics.
       Based on the results of that research, EPA will consider future rulemaking in 2004 in
       which EPA will revisit the feasibility and need for additional  controls for non-road and
       highway engines and  vehicles  and their fuels.  To prepare for this review, in FY 2003,
       EPA  will  continue  gathering emissions  data,  conducting  exposure  analyses, and
       evaluating the  need for additional controls.  EPA also will incorporate toxics emissions
       data into the mobile source models.
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       Implement Market-based acid rain program*

       For FY 2003 EPA will continue to carry out the market-based acid rain program, tracking
emissions, auditing and certifying monitors, recording transfers of allowances, and reconciling
emissions and allowances.

•       Phase II implementation.  EPA will continue to implement the trading system, tracking
       transfers of emission  allowances from the expanded number of electric utility units
       covered by the Phase II requirements of the Clean Air Act.

       Monitoring and assessment. EPA will manage the operation of the Clean Air Status and
       Trends Network (CASTNet), a wet deposition network, and provide operational support
       for the National Atmospheric Deposition Program (NADP), a dry deposition network.
       The Agency will use the monitoring results, along with other information, to help assess
       the effectiveness of the acid rain program in reducing health and environmental risks.

Research

       EPA's NAAQS-related research program will  develop new information and assess
existing studies to support statutorily  mandated  reviews  of the  NAAQS  and will upgrade
methods and models needed to guide development of state implementation plans (SIPs), used to
achieve the NAAQS.   In  FY 2003, tropospheric  ozone research will evaluate  and refine
emissions and air quality models to support efforts by Agency, state, Tribal and local regulators,
as well as industry, to  improve  SIPs for tropospheric ozone.  The particulate  matter (PM)
research program will continue work to strengthen the scientific basis for the periodic review of
the PM NAAQS, including conducting epidemiological and exposure studies. The PM program
will  also develop tools and methods for use  by states, Tribal, and local regulators to assess
control options to improve PM NAAQS implementation plans that will move the Agency toward
its objective of reducing Americans' exposure to PM. Also included under this objective will be
research to support review  of the lead, carbon monoxide, sulfur dioxide, and nitrogen oxide
NAAQS.

       Air toxics research provides information on effects, exposure, source characterization, as
well as other data to quantify existing emissions and to identify key pollutants and strategies for
cost  effective risk management.   In FY  2003,  research  will focus  on completing health
assessments for some of the highest priority hazardous air pollutants, and providing the science
and technical support to Agency, state, Tribal and local regulators to estimate health effects and
exposures to hazardous air pollutants both indoors and outdoors and to reduce risks.

External Factors

       Stakeholder participation.  To achieve clean air, EPA  relies  on the cooperation of
Federal, state, Tribal, and local government agencies; industry; non-profit organizations; and
individuals.  Success is far from guaranteed, even with the full participation of all stakeholders.
EPA has significant work to accomplish just to reach the annual targets that lead to the longer
term health and environmental outcomes and improvements that are articulated in the Clean Air
                                          1-11

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goal.  Meeting the Clean Air goal necessitates a strong partnership among all the stakeholders,
but in particular among the states,  Tribes, and EPA; the Environmental Council of States; and
organizations of state and local air pollution control officials.  EPA will be working with various
stakeholders to encourage new ways to meet the challenges of "cross regional" issues as well as
to integrate programs to address airborne pollutants more holistieally.

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

       Litigation.  In July  1997, EPA  published revised, more protective NAAQSs 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.

       A decision from the D.C. Circuit  on the unresolved issues related to the 1997 standards is
expected in Spring 2002. Currently, EPA is evaluating the Supreme Court opinion, the opinions
of the D.C. Circuit, and several legislative provisions to determine how to proceed. The Agency
believes that the standards are necessary  to protect public health and nothing in the decisions
undercuts that belief.  We are evaluating  our programs to determine how best to secure necessary
public 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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                           Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                      Clean Air

Objective: 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 2005 for carbon
monoxide, sulfur dioxide, nitrogen dioxide, and  lead; by 2012 for ozone; and by  2018 for
particulate matter (PM). To accomplish this in Indian country, the tribes and EPA will, by 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
Hazardous Substance Superfund
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$441,056.4
$130,946.1
$0.0
$119,599.5
$190,510.8
1,330.5
FY2002
Enacted
$458,311.8
$11.9,768.2
$24.1
$138,553.0
$199,966.5
1,363.0
FY 2003
Request
$458,856.3
$118,516.4
$21.5
$146,851.9
$193,466.5
1,357.1
FY 2003 Req.
v. FY 2002 Ena.
$544.5
($1.251.8)
- ($2,6)
$8,298.9
($6,500.0)
-5.9
                                  .   Key Program
                                 (Dollars in Thousands)

Administrative Services
Air,State,Local and Tribal Assistance Grants:
Other Air Grants
Carbon Monoxide
Congressionally Mandated Projects
EMPACT
Facilities Infrastructure and Operations
Homeland Security
Lead
Legal Services
Management Services and Stewardship
Nitrogen Oxides
FY2001
Enacted
$1,264.2
$185,647.6
$4,062.3
$21,903.7
$1,797.9
$20,363.1
$0.0
$329.5
$5,145.8
$3.572.1
$1.379.4
FY 2002
.Enacted
$0.0
$199,966.5
$4,258.4
$14,492.5
$0.0
$18,978.9
$1.120.5
$342.2
$5,487.3
$4,395.3
$1.325.5
FY 2003
Request
$0.0
$193,466.5
$4.025.1
$0.0
$0.0
$19,198.2
$0.0
$339.6
$5,973.1
$4,568.7
$1,399.0
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($6,500.0)
($233,3)
($14,492.5)
$0.0
$219.3
($1,120.5)
($2-6)
$485.8
$173.4
$73.5
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Ozone
Particulate Matter
Paniculate Matter Research
Regional Haze
Regional Management
Sulfur Dioxide
Tropospheric Ozone Research
FY 2001
Enacted
$68,106.3
$55,617.3
$65,457.3
$2,305.9
$252.6
$12,158,1
$6,551.0
FY 2002
Enacted
$68,455.1
$52,302.7
$65,468.2
$2,535.9
$349.5
$12,318.5
$6,514.8
FY2003
Request
$77,498.8
$62,624.3
$66,662.0
$2,408.1
$310.1
$13,624.7
$6,758.1
FY 2003 Req.
v. FY 2002 Ena.
$9,043.7
$10,321.6
$1,193.8
($127.8)
($39.4)
$1,306.2
$243.3
 2003 Request

       Under the Clean. Air Act, 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 (SOa), nitrogen dioxide
(NCh), and lead. 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 "primary" standards to protect human health, and "secondary" standards
to  protect the  environment  (e.g.,  crops, vegetation,  wildlife,  visibility,  buildings,  and
monuments).

       States and Tribes must develop and carry out strategies and measures to attain the
NAAQSs.  These strategies and measures are included in State Implementation Plans (SIPs) and
Tribal Implementation Plans (TIPs).  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 lands.  The Clean Air Act also
requires states to develop programs to  protect and  improve visibility in national parks and
wilderness areas. In addition, EPA establishes, implements, and enforces emissions reduction
programs  for source categories, such as motor vehicles and fuels, that are most effectively
addressed at the national level.

       In  July 1997, EPA published revised, more protective NAAQSs 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 that the Supreme Court reversed.

       EPA currently is evaluating the Supreme Court opinion, the opinions of the D.C. Circuit,
and several legislative provisions to determine how to  proceed. The Agency continues to believe
that the revised standards are necessary to protect human health, and nothing in the decisions of
the Courts changes  that belief.  EPA is resolving  technical issues and developing guidance for
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states and Tribes to begin implementing the 8-hour ozone standard, incorporating new innovative
approaches to achieve early reductions that will help new areas attain the standard sooner.

       The D.C. Circuit Court's 1999 decision did not affect the ozone and PM NAAQSs that
were in place before July 1997.  These NAAQS have not yet been met in a number of areas.  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 ozone standard was established. EPA will
continue to complete mid-course reviews for serious and severe areas under the  1-hour standard,
review data for reclassification to attainment, review attainment  date extensions, and provide
oversight and guidance for other SIP revisions.

Ozone

       Ozone can impair normal functioning of the lungs hi healthy people, as well as in those
with respiratory  problems. Relatively low levels 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. Animal
studies suggest that repeated occurrence of this type of inflammation over a long time period
(e.g.,  months, years, a  lifetime), may permanently scar  lung tissue, causing  reduced lung
elasticity, permanent loss of lung function, and a lower quality of life. More people are exposed
to unhealthful levels of ozone than to any other air pollutant.  EPA estimates that meeting the
new 8-hour ozone  standard  will  protect 13  million more children living  in  areas  where
unhealthful levels of smog  occur than under the previous standard.

       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.

Working with States and Tribes

       Unlike most other pollutants, ozone is not emitted directly into the air by  specific sources,
but is  created by sunlight acting on nitrogen  oxides  (NOX) and volatile organic compounds
(VOCs).   Some  common  sources that emit  one or more of these pollutants  include:  motor
vehicles,   power plants,   chemical  manufacturing  facilities,   petroleum   refineries,  and
printing/coating operations.  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 the ability  of states to attain the NAAQS through traditional SIP
programs. To address this persistent and widespread problem, EPA will effect compliance under
the NOX SIP Call, implementing control measures through NOX  SIPs or Federal Implementation
Plans (F.IPs).  The Agency expects this program to reduce total summertime emissions of NOX
by about 25 percent or 1.1 million tons beginning in FY 2004 in the affected 22 states and the
District of Columbia.

       EPA will administer the national program to implement the 1-hour NAAQS for ozone,
providing oversight, coordinating among Regions and with states and Tribes to  provide national
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consistency, and developing policy and guidance to resolve major issues.  States will continue to
implement the 1-hour ozone standards.  For nonattainment areas classified as "severe," states
must conduct mid-course reviews to determine if the areas are on track to achieve attainment and
revise control strategies if the area is not expected  to achieve necessary emission reductions.
EPA will review air quality  data for areas classified "serious" and "severe" to  determine  if
"bump-ups" to a higher classification are  necessary and work with states, local agencies, and
Tribes to identify additional control measures, as necessary.

       EPA will continue technical support for the 1-hour ozone NAAQS program.  The Agency
will analyze 10-year trends in ozone  concentrations  for major U.S. cities, with adjustments for
year-to-year variations in  meteorological conditions. EPA will complete example applications
for "mid-course review" of 1 -hour ozone plans based on model applications, trends analyses, and
other factors that can be  used as part of a weight-of-evidence for demonstrating progress in
attainment during  FY 2004.   In addition, the Agency will develop an example application
demonstrating implementation modeling techniques to show attainment  of the 8-hour ozone
NAAQS.

       EPA is working with states and Tribes on the development of implementation rules and
guidance  for the 8-hour  ozone standard.   EPA has begun a program to foster innovative
approaches and new programs such  as  cool cities,  pollution prevention efforts, smart growth
options, and an ozone flex policy for the  current 1-hour ozone standard.   These programs are
aimed at early voluntary reductions that can assist in  the transition from the 1-hour to the 8-hour
ozone standard, particularly for those  areas that are just meeting the 1-hour standard and may not
be meeting the 8-hour  standard.  By  implementing early  reductions through some of these
innovative programs,  areas may  be  able  to  attain  the  8-hour standard prior to  designations
occurring.  The Agency will continue  to work with states, local governments, and Tribes to adapt
these approaches to specific urban areas.

       Section 183(e) of the Clean Air Act requires EPA to list those categories of consumer or
commercial products that the Administrator determines, based on a study, account for at least 80
percent of VOC emissions,  on  a  reactivity-adjusted basis, from consumer or  commercial
products in areas that violate the NAAQS for ozone.  The Act requires EPA to divide the list into
four groups, establishing  priorities for regulation based on specific  factors listed in section
183(e).  Every two years after promulgating the list,  EPA must regulate one group of categories
until all  four groups are regulated.    On  March 23, 1995, EPA published the section  183(e)
product category list and schedule  for regulation  that established the  four  groups  and the
deadlines for their regulation.  Groups  I through III regulations were due in  March of 1997,
1999, and 2001, respectively, and Group IV regulations are due March, 2003.

       On March 18, 1999, EPA published a revised schedule for regulation that moved some
categories to later groups.  To date, the Agency has regulated only the categories in Group I.  In
July 2001, the Sierra Club filed a total of seven complaints  in the D.C. District Court alleging
failure of EPA to meet statutory deadlines in the Clean Air Act, including the requirements of
section  183(e)(3)(A).    Group II includes flexible  package printing  materials and Group III
includes aerosol spray  paints, industrial  cleaning solvents,  flatwood paneling coatings, and
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lithographic printing materials.  Although there is  no consent agreement on addressing this
requirement, EPA will focus efforts on developing these proposed rules in FY 2003.

       In FY  2003, EPA will continue to assess the science  of reactivity of VOCs  in the
atmosphere and to develop a comprehensive policy that addresses the impact of reactivity on
ozone, PM, and toxics emission reduction programs. EPA will provide guidance on SIP program
requirements and will continue to work with the Federal Aviation  Administration on airport
emissions and  with other Federal agencies on applicability of the general conformity rule. EPA
also will review 1-hour data  for redesignation to attainment and work with areas eligible for
redesignation to  develop maintenance plans. The Agency will continue to work with Tribes,
completing VOC and NOx emission inventories, developing TIP requirements,  and addressing
issues unique to Tribal lands.

       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 compounds, ozone, and both surface and upper air meteorological conditions.  National
and local analyses of the 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 also
will work to improve emissions testing and monitoring of NOX emissions required in SIPs,

       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 SIPs during FY
2002 and are  expected to continue into FY 2003 and beyond.  In  addition, the use of other
modeling systems (i.e., REMSAD and Models-3) will continue in support of Regional  Planning
Organizations  (RPOs) for addressing regional haze  and for PMa.s.  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, Tribes, and RPOs will work collaboratively  in
developing the capability to  use these  models, evaluate  their accuracy and applicability  to
complex air quality issues, test and analyze emission control alternatives,  as well  as share
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 focus extensively on public outreach and information to provide high
quality information for general and technical audiences to facilitate public  understanding,  so that
individuals can make choices about activities that might decrease 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.

       Development of an integrated, multi-pollutant emissions model,  the  Sparse Matrix
Operator Kernel Emissions (SMOKE), will be completed in FY 2003. The SMOKE model is an
emissions model that prepares an emission inventory for subsequent air quality modeling by
providing the  specific emission  inputs needed for other modeling.  The SMOKE model runs
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 mobile and biogenics emissions models to produce  the  required inputs  for these emission
 inventories.  EPA is  updating these emission models to use new data sets.  These data sets
 include land use and census data. The Agency is working to improve these data sets by getting
 more updated data (e.g., 2000 census data), and looking for additional land use categories that
 would better reflect the spatial distribution of emission sources within a county.

       Applications of a "one-atmosphere" modeling system (Models-3/CMAQ) also  will be
 completed for assessing the impact of new national rules  and policy assessments (e.g., multi-
 pollutant, non-road, PM NAAQS Regulatory Impact Assessment, toxics deposition, U.S./Canada
 transboundary issues) on multiple pollutants and their species components.  Model outputs will
 be used to assess the impact of the rules on attainment of standards, support for regulatory/legal
 actions, and benefits analyses.  This activity will  be supported through continued partnerships
 with the Office of Research and Development (ORD) in operating a Center for Community
 Modeling to support, maintain, and enhance Models-3/CMAQ within the scientific community.

       In FY 2003, linkages between global and regional air quality  and climate change would
 be assessed using hemispheric and regional scale modeling tools.  The impact of emissions
 changes on the global and regional distribution of ozone and PM will be  estimated.  Control
 strategies will be modeled and recommendations made for reducing the impacts of foreign and
 domestic emissions increases/reductions on the intercontinental transport of these pollutants and
 their implications for regional air quality and global climate change.

 Mobile Source Ozone Controls

       To address the need for further reductions  in motor vehicle emissions to help 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 model 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 2 million tons per year by calendar
 year 2020 and nearly 3 million tons annually  by calendar year 2030.  In FY 2003, EPA will
 continue the implementation of the Tier II regulations for LDVs, LDTs, and medium-duty
 passenger vehicles. This will allow manufacturers to certify they meet Tier II standards under
 early opt-in provisions for Tier II. In addition, EPA will continue work to implement the new
 gasoline sulfur standards.

       In FY 2001, the Agency promulgated new standards for heavy-duty vehicles and engines.
 Before these standards were promulgated, gasoline trucks in FY 1997  and reaffirmed in FY 2000
 were required to be 78 percent cleaner and diesel trucks to be more than 40 percent cleaner than
 today's models. These requirements were designed to reduce NOx emissions by 2.4 million tons
 annually when the program is fully implemented in calendar year 2030 and thereafter. The new
 2001 standards established a comprehensive national program that will regulate trucks and buses
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and diesel fuel as a single system with the new emission standards taking effect in model year
2007. Under this program, new  trucks  and buses 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 2003, the Agency will continue work to implement the  new 2007 heavy-duty
highway engine and diesel sulfur requirements.   This  includes continued assessment of the
development of engine after-treatment technology and its sensitivity to diesel fuel sulfur levels.
In addition, EPA will continue work on  a rulemaking to establish new standards for heavy-duty
non-road,  land-based diesel engines and vehicles, potentially including new sulfur requirements
for non-road diesel fuel.   Additionally in FY 2003, 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.

       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 2003,  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.  EPA will  continue testing of heavy-
duty diesel engines to support implementation of 2007 requirements, non-road diesel engine
rulemaking activities, and development of Portable Emission Measurement Systems (PEMS). 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 compliance tests on in-use LDVs and LDTs.  NVFEL will also conduct an
approximately equivalent  amount of testing of LDV and heavy-duty engines.

       To ensure achievement of the goals of the Clean Air Act through Tier II and the 2004 and
2007 Heavy-Duty Engine  Regulations, EPA will require an investment of $14 million to upgrade
EPA's vehicle and engine testing  capabilities at the NVFEL.  This funding will provide essential
laboratory equipment  to perform new, highly sophisticated, emissions testing on  vehicles and
engines to ensure compliance with these  more stringent regulations.

       The NVFEL provides critical support to  EPA, the states,  the fuels  industry, and the
automobile industry by testing vehicles and engines for compliance with  Federal  clean  air
standards.  Tests are conducted on motor vehicles, heavy-duty  engines,  non-road  engines, and
fuels to: (1) certify and/or confirm that vehicles and engines meet Federal air emissions and fuel
economy standards; (2) ensure engines  comply with in-use requirements; and (3)  ensure fuels,
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fuel additives, and exhaust compounds meet Federal standards.  By FY 2003 a dramatic change
in the type and amount of testing will be required at the NVFEL  as  a result of new Federal
regulatory standards (Tier II and Heavy-Duty Engine) becoming effective and advancements in
vehicle emission control technologies.

       An  investment  of $14 million in laboratory modernization will address  three critical
areas:

•      Tier 2 Emission Standards Compliance Testing - $8.5 million for emission measurement
       system upgrades  required to fully implement and  enforce the new Tier 2  emission
       standards and test procedures for all passenger cars and light trucks beginning with the
       2004 model year.  This includes the capability to compliance test new vehicle designs at
       extremely  low emission levels prior to issuing a certificate allowing production and sale
       of compliant vehicles. It also provides the capability to confirm in-use vehicle or engine
       emissions  performance by conducting in-use vehicle testing programs for enforcement
       purposes.

•      Heavy-Duty Engine Emission Standards Testing - $3.0 million for emission measurement
       system upgrades required to implement and enforce the model year 2004 and 2007 Diesel
       Engine Standards for on-highway, heavy-duty engines.  This includes the capability to
       measure NOx emissions at extremely low levels in order to compliance Jest new model
       year 2004  heavy-duty -engine designs. In addition, the upgrade includes the capability to
       measure PM emissions at extremely low levels in order to compliance test new model
       year 2007 heavy-duty engine designs prior to issuing a certificate allowing production
       and sale of compliant vehicles.  Although the low PM standards are not required until the
       2007 model year, EPA expects some manufacturers will introduce clean engines sooner
       to generate early reduction credits. The system upgrades also will provide the capability
       to confirm in-use engine performance by carrying out in-use  engine testing programs for
       enforcement purposes.

•      Next Generation Emission Measurement Systems Testing - $2.5 million for digital and
       computer-based emission measurement system upgrades required to accurately measure
       the next generation of emission control systems.

       The ability to perform these tests will ensure fulfillment of the goals of the Clean Air Act
to protect the health of all Americans.  EPA calculates that when fully implemented in  2030, the
final Tier II rule will prevent as many as 4,300 deaths, more than 10,000 cases of chronic and
acute bronchitis, and tens of thousands of respiratory problems a year.  The Tier II program will
allow 120  million Americans now living in areas with dangerous pollution levels  to  enjoy
cleaner air.

       The emission reductions resulting from the Heavy-Duty Engine  Regulations will prevent
as many  as 8,300  premature deaths, more than 9,500 hospitalizations, and 1.5 million work days
lost. Diesel engines emit large amounts of NOX and PM, both of which contribute to serious
public  health problems  in  the U.S.,  including  lung cancer,  aggravation of respiratory and
cardiovascular  disease, aggravation of existing asthma, acute respiratory symptoms, chronic
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bronchitis, and decreased lung function. With both ozone and PM, children and the elderly are
most at risk.

      In FY 2002, EPA plans to promulgate regulations addressing emissions from a range of
unregulated  non-road  sources, including industrial  spark-ignition engines (e.g.,  forklifts and
generators),  recreational vehicles,  and recreational marine engines.  These  standards will
significantly reduce emissions, carbon monoxide, toxics, and other emissions that contribute to
ozone formation.  In FY 2003, the Agency will start work to implement these new standards.

      EPA will continue implementing  other mobile  source programs  addressing  ozone
precursor emissions.  The  first two phases of emission standards for locomotives, which will
result in more than a 60 percent reduction in locomotive NOX emissions, were implemented in
calendar years 2000 and 2002, respectively. The next phase of locomotive standards will take
effect in calendar year 2005,  In FY 2003, the Agency will continue to evaluate certification test
data to ensure locomotive designs comply with standards.

      Another recent program that EPA will continue implementing in FY 2003 is the Phase 2
standards  for small  spark-ignition handheld  engines  (e.g.,  trimmers, brush  cutters,  and
chainsaws).  The phase in schedule of these new standards  began  with the 2002 model year.
This program will reduce hydrocarbon (HC)  and NOX emissions by  70  percent.  This is
equivalent to an annual reduction of 500,000 tons of HC and NOX  by the calendar year 2027.
This reduction is accompanied by an overall reduction in fuel consumption.

      Using an existing portable emission measurement system that was developed by EPA for
measuring real  world  in-use emissions -  the Real-time On-board Vehicle Emission Reporter
(ROVER) — the Agency began  in FY 2001 to test trucks  on-highway for compliance with
emission standards.   EPA screened 41 separate engine families for high NOX emissions. This
program was extended in FY 2002 and expanded to include state participation. In FY 2003, EPA
will continue the program and will obtain the participation of additional states interested in
monitoring heavy-duty diesel emissions.

      An  important element  of the  Agency's work  on controlling emissions is to ensure
emission data is obtained  from the  different categories of mobile  sources.  In FY 2000, the
Agency  increased its focus on the development of a portable emission measurement system that
will allow the Agency to acquire in-use emission data in a cost-effective manner.  In FY 2001-
2002, EPA refined its  in-use NOX  measurement capability.  In FY 2003, EPA will  continue
further testing and development of the  complete system to include PM and toxics measurement
capability. The Agency plans to continue using portable systems to characterize in-use emissions
from light-duty vehicles, heavy-duty highway vehicles, and non-road equipment.  The  newly
acquired emission data will  enhance  EPA's emission models.  In the long-term,  portable
sampling systems will find widespread application by EPA, states, and industry for compliance
and in-use emission monitoring purposes.

      The Agency also will emphasize improvements in its transportation emission models in
FY 2003.  In FY 2002, EPA developed an architectural framework for a new generation model
that will greatly improve the Agency's ability to support the development of emission control
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programs, as well as providing support to the states in their determination of program needs to
meet  air quality  standards.  The  Agency will  continue  developing  the new  transportation
emission model in FY 2003, as well as 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 that allows for
assessment and action on those vehicles and engines that 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.

       In FY 2002, 34 states are operating I/M programs. EPA will continue providing technical
and programmatic guidance  to states and local agencies for implementing  these programs.
Beginning in FY  2002,  EPA is assisting  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 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 substantially reduce vehicle emissions of
ozone-forming and toxic pollutants and it is estimated to reduce VOC emissions nationally by 27
percent, toxic emissions by  22 percent, and NOX emissions by 6.8 percent. This is the equivalent
of taking 16 million vehicles off the road. EPA will continue  to address issues associated with
the use of oxygenates (e.g.,  MTBE and ethanol) in RFG.  EPA will process approximately
100,000 fuel quality reports and review 156 fuel surveys with 17,000 samples.
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       The President's National Energy  Policy (NEP) directs EPA to study opportunities to
maintain or improve environmental benefits of state and local "boutique" clean fuel programs. A
total of 11 states  have banned  and 12 more are considering banning MTBE as a gasoline
additive.  This threatens to encourage proliferation of "boutique" fuel requirements, which, in
times of disruption, can create fuel production and distribution system logistical problems.  EPA
is currently evaluating options to fulfill this NEP directive,  while exploring ways to increase
flexibility in the fuels production and distribution system.

       The mobile source compliance program will oversee more than 225 original equipment
manufacturers to ensure that vehicles and engines (both on-highway and non-road) will meet the
applicable emission standards throughout their useful life.  The program issues nearly 2,200
certificates of conformity annually.  Compliance is audited and ensured through pre-production
certification and confirmatory testing, assembly line testing, various special audit programs, and
in-use  testing and recall.   For light-duty vehicles and trucks, there  also is a fuel economy
compliance program, which in FY 2003 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 2003, offsetting costs of the
certification, recall, selective enforcement audit, and fuel economy programs.  This fee program
will be updated through a rulemaking that will eventually offset the  entire cost of the above
compliance programs.

       The FY 2003 model year  will  be the third  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 are required to 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 that they can be detected only with an
electron microscope.  The PM NAAQS were revised in 1997  in part to separately address both
the  coarse and fine fractions of inhalable particles. Because particles originate from a variety of
mobile and stationary  sources (diesel trucks, wood stoves, 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 SOa, VOCs, and NOX, react to form fine particles.
       Both coarse and fine 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-term periods (such as a day) and long-term periods (a year or more). 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
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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.

       In FY 2002, as part of the regular NAAQS reviews required by the Clean Air Act, 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 (CAS AC) and
made available for public comment.   Following completion of these documents, EPA  will
propose whether to retain or revise the PM NAAQS.

       In FY 2003,  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 provide guidance that integrates any future implementation of
PM standards with implementation of the regional haze rule.

       EPA and  states will  expand outreach efforts  to promote public  awareness of the Air
Quality Index.  The Agency will  develop a strategy for transition from the old. PMio standard to
the new PMij standard and a series of guidance documents for implementing the new standards.
These guidelines will  resolve technical issues and establish early reduction strategies similar to
those used for ozone implementation.

       EPA will work with partners to develop improved emission factors (including gathering
improved activity data bases and utilization of GIS and satellite remote sensing where possible)
for key point source,  area source combustion and fugitive dust source  categories and  global
emission events.  EPA will coordinate with stakeholders on the development of a real time data
system  to  catalogue  wildland  fire events,  improve emission  models for these  fires,  and
demonstrate ways to reduce agricultural emissions.  The Agency also will respond to inventory
needs identified by the National Academy of Sciences review of CAFO ammonia emissions.

       EPA is  better  characterizing PM2.5 concentrations, sources and  emissions 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 PMa.s particle
emissions.  This compliance network was fully operational as of December 31, 1999. EPA also
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 will promote the use of continuous PM monitoring and improved PM test methods.  States and
 Tribes will use the air quality data and chemical speciation data to identify PM sources and "hot
 spots" for purposes of developing future SlPs and TIPs.  As recommended by NAS, EPA is
 discussing with the Clean Air Scientific Advisory Committee ways to increase the usefulness of
 the resultant monitoring data to PM health researchers. Monitoring data for PMio will continue
 to be used to characterize emission sources, evaluate air quality models, and contribute to  the
 regular scientific review of the standard.

        EPA will carry out statistical analysis and source  apportionment techniques that provide
 understanding of the spatial and temporal distribution of PMa.s and its constituents.   The main
 focus of the analysis will  be to support decisions and development of decision tools on PMa.s
 nonattainment boundaries. In addition, enhancement of real time air quality forecasting for PM
 based on applications of numerical grid models will be foster.ed and a regular forecast program
 implemented for a limited area. Additionally, web-based analysis tools on EPA's AMTIC Web
 site will be implemented.  These tools will provide routine plots and tables based on user input.
 This will add to the analytical tools (e.g.  PMF, UNMIX)  that are now being used to analyze
 PM2.5 data.

        To  ensure  the source and ambient monitoring measurements are credible,  EPA will
 continue to develop and conduct quality assurance protocols.  Currently efforts are focused on
 the quality assurance of the ambient  PM2.5  monitoring network because  of its  recent
 establishment.   In FY 2002 and beyond, EPA also will improve source testing and monitoring
 methods for PM 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.

        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 trucks 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 a
 fleet of trucks and buses with PM emission levels that are 90 percent below those of their 2000
 model year counterparts.  By 2030, the program will reduce annual emissions of PM by 109,000
 tons. In FY 2003, 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 continue work on new  standards for heavy-duty non-road, land-based diesel
 engines and vehicles, including potentially new diesel fuel sulfur requirements.

        In FY 2003, 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
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partner  with states,  EPA Regional offices, local governments, private  fleets, and industry
members.

       The  President's  National Energy  Policy  directs  EPA  and  the  Department  of
Transportation (DOT) to develop a program to address the concern of idling trucks at truck stops
and other rest areas.   To address this directive, EPA will develop partnership agreements with
truck fleets, the truck stop industry, manufacturers of idle control technologies, and local and
state  governments to create incentives for implementation of idle control technologies, and
remove barriers that  truckers have identified. EPA  also will create interstate corridor projects
where truckers can use alternatives such as truck stop electrification at their regular stop-overs.
Idling strategies will  be used in conjunction with other programs in EPA's Freight Management
Partnership initiative  to get the trucking industry to achieve substantial fuel savings and emission
reductions.  The long-term emission reductions from these demonstration projects alone will
result in fewer cases of premature death, hospitalization, and respiratory problems.

       In FY 2003, EPA will continue implementing other mobile source programs addressing
PM emissions.  The emission standards  for locomotives,  which will result in more than 40
percent reduction in  PM, began in 2000 (Tier 0).  Tier 1 standards took effect in FY 2002 and
Tier 2 standards will take effect in FY 2005.  In FY  2003, the Agency will continue to evaluate
certification test data to insure locomotive  designs comply with standards.

       As discussed  earlier for ozone, an important element of the Agency's work in controlling
emissions is to ensure the accuracy of emission data from the different categories  of mobile
sources.  In 2000, the  Agency increased its focus on development of a portable emission
measurement system that will allow the  Agency to acquire  in-use emission  data in a cost-
effective manner. In FY 2001-2002, EPA refined its in-use NOX measurement capability.  In FY
2003, EPA will continue the testing and development of this system to include PM and toxics
measurement  capability.   The  Agency  plans  to  continue  using 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 EPA models is another area that the Agency will be addressing  in FY  2003.
In FY 2001, EPA started the development of an architectural framework for a new generation
model that will greatly improve the Agency's ability  to support the development of emission
control  programs, as well as providing support to the states in their determination of program
needs to meet air  quality standards.   The Agency will  continue the  development of the new
model in FY 2003. The Agency also 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 PM.

       In FY 2002, EPA will complete development of a PM measuring system for use with its
portable emission monitoring systems described above.  In FY 2003, the Agency will put the
new technology to use in monitoring and enforcing compliance with diesel PM standards.
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Visibility

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

       EPA promulgated a final regional haze rule in FY 1999.  Because of regional variations
in natural conditions that 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.
EPA is working closely with the  Regional Planning Organizations (RPOs)  to  develop  the
technical basis for future policy decisions and tailor programs that take into account the varying
conditions in the different geographical areas.

       In FY 2001, EPA proposed Best Available Retrofit Technology (BART) rules that would
require certain larger, older utilities and other industrial plants to install BART as part of a state's
strategy for improving visibility.   The proposal provides guidelines to  states in selecting the
plants where BART should be applied and determining the type of controls to be installed. The
proposal will undergo a public comment period arid should be finalized in FY 2002.  In FY 2003,
EPA will be working closely with RPOs to develop plans for implementing this rule.

       In FY 2002,  EPA is releasing two guidance documents  to assist states and Tribes in
implementing the regional haze rule. The Tracking  Progress guidance document is intended to
provide a consistent way to evaluate changes in visibility impairment in Class I areas under the
regional haze program.  The purpose of the Natural  Visibility guidance document is to provide
guidance to the states and Tribes in implementing the regional haze program.

       In FY 2003,  the EPA would continue providing funding to the National Park Service
(NPS)  to run the IMPROVE network and supplementary state  and tribal protocol (PMb.s
speciation) sites. EPA will also continue its coordination role with states, Tribes and the NPS to
facilitate better visibility monitoring.

       EPA will continue  to support RPOs concerned with regional haze and  PM impacts
through the set up  and application of regional scale models  (e.g., CMAQ & REMSAD).
Included in this activity will be preparation of meteorological models and data bases for calendar
year 1999-2001,  preparation of emissions inputs to models and development  of emissions
projections, and evaluation of model accuracy based on the latest years  of  speciated PM data.
These model applications will serve as a preliminary  basis  to assess regional emission control
strategies necessary for PMzs SIPs and regional haze goals.  Training  in the use of these models
will be continued on a basis of need.
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Implementation of NAAQS and Visibility^ Reguirements

       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 NOX and VOCs, emitted by the same types of sources.
There are  similar 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 with NAAQS s.   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  work-hours needed for each pollutant, given the
competing  needs  of measuring the  other pollutants.   As states,  Tribes, or local  agencies
determine the need to add monitors or change location of monitors in the network, they can 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,  m  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 innovative strategies and control programs that
•employ  regulatory flexibility to minimize economic impacts  on businesses to  the  greatest
possible degree consistent with protecting human health and the environment. 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

       CO is  a  colorless, odorless gas that enters  the  bloodstream and interferes  with the
delivery of oxygen to the body's organs and tissues. The health threat from exposure to ambient
concentrations of CO  is  most  serious for  those who  suffer form cardiovascular  disease.
Exposure to elevated CO levels is associated with visual impairment, reduced work capacity,
reduced manual dexterity, decreased learning ability, and difficulty in performing complex tasks.

       In FY 2001,  the  NAS began a two-year  study for EPA of CO episodes associated with
meteorological and topographical problem areas and strategies for these nonattainment areas.
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       In FY 2002, EPA will issue new standards for a range of unregulated, non-road sources,
including 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.   These new emission  standards  will reduce  emissions  from  engines  that
potentially expose people to high concentrations of harmful exhaust pollutants.

       EPA currently is reviewing the NAAQS for CO and has  completed the CO criteria
document.  The Agency anticipates completing the Staff Paper in FY 2002,  After taking into
account Clean Air Science Advisory Committee review and  public comment, EPA expects to
propose a decision whether to retain or revise the standards in FY 2003 and issue a final decision
in FY 2004.

       In FY 2003,  EPA  will  continue to assist  states,  Tribes,  and local   agencies  in
implementing  strategies to reduce CO, review data for redesignations to attainment, and assist
states in developing plans,  as necessary, to maintain compliance with CO standards. As a result
of these efforts, EPA expects an  additional four areas to attain the NAAQS for CO in FY 2003.

Sulfur Dioxide

       SO2 belongs to the family of gases called sulfur oxides (SOX).  These gases are formed
when fuels (mainly coal and oil) containing sulfur are burned and during  metal  smelting and
other industrial  processes.   The  major  health  concerns  associated  with exposure to high
concentrations of S02 include effects on breathing, respiratory illness, alterations in pulmonary
defenses, and aggravation  of existing cardiovascular disease.  Children, the elderly, and  people
with asthma, cardiovascular disease, or chronic lung disease (such as bronchitis or emphysema)
are  most susceptible  to adverse  health  effects associated  with exposure to SO2.    In  the
atmosphere, SOi can react to form fine particles that may aggravate respiratory disease and lead
to premature death.  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,

       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 D.C.  Circuit Court  of Appeals has remanded for further explanation EPA's most
recent decision not to revise the  SOi NAAQS for a better explanation of why the Agency did not
set a 5-minute SOa 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.   Since the Supreme Court decision remanded the case  back to  the D.C.  Circuit
Court for further proceedings, EPA's response to the remand on the SOi NAAQS will await a
decision from  that court. In the same notice, EPA provided new 5-minute data and analyses of
that  data.  In FY 2002, EPA  will collect 5-minute  monitoring data  from areas selected in
consultation with regions/states/locals and the American Lung Association. This data will be
analyzed in FY 2003. Following analysis of the data, EPA will make a determination whether to
finalize the intervention level program previously proposed. 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 2003,
EPA will increase efforts to reduce the more pervasive sulfur oxide emissions through the acid
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rain, PM, and regional haze programs that are described under those objectives.  These efforts
will result in nine additional areas coming into compliance with the SOa NAAQS in FY 2003.

Nitrogen Dioxide

       NOi 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.   NOa is  the  most
widespread and commonly  found nitrogen oxide and is a matter of public health concern.  With
regard to human health effects, NOa can  cause  respiratory  symptoms  such as coughing,
wheezing, and shortness of breath in children and adults with respiratory disease, such as asthma.
Even short exposures to NO2  affect lung function.  In children,  repeated short-term exposures
can increase the risk of respiratory illness.  Animal studies suggest that long-term exposure to
lower  levels  of  NOa 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 PM. Nitrogen oxides react with VOCs in the presence of sunlight to form srnog.  NOa can
be converted into fine nitrate aerosols, a constituent of fine particles  (PMa.s). 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 NOa  by 2005. Over the next several years,  the
Agency will continue to work to maintain air at  safe levels of NOa. The Agency also will review
the standard to assure that it continues to protect human health and welfare.
       Because NOa is a tropospheric ozone precursor, control of NOa is a way to reduce ozone.
As described in the preceding ozone section, efforts are underway 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 paniculate matter.

Lead

       Exposure to lead mainly occurs through inhalation of air and  ingestion of lead found in
dust, food, paint, water, or soil. 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 in ambient air
has been greatly reduced. Today, smelters and battery plants are the major sources of lead in the
air.   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
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the most effective way to prevent airborne lead.  Two additional areas are expected to come into
compliance with the NAAQS in FY 2003.

Cross-Pollutant Operating Permits and New Source Review (NSR).

       Following the promulgation of the  Part 70 operating permit rules, EPA will provide
technical support to Regions, states, Tribes and local agencies on permit program revisions.  By
the end of FY 2003, EPA intends, with assistance from state and local permitting authorities, to
complete the first round of Part 70 permits. The Agency will continue to monitor the permitting
program implementation efforts.  The Agency will continue and expand training and technical
support efforts  to  ensure smooth  incorporation  into operating permits  of the  Compliance
Assurance Monitoring, Maximum Achievable Control Technology (MACT) standards, and other
rules that have recently become effective.  The Agency also will continue to be involved in and
expand, as needed, efforts to reform and streamline permitting programs and train citizens to
effectively review Title V and new source review (NSR) permits.

       In FY 2003, the RACT/BACT/LAER Clearinghouse (RBLC) will continue to maintain,
operate, and enter new information into its data base. In FY 2002 the RBLC will complete data
collection and entry for missing  permits  issued in  the last 10 years and  implement most
improvements identified through RBLC public workshops. The RBLC also will implement an
on-line tutorial, establish an interface with EPA's public access GIS data base  (to relate  the
proximity of permitted sources to  Class I and other sensitive areas), and complete its first
technical bulletins on new and emerging air pollution technologies in FY 2002,  New initiatives
are planned to be completed in FY 2003 to implement  more complex system improvements,
establish an emerging technology data base, accommodate final  NSR Reform rules, and
interconnect the RBLC Web data base with other EPA data bases that contain facility data.

       The regulatory modeling program will  be continued.  This includes implementation of
new modeling systems (e.g., AERMOD, PRIME, CALPUFF) to support NSR/PSD (Prevention
of Significant Deterioration) applications. New standardized methods for evaluation of models
and for QA/QC of  model applications will be developed.  Also, support and outreach to the air
regulatory modeling- community .through Internet websites, Model Clearinghouse, training, and
workshops will continue.

Homeland Security

       In FY 2002, resources will be used to procure equipment that will allow EPA to do air
monitoring in emergency situations.  Resources will allow EPA to develop and maintain  the
capability to quickly provide relevant air pollution monitoring and health effects information in
response to a terrorist incident.  EPA equipment would  supplement permanent state  and local
monitoring networks providing more comprehensive, site-specific information.

Research

       EPA's NAAQS-related  research program  has a  two-fold purpose: (1) to support  the
periodic review and revision as needed of the NAAQS (i.e., risk  assessment, exposure, and
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effects research);  and (2) to support implementation and attainment  of the NAAQS (i.e.,
atmospheric chemistry, air quality models, and risk management research). The FY 2003 request
focuses on research to address the two NAAQS pollutants that are believed to pose the greatest
risk to human health: tropospheric ozone and paniculate matter (PM),

Tropospherit Ozone and Related NAAQS

       Continuing research  efforts in FY 2003 will develop  measurement  methods and
observations-based assessments to  provide a reliable means  of determining state  and local
emissions reductions.   EPA will develop  techniques to measure  ozone precursors and their
transformation during meteorological  transport.   Ongoing  regional field  studies  have been
developing observation-based methods (OBM) to complement emissions-based, physical theory
modeling (EBM).  In FY 2003 methods to  combine EBM and OBM techniques for developing
ozone control strategies will be demonstrated, so that the Agency, states, Tribes, and  the public
can accurately and reliably predict ambient ozone concentrations.

       In the area of atmospheric  chemistry and modeling, EPA will examine the causes of
NAAQS  non-attainment  (e.g.,  chemical  constituents, sources  and  source  regions*  and
meteorological variables).  Research will also develop data  about key missing features of the
atmospheric chemistry of ozone formation and use these data to improve atmospheric chemistry
models.  Developing, evaluating, and applying atmospheric models for projecting the impacts of
alternative control strategies will also continue to be a priority in FY 2003.

       Research to improve  the accuracy of emissions estimates from biogenic (i.e., naturally
occurring) and mobile  sources will continue in FY  2003.   Biogenic  emissions research will
develop  improved emissions factors for compounds that are highly reactive with ozone and
hydroxide  because current inventories  may under  represent  these  emissions.      Field
measurements will also be conducted to validate estimates of oxygenated  volatile organic
compound (OVOC) emissions from agricultural, arid land, and forest OVOC sources. Activity
(such as land use) algorithms that influence  these estimates will  be studied to enhance the reality
and accuracy of the estimates.  Work will also be  conducted to help determine how emissions
change between  seasons.  Accurate estimates of emissions from biogenic sources are critical in
estimating background oxidant potential and formulating cost-effective anthropogenic pollution
control strategies.

       Mobile emissions research will further the development and validation of the Mobile
Emissions Assessment System for Urban and Regional Evaluation (MEASURE), which provides
more accurate emissions estimates  of CO, NOX, and  VOCs - ozone precursors.v MEASURE
takes into account how a vehicle's mode of operation, such as acceleration, influences emissions.
Studies will be performed  to enhance MEASURE'S capability to estimate emissions from the
Light Truck fleet (LDGT 1's and LDGT 2's) because the data used for these sources  is limited.
In addition, efforts will continue to integrate the MEASURE model into the MOBILE6 model
now used by states to develop estimates for ozone SIPs. The data generated from this research
will help federal, state, Tribal, and local regulators develop and evaluate attainment strategies.
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       Research activities  related to NAAQS pollutants other than tropospheric ozone will
include the development of an External Review Draft for the NOx AQCD as part of the periodic
NAAQS review of this pollutant.

Paniculate Matter Research

       EPA's particulate matter research portfolio is aligned with  the  ten priority topics
identified by the National Academy of Sciences (NAS) in a  series of reports, the most recent
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, customers, and
interested stakeholders with the opportunity to evaluate an extensive body of research results.
The NAS recommendations describe a research program that  would resolve issues of scientific
uncertainty regarding (a) the science underlying the 1996 Air Quality Criteria Document for
Particulate Matter,  (b). our  scientific knowledge  regarding  susceptible  subpopulations and
hazardous PM components, and (c) the implementation of the current PM standards.  The EPA
research plan also addresses several critical research issues which are included in multiple NAS
topics. These include:

    1.  Potential confounding of PM health effects with other pollutants in the air.   The EPA
       research program is sequenced such that much initial effort has gone towards identifying
       specific components of PM. Once health effects of specific components are determined,
       it will be possible  to ascertain the  contribution of other  pollutants  to health  effects
       associated with PM and it components. This plan is in agreement with  the NAS timeline
       for  research on PM and co-pollutants.   Although EPA is  far  from understanding  the
       health effects associated with all PM components, enough progress has been  made that
       EPA  will now initiate  studies formally examining the role played  by co-pollutants.
       Epidemiologic research under this topic will assess the consequences of PM and  co-
       pollutant exposures in at-risk populations including the relative toxicity of specific PM
       constituents from various emission sources and the role of gaseous co-pollutants (such as
       nitrogen dioxide and carbon monoxide) in PM health effects.

    2.. Attribution of the PM health effects to specific constituents  (e.g., sulfates versus nitrates
       versus organic and elemental carbon, and metals).  The new monitoring network, which
       includes the supersites and speciation sites, is providing information about specific PM
       components.   Future epidemiology studies will  associate health  effects with these
       components.  Current and planned toxicology studies are also linking health effects with
       specific PM components found in ambient PM, and attempting  to further link  specific
       components  with sources that produced them in an effort to link  health effects with
       pollution sources.

    3.  The quantitative relationship between exposure  to different particles and various health
       effects.   The assessment of the hazards associated with PM has proceeded in line with
       the NAS Risk Assessment Paradigm of 1993. This paradigm initially establishes  the
       existence of a hazard (i.e., Hazard ID) and its 'biologic plausibility,' and then ascertains
       the attributes  of dose  (concentration)-response.  The  preponderance  of  data  to date
       correlates exposure to PM mass  with many different  health effects,  including eardio-
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       respiratory mortality and morbidity, and life-shortening.  Since these outcomes occur at
       levels previously thought to be  "safe" a high priority must now be placed on establishing
       dose-response models in  epidemiology and toxicology studies.  Only with established
       dose (concentration) - response relationships between particles (and their components)
       with potentially adverse health effects, will appropriate and credible assessment of the
       true risks and impact to human health be determined.

       NAS Priority Topic 1- Outdoor measures vs. actual human exposures  to PM: As the
NAS time line suggests, exposure related research in FY 2003 is moving from Topic 1 to Topic
2, measuring exposure to specific PM components.

       NAS Priority Topic 2 - Exposure of susceptible subpopulations to toxic PM components:
Research under this NAS Topic, as well as under NAS Topic 1, will investigate exposure of both
the general population  and susceptible subpopulations  to PM and the  components of PM
suspected to pose the greatest health risks.  Specifically, this research includes measurements to
generate PM human exposure data and the development of modeling tools needed to estimate
exposures to PM  and  its components. Work will  continue  to develop  models that predict
exposure, and to link these exposure models to atmospheric and lung deposition models.

       NAS Priority Topic 3- Characterization of PM emission sources:  This work will:  (1)
develop new or  improved methods and models  to quantify or  estimate emissions; (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.  Research on gaseous PM
precursors  will focus on improving ammonia emission  factors for different types of animal
husbandry operations (swine and poultry) and on-road light-duty vehicles. Ammonia emissions
are currently not well quantified and air quality models  require improved ammonia emissions
data to accurately predict secondary PM formation both close  to the sources of ammonia and
farther downwind in more highly populated areas.  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.

       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
processes that control the chemical composition of PM and develop urban-to-regional scale
emissions-based air quality models and source apportionment models. 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.  These  efforts will increase
understanding of atmospheric processes (including meteorology) and chemistry that affect the
secondary formation, transport, and fate of PM to support NAAQS implementation planning, as
well as the evaluation of alternative risk management options. Improved methodologies and
models will allow us to do more accurate and complete analyses than currently possible.

       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, as  well as dose-response relationships  between PM
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constituents and adverse  health  effects.  This research will involve  an integrated,  multi-
disciplinary approach in which emission  characterization and health information will guide
chemical speciation research.  Well-characterized PM samples from sources of concern (oil and
coal-fired boilers, diesel trucks, open burning) will be provided for toxicological testing.  The
emphasis of this research will be on simulating mixtures of PM that people are actually exposed
to in the ambient environment in such a way that effects of specific PM components can be
evaluated individually and in combination.

       NAS Priority Topic 6 - Deposition and Fate of Particle in the Respiratory Tract: Because
work in this area is focusing on the differences between normal and  susceptible individuals, it
has been merged with NAS Topic 8, Susceptible Populations.

       NAS Priority Topic 7 - Effects of PM and co-pollutants: Continuing research efforts to
understand and  disentangle the effects of PM and co-pollutants include  studies of interactions
between PM and other air pollutants, as well as toxicological and clinical studies to investigate
effects of co-pollutants  on  PM health effects.  Additional research under this topic will include
epidemiological studies to assess the consequences of PM and co-pollutant exposures in at-risk
populations.

       NAS Priority Topic 8 - Identify susceptible subpopulations: Health effects research will
identify subpopulations with enhanced sensitivity  to  the adverse effects of PM and determine
how host susceptibility factors Influence dose-response relationships.   This work  will  also
develop animal models of human susceptibility and conduct studies identifying morbidity effects
on  vulnerable population  subgroups. Dosimetry research continues to be a high priority  area
because recent studies have  shown that PM is deposited in greater  amounts, and  in different
pulmonary locations, in people with lung disease than in healthy people.

       NAS Priority Topic 9 - Toxicological mechanisms of injury:  Research will  identify
underlying mechanisms of toxicity responsible for adverse health outcomes. This research will
also determine  physical, chemical, and biological characteristics of particles responsible for
adverse health effects.

       NAS Priority Topic 10 - Analysis and measurement: Research will support development
of methods for the use of alternative indicators of exposure to PM, which can be correlated  with
morbidity and mortality outcomes.

       In FY  2003, EPA will also continue supporting 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 addressing all ten high-priority research areas identified by the NAS.  Research at
these  centers  includes exposure studies, the  development of dosimetry models, toxicological
studies, and acute effects epidemiological studies.

       In addition, EPA's PM  research program  will continue to coordinate activities in the
Supersites  monitoring  network, which provides  detailed air quality information to  support
atmospheric chemistry  and  modeling  efforts,  evaluation of new and  emerging monitoring
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methods, as well as lexicological and epidemiological studies  that will  support both future
NAAQS decision-making and NAAQS implementation.

       Finally,  EPA's  PM research  program also includes  support for the development  of
methods to measure PM and its components and to evaluate options to manage PM risks.  This
research will include support for the development of Federal Reference Methods (FRM) needed
to implement the PM NAAQS and will investigate continuous monitoring methods for both PM
mass and speciated PM.

FY 2003 Change from FY 2002 Request

EPM

*•     (-$600,000) Resources for the  FY 2002 Homeland Security Supplemental, used for one-
       time equipment purchases, are  not continued in FY 2003.

*•   .  (47,150,000) The FY 2002 Request is $7,150,000  below the FY 2001 Enacted budget
       level due to Congressional  earmarks received during the FY 2002 appropriations process
       which are not included in the FY 2003 President's Request.

••     (-$764,900)  Resources, dollars and FTE,  associated  with rent are allocated in proportion
       to Agency-wide  FTE located  in each goal, objective.    Resources, dollars and FTE,
       associated with  utilities,  security  and  human  resource operations  are  allocated  in
       proportion to Headquarters FTE located in each goal, objective. Changes reflect shifts in
       FTE between goals  and  objectives.  Resources,  dollars  and  FTE, associated  with
       contracts and grants are allocated in proportion to  Headquarters' contracts and grants
       resources located in each goal, objective.  Changes in these activities reflect shifts in
       resources between goals and objectives.   (Total changes - rent:  -$3,569,400, utilities:
       +$3,468,000, Security:  -$9,103,900, Nominal increases/decreases occurred in human
       resource operations, grants and contracts related activities.)
STAG-
S&T
       (-$6,500,000) Redirected state grant funds from the NAAQS program to the air toxics
       program to help states develop a national air toxics monitoring network.
       (-$5,100,000) The FY 2002 Request is $5,100,000 below the FY 2001 Enacted budget
       level due to Congressional earmarks received during the FY 2002 appropriations process
       which are not included in the FY 2003 President's Request.

       (+$14,000,000) This increase is for the implementation of equipment upgrades required
       to accurately measure the emissions  of Tier II vehicles and low-emission heavy-duty
       diesel engines. This level  includes: (1) $8.5 million for emission measurement system
       upgrades required to fully implement and enforce the new Tier 2 emission standards and
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       test procedures for all passenger cars and light trucks beginning with the 2004 model
       year; (2) $3.0 million for emission measurement system upgrades required to develop the
       model year 2004 and 2007 Diesel Engine Standards and to subsequently implement and
       enforce these standards for all on-highway heavy-duty engines; and (3) $2.5 million for
       digital  and computer-based  emission  measurement  system  upgrades  required  to
       accurately measure the next generation of emission control systems.
Research
S&T
       (+$3,580,300)  Resources will be redirected within the Objective from long-term PM
       health effects studies supporting multiple N AS-identified high priority research topics to
       additional research focusing on the combined effects of PM and gaseous pollutants (NAS
       7), and  mechanisms of injury (NAS  9).  Very little data is  available  on the actual
       mechanisms of PM toxicity. Research on the 'mechanisms of injury  is needed to better
       understand the  causal link between PM exposures and adverse health outcomes in support
       of risk assessments.  In addition, most  PM risk assessments currently address the effects
       of specific pollutants separately, and research on combined effects will allow for a more
       complete assessment of the human health  risks associated with  the direct effects  of
       exposure to PM in combination with other air pollutants.

       (-$3,580,300)  Resources will be redirected within the Objective from long-term PM
       health effects  studies  (multiple  NAS  research topics) to  work focusing on combined
       effects of PM and  gaseous pollutants,  and mechanisms  of injury.  This multi-year
       program will continue to focus on assessing the health impacts of long-term exposures to
       PM and its constituents, and a substantial base remains to continue this program.

       (+$800,000) Resources will be shifted within the Objective to support Federal Reference
       Method (FRM) development. The current FRM is outdated and states have requested
       newer continuous monitoring technologies.   Special  emphasis  is  needed on a Federal
       Reference Method  (FRM) for  continuous sampling of  PM, including  coarse  PM,
       development of  speciation techniques,  and resolution of  issues related  to  pollutant
       speciation.

       (-$800,000)    Resources  will  be  shifted  within  the   Objective  to support  FRM
       development.  This  research focused on field and modeling research on the generation
       and control of ozone, fine particles, and photochemical processes in the southern United
       States. The program was scheduled to expire in FY 2002.

       (+$658,800, +2.0 FTE)  This change represents a shift of resources within the Objective
       from emissions characterization research for  toxicology  support  (NAS 3) to increase
       support  for state efforts to develop attainment strategies.  This work will focus on PM
       source profiling and characterization for mobile sources (also NAS 3), including research
       to improve  or develop  new  methods to quantify the  size distribution  and  chemical
       composition of fine PM and gaseous precursor emissions from off-road sources.
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(-$658,800, -2.0 FTE) This shift of resources within the Objective will reduce resources
for emissions characterization research (NAS 3) supporting PM toxicology work.  There
will be a modest delay in providing data for use in toxicology studies.

(+$490,600, +6.9 FTE)   Resources will  be redirected within the Objective to PM
exposure measurement  and modeling (NAS  1&  2),  including the development of
exposure data and models to predict exposure.  Planned research related to homeland
security will conclude in FY 2002.

(-$490,600, -6.9 FTE) Planned research related to homeland security in the area of health
effects and exposures at the  World Trade Center will conclude in FY 2002.  Resources
will be redirected to PM exposure measurement and modeling (NAS 1& 2).

(+$400,000) This increase augments PM exposure  measurements research (NAS 2) to
provide data for PM mass and toxic components. The results from this research will be
representative of the general population  and selected subpopulations and will focus on
areas that include quantifying the relationship between  ambient  measures and personal
exposure,  as  well as  directly quantifying the magnitude, frequency,  and duration of
exposure.

(+$66,500, +0.3 FTE)   This  increase in resources  will be used  to coordinate EPA
scientific participation in regulatory development with program offices on major rules.

(-$2,242,500)  The FY 2003 Request is $2,242,500.below the FY 2002 Enacted budget
level due to Congressional earmarks received during the  FY 2002 appropriations process
which are not included in the FY 2003 President's Request.
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Annual Performance Goals and Measures


Reduce Ozone and Ozone Precursors

In 2003        Maintain healthy air quality for 44,1 million people living in monitored areas attaining the ozone standard; certify that 2 areas of
               the remaining 45 nonattainment areas have attained the 1-hour NAAQS for ozone thus increasing the number of people living in
               areas with healthy air by 1.0 million.

In 2002        Maintain healty air quality for 41.7 million people living in monitored areas attaining the ozone standard; certify 10 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 by 2.5 million.

In 2001        EPA maintained healthy air quality for 38,2 million people living in 43 areas attaining the ozone standard, increased by 3.5
               million the number of people living in areas with healthy air quality that have newly attained the standard by certifying that 3
               new areas have attained the 1-hour standard.

Performance Measures:                                        FY2001            FY20Q2            FY2003
                                                              Actual              Enacted             Request
Total Number of People who Live in Areas Designated to              41,679,000         44,146,000          45,167,000       People
Attainment of the Clean Air Standards  for Ozone

Areas Designated to Attainment for the Ozone Standard                       3                 10                   2       Areas

Additional People Living in Newly Designated Areas with              3,475,000          2,467,000           1,021,000       People
Demonstrated Attainment of the Ozone Standard

VOCs Reduced from Mobile Sources                                1,659,000           1,755,000           1,852,000       Tons

NOx Reduced from Mobile Sources                                  1,189,000           1,319,000           1,449,000       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-houf standard.  Through 2001, 46 areas with a population of 41.7 million have been redesignated to
               attainment and 55 areas remain in nonattainment. (Population estimates based on 2000 census.) 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 Particulate Matter

In 2003        Maintain healthy air quality for 7.2 million people living in monitored areas attaining the PM standards; increase by 81 thousand
               the number of people living in areas with healthy air quality that have newly attained the standard.

In 2002        Maintain healthy air quality for 3.4 million people living in monitored areas attaining the PM standards; increase by 3.7 million
               the number of people living in areas with healthy air quality that have newly attained the standard.

In 2001        EPA maintained healthy air quality for 1.189 million people living in 9 areas attaining the PM standards and increased by 2.249
               million the number of people living in areas with healthy air quality that have newly attained the standard.

Performance Measures:                                        FY2001             FY2002            FY 2003
                                                               Actual              Enacted            Request
Total Number of People who Live in Areas Designated in               3,438,000           7,181,000           7,262,000       People
Attainment with Clean Air Standards for PM

Areas Designated to Attainment forme PM-10 Standard                       868      Areas

Additional People Living in Newly Designated Areas with              2,249,000           3,743,000              81,000       People
Demonstrated Attainment of the PM Standard

PM-10 Reduced from Mobile Sources                                   22,000             23,000              25,000      Tons

PM-2.5 Reduced from Mobile Sources                                  16,500             17,250              18,000      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.  Since that time, EPA has split Pocatella into 2 areas thereby revising the baseline to 85 with a
               population of 31,114,000. Through 2001,17 areas with a population of 3.4 million have been redesignated to attainment.
               (Population estimates based on 2000 Census.) The 1995 baseline for PM-10 reduced from mobile sources is 880,000 tons and
             .  659,000 for PM-2.5.                                                                :

 Reduce CO, SO2, NO2, Lead

 In 2003        Maintain healthy air quality for 52.7 million people living in monitored areas attaining the CO, SO2, NO2, and Lead standards;
               increase by 4.1 million the number of people living in areas with healthy air quality that have newly attained the standard.
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In 2002        Maintain healthy air quality for 36.7 million people living in monitored areas attaining the CO, SO2, N02, and Lead standards;
               increase by 16 million, the number of people living in areas with healthy air quality that have newly attained the standard.

In 2001        EPA maintained healthy air quality for 36.3 million people living in 56.areas attaining the CO, SOI, N02, and Lead standards
               and increased by 418,000 the number of people living in areas with healthy air quality that have newly attained the standard.

Performance Measures:                                         FY2001            FY2002            FY 2003
                                                              Actual              Enacted             Request
Total Number of People Living in Areas Designated in                36,721,000          52,725,000          56,732,000       People
Attainment with Clean Air Standards for CO, SO2, NO2, and
Pb

Areas Designated to Attainment for the CO, SO2, NO2, and                   9                  8                  15       Areas
Pb Standards

Additional People Living in Newly Designated Areas with                418,000          16,005,000           4,007,300       People
Demonstrated Attainment of the CO, SO2, NO2, and Pb
Standards

CO Reduced from Mobile Sources                •                 10,672,000          11,002,000          11333,000       Tons

Total Number of People Living in Areas with Demonstrated           14,944,000          14,944,000          14,944,000       People
Attainment of the NO2 Standard
 Baseline:       For SO2, NO2, Lead, and CO, 107 areas with a population of 67,573,000 were classified as non-attainment or were unclassified
               in 1990.  Through 2001,65 of those areas with a population of 36.7 million have been redesignated to attainment. (Population
               estimates based on 2000 census.) The 1995 baseline for mobile source emissions for CO was 70,947,000 tons.

 Air Quality Index

 In 2003        The three year average of the total number of days nationwide that any city reports air quality index (AQ1) values greater than
               100 in the nation's 94 largest metropolitan areas will drop from 1,548 in  1997-1999 to 1,290 in 2001-2003, which is 3.7% of
               total days.

 In 2002        The three year average of the total number of days nationwide that any city reports air quality index (AQ1) values greater than
               100 in the nation's 94 largest metropolitan areas will drop from 1,548 in  1997-1999 to 1,390 in 2000-2002, which is 4,0% of
               total days.

 In 2001        Three year trend data not available until late 2002,

 Performance Measures:                                         FY2001            FY2002            FY 2003
                                                               Actual              Enacted             Request
•Numberof Area Days Greater than 100                               DataLag               1,390               1,290      AreaDays



 Baseline:       The AQ1 provides information on pollutant concentrations for ground level ozone (O3), paniculate matter (PM-10), carbon
               monoxide (CO), sulfur dioxide (SO2), and nitrogen dioxide (NO2). Of these 5 pollutants, only 4 (CO, O3, PM-10, and SO2)
               generally contribute to the AQ1 value. Ozone contributes 98% of the AQ1  days over  100 due to ozone in 1999.  The proposed
               measure is a three year running average of the total metropolitan statistical area days  (msa-days) above an AQ1 value of 100.
               This averaging helps to account for the variability (upward and downward  swings) associated with the significant effect of
               meteorology on this metric. Since 1993, the running 3 year average of AQ1 msa-days> 100 has fluctuated with a high of 1,586
               for 1993-1995, a low of 1,414 for 1997-1999 and the mean of the average number of rasa-days from the three year periods 1991-
               1993 through 1998-2000 at 1,490. This is a new measure for 2003, EPA will use the mean for the previous 7 three year periods
               (1,490) as its estimate for 2001 and targeted a reduction of 100 total msa-days each year through 2003.

 Research

 PM Effects Research

 In 2003        Describe health effects of PM and its components in normal and susceptible populations, mechanisms by which PM exerts
               adverse health effects, and analyze ambient and personal exposure to PM so that EPA has the necessary information to develop
               NAAQS  that protect human health.

 In 2002        Provide data on the health  effects and exposure to paniculate 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        EPA provided new  information on the atmospheric concentrations, human exposure,  health effects and mechanisms of toxicity
               of paniculate matter.

 Performance Measures:                                         FY2001            FY2002            FY2003
                                                               Actual              Enacted             Request


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Performance Measures:

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 particuiate 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.

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

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).

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.

Longitudinal PM exposure panel study final report.

Complete 3rd External Review Draft for the PM AQCD for .
public comment and CASAC review.

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

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

Describe the relative importance of PM attributes (physical,
chemical, and biological) on health outcomes in laboratory
animals and humans.

Ascertain attributes of susceptibility contributing to the
responsiveness of cardiovascular- and pulmonary-
compromised humans and laboratory animals.

Describe biochemical and neurogenic mechanisms by which
PM modulates cardiovascular, hematological, and pulmonary
functions.

Report on the acute respiratory health effects of particulate
matter and  co-pollutants among  asthmatic children in seven
U.S. communities.
FY2001
 Actual
FY2002
Enacted
FY 2003
Request
                                                          study


                                                          report
                                                           final AQCD

                                                           report
                                1

                           1 draft


                                1


                                1
                                       report


                                1       report




                                       report



                                       report




                                       report




                                       report

                                       report


                                       report



                                       report
                                                           evaluation
                                                           analysis
                                                           evaluation
                                                           report
Baseline:       At present, there is substantial evidence from epidemiological studies that increased levels of particulate matter (PM) are
               associated with increased frequency of death and disease, especially in the elderly, in individuals with cardiopulmonary disease,
               and in children.  We still do not understand which PM components are responsible for increased mortality and morbidity, nor do
               we fully understand whether personal exposure to PM is reflective of exposure information obtained from fixed site monitoring.
               Our understanding of the biological mechanisms underlying these associations, and a fuller understanding of populations which
               may be  susceptible to PM are als,0 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 2003 will include development
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             and application of new methods for assessing human exposure, identifying susceptible populations and major PM components
             responsible for toxicity, and characterizing mechanisms of toxicity leading to PM health effects, all of which will yield an
             improved scientific basis for setting National Ambient Air Quality Standards (NAAQS) for PM.

PM Measurement Research

In 2003       Provide updated data on PM source emissions, technology costs and performance, and air quality models so that States will have
             improved PM emissions inventories and compliance strategies for attaining the PM NAAQS and safeguarding public health.

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

Performance Measures:                                     FY2001          FY2002           FY2003
                                                        Actual            Enacted           Request
Publish a report on the size distribution of particles emitted                   1                                         report
from diesel trucks under various on-rpad conditions to
improve source inventories for NAAQS implementation.

Publish peer reviewed documentation of the PM components                  1                                         documentation
ofModels-3/CMAQ,

Prepare a report evaluating a new PM control technology,                                                        1      report
electrostatic fabric filtration, for use on coal-fired boilers.

To support the OAR PM regulatory program, prodiice a                                                          1      paper
paper on emissions of ammonia from hog waste lagoons,
both before and after application of mitigation techniques.

Complete analysis of organic compounds in PM samples                                                        1      compendium
from combustion sources. Data will be used to update an
OAR database used by states to determine sources of ambient
PM.



Baseline:      There are existing databases, measurement methods, models, and other tools used to support decisions concerning
             implementation of the NAAQS for PM. Recent scientific advances and proposed changes to the PM standard require additional
             research to update and validate the existing tools and to develop new tools.  While much is known about the emissions and
             concentrations of sulfur oxides and nitrogen oxides that contribute to formation of PM in the ambient air, less is known about
             other variables such as emissions of ammonia and directly emitted PM,.how to measure the organic and elemental fractions of
             PM, and the myriad atmospheric reactions that lead to PM formation.  Improvements  are needed to measure various PM
             components at high time resolution' and better specificity and to determine the physical properties of PM including size fractions
             and composition in ambient monitoring networks. Improvements are also needed to better understand the effect of
             meteorological parameters and other factors that may bias the measurements.  Studies to validate and upgrade emission based
             and receptor models are also needed to ensure these tools produce the best results possible to support NAAQS compliance
             decisions. Key needs include studies to validate PM concentrations generated by the  model against actual field measurements,
             improved data on the composition of directly emitted PM to identify unique tracers that relate emissions from a specific source,
             and improvements in our understanding "of PM formation in clouds and fogs and transport processes at the surface and aloft to
             upgrade model algorithms that calculate atmospheric PM formation. Finally, as new  PM and multi-pollutant control
             technologies are developed, technical and economic assessments are needed to assess their viability. Federal, state, and local air
             quality officials will use the upgraded models, methods and other tools to design and  implement existing and new PM and
             visibility standards.


Verification and Validation  of Performance  Measures


Performance Measures:  NAAQS

••       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:

••       AlRS-  Aerometric Information Retrieval System is comprised of two major  subsystems:

         1) the Air Quality Subsystem (AQS) stores ambient air quality data (used to determine
         whether   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.


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**     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). SlPs 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/QC Procedures:
••     AIRS:  The  Quality Assurance and  Quality Control (QA/QC) of the national air
       monitoring program have 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.

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

Data Limitations:
•*     AIRS: Potential data issues: 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 issue is incomplete or missing data from Regions.

Data issues are all subject to the  QA/QC procedures listed above and therefore are resolved or
accounted for depending on how the data will be used.

New/Improved Data or Systems:
*•     AIRS:   AQS,  which stores ambient air quality data from over 5000  sites across the
       country, is a user-friendly, Windows-based Oracle relational database.  State and  local


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       agencies routinely upload air quality data to AQS on a quarterly basis, which the public
       can access through the web. Fiscal Year 2002 efforts will begin the process of moving
       AQS from a client-server application to a web application, allowing agencies to submit
       data to AQS via the Agency's Central Data Exchange (CDX). AFS, a mainframe system
       that the Office of Air Quality Planning and Standards (OAQPS) used for many years for
       managing its national emissions database has been replaced by the  National Emissions
       Trends (NET) database.  NET is an ORACLE database accessible through the  Internet.
       Both systems will be enhanced to include the data standards  (e.g., latitude/longitude,
       chemical  nomenclature) developed under the Agency's  Reinventing  Environmental
       Information (REI) Initiative. Facility identification standards will be included so that air
       emission data in the NET  database can be  linked with environmental data  in  other
       Agency databases for the same facility.
       FREDS: None

Performance  Measure:   Reductions  in Mobile Source VOC Emissions  and Reduction in
Mobile Source NOx Emissions

Performance Database: AIRS

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

OA/QC Procedures: AIRS: The Quality Assurance and Quality Control (QA/QC) of the national
air monitoring program  have 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 issues: 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).

Data issues are all subject to the QA/QC procedures  listed above and therefore are resolved or
accounted for depending on how the data will be used.
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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 contractors 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 for  future years. When the  method  for estimating emissions
changes significantly, EMD usually  revises its older estimates of emissions in years prior to the
most  recent  year, to avoid a  sudden discontinuity in the.apparent emissions trend. EMD
publishes  the national emission estimates in  hardcopy;  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 Office  of Transportation and Air Quality requests that this 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 grams per mile (g/mile) and  also the estimated vehicle miles
traveled for each vehicle class.  For nonroad emissions, the estimates come from a model using
equipment populations,  emission factors per hour  or unit of work, and an estimate of usage.
These input data are frequently 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: AQS, which stores  ambient air quality data from over
5000  sites across the country,  is a user-friendly,  Windows-based  Oracle relational database.
State  and  local agencies routinely upload air quality data to AQS on a quarterly basis, which the
public can access through the web.  Fiscal Year 2002 efforts will begin the process of moving
AQS  from a  client-server application to a  web application, allowing agencies to submit  data to
AQS  via the Agency's Central Data  Exchange (CDX).  AFS, a mainframe system that the Office
of Air Quality Planning and Standards (OAQPS) used for many years for managing its national
emissions database has been replaced by the National Emissions Trends (NET) database. NET is
an ORACLE database accessible through the Internet. Both systems will be enhanced to include
the data  standards  (e.g.,  latitude/longitude,  chemical nomenclature)  developed under the
Agency's  Reinventing  Environmental  Information  (REI)  Initiative.  Facility  identification
                                          1-45

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standards will be included so that air emission data in the NET database can be linked with
environmental data in other Agency databases for the same facility.

Performance  Measure;   Reductions  in Mobile Source  PM  10 Emissions and PM 2.5
Emissions

Performance Database: AIRS

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

QA/OC Procedures: AIRS: The QA and QC of the national air monitoring program have 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 record  keeping
procedures  must be followed; and 5) data from SLAMS must be summarized and reported
annually to EPA. Finally, there are system audits that regularly review the overall air quality data
collection activity for any needed changes or corrections.

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

Data Limitations: AIRS: Some potential data issues :  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).

 Data issues are all subject to the QA/QC procedures listed! above and therefore are resolved or
accounted for depending on how the data will be used.

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  contractors 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 for future years. When the method for estimating emissions
changes significantly,  EMD usually revises its older estimates of emissions in years prior to the


                                          1-46

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most recent  year, to avoid  a sudden discontinuity in the apparent emissions trend.  HMD
publishes the national emission estimates in hardcopy; 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 Office of Transportation and Air Quality requests that this 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 estimated vehicle miles traveled for each vehicle
class.  For nonroad emissions, the  estimates come  from a model using equipment populations,
emission factors per hour or  unit  of work, and an  estimate of usage.   These  input data are
frequently 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: AQS, which stores ambient air quality data  from over 5000 sites across the country, is a
user-friendly, Windows-based Oracle relational database.  State  and  local agencies  routinely
upload air quality data to AQS on a quarterly basis, which the public can access through the web.
Fiscal Year 2002 efforts will begin the process of moving AQS from a client-server application
•to a web application, allowing agencies to submit data to AQS via the Agency's Central Data
Exchange (CDX).  AFS, a mainframe system that the Office  of Air  Quality Planning and
Standards (OAQPS) used for many years for managing its national emissions database has been
replaced by the National  Emissions Trends (NET) database.  NET is an ORACLE database
accessible through the Internet. Both systems will be enhanced to include the  data  standards
(e.g., latitude/longitude, chemical  nomenclature) developed under the Agency's Reinventing
Environmental Information (REI) Initiative. Facility identification standards will  be included so
that air  emission data in  the  NET database can be linked with environmental data in  other
Agency databases for the same facility.

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


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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. We will also work with other Federal  agencies such as the U.S. Coast
Guard on air emission issues.

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  other agencies' research efforts, including the Departments of Energy and
Commerce, and the National Science  Foundation, and planned to achieve the  most important
overarching  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  governments,   utilities, industry,  and
academia throughout Mexico, the United States, and Canada.

       Participate Matter  Research Program.  The  National  Academy of Sciences PM
research  plan  serves  as the principal  guideline  for EPA's  PM research program.   EPA
coordinates  with  other  Federal agencies (e.g., the National   Institutes of Health  and  the
Department of Energy) to review ongoing PM research activities and, where  appropriate, re-
focus activities so as to be consistent with the NAS plan. The EPA has chosen  to take a broad-
based approach to PM research planning  and program development, which includes participation
by 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 lexicological,
epidemiological, and exposure research are done in combination. 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


                                         1-48

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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 a Research
Strategy for PM which will benefit all organizations engaged in PM-related research.

       One key opportunity for coordinating research supporting State efforts to implement the
PM NAAQS is through the expansion of NARSTO, which has broadened its mission to include
PM-related efforts.  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 (42 U.S.C. 7401-767Iq)

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

National Highway System Designation Act

Research

Clean Air Act (CAA) (42 U.S.C. 7401-7671q)
                                        1-49

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                           Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                       Clean Air

Objective: Reduce Air Toxics Risk

       By 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 subpopulations, and substantially reduce or eliminate adverse effects
on our natural environment. By 2010, the tribes and EPA will have the information and tools to
characterize and assess trejnds in airtoxics in Indian country.

                                  Resource Summary
                                 (Dollars in Thousands)

Reduce Air Toxics Risk.
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY2001
Actuals
$101,548.2
$48,479.1
$25,785.4
$27.283.7
377.7
FY 2002
Enacted
$114,658.9
$56,402.2
$27,466,3
$30.790.4
375.2
FY 2003
Request
$118,023.2
$56,913.9
$23,818.9
$37,290.4
371.4
FY 2003 Req.
v. FY 2002 Ena,
$3,364.3
$511.7
($3,647.4)
$6,500.0
-3.8
                                     Key Program
                                 (Dollars in Thousands)

Administrative Services
Air Toxics Research
Air.State,Local and Tribal Assistance Grants:
Other Air Grants
Congressionally Mandated Projects
EMPACT
Facilities Infrastructure and Operations
Hazardous Air Pollutants
Homeland Security
Legal Services
Management Services and Stewardship
FY 2001
Enacted
$185.5
$19.077.0
$29,877.0
$3,161.7
$309.7
$4,288.9
$53,290.2
$0.0
$1,462.7
$620.1
FY 2002
Enacted
$0.0
$18,923.4
$30,790.4
$4,095.0
$0.0
$5,430.0
$52,225.3
$353.5
$1.552.6
$1,288.7
FY 2003
Request
$0.0
$19,883.7
$37,290.4
$0.0
$0.0
$5,249.3
$52,622.4
$0.0
$1,713.0
$1,264.4
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$960.3
$6,500.0
($4,095.0)
$0.0
($180.7)
$397.1
($353.5)
$160.4
($24.3)
                                          1-50

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FY 2003 Request

       Toxic air pollutants, also known  as hazardous air pollutants (HAPs), 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.  People who live near certain major
industrial plants may face even higher risks.

       The Clean Air Act Amendments of 1990 list 188 HAPs that are emitted from a variety of
sources including:   mobile sources, major stationary sources,  and area stationary  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 the  total air
toxic emissions in urban areas, and that stationary sources make up the remaining 55  percent.
For several individual 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 air toxics  from all
categories of sources.  Title II  of the Amendments calls on EPA to develop standards to control
HAPs 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  lead time,  cost,
noise, energy, and safety factors. Title III of the Amendments lists the 188 HAPs and  requires
EPA to  develop  Maximum Achievable  Control  Technology (MACT)  standards  for major
stationary sources  of these pollutants.    Within  eight years  after promulgating the  MACT
standards, EPA must evaluate the residual risk posed by the sources and promulgate additional,
risk-based standards, if needed, to provide an ample margin of safety to protect public health and
the environment or to prevent, taking in  consideration costs, energy, safety, and other  relevant
factors, an adverse environmental effect.

       Title III of the Amendments also requires EPA to develop a national urban air toxics
strategy that achieves mandated cancer and non-cancer risk reduction goals, to  identify at least
30 hazardous air pollutants that present the greatest risk in urban areas, to develop MACT or
Generally Available Control Technology  (GACT) standards for area sources that  emit those 30
or more  pollutants, and to encourage and work with state and local air pollution programs to
reduce risks in urban areas.  In addition,  the Clean Air Act Amendments require  EPA, through
the Great Waters Program, to study the effect of air toxics on ecosystems, particularly important
water bodies.   Finally, Title III mandates control of air  toxics from combustion sources and
analysis of emissions from fossil-fueled electric utilities.

       To meet Clean Air Act requirements, EPA carries out an integrated air toxics  program
that includes: characterizing the air toxics problem through air monitoring, emission inventories,
and  the  National  Air Toxics  Assessment (NATA);  reducing air toxics emissions  through
developing and implementing Federal  source-specific  and sector-based standards; addressing
multi-media and cumulative risks through national, regional, and  community-based initiatives;
and providing public education and outreach.
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       EPA now is  close to completing the first,  technology-based  phase of the  air toxics
program and is moving to the second, risk-based phase. The second phase focuses on mobile
and stationary source emissions that affect urban areas and large water bodies and the health and
environmental risks that remain after the first-phase controls are in place. In this second phase,
the Agency will:

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

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

Characterizing Air Toxics

       For FY  2003, EPA will continue to invest in improved and innovative monitoring and
modeling, emissions inventories, and risk assessment tools to better characterize urban and local
scale problems  and to address multi-media issues and multi-pathway exposures.  EPA now is
completing development of information and tools to  broadly characterize the air toxics problem
on a national scale and measure progress in improving public health and reducing environmental
effects.  For example, the Agency has developed a modeling tool to combine the emission
estimates of stationary, mobile, and area sources and project future emissions that account for
economic growth.  These efforts will allow the Agency to better characterize the risks from air
toxics  and to establish a baseline for measuring changes in risk, as the Agency carries out the
Government Performance and Results Act (GPRA) requirements to assess  progress in meeting
national goals.  This work also will aid in future efforts to characterize and quantify the benefits
of air toxics program activities.

       EPA is working with states,  Tribes, and local agencies to create a national monitoring and
inventory program that better characterizes public exposures to  hazardous air pollutants.  In
general, existing monitoring programs measure concentrations of only a limited number  of toxic
compounds and only at limited locations.  EPA is continuing to work with other agencies to
expand air toxics monitoring, particularly in urban areas and around major water bodies. A major
investment is requested in this area. The Agency will establish a centralized database on toxic
compounds in urban  areas including in air, water,  and solid waste; and update and improve the
air toxics emission inventories.  In addition, the Agency is establishing and updating databases
for toxics deposition, and supporting deposition monitoring studies. Finally, EPA is working
with the Department of Defense (DOD) and the Department of Energy (DOE), to evaluate and
advance the development of new and improved continuous source monitoring technology for
emissions of air toxics.

       EPA 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 developed a national-scale air quality model, the Assessment
System for Population Exposure  Nationwide  (ASPEN).   The  1996 National Air  Toxics
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Assessment (NATA) uses the ASPEN model with a more detailed emission inventory for the
year;  evaluates the  model with expanded ambient monitoring information; and integrates an
exposure model, the Hazardous Air Pollutant Exposure Model (HAPEM), to better assess public
health effects.  The application of ASPEN and HAPEM provides one basis for evaluating the
effectiveness  of the nation's air toxics programs.  In FY 2003, EPA will update NATA with a
1999  emissions database using the ASPEN model for 33 pollutants.   In response to comments
from  the Science  Advisory  Board, the  Agency  will implement  enhanced  methods for
identification of more sensitive pollutants. Also, the Agency will complete analyses to document
the uncertainty and variability associated with NATA inputs and models and their effects on risk
estimates and characterizations.  The uncertainty and variability analysis will be  coordinated
with relevant  state agencies.

       In FY 2003 EPA plans increased data collection efforts focusing on local hot spots and
providing support in environmental justice issues.  The Agency will evaluate and improve local-
scale modeling efforts to support local evaluations and try to make them more resource efficient.
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, that can then use the
information in evaluating options for air toxic emissions reductions.

       In FY 2003, 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. One of the tools
that is being developed to aid EPA in estimating multi-media exposures and risk is the Total Risk
Integrated Methodology (TRIM).  TRIM  is designed, in response to scientific recommendations
and Agency guidelines and  policies, for the evaluation  of health and environmental from air
toxics and criteria pollutants.  In FY 2003,  the Agency expects  to  use TRIM to  evaluate the
residual risk for certain pollutants.  The intent is that public release be accompanied by updated
documentation and guidance for users. EPA will continue to identify patterns in exposures to air
toxics to develop more effective strategies.

       In FY  2003, EPA  will, develop guidance  materials  and  training  for Consolidated
Emissions Reporting (CERR) for HAPs.  The  Agency will work with partners to  develop
improved emission  factors. This effort will include gathering improved activity  databases and
use of geographic information systems  (GISs) and satellite remote sensing, where possible, for
key point source,  area source, combustion,  and fugitive dust source categories^ and global
emission events.  EPA will coordinate with stakeholders on the development of a real time data
system to catalogue wildland fire events and improve emission models for these fires.

       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  fuel
registrations,  and 6,000 additive registrations. Approximately 10,000 registration reports will be
                                          1-53

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submitted.  EPA will continue fuel additive health testing activities for Methylcyclopentadienyl
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 further  controlling emissions  of toxic air pollutants
associated with motor vehicles and fuels. In FY 2001, EPA issued a rule to address emissions of
air toxics from mobile sources.   This program identified 21 mobile source  air toxics, which
include several volatile organic compounds and metals, as well as diesel particulate matter and
diesel  exhaust organic  gases.  The rule evaluated the effectiveness  of existing mobile source
emission control programs in reducing highway emissions of the identified mobile source toxics.
The analysis showed that significant  reductions of mobile source air toxics are expected from
existing programs that reduce ozone  and particulate matter (PM), including:  the reformulated
gasoline  program, the national  low emission vehicle program, the emission standards  for
passenger vehicles and gasoline sulfur control requirements (Tier 2), and the 2007 heavy-duty
vehicle standards and diesel fuel sulfur control requirements.

       Because the Agency recognizes  that  additional research and evaluation are needed to
fully understand the extent of the mobile source air toxics  problem,  the rule established a
Technical Analysis Plan that outlines our plans for additional research into toxics emissions from
nonroad vehicles and equipment, estimation of exposure in microenvironments, consideration of
the range of total public exposure to air toxics, and effectiveness and costs of control measures.
This research will  inform 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. To prepare for this review, in FY 2003 EPA will  continue
gathering emissions data, conducting  exposure analyses, and evaluating the need for additional
control.  These activities will contribute to an improved characterization of the mobile source air
toxics problem, as well as the continued enhancement of emissions and exposure models.

Reducing Emissions and Risk from Stationary and Mobile Sources

       Under Title III of the Clean Air Act  Amendments, EPA has completed all of the two-
year, four-year, and seven-year MACT  standards.  Through September 2001, the Agency has
proposed twenty-one and  promulgated four (of the total  53 standards  covering  94 source
categories) 10-year standards.   Once fully implemented by the  states, the MACT standards,
including those yet to be completed, are expected to reduce air toxics emissions by some  1.5
million tons per year and reduce risks  to the public for  cancer and other serious health problems.

       In FY 2003 and FY 2004, EPA will focus its efforts on completing the remaining 10-year
MACT standards. To date, the Agency has delisted five MACT standards, and has finalized four
MACT standards.  Current Agency plans are to finalize 13 MACT standards in FY 2002, 19 in
FY 2003, arid  12 in FY 2004. EPA expects to have all but 9 MACT standards proposed by May
2002.   The states and  industry  can use the proposed  standard, or presumptive MACT, as
boilerplate language to prepare and approve permit applications.

       In FY  2003,  EPA also  will be working  on implementing,  delegating,  and addressing
issues  such as process changes that may result in amendments to promulgated MACTs. EPA
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believes that Federal standards for controlling emissions of HAPs from area and major stationary
sources are 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.   To this end, EPA will use emissions testing and,
where feasible and cost-effective, 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 air toxics data.

       In FY 2003,  EPA will continue the  extensive residual risk  analyses  for  already
promulgated MACT standards to determine if additional standards are necessary to reduce the
remaining health and environmental risks from these sources.  For those source categories where
EPA determines that additional control is needed, the Agency will then develop residual risk
standards.  To determine whether additional standards are needed  requires  significant data and
analyses  to determine the residual risks (emissions, source characterization, exposures, etc.) as
well as potential control options for reducing the risks.

       EPA currently is working on risk assessments to help with residual risk decision making
for eight  source categories. An EPA decision on the first category, coke ovens, is expected early
in calendar year 2002 with decisions for an additional six categories  coming due in FY  2002.
Decisions on nine  more source categories will be due in FY 2003, and EPA will be initiating
assessment activities for these in the next few months.  EPA plans to refocus resources from the
MACT program to support these assessment activities.

       In addition to these standards, EPA determined in .December  2000 that regulation was
necessary and  appropriate for  coal- and oil-fired electric utility  steam  generating  units.
According to the existing settlement agreement, EPA will propose these regulations in December
2003^ and promulgate them in December 2004.  Section 129 of the Clean Air Act, as amended in
1990, also requires the  establishment of performance standards for  four  categories of  waste
incinerators: municipal waste combustors (MWC); health, infectious, medical waste incinerators
(HIMWI); commercial  and  industrial waste  incinerators  (CISWI); and other  solid  waste
incinerators (O.SWI). The large MWC category reached compliance in December 2000, and the
small MWC and CISWI regulations were promulgated in 2000.  Regulations for HIMWI are
currently in remand from the D.C. Circuit Court, and  OSWI regulations are  due in November
2005.  Currently, the Agency is being litigated on the MWC, CISWI, and OSWI regulations.
The Agency will be taking a voluntary remand on CISWI to address the issues in the current and
previous  litigations. The Federal Plans for small MWC units was proposed in FY 2001; the final
is planned for FY 2002.  The  Federal Plan for CISWI units is scheduled for proposal in late FY
2002 with final promulgations planned for FY 2003. In the July 2001 Sierra  Club suit, EPA is
also cited for failure to  meet the requirement to review and revise the MWC rule  within five
years.  In FY 2003, EPA will propose MACT regulations for steam  generating units and will
continue  to develop responses for ongoing litigation on the section 129  regulations.

       The Integrated Urban Air Toxics Strategy, released in 1999,  identified the HAPs 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
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sources are subject to regulation. The strategy contains a schedule of activities to:  substantially
reduce non-cancer 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. EPA is working on an initial list of 13
source categories which address some of the largest emission sources. When the list is finalized
to meet the 90 percent requirement, it may contain more source categories.

       In FY 2003, EPA will continue to develop the state, local, and Tribal component of the
strategy so that these  entities can address emission issues that are of concern on  a state-wide,
area-wide,  or community-wide basis.  In addition,  EPA will  continue to support community
assessment and risk reduction projects.  First, the Agency will provide information to states and
communities through case examples, documents, websites, and workshops on tools to help them
in conducting assessments and identifying  risk reduction strategies.  Second, the Agency  will
compile and analyze the information from local assessments and use it to better characterize risk
and assess priorities for further action.   The Agency will then complete its reassessment of 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.

       EPA's existing  engine  certification, compliance, and fuel  quality requirements  will
continue to provide reductions of toxic air  pollutants as well as criteria air pollutants.  Under
these requirements, engine/vehicle manufacturers are required to certify that any engine/vehicle
entered into commerce in the  U.S. meets the emission limits set by EPA.   Fuel refineries
demonstrate compliance by submitting survey data to EPA.  In addition to these implementation
requirements many state  and  local  agencies  supplement  these requirements with  vehicle
inspection and maintenance programs and local fuel testing.

       EPA will continue its efforts to address  and prevent adverse effects of atmospheric
deposition  of toxics  and  nitrogen compounds  in  the  Great Waters,   This  work involves
collaboration  within   EPA  offices  and  with  the  National  Oceanic  and  Atmospheric
Administration  (NOAA).   In FY 2003, EPA will continue to implement, and will  revise as
needed, the air/water interface work plan, a framework for the EPA's air and water offices to
address air/water issues. Efforts in this work plan include  the development and support of multi-
media regulatory approaches  to reduce risk  and achieve  water quality standards,  such as
enhancing  technical tools and developing demonstration projects that facilitate Federal, state,
Tribal and regional deposition reduction strategies.  For example, EPA  will analyze national
scale modeling  assessments of deposition, taking into account the recent inventory  and air rules,
to determine where additional reductions may be necessary to address the remaining risk and
water quality concerns. EPA also will provide up-to-date information regarding air deposition
through education and outreach efforts. These include synthesizing current trends information
and sponsoring  workshops and conferences.

       During FY 2003, EPA will continue work begun  in FY 2001 to evaluate CAFOs in an
effort to characterize the industry, identify  sources of air emissions and control practices, and
estimate air emissions. In  conjunction with the U.S. Department of Agriculture  (USDA), the
Agricultural Air Quality Task Force (AAQTF), and other stakeholders, EPA will develop a 4- to
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5-year research plan to collect information necessary to implement these various approaches. In
FY 2003, EPA will conduct studies and gather data to carry out the research plan.

       In 2001 the Inspector General completed a report concerning EPA's actions to address
the asbestos exposure to citizens in Libby, Montana. The exposure to asbestos in Libby was a
result of the mining of asbestos contaminated vermiculite.  One of the recommendations from the
Inspector General  was for the Agency to  consider the need  for regulation of contaminant
asbestos under the Clean  Air  Act  through  a  National Emission  Standard for Hazardous Air
Pollutants (NESHAP).  As a first step in implementing this recommendation, EPA will produce
an Asbestos Action  Plan in FY 2002.  The  Action Plan will  outline  the steps necessary to
determine if a NESHAP is necessary for ores contaminated with asbestos. The implementation
of the plan will continue into FY 2003 regarding decisions on  the need for a NESHAP.  If a
NESHAP is necessary, then work in this area will continue for several .years as the NESHAP is
developed.

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

Research

       For  FY 2003, the focus of air toxics research will be on risks humans experience from
exposures to hazardous air pollutants (HAPs)  from both outdoor (mobile, point, and area) and
indoor sources.  The primary  goal of this research is to improve the  Agency's capability to
support future national, regional, and local scale assessments of air toxic sources, exposures and
risks to human health. This research will lead to an improved understanding of the activities and
factors that affect human exposure, the development of dose-response information necessary to
determine health effects from individual HAPs, mixtures of HAPs, and to identify and determine
the risks of HAPs exposures to susceptible populations.  Thus, air toxics research will include an
emphasis on understanding cumulative risks  resulting from  exposures to HAPs from varied
sources.

       Research will continue  to improve  techniques to characterize  HAPs emissions  from
outdoor and indoor sources, and identify innovative low-cost approaches to control or prevent
emissions.  Ongoing studies are being conducted to refine estimates of toxic emissions from all
classes of highway  vehicles, and to improve  the techniques  used to measure emissions from
point and area (dispersed) sources. Additional studies are developing an improved understanding
of chemical  reactions  between toxic pollutants in the  indoor environment and  developing
improved methods and models to quantify sources of indoor HAP emissions.

       Research will also continue  to focus on improving our understanding of how HAPs are
formed and can be prevented  in industrial and combustion processes and how to appropriately
measure these emissions on a continuous basis.  The emissions  data produced by this research
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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
support development and implementation of future urban HAPs regulations, and compliance
with any residual risk standards.

       Continuing health effects research will characterize exposure-dose-response and health
effects of HAPs  through the  development  of biomarkers, modes-of-action information, and
models.  This research supports the reduction of large uncertainties in  quantitative estimates of
the health effects of HAPs compounds  by developing models to extrapolate from animals to
humans,  and from studied HAPs to less understood HAPs that react in a similar manner.  The
range of health effects of high priority HAPs and their mixtures (including VOCs and mobile
source-related pollutants) will  be determined under various exposure scenarios.  Health effects
methodology work will focus on high priority urban HAPs including fuel and fuel additives, and
indoor pollutants.

       Research in air quality modeling will expand the Models3/Community Multiscale Air
Quality (CMAQ) modeling system to  include specific HAPs  and will  continue to  develop
neighborhood scale modeling  capabilities to support urban and local scale  assessments.  To
improve  the fate and transport component of EPA's  air quality models, air chemistry research
will be conducted to characterize the lifetime and fate of urban HAPs.

       A critical piece of the  Agency's National Air Toxics Assessment  (NATA), which will
prioritize the HAPs posing the greatest health risks, is  to estimate  actual  human exposure.
Exposure research will combine modeling and measurement efforts to provide tools and data to
estimate  human exposure  to  air toxics with greater certainty.  Exposure models will use
stochastic approaches to measure average exposures as well as the maximum exposed individual.
The models will also be useful in determining acute and chronic exposures. These activities will
provide information on the relationships between ambient, indoor, and personal concentrations
for several HAPs and identify key microenvironments and human  activities which influence
personal  exposure.

       Assessment activities planned for FY 2003 will develop cancer unit risk and chronic non-
cancer inhalation reference concentrations (RfC), oral reference doses (RfD), and  non-cancer
acute  reference exposure (ARE) values.   Cancer and non-cancer  dose-response  assessment
methodologies will also  be refined to reduce uncertainty  in human  health risk assessments.
Testing data from fuel/fuel additives will be reviewed and associated assessments developed.

       Technical  support under the air  toxics research program includes  consulting (e.g., on
listing/delisting petitions and reports to Congress),  evaluating alternative fuel and fuel  additive
testing results, and performing  assessments and consulting on fuels and fuel additives. Research
support activities will also provide review and consultation for residual  risk assessments,
national  scale assessments,  and indoor  air assessments.   The Air  Risk  Information  Support
Center (Air RISC) will continue to supply information on air pollution to state, Tribal, local, and
Federal offices of environmental health protection.
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FY 2003 Change from FY 2002 Enacted

Research
S&T
       (+$353,500; +2.3 FTE)  Resources will be redirected within the Objective to air toxics
       exposure, methods modeling and emissions characterization. Planned research related to
       homeland security will conclude in FY 2002.

       (-$353,500;  -2.3  FTE)   Planned research related to homeland security looking at the
       flow characteristics  and dispersion patterns of toxic air pollutants will conclude in FY
       2002.  Resources  will  be redirected to air  toxics exposure, methods modeling and
       emissions characterization.

       (+$199,500) These resources from Goal 2, Objective 1, are for the purpose of developing
       additional dose-response assessments for mobile source air toxics.

       (+$71,600;  +0.3 FTE)   These resources will be used  to coordinate EPA scientific
       participation in regulatory development with program offices on major rules.

       (-$4,095,000) The FY 2003 Request is $4,095,000 below the FY 2002 Enacted budget
       level due to Congressional earmarks received during the FY 2002 appropriations process
       which are not included in the FY 2003 President's Request,
STAG
       (+$6,500,000) This increase will result in expanded and improved state, Tribal, and local
       agency monitoring of air toxics to help assess the effectiveness of EPA's integrated air
       toxics program, as well as the multi-pollutant strategy.  In FY 2003, EPA will provide
       state, Tribal, and local agencies with grant funds to put in place a network approximately
       20 additional air toxics monitoring sites. The resultant monitoring  data will provide a
       resource of enormous scientific value.  The ambient air toxics data will be useful in near-
       term and future activities such as:
       -      identifying changes in local air toxics exposures and individual risks;
       -      improving and updating estimates of nationwide inhalation exposures and risks
              (e.g., EPA's National Air Toxics Assessment);
       -      tracking trends in emissions and concentrations of air toxics, as well as progress
              in reducing risks from air toxics exposures;
       -      evaluating the effectiveness of EPA, state, Tribal, and local air toxics programs;
       -      providing  a  "reality  check"  on actual  emission  reductions  and  ambient
              concentrations versus model-derived estimates;
       -      providing inputs for other models that include  or require air toxics information,
              including multi-media and cross-media exposure models.
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Annual Performance Goals and Measures

Reduce Air Toxic Emissions
In 2003      Air toxics emissions nationwide from stationary and mobile sources combined will be reduced by an additional 3% of the
           updated 1993 baseline of 6.1 million tons (for a cumulative reduction of 40% from the 1993 level of 6.1 million tons per year.)
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      End-of-year FY 2001 data will be available in late 2004 to verify that air toxics emissions nationwide from stationary and mobile
           sources combined will be reduced by 5% from 2000 (for a cumulative reduction of 35% from the 1993 level of 4,3 million tons.)

Performance Measures:                               FY2001         FY2002         FY2003
                                                Actual          Enacted         Request
Combined Stationary and Mobile Source Reductions in Air                 553     Percent
Toxics Emissions
Federal Register Publication of Final MACT Standards                   4              13              19     Notices
Number of proposed MACT standards.                             13              15              9     Proposed

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 are now estimated to have emitted 6.1 million tons of air toxics. (EPA's prior
           estimate was 4.3 million tons.) 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. Using revised
           inventories .and improved models, the estimate has been revised up from the previous estimate of 4.3 million tons.

Verification  and Validation of Performance Measures

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

Performance  Database:  National Toxics Inventory (NTI)

Data. ..Source:  The NTI  includes  emissions  from large industrial  or point  sources, smaller
stationary area sources, and mobile sources.   The  baseline  NTI (for base years 1990 -  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, Toxics Release Inventory (TRI) data, and
emissions estimates using accepted emission inventory methodologies.  The 1996 and the 1999
NTI  contain  facility-specific, non-point source, and mobile source  estimates and  are  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 and 1999  state and local facility  data  are supplemented with data collected
during the development of the MACT standards and TRI data.

QA/QC Procedures: Because 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. When a discrepancy among data sources
is found, EPA tries to determine the best primary source data. Mobile source data are validated
by using speciated test data from the mobile source emission factor program, along with peer-
reviewed models which estimate national tons for the relevant year.
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Data Quality Review: EPA staff, state and local agencies, and industry have reviewed the NTI.
To assist in the review of the 1999 NTI, the EPA provided a comparison of data from the 3 data
sources (MACT, TRI, and state and local inventories) for each facility.

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 and 1999 NTI  are a significant improvement over the
baseline  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 (2002, and later
years)  are  expected to  improve  significantly because  of increased interest in the  NTI  by
regulatory agencies, environmental interests, and industry, and the greater potential for modeling
and trend 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 to reduce air toxics from mobile sources are coordinated with
the Department of Transportation (DOT). These partnerships can  involve policy assessments
and toxic emission reduction strategies in different regions of the country.  Other Federal agency
partnerships have been  created to share costs for  researching  health effects and collecting
ambient air toxic monitoring data.  l

       EPA also is 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 (FTA) designed to educate the public about the  impacts of transportation choices
on traffic congestion, air quality, and public health. This community-based public education
initiative also includes the Centers for Disease Control (CDC).  In addition, EPA is working with
DOE to identify opportunities in the Clean Cities program.

       The Agency is continuing to work closely with the Department of Labor's Occupational
Safety and -Health Administration' (OSHA) to coordinate the development of EPA and  OSHA
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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 Department of Health and Human Services' (HHS) CDC and the
National Institute of Environmental Health Sciences (NIEHS) on health risk characterization. To
assess  atmospheric deposition and  characterize  ecological  effects, EPA works  with the
Department of Commerce's National Oceanic and Atmospheric Administration (NOAA) and the
Department of the Interior's U.S. Fish and Wildlife Service,

       The Agency has worked extensively with the Department of Health and Human Services
(HHS) on the National Health and Nutritional Evaluation Study (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.

       During FY 2003, EPA will continue to work closely with the USDA through the joint
USDA/EPA Agricultural Air Quality Task Force (AAQTF).  The AAQTF is a workgroup set up
by Congress to oversee agricultural air  quality- related  issues.   The AAQTF  is working to
determine the extent to which agricultural activities contribute to air pollution and to develop
cost-effective ways in which the agricultural community can improve air quality. In addition, the
AAQTF coordinates research on agricultural  air quality issues to avoid duplication and ensure
data quality and sound interpretation of data,

Research

       EPA's Air Toxics  Research  Program works with other Federal agencies,  such  as the
National Institute of Environmental Health  Sciences (NIEHS) and  the National Toxicology
Program (NTP), on an ad hoc basis to identify and coordinate research needs. The Agency also
interacts with other organizations that  conduct air toxics research. The Health Effects Institute
conducts complementary research related to air toxics that is coordinated with EPA activities.

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. 7651-7661f)

Research

Clean Air Act (CAA) (42 U.S.C. 7401-767Iq)
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                     Clean Air

Objective: Reduce Acid Rain.

      By 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)

Reduce Acid Rain.
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$17,943.2
$13,472.0
$4,015.2
$456.0
86.6
FY.20Q2
Enacted
$20,991.1
$14,922.2
$4,241.2
$1,827.7
92.5
FY 2003
Request
$21,097,8
$15,278.9
$3,991.2
$1,827.7
91.5
FY 2003 Req.
v. FY 2002 Ena.
$106.7
$356.7
($250.0)
$0.0
-1.0
                                    Key Program
                                (Dollars in Thousands)

Acid Rain -CASTNet
Acid Rain -Program Implementation
Administrative Services
Air,State,Local and Tribal Assistance Grants:
Other Air Grants
Congressionally Mandated Projects
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
FY2001
Enacted
$3,991.2
$12,248.7
$17.0.0
$4,060.0
$249.4
$0.0
$1,040.3
L $135.6
FY 2002
Enacted
$3,991.2
$12,500.2
$0.0
$1,827.7
$250.0
$1,311.3
$834.7
$276.0
FY 2003
Request
$3,991.2
$12,790.4
$0.0
$1,827.7
$0.0
$1,292.6
$923.5
$272.4
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$290.2
$0.0
$0.0
($250.0)
($18.7)
$88.8
($3.6)
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FY 2003 Request
                                              Title IV - Utility
                                  SO2 and NOX Emissions Reductions
                                  20 i
                                  15 -
                                                   SO2 Emissions
                                                                   WithoutTitle IV
                                -§10 -
                                2  5 -
to
c
o
'55
U)
•-
LJJ
                                   0
                                      17,5
                                                    WO- Emissions
                                    1980   1985   1990    1995    2000   2005   2Q10

                                                            Year
       Emissions of sulfur dioxide (SOa, 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.   MOX
deposition  also contributes to
eutrophication of coastal waters,
such as the Chesapeake Bay and
Tampa   Bay.    Additionally,
before falling to earth, SOa 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 at national parks.

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

       Major Acid Rain  Program  activities include:  measurement,  quality assurance, and
tracking of SOa, NOX, and COa 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;  recording transfers of emission
allowances in the SOi allowance tracking system;  reconciling emissions and allowances for all
affected sources to ensure compliance; and processing permit actions.
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       The Acid Rain Program was developed through two phases.  Phase I of the Program
began in FY 1995, requiring SOa reductions from approximately 400 electric utility units. Phase
I also required approximately 250  of these units to make NOX reductions beginning in FY 1996.
Phase II of the Program began in FY 2000  and required reductions in SOi 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) has not increased as
dramatically  because  Phase II electric utility units were  already required to report their
emissions.

       There has been more than a four-fold increase in the number of units for which EPA will
conduct an annual reconciliation of allowances with measured emissions.  Concurrently, there
has been a significant increase in  SOa 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,  In  addition, the number of subject  sources has increased
steadily as new capacity is built into the system to meet the Nation's expanding energy demands.

       In  addition to  these operational activities, the Acid Rain Program is responsible  for
managing the Clean Air  Status  and Trends Network (CASTNet), a dry  deposition  monitoring
network, as  well as for  providing  critical operational support  for the National Atmospheric
Deposition Program (NADP), a wet deposition network. These monitoring efforts play a crucial
role in the Program's ongoing  assessment activities,  including reporting outcomes under  the
Government  Performance and Results  Act (GPRA), and fulfilling assessment responsibilities
under the United States-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 deposition, and their effects, including assessing the costs and benefits of Title
IV.  In FY 2003, the  Acid Rain Program will 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 SOi and NOX portions of the Acid Rain
Program,  including certification  and re-certification  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.

       The Acid Rain Program  will produce significant benefits in terms of lowered surface
water acidity and less damage to  materials and high elevation forests.  Nevertheless, after full
implementation of the current program, significant residual risks will remain to human health,
ecological systems,  and  quality of  life.  Thus, analysis to support a  clean power legislative
initiative will continue in  FY 2002 to address this deficiency as well as issues related  to visibility
impairment and attainment of the national air quality standards for ozone and fine particles.
                                          1-65

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                       Sulfate Deposition in Acid Rain Reduced (kg/ha)

                       1989-91                                            1995-97
                                         32  >35
                            20   2:3   2j>   29  32  >35
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 2003 Change from FY 2002 Enacted Budget


S&T


        (-$250,000) The FY 2003 Request is $250,000 below the FY 2002 Enacted Budget level
        due  to Congressional earmarks  received  during  the FY  2002 appropriations process
        which are not included hi the FY 2003 President's Request.


Annual Performance Goals and Measures

Reduce SO2 Emissions

In 2003      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 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      End-of-year FY 2001 data will be available in late 2002 to verify that 2 million tons  of NOx from coa!-fired utility sources were
           reduced from levels that would have been emitted without implementation of Title IV of the Clean Air Act Amendments.
Performance Measures:
SO2 Emissions
FY2001
 Actual
    On track
FY2002
Enacted
   5,000,000
FY 2003
Request
  5,000,000
Tons Reduced
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Baseline:       The base of comparison for assessing progress on the  annual performance goal is the 1980 emissions baseline. The 198.0 .SQ2
              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 S02 emissions cap for year
              2010 and later is at 8.95 million tons which is approximately 8.5 million tons below 1980 emissions level. "Allowable SO2
              emission level" consists of allowance allocations granted to sources each year under several provisions of the Act and additional
              allowances carried over, or banked, from previous years.

Reduce NOx Emissions

In 2003        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 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        End-of-year FY 2001 data will be available in late 2002 to verify that NOx emissions during ozone season from participating
              utility and  industrial sources were below allowable level authorized by allowance (approximately 50% reduction from 1990
              baseline).

Performance Measures:                                      FY2001            FY 2002           FY2003
                                                          Actual            Enacted           Request
NOx Reductions                                               On track          2,000,000          2,000,000      Tons Reduced



Baseline:       Performance Baseline: The base of comparison for assessing progress on this annual performance goal is emissions that would
              have occurred in the absence of Title IV of the Clean Air Act Amendments.  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, Decemberl9,1996).

Reduce Ozone Season NOx Emissions

In 2003        Control NOx emissions during ozone season from participating utility and industrial sources to below allowable level authorized
              by allowances.'

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

In 2001        End-of-year FY 2001 data will be available in late 2002 to verify that NOx emissions during ozone season from participating
              utility and  industrial sources were below allowable level authorized by allowance (approximately 50% reduction from 1990
              baseline).

Performance Measures:                                      FY2001            FY2002           FY 2003
                                                          Actual            Enacted           Request
Ozone Season NOx Reductions                     •              Data Lag            220,000           220,000      Tons Reduced



Baseline:       Performance Baseline: The 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 enabling state 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: SOi and NOx emission reductions

Performance Database: Emissions Tracking System (ETS), SO2 and NOx emissions collected by
Continuous  Emission  Monitoring  Systems  (CEMS),  CASTNet  (dry. .deposition),  National
Atmospheric Deposition Program (NADP) (wet deposition)
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Data Source:
••     On a quarterly basis ETS 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, operated and maintained by EPA's Office  of Air and
       Radiation (OAR).
••     NADP is a national  long-term  wet deposition network that  measures precipitation
       chemistry and provides long-term geographic and temporal trends in concentration and
       deposition of 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 Illinois  State  Water Survey/University of Illinois
       maintains the NADP database.

QA/QC Procedures:
**     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 CEMS fails the bias test,
       indicating a potential  for systematic underestimation of emissions, either the problem
       must be identified and  corrected or the data are adjusted to minimize the 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:
••    The ETS provides instant feedback to sources to identify  any data reporting problems.

       EPA staff then conduct data quality review on each quarterly ETS file. In addition, states
       or EPA staff conduct random audits on selected sources' data submission.
••     CASTNet recently 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.
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Data Limitations: None

New/Improved Data or Systems:  In order to improve the  spatial resolution of the Network
(CASTNet), additional monitoring sites are needed.

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 Clean Air
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. 7651-7661f)

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

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Environmental Protection Agency
2003 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 2: Clean and Safe Water	II-1
        Ensure Safe Drinking Water and Recreational Waters...	,	11-12
        Protect Watersheds and Aquatic Communities	,	,	11-39
        Reduce Loadings and Air Deposition	,	11-62

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                           Environmental Protection Agency

           FY 2003 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
human health, enhance water quality, reduce flooding, and provide habitat for wildlife.

                                  Resource Summary
                                 (Dollars in thousands)

Clean and Safe Water
Safe Drinking Water, Fish and
Recreational Waters
Protect Watersheds and Aquatic
Communities
Reduce Loadings and Air Deposition
Total Workyears
FY2001
Actuals
$3,627,441.4
$1,171,900.7
$448,020.6
$2,007,520,1
2,628.1.
FY 2002
Enacted
$3,827,784.3
$1,356,291.1
$463,061.1
$2,008,432.1
2,747.3
FY 2003
Request
$3,214,674.2
$1,148,425.1
$435,814.7
$1,630,434.4
2,742.8
FY 2003 Req.
v. FY 2002 Ena.
($6:13,110.1)
($207,866.0)
($27,246.4)
($377,997.7)
-4.5
Means and Strategy

       To achieve  the  Nation's  clean  and safe water  goals, EPA  will operate under  an
overarching  watershed approach in carrying out its statutory authorities under both the 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, arid implementation of solutions based on sound
science 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 based on good science, prioritization of effort, sound risk assessment, and
effective risk management;  2) providing flexibility to  the states in  monitoring for certain
contaminants and in setting time frames for compliance with regulations, and providing funding
for improvements to drinking water infrastructure through the Drinking Water State Revolving

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Fund (DWSRF); 3) establishing new prevention approaches, including provisions for operator
certification,  capacity  development, and  source water protection;  and 4) providing better
information to consumers, including consumer confidence reports.

       EPA has a significant role in protecting public health from terrorist attacks on the nations
critical water infrastructure. Through Presidential Decision Directive (FDD) 63, EPA is working
through a public-private partnership to safeguard water supplies  and wastewater treatment from
terrorist acts. Using FY 02 base and supplemental funds, EPA  and its partners, especially the
American Water  Works Association  (AWWA) and the Association of Metropolitan Water
Agencies (AMWA), fulfill this responsibility by providing  technical and  financial assistance to
utilities to assess vulnerabilities of water supplies and to take appropriate actions to protect water
systems.

       EPA will continue 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 water quality criteria (including aquatic life, human health, biological,
nutrient,  and pathogen criteria), enhanced fish tissue monitoring, development of fish  and
shellfish consumption advisories, and risk assessment activities.  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.  Beach water
quality monitoring and public notification will be improved by providing grants to state and local
governments  as authorized under  Section 406  of the  Clean Water Act.  These efforts  help
implement the Beaches Environmental  Assessment and Coastal Health (BEACH) Act of 2000
with its emphasis on developing strong monitoring and notification programs.

       Key to the watershed approach is continued development  of scientifically-based water
quality standards and criteria under the CWA and better consolidated identification of waters not
meeting these goals under Sections 303(d) and  305(b).  Where  water quality standards are not
being met, EPA will work with states and tribes to improve implementation of a Total Maximum
Daily Load (TMDL) program that establishes the analytical basis for watershed-based decisions
on needed pollution reductions. To support states  and tribes in their standards adoption  and
TMDL programs, EPA will continue to provide scientifically sound  criteria and guidance for
toxic chemicals, nutrients, biological integrity, microbial, and  physical stressors.  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,  strengthen the focus of state nonpoint source programs on protecting and restoring
waterbodies,  and  target 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 with
states  to  reduce the  NPDES  permit backlog and to expand  data  management/electronic
information activities to include permit information on storm water, combined sewer overflows
(CSOs),  sanitary  sewer overflows (SSOs), concentrated animal feeding operations (CAFOs),
indirect discharges, and other emerging areas. Annual performance goals to reduce discharges

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and to prevent pass through to the Nation's waters will identify these sources and model their
loading reductions.  With concrete information on the NPDES universe, including sufficient data
to model loading reductions from all classes of discharges and integration of that information
with  other  water quality  data,  EPA  will be better  able  to  describe the  environmental
improvements from approximately 550,000 point sources covered by NPDES permits.

       EPA has moved forward to provide guidance and regulations to cover the expanding
universe of NPDES facilities.  The phase II storm water rule's permitting requirements become
effective in FY 2003, and the CAFO rule will be issued in December 2002.  Work to address
CSOs and SSOs is also proceeding.  EPA is completing guidance and data collection for reports
to Congress as required by the Wet Weather Water Quality Act of 2000.  Strategies are being
developed for other emerging areas, such as pesticide discharges and invasive species, as well as
expedited permitting of energy facilities.

       The Clean Water SRF is an important tool for achieving clean and safe water by helping
communities meet their significant needs for wastewater infrastructure over  the next 20 years
and providing increased support  to address nonpoint source problems.   The budget request
includes $1.212  billion for the CWSRF.  This investment continues EPA's for the CWSRF to
provide $2 billion in average annual financial assistance over the long-term even after Federal
assistance ends.  Total SRF funds available for loans as of July 2001, reflecting loan repayments,
state  match dollars, and  other sources of funding,  are approximately $37.7 billion, of which
$34.3 billion  has been provided  to communities as financial  assistance.  The Agency again
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 for one year.

        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 (NFS)
management programs.  Working with  EPA,  states  and  tribes  are strengthening their NFS
•programs  to  ensure  that needed nonpoint source  controls are implemented  to achieve and
maintain beneficial uses  of water.  In particular,  EPA and the states are working together to
better use the Clean Water Act Section 319 framework and funds to develop and implement
nonpoint source TMDLs.  States will continue to implement coastal NFS  programs 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 CWA Section 404
and Farm  Bill  programs.   In particular,  the agency  will focus  its efforts on  developing
appropriate tools to assess wetlands extent and condition, increasing the success of wetlands
restoration projects, and protecting vulnerable wetlands. EPA will be part  of coordinated Federal
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agency  efforts  to  support  conservation  of  fauna,  including  the  North  American  Bird
Conservation Initiative and Partners for Amphibians and Reptile Conservation.

       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 address 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, and prevent dead zones and fish kills which
can 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.   Finally,  EPA will  have a
coordinated strategy for protecting drinking water sources that includes  microbial pathogen,
chemical, and nutrient criteria.

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 research provisions  of the 1996 Safe  Drinking  Water Act  (SDWA) 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. The focus will be on filling
key  data gaps  and  developing  analytical  detection methods  for measuring  the occurrence of
chemical and microbial contaminants on the Contaminant Candidate List (CCL).  The  Agency
will  develop and evaluate cost-effective treatment technologies for removing pathogens from
water supplies while minimizing DBF formation, for maintaining the quality of treated water in
the distribution system and for 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 of the population served
by  community  water systems  will  receive  water .that  meets health-based drinking  water
standards.

       Research to support the protection and enhancement of aquatic ecosystems and their
biotic components includes understanding the  structure, function, and characteristics of aquatic
systems, and evaluating exposures and effects of stressors  on those systems.   EPA is also
working to develop biological and  landscape indicators  of ecosystem condition,  sources of
impairment, and stressor response/fate and transport models.  The results of these efforts will
improve risk assessment methods to develop aquatic life, sediment, habitat, and wildlife  criteria,
as well as risk management strategies and  will help EPA and other Federal, state, and local
agencies develop better baseline assessments of water quality.  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

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ecological health assessment of the nation's waters, providing water resource managers with
tools for determining whether their aquatic resources support healthy aquatic communities.  The
Agency also will develop  cost-effective technologies  for  managing  suspended  solids and
sediments with an emphasis on identifying innovative in situ solutions.

       Research in this goal will also provide the scientific basis and technical support for
program, regional and state efforts  to protect  and inform recreational water  users. A sound
scientific foundation connecting water quality indicators and human disease will be established.
This research will also 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 (WWFs),
including: (1) new and improved indicator methods to describe the toxic inputs to  watersheds
from WWFs; (2) methods to utilize condition and diagnostic ecological indicators in evaluating
wet weather flow management strategies in preventing degradation of water and sediment quality
by contaminated runoff; (3) methods for diagnosing multiple stressors  in watershed ecosystems;
and (4) evaluation of low cost watershed best management practices to evaluate risks associated
with various control technologies for wet weather flows.

Strategic Objectives and FY2003 Annual Performance Goals

Safe Drinking Water, Fish and Recreational Waters

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

•      92% of the-population served by community water systems will receive drinking water
       meeting all health-based standards in effect as of 1994, up from 83% in 1994.

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

Protect Watersheds and Aquatic Communities

•      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.

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

 Reduce Loadings and Air Deposition

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

 •      900 projects funded by  the Clean Water SRF will initiate operations, including  515
       projects providing secondary treatment, advanced treatment, CSO correction (treatment),
       and/or storm water treatment. Cumulatively,  8,800 projects will have initiated operations
       since program inception.

 Highlights

       So  that all Americans have water  that  is safe to drink, EPA will work to increase the
 percentage of the population that will 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
 contaminants especially Cryptosporidium,  disinfectants and their byproducts, arsenic, radon,
 radionuclides, and other contaminants.

       In  FY  2003,  EPA  will be completing final regulatory action on all  contaminants
 specifically identified in the  1996 SDWA Amendments.  Consequently, primary attention in FY
 2003 will  be focused on  contaminants from the Contaminant Candidate List  (CCL) and  any
 potential  revisions stemming  from  the  statutorily mandated  six  year  review  of  existing
 regulations.  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: 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.  EPA is required to
 publish the second CCL in the Federal Register in August 2003.  Also in 2003, the Agency will
 be revising, if necessary, existing national primary drinking water regulations that were reviewed
 in FYs 2001 and 2002 using the  best available, peer-reviewed data on occurrence and associated
 health risks, .analytical methods, and treatment  technologies.  Approaches  to  preventing
 contamination will continue to  be emphasized and implemented in  2003 as  EPA assists its
 partners  and stakeholders in effectively implementing all available tools to protect vulnerable
 sources of drinking water supplies.

       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

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resources  on  a watershed  basis, with the  full involvement  of all  stakeholders including
communities, individuals, businesses, state and local governments, and tribes.

       The Targeted Watersheds Project is a new  $21 million program to provide grants to
watershed  stakeholders ready  to implement comprehensive restoration actions.   Targeted
watersheds will be chosen based on criteria established in consultation with our state, local and
other stakeholder partners,  with emphases  on value of the resource,  likelihood of positive
environmental outcomes, evidence of strong state/local government support, ability to leverage
Agency resources, and readiness to proceed based on existing problem identification.

       By FY 2003, with EPA's support, the National Estuary Program will have restored and
protected an additional 25,000  acres of habitat, including sea grass and shellfish beds.  In FY
2003, EPA will continue implementing appropriate management responses  to harmful  algal
blooms and other marine pests and diseases.  EPA will also implement the Agency-specific
action plan in response to the Invasive Species Executive Order. Finally, EPA will implement
management options resulting from its assessment of cruise ship and ballast water 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 program (which includes NPDES permits covering municipal and industrial discharges,
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 2003 are to reduce loadings of  toxic
pollutants,  nonconventional pollutants, and  conventional  pollutants from all categories of
NPDES permitted facilities.  To ensure that  all point sources are covered by current permits,
EPA developed a backlog reduction strategy under which 90 percent of major permittees and 84
percent of minor permittees would have current permits in place by the  close of FY 2003.  In
support of that effort, EPA is developing a permit prioritization strategy to expedite reissuance of
permits of low significance with respect to revisions needed to protect water quality. 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 60  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-2001,
states had invested nearly $1.4 billion in nonpoint source pollution controls through the CWSRF.
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Research

       In FY 2003, EPA's drinking water research program will continue to conduct research to
reduce the uncertainties of risk associated  with exposure to microbial contaminants in drinking
water and improve analytical methods and risk assessments to control risks posed by drinking
water contamination.  As required by the SDWA amendments, the first Contaminant Candidate
List  (CCL) was published in  1998 and included nine microbial contaminants in its Research
Priorities Category that require more data before a regulatory determination could be made.  The
drinking water research program will continue to focus  on microbial  contaminants  on future
CCLs.  Significant data gaps still exist on 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.  Research
efforts will also continue to support arsenic-specific research and development  of more cost-
effective treatment technologies for the removal of arsenic from small community drinking water
systems. This work will include strategies  for the acceptable control of water treatment residuals
enriched with arsenic.  The development of this crucial information will  provide the scientific
basis necessary  to  protect human health  and  ensure  95  percent of the population served by
community water systems will receive water that meets health-based drinking water standards.

       EPA is also conducting research  on suspended solids and sediments (non-contaminated).
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
stressors associated with human activity that adversely affects aquatic habitats.  Suspended solids
and  sediments have been identified among the leading causes of water quality impairment for
streams and rivers. As part of EPA's efforts in FY 2003 to conserve and enhance the nation's
waters, the suspended solids and sediments research program will continue to develop tools to
determine background sediment levels 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 and non-point
sources.  In FY 2003, EPA is investing resources to complete a suite of epidemiological studies
needed to establish a stronger, more defensible  link between water quality indicators and disease.
These epidemiological studies will provide reliable  information about the relationship between
recreational water quality and swimming-associated health effects.  This will enable EPA to
provide states with consistent monitoring methods, standardized indicators of contamination, and
standardized definitions of what constitutes a risk to public health.

External Factors

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 a  consensus-  building process that
includes EPA, the states, and all other drinking  water stakeholders as partners in the development

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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.
However, the need  to preserve DWSRF funding for infrastructure purposes coupled with state
hiring restrictions may have some 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 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
shallow injection wells of which two  types are regulated through a rule promulgated  in 1999,
depends on state and local participation. Because of the sheer number of shallow injection wells
- - over  600,000 nationwide - - 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 mem through guidance,
scientific information, and technical assistance.  EPA cannot take regulatory action to assure that
states and tribes conform to fish consumption advisory guidance; therefore, success depends on
voluntary state/Tribal/local commitment to achieving these goals. The Agency will continue to
develop scientifically sound water quality criteria to protect human health in order to reduce the
number offish advisories and beach advisories or closures necessary in the future.

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       The Beaches Environmental Assessment Act and Coastal Health (BEACH) Act of 2000
provides Federal funds for states and tribes to monitor pathogens at coastal and Great Lakes
beaches and notify the public of advisories or closures; however, the states and tribes are not
required to operate a program if they do not accept Federal funds.  The Agency expects that all
35 eligible states or territories will begin to operate a federally funded program by FY 2003,

       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. For the fish
advisory program, this information has been collected by some states, and is being reviewed to
provide insight to state and Tribal advisory programs on how they can improve their programs.
For the beach programs, this information will be  collected for those states or tribes which have
applied for BEACH  Act  grants; however, this information will  only reflect coastal and Great
Lakes beaches in those states and tribes that have received grants.

       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 may be a limiting 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 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 agency and programs, Federal resource and protection agencies must work together
with  states  and  tribes to  maximize achievements.  Without continued  government-wide
coordination and commitment,  we may  not meet our water quality objectives.  For  example,
coordination with and utilization of Farm Bill conservation programs are crucial, particularly to
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.

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       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.  Recent
court rulings (and related future rulings) will also have a significant impact on efforts to achieve
environmental objectives in the wetlands program.

       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 including state
consolidation of Section 305(b) reports and Section 303(d) lists.  EPA is working with states to
improve  our  tracking and measurement of NFS  load reductions from the  CWA 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 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 and 1 territory are currently authorized to
carry out  the NPDES program.  EPA will also work with the states to reduce pollution from
onsite- decentralized wastewater treatment systems, including septic systems.  Surveys estimate
that, nationally, about  10  percent of onsite-decentralized systems are malfunctioning. EPA  is
developing guidance to help  states and local governments improve the way on-site decentralized
systems are designed, sited, installed and managed to reduce water-related impacts.
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                Clean and Safe Water

Objective: Safe Drinking Water, Fish and Recreational Waters

       By 2005, protect public health so that 95% of the population served by community water
systems will receive water that meets 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)

Safe Drinking Water, Fish and
Recreational Waters
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$1,171,900.7
$128,789.7
$52,429.6
$990,681.4
835.2
FY 2002
Enacted
$1,356,291.1
$128,346.7
$144,126.2
$1,083,818.2
897,6
FY2003
Request
$1,148,425.1
$110,143.9
$69,230.1
$969,051.1
887.4
FY 2003 Req.
v. FY 2002 Ena.
($207,866.0)
($18,202.8)
($74,896.1)
($114,767.1)
-10.2.
                                    Key Program
                                (Dollars in Thousands)

Administrative Services
Beach Grants
Congressionally Mandated Projects
Drinking Water Implementation
Drinking Water Regulations
EMPACT
Facilities Infrastructure and Operations
Fish Contamination/Consumption
Homeland Security
Legal Services
Management Services and Stewardship
PWSS - Homeland Security
Preventing Contamination of Drinking Water
Sources
FY 2001
Enacted
$783.6
$0.0
$129,188.8
$35,058.0
$36,181.1
$793.9
$ 12^624. 6
$3,188.4
$1,963.2
$1,135.4
$2,789.0
$0.0
$22,424.7
FY 2002
Enacted
$0.0
$10,000.0
$143,897.2
$38,332.9
$28,597.4
$0.0
$12,116.5
$2,764.8
$86,058.1
$1.206.3
$4,025.0
$5,000.0
$23,470.2
FY 2003
Request
$0.0
$10,000.0
$0.0
$38,935.0
$30,034.0
$0.0
$12,372.6
$2,788.4
$16,946.5
$1,317.6
$4,240.2
$5,000.0
$22,096.8
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$0.0
($143,897.2)
$602.1
$1.436.6
$0.0
$256.1
$23.6
($69,111.6)
$111.3
$2.15.2
$0.0
($1,373.4)
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Regional Management
Safe Drinking Water Research
Safe Recreational Waters
State PWSS Grants
State Pollution Control Grants (Section 106)
State Underground Injection Control Grants
Water Infrastructure:Drinking Water State
Revolving Fund (DW-SRF)
FY2001
Enacted
$253.7
$47,784.7
$917.9
$93,100.2
$1,995.6
$10,950.9
$823,185.0
FY 2002
Enacted
$357.7
.$45,579.5
$834.4
$93,100.2
$0.0
$10,950.9
$850,000.0
FY2003
Request
$309.2
$49,491.0
$842.7
$93,100.2
$0.0
$10,950.9
$850,000,0
FY 2003 Req.
v. FY 2002 Ena.
($48.5)
$3,911.5
$8.3
$0.0
$0.0
$0.0
$0.0
FY 2003 Request

       The Safe -Drinking Water Act (SDWA) was enacted to protect the health of all Americans
served by public water systems. In 1996 Congress amended the SDWA (the Amendments) in four
key areas to  strengthen the  ability of EPA, states, and drinking water utilities to  provide safe,
adequate, and reliable drinking water supplies. First, the Amendments require that  EPA develop
drinking water regulations based on the best available science and data, sound risk assessment, and
cost/benefit considerations. Special attention is also focused on the health effects of contaminants
on sensitive subpopulations,  such as children, the elderly, and immuno-compromised individuals.
Second, the Amendments provide flexibility to the states in monitoring for certain contaminants and
in setting time frames for compliance with regulations, and provides  funding for improvements to
drinking water infrastructure through the Drinking Water State Revolving Fund (DWSRF). This
component is aimed at improving the abilities of states and utilities  to implement drinking water
regulations. Third, the Amendments focus on preventing contamination of drinking water sources,
providing greater support for  small drinking water systems and requiring  operator certification
programs. Fourth, the Amendments call for increased consumer awareness of safe drinking water
by requiring drinking water utilities to provide annual reports to their customers on the quality of
their drinking water supplies and to notify the public during drinking water emergencies.

       In FY 2003, EPA, states, Tribes and utilities will continue to  be engaged in a vast array of
activities  to  provide  safe and  reliable  drinking water,  from protecting  sources  to ensuring
consumers' confidence in the  safety  of their  tap water. By the end of 2003,  92 percent of the
population served by community water systems will receive drinking water meeting all health-based
standards, up from 83 percent in 1994.

Preventing Contamination of Drinking Water Sources

       Preventing contamination of drinking  water sources, or source water protection, is a high
priority for the national drinking water program. Source water protection is a common-sense, cost-
effective way to  protect public health.  By reducing or preventing contamination before water
reaches utilities, treatment costs to utilities, and therefore consumer  utility bills, are lower.  Such
cost  savings  are particularly important  for small systems and  Tribes,  which tend to have less
technical, financial and managerial capacity  to operate a drinking  water system.  And for the
approximately 140  million Americans who get their drinking water from ground water sources,
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source water protection is often the only barrier against contamination.  EPA and its partners are
working  together to protect source water  by conducting source water assessments, protecting
wellhead areas and sole source aquifers, and ensuring proper disposal of waste through underground
injection.  Nonetheless, a variety  of factors  increasingly threaten the  safety of drinking water,
including the effects of population growth, chemical use, and animal wastes, among others.

       Effective source water protection starts with a comprehensive assessment of threats to
drinking water sources based on sound data, and a deliberate strategy to prevent contamination. By
the end of FY 2003, almost all states are expected to  have completed  baseline source water
assessments for over 54,000  community  water  systems nationwide, and  to have made  this
information available to communities.   For FY 2003, EPA's and the states' preliminary target for
completed assessments in FY 2003 is  39,000 community water systems that  serve approximately
196 million or 75 percent of the U.S. population.  While this target falls short of the deadline
established in the 1996 SDWA Amendments,  both EPA and the states believe that their efforts are
consistent with a time frame that ensures a thorough and comprehensive assessment of community
water systems.  Based on a review of some of the assessments completed so far, states indicate that
significant amounts of data are being collected on the actual and potential sources of contamination
in'Source water assessment areas and the susceptibility of the water supply  to those contamination
sources.  These assessments are being shared with community leaders and the general public within
those source water assessment areas and serve as a framework for states, Tribes, local government,
community water  suppliers, and public health and environmental organizations to implement a
source water protection program.  In  FY 2003, EPA will assist its partners and stakeholders in
effectively implementing all available tools and approaches  to protect  the vulnerable sources of
drinking  water supplies and expect that 2,600 community water systems will have source water
protection programs in place. Two critical components of a source water protection program will be
emphasized, i.e., the identification of relevant  state and Federal programs to support local efforts to
protect source water, and the development of community-level  actions tailored to local conditions
that will increase the capacity of the public to protect its water supplies. With effective source water
protection programs in place, small systems' treatment costs are lower because the water is cleaner
before treatment - leading to lower utility bills for consumers served by small systems.

       Linking underground injection control  and.source water protection is a critical step toward a
comprehensive contamination prevention program.  EPA works with states  and communities to
ensure the proper underground injection of approximately 9 billion gallons of hazardous waste
every year, over 2 billion gallons of brine from oil  and. gas operations  every day, and significant "
amounts  of automotive, industrial, sanitary  and other wastes that are injected into shallow wells.
While regulations have been in place  for deep well injection of hazardous waste and oil and gas
operations for a number of years, EPA and the states are in the  early stages of addressing potential
contamination of drinking water supplies from shallow well injection practices. Protecting source
water from  contamination from  nonhazardous wastes  injected into shallow wells, which are
categorized as Class V injection wells, is the  principal focus of a rule promulgated in 1999.  This
regulation concentrates  on two  types  of shallow underground injection  wells:  large capacity
cesspools and  motor vehicle waste disposal wells for which there are  an estimated 200,000
nationwide.  By the end of FY 2002, 28 states and territories  with primacy  for the underground
injection control (UIC)  program are expected to  have adopted the Class V rule.  In  2003, the

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Agency will work closely with 10 states and territories that are preparing or in various stages of
adopting the rule.  By the end of FY 2003, all  states  and territories that intend to have primary
enforcement authority for this regulation will attain primacy.

       EPA will implement a management strategy (including guidance, outreach, training  and
technical assistance) to protect source water from other types of Class V wells in FY 2003. There
are 23 categories of the more than 686,000 Class V shallow injection wells in the U.S. They range
from the such categories as large-capacity  septic systems (approximately 353,000) to geothermal
direct heat  wells for which there are only 100 or less nationwide.  This management strategy
encourages  states to employ a variety of  management tools and best  management practices to
prevent contamination of ground water resources that serve as drinking water supplies.

       The  Agency will continue to provide states and Tribes with the technical assistance  and
support they need to  implement regulations  for  the  other classes of injection wells,  such as
hazardous and nonhazardous waste wells, and oil and gas production wells. EPA also will continue
to implement, in full or in part, the  UIC program  for 17 states, the District  of Columbia, and all
federally recognized Tribes.

       EPA has a significant role in protecting public health from terrorist attacks on the nation's
critical water infrastructure.  Through Presidential  Decision Directive (FDD) 63, EPA is working
through a public-private partnership to safeguard water  supplies and wastewater treatment facilities
from terrorist acts.  Using FY 02 base and supplemental rands, EPA and its partners, especially the
American  Water Works Association (AWWA)  and  the  Association of Metropolitan Water
Agencies (AMWA), fulfill this responsibility  by providing technical and financial assistance to
utilities to assess vulnerabilities of water supplies and to take appropriate actions to protect drinking
water and wastewater systems. By the end of FY 2002,  EPA and its partners will have strengthened
the coordination of several critical counter-terrorism activities across the public and private sectors.
First, AMWA, with financial support from EPA, will have made significant progress in developing
an Information Sharing and Analysis Center (ISAC), which uses a secure web-enabled system that
allows utilities to share threat information with the  FBI and other utilities. The ISAC is scheduled
for completion in  May 2003.   Second,  EPA and its partners will have disseminated effective
guidance for remedial plans in the case of a terrorist act. Third, education and awareness programs
will  continue  so  that  water  systems  personnel  are fully  knowledgeable  of approaches to
vulnerability assessments  and appropriate  remedial  actions.   Finally, financial and  technical
assistance will have been provided to the  360 largest drinking water systems to identify and correct
-vulnerabilities to potential terrorist attacks;  most will have completed their assessments and begun
taking remedial action and enhancing their emergency response plans.

       Resources support development of tools and training materials to assist drinking water and
wastewater  utilities in conducting vulnerability assessments  and developing  emergency operating
plans. Resources also support vulnerability assessments by drinking water utilities, and where such
assessments have been completed,  support other  security  planning  and measures.   Resources
support State counterterrorism coordination to work with drinking water utilities on infrastructure
security  measures. Finally, resources support  determining  appropriate technologies  to identify
threats and remediate consequences of attacks.

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 Setting Drinking Water Standards

       One of the Agency's fundamental responsibilities is to establish standards that protect public
 health from  contaminants  in drinking water.   Consistent with both the authority and direction
 included  in  the SDWA, EPA fulfills this important responsibility by  setting  national primary
 drinking water standards.  The 1996 SDWA Amendments included the requirements that drinking
 water regulations  be based on sound science and health risk assessments, and that priorities be
 developed based on relative risks and health effects data. In addition, the Amendments require EPA
 to periodically evaluate the effectiveness  of existing health-based standards in  protecting public
 health.

       The 1996 Amendments acknowledge the significant risk management challenge posed by
 microbial  contaminants (i.e., bacteria, viruses and protozoa) in drinking water.  This  challenge
 remains  despite widespread disinfection practices and  major public health advances  of the 20th
 century.   Some pathogens, such as Cryptosporidium, are highly resistant to standard  disinfection
 practices.  In addition, disinfection itself poses human health risks,  because disinfectants are unsafe
 at  certain concentrations,  and can react  with naturally-occurring elements in  water to  form
 unintended "disinfectant byproducts"  or DBFs.  The 1996 SDWA Amendments require EPA to
 develop a set of regulations, called the Microbial- Disinfection Byproducts (M/DBP)  rule cluster,
 that balance reducing the health risks from pathogens with limiting exposure to DBFs.

       In FY 2003, EPA will complete its efforts related to the M/DBP rule cluster  through the
 -promulgation of the Long-Term  2 Enhanced  Surface  Water Treatment  (LT2)  rule,  the Ground
 Water Rule  (GWR), and the  final Stage  2 Disinfection/Disinfection Byproducts  (Stage 2) rule.
 These rules  will expand human health protection against DBFs and microbial pathogens.  LT2
 requires public water  systems at greater  risk of microbial  contamination to  install  additional
 treatment  for  Cryptosporidium,  a   pathogen  which  causes  the   gastrointestinal  illness
• cryptosporidiosis.  It is estimated that LT2 will prevent 53,000 to 542,000 cases of cryptosporidiosis
 annually, resulting in an estimated reduction of 10 to 104 cryptosporidiosis associated deaths.  EPA
 expects that  LT2 also will reduce pathogens that co-occur with Cryptosporidium, such as Giardia.
 The GWR establishes multiple barriers to protect ground water sources of drinking water against
 contamination by  bacteria and viruses, and includes a targeted strategy to identify ground water-
 based systems at high  risk for fecal contamination.  Stage 2 will further mitigate potential health
 risks of cancer, developmental and reproductive effects from exposure to DBFs. Consistent with
 the  1996 Amendments, EPA will promulgate LT2 and Stage 2 together to ensure that drinking
 water systems are able to  protect consumers from pathogens and DBFs concurrently.  With the
 issuance of the Ground Water and LT2/Stage2 regulations, the Agency will have completed nearly
 all rules - both microbial and chemical - that were specifically identified in the 1996 Amendments.
 The TCR/Distribution rule, under the statutorily mandated six-year review process discussed below,
 will be proposed in 2003 and promulgated in 2004.

       While  regulatory  development for specific  contaminants cited in the  1996 SDWA
 Amendments will be  phasing out, the Agency will be involved  in implementing the  unique
 provisions of the  Amendments that make  risk prioritization the basis on which the  selection of

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contaminants to regulate is made. Pursuant to the SDWA Amendments, the Agency must develop a
Contaminant Candidate  List (CCL) to aid in regulatory  priority-setting for the national drinking
water program. In establishing the CCL, EPA divided contaminants into three categories:  1) those
that are priorities for additional  research into health effects, treatment technology, or analytical
detection methods; 2) those which need additional occurrence data, and; 3) those which require a
regulatory determination.  To  support its efforts to set regulatory priorities, EPA is  engaged in
ongoing evaluation and analyses of the occurrence of chemical and microbiological contaminants in
source  water;  outbreaks  of disease/illness  for  microbiological occurrence;  dose-response
relationships for 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 specified contaminants. On the basis of
these  analyses, the Agency determines whether to regulate at least five contaminants on the CCL
every five years.  EPA is required to publish the second CCL (CCL2) in the Federal  Register in
August 2003.  In support of the  development  of the CCL2, the Agency called upon the National
Research Council (NRG) of the National Academy of Sciences to recommend a better methodology
for screening and classifying contaminants being considered for future  CCLs.  EPA is evaluating
the feasibility  of adopting the NRC's recommendations as it proceeds to  develop  the CCL2.
Among the  areas the Agency is  considering for improvement are:  1) involving stakeholders and
encouraging public participation in CCL2 development, 2) determining how contaminants from the
CCL1  will  be  reflected on the  CCL2,  3) choosing the appropriate  criteria for  screening and
classifying contaminants, and 4) increasing the identification and analysis of ongoing and emerging
research to address occurrence issues, health effects, treatment technologies, and other issues that
are central to implementing the new regulatory development approach set forth in the 1996 SDWA
Amendments.   In conjunction with rule making activities, EPA is working on identifying and
developing methods for  evaluating the health benefits associated with drinking water regulations.
One or more CCL chemicals will be used as a prototype for methods development.

       EPA is adopting  a strategy for future actions to integrate and extend its current programs to
reduce adverse impacts  of microbiological contaminants in water.  Specific goals of the  strategy
include identification of ongoing activities and enhancing our involvement in several areas: using
mandates of the CWA and SDWA to provide an integrated approach to public health protection;
developing analytic tools to identify and monitor for known and emerging pathogens; identification
and control  of pollutant sources  so that  waters will meet protective use criteria; coordination of
regulatory and research activities, and; participation of public agencies and stakeholders.

       The  1996 SDWA Amendments also require EPA to review and, if appropriate, revise  all
existing primary drinking water  regulations no  less frequently than once every six years.  Any
revisions to  existing drinking water regulations must maintain or increase the level of public health
protection provided.  EPA may, however,  identify changes  that reduce existing regulatory
requirements without lessening the level of public health protection. As a part of this effort, EPA
has developed  an overall protocol for the six-year review process.  This protocol requires the use of
the best available, peer-reviewed data on occurrence and associated health risks,  state-of-the-art
analytical methods, and review of the best available treatment technologies. By August 2002, EPA
will have completed its review of 67 National Primary Drinking Water Regulations (NPDWRs) for
inorganic, synthetic organic, and volatile organic chemicals regulated prior to 1996, at which time it

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will publish a Federal Register notice that lists which contaminants will be subject to revision, and
their regulatory schedule. In FY 2003, EPA will begin to revise NPDWRs listed in August 2002.
In revising the regulations, the Agency will examine the best available scientific data,  conduct
sound risk assessments, and weigh the costs and benefits of proposed changes to ensure that the
NPDWRs continue to provide the most feasible level of health protection for Americans served by
public water systems.

       In addition to completing the six-year review for 67 NPDWRs for chemical contaminants,
the Agency will conduct separate reviews of the total coliform and atrazine regulations.  In FY
2003, EPA anticipates  developing a proposed "Total Coliform  Rule (TCR)/Distribution System
regulation  as  agreed to in the  September  2000  Federal  Advisory Committee Act (FACA)
Agreement in Principle. The FACA Committee, convened to advise .the Agency in the development
of the LT2/Stage 2 regulations,  recognized  the  significant health risks  from exposure  from
contaminants as a result of cross connections and backflow in aging distribution systems. Given
these health risks, the FACA recommended that EPA begin a separate review of the TCR in January
2001 that will conclude in FY 2002.  EPA anticipates that revisions to the TCR will streamline the
monitoring and reporting requirements for drinking water systems, and the Distribution System part
of the rule will protect consumers from health risks associated with the contamination of finished
water.

       As part of the six-year review process, and in response to the Children's Health Advisory
Committee's (CHAC) recommendations, EPA has committed to a review of the atrazine rule in FY
2003. The CHAC recommended a review of the atrazine regulation given new information on the
hormonal and developmental effects in children exposed to this pesticide.  The review schedule for
atrazine is on a separate track from the other NPDWRs to accommodate the risk assessment being
done by the Agency's Office of Pesticide Programs.

       The Agency recognizes that voluntary initiatives are effective complements to regulatory
approaches to protecting public health.  In FY  2003, the Agency will continue its work with states
and systems in both the Partnership for Safe Water and the Area-Wide Optimization Program to
improve the ability of systems to implement the M/DBP regulations.  Although these two initiatives
share a  common goal, to optimize the performance of drinking water treatment through effective
filtering processes, they have very different approaches. Under the Partnership for Safe Drinking
Water, EPA directed its efforts on providing tools to large/very large systems to help these systems
lower turbidity  levels in their drinking water and thereby reduce human health risk from microbial
contamination.  In its five years of operation, the Partnership has been very successful.  Over 200 of
the nation's 360 very large public water systems (serving over 100,000 people) that provide water to
over 58 percent of the  U.S. population are members and are carrying out various phases of the
Partnership for Safe Water activities.  We  expect that this number will increase as more  large
systems join this collaborative effort.

       In contrast to the Partnership, EPA has designed the Area-Wide Optimization program, or
AWOP, as an initiative with states to identify and work with drinking water systems that need to
improve their treatment  performance.  The Agency has developed a comprehensive performance
evaluation (CPE) that  assesses systems' capacity  to address and apply appropriate treatment

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methods to address human health risks associated with their drinking water supplies. In FY 2001,
this initiative was tested in selected states in two EPA Regions. EPA staff worked directly with
drinking water staff of the "pilot" states in  both conducting CPEs of the drinking water systems
within the state and prioritizing technical assistance to these systems based on health risk. The pilot
has demonstrated the potential effectiveness of this initiative, which will be  expanded in both FYs
2002 and 2003.  By the end of FY 2003 we expect that the AWOP will be implemented in the states
within at least five Regions.

Implementing Drinking Water Regulations

       Under the SDWA, EPA is responsible for assisting states and drinking water systems in the
implementation of drinking water programs to ensure the provision of safe, reliable and adequate
drinking water supplies. The Agency provides technical assistance and training to state agencies to
maintain and enhance state capacity to  implement drinking water programs.  EPA also works
closely with  states to: ensure proper certification of water system operators; promote consumer
awareness  of the safety  of drinking water supplies; maintain a national  database for program
management  and the  development of regulations, trends analyses, and public  information, and;
target technical assistance to small and disadvantaged systems to maintain their capacity to comply
with regulations.  For states and  Tribes that do not have  primary enforcement  responsibility
(primacy) for implementing drinking water regulations, the Agency also directly implements  the
drinking water program.

       To  ensure the long-term viability of the national safe drinking water program, the 1996
Amendments require  states to develop  capacity development strategies to help drinking water
systems improve their financial base, management practices,  infrastructure, and operations. EPA
support of states' capacity development strategies directly affects public health outcomes, as these
strategies provide a comprehensive framework for ensuring that systems maintain and enhance their
ability to comply with drinking water standards. States use these strategies to determine how best to
target limited resources to drinking water systems, especially small systems, that are in  need of
technical, financial or managerial support. For example, states may help systems prepare business
plans in anticipation of future growth, train system operators on how to detect leaks in distribution
systems,  and establish water rates that recover the  costs of providing safe drinking water at a
reasonable expense to consumers.   By the end of FY 2002, states will have had two years of
experience implementing their capacity development strategies. In FY 2003, EPA will work with
states to review progress in implementing  their  strategies, consider mid-course corrections,  and
jointly evaluate lessons learned. The Agency also will continue to work closely with primacy states
to ensure that they adopt recently promulgated regulations and implement them effectively.  By the
end of FY 2003, 53 states/territories will have adopted the Microbial and Disinfection Byproducts
rules  as well as  the Consumer Confidence  Report rule, all of which  were promulgated in 1998.
Twenty-eight states/territories will have adopted the Public Notification rule,  and 15 states will have
adopted the Lead and Copper rule revisions.
       1 As of 2001, only Wyoming and the District of Columbia do not have primacy.

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       In the 1996 SDWA Amendments,  Congress recognized that in comparison to larger
systems, small water systems (those  serving fewer than 3,300 persons)  face  greater financial,
technical and managerial barriers to providing safe and affordable drinking water. To address these
barriers, the Amendments include a number of statutory provisions that direct EPA and states to
help small communities comply with drinking water standards.  These provisions are designed to
ensure that every public  water system has the sustainable capacity to carry  out its public health
responsibilities. States, EPA and local utilities have made good progress toward this objective, but
small systems continue to have difficulty meeting new regulatory requirements. And in the near
future, small systems will face additional challenges in implementing drinking water standards for
microbial contaminants, arsenic and radon.  These  challenges include  addressing high treatment
costs, implementing complex treatment technology, and increasing their capacity to monitor and
improve performance.

       In FY 2003, the Agency will  implement a two-part approach to assisting small systems.
First, the Agency will expand and accelerate current efforts to assist small systems in enhancing
their technical, financial, and managerial capacity. This expansion includes both improving states'
ability to help small systems, as well as EPA's direct assistance to small systems.  Under this
approach, EPA will give higher priority to those states in which a disproportionate number of small
systems are  affected by any given rule.  The Agency will continue efforts begun in 2002 to assist
states and small systems in the implementation of the new arsenic in drinking water standard. In FY
2003, EPA will provide guidance to small systems in the use of effective, practical  and affordable
treatment technologies.    In  addition, the  Agency  will  provide compliance manuals, capacity
development tool kits and other useful training materials to improve states' ability to ensure that
small systems have the technical, financial and managerial capacity to comply with the new arsenic
standard.

        Second, the Agency will expand the AWOPs described above, with a special emphasis on
small systems to improve their performance in meeting drinking water standards. Currently, in the
individual systems where AWOPs or individual components of AWOPs have been tested,  systems
have achieved performance levels sufficient to meet the tighter turbidity requirements of the Long-
Term Enhanced Surface Water Treatment Rule (LT1ESWTR). Based on this success, widespread
application of AWOPs or their components is expected to enhance significantly the ability of small
systems to meet the requirements of future microbial regulations, e.g., LT2 and Stage 2 D/DBP.

        Safe drinking water regulations protect public health only if systems are able to implement
them properly. The operator certification program is one tool in ensuring effective implementation.
In FY 2003, all 50 states and Puerto  Rico  will have approved  operator certification  programs in
place and between 25-30 states/territories  will  have received EPA's  approval to receive  their
Operator Certification Expense Reimbursement Grants.2  These grants reimburse states for the cost
of training and certifying operators of community and non-community water systems serving 3,300
or fewer persons. The Agency also will continue to work closely with Tribes in 2003 to assist them
2      As was the case in 2001 and 2002 ($30M, respectively), the Agency will set aside resources from the DWSRF
in 2003 ($30M) 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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in training  and  certifying  water operators  of  systems  providing drinking water  to Tribal
communities.

       The nation's  over 54,000  community  water systems also must continually upgrade their
infrastructure to maintain their capacity to provide  safe, reliable and adequate water supplies to the
public.  Many systems, however, cannot afford infrastructure improvements  without significant
public financing.   The 1996 Amendments require EPA to administer the Drinking Water  State
Revolving Fund (DWSRF) to ensure that states and Tribes make infrastructure  improvements, and
maintain their capacity to implement regulations.   The DWSRF provides financial assistance to
public water  systems through revolving loan  funds for water systems to upgrade their drinking
water infrastructure.   In addition, the DWSRF provisions target financial support to  small and
disadvantaged communities in two ways. First, interest rates for loans to  small and disadvantaged
communities  may be  as  low as 0  percent  over a repayment period  of 20 years  for small
communities, and up to .30  years for disadvantaged communities.   In addition, each state  must
provide a minimum of 15 percent of available funds for loans to small communities, and has the
option of providing up to 30 percent of available funds to state-defined disadvantaged communities.

       By the end of FY 2003, states and water  systems  will have established 3,000 assistance
agreements and initiated infrastructure improvements in 1,200 systems. In spite of the ongoing and
successful efforts  of EPA and states to ensure that systems continually upgrade their drinking water
infrastructure, current levels  of Federal  infrastructure financing fall far  short of national needs.
According to the  Agency's  2001  Drinking Water Infrastructure Needs Survey, the total 20-year
national infrastructure need is $150.9 billion, $31.2 billion of which is needed to ensure the
provision of safe  drinking water under existing and recently proposed regulations.  This need is
even more pressing in the face of the projected increases in population growth  and the subsequent
increase in demand for safe drinking water over the next several decades.

       Maintaining Tribal drinking  water infrastructure  remains  a significant  implementation
challenge. Fifty percent of all Alaska Native villages to do not have drinking water systems, and 40
percent of Navajo households are not connected to drinking water distribution systems and must
collect water by hand.  Tribal drinking water infrastructure needs are estimated  at $2.2 billion over
the next 20 years.  In FY 2003, the Agency will continue to work closely with federally recognized
Tribes to build and improve Tribal drinking water infrastructure.

       Water systems also must supply data on drinking water quality and compliance activities to
states  and  EPA  through the Safe Drinking  Water Information  System (SDWIS), the central
repository for data on compliance with drinking water regulations. SDWIS serves as the primary
source of national information on all SDWA requirements, and is a critical database for program
management  and  the development of regulations, trends analyses, and public information. In FY
2003 EPA will further improve SDWIS to help meet states' evolving information needs. First, EPA
will continue to work with states to implement the jointly developed Data Reliability Action Plan
(DRAP), a multi-step approach to improve the quality and  reliability of data in SDWIS.  Two
specific activities  that will be emphasized in FY 2003 are training courses for  SDWIS data entry,
error correction, and regulation-specific compliance determination and reporting requirements and
making SDWIS-state web-enabled to allow broader public  access to state-level drinking water

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information, and to simplify data entry for states.  Many states are converting from their existing
drinking water data information system and are adopting and/or using SDWIS-STATE.  SDWIS-
STATE is  the counterpart to EPA's  Federal drinking  water  information system, SDWIS-FED.
When SDWIS-STATE is fully utilized by a state, the  information it holds meets the Agency's
minimum data requirements and can easily be reported to EPA, thereby improving data quality and
accuracy. In 2003, the Agency expects that most states will be using SDWIS-STATE.

       EPA, in partnership with the states, will continue  its work to develop and refine information
modules for drinking water program activities not currently in SDWIS.  By the  end of FY2003,
EPA and members  of the drinking water  community  will have  established improved linkages
among states and EPA databases, increasing national capacity for data transfer between Federal and
state level-information systems.  EPA  and its partners also will have completed a SDWIS-module
for the Source Water Protection and UIC programs.  In FY 2003, states will begin  to adopt this
module for use with SDWIS-STATE.  Once integrated  with SDWIS, the modules will provide a
more comprehensive data set with which  to characterize the quality of the nation's drinking water
supplies.

       Finally, in FY 2003 EPA will begin to implement recommendations provided through an
extensive stakeholder assessment of information system enhancements that would better support the
management and operations of the national drinking water program. The long-term (2004) goals of
this strategy are to better align information systems with  currently unmet information needs created
by the SDWA Amendments.  These include CCL-driven regulatory development processes, 6-year
regulatory reviews and subsequent revisions, expanded source water assessment and protection
efforts, and emphasis on consumer awareness of drinking water quality,

       In addition to compliance information, drinking water systems must  also  provide their
customers with annual reports on the quality of the  drinking  water they provide.  These yearly
reports were a new requirement of the SDWA, as amended in  1996, and the Agency promulgated
the Consumer Confidence Report rule in 1998. Community water systems compliance with this
rule has been noteworthy; with very few exceptions, all systems have issued reports since 2000 and
with the small systems efforts described above, we expect that those very small systems that have
not issued a report will by the end of FY 2003. Systems are also adopting  and implementing the
requirements related to the Public Notification rule, i.e., notifying customers faster when drinking
water emergencies occur.

       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; individuals undergoing development - both in
utero and through adolescence  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.
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Safe Consumption of Fish and Shellfish and Recreational Waters

       Reducing exposure to contaminants in fish and shellfish and through contact in primary and
secondary recreational waters is a top priority for the National Water Program.  In 2003, 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 percent 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 implement programs for stratified monitoring and
public notification of beach closures when bacterial contamination poses a risk to swimmers; the
Agency has  established performance  criteria for use in state and Tribal beach programs as a
condition for receiving these grants. The Agency will also begin a process to work with other
Federal agencies to assist them hi developing a beach program consistent with the BEACH Act.
Also, the BEACH Act requires that protective water quality standards for bacteria must be in place
for coastal and Great Lakes waters  by  2004; the Agency will continue  the process of publishing
water quality standards for coastal states and Tribes that have not yet adopted standards based on
EPA's 1986 criteria for pathogens.

       Monitoring used by states in their fish and  shellfish 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,  in  cooperation with the Agency  for Toxic
Substances and Disease  Registry  (ATSDR),  On the health effects  of exposure  to selected
bioaccurnulative toxics. The nationwide survey of toxic  residues  in fish is  a top priority project
needed to identify the most prevalent contaminants in fish throughout the U.S. The Agency  will
support monitoring/modeling pilot programs that improve states' ability to predict and  address
contamination events at beaches.   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 bioaccurnulative 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 advisory programs that are consistent with published national  guidance.
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       To assure that the public has timely information on the quality of local beaches and fishing
areas, the Agency will continue to expand an Internet-based Federal information source called
Beach Watch on beach advisories and closings across the United States and the National Listing of
Fish  and Wildlife  Advisories on  fish  advisories.   Working  with  states,  Tribes,  and  local
governments, EPA will continue to expand the Beach Watch database to include information on
high-use fresh water beaches, including the location of nearby CSO outfalls, and fishing areas. We
will also add digitized maps of coastal and inland high-use beaches to the Internet database.  The
Agency will also operate a database  of pollution occurrences  at beaches  to conform with the
requirements of the BEACH Act of 2000, and begin the process of developing a list of discreet
coastal recreation waters adjacent to beaches or similar points of access.  Also working with states
and Tribes, EPA will continue to expand the National Listing of Fish and Wildlife Advisories to
include the fish tissue information that states and Tribes used to issue the advisories.

Research

       Considerable progress has been made over the past 20 years in providing a sound scientific
foundation for Federal regulations to protect the safety of the nation's water supply.  In FY 2003,
drinking water research will remain a  high priority for the Agency in recognition of the need for
new data, improved tools and cost-effective technologies for addressing both known and emerging
threats.  Specifically, EPA has committed to focus research and development efforts on more cost-
effective treatment technologies for the removal of arsenic from small community drinking water
systems. Arsenic work in this objective will be  conducted in concert  with related research and
development efforts  in Goal 5 and  Goal 8.  Research on chemicals and on microbial pathogens
found in drinking water remains a high priority for EPA because of the critical need to improve our
ability to assess and manage risks to the general population as well as to sensitive subpopulations.
The research provisions of the  1996 Safe Drinking Water Act (SDWA)  amendments highlight the
importance of this research for providing a sound scientific basis for regulatory decision making.

       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, including:  1) research  on sensitive subpopulations, adverse
reproductive outcomes and other potential health effects of drinking water contaminants; 2) studies
on disinfection by-products (DBPs), arsenic^ complex mixtures, and the  occurrence  of waterborne
disease  in the U.S.;  and  3) developing methods to improve water treatment and maintain water
quality in the distribution system.  A dual emphasis is being placed on: 1) chemicals and microbes
on the Contaminant Candidate List (CCL), a list of over 60 unregulated chemicals and microbes,
from  which contaminants are selected for future regulatory determinations; and 2) the development
of more cost-effective treatment technologies to help small systems meet the new arsenic standard.

       In FY 2003, exposure  research will  continue  to focus on the development of improved
analytical detection methods for measuring the occurrence of chemicals and microbes on the CCL.
Improved methods to detect and measure human exposure to  microbes will be developed and
applied  in human population exposure studies.  Results of these studies will help: 1) reduce the
uncertainty regarding multi-route and multi-source exposure; 2) determine whether microbes  that
may be the cause of waterborne disease are viable and infective; 3) evaluate the effectiveness of

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 current regulations and treatment practices; and  4) characterize the exposure conditions that are
 associated with adverse health effects, particularly for highly sensitive sub-populations (children,
 the elderly, and the immune-compromised).

        EPA's drinking water health effects research program in FY 2003 will continue to focus on
 laboratory, clinical, and field studies of selected high priority DBFs, arsenic, and contaminants on
 the CCL.  Studies of chemical contaminants on the CCL will seek to provide either screening level
 or more detailed information to support CCL regulatory determinations.  Laboratory research on
 selected DBFs will also examine their potential  carcinogenicity, as well as other toxic endpoints
 (e.g., neurotoxicity, immunotoxicity) of possible  concern.  Emphasis will be placed on studies to
 evaluate potential adverse reproductive outcomes, EPA will continue to evaluate the influence of
 source water quality, treatment technology, and demographic characteristics on waterborne disease
 in selected communities in the  United States.  Research will also include studies to establish dose-
 response relationships for priority pathogens,  to characterize pathogen virulence and the range of
 outcomes on infection, to evaluate the impact of host factors (e.g., immune status) on infection and
 disease, and to identify the etiologic agents responsible for waterborne diseases.

        Risk assessment research utilizes exposure and health effects information to characterize the
 magnitude and severity of risks associated with exposures to drinking water contaminants.  In FY
 2003, this research will continue to improve dose-response modeling for cancer and non-cancer risk
 associated with exposures  to DBFs (both single  chemical 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 morbidity
 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 in both
 endemic and  epidemic situations. These models will provide a quantitative description  of an
 infectious  disease process  and will contribute to the analysis of the human risk of infection and
 illness due to waterborne pathogens in drinking water.

        One  of the  challenges in providing  safe drinking water  lies  in  minimizing the  risks
 associated with DBFs while controlling microbial pathogens. In FY 2003, 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.   Work  to better understand  the effectiveness of various options  for controlling
• pathogens while minimizing DBF formation includes examining source water protection issues for
 pathogens (e.g., Cryptosporidiuni) and other contaminants.  Continuing efforts will also address the
 special needs of small systems with the goal of developing and demonstrating small-scale,  cost-
 effective treatment technologies for the removal of arsenic that are easily installed.

        EPA will  also focus research on determining the treatability of microbial and chemical
 contaminants on the CCL.   Distribution system research will target two main risk management
 options: 1) improving distribution system integrity to prevent contaminant intrusion,  backfiow and
 cross-connections from contaminated sources; and  2) improving  control, of distribution system
 conditions (e.g., treatment residuals, disinfectant residuals, residence time, mixing, piping materials,

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corrosion inhibitors) to minimize formation and release of pathogens and undesirable chemicals.
Research will also assess the impact of treatment practices on the quality of water in the distribution
system network and on the network itself.

FY 2003 Change from FY 2002

EPM

       (-$21,330,000) The FY 2003 Request is  below the FY 2002 Enacted budget level due to
       Congressional earmarks received during the FY 2002 appropriations process which are not
       included in the FY 2003 President's Request.

       (+$613,700) Resources, dollars and FTE, associated with rent are allocated in proportion
       to Agency-wide FTE located  in  each goal, objective.    Resources, dollars and FTE,
       associated  with  utilities,  security  and human resource operations are allocated in
       proportion to Headquarters FTE located  in each goal, objective.  Changes reflect shifts in
       FTE between goals and  objectives.   Resources,  dollars and FTE, associated  with
       contracts and grants are allocated in proportion to Headquarters' contracts and grants
       resources located in each  goal, objective.  Changes in these activities  reflect  shifts in
       resources between goals and objectives. (Total changes - rent:  -$3,569,400,  utilities:
       +$3,468,000,  Security: -$9,103,900. Nominal increases/decreases occurred in hitman
       resource operations, grants and contracts related activities.)
S&T
       (-$82,794,000)  This reduction reflects the completion of vulnerability assessments and
       enhancements  to  emergency  response plans in  FY 2002 to  protect critical  water
       infrastructure for the Nation's 360 largest drinking water systems.  This disinvestment also
       includes a reduction of 10 FTE (-$730,200) associated with these vulnerability assessments.

       (+$15,000,000) Work will involve vulnerability assessments for small to mid-size drinking
       water systems.

       (-$2,000,000) The  FY 2003  Request is below the FY 2002 Enacted budget level due to
       Congressional earmarks received during the FY 2002 appropriations process which are not
       included in the FY 2003 President's Request.
STAG
       (-$220,412,900) The FY 2003 Request is below the FY 2002 Enacted budget level due to
       Congressional earmarks received during the FY 2002 appropriations process which are not
       included in the FY 2003 President's Request.
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Research

S&T
       (+$4,000,000) These redirected resources from within Goal 2, Objective 1 will address
       drinking water research needs in the areas of health effects, exposure, risk assessment and
       risk management for microbial pathogens, and contaminants listed on the current CCL or
       those with potential to be placed on the CCL of the future.

       (-$4,000,000) These resources will be redirected within Goal 2, Objective 1 from arsenic
       specific efforts to other drinking water research needs.  There will be an offsetting increase
       in arsenic specific research funded under Goal 8, Objective  4 as part  of the National
       Environmental Technology Competition (NETC), which will foster the adoption of cost-
       effective  treatment technologies  for arsenic in small community drinking water systems
       through a competitive award process.

       (+$1,950,000) These resources will support arsenic specific  research and development
       efforts on more cost-effective treatment technologies for the removal of arsenic from small
       community drinking water systems.  This work  will include strategies for the acceptable
       control of water treatment residuals enriched with  arsenic.

       (+$1,317.6, +12.0 FTE) Resources will be redirected within the Objective  to conduct work
       on the drinking water Contaminant Candidate List microbial agents.  Planned research
       related to homeland security will conclude in FY 2002.

       (-$1,317.6, -12.0 FTE) Planned research related to homeland security in the areas of Water
       Supply Security and the qualitative analysis of biological agents will conclude in FY 2002.
       Resources will be redirected to conduct work on the drinking water Contaminant Candidate
       List microbial agents.

       (+$292,200, +3.2 FTE )  The shift of workyears  from Goal  2, Objective 3 to Goal 2,
       Objective 1  will assist in developing and improving  methods to detect  and measure
       microbes (e.g., CCL-related microbes) and developing analytical methods  for the detection
       and enumeration of viral, bacterial, and protozoan pathogens associated  with waterborne
       disease.

       (+$62,000, +0.3  FTE) This increase in resources will be used to coordinate EPA scientific
       participation in regulatory development with program offices on major rules.

       (-$7,800,100) The FY 2003 Request is $7,800,100 below the FY 2002 Enacted budget level
       due to Congressional earmarks received during the FY 2002 appropriations  process which
       are not included in the FY  2003 President's Request.

       (-$199,500) Resources in support of conducting laboratory microcosm or rnesocosm  studies
       to obtain data on the transport and survival of viruses in the subsurface using human  enteric

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         viruses  are  realigned  to  Goal .1,  Objective 2, Reduce  Emissions  of Air  Toxics for the
         purpose of developing additional dose-response assessments for mobile source air toxics.


Annual Performance Goals and Measures


Safe Drinking Water

In 2003        85 percent of the population served by community water systems will receive drinking water meeting health-based standards
              promulgated in or after 1998.

In 2003        92% of the population served by community water systems will receive drinking water meeting all health-based standards in
              effect as of 1994, up from 83% in 1994.

In 2003        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        85 percent of the population served by community water systems will receive drinking water meeting health-based standards
              promulgated in 1998.

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

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 2001        91 percent of the population served by water systems received drinking water meeting all health-based standards that were in
              effect as of 1994.

Performance Measures:    .                                   FY2001            FY 2002           FY2003
                                                            Actual             Enacted            Request
Population served by non-community, non-transient drinking                 92                 93                 93      % population
water systems with no violations during the year of any
Federally enforceable health-based standards that were in
place by 1994.

Percent of population served by community drinking water                   91                 91                 92      % Population
systems with no violations during the year of any Federally
enforceable health-based standards that were in place by
1994.

Population served by community water systems providing                                       85                 85      % Population
drinking water meeting health-based standards promulgated
in or after 1998.
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 2003        Enhance homeland security by securing the nation's critical drinking water infrastructure.

In 2003        Enhance protection of tribal health by increasing the percentage of tribal community and non-community water systems that are
               run by certified operators.

In 2003        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 homeland security by securing the nation's critical drinking water infrastructure.

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

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In 2001         69% of tribal community and non*transient non-community water systems have a certified operator.

In 2001         Protected human health and ensured compliance with health-based drinking water standards by initiating 822 DWSRF
               operations and having 1,876 assistance agreements to community and non-community drinking water systems.
Performance Measures:

DWSRF assistance agreements to community and non-
community drinking water systems, (cumulative)

Tribal community and non-transient non-community water
systems with a certified operator.

Percent of the population served by, and the number of
medium-sized (10,001 -100,000 served) community water
systems that have completed or are conducting vulnerability
assessments.

Percent of the population served by, and the number of, small
(fewer than 10,000 served) community water systems that
have completed or are conducting vulnerability assessments.

DWSRF projects that have initiated operations, (cumulative)
FY2001
 Actual
        1876


        69%
FY 2002
Enacted
       2,400


        70%
         822
       1,100
FY2003
Request
        3,000


        73%


  100%/3,416




  50%/25,100



        1,600
Agreements

Water systems


% pop/systems



% pop/systems


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

Rules for High-Risk Contaminants

In 2003         Ensure public health protection by identifying and studying potentially harmful contaminants in drinking water and developing,
               issuing, and revising regulations and/or guidance to limit exposure to contaminants found to be harmful to people.

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         Expanded public health protection through the promulgation of .arsenic, radionuclides, filter backwash, and made 9
               determinations whether or not to regulate potentially harmful contaminants from the CCL.
Performance Measures:

Number of health risk assessments started/completed for
contaminants that are potentially harmful to people.

Regulatory determinations for potentially harmful
contaminants.

Number of regulations and associated technical guidance
documents promulgated.

Number of regulations and associated technical guidance
documents proposed.

Number of regulations and .associated technical guidance
documents proposed/promulgated.

Regulations promulgated/proposed.
FY2001
 Actual
FY 2002
Enacted
                            1/4
                            2/6
FY2003
Request
                                                2/1
                                      Assessments

                                      Determinations


                                      Reg / Guide


                                      Reg / Guide

                                      Regs/guidances


                                      Regulations
Baseline:       By the end of 2000 an estimated 5 rules will have been promulgated.

Underground Injection Well Management

In 2003        Target implementation of U1C regulations to ensure low risk of contamination to source water resources.

In 2002        Target implementation of UIC regulations to ensure low risk of contamination to source water resources
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In 2001        Through the UIC program, EPA contributed to the protection of ground water sources of drinking water from potential
               endangerment by bringing 11,266 Class 1V/V wells under specific controls through permits or closure.
Performance Measures:

States that have formally adopted the Class V rule.

Class I V/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 1, 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)

Percentage of underground injection wells out of compliance
with a permit and/or rule authorized that are returned to
compliance in an appropriate and timely manner. (Classes 1,
II, and 111 only)

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.
                                               FY2001
                                                Actual
                                                      11,266
                                                       2,766
FY2002
Enacted
FY 2003
Request
                                                                              90



                                                                             125

                                                                             325
                             400
                                                                                                  90
                   States

                   Wells


                   Action

                   % Wells



                   Cesspools

                   Wells


                   % wells
                                       Wells
Baseline:       As of January 2000, no states had adopted the Class V Rule as the Rule was just finalized in December 1999.

River/Lake Assessments for Fish Consumption

In 2003        Reduce consumption of contaminated fish by increasing the information available to States, Tribes, local governments, citizens,
               and decision-makers.

In 2Q02        10% of the nation's river miles and 26% 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        9% of the nation's river miles and 23% of nation's lake acres have been assessed to determine if they contain fish and shellfish
               that should not be eaten or should be eaten in only limited quantities.
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)
                                                FY2001
                                                 Actual
FY 2002
Enacted
                                                          23
                                                       40/41
          26
          40
                                                                              10
FY 2003
 Request
          29
          45
                                                                                                11%
% lake acres
States/Tribes
                                       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. In the upcoming 2000 Report to
               Congress on the National Water Quality Inventory, 69% of assessed river and stream miles; 63% of assessed lake, reservoir, and
               pond acres; and 53% of assessed estuarie square miles supported their designated use for fish consumption. For shell fish
               consumption, 77% of assessed estuary square miles met this designated use.

Increase Information on Beaches
In 2003
Reduce human exposure to contaminated recreation waters by increasing the information available to.the public and decision-
makers.
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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 providing information on 2,354 beaches for which monitoring and
               closure data is available to the public and decision-makers.
Performance Measures:

Beaches for which monitoring and closure data is available to
the public at http://www.epa.gov/OST/beaches/.
(cumulative)

Number of eligible States that have started/completed
development of monitoring and notification programs
consistent with the BEACHES legislation.
FY2001
 Actual
FY 2002
Enacted
       2,354
       2,354
FY 2003
Request
       2,450
                                               15/5
Beaches
                                      States
Baseline:       By the end of FY 1999,33 states had responded to EPA's first annual survey on state and local beach monitoring and closure
               practices, and EPA made available to the public via the Internet information on conditions at 1,403 specific beaches.  In the
               upcoming 2000 Report to Congress on the National Water Quality Inventory, 72% of assessed river and stream miles; 77% of
               assessed lake, reservoir, and pond acres; and 85% of assessed estuarie square miles met their designated uses for recreation
               (primary contact).

Source Water Protection

In 2003         39,000 community water systems (representing 75% of the nation's service population) will have completed source water
               assessments and 2,600 of these (representing 10% of the nation's service population) will be implementing source water
               protection programs.

In 2002         Advance States' efforts to protect their surface and ground water resources that are sources of drinking water supplies.

In 2001         States arid community water systems increase efforts and programs to protect their source water resources, including ground
               wafer.
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 waterprotection programs.

Percent of population served by community water systems
(CWSs) that are implementing source water protection
programs.

Number of community water systems and percent of
population served by those CWSs that have completed their
source water assessments.

Number of community water systems and percent of
population served by those CWSs that are implementing
source water protection programs.
FY2001
 Actual
FY 2002
Enacted
       2,026
                           6,000


                              11


                           2,000


                               4
FY2003
Request
                                         75%/39,000
                                          10%/2,600
                                      People


                                      CWSs

                                      CWSs


                                      % Population


                                      CWSs

                                      % Population


                                      Percent/systems


                                      % pop/systems
Baseline:       EPA has defined implementation as undertaking 4 or more of 5 stages of source water protection. Nearly 264 million people are
               estimated to be served by CWSs in 2001,
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Research
Drinking Water Research

In 2003        The Office of Water will have data, methods, assessments, and technology evaluations necessary to make scientifically sound
               risk assessment and risk management decisions on unregulated drinking water contaminants of potential public health concern.

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 2002        Produce scientific reports to support the development of the nexl 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        EPA reduced uncertainties and improved 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.
Performance Measures:

Report on occurrence of CCL-related pathogens in source
and drinking water, such as mycobacterium and Aeromonas

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.

Assess risks from caliciviruses and Cryptosporidium as a
function of dose and host susceptibility.  Will aid in
evaluating treatment approaches to prevent disease.

Develop process-design recommendations for control of
Cryptosporidium and DBPs in ozone/chloramine treated
waters.

Produce a report on waterborne disease outbreaks in the U.S.
in 1999-2000, which will provide information on causative
agents, health effects, water quality and treatment issues.

Report on the occurrence of chemical by-products     from
alternative drinking water disinfection processes in water
treatment systems.

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.

Develop methodology to identify  and characterize H. pylori,
Cyclospora, caliciviruses and sources of human pathogens in
water.

Publish a technical report on  treatability of three chemicals in
the 1998 Contaminant Candidate  List to provide information
to the program office for use  in the regulatory determination.

Report on waterborne disease in the young and elderly in
Washington State community intervention study.

Provide report on hazard and risk characterization issues for
potentially susceptible subpopulations for chemicals on the
Contaminant Candidate List
FY2001
 Actual
FY 2002
Enacted
FY 2003
Request
                                                           report


                                                           studies




                                                           reports



                                                           report



                                                           report



                                                           report



                                                           report


                                                           journal article



                                                           method



                                                           report



                                                           report


                                                           report
Baseline:       The Safe Drinking Water Act Amendments of 1996 establish a process and timeline for EPA to make decisions about the
               regulation of waterborne pathogens and chemicals for which standards have not been previously established. The ability of EPA
               to identify potential candidates for regulation and to make scientifically .sound regulatory decisions is dependent upon the
               availability of adequate information concerning the assessment and control of these contaminants. The current list of
               unregulated microbes and chemicals, called the Contaminant Candidate List (CCL), includes over 60 contaminants.  The quality
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           and robustness of the data base on health effects, exposure and treatability of these contaminants is highly variable. Some
           microorganisms on the CCL, for example, lack suitable analytical methods that are necessary for determining their viability and.
           occurrence in drinking water samples. Basic information on the health effects of selected CCL chemicals are lacking, and the
           ability of conventional treatment technologies to remove or inactivate some of the contaminants has not been clearly established.
           Research conducted in support of this APG will provide new health effects and exposure data, analytical methods, risk
           assessments and technological evaluations on several high priority pathogens and chemicals. This will strengthen the scientific
           foundation for the next CCL and for future regulatory determinations on these contaminants.

Verification and Validation of Performance Measures

Performance Measure: Population served by community water systems with no violations during
the year of  any Federally-enforceable health-based  standards that were  in place by 1994 and
Population served by community water systems that will receive drinking water meeting health-
based standards promulgated in  1998.

Performance Database: Safe Drinking Water Information System (SDWIS or SDWIS-FED)

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 (QA) audits of the Office of Ground Water and Drinking
Water'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 and
will complete a QA audit for 1999-2001 data in FY 2002.  SDWIS was identified as an  Agency
weakness in  the Fiscal  Years 1999 and 2000 Federal Managers' Financial Integrity Report.  The
Data Reliability Action Plan (described below),  developed and implemented to  address corrective
actions  identified in 1999,  for SDWIS  was completed by the end  of FY  2001.   However,
EPA/states/stakeholders  have expanded on this  Plan through the development  of  an  Information
Strategy. This strategy, which could be considered Phase II of the Data Reliability Action Plan, sets
the direction  for a comprehensive modernization of SDWIS over the next three to five years.

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 monitoring-and-reporting requirements, and report those violations
through SDWIS.

       Recent  state data verification  and  other  quality assurance analyses indicate that the most
significant data quality problem is under-reporting  to EPA of 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

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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-spatial analysis, and 3)
integrate and share data with other data systems.

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, 2) specific DRAP analyses, follow-up activities and
state-specific technical assistance, and 3) web-enabling SDWIS-STATE for easier data entry by the
states.

       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 eliminating data conversion errors and
improving data quality and accuracy. In addition, a web-enabled version of SDWIS-STATE and a
data migration application that can be used by all states to process data for upload to SDWIS-FEDj
are currently being developed.  By the  end  of 2003, 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.

Performance Measure: Cumulative number of beaches for which monitoring and closure data is
available to the public  at http://www.epa.gov/QST/beaches/. and number of eligible states that have
started/completed  development of monitoring and  notification  programs  consistent with the
BEACH Act of 2000.

Performance Database:  National Health Protection Survey of Beaches Information Management
System. The database  includes fields identifying the beaches for which monitoring and notification

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information is available. The database also identifies those states that have received a BEACH Act
grant. This information is updated annually.

Data Source: State and local governments

QA/QC Procedures:  A standard survey form has been approved by OMB which is distributed by
mail in 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.
Those states receiving a BEACH Act  grant are subject to the Agency's grant regulations at 40CFR
31,45 which require states and Tribes  to develop and implement quality assurance practices for the
collection of environmental information; these procedures will help assure data quality.

Data Quality Review: EPA reviews the survey responses to ensure the information is complete,
then follows up with the state or local government to obtain additional information where needed.
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 mostly voluntary.  While
the voluntary response rate has been  high, it does not capture the complete  universe of beaches.
Participation in the.survey will become a mandatory condition of grants awarded under the BEACH
Act program (described below); however, state and local governments are not required to apply for
a  grant,   Currently the  Agency has data  standards but  procedures, methods, indicators, and
thresholds can vary between jurisdictions because to date this has been a voluntary program.  The
Agency expects the limitations to diminish as more states apply for BEACH Act grants.

New/Improved Data or  Systems:  With the passage of the BEACH Act of 2000,  the Agency is
authorized to award grants to states to  develop and implement monitoring and notification programs
consistent with Federal requirements.  As the Agency awards these grants, it will require standard
program procedures, sampling and assessment methods,  and data elements for reporting. To the
extent  that  state governments  apply for and receive these  grants, the amount, quality, and
consistency  of available data will improve.  In addition, the BEACH Act requires the Agency  to
maintain a database of national coastal recreation water pollution occurrences. The Agency will
fulfill this requirement by revising the current database to include this new information.  In revising
the database, the Agency will be investigating modes for electronic exchange of information and
reducing the number of reporting requirements.

Performance Measure:   Cumulative lake acres  assessed for the  need for fish advisories and
compilation of state/Tribal-issued fish  consumption advisory  methodologies; Cumulative River
miles assessed for the need for fish consumption advisories and compilation of state/Tribal-issued
fish consumption advisory  methodologies; states/Tribes  monitoring and conducting assessments
based on the national guidance to establish nationally consistent fish advisories.

Performance Database:  National Listing of Fish and Wildlife Advisories. The database includes
fields identifying the waters for which  fish consumption advisories have .been issued.  The EPA
Total Waters database is  used to calculate sizes for fish  advisories.  This information is updated

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continually as states and Tribes issue or "revise advisories.   Data are also available describing
methodologies used by states and Tribes for establishing advisories.

Data Source:  State and Tribal governments

QA/QC Procedures:  A standard survey has been approved  by OMB which is available on the
Internet for electronic submission.   A password is  issued to ensure the appropriate party is
completing the survey.  EPA has national guidance for states and Tribes to use for develop and
implement quality assurance practices for the collection of  environmental  information for  the
purposes of establishing and managing fish advisories. This guidance helps assure data quality.

Data Quality Review:  EPA reviews advisory entries and responses to the survey to ensure the
information is complete, then follows up with the state or local government to obtain additional
information where needed. However, the Agency cannot verify the accuracy of the voluntary
information 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 complete universe of advisories.

New/Improved Data or Systems:   A proposed enhancement to the system is the use of a GIS
procedure to  calculate the sizes of georeferenced advisories based on the National Hydrography
Dataset (NHD).  This procedure will provide size information for the vast majority of waterbody-
speeific advisories. In cases where the state has already provided information, the state's sizes will
be retained rather than replaced with results from the NHD calculations,

Coordination with Other Agencies

       The 1996 SDWA amendments include a provision that mandates a joint EPA/Centers for
Disease Control (CDC)  study of waterborne  diseases and  occurrence studies in public water
supplies,  CDC is involved in assisting EPA in training health care providers (doctors, nurses, public
health  officials, etc.) on public health issues related to drinking water contamination and there is
close CDC/EPA coordination on research on microbial contaminants in drinking water. EPA has in
place a Memorandum of Understanding (MOU) and Interagency Agreement (IAG) with the CDC in
the Department of Health and Human Services (DHHS) to implement this provision.

       In implementing its source water assessment and protection efforts, the Agency coordinates
many of its activities with other Federal agencies.  There are three major areas of relationships with
other agencies concerning source water assessments and protection.

Land management involves coordinating with the Department of Agriculture's (USDA's) Forest
Service;  the  Department of Interior's  (DOI)  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.
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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 in the 1996 amendments to the SDWA.

Data Availability. Outreach  and Technical  Assistance.   EPA  coordinates with  USGS  (US
Geological Survey), USDA (Forest Service, Natural Resources Conservation Service, Cooperative
State Research, Education, and Extension Service (CSREES), Rural Utilities Service); DOT, DOD,
DOE, DOI  (National  Park Service  and Bure'aus  of Indian Affairs, Land  Management, and
Reclamation); DHHS (Indian Health Service) and the Tennessee Valley Authority.

Collaboration with  USGS.   EPA and USGS have  identified  the  need to engage  in joint,
collaborative field activities, research and testing, data exchange, and analyses, in areas such as the
occurrence of unregulated  contaminants, the  environmental  relationships affecting  contaminant
occurrence, evaluation of currently regulated contaminants, improved  protection area delineation
methods, laboratory methods, and test methods  evaluation.  EPA has  an lAG with USGS  to
accomplish such activities.

       The Agency  also  has in  place  an  "umbrella" IAG  that  serves as the framework for
coordinating the various  source water-related activities in these many Federal departments and
agencies.

       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 & Drug 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 Disrupter 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 of fish.  EPA also cooperates with the NAS to develop a candidate list or
set of appropriate and scientifically defensible indicators or approaches to source water protection.

Research

       While EPA is the Federal agency mandated to assure safe drinking water, other Federal and
non-Federal entities are conducting research that complements EPA's research program on priority
contaminants in drinking water.  For  example,  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 is also being

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conducted by the Food and Drag 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
DBFs. 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,

       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 allows  for  real-time
measurement of the structural condition of infrastructure.  This 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

Safe Drinking Water Act
Clean Water Act
Toxic Substances Control Act

Research

Safe Drinking Water Act
Clean Water Act
Toxic Substances Control Act
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                Clean and Safe Water

Objective: 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)

Protect Watersheds and Aquatic
Communities
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$448,020,6
$193,598.5
$0.0
$36,625.8
$217,796.3
959.7
FY 2002
Enacted
$463,061.1
$189,431.4
$28.8
$41,478,8
$232,122.1
980.2
FY 2003
Request
$435,814.7
$162,894.0
$25.7
$38,592.9
$234,302,1
988.8
FY 2003 Req.
v. FY 2002 Ena.
($27,246.4)
($26,537.4)
($3.1)
($2,885.9)
$2,180.0
8.6
                                    Key Program
                                (Dollars in Thousands)

Administrative Services .
Chesapeake Bay
Congressionally Mandated Projects
Ecosystems Condition, Protection and
Restoration Research
Facilities Infrastructure and Operations
Great Lakes
Gulf of Mexico
Lake Champlain
Legal Services
Long Island Sound
Management Services and Stewardship
Marine Pollution
National Estuaries Program/Coastal
Watersheds
FY2001
Enacted
$1,558.8
$20,728.0
$47.558.1
$36,006.0
$15,814.9
$3,114.4
$4,341.2
$1,995.6
$3,019.0
$4,989.0
$3,571.1
$8,198.5
$20,151.9
FY 2002
Enacted
$0.0
$20,551.8
$33,107.4
$37,785.0
$13,213.9
$2,671.0
$4,261.6
$954.8
$3-462.8
$2,500.0
$4.222.7
$7.994.8
$24,521.3
FY 2003
Request
$0.0
$20,650.8
$0.0
$38,592.9
$13,851.3
$2,684.7
$4,327.4
$954.8
$3,755.0
$477.4
$4.571.2
$8,170.7
$19,246.2
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$99.0
($33,107.4)
.$807.9
$637.4
$13.7
$65.8
$0.0
$292.2
($2.022.6)
$348.5
$175.9
($5,275.1)
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Pacific Northwest
Regional Management
South Florida/Everglades
State Pollution Control Grants (Section 106)
State Water Quality Cooperative Agreements
State Wetlands Program Grants
TMDLs
Water Quality Criteria and Standards
Water Quality Monitoring and Assessment
Watershed Assistance
Wetlands
FY2001
Enacted
$1,078.6
$370.2
$2,942.0
$169,887.7
$18,958,2
$14,967.0
$20,594.5
$19,515.2
$11,811.0
$8,467.8
$17,651,0
FY 2002
Enacted
$1,003.8
$429.0
$2,648.3
$.192,476.9
$18,958.2
$14,967.0
$21,232.1
$18,782.4
$11,665.1
$7,821.6
$17,829.8
FY.2003
Request
$1,028.5
$450.5
$2,665.5
$180,376.9
$38,958.2
$14,967.0
$21,433.2
$19,127.2
$11,967.7
$9,479.1
$18,381.9
FY 2003 Req.
v. FY 2002 Ena.
$24.7
$21.5
$17.2
($12,100.0)
$20,000.0
$0.0
$20.1.1
$344.8
$302.6
$1,657.5
$552.1
 FY 2003 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  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 identify
those waters not meeting clean water goals, 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 water quality criteria, biological  criteria, nutrient  criteria, and easy-to-use,
geographically-based  models),  training,  and technical assistance  to support state  and  Tribal
TMDL programs.  Section 303(d) requires that approvable  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, including addressing the
elements outlined in EPA's monitoring and assessment guidance and Clean  Water Act (CWA)
Section 3Q3(d) requirements.  EPA will assemble and report state water quality assessments and
will continue to help  states consolidate their water quality reporting under sections 303(d) and
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305(b).   EPA  is integrating its  programs  for characterizing, assessing  and monitoring the
condition of the nation's waters. 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); we will also work with other Federal agencies to increase their use of 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.  The new Watershed Assessment,
Tracking and Environmental Results System (WATERS) unifies key water quality information,,
including water quality .standards and  status of impaired waters, and  allows users to map the
results for specific geographic areas.

    .  EPA, in concert with the U.S. Department of Agriculture (USDA), Department of Interior
(DOI) and other Federal agencies, will  work with the states, Tribes and territories to implement
watershed  restoration projects.   Working  through  the  National Water  Quality  Monitoring
Council, EPA is analyzing state and Federal water  quality monitoring and assessment programs
to quantify the improvements of these restoration projects.

      Critical to improving water quality is our refinement of water quality standards.  The
Agency will continue to support states and Tribes in incorporating risk  analyses, 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 access
information on the Internet and thus enable TMDL  developers and NPDES  permit writers to use
the most current information to better  address  site-specific conditions.  The Agency will also
provide  training to state and EPA staff to utilize BASINS in establishing  TMDLs and issuing
NPDES permits.

      EPA will work with its state partners to ensure that they adopt into their standards .of
criteria to protect designated uses into their standards.  In 2003, 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 accelerate the  adoption  of biological criteria, designed to control
nutrients and disease-causing microorganisms, into state and Tribal water  quality standards by
developing needed guidance materials and supporting state/Tribal program implementation. The
Agency will also continue to develop and enhance  PC-based modeling software to support site-
specific metals criteria and non-point source loadings.
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       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 2003, EPA will continue to implement strategies necessary to take action
on state  water quality  standards within the statutory deadlines.  In support  of this  effort, the
Agency will continue to make available and expand on the Internet a comprehensive  repository
of 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 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 and other  public health
concerns.  Since  the process for assessing and  controlling eutrophication is considered to be
Regional in nature, the best assistance will involve the states and Tribes in choosing the tools
that  best fit  their conditions  (waterbody type-specific guidance).   The Agency  will publish
technical ecoregional guidance documents  for nutrient indicator  variables  (e.g., total nitrogen,
total phosphorus,  chlorophyll-a, and clarity) and help states and Tribes  tailor  their nutrient
criteria to their waterbody  types and geographical Regions.  EPA  will award grants to states,
local governments, and Tribes to help them implement Regional nutrient criteria and biological
criteria.  The Agency will further help them  develop and adopt appropriate water quality
standards.

       In support  of the  Agency's Tribal partnership efforts, the Agency will continue to help
train Tribes on basic water programs, including nonpoint source, watershed management, water
quality  monitoring, - and water quality  standards and criteria.   The  Agency will continue
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.  Improving  monitoring, standards, TMDL  development of
point source  and  nonpoint source  activities will result in greater state flexibility  for targeting
TMDL implementation efforts, resulting in more cost-effective and efficient solutions to restore
impaired waters.   EPA is bound by  court orders and consent decrees requiring  state TMDL
development, with an EPA backstop, for over 20  states in FY2003. EPA will continue to support
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the Watershed Academy and its course -offerings and technical transfer efforts to better train
state, Tribal and local agencies in addressing these watersheds.

       In 2003, EPA will increase funding to work with state and Tribal partners to ensure that
water quality  standards  are effective and  appropriate for use in developing TMDLs.  The
National Research Council's 2001 assessment of the TMDL program found that the designated
uses and criteria in existing standards often need more detail and refinement before they can be
used as a firm basis for requiring load reductions through TMDLs.  Standards also may  not
protect  drinking water  sources adequately,  and may not reflect biological  assessments and
criteria.  To address these concerns and to implement the strategy, EPA will provide technical
guidance and  training that  will help states and Tribes conduct their own  use  attainability
analyses, and  to help refine and interpret standards  to ensure they are adequate for use in
developing load reduction targets. In addition, EPA conducted a customer-focused review of the
National Water Quality Standards program  and developed a long-term strategy that calls for
improvements and streamlining  in  EPA's program.  EPA will  also  accelerate the  technical
reviews necessary for EPA to approve new or revised state/Tribal standards on a timely basis for
use in TMDLs, including the biological evaluations of whether these standards provide adequate
protection to endangered species.

       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,  wetlands protection, NPDES permitting, TMDLs, and
source water protection. The Agency will work closely with other Federal agencies and partners
to integrate relevant  programs to  ensure a comprehensive approach to the protection and
restoration of rivers, lakes, wetlands 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
development and application of environmental indicators to assess status and trends in the NEPs,
as well as to measure success of implementation of priority action plans in CCMPs, including the
addition of 25,000 acres of restored habitat.  This increment, while ambitious,  is lower than in
previous years due to decreasing restoration opportunities following early years' successes. EPA
will emphasize and support coastal partnerships to assist local decision-makers in developing and
implementing protection programs for coastal watersheds, including assisting local governments
in developing and implementing watersheds smart growth principles.  EPA 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;
management  and  remediation of contaminated sediments; and  assessment of water quality
impacts of air deposition.

       For coastal ports and harbors, EPA will work with Federal and state partners  (e.g. the
National Dredging Team) and other stakeholders to establish and promote 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

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developed and implemented to maintain, restore, and improve the health of 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 of bioaccumulation risk  guidance to enable EPA Regions and
Corps of Engineers districts to reach decisions on the suitability of dredged material for open
water disposal,  development  of a guidance document on  implementation of  cost effective
beneficial use projects in the  context of watershed planning, 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 improved research and monitoring efforts in
coastal and marine waters.

       Through our Watershed Assistance Grants, EPA will continue providing small grants to
community partnerships working 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,  A major focus will  be  to  provide assistance  to organizations that are  developing
partnerships that will 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 help  fund key 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, $180,376,900 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 information.  State efforts funded by
section  106  grants will  include  activities related to the  restoration  of impaired  watersheds
(TMDLs) which will include all facets of this program, i.e., pre TMDL.needs such as monitoring
and  assessment  and  standards   development,  development  of TMDLs  and post-TMDL
implementation and restoration; 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.

       The  Agency is requesting $38,958,200 (an increase of $20,000,000) for Water Quality
Cooperative Agreements (WQCA). The increased resources will support an effort to implement
watershed restoration activities in a limited number of pilot watersheds (described below). Base
resources will  also provide for continued support in 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.

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Geographic Initiatives

       EPA will continue to support targeted  geographic watershed initiatives  of national
importance, including the NEP, the Chesapeake Bay Program, Gulf of Mexico Program (GMP),
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, the Lake  Champlain Management  Conference and Lake
Ponchartrain requirements in the Estuaries and Clean Waters Act of 2000. This Act authorizes
EPA to support restoration of the' ecological health of the Lake Pontchartrain Basin through
development  and funding of restoration projects and  related scientific  and  public education
programs.

       The  new Targeted  Watersheds  Project will  provide direct  grants to  watershed
stakeholders ready to undertake immediate action.  Modeled after successful existing programs
such as the efforts to restore the Charles River, targeted inland and coastal watersheds will be
chosen  based  on.criteria established in consultation with state, local and other  stakeholder
partners, with emphases on value of the resource,  likelihood of positive environmental outcomes,
evidence of strong  state/local government support, ability  to leverage agency resources,  and
readiness to proceed based on  existing problem  identification.   Expected  benefits include:
additional places and times that waters could be used for boating, fishing,  and swimming;
restoration, protection, or creation of terrestrial and aquatic habitat; economic benefit  (e.g., re-
opening shellfish beds, improved public access to waterfronts and other highly valued resource
areas); protection of groundwater aquifers; protection and increase  in number of acres of open
space; and enhanced flood protection.

The Gulf of Mexico

       The Gulf of Mexico Program (GMP) is a consortium of organizations  working together
to initiate cooperative actions by public and private  organizations to  restore,  protect,  and
maintain the Gulf of Mexico ecosystem in ways consistent with the economic  well-being of the
Region.
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                                                 Targeted At^afclof SUP Assistance *
                                                 (Red Text Indicates NEfsj
       The GMP works closely with the five Gulf
States,  Gulf coastal  communities,  citizens,  non-
government  organizations, and  Federal agencies to
achieve specific environmental results. These include
by 2009:  assisting the states in  restoring  over  70
impaired coastal water bodies in  12  priority coastal
areas  and restoring or protecting 20,000 acres of
important coastal and marine habitats.
       The  GMP  provides  direct  technical  and
financial  assistance  to   the   Gulf  States,   local't
governments, and non-profit organizations.  In fiscal'
year 2003, the GMP 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, and to protect, enhance, or restore 2,400 acres of important coastal and
marine habitats that are essential for sustaining the Gulfs fisheries.

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
         20
         15
      CO
      S  10
                                Gulf of Mexico Program
                             Acres Restored/Protected
                                               £.,<•
                                                                   K-.,

                                                                           *4"'
                                                                   L,:.,,,,,
          0  e-m
              2000  2001 2002  2003  2004 2005 2006  2007 2008 2009
                                        Fiscal Years          C Goal  • Actual
                                         11-46

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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).

       In June 2000, the Chesapeake 2000 agreement, 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, and is the most comprehensive and far-reaching
agreement in the Bay Program's history.  The primary  goal of the new agreement is to remove
nutrient and sediment impairments 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 reduction goals
Baywide.

       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 agreements or Executive Council directives.

Wetlands

       In  April 2001,  President  Bush  endorsed regulations to  protect  wetlands and  the
Administration committed to "continue to take responsible steps to ensure that we can preserve
these vital natural resources  for  future  generations of Americans." EPA and other Federal
agencies are working with partners towards the national goal of an annual net gain of wetlands of
100,000 acres  by 2005.  This will reverse historic trends of wetland  losses and restore some of
the 54 percent of the nation's wetlands already drained or filled.  EPA  will contribute to this
wetlands  quantity  goal  by helping to improve compensatory mitigation success,  supporting
wetlands restoration efforts, and  building state and Tribal capacities to monitor and protect
wetland resources.

       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 under 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 and
will be implementing recommendations  from the National Academy of Sciences and GAO
Reports that were released in 2001.

       EPA will also take steps to advance the national  goal of an increase in the  quality of
wetlands.   Many remaining  wetlands are degraded by  stressors including polluted  run-off,
changes in hydrology, invasive species, and habitat fragmentation.  Information on the health of
wetlands  is important to set priorities  and to identify corrective actions.   Building upon
successful projects in a number of states, EPA will help states and Tribes develop programs to

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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 technical assistance and training in low-cost monitoring techniques, including volunteer
monitoring and remote imagery. The information collected will guide management decisions to
evaluate restoration success and to improve the quality of wetlands.

       A  total of $14,967,000 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. This will support regulatory approaches as
well as incentive-based programs, training, and monitoring.  EPA will also provide assistance
for projects that restore Wetlands and rivers with an emphasis on community-level education.

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  significant
scientific  uncertainty associated with the resiliency of aquatic  ecosystems and their biotic
components.  Research in this objective  will demonstrate integrated and  stake-holder  driven
approaches to achieving water quality goals, as well as focus on the development  of watershed
diagnostic methodls, on understanding the importance of critical habitats, and on 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.

       In FY 2003 EPA research on diagnostic  methods will focus on the causes  of biological
and aquatic ecosystem impairment.  This work will be useful in deriving criteria to protect and
•strengthen the biological basis for designated uses in state and Tribal water quality standards,
improving the scientific foundation  for addressing point and non-point source water quality
impairment,  and determining appropriate and  effective watershed  management alternatives.
Specifically,  this research  will  provide:  (1)  the  scientific  foundation  and  information
management scheme for the 303(d) listing  process,  including a  classification framework for
surface waters, watersheds, and regions to guide problem formulation; (2) first  generation
diagnostics methods to distinguish among major classes  of individual aquatic stressors  and/or
suggest causal mechanisms that contribute to impairment of marine and freshwater systems; and
(3) diagnostic methods and technical support  documents for determining the relative significance
of multiple stressors  in 303(d) listed waters. Technical guidance and assistance will also be
provided  to  states to promote the  establishment  of scientifically  sound bioassessments 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

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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, credible 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  creating "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.  The current focus of this work is on the management of
suspended solids and sediments  and the  management of  stressors  from  Animal  Feeding
Operations and biosolids activities. 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.   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 sediments are a natural part of aquatic ecosystems critical
to the energy cycle of the water body and the provision of microhabitats, they have become
stressors associated with human activity that adversely affect aquatic habitats.  In 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 suspended solids and sediments, water resource managers need scientific
tools  that are  currently not available.  In FY 2003, EPA's suspended  solids  and sediments
research program  will continue to develop tools to  determine  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 to maintain suspended solids and sediments at background levels.
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       Chemical stressors also impact aquatic life, the benthic community, wildlife, and human
health.  The research focus in this area is to develop scientifically defensible methods to better
describe the risks  of toxic chemicals  to aquatic and  aquatic-dependent  populations  and
communities.   Specific goals are to: (1) demonstrate methods for water quality criteria for
bioaccumulative and non-bioaccumulative chemicals based on more complete and accurate risk
characterization of toxic chemicals to aquatic organisms; (2) provide methods for water quality
criteria based on population-level risk characterization  of toxic chemicals to aquatic  life and
aquatic-dependent wildlife; (3) provide methods for extrapolating chemical toxicity data across
exposure conditions and across endpoints, life stages, and species which can support assessment
of risks to aquatic life and aquatic-dependent "wildlife for chemicals with limited data; and (4)
provide approaches for evaluating the relative  and cumulative risks from toxic chemicals on
populations of aquatic life and aquatic-dependent wildlife at site-specific to regional scales.

FY 2003 Change from FY 2002

EPM

(+$1,000,0007+10  FTE)   This increase  will provide internal  support  for the  new  Targeted
Watersheds Project, (see STAG account, below).  Additional staffing will be critical to ensuring
the proper and efficient execution of this new grant program.

(+$1,750,000) This increase will support restoration projects,  scientific programs and public
education activities under the Chesapeake Bay Program.

(+$1,000,000) This increase will support restoration projects,  scientific programs and public
education activities relating to Lake Pontchartrain,  as authorized in the  Estuaries and Clean
Waters Act of 2000.

(-$32,966,200)  The FY  2003 Request is  below the FY 2002 Enacted budget level due to
Congressional earmarks  received during the FY 2002  appropriations process which are  not
included in the FY 2003 President's Request,

(+$1,039,000)  Resources,  dollars and  FTE, associated with rent are allocated in proportion to
Agency-wide FTE located in each goal, objective.   Resources, dollars and FTE, associated with
utilities, security and human resource operations are allocated in proportion to Headquarters FTE
located in each goal,  objective.   Changes reflect shifts  in FTE between goals and objectives.
Resources, dollars and FTE, associated with contracts and grants are allocated in proportion to
Headquarters' contracts and grants resources located in each goal, objective.  Changes in these
activities reflect shifts in resources  between goals  and  objectives.   (Total changes  - rent:  -
$3,569,400,  utilities:  +$3,468,000,   Security:   -$9,103,900.   Nominal  increases/decreases
occurred in human resource operations, grants and contracts related activities.)
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S&T

(-$1,500,000) The FY 2003 Request is below the FY  2002  Enacted  budget level due to
Congressional  earmarks received during the FY 2002 appropriations  process which are not
included in the FY 2003 President's Request.

STAG

(-$12,100,000) This  reduction  to the  CWA Section 106 grant account  partially  removes an
unrequested FY 2002 increase and results in a $10,500,000 increase over the FY2002 President's
request.

(+$20,000,000) This  increase will  provide funding to the Targeted Watersheds Project, a new
program to provide grants to watershed stakeholders ready to implement  watershed restoration
efforts in a discrete set of priority  watersheds.  Targeted watersheds will be chosen based on
criteria established in consultation  with our state, local and other stakeholder partners, but will
emphasize value of the resource, likelihood of positive environmental outcomes,  evidence of
strong state/local  government support, ability to  leverage agency  resources and readiness to
proceed based on existing problem identification.

(-$5,720,000) The FY 2003 Request is below the FY  2002  Enacted  budget level due to
Congressional  earmarks received during the FY 2002 appropriations  process which are not
included in the FY 2003 President's Request. .

Research

S&T

•      (+$65,800, + 0,3 FTE)  This  increase  in resources  will be used to  coordinate  EPA
       scientific participation in regulatory development with program offices on major rules.

        (-$2,193,800) The FY 2003 Request is $2,193,800 below the 2002 Enacted budget due
       to the Congressional earmarks received during the appropriations process which are not
       included in the 2003 President's Request.

Annual Performance Goals and Measures

Assessments of Designated Uses
In 2003     Assess, restore and protect watersheds.
In 2002     Assess, restore and protect watersheds.
In 2001     Assessed 132.1 river miles/lake acres, and 6,057 square estuary square miles that have water quality supporting designated uses,
          where applicable, for drinking water supply.
In 2001     Continued to restore and protect watersheds through implementation of over 2,300 TMDLs.
Performance Measures:                             FY2001         FY 2002        FY 2003
                                             Actual          Enacted        Request
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Performance Measures:

Assessed river miles/lake acres/estuary square miles that
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 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)
  FY2001
   Actual
      132K/6M
  174K/5M/7K



269K/10M/18K



           870

         3,826
 406K/9M/11K



         2,882

         2,872
FY2002
Enacted
    no target
     no target
     no target
         930
     no target
       6,000
FY 2003
Request
     no target       Mi/Acres
     no target       Mi/Acres/Sq Mi



     no target       Mi/Acres/Sq Mi



        1,245       TMDLs

                   TMDLs
     no target       Mi/Acres/Sq Mi



                   TMDLs

       9,200       TMDLs
Baseline:       From the upcoming 2000 Report to Congress on the National Water Quality Inventory, the miles/aces quantities reported in the
               FY 2001column translate into the following percentages of waters: 66% of assessed river and stream miles; 73% of assessed
               lake, reservoir, and pond acres; and 49% of assessed estuary square miles have water quality supporting designated beneficial
               uses for aquatic life support. Likewise 69% of assessed river and stream miles, 63% of assessed lake, reservoir and pond acres,
               and 53% of assessesd estuary square miles have water quality supporting their designated use for fish consumption. 86% of
               assesssed river and stream miles and  83% of lake, reservoir and pond acres support their designated use for drinking water
               supply.

Watershed Protection

In 2003        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.

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.

In 2001        Water quality improved on a watershed basis such that 510 of the Nation's 2,262 watersheds  will have greater than 80 percent of
               assessed waters meeting all water quality standards, up from 500 watersheds in 1998.
Performance Measures:

Watersheds that have greater than 80% of assessed waters
meeting all water quality standards.
  FY2001
   Actual
           510
FY 2002
Enacted
  600 (FY 03)
FY 2003
Request
         600       8-digit HUCs
Baseline:       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.

State/Tribal Water Quality Standards

In 2003        36 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 2003        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.
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In 2002        30 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        21 States and 19 Tribes have effective, up-to-date water quality standards programs adopted in accordance with the Water
               Quality Standards regulation and the Water Quality Standards program priorities.

In 2001        22% of Tribes have water quality monitoring and assessment programs appropriate for their circumstances and will be entering
               water quality data into EPA's national data systems

Performance Measures:                                          FY2001             FY2002             FY2003
                                                                Actual              Enacted             Request
Tribes with monitoring and assessment programs.                             22                  30                  36      % Tribes
(cumulative)

Pilot STORETOOS(b) reporting projects with Tribes.                           2                                              Pilot projects

States with new or revised water quality standards that EPA                    21                  20                  20      States
has reviewed and approved or disapproved and promulgated
federal'replacement standards.

States and tribes with approved E. coli or enterococci criteria.                                      40                  55      States

Tribes with water  quality standards adopted and approved                     19                  27                  30      Tribes
(cumulative).



Baseline:       In 1999, less than 5% of tribes had water quality monitoring and assessment programs appropriate for their circumstances and
               were 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. As of this May EPA was overdue in approving or
               disapproving 38 new or revised standards from 21 states and tribes.    ,

Protecting and Enhancing Estuaries

In 2003        Restore and protect estuaries through the implementation of Comprehensive Conservation and Management Plans (CCMPs).

In 2002        Restore and protect estuaries through the implementation of Comprehensive Conservation and Management Plans (CCMPs).

In 2001        Restored and protected 70,000 acres of estuaries through the implementation of Comprehensive Conservation and Management
               Plans (CCMPs).

Performance Measures:                                          FY2001             FY2002             FY2003
                                                                Actual             Enacted             Request
Priority actions or commitments initiated nationwide as part            '       '83                                              Actions
of the National Estuary Program since approval of the first
CCMP in  1991. (cumulative)

Acres of habitat restored and protected  nationwide as part of       "        70,000              50,000               25,000      Acres
the National Estuary Program, (annual)



Baseline:       As of January 2000, it is estimated that 65% of priority actions initiated and 400,000 habitat acres preserved, restored, and/or
               created.

Gulf of Mexico

In 2003        Assist the Gulf States in implementing watershed restoration actions in 14 priority impaired coastal river and estuary segments.

In 2003        Support projects with the goal of creating, restoring, or protecting 2400 acres of important coastal and marine habitats per year
               (incremental).

In 2002        Assist the Gulf States in implementing watershed restoration action strategies (WRAS) or their equivalent in 37 priority coastal
               river and estuary segments.


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In 2002        Support projects with the goal of creating, restoring, or protecting over 2,400 acres of important coastal and marine habitats per
               year.

In 2001        Assisted the Oulf States in- implementing watershed restoration action strategies (WRAS) or their equivalent in 37 priority
               coastal river and estuary segments.
Performance Measures:

Impaired Gulf coastal river and estuary segments
implementing watershed restoration actions (incremental).

TMDLs (1) scheduled to be completed; (2) submitted by Gulf
States for segments in the coastal watershed; and (3)
established by EPA and; (4) 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.

Increase acreage and restore or protect coastal and marine
habitats by 2009 (incremental).
FY2001
 Actual
          37
 79/851 /32
FY 2002
Enacted
          37
FY 2003
Request
                           2,400
                                                  14
                           2,400
                   Segments
                                       TMDLs
                                                           Miles, etc.
                   Acres
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.

Wetland and River Corridor Projects

In 2003        Support wetlands and stream corridor restoration and management and assessment/monitoring of overall wetland health.

In 2002        Support wetlands and stream corridor restoration and management and assessment/monitoring of overall wetland health.

In 2001        Supported 108 wetlands and stream corridor restoration and management projects arid continued our efforts
               assessment/monitoring of overall wetland health.
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)

States/tribes developing formal programs and wetlands
assessment capacities, aimed toward measuring wetland gain,
loss and/or deterioration.

Watershed-based wetlands restoration projects to which EPA
has provided financial assistance (including 5-Star projects)
and/or has contributed significant technical assistance.
(cumulative)
FY2001
 Actual
FY 2002
Enacted
         108
FY 2003
Request
                                                 550
                                       Projects
                                                           States/Tribes
                                       Projects
Baseline:       Going into FY99, 11 states/tribes had met the criteria for establishing formal assessment/monitoring programs.

Chesapeake Bay Habitat

In 2003        Improve habitat in the Chesapeake Bay.

In 2002        Improve habitat in the Chesapeake Bay.

In 2001        Improved habitat in the Chesapeake Bay by reducing 48.1 million pounds of nitrogen, 6.84 million pounds of phospherous and
               restored over 69,000 acres of submerged aquatic vegetation.
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Performance Measures:                                         FY200I             FY2002            FY 2003
                                                               Actual              Enacted            Request
Pounds reduction, from 1985 levels, of nitrogen and                48.1/6.84 M        77/8.4 million                          Pounds
phosphorus loads entering Chesapeake Bay. (cumulative)

Miles of streambank and shoreline restored with riparian                     711                                    896       Miles
forest buffers, (cumulative)

Wastewater flow to the Chesapeake Bay treated by biological                  47                  53                 58       %WWflow
nutrient removal, (cumulative)

Percent shallow waters that meet water clarity requirements                                                           15       % waters
for submerged aquatic vegetation.

Acres of submerged aquatic vegetation (SAV) present in the               69,126             78,000             80,000       Acres
Chesapeake Bay. (cumulative)

Stream miles of migratory fish habitat reopened through                     816               1,243               1,243       Miles,
provision offish passages, (cumulative)



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

In 2003         70 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 2002        60 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         47% of Tribes 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:                                         FY2001             FY2002            FY2003
                                                               Actual              Enacted            Request
Tribes with a water program presence, (cumulative)                          47                  60                 70       % Tribes



Baseline:       Asof 1999, approximately 20% of Tribes have a "water program environmental presence."


Research

Scientific Rationale for Surface Water Criteria

In 2003        Provide the science and data management scheme for the 303(d) listing process to include classification systems for surface
               waters, watersheds, and regions so that states will have an improved and reliable means of identifying impaired water bodies.

In 2003        Provide updated models for stormwater management, and for allocating suspended  solids and sediment loads, and related
               uncertainties for mixed land use watersheds so that state and local resource managers can make improved scientifically-based
               decisions that protect aquatic resources and human health

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        Developed (and published jointly as part of Office of Water guidance) the framework for diagnosing adverse chemical pollutants
               in  surface waters.

Performance Measures:                                         FY200I             FY2002            FY2003
                                                               Actual              Enacted             Request
Complete Clinch and Powell Watershed Risk Assessment,                       0                        '                      assessment

Complete and publish a compendium of case studies                           I                        -                      compendium
illustrating the application of the Stressor Identification
Guidelines.

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Performance Measures:

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.

Classification frameworks for geographic regions and at the
watershed, water body, and habitat scale.

Prepare a document for use by states to assist in modeling
risk management options and restoration measures in
waterbodies impaired due to  suspended solids and sediment.

Complete report on selected methods for integrating
ecological risk assessment and economics to support
watershed decision-marking.
FY2001
 Actual
 30-Sep-2001
FY 2002
Enacted
FY 2003
Request
                                                report

                                                report



                                          1     report


                                          1     document



                                          1     report
Baseline:     The State and EPA implementation of processes to identify impaired waters and restore them via a wide array of programs,
            including the TMDL process, requires assessment of waters and listing them as impaired. Recent Congressionally directed
            National Academy of Sciences studies note that the Agency's approach to listing impaired waters (the 3030(d) process) is not
            complete (i.e., a substantial quantity of the Nation's waters remain un-assessed) and is not scientifically robust (it appears that
            some listed waters may be inappropriately identified or mis-characterized). Accordingly, ORD has embarked on a focused
            research program to develop the monitoring, diagnostic, and classification schemes to .improve the Agency and State approaches
            to this listing process. While this is a national requirement, regional and watershed, as well as biological, differences must be
            factored into the process.

            The States and other reporting and assessment entities have listed sediments as a major cause of water body and watershed
            impairment. Urban storm water has also been identified as a major source of impairment. In addition the National Academy of
            Science report on TMDLs has called for the increasing characterization and use of uncertainty in modeling for TMDLs. In the
            case of storm water management, TMDL  guidance may require permits for storm water and hence the urgent need to both
            improve the science of modeling such systems and the additional need to include uncertainty analysis techniques as part of the
            modeling process. Accordingly, ORD's research has been directed to provide updates in the modeling capability for this
            important national problem and to increase the capability of modelers andTMDL analysts to provide more robust and cost-
            effective outcomes for water bodies impaired by sediments.

Verification and Validation of Performance Measures
Performance Measure:  Acres of habitat restored and protected nationwide since 1987 as part
of the National Estuary Program (NEP).

Performance Database: A simple database/tracking system is being developed to document the
number of acres of habitat restored and protected.  Key fields will include the type of action (e.g.
protection or restoration) and habitat type (e.g. estuarine, riparian).

Data Source: NEP Program documents such as annual work plans (which contain achievements
made in the previous year) and annual progress reports are used along with other implementation
tracking materials to document  the number of acres of habitat restored and protected.  EPA then
aggregates the data provided by each NEP to arrive at a national total for the entire Program.

QA/QC Procedures:  Primary  data  is  prepared  by the staff of the NEP based  on  their own
reports and  from data  supplied by other partnering agencies/organizations (that  are responsible
for implementing the action resulting in  habitat protection and restoration).   Aggregate data is
compiled through a contractor review of the NEP documentation.  The NEP staff are requested to
follow  guidance provided  by  EPA to  prepare their reports,  and  to verify the numbers they

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provided.   EPA and a contractor then confirm that the national total accurately reflects the
information submitted by each program.

Data Quality Review: This is a new Annual Performance Measure which is still being refined.
No audits or quality reviews conducted yet.

Data Limitations: It is still early to determine the full extent of data limitations. Current data
limitations  include:   information  that  may  be  reported inconsistently (based on different
interpretations of the protection and restoration definitions), acreage that may be miscalculated
or misreported, and acreage that may be double counted (same parcel may also be counted by
partnering/implementing agency or need to be replanted multiple years). In addition, measuring
the number of acres of habitat may  not directly correlate to improvements in the health of the
habitat reported, but is rather a measure of on-the-ground progress made by the NEPs.

New/Improved  Data  or  Systems: The Office  of  Wetlands Oceans and Watersheds  has
developed a standardized format for data reporting and compilation. In addition to providing the
reporting matrix, habitat protection and restoration activities were defined, and habitat categories
specified to assist in providing consistency of reporting. We have also designed a web page that
highlights habitat loss/alteration in an educational fashion  with graphics and images which
reflect specific NEP reports (does not illustrate aggregate data at the national level).  This  will
enable EPA to  provide a visual  means of communicating NEP performance and  habitat
protection and restoration progress to a wide range of stakeholders and decision-makers. In the
future, we will examine the possibility of geo-referencing the data in a geographic information
system (GIS).

Performance Measure:  Watersheds that have greater than 80% of assessed waters meeting all
water quality standards,

Performance Database:  The Watershed Assessment Tracking Environmental Results  System
(WATERS) is used to summarize water quality information at the watershed level. For purposes
of this national summary, "watersheds" are equivalent to 8-digit hydrologic unit codes (HUCs),
of which there are 2,262 nationwide. State CWA 305(b) data is submitted every two years and
many states provide annual updates.  Data to be  used for the  FY  2003 Annual Performance
Report will include state submissions expected in the spring of 2002.

Data Source: State CWA  305(b) reporting.  The data used by the states to assess water quality
and  prepare its 305(b) report include ambient monitoring results  from multiple sources (state,
USGS, volunteer, academic) as well as predictive tools like water quality models. Because states
compile diverse data to support water quality assessments, EPA uses this data to present a snap-
shot of water quality as reported by the states, but does not use it to report trends in water
quality.  EPA's Office of  Water and Office  of Research and Development has established a
monitoring and design team that is working with states on a 3 to 5-year project to recommend a
design for  a national probability-based monitoring network that could be used to provide both
status and trends in water quality at a state and national level.
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QA/QC Procedures: QA/QC of data provided by states pursuant to individual state assessments
(under 305(b)) is dependent on individual state procedures. Numerous system level checks are
built into WATERS based upon the  business rules associated with assessment information.
States  are then given the opportunity to review the information  in WATERS to ensure  it
accurately reflects the data that they submitted. Detailed data exchange guidance and training
are also provided to the states. Sufficiency threshold for inclusion in this measure requires that
20% of stream miles in an 8-digit HUC be assessed.

Data Quality Review: Numerous independent reports have cited that weaknesses in monitoring
programs and the reporting of monitoring data undermine EPA's ability to depict the condition
of the  nation's waters and to support scientifically-sound water program decisions.  The most
recent reports include the 1998 Report of the Federal Advisory Committee on the Total Maximum
Daily Load (TMDL) Program,  the March 15, 2000 General Accounting Office  report Water
Quality:  Key Decisions Limited by Inconsistent and Incomplete Data, and the 2001 National
Academy of Sciences Report Assessing the TMDL Approach to Water Quality Management.

In response to these evaluations, EPA has been working with states and other stakeholders to
improve  1) data coverage, so that state reports reflect the condition of all waters of the state; 2)
data consistency to facilitate comparison and aggregation of state data to the national level; and
3) documentation so that data limitations and discrepancies are fully understood by data users.
First, EPA  enhanced two existing data management tools (STORET and the  Assessment
Database) that include documentation of data quality information.  Second, EPA has developed a
GIS  tool called WATERS that integrates many databases including STORET, the Assessment
database, and a  new  water quality  standards  database.   These integrated databases facilitate
comparison and understanding of differences among state standards, monitoring activities, and
assessment results.  Third, EPA  and states have developed a guidance document Consolidated
Assessment and Listing Methodology - a Compendium of Best Practices intended to facilitate
increased consistency in monitoring program design and the  data and decision criteria used to
•support water quality assessments.

Data Limitations:  Data are not representative of comprehensive national assessments since
states do not yet employ a monitoring design that characterizes all waters in each reporting cycle.
States  do not use a consistent suite of water quality indicators  to assess attainment with  water
quality standards.  For example, indicators  of aquatic life use support range from  biological
community assessments to levels of dissolved oxygen to concentrations of toxic pollutants. State
assessments of water quality may include uncertainties associated with derived or modeled data.
Differences in monitoring designs among and within states prevent the agency from aggregating
water quality assessments at the national level with known statistical confidence.

New/Improved Data or Systems: The Office of Water is currently working with states, Tribes
and  other Federal agencies to improve the database that supports this management measure by
addressing the underlying methods of monitoring water quality and assessing the data. Also, the
Office of Water  is  working  with partners  to  enhance  monitoring networks to  achieve
comprehensive coverage  of all waters, use a consistent suite of core water  quality indicators
(supplemented with additional indicators for specific water quality questions), and document key

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data  elements  and  decision  criteria  through  electronic  data  systems and assessment
methodologies.  The Office of Water is using a variety of mechanisms  to implement these
improvements including data management systems, guidance, stakeholder meetings, training and
technical assistance, program reviews and negotiations.

Performance Measure:  States with new or revised water quality standards that EPA has
reviewed and approved  or disapproved, and promulgated Federal replacement standards.

Performance Database:  No formal database exists to track EPA approval/disapproval actions
on new and revised state water quality standards, although such a database is currently being
designed-

There is, however, an Assessment Database which tracks the water quality standard attainment
status of the nation's surface waters. The new WATERS database is a GIS tool which maps this
information. Please see  discussion under "Watersheds that have greater than 80% of assessed
waters meeting all water quality standards" for discussion of the WQS information mapped in
WATERS.

Data Source: Regional reporting

QA/QC Procedures: Headquarters is responsible for 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 WQS data
submitted by states.

Data Limitations:  N/A

New/Improved Data or  Systems:  N/A

Performance Measure:  Cumulative number of 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 compiling the data, and querying Regions
as needed.  Regions are responsible for collecting the data from their client Tribes and reporting
the data to HQ once yearly.

Data Quality Review:  EPA Headquarters and Regions annually review the data submitted by
Tribes.
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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 the multitude of
programs necessary to address water quality on a watershed basis.  Federal agency involvement
will  include  USDA  (Natural  Resources Conservation Service,  Forest Service,  Agriculture
Research Service), Department of the Interior (Bureau of Land Management, Office of Surface
Mining, United States Geological Survey (USGS), Fish and Wildlife, and the Bureau of Indian
Affairs), National Oceanographic and Atmospheric Administration  (NOAA),  Department of
Transportation,  and  the 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.

       Effectively implementing successful comprehensive  management plans for the estuaries
in the NEP depends on the cooperation, involvement, and commitment of Federal and state
agency partners that have some role in  protecting and/or managing those estuaries.  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.

Research

       EPA has developed joint research initiatives with  the National Oceanic Atmospheric
Administration  (NOAA) and  the  United  States Geological Survey  (USGS)  for linking
monitoring data and field studies information with available toxicity data and assessment models
for developing sediment criteria.

       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  being reviewed.  As part of
implementation, EPA is coordinating its research  with the Biological Research Division of the
USGS.

       The issue of eutrophication, hypoxia, and harmful algal blooms (HABs) is a priority with
the Committee on Environment and Natural Resources (CENR).   An interagency research
strategy for pfiesteria and  other harmful algal species was developed in  1998,  and EPA  is
continuing to implement that strategy.  EPA is working closely with NOAA on  the  issue of

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nutrients and risks posed by HABs.  This CENR sub-committee is also coordinating the research
efforts among Federal agencies to assess the impacts of nutrients and hypoxia in the  Gulf of
Mexico.

      Finally, EPA is initiating collaboration with the  USDA, CDC and other Agencies to
develop a better understanding of the sources of pathogenic stressors and potential strategies for
their control.

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
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)
Estuaries and Clean Waters Act of 2000

Research

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
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)
Endangered Species Act

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                Clean and Safe Water

Objective: 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)

Reduce Loadings and Air Deposition
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$2,007,520.1
$143,264.6
$10,719.4
$1,853,536,1
833.2
FY 2002
Enacted
$2,008,432,1
$152,956,6
$7,585,8
$1,847,889.7
869.5
FY2003
Request
$1,630,434.4
$134,461.0
$5,496.6
$1,490,476.8
866.6
FY 2003 Req.
v. FY 2002 Ena.
($377,997.7)
($18,495.6)
($2,089.2)
($357,412.9)
-2.9
                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Congressionally Mandated Projects
Disadvantaged Communities
EMPACT
Effluent Guidelines
Facilities Infrastructure and Operations
Homeland Security
Lake Champlain
Legal Services
Management Services and Stewardship
NPDES Program
National Nonpoint Source Program
Implementation
Recreational Water and Wet Weather Flows
Research
Regional Management
State Nonpoint Source Grants
Wastewater Management/Tech Innovations •
FY 2001
Enacted
$1.509.8
$256,867.2
$4,309,6
$100.1
$23.354.1
$11,354.5
$0.0
$0.0
$2,714.3
$3,654.4
$40,961.5
$16,644.6
$5,926.4
$402.7
$237,476.8
$9,055.0
FY 2002
Enacted
$0.0
$241,582.9
$4,350.8
$0.0
$22,773.4
$11,335.7
$1,500.0
$1,545.2
$2,923.1
$5,710.6
$40,991.0
$16,488.6
$5.635.8
$494.2
$237,476.8
$8,840.1
FY 2003
Request
$0.0
$0.0
$4,481.3
$0.0
$23,010.3
$1 1,869.4
$0.0
$0.0
$3,170.7
$6.192.8
$41,720.8
$16,908.6
$5,496.6
$490.7
$238,476.8
$9.073.7
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($241,582.9)
$130.5
$0.0
$236.9
$533.7
($1.500.0)
($1,545.2)
$247.6
$482.2
$729.8
$420.0
($139.2)
($3.5)
$1,000.0
$233.6
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Water Infrastructure: Alaska Native Villages
Water Infrastructure:Bristol County
Water lnfrastructure:Clean Water State
Revolving Fund (CW-SRF)
Water Quality Infrastructure Protection
FY 2001
Enacted
$34,923.0
$1,935..7
$1,347,030.0
$16,704.3
FY 2002
Enacted
$40,000.0
$0.0
$1,350,000.0
$16,783.7
FY 2003
Request
$40,000.0
$0.0
$1,212,000.0
$17,239.3
FY 2003 Req.
V. FY 2002 Ena.
$0.0
$0.0
($138,000.0)
$455.6
FY 2003 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 covering municipal and industrial discharges, urban wet weather, large animal feeding
operations, mining,  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),
which require achievable pollutant reductions generally, and water quality based requirements,
which require greater controls in locations where water quality standards would not otherwise be
met, are achieved •.  The point source reductions required by the TMDLs must be implemented
through issuance of NPDES permits containing appropriate limits.  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:  Protect
Watersheds and Aquatic Communities.   EPA also provides  financial  assistance through the
Clean Water State Revolving  Fund  (CWSRF) program  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 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.

       Safeguarding our nation's 20,000 wastewater collection  and treatment systems  from
terrorist acts is the combined responsibility of private, local, state, and federal entities.  Threats
from terrorists could include contamination with chemical or  biological agents, destruction of
physical infrastructure and disruption of electrical and computer systems. Few utilities around
the nation have undertaken  comprehensive vulnerability  assessments or emergency planning
specifically for  counter terrorism purposes. In response to these  threats, EPA is focusing its
efforts on development and testing of counter terrorism tools, supporting training and the
development of vulnerability assessments and enhancing emergency operations plans by utilities,
providing needed  technical  assistance, conducting research on redesign and detection for the
collection and treatment systems, and testing and implementation of this research.
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       FY 2003 resources under objective 1 will support the efforts of EPA and its partners to
provide tools and training necessary to assess vulnerabilities of critical wastewater  treatment
infrastructure, take appropriate preventive actions, and enhance emergency operation plans.  In
addition  we intend  to  support  on-going vulnerability prevention through on-site  technical
assistance.

       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 through
reductions in pollutant loadings.  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 take final action  on effluent limitations guidelines  for two major
industrial  sectors: metal products and machinery and concentrated animal feeding operations
(CAFOs). These guidelines will then be incorporated into NPDES permits as they are issued or
reissued by the  NPDES permitting authority. EPA will continue to develop the chemical criteria
protective of aquatic life and human health which complement the effluent guidelines used in the
NPDES program.

       EPA is developing regulations under section 316(b) of the Clean Water Act to ensure that
the location, design,  construction and capacity of cooling water intake structures reflect the best
technology available for minimizing adverse environmental impact. These regulations are unique
in that they apply to the intake of water and not the discharge. A major goal of this program is to
minimize  the impingement and  entrainment of  fish and other  aquatic organisms .as they are
drawn into a facility's cooling water intake.  Impingement occurs when fish and other aquatic life
are trapped against cooling water intake screens,  Entrainment occurs  when aquatic organisms,
eggs and larvae are drawn into a. cooling system, through the heat exchanger, and then pumped
back  out.  In  FY  2003, EPA  will take important regulatory steps to provide this  aquatic
protection. First, EPA will take  final action to regulate cooling water intakes at existing power
plants - both utilities and non-utility power producers - that use large volumes of cooling water
(often referred  to as Phase 2 regulations).  Second, EPA will propose regulations  for a larger
group of facilities that employ a cooling water intake structure with intake flow  levels less than
those covered  by Phase 2, but where flow levels remain a concern for aquatic organisms
(referred to  as  Phase 3 regulations).   In addition to electricity generating facilities, Phase 3
regulations could control chemical manufacturing facilities, pulp and paper manufacturing
facilities, and petroleum product manufacturing facilities.

       During  2003, the Agency will 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

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policy as required by the Consolidated  Appropriations Act of 2000; and to clarity 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 animal feeding operations (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.

       The Office of Inspector General has identified the NPDES permit backlog as a material
weakness under  Federal Manager's Financial Integrity Act (FMFIA).  The backlog in EPA-
issued permits had tripled over the past 10 years; and the backlog in state-issued permits 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, developing innovative
approaches,  and  providing technical support and training to Regions and states. In 2003,  EPA
will maintain a target for the backlog of current permits for major point sources at 10 percent,
compared to a 28% backlog 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 2003, the Agency is requesting $1.212  billion 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 is critical to the success of the national SRF programs.

       The  CWSRF  investment will continue 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 $19 billion has already been provided to
capitalize the CWSRF, over twice the original Clean Water Act authorized level of $8.4  billion.
Total CWSRF funding available  for loans  since 1987, reflecting loan repayments,  state match
dollars, and other funding sources, is approximately $37.7 billion,  of which more  than  $34
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billion has been provided to communities as financial assistance. As of My 2001, $3.4 billion is
being readied for loans.

       The Agency is requesting a one year extension 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 by the Congress, the transfer  provision expires September 30,
2002.

       The CWSRF  and  the DWSRF  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  straining financial resources.  In a June 2000 study, EPA estimated  that without
improved waste water 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  on 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.

       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  Rural  Community Assistance Program  and the  National Small  Flows
Clearinghouse.   The water efficiency program provides information on the beneficial  impacts of
municipal water efficiency,  and  helps  communities and our  partners (including  the lodging
industry, office building managers,  and educational institutions) become aware of, and reduce,
their rates of water use, thereby saving water, conserving energy, and reducing chemical usage.

       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.  To improve public health and water quality in Indian Country, the Agency
proposes to continue the 1 1A percent set-aside of the CWSRF for wastewater grants to Tribes as
provided in the Agency's FY 2002 appropriations bill. The Agency also requests $40 million for
wastewater and water infrastructure projects in Alaska Native Villages.
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       The Agency continues to manage the construction grants close-out process and expects
by the end of 2002 to have substantially achieved success in closing out pre-1992 projects; we
expect that we will still have several pending appeals in a few states. The Agency also provides
grant assistance for environmental protection for Alaska Rural and Native Villages and Indian
Tribes,  and manages  grant  assistance  for 739 water and  wastewater projects with  total
appropriations of over $3.5 billion through F Y 2001.

       EPA does not regulate septic, or "on-site decentralized wastewater," systems. However,
poorly-sited and maintained systems pose a risk to drinking water wells and surface water,
drinking water supplies, home basements, yards, shellfish beds, aquatic life and the supporting
ecosystem.  Properly managed septic 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 60 percent of the
river miles surveyed.  In order  to meet this objective and restore and maintain water quality,
significant loading reductions from nonpoint sources (NFS) must be achieved. Because EPA
does not have  direct authority to regulate NPS under the Clean Water Act, effective 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 to encourage states to provide CWSRF
funding for high priority projects that address nonpoint source and estuary issues.

       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 their management programs and are in the process of implementing these programs.
To facilitate this effort, EPA and the Association of state and Interstate Water Pollution Control
Agencies (ASIWPCA) will continue the state/EPA nonpoint source  management partnership to
help states identify and meet their technical and programmatic needs. In particular, EPA and the
states will work together to better use the CWA Section 319 framework and funds to develop and
implement NPS TMDLs.

       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 date eight 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 NPS  runoff with a mix of voluntary and state regulatory

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approaches. These state programs  are the primary means for achieving nonpoint source load
reductions called for in 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.   In  2003 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 seventy in 2001.  This number is expected  to  increase  annually as more federally
recognized Tribes with significant NPS pollution problems become  eligible to participate in the
319(h) program. EPA conducts several tribal workshops every year with the primary objectives
of  improving  Tribes'  knowledge of NPS  pollution,  assessment  techniques,  program
development, and implementation.  Due to increasing demand for limited tribal grant funds, EPA
is proposing a one year elimination 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.

       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

       Effective watershed management strategies and guidance for wet weather flow (WWF)
discharges  and improved recreational  water quality  and  risk  communication  programs are
necessary to ensure clean and safe  water for drinking, recreation, and wildlife habitat. Pollution
from urban 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.  In  addition,  thousands of beach advisories  and closings  are issued at
recreational rivers, lakes, and oceans every year throughout the United  States. According to the
Natural Resources Defense Council's  eleventh  annual  beach report,  11,270  closings and
advisories  were issued in  2000.  As monitoring improves and expands,  as  required by the
Beaches Environmental Assessment and Coastal Health Act of 2000 (the Beaches Act), the
numbers are likely to  rise still higher.  Under this research objective, EPA will  continue to

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develop and validate effective strategies for controlling WWFs, especially when they are toxic.
EPA will also develop and provide effective evaluation tools necessary to make timely and
informed decisions on beach advisories and closures and strengthen beach programs and water
quality criteria for recreational water use.

       Research on WWFs will focus on the development of decision support tools to  evaluate
and verify improved watershed management strategies. A truly holistic watershed management
approach will include practical interaction with flood and erosion control, reuse and reclamation
techniques, and infrastructure demands—while protecting the watershed environment, including
source waters. A major public health emphasis will be placed on WWF management needs.  To
minimize the public health risks from swimming and other recreational water activities,  research
will specifically focus on both developing techniques to reduce WWF impacts as well as provide
data to support the development of scientifically sound beach closure criteria. This program is
designed to promote "community-based" decisions by developing decision support tools and
alternative WWF control technologies and strategies for use by local decision makers involved in
community-based watershed management and pollution control.  In FY 2003, EPA  plans  to
update its WWF Research  Plan to address  specific issues associated with aquatic stressors,
including nutrients, suspended solids and sediments, pathogens, toxics, and flow.

       Beaches research in FY 2003 will focus on better understanding the effects of microbial
pathogens on human health. These pathogens present growing human health and environmental
concerns.  Significant uncertainty exists in determining the level of illness corresponding to the
actual exposure (ingestion, inhalation, and skin contact) to contaminated recreational waters.  A
scientifically-based investigative process to determine potential health risks and eliminate their
sources in recreational waters is sorely needed to provide decision makers with the necessary
tools to make defensible science-based  decisions  to ensure  public health safety.  This  will
include identifying appropriate indicators of fecal contamination and determining relationships
between indicators and risk levels for disease. As part of this effort, EPA is performing a suite of
epidemiological studies  needed to establish a stronger, more defensible link between water
quality indicators and disease.  These epidemiological studies will provide reliable information
about  the relationship  between  recreational  water  quality  and  swimming-associated  health
effects. This will enable EPA to provide states with consistent monitoring methods, standardized
indicators of contamination, and standardized definitions of what constitutes a risk to  public
health.  This information will  be used to develop improved water quality criteria.  Local  public
health  officials can  use the results of this research to provide  the public  with "real-time"
information on potential exposure  to pathogenic microbes and make more timely beach closure
decisions.

       Other  research  will  focus  on  continued  development  of  monitoring  and  risk
communication alternatives, development and evaluation of faster and unproved methods for
measuring  fecal  indicators, and  characterization  of typical  water ingestion  exposures  for
swimmers.  Improved indicators and exposure pattern data are needed to conduct well-designed
epidemiological studies.
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FY 2003 Change from FY 2002

EPM .

•      (-$1,000,000)  This  decrease  reflects  having  successes  in  developing  tools  for
       vulnerability assessments to ensure security for wastewater.

«      (-$500,000)  This reduction reflects  progress  made  in  providing  information  to  the
       wastewater treatment industry  as well as  facilitating communication and coordination
       between the wastewater treatment industry and relevant governmental agencies through a
       grant with the Association of Metropolitan Sewerage Agencies.

       (-$20,765,200) The FY 2003 Request is below the FY 2002 Enacted budget level due to
       Congressional earmarks received during the FY 2002 appropriations process which are
       not included in the FY 2003 President's Request.

•      (+$876,900) Resources, dollars and FTE, associated with rent are allocated in proportion
       to Agency-wide FTE located in each goal, objective.    Resources, dollars and FTE,
       associated with utilities,  security  and  human resource operations are allocated  in
       proportion to Headquarters FTE located in each goal, objective.  Changes reflect shifts in
       FTE between goals  and  objectives.   Resources,  dollars  and FTE, associated with
       contracts and grants are allocated in proportion to Headquarters'  contracts and grants
       resources  located in each goal, objective.  Changes in these activities reflect shifts in
       resources  between goals and objectives.  (Total changes - rent:  -$3,569,400, utilities:
       +$3,468,000, Security:  -$9,103,900.  Nominal increases/decreases occurred in  human
       resource operations, grants and contracts related activities.)
STAG
       (+$1,000,000) This increase in Section 319 Non-point source funding will support states'
       programs to address polluted runoff,  including through implementation of watershed-
       based plans for NFS TMDLs.

       (-$138,000,000) The FY 2003 request ($1,212,000,000  for the CWSRF) is consistent
       with the longstanding goal for the CWSRF to revolve at an average of $2 billion per year.
       This reduction also helps fund high  priority Homeland Security activities across the
       Federal government.

       (-$220,412,900) The FY 2003 Request is below the FY 2002 Enacted budget level due to
       Congressional earmarks received during the FY 2002 appropriations process which are
       not included in the FY 2003 President's Request.
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Research
S&T
         (-$1,950,000)  The FY 2003 Request is $1,950,000  below the 2002 Enacted  budget due
         to the  Congressional  earmarks received during the appropriations process which are not
         included in the 2003 President's Request.

         (-$291,800, -3.2  FTE)  This  reduction results from the  completion of research on the
         development of rapid indicators of fecal  contamination.  Resources are being shifted to
         address drinking water pathogen issues in Goal 2, Objective 1.
Annual Performance Goals and Measures


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       Millions of pounds of industrial discharges of pollutants to the nation's waters were significantly eliminated through
             implementation of effluent guidelines.

Performance Measures:                                     FY200I           FY 2002           FY2003
                                                        Actual            Enacted           Request
Reduction in loadings for toxic pollutants for facilities                     10.3         10.5 million                       Pounds
subject to effluent guidelines promulgated between 1992 &
2000, as compared to 1992 levels as predicted by model
projections, (cumulative)

Reduction in loadings for conventional pollutants for                    557.0         572 million                       Pounds
facilities subject to effluent guidelines promulgated between
1992 & 2000, as compared to 1992 levels as predicted by
model projections, (cum)

Reduction in loadings for non-conventional pollutants for                 922.0        1,007 million                       Pounds
facilities subject to effluent guidelines promulgated between
1992 & 2000, as compared to 1992 levels as predicted by
model projections, (cum)



Baseline:      Loading reduction estimates are based on model projections from effluent guidelines promulgated between 1992 and 1999, with
             both the numbers of affected facilities and permits estimated. Flow data is not available for some point sources in PCS.

NPDES Permit Requirements

In 2003       Current NPDES permits reduce or eliminate loadings into the nation's waters of (1) inadequately treated discharges from
             municipal and industrial facilities (direct and indirect dischargers); and (2) pollutants from urban storm water, CSOs, and
             CAFOs.

In 2002       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.

In 2001       Maintaining current NPDES permits aid in the reduction or eliminatation of discharges into the nation's waters of inadequately
             treated discharges from municipal and industrial facilities; and pollutants from urban storm water, CSOs, and CAFOs,

Performance Measures:                                     FY2001           FY2002           FY2003
                                                        Actual            Enacted           Request
Major point sources are covered by current permits.                        75              90%    -          90%      Point Sources



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Performance Measures:

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.

Permittees (among the approximately 900 CSO communities
nationwide) that are covered by NPDES permits or other
enforceable mechanisms consistent with the 1994 CSO
policy.

States with current general NPDES permits for CAFOs of
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.

States with current storm water permits for all industrial
activities operating in the state.

Loading reductions (pounds per year) of toxic, non-
conventional, and conventional pollutants from NPDES
permitted facilities (POTWs, Industries, SIUs, CAFOs, SW,
CSOs).

Pounds of pollutants prevented from being discharged into
waters due to field technical assistance at 775 municipal
wastewater treatment plants.

Permits on 303(d) listed waterbodies which implement EPA
approved TMDLs.
FY2001
 Actual
FY2002
Enacted
          91
          59
          87
FY2003
Request
          75

          92
                                      % States


                                      % States




                                      % permittees




         100                          % States


           1                          Methodology
        73%                84%      Point Sources

                                      % States


                      500 million      pounds
                                              12,000       pounds



                                                 90       % permits
Baseline:       As of May 1999, 72% of major point sources and 54% of minor point sources were coA'ered 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 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 2003        Reduce point source loadings by closing out within 7 years projects funded under Clean Water Act Title II (construction grants)
               awarded after FY 91 and Special Project Stag Grants.

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        Reduced point source loadings by expediting completion of 37 projects funded under Clean Water Act Title II (construction
               grants) and special project STAG grants.

Performance Measures:

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.

Percentage of Construction Grants and Special Project Grants
closed out within 7 years of award.
FY2001
Actual
79
138

FY2002 FY2003
Enacted Request
90 % grants
13 Projects
90 % grants
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 Performance Measures:                                          FY2001             FY2002             FY2003
                                                                 Actual              Enacted             Request
 Special project STAG grants closed out within 7 years of                      78                  90                          % Grants
 grant award.



 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

 In 2003        Develop effluent guidelines that when implemented are expected to reduce pollutant loadings into surface waters.

 In 2003        Develop regulations for cooling water intakes that when implemented are expected to reduce harm to aquatic life.

. 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 2002        Take final action on 2 and propose 3 effluent guidelines limitations for industrial categories that contribute significantly to
                pollution of surface waters.

 In 2001         Took final action on 1 and proposed 4 effluent guidelines limitations for industrial categories that contribute significantly to
                pollution of surface waters.

 Performance Measures:                                          FY2001             FY2002             FY2003
                                                                 Actual              Enacted             Request
 Number of effluent guidelines proposed or promulgated.                     4/1                 3/2                          Rules

 Number of cooling water intake (316(b)) regulations                                             1/1                  I/I      Rules
 proposed or promulgated.

 At least 150 million pounds of pollutants eliminated from                                                             150      million pounds
 waters of the U.S. as a result of two final effluent guidelines.



 Baseline:       Loading reduction estimates are based on model projections from the effluent guidelines, with both the numbers of affected
                facilities and permits estimated.

 Clean Water State Revolving Fund: Annual Assistance

 In 2003        900 projects funded by the Clean Water SRF will initiate operations, including 515 projects providing secondary treatment,
                advanced treatment, CSO correction (treatment), arid/or storm water treatment.  Cumulatively, 8,800 projects will have initiated
                operations since program inception.

 In 2003        Reduce point and nonpoint source loadings by managing the $34 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.

 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 2001        933 projects funded by the Clean Water SRF initiated operations, including 400 projects providing secondary treatment,
                advanced treatment, CSO correction (treatment), and/or storm water treatment.  Cumulatively, 7,452 SRF funded projects will
                have initiated operations since program inception.

 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.

 Performance Measures:                                          FY2001             FY2002             FY 2003
                                                                 Actual              Enacted             Request
 CW SRF projects that have initiated operations, (cumulative)                7,452               7,900               8,800      SRF projects

 States that are using integrated planning and priority systems                   16                   18                  20      States
 to make CW SRF funding decisions, (cumulative)


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Performance Measures:                                         FY2001            FY2002            FY2003
                                                              Actual             Enacted            Request
States that meet or exceed "pace of the program" measures                     24                                             States
for loan issuance and construction (cumulative).

States and Puerto Rico that conduct separate annual audits of                   42                                             States
their CW SRFs

National CWSRF Federal Return on Investment, as measured                                    $1,90                          Ratio
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                                    90%               90%      Ratio
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 the Clean Water                     1                                             Report
State Revolving Fund Program.



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 loan 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.

Improving Wastewater Sanitation in Indian Country

In 2003        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 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        Increased protection of human health in Indian Country by providing adequate wastewater sanitation to over 10,000 homes in
               Indian Country with inadequate wastewater sanitation systems.

Performance Measures:                                 .       FY2001            FY2002            FY 2003
                                                              Actual             Enacted            Request
Percent of homes in Indian Country whose residents are                       14                  19                  26      % Homes
provided with adequate wastewater sanitation systems though
funding from the CW SRF Tribal Set Aside Program.
(cumulative)



Baseline:       Annual reporting established in F Y 1998 by EPA and the Indian Health Service shows 71,028 homes in Indian Country without
               adequate treatment.

Wastewater Treatment Facility Compliance

In 2003        Enhance public health and environmental protection by securing the nation's critical wastewater infrastructure through support
               for homeland security preparedness, including vulnerability assessments, emergency operations planning, and system operator
               training,

In 2002        Protect human health and avoid increased point source loadings  by helping the approxiately 17,000 small U.S. wastewater
               treatment systems to maintain permitted performance levels.

In 2001        Protected human health and avoided increased point source loadings by permitting over 750 wastewater treatment systems to
               maintain permitted performance levels.

Performance Measures:                                         FY2001            FY2002            FY 2003
                                                              Actual             Enacted            Request
Wastewater treatment facilities maintaining permitted                        776                780                          Facilities
performance levels through assistance under Section 104(g)
of the CWA.
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Performance Measures:

Percent of the population served by, and the number of, large
and medium-sized (10,001 and larger) Publicly Owned
Treatment Works (POTWs) that have taken action for
homeland security preparedness.
                                              FY2001
                                               Actual
FY 2002
Enacted
FY 2003
Request
   65%/5000
                                                                                                       %ppp/systems
Baseline:       In 1998, 890 facilities were assisted to improve, maintain, or achieve compliance,

Wastewater Treatment

In 2003        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 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        Reduced 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.
Performance Measures:

States which adopt the Voluntary Management Guidelines
for On-site Wastewater Treatment Systems.
                                              FY2001
                                               Actual
FY 2002
Enacted
FY 2003
Request
                                                                                                       States
Baseline:       The Agency's National Information Management System shows 3,909 SRF projects initiated as of June 1998.

Reducing Nonpoint Source Pollution

In 2003        Reduce nonpoint source sediment and nutrient loads to rivers and streams.

In 2002        Reduce nonpoint source sediment and nutrient loads to rivers and streams.

In 2001        Reduced nonpoint source sediment and nutrient loads to rivers and streams by ensuring that 5% of AFOs have developed
               Comprhensive Nutruient Management Plans (CNMPs).
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 fully 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)
                                              FY2001
                                               Actual
                                                       5%
FY 2002
Enacted
                                                                          10%
                                                                            56
                                                                           200
FY 2003
Request
                                                                                               29
                             200
                                      AFOs
                                                                                                       % CW SRF
                                                                                                       States/Tribes
                                      States/Tribes
                   M Dollars
Baseline:
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

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. This includes fields for permit issuance
and expiration dates for individual permits only. EPA has carried out detailed backlog tracking
with PCS data since November 1998 and has hard copies of historical reports  since the early
1980s.

Data Source: Regions and states enter data into PCS.

QA/QC Procedures:  HQ reviews data submitted by states as part of the QA/QC process.  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 Classification
(SIC) code, latitude/longitude, Hydrologic Unit  Code  (HUC), reach,  flow,  issuance  date,
expiration date* application received  date, effective date, etc.). These reports were distributed in
January 2001 to  state  and  regional PCS, National Pollutant  Discharge  Elimination System
(NPDES), and Geographic Information  Systems (GIS) coordinators to allow states to "see what
EPA sees" when it views PCS data.  Where discrepancies exist between  state and PCS data, OW
is identifying such discrepancies and making 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 hardcopy). EPA plans  to populate fields in
PCS that are currently blank with existing state-level data provided by states.

Data Quality Review:  Office of Inspector General (OIG) audits 8100076 (3/13/98) and 8100089
(3/31/98) discussed the need for current data in PCS. OW is 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 PCS data availability, staff are working
with individual states and regions to tailor approaches to getting key  data into PCS.  OW is
offering  data upload,  data entry, and,  if necessary, data  compilation support to states and
anticipates completion of the project by the end of calendar year 2001.

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 the data quality of PCS.  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 the National Pollution Discharge
Elimination program.
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 Performance Measure (PM):  Loading reductions (pounds per year) of toxic and  non-
 conventional, and conventional pollutants from  NPDES  permitted  facilities (POTWs,
 Industries,  Significant Industrial  Users  (SIUs), Confined  Animal Feeding  Operations
 (CAFOs), Storm Water (SW), Combined Sewer Operations (CSOs)).

 Performance Database: The Permits  Compliance System(PCS) will  be used for available
 information on  permitted facilities,  including SIC  codes,  flow, and  location data.   Other
 databases that may be  used include,  the  Clean Water Needs Survey  for  treatment-level
 information, the storm water Notice  of Intent (NOI)  database to determine  facilities covered
 under  storm water general  permits,  the National Oceanic  and Atmospheric  Administration
 (NOAA) Rainfall  Database  for precipitation information,  and STORET for  water  quality
 information.  The data in these databases will be used to model loadings from NPDES permitted
 facilities.  However, data are not available for all categories of dischargers  or for all dischargers
 in each category. Data are particularly lacking for storm water dischargers.

 Data Sources: Regions and  states enter data into PCS, the Needs Survey, and STORET.  NOI
 data is provided by applicants for coverage  under general permits (both storm water and non-
 storm water) and limited data elements are entered into PCS by some states. Where EPA is the
 permitting authority, EPA contractors enter storm water NOI data in a separate database. EPA
 has collected  effluent guidelines development data for  various industrial  categories.   NOAA
 enters data in the  Rainfall  Database.  EPA  is collecting Best Management Practices (BMP)
 effectiveness data  from various studies.  And EPA is  collecting Combined Sewer Overflow
 (CSO) data from states EPA for required reports to Congress; these data should ultimately reside
 in PCS.

 QA/QC Procedures: EPA reviews critical data  submitted by states.  Some databases, such as
 STORET require documentation of the quality  of the data  along with the data entry.   With
 respect to PCS, EPA has a project underway to work with states to improve the data  in PCS (See
•earlier narrative for "Major/Minor Point Sources Covered by Current Permits.") Load reductions
 are estimated by modeling  the various categories of sources.  Actual data will  be used to
 calibrate and verify the models used.

 Data Quality Reviews:  See earlier  narrative for "Major/Minor Point Sources Covered  by
 Current Permits."

 Data Limitations: There are significant data gaps in PCS, including reliability issues, for minor
 facilities, general permits, and specific categories of discharges, such as  CAFOs. Additionally,
 neither monitoring nor flow data are required for  certain categories of general permits.  The
 Agency, therefore, is not able to provide sufficient information to measure loadings reductions
 for all of the approximately 550,000 facilities that fall under the NPDES program.

 New/Improved  Data or Systems:  EPA Headquarters is providing contractor assistance to
 improve the data quality in PCS. By 2003, PCS is scheduled  to be modernized to make it easier
 to use. As the modernized system is being developed, additional efforts are underway to bolster
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comprehensive data collection to ensure'that the modernized system includes data needed to
manage the National Pollutant Discharge Elimination program.

Performance Measure:  Clean Water State Revolving Fund (CWSRF) projects that have
initiated operations.

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: EPA headquarters is responsible for .compiling the  data and querying
regions as needed. Regions  are responsible for collecting the data from their client states and
reporting the data to headquarters 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 has been operative since 1996.  It is updated on
an annual basis, and database fields are changed or added as needed.

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
(NOAA) on efforts to ensure that NPDES programs support coastal and national estuary efforts;
and with the Department of Interior on mining issues.

Joint StrateRV for Animal Feeding Operations

       The Agency  is working closely  with  the Department of Agriculture  (USDA)  to
implement the Unified National Strategy for Animal Feeding Operations finalized on March 9,

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1999.  The Strategy sets forth a framework of actions that USDA 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. EPA has had regular meetings with USDA on the CAFO
rule  and the Cost  and  Capability study and  has planned coordinated funding for  targeted
watersheds.

Clean Water State Revolving Fund (CWSRF)

       Representatives from EPA's SRF program, Housing and Urban Development's (HUD's)
Community Development Block Grant program, and USDA's Rural Utility Service have signed
a Memorandum of Understanding committing to assisting state or Federal implementers in: (1)
coordination of the  funding cycles of the three Federal agencies; (2) consolidation of plans of
action  (operating plans,  intended use plans, strategic plans,  etc.); and (3) preparation of one
environmental review document, when possible, to satisfy the requirements of all participating
Federal agencies. A coordination group at  the Federal level has been formed to further these
efforts and maintain lines of communication.  In many states, coordination committees have been
established with representatives from the three programs.

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

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implementation  of the  Environmental  Quality  Incentives Program,  Conservation  Reserve
Program, and other conservation programs. USDA also plays a major role in reducing nutrient
discharges through these same programs and through activities related to the AFO Strategy.
EPA  will also  continue  to  work  closely  with  the  Forest  Service  and  Bureau of Land
Management, whose programs can  contribute significantly to reduced pollutant loadings of
sediment, especially on the vast public lands that comprise 29 percent of all land in the United
States. EPA will work with these agencies, USGS, and the states to document improvements in
land management and water quality.  Finally, EPA is teaming with NOAA to track an annual
performance goal regarding approval of states' coastal nonpoint source control programs.

       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 arid other interested stakeholders.

Air Deposition

       EPA is working with NOAA, 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.

Coordination with Other Agencies

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.
Projects under the WWF research  plan are being coordinated with projects under Section
104(b)(3)  of the  Clean Water Act (CWA). This plan is also being used to coordinate relevant
work being conducted by others such as the Water Environment Research Foundation's  Wet
Weather Advisory Panel, the ASCE Urban Water  Resources  Research  Council, the U.S.
Department of Agriculture, the U.S. Centers for Disease Control  and  Prevention (CDC),  the
Army Corps of Engineers (USAGE), the U.S. Geological Survey (USGS), the Sanitary  Sewer
Overflow (SSO) Advisory Committee and Urban WWF Subcommittee, and other national and
international organizations that work to improve coordination and minimize duplication of WWF
research.

       EPA is partnering with numerous other Federal and state agencies  on WWF research
projects.  For example,  the Agency signed a three-year  interagency  agreement (IAG) with

                                         11-80

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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 tools to  predict such
geomorphologic changes. Land use changes alter storm water runoff patterns which upset the
established equilibrium  between  the  flow,  shape,  and  course  of the streambed  (stream
geomorphology). Under  this IAG the USAGE will modify an existing river model to account for
erosion in small streams.

      Also, 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 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
                                         11-81

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Goal 3: Safe Food

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Environmental Protection Agency
2003 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 3: Safe Food	,	IH-1
        Reduce Risks from Pesticide Residues in Food	IJI-11
        Eliminate Use on Food of Pesticides Not Meeting Standards	,	,	111-20

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                           Environmental Protection Agency

           FY 2003 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)

Safe Food
Reduce Risks from Pesticide Residues in
Food
Eliminate Use on Food of Pesticides Not
Meeting Standards
Total Workyears
FY 2001
Actuals
$124,949.3
$44,288.8
$80,660.5 .
817,1
FY 2002
Enacted
$110,537.1
$47,609.6
$62,927.5
780.2
FY 2003
Request
$109,814.6
$45,290.4
$64,524.2
770.1
FY 2003 Req.
v. FY 2002 Ena.
($722.5)
($2,319.2)
$1,596.7
-10.1
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 by
strict standards that protect 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).  Moreover, it submits for review its pesticide regulations and related science issues to
the Science Advisory Panel (SAP), an independent, expert advisory committee whose members are
nominated by the National Institutes of Health and the National Academy of Sciences.  The SAP
plays a critical role in EPA's decision-making process, assuring decisions that impact on health and
the environment rely on sound science.
                                         III-l

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       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
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
and liver, and 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 formulators
       29,000 distributors and other establishments
       40,000 commercial pest control firms
       1.2 million pesticide applicators
       One million farms
       Several million industry and government
       users
       About 100 million households

Source: OPP 's Pesticides Industry Safes and Usage Report
       All  pesticides  are  subject  to  EPA
regulation   including   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. The total U.S. pesticide usage in 1997 was 4.6 billion pounds, according to the
report,    "Pesticide    Industry    Sales    and    Usage:     1996    and    1997"    (
http://www.epa.gov/oppbeadl/pestsales). Agriculture accounts for about 80 percent of all pesticide
applications.  Herbicides are the most widely used pesticides and account for  the greatest
expenditure and volume, approximately $6.6 billion and 568 million pounds in 1997. Biopesticides
and  reduced risk pesticides are assuming an increasingly important role. For example, safer
pesticides, which include biopesticides and reduced risk pesticides, increased in use from 3.6% in
1998  to  7.1%  of  total  pounds  applied  in  2000   (Doane  Marketing  Research,   Inc.:
http://www.doanemr.com).

       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 agency-wide FY 2003 request supporting
FQPA includes $ 142.3 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:
                                           III-2

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•      Providing for a more complete assessment of potential risks, with special protections for
       sensitive groups, such as infants and children;

•      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;

•      Expediting the approval of reduced risk pesticides; and

•      Encouraging farmers' adoption of safer pest management practices.

Means and Strategy

       The Agency's strategy for accomplishing the objectives of Safe Food is based on five pillars,
four of which are in Goal 3 and one in Goal 4. Under Goal 3, the EPA is:

••     Assuring that new chemicals and new uses  are registered in accordance with the FQPA's
       strict standard,  "reasonable certainty of no  harm,"and  that no harm will result to human
       health from all combined sources of exposure to pesticides (aggregate exposures);

••     Assuring that pesticide maximum legally allowable tolerances for foods eaten by children
       are in conformance with FQPA requirements that protect children;

••     Re-evaluating older, potentially higher-risk pesticides using the best current scientific data
       and methods to determine whether additional limits on a pesticide's  use are needed to
       provide reasonable certainty of no harm, especially for children and  other sensitive
       populations; and

* •     Expediting review and registration of alternative pesticides that are less risky than pesticides
       currently in use and may be substituted effectively for higher risk pesticides.

       In 2003, 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 manage systematically the risks of pesticide exposures by
establishing legally permissible food-borne pesticide residue levels, or tolerances. EPA defines 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.
                                           III-3

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                                                          Cotton insecticide use
                                                      label warnings to birds and wildlife
       The 2003 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 standard  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.
                                          1993 ' '  1994
                                                                             1999    2000
       Adoption of biotechnology has great potential to reduce reliance on some older, more risky
chemical pesticides, and to lower worker risks. For example, the use of Bt cotton has affected the
use of other insecticides which present higher risk to wildlife. According to the reported number of
insecticide treatments per planted acre of cotton, use of insecticides labeled either toxic or extremely
toxic to wildlife has undergone significant reduction since 1995, the extremely  toxic pesticides
decreasing from L6 to 0.5 acre treatments, a 68% reduction. (See chart.)

       Outreach activities on the subject of biotechnology such as public meetings and scientific
peer reviews of our policies and assessments are likely to be expanded to keep pace with changing
science and the public's demand for information in this area.  EPA is working closely with other
federal agencies involved in biotechnology and is also actively involved in developing international
standards for the regulation of biotechnology products.  Specific activities in 2003 will include
advancing scientific knowledge of allergenicity (i.e.human allergic reactions to pesticide residues);
continued implementation of 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.  The Task force is involved in developing international standards governing foods
derived from biotechnology.

       Use of biotechnology to modify plants so that they resist harmful insects  or the effects of
herbicides is likely to attract continued public scrutiny, particularly on issues such as allergenicity
and gene transfer. Biotechnology is becoming increasingly more  important in our economy with
bioengineered plants accounting for a larger share of acres planted than ever before in the United
States. For example, in 1996, Herbicide Resistant (HT) Soybeans accounted for only  8% of the total
                                           IH-4

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U.S. acres planted in soybeans. In 2000, HT Soybeans accounted for 53% of the acres planted for
other crops, trends also indicate increases, though not as dramatically as for soy (see chart).

       While certain issues remain to be addressed, among the potential benefits of biotechnology is
a reduction of our reliance on some older, more risky chemical pesticides, thereby reducing worker
exposure to these chemical pesticides. To  ensure the safety of foods derived from biotechnology,
EPA will continue to seek outside expert scientific advice through scientific peer reviews on our
regulatory decisions, policies, methods and tools.

       New registration actions result in more pesticides on the market that meet the strict FQPA
pesticide risk-based 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 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.
     Adoption of Genetically Modified Plant
         Incorporated Protectant Crops

    United States, 1995 - 2000 (percent of acres)
                                 - HT Soybeans
                                 Bt Corn
                                 HTCorn
                                 Bt Cotton
                               -*-HT Cotton
                               •-*- Bt/H Cotton
                                  HT-Hertiicufc Talcum!
                                  ft.t&ciltllsthllringenti*
  Souicc: Based on Ceua from ERS/NASS--Sun«v
website at hrtp://www.epaigov/pesticides.
       In addition to setting the requirements
for  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
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.

       To support the Food Quality Protection Act (FQPA), EPA must develop the tools (methods,
models, approaches) and quality exposure data for characterizing aggregate risks from exposure to
pesticides in order to reduce uncertainty in risk assessments.  The 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.
                                           III-5

-------
       EPA's research program will continue to focus on: 1) developing and validating methods to
identify and characterize, as well as models to predict, the potential  increased susceptibility to
human health effects experienced by infants and children; 2) identifying and understanding major
exposure routes, pathways, and processes, and developing  theoretical and experimentally based
multipathway exposure models for pesticides and other toxic substances; and 3) addressing the
adequacy of current risk assessment methods and providing the necessary risk assessment guidance.
Strategic Objectives and FY 2003 Annual Performance Goals

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.

•   .   Occurrence of residues of carcinogenic and cholinesterase inhibiting neurotoxic pesticides
       on foods eaten by children will have decreased by 20 percent (cumulative) from their
       average 1994 to 1996 levels.

•      At least six percent of acre-treatments will use applications of reduced risk pesticides.

Eliminate Use on Food of Pesticides Not Meeting Standards

•      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.

•      By the end of 2003 EPA will reassess a cumulative 68% of the 9,721 pesticide tolerances
       required to be reassessed over ten years and complete reassessment of a cumualtive 75% of
       tolerances of special concern in protecting the health of children.

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 and new
uses, and handling experimental use permits and emergency exemptions.
                                          III-6

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       In 2003, 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 are
generally presumed to pose lower risks to consumers, lower risks to agricultural workers, and lower
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

       In FY 2003, the Agency will continue its review of older pesticides and move forward
toward its ten year statutory deadline of reassessing all 9,721 tolerances, after meeting the statutory
deadline of reassessing a cumulative 66 percent of those tolerances by August 2002. The Agency
will also continue to develop tools to screen pesticides for their potential to disrupt the endocrine
system. In 2003, EPA will work toward completing 17 Reregistration Eligibility Decisions (REDs),
750 product reregistrations and 225 tolerance reassessments.

       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 2003, EPA will
continue its effort to reduce dietary risks to children, by completing approximately a cumulative 75
percent of these tolerances of special concern.
      Cumulative Percentage of Reregistration Eligibility Decision (RED) Cases to be Completed by
                                      (2002-2006 are estimates)
       % 600
       ,5550                                 -     -
       c                                                   89%
       | 500                       ____
       •I 450              ____     77%'

              ~          72%

                 2000      2001       2002      2003       2004      2005       2006

                     This is the Agency's estimated progress toward completing 100% of REDs by 2006.
       Two widely used groups of pesticides, organophosphates and carbamates, are believed to
pose higher risks, particularly to children. Curtailing or restricting the use of these pesticides will
significantly change current farming practices that have relied upon them, by adopting integrated
                                           III-7

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pest management strategies that draw on cultural, biological, and mechanical techniques as well as
chemical. With new strategies comes a steep learning curve on how to use them effectively. This
transition requires broad input and participation by stakeholders to minimize adverse, unintended
consequences on agriculture. To achieve input, EPA developed a special process for its stakeholder
for addressing data analysis and regulatory requirements, protocols, and scientific and public review
as the Agency continues to reduce risks posed by these pesticides through regulatory actions.  The
Agency will continue this important dialogue with stakeholders as we protect human health and the
environment by assessing risks of other groups of pesticides.

       EPA's authority to collect Reregistration Maintenance Fees expires at the end of FY 2002
under the 2002 appropriations bill for the Agency. The 2003 request 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 funded by fee revenue starting in March 2003.

       The  Reregistration program was  accelerated by the 1988 amendments to FIFRA  and
enhanced by  FQPA,  which includes  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 and determines whether existing tolerances protect
human health and the environment. The findings determine whether the products registered under
this chemical are eligible for reregistration.  The  Agency's progress in achieving goals  for
production of REDs and its tolerance reassessment component are summarized in the chart.
       FQPA  added considerably more complexity into the  pesticide reregistration process
lengthening  the "front end" of reregistration. These  requirements include considering aggregate
exposure and cumulative risk in our risk assessments, implementing new processes to  increase
involvement of pesticide users and other stakeholders, and ensuring a reasonable opportunity for
agriculture to make the transition to new, safer pest control tools and practices. Over the longer run,
these  changes will enhance protection of human health and the environment.

       Pesticide reregistration is a statutory requirement under the 1988 amendments to FIFRA.
Under the law, all pesticides registered prior to November 1984 must be reviewed to ensure that they
meet  current health and safety standards.   The 1996 Food Quality  Protection  Act requires the
reassessment of pesticide  tolerances by 2006.  Many pesticides must be reviewed under both
statutes.

       The program has been working to integrate new FQPA requirements with the reregistration
program to avoid duplication and increase efficiency.  Implementing FQPA has also consumed time
and effort as the technical challenge posed by reregistration of older pesticides has been increased by
the health and safety enhancements of FQPA, including:

•  review of inert ingredients;
•  reform of the antimicrobial review process;
•  transparency of our regulatory decisions;
•  incorporation of aggregate and cumulative risk into our reviews;
•  special protection for infants and children; and
                                          III-8

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•  endocrine screening of pesticides, minor use enhancements and reduced risk  registration
   emphasis.

       These and other additional requirements required that the Agency revise, in some cases
overhaul, its existing policies, procedures, process, and databases.  The Agency also needed to
consider a  reasonable  transition to  FQPA for agriculture, and thus a substantive  stakeholder
participation process had to be developed for input from those affected. All these considerations
resulted in the temporary slow-down of the program.

       By the end of FY 2003, EPA expects to have implemented EPA's science policies, including
the cumulative risk policy, to meet the ten-year tolerance reassessment deadline. 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.

       Additionally, to meet another FQPA need, EPA is developing a process for periodic review
of pesticide registrations. This new  program will update all pesticide registrations using current
health standards, scientific data, risk assessment methodologies, program policies and effective risk
reduction measures. In 2003, the Agency will continue developing and refining the framework for
the registration review program.

Research

       In FY 2003, 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) - effectively engaging all
components of the risk paradigm.

       Specifically, exposure research will address major exposure data gaps, distributions of key
exposure factors (especially across age groups for children and exposures for  other susceptible
subpopulations), and uncertainties associated with the exposure assessment requirements for FQPA.
 Health effects research will also develop methods to evaluate the effects of cumulative exposures to
pesticides and toxic chemicals, including both long-term exposures and multiple acute exposures.
Risk assessment research will continue to compare pesticide exposures across age groups, identify
factors leading to higher exposures, and analyze data to improve the evaluation of exposure factors
for pesticide risk assessment.   Results  will support risk assessments  under FQPA and the
development  of Agency guidelines for cumulative risk  assessment through the EPA  Risk
Assessment Forum (ERAF). Risk management research will evaluate characteristics of commonly
used pesticides or pesticides of particular concern to determine which chemicals should be targeted
for development of risk management tools.

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

                                          III-9

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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.

       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.
                                         111-10

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                     Safe Food

Objective: 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)

Reduce Risks from Pesticide Residues in
Food
Environmental Program & Management
Rereg. & Exped. Proc. Rev Fund
Science & Technology
Total Workyears
FY2001
Actuals
• 844,288.8
$37,994.5
$3,790.4
$2.503.9
318.5
FY 2002
Enacted
$47,609.6
$45,325.3
$0.0
$2,284.3
L . 337.0
FY2003
Request
$45,290.4
$42,964.7
$0.0
$2,325.7-
331.1
FY 2003 Req.
v, FY 2002 Ena.
($2319.2)
($2,360.6)
$0.0
$41.4
-5.9
                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Endocrine Disrupter Screening Program
Facilities Infrastructure and Operations
Homeland Security
Legal Services
Management Services and Stewardship
Pesticide Registration
Pesticide Rerejpstration
Pesticide Residue Tolerance Reassessments
Safe Pesticide Applications
FY2001
Enacted
$209.7
$2,279.9
$4,250.0
$0.0
$996.7
$460.2
$29.613.9
$5.371.5
$1,177.4
$0.0
FY 2002
Enacted
$0.0
$1,860.4
$4,725.2
$602.6
$1,019.7
$504.0
$31,832.4
$6,227.0
$813.3
$25.0
FY 2003
Request
$0.0
$2,096.3
• $4,462.6
$0.0
$1,095.3
$420.6
$30,882.2
$5,673.4
$660.0
$0.0
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$235.9
($262.6)
($602.6)
$75.6
($83.4)
($950.2)
($553.6)
($153.3)
($25.0)
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FY 2003 Request

       This request highlights improving the safety of our food supply and continues emphasis on
implementing FQPA, especially in the protection of infants and children. The Agency will expand
partnerships with  the  United States Department of Agriculture (USDA),  Food  and Drug
Administration (FDA) and other  components of the Department of Health and Human Services
(HHS), and with the international Organization for Economic  and Cooperation Development
(OECD) and others to engage and share information with stakeholders and to develop and facilitate
the implementation of strategies for the public,  industry and agriculture to conduct a smooth
transition to safer pest  management for food crops.  EPA will continue to ensure that the best
available science is incorporated into the implementation of the statute.

       Pesticides currently on the market with  approved food uses include some  which are
suspected human carcinogens, neurotoxins or endocrine disruptors and thus may pose  significant
health concerns, especially to children. FQPA provides  unprecedented opportunities to protect
human health and to impact positively agricultural production techniques, lessening the overall risk
of pesticide use.  FQPA further requires that the Agency review pesticides on a periodic basis to
ensure that those registered for use meet the most current health standards. Through this registration
review, FQPA ensures  that when properly used, there is  "a reasonable certainty of no harm" to
human health or the environment.  The review of existing pesticides through reregistration and
tolerance reassessment combined with the availability of safer  pesticides through registration,
continues to improve the risk picture for 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 or crop grouping (use) the registrant
requests for the specific pesticide. The tolerance level is the legal limit for how much pesticide may
remain on a food. The Registration program gives priority to accelerated processing of reduced risk
pesticides which may substitute for products already on the market, thus giving farmers and other
users new tools which are better for health and the environment.

       There are many types of registration requests submitted by industry for EPA approval.
These include requests for registration of new active ingredients, new pesticides 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.

       FQPA also requires that EPA review inert ingredients added to pesticide products.  These
"inert" ingredients have no pesticidal properties; however, these agents are often chemically active
and must be reviewed for unintended effects on humans  and the environment.  Increased public
education and full ingredient disclosure (including inerts) on pesticide product labels must be
balanced to protect confidential business information (CBI) from being disclosed.
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       In March 2000, the Agency established a diverse workgroup with members from public
health, environmental, industry, academic, and state government organizations to address measures
to increase the availability of information about inerts to the public. The workgroup presented the
risk assessment methodology for inerts to the Pesticide Program Dialogue Committee (PPDC) in
December 2001. The Agency has made great strides in incorporating FQPA requirements into its
registration program, but as resources become more scarce, continued effort in inerts review may be
delayed due to more pressing priorities such as antimicrobial reregistration, tolerance reassessments
and reduced risk registrations.

       During the last  several years, the Agency has  engaged the public and the scientific
community in developing and reviewing nine science policies that shape  EPA's  approach to
screening pesticides.  While all  of the policies are significant, the requirements 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.
 Aggregate exposure brings issues of residential exposures and drinking water residues into the
equation. The extra ten-fold safety factor impacts risk assessments affecting children's health. A
lower factor can be used, "... only if, on the basis of reliable data, such margin will be safe for
infants and children."  In 2003, the Agency will continue implementation of its policy for assessing
cumulative risk for these groups of chemicals  and continue applying  this policy to pesticide
registration and reregistration decisions, further ensuring the safety of our food supply.

       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 FY 2003, EPA
will continue to work with the pesticide industry and farmers to explore new pest management
approaches and to provide a reasonable phase-out period 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.

       States and industry submit requests for registration actions to meet rapidly changing or
emerging needs, including petitions for temporary uses of pesticides to meet emergency conditions,
and for research purposes. The Agency allows for the unpredictability of agricultural conditions and
pest outbreaks and takes action to  meet emerging  needs.  These actions include issuance of
emergency exemptions under FIFRA sec. 18, which allows the use, for a limited time, of a pesticide
not registered for that specific purpose. Emergency conditions could include controlling a new pest
or the spread of a pest to new areas, or controlling an outbreak of a pest that poses a public health
risk, such as the West Nile virus spread by migration.  FIFRA addresses other special needs,
includingprovisions to register products by states for specific local uses not federally registered and
provisions for experimental use permits (under FIFRA sec. 5), which allow pesticide producers to
                                          III-13

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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).
                                                 Interregional Research Project No. 4

                                              The Interregional Research Project No. 4 (IR-
                                              4) helps minor crop producers obtain
                                              tolerances and registrations for pest control
                                              products.  It supports development of test
                                              data in support of registrations and tolerances
                                              for these products and prepares specific
                                              instructions on the use of pesticides which
                                              appear on the label of the pesticide product.
                                              The IR-4 was organized in 1963 by the
                                              Directors of State Agricultural Experiment
                                              Stations. Minor crops account for about 40
                                              percent of the total agricultural sales for the
                                              U.S.
       The   Agency   and   USDA   work
collaboratively   to    ensure   minor   use
registrations receive appropriate support. EPA
policy has defined minor uses as pesticide
usage on  crops grown on less than 300,000
acres.  Although  minor use pesticides are of
major significance in agricultural production
and to growers and consumers, they produce
relatively little revenue for their manufacturers,
considering  the  cost  of maintaining  these
registrations.  Without these small-scale but
vital  pesticide uses,  many  of the  fruits,
vegetables, and ornamentals grown in the U.S.,
worth billions of dollars, could not be produced
successfully. In FY 2003, 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
environment, and the potential exposures of workers and consumers to the biotechnology product.
Other areas of concern include potential impacts on nonrtarget 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.

       In 2001, EPA finished the Plant Incorporated Protectant (PIP) Rule which clarifies which
plant-incorporated protectants are subject to review under FIFRA and FFDCA and clarifies which
ones are exempt. This rule reaffirmed that the plant itself is still subject to USDA authorities, while
the plant-incorporated protectants are subject to  EPA authorities.  The new  rule ensures that
genetically engineered plant-incorporated protectants meet federal safety standards through as
rigorous an EPA evaluation as traditional pesticide registrations. In  FY 2002 and 2003, additional

work needs to be done  on the regulatory framework to assure  that bioengineered plants are
protective of human health and the environment.
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Reduced Risk Chemicals and Bippesticides
       In FY 2003, 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 FY 2003, expects to register 13 new  reduced risk pesticides.

Reduce Agricultural Use of Potential Carcinogenic or Neurotoxic  Pesticides

       EPA is moving deliberately to minimize exposure from currently marketed pesticides with
the highest potential to cause cancer or neurotoxic effects. In 2003, EPA will continue to address
these chemicals and make decisions on how to minimize potential risk resulting from their use. The
Agency will continue implementing its cumulative risk policy, using the best available science and
incorporating stakeholder concerns. The development and registration of appropriate alternatives to
these risky chemicals will remain a
priority  for  the  program.   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.
       FQPA 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.)
               Foods that Children Eat

The following 19 foods that children commonly eat were
surveyed for organophosphate 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 arid frozen), sweet
peas (canned and frozen), sweet potatoes, tomatoes, and
wheat. By the end of 2003, regulatory actions by EPA,
including expedited registration of safer pesticides,
should result in a 20 percent reduction of occurrence of
residues from carcinogenic  and neurotoxic pesticides on
these foods from 1994-1996 levels.
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FY 2003 Change from the FY 2002 President's Budget
EPM
* *       (-$1,5 00,000) This decrease reflects non-continuation of one-year Congressional
         Directive for Safer Pesticide registration.

**       (-$602,600, -1.3 FTE) This decrease reflects return to base levels in registration
         completion of preliminary analyses of new antimicrobial registrations for products
         targeting potential bioterrorism threats, funded by the FY 2002 Emergency
         Supplemental.

•*       (-$1,195,000, -3.0 FTE) This decrease reflects shifts in FTE and administrative overhead
         to mirror fee structure changes as the Maintenance fee expires and the new Tolerance Fee
         is implemented.

Annual Performance Goals and Measures
Decrease Risk from Agricultural Pesticides
In 2003   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.
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 2002   Provide timely decisions to the pesticide industry on the registration of active ingredients for conventional pesticides.
In 2001   The Agency registered 9 new chemicals, exceeding its target by 2, and 267 new chemicals, underperforming its target by 83.
In 2001   The registration of new agricultural pesticides, and reregistration of older agricultural pesticides, were done under the strict health-
             based standard of FQPA: "reasonable certainty of no harm." "Safer" pesticides are those that meet a stricter set of criteria.
Performance Measures:                                    FY200I           FY2002          FY2003
                                                       Actual            Enacted           Request
Register safer chemicals and biopesticides                              92               105               118     Regist. (Cum)
New Chemicals                                                   53               60                67     Regist. (Cum)
New Uses                                                     1896              2329              2679     Actions (Cum)

Baseline:  The baseline year is 1996; baseline quantities are 0. 1996 is the year FQPA was enacted with its new risk reduction, safety standard
             "reasonable certainty of no harm" for pesticides used on foods. Cumulative totals measured from baseline for .safer chemicals.
             biopesticides, new chemicals, and new uses are displayed because this more clearly shows progress implementing FQPA than
             would a display of single-year results.
Reduce use of highly toxic pesticides
In 2003   Occurence of residues of carcinogenic and cholinesterase inhibiting neurotoxic pesticides on foods eaten by children will have
             decreased by 20 percent (cumulative) from their average 1994 to 1996 levels.
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   Data will be available in March 2002.
Performance Measures:                      -              FY2001           FY 2002          FY 2003
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                                                  Actual           Enacted          Request
 Reduction of detections on a core set of 19 foods eaten by                              15%            20%     Reduced Detect.
 children relative to detection levels for those foods reported
 in 1994-1996.


 Baseline: Percent occurrence of residues of FQPA priority pesticides (organophosphates and carbamates) on samples of children's foods in
            baseline years 94-96. Baseline percent is 33.5% of composite sample of children's foods: apples, apple juice, bananas, broccoli,
            carrots, celery, grapes, green beans (fresh, canned, frozen), lettuce, milk, oranges, peaches, potatoes, spinach, sweet corn (canned
            and frozen), sweet peas (canned and frozen), sweet potatoes, tomatoes, and wheat.

 Reduced Risk Pesticides

 In 2003  At least six percent of acre-treatments will use applications of reduced risk pesticides.

. In 2002  At least one percent of acre-treatments will use applications of reduced risk pesticides.

 Performance Measures:                                FY2001    .      FY2002         FY2003
                                                  Actual           Enacted          Request
 Percentage of acre treatments with reduced risk pesticides                               1%             6%     Acre Treatments



 Baseline: Baseline is 1998 acre-treatments: 3.6% of total acreage. Each year's total acre-treatments (all pesticides and reduced risk pesticides),
            reported by USDA's National Agricultural Statistical Survey (NASS), serve as the basis for computing the percentage of acre-
            treatments using reduced risk pesticides. Acre-treatments count the total number of pesticide treatments each acre receives each
            year.

 Verification and  Validation of Performance Measures


 Performance Measures:


 •Number of registrations of reduced risk pesticides.

 •Percentage of acre treatments  with reduced risk pesticides.
 •Reduction of pesticide detection on foods  eaten by children.


 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.  Additionally, the Program

 divisions maintain manual counts of the registrations of reduced risk pesticides. The information is
 provided to the Office Director's immediate office for consolidation and recordkeeping.


 Data Source: The Office of Pesticide Programs (OPP) Staff (reviewers)


 QA/QC Procedures: A reduced  risk pesticide must meet  the criteria  set forth in Pesticide
 Registration Notice 97-3, September 4,1997. Reduced risk pesticides include those which reduce

 the risks to human health;  reduce the risks to non-target  organisms; reduce the potential for
 contamination of groundwater, surface  water or other valued  environmental resources; and/or
 broaden the adoption of integrated pest management  strategies, or make such strategies more

 available or more effective.  In addition, biopesticides are generally considered safer (and thus
 reduced risk).
                                                Ill-17

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Data Quality Review: Management reviews the program counts and signs off on the decision
document which is then forwarded to the Office Director.

Data Limitations: None. All required data must be submitted for the risk assessments before the
pesticide, including a reduced risk pesticide, is registered. If data are not submitted, the pesticide is
not registered. A reduced risk pesticide must meet the criteria set forth in PRN 97-3. If it does not
meet the criteria, it is not reviewed as a reduced risk, but as a conventional active ingredient. All risk
assessments are subject to public and scientific peer review,

New/Improved Data or Systems: The OPPIN (Office of Pesticide Programs Information Network)
consolidates various OPP program databases.  Phased implementation of the OPPIN began in FY
2001 and will continue through FY 2003.

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 health and environmental quality. EPA uses PDP data to improve dietary risk assessment to
support the registration of pesticides for minor crop uses.

       PDP is critical to implementing the Food Quality Protection Act. The system provides
improved data collection of pesticide residues, standardized analytical and reporting methods, and
increased sampling of foods most likely consumed by infants and children.  PDP sampling, residue,
testing and data reporting are coordinated by the Agricultural Marketing Service using cooperative
agreements with ten participating states representing all regions of the country. PDP serves as a
showcase for Federal-State cooperation on pesticide and food safety issues.

       EPA is continuing the development of the National Pesticide Residue Database (NPRD), in
coordination with chemists and information management specialists from FDA, USDA, California
and Florida. This database will include automated data validation.  The system will be integrated
with the other EPA databases.

       FQPA requires EPA to consult with other government agencies on major decisions. Further,
EPA, USDA 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.
                                         Ill-18

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       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
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, Drug and Cosmetic Act (FFDCA)

Food Quality Protection Act (FQPA) of 1996
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                     Safe Food

Objective: 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
Rereg. & Exped. Proc. Rev Fund
Science & Technology
Total Workyears
FY2001
Actuals
$80,660.5
$58,202.0
$12,857.8
$9,601.6
498.6
FY 2002
Enacted
$62,927.5
$50,344.6
$0.0
$12,582.9
443.2
FY 2003
Request
$64,524.2
$52,478.3
$0.0
$12,045.9
439.0
FY 2003 Req.
v. FY 2002 Ena.
$1,596.7
$2;133.7
$0.0
($537.0)
-4.2
                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Endocrine Disrupter Screening Program
Facilities Infrastructure and Operations
Homeland Security
Legal Services
Management Services and Stewardship
Pesticide Reregistration
Pesticide Residue Tolerance Reassessments
Research to Support FQPA
Science Coordination and Policy
FY2001
Enacted
$279.5
$3,457.0
$6,354'.9
$0.0
5372.3
$860.0
$27,621.2
$13,616.1
$10,905.5
$275.8
FY 2002
Enacted
$0.0
$3,388.7
$4,575.2
$876.8
$433.5
$931.5
$27,170.8
$13,858.5
$11,377.4
$315.1
FY 2003
Request
$0.0
$3,264.1
$5,154.0
$0.0
$465.5
$854.6
$38,592.4
$4,607.9
$10,821.3
$76414
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($124.6)
$578.8
($876.8)
$32.0
($76.9)
$11,421.6
($9,250.6)
($556.1)
$449.3
                                       m-20

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FY 2003 Request

       Pesticides licensing work involves both registration of new chemicals and the review of older
chemicals.  This objective focuses on the review of older pesticides as well as some of the scientific
effort involved in identifying potential endocrine disrupting chemicals. The reregistration and the
tolerance reassessment programs look at older pesticides and review their safety in light of the latest
science and the new FQPA safely  standards.  During the Reregistration and the Tolerance
Reassessment processes, EPA reviews data and studies submitted by registrants supporting the
reregistration or the  approved use on food (a* tolerance) of a pesticide in order to ensure  that
pesticides meet the stricter standard mandated by FQPA. During this review, the Agency conducts a
risk assessment which forms the basis for the Agency's decisions..

       Risk assessments involve  a series of sophisticated analyses of the potential health and
environmental effects resulting from exposure to a chemical through various means. FQPA brought
a number of new analyses into these risk assessments. 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 or reregister a pesticide. 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).

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. 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. These findings determine whether the products
registered under this chemical are eligible for reregistration. In 2003, the Agency will complete 17
REDs.  EPA plans to complete issuing  REDs for active ingredients  by FY 2006 and for inert
ingredients by FY 2008.

       Once the reregistration or tolerance reassessment analysis is performed, findings may call for
modifications in ways the pesticides are used, in order to reduce risks.  Options for risk reduction
range from revocation of the tolerance to modifications in use and 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.

       The FY 2003 request includes additional funds for reregistration of antimicrobials. EPA has
made great strides in addressing FQPA requirements and incorporating them into its core programs.
The Agency has met much shorter review periods for antimicrobials and virtually eliminated the
backlog in  this area,  however, success in these and other areas, has meant some trade-offs were
necessary-.  These new resources will support the antimicrobial tolerance reassessments required to

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meet the FQPA deadline for completing tolerance  reassessments by  August 2006 and for
maintaining the established goal for reregistration.

       EPA's authority to collect Reregistration Maintenance Fees expires at the end of FY 2002
under the 2002 appropriations bill for the Agency. The 2003 request 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 funded by fee revenue starting in March 2003.

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 2003, EPA will complete the final rule, 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 next deadline, which the Agency
expect to meet, is to reassess  66 percent of these tolerances  by August 2002.   In FY 2003, the
Agency will continue its reassessment of these tolerances completing approximately a cumulative 70
percent.

       As mandated by FQPA, the Agency  continues to  ensure that  sound science is applied
consistently in our pesticide reviews and that this process  includes stakeholder and scientific
community input. The Agency has worked extensively with stakeholders through the Pesticide
Program Dialogue Committee (PPDC) and the Committee to  Advise on Reassessment and
Transition (CARAT) to ensure transparency in decision making and a fuller understanding of the
implications for growers, producers and the public. EPA will continue to encourage transition to
safer pesticides, and to coordinate closely with USD A, industry and commodity groups in finding
alternatives and sharing information.  By FY 2003, the Agency will have completed review of a
group of higher risk pesticides, the  organophosphates, which, because of their wide use, heavily
affect the farming  community. To  address the issues around organophosphate replacement, the
Agency and USDA collaborated in development and implementation of a review process which
greatly expanded public participation. This process will continue to be improved and expanded, as
necessary as we continue our review of other groups of high risk, older pesticides.

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       The risk assessment is the basis for  decision-making  on reregistration and tolerance
reassessment and 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. FQPA requires new assessment  analyses, looking at both aggregate risk and cumulative
exposures to pesticides with a common mechanism of toxicity.  The science and policies behind
these assessments is  complex and the standards developed will impact many pesticides on the
market. For this reason, EPA has sought the advice and peer review of the scientific community as
well as stakeholders. This intensive effort lead to a lag in finalizing some tolerance reassessments in
2000 and 2001.  With the final policies in place in 2002, the Agency will complete processing of the
reassessments to meet its FQPA deadlines, and in 2003 will commence the last phase of the FQPA
tolerance reassessments requirements.

       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
and other tolerances, and Group  3 includes the remaining pre-FQPA and post-1984 pesticides.
Some tolerances in all groups have been reassessed as part  of the work already underway  in the
reregistration program.  Status of reassessments is as follows:
                                         111-23

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                  9

                  8

                  7

                  6
                U)
                Is
                co

                I"
                  3

                  2

                  1

                  0
Remaining
Reassessed
                       Group 1     Group 2     Group 3
         Status of Tolerance Reassessment by Priority Group (as of 12/31/01)

•Group 1: 2,428 reassessments out of 5,546 (56 percent remaining and 44 percent reassessed)
•Group 2: 506 reassessments out of 1,928 (74 percent remaining and 26 percent reassessed)
•Group 3: 3,832 reassessments out of 2,247 (65 percent remaining and 35 percent reassessed)

EndocrineDisrupters

       Fish and wildlife in some areas of the world have been affected by chemicals that interfere
with the endocrine system resulting in abnormal development, low fertility and greater susceptibility
to disease. The link to human disease is less clear, particularly at low ambient environmental levels.
 Effects have been seen after high exposures.   Since the human endocrine system helps guide
development, growth, reproduction and behavior, possible endocrine disruption is an important
issue, especially for children.  The concern that chemicals may affect the endocrine system of
humans led to the inclusion of a provision in the Food Quality Protection Act (FQP A) mandating
that EPA test pesticides for endocrine disrupting effects on human health. Endocrine Disrupting
Chemicals are also addressed in the Safe Drinking Water Act Amendments of 1996.

       Work on pesticide and chemical endocrine disruptors crosses two EPA goals, relating to both
pesticides and all other toxie chemicals (Goals 3 and 4).   For details concerning  the Endocrine
Disrupter Program and its screening activities, consult Goal 4, Objective 3. For Goal 3, in 2003, the
Agency will continue its efforts to develop alternative, non-animal methods that can be validated and
incorporated into its programs.
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Research

       The Food Quality Protection Act of 1996 (FQPA) identifies science needs consistent with
characterizing and evaluating aggregate and cumulative exposures to pesticides and the effects
associated with these relevant exposures. The FQPA also identifies the need to conduct research to
ensure the safety of children. Aggregate exposure is defined as the exposure to a single pesticide
through all routes and pathways, while cumulative exposure is defined as the exposure to multiple
pesticides through all routes and pathways. Research in this objective focuses on the exposures and
effects associated with children and other susceptible and/or sensitive subpopulations.  The FQPA
research program is designed to provide the scientific foundation for assessing aggregate and
cumulative risk and susceptibilities of sensitive subpopulations (including children) from exposure
to pesticides in order to reduce uncertainty in risk assessments conducted under FQPA.

       Major uncertainties exist related to the degree to which current risk assessment practices
provide adequate protection to those segments of the population (with a focus on protecting
children) who are more sensitive than the average individual. These uncertainties elicit questions
about the health endpoints of greatest concern in children, age-related differences in exposure, age-
related physiological differences that might affect internal exposures and health outcomes, and
whether current  risk assessments adequately protect children and other sensitive subpopulations
from unreasonable risk.  Research will address questions about exposures experienced by children
and other susceptible subpopulations and whether they produce quantitatively  or qualitatively
different effects  than those experienced by adults.

       Other uncertainties relate to our ability to assess risk from aggregate exposure to single
chemicals and to cumulative  exposures to multiple pesticides  and other chemicals with like
mechanisms of  action.  EPA research will address questions about the  level  of aggregate and
cumulative exposures, the effects resulting from multiple, short-term exposures to various sources
and the characteristics of toxic pesticide mixtures in the environment that are important for assessing
risks to humans.

       In FY 2003, health effects research will yield new and improved test methods to evaluate the
effects of environmental exposure  to pesticides  and other chemicals in sensitive  subpopulations.
Research will also develop methods to evaluate the effects of cumulative exposures to pesticides and
toxic chemicals,  including both long-term exposures and multiple acute exposures. Specifically, this
work  will determine if exposure to  multiple pesticides with a similar mode of action produce non-
additive interactions, and if effects/interactions vary between adult and juvenile animals.  The
development of models (e.g, physiologically-based  pharmacokinetic, biologically-based  dose-
response, and structure-activity relationship models) to extrapolate findings and predict effects is
also included in  this effort.

       Exposure research will address major exposure data gaps, distributions of key exposure
factors  (especially across age groups  for children and other susceptible subpopulations), and
uncertainties associated with the exposure assessment requirements for FQPA.  These efforts will
produce: 1) tools and methods for conducting exposure research; 2) high quality exposure data that
                                          111-25

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identifies  the key factors associated  with aggregate  and cumulative pesticide exposures and
characterizes the distributions of pesticide exposures for children, other susceptibles, and the general
population; and 3) a toolbox of source-to-dose probabilistic exposure models for extending the
exposure research results, integrating exposure research with effects research, and identifying new
science needs to  support the  FQPA  mandates.   The Agency will use these results to  better
characterize, assess, and manage aggregate and cumulative exposures to pesticides and toxics.

       EPA will initiate a major population-based field study in FY 2003 that will focus on young
children's aggregate exposure to pesticides in homes, day care centers, and schools (this research
will be leveraged with corresponding research being planned and conducted within the core human
health research program). This study will be completed in F Y 2004 with delivery of major products
in F Y 2005.  Study results will be used to: 1) evaluate and refine a protocol for measuring aggregate
exposure for children of different age and developmental groups; 2)  verify those pathways and
activities that represent the highest exposures for children; 3) generate high quality distributional
data on children's exposure concentrations, estimated exposures, and exposure factors; and 4)
develop a measurement database for model evaluations, model improvement, hypothesis generation,
and risk assessments.

       Additionally, in F Y 2003 the Agency will continue its efforts to address uncertainties in the
areas of intermittent exposure and cumulative risk. EPA will develop 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). The emphasis of this research will be on developing a foundation for cumulative
risk assessment methodology. EPA will also use the results from the exposure and effects research
programs to develop improved risk management strategies and tools for reducing potential health
risks to children and other highly exposed populations.

       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 a 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
exposure, source(s), pathway(s), and exposure-to-dose.

       Understanding these relationships will 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, andtoxicities.

       Risk assessment research, another facet of the FQPA research program, will continue to
focus on developing methods for combining exposures from different pathways, assessing exposure-
dose-response relationships for pesticides and other compounds with common modes of action, and
                                          111-26

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reducing uncertainties in risk assessment for children. Analyses using data from available sources
(e.g., the National Human Exposure Assessment Survey - NHEXAS and the National Health and
Nutrition Examination Survey - NHANES) will be conducted focusing on aggregate exposure and
risk to multiple chemicals from multiple pathways, particularly for children.

       The Agency will continue to compare pesticide exposures across age groups, identify factors
leading to higher exposures, and analyze data to improve the evaluation of exposure factors for
pesticide risk assessment.  Results will support risk assessments under FQPA and development of
Agency guidelines for cumulative risk assessment through the EPA Risk Assessment Forum.

       The risk management research program, the final component in the risk paradigm structure,
will evaluate characteristics of commonly used pesticides or pesticides of particular concern to
determine which chemicals should be targeted for development of risk management tools.  Risk
management tools will be identified that have the potential to reduce exposure from the identified
chemicals and  research projects specific to the chosen chemicals will begin.

       In  summary,  the FQPA research program  provides direct support to  EPA's Office of
Prevention,  Pesticides,  and Toxic  Substances (OPPTS) through the  development of specific
methods, data,  tools, and protocols that will be used to develop new or revised test guidelines under
the Toxic Substances Control Act (TSCA) and the Federal Insecticide, Fungicide, and Rodenticide
Act (FIFRA) as amended by FQPA.  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 2003 Change from the FY 2002 President's Budget

EPM

••     (+$2,000,000) This increase will be directed to increased reregistration of antimicrobial
       pesticides and associated tolerance reassessments. Reregistration of antimicrobials is critical
      " to meeting our final statutory deadlines for tolerance  reassessment.

•*     (+$9,000,000,73.8 FTE) Appropriated funds are shifted from the tolerance program, to the
       reregistration program.  The reregistration program will no longer be funded by the
       Maintenance fee, which expires at the end of FY 2002.

••     (-$9,178,000 -73.8 FTE) Appropriated funds are being shifted from tolerance reassessment
       program and the reregistration program, as described above.  The tolerance reassessment
       program will be funded through the new tolerance fee rule beginning in March 2003.

*•     (-$862,000, -1.3 FTE) This decrease reflects return to base levels in reregistration after
       completion of preliminary analysis for the reregistration of antimicrobials which may be
       effective  against bioterrorism threats including anthrax.   The effort was funded by the
       Emergency Supplemental.
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* •      (+$760,700)  Resources, dollars and FTE, associated with rent are allocated in proportion to
        Agency-wide FTE located in each goal, objective.  Resources, dollars and FTE, associated
        with utilities, security  and human  resource operations  are allocated in  proportion to
        Headquarters FTE located in each goal, objective. Changes reflect shifts in FTE between
        goals and objectives. Resources, dollars and FTE, associated with contracts and grants are
        allocated in proportion to Headquarters' contracts and grants resources located in each goal,
        objective.   Changes  in these  activities reflect  shifts in resources between goals and
        objectives.   (Total  changes  -  rent:   -$3,569,400, utilities: +$3,468,000,  Security:   -
        $9,103,900.  Nominal increases/decreases occurred in human resource operations, grants
        and contracts related activities.)

Research

S&T

•*   .   (-$765,000) This reduction eliminates funding for the Congressionally-directed  research.

•*      (+$112,900,1.0 FTE) This increase in resources will be used to coordinate EPA scientific
        participation in regulatory development with program office  on major rules.


Annual Performance Goals and Measures

Reassess Pesticide Tolerances
In 2003   Assure that pesticides active ingredients registered prior to 1984 and the products that contain them are reviewed to assure adequate
            protection forhurfian health and the environment.Also consider the unique exposure scenarios such as subsistence lifestyles of
            Native Americans in regulatory decisions.
In 2003   By the end of 2003 EPA will reassess a cumulative 68% of the 9,721 pesticide tolerances required to be reassessed over ten years and
            complete reassessment of a cumnaltive 75% of tolerances of special concern in protecting the health of 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 environment.Also consider the unique exposure scenarios such as subsistence lifestyles of
            Native Americans in regulatory decisions.
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 67% of the 893 tolerances having the greatest potential impact on dietary risks to children.
In 2001   EPA reassessed 40% of tolerances requiring reassessment under FQPA and issued a cumulative 72% of total REDs required,
            achieving both targets.
In 2001   EPA reregistered 856 products, exceeding its target by 14%.
Performance Measures:                                 FY2001         FY2002          FY2003
                                                   Actual           Enacted           Request
Tolerance Reassessment                                       40%            66%            68%    Tolerances(Cum)
REDs                                                   71.6%           76.4%            83%    Decisions (Cum)
Product Reregistration                                          856             750             750    Actions
Tolerance reassessments for top 20 foods eaten by children             43.5%            67%            75%    Tolerances(Cum)

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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 die 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.

Verification and Validation of Performance Measures

Performance Measures:

•Number of tolerance reassessments
•Number of REDs
•Number of Product Reregistrations

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 counts 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: OPP Management verifies/signs decision to count tolerance as reassessed or
not,  as a  result of the Reregistration  Eligibility Decision or decision to approve registration.
Additionally, the Program Divisions maintain counts of the tolerances reassessed. The information
is provided to the Office Director's immediate office for consolidation and record-keeping.

Data Quality Review: Management reviews the program output counts. Tolerance counting rules
are reviewed for consistency across  the programs.  Decisions are made by management as to whether
the tolerance requires cumulative risk assessment or individual risk assessment. This decision is
made based on whether the tolerance belongs to a group of chemicals which have a common mode
oftoxicity.

Data Limitations: Because the measure is a numeric count, there are no data limitations. Data
needed for  registration or reregistration/tolerance reassessment are provided by the pesticide
registrant. If the data required for the risk assessment is not provided with the original package, then
the information is requested from the registrant. The pesticide is not registered or reregistered until
the required data are submitted. Should the registrant choose not to support a reregistration and
associated tolerance reassessments, the Agency may cancel the pesticide involved.

New /  Improved Data  or Systems:  The  OPPIN (Office of Pesticide Programs Information
Network) database consolidates various OPP program databases. Phased implementation of the
OPPIN began in FY 2001 and will continue through FY 2003. Number of registrations of reduced
risk pesticides.

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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. Additionally, the Program
Divisions maintain manual counts of the registrations of reduced risk pesticides. The information is
provided to the Office Director's immediate office for consolidation and recordkeeping.

Data Source: The Office of Pesticide Programs (OPP) Staff (reviewers)

QA/QC Procedures: 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 non-target organisms; reduce the potential for
contamination of groundwater,  surface water or other valued environmental resources; and/or
broaden the adoption of integrated pest management strategies, or make  such strategies more
available or more effective. In  addition, biopesticides are generally considered safer (and thus
reduced risk).

Data Quality Review: Management reviews the program counts and signs off on the decision
document which is then forwarded to the Office Director.

Data Limitations: None. All required data must be submitted for our risk assessments before the
pesticide is registered. This  applies to reduced risk candidates, as well. If data are not submitted, the
pesticide is not registered. A reduced risk pesticide must meet the criteria set forth in PRN 97-3. If it
does not meet the criteria, it is not reviewed as a reduced risk, but as a conventional active
ingredient. All risk assessments are subject to public and scientific peer review.

 New/Improved Data or Systems: The OPPIN (Office of Pesticide Programs Information Network)
consolidates various OPP program databases. Phased implementation of the OPPIN began in FY
2001 and will continue through FY 2003.

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.
                                         111-30

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       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 Endocrine Disrupters Screening and Testing Advisory  Committee  (EDSTAC)--
       established to give advice and counsel on developing a strategy to screen and test endocrine
       disrupting chemicals and pesticides—included representatives of industry, state and federal
       government, public health,  environmental, labor  organizations,  small businesses and
       academia.  In 2001, a new Endocrine Disrupter Methods Validation Subcommittee was
       established  under the National Advisory Committee  for  Environmental Policy and
       Technology (NACEPT) to provide guidance regarding the design, conduct and interpretation
       of  studies  to  validate the endocrine  disruptor screening and testing program.   The
       Subcommittee members represent a wide range of stakeholders drawn from the scientific
       community as well as federal and non-profit organizations.

• •     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-ad vice 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.

       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,
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and growth development. NIEHS, through the National Toxicology Program (NTP), develops new
technologies for high throughput toxicity testing, and is responsible for one-third of all toxicity
testing performed worldwide.

       The 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 toxics, as well as to hazards resulting from technologic or natural
disasters.  These are mainly surveillance and epidemiology studies and NCEH is particularly
interested in studies that benefit children, the elderly, and persons with disabilities. The NCEH
laboratory supports many of EPA's studies and is the analytical laboratory for samples collected in
the EPA-sponsored pesticide study in the National Health and Nutrition Examination Survey -
NHANES-4, being conducted by the National  Center for Health Statistics  (NCHS)  of CDC.
NHANES-4  is a 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.  In
FY 2003, EPA will collaborate with NCHS to produce an analysis of data collected on pesticides in
NHANES-4.

      The National Institute of Child Health and Human Development (NICHD) is the lead agency
for conducting the National Children's Study (NCS) of environmental influences on children's
health and development.  EPA is part of a consortium of Federal agencies  that are  planning,
developing and implementing the NCS.

Statutory Authorities:

Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)

Federal Food, Drug and Cosmetic Act (FFDC A)

Food Quality Protection Act (FQPA) of 1996

Toxic Substances Control Act (TSCA)

Research

Food Quality Protection Act of 1996 (FQPA)
Federal Insecticide, Fungicide and Rodentieide Act (FIFRA)
Toxic Substances Control Act (TSCA)
Federal Food, Drug, and Cosmetic Act (FFDCA)
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Goal 4: Preventing Pollution

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Environmental Protection Agency
2003 Annual 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-15
        Reduce Risks from Lead and Other Toxic Chemicals	IV-25
        Manage New Chemical Introduction and Screen Existing Chemicals for Risk	,	 IV-33
        Ensure Healthier Indoor Air	,	IV-50
        Facilitate Prevention, Reduction and Recycling of PBTs and Toxic Chemicals	IV-61
        Assess Conditions in Indian Country	IV-78

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                           Environmental Protection Agency

           FY 2903 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)

Preventing Pollution and Reducing
Risk in Communities, Homes,
Workplaces and Ecosystems
Reduce Public and Ecosystem Risk from
Pesticides
Reduce Risks from Lead and Other
Toxic Chemicals
Manage New Chemical Introduction and
Screen Existing Chemicals for Risk
Ensure Healthier Indoor Air.
Facilitate Prevention, Reduction and
Recycling of PBTs and Toxic Chemicals
Assess Conditions in Indian Country
Total Workyears
FY2001
Actuals
$305,072.6
$54,262.3
$33,927.9
$69,315.0
$39,190.4
$41,723.8
$66,653.2
1,131.2
FY2002
Enacted
$321,649.7
$56,026.3
$36,423.5
$75,337.8
• $39,670.1
$48,755.4
$65,436.6
1,208.2
FY 2003
Request
$326,651.9
$55,409.8
$36,355.9
$77,538.2
$40,322.7
$46,115.9
$70,909.4
1,193.9
FY 2003 Req,
v.FY2002Ena.
$5,002.2
($616.5)
($67.6)
$2,200.4
$652.6
($2,639.5)
$5,472.8
-14.3
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  and/or toxic
chemicals.

       While EPA  continues to implement "the reasonable certainty  of no harm" standard
mandated by the FQPA in its regulatory decisions, it also works with pesticide users on adopting
less toxic methods of pest management that reduce  or eliminate toxic pesticides entering indoor
and outdoor environments.
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       Regarding industrial emissions of toxic chemicals, in 1999 Toxics 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 generate 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. The Strategic Agricultural
Partnership Initiative and the Pesticide Environmental Stewardship Program  cooperate  with
USDA, states, and non-governmental organizations to demonstrate with farmers integrated pest
management strategies that reduce pesticide residues in the environment.

       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 were still approximately
900,000 children in the U.S. with elevated blood lead levels in the early 1990's.  Evidence from
recent  State surveys suggests that EPA and other government programs made important progress
in the mid- to late 1990's in further combating lead poisoning in children under the age of 6 years
(though updated national  estimates are still  in development).   On other fronts, exposure to
asbestos, polychlorinated biphenyls (PCBs) and some  pesticides in our buildings and in the
environment poses risks to humans as well as wildlife. Pesticides and chemicals that may act as
endocrine disrupters at ambient levels is an area of increased concern for human health and the
environment. For other common chemicals, 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 critical 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 practices, 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
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risk-management measures specified in the registration authorities under the Federal Insecticide,
Fungicide, and Rodentcide Act (FIFRA) for individual pesticide ingredients, EPA has specific
programs to foster worker and pesticide-user safety, ground-water protection, and the safe use of
pesticides and other pest control methods. 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.  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.

       Within the pesticide program,  EPA pursues  a variety of field activities at the regional,
state, Tribal and local levels, including the promotion of pesticide environmental stewardship
and  Integrated Pest Management (IPM).   States and Tribes are vital partners in our work to
implement FQPA. Newer lab equipment will assist states enforcement .of new FQPA standards.
The  voluntary partnerships and outreach programs that help farmers transition away from the
riskier products  are often catalyzed by state participation.  These programs, combined with the
availability of newer and safer pesticides, are having a real impact. In 2003 we expect at least 6
percent of acre-treatments will use applications of reduced-risk pesticides.  We are seeing a
reduction  in wildlife impacts  from pesticides as well, and in 2003 we project an additional 10
percent reduction in  reported incidents of wildlife mortalities, from the  1995 level (for a
cumulative  20  percent).   That means   fewer bird casualties, and fewer fish kills.  The
accumulation of these improvements will mean safer food, improved biodiversity, and a cleaner
environment.

       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 the  public ~  is  a  sensible and effective
approach  to sustainable development while protecting our nation's  health.  Two groups  with
significant potential to effect  environmental change are industry and academia. The Agency has
•successfully pursued a number of pollution prevention programs  with both of the these groups.
Likewise, improved understanding of the potential risks to health from airborne toxic chemicals
present indoors  will  strengthen our ability to  reduce residents' exposure through  voluntary
changes in behavior and through potential product reformulation.

       Preventing pollution through partnerships is also  central to EPA's Chemical Right-to-
Know Program (ChernRTK) which has already started 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 their potential impacts. Getting basic hazard
testing information on large volume chemicals is the focus of the "HPV  Challenge Program," a
voluntary program  challenging industry to develop chemical hazard data  that are critical to
enable EPA, State, Tribes, and the public to screen chemicals already in commerce for any risks
they may be posing.

       Children's health remains a strong focus  of the indoor environments program.   Efforts in
FY  2003 will  target reductions in  the  presence of indoor  triggers of asthma,  such as
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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.  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. EPA will continue
to work  toward bottom line results to reduce  risk and  improve indoor  air quality  through
implementation of the  Indoor Air Quality (IAQ) "Tools for Schools"  kit and schools-based
asthma education programs such as the "Open Airways" program in elementary schools. EPA
will  also continue work  in  the radon area primarily through the  State Indoor Radon  Grant
Program where EPA provides assistance to the states for the development and implementation of
programs to assess and mitigate radon to enhance the effectiveness of state and local activities
for radon risk management and reduction.

       Also central to the Agency's work under this goal in FY 2003 will be continued attention
to reducing potential risk from persistent, bioaceumulative 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.  EPA is also taking the initial steps to address the potential threat of
endocrine disrupting chemicals on the health  of humans  and wildlife. Work  focuses on
developing and  validating new chemical screens and tests to isolate those  chemicals  and
characterize the threat.

       EPA programs under this Goal have many indirect effects that significantly augment the
stream of benefits they provide.  For example,  each  year the Toxic Substances  Control  Act
(TSCA) New Chemicals program reviews and manages the potential risks from approximately
1,800 new chemicals and 40 products of biotechnology that enter the marketplace. 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.  Under the Pollution
Prevention Framework, the Agency recently started providing industry training in the use of the
same tools that EPA uses to assess new chemicals, enabling companies to make smarter choices
at earlier stages in their design process, reducing government costs, and hastening the  entry of
safer new products into the marketplace.

       The  Design  for  the Environment  (DfE),  Green  Chemistry  Program  and  Green
Engineering (GE)  build  on and expand new chemistry efforts.   They  target industry  and
academia to 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
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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.

       In several cases,  achieving  the strategic objectives  under this goal is  a  shared
responsibility with other federal, state and Tribal partners. For example, EPA's role in reducing
the levels of childrens lead exposure involves promotion of federal-state-Tribe partnerships to
decrease the number of 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 the public,  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.

       In FY 2003, EPA's waste management program will increase consumer and individual
awareness of environmental issues  by focusing on an environmental  retail theme. This  will
emphasize a  retail  outreach approach  targeted at consumers  and households.   EPA's
environmental retail theme promotes better environmental decision-making, greater interest in
the environment, and environmental stewardship on the manufacturing level.

       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 and
ecological exposures  to pesticides  and toxic  substances.   To address those data gaps,  this
research will provide a strategic framework for developing an integrated suite of tools  and
models  that will enhance EPA's procedures  for assessing the  risks to  human  health  and
ecological systems  associated with commercial chemicals,  microorganisms,  and genetically
modified organisms.
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Strategic Objectives and FY 2003 Annual Performance Goals

Reduce Public and Ecosystem Risk from Pesticides

•      Reduce by 20 percent from 1995 levels the number of incidents involving mortalities to
       terrestrial and aquatic wildlife caused by pesticides.

Reduce Risks from Lead and Other Toxic Chemicals

•      Reduce lead exposure in housing units and in the deleading of bridges and structures.

Manage New Chemical Introduction and Screen Existing Chemicals for Risk

•      Of the approx, 1,800  application new chemical  and microorganisms  submitted  by
       industry,  ensure those marketed  are safe for humans  and the  environment.  Increase
       proportion of commercial chemical that have undergone PMN review to signify they are
       properly managed and may be potential green alternative to existing chemical.

•      Provide information and analytical tools to the public for assessing the risks posed by
       toxic chemicals.

Ensure Healthier Indoor Air

•>      834,400 additional people will be living in healthier residential indoor environments.

•      1,050,000 students, faculty and  staff will experience improved indoor air quality in their
       schools.

Facilitate Prevention, Reduction and Recycling of PBTs and Toxic Chemicals

•      The quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or
       combusted for energy recovery in 2003, (normalized for changes in industrial production)
       will be reduced by 200 million pounds, or  2%, from 2002.  This data will be reported in
       2005.

•      Divert an additional 1% (for a cumulative  total of 32% or 74 million tons) of municipal
       solid waste from  land filling  and combustion, and maintain per capita generation of
       RCRA municipal solid waste at 4.5 pounds per day.

Assess Conditions in Indian Country

•      In 2003,  AIEO will evaluate non-Federal sources  of environmental data pertaining to
       conditions in Indian Country to enrich the Tribal Baseline Assessment Project.
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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 reduced risk pesticides and safer pesticide use.   Appropriate transition strategies to
reduced risk  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 reduced risk equivalents can be identified and  made  available.  In  2003, the
initiative will continue efforts to reach more farmers, and grower groups,  encourage them to
adopt safer pesticides, use environmental stewardship and integrated pest management practices,
and adopt a  "whole farm" approach to environmental protection.   Through these partnership
programs  the Agency has become more  aware of the  multiple pressures on our  nation's
agricultural industry and the interaction  of the various  environmental requirements that affect it.

       Additionally, through the Certification and Training (C&T) and Worker Protection (WP)
programs, EPA will continue  training  and educating farm workers and employers on worker
safety  practices  and the dangers of pesticides.   EPA  will continue to  protect the Nation's
ecosystems and reduce adverse impacts to  endangered species through various regulatory and
voluntary  programs, including 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 issues  of safe pesticide  use and
pesticide exposure.  These programs emphasize safeguarding workers and other pesticide  users
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, application improvements,  availability of new pesticides  and other pesticide
related issues.  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
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promote risk reduction through collaborative efforts with stakeholders to use safer alternatives to
traditional chemical methods of pest control.

               Pesticide  Environmental Stewardship Members
                     Rights of Way/Electric Util
                            20.0%
               Networking/Technology Transfer
                      14.2%
              Landscaping/Turf (includes golf courses)  /"
                        9.2%          ^" '    .
                     Government/Municipalities (includes schools)
                               10.0%
                                                               Growers/food Crops
                                                                   32.5%
    Food Processors
       4.2%

|est Control Operators
    10.0%
       Antimicrobial sterilants and disinfectants are used to kill microorganisms'on surfaces and
objects in hospitals, 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, as well as the reregistration of older antimicrobials to ensure they meet today's standards.

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 2003,  EPA will  continue
implementing its  comprehensive program to reduce the incidence of lead poisoning and elevated
blood levels in children nationwide.

       In 2003, 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,  By the end of 2003,
we expect to have provided the nation with more than 6,000 individuals  and  firms  formally
certified  in properly abating lead paint hazards. In the lead regulatory program, EPA will finalize
one major rule on training and certification for renovation and remodeling activities.  We will
also be working to finalize a major rule setting standard for deleading of buildings and structures,
which will be proposed late in 2002.

       EPA will continue to  implement the new  Lead Hazards Standards Rule  (finalized in
2001), 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
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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 2003, EPA's PCB control efforts will
encourage phase-out of PCB electrical equipment, ensuring proper waste disposal methods and
capacity, and fostering PCB site cleanups.  660,000,000 Kg of bulk PCB-contaminate waste will
be safely disposed of in 2003.  The Agency will continue assessing dioxin risks, including
identifying and quantifying the link between dioxin sources and the general population exposure,
and development of a plans to develop an dioxin strategy to respond to the latest science and
address dioxin risk management in a more comprehensive cross-media approach.

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 with industry to put information about those chemicals into the hands of the public so
they can make better and more informed consumer choices.

       EPA's Chemical Right-to-Know Initiative (ChemRTK) has already started 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). Industry response to the HPV
Challenge has  been  overwhelming:  more than 460 companies have  voluntarily committed
themselves to providing EPA with test data for 2,155 chemicals and 187 chemical categories of
the 2,800 HPV chemicals.  EPA has already commenced its review and  public posting  of these
company submissions.  By  the end of FY 2002, the Agency expects to have posted test data
covering 10% of the HPV chemicals.  EPA is  requesting additional resources for the ChemRTK
program in FY 2003 to bolster our ability to keep pace with the pending increase of industry data
submissions.  These additional resources  will make it possible  for EPA to nearly double the
amount of publicly  available  HPV chemical test data, increasing the  cumulative number of
chemical data postings from 224 chemicals in 2002 to 420 chemicals in 2003 (16% of the 2,800
HPVs).

       Under a parallel Voluntary Children's  Chemical  Evaluation  Program that  will  be
launched in 2002 (a pilot was  started in 2001), EPA and  industry  will collaborate  in fully
assessing the risks associated with chemicals to which children are exposed. With our state
partners we will work to establish a series of pilot programs to address TSCA responsibilities at
the state level, where local knowledge  of unique problems or solutions can bring greater
efficiencies to this wide ranging program.
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       An important Agency priority is to develop and use valid chemical screens and tests to
identify and characterize the risk of chemicals that may cause endocrine disruption in humans,
fish and wildlife. In 2002 EPA will put in place an Endocrine Disruptor Methods Validation
Subcommittee (EDMVS) made up of approximately 25 scientific experts representing outside
interest groups. These experts will meet during 2002 and 2003 to provide advice and counsel to
EPA on scientific issues  associated with the conduct of studies necessary for  validation of
screening and testing methods listed in the Agency's Endocrine Disruptor Screening Program.
The EDMVS will be reviewing the development of approximately 13 laboratory test methods.

Ensure Healthier Indoor Air for All

       The Agency has set a goal  of healthier indoor air for millions of students,  staff,  and
faculty.  To  meet this goal, the Agency will reduce asthma incidents and other respiratory
ailments by promoting improved indoor air quality  and indoor environment management.  By
increasing the number  of  schools where  "Tools for Schools"  indoor air quality guidelines are
adopted and implemented, healthier indoor air will be provided for millions of students, staff,
and faculty.   In FY 2003, improved air quality is anticipated  for 1,050,000 students, staff and
faculty through the voluntary Tools for Schools (TfS) program, including an  effort to obtain
commitments from five of the 50 largest school districts in the country to implement TfS.

       In FY 2003, the Agency expects 848,000 Americans to be living in healthier residential
indoor environments.   Part of meeting this goal includes the expansion  of EPA's successful
community-based educational partnerships addressing sound indoor environmental  management.
In FY  2003,  the Agency expects to utilize these partnerships to educate  136,000 people with
asthma and their caregivers about improved indoor air quality techniques.  Additionally, EPA
will focus on indoor environment issues related to older Americans' health by assessing the links
between environmental exposure and older  Americans' health and  developing  activities to
address those links.  The Agency will also develop pilot programs with community  organizations
serving older populations in  order to  gather information and  address and educate  older
Americans about indoor environmental issues.

Facilitate Prevention, Reduction and Recycling of PBT's and Toxic Chemicals

       Pollution  prevention  and  waste  minimization require a  comprehensive  effort  of
minimizing the quantity  and toxicity 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.
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       In FY 2003, EPA  is requesting additional resources  to launch a bold new Advancing
Environmental Stewardship in America's Communities Initiative. The Agency will be working
hand-in-hand with States  to  challenge and  assist  American industry in achieving important
national environmental goals through new innovations in product and service design, production,
and delivery.

       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.

       In this objective, EPA provides the  national leadership so important to reducing the
generation of municipal and  industrial solid waste  regulated under RCRA Subtitle D and to
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  promotes financial  and technological  opportunities for  recycling/reuse
businesses. In FY 2003, 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. EPA will kick off an environmental retail initiative  that encourages
consumers and individuals to think about environmental issues at the "point of purchase."

       In the hazardous waste arena, regulated under RCRA Subtitle C, the Agency's focus is on
reducing the presence of priority chemicals in  hazardous waste by 50 percent  by FY 2005
(compared to a  1991 baseline). This  goal is consistent with  other national  and international toxic
chemical reduction efforts. In FY 2003 the Agency will encourage an.d support implementation
at the Regional, state and local levels through voluntary'pollution prevention partnerships that
not only make  economic sense but  must also  decrease human and environmental exposure to
toxic wastes. By FY 2003, EPA plans to initiate partnerships with companies willing to make
specific  commitments to  reducing  hazardous waste as part of the Agency-wide Voluntary
Chemical Reductions program.

       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 innovations. EPA will place particular emphasis on  ways to increase safe
hazardous waste  recycling while reducing  the burden  for  small  businesses  concerned with
printing, electronics recycling, and metal finishing.

       The  Green Chemistry Challenge Program continues to be an effective  catalyst for 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  2003,  the Green Chemistry Program will  be focusing  its
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outreach, awards, and research efforts to target: 1) audiences not currently involved in green
chemistry product and process design; and, 2) specific high priority chemicals, products, and/or
processes for which safer alternatives are not available.

       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. By the beginning of FY 2003, the Agency plans to be well into the implementation
of its Mercury National Action Plan, focusing on seven key priority areas.  Critical measurement
and  monitoring efforts will be in  their  third year, facilities will be collecting PBT chemical
release data under the new TRI rule, and submissions under TSCA for approval of new PBT
chemicals for entry into commerce will be under close scrutiny.

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 strive to complete a
documented baseline assessment of environmental conditions for Tribes. 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 2003, EPA is  requesting a total of $57.5  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
stewards 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 on how EPA and Indian Tribes might
work in concert to protect public health  and the environment in  Indian country. As part of that
effort, EPA is  proposing to continue  authority granted in  FY 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.

Research

       In FY 2003, health effects research under this goal 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 the Toxic
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Substances  Control Act  (TSCA),  which addresses  the  introduction of new chemicals  into
commerce.  Research will address the need for methods to evaluate effects associated with a
variety of exposure conditions and the special sensitivities of certain subpopulations (including
children)  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.  EPA will  continue to participate in the Agriculture Health Study  (AHS).
The primary objective of the EPA exposure study is to collect high quality exposure data that can
be  used to evaluate how accurately the  AHS questionnaire classifies  pesticide application
activities and enables the prediction of applicator exposure and dose.

       Also,  EPA proposes  in  FY  2003  to begin a  major research  effort  focused  on
biotechnology. Areas of research will include: 1) potential allergenicity of proteins introduced
into the  food supply by biotechnology; 2) potential adverse ecological effects on non-target
species or as  a result of  unintended gene transfer;  and 3) potential  development of pesticide
resistance in the target  species. This research will result  in improved capability to assess the
risks of allergenicity from genetically altered food, improved capability to assess the ecological
risks associated with genetically modified organisms, and tools to manage gene transfer and
resistance.

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
                                          IV-13

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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 funds
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.)

       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 projects that affect Indian Tribes.
                                         IV-14

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

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

Objective: 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 Risk from
Pesticides
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY2001
Actuals
$54,262.3
$40,250:6
$830.7
$13,181.0
227.0
FY 2002
Enacted
$56,026.3
$42,020.1
$920.7
$13,085.5
241.9
FY 2003
Request
$55,409.8
$41,358.0
$966.3
$13,085.5
239.1
FY 2003 Req.
v. FY 2002 Ena.
($616.5)
($662.1)
$45.6
$0.0
-2.8
                                    Key Program
                                (Dollars in Thousands)

Administrative Services
Congressionally Mandated Projects
Endocrine Disrupter Screening Program
Facilities Infrastructure and Operations
Homeland Security
. Legal Services
Management Services and Stewardship
Partnerships to Reduce High Risk Pesticide
Use
Pesticide Registration
Pesticide Reregistration
Pesticides Program Implementation Grant
Regional Management
Safe Pesticide Applications

FY 2001
Enacted
$222.1
$598.6
$757.5
$0.0
$0.6"
$261.9
$351.8
$11,851.9
$12,072.3
$2,767.0
$13,085.5
$18.2
$10,135.4

FY 2002
Enacted
$0.0
$1,700.0
$750.5
$3,350.0
$482.4
$308.2
$382.5
$10,407.0
$10,609.7
$3,793.3
$13,085.5
$0.0
$11,157.2

FY2003
Request
$0.0
$0.0
$768.9
$3,423.3
$0.0
$328.6
$384.1
$12,279.8
$11,016.6
$3,907.2
$13,085.5
$21.9
$10,193.9

FY 2003 Req.
v. FY 2002 Ena.
$0.0
($1,700.0)
$18.4
$73.3
($482.4)
$20.4
$1.6
$1,872.8
$406.9
$113.9
$0.0
$21.9
($963.3)

                                        IV-15

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FY 2003 Request

       EPA will  continue to assist farmers in transitioning to reduced risk pesticides and pest
management practices as the Agency continues to implement the Food Quality Protection Act
(FQPA) and restricts or removes older, riskier pesticides from the market.  In FY 2003, EPA will
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 pursue an
integrated  approach to  pollution  prevention.  EPA  will continue its  commitment under this
objective  to protect agricultural workers, to  certify  and train pesticide applicators,  to protect
endangered species, non-target species such as benign insects, fish and .wildlife, 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  2003,  through the Certification  and  Training Program (C&T) and  the  Worker
Protection Program (WP), EPA will continue its partnership with states and Tribes in educating
workers,  farmers  and
employers on the safe
use of pesticides  and
worker   safety.   The
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
applying pesticides through  training  and certification (and recertification every three 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 to prevent
household and other pesticide misuse, EPA  will focus its efforts in rural and urban areas with
poor communities where  there are disproportionate  public health risks to residents, especially
children.

      • EPA  will employ product stewardship with manufacturers  and distributors, and  work
with states to  improve  their certification and training programs.  EPA continues to improve

- Certification &
 training of
 Pesticide- Applicators
Worker Protection Standard
       Pesticides 4-
Matitmdl Strategies for
 Health Care Providers
            IV-16

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consumer product labels,  communicate  proper handling of  pesticide  containers  and their
distribution, and direct enforcement activities to prevent improper sales and Use of agricultural
pesticides.  EPA continues  to be concerned with the use of certain pesticides that are likely to
show up in  ground-water.  The Agency is pursuing options to assess and manage pesticide use
and  contamination potential  of those pesticides.   The Ground-Water Strategy  and  the
development of pesticide management plans provide an ongoing means of preventing pesticide
contamination of our ground-water resources.

       Regions will 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
compliance
for  other
operations
the state.
       and
 assistance
agricultural
 throughout
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       In FY 2003, 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).  EPA will continue to
support the development and evaluation of new pest management technologies.
                                         IV-17

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       The     Pesticide
Environmental
Stewardship    Program
(PESP)and EPA's  IPM
activities   are   closely
related in their efforts to
promote  risk  reduction
through  increasing  the
use of safer  alternatives
to  traditional  chemical
methods  of pest control.
PESP, through voluntary
partnerships        with
pesticide users, seeks to
reduce both  health  and
environmental      risks
while      incorporating
pollution     prevention
strategies.  Partners and
supporters of PESP play
vital roles in developing
common          sense
approaches  to  pesticide
risk reduction,  including
use  of  integrated  pest
management      (IPM),
biological  and cultural
controls,  and  weather
and pest data decision
models.           PESP
supporters    have    an
interest in risk reduction
because     they     use
agricultural  products or
represent groups affected
by   pesticides.    This
program began 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 will  continue to
coordinate with USDA in  encouraging and supporting IPM practices,  fostering the managed use
of an array of pest control methods (biological, cultural, mechanical, and chemical) that achieve
the best results  with the least adverse impact to the environment.

       The Endangered Species Protection Program (ESPP), started in 19&8, 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. Under the Act, EPA must

                                          IV-18
  Promoting Use of Integrated Pest Management In Schools

One of EPA's highest priorities is protecting children's health
from unnecessary exposure to pesticides that are used in their
schools to control pests. EPA is encouraging school officials to
adopt Integrated Pest Management (IPM) practices to reduce
children's exposure to pesticides while maintaining effective
control of pests.  -

A goal of the IPM in Schools Initiative is to efficiently integrate
an IPM program with the school's existing pest management plan
and other school management activities. School management
activities such as preventive maintenance, janitorial practices,
landscaping, occupant education, and staff training are all part of
an IPM program.  The following steps are required to develop an
IPM decision network:

1. Developing an official policy statement for school pest
management
2. Designating pest management roles
3. Setting pest management objective for  sites
4. Inspecting, identifying and monitoring  for incipient pest
populations
5. Setting action thresholds
6. Applying IPM strategies
7. Evaluating results and record keeping

EPA is helping schools understand and implement IPM through
the distribution of printed publications, awarding grants to start
IPM programs, offering workshops and courses and providing
guidance and assistance through partnerships with universities
and national associations.

-------
ensure that use of pesticides  will not result  in  harm  to  species  listed  as  endangered  and
threatened, or harm habitat critical to those species' survival.  To implement the ESPP, labels of
certain pesticides direct users to bulletins with information on how  to protect endangered  and
threatened species from harm when using pesticides.

       In order to protect listed species from harm resulting from pesticide use, the Agency  will
continue to do the following:

•      Use sound science to assess the risk of pesticide exposure to listed species.

•      Implement  use limitations by  adding  a  generic label statement; developing  county
       bulletins containing maps of species' locations and pesticide use limitations; distributing
       the  bulletins and other materials; 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 and  Tribes  to  develop  their  own  endangered  species
       protection plans to meet the program's goals.

       Antimicrobial  pesticides 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 basic standards, the foremost being:

»      The  product will  not  cause  unreasonable adverse  effects  to human  health  or  the
       environment.

•      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.

       The  Agency will continue  to address concerns regarding the efficacy of public health
products used to kill microorganisms in hospitals,  schools, restaurants,  and  homes. 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. In keeping with a  major component of the  strategy, EPA
has greatly improved communications with the  public, all levels of government, academia, user
communities, industry, health professionals, trade organizations, and independent testing  groups.
Additionally, the Agency has enhanced and expanded its use of the Internet to educate the
general public about the status and direction of the regulation for antimicrobial products.

       The strategy also seeks to improve  the regulation of antimicrobials through improvement
of EPA's regulatory processes.  EPA has  committed resources to ensure that efficacy tests for

                                          IV-19

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antimicrobial products are reliable and reproducible and that internal controls are improved to
ensure the integrity  of data  submitted  by registrants.  Further, the Agency is developing a
complaint system to handle concerns regarding ineffective products.

       Reducing the  risks of pesticide exposure is a particular challenge on Tribal lands. Native
Americans often consume different foods than the average American, eating more wild game and
fish following traditional subsistence diets, and using different farming practices.  Their patterns
of exposure may not be adequately represented in the general public dietary or other exposure
information gathered by USDA, FDA or the registrant.  Outreach and education tools must be
matched to Tribal needs.

       In 2003, the program  will have completed a review of Tribal needs through a series of
focus groups.  In addition, 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  pesticides  as  well  as  Persistent
       Bioaccumulative Toxics  (PBTs), lead and other toxic substances

       Regional programs are also expanding  work to address Homeland Security concerns in
FY  2002.   Activities   include  expanded  outreach to  chemical  and  pesticide  producers,
distributors, and users; an additional field presence to monitor imports under FIFRA and TSCA;
and coordination with partners to address security issues surrounding private pesticide applicator
certification.

FY 2003 Explanation of Change from FY 2002 President's Budget

EPM

•      (+$300,000)  This increase reflects restoration of base contract dollars to  Pesticides
       Certification and Training program. Funds were reprogrammed in 2002 to make up for
       the  fee  revenue  shortfall  in the  salary  account  for tolerance reassessment and
       rereregistration staff.

•      (+$550,000)  This increase reflects restoration of base contract dollars to the registration
       program's  analysis  work to ensure newly  registered pesticides  are safe  for  the
       environment.  Funds were reprogrammed in 2002 to make up for the fee revenue shortfall
       in the salary account for  expedited registrations.
                                          IV-20

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        (+$110,000) This increase reflects restoration of base contract dollars to the groundwater
        implementation program.  Funds were  reprogrammed in 2002  to make up  for the  fee
        revenue shortfall in the salary account for tolerance reassessments and reregistration staff.

        (+$310,000) This increase reflects restoration of base contract dollars  to  the  Worker
        Protection program.  Funds were  reprogrammed in 2002 to  make up for the fee revenue
        shortfall in the salary account for tolerance reassessments and reregistration staff.

        (-$107,000) This  decrease  reflects the  change  in funding  source  for the  tolerance
        reassessment program from appropriated dollars in FY 2002 to fee revenue from the new
        tolerance processing fee.

        (-$482,000, -2.0 FTE)  This decrease reflects  completion of first phase of outreach to
        states and agricultural community to address security issues surrounding pesticide use,
        application and production.

        (- $600,000) This decrease  reflects non-continuation  of Congressional  adds  in the  FY
        2002 appropriation.
Annual Performance Goals and Measures

Agriculture Partnership

In 2003      Focus partnership development that indicates a successful transition on minor use commodity groups which use high risk
            pesticides (organoposphates, carbamates and B2 carcinogens).

In 2003      With USDA, universities, state lead agencies, and other stakeholders, promote the research and adoption of reduced risk pest
            management strategies (pilot APG).

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      EPA began implementation of 12 model agricultural pilot projects.                 '     .  .

Performance Measures:                                  FY2001          FY2002          FY.2003
                                                    Actual            Enacted          Request
Model agricultural partnership pilot projects                           12       10-15 Addit.                      Pilots

Successful transitions from high risk pesticides to effective                                               20-30     Transitions
alternative pest management practices

Collaboration/outreach efforts                                                                      40     Efforts
Baseline:     Under development


Pesticides in Groundwater

In 2003      Pesticides with high leaching and persistence potential managed to protect groundwater resources from contamination.

In 2002      Pesticides with high leaching and persistence potential will be managed through significant actions to protect groundvyater
            resources from contamination.

Performance Measures:                                  FY2001          FY 2002          FY 2003
                                                    Actual          Enacted          Request
Pesticides with high leaching and persistence potential                    .                 22               25     Pest. (Cum)
managed to protect groundwater
                                                  IV-21

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Baseline:      Thirty-one pesticides have been identified as of March 2000. Baseline revised in FY02 to administrative measure that tracks
            regulatory decisions that reduce impact of high leaching and persistent pesticides on the environment because of concerns about
            NAWQA data; i.e., it may not be replicating survey due to funding and survey design which may use different survey sites from
            year to year. New PM targets will be established in FYQ2.


Reduce Risk to Endangered Species

In 2003       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.

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.

Performance Measures:                                FY2001          FY.2002          FY2003
                                                  Actual           Enacted          Request
Species on priority list jeopardized                                                 0              0     Species



Baseline:      Top 15 species on OPP/FWS/USDA list for the year.


Reduce Wildlife Incidents and Mortalities

In 2003       Reduce by 20 percent from 1995 levels the number of incidents involving mortalities to terrestrial and aquatic wildlife caused by
            pesticides.

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 mortality to such wildlife.

Performance Measures:                                FY2001          FY 2002          FY2003
                                                  Actual           Enacted          Request
Reported incidents involving mortalities to birds and fish                                10%            20%     Reduction



Baseline:      80 reported bird incidents (involving 1150 estimated bird casualties); 65 reported fish incidents (involving 632,000 estimated
            fish casualties)


Verification and Validation of Performance Measure


Congressional Performance Measure:  Reduce by 20 percent from 1995 levels the number
of incidents involving mortalities to terrestrial  and aquatic wildlife caused by pesticides.


Performance Database:  The Ecological Incident Information System (EIIS) is a national
database of information on poisoning incidents of nontarget plants and animals caused by

pesticide use.  This database is maintained by the  Environmental Fate and Effects Division of the

Office of Pesticide Programs.
Data Source: Data are extracted from written reports offish and wildlife incidents submitted to

the Agency by pesticide registrants under Federal Insecticide Fungicide and Rodenticide Act
(FIFRA), Section 6(a)(2), as well as incident reports voluntarily submitted by  state and federal

agencies involved in investigating such incidents.


QA/QC Procedures:  There is a process to ensure data quality for this measure.  Before entering

an incident, a database program is used to screen for records  already in the database with similar

locations and dates. Similar records are then individually reviewed to prevent duplicate
reporting.  After each record is entered into  the EIIS database, an incident report is printed that
contains all the data entered into the database.  A  staff member, other than the one who entered

the data, then reviews the information in the report and compares it to the original source  report
                                                IV-22

-------
to verify data quality.  Scientists using the incident database are also encouraged to report any
inaccuracies they find in the database for correction.

Data Quality Reviews: Internally and externally conducted data quality reviews related to data
entry are ongoing.  When resources allow incorporation of wildlife data from private
organizations, such as the American Bird Conservancy, the new data and EIIS data are reviewed
in concert for quality during data entry.

Data Limitations: This measure is designed to monitor trends in the numbers of acute poisoning
events reported to the Agency. Because the data are obtained, in part, through voluntary
reporting, the numbers of reported incidents may not accurately reflect the numbers of actual
incidents.  Therefore, it is important to consider the possible factors influencing changes in
incident reporting rates over time when evaluating this measure.

New/Improved Data or Systems:  The Office of Pesticide Programs is currently conducting a
project with the American Bird Conservancy, reviewing the data in its Avian Incident
Monitoring System on bird kill incidents caused by pesticides.  These data will be incorporated
into the EIIS. The project should improve the quantity and quality of data in the EIIS database
on avian incidents,

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 in 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

                                          IV-23

-------
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 Insecticide, Fungicide and Rodenticide Act (FIFRA)

Federal Food, Drug and Cosmetic Act (FFDCA)

Food Quality Protection Act (FQPA) of 1996

Clean Water Act
                                         IV-24

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

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

Objective: Reduce Risks from Lead and Other Toxic Chemicals

      By 2007, significantly reduce the incidence of childhood lead poisoning and reduce risks
associated with polychlorinated biphenyls (PCBs), mercury, dioxin, and other toxic chemicals of
national concern.

                                 Resource Summary
                                (Dollars in Thousands)


Reduce Risks from Lead and Other Toxic
Chemicals
Environmental Program & Management
State and Tribal Assistance Grants
Total Workyears



Administrative Services
Congressionally Mandated Projects
Facilities Infrastructure and Operations
Grants to States for Lead Risk Reduction
Homeland Security
Lead Risk Reduction Program
Legal Services
Management Services and Stewardship
National Program chemicals: PCBs, Asbestos.
FY 2001 FY 2002
Actuals Enacted
$33,927.9 $36,423.5
$20,130.6 $22,741.5
$13,797.3 $13,682.0
139.3 144.2
Key Program
(Dollars in Thousands)
FY 2001 FY 2002
Enacted Enacted
$96.8 $0.0
$130.7 $380.0
$0.0 $1,940.1
$13,682.0 $13,682.0
$0.0 $150.0
$14,214.3 $13,092.6
$188.8 $220.4
$58.6 $182.9
$6,103.8 $6,775.5
FY 2003
Request
$36,355.9
$22,673.9
$13,682.0
.144.7

FY 2003
Request
$0.0
$0.0
$2,076.6
$13,682.0
$0.0
$13,166.3
$238.9
$197.6
$6,994.5
FY 2003 Req.
v. FY 2002 Ena.
($67.6)
($67.6)
$0.0
' 0.5

FY 2003 Req.
v. FY 2002 Ena.
$0.0
($380.0)
$136.5
$0.0
($150.0)
$73.7
$18.5
$14.7
$219.0
Fibers.and Dioxin
                                       IV-25

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FY 2003 Request

Lead Risk Reduction Program

       EPA is working  closely  with other Federal Agencies  to eliminate  childhood lead
poisoning.  EPA establishes many of the standards for lead abatement and hazard levels that
guide state, private and federal activities.  HUD grants speed the abatement process  in older
housing. EPA and the states and tribes ensure there are enough trained, certified professionals to
do this potentially hazardous work. Local health departments also have a key role in identifying
priorities for abatement based on health impacts to children.  During 2003, 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
work  towards finalizing one  major  rule  setting  standards for training and certification for
renovation and remodeling activities,  and work towards proposing a rule regarding the deleading
of  bridges  and other structures.   EPA's FY  2003  lead activities will make significant
contributions to virtually eliminating lead poisoning for our nation's children.

       The concentration of lead in a  child's blood is typically used as an index of lead exposure.
Over the past  decade, there has been concern about blood-lead levels once thought to be safe.
Since 1975, the Centers for Disease Control and Prevention (CDC) has lowered the blood-lead
level considered elevated for children from 40 ug/dl (micrograms per deciliter) to 10 ug/dl (the
evidence of health effects below 10 ug/dl is not sufficiently strong to warrant concern).

       According to HUD's National Survey of Lead and Allergens in Housing, an estimated 38
million homes (40percent 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
five million (or 14 percent) of these homes with some lead-based paint have children under age
six in residence.  Subchapter IV of TSCA (the 1992 Residential Lead-Based Paint Hazard
Reduction Act) focuses on children younger than six years.

       Small children like to put things in their mouths.  Ingestion of lead-contaminated dust and
soil through normal hand-to-mouth activity is the primary pathway  of lead exposure to U.S.
children under six years of age. Lead can contaminate dust when lead-based paint deteriorates,
or when lead-based paint is disturbed in the course of-renovation, repair, or abatement activity.
Soil contaminated with lead from  deterioration of exterior lead-based paint, industrial emissions,
or 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 on a number of different fronts 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
                                         IV-26

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Safety Commission (CPSC) banning the production and sale of lead-based paint for residential
use in 1978.  In addition, EPA has implemented more 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.

       Data from the National Health and Nutrition Examination Survey (NHANES) conducted
by the National Center for Health Statistics indicate that from 1976-1980 to 1999 the geometric
mean blood lead level for children aged 1-5 years decreased from 15.0 micrograms per deciliter
(ug/dL) to  2.0  ug/dL.  According  to NHANES III Phase 2, conducted from  1991 to 1994,
approximately 900,000 children aged 1-5 years had blood lead levels equal to or exceeding 10
ug/dL, the level of concern for  children established in 1991 by the Centers for Disease Control
and Prevention (CDC).  More recent NHANES estimates of the number of children with blood
lead levels at or above  10 ug/dL  are not available.  However,  data reported to CDC  from
nineteen state surveillance programs show that the proportion of tested children under age 6 with
blood lead levels at or above 10  ug/dL decreased from 1996 to 1998.

       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.

       EPA, under  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.
                                          IV-27

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Grants to States for Lead Risk Reduction

      EPA  has  approved  those  states,
territories and  Tribes  that  intend  to  run
programs    for     lead    accreditation
certification,  and workplace standards in
targeted  housing.    Although  all  states,
territories and  Tribes  will  not  adopt the
program, we intend to encourage  several
more to  do  so.  However,  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,
certification and accreditation program  by
states, territories or tribes, or in some cases
by  EPA,  additional  data  is  becoming
available  to help  measure progress  in
reducing childhood lead  poisoning  and
elevated  blood-lead levels.  In the future,
EPA  is  working to be  able to measure
progress  in  reducing  lead-based  paint
exposures through  the  collection of data
associated   with   the   Lead  Abatement
Program  and has developed pilot measures
projects to  test  their viability. 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
           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 2001
dioxin inventory, results of the 2002 NDAMNS
cycle, and results from round 1 of EPA/USD A
animal feed studies.  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-28

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agreements. In  2003, EPA's PCB control efforts will continue encouraging phase out of PCB
electrical equipment, ensuring proper  storage or waste disposal methods  and capacity, and
fostering PCB site cleanups. These activities are reflected in  our Annual Performance Goals
which measure disposal trends since 1990. 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.  In 2002 EPA is  coordinating with the
states to develop a strategy for addressing mercury. Approximately  10 percent of women in the
U.S. have mercury levels in their blood within one-tenth of potentially hazardous levels.  This
indicates a very narrow margin of safety, especially since mercury  is one of the materials that
accumulate in the system. Other efforts will focus on outreach and technical assistance in the
asbestos  program  for  schools,  in coordination with the Occupational  Safety  and Health
Administration and the states, as needed.  A new project to determine the risks  to homeowners
and remodelers from asbestos-contaminated vermiculate home insulation is underway and should
be completed in 2002.

      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.

FY2003 Explanation of Change from the FY2002 President's Budget

EPM

•     (-$170,000) This decrease to the Lead program's outreach activities reflect a hold on the
      award of certain public outreach grants while the program is undergoing evaluation and
      competitive sourcing is implemented. Regulatory  support is  also decreased to reflect
      progress toward completion of the regulatory requirements for the lead program.

•     (-$150,000)  This decrease reflects completion of first  phase  of outreach to  states and
      industry regarding chemicals of potential concern for terrorists threats.

•     (-$350,000) This  decrease reflects  non-continuation of Congressional Adds from the FY
      2002 appropriation.
                                         IV-29

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Annual Performance Goals and Measures

Lead Regulatory Standards

In 2001        EPA finalized a rule that establishes standards regarding hazardous levels of lead in paint, dust and soil.

Performance Measures:

Lead Hazard Standards Rule - develop final
FY.2001
 Actual
       1 final
FY 2002
Enacted
FY2003
Request
                                      Rule
Baseline:

Safe PCB Disposal

In 2003        Promote safe disposal of PCB-contaminated equipment and waste.

In 2002        Promote Safe disposal of PCB contaminated equipment onad waste.

In 2001        Capacitor, Transformer and Bulk Waste data reported by industry on a calendar year basis and not available until September
               2002.
The Transfomer Rectassicifcation Rule was published on April 2, 2001.

Performance Measures:


Safe Disposal of Transformers

Safe Disposal of Capacitors

Safe Disposal of Bulk Waste

Develop Final Transformer Reclassification Rule
FY2001
Actual
Avail. 9/1/02
Avail. 9/1/02
Avail. 9/1/02

FY2002
Enacted
10000
22000
660,000,000

FY 2003
Request
10000
25000
660,000,000



Transformers
Capacitors
Kg Bulk Waste
Rule
Baseline:       Baseline for Capacitors:  1.85 million units; Transformers 2.20 million units; baseline for bulk waste disposal is based on annual
           '    disposal of PCB bulk waste from 1990-1995.
Lead Certification and Training of Lead Abatement

In 2003        Reduce lead exposure in housing units and in the deleading of bridges and structures.

In 2002        Implement certification and training of lead abatement professionals.

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        EPA did not finish this rule.

In 2001        More than 2,000 individuals were certified as lead abatement professionals. This number was estimated from the monthly
               average of incoming Certification Applications. An improved tracking mechanism is being negotiated with a.contractor for
               future years.
Performance Measures:
Evaluate results from pilot test of indicators and modify for
implementation nationwide.

Building and Superstructure Rule

Certified individuals only in states with federally administered
program

Certified nationally (federally-administered and state-
administered program)'
   FY2001
    Actual
         >2,000
    FY2002
    Enacted
                   In development
                                4000
    FY 2003
     Request
                           1 Proposed
                                 5000
                       Analysis


                       Rule

                       Certified

                       Certified
                                                             IV-30

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Performance Measures:                                FY2001          FY2002         FY2003
                                                Actual          Enacted         Request
Number of Abatements             ,                                                   pilot (TBD)     Notifications
Pilot Regional effort to monitor reduction in lead exposures                                               3     Regions
Renovation and Remodeling Rule                           incomplete     in development        1 Proposed     Rule
Administer data collection grants to Tribes to determine Tribal                                             15     Grants
lead exposure

Baseline:     Baseline will be established in 2001.  (Note: 2003 goal of 5000 assumed that both EPA and state certifications would be
           counted. We have been unable to confirm when/if we will get state data, so are now limiting this to EPA data.) Rule
           development was initiated in 1998; no consistent standard for abating lead paint for renovation or buildings/superstructures
           existed prior to Title X.

Verification and Validation of Performance Measures

Performance Measure:  Number of certified individuals nationally

Performance Database: Regional Office records.

Data Source:  Currently, all information is  received through informal reporting from Regional
offices, and originates from information submitted via certification applications.  In the future,
we will track certifications centrally.

QA/QC  Procedures: Applicants  are  given  photo   identifications  to  prevent  cheating  at
certification testing centers. EPA Headquarters reviews applications for completeness, including
checking for the required information and materials.  Regions 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 of records maintained at the  test  centers are
conducted during routine compliance monitoring of the centers using Office of Enforcement and
Compliance Assurance procedures.  The  reviews have found occasional  discrepancies but no
regional or national trends have  come to light  requiring systemic modifications to any record-
keeping or QA/QC procedures.

Data Limitations:  We have certification data from nine out of ten EPA regional offices.  We
expect that the remaining regional office would add no more than 300 certified entities to the
baseline count. If an individual or firm  was certified in more than one EPA Region, they have
been double-counted.  We expect that these difficulties will be resolved once we have in place a
centralized database.

New/Improved  Data or Systems:   We hope to have a  centralized, contractor-run tracking
system in place by 2003.
                                            IV-31

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Coordination with Other Agencies

       The success of EPA's lead program depends on effective coordination with other Federal
agencies, states and Indian Tribes.  In 2002-2003, EPA plans to propose a rale for lead-based
paint renovation and remodeling (R & R) activities. EPA will coordinate with HUD to clarify
how these new rales may affect existing EPA and HUD regulatory programs, and with the
Federal Highway Administration of DOT and with OSHA of DOL on worker protection issues.
Both the R &  R Rule and the Buildings and Structure  Rule could result in worker protection
requirements for personnel from State and local governments. Currently these workers are not
subject to OSHA construction requirements.  EPA will continue to 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 professionals is administered effectively;
and 3) the States and Tribes adopt the R & R and the Buildings and Structures Rule when these
rales become effective.

       EPA has a Memorandum of Understanding (MOU) with HUD on coordination of efforts
on Lead-based paint issues.  As a result of the MOU, EPA and HUD co-chair an Interagency
Task Force that has been regularly meeting since 1989.  There are  14 other Federal agencies
including CDC and DOD on the Task Force.

       EPA, HUD and the National Institutes of Standards and Technology have recently been
working to identify reliable at-home test kits for lead based paint to recommend to do-it-yourself
renovators.   HUD and EPA also have a joint Lead  Hotline and  share enforcement of the
Disclosure Rule.

       Mitigation of existing risk is  a common interest for other federal agencies addressing
issues  of asbestos and PCBs.    EPA will  continue to coordinate  interagency strategies for
assessing and managing potential risks from asbestos and other fibers. Coordination on the safe
PCB disposal  is an area of ongoing emphasis with the Department of Defense (DoD), and
particularly with the US  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 and DOD as they develop alternatives and explore better technologies for
storing and disposing high-risk chemicals.

Statutory Authorities

Toxic Substances Control Act (TSCA) section 4 , 5, 6, 8, 12(b) and 13 (15 U.S.C. 2603-5, 2607,
261 land 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, 136i,  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 2003 Annual Performance Plan and Congressional Justification

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

Objective: 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)
'
Manage New Chemical Introduction and
Screen Existing Chemicals for Risk
CREDIT SUBSIDY RE-ESTIMATE
Environmental Program & Management
Science & Technology
Total Workyears
FY2001
Actuals
$69,315.0
$3.580.0
$45,428.6
$20,306.4
379.6
FY 2002
Enacted
$75,337.8
$0.0
$53,190-7
$22,147.1
400.3
FY 2003
Request
$77,538.2
$0.0
$52,388.6
$25,149.6
391.2
FY 2003 Req.
v. FY 2002 Ena.
$2,200.4
$0.0
($802.1)
$3,002.5
-9.1
                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Community Assistance
Congressionally Mandated Projects
Endocrine Disrupter Screening Program
Environmental Monitoring and Assessment
Program, EMAP
Existing Chemical Data, Screening, Testing
and Management
. Facilities Infrastructure and Operations
Homeland Security
Legal Services
Management Services and Stewardship
New Chemical Review
Research to Support Safe Communities
Science Coordination and Policy
FY 2001
Enacted
$233.8
$556'.5
$486.5
$3,634.1
$143.0
$24,522.4
$1,270.3
$0.0
$803.3
$1,004.2
$12.620.2
$20,093.7
$0.0
FY 2002
Enacted
$0.0
$474.4
$487.5
$2,952.8
$66.0
$28,286.4
$5,983.8
$1,102.2
$912.3
$824.5
$12,477.2
$21.593,6
$177.1
FY 2003
Request
$0.0
$507.1
$0.0
$2.934.2
$0.0
$28,331.9
$5,600.5
$0.0
$979.6
$725.8
$13,123.8
$25.149.6
• $185.7
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$32.7
($487.5)
($18.6)
($66.0)
$45.5
($383.3)
($1,102-2)
$67.3
($98.7)
$646.6
$3.556.0
$8.6
                                       IV-33

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FY 2003 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
•      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   2003  is  the
Chemical           Right-to-Know
(ChemRTK)    Program,    which
focuses on  addressing the lack of
critical    human    health    and
environmental  effects  information
on industrial chemicals.  Currently
there  is little information available
on  the  potential  hazards of most
chemicals used in everyday products
and industrial processes.

       ChemRTK's           High
Production Volume  (HPV) Program
targets    the   2,800    chemicals
produced  in the highest  volumes (one million  pounds or greater) in the U.S.   Working in
partnership with  industry, the Agency will ensure  that basic screening-level  data on  these
chemicals are made  publicly available by 2005. ChemRTK will help prioritize EPA's chemical
risk assessment and  management activities and increase the amount of information on chemical
exposures 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 that may  be posed by  these chemicals.

       Industry response to  the HPV Challenge has been overwhelming; more  than 460
companies have voluntarily committed themselves to providing EPA with test data for  2,155
chemicals and  187  chemical categories  of the 2,800  HPV  chemicals.   EPA  has  already
commenced its review and public posting of these company submissions.  By the end of FY
2002, the  Agency expects to have posted  test data covering  10 percent of the HPV chemicals.
The program received additional funds in 2002 through a Congressional Directive, which is
enabling faster progress.   EPA is requesting a $2 million increase in base funding for ChemRTK
in FY 2003 to maintain the higher pace and. create a better match with the pending industry data
                                         IV-34

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submissions. These additional resources will make it possible for EPA to make 60 percent more
data publically available for HPV chemicals, increasing the cumulative number of chemical data
postings from 280 chemicals in 2002 to 448 chemicals in 2003 (16 percent of the 2,800 HPV's).

       In FY 2002 and 2003, EPA will continue its work under the Acute  Exposure Guidelines
program to  develop and provide key information for assisting communities in identifying and
assessing the risks  associated with  extremely hazardous  substances in communities and
workplaces  at the local  level. The purpose of this  work is  to develop scientifically credible,
nationally uniform, short-term exposure limits for a wide range of acutely  toxic substances that
are protective of the general public, including children, infants, the infirm, and the elderly. At
present, substantial information on chronic exposure to ambient levels  of industrial chemicals
available to  assist communities. However, information on the risks to human health from short-
term exposure to acutely toxic chemicals is seriously lacking.  This information is critical in
assisting local  communities  in the assessment of  risks from  chemical accidents,  chemical
terrorism, remediation of superfund sites, and current programs on the destruction of chemical
warfare agents.

       This project compliments the HPV program by extending the information of that program
beyond the  identification of acutely toxic substances and the availability  of published toxicity
data.  This  program uses  sound science to interpret the  acute toxicity data and  provide
meaningful  and useful  information on the risks,  hazards,  and safe  levels of acutely  toxic
chemicals. The goal of the program, which commenced in FY 2001, is to provide 15 guidelines
for each of approximately 400 acutely toxic chemicals over eight to ten years.   In 2001, 75
guidelines were developed for five chemicals; 22 chemicals are targeted for  2002, and  30 in
2003. Increased FY 2002 ant-terrorism funding will enable the development of guidelines for 11
additional chemicals,  bringing the FY 2002 targets to 495  guidelines  for 33 chemicals. The
information will  be  disseminated through the 50  State Emergency Response Commissions
(SERCs) to  more than 3500 Local Emergency Planning Committees (LEPCs) established under
•SARA Title III. The  project also  will assist communities in chemical emergency prevention
under  CAAA  112(r)  by  enabling  scientifically  credible  risk  assessments  of operations
procedures,  engineering, design, and construction of local chemical facilities.

       This project represents  a first-of-a-kind collaborative effort involving  scientists and
clinicians from both the public and private sectors. It involves the most comprehensive and cost
effective data gathering, data assessment, peer review process ever assembled for purposes of
establishing exposure limits for hazardous chemicals.  This effort is conducted by a Federal
Advisory Committee  established  under  the  Federal Advisory  Committee  Act  (FACA)
representing a cross section  of the scientific community in the public and private sectors.  The
final values are reviewed, approved,  and published by the National Research Council of the
National Academies.

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
                                         IV-35

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may be posed to people or the environment, EPA can block the chemical's entry into commerce
or establish control measures to ensure the chemical's safety  in the marketplace.  Since 1979,
EPA has reviewed more than 33,000 pre-manufacturing notifications (PMNs) and taken actions
to control risks for about 10 percent of these chemicals and microorganisms.

      In 2003, 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. During the
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 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 efforts include  outreach and technical assistance to
encourage safer chemicals and chemical production and use.

                     Chemicals on TSCA  Inventory in 2001
                                                  TSCA Inventory in 1978
                                                  ~ 63,000 Chemicals
              New Chems. added to
              Inventory ~ 16,000
              Chemicals (20%)
                                                   Orig. TSCA Inventory
                                                   ~ 63,000 Chemicals (80%)
       The chart above indicates substantial progress niade in the New Chemicals Program since
its inception in 1978.  In FY 2001(partial year, Oct-July), there  were potentially 79,120
chemicals in commerce;  16,514 of these chemicals, or 20 percent, had gone through the TSCA
Premanufacture Notice review 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.  In recent years, a growing number  of these chemicals are
becoming "greener"  due to several influences.   Although the New Chemicals Program has
always been inherently a Pollution Prevention (P2) program, it has evolved over the years with
an increasing P2 focus.  In addition, the New Chemicals Programs continues to coordinate with
several voluntary P2 programs such as the P2 Framework, Green Chemistry, Green Engineering,
and P2 Recognition Programs (described elsewhere).
                                        IV-36

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       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
certain screening methods and apply the results toward development of safer chemicals.  The
Agency,    working   with
                                                   100 New
                                                  Chemicals
                                                   Audited
    25
 Companies
Participating
  Safer
  New
Chemicals
  Less
Hazardous
  Waste
                              [Sustainable Futures: 2003
                                                                         P2: A Best
                                                                      Business Practice
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.

       In 2001, EPA's technology transfer efforts introduced these risk-screening methods to
industry, and the response was both positive and dramatic.  The participating companies have
indicated that  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, 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.
                                                   HPV Challenge Program
                                              2800 HP V Chemicals Need Hazard Data
                                                          (data as of May 2001)
                                             469 Companies Or Consortia
                                             Voluntarily Committed
                                             To Sponsor HPV Chemicals
                                                                      Commitments
                                                                      From Industry
                                                                      To Sponsor 2155
                                                                      HPV Chemicals
                                         IV-37

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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.  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.   As described  in  the request section, 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 through the Chemical Right-to-Know
program (ChemRTK).

In FY 2003, the ChemRTK program will continue to  review and make publicly available hazard
screening  data on High Production Volume (HPV) chemicals.  While the focus in the  early years
of program  was on  evaluating  the  adequacy of existing data, at this point  in the  program's
evolution, new data generated under  the program will now need assessment. HPV chemicals are
those that are manufactured or imported into the US in quantities of at least one million pounds
per year.

       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 Challenge
screening  program does not include actual  risk assessments on these  chemicals). In addition,
relatively  little is known about 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.  At the
same'time, the design of the ChemRTK program also places an emphasis on reducing the need
for additional tests involving animals wherever possible.

       Basic screening-level information for all 2,800 HPV chemicals are being made available
to the public on an ongoing basis through a voluntary industry challenge and a series of test rules
for those data not obtained through the voluntary program.  The resulting hazard data are being
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
assessment is warranted for chemicals to which children are exposed, under a parallel Voluntary
Children's Chemical Evaluation Program that will be launched in 2002 (a pilot was started in
2001).
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       Much  of the focus  of the Agency in FY 2002 was on assessing the validity of 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  continues to 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.  The requested $2 million increase in base funding for ChemRTK will
bolster our ability to keep pace with industry data submissions, and to increase the cumulative
number of chemical data postings  from  280 chemicals in 2002 to 448 chemicals  in  2003 (.16
percentof the 2,800 HPV's).

       As  new  data generated  to support these categories become available,  in FY 2003, the
Agency will shift its focus to evaluating the category analyses submitted by industry sponsors to
ensure that the  assumptions made in formulating the categories are met and that the use of a
category approach to assessing, interpolating  and extrapolating the health and  environmental
effects across the individual chemicals within them is justified. As such, the focus in FY 2003
will be on priority setting, to determine whether  further action — whether it be higher order
testing, collection of exposure data to begin an evaluation of risk, and/or risk management action
undertaken by the Agency, industry, or the  informed public —  is warranted.  In addition, efforts
to utilize the  hazard classification  guidelines currently being  developed  in the OECD will be
undertaken.   These efforts will be coordinated with  a  pilot effort now being started in the
OECD's Existing Chemicals Program.
       The Agency, in FY 2003,
for identifying use information.
exposure   pathways,   better
assess risks  associated  with
such  exposures, and Identify
potential   unsafe    uses    of
household chemicals and other
consumer products.

Endocrine Disruptor Program

       There   is   increasing
evidence that fish and wildlife
have    been   affected    by
chemicals  that interfere with
the endocrine system resulting
in abnormal development, low
fertility       and      greater
susceptibility to disease.   The
link to human disease is  less
clear at ambient environmental
levels,  although effects  have
been    observed   at   high
exposure sites.
will continue to work with stakeholders to explore possibilities
Use information would allow the Agency to identify chemical
  Timeline for the Implementation of the Endocrine
              Disruptor Screening Program
 2001   2002  2003  2004  2005
 Sorting and
 Priority Setting
 Tier 1 Screening Assay
     opment and
  alidation
 Tier 2 Screening Assay Development and
 Validation
                   Phase 1
                   Screening and
                   Testing Begins
•Sorting and Priority Setting narrows the
list of chemicals from the list of 87,000 using
existing chemical data and screening tools
•Tier1 is a battery of in vitro and in vivo
short-term screening assays that identify
chemicals having the potential to interact with
the estrogen, androgen and thyroid systems,
Chemicals positive in Tier 1 screening battery
will be tested in Tier 2.
•Tier 2 consists of multi-generation tests in
mammals, birds, fish, amphibians and
invertebrates and will provide information on
the adverse effects of the chemical and other
information needed to assess the hazard of
substances to these organisms.
•Phase 1 Starts testing chemicals from the
sorting and priority setting stage using the
validated Tier 1 assays.
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       The Food Quality Protection Act Amendments of 1996 mandated that EPA test pesticides
for estrogen effects on human health. The Safe Drinking Water Act Amendments of 1996 permit
EPA to test contaminants found in drinking water sources.  Given the controversial nature of the
endocrine disrupter issue, the Agency established the Endocrine Disrupter Screening and Testing
Advisory  Committee (EDSTAC) under the Federal Advisory Committee Act,  EDSTAC
included representatives from industry, environmental and public health groups, academia, and
Federal and state  government.  On the basis of science, EDSTAC recommended  that the
screening program include:  commercial chemicals and contaminants; estrogen,  androgen and
thyroid endpoints; and wildlife as well as human health effects.

       EPA based its EDSP on the EDSTAC recommendations.  The EDSP is a two-tiered
program.  Tier 1 is a battery of in vitro and in vivo short-term screening assays that  identify
chemicals that have the potential to interact with the estrogen, androgen,  and thyroid  systems.
Chemicals positive in the Tier 1 screening  battery  will be tested in Tier 2.  Tier 2 consists  of
multi-generation tests in mammals, birds, fish, amphibians and invertebrates and will  provide
information on the adverse effects of the chemical and other information  needed to assess the
hazard of substances to these organisms.  FQPA  mandated that all assays used in the EDSP be
validated.  Validation is a science-based process and has required application of cutting edge
science,  domestic  inter-agency  and   international  cooperation, and  on-going  stakeholder
involvement. In 2003 EPA will continue to  develop and validate Tier 1 and 2 screens and tests.
In 2004 EPA will start testing chemicals identified through the Sorting and Priority Setting Stage
using validated Tier 1 screening assays.

Research

       There are over 70,000 existing chemicals in the Toxic Substances  Control Act (TSCA)
inventory and an additional 2,000 chemicals are added annually.  Each year, 1 billion pounds of
active  ingredients found in  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. In FY 2003, the Agency
will continue to conduct research to reduce risks associated with releases of pesticides and other
toxic chemicals and improve the safety   of our communities, homes, work  places, and
ecosystems.  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.

       In  addition, the  Agency  will launch new efforts to address  the risks associated with
biotechnology.  Biotechnology presents a wealth of opportunities from genetically engineered
crops to improve  productivity,  provide  resistance to pests  and  other stresses,  and  increase
nutritional value.  But concerns about potential risk  and our ability to manage these risks, driven
primarily by a lack  of  information, have created considerable  public concern.   The  research
proposed here will provide information needed  to evaluate three plausible concerns: 1) potential
allergenicity of proteins introduced into the food supply by engineered crops;  2) potential
                                         IV-40

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adverse ecological effects on non-target species; and 3) potential development of pest resistance
to the engineered crops,

Human Health Research

       Humans are exposed every day to thousands of chemicals individually and/or in 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, occurring singly or as complex mixtures.

       Health effects methods and  models research in  FY 2003  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 of new chemicals into commerce.  Research  will
address the needs for  methods to  evaluate  effects associated  with a variety  of exposure
conditions and the special sensitivities of certain subpopulations (including children) 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 2003, 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). The AHS  is a
large  epidemiological study on the  health of men and women in agriculture.  The primary
objective of the EPA exposure study is to collect high quality exposure data that can be used to
evaluate how accurately the AHS questionnaire  classifies pesticide application activities  and
enables the  prediction of applicator exposure and dose.  The Agency will complete sample
analysis for the study and initiate data analysis in FY 2003'.

      - The  results of the application of methods developed under this research program will
significantly increase understanding  of the impacts of specific classes of pesticides arid toxic
substances on human health.

Ecological Research

       Over the long term, ecosystem 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 due to the need for better understanding of environmental
srressors 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.
                                          IV-41

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       In FY 2003, ecosystem effects research will address: 1) the development of appropriate
screening and higher tier ecological effects models;  2)  the  development  of pharmacokinetic
models to estimate/extrapolate  tissue concentration  of chemical agents from laboratory  test
organisms to wildlife species of concern; and 3) the relative influence of exposure to chemicals
and  other environmental agents, habitat  alterations, land use, and  the natural variability on
sustainability of wildlife populations. Research will also develop and validate predictive models
to identify and characterize ecological hazard and risk.

       The exposure research program will focus on applying larger-scale risk assessment tools
to pesticide and toxic substance issues, and refining existing aquatic exposure assessment models
used to assess the impacts of pesticides and toxics on broader scales of ecological organization.
Ecological exposure  modeling research  will  develop  and  validate enhanced probabilistic
exposure  modules supporting large-scale  ecological risk  assessments.  Analytical methods for
chiral pesticides (i.e., organic compounds that have two or more mirror image structures) will be
developed and field validated.

Biotechnology Research

       Biotechnology, which has  applicability to both human health and  ecological research,
presents a wealth of opportunities from genetically engineered crops to improve productivity,
provide resistance to pests and other stresses, and increase nutritional  value.  However, concerns
about  potential risk and our ability  to manage these risks, driven primarily by  a lack of
information, have created considerable public concern. New research in FY  2003 will provide
information needed to evaluate three significant concerns: 1)  allergenicity;  2) potential adverse
ecological effects; and 3) enhancing resistance and minimizing or preventing gene transfer.

       Allergenicity research will develop models  that represent  human responses to food
allergies and can be used to detect allergenic proteins, identify factors that influence risk, and
develop hypotheses that could be tested in human clinical or epidemiologic studies. Research on
natural transfer of modified genes and adverse ecological effects will develop probabilistic risk
assessment models that measure and simulate gene flow from a herbicide resistant crop to non-
target species that may result in herbicide resistant weeds.

       Pest resistance  and  gene transfer  research will  develop conceptual tools  to manage
resistance in pests using Bt corn and Bt cotton as prototypes (Bt is  a naturally-occurring soil-
borne bacterium that is found worldwide; a unique feature of this bacterium is its production of
crystal-like proteins that selectively kill specific groups of insects)  - the conceptual tools  will
then be tested under actual field conditions.  Test conditions will consist of planting engineered
crops and establishing different buffering,  rotation, and harvesting  schemes.  Strong potential
exists  for resistance management tools to  be effective in mitigating  the transfer of engineered
genes to non-target species. Therefore, research to further develop these tools will be conducted
to expand their application to gene transfer management and support the  development  of the
probabilistic risk assessment models, mentioned above.
                                          IV-42

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FY 2003 Change from the FY 2002 President's Budget

EPM
       (+$2,000,000)  Additional funds are requested beyond the FY 2002 President's Budget
       request for EPA to review and make public the pending increase in toxic chemical testing
       information  being  submitted  by   companies under  the High  Production Challenge
       Program, and to implement the Voluntary Children's Chemical Evaluation Program and
       outreach efforts for the HPV Program.

•      (-$3,000,000)  One-year Congressional  directed increase above FY 2002  President's
       budget request.

•      (-$1,102,200, -1.3  FTE)  This decrease reflects return to  base levels after  one-year
    .   Emergency Supplemental funding increment.

•      (+$747,000, +3.4 FTE) Shift in FTE and certain overhead costs to better reflect program
       under GPRA.

Research

S&T

       (+$4,875,000)  This new funding intiative in FY 2003 supports EPA's efforts to address
       the  risks  associated  with biotechnology.  Research  will  provide sound scientific
       information  required to understand  the benefits and the  risks of using  genetically
       engineered crops.  The research will address three potential areas of risks: allergenicity,
       gene transfer,  and  pest  resistance.  Novel approaches (tools, methods) to assess and
       manage potential risks from genetically modified organisms (GMOs) will be developed,
       including: 1) models that represent human responses to food allergies and can be used to
       detect allergenie proteins;  2) probabilistic risk assessment  models that  measure and
       simulate gene flow from a herbicide resistant crop to non target species that may result in
       herbicide resistant weeds; and 3) conceptual tools to manage  resistance in pests initially
       using Bt corn and Bt cotton as prototypes - subsequent to development, these tools will
       be tested under field conditions,

•      (+$348,400, +4.0 FTE) This increase enhances EPA's effort in computational toxicology
       and provides additional  research support to  the Children's Health Research Program.
       This research  is designed to  address the need for  methods to  evaluate the special
       sensitivities  of children to pesticides and other toxic chemicals.   As a  result, EPA
       advances its ability to assess and predict the human health and ecological risks from
       environmental exposures.

•      (+$123,500,  +1.0 FTE) This increase in resources  will be used to coordinate EPA
       scientific participation in regulatory development with  program office on major rules.
                                         IV-43

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         (-$2,389,000,   -12.0   FTE)      This   reduction   eliminates   funding   for   FY  2002
         Congressionally-directed research.


         (-$487,500) The FY 2003 Request is $487,500 below the 2002 Enacted budget due to the

         Congressional  Earmarks  received  during  the  appropriations  process  which  are   not
         included in the FY 2003 President's Request.


Annual Performance Goals and Measures


New Chemicals and Microorganisms Review

In 2003        Of the approx. 1,800 applic. for new chem, and microorganisms submitted by industry, ensure those marketed are safe for
              humans and the envir. Increase proportion of commer. chem. that have undergone PMN review to signify they are properly
              managed and may be potential green altern. to exist, chem.

In 2002        Of the approx. 1,800 applic. for new chem. and microorganisms submitted by industry, ensure those marketed are safe for
              humans and the envir. Increase proportion of commer. chem. that have undergone PMN review to signify they are properly
              managed and may be potential green altern. to exist chem.

In 2001        EPA reviewed 1,770 Premanufacturing Notices. By the end of 2001,21 percent of all chemicals in commerce had been assessed
              for risks.

Performance Measures:                                     FY2001           FY2002           FY 2003
                                                         Actual            Enacted            Request
TSCA Pre-Manufacture Notice Reviews                                1770              1800              1800      Notices

Notice of Commencements                                          21.0             21.6%             22.3%      NOCs(Cum)



Baseline:       In FY 2000, there were potentially 78,598 chemicals in commerce; 15,992 of these chemicals had gone through the TSCA
              Premanufacture Notice (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.


Testing of Chemicals in Commerce for Endocrine Disrupter

In 2002        Standardization and validation of screening assays.

In 2001        The two screening assays were not completed.

Performance Measures:             .                        FY2001           FY2002           FY 2003
                                                         Actual            Enacted            Request
Screening Assays Completed                                                             1                        Screening assay
Baseline:       The non-prioritized universe of chemicals that needs to be considered for prioritization includes:  pesticide active ingredients,
              pesticide inert ingredients, chemicals on die TSCA Inventory, environmental contaminiants, food additives, Pharmaceuticals,
              cosmetics, nutritional supplements, and representative mixtures. "Priority-setting" refers to the determination of priorites for
              entry into Tier 1 Screening.


Expand Information on Toxic Substances

In 2003        Provide information and analytical tools to the public for assessing the risks posed by toxic chemicals

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        Data was obtained from test plans submitted by industry for 724 chemicals already in commerce

Performance Measures:                                  .   FY2001           FY2002           FY2003
                                                          Actual             Enacted           Request
                                                       IV-44

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 Performance Measures:                                         FY2001            FY.2002            FY2003
                                                                Actual              Enacted             Request
 Provide current national risk screening information to the                       1                    1                           Tools
 public

 Completion of community risk identification analyses                           2                    2                           Analyses

 Number of initialled/completed risk assessments for                                                                    4  •    Actions
 chemicals

 Complete EPA-HQ risk-based priority setting exercise                                              3                           Analyses

 Number of submissions using exposure assessment methods,                                                         80%      Submiss. (cum)
 batabases,  and models

 Number of users of exposure assessment methods, databases               •                                          500      User
 and models

 Establish state toxics management programs                                                                           1      Pilot Programs

 Complete EPA risk-based regional office priority-setting                                            5                           Analyses
 system

 Complete state risk-based priority setting exercises                                                 6                           Exercises

 Expand use of risk screening environmental indicators tools                                         1                           Country
 to other countries that adminster pollutant release and
 transfer registries

 P2 and Risk Management Guidance Documents                                                    2                           Docs./Manual

 Training Workshops                                                                            1                           Workshops



 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 FY
                2002. First expanded use of risk screening tool by other countries will occur in FY 2002.


 Risk Screening Environmental Indicators

 In 20.03         Reduce by 3.0% cum. 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.

. In 2003         Reduce by 4.0% cum. the risk-related score assoc. with air & water release pathways for chronic human hlth calc. for releases &
                transfers of toxic chem.  rptd to TRI from the level calc. for the preceding year.after adjusting for chgs in production indices for
                the rnanuf.miniiig & 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.

 In 2002         Reduce by 3.0% annually the  risk-related score assoc. with air & water release pathways for chronic human hlth calc. for
                releases & transfers of toxic chem. rptd to TRI from the level calc. for the preceding year.after adjusting for chgs in production
                indices for the manuf,mining  & utilities sectors

 Performance Measures:                                          FY2001             FY2002             FY2003
                                                                Actual              Enacted             Request
 Reduction in the year 2002 production-adjusted RSEI hazard-                                   1.5%               3.0%      Index
 based score of releases and transfers of toxic chemicals
 reported to TRI from the level calculated for 2001 (reported
 in 2004).

 Reduction in the year 2002 production-adjusted RSEI risk-                                       3%               4.0%      Index
 based score of releases and transfers of toxic chemicals
 reported to TRI from the level calculated for 2001 (reported
 in 2004).



 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.
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PBT Profiler

In 2003        Provide industry with user-friendly computerized tools that allow new chemical product alternatives to be evaluated at early
               stages of design process.

In 2002        Provide industry with user-friendly, computerized tools that allow new chemical product alternatives to be evaluated at early
               stage of design process.

Performance Measures:                                         FY2001            FY2002            FY2003
                                                               Actual              Enacted            Request
Number of users of the PBT Profiler                                                           50                 100       Users

Number of Chemicals Profiled                                          '                     500                1000       Chemicals

Number of Companies Participating in Sustainable Futures                                                           25       Participants

Number of Self-Audited New Chemical Product Alternatives                                                         100       Alternatives
Baseline:       In FY 2002 the Agency made powerful risk screening software (the P2 framework) broadly available to chemical industry,
               including providing regulatory relief as an incentive to drive chemical risk screening and P2 outcomes.  In FY 2003, the Agency
               will audit Premanufacture submissions to determine the number of companies participating and the total number of self-audited
               product alternatives.

Protect from Acute Exposure to Extremely Haz. Cliem

In 2003        Establish short-term exposure limits for a wide range of acutely toxic substances that are protective of general public, including
               children, infants, the infmned, and the elderly through the Acute Exposure Guideline Levels  (AEGL) Program

Performance Measures:                                          FY2001            FY2002            FY2003
                                                               Actual             Enacted            Request
Chemicals Addressed by AEGL Program                                                                           33       Chemicals

Number of AEGL values generated that will protect workers                                                         495       Values
and general public



Baseline:       Baseline is 2002; calculation methodology by addition of AEGL values (10 minute, 30 minute, 1 hour, 4 hour, and 24 hour
               exposure periods) and numbers of chemicals addressed.


Research

Research on Commercial Chemicals and Microorganism

In 2003        Provide a strategic framework for developing an integrated suite of tools that will enhance OPPTS procedures for assessing the
               risks to human  health and ecological systems associated with commercial chemicals, microorganisms, and genetically modified
               organisms.

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^ arid risk management strategies.

In 2001        EPA produced  guidance on the use of structure activity relationships, as well as data on exposure of farm applicators to
               agricultural pesticides to improve the characterization of health risks and reduce community exposures to environmental
               chemical stressors.

Performance Measures:                                          FY2001            FY2002            FY2003
                                                               Actual             Enacted            Request
Guidance in the use of Structure Activity Relationships                        1                                              guidance
(SAR) computer technologies.

Create searchable database from existing toxicity databases                                         1                           database
to enable researchers and risk assessors to explore structure-
activity associations across toxicity endpoints of regulatory
interest.

Use QSAR models and animal test methods to meet                                                          09/30/2003       methods
regulatory objectives associated with tiered human health and
ecological risk assessments of commercial chemicals,
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Performance Measures:                            FY2001         FY2002         FY 2003
                                            Actual         Enacted         Request
microorganisms, and GMOs.

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 Pre-manufacture Notice  Reviews

Performance Database:  New Chemicals Management Information Tracking System (MITS),
which tracks information from beginning of Premanufacture Notice (PMN) program (1979) to
present. Information includes  number of PMNs  submitted and  final disposition  (whether
regulated or not) and number of low volume and test market exemptions.

Data Source:  As industry develops new chemicals, it submits data related to the new chemicals
for review to the Agency, including information on chemicals to be manufactured and imported,
chemical .identity, manufacturing process,  use, worker exposure, environmental releases and
disposal.

QA/QC  Procedures:   Local  Area Network  (LAN) server contains confidential  business
information  (CBI)  support documents  on each of  the  chemicals;  data undergo quality
assurance/quality control by EPA before being uploaded  to the LAN.  EPA always checks for
consistency among similar chemicals in databases.

Data Quality Review: EPA reviews industry data; EPA staff scientists and contractors perform
risk screenings and assessments which could lead to regulation.

Data Limitations: None known.

New/Improved Data or Systems: None planned.

.Performance  Measure:  After  reviewing  submissions from companies,  make screening
quality health and environmental effects data publicly available for 2,800 HPV chemicals

Performance  Database: EPA is  developing  an electronic chemical right-to-know  database
system, called  the  U.S.  High Production  Volume (US HPV)  database,  which  will  allow
organized storage and retrieval  of all available information on  High  Production Volume
chemicals in commerce in the United States. The US HPV database will be designed to store in
a systematic fashion, physical chemistry, fate, exposure, and toxicity  data on listed chemicals for
Agency and public use.

Data  Source: Industry submits test plans  and robust summaries  of risk screening data in
response to the voluntary HPV Challenge program or EPA promulgated test rules.
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QA/QC Procedures: Data undergo  quality assurance/quality  control by EPA before  being
uploaded to the database. EPA reviews industry submissions of robust summaries of hazard data
on individual chemicals and chemical categories, and test plans based on those summaries. EPA
determines whether  industry data adequately support the summaries and test plans.  Data review
does not include new information received as a result of new testing.

Data Quality Review:  Review of industry data.

Data Limitations: Data are primarily hazard  data, not exposure data.  Data are suitable to
support screening level assessments only.

New/Improved Data or Systems: "Data will be integrated with other Toxic Substances Control
Act (TSCA) databases into an Oracle environment.

Coordination with Other Agencies

       EPA's chemical testing data provides information for the Occupational Safety and Health
Administration's (OSHA) worker protection programs, the National Institute for Occupational
Safety and Health .(NIOSH) for research, and the Consumer Product Safety Commission (CPSC)
for informing consumers about  products through labels. EPA frequently consults with these
agencies on project design, progress and the results of chemical testing projects.

The Endocrine Disrupter program works closely with numerous federal agencies informally  and
formally through the FACA subcommittee on screening and testing, notably CDC, NIEHS,  and
NIH.

Research

       EPA is among  six agencies within the Federal  government that  conducts intramural
human and  environmental health  research (EPA, National Institute  of Environmental Health
Sciences, National Cancer Institute/National Institutes of Health, Center for Disease Control  and
Prevention,  Food and Drug Administration, and Agency for Toxic  Substances  and  Disease
Registry). The Agency conducts research in all elements of the human health risk assessment
paradigm  (i.e., exposure,  effects,  risk  assessment, and risk  management),  making EPA's
contribution unique within the Federal government. EPA is widely recognized both nationally
and internationally for its work in identifying the relationship between human health effects  and
exposure to environmental pollutants.  Basic  research on the mechanisms underlying  these
effects in combination with problem-driven research programs contribute significantly to the
Agency's ability to fulfill its goals and objectives under several environmental mandates.

       Collaborations with other  Federal  and international  research organizations create an
atmosphere  in which the impact of the individual programs is strengthened  and the overall
positive impact on public and environmental health is significantly increased.  In FY 2003, the
Agency will continue its  cooperation  with NCI,  NIEHS, and the National  Institute  for
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Occupational Safety and Health (NIOSH) on the Agricultural Health Study, which is a study of
the health of men and women in agriculture.

Statutory Authorities

Toxic Substances Control Act (TSCA) section 4 , 5, 6, 8, 12(b) and 13 (15 U.S.C. 2603-5,2607,
261 land 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, 136i, 136p,  136v, and 136w)

Federal Food, Drug, and Cosmetic Act (FFDCA)

Research

Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
Toxic Substances Control Act (TSCA)
Federal Food, Drug, and Cosmetic Act (FFDCA)
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

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

Objective: Ensure Healthier Indoor Air.

      By 2005, 16 million more Americans than in 1994 will live or work in homes, schools, or
office buildings with healthier indoor air.

                                Resource Summary
                                (Dollars in Thousands)

Ensure Healthier Indoor Air.
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$39,190.4
$27,363.8
$3,810.4
$8,016.2
116.4
FY2002
Enacted
$39,670.1
$29,843.4
$1,686.8
$8,139.9
134.0
FY 2003
Request
$40,322.7
$30,455.1
$1,727.7
$8,139.9
132.2
FY 2003 Req.
v.FY.2002Ena.
$652.6
$611.7
$40.9
$0.0
-1.8
                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Air,State,Local and Tribal Assistance Grants:
Other Air Grants
Children's Indoor Environments
Facilities Infrastructure and Operations
Indoor Environments
. Legal Services
Management Services and Stewardship
Radon
Regional Management
FY2001
Enacted
$88.8
$8,139.9
$14,714.1
$0.0
$9,241.9
$85.8
$141.0
$6,222.7
$0.0
FY 2002
Enacted
$0.0
$8,139.9
$13,287.9
$1,799.7
$9,366.2
$92.8
$526.6
$6,453.0
$4.0
FY 2003
Request
$0.0
. $8.139.9
$13,918.4
$1,846.2
$9,307.6
$103.5
$513.2
$6.493.9
$0.0
FY 2003 Req.
v.FY.2002Ena.
$0.0
$0.0
$630.5
$46.5
($58.6)
$10.7
($13.4)
$40.9
($4.0)
FY 2003 Request

Health Effects of Indoor Air Pollution

      Research  conducted  by  the  Environmental  Protection  Agency  (EPA)  and others,
beginning in the late 1970's, indicates that Americans spend about 90 percent of their time
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indoors, where they are exposed to levels of pollutants that are often higher than those outdoors.
As  a result, indoor air pollution poses high risks  to human health, especially to sensitive
populations, and has been ranked  among the top four environmental risks in relative risk reports
issued by EPA, the Science Advisory Board, and several states. Estimates of the economic costs
to the Nation of poor indoor air quality, including lost worker productivity, direct medical costs
for those whose health is adversely affected, and damage to equipment and materials, are on the
order of tens  of billions of dollars  per year. (Report to  Congress on Indoor  Air Quality,
EPA/400/1-89-001).   In 2000,  the  National Academy of Sciences  (NAS)  affirmed the
significance of indoor triggers of asthma and the alarming increase in asthma rates nationwide
(Clearing the Air: Asthma and Indoor Air Exposures,  (ISBN 0-309-06496-1, January 2000).

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

•      Nearly  one in  13  school-aged children has asthma.   There  is substantial evidence that
       indoor exposures to dust mites and environmental tobacco smoke (ETS) play a significant
       role in  triggering  asthma  episodes, and, in some instances, are causally linked to the
       development of the disease.  (Institute  of Medicine, National Academy of Sciences
       (U.S.)).  Committee on the Assessment of Asthma  and  Indoor Air. Clearing the Air:
       Asthma and Indoor Air Exposures. 2000. Washington. National Academy Press.)

••     Asthma's estimated annual cost to the Nation is $11.3 billion (National Heart, Lung, and
       Blood Institute, (NHLBI) 1998).

••     Young  children  are exposed  to 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 EPA in 1994 and 1996. EPA  expects updated
       results in late FY 2002.)

•*     A  1995 report by 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 in schools. (School Facilities:  Condition of America's Schools, Report
       to  Congressional Requesters,  U.S. General Accounting  Office,  GAO/HEHS-95-61.,
       February 1995 and Condition of America's Public School Facilities: 199, National Center
       for  Education Statistics,  Office  of  Educational Research and Improvement, U.S.
       Department of Education,  NCES2000-032, June 2000.)

••     Radon is the second leading cause of lung cancer and is estimated to be responsible for
       15,000  to 22,000 deaths per year (BEIR VI, NAS, February 1998).  Nearly one out of
       every 15 homes is estimated to have radon concentrations above the EPA recommended
       action level. (National Residential Radon Survey, 1992)

Indoor Environments Program Strategy

       EPA has two major strategies to meet its human health objective for indoor air quality:
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Increase Public Awareness

EPA raises public awareness of actual and potential indoor air risks so that individuals
can take steps to  reduce exposure.   Outreach activities, in the form of educational
literature, media campaigns, hotlines, and clearinghouse operations, provide essential
information about indoor air health risks not only to the public, but to  the professional
and research communities as well.  Underpinning EPA's outreach efforts is a strong
commitment  to environmental justice,  community-based risk reduction, and customer
service. For example, the award-winning media campaign undertaken in partnership with
the Advertising Council seeks to educate people about asthma and the role that indoor
environmental triggers can play in the worsening of the disease.

Increase Partnerships

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

To reach people at the local  level,  EPA uses assistance agreements  and cooperative
partnerships  to collaborate  with  organizations such  as  the  American Academy of
Pediatrics, the Asthma and Allergy Foundation of America, the National Association of
Counties, the  National 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 allow EPA to successfully  reach and educate
target audiences, which include: health care providers who treat children  with asthma,
school personnel who manage the environments where children spend many hours each
day, county and local environmental health officials, and disproportionately affected and
disadvantaged  populations.    Through  this  national  partner network  of over  30
organizations  and more than 1,000 local field affiliates, EPA  leverages the personnel,
expertise, and credibility of these groups to provide  the tools to  their target audiences,
and to the general public, to make informed decisions about reducing health risks in their
indoor environment.

EPA  will broaden  awareness  and action through  national organizations focused on
addressing indoor asthma triggers, as  well as other indoor health risks. EPA will partner
with other  local community-based organizations for  implementation.  These assistance
agreements  will provide maximum  flexibility for  states  and communities to design
programs that address  critical indoor  air quality problems,  including asthma, mold
contamination, and secondhand smoke in homes, in child care and school facilities, and
in other residential environments.  Some of the residential environments, such as  multi-
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       family, low-income housing,  may involve complex issues of Control and resources.
       Schools may have a range of indoor environmental problems that  can  be addressed
       through community-based efforts.

Indoor Environments: Children's Health Emphasis

Asthma

       Childhood asthma has been characterized by the Centers for Disease Control (CDC) 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 four to six million children had asthma (National
Center for Health Statistics, CDC).  In 1996, 210,000  hospitalizations for asthma were for
children under the age of  18 (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).  While there  is no known cure  for asthma at
this tune, the medical community agrees, 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  three primary audiences to  help address
indoor asthma triggers nationwide:  the  general public, school and child  care communities, and
the health care providers.

       For FY 2003, EPA is integrating programs across the Agency in an effort to address the
serious issue of children's environmental health in schools. The initiative, developed through the
Office of Children's Health Protection, includes a cross-media component that  will provide
comprehensive,  easily  accessible  information and guidance  to schools  on how to  reduce
potentially harmful exposures to pollutants in schools.  It also includes components designed:  to
improve  indoor air and  reduce  asthma attacks  in  schools;  to  implement  integrated  pest
management programs in schools; and to reduce exposure to lead and mercury in schools.

      . In FY 2003, EPA  will  build on the success of its national "Indoor Air Quality (IAQ)
Tools for Schools"(TfS) program and expand implementation  of this program to many more
schools. Adoption of EPA's low-cost/no-cost guidelines for proper operation and maintenance of
school facilities results in a healthier indoor environments for all students and staff, but  is of
particular help to children with asthma, lessening the degree to which they are exposed to indoor
asthma triggers.  By increasing the number of schools where TfS indoor air quality guidelines are
adopted and implemented, healthier indoor air will be provided for over a million students, staff,
and faculty. The Agency will continue to promote the adoption of healthy building practices in
both existing school operations and  in the design and construction of new schools.

       Preliminary results, based on feedback from customers, have shown  schools and school
districts across the Nation are reaping the benefits of improved indoor air quality by successfully
implementing the IAQ TfS Kit and Program. To increase awareness  of the TfS Program and
promote good indoor air quality for schools, the Agency partners with various non-governmental
organizations to sponsor  an annual  schools  symposium,  bringing together school officials,
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nurses, teachers, facility managers, parents, and others to discuss current issues and the potential
negative effect poor indoor air quality can have on our children's health.  In FY 2001, the IAQ
Schools Symposium  attracted  over 360  participants, exceeding  initial projections  of 250
participants.

       EPA will continue to refine the IAQ TfS training materials as new information becomes
available,  using customer feedback gathered from  school  case studies.   These case studies
describe certain schools' experiences  and processes associated with implementing good IAQ
strategies  and practices, including  how different barriers were  overcome  (financial, legal,
managerial, health-related, or community-related) through teamwork and a strong commitment
to providing a healthy learning environment for students and staff. Results of the national survey
of school  operation and maintenance practices conducted in FY 2002 and information gained
from EPA's uniform tracking system  will be used to further shape program direction for  FY
2003.

       EPA also will provide funding to  introduce  school-based asthma education programs,
such as the  American Lung  Association's "Open Airways" and the National Association of
School Nurses'  "Managing Asthma Triggers: Keeping Students Healthy," into hundreds of
additional schools  nationwide, with  an  emphasis  on reaching  inner  city  schools  with
disproportionately affected populations.  These programs teach students with asthma to  identify
and control their exposure to asthma triggers in their environment  and help staff and teachers
understand the steps they can take to  improve their school's asthma management.

       EPA will continue to conduct its national public awareness campaign to enhance  the
general public's understanding of indoor asthma triggers and the steps they should take to reduce
their exposure.  Particular attention  will be focused on children with asthma, their care givers,
low income adults with asthma, and  members of the public who, because  of their advanced age,
are more vulnerable to poor indoor conditions. EPA also will provide support and direction to
community organizations serving seniors and community-based asthma intervention groups that
educate low-income residents about the environmental  components of asthma in residential
settings.  These efforts are  expected to increase the number of Americans educated about IAQ
and to  spur  action- on reducing exposure  of children and older Americans  to  indoor air
contaminants.

       In  FY 2003, the Agency will expand its existing efforts to educate affected populations
about asthma and  how they can identify elements  in their settings that may trigger asthma
episodes, and address them.  Successful interventions continue to be demonstrated by a number
of community-based  pilot  programs  (e.g..  National Cooperative  Inner City Asthma Study,
Bureau of Primary Health Care Asthma  Collaborative, Centers of Excellence in Children's
Environmental Health Research). Those interventions determined to be most  effective will be
replicated in  an attempt to  reach increasingly larger audiences with programs tailored to their
particular  needs, teaching practical skills as well as motivating behavioral  change. For example,
in FY 2000,  the year for which data is the most complete and accurate,  the Agency partnered
with the Asthma and Allergy Foundation of America to  educate  more than 800 child-care
providers  on how  to provide a safe  and  healthy environment for children with  asthma  and
allergies.  Combined, these  child-care providers administered care for over 9,000 children in FY
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2000.  Pre- and post-tests indicate a marked improvement in participant knowledge of asthma.
As a result of the training, almost 90% of the participants indicated they would make changes in
the child-care setting to reduce exposures to indoor asthma triggers, with most planning multiple
interventions.

       EPA  expects, as  a result of Agency programs, 834,400 Americans will be living in
healthier residential indoor environments in FY 2003.  Part of meeting this goal includes the
Agency expanding its successful community-based educational partnerships addressing sound
indoor environmental management. For FY 2003, the Agency expects to use these partnerships
to educate  122,400 people with asthma, and their care-givers, about improved indoor air quality
techniques.

       The Agency will continue to focus on ways to assist the health-care community to raise
its awareness of, and the attention it pays  to, indoor asthma triggers and their role in provoking
asthma attacks in those with the disease. EPA, in conjunction with the Department of Health and
Human Services (HHS),  will step up its interactions with managed care organizations to  help
assess the effectiveness of current asthma care practices and to encourage greater emphasis on
avoidance  of asthma triggers, as part of a comprehensive asthma treatment regimen.  Lessons
learned from national and regional  forums about how to better integrate medical treatment and
environmental management will be a focal point of these interactions.

Environmental Tobacco Smoke

       As  of 1996, young children were being exposed to ETS in 27% of U.S. homes.   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 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,  as ETS exposure increases the number of episodes and
severity of symptoms for up to a million asthmatic children  (Respiratory Health Effects of
Passive Smoking: Lung Cancer and Other Disorders, U.S. EPA, 1993 and National Cancer
Institute, Health Effects of Exposure to  Environmental Tobacco Smoke, Monograph No.  10).
Recent studies also have suggested  links between ETS exposure, sudden infant death syndrome,
and low birth weight (National Cancer Institute, Health Effects of Exposure to Environmental
Tobacco Smoke, Monograph No. 10).

       To  address this health risk, the Agency will pursue its multi-media  campaign on ETS,
with a focus on expanding participation in 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 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 and to provide support to state and local governmental tobacco control programs to address
this issue.
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Indoor Environments: Homes. Schools, and Buildings Programs

       EPA continues to work toward bottom line results for the Indoor Environments base
programs.  This includes the number of 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; to  states,
Tribes, and other governmental agencies, and to 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 state
grant program helps:
    •  establish  the  basic elements of an effective Radon Program in states that have not  yet
       done so;
    •  support innovation and expansion in states that currently have programs in place; and
    •  strengthen  the Federal/state  partnership  by  helping  states develop  radon program
       elements and activities.

       In light of changed world  events, EPA received numerous  requests from building and
home owners asking for guidance on how to clean inside buildings, ensure safety,  and determine
when it is safe to re-enter buildings.  EPA, in coordination with the U.S. Department of Health
and Human Services (HHS), plans to  continue work begun in FY 2002 to develop guidance and
training for builders, building owners, managers, and designers on techniques to reduce building
vulnerability and effectively respond to chemical, biological; or radiological threats.
Annual Performance Goals and Measures

Healthier Residential Indoor Air

In 2003       834,400 additional people will be living in healthier residential indoor environments.

In 2002       834,400 additional people will be living in healthier residential indoor environments.

In 2001       An additional 890,000 additional people are living in healthier residential indoor environments.

Performance Measures:                               FY2001   •      FY2002         FY2003
                                                Actual          Enacted         Request
People Living in Healthier Indoor Air                          890,000          834,400          834,400     People


Baseline:      1. By 2003, increase the number of people living in homes built with radon resistant features to 3,635,000 from 600,000 in
            1994'. (cumulative) 2. By 2003, decrease the number of children exposed to ETS from 19,500,000 in 1994 to 16,889,000.
            (cumulative) 3. By 2003, increase the number of people living in radon-mitigated homes to 1,625,700 from 780,000 from 1994.
            (cumulative) 4. By 2003, increase by 122,400 the number of people with asthma and their caregivers who are educated about
            indoor air asthma triggers.

Healthier Indoor Air in Schools

In 2003       1,050,000 students, faculty and staff will experience improved indoor air quality in their schools.

In 2002       1,228,500 students, faculty and staff will experience improved indoor air quality in their schools.

In 2001       An additional 1,930,000 students, faculty and staff are experiencing improved indoor air quality in their schools.


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 Performance Measures:

 Students/Staff Experiencing Improved 1AQ in Schools
FY2001
 Actual
   1,930,000
FY.2002
Enacted
   1,228,500
FY 2003
Request
  '1,050,0.00
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. ForFY 2003, the
           program projects an additional 2,000 schools will implement the guidance and seeks to obtain implementation commitments
           from 5 of the 50 largest school districts in the U.S. with an average of 140,000 per district. (Additional, not cumulative since
           there is not an established baseline for good IAQ practices in schools.)
 Verification and Validation of Performance Measures

 Performance Measure: People Living in Radon Resistant Homes

 Performance Database: Survey

 Data Source: The survey is an annual sample of members of the National Association of Home
 Builders  (NAHB),  the  number of homes they built,  and the percent that  were built radon
 resistant.  NAHB members construct  95% of the homes built in the U.S. each year. Using a
 model reviewed by EPA, NAHB estimates the percentage of these homes that are built radon
 resistant.  The percentage, built radon resistant from the  sample is then used to estimate  what
 percent of all homes built nationwide are radon resistant.  To calculate the number of people
 living in radon resistant homes, EPA assumes an average of 2.67 people per household.

 QA/QC  Procedures:  Because data  are obtained  from  an external organization,  QA/QC
 procedures are not known.

 Data Quality Review: N/A

 Data Limitations: Because the survey sample does not include builders who are non-members
 of NAHB, the resulting estimate may underestimate the total number of homes built radon
 resistant.

 New/Improved Data or Systems: None

• Performance Measure:  People Living in Radon Mitigated Homes

 Performance Database: External

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

 QA/QC  Procedures:  Because data  are obtained  from  an external organization, QA/QC
 procedures are not known.
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Data Quality Review: N/A

Data Limitations: Reporting by radon fan manufacturers is voluntary and may underestimate
the number of radon fans sold. Nevertheless, these are the best available data to determine the
number of homes mitigated.  There are other  methods to  mitigate radon including: passive
mitigation techniques of sealing holes and cracks in floors and foundation walls, installing sealed
covers over sump pits, installing one-way drain valves in untrapped drains, and installing static
venting and ground covers in areas like crawl spaces.  Because there  are no  data on the
occurrence of these methods, again there is the  possibility that the number of radon mitigated
homes has been underestimated.

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: Survey is 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 limitations of
voluntary telephone surveys of representative samples. Limitations of phone surveys include:  1)
inconsistency of interviewers following survey directions. For example, an interviewer might ask
the questions incorrectly or inadvertently lead the interviewee to a response; 2) calling at an
inconvenient time. For example, the respondent might not want to  be interrupted at the time of
the call and may resent the intrusion of the phone call. The answers will reflect this attitude.

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  using commercially
available  and government databases of private and  public schools.  The  survey will help
determine the number of schools adopting and implementing good IAQ practices by using EPA's
"Tools for Schools" kit (TfS). The survey is expected to be conducted in 2002 and results are
expected in later in the year.

Data Source: EPA-developed questionnaire
                                        IV-58

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QA/QC Procedures: Survey is designed, conducted, and analyzed in accordance with approved
Agency procedures.

Data Quality Review: EPA will review the data for completeness and quality of responses.

Data Limitations:  Subject  to  inherent limitations  of voluntary telephone  surveys  of
representative samples.
New/Improved Data or Systems: Prior to  the survey, EPA simply tracked the number of
schools receiving the kit and estimated the population of the school to determine the number of
students/staff experiencing improved indoor air quality. With this new survey, EPA is compiling
a database to better track the number of schools that have received TfS kits as well as have
adopted and implemented good IAQ practices. The database will be complete in late 2002.

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 health 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, Tribal,  and local government agencies, industry, non-
profit organizations, individuals as well as other Nations to promote more effective approaches
to identifying and solving indoor air quality problems. 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
       ETS;
••     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 USD A Extension Agents to conduct
       local projects designed to reduce risks from indoor air quality.

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

Radon Gas and Indoor Air Quality Research Act of Title IV of the Superfund Amendments and
Re-authorization Act (SARA) of 1986

Toxic Substances Control Act (TSCA), section 6, Titles  II, and Title III (15 U.S.C. 2605 and
2641-2671)

Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)

Clean Air Act (CAA)

Safe Drinking Water Act (SDWA)
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                           Environmental Protection Agency
           FY 2003 Annual Performance Plan and Congressional Justification

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

Objective: 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.  In 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)

Facilitate Prevention, Reduction and
Recycling of PBTs and Toxic Chemicals
Environmental Program & Management
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$41,723.8
$32,405.1
$9.318.7
183.3
FY 2002
Enacted
$48,755.4
$38,761.5
$9,993.9
197.0
FY 2003
Reguest '
$46,115.9
$36,122.0
$9,993.9
196.0
FY 2003 Req.
v. FY 2002 Ena.
($2,639.5)
($2,639.5)
$0.0
-1.0
                                    Key Program
                                (Dollars in Thousands)

ATSDR Superfund Support
Administrative Services
Congressionall^Mandated Projects
Design for the Environment
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
New Chemical Review
PBTI
Pollution Prevention Incentive Grants to States •
Pollution Prevention Program
RCRA State Grants
RCRA Waste Reduction
Regional Management
FY2001
Enacted
$0.0
$96.7
$7,283.7
$4.965.6
$0.0
$23.1
$77.4
$1,604.3
$2,455.1
$5,986.3
$10,066.4
$3,066.2
$11,689.0
$8.8
FY2002
Enacted
$654.3
$0.0
$1,700.0
$4,707.6
$2,725.9
$70.2
$478.6
$1,611.6
$2,572.5
$5,986.3
$9,597.8
$4,007.6
$14,633.7
$9-3
FY 2003
Request
$0.0
$0.0
$0.0
$4,810.7
$2,779.1
$197.8
$493.4
$1,606.4
$2,580.5
$5,986.3
$9.902.8
$4,007.6
$13.740.7
$10.6
FY 2003 Req.
v. FY 2002 Ena.
($654.3)
$0.0
($1,700.0)
$103.1
$53.2
$127.6
$14.8
($5.2)
$8.0
$0.0
$305.0
$0.0
($893.0)
$1.3
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FY 2003 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 and its
directive that  "pollution should be prevented or reduced at the source whenever feasible," P2
and source reduction became the Agency's  preferred approaches 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 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 2003 Key Program Activities    "

       In FY 2003, 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 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
                                          IV-62

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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.  The Agency  will develop Sustainable Business Franchises to provide corporations
with a  fully  developed, self-sustaining module for  the delivery of environmental technical
assistance.

       (b) Government Actions.  The Agency is invested in sharing information and supporting
State programs on Pollution Prevention. During FY 2003, State Program  Support will  include
management of the Pollution Prevention Incentives for States  (PPIS) grants (discussed  later in
this objective); 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 arid 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  2003,  EPA  will  expand
demonstration projects to include electronic products and partnership opportunities with  the
Department of Interior.   Program activities for FY 2002 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
potential risks to children from possible exposure to toxic chemicals.  During FY 2003,  the CLI
program will  work specifically with Federal and local governments,  States, and community
organizations  to  broaden its  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.
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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 promote innovation  and  develop  state capacity.   The  PPIS grants foster  the
development  of new P2  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.
                         FBT Program Connections

                                 /"' Sisdar- "N /'Com«iunity>\
                                {   BasscJ    V    B"se
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*      Developing cross-cutting action plans for PBT monitoring and risk communication;
•      Increasing the focus on regional/state implementation projects;
•      Emphasizing dioxin and continuing emphasis on mercury and PCBs; and
•      Reviewing the results from major measurement, monitoring and data collection efforts.

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 sectors 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  long-term 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.

       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.   DfE partnerships have 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,  automotive refinishing practices, printing processes, and in the
electronics industry.

       DfE has  completed comparative assessments on over 800 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
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 percent reduction in such quantities.

       DfE's partners in the flexographic ink,  electronics, and automotive refinishing industries
completed  the multi-year technical portion of the partnership project  during FY  2001 while
outreach activities continue  through  2002.  In 2003, DfE will investigate the feasibility of
technology transfer of DfE "lessons-learned" to additional  industries. For example, EPA will
work with  other industries that employ spray application practices and use chemicals similar to
those found in the collision repair industry.

       In 2003, EPA intends to continue with new DfE partnership activities launched in 2002 in
the marina and the electronics industries. The new DfE electronics industry partnership focuses
on  life cycle  impacts of  lead solder  and  its alternatives.   The continual partnership with the
electronics industry and the expansion to new areas of investigation is valued by both DfE and
the partners,  particularly for  this industry  which faces rapid and continuous change.  The DfE
                                          IV-65

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formulator initiative will also reach new industries in 2002 and 2003.  The formulator initiative
will be expanded beyond  the original industrial laundry sector partnership in 2001 to  include
cleaning products and fragrances. In 2002, DfE will begin to place greater emphasis on working
with the Regional and State P2 Programs to incorporate DfE strategies and goals into regional-
based projects.  The  DfE  Program will maintain a leadership role  but will serve more as a
technical  and communications guide to regional and state partners.   DfE  will  look to  the
Regional  and State P2 programs  to identify  critical areas of concern and  opportunities  for
integrating DfE concepts.   The DfE Program will promote the use of its approaches including,
substitutes assessment, life  cycle analysis, best management practices and EMS sector strategies.
The  DfE  program will pilot a stronger Regional program in FY 2002 through collaborative
projects with EPA Regions 6 and 9.

       The 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 to reduce risk to schoolchildren
from exposure to indoor air pollutants.  In 2002, EPA will fully implement the one-year pilot
grant program to test  Buy Clean in schools across the country.  In 2003, EPA will  finalize and
distribute the case studies from the pilot Buy Clean projects and recognize the accomplishments
of the schools which participated in the pilot.

       The pollution prevention approaches discussed above are intended to provide 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

       The Pollution Prevention Act not only established a national policy to  prevent or reduce
pollution  at  its  source, it also  provided an opportunity to expand beyond traditional EPA
programs  and devise creative new strategies  to protect human health and  the environment.
Green  chemistry, or the design of chemical products and processes that eliminate or reduce the
use or generation of hazardous substances, is a highly effective approach to pollution prevention
because it applies innovative and cost-effective scientific solutions to real-world environmental
problems, all through voluntary partnerships.

       The goal of the Green Chemistry Program is to promote the research,  development, and
implementation  of innovative  chemical technologies that eliminate  or  reduce hazardous
                                          IV-66

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 substances during the design, manufacture, and use of chemical products and processes.  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 partners include
 industry,  trade organizations, academia,  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 recent years, the program has made significant progress in
 several areas including 1) broad, competitive, non-target research efforts, 2) education activities,
 3) recognition efforts, and 4)  international initiatives.  In 2003,  the Green Chemistry Program
 will also be  focusing its outreach, awards, and  research efforts to target 1)  audiences not
 currently involved in green chemistry product and process design and 2) specific high priority
 chemicals, products, and/or processes for which safer 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) directs EPA  to  promote a
•reduction in  the  amount of waste  generated and to improve  recovery  and conservation of
 materials through recycling. The RCRA program  emphasizes a national policy  focusing on a
 hierarchy of waste management  options that advocates source reduction, reuse and recycling
 over treatment and disposal.  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 waste  reduction activities in this objective include:

 •              fostering partnerships with states;
 •              working with Tribes and local communities;
 •              carrying out plans to reduce  toxic chemicals in industrial hazardous  waste
               streams;
 •              defining techniques to reduce the generation  of municipal, hazardous and other
               solid waste through pollution prevention;
 •              and developing methods to  increase hazardous  and  municipal solid  waste
               recycling.
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       In the hazardous waste arena, the Agency complements its regulatory control program
with a strong emphasis on developing waste minimization partnerships with industry to reduce
the generation of wastes that are most harmful to human health and environment.  The RCRA
program will find ways to reduce the presence of chemicals of concern in waste by emphasizing
voluntary partnerships with states, industry and communities.

       In FY 2003, EPA will focus its efforts on the implementation stage of its program to
reduce hazardous wastes containing priority chemicals.  EPA will sponsor industry workshops,
encourage  increased  technical assistance and  information sharing, and publicly  recognize
industry leaders.   For example, EPA is exploring a partnership with the primary aluminum
industry to  work towards mutual goals of waste and energy reductions. Regional and state staffs
will encourage partners  and aid in identifying  waste  minimization goals and avenues for
achieving them cost-effectively.

       EPA will continue to respond to court decisions concerning its jurisdiction over recycling
secondary materials in FY 2003.  As part of this effort, the  Agency will be working toward
removing regulatory barriers to safe hazardous waste and  materials recycling and promoting
ways to improve and encourage recycling. This effort will consider both regulatory changes and
non-regulatory approaches.

       In FY 2003,  the Agency will investigate further opportunities to increase the rate of
hazardous waste recycling.  This exploration will include Regional and state collaboration to
clarify or revise existing policy related to recycling.  EPA will also work with industry to test
alternative  regulatory requirements that  promote  recycling, such  as revising the regulations
governing metal finishing sludges.  EPA expects state partners to implement projects through a
process  developed jointly  by  Environmental  Council  of States (ECOS) and  EPA,  as
demonstrated by the Region III  states' electronics recycling project. These projects are  likely to
focus on testing alternatives to current regulations that show  promise for increasing recycling
without compromising human health and the environment. EPA also expects to collaborate with
partners in various  regulated sectors,  such as, academic  research  institutions,  to revise
regulations and policies to encourage environmental stewardship and reduce hazardous waste
generation.

       In addition, the Agency remains committed to reducing regulatory burden. In FY 2003,
EPA plans to promulgate rule changes that will reduce the paperwork burden associated  with the
RCRA program and further streamline RCRA data collection.  Every two years, EPA and forty-
nine states and territories  must use the Biennial Reporting System (BRS) to interact with 20,000
entities for collection of basic information on waste generation and management, in accordance
with RCRA Section 3002.  BRS costs implementing agencies an  aggregate of $7.7 million, and
imposes 195,000 hours of burden and $10 million in cost annually on the regulated community.
Currently,  changes have been incorporated  to  facilitate electronic  data submissions and to
simplify the BRS forms.   In FY 2003, EPA  and its  state partners  will explore   the cost
effectiveness of alternatives to BRS, such  as integrating regulatory  requirements with firms'
existing operational and  financial  data systems, increasing reliance  on  data from the Toxics
Release Inventory, and conducting periodic surveys of the largest hazardous waste generators in
lieu of the entire BRS.
                                         IV-68

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            Figure ES-1: Waste Generation Rates From 1960 to 1999
      250 nr	r 10
      200

      150

      100
             *88.1
f^ 325
CQ 	 	 : . . . .
••DO
n '
1960 1970
3.66

1980 1990 19


99
                                  Total Waste Generation (Y1)
                                  Per Capita Generation (Y2)
       Waste reduction has clear benefits in combating the ever-growing stream of municipal
solid waste (MSW). Annual generation of MSW grew steadily from 88 million to 230 million
tons between 1960 and  1999.  MSW includes waste generated from residences, commercial
establishments, institutions, and industrial non-process operations. EPA's 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. This also includes 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 support of EPA's retail theme, the Agency plans to increase consumer and individual
awareness of environmental issues by initiating an environment retail effort  in FY 2003.
Although the focus is on the  "point of purchase", the  retail initiative will  target consumer
products such as compact disks (CDs), as well as company systems and industrial processes.  By
                                         IV-69

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focusing on a product, EPA can then direct the consumers' attention to product stewardship,
design,  materials use,  supply chains and encourage  reuse/remanufacturing/recycling when a
product has reached its useful life.  In FY 2003, the Agency will be well on the way in to
making  substantial  progress with  our  governmental  and  business  partners  in voluntary
negotiations to increase the recovery of end-of-life electronic products.  Participants in an EPA
supported  series of voluntary  discussions  involving  electronics manufacturers, recyclers,
retailers, states and local governments and non-governmental organizations will develop national
solutions for increasing the rate of electronic product recycling.  EPA will support pilot programs
that further the e-recycler initiative. In FY 2003, EPA will sponsor a series of regional pilot
projects to test and gather data on various approaches to collect used electronics, and will work
with manufacturers  in the design stage  to  improve the environmental performance of their
products.  In addition,  the Agency  will  aid the implementation  of new  national collection
initiatives, launched as  a result of prior  year product stewardship dialogs; document and
disseminate results from  the many electronics pilots currently underway; coordinate with many
international electronic initiatives; and spearhead more aggressive Federal green procurement
and contracting for electronics.

       There is a need to ensure that recovery is performed in a safe and environmentally sound
manner as electronic products become more routinely reused and recycled.  In FY 2002, EPA
worked with the Organization for Economic Cooperation and Development (OECD) to develop
draft guidance identifying safe practices for dismantling and recycling end-of-life electronics.
In FY 2003, the Agency will also continue efforts to develop and update guidance for safe,
effective recycling of these materials. Since many of the markets for used electronic materials
are international, EPA will continue to work with OECD on environmentally sound methods for
recycling used electronics.

       In FY 2003, the Agency will continue to partner with government agencies, Tribes, non-
profit organizations, business, and industry to advance toward the national goal  of 35  percent
municipal  solid  waste  recycling  by  FY 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 participate in voluntary programs  like WasteWise and engage in
discussions with business, industry, and government agencies, 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 FY 2003, WasteWise will emphasize new initiatives to encourage partners to consider
(1) innovative alternatives to traditional disposal contracting, such as "Resource Management,"
an approach pioneered by General Motors,  which strengthens economic incentives for waste
reduction and  resource efficiency while saving money, and  (2) "Green Building" approaches to
building construction and demolition, which reduce waste and boost recycling. Additionally, the
WasteWise program will seek additional 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
                                          IV-70

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with recycled content.  Regional  staff will recruit new partners and will provide technical
assistance to them.

       The  Waste Wise  Federal  sector focus  supplements EPA's  issuance  of additional
Comprehensive Procurement Guidelines (CPG), which establish guidelines for Federal and state
purchasing, that help improve the market for products made from materials recovered from the
solid waste  stream.  These efforts foster implementation of Executive Order  13101, which
requires Federal agencies to reduce waste, reuse materials and recycle.  Currently, the CPG lists
over 50 products,  such as industrial  drums, carpet  cushion and  park benches and soon
government agencies might find themselves purchasing recycled content office furniture, roofing
materials and  nylon carpet, among  other  items.  Continuing advancements  in technology
development will increase the number and quality of recycled content products in the CPG.

       One effort that has built momentum both internationally and  domestically is Extended
Product Responsibility (EPR).  By engaging in  discussion with product manufacturers, EPA
encourages them to evaluate the life cycle impacts of their product so that product design and
manufacturing can be modified to reduce impacts on the environment.  In FY 2003, 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 voluntary EPR discussions this past year.  For example, EPA, the carpet
industry's trade association, major manufacturers, as well as participating state and regional
governments  signed  a Memorandum of Understanding that  1) establishes a  dramatic new
national goal for  recovery of used carpets; 2) creates  a new industry-funded  organization to
support the  development  of  recycling  infrastructure,  and;  3)  provides for  government
procurement and market development initiatives to support this undertaking.   EPR is a broad-
reaching environmental principle that  will  complement environmental programs  across the
Agency.

       EPA will  work closely  with the  network of state  and Tribal  recycling and economic
development  officials  created through  our  Jobs Through Recycling  (JTR)  program.  This
program has  provided significant assistance to entrepreneurs creating or expanding recycling
businesses throughout the country.  During FY 2003, the JTR program will continue to help
quantify and communicate the employment and financial impacts of recycling businesses.

FY 2003 Change from the FY 2002 Enacted

EPM

       (-$2,950,00) The FY 2003 request is $2,950,00 below the FY 2002 Enacted budget level
       due to Congressional earmarks  received during  the appropriations process that are not
       part of the FY 2003 President's request.

Annual Performance Goals and Measures

Green Chemistry Challenge Awards
In 2003      Continue to stimulate development of new safe ("green") chemicals and safe chemical processes through public recognition for
          outstanding achievements in this field.
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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        The program received information on a total of 75 processes/products.

Performance Measures:                                         FY2001             FY2002            FY2003
                                                               Actual              Enacted            Request
Alternative feed stocks, processes, or safer products                           75                 I JO                160       Prod/proc (cum)
identified through Green Chemistry Challenge Award



Baseline:       Baseline is zero in FY 2000.
Toxic Release Inventory (TRI) Pollutants Released

In 2003        The quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or combusted for energy recovery in
               2003, (normalized for changes in industrial production) will be reduced by 200 million pounds, or 2%, from 2002. This data will
               be reported in 2005.

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        No conclusions can be drawn regarding changes in TRI Non-recycled wastes from calendar year 2000 to calendar year 2001
               without data.

Performance Measures:                                          FY2001             FY2002            FY2003
                                                               Actual              Enacted            Request
Reduction of TRI non-recycled waste (normalized)                  not available         200 Million         200 Million      Ibs



Baseline:       This APG measures changes in TRI Non-Recycled Wastes. TRI data are reported to EPA by facilities by July 02, and compiled
               and reported publically by EPA in Spring 03.  EPA will do an analysis to determine a new target.


Managing PBT Chemicals

In 2003        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 2002        Initiate further actions pursuant to PBT Strategy and Level 1 PBT National Action Plans including a plan to address unique
               environmental health threats to Tribes and special populations.

In 2001        15 new PBT prevention / reduction projects initiated through regional offices in 2001.  The list of additional priority PBTs was
               not published.

Performance Measures:                                          FY2001  _           FY2002            FY 2003
                                                               Actual   "           Enacted            Request
Number of prevention and reduction Regional projects                        25                  35                 45      Grants (Cum)
initiated.

Publish final list of additional priority PBTs.                                  0                                              List

Hospital Mercury Project                                                                    200                100      Participants

Number of New Multiple-PBT Strategies Completed                                               2                          Strategies

Tribal PBT Actions                                                                                              4      Grants
Baseline:       Level 11 chemicals: For PBT risk reduction projects, the baseline is zero projects in FY 1999. Final List of Priority PBTs: The
               baseline for hospital mercury project is under development. The baseline for number of new multiple-PBT strategies completed
             •  is zero in 2001.                                                                     -
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Safer Alternative Cleaning Technologies

In 2003        Expand the use of cleaner technologies in priority industries, including reduction in the use of pcrchloroethylene from 1997
               levels.

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 2002        Expand the use of cleaner technologies in priority industries.

In 2001        EPA continued to work with industry on reducing the use of the highly toxic chemical perchloroethylene in the dry cleaning
               industry.

In 2001        The market share for cleaner inks is 6 percent. The market share for cleaner adhesives increased to 65%. In FY20.01, EPA
               established partnerships with 8 detergent formulation industry entities, including 15 formulations.

Performance Measures:                                         FY2001             FY2002            FY2003
                                                               Actual              Enacted             Request
For inks, track size of flexographic ink industry and market                    6%          15% (cum)           15% (cum)       Market share
share ($ and Ibs) of cleaner inks.

For adhesives, track size of cleaner adhesive industry market                 65%          70% (cum)           70% (cum)       Market Share
share.

For eco-friendly detergents, track the number of laundry                       18                  12                   12       Partners (cum)
detergent formulator industry partners.

Perchloroethylene reduction                                      not available                38%                 40%       Use Reduct cum

Regional project to expand the use of cleaner technologies                                         15                 20%       Projects (cum)



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.

Eco-friendly detergents baseline  is .1997: 0 partners and 0 detergents. The adhesives baseline is 1997 which reflects the beginning of tracking
               market share — the measure is the increase in market share from the baseline. Baseline for flexographic inks measure is 1998
               which reflects the beginning of tracking market share.

Reducing PBTs in Hazardous Waste Streams

In 2003        Reduce waste minimization priority list chemicals in hazardous waste streams by 43% to 86 million pounds by expanding the
               use of  state and industry partnerships and Regional pilots

In 2002        Reduce waste minimization priority list chemicals in hazardous waste streams by 40% to 91 millfon pounds by expanding the
               use of state and  industry partnerships and Regional pilots.

In 2001        A draft trends report that shows changes from 1991 to 2000 was prepared in FY 2001 and is currently undergoing
               intergovernmental review.

Performance Measures:                                         FY.2001             FY 2002            FY 2003
                                                               Actual              Enacted             Request
Prepare a trends report that shows Toxic Release Inventory                      1                                              report
changes from 1991 to 1998.

Reduction in generation of priority list chemicals from 1991                                        40                   43       percent
levels.



Baseline:       1991 Toxic Release Inventory data will be used to determine reductions.


Municipal Solid Waste Source  Reduction

In 2003        Divert  an additional 1% (for a cumulative total of 32% or 74 million tons) of municipal solid waste from land filling and
               combustion, and maintain per capita generation of RCRA municipal solid waste at 4.5 pounds per day.

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 4.5 pounds per day.
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In 2001      FY 2001 data is not available for the diversion of municipal solid waste from land filling and combustion or maintaining per
          capita generation of RCRA municipal solid waste. Analysis of FY 2001 data is anticipated by September 2003.
Performance Measures:                             FY2001        FY2002        FY2003
                                            Actual         Enacted        Request
Millions of tons of municipal solid waste diverted.             not available            69            74    million tons
Daily per capita generation of municipal solid waste.           not available            4.5            4.5    Ibs. MSW

Baseline:    1990 levels established at 17% of MSW diverted and 4.3 pounds MSW per capita daily generation.


Verification and Validation of Performance Measures

Performance Measure: The quantity of Toxic Release Inventory (TRI) pollutants released,
disposed of, treated or combusted for energy recovery in 2003, (normalized for changes in
industrial production) will be reduced by 200 million pounds, or 2%, from 2002. This data
will be reported in 2005.

Performance Database: TRIM: Toxics Release Inventory  Modernization,  formerly TRIS
(Toxics 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: Regulated facilities report facility-specific, chemical-specific  release reports and
recycling  data to EPA. For example, in calendar year 1999, 22,639  facilities filed  84,068 TRI
reports.

QA/QC Procedures:  Most  facilities use  EPA certified automated  Toxics Release Inventory
(TRI) FORM R reporting tools, which contains automated error  checking mechanisms. Upon
receipt of facility reports, EPA conducts automated edits, error checks, data scrubs, corrections
and normalization during data entry  and subsequent processing to verify that the  information
provided by the facilities is correctly entered in TRIM. The Agency does not control the quality
of the data submitted by the regulated community.  EPA does, however, work with the regulated
community to improve the quality of their estimates.

Data  Quality Review:   The  quality of  the  data contained  in  the TRI chemical reports is
dependent upon the quality of the data that the reporting facility uses to estimate its releases and
other  waste  management quantities. GAO Report, Environmental  Protection: EPA  Should
Strengthen Its  Efforts to Measure and  Encourage Pollution  Prevention (GAO - 01  -  283),
recommends that EPA improve its rule on reporting of toxic  releases to improve reporting on
source reduction activities.   Although EPA  agrees that source reduction data is valuable,  the
Agency has not finalized regulations to improve reporting of source reduction activities by TRI-
regulated facilities.

Data  Limitations:  Use of the data should  be based on the user's understanding that the Agency
does not  have  direct assurance of the accuracy  of  the  facilities' measurement and reporting
processes. TRI release data are reported by facilities  on a good faith, best estimate basis.  EPA
does not have the resources to conduct on-site validation of each facility's reporting data, though
on-site investigations do occur each year at a subset of reporting facilities.
                                           IV-74

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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
municipal solid waste generation.

Performance Database: Data is provided by the Department of Commerce.  EPA does not
maintain a database for this information.

Data Source:  The baseline numbers for municipal solid waste source reduction and recycling
are developed using a materials flow methodology employing data largely from the Department
of Commerce and described in the EPA report titled "Characterization of Municipal Solid Waste
in the United States."  The  Department of Commerce collects solid waste generation and
recycling rate data from various industries.

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.

New/Improved Data or Systems: Because 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

       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 Preferable Product initiative, which implements Executive Orders 12873 and
13101, is promoting the use of cleaner  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
                                        IV-75

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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
municipal solid waste projects. For instance, rather than dispose of returned or unwanted mail,
EPA and the USPS developed and implemented  successful recycling procedures and markets,
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

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)
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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-77

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                          Environmental Protection Agency
           FY 2003 Annual Performance Plan and Congressional Justification

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

Objective: Assess Conditions in Indian Country

      By 2005, EPA will assist all federally recognized tribes in assessing the condition of their
environment,  help in  building  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)

Assess Conditions in Indian Country
Environmental Program & Management
State and Tribal Assistance Grants
Total Workyears
FY2001
Actuals
$66,653.2
$11,372.3
$55,280.9
85.6
FY 2002
Enacted
$65,436.6
$12,966.9
.$52,469.7
90.8
FY 2003
Request
$70,909.4
$13,439.7
$57,469.7
90.7
FY 2003 Req.
v. FY 2002 Ena.
$5,472.8
$472.8
.$5,000.0
-0.1
                                    Key Program
                                (Dollars in Thousands)

Administrative Services
American Indian Environmental Office
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
Regional Management
Tribal General Assistance Grants
FY 2001
Enacted
$47.4
$10,014.8
$0.0
$1,370.1
$401.8
$53.9
$52,469.7
FY 2002
Enacted
$0.0
$9.911.6
$1,165.4
$1,383.0
$426.9
$80.0
$52,469.7
FY 2003
Request
$0.0
$10,219.7
$1,250.3
$1,428.7
$475.5
$65.5
$57.469.7
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$308.1
$84.9
$45.7
$48.6
($14.5)
$5.000.0
 FY 2003 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
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assistance, assure effective communication with Tribes, allow flexibility in grant programs, and
provide resources for Tribal operations,

       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 continues to be a major focus  for the Agency and Tribes.  These
baseline  assessments  will  provide a blueprint for planning future activities through the
development of Tribal/EPA Environmental Agreements (TEAs) or similar Tribal environmental
plans to address and support priority environmental multi-media concerns in Indian country.

       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 2003,  EPA is
requesting  $57.5 million toward the Indian General Assistance Program goal of establishing a
minimal environmental presence for all Federally recognized Tribes and intertribal consortia.
These resources  will allow most Tribes to support at least one of two persons working in their
community to build a strong, sustainable environment for the future. Approximately 400 or 70%
of the federally recognized tribes are funded with GAP funds; these additional funds will allow
approximately 45 additional Tribes to establish an environmental presence.   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 the 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 involving 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-governrnent  relationship with Tribes and that "EPA recognizes Tribes as the
primary parties  for setting standards, making  environmental policy  decisions and managing
programs for reservations, consistent with agency standards and regulations." To that end, EPA
"encourage[s]  and assist[s]   Tribes  in  assuming  regulatory  and  program  management
responsibilities," primarily through its Treatment in the Same Manner as a State (TAS) process
under several environmental statutes.

       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 acute 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 federal
programs in Indian country.  EPA will continue to encourage and work with Tribes to develop
their capability to implement Federal environmental programs.
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       In accordance with EPA's longstanding policy, EPA is considering 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 again proposing language for inclusion in the
President's  budget  that  would  allow EPA to award  cooperative  agreements  to federally
recognized  Indian Tribes or  qualified  Intertribal consortia to assist  the Administrator  in
implementing federal environmental programs for Indian 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.  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 EPA 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.  In the near  future EPA plans  to explore ways to provide Tribes with
incentives to develop their capacity to implement Federal environmental programs.

FY 2003 Change from FY 2002

STAG

•      (+$5,000,000) This increase in  Indian General Assistance Program grants supports the
       Indian General Assistance Program goal of establishing a minimum environmental
       presence for all Federally recognized Tribes and inter-tribal consortia which will help to
       improve the targeting of other EPA assistance.

Annual Performance Goals and Measures

Tribal Environmental Baseline/Environmental Priori
In 2003      In 2003, AIEO will evaluate non-Federal sources of environmental data pertaining to conditions in Indian Country to enrich the
           Tribal Baseline Assessment Project.
In 2002      Baseline environmental information will  be collected for 38% of Tribes (covering 50% of Indian Country).
In 2001      Baseline environmental assessments were collected for 207 Tribes.
Performance Measures:'                             FY2001         FY2002      " FY;2003
                                             Actual         Enacted         Request
Environmental assessments for Tribes, (cumulative)                  207            286                   Tribes, etc.
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Performance Measures:                             FY2001        FY2002         FY2003
                                           Actual         Enacted         Request
Non-federal sources of environmental data pertaining to                                           20    Data sources
conditions in Indian Country.

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: Non-federal sources of environment data pertaining to conditions
                           in Indian Country

Performance  Database:     The  American  Indian  Environmental  Office  (AIEO)  Tribal
Information Management  System  (TIMS)  is  used to  access  Baseline  Assessment Project
environmental information on federally  recognized Indian Tribes.   TIMS  draws together
environmental information on Tribes from existing EPA databases, such as those from media
program offices, EPA  Regions, as well as databases from other federal agencies. The data is
accessible and can be queried by Tribe, by state, by EPA Region, or nationally.  Information can
be displayed in several manners including graphically on an electronic map of tribal reservation
boundaries.   TIMS also contains a narrative  profile  description  by Tribe of environmental
information and management activities.

Data  Source.  Current  TIMS' data sources are  existing federal databases, both from EPA and
other agencies, supplemented by data sources collected from the EPA regions as appropriate. All
data sources are identified and referenced in the TIMS  application.  In FY 2003, AIEO will
analyze data from 20 non-federal data sources  for enrichment the  Tribal Baseline Assessment
Project.  Those  data  sources found to  have  an enrichment  benefit  by   supplementing,
complementing, or adding value to the federal data sources will be integrated into TIMS.
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 is subject to the underlying
existing database systems referenced.

Coordination with Other Agencies

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
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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.

Other Examples of Interagency Coordination

       EPA and the Department of Interior are coordinating an Interagency Tribal Information
Steering  Committee which includes the  Bureau of Reclamation, Department of  Energy,
Department of Housing and Urban Development, U.S. Geological  Survey, Federal Geographic
Data Committee, Bureau of Indian Affairs, Indian  Health Service, Department of the Treasury,
and Department of Justice.  This Interagency  effort is aimed  to  coordinate the exchange of
selected sets  of environmental, resource, and programmatic information pertaining to Indian
country among federal agencies in a "dynamic"  information management  system that is
continuously and automatically updated and refreshed, to be shared equally among partners and
other constituents.

       Under  a two-  party Interagency agreement, EPA  works extensively with the Indian
Health Service to cooperatively address the drinking water  and wastewater infrastructure needs
of Indian Tribes.

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
2003 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-l5
        Regulate Facilities to Prevent Releases	V-61

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                           Environmental Protection Agency

           FY 2003 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)

Better Waste Management,
Restoration of Contaminated Waste
Sites, and Emergency Response
Control Risks from Contaminated Sites
and Respond to Emergencies
Regulate Facilities to Prevent Releases
Total Workyears
FY2001
Actuals
$1,685,622.1
$1,524,914.9
$160,707.2
4,316.4
FY 2002
Enacted
$1,562,983.8
$1,397,140.9
$165,842.9
4,388.5
FY 2003
Request
$1,711,279.8
$1,544,018.6
$167,261.2
4,498.7
FY 2003 Req.
v. FY 2002 Ena.
$148,296.0
$146,877.7
$1,418.3
110.2
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, vegetation, and natural resources from unacceptable risk
posed by solid and hazardous wastes. In FY 2003, 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.

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
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hazardous and solid wastes.

       To achieve this goal, EPA seeks to further 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.

       In FY 2003, EPA will focus on four overarching themes in achieving its objectives:

•      Homeland Security: Enhancing EPA's accident prevention, emergency preparedness, and
       emergency  response programs  to ensure the  safety and health of the  public, program
       personnel, and other emergency response personnel.  The Agency will then be able to
       provide appropriate and timely crisis and consequence management related to weapons of
       mass destruction.

•      Revitalization:  Broad promotion of the successes and lessons learned by the brownfields
       program and other waste program revitalization  efforts,  and how revitalization can
       complement our traditional cleanup programs and lead to faster cleanups and productive
       reuse of properties.

*      One Cleanup Program: Creating a national dialogue on the future of Superfund and other
       waste/cleanup programs.  Continue  progress in cleanups while increasing consistency and
       transparency across programs.

*      Recycling, Waste Minimization and Energy  Recovery^  Promotion of recycling, waste
       minimization and energy recovery for both hazardous and non-hazardous wastes.

Homeland Security

       In support of Homeland Security, the Agency is requesting $86 million  to strengthen the
Agency's preparedness,  response  structure and improve state and local emergency response
capabilities, continue operations of the Environmental Response Team Center West (ERTC-West),
and research decontamination of buildings resulting from a release of biological  agents.
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       Through  the ERTC-West, the Superfund  Program will maintain an around-the-clock
emergency response activation system to support  regions and states in the western part of the
country. The ERT provides critical technical support services to EPA's response personnel in the
field. These services include: environmental monitoring, decontamination, technical assistance on
hazardous arid radiation emergencies, and support to FBI-led response teams.  The ERT also offers
technical training to Federal, State, and local government officials in the latest response technology.

       EPA plays a vital role in helping to protect the American people from hazardous substances
releases as well as the highly dangerous agents (chemical, biological, radiological) associated with
acts of terrorism.  Any major terrorism event,, whether it involves explosives, conventional
hazardous materials or radiological, chemical or biological agents, will necessitate an EPA response
to, first,  assess the risks to public health, the environment and to response workers, second, to
manage and mitigate the hazards of residual contamination, and, third, to conduct assessments of the
adequacy of the  response sufficient to allay the concerns of the public who will re-occupy the
affected area.  Currently, EPA's capability to conduct such responses resides in our Emergency
Response program.

       The  Agency's  chemical emergency  preparedness  and  prevention (CEPP)  program
complements EPA's emergency response efforts. This program addresses the risks associated with
the manufacture, transportation, storage and use of hazardous chemicals to prevent and mitigate
chemical releases whether an incident may be accidental or intentional, as is the case in releases
caused by terrorist acts. To meet its homeland security obligations the CEPP program works with
state agencies and Local Emergency Planning Committees  (LEPCs) to help strengthen their
capabilities to prepare for and respond to potential incidents of terrorism. The LEPC.is a community
organization that brings together all entities (first responders, fire departments, hospitals, emergency
technicians, planners,  industry, the media,  and local  elected  officials) that  have primary
responsibility for emergency preparedness at the local level. The program also works in partnership
with the chemical and petrochemical  industry to improve site security and the safe operations of
facilities throughout the country.

       Within the National Response System, EPA supports a national emergency preparedness and
response capability. Under the National Response Team (NRT), Regional Response Team (RRT)
and Federal Response Plan (FRP) the Federal government helps states  and local  governments
addressmajor incidents that are beyond their capabilities, including those involving terrorism. 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 material releases including
chemical, biological and radiological substances. The Agency also participates with other Federal
agencies to implement national security, continuity of operations and other homeland security
requirements.

       The FY  2003  President's Budget requests resources to conduct research on better
technologies and assessments to cleanup buildings contaminated by biological and chemical agents.
These efforts will include the transfer of technologies and guidance on decontamination processes,
evaluation of existing and new cleanup and detection technologies, development of risk assessment
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methodologies, and production of rapid decontamination techniques and technologies.

Revitalization

       To address the theme of revitalization, EPA is requesting $200,000,000 to implement the
Small Business Liability Relief and Brownfields Revitalization and Environmental Restoration Act
(H.R. 2869), signed by President Bush on January 11,2002. Brownfields are abandoned, idled, or
underused industrial and commercial properties and are not traditional Superfund sites. Generally,
Brownfields are  not highly contaminated and, therefore, present lesser health risks.  Economic
changes over several decades have left thousands" of communities with these contaminated properties
and abandoned sites.  This legislation promotes brownfields redevelopment by providing financial
assistance for assessment and cleanup, reforming Superfund liability and enhancing state response
programs. The legislation was the top environmental priority of the Administration and EPA will be
working with Congress, other Federal agencies, states, tribes, local governments, the private sector
and non-profit organizations on its implementation. In addition to the activities which have been
carried out in the past, the new legislation will expand EPA's ability to address sites contaminated
with petroleum and permit EPA to establish grants for brownfields cleanup.

       EPA is committed to integrating the concept of revitalization and reuse into the process of
cleaning up abandoned, inactive and contaminated waste sites, active and closing Federal facilities,
and other properties- An essential element of the assessment and cleanup of contaminated property,
whether they are Brownfields, Superfund, RCRA Corrective Action, Base Realignment and Closure,
Federal facilities or USTs, is the ultimate goal of revitalizing and reusing that property. Although
assessment and cleanup provide clear environmental benefits in mitigating exposure to hazardous
contaminants, the ultimate goal is the reuse of these properties to improve  the quality of life in
America's communities. Building upon the Agency's recent successes in this area, EPA's waste
cleanup programs  will actively seek out opportunities to leverage public or private investment,
create jobs associated with reuse, and increase the overall acreage reused.

One Cleanup Program

       In support of the one cleanup program theme, the Superfund program 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 nearby communities. Many of the nations  largest and
most technically complex contaminated properties including  abandoned,  private, and Federal
facilities are cleaned up by the Superfund Program. 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. When a site  is placed  on  the NPL it
becomes eligible for a fund-financed cleanup.  The Agency also provides outreach and education to
the surrounding communities to  improve their understanding of potential site risk, such as risks
posed by radioactive materials, and to promote direct involvement in every  phase  of the cleanup
process.

       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
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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.

       The RCRA corrective action program addresses a significant number of industrial sites,
including Federally-owned facilities.  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 because
people or the environment are likely to be at significant current or future risk. As evidence of
success in meeting this challenge, EPA and the states have now documented that both exposure to
contamination and further migration of contaminated groundwater have been controlled at over 600
of the 1700 high priority facilities.

       The RCRA corrective action program  continues to emphasize redevelopment of RCRA
corrective action sites to prevent these properties from becoming Brownfields (unused or underused
property due to perceived concerns regarding hazardous waste contamination).  Through its nine
active pilots, the RCRA Brownfields Prevention Pilot program showcases the implementation of the
RCRA corrective action reforms and the use of innovative approaches to cleanup activities. In
addition, the RCRA program also sponsors a Targeted Site Effort (TSE) to focus a small amount of
funds at specific sites to give assistance in moving forward in the corrective action process.

       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 approximately 700,000 active USTs have the proper
equipment per Federal regulation, significant .work remains to be done 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 are  a  national priority.  This encompasses compliance  for all
Federally-regulated UST systems, including those on private and public property, in Indian Country,
and Federal facilities. The Agency has primary responsibility for implementing the UST program in
Indian Country.

       The Leaking Underground Storage Tank (LUST)  Program will continue its progress by
promoting rapid and effective responses to releases from USTs containing petroleum. EPA plays a
key role in implementing the national LUST Program by supporting the management of state, local,
and tribal enforcement and response capability, as well  as, sharing lessons learned with state
regulators and the regulated community to increase cleanup accomplishments. The Agency's highest
priorities in the LUST program over the next several years is to address approximately 150,000
cleanups that have yet  to be completed, and to  address methyl-tertiary-butyl-ether  (MTBE)
contamination which states are increasingly discovering, and which pose unique and often difficult
remediation challenges.
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Recycling. Waste Minimization, andLEnergy .Recovery

       In support of the recycling, waste minimization and energy recovery theme, the RCRA
program will focus on improving current waste management practices, providing greater regulatory
flexibility arid promoting opportunities for converting  waste to future energy and raw material
sources.  In FY 2003, EPA will undertake a comprehensive review of its waste management
programs and  regulations  regarding  hazardous and  non-hazardous waste recycling, waste
minimization and energy recovery practices. The review objective will be to identify opportunities
to further the goal of resource conservation and recovery, while remaining true to the mission of
ensuring safe and protective waste management practices.

       Other elements of the Better Waste Management goal are associated with the promotion of
safe waste management practices, which serve to avoid future cleanup and redevelopment burdens.
For facilities that currently manage hazardous wastes, EPA and the authorized states ensure human
health and environmental protection through the issuance of RCRA hazardous waste permits. The
RCRA program works primarily through state partners to reduce the risks of exposures to dangerous
hazardous wastes by maintaining a  "cradle-to-grave" waste management framework.  Under this
framework, EPA and the states oversee 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, 48 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. The RCRA program strives to achieve greater
efficiencies by adapting new innovative technologies that not only streamline permitting processes
and better protect our  land but also provide greater regulatory flexibility and opportunity for
converting waste to future energy and raw material sources.

       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, whether an incident may be accidental or intentional, as is
the case in a terrorist event.  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, responds to, and  monitors oil spills as
mandated and authorized in the Clean Water Act and Oil Pollution Act of 1990. EPA protects U.S.
waterways through  oil spill prevention,  preparedness, and enforcement compliance. There are
465,000 non-transportation-related oil storage facilities that EPA regulates-. When necessary, the
Agency undertakes oil spill response in the inland zone which is then funded through a reimbursable
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agreement with the U.S. Coast Guard.

       Finally, The Agency has established performance objectives specific to Indian Tribes and
Alaska Native Villages.  These objectives stress waste prevention and cleanup and assistance to
Tribes. To meet these objectives,  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.

Research

       The FY 2003 waste 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 CERCLA.  Research will: 1)
provide improved methods and dose-response models for estimating risks from complex mixtures
contaminating soils and groundwater; 2) provide unproved methods for measuring, monitoring, and
characterizing complex waste  sites in terms of soils and groundwater; 3) develop more reliable
technologies for cleanup of contaminated soils, groundwater, and sediments; and 4) determine the
effects of contaminants on the environment.  A new effort in Homeland Security will also begin in
FY 2003 and focus on critical issues, such as the decontamination of buildings, in order to prevent
and respond to future instances of bioterrorism.

       Waste identification, waste management, and combustion constitute the three major areas of
research under RCRA in F Y 2003, 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 transporti_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 de-listing process.  These efforts could
significantly reduce compliance costs while still supporting EPA's mission 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 emissions from
waste combustion.

Strategic Objectives and FY 2003 Annual Performance Goals

Control Risks from Contaminated Sites and Respond to Emergencies

•      EPA and its partners will complete 22,500 Leaking Underground Storage Tank (LUST)
       cleanups for a cumulative total of approximately 313,300 cleanups since 1987.

•      EPA and its partners will complete 40 Superfund cleanups (construction completions).

*      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
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       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 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.

•      257 (for a cumulative total of 1,252 or 73%) of high priority RCRA facilities will have
       human exposures controlled and 172 (for a cumulative total of 1,054 or 61%) of high
       priority RCRA facilities  will have groundwater releases controlled.

•      To ensure cost-effective  and technically sound site clean-up, deliver state-of-the are
       guidance and methods to EPA and stakeholders for risk management of fuel oxygenates;
       organic and inorganic contamination of sediments, ground water and/or soils; and oil
       spills.

•      EPA will provide additional site assessment funding to 74 new sites, and to 52 existing
       sites, resulting in a cumulative total of 3,350 properties assessed, the generation of
       21,300 jobs, and the leveraging of $5.0 billion in cleanup and redevelopment funds since
       1995.

Regulate Facilities to Prevent Releases

•      EPA and its  state and tribal partners will ensure that 80% of UST facilities will be in
       significant operational compliance with leak detection requirements, and 85% of UST
       facilities will be in significant operational compliance with spill, overfill and corrosion
       protection regulations.

•      77.2 of the hazardous waste management facilities will have approved controls in place
       to prevent dangerous releases to air, soil, and groundwater. This represents an additional
       39 facilities meeting the  goal this year.

•      Certify that 8,000 55 gallon drums of radioactive waste (containing approximately 24,000
       curies) shipped by DOE  to the Waste Isolation Pilot Plant are permanently disposed of
       safely and according to EPA standards.

Highlights

       In FY 2003, 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 804 Superfund National Priorities List Sites through September 30,2001;

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•      conducted over 6,500 Superfund removal response actions from 1982 through September 30,
       2001;
•      assessed over 43,700 potential Superfund sites;
•      removed  more than 32,700 sites from the Comprehensive Environmental Response,
       Compensation and Liability Information System (CERCLIS) waste site list;
•      secured greater than $20 billion in PRP commitments, through response and cost recovery
       settlements, over the life of the Superfund program;
•      resolved potential liability of 24,700 small volume waste contributing parties through more
       than 475 de minimis settlements;.
•      responded to or monitored 300 oil spills in a typical year;
*      awarded 399 Brownfields assessment pilots, over 129 brownfields cleanup revolving loan
       fund pilots, and 48 job training pilots through September 1, 2001;
*      Over 600 of approximately 1,700 high priority RCRA sites targeted  for aggressive risk
    •   reduction have met GPRA Environmental Indicator goals;
•      74% of approximately 2,750 hazardous waste management facilities have effective controls
       in place;
•      Launched a RCRA Brownfields Prevention Pilot program with nine active pilots;
*      Cleaned approximately 259,000 leaking underground storage tanks since 1987.

       In FY 2003, EPA's goal is to complete construction at 40 private and Federal Superfund sites
and take action to address contamination at 275 sites using removal authorities. In addition, EPA
and its partners will make final site assessment decisions on 475 additional sites. The Superfund
enforcement program's goal will  be to 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 FY 2003, the Superfund redevelopment initiative will facilitate the return of additional
Superfund sites to productive reuse. The Agency has compiled a list of over 260 Superfund sites that
have been recycled. At these sites, more than 60,000 acres are now in ecological or recreational use.
Approximately 15,500 jobs, representing approximately $500 million in annual income, are located
at sites that have been recycled for commercial use.

       In FY 2003, the Agency will improve its'Homeland Security preparedness and response
capability, workforce safety, and coordination with our Federal and local partners. This will support
national efforts to combat terrorist threats including biological, chemical and radiological attacks on
populations in the United States. The Agency will implement a $10 million initiative to establish a
viable Homeland Security program at EPA that will reduce the risk to the public, better protect our
emergency responders, and prevent environmental harm. This initiative will support the National
Homeland Security strategy developed by the Office of Homeland Security  and the White House
that assigns EPA a critical role in preparing for  and responding to terrorist  incidents.  This
responsibility is based upon EPA's unique expertise and experience in emergency preparedness and
response to hazardous material releases.

       The Agency's Homeland Security efforts will concentrate on: (1) developing a multi-skilled
workforce and providing them with advanced training; (2) implementing an EPA-wide event
planning/response program that can fully participate in national inter-agency exercises; (3) providing
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state-of-the-art response equipment (e.g., personal protection, field analysis, decontamination) and
the resources to maintain the equipment; and (4) enhancing planning, coordination, and outreach
efforts at the local, state, and Federal levels.

       Reducing  chemical accidents  is vital to ensure that  communities are not exposed to
hazardous materials.  The Agency will continue its efforts to help states and local emergency
planning committees implement the risk management plan (RMP) program. EPA continues to make
steady progress in this area and, in FY 2003, will delegate the program to eight additional states for a
cumulative total of twenty-five. 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.

       Through the Federal Oil Spill Program, EPA will continue to prevent, respond to, and
monitor oil spills that occur in the waters of the United States and adjoining shorelines.  Over 24,000
spills are reported annually while approximately half are in the inland zone which is under EPA's
jurisdiction.   EPA typically responds to and monitors the work  of responsible parties at
approximately 300 significant 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 and monitor spills when necessary.
                           0
       The  EPA Brownfields program coordinates a Federal,  state, tribal, and local government
approach to assist in addressing environmental site assessment and cleanup.  This program has
experienced tremendous growth in applications for new and supplemental pilots, averaging 198
applications per year. The passage of Brownfields authorizing legislation in December 2001 allows
an expanded program to address environmental and economic challenges presented at brownfields
sites including:

      •    grants to address petroleum contaminated sites                .  .
      •    grants for clean up activities
      •    expanded resources for state and tribal programs
      •    Tribal program funds for monitoring public health
      •    responding to mine scarred lands, contaminative, and controlled substances

      In FY 2003, the Brownfields program will provide $29 million in funding and  technical
support for  74 new assessments and 52 existing assessments.  These assessments provide states
(including  U,S. territories), political  subdivisions (including  cities, towns, and counties), and
Federally recognized Tribes with necessary tools, information, and strategies for promoting a unified
approach to environmental site assessment, characterization, and redevelopment.  Benefits derived
from this effort will include leveraging a total of $5 billion in  cleanup and redevelopment funds,
generation of 21,300 jobs, and assessment of 3,350 sites through FY 2003. In addition, the Agency
and its Federal partners will continue to support the existing 28 showcase communities which serve
as models to demonstrate the benefits of interagency cooperative efforts in addressing environmental
and economic issues related to brownfields. The showcase communities capitalize on a multi-
agency partnership designed to provide a wide range of support depending on the particular needs of
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each community.

     As part of this initiative, EPA will use approximately $30 million to address the regulatory gap
that prohibits EPA funds from addressing the estimated 200,000 abandoned underground storage
tanks (USTs) and other petroleum contamination found on brownfields properties. With these funds,
EPA will  support  assessment  and  cleanup  of petroleum  contaminates  in  50 brownfields
communities.

     To further enhance a community's capacity to respond to brownfields redevelopment, the
Agency will also provide funding for 33 communities to capitalize brownfields cleanup revolving
loan funds (BCRLF) with the requested increase. All communities with brownfields properties are
eligible to apply.  For the first time,_Brownfields legislation authorizes funding for cleanup grants.
It is estimated that cleanup funding might be available for up to 25 sites*

     The Agency will also provide $50 million for states and Indian tribes to establish or enhance
their response programs. The new legislation will also permit the recipients to capitalize revolving
loan funds, purchase insurance or develop a risk sharing pool, an indemnity pool, or an insurance
mechanism to provide financing for response actions under a state response program.

     To augment-the communities'  capacities to clean up brownfields  sites, EPA will fund 10
additional job training pilots for community residents and will provide $3 million to the National
Institute of Environmental Health Sciences (NIEHS) 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 FY 2003,257 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 reforms successfully
established an environment for  program implementers to be innovative and results-oriented by
promoting faster, focused, more flexible cleanups. The Agency 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.

     In FY 2003, the RCRA hazardous waste permits program will have permits or other approved
controls in place for 77%_pf the hazardous waste management facilities (out of a baseline of
approximately 2,750 facilities).  Securing approved controls  in place at facilities minimizes 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. In addition,
the program is planning an e-permitting initiative which would complement the new standardized
permit process. This initiative will expedite and simplify the permitting process and provide better
public  access to permitting information.

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     The Agency has several efforts underway to improve waste management practices throughout
the RCRA program to better reflect actual levels of risk. The hazardous waste identification rule and
follow-up efforts seek to exclude lower risk wastes from hazardous waste regulation. In FY 2003,
the Agency will continue to  develop exemptions for specific low-concern wastes as well  as
concentration-based exemption levels for constituents occurring in hazardous wastes.

     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. In 2000, the
Agency initiated work on Phase II MACT standards for hazardous  waste burning boilers and
halogen acid furnaces. However, in 2001 the D.C. Circuit Court of Appeals vacated the Phase I
MACT standards. In 2002 and FY 2003, EPA will work to revise the combustion standards and
address the court's action.

     In FY 2003, the Agency will work with states, industry, and community representatives to
begin implementation of the voluntary guidelines for industrial non-hazardous waste management.
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 worked with states to review the national standards. The Agency is
currently initiating regulatory  revisions to provide additional flexibility so that compliance is less
costly  and  easier to  achieve.   Regulatory revisions will provide an  opportunity for bioreactor
technology, to pave the way for future new energy and raw material sources.

     The Agency will accelerate the pace of LUST cleanups through additional support to the states
to hire staff to oversee and expedite cleanups. Better oversight and quicker action can reduce the
costs of cleaning up MTBE contamination, which can cost 100% more than a cleanup involving the
typical gasoline contaminants. Accelerating the pace of these cleanups will result in 500 additional
cleanups completed, from the end of FY 2002, that  may involve groundwater and  MTBE
contamination. In turn, fewer communities and individuals, including those in Indian Country, will
lose their drinking water supplies. UST owners and operators undertake nearly all cleanups under
the supervision of state or local agencies. The- Agency oversees these activities in  Indian Country.
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Research

     In FY 2003, contaminated sites research will  be conducted to:  1) reduce uncertainties
associated with soil/groundwater sampling and analysis; 2) reduce the time and cost associated with
site characterization and site remediation activities; 3) evaluate the magnitude of the risks posed by
contaminants to human health and the ecosystem as well as the contributions of multiple exposure
pathways,  the  bioavailability of  adsorbed contaminants  and treatment residuals, and  the
lexicological properties of contaminant mixtures; and 4) develop and demonstrate more effective
and less costly remediation technologies involving complex sites and hard-to-treat wastes.  Other
proposed work will  enhance and accelerate current  contaminated sediments research efforts,
providing the data needed to make and support crucial decisions on high impact and high visibility
sites. Research focusing on Homeland Security issues such as transfer of technologies and guidance
on decontamination processes, evaluating existing and new cleanup and detection technologies,
developing risk assessment methodologies for the both the short and long term, and producing rapid
decontamination techniques and technologies for cleanup of contaminated buildings will begin in
FY 2003.  These research efforts are critical in order to prevent and respond to future instances of
bioterrorism.

     Waste management research in F Y 2003 will support the Hazardous Waste Identification Rule
(HWIR), a risk-based approach for delisting wastes, as well as study improved ways to minimize
waste releases and impacts. Additionally, waste management research will be conducted to improve
the management of both solid and hazardous wastes.

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 the 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 release prevention and cleanup
goals 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 UST/LUST program.  The Agency's ability to achieve its goals is dependent on
                                         V-13

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the strength of state programs and state funding levels. The Agency will build upon its commitment
to provide states and tribes with technical support and incentives to meet national LUST cleanup
targets. Technical support and incentives range from promoting multi-site cleanup agreements,
conducting cleanup  pilots to  test the  benefits of incentive-based cleanups, such as pay-for-
performance contracting and providing other tools to help states and the tribes achieve faster, less
expensive, and more effective LUST cleanups.

      For the risk management and Homeland Security 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, EPA plays a key role, but neither controls the resources nor sets the
priorities to ensure that all Federal, state and local participants are engaged at a level that will ensure
our commitments are met.
                                         V-14

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                          Environmental Protection Agency
           FY 2003 Annual Performance Plan and Congressional Justification

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

Objective: 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 Superfund,  RCRA,
underground storage tank (UST), and brownfield 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)

Control Risks from Contaminated Sites
and Respond to Emergencies
Environmental Program & Management .
Hazardous Substance Superfund
Leaking Underground Storage Tanks
Oil Spill Response
Science & Technology
State and Tribal Assistance Grants
Superfund Reimbursables
Total Workyears
FY 2001
Actuals
$1,524,914.9
$61,220.7
$1,308,981.8
$69,762.9
$876.6
$51,393.2
$32,475.3
$204.4
3,556.1
FY 2002
Enacted
$1,397,140.9
$67,012.0
$1,175,519.4
$70,842.7
$905.2
$47,948.5
$34,913.1
$0.0
3,580,7
FY 2003
Request
$1,544,018.6
$90,464.8
$1,166,199.3
$70,100.2
$909.9
$5,931.3
$210,413.1
$0.0
3,698.3
FY 2003 Reg.
v. FY 2002 Ena.
$146,877.7
$23,452.8
($9,320.1)
($742.5)
$4.7
($42,017.2)
$175,500.0
$0.0
117.6
                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Assessments
Brownfields
Capacity Building
Civil Enforcement
Compliance Assistance and Centers
Congressionally Mandated Projects
Facilities Infrastructure and Operations
FY 2001
Enacted
$14,390.0
$79,417.5
$92,540.3
$755.4
$0.0
$1,174.3
$7,225.4
$44,107.7
FY 2002
Enacted
$0.0
$76,472.9
$97,632.7
$725.1
$612.2
$670.0
$8,815.0
$50,320.3
FY 2003
Request
$0.0
.$76,236.3
$199,768.9
$652.6
$582.1
$689.8
r $0.0
$45,816.0
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($236,6)
$102,136.2
($72.5)
($30.1)
$19.8
($8,815.0)
($4,504.3)
                                      V-15

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Federal Facilities
Federal Facility lAGs
Federal Preparedness
Hazardous Substance Research:Hazardous
Substance Research Centers
Hazardous Substance Research: Superfund
Innovative Technology Evaluation (SITE)
Homeland Security
Homestake Mine
LUST Cleanup Programs
Leaking Underground Storage Tanks
(LUST)Cooperati've Agreements
Legal Services
Management Services and Stewardship
Other Federal Agency Superfund Support
Planning and Resource Management
RCRA Corrective Action
RCRA State Grants
Radiation
Regional Management
Research to Support Contaminated Sites
Superfund - Cost /Recovery
Superfund -*• Justice Support
Superfund - Maximize PRP Involvement
(including reforms)
Superfund Remedial Actions
Superfund Removal Actions
FY 2001
Enacted
$30,622.0
$8,45,5.1
$9,728.2
$4,527.7
$6,554.0
$3,194.0
$0.0
SI 0,055.4
$58,341.3
$4,643.6
$13,538.0
$10,676.5
$26.4
$41,150.9
$32,736.6
$14,032.7
$1,209.3
$30,666.5
$29,495.5
$28,437.3
$82,193.9
$493,924.2
$198,973.0
FY 2002
Enacted
,$3.1,206.5
$8,784.7
$9,849.3
$4,576.8
$6,501.0
$45,485.4
$0.0
$10,067.4
$59,331.9
$4,610.7
$27,997.8
$10,676.0
$0.0
$38,262.3
$31,913.1
$14.623.5
$1,467.0
$29,896.9
$29,477.5
$28,150.0
$81,701.1
$484,659.8
$202,654.0
FY 2003
Request
$31,915.5
$9,091.7
$9,883.0
$4,599.2
$6,545.0
$86,310.4
$8,000.0
$10,285.4
$58,341.2
$5,077.4
$29,308.3
$10,676.0
$0.0
$38,965.2
$31,913.1
$14,899.8
$1,452.5
$28,121.1
$30,375.9
$28,150.0
$84,396.9
$489,355.0
$202.610.3
FY 2003 Req.
v. FY 2002 Ena.
$709.0
$307.0
$33.7
$22.4
$44.0
$40,825.0
$8,000.0
$218.0
($990.7)
$466.7
$1,310.5
$0.0
$0.0
$702.9
$0.0
$276.3
($14.5)
($1,775.8)
$898.4
$0.0
$2,695.8
$4,695.2
($43.7)
 FY 2003 Request

Leaking Underground Storage Tanks

       In partnership with states and tribes, the goal of the Leaking Underground Storage Tank
(LUST) program is to promote better, faster, and less expensive cleanups while encouraging the
return of properties to productive and appropriate reuse. The LUST program addresses the threat to
groundwater from Federally regulated leaking underground storage tanks that contain petroleum or
hazardous substances. Underground Storage Tank (UST) owners and operators undertake nearly all
corrective actions under the supervision of state or local agencies. The Agency oversees these
activities in Indian Country.
                                        V-16

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       In FY 2003, the Agency's goal is to complete 22,500 cleanups under the supervision of EPA
and its state, local and tribal partners.  The Agency will also continue to encourage the return of
properties to productive reuse as part of the LUST corrective action process. The LUST program
requires that UST owners and operators take appropriate measures to clean up releases. In recent
years, contamination from the petroleum additive, methyl tertiary butyl ether (MTBE), has posed
unique and significant challenges for the LUST Program. In FY 2003, the Agency plans to further
assess the impact of groundwater and MTBE contamination on cost and the duration of the cleanup
efforts.  This assessment will enable the Agency to more effectively address the complex nature of
groundwater and MTBE contamination cleanup efforts.

       One of the Agency' s highest priorities in the LUST program over the next several years is to
address approximately 150,000 cleanups that have yet to be completed. A vast majority of these
releases are contaminated by MTBE which, if not addressed rapidly, moves quickly through soil and
can easily contaminate groundwater and drinking water. This is a serious concern in Indian Country
where there is more reliance on groundwater as a source for drinking water. Many cleanups which
involve groundwater and MTBE contamination, result in more complex, costly, and time-consuming
cleanups. In spite of this, the Agency will try  to accelerate the pace by providing support to state
staff to oversee and expedite LUST cleanups.  Better oversight and quicker action can reduce the
costs of cleaning up MTBE contamination, which can cost 100% more than a cleanup involving
typical gasoline  contaminants.  Accelerating the pace of these  cleanups  will result in  fewer
communities and individuals, including those in Indian Country, losing their water supplies.

       The LUST Program will  also help to advance EPA's one cleanup program theme by
continuing its close relationship and dialogue with  states, which are the primary implementers of the
LUST Program, and with tribes. Furthermore, the Senior  Cleanup Council, comprised of upper-
level EPA and state managers representing all cleanup programs including the LUST Program, plans
to continue their work to address policy and implementation issues that will streamline and improve
consistency among all cleanup programs.                            •    . .

       EPA plays a key role in  implementing the national LUST Program  by  supporting the
management of state, local, and tribal enforcement and response capability. In addition, the Agency
shares  lessons learned with state regulators and the regulated community to increase cleanup
accomplishments. EPA will provide states and Tribes with technical support and incentives to meet
national LUST cleanup goals. 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.

       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 fund cooperative agreements under  which 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, LUST resources are available to pay for this activity. To be effective,
remediation technologies will need to advance in order to address new contaminants, such as MTBE.
                                        V-17

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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 has the primary responsibility for implementing the LUST program in Indian
Country. EPA oversees and conducts site assessments and remediation, in part, through a national
LUST contract designed specifically for Indian Country. Through the end of September 2001, there
were 1,150 confirmed releases, 886 cleanups initiated, and approximately 532 cleanups completed.
The Agency estimates that cleaning up all known and yet-to-be-discovered releases in Indian
Country will take several years.
Superfund
                      National UST Corrective Action Activity
                  Total corrective action cumulative over time from FY1991 - FY2001
           91
92
93
94
95     96     97
    Fiscal Year
98
                                                                               010
         D Cleanups Completed  ECleanups Initiated  •Confirmed Releases
       In support of the Agency's one cleanup program theme, the Superfund program addresses
contamination from uncontrolled releases at Superfund hazardous waste sites threatening human
health, the environment, and the economic vitality of local communities.  Superfund sites with
contaminated soils and groundwater exist nationally in a large number of communities.  Many of
these sites  are located in urban areas, are accessible by children,  and expose disadvantaged
populations to contamination. Once contaminated, groundwater and soils may be extremely difficult
                                       V-18

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and costly to clean up.  Some sites will require decades to clean up because of their complexity.

       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,
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) ensure long-term protectiveness of remedies by overseeing operations and maintenance and
conducting five-year reviews; 7) enhance the role of states and Indian Tribes in the implementation
of the  Superfund program; 8)  work with the surrounding communities to improve their direct
involvement in every phase of the cleanup process and their understanding of potential site risk; 9)
continue progress of cleanups while increasing consistency with other EPA cleanup programs; and
10) promote reuse and redevelopment of Superfund sites.

       EPA's efforts to address uncontrolled releases at Superfund sites begin when states, Indian
tribes,  citizens, other Federal agencies, or other sources notify EPA of a hazardous waste site or
incident. EPA confirms this information and places sites requiring Federal attention in the Agency's
Comprehensive  Environmental Response,  Compensation and  Liability Information  System
(CERCLIS) database (in the case of Federal facilities, sites are placed on the Federal facility
hazardous waste docket). EPA assesses these sites to determine whether Federal action is needed.
In most cases, EPA makes a determination that no further Federal action is required. These sites are
removed from the inventory. If warranted, EPA may refer sites removed from its inventory to state
or Tribal environmental authorities for further attention. For those sites requiring additional action
to protect public health and the environment, EPA seeks the course of action best suited for the
individual site. Sites posing immediate risks may be addressed under removal authority.  EPA may
defer response at sites with ongoing state action. In some instances, potentially responsible parties
enter into agreements with EPA to evaluate or clean up sites prior to listing on the NPL.  In such
cases, where cleanup is progressing in a timely and protective manner or is completed prior to final
listing, listing on the NPL may  be unnecessary. Some sites may be addressed under both removal
and remedial authorities when, for example, early removal action is taken to address immediate risks
at sites on the NPL. As a matter of policy, EPA seeks a concurrence from a governor before listing a
site on the NPL.

       EPA undertakes removals to prevent, reduce or mitigate threats posed by releases or potential
releases of hazardous substances, pollutants, and contaminants in emergency and non-emergency
situations at NPL and non-NPL sites. EPA undertakes removal response actions at: 1) emergency
incidents where response is necessary within a matter of hours (e.g., threats of fire or explosion); 2)
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.
                                         V-19

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      For sites listed on the NPL, remedial work begins with site characterization and a feasibility
study to review site conditions and proposals for future land use. These actions form 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 cleanup or other work necessary to implement the remedy  selected.
Potentially responsible parties or other Federal agencies perform remedial action work.  EPA or
states may also perform remedial cleanup as Fund-financed actions.

      In FY 2003, EPA will complete construction at 40 NPL sites. As of September 30, 2001,
                   Cumulative Construction  Completions
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•
                   1996    1997    1998
                                        1999    2000    2001   2002 Est.  2003 Est

                                       Fiscal Year
EPA completed all final cleanup plans at over 1,000 Superfund NPL sites, undertaken over 6,500
removals at hazardous waste sites to immediately reduce the threat to human health and the
environment, assessed over 43,700 sites, and removed more than 32,700 sites from the CERCLIS
waste site list to help promote the economic redevelopment of these properties. The Agency also
has cleanup construction underway or has completed 92% of the 1,479 sites on the final NFL,
including:

•54% of sites have all cleanup construction completed (804 sites)
•26% of sites have remedial cleanup construction underway (391 sites)
•11% of sites have had or are undergoing a removal cleanup action (167 sites).

In FY 2003, EPA will continue its efforts to control human exposure pathways and control the
migration of contaminated groundwater at NPL and non-NPL-sites.

       Additionally, environmental data gathered by EPA through August 30, 2001, shows that
Superfund continues to fulfill its environmental mission and is reducing the risks to human and
                                       V-20

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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.

       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 that the cleanup works properly and the site remedy continues to be protective of human
health and the environment; 2) operation of Fund-financed groundwater restoration systems for up to
10 years (long-term response), and  oversight of states and PRPs operating these systems until
cleanup goals are achieved; 3) implementation of institutional controls and oversight to ensure they
remain protective; 4) five-year reviews to assure that remedies remain protective; 5) optimization of
groundwater 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. Also, these post-construction actions are essential to assure
that Superfund sites are safe for revitalization and reuse following cleanup,

       EPA is committed to involving citizens in the site cleanup process.  Superfund bases its
community involvement on two-way communication designed to keep citizens informed about site
progress and give them the opportunity to provide input on  site decisions.  The Agency conducts
outreach efforts, such as holding public meetings,  establishing community advisory groups, and
distributing site-specific fact sheets.  EPA also provides communities with financial assistance to
hire technical consultants to assist them in understanding the problems and potential solutions to
address hazardous waste cleanups. The Agency strives to create a decision-making process to clean
up sites that communities feel is open and legitimate, and improves the community's understanding
of potential risk at hazardous waste sites.

        States and Indian Tribes are key partners at Superfund sites. EPA can authorize the states or
Tribes to carry out Fund-financed remedial actions. However, states and Tribes more  often operate
in the role of a support agency to remain actively involved  in site response activities while EPA
plays the lead role. To support their involvement as a  lead or support agency, EPA provides
financial support through cooperative agreements to conduct removal, site assessment, remedial, and
enforcement projects and for core infrastructure 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 the
Comprehensive Environmental Response, Compensation and Liability Act (CERCL A) responses.
EPA currently has core program cooperative agreements with 46  states and 55 Tribes or Tribal
consortia. Activities funded under the core program cooperative agreements include: 1) developing
procedures for emergency response and long-term remediation (e.g., health and safety plans, quality
assurance project plans, and community relations plans); 2) satisfying all Federal requirements and
assurances (e.g.,  fiscal and contract management activities for CERCLA); 3) providing  legal
                                        V-21

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assistance (e.g., coordinating applicable  or  relevant and  appropriate requirements  (ARAR)
identification); and 4) training staff to manage publicly-funded cleanups.

       Across the country, thousands of Federal facilities are contaminated with hazardous waste,
military munitions,  radioactive waste, fuels, and a variety of other toxic contaminants.  These
facilities include many different types of sites, such as formerly used defense sites (FUDS), active,
closing and closed  installations, abandoned mines, nuclear weapons production facilities, fuel
distribution areas, and landfills. EPA's Federal Facilities Restoration and Reuse Office 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, while
encouraging restoration and reuse.  The Federal Facilities program provides technical and regulatory
oversight  at Federal facility sites  to ensure  protection  of human health,  effective  program
implementation, and meaningful public involvement. The Agency encourages citizen involvement
by working with DOD to establish Restoration Advisory Boards and DOE to establish Site Specific
Advisory Boards.

       There is arising demand for EPA's involvement in DOD's Military Munitions Response and
FUDS programs.  DOD has estimated that millions of acres of training ranges in the United States
and its territories are contaminated with military munitions. By their nature, military munitions
(unexploded ordnance, buried munitions, and reactive or ignitable soil) present explosive, human
health, and environmental risks. When disturbed, munitions may explode causing immediate death
or disablement to those nearby. The different types of military munitions vary in their likelihood of
detonation. EPA is working on several initiatives with DOD, the states, and Federal Land Managers
to help build DOD's Military Munitions Response program.  Over the past several years, EPA has
increased its focus on environmental investigations and cleanups of privately-owned FUDS. FUDS
are sites not currently owned by DOD (this  includes FUDS owned by the states, Tribes, cities, and
other governmental  entities, as well as individuals, corporations, etc.).  The Agency is working on
several initiatives with the United  States Army Corp of Engineers, states, and Tribes in the
identification and cleanup of over 9,000 FUDS nationwide.

       The  Superfund Federal Facilities Response program works on a large number of ongoing
projects: 488 remedial investigations/feasibility studies, 74  remedial designs, and 212  remedial
actions. In many cases, Federal facilities face unique challenges with types of contamination (e.g.,
radiation, military munitions), the size of the facility (e.g., DOE's Hanford is over 500 square miles),
or the complexities of reuse related to environmental issues (e.g., base closure).

       EPA partners with other federal agencies, states and local governments, and private industry
to fulfill superfund program priorities when a site is radioactively contaminated. Under CERCLA,
radioactively contaminated sites  are addressed in a  manner  consistent with how chemically
contaminated sites are addressed, accounting for the technical differences. The Radiation program
provides radiological scientific and  technical expertise and leadership in evaluating projects and
providing field and laboratory support.

       EPA has significantly improved the Superfund program largely as, a result of reforms and
reinvention  continuously implemented since 1989 (e.g., "enforcement first", "worst sites first").
                                         V-22

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These efforts will continue in 2003.  Over the years, Superfund has amassed many noteworthy
achievements.  Key accomplishments through the end of 2001 include:  1)  establishing 84
community advisory groups at sites across the country; 2) reviewing 59 new site remedy decisions
for an estimated savings of over $80,000,000 (F Y 2000); 3) saving more than $1.3 billion in future
costs from updating over 350 existing remedies (FY 2000); 4) evaluating over 30 planned projects to
establish funding priorities based on site risks; and 5) archiving over 32,700 CERCLIS sites to help
promote the economic redevelopment of these properties. Superfund has successfully integrated
many of its reforms into the program,  and these fundamental changes are continuing to produce
positive results. EPA will continue its reform efforts in FY 2003, and will incorporate lessons
learned through reforms into its FY 2003 themes of revitalization and one cleanup program.

      In  FY 2003, the Superfund redevelopment initiative will .support the Agency theme of
revitalization, coordinating a national effort to facilitate the return of Superfund sites to productive
use.  EPA is increasingly aware of the importance of fully exploring future use opportunities at
Superfund sites with its partners before selecting and implementing a cleanup remedy. As a result,
Superfund sites that were once thought to have no future use potential are now being "recycled"
back into productive use.  EPA has compiled a list of over 260 Superfund sites that  have been
recycled for numerous purposes.  For example, more than 60,000 acres are now in ecological or
recreational use at these sites. Additionally, more than 15,500 jobs, representing approximately
$500,000,000 in annual income, are located at sites that have been recycled for commercial use.
Under this initiative-EPA will continue to focus its efforts on the potential reuse of Superfund sites
and involve its partners to determine future  uses of sites.  EPA can  then  select, design, and
implement cleanups that are protective of human health and the environment consistent with chosen
future uses.  EPA has given  communities at 50 pilot sites up to $100,000 in direct financial
assistance and/or services.  EPA will assess the impacts from these pilots on the Superfund program
and their potential to facilitate site reuse following clean-up.  By the end of FY 2003, EPA expects
to have completed reuse plans for all 50 of the pilot sites.

      In an effort to better implement the Agency's Quality Assurance Order (EPA Order 5360.1
A2 May 2000), EPA is enhancing the quality management activities of its Superfund program office.
 This work entails the implementation of a quality management plan based  on  the EPA Order.
Specific enhancement  of standard operating procedures, guidance for  the development and
application of models, training for quality related activities, and other activities will aid in promoting
quality.  The quality management plan will initiate a continuing process to improve environmental
cleanup decisions. These activities will continue to promote cross program coordination so that
Superfund cleanup efforts will reflect increasing progress toward consistency and transparency
across programs that is needed to support the goal of one cleanup program. The maintenance of up-
to-date standard operating procedures allows EPA to continue to take immediate actions to address
Homeland Security threats and other responses that require quality assurance procedures for the
collection and assessment of data to support decisions on hazards and cleanup. Finally, these quality
assurance  activities support revitalization efforts through the  establishment of transparent and
consistent standards for environmental cleanups.

      Activities to establish consistent Quality Assurance processes among EPA, DOD and DOE
will continue in FY 2003. An Intergovernmental Data Quality Task Force (IDQTF) has completed
                                        V-23

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development of a Uniform Federal Policy for Implementing Quality Systems. The Task Force is
chaired by the Director of the Federal Facilities Restoration and Reuse Office. This policy will form
the basis of a DOD-wide quality system and is under consideration as the basis of a DOE-wide
system.  EPA and DOD are negotiating a Memorandum of Understanding on implementation of the
Policy.

      The IDQTF has also released a draft Uniform Federal Policy for Quality Assurance Project
Plans and requested review and comments from DOD, DOE, the Association of State and Territorial
Solid Waste Management Officials, and EPA Headquarters and Regional offices. The Task Force
feels the use of this policy will promote consistency and uniformity in planning data collection. The
anticipated  results include improved data quality and cost and time savings in the future,  While
these policies are based on a national consensus standard, Specifications and Guidelines for Quality
Systems for Environmental Data Collection and Environmental Technology Programs (ANSI/ASQC
E-4), agreement between Federal agencies to adopt specific procedures is a new and innovative
approach in the quality arena. These initiatives will also support compliance with the guidance
issued by the Office of Management and Budget on January 3, 2002 entitled "Guidelines for
Ensuring and Maximizing the Quality, Objectivity, Utility and Integrity of Information Disseminated
by Federal Agencies."

Federal Preparedness and Homeland Security

      In support of Homeland Security, the Environmental Response Team Center West (ERTC-
West) will provide emergency response resources to support FBI-led response teams in a terrorism
event; response action  includes threat  assessment, site evaluation and removal actions, agent
identification, hazard detection and reduction, environmental monitoring, decontamination and long
term site restoration.  ERTC-West will  provide  technical assistance in hazardous material
emergencies, radiation emergencies and enforcement of environmental regulations.  ERTC -West
will also provide technical assistance on remedial actions for immediate and long-term activities at
oil spill sites and for designing and implementing plans for monitoring air, water and sensitive
habitats. ERTC-West will maintain an emergency response activation system to assist the EPA
Western Regions and program offices in responding to environmental emergencies and uncontrolled
oil and hazardous wastes sites.  The ERTC-West will also conduct training  for Federal, state and
local government  officials and private industry representatives  in the latest oil and hazardous
substance response technology.

      In alignment with the Agency's Homeland Security program, 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, co-chairs the 13 RRTs throughout the U.S. and is the lead agency for Emergency
Support Function 10 (hazardous materials) under the FRP. The NRT/RRT integrates the actions of
all Federal  partners  (comprised of 16 Federal agencies) to prevent, prepare for and respond  to
hazardous substance, and terrorist attacks that involve hazardous substances and weapons of mass
destruction releases.

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       In the aftermath of the terrorist attacks of September 11 and the subsequent anthrax incidents
nation-wide, EPA demonstrated its leadership as head of the NRT. EPA's Superfund Program OSCs
responded to New York at Ground Zero within hours of the attack to monitor for contaminants in the
air and water, assist in the management of wastes and conduct cleanup and decontamination; these
operations  have been sustained for months  by  drawing on EPA's  response resources from
throughout the country. OSCs were also present at the Pentagon to provide technical assistance to
the first  responders.   EPA has also been involved in the assessment and decontamination of
numerous sites and facilities contaminated with anthrax including the congressional office buildings
on Capitol Hill and has provided substantial technical support to the United States Postal Service
and other Federal facilities at anthrax sites across the country.

       The FRP provides for the coordination of Federal operations and the delivery of Federal
assistance to states to help them deal with the consequences of significant disasters, including
terrorist acts.  The FRP is also linked to national security and Homeland Security requirements
defined by Presidential Decision Directives (PDDs), including:

* *     Continuity of Operations (COOP) Program. The Presidential Decision Directive (FDD) #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 FY 2003, EPA will conduct individual
       and 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.  One key lesson learned from the September 11 attacks was the
       importance of alternate facilities for regional operations, since EPA's Region 2 office was
       severely affected for weeks after the World Trade Center incident. The Agency  will refine all
       its COOP plans (Headquarters and Regional) and examine the capabilities of, and upgrade
       Headquarters and Regional alternate facilities.

•*     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.  The EPA is working with the Critical Infrastructure Assurance
       Office (CIAO) within the Office of Homeland Security to identify its critical infrastructure
       under Project Matrix.  Project Matrix will  also identify interrelationships of EPA's assets
       with critical infrastructure of other Federal departments and agencies. The Agency will take
       appropriate action to minimize potential threats to its critical infrastructure and to minimize
       the  impact of any  attack.  Among the areas of interest to CIAO  as probable  critical
       infrastructure, as demonstrated by their reaction to the September 11 attacks and the anthrax
       exposures, are EPA's hazardous  waste response resources, both response personnel  and
       equipment.

•*     Homeland Security Emergency Preparedness.  PDDs #39 and #62 define Federal  agency
       roles during responses to terrorist attacks.  EPA is directed to provide technical support to
       the  FBI during the crisis management phase and to be the lead agency for mitigation of
       environmental hazards  during the .consequence management.   In implementing  this
       responsibility, EPA integrates prevention, preparedness and response actions within  the
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       National Response System and coordinates with and provides assistance to state Emergency
       Response Commissions and Local Emergency Planning Committees.
       In FY 2002, the Homeland Security supplemental budget provided EPA with resources to
increase response capability and capacity with additional preparedness and response personnel,
equipment and training for Regional and Headquarters programs.  In FY 2003 the Agency will
continue to develop its Homeland Security preparedness and response program to provide a national
capacity to respond to incidents of terrorism. EPA efforts will focus its efforts on the following key
areas:

•      Operating of a West Coast Environmental Response Team (ERT). The ERT is EPA's center
       of expertise for environmental emergency response, providing state-of-the-art air monitoring,
       hazard assessment and remediation science and engineering services to EPA regional offices
       and other Federal response agencies. EPA's existing ERT is based on the East Coast with a
       small branch in the midwest. The West Coast ERT will allow the Agency to provide critical
       rapid response support to regions in the western part of the country.

•      Enhancing the readiness capabilities of EPA's responders to handle the risks associated with
       chemical, biological and radiological substances.

•      Providing advanced training to all OSCs and other Federal, state and local responders to deal
       with the added dangers of chemical, biological, and radiological terrorist incidents.

•      Developing and implementing an agency-wide exercise program focused on terrorism
       preparedness and response that will include all regions, Headquarters, and ERT to ensure
       that Standard Operating Procedures (SOPs), training, and equipment are tested and validated.
       This program will also enhance EPA's mandatory participation in interagency terrorism
       exercises, such as TOPOFFII, a government-backed Homeland Security exercise.

•      Purchase state of the art response equipment for EPA OSCs and response contractors (e.g.,
       personal  protection, field analysis, monitoring, decontamination, and communications
       equipment).

•      Assist state and local emergency managers to include terrorism in local emergency response
       plans. At the Federal level participate as a full Federal partner to the Office of Homeland
       Security in developing a cohesive national Homeland  Security strategy.  This includes
       working with other Federal Agencies to coordinate national preparedness efforts and
       participate in National Security Special Events.

Radiation Guidance and Support

       In 2003, 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
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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, 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.
•      Providing training and direct site assistance including laboratory, field and risk assessment
       support at sites with actual or suspected radioactive contamination.
•      Develop and participate in Homeland Security training exercises and other preparedness
       activities
•      Represent EPA in Homeland Security international and national planning meetings.

     •  The radiation program also maintains an on-going capability to provide radio analytical 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 2003, EPA will continue its successful
emphasis on completing construction at Superfund sites by obtaining commitments from PRPs to
conduct new remedial actions at  non-Federal facility sites and ensuring Federal facility  with
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 viable 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 funding to the Department of Justice (DOT) through
an interagency agreement (IAG) to assist  EPA Superfund in enforcement efforts.

       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
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orphan share determinations; making orphan share offers at all eligible sites; expediting negotiations
to facilitate early de minimis settlements; settling with parties with limited ability to pay; making
more effective and widespread use of Alternative Dispute Resolution (ADR); issuing administrative
orders to the maximum practicable number of PRPs at a given site; and creating site-specific special
accounts.

       In FY 2003, 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
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 CERCLA
§ 120 agreements. CERCLA § 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 TAG and oversight of its
implementation ensures a protective cleanup at a timely pace. EPA will monitor  milestones in
existing lAGs, resolve disputes, and oversee all remedial work being conducted by Federal facilities.
 EPA will work with affected agencies to resolve outstanding policy issues relating to the cleanup of
Federal facilities.  For FY 2003, EPA will initiate negotiations  for an IAG at 100% of Federal
facility Superfund sites within 18 months after final listing on the NPL.

       In FY 2003, 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 the Superfund program by providing essential services
in areas where EPA does not possess the needed 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
Remedial Project Managers (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 OSCs 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.
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                       Overview of Other Federal Agency Funding
Agency
DOI
FEMA
NOAA
OSHA
USCG
TOTAL
FY 2002
Enacted
$997,800
$1,097,600
$2,444,600
$648,600
$5,487,900
$10,676,500
FY2003
Request
$997,800
$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
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 states,
Tribes and local governments with the tools and financial assistance to  assess,  clean up, and
redevelop brownfields properties.   The  Agency's  FY  2003 request includes  an additional
$102,000,000 investment in brownfields, which provides for new and supplemental assessment
grants, Brownfields cleanup revolving loan fund (BCRLF) grants, cleanup grants, funding directly to
states and Tribes to support the state voluntary cleanup programs, and targeted assessments.

       Increased funding will allow for more funds to be leveraged, more jobs to be created, and
more grants to receive assistance  each year. By the  end of FY 2003, 456 assessment grants will
have been awarded, with 74 new and 52 supplemental newly announced that fiscal year.  In FY
2003,33 BCRLF grants will be funded for up to $1,000,000 per eligible state, Indian Tribe or local
government entity to clean up brownfields sites and, for the first time, cleanup  grants will be
awarded up to $200,000 per site. It is estimated that cleanup funding might be available for up to 25
sites combined with the BCRLF grant programs.

       The Small Business Liability Relief and Brownfields Revitalization and Environmental
Restoration Act (H.R. 2869), has authorized, for the first time, the cleanup of petroleum sites.  The
$30,000,000 requested increase would clean up a portion of the estimated 200,000  abandoned
petroleum tanks found at sites. This represents a great opportunity for the Administration to address
a major regulatory gap in  the current  Brownfields  program created by Superfund's petroleum
exclusion. These resources would support approximately 50 communities to assess and clean up
abandoned gas stations within their Brownfields areas in conjunction with the current brownfields
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assessment and cleanup programs.

       The Agency provides funding for site assessment demonstration grants of up to $200,000
each. Recently, EPA has made supplemental funding available to a small subset of these grants,
who have accomplished a high number of assessments, cleanups and redevelopments. These grants
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 399 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. More than 2,600
properties have had environmental assessments completed under the assessment program since
program inception.  In FY 2003, the Agency will continue to fund grants. EPA designed this
assistance 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
properties. To date, grants have leveraged over 17,000 cleanup, construction and redevelopment
jobs.

       Where appropriate, the Agency provides funding for targeted assessments in communities
that  are  not  successful  in competing for an  assessment grant. Site assessments at non-grant
Brownfields sites are performed either under existing cooperative agreements with states or through
EPA contractors. This activity enjoys wide support from cities and other local communities. This
funding provides preliminary assessments and site investigations using standard methodologies
established by the American Society for Testing Materials.

       To continue EPA's efforts to provide a pattern of interagency collaboration in addressing
environmental and economic issues in communities, the Agency and its Federal partners designated
12 new showcase communities in 2001 for a  total of 28 showcase communities. These 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; 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 BCRLF grants of up to
$1,000,000 each.   All communities with  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 grants at up
to $200,000 over two years to help residents of brownfields communities take advantage of new jobs
created by the assessment and cleanup of brownfields.
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       Funding to support enhancement and development of state and Tribal voluntary cleanup
programs (VCPs) has been increased and continues to be a priority in the Agency's attempt to reuse
and redevelop 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 18 memoranda of
agreement that clarify  that 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 over $85,000,000 for
assessment demonstration and BCRLF grants, voluntary cleanup programs, and targeted brownfields
assessments.

       By funding the increased level of grants in FY 2003, a commensurate increase in leveraged
investments and jobs  in FY 2004 and 2005 will  be expected.   By the end of FY 2005, the
brownfields grants should leverage close to $7 billion and 25,300 jobs in cleanup, construction, and
redevelopment with 3,850 properties assessed, given continued economic conditions.

       To implement this legislation, the enforcement program will undertake several key activities,
such as : issuing regulations describing "all appropriate inquiry"; reviewing site-specific requests
from prospective purchasers, contiguous landowners, and other parities; and,'developing guidance
describing certain federal enforcement actions restrictions at brownfields sites being addressed under
state response programs.

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 achieve
the Agency's goal of "making property environmentally acceptable for transfer, while protecting
human health and the environment" at realigning, closing or closed military installations.  These
activities complement Agency themes of one cleanup program and revitalization. Between 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, 204
require  some type  of environmental  restoration.   Of the installations requiring environmental
restoration, 108 have been designated as Fast-Track installations.  The four rounds of BRAC are
generally referred to as BRAC 1988, BRAC 1991,  BRAC 1993, and BRAC 1995, indicating the
year in which each cluster of military installations were selected for realignment or closure.

       The Fast-Track program strives to make parcels available for reuse as quickly as possible by
transfer of uncontaminated or remediated parcels, by lease of contaminated parcels where cleanup is
underway,  or by "early transfer"  of contaminated property.   Since 1993-, EPA and DOD have
addressed lease-related concerns at BRAC sites by preparing findings of suitability  to lease or
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transfer that summarize any and all environmental information upon which DOD relies while
establishing environmental restrictions in leases on property conveyances necessary to protect
human health and the environment.  According to DOD's recent FY 2002 BRAC Cleanup Plan
Abstract Analysis to Congress, of the 390,270 acres planned for transfer or lease under the BRAC
Fast-Track program, 31 percent (122,351 acres) of the acres were transferred by the end of FY 2000
and 16 percent (62,315 acres) leased. The majority of BRAC acres planned for transfer from DOD
are intended for non-Federal entities. A major success for the Fast-Track program is the formation
of base cleanup teams (BCTs) at the Fast-Track designated installations. The teams, which include
environmental experts from EPA, DOD, and states, engineer common sense approaches to cleanups
by developing common goals and priorities. The" Agency empowers the team to integrate base reuse
priorities while making decisions to expedite the process of accelerating cleanup. To further assist
with 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.
  Acres  to Transfer out of DoD by BRAC Round

               (Source: DoD's FY 2002 BRAC Cleanup Plan Abstract Analysis to Congress)
                                                        BRAC 1988
                                                         83,528
    BRAC 1995
     163,847
                                                                BRAC 1991
                                                                 86,953
                            BRAC 1993
                             68,669
       The current EPA/DOD Memorandum of Understanding which provides support to EPA for
the Base Realignment and Closure Fast-Track Cleanup program, expires on September 30, 2002.
Although the President's Budget Blueprint contemplates additional BRAC rounds, the Agency's
focus is meeting the requirements of the existing BRAC bases and putting those facilities back into
productive reuse.  EPA and DOD are currently  discussing the Agency's future involvement in the
BRAC program.
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Resource Conservation and Recovery

       For decades, many industrial facilities in this country mismanaged their hazardous wastes.
The  Superfimd program addresses some of these  facilities, particularly those that have been
abandoned or closed. A significantly larger number, however, fall under the Resource Conservation
and Recovery Act (RCRA) corrective action program that EPA and the authorized states administer.
Currently,  thirty-nine states and territories are authorized to implement  the corrective  action
program. 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 are likely to be at significant current or future risk. The Agency is pursuing a
strategy for addressing the worst facilities first, as reflected in the Agency's annual performance
goal. This focus on near- term actions which will mitigate actual or imminent human exposure
problems and stop further spread of contaminants in the environment has resulted in over 600 of the
1,700 target facilities achieving their environmental indicator goals. The RCRA corrective action
program supports the Agency's one cleanup program theme.

       Over the past several years, the Agency has been successful in implementing administrative
reforms that streamlined the corrective action program and improved overall implementation. The
reforms have been effective in changing the way program implementors and stakeholders interact,
which has  had a  positive impact on moving facilities toward cleanup goals.  Given the many
challenges  of meeting the environmental indicator targets,  looking toward final cleanup,  taking
advantage of redevelopment opportunities, and cleaning up Federal facilities, maintaining strong
partnerships with all relevant stakeholders will continue to be a priority for the program in FY 2003.

       Despite the success of the administrative reforms to date, there remain enormous challenges
to for the corrective action program.  Groundwater issues  present very specific challenges, for
example, the extent and severity of the contamination, complex technical issues, and the expense of
groundwater  cleanups.  Also, many  of  the high priority facilities that have not yet met the
environmental indicator goals are extremely large and complicated sites that may not make progress
in cleanups at the same pace as those facilities that have already met the goals. These issues, as well
as others related to defining "completion" of cleanup and implementing institutional controls, have
surfaced during stakeholder meetings EPA hosted across the country in 2001.  EPA will continue
working in partnership with the stakeholders to further explore these areas.  Although the reforms
the Agency has implemented to date help address these larger challenges in part, there will be a need
for continued administrative improvements.

       In FY 2003, the Agency will continue to stress meeting the environmental indicator goals,
but will also place added emphasis and resources on moving facilities toward final cleanup. This
means working in partnership with the authorized states and the regulated community to resolve
some very challenging policy and technical issues, such as those associated with setting final
cleanup goals for groundwater, indoor air exposures, and groundwater-to-surface water pathways.
Since there is not a one-size-fits-all approach to cleanups, close working partnerships will allow all
parties to fully explore flexible, common sense approaches.

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       In support of the revitalization theme, the Agency will capitalize on the results of the RCRA
Showcase Pilots conducted in 2001 and 2002, applying the lessons learned on a wider scale in order
to facilitate redevelopment of RCRA brownfields sites.  By sharing the innovations demonstrated
through those pilots, others may learn of new approaches that are appropriate for or adaptable to
their situations.  The Agency will target other sites and surrounding communities with focused
attention and access to RCRA Brownfields expertise. EPA will continue the Targeted Site Effort
(TSE) and the RCRA Brownfields program to help "break the logjams" at sites that have significant
redevelopment/reuse potential. The efforts undertaken to date have influenced a culture change
whereby, in many cases, facility owners or operators, and the communities pursue redevelopment as
a primary objective of the cleanups. In FY 2003, EPA will continue to advance that perspective by
promoting and implementing its Revitalization Initiative,

       In FY 2003, the Agency will  continue to devote  special attention to Federal facilities
permitted under RCRA.  The Agency and the authorized states have worked with our Federal
partners to more effectively communicate cleanup goals and facilitate Federal facilities' cleanups.
For example, the Agency will foster dialogue with the authorized states and the Federal facility
community to explore such topics as innovative approaches to cleanups and regulatory flexibility.
Lessons  learned through pilot programs in other industries will be applied to Federal facilities,
leading to greater efficiencies in cleanups.

       Training and outreach are integral parts of the corrective action program's activities. The
way program implementors and the regulated community do business, and the way in which the
public  participates in cleanup decisions being made in their communities has been positively
influenced through the reforms. The Agency will build on the changes in culture that have started to
happen, promoting flexibility in program implementation so that people can do what makes the most
sense in a given situation, and encouraging more frequent communications among all parties.

       In addition, EPA is requesting $8,000,000 for the assessment and potential remediation of
Homestake mine in the  State of South Dakota to be funded within the STAG appropriation.

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 fall within this objective.

       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,
persistent bioaccumulative toxics (PBTs), and volatile organic chemicals; 2) the potential for
multiple routes of exposure; and 3) the large number of contaminated sites, many of which cover
large areas, resulting in 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 its importance to humans and ecosystems. The extent and geological, biological and chemical
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complexity of many of these sites present uncertainties when determining risk, as well as in finding
accurate, low-cost techniques for site characterization and remediation,

Groundwater, Soils and Containment

       The Agency supports an integrated research program of exposure, risk assessment, and risk
management in order to understand the processes that govern contaminant transport and fate, and to
assess and develop remediation and characterization/monitoring technologies, especially their cost-
effectiveness.

       In FY 2003, exposure research will include non-invasive geophysical techniques that provide
methods of subsurface site characterization and contaminant evaluation, yielding a greater ability to
make sound waste management decisions. Significant effort will be directed toward experiments at
a unique field test facility for evaluating these technologies under dense non-aqueous phase liquid
(DNAPL) controlled-spill conditions. A major product in FY 2003 will be a report on the use of
borehole dielectric techniques for the detection of non-aqueous phase liquids, above and below
groundwater at contaminated waste sites..

        Exposure research will also focus on the improved collection of soils contaminated with
volatile organic compounds (VOCs).  This research will examine VOC releases due to sample
disturbance, compositing soils contaminated with VOCs, improved soil gas sampling techniques,
and the quality of common analytical methods for VOCs in soils. In FY 2003, work will continue on
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.

       Other exposure research will  develop  and apply advanced instrumentation for soils,
sediments, and groundwater characterization and monitoring that focuses on methods to provide
high-quality data rapidly with simple and rugged protocols. Emphasis will be on technologies that
can be  used to perform analysis in the field, determine pollutants that are intractable by conventional
methods, and improve risk assessments by providing specific information on the most hazardous
forms  of pollutants.  Pollutants of primary interest are polyaromatic hydrocarbons  (PAHs),
chlorinated organics, and toxic metals. In F Y 2003, EPA will produce electrochemical techniques to
characterize and speciate Chromium III and VI. These methods will provide rapid and cost-effective
analytical tools for Superfund  site managers, regional offices, and other stakeholders.

       Risk assessment research focuses on both human and ecological health and aids in the
determination of risk management options as well as  characterization of contaminants.  Human
health research involves developing methodologies, models, and factors that enable risk assessors to
develop more accurate quantitative estimates of the likelihood of harm that may result from various
contaminated media. Major areas of emphasis for FY 2003 will  include:  developing statistical
distributions for exposure factors (home gardening is anew area); further refining and validating the
biokinetic models for lead and other toxic metals; developing better models and methods for dermal
exposure;-and completing health and exposure assessments for specific contaminants.

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       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 biologically
"available" to wildlife. In FY 2003, this research will continue to develop 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 in this area 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 and cost-
effective. This research evaluates and improves existing remediation techniques as well as develops
new clean-up processes.

       In the area of groundwater remediation research, the Agency plans to  continue work on
characterizing DNAPL source  zones  and on treatment and natural  attenuation  of inorganic
contamination. DNAPLs are a major cause of organic groundwater contamination for which there
are few effective commercialized remediation options. Research will also continue on the use of
DNAPL-extracting techniques for cleanup processes, as well as on approaches to  site  cleanup
combining multiple treatment processes for site remediation.

       Research will continue on the remediation of dissolved inorganic plumes, particularly toxic
metals, and related source areas. Field studies on monitored natural attenuation (MNA) of dissolved
metals will continue, as will studies of the application of permeable reactive barriers (PRBs) to
contaminants such as arsenic and mercury. Major areas  of emphasis in FY 2003 will be a multi-
agency report of the long-term performance of PRBs;  applying PRBs  effectively to  other
contaminants and environments; and improved methods for solid-phase characterization in support
of MNA.

       In FY 2003, containment research will include work on caps, covers, and vertical barriers
for the vadose zone (i.e., the transition zone between the land surface and the water table), as well as
fixed barriers and pumping methods for containing contaminated plumes. Research will also include
work on data collection and assessment of mature containment systems and long term performance
monitoring needs. Guidance documents will be developed to provide information for  new
construction.   Work is expected  to be  brought to a close on alternative  cover system  (e.g.,
vegetative) assessment.

Contaminated Sediments

       The Agency  has created an  integrated  research program on contaminated  sediments
addressing risk assessment, exposure, effects, and risk management issues.  This program addresses
priority research needs for the assessment and cleanup of sites.

       This research will focus on four important goals distilled from recommendations made by the
National Academy of Sciences and EPA's Science Advisory Board and "in accordance with the
Contaminated Sediments Science Plan: (1) develop scientific models and protocols that better define
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the risks to human health and the environment; (2) develop new cleanup alternatives and methods
that better evaluate which cleanup alternatives would be most effective; (3) develop techniques and
conduct monitoring to document the actual performance of cleanup technologies; and (4) develop
better methods and tools to increase community involvement in cleanup activities.

       EPA" will  initiate  activities on dermal contact and fish ingestion exposure pathways.
Estimates will be made of the amount of sediment that may come into contact with skin from various
activities. Exposure models and factors will be developed that accurately predict the amount of
contaminated fish and game that might be consumed. Of particular interest are the fish-eating habits
of sensitive sub-populations such as subsistence fishermen, certain ethnic groups, and disadvantaged
communities.

       In FY 2003, research will also investigate the effects of contaminated sediments on the
environment, aiding in the development of risk assessments.  Efforts will  focus on sediments
contaminated with persistent, bioaccumulative toxics (PBTs) in the context of the three primary
remediation options: natural attenuation, capping, and dredging. Approaches will be developed that
predict the biological uptake of chemicals from sediments, movement through the food web, and the
effects on top predator fish and fish-eating wildlife. To understand the ecological significance of
potential toxic effects,  the impacts on critical populations of fish-consuming  species will be
assessed.  These efforts will include understanding the effects of both freshwater and marine
contaminated sediments.

       Contaminated  sediments risk management  research  will  study  currently   available
remediation options, such as dredging and disposal facilities, natural attenuation, and capping. This
work will expand and additional sites will be studied to understand the cost-effectiveness and short-
and long-term ecological impacts of these options. Contaminants of focus include poly chlorinated
biphenyls (PCBs), PAHs, and metals.  In addition, bench and field work will be conducted on
innovative techniques for contaminated sediments cleanup. This work will provide EPA and other
stakeholders with better information for making scientifically sound cleanup decisions.

       Research will be  strengthened or expanded to provide improved and cost-effective
monitoring and characterization techniques for sediments to more accurately determine contaminant
types, locations, and concentrations. This will provide for improved assessment of risks and risk
management approaches.  Work will also continue to evaluate existing contamianted sediment fate
and transport models.

       Research on community involvement will focus on developing ways to measure community
preferences and ways to incorporate societal/cultural values into the decision-making process.

Superfund Innovative Technology Evaluation (SITE),  Hazardous Substance  Research Centers
(HSRCs), Oil Spills, and Leaking Underground Storage Tanks (LUST)

       Research  to reduce or control risks to human health from  contaminated sites  is also
conducted through the Superfund Innovative Technology Evaluation (SITE) program and the
Hazardous Substance Research Centers (HSRCs) program.  Additionally, the Agency supports
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efforts to reduce or control risks from oil spills arid leaking underground storage tanks.

       The SITE program fosters the development and  use of lower cost and more effective
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, yielding more efficient characterization and remediation processes. In
FY 2003, the Agency will initiate studies  of technologies dealing with priority  remediation
problems, including sediments, DNAPLs, and Brownfields. The annual SITE program report will be
produced, providing  information to Congress and the public/private sectors on field evaluation
results.

       In FY 2003, the Agency will also continue to support the Hazardous Substance Research
Centers (HSRCs): five multi-university centers focusing on different aspects of hazardous substance
management.  They  bring together researchers from a variety of disciplines to collaborate  on
research projects of high importance to the Agency (e.g., contaminated sediments).

       In FY 2003, 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 on navigable waterways.
Efforts will result in an interim report on adapting the oil spill model for Orimulsion (TM) and
vegetable oil modeling. Research will also focus on the use of bioremediation on inland waterways
spills, improving chemical countermeasures, and evaluating the fate of non-petroleum products (e.g.,
vegetable oils)  spilled on surface waters. Studies will be conducted on fuel mixtures spilled in
freshwater and marine environments to understand their fate. An international cooperative study of
dispersed oil and non-petroleum oil degradation in cold climates will  also be initiated.

       Leaking underground storage tanks  (LUST) corrective action research looks at cleanup
processes for fuels and fuel oxygenates, like methyl tertiary butyl ether (MTBE). This work results
in a better understanding of naturally occurring subsurface processes that degrade fuel components;
reliable indicators to measure natural attenuation; and models and resource documents to predict the
likelihood of site-specific natural attenuation effectiveness.  Studies on modeling of contaminant
transport and fate, and on oxygenate degradation processes will be integrated to better understand
how oxygenates behave in the subsurface. Emphasis will be on developing inexpensive techniques
that can be implemented in the near-term to address MTBE-contaminated sites.  These studies will
provide improved understanding  of natural  processes that affect MTBE.  A report on ex situ
treatment of fuel oxygenates will be produced, and work will begin on the development of models
for problems resulting from LUST sites.

Homeland Security

       The recent events  in the aftermath  of September 11,  2001  demonstrate the need for a
coordinated Federal,  state and local response to a wide variety of biological and chemical threats.
EPA will provide guidance, technical expertise and support to Federal, state and local governments
and other institutions  on building contamination (chemical and biological) prevention, treatment and
cleanup activities.  EPA will conduct the needed research and develop the scientific expertise to
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support this effort. The Agency has the expertise and hands-on knowledge to undertake research to
evaluate, develop and test technologies and approaches for building decontamination from chemical
and biological incidents including those for detection, pre-decontamination assessment, and post-
decontamination monitoring. The research would be planned in consultation with the appropriate
Agency offices and would  include the technology  transfer of the verified technologies  to the
Emergency Response Teams.

       Examples of needed  research include:

•      Technologies for rapid detection and measurement of contaminants to support pre- and post-
       cleanup monitoring and assessment, worker protection, risk assessment, and early warning of
       contamination events.
•      Technologies  for building decontamination  including: surface removal/disinfection,  air
       cleaning/filtration, and decontamination of internal .drinking water systems, HVAC duct
       work, etc.
•      Technologies and management practices for debris removal, decontamination of clean up
       equipment, and decontamination and disposal of debris and clean up disposables.
•   .   Development  of contaminant transport and fate  models for buildings and rapid risk
       assessment approaches for cleanup operations.
•      Implementation of a decontamination technology  verification center under the EPA
       Environmental Technology  Verification (ETV) Program to rapidly test  and verify the
       performance effectiveness of newly developed private sector technologies.
•      Initiation of a technology transfer program to rapidly disseminate research and technology
       performance information to emergency response organizations in the form of best practices,
       design and operational guidance, training, software and other appropriate vehicles.

FY 2003 Change from FY  2002 Enacted

EPM:                                   .                               •

       (+$26,455,500 and +139.6 FTE)  Redirection of resources from Superfund to EPM and
       increase of resources to irhplement the Brownfields infrastructure projects and categorical
       grants authorized under the new Brownfields legislation.

       (-$3,300,000, -5.0 FTE) Resources for the FY 2002 Homeland Security supplemental, used
       for one-time equipment purchases and emergency preparedness training, are not continued in
       FY2003.

••     (-$98,000) Decrease reflects transfer of the Ombudsman to Goal 10.

       (-$550,000) The FY 2003 request is $550,0000 below the FY 2002 Enacted budget level
       due to Congressional earmarks received during the appropriations process that are not part of
       the FY 2003 President's request.

••     (+$5,660,900) Resources, dollars and FTE, associated with rent are allocated in proportion
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       to Agency-wide  FTE  located in each goal, objective.    Resources, dollars and FTE,
       associated with utilities, security and human resource operations are allocated in proportion
       to Headquarters FTE located in each goal, objective. Changes reflect shifts in FTE between
       goals and objectives. Resources, dollars and FTE, associated with contracts and grants are
       allocated in proportion to Headquarters' contracts and grants resources located in each goal,
       objective.   Changes in these activities reflect  shifts  in resources between goals and
       objectives.   (Total changes - rent:   -$3,569,400, utilities: +$3,468,000,  Security:  -
       $9,103,900,  Nominal increases/decreases occurred in human resource operations, grants
       and contracts related activities.)

Superfund:

••     (-$94,813,500, -76.6 FTE)' Redirection of  the  Agency's  Brownfields resources from
       Superfund to the  EPM  and STAG appropriations.

       (+$10,000,000 and +20 FTE) This increase hi'EPA's  Homeland Security program will
       enhance the skills  of  the current response workforce  to respond to terrorist incidents.
       Specific efforts include: Establishing a West Coast Emergency Response Team to provide
       specialized  expertise  and support to  OSCs  in the  western regions of the country.
       Additionally, EPA will deliver advanced training,  conduct  a national  EPA  event
       planning/response exercise and purchase state-of-the-art response equipment.

••     (-$29,000,000) Reduction in support to Homeland Security response investment from FY
       2002 Emergency  Supplemental level.  Primary reductions are to numbers of planned regional
       response personnel, equipment  purchases, and training  for  Federal and state/local
       responders.

       (-$294,000) Decrease reflects transfer of the Ombudsman to Goal 10.

       (-$3,000,000) The FY  2003 request is $3,000,000 below the FY 2002 Enacted budget level
       due to Congressional earmarks received during the appropriations process that are not part of
       the FY 2003 President's request.

••     (-$5,660,900) Resources, dollars and FTE, associated with rent are allocated in proportion
       to Agency-wide  FTE  located in each goal, objective.    Resources, dollars arid FTE,
       associated with utilities, security and human resource operations are allocated in proportion
       to Headquarters FTE located in each goal, objective. Changes reflect shifts in FTE between
       goals and objectives. Resources, dollars and FTE, associated with contracts and grants are
       allocated in proportion to Headquarters' contracts and grants resources located in each goal,
       objective.   Changes in these activities reflect  shifts  in resources between goals and
       objectives.   (Total changes - rent:   -$3,569,400, utilities: +$3,468,000,  Security:  -
       $9,103,900.  Nominal increases/decreases occurred in human resource operations, grants
       and contracts related activities.)

LUST
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       (-$773,000) Decrease  reflects funding of the LUST appropriation to match FY 2002
       President's budget level.
STAG
     (+170,500,000) Resources provided for Brownfields infrastructure projects and categorical
     grants authorized under the new legislation

     (+$8,000,000) Resources provided for assessment and potential remediation of Homestake
     mine in the State of South Dakota.

     (-$3,000,000) The FY 2003 request is $3,000,0000 below the FY 2002 Enacted budget level
     due to Congressional earmarks received during the appropriations process that are not part of
     the FY2003 President's request.
Research

S&T
     (-$5,265,000) The F Y 2003 Request is $5,265,000 below the 2002 Enacted budget due to the
     Congressional earmarks received during the appropriations process which are not included in
     the 2003 President's Request.

     (-$1,000,000) This reduction reflects a  one-time accounting adjustment resulting from the
     Inspector General's audit decision on a grant to Clark Atlanta University.
Superfund
     (+$73,125,000) This reflects $75,000,000 in new funding, less the 2.5% tap ($1,875,000)
     mandated by the Small Business Innovative Research statute and shifted to Goal 08, Objective
     04. The $73,125,000 will be applied toward new research focusing on Homeland Security
     issues such as transfer of technologies and guidance on decontamination processes for
     buildings, evaluating existing and new cleanup and detection technologies, developing risk
     assessment methodologies, and producing rapid decontamination techniques and technologies
     for cleanup of contaminated buildings. These research efforts are critical in order to prevent
     and respond to future instances of bioterrorism.

     (+$650,000) This increase represents a refocusing of work to risk management research
     targeted at contaminated sediments issues from work that is being brought to a close on soil
     remediation activities.

     (-$650,000) This represents a refocusing from work that is being brought to a close on soil
     remediation activities to risk management research targeted at contaminated sediments issues.

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       (-$1,152,700) This represents a realignment of Minority Programs from the Superfund (Goal
       5,  Objective  1) appropriation into  the  Science and  Technology appropriation (Goal 8,
       Objective 3).  This will enhance the program by allowing for a broader scope of work to be
       done.
Annual Performance Goals and Measures

Leaking Underground Storage Tank Cleanups

In 2003   EPA and its partners will complete 22,500 Leaking Underground Storage Tank (LUST) cleanups for a cumulative total of
             approximately 313,300 cleanups since 1987.

In 2002   EPA and its partners will complete 22,000 Leaking Underground Storage Tank (LUST) cleanups for a cumulative total of
             approximately 290,000 cleanups since 1987.
In 2001   19,074 LUST cleanups were completed in F Y 2001.

Performance Measures:

LUST cleanups completed.
FY200I
 Actual
      19,074
FY.2002
Enacted
     22,000
FY 2003
Request
     22,500
cleanups
Baseline:  EPA completed a total of 249,760 LUST cleanups from 1987 through 2000.
Superfund Removal Response Actions

In 2003   Conduct 275 Superfund removal response actions for a cumulative total of 7,138 removal response actions since 1982.

In 2002   Conduct 275 Superfund removal response actions for a cumulative total of 6,863 removal response actions since 1982.

In 2001   EPA conduced 302 removal response actions, for a cumulative total of 6,588 over the life of the program.

Performance Measures:

Removal response actions.

Amount of liquid based waste removed.

Amount of solid waste removed.
FY 2001
Actual
302


FY 2002
Enacted
285
no target
no target
FY 2003
Request
275
no target
no target
removals
gallons
cubic yards
Baseline:  EPA completed a total of 6,286 removal response actions from 1982 through 2000.
Superfund Cleanups

In 2003   EPA and its partners will complete 40 Superfund cleanups (construction completions).

In 2002   EPA and its partners will complete 40 Superfund cleanups (construction completions). 47 construction completions were completed
             in FY 2001.
In 2001   EPA completed construction at 47sites, achieving 804 construction completions over the life of the program

Performance Measures:

Construction completions.                                           47               40
FY2001
 Actual
FY 2002
Enacted
FY 2003
Request
                                            40
                                  completions
Baseline:  EPA completed a total of 757 construction completions from 1982 through 2000.
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Superfund Cost Recovery

In 2003   Ensure trust fund stewardship by getting PRPs to initiate or fund the work and recover costs from PRPs when EPA expends trust fund
               monies.  Address cost recovery at all NPL and non-NPL sites with a statute of limitations (SOL) on total past costs equal to or
               greater than $200,000.

In 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.

In 2001

Performance Measures:                                          FY2001            FY 2002            FY2003
                                                               Actual'             Enacted             Request
Refer to DOJ, settle, or write off 100% of Statute of                        97.8                 100                 100      Percent
Limitations (SOLs) cases for SF sites with total unaddressed
past costs equal to or greater than $200,000 and report value
of costs recovered.
Baseline:  In FY 98 the Agency 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 Participat

In 2003   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.

In 2002   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.

In 2001

Performance Measures:                                         FY2001             FY2002             FY2003
                                                               Actual              Enacted             Request
Ensure fairness by making Orphan Share Offers at 100% of                   100                                         .     Percent
all eligible settlement negotiations for response work.

Provide finality for small contributors by entering into De                       15                                              Settlements
Minimis settlements and report the number of settlers.

PRPs conduct 70% of the work at new construction starts                     67.3                  70                 70      Percent
Baseline:  In FY 98 approximately 70% of new remedial work at NPL sites (excluding Federal facilities) was initiated by private parties.


RCRA Corrective Action

In 2003   257 (fora cumulative total of 1,252 or 73%) of high priority RCRA facilities will have human exposures controlled and 172 (for a
               cumulative total of 1,054 or 61%) of high priority RCRA facilities will have groundwater releases controlled.

In 2002   172 (for a cumulative total of 995 or 58%) of high priority RCRA facilities will have human exposures controlled and 172 (fora
               cumulative total of 882 or 51%) of high priority RCRA facilities will have groundwater releases controlled.

In 2001    EPA exceeded its RCRA corrective action goal for human exposures controlled with .an additional 179 facilities, and came close to
               achieving its goal for groundwater releases controlled with an additional  154 facilities.

Performance Measures:                                         FY2001             FY 2002             FY2003
                                                               Actual              Enacted             Request
High priority RCRA facilities with human exposures to                      179                 172                 257      facilities
toxins controlled.

High priority RCRA facilities with toxic releases to                          1.54                 172     "            172      facilities
groundwater controlled.
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Baseline:  EPA established a baseline of over 1,700 high priority corrective action facilities in January 1999.
Brownfield Site Assessment Grants

In 2003   EPA wijl provide additional site assessment funding to 74 new sites, and to 52 existing sites, resulting in a cumulative total of 3,350
               properties .assessed, the generation of 21,300 jobs, and the leveraging of $5.0 billion in cleanup and redevelopment funds since
               1995.

In 2002   EPA will provide additional site assessment funding to 38 new communities, and to 38 existing communities, resulting in a cumulative
               total of 3,100 properties assessed, the generation of 19,300 jobs, and the leveraging of $4.0 billion in cleanup and redevelopment
               funds since 1995.

In 2001   FY 2001 third quarter data shows cumulative totals of 2,594 site assessments, generation of 17,307 jobs and leveraging of $3.7 billion
               in cleanup and redevelopment funds.

Performance Measures:

Cumulative leveraging of cleanup and redevelopment funds.

Cumulative jobs generated.

Cumulative site assessments.
FY2001
Actual
$3.7 B
17,307
2,594
FY2002
Enacted
$4.0 B
19,300
3,100
FY 2003
Request
$5.0 B
21,300
3,350
funds leveraged
jobs generated
assessments
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.
Brownfield Community Support

In 2003   EPA will provide funding for 30 communities to capitalize revolving loan funds for a cumulative total of 182, provide funding for 10
               job training pilots for a cumulative total of 66 and 70% of graduates placed in jobs, and support 28 existing Showcase
               Communities.

In 2002   EPA will provide funding for 28 communities to capitalize revolving loan funds for a cumulative total of 152, provide funding for 10
               job training pilots for a cumulative .total of 56 and 70% of graduates placed in jobs, and support 28 existing Showcase
               Communities.

In 2001   46 communities capitalized 23 new and append 2 existing revolving loan funds. EPA awarded 12 additional showcase community
               designations, supporting a total of 28 showcase communities. Additionally, EPA awarded 9 new job training pilots.

Performance Measures:

Showcase communities.

Communities served by cooperative agreements to capitalize
revolving loan funds.

Job training pilots.

Cumulative communities served by cooperative  agreements
to capitalize revolving loan funds.

Cumulative job training pilots.
                           /
 Cumulative showcase communities.

Percentage of trainees placed.
FY2001
Actual
28
46
9




FY2002 FY2003
Enacted Request
communities'
agreements
pilots
152 182 communities
56 66 pilots
28 28 communities
70 70 percent
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.
Superfund Intermediate Cleanup Indicators
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 In 2003    EPA will increase the number of Superfund hazardous waste sites with human exposures and migration of contaminated groundwater
               under control.

 1 n 2002    EPA will increase the number of Superfund hazardous waste sites with human exposures and migration of contaminated groundwater
               under control.

 Performance Measures:                                         FY2001            FY2002            FY 2003
                                                               Actual             Enacted             Request
 Superfund hazardous waste sites with human exposures                                     no target                  10      sites
 controlled.

 Superfund hazardous waste sites with groundwater migration                                no target                  10      sites
 controlled.
 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.


 Tribal Cleanup Assistance

 In 2003    Complete 45 Leaking Underground Storage Tank (LUST) cleanups in Indian Country for a cumulative total of 617 cleanups since
                1987.

 In 2003    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 572 cleanups since
                1987.

 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 2001    30 LUST cleanups were completed in Indian Country in FY 2001.

 In 2001    FY 2001 accomplishments in Indian Country include 11 site assessments, support to 78 tribes through 27 cooperative agreements,
                provision of S3.8M for capacity building, and tribal leadership or support in responding to 26% of Superfund sites impacting
                Indian Country.

 Performance Measures:                                         FY2001            FY2002            FY2003
                                                               Actual              Enacted             Request
 LUST cleanups in Indian Country,                                         30                 40                  45      cleanups

 Site assessments (PA/SI) conducted in Indian country.                        11            no target            no target      assements

 The number of tribes supported by cooperative agreements                    78           no target            no target      agreements
 with tribes/intertribal consortia.

 Funding provided for building tribal capacity.                            S3.8M           no target            no target      funding

• Percentage of Superfund sites impacting Indian country                      26           no target            no target      involvement
 where a tribe is involved as either the lead or support agency.



 Baseline:  EPA completed a total of 532 LUST cleanups in Indian Country from 1987 through 2001. The baseline for Superfund activities is
                currently under development.


 Homeland Security

 In 2003    EPA will complete the remaining 27 critical facility vulnerability assessments, priortize the risks associated with each facility, and
                begin mitigation.

 In 2003    EPA will improve its overall homeland security readiness capability by 20% by performing enhanced training and exercises and



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               providing state-of-the-art equipment. Percentage improvement will be determined by an annual readiness survey and
               inspections.

In 2002   Establish a baseline of overall homeland security readiness capabilities through an annual survey mechanism.

Performance Measures:                                          FY2001             FY2002             FY2003
                                                               Actual              Enacted             Request
Percentage improvement in homeland security readiness.                                                               20      percent

Percentage of LEPCs that have incorporated homeland                                      no target            no target      percent
security prevention and planning into community
contingency plans.

Percentage pf states that have incorporated homeland security                                no target            no target      percent
planning into state response systems.
Baseline:  Based on FY 2002 performance, baseline is zero for number of critical Agency facilities that have had vulnerability assessments.


Homeland Security

In 2003   EPA will complete the remaining 27 critical facility vulnerability assessments, priortize the risks associated with each facility, and
               begin mitigation.

In 2003   EPA will improve its overall homeland security readiness capability by 20% by performing enhanced training and exercises and
               providing state-of-the-art .equipment. Percentage improvement will be determined by an annual readiness survey and
               inspections.

In 2002   Establish a baseline of overall homeland security readiness capabilities through an annual survey mechanism.

Performance Measures:                                          FY2001             FY2002             FY2003
                                                               Actual              Enacted             Request
Number of vulnerability assessments performed.                    •                                                  27      Assessments
Baseline:  Based on FY 2002 performance, baseline is zero for number of critical Agency facilities that have had vulnerability assessments.
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Research


Scientifically Defensible Decisions for Site Clean

In 2003   To ensure cost-effective and technically sound site clean-up, deliver state-of-the-art guidance and methods to EPA and stakeholders
               for risk management of fuel oxygenates; organic.and inorganic contamination of sediments, ground water and/or soils; and oil
               spills.

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 new soil sampling methods, soil contaminant screening levels for chemicals that pose ecological risks, and generate specific
               statistical  distributions for factors used in human health exposure assessments.

In 2001   EPA provided technical information to support scientifically defensible and cost-effective decisions for clean-up otcomplex sites,
               hard-to-treat wastes, mining, oil spills near shorelines, and Brownfields to reduce risk to human health and the .environment.

Performance Measures:                                          FY2001             FY2002            FY2003
                                                                Actual              Enacted             Request
Interim report on monitored natural attenuation in sediments                     1                                               document

Progress report on Field Demonstration of Chemically-  .                       1                                               report
Enhanced Subsurface Dense, Non-Aqueous Phase Liquid
Extraction Technologies

Publish a technical Resource Document on the                                 1                                               document
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.                          0                                              report

Annual SITE Program report to Congress detailing 4-6                                             1                   1      report
innovative approaches, their cost savings and future
direction; reports summarizing pilot scale evaluation of in-
situ remedies for solvents.

Report on children's .soil ingestion rates derived from                                               1              .           report
environmental and  biological measurements of arsenic.

Report on ecotoxicity soil screening  levels for mammals,                                            1              -            tech report
birds, soil plants, and soil biota for use in ecological risk
assessments at Superfiind sites.

Report: Permeable reactive barriers for ground water                                                                   1      report
remediation; Incorporating the results of long-term
performance studies in remedy selection for contaminated
sites.                                                                                                       .
Baseline:  Deliver state-of-the -art guidance and methods to EPA and other stakeholders for risk management of fuel oxygenates; organic and
                inorganic contamination of sediments, ground water and/or soils; and oil spills to ensure cost-effective and technically sound site
                clean-up. Baseline: There are a number of contaminants and/or media at Superfend, Leaking Underground Storage Tank (LUST)
                sites that are difficult to clean up. Methyl left-Butyl Ether (MTBE), a fuel oxygenate found increasingly in US ground
                water/drinking  water, requires clean up to low (ppb) levels but clean-up is expensive because of its chemical, physical and
                biological properties. Polynuclear aromatic hydrocarbons (PAH) are  found at wood preserver sites and gas manufacturing plants,
                contain carcinogenic components and are difficult to cost-effectively clean up due to their high molecular weight. Arsenic (As)
                in ground water requires clean up to low levels due to its impacts on humans and ecological systems. As treatment systems which
                perform for long periods of time are needed. We also need to understand the reasons why ground water As concentrations may
                naturally reduce over time. Bulk shipment/storage of non-petroleum oils (e.g. vegetable oils) can result in spills/leaks that have
                significant impacts on fresh water and marine environments. Inexpensive techniques are needed to clean up these spills without
                doing further harm to the environment. Research involving pilot and  full scale treatment testing/demonstrations is particularly
                important when addressing these research needs because such research will lead to near-term options for effective, reasonable-
                cost clean-ups.
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Verification and Validation of Performance Measures
Performance Measure (PM): LUST cleanups completed.

Performance Database: EPA does not maintain a national database for this information.

Data Source: Designated state agencies submit semi-annual progress reports to the EPA regional
offices.

QA/QC Procedures:  EPA regional offices  verify the data and then forward them to the EPA
Headquarters, where staff examine the data and resolve any discrepancies with the regional offices.
The data are displayed in a document on a region-by-region basis, which allows regional staff to
again verify their data.

Data.Quality Reviews: None.

Data Limitations:  This process relies on accuracy and completeness of state records.

New/Improved Data or Systems:  None.

Performance Measure (PM): Superfund construction completions.

Performance Database: CERCLIS is the official database used by the Agency to track, store, and
report Superfund site information.

Data Source: Data is entered on a rolling basis by EPA.

QA/QC Procedures: To ensure data accuracy  and control, the following administrative controls are
in place: 1) Superfund/Oil Implementation Manual (SPIM), the program management manual which
details-what data must be reported; 2) Report Specifications, which are published for each report
detailing how reported data are calculated; 3) Coding Guide, which contains technical instructions to
such data users  as regional Information Management Coordinators  (IMCs), program  personnel,
report owners and data input personnel; 4) Quality Assurance (QA) Unit Testing, which is an
extensive QA check against report specifications; 5) QA Third Party Testing, an extensive test made
by an independent QA tester to ensure that the report produces data in conformance with the report
specifications; 6) Regional CERCLIS Data Entry Internal Control Plan, which includes:  a) regional
policies and procedures for entering data into CERCLIS, b) a review process to ensure that all
Superfund accomplishments are supported by source documentation, c) delegation of authorities for
approval of data input into CERCLIS, and, d)  procedures to ensure that reported accomplishments
meet accomplishment definitions; and  7) a  historical lockout feature that  has been added to
CERCLIS so that changes in past fiscal year data can be changed only by approved and designated
personnel and are logged to a change log report.
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Data Quality Review: Two audits, one by the Office of the Inspector General (OIG) and the other
by the General Accounting Office (GAO), were done to assess the validity of the data in CERCLIS.
The  OIG audit report "Superfund Construction Completion Reporting" (No. E1SGF7-05-0102-
8100030) was prepared to verify the accuracy of the information that the Agency was providing to
Congress and the public.  The OIG  report concluded that the Agency "has good management
controls to ensure accuracy of the information that is reported," and "Congress and the public can
rely  upon the information  EPA provides regarding construction completions."  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.

Data Limitations: No data limitations have been identified.

New/Improved Data or Systems: In 2003, the Agency will continue its efforts begun in 1999 to
improve the Superfund  Program's technical information .by incorporating more site remedy
selection, risk, removal response, and  community involvement information in CERCLIS. Efforts to
share information among the federal, state,  and tribal programs to further enhance the Agency's
efforts to efficiently identify, evaluate  and remediate Superfund hazardous waste sites will continue.
 In 2003, the Agency will also establish data quality objectives for program planning purposes and to
ascertain the organization's information needs for the next five years. Adjustments will be made to
EPA's current architecture and business processes to better meet the need.

Performance Measure (PM): High  priority RCRA facilities with human exposures to toxins
controlled; High priority RCRA facilities with toxic releases to groundwater controlled.

Performance  Database:   The Resource  Conservation  Recovery  Act Information System
(RCRAInfo) is the national database which supports EPA's RCRA program. 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 a Corrective
Action Module that tracks the status of facilities that require, or may require, corrective actions. 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.

Human exposures controlled and toxic releases to groundwater controlled are used to summarize and
report on the facility-wide  environmental conditions at the RCRA Corrective Action Program's
highest priority facilities. The  environmental indicators  are used to track the RCRA program's
progress on getting highest priority contaminated sites under control. Known and suspected sitewide
conditions are evaluated using a series of simple questions and flow-chart logic to arrive at a
reasonable, defensible  determination. These questions were issued as 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.

Data Source: EPA regions and authorized states enter data on a rolling basis.
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QA/QC Procedures:  States and Regions generate the data and manage data quality related to
timeliness and accuracy (i.e., the environmental conditions and determinations are correctly reflected
by the data). Within RCRAInfo the application software enforces structural controls that ensure that
high-priority national components of the data are properly entered.  RCRAInfo documentation,
which  is available to all users  on-line,  provides  guidance to  facilitate the  generation and
interpretation of datai 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  Reviews:  GAO's 1995  Report on PA's Hazardous Waste Information System
reviewed whether national RCRA information systems support meeting the primary objective of
helping EPA and states manage the hazardous waste program.  Recommendations coincide with
ongoing internal efforts (WTN/Informed) to improve  the definitions of data collected, ensure that
data collected provide critical information and minimize the burden on states

Data Limitations: No data limitations have been identified. As discussed above, environmental
indicator determinations are made by the authorized  states and EPA regions based on a series of
standard questions and entered directly into RCRAInfo. EPA has provided guidance and training to
states and regions to help ensure consistency in those determinations. High priority facilities are
monitored on a facility-by-facility  basis and the QA/QC procedures identified above are in place to
help ensure data validity.

New/Improved Data or Systems:  EPA has successfully implemented new tools for managing
environmental information to support federal and state programs, replacing the old data systems (the
Resource Conservation and Recovery Information System and the Biennial Reporting System) with
RCRAInfo.  RCRAInfo allows for tracking of information'on the regulated universe of RCRA
hazardous waste handlers, such as facility status, regulated activities, and compliance history. The
system also captures detailed data on the generation of hazardous  waste from large quantity
generators and on waste  management practices by treatment,  storage, and disposal facilities.
RCRAInfo is web accessible, providing a convenient user interface  for federal, state and local
managers, encouraging development of in-house expertise for controlled cost, and using commercial
off-the-shelf software to develop reports from database tables.

Performance  Measure (PM):   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 economics-related results, such as properties assessed, acres cleaned up, and jobs
generated.  BMS uses data gathered from Brownfield pilots' quarterly reports and from the EPA
regions. The Comprehensive Environmental Response, Compensation, and Liability Information
System (CERCLIS)  records  regional  accomplishments on brownfields assessments in  the
Brownfields module. This database module tracks Targeted Brownfields Assessments (TBAs) on a
property-specific basis. This module contains information such as: the property's operational status
(e.g., "Active" or "Inactive"), prior use (e.g., "Disposal," "Production Facility,"  or "Midnight
Dump"), the actual start and completion dates for the TBA, the phase of the TEA, and the outcome

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or result of the TBA.

Data Source: EPA headquarters and regional staff enter data on a rolling basis. Data are 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.

Data Quality Reviews: The program and external organizations have conducted several data quality
reviews. GAO conducted the most recent, "Brownfields: Information on the Programs of EPA and
Selected States" (GAO-01-52. December 15, 2000). GAO recommended that EPA continue to
review data reported by recipients before the Agency'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.
GAO also recommended that EPA regions monitor and work to improve recipients' reporting of data
on key results measures.

Data Limitations: The reporting of results of the Brownfields pilots 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. Consequently, 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 may not require private sector
entities, which do not  receive  EPA financial assistance, to provide information relating to such
accomplishment measures as redevelopment dollars invested or numbers of jobs created. These
constraints may lead to an underreporting of accomplishments.

New/Improved Data or Systems:  In September 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 and the applicable OMB control number
for quarterly reporting by assessment pilot recipients.  EPA also is 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, EPA has implemented GAO's recommendation
that the Agency make it clear to recipients that follow-on awards depend on reported results.

Performance Measure (PM): Refer to DOJ, settle, or writeoff 100% of Statute of Limitations
(SOLs) cases for Superfund sites with total unaddressed past costs equal to or greater than $200,000
and report value of costs recovered.

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data  Source: Automated EPA system; headquarters and EPA regional offices enter data into
CERCLIS

QA/QC Procedures: To ensure data accuracy and control, the following administrative controls are

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in place:  1) Superfund/Oil Implementation Manual (SPIM), the program management manual that
details what data must be reported; 2) Report Specifications, which are published for each report
detailing how reported data are calculated; 3) Coding Guide, which contains technical instructions to
such data users as regional Information Management Coordinators (IMCs), program personnel,
report owners, and data input personnel; 4) Quality Assurance (QA) Unit Testing, an extensive QA
check against report  specifications; 5) QA  Third Party Testing, an extensive test made by an
independent QA tester to ensure that  the report produces data in conformance with the report
specifications; 6) Regional CERCLIS Data Entry Internal Control Plan, which includes: a) regional
policies and procedures for entering data into CERCLIS, b)  a review process to ensure  that all
Superfund accomplishments are supported by source documentation, c) delegation of authorities for
approval  of data input into CERCLIS, and, d) procedures to ensure that reported accomplishments
meet accomplishment definitions;  and 7) a historical  lockout feature that has  been  added  to
CERCLIS so that changes in past fiscal year data can be changed only by approved and designated
personnel and are logged to a change-log report.

Data Quality Review: The  IG annually reviews  the end-of-year CERCLA data, in an informal
process, to verify the data supporting the performance measure. Typically, there are  no published
results.

Data Limitations; None

New/Improved Data or Systems: None

FY 2003  Congressional Performance Measure (PM):  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; headquarters and EPA regional Offices enter data into
CERCLIS

QA/QC Procedures: To ensure data accuracy and control, the following administrative controls are
in place:  1) Superfund/Oil Implementation Manual (SPIM), the program management manual that
details what data must be reported; 2) Report Specifications, which are published for each report
detailing  how reported data are calculated; 3) Coding Guide, which contains technical instructions to
such data users as regional Information Management Coordinators  (IMCs), program personnel,
report owners, and data input personnel; 4) Quality Assurance (QA) Unit Testing, an extensive QA
check against report  specifications; 5) QA Third Party Testing, an extensive test made by an
independent QA tester to ensure that  the report  produces data  in conformance  with the report
specifications; 6) Regional CERCLIS Data Entry Internal Control Plan, which includes: a) regional
policies and procedures for  entering data into CERCLIS, b) a review process to ensure  that all
Superfund accomplishments are supported by source documentation, c) delegation of authorities for
approval  of data input into CERCLIS, and, d) procedures to ensure that reported accomplishments
meet accomplishment definitions; and 7)  a historical lockout  feature  that has been added to

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CERCLIS so that changes in past fiscal year data can be changed only by approved and designated
personnel and are logged to a change-log report.

Data Quality Review:  The IG annually reviews the end-of-year CERCLA data, in an informal
process, to verify the data supporting the performance measure. Typically, there are no published
results.

Data Limitations: None

New/Improved Data or Systems: None

Research

Verification and Validation of Performance Measures

FY 2003 Congressional Performance Measure (PM): Provide the SITE Program Report to
Congress

Performance Database: Program output, no internal tracking system

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Reviews: Report

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 leaking underground storage
tanks (LUST). States and territories use the LUST Trust Fund to administer their corrective action
programs, oversee cleanups by responsible parties, undertake necessary enforcement actions, and
pay for cleanups in cases where a responsible party cannot be found or is unwilling or unable to pay
for a cleanup.  Most states have cleanup funds that cover the majority  of owners and operators'
cleanup costs.  These state funds are separate from the LUST Trust Fund.

     State LUST programs  are key to achieving the objectives and long-term strategic goals.
Except in Indian Country, EPA relies on state agencies to implement the LUST program, including
overseeing cleanups by responsible parties and responding to emergency LUST releases. LUST
cooperative  agreements awarded by  EPA are directly given  to the  states  to  assist them in

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implementing their oversight and programmatic role.

Superfttnd

     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, in close consultation and
coordination with  EPA,  essential services in areas where  the Agency does not possess the
specialized expertise. 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 FUDs 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 through
site-specific interagency  agreements. These  Federal partners  have the technical design and
construction expertise and contracting capability needed to assist EPA regions in implementing most
of Superfund's high-cost Fund-financed remedial action projects. These two agencies also provide
technical on-site support to regions in the enforcement oversight of numerous construction projects
performed by PRPs.

     The Superfund response and Federal Facilities enforcement programs work closely with other
Federal agencies (e.g., DOD, DOE, DOI,  etc.) to  clean up their facilities  under the Superfund
program. EPA also works with  states and Indian Tribes as key partners hi  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 waste  response capability.  EPA  assists the states  in developing their  CERCLA

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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.

      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 Homeland Security
requiring participation in a number of inter-agency workgroups.  The Environmental Response Team
Center West (ERTC-West) will provide emergency response resources to support FBI-led response
teams in a terrorism event; response action includes threat assessment, site evaluation and removal
actions,  agent identification,  hazard  detection  and  reduction,  environmental  monitoring,
decontamination and long term site restoration.  ERTC-West will maintain an around-the-clock
emergency response activation system to assist the EPA Western Regions and program offices in
responding to environmental emergencies and  uncontrolled oil and hazardous wastes sites.  The
ERTC-West will also conduct training for Federal, state and local government officials and private
industry representatives in the latest oil and hazardous substance response technology.

      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/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 fifty states and the American
Territories for drinking and groundwater samples, and air and milk analysis.

      EPA partners with other Federal agencies, state and local governments, and private industry to
fulfill Superfund program priorities when a site is radioactively contaminated.  Under CERCLA,
radioactively contaminated sites are addressed in a  manner consistent  with how chemically
contaminated sites are addressed, accounting for the technical differences. The Radiation program
provides radiological scientific and technical expertise and leadership in evaluating projects and
providing field and laboratory support.

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.

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     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 FY 2003. 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 2003 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-
base.d organizations, community colleges, universities, and private sector non-profit groups. To
date, Brownfields pilots have leveraged over 12,000 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
economic reuse. With the requested increase in FY 2003, EPA will provide funding  to 74 new
assessment pilot cooperative agreements and support  52 existing  brownfields assessment  pilot
cooperative agreements,  provide  technical assistance  to 28  existing brownfields  showcase
communities, provide support to 30 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,

RCRA

     The Agency maintains a close relationship  with the state  agencies that are authorized to
implement the Resource Conservation and Recovery Act (RCRA) corrective action program. EPA
expects states to achieve the same level of Federal standards as the Agency,  including annual
performance goals of human exposures and groundwater releases controlled. As part of the state
grant process, Regional offices negotiate with the states their progress set in meeting the corrective
action program objectives of the GPRA goals.                         :
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     Encouraging states to become authorized for the RCRA Corrective Action program remains a
priority. Currently, thirty-nine states and territories have the authority to implement the program.
EPA expects several additional states to gain authorization in the next one to two years. EPA also
encourages states to use alternate (non-RCRA) authorities to accomplish the goals of the corrective
action program. These include state Superfund and voluntary programs.

     The RCRA Corrective Action program also coordinates closely with other Federal agencies,
primarily the Department of Defense and Energy, that have many sites  in the corrective action
universe. Encouraging Federal Facilities to meet environmental indicators remains a top priority.

Research

     EPA expends substantial effort coordinating with other agencies to conduct risk management
and assessment research. These activities include work with the Department of Defense (DOD) in
their Strategic Environmental Research and Development Program and the Environmental Security
Technology Certification Program, the Department of Energy (DOE), and the Office Health and
Environmental Research. EPA also conducts collaborative field demonstrations (e.g., through the
SITE program) and laboratory research with  DOD,  DOE,  and the Department of  Interior
(particularly the U.S. Geological Survey - USGS) to improve characterization and risk management
options for dealing with subsurface contamination.  Collaborations with external organizations
provide the Agency with more opportunity to understand and address a variety of complex waste/site
characterization and remediation problems and, consequently, improve the Agency's ability to meet
its objective of quicker and more cost-effective site cleanups.

     Other research efforts involving coordination include: the unique controlled-spill field research
facility that was designed in cooperation with the U.S. Bureau of Reclamation. Also, geophysical
research experiments and development of software for subsurface characterization and detection of
contaminants are being conducted with the USGS  and DOE's  Lawrence  Berkeley National
Laboratory.  These experiments include the use of a controlled spill unit in which solvents can be
spilled and their subsequent movement is monitored using experimental ground penetrating radar,
borehole dielecrtie  techniques,  complex  resistivity, seismic  techniques,  and eletromagnetic
techniques.

     The USGS also has a number of programs, such as the Toxic Substances Hydrology Program,
that  support studies related to contamination of surface water and groundwater by  hazardous
materials. Groundwater modeling of MTBE is being conducted in collaboration with New York
State activities to clean up sites. Also, Remediation Technology Development Forums (RTDFs) 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 also 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

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mandate, the Agency for Toxic Substances and Disease Registry (ATSDR) was established to
provide critical health-based information to assist EPA in making effective cleanup decisions.

     The Rapid Commercialization Initiative (RCI) is a Federal/state/private cooperative effort to
expedite the application of new environmental technologies. Participating Federal agencies include
the Department of Commerce, 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

•    Solid Waste Disposal Act as amended by Hazardous and Solid Waste Amendments of 1984 to
     the Resource Conservation and Recovery Act of 1976

•    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

•    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)                   •   .  .

     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

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Research
      Comprehensive Environmental Response, Compensation, and Liabilities Act (CERCLA)




      Response Conservation and Recovery Act (RCRA)




      Oil Pollution Act (OPA)




      Brownfields Revitalization and Environmental Restoration Act
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

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

Objective: 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
Hazardous Substance Superfund
Oil Spill Response
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$160,707.2
$97,901.0
$91.1
$13,678.3
$8,730.9
$40,305.9
760.3
FY 2002
Enacted
$165,842.9
$102,477.9
$217.1
$13.596.0
$10,095.3
$39,456.6
807.8
FY 2003
Request
$167,261.2
$103,863.6
$226.3
$14,166.0
$9,548.7
$39,456.6
800.4
FY 2003 Req.
v. FY 2002 Ena.
$1,418.3
$1,385.7
'$9.2
$570.0
($546.6)
$0.0
-7.4
                                    Key Program
                                (Dollars in Thousands)

Administrative Services
Civil Enforcement
Community Right to Know (Title III)
Compliance Assistance and Centers
Congressionally Mandated Projects
EMPACT
Facilities Infrastructure and Operations
Hazardous Waste Research
Homeland Security
Legal Services
Management Services and Stewardship
Oil Spills Preparedness, Prevention and
Response
Project XL
RCRA Improved Waste Management
FY2001
Enacted
$1,003.0
$1,264.7
$4,861.1
$267.9
$1,696.3
$160.5
$8,350.2
$6,990.0
$0.0
$2,249.0
$1,350.8
$11,948.9
$126.4
$62,477.7
FY 2002
Enacted
$0.0
$1,512.0
$4,968.4
$264.8
$2,100.0
$0.0
$9,712.1
$9,088.3
$7.0
$2,451.1
$2,135.7
$11,795.4
$0.0
$61,174.6
FY 2003
Request
$0.0
$1,538.6
$4,953.1
$271.4
$0.0
$0.0
$10,182.4
$9.548.7
$0.0
$2,633.3
$2,316.8
$12,332.2
$0.0
$61,860.0
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$26.6
($15.3)
$6.6
($2,100.0)
$0.0
$470.3
$460.4
($7.0)
$182.2
$181.1
$536.8
$0.0
$685.4
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RCRA State Grants
Radiation
Regional Management
Risk Management Plans
UST State Grants
Underground Storage Tanks (UST)
FY 2001
Enacted
$27.433.2
$7,35.5.6
$150.0
$8,005.5
$11,918.4
$7,045.8
FY 2002
Enacted
$27,538.2
$7,000.5
$177.8
$7,202.9
$11,918.4
$6,795.7
FY 2003
Request
$27,538.2
$7,519.3
$176.4
$7,446.0
$11,918.4
$7,026.4
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$518.8
($1-4)
$243.1
$0.0
$230.7
 FY 2003 Request

Underground Storage Tank Program

       The underground storage tanks (UST) program works in partnership with states to prevent,
detect and address releases from USTs containing petroleum and hazardous substances. In FY 2003,
the Agency's goal for the UST program is to protect our nation's groundwater by promoting and
enforcing  compliance with these regulatory requirements.  While  the vast majority  of the
approximately 700,000 active tanks have the proper equipment, significant work remains to ensure
UST owners and operators properly maintain and operate these USTs. The Agency's primary role is
working  with states to  promote compliance  with spill,  overfill,  and corrosion  protection
requirements, and ensuring that leak detection requirements are emphasized as a national priority.
The Agency's role extends to all federally regulated UST systems, including those on private and
public property, tribal lands, and federal facilities.

       Continuing to improve owners' and operators' compliance with the UST regulations is one of
the Agency's national initiatives.  The Agency will build upon its work with states to achieve
improved compliance and to develop national and  Regional compliance targets through FY 2005
with the goal of achieving improved compliance in each state every year. The Agency will work
with states to obtain commitments to increase their inspection and enforcement presence if state-
specific targets are not met. The Agency and the states will use innovative outreach and education
tools such as multi-site agreements with Federal, state, municipal, Tribal, or private UST owners to
bring more tanks into compliance.  An example of a multi-site agreement is when a single tank
owner with multiple sites agrees to bring all sites into compliance and keep them in compliance.
The Agency will also provide technical assistance tools, improved guidance and training to owners,
operators and inspectors to foster improved operational compliance with the requirements.

       In FY 2003, the Agency will update available information about the performance of new or
upgraded UST  systems to determine how  well existing  systems are preventing and  detecting
releases, analyze leak autopsy data to quantify the frequency of releases by source and cause, foster
long-term efforts to further analyze the performance of UST systems, and identify  any needed
options for improving performance.  While the Federal and state UST requirements have led to
substantially  improved UST systems  and 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.  The presence of methyl-tertiary-butyl-ether (MTBE) in gasoline increases the
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importance of preventing and rapidly detecting releases because MTBE cleanup can cost 100 percent
more than cleanup involving other gasoline contaminants.

       In FY 2003, 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.

Chemical Emergency Preparedness and Prevention

       The Agency's chemical emergency preparedness and prevention program seeks to decrease
the risks associated with the manufacture, transportation, storage and use of hazardous chemicals.
The program is primarily responsible for implementing the Risk Management Program and General
Duty Clause authorities of the Clean Air Act, and the emergency preparedness authorities of the
Emergency Planning and Community Right-to-Know Act (EPCRA). The program also implements
right-to-know initiatives stemming from EPCRA to inform the public about chemical hazards and
supports actions at the local level to reduce risk. The cornerstone of the program is a belief that the
operators of facilities who have hazardous chemicals are primarily responsible for the safe handling
of those chemicals.  In addition, since the risks posed by these facilities are local issues, state and
local governments, as well as the community, play a critical role in risk reduction.

       All Americans benefit from an effective chemical safety program because hazardous
chemical substances are virtually everywhere, and chemical accidents are an ever-present danger.
EPA estimates that  over 500,000 facilities nationwide have significant quantities of hazardous
chemicals subject to EPCRA requirements. The facilities subject to the RMP reported over 1,900
accidents   over  the   past   five-year  period   involving   deaths,   injuries,   significant
property/environmental damage and/or evacuations/shelter-in-place.

Assisting Facilities with Their Responsibilities

       Section 112(r) of  the Clean Air Act  requires  approximately 15,000 facilities to develop
comprehensive RMPs and submit them to EPA,  state agencies,  and  local emergency planning
committees (LEPCs). Through this program, Federal, state, and local agencies and the general public
have access to large amounts of information on the presence of chemicals in every community and
the potential hazards those chemicals present.

       Each RMP identifies and assesses the hazards posed by on-site chemicals. It also provides a

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five-year facility accident history and outlines an accident prevention program and an emergency
response plan.  The statutory deadline for filing RMPs was June 1999, While the numbers are still
being tallied, EPA estimates that it will exceed its goal of 90% compliance by the end of FY 2002.

       The requirements of the Risk Management Program regulations were built on practices
currently used in many industries for process safety management. Each RMP describes the process
safety management systems used by a facility for preventing accidents and documents the facilities'
compliance with the regulation. A program priority in FY 2003 will be to transition the focus to
auditing the quality of the risk management plans submitted while continuing to look for facilities
that have not submitted their RMPs.

       The Clean Air Act requires EPA to establish a system to audit RMPs. The audit system is
used to continuously improve the quality of risk management programs as well as check compliance
with-the requirements. EPA regional offices will continue to manage RMP programs in those states
that have not accepted delegation. In 2003, the Agency and other implementing agencies will
perform audit obligations through a combination of desk audits of RMP plans and on-site facility
inspections. A total of 300 audits will be conducted during this period. Audit selection will be based
upon several criteria, including accident history, patterns of noncompliance, types and quantities of
chemicals, and geographic location.

       Due to the complexity and large number of RMP audits, EPA is exploring a third party audit
program, where EPA would give RMP facilities the option to voluntarily undergo an audit by a
qualified third party auditor in exchange for certain regulatory incentives, such as lower future audit
                   States Implementing the RMP Program
  25


UJ
Jj 15
55
  1.0

   5

   0
                                                                      25
                                                           17
                                                •15
                                      10
               1998
1999        2000       2001       2002
                Years
                                                               2003
and enforcement priority. Financial incentives may also exist via the participation of insurance
company representatives as third party auditors (lower premiums). EPA intends to have the third
party audit program operational in FY 2003.

       In FY 2003, in the regulatory area, the program expects to complete the second phase of
streamlining EPCRA's reporting requirements and will complete regulatory action on changes
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resulting from a statutorily required review of the RMP chemicals list. This review is intended to
improve the scientific basis for listing chemicals, and add or delete chemicals based on the technical
criteria for listing chemicals under the program.

Building State and Local Capabilities

       One of EPA's vital roles is to help communities  implement accident  prevention and
emergency preparedness programs. LEPCs (3,400 established under EPCRA) serve as the focal
point for discussions on reducing chemical risks at the local level. Under the EPCRA and RMP
programs, LEPCs take chemical inventory information,  and information on how facilities are
reducing the risk of accidents, and integrate it into their emergency plans and community right-to-
know programs.  In FY 2003, EPA will support LEPC efforts.by providing tools, technical
assistance and guidance to better enable them to use the information to reduce risks. EPA will also
continue an initiative to improve and enhance  emergency preparedness and prevention in Tribal
communities.

       EPA, in partnership with states, will promote implementation of the RMP program during
FY 2003 (see chart).  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 FY 2003 goal is for eight additional states to manage an RMP program, bringing the total
number of authorized states to twenty-five.

       In an effort to help implementing agencies, states,  and prospective third party auditors
acquire or improve skills required to conduct audits, EPA has identified an RMP audit curriculum.
The training will be offered extensively throughout the country in FY 2003.

       EPA will continue an initiative to analyze data contained in the RMPs.  The Agency is
examining trends and patterns in such areas as industry sector, facility size, geographic region, and
chemicals. In particular,  EPA  is using epidemiological methods to analyze the RMP's five-year
accident history data to explore accident risk factors and precursors.
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Continuous Learning to Improve Safety

       In FY 2003, EPA will continue to initiate ways of improving safety by studying hazards and
providing outreach to industry, government and the public to enhance application of chemical safety
measures. The program focuses on lessons learned from accidents and issues case studies and
chemical safety alerts to reduce the risk of future accidents,

Relationship wim Chemical.Safety Board

       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 that
delineates each agencies' role and working relationship.  In FY 2003 EPA expects to continue
activities of responding to CSB recommendations that result from investigations. For example, EPA
is currently 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.

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 into navigable waters, adjoining
shorelines, and exclusive economic zones of the United States.  Based on data obtained from the
National Response Center, each year more than 24,000 oil spills occur in the United States, over half
of them within the inland zone over which EPA has jurisdiction. On average, one spill of greater
than 100,000 gallons occurs every month from approximately 465,000 EPA-regulated oil storage
facilities and the entire oil transportation network. Oil spills contaminate drinking water supplies;
cause fires and explosions; kill fish, birds, and other wildlife; destroy habitats and ecosystems; and
impact the food chain.  There are also serious economic consequences of oil spills because of their
impact on commercial and recreational uses of water resources and cleanup costs.

       The oil spill program prevents, prepares for, responds to, and monitors oil spills. EPA
protects U.S. waters through oil spill prevention, preparedness, and enforcement activities associated
with the 465,000 non-transportation-related oil storage facilities EPA regulates through its pollution
prevention program. In addition to its pollution prevention responsibilities, EPA serves as the lead
responder for the inland zone for all spills, including noh-transportation-related 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 obtain reimbursement for site-specific spill  response activities.

       The oil spill  program establishes requirements to prevent and prepare for spills at oil storage
facilities subject to its regulations.  The Oil and Hazardous Substances National Contingency Plan
(NCP) is the  Nation's blueprint  for the federal response to discharges of oil and hazardous
substances. The Spill Prevention, Control, and Countermeasures (SPCC) regulation and the Facility

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Response Plan (FRP) regulation chiefly compose EPA's regulatory framework.  The oil spill
program is also responsible for publishing the National Product Schedule and subpart J of the NCP,
which is a listing of dispersants, other chemicals, and other spill mitigating devices that may be used
during response to oil discharges.

       All regulated oil storage facilities must prepare SPCC plans. These facilities range from
hospitals and apartment complexes storing heating oil to large tank farms, 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). An additional
600 facilities will be in compliance with SPCC provisions in 2003 as a result of EPA's activities, for
a cumulative total of 3,495 facilities since 1997. 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 FY 2003, EPA will review a small
number of FRPs. These EPA reviews are triggered by a large spill, a spill at a particularly high risk
facility, or poor performance during an oil response exercise.

       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 aresponse, describe unique geographical features of
the area covered, and identify available response equipment and its location.

       In FY 2003, EPA will continue efforts to revise and implement the SPCC regulation. EPA is
planning to  revise SPCC regulations, to reflect a more 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 six years (1996-2001), EPA has received and evaluated approximately
56,000 oil spill notifications in the inland zone, served as lead responders at approximately 783 oil
spills, and shared response responsibility with another party at approximately 1,145 responses.

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. The RCRA program, working in partnership with
states, industry, and Tribes reduces the risk  of human exposures  to hazardous, industrial
nonhazardous, and municipal solid wastes.  Our  most current information shows that each year
communities generate approximately 230 million tons of municipal solid waste and that industries
generate 40 million tons of industrial hazardous waste (not including wastewater) and more than 7.6
billion tons of industrial nonhazardous waste (including wastewater in surface impoundments).
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       A combination of regulations, permits, 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 FY 2003, the RCRA program will focus on improving current waste management
practices, providing greater regulatory flexibility and promoting opportunities for converting waste
to future energy and raw material sources.

       In addition to the overall base program improvements discussed below, EPA looks for
opportunities to move the RCRA program into the future in innovative ways. In FY 2003, the
Agency will continue to review where it can implement regulatory innovations in partnership with
states and the regulated community, such as specific industry sectors, like metal finishing, or
academic research laboratories. EPA will be proposing rules to reform the Definition of Solid Waste
and will collaborate with Regions and states to clarify or revise existing policy related to hazardous
waste recycling. For example, in FY 2003, EPA will promulgate regulations excluding cathode ray
tubes from hazardous waste regulation. In FY 2003, the Agency will continue to experiment with
projects to pilot test alternative regulatory requirements. For example, EPA will work with New
Jersey to promote flexibility in hazardous .waste regulation in its Gold Track program. The RCRA
program is  involved in over 20 XL projects and will monitor their results to determine whether
broader regulatory reforms are warranted. EPA expects state partners to implement projects through
the process jointly developed by Environmental Council of States and EPA, that would encourage
economic' savings and environmental management alternatives without compromising human health
and the environment.

       The  RCRA program reduces the risk of exposures to dangerous hazardous wastes  by
maintaining a "cradle-to-grave" waste management framework.  This framework  regulates the
handling, transport, treatment, storage, and disposal of hazardous waste, ensuring that improper
management does not expose communities to hazards. The main vehicle for hazardous waste
program  implementation is  the issuance of RCRA hazardous waste permits which mandate
appropriate controls for each site. Hazardous waste management facilities have made significant
progress in 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
hazardous waste program, including regulations that address waste management issues contained in
permits, is an important goal. State Program Authorization provides the states with primary RCRA
implementation and enforcement authority, reduces overlapping and dual implementation by the
states and EPA, provides the regulated community with one set of regulations,  reduces overall
federal enforcement presence in the states and can provide the opportunity for some of the newer
less stringent RCRA regulations to be implemented by the states.  In FY 2003, the RCRA program
will partner with the Regions and states to  eliminate the greatest impediments to State Program
Authorization, such as identifying and eliminating internal bottlenecks.

       The  Agency and the  states have now permitted most operating land disposal sites (e.g.,
landfills),- as well as most commercial incinerators.  In a rulemaking designed to simplify the
permitting  process for lower-risk treatment and storage  facilities, the Agency is  developing a

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standardized permit. EPA anticipates promulgating the final rule in FY 2002. In FY 2003, the
RCRA program plans to give guidance  and training on  the  standardized permit rule and
implementation of the rale will begin. In addition, the program is investigating the feasibility of an
e-permitting initiative in partnership with the states. Ideally this initiative will expedite and simplify
the permitting process  and provide better public access to permitting information.

       In addition to making changes in the permitting process, the Agency looks to improve all
other aspects of waste management throughout 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 FY 2003, 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.  During FY 2002, the Agency  will assess  whether additional hazardous waste
identification work remains and implement, if necessary, any identified needs in FY 2003.

       In line with efforts to better calibrate risk and regulatory standards, the Agency will continue
work on developing targeted exemptions from the hazardous waste mixture and derived-from rules
in FY 2003. Two exemptions will be in the final rule stage: one for certain solvents destined for
wastewater treatment and discharge under the Clean Water Act, and another for slagged combustion
residues from hazardous waste combustors.  Work on three other targeted exemptions will likely be
underway based on assessment work conducted in  FY 2002:   a  biological treatment  residue
exemption, a non-slagged-combustion residue exemption and a leachate exemption.

       In FY 2003, the Agency will finalize a rule establishing a consistent national approach for
managing used industrial wipes, shop towels and rags containing hazardous solvents. As part of this
effort,  implementation guidance also will be developed to assist the thousands of small business
which routinely use these particular materials.                           .  .

       The next step in waste management is transportation from the generator to a treatment,
storage or disposal facility, a step the hazardous waste manifest system regulates and tracks. A rule
proposed in May, 2001, for major manifest system changes is intended to  greatly  reduce the
paperwork burdens on waste handlers and authorized states, while improving the effectiveness of
tracking  waste  shipments.  In FY 2003,  the  Agency will finalize this rulemaking and adopt
appropriate manifest form revisions and standards for preparing, signing, and transmitting manifests
electronically.

       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.  Maximum achievable control technology (MACT) standards for hazardous waste  burning
incinerators, cement kilns and light weight aggregate kilns  were vacated by the U.S. Court of
Appeals  for the District of Columbia Circuit, therefore the Agency must respond to the court's
decision with a revised regulatory and implementation strategy. Technical assistance will be critical
during FY 2002  and  FY 2003  for  ensuring appropriate controls over these major sources of

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hazardous air pollutants. The Agency must also develop MACT standards for hazardous waste
burning boilers and hydrochloric acid production furnaces in order to meet statutory obligations
under the Clean Air Act (CAA).

       In FY 2003, EPA will improve and expand activities designed to recover materials and
energy from waste.  In FY 2002, EPA will propose rule changes to promote the use of petroleum
wastes as raw material in gasification processes, which produce clean gas fuels. In FY 2003, the
Agency will finalize the proposed rule for petroleum streams and consider changes that also include
a range of hazardous waste used in gasification. EPA will consider establishing partnerships with
the Department of Energy, industry, and states to facilitate introduction of gasification technology.
Potentially, this effort could turn as much as 2 million tons of hazardous waste, and larger amounts
of solid and industrial waste, into clean energy.

       The Agency will continue to collaborate  with  other Federal  agencies, states, Tribes and
industry to promote safe handling of wastes from mining, oil and gas production, electric utilities
industries, and cement manufacturing. In FY 2003, the Agency plans to develop proposed Subtitle
D regulations for placement of coal combustion wastes in landfills, surface impoundments, and in
mines.  This effort will cover large utilities as  well  as industrial burners of coal.  EPA  will
coordinate this work  with the Department of Energy and the Office of Surface Mining in the
Department of the Interior.

       The Agency also works to reduce risks from industrial non-hazardous waste, also known as
Industrial D waste. Manufacturing facilities generate and dispose of 7.6 billion tons of industrial
non-hazardous  waste  each year. Partnering with state agencies and industry, EPA issued draft
guidelines for management of industrial  solid wastes in FY 2000, and will be finalizing the
guidelines in FY 2002.  The guidelines address  a range of issues related to the management of
industrial non-hazardous waste,  including the siting of waste management  units,  groundwater
contamination, air emissions resulting from solid waste disposal, alternatives to waste disposal, such
as recycling and waste prevention, monitoring,.closure, and corrective action. 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 FY 2003; the Agency  will work with states, industry, and community
representatives to begin implementation of the voluntary guidelines for industrial non-hazardous
waste management.

       In FY 2003, the Agency will  implement  its  strategy for revising its landfill criteria.
Revisions will provide additional flexibility for states and the regulated community. Additionally,
revisions will provide for bioreactor technology as a future energy source.  Studies have indicated
that bioreactor landfill technology results in a significant increase in landfill gas emissions over a
short period of time. These landfill gases consist primarily of methane and carbon dioxide. Landfill
gas may represent an opportunity for gas collection and beneficial reuse for projects such as energy
recovery.  Currently, the use of landfill gas for energy applications is about 10%  of its potential.
Application of the controlled bioreactor technology to 50% of the waste currently being landfilled
could provide over 270  billion cubic feet of methane yearly, sufficient to supply  1% of the U.S.
electrical needs based on the U.S. Department of Energy estimates.

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       The use of biomass as a renewable resource for bio-based products and bio-energy can result
in additional farm income, as well as less reliance on foreign energy sources, such as oil. Currently,
bio-based products and the bio-energy industry remain small and fragmented.  EPA will partner with
federal agencies and states to coordinate and promote a unified national bio-energy strategy creating
a strong momentum for the expansion of this program.

       Waste management, particularly issues surrounding disposal in open dumps, is a significant
environmental concern for tribes.  A 1997 report to Congress by the Indian Health Service identified
143 high-threat open dumps on tribal lands.  In FY 2003, the Agency will continue its leadership
role in 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 participating in this program include the Bureau of Indian
Affairs, Indian Health  Service, and others, The Agency will also assist tribal governments in
building both municipal and hazardous waste management capacity.

       Better technology also improves the entire RCRA program.  In FY 2003,  EPA plans to
continue its redesign of the national information system (RCRAInfo) for management of hazardous
waste. Working with state partners, the Agency is engaged in a multi-year review of the RCRA
hazardous waste management information needs in an effort to improve the quality of each site's
data,  provide improved access to information based on current technology, reduce burden to
information based on current technology, and reduce burden to data providers.

Radiation Waste Management

       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 WIPP,
which began receiving waste for permanent disposal in 1999, must undergo recertification every 5
years.  In FY 2003, the Agency will begin the WIPP's recertification process to ensure the site
complies with applicable environmental laws and regulations.

       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 prevent metals  and finished products   suspected  of having radioactive
contamination from entering the country. In addition, EPA will also work to locate and secure lost,
stolen or abandoned radioactive sources within the united States.

       EPA will also evaluate human health and environmental risks from radiation exposure and to
further the basic understanding of the biological effects of radiation. EPA will  also implement its
strategy to address Technologically Enhanced Naturally Occurring Radioactive Material issues in
conjunction with other Federal agencies, states, tribes, industry, and environmental groups. Finally,
EPA will build the necessary information systems to provide the public access to information about

                                 •    V-71

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radiation emissions across the country.

       In order to strengthenthe abilities of EPA, the States, and other Federal Agencies to prepare
and respond to radiological emergencies, the Agency will continue to develop continuity of
operation plans and ensure the readiness of response laboratories and monitoring equipment.

Research

       To support the Agency's objective of managing active waste management facilities to
prevent contaminant releases into the environment, the Agency will conduct research in multimedia
science and waste management, as well as perform technical support activities.

Multimedia Science

       The Hazardous Waste Identification Rule (HWIR) is being proposed by EPA to provide
administrative and economic relief to the regulated community by developing a risk-based approach
expected to exclude many low-risk wastes and waste streams from regulatory control under Subtitle
C of the Resource Conservation and Recovery Act (RCRA). As the modeling component to HWIR,
the Multimedia, Multipathway, and Multi-receptor Exposure and Risk Assessment (3MRA)
methodology has been developed and is being improved to provide the scientific underpinnings for
this new regulatory approach. This approach has the potential to save millions of dollars annually.
Research to be continued or undertaken in FY 2003 and beyond will include:

          "   improving and making more realistic some of the existing physical, chemical, and
              biological processes algorithms found in the current.system;
          •   adding the capability for site-specific data input and risk assessments;
          "   enhancing the technology with more  comprehensive  uncertainty assessment
              capabilities; and
          "   implementing a comprehensive independent testing and validation program.

       A major product in FY 2003 will be enhancements to the 3MRA modeling system to support
site-specific risk assessments.  EPA also will provide consultation on sampling and sample design
related to compliance with  proposed HWIR "exit levels" (levels below which a waste or waste
stream is excluded from regulation under RCRA Subtitle C).

       Risk assessment research, another facet of the active waste management research program,
will develop provisional toxicity values for a number of contaminants that currently lack values
using relevant toxicity and epidemiologic studies from the scientific literature, and will pursue other
indirect methods to estimate toxicity.

Waste Management

       A number of significant technical problems remain related to waste management. Certain
hazardous waste disposal techniques need to be reevaluated and improved to ensure releases are
minimized. For example, the solidification/stabilization (S/S) standards for some metals that were

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established a decade ago as Best Demonstrated Available Treatment (BOAT) under the Land
Disposal Regulations has failed in some cases.  Improved techniques to actually predict such
releases need to be developed so that EPA can predict the effectiveness of S/S under different
disposal environments.

       In conjunction with drinking water research in Goal 2, research will continue on hard-to-treat
wastes that focus on the characterization and treatment of arsenic-bearing residuals.  Leaching
studies also will continue on arsenic-bearing wastes, mine process wastes, and municipal solid
wastes, including those in bioreactors.

       In the area of municipal and solid waste disposal, an increasing number of companies are
starting to design landfills as bioreactors to save space and reduce long-term liabilities. These units
operate in a significantly different manner than conventional landfills; for example, bioreactors
generally have much higher water content and produce more  methane gas.  Therefore,  the
effectiveness of such systems and their environmental impacts are still uncertain. In FY 2003, EPA
will  conduct  field sampling and  monitoring of  several landfill  bioreactors, continue  the
characterization of the microbiology of bioreactor cells, and initiate a bioreactor design manual.
Results of these efforts will include an interim field assessment of a landfill bioreactor system.

       Another aspect of waste management research involves hazardous waste combustion. Efforts
in this area address incinerators and industrial combustion systems burning waste. Emissions from
these facilities remain a public concern and a number of uncertainties about them exist, including the
cumulative impact of continuous emissions from multiple combustion facilities. In FY 2003, work
on continuous emissions monitors will continue with a focus on dioxins and other products of
incomplete combustion  (PICs). Results will include a paper on revised total organic  emissions
methodologies for use in permitting.

       Technical support activities in risk management and risk assessment associated with RCRA
Corrective Action will  also continue in the form of support centers.  These centers include the
Engineering Technical Support Center, the Ground Water Technical Support Center, and the
Combustion Technical Assistance Center.  These centers provide  site-specific technical support,
scientific questions (e.g., human health  and  environmental toxicity), and  technology transfer
documents.
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FY 2003 Change from FY 2002 Enacted

EPM:

        (-$ 1,100,000) The F Y 2003 request is $ 1,100,0000 below the FY 2002 Enacted budget level
        due to Congressional earmarks received during the appropriations process that are not part of
        the FY 2003 President's request.

• •      (+$794,3 000) Resources, dollars and FTE, associated with rent are allocated in proportion to
        Agency-wide FTE located in each goal, objective.  Resources, dollars and FTE, associated
        with utilities,  security  and human resource operations  are allocated in proportion to
        Headquarters FTE located in each goal, objective.  Changes reflect shifts  in FTE between
        goals and objectives. Resources, dollars and FTE, associated with contracts and grants are
    •   allocated in proportion to Headquarters' contracts and grants resources located in each goal,
        objective.   Changes  in these activities reflect shifts  in resources between goals and
        objectives.   (Total changes - rent:  -$3,569,400, utilities: +$3,468,000,  Security:  -
        $9,103,900.  Nominal increases/decreases occurred in human resource operations, grants
        and contracts related activities.)

STAG:

    "   No change

OIL:

    "   No change

S&T

    •   (-$ 1,000,000)  The F Y 2003 request is $ 1,000,000 below the F Y 2002 Enacted budget level
        due to Congressional earmarks received during the appropriations process that are not part of
        the FY 2003 President's request.

Annual Performance Goals and Measures  •

UST Compliance
In 2003   EPA and its state and tribal partners will ensure that 80% of LIST facilities will be in significant operational compliance with leak
            detection requirements, and 85% of UST facilities will be in significant operational compliance with spill, overfill and corrosion
            protection regulations.
In 2002   EPA and its state and tribal partners will ensure that 77% of UST facilities will be in significant operational compliance with leak
            detection requirements, and 82%of UST facilities will be in significant operational compliance with spill, overfill and corrosion
            protection regulations.
In 2001   The Agency now tracks the number of UST facilities in significant operational compliance with requirements, as opposed to the
            number of UST systems equipped to meet the requirements. For this reason, data on these two measures is not available and will
            not be available in the future.
Performance Measures:                                FY2001          FY2002         FY 2003
                                               74

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                                                               Actual             Enacted             Request
Percentage of USTs in compliance with the 1998 deadline            not available                                              compliance
requirements.

Percentage of USTs in compliance with the leak detection            not available                                              compliance
requirements.

Percentage of UST facilities in significant operational                                             77                  80      percent
compliance with leak detection requirements.

Percentage of UST facilities in significant operational                                             82                  85      percent
compliance with spill, overfill and corrosion protection
regulations.
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 2003   300 audits will be completed on RMP plans to determine completeness and accuracy, and 8 additional states (for a cumulative total of
               25) will be implementing accident prevention programs.

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   EPA met its goal, with 85% of facilities submitting RMPs, 5 additional states implementing Accident Prevention Programs, and 438
               audils completed to determine RMP completeness and accuracy.

Performance Measures:                                          FY2001             FY2002             FY2003
                                                               Actual             Enacted             Request
Percentage of facilities which have .submitted RMPs.                         85                90%                          facilities

RMP audits completed.                                                   438                 300                 300      audits

Number of states implementing accident prevention                           528      states
programs.
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 2003   600 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 3,495 facilities since 1997.

In 2002   550 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 2,895 facilities since 1997.

In 2001   EPA confirmed an additional 593 facilities in compliance with spill prevention, control, and countermeasures (SPCC) provisions, for a
               cumulative total of 2,345 facilities in compliance since 1997.

Performance Measures:                                         FY2001             FY2002            FY2003
                                                               Actual             Enacted            Request
Facilities in SPCC compliance.                                           593                 550                 600      facilities
Baseline:  1,752 facilities were in compliance in FY 2000.


Oil Spill Response

                                                               75

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In 2003   Respond to or monitor 300 significant oil spills in the inland zone.

In 2002   EPA will respond to or monitor 300 significant oil spills in the inland zone.

In 2001   EPA significantly exceeded its goal by responding to 249 oil spills and monitoring 278 oil spills.
Performance Measures:

Oil spills responded to by EPA.

Oil spills monitored by EPA.

Oil spills responded to or monitored by EPA.
FY 2001
 Actual
FY 2002
Enacted
         249

         278
                             300
FY 2003
Request
                             300
                   spills

                   spills

                   spills
Baseline:  EPA typically responds to 70 oil spills and monitors 130 oil spill cleanups per year.
Ensure WIPP Safety

In 2003   Certify that 8,000 55 gallon drums of radioactive waste (containing approximately 24,000 curies) shipped by DOE to the Waste
               Isolation Pilot Plant are permanently disposed of safely and according to EPA standards.

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:

Number of 55-Gallon Drum's of Radioactive Waste Disposed
of According to EPA Standards
FY 2001
 Actual
FY2002
Enacted
                           6,000
FY 2003
Request
                           8,000
                   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 2002, approximately 13,000 (cumulative) 55 gallon drums will be safely disposed. In FY 2003, EPA expects that
               DOE will ship an additional 8,000 55 gallon drums of waste to WIPP so that 2.4% 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.

RCRA Facility Standards and Compliance

In 2003   77.2% of the hazardous waste management facilities will have approved controls in place to prevent dangerous releases to air, soil, and
               groundwater. This represents an additional 39 facilities meeting the goal this year.

In 2002   75.8% of the hazardous waste management facilities will have approved controls in place to prevent dangerous releases to air, soil, and
               groundwater, representing an average increase of 39 additional facilities per year.

In 2001   An additional 249 hazardous waste management facilities have permits or other approved controls in place, for a cumulative total of
               2,051  or 74% of the facility universe. The streamlined permitting standards rule was proposed October 12,2001.
Performance Measures:

Propose final streamlined permitting standards

Percent RCRA hazardous waste management facilities with
permits or other approved controls in place.

Promulgate final streamlined permitting standards.

Initiate training program for new permitting standards.
FY2001
 Actual
FY 2002
Enacted
            1

        74%
FY 2003
Request
                            75.8
                                                77.2
                                       rulemaking

                                       percent


                                       rulemaking

                                       training
Baseline:  EPA established a baseline of approximately  2,750 facilities in October 2000.

Tribal Prevention Assistance
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In 2003   EPA will provide grants to those tribes identified as having facilities subject to the Emergency Planning and Community Right-to^
               know Act (EPCRA).

In 2003   EPA will evaluate RCRA Subtitle C management needs for an additional 36 Federally recognized tribes.

In 2003   EPA will facilitate closing or upgrading existing high-threat open dumps on Indian Lands.

In 2002   EPA wjll evaluate RCRA Subtitle C management needs for an additional 18 Federally recognized tribes.

In 2002   EPA will facilitate closing or upgrading existing high-threat open dumps on Indian lands.

In 2002   EPA will identify tribes where chemical facilities subject to Emergency Planning and Community Right to Know Act (EPCRA)
               requirements exists and have tribal emergency preparedness programs in place to address those risks.

In 2001   Data is currently unavailable for the open dumps cleanup project.

In 2001   EPA developed a tribal strategy to promote development of tribal chemical emergency preparedness programs.

In 2001   EPA evaluated the needs of 177  tribes in FY 2001.

Performance Measures:

Develop surveys and begin data collection.

Provide funding assistance,

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.

Provide support and funding to tribes participating in the
multi-Agency Tribal Open Dump Cleanup Project.
FY2001
Actual

I
177
not available
not available
not available

FY2002
Enacted
1


IB
no target
no target
no target
no target
FY 2003
Request.
no target

36
no target
no target
no target
no target
data gathering
grants
draft strategy
evaluations
assessments
upgrades
sites
funding
Baseline:  EPA is currently working to assess the number of tribes with chemical hazards on tribal lands.

Research

Scientifically Defensible Decisions for Active Man

In 2003   Deliver scientifically-enhanced 3MRA to OSW for their HWIR proposal and provide OSW/Regions with site-specific version of this
               exposure and risk assessment modeling system to implement HWIR and other applications for more cost-effective waste site
               management and protection of health and environment.

In 2001   EPA provided technical information to support RCRA regulatory development for waste identification, containment, and combustion.
Performance Measures:

Update the HWIR99 modeling methodology for delisting
hazardous wastes, in response to public comments on 1999
Federal Register Notice

Deliver science based enhancements to the 3MRA modeling
system to support OSW's proposed HWIR and for conducting
site-specific risk assessments.
FY2001
 Actual
FY2002
Enacted
FY 2003
Request
                                                         update
                                                         model
Baseline:  As a result of their regulatory reform efforts, OSW introduced in November 1999, a new open-architecture, multimedia, multipathway,
               and multi-receptor exposure and risk assessment (3MRA) methodology designed to support their Hazardous Waste Identification
                                                              77

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           Rule (HWIR). Independent software testing, peer review on the system architecture and its internal science modules, and public
           comments on the Federal Register announcement are being addressed through refinements to the proposed modeling system. We
           also are improving some of the existing physical, chemical, and biological processes algorithms in the current system. The
           enhanced version will be used to support QSWs proposed HWIR (Proposal and Final Rule are expected about FY03 and FY05,
           respectively) which will update existing waste disposal regulations to eliminate possible over-regulation; 3MRA will serve as the
           scientific basis for establishing safe exit levels for certain wastes. The site-specific version will expand the screening level
           assessment capabilities to provide for site-specific exposure and risk assessments that will be used in HWIR implementation and
           other RCRA applications.
Verification and Validation of Performance Measures

Performance Measure (PM): Percentage of USTs in significant operational compliance with
leak detection requirements; Percentage of USTs in significant operational compliance with
spill, overfill and corrosion protection regulations.

Performance Database: EPA does not maintain a national database for this information.

Data Source: Designated state agencies submit semi-annual progress reports to the EPA regional
offices.

QA/QC Procedures:   EPA regional  offices verify the data  and then  forward  them EPA
Headquarters, where staff examine the data and resolve any discrepancies with the regional offices.
The data are displayed in a document on a region-by-region basis, which allows regional staff to
again verify their data.

Data Quality Reviews:  None.

Data Limitations: This process relies on accuracy and completeness of state records.

New/Improved Data or Systems:  None.

Congressional Performance Measure (PM): 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  generate the data and manage data quality related to
timeliness and  accuracy (i.e.,  the environmental conditions and determinations are correctly
reflected by the data). Within RCRAInfo the application software enforces structural controls that
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ensure that high-priority national  components of the data are properly  entered.   RCRAInfo
documentation, which is available to all users on-line, provides guidance to facilitate the generation
and interpretation of data. Training on use of RCRAInfo is provided on a regular basis, usually
annually, depending on the nature of system changes and user needs.

Data  Quality Review:  GAO'sl995 Report on EPA's Hazardous Waste Information System
reviewed whether national RCRA information systems support meeting the primary objective of
helping EPA and states manage the hazardous waste program. Recommendations coincide with
ongoing internal efforts (WIN/Informed) to improve the definitions of data collected, ensure that
data collected provide critical information and minimize the burden on states.

Data Limitations:  No data limitations have been identified.

New/Improved Data or Systems:  EPA has successfully implemented new tools for managing 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.  RCRAInfo allows for tracking of information on the regulated universe of RCRA
hazardous waste handlers, such as facility status, regulated activities, and compliance history. The
system also captures detailed data on the generation of hazardous waste by large quantity generators
and on waste management practices from treatment, storage, and disposal facilities. RCRAInfo is
web accessible, providing a convenient user interface  for Federal, state and local managers,
encouraging development of in-house expertise for controlled cost, using commercial off-the-shelf
software to develop reports from database tables.

Performance Measure:  Number of drums of radioactive waste disposed of according to EPA
standards.

Performance Data: The Department of Energy (DOE) Waste Isolation Pilot Plant (WIPP) database
contains the number of drums shipped by DOE waste generator facilities and placed  in the DOE
WIPP.

Data Source: Department of Energy

QA/QC Procedures:  The performance data used by EPA are collected and maintained by DOE.
Under EPA's WIPP regulations, all DOE WIPP-related data must be collected and maintained under
a comprehensive quality assurance program meeting consensus standards developed by  the
American Society of Mechanical Engineers (ASME). EPA conducts regular inspections to ensure
that these quality assurance systems are in place and functioning properly; no additional QA/QC of
the DOE data is conducted by EPA.

Data Limitations: The DOE WIPP database contains the number of drums shipped by DOE waste
generator facilities and placed in the DOE WIPP.  Currently, there are five DOE waste generator
facilities, Los Alamos National Laboratory, Rocky Flats Environmental Technology Site, Hanford
Site, Idaho National Engineering and Environmental Laboratory, Savannah River Site that are
approved to generate and ship waste.
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Before DOE waste generator facilities can ship waste to the WIPP, EPA must approve the waste
characterization controls and quality assurance procedure for waste identification at these sites. EPA
conducts frequent independent inspections and audits at these sites to verify continued compliance
with radioactive waste disposal standards and to determine if DOE is properly tracking the waste and
adhering to specific waste component limits. Since 1998, EPA has completed over 30 inspections
prior to shipment of waste to the WIPP facility.

Once EPA gives its approval, the number of drums shipped to the WIPP facility on an annual basis
is dependent on DOE priorities and funding. EPA volume estimates are based on projecting the
average shipment volumes over 40 years with an initial start up.

New/Improved Data or Systems: None

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 in accomplishing the goals of the Risk Management and EPCRA programs.
The Agency's role in carrying out these initiatives is to provide leadership and support. EPA works
in partnership with states and local governments and other organizations to promote actions to
reduce risk.  EPA also provides 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 (DOJ, OSHA, DOT) and with
states to ensure compatibility with new and existing accident  preparedness and prevention
initiatives. Close coordination and a cooperative working relationship is also required to effectively
meet our responsibilities in the Chemical Safety program, most importantly where they involve the
Chemical Safety Board (CSB). EPA has completed a memorandum of understanding with the CSB
which further delineates this working relationship.

       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
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Permitting and Municipal Solid Waste (MSW) 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 the
goals and performance they will achieve with the grant funds. For example, Regions may negotiate
with the state agencies the number of facilities  they will permit 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. Regional offices establish interagency
workgroups in states where partnership with these Federal agencies have not been well established.
Workgroup representatives  from other Federal  agencies coordinate tasks based on the field of
expertise within each agency which allows for efficient completion of the open dump initiative
without overlapping efforts.

Research

       EPA developed a Memorandum of Understanding (MOU) with several other agencies
(Department of Energy, the Department of Defense, Nuclear Regulatory Commission, Department
of the Interior - US Geological Survey, and the Department of Agriculture) for multimedia modeling
research and development; contacts with the other agencies have been developed largely as a spin-
off of the successful 3MRA modeling program in EPA. The multi-agency coordination will avoid
inefficient duplication, and allows  each agency or department partner to benefit from the best
expertise available on any subject area.

       With respect to waste management issues, cooperation is taking place with other outside
elements.  Currently, EPA has the lead in providing regulatory guidance for solid waste disposal
issues. The Agency has also worked extensively with bioreactor technology, in cooperation with
states and private industry, and will continue to do so in FY 2003.  In conjunction with the
Association of State and  Territorial Solid Waste Management Officials (ASTSWMO) and the
National Council of Governors, EPA state programs have been actively analyzing new operating
configurations for landfills. The Interstate Technical Regulatory Cooperation (ITRC) has proved a
good forum for coordinating Federal and state activities and for defining continuing research needs.
All of these efforts help bridge the gaps in the Agency's own research programs.
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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.I 02-486

••      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

       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)

                                         82

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Resource Conservation and Recovery Act (RCRA)




Hazardous and Solid Waste Amendments (HSWA)




The Clean Air Act Amendments (CAA)
                                83

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Goal 6: Global and Cross-Border

-------
Environmental Protection Agency
2003 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	,  VI-10
        Reduce Greenhouse Gas Emissions	,	,	,	 VI-21
        Reduce Stratospheric Ozone Depletion	,	VI-48
        Protect Public Health and Ecosystems from PBTs and other Toxics	VI-56
        Increase Domestic and International Use of Cleaner and More Cost-Effective Technologies	VI-66

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                           Environmental Protection Agency

           FY 2003 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)

Reduction of Global and Cross-border
Environmental Risks
Reduce Transboundary Threats to
Human and Ecosystem Health in North
America.
Reduce Greenhouse Gas Emissions.
Reduce Stratospheric Ozone Depletion.
Protect Public Health and Ecosystems
from PBTs and other Toxics.
Increase Domestic and International Use
of Cleaner and More Cost-Effective
Technologies.
Total Workyears
FY2001
Actuals
$304,287.5
$120,000.8
$149,610.2
$18,989.4
$4,772.6
$10,914.5
549.7
FY 2002
Enacted
$276,588.0
$96,869.4
$145,293.6
$15,843.2
$6,060.9
$12,520.9
517.7
FY 2003
Request
$269,727.2
$98,185.9
$136,953.4
$15,813.3
$6,173.6
$12,601.0
504.7
FY 2003 Req.
v. FY 2002 Ena.
($6,860.8)
$1,316.5
($8,340.2)
($29.9)
$112.7
$80.1
-13.0
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
U.S. citizens, are shared by neighboring countries, and can be preserved only through joint action.
Other environmental risks-related to climate change, arctic environments, and biodiversity - are
global in scope, and can affect the health and welfare of all those who live in the United States both
directly and indirectly. These and other threats, unbounded 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  developing nations  achieve
development consistent with the goals of protecting human health and, the environment.  As
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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. The programs were initially conceived in a Federal-to-Federal context. While this
may have been appropriate  at the start, it  is clear that today in both countries, non-Federal
governments are the appropriate entities for developing and carrying out much of the work of
protecting the border environment. The experience of the last six years has shown U.S. border states
as key participants in workgroup activities with similar experience on the Mexico side. In the past
year all border states have stressed the need for greater decentralization of environmental authority,
and in F Y 1999, states and the Federal governments agreed to a set of principles that clarify the roles
of the governments and advance state and Tribal participation. Under a new environmental plan
developed with SEMARNAP (EPA's Mexican counterpart), targeted for completion by December
2002, the states and Tribes will play a more substantial and meaningful role in:

       • •     determining how Federal border programs are developed and funded;
       * •     focusing on developing regional workgroups that empower border citizens; and
       • •     ensuring that programs devolve from Mexico's Federal government to the Mexican
              states, with corresponding funding.

       The 2001 Great Lakes Strategy, developed by EPA's Great Lakes National Program Office
(GLNPO) and Federal, state, and Tribal agencies in consultation with the public, advances U.S.
Great Lakes Water Quality Agreement implementation. Its  long-range vision (a healthy natural
environment where all beaches are open for swimming, all fish are safe to eat, and the Lakes are
protected as a safe source  of drinking water) is supported by  Lakewide Management Plans and
Remedial Action Plans for Areas of Concern.   Progress is  measured through the Integrated
Atmospheric Deposition Network and GLNPO's  open water, fish, and sediments monitoring. To
prevent degradation of the marine environment, the Agency, in conjunction with the Department of
State, the National Oceanic and Atmospheric Administration (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 both working with business and other sectors
to deliver multiple benefits - from cleaner air to lower energy bills - while continuing to 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

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on the tremendous opportunities available to consumers, businesses, and organizations to make
sound investments in 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. Through the Clean Automotive
Technology initiative, EPA will work with industry to develop and commercialize fuel-efficient
hydraulic hybrid and advanced engine technologies that will utilize EPA developed technologies.

       EPA is also engaged in working with key developing countries and economies- in- transition
to provide capacity building and technology transfer in areas of air quality, transportation, clean
energy use and energy efficiency, and cleaner production.  Working hand-in-hand with international
partners, these joint activities support  more sustainable practices and lead to greenhouse gas
emissions reductions as well as build local technical capacity for developing countries to take on
commitments to reduce greenhouse gas emissions under the -1992 Climate Convention.  EPA's
activities provide information sharing  and training and  contribute  to the fulfillment of U.S.
commitments under the Climate Convention to facilitate technology transfer to developing countries.

       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 ultraviolet (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 toxiciry 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 in this goal. These include:

•  Implementing formal bilateral  and multilateral environmental agreements with key countries,
   executing environmental components of k-ey 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.

•  Working with other countries  to ensure that domestic and international environmental laws,
   policies, and priorities are recognized and implemented,

•  Partnering with other Federal agencies, states, business, and environmental groups to promote
   the flow of environmentally sustainable technologies and services worldwide.

Research'

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       EPA's Global Change Research Program contributes to the Agency's goal of reducing
greenhouse gas emissions by providing the knowledge to allow policy makers to find the most
appropriate, science-based solutions to reduce risks to human health and ecosystems posed by
climate change  (e.g., the impacts climate change could have on the spread of vector-borne and
water-borne disease, as well as on air and water quality). The Agency 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, and to assess adaptation strategies.

Highlights

       In FY 2003, EPA will use a variety of approaches to build international cooperation and
technical capacity and to prevent harm to the global environment and ecosystems we share with
other nations.

       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 Agency website, 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 the 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.                                           •      .

U.S./Mexico Border

       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 arid
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.

       Following on the agreement of Presidents Bush and  Fox to serve urgent environmental
priorities in the border, EPA and SEMAJRNAP (EPA's Mexican counterpart) will "work closely
with our state and Tribal partners to develop -by December 31, 2002- a new and results-oriented
plan for the U.S.-Mexico border."  The environmental  plan will build on the foundation of the La
Paz  Agreement and draw on  experiences of previous border programs. As a  step toward

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development of this plan, the 10 border states have proposed, and EPA concurs with, the following
mission statement: "To protect public health and the environment through conservation, pollution
prevention, and pollution abatement in the U.S.-Mexico border region, consistent with the principles
of sustainable development."

Great Lakes

       EPA, through the Great Lakes National Program Office, will coordinate among state, Tribal,
and Federal agencies to  implement  the Great Lakes Strategy and  measure progress against
quantitative  environmental objectives  in areas such as clean-up of Areas of Concern, reduction of
fish contaminants, beach closures, sediment remediation, wetland restoration, and invasive species.
In FY 2003, if long term trends continue, EPA will report a 5% decline in toxics (PCBs) in lake trout
and a 7% reduction in air toxic concentrations.  EPA and its partners will remediate over 100,000
cubic yards of contaminated sediments. EPA will also explore why Lake Erie dissolved-oxygen
levels are inexplicably low despite U.S. and Canadian success in achieving phosphorus targets.

       Proposed longer-term objectives in the draft Great Lakes Strategy include:
       •      By 2005, clean-up and de-list. 3 Areas of Concern, with a cumulative total of 10 by
              2010 out of 43 that have been identified.
       •      By 2007, reduce concentrations of PCBs in lake trout and walleye by 25%,
       •      By 2010,90% of monitored Great Lakes beaches will be open 95% of the swimming
              season. (Current data for calendar year 2000 indicates that there are 234 monitored
              beaches in the Great Lakes, and about 75% of them are open more than 9.5% of the
              season.)
       *      By 2010, vessels entering the Great Lakes will discharge ballast water free of
              invasive species.
       •      By 2010, restore or enhance  100,000 acres of wetlands in the Basin.
       •      Accelerate the pace of sediment remediation, leading to the clean-up of all sites by
              2025.

Climate Change

       EPA's voluntary climate change programs have made significant progress to date. However,
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, 862, and CCh..
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 transferring the highly efficient hybrid powertrain components, originally
developed for passenger car applications, to meet the more demanding size, performance, durability,
and towing requirements of Sport Utility Vehicles (SUVs) and urban delivery vehicle applications,
resulting in increased fuel economy. In particular, EPA's Clean Automotive Technology (CAT)
initiative will provide the following benefits:

                                         VI-5

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       •     Allow EPA to develop unique engine and hybrid technology for SUVs and urban
             delivery vehicles, resulting in increased SUV fuel efficiency of 30% (from 2001
             baseline of 20.2 mpg) by 2006 and up to 100% by 2010.
       *     With the successful development and adoption of this cost effective and practicable
             technology (facilitated by complementary policies), EPA estimates that the eventual
             market penetration for this technology to be up to 40-50% in 2020.
       •     This would result in a potential for annual fuel savings of up to 8 billion gallons (4%
             savings from business-as-usual) or the equivalent of 25 MMTCE reduced in 2020
             (from light trucks including SUVs).

       EPA will continue to 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's climate programs break down market
barriers and foster energy efficiency  programs, products and technologies, cost effective renewable
energy, and  greater transportation choices. A key example is within the Buildings Sector which
represents one of EPA's largest areas of potential, and at the same time is one of its most successful.
 EPA will continue to build upon the successful ENERGY STAR partnerships (including ENERGY STAR
Labeling and the ENERGY STAR Buildings Program) and 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 about 43.MMTCE annually in greenhouse gas reductions by 2010
while saving businesses and consumers more than $ 14 billion. In addition, EPA will continue work
in the Industry and Transportation Sectors as well as fostering efforts in carbon sequestration.

       EPA will continue to work closely with state and local partners to assess the air quality,
health, and economic benefits of reducing greenhouse gas emissions and developing practical risk
reduction strategies. And, it will establish international partnerships that will link  industrial
efficiency, reduction of greenhouse  gases, and sustainable development.

Stratospheric Ozone

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

Toxics and Pollutants

       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 B within the frameworks established by international instruments B 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

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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.

       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 75
SIDS chemicals in FY 2003.

POPs Implementation

       The United States recently signed the Stockholm Convention on persistent organic pollutants
(POPs) which addresses 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.,  despite
domestic efforts to reduce releases. The problem is especially acute in Alaska and the Great Lakes,
where POPs are taken up in the food chain and impact Native Americans who depend on subsistence
foods. 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.

       In FY 2003, EPA will target new and existing resources to: (1) provide technical and
financial assistance to key countries/regions, with an emphasis on those whose releases most directly
affect the U.S. (e.g., Russia, Central America, and the Caribbean); (2) address key priorities/areas of
need for each country as  well as gaps in technical and financial assistance; (3) maximize use of
existing  bilateral  and regional  partnerships, such as the North  American Commission  on
Environmental Cooperation (NACEC) and the Arctic Council, to achieve efficiencies and leverage
funding; and (4) support international cooperative efforts, such as monitoring and assessment, to
identify trends and establish priorities.

Research

       EPA will assess the potential consequences of global change - including climate variability
and change, land use changes, and UV radiation - on air quality, water quality, ecosystem health, and

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public health. EPA will also assess potential adaptation strategies for building resilience to global
change, while responding to both risks and opportunities.  The program will continue to focus on
providing scientific information to support decision making by policy makers, resource managers,
and other stakeholders. In FY 2003, EPA's Global Change Research Program will place particular
emphasis on continuing its support for the assessment of the consequences of global change within
regions and sectors, the ongoing U.S. National Assessment activities, and other related U.S. Global
Change Research Program (USGCRP) assessment activities. The Program will emphasize assessing
the potential effects of climate change on weather-related morbidity and will continue to support the
maintenance of the UV monitoring network and data collection using the network. Additional areas
of focus in FY 2003 will be continuing the assessment of potential consequences of global change
for air quality (which will inform air quality managers and other decision makers about how climate
change might affect regional concentrations of criteria air pollutants), water quality (which will
inform managers of public water systems of how climate change might affect water quality  in states
and localities), and aquatic ecosystem health.

External Factors

       EPA's work to reduce global and cross-border environmental risks 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 include continued Congressional and public
support; cooperation with other Federal agencies, such as the State Department and the  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 National Oceanic and Atmospheric Administration (NOAA),
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

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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 2003 Annual Performance Plan and Congressional Justification

                  Reduction of Global and Cross-border Environmental Risks

Objective: 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)

Reduce Transboundary Threats to Human and
Ecosystem Health in North America.
Environmental Program & Management
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$120,000.8
$21,136.7
$98,864.1
82.9
FY 2002
Enacted
$96,869.4
$21,869.4
$75,000.0
83.5
FY 2003 FY 2003 Req.
Request v. FY 2002 Ena.
$98,185.9
$23,185.9
$75,000.0
80.8
$1,316.5
$1,316.5
$0.0
-2.7
                                       Key Program
                                   (Dollars in Thousands)

Administrative Services
Facilities infrastructure and Operations
Great Lakes National Program Office
Legal Services
Management Services and Stewardship
Regional and Global Environmental Policy
Development
U.S. - Mexico Border
Water Infrastructure:Mexico Border
FY2001
Enacted
$60.1
$0.0
$15,266.3
$422.5
$196.2
$913.0
$4,384.2
$74,835.0
FY 2002
Enacted
$0.0
$1,082.2
$14,929.7
$443.1
$333.4
$931.5
$4,149.5
$75,000.0
FY 2003 FY 2003 Req.
Request v. FY 2002 Ena.
$0.0
$1,127.7
$15,128.2
$476.2
$373.7
$715.5
$5,364.6
$75,000.0
$0,0
$45.5
$198.5
$33,1
$40.3
($216.0)
$1.215.1
$0.0
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FY 2003 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.

y.S.-Mexico Border

       Communities along the 2,000 mile U.S.-Mexico border are experiencing rapid economic and
population growth, as well as environmental problems, much of it driven by increased trade between the
countries. There are more than 12.6 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. Based on the results of the
U.S. - Mexico Border XXI Program: Progress Report 1996 - 2000 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 January 2001, EPA estimated water and wastewater infrastructure needs along the U.S.-Mexico
border at $4.5 billion. For FY 2003, the Agency has established a goal that cumulatively 900,000 people in
the border area will be protected from health risks because of the construction of adequate water and
wastewater sanitation systems. 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, which manages the Border Environmental Infrastructure Fund (BEIF),
to support the financing and construction of water and wastewater treatment.

       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 on the border. Nine binational


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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 economic and
population growth, as well as environmental problems, much of it driven by increased trade between the
countries. There are more than 12.6 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 2003 resources in areas which can most directly lead to improvements in public
health and environmental conditions in the area and begin development of a new environmental program for
the border. During discussions between the Bush Administration and the Government of Mexico a new
commitment to work closely with pur state and Tribal partners to develop a new and results-oriented plan
for the U.S.-Mexico border was proposed and agreed to. The center piece of this new plan is a shift from an
centralized decision-making framework to regional framework, working more closely with States, Tribes,
and local communities on both sides of the border on environmental issues they have identified and
prioritized. Efforts underway will continue as work progresses in developing a successor initiative to
Border XXI.

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 manage programs  in accord with a multi-
agency 2001 Great Lakes Strategy.

       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 Basin.  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 support decision
making. GLNPO will adjust implementation of its monitoring program for a subset of indicators consistent
with GPRA, the new Great Lakes  Strategy, and the biennial State of the Lakes Ecosystem Conference
(SOLEC  - a biennial conference bringing together representatives of the public and private  sectors to
facilitate  decision making based upon sound environmental information).

       Adjustments to the monitoring program 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. The Research Vessel (R/V) Lake Guardian (open lake monitoring), the R/V
Mudpuppy (nearshore sediments monitoring), and the joint GLNPO/Canadian integrated atmospheric


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deposition network (including air monitoring stations on each Great Lake) will be central to summarizing
the ecological State of the Lakes.  GLNPO will also explore why dissolved-oxygen levels in Lake Erie are
inexplicably low, resulting in an increasing "dead zone," despite U.S. and Canadian success in achieving
total phosphorus targets. EPA will also expand access to 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 PCB reduction projects, and other reduction actions, EPA will help achieve reduction
targets, consistent with the identification of options for each  of the  12  Binational Toxics Strategy
substances. EPA proposes to work with industrial and municipal sectors to achieve additional reductions.
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 Great Lakes partners, will continue to address the contaminated sediments polluting
the rivers and harbors of the 31 U.S. and/or binational Areas of Concern (AOCs).  GLNPO will provide
technical expertise, garnered during the congressionally mandated Assessment and  Remediation of
Contaminated Sediments program, in addition to financial support  and the use of its sediment sampling
vessel, the R/V Mudpuppy, to support sediment assessments at AOCs. GLNPO also provides technical
support to our  Great Lakes partners for evaluating available data and  making sediment management
decisions at specific sites.  If a community chooses to remediate  the sediments, GLNPO can provide
technical and limited financial support for conducting sediment site clean-up. In FY 2003, GLNPO will
assist states and communities with assessments and remedial design at sites in 4 AOCs, one of which has not
previously received this assistance. A total of 100,000 cubic yards of contaminated sediments is expected to
be remediated through various actions involving a number of different stakeholders.

       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 in
SOLEC habitat papers.  The program emphasizes  habitats important for biodiversity and ecological
integrity, such as those necessary for endangered and threatened species. Additional projects 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, 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


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will continue to report to Congress and the International Joint Commission regarding progress under the
Great Lakes Water Quality Agreement.

Marine and Arctic Environments

       In FY 2003, EPA will undertake efforts to prevent significant degradation of the marine and Arctic
environments.  Our FY 2003 performance goals target incremental steps necessary to achieve our longer-
term objectives of preventing further degradation of the marine environment of the Wider Caribbean and
Arctic Ocean, as well as the marine environment more 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 damage
associated with tributlytin, vessel discharges, invasive species, 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 in Northwest Russia.

       The Russia PCS 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. EPA's involvement to address toxic pollutants in the
Arctic region are now addressed under Objective 4, Global Toxics. 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 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; EPA's involvement is addressed under Objective 4, Global Toxics.

       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 global negotiations is critical
to maintain needed flexibility in domestic rule making and other environmental policy mechanisms.
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FY 2003 Change from FY 2002


EPM


"       (-$537,000)  This decrease reflects a disinvestment of a FY 2002 Congressional earmark.


•       (+$ 1,000,000) This increase provides additional resources for mitigating threats to public health and
        the environment and establishing a new environmental plan for the U.S. -Mexico Program.


"       ($1,398,700)  Resources, dollars and FTE, associated with rent are  allocated in proportion to
        Agency-wide FTE located in each goal, objective.  Resources, dollars and FTE, associated with

        utilities, security and human resource operations are allocated in proportion to Headquarters FTE
        located in each goal, objective.   Changes reflect shifts  in FTE  between goals and objectives.
        Resources, dollars and FTE, associated with contracts and grants are allocated in proportion to

        Headquarters' contracts and grants resources  located in each goal, objective.  Changes in these
        activities  reflect shifts in resources between goals and  objectives.   (Total changes - rent:   -
        $3,569,400, utilities:+$3,468,000, Security: -$9,103,900. Nominal increases/decreases occurred

        in human resource operations, grants and contracts related activities.)



Annual Performance Goals and Measures


U.S. - Mexico Border Water/Wastwater Infrastructure

In 2003   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 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   Provided protection to over 576,405 residents in the Mexico border area from health risks, beach pollution and damaged ecosystems from
            nonexistent and failing water and wastewater treatment infrastructure by providing improved water and wastewater service.

Performance Measures:                                  FY2001          FY2002          FY2003
                                                   Actual           Enacted          Request
Number of additional people in Mexico border area                  576,405          790,000          900,000    People
protected from health risks, because of adequate water &
wastewater sanitation systems funded through Border
Environmental Infrastructure Fund.



Baseline:  There are approximately 11 million residents in the border area.

Great Lakes: Binational Toxics Strategy

In 2003   Reduce Great  Lakes toxic pollutants.

In 2002   Reduce Great  Lakes toxic pollutants.

In 2001   Reduced Great Lakes toxic pollutants by remediating over 400,000 cubic yards of contaminated sediment..

Performance Measures:                                 FY2001          FY2002          FY2003
                                                   Actual           Enacted          Request
Cubic yards of contaminated sediment remediated in the              401,500          100,000          100,000    Cubic yards
Great Lakes.
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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 sediment remediation. GLNPO will continue to quantify
              contaminated sediment remediation annually.


Great Lakes: Ecosystem Assessment

In 2003   Great Lakes ecosystem components will improve, including progress on fish contaminants, beach toxics, sir toxics, and trophic status.

In 2002   Great Lakes ecosystem components will improve, including progress on fish contaminants, beach toxics, air toxics, and trophic status.

In 2001   Great Lakes ecosystem components improved, including progress on fish contaminants, beach toxics, air toxics, and trophic status.

Performance Measures:                                       FY2001           FY2002           FY2003
                                                           Actual            Enacted           Request
Long-term concentration trends of toxics (PCBs) in Great              Uncertain          Declining                5%      Annual decrease
Lakes top predator fish.

Long-term concentration trends of toxic chemicals in the air.           Declining          Declining                7%      Annual decrease

Total phosphorus concentrations  (long-term) in the Lake Erie          Improving          Improving                 10      Ug/1
Central Basin.

Long-term dissolved oxygen depletion trend in Lake Erie.                                  Limited                3.11      Mg/1



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
              picograms 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.


Mexico Border Outreach

In 2003   Develop air quality assessments and improvement programs to attain air quality standards in border communities.

In 2003   Expand hazardous waste management and pollution prevention practices in the maquiladoras.

Performance Measures:                                       FY2001           FY2002           FY2003
                                                           Actual            Enacted           Request
U.S. cities along the Mexico Border region carrying out  air                                                         1      cities
emissions inventories.

 Number of maquiladoras that have implemented pollution                                                       314      maquiladoras
prevention controls after a site assessment visit, workshop, or
training session.



Baseline:  Many border area residents are exposed to health-threatening levels of air pollutants including ozone, particulate matter, carbon monoxide and
              sulfur dioxide. The need to evaluate levels of targeted air pollutants is particularly urgent in heavily populated urban areas where air quality
              problems are compounded  by emissions from increasing numbers of vehicles - many of which are older and poorly maintained; extensive
              industrial activity; and numerous air sources (e.g., unpaved roads, waste disposal fires). To date seven out of the 14.sister-city pairs have air
              quality networks established and operating.



Verification and Validation of Performance Measures


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, (cumulative)


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 populations
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)
4) Status Report on the Water-Wastewater Infrastructure Program for the U.S.-Mexico Borderlands,
January, 2001.

QA/QC Procedures: Headquarters is responsible for coordinating submission of and evaluating quarterly
reports from EPA Regional Offices on these drinking water and wastewater sanitation projects.

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.
hrtp://www.epa.gov/glnpo/glindicators/fishcontaminants.html

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 EPA
quality management order and is audited every 3  years in accordance with Federal policy for Quality
Management.
Data Quality Review: GLNPO's quality management system has been given "outstanding" ratings in
previous peer and management reviews. GLNPO has implemented all recommendations from these external
audits and complies with Agency Quality standards.

Data Limitations: There is greater uncertainty regarding the representativeness of data pertaining to near
shore areas because of the greater variability of the near shore environment. GLNPO will be able to quantify
uncertainty for data in each reported area.  In 2002,  GLNPO is seeking documentation of how samples are
collected and what they represent in order to quantify uncertainty for data in each reported area. Limitations
of the field sampling and design information will be addressed through the field audits mentioned above.
The field sampling aspects of the program are voluntary partnerships with the states, thus limiting Federal
oversight.

New/Improved Data or Systems:  The GLENDA database is a  significant new system with enhanced
capabilities. Existing and future fish data will be added to GLENDA.

Performance Measure: Concentration trends of toxic chemicals in the air.
http://www.epa.gov/glnpo/gliridicators/atmospheric.htnil

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Performance Database: Great Lakes National Program Office (GLNPO) integrated atmospheric deposition
network (lADN) operated jointly with Canada.

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 EPA
quality management order and is audited every 3 years in accordance with Federal policy for Quality
Management.

Data Quality Review: GLNPO's quality management system has been given "outstanding" ratings in
previous peer and management reviews.  This program has a joint Canadian  US  quality system and
workgroup that meets twice a year. GLNPO has implemented all recommendations from these external
audits and complies with Agency Quality standards.

Data  Limitations: The  sampling design is dominated  by rural  sites  that under emphasize urban
contributions to deposition; thus although the data is very useful for trends information, there is less
assurance of the representativeness of deposition to the whole lake.  There are gaps in open lake water
column organics data,-thus limiting our ability to calculate atmospheric loadings.

New/Improved Data or Systems: GLNPO expects to post joint data that has passed quality review to <
http://binational.net/ > , a newly created joint international web site.

Coordination with Other Agencies

Mexican Border

       Over the last several years, EPA has continued to work with the U.S. and Mexican sections of the
International Boundary and Water Commission to further our efforts to improve water and wastewater
services to communities within 100 km of the U.S.- Mexico Border. Recently, 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, to assist communities
on both sides of the border in coordinating and carrying out environmental infrastructure projects.  The
agreement between Mexico and the United States furthers the goals of the North American Free Trade
Agreement and the North American Agreement on Environmental Cooperation.

       To this purpose, the governments established two international institutions:

       The Border 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.
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       The 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 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 1994, $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. EPA has joined with states, Tribes, and Federal agencies that have stewardship responsibilities for
the Lakes  in developing a new Great Lakes Strategy,  In addition to the eight Great Lakes States and
interested Tribes, partners to the plan include the Army Corps of Engineers (Corps), the Coast Guard, the
Fish and Wildlife Service (USFWS), the U.S. Office of Geological Survey, the National Oceanic and
Atmospheric Administration (NOAA), and the Natural Resources Conservation Service (NRCS).  The
Strategy joins environmental protection agencies with natural resource agencies in pursuit of common goals.
 These organizations 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. EPA also coordinates with these partners regarding development and implementation of Lakewide
Management Plans for each of the Great Lakes and for Remedial Action Plans for the 31 U.S,/binational
Areas of Concern.

Marine and Arctic Environments

       EPA has a number of joint projects underway addressing radioactive  and non-radioactive
contamination threats to  the Arctic environment  and  ecosystems, including  Alaska and indigenous
populations of the Arctic Rim. Domestic partners include the Department of Defense, Department of State,
Agency for International Development. International partners are the Government of Norway (Ministry of
Foreign Affairs) and the Government of Russia (Ministries of Atomic Energy and Transportation). Three
projects address radioactive contamination from Northwest Russia. One, focuses on providing processing
capacity for low-level liquid radioactive waste in Murmansk, Russia., two other projects address the safe
storage of spent nuclear fuel  from decommissioned Russian nuclear submarines.   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.
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       The major goals of the Russia PCB project are to 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 ultimate objective is to provide
a technical foundation for Russian acceptance of the Protocol on POPs under the Long-Range Transport of
Air Pollutants (LRTAP) Convention, as well as the Stockholm Convention on POPs. The Dioxins and
Furans Project and the Obsolete Pesticides Projects are addressing the other problems that Russia  has
identified as obstacles to its acceptance of these international agreements and/or implementing instruments.
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 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
Federal Insecticide, Fungicide, and Rodenticide Act
Organotin Antifouling Paint Control Act
Annual Appropriation Acts

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
North American Free Trade Agreement

US-Mexico Agreements
North American Free Trade Agreement
LaPaz Agreement
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                                Environmental Protection Agency

               FY 2003 Annual Performance Plan and Congressional Justification

                   Reduction of Global and Cross-border Environmental Risks

Objective: 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)
                                          FY2001
                                          Actuals
             FY 2002
             Enacted
             FY 2003
             Request
            FY 2003 Req.
           v. FY 2002 Ena.
Reduce Greenhouse Gas Emissions.
Environmental Program & Management
Science & Technology
Total Workyears
$149,610.2
$101,170.3
 $48,439,9
    347.1
$145,293.6
 $96,767.2
 $48,526.4
    317.3
$136,953.4
 $98,104.8
 $38,848.6
    303.9
($8,340.2)
 $1,337.6
($9,677.8)
    -13.4
                                          Key Program
                                      (Dollars in Thousands)

Administrative Services
Climate Change Research
Climate Protection Program: Buildings
Climate Protection Program: Carbon Removal
Climate Protection Program: Industry
Climate Protection Program: International Capacity
Building
Climate Protection Program: State and Local
Climate Change Program
Climate Protection Program: Transportation
Congressionally Mandated Projects
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
Regulatory Development
Technical Cooperation with Industrial and
Developing Countries
FY2001
Enacted
$234.6
$22,550.4
$52,535.0
$997.8
$31,929.6
$5,501.7

$2,494.5

$29,435.1
$1,371.9
$4.612.6
$269.9
$2,525.1
$65.8
$762.0

FY 2002
Enacted
$0.0
$21,350.5
$48,571.3
$1,549.7
$25,368.6
$6,982.8

$2,245.6

$30,830.7
$750.0
$4,461.0
$328.2
$2,855.2
$0.0
$0.0

FY 2003
Request
$0.0
$21,729.3
$49,820.5
$1,576.3
$25,673.1
$7,086.5

$2,275.2

$21,567.2
$0,0
$4,019.1
$354.5
$2.851.7
$0.0
$0.0

FY 2003 Req.
v. FY 2002 Ena.
$0.0
$378.8
$1,249.2
$26.6
• $304.5
$103.7

$29.6

($9,263.5)
($750.0)
($441.9)
$26.3
($3.5)
$0.0
$0.0

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FY 2003 Request

       EPA is meeting the U. S. climate change obj ectives by working in partnership with businesses
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 FY 2003, EPA expects to continue the significant accomplishments of its Climate
Protection Programs (CPPs). 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.

       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, policies and practices, and transportation choices.
 We currently expect that ten years from now more than half the nation's anthropogenic greenhouse
gas emissions will come from equipment purchased between now and then. Thousands of equipment
purchases are made every day, and often people buy the equipment that is the least efficient, thereby
committing themselves to higher energy bills for 10 to 20 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).

       EPA manages a number of efforts, such as the ENERGY STAR programs and the EPA Clean
Automotive Technology (CAT.) initiative, to remove barriers in the marketplace and to 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; low
incentives to manufacturers for efficiency research and development (R&D); and lack of awareness
about more energy efficient transportation choices.

       The Agency will continue activities that provide co-benefits to other countries and to the
global commons.  Global reductions in greenhouse gas emissions can be achieved by recognizing
and providing support for in-country environmental issues, such as local air quality, energy access
and efficiency, cleaner  production, transportation alternatives, and solid waste management (for
methane reduction).

       Some  of EPA's  newest voluntary  programs are particularly timely.   These partnership
programs 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 FY 2002, the Agency began forming partnerships and initiated a
number of transportation efforts focusing both on the industry and state and local sectors, including a
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program to implement voluntary ground freight management practices as well as technologies that
can substantially improve load scheduling and load matching logistics, reduce truck engine idling,
and improve truck fuel efficiency,

Research

       EPA's Global Change Research Program is an assessment-oriented program that evaluates
the potential consequences of global change for human health, ecosystems, and social well-being in
the United States.  The Program's assessment process brings together 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 provide 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 research planning decisions. Through this  process, assessors
integrate insights from diverse research disciplines to address real-world questions. For example,
stakeholders have expressed concern about an increase in the spread of certain diseases as a result of
climate change. In response, assessors have integrated 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.  This methodology is now being used on an
ongoing basis by public health officials in the Four Corners region of the Southwest.

Program Accomplishments

       EPA has had substantial success across its CPPs and global change research efforts. Through
FY 2001, EPA's CPPs (see Table 1) substantially reduced emissions of carbon dioxide and other
greenhouse gases such as methane and perfluorocarbons (PFCs).  Since the  mid-1990s, these
programs have reduced U.S. greenhouse gas emissions by more than 235 million metric tons carbon
equivalent (MMTCE) below business-as-usual, equivalent to the emissions of 160 million cars for
one year. At the same time, families and businesses saved an  estimated $24 billion on their energy
bills and keeping roughly 550,000 tons of smog-forming nitrogen oxide (NOX) pollution from
entering the air.  In FY 2001, EPA implemented 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 2001 will continue to deliver environmental and
economic benefits through 2010 and beyond. EPA currently estimates that based on investments in
equipment already made due to EPA's programs through 2001, organizations and consumers across
the country will net savings of more than $60 billion through 2010, and greenhouse gas emissions
will be reduced by more than 450 MMTCE through 2010 (cumulative reductions based upon
estimated 2001 achievements). These programs continue to be highly cost-effective approaches for
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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 CCb) 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 FY 2001 alone, the CPPs*:

*      reduced greenhouse gas emissions by more than 65 MMTCE;
•      reduced energy consumption by an estimated 80 billion kilowatt hours;
*      successfully demonstrated 80 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 drivetrain; and
*      worked with 10 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.

       * EPA is on track for each of these accomplishments. Final results will be available in
       calendar year 2002.

       These are the four primary performance goals for  EPA's CPPs under the Government
Performance and Results Act (GPRA).  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.
Performance measures have not been met in two areas: transportation and industrial C02 programs.
Both of these programs have undergone program restructuring and are expected to reduce greater
greenhouse gas emissions in FY 2003 and beyond.
                                         VI-24

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                                      Table 1: EPA's Climate Protection Programs
Sector
Buildings
Program
 ENERGY STAR
Activity/Initiative
                                                              Buildings
                                                              Labeled Products
                                                              Homes
Industry
 Carbon Reduction Programs (CO2)
                                                              ENERGY STAR for industry (formerly Climate Wise)
                                                              Combined Heat and Power Partnership
                                                              Green Power Partnership
                                                              Industry Partnerships
                                                              Waste Wise
                       Methane Programs (CH4)
                                                              Natural Gas STAR Program
                                                              Landfill Methane Outreach Program
                                                              Coalbed Methane Outreach Program
                                                              Agricultural Programs (Ruminant Livestock Outreach andAgSTAR)
                                                              Landfill Rule
                       Programs to Reduce High Global Warming
                       Potential Gases (MFCs, PFCs, SF6)
                                         Voluntary Aluminum Industrial Program
                                                              PFC Emissions Reduction Partnership for the Semiconductor Industry
                                                              SF6 Emissions Reduction Partnership for the Electric Power System
                                                              SF6 Emissions Reduction Partnership for the Magnesium Industry
                                                              Partnership with HCFC-22 manufacturers to reduce HFC-23 emissions
                                                              Significant New Alternatives Program (SNAP)
Transportation
                       Transportation Efficiency Programs
                                        Commuter Choice Partnership Programs
                                                              SmartGra»'th & Brownfields Policies Programs
                                                              Transit
                                                              Green Vehicle Labeling Program
                                                              Clean Air Transportation Communities Program
                                                              Ground Freight Transportation Initiative
                                                              Variable Priced Vehicle Insurance Initiative
                       Clean Automotive Technology (CAT)
                                                              Support Cooperative Research and Development Agreements (CRADAs)for
                                                              Advanced Engine and Powerfrainsfor Hydraulic Hybrid SUVs and Urban
                                                              Delivery Vehicles	
Carbon Removal
State and Local Climate Change Outreach Program
International Capacity Building
Global Change Research
                                                        VI-25

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      Through FY 2001, 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 45
      million cars for the year.

      EPA's climate change programs have met their greenhouse gas reduction goals through FY
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
                     Annual Achievements
                     Annual Goals
             1995    1996    1997   1998    1999   2000    2001
                    The FY 2001 final results will be available in Spring2002.


  The programs have a number of accomplishments through the end of FY 2001 that are
highlighted in Tables 3, 4, 5, and 6 for the buildings, industry, transportation and other sectors,
respectively.
                                       VI-26

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                Table 2.  Goals and Accomplishments for Performance Measures: 1997 through 20031


Program Area/_
Key Gases


Buildings
Industry •




CO2
CH4
PFCs,
SF8,
MFCs
Transportation
State and Local
Total
1997
Accomplished

kWh
Saved
(billion)
21
na
na
na


na
na
21
MMTCE
reduced
4.4
3.0
4.8
8.5


0.2
1,2
22.1
1998
Accomplished

kWh
Saved
(billion)
35
na
na
na


na
na
35
MMTCE
reduced
7.2
4.8
5.9
10.4


0.3
1.3
29.9
199&
Accomplished

kWh
Saved
(billion)
61
na
na
na


na
na
61
MMTCE
reduced
12.5
5.3
8.3
155


1.1
1.4
43.6
2000
Accomplished

kWh
Saved
(billion)
74
na
na
na


na
na
74
MMTCE
reduced
15.2
5.5
13,8
21 .45


1.7
1,7
59.3
2001 2
Goal/Accomplished

kWh Saved
(billion)
80
na
na
na


na
na
754/80
MMTCE
reduced
15.04/16.3
9.14/5.8
15,14/15.2
18.24'5/24.1


6.24/1.9
1.9*/1.9
65,54/65.2
20023
Goal

kWh Saved
(billion)
na
na
na
na


na
na
854
MMTCE
reduced
17.2" :
6.34'6
16.34
21. 94'5


2.14'8
2.04
65.8"
20033
Goal

kWh
Saved
(billion)
na
na
na
na


na
na
954
MMTCE
reduced
19.54
B.5"
17.54
2S.64'5


2.446
2.04
73.54
'Metrics are not applicable to CAT, International Capacity Building or Global Change Research. The accomplishments of many of EPA's voluntary programs are
        documented in The Power of Partnerships: Energy Star and Other Voluntary Programs^ Climate Protection Partnerships Division 2000 Annual Report, EPA
        430-R-01-009, July, 2001. Some program accomplishments from previous years may be different from those reported in  last year's budget justification as new
        information from program partners is incorporated and program evaluation methodologies are refined.
2These results are estimates. Final results will be available in Spring 2002.
32002 and 2003 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.
4QPRA performance measure
'These goals and accomplishments do not include EPA's efforts on self-chilling cans, which resulted in the avoidance of potentially significant emissions of HCFCs into
        the atmosphere.
'T'hese goals have been revised to reflect major program restructuring. For example, the goals for the Transportation Program Area include GHG reduction goals for the
        Transportation Partner Program through 2001. The 2002 Transportation goal has been revised downward to reflect the elimination of the Transportation
        Partners Program, The revised estimates in each area are based on preliminary results submitted for the Third National Communication to the U.N. FCCC.
                                          VI-27

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                Table 3.  Program Accomplishments for EPA's Buildings Initiatives Through 2001
Program Area
                                                A ccomplishments
          The ENERGY STAR Buildings Partnership represents 17 percent of the U.S. building floor space,
          EPA has been successful with its public-sector work. With partnerships with more than 250.colleges and universities and over 220 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. Over 280 K-12 schools have earned the label.
          EPA continues to work with small businesses and organizations to help them lower their overhead through lower energy bills. Over 5,900 small
           businesses and organizations are working with ENERGY STAR.
          EPA worked with building owners to offer a new  benchmarking tool that identifies the  most efficient 25 percent of the commercial building stock
           with the ENERGY STAR label.  EPA developed this tool for office buildings; K-12 schools were added in 2000.  In2001 EPA launched the
           ENERGY STAR label for grocery stores, hospitals, and hotels and is working to expand it to  other key building types such as warehouses, post
           offices, and convenience stores.
          Also in the public sector, EPA worked with over 220 state and local governments and organizations to overcome key financing and budgeting
           barriers which continue to be a major hurdle to energy efficiency projects in the public sector. In 2001, EPA developed and delivered financing
           training (either .directly or via the web) to 12 Federal departments and offices, 22 states, 61 local governments, and 69 school districts.
          ENERGY STAR no.w has over 80 commercial real estate partners representing over 2.6 billion square feet comprising an estimated 80 percent of the
           office properties market.  In addition, in FY 2001 ENERGY STAR was endorsed by four influential commercial real estate industry associations
           including the National Association of Real Estate Investment Trust and the Society of Industrial and Office Realtors.
   I
   I
   tu
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 2001.
ENERGY STAR performance specifications were developed for new product categories including set-top boxes, traffic signals, dehumidifiers, water
 coolers, ventilation fans, ceiling fans, telephony, light commercial HVAC, and reach-in refrigerators and freezers.
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 1,700 manufacturing companies have partnered with ENERGY STAR. They produce ENERGY STAR-labeled products across more than 30
 product categories. More than 750 million labeled products have been purchased.
EPA has engaged more than 10.0 utilities/energy service providers that serve approximately 50% of the households in the U.S. in promoting ener
 efficiency with the ENERGY STAR label.
The program has partnered with more than 800 retailers to promote ENERGY STAR products in more than 7,000 storefronts.across the country.
An international agreement was finalized allowing Canada 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 continues to promote 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 and a home energy benchmark tool.
          EPA worked in partnership with more than 10 utilities and other companies to develop regional programs that promote improved duct sealing,
           improved home sealing, and overall improved home performance packages for the homeowner.
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                Table 4. Program Accomplishments for EPA's Industry Initiatives Through 2001
Program Area
                                               A ccomplishments
  Carbon
 Reduction
 Programs
             ENERGY STAR for industry (formerly Climate Wise). EPA successfully integrated Climate Wise into the ENERGY STAR platform. The
              program now has about 500 partners representing 14% of the U.S. industrial energy use.
             The program continued to provide technical assistance to its partners based on the technical materials developed through the Climate Wise
              program and explored new technical tools with program partners that could assist companies in understanding better where cost-effective
              opportunities for energy efficiency improvements exist.  As a result, EPA will pursue development of energy and productivity
              benchmarking tools at the level of the company and the level of the  facility.
             EPA launched the national Combined Heal and Power Partnership, working with industrial partners to convert several hundred industrial
              boilers to clean, efficient, gas-fired CHP. The partnership worked with specific market segments, including district energy, industry,
              commercial buildings, and high power quality reliability applications.
             EPA recognized the second round of CHP Award-winners in 2001.
             EPA continued to explore opportunities for regulatory flexibility to recognize the environmental benefits of CHP applications, including
              issuance of draft guidance for NSR source determinations.
EPA launched the Green Power Partnership which will work with 20 founding partners and local governments to encourage green power
 purchases.
The partnership announced 40 new corporate or local government green power purchases.
The partnership launched efforts vyith states to promote customer choice through electricity restructuring in an environmentally friendly
              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.
              EPA completed development of a corporate greenhouse gas inventory methodology and tracking mechanism.
              Waste Wise now has more than 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 75 Federal organizations as members in 2001.
              WasteWise initiated a sector challenge on electronics waste reduction which now includes 34 partners.
              EPA worked with key industry, government and NOO 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 77% of transmission pipeline miles, 51% of distribution pipeline miles, 40% of natural gas
 production, and 58% of gas processing.
The Landfill Methane Outreach Program ILMOP) assisted in the development of over 20 new landfill gas-to-energy projects (bringing the
 total to over 200) with an additional 140 projects under construction and expected to be online soon. The LMOP provided technical and
 marketing support to another 150 landfills and signed on 35 new  partners, bringing the total LMOP partner base to 280.
The Coalbed 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.  About 16 million kWh/yr of renewable energy was produced from farms capturing methane to provide energy for local
 communities.
 Programs to
Reduce High
   Global
  Warming
  Potential
   Gases
EPA continued work with 10 of the 11 U.S. primary aluminum producers representing 22 of the 23 U.S. smelters increase reductions over
 our 2000 goal and to better understand the generation of PFCs in the smelting process and to quantify smelter-specific emissions.
EPA expanded the electric power systems partnership to reduce SF6 emissions to 64 partners representing over 50% of net generating
 capacity. More than 80% of SFs sales are to this sector.
EPA expanded the magnesium (Mg) industry partnership to reduce SF6 emissions to 16 partners representing 100% of primary Mg
 production and 70% of domestic casting capacity. ( 80% of US Mg emissions).
EPA renewed its voluntary partnership with 20 U.S. semiconductor manufacturers representing 70% of the industry's emissions.  In the
 new MOU, EPA's semiconductor partners have established a goal to reduce PFC emissions 10% below their 1995 baseline by 2010.
EPA partners with 100% of the U.S. HCFC-22 producers.  These partners use process optimization arid abatement to reduce production by-
 product emissions of HFC-23, which is the most potent and persistent of the MFCs.
SNAP reviewed and listed 31 substances as acceptable alternatives to ozone-depleting chemicals in over 125 end-uses for a combined total
 of over 400 acceptable alternatives listed; 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 and adoption of responsible use practices by the fire protection industry for gases with high global
 warming potential.
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Table 5. Program Accomplishments for EPA's Transportation Initiatives Through 2001
Program Area Accomplishments
Transportation
Efficiency
Clean Automotive
Technology
EPA launched the Voluntary Ground Freight Initiative and the Variable Priced Insurance Initiative.
GHG Emission reduction estimates completed for 3rd National Communication Report to the U.N. FCCC. Updated GHG
inventory estimates were published on schedule, and work has started on a separate Transportation Sector GHG report.
EPA held an international transportation and climate workshop in April 2001.
EPA signed and is supporting over 200 Commuter Choice Partnership Agreements with a range of industries, businesses,
universities, and state and local governments representing over 1 50,000 employees. In addition, a national network of
employer recruiters has been established, and a working partnership with US DOT is in place.
EPA is implementing the National SIP Land Use Policy and has partnered with 6 state and local governments to recognize the
transportation emission reduction benefits of smart growth and voluntary land use policies. Two new analytic tools are being
developed that will assist governments interested in quantifying the emission benefits associated with Transit Oriented
Development and mixed use developments.
Final pilot year for 60 communities implementing EPA/DOT's "It All Adds Up to Cleaner Air." Creation of more formal
partnership program. Development of the Alliance for Clean Air and Transportation, a national partnership of Federal
agencies and national health, transportation, industry and environmental organizations committed to developing consistent
national messages around air quality and transportation Initial year saw over 20 organizations joining the executive
committee.
EPA developed and launched the Clean Air Transportation Communities Program to spur innovation and measurable
reductions in transportation-related emissions by decreasing vehicle miles traveled and increasing use of cleaner technologies.
First 10 award recipients selected. Recipients will implement innovative pilot projects at the state, regional, local and Tribal
level. These are two-year awards.
EPA demonstrated 80 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.
Program Area
                    Table 6. Program Accomplishments for Other Initiatives Through 2001
                                          A ccompllshments
 'arbon Removal
The carbon sequestration program continued to work collaboratively with the U.S. Department of Agriculture (USDA) on
 domestic pilot programs, designed to address major issues related to implementation of sequestration projects both domestically
 and internationally.
EPA continued to enhance its 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 has 39 state partners, representing approximately 80% of U.S. carbon dioxide emissions.
EPA increased state and local capacity to quantify greenhouse gas emissions and develop and implement actions to reduce
 greenhouse gases: 36 states have completed greenhouse gas inventories, 3 states (Oklahoma, Wyoming, West Virginia) initiated
 inventories in 2001; 21 states have developed greenhouse gas action plans, 2 states (Maryland, Rhode Island) initiated
 greenhouse gas action plans. EPA developed analytical tools to support future state greenhouse gas inventories.
Twenty-two U.S. cities joined the "Cities for Climate Protection Campaign" bringing total U.S. participants to 109, with a
 combined population of over 44 million.
EPA has funded 16 state and local demonstration projects throughout the U.S. since 1990. Projects completed or underway have
 achieved total emissions reductions of approximately 2 MMTCE per year.
EPA completed and distributed over 4,200 copies of the EPA State and Local Climate Change Outreach Kit to educate
 stakeholders on the science, impacts, resources and solutions addressing climate change.
EPA published the NOx Set-Aside Measurement and Verification Guidance.
EPA continued to work with city and state governments to help them estimate the potential environmental benefits associated
 with heat island reduction measures.
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 an award-
 winning website.
                                                           VI-30

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          Table 6. Program Accomplishments for Other Initiatives Through 2001 (continued)
 'rogram Area
                                   A ccomplishments
  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 coal 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 the Agency for International Development (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 evaluated and approved 52 voluntary projects, involving over $2 billion in
 potential investments, of which $700 million has been committed, in more than 2.6 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. Current programs will reduce greenhouse gas emissions in 2010 by 8 MMTCE,
EPA, in cooperation with AID, DOE, and the State Department, supported the Technology Cooperation Agreements Pilot Project
 with 7 developing countries. Existing programs are models for international technology transfer programs and will substantially
 reduce greenhouse gas emissions in key countries.
EPA's Integrated Environmental Strategies Program, with cooperation from AID, assisted 8 developing countries to evaluate the
 environmental and human health benefits of technologies and policies for reducing greenhouse gas emissions. Four of these
 countries produced initial evaluations and implementation plans for multiple benefits strategies.EPA initiated a new international
 transportation outreach program to improve GHG Inventories and advance mitigation strategies with developing countries.
 Global Change
    Research
EPA determined the impacts of global change on coastal ecosystems in the Gulf Coast, Mid-Atlantic, and Great Lakes.
EPA completed 3 assessments - Mid-Atlantic, Great Lakes, & Human Health- of the potential consequences of global change &
 climate variability for the USGCRP National Assessment.
EPA assessed the potential impacts of climate changeand variability for public health.	
Program Goals and Objectives for FY 2003 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, SOa, 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 transferring the highly efficient hybrid powertrain components, originally
developed for passenger car applications, to meet the more demanding size, performance, durability,
and towing requirements of Sport Utility Vehicles (SUVs) and urban delivery vehicle applications,
resulting in increased fuel economy.
        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, cost-
effective renewable energy, and greater transportation choices.  EPA will continue to work closely
with state and local partners to assess the air quality,  health,  and economic benefits of reducing
greenhouse gas emissions and  developing practical risk reduction strategies.  It will establish
                                                 VI-3T

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international partnerships that will link industrial efficiency, reduction of greenhouse gases, and
sustainable development. In FY 2003, EPA's climate change programs are projected to:

•      reduce greenhouse gas emissions from projected levels by more than 73.5 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 95 billion kilowatt
       hours annually;
•      reduce other forms of pollution, including air pollutants such as NOX, participate matter and
       mercury  from  energy efficiency and reduce water pollution  (from  better  fertilizer
       management.) NOX emissions will be reduced by over 205 thousand tons;
•      contribute to over $ 11 billion in net energy bill savings to consumers and businesses that use
       energy efficient products for the year;
•      demonstrate technology for a hydraulic-hybrid SUV system that achieves at least 20%
       better fuel economy than the typical baseline vehicle (24.2 mpg based on a "typical" 20.2
       mpg baseline SUV);
•      provide more flexible  and energy  efficient alternatives for  commuters  and  freight
       transporters, and reduce vehicle miles traveled by more than two billion miles;
•      assist 10 key developing countries and countries with economies-in-transition in building
       their capacity to reduce emissions of greenhouse gases through cost-effective measures and
       participate  actively in international discussions of climate protection and assist in the
       fulfillment of the U.S. obligations under the 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 will be working towards the following goals in each of the following program areas
over the next ten years:

•      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 about 43 MMTCE annually in greenhouse gas
       reductions by 2010 while saving businesses and consumers  more than $14 billion.  The
       efforts necessary in FY 2003 to continue to achieve these 2010 goalsare detailed in Table 7.
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Industry:  EPA will continue to build on the success of the voluntary programs in the
industrial sector, focusing on reducing CO2 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; (3) cost-effectively
limit emissions of the more potent greenhouse gases (MFCs, PFCs, SFe); and (4) facilitate
the use of clean energy technologies and purchases of renewable energy. EPA's goal is to
deliver an estimated 85 MMTCE annually by 2010 from these efforts. The efforts necessary
in FY 2003 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 access to jobs, health care,
education and recreation.  EPA's Variable Priced Auto Insurance initiative also shows
tremendous potential for partnering with the insurance industry commissioners to provide a
voluntary incentive for less driving.

EPA will continue its Clean Automotive Technology (CAT) initiative to develop advanced,
clean and fuel efficient automotive technology in accordance with the National  Energy
Policy (NEP) directive to use  technological advances to better protect the environment and
save energy.  EPA has demonstrated the potential of its break-through technologies to
provide dramatic fuel economy improvement in cars, and this technology can be transferred
to SUVs and urban delivery vehicles and will have  an unprecedented impact  on  fuel
consumption. CAT includes research activities and Cooperative Research and Development
Agreements (CRADAs) with the  automotive  industry covering both SUVs and urban
delivery vehicles. This initiative will help enable the  transfer of patented technology to
SUVs and urban delivery vehicles - a critical target for improving the U.S. fleet miles per
gallon.

During FY 2003, CAT will  continue to  meet  its CRADA commitments by developing
advancements for engine and powertrain technology for hydraulic hybrid vehicles. EPA
will collaborate with its CRADA partners to transfer the unique EPA-patented, highly
efficient hybrid engine and powertrain components, originally developed for passenger car
applications,  to meet the  more demanding size, performance, durability  and  towing
requirements of SUVs and urban delivery vehicle applications while being practical and
affordable with ultra low emissions  and ultra  high fuel  efficiency.  The successful
technology  development  under  CAT  has  laid  the foundation for  cost-effective
commercialization  of high fuel economy/low  emission vehicles for delivery to market
between 2005 and 2010.  The R&D development under the CAT initiative has stringent
criteria emission goals supporting EPA's clean air mission through new stringent emission
standards.  This initiative will yield technologies that will allow future SUV and urban
                                  VI-33

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delivery vehicles to be simultaneously very efficient and very clean. On a per-vehicle basis,
these technologies will generate a 50% reduction in greenhouse gas emissions relative to
current baseline vehicles.

EPA's Clean Automotive Technology initiative will provide the following benefits.
«      Allow EPA to develop unique engine and hybrid technology for SUVs and urban
      delivery vehicles, resulting in increased SUV fuel efficiency of 30% (from 2001
      baseline of 20.2 mpg) by 2006 and up to 100% by 2010.
•      With the successful development and adoption of this cost effective and practicable
       technology (facilitated by complementary policies), we estimate the eventual market
       penetration for this technology to be up to 40-50% in 2020.
•      This would result in potential annual fuel savings of up to 8 billion gallons (4%
       below business-as-usual) or the rough equivalent 25 MMTCE reduced in 2020 (from
       light duty trucks including SUVs.)

EPA will also support DOT and the Treasury Department in implementing any change to
the CAFE standards and vehicle tax credits for hybrid and fuel-cell vehicles.

The efforts necessary in FY 2003 to achieve these goals are detailed in Table 9.

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 USD A 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's goal is to achieve a carbon removal potential of up
to 2.5 MMTCE by 2010. The efforts necessary in FY 2003 to achieve these 2010 goals are
detailed in Table 10.

State and  Local:  States and localities have a significant and important role in reducing
greenhouse gases, provided they are equipped with the tools they need to integrate climate
change into their daily decisions. The State and Local program responds to this need by
providing guidance and technical information about the air quality, health, and economic
benefits of reducing greenhouse gas emissions and developing practical risk reduction
strategies. EPA will continue its efforts  to build capacity and to provide state and local
governments with technical, outreach and/or education services about climate change
impacts, mitigation and adaptation, and related issues so that state and local governments
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may more effectively address their environmental and economic goals in a comprehensive
manner.  These efforts are detailed in Table 10.

International  Capacity  Building:  EPA is working with a number of key developing
countries on a voluntary basis to help them: 1) design and implement programs to increase
the use of low and zero greenhouse gas technologies; 2) identify, evaluate and implement
strategies for achieving multiple  social and health or economic benefits while reducing
greenhouse gas emissions; 3) design market-based systems to facilitate commitments by
these countries under the FCCC as well as the infrastructure necessary to ensure compliance;
and 4) accurately assess GHG emissions from the transportation sector and implement less
energy intensive transportation strategies.  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 and zero 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 FY 2003 to meet these goals are detailed in Table 10.

Global Change Research: EPA is one often Federal agencies contributing to the National
Assessment  activities organized through the U.S. Global Change Research Program
(USGCRP).  The National Assessment is an ongoing process mandated by Global  Change
Research Act of 1990, with periodic reports to Congress which began hi FY 2000 and occur
not less than every four years thereafter. In FY 2003 the Global Change Research Program
will continue to support the ongoing U.S. National Assessment and other related USGCRP
assessment activities.

Consistent with  the EPA's 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 UV-B radiation will be investigated in FY 2003. This research
will focus on building the capacity to assess global change impacts  on air quality by
downscaling meteorological data to regional scales and quantifying the effects of advanced
fuel/vehicle combinations. Other components of these research and assessment activities
will focus on producing an assessment report in FY 2003 on the potential effects  of climate
change on weather-related morbidity and reporting on interactive effects of UV-B and
temperature on corals.  To help assess impacts of UV-B on ecosystem and human health,
EPA will continue to operate the UV-B monitoring network.

The particular areas of focus for the research and assessment activities of the Global Change
Research Program are: (1) human health; (2) air quality; (3) water quality; and (4) aquatic
ecosystem health.  These activities  will develop integrated human health and ecosystem
health assessments.  In FY 2003, the program will continue to assess  the potential
consequences of:
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      •       Changes in extreme weather (heat and cold) for human mortality and morbidity;
      •       Changes in air quality;
      •       Climate and  land-use changes on water and vector-borne diseases;
      *       Climate change on aquatic ecosystems; and
      •       Climate change on water quality (pollutants and microbial pathogens).

      Significant FY 2003 research products are detailed in Table 10.
                     Table 7.  Buildings Programs: Description of Planned Activities
                                     Within FY 2003 Budget Request
ENERGY
  STAR
Buildings
Actively promote EPA's new buildings benchmarking tool and work with building owners and managers to benchmark
 a total of 29,000 buildings across office buildings, schools, Federal and state facilities, retail spaces, hotels/motels and
 post offices.
Award 2,750 additional ENERGY STAR labels to buildings that reach a benchmark score between 75 and 100.
Expand building energy performance benchmarking and outreach to five additional building and facility types
 providing benchmarking capabilities for more than 80% of the total U.S. floor space.
Continue to actively recruit new small businesses and .organizations into ENERGY STAR for small business to reach over
 7,000 participants by the end of 2003.
Expand public sector work to increase the number of partnerships with schools and universities and state and  local
 governments to over 1200.
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
Develop and implement a new public awareness campaign on energy efficiency to achieve 50% recognition of the
 ENERGY STAR label in the U.S.
Coordinate with utility and state partners representing more than 65% of U.S. households in the design and operation
 of effective state-level energy efficiency programs.
Review five new product categories such as vending machines commercial food service equipment, and air purifiers
 for potential expansion of the ENERGY STAR label.
Enhance ENERGY STAR labeled product quality through a review of performance specifications for five product
 categories such as office equipment and consumer electronics.
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 and Canada in implementing an energy efficiency
 labeling program for office equipment modeled after ENERGY STAR.
.Promote the purchase of about 160 million ENERGY STAR labeled products in 2003.
ENERGY
  STAR
  Homes
Over 50,000 new homes are expected to be constructed as ENERGY STAR in 2003.
Promote ENERGY STAR Labeled New Homes in 15 geographic areas,
Expand ENERGY STAR to include 80% of the housing stock of the national builders, Pulte, Ryan and Centex.
Expand ENERGY STAR in the modular housing industry to include 50% of their housing stock.
Achieve 50% 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 the national Duct and Home 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 benchmarking  as a major tool to spur homeowners to make energy efficiency home improvements.
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                     TableS. Industry Programs:  Description of Planned Activities
                                       Within FY 2003 Budget Request
 ENERGY STAR
  for industry
   (formerly
 Climate Wise)
Expand the ENERGY STAR program for industry to more than 440 industrial partners.
Enhance technical assistance provided to the industrial sector by developing energy and related productivity
 benchmarks of industrial plant performance for five additional U.S. industries.
Expand the energy peer exchange networking opportunities for U.S. industry and the ENERGY STAR partners by
 holding three 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 national CHP Partnership Program. The Partnership Program will work with several hundred
 industrial cOal-fired boilers in specific market segments for conversion to clean, efficient gas-fired CHP.
Develop more specific permitting guidance for CHP projects.
Promote recognition of CHP's benefits in environmental regulations.
 Green Power
   Initiative
Implement Green Power Partnership Program.  The program will work with founding partners and local
 governments to remove market barriers to renewable ("green") power purchases.  The program will work with
 over 100 corporate/local government green power purchases, allowing companies to receive recognition for the
 environmental benefits of their purchases.
Continue efforts working with states to promote consumer choice through electricity restructuring in an
 environmentally friendly manner.
   Industry
 Partnerships
Continue efforts with industry partners to help them better understand their greenhouse gas emissions and
 opportunities for cost-effectively reducing these emissions.
Continue to improve greenhouse gas tracking guidelines for industry.
  Waste Wise
Expand Waste Wise to include 1,400 partners.
Continue to provide direct technical assistance for resource management, a performance-based contracting
 approach to overcome market barriers to waste reduction in the waste service industry.
Continue Product Stewardship as 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, continue to pursue national targets for carpet recovery and meaningful increases in
 packaging recycling rates.
Continue 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.
                      Table 8. Industry Programs:  Description of Planned Activities
                                       Within FY 2003 Budget Request
                                                   (continued)
   Methane
   Programs
Expand the Natural Gas STAR program in all sectors to represent  85% of gas transmission pipelines, 59% of
 distribution service connections, 46% of domestic gas production, and 70% 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 continue to provide technical assistance
 to mining operations as well as monitor and analyze the results from two demonstration projects.
Expand the Landfill Methane Outreach Program (LMOP) to assist a total of 233 landfills with gas utilization
 projects, to promote newer energy applications, and to increase methane recover)' efficiency at existing projects.
In the agriculture sector, continue expansion of methane-reducing technologies, such as anaerobic digesters, to
 help ensure clean water and air for the livestock sector.
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  Programs to
  Reduce High
Global Wanning
 Potential Gases
The Voluntary Aluminum Industry Partnership (VAJP) 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.
Work with the U.S. 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 include
 partners 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 global-warming-potential  emissions from other key sources such
 as the military and ODS replacement industries.
SNAP expects to review and list 10 alternatives to ozone-depleting substances, focusing on the identification of
 safe and energy-efficient substitutes, including HFCs, for HCFCs in various sectors.
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                  Table 9. Transportation Programs:  Description of Planned Activities
                                        Within FY 2003 Budget Request
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. Maintain over 300 partners and extend to over 1,000 partners,
Expand implementation of the Ground Freight Management Initiative by increasing number of voluntary
 partnerships with freight industry to implement energy efficient technologies, freight management practices, and
 infrastructure opportunities (including E-commerce) that substantially reduce GHG and criteria air pollutants.
Create and launch Green Transportation Outreach Program. 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.
Continue implementation of Variable Priced Insurance Initiative through increased partnering with insurance
 industry. Work with automobile manufactures to integrate GPS systems with variable-price insurance options.
Expand implementation of the Clean Air Transportation Communities Program. Catalyze and support community
 innovations that result in measurable reductions in VMT and cleaner technologies. Maintain 10 state and local
 projects and expand to include an additional 10 projects.
Promote Smart Growth through the newly finalized SIP Land Use Guidance - Maintain 5 state and local
 partnership efforts and partner with an additional 5 states to further Smart Growth and Air Quality goals.
Continue Transportation Planning Partnerships to:  1) integrate induced travel estimates into metropolitan
 transportation plans; 2) establish regional methodology for capturing land use air quality benefits; and (3)
 undertake educational efforts to promote tools that will enhance smart growth efforts and transportation equity
 across U.S.
In partnership with DOT, assess and develop adaptation strategies to address the impact of sea-level rise and
 increased storm events on transportation infrastructure.
Continue implementation of the Outreach/Public Education Programs TRAQ 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 one 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.
    Clean
  Automotive
  Technology
    (CAT)
Continue engineering programs to transform the highly efficient light-duty engine and hybrid powertrain
 components to meet the more demanding size, performance, and towing requirements of personal Sport Utility
 Vehicles (SUVs) and urban delivery vehicles while demonstrating compliance with the Tier II and 2007 emission
 standards for diesel-cycle engines.   	            .	 	  	     •
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                           Table 10.  Other Programs: Description of Planned Activities
                                              Within FY 2003 Budget Request
    Carbon
   Removal
Continue to collaborate with USDA on the pilot projects and determine the viability of various carbon sequestration activities as
 quantifiable means of limiting greenhouse gas emissions.
Continue work on enhancing the ability of major macroeconomic models to evaluate the economic value of carbon sequestration
 and fully 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
Continue to assist state and local governments in initiating and updating greenhouse gas inventories assessing climate change policy
 impacts on state and local economies.
Assess and disseminate information about the multiple benefits of greenhouse gas mitigation, including environmental, health,
 energy, and economic benefits.
Finalize and distribute new tools and models that build understanding of the broader benefits of climate protection.
Integrate GHG emission reduction strategies in State Implementation Plans (SIPs), for states that want to provide credits for GHG
 reductions.
Develop tools to facilitate voluntary adoption of heat island reduction activities, including ways to integrate them into in SIPs.
Continue to build state and local capacity to address climate change through improved outreach tools and products, such as through
 improvements to the EPA Global Warming Site, creation of a best practices clearinghouse to promote multi-pollutant emission
 reduction strategies (e.g., energy efficiency, sustainability, clean energy, and other GHG mitigation measures}, an updated
 catalogue of state legislative activity related to greenhouse gases, and the identification and implementation of additional
 demonstration projects.
Translate key scientific findings 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 a strategic
 coastal response program,
 International
   Capacity
  . Building
Continue and expand cooperation with China, Mexico, Brazil, Korea, South Africa, and India.
Create an air quality and transportation policy toolkit which, in cooperation with the World Bank and other partners, would be
 shared with  12-16 countries.
Build the capacity in 4-5 major emitter countries (China, India, Russia, Brazil, and Indonesia) to develop reliable emission
 inventories in support of sustained emissions reduction strategies.
Enhance capacity for energy and GHG audits for selected industrial sectors (such as cement, iron, and steel) in 4-5 major emitter
 countries.
Establish regional energy and GHG information networks in three major regions of the world.
Build regional centers of financial expertise in Russia and China for climate and energy projects.
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.
Enhance international expert networks and cooperate with other organizations such as AID, the World Health Organization, UNEP,
 the World Bank, the Global Environment Facility, and state and local government partners in the U.S. to expand development and
 application of capacity for quantifying multiple benefits and to promote implementation of clean technology strategies.
Enhance capacity with partners in key developing countries, and promote implementation of voluntary programs and market-based
 mechanisms to expand utilization of clean technologies and greenhouse gas emissions reductions through market transformation.
Work with export credit agencies, international organizations, and commercial finance institutions to identify and overcome barriers
 to commercial  investment in clean technologies in developing countries.
Global Change
   Research
EPA will produce a final, comprehensive assessment report which quantifies the potential effects of climate change OB weather-
 related morbidity.
In support of the air quality assessments, EPA will produce an interim assessment of how technological changes may affect
 emissions of ozone precursors and PM.
EPA will produce a preliminary analysis of meteorological data and air quality using statistical methods.
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FY 2003 Change from FY 2002 Enacted

S&T:

   "   (-$750,000) The FY 2003 request is $750,000 below the FY 2002 Enacted budget level due to a
       Congressional earmark received during the FY 2002 appropriations process which was not
       included in the FY 2003 President's Request.

   "   (-$9,3 00,000) Of the original $26,400,000 in the Partnership for a New Generation of Vehicles
       (PNGV) program, EPA will target $17,100,000 for work with our CRADA partners under the
       Clean Automotive Technology (CAT) initiative to support continued development of unique
       engine and hybrid technology for SUVs and urban delivery vehicles, with no compromise in
       performance, safety,  or emissions. However, the $9,100,000 reduction will eliminate work on
       high-efficiency renewable fuel engines, as well as the development of a production prototype 85
       mpg family-size.

Research

S&T
   •   (+4,194,600, +1.0 FTE) Resources within this Objective will be shifted from human dimensions
       research to research focusing on the effects of global change on air quality, and the effects of
       global change on aquatic ecosystems. The air quality research will involve the development of
       models and methodologies for analyzing the consequences of global change on regional air
       quality, including downsealing global meteorology to regional meteorology; developing models
       and methodologies to address temporal and spatial scale issues for regional emissions drivers;
       and development of techniques to link technological change to changes in regional and local
       emission inventories. The aquatic ecosystem research will involve the development of scenarios
       and tools to support planned assessments of the impacts of global change on aquatic ecosystems.
       This research will include development of ecologically relevant scenarios of land use change;
       pathways from ecological functioning to aquatic ecosystem goods and services; human responses
       to global change; effects of global change on the distributions of invasive species; and effects of
       changing temperature, precipitation, land use, UV radiation and sea level rise on multiple aquatic
       ecosystems.

   •   (-$4,194,600, -1.0 FTE) This planned decrease within the Objective is a shift from human
       dimensions research and assessment activities, completed in FY 2002, to ecosystem and human
       resilience to global change, and research focusing on the consequences of global change on air
       quality.

   "   (+$255,200, +2.0 FTE) This increase will supplement ongoing research and assessment activities
       which contribute to the Second National Assessment. In particular, these activities will include
       an examination of the potential regional effects of global change (especially climate change and
       climate variability) on ecosystem health and ecosystem services in the United States. Particular


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          attention will be given to the direct and indirect effects of global change of aquatic ecosystems.

Annual Performance Goals and Measures
Reduce Greenhouse Gas Emissions

In 2003   Greenhouse gas emissions will be reduced from projected levels by approximately 73.5 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 2002   Greenhouse gas emissions will be reduced from projected levels by approximately 65.8 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   The date for this annual performance goal will not be finalized until mid 2002.

Performance Measures:

Annual Greenhouse Gas Reductions - All EPA Programs

Greenhouse Gas Reductions from EPA's Buildings Sector
Programs (ENERGY STAR)

Greenhouse Gas Reductions from EPA's Industrial
Efficiency/Waste Management Programs

Greenhouse Gas Reductions from EPA's  Industrial Methane
Outreach Programs

Greenhouse Gas Reductions from EPA's  Industrial
HFC/PFC Programs

Greenhouse Gas Reductions from EPA's Transportation
Programs

Greenhouse Gas Reductions from EPA's State and Local
Programs
FY 2001
Actual
6/30/02
6/30/02
6/30/02
6/30/02
6/30/02
6/30/02
6/30/02
FY 2002
Enacted
65.8
17.2
6.3
16.3
21.9
2.1
2.0
FY2003
Request
73.5
19.5
6.5
17.5
25.6
2.4
2.0
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 baseline is currently under
               review as part of the interagency evaluation process for preparing the Climate Action Report 2001.
Reduce Energy Consumption

In 2003   Reduce energy consumption from projected levels by more than 95 billion kilowatt hours, contributing to over $ 11 billion in energy savings to
               consumers and businesses.

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    The data for this annual performance goal will not be finalized until mid-2002.

Performance Measures:

Annual Energy Savings - All EPA Programs
FY2001
 Actual
    On track
FY2002
Enacted
          85
FY2003
Request
                                                95
                  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 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 baseline is currently under
               review as part of the interagency evaluation process for preparing the Climate Action Report 2001.
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Clean Automotive Technology

In 2003   Transfer hybrid powertrain components, originally developed for passenger car applications, to meet size, performance, durability, and towing
               requiremnts of Sport Utility Vehicle and urban delivery vehicle applications with an average fuel economy improvement of 20% over the
               baseline.

In 2002   Transfer hybrid powertrain components, originally developed for passenger car applications, to meet size, performance, durability, and towing
               requiremnts of Sport Utility Vehicle and urban delivery vehicle applications with an average fuel economy improvement of 15% over the
               baseline.
In 2001   Transfer hybrid powertrain components, originally developed for passenger car applications, to meet size, performance, durability, and towing
               requiremnts of Sport Utility Vehicle and urban delivery vehicle applications with an average fuel economy improvement of 10% over the
               baseline
Performance Measures:                                          FY2001            FY2002            FY2003
                                                               Actual              Enacted            Request
Fuel. Economy of EPA-Developed SUV Hybrid Vehicle over                 22.2               .23.2               24.2       MPG
EPA Driving Cycles Tested
Baseline:  The average fuel economy of all SUVs sold in the US in 2001 is 20.2 mpg.  Values for 2001,2002, and 2003 represent 10%, 15%, and 20%
               improvements over this baseline, respectively. The long-term target is to demonstrate a practical and affordable powertrain that is 30%
               more efficient by 2005, and 100% more efficient by 2010.

Research

Global Change Research - Human Health and Ecosyste

In 2003   Assess the potential effects of climate change on weather-related morbidity.

In 2003   Build the capacity to assess global change impacts on  air quality by downscaling meteorological data to regional scales and quantifying the
               effects of advanced fuel/vehicle combinations.

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 2002   Complete the problem formulation phase of an assessment of the consequences of global change on air quality at a regional level.

In 2002   Complete the problem formulation phase of an assessment of the consequences of global change on aquatic ecosystems at a regional level.

In 2001   Assessed the consequences of global change (particularly climate change and climate variability) on human health and  ecosystems.
Performance Measures:

Report on the potential effects of climate change on urban air
quality.

Preliminary report assessing potential health effects of global
change by linking human health and ecological risk.

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.

External review draft on the effects of climate change on
weather-related morbidity in the U.S.

External review draft of a report on the effects of global
change on air quality in the US.

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.

External review draft of a problem formulation report on the
effects of global change on aquatic ecosystems in the U.S.

Produce a final, comprehensive assessment report which
quantifies the potential effects of climate change on weather-
FY2001
 Actual
FY 2002
Enacted
FY2003
Request
                      09/30/2002
                                      report

                                      report

                                      assessment


                                      report


                                      Draft report

                                      analysis



                                      report

                                      report
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    Performance Measures:                                  FY2001          FY2002          FY2003
                                                        Actual           Enacted          Request
    related morbidity.

    In support of the air quality assessments, produce interim                                                    1      assessment
    assessment of how advancements in hydrogen/fuel cell and
    gasoline hybrid vehicles affect .emissions of ozone precursors
    and PM.

    Produce a preliminary analysis of meterological data and air                                                  1      analysis
    quality using statistical methods.

    Peer-reviewed reports for decision-makers and the public on                 3                                      reports
    the potential consequences of global change on 3 regions and
    on human health, which are the finished products of a multi-
    year effort.



Baseline:     In April 2000, the Health Sector Assessment Team participating in the first USGCRP National Assessment of the "Potential Consequences of
            Climate Variability and Change" published its Executive Summary. The entire assessment was published in May 2001 as a Special Issue of
            Environmental Health Perspectives. The Health Sector Assessment report identified key remaining research needs, which included weather-
            related morbidity effects. By the end of FY 2003, assessments will be completed of (1) heat-related morbidity in children; (2) the relationship
            between weather variability and violent crime; (3) the effects of inclement weather on accidents and injuries; and (4) the effects of extreme heat
            on emergency room visits and hospital admissions.

            Air pollution continues to be a widespread public health and environmental problem in the United States. Previous studies suggest that global
                        change
            (climate change and variability, UV-radiation, land use change) could have significant impacts on ambient air quality. Global climate change will
            likely result in changes in regional and local weather. While few studies have explicitly investigated the effects of global change on air quality,
            the available evidence (e.g., weather-ozone studies, basic atmospheric chemistry, sensitivity of emissions to weather and land use, etc.) raises
            concerns that global change could adversely affect air quality. Two pollutants likely to be affected by global change are ozone and particulate
            matter and they are also of significant interest to the Agency. By the end of FY 2003, two important components of an integrated air quality
            assessment will be completed: (1) downscaling of global meteorological data to geographic scales appropriate for air quality assessments; and (2)
            quantification of the air implications of advanced fuel/vehicle combinations likely to be used to adapt to climate change.


    Verification and Validation 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-carbon dioxide (COi) emissions, 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,  kilowatt-hours (KWh) reduced.) A carbon-conversion factor is used to convert this
    information to estimated greenhouse gas (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 on

    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.
                                                      VI-44

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Data Quality Review: Peer-reviewed carbon-conversion factors are used to ensure consistency with
generally accepted measures of GHG 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, the Department of Energy
(DOE), the Department of Commerce (DOC), the Department of Transportation (DOT), and the U.S.
Department of Agriculture (USD A). The results were published in the U.S. Climate Action Report-1997
as part of the United States' submission to the Framework Convention on Climate Change (FCCC). A
1997 audit by EPA's Office of the Inspector General concluded that the climate programs examined
"used good management practices" and "effectively estimated the impact their activities had on
reducing risks to health and the environment..."

Data Limitations: These are indirect measures of GHG emissions (carbon conversion factors and
methods to convert material-specific reductions to GHG emissions reductions). Also, the voluntary
nature of the programs may affect reporting. Further research will be necessary in order to fully
understand the links between GHG concentrations and specific environmental impacts, such as impacts
on health, ecosystems,  crops, weather events, and so forth.

New/Improved Data or Systems: The Administration regularly evaluates the  effectiveness of its
climate programs through interagency evaluations.

Performance Measure:  Annual Energy Savings

Performance Database: Climate Protection Division Tracking

Data Source: Voluntary energy efficiency programs collect partner reports on facility specific
improvements (e.g., space upgraded, kWh reduced).

QA/QC Procedures:  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'
submission to the Framework Convention on Climate Change (FCCC). A 1997 audit by EPA's OIG
concluded that the climate programs examined "used good management practices" and "effectively
estimated the impact their activities had on reducing risks to health and the environment..."
                                        VI-45

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Data Limitations: The voluntary nature of programs may affect reporting

New/Improved Data or Systems: The Administration regularly reviews 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 broadening 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
complementary and in no way duplicative.

       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 the  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 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 EPA's Clean
Automotive Technology initiative) undertaken by the U.S. to reduce greenhouse gas emissions,
implementation status of the policies and measures, and their actual and projected benefits. One result
of this interagency review process will be a refinement of future goals for these policies and measures
which will be communicated to the Secretariat of the FCCC in 2001.  The draft report "Climate Action
Report 2001: The United States of America's Third National Communication Under the United Nations
Framework Convention on Climate Change, draft, 2001" will be published in 2002.

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 EPA's Global Change Research program, agencies participating in-the USGCRP include: the
U.S. Departments of Agriculture, Commerce, Energy, Health and Human Services, Interior; the
National Aeronautic and Space Administration; the National Science Foundation; and the Smithsonian


                                       VI-46

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Institution.





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 370la





Research





U.S. Global Change Research Program Act of 1990





United Nations Framework Convention on Climate Change





National Climate Program Act of 1997
                                        VI-47

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                              Environmental Protection Agency

              FY 2003 Annual Performance Plan and Congressional Justification

                  Reduction of Global and Cross-border Environmental Risks

Objective: 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) overexposure, particularly among susceptible subpopulations such as
children.

                                    Resource Summary
                                   (Dollars in Thousands)

Reduce Stratospheric Ozone Depletion.
Environmental Program & Management
Total Workyears
FY2001
Actuals
$18,989.4
$18,989,4
34.8
FY 2002
Enacted
$15,843.2
$15,843.2
30.1
FY 2003 FY 2003 Req.
Request v. FY 2002 Ena.
$15,813.3
$15,813.3
29.7
($29,9)
($29.9)
-0.4
                                       Key Program
                                   (Dollars in Thousands)

Administrative Services
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
Multilateral Fund
Stratospheric Ozone Protection
FY2001
Enacted
$16.1
$0.0
$99.3
$379.1
$10,975.8
$5,771.9
FY 2002
Enacted
$0.0
$489.3
$76.5
$98.9
$9,575.8
$5,602.7
FY 2003 FY 2003 Req.
Request v. FY 2002 Ena.
$0.0
$419.8
$82.1
$93.4
$9,575.8
$5,642.2
$0.0
($69.5)
$5.6
($5.5)
$0.0
$39.5
                                        VI-48

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                                                       U.S. Significant Goals in
                                              Controlling Ozone-Depleting Substances
FY 2003 Request

       The stratospheric ozone layer protects life on earth from harmful UV radiation; a depleted
ozone layer allows more UV radiation to reach the earth. The increased levels of UV radiation due
to ozone depletion can lead to a greater chance of overexposure to UV radiation and consequent
health effects including skin cancer, cataracts, and other illnesses.1  Today, one in five Americans
develops skin cancer. Cataracts diminish the eyesight of millions of Americans and cost billions of
dollars in medical care each year. 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  §   40
Amendments of  1990 (the Act),   EPA
estimates that, in the United States alone,
the  worldwide  phase-out  of   ozone
depleting substances (ODSs) will save 6.3
million lives from   fatal cases of skin
cancer, and avoid 299 million cases of
non-fatal skin cancer and 27.5 million
cases  of cataracts  between  1990 and
2165.2
                                            50
                                        •5
                                        S-
                                        _o
                                                       D ere.
                                                                           1 HCFO
       Scientific evidence amassed over
the  past  25   years  has  shown  that
chlorofluorocarbons (CFCs), halons, hydrochlorofluorocarbons (HCFCs), methyl bromide, and other
halogenated chemicals used around the world are destroying the stratospheric ozone layer.  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 ODSs.

       The United States and 1 78 other countries are Parties to the Montreal Protocol as of July 3 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.
        World Meteorological Organization, Scientific Assessment of Ozone Depletion: 1998. February 1999.

        Advisory Council on Clean Air Act Compliance Analysis, Science Advisory Board, The Benefits and
Costs of the Glean Air Act 1990-2010. EPA report to Congress: 1999.
                                          VI-49

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       Because of the very long lifetimes of ODSs, even after program goals are met, the United
States 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-21 st 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  SunWise School  Program.
Approximately 80 percent of lifetime exposure to UV rays is obtained prior to age 18.

Program Goals and Objectives for FY 2003 and Beyond

•      Domestic and international phase-out of production and importation of numerous  ODSs:

              •   Implementation of a 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 phase-out of HCFCs, leading to full phase-out in 2030, in compliance
                 with the Montreal Protocol.
              »   Implementation of a 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 an 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.

              •   Expand the SunWise School Program, with the  goal of reducing the risk to
                 children and their caregivers  of health effects caused by  overexposure to UV
                 radiation. Through implementation of this national UV education program
                 targeted to grades K-8, EPA expects to reach children in 17,000 schools by 2005.

              "   Environmental data development and public outreach aimed at informing the
                 public of risks of overexposure to UV radiation.
                                         VI-50

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             •   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 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 ODSs. To date, the Fund has supported over 3,500
activities in over 124 countries that, when fully implemented, will annually prevent emissions of
more than 150,000 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 virtually all of
developing country  halon production capacity.  Final closure of related facilities depends  on
continued funding.

       Pollution prevention also  is an important element in meeting the objective goals.  For
example, the 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 environmentman other alternatives for the same application.
EPA, 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, EPA will continue its intensive efforts to curb illegal imports of
ODSs.

       Additionally, in FY 2003, EPA will continue to expand the SunWise School Program. The
overarching goal of the SunWise  Program is to create a comprehensive approach to mitigate the
negative impacts associated with depletion of the Earth's protective ozone layer. EPA's SunWise
School Program will achieve this goal through the direct education of children and caregivers in how
to protect themselves and others from overexposure to UV radiation.

Program Accomplishments
    "  In FY 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
       collaborated  with the U.S. Department of Agriculture  (USDA) and industry to test and
       register alternatives to methyl bromide in FY 2000 and FY 2001.

    "  Between FY 1995 and FY 2000, EPA, along with the Customs Service and Department of
       Justice, intercepted over 2,500,000 pounds of illegal ODS imports, resulting in more than
       110 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 undercutting
       the U.S. domestic market in reclaimed ODSs.
                                         VI-51'

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During FY 1999 through FY 2001, EPA completed several major projects to prevent an
increase in ozone-depleting emissions. For example, EPA:

Conducted a comprehensive evaluation, in collaboration with the National Aeronautics and
Space Administration (NASA), the academic community, and industry, of potential health
impacts of ozone 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.

Banned the distribution and import into  the U.S. of refrigerators containing CFCs.  The
amendment to the existing product ban ensures environmental protection from releases of
CFCs and also avoids undermining U.S. refrigerator manufacturers, all of whom have moved
to alternatives.

During FY 2000 and FY 2001, EPA listed 31 of the new possible alternatives to ODSs as
acceptable for use in refrigeration and air-conditioning, solvent cleaning, aerosols, insulating
foams, fire protection, adhesives,  coatings  and inks, bringing the combined total of
acceptable substitutes to approximately 400. EPA also restricted the use of several proposed
substitutes to prevent unacceptable risks to the environment and consumer and worker health
and safety.

EPA also ensured the continued availability of CFCs used for metered-dose inhalers relied
upon by 14 million patients with asthma and other chronic respiratory diseases.

EPA's FY 2001 contribution to the Multilateral Fund helped the Fund support cost-effective
projects designed to build capacity and eliminate ODS production and consumption in over
75 developing countries.

During the 2000-2001  school year, the  Sun Wise program grew from 140 participating
schools in 36 states to 587 participating schools in 50 states, Puerto Rico, and the District of
Columbia.
                                   VI-52

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Annual Performance Goals and Measures


Restrict Domestic Consumption of Class II HGFCs

In 2003   Restrict domestic consumption of class II HCFCs below 9,960 ODP-weighted metric tonnes (OOP MTs) and restrict domestic exempted
            production and import of newly produced class I CFCs and halons below 10,000 OOP MTs.

In 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 halons below 60,000 ODP MTs.

In 2001   The 2001 results will be available after March 15,2002.

Performance Measures:                                   FY2001          FY2002           FV2003
                                                    Actual           Enacted           Request
Domestic Consumption of Class II HCFCs                       On track           < 15,240           <9,960      ODP MTs

Domestic Exempted Production and Import of Newly                On track           <60,000          <10,000      ODP MTs
Produced Class I CFC s and Halons
Baseline: The base of comparison for assessing progress on the 2003 annual performance goal is the .domestic consumption cap of class II HCFCs as set by
            the Parties to the Montreal Protocol. Each Ozone Depleting Substance (ODS) is weighted based on the damage it does to the stratospheric
            ozone - this is its ozone-depletion potential (ODP). Beginning on January 1,1996, the cap was set at the sum of 2.8 percent of the domestic
            ODP-weighted consumption of CFCs in 1989 plus the ODP-weighted level of HCFCs in 1989. Consumption equals production plus import
            minus export.
Montreal Protocol Fund

In 2003   Provide assistance to at least 60 developing countries to facilitate emissions reductions and toward achieving the requirements of the Montreal
            Protocol.

In 2002   Provide assistance to at least 60 developing countries to facilitate emissions reductions and toward achieving the requirements of the Montreal
            Protocol.

In 2001   The US provided assistance to 76 developing countries to facilitate emissions reductions toward achieving the requirements of the Montreal
            Protocol.

Performance Measures:                                   FY 2001          FY2002          FY2003
                                                    Actual           Enacted           Request
Assistance to Countries Working under Montreal Protocol                 76      .       60     '     •  •   60     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.

Validation and Verification of Performance Measures


Performance Measure: Reductions in production and importation of Ozone Depleting Substances
(ODSs).


Performance Database: Reported production, imports, exports, transformations, and allowance trades of
ODSs are  recorded in the Stratospheric Ozone Tracking System, and analyzed quarterly.


Data  Source: Data are provided by producers, importers and exporters of ODSs. Some data are submitted
as quarterly reports.


Q A/QC Procedures: The Stratospheric Protection Program has a system in place to verify data from private
external sources against data from the U.S. Customs.  Additionally, the program has a three-point check of


                                                  VI-53

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data transcription from the reports into the tracking system.

Data Limitations: None

New/Improved Data or  Systems: The Stratospheric Protection Program is continuing to explore an
improved system whereby electronic reporting would be possible and an automatic crosswalk could be
designed to automatically copy hydrochlorofluorocarbons (HCFC) data to the separate HCFC threshold
monitoring database.

Coordination with Other Agencies

       In an effort to curb the illegal importation of ODSs, an interagency task force was formed consisting
of representatives from EPA, the 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 United States from meeting the goals of the Montreal Protocol to restore the
ozone layer.

       EPA is working with the USDA to facilitate research and development of alternatives to MBr, and to
identify and monitor emergency and critical uses of MBr.  EPA consults with the USDA in developing
rulemakings for exempting certain MBr from production and importation phase-out. EPA also consults with
the Food and Drug Administration (FDA) on the potential for MBr 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 the 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 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 the FDA to ensure that sufficient supplies of CFCs are available for
the production of life-saving metered-dose inhalers for the treatment of asthma and other lung diseases. This
partnership between EPA and FDA blends the critical goals of protecting the public health and limiting
damage to the stratospheric ozone layer.

       In addition to collecting its own UV data, EPA coordinates with NASA and the National Oceanic
and Atmospheric Administration to monitor the state of the ozone layer.

       EPA 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.

       EPA coordinates with the Small Business Administration to ensure that proposed rules are developed
in accordance with the Small Business Regulatory Flexibility Act.
                                         VI-54

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Statutory Authorities




Clean Air Act (C.AA), Title V (42 U.S.C. 7661-7661 f), and Title VI (42 U.S.C. 7671-7671q)




The Montreal Protocol on Substances that Deplete the Ozone Layer
                                        VI-55

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                             Environmental Protection Agency

              FY 2003 Annual Performance Plan and Congressional Justification

                  Reduction of Global and Cross-border Environmental Risks

Objective: 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
Total Workyears
FY2001
Actuals
$4,772.6
$4,772.6
31.0
FY 2002
Enacted
$6,060.9
$6,060.9
32.8
FY 2003
Request
$6,173.6
$6,173.6
35.6
FY 2003 Req.
v. FY 2002 Ena.
$112.7
$.112.7
2.8
                                       Key Program
                                   (Dollars in Thousands)

Administrative Services
Facilities Infrastructure and Operations
Global Toxics
Global Trade.Issues for Pesticides and Chemicals
Great Lakes
Legal Services
Management Services and Stewardship
POPs Implementation
FY2001
Enacted
$16.1
$0.0
$1,571.6
$2,703.7
$0.0
$313.8
$0.0
$0.0
FY 2002
Enacted
$0.0
$495.4
$1,522.8
$3,091.2
$537.6
$382.4
$31.5
$0.0
FY 2003 FY 2003 Req.
Request v. FY 2002 Ena.
$0.0
$515.9
$1,415.1
$3,125.4
$0.0
$410,7
$26.2
$680.3
$0,0
$20.5
.($107.7)
$34.2
($537.6)
. $28,3
($5.3)
$680.3
                                       VI-56

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FY 2003 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 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). PBTs break down very slowly in the environment.
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 ecosystems world-wide. PBTs also enter the food chain accumulating in shellfish,
fish, birds and other 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 2003, EPA will continue
to play a key role in the Administration's efforts to implement a number of regional and global instruments
with both 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
                                          VI-57

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       Recognizing that environmental loadings of
PBTs and the resultant health and environmental
risks will increase overtime because of expanded       UndeT the. Giobai rops
                                      r             chemicals are initially largelvd for elimination
production, trade, and use of these substances, in
recent years international attention has focused on
two groups of PBT substances: persistent organic              .,.,,,,
polhitants (POPs) such as PCBs, dioxins and DDT,
   ,..,,          ,      *  4 vi                     2.Aldrin        S.TaxapLsaw
and selected heavy metals, most notably mercury.
                                                        3. (Held™       ". I'OBa
                                           The Arctic Cord Blood Program
                                           An  initial  study  indicates  high  levels  of POPs
                                           contamination in newborns of native Alaskan's. Study
                                           will now be expanded to improve statistics and include a
                                           wider geographical area.
       In December of 2000, the U.S. and 120             4. End™
other nations concluded negotiations on a legally             5. aitaiaue       a.Furaus
binding global  convention on POPs  under  the
auspices of the  United Nations  Environment
Program (UNEP).  The signing ceremony for the
Stockholm   Convention    occurred    in
Stockholm, Sweden in May 2001, whereby
the U.S. and 90 other countries and the
European Union signed the treaty. Ninety-
two countries must ratify the agreement for it
to go into effect, but countries have already
started to eliminate or decrease the use of the
12 chemicals identified. The Untied States is
making  legislative changes  to  both the
Federal   Insecticide,   Fungicide,   and
Rodenticide Act and the Toxic Substances
Control Act in order to fulfill its commitment under the new POPs agreement. EPA's goal is to have the
Untied States ratify the agreement by September 2002.

       The Stockholm Convention bans or restricts manufacture, use,  and/or release of  12  selected
chemicals. The  agreement also  addresses export and import restrictions/controls, emission release
restrictions, by-product 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 release inventories and
implementation of capacity building measures in developing countries around the world.

       OIA in coordination with other EPA program and regional offices has developed an international
POPs Implementation Plan. The goals of the plan are to (1) Reduction in amount of POPs reaching the U.S.
by long range transport, (2) Reduction in the number of sources of POPs in countries of origin, focusing on:
PCB-containing equipment , obsolete POPs stockpiles, and Dioxins and furans emissions from combustion
sources, and (3)Enabling better inter- and intra-country coordination on POPs implementation activities by
improving access to POPs technical, regulatory and program information on the Internet.

       In FY 2003 EPA will expand its work to assist developing countries in meeting their obligations
under this agreement. Because these chemicals circulate around the globe they can cause health problems
anywhere including the United States. EPA will focus on those countries thought to be key sources of the
substances most likely  to impact the U.S., such as Russia, Central America and the Caribbean. The
problem is especially acute in Alaska and the Great Lakes where POPs are taken up in the food chain and


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impact Native Americans who depend on subsistence foods for their livelihood.

       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 2003, EPA will provide technical expertise and data to the global mercury assessment. 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 2003 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

       Projects aimed at protection of the Arctic Ecosystem will  continue to focus on preventing and
reducing environmental contamination from spent nuclear fuel, PCBs, and dioxins in NW Russia. In fiscal
year 2003, the Russia PCB proj ect will move into the third phase of selecting a PCB destruction technology
and demonstrating this technology.  The results of the Russia PCB inventory (phase l)-completed in 2000
found PCB inventories of 31,500 tons with the majority of the PCBs found in equipment (27,000 tons) still
in circulation.

       A 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 2002, 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 is engaged with UNEP in an Internet Access Project to train officials of developing countries
gain access to information  necessary for the sound management of chemicals.

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.
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       Harmonizing test guidelines across countries offers significant benefits to industry, the public, and
the environment, including:

       1.     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;

       2.     reducing the need for animal testing;

       3.     expanding the universe of toxic chemicals for which needed testing information is available;
             and

       4.     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 2003, the Agency will continue its  involvement in the process for
harmonization of additional test  guidelines with the Organization 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 (PRTRs)

       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.
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       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.

International Screening Information Data Set (SIPS)

       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 75-100 SIDS chemicals in
2003.

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 the 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, We are also engaged in trilateral work with Canada and Mexico in
the framework of the working group on the Sound Management of Chemicals (SMOC).
FY 2003 Change from FY 2002 Enacted

EPM
    •  (+$400,000, +2.0 FTE) Additional funding will address priorities and provide technical
       assistance in key countries and regions, especially those whose POPs releases most directly
       affect the U.S.; and support international cooperative efforts, such as monitoring and assessment,
       to identify trends and establish priorities,

    •  (+$538,400)  Resources, dollars  and FTE, associated with rent are allocated in proportion to
       Agency-wide FTE located in each goal, objective. Resources, dollars and FTE, associated with
       utilities, security and human resource operations are allocated in proportion to Headquarters FTE
       located  in each goal,  objective.  Changes reflect shifts in FTE between goals and objectives.
       Resources, dollars and FTE, associated with contracts and grants are allocated in proportion to
       Headquarters'  contracts and grants resources located in each goal, objective.  Changes in these
       activities reflect shifts in resources between goals and objectives.  (Total changes - rent:  -
       $3,569,400, utilities: +$3,468,000, Security: -$9,103,900. Nominal increases/decreases occurred
       in human resource operations, grants and contracts related activities.)
Annual Performance Goals and Measures

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Eval. Doniest. Suitab. of Internal Consens. Testing

In 2003    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 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    The shortfall in the number of chemicals in this relatively young, voluntary program is due to a lack of committments from Industry, as well as
               debate within member countries on which chemicals should be brought forward.

Performance Measures:                                        FY2001            FY2002            FY2003
                                                              Actual             Enacted            Request
Complete the review of testing needs for chemicals processed                 40                 75                  75      Test Reviews
through the OECD- sponsored SIDS program

Complete OECD harmonization                                             4                   5                          Test Guidelin

Prepare harmonization documents                                                                                  5      DftTFnl Guidlns



Baseline:  (1 )Complete testing and data on 25 chemicals processed through the OECD sponsored SIDS program in 1998. (2) Guideline harmonization
               baseline is 82 test guidelines (health, ecosystem, exposure, physical and chemicals properties) and 32 in draft.  (3)ln addition to finalized
               guidelines: (a) Drafts of New Guidelines and Guidance documents sent out for member country review, (b) Drafts of revised Existing
               Guidelines and Guidance  documents that have been sent out for member country review are included.

POPs Negotiation

In 2003    Reduce environmental exposure to US and selected Countries of concern from Persistent Organic Pollutants (POPs) through the implementation
               of the Stockholm Convention on POPs.

In 2002    Initiate priority activities, especially in developing Countries, to implement the global convention on persistent organic pollutants (POPs)

In 2001    Three priority activities were initiated in developing countries to implement the newly concluded global convention on Persistent Organic
               Pollutants.

Performance Measures:                                        FY200I            FY2002            FY2003
                                                              Actual              Enacted            Request
Number of POPs implementation activities supported.                          3                   3                          activities

Develop baseline information on atmospheric transport of                                                             1      station
POP chemicals to sensitive US ecosystems.

Conduct source inventories in selected Asia-Pacific                                                                   4      inventories
countries

50% of farmer-owned obsolete POP pesticide stockpiles are                                                           5      training
removed as a result of training, in priority countries and or
regions in Central America.

 Assist countries in the Canibean to address targeted PCS                                                             1      Mgmt. Plan
sources.
Baseline:  With the signing of the global POPs convention in May 2001 EPA will work on domestic implementing legislation (e.g., a F1FRA 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 2003   An additional two countries  make national commitments to phase out the use of lead in gasoline.

In 2002   An additional two countries  make national commitments to phase out the use of lead in gasoline.

In 2001   Target Met. Philippines and Vietnam have committed to lead phase-out. Also, EPA was an active player in achieving the "Declaration  of Dakar,"


                                                            VI-62

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           which is a statement by representatives of 25 Sub-Saharan African countries presenting a timeline for phasing lead additives out of gasoline.
Performance Measures:                             FY2001         FY2002        FY2003
                                             Actual         Enacted        Request
Number of commitments to Pbphaseout                           222     countries
Global reduction in Pb gasoline.                                10             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.


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 4 will over time provide environmental information. Non-technical projects, such as assistance
in gaining support from donor countries and organizations must rely on more subjective measures of change.
 Data verification and validation for each of the key measures under Objective 4 are discussed below.

FY 2003 Congressional Performance Measure: Develop baseline information on atmospheric transport
of POP chemicals to sensitive US  ecosystems.

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 tasks completed.

FY 2003 Congressional Performance Measure: Assist a target  country in the Carribean to address
targeted PCB sources.

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 tasks completed.
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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 Drug Administration (FDA), FDA's National Toxicology Program, the
Centers for Disease Control/Agency for Toxic Substances and Disease Registry (CDC/ATSDR), the
National Institute of Environmental Health Sciences (NIEHS) and/or the Consumer Product  Safety
Commission (CPSC) on matters relating to OECD test guideline harmonization.

       EPA's objective is to promote 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 (IFCS), the North American Commission on Environmental Cooperation (NACEC), the Organization
for Economic Cooperation and Development (OECD), and the CODEX Alimentarius Commission.  The
North American Free Trade Agreement and cooperation with Canada and Mexico play an integral part in the
harmonization of data requirements.

       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 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 Program (PBTP), which amis
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 PBTP, 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 objectives of the Initiative. This work has
closely paralleled many efforts  already underway to conclude and promote the  implementation of


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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.

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, Drag 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 2003 Annual Performance Plan and Congressional Justification

                  Reduction of Global and Cross-border Environmental Risks

Objective: 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)

Increase Domestic and International Use of
Cleaner and More Cost-Effective Technologies.
Environmental Program & Management
Total Workyears
FY2001
Actuals
$10,914.5
$10,914.5
53.9
FY 2002
Enacted
$12,520.9
$12,5.20.9
54.0
FY 2003 FY 2003 Req.
Request v, FY 2002 Ena.
$12,601.0
$12,601.0
54.7
$80.1
$80.1
0.7
                                        Key Program
                                    (Dollars in Thousands)

Administrative Services
Commission for Environmental Cooperation - CEC
Environment and Trade
Facilities Infrastructure and Operations
Global Toxics
International Safe Drinking Water
Legal Services
Management Services and Stewardship
Regional and Global Environmental Policy
Development
FY 2001
Enacted
$16.1
$3,269.0
$1,700.0
$0.0
$7.7
$384.4
$581.4
$25.4
$1,784.8
FY 2002
Enacted
$0.0
• $3,396.4
$1,672.6
$815.6
$0.0
$0.0
$675.7
$51.0
$1,431.2
FY 2003 FY 2003 Req.
Request v. FY 2002 Ena.
$0.0
$3,535.3
$1,844.3
$792.7
$0.0
$0.0
$725.6
$41.7
$1,331.3
$0.0
$138.9
$171.7
($22.9)
$0.0
$0.0
$49.9
($9.3)
($99.9)
Technical Cooperation with Industrial and
Developing Countries
$3,400.2
$4,478.4
$4,330.1
($148.3)
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FY 2003 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 2003 include:

Trade and Environment

       EPA's 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 time, the United States,
Mexico, and Canada placed priority attention on environmental issues caused by trade liberalization as part
of trade negotiations. 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, some agreements (e.g., NAFTA)  include
investment provisions that limit the types of measures governments may apply to foreign investors,
including measures to address health and environmental issues. Regulatory agencies must ensure that  the
implementation of domestic statutes does not violate U.S. trade obligations.

       To better understand the linkages between trade rules and environmental protection,  the United
States has developed a procedure to assess reasonably foreseeable impacts of trade agreements both on the
environment (both positive and negative), and on our ability to protect the environment through regulations.
 Coordinated by the Office of United States  Trade Representative and the President's Council  on
Environmental Quality, U.S. Federal agencies conduct environmental reviews of major trade agreements.
EPA and other Federal agencies are required to provide the human and financial resources necessary to
perform such reviews. The environmental review of trade agreements includes an ongoing, iterative process
in which EPA staff participate in developing US negotiating positions and in negotiating sessions to make
sure that trade agreement proposals and environmental policies are mutually supportive, and not in conflict.

       During FY 2001 and FY 2002, EPA was involved in conducting environmental reviews of proposed
trade agreements with Jordan, Chile, Singapore, and the Free Trade Area of the Americas.   That effort
included developing numerical models to better predict the potential environmental effects of  the
agreements. During 2003, the number and pace of trade and investment agreement negotiations is expected
to increase.  EPA will continue to refine the models, and work with other U.S. Government agencies to
perform additional reviews, including a review of the Agreement on Agriculture and the General Agreement
on Trade in Services of the World Trade Organization.

       Finally, in all of its trade agreements, the United  States has been a proponent of making the trade
dispute resolution process more open and transparent to the public.  EPA has worked to articulate and
promote this policy. Greater openness will improve public understanding of the dispute process which in


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turn can help improve decision making and help assure that trade and environmental policies are not in
conflict, but are mutually supportive.

International Safe Drinking Water

       The international safe drinking water initiative will continue its focus on applying cleaner and more
cost-effective environmental practices and technologies in order to improve drinking water quality in partner
countries. Ongoing projects in Central  America or 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.

       In Latin American, 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
implemented several drinking water projects in Africa during FY 2002, with projects focused on nations in
the southern and eastern parts of the continent. If sufficient funding is available for international drinking
water programs during FY'03, EPA may expand on the work begun in Africa. 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 Practices and Environmental Information

       EPA will continue its international urban environmental programs, which help U.S. cities and EPA's
environmental programs to promote:

       - sustainable social, economic,  and environmental re-use of brownfields;
       - environmentally-sensitive transportation systems which reduce greenhouse gas emissions
              and land consumption;
       - "green" buildings which reduce greenhouse 'gas emissions, improve stormwater runoff,
              and reduce solid waste;
       - sustainable urban watershed management; and
       - integrated urban solid waste management systems:

The Agency supports this work through  the exchange of urban and environmental policies, technologies and
practitioners between U.S. and OECD-member urban regions, frequently at the sub-national  level.

       Continuing projects begun in FY 2002, EPA will support a comparative research study of urban
watershed management in the Potomac River Basin using best practices from non-point runoff, storm water,
land-use  and urban development projects in Germany as the basis for the work. The project will highlight
how urban regions in the Potomac Basin can improve surface water quality and simultaneously reduce water
maintenance costs.  EPA will also undertake a comparative risk-based  decision-making effort between
brownfields practitioners in Canada and the U.K. This effort will articulate the  unique and  common
elements of risk-based approaches to  site assessment, site restoration, and  landscape design in these


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countries and how these approaches could apply to the U.S. Finally, EPA will support the collection of
international best practices "green" buildings in OECD-member countries and the dissemination of these
practices to U.S. communities.

       In addition to its international urban management activities, EPA will continue to work directly with
other countries and through multilateral organizations to disseminate environmental information, However,
because of reduced funds and FTEs, EPA will not initiate new international programs on the collection,
analysis, or transfer of environmental data in FY 2003, Support for programs initiated in FY 2002, such as
assisting Asian cities to improve collection and analysis of data on air pollution, will continue in 2003 as
originally planned.

Legal and Regulatory Capacity Building

       In FY.2003, EPA will continue legal and regulatory capacity-building activities in Asia and Central
America.  In Asia,  EPA will continue to  work in cooperation  with  U.S.  AID 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
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 to increase public participation
in the promulgation of environmental regulations. Public participation can encourage 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 an on-going cooperative effort with USAID, the Agency will also work  to improve the
regulatory framework in Central America.  EPA will assist Central American countries in developing
regionally-comparable  environmental standards,  improving their application and enforcement  of
environmental regulations, and increasing their  ability  to  comply with  international  environmental
agreements. Work under this regional program will focus largely on pesticide management, wastewater
management systems, and municipal waste management. FY 2003 will mark the second year in this 6-year
effort.

       Work under Objective 5, Achieve Cleaner and More Cost-Effective Practices, provides developing
countries with the tools and training necessary to achieve long-term  environmental change. These
programs complement technical assistance which EPA and other organizations provide by ensuring that the
recipient country or region is able to sustain and replicate environmental improvements. These programs
also help protect human health and the environment in the U.S. by introducing innovative practices for
environmental management, reducing costs  and encouraging information flow through data sharing,
increasing the demand for U.S. environmental technologies and services, and helping to implement more
transparent enforcement and permitting regimes.

       Work in FY 2003 will focus on developing the frameworks necessary to perpetuate cleaner and more
cost-effective practices. EPA will assist industrializing countries to improve legal and regulatory regimes
(especially at the regional level) and to improve drinking water management systems. EPA will also work
with other OECD-member countries to transfer to the U.S. their best practices for urban environmental
management, thereby assisting municipal governments to explore cleaner, less expensive models of site


                                         VI-69

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reuse, transportation planning, and the like,

FY 2003 Change from FY 2002

EPM
            •   (-$100,000, 2.0  FTE)   redirection of resources to  give  greater  emphasis  to POPs
                implementation (Goal 6 Objective 4).  The redirection will reduce the depth of analyses of
                some trade agreements in order to support priorities.  In addition, to support the growing
                demand for additional coordination OLA will shift two FTEs within this objective to Trade
                and Environment program activities.

            •   ($789,600) Resources, dollars and FTE, associated with rent are allocated in proportion to
                Agency-wide FTE located in each goal, objective.  Resources, dollars and FTE, associated
                with  utilities, security and human resource operations are  allocated  in proportion to
                Headquarters FTE located in each goal, objective. Changes reflect shifts in FTE between
                goals and objectives. Resources, dollars and FTE, associated with contracts and grants are
                allocated in proportion to Headquarters' contracts and grants resources located in each goal,
                objective.    Changes in these  activities reflect shifts in  resources  between goals and
                objectives.  (Total  changes  -  rent:  -$3,569,400, utilities:  +$3,468,000,  Security:  -
                $9,103,900. Nominal increases/decreases occurred in human resource operations, grants
                and contracts related activities.)

Annual Performance Goals and Measures

Enhance Institutional Capabilities
In 2003   Enhance environmental management and institutional capabilities in priority countries.
In 2002   Enhance environmental management and institutional capabilities in priority countries,
In 2001   Target Met EPA conducted environmental institutional building and enhanced the abilities of the following countries to protect their
            environments and those of the gloabal common: El Salvador, Nicaragua, Honduras, Mexico, China, Thailand, Eygpt, Indonesia, Vietnam, &
            Philippines.
Performance Measures:                                FY 2001         FY2002          FY2003
                                                  Actual           Enacted          Request
Number of countries or localities (3) that have adopted new                 3                                     countries
or strengthened environmental laws and policies
Number of organizations (3) that have increased                        3                                     organizations
environmental planning, analysis, and enforcement
capabilities
Number of organizations (3) that have increased capabilities                3                                     organizations
to generate and analyze environmental data and other
information
Number of organizations (3) that have increased public                    4                                     organizations
outreach and participation
Number of targeted sectors (3) that have adopted cleaner                  2                                     industry sector
production practices
Number of cities (3) that have reduced mobile-source based                 3                                     cities
ambient air pollution concentrations
Assist in the development or implementation of improved                                2               1     countries
environmental laws or regulations in priority countries.
                                                VI-70

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Performance Measures:                               FY2001         FY 2002         FY2003
                                               Actual          Enacted         Request
Increase the transfer of environmental best practices among                              3              3     countries
the U.S. and its partner countries and build the capacity of
developing countries to collect, analyze, or disseminate
environmental data.

Increase the capacity of programs in Africa or Latin America                                            1     countries
to address safe drinking water quality issues.



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.

World Trade Organization - Regulatory System

In 2003  All trade agreements negotiated after 2001 contain environmental provisions.

Performance Measures:                               FY2001         FY2002         FY2003
                                               Actual          Enacted         Request
Trade agreements and world trade organization provisions                                              1     Agreements
contain environmental text
Baseline: Currently, the World Trade Organization has no formal policy for involving the public in its decision making and dispute resolution processes.

    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, such as assistance  in regulatory  reform,  frequently must rely on more
    subjective  measures of change, such as the opinions of  project staff or reviews by  third-party
    organizations, including other U.S. government organizations, 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.

    FY 2003 Congressional Performance Measure: Assist in the development or implementation
    of improved  environmental laws or regulations in developing countries.

    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: (1) tasks completed, (2) compliance with new regulation, and (3) progress
    toward project goals and objectives.

           EPA works with developing countries to improve environmental  laws and regulations.
           Tracking development and implementation of legislation presents few challenges because
           EPA project staff maintain close contact with their counterparts and any changes become
           part'of a public record,  Assessing the quality of the new or revised laws/regulations, the
                                             VI-71

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       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 and
       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. Under
       its cooperative programs with  US AID in Central America, EPA is developing a set of
       indicators to measure progress for each activity undertaken.  These indicators should be in
       place in FY 2002.

FY 2003 Congressional Performance Measure: 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: (1) tasks completed, (2) compliance with new regulation, and (3) progress
toward project goals and objectives.  Data on the performance of specific urban projects are
compiled and recorded by the grantee after consulting bi-monthly with local, regional, and national
urban environmental practitioners.  The data are forwarded to and verified in writing 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.
FY 2003 Congressional Performance Measure: Increase the capacity of programs in Latin
America or Africa to address safe drinking water quality issues.

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: (1) tasks completed, (2) compliance with new regulation, and (3) progress
toward project 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

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information is also shared with donors, specifically US AID, 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 interest 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
participation on the Environmental Trade Working Group of the Trade Promotion  Coordinating
Committee, an interagency working group chaired by the Secretary of Commerce to coordinate the
government's overall environmental trade promotion activities.

       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. trade 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 and in the Committees
created by both sets of agreement,"EPA has worked with USTR to ensure that U.S. obligations under
international trade agreements  do not  hamper the ability of  Federal and state governments to
maintain high levels of domestic environmental protection. The two agencies also work together to
ensure that 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 Drag Administration.

Statutory Authorities
                                        VI-73

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EPCRA section 313 (42 U.S.C. 11023)




PPA (42 U.S.C. 13101-13109)




World Trade Organization Agreements




North American Free Trade Agreement




North American Agreement on Environmental Cooperation




US-Canada Agreements




The Boundary Waters Treaty of 1909




1987 Great Lakes Water Quality Agreement




1997 Canada-U.S. Great Lakes Binational Toxics Strategy
                                      VI-74

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Goal 7: Environmental Information

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Environmental Protection Agency
2003 Annual Performance Plan and Congressional Justification
Table of Contents
Goal?: Quality Environmental Information	,	,	VII-1
        Increase Availability of Quality Health and Environmental Information	 VI1-9
        Provide Access to Tools for Using Environmental Information..	VII-20
        Improve Agency Information Infrastructure and Security	,	VII-31

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                               Environmental Protection Agency

                 FY 2003 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)

Quality Environmental Information
Increase Availability of Quality Health '
and Environmental Information.
Provide Access to Tools for Using
Environmental Information.
Improve Agency Information
Infrastructure and Security.
Total Workyears
FY2001
Actuals
$180,067.6
$80,122,2
$83,127.7
$16,817.7
674.0
FY2002
Enacted
$199,2493
$121,920.2
$53,515.0
$23,814.1
846.1
FY2003
Request
$199,124.0
$120,414.7
$48,181.3
$30,528.0
847.1
FY20Q3Req<
v. FY 2002 Ena.
($125.3^
($1,505.5)
($5,333,7)
$6,713.9
1.0
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 are our data and information, the better able we will
be to make decisions.  This  goal recognizes the importance of working with the public, our
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.

       The importance of  sound  and  reliable  information  technology  was  demonstrated
following the events of September 11, 2001  and has crystallized the need to continually assess
and secure our infrastructure  to meet emerging security threats as well as emergency response
needs.

Providing the American public and environmental decision makers at all levels of government
with  access  to sound  environmental  information and  involving  the public  in  our  work are
essential parts of a comprehensive approach to protecting the environment.

       This goal is premised on the concept that the U.S. public has a right to know about the
pollutants  in their  environment, including land, air and water pollution, as  well as potential
health effects of the chemicals  used  in  the  food they consume.   This premise is especially
important  .to  minority,  low-income, and  Native  American  communities  that  suffer  a
disproportionate share of health effects from poor environmental conditions.
                                           VII-1

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       Access to environmental information enables the American public and our governmental
partners to  make informed decisions about their environment.  It also leads to creative and
sustainable  solutions to  environmental  problems, as well  as  opportunities  for  preventing
pollution.  The Agency believes that the U.S. public has the right to information to improve
public policy and environmental decision-making.

Means and Strategy

        The  purpose of this goal is to provide- government decision makers and the American
public with  information about the environment. Environmental information can better enable 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 eight activities to
accomplish  this goal.

        First, EPA  will  continue  to increase  the availability of health and  environmental
information  by providing citizens  with  access to accurate  and reliable  environmental
information.  For  instance, with  the final expansion of Window  To  My Environment  -  a
geographic  portal to community-based environmental information - EPA is moving forward on
its mandate to provide the public with electronic and non-electronic access to accurate, useful,
and reliable environmental data. This data source will include information collected by EPA, our
partners, and stakeholders.

        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. EPA, through its
public and congressional liaison functions, Federal Advisory Committee Act (FACA) functions,
media relations, print and web content review and oversight responsibilities, will implement
strategies designed to continually 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.

        Second, EPA will continue to develop the Exchange Network (formally known as the
.National Environmental  Information Exchange  Network),   The  Exchange  Network is  a
comprehensive,  integrated  information exchange system designed  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 approach
to receiving  and  distributing information,  and improved  access to  timely and  reliable
environmental  information.   The  Exchange Network 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, EPA will develop and implement program policies  and  guidance in several areas
including web content, website management, and privacy.
                                          VII-2

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       Fourth, 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 to improve the consistency, quality,
and comparability of data managed in  national environmental systems. EPA will  ensure that
data quality is known and appropriate for intended uses.  Usability testing and  customer
satisfaction baselines will  assure that the information the Agency provides is meeting the needs
of its stakeholders.  In addition, the Agency is committed to developing analytical and other tools
to help users interpret and apply environmental data.

       Fifth,  EPA  will  provide  the  means for  using  and  understanding  environmental
information.   Environmental  data are  most meaningful  when  examined  from  a holistic
perspective, that is, when users are  able to examine all of the data about a particular location or
source at once.  Users must also have the underlying documentation that describes the limitations
of the data and the context in which it is most useful.

       Sixth, EPA will streamline information collection,  making it more efficient  and cost-
effective.  The Agency will examine the information reporting burdens we have placed on our
partners and on the regulated community and ensure that information collections address specific
needs.

       Seventh, EPA will improve the timeliness and completeness  of requests for information,
by implementing an Agency-wide electronic records and document management system.  The
Agency plans  to develop  and acquire the necessary software and hardware to begin phased
implementation of the system throughout the Agency.

       Finally,  strengthening  and  securing its information infrastructure is  fundamental to
increasing the  availability, usability, and reliability of environmental information. EPA must
remain vigilant  in  maintaining  a  strong  and secure information infrastructure  that directly
supports the mission of the Agency and homeland security.

       By focusing on these areas, EPA will keep pace with the rapid advances in information
technology and meet the growing, demand for reliable, quality environmental information.

Research

       Research efforts supporting this goal  include 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 to access consistent, reliable toxicity information needed for
credible risk assessments.  In FY 2003,  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 RAF promotes  Agency-wide  consensus on difficult
and controversial risk assessment issues and ensures  that  this consensus is incorporated into
appropriate Agency risk assessment guidance.

Strategic Objectives and FY 2003 Annual Performance Goals
                                          VII-3

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Increase Availability of Quality Health and Environmental Information

•      Decision makers have access to the environmental data that EPA collects and manages to
       make sound environmental decisions while minimizing the reporting burden on data
       providers.

•      The public will have better information on toxic releases and wastes being managed in
       their communities. EPA will also work with the owners and operators of facilities to
       reduce the record-keeping and reporting burdens associated with submitting their TRI
       forms to EPA by  14%.

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.

•      The public will have access to a wide range of Federal, state, and local information about
       local environmental conditions and features in an area of their choice.

Improve Agency Information Infrastructure and Security

•      OMB reports that all EPA information systems meet/exceed established standards for
       security.

Highlights

       Recent changes in information technology, combined with a dramatic  increase in public
demand for information, have fundamentally altered 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 decision-makers and
citizens with simultaneous access to  multiple  data sets  and information products thereby
allowing users to  understand local,  state, Regional, and  national environmental conditions.
These improvements support better-informed environmental decision-making and management
based on environmental results.

       These improvements will enable citizens to get answers to the questions they have about
what EPA is doing to protect the environment and the health of their communities. Stakeholders
will have "one-stop" access to the regulatory and policy implementation guidance that they need
to improve the performance  of their facilities and  sectors.  The environmental justice (EJ)
community will have improved and increased access to the data and information they need to
hold facilities' and local government managers environmentally accountable.  Facility operators
will  be able to submit their data to states, Regions and Federal systems simultaneously via the
Internet without having to fill out paper forms, an  improvement which will help EPA to meet the
                                         VII-4

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national Paperwork Reduction Act and the Government Paperwork Elimination Act burden
reduction goals.

       The Agency  will  actively participate  in  several of  the  Administration's electronic
government (e-gov) initiatives, building on efforts started in 2002. E-Gov is a major component
of the President's Management Agenda and will spur government-wide service improvements
and efficiencies.  EPA's work will include online rule-making (e-dockets), electronic dockets
management, and participation in the human resources and financial management improvement
projects.

       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, 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 to protect their families
and their communities. 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 2003, the program will continue to assist community-based organizations through
the community small grants program.

       Key to achieving  our objectives will  be the further  development of the Exchange
Network.  The Network 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, flexible, and secure.  The Exchange Network will provide a
wide range of shared  environmental information to the states,  Tribes, localities, regulated
community, EPA, and the public. Additionally, through the information grant program, begun in
2002, states and Tribes will be better positioned to participate in the Exchange Network.

       The Central Data Exchange (CDX) is the electronic portal through which information is
securely received, translated and  forwarded data to EPA's  data systems.  In 2003, the CDX
infrastructure, a  key  component of the  Exchange Network, will service 35 state and a total of
25,000  facilities, companies and laboratories will use it to provide data to EPA electronically.
By widely implementing an electronic reporting infrastructure, CDX will reduce reliance on less
efficient paper-based processes, resulting in improved data quality, reduced reporting burden and
the creation of new  opportunities for simplifying  the reporting process.  By the end of 2003,
electronic reporting through CDX will be possible for all  of the national environmental systems.

       In  2003,  data standards will be expanded to include additional areas of environmental
information.  Access to related information  for use by EPA's partners and stakeholders will be
greatly enhanced by improvements to the Environmental  Data Registries.  This system of
registries will continue to provide the technical detail needed to promote the adoption of data
standards by  other parties, and will also  provide authoritative sources for populating records,
thereby promoting data sharing and integration.
                                          VII-5

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       Users of EPA's website have a tool for notifying the Agency of potential errors they find
in the national environmental  data systems. The error correction program is the first step in an
internal process by which the Agency or a state will  assess all reported potential errors, and
notify the individual who reported the error of the findings and corrective actions.  This program
will continue to operate in 2003 and will serve as the basis  for the data  and  information quality
"complaint resolution process" called for in the Office of Management and Budget's recently*
published quality guidelines.

       Citizens and the regulated community will have greater online access to information
contained in EPA's rule-making dockets.  The Regulatory Public Access  System will be the
internet complement to EPA's combined docket facility, and will be first available in mid-2002
and more fully populated in  2003.  This effort is part of the Administration's  e-government
initiative.

       In partnership with the states, the Agency will continue its efforts  to expand publicly
available information, both electronically  via the internet  and through non-electronic media.
This includes  the  Envirofacts database,  a major data warehouse  comprised of 11  national
databases. It is used extensively by EPA, the states and  the public.

       In 2003, the  Agency  will continue its efforts to promote  public  access through the
Agency's Access to Interpretative Documents project (formally known as Enhanced Public
Access). This project is designed to make all significant Agency guidance, policy statements,
and  site-specific interpretations  of regulated entities' environmental  management  practices
electronically available to the states, industry, and the public  in a secure manner.

       EPA will continue to implement the Toxics Release Inventory (TRI) Program. The TRI
Program provides the public with information on waste management and releases of  chemicals
to the environment. 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 from 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 2003, EPA will continue to reduce TRI reporting burdens on industry and improve
TRI  data quality by distributing its new software tool, "TRI Made-Easy (TRI-ME)." EPA
expects to further increase the percentage of TRI  reporting forms that  are  submitted in digital
format.  EPA will continue to refine and expand the public's understanding of TRI data  by
improving data access tools such as the  "TRI Explorer."  In 2003, EPA  will release data for the
first  reporting year since the Agency lowered the TRI reporting thresholds for  lead and lead
compounds in 2001.  EPA will also be issuing a rule to transition from using the old industry
classification system, the Standard Industrial Code (SIC) system,  to the new classification
system, the North American Industry Classification System  (NAICs) for TRI reporting.  As part
of its on-going responsibilities under the  Emergency Planning and Community Right-to-Know
Act (EPCRA), EPA will continue to respond to petitions to add and delete chemicals on the TRI
list and to other petitions to amend the program.
                                          VII-6

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       In 2003, the Agency will continue to modernize its information systems in cooperation
 with the states.  Modernization efforts will focus on data integration and data quality.  These
 projects  will be planned and  managed under the Clinger-Cohen Act investment review with
 oversight by EPA management.

       EPA's information technology program will maintain its commitment to strong customer
 service and strategic investment in new technology to ensure our continued  ability to deliver
 information services efficiently, effectively, and securely.   Through emphasis on acquiring the
 right skills, technologies, and  services, EPA will take additional  steps to strengthen and secure
 the Agency's information technology infrastructure.  In 2003, EPA will implement a program to
 ensure that all of its central infrastructure, financial and mission critical environmental systems
 are assessed for potential security risks as part of regular system security plan updating.

       EPA's  quality  program  will  continue  to  develop  the  Agency-wide policies  and
 procedures for planning, documenting, implementing,' and assessing data collection and use in
 Agency  decisions.  The quality  program  will also  develop training material on the  various
 policies and oversee implementation of EPA's quality systems.

 Research

       In FY 2003, the Agency will continue to provide technical guidance for conducting risk
 assessments to improve the scientific basis for decision making.  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.
 EPA 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  and/or update Agency
 consensus human health assessments for 8-10 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.  Working in partnership with state and Tribal governments
 is an essential element of our information programs. 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. In order to achieve an integrated 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  maintained effectively, and  protected
 appropriately.

       To  be efficient  and  cost-effective,  EPA's  information  systems   and technologic
 infrastructure must be flexible enough to respond to changes and take advantage of innovations
                                          VIJ-7

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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 in keeping with the Agency's statutory requirements.  Local citizen organizations and
the public  at large are also increasingly  involved in environmental decision making, and  their
need for information and more sophisticated analytical tools is growing.
                                          VH-8

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                                   Environmental Protection Agency
                    FY 2003 Annual Performance Plan and Congressional Justification

                                  Quality Environmental Information

Objective: 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)

Increase Availability of Quality Health and
Environmental Information.
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
• $80,122.2
$75,761.5
$647.6
$3,713,1
$0.0
462.1
FY 2002
Enacted
$121,920.2
$94,690.7
$2,229.5
$0.0
$25.000.0
478.2
FY 2003
Request
$120,414.7
$93,749.7
$1,665.0
$0.0.
$25,000.0
492.1
FY 2003 Req.
v. FY 2002 Ena.
($1^05.5)
($941.0)
($564.5)
$0.0
$0.0
13.9
                                            Key Program
                                         (Dollars in Thousands)

Administrative Services
Community Assistance
Congressional Projects
Congressional/Legislative Analysis
Congressionally Mandated Projects
Correspondence Coordination
Data Collection
Data Management
Data Standards
Direct Public Information and Assistance
Environmental Education Division
Executive Support
Facilities Infrastructure and Operations
GLOBE
Geospatial
Homeland Security
Information Exchange Network
Information Integration
FY 2001
Enacted
$307.6
$3,618.0
$1,979.2
$4.357.6
$2,011.4
$2,658.6
$3,614.0
$2,463.7
$3,753.8
$10,431.0
$9,003.4
$83.6
$6.903.7
$997.8
$0.0
$0.0
$0.0
$3.719.8
FY 2002
Enacted
$0.0
$650.2
$2,078.6
$4,852.2
$1.100.0
$1,200.7
$0.0
$2,400.7
$500.0
$8,612.7
$9,160.2
$0.0
$7.002.0
$0.0
$154.8
$600.8
$25,000.0
$4.675.8
FY 2003
Request
$0.0
$921.8
$1,991.3
$4,857.8
$0.0
$1,096.3
$0.0
$2,630.1
$2,785.4
$8,998.4
$0.0
$83.6
$7,031.5
$0.0
$464.0
$473.3
$25.000.0
$9,728.5
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$271.6
($87.3)
$5.6
($1,100.0)
($104.4)
$0.0
$229.4
$2,285.4
$385.7
($9,160.2)
$83.6
$29.5
$0.0
$309.2
($127.5)
$0.0
• $5,052.7
                                                VII-9

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Information Technology Management
Intergovernmental Relations - QA
Legal Services
Management Services and Stewardship
Multi Media Communications
NACEPT Support
NAFTA Implementation
National Association Liaison
Pesticide Registration
Pesticide Reregistration
Public Access
Regional Management
Regional Operations and Liaison
Regulatory Development
Reinventing Environmental Information (REI)
SBREFA
Small, Minority, Women-Owned Business
Assistance
System Modernization
Toxic Release Inventory / Right-to-Know (RtK)
Web Products Quality Control
FY2001
Enacted
$3,525.3
$1,263.4
$1,730.3
$365.3
$0.0
$1,560.6
$403.3
$235.5
$196.2
$194.9
$2,724.5
$1,630.6
$428.3
$4,629.5
$0.0
$571.9
$2,048.2
$7.168.6
$14,105.6
$0.0
FY 2002
Enacted
$3,872.9
$1,519.8
$1,979.1
$1,410.8
$821.3
$1,803.1
$514.3
$346.0
$570.6
$392.2
$4,857.5
$1,262.2
$547.5
$5,000.5
$5,066.8
$686.2
$2,295.5
$6,827.7
$13,278.0
$879.5
FY 2003
Request
$3,000.0
$1,835.4
$2,082.7
$1.314.9
$870.3
$1,670.1
$747.9
$262.5
$221.4
$198.1
$5,165.2
$1,267.8
$477.6
$4,817.4
$4,279.1
$608.8
$3,305.0
$7,254.6
$14,206.9
$767.0
FY 2003 Req.
v. FY 2002 Ena.
($872.9)
$315.6
$103.6
($95.9)
$49.0
($133.0)
$233.6
($83.5)
($349.2)
($194.1)
$307.7
.$5.6
($69.9)
($183.1)
($787.7)
($77.4)
$1,009.5
$426.9
$928.9
($112.5)
 FY 2003 Request

       EPA will continue to manage and support its website - EPA.Gov- to ensure public access
.to a broad range of resources, applications, maps, tools and databases.  The EPA.Gov website
 has grown exponentially in the last five years, with web site hits rising from monthly averages of
 9.7 -million in 1997 to 122 -million in of October 2001. The Agency will continue to expand the
 capabilities of the Enviro facts 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 actively participate in several of the Administration's electronic government (e-
 gov) initiatives, building  on efforts started in 2002.  E-Gov is  a major component of the
 President's Management Agenda and will  spur government-wide  service  improvements and
 efficiencies.   EPA's work will include online rule-making (e-dockets),  electronic  dockets
 management, and participation in the human resources and financial management improvement
 projects,

       Key to achieving  improved information quality  will be further development of the
 Exchange Network. The Network is a comprehensive, 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.  The Exchange Network will fundamentally  change the way the  Agency and the
                                         VII-10

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states do business and will improve data accuracy, reduce burden, and improve the utility of
environmental information for decision making at all levels.

       In 2003, EPA will continue its environmental information grant program to promote state
and Tribal participation in the Exchange Network. This grant program builds on work underway
in several states and assists states and Tribes in evaluating their readiness to participate in the
Exchange Network, enhances their efforts to complete necessary changes to their information
management systems to facilitate Exchange Network participation and supports state information
integration efforts. In 2003, the Agency will increase the number of EPA systems receiving data
electronically via the network, accelerate the development and use of common data exchange
formats and data standards,  refine the Agency's technical architecture, begin to  implement a
system of access, develop environmental indicators, and  enhance efforts to  integrate and use
geospatial information.

       In  2003, the  CDX  will be firmly  established  as  EPA's enterprise-wide electronic
reporting gateway to the Agency's information network.  The CDX will have the capability to
accept and  translate different  data  transmission  formats  used by  states, facilities,  and
laboratories. The CDX  will be  a  model  of e-government  by providing  the capability to
electronically sign and file reports from the regulated community.

       As mandated by Section 313 of EPCRA and Section  6607 of the PPA, EPA  annually
collects 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.
In 2003, EPA will continue to  reduce TRI reporting burdens on industry and improve TRI data
quality by distributing its new software tool,  TRL-ME.   EPA  also expects to  increase the
percentage of TRI reporting forms that are  submitted in  digital format (electronically and via
floppy disc).

       EPA will continue to refine and  expand the public's understanding of the TRI data by
improving data access tools such as the ATRJ Explorer.@  In 2003, EPA will release data for the
first reporting year since the Agency  lowered the TRI reporting thresholds  for lead  and lead
compounds in 2001.  EPA will also be issuing a rule to transition from using the old industry
classification system, the SIC system, to the new classification  system, the NAICs, for TRI
reporting.   As part of its on-going responsibilities under the EPCRA, EPA will continue to
respond to petitions to add and delete chemicals on the TRI list, and to other petitions to amend
the program.

       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 Food Quality Protection Act (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 citizens have
accessible, comprehensive and useful information about their effects and uses.
                                         VII-11

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       The Agency will 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 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.

       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  2003, 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 minimum burden on the public. The Agency will continue to expand
outreach to small entities such as small  businesses,  governments and non-profits, and will
establish  formal mechanisms and  build partnerships to advocate  small entity involvement in
Agency rulemakings.  EPA  will complete Regulatory  Flexibility analyses for all 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  these
communities.

     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.

     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
                                         VII-12

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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
communications 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 Office of the Executive Secretariat (OEX) logs, assigns, and tracks correspondence
received by the Administrator and Deputy Administrator to help ensure that citizens' comments,
questions, ideas and concerns are directed to the appropriate program and/or regional offices for
informed response, for inclusion  in official public comment files,  and/or for other  necessary
action. OEX also assists in the quality control of executive responses.

    The Agency's Office of Small and Disadvantaged Business Utilization (OSDBU) 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.I02-389, the
Agency  has a national goal of 8% utilization of minority and women-owned businesses in the
total value of Agency procurement 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 Office of Communications, Education,  and Media Relations (OCEMR) will use
diverse media resources to  aid.public understanding of science in order  to increase public
awareness and enhance  public perception of environmental issues and their technological and
scientific solutions. The Office will inform the  public about environmental problems and goals,
and   strengthen  communications  by   integrating   the  policy-regulatory  decisions   and
communications messages.   OCEMR, and its Regional counterparts, will  provide a leadership
role in managing the EPA homepage, web site,  and web product review for all EPA offices,
programs and Regions.   It will  also  edit EPA's web content and work with the  Office of
Environmental Information to put this information on the  EPA website, manage EPA's Press
Release Database and the Administrator's Speech Database, and design  the Newsroom Web
page for the  Office of Media Relations.   OCEMR will work  with the Administrator  to keep
Agency staff and the public  informed about major policy decisions, initiatives, events and key
personnel appointments.  The Office will also  be responsible for the electronic distribution of
mass mail information for the Administrator and her designees.
                                         VII-13

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       The Agency plans to accelerate efforts by the compliance and enforcement program to
promote public access during  2003.  The 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 compliance and enforcement 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.

FY 2003 Change from FY 2002  Enacted

EPM

•   (+$3,365,200) Provides support for the Agency to build the Information Exchange Network
    infrastructure needed to meet the needs of the states and our other data partners.

•   (-$6,735,900)  This decrease reflects the transfer of the Environmental Education program
    to the National Science Foundation's math and science programs.

•   (-$2,424,800)  This decrease reflects the transfer of the Environmental Education program's
    workyears in Headquarters and the Regions to the Office of Children's Health Protection, the
    Office of Cooperative Environmental Management, the Office of Congressional and
    Intergovernmental Relations and regional work in support of the Agency's small and
    disadvantaged business utilization commitments.

•   (+$1,009,500) This increase reflects increased support for the Agency's goals.

EPM

•   (+$2,000,000) Provides EPA funding for E-Government activities in support of the
    President's Management.

S&T

•   (-$1,300,000)  The FY 2003 request is $4,875,000 below the FY 2002 Enacted budget level
    due to  Congressional earmarks received during the FY 2002 appropriations process which
    are not included in the FY 2003 President's Request
                                         VII-14

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EPM
•   (+$7,634,800) Provides support for the Agency to build the Information Exchange Network
    infrastructure needed to meet the needs of the states and our other data partners.
•   (-1,028,400) The Emergency Supplemental Appropriation for Homeland Security efforts was
    not requested in FY 2003
Superfund
•   (+$3,000,000)  Provides support for the Agency to build the Information Exchange Network
    infrastructure needed to meet the needs of the states and our other data partners.
•   (-900,000) The Emergency Supplemental Appropriation for Homeland Security efforts was
    not requested in FY 2003
Annual Performance Goals and Measures
Process and Disseminate TRI Information - OEI
In 2003       The public will have better information on toxic releases and wastes being managed in their communities. EPA will also work
             with the owners and operators of facilities to reduce the record-keeping and reporting burdens associated with submitting their
             TRI forms to EPA by 14%.
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.
In 2001       120,000 chemical submissions and revisions processed; published annual summary of TRIS database in April 2001; and TRI
             •Public Data Release published in April 2001.
Performance Measures:
Total electronic reporting of all chemical submissions
processed. (Includes diskette submissions created by ATRS,
TRI-ME, and other .reporting software programs, as well as
web-based submissions.)
TRI Public Data Release
Chemical submissions and revisions processed.
TRIS database complete and report issued
Data quality.:'keep data entry error rate below 1%.per form
Increase magnetic media use for TRI reporting
The number of forms containing Toxic Release Inventory
data being reported electronically on  computer diskettes will •
increase from 85% to 90%.
                                        FY2001
                                         Actual
                                            Published
                                             120,000
                                            Published
FY 2002
Enacted
                                                                  85
FY2003
Request
                                                                                   90
                                 Percent
                                 Published
                                 Forms
                                 Published
                                 Error Rate
                                 Magnetic Media
                                 Percent
Baseline:
1 n FY 2001, TRI electronic reporting will be 70%.  .
Enhanced Public Access
In 2003       Improve public access to compliance and enforcement documents and data through multimedia data integration projects and
             other studies, analyses and communication/outreach activities.
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       EPA improved public assess to compliance but in areas covered by the performance measures EPA did not meet targets.
Performance Measures:  •                                 FY2001          FY2002          FY2003
                                                    VII-15

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                                               Actual          Enacted          Request
By the end of FY 2001, all ten EPA Regions will have an                 9                                   Websites
enforcement and compliance web-site
Make 90% of enforcement and compliance policies and                 86    "         90             90     Percent
guidances issued this FY available on the Internet within 30
days of issuance
By April 2001, make summaries of all significant cases                 50                                   Percent
available on the Internet
Baseline:     OECA enhances public access to compliance and enforcement documents through our efforts to make available through the
           internet newly issued enforcement and compliance documents.

Information Exchange Network
In 2003      Decision makers have access to the environmental data that EPA collects and manages to make sound environmental decisions
           while minimizing the reporting burden on data providers.
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:                               FY2001         FY 2002         FY2003
                                                Actual          Enacted         Request
States using the Central Data Exchange to send data to EPA.                             15                    States
The number of states using the Central Data Exchange will                                             45     States
increase to 45 as the means by which they submit data.
Implement four data standards in 13 major systems and                                                4     Data Standards
develop four additional standards in 2003.

Baseline:     The FY 2001 baseline for this program is zero as it is a new program.

Verification and Validation of Performance Measures

Performance  Measure:  The  number of  states using the Central  Data Exchange will
increase to 45  as the means by which they submit data.
Performance Database: CDX Customer Registration Subsystem.
Data Source: Data are provided by state CDX users.
QA/QC Procedures:  QA/QC is-performed in accordance with a CDX Quality Assurance Plan.
Specifically, data are reviewed for authenticity and integrity. Automated edit checking routines
are performed in accordance with program specifications and a CDX quality assurance guidance.
Data Quality Review: CDX successfully completed independent security risk assessment in the
Summer 2001.   In  addition^ routine audits  of CDX data collection procedures and customer
service operations are provided weekly to CDX management and staff for  review.  Included in
these reports are performance  measures  such as the number  of CDX new users, number of
submissions  to  CDX,  number of help desk  calls,  number of calls resolved,  ranking  of
errors/problems,  and actions  taken.  These reports are reviewed and actions discussed at weekly
project meetings.
Data Limitations: The  CDX system collects, reports, and tracks performance measures on data
quality and customer service.  While its  automated routines are  sufficient to screen  systemic
problems/issues,   a  more  detailed  assessment  of data  errors/problems  generally   requires
secondary level of analysis that takes time and human resources.
                                              VII-16

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New/Improved Data or Systems: CDX* coalesces the registration/submission requirements of
many different state-to-EPA data exchanges into a single web-based system. The system allows
for a more consistent and comprehensive management and performance tracking of many state
customers. The creation of a centralized registration system, coupled with the use of web forms
and web-based approaches to submitting the data, invite opportunities to  introduce automated
quality assurance procedures for the system and reduce human error.

Performance Measure: The number of forms containing Toxic Release  Inventory data
being reported electronically on computer diskettes will increase from 85% to 90%.
Performance Database: Toxics Release Inventory (TRI) System
Data  Source: EPA tracks on  a weekly basis the production statistics for TRI data.   These
statistics  report how TRI data are transmitted to EPA by facilities: on paper; through the Central
Data Exchange or by diskette.
QA/QC Procedures: The determination of how data are received  is automated through system
modules in TRIS.
Data Quality Review: EPA reviews the production statistics on a weekly basis.
Data Limitations: N/A
New/Improved Data or Systems: N/A

Performance Measure: Implement  four  data standards in 13 major systems and develop
four additional standards in 2003.
Performance Database: N/A
Data  Source: Data  on implementation is provided by system and program managers to Data
Standards Branch (DSB) staff in the Office of Environmental Information (OEI) and recorded in
a Data Standards  Implementation Matrix.  The  development  of new data standards is  a
cooperative process with state and Tribal partners.
QA/QC Procedures:  Once drafted, new data standards are made available for public review
and comment through notices in the  Federal Register, on EPA's Environmental Data Registry
(www.epa.gov/edr).  and on the Environmental  Data  Standards Council (EDSC) website
(www.epa.gov/edsc). DSB staff use periodic conformity reviews to confirm compliance with
final Agency standards in individual systems.  In addition, staff provide outreach and training to
system and program managers to help implement the data standards.
Data  Quality Review: During  the Capital  Planning  and Improvement Control process,
information included in the Data Standards Implementation Matrix is reviewed annually. Once
developed, the EDSC annually reviews data standards, for usefulness and applicability to EPA,
state, and Tribal business needs.

Data  Limitations: Due to  resource limitations, DSB staff cannot perform detailed conformity
analyses on every system. In addition, conformity reviews do not necessarily indicate how data
are transferred from systems. Finally, conformity reviews suggest conformance options but do
not guarantee their implementation in the systems.
New/Improved Data or  Systems:  Data  Standards improve  the consistency,  quality,  and
comparability of data managed in EPA systems. Developing new standards and  ensuring the
implementation of those in place allows for enhanced data integration and exchange.
                                        VII-17

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Coordination with Other Agencies

       EPA works on environmental information with its state partners under the State/EPA
Information Management Workgroup and the Environmental Data Standards  Council.  The
State/EPA workgroup has created seven action teams to jointly develop key information projects.
Action teams consist of EPA,  state, and  Tribal members.  They  are structured to result in
consensus solutions to  information management issues which affect states, Tribes, and EPA,
such as the development and use of environmental data standards, and implementation of new
technologies for collecting and reporting information.

       EPA also participates in multiple workgroups with other federal agencies including the
U.S. Geological Survey (USGS),  Federal Geographic Data Committee (FGDC),  and Chief
Information Officer Council. The Agency is actively involved with a variety of agencies in
developing government-wide e-government reforms, and continues to participate with the Office
of Homeland Security and national security agencies on homeland security. These multi-agency
workgroups are designed to ensure consistent implementation of standards and  technologies
across Federal agencies in order to support efficient data sharing.

       The TRI program coordinates with other Federal agencies, particularly those that are
required to report to TRI pursuant to Executive Order 13148 (Greening the Government through
Leadership  in Environmental  Management),  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,  TRI is one of the leading systems
of its type in the world. As such, EPA participates in a number of international consortia on
TRI-type  systems,  TRI, along  with its Canadian equivalent  comprise the North American
Pollutant Release and Transfer Register.  In these arenas, EPA coordinates with  the Department
of State and other Federal agencies.  Finally, the TRI program has  substantial interaction with
state agencies. States use TRI data for a number of purposes;  such as in geographic information
systems.

EPA will work with the  Small Business Administration, as appropriate, on regulations that affect
small businesses. In developing health assessments  for the  IRIS database,  EPA  interacts
frequently with other Federal agencies involved in health assessments and research. In the initial
drafting,  documents such  as  AToxicological  Profiles® produced  by Health  and  Human
Services/Agency for Toxic  Substances and Disease  Registry (HHS/ATSDR) are routinely
consulted  for information.   EPA also consults and utilizes assessments and research findings
from the Food and Drug Administration, the National Toxicology Program, the National Institute
of Environmental Health Sciences  and the National Library of Medicine. Federal agencies are
also consulted  for peer review of draft  IRIS  assessments.   Finally,  the IRIS website has
electronic links to other agencies' websites for the education and convenience of the IRIS user.
                                         VII-18

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 Statutory Authorities

 National Environmental Education Act
 Federal Managers Financial Integrity Act
 Government Performance and Results Act
 Clinger-Cohen Act
 Computer Security Act
 Privacy Act
 Clean Air Act (42 U.S.C. 7601-767 Iq) and amendments
 Clean Water Act (33 U.S.C. 1251 -1387) and amendments
 Comprehensive  Environmental  Response, Compensation,  and  Liability  Act  (42  U.S.C.
 9601-9675)
 Emergency Planning and Community Right-to-Know Act section 313 (42 U.S.C. 110001-11050)
 Government Paperwork Elimination Act
 Federal Insecticide, Fungicide and Rodenticide Act (7 U.S. C. 136-136y)
 Pollution Prevention Act (42 U.S.C. 13101-13109)
 Resource Conservation and Recovery Act (42 U.S.C. 6901-6992k)
 Safe Drinking Water Act 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 13148, AGreening the Government through  Leadership in Environmental
• Management@
 Enterprise for the Americas Initiative Act (7 U.S.C. 5404)
 Environmental Research, Development, and Demonstration Act (ERDDA) of 1981
 Federal Advisory Committee Act (FACA) (5 U.S.C. App.)
 Federal Food, Drug and Cosmetic Act (FFDCA)
 Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) (7 U.S. C- 136-.136y)
 Executive  Order 12915  - Federal  Implementation of the  North American Agreement  on
 Environmental Cooperation
 Superfund Authorization Reauthorization Act (SARA)
                                        VII-19

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                                  Environmental Protection Agency

                   FY 2003 Annual Performance Plan and Congressional Justification

                                  Quality Environmental information

Objective: 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)

Provide Access to Tools for Using
Environmental Information.
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
Total Workyears
FY 2001
Actuals
$83,127.7
$63,688.0
$3,123.9
$16,315.8
210.8
FY2002
Enacted
$53,515.0
$39,786.3
:$3,002.0
$10,726.7
183.5
FY 2003
Request
$48,181.3
$34,707.9
$4,105.9
$9,367.5
169.7
FY 2003 Req.
v. FY 2002 Ena.
($5,333.7)
($5,078.4)
$1,103.9
($1,359.2)
-13.8
                                            Key Program
                                        " (Dollars in Thousands)

Administrative Services
Capacity Building
Communicating Research Information
Congressionally Mandated Projects
Data Collection
Data Standards
EMPACT
Environmental Justice
Facilities Infrastructure and Operations
Geo spatial
Homeland Security
Information Integration
Information Technology Management
Legal Services
Management Services and Stewardship
Public Access
Regional Management
Reinventing Environmental Information (REI)
System Modernization
Toxic Release Inventory / Right-to-Know
(RtK)
FY 2001
Enacted
$169.4
$0.0
$5,955.6
$0.0
$1,888.5
$3,092.5
$10.607.5
$4,986.9
$2,950.7
$522.3
$0.0
$1,940.8
$12,803.1
$751.9
$1,421.5
$6,666.4
$740.6
$0.0
$5,891.4
$0.0
FY 2002
Enacted
$0.0
$0.0
$5,543.7
$6,175.0
$125.9
$4,839,9
$0.0
$5,064.4
$2,865.7
$860.5
$260.1
$1,440.3
$7,206.7
$812.2
$918.8
$7.252.6
$715.7
$2.290.9
$6,265.0
$877.6
FY 2003
Request
$0.0
$162.8
$5,569.6
$0.0
$125.9
$3,695.2
$0.0
$4,978.8
$2,345.8
$279.4
$0.0
$0.0
$9,362.1
$925.0
$799.9
$9,983.5
$754.3
$2.277.3
$5,835.4
$1.086.3
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$162.8
$25.9
($6,175.0)
$0.0
($1.144.7)
$0.0
($85.6)
($519.9)
($581.1)
($260.1)
($1,440.3)
$2,155.4
$112.8
($118.9)
$2,730.9
$38.6
($13.6)
($429.6)
$208.7
                                               VII-20

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FY 2003 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 United States Geographical Survey  (USGS) and the Federal Geographic  Data Committee
(FGDC)  to implement a national spatial data infrastructure, which will enhance communities
ability to pinpoint the environmental information most relevant to their locale.

       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 dialogue with its partners and stakeholders to make sure their
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.   The analytical environment will provide capabilities for  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 more holistic view and  understanding of the environment, encouraging  informed
decision-making.  EPA will undertake a best practices series of documents specifying the proper
steps for creating information usable for decision making.  Insights gained from environmental
analysis  will  support a  fuller understanding of  environmental outcomes, and  remaining
challenges.  Environmental analysis will support better regulatory decision-making and greater
knowledge about the environment.

       EPA's quality program  will continue to  develop  the  Agency-wide policies  and
procedures for planning, documenting, implementing, and  assessing data collection and  use in
Agency decisions.   The quality program will also  develop training material on the policies and
oversee Implementation of EPA organizations' Quality Systems.

       The Agency will continue the development of  its Environmental Indicators  Initiative
(EII) in order to establish a set of performance indicators that measure  environmental results.
Environmental indicators are an important tool  for simplifying,  analyzing, and communicating
information about  environmental conditions  and human  health.   EPA  is in the process of
compiling an Agency-wide indicator inventory that will  be used to produce  a state-of -the
environment report in the short term and, in the long term, will be utilized to  identify gaps and
set priorities  for the EII. These indicators will measure the impact of human activities on the
environment and the associated health effects on communities and ecosystems.
                                         VII-21

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       In 2003,  EPA  will  continue  to modernize its  programmatic  and  administrative
information systems. Modernizing information systems will drive 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 data sets and
improving the accuracy of locational data. The Agency will also redesign its capital planning
and investment control process to assure more efficient use of Agency information technology
resources  and improved accounting  of information technology expenditures through  project
control and monitoring.  This process will also be more closely integrated with the Agency's
enterprise architecture, integration initiative, and budget process.  These projects will be planned
and  managed under  the Clinger-Cohen  Act investment  review,  with  oversight  by  EPA
management.

       EPA's environmental justice program will  continue education,  outreach, and data
availability initiatives.   The Program  provides  a central point for the  Agency to  address
environmental and human  health  concerns in  minority  communities  and/or low-income
communities— a  segment of the population which has been disproportionately exposed to
environmental harms  and  risks.   The  program will  continue to  manage  the  Agency's
Environmental Justice  Community  Small  Grants program which  assists  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  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. In sum, these  small grants have served as the
seed-money for empowerment of the residents of these communities which have allowed them to
speak for themselves and to make their own decisions.

       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
cognizant 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 Agenda which is centered around fifteen demonstration projects in
diverse  urban and rural communities in  virtually all regions of the nation.  The agenda is
designed 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.
                                         Vll-22

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       The Agency supports and encourages user-friendly environmental justice programs of
state and Tribal governments and conducts outreach and technical assistance to states, local
governments, and all stakeholders on environmental justice issues.  In order to be able to respond
to an allegation of environmental injustice, it is essential to identify the affected community. In
2001,  the  Environmental  Justice Mapper  was  developed  for  the  Internet to provide all
stakeholders with information about a selected location.  The Environmental Justice Mapper
reflects environmental data available from the Agency's data warehouse and demographic data
provided by the U.S. Census Bureau. Links  are provided to the health-related database of the
Department of Health and Human Services.  Another essential tool to foster the integration of
environmental justice into Federal programs, policies and activities is training.

       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 assessment  methods, models, and  information,
ecological  toxicity  information, and improvements  in  monitoring,  measurement,  and  data
management  technologies  to protect human  health  and  the environment.    Providing all
Americans with access to sound environmental information  and involving the public in EPA's
work are essential parts of a comprehensive approach to protecting the environment. Access to
environmental information enables scientists, risk assessors, government officials, and the public
to be involved and to make informed environmental decisions.

       An  important  part  of EPA's effort to  provide readily accessible information is the
Integrated  Risk Information System (IRIS), an  EPA database of Agency. consensus health
information on environmental contaminants.  The  database is used extensively by EPA Program
Offices and Regions,  the  states,  and the general public  where  consistent, reliable  toxicity
information is needed for credible risk assessments.  Other work in this area includes that of the
Agency's Risk Assessment Forum (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 assessment guidance.   Additional
environmental  information  is made  available  through the  Evaluation  and Interpretation of
Suitable  Tests Results in AQUIRE1 (EVISTRA), a database which provides  EPA's Program
Offices and Regions with ecological toxicity information.

Integrated Risk Information System (IRIS)
       .AQUIRE (Aquatic Toxicity Information Retrieval) is a database containing scientific papers published both nationally and
internationally on the toxic effects of chemicals on aquatic organisms and plants.

                                          VII-23

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       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.
As more risk-based decision-making takes place at the state and local levels, it is essential to
provide access to current and  credible health effects  information, critical  for sound  risk
assessments.   To ensure  the  quality, accuracy, credibility, and applicability of IRIS data, all
assessments" undergo external  scientific peer review.

       In FY 2003, 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, including explanatory
materials, available at the local level to support community-based environmental protection; and
5) provide active outreach and communication with current and potential new users.

Risk Assessment Forum

       The Agency's Risk Assessment Forum (RAF) will continue to develop a number of
products to assist risk assessors, such as 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 2003,  the  RAF will focus on: cumulative risk
assessment, ecological risk assessment, and risk assessments for children; and will develop
various issue papers, workshop reports, and risk assessment guidance documents.

EVISTRA

       EVISTRA involves the development and maintenance of a high quality  database to
provide ecological  toxicity information to  Regions, states  and the public.   The EVISTRA
database contains ecological toxicity information used to develop water quality criteria for the
protection of aquatic  life, terrestrial plants,  and terrestrial wildlife.  The database will make
available evaluated and interpreted results of selected aquatic toxicity tests.  EVISTRA became
available  on  the  Internet in FY 2001 with  the initial release  of critically evaluated chemical
effects data to support risk assessments and  criteria development for aquatic life and terrestrial
wildlife. In FY 2003,  the Agency will continue to develop and maintain the EVISTRA database.

FY 2003 Change from FY 2002 Enacted

EPM

«      (+$2,243,200, 0 FTE)  Provides funding to make EPA's information more accessible (both
       within and outside of EPA) by acquiring and implementing an Agency-wide electronic
       records and document management  system.  The increase will  support the necessary
       software and hardware to begin phased implementation of the software throughout the
       Agency.

•      (+$784,600, 0 FTE) Represents an internal redistribution of resources to  better reflect
       where the work associated with these  dollars is actually being done,
                                          VII-24

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Research

S&T
EPM
         No significant change
•        (-$4,875,000) The  FY  2003  Request  is $4,875,000 below the FY 2002 Enacted budget
         level due to Congressional earmarks received during the FY 2002 appropriations process
         which are not included  in the FY 2003 President's Request.

Annual Performance Goals and Measures
Environmental Justice

In 2003       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 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       While EPA did meet the measuresabputt he public meetings and responding to requests .during NEJAC meetings, EPA did not
             meet the other targets.
Performance Measures:

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 NationalEnvironmental Justice Advisory
Commitee (NEJAC) meetings and focused roundtables in
local communities where problems have been identified.

Hold one NEJAC public meeting annually where one
environmental policy which impacts disadvantaged
communities is discussed and the communities actively
participate.

Hold meetings with the (NEJAC), all statkeholders involved
in the environmental justice dialogue, and communities
disproportionately impacted by environmental hazards.

Continue to engage the agencies in national issues of
environmental concerns through the collaborative efforts of
the IWG through the publication "Action Agenda for
Environmental Justice".

Award grants to organizations which address environmental
problems in communities disproportionately impacted by
environmental hazards.

Increase the cumulative number of demonstration projects
establihed under the Fed. Interagecy Working Group on Env.
Justice.
FY2001
 Actual
FY 2002
Enacted
         25
         75
          13
FY 2003
Request
                           30
                           90
                            25
                           90
                                   meetings
                                                     percent
                                   meetings
                                                     Meeting
                                   meetings
                                                     Agenda
                                                     grants
                                   Projects
Baseline:       The Agency works to address issues affecting disproportionately exposed and under-represented populations from adverse
              health or environmental effects. EPA identifies problem areas through: public comments received during the National
                                                        VII-25

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Data Quality

In 2003
In 2002
               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; concern from communities
               about new or renewals of permits under RCRA, CWA, CAA, etc.; and complaints filed under Title VJ of the Civil Rights Act.
               EPA also works to. address these issues through the Federal Interagency Working Group on Environmental Justice and by
               awarding grants to communities for addressing environmental problems.
The public will have access to a wide range of Federal, state, and local information about local enviromental conditions and
features in an area of their choice.

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:

Publicly available facility data from EPA's national systems,
accessible ou the EPA Website, will be part of the Integrated
Error Correction Process.

Window-to-My Environment is fully operational and serving
citizens across the country with Federal, state, and local
environmental information specific to an area of their choice.

Percent compliance with 13 criteria used by OMB to assess
Agency security programs reported annually to OMB under
the Government Information Security Regulatory Act.
                                               FY200I
                                                Actual
FY 2002
Enacted
                                                                            100
FY 2003
Request
                                      Percent
                                                                                              Fully       Operational
                                                                                                75       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.
Research

Environmental Science Information

In 2003        Deliver assessments of effects of exposure to chemicals on human health and the environment to EPA, other governmental
               organizations, industry, consultants, academics, and nongovernmental organizations to promote scientifically sound, consistent
               risk assessments to enhance protection of human health.

In 2002       . Improve environmental decision making, risk assessment and risk communication by synthesizing human health assessment
               information on environmental substances.

In 2Q01        EPA collected, managed, and presented 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.
Performance Measures:

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.

Draft human health assessments (new and updated
assessments) of 9 environmental substances  of high priority
to EPA for Agency IRIS consensus review.

Develop Agency consensus for human health assessments
(new/updated) for 8-10 environmental substances of high
priority to EPA, and make these accessible on the EPA IRIS
Internet site.
                                               FY 2001
                                                Actual
FY2002
Enacted
FY 2003
Request
                                                                                                         assessments
                                                                                                         list
                                                                                                         assessments
                                                                                               8-10      assessments
                                                          VII-26

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Baseline:     The Integrated Risk Information System (IRIS.) is an electronic data base containing information on human health effects that
           may result from exposure to various chemicals in the environment for use in risk assessments, decision-making, and regulatory.
           activities. Through the IRIS Program, ORD administers an Agency-wide process of chemical nomination, assessment,
           consensus building, and peer review through which assessments on IRIS are produced and updated. As of December 2000 ,
           IRIS contained entries for 541 compounds. The IRIS program is continuously producing new assessments and updating
           existing IRIS assessments as new information becomes available. The information in IRIS is intended for those without
           extensive training in toxicology, but with some knowledge of health sciences. The individual chemical files in IRIS contain
           descriptive and quantitative information in the following categories: oral reference doses and inhalation reference concentrations
           (RfDs and RfCs, respectively) for chronic noncarcinogenic health effects; hazard identification, oral slope factors, and oral and
           inhalation unit risks for carcinogenic effects.

Verification and Validation of Performance Measures

Performance Measure: Window to My Environment  (WME)  is fully  operational and
serving citizens across the country with Federal, state, and local environmental information
specific to an area of their choice.
Performance database: Envirofacts Data Warehouse and Integrated Geospatial Database (IGD).
Data Source: Data originated from Agency legacy database systems, such as,  RCRIS, AIRS,
and PCS and from Agency and state environmental websites.
QA/QC  procedures:  WME quality assurance procedures occur on several levels.  Each of the
legacy databases feeding into Envirofacts and the  IGD have  their own QA/QC  screens and
procedures to verify the data submitted. As the data are uploaded to Envirofacts and the IGD,, a
series of Envirofacts QA/QC protocols are conducted to assure that the upload is complete and
accurate.   The  WME interface provides a self-checking mechanism that routinely monitors the
stability of its website  links to assure that links to external sites are functional and useful.

Data Quality Review: WME is a part of the Agency's error correction process -  which serves to
facilitate the reporting of data errors and track their correction.
Data Limitations: All of the data  reported through the WME interface originates somewhere
else  - either from an EPA  data source, from other Federal data sources (e.g., U.S. Geological
Survey,  Federal Emergency Management Agency  (FEMA),  and others) or from  state data
sources.  Ultimately, the data and the conclusions derived from the data are only as good as the
underlying data.
New/Improved  Data  or Systems: WME  is  currently being  expanded to 4 EPA Regions
(Regions 3,5,6,8) and is expected to be available nationally by end of 2002.
FY 2003 Congressional Performance Measure (PM):  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

FY 2003 Congressional  Performance Measure (PM):  Continue to engage Federal agencies
in national issues of environmental concerns through  the collaborative  efforts of the
                                          VII-27

-------
Federal Interagency Working  Group  on Environmental Justice  (IWG)  through the
publication AAction Agenda for  Environmental Justice, which  describes  the national
projects where collaboration among the various stakeholders  has been  successful  in
addressing environmental problems.
Performance Database: Output Measure with no internal tracking system.
Data Source: EPA representatives to the Federal Interagency Working Group on Environmental
Justice
QA/QC Procedures: None
Data Quality Review: None
Data Limitations: None
New/Improved Data or Systems: None
 Performance Measure (PM): 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 input data.

QA/QC Procedures: None.

Data Quality Review: None.

Data Limitations: None.

New/Improved Data or Systems: None.

Performance  Measure (PM): Continue to engage Federal agencies in  national issues  of
environmental concerns  through  the  collaborative  efforts  of the  Federal Interagency
Working Group on Environmental Justice (IWG) through the publication AAction Agenda
for Environmental  Justice,  which describes the national  projects where  collaboration
among the various stakeholders has been successful in addressing environmental problems.

Performance Database: Output measure with no internal tracking system.

Data Source: Not applicable.

QA/QC Procedures: Not applicable.

Data Qualify Review: Not applicable.

Data Limitations: Not applicable.

New/Improved Data or Systems: Not applicable.

                                    .VII-28

-------
Coordination with Other Agencies

       In 2003, EPA will  continue  to  coordinate with  key Federal data sharing partners
including the USGS, Bureau of Indian Affairs, and the Fish and Wildlife Service as well as state
and local data sharing partners in public access information initiatives such as Window-to-My-
Enyironment and Enviromapper.  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.  For the Environmental Indicators Initiative, EPA is coordinating its program with
other state and Federal organizations,  including the Council for Environmental Quality and the
Environmental Council of States, to  insure that  the appropriate  context  is represented for
observed environmental and human health conditions.

       Regular meetings are held with agencies named in Executive Order 12898 to review the
environmental justice activities underway; to develop appropriate training tools; and to discuss
participation in the; National Environmental Justice Advisory Council (NEJAC).

Research

       In developing health assessments for the IRIS  database, EPA interacts frequently with
other Federal agencies involved  in health assessments and research.  In  the initial drafting,
documents such as "Toxicological Profiles" produced by Health and Human Services/Agency
for Toxic Substances  and  Disease   Registry  (HHS/ATSDR) are  routinely consulted for
information.  EPA also consults and utilizes 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.  Federal agencies are also consulted for
peer review of draft IRIS assessments.  Finally, the IRIS website has  electronic links to other
agencies' websites for the education and convenience of the IRIS user.

Statutory Authorities

Pollution Prevent Act (PPA)
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
                                        VII-29

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Electronic Freedom of Information Act  •
Government Paperwork Elimination Act
National Environmental Education Act
Federal Managers Financial Integrity Act (FMFIA)
Government Performance and Results  Act (GPRA)
Clinger-Cohen Act
Freedom of Information Act (FOI A)
Clean Air Act (CAA) (42 U.S.C. 7601-7671q) and amendments
Clean Water Act (CWA) (33 U.S.C. 1251 - 1387) and amendments
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)
Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901-6992k)
Safe Drinking Water Act (SOWA) 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
Small Business Regulatory Enforcement Fairness Act (SBREFA)
Unfunded Mandates Reform Act
Congressional Review Act
Regulatory Flexibility Act
Executive Order 12866
Plain Language Executive Order Emergency Planning and Community Right-to-Know Act
Pollution Prevention Act
Federal Fungicide, Insecticide and Rodenticide Act

Research

Clean Air Act (CAA) and amendments
Clean Water Act (CWA) and amendments
Environmental Research, Development, and Demonstration Act (ERDDA) of 1981
Toxic Substances Control Act (TSCA)
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)
Food Quality Protection Act (FQPA)
Safe Drinking Water Act (SDWA) and amendments
Federal Food, Drug and Cosmetic Act (FFDCA)
Emergency Planning and Community Right-to-Know Act (EPCRA) of 1986
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Superfund Authorization Reauthorization Act (SARA)
                                     VII-30

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                                  Environmental Protection Agency

                   FY 2003 Annual Performance Plan and Congressional Justification

                                 Quality Environmental Information

Objective: 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)

Improve Agency Information Infrastructure
and Security.
Environmental Program & Management
Hazardous Substance Superfund
Total Workyears
FY 2001
Actuals
$16,817.7
. $11,567.4
$5,250.3
1.1
FY 2002
Enacted
$23,814.1
$19,897.5
$3,916.6
184.4
FY 2003
Request
$30,528.0
$25,564.5
$4,963.5
185.3
FY 2003 Req.
v. FY 2002 Ena.
$6,713.9
$5,667.0
$1,046.9
0.9
                                           Key Program
                                        (Dollars in Thousands)

Administrative Services
Data Collection
Facilities Infrastructure and Operations
Homeland Security
Information Integration
Information Technology Management
Legal Services
Management Services and Stewardship
Public Access
Reinventing Environmental Information
(REI)
System Modernization
FY 2001
Enacted
$64.6
$1,342.3
$409.9
$0.0
$199.6
$14,465.4
$156.8
$0.0
$1,964.7
$0.0
$600.0
FY 2002
Enacted
$0.0
$0.0
$1,648.9
$1.928.4
$0.0
$17,441.8
$188.3
$368.1
$375.2
$1,266.1
$597.3
FY 2003
Request
$0.0
$0.0
$1,558.5
$0.0
$10,428.5
$15,720.2
$202.3
$254.2
$420.7
$1,343,6
$600.0
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$0.0
($90.4)
($1,928.4)
$10.428.5
.($1,721.6)
$14.0
($113.9)
$45.5
$77.5
$2.7
                                             VII-31

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FY 2003 Request

       During  2003,  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 program consists of infrastructure
support services, as well as policy and planning services.   It provides the basic foundation for
developing and managing 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, high performance
computing, and distributed processing services to desktop computing support, local area network
operations, internet services, and application development consulting.

       Building and  maintaining' a  credible and  effective Agency. information technology
program requires a strong commitment to customer service as well as strategic investment in new
technology to ensure efficient services delivery.  It also requires a commitment  to develop a
highly skilled 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 manage and secure the Agency's  information 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 information technology 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  assets.  In addition, EPA will continue its aggressive
efforts to  assess and respond to evolving threats and integrate information security into its day-
to-day business.

FY 2003 Change from FY 2002 Enacted

Superfund

    •  (+$2,504,100, 0  FTE)   Provides  support for the Agency to build the Information
       Exchange Network infrastructure needed to  meet the needs of the states and our other
       data partners.

EPM

    •  (+$5,707,200, 0  FTE)  Provides  support for  the  Agency to build the Information

                                        VII-32

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        Exchange Network infrastructure needed to meet the needs of the states and our other
        data partners.

Coordination with Other Agencies

        EPA-will continue to coordinate with other Federal agencies on information technology
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 and  will engage with other Federal agencies in
ensuring the  infrastructure for homeland security.  EPA will also continue to coordinate with
state agencies  on information  technology infrastructure  and  security  issues through  state
organizations  such as the National Association of State Information Resources Executives.  In
addition, EPA,  along with other Federal agencies, is involved in Office  of Management and
Budget-led e-government initiatives. As part of this effort, EPA, OMB, the Department of
Transportation, and 10 other Federal agencies are examining the expansion of EPA's Regulatory
Public  Access System,  a consolidated  on-line rule-making  docket system providing a  single
point of access for all Federal rules.  EPA is also coordinating efforts with the National Archives
and Records Administration  on  an e-records  initiative. This effort is aimed at establishing
uniform procedures, requirements,  and  standards  for electronic record keeping of Federal e-
government records.

Annual Performance Goals and Measures

Information Security
In 2003      OMB reports that all EPA information systems meet/exceed established standards for security,
In 2002      Complete risk assessments on the Agency's critical infrastructure systems, critical financial systems, and mission critical
           environmental systems.
Performance Measures:                               FY2001          FY2002         FY2003
                                                Actual           Enacted         Request
Critical infrastructure systems risk assessment findings will                               12                    Systems
be formally documented and transmitted to systems owners
and managers in a formal Risk Assessment document.
Critical financial systems risk assessment findings will be                               13                    Systems
formally documented and transmitted to systems owners and
managers in a formal Risk Assessment document.
Mission critical environmental systems risk assessment                                 5                    Systems
findings will be formally documented and transmitted to
systems owners and managers in a formal Risk Assessment
document.
Percent compliance with 13 criteria used by OMB to assess                                             75     Percent
Agency security programs reported annually to OMB under
the Government Information Security Regulatory Act.
Percent of intrusion detection monitoring sensors installed                                             75     Percent
and operational.
                                            VII-33

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Baseline:     In FY 2001, OEI will complete four risk assessments. The breakout is as fpllows: Critical Infrastructure Systems is one, Mission
          Critical Systems are two, and Critical Financial Systems is one.

Verification and Validation of Performance Measures

Performance Measure: Percent of intrusion  detection monitoring  sensors  installed  and
operational.
Performance Database: None
Data Source: Contractor task reports, verified by OEI,
QA/QC Procedures: QA/QC procedures consistent with Quality Assurance Plan.
Data Quality Review: NA
Data Limitations: Data reflect the  contractor's completion of technical tasks that are easily
verified by OEI. Thus, there are thus no serious data limitations.
New/Improved Data or Systems: NA

Performance Measure: Percent compliance with 13 criteria used by Office of Management
and Budget (OMB) to assess Agency security programs reported annually to OMB under
Government Information Security Regulatory Act.
Performance Database: The Office of Environmental Information (OEI) maintains historical
files of OMB's written assessment of EPA's annual security program report.
Data Source:  EPA's security staff,  located within the  Office of the Chief Information Officer
(CIO),  track Agency compliance with the OMB criteria.
QA/QC Procedures: OEI reviews, interprets, and verifies the basis for OMB's written
assessment. Physical tests of Agency systems are conducted using  best industry practice testing
protocols.  Automated monitoring  tools  test  and  audit  for  compliance with  Information
Technology  (IT)  security  standards.  EPA's IT  planning  staff, under the  CIO, check  for
appropriate  security  planning  and  procedures  as  part  of  the  Information  Technology
Management  Reform Act (ITTMRA) capital planning and investment process  required by
federal law.
Data Quality: Program offices are required to develop  security action plans composed of tasks
and milestones in  a number of security action areas. Program offices self report progress toward
these milestones.  EPA's security staff review these self-reported data and discuss anomalies with
the submitting office.
Data Limitations: Resources constrain  the security staffs ability to validate all of the self-
reported compliance data submitted by program systems' managers.
New/Improved Data or Systems: NA
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
                                          VII- 34

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Federal Insecticide, Fungicide, and Rodenticide Act
Food Quality Protection Act
Safe Drinking Water Act and amendments
Federal Food, Drug and Cosmetic Act
Emergency Planning and Community Right-to-Know Act
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
Pollution Prevention Act
                                        VII- 35

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Goal 8: Sound Science

-------
Environmental Protection Agency
2003 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-18
        Enhance Capabilities to Respond to Future Environmental Developments	VIII-28
        Improve Environmental Systems Management	 VIII-36
        Quantify Environmental Results of Partnerships ^Approaches	VIIL-45
        Incorporate Innovative Approaches	..VIII-48
        Demonstrate Regional Capability to Assist Environmental Decision Making	VIII-53
        Conduct Peer Review to Improve Agency Decisions	VIII-55

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                           Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                    Env. 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).

Sound Science, Improved
Understanding of Env. Risk and
Greater Innovation to Address Env.
Problems
Conduct Research for Ecosystem
Assessment and Restoration*
Improve Scientific Basis to Manage
Environmental Hazards and Exposures.
Enhance Capabilities to Respond to
Future Environmental Developments.
Improve Environmental Systems
Management.
Quantify Environmental Results of
Partnership Approaches.
Incorporate Innovative Approaches.
Demonstrate Regional Capability to
Assist Environmental Decision Making.
Conduct Peer Review to Improve
Agency Decisions.
Total Workyears
FY 2001
Actuals
$338,261.4
$134,525.5
$52,407.6
$48,626.6
$59,130.3
$9,539.9
$24,887.3
$6,417.2
$2,727.0
1,006.4
FY 2002
Enacted
$337,540.9
$120,594.7
$53,021.7
$64,249.5
$57,757.0
$8,672.7
$23,324.5
$6,677.9
$3,242.9
99.1.6
FY 2003
Request
$327,837.9
$119,114.6
$56,355.0
$50,965.8
$52,274.1
$9,058.4
$29,787.9
$6,591.8
$3,690.3
996.3
FY 2003 Req.
v. FY 2002 Ena.
($9,703.0)
($1,480.1)
$3,333.3
($13,283.7)
($5,482.9)
$385.7
$6,463.4
($86.1)
$447.4
4.7
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
                                      VIII-1

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environmental results. Under Goal 8, EPA conducts core research to improve our understanding of
the fundamental principles underlying risk assessment and risk management.

       Today's environmental innovations extend beyond scientific and technological advances;
they also include new policies and management tools that respond to changing conditions and needs.
 Examples include market-based incentives that provide an economic benefit for environmental
improvement, regulatory flexibility that gives companies more discretion in how specific goals are
met, and disclosure of information about environmental performance. As a result of these and other
innovations, the nation's environmental protection system is evolving. The focus is on creating a
system that is more efficient and effective and more inclusive of all elements of society.

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). 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 increases our understanding of environmental processes and our
capability to assess environmental risks to both human health and ecosystems.

       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 is providing the methods and designs to address these weaknesses. In
FY 2003, EPA will produce a report on the condition of the nation's estuaries.  This report will
provide the first integrated, comprehensive, and statistically valid national report card on the health
of a specific aquatic resource.  This work is an important step toward providing the scientific
understanding to measure, model,  maintain,  and restore  the  integrity  and sustainability of
ecosystems.
                                        VIII- 2

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       In order to improve  the scientific basis for identifying, characterizing, assessing, and
managing environmental exposures that can pose the greatest health risks to the American public,
EPA is committed to developing and verifying innovative methods and models for assessing the
susceptibilities of sub-populations, such as children, to environmental agents such as pesticides.
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. Continued research in the areas of endocrine disrupting chemicals
and mercury is leading toward the development of improved methodologies for integrated human
health and environmental risk assessment and sound approaches for risk management. EPA will
conduct research to enhance its capacity to evaluate the economic costs and benefits and other social
impacts of environmental policies. These efforts, undertaken in concert with other agencies, will
result in  improved methods to assess economic costs and  benefits, such as improved economic
assessments of land use policies and improved assessments for the valuation of children's health, as
well as other social impacts of environmental decision-making.

       The Agency also seeks to characterize, prevent, and clean up contaminants associated with
high priority human health and environmental problems through the development and verification of
improved environmental tools and technologies. EPA will incorporate a holistic approach to
pollution prevention by assessing the interaction of multiple stressors threatening both human and
environmental health, and by developing cost-effective responses to those stressors.  Research will
also explore the principles governing sustainable systems and the integration of social, economic,
and environmental objectives in environmental assessment and management.  Emphasis will be
placed on developing and assessing preventive approaches 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  that 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.

       In FY 2003, EPA will improve its  regulatory and policy development process. The Agency
will strengthen the  policy analysis of key regulatory  and non-regulatory actions, improve the
economic analysis underlying Agency actions, and improve the regulatory and policy action
information management system.

       The Agency also  seeks  to  develop and verify  improved tools, methodologies,  and
technologies  for modeling, measuring, characterizing, preventing, controlling, 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 that eliminate,
                                       VIII- 3

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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,

       EPA's strategy  for  solving  environmental problems  and improving our  system of
environmental protection includes developing, implementing and institutionalizing new policy tools,
collaborative community-based and sector-based strategies, and the capacity to experiment, test, and
disseminate innovative ideas that result in better environmental outcomes. In each area, EPA is
looking to advance the application of the innovative tool or approach by promoting broader testing
and  incorporation into our  system of environmental protection and to support collaborative
partnerships  for  environmental  management  based  upon  prudent  analysis  and decision
methodologies. 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.

       EPA's community-based approach  works to provide integrated assessment tools  and
information and direct assistance for environmental protection in partnership with local, state, and
Tribal governments. The work focuses on building the capacity of communities to work effectively
at identifying and solving environmental issues in ways that support healthy local economies and
improved quality of life.

       Sector strategies complement  current EPA activities by allowing the Agency to approach
issues more holistically; 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 fo'ster  the development of innovations at the industry sector level,
testing new regulatory ideas, technologies, tools, and incentives in non-adversarial settings.  In a
somewhat related effort, EPA is exploring the potential for broader use of a sector-based regulatory
model for small businesses developed by the state of Massachusetts.

Strategic Objectives and FY 2003 Annual Performance Goals

Conduct Research for Ecosystem Assessment and Restoration

*      Provide the public with a reliable and statistically valid baseline for the condition of the
       Nation's estuaries against which to measure the success of ecosystem protection and risk
       management practices.

Improve Scientific Basis to Manage Environmental Hazards and Exposures
                                       VIII- 4

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Enhance Capabilities to Respond to Future Environmental Developments

Improve Environmental Systems Management

•      Develop 10 testing protocols and complete 40 technology verifications for a cumulative
       Environmental Technology Verification (ETV) program total of 230 to aid industry,
       states, and consumers in choosing effective technologies to protect the public and
       environment from high risk pollutants.

Quantify Environmental Results of Partnership Approaches

Incorporate Innovative Approaches

Demonstrate Regional Capability to Assist Environmental Decision Making

Conduct Peer Review to Improve Agency Decisions


Highlights

Research for Ecosystem Assessment and Restoration

       In order to balance the growth of human activity with the need to protect the environment, it
is important to understand the current condition of ecosystems, what stressors are changing that
condition, what the effects are of those changes, and what can be done to prevent, mitigate, or adapt
to those changes. In FY 2003 EPA is proposing ati initiative to refine and extend the Environmental
Monitoring and Assessment Program's (EMAP) approach to the large rivers of the Mississippi River
Basin (the Central Basin). The large rivers of the Central Basin are the inland receiving waters for
the majority of the Nation's heartland, and are the link between small upland streams and the Gulf of
Mexico. Through cooperative programs with the Regions, states, Tribes, and other Federal agencies
in the Central Basin, EPA proposes to fill remaining scientific gaps (indicators, sampling design, and
sampling methodology) currently limiting our ability to measure the condition of large rivers. EPA
will use this information, along with that provided by other agencies, to develop future baseline
assessments of Central Basin rivers. The approaches and technology developed within this effort
will  be transferred to the many responsible parties within the Basin to enable  coordinated,
scientifically defensible, long-term monitoring of the condition of these rivers that can help inform
environmental management decisions affecting these rivers as well as the Gulf of Mexico. These
approaches and technologies will also have widespread applicability to all of the Nation's large
rivers. Also in FY 2003, the National Coastal Assessment (NC A) program will produce a report on
the condition of the nation's estuaries. This report will provide the EPA and Congress with the first
integrated,  comprehensive, and statistically valid national report card on the health of a specific
aquatic resource.

Research for Human Health Risk Assessment
                                       VIII- 5

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       To reduce uncertainties in risk assessment, in FY 2003 human health research will develop
measurements,  methods, and models  to  evaluate exposures and  effects of  environmental
contaminants, particularly in children.  The Agency will continue to support a children's health
research program specifically targeted at addressing major areas of uncertainty and susceptibility. In
an effort to address children's exposure in day care centers and  school environments, EPA is
proposing new research to develop information on exposure, determinants of exposure for children
in school and day care environments, and approaches to reduce potentially harmful exposures, and to
link  these  with health outcomes that  can  be measured  using school health attendance and
performance records.   Other children's research focuses on asthma and data gaps (e.g., the
Longitudinal Birth Cohort Study).

       EPA will also conduct research  on the influence of genetic factors on responsiveness to
environmental chemicals. The main scientific  question for this research is  whether genetic
differences are sufficient to influence risk assessment. Along with the current program designed to
address aggregate and cumulative risks, in FY 2003 the Agency is proposing increased efforts to
more •comprehensively address these areas. This research is intended to complement and build on
EPA's draft Human Health Research Strategy.  New research will address temporal variation in
exposures and its influence on health effects, methods for predicting the relative toxicity of mixture
components, the development of biological markers that can quantify  exposure, effects and
susceptibility, and the use of the biological data and information on biological mechanisms and
mode of action to assess cumulative risk.

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 2003, research will focus
on improving our understanding of the impacts of potential exposure to environmental pollutants,
particularly endocrine  disrupting  chemicals (EDCs) and mercury, on human health and the
environment, and on developing approaches to reduce human health and ecological risks.  This
research will result in accessible and seamless methodologies for combined human health and
ecological risk assessments. Additional research results will include an improved framework for
decision-making, increased   ability to anticipate and  perhaps  prevent  potentially serious
environmental risks, improved  methods for assessing socio-economic factors,  and enhanced
communication with the public  and other  stakeholders.   EPA will  also  direct special grant
solicitations to support research at Minority Institutions.  This program specifically assists minority
institutions in establishing and  supporting  environmental research activities that would build
capacity to assess and solve environmental problems. The cumulative result of EPA research is to
provide sound  approaches for risk  management to decision makers, providing  them with the
integrated view of risk needed to make intelligent choices.

Improve Environmental Systems Management

       In FY 2003, the Agency will continue its systems-based approach to pollution prevention,
which will lead to a more thorough assessment of human health and environmental risks and a more
                                       VIII- 6

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comprehensive management of those risks. EPA will develop tools and methodologies to prevent
pollution at its source and will evaluate environmental technologies through the Environmental
Technology Verification (ETV) Program. Research will also develop methodologies to better
convey the social, economic, and environmental costs and benefits of reducing environmental risks.
Additionally, through the National Environmental Technology Competition (NETC), EPA will
recognize and reward innovative technologies that produce more effective and lower cost solutions
to environmental problems.  In FY 2003, EPA plans to develop competitive solicitations for
technologies in various areas of environmental concern, including arsenic treatment technologies for
small community drinking water systems. Research efforts will also focus on the reduction of
persistent bioaccumulative toxics (PBTs) and volatile organic compounds (VOCs). This work will
enhance EPA's ability to mitigate harm caused by environmental pollutants and will provide the
public and private sectors with cost-effective environmental technologies.

Regulatory and Policy Development

       EPA will improve its regulatory and policy development process by strengthening the policy
analysis of key regulatory and non-regulatory actions, improving the economic analysis underlying
Agency actions, and improving the regulatory and policy action information management system.

Increased Community-Based Approaches

       Regional Geographic Initiatives (RGI) are an approach EPA Regional offices use to partner
with states, local governments, private organizations, and others to solve environmental problems
that are of particular local concern to the Regions and states.

Science Advisory Board Peer Review and Consultations

       The Agency will continue to support the activities, principally peer reviews, of the SAB,
which provides independent technical advice to Congress and the Administrator on scientific,
engineering, and economic issues that serve  as the underpinnings for Agency positions, from
research direction to regulations. The SAB helps the Agency to "do the right science" and to 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. In this regard, the SAB is active in consulting with the Agency on how
to incorporate science appropriately and effectively into the new approaches the Agency is using to
make environmental decisions.
                                         VIII-7

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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 tenet for actions taken by the Agency, then external factors will have a
minimal impact on the goal.
                                         VIII-8

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                   Env. Problems

Objective: Conduct Research for Ecosystem Assessment and Restoration.

      Provide the scientific understanding to measure, model, maintain, and/or restore, at multiple
spatial scales, the present and future integrity of highly valued ecosystems.

                                 Resource Summary
                                (Dollars in Thousands)

Conduct Research for Ecosystem
Assessment and Restoration.
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
Total Workyears
FY 2001
Actuals
$134,525.5
$10,237.9
$0.0
$124,287.6
349.0
FY 2002
Enacted
$120,594.7
$6,340.9
$24.2
$114,229.6
352.6
FY 2003
Request
$119,114.6
$5,960.1
$21.6-
$113,132.9
350.9
FY 2003 Req.
v.FY2002Ena.
($1,480.1)
($380.8)
($2.6)
($1,096.7)
-1.7
                                    Key Program
                                (Dollars in Thousands)

Administrative Services
Coastal Environmental Monitoring
Congressional ly Mandated Projects
Ecosystems Condition, Protection and
Restoration Research
Environmental Monitoring and Assessment
• Program, EMAP
Facilities Infrastructure and Operations
Homeland Security
Management Services and Stewardship
FY2001
Enacted
$250.3
$7.467.5
$7,773.3
$65,261.3
$29,470.7
$6,537.9
$0.0
$1,397.6
FY 2002
Enacted
$0.0
$7,325.3
$7,770.9
$66,707.9
$32,360.0
$5,320.2
$65.5
$1,044.9
FY 2003
Request
$0.0
' $7.671.2
$0.0
$67,202.1
$38,259.6
$4,963.5
$0.0
$1,018.2
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$345.9
($7,770.9)
$494.2
$5,899.6
($356.7)
($65.5) •
($26.7)
                                       VIII-9

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FY 2003 Request

       Natural ecosystems provide valuable services and resources to the public, such as air and
water purification, flood control, food, and raw materials for industrial processes, 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, the
stressors changing that condition, the consequences of those changes, and the consequences of
preventing, mitigating, or adapting to those changes. EPA's ecological research program has four
primary areas of emphasis:  1) ecological monitoring; 2) ecological process and modeling; 3)
ecological risk assessment; and  4) ecological risk management and restoration. In FY 2003,
improvements in ecological assessment methods targeted at the application/evaluation of Ecological
Risk Assessment Guidelines in specific scenarios (e.g., default assessment endpoints, watershed risk
assessment, invasive species, dioxin) will increase the decision maker's understanding and use- of
this scientific information.

Ecological Monitoring Research

       EPA's ecological monitoring research efforts consist in large part of the various components
of the Environmental Monitoring and  Assessment Program (EMAP).  EMAP  focuses on the
monitoring science required to develop EPA's capability to measure trends in freshwater and marine
ecosystem health.  EMAP includes the National Coastal Assessment (Coastal 2000),  Western
EMAP, work in landscape ecology, and programs to develop and refine environmental indicators. In
FY 2003 the National Coastal Assessment (NC A) program will produce a report on the condition of
the nation's estuaries.  This report will provide the EPA and Congress with the  first integrated,
comprehensive, and statistically valid national report card on the health of a specific aquatic
resource. Also in FY 2003, the NCA will enter the second year of coastal monitoring for Alaska.
This reflects a one-year delay in initiating these efforts due in large part to the inherent logistical
problems of working in Alaska and to changes in the program leadership. The Western EMAP
(a.k.a. Western Pilot) study will also continue as a primary activity of EPA's monitoring research.
This study has four areas of focus:  1) the landscape atlas for western states; 2) intensive study of
three watersheds (Columbia River basin, Missouri River basin, and San Francisco Bay region); 3)
Pacific coast monitoring; and 4) a western-wide stream survey. In FY 2003 the Western Pilot will
continue with the study of streams in the western U.S., and will begin focused studies in selected
estuarine and near-shore sites.  These two programs will provide water resources managers with
tools necessary to measure status and trends in the condition of the nation's streams and estuaries
and to measure the impacts of management decisions.

       EPA is also proposing to refine and extend the EMAP approach to  large rivers in the
Mississippi River Basin (the Central Basin).  These rivers are the inland receiving waters for the
majority of the nation's heartland, and are the link between small upland streams and the Gulf of
Mexico.  Central Basin rivers are challenged by long-term loadings of nutrients, sediments and toxic
chemicals as well as extensive habitat alterations.  The resulting inputs to the Gulf of Mexico are a
significant contributor to causes of hypoxia, loss of wildlife habitat, and water quality concerns. At

                                         VIII-10

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the same time, these rivers represent a monitoring problem for the states and Tribes located in the
center of the country because they are too large  and complex for conventional environmental
monitoring  and assessment.  Consequently,  large rivers  represent  a  scientific  gap  in  our
understanding of the flowing waters of the U.S. Through cooperative programs with the Regions,
states, Tribes and other Federal agencies, EPA proposes to initiate a program within the  Central
Basin to fill remaining scientific gaps currently limiting our ability to measure the condition  of large
rivers. In FY 2003, EPA will expand already planned research on indicators, monitoring designs,
and sampling techniques for the upper Missouri River to include the lower Missouri River and upper
Mississippi  River. The approaches and technology developed will be transferred to the many
responsible decision-making parties within the Basin to enable coordinated, scientifically defensible,
long-term monitoring of the condition of these rivers.  Data from such monitoring can help inform
environmental management decisions regarding these rivers, and provide support to managers in
establishing total maximum daily loads and meeting water quality standards. There are important
scientific linkages between the Central  Basin effort and proposed watershed  mitigation  and
management efforts. The health of these large rivers is linked to the conditions of small streams, and
ultimately their  watersheds.  Once we are able to determine the condition of our large rivers,
understanding the processes occurring in the watersheds will be important for diagnosing the causes
of impaired conditions in these river systems.  These approaches and technologies step off from
successful efforts in the Mid-Atlantic, western U.S., and  coastal regions, and will also have
widespread applicability to all of the nation's large rivers.

       Landscape ecology research focuses on improving estimates of the effects of land-based
stressors on aquatic, estuarine, wetland, terrestrial, and landscape conditions. It also extends the
EMAP probability sample design to estimate conditions of ecological resources across the West
through  the application of spatially-distributed models.  Landscape characterization research
includes: (1)  planning and generating  land characteristic  databases for determining  current
conditions and change  (land cover and other spatial databases); (2) continuing remote  sensing
research and developing high resolution imagery applications to document changes in land cover
over time; and (3) quantifying relationships between landscape metrics and specific parameters.
This research will significantly improve EPA ecological monitoring and assessments, as well as risk
management decisions, and will reduce uncertainty in other high priority research programs.

       Environmental indicators research will focus on: (1) the development of the next generation
of biological indicators to characterize ecosystem condition and diagnose exposure  to specific
stressors; (2) their application to the monitoring of aquatic ecosystems; and (3) their interpretation
in ecological risk assessments.  These indicators include new condition indicators (e.g.,  genetic
diversity of aquatic species) and new multi-metric methods (e.g., prototype indicators for deep
rivers) to assess  aquatic ecosystem population and community integrity.

       Population genetics data are unique to ecological integrity studies,  providing the only
inherent measure of population fitness and sustainability which can be associated with historic or
anthropogenic stresses. The research also includes the use of DNA  microarray technology to
develop highly specific and sensitive diagnostic indicators of exposure to chemical stressors for
which no current measures of bioavailability exist (e.g., pesticides). This technology can be used to

                                         VIII-11

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develop methods capable of simultaneous measurement of the bioavailability of several chemical
stressors to aquatic species exposed to mixtures.

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 environmental protection goals.

       Since measurements are not feasible in every watershed because of cost and other practical
constraints, landscape indicators offer an efficient means to detect change, measure watershed level
stressors, and quantify relationships between landscape metrics and specific parameters.  A new
generation of wall-to-wall spatial data (e.g., Multi-Resolution Landscape Characterization (MRLC)
land cover data 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 will
conduct a national assessment of landscape change between the early 1970's and  early 2000's,
evaluate the consequences of these changes on aquatic resources, and develop national assessments
of riparian habitat conditions.

       EPA will also conduct research to address the effects of excess nitrogen from atmospheric or
other sources on terrestrial and aquatic ecosystems, including the development of models that predict
the loading-response relationships for nitrogen in aquatic habitats and improved knowledge of the
biogeochemical processes controlling nutrient processes in watersheds. Such models can be used for
stressor source apportionment and for the assessment of management and  mitigation strategies. In
addition, deposition of nitrogen, along with other atmospheric stresses such as sulfur,  will be
monitored throughout the northeastern U.S. to determine the effects of acid deposition on streams,
rivers, and lakes.

        Other ecological process and modeling research will include the development of approaches
for evaluating relative  risks from chemical and nonchemical  stressors  on fish  and wildlife
populations across large areas or regions.  Research in this area will improve the ability to perform
retrospective (diagnostic) and prospective (forecast) assessments of risks to biota as determined by
the spatial distribution of habitat quality  and stressors (e.g., toxic chemicals, nutrients, disease,
invasive species) in the landscape. Four major research activities include: 1) developing approaches
to characterize landscapes (and water bodies) in terms of habitat quality and stressor distributions
using remotely-sensed information and monitoring data; 2) developing mechanistically-based
approaches for extrapolating biological  response across species, chemicals, time, space, and
response endpoints;  3) developing stressor-response relationships and modeling approaches for
predicting-population-level health as functions of habitat quality and stressor distributions; and 4)

                                         VIII-12

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characterizing spatial and temporal variability to distinguish between natural ranges of variability
and anthropogenic impacts. This information can then be used to describe habitat requirements for
wildlife and to manage watersheds to achieve and maintain desired ecological conditions, using
biological indicators and metrics to determine the condition of aquatic ecosystems.

       Due to the complexity of ecological systems, making scientifically sound predictions usually
requires the use of numerical models, ranging in complexity from empirically based estimates to
process-based simulations.  Because  aquatic  ecosystems integrate  atmospheric,  landscape,
groundwater, and upstream influences, models and support tools are being developed to manage,
integrate, and evaluate the transport and fate of nutrients and other stressors in the environment over
multiple scales. The resulting modeling framework will integrate multiple models and data sets to
improve the environmental management community's ability to evaluate the impact of air quality
and waste and watershed management practices on ecological and human health conditions, by
embracing the watershed/airshed approach to environmental management, and building upon the
latest technologies for environmental monitoring and geographic representation. It will address
uncertainties in distributions of single-stressors and  interactions among multiple stressors, and
develop methods for incorporating uncertainty in decision-making. Given that the  challenges of
today's environmental problems far exceed what any one group or agency can expect to resolve, an
open framework (non-proprietary) technology approach will  facilitate combination of individual
components developed by EPA and partners into multi-disciplinary, multi-scale modeling and
assessment tools.

Ecological Assessment Research

       EPA's ecological 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, and can be used
to compare the relative risks associated with different stressors, regional areas, and ecosystems.
This valuable tool enables environmental risk managers at local, state, and Federal levels to identify
priority ecosystems that are 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.  Continuing research in FY 2003
will build on EMAP and other data to project future environmental conditions in the region so that
risk management activities can be targeted proactively. The Regional Vulnerability Assessment
(ReVA) project, begun in FY 2000, will continue to 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 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 conditions and  to better communicate trade-offs
associated with  alternative policy decisions. Given that we can not protect every ecosystem,
everywhere, at all times, examining resources and their vulnerability on this larger scale will greatly
assist in identifying ecologically important features of the region meriting special consideration by
local, regional, or national managers.

                                         VIII-13

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Ecosystem 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. These technologies will diagnose
ecosystem restoration needs, evaluate  progress  toward restoration, and establish ecologically
relevant goals and decision support systems for state and community planners. EPA is developing
integrated restoration technologies which focus on: 1) rehabilitation, to the extent possible, of the
structure of watershed ecosystems (e.g., restoring riparian zones); 2) reduction of the perceived
stressors (e.g., cleaning up contaminated sediments); and 3) enhancing the natural resilience of the
system. 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 2003 Change from FY 2002 Enacted

 S&T

•      (+$4,875,000) This initiative refines and extends the EMAP approach to large rivers in the
       Mississippi River Basin (the Central Basin).  Through cooperative  programs with the
       Regions, states, Tribes and other Federal agencies in the Central Basin, EPA proposes to fill
       remaining scientific gaps (indicators, sampling design, and sampling methodology) currently
       limiting our ability to measure the condition of large rivers. EPA will use this information,
       along with that provided by other agencies, to develop future baseline assessments of Central
       Basin rivers.  In FY 2003, EPA will expand  already planned  research on  indicators,
       monitoring designs, and sampling techniques for the upper Missouri river to include the
       lower Missouri and upper Mississippi rivers. The approaches and technologies developed
       will  be  transferred to the  many responsible parties within the Central Basin to enable
       coordinated, scientifically defensible, long-term monitoring. Data from such monitoring can
       help inform environmental management decisions regarding these rivers, and provide
       support to managers in the establishment of total maximum daily loads and meeting of water
       quality standards. These approaches and technologies build on successful efforts in the Mid-
       Atlantic, western U.S., and coastal regions, and will also have widespread applicability to all
       of the Nation's large rivers.

•      (+$282,200, +1.5 FTE) This increase in resources will be used to coordinate EPA scientific
       participation in regulatory  development with program offices on major rules.

*      (-$500,000) This is a modest reduction to work on core diagnostic and predictive tools for
       watershed assessment and restoration that  will  result in  a minor slowing in this work.

                                         VIII-14

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                  Resources are  being shifted to high priority research on the  evaluation of public health
                  outcomes in Goal  8, Objective 2.


         •        (-$7,770,900) The F Y 2003 Request is $7,770,900 below the FY 2002 Enacted budget level

                  due to Congressional earmarks received during the FY 2002 appropriations process that are

                  not included in the FY 2003 President's Request.


         GOAL: SOUND SCIENCE, IMPROVED UNDERSTANDING OF.ENV. RISK AND GREATER
         INNOVATION TO ADDRESS ENV. PROBLEMS

         OBJECTIVE: CONDUCT RESEARCH FOR ECOSYSTEM ASSESSMENT AND RESTORATION.

         Annual Performance Goals and Measures

         Research

         Estuarine Ecosystem Conditions

         In 2003   Provide the public with a reliable and statistically valid baseline for the condition of the Nation's estuaries against which to measure
                      the success of ecosystem protection and risk management practices.

         In 20.01   Baseline conditions in the ecological condition of the Nation's estuaries have been established from which changes and ultimately
                       trends can be evaluated at regional scales.

         Performance Measures:                                     FY2001           FY2002           FY2003
                                                                 Actual           Enacted           Request
         Report describing the condition of the Nation's Estuaries.                     1                                          report

         Report on the condition of Nation's estuaries based on a                                                         1      report
'-,        statistically valid sampling design so that data is comparable
         across the Nation.



         Baseline: The coastal monitoring strategy responds to the needs of EPA and the coastal states and tribes for information on the health of the
                       coastal environment that will inform decisions to protect these vital coastal resources. For the past decade, ORDs Environmental
                       Monitoring and Assessment Program (EMAP) has been working with federal, state, and academic scientists to develop the most
                       cost-effective methods for measuring the physical, chemical, biological, and ecological  conditions of coastal waters, bays,
                       estuaries, beaches, and coastal wetlands. The data from this decade of EMAP research  and field surveys in select areas of the
                       country were combined with select data from EPA (ORD and OW), NOAA. Department of Interior, and Department of
                       Agriculture to form an assessment of estuarine condition in 2001.    Because of the need to determine current environmental
                       health baselines  and quantitatively measure improvement for GPRA, EPA developed an initiative that would implement the
                       proven science developed by EMAP for the ecosystems found throughout the US coastal waters.  Starting in 2000, survey
                       information has been collected on the condition of estuarine resources, and the kinds of problems associated with them, in each
                       conterminous coastal state and in Puerto Rico. In 2003, these data will be compiled for the first comprehensive National Coastal
                       Assessment of estuarine condition in the contiguous U.S. This report also will compare the condition of estuaries in the period
                       1990-1997 to the period 2000-2001. For the first time, this will provide the public with a reliable picture of the current and
                       changing condition of the Nations estuaries and coastal waters with known confidence, and using consistent measurements.

         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.

         Performance Measures:                                     FY200I           FY 2002           FY2003
                                                                  Actual           Enacted           Request
         Trends in acidity in lakes and streams in the NE and Mid                                       1                        report
         Atlantic Regions of the U.S.



         Baseline: In response to the Clean Air Act amendments, actions were taken to reduce the causes of acid deposition and aid in the recovery of


                                                              VIII-15

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          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.
Verification and Validation of Performance Measures

Performance Measure (PM): Report on the Condition of the Nation's estuaries.

Performance Database: Program output, no internal tracking system

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Reviews: N/A

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 look beyond
specific resource  management responsibilities such as those assigned to other agencies like the
National Oceanic and Atmospheric Administration's (NOAA) National Marine Fisheries Service,
U.S. Department  of Agriculture's (USDA) Forest Service, and the Department of the Interior's
(DOI) Fish and Wildlife Service (USFW) 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 (DOE's) Oak Ridge National
Laboratory. Development of the Multimedia Integrated Modeling System is coordinated with the
Army  Corps of Engineers  (USAGE), USDA, and DOE.  EPA  cooperates  with the CENR's
Subcommittee  on Ecological  Systems, in the restoration of habitats and species, impacts  of
landscape change, invasive species and inventory and monitoring programs.
                                         VIII-16

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       EPA is working through interagency agreements with the USAGE on the development of
tools for the management of stressors in reservoir and lake watersheds and the establishment of an
approach for the development of decision support systems to manage these types of ecosystems.
Through interagency agreements with the U.S. DOI's U.S. Geological Survey (USGS), EPA has
worked to investigate  and develop tools  for assessing the impact of hydrogeology on riparian
restoration efforts.  This work also focuses on development of tools for the dispersal modeling of
invasive species, the evaluation of the effectiveness of restoration efforts to reconnect groundwater
and surface water hydrology, and the establishment of zones of denitrification within impaired
streams. The collaborative work with the USGS continues to play a vital role in investigating the
impact and fate of atmospheric loadings of nitrogen and nitrogen applications as part of restoration
technologies on terrestrial and aquatic ecosystems.  All of these efforts have significant implications
for risk management in watersheds, total maximum daily  load (TMDL)  implementation, and
management of non-point  source pollutants.

       Additional interagency grants programs in Ecology include: the Ecology and Oceanography
of Harmful Algal Blooms (EcoHAB) program with NOAA, NSF, DOD, and NASA; nutrient science
for watershed management with USDA; and the 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 U.S.C. 13101-13109)
'Clean Water Act (CWA) Title I (33 U.S.C 1251-1271)
                                       VIII-17

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                           Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                    Env. Problems

Objective: 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)

Improve Scientific Basis to Manage
Environmental Hazards and Exposures.
Environmental Program & Management
Science & Technology
Total Workyears

FY2001
Actuals
$52,407.6
$3,896.6
$48,511.0
163.4

FY 2002
Enacted
$53,021.7
$3,118.4
$49,963.3
175.8

FY 2003
Request
$56355.0
$2.937.3
$53,417.7
176.0

FY 2003 Req.
v. FY 2002 Ena.
$3,333.3
($181.1)
$3,514.4
0.2

                                    Key Program
                                 (Dollars in Thousands)

Administrative Services
Congressionally Mandated Projects
Endocrine Disrupter Research
Facilities Infrastructure and Operations
Homeland Security
Human Health Research
Legal Services
Management Services and Stewardship
Research to Support FQPA
FY 2001 '
Enacted
. $70.1
$0.0
$366.9
$3.370.9
$0.0
$49,825.7
$41.9
$459.0
$L214.5
' FY 2002
Enacted
$0.0
$731.3
$369.3
$2,656.7
$360.1
$47,225,6
$51.0
$410.7
$1.217.0
FY 2003
Request
$0.0
$0.0
$372.2
$2,505.1
$0.0
$51,824.5
$54.8
$377.4
$1,221.0
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($731.3)
$2.9
($151.6)
($360.1)
$4,598.9
$3.8
($33.3)
$4.0
                                       VIII-18

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FY 2003 Request

       EPA's human health research program is based on the assumption that major uncertainties in
risk assessment can be reduced by understanding the fundamental determinants of exposure and dose
and the basic biological changes that result from one or more exposures to one or more chemicals.
Historically, EPA focused its human health risk management decisions and regulations on single
environmental pathways and individual contaminants. Often, environmental legislation mandated
this approach.  In recent years, however, 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 statutes.

       EPA's draft Human Health Research Strategy 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. Under the draft
strategy, EPA will conduct research needed to address complex environmental issues, such as
harmonization of cancer and non-cancer risk assessments, susceptible subpopulations, aggregate and
cumulative risk, susceptibility resulting from age, developmental stage, gender, preexisting disease,
etc., and the evaluation of health-driven regulatory decisions.

       In FY 2003, human health research will be undertaken in four key areas: 1) development of
multimedia/multipathway exposure methods, data, and models; 2) development of mechanistically-
based data, tools, and approaches; 3) development and verification of innovative methods and
models for assessing risks to susceptible subpopulations; and 4) development of tools to enable
evaluation of public health outcomes.

Multimedia/multipathway exposure methods and models

       EPA is committed to filling critical data gaps that reduce the risk  assessor's reliance on
default assumptions and improves the risk assessment process. One key way to accomplish this goal
is  by  developing models to assess,  predict,  and diagnose the population's distribution of
multimedia/multipathway exposures to major classes of environmental agents. Research activities in
this area will address substantial uncertainties that exist in human health risk assessment and thereby
improve the scientific basis for assessing and managing risks. Activities include: 1) human exposure
measurement and modeling research, including source emission modeling; 2) research on aggregate
and cumulative exposures, including mixtures;  3) an exposure study to examine the key factors
influencing young children's exposures; 4) continued research supporting the National Human
Exposure Assessment  Survey (NHEXAS); and 5) research in support of the US/Mexico Border
Program, the National  Children's Study, and other relevant exposure programs.

       Through the exposure research program, EPA will develop methods, measurement data, and
measurement-derived models that estimate source emission, aggregate and cumulative exposures
and source-exposure-dose relationships for contaminant mixtures to which the general population,
children, and other susceptible populations are exposed daily. Research will continue to focus on
developing,  evaluating, and enhancing multimedia, multi-pathway  exposure modeling modules

                                        VIII-19

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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 real-world 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 pollutants throughout the body.  These
human exposure-to-dose models provide the essential linkage between regional environmental or
micro-environmental models and the corresponding dose-response models designed by toxicologists.

       In addition, the Agency will continue to develop  measurements, methods,  models, and
activity pattern data essential for eliminating critical gaps in our knowledge about children's
aggregate and cumulative exposures to environmental contaminants. This research will provide
information and data needed to characterize children's age-related and developmental stage factors
of exposure. These children's exposure data will also be used to verify and update the aggregate and
cumulative exposure source-to-dose models. The ultimate result of this research is to produce
distributions of high quality children's, other susceptibles', and the general population's exposure
and exposure factor data that will reduce the risk assessor's reliance on default assumptions.

       Along with the current program designed to address aggregate and cumulative risks, in FY
2003 the Agency is proposing increased efforts to more comprehensively address these areas. This
research is  intended to complement and build on EPA's draft Human Health Research Strategy.
These efforts will provide a focal point for Agency-wide strategic research planning  and methods
development and will address a broader array of issues than can be addressed within EPA's current
human health research program.  New research will address:  1) the timing of exposures and its
influence on health effects; 2) methods for predicting the relative toxicity of mixture components; 3)
the development of biological markers that can quantify exposure, effects and susceptibility; and 4)
the use of the biological data and information on biological mechanisms and mode of action to
assess cumulative risk.

       EPA also conducts methods, measurement, and modeling research through the NHEXAS
program, which integrates measurements and modeling to investigate critical information gaps about
population-scale distributions  of exposures to contaminant mixtures.  In FY 2003, the Agency will
continue to implement the NHEXAS strategic data analysis plan.   The NHEXAS  data provide
fundamental input to the Agency and the scientific community for the development of aggregate
exposure models, and assessments, and the evaluation of risk management/mitigation strategies.
Building on basic analyses initiated in FY 2001,  research will include more detailed/complex
analyses, such as characterization of variance components, evaluation of spatial variability of
exposures,  construction of empirical exposure distribution  models, and development of aggregate
exposure assessments.

       A major children's exposure field study will begin in FY 2003, which focuses on young
children's aggregate exposure to pesticides hi homes, day care centers and schools (this research is
being leveraged with similar research programs within Goal 3, Safe Food).  This field study will
develop essential information for improving models that represent dermal uptake and exposure,
dietary exposure and gastrointestinal (GI) uptake, and aggregate exposure. The validated children's

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exposure protocol will be used by researchers within EPA, the scientific community, and by the
pesticide and chemical industry to conduct future children's exposure studies and develop high
quality data on exposure and exposure factors mandated by the Food Quality Protection Act
(FQPA). The study will be completed in FY 2004 with delivery of major products (e.g., a validated
protocol, a technical publication outlining the distributions of exposures by age and distribution of
key exposure factors, an updated Exposure Factors Handbook, etc.) in FY 2005.

       In the risk assessment area, research on mixtures, cumulative and aggregate exposures and
cumulative and aggregate risks will continue to provide methodologies, prototypical assessments,
and guidance for risk assessors. This information will be used to address key research issues in the
areas of multiple sources, multiple  chemicals and stressors, multiple routes and pathways, and
multiple time frames and durations of exposure. Research highlights include: 1) identifying the most
effective multiple source models for EPA risk assessments and demonstrating their use in risk
assessments; 2) developing methods for predicting interactions in mixtures and applying them to risk
assessments;  3) developing and validating  methods for identifying and characterizing exposure
levels associated with multiple pathways; and 4) developing guidance for which average exposure
times are most appropriate for various health effects.

Mechanistically-based Data, Tools,  and Approaches

       There is a lack of understanding about the underlying biological, chemical, and physical
processes that determine target tissue exposures and effects, which limits the Agency's ability to
assess potential health  risks  of environmental exposures  -  qualitatively  and quantitatively.
Insufficient knowledge of these processes introduces uncertainties into the risk assessment process
that may allow for wide interpretation of what is often limited data.  Research in this area addresses
both qualitative (hazard identification) and quantitative (dose-response analysis) concerns associated
with current risk assessments.

       In order to reduce uncertainties in the risk assessment process, health effects research will
continue to focus on harmonization of risk assessment approaches and chemical mixtures. Work to
harmonize risk assessment approaches will yield a consistent set of principles and  guidelines  for
drawing inferences from scientific information, including the need for consistent application of all
pertinent information on toxicity, dosimetry, and mode of action in all risk assessments.  Research
on chemicals in mixtures will focus on determining the risks associated with exposure to chemicals
at the low end of the dose-response curve. It is particularly important to develop principles for how
chemicals interact at low doses and to determine the conditions under which they may respond in a
non-additive manner. The primary approach is to study chemicals having similar modes of action.
Also, principles derived from mixtures research will address issues associated with the assessment of
cumulative risk and aggregate exposure, as mandated by the FQPA.

       Research will continue also to develop and improve risk assessment methodologies, conduct
prototype risk assessments,  and develop  risk assessment guidelines  and databases.   More
specifically, results of research on biological mechanisms will be used to improve understanding of
and resolve uncertainties in dose-response assessments.                 :

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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 risk management strategies and guidance.

       In FY 2003, EPA's Children's Health Research Program, established in 1997 in response to
the heightened awareness and concern about the unique susceptibilities of infants and children, will
continue to  play a critical role in shaping how the Agency addresses children's health issues.
Children may be more susceptible than adults to adverse effects because of differences in how
chemicals are absorbed, metabolized, and stored in the body, resulting in higher doses over a longer
period of time and greater harm to key organs and organ systems. In addition to inherent differences
in susceptibility, children are often more vulnerable to toxic exposures because of their different
diets, proportionally higher food intake, and child-specific behaviors, such as playing on floors, that
result in greater contact with environmental contaminants.

       Much of the effort under the Children's Health Research Program in FY 2003 is based on the
EPA Strategy for Research on Environmental Risks to Children (in addition to the draft Asthma
Research Strategy), which provides direction for research in age-related exposures, physiology, and
biological responses that may result in increased 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.

       The Agency will also continue to address environmental-related childhood  disease via the
Children's Environmental Research Centers. The aim of these grants is to better understand the
causes of environmentally induced disease among children and to eventually decrease the prevalence
of childhood disease. Efforts will focus on childhood asthma and other respiratory diseases, 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.

       Health effects research in the area of susceptible subpopulations will develop the scientific
basis for understanding the  pharmacodynamic  and  pharmacokinetic  differences  between
subpopulations that could account for different sensitivity and susceptibility following exposure to
environmental chemicals.  Results from this research will be used to develop better risk assessment
methods for evaluating selected subpopulations that focus on the influence of life-stage, genetic
predisposition, and health status on responsiveness to chemical exposure.

       The  Agency  is participating in the National Children's Study (NCS) through a Federal
Interagency Committee with the National Institute for Child Health and Human Development
(NICHD), the Centers for Disease Control and Prevention (CDC), and other agencies, as mandated
in the Children's Health Act of 2000.  The NCS will enroll parents and children at or before birth
and follow them for a number of years, documenting developmental disorders and collecting data on

                                         VIII-22

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environmental exposures and other factors that could be responsible for adverse outcomes. In 2003,
EPA will continue to work on design and implementation of the NCS and to develop and pilot
methods for measuring exposure to environmental agents and adverse health outcomes.

       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 developed an Asthma
Research Strategy. Consistent with the priorities laid out in the Strategy, EPA will focus its efforts
on interactions between aldehyde exposure and allergic asthma, including extrapolation between rats
and humans, and asthma and exposure of children to fungi. EPA is also  developing methods and
protocols for asthma research, as part of the National Children's Study (NCS), to enable evaluation
of the role of environmental factors in the induction and exacerbation of asthma (and to assess the
effectiveness of interventions).

       The Agency will continue to support risk management research designed to assist schools in
their efforts to eliminate or minimize emissions and releases  of contaminants from products and
materials they use that contribute to asthma and other respiratory irritations. This research will
develop models and test procedures, and create market incentives for the manufacture and use of
products, including water-based cleaners, that result in improved indoor air quality. Research results
will provide the scientific basis to upgrade indoor air quality guidance to schools.

       EPA will also conduct research on the influence of genetic factors on responsiveness to
environmental chemicals.  An important scientific question in this area is whether genetic
differences are sufficient to influence risk assessment. In addition, the Agency will study whether
the presence of pre-existing diseases may alter the response to  environmental toxins. Data derived
from these studies will be used to  assess the possible increased risk of chemical exposure for
individuals with pre-existing diseases, such as asthma and other respiratory diseases.

Research to Enable Evaluation of Public Health Outcomes

       As part of its regulatory development process, the Agency often estimates the public health
benefits, such as reduced incidences of disease and extended life years, of various possible Agency
decisions. Estimating the  public health benefits of Agency decisions, or in a more general sense
evaluating public health outcomes from risk management actions, is most often prospective in
nature.  Generally, the Agency has  not prepared retrospective evaluations to assess whether the
intended benefits in protecting public health were realized once an Agency decision had been in
effect for a period of time.

       In FY  2003,  EPA  will begin the first in a  series of  solicitations  requesting research to
develop approaches for using human health and exposure data to evaluate the effectiveness of
environmental decision-making on public health.  Research will be conducted using case studies to
evaluate approaches for using health-related information to evaluate the public health outcomes of
regulatory decisions. The studies will test statistical and computational approaches and methods for
evaluating cost-benefit relationships.
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FY 2003 Change from the FY 2002 Enacted

Research
S&T
       (+$3,412,500) This increase supports the Agency's research initiative on aggregate and
       cumulative risks.  Research results will provide a focal point for Agency-wide strategic
       research planning and methods development; provide tools that can be applied to address key
       concerns that have arisen in settings where population-based human health risk assessment is
       the focus; and complement and build on EPA's human health research. This initiative has
       been specifically tailored to reduce uncertainty in this area and allow the Agency to address
       a broader array of issues than is currently possible. New research will  address temporal
       variation in exposures and its influence on health effects, methods for predicting the relative
       toxicity of mixture components, the development of biological markers that can quantify
       exposure, effects and susceptibility, and the use of the biological data and information on
       biological mechanisms and mode of action to assess cumulative risk.

       (+$2,450,000) Resources will be redirected within this objective to enhance the Agency's
       efforts in the area of computational toxicology.  EPA seeks to  strengthen further and
       integrate  its capabilities in the areas of (but  not limited to)  molecular  profiling and
       bioinformatics. The Agency's goal  is to advance its ability to assess and predict the human
       health and ecological risks from environmental exposures.

       (-$2,000,000) Resources will be redirected within this objective from efforts in human health
       in the areas of human health risk assessment and assessing exposure and risks from chemical
       mixtures. There are no  programmatic impacts.

       (+$500,000) Resources will be used to enhance EPA's efforts in evaluating the effectiveness
       of environmental decision-making on public health. Research will be conducted using case
       studies to evaluate approaches for using health related information to evaluate the public
       health outcomes of regulatory decisions. The studies will test statistical and computational
       approaches and methods for evaluating cost-benefit relationships.

       (+$360,900, +L9 FTE) Resources will be redirected within the Objective  to develop
       methods, data,  and measurement-derived models that estimate aggregate exposure and
       source-exposure-dose relationships for contaminant mixtures. Planned research related to
       Homeland Security will conclude in FY 2002.

       (-$360,900, -1.9 FTE) Planned research related to Homeland Security in the area of model
       development incorporating human activity patterns and measured or modeled distributions of
       exposure concentrations will conclude in FY 2002.  Resources will  be redirected  to
       aggregate and cumulative exposures and exposures to mixtures.
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•        (+$281,200,+1.5 FTE) This increase in resources will be used to coordinate EPA scientific
         participation in regulatory development with program offices on major rules.

•        (-$786,000)  This  FY 2003 reduction eliminates  funding for FY 2002  Congressionally-
         directed research.

•        (-$731,300) The FY 2003  Request is $731,300 below the 2002 Enacted  budget due to the
         Congressional Earmarks received during the appropriations process which are not included
         in the FY 2003 President's Request.

Annual Performance Goals and Measures
Research

Human Health Risk Assessment Research

In 2003   Develop, summarize, integrate, and demonstrate an initial set of tools (methods, measurements, models) so EPA can assess aggregate
             exposures and risks from environmental contaminants in multiple media and determine how to best minimize/eliminate human
             and environmental harm from these contaminants.

In 2002   Produce a framework with supporting models arid analyses to better link human exposure measurements and health effects outcomes
             and address complex, high priority risk issues including aggregate/cumulative risk and high to low dose extrapolation.

In 2001   EPA developed a draft research strategy on human health risk assessment.  Although publication has been delayed until FY 2002, the
             fundamentals of this strategy are being implemented into an analysis of data from the National Human Exposure Assessment
             Survey (NHEXAS).
Performance Measures:

Publish peer reviewed research strategy on human health risk
assessment.

NHEXAS: Begin implementation of Strategic Data Analysis
Plan.

Develop a prototype source-to-exposure-to-dose modeling
framework that enables the complex computation for human
exposure modeling.

Advance the human exposure and dose model by improving
the modules for dermal and dietary exposure.

External review draft report on framework for conducting
risk assessments for children as a sensitive subpopulation.

Report on the Contribution of Genetic Polymorphisms of
Metabolic Pathways to Susceptibility and Population
Variance.

Report on health effects associated with exposures to indoor
and outdoor pollutants using NHANES health effects data
and EPA monitoring data.

Provide access to human exposure data via the world wide
web to states, Regions, Program Offices, exposure modelers,
and other stakeholders for use in aggregate and cumulative
risk assessments.

Test and evaluate a framework for modeling aggregate
exposures from source through human exposure to human
dose.

Publish data and results from the National Human Exposure
FY 2001
 Actual
FY 2002
Enacted
FY 2003
Request
                                                   resrch strategy
                                                   strategic plan
                                                   model assessmen
                                                   modules
                                                   framework
                                                   report
                                                   report
                                                   data base
                                                   model
                                                   report
                                                    VIII-25

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Performance Measures:                               FY200I         FY2002         FY2003
                                                Actual          Enacted         Request
Analysis Survey (NHEXAS) that will help characterize
exposures to key pollutants and summarize human activities
that impact exposure.
Analyze NHEXAS data for .use in updating the Exposure                                                1      analysis
Factors Handbook.
Baseline:  Currently, risk assessments often focuses on a small component of the total exposure and risk that people face. Aggregate exposure
           and risk expands that consideration to include all the pathways and routes by which people come into contact with pollutants: it
           is a first step in understanding the cumulative total of peoples exposures and risks. A variety of tools (measuremnt and analysis
           methods, measurement studies and data, and human exposure/risk models) are currently under development to allow estimation
           of aggregate exposures and risks. In FY03, research will provide:  improved information on sources of exposure; analysis of
           actual aggregate exposures of people in the U.S. as observed in probabilistic exposure measurement studies; development and
           demonstration of models for describing the many ways pollutants move from sources to.exposures to human dose; and the
           gathering together and publication of information and techniques needed to assess aggregate exposures and risk for use by the
           scientific community, risk assessors, and the public. Providing tools to assess aggregate exposure and risk is an initial step in
           understanding cumulative exposures and risks, and helping us move to more outcome-oriented measures of Agency actions to
           protect human health.

Coordination with Other Federal Agencies

Research

        Several Federal agencies sponsor research on variability and susceptibility in risks from
exposure to environmental contaminants.   EPA has collaborated with the National Institute" of
Environmental Health Sciences  (NIEHS)  in establishing 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.

        EPA is participating with the Centers for Disease Control and Prevention (CDC), through its
National Center for Health Statistics (NCHS), in the National Health and Nutrition  Examination
Survey (NHANES)-4.  NHANES-4 is a national population-based survey and includes data (i.e.,
children's exposure to pesticides and other environmental contaminants)  on potentially sensitive
subpopulations such  as children and the elderly.

        The Nationallnstitute of Child Health and Human Development (NICHD) is the lead agency
for conducting the National  Children's Study (NCS) of environmental influences on children's
health and development. EPA serves as one of the lead agencies within a consortium of Federal
agencies that are planning, developing and implementing the NCS.

        The Agency continues to work on interagency task forces with a number of Federal agencies,
- including the National Institute for Occupational  Safety and Health (NIOSH), NIEHS, and Food
and Drug Administration (FDA) - in developing health risk assessment guidelines (e.g., Carcinogen
Risk Assessment Guidelines, Developmental Toxicity Guidelines, Exposure Assessment Guidelines)
and has maintained interagency agreements with several Federal agencies (e.g., NIEHS) to support
the Children Environmental Research Centers.

Statutory Authority

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Research

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)
Superftmd Amendments Reauthorization Act (SARA)
Food Quality Protection Act (FQPA)
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                   Env. Problems

Objective: Enhance Capabilities to Respond to Future Environmental Developments.

      Enhance EPA's capabilities to anticipate, understand, and respond to future environmental
developments; conduct research in areas that combine human health and ecological considerations;
and enhance the Agency's capacity to evaluate the economic costs and benefits and other social
impacts of environmental policies.

                                Resource Summary
                                (Dollars in Thousands)

Enhance Capabilities to Respond to Future
Environmental Developments.
Environmental Program & Management
Science & Technology
Total Workyears .

FY2001
Actuals
$48,626,6
$6,801.4
$41,825.2
159.6

FY 2002
Enacted
$64,249.5
$10,147.8
$54,101.7
152.6

FY2003
Request
$50,965.8
$10,008.5
$40,957.3
152.6

FY 2003 Req.
v. FY 2002 Ena.
($13,283.7)
($139.3)
($13,144.4)
0.0

                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Congressional^ Mandated Projects
Endocrine Disrupter Research
Facilities Infrastructure and Operations
Homeland Security
Management Services and Stewardship
Regulatory Development
Research to Support Emerging Issues
STAR Fellowships Program
FY 2001
Enacted
$133.9
$4,377.8
$12,482.5
$371.4
$0.0
$426.6
$6,857.6
$23,365.6
$9,704.3
FY 2002
Enacted
$0.0
$3,753.8
$10,353.1
$2,267.8
$1,587.6
$327.7
$7,552.3
$28.658.5
$9,748.7
FY 2003
Request
$0.0
$0.0
$11,806.5
$2,177.2
$0.0
$299.1
$7,532.2
$29,150.8
$0.0
FY 2003 Req.
y. FY 2002 Ena.
$0.0
($3,753.8)
$1,453.4
($90.6)
($1,587.6)
($28.6)
($20.1)
$492.3
($9,748.7)
 FY 2003 Request
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       Research conducted under this objective endeavors to develop common methodologies for
combined human health and  ecological risk  assessments  and reliable approaches  for  risk
management, and to conduct research in social science, environmental decision making, economic
calculation, and estimation  of  environmental costs, risks and benefits. This research provides
decision-makers at all levels with the integrated view of risk and risk reduction benefits and costs
needed to make sound decisions.

Endocrine Disrupters

       Evidence has been accumulating that indicates humans and animals, both domestic and wild,
have suffered  adverse  health  consequences  resulting from exposure to endocrine disrupting
chemicals (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
Disrupters" (www.epa.gov/ORD/WebPubs/finan  in  1998.  Endocrine disrupters research  will
continue to focus on the priorities established in  the 1998 plan by developing  tools to identify
hazards, characterize the extent of human and wildlife exposures to known and suspected EDCs, and
manage risks  from exposure  to EDCs,   This research focuses  on:  1) developing  a better
understanding of EDCs; 2) determining the extent of the problem in human and wildlife populations;
and 3) supporting EPA's screening and testing program mandated under the Food Quality Protection
Act of 1996 and the Safe Drinking Water Act Amendments of 1996. In FY 2003, EPA will continue
to: develop state-of-the-art methods and conduct studies in laboratory species, ecological systems,
and human populations  with suspected contamination or exposure; develop physiologically-based
pharmacokinetic (PBPK) and biologically-based dose-response (BBDR) models; identify major
sources of EDCs entering  the environment; and develop  tools for risk assessment and  risk
management.

       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 of adverse  effects in humans and wildlife caused by exposure  to EDCs. Efforts
in this area will focus on: 1) developing and standardizing protocols for the Agency's screening and
testing program to identify endocrine disrupting chemicals; 2) determining the unique relationship
between developmental exposures (e.g., prenatal and early postnatal) and the onset and severity of
adverse health  outcomes later in life (adulthood); and 3) determining the degree to which the effects
of EDCs can be extrapolated across species.

       Exposure research is needed to characterize the key factors contributing to how, when, and
where EDC exposures occur and their magnitude.  Efforts will focus on: 1) developing analytical
and measurement tools for characterizing and quantifying EDC exposures; and 2) planning and
conducting exposure studies to better define the spatial and temporal variability of real-world EDC
exposures.
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       Assessment work will result in the development of an analytical framework and guidelines
for evaluating health and ecological impacts of reported endocrine disrupters. To achieve this, risk
assessment research will: 1) identify key risk assessment issues for evaluating endocrine disrupters;
2) identify methods to adequately evaluate data on the effects of EDCs on human health and the
environment; 3) develop a framework that supports proper assessment of EDCs; and 4) develop and
document guidance, incorporating this framework, for assessing EDCs.

       Risk management research will identify current EDC releases that can be mitigated or
eliminated by existing risk management tools and will develop new tools to manage current and
future EDC risks.  Initial efforts will focus on the following sources of exposure: 1) combustion, 2)
confined animal feeding operations, 3) drinking water treatment, 4) contaminated sediments, and 5)
waste water treatment.

Pharmaceutical and Personal Care Products

       Pharmaceutical and personal  care products (PPCPs) are used throughout the  world in
quantities on a par with agricultural chemicals, and 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. In contrast to agricultural chemicals, most
of these products are disposed of, or discharged, into the environment on a continual  basis via
domestic/industrial sewage systems and wet-weather runoff. The occurrence, fate, and effects (both
ecological and human) of PPCPs in the environment are poorly defined. Research will focus on:  1)
 framing initial  risk assessments that will help chart the focus of future work;  2)  developing
requisite analytical methods for target PPCPs; 3) initiating small-scale proof-of-concept and early
warning environmental monitoring; 4) promoting scientific dialogue at national and international
levels', 5) and communicating knowledge to the public.

Mercury

       Mercury is released from a variety of sources, exhibits complicated biogeochemistry, and
proceeds via several different pathways to humans and wildlife. After release, mercury undergoes
complicated transformations and speciation changes 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 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 environmental concern.

       Since the  developing nervous system is more vulnerable to  mercury toxicity, children
exposed to methylmercury through their mother's consumption offish, and individuals who eat large
amounts offish from local waters, can be particularly at risk of adverse effects. The  presence of
mercury in freshwater fish higher in the food chain is the most frequent basis for fish advisories.
Almost 79 percent of all advisories in the United States are at  least  partly due  to mercury
contamination in fish and shellfish. As of December 2000, mercury was the chemical contaminant
responsible, at least in part, for the issuance of 2,242 fish consumption advisories by 41 states, in one

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or more water bodies; 1.3 states have issued statewide mercury advisories.

       Several  research issues will continue to be emphasized in FY 2003,  including:  1)
measurement methods, continuous emissions monitoring, and control technologies for combustion
sources of mercury; 2) source characterization and cataloguing from non-combustion sources; 3)
atmospheric',  aquatic,  and  terrestrial  transport, transformation,  and  fate  of mercury;  4)
ecological/environmental effects assessment of mercury; 5) mercury risk communication strategies
(especially  to sensitive  subpopulations);  6) disposal of excess mercury stocks and improved
management  of mercury wastes;  7) studies of options for controlling mercury  releases from
contaminated media (e.g., sediments and landfills); and 8) studies of performance, cost, and residue
of mercury control technologies, including methods for reducing emissions from coal fire utility
boilers. Research in FY 2003 will provide data on measurement methods and control technology
performance, cost, and residues that can be used to make informed choices on reducing the risks
associated with mercury and methylmercury. EPA will place increased emphasis on research related
to atmospheric chemistry, transport modeling and ecological assessment. FY 2003 research will also
focus on the atmospheric transport,'transformation, and fate from source to deposition point. Studies
will focus on the Arctic depletion event and the mechanisms that transform elemental mercury to the
reactive gaseous form in the upper atmosphere. Additional research will support the development of
a watershed biogeochemical model for aquatic exposures in response to atmospheric deposition and
within-watershed sources. This model will be used to evaluate the impacts of internal cycling versus
long-range transport and the responses offish concentrations to mitigation measures, and will have
potential applications for development of mercury total maximum daily loads (TMDLs).

Socio-Economic Research

       Effective accomplishment of EPA's mission depends on understanding not only the physical
and biological effects of environmental changes, but also the behavioral causes and consequences of
those changes. The focus of socio-economic research at EPA is to develop a better basis for making
decisions using  sound assessments of human behavior that affect environmental outcomes. Priority
socio-economic research identified by EPA economists and outside experts includes: ecosystem and
human health benefits valuation; decision-making processes that incorporate non-market benefits;
value of information; corporate environmental behavior and the effectiveness  of government
interventions; and effective group or community decision-making.

       Research conducted in FY 2003 will enhance environmental decision-making by improving
the understanding of how people value the environment, and will focus on difficult valuation issues
of  critical  concern to  environmental decision makers  as they evaluate the justification  for
environmental policy initiatives.  This is particularly important to regulatory programs that must
conduct cost-benefit analyses. Ecosystem valuation is one of the top research priorities for Agency
rule development due to extensive gaps in the information we have about biodiversity, habitat,
wildlife, and different ecosystem states.  Research on market mechanisms and incentives will
support investigations that explore the conditions under which financial and other performance
incentives will achieve environmental objectives (e.g., pollution reduction, habitat preservation) at a
lower cost or more effectively than traditional regulatory approaches. This research will also help

                                         VIII-31

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Federal and state agencies understand how regulated  entities respond to the incentives for
environmental compliance offered through enforcement, compliance assistance, and information and
voluntary mechanisms.

Exploratory Grants and Minority Programs

       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.

       In FY 2003, the Exploratory Grants research program will publish an annual  general
solicitation to  promote research in  areas where  significant gaps in 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, and  nanotechnology can be addressed  under  the Exploratory Grants program. The
proposals are competitively reviewed  by panels  of 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 the basis for more targeted, applied
environmental research programs.

       EPA will also direct special grant solicitations to support research at Minority Institutions.
This program specifically assists minority institutions in establishing and supporting environmental
research activities that would build capacity to assess and solve environmental problems. A broad
range of research in risk assessment and risk management will be supported at these institutions.

Improve Economic Information and Methods

       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 regulatory and policy analyses.
 In 2003, the Agency will invest in new economic research and analyses to improve measures of the
benefits and costs of EPA programs.  EPA will conduct economic analyses of emerging issues and
provide economic analyses to fill key gaps in the Agency's ability to quantify the benefits of
environmental  regulations. 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  research and policy workshops, bringing economists together to  explore
important topics, such as 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.  Also, EPA and the National Science Foundation will
continue to support a series of new economic research solicitations directed at such priorities as

                                         VIII-32

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valuation of health benefits, market-based mechanisms and economic incentives, and corporate
environmental performance and the effectiveness of government intervention.

FY 2003 Change from FY 2002 Enacted

S&T

•      (+$1,152,700) This represents a realignment of Minority Programs from the Superfund
       appropriation (in Objective 5.1) into the Science and Technology appropriation (in Objective
       8.3).  This will enhance the program by allowing for a broader scope of work to be done.
       The program  specifically assists minority  institutions  in  establishing  and supporting
       environmental research activities that will build capacity to assess and solve environmental
       problems. A broad range of research issues will be supported at these institutions.

•      (+$440,000, + 4 FTE) This represents an increase in workyears to the EDCs program. These
       resources will focus on computational toxicology, specifically techniques of molecular
       profiling as the foundation for determining genes responsible  for specific mechanisms
       EDCs' toxicity.

*      (-$9,700,000, -1 FTE) Funding for EPA's STAR Fellowship Program was eliminated in FY
       2003 as part of a larger effort to increase environmental science education programs at the
       National Science Foundation.  We will finish the commitment to fellowships awarded in
       previous years. However, fellowships that support minority academic institutions will
       continue.

•      (-$3,753,800)  The FY 2003 Request is $3,753,800 below the 2002 Enacted budget due to
       the Congressional earmarks received during  the  appropriations  process which  are not
       included in the 2003 President's Request.

•      (-$ 1,440,700, -2 FTE) This reduction reflects funding provided in the FY 2002 Emergency
       Supplemental  Appropriation  used to  perform research to enhance  understanding  of
       biological agents and the ability to mitigate and prevent harm caused by these agents.
Annual Performance Goals and Measures

Research
Mercury Research
In 2003  Support development of regulations on mercury emissions from coal-fired utility boilers by producing data on measurement methods
           and control technology performance, cost, and residues so that EPA can effectively reduce human health and environmental risk
           from mercury.
In 2002  Provide 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  EPA developed a new peer-reviewed and consensus IRIS entry for methylmercury, including a reference dose (RfD). The results of
           bench and pilot testing aimed at managing mercury risks from coal-fired utility .boilers was delayed until FY 2002.
Performance Measures:                              FY2001          FY 2002      "  FY2003

                                           VIII-33

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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.

Report on the performance/cost of reducing mercury
emissions taking into account coal properties.combustion
conditions, flue gas cleaning  technologies and other air
pollution control systems.
                                               Actual
30-Sep-2GGl
              Enacted
Request
                                           publication
              recommendations
                                           report
                                      1     report
Baseline: EPAs 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.
Coordination with Other Agencies

Research

        The broad nature of the EDCs issue necessitates a coordinated effort on both the national and
international levels. EPA has shown extensive leadership at both levels - chairing the Committee on
Environment and Natural Resources (CENR) interagency working group and chairing a Steering
Group on Endocrine Disrupters under the auspices of the World Health Organization's International
Program on Chemical Safety (IPC/WHO) and the Organization for Economic Cooperation and
Development (OECD).   Due to the complex nature of the  uncertainties posed by endocrine
disrupting chemicals, the overlapping concerns of Federal agencies, and the resource constraints on
the Federal budget, close coordination and cooperation among Federal agencies are essential to the
resolution of critical  research  questions.   While the CENR provides the  umbrella  for this
coordination, individual agencies are responsible for the development of their own  independent
research plans. Under EPA's leadership, an inventory of Federal research on endocrine disruption
has been developed and is used to  evaluate Federal efforts, identify research gaps and establish
priorities, and clarify governmental roles and responsibilities (www.epa.gov/endQcrineL

        Working with  other nations, EPA has expanded the U.S.  Federal inventory to include
projects from Canada, Japan, and Europe and has turned it into a Global Endocrine Disrupters
Research Inventory with close to 800 projects. The joint IPC/WHO - OECD Steering Group on
Endocrine  Disrupters is developing  a "Global  State-of-the-Science  Review,"  scheduled for
completion in calendar year 2002. Both the inventory and the international assessment result from
recommendations made at the 1997  G-8 Environmental Ministers' Meeting. In FY 2003, 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.
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       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, universities, and states, including
California EPA, has worked to identify and control human exposure to methylmercury. EPA has
also been working with the Department of Energy and the U.S. Geological Survey to address risk
management issues associated with mercury emissions from utilities as well as issues on the
ecological effects of mercury and environmental processes effecting the fate and behavior of
mercury,

       EPA will continue to support jointly sponsored economic workshops with other regulatory
agencies, such as the Food and Drug 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-sponsored  economic research, facilitating information
exchanges  among  academic and  Federal regulatory agency  representatives.  EPA  is also
coordinating its research strategy with other federal agencies interested in environmental economics
and social science research including the Department of Justice (DOJ) and the National Science
Foundation (NSF).

Statutory Authorities

Research •

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  (15 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)
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
National Environmental Policy Act (NEPA)
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                         Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                  Env. Problems

Objective: 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)

Improve Environmental Systems
Management.
Environmental Program & Management
Hazardous Substance Superfun-d
Science & Technology
Total Workyears
FY 2001
Actuals
$59,130.3
$6,310.6
$0.0
$52,819.7
164.5
FY 2002
Enacted
$57,757.0
$5,648.9
$0.0
$52.108.1
148.2
FY2003
Request
$52,274.1
$2,706.1
$2,468.0
$47,100.0
146.6
FY 2003 Req.
v. FY 2002 Ena.
($5,482.9)
($2,942.8)
$2,468.0
($5,008.1)
-1.6
                                   Key Program
                               (Dollars in Thousands)

Administrative Services
Congressionally Mandated Projects
Environmental Technology Verification
(ETV)
Facilities Infrastructure and Operations
Homeland Security
Legal Services
Management Services and Stewardship
Research to Support Pollution Prevention
FY2001
Enacted
$92.3
$8,705.0
$6,294.0
$3,204.5
$0.0
$237.1
$872.7
$39,156.5
FY2002
Enacted
$0.0
$13.512.1
$3,607.7
$2,290.0
$40.4
$251.9
$382.0
$37,672.9
FY2003
Request
$0.0
$0.0
$3,617.6
$2,084.0
$1,875.0
$270.7
$351.4
$44,075.4
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($13,512.1)
$9.9
($206.0)
$1,834.6
$18.8
($30.6)
$6,402.5
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FY 2003 Request

       In FY 2003, the Agency will continue to move from one-dimensional solutions involving a
single  medium/single pollutant to an integrated, systems-based approach  stressing pollution
prevention. This approach more closely fits with the Agency's complex challenge of responding to
the multiple, interactive stressors that threaten both human and environmental health, enables a more
thorough assessment of human health and environmental risks, and supports a more complete set of
management responses to those risks.  EPA will accomplish its holistic approach to pollution
prevention through research on pollution prevention tools and technologies,  green chemistry,
environmental systems management, and environmental technology verification, and through the
National Environmental Technology Competition.

       This objective focuses on the development of tools and methodologies to assist decision-
makers in choosing the most preferred pollution prevention options. Research in  FY 2003 will: (1)
provide methods and models for management and prevention of source-specific emissions that
threaten public health and ecological systems; (2) provide methods and tools  to compare risks
associated with different treatment technologies and management options; (3) develop more flexible
and useful life cycle assessment methods; (4) incorporate life cycle and cost engineering concepts
into industrial process simulators; (5) improve the ability to measure and objectively evaluate the
environmental and human health impacts of risk management options; and (6) advance impact
assessment theories, methodologies, and tools, including the capability to address such non-chemical
impacts as resource depletion, habitat alteration, and decreased biodiversity. This research will also
accelerate the adoption and incorporation of pollution prevention by  developing, testing, and
demonstrating technologies and approaches applicable across economic  sectors.  In a broader
context, pollution prevention tools and technologies research will continue expanding beyond its
traditional focus on industrial sectors to other sectors (e.g., energy, agriculture) and ecosystems.

       EPA's Small  Business Innovation Research (SBIR) Program, which is  funded through a
2.5% set-aside of the Agency's extramural research and development budget,  makes awards to
small, high-tech firms to help develop and move new environmental tools and technologies from
"proof of concept" to commercialization. The SBIR program targets research to prevent pollution,
reduce water and air  pollution, manage  solid and hazardous wastes, and improve environmental
monitoring - in each case addressing priorities in the Agency's Strategic Plan. Recognizing that the
expense of carrying out research and development programs is often beyond the means of small
businesses, SBIR participants receive both financial and technical assistance in developing and
commercializing technologies according to the anticipated market. The technologies developed
under SBIR help the regulated community meet environmental requirements in a more cost-effective
manner (e.g., small water systems meet the new drinking water standard for arsenic); enable industry
to reduce the use of toxic and hazardous materials in production processes and in recovering and
recycling materials for reuse; and provide new approaches to designing more environmentally
friendly products.

       Green chemistry and clean technologies, fundamental approaches to preventing pollution at
the source, involve the design of chemicals and alternative chemical syntheses that do not use toxic

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feedstock, reagents, or solvents, and do not produce toxic by-products or co-products. Green
chemistry research will provide generic guidance to industry, particularly small and medium-sized
companies, for selecting cleaner reaction pathways for conducting syntheses of a wide variety of
organic products. Green chemistry  research will  also contribute to the development  of  safer
commercial substances and  environmentally friendly chemical  syntheses.   Research on clean
technologies will be focused on designing, developing and verifying alternative materials, products,
and processes that minimize use, emission, and discharge of toxic chemicals in mining, metal
finishing, building/construction, and chemical sectors. This type  of research is also conducted in
partnership  with  the National  Science  Foundation (NSF) through EPA's Technology for  a
Sustainable Environment (TSE) program, which supports the development of cutting-edge pollution
prevention technology through chemistry, chemical engineering, bioengineering, industrial ecology,
and environmentally benign manufacturing tools. Research performed under the banner of industrial
ecology will generate engineering or economic approaches to prevent or reduce waste from discrete
and continuous industrial manufacturing activities. Efforts will explore equipment and technology
modifications, reformulation of products,  substitution of alternative materials, and in-process
changes in order to reduce harmful emissions of volatile organic  compounds (VOCs), global
warming compounds, and persistent bioaccumulative toxics (PBTs).

       A critical enabler of green chemistry and clean technologies is the development of technical
tools that facilitate the development of technologies. The development of life cycle assessment
(LCA) tools, specifically the simplified tools that can be afforded  by small businesses, is a critical
need to be addressed in product and process design. Other tools in this category are computer-based
methods for assessing environmental impacts of products and processes, for designing cleaner
processes, designing non-toxic solvents and solvent mixtures, and constructing a web-based LCA
data portal.  Research in green chemistry and clean technologies will be conducted in partnership
with program and regional offices and industry.

       The  Agency  will additionally support prevention,  minimization, and,  when possible,
elimination of PBTs by improving methods for their identification  and testing.  Research will focus
on the following areas: (1) dioxins/furans  and polychlorinated biphenyls (PCBs); (2) persistent
organic pollutants; (3) mercury B from source characterization to retirement of mercury stocks; and
(4) the "development of a national routine PBT monitoring strategy.  By concentrating on these areas,
EPA will advance the understanding of exposure, assessment, and management of PBTs while
simultaneously working toward PBT prevention.

       Another facet of this objective, environmental systems management research, endeavors to
integrate environmental  management with economic development and social equity, while
simultaneously expanding environmental stewardship by industries, governments, and citizens.
FY 2003 research in this area will explore the principles governing sustainable  systems; the
integration of social, economic, and environmental objectives in environmental assessment and
management for communities, watersheds, and eco-regions; and the development of principles for
the sustainable use of biotechnological systems. All these research efforts have been fashioned to
include partners in EPA regions and several environmental institutes so that valuable inputs from
potential users can be incorporated in the initial phases of this research.

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       Another component of research under this objective, the Environmental  Technology
Verification (ETV) program, addresses the difficulty of garnering financial support for and public
acceptance of environmental technologies.  ETV is a voluntary, market-grounded verification
program for commercial-ready technologies, with over 1,000 stakeholders who represent all points
of view within environmental areas. The goal of ETV is to verify the performance characteristics of
private-sector-developed technologies so that purchasers,  users, and permit writers have  the
information they need to make environmentally-beneficial decisions. The program is designed so
that, as the value of ETV verification becomes more broadly appreciated, technology developers will
be required to cover an increasing share of the verification costs.

       By the end of FY 2003, the ETV program will have delivered more than 150 test plans and
protocols, making them available to the entire research and testing community, and will have
verified over 200 .technologies,  making data on their performance available  for public  use.
Technology verifications during F Y 2003 will focus on advanced monitoring; air pollution control;
greenhouse gas abatement; drinking water systems; and water protection. EPA will continue to
enhance program outreach efforts through the ETV website,  national conferences  and workshops,
and state permit writer training.

       EPA will also facilitate the adoption of innovative environmental technologies by the public
and private sectors through the final  component of this objective, the  National Environmental
Technology Competition  (NETC). This new effort for FY 2003  addresses both the need for
innovative technologies to solve environmental problems and the reluctance of potential buyers to
assume the economic risks of using  an unproven technology.  Through NETC, EPA and  its
stakeholders will identify and prioritize environmental problems that can benefit from targeted, cost-
effective technological solutions.  EPA will develop competitive solicitations for technologies in a
specified problem area (e.g., arsenic removal) and an external peer review panel will select the most
promising technologies. In an effort to enhance the marketability and use of these innovative
technologies,  EPA will offer the  winning technologies honorary  awards, recognition, and other
support to assist in commercialization.

       In FY 2003, an area for technology solicitations will be arsenic removal from drinking water.
This work will be an important source of EPA's commitment  for research and development of more
cost-effective treatment technologies to help small community water systems meet the new arsenic
drinking water standard.  Other potential areas for technology solicitations include: models to
support effluent trading plans for total maximum daily loads  (TMDLs); water  and wastewater
infrastructure repair and replacement; reduction of greenhouse gas emissions;  and continuous
monitoring of mercury in flue gases.   Both EPA  and states will  encourage the use of NETC
technologies  by disseminating  information and by using the technologies as performance
benchmarks in regulations or enforcement agreements, or as  a basis for cap-and-trade approaches.
NETC will lead to better understanding between  EPA and the industrial  sector of areas of
environmental concern, to the alignment of future environmental requirements with technology
performance capabilities, to an increase in the quantity and quality of cost-effective options for the
mitigation and prevention of environmental problems, and ultimately to a cleaner, safer environment

                                        VIII-39

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through a new level of environmental  stewardship by industry and government.


Annual Performance Goals and Measures

Research

Pollution Prevention Tools arid 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   EPA integrated a waste reduction algorithm with costing software and a chemical process simulation package, and completed a
               decision support tool for life cycle analysis of municipal solid waste to enhance a preventive approach to risk management and
               the use of pollution prevention options.

Performance Measures:                                         FY2001             FY 2002             FY2003
                                                               Actual              Enacted             Request
Integrate the process change/waste reduction algorithm                         1         •                                     package
(WAR) with costing software (Icarus) and a chemical process
simulation package (Aspen).

Complete a decision support tool for life cycle analysis of                      1                                              tool & report
municipal solid waste management options.

Publish a peer-reviewed protocol for conducting Risk                          0                                              protocol
Management Evaluations.

Complete grant on development of tool for predicting                          0                                              grant report
biodegradability of compounds.

Enhance the Waste Reduction Algorithm environmental                                            1                          method
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                                        1                          protocol
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                                             1                          risk tool
finishing sector in evaluating exposure and inhalation health
risks to workers and residents living near metal finishing
facilities.
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 wi'dely 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 2003   Develop 10 testing protocols and complete 40 technology verifications for a eumulative Environmental Technology Verification
               (ETV) program total of 230 to aid industry, states, and consumers in choosing effective technologies to protect the public and
               environment from high risk pollutants.

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 2001   EPA developed, evaluated,  and delivered technologies and aproaches that eliminate, minimize, or control high risk pollutants from
              • multiple sectors.  Delivery of the evaluative report on the Environmental Technology Verification (ETV) pilot program is
               delayed until FY 2002.


                                                           VIII-40

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Performance Measures:

Deliver a Report to Congress on the status and effectiveness
of the Environmental Technology Verification (ETV)
Program during its first five years.

Complete 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.

Complete 20 stakeholder approved and peer-reviewed test
protocols in all environmental technology categories under
ETV, and provide them to testing organizations world-wide.

Verify and provide information to States, technology
purchasers, and the public on 40 air, water, pollution
prevention and monitoring technologies for an ETV
programmatic total of 230 verifications.

Complete an additional 10 stakeholder approved and peer-
reviewed test protocols in all environmental technology
categories under ETV, and provide them to testing
organizations world-wide.
FY2001
 Actual
FY 2002
Enacted
FY2003
Request
                          20
                                  report


                                  report


                                  report


                                  grant report

                                  protocols


                          40      verifications
                                            10
                                  protocols
Baseline:  Actual environmental risk reduction is directly related to performance and effectiveness of environmental technologies purchased and
             used. Private sector technology developers produce almost all 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. In FY 02, the first year of operating, after the pilot period ended in FY 01, the Environmental Technology
             Verification (ETV) Program will have delivered in FY 02 more than 20 additional protocols, making them available to the entire
             research and testing community, and will have verified approximately  30 additional technologies for a programmatic total of
             180, making data on their performance available for public use as well.

Verification and Validation of  Performance Measures

FY 2003 Congressional Performance Measure (PM): Verify and provide information to states,
technology purchasers, and the public on 40 air, water, pollution prevention, and monitoring
technologies for an ETV programmatic total of 230 verifications.

Performance Database: Program output, no internal tracking system

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Reviews: Technology verifications

Data Limitations: N/A
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New/Improved Data or Systems: N/A


FY 2003 Congressional Performance Measure (PM): Complete an additional 10 stakeholder
approved and peer-reviewed test protocols in all environmental technology categories under
ETV, and provide them to testing organizations world-wide.

Performance Database: Program outputs, no internal tracking system

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Reviews: Test protocols
Data Limitations: N/A

New/Improved Data or Systems: N/A


FY 2003 Change from FY 2002

 S&T

•      (+$9,750,000)  This  increase  represents  a new  effort  for FY 2003, the  National
       Environmental Technology Competition (NETC), which will  foster the adoption of cost-
       effective technologies for environmental priority areas by the public and private sectors
       through a competitive award process. NETC will lead to better understanding between EPA
       and  the industrial sector of areas of environmental concern, to the alignment  of future
       environmental requirements with technology performance capabilities, and to an increase in
       the quantity and quality of cost-effective options for the mitigation and prevention  of
       environmental problems. Through coordination with states, Program and Regional Offices,
       and other stakeholders, EPA will prioritize areas of environmental concern that can benefit
       from the application of innovative technologies. One of the areas planned for competitive
       solicitations will be treatment technologies for arsenic in small community drinking water
       systems. Another potential area for competitive solicitations is models to support effluent
       trading plans for total maximum daily loads (TMDLs).

•      (-$9,610,700) The FY 2003 Request does not include $9,610,700 contained in the
       FY 2002 Enacted budget level due to Congressional earmarks from the appropriations
       process not carried forward in the FY 2003 President's Request.

•      (-$3,000,000) This FY 2003 reduction eliminated funding for FY  2002 Congressionally-
       directed work under the National Technology Transfer Center (NTTC).
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EPM
       (-$2,030,100) This reduction relates to the change in resources set aside for the Small
       Business Innovative Research (SBIR) Program from its FY2002 levels, and is primarily due
       to the fact that FY2002 Congressional earmarks are not included in the FY2003 Presidents
       Request.
•      (-$2,535,100) The FY 2003 Request is $2,535,100 below the FY 2002 Enacted budget level
       due to Congressional earmarks received during the FY 2002 appropriations process that are
       not included in the FY 2003 Presidents Request.

•      (-$ 189,900) This reduction relates to the change in resources set aside for the Small Business
       Innovative Research (SBIR) Program from its FY 2002 levels, and is primarily due to the
       fact that FY 2002 Congressional earmarks are not included in the FY 2003 Presidents
       Request.

Superfund

•      (+$ 1,875,000) This increase relates to resources set aside for the Small Business Innovative
       Research (SBIR) Program and allocated in  FY 2003 for Homeland  Security building
       decontamination technology development by small businesses.

Coordination with Other Agencies

Research

       Pollution prevention, cost benefit analyses, and environmental technology verification are all
research  areas  that lend  themselves to and benefit  from engagement with other Federal
organizations.

       In partnership with  the National Science Foundation (NSF), EPA's Technology  for a
Sustainable Environment  (TSE)' program supports the development of cutting-edge pollution
prevention technology through  chemistry,  chemical engineering,  industrial ecology,  and
manufacturing. The EPA/NSF partnership in TSE is entering its seventh year of supporting research
to prevent pollution at its source.

       Under the Persistent Bioaccumulative Toxics (PBT) program, EPA has been working with
the U.S.  Geological  Survey (USGS), the National  Oceanic and Atmospheric Administration
(NOAA), and the Centers for Disease Control and Prevention (CDC) to develop a national routine
PBT monitoring strategy.  Through the integration  of existing monitoring programs, this new
strategy will ultimately meet the mutual monitoring objectives of EPA and other Federal agencies.

       EPA has  contributed  projects to  the  Department  of  Defense's (DOD's)  Strategic
Environmental Research and Development  Program (SERDP), with particular emphasis on the

                                        VIII-43

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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 (USD A) regarding life cycle analysis and a preventive approach for the
development and advancement of biologically and genetically altered products. Additionally, EPA
and DOD's U.S. Army Corps of Engineers will continue addressing the costs and benefits associated
with the implementation of new engineering projects and technologies in order to understand and
respond to the economic impacts of environmental innovation.

       With respect to the Environmental Technology Verification (ETV) program, EPA has co-
funded efforts to verify the performance of site characterization and monitoring devices with the
Department of Energy's (DOE) Sandia and Oak Ridge National Laboratories. EPA  signed a
Memorandum of Agreement with DOD to verify jointly environmental technologies that are of
mutual interest to  EPA  and DOD's Environmental Security Technology Certification  Program
(ESTCP). In June 2001,  the U.S. Coast Guard (USCG) and  EPA signed a Memorandum of
Agreement to verify jointly the performance of innovative environmental technologies to control
ballast water discharges that may contain invasive species and that have had significant and adverse
economical and ecological impacts.

Statutory Authorities

Research

Clean Air Act
Safe Drinking Water Act
Clean Water Act
Toxic Substances Control Act
Federal Insecticide, Fungicide, and Rodenticide Act
Resource Conservation and Recovery Act
Superfund Amendments Reauthorization Act
Clean Air Act Amendments of 1990
Pollution Prevention Act of 1990
Small Business Innovation Development Act
                                       VIII-44

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                           Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                    Env. Problems

Objective: 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
Total Workyears
FY2001
Actuals
$9,539.9
$9,539.9
1.6.1
FY 2002
Enacted
$8,672.7
$8,672.7
1.6.7
FY 2003
Request
$9,058.4
$9,058.4
18.0
FY 2003 Req.
y. FY 2002 Ena.
$385.7
$385.7
1.3
                                    Key Program
                                 (Dollars in Thousands)

Congressionally Mandated Projects
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
Regional Geographic Program
Regional Management

FY 2001
Enacted
$698.5
$0.0
$42.9
$164.1
$8,192.3
$506.4

FY 2002
Enacted
$700.0
$21.5.6
$47.3
$100.6
$7,609.2
$0.0

FY 2003
Request
$0.0
$241.9
$53.3
$112.1
$8,651.1
$0.0

FY 2003 Req.
v. FY 2002 Ena.
($700.0)
$26.3
$6.0
$11.5
$1,041.9
$0.0

                                        VIII-45

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FY 2003 Request

       The Regional Geographic Initiatives (RGI) program is a holistic approach to long-term,
cross-programmatic environmental enhancement that has proved successful in repeated applications.

       Since 1994, the RGI program has funded hundreds of projects, including projects in all 50
states, in Tribal lands, and in U.S. territories and possessions.  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 those with states, businesses and local communities.  The RGI
program is different from other, more traditional EPA programs in that it addresses environmental
risk holistically (multi-media) and actively fosters partnering. RGI is, therefore, EPA's role model
for transitioning from a single-media to a multi-media focus, based on consensus building, science,
and risk.

       One of the hallmarks of the RGI program has always been the ability to use RGI funds to
"leverage" funds from a wide variety of outside sources. Practically all of the grants made under
this program include the commitment of substantial funds from EPA's partners, often greatly in
excess of the funding level provided by EPA. The RGI Program enables EPA Regional  offices to
work with states, local governments and the private sector, in specific places on problems  identified
as high priority by the Regions, based on both national and regional criteria, and to bring additional
resources to bear from EPA partners in a highly focused effort.

       The funding for this effort was established in 1993 to enable the Regions to apply state-of-
the-art, multi-media approaches to projects designed to bridge the gap between media-based,
program-driven funding priorities, and the cross-jurisdictional, multi-media priorities identified by
Regional comparative risk exercises. It funds projects that are important to the regions and the
states, but which are not funded elsewhere in EPA's budget, such as an ozone flex project in six
southern states that allows areas in near non-attainment to develop voluntary air quality plans
tailored to local needs.
FY 2003 Change from FY 2002 Enacted

EPM

•(+$ 1,000,000) The F Y 2003 Request is $ 1,000,000 above the FY 2002 Enacted level to enable the
Regions to address their priority funding needs for multi-media, community-based environmental
protection activities. This will fund 12-20 new projects, allowing states, local governments, and
private partners to identify community-specific solutions to their unique environmental issues.

Verification and Validation of PMs

       None
                                         VIII-46

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Coordination with Other Agencies




      None




Statutory Authorities




Multi-media
                                       VIIM7

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                   Env. Problems

Objective: 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)

Incorporate Innovative Approaches.
Environmental Program & Management
Science & Technology
Total Workyears
FY 2001
Actuals
$24,887.3
$24,488.2
$399.1
127.1
FY 2002
Enacted
$23,324.5
$23,324.5
$0.0
120.2
FY 2003
Request
$29,787.9
$29.787.9
$0.0
126.7
FY 2003 Req.
v. FY 2002 Ena.
$6,463.4
$6,463.4
$0.0
6.5
                                    Key Program
                                (Dollars in Thousands)

Administrative Services
Common Sense Initiative
Congressionally Mandated Projects
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
Performance Track
Project XL
Regulatory Development
Small Business Ombudsman
FY 2001
Enacted
$64.6
$1,781.1
$4,729.4
$0.0
$328.8
$34.0
$1,995.6
$2.948.9
$10,430.3
$3,000.9
FY 2002
Enacted
$0.0
$1,838.7
$1,000.0
.$1,784.4
$380.3
$186.1
$1,834.6
$0.0
$13,251.3
$3,049.1
FY 2003
Request
. .$0.0
$0.0
$0.0
$1.821.7
$409.3
$168.7
$1,834.6
$0.0
$22.429.6
$3,124.0
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($1,838.7)
($1,000.0)
$37.3
$29.0
($17'.4)
$0.0
$0.0
$9,178.3
$74.9
FY 2003 Request

       A critical priority for EPA in FY 2003 will be to improve the Agency' s regulatory and policy
development process. The Agency will strengthen the policy analysis of key regulatory and non-
regulatory actions, improve the economic analysis underlying Agency actions, and improve the
                                       VIII-48

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regulatory and policy action information management system. The multimedia analysis will include
policy option analysis, regulatory analysis, and analysis of innovative policy approaches. Work will
also be directed at strengthening accountability to stakeholders by improving the quality and
availability of regulatory data to stakeholders.

       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 the course of this
work, the Agency will continue to work closely with states, tribes, and local governments, and will
pay particular attention to the needs of small and medium-sized businesses. EPA's revised strategy
for innovation, the product of deliberation among all the Regional and media offices, will be
reflected in a report to be issued in mid 2002.

       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 FY 2003,
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.

       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 (e.g., the
Smart Growth Index); (3) leveraging EPA's resources to provide and disseminate information (e.g.,
through web sites and publications); (4) forming multi-disciplinary, multi-lateral partnerships among
public and private sector stakeholders;  and (5) identifying and conducting research related to
environmental quality impacts associated with development patterns and practices.

       In response to a large and growing number of requests from states and local governments to
help them address environmental issues associated with growth and development, the Agency has
increased its activities under smart growth.  EPA will help states and local governments achieve

                                         VIII-49

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their environmental goals using smart growth approaches.  EPA will  integrate smart growth
approaches to environmental quality and voluntary smart growth programs within key program
offices and Regional offices.  EPA will also develop regulatory incentives that will encourage
redevelopment within metropolitan areas and help preserve watersheds, open space, and habitats.
These incentives will also encourage more environmentally-friendly development in rural areas.

       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.

    •   Sector strategies complement current EPA activities by allowing the Agency to approach
issues more holistieally, 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 FY 2003, EPA will continue 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.

       In FY 2003, 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 build on previous sector successes, concentrating on sectors with high concentrations of small
businesses and complementing goals in EPA's new Innovations Strategy.  EPA will continue to
work  with sectors to 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 FY 2003, 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-50

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       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.

       The Office of Policy, Economics, and Innovation (OPEI) will serve as a primary gateway for
stakeholders/customers to interact 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. OPEI will integrate and coordinate 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.

       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, the Agency's innovation strategy engages Agency managers and staff, as well as
external stakeholders, in  finding better ways of doing business without imposing unnecessary costs
and regulatory burdens.  Through innovation and streamlining the current regulatory system (e.g.,
consolidate and simplify regulations and  reporting requirements, and streamline permitting), and
through designing and testing integrative  and holistic approaches (e.g., sector- and industry-based
approaches, and community-based  environmental protection partnership  programs),  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 multi-media environmental challenges.

       In FY 2003, EPA will  implement the  Agency's Innovations Strategy.  The Strategy,
developed through a joint effort by EPA and the states to implement lessons learned from innovation
experiences to  date,  strategically  focuses the  Agency's innovation  activities  on  priority
environmental problems. Work in FY 2003 will include further integrating innovation efforts with
those of the states; developing new tools and approaches; adapting the culture and management
systems to foster innovation; and focusing on measuring and evaluating results, The Agency will
continue 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.

       In FY 2003, EPA will work to provide incentives and rewards to  good environmental
performers in the business community. The Agency will continue the Performance Track Program
so that those businesses that perform well are treated differently from those that do not. EPA will

                                         VIII-51

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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 2003 Change  from FY 2002 Enacted

EPM
(-$1,844,7007-13.3 FTE)  The Common Sense Initiative will be eliminated and the lessons learned
from this program have influenced new generations of environmental innovation policy.

•(+$9,599,200/23.3 FTE)  The FY2003 Request  is $9,599,200 and 23.3 FTEs above the FY 2002
Request  level to  fund regulatory development activities.  These resources  will support the
management of an expanded regulatory development process, strengthen economic analyses, expand
Performance Track, and increase regulatory innovation efforts in sectors, evaluation, and industrial
ecology activities. Increased payroll costs are also reflected in this request.

Coordination with Other Agencies

       None

Statutory Authorities

National Environmental Policy Act

The Economy Act of 1932

Toxic Substances  Control Act sections 4, 5, and  6(15 U.S.C. 2603,2604, and 2605)

Pollution Prevention Act (42  U.S.C. 13101 -13109)

Clean Water Act
                                        VIII-52

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                           Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                    Env. Problems

Objective: 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)

Demonstrate Regional Capability to Assist
Environmental Decision Making.
Environmental Program & Management
Hazardous Substance Superfund
Total Workyears
FY2001
Actuals
$6,417.2
$3,656.9
$2.760.3
3.9
FY 2002
Enacted
$6,677.9
$3,622.6
$3,055.3
3.0
FY 2003
Request
$6,591.8
$3.647.1
$2,944.7
3.0
FY 2003 Req.
v. FY 2002 Ena.
($86.1)
$24.5
($110.6)
0.0
                                    Key Program
                                 (Dollars in Thousands)

Facilities Infrastructure and Operations
Management Services and Stewardship
Regional Science and Technology
Superfund Remedial Actions
FY2001
Enacted
$0.0
$0.0
$3,850.3
$2,993.4
FY 2002
Enacted
$156.1
$2.2
$3,574.9
$2,944.7
FY 2003
Request
$43.6
$1.7
$3,601.8
$2,944.7
FY 2003 Req.
v. FY 2002 Ena.
($112.5)
($0.5)
$26.9
$0.0
FY 2003 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.

       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
                                       VIII-53

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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 2003 Change from FY 2002 Request

*      none

Verification and Validation of PMs

       None

Coordination with -Other Agencies

       None
Statutory Authorities

Multi-media
                                        VIII-54

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                           Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

 Sound Science, Improved Understanding of Env. Risk and Greater Innovation to Address
                                    Env. Problems

Objective: 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
Total Workyears
FY 2001
Actuals
$2,727.0
$2,727.0
22.8
FY 2002
Enacted
$3,242.9
$3,242.9
22.5
FY 2003
Request
$3,690.3
$3,690.3
22.5
FY 2003 Req.
v. FY 2002 Ena.
$447.4
$447.4
-0.0
                                    Key Program
                                 (Dollars in Thousands)

Facilities Infrastructure and Operations
Management Services and Stewardship
Science Advisory Board
FY 2001
Enacted
$0.0
$0.0
$2,775.1
FY 2002
Enacted
$340.2
$14.9
$2,887.8
FY 2003
Request
$326.5
$11.3
$3,352.5
FY 2003 Req.
v. FY 2002 Ena.
($13.7)
($3.6)
$464.7
 FY 2003 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
science considerations into the Agency's new ways of doing business (e.g., place-based and sector-
                                        VIII-55

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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 than 300 consultants. They cprne from a broad
range of disciplines — physics, chemistry, biology, mathematics, engineering, ecology, economics,
medicine, and other fields. Operating under the Federal Advisory Committee Act (FACA), the SAB
empanels technically strong and diverse groups to ensure a balanced range of technical views from
academia,  communities, states, independent research institutions, and industry.

       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.

       In  FY 2001, the SAB made changes to address concerns raised by  the  Government
Accounting Office concerning procedures to ensure that there are no conflicts of interest among
members of the SAB and that review panels are balanced. A process has been drafted and it is
anticipated that the new procedures will be fully operational during FY 2002.

FY 2003 Change from FY 2002 Enacted

EPM

•      none
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.

                                        VIII-56

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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., the advisory committee to the Mayor of Columbus, Ohio; the environmental advisory board to
the Governor of the State of Michigan; the Health Council of the Netherlands; and the Academy of
Sciences of Australia).  The success of the SAB is measured, in part, by the extent to which the
Board is used as a model for advisory boards at various levels of government — from the local level
to the international level.

Statutory Authorities

Federal Advisory Committee Act (5 U.S.C. App.)
                                        VIII-57

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Goal 9: Credible Deterrent

-------
Environmental Protection Agency
2003 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-7
       Promote Compliance Through Incentives and Assistance	 IX-31

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                           Environmental Protection Agency

           FY 2003 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 laws intended to protect public health
and the environment.

                                  Resource Summary
                                 (Dollars in thousands)

A Credible Deterrent to Pollution and
Greater Compliance with the Law
Increase Compliance Through
Enforcement.
Promote Compliance Through Incentives
and Assistance.
Total Workyears
FY 2001
Actuals
$393,9793
$337,582.6
$56,396.7
2,511.2
FY 2002
Enacted
$393,550.1
$337,781.6
$55,768.5
2,492.5
FY2003
Request
$402,462.9
$346,590.5
$55,872.4
2,330.7
FY 2003 Req.
v. FY 2002 Ena.
$8,912.8
$8,808.9
$103.9
-161.8
Background and Context

       Protecting the public and the environment from risks posed by violations of environmental
requirements is 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 ensuring compliance with the laws using
a variety of tools including: enforcement, compliance monitoring, compliance assistance, and
compliance incentives in cooperation with our regulatory partners.

       Due to the breadth and diversity of private, public, and federal facilities regulated by EPA
under various statutes, the 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, assists the regulated  community in
                                     IX-1

-------
understanding environmental laws and regulations, 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.
Further, EPA cooperates with other nations to enforce and ensure compliance with environmental
regulations.

       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 complement those performed by states and tribes and 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 Agency's enforcement and compliance assurance program uses compliance assistance
and incentive tools to ensure compliance with regulatory requirements and reduce adverse public
health  and environmental problems. To achieve compliance,  the  regulated community must
understand its regulatory obligations and how to comply with those obligations. 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 also enables other assistance providers (e.g., states, universities) to provide
compliance information to the regulated community. Maximum compliance requires the active
efforts of the regulated community to police itself. EPA will continue to investigate options for
encouraging self-directed audits and 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.

       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 uniquely Federal 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.
                                      IX-2

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Strategic Objectives and FY 2003 Annual Performance Goals

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.  Maintain a well-trained  EPA workforce that can provide training, technical
       support, and provide backup inspection support and expertise for complex inspections done
       jointly with States and Tribes. EPA will provide training as well as assistance with state and
       tribal inspections to build capacity, including implementation of the inspector credentials
       program for State/Tribal inspection programs.

•      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.

•      EPA will  conduct  14,000  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 addition,
       EPA will respond to public complaints in a timely manner.

•      Ensure compliance with legal requirements for proper handling of hazardous waste imports
       and exports.

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.

•      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
       online compliance assistance centers and compliance guides.
                                     IX-3

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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 2003, the Agency's
enforcement initiatives include enforcement of lead paint rules, and modernization of its data
systems to assist in targeting compliance and enforcement efforts.

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 2003, the enforcement and compliance
assurance programs will work with and support state agencies implementing authorized, delegated,
or approved environmental programs. 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 originating in
the United States.
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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
FY 2003, the compliance incentives program will continue to implement the policy on Incentives for
Self-Policing, Small Business Compliance Policy and Small Communities Policy as core elements
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 statutory and regulatory environmental requirements,
thereby reducing risk to human health and the environment and gaining measurable improvements in
compliance. The program will 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. The annual Compliance Assistance Activity Plan
provides information on planned compliance assistance activities in the upcoming fiscal year and
will serve as a reference for other assistance providers and the public on EPA's planned tools and
activities. The Agency  will continue to support the sector based Compliance Assistance Centers,
update the Compliance Clearinghouse, sponsor  a Federal  advisory committee on compliance
assistance,  and will continue to develop and enhance a APlatform@ from  which to launch
additional assistance centers.

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
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 cases.  The success of EPA's activities hinge on the availability and
applicability of technology and information system's. Finally, the regulated community's willingness
to comply with the law will greatly influence EPA's ability to meet its performance goals.

       Other  factors, such as the number of projects subject to scoping requirements initiated by
other federal  agencies, the number of draft/final documents  (Environmental Assessments and
Environmental Impact Statements) submitted to EPA for review, streamlining requirements of the
Transportation Equity Act for the 21st Century (TEA-21), and the responsiveness of other federal
agencies to environmental concerns raised by EPA, may also impact the Agency's ability to meet its
performance goals.

       Lastly, the NEPA Compliance workload is driven by the number  of project proposals
submitted to EPA for funding or NPDES permits that require NEPA compliance, including the
Congressional projects  for wastewater,  water supply, and solid waste collection facility grants,
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which have increased in recent years.
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

        A Credible Deterrent to Pollution and Greater Compliance with the Law

Objective: 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)

Increase Compliance Through
Enforcement.
Environmental Program & Management
Hazardous Substance Superfund
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$337,582.6
$243,937.0
$15,037,3
$10,684.0
$67,924.3
2,092.2
FY 2002
Enacted
$337,781.6
$239.905.0
$19,016.6
$10,948.6
$67,911.4
2,075.9
FY2003
Request
$346,590.5
$233,721.7
$18,687.9
$11,269,5
$82.911.4
1,932.6
FY 2003 Req.
v. FY 2002 Ena.
$8,808.9
($6,183,3)
($328.7)
$320.9
$15,000.0
'-143.3
                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Capacity Building
Civil Enforcement
Compliance Assistance and Centers
Compliance Incentives
Compliance Monitoring
Criminal Enforcement
Data Management
Enforcement Training
Environmental Justice
Facilities Infrastructure and Operations
Homeland Security
Legal Services
Management Services and Stewardship
NEPA Implementation
FY 2001
Enacted
$4,432.7
$10,395,3
$102,817.0
$351.6
$415.9
$56,781.2
$40,840,1
$15,479.7
$5,277.7
$159.4
$34,719.8
$0.0
$855.7
$2,877.8
$233.9
FY 2002
Enacted
$0.0
$9,417.1
$101,437.2
$406.7
$284.6
$53,216.3
$41,555.7
$16.069.9
$3,947.3
$0.0
$25,957.5
$10,467.8
$988.5
$5,804.7
$226.9
FY 2003
Request
$0.0
$10,342.7
$99,718.8
$378.0
$292.6
$51,198.4
$42,538.1
$16.372.7
$3,880.4
$0.0
$27.464.3
$3,807.0
$1,057.4
$6.391.3
$237.4
FY 2003 Req.
v. FY 2002 Ena.
$0.0
$925.6
($1,718.4)
($28.7)
$8.0
($2,017.9)
$982.4
$302.8
($66.9)
$0.0
$1,506.8
($6.660.8)
$68.9
$586.6
$10.5
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RCRA Enforcement State Grants
Regional Management
State Multimedia Enforcement Grants
State Pesticides Enforcement Grants
State Toxics Enforcement Grants
FY2001
Enacted
$43,127.6
$1,031.2
$0.0
$19,867.8
$5,138.9
FY 2002
Enacted
$42,904.7
$90.0
$0.0
$19,867.8
$5,138.9
FY 2003
Request
$42,904.7
$0.0
$15,000.0
$19,867.8
$5,138.9
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($90,0)
$15,000.0
$0.0
$0.0
FY 2003 Request

       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.

       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.
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Environmental Enforcement

       The  Agency  performs the compliance  monitoring,  civil enforcement, and  criminal
enforcement program activities in this objective. In FY 2003, 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,  and  other human health and
environmental outcomes the program produces.  This Annual Plan contains annual performance
goals and measures to show results such as reducing significant non-compliance and behavioral
changes resulting from compliance assistance and enforcement efforts. These measures 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, 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 complement those performed by States and Tribes and are a key strategy
for meeting the long-term and annual goals established for air, water, pesticides, toxic substances,
and hazardous waste 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.

       To maintain EPA's expertise in field monitoring and to ensure compliance with EPA Order
3500.1, the Agency will support development of Inspectors' manuals, training modules, and delivery
of training to Regional, State, and Tribal inspectors and program managers. The EPA Order 3500.1
establishes consistent Agency-wide training and development programs for employees leading
environmental compliance inspections/field investigations to ensure that they have  working
knowledge of regulatory requirements, inspection methodology, and health and safety measures.
The  Order consists of a 3-level training program for compliance inspectors/field investigators:
Occupational Health and Safety Curriculum, Basic Inspector Curriculum, and Program-Specific
Curriculum. EPA  compliance inspectors/field investigators must complete the required training
before conducting  a compliance inspection/field investigation. The materials will cover sampling
tools, use of new  technology including the use  of EPA's information systems and training on
conducting inspections as EPA moves to  e-sign (a process where the inspection forms/reports are
filled out electronically and  certified as  legal documents).  Maintaining an effective inspection
program depends on a well-trained workforce.

       In FY 2003, 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
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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 2001,
EPA responded to 1,431 notices regarding 7,682 distinct waste streams.

        In FY 2003, 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
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, States and Tribes.  These national priorities
include: Ensuring  Cleaner Water; (Clean Water Act-(Wet Weather) and  Safe Drinking Water Act
(Microbial Rules); Protecting  Air  Quality (Clean Air Act- (New Source Review/Prevention of
Significant Deterioration, Petroleum Refinery Sectors and Air Toxics); and Better Management of
Hazardous Wastes (RCRA-(Permit Evaders). The Office has also added two management priorities,
Expand and Improve Compliance Assistance and Incentives Programs, and Improve Data Quality
and Management.  •

       In FY 2003, EPA estimates that it will conduct 14,000 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 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 achieves  the Agency's  environmental  goals through
consistent, fair, and focused enforcement of all environmental statutes.  The overarching goal of the
civil enforcement program is to protect 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 problems, transboundary pollutants, and multi-state  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.

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       In FY 2003, 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.

       As part of the National Energy Plan, OECA will implement innovative procedures recently
developed to allow facilities that are unable to start or expand energy production due to air quality
permitting constraints to make these changes quickly while simultaneously obtaining the required
permits and controlling their pollution. The Agency is working with utility and refinery companies
that agree to settle  claims of Clean  Air Act violations to ensure that the agreements contain
provisions that allow predicted capacity expansions to affected facilities. These provisions include
emission credits or caps that allow them to make changes without triggering permit requirements.

       Criminal Enforcement. The criminal enforcement program brings to bear the Agency's most
powerful enforcement tool against the most significant environmental violations. By demonstrating
that the regulated community will be  held accountable for serious, willful statutory violations in
terms of jail sentences and criminal fines, the program acts to forcefully deter violations of
environmental laws and regulations in a way that civil j udicial and administrative enforcement rarely
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 enhancing capacity through specialized training and community policing efforts.

       EPA's efforts to work more closely and cooperatively with industry are complemented by the
criminal enforcement program 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 2003, 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.  EPA will also continue to
develop and deploy a secure network to  ensure proper handling of confidential law enforcement
information used in the criminal program.

       The Agency's forensic program provides specialized 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 activities, the program must maintain state-of-the-art skills and
equipment, capable of dealing with an increasingly sophisticated regulated community. EPA's
National Enforcement Investigations Center (NEIC) is the only accredited environmental forensics

                                           11

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center in the world. Their Accreditation Standard has been customized to cover the civil, criminal,
and special program work conducted by the program.

       In FY 2003, the forensic program will complete an upgrade to meet International Standards
of Operation for environmental data measurements to maintain accreditation. The program will also
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. In addition,  the program will provide
technical support for the initiatives identified as FY 2003 priorities in the civil program and will
support the Agency's integrated compliance monitoring program, using a unique process based
approach.

Data Systems Modernization

       Reliable, comprehensive and up-to-date data systems are key to EPA's ability to effectively
target compliance monitoring for environmental problems in the highest priority sectors 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. EPA will expand the development of Quality Management Plans (QMPs)
building on those developed for the National Compliance Data Base/FIFRA and TSCA Tracking
System, the Resource Conservation and Recovery Information System, and a final data quality audit
for the Permit Compliance System (PCS). The Agency is developing a Data Quality Strategy
focusing on: expansion of the public access and error correction functions of the Integrated Data for
Enforcement Analysis  system (IDEA) and the Online  Targeting Information System (OTIS),
objective verification of core data fields across systems and programs through random sampling
technology, and resolution of data quality problems  as they relate  to interpretation of data
definitions. In FY 2003, the Agency will have a QMP or equivalent in place for the initial release of
the Integrated Compliance Information System (ICIS) and will begin modifications to the Plan to
incorporate subsequent phases of ICIS (the National Permit Discharge  Elimination System, Air,
Toxics, and Pesticides).

       In FY 2003, the Agency will continue its efforts in the phased implementation of 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  (PCS), 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 2003.
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       In addition, in FY 2003, EPA will provide a range of modernization efforts. For the NPDES
program, PCS will be in the completion of system software development stage, training and
implementation stage, providing desktop, web based access to State and EPA managers and staff as
well as providing greater  public  access to timely and accurate  environmental  data.   The
modernization of the AIRS Facilities System (AFS), will commence the design stage. Replacement
of these systems is key to the Agency's ability to use the significant amount of information collected
from the States and localities.to direct and manage the permitting and enforcement programs.

State. Tribal, and International Capacity Building

       A strong state and tribal enforcement and compliance assurance presence  is essential to
EPA's long-term strategic plan objective to identify and reduce significant noncompliance in high
priority areas while maintaining a strong enforcement presence in all regulatory program areas.
Most of the Nation's  environmental laws  envision a strong  role for state governments in
implementing and managing environmental programs. In FY 2003, the enforcement and compliance
assurance program will continue support to state agencies implementing authorized, delegated, or
approved environmental programs through the new enforcement 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.

       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  2003, 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 hi food, hazardous waste,  toxic
substances, and air pollution.  In FY 2003, the enforcement and compliance assurance program will
continue to  award state and tribal enforcement grants to assist in  the implementation of the
enforcement grant program and continued implementation of the compliance and enforcement
provisions of the Toxic Substances Control Act (TSCA) and the Federal Insecticide, Fungicide and
Rodenticide Act (FIFRA). These grants support state and tribal compliance activities to protect the
environment from harmful chemicals and pesticides. The enforcement component of RCRA state
grants is also included in this objective.
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•      The Agency  will provide  $1.5 million to assist states and tribes in enforcing the
       environmental laws delegated to their states. These funds will allow states to assume greater
       responsibility for improving compliance with environmental laws and regulations through
       the use of enforcement and other tools.

•      Under the Pesticides Enforcement Grant program, EPA provides resources to states and
       Indian tribes to conduct FIFRA compliance inspections and take appropriate enforcement
       actions, and implement programs for farm worker protection.

•      States receive toxic substances grant funding for compliance inspections of asbestos and
       PCBs and for implementation of the state  lead enforcement program.  The funds will
       complement other Federal program grants for building state capacity for lead abatement,
       and enhancing compliance with disclosure, certification and training requirements.  States
       will be encouraged to direct their compliance monitoring efforts toward entities most
       affected by the PCB AMega Rule.@ This rule increased the number and type of units which
       are required to register with EPA and the additional funding will assist the states to focus on
       inspection and compliance assistance activities to entities who fail to timely register PCB
       equipment, correctly mark PCB equipment, and to provide information to the regulating
       authority under the PCB Mega Rule.  In the asbestos program, the increase will allow the
       Agency to assist States to focus on:  1) additional state asbestos AHERA inspections and
       compliance assistance with emphasis on Charter Schools; and 2) developing and conducting
       asbestos training courses that incorporate both the AHERA and NESHAP programs.  In
       addition, the increase will be used to fund newly authorized states under the TSCA lead
       program.

•      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.

       The Agency also provides single media enforcement grants to the states which are funded
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
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       The Agency's enforcement training-program is mandated by the Pollution Prosecution Act to
provide environmental enforcement training nationally through the National Enforcement Training
Institute  (NETI).  is mandated  by the Pollution  Prosecution Act to provide  environmental
enforcement training nationally.  The program  oversees the design of core and  specialized
enforcement courses and their delivery to lawyers, inspectors, civil and criminal investigators and
technical experts.  In FY 2003, the program continue development of a training center on the
Internet.  ANETI Online@ will offer timely, targeted technical training courses to  as wide an
audience as possible, providing a structure for developing and tracking individual training plans and
 management of the program's training delivery processes.

       The Agency also provides specialized classroom training in criminal environmental law
enforcement at the Department of Treasury' s Federal Law Enforcement Training Center (FLETC) in
Glynco, GA. FLETC was developed to train law enforcement.personnel who carry firearms. The
program develops and delivers basic and advanced training to EPA Special Agents and their state,
local and tribal partners across the United States and in selected counties worldwide.  FLETC
provides one of the few opportunities for state, local, and tribal enforcement professionals to obtain
criminal investigations training. In FY 2003, the enforcement training program will further enhance
opportunities for hands-on training with the development of a practical exercise facilities in Denver^
Colorado.

Homeland Security Enforcement

       With the events of September 11, 2001,  and  the establishment of the Office of Homeland
Security, the EPA has taken on expanded responsibilities for counter terrorism and anti-terrorism
activities. As  the subject matter  expert for environmental'crimes involving weapons on mass
destruction, biological, and chemical attacks, EPA criminal enforcement program plays a critical
role in performing crisis management (i.e., law  enforcement) roles and responsibilities under
Presidential Decision Directive 39, In FY 2003, Special Agents will provide environmental crimes
expertise to the Federal Bureau of Investigation's  (FBI) Joint Terrorism  Task Forces and the
Department  of Justice's (DOJ) Anti-Terrorism Tasks Forces.  Staff will also form five National
Counter Terrorism Response Teams to coordinate with FBI field offices, perform protective duty
services for the Administrator's Office and provide dn-site investigative support for designated
National  Security Special Events. Additionally, experts at the National Enforcement Investigations
Center (NEIC)  will respond with  technical support in the event of a terrorist caused release of
hazardous chemicals. As part of the Federal Counter Terrorism response, NEIC's staff provide on-
scene technical and scientific advise, forensic evidence collection and chemical identification of
released substances.

FY 2003 Change from FY 2002 Enacted
                                           15

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EPM

•      (-$5,618,500) The Supplemental appropriation Congress provided in FY 2002 for Homeland
       Security efforts were not requested in FY 2003

•      (-$8,180,000, -81.8  FTE)  Reduction to support the new multimedia enforcement grant
       program to the states.

•      (-$ 1,623,400) Resources, dollars and FTE, associated with rent are allocated in proportion
       to  Agency-wide  FTE located in each goal, objective.    Resources, dollars and FTE,
       associated with utilities, security, and human resource operations are allocated in proportion
       to Headquarters FTE located in each goal and objective.  Changes reflect shifts in FTE
       between goals and objectives. Resources, dollars, and FTE associated with contracts and
       grants are allocated in proportion to Headquarters' contracts and grants resources located in
       each goal and objective. Changes in these activities reflect shifts in resources between goals
       and objectives.  (Total changes - rent:  -$3,569,400, utilities:  +$3,468,000,  Security:  -
       $9,103,900.  Nominal increases/decreases occurred in human resource operations, grants,
       and contracts related activities.)

STAG

•      (+$15,000,000) Increase will provide new enforcement grants to the states.

Superfund

•      (-$1,392,000, -10 FTE),  The Supplemental appropriation Congress provided in FY 2002
       for Homeland Security efforts were not requested in FY 2003

•      (+$637,200) Resources, dollars, and FTE associated with rent are allocated in proportion to
       Agency-wide FTE  located in each  goal and objective.  Resources, dollars, and FTE
       associated with utilities, security and human resource operations are allocated in proportion
       to Headquarters FTE located in each goal and objective. Changes reflect shifts in FTE
       between goals and objectives. Resources, dollars, and FTE associated with contracts and
       grants are allocated in proportion to Headquarters' contracts and grants resources located in
       each goal, objective. Changes in these activities reflect shifts in resources between goals and
       objectives.  (Total  changes - rent:   -$3,569,400,  utilities: +$3,468,000,  Security:   -
       $9,103,900.  Nominal increases/decreases occurred in human resource operations, grants
       and contracts related activities.)
                                           16

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 FY 2003 Change from FY 2002 Enacted

 EPM

 •        (-$1,780,000,  -17.8 FTE)   Reduction to support the new multimedia enforcement grant
          program to the states,

 Annual Performance Goals and Measures
 Non-Compliance Reduction

 In 2003   EPA will direct enforcement actions to maximize compliance and address environmental and human health problems.

 1 n 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 directed enforcement actions to maximize compliance and address environmental and human health problems.
 Performance Measures:

 Millions of pounds of pollutants required to be reduced
 through enforcement actions settled this fiscal year.(core
 optional)

 75% of concluded enforcement actions require physical
 action that result in pollutant reductions and/or changes in
 facility management or information practices. OECA will
 break out the %.

 Develop and use valid compliance rates or other indicators of
 compliance for selected populations.

 Reduce by 2  percentage points overall the level of significant
 noncompliance recidivism among  CAA, CWA, and RCRA
 programs from FY 2000 levels

 Increase by 2 percent over FY 2000 levels the proportion of
• significant noncomplier facilities under CAA, CWA, and
 RCRA which returned to compliance in less than two years.
 (core required)

 Produce report on the number of civil and criminal
 enforcement  actions initiated and concluded.

 Maintain or reduce the level of significant noncomplier
 recidivism under the CAA.

 Maintain or reduce the level of significant noncomplier
 recidivism under the CWA.

 Maintain or reduce the level of significant noncomplier
 recidivism under RCRA.

 Maintain or decrease the proportion of significant .
 noncomplier facilities under CAA which returned to
 compliance in more thatn two years,

 Maintain or decrease the proportion of significant
 noncomplier facilities under CWA which returned to
 compliance in more than two years.

 Maiintain or  decrease the proportion of significant
 noncomplier facilities under RCRA which returned to
FY2001
 Actual
        660



         74




          6


        .2.4



        1.33
FY 2002
Enacted
        300
         75
FY 2003
Request
        300
         75
                                            <=25
                                            <=55
                                            <=17
                                            <=15
                                             =19
M pounds



Percent




Populations


PercentagePoint



PercentagePoint




Report


percent


percent


percent


percent



percent



percent
                                                           17

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Performance Measures:                                   .      FY2001            FY2002            FY2003
                                                               Actual             Enacted            Request
compliance in more than two years.



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 noncompliers to return to
               compliance, reducing noncompliance recidivism rates, and improvements in facility process and/or management practices
               through behavioral changes. The baseline rates for many of these measures were established in FYOO. These  measures will
               complement the traditional enforcement measures of inspections and enforcement actions to provide a more complete picture of
               environmental results from the enforcement and compliance program.

Inspections/Investigations

In 2003   EPA will conduct inspections, criminal investigations, and 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 2003   EPA will provide direct investigative,  forensic, and technical support to the Office "of Homeland Defense, FBI and /or other federal,
               state and local law enforcement agencies to help detect and prevent, or respond to, terrorist-related environmental, biological or
               chemical incidents.

In 2002   EPA will conduct inspections, criminal investigations, and 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 conducted inspections and civil and criminal investigations targeted to areas with patterns of non-compliance, that pose risks to
               human health or the environment, or include disproportionately exposed populations.

Performance Measures:                                         FY2001            FY 2002            FY2003
                                                               Actual             Enacted            Request
Number of EPA inspections conducted (core required)                    17,812               15500              14000      inspections

Number of Criminal Investigations                    "                    482                 400                400      Investigations

Develop a list of high priority facilities in Indian country for                     1                           •                   list
the enforcement and compliance program.

Number of Civil Investigations                                            368                 200         '       ISO      Investigations

Establish minimum core compliance monitoring program for                                        5                   4      Percent
selected high priority facilities in Indian country.

EPA will respond to investigative leads that relate to security                                                         100      percent
of homeland environment, FBI requests for support, and
participate in all National Special Security Events as
requested.



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 FY03, EPA will maintain its enforcement presence by conducting  at
                least 14,000 inspections, 400 criminal investigations and 180 civil -investigations.


Quality Assurance

In 2003   Identify noncompliance, and focus enforcement and compliance assurance on human health and environmental problems, by
                maintaining and improving quality and accuracy of data.

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   EPa maintained and continued to improve enforcement and compliance data used to identify noncompliance and focus on human
                health and environmental problems.

Performance Measures:                                          FY2001            FY 2002          " FY 2003

                                                                18

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                                                                Actual
                                                                                    Enacted
 Complete Phase I of Integrated Compliance Information
 System (ICIS) development (programming) and begin Phase
 II.

 Operate 14 information systems housing national
 enforcement and compliance assurance data with a minimum
 of 95% operational efficiency.

 Design and develop Phase II of ICIS (modernization of the
 Permit Compliance System (PCS)) by September 2003.

 Have Phase I of the Integrated Compliance Information
 system ICIS  fully operational in March 2002.

 Ensure that enf. and compl. data is reported in 14 nat. info.
 systems to provide Fed. and state programs accurate and
 timely data through which env. and human health problems
 can be identified.
                                                                                                        Request
          95
                                      Phase


                                      Percent


                               1      Data System

                                      Phase

                              95      efficiency
 Baseline:  EPA's ability to target and measure effectiveness of its enforcement activities depends upon reliable and up-to-date data systems.
                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.

 Capacity Building

 In 2003   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 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   OECA improved the capacity of states, localities and tribes to  conduct enforcement and compliance programs.
 Performance Measures:

 Number of EPA training classes/seminars delivered to states,
 localities and tribes to build capacity.

 Conduct EPA-assisted inspections to help build state program
 capacity

 The National Enforcement Training Institute will train Tribal
 personnel.

 Provide tribal governments with 50 computer-based training
 (CBT) modules.

 Total number of state and local students trained.

. Train Tribal personnel.
FY2001
 Actual
FY 2002
Enacted
895


428


235
 200


 400




  50


4900

  95
                               FY 2003
                               Request
                                                 250
                                                  50
                                      Classes

                                      Inspections

                                      personnel

                                      Training module

                                      Students

                                      Personnel
 Baseline:  Improve capacity of states, localities and tribes to conduct enforcement and compliance programs by providing training as well as
                assistance with state and tribal inspections.

 International Enforcement

 In 2003   Ensure compliance with legal requirements  for proper handling of hazardous waste imports and exports.

 In 2002   Ensure compliance with legal requirements  for proper handling of hazardous waste imports and exports.

 In 2001   EPA did ensure compliance with legal requirements for proper handling of hazardous waste imports and exports.

                                                                 19

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Performance Measures:                             FY2001         FY2002         FY2003
                                            Actual         Enacted         Request
Track, consent to, and/or acknowledge the movement of                                          100     percent
haz. wastes into and out of the U.S. to ensure proper
management to protect the env. and public health and safety.

Baseline: In FY03, 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 (PM): 75% of concluded enforcement actions require physical action that
result in pollutant reductions and/or changes in facility management or information practices. OECA
will breakout the percentage among, physical, facility management and information practices.

Performance Database: Docket, which tracks EPA civil, judicial, and enforcement actions.

Data Source:  The data for Docket are generated through the use of the Case Conclusion Data Sheet
(CCDS), which Agency staff prepare after the conclusion of each criminal and civil (judicial and
administrative) enforcement action. EPA implemented the CCDS in 1996 to capture relevant
information on the results and environmental  benefits of concluded enforcement cases.   The
information generated through the CCDS is used to track progress for several of the performance
measures.  The CCDS form consists of 27 specific questions  which, when completed, describe
specifics of the case; the facilities; 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 staffs determining the difference between the current
Aout of compliance® concentration of the pollutant(s) and  the post enforcement action  Ain
compliance® concentration.  This difference is then converted to mass per time using the flow or
quantity information derived during the case.

QA/QC Procedures: Quality Assurance/Quality Control procedures are in place for both the
CCDS and Docket entry.  Separate CCDS Calculation and Completion Checklists  are 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.

                                            20

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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 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 (PM): Millions of pounds of pollutants required to be reduced
through settled enforcement actions. (Core optional)

Performance Database: Docket, which tracks EPA civil, judicial and enforcement actions.

Data Source: The data for Docket are generated through the use of the Case Conclusion Data Sheet
(CCDS), which Agency staff prepare after the  conclusion of each criminal and civil (judicial and
administrative)  enforcement action.  EPA implemented the CCDS in 1996 to capture relevant
information on the results and environmental benefits of concluded enforcement  cases.  The
information generated through the CCDS is used to track progress for  several of the performance
measures.  The CCDS form consists of 27 specific questions which,  when completed, describe
specifics of the case; the facilities; 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 staffs determining the difference between the current
Aout of compliance® concentration of the pollutant(s) and the  post enforcement action Ain
compliance® concentration.  This difference is then converted to mass per time using the flow or
quantity information derived during the case.

QA/QC Procedures: Quality Assurance/Quality Control procedures are in place for both the
CCDS  and Docket entry. Separate  CCDS Calculation and Completion Checklists are required to
be filled out at the time the CCDS is completed.

                                          21

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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 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 (PM): Develop and use valid compliance rates or other indicators of
compliance for selected populations.

Performance Databases:  The  Permit  Compliance  System  (PCS)  tracks National Pollutant
Discharge Elimination System (NPDES) permit and enforcement actions, as well as reporting and
scheduling requirements. The Airs Facility Subsystem (AFS) captures emission, compliance and
permit data for major stationary sources of air pollution. The Resource Conservation and Recovery
Act Information System (RCRAInfo)  supports permit, compliance, and corrective action activities
carried out by the hazardous waste handlers.

Data Source: EPA regional offices, and delegated states.

QA/QC Procedures: All of the systems have been developed in accordance with the Office of
Information Management's Lifecycle Management  Guidance,  which includes data validation
processes, internal screen audit checks and verification, system and user documents, data quality
audit reports, third-party testing reports, and detailed report specifications for showing how data are
calculated.

Data Quality Review:  Regarding AFS, EPA Inspector General (IG) reports in  1997 and 1998
highlighted states' problems with identifying and reporting significant violators of the Clean Air
Act, 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, local areas.

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
                                          22

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differences in data definitions impede integrated analyses. Additionally, there are incomplete data
available on the universe of regulated facilities because not all are inspected/permitted. Further
complicating the issue, significant violator definitions changed for the RCRA program in 1996 and
for the Air program in Fiscal Year 1999. These differences within and across programs make long-
term data comparison impractical

New & Improved Data or Systems: PCS modernization is 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 to develop
statistically valid compliance rates for selected universes of regulated facilities is underway. 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 (PM): Number of EPA inspections conducted.

Performance Databases: Integrated Data for Enforcement Analysis (IDEA) integrates data from
major enforcement and compliance systems, such as the Permit Compliance System (PCS), Air
Facilities  Subsystem (AFS), Resource Conservation and Recovery Act  Information System
(RCRAInfo), and Emergency Response Notification system (ERNS).

Data Source: EPA regional offices.

QA/QC Procedures: All the systems have been developed in accordance with the Office of
Information Management's Lifecycle Management Guidance, which includes data validation
processes, internal screen audit checks and verification, system and user documents, data quality
audit reports, third-party testing reports, and detailed report specifications for showing how data
are calculated.

Data Quality  Review:  Regarding AFS, EPA Inspector General (IG) reports in 1997 and 1998
highlighted states' problems with' identifying and reporting significant violators of the Clean Air
Act, 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, local areas.

Data Limitations: For all systems, there are concerns about quality and completeness of data
and the ability of existing systems to meet data needs. Incompatible database structures/designs
and differences in data definitions impede integrated analyses. Additionally, there are incomplete
data available on the universe of regulated facilities because not all are inspected/permitted.  In
addition, the target is based on a preliminary estimate of the impact of redirecting resources to
the state and tribal enforcement grant program.
                                           23

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New & Improved Data or Systems: PCS modernization is 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 to develop
statistically valid compliance rates is underway.

Performance Measure (PM): Number of criminal investigations

Performance Databases: The Criminal Docket System (CRIMDOC) is a criminal  case
management, tracking, and reporting system. Information about criminal cases investigated by the
U.S. EPA-Criminal Investigation Division  (CID) is entered into CRIMDOC at case initiation, and
investigation and prosecution information is tracked until case conclusion.

Data Source: U.S. EPA-CID offices.

QA/QC  Procedures:  The  system  administrator   performs regularly  scheduled  quality
assurance/quality control checks of the CRIMDOC database to validate data and to evaluate and
recommend enhancements to the system.

Data Quality Review: N/A

Data Limitations: N/A

New & Improved Data or Systems: A new case management, tracking, and reporting system
(Case Reporting System) is currently being developed that will replace CRIMDOC. This new
system will be a more user-friendly database with greater tracking, management, and reporting
capabilities.

Congressional Performance Measure (PM): Number of civil investigations

Performance Databases: Integrated Data for Enforcement Analysis (IDEA) integrates data from
major enforcement and  compliance systems, such as the Permit Compliance System (PCS), Air
Facilities Subsystem (AFS),  Resource Conservation and Recovery Act Information  System
(RCRAInfo), and Emergency Response Notification system (ERNS).

Data Source: EPA Regional offices.

QA/QC Procedures: All the systems have been developed in accordance with the Office of
Information Management's Lifecycle Management Guidance, which includes data validation
processes, internal screen audit checks and verification, system and user documents, data quality
audit reports, third-party testing reports, and detailed report specifications for showing how data
are calculated.
                                         24

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Data Quality Review:  Regarding AFS, EPA Inspector General (IG) reports in 1997 and 1998
highlighted states' problems with  identifying and reporting significant violators of the Clean Air
Act, 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, local areas.

Data Limitations: For all systems, there are concerns about quality and completeness of data
and the ability of existing systems to meet data needs. Incompatible database structures/designs
and differences in data definitions impede integrated analyses. Additionally, there are incomplete
data available on the universe of regulated facilities because not all are inspected/permitted. In
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 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 to  develop
statistically valid compliance rates is underway.

Performance Measure (PM): Conduct EPA-assisted inspections to help build state
program capacity.

Performance Database: Output measure; internal regional tracking  system.

Data Source: Internal regional tracking system.

QA/QC Procedures: Regional and headquarters' managers check information to confirm
accuracy.

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None

Performance Measure (PM): Ensure that enforcement and compliance data is reported in
14 national information systems to provide Federal and state programs accurate and timely
data through which environmental and  human health problems can be identified.

Performance Database: No database; internal tracking of measure.

Data Source: None

QA/QC Procedures: None
                                          25

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Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None

FY 2003 Congressional Performance Measure (PM): Design and develop Phase II of ICIS (i.e.,
modernization of Permit Compliance System) by September 2003.

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 (PM): EPA will respond  to  100% of the following activities:
investigative lease that relate to the security of homeland environment, FBI requests for
investigative, forensic or technical support; and participations in all National Special Security
Events (NSSE) identified by the Office of Homeland Defense, as requested by the Secret
Service.

Performance Databases: The Criminal Docket  System (CRIMDOC)  is a criminal case
management, tracking and reporting system. Information about criminal cases investigated by the
U.S. EPA-CID (Criminal Investigation Division) is entered into CRIMDOC at case initiation, and
investigation and prosecution information is tracked until case conclusion.

Data Source: U.S. EPA-CID offices.

QA/QC  Procedures:   The  system administrator  performs  regularly  scheduled  quality
assurance/quality control checks of the CRIMDOC database to validate data and to evaluate and
recommend enhancements" to the system.

Data Quality Review: N/A

Data Limitations: N/A

New & Improved Data or Systems: A new case management, tracking and reporting system
(Case Reporting System) is currently being developed that will replace CRIMDOC. This new
system will be a more user-friendly database with greater tracking, management and reporting
capabilities.

                                        26

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Coordination with Other Agencies

       The Enforcement and Compliance Assurance  program coordinates closely with the
Department of Justice (DOJ) on all enforcement matters. In addition, the program coordinates with
other agencies on specific environmental issues as described below.

       The Civil Enforcement and Compliance Monitoring program coordinates with the Chemical
Safety and Accident Investigation Board, the Occupational Safety and Health Administration, and
Agency for Toxic Substances and Disease Registry in preventing and responding to accidental
releases and endangerment situations; with the Bureau of Indian Affairs on tribal issues relative to
compliance with environmental laws on Tribal Lands, and with the Small Business Administration
on the implementation of the Small Business Regulatory Enforcement Fairness Act (SBREFA).

       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
specialized criminal environmental training  to federal, state, local, and tribal law enforcement
personnel at the Federal Law Enforcement Training Center (FLETC) in Glynco, GA. NETI also
coordinates with four state associations who provide training for state and local officials.
                                         IX-27

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       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)

 Emergency Planning and Community Right-to-Kriow Act sections 325 and 326 (42 U.S.C. 11045,
"11046)
                                         IX-28

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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-29

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

        A Credible Deterrent to Pollution and Greater Compliance with the Law

Objective: 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)

Promote Compliance Through Incentives
and Assistance.
Environmental Program & Management
Hazardous Substance Superfund
State and Tribal Assistance Grants
Total Workyears
FY 2001
Actuals
$56,396.7
$51,367.9
$899.9
$4,128.9
419.0
FY 2002
Enacted
.$55,768.5
$52,953.9
$605.3
$2.209.3
416.6
FY 2003
Request
$55,872.4
$53,0.43.0
$620.1
$2,209.3
398.1
FY 2003 Req.
v.FY2002Ena.
$103.9
$89.1
$14.8
$0.0
' -18.5
                                   Key Program
                                (Dollars in Thousands)

Administrative Services
Capacity Building
Compliance Assistance and Centers
Compliance Incentives
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
NEPA Implementation
Public Access
Regional Management
Sector Grants
FY2001
Enacted
$677.2
$540.0
$24,228.3
$10,071.8
$3,326.7
$239.7
. $276.4
$10,847.5
$179.3
$8.3
$2,209.3
FY 2002
Enacted
$0.0
$614.0
$25,328.7
$9,810.7
$5,336.7
$296.0
$860.4
$11,280.6
$0.0
$32.1
$2,209.3
FY 2003
Request
$0.0
$929.7
$24,728.7
$9,397.3
$5,724.0
$321.0
$1,004.0
$11,548.4
$0.0
$10.0
$2,209.3
FY 2003 Req.
v. FY.2002 Ena.
$0.0
$315.7
($600.0)
($413.4)
$387.3
$25.0
$143.6
$267.8
$0.0
($22.1)
$0.0
                                       IX-30

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FY 2003 Request

       The enforcement and compliance assurance program uses voluntary compliance incentives
and assistance 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 and correct 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^and information on how to comply, 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 and enable states to provide assistance to
their constituencies.

       In FY 2003, 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, Small Business
Compliance Policy, and Small Communities  Policy as core elements 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 Policy, violations are
discovered through voluntary environmental audits or a compliance management system, and are
promptly disclosed and expeditiously corrected. 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.

       EPA is currently working on many efforts to encourage corporate self-disclosures, including
efforts in the telecommunications, petroleum, and iron and steel industries. As of March 1,2001,
approximately 1,150 companies have disclosed potential violations at 5,400 facilities. The Agency
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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 such
as penalty reductions to use compliance assistance and other voluntary means to identify, disclose,
and correct violations. EPA has worked with stakeholders to modify the policy to encourage greater
participation. As part of its 2003 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 help businesses take advantage of the
flexibility offered by the policy.   EPA plans to revise its Small Communities  Policy  which
encourages states to provide flexibility to small communities seeking assistance in addressing
environmental problems,  EPA wants to identify more incentives for states to adopt the policy and
communities to utilize the policy.

       In FY  2003 the  Compliance Incentives  program will continue to promote the use of
environmental management systems (EMS), including ISO 14001. EMSs offer companies and other
regulated entities an innovative approach to managing their environmental impacts by integrating
environmental concerns into business decisions and practices.  EPA will continue-to work with a
variety of domestic and international stakeholders, including the North American Commission for
Environmental Cooperation, other federal agencies, state and local governments, industry, and non-
governmental organizations, to promote the use of EMSs and to explore ways in which regulators
can encourage the use of EMSs to boost environmental performance.

       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.
This first tier, The National Environmental Achievement Track (NEAT) is a program designed to
motivate and reward companies and other regulated entities that are top environmental performers,
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 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's low inspection priority incentive was the  first flexibility
offered as an incentive to NEAT participants. The enforcement and compliance assurance 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.
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       In addition, the enforcement and compliance assurance program will 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.

       The enforcement and compliance assurance program is funding the enhancement and transfer
of the innovative Massachusetts Environmental Results Program (ERP). ERP is a self-certification
program that  replaces individual  facility permits  with  a set of multi-media  industry-wide
performance standards and a facility-derived annual certification of compliance. ERP has improved
performance for small business sectors and resulted in savings for these business, allowing the State
and EPA to focus resources on priority environmental problem. In FY 2003, the enforcement and
compliance assurance program is dedicating funding and other resources towards this effort. OECA
will also provide technical and legal assistance to states developing an ERP, as well as continuing
work on transferring the successful components of ERP to other sectors.

       The enforcement and compliance program will also work to enhance market incentives for
responsible environmental performance.   Disclosure  of environmental  information  promotes
responsible behavior and ensures that markets value environmental performance. The United States'
federal  securities regulatory  system relies on registrants' full disclosure  of various kinds' of
information, including the registrant's environmental liabilities, to actual and potential shareholders
as the primary means of ensuring informed investments and the proper functioning of the market.
EPA's enforcement and compliance assurance program recently began notifying parties to some
EPA-initiated administrative enforcement actions of their potential duty to disclose the proceeding to
the Securities and Exchange Commission (SEC). In FY 2003, the enforcement and compliance
assurance program will continue to collect data on the extent of disclosures of environmental
liabilities and whether there is an increase in disclosures once EPA began providing notices to
potential SEC registrants.  EPA's enforcement and compliance assurance program will also explore
ways to link potential investors to SEC resources so that they can determine whether registered
companies are adequately disclosing their environmental liabilities.

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, checklist, newsletters,
and web-based clearinghouse  interactive compliance assistance centers.

                                         IX-33

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       Moreover, in FY 2003, the program will continue with activities that more strategically
tailor EPA's role in direct delivery of compliance assistance, to focus on targeted initiatives for
particular sectors, or environmental problems and integrated compliance assurance strategies. The
Agency would like to emphasize its role as a Awholesaler@ 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 best  practices, priority setting, outcome measurement on recently-promulgated
regulations and  new compliance  assistance  materials and  (2)  maintaining  and enhancing  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 to the Clearinghouse within 30 days of receipt. Through public outreach and communication
efforts, including press releases and newsletters, EPA will publicize all major compliance assistance
efforts.  EPA will also continue its efforts to reach out to stakeholders to identify compliance
assistance needs and priorities. EPA will work on the Compliance Assistance Activity Plan to guide
the agency's compliance assistance activities.

       The Sector Facility Indexing Project (SFIP) will be continued in FY 2003. 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 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
continue to develop and improve the Compliance Assistance Center Platform (Platform) to launch
new sector-specific, topical, or geographic Internet-based Compliance Assistance Centers (Centers).
 The Platform provides a suite of comprehensive web-based tools necessary to create new, full-
featured Centers. The Platform will ensure efficient integration of technology and content  and
reduce the financial barriers to creating new Centers. Under a cooperative agreement with EPA, the
National Center for Manufacturing Sciences (NCMS) will develop and operate the Platform  and
collaborate with industry, states, tribes, and compliance assistance providers to establish Centers that
help the regulated community better understand and more efficiently comply with environmental
requirements.  The Platform will support the:  1) improvement or expansion of Platform tools  and
services; 2) development of new Centers; 3)  development and coordination of state regulatory
compliance assistance material.
                                          IX-34

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•      Improvement of Platform Services: NCMS will assess user satisfaction of the Platform
       services over time. Funds will be used to implement suggested services or improve existing
       services.  Funds may also  be  expended to support the  modernization of the Platform
       infrastructure as web-based technologies change.

•      Development of New Centers: Funds will enable industry sectors populated with small
       businesses to develop sector or topic-specific content for  incorporation into new Centers.
       The sector or topic experts will be provided the latitude to develop compliance assistance
       materials that best address their compliance issues and meet the users' needs.

•      Development of State Regulatory Compliance Assistance Material: Funds will enable the
       Platform to not only help small businesses identify and comply with their Federal regulatory
       obligations, but also to address their state regulatory obligations. For example, the Platform
       can identify state regulatory obligations associated with activities that occur at many small
       businesses (e.g., used  oil management, wastewater  treatment).   The  state regulatory
       information can serve as content for multiple new sector- or topic-specific centers.

       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 and work to better
incorporate compliance assistance into the rulemaking process.  EPA will promote  adoption of
innovative technologies,  including waste  minimization.  In  FY 2003, EPA plans to provide
compliance assistance to 475,000  entities.  The Agency will also continue to work with the
compliance- assistance advisory committee in identifying new approaches and directions for the
national compliance assistance program.

       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.  EPA's goal  is for 50% of the
recipients of compliance assistance from funded pilot 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 2003, EPA will continue its programs to assist Tribes
in addressing solid waste management problems.

       The Compliance Assistance 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.
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       EPA has maintained a sector based  multi-media assistance program to States and Tribes
over the past several years to both build and foster innovations in compliance. The Agency focused
this multi-media program in three areas: 1) Data Quality / Data Modernization; 2) Public Access to
Enforcement and  Compliance  Assurance  Data; and  3) Compliance  Assistance Outcome
Measurement. Each of these three funding priorities was selected and designed to enhance State and
Tribal capability and capacity in emerging areas.  EPA competitively awarded funds through grants
or cooperative agreements, in the $50 to $200 thousand range.

       EPA intends to continue supporting the development of performance measurement within
State and Tribal governments. The projected outcomes of the awards will be the enhanced capability
of States and Tribes to assess the effectiveness of their efforts through improved compliance rates;
reductions in pollutants released to the environment and citizens served.

       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 (NEPA) 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 2003 the
Agency will continue to work with other federal agencies to streamline and improve their NEPA
process in such key areas as approvals of highways and airport expansions, disposition of mercury
and chemical weapons stockpiles, hydro-power/nuclear power plant relicensing and other energy-
related projects, flood control and port development projects, and management of national forests
and public lands. In FY 2003, 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 in order to preserve air and water quality, wetlands, aquatic and terrestrial
habitats,  and endangered species; protect  Environmental Justice communities;  and prevent
degradation of other environmental values. The program also manages the Agency's official filing
                                         IX-36

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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 waste water,
water supply and solid waste collection facilities. In FY 2003 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.


FY 2003 Change from FY 2002 Enacted


EPM


•       (-$1,78,000,  -17.8 FTE)  Reduction to support the new multimedia enforcement grant
        program to the states.


Annual Performance Goals  and Measures


Compliance Incentives

In 2003  Increase opportunities through new targeted sector initiatives for industries to voluntarily self-disclose and correct violations on a
            corporate-wide basis.

In 2002  Increase opportunities through new targeted sector initiatives for industries to voluntarily self-disclose arid correct violations on a
            corporate-wide basis.

In 2001  EPA increased opportunities through targeted sector initiatives for industries to use one of the self-disclosure policies.

Performance Measures:                          '        FY2001          FY2002          FY 2003
                                                    Actual          Enacted           Request
Facilities voluntarily self-disclose and correct violations with              1754              500              500      Facilities
reduced or no penalty as a result of EPA self-disclosure
policies.

Increase opportunities for corporate-wide voluntary self-                                                    2      initiatives
disclosure through targeted sector initiatives.



Baseline: EPA developed its Audit/Self-Policing Policy in 1995 to encourage corporate audits and subsequent correction of self-discovered
            violations. That Policy as well as the Small Business Compliance Policy were modified in FYOO. The Agency is working to
            expand the use of the Audit Policy through aggressive outreach to specific sectors. In FY01 the performance measure was
            modified to reach settlements with 500 facilities to voluntarily self-disclose and correct violations. This same measure has been
            carried continued.

Regulated Communities

In 2003  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 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.
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In 2001   EPA continued to expand the compliance assistance program for the regulated community.
Performance Measures:

EPA will complete 80% of the compliance assistance tools
listed in the previous year's compliance Assistance Activity
Plan.

50% of recipients of compliance assistance from funded
assistance pilot projects will increase their understanding of
environmental requirements or facility management practices.
(Core optional)

Number of facilities, states, technical assistance providers or
other entities reached through targeted compliance assistance
(core optional)

Develop compliance assistance tools listed in the Compliance
Assistance Plan.

Number of tribally owned/managed entities reached through
the Agency's targeted compliance assistance.

70% of survey respondents find the Compliance Assistance
Center useful to very useful in helping them understand
applicable environmental regulations

60% of survey respondents took an action, in whole or in
part, due to information found through Center services or
resources.
FY 2001
 Actual
FY 2002
Enacted
FY 2003
Request
                                        80     Percent
                                        50     Percent
    550,000
       203
       249
    500,000
        150
        30
    475,000
        30


        70



        60
                                               Entities
               Tools
                                               entities
                                               percent
                                               percent
Baseline: EPA provides clear and consistent descriptions of regulatory requirements to assure that the community can understand its obligations.
             EPA supports initiatives targeted toward compliance in specific industrial and commercial sectors or with certain regulatory
            requirements. Compliance assistance tools range from plain-language guides, fact sheets, checklists and newsletters. New
            distribution methods include the on-line Clearinghouse. In FY03, EPA is planning to reach 475,000 facilities, states, or technical
            assistance providers through targeted compliance assistance efforts.

Verification and Validation  of Performance Measures

FY2003 Congressional Performance  Measure (PM):  Facilities  voluntarily  self-disclose and
correct violations with reduced or no penalty as a result of EPA self-disclosure policies.

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. There are
separate CCDS Calculation and Completion Checklist required to be filled out at the time the CCDS
is completed.
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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.

FY 2003 Congressional Performance Measure (PM): Number of facilities, states, technical
assistance providers or other entities reached through targeted compliance assistance.

Performance Database: Headquarters manages data on the number of entities reached through
targeted compliance assistance in the Reporting Compliance Assistance Tracking System (RCATS).

Data source: Headquarters and the Regions enter information in RCATS upon completion and
delivery of media and sector-specific compliance assistance including workshops, training, on-site
visits and distribution  of compliance assistance tools. RCATS is designed to capture outcome
measurement  information such as increased awareness/understanding of environmental laws,
changes in behavior and environmental improvements as a result of the compliance assistance
provided.

QA/QC:  Automated data checks and data entry guidelines are in place for RCATS.

Data Quality Review: Information contained in  the RCATS are reviewed by Regional and
Headquarters  staff for completeness and accuracy.

Data Limitations: None

New & Improved Data or Systems: N/A
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 Assistance program works, in addition, with US Customs to ensure safe
import and export of hazardous and toxic 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

                                        IX-39

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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
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. '
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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, 3001-1, 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 Environmental Policy Act (NEPA)

Antarctic Science, Tourism, and Conservation Act (ASTCA)

Endangered Species Act (ESA)

National Historic Preservation Act (NHPA)
                                       IX-41

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Goal 10: Effective Management

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Environmental Protection Agency
2003 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-ll
        Provide Quality Work Environment	,	,	X-21
        Provide Audit and Investigative Products and Services	,..,.,...,..,	X-26

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                           Environmental Protection Agency
           FY 2003 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)
•
Effective Management
Provide Leadership
Manage for Results Through Services,
Policies, and Operations.
Provide Quality Work Environment.
Provide Audit, Evaluation, and
Investigative Products and Services
Total Workyears
FY.2001
Actuals
$445,611.9
$40,847.0
$178,771.0
$177,971.0
$48,022.9
2,129.2
FY 2002
Enacted
$454,968.1
$47,207.9
$186,431.5
$169,367.3
$51,961.4
1,999.2
. FY 2003
Request
$460,963.2
$49,767.0
$201,462.0
$156,141.5
$53,592.7
1,943.7
FY 2003 Req.
v. FY 2002 Ena.
$5,995.1
$2,559.1
$15,030.5
($13,225.8)
$1,631.3
-55.5
Background and Context

       The programs under this Goal are designed to deliver services that enable EPA program
offices to make results-based decisions and meet environmental protection goals in a cost-effective
manner. 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.

       Developing and carrying out these policies and services is accomplished through focus on
front-line customer services and measuring results. EPA routinely consults and coordinates with
industries, communities and other customers and partners to identify emerging issues and develop
strategies to meet shared objectives.  In addition,  work tinder this goal  ensures that EPA's
management systems and processes are supported by independent evaluations that promote
operational integrity and program efficiency arid effectiveness, allowing us to obtain the greatest
return on taxpayer investments.

Work under this goal ensures that EPA's management systems and processes, and its programs are
supported by independent evaluations that promote operational integrity and efficient and effective
programs allowing us to obtain the greatest return on taxpayer investments, and to prevent and detect
fraud, waste and mismanagement.
                                          X-l

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       Activities under this goal support the full range of Agency activities for a healthy and
sustainable environment and include the following areas:

*      Effective vision and leadership;
•      Results-based planning and budgeting;
•      Fiscal accountability;
•      Quality customer service;
•      Professional development of the Agency workforce;
*      Independent evaluation of Agency programs;
•      Investment in core infrastructure;
•      Streamlined business processes;
•      Program integrity;
•   .   Management of human resources;
*      Performance based procurement.

       The performance of this Goal is designed to provide the leadership and services that enable
EPA program offices to reach their environmental protection goals in an efficient and effective
manner. The effectiveness of EPA's management and the delivery of administrative services will
determine, in large measure, how successful we are in achieving the Agency's environmental
mission. The Agency must continue to improve the quality and delivery of its services. Instead of the
traditional command and control strategies; many emerging issues require increased cooperation and
coordination with states, tribes,  industry and other partners. Agency  management and program
operations will be independently evaluated to promote economy, efficiency, and effectiveness, and
to prevent and detect fraud, waste,, and mismanagement.

       EPA is also actively working to align its management objectives more closely with those of
the President's Management Reform Agenda. EPA's strategy for providing effective management
specifically addresses the major challenges facing the federal government as a whole:

•      Strategic Management of Human Capital:  The Agency  is developing a comprehensive
       strategy to attract, develop and retain a workforce that is prepared to meet the Agency's
       future challenges.

•      Competitive Sourcing: EPA submitted its Competitive Sourcing Plan to OMB as required
       and will hold competitions in FY 2002 and FY 2003 to meet the goals of the President's
       Competitive Sourcing Agenda.

•      Improved Financial Performance: The Agency is making significant progress on the
       replacement of its aging  financial  management systems. EPA has also  instituted a
       comprehensive strategy addressing all security-related deficiencies, and is implementing a
       process to eliminate a historical backlog in issuing National Pollutant Discharge Elimination
       Systems Permits (NPDES) by the end of FY 2005.
                                          X-2

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•      Budget and Performance Integration: In FY 2003 the Agency will improve the quality of its
       performance goals and measures and restate them more closely to environmental outcomes
       across its goals.

•      E-Government: (See Goal 7 for the discussion of the Agency's strategy for e-government
       issues.)

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:

•      Developing partnerships with stakeholders to ensure mutual goals are met;

•      Promoting cost-effective investment in environmental protection and public health through
       sound stewardship and responsible results-based management. EPA works to achieve this
       goal  through keeping pace with technological change, meeting accounting standards,
       consulting with customers and stakeholders, and improving delivery of services;

•      Providing responsive and accountable management;

*      Assessing  management challenges and program risks identified by" Congress, oversight
       agencies, EPA's OIG and State and Tribal partners;

•      Committing to manage human resources; foster diversity; and work to secure,  develop,
       empower, and retain talented people to accomplish the Agency's environmental mission;

*      Investing in core infrastructure that promote energy efficiency and green procurement, and
       maintain a safe, healthy, and productive work environment;

•      Implementing streamlined systems and processes in grants and contracts/management;

•      Recognizing the special vulnerability of children and other sensitive sub-populations, such as
       older Americans, to environmental risks and facilitating  the intensified commitment to
       protect children and the elderly.

       EPA will continue to aggressively implement its action plan in support of the Agency's
Strategy for Human Capital. This strategy will enable EPA to attract, retain and further develop a
diverse workforce prepared to meet current and future challenges.  Building on work that  began in
1998, EPA's goals for human capital will focus on implementing a workforce planning model,
completing a comprehensive pay review, and developing delivery systems and processes to enhance
the training and development of EPA's workforce.

                                          X-3

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       In continuing to provide a quality work environment that is energy conscious and values
employee safety and security, the Agency will implement repair and improvement projects at several
EPA facilities. These facilities provide the tools essential to research innovative solutions for current
and future environmental problems and enhance our understanding of environmental risks. In FY
2003, EPA's goals in this area are aimed at reducing  energy consumption at its  facilities by
encouraging the use of new and advanced technologies and energy savings performance contracts.

       By building on the success of its integrated planning, budgeting, and accountability processes
and initiatives, EPA promotes the implementation of 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. EPA collaborates extensively with partners and stakeholders
to forge the partnerships required for shared approaches to meeting tlje challenges of GPRA. EPA
consults with internal customers on fiscal management services to meet their needs for timeliness,
efficiency and quality.

       Audit, evaluation, investigative, and advisory products and services contribute to effective
management by facilitating the accomplishment of the  Agency's mission.  Specifically, audits,
evaluations, and advisory services lead to improved economy, efficiency, and effectiveness in EPA
business practices and assist in the accomplishment of environmental goals. Investigations detect
and deter fraud  and other improprieties which can undermine the integrity of EPA programs and
resources. All Office of Inspector General work is focused on the anticipated value it will  have on
influencing resolution of the Agency's major management challenges, reducing risk, improving
management and program operations, and saving taxpayer dollars while leading to the attainment of
EPA's strategic goals.

       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 decisions on  administrative complaints and
environmental adjudications, respectively, in a timely manner.

Strategic Objectives and FY 2003 Annual Performance Goals

Provide Leadership

Manage for Results Through Services, Policies, and Operations

•      Strengthen EPA's management services in support of the Agency's mission while
       addressing the challenges included in the President's Management Agenda.
                                          X-4

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Provide Quality Work Environment

Provide Audit and Investigative Products and Services

•      Improve environmental quality and human health by recommending 75 improvements
       across Agency environmental goals, identifying and recommending solutions to reduce
       20 of the highest environmental risks, and identifying 20 best environmental practices.

Manage for Results Through Services, Policies, and Operations

Highlights

       EPA's efforts to meet what has been called the "Federal human resources crisis" has led to
the development of a human resources strategic  plan entitled Investing in Our People, EPA's
Strategy for Human Capital. The Agency is committed to improve recruitment of individuals with
mission-critical scientific  and technical skills; to enhance training and development of senior
executives and managers;  and to improve retention of a diverse and high performing workforce.
Several components of EPA's human capital strategy are currently underway or in development and
include the  EPA Intern  Program; the Mid-level  Development Program; the Management
Development Program; and the SES Candidate Development Program, In FY 2003, the EPA will
link these efforts to the Agency's strategic goals through completion of a comprehensive workforce
planning model. Combined, these efforts will provide a comprehensive and dynamic approach to
identifying, managing and developing the skills arid competencies of EPA's future workforce.

       The Agency continues to strengthen pre-award and post-award management of assistance
agreements, and continues  its transition toward electronic execution of grants internally. In addition,
EPA will increase the number of contracts that are performand>based and 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.

       Agency management  provides vision,  leadership, and conducts policy oversight for all
Agency programs. Sound management principles,, practices, results-based planning and budgeting,
fiscal accountability, quality customer service, rational policy guidance and careful stewardship of
our resources are the foundation for everything EPA does to advance the protection of human health
and the environment. The effectiveness of EPA's management will determine, in large measure, how
successful we will be in pursuit of the other goals  identified in the Agency's annual plan.

       In FY 2003, EPA will build on its progress in linking resources to environmental results
through goal-based fiscal resource management. The Agency will provide more  useful cost
accounting information for environmental decision making. EPA will make continued progress in
assessing the environmental results of its program activities. Highlights of expected Agency FY
2003 achievements in effective management are:
                                         X-5

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•      Expand Agency and State partner -capacity to manage for results through support for the
       improvement of the quality and use of performance measures.

•      Meet new Federal requirements for timely financial information and 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.

•      Continue efforts to provide  decision-makers  with integrated cost and  performance
       information to support results-based management and progress on environmental priorities.
       FY 2003 efforts will focus on:

       • •     completing the implementation plan for a new payroll system that will reduce costs
             and burdens,
    •   ••     making recommendations for replacing  EPA's integrated financial management
             system,
       ••     further  developing desk-top access to  key cost accounting and  performance
             information.

       The Office of Inspector General will conduct and supervise independent and objective audits,
evaluations, and investigations relating to Agency management and program operations, and will
provide advisory and assistance services. The OIG will also review and make recommendations
regarding existing and proposed legislation and regulations impacting the Agency. In addition,
program evaluations/audits and four other types of audits will be conducted: contract, assistance
agreement, financial statement, and systems audits. Four types of investigations will be performed:
program integrity, assistance agreement, contract and procurement, and employee integrity. The OIG
Computer Crimes Unit will conduct investigations of computer intrusions, support the OIG and
Agency personnel as a Penetration Testing Laboratory, and provide a Forensics Laboratory to assist
with OIG 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.

       In FY 2003, the OIG will also receive, analyze, and facilitate the resolution of citizen's
complaints regarding Agency programs and activities, as part of the Ombudsman function. The
Ombudsman performs the OIG Hotline function,  and is  responsible  for the review of public
complaints about Agency programs and  activities.

       The Agency's building operations and new construction budget ensures a healthy, safe and
secure work environment for its employees and integrates energy conservation, green procurement,
and state-of-the-art technology into its daily activities. In FY 2003, the Agency will expand its focus
on improving EPA's infrastructure by implementing repair, improvement and energy conservation
projects at several EPA facilities.  These facilities provide the tools  essential for researching
                                          X-6

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innovative  solutions to current  and future environmental problems and for enhancing our
understanding of environmental risks.

       In FY 2003 the Agency will also respond to an increased need to provide a secure working
environment for all its employees. The EPA is undertaking a comprehensive security assessment of
all EPA facilities nationwide, and will upgrade existing interior and exterior security features as
necessary, and provide a more comprehensive and better-equipped security force.

       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 FY2003, the Agency will develop Comprehensive School Environmental Health Guidelines. 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 in low income minority neighborhoods, where children
living in older housing are much more likely to be exposed to lead. Additionally, the Office of
Children's  Health Protection will launch a new initiative to improve  the  Agency's base of
knowledge regarding the link between environmental exposure  and senior citizens' health through
an analysis of the issues, and in consultation with EPA Programs and the Department of Health and
Human Services, will develop a draft action strategy, detailing research needs and other actions that
are necessary to safeguard elders from adverse health effects from environmental threats.

External Factors

       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 goals 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 investigative cases.
                                           X-7

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                Effective Management

Objective: Provide Leadership

      Provide vision, national and international leadership, executive direction, and support for all
Agency programs,

                                 Resource Summary
                                (Dollars in Thousands)

Provide Leadership
Environmental Program & Management
Total Workyears
FY2001
Actuals
$40,847.0
$40.847.0
283.2
FY 2002
Enacted
$47,207.9
$47,207.9
306.8
FY 2003
Request
$49,767.0
$49,7.67.0
311.4
FY2003Req.
v. FY 2002 Ena.
$2,559.1
$2.559.1
4.6
                                    Key Program
                                 (Dollars in Thousands)

Administrative Law
Administrative Services
Childrens Health, Program Development and
Coordination
Civil Rights/Title VI Compliance
Environmental Appeals Boards
Executive Support
Facilities Infrastructure and Operations
Immediate Office of the Administrator
Intergovernmental Relations - OA
Legal Services
Management Services and Stewardship
Regional Management
FY 2001
Enacted
$2,567.3
$298.3
$6.036.9
$9,140.1
$1.553.1
$2,752.1
$2.494.4
$3.994.1
$1,847.8
$3,369.4
$0.0
$6.780.3
FY 2002
Enacted
$2,684.0
$0.0
$6,099.0
$10.143.6
$1.667.3
$3.113.0
$5.226.9
$4.175.9
$2.167.4
$3,979.2
$405.1
$7,546.5
FY 2003
Request
$2.869.8
$0.0
$6.670.9
$11,770.7
$1.737.7
$3.037.6
$4.492.7
$4.343.7
$2,292.7
$4.360.4
$430.6
$7.760.2
FY 2003 Req.
v. FY 2002 Ena.
$185.8
$0.0
$571.9
$1.627.1
$70.4
($75.4)
($734.2)
$167.8
$125.3
$381.2
$25.5
$213.7
FY 2003 Request

       Americans are challenging their leaders  to adopt tough but achievable  goals for the
environment, and to provide institutions and individuals with the tools and flexibility needed to
achieve these goals  in cost-effective ways.  The Agency will provide the vision and leadership
                                         X-8

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needed to accomplish these objectives, and to enable the EPA to meet its commitments to protect
public health and the environment in FY 2003.

       In order to fulfill its mission fully and effectively, the Agency requires a strong internal
support structure. This includes personnel, administrative,  budget, planning,  integrity, ethics,
computer support,  information  management security,  and financial management support. The
Agency will assist its managers and supervisors in hiring a qualified and diverse staff in accordance
with established affirmative action and human resource management programs and principles. This
Agency must also provide the expertise, reports, financial analyses, program analyses, and related
information that its managers need to make decisions, understand the resource implications of their
management decisions; and to ensure that the Agency operates within its authorized funding levels.
Automated data processing and information resource management support will also be provided to
meet increasing information resource  needs, as well as to develop and  implement information
management security policies needed to protect electronic data.

       In FY 2003, policy direction and guidance will be provided within the Agency on equal
employment opportunity, civil rights  and diversity issues. The Agency will  continue to work
diligently to process all Title VII internal employment discrimination complaints. Appropriate
training will be provided to Office of Civil Rights (OCR) staff to conduct Title VII counseling and
investigations, EPA will continue to 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, women,  and persons with
disabilities in the Agency's workforce. Finally,- the external compliance, including Title VI of the
Civil Rights Act of 1964, will  prohibit discrimination in programs and activities that receive
financial assistance from EPA. OCR will also issue Title VI guidance on limited English proficiency
and develop a Title VI compliance review program.

       The  Environmental Appeals Board  will issue final Agency decisions in environmental
adjudications on appeal to the Board. The right of affected persons to appeal these decisions within
the Agency is conferred by various statutes, regulations and constitutional due process rights. These
decisions are the end point in the Agency's administrative enforcement and permitting programs.

       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 their use, in recent years, of alternative
dispute resolution techniques to facilitate the settlement of cases  and, thereby avoid more  costly
litigation.

       In FY 2003, the Agency will strengthen 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, and 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

                                          X-9

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tobacco smoke, prevalent indoor allergens and ambient air pollution. The Agency will continue
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, and
international organizations to incorporate children's environmental health into their programs and
activities. Additionally, the Agency will launch a new initiative to improve the Agency's base of
knowledge regarding the link between environmental exposure and senior citizens' health.

FY 2003 Change from FY 2002 Request

EPM

•   (+$1,107,800) This request reflects an increase to fully fund the Office of the Administrator's
    workforce costs, including increased workforce costs and worky ears in the Office of Civil Rights
    that the Agency has  experienced difficulties in  filling in  FY2002. It is anticipated that all
    positions will be filled in FY2003.

•   (+$571,900 and +3.0 FTE) This increase reflects additional support for the Office of Children's
    Health Protection to  address children's issues and to launch a new initiative to improve the
    Agency's base of knowledge regarding the link  between  environmental exposure and senior
    citizens' health.

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.  About 15  Federal cabinet departments, agencies and White House councils are
members of the Task Force. EPA performs the staff work for the Task Force.

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-10

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                Effective Management

Objective: 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 responsibilities and mandates.

                                 Resource Summary
                                (Dollars in Thousands)

Manage for Results Through Services,
Policies, and Operations.
Environmental Program & Management
Hazardous Substance Superfund
Leaking Underground Storage Tanks
Oil Spill Response
Science & Technology
Total Workyears
FY 2001
Actuals
$178,771.0
$149,156.6
$28,781.4
$699.3
$6,2
$127.5
1,492.2
FY 2002
Enacted
$136,431.5
$152,852.9
$32,213.7
•$1,143,4
$44.7
$.176,8
1.294.0
FY 2003
Request
$201,462.0
$164.663.0
$35,352.7
$1,194.4
$53.2
$198.7
1,244.6
• FY 2003 Req.
v. FY 2002 Ena.
$15,030.5
$11,810.1
$3,139.0
$51.0
' $8.5
$219
-49.4
                                    Key Program
                                (Dollars in Thousands)


Brownfields
Environmental Finance Center Grants (EFC)
Facilities Infrastructure and Operations
Legal Services
Management Services and Stewardship
Planning and Resource Management
Public Access
Regional Management
Regulatory Development
FY2001
Enacted
$0.0
$1.249.0
$52,174.8
$4,327.0
$62,643.5
$47,567.1
.$0.0
$7,587.4
$1.435.2
FY 2002
Enacted .
$0.0
$2,000.0
$50,675.0
$4,614.5
$60,875.1
$56,295.3
$1,429,0
$8.934.6
$1,608.0
FY 2003
Request
$231.1
$2,000.0
$54,819.0
$4,964.6
$67.328,8
$62.791.1
$0.0
$7.725.1
$1,602,3
FY 2003 Req.
v. FY 2002 Ena
$231.1
$0.0
$4,144.0
$350.1
$6.453.7
$6,495.8
($1,429.0)
($1,209.5)
($5.7)
                                        X-ll

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FY 2003 Request

       In FY 2003, Agency activities to support results-based decision-making and sound financial
stewardship include the following activities: Strategic Planning, Annual Planning and Budgeting,
Financial Services, Financial Management, Analysis, and Accountability. Through these activities
the Agency  provides executive direction for the  Agency's  budget,  financial, and resource
management functions; develops and manages 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 coordinates 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
turn, provide training, expert advice, education, and analysis to states, local communities and small
businesses. As part of Agency efforts to provide the American public with innovative, market-based
programs and services, EPA actively reviews programs as part of its Federal Activities Inventory
Reform Act process.

       A key component of this objective is  the Agency's management of contracts and grants
which are used to support its environmental mission. The Agency  will ensure a high level" of
integrity and accountability in the management of grants and contracts to protect Federal funds from
waste, fraud, and  abuse so taxpayers receive  the full benefit of the government's investment in
environmental protection. The Agency will continue to strive toward better pre-award and post-
award management of assistance agreements. The Agency will continue efforts to improve
monitoring and oversight of grants, including continued emphasis on onsite reviews of selected
grantees. In addition, in FY 2003, EPA will strengthen our relationship with our State environmental
partners by utilizing the Integrated Grants Management System (IGMS) to electronically award 15%
of all State grants.  These efforts will enhance  the  management  of our  grants to  support
environmental projects and continuing environmental programs.

       EPA's environmental information efforts require the Agency to ensure that it's keeping pace
with the states in  the areas of data collection, management and utilization. Consequently, in FY
2003, EPA will emphasize its new state data management grants, both from an information
technology and a 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. Regions will  implement Agency information resources management policies in
areas such as data and technology standards, central data base services, and telecommunications.
Regions will also operate Regional Centers for Environmental Information (RCEI) in both regional
offices and laboratories. In addition, regional information technology organizations will provide
support to local program offices in the areas of hardware requirements determination, software
programming and applications, records management systems, data base  services, LAN activities,
intranet web design and desktop support.
                                          X-12

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      Resources within this objective are aligned with four of the five initiatives outlined in the
President's Management Reform Agenda: Strategic Management of Human Capital, Competitive
Sourcing, Improved Financial Performance, and Budget and Performance Integration. The fifth
initiative, E-Government, is discussed in Goal 7.

Strategic Management of Human Capital

      The Government Accounting Office (GAO) has declared human capital a government-wide
high-risk area and EPA has made it a priority by declaring it an Agency level weakness. In July
2001, after extensive review of EPA's human capital strategy, GAO recommended that EPA allocate
sufficient resources and senior-level management attention to implement the initiatives outlined in
its human capital strategy.

   •  In FY 2003, the Agency will increase investment in its human capital efforts to ensure that
EPA has the skills base and diverse workforce to accomplish its mission. Resources will be used to
develop and  implement a comprehensive workforce planning model. This  is an  essential
management tool needed Agency-wide to link human capital planning to the Agency's resource and
planning processes and mission. In addition, EPA will complete a comprehensive pay review. This
review would focus on the impact of Federal pay systems on EPA-specific recruitment, retention,
and skills mix issues. Other key efforts in FY 2003 include development of a streamlined internal
policy manual, an  interactive website, and establishment of an On-Line University. The On-Line
University will enable the Agency to purchase approximately 2,000 course licenses to deliver on-
line training to provide employees computer-based desktop training 24 hours a day, 7 days a week.

      EPA's efforts in FY 2003 will build on  work that began in June  1998, when the Agency
initiated a Workforce Assessment Project (WAP) to identify the competencies needed to meet the
agency's current and future missions. While the WAP's completion was an important first step in
EPA's human capital planning efforts, it identified only general competencies for all EPA employees
and did  not determine  the number of employees with the identified competencies needed either
agency-wide, or in individual organizational or geographical units.

      EPA is allocating significant resources to strengthen and maximize existing programs such as
hiring at least 20 additional interns  using the EPA intern program, development programs for all
levels of employees, and a Senior Executive Service (SES) development program to ensure that at
least 30  SES candidates are certified by Office of Personnel Management (OPM) for placement in
vacant SES positions,

      These efforts constitute key components in Investing in Our People, EPA's Strategy for
Human Capital 2001 through FY 2003 and represents EPA's commitment to addressing GAO's
concerns over the potential loss of leadership continuity, institutional knowledge, and expertise in
the SES ranks.

Competitive Sourcing
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       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 FY 2003. The review
will ensure EPA maintains an effective plan to competitively source activities which are identified as
being commercial  in nature,  to determine  whether they are more efficiently and effectively
performed in-house or by the private sector.

       In FY 2003, the Agency will increase the number of contracts that are performance-based,
improve electronic commerce capabilities, and enhance the education of its contract workforce. The
Procurement Executive Council (PEC) has established a  Federal-wide goal in FY 2003 that 30
percent of contracts be performance-based.  EPA intends to meet this  goal by converting more
program requirements to performance-based contracting, increasing training on how to use this type
of contract, and providing outreach to the programmatic areas with percentage target.

       In addition, the Agency will meet the President's initiative on electronic commerce by.

•      extending the use of electronic signatures;

•      developing  interfaces with all current Agency-wide systems involved in the buying and
       paying process;

•      evaluating and working to eliminate paper-processing in the  acquisition process;

•      completing development and implementation of the Program Office Interface (POI), which
       will allow EPA program managers to electronically manage their contracts; and

•      posting solicitations to the General Services Administration's (GSA) FEDBIZOPPS system
       as the single point of entry  for vendors to government purchasing,

       To meet the President's goal that 90 percent of all acquisition employees meet mandatory
training requirements by 2005, the Agency  will improve the qualifications and education of its
contract workforce by providing appropriate training opportunities and establishing and enforcing
mandatory training requirements.

Improved Financial Performance

       In FY 2003, the Agency will develop innovative approaches  to meet new Federal financial
management challenges and  continue to improve the delivery  of core financial  management
customer services. EPA's financial management innovations are focused on providing Agency
decision-makers with useful, reliable, and timely cost information associated with key results-based
environmental information. By integrating  cost and performance information, the Agency can
further improve its capacity to manage for results and better support environmental priorities.

       EPA will realize the benefits of integrated cost and performance information through its
work to modernize and integrate its two major financial information systems: EPA's payroll and

                                          X-14    .

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central financial management systems. In addition, the replacement of these systems will support
requirements  to provide more frequent financial  statement  information to maintain Agency
unqualified financial audit opinions, a key indicator of sound stewardship. EPA's investments to
modernize mission-critical financial systems are designed to  improve financial accountability,
strengthen internal controls, increase data accessibility, reduce costs, simplify procedures, and
strengthen information security. Specific actions in FY 2003  will make significant progress in
modernizing key financial management systems, and are consistent with Agency information
technology investment review processes. Actions include completion of the implementation plan for
replacing EPA's legacy payroll system, and making recommendations for replacing EPA's
integrated financial management system (IFMS). These recommendations will be based on the
results of the preliminary analysis and evaluation of options.

       The new core financial system will use a  commercial off-the-shelf system, tested and
certified by the federal Joint Financial Management Improvement Program, to improve financial
accountability, ensure compliance with government accounting standards, and produce sound
financial statements. Work to develop  a new system includes financial  operations analysis, and
review of web-based, user friendly interfaces and decision support tools.

       EPA is using commercial-off-the-shelf software to modernize and integrate its Agency-wide
payroll system. The new  system will automate several labor intensive  payroll  processes
(timekeeping, labor distribution and redistribution); streamline payroll processing and accounting
functions; meet evolving Federal requirements for cost accounting; re-engineer business processes;
improve compliance with security and privacy requirements; and provide managers^ supervisors and
employees with ready access to data for analysis.

       EPA is researching user-friendly reporting tools to provide desktop access to financial data in
ways that can be  tailored to individual programmatic needsc The tools will work with EPA's
Financial Data Warehouse to allow Agency decision-makers  to integrate cost and performance
information from a range of Agency data systems into timely, accessible reports. The Agency will
also continue  development of systems to help EPA customers  work efficiently and reduce
administrative burden. For example, grantees will be paid through Treasury's Automated Standard
for Application Payments (ASAP) system and EPA travelers  will  have a completely automated
expense authorization and payment process from start to finish.

       While the Agency is keeping pace with new technology, it is also developing policies and
streamlining processes to improve services and strengthen resource stewardship. The Agency is
working to gain higher efficiencies in financial services by shifting transaction activities to financial
centers and revising financial policies to meet today's higher accounting standards and facilitate
implementation of .GPRA. EPA is also continuing its efforts to assure that  Agency budgeting
processes meet emerging priorities and satisfy Agency and Congressional requirements.

Budget and Performance Integration

       The FY 2003 request includes resources for the Agency  to develop new capacities to

                                         X-15

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improve the quality and use of performance measures. This work is part of EPA's overarching
endeavor to develop results-based goals and evaluate the Agency's work in terms of its impact on
human health and the environment. The Agency has integrated planning, budgeting, analysis, and
accountability (PBAA) processes to support EPA's implementation of GPRA. In FY 2003, EPA
plans to support program efforts to develop more outcome-based strategic and annual goals and
measures, develop new sources of performance data, improve the quality and usability of existing
data sources, and develop tools to set strategic priorities and track performance.

      These objectives will be achieved through targeted efforts with EPA programs and state
partners. This  effort  will  support results-based management through a  variety of potential
approaches such as the following: addressing data gaps to develop more outcome oriented measures
and goals, increasing state use of environmental data and performance information in environmental
policy  and management decisions, promoting integration  of information  on environmental
conditions with other management systems  used to make environmental policies and management
decisions,  supporting development of statistical models for  linking  program outputs and
environmental  improvements, and developing best practices and case studies based on  current
successful EPA or state environmental management efforts.

      As part of these efforts, EPA will continue to consult with its partners and stakeholders
(states, tribes, local government, other federal agencies, environmental associations, industry groups,
the EPA Science Advisory Board) and the Congress and OMB. EPA will work to link annual plans
to long-term goals and objectives of the Agency. Our continued work with state governments
through the Environmental Council of the States (ECOS) and tribal governments, will ensure
collaboration and cooperation 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 semi-annual reports to Congress
on audits, audit resolution activities, and support for audit coordinators throughout EPA. EPA will
develop the Agency's consolidated Annual Report under GPRA in FY 2003. This report will be
developed in context of comments made on the Agency's FY 2002 report by Agency customers,
partners and stakeholders. The Annual Report provides the Congress and the public a comprehensive
picture of its FY 2002 program and financial performance related to the achievement of annual
performance goals and measures described in the Agency's revised final FY 2002 Annual Plan. This
report also meets requirements for reporting on management integrity, audit management, and
financial statements.
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FY 2003 Change from FY 2002 Enacted

MULTI-APPROPRIATION

•  (+$3,200,000 EPM and +$800,000 SF) With this increase in non-payroll resources, EPA will
   fulfill the FY 2003 phase of modernizing major Agency financial systems to provide decision-
   makers with integrated cost and performance information. FY 2003  efforts will focus on
   completing the Agency payroll implementation plan that will reduce costs and burdens, making
   recommendations for replacing EPA's integrated financial  management system,  and further
   developing desk-top access to key cost accounting and performance information.

EPM

•  (+$500,000) Reflects an increase  in funding for  the Agency's Human Capital Strategy to
   complete a comprehensive workforce planning model. Other initiatives  include a pay review,
   an interactive web-site, and establishment of an On-Line University.

•  (+$900,000) This increase in non-payroll resources is to expand Agency and State partner
   targeted efforts to manage for results. The initiative will focus on tools, technical support, data
   and other resources for the improvement of the quality and use of performance measures.

•  (+$2,048,700) This reflects  a national increase in the transit subsidy to accommodate the
   maximum monthly allocation increase to .$100, as well as an anticipated increase in transit
   subsidy subscribers (recipients) due to Headquarters consolidation.

•  (-$3,933,500)  Resources, dollars and FTE, associated with rent are allocated in proportion to
   Agency-wide FTE located in each goal, objective.   Resources, dollars and FTE, associated
   with utilities, security and human resource operations are allocated in proportion to
   Headquarters FTE located in each goal, objective.  Changes reflect shifts in FTE between
   goals and objectives. Resources, dollars and FTE, associated with contracts and grants are
   allocated in proportion to Headquarters'  contracts and grants resources located in each goal,
   objective. Changes in these  activities reflect shifts in resources between goals and
   objectives. (Totalchanges - rent:  -$3,569,400, utilities:+$3,468,000, Security: -
   $9,103,900. Nominal increases/decreases occurred in human resource  operations, grants
   and contracts related activities.)

Superfund

•      (-$ 1,836,800) Resources, dollars and FTE, associated with rent are allocated in proportion
       to Agency-wide FTE  located  in each goal, objective.    Resources, dollars and  FTE,
       associated with utilities, security and human resource operations are allocated in proportion
       to Headquarters FTE located in each goal, objective. Changes reflect shifts in FTE between
       goals and objectives. Resources, dollars and FTE, associated with contracts and grants are
       allocated in proportion to Headquarters' contracts and grants resources located in each goal,

                                          X-17

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       objective.  Changes in these activities reflect shifts in resources  between goals and
       objectives.  (Total changes - rent:  -$3,569,400,  utilities:  +$3,468,000,  Security:  -

       $9,103,900. Nominal increases/decreases occurred in human resource operations, grants
       and contracts related activities.)


Annual Performance Goals and Measures


Strengthen EPAs Management

In 2003  Strengthen EPA's management services in support of the Agency's mission while addressing the challenges included in the President's
           Management Agenda

Performance Measures:                               FY2001         FY2002         FY2003
                                               Actual          Enacted         Request
Number of Agency offices using the workforce planning                                              5     Offices
model which identifies skills and competencies needed by the
Agency for strategic recruitment, retention and
developmental training.

Percentage of total eligible service contracting dollars                                                30     Percent
obligated as performance based in FY2003.

Agency audited Financial Statements are timely, and receive                                           one     Finan statement
an unqualified opinion.



Baseline: Based on FY 2002 performance, baselines are: Zero for number of Agency offices using the workforce planning model; 20% for
           performance-based contracts, and an unqualified opinion for financial statements.

Verification and Validation of Performance Measures


Performance Measure: Number of Agency offices using the workforce planning model which

identifies skills  and competencies needed by the Agency for strategic recruitment, retention

and developmental training.                               .,-.


'Performance Database: No database. Agency staff track manually.


Data Source: Agency staff.


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 obligated as

performance based.


Performance Database: The  Integrated  Contracts Management System (ICMS),  which has an



                                             X-18

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identifier to show which contracts are performance based and the dollars associated with it.

Data Source: Agency personnel inputs data into ICMS.

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: ICMS was updated in order to track this performance measure

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) 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 of 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 Authorities

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
Federal Acquisition Regulations (FAR), Contract law, and EPA's Assistance Regulations (40CFR
Parts 3.0, 31, 35, 40, 45,46, 47)
Clinger-Cohen Act
Paperwork Reduction Act,
Freedom of Information Act
Computer Security Act

                                        X-19

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Privacy Act
Electronic Freedom of Information Act
Comprehensive Environmental Response, Compensation and Liability Act
Brownfields Revitalization and Environmental Restoration Act
                                        X-20

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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                                Effective Management

Objective: 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)

Provide Quality Work Environment.
ALLOCATION ACCT
Building and Facilities
Environmental Program & Management
Hazardous Substance Superfund
Leaking Underground Storage Tanks
Oil Spill Response
Rereg. & Exped. Proc. Rev Fund
Science & Technology
Total Workyears
FY 2001
Actuals
$177,971.0
$24.988.5
$28,275.5
$80.410.7
$26.434.6
S237.5
$76.2
$1,890.0
$15.658.0
17,7
FY 2002
Enacted
$169367.3
$0.0
$25,318,0
$96.535.6
$22.595,8
$1.013.9
$454.1
• $0.0
$23,449.9
24.3
FY 2003
Request
$156,141.5
$0.0
$42,918.0
$80.105,9
$21.608.3
$1.018.4
$451.9
$0.0
$10,039.0
15.4
• FY 2003 Req.
v. FY 2002 Ena.
($13,225.8)
$0.0
$17.600.0
($16,429.7)
($987.5)
$4.5
($2,2)
$0.0
($13.410.9)
-8.9
                                    Key Program
                                (Dollars in Thousands)


Administrative Services
Facilities Infrastructure and Operations
Homeland Security
Legal Services
Management Services and Stewardship
Regional Management
Regional Program Infrastructure
Superfund Remedial Actions

FY 2001
Enacted
$612.4
$115.272,8
$0.0
$124.9
$8.092.8
$20.889.1
$6.177.1
$1.368.8

' FY 2002
Enacted
$0.0
•$106.936.9
$30,040.0
$140.2
$5.963.9
$18,807,3
$6.132.2
$1.346.8

FY2003
Request
$0:0
$100.221.3
$19.000.0
$150.6
$8.974.0
$20-416.7
$6,032.1
$1.346.8

FY 2003 Req.
v. FY 2002 Ena.
$0.0
($6,715.6)
($11.040.0)
$10.4
$3,010.1
$1.609.4
($100.1)
$0.0

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FY 2003 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 to research innovative solutions to current and future
environmental problems and enhancing our understanding of environmental risks. In addition, EPA
is well engaged in reducing energy use needed to operate these facilities. In FY 2003, the Agency
will  continue to improve operating  efficiency  and encourage the use of new  and advanced
technologies and energy savings performance contracts.

       In FY 2003, to enhance EPA's program offices and to achieve their critical mission-related
activities and to  ensure quality  and safe working environments for all Agency employees, the
Agency intends  to redirect resources for infrastructure, increased  security and  repair and
improvement projects. EPA conducts its business in 146 facilities nationwide which have capital
asset value that exceeds $.1 billion. In the past several years, the Agency has gradually moved from
rented/leased facilities to government-owned facilities. As  a result, the Agency has had to absorb
greater operational and infrastructure maintenance costs which were formerly covered under rent
agreements. EPA is currently spending 0.3 percent of the replacement value of its real estate assets
on building repairs and improvements. The industry recommended level of 2  - 5 percent of the
replacement value.

       The FY 2003 budget for the Agency's building operations and new construction will support
existing infrastructure requirements that ensure healthy, safe, and secure work  environments that
reflect the pollution prevention goals of EPA and help fulfill the scientific and functional program
requirements. Two  examples of scientific/technological  projects and improvements to meet
regulatory requirements and emerging national security needs are described below.

•      The Agency facility in Athens, Georgia will obtain an  ecological  exposure greenhouse
       addition as well as a soil/atmospheric interaction laboratory which will enable the Office of
       Research and Development (ORD) to conduct various ecological exposure process research
       studies and to demonstrate cost-effective clean up procedures of various military and the
      • Department of Energy (DOE) facilities and Superfund  sites. This project will help the
       Federal government save money by avoiding excessive reliance on expensive field studies
       and by establishing greater efficiencies in remedial activities. ORD will  use the interaction
       laboratory to conduct specialized research studies for use in multimedia model development
       and testing and chemical leaching assessment. This lab will increase the type and number of
       experiments that  can be conducted at a  lower expense than using alternate  lease
       arrangements.

•      At the new Consolidated Laboratory at Research Triangle Park (RTP), supplemental power
       for the Heavy-Duty Dynamometer Bay will enable its automobile engine emissions testing
       facility to simulate a full range of actual operating conditions. With this additional power,
       research and development teams will be able to satisfy new laws that require testing of four
       wheel drive vehicles. Also at RTP, we plan to provide two additional clean-animal rooms.

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       With growing environmental concerns about genetic engineering technology, transgenic
       animals have rapidly become important subjects for identifying sub-populations that are
       genetically susceptible to environmental toxicity. This project will greatly enhance the lab's
       ability to use this powerful new research technology as a way to improve the Agency's risk-
       assessment process.

•      In the wake of attacks upon the Pentagon and World Trade Center, the President identified
       the security of Federal facilities and personnel as a national priority. A total of $19 million is
       requested to complete comprehensive security assessments of all EPA offices, laboratories
       and other support facilities begun in FY 2002, and to continue the enhancement of security
       measures. Examples of improvements include additional guards,  blast  resistant glass,
       exterior  barriers,  locks, motorized gates,  cameras, and  other monitoring equipment.
       Enhanced security measures will remain an important component of the Agency's facility
    •   management strategy in the years ahead.

       Resources in this objective will also be used to comply with Executive Orders (E0)13149,
Greening the Government through Federal Fleet and Transportation Efficiency and EO 13123,
Greening the Government through Efficient Energy Management.

       EO13149 requires that by FY 2005, petroleum use be 20 percent lower than that in  1999.
EPA will direct resources, to wards acquiring alternative fuel  vehicles and more fuel-efficient
passenger cars and light trucks. EO 13123 requires  a 20 percent reduction of energy consumption
(per square foot or per unit production) in laboratory facilities by FY 2005. The Agency will attain
this goal through several initiatives including comprehensive facility energy audits, sustainable
building design in Agency construction and alteration projects, energy savings performance
contracts to achieve energy efficiencies, the use of off-grid energy equipment, energy load reduction
strategies, and the use of Energy Star products and buildings.

       In addition, in FY 2003, funds will be used to promote EPA's "Laboratories for the 21st
Century" program  which encourages energy conservation and pollution prevention  at labs in
partnership with industry and state and local governments. The Agency will continue to sponsor an
annual conference with the Department of Energy'(DOE) which provides an international forum for
private and public sector laboratory designers, engineers, owners, and operators to discuss and learn
about new ways of achieving low-energy use and high-performance laboratories. Over 400 attendees
are expected for the FY  2003 conference with DOE. Innovative energy efficiency results are
expected to be showcased at several EPA labs, such as Kansas City, Kansas and Ada, Oklahoma.
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FY 2003 Change from FY 2002 Enacted

MULTI-APPROPRIATION

•   (-$2,923,500 EPM, -$250,300 SF, -$8,867,000 S&T, and -$3,900,000 B&F) Reflects the
    ramping down of the New Headquarters Project as we complete consolidation, and of the new
    Research Triangle Park, NC complex as it is completed. Resources are being redirected to fund
    core Agency requirements (utilities, security, repairs and improvements, and energy efficiency
    initiatives).

•   (-$18,000,000  EPM, -$4,540,000 S&T, and  +$11,5000,000 B&F)  The FY 2003 request,
    combined with resources provided in the F Y 2002 supplemental, provide necessary funding to
    complete the  nation-wide  security  assessment  of all  EPA  facilities,  and  for security
    improvements, where necessary,  as begun in FY 2002. Examples of security enhancements
    include increased guard services, and interior and exterior countermeasures (e.g. identification
    badging systems, blast-resistant windows, barriers, gates and locks), at EPA facilities.

•   (+2,629,900) Reflects a redirection of resources for Energy Efficiency projects for the Agency's
    facilities, in fulfillment of Executive Order 13123, Greening the Government through Efficient
    Energy Management. The EPA is  a  government leader for energy-saving innovations and
    initiatives for offices, laboratories and other facilities.

B&F

•   (+$10,000,000)  Reflects a  redirection of resources  for infrastructure  and Repair  and
    Improvement projects.

Annual Performance Goals and Measures

Energy Consumption Reduction
In 2003  By 2003, EPA will achieve a 15% energy consumption reduction at its 21 laboratories.
In 2002  EPA will implement 5 energy saving projects at EPA owned facilities.
In 2001  In FY 2001 the Agency completed projects which will significantly reduce energy consumption at five EPA-owned laboratories.
Performance Measures:                             FY2001        FY2002        FY2003
                                             Actual         Enacted         Request
Number of energy saving projects at EPA owned facilities.               5             5                   Projects
Cumulative percentage reduction in energy consumption        .                                    15     Percent
(from 1990).

Baseline: In FY 2000, energy consumption of British Thermal Units (BTUs) per square foot is 320,000 BTUs per square foot.

Verification and Validation of Performance Measures

None.
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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
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
Comprehensive Environmental Response, Compensation and Liability Act
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                          Environmental Protection Agency

           FY 2003 Annual Performance Plan and Congressional Justification

                               Effective Management

Objective: Provide Audit, Evaluation, 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)

Provide Audit, Evaluation, and
Investigative Products and Services
Environmental Program & Management
Hazardous Substance Superfund
Inspector General
Total Workyears
FY 2001
Actuals
. 548,022.9
$7,039.8
$197.3
$40.785.8
336.1
FY 2002
Enacted
$51,961.4
$5.989.8
SI 1,952.6
S34.019.0
374.1
FY2003
Request
$53,592.7
$4,290.0
$13.977.7
$35,325.0.
372.3
FY 2003 Req.
v. FY2002Ena.
$1,631.3
($1,699.8)
$2,025.1
$1.306.0
-1.8
                                   Key Program
                                (Dollars in Thousands)

Administrative Services •
Assistance Agreement Audits
Assistance Agreement Investigations
Contract Audits
Contract and Procurement Investigations
Employee Integrity Investigations
Facilities Infrastructure and Operations
"Financial Statement Audits
Investigations
Management Services and Stewardship
Planning. Analysis, and Results - IG
Program Audits
Program Evaluation - IG
Program Evaluations/ Audit
Program Integrity Investigations
FY 2001
Enacted
$76.0
$3.487.6
$793.6
$5.025.4
$510.1
- $325.8
$7.033.4
$4.000.0
$0.0
$418.4
$9,463.3
$6.179.0
$15,308.9
$0.0
$400.0
FY 2002
Enacted
$0.0
$2,000.0
$2.900.0
$5.200.0
$3.100.0
$1,000.0_
$5,673.2
$4.000.0
$0.0
$402.2
$6,286.0
$4,900.0
$15,000.0
$0.0
$1.500.0
FY 2003
Request
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$5,243.6
$0.0
$9,469.6
$282.1
$0.0
$0.0
$0.0
$38.597.4
$0.0
FY 2003 Req.
v. FY 2002 Ena.
$0.0
($2,000.0)
($2,900.0)
($5.200.0)
($3.100.0)
(Sl.OOO.OJ
($429.6)
($4.000.0)
$9.469.6
($120.1)
($6,286.0)
($4.900.0)
($15.000.0)
$38.597.4
($1,500.0)
FY 2003 Request
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       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 2003, the OIG will continue its new directions of:

•      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 Government Performance and Results Act
       (GPRA) goals;

•      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

•      implementing human resource and knowledge management strategies that will ensure that
       the OIG has a diverse, highly motivated and accountable staff with the skill sets and tools
       needed to perform increasingly  complex work.

More specifically, the OIG will concentrate during FY 2003 on the following areas:

       Air - The OIG's approach to assessing EPA's achievement of its clean air goal will center on
       evaluating major opportunities for cost-effective pollution reduction. The OIG will focus on
       the quality  of emission data, the  effectiveness of emission allowance trading, and the
       adequacy of air  monitoring networks.

       Water -The OIG's work will center on the Agency's watershed approach with emphasis on
       national effluent guideline limitations and standards, water quality monitoring information,
       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 concentrate on determining the extent of contaminated
       waste sites remaining to be cleaned up, the environmental risks these sites pose, and whether
       cleanup  decisions are  scientifically sound and cost-effective. 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.
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       Scientific Research - The OIG will analyze EPA's scientific and peer review programs to
       evaluate their integrity, determine the effectiveness of scientific data in influencing program
       management decisions, and evaluate Agency efforts to pursue environmental protection
       innovations. The OIG will also continue to investigate criminal activity in laboratory work.

       Computer Security - In accordance with the Government Information Security Reform Act,
       the OIG will continue to evaluate major aspects of EPA's computer security program and
       practices. The OIG plans to: (1) monitor computer security weaknesses previously identified
       by our office  and the  GAO; (2) identify new  and emerging vulnerabilities to network
       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
       results-based management.  Specifically,  the  OIG  will evaluate the Agency's efforts to
       implement a systematic, customer-oriented, automated managerial cost accounting system
       that will provide program managers with relevant and reliable information relating costs to
       activities, outputs, and outcomes, and also assess the ability of Regions, States, and Tribes to
       effectively access the system.

       The OIG will continue to build capacity for performing program evaluations. The primary
emphasis of those evaluations will be to determine whether EPA has designed the programs,
projects, and tasks within the goals, objectives, and subobjectives reported to Congress under GPRA
to achieve the desired results and impacts in the most efficient and cost-effective manner. Staffed
with a mix of program analysts, scientists, auditors, economists, and others, program evaluations
will assist the Agency in identifying what works and at what cost. Evaluation efforts in FY will
concentrate on:

*      assessing the Agency's methodology for determining the relative adverse effects of
       loadings and air .deposition on surface waters, and evaluating the effectiveness of EPA's
       national effluent guideline limitations and standards to determine whether they are
       appropriate for reducing industrial discharge of pollutants;

•      evaluating the cost and effectiveness of emission allowance trading in terms of
       environmental justice;  examining the relationship of pollutants to environmental
       measures; assessing the adequacy of air monitoring networks, the validity and
       reliability of emission data, and the adequacy of EPA's human health and ecological
       impact measures;

•      assessing the use of sound science and innovative technologies in Superfund cleanups,
       and determining the appropriateness of Superfund remedy selections;
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•      evaluating the impact of EPA activities on community relations. Planned program audits
       will focus increased attention on contract administration, including the effective use of
       contracting vehicles introduced in recent years.

       The OIG Computer Crimes Unit (CCU) will conduct investigations of computer intrusions,
support the OIG and Agency personnel as a Penetration Testing Laboratory, and provide a Forensics
Laboratory to assist with OIG investigations. The CCU will continue to be an active participant in
the law enforcement computer crimes community, working collaboratively on joint projects. The
Intrusion Unit of the CCU will develop guidelines for computer incident response and serve as a
clearinghouse for all computer incident reports. The Intrusion Unit will also work collaboratively
with the Agency to develop an Agency-wide training program for information security professionals
regarding response to computer intrusion incidents. The Forensics Unit of the CCU will conduct
forensic examinations in support of OIG investigations. As the Agency continues to move toward a
paperless environment, the need for these examinations is expected to grow significantly.

       The Ombudsman conducts the OIG Hotline function and is responsible for the review of
public complaints about Agency programs and activities. The Ombudsman receives complaints
about  fraud,  waste,  and mismanagement in Agency  programs and  activities; screens  and
recommends priority complaints  for  further review  by  OIG or Agency offices; oversees case
reviews, findings, and recommendations, and reports on the results of these cases.

The OIG product line includes:

Audits

•      Contract Audits - determine the allowability, allocability, and reasonableness of costs
       claimed by contractors.

*      Assistance Agreement Audits - financial audits of EPA's State Revolving  Fund programs,
       Performance Partnership Grants, interagency agreements, and cooperative agreements.

•     " Financial Statement Audits - 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.

•      Systems Audits - review the economy, efficiency and effectiveness of operations by
       examining the Agency's support systems for achieving environmental goals, including its
       information systems and systems for setting priorities, developing plans to accomplish
       them, and measuring performance.

Program Evaluations/Audits

       Program Evaluations/Audits  use   sophisticated  analytical  tools, methodologies  and
specialized skills to determine the extent to which the desired results and benefits envisioned by the
Administration and Congress are being achieved:
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•      Process evaluations assess the extent to which a program is operating as it was intended;

•      Outcome evaluations assess the extent to which a program achieves its outcome-oriented
       objectives;

•      Impact evaluations assess net effect of a program by comparing outcomes with the
       absence of the program; and

•      Cost Benefit evaluations compare the program's outputs or outcomes with the costs to
       produce them.

OUT 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.

Investigations

*      Program Integrity Investigations focus on activities that could undermine the integrity of
       Agency programs, and erode public confidence in the Agency,

•      Assistance Agreement Investigations focus on criminal activities related to Agency
       grants, State Revolving Funds, Interagency Agreements, and Cooperative Agreements.

•      Contract and Procurement Investigations focus  on acquisition management, contracts,
       and procurement practices.

•      Employee Integrity Investigations involve allegations against EPA employees that could
       threaten the credibility of the  Agency.

       Investigations of computer crime 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. These investigations may be part of any of the above
investigative categories.

       The OIG's  initiative to uncover criminal activity in laboratories involves investigating
indicators of laboratory fraud within the environmental community to include commercial and EPA
laboratories. The Agency relies upon laboratory test results to assess environmental threats and
determine what actions are necessary to control hazardous wastes, toxins, and other contaminated
substances that pollute our air, water, and land. These investigations generally are part of contract
and procurement investigations or program integrity investigations.

Advisory and Assistance^Services

       Advisory and Assistance Services include a wide  range of products and services designed to
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give managers information they need more expediently than audits or evaluations, and to assist EPA
management in assessing and/or implementing control systems and processes.

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 and
program operations, and saving taxpayer dollars while leading
to the attainment of EPA's Strategic Goals. Our strategic plan
aligns OIG products and services with current Agency goals and
priorities based upon emerging issues, legislative initiatives,
needs  of  various  customers, clients and stakeholders  and.
multiple dynamic external factors.
                                                            Cresting a Nexus or Link Between OIG Products.'
                                                            Services; and Rnvironmcnlal Lrpacts/'Goals
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 Audit, Evaluation, Advisory,
 Investigative Products and Services
Agency Intermediate Outcomes
      (Catalysts)
     Agency Goals/Outcomes
         and Impacts
 Questioned Costs/Savings
 Recommendations/Opinions
 Advice/Analysis/Projects
 Indictment/Convictions
 Civil/Administrative Actions
 Fines/Restitutions
 Reports/Briefings
 Evaluation Conclusions
    Legislative Change
    Regulatory Change
    Policy Change
    Practice Change
    Enforcement Actions
    Industry, Grantee or
     State Monitoring
    Costs Recovered, Offset,
      Saved or Avoided
      Improved Efficiencies
      Improved Effectiveness
      Improved Controls
      Increased Compliance
      Improved Reporting
      Risk Reduction
      Improved Environmental
        and Human Health
        Results/Indicators
 Examples below are prospective EPA outputs and outcomes potentially resulting from Agency acceptance of our
 products and services. Environmental impacts and management improvements are logical extensions of actions
 taken on audit, evaluation, investigation,, advisory products and services.
 Water and Air Quality
  Safe Food and Waste
  Management
Assistant Agreements and
Financial Management;
Enforcement & Compliance;
Sound Science and Data Quality
 Increased number of watersheds restored
 Percentage of population with clean water
 Number of states with approved standards
  consistent with the Clean Water Act
 Quality of stewardship strategies
 Percentage of people with healthy indoor
   air
 Number of states with good air quality
  Quality of enforcement actions for
     timely site resolution
  Number of construction remedies to
    control risks to human health
  Number of sites cleaned up
  Number and quality of pesticides
    tolerance assessments and
   reregistrations
  Percentage of people with safe food
Percentage of people with better
  treatment of and access to clean
  water
Financial information, reliable
  and useful for decision making
Better enforcement actions for   .
compliance and reduction of actual risk
Integrity of data used for
management, policy  and
enforcement actions
FY 2003 Change from FY 2002

EPM

•   (+$98,000) This increase reflects the transfer of the Ombudsman function non-payroll
    resources.

•   (-$1,590,400) Resources, dollars and FTE, associated with rent are allocated in proportion to
    Agency-wide FTE located in each goal, objective.   Resources, dollars and FTE, associated
    with utilities, security and human resource operations are allocated in proportion to
    Headquarters FTE located in each goal, objective. Changes reflect shifts in FTE between
    goals and objectives.  Resources, dollars and FTE, associated with contracts and grants are
    allocated in proportion to Headquarters' contracts and grants resources located in each goal,
    objective. Changes in these  activities reflect shifts in resources between goals and
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     objectives.  (Total changes - rent:  -$3,569,400, utilities: +$3,468,000, Security:  -
     $9,103,900.  Nominal increases/decreases occurred in human resource operations, grants
     and contracts related activities.)


Superfund


•    (+$294,000) This increase reflects the transfer of the Ombudsman function non-payroll
     resources.


Annual Performance Goals and Measures

Fraud Detection and Deterrence

In 2003   Improve Agency management and program operations by identifying savings, recoveries, and fines equaling 150 percent of the
              investment in the O1G, and by preventing fraud and reducing the risk of loss through 50 criminal, civil, or administrative actions.

In 2002   Improve Agency management and program operations by identifying savings, recoveries, and lines equaling the annual investment in
              the OIG, and by preventing fraud and reducing the risk of loss through SO criminal, civil, or administrative actons.

In 2001"   We met our goal to increase our effectiveness in detecting & deterring fraud & other improprieties that undermine the integrity of
              Agency programs/resources. Investigations resulted in 120 judicial, administrative & other actions taken to enforce laws &
              reduce/avoid risk & $5.3 millions in savings,

Performance Measures:    .                                  FY2001            FY 2002            FY 2003
                                                          Actual            Enacted            Request
Number of judicial, administrative, or other actions taken.                                     50                50      Actions
Return on the annual dollar investment in the OIG           .                               100               150      Percent
Baseline:  In FY 2001, 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.
Audit and Advisory Services

In 2003   Improve environmental quality and human health by recommending 75 improvements across Agency environmental goals, identifying
              and recommending solutions to reduce 20 of the highest environmental risks, and identifying 20 best environmental practices.

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   The OIG exceeded its annual performance goals of providing timely, independent auditing and consulting services responsive to the.
              needs of our customers that provide value to the agency and recommendations to improve program and operational performance
              and integrity.

Performance Measures:                                      FY200I           FY2002           FY2003
                                                          Actual             Enacted           Request
Number of environmental improvements made, reductions in                                   65                95      Improvements
environmental risks.

Number of best environmental practices identified                  .                          15                20      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.
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Verification and Validation of Performance Measures

Performance Measure: Number of recommendations for environmental improvements made,
reductions in environmental risks and best environmental practices.

Performance Database: The OIG Performance Results and Measurement System is used to capture
and aggregate information on the actual and prospective results of OIG products and services. The
database identifies an array of measures in logic model format linking immediate outputs with longer
term intermediate outcomes and results supporting the Office of Inspector General's (OIG) strategic
goals. Because intermediate and long-term results do not come to fruition for several years, only
verifiable results are reported in the year completed, while others remain prospective until completed
and verified. Database measures  include numbers ofl)  recommendations  for environmental
improvement; 2) legislative and regulatory changes;
 3) policy, directive, or process changes; 4) environmental risks identified, reduced or eliminated; 5)
best practices identified and transferred; and 6) examples of environmental improvement.

Data Source: Designated OIG staff are responsible for entering data into the system. Data are from
OIG independent follow-up, research, and certifications of actions taken by EPA officials. OIG also
collects independent data from EPA's partners and through its own performance evaluations, audits,
and research to determine the extent of environmental improvements, risks reduced or avoided, and
best practices transferred.

QA/QC Procedures: All performance data submitted to the database require at least one verifiable
source ensuring data accuracy and reliability. Data quality assurance and control are automatically
performed as an extension of OIG products and services, subject to rigorous compliance with the
Government Auditing Standards of the Comptroller General, and regularly reviewed by OIG
management, an  independent OIG  Management Assessment Review  Team,  and external
independent peer reviewers. The statutory mission of the OIG, is to conduct independent audits,
evaluations, and investigations to promote, among other things, integrity in Agency operations and
reporting systems.

Data Quality Reviews: There have not been any previous audit findings or reports by external
groups on data or database weaknesses in the OIG Performance Results and Accountability System.

Data Limitations: All OIG staff are responsible for data accuracy in their products and services.
However, there is the possibility of incomplete, miscoded, or missing data in the system due to
human error. Data supporting achievement of results are often from indirect or external sources, with
their own methods or standards for data verification/validation.

New/Improved Data or Systems: The OIG developed the Performance Results and Accountability
System as a prototype in FY 2001 and anticipates enhancing it in FY 2003 with more sophisticated
software designed to improve data collection, retention, and analysis. This system  is a best practice
in government for linking an array of measures from outputs to eventual results and impacts. With
enhanced linkages to customer satisfaction results and resource investments, it will provide a full,

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balanced scorecard with return on investment information for accountability and decision-making.

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 is also a member of the Environmental Consortium. The
Consortium, which seeks effective solutions to cross-cutting environmental issues, currently
includes representatives from 19 executive agencies and GAO. The OIG Computer Crimes Unit
coordinates activities with other law enforcement organizations with computer crimes units such as
the Federal Bureau of Investigation, the Secret Service, and the Department of Justice. In addition,
the OIG 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
Comprehensive Environmental Response, Compensation and Liability Act
Food Quality Protection Act
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Annual Performance Goals

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                                 5-YEAR PERFORMANCE DATA
                          Annual Performance Goals and Measures
GOAL 01: 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.

     • OBJECTIVE 01: 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 2005 for carbon monoxide, sulfur dioxide, nitrogen dioxide, and lead; by 2012 for ozone; and by 2018 for
      particulate matter (PM).  To accomplish this in Indian country, the tribes and EPA will, by 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.

      Reduce Ozone and Ozone Precursors

      In 2003        Maintain healthy air quality for 44.1 million people living in monitored areas attaining the ozone standard; certify that 2 areas of the remaining 45
                    nonattainment areas have attained the 1 -hour NAAQS for ozone thus increasing the number of people living in areas with healthy air by 1.0 million.

      In 2001        EPA maintained healthy air quality for 38.2 million people living in 43 areas attaining the ozone standard, increased by 3.5 million the number of people
                    living in areas with healthy air quality that have newly attained the standard by certifying that 3 new areas have attained the 1 -hour standard.

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

      In 1999        Healthy air quality maintained 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.

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Performance Measures
Publish Notice Revoking 1-Hour Standard
Consumer Product Rules
National Guidance on Ozone SIP
States submit designations of areas for attainment of the
ozone standard
Total Number of People who Live in Areas Designated to
Attainment of the Clean Air Standards for Ozone
Areas Designated to Attainment for the Ozone Standard
Additional People Living in Newly Designated Areas with
Demonstrated Attainment of the Ozone Standard
VOCs Reduced from Mobile Sources
NOx Reduced from Mobile Sources
FY1999       FY2000       FY2001
10
0
1 Draft
50

33,363,000     35,063,000     41,679,000
0
0

1,409,000
898,000
                            FY2002       FY2003
                                                         Areas
                                                         Rules
                                                         Issued
                                                         States

                                           45,167,000    People
1,700,000      3,475,000

1,562,000      1,659,000
1,059,000      1,189,000
2
1,021,000

1,852,000
1,449,000
Areas
People

Tons
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 2001,46 areas with a population of 41.7 million have been redesignated to attainment and 55 areas remain in nonattainment.
                (Population estimates based on 2000 census.) 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 Particulate Matter
In 2003         Maintain healthy air quality for 7.2 million people living in monitored areas attaining the PM standards; increase by 81 thousand the number of people
                living in areas with healthy air quality that have newly attained the standard.
In 2001  ,       EPA maintained healthy air quality for 1.189 million people living in 9 areas attaining the PM standards and increased by 2.249 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 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         EPA deployed  PM-2.5 ambient monitors including: mass, continuous, speciation, and visibility sites resulting in a total of 1110 monitoring sites.
In 1999         Healthy air quality maintained for 1.2 million people living in 7 areas attaining the PM standards.

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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

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

PM-10 Reduced from Mobile Sources

PM-2.5 Reduced from Mobile Sources
FY 1999 .
1 Draft


30-Sep-2000


1110

1,200,000
FY 2000
FY2001
FY 2002
FY 2003
1,275,800      3,438,000
0
0
18,000
13,500
2
75,800
20,000
15,000
8
2,249,000
22,000
16,500
                                                        Issued
                                          Sites
                            7,262,000     People
8
81,000
25,000
18,000
Areas
People
Tons
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.  Since that time, EPA has split Poeatella into 2 areas thereby revising the baseline to 85 with a population of 31,114,000. Through 2001,17
                areas with a population of 3.4 million have been redesignated to attainment. (Population estimates based on 2000 Census.) The 1995 baseline for PM-10
                reduced from mobile sources is 880,000 tons and 659,000 for PM-2.5.

Reduce CO, SO2, NO2, Lead

In 2003         Maintain healthy air quality for 52.7 million people living in monitored areas attaining the CO, SO2, NO2, and Lead standards; increase by 4.1 million
                the number of people living in areas with healthy air quality that have newly attained the standard.

In 2001   ,      EPA maintained healthy air quality for 36.3 million people living in 56 areas attaining the CO, SO2, NO2, and Lead standards and increased by
                418,000 the number of people living in areas with healthy air quality that have newly attained the standard.

In 2000         Maintained healthy air quality for 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         13 of the 58 estimated remaining nonattainment areas have achieved the NAAQS for carbon monoxide, sulfur dioxide, or lead. .

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.

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Performance Measures                                   FY 1999       FY2QOO       FY2001       FY2002      FY2003
Total Number of People Living in Areas Designated in       27,718,000    31,100,000    36,721,000      '            56,732,000    People
Attainment with Clean Air Standards for CO, SO2, N02,
and Pb

Areas Designated to Attainment For the CO, SO2, NO2, and   13            10            9                           15            Areas
Pb Standards

Additional People Living in Newly  Designated Areas with    4,918,531      3,410,000      418,000                     4,007,300     People
Demonstrated Attainment of the CO, SO2, NO2, and Pb
Standards                                     ,

CO Reduced from Mobile Sources                         9,841,000      10,341,000    10,672,000                  11,333,000    Tons

Total Number of People Living in Areas with Demonstrated   13,000,000    13,000,000    14,944,000                  14,944,000    People
Attainment of the NO2 Standard



Baseline;        For SO2, NO2, Lead, and CO, 107 areas with a population of 67,573,000 were classified as non-attainment or were unclassified in 1990,  Through
                2001, 65 of those  areas with a population of 36.7 million have been redesignated to attainment. (Population estimates based on 2000 census.) The 1995
                baseline for mobile source emissions for CO was 70,947,000 tons.

Air Quality Index

In 2003         The three year average of the total number of days nationwide that any city reports air quality index (AQI) values greater than 100 in the nation's 94
                largest metropolitan areas will drop from 1,548 in 1997-1999 to 1,290 in 2001 -2003, which is 3.7% of total days.

In 2001         Three year trend data not available until late 2002.

Performance Measures                                   FY 1999       FY2000       FY2001       FY 2002      FY2003
Number of Area Days Greater than  100                                                 Data Lag                    1,290         Area Days



Baseline;        The AQF provides information on pollutant concentrations for ground level ozone (O3), particulate matter (PM-10), carbon monoxide (CO), sulfur
                dioxide (SO2), and nitrogen dioxide (NO2). Of these 5  pollutants, only 4 (CO, O3, PM-10, and SO2) generally contribute to the AQI value.  Ozone
                contributes 98% of the AQI days over 100 due to ozone in 1999. The proposed measure is a three year running average of the total metropolitan  •
                statistical area days (msa-days) above an AQI value of 100.  This averaging helps to account for the variability (upward and downward swings)
                associated with the significant effect of meteorology on this metric. Since 1993, the running 3 year average of AQI msa-days > 100 has fluctuated with
                a high of 1,586 for 1993-1995, a low of 1,414 for 1997-1999 and the mean of the average number of msa-days from the three year periods 1991-1993
                through 1998-2000 at 1,490.  This is a new measure for  2003, EPA will use the mean for the previous 7 three year periods (1,490) as its estimate for
                2001  and targeted a reduction of 100 total msa-days each year through 2003.

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Research
PM Effects Research

In 2003         Describe health effects of PM and its components in normal and susceptible populations, mechanisms by which PM exerts adverse health effects, and
                analyze ambient and personal exposure to PM so that EPA has the necessary information to develop NAAQS that protect human health.

In 2001         EPA provided new information on the atmospheric concentrations, human exposure, health effects and mechanisms of toxicity of particulate matter.

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         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.

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 MAID to support EPAs part of Inner City Asthma
                study.
Performance Measures
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 characteristcs (composition)

Hold CAS AC review of draft PM Air Quality Criteria
Document.

Complete longitudinal panel study data collection &
preliminary report on exposure of susceptible
subpopulations to total PM & 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 eardiopulmonary systems, on responses to
PM exposures and (2) data on regional deposited dose of
inhaled ultrafine particles.
FY 1999
3 Reports
FY2000       FY2001
FY2002
FY 2003
              30-Sep-2000
              30-Sep-2000
                                                                       review
                                                                       report
                                                        data
                                                         reports

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Report on results from Baltimore study evaluating the
cardio- vascular and immunological 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.
Publish report on the empirical and theoretical lung
deposition dose of ultfaftne, fine, and coarse particles in
elderly and mild asthmatic subjects under various breathing
conditions.

Describe the relative importance of PM attributes (physical,
chemical, and biological) on health outcomes in laboratory
animals and humans.

Ascertain attributes of susceptibility contributing to the
responsiveness of cardiovascular- and pulmonary-
compromised humans and laboratory animals.

Describe biochemical and neurogenic mechanisms by
which PM modulates cardiovascular, hematological, and
pulmonary  functions.

Report on the acute respiratory health effects of particulate
matter and co-pollutants among asthmatic children in seven
U.S. communities.
                                                                        report
 model
1 manuscript
                                                                        study


                                                                        report
                                                                        final AQCD

                                                                        report
                                                                        evaluation
                                                                        analysis
                                                                        evaluation
                                                                        report
Baseline:        At present, there is substantial evidence from epidemiological studies that increased levels of partieuiate matter (PM) are associated with increased
                frequency of death and disease, especially in the elderly, in individuals with cardiopulmonary disease, and in children.  We still do not understand which
                PM components are responsible for increased mortality and morbidity, nor do we ftilly understand whether persona! exposure to PM is reflective of
                exposure information obtained from fixed site monitoring. Our understanding of the biological mechanisms underlying these associations, and a fuller

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                understanding of populations which may be susceptible to PM are also 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 2003 will include development and application of new methods for
                assessing human exposure, identifying susceptible populations and major PM components responsible for toxicity, and characterizing mechanisms of
                toxieity leading to PM health effects, all of which will yield an improved scientific basis for setting National Ambient Air Quality Standards (NAAQS)
                for PM.

PM Measurement Research

In 2003         Provide updated data on PM source emissions, technology costs and performance, and air quality models so that States will have improved PM
                emissions inventories and compliance strategies for attaining the PM NAAQS and safeguarding public health.

In 2001         Provided 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) development under the current PM NAAQS  by completing the products below and other research activities.

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.

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

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

Performance Measures                                   FY 1999       FY2000       FY2001       FY2002      FY 2003
Produce data on the size distribution of particles emitted      2 Reports
from residential wood combustion (fireplae
Produce improved receptor models (CMB8 and UNMIX)                   2                                                        models
for measurement of source category emissions impacts on
air quality.
Complete a preliminary evaluation of Models-                              30-Sep-2000                                             evaluation
3/Community Multi-Scale Air Quality (CMAQ) for PM,
demonstrating its potential reliability for PM NAAQS
attainment planning

In 1999 establish five airborne particulate matter (PM)       5 Grant
research centers to conduct integrated studies on  PM         Awards
exposure, dosimetry and extrapolation modeling,
toxicology and epidemiology.

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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 of Models-3/CMAQ.

Prepare a report evaluating a new PM control technology,
electrostatic fabric filtration, for use on coal-fired boilers.

To support the OAR PM regulatory program, produce a
paper on emissions of ammonia from hog waste lagoons,
both before and after application of mitigation techniques.

Complete analysis of organic compounds in PM samples
from combustion sources. Data will be used to  update an
OAR'database used by states to determine sources of
ambient PM.
report
documentation
report
paper
compendium
Baseline;        There are existing databases, measurement methods, models, and other tools used to support decisions concerning implementation of the NAAQS for
                PM.  Recent scientific advances and proposed changes to the PM standard require additional research to update and validate the existing tools and to
                develop new tools. While much is known about the emissions and concentrations of sulfur oxides and nitrogen oxides that contribute to formation of
                PM in the ambient air, less is known about other variables such as emissions of ammonia and directly emitted PM,  how to measure the organic and
                elemental fractions of PM, and the myriad atmospheric reactions that lead to PM formation. Improvements are needed to measure various PM
                components at high time resolution and better specificity and to determine the physical properties of PM including  size fractions and composition in
                ambient monitoring networks.  Improvements are also needed to better understand the effect of meteorological parameters and other factors that may
                bias the measurements.  Studies to validate and upgrade emission based and receptor models are also needed to ensure these tools produce the best
                results possible to support NAAQS compliance decisions. Key needs include studies to validate PM concentrations generated by the model against
                actual field measurements, improved data on the composition of directly emitted PM to identify unique tracers that relate emissions from a specific
                source, and improvements in our understanding of PM formation in clouds and fogs and transport processes at the surface and aloft to upgrade model
                algorithms that calculate atmospheric PM formation. Finally, as new PM and multi-pollutant control technologies are developed, technical and
                economic assessments are needed to assess their viability. Federal, state, and local air quality officials will use the  upgraded models, methods and other
                tools to design and implement existing and new PM and visibility standards.
OBJECTIVE 02; REDUCE AIR TOXICS RISK

By 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 subpopulations, and substantially reduce or eliminate adverse effects on
our natural environment.  By 2010, the tribes and EPA will have the information and tools to characterize and assess trends in air toxics in
Indian country.

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Reduce Air Toxic Emissions

in 2003        Air toxics emissions nationwide from stationary and mobile sources combined will be reduced by an additional 3% of the updated 1993 baseline of 6.1
               million tons (for a cumulative reduction of 40% from the 1993 level of 6,1 million tons per year.)

In 2001        Errd-of-year FY 2001 data will be available in late 2004 to verify that air toxics emissions nationwide from stationary and mobile sources combined will
               be reduced  by 5% from 2000 (for a cumulative reduction of 35% from the 1993 level of 4.3 million tons.)


In 2000        End-of-year FY 2000 data will be available in late 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                                   FY 1999       FY2000      FY2001      FY2002       FY 2003
Combined Stationary and Mobile Source Reductions in Air   12                         5                           3             Percent
Toxics Emissions

Federal Register Publication of Final M ACT Standards                                  4                           19            Notices
Number of proposed MACT standards.                                                13                          9             Proposed



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 are now estimated to have emitted 6.1  million tons of air toxics. (EPA's prior estimate was 4.3 million tons.) 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. Using revised inventories and improved models, the estimate has been revised up from the previous estimate of 4.3
               million tons.


OBJECTIVE 03: REDUCE ACID RAIN

By  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.

Reduce SO2 Emissions

In 2003        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.

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In 2001         End-of-year FY 2001 data will be available in late 2002 to verify that 2 million tons of NOx from coal-fired utility sources were reduced from levels
                that would have been emitted without implementation of Title IV of the Clean Air Act Amendments.

In 2000         6.3 million tons of SO2 emissions from utility sources were reduced from 1980 baseline.

In 1999         On-track to achieve APG. End-of-year FY 1999 data will not be available until late 2000.

Performance Measures                          .         FY 1999       FY2000       FY2001       FY2Q02      FY 2003
SO2 Emissions                                                        6,300,000      On track                     5,000,000     Tons Reduced

NOx Reductions                        •                30-Oct-2000                                                           Tons Reduced



Baseline:        The base of comparison for assessing progress on the annual performance goal is the 1980 emissions baseline. The 1980 SO2 emissions inventory
                totals  17.5 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 which is approximately 8.5 million tons below 1980
                emissions level. "Allowable SO2 emission level" consists of allowance allocations granted to sources each year under several provisions of the Act and
                additional allowances carried over, or banked, from previous years.

Reduce NOx Emissions

In 2003         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          End-of-year FY 2001 data will  be available in late 2002 to verify that NOx emissions during ozone season from participating utility and industrial
                sources were below allowable level authorized by allowance (approximately 50% reduction from 1990 baseline).

In 2000         2 million tons of NOx from coal-fired  utility sources were reduced from levels before implementation of Title IV of the Clean Air Act Amendments.

Performance Measures                                   FY 1999       FY2000       FY2001       FY2002      FY 2003
NOx Reductions                                                       2,000,000      On track                     2,000,000     Tons Reduced



Baseline;        Performance Baseline:  The base of comparison  for assessing progress on this annual performance goal is emissions that would have occurred in the
                absence of Title IV of the Clean Air Act Amendments. 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 6711.2, December 19, 1996).
                                                                  1C

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Reduce Ozone Season NOx Emissions

In 2003         Control NOx emissions during ozone season from participating utility and industrial sources to below allowable level authorized by allowances.

In 2001         End-of-year FY 2001 data will be available in late 2002 to verify that NOx emissions during ozone season from participating utility and industrial
                sources were below allowable level authorized by allowance (approximately 50% reduction from 1990 baseline).

Performance Measures                                   FY 1999       FY 2000       FY2001       FY2002      FY 2003
Ozone Season NOx Reductions                                                       Data Lag                    220,000       Tons Reduced



Baseline:        Performance Baseline:  The 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 enabling state 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.

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GOAL 02: 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 human health, enhance water quality, reduce flooding, and provide habitat for wildlife.

       OBJECTIVE 01: ENSURE SAFE DRINKING WATER, FISH AND RECREATIONAL WATERS

       By 2005, protect public health so that 95% of the population served by community water systems will receive water that meets 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.

       Safe Drinking Water

       In 2003        85 percent of the population served by community water systems will receive drinking water meeting health-based standards promulgated in or after
                      1998.

       In 2003        92% ofthe population served by community water systems will receive drinking water meeting all health-based standards in effect as of 1994, up from
                      83% in 1994.

       In 2003        93 percent ofthe 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 2001        91 percent of the population served by water systems received drinking water meeting all health-based standards that were in effect as of 1994.

       In 2000        91% ofthe 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 2000 '       93% percent ofthe 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 1999        91 % ofthe population served by community water systems received drinking water meeting all health-based standards in effect as of 1994, up from
                      83% in 1994.

       Performance Measures                                 FY 1999     FY2000      FY2001       FY2002      FY2003
       Population served by non-community, non-transient                     93            92                         93            % population
       drinking water systems with no violations during the year
       of any Federally enforceable health-based standards that
       were in place by 1994.



                                                                    12

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Percent of population served by community drinking water                  91            91                          92            % Population
systems with no violations during the year of any Federally
enforceable health-based standards that were in place by
1994.

Population served by community water systems providing                                                             85            % Population
drinking water meeting health-based standards promulgated '
in or after 1998.



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 2003         Enhance homeland security by securing the nation's critical drinking water infrastructure.

In 2003         Enhance protection of tribal health by increasing the percentage of tribal community and non-community water systems that are run by certified
                operators.

In 2003         Protect human health and ensure compliance with health-based drinking water standards through use of the Drinking Water State Revolving Fund
                (DWSRF).

In 2001         69% of tribal community and non-transient non-community water systems have a certified operator.

In 2001         Protected human health and ensured compliance with health-based drinking water standards by initiating 822 DWSRF operations and having 1,876
                assistance agreements to community and non-community drinking water systems.

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                                   FY 1999       FY2000       FY2001       FY2002      FY2003
DWSRF assistance agreements to community and non-                      1411          1876                        3,000          Agreements
community drinking water systems, (cumulative)

Tribal community and non-transient non-community water                                69%                        73%           Water systems
systems with a certified operator.


                                                                  13

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Percent of the population served by, and the number of                                                                100%/3,416    % pop/systems
medium-sized (10,001 - 100,000 served) community water
systems that have completed or are conducting vulnerability
assessments.

Percent of the population served by, and the number of,                                                                50%/25,100    % pop/systems
small (fewer than 10,000 served) community water systems
that have completed or are conducting vulnerability
assessments.

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

DWSRF projects that have initiated operations.                             528           822                          1,600         Projects
(cumulative)



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


Rules for High-Risk Contaminants

In 2003         Ensure public health protection by identifying and studying potentially harmful contaminants in drinking water and developing, issuing, and revising
                regulations and/or guidance to limit exposure to contaminants found to be harmful to people.

In 2001         Expanded public health  protection through the promulgation of arsenic, radionuclides, filter backwash, and made 9 determinations whether or not to
                regulate potentially harmfiil 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 developed major risk analyses formierobial and chemical contaminants to support selection of contaminants to be regulated.

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 promulgated the monitoring of unregulated contaminants rule ensuring that the highest risk contaminants are identified and managed.

Performance Measures                                    FY 1999       FY2000       FY2001       FY 2002       FY 2003
Number of health risk assessments started/completed for                                , 9                                          Assessments
contaminants that are potentially harmful to people.

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Regulatory determinations for potentially harmful
contaminants.
Number of regulations and associated technical guidance
documents proposed/promulgated.
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.
Regulations promulgated/proposed.
                                        1

                                        2
                                                      52
                                                      33/30
                                                                                                  21}
                                                          Determination
                                                          s
                                                          Regs/guidance
                                                          States, DC, PR


                                                          States

                                                          List

                                                          Rules

                                                          Regulation


                                                          Regulations
Baseline:
By the end of 2000 an estimated 5 rules will have been promulgated.
Underground Injection Well Management

In 2003         Target implementation of UIC regulations to ensure low risk of contamination to source water resources.

In 2001         Through the UIC program, EPA contributed to the protection of ground water sources of drinking water from potential endangerment by bringing
                11,266 Class IV/V wells under specific controls through permits or closure.

In 2000         Increased protection of ground water resources by bringing 500 Class I V/V wells under specific controls through permits or closures and by plugging
                3,852 underground injection wells,

In 1999         Data for underground injection wells tested and passed for mechanical integrity  is expected to be available in March 2000.

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 ?, 1999.
Performance Measures
States that have formally adopted the Class V rule.
                                        FY 1999
FY 2000
FY2001
8
FY 2002
FY 2003
                                                                                                                States
                                                                   15

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Class 1V/V wells (by well type) brought under specific
controls through permits or closures.
Issue proposed Phase 2 UIC Class V regulatory action.

Number of motor vehicle disposal wells closed and/or
permitted. (Class V)
Percentage of underground injection wells out of
compliance with a permit and/or rule authorized that are
returned to compliance in an appropriate and timely
manner. (Classes 1, II, and 111 only)
Availability of UIC Class V Regulation

Underground Injection wells tested and passed for
mechanical integrity
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
11,266
                                        0

                                        TBD
                                                       50
                                                       3,852
                                                                                                  400

                                                                                                  90
2,766
Wells

Action

Wells

% 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.
River/Lake Assessments for Fish Consumption

In 2003         Reduce consumption of contaminated fish by increasing the information available to States, Tribes, local governments, citizens, and decision-makers.

In 2001         9% of the nation's river miles and 23% of nation's lake acres have been assessed to determine if they contain fish and shellfish that should not be eaten
                or should be eaten in only limited quantities.

In 2000         7% of the nation's river miles and 16% of the nation's lake acres have been assessed to determine if they contain fish and shellfish that should not be
                eaten or should be eaten in only limited quantities.

In 1999         7% of river miles and 15% of lake acres were assessed for the need for fish advisories.
                                                                    l(

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Performance Measures                                   FY 1999       FY2000      FY2001       FY2002       FY 2003
Lake acres assessed for the need for fish advisories and                     16            23                           29             %  lake acres
compilation  of state-issued fish consumption advisory
methodologies, (cumulative)

States/Tribes monitoring and conducting assessments based   25             40            40/41                        45             States/Tribes
on the national guidance to establish nationally consistent
fish advisories.
River miles assessed for the need for fish consumption       7              7             9                            11%           River miles
advisories & compilation of state-issued fish consumption
advisory methodologies, (cumulative)



Baseline:        In 1999,7% of the Nation's rivers and 15% of the Nation's lakes were assessed to determine if they contained fish that should not be eaten or should be
                eaten in only limited quantities.  In September 1999,25 states/tribes are monitoring and conducting assessments based on the national guidance to
                establish nationally consistent fish advisories. In the upcoming 2000 Report to Congress on the National Water Quality Inventory, 69% of assessed river
                and stream miles; 63% of assessed lake, reservoir, and pond acres; and 53% of assessed estuarie square miles supported their designated use for fish
                consumption.  For shell fish consumption, 77% of assessed estuary square miles met this designated use.


Increase Information on Beaches

In 2003         Reduce human 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 providing information on 2,354 beaches for which monitoring and closure data is available to the
                public and decision-makers.

In 2000         1,981 beaches had monitoring and closure data including 150 digitized maps, available to the public through EPA's website.

In 1999  .       Data entered for 26 states into the public right-to- know database on beach monitoring and  closure.

Performance Measures                                    FY 1999       FY2000      FY2001       FY2002       FY2003
Beaches for which monitoring and  closure data is available                  1,981          2,354                        2,450          Beaches
to the public at http://www.epa.gov/OST/beaches/.
(cumulative)

Number of eligible States that have started/completed                                                                  15/5           States
development of monitoring and notification programs
consistent with the BEACHES legislation.

Fish tissue samples collected (cumulative).                                 128                                                       Samples


                                                                    17

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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. In the upcoming 2000 Report to Congress on the National
                Water Quality Inventory, 72% of assessed river and stream miles; 77% of assessed lake, reservoir, and pond acres; and 85% of assessed estuarie square
                miles met their designated uses for recreation (primary contact).

Source Water Protection

In 2003         39,000 community water systems (representing 75% of the nation's service population) will have completed source water assessments and 2,600 of
                these (representing 10% of the nation's service population) will be implementing source water protection programs.

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.

In 1999         11,011 community water systems are implementing programs to protect their source water.
Performance Measures                                    FY 1999       FY2000
Population served by community water systems that are                     30.5
implementing efforts to protect their source water
resources.

CWSs implementing efforts to protect their source water                    5,000
resources.

Number of community water systems and percent of
population served by those CWSs that have completed their
source water assessments.

Number of community water systems and percent of
population served by those CWSs that are implementing
source water protection programs.

CWSs with ground or surface water protection programs in    11,011
place

States that are implementing their EPA-approved source                    49
water protection assessment programs.
                            FY2001       FY2002       FY 2003
                                                                       People



                            2,026                                      CWSs


                                                         75%/39,000    Percent/system
                                                                       s


                                                         10%/2,600     % pop/systems



                                                                       CWSs


                                                                       States
                                                                   18

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Baseline;        EPA has defined implementation as undertaking 4 or more of 5 stages of source water protection. Nearly 264 million people are estimated to be served
                byCWSsin2001.


Research

Drinking Water Research

In 2003         The Office of Water will have data, methods, assessments, and technology evaluations necessary to make scientifically sound risk assessment and risk
                management decisions on unregulated drinking water contaminants of potential public health concern.

In 2001         EPA reduced uncertainties and improved 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 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 2000         EPA reduced uncertainties and improved methods associated with the evaluation and control of risks posed by exposure to arsenic in drinking water by
                completing the products below and other research activities.

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.

In 1999         Produced data on the role of micronutrient 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.

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.

Performance Measures                                  .  FY 1999      FY2000       FY2001       FY 2002       FY 2003
Data on first city study on microbial enteric disease.        .  30-Sep-1999

Complete hazard i.dJscreening studies on                   30-Sep-1999
reproductive/developmental effects of selected DBPs.

Interim report on modeling methods for estimating the       30-Sep-2001
vulnerability of ground water to viral contamination.

Report assessing the feasibility of attaining/constructing                     1                                                         report
refined DBF exposure information for extant epidemiologic
drinking water studies.
                                                                   19

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Report on the identification of new DBFs in drinking water
formed by alternative disinfectants.

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.

Report on waterborne disease outbreaks in the U.S.
Evaluation of Method  1622 for Cryptosporidium for use in
the  Information Collection Rule.

Describe different technologies for cost/effective control of
Cryptosporidium oocysts and DBFs.

Report summarizing the results of two additional treatment
evaluations for arsenic control.

Add comparative Risk Framework Report

Report on occurrence of CCL-related pathogens in source
and drinking water, such as mycobacterium and Aeromonas

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.

Develop methodology to identify and characterize H.
pylori, Cyclospora, caliciviruses and sources of human
pathogens in water.
Publish a technical report on treatability of three chemicals
in the 1998 Contaminant Candidate List to provide
information to the program office for use in the regulatory
determination.

Report on waterborne disease in the young and elderly in
Washington State community intervention study.

Provide report on hazard and risk characterization issues for
potentially susceptible subpopulations for chemicals on the
Contaminant Candidate List
              30-Sep-2002
1  Report
                             1


                             2
report


report




report

evaluation


description


report



report


studies




report


method



report




report

report
                                                                    20

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Baseline:        The Safe Drinking Water Act Amendments of 1996 establish a process and timeline for EPA to make decisions about the regulation of waterborne
                pathogens and chemicals for which standards have not been previously established. The ability of EPA to identify potential candidates for regulation
                and to make scientifically sound regulatory decisions is dependent upon the availability of adequate information concerning the assessment and control
                of these contaminants. The current list of unregulated microbes and chemicals, called the Contaminant Candidate List (CCL), includes over 60
                contaminants. The quality  and robustness of the data base on health effects, exposure and treatability of these contaminants is highly variable. Some
                microorganisms on the CCL, for example, lack suitable analytical methods that are necessary for determining their viability and occurrence in drinking
                water samples. Basic information on the health effects of selected CCL chemicals are lacking, and the ability of conventional treatment technologies to
                remove or inactivate some of the contaminants has not been clearly established.  Research conducted in support of this APG will provide new health
                effects and exposure data, analytical methods, risk assessments and technological evaluations on several high priority pathogens and chemicals. This
                will strengthen the scientific foundation for the next CCL and for future regulatory determinations on these contaminants.



OBJECTIVE 02: 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.)

Assessments of Designated Uses

In 2003          Assess, restore and protect  watersheds.

In 2001          Assessed 132.1 river miles/lake acres, and 6,057 square estuary square miles that have water quality supporting designated uses, where applicable, for
                drinking water supply.

In 2001          Continued to restore and protect watersheds through  implementation of over 2,300 TMDLs.

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 2000          Of the 2,674 water segments previously identified and analyzed by states as being polluted, states submitted TMDLs for 2,167 water segments. EPA
                approved 1,276 TMDLs submitted by states, and EPA established 166 TMDLs. Due to the large number of TMDLssubmitted, not allTMDLs were
                addressed.

In 1999          29 States have electronically updated their 1998 305(b) information which reflected adequate monitoring and assessment programs (Base of 0).
                                                                 21

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Performance Measures                                   FY 1999       FY 2000
Assessed river miles/lake acres/estuary square miles.that
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 estuary square miles
that have water quality supporting designated beneficial
uses, where applicable, for recreation.

TMDLs established by EPA. (cumulative)                                 166

TMDLs scheduled to be completed by the end of 2001.                      2,674
(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)              .                 2,167

State-established TMDLs approved, (cumulative)                           1,276

States electronically submit updated 305(b)                 29

States, Tribes, and Territories electronically submit updated                  43
305(b).

Submission, with Nat'l Watershed Forum, of a Watershed                    0
Rest. Progress Report to the President, etc. eval. progress &
recommend, any actions needed to improve progress toward
meeting clean water goals.
FY2001       FY2002       FY 2003
132K/6M                    no target      Mi/Acres
174K/5M/7K
269K/10M/1
8K


870

3,826
no target       Mi/Acres/Sq
               Mi
no target       Mi/Acres/Sq
               Mi
1,245
406K/9M/11
K


2,882

2,872
no target
9,200
TMDLs

TMDLs
Mi/Acres/Sq
Mi
TMDLs

TMDLs

States

States, etc,


Report
Baseline:        From the upcoming 2000 Report to Congress on the National Water Quality Inventory, the miles/aces quantities reported in the FY 2001column
                translate into the following percentages of waters: 66% of assessed river and stream miles; 73% of assessed lake, reservoir, and pond acres; and 49% of
                assessed estuary square miles have water quality supporting designated beneficial uses for aquatic life support. Likewise 69% of assessed river and
                stream miles, 63% of assessed lake, reservoir and pond.acres, and 53% of assessesd estuary square miles have water quality supporting their designated
                                                                   22

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                use for fish consumption.  86% of assesssed river and stream miles and 83% of lake, reservoir and pond acres support their designated use for drinking
                water supply.


Watershed Protection

In 2003         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.

In-2001         Water quality improved on a watershed basis such that 510 of the Nation's 2,262 watersheds will have greater than 80 percent of assessed waters
                meeting all water quality standards, up from 500 watersheds in 1998,

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         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.

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.

Performance Measures                                    FY 1999       FY 2000      FY200I       FY 2002       FY 2003
Watersheds that have greater than 80% of assessed waters                                510                         600          8-digit HUCs
meeting all water quality standards.

States submitting implementation plans for TMDLs for       23                                                                     States
waters impaired solely or primarily by NPS

States that are conducting or have completed unified          56                                                                     States
watershed assessments
High priority watersheds in which environmental                          324                                                      Watersheds
improvement projects are underway as a result of
implementing activities under the C WAP.


Baseline:        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.
                                                                   23

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State/Tribal Water Quality Standards
In 2003          36 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 2003          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          21 States and 19 Tribes have effective, up-to-date water quality standards programs adopted in accordance with the WaterQuality Standards regulation
                 and the Water Quality Standards program priorities.

In 2001          22% of Tribes 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.

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.

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          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.
Performance Measures                                    FY 1999
Tribes with monitoring and assessment programs.
(cumulative)

Pilot STORET/305(b) reporting projects with Tribes.

States with new or revised water quality standards that EPA
has reviewed and approved or disapproved and
promulgated federal replacement standards.

States and tribes with approved E. colt or enterococci
criteria.

States with new or revised water quality standards that EPA   17
has reviewed and approved or disapproved.

Models,methods,criteria developed/available for risk         1
characterization of surface water contaminants.
FY2000
FY2001
22


2

21
FY 2002
FY 2003
36
                                            20
                                            55
                             % Tribes

                             Pilot projects

                             States


                             States

                             States

                             List
                                                                    24

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Tribes with water quality standards adopted and approved     15            16            19                           30            Tribes
(cumulative).


Baseline;        In 1999, less than 5% of tribes had water quality monitoring and assessment programs appropriate for their circumstances and were 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. As of this May EPA was overdue in
                approving or disapproving 38 new or revised standards from 21 states and tribes.

Protecting and Enhancing Estuaries

In 2003         Restore and protect estuaries through the implementation of Comprehensive Conservation and Management Plans (CCMPs).

In 2001         Restored and protected 70,000 acres of estuaries through the implementation of Comprehensive Conservation and Management Plans (CCMPs).

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                                   FY 1999      FY 2000       FY200I        FY2002       FY2003
Priority actions or commitments initiated nationwide as part                               83                                         Actions
of the National Estuary Program since approval of the first
CCMP in 1991. (cumulative)

Acres of habitat restored and protected nationwide as part                                 70,000                .       25,000         Acres
of the National Estuary Program, (annual)
Completed  CCMPs                                .21           22                                                       CCMPs


Baseline:        As of January 2000, it is estimated that 65% of priority actions initiated and 400^000 habitat acres preserved, restored, and/or created.

Gulf of Mexico

In 2003         Assist the Gulf States in implementing watershed restoration actions in 14 priority impaired coastal river and  estuary segments.

In 2003         Support projects with the goal of creating, restoring, or protecting 2400 acres of important coastal and marine habitats per year (incremental).
                                                                  25

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[n 2001         Assisted the Gulf States in implementing watershed restoration action strategies (WRAS) or their equivalent in 3 7 priority coastal river and estuary
                segments.

In 2000         Assisted the Gulf states in implementing watershed restoration action strategies (WRAS) or similar plans to restore water-bodies in 14 priority impaired
                coastal river and estuary segments.

In 1999         Initiated the development of marine conservation plans for Gulf Coast seagrasses in 3 Gulf States.

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.
Performance Measures                                    FY 1999
Impaired Gulf coastal river and estuary segments
implementing watershed restoration actions (incremental).

TMDLs (1) scheduled to be completed; (2) submitted by
Gulf States for segments in the coastal watershed; and (3)
established by EPA and; (4) 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.

Increase acreage and restore or protect coastal and marine
habitats by 2009 (incremental).

Gulf states with marine conservation plans for seagrasses.     3

Gulf watersheds with State actions to reduce NFS loads to     3
Gulf growing waters.
FY 2000
31
FY2001
37


79/851 /32
FY 2002
FY 2003
14
                                           2,400
                             Segments


                             TMDLs




                             Miles, etc.



                             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.


Wetland and River Corridor Projects

In 2003         Support wetlands and stream corridor restoration and management and assessment/monitoring of overall wetland health.
                                                                   26

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In 2001          Supported 108 wetlands and stream corridor restoration and management projects and continued our efforts 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                                    FY 1999
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).

Watersh'ed-/community-based wetlands/river corridor        57
restoration projects funded by EPA's Five Star Program.

States/tribes developing formal programs and wetlands
assessment capacities, aimed toward measuring wetland
gain, loss and/or deterioration.

Watershed-based wetlands restoration projects to which
EPA has provided financial assistance (including 5-Star
projects) and/or has contributed significant technical
assistance, (cumulative)
                                                       FY 2000
                                                       74
FY2001
108
FY 2002
FY 2003
                                                                                                   550
                             Projects




                             Projects



                             Projects


                             States/Tribes



                             Projects
Baseline: ••       Going into FY99, 11 states/tribes had met the criteria for establishing formal assessment/monitoring programs.

Chesapeake Bay Habitat

In 2003         Improve habitat in the Chesapeake Bay.

In 2001
In 2000
Improved habitat in the Chesapeake Bay by reducing 48.1 million pounds of nitrogen, 6.84 million pounds of phospherous and restored over 69,000
acres of submerged aquatic vegetation.

In the Chesapeake  Bay watershed, 1,032 stream miles of migratory fish habitat was reopened through the provision of fish passages, construction and
restoration of 11,000 acres of oyster habitat, and 41% of wastewater flow to the Bay was treated by Biological Nutrient Removal.
                                                                    27

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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                                    FY 1999       FY2000  '    FY2001
Pounds reduction, from 1985 levels, of nitrogen and                                      48.1 / 6.84
phosphorus loads entering Chesapeake Bay. (cumulative)                                 M

Miles of streambank and shoreline restored with riparian                             ,711
forest buffers, (cumulative)

Wastewater flow to the Chesapeake Bay treated by           32            41            47
biological nutrient removal,  (cumulative)

Percent shallow waters that meet water clarity requirements
for submerged aquatic vegetation.
Acres of submerged aquatic vegetation (SAV) present in      63500         68,125        69,126
the Chesapeake Bay. (cumulative)

Acres of aquatic reef habitat designated, with construction     11000         11,000
and restoration of oyster reef habitat to occur within those
areas.

Agricultural, recreational and public lands that have          79
voluntary integrated pest management (IPM) practice
established in the Chesapeake Bay watershed (cumulative).

Stream miles of migratory fish habitat reopened through      524           1,032         816
provision offish passages, (cumulative)
                                                                                   FY 2002
FY 2003
                                                                                                 896
                                                                                                 58
                                                                                                 1,243
                                                                                                               Pounds
              Miles
              % WW flow
15
80,000
% waters
Acres
Acres
                                                                                                               % 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

In.2003
In 2001
70 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).

47% of Tribes 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).
                                                                   28

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Performance Measures                                    FY 1999       FY 2000      FY 2001       FY 2002       FY 2003
Tribes with a water program presence, (cumulative)                                      47 .                         70            % Tribes



Baseline;        As of 1999, approximately 20% of Tribes have a "water program environmental presence."


Research

Contaminated Sediments

In 1999         Submitted two journal articles for peer review on the biotreatrnent of PAH contaminated sediments and the treatment of chlorinated organics in
                sediment.  This information will assist regulators in developing strategies to treat dredged contaminated sediments and thereby recover scarce CDF
                capacity.

Performance Measures                                    FY 1999       FY2000      FY2001       FY2002       FY2003
Publish peer reviewed journal article on biotreatrnent of      1 Article   •
PAH contaminated sediment.

Publish peer reviewed journal article on treatment of         1 Article
chlorinated organics in sediment.



Baseline;

Scientific Rationale for Surface Water Criteria

In 2003         Provide the science and data management scheme for the 303(d) listing process to include classification systems for surface waters, watersheds, and
                regions so that states will have an improved and reliable means of identifying impaired water bodies.

In 2003         Provide updated models for stormwater management, and for allocating suspended solids and sediment loads, and related uncertainties for mixed land
                use  watersheds so that state and local resource managers can make improved scientifically-based decisions that protect aquatic resources and human
                health

In 2001          Developed (and published jointly as  part of Office of Water guidance) the framework for diagnosing adverse chemical pollutants in surface waters.

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 2000         EPA developed the scientific rationale for numerical criteria for surface waters by completing the products below and other research activities.
                                                                  29

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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 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.

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.
Performance Measures
Report on the requirements of submerged aquatic
vegetation in coastal environments.

Develop and provide a research strategy for integrating
econqmie 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 for surface waters.

Research strategy document to determine the impact of
landscape changes on wetland structure and function.

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 theStressor Identification
Guidelines.

Decision-support tools and guidance for watershed scale
assessments; report on risk characterization for watersheds.

Report on Sediment Toxicity.

Classification frameworks for geographic regions and at the
watershed, water body, and habitat scale!
FY 1999
30-SEP-1999


30-SEP-1999
FY 2000
FY2001
FY 2002
FY 2003
              30-Sep-2000
                             1


                             30-Sep-2001

                             0
                                                          assessment
                                                          requirements


                                                          strategy

                                                          guidance doc


                                                          assessment


                                                          compendium
                                                         report

                                                         report
                                                                   30

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Prepare a document for use by states to assist in modeling                                                             1             document
risk management options and restoration measures in
waterbodies impaired due to  suspended solids and
sediment.
Complete report on selected methods for integrating                           •                                       1             report
ecological risk assessment and economics to support
watershed decision-marking.



Baseline:        The State and EPA implementation of processes to identify impaired waters and restore them via a wide array of programs, including the TMDL
                process, requires assessment of waters and listing them as impaired. Recent Congressionally directed National Academy of Sciences studies note that
                the Agency's approach to listing impaired waters (the 3030(d) process) is not complete {i.e., a substantial quantity of the Nation's waters remain un-
                assessed) and is not scientifically robust (it appears that some listed waters may be inappropriately identified or mis-characterized). Accordingly, ORD
                has embarked on a focused research program to develop the monitoring, diagnostic, and classification schemes to improve the Agency and State
                approaches to this listing process. While this is a national requirement, regional and watershed, as well as biological, differences must be factored into
                the process.
The States and other reporting and assessment entities have listed sediments as a major cause of water body and watershed impairment. Urban storm water has also been
                identified as a major source of impairment. In addition the National Academy of Science report on TMDLs has called for the increasing characterization
                and use of uncertainty in modeling for TMDLs. In the case of storm water management, TMDL guidance may require permits for storm water and
                hence the urgent need to both improve the science of modeling such systems and the additional need to include uncertainty analysis techniques as part of
                the modeling process. Accordingly, ORD's research has been directed to provide updates in the modeling capability for this important national problem
                and to increase the capability of modelers and TMDL analysts to provide more robust and cost-effective outcomes for water bodies impaired by
                sediments.

OBJECTIVE 03: 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.

Reducing Industrial Pollutant Discharge

In 2001         Mill ions of pounds of industrial discharges of pollutants to the nation's waters were significantly eliminated through implementation of effluent
                guidelines.

In 2000         Industrial discharges of pollutants to the nation's waters were significantly reduced through implementation of effluent guidelines.
                                                                 31

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Performance Measures                                   FY 1999       FY2000       FY2001       FY2002      FY2003
Reduction in loadings for toxic pollutants for facilities                      3.8            10.3                                        Pounds
subject to effluent guidelines promulgated between 1992 &
2000, as compared to 1992 levels as predicted by model
projections, (cumulative)
Reduction in loadings for conventional pollutants for                       472.7          557.0                                      Pounds
facilities subject to effluent guidelines promulgated
between 1992 & 2000, as compared to 1992 levels as
predicted by model projections, (cum)
Reduction in loadings for non-conventional pollutants for                    135.6          922.0                                      Pounds
facilities subject to effluent guidelines promulgated
between 1992 & 2000, as compared to 1992 levels as
predicted by model projections, (cum)


Baseline:        Loading reduction estimates are based on model projections from effluent guidelines promulgated between 1992 and 1999. with both the numbers of
                affected facilities and permits estimated.  Flow data is not available for some point sources in PCS.

NPDES Permit Requirements

In 2003         Current NPDES permits reduce or eliminate loadings into the nation's waters of (1) inadequately treated discharges from municipal and industrial
                facilities (direct and indirect dischargers); and (2) pollutants from urban storm water, CSOs, and CAFOs.

In 2001          Maintaining current NPDES permits aid in the reduction or eliminatation of discharges into the nation's waters of inadequately treated discharges from
                municipal and industrial facilities; and pollutants from urban storm water, CSOs, and CAFOs.

In 2000         Current NPDES permits reduced or eliminated discharges into the nation's waters of (1) 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         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.

In 1999         71% of major point sources are covered by currentNPDES permits,

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         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.


                                                                  32

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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         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         Quantified the number of AFOs that were permitted by EPA and states and the extent the permits included manure management requirements.
Performance Measures                                    FY 1999       FY2000       FY2001
Major point sources are covered by current permits.                         72            75
States with current storm water permits for construction                     89            91
sites over 5 acres.
States with general NPDES permits for CAFOs > 1,000                     48            59
animal units or with individual NPDES permits for all
CAFOs > 1,000 animal  units consistent with the AFO
Strategy and guidance.
Permittees (among the approximately 900 CSO             92             90            87
communities nationwide) that are covered by NPDES
permits or other enforceable mechanisms consistent with
the 1994 CSO policy.
Minor point sources are covered by current permits.                         70            75
States with current storm water permits for all industrial                     83            92
activities operating in the state.
Loading reductions (pounds per year) of toxic, non-
conventional, and conventional pollutants from NPDES
permitted facilities (POTWs, Industries, SIUs, CAFOs, SW,
CSOs).
Pounds of pollutants prevented from being discharged into
waters due to field technical assistance at 775 municipal
wastewater treatment plants.
Permits on 303(d) listed waterbodies which implement EPA
approved TMDLs.
Completion of AFO documents                            1
Inventory of Animal Feeding Operations/estimate loadings    0
Quantity of AFOs which are permitted                      1
FY 2002
FY 2003
90%
              84%
              12,000
              90
                            Point Sources
                            % States

                            % States
                            % permittees
              Point Sources
              % States  \
              500 million    pounds
              pounds

              % permits

              Document
              Inventory
              List
                                                                  33

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Major point sources that have a currentNPDES permit.      71

Communities that will have local watersheds improved by    513
controls on CSOs and stormwater

Facilities w. a discharge requiring an indiv. permit that a)
are covered by a curr. indiy. 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,            Not available
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.
                                                                                                               % Maj. Pt.
                                                                                                               Srcs
                                                                                                               Communities
                                                                                                               % S W sources
Baseline:        As of May 1999, 72% of major point sources and 54% of minor point sources were covered by a current NPDES permit. Althe-endof.FY.99-, 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 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 2003
In 2001
In 2000
In 1999
Reduce point source loadings by closing out within 7 years projects funded under Clean Water Act Title II (construction grants) awarded after FY 91
and Special Project Stag Grants.

Reduced point source loadings by expediting completion of 37 projects funded under Clean Water Act Title II (construction grants) and special project
STAG grants.

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).
340 construction grants projects remain to be closed out.
Performance Measures                                   FY 1999
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.
                                                      FY200G
                                                      175
FY2001
79


138
FY2Q02
FY 2003
                            % grants


                            Projects
                                                                  34

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Construction grants projects (both those awarded before      340                                                                      Projects
FY92 and after FY91) remaining to be closed out.

Percentage of Construction Grants and Special Project                                                                  90             % grants
Grants closed out within 7 years of award.

Special project STAG grants closed out within 7 years of                                  78                                          % Grants
grant award.



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

In 2003         Develop effluent guidelines that when implemented are expected to reduce pollutant Joadings into surface waters.

In 2003         Develop regulations for cooling water intakes that when implemented are expected to reduce harm to aquatic life.

In 2001         Took final  action on 1 and proposed 4 effluent guidelines limitations for industrial categories that contribute significantly to pollution of surface waters.

In 2000         Took action on effluent guidelines limitations for industrial categories that contribute significantly to pollution of surface waters.

In 1999         Took final  action on one and proposed two effluent guidelines limitations for industrial categories that contribute significantly to pollution of surface
                waters.

Performance Measures                                    FY  1999      FY2000       FY2001        FY2002"      FY20Q3
Number of effluent guidelines proposed or promulgated.      2/1            1/4            4/1                                         Rules
Number of cooling water intake (316(b)) regulations   •                                                                 I/I             Rules
proposed or promulgated.

At least 150 million pounds of pollutants eliminated from                                                               150            million pounds
waters of the U.S. as a result  of two final effluent
guidelines.



Baseline:        Loading reduction estimates are based on model projections from the effluent guidelines, with both the numbers of affected facilities and permits
                estimated.
                                                                    35

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Clean Water State Revolving Fund: Annual Assistanc
In 2003         900 projects funded by the Clean Water SRF will initiate operations, including 515 projects providing secondary treatment, advanced treatment, CSO
                correction (treatment), and/or storm water treatment. Cumulatively, 8,800 projects will have initiated operations since program inception.

In 2003         Reduce point and nonpoint source loadings by managing the $34 billion in CWSRF assets to encourage use of state funds for state high-priority
                projects.

In 2001         933 projects funded by the Clean Water SRF initiated operations, including 400 projects providing secondary treatment, advanced treatment, CSO
                correction (treatment), and/or storm water treatment. Cumulatively, 7,452 SRF funded projects will have initiated operations since program inception.

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 2000         Effectively implemented the Clean Water State Revolving Fund (CW SRF) program to ensure annual assistance of approximately $2 billion.

In 1999         30 states met "pace of the program" measures for loan issuance and pace of construction.

In 1999         41 states and Puerto Rico conducted separate annual audits of their SRFs.

                                                        FY1999       FY2000       FY2001       FY2002
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    30
for loan issuance and  construction (cumulative).
States and Puerto Rico that conduct separate annual audits
of their CW SRFs

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 the Clean Water
State Revolving Fund Program.
                                                        41
20


42
FY2001
7,452


16


24


42
                                           FY2003
                                           8,800


                                           20
                                                                                                                 90%
SRF projects


States


States


States


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

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                loan 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. N1MS shows 3,909 SRF projects initiated as of June 1998.



Improving Wastewater Sanitation in Indian Country

In 2003         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         Increased protection of human health in Indian Country by providing adequate wastewater sanitation to over 10,000 homes in Indian Country with
                inadequate wastewater sanitation systems.

In 2000         Reduced, by 6%, the number of homes  in Indian Country with inadequate wastewater sanittion systems.

Performance Measures                                   FY 1999      FY2000      FY2001        FY2002       FY 2003
Percent of homes in Indian Country whose residents are                    6             14                          26            % Homes
provided with adequate wastewater sanitation systems
though funding from the CW SRF Tribal Set Aside
Program, (cumulative)



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 2003         Enhance public health and environmental protection by securing the nation's critical wastewater infrastructure through support for homeland security
                preparedness, including vulnerability assessments, emergency operations planning, and system operator training.

In 2001         Protected human health and avoided increased point source loadings by permitting over 750 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        FY 2002       FY2003
Wastewater treatment facilities maintaining permitted                      872          776                                       Facilities
performance levels through assistance under Section 104(g)
of the CWA.
                                                                  37

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Percent of the population served by, and the number of,                                                               65%/5000     %pop/systems
large and medium-sized (10,001 and larger) Publicly
Owned Treatment Works (POTWs) that have taken action
for homeland security preparedness.



Baseline:        In 1998,890 facilities were assisted to improve, maintain, or achieve compliance.


Wastewater Treatment

In 2003         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          Reduced 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                                   FY 1999       FY2000       FY2001       FY2002       FY2003
States which adopt the Voluntary Management Guidelines                                 0                            4             States
for On-site Wastewater Treatment Systems.

CW SRF projects that have initiated operations.                           6,5.19                                                    SRF projects
(cumulative)

Additional people who will  receive the benefits of           3.4           2.07                                •                     M People
secondary or better treatment of wastewater



Baseline:        The Agency's National Information Management System shows 3,909 SRF projects initiated as of June 1998.

Reducing Nonpoint Source Pollution

In.2003          Reduce nonpoint source sediment and nutrient loads to rivers and streams.

In 2001          Reduced nonpoint source sediment and nutrient loads to rivers and streams by ensuring that 5% of AFOs have developed Comprhensive Nutruient
                Management Plans (CNMPs).
                                                                  38

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Fn 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         Fn 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                                   FY 1999       FY 2000
AFOs for which Comprehensive Nutrient Management
Plans (CNMPs) are developed, (cumulative)

Clean Water SRF loaned for projects to prevent polluted                    6
runoff.

Number of coastal States and Territories with fully
approved coastal nonpoint pollution control programs under
the Coastal Zone Act Reauthorization Amendments of
1990. (cumulative)

Clean Water SRF loaned for projects to prevent polluted
runoff, (annual)

EPA approvals of state submitted upgraded nonpoint source  11             49
programs (incorporating the 9 key elements outlined in
national Nonpoint Source Program and Grants Guidance for
FY97 and Future Years).
                                                                    FY2001
                                                                    5%
FY 2002       FY 2003
                                                                                                29
                                                                                                200
                            AFOs
                                                                                                              %CWSRF
                            States/Tribes
                             M Dollars
                                                                                                              States
Baseline:
As of September 1998, 24 states were funding nonpoint and estuary projects with their SRFs.
                                                                  39

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GOAL 03: 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.

       OBJECTIVE 01: 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).

       Decrease Risk from Agricultural Pesticides

       In 2003         Decrease adverse risk from agricultural uses from 19.95 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.

       In 2001         The Agency registered 9 new chemicals, exceeding its target by 2, and 267 new chemicals, underperforming its target by 8-3.

       In 2001         The registration of new agricultural  pesticides, and reregistration of older agricultural pesticides, were done under the strict health-based standard of
                       FQPA: "reasonable certainty of no harm." "Safer" pesticides are those that meet a stricter set of criteria.

       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 chemieals/biopestieides.

       In 1999         In FY 1999, EPA registered 19 additional reduced risk pesticides, including 13 biopesticides. 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                                 FY 1999       FY2000      FY200I       FY2002      FY 2003
       Register safer chemicals and biopesticides                 19            13           92                         118          Regist. (Cum)

       New Chemicals                                       7             9            53                         67           Regist. (Cum)

       New Uses                                            681          427           1896                       2679         Actions (Cum)



       Baseline:        The baseline year is 1996; baseline quantities are 0.  1996 is the year FQPA was enacted with its new risk reduction, safety standard "reasonable
                       certainty of no harm" for pesticides used on foods. Cumulative totals measured from baseline for safer chemicals, biopesticides, new chemicals, and new
                       uses are displayed because this more clearly shows progress implementing FQPA than would a display of single-year results.
                                                                      40

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Reduce use of highly toxic pesticides

In 2003         Occurence of residues of carcinogenic and cholinesterase inhibiting neurotoxic pesticfdes on foods eaten by children will have decreased by 20 percent
                (cumulative) from their average 1994 to 19% levels.

In 2001         Data will be available in March 2002.

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                                     FY1999        FY2000       FY2001       FY2002       FY2003
Reduction of detections on a core set of 19 foods eaten by                    15%                                        20%           Reduced
children relative to detection levels for those foods reported                                                                             Detect.
in 1994-1996.



Baseline:        Percent occurrence of residues of FQPA priority pesticides (organophosphates and carbamates) on samples of children's foods in baseline years 94-96.
                Baseline percent is 33.5% of composite sample of children's foods: apples, apple juice, bananas, broccoli, carrots, celery, grapes, green beans (fresh,
                canned, frozen), lettuce, milk, oranges, peaches, potatoes, spinach, sweet corn (canned and frozen), sweet peas {canned and frozen), sweet potatoes,
                tomatoes, arid wheat.


Reduced Risk Pesticides

In 2003         At least six percent of acre-treatments will use applications of reduced risk pesticides.

Performance Measures                                     FY 1999        FY2000       FY2001       FY2002       FY2003
Percentage of acre treatments with reduced risk pesticides                                                               6%            Acre
                                                                                                                                  Treatments


Baseline:        Baseline is 1998 acre-treatments; 3.6% of total acreage. Each year's total acre-treatments (all pesticides and reduced risk pesticides), reported by
                USDA's National Agricultural Statistical Survey (NASS), serve as the basis for computing the percentage of acre-treatments using reduced risk
                pesticides. Acre-treatments count the total number of pesticide treatments each acre receives each year.
                                                                    41

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OBJECTIVE 02: 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 certainly of no harm" will be eliminated.

Reassess Pesticide Tolerances

In 2003          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 environment. Also consider the unique exposure scenarios such as subsistence lifestyles of Native Americans in regulatory decisions.

In 2003          By the end of2003 EPA will reassess a cumulative 68% of the 9,721 pesticide tolerances required to be reassessed over ten years and complete
                reassessment of a cumualtive 75% of tolerances of special concern in protecting the health of children.

In 2001          EPA reassessed 40% of tolerances requiring reassessment under FQPA and issued a cumulative 72% of total REDs required, achieving both targets.

In 2001          EPA reregistered 856 products, exceeding its target by 14%.

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 Aug. 1999.

Performance Measures                                  FY 1999      FY2000      FY2001      FY2002       FY2003
Tolerance Reassessment                                 1445           121           40%                        68%          ToIerances(Cu
                                                                                                                           m)
REDs                                                 14           6            71.6%                      83%          Decisions
                                                                                                                           (Cum)
Product Reregistration                                   746          552           856                        750           Actions

Tolerance reassessments for top 20 foods eaten by children                               43.5%                      75%          Tolerances(Cu
                                                                                                                           m)


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.
                                                                42

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GOAL 04: 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,

       OBJECTIVE 01: 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.

       Agriculture Partnership

       In 2003         Focus partnership development that indicates a successful transition on minor use commodity groups which use high risk pesticides (organoposphates,
                      carbamates and B2 carcinogens).

       In 2003         With USDA, universities, state lead agencies, and other stakeholders, promote the research and adoption of reduced risk pest management strategies
                      (pilot APG).

       In 2001         EPA began implementation of 12 model agricultural pilot projects.

       In 2000         Agricultural partnerships were initiated in four pilot regions: 4,6,9, and 10. QPPTS" goal was exceeded due to RIO's initiating several mini grants for
                      start up projects.

       Performance Measures                                FY 1999      FY2000     FY2001      FY-2002      FY 2003
       Model agricultural partnership pilot projects                            15           12                                     Pilots

       Successful transitions from high risk pesticides to effective                                                      20-30         Transitions
       alternative pest management practices

       Collaboration/outreach efforts                                                                             40            Efforts



       Baseline;        Under development


       Pesticides in Groumhvater

       In 2003         Pesticides with high leaching and persistence potential managed to protect groundwater resources from contamination.


                                                                  43

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Performance Measures                                  FY1999       FY2000      FY2001       FY2002      FY2003
Pesticides with high leaching and persistence potential                                         '                    25            Pest. (Cum)
managed to protect groundwater



Baseline:       Thirty-one pesticides have been identified as of March 2000, Baseline revised in FY02 to administrative measure that tracks regulatory decisions that
               reduce impact of high leaching and persistent pesticides on the environment because of concerns about NAWQA data; i.e., it may not be replicating
               survey due to funding and survey design which may use different survey sites from year to year. New PM targets will be established in FY02.


Reduce Risk to Endangered Species

In 2003        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.

Performance Measures                                  FY 1999       FY 2000      FY2001       FY2002      FY 2003
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 2003        Reduce by 20 percent from 1995 levels the number of incidents involving mortalities to terrestrial and aquatic wildlife caused by pesticides.

Performance Measures                                  FY 1999       FY2000      FY2001       FY 2002      FY 2003
Reported incidents involving mortalities to birds and fish    .                                                      20%          Reduction



Baseline;       80 reported bird incidents (involving 1150 estimated bird casualties); 65 reported fish incidents (involving 632,000 estimated fish casualties)


OBJECTIVE 02; REDUCE RISKS FROM LEAD AND OTHER TOXIC CHEMICALS

By 2007, significantly reduce the incidence of childhood lead poisoning and reduce risks associated with polychlorinated biphenyls (PCBs),
mercury, dioxin, and other toxic chemicals of national concern.
                                                               44

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Lead Regulatory Standards

In 2001          EPA finalized a rule that establishes standards regarding hazardous levels of lead in paint, dust and soil.

In 2000          A change in RCRA policy in August 2000 eliminated the need for issuance of this rule and accomplished its objectives.

In 1999          In FY  1999, EPA initiated two regulations necessary for a national program to address the hazards from lead-based paint. The Lead Debris Disposal
                Rule was proposed in December 1998. Comment review and final rule development for the Lead Hazard Standards Rule continued in 1999.
Performance Measures
Lead Debris Disposal Rule
Lead Hazard Standards Rule - develop Final
FY 1999      FY2000       FY2D01       FY2002       FY2003
Comments     Withdrawn                                              Rule
Comments     Final
1 final
              Rule
Baseline:

Safe PCB Disposal

In 2003          Promote safe disposal of PCB-contaminated equipment and waste.

In 2001          Capacitor, Transformer and Bulk Waste data reported by industry on a calendar year basis and not available until September 2002.
The Transfomer Reciassicifcation Rule was published on April 2,2001.

In 2000          The data on FY 2000 PCB disposals will be available by May 1,2002.

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                                  FY 1999      FY2000
Revisions to PCB Disposal Amendments, Non-liquid PCB    1
use authorization, Transboundary movement of PCBs

Safe Disposal of Transformers

Safe Disposal of Capacitors
Safe Disposal of Bulk Waste

Develop Final Transformer Reclassification Rule                          Delayed
                            FY2001
              FY 2002
FY 2003
                                                                      Proposed
Avail. 5/02
Avail. 5/02
Avail. 5/02
Avail. 9/1/02
Avail. 9/1/02
Avail. 9/1/02
10000
25000
660,OC
                                                                      Transformers

                                                                      Capacitors
                                                        660,000,000    Kg Bulk
                                                                      Waste
                                                                      Rule
                                                                 45

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Baseline:        Baseline for Capacitors: 1.85 million units; Transformers 2.20 million units; baseline for bulk waste disposal is based on annual disposal of PCB bulk
                waste from 1990-1995.
Lead Certification and Training of Lead Abatement
In 2003         Reduce lead exposure in housing units and in the deleading of bridges and structures.
In 2001         EPA did not finish this rule.
In 2001         More than 2,000 individuals were certified as lead abatement professionals. This number was estimated from the monthly average of incoming
                Certification Applications. An improved tracking mechanism is being negotiated with a contractor for future years.
In 2000         Additional legal requirements for lead-based paint abatement certification and training for the tribes has delayed development -of two tribal programs.
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
                FTEcuts.
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 wi 11 be place.
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 nottake on the program, EPA will run certification and accreditation.
Performance Measures                                     FY 1999       FY200D
Develop state programs for the training, accreditation and     28         '   36
certification of lead-based paint abatement professionals.
Lead Renovation Information Rule                          Final
A Federal training, accreditation and certification program     22            19
will be established and administered in states which choose
not to seek approval from EPA to administer.
Develop proposed rules for lead paint abatement/ renovat.     2 Proposed     Delayed
& remod, and  bldg./super. rule
Develop tribal programs for training, accreditation and                      2
certification of lead-based paint abatement professionals.
Evaluate results from pilot test of indicators and modify for
implementation nationwide.
Building and Superstructure Rule
FY200I
FY 2002
FY 2003
                               Proposed
                             States

                             Rule
                             Federal

                             Rules

                             Trib.Prog
                             (cum)
                             Analysis

                             Rule
                                                                   4t

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Certified individuals only in states with federally
administered program
Certified nationally (federally-administered and state-
administered program)
Number of Abatements
Pilot Regional effort to monitor reduction in lead exposures
Renovation and Remodeling Rule
Administer data collection grants to Tribes to determine
Tribal lead exposure
>2,000
                          5000
             Certified
             Certified
incomplete
pilot (TBD)  'Notifications
3            Regions
1 Proposed    Rule
15           Grants
Baseline:       Baseline will be established in 2001.   (Note: 2003 goal of 5000 assumed that both EPA and state certifications would be counted. We have been
               unable to confirm when/if we will get state data, so are now limiting this to EPA data.)
Rule development was initiated in 1998; no consistent standard for abating lead paint for renovation or buildings/superstructures existed prior to Title X.

OBJECTIVE 03: 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.

New Chemicals and Microorganisms Review
In 2003         Of the approx. 1,800 applic, for new chem. and microorganisms submitted by industry, ensure those marketed are safe for humans and the envir.
               Increase proportion of commer. chem. that have undergone PMN review to signify they are properly managed and may be potential green altern. to
               exist, chem.
In 2001         EPA reviewed 1,770 Premanufacturing Notices. By the end of 2001,21 percent of all chemicals in commerce had been assessed for risks.
In 2000         AH new chemical  pre-manufacturing notification submissions were reviewed within the required timeframe.
In 1999         EPA used TSCA authorities to review 1,717 premanufacture notices (P-MNs) and exemptions. EPA took control actions on 20 of the 31 notices
               involving PBTs. EPA received 172 toxicity tests on over 103 chemicals.
                                                             47

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Performance Measures
TSCA Pre-Manufaeture Notice Reviews

Notice of Commencements
FY 1999
1717
FY2000
1838
FY2001
1770

21.0
                                                                                                   FY2002
FY 2003
1800

22.3%
                                                                                                                               Notices

                                                                                                                               NOCs(Cum)
Baseline:        In FY 2000, there were potentially 78,598 chemicals in commerce; 15,992 of these chemicals had gone through the TSCA Premanufacture Notice
                (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.
Testing of Chemicals in Commerce for Endocrine Dis

In 2003         Through the priority setting process, narrow the universe of 87,000 chemicals to identify those that are potential endocrine disrupters.

In 2001         The two screening assays were not completed.

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                                    FY 1999
Develop program to screen 5,000 chemicals for endocrine     Developed
disruption potential

Screening Assays Completed

Federal Register Notice on the proposed first list of
chemicals for Tier 1 Screening.
                                                                      FY 2000
                            FY200I
                            FY 2002
                             FY 2003
                                                                                                                               Program


                                                                                                                               Screening
                                                                                                                               assay
                                                                                                                               FR Notice
Baseline:        The non-prioritized universe of chemicals that needs to be considered for prioritization includes: pesticide active ingredients, pesticide inert ingredients,
                chemicals on the TSCA Inventory, environmental contaminfants, food additives, Pharmaceuticals, cosmetics, nutritional supplements, and representative
                mixtures. "Priority-setting" refers to the determination of priorites for entry into Tier I Screening.

Chemical Right-to-Know Initiative

In 2003         Provide information and analytical tools to the public for assessing the risks posed by toxic chemicals.

In 2001         Data was obtained from test plans submitted by  industry for 724 chemicals already in commerce.
                                                                  48

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In 2000
In 2000
In 1999
In 1999
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.
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.
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 approxi 2,800 HPV chemicals.
The TRI Persistent Bioaceumutative Toxics rule was proposed. The final rule was published in the Federal Register in October 1999 (FY 2000).
                                                      FY2000      FY2001      FY 2002       FY 2003
Performance Measures
TSCA Chemical Inventory Update Rule
Addition of PBTs to TRI rulemaking
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.
Provide current national risk screening information to the
public
Completion of community risk identification analyses
Complete EPA-HQ risk-based priority setting exercise
Complete EPA risk-based regional office priority-setting
system
Complete state risk-based priority setting exercises
Expand use of risk screening environmental indicators tools
to other countries that adminster pollutant release and
transfer registries
Make screening quality health and environmental effects
data publicly available for 2,800 HPV chemicals
Number of Peer Reviews Conducted with Industry
Number of initiated/completed risk assessments for
chemicals
FY 1999
Proposed
Final
                                                      2155

                                                      181

                                                      0

                                                      I
                             724
                                                                                                 16%

                                                                                                 2
                                                                                                 4
Rule
Rule
Chemicals

1
2
5
5
6
1
Chemicals
Tools
Analyses
Analyses
Analyses
Exercises
Country
                                                                       Data (Cum)

                                                                       Reviews
                                                                       Actions
                                                                  49

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Number of submissions using exposure assessment                                                   •                 80%          Submiss,
methods, databases, and models,                                                                                                  (cum)
Number of users of exposure assessment methods,                                                                    500           Users
databases,- and models

P2 and Risk Management Guidance Documents                                                                       1             ' Docs./Manual

Training Workshops                                                                                               3             Workshops

Establish state toxics management programs                                                                          1             Pilot Programs



Baseline:        Release of national risk screening information first occurred in FY99,  First community risk identification analysis were completed in FYOO. First
                National, Regional, and State level risk-based priority setting excercise will be completed in FY02,  First expanded use of risk screening tool by other
                countries will occur in FY02.  As data is collected it is available on http://www.epa.gov/chemtrk,


Expand Local Information on Toxic Substances

In 2001

Performance Measures                                    FY 1999       FY2000       FY2001       FY 2002       FY 2003
Provide current national risk screening information to the                                 1                                          Tools
public

Completion of community risk identification analyses                                     2                                          Analyses



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 FY 2002.  First expanded use of risk screening tool by
                other countries will occur in FY 2002.


Risk Screening Environmental Indicators

In 2003          Reduce by 3.0% cum. 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.

In 2003          Reduce by 4.0% cum. the risk-related score assoc. with air & water release pathways for chronic human hlth calc. for releases & transfers of toxic chem.
                rptd to TRI from the level calc. for the preceding year,after adjusting for chgs in production indices for the manuf,mining & utilities sectors
                                                                  50

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Performance Measures                                   FY 1999       FY2000       FY2001       FY2002      FY2003
Reduction in the year 2002 production-adjusted RSEI                                            '                     3.0%          Index
hazard-based score of releases and transfers of toxic
chemicals reported to TRI from the level calculated for
2001 (reported in 2004),

Reduction in the year 2002 production-adjusted RSE1 risk-                                                            4.0%          Index
based score of releases and transfers of toxic chemicals
reported to TRI from the level calculated for 2001 (reported
in 2004),



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.


PBT Profiler

In 2003         Provide industry with user-friendly computerized tools that allow new chemical product alternatives to be evaluated at early stages of design process.

Performance Measures                                   FY 1999       FY2000       FY2001       FY 2002      FY2003
Number of users of the PBT Profiler                                                                                100            Users

Number of Chemicals Profiled                                                                                     1000          Chemicals

Number of Companies Participating in Sustainable Futures                                                            25             Participants

Number of Self-Audited New Chemical Product                                                                     100            Alternatives
Alternatives


Baseline:        In FY 2002 the Agency made powerful risk screening software (the P2 framework) broadly available to chemical industry, including providing
                regulatory relief as an incentive to drive chemical risk screening and P2 outcomes. In FY 2003, the Agency will audit Premanufacture submissions to
                determine the number of companies participating and the total number of self-audited product alternatives.

Protect from Acute Exposure to Extremely Haz, Chem

In 2003         Establish short-term exposure limits for a wide range of acutely toxic substances that are protective of general public, including children, infants, the
                infirmed, and the elderly through the Acute Exposure Guideline Levels (AEGL) Program
                                                                  51

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Performance Measures                                   FY 1999       FY2000       FY200!       FY2002       FY 2003
Chemicals Addressed by AEGL Program                                                                            33            Chemicals

Number of AEGL values generated that will protect                                                                  495           Values
workers and general public



Baseline:        Baseline is 2002; calculation methodology by addition of AEGL values (10 minute, 30 minute, 1 hour, 4 hour, and 24 hour exposure periods) and
                numbers of chemicals addressed,


Research

Research on Commercial Chemicals and Microorganism

In 2003         Provide a strategic framework for developing an integrated suite of tools that will enhance OPPTS procedures for assessing the risks to human health
                and ecological systems associated with commercial chemicals, microorganisms, and genetically modified organisms.

In 2001         EPA produced guidance on the use of structure activity relationships, as well as data on exposure of farm applicators to agricultural pesticides 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                                   FY 1999       FY2000       FY2001       FY2002       FY 2003
Peer reviewed publication on the in vitro screening methods  1 Publication
for one-electron reactions.

Develop an animal model to assess susceptibility of the                      1                                                        model
developing immune system to environmental contaminants.
Guidance in the use of Structure Activity Relationships                                    1                                          guidance
(SAR) computer technologies.
Use QSAR models and animal test methods to  meet                                                                  09/30/2003    methods
regulatory objectives associated with tiered human health
and ecological risk assessments of commercial chemicals,
microorganisms, and GMOs.
                                                                  52

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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 ftilly 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.


OBJECTIVE 04: ENSURE HEALTHIER INDOOR AIR.

By 2005,  16 million more Americans than in 1994 will live or work in homes, schools, or office buildings with healthier indoor air.

Healthier Residential Indoor Air

In 2003         834,400 additional people will be living in healthier residential indoor environments.

In 2001         An additional 890,000 additional people are 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       FY2003
People Living in Healthier Indoor Air   '                   1,322,000      1,032,000      890,000                     834,400       People



Baseline:        1. By 2003, increase the number of people living in homes built with radon resistant features to 3,635,000 from 600,000 in 1994. (cumulative) 2. By
                2003, decrease the number of children exposed to  ETS from  19,500,000 in 1994 to 16,889,000. (cumulative) 3. By 2003, increase the number of people
                living  in radon-mitigated homes to 1,625,700 from 780,000 from 1994. (cumulative) 4. By 2003, increase by 122,400 the number of people with  asthma
                and their caregivers who are educated about indoor air asthma triggers.

Healthier Indoor Air in Schools

In 2003         1,050,000 students, faculty and staff will experience improved indoor air quality in their schools.

In 2001         An additional 1,930,000 students, faculty and staff are experiencing improved indoor air quality  in their schools.

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.
                                                                 53

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Performance Measures                                FY 1999      FY 2000      FY2001      FY2002      FY 2003
Students/Staff Experiencing Improved 1AQ in Schools       1,050,000     2,580,000     1,930,000                  1,050,000     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 1AQ "Tools for Schools" Guidance implementation began in 1997. For FY 2003, the program projects an additional 2,000 schools will
               implement the guidance and seeks to obtain implementation commitments from 5 of the 50 largest school districts in the U.S. with an average of
               140,000 per district. (Additional, not cumulative since there is not an established baseline for good IAQ practices in schools.)

OBJECTIVE 05: 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.  In 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.

Green Chemistry Challenge Awards

In 2003         Continue to stimulate development of new safe ("green") chemicals and safe chemical processes through public recognition for outstanding
               achievements in this field.

In 2001         The program received information on a total of 75 processes/products.

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 emmissions of hazardous substances, savings in capital investments, reduced worker exposure, and improved product
               yields.

Performance Measures                                FY 1999      FY2000      FY200I      FY 2002      FY 2003
Green Chemistry Challenge Award                     . 134          74                                                  Applications

Alternative feed stocks, processes, or safer products                                   75                        160          Prod/proc
identified through Green Chemistry Challenge Award                                                                         (cum)



Baseline:        Baseline is zero in FY 2000.
                                                             54

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Toxic Release Inventory (TRI) Pollutants Released

In 2003         The quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or combusted for energy recovery in 2003, (normalized for  '
                changes in industrial production) will be reduced by 200 million pounds, or 2%, from 2002. This data will be reported in 2005.

In 2001         No conclusions can be drawn regarding changes in TRI Non-recycled wastes from calendar year 2000 to calendar year 2001 without data.

In 2000         EPA exceeded its target of a reduction of 200 million pounds of TRI pollutants released.

In 2000         Projections for Form Rs submitted are based on past year submissions.

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                                   FY 1999       FY2000       FY2001       FY 2002       FY 2003
Form Rs with Source Reduction activities (cumulative)                     134,000                                                  Facilities

Reduction of TRI non-recycled waste (normalized)           I.lBIbsincr.   405 Million    not available                  200 Million    Ibs



Baseline:        This  APO measures changes in TRI Non-Recycled Wastes. TRI data are reported to EPA by facilities by July 02, and compiled and reported publtcally
                by EPA in Spring 03. EPA will do an analysis to determine a new target.


Managing PBT Chemicals

In 2003         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         15 new PBT prevention / reduction projects initiated through regional offices in 2001. The list of additional priority PBTs was not published.

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.

Performance Measures                                    FY 1999       FY2000       FY2001       FY2002       FY2003
Initiate risk reduction actions in accordance with National     11                                                                      Chemicals
Action Plan

Integrate level II chemicals into National Action Plans.                     19                                                       Chemicals
                                                                  55

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Number of prevention and reduction Regional projects                      12            25                           45            Grants (Cum)
initiated.

Publish final list of additional priority PBTs.                                             0                                          List

Hospital Mercury Project                                                                                           100           Participants

Tribal PBT Actions      ,                                                                                          4             Grants



Baseline:         Level II chemicals:  For PBT risk reduction projects, the baseline is zero projects in FY 1999.  Final List of Priority PBTs: The baseline for hospital
                 mercury project is under development. The baseline for number of new multipIe-PBT strategies completed is zero in 2001.


Safer Alternative Cleaning Technologies

In 2003          Expand the use of cleaner technologies in priority industries, including reduction in the use of perchloroethy lene from 1997 levels.

In 2001          EPA continued to work with industry on reducing the use of the highly toxic chemical perchloroethy lene in the dry cleaning industry.

In 2001          The market share for cleaner inks is 6  percent. The market share for cleaner adhesives increased to 65%.  In FY2001, EPA established partnerships with
                 8 detergent formulation industry entities, including 15 formulations.

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 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.

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       FY2000       FY2001      FY2002       FY2003
Percentage increase in the use of alternative cleaning         10%           36%                                         .     .        Use-
technologies by garment care industry.                                                                                             cumulative

For inks, track size of flexographic ink industry and market                  0%            6%                          15% (cum)     Market share
share ($ and Ibs) of cleaner inks.

For adhesives, track size of cleaner adhesive industry                                      65%                         70% (cum)     Market Share
market share.

For eco-friendly detergents, track the number of laundry                                   18                           12            Partners (cum)
detergent formulator industry partners.

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Perchloroethytene reduction
                                                                    not available
                                           40%
                                           Use Reduct
                                           cum
Baseline:
In 1997,83 million pounds perchloroethylene (perc) used; in 1998,72 million pounds of perc used; in 1999,63 million pounds of pere used.
Eco-friendly detergents baseline is 1997: 0 partners and 0 detergents. The adhesives baseline is 1997 which reflects the beginning of tracking market share — the measure
                is the increase in market share from the baseline. Baseline for flexographic inks measure is 1998 which reflects the beginning of tracking market share.

Reducing PBTs in Hazardous Waste Streams

In 2003         Reduce waste minimization priority list chemicals in hazardous waste streams by 43% to 86 million pounds by expanding the use of state and industry
                partnerships and Regional pilots

In 2001         A draft trends report that shows changes from 1991 to 2000 was prepared in FY2001 and is currently undergoing intergovernmental review.

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.
Performance Measures
Issue final guidance on PBT Identification

 Issue final PBT list.
Prepare a trends report that shows Toxic Release Inventory
changes from 1991  to 1998.
Reduction in generation of priority list chemicals from 1991
levels.
                                       FY 1999
                                       0
FY2000

0
FY2001
FY2002
FY 2003
                                                                                                43
                                           document

                                           list

                                           report


                                           percent
Baseline:
1991 Toxic Release inventory data will be used to determine reductions.
Municipal Solid Waste Source Reduction

In 2003          Divert an additional 1% (fora cumulative total of 32% or 74 million tons) of municipal solid waste from land filling and combustion, and maintain per
                capita generation of RCRA municipal solid waste at 4.5 pounds per day.
                                                                  57

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In 2001         FY2001 data is not available for the diversion of municipal solid waste from land filling and combustion or maintaining per capita generation of RCRA
               municipal solid waste. Analysis of FY 2001 data is anticipated by September 2003.

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         In FY 1999, 28% or 64 million tons of municipal solid waste was diverted from land filling and combustion, and the per capita generation was raised to
               4.6 pounds per day. Increased per capita generation is tied to robust economic expansion.

Performance Measures                                  FY 1999      FY2000       FY2001       FY2002       FY 2003
Millions of tons of municipal solid waste diverted.           64            Not           not available                 74           million tons
                                                                  Available
Daily per capita generation of municipal solid waste.         4.6           Not           not available                 4.5           Ibs. MSW
                                                                  Available


Baseline:       1990 levels established at 17% of MSW diverted and 4.3 pounds MSW per capita daily generation.
OBJECTIVE 06: ASSESS CONDITIONS IN INDIAN COUNTRY

By 2005, EPA will assist all federally recognized tribes in assessing the condition of their environment, help in building tribes' capacity to
implement environmental management programs, and ensure that EPA is implementing programs in Indian country where needed to address
environmental issues

Tribal Environmental Baseline/Environmental Priori

In 2003         In 2003, AIEO will evaluate non-Federal sources of environmental data pertaining to conditions in Indian Country to enrich the Tribal Baseline
               Assessment Project.

In 2001         Baseline environmental assessments were collected for 207 Tribes.

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.

In 1999         10% of Tribal environmental baseline information was collected and 46 additional tribes have tribal/EPA environmental agreements or identified
               environmental priorities.
                                                               58

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Performance Measures                                    FY 1999       FY2000       FY2001       FY2002       FY2003
Tribal environmental baseline information collected          10             16                                                        % Baseline

Tribes with Tribal/EPA environmental agreements or         46             4                                                         Tribes
identified environmental priorities

Environmental assessments for Tribes, (cumulative)                                       207                                        Tribes, etc.

Non-federal sources of environmental data pertaining to                                                                20            Data sources
conditions in Indian Country.



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.
                                                                   59

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GOAL 05: 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 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,

       OBJECTIVE 01: 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 Superfund, RCRA, underground storage tank (UST), and brownfield 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.

       Leaking Underground Storage Tank Cleanups

       In 2003        EPA and its partners will complete 22,500 Leaking Underground Storage Tank (LUST) cleanups for a cumulative total of approximately 313,300
                     cleanups since 1987.

       In 2001        19,074 LUST cleanups were completed in FY 2001.

       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                                FY 1999      FY2000      FY2001      FY2002     FY2003
       LUST cleanups completed,                            25,678       20,834        19,074              •     22,500       cleanups


       Baseline:'       EPA completed a total of 249,760 LUST cleanups from 1987 through 2000.


       Superfund Removal Response Actions

       In,2003        Conduct 275 Superfund removal response actions for a cumulative total of 7,138 removal response actions since 1982.

       In 2001        EPA conduced 302 removal response actions, for a cumulative total of 6,588 over the life of the program.

       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,


                                                                 60;

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In 1999         EPA exceeded the target by conducting 356 removal response actions.

Performance Measures                         .         FY 1999       FY2000       FY2001"       FY2002       FY2003
Removal response actions.                               356           375           302                         275           removals
Amount of liquid based waste removed.                                     '                          .             no target       gallons

Amount of solid waste removed.                                                                                   no target       cubic yards



Baseline:        EPA completed a total of 6,286 removal response actions from 1982 through 2000.


Superfund Cleanups

In 2003         EPA and its partners will complete 40 Superfund cleanups (construction completions).

In 2001         EPA completed construction at 47sites, achieving 804 construction completions over the life of the program.

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       FY 2002       FY 2003
Construction completions.                               85            87            47                          40            completions



Baseline:        EPA completed a total of 757 construction completions from 1982 through 2000.


Superfund Cost Recovery

In 2003         Ensure trust fund stewardship by getting PRPs to initiate or fund the work and recover costs from PRPs when EPA expends trust fund monies. Address
                cost recovery at all NPL and non-NPL sites with a statute of limitations (SOL) on total past costs equal to or greater than $200,000.


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 fund stewardship by recovering costs from PRPs when EPA expends trust fund 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.
                                                                 61

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Performance Measures                                   FY 1999      FY2000       FY2001       FY2002       FY2003
Refer to DOJ, settle, or write off 100% of Statute of         99%          98.5           97,8                         100           Percent
Limitations (SOLs) cases for SF sites with total
unaddressed past costs equal to or greater than $200,000
and report value of costs recovered.



Baseline:        In FY 98 the Agency 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 Participat

In 2003         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.
In 2001
In 1999
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.

                Achieved >70% responsible party participation in new remedial actions at NPLsites. 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       FY 2000      FY2001       FY2002      FY2003
Section 106 Civil Actions                                 33                                                                     Agreements

Ensure fairness by making Orphan Share Offers at 100% of   100%          100           100                                       Percent
all eligible settlement negotiations for response work.

Provide finality for small contributors by entering into De     38             18            15                                        Settlements
Minimis settlements and report the number of settlers.

Remedial Administrative Orders                           17                                          .                           Orders

Administrative and judicial actions                                       100                                                     actions

PRPs conduct 70% of the work at new construction starts                                 67.3                         70            Percent



Baseline:        In  FY 98 approximately 70% of new remedial work at NPL sites (excluding Federal facilities) was initiated by private parties.
                                                                  62

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RCRA Corrective Action

In 2003         257 (for a cumulative total of 1,252 or 73%) of high priority RCRA facilities will have human exposures controlled and 172 (for a cumulative total of
                1,054 or 61 %) of high priority RCRA facilities wi li have groundwater releases controlled.

In 2001         EPA exceeded its RCRA corrective action goal for human exposures controlled with an additional 179 facilities, and came close to achieving its goal for
                groundwater releases controlled with an additional 154 facilities.

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                                    FY  1999      FY2000       FY2001       FY 2002      FY 2003
High priority RCRA facilities with human exposures to       162           191            179                         257            facilities
toxins controlled.

High priority RCRA facilities with toxic releases to          188           168            154                         172            facilities
groundwater controlled.



Baseline:        EPA established a baseline of over 1,700 high  priority corrective action facilities in January 1999.


Brownfield Site Assessment Grants

In 2003         EPA will provide additional site assessment funding to 74 new sites, and to 52 existing sites, resulting in a cumulative total of 3,350 properties assessed,
                the generation of 21,300 jobs, and the leveraging of $5.0 billion in cleanup and redevelopment funds since 1995.

In 2001         FY200I third quarter date shows cumulative totals of 2,594 site assessments, generation of 17,307 jobs and leveraging of $3.7 billion in cleanup and
                redevelopment funds.

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                                    FY  1999      FY 2000       FY2001       FY2002      FY 2003
Cumulative leveraging of cleanup and redevelopment                      not available 'S3.7B                       $5.0 B         funds
funds.                                                                                                                           leveraged



                                                                   63

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 Cumulative jobs generated.                                             not available    17,307                       21,300        jobs generated
 Cumulative site assessments.                                            not available   2,594   •                     3,350          assessments
. Cooperative agreements to support Brownfields assessment   80                                                                     agreements
 pilots.

 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.

 Brownfield Community Support
 In 2003          EPA will provide funding for 30 communities to capitalize revolving loan funds for a cumulative total of 182, provide funding for 10 job training pilots
                 for a cumulative total of 66 and 70% of graduates placed in jobs, and support 28 existing Showcase Communities.
 In 2001          46 communities capitalized 23 new and append 2 existing revolving loan funds.  EPA awarded 12 additional showcase community designations,
                 supporting a total of 28 showcase communities. Additionally, EPA awarded 9 new job training pilots.
 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 fay 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                                   FY 1999      FY2000       FY2001      FY2002       FY 2003
 Showcase communities.                                  16            16            28                                         communities
 Communities served by cooperative agreements to           45        .   37            46                                         agreements
 capitalize revolving loan funds.
 Job training pilots.                                      '              16            9                                          pilots
 Cumulative communities served by cooperative agreements •                                                           182           communities
 to capitalize revolving loan funds.
 Cumulative job training pilots.                                                                                     66             pilots
 Cumulative showcase communities.                                                                                28             communities
 Percentage of trainees placed.                                                                                      70             percent

 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.

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Superfund Intermediate Cleanup Indicators

In 2003         EPA will increase the number of Superfund hazardous waste sites with human exposures and migration of contaminated groundwater under control.

Performance Measures                                   FY 1999      FY2000      FY2001       FY2002      FY2003
Superfund hazardous waste sites with human exposures                                ,                              10            sites
controlled.

Superfund hazardous waste sites with groundwater                                                                   10            sites
migration controlled.



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.

Triba I Clea n up Assistance

In 2003         Complete 45 Leaking Underground Storage Tank (LUST) cleanups in Indian Country for a cumulative total of 617 cleanups since 1987.

In 2003         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         30 LUST cleanups were completed in Indian Country in FY 2001.

In 2001         FY 2001 accomplishments in Indian Country include 11 site assessments, support to 78 tribes through 27 cooperative agreements, provision of $3.8M
                for capacity building, and tribal leadership or support in responding to 26% of Superfund sites impacting Indian Country.

Performance Measures                                   FY 1999      FY2000      FY2001       FY2002      FY2003
LUST cleanups in Indian Country.                                                     30                          45            cleanups

Site assessments (PA/SI)  conducted in Indian country.                                    11                          no target      assements

The number of tribes supported by cooperative agreements                      •          78                          no target      agreements
with tribes/intertribal consortia.

Funding provided for building tribal capacity.                                           $3.8M                      no target      funding
                                                                 65

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Percentage of Superfund sites impacting Indian country                                   26                           no target       involvement
where a tribe is involved as either the lead or support
agency.



Baseline:        EPA completed a total of 532 LUST cleanups in Indian Country from 1987 through 2001. The baseline for Superfund activities is currently under
                development.

Homeland Security

In 2003         EPA will complete the remaining 27 critical facility vulnerability assessments, priortize the risks associated with each facility, and begin mitigation.

In 2003         EPA will improve its overall homeland security readiness capability by 20% by performing enhanced training and exercises and providing state-of-the-
                art equipment. Percentage improvement will be determined by an annual readiness survey and inspections.

Performance Measures                             .      FY 1999      FY2000       FY2001     .  FY2002       FY2003
Percentage improvement in homeland  security readiness.                                                               20            percent

Percentage of LEPCs that have incorporated homeland                                                                 no target       percent
security prevention and planning into community
contingency plans.

Percentage of states that have incorporated homeland               .                                                    no target       percent
security planning into state response systems,



Baseline:        Based on FY 2002 performance, baseline is zero for number of critical Agency facilities that have had vulnerability assessments,

Homeland Security

In 2003         EPA will complete the remaining 27 critical facility vulnerability assessments, priortize the risks associated with each facility, and begin mitigation.

In 2003         EPA will improve its overall homeland security readiness capability by 20% by performing enhanced training and exercises and providing state-of-the-
                art equipment. Percentage improvement will be determined by an annual readiness survey and inspections.

Performance Measures                                    FY 1999      FY2000       FY2001       FY2002       FY2003
Number of vulnerability assessments performed.                                                                       27            Assessments



Baseline:        Based on FY 2002 performance, baseline is zero for number of critical Agency facilities that have had vulnerability assessments.

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Research

Scientifically Defensible Decisions for Site Clean

In 2003 '       To ensure cost-effective and technically sound site clean-up, deliver state-of-the-art guidance and methods to EPA and stakeholders for risk
                management of fuel oxygenates; organic and inorganic contamination of sediments, ground water and/or soils; and oil spills.

In 2001         EPA provided technical information to support scientifically defensible and cost-effective decisions for clean-up of complex sites, hard-to-treat wastes,
                mining, oil spills near shorelines, and Brownfields to reduce risk to human health and the environment.

In 2000         The MTBE case studies summary report was delayed to include more than the original four sites. The SITE report was sent to OMB in FY 2000, but the
                time required for approval delayed its arrival in Congress. The dermal exposure route report Was delayed until  12/00 to allow for completing peer
                review.

In 1999         Completed: 1) Statistical Distribution for Selected Exposure Factors; 2) report and software on modeling of bbavailability of cadmium at haz. waste
                sites; 3) issue paper on pesticide degradation in haz. waste sites; 4) report on software and database for pilot project to enhance MIXTOX database.

In 1999         Produced the annual Superfund Innovative Technology and Evaluation (SITE) Program report, and completed  six (6) innovative technology reports.

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."
Performance Measures
Envronnmental 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.
Interim report on 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.
FY 1999
1  report
30-SEP-1999
FY 2000
FY2001
FY 2002
FY 2003
               lS-Jan-2001
                                                                        document
                                                                        report
                                                                        report
                                                         report
                                                                   67

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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 eeo-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    30-Nov-1999

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 detailing 4-6
innovative approaches, their cost savings and future
direction; reports summarizing pilot scale evaluation of in-
situ remedies for solvents.

Report: Permeable reactive barriers for ground water
remediation; Incorporating the results of long-term
performance studies in remedy selection for contaminated
sites.
3i-Dec-2000
30-Sep-2000
report
values
                                                          document
                                                          report
                                                          report
                                                          report
Baseline:        Deliver state-of-the -art guidance and methods to EPA and other stakeholders for risk management of fuel oxygenates; organic and inorganic
                contamination of sediments, ground water and/or soils; and oil spills to ensure cost-effective and technically sound site clean-up. Baseline: There are a'
                number of contaminants and/or media at Superfund, Leaking Underground Storage Tank (LUST) sites that are difficult to clean up. Methyl tert-Butyl
                Ether (MTBE), a fuel oxygenate found increasingly in US ground water/drinking  water, requires clean up to low (ppb) levels but clean-up is expensive
                because of its chemical, physical and biological properties. Polynuclear aromatic hydrocarbons (PAH) are found at wood preserver sites and  gas
                manufacturing plants, contain carcinogenic components and are difficult to cost-effectively clean up due to their high molecular weight. Arsenic (As) in
                ground water requires clean up to low levels due to its impacts on humans and ecological systems. As treatment systems which perform for long periods
                of time are needed. We also need to understand the reasons why ground water As concentrations may naturally reduce over time. Bulk shipment/storage
                of non-petroleum oils (e.g. vegetable oils) can result in spills/leaks that have significant impacts on fresh water and marine environments. Inexpensive
                techniques are needed to clean up these spills without doing  further harm to the environment. Research involving pilot and full scale treatment
                testing/demonstrations is particularly important when  addressing these research needs because such research will lead to near-term options for effective,
                reasonable-cost clean-ups.
                                                                   68

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SULATE FACILITIES TO PREVENT RELEASES

federal, statej tribal, and local partners will ensure that more than 277,000 facilities are managed according to the
eleases to the environment.
its state and tribal partners will ensure that 80% of UST facilities will be in significant operational compliance with leak detection
;nts,  and 85% of UST facilities will be in significant operational compliance with spill, overfill and corrosion protection regulations.

icy now tracks the number of UST facilities in significant operational compliance with requirements, as opposed to the number of UST systems
to meet the requirements. For this reason, data on these two measures is not available and will not be available in the future.

net.  86% of USTs demonstrated compliance with the 1998 requirements to upgrade, close or replace substandard tanks. The original goal
I on equipment changes to UST systems.  However, the 86% percent reflects operational compliance as well as equipment changes.

                              FY 1999       FY2000       FY2001       FY2002       FY2003
pliance with the  1998 deadline                   86%          not available                               compliance


pliance with the  leak detection                                 not available                               compliance


i in significant operational                                                                80             percent
ion requirements.

i in significant operational                                                                85             percent
ill and corrosion protection
worked with stakeholders to develop new measures that will account for significant operational compliance. Data are being collected in FY
a new baseline should be available in FY 2002.
> will be completed on RMP plans to determine completeness and accuracy, and 8 additional states (for a cumulative total of 25) will be
ting accident prevention programs.

its goal, with 85% of facilities submitting RMPs, 5 additional states implementing Accident Prevention Programs, and 438 audits completed to
 RMP completeness and accuracy.


                                          69

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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       FY200I      FY2002       FY2003
Percentage of facilities which have submitted RMPs.                        75%    •      85                                        facilities

RMP audits completed.                                                 266           438                         300           audits

Number of states implementing accident prevention         2              3        '      5                            8             states
programs.

Number of LEPCs implementing the Clean Air Act 112 (r)   not available                                                            LEPCs
chemical RMP- prevention programs



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 2003         600 additional facilities will be in compliance with the Spill Prevention,  Control and Countermeasure (SPCC) provisions of the oil pollution prevention
                regulations, fora cumulative total of 3,495 facilities since 1997.

In 2001         EPA confirmed an additional 593 facilities in compliance with spill prevention, control, and countermeasures (SPCC) provisions, for a cumulative total
                of 2,345 Facilities in compliance since 1997.

In 2000         EPA exceeded its goal, with an additional 678 facilities in compliance with spill prevention, control and eountermeasure (SPCC) provisions of the oil
                pollution regulations, for a cumulative total of 1,752 facilities in compliance since 1997.

In 1999         EPA exceeded its goal by bringing 774 facilities into compliance with SPCC provisions.

Performance Measures                                   FY 1999        FY2000       FY2001      FY2002       FY 2003
Facilities in SPCC compliance.                            774            678           593                         600           facilities



Baseline:        1,752 facilities were in compliance in FY 2000.
                                                                  70

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Oil Spill Response

In 2003         Respond to or-monitor 300 significant oil spills in the inland zone.

In 2001         EPA significantly exceeded its goal by responding to 249 oil spills and monitoring 278 oil spills.

fn 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       FY2003
Oil spills responded to by EPA.                           94            176           249                                       spills

Oil spills monitored by EPA.                             229           192           278                                       spills

Oil spills responded to or monitored by EPA,                          .                                               300           spills



Baseline:        EPA typically responds to 70 oil spills and monitors 130 oil spill cleanups per year.



Ensure WIPP Safety

In 2003         Certify that 8,000 55 gallon drums of radioactive waste (containing approximately 24,000 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       FY200I       FY2002       FY2003
Number of 55-GaIlon Drums of Radioactive Waste                                                                   8,000         Drums
Disposed of According to EPA Standards



Baseline:        The Waste Isolation Pilot Plant (WIPP) near Carlsbad, NM was opened in May 1999 to accept radioactive transuranic waste. By the end of FY 2002,
                approximately 13,000 (cumulative) 55 gallon drums will be safely disposed.  In FY 2003, EPA expects that DOE will ship an additional 8,000 55 gallon
                drums of waste to WIPP so that 2.4% 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.
                                                                  71

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RCRA Facility Standards and Compliance

In 2003         77.2% of the hazardous waste management facilities will have approved controls in place to prevent dangerous releases to air, soil, and groundwater.
                This represents an additional 39 facilities meeting the goal this year.

In 2001          An additional 249 hazardous waste management facilities have permits or other approved controls in place, for a cumulative total of 2,051 or 74% of the
                facility universe. The streamlined permitting standards rule was proposed October 12,2001.

In 2000         EPA exceeded its goal by establishing approved controls for 308 additional RGRA hazardous waste management facilities, for a cumulative total of
                1,802  facilities or 62% of the 2,900 facility baseline.

In 1999         149 RCRA hazardous waste management facilities were determined to have permits or other controls in place.

Performance Measures                                .    FY 1999       FY2000      FY2001       FY 2002       FY2003
RCRA hazardous waste management facilities with permits   149                                    '                               facilities
or other approved controls in place.

Propose final streamlined permitting standards                             0             1                                          rulemaking

Percent RCRA hazardous waste management facilities with                 62%          74%                         77.2          percent
permits or other approved controls in place.

Initiate training program for new permitting standards.                         '                                       1             training



Baseline;        EPA established a baseline of approximately 2,750 facilities in October 2000.

Tribal Prevention Assistance

In 2003          EPA will provide grants to those tribes identified  as having facilities subject to the Emergency Planning and Community Right-to-know Act (EPCRA).

In 2003          EPA will evaluate RCRA Subtitle C management  needs for an additional 36 Federally recognized tribes.

In 2003          EPA will facilitate closing or upgrading existing high-threat open dumps on Indian Lands.

In 2001          Data is currently unavailable for the open dumps cleanup project.

In 2001          EPA developed  a tribal strategy to promote development of tribal chemical emergency preparedness programs.

In 2001          EPA evaluated the needs of 177 tribes in FY 2001.
                                                                   72

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Performance Measures
Provide funding assistance.

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.

Provide support and funding to tribes participating in the
multi-Agency Tribal Open Dump Cleanup Project.
FY 1999
FY 2000
FY2001 FY2002

1
177
not available
not available
not available

FY2003
no target

36
no target
no target
no target
no target

grants
draft strategy
evaluations
assessments
upgrades
sites
funding
Baseline;        EPA is currently working to assess the number of tribes with chemical hazards on tribal lands.

Research

Scientifically Defensible Decisions for Active Man

In 2003         Deliver scientifically-enhanced 3MRA to QSW for their HWIR proposal and provide OSW/Regions with site-specific version of this exposure and risk
                assessment modeling system to implement HWIR and other applications for more cost-effective waste site management and protection of health and
                environment.

In 2001         EPA provided 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 incinerators.

In 1999         Completed a report on the software modeling system for automating the Hazardous Waste Identification Rule (HWFR) assessment and completed a
                Beta-Il version of this system.
Performance Measures
HWIR Human and Ecosystems Site (Generic) Exposure-
Risk Assessment Screening Model, peer reviewed and
applied to HWIR listed chemical exit levels

Beta version for comprehensive modeling system.
FY 1999      FY2000
30-SEP-1999
              FY2001
FY 2002
FY2003
                                                                       system
                                                                  73

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Develop provisional toxicity values for 10-20 waste                       30-Sep-2000                                              values
constituents that do not have values describing their dose-
response toxieological properties.

Provide journal article on factors that control Hg speciation                 1                                                         article
in incinerators

Update the HWIR99 modeling methodology for delisting                                  1                                           update
hazardous wastes, in response to public comments on 1999
Federal Register Notice

Deliver science based enhancements to the 3MRA                                                                     1              model
modeling system to support OSW's proposed HWIR and for
conducting site-specific risk assessments.



Baseline:        As a result of their regulatory reform efforts, OSW introduced in November 1999, a new open-architecture, multimedia, multipathway, and multi-
                receptor exposure and risk assessment (3MRA) methodology designed to support their Hazardous Waste Identification Rule (HWIR). Independent
                software testing, peer review on the system architecture and its internal science modules, and public comments on the Federal Register announcement
                are being addressed through refinements to. the proposed modeling system. We also are improving some of the existing physical, chemical, and
                biological processes algorithms in the current system.  The enhanced version will be used to support OSWs proposed HWIR (Proposal and Final Rule
                are expected about FY03 and FY05, respectively) which will update existing waste disposal regulations to eliminate possible over-regulation; 3MRA
                will serve as the scientific basis for establishing safe exit levels for certain wastes. The site-specific version will expand the screening level assessment
                capabilities to provide for site-specific exposure and risk assessments that will be used in HWIR implementation and other RCRA applications.
                                                                   74

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GOAL 06: 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.

       OBJECTIVE 01: 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.

       U.S. - Mexico Border Water/Wastwater Infrastructur

       In 2003         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 200 i         Provided protection to over 576,405 residents in the Mexico border area from health risks, beach pollution and damaged ecosystems from nonexistent
                      and failing water and wastewater treatment infrastructure by providing improved water and wastewater service.

       In 2000         10 Additional water/wastewater projects (cumulative total of 36) along the Mexican border have been certified for design-construction.

       In 1999         9 additional water/wastewater projects along the U.S.-Mexico Border have been certified for design-construction.

       Performance Measures                                 FY 1999       FY2000    , FY2001       FY2002       FY2003
       Number of additional people in Mexico border area                                   576,405                    900,000       People
       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   9             10                            ,                      Projects
       Border



       Baseline:        There are approximately 11 million residents in the border area.

       Great Lakes: Binational Toxics Strategy

       In 2003         Reduce Great Lakes toxic pollutants.

       In 2001         Reduced Great Lakes toxic pollutants by remediating over 400,000 cubic yards of contaminated sediment.



                                                                    75

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In 2000         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. Imnplemented 4 Great Lakes projects of Level I substances in support  of toxics reductions.

In 1999         Cataloged and publicized 3 actions toward reduction challenges under the BNS. Initiated 12 Great Lakes Projects in support of toxics reduction.

In 1999         Seven assessments and characterizations (2 new and 5 follow-up) were conducted in Great Lakes Areas of Concern. Two of the five sediment cleanup
                deinostrations started in 1996 have been completed.
Performance Measures                                    FY 1999       FY200Q
Level I substances for which 1 -2 toxic reduction activities                   4
are being implemented.

New assessments and characterizations to support                          1
State/community clean-up of contaminated sediments at
Great Lakes AOCs.
Follow-up assessments and characterizations to support                     4
State/community clean-up of contaminated sediments at
Great Lakes AOCs.

Cubic yards of contaminated sediment remediated in the
Great Lakes.

Great Lakes sediment cleanup demonstrations completed                    2

Catalog and publicize actions (partnerships or virtual          3
elimination demonstration projects) toward reduction
challenges under BNS.

Great Lakes Projects initiated in support of toxics reduction   12

Assessments and characterizations at Great Lakes Areas of    7
Concern

Catalogued and publicized actions (partnerships or virtual                   8
elimination demonstration projects) initiated toward
reduction challenges under BNS.

Completion and documentation of BNS analytical  process                   100
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     2
cleanup demonstrations completed.
FY2001
FY 2002      FY 2003
401,500
              100,000
Substances


Assessment



Assessments



Cubic yards


Demonstration

Actions



Projects

Assessments


Actions



% Completion
                                           Cleanup
                                           demos
                                                                  76

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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 sediment remediation.  GLNPO will continue to quantify contaminated sediment remediation annually.
Great Lakes: Ecosystem Assessment

In 2003         Great Lakes ecosystem components will improve, including progress on fish contaminants, beach toxics, air toxics, and trophic status.

In 2001         Great Lakes ecosystem components improved, including progress on fish contaminants, beach toxics, air toxics, and trophic status.

In 2000         6,000 of acres of acquatic, wetland, riverine, and terrestrial Great Lakes habitats were positively impacted.

In 1999         Funded 8 projects intended to ecologically enhance terrestrial biodiversity and have enhanced 95,000 acres.

In 1999         Protocols developed for swimmability index, benthic community health, sediment assessment, sediment remediation, and predator fish.

In 1999         Steps identified in ballast water management that will prevent the introduction of new non-indigenous species.
Performance Measures
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.

Long-term-concentration trends of toxics (PCBs) in Great
Lakes top predator fish.

Long-term concentration trends of toxic chemicals in the
air.

Total phosphorus concentrations (long-term) in the Lake
Erie Central Basin.

Long-term dissolved oxygen depletion trend in Lake Erie.
FY 1999
FY 2000
10
              6,000


              2
FY200I
FY 2002
FY2003
                             Uncertain


                             Declining


                             Improving
                                                                        Indices


5%
7%
10
3.11
Acres
Pilot
Annual
decrease
Annual
decrease
Ug/I
Mg/1
                                                                   77

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Develop protocols for 5 of a proposed 12 GLNPO            5                                                                        Protocols
Monitoring Indexes, summarizing the prior year's data on
select fish contaminants, atmospheric dep., limnology,
biology, & sediments.

Projects and acreage ecologically enhanced in terrestrial      8/95,000                                                                 Projects/Acres
biodiversity investment areas

Model predictions for Lake Michigan for toxics reduction                    5           .                                              Predictions
scenarios.

Set of quantifiable targets for ecological enhancement in      0                                                                        Set
aquatic biodiversity investment areas.

Identify steps in ballast water management that will prevent   1                                                                        Set
the introduction on new non-indigenous species.



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 picograms 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.


Mexico Border Outreach

In 2003          Develop air quality assessments and improvement programs to attain air quality standards in border communities.

In 2003          Expand hazardous waste management and pollution prevention practices in the maquiladoras.

Performance Measures                                    FY 1999       FY2000       FY2001       FY2002       FY 2003
U.S. cities along the Mexico Border region carrying out air                                                               1             cities
emissions inventories.
Number of maquiladoras that have implemented pollution                                                               314           maquiladoras
prevention controls after a site assessment visit, workshop,
or training session.



Baseline:         Many border area residents are exposed to health-threatening levels of air pollutants including ozone, particulate matter, carbon monoxide and sulfur
                 dioxide. The need to evaluate levels of targeted air pollutants is particularly urgent in heavily populated urban areas where air quality problems are


                                                                    78

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               compounded by emissions from increasing numbers of vehicles - many of which are older .and poorly maintained; extensive industrial activity; and
               numerous air sources (e.g., unpaved roads, waste disposal fires). To date seven out of the 14 sister-city pairs have air quality networks established and
               operating.

OBJECTIVE 02: 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.

Reduce Greenhouse Gas Emissions

In 2003         Greenhouse gas emissions will be reduced from projected levels by approximately 73.5 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         The data for this annual performance goal will not be finalized until mid-2002.

In 2000'        Greenhouse gas emissions were reduced from projected levels by more than 59.3 MMTCE per year through EPA partnerships with businesses, schools,
               State and local governments, and other organizations thereby offsetting growth in GHG emissions above  1990 level by about 20%.

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

Greenhouse Gas Reductions from EPA's Buildings Sector
Programs (ENERGY STAR)

Greenhouse Gas Reductions from EPA's Industrial
Efficiency/Waste Management Programs

Greenhouse Gas Reductions from EPA's  Industrial
Methane Outreach Programs

Greenhouse Gas Reductions from EPA's  Industrial
HFC/PFC Programs

Greenhouse Gas Reductions from EPA's Transportation
Programs

Greenhouse Gas Reductions from EPA's State and Local
Programs
FY 1999
46
12.7
4.5
8.5
15.0
1.1
1.6
FY 2000
59.3
15.2
5.5
13.8
21.4
1,7
1.7
FY200I FY2002
On track
On track
Not on track
On track
On track
Not on track
Not on track
FY 2003
73.5
19.5
6.5
17.5
25.6
2.4
2,0
MMTCE
MMTCE
MMTCE
MMTCE
MMTCE
MMTCE
MMTCE
                                                              79

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Annual OHO Inventory (FCCC)                           I                                                                        Inventory



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 baseline is currently under review as part of the interagency evaluation process
                for preparing the Climate Action Report 2001.


Reduce Energy Consumption

In 2003         Reduce energy consumption from projected levels by more than 95 billion kilowatt hours, contributing to over $ 11 billion in energy savings to
                consumers and businesses.

In 2001         The data for this annual performance goal will not be finalized until mid-2002.

In 2000         Reduced energy consumption from projected levels by about 74 billion kilowatt hours, resulting in over $8 billion in energy savings to consumers and
                businesses that participate in EPA's climate change programs.

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       FY2003
Annual Energy Savings - All EPA Programs                 50            74            On track                     95             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 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 baseline is currently under review as part of the interagency evaluation process
                for preparing the Climate Action Report 2001.


Clean Automotive Technology

In 2003         Transfer hybrid powertrain components, originally developed for passenger car applications, to meet size, performance, durability, and towing
                requiremnts of Sport Utility Vehicle and urban delivery vehicle applications with  an average fuel economy improvement of 20% over the baseline,



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Performance Measures                                   FY 1999      FY2000      FY2001      FY 2002       FY2003
Fuel Economy of EPA-Developed SUV Hybrid Vehicle                                      .                         24.2           MPG
over EPA Driving Cycles Tested



Baseline;        The average fuel economy of all SUVs sold in the US in 2001  is 20.2 mpg. Values for 2001,2002, and 2003 represent 10%,  15%, and 20%
                improvements over this baseline, respectively. The long-term  target is to demonstrate a practical and affordable powertrain that is 30% more efficient
                by 2005, and 100% more efficient by 2010.

Research

Global Change Research - Human Health and Ecosyste

In 2003          Assess the potential effects of climate change on weather-related morbidity.

In 2003          Build the capacity to assess global change impacts on air quality by downscaling meteorological data to regional scales and quantifying the effects of
                advanced fuel/vehicle combinations.

In 2001          Assessed the consequences of global change (particularly climate change and climate variability) on human health and ecosystems.

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 2000          Work to assess the impacts of global change on ecosystem services was delayed until FY02.

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.

In 1999          Assessments linking regional hydrology to climate change were delayed until the 2nd quarter of FY 2001.

In 1999    •      The Mid-Atlantic and  Great Lakes Regional Assessments were completed. These will contribute to the National Assessment  of "Potential
                Consequences of Climate Change and Variability to the United States," required under the Global Change Research Act of 1990.

Performance Measures                                   FY 1999      FY 2000      FY 200-1       FY2002       FY2003
Assess potential effects of global change on ecosystem                     30-Sep-2002                                              indicators
services.

Complete a Health Sector Assessment of the potential                     1                                                         assessment
consequences of climate change and variability for public
health, for the USGCRP National Assessment process.
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Provide preliminary results from a case study which will
determine how climate change & variability affect the
formation of trop. ozone in a city & consider the viability of
certain adaptation options

Develop prototype ecological and health data and
information system to integrate with the Global Climate
Data and Information System (GCDIS).

Report on problem formulation for ecosystem services
sector assessment.

Report on the development and use of climate change
indicators.

Conduct preliminary assessment of regional scale
consequences of climate change at three geographic
locations (Mid-Atlantic, Gulf Coast, and upper Great
Lakes).

Report on the potential effects of climate change on urban
air quality.

Preliminary report assessing potential health effects of
global change by linking human health and ecological risk.

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.

Produce a final, comprehensive assessment report which
quantifies the potential effects of climate change on
weather-related morbidity.

In support of the air quality assessments, produce interim
assessment of how advancements in hydrogen/fuel cell and
gasoline hybrid vehicles affect emissions of ozone
precursors and PM.

Produce a preliminary analysis of meterological data and air
quality using statistical  methods.

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.
             N/A
results
                                                                      . info, system
report
                                                                       assessment




                                                                       report


                                                                       report


                                                                       assessment




                                                                       report



                                                                       assessment




                                                                       analysis


                                                                       reports
                                                                    82

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Baseline:  .      In April 2000, the Health Sector Assessment Team participating in the first USGCRP National Assessment of the "Potential Consequences of Climate
                Variability and Change" published its Executive Summary, The entire assessment was published in May 2001 as a Special Issue of Environmental
                Health Perspectives. The Health Sector Assessment report identified key remaining research needs, which included weather-related morbidity effects.
                By the end of FY 2003, assessments will be completed of (!)• heat-related morbidity in children; (2) the relationship between weather variability and
                violent crime; (3) the effects of inclement weather on accidents and injuries; and (4) the effects of extreme heat on emergency room visits and hospital
                admissions.
  Air pollution continues to be a widespread public health and environmental problem in the United States. Previous studies suggest that global change (climate change
                and variability, UV-radiation, land use change) could have significant impacts on ambient air quality. Global climate change will likely result in
                changes in regional and local weather. While few studies have explicitly investigated the effects of global change on air quality, the available evidence
                (e.g., weather-ozone studies, basic atmospheric chemistry, sensitivity of emissions to weather and land use, etc.) raises concerns that global change
                could adversely affect air quality. Two pollutants likely to be affected by global change are ozone and particulate matter and they are also of significant
                interest to the Agency. By the end of FY 2003, two important components of an integrated air quality assessment will be completed: (1) downscaling of
                global meteorological data to geographic scales appropriate for air quality assessments; and (2) quantification of the air implications of advanced
                fuel/vehicle combinations likely to be used to adapt to climate change.

OBJECTIVE 03: 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) overexposure, particularly among
susceptible subpopulations such as children.

Restrict Domestic Consumption of Class II  HCFCs

In 2003          Restrict domestic consumption of class II HCFCs below 9,960 ODP-weighted metric tonnes (OOP MTs) and restrict domestic exempted production and
                import of newly produced class I CFCs and halons below 10,000 OOP MTs.

In 2001          The 2001 results will be available after March 15,2002.

In 2000          Domestic consumption of class II HCFCs was restricted below 15,240 ODP-weighted metric tonnes (OOP MTs) and domestic exempted production and
                import of newly produced class I CFCs and halons was restricted below 60,000 OOP MTs.

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      FY2003
Domestic Consumption of Class II HCFCs                <208,400       13,180        On track                   <9,960        OOP MTs
                                                     MTs
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Domestic Exempted Production and Import of Newly        < 130,000     462           On track                    < 10,000      OOP MTs
Produced Class I CFC s and Hafons                       MTs


Baseline*       The base of comparison for assessing progress on the 2003 annual performance goal is the domestic consumption cap of class II HCFCs as set by the
               Parties to the Montreal Protocol. Each Ozone Depleting Substance (ODS) is weighted based on the damage it does to the stratospheric ozone - this is its
               ozone-depletion potential (OOP). Beginning on January 1, 1996, the cap was set at the sum of 2.8 percent of the domestic OOP-weighted consumption
               of CFCs in 1989 plus the OOP-weighted level of HCFCs in 1989. Consumption equals production plus import minus export.



Montreal Protocol Fund

In 2003         Provide assistance to at least 60 developing countries to facilitate emissions reductions and toward achieving the requirements of the Montreal Protocol.

In 2001         The US provided assistance to 76 developing countries to facilitate emissions reductions toward achieving the requirements of the Montreal Protocol.

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                                  FY 1999      FY 2000       FY2001      FY2002      FY 2003
Assistance to Countries Working under Montreal Protocol    50            50            76                         60           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.


OBJECTIVE 04: 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.

Eva I. Domest. Suitab. of Internal Consens. Testing

In 2003         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 2001          The shortfall in the number of chemicals in this relatively young, voluntary program is due to a lack of committments from Industry, as well as debate
                within member countries on which chemicals should be brought forward.

In 2000          A change in the Organization for Economic Cooperation and Development (OECD) program and a meeting delay caused the Screening Information
                Data Set (S IDS) 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       FY 2000       FY2001       FY 2002      FY 2003
Complete the review of testing needs for chemicals          36            2-8            40                          7-5            Test Reviews
processed through the OECD- sponsored SIDS program

Complete OECD harmonization                           0             5             4                                         Test Guidelin

Prepare harmonization documents                                                                                 5            Dft/Fnl
                                                                                                                             Guidlns


Baseline:        (1)Complete testing and  data on 2-5 chemicals processed through the OECD sponsored SIDS program in 1998. (2) Guideline harmonization baseline is
                82 test guidelines (health, "ecosystem, exposure, physical and chemicals properties) and 32 in draft.  (3)!n addition to Finalized guidelines: (a) Drafts of
                New Guidelines and Guidance documents sent out for member country review, (b) Drafts of revised Existing Guidelines and Guidance documents that
                have been sent out for member country review are included.

POPs Negotiation

In-2-003          Reduce environmental exposure to US and selected Countries of concern from Persistent Organic Pollutants (POPs) through the implementation of the
                Stockholm Convention on POPs.

In 2001          Three priority activities were initiated in developing countries to implement the newly concluded global convention on Persistent Organic Pollutants.

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 LJSG 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      FY 2003
Agreed USG policies on selection criteria  for Persistent     yes                                                                   negotiations
Organic Pollutants

Production of a final agreed convention text                               yes                                                     report
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Agreement on selection criteria and methodology                          yes                                                      report

Number of POPs implementation activities supported.                                     3       .                                   activities

Develop baseline information on atmospheric transport of                                                             1             station
POP chemicals to sensitive US ecosystems.

Conduct source inventories in selected Asia-Pacific                                                                   4             inventories
countries

50% of former-owned obsolete POP pesticide stockpiles are                                                           5             training
removed as a result of training, in priority countries and or
regions in Central America.

 Assist countries in the Carribean to address targeted PCB                                                             1             Mgmt. Plan
sources.



Baseline:        With the signing of the global POPs convention in May 2001 EPA will work on domestic implementing legislation (e.g., a F1FRA 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 2003         Art additional two countries make national commitments to phase out the use of lead in gasoline.

In 2001         Target Met. Philippines and Vietnam have committed to lead phase-out. Also, EPA was an active player in achieving the "Declaration of Dakar," which
                is a statement by representatives of 25 Sub-Saharan African countries presenting a timeline for phasing lead additives out of gasoline.

Performance Measures                                   FY 1999      FY2000       FY2001       FY2002       FY2003
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.
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OBJECTIVE 05: 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.

Enhance Institutional Capabilities

In 2003         Enhance environmental management and institutional capabilities in priority countries.

In 2001         Target Met. EPA conducted environmental institutional  building and enhanced the abilities of the following countries to protect their environments and
               those of the gloabal common: El Salvador, Nicaragua, Honduras, Mexico, China, Thailand, Eygpt, Indonesia, Vietnam, & Philippines,

In 2000         Delivered 12 international training 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.
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Performance Measures
Number of training modules delivered

Number of tech assistance or tech dissemination projects
carried-out

Number of cooperative policy developement projects
implemented
Number of info products disseminated to foreign customers

Number of capacity buiiding activities scheduled for
initiation in FY 2000 and beyond

Number of countries or localities (3) that have adopted new
or strengthened environmental 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 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.

Increase the capacity of programs in Africa or Latin
America to address safe drinking water quality issues.
FY 1999
16
2500

2
FY 2000
12

6


5


3100
FY2001
FY 2002      FY 2003
                             4


                             2


                             3
                                           modules

                                           projects


                                           projects


                                           products

                                           report


                                           countries


                                           organizations



                                           organizations



                                           organizations


                                           industry sector


                                           cities


                                           countries


                                           countries
                                                                        countries
                                                                   88

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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.

World Trade Organization - Regulatory System

In 2003         All trade agreements negotiated after 2001 contain environmental provisions.

Performance Measures                                   FY 1999       FY2000       FY2001      FY 2002       FY2003
Trade agreements and world trade organization provisions                                                              1              Agreements
contain environmental text



Baseline;        Currently, the World Trade Organization has no formal policy for involving the public in its decision making and dispute resolution processes.
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GOAL 07: 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.

       OBJECTIVE 01: 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.
       Process and Disseminate TRI Information - OEI
       In 2003        The public will have better information on toxic releases and wastes being managed in their communities.  EPA will also work with the owners and
                     operators of facilities to reduce the record-keeping and reporting burdens associated with submitting their TRI forms to EPA by 14%.
       In 2001        120,000 chemical submissions and revisions processed; published annual summary of TR1S database in April 2001; and TRI Public Data Release
                     published in April 2001.
       In 2000        Processed all submitted facility chemical release reports, published annual summary of TRI data, provided improved information to the public about
                     TRI chemicals, and maximized public access to TRI information.
       Performance Measures
       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
       Increase magnetic media use for TRI reporting
       The number of forms containing Toxic Release Inventory
       data being reported electronically on computer diskettes
       will increase from 85% to 90%.
                                   FY 1999
FY 2000
Published
119,000
On Target
FY2001
Published
120,000
Published
FY 2002
FY 2003
                                                                                     90
                         Published
                         Forms
                         Published
                         Error Rate
                         Magnetic
                         Media
                         Percent
       Baseline:
In FY 2001, TRI electronic reporting will be 70%.

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Enhanced Public Access

In 2003         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         EPA improved public assess to compliance but in areas covered by the performance measures EPA did not meet targets.

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
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

By the end of FY 2001, all ten EPA Regions will have an
enforcement and compliance web-site

Make 90% of enforcement and compliance policies and
guidances issued this FY available on the Internet within 30
days of issuance

By April 2001, make summaries of all significant cases
available on the Internet
                                       FY 1999
 FY2000
.2


 34
                                                     94
FY2001
                                                                   9


                                                                   86



                                                                   50
FY 2002
FY 2003
                                           90
                                          percent


                                          states



                                          percent


                                          Websites


                                          Percent



                                          Percent
Baseline;        OECA enhances public access to compliance and enforcement documents through our efforts to make available through the internet newly issued
                enforcement and compliance documents.
Information Exchange Network

In 2003
Decision makers have access to the environmental data that EPA collects and manages to make sound environmental decisions while minimizing the
reporting burden on data providers.
Performance Measures
                                       FY 1999
 FY 2000
FY2001
FY 2002
FY 2003
                                                                 911

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The number of states using the Central Data Exchange will
increase to 45 as the means by which they submit data.

Implement four data standards in 13 major systems and
develop four additional standards in 2003.
                                                                                          45
                                                     States
                                                                                                       Data Standards
Baseline;
The FY 2001 baseline for this program is zero as it is a new program.
OBJECTIVE 02: 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.                                             .

Index Watershed Indicators

In 1999         Index of Watershed Indicators has been updated.  EPA released two new versions of IWI which include updates of six indicators and three new
               measures. To enhance the utility of the IWI, EPA also developed an IWI data index, acatalog of maps (Watershed Atlas) and new combinations of data
               layers.
Performance Measures                                 FY 1999
Updated IWI system, adding data layers and data inputs.      I
                                                  FY 2000
             FY 2001
             FY 2002
             FY 2003
                                                                                                       System
Baseline:

Improved Access to Information on Pesticides

In 1999  ...
The Agency focused on educating workers and health care providers and continued development of the pesticide environmental stewardship program.
EPA established the Pesticide Safety Website and distributed the "Pesticides and Food11 brochure to grocery stores nationwide.
Performance Measures
Annual consumer brochure on the health effects of
pesticides
                                     FY 1999
                                     1
FY 2000
FY2001
FY2002
FY2003
                                                     Brochure
Baseline:

Improve EPA's Internet Site
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In 1999         EPA improved the quality, effectiveness and efficiency of EPA's Internet site by increassing 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                                   FY 1999      FY.2000      FY2001      FY 2002       FY 2003
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:

Environmental Justice

In 2003         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         While EPA did meet the measuresaboutt he public meetings and responding to requests during NEJAC meetings, EPA did not meet the other targets.

In 2000         As a result of public meetings held, no new "hot spots" were identified.

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 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       FY 2003
Award grants to low income and minority communities for   • 100                                                                    Grants
addressing environmental problems.

NEJAC Meetings                                     . 16                                                                     Meetings

Hold 25 EPA-sponsored public meetings held where                       31            25                                         meetings
disproportionately impacted and disadvantaged
communities participate

Respond within 60 days to 75% of requests made to each                   75            75                                         percent
Region and National Program Manager to address
complaints heard during public comment period at NEJAC
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Conduct 18 National Environmental Justice Advisory                       18             13                                         meetings
Commitee (NEJAC) meetings and focused roundtables in
local communities where problems have been identified.

Hold one NEJAC public meeting annually where one                                                                 1              Meeting
environmental policy which impacts disadvantaged
communities is discussed and the communities actively
participate.

Continue to engage the agencies in national issues of                                                                 I              Agenda
environmental concerns through the collaborative efforts of
the 1WG through the publication "Action Agenda for
Environmental Justice".

Award grants to organizations which address environmental                                                            90            grants
problems in communities disproportionately impacted by
environmental hazards.



Baseline:        The Agency works to address issues affecting disproportionately exposed and under-represented populations from adverse health or environmental
                effects. EPA  identifies problem areas 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; concern from communities about new or renewals of permits under RCRA, CWA,CAA, etc.; and complaints filed under Title VI
                of the Civil Rights Act. EPA also works to address these issues through the Federal  Interagency Working Group on Environmental Justice and by
                awarding grants to communities for addressing environmental problems.

Data Quality

In 2003         The public will have access to a wide range of Federal, state, and  local information about local environmental conditions and features in an area of their
                choice.

Performance Measures                                   FY1999      FY2000       FY2001       FY2002       FY2003
Window-to-My  Environment is fully operational and                                                                 Fully          Operational
serving citizens across the country with Federal, state, and
local environmental information specific to an area of their
choice.

Percent compliance with 13 criteria used by OMB to assess                                                            75            Percent
Agency security programs reported annually to OMB under
the Government Information Security Regulatory Act.
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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.
Research

Environmental Science Information

In 2003         Deliver assessments of effects of exposure to chemicals on human health and the environment to EPA, other governmental organizations, industry,
                consultants, academics, and nongovernmental organizations to promote scientifically sound, consistent risk assessments to enhance protection of human
                health

In 2001         EPA collected, managed, and presented 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         Eight (8) pilot projects were completed in FY 1999 under the EMPACT program. These projects implemented timely and high quality environmental
                monitoring technologies in EMPACT cities.

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.
Performance Measures
Add or update to IRIS 15 summaries of the potential
adverse health effects of specific chemical substances.

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.

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.
FY 1999      FY 2000
2 Summaries'
FY2001
FY 2002
FY 2003
                                                                      assessments
                                                                      Grants
                                                                      assessments
                                                                  95

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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.
Develop Agency consensus for human health assessments
(new/updated) for 8-10 environmental substances of high
priority to EPA, and make these accessible on the EPA
IRIS Internet site.
                                                                                                             8-10
                                                                                                                          list
              assessments
Baseline:       The Integrated Risk Information System (IRIS) is an electronic data base containing information on human health effects that may result from exposure
               to various chemicals in the environment for use in risk assessments, decision-making, and regulatory activities. Through the IRIS Program, ORD
               administers an Agency-wide process of chemical nomination, assessment, consensus building, and peer review through which assessments on IRIS are
               produced and updated. As of December 2000 , IRIS contained entries for 541 compounds. The IRIS program is continuously producing new
               assessments and updating existing IRIS assessments as new information becomes available. The information in IRIS is intended for those without
               extensive training in toxicology, but with some knowledge of health sciences.  The individual chemical files in IRIS contain descriptive and quantitative
               information in the following categories: oral reference doses and inhalation reference concentrations (RfDs and RfCs, respectively) for chronic
               noncarcinogenic health effects; hazard identification, oral slope factors, and oral and inhalation unit risks for carcinogenic effects.

OBJECTIVE 03: IMPROVE AGENCY INFORMATION INFRASTRUCTURE AND SECURITY

Through 2006, EPA will continue to improve the reliability, capability, and security of EPA's information infrastructure.

Information Security

In 2003         OMB reports that all EPA information systems meet/exceed established standards  for security.

                                                                   FY2000      FY200I       FY2002
Performance Measures                                  FY 1999
Percent compliance with 13 criteria used by OMB to assess
Agency security programs reported annually to OMB under
the Government Information Security Regulatory Act.

Percent of intrusion detection monitoring sensors installed
and operational.
FY 2003
75
                                                                                                            75
                                                                                                                          Percent
              Percent
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.
                                                                96

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GOAL 08: SOUND SCIENCE, IMPROVED UNDERSTANDING OF ENV. RISK AND GREATER INNOVATION TO ADDRESS ENV.
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.


       OBJECTIVE 01: CONDUCT RESEARCH FOR ECOSYSTEM ASSESSMENT AND RESTORATION.

       Provide the scientific understanding to measure, model, maintain, and/or restore, at multiple spatial scales, the present and future integrity of
       highly valued ecosystems.

       Research

     ' Cstuarine Ecosystem Conditions

       In 2003        Provide the public with a reliable and statistically valid baseline for the condition of the Nation's estuaries against which to measure the success of
                      ecosystem protection and risk management practices,

       In 2001         Baseline conditions in the ecological condition of the Nation's estuaries have been established from which changes and ultimately trends can be
                      evaluated at regional scales.

       In 2000        EPA developed monitoring designs for National coastal monitoring 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 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.

       Performance Measures                                FY 1999      F.Y2000      FY2001      FY 2002       FY 2003
       A final report on the extent and magnitude offish tissue                   I                                                    final report
       contamination in small, wadeable streams in the Mid-
       Atlantic Region as means of identifying high risk areas.

       Draft design for a National coastal monitoring program  to                  I                                                    draft design
       assess the biological condition of estuaries
                                                                    98

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Final report on the relationship between macroinvertebrate                   t                                                         report
& periphyton assemblages & chemical & physical stressors
to verify the applicability of these biological indicators in
the Mid-Atlantic.

Refined coastal health indicators developed and applied in                   28-Feb-2001                                              indicators
salt marsh estuaries and near coastal water of the Gulf and
South Atlantic.

Develop a final work plan for western stream condition                      30-Sep-2000
monitoring.

Report describing the condition of the Nation's Estuaries.                             .     1                                          report

Report on the condition of Nation's estuaries based on a                                                                I             report
statistically valid sampling design so that date is
comparable across the Nation.



Baseline;        The coastal monitoring strategy responds to the needs of EPA and the coastal states and tribes for information on the health of the coastal environment
                that will inform decisions to protect these vital coastal resources. For the past decade, ORDs Environmental Monitoring and Assessment Program
                (EMAP) has been working with federal, state, and academic scientists to develop the most cost-effective methods for measuring the physical, chemical,
                biological, and ecological conditions of coastal waters, bays, estuaries, beaches, and coastal wetlands. The data from this decade of EMAP research and
                field surveys in select areas of the country were combined with select data from EPA (ORD and OW), NOAA, Department of Interior, and Department
                of Agriculture to form an assessment of estuarine condition in 2001.    Because of the needto determine current environmental health baselines and
                quantitatively measure improvement for GPRA,  EPA developed an initiative that would implement the proven science developed by EMAP for the
                ecosystems found throughout the US coastal waters.  Starting in 2000, survey information has been collected on the condition of estuarine resources,
                and the kinds of problems associated with them,  in each conterminous coastal state and in Puerto Rico. In 2003, these data will be compiled for the first
                comprehensive National Coastal Assessment of estuarine condition in the contiguous U.S.  This report also will compare the condition of estuaries in
                the period 1990-1997 to the period 2000-2001.  For the first time, this will provide the public with a reliable picture of the current and changing
                condition of the Nations estuaries and coastal waters  with known confidence, and using consistent measurements.

Integrated-Ecosystem Modeling

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.

In 2000         Publication of a conceptual model for developing watershed assessment techniques has been delayed until 12/31/02.

Performance Measures                                    FY  1999       FY2000       FY2001       FY2002       FY2003
                                                                   99

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Peer-reviewed draft TMDL Implementation                              1                                                     protocol
Protocol/Prototype approach for estimating loadings of
sediments to be used by OW, Regions, Tribal Governments,
and States in implementation of CWA S.303,
Release of multimedia wildlife exposure assessment model                 31-Dec-2002                                           model
which consists of a computer friendly system to assess and
integrate exposures of wildlife to env. contaminants in
soil,water,food,and air
Develop expanded guidance for performing an ecological                  30-Sep-2001                                           guidance
risk assessment; conduct a series of coHoquia and a
workshop on ecological assessment issues

Final report on relationships between wetland extent and                   1                                                     report
land-use patterns with stream water quality and biotic
communities in watersheds of the Lake Superior basin.


Baseline:        In response to the Clean 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.

OBJECTIVE 02: 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.

Research

Human Health Risk Assessment Research

In 2003         Develop, summarize, integrate, and demonstrate an initial set of tools (methods, measurements, models) so EPA can assess aggregate exposures and
               risks from environmental contaminants in multiple media and determine how to best minimize/eliminate human and environmental harm from these
               contaminants.
                                                              10

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In 2001         EPA developed a draft research strategy on human health risk assessment. Although publication has been delayed until FY 2002, the fundamentals of
                this strategy are being implemented into an analysis of data from the National Human Exposure Assessment Survey (NHEXAS).

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 released in FY 2001.
Performance Measures
Assess pesticide exposures to children in Washington,
Minnesota, and Arizona.

Report on the use of mechanistic data in developmental
toxicity risk assesssment.

Develop Exposure Factors Handbook for children

Publish peer reviewed research strategy on human health
risk assessment.

NHEXAS:  Begin implementation of Strategic Data
Analysis Plan.

Provide access to human exposure data via the world wide
web to states, Regions, Program Offices, exposure
modelers, and other stakeholders for use in aggregate and
cumulative risk assessments.

Test and evaluate a framework for modeling aggregate
exposures from source through human exposure to human
dose.

Publish data and results from the National Human Exposure
Analysis Survey (NHEXAS) that will help characterize
exposures to key pollutants and summarize human activities
that impact exposure.

Analyze NHEXAS data for use in updating the Exposure
Factors Handbook.
FY 1999
FY 2000
1
FY2001
FY 2002
FY 2003
                            0


                            1
                                          assessment

                                          report

                                          Handbook
                                          resrch strategy

                                          strategic plan

                                          data base



                                          model


                                          report



                                          analysis
Baseline:        Currently, risk assessments often focuses on a small component of the total exposure and risk that people face.  Aggregate exposure and risk expands
                that consideration to include all the pathways and routes by which people come into contact with pollutants: it is a first step in understanding the
                cumulative total of peoples exposures and risks. A variety of tools (measuremnt and analysis methods, measurement studies and data, and human
                exposure/risk models) are currently under development to allow estimation of aggregate exposures and risks. In FY03, research will provide:  improved
                information on sources of exposure; analysis of actual aggregate exposures of people in the U.S. as observed in probabilistic exposure measurement
                studies; development and demonstration of models for describing the many ways pollutants move from sources to exposures to human dose; and the
                                                                  101

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               gathering together and publication of information and techniques needed to assess aggregate exposures and risk for use by the scientific community, risk
               assessors, and the public.  Providing tools to assess aggregate exposure and risk is an initial step in understanding cumulative exposures and risks, and
               helping us move to more outcome-oriented measures of Agency actions to protect human health.

OBJECTIVE 03; ENHANCE CAPABILITIES TO RESPOND TO FUTURE ENVIRONMENTAL DEVELOPMENTS.

Enhance EPA's capabilities to anticipate, understand, and respond to future environmental developments; conduct research in areas that
combine human health and ecological considerations; and enhance the Agency's capacity to evaluate the economic costs and benefits and
other social impacts of environmental policies.

Research

Mercury Research

In 2003         Support development of regulations on mercury emissions from coat-fired utility boilers by producing data on measurement methods and control
               technology performance, cost, and residues so that EPA can effectively reduce human health and environmental risk from mercury.

In 2001         EPA developed a new peer-reviewed and consensus IRIS entry for methylmercury, including a reference dose (RfD). The results of bench and pilot
               testing aimed at managing mercury risks from coal-fired utility boilers was delayed until FY 2002.

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      FY 2000       FY 200-1      FY2002       FY2003
Provide a mercury research plan to act as a guide in the                    I                                                      plan
execution of an ORD-based mercury research program.

Publish results of bench and pilot testing aimed at                                       0                                        publication
identifying improved sorbents for mercury mitigation from
coal-fired utility boilers.

Make recommendations, as appropriate, for revision of                                  30-Sep-2001                               recommendati
EPA's RfD for methylmercury based on analysis of the                                                                           ons
National Academy of Sciences report on mercury.

Report on the performance/cost of reducing mercury                               '•                                1             report
emissions taking into account coal properties,combustion
conditions, flue gas cleaning technologies and other air
pollution control systems.
                                                                10

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Baseline:       EPAs 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.

OBJECTIVE 04: 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.

Research

Pollution Prevention Tools and Methodologies

In 2001         EPA integrated a waste reduction algorithm with costing software and a chemical process simulation package, and completed a decision support tool for
               life cycle analysis of municipal solid waste to enhance a preventive approach to risk management and the use of pollution prevention options.

In 2000         Computer-based tools capable of preventing or reducing pollution in chemicals and industrial processes were developed by completing the products
               fisted below, and other research activities.

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 1999         Completed a draft prototype decisoin support tool for alternative municipal solid waste management.

Performance Measures                                  FY 1999      FY2000      FY2001      FY 2002       FY2003
Complete prototype decision support software for           30-sep-1999
alternative municipal solid waste management options.

Complete dev. of the PARIS II Software, a tool to design    •              30-Sep-2000                                            software
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                    30-Sep-2000                                            tool
cycle analysis of municipal solid waste management
options.

Provide an upgraded &  enhanced Solvents Alternatives                    30-Sep-2000                                            software
Guide (SAGE) software (expert) to incl. cost algorithms,
giving it cost projection capability  to complement its
process selection capability


                                                                103

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Integrate the process change/waste reduction algorithm                                    I                                           package
(WAR) with costing software (Icarus) and a chemical
process simulation package (Aspen).

Complete a decision support tool for life cycle analysis of                                 1                                           tool & report
municipal solid waste management options.

Publish a peer-reviewed protocol for conducting Risk                                      0                                           protocol
Management Evaluations.

Complete grant on development of tool for predicting                                      0                                           grant report
biodegradability of compounds.



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 2003         Develop 10  testing protocols and complete 40 technology verifications for a cumulative Environmental Technology Verification (ETV) program total of
                230 to aid industry, states, and consumers in choosing effective technologies to protect the public and environment from high risk pollutants.

In 2001         EPA developed, evaluated, and delivered technologies and aproaches that eliminate, minimize, or control high risk pollutants from multiple sectors.
                Delivery of the evaluative report on the Environmental Technology Verification (ETV) pilot program is delayed until FY 2002,

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.

In 1999         Goal exceeded by three verifications for a total of 53 completed verification reports; 98 additional technologies in process and 202 applications pending;
                65 protocols and generic test plans developed; 724 stakeholders in 15 stakeholder groups attended 32 stakeholder meetings.

Performance Measures                                     FY 1999       FY2000       FY2001       FY2002      FY2003
Provide verification data on 50 or more technologies.         30-sep-1999
Complete test protocols for all 12 ETV pilots will be              '         51                                                         protocols
available.

Verify 125 technologies (cumulative since 1996).                          58         •                                                technologies
                                                                    1C

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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.

Verify and provide information to States, technology
purchasers, and the public on 40 air, water, pollution
prevention and monitoring technologies for an ETV
programmatic total of 230 verifications.

Complete an additional 1 0 stakeholder approved and peer-
reviewed test protocols in all environmental technology
categories under ETV, and provide them to testing
organizations world-wide.
40
10
report



report



report




grant report


verifications




protocols
Baseline:        Actual environmental risk reduction is directly related to performance and effectiveness of environmental technologies purchased and used. Private
                sector technology developers produce almost all 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.  In FY 02, the first year of operating, after the pilot period ended in FY 01, the Environmental
                Technology Verification (ETV) Program will have delivered in FY 02 more than 20 additional protocols, making them available to the entire research
                and testing community, and will have verified approximately 30 additional technologies for a programmatic total of 180, making data on their
                performance available for public use as well.

OBJECTIVE 06 : 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.
                                                                 105

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GOAL 09: A CREDIBLE DETERRENT TO POLLUTION AND GREATER COMPLIANCE WITH THE LAW
EPA will ensure full compliance with laws intended to protect public health and the environment.

       OBJECTIVE Olr 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.

       Non-Compliance Reduction

       In 2003        EPA will direct enforcement actions to maximize compliance and address environmental and human health problems.

       In 2001        EPA directed enforcement actions to maximize compliance and address environmental and human health problems.

       In 2000        Deterred and reduced noncompliance and achieved environmental and human health improvement. 74.9% of concluded enforcement actions required
                      environmental or human health improvement, such as pollution reduction.
       Performance Measures
       Millions of pounds of pollutants required to be reduced
       through enforcement actions settled this fiscal year.(core
       optional)

       Establish statistically valid noncompliance rates or other
       indiciators of noncompliance for selected environmental
       problems.

       Establish baseline to measure percentage of significant
       violators wiith reocurring significant violations within 2
       years of returning to compliance.

       Establish baseline to measure average length of time for
       significant violators to return to compliance or enter
       enforceable plans/agreements

       Produce a report on the number of civil and criminal
       enforcement actions initiated and concluded (core required)

       75% of concluded enforcement actions require physical
       action that result in pollutant reductions and/or changes in
       facility management or information practices^ OECA will
       break out the %.
FY 1999
FY 2000
714
FY2001
660
FY 2002
FY 2003
300
                          74
                                        75
                           M pounds



                           indicators



                           baseline



                           baseline



                           Report


                           Percent
                                                                     1C

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Develop and use valid compliance rates or other indicators
of compliance for selected populations.
Reduce by 2 percentage points overall the level of
significant noncompliance recidivism among CAA, CWA,
and RCRA programs from FY 2000 levels

Increase by 2 percent over FY 2000 levels the proportion of
significant noneomplier facilities under CAA, CWA, and
RCRA which returned to compliance in less than two years.
(core required)

Maintain or reduce the level of significant noneomplier
recidivism under the CAA.

Maintain or reduce the level of significant noneomplier
recidivism under the CWA.
Maintain or reduce the level of significant noneomplier
recidivism under RCRA.

Maintain or decrease the proportion of significant
noneomplier facilities under CAA which returned to
compliance in more thatn two years.
Maintain or decrease the proportion of significant
noneomplier facilities under CWA which returned to
compliance in more than two years.

Maiintain or decrease the proportion of significant
noneomplier facilities under RCRA which returned to
compliance in more than two years.
6


2.4



1.33
                             <=25


                             <=55


                             <=17


                             <=15



                             <=19



                             <=15
Populations


PercentagePoi
nt


PercentagePoi
nt
percent

percent

percent

percent


percent


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 noncompliers to return to compliance, reducing noncompliance recidivism rates, and improvements
                in facility process and/or management practices through behavioral changes. The baseline rates for many of these measures were established in FYOO.
                These measures will complement the traditional enforcement measures of inspections and enforcement actions to provide a more complete picture of
                environmental results from the enforcement and compliance program.

Inspections/Investigations

In 2003         EPA will conduct inspections, criminal investigations, and civil investigations targeted to areas that pose risks to human health or the environment,
                display patterns of non-compliance, or include disproportionately exposed populations.
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In 2003         EPA will provide direct investigative, forensic, and technical support to the Office of Homeland Defense, FBI and /or other federal, state and local law
                enforcement agencies to help detect and prevent, or respond to, terrorist-related environmental, biological or chemical incidents.

In 2001         EPA conducted inspections and civil and criminal investigations targeted to areas with patterns of non-compliance, that pose risks to human health or
                the environment, or incldue disproportionatley 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 enf. 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) enf. actions.
Performance Measures
Number of EPA inspections conducted (core required)

Percent of inspections and investigation (civil and criminal)
conducted at priority areas

Number of Criminal Investigations

Develop a list of high priority facilities in Indian country
for the enforcement and compliance program.

Number of Civil Investigations

Establish minimum core compliance monitoring program
for selected high priority facilities in Indian country.

EPA will respond to investigative leads that relate to
security of homeland environment, FBI requests for
support, and participate in all National Special Security
Events as requested.
FY 1999
FY2000
20,123
15
              477
              660
FY2001
17,812
               482
               1

               368
FY 2002
FY 2003
14000
                             400
                             180.

                             4

                             100
                             inspections

                             percent


                             Investigations

                             list


                             Investigations

                             Percent


                             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 FY03, EPA will maintain its enforcement presence by conducting at least 14,000 inspections, 400 criminal investigations and 1 80 civil
                investigations.
Quality Assurance

In 2003         Identify noncompliance, and focus enforcement and compliance assurance on human health and environmental problems, by maintaining and improving
                quality and accuracy of data.

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In 2001          EPa maintained and continued to improve enforcement and compliance data used 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
Complete concept and begin design phase of General
Enforcement Mgt system (GEMS)

continue concept phase and begin design phase of PCS
modernization

Complete Phase 1 of Integrated Compliance Information
System (IC1S) development (programming) and begin
Phase II.

Operate 14 information systems housing national
enforcement and compliance assurance data with a
minimum of 95% operational efficiency.

Design and develop Phase II of 1CIS (modernization of the
Permit Compliance System (PCS)) by September 2003.
Ensure that enf. and compl. data is reported in 14 nat. info.
systems to provide Fed. and state programs accurate and
timely data through which env. and human health problems
can be identified.
FY 1999       FY2000      FY2001
              30-Sep-2000


              30-Sep-2000
FY 2002       FY 2003
                            95
                                                        95
                            date


                            date


                            Phase



                            Percent



                            Data System


                            efficiency
Baseline;        EPA's ability to target and measure effectiveness of its enforcement activities depends upon reliable and up-to-date data systems.  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.


Capacity Building

In 2003          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.
                                                                  109

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In 2001         OECA improved the capacity of states, localities and tribes to conduct enforcement and compliance programs.

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                                    FY 1999      FY2000      FY2001       FY2002       FY 2003
Specialized assistance & training                           218                                                                    Courses

Number of EPA-assisted inspections to build capacity                      713                                                      inspections

Conduct EPA-assisted inspections to help build state                                     895                          250           Inspections
program capacity

The National Enforcement Training Institute will train                                    428                  •                      personnel
Tribal personnel.

Provide tribal governments with 50 computer-based                                      235                          50            Training
training (CBT) modules.                                                                                                         module



Baseline:        Improve capacity of states,  localities and tribes to conduct enforcement and compliance programs by providing training as well as assistance with state
                and tribal inspections.

International Enforcement

In 2003         Ensure compliance with legal requirements for proper handling of hazardous waste imports and exports.

In 2001         EPA did ensure compliance with legal requirements for proper handling of hazardous waste imports and exports.

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 haz 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                                    FY 1999       FY2000      FY2001       FY2002       FY2003
Import / Export Notifications                               1539                                                                   Notifications

Ensure proper handl ing of 200,000 tons of hazardous waste  n/a                                           •                          tons
exports



       ;                                                            1IC

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Track, consent to, and /or acknowledge the movement of                                            •                  100           percent
haz. wastes into and out of the U.S. to ensure proper
management to protect the env. and public health and
safety.



Baseline:        In FY03, 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.


OBJECTIVE 02; 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.

Compliance Incentives

In 2003          Increase opportunities through new targeted sector initiatives for industries to voluntarily self-disclose and correct violations on a corporate-wide basis.

In 2001          EPA increased opportunities through targeted sector initiatives for industries to use one of the self-disclosure policies.

In 2000          Increased entities self-policing and self-correction of environmental problems through use of small business and small community policies.

Performance Measures                                  FY 1999      FY2000       FY2001      FY2002      FY2003
Number of facilities that self-disclosed potential violations.                 2,200                                                   facilities

Facilities voluntarily self-disclose and correct violations                                   1754                       500           Facilities
with  reduced or no penalty as a result of EPA self-
disclosure policies.

Increase opportunities for corporate-wide voluntary self-                                                             2             initiatives
disclosure through targeted sector initiatives.



Baseline:        EPA developed its Audit/Self-Policing Policy in 1995 to encourage corporate audits and subsequent correction of self-discovered violations. That
                Policy as well as the Small Business Compliance Policy were modified in FYOO. The Agency is working to expand the use of the Audit Policy through
                aggressive outreach to specific sectors.  In FYO1 the performance measure  was modified to reach settlements with 500 facilities to voluntarily self-
                disclose and correct violations. This same measure has been carried continued.
                                                                 Ill

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Regulated Communities
In 2003 '        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         EPA continued to expand the compliance assistance program for the regulated community.
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 inc. use of comp. incentives and the understanding of, and ability to comply with, reg. requirements by operating 9 small bus.
                compl. asst. centers (meeting target), completing]0 sector notebooks, guides, etc, (target 5), and conducted 22 (target 15) Fed. fac. mgt. reviews.
Performance Measures                                    FY 1999
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.
EPA will complete 80% of the compliance assistance tools
listed in the previous year's compliance Assistance Activity
Plan.
50% of recipients of compliance assistance from funded
assistance pilot projects will increase their understanding of
environmental requirements or facility management
practices. (Core optional)
Number of facilities, states, technical assistance providers
or other entities reached through targeted compliance
assistance (core optional)
Develop compliance assistance tools listed in the
Compliance Assistance Plan.
Increase compliance assistance center usage,                36
FY 2000
FY2001
FY 2002
FY 2003
455,581

140
              550,000
              203
                                           80
                                           50
                            475,000
                                           Centers
                                           Sector Guides
                                           Reviews
                                           facilities

                                           tools
                                           Percent

                                           Percent
                             Entities

                             Tools

                             percent
                                                                   11:

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Number of tribaily owned/managed entities reached
through the Agency's targeted compliance assistance.
70% of survey respondents find the Compliance Assistance
Center useful to very useful in helping them understand
applicable environmental regulations
60% of servey respondents took an action, in whole or in
part, due to information found through Center services or
resources.
249
30
                             70
                             60
entities
               percent
               percent
Baseline;        EPA provides clear and consistent descriptions of regulatory requirements to assure that the community can understand its obligations.  EPA supports
                initiatives targeted toward compliance in specific industrial and commercial sectors or with certain regulatory requirements.  Compliance assistance
                tools range from plain-language guides, fact sheets, checklists and newsletters. New distribution methods include the on-line Clearinghouse. In FY03,
                EPA is planning to reach 475,000 facilities, slates, or technical assistance providers through targeted compliance assistance efforts.
                                                                    113

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GOAL 10: EFFECTIVE MANAGEMENT

EPA will maintain the highest-quality standards for environmental leadership and for effective internal management and fiscal responsibility by
managing for results.

       OBJECTIVE 02: PROVIDE LEADERSHIP

       Provide vision, national and international leadership, executive direction, and support for all Agency programs.

       OBJECTIVE 03: 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 responsibilities and mandates.

       Strengthen EPAs Management

       In 2003        Strengthen EPA's management services in support of the Agency's mission while addressing the challenges included in the President's Management
                     Agenda

       In 2003        Strengthen EPA's management services in support of the Agency's mission while addressing the challenges included in the President's Management
                     Agenda.

       Performance Measures                                FY 1999      FY 2000      FY2001       FY2002      FY2003
       Number of Agency offices using the workforce planning                                                        5            Offices
       model which identifies skills and competencies needed by
       the Agency for strategic recruitment, retention and
       developmental training.

       Percentage of total eligible service contracting dollars                                                           30           Percent
       obligated as performance based in FY2003.



       Baseline:       Based on FY 2002 performance, baselines are: Zero for number of Agency offices using the workforce planning model; 20% for performance-based
                     contracts, and an unqualified opinion for financial statements.

       Strengthen EPAs Management

       In 2003        Strengthen EPA's management services in support of the Agency's mission while addressing the challenges included in the President's Management
                     Agenda


                                                                  11

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In 2003         Strengthen EPA's management services in support of the Agency's mission while addressing the challenges included in the President's Management
               Agenda,

Performance Measures                                  FY 1999      FY.2000      FY200!      FY2002      FY2003
Agency audited Financial Statements are timely, and                      •                                        ' one           Finan
receive an unqualified opinion.                                                                                               statement



Baseline:       Based on FY 2002 performance, baselines are: Zero for number of Agency offices using the workforce planning model; 20% for performance-based
               contracts, and an unqualified opinion for financial statements.

OBJECTIVE 03: 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.

Energy Consumption Reduction

In 2003         By 2003, EPA will achieve a 15% energy consumption reduction at its 21  laboratories.

In 2001         In FY 2001 the Agency completed projects which will significantly reduce energy consumption at five EPA-owned laboratories.

In 2000         EPA has impiemented 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 prevention techniques at 4 labs.

Performance Measures                                  FY 1999      FY2000      FY2001      FY2002      FY2003
Improve energy efficiency and reduce energy consumption    4                                                                   Labs
in EPA labs.

Energy consumption of BTUs per square foot.                            304000                                                 BTUs per
                                                                                                                         Sq/Ft
Number of energy saving projects at EPA owned facilities.                               5                                        Projects

Cumulative percentage reduction in energy consumption                                                           15            Percent
(from 1990).
                                                                15

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Baseline:        In FY 2000, energy consumption of British Thermal Units (BTUs) per square foot is 320,000 BTUs per square foot.



OBJECTIVE 04: PROVIDE AUDIT, EVALUATION, AND INVESTIGATIVE PRODUCTS AND SERVICES

Provide audit, evaluation, and investigative 'products and advisory services resulting in improved environmental quality and human health.

Fraud Detection and Deterrence

In 2003         Improve Agency management and program operations by identifying savings, recoveries , and fines equaling 150 percent of the investment in the OIG,
                and by preventing fraud and reducing the risk of loss through 50 criminal, civil, or administrative actions.

In 2001         We met our goal to increase our effectiveness in detecting & deterring fraud & other improprieties that undermine the integrity of Agency
                programs/resources. Investigations resulted in 120 judicial, administrative & other actions taken to enforce laws & reduce/avoid risk & $5.3 millions in
                savings.

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 referred for action, reducing average time of case completion, & more fraud awareness briefings.

Performance Measures                                   FY 1999       FY2000       FY2001       FY 2002       FY2003
Monetary value of fines, judgments, settlements,            $.8           70.8                                                     Million
restitutions, and savings.

Judicial, administrative, and other actions taken to enforce    73            107                                                      Actions
law, reduce or avoid risk.

Percentage of cases completed resulting in referrals.                       51.3        .                                             % Of Cases

Percentage of cases completed or referred within one year.                  48.2                                                     % Of Cases

Number of judicial, administrative,  or other actions taken.                                                             50             Actions

Return on the annual dollar investment in the OIG                                                                    150           Percent



Baseline:        In FY 2001, 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.

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Audit and Advisory Services

In 2003         Improve environmental quality and human health by recommending 75 improvements across Agency environmental goals, identifying and
                recommending solutions to reduce 20 of the highest environmental risks, and identifying 20 best environmental practices.

In 2001         The OIG exceeded its annual performance goals of providing timely, independent auditing and consulting services responsive to the needs of our
                customers that provide value to the agency and recommendations to improve program and operational performance and integrity.

In 2000         OIO provided timely, independent auditing and consulting services responsive to the needs of customers/stakeholders 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       FY2000
Potential monetary value of recommendations, questioned     124.°         55.3
costs, savings and recoveries.

Examples of IG recommendations/advice or actions taken     60            78
to improve the economy, efficiency, and effectiveness of
business practices and environmental programs.

Construction Grants Closeout Audits                       24

Overall customer and stakeholder satisfaction with audit                    76
products and services (timeliness, relevancy, usefulness and
responsiveness.

Number of environmental improvements made, reductions
in environmental risks.

Number of best environmental practices identified
FY2001
FY 2002
FY 2003
                            95


                            20
                             Million


                             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.
                                                                   117

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Special Analysis

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Environmental Protection Agency
2003 Annual Performance Plan and Congressional Justification
Table of Contents
Special Analysis
        Annual Performance Plan Components	,	,	 SA-1
        Charging Administrative/Management Costs	,	,	SA-2
        EPA User Fee Program	SA-3
        EPA's Customer Service Program	,	SA-5
        FY 2002 Revised Annual Plan 	,	,	SA-10
        Homeland Security	SA-14
        Homeland Security Summary	,	,	SA-19
        Key Programs by Appropriation	SA-23
        Major Management Challenges	,	 SA-34
        Pensions and Benefits Accrual Proposal	,	SA-42
        STAG Appropriation Account: Components	'.	SA-43
        STAG Categorical Program Grants: National Program Management & State Grant	 SA-44
        STAG Categorical Programs Grants: Statutory Authority and Eligible Uses	SA-45
        Working Capital Fund	 SA-54

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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 performance...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 in 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
                                      SA-1

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           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 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 2003 Annual Plan/OMB Submission, FY 2003 OMB Request, FY 2002
  President's Budget and FY 2001 Enacted 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 2003,2002 and 2001 are:
Dollars in Thousands            FY2003         FY 2002            FY2001

Rent, Utilities and Security         $201,932         $196,468            $184,176

Management Services and         $111,554         $122,278            $110,675
Stewardship

Legal Services                   $43,223           $42,114             $39,526
                                      SA-2

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                             EPA USER FEE PROGRAM

      In FY 2003, 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 FY 2003, EPA expects to collect $11,000,000 from this fee.

      Pesticide Tolerance Fee

      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 FY 2003, EPA 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 FY 1999.

      This request is based on the issuance of a final tolerance fee rule on October 1, 2002 with
      an effective date of March 31, 2003.  EPA anticipates collecting $58,000,000 in fees in
      FY  2003, which  would provide  funding for the tolerance program at current services
      levels.  The  remaining collections would be used at some future time.

      Pre-manufacturing Notification Fee

      Since 1989, this fee has been collected for the  review  and processing of new chemical
      Pre-Manufacturing Notifications (PMN) submitted to  EPA by the chemical  industry.
      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 $1,800,000 in PMN fees in FY 2003 under the
      existing fee  structure. The  removal of the statutory fee cap is discussed below under User
      Fee Proposals.
                                       SA-3

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       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 deposited in the U.S. Treasury. EPA estimates that less than
       $500,000 will be deposited in FY 2002 and FY 2003.  Deposits should increase to up to
       $800,000 in FY 2004 because many individuals will need to recertify and many training
       program providers will be applying for new or additional accreditation.

User Fee Proposals

       Removal of the Statutory Cap on the Pre-manufacturing Notification Fee

       The Agency is proposing authorizing and appropriations language to remove, the statutory
    .   cap on the existing Pre-Manufacturing Notification (PMN) fees to allow EPA to cover
       the full cost of the PMN program.  The authorizing language would remove the current
       statutory cap in the Toxic Substances Control Act on the total fee that EPA is allowed to
       charge.  The fee  change would be subject to an appropriations language trigger that
       would allow the fees to be counted as discretionary. Under the current fee structure, the
       Agency will collect $1,800,00.0 in FY 2003. 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 2003, after the anticipated rulemaking, the  Agency estimates collections of an
       additional $4,000,000.
                                        SA-4

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                       EPA's CUSTOMER SERVICE PROGRAM

 Background

       EPA's Customer Service Program (CSP) has been actively promoting the provision of
 citizen centered services and products to all our external and internal customers since 1993.  The
 Agency is committed to providing the  highest quality  service possible to the American people
 and to achieving the Bush Administration's goal of making all aspects of the Executive Branch's
 management practices and operations equal to or better than the best service in the private sector.

       The CSP staff, who coordinate and support all aspects of the Program, are located in the
 Office of Policy, Economics and Innovation within the  Office of the Administrator.  Directly, or
 through contractors, the staff supports 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; coordinates an annual national customer service conference in partnership
 with  a  regional  host  and/or  Federal  partners;  develops  and disseminates training  and
 measurement support tools and techniques;  and gathers and shares best practices and success
 stories to speed adoption of customer service  innovations.  By  involving approximately 400
 individuals from staff and management through CSSC workgroups and office/region/laboratory
 Customer Service.Councils, the CSP leverages its three-person staff to  implement the Agency's
 Customer Service Strategy.                  .

       EPA considers the American people to be its number one customer. As we enforce laws
 and administer our many non-regulatory programs, we must  understand and 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 a better partner  and to produce better  environmental results.  Customer service
 does  not take the place of intelligent program strategies;  rather, it is an integral part of every
•strategy.

 What Improved Customer Service Will Achieve

 Agency Strategy and Plans:

       Late in 1998, the CSSC adopted a Customer Service Program Strategy that focuses on:

 1.     helping all EPA employees understand the importance and substantial  mission-related
       benefits of improving service to  the public and each other;
 2,     providing  employees with  goals (standards) and guidelines for  improvement  and
       involving them in identifying and attempting to eliminate barriers to achieving customer
       service excellence;
 3.     providing training to build staff capacity to achieve the standards and effectively apply
       customer service skills, and building a culture that encourages learning;
 4.     developing  tools and building  capacity to gather formal and informal feedback and
       measure customer satisfaction (service, product  and process improvement) over time;

                                        SA-5

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5.     learning what we need to do to increase satisfaction with our services and our treatment
       of customers; and,
6.     recognizing and rewarding customer service excellence.

       Since October 2000, twenty-two offices and regions have been implementing their plans
for building-world class customer service across the Agency.  CSP staff is tracking progress and
providing assistance to program offices. The main elements of the plans follow,

             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.

7.     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,

8.     Sharing/Benchmarking  -  Investigate, discover and implement practices from  the  best
             public and private sector service leaders.

9.     Accountability/Recognition - Hold everyone responsible for providing service excellence
             and recognize outstanding efforts.

10.    Personal Development - Provide opportunities for as many people as possible to attend at
             least one customer service workshop.

Standards:

       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:

11.          Be helpful!  Listen to your customers!
12.          Respond to all phone calls by the end of the next business day.
13.          Respond to all correspondence within 10 business days.
14.          Make clear, timely, accurate information accessible.
15.          Work collaboratively with partners to improve all products and services.
16.           Seek and use customers' ideas and input!

       In addition to the Six Principles, EPA has specific service standards for its core processes
of permitting; rule  making, state,  local and tribal grants; pesticides  regulation; public access
(correspondence, telephone, and electronic); research grants, and partnerships.  All standards are
posted on the  CSP web site [http://www.epa.gov/customerservice/standards.htm] along with a
section on  what   to  expect  from  EPA  when  they  are  customers  of these  processes
[http://www.epa.gov/customerservice/principles.htm].
                                        SA-6

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       The Permits Core  Process  group developed a  document, the "Customer Service  in
Permitting  Tool Kit"  [http://www.epa.gov/customerservice/permits/]  to  assist EPA  and  its
partners in permitting, and began distribution in 2000.  With regional sponsors and participation
from the states, the CSP launched full  day workshops using the Tool Kit to focus on key
attributes of permitting services and  practical  ways to  obtain and use customer  feedback  to
improve permitting.

Feedback and Measurement:

       Because customer satisfaction measurement is  central to the CSP,  staff developed
"Hearing the  Voice of the Customer  -  Customer  Feedback and  Customer  Satisfaction
Measurement Guidelines"  [http://www.epa.gOv/customerservice//feedback/voice.htrn]  in  1998.
The CSP sponsors workshops to train  advisors/consultants to assist people across the Agency to
use the Guidelines to obtain  and use customer input. CSP staff and these advisors assist other
staff to prepare surveys that they can endorse and send to EPA's liaison to the Office  of
Management and Budget (OMB).

       All feedback instruments are cleared through OMB under the CSP generic Information
Collection Request (ICR) for customer satisfaction surveys.  A renewal of that clearance will  be
prepared during FY 2003 to extend the  ICR beyond the current March 2003 expiration date.
During 2001, with CSP staff assistance,  the Office of Environmental Information  launched  an
OMB-approved standardized .web site survey and began encouraging web site managers to use
that survey instrument  to learn  from  their users what and how to improve their Internet web
pages.  The CSP also encourages organizations to establish systems to document complaints and
comments, track responses, and make improvements.

       EPA offices annually sponsor many surveys and focus group  sessions with outside
customers.   Most survey  instruments are  developed  independently  by staff,  managers and
contractors for different programs.  Some of these feedback activities are accomplished quickly
and efficiently, but many are not. The CSP initiated a project in 2001 to gather and consolidate
survey information from across  the Agency on an intranet site.  This will enable programs that
are inexperienced in effective feedback to learn from more experienced programs.  It will also
give offices that  have not  performed surveys information that may help them focus  their
activities more effectively.

       The CSP staff coordinated EPA's participation in the American Customer Satisfaction
Index (ASCI) Survey.  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, the 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.  Using the results of the ASCI and
the many follow-up surveys, focus groups, and usability testing performed to clarify findings, the
Agency continually makes changes to  improve its websites,
                                       'SA-7

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Training/Conferences:

       Over 200 EPA staff are certified to facilitate training across the Agency.  Many have
delivered  "Forging the Links" (an EPA-specific workshop that ties  service improvement to
better       mission       performance)       and       customer       skills       courses
[http://www.epa/customerservice/training.htm].    Through  sharing benchmarking  and  best
practices information and by convening the only government sponsored annual customer service
conference, the CSP supplements training opportunities.   Optional training workshops follow
each annual conference.  The conferences showcase outstanding speakers, excellent trainers and
best-in-class service deliverers. They bring together EPA, Federal, state and local government
employees and managers  to  share information  that speeds adoption of  best  -practices.
[http://www.epa.gov/customerservice/conference.htm]

       Each year, the conference  has served to advance  customer service innovation within
EPA.  As it expanded to include additional Federal, state  and local agencies and  their service
contractors, the conference has served to speed innovation far beyond EPA. Conference themes
have included:  delivering citizen centered government, measuring customer satisfaction  and
acting on customer feedback, being accountable to customers, recognizing excellence, partnering
for better service delivery, and using technology (e-gov) to improve access and services.  Staff
members from EPA and its co-sponsors record all  sessions and gather all presentations.   The
CSP staff develop  conference proceedings  and post the  compiled notes and  papers on the
customer service website to further extend the  effectiveness of the conferences.
[http://www.epa.gov/customerservice/conference,htm]

Recognition:

       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.  Administrator Whitman
presented the first Honor Awards for excellence in customer service hi 2001.

Expected Results

       In FY  2003, the Agency will continue to implement its customer service strategy.  The
expected results follow:

 17.    policy  and guidance will better integrate customer service excellence with achieving
       EPA's mission;
 18.    communications and liaison with senior managers  and other Federal and state partners
       will assure consistent and rapid follow-up;
 19.    best practices research and benchmarking assistance will lead to continued improvements
       in processes, products and services;
20.    direct CSP staff assistance and contractual support to workgroups, program and regional
       offices will speed implementation of customer service plans;

                                        SA-8

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21.     customer service and related training opportunities will increase the customer focus of the
       Agency;
Tl.     continuous support for feedback and measurement  activities will prevent duplicative
       surveys and speed survey clearances;
23.     a sixth 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;
24.     increased access to CSP information  via the  Intra- and Internet and a gateway to other
       customer service information will enable more people to understand the benefits of world
       class customer service; and
25.     service excellence will be a core value at EPA.
FTE:  3.0   .
Funding:  $300,000  (salaries/benefits)    $150,000 (contract request)
                                        SA-9

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                     FY 2002 REVISED FINAL ANNUAL PLAN

      As in the case of the past three Annual Plans, EPA has opted to prepare a Revised Final
Annual Plan for FY 2002.   The primary purpose of the  revised plan is to update annual
performance goals and targets using FY 2001 performance data and reflecting  Congressional
action on EPA's portion of the FY 2002 President's Budget. The FY 2002 Final Annual Plan
was included in the Agency's FY 2002 budget request which was  released in April of 2001,
approximately six months prior to the beginning of FY 2002.

      The  FY 2002 Annual Plan included weH over 500 annual performance goals (APGs) and
annual performance measures (PMs). The Agency has been criticized for its large number of
APGs/PMs.  As part of the development of the  FY  2003 Annual Plan, EPA undertook a
concerted effort to improve the quality and reduce the number of externally-reported APGs and
PMs.  As a result of this effort to create a smaller,  more meaningful set of goals and measures
EPA has determined that there are important performance results that should be captured in the
narrative section of this document but do not necessarily warrant a separate APG or PM. In most
cases, EPA will continue to use these goals and measures for internal management purposes.
EPA has also determined that some of these changes should also be made for the corresponding
FY 2002 APGs and PMs.  As such, a number of the changes reflected in the FY 2002 Revised
Final Annual Plan are not included in the main body of this document.

      Listed below are the FY 2002 APGs and PMs that were not in ten strategic goal chapters
of the FY 2003 Annual Plan/Congressional Justification but were included in the Agency's FY
2002 Annual Plan. These APGs/PMs will also be referenced in the  Agency's FY 2002 Annual
Report:	
Notes:
      The goals and measures listed as "Former Goals" represent those goals and measures as
      they existed in the FY 2002 AnnualPlan,
      The goals and measures listed as "Revised Goals" represent those goals and measures as
      . they currently exist.
      The strikeouts (indicated by a line through the text) listed in the "Former Goals" section
      indicate that language was deleted from the goal or measure.
      The bold (indicated by darkened text) listed in the "Former Goals" section indicate that
      revised language was added to the goal or measure.
                                      SA-10

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GOAL 5: Safe Waste Management
OBJ 1. (OECA)

Former Goal:
Revised Goal:

Explanation:
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.

Performance Measure: Ensure fairness by making orphan share offers at
100% of all eligible settlement negotiations for response work.
Target: 100%

Performance Measure: Provide finality for small  contributors by entering
into de minimis settlements and report the number of settlers.
Target: 18%

 Reclassify performance measures as reporting (internal).

This APG no longer needs to be highlighted with these PMs. The need to
emphasize fairness in the  Superfund enforcement is now routine. Orphan
share offers  are routinely  made at all  eligible  sites, and de  minimis
settlements are entered into with small contributors as appropriate.  These
measures are no longer necessary to highlight routine activities.
OBJ  1. (OECA)

Former Goal: 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).

                    Performance Measure: Evaluate liability concerns - 100% of PPA requests
                    addressed up to a maximum of 40 requests.
                    Target: 100%
                                       SA-11

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Explanation: The new Brpwnfields  legislation, the  Small Business Liability Relief and
                   Brownfields  Revitalization  Act,  reduces  the  need  for  prospective
                   purchaser agreements and comfort letters. It provides liability protection
                   for prospective  purchasers,  contiguous property owners, and  innocent
                   landowners among other hindrances to brownfields cleanup. EPA will
                   continue to pursue liability concerns as needed.
Coal 6; dfthal fhanpft

OBJ 2. (OAR)

Former Goal:  Demonstrate technology for an 85 MPG mid-size family sedan that has low
                   emissions and is safe, practical, and affordable.

                   Performance  Measures:  Fuel  Efficiency  of EPA-Developed PNGV
                   Concept Vehicle over EPA Driving Cycles Tested

Revised Goal: This goal will be permanently dropped beginning in FY 2002.

                   Performance  Measures:  This  measure will  be  permanently  dropped
                   beginning in FY 2002.

Explanation:  The Administration has  eliminated the PNGV program for FY 2003. As a result,
                   our FY 2002 work has been  recharacterized to lead into  what  the
                   Administration has asked us to do in FY 2003.  In-FY 2002, EPA will
                   continue work under two CRADA partnerships with private industry to
                   transfer  passenger car technology to SUV  and urban  delivery  vehicles.
                   Given this, we have crafted a new APG for FY 2003  that describes the
                   EPA goal relative to the CRADA partnerships.
OBJ 2. (OAR)

Former Goal:
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.
                                       SA-12

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OBJ 2. (OAR)

Former Goal:      Provide  analysis,  assessment,   and  reporting   support  to
                   Administration officials, the Intergovernmental Panel on Climate
                   Change, and the Framework Convention on Climate Change.
OBJ 2. (OAR)

Former Goal:      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
                   MMTCEby2010.
OBJ 3. (OAR)

Former Goal:      Increase  the  number of children participating in the  Sun Wise
                   School Program by 25%, and reduce the rate of sunburns among
                   participants by 5%.
                                   SA-13

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                              HOMELAND SECURITY

Introduction

      EPA played a critical role in responding to the September 11, 2001, attacks at the World
Trade Center in New York City and the Pentagon.  At the World Trade Center, the Agency aided
in debris removal from Ground  Zero, combined  efforts with Occupational Health and Safety
Administration and the New York City  Department of Health to  monitor worker exposure to
contaminated dust and partieulate matter, and coordinated with the New York City Department
of Environmental Protection  to sample drinking  water  and ambient  air quality.  Similar
monitoring efforts were conducted at the Pentagon crash site.  At the Senate Hart Office Building
in Washington, D.C., EPA worked with the Sergeant at Arms, who served as the lead, during the
Anthrax decontamination process, which was successfully completed in January 2002.

      EPA recognizes that establishing comprehensive homeland security does not end with the
conclusion of cleanup efforts in New York and Washington, DC.  In FY 2002 and FY 2003 the
Agency will be investing  over $300 million for preparedness and response activities.

FY 2001/2002 Immediate Response

      Immediately following the September 11, 2001 attack at the World Trade Center (WTC)
in New York City, EPA entered into the first in a series of Mission Assignments with the Federal
Emergency Management Agency (FEMA) for  response work at Ground Zero.  By  the end of
December, the Mission Assignments totaled $42.6 million.  Subsequent to December 31, FEMA
transferred an additional $52.7 million to EPA via Inter-Agency  Agreements to continue the
work through mid-2002, making the total amount $95.3 million. EPA's assignments included:

      •     Implementation of  personnel and  equipment decontamination  operations for
             thousands  of on-site workers;
      •     Conducting continuous air and water sampling in and around the WTC  site;
      *     Conducting asbestos sampling, radiological monitoring and waste categorization
             monitoring at the Staten Island Landfill;
      •     Vacuum cleaning of sidewalks, streets, and buildings in the WTC area.

      These operations have been continually  maintained since September 11, 2001, under the
overall management of Region 2's Superfund response program and supported by the East Coast
Environmental  Response Team, as  well  as  staff  and management from EPA's  other nine
Regional offices.

      EPA  criminal investigators also  assisted the  FBI  and other local  and Federal  law
enforcement organizations at the  WTC site. Agency staff aided in the collection of crime scene
evidence, photographic documentation, and related investigative duties.

      At the Pentagon  crash site, EPA emergency responders worked with the FBI and the
Department of Defense from September 11  through September 29, 2001 to collect air, water, and

                                      'SA-14    .

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debris samples to ensure the safety of response personnel,  Pentagon employees, and nearby
residents.  The Agency's air monitoring did not detect any pollutants from the fires and building
debris.  EPA sampling also indicated that there was no threat of drinking water contamination.
EPA criminal investigator staff provided the FBI with crime scene investigative support in the
areas of body recovery, evidence collection, and assistance at the morgue.

       EPA's homeland security emergency response efforts entered a new phase in October
2001, beginning with the discovery of Anthrax in Florida.   The Agency responded to private
sites, the U.S. Postal Service (USPS) and, other government agency sites, and the Capitol Hill
complex.  The Superfund emergency response program has provided the personnel, equipment
and contractors to provide assessment, technical assistance and remediation services according to
the needs of each site. Through the end of January 2002, EPA has obligated over $20 million for
Anthrax cleanup at the Capitol Hill complex.

       EPA's criminal  investigations program  provided  direct investigative  and forensic
assistance to the FBI, Capitol Police, Sergeant at Arms, Senate  Director of Security, and the
Senate Select Intelligence  Committee. Activities included  documenting and  gathering crime
scene evidence, removing  suspected  contaminated mail from several Capitol  Hill facilities,
examining mail to obtain additional evidence, and environmental sampling of hot zones on the
5th and 6th  floors of the Hart Building and several other location.  EPA's criminal program is
continuing to provide criminal investigative and technical support to the FBI's Joint Terrorism
Task Forces and the Attorney General's Anti-Terrorism Task Forces across the country.

FY. 2002 Emergency Supplemental Appropriation

       The 2002 Emergency Supplemental Appropriations Act provided $175.6 million to EPA,
The Agency allocated these resources to address the most imnortant priorities, described below.

       In the President's request to Congress, following the attacks on the World Trade Center
and the Pentagon, the security of Federal facilities was highlighted as an imperative issue.  A
total of $30  million was provided to assess the security needs at EPA buildings and laboratories
and mitigate those to the extent possible.  Investments include, but are not limited to: additional
contract guards, cameras, X-ray  machines, blast resistant glass, closed circuit TVs,  locks, and
motorized gates.

       The nation's water supply is one of our most vital natural  resources.  Potential threats to
this resource include contamination with biological, chemical, or radiological agents; destruction
of physical infrastructure; and disruption of electrical and computer systems.  EPA will invest
$88.8 million to support enhancement of security at the nation's drinking water systems,  $79.8
million  will be used to  direct  grants  to the  largest drinking water systems to carry  out
vulnerability systems and enhance emergency response plans, to provide technical assistance on
vulnerability assessments and emergency response plans to  small and medium drinking water
systems, and to further refine security-related detection, monitoring, and treatment tools.  In  FY
2002 EPA will invest $4 million in accelerating the development and testing of counter terrorism
tools, supporting training for the development of vulnerability assessments, providing technical

                                        SA-15

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assistance,  and conducting research on'redesign and detection of  collection  and treatment
systems, and testing and implementation of this research.  In addition, the Agency will provide
$5 million to the states to support homeland security coordination work in conjunction with EPA
and drinking water utilities to implement homeland security activities.  EPA will also develop
tools and training for medium and  small drinking water utilities to assess vulnerabilities and
develop appropriate emergency response plans.

       Any major terrorist incident,  whether involving explosives,  conventional  hazardous
materials or radiological,  chemical  or  biological agents necessitates an EPA response.  This
includes first assessing the risks to public health, the environment, and response workers; second,
managing  and mitigating the  hazards  of residual contamination;  and third,  conducting
assessments of the adequacy of the response sufficient to allay the  concerns of the public who
will re-occupy the affected area. The ability to  effectively execute these tasks is crucial in
providing homeland security.  Creating a West Coast Environmental Response Team (ERT) will
enable the  Agency to respond more rapidly to an event beyond the immediate reach of EPA's
current dedicated response team based in New Jersey. The  Agency will also use Supplemental
resources to enhance preparedness and response effectiveness within each EPA Regional office,
fortify the  East Coast ERT, and increase Headquarters support.  Specific investments  include
equipment  (breathing apparatus,  chemical agent monitors, field analytical and communications
equipment,  etc.);  training and exercises  for  EPA  responders and On-Scene  Coordinators;
participation in inter-agency events with the Federal Bureau of Investigation (FBI), FEMA, and
others; pre-deployment of security at national events, such as the  2002 Winter Olympics and
IMF/World Bank meetings; and coordination with  states  and local communities  to  include
homeland security preparedness in their emergency planning  programs.

       EPA worked to clean up the Hart Senate Office Building from anthrax  contamination,
while also  assisting at the Brentwood facility in Washington, DC and the AMI  building in
Florida. Staff provided direct investigative and forensic assistance to the FBI and Capitol Police,
bringing the Agency's subject matter expertise to bear on the gathering of potential crime scene
evidence; removal and examination of suspected contaminated mail  from several Capitol Hill
facilities; and  environmental sampling of hot zones in the Hart Building. The 2002 Emergency
Supplemental  Appropriation Act provided resources for EPA's cleanup efforts, as well as funds
to hire and train additional criminal investigators.

       The 2002  Emergency Supplemental Appropriation  Act also provides funds to initiate
research and development activities in support of homeland security  needs.  With these resources
EPA will develop a unique pathological  suite at its Cincinnati lab capable of sampling and
evaluating  Anthrax and other  biological agents.  In addition, EPA will use these resources to
evaluate the performance of drinking water treatment  systems for their ability to  cost effectively
remove inactivate biological and chemical warfare agents.   Finally,  these increased resources
will provide scientifically based data  to assist in selecting effective technologies  to  destroy
chemical and biological contaminants on surfaces and in buildings.

       At present, there are no registered pesticide products for killing anthrax. Accordingly,
EPA expects an upsurge in requests to market new antimicrobial products many  of which much

                                        SA-16

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be tested on an expedited basis for homeland defense. To prepare for such reviews, EPA will be
focusing on chemicals  that can combat other microbes,  both professional decontamination
products and some

clinical/household disinfectants that may be  effective against multiple  biological terrorism
threats. The Agency will be reviewing requests to market new anthrax and other microbe-killing
pesticides.

       EPA will  deal with potential homeland  security problems from  misuse of industrial
chemicals, by accelerating work in detecting and analyzing the impact of potential threats from
exposure to toxic  industrial chemicals. Additional information needed to determine the risks to
human health  from short-term exposures to  acutely toxic chemicals will be developed, and
subsequently disseminated through the 50 State Emergency Response Commissions (SERCs) to
more than 3,500 Local Emergency Planning Committees (LEPCs).

       Preserving and protecting the quality  of air is a critical aspect of ensuring homeland
security. EPA's monitoring efforts at the World Trade Center  site illustrate the importance of
monitoring ambient air and indoor air. Resources will be used to: purchase field equipment that
enables the Agency to screen for contamination,  collect samples, ensure protection of response
personnel, and inform the public.  In addition, EPA will invest in mobile assets, such as sample
preparation trailers, mobile radioanalytical labs, and liquid scintillation counters.  The Agency
will  provide  training to new laboratory and headquarters  support  personnel and  facilitate
coordination efforts with other agencies.

       The attacks  of September 11, 2001, directly affected EPA personnel  in the New York
area.   Information technology  and communication equipment  in the  Agency's downtown
Manhattan office was destroyed or damaged; the building was closed for several weeks; and staff
were  relocated to an EPA  facility in  Edison, New Jersey.   A  portion  of  the Supplemental
Appropriation will be used to reimburse costs of replacing and maintaining  equipment at this
location. With regards to public  access and environmental information, EPA will use resources
to provide  environmental  updates on environmental data to the  Agency's web-site regarding
cleanup efforts at  the World Trade Center.

FY 2003 President's Request                                                         .

       The President's FY 2003 request includes $19 million to continue security upgrades of
EPA facilities and maintain the increased contract guards that were initiated with funds from the
2002 Emergency  Supplemental Appropriation. This investment  sustains  the Administration's.
commitment in preserving a safe and healthy Work environment for all Federal employees.

       Building on its  2002 investments, the Agency's  requests $16.9 million  to conduct
additional drinking water vulnerability assessments for small and medium-sized systems, and $5
million in grants to states to support homeland security coordination.
                                        SA-17

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       EPA will continue to operate the West Coast ERT in FY 2003. The President's request
includes $5.5 million for the maintenance of this program.  An additional $7.7 million is also
being requested to upgrade EPA response capabilities.

       In  FY 2003, EPA  is investing $3.8  million for  special  agents  who  will  provide
environmental crimes expertise to the FBI's Joint Terrorism Task Forces and the Department of
Justice's Anti-Terrorism Task Forces,  Personnel will also form five National Counter Terrorism
Response Teams to coordinate with FBI field offices, perform protection duty services for the
Administrator's Office, and proved on-site investigative support for designated National Security
Special Events.  Additionally, experts at the National Enforcement Investigations Center will
respond with technical support in the event of a hazardous chemical release intended to threaten
homeland security.

       One of EPA's ten goals is to provide the public with quality environmental information.
In FY 2003, the Agency will  invest $0.5  million to enhance  outreach and ensure that the
American people are kept informed on the issues of homeland security and the environment.

       The FY 2003 President's Budget requests an additional $75 million to conduct research
on better technologies  and assessments to cleanup buildings contaminated by biological  and
chemical agents.   These  efforts will include the transfer of technologies and guidance  on
decontamination processes, evaluation of existing and new cleanup and detection technologies,
development of risk  assessment methodologies,  and  production  of rapid  decontamination
techniques  and technologies. The incidents in Florida, New York, and Washington, DC illustrate
the potential use of biological and chemical agents as deadly weapons. Through these research
efforts, EPA will work to achieve a higher degree of preparedness which will strengthen Federal
response efforts.                                                      .
                                        SA-18

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      U.S. Environmental Protection Agency




FY 2002/2003 HOMELAND SECURITY SUMMARY




             (Dollars in thousands)
Goal
Objective
Appropriation
Clean Air
Attain NAAQS
EPM
S&T
Reduce Air Toxics Risk
S&T
Clean and Safe Water
Safe Drinking Water
S&T
STAG
Reduce Loadings
EPM
Safe Pood
Reduce Risk
FY2002 FV2002 FY2002 FV2002
Base FTE Supplemental Supplemental
Resource Resources FTE
Declarations
S874.0
$520.5
$0.0
$520.5
$3.53.5
$353.5
S3,764.1
$3.264.1
$3.264.1
$0.0
$500.0
$500.0
$14.0
$0.0
9.2
6.9
0.0
6.9
2.3
2.3
12.0
12.0
12.0
0.0
0.0 •
0.0
0.2
0.0
$600.0
$600.0
$600.0
$0.0
$0.0
$0.0
$88,794.0
$87,794.0
$82,794.0
$5,000.0
$1,000.0
$1.000.0
$1,465.4
$602.6
0.0
0.0
0.0
0.0
0.0
0.0
10.0
10.0
10.0
0.0
0.0
0.0
2.7
1.4
FY 2003 FY 2003 FY '.
Base President's Bu<
Resource Budget
Request Investments F1
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$1,946.5
$1,946.5
$1,946.5
$0.0 .
$0.0
$0.0
$0.0
$0.0
$0,0
$0.0
$0.0
$0.0
• $0.0
$0.0
$20,000.0
$20,000.0
$15.000.0
$5,000.0
$0.0
$0.0
$0.0
. $0.0
                           SA-19

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       EPM
   Eliminate Use on Food
       EPM
       S&T

Preventing Pollution
   Reduce Public and
       EPM
   Reduce Risks from Lead
       EPM
   Manage New Chemical
       EPM

Better Waste Management
   Control Risks
       EPM
       Superfund
   Regulate Facilities
       S&T

Quality Environmental Info
   Increase Availability
       EPM
   Provide Access
       EPM
       S&T
$0.0
$14.0
$0.0
$14.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$3,192.4
$3,185,4
$0.0
$3,185.4
$7.0
$7.0
$607.8
$600.8
$600.8
$7.0
$0.0
$7.0
0.0
0.2
0.0
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
12.1
12.0
0.0
12.0
0.1
0.1
5.0
4.9
4.9
0.1
0.0
0.1
$602.6
$862.8
$862.8
$0.0
$1,734.6
$482.4
$482.4
$150.0
$150.0
$1,102.2
$1,102.2
$42300.0
$42.300.0
$3,300.0
$39,000.0
$0.0
$0.0
52,181.5
$0.0
$0.0
$253.1
$253.1
$0.0
1.4
1.3
1.3
0.0
3J
2.0
2.0
0.0
0.0
1.3
1.3
80.0
80.0
5.0
75.0
0.0
0.0
6.0
0.0
0.0
3.0
3.0
0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$3,185.4
$3,185.4
$0.0
' $3,185.4
$0.0
$0.0
$473.3
$473.3
$473.3
$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
$0.0
$83,125.0
$83,125.0
$0.0
$83,125.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
                                                                           SA-20

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Improve Agency Info
EPM
Superfund
Sound Science
Conduct Research
S&T
Improve Scientific Basis
S&T
Enhance Capabilities
S&T
Improve Environmental
S&T
Superfund
Credible Deterrent
Increase Compliance
EPM
Superfund
Promote Compliance
Superfund
Effective Management
Provide Quality Work Env,
EPM
S&T
$0.0
$0.0
$0.0
$579.6
$65.5
$65.5
$360.1
$360.1
$147.6
$147.0
$7.0
$7.0
$0.0
$3,4573
$2,715.5
$2,715.5
$0.0
$741.8
$741.8
$0.0
$0.0
$0.0
"$0.0
0.0
0.0
0.0
5.0
0.9
0.9
1.9
1.9
2.1
2.1
0.1
0.1
0.0
30.0
24.0
24.0
0.0
6.0
6.0
0.0
0.0
0.0
0.0
$1,928.4
$1,028.4
$900.0
$1,474.0
$0.0
$0.0
$0.0
$0.0
$1,440.6
$1,440.6
. $33.4
$33.4
. $0.0
$7,010.5
$7,010.5
$5,618.5
$1,392.0
$0.0
$0.0
$30,040.0
$30,040.0
$24,000.0
$6,040.0
3.0
3.0
0.0
2.0
0.0
0.0
0.0
0.0
2.0
2.0
0.0
0.0
0.0
50.0 '
50.0
40.0
10.0
0.0
0.0
3.0
3.0
3.0
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
$0.0
$3,807.0
$3,807.0
$3,03.6.3
$770.7
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$1,875.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$1,875.0
$0.0
$1,875.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$19,000.0
$19,000.0
$6,000.0
$1,500.0
SA-21

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B&F                               $0.0           0.0               $0.0             0.0             $0.0          $11,500.0

                              $12,489.2          73.5          $175,600.0           157.0          $9,412.2         $124,000.0
Note: Table does not include FEMA reimbursable resources
                                                                         SA-22

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              Environmental Protection Agency

FY 2003 Annual Performance Plan and Congressional Justification

                       Key Programs
                   (Dollars in Thousands)
Key Program
ATSDR Superfund Support ..
Acid Rain -CASTNet
Acid Rain -Program Implementation
Administrative Law
Administrative Services
Administrative Services
Administrative Services
"Air Toxics Research
Air.StateJLocal and Tribal Assistance Grants:
Other Air Grants
American Indian Environmental Office
Assessments
Assistance Agreement Audits
Assistance Agreement Audits
Assistance Agreement Audits
Assistance Agreement Audits
Assistance Agreement Investigations
Assistance Agreement Investigations
Assistance Agreement Investigations
Beach Grants
Brownfields
Brownflelds
Brownfields
Brownfields
Capacity Building
Capacity Building
Capacity Building
Capacity Building
Carbon Monoxide
Carbon Monoxide
Carbon Monoxide
Chesapeake Bay
Children's Indoor Environments
Approp.
EPM
S&T
EPM
EPM
EPM
SUPERFUND
Total
S&T
STAG
EPM
SUPERFUND
IG
IG SFUND
XFER
Superfund-lG
Total
10
Superfund-lG
Total
STAG
EPM
STAG
SUPERFUND
Total
EPM
S&T
SUPERFUND
Total
EPM
S&T
Total
EPM
EPM
FY2001
Enacted
$0.0
$3,991.2
$12,248.7
$2,567.3
$15,520.3
$14,211.8
$29,732.1
$19,077.0
$227,724.5
$10,014.8
$79,417.5
$1,631.7
$.1,855.9
$0.0
$3,487.6
$793.6
$0.0
$793.6
$0.0
$2,634.9
$0.0
$89.905.4
$92.540.3
$9.917.1
$162.5
$1,611.1
$11,690.7
$3,879.8
$182.5
$4,062.3
$20,728.0
$14,714.1
FY 2002
Enacted
$654.3
$3,991.2
$12,500.2
$2,684.0
$0.0
$0.0
$0.0
$18,923.4
$240,724.5
$9,911.6
$76,472.9
$1,500.0
$0.0
$500.0
$2.000.0
$1,885.0
$1,015.0
$2.900.0
$10,000.0
$2,819.2
$0.0
$94,813.5
$97.632.7
$9,511.1
$169.6
$1,075.5
$10,756.2
$3.964.3
$294.1
$4,258.4
$20,551.8
$13.287.9
FY 2003
Request
$0.0
$3,991.2
$12,790.4
$2,869.8
$0.0
$0.0'
$0.0
$19,883.7
$240,724.5
$10,219.7
$76.236.3
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$10,000.0
$29,500.0
$170,500.0
$0.0 •
$200,000.0
$10.543.4
$175.9
$1,368.5
$12.087.8
$3,834.3
$190.8
$4,025.1
$20,650.8
$13,918.4
                         SA-23

-------
Key Program
Childrens Health, Program Development and
Coordination
Civil Enforcement
Civil Enforcement
Civil Enforcement
Civil Entbrcement
Civil Enforcement
Civil Rights/Title VI Compliance
Climate Change Research
Climate Protection Program: Buildings
Climate Protection Program: Carbon Removal
Climate Protection Prpgram: Industry
Climate Protection Program: International
Capacity Building
Climate Protection Program: State and Local
Climate Change Program
Climate Protection Program: Transportation
Climate Protection Program: Transportation
Climate Protection Program:
Transportation
Coastal Environmental Monitoring
Commission for Environmental Cooperation -
CEC
Common Sense Initiative

Communicating Research Information
Communicating Research Information

Communicating Research Information
Communicating Research Information
Community Assistance
Community Right to Know (Title 111)
Compliance Assistance and Centers
Compliance Assistance and Centers
Compliance Assistance and Centers
Compliance Assistance and Centers
Compliance Incentives
Compliance Incentives
Compliance Incentives
Compliance Monitoring
Compliance Monitoring
Compliance Monitoring
Approp.
EPM
EPM
Oil Spill
S&T
SUPERFUND
Total
EPM
S&T
EPM
EPM
EPM
EPM
EPM
EPM
S&T
Total
S&T
EPM
EPM
ORD SFUND
XFER
S&T
SFUND
RESEAR
Total
EPM
EPM
EPM
LUST
Oil Spill
Total
EPM
SUPERFUND
Total
EPM
S&T
Total
FY 2001
Enacted
$6,036.9
$95,752.3
$1,264.7
$2.979.4
$4,085.3
SI 04.08 1.7
$9,140.1
$22,550.4
$52,535.0-
$997.8
$31,929.6
" $5,501.7
$2,494.5
$2,494.5
$26,940.6
$29,435.1
$7,467.5
$3,269.0
$1,781.1

$138.3
$5,817.3

$0.0
$5.955.6
$4,174.5
$4,861.1
$25,097.8
$656.4
$267.9
$26.022.1
$10,093.3
$394.4
$10,487.7
$54,166.5
$2,614.7
$36.781.2
FY2002
Enacted
$6.099,0
$95,090.8
$1,512.0
$2,669.1
$4,289.5
$103,561.4
$11,143,6
$21,350.5
$48,571.3
. $1,549.7
$25,368.6
$6,982.8
$2,245.6
$4,404.8
$26,425.9'
$30.830.7
$7,325.3
$3.396.4
$1,838.7

$160.7
$5,383.0

$0.0
$5.543.7
$1,124.6
$4,968.4
$25.735.4
$670.0
$264.8
$26,670.2
$9,512.0
$583.3
$10.095.3
$50,572.2
$2.644.1
$53.216.3
FY2003
Request
$6,670.9
$93,182.4
$1,538.6
$2,739.0
$4.379.5
$101,839.5
$11,770.7
$21,729.3
$49,820.5
$1,576.3
$25,673.1
$7,086.5
$2,275.2
$4,447.9
$17,119.3
$21,567.2
$7,671.2
$3,535,3
$0,0

$0.0
$5,408.9

$160.7
$5.569.6
$1,428.9
$4,953.1
$25,106.7
$689.8
$271.4
$26.067.9
$9,344.6
$345.3
$9,689.9
$48,487.0
$2,711.4
$51.198.4
SA-24

-------
Key Program
Congressional Projects
Congressional/Legislative Analysis
Congressional ly Mandated Projects
Congressionally Mandated Projects
Congressionally Mandated Projects
Congressionally Mandated Projects
Contract Audits
Contract Audits
Contract Audits
Contract Audits
' Contract and Procurement Investigations
Contract and Procurement Investigations
Contract and Procurement Investigations
Correspondence Coordination
Criminal Enforcement
Criminal Enforcement
Criminal Enforcement
Criminal Enforcement
Data Collection
Data Collection
Data Collection
Data Management
Data Management
Data Management
Data Standards
Data Standards
Data Standards
Data Standards
Design for the Environment
Direct Public Information and Assistance
Disadvantaged Communities
Drinking Water Implementation
Drinking Water Regulations
Drinking Water Regulations
Drinking Water Regulations
EMPACT
EMPACT
.EMPACT
Ecosystems Condition, Protection and
Approp.
EPM
EPM
EPM
S&T
STAG
Total
1C
1G SFUND
XFER
Superfund-lG
Total
1C
Superfund-lG
Total
EPM
EPM
S&T
SUPERFUND
Total
EPM
SUPERFUND
Total
EPM
SUPERFUND
Total
EPM
S&T
SUPERFUND
Total
EPM
EPM
EPM
EPM
EPM
S&T
Total
EPM
S&T
Total
S&T-
FY 2001
Enacted
S.I, 979.2
$4,357.6
$102,581.9
$49.785.1
$353,650.4
$506.017.4
$4,165.3
$860.1
$0,0
$.5,025.4
$510,1
$0.0
S3 10.1
$2.658.6
$25,669.0
$5,095.8
$10,075.3
$40,840.1
$6,451.4
$393.4
S6.844.S
$16,680.7
$1.262.7
$17.943.4
$3,165.6
$3,032.9
$647.8
$6.846.3
$4,965.6
• $10,431.0
$4,309.6
$35,058.0
$33,585.6
$2,595.5
$36,181.1
$7,782.8
$5,986.8
$13,769,6
$101 ,267.3
FY 2002
Enacted
$2,078.6
$4,852.2
$85,223.6
$58.977.0
$343,900.0
$488,100.6
$3,900.0
$0.0
$1,300.0
$5,200.0
$2,325.0
$775.0
$3,100.0
$1,200.7
$26,321.3
$5,465.8
$9,768.6
$41.555.7
$103.1
$22.8
$125.9
$17,247.6
$1,223.0 -
$18,470.6
$1,512.9
$3,563.2
$263.8
$5,339.9
$4,707.6
$8,612.7
$4,350.8
$38,332.9
$25,908.9
$2,688.5
$28,597.4
$0.0
$0.0
$0.0
$104,492.9
FY 2003
Request
$1,991.3
$4,857.8
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0,0
$0.0
$0.0
$0,0
$1,096.3
$26,855.3
$5,643.2
$10,039.6
$42.538.1
$125.9
$0.0
$125.9
$17.768.6
$1,234.2
$19.002.8
$2,510.3
$3,633.8
$336.5
$6.480.6
$4,810.7
$8,998.4
$4,481.3
$38,935.0
$27,241.4
$2,792.6
$30,034.0
$0.0
$0.0
$0.0
$105,795.0
SA-25

-------
Key Program
Restoration Research
Effluent Guidelines
Employee Integrity Investigations
Employee Integrity Investigations
Employee Integrity Investigations
Endocrine Disruptor Research
Endocrine Disruptor Screening Program
Enforcement Training
Enforcement Training
Enforcement Training
Environment and Trade
Environmental Appeals Boards
Environmental Education Division
Environmental Finance Center Grants (EFC)
Environmental Justice
Environmental Justice
Environmental Justice
Environmental Monitoring and Assessment
Program, EMAP
Environmental Technology Verification (ETV)
Executive Support
Existing Chemical Data, Screening, Testing and
Management
Facilities Infrastructure and Operations
Facilities Infrastructure and Operations
Facilities Infrastructuce and Operations
Facilities Infrastructure and Operations
Facilities Infrastructure and Operations
Facilities Infrastructure and Operations
Facilities Infrastructure and Operations
Federal Facilities
Federal Facility lAGs
Federal Preparedness
Financial Statement Audits

Financial Statement Audits
Financial Statement Audits
Financial Statement Audits
Fish Contamination/Consumption
GLOBE
Geospatial
Approp.
EPM
1G
Superfund-IG
Total
S&T
EPM
EPM
SUPERFUND
Total
EPM
EPM
EPM
EPM
EPM
SUPERFUND
Total
S&T
S&T
EPM
EPM
B&F
EPM
LUST
Oil Spill
S&T
SUPERFUND
Total
SUPERFUND
SUPERFUND
SUPERFUND
1G
1G SFUND
XFER
Superfund-IG
Total
EPM
EPM
EPM
FY 2001
Enacted
$23,354.1
$325.8 •
$0.0
$325.8
$12,849.4
$10,128.5
$4,236.7
$1,041.0
$5.277.7
$1,700.0
$1,553.1
$9,003.4
$1,249.0
$4,148.5
$997.8
$5.146.3
$29,613.7
$6,294.0
$2,835.7
$24,522.4
$23,878.4
$270,069.3
$847.3
$517.6
$21,405.7
$55,444.3
$372.162.6
$30.622.0
$8,455.1
$9,728.2
$3,250.3

$749.7
$0.0
$4.000.0
$3.188.4
$997.8
$522.3
FY2002
Enacted
$22,773.4
$750.0
$250.0
$1,000.0
$10,722.4
$8,952.4
' $3,230.3
$717.0
$3.947.3
$1,672.6
$1,667.3
$9,160.2
$2,000.0
$4,164.4
$900.0
$5.064.4
$32,426.0 '
$3.607.7
$3,113.0
$28,286.4
$25,318.0
$280,850.7
. $841.5
$454.1
$17,409.9
' $57,507.1
$382381.3
$31,206.5
$8,784.7
$9,849.3
$3.000.0

$0.0
$1,000.0
$4.000.0
$2,764.8
$0.0
$983.2
FY2003
Request
$23,010.3
$0.0
$0.0
$0.0
$12,178.7
$9,063.5
$3,145.4
$735.0
$3.880.4
$1,844.3
$1,737.7
$0.0
$2,000.0
$4,078.8
$900.0
$4.978.8
$38,259.6
$3,617.6
$3,121.2
$28,331.9
$31.418.0
$279.773.2
$824.7
$451.9
$8,539.0
$55.357.0
$376.363.8
$31,915.5
$9,091.7
$9,883.0
$0.0

$0.0
$0.0
50.0
$2,788.4
$0.0
$743.4
SA-26

-------
Key Program
Geospatial
Geospaiial
Global Toxics
Global Trade Issues for Pesticides and Chemicals
Grants to States for Lead Risk Reduction
Great Lakes
Great Lakes National Program Office
Gulf of Mexico
Hazardous Air Pollutants
Hazardous Air Pollutants
Hazardous Air Pollutants
Hazardous Substance Research:! lazardous
Substance Research Centers
Hazardous Substance Research:Hazardous
Substance Research Centers
Hazardous Substance Research:Hazardous
Substance Research Centers
Hazardous Substance Research:Hazardous
Substance Research Centers
Hazardous Substance Research:Superfund
Innovative Technology Evaluation (SITE)
Hazardous Substance Research:Superfiind
Innovative Technology Evaluation (SITE)
Hazardous Substance Research:SuperJund
innovative Technology Evaluation (SITE)
Hazardous Waste Research
Homeland Security
Homeland Security
Homeland Security
Homeland Security
Homeland Security
Homeland Security
Homeland Security
Homestake Mine
Human Health Research
Immediate Office of the Administrator
Indoor Environments
Indoor Environments
Indoor Environments
Information Exchange Network
Information Integration
Approp.
SUPERFUND
Total
EPM
EPM
STAG
EPM
EPM
EPM
EPM
S&T
Total
ORD SFUND
XFER
SFUND
RESEAR
SUPERFUND
Total
ORD SFUND
XFER
SFUND '
RESEAR
Total
S&T
B&F
EPM
HOMELAND
SECURITY
S&T
SFUND
RESEAR
SUPERFUND
Total
STAG
S&T
EPM
EPM
S&T
Total
STAG
EPM
FY2001
Enacted
$0.0
$522.3
$1,579.3
$2,703.7
$13,682.0
$3,114.4
$15.266.3
$4,341.2
$49,407.8
$3,882.4
$53,290.2
$2,282.6
$0.0
$2,245.1
$4,527. 7
$6,554.0
$0.0
$6,554.0
$6,990.0
$0.0
$0.0
$0.0
$1,963.2
$0.0
$3,194.0
15.157.2
$0.0
$49,825.7
$3,994.1
$8,579.3
$662.6
$9.241.9
$0.0
$5.860.2
FY 2002
Enacted
$32.1
$1.015.3
$1,522.8
$3,091.2
$13.682.0
$3,208.6
$14,929.7
$4,261.6
$48,130.9
$4,094.4
$52,225.3
$2,331.7
$0.0
$2,245.1
$4,576.8
$6,501.0
$0.0
$6.501.0
$9,088.3
$0.0
$3,816.3
$170,600.0
$4.745.7
$0.0
$3,927.2
$183.089.2
$0.0
$47.225.6
$3,175.9
$9,036.7
$329.5
$9.366.2
$25,000.0
$5,783.6
FY2003
Request
$0.0
S743.4
$1,415.1
$3,125.4
$13,682.0
$2,684.7
$15,128.2
$4,327.4
$48,687.2
$3,935.2
$52,622.4
$0.0
$2,354.1
$2,245.1
$4.599.2
$0.0
$6,545.0
$6,545.0
$9,548.7
$11,500.0
$9,509.6
$0.0
$1«,446.5
$75,000.0
$13,95.6.1
$128,412.2
$8,000.0
$51,824.5
$4.343.7
$8.978.1
$329.5
$9.307.6
$25.000.0
$17,057.0
SA-27

-------
Key Program
Information Integration
Information Integration
Information technology Management
Information Technology Management
Information Technology Management
Information Technology Management
Intergovernmental Relations - OA
International Safe Drinking Water
Investigations
Investigations
Investigations
LUST Cleanup Programs
Lake Champlain
Lead
Lead Risk Reduction Program
Leaking Underground Storage Tanks
(LUST)Cooperative Agreements
Legal Services
Legal Services
Legal Services
Long Island Sound
Management Services and Stewardship
Management Services and Stewardship
Management Services and Stewardship
Management Services and Stewardship
Management Services and Stewardship
Management Services and Ste\vardship
Marine Pollution
MuIti_Media Communications
Multilateral Fund
NACEPT Support
NAFTA Implementation
NEPA Implementation
NPDES Program
National Associalion.Liaison
National Estuaries Program/Coastal Watersheds
National Nonpoint Source Program
Implementation
National Program chemicals: PCBs, Asbestos,
Fibers.and Dioxin
New Chemical Review
Approp.
SUPERFUND
Total
EPM
S&T
SUPERFUND
Total
EPM
EPM
IG
Superfund-lG
Total
LUST
EPM
EPM
EPM
LUST
EPM
SUPERFUND
Total
EPM
EPM
LUST
Oil Spill
S&T
SUPERFUND
Total
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
EPM
FY 2001
Enacted
$0.0
$5.860.2
$27,394.4
$187.0
$3,212.4
$30,793.8
$3,111.2
$384.4
$0.0
$0.0
$0.0
$10,055.4
$1,995.6
$329.5
$14,214.3
$58,341.3
$38,594.5
$810.9
$39,405.4
. $4,989.0
$87,515.4
$368.2
$6:2
$129.5
$27,142.3
$115.161.6
$8,198.5
$0.0
$10,975.8
$1,560.6
$403.3
$11,081.4
$40,961.5
$235.5
$20,151.9
$16.644.6
$6,103.8
$14.224.5
FY 2002
Enacted
.$332.5
$6,116.1
$25,291.0
$0.0
$3,230.4
$28,521.4
$3,687.2
$0.0
$0.0
$0.0
$0.0
$10,067;4
$2,500.0
$342.2
$13,092.6
$59,331.9
$41,783.6
$819.5
$42,603.1 ,
$2,500.0
$96,334.8
$48'6.1
$44.7
$176.8
$40,115.1
$137,1.57.5
$7,994.8
$821.3
$9,575.8
$1,803.1
$514.3
$11,507.5
$40,991.0
$346.0
$24,521.3
$16,488.6
$6,775.5
$14,088.8
FY2003
Request
$3,100.0
$20,157.0
$25,544.4
$0.0
$2,537.9
$28.082.3
$4,128,1
$0.0
$6,959.4
$2,510.2
$9.469.6
$10,285.4
$954.8
$339.6
$13,166.3
$58,341.2
$45,458.2
$844.5
' $46,302.7
$477.4
$107,290.8
$518.3
$53.2
$198.7
$41,245.0
$149,306.0
$8,170.7
$870.3
$9,575.8
$1,670.1
:$747.9
$11,785.8
$41,720.8
$262.5
$19,246.2
$16,908.6
$6,994.5
$14.730.2
SA-28

-------
Key Program
Nitrogen Oxides
Oil Spills Preparedness, Prevention and
Response
Other Federal Agency Superfund Support
Ozone
Ozone
Ozone
PBTI
POPs implementation
PWSS - Homeland Security
Pacific North west
• Paniculate Matter
Paniculate Matter
Paniculate Matter
Participate Matter Research
Partnerships to Reduce High Risk Pesticide Use
Performance Track
Pesticide Registration
Pesticide Registration
Pesticide Registration
Pesticide Reregistration
Pesticide Reregistration
Pesticide Reregistration
Pesticide Residue Tolerance Reassessments
Pesticide Residue Tolerance Reassessments
Pesticide Residue Tolerance Reassessments
Pesticides Program Implementation Grant
Planning and Resource Management
Planning and Resource Management
Planning and Resource Management
Planning and Resource Management
Planning, Analysis, and Results - 10

Planning, Analysis, and Results - 1G
Planning, Analysis, and Results - 1G
Planning. Analysis, and Results - 1C
Pollution Prevention Incentive Grants to States
Pollution Prevention Program
Preventing Contamination of Drinking Water
Sources
Program Audits'
Approp.
EPM
Oil Spill
SUPERFUND
EPM
S&T
Total .
EPM
EPM
STAG
EPM
EPM
S&T
Total
S&T
EPM
EPM
EPM
S&T
Total
EPM
S&T
Total
EPM
S&T
Total
STAG
EPM
LUST
SUPEftFUND
Tola!
1G
IGSFUND
XFER
Superfimd-lG
Total
STAG
EPM
EPM
1C
FY2001
Enacted
$1,379.4
$11,948.9
$10,676.5
$32,322.5
$35,783.8
$68.106.3
. $2,455.1
$0.0
$0.0
$1,078.6
$32,466.9
$23,150.4
$55.617.3
$65,457.3
$11,851.9
$1,995.6
$39,813.2
$2,069.2
$41.882.4
$33,844.6
$2.110.0
$35.954.6
$14,656.3
$137.2
$14.793.5
$13,085.5
$34,630.0
$907.0
$12.056.5
$47.593.5
$7,916.1

$1,547.2
$0.0
$9,463.3
$5,986.3
$10,066.4
$22.424.7
$4.148.9
FY2002
Enacted
$1,325.5
$11,795.4
$10,676.0
$32,783.9
$35,671.2
$68,455.1
$2,572.5
$0.0
$5,000.0
$1,003.8
$29,561.0
$22,741.7
$52,302.7
$65,468.2
$10,407.0
$1,834.6
$41,005.9 •
$2,006.8
$43.012.7
$35,218.6
$2,364.7
$37,583.3
$14,671.8
$0.0
$14.671.8
$13,085.5
$38,560.2
$772.3
$16,962.8
$56.295.3
$4,609.0

$0.0
$1.677.0
$6.286.0
$5,986.3
$9.597.8
$23,470.2
$3.675.0
FY2003
Request
$1,399.0
$12.332.2
$10,676.0
$34,763.6
$42,735.2
$77,498.8
$2,580.5
$680.3
$5,000.0
$1,028.5
$32,118.5
$30,505.8
$62,624.3
$66,662.0
$12,279.8
$1,834.6
$39,981.5
$2,138.7
$42.120.2
$45.993.2
$2,377.9
$43.371.1
$5,267.9
$0.0
$5,267.9
$13,085.5
$43.857.8
$813.9
$18,119.4
$62,791.1
$0.0

$0.0
$0.0
$0.0
$5,986.3
$9,902.8
$22,096.8
$0.0
SA-29

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Key Program
Program Audits
Program Audits
Program Audits
Program Evaluation - 1Q
Program Evaluation - 1O
Program Evaluation - 1G
Program Evaluation - 1C
Program Evaluations/Audit
Program Evaluations/Audit
Program Evaluations/Audit
Program Integrity Investigations
Program Integrity Investigations
Program Integrity Investigations
Project XL
Public Access
Public Access
Public Access
Public Access
RCRA Corrective Action
RCRA Enforcement State Grants
RCRA Improved Waste Management
RCRA State Grants
RCRA Waste Reduction
Radiation
Radiation
Radiation
Radiation
Radon
Radon
Radon
Recreational Water and Wet Weather Flows
Research
Regional Geographic Program
Regional Haze
Regional Haze
Regional Management
Regional Management
Regional Management
Regional Management
Approp.
IG SFUND
XFER
Superfund-lG
Total
IG
IG SFUND
XFER
Superfund-JG
Total
IG
Superftmd-IG
Total
IG
Superfimd-IG
Total
EPM
EPM
S&T
SUPERFUND
Total
EPM
STAG
EPM
STAG
EPM
EPM
S&T
SUPERFUND
Total
EPM
S&T
Total
S&T
EPM
EPM
Total
EPM
LUST
Oil Spill
SUPERFUND
FY2001
Enacted
$2,030.1
$0.0
$6, 1 79.0
$10,877.2
$4,431.7
$0.0
$15,308.9
$0.0
$0.0
$0.0
$400.0
$0.0
$400.0
$3,075.3
$10,265.4
$577.9
$691.6
SI 1,534.9
$41,150,9
$43,127.6
$62,477.7
$63.236.0
$11,689.0
$14,124.1
$5,200.1
$2,064.1
$21.388.3
$4.945.7
$1,277.0
$6.222.7
$5,926.4
$8.192.3
$2.305.9
$2.305.9
$33.146.5
$104.3
$24.9
$8,617.6
FY2002
Enacted
$0.0
$1,225.0
$4.900.0
$11,250.0
$0.0
$3,750.0
$15.000.0
$0.0
$0.0
$0.0
$1,125.0
$375.0
$1,500.0
$0.0
$12,93U
$279.3
$703.8 •
$13,9143
$38,262.3
$42,904.7
$61,174.6
$63,458.9
$14,633.7
. $13,897.5
$5,546.2
$2,180.3
$21.624.0
$5;095.7
$1,357.3
$6.453.0
$5,635.8
$7,609.2
$2,535,9
$2,535.9
$32,104.4
$143.7
$23.8
$8,485.0
FY2003
Request
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0.
$0.0
$28,365.6
$10,231.8
$38,597.4
$0,0
$0.0
$0.0
$0.0
$14,068.3
$324,8
$1,176.3
$15.569.4
$38,965.2
$42,904.7
$61,860.0
$63,458.9
$13,740.7
$14,253.5
$5,931.3
$2,234.3
$22,419.1
$5,095.7
$1,398.2
$6,493.9
$5,496.$
$8,651,1
$2,408.1
$2,408.1
$32,476.8
$143.7
$23.8
.$8,577.2
SA-30

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Key Program
Regional Management
Regional Operations and Liaison
Regional Program Infrastructure
Regional Program Infrastructure
Regional Program Infrastructure
Regional Program Infrastructure
Regional Science and Technology
Regional and Global Environmental Policy
Development

Regulatory Development
Reinventing Environmental Information (REI)
Reinventing Environmental Information (REI)
Reinventing Environmental Information (REI)
Reinventing Environmental Information
(RED
Research to Support Contaminated Sites

Research to Support Contaminated Sites
Research to Support Contaminated Sites
Research to Support Contaminated Sites

Research to Support Contaminated Sites
Research to Support Contaminated Sites
Research to Support Emerging Issues
Research -to Support FQPA

Research to Support Pollution Prevention
Research to Support Pollution Prevention

Research to Support Pollution Prevention
Research to Support Pollution Prevention
Research to Support Safe Communities
Risk Management Plans
SBREFA
STAR Fellowships Program
Safe Drinking Water Research
Safe Pesticide Applications
Safe Pesticide Applications
Safe Pesticide Applications
Safe Recreational Waters
Science Advisory Board
Approp.
Total
EPM
EPM
LUST
SUPERFUND
Total
EPM

EPM
EPM
EPM
S&T
SUPERFUND
Total
LUST
ORD SFUND
XFER
Oil Spill
S&T
SFUND
RESEAR
Total
S&T
S&T
ORD SFUND
XFER
S&T
SFUND
RESEAR
Tola!
S&T
EPM
EPM
S&T
S&T
EPM
S&T
Total
EPM
EPM
FY 2001
Enacted
$41,893.3
$428.3
$4,712.1
$40.0
$1,425.0
$6,177.1
$3,850.3

$2,697.8
$23,418.4
$0.0
$0.0
$0.0
$0.0
$617.5

$26.464.6
$936.8
$2,647.6

$0.0
$30,666.5
$23,365.6
$12,120.0

$980.2
$38,176.3

$0.0
$39,156.5
$20,093.7
$8,005.5
$571.9
$9,704.3
$47,784.7
$10,135.4
$0.0
$10,135.4
$917.9
$2,775.1
FY2002 FY2003
Enacted Request
$40,756.9
J547.5
$4,604.6
$0.0
$1,527.6
$6,132.2
$3,574.9

$2,362.7
$27,412.1
$7,812.1
$33.5
$778.2
$8.623.8
$687.1

$27,304.6
$905.2
$1,000.0

$0.0
$29,896.9
$28.658.5
$12,594.4

$593.0
$37,079.9

$0.0
S3 7.672.9
$21,593.6
$7,202.9
$686.2
$9,748.7
$45.579.5
$11.157.2
$25.0
$11.182,2
$834.4
$2,887.8
$41,221.5
$477.6
.$4,604.6
$0.0
$1,427.5
$6,032.1
$3,601.8

$2,046.8
$36,381.5
$7,542.8.
$0.0
,$357.2
$7.900.0
$696.0

$0.0.
$909.9
$0.0

$26,515.2
• $26.121.1
$29,150.8
$12,042.3

$0.0
$43,482.4

$593.0
$44,075.4
$25,149.6
$7,446.0
$608.8
$0.0
$49,491.0
$10,193.9
$0.0
$10.193.9
$842.7
$3,352.5
SA-31

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Key Program
Science Coordination and Policy
Sector Grants
Small Business Ombudsman
Small, Minority, Women-Owned Business
Assistance
South Florida/Everglades
State Multimedia Enforcement Grants
State Nonpoint Source Grants
State PWSS Grants
State Pesticides Enforcement Grants
State Pollution Control Grants (Section 106)
• State Toxics Enforcement Grants
State Underground Injection Control Grants
State Water Quality Cooperative Agreements
State Wetlands Program Grants
Stratospheric Ozone Protection
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 Modernisation
TMDLs
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
UST State Grants
Underground Storage Tanks (UST)
Wastewater Management/Tech Innovations
Water Infrastructure: Alaska Native Villages
Water InfrastructurerBristol County
Water Infrastructure:Clean Water State
Revolving Fund (C W-SRF)
Water InfrastructureiDrinking Water State
Revolving Fund (DW-SRF)

Approp.
EPM
STAG
EPM
EPM
EPM
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
STAG
EPM
EPM
SUPERFUND
SUPERFUND
SUPERFUND
SUPERFUND
SUPERFUND
EPM
SUPERFUND
Total
EPM
EPM
EPM
STAG ."
S&T
EPM
STAG
EPM
EPM
STAG
STAG
STAG
STAG
SA-32
FY2001
Enacted
$275,8
$2,209.3
$3,000.9
$2,048.2
$2,942.0
$0.0
$237,476.8
$93,100.2
$19,867.8
$171,883.3
$5,138.9
$10,950.9
$18,958.2
$14,967.0
$5,771.9
$12,158.1
$29,495.5
$28,437.3
$82,193.9
$498,286.4
$198,973.0
$12,163.6
$1,496.4
$13,660.0
$20,594.5
$4,162.2
$14,105.6
$52,469.7
• $6,551.0
$4,384.2
$11,918.4
$7,045.8
$9,055.0
$34,923.0
$1,935.7
$1,347,030.0
$823,185.0

FY2D02
Enacted
$492.2
$2,209.3
$3,049.1
$2,295.5
$2,648.3
$0.0
$237,476.8
$93,100.2
$19,867.8
$192,476.9
$5,138.9
$10,950.9
$18,958.2
$14,967.0
$5,602.7
$12,318.5
$29,477.5 •
$28,150.0
$81,701.1
$488,951.3
$202,654.0
$12,875.0
$815.0
$13,690.0
$21,232.1
$4,478.4
$14,155.6
$52,469.7
$6,514.8
$4,149.5
$11,918.4
$6,795.7
$8,840.1
$40,000.0
$0.0
$1,350.000.0
$850.000.0

FY2003
Request
$950.1
$2,209.3
$3,124.0
$3,305.0
$2,665.5
$15,000.0
$238,476.8
$93,100.2
$19,867.8
$180,376.9
$5,138.9
$10,950.9
$38,958.2
$14,967.0
$5,642.2
$13,624.7
$30,375.9
$28,150.0
$84,396.9
$493,646.5
$202,610.3
$12,210.0
$1,480.0
$13,690.0
$21,433.2
$4,330.1
$15,293.2
$57,469.7
$6,758.1
$5,364.6
$11,918.4
$7,026.4
$9,073.7
$40,000.0
$0.0
$1.212,000.0
$850,000.0


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             Key Program
Approp.
FY 2001
Enacted
FY2002
Enacted
FY 2003
Request
Water Infrastructure:Mexico Border              STAG
Water Quality Criteria and Standards             EPM
Water Quality Infrastructure Protection            EPM
Water Quality Monitoring and Assessment         EPM
Watershed Assistance                         EPM
Web Products Quality Control                   EPM
Wetlands                                   EPM
                  $74,835.0
                  $19,515.2
                  $16.704.3
                  $11,811,0
                   $8,467.8
                       $0.0
                  $17,651.0
                     $75,000.0
                     $18,782.4
                     $16,783.7
                     $11,665.1
                      $7,821.6
                       $879.5
                     $17,829.8
                     $75,000.0
                     $19,127.2
                     $17.239.3
                     $11,967.7
                      $9,479.1
                        $767.0
                     $18,381.9
                                                SA-33

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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. The Agency uses a system of internal program reviews, independent  reviews, and
audits by the General Accounting Office (GAO) and EPA's Office of the Inspector General
(OIG); program evaluations;  and performance measurements to  ensure that program activities
are effectively carried out in accordance with applicable laws and sound management policy and
to provide reasonable assurance that Agency resources are protected against fraud, waste, abuse,
and mismanagement.

       Over the next several years EPA faces a number of management challenges,  including the
government-wide initiatives identified in the President's Management Agenda; the  government-
wide high-risk areas and major management challenges identified by GAO  in its January  2001
update to their Performance  and Accountability Series reports to Congress, as well as issues
identified by EPA's OIG. Information is provided below on efforts underway to address these
issues and other critical management challenges facing the Agency.

Protecting Infrastructure from NontraditionalAttacks

       Presidential Decision  Directive (PDD)  63, initiated in May 1998, assigned EPA as the
designated Lead Agency and  Sector Liaison for the Nation's  water systems. To  meet the
requirements of PDD 63, EPA needs to work with private sector representatives to complete a
•national framework for protecting the critical infrastructure of the Nation's water systems  from
terrorist attack,  conduct vulnerability  assessments and risk mitigation,   and  implement  a
Vulnerability Awareness and Education Program for the water sector. EPA's OIG identified this
issue as a management challenge in FY 2002.
                                       SA-34

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       The Agency is playing a significant role in protecting the public from terrorist
attempts to endanger drinking water supplies and wastewater systems.  Agency activities
in FY2000 and 2001 were designed to initiate development of the materials, tools, and
training needed for drinking  water systems to conduct vulnerability assessments and to
begin development of a secure Information Sharing and Analysis Center (1SAC), which
will allow drinking water utilities to share threat information with the Federal Bureau of
Investigation and other utilities.  In response to the  terrorist attacks  of September 11,
2001, the Agency established a Water Protection Task Force with a staff working full-
time on implementing FDD 63 and other related activities. In FY 2002 the  Agency will
continue the development of ISAC, test and modify the vulnerability assessment tool,
support the implementation of vulnerability assessments by the 360 largest  public water
systems nationwide, develop  and disseminate guidance  for emergency response plans,
and train water  system  operators in the  application of vulnerability assessments and
remedial plans.  These activities are being funded through $83 million hi an FY 2002
supplemental appropriation.for EPA.  In addition, the Agency will make grants to states
to support homeland security coordination work with EPA and drinking water utilities to
implement counterterrorism activities.

Linking Mission and Management

       EPA's OIG believes the Agency needs to improve its planning, measuring, and
accountability by involving its partners in goal and priority setting, linking output and
outcome measures of results to its goals, and accounting for the costs of achieving those
results.  In addition, EPA needs to accumulate,  report, link, and use  environmental
information on activities and  outcomes as a basis for determining environmental return
on investment, sound resource decisions, and accountability to the public.  EPA's OIG
declared linking mission and management as.a  management challenge  in  FY2002,
combining  previous  management   challenges  on  accountability   and  managerial
accounting.

       EPA has made significant progress over the past year in linking the  management
of the Agency's resources to its mission and environmental and human health results.
EPA  involved   its state partners in the annual  planning and  budgeting process  by
considering state priorities along with  EPA headquarters and regional priorities, and
consulting with the  states  at appropriate times .during the budget development and
appropriations process.  The  Agency also developed more outcome-oriented  annual
performance goals and  measures. In August 2001 the Office of the Chief Financial
Officer (OCFO) awarded  contractor support to program offices for projects  geared
specifically toward improving annual performance goals and performance  measures. In
addition, EPA's FY 2002  Final  Annual Performance  Plan,  issued in August 2001,
includes 6 percent more outcome-based goals than the final FY 2000 Plan.  The Agency
also improved its annual report to make it more relevant to Agency decision makers.
EPA's Fiscal  Year 2001  Annual  Report  focuses  on environmental outcomes and
demonstrates how Agency activities produce meaningful results and contribute to the
health and well-being of the public.
                                    SA-35

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       In June 2001 EPA formed the Managing for Improved Results Steering Group,
composed of senior leaders from across the Agency.  The  Steering Group will make
recommendations on short- and long-term reforms to EPA's strategic planning, priority-
setting,  budgeting, and  accountability  structures and processes  to identify  potential
improvements and to  develop a change strategy that will operate  on two fronts: (1)
identify options for significant, far-reaching reforms to national processes and systems,
and  (2) pursue  incremental  changes  and smaller-scale improvements that can be
implemented immediately.    In  spring 2002 this group  will  present  the  Deputy
Administrator with options for improving EPA's results-based management processes.

       In addition, EPA continued its outreach efforts to inform Agency managers on the
benefits and uses of cost information, and worked with individual  program offices to
develop further cost accounting applications  to enhance program  management.  The
Agency met specific program needs in  such diverse areas as user fees, Superfund cost
recovery and the Working Capital Fund (WCF).

       OCFO developed cost accounting reports to  better manage critical activities and
programs.  For example, the Agency now produces Cost by Output, Superfund Site
Specific, Superfund Remedial Action, and WCF Revenue and Expense reports. Many of
these reports bring together financial,  administrative, and program information from
different systems and reports.  This was made possible through the OCFO's financial data
warehouse  and' reporting  tools  which  integrate portions of "mixed" administrative
management systems (e.g., grants and'contracts data) with the core financial system. As
a result of this integration,  the  Agency has  expanded the  range of cost information
available to  program managers and is better able to support decision-making based on
costs and results.   OCFO is  continuing to partner with Agency offices to meet current
needs and identify future applications.

       The Agency recognizes that challenges remain in better linking assessments of
program performance with resource decisions, and in identifying goals and measures that
better reflect its state partners' goals and priorities and will allow for trends analyses over
time. However, EPA made significant  progress in  FY 2001 and will continue to work
diligently toward improving its ability to link its mission and management.

Human Capital Strategy Implementation

       EPA must devote considerable attention to building a workforce with the highly
specialized skills  and knowledge required  to accomplish the Agency's work or  risk
seriously weakening its ability to fulfill even the most basic of its legal, regulatory, and
fiduciary responsibilities. With its Human Capital Strategic Plan in place, the Agency has
a blueprint for the initial and long-term  steps needed to begin addressing this impending
weakness.  In FY 1998-2002 OIG identified employee competencies as a management
challenge, and in FY 2000-2001 GAO identified human  capital  as a  management
challenge and a government-wide high risk area.  EPA implemented a corrective action
strategy and declared human capital strategy implementation as an internal Agency
weakness in FY 2000.
                                    SA-36

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       EPA developed a comprehensive approach for investing  in and  managing the
Agency's human resources and  during FY  2001 began to aggressively  implement
Investing in Our People: EPA's Strategy for Human  Capital,  2001-2003.  Specific
accomplishments in FY 2001 include (1)  graduating the second class of interns and hiring
a fourth class;  (2) launching the Senior Executive Service (SES) Candidate Development
Program, with 50 candidates to be selected for the program in 2002; (3) developing and
launching a new course for supervisors and managers that new supervisors will be
required  to take within the first 90 days of becoming a supervisor; and (4) beginning the
rollout of five  courses  created  as  part of the  Mid-Level Development Program.
Completion of corrective actions is expected by FY 2003.

Information System Security

       The availability and reliability of environmental information is dependant on the
security  of the technology  platform on  which it resides. OIG and GAO reviews and
audits have determined that EPA's security program needs considerable improvement.
Specifically, OIG audits identified that EPA needs  to  complete risk assessments on
critical information systems and to develop a centralized security program with strong
oversight processes to adequately address risks  and ensure that valuable information
technology (IT)  resources and environmental data are secure.  Audit tests of computer-
based controls concluded that the computer  operating systems and the Agency*wide
computer network systems that  support most of EPA's mission-related and financial
operations had significant security weaknesses.  At risk was the  possible unauthorized
access, use, modification, destruction, or denial of service of EPA information resources
.that could result from exploitation of vulnerabilities.  OIG identified EPA's information
system security  as a management challenge in FY 1992*2002.  GAO identified  it as a
major management challenge in FY 2000-2001,   EPA declared information systems
security plans  as a material weakness in FY 1997 arid revised the weakness in FY 2000 to
be more  comprehensive,

       EPA has made substantial  improvements in strengthening its information security
program by instituting a  comprehensive strategy that  addresses all  security-related
deficiencies. Corrective actions  include improving the Agency's risk assessment and
planning process, implementing major new technical and procedural  controls, issuing
new policies, and beginning a regular process of testing and evaluation. During FY 2001
EPA completed risk assessments for security-critical applications and systems, conducted
training  and awareness activities for information security officers and senior managers,
and provided  general awareness training for  all Agency employees.  In  addition, EPA
installed network intrusion-detection and monitoring  controls on its centrally managed
environment and plans to install additional tools on its distributed systems environment.
All corrective  actions are expected to be completed by the end of FY 2002.
                                     SA-37

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Data Management Practices

      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, the Agency needs to develop error detection processes
to ensure that errors in its databases are addressed appropriately and in a timely and
documented  fashion. EPA broadened the  scope  of  an existing internal Agency data
management weakness, consolidating Agency efforts to address the multiplicity of issues
related to information management, data accuracy, and error correction.  EPA's data
management practices was identified as a management challenge from FY 1998-2001 by
GAO  and  from  FY 1998-2002  by OIG.   EPA  declared  Information  Resources
Management (IRM) data management as an  Agency weakness in FY 1994 and expanded
the scope of the weakness in FY 2000.

      EPA  is working internally and in partnership with the states to improve data
management, comprehensiveness,  consistency,  reliability,  and  accuracy  for  better
performance measurement and achievement of  environmental results. The  Agency
completed promulgation of six key data standards and their rules for implementation in
FY 2001. The Environmental Data Standards Council  developed four additional key data
standards  in  the  areas  of permitting, enforcement and compliance, water  quality
monitoring, and tribal identifiers and expects to implement them during FY 2002. The
Agency is also  working to expand implementation of its Integrated Error  Correction
Process, which provides an effective feedback mechanism for reporting and resolving
errors identified by the public on EPA web sites. From May 2000 to September 2001,
EPA received 987 alleged errors and resolved 650 of them; the remainder are still under
review. EPA has completed major components of a data  architecture to support cross-
organizational activities and has begun to develop a formal data architecture document
that it expects to complete by May 2002.   The Agency expects to fully implement the
Central  Data Exchange to improve  reporting  of environmental  information  by the
regulated community and states to EPA by March 2004.  The Agency also expects to
complete development of a strategic plan for addressing data  gaps by December 2002.
The Agency anticipates that all  corrective actions  will  be completed  by the  end of
FY 2004.

Results-Based Information Technology Project Management

       EPA  needs a comprehensive approach to information technology (IT) capital
investment planning and a disciplined budget process for managing its assets to meet
programmatic objectives.  In addition the Agency needs to ensure that IT projects are
timely, cost-effective, and results-based.   In FY 2001-2002 EPA's  OIG identified  IT
project management as  a management challenge.  In addition in FY 2001 the Agency
declared this issue as an internal  Agency weakness and is taking a comprehensive and
systematic approach to develop  an appropriate strategy  to  better manage EPA's  IT
investments.  This strategy consists of four overall  goals: (1) automate the Agency's
capital .planning and investment control (CPIC) process by deploying the Information
                                    SA-38

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Technology Investment Portfolio System  (I-TIPS),  (2) develop a complete investment
portfolio aligned with the Agency's technology architecture, (3) improve proposal quality
and analysis,  and (4) establish efficiencies with other Agency management processes.
The Agency anticipates that all corrective actions will be completed by FY 2004.

Relationships with States (NEPPS)

       During  the  past  two  decades environmental and  human health protection
programs have  grown in size, scope and complexity.  Many  environmental problems
transcend  media and geographic boundaries and  solutions may require  innovative,
flexible,  cross-media approaches.    EPA  and the  states  realize  that traditional
arrangements  for implementing  environmental problems were  not as  efficient and
effective as they need to be.  Through NEPPS, EPA established a framework to build a
result-based management system to focus  on joint planning and priority setting and use
environmental indicators and outcome measures for accountability.  GAO identified
EPA-state relationships as a major management challenge in its January 1999 and 2001
reports to Congress on management challenges. OIG also identified EPA's relationships
with states as a management challenge in FY 2000-2002.  GAO's and OIG's concerns
center  around  fundamental  disagreements between  EPA and  the states over their
respective roles, priorities among  state environmental programs, and the  appropriate
degree of federal oversight. EPA relies upon state partners for  successful completion of
eight of the ten goals in the Agency's Strategic Plan.

       The  EPA  Administrator has placed a greater  emphasis  on improving  the
Agency's  relations with states, tribes, and other federal  agencies. In  an August 2001
policy  memorandum, the Administrator called for senior Agency leadership to  advance
the partnership through  increasing the Agency's flexibility for  states to address the
highest priority environmental problems, working with the states to improve performance
measures,  and generally  increasing the incentives  for states to  improve results-based
management under the Performance Partnership System. The Agency is also developing
tools that state  and EPA regional NEPPS negotiators can use to  clarify the appropriate
performance expectations.  In addition EPA and the Environmental Council of States
(ECOS) have an active joint workgroup to address continuing implementation issues and
work to identify  and remove remaining barriers to effective implementation of the
Performance Partnership System.

National Pollutant Discharge Elimination System Permits

       During the 1990s  the  backlog in EPA-issued major  permits tripled  and the
backlog in state-issued permits doubled. The threat of the backlog to the environment is
that  expired  NPDES permits might not  reflect the most  recent  applicable  effluent
guidelines, water quality standards, or Total Maximum Daily Loads.  Without timely
issuance of high-quality  permits, necessary  improvements in water quality might  be
delayed.  EPA  headquarters and  regional offices are working  together closely  to track
both Agency- and state-issued permit  efforts.  EPA's OIG identified the backlog  of
                                    SA-39

-------
NPDES permits as a management challenge in FY 1998-2002, and the Agency declared
NPDES permit as a material weakness in FY 1998.

       The Agency  has made  substantial progress  in  implementing  a process to
effectively reduce the historical backlog in issuing NPDES permits. EPA, in consultation
with state partners,  developed and  issued guidance—Approaches for  Reducing the
NPDES Permit Backlog—in July  1999. The guidance identifies four strategic objectives
for reducing the backlog: (1)  understand  and  better define  the backlog, (2) examine
permitting  efficiencies  and  facilitate   programmatic   and  technical  streamlining
opportunities, (3) provide funding and technical support for regions and states, and (4)
encourage regions and  states to share technical expertise and permitting tools. In May
1999 the Agency established two target dates for completion of corrective actions, one
for individual permits for major facilities and one for individual permits for major and
minor facilities combined. The target for the major facilities was to have no more than 10.
percent of the permits backlogged by the end of the 2001 calendar year; the target for the
combined major and minor facilities is 10 percent by the end  of the 2004 calendar year.
The Agency is also working closely with the regions to manage permit issuance efforts
for both EPA- and state-issued NPDES permits.  A monthly permit issuance/backlog
trend  report is distributed  to  each EPA  region and  the Agency's  stakeholders.  In
addition, the Agency is examining strategies that will  allow  concentrating attention on
eliminating the permit backlogs  that have, the most significant environmental impact..
Corrective actions are expected to be completed by the end of FY 2005.

LaboratoryQualitySyjtgm^jractices

       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.
EPA's OIG identified this issue as a management  challenge in FY 1999-2002 and EPA
declared it as an internal Agency weakness in FY 2000.

     EPA completed independent  technical reviews of its laboratories in FY 2001 to
assess  the Agency's ability to produce data of known and  documented quality.  The
Agency is currently assessing draft review reports and proposed corrective action plans
submitted by reviewed organizations.  Other ongoing activities  include assembling a
workgroup consisting  of both  EPA and  non-EPA members that  will (1) identify
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 organization will be responsible  for establishing management
controls to ensure that environmental measurement data supplied  by laboratories are 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.
                                     SA-40

-------
Improved Management of Assistance Agreements

     OIG audits have found that EPA needs to validate the effectiveness of its strategy
for ensuring effective management of its assistance agreements. In FY 2000-2002 OIG
identified  the Agency's management of assistance  agreements as  a  management
challenge. During FY 2001 EPA conducted a review to validate the effectiveness of its
post-award management policies.   The  review found that the Agency has made
considerable progress in post-award management but that further improvement is needed.
In FY 2002  EPA will consolidate all existing post-award management policies into a
single, streamlined policy. In addition, EPA will continue to review quarterly reports and
information from the Grantee Compliance Database and evaluate post-award monitoring
plans. Completion of corrective actions is expected by FY 2002.
                                   SA-41

-------
                  Proposed New Legislation for Fully Accruing
               Federal Employees Retirement and Health Benefits
       In order to reflect more accurate costs of government programs, legislation has
been proposed requiring each government Agency to account for their accrued retirement
benefits' and health care costs.  In the  past,  a portion of the Civil  Service Retirement
System (CSRS) and health care costs were centrally managed. However, this resulted in
an understatement of the true cost of government programs.

       The Budget proposes a shift of these costs from central accounts to the Agency.
This shift will  ensure all benefits are  included in EPA's budget and  provide  more
accurate cost information.  The new legislation does not effect budget outlays or alter the
surplus/deficit in any  way. Costs incurred by the Agency due to the  new legislation will
be offset by receipts in the pension and health funds.

       The chart below presents the amounts associated with shifting this cost from
centrally managed  accounts to  EPA, starting in 2003.   In  addition,  for purposes of
comparison, the amounts for fiscal years 2001 and 2002 are  provided.  This change in
treatment of costs is the first in a series of steps that will be taken to ensure that the full
annual cost of resources used is charged properly in the budget presentation,

                     Cost of Additional Agency Contributions
                               (Dollars in Millions)
Appropriation Account
Science and Technology
Environmental Programs
and Management
Office of Inspector
General
Oil Spills Response
Hazardous Substance
Superfund
Leaking Underground
Storage Tanks
FY 2003 Total
FY2001
$14.1
$62.3
$2,5
- $1.0
$1.8.6
$0.9
$99.5
FY2002
$14.8
$64.9
$2.6
$1.1
$19.4
$0-9
$103.6
FY2003
$15.3
$67.2
$2.6
$1.1
$20.0
$0.9
$107.1
                                     SA-42

-------
         STATE and TRIBAL ASSISTANCE GRANTS (STAG)
                                     Appropriation Account
                      -
                v
                     g
              Clean Water Stale Revolvin

              Drinking Water State Revol

             Consolidated State Revolvi

         Brownfields Infrastructure Proji

         Special Needs Projects
             Mexican Border
             Bristol County, MA
             Alaskan Native Villages
             South Dakota Home Stake tv

         N'eedy Cities Projects
                                           FY 2001
                                         Enacted with
                                       Recision (0.022%)

                                              51,005,782.4
                FY 2002
                Enacted
                Budget

                   $1,079376.0
                FY 2003
               Pres Budget
                  Total
                    $1,158,276.0
$1,347,030.0
$823 185 0
$2,170,215.0
	
Sill, 753.6
$74,835.0
$1,995.6
$34,923.0
	
$1,350",000.0
$850,000.0
$2,200,000.0
	
$115.000.0
$75,000,0
.....
$40,000.0
_...
$1,212,000.0
gg?nnnn
$75,000.0
: 	
$40,000.0
$8,000.0
$353,590.5
$343,900.0
$0.0
         INFRASTRUCTURE ASSISTA1      #VALUE!

TOTAL STAG                              #VALUE!
               #VALUE!

               #VALUE!
                     $2305,500.0

                     $3,463,776.0
                                              SA-43

-------
              CATEGORIAL PROGRAM GRANTS (STAG)
            by National Program Manager and State Grant
                        Dollars in Thousands
                  Grant
Air & Radiation

    State and Local Assistance
    Tribal Assistance
    Radon
Water
    Pollution Control (Section 106)
    Beaches Protection
    Counter-Terrorism
    Nonpoint Source (Section 319)
    Wetlands Program Development
    Water Quality Cooperative Agrmts
Drinking Water

    Public Water System Supervision (PWSE
    Underground Injection Control (UIC)
Hazardous Waste

    H.W. Financial Assistance
    Brownfields
    Underground Storage Tanks
Pesticides  & Toxics

    Pesticides Program Implementation
    Lead
    Toxic Substances Compliance
    Pesticides Enforcement
Multimedia

    Environmental Information
    Enforcement State (Brants
    Pollution Prevention
    Enforcement & Compliance Assurance
    Indian General Assistance Program
    TOTALS
:Y 2001 FY 2002
acted with Enacted
sion (.022%) Budget
$208,540.1
$11,044.5
$8,139.9
$227,724.5
$221,540.1
$11,044.5
$8,139.9
$240,724.5
$171,883.3 $192,476.9
$0.0 $10,000.0
$0.0 $5,000.0
$237,476.8
$14,967.0
$18,958.2
$443,285.3
$237,476.8
$14,967.0
$18,958.2
$478,878.9
.$93,100.2 $93,100.2
$10,950.9 $10,950.9
$104,051.1 $104,051.1
$106,363.6
$0.0
$11,918.4
$118,282.0
$13,085.5
$13,682.0
$5,138.8
$19,867,9
$51,774.2
$0,0
$106,363.6
$0.0
$11,918.4
$118,282.0
$13,085.5
$13,682.0
$5,138.8
$19,867.8
$51,774.1
$25,000.0
$0.0 $0.0
$5,986.3 $5,986.3
$2,209.3 $2,209.3
$52,469.7 $52,469.7
$60,665.3 $85,665.3
FY2003
Pres Budget
Total
$221,540.1
$11,044.5
$8,139.9
$240,724.5
$180,376.9
$10,000.0
$5,000.0
$238,476.8
$14,967.0
$38,958.2
$487,778.9
$93,100.2
$10,950.9
$104,051.1
$106,363.6
$50,000.0
$11,918.4
$168,282.0
$13,085.5
$13,682.0
$5,138.8
$19,867.8
$51,774.1
$25,000.0
$15,000.0
$5,986.3
$2,209.3
$57,469.7
$105^665.3
$1,005,782.4  $1,079,376.0  $1,158,276.0

SA-44

-------
FY 2003 STAG CATEGORICAL PROGRAM GRANTS
                              (Dollars in Thousands)
Grant Title


Air Resource
Assistance









Air Resource
Assistance


















Statutory
Authorities
.
Clean Air Act,
§103









Clean Air Act,
§103


















Eligible
Recipients*

®to
Air pollution
control agencies
as defined in
section 302(b) of
theCAA






Multi- •
jurisdictional
organizations
(non-profit
organizations
whose boards of
directors or
membership is
made up of CAA
section 302(b>
agency officers
and Tribal
representatives
and whose
mission is to
support the
continuing
environmental
programs of the
states);
Eligible Uses


S/L monitoring
and data
collection
activities in
support of the
establishment of
a PM2.S
monitoring
network and
associated
program costs.
Coordinating or
facilitating a
multi-
jurisdictional
approach to
addressing
regional haze.













FY 2002
Enacted

$42,500.0










$10,000.0



















FY 2003
Request

$42,500.0










$10,000.0



















FY 2003
Goal/
Objective
Goal 1,
Obj. 1









Goal 1,
Obj. 1
s

















                                 SA-45

-------
Grant Title


ir Resource
Assistance


































Air Tribal •
Assistance


















Statutory
Authorities

Clean Air Act,
Sections 103.
105, 106

































Clean Air Act,
Sections 1 03 and
105;TCAin
annual
Appropriations
Acts.














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 1 07 of
the CAA or of
implementing
section 1 76A. 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
rnulti-
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
FY 2002
Enacted

$169,040.1



































$11,044.5



















FY2003
Request

$169.040,1















•



















$11.044.5



















FY 2003
Goal/
Objective
Goal 1,
Obj. All


































Goal 1,
Obj. 1

Goal 1.
Obj. 2















SA-46

-------
Grant Title


Radon







Water Pollution
Control Agency
Resource
Supplementation









Nonpoint Source
(NFS)








Wetlands
Program
Development







Statutory
Authorities

Toxic
Substances
Control Act,
Sections 1 0 and
306; TCA in
annual
Appropriations
Acts.
FWPCA, as
amended, § 1 06;
TCA in annual
Appropriations
Acts.







•
FWPCA, as
amended,
§ 319(h); TCA
in annual
Appropriations
Acts.




FWPCA. as
amended,
§104(b)(3);
TCA in annual
Appropriations'
Acts.




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-Profit
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 2002
Enacted

$8,139.9







$192,476.9












$237,476.8






r-


$14.967.0









FY 2003
Request

$8,139.9







$180376.9












$238,476.8









$14,967.0









FY 2003
Goal/
Objective
Goal 4,
Obj. 4






Goal 2,
Obj. 2











Goal 2,
Obj. 3








Goal 2,
Obj. 2








SA-47

-------
Grant Title


Water Quality
Cooperative
Agreements











Public Water
System
Supervision
(PWSS)








Public Water
System
Supervision
(PWSS) -
Homeland
Security


Underground
Injection Control
[UIC]








Statutory
Authorities

FWPCA. as
amended.
•§104(b)(3);TCA
in annual
Appropriations
Acts.








Safe Drinking
Water Act,
§1443(a);TCA
in annual
Appropriations
Acts.






Safe Drinking
Water Act,
§1443(a);TCA
in annual
Appropriations
Acts.


Safe Drinking
Water Act, §
1443(b);TCAjn
annual
Appropriations
Acts.





Eligible
Recipients*

States. Local
Governments,
Tribes, Non-
Profit
Organizations,
Intertribal
Consortia, and
Interstate
Organizations





States. Tribes,
and Intertribal
Consortia









States, Tribes,
and Intertribal
Consortia





States, Tribes,
Intertribal
Consortia








Eligible Uses


Creation of
unique and
innovative
approaches to
pollution control
and prevention
requirements
associated with
wet weather
activities, AFOs.
TMDLs, source
water protection,
and targeted
watersheds.
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.
Counterterrorism
coordinators to
work with EPA
and drinking
water utilities in
assessing
drinking water
safety.
Implement and •
enforce
regulations that
protect
underground
sources of
drinking water
by controlling
Class I-V
underground
injection wells.
FY 2002
Enacted

$18,958,2













$93.100,2











$5,000.0







$10.950.9










FY 2003
Request

$38,958.2













$93,100,2











$5,000.0







$10,950.9










FY 2003
Goal/
Objective
Goal 2.
Obj. 2












Goal 2. Obj.1











Goal 2.
Obj. 1






Goal 2,
Obj. 1









SA-48

-------
Grant Title


Beaches Grants













Hazardous
Waste Financial
Assistance'








Brownfields















Underground
Storage Tanks
[UST]









Statutory
Authorities

Beaches
Environmental
Assessment and
Coastal Health
Act of 2000;
TCA in annual
Appropriations
Acts.






Resource
Conservation
Recovery Act,
§3011;
FY 1999
Appropriations
Act (PL 105-
276); TCA in
annual '
Appropriations
. Acts.
Comprehensive
Environmental
Response,
Compensation
and Liability Act
of 1980, as
amended,
Section 128








Resource
Conservation
Recovery Act
Sections 8001
and 2007(f) and
FY1999
Appropriations
Act (PL 105-
276); TCA in
annual
Appropriations
Acts.
Eligible
Recipients*

States, Tribes,
Intertribal
Consortia, Local
Governments










States, Tribes,
Intertribal
Consortia








States, Tribes,
Intertribal
Consortia













State, Tribes and
Intertribal
Consortia









Eligible Uses


Develop and
implement
programs for
monitoring and
notification of
conditions for
coastal
recreation waters
adjacent to
beaches or
similar points of
access that are
used by the
public.
Development &
Implementation
ofHazardous
Waste Programs







Build and
support
Brownfields
programs which
will assess
contaminated
properties,
oversee private
party cleanups.
provide cleanup
support through
low interest
loans, and
provide certainty
for liability
related issues.
Demonstration
Grants,
Surveys and
Training;
Develop &.
implement UST
program





FY 2002
Enacted

$10,000.0













$106,363.6










$0.0















$11,918.4











FY2003
Request

$10,000.0













$106,363.6










$50,000.0















$11,918.4











FY2003
Goal/
Objective
Goal 2,
Obj. 1












Goal 4,
Obj. 5
Goal 5, Obj. 1&
2
Goal 9,
Obj. 1





Goal 5,
Obj. 1














Goal 5, Obj.2











SA-49

-------
Grant Title


Pesticides
Program
Implementation


































Lead












Statutory
Authorities

The Federal
Insecticide,
Fungicide, and
Rodenticide Act
§ 20 & 23: the
FY 1999
Appropriations
Act (PL 105-
276); FY 2000
Appropriations
Act (P.L. 106-
74); TCA in
annual
Appropriations
Acts.






•















Toxic
Substances
Control Act,
§ 404 (g):
TSCA 10;
FY2000
Appropriations
Act(P.L. 106-
74); TCA in
annual •
Appropriations
Acts.

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
training 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.
FY 2002
Enacted

$13.085.5























•





it.






$13,682.0 •












FY 2003
Request

$13,085.5




































$13,682.0












FY 2003
Goal/
Objective
Goal 4,
Obj. 1



































Goal 4,
Obj. 2











SA-50

-------
Grant Title


Toxic
Substances
Compliance
Monitoring**





Pesticide
Enforcement







Information
Integration

































Statutory
Authorities

Toxic
Substances
Control Act,
§28(a) and 404
(g); TCA in
annual
Appropriations
Acts.

FIFRA
§23(a)(l);FY
2000
•Appropriations
Act (P.L. 106-
74); TCA in
annual
Appropriations
Acts.
As appropriate,
Clean Air Act,
Sec. 103; Clean
Water Act, Sec.
104; Solid Waste
Disposal Act
Sec. 8001;
FIFRA. Sec 20;
TSCA, Sec. 10
and 28; Marine
Protection,
Research and
Sanctuaries Act,
Sec. 203; Safe
Drinking Water
Act, Sec, 1442:
Indian
Environmental
General
Assistance
Program Act of
1992, as
amended: FY
2000
Appropriations
Act (P.L. 106-
74); Pollution
Prevention Act,
Sec. 6605; FY
2002
Appropriations
Act and FY
2003
Appropriations
Acts.
Eligible
Recipients*

States,
Territories,
Tribes,
Intertribal
Consortia




States,
Territories,
Tribes,
Intertribal
Consortia




States, tribes.
interstate
agencies, tribal
consortium, and »
other agencies
with related
environmental
information
activities.


























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



Assists states
and others to
better integrate
environmental
information
systems, better
enable data-
sharing across
programs, and
improve access
to information.
























FY 2002
Enacted

$5,138.8








$19,867.8








$25,000.0


































FY2003
Request

$5,138.8








$19,867.8








$25,000.0


































FY2003
Goal/
Objective
Goal 9,
Obj, 1







Goal 9,
Obj. 1







Goal 7 •
Obj. 1

































SA-51

-------
Grant Title


Pollution
Prevention












Enforcement &
Compliance
Assurance?*



























Statutory
Authorities

Pollution
Prevention Act
of 1990, §6605:
TSCA 10:
FY2000
Appropriations
Act (P.L.I 06-
74); TCA in
annual
Appropriations
Acts.



As appropriate.
Clean Air Act,
Sec. 103; Clean
Water Act. Sec.
1 04; Solid Waste
Disposal Act,
Sec. 8001;
FIFRA. Sec 20:
TSCA, Sec. 10
and 28; Marine
Protection,
Research and
Sanctuaries Act.
Sec. 203; Safe
Drinking Water
Act, Sec. 1442;
Indian
Environmental
General
Assistance
Program Act of
1992. as
amended; FY
2000
Appropriations
Act(P.L. 106-
74): TCA in
annual
Appropriations
Acts.
Eligible
Recipients*

States. Tribes,
Intertribal
Consort ia











State.
Territories,
Tribes,
Intertribal
Consortia.
Multi-
jurisdictional
Organizations






















Eligible Uses


To assist state
and tribal
programs to
promote the use
of source
reduction
techniques by
businesses and
to promote other
Pollution
Prevention
activities at the
state and tribal
levels.
Assist in
developing
.innovative
sector-based.
multi-media, or
single-media
approaches to
enforcement and
compliance
assurance




















FY 2002
Enacted

$5.986.3













$2,209.3





























FY 2003
Request

$5,986.3













$2,209.3





























FY 2003
Goal/
Objective
Goal 4,
Obj. 5












Goal 9,
Obj.2




























SA-52

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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
in annual
Appropriations
Acts.
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.

FY 2002
Enacted
$0






$52,469.7


FY 2003
Request
$15,000.0






$57,469.7


FY 2003
Goal/
Objective
Goal 9,
Obj, 1






Goal 4,
Obj 7


* The Recipients listed in this column reflect assumptions in the FY 2003 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 2.]
                                                SA-53

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                         WORKING CAPITAL FUND

      In FY 2003, the Agency begins its seventh 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 FY 1997 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 FY 1997 will continue into FY 2003. These are
the Agency's computer center and  telecommunications  operations,  managed  by the
Office of Technology Operations and Planning (OTOP), and Agency postage costs,
managed by the Office of Administration.  The Agency's  FY  2003 budget  request
includes  resources for these two  activities  in  each. National  Program Manager's
submission, totaling approximately $132.0 million. These estimated resources may be
increased to  incorporate program  office's additional service needs during the operating
year.  To the extent  that these increases are  subject  to  Congressional reprogramming
notifications, the Agency will comply with all applicable requirements.
                                   SA-54

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