United States         OfficeOI            EPA 205-R-00-001
            Environmental Protection     Chief Financial Officer       February 2000
            Agency           (2732)
&EPA   Fiscal Year 2001
    Justification Of Appropriations
    Estimates For The Committees
          On Appropriations
   Recycled/Recyclable • Printed with Vegetable Based Inks on Recycled Paper (20% Postconsumer)

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Introduction/Overview

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Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Introduction and Overview
        EPA's Mission and Purpose	  i-1
        Goals 	  i-2
        Organization of the Annual Plan	i-4
        Annual Plan Overview	:. i- 9

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                              EPA's Mission and Purpose

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 purpose is to ensure that:

•      All Americans are protected from significant risks to human health and the environment
       where they live, learn, and work,

•      National efforts to reduce environmental risk are  based on the best available scientific
       information.

•      Federal laws protecting human health and the environment are enforced fairly and
       effectively,

»      Environmental protection is an integral consideration in U.S. policies concerning natural
       resources, human health, economic growth, energy, transportation, agriculture, industry, and
       international trade, and these factors are similarly considered in establishing environmental
       policy.

•      All parts of society ™ communities, individuals, business, state and local governments, and
       tribal governments — have access to accurate information sufficient to effect! vely participate
       in managing human health and environmental risks.

•      Environmental protection contributes to making our communities and ecosystems diverse,
       sustainable, and economically productive.

•      The United States plays a leadership role in working with other nations to protect the global
       environment

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                                     EPA's Goals

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

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

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

•      Safe Food: The foods Americans eat will be free from unsafe pesticide residues. Children
       especially will be protected from the health threats posed by pesticide residues, because they
       are among the most vulnerable groups in our society.

•      Preventing Pollution and Reducing Risk in Communities,  Homes, Workplaces and
       Ecosystems: Pollution prevention and risk management strategies aimed at cost-effectively
       eliminating, reducing, or minimizing emissions and contamination will result hi 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  to the  natural environment.  EPA will work to clean up previously
       polluted sites, restoring them to uses appropriate for surrounding communities, and respond
       to and prevent waste-related or industrial accidents.

•      Reduction of Global and Cross-Border Environmental Risks: The United States will
       lead other nations hi successful, multilateral efforts to reduce  significant risks to human
       health and ecosystems from climate change, stratospheric ozone depletion, and other hazards
       of international concern.
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Expansion of Americans' Right to Know About Their Environment: Easy access to a
wealth of information about the state of their  local environment will expand  citizen
involvement and give people tools to protect their families and their communities as they see
fit. Increased information exchange between scientists, public health officials, businesses,
citizens, and all levels of government will foster greater knowledge about the environment
and what can be done to protect it

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 establish a management infrastructure that will  set and
implement the highest quality standards  for effective internal management  and fiscal
responsibility.
                                   i-3

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      Organization of the Annual Performance Plan and Congressional Justification
                The Agency's Commitment to Link Planning and Budgeting

       The Agency's approach to annual planning under the Government Performance and Results
Act (GPRA) is based on a full integration of strategic planning, annual planning, budgeting, and
accountability. The organization of EPA's FY 2001 Annual Plan and Congressional Justification
reflects the Agency's  continuing commitment to link planning and budgeting in a coherent,
integrated process.  The Agency for the third year presents its Budget and Annual Plan as  an
integrated document.

       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 five-year Strategic Plan. As a result, the budget promotes fiscal accountability
through a direct connection between resources and outcomes.

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 Congressional Justification Organization:

Resource  Tables

       The resource tables provide a broad overview of the resources that the Agency is requesting
for FY 2001 by Goal, Objective, and Appropriation. (The dollar amounts in these and other tables
may not add due to independent rounding.)

Goal Chapters include:

•      Background and Context:  Sets the broad context for the Goal and briefly explains why the
       Goal is of National importance.
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•      Resource Summary: Provides a broad overview of the resources for FY 2001 by Goal,
       Objective, and Appropriation.

•      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 2001 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

*      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.

•      FY 2001 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 2001 Change from FY 2000 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 Obj ectives. 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
                                          i-5

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      results. This Annual Plan lists performance information for three years: actual results for F Y
      1999, and Annual Performance Goals for FY 2000 and FY 2001.

      The FY 2000 Annual Performance Goals included in the FY 2001 Annual Plan and Budget
      may have changed from those included in the F Y 2000 Annual Plan submitted to Congress
      in February 1999. These changes are due to:

      •      Congressional action that has materially affected the FY 2000 President's Budget;

      •      comments received by the Agency on the annual performance goals and measures
             contained in the FY 2000 President's Budget; and

      •      the need to show  FY 2000 performance estimates  as context for new annual
             performance goals and measures established for FY 2001.

•     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 Peformance Measure data
      for three years.

•     Verification and Validation of Performance Measures: This section describes how the
      Performance Measures 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.

Special Analyses

      This final section of the Annual Plan and Budget includes:

•     Government-wide Annual  Performance Goals  for FY 2001:  Selected  Annual
      Performance Goals proposed for inclusion hi the Government-wide Performance Plan for FY
      2001

•     Annual Performance Plan Components:  This section of the Annual Plan and Budget
      describes the relationship between the Budget and Annual Plan.
                                         i-6

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       Major Management Issues: This section 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.

*      Summary of Key Programs: Reports totals for Agency Key Programs, across Goals and
       Objectives.

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

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

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

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

•      Cost Allocation:  In the FY 2001 Annual Plan/Congressional Justification, FY 2000 Enacted
       and FY 2001 requested levels reflect a realignment of resources from Agency Management
       to the agency's other strategic goals where there is a readily identifiable cost that clearly
       contributes to  the achievement of those goals. The Cost Allocation  section explains this
       realignment in detail.

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

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 1997.

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 2001 in this Annual Performance  Plan are based upon the
resource levels in the Agency' s F Y 2001 budget request levels. However, r-esources may contribute
not only to the budget year's Annual Performance Goals but also to the accomplishment of Goals
                                          i-7

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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 2001 activities will contribute to completion of work in FY 2001 or beyond. Likewise, some
FY 2001 Annual Performance Goals are achievable only with funding provided in prior years.

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

Use of Non-Federal Parties in Preparing this Annual Plan

       The Annual Plan was prepared in conformance with section 220.6(c) of OMB Circular A-l 1,
concerning the role of non-Federal parties in preparing the Annual Plan.
                                          i-8

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                           Annual Plan and Budget Overview

       The Environmental Protection Agency's FY 2001 Annual Plan and budget request of $7.257
billion in discretionary budget authority, and 18,050 Full Time Equivalencies (FTE), builds on our
commitment to protect the environment and public health with common-sense programs that
promote environmental health while sustaining economic growth.  This budget request maintains
the Administration's dedication to ensure that the air, water, and land are safe and healthy, and that
the American public has the health protections they need and deserve.

Cleaning America's Water

       Over the past three decades, our Nation has made significant progress in water pollution
prevention and cleanup. WMle we have substantially cleaned 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.

Great Lakes Initiative

       The Great Lakes, our Nation's most significant and beautiful water resources, will receive
$50 million in the President's Budget for a new initiative that will continue the progress we have
made in their cleanup and restoration. Through this initiative, states and municipalities will be
eligible to compete for grants to improve  water quality through stormwater pollution control,
wetlands restoration and contaminated sediment remediation at identified "areas of concern." State
or local governments will be required to provide at least 40 percent of total project costs.

Helping States Ensure Clean Water. Address Run-off

       For water, the President's FY 2001  Budget bolsters the successes we have achieved by
providing $250 million .in grants, a $50 million increase,  to address polluted runoff, which is
currently the largest threat to our Nation's water quality.

Helping States Restore Polluted Waters

       This budget request strengthens our efforts to identify and restore polluted waterways with
$161  million in Pollution  Control  (Section 106) grants, a $45 million increase over FY 2000,
specifically targeted to help states develop pollution allocation and implementation plans (known
as Total Maximum Daily Loads - TMDLs) for some 20,000 waterways across the Nation. States
would be required to provide at least 40 percent of TMDL program costs.
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Clean Water State Revolving Fund

       This budget request includes $800 million for the Clean Water State Revolving Fund
(CWSRF). This investment keeps EPA on track with our commitment to meet the goal for the
CWSRF to provide an average of $2.0 billion in annual financial assistance. Indeed, the President's
Budget calls for cumulative additional capitalization of $3.2 billion in fiscal years 2002-2005, which
will enable the program to exceed the Administration commitment. Over $17 billion has already
been provided to capitalize the CWSRF, more than twice the original Clean Water Act authorized
level of $8.4 billion.  Total SRF funds available for loans since 1987, reflecting loan repayments,
state match dollars, and other sources of funding, are approximately $30 billion, of which $26 billion
having been provided to communities as financial assistance ($4.2 billion was available for loans
as of June 1999).

Drinking Water State Revolving Fund

       The Drinking Water State Revolving Fund (DWSRF) request of $825 million keeps the
Administration  on track to  provide  an average of $500 million  a  year to states and tribes to
modernize drinking water systems.

U.S/Mexico Border

       This request includes $ 100 million for water and wastewater projects along the U.S./Mexico
Border. With these resources, the Agency provides grant assistance to address the environmental
and public health problems associated with untreated industrial and municipal sewage on the border.

Legislative Proposals

       This budget request includes three legislative proposals that would provide states with
flexibility in operating their CWSRFs, as well as demonstrating the Administration's longstanding
commitment to protect public health  and the environment on tribal lands.

*      19% Set-Aside: The Agency proposes to allow states to reserve up to 19% of their CWSRF
       capitalization grants to address polluted runoff through grants of no more than 60% of the
       costs of implementing nonpointsource and estuary management proj ects. This set-aside will
       provide states with flexibility to help address the leading cause of water pollution — polluted
       runoff.

•      Tribal Wastewater Grants: To improve public health and water quality in Indian Country,
       the Agency proposes to increase the percentage of CWSRF funds  reserved for wastewater
       grants to tribes from 0.5  percent  to 1.5 percent for FY 2001  and beyond.  This will
       substantially increase the amount of funds available to tribes for wastewater treatmentproject
       grants.
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•      Tribal Nonpoint Source Grants:  In this budget request, the Agency is proposing to
       permanently eliminate the statutory one-third-of-one-percent cap on Clean Water Act Section
       319 Nonpoint Source Pollution grants that may be awarded to tribes. Congress eliminated
       the cap for fiscal year 2000 only. Tribes applying for and receiving Section 319 grants have
       steadily  increased from two in 1991 to elevan in  1999. Twenty-two tribes have met the
       eligibility requirements  to receive Section 319  grants.   This proposal recognizes  the
       increasing demand on the limited pool of Section 319 grant funds for Tribal nonpoint source
       program needs.

Cleaning America's Air

Clean Air Partnership Fund

       One of the Administration's most important public health commitments is to improve the air
that Americans breathe. Over one-third of Americans still live in areas where the air does not meet
the new air quality standards. The FY 2001 budget request includes $85 million for the Clean Air
Partnership Fund. This initiative will foster public-private partnerships to help communities achieve
their own clean air goals in ways that make the best sense for them.

       The Clean Air Partnership Fund will:

       »     be a catalyst for innovative  local., state, and private partnerships for air pollution
             reductions;
       •     demonstrate locally managed, self-supporting programs that achieve early integrated
             reductions in soot, smog, air toxics, and greenhouse gases;
       •     be used to capitalize local revolving  funds and other financial mechanisms that
             leverage the original federal investment  and  result in greater resources  for air
             pollution reduction; and
       •     stimulate.technology innovation.

       The Clean Air Partnership Fund will fund more optimal, multi-pollutant control strategies.
Currently, businesses and  municipalities  often invest in short-term,  single-pollutant control
approaches. The Partnership will encourage  many industries, such as electric utilities and the
transportation sector, to pursue comprehensive criteria pollutant reductions while improving energy
and operational efficiencies, thereby also reducing greenhouse gas emissions.

Air Grants to States and Tribes

       This budget provides $222.9 million in state and tribal air grants. Of these resources, $5
million will be  for state, tribal,  and regional planning bodies to implement programs to address
regional haze and integrate those programs with approaches to reducing ozone and fine participate
matter.
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Meeting the Climate Change Challenge

       This budget request of $227.3 million for EPA's portion of the Climate Change Technology
Initiative (CCTI) continues the Administration's commitment, through this multi-Agency program,
to address the significant threat that global warming poses to public health and the environment.
This investment will reduce greenhouse gas emissions through investments in  energy efficient
technologies, as well as partnerships with businesses, schools, state and local governments, and other
organizations. This initiative promotes voluntary measuresand common-senseapproaches to reduce
energy use and energy bills for consumers and businesses while protecting the global environment
for future generations.

Protecting our Children

       The Administration remains dedicated to providing children with the health protections they
need through for the Children's Health Initiative, which is funded in FY 2001 at over $67 million.
Children are among the most vulnerable members of our society, and prolonged exposure to toxins
in our environment increases the risks to their health. Through the Children's Health Initiative, the
Agency supports research to develop a better understanding of children's vulnerabilities and improve
its ability to assess their health risks. The Agency also focuses on children's exposure to toxins in
the environment.  The budget continues to support the FY 2000 Children's Asthma Initiative and
an interagency FY 2001 Children's Lead Poisoning Initiative.

Providing for Communities

Promoting Smart Growth through Better America Bonds

       To better protect America's communities, the Administration is again proposing Better
America Bonds that states, tribes, and local governments can use to preserve open space, protect
water quality, and clean up abandoned industrial sites. Through this initiative, the Administration
will provide the authority to issue $2.15 billion in bonds to state, local, and tribal governments in
2001.

Creating a New Source of Environmental Information: The Information Integration Initiative

       This Administration has made a commitment to empower the public with environmental
information on toxic  releases in their communities.  This information is a powerful tool for the
public to take action to ensure that their local environment is safe and healthy. This budget request
expands on the public's right to know about their environment with the Information Integration
Initiative.  This Initiative will provide $30 million for the Agency to work with the  states to develop
and make public integrated environmental data, providing the public with an unprecedented level
of integrated information on local environments across the Nation.
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Cleaning Up Toxic Waste

Keeping Superfund Working — Fair, Fast and Cost-Effective

       This budget continues a commitment to clean up toxic waste sites with a request of $1.45
billion for Superfimd cleanups.   Funding will provide resources to mitigate the  effects  of
uncontrolled releases on local populations and sensitive environments. This budget request keeps
us on track with Superfund site cleanups. Currently, 91% of the 1,412 final sites on the Superfund
National Priorities List (NPL) are either undergoing cleanup construction (remedial or removal) or
are completed. Combined with continuing administrative reforms, these funds will help meet me
President's goal of 900 clean up completions by FY 2002.

Expanding Brownfields to Revitalize Local Economies and Create Jobs

       The FY 2001 budget request of nearly $92 million for the Brownfields initiative will
continue to promote local cleanup and redevelopment of industrial sites, returning abandoned land
to productive use and bringing jobs to blighted areas. This budget request provides funding for
technical assistance and grants to communities for site assessment, redevelopment planning,, and job
training, as well as revolving loan funds to finance clean up efforts at the local level. Through FY
2001, EPA will have funded Brownfields site assessment pilots in more than 350 communities.

Sound Science

       Achieving maximum environmental and health protections requires employing the best
methods, models, tools, and approaches to implement a very demanding environmental agenda.
This budget request includes $674 million to develop and apply sound science to address both
current and future environmental challenges. The budget request describes a balanced research and
development program designed  to meet  the science  challenges  of administering environmental
legislation such as the Clean Air Act (CAA), the Safe Drinking Water Act (SDWA), the Federal
Insecticide, Fungicide, and Rodenticide Act (FIFRA), the Food Quality Protection Act (FQPA), and
others, and addressing Administration and Agency priorities.

Strengthening Tribal Partnerships

       This budget request includes $53 million for the Indian Environmental General Assistance
Program (GAP) grants to allow virtually every Tribe in the United States to have one or more people
working in their community to build a strong, sustainable environment for the future. This request
will support vital work by assessing the status of a Tribe's environmental condition and developing
the infrastructure for an environmental program tailored to that Tribe's needs.  In addition to
developing, for example, the environmental education programs and solid waste management plans
needed in almost every Tribal community, a key role of these personnel 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.
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Food Quality Protection Act (FQPA)

       The FY 2001 request includes $74.5 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 hi 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 enhances FQPA-
related science through scientific assessments of cumulative risk, including funds for validation of
testing components of the Endocrine Disrupter Screening Program.

Summary

       The Environmental Protection Agency' s F Y 2001 Annual Plan and Budget Request supports
innovative, common-sense, cost-effective programs to ensure a healthy environment and healthy
communities for the 21st Century.  To accomplish our mission, we will continue to strengthen our
partnerships with  States, Tribes, local communities, and other stakeholders. This budget request
builds on the environmental progress of the Administration, and provides the American public with
the environmental and health protections they need and deserve.
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Resource Tables

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Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Resource Tables
       Resources by Appropriation	RT-1
       Resources by Goal/Appropriation	  RT-4
       Resources by Goal/Objective		.	,	RT-13

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                    ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                              Appropriation Summary

                                Budget Authority
                              Full-Time Equivalency
                               (dollars in thousands)
Building and Facilities
   Budget Authority
   Full-Time equivalents (FTE)

Envir. Program & Mgmt - Reim
   Budget Authority
   Full-Time equivalents (FTE)

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

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

Inspector General
   Budget Authority
   Full-Time equivalents (FTE)

Leaking Underpound Storage Tanks
   Budget Authority
   Full-Time equivalents (FTE)

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

Rereg. & Exped. Proc. Rev Fund
                                            FY1999     FY2000     FY2001
                                           ENACTED   ENACTED  PRES BUD
   $56,948.0    $62,362.1    $23,930.5
        0.0         0.0          0.0
       $0.0
       12.5
     $0.0
      1.5
     $0.0
      1.5
$1,846,700.0 $1,895,266.6  $2,099,460.8
    11,469.9     11,231.7     11,224.4
$1,447,762.9 $1,351,000,0  $1,450,000.0
     3,373.6      3,279.3      3,465.0
   $43,391.0    $43,379.7    $34,094.4
      377.0       374.3        276.5
   $72,500.0
       86.3
   $15,000.0
      103.6
$69,759.8
     82.3
$14,974.4
    102.6
$72,096.5
     81.9
$15,712.0
    101.9
                                     RT-1

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                   ENVIRONMENTAL PROTECTION AGENCY

    FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                            Appropriation Summary

                               Budget Authority
                             Full-Time Equivalency
                              (dollars in thousands)
                                           FY 1999     FY 2000     FY 2001
                                          ENACTED   ENACTED   PRES BUD
Budget Authority
Full-Time equivalents (FTE)
Science & Technology
Budget Authority
Full-Time equivalents (FTE)
Science and Tech. - Reim
Budget Authority
Full-Time equivalents (FTE)
$0.0
222.4
$700,000.0
2,553.0
$0.0
24.9
$0.0
222.4
$680,302.8
2,584.6
$0.0
12.3
$0.0
220.9
$674,347.6
2,464.3
$0.0
6.0
State and Tribal Assistance Grants
   Budget Authority
   Full-Tune equivalents (FTE)

Superfund Reimbursables
   Budget Authority
   Full-Tune equivalents (FTE)

Working Capital Fund - Reimb
   Budget Authority
   Full-Time equivalents (FTE)

Y2K Supplemental (Transfer BA)
   Environmental Programs & Management
   Science & Technology
   Hazardous Substance Superfund

      Total Supplemental (BA)
$3,408,050.0  $3,445,765.3  $2,906,957.0
        0.0
       $0.0
       143.0
       $0.0
        0.0
   $2,950.0
     $671.5
      $73.5

   $3,695.0
  0.0
 $0.0
115.0
 $0.0
 94.0
  0.0
 $0.0
114.2
 $0.0
 93.4
                                    RT-2

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                  ENVIRONMENTAL PROTECTION AGENCY

    FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                           Appropriation Summary

                             Budget Authority
                           Full-Time Equivalency
                            (dollars in thousands)
                                         FY1999     FY2000    FY2001
                                       ENACTED   ENACTED  PRESBUD
Total, EPA APPROPRIATIONS
   Budget Authority
   Full-Time equivalents (FTE)

Fees
$7,590,351.9 $7,562,810.7 $7,276,598.8
   18,366.2     18,100.0     18,050.0
                       ($20,000.0)
ENVIRONMENTAL PROTECTION AGENCY (NET)
   Budget Authority
   Full-Time equivalents (FTE)
$7,594,046.9 $7,562,810.7 $7,256,598.8
   18,366.2     18,100.0     18,050.0
                                  RT-3

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                   ENVIRONMENTAL PROTECTION AGENCY

    FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                          Goal Appropriation Summary

                              Budget Authority
                            Full-Time Equivalency
                             (dollars in thousands)
                                          FY1999     FY2000    FY2001
                                         ENACTED   ENACTED  PRESBUD
Clean Air
Budget Authority
Full-Time equivalents (FTE)
Environmental Program & Management
Budget Authority
Full-Time equivalents (FTE)
Science & Technology
Budget Authority
Full-Time equivalents (FTE)
State and Tribal Assistance Grants
Budget Authority
Full-Time equivalents (FTE)
Oil Spill Response
Budget Authority
Full-Time equivalents (FTE)
$535,284.5
1,751.4
$156,926.0
1,130.4
$171,755.7
621.0
$206,601.8
0.0
$1.0
0.00
$540,965.5
1,857.9
$175,438.0
1,185.9
$155,768.7
672.0
$209,758.8
0.0
$0.0
0.0
$647,514.2
1,856.6
$190,374.0
1,180.8
$157,381.4
675.8
$299,758.8
0.0
$0.0
0.0
Clean and Safe Water
   Budget Authority                          $3,424,511.4 $3,491,587.3  $2,754,826.5
   Full-Time equivalents (FTE)                     2,610.3     2,722.8      2,672.7

   Environmental Program & Management
      Budget Authority                        $413,672.7  $438,372.8   $412,561.6
      Full-Time equivalents (FTE)                  2,227.4     2,254.9      2,211.4

   Science & Technology
      Budget Authority                         $78,978.9   $88,639.4    $90,455.1

                                   RT-4

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                    ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                            Goal Appropriation Summary

                                 Budget Authority
                               Full-Time Equivalency
                               (dollars in thousands)
                                             FY1999     FY2000     FY2001
	,	ENACTED  ENACTED   PRES BUD

      Full-Time equivalents (FTE)                     382.9        467.9        461.3

   Stole and Tribal Assistance Grants
      Budget Authority                       $2,931,859.8  $2,964,575.1  $2,251,809.8
      Full-Time equivalents (FTE)                       0.0          0.0          0.0

Safe Food
   Budget Authority                            $67,647,70   $82,285.20     $86,056.5
   Full-Time equivalents (FTE)                       702.40       701.00        711.8

   Environmental Program & Management
      Budget Authority                        $56,975.80   $70,856.00     $72,165.7
      Full-Time equivalents (FTE)                    440.60       429.50        436.6

   Science & Technology
      Budget Authority                          $10,671.9    $11,429.2     $13,890.8
   Full-Time equivalents (FTE)                         39.4         49.1         54.3

   Rereg. & Exped. Proc, Rev Fund
      Budget Authority                               $0.0         $0.0         $0.0
      Full-Time equivalents (FTE)                     222.4        222.4        220.9

Preventing Pollution and Reducing Risk in Communities,
Homes, Workplaces and Ecosystems
   Budget Authority                             $237,990.3   $277,597.3    $301,046.3
   Full-Time equivalents (FTE)                      1,118.9       1,176.1       1,186.5

   Environmental Program & Management
      Budget Authority                         $134,350.5   $169,583.4    $182,052.3
      Full-Time equivalents (FTE)                   1,010.6       1,019.8       1,011.1

                                     RT_5

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                    ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                            Goal Appropriation Summary

                                Budget Authority
                              Full-Time Equivalency
                               (dollars in thousands)
                                             FY1999     FY2000     FY2001
                                            ENACTED  ENACTED  PRES BUD
   Science & Technology
      Budget Authority                          $16,997.2    $21,328.2    $22,351.3
      Full-Time equivalents (FTE)                    108.3        156.3        175.4

   State and Tribal Assistance Grants
      Budget Authority                          $86,642.6    $86,685.7    $96,642.7
      Full-Time equivalents (FTE)                      0.0          0.0          0.0

Better Waste Management, Restoration of Contaminated Waste
Sites, and Emergency Response
   Budget Authority                           $1,673,339.5  $1,622,372.6  $1,679,847.6
   Full-Time equivalents (FTE)                       4,514.0      4,455.4      4,402.3

   Environmental Program & Management
      Budget Authority                         $137,336.9   $153,129.8   $164,398.8
      Full-Time equivalents (FTE)                   1,002.2      1,049.0      1,037.1

   Envir. Program & Mgmt - Reim
      Budget Authority                              $0.0         $0.0         $0.0
      Full-Time equivalents (FTE)                     11.0          0.0          0.0

   Science & Technology
      Budget Authority                          $64,128.5    $57,723.0    $16,823.1
      Full-Time equivalents (FTE)                    211.3        221.0         90.6

   Science and Tech. - Reim
      Budget Authority                              $0.0         $0.0         $0.0
      Full-Time equivalents (FTE)                     24.9         12.3          6.0
                                     RT-6

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                   ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                           Goal Appropriation Summary

                                Budget Authority
                              Full-Time Equivalency
                              (dollars in thousands)
                                            FY 1999     FY 2000     FY 2001
                                           ENACTED  ENACTED  PRESBUD
State and Tribal Assistance Grants
Budget Authority
Full-Time equivalents (FTE)
Leaking Underground Storage Tanks
Budget Authority
Full-Time equivalents (FTE)
Oil Spill Response
Budget Authority
Full-Time equivalents (FTE)

$62,847.2
0.0

$70,391.7
73.4

$14,334.8
103.6

$64,247.2
0,0

$67,393.6
71.8

$14,446.8
102.6

$72,247.2
0.0

$69,832.7
71.0

$15,167.9
101.9
   Hazardous Substance Supertund
      Budget Authority                       $1,324,300.4 $1,265,432.2  $1,341,377.9
      Full-Time equivalents (FTE)                   2,944.6      2,883.7      2,981.5

   Superfund Reimbursables
      Budget Authority                              $0.0        $0.0         $0.0
      Full-Time equivalents (FTE)                     143.0        115.0        114.2

Reduction of Global and Cross-border Environmental Risks
   Budget Authority                            $229,273.8   $237,865.8   $425,070.5
   Full-Time equivalents (FTE)                        526.9        511.7        533.1

   Environmental Program & Management
      Budget Authority                         $126,352.7   $139,228.6   $249,255.2
      Full-Time equivalents (FTE)                     423.4        414.2        432.2

   Science & Technology
      Budget Authority                          $52,921.1    $48,637.2    $75,815.3

                                     RT-7

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            ENVIRONMENTAL PROTECTION AGENCY

FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                   Goal Appropriation Summary

                      Budget Authority
                     Full-Time Equivalency
                     (dollars in thousands)
                                 FY 1999    FY 2000    FY 2001
                                ENACTED  ENACTED . PRESBUP
Full-Time equivalents (FTE)
State and Tribal Assistance Grants
Budget Authority
Full-Time equivalents (FTE)
Oil Spill Response
Budget Authority
Full-Time equivalents (FTE)
Hazardous Substance Superfund
Budget Authority
Full-Time equivalents (FTE)
Expansion of Americans' Right to Know About their
Environment
Budget Authority
Full-Time equivalents (FTE)
Environmental Program & Management
Budget Authority
Full-Time equivalents (FTE)
Science & Technology
Budget Authority
Full-Time equivalents (FTE)
State and Tribal Assistance Grants
Budget Authority
Full-Time equivalents (FTE)
103.5
$50,000.0
0.0
$0.0
0.0
$0.0
0.0
$139,083.2
778.8
$125,123.6
730.4
$11,662.7
36.9
$0.0
0.0
97.5
$50,000.0
0.0
SO.O
0.0
$0.0
0.0
$159,640.1
818.4
$140,992.3
770.7
$15,043.3
38.6
$0.0
0.0
100.9
$100,000.0
0.0
$0.0
0.0
$0.0
0.0
$185,109.1
809.5
$150,873.6
759.9
$14,547.6
39.3
$16,000.0
0.0
                          RT-8

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             ENVIRONMENTAL PROTECTION AGENCY

FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                   Goal Appropriation Summary

                       Budget Authority
                     Full-Time Equivalency
                      (dollars in thousands)
                                 FY1999    FY2000    FY2001
                                ENACTED  ENACTED  PRES BUD
Hazardous Substance Superfund
Budget Authority
Full-Time equivalents (FTE)
$2,296.9
11.5
Sound Science, Improved Understanding of Env. Risk and
Greater Innovation to Address Env. Problems
Budget Authority $334,507.9
Full-Time equivalents (FTE) 1 ,200.7
Environmental Program & Management
Budget Authority
Full-Tune equivalents (FTE)
Science & Technology
Budget Authority
Full-Time equivalents (FTE)
Hazardous Substance Superfund
Budget Authority
Full-Time equivalents (FTE)
A Credible Deterrent to Pollution and Greater
with the Law
Budget Authority
Full-Time equivalents (FTE)
Environmental Program & Management
Budget Authority
Full-Time equivalents (FTE)
$54,824.1
228.7
$276,550.9
971.0
$3,132.9
1.0
Compliance
$322,088.2
2,587.8
$228,473.7
2,429.8
$3,604.5
9.1
$330,510.3
1,057.5
$64,160.0
252.0
$262,945.1
803.5
$3,405.2
2.0
$372,755.6
2,570.8
$275,748.3
' 2,388.0
$3,687.9
10.3
$328,757.7
1,048.6
$73,276.1
258.1
$250,714.5
788.5
$4,767.1
2.0
$403,771.5
2,572.7
$303,105.9
2,391.2
                           RT-9

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                    ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                            Goal Appropriation Summary

                                Budget Authority
                              Full-Time Equivalency
                               (dollars in thousands)
                                             FY 1999     FY 2000     FY 2001
                                            ENACTED   ENACTED  PRESBUD
   Science & Technology
      Budget Authority                           $8,583.9     $9,677.7    $10,631.7
      Full-Time equivalents (FTE)                     78.7        78.7         78.2

   State and Tribal Assistance Grants
      Budget Authority                          $70,098.6    $70,498.5    $70,498.5
      Full-Time equivalents (FTE) .                     0.0         0.0          0.0

   Hazardous Substance Superfund
      Budget Authority                          $14,932.0    $16,831.1    $19,535.4
      Full-Time equivalents (FTE)                     79.3        104.1        103.3

Effective Management
   Budget Authority                             $626,625.4   $447,231.0   $464,598.9
   Full-Time equivalents (FTE)                      2,575.0      2,228.4      2,256.2

   Environmental Program & Management
      Budget Authority                         $412,664.0   $267,757.4   $301,397.6
      Full-Time equivalents (FTE)                   1,846.4      1,467.7      1,506.0

   Envir. Program & Mgmt - Reim
      Budget Authority                              $0.0        $0.0         $0.0
      Full-Time equivalents (FTE)                      1.5         1.5          1.5

   Science & Technology
      Budget Authority                           $7,749.2     $9,111.0    $21,736.8
      Full-Time equivalents (FTE)                      0.0         0.0          0.0

   Building and Facilities

                                     RT-10

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                    ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                           Goal Appropriation Summary

                                Budget Authority
                              Full-Time Equivalency
                               (dollars in thousands)
                                             FY1999     FY2000     FY2001
                                           ENACTED  ENACTED. PRESBUD
      Budget Authority
      Full-Time equivalents (FTE)

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

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

   Inspector General
      Budget Authority
      Full-Time equivalents (FTE)

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

   Working Capital Fund - Reimb
      Budget Authority
      Full-Time equivalents (FTE)

Y2K Supplemental (Transfer BA)
   Environmental Program & Management
   Science & Technology
   Hazardous Substance Superfund

      Tota,! Supplemental (BA)
 $56,948.0    $62,362.1    $23,930.5
      0.0          0.0          0.0
  $2,108.3     $2,366.2     $2,263.8
      12.9         10.5         10.9
   $664.2       $527.6       $544.1
      0.0          0.0          0.0
 $43,391.0    $43,379.7    $34,094.4
    377.0        374.3        276.5
$103,100.7    $61,727.0    $80,631.7
    337.2        280.4        367.9
     $0.0
      0.0
  $2,950.0
   $671.5
    $73.5

  $3,695.0
$0.0
94.0
$0.0
93.4
                                    RT-11

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                                           FY1999     FY2000     FY2001
                                         ENACTED  ENACTED  PRES BUD
Total, EPA APPROPRIATIONS
   Budget Authority                          $7,590,351.9 $7,562,810.7  $7,276,598.8
   Full-Time equivalents (FTE)                    18,366.2     18,100.0     18,050.0

Fees                                                              ($20,000.0)

ENVIRONMENTAL PROTECTION AGENCY (NET)
   Budget Authority                          $7,594,046.9 $7,562,810.7  $7,256,598.8
   Full-Time equivalents (FTE)                    18,366.2     18,100.0     18,050.0
                                  RT-12

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               ENVIRONMENTAL PROTECTION AGENCY

 FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                        Goal Objective Summary

                           Budget Authority
                         Full-Time Equivalency
                          (dollars in thousands)
                                       FY1999    FY2000     FY2001
                                      ENACTED  ENACTED  PRES BUD
Clean Air
Budget Authority
Full-Time equivalents (FTE)
Attain NAAQS for Ozone and PM
Budget Authority
Full-Time equivalents (FTE)
Reduce Emissions of Air Toxics
Budget Authority
Full-Time equivalents (FTE)
Attain NAAQS for CO, SO2, NO2, Lead
Budget Authority
Full-Tune equivalents (FTE)
Acid Rain
Budget Authority
Full-Time equivalents (FTE)
Clean and Safe Water
Budget Authority
Full-Time equivalents (FTE)
Safe Drinking Water, Fish and Recreational
Budget Authority
Full-Time equivalents (FTE)
$535,284.5
1,751.4
$387,110.4
1,127.6
$89,966.2
371.5
$40,071.7
165.7
$18,136.2
86.6
$3,424,511.4
2,610.3
Waters
$1,088,104.5
845.4
$540,965.8
1,855.3
$382,106.3
1,191.3
$95,123.4
379.9
$44,103.4
194.2
$19,632.7
89.9
$3,491,588.6
2,718.7
$1,189,401.7
876.8
$647,514.2
1,856.6
$455,169.9
1,188,8
$132,939.4
385,6
$39,111.4
193.9
$20,293.5
88.3
$2,754,826.5
2,672.7
$1,099,270.9
869.4
Conserve and Enhance Nation's Waters
   Budget Authority
$355,049.8   $381,485.3   $438,783.0
                               RT-13

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                    ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                              Goal Objective Summary

                                 Budget Authority
                               Full-Time Equivalency
                                (dollars in thousands)
                                              FY1999     FY2000      FY2001
	,	,	ENACTED  ENACTED  PRES BUD
       Full-Time equivalents (FTE)                     901.8        964.3        948.9

   Reduce Loadings and Air Deposition
       Budget Authority                       $1,981,357.1  $1,920,701.6  $1,216,772.6
       Full-Time equivalents (FTE)                     863.1        877.6        854.4

Safe Food
   Budget Authority                             $67,647.7     $82,285.1     $86,056.5
   Full-Time equivalents (FTE)                        702.4        700.7        711.8

   Reduce Agricultural Pesticides Risk
       Budget Authority                          $29,333.2     $35,826.6     $39,057.3
       Full-Time equivalents (FTE)                     291,3        286.0        293.5

   Reduce Use on Food of Pesticides Not Meeting Standards
       Budget Authority                          $38,314.5     $46,458.5     $46,999.2
       Full-Time equivalents (FTE)                     411.1        414.7        418.3

Preventing Pollution and Reducing Risk in Communities,
Homes, Workplaces and Ecosystems
   Budget Authority                            $237,990.3   $277,597.3    $301,046.3
   Full-Time equivalents (FTE)                      1,118.9       1,175.5       1,186.5

   Reduce Public and Ecosystem Exposure to Pesticides
       Budget Authority                          $43,240.2     $51,892.3     $55,971.7
       Full-Time equivalents (FTE)                     230.2        231.9        234.6

   Reduce Lead Poisoning
       Budget Authority                          $30,722.7     $27,390.6     $28,213.9
       Full-Time equivalents (FTE)                     113.2         98.1         95.3
                                     RT-14

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                   ENVIRONMENTAL PROTECTION AGENCY

    FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                            Goal Objective Summary

                               Budget Authority
                             Full-Time Equivalency
                              (dollars in thousands)
                                           FY1999     FY2000     FY2001
                                          ENACTED  ENACTED   PRES BUD
Safe Handling and Use of Commercial Chemicals and Microorganisms
Budget Authority $42,868.2 $66,866.8
Full-Time equivalents (FTE) 340.9 43.5.4
Healthier Indoor Air
Budget Authority
Full-Time equivalents (FTE)
Improve Pollution Prevention Strategies, Tools,
Budget Authority
Full- Tune equivalents (FTE)
Decrease Quantity and Toxicity of Waste
Budget Authority
Full-Time equivalents (FTE)
Assess Conditions in Indian Country
Budget Authority
Full-Time equivalents (FTE)
$29,095.7
146.2
Approaches
$22,346.6
87.1
$17,561.2
120.6
$.52,155.7
80.7
$39,915.5
127.4
$23,649.5
93.2
$15,056.6
105.5
$52,826.0
84.0
$70,983.3
428.7
$41,159.0
144.0
$24,505.5
89.2
$16,016.6
107.3
$64,196.3
87.4
Better Waste Management, Restoration of
Contaminated Waste Sites, and Emergency Response
   Budget Authority                          $1,673,339.5  $1,622,372.6  $1,679,847.6
   Full-Time equivalents (FTE)                     4,514.0      4,448.7      4,402.3

   Reduce or Control Risks to Human Health
      Budget Authority                      $1,511,811.5  $1,451,859.3  $1,500,675.5
      Full-Time equivalents (FTE)                 3,656.8      3,546.1      3,529.5
                                   RT-15

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                 ENVIRONMENTAL PROTECTION AGENCY

  FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                          Goal Objective Summary

                             Budget Authority
                           Full-Time Equivalency
                            (dollars in thousands)
                                          FY1999      FY2000     FY2001
                                         ENACTED  ENACTED   PRESBUD
                                                       $170,513.3   $179,172.1
                                                           902.6        872.8
                                                       $237,865.9   $425,070.5
                                                           509.2        533.1
   Prevent, Reduce and Respond to Releases,
   Spills, Accidents or Emergencies
      Budget Authority                        $ 161,528.0
      Full-Time equivalents (FTE)                    857.2

Reduction of Global and Cross-border Environmental
Risks
   Budget Authority                            $229,273.8
   Full-Time equivalents (FTE)                        526.9

   Reduce Transboundary Threats: Shared North
   American Ecosystems
      Budget Authority                         $71,336.8
      Full-Time equivalents (FTE)                     85.9

   Climate Change
      Budget Authority                        $ 127,285.5
      Full-Time equivalents (FTE)                    322.1

   Stratospheric Ozone Depletion
      Budget Authority                         $ 17,002.9
      Full-Time equivalents (FTE)                     36.5

   Protect Public Health and Ecosystems From
   Persistent Toxics
      Budget Authority                          $4,278.6
      Full-Time equivalents (FTE)                     28.9
                                                        $70,624.7
                                                            84.9
                                                       $132,115.1
                                                           303.2
Achieve Cleaner and More Cost-Effective Practices
   Budget Authority                          $9,370.0
   Full-Time equivalents (FTE)                     53.5
                                                         $4,857.4
                                                            32.6
                                                          $12,436.5
                                                               51.9
$119,926.7
      82.3
$257,909.6
     328.7
                                                        $17,832.2    $27,998.0
                                                            36.6         37.8
  $5,482.8
      33.2
 $13,753.4
      51.1
                                  RT-16

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                    ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                              Goal Objective Summary

                                 Budget Authority
                               Full-Time Equivalency
                               (dollars in thousands)
                                             FY1999     FY2000      FY2001
   .  	ENACTED  ENACTED  PRESBUD

Expansion of Americans' Right to Know About their
Environment
   Budget Authority                           $139,083.2   $159,516.2    $185,109.1
   Full-Time equivalents (FTE)                        778.8        816.7        809.5

   increase Quality/Quantity of Education, Outreach,
   Data Availability
      Budget Authority                          $71,008.1    $98,700.3    $120,751.8
      Full-Time equivalents (FTE)                    403.7        447.0        438.6

   Improve Public's Ability to Reduce Exposure
      Budget Authority                          $42,114.6    $37,839.7     $39,605.9
      Full-Time equivalents (FTE)                    223.8        224.1        225.9

   Enhance Ability to Protect Public Health
      Budget Authority                          $25,960.5    $22,976.2     $24,751.4
      Full-Time equivalents (FTE)                    151.3        145.6        145.0

Sound Science, Improved Understanding of Env. Risk
and Greater Innovation to Address Env. Problems
   Budget Authority                           $334,507.9   $330,632.7    $328,757.7
   Full-Time equivalents (FTE)                       1,200.7      1,053.7       1,048.6

   Research for Ecosystem Assessment and Restoration
      Budget Authority                        $110,540.6   $120,401.6    $115,130.3
      Full-Time equivalents (FTE)                    439.1        342.9        339.3

   Research for Human Health Risk Assessment
      Budget Authority                          $49,902.0    $53,677.6     $58,324.7
      Full-Time equivalents (FTE)                    225.5      "  192.9        182.8

                                     RT-17

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                 ENVIRONMENTAL PROTECTION AGENCY

  FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                          Goal Objective Summary

                             Budget Authority
                           Full-Time Equivalency
                            (dollars in thousands)
                                          FY1999     FY2000     FY2001
                                         ENACTED  ENACTED  PRES BUD
Research to Detect Emerging Risk Issues
Budget Authority
Full-Time equivalents (FTE)

$54,935.7
192.2

$46,106.2
155.5

$54,357.3
160.2
Pollution Prevention and New Technology for
Environmental Protections
   Budget Authority                          $68,385.2     $68,295.8     $52,564.4
   Full-Time equivalents (FTE)                    169.3        205.2        198.0

Increase Use of Integrated, Holistic, Partnership
Approaches
   Budget Authority                          $16,706.6     $9,286.8     $17,088.5
   Full-Time equivalents (FTE)                     24.4          8.9          8.5

Increase Opportunities for Sector Based Approaches
   Budget Authority                          $20,762.2     $19,703.3     $15,921.3
   Full-Time equivalents (FTE)                     98.2         97.6        110.5

Regional Enhancement of Ability to Quantify
Environmental Outcomes
   Budget Authority                           $6,732.0     $6,089.0      $7,756.8
   Full-Time equivalents (FTE)                      9.2          5.5          4.1

Science Advisory Board Peer Review
   Budget Authority                           $2,486.7     $2,861.7      $2,674.0
   Full-Time equivalents (FTE)                     22.5         22.5         22.5

Incorporate Innovative Approaches to
Environmental Management

                                  RT-18

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                    ENVIRONMENTAL PROTECTION AGENCY

     FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                              Goal Objective Summary

                                  Budget Authority
                               Full-Time Equivalency
                                (dollars in thousands)
                                               FY1999     FY2000     FY2001
                                             ENACTED  ENACTED   PRES BUD
      Budget Authority                            $4,056.9
      Full-Time equivalents (FTE)                      20.3

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

   Enforcement Tools to Reduce Non-Compliance
      Budget Authority                          $279,217.7
      Full-Time equivalents (FTE)                   2,144.1

   Increase Use of Auditing, Self-Policing Policies
      Budget Authority                           $42,870.5
      Full-Time equivalents (FTE)                     443.7

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

   Executive Leadership
      Budget Authority                           $3 0,3 84.7
      Full-Time equivalents (FTE)                     268.8

   Management Services, Administrative, and Stewardship
      Budget Authority                          $ 197,641.9
      Full-Time equivalents (FTE)                   1,868.0

   Building Operations, Utilities and New Construction
      Budget Authority                          $358,709.5
      Full-Time equivalents (FTE)                      55.4

   Provide Audit and Investigative Products and Services
      Budget Authority                           $39,889.3
  $4,210.7      $4,940.4
      22.7         22.7
$372,754.7
   2.570.7
$323.337.5
   2.148.1
$447,231.8
   2,251.1
 $33,547.0
     274.9
$403,771.5
   2,572.7
5351,306.7
   2.149.2
 $49,417.2     $52,464.8
     422.6        423.5
$464,598.9
   2,256.2
 $37,066.7
     282.4
$198,776.5    $220,125.2
   1,592.6       1,592.8
$171,376.5    $161,518.1
       9.3           9.1
 $43,531.8     $45,888.9
                                      RT-19

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                  ENVIRONMENTAL PROTECTION AGENCY

    FY 2001 ANNUAL PERFORMANCE PLAN AND BUDGET REQUEST TO OMB

                           Goal Objective Summary

                              Budget Authority
                            Full-Time Equivalency
                             (dollars in thousands)
                                          FY1999     FY2000    FY2001
                    	ENACTED  ENACTED  PRES BUD
      Full-Time equivalents (FTE)                  382.8       374.3       371.9

Total, EPA APPROPRIATIONS
   Budget Authority                        $7,590,351.9  $7,562,810.7  $7,276,598.8
   Full-Time equivalents (FTE)                   18,366.2     18,100.3     18,050.0

Fees                                                            ($20,000.0)

ENVIRONMENTAL PROTECTION AGENCY (NET)
   Budget Authority                        $7,590,351.9  $7,562,810.7  $7,256,598.8
   Full-Time equivalents (FTE)                   18,366.2    $18,100.3     18,050,0
                                  RT-20

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Goal 1: Clean Air

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Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 1; Clean Air .......	,	,	1-1
       Attain NAAQS) for Ozone and PM	1-13
       Reduce Emissions of Air Toxics	1-45
       Attain NAAQS for CO, SO2, NO2, Lead	:., 1-59
       Acid'Rain	,	 1-66

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and CongressionalJustification

                                        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)
 Goal 01    Clean Air

  Obj. 01    Attain NAAQS for Ozone and PM

  Qbj, 02    Reduce Emissions of Air Toxics

  Obj. 03    Attain NAAQS for CO,-S02.N02,
           Lead

  Obj. 04    Acid Rain

                  Total Workyears
FY 1999
Enacted
8535,284.5
$387,110.4
$89,966.2
$40,071.7
$18,136.2
1,751,4
FY2000
Enacted
$540,9655
$382,105.9
$95,123.4
$44,103.4
$19,632.8
1,857.9
FY 2001
Request
$647,514.2
$455,169.9
$132,939.4
$39,111.4
$20,293,5
1,856.6
FY 2001 Req. v.
FY 2000 Ena.
5106,548.7
$73,064.0
$37,816.0
($4,992.0)
$660.7
(1.3)
Background and Context

       Despite concerted efforts to achieve cleaner, healthier air, air pollution continues to be a
widespread public health and environmental problem in the United States, contributing to illnesses
such as cancer and to respiratory, developmental and reproductive problems. In many cases, air
pollutants end up on the land or in rivers, lakes, and streams, harming the life in them. Air pollution
also makes soil and waterways more acidic, reduces visibility, and accelerates corrosion of buildings
and monuments.

       EPA is responding to air pollution because the 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 that lives in
expanding urban areas but also for less populated areas and national parks.  Federal assistance and
leadership are essential for developing cooperative state, local, tribal, regional, and international
programs to prevent and control air pollution and for ensuring that national standards are met.
                                            1-1

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

•      Ground-level ozone.  Causes respiratory illness, especially in active children; aggravates
       respiratory illnesses such as asthma; causes damage to vegetation and contributes to visibility
       problems.

•      Sulfur dioxide (SQ2). Aggravates the symptoms of asthma and is a major contributor to acid
       rain.

•      Nitrogen dioxide (NO2). Irritates the lung and contributes to the formation of ground-level
       ozone, acidic deposition, and visibility problems.

•      Carbon monoxide (CO). Interferes with the delivery of oxygen to body tissues, particularly
       affecting people with cardiovascular diseases.

•      Lead.   Causes nervous  system damage, especially in  children, leading to reduced
       intelligence.

«      Particulate matter (PM).   Linked to premature death in the elderly and people with
       cardiovascular disease and to respiratory illness in children; affects the environment through
       visibility impairment.

       Hazardous air pollutants. Hazardous air pollutants (HAPs), commonly referred to as air
toxics or toxic ah" pollutants, are pollutants that cause, or may cause, adverse health effects or
ecosystem  damage.    The  Clean  Air Act
Amendments of 1990 list 188 pollutants  or
chemical groups as hazardous air pollutants and
targets sources  emitting them for regulation.
Examples of air toxics include heavy metals
such as mercury and chromium,  dioxins, and
pesticides such  as  chlordane and toxaphene.
HAPs are emitted from-literally thousands of
sources including stationary as well as mobile
sources. Adverse effects to human health and
the environment due to HAPs can result from
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.
                                                NOx, S02f and  VOC
                                                                 Trends,,
                                            million
                                            short
                                            ton*
                                            15

                                                                    70
                                           1-2

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       Compared to information for the criteriapollutants,the information about the potential health
effects of HAPs (and their ambient concentrations) is relatively incomplete. Most of the information
on potential health effects of these pollutants is derived from experimental animal data. Of the 188
HAPs mentioned above, almost 60 percent are classified by EPA as known, probable, or possible
carcinogens. One of the more documented ecological concerns associated with toxic air pollutants
is the potential for some to damage aquatic ecosystems. Deposited air pollutants can be significant
contributors  to  overall
pollutant loadings entering
water bodies.
       Acid rain. The Clean
Air Act Amendments of 1990
established a  program to
control  emissions   from
electric power  plants  that
cause  acid rain and  other
environmental   and  public
health problems. Emissions
of SO2 and nitrogen  oxides
(NOJ 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
emissions  are  a  major
precursor  of ground-level  ozone,
which  affects  public  health and
damages  crops,  forests,  and
materials.     Additionally,  NOX
deposition   contributes   to
eutrophication  of coastal  waters,
such as the Chesapeake and Tampa
Bays.  Before falling to earth, SO2
and  NOX  gases can form  fine
particles that may ultimately 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.
                                           Change in Nonattainment Areas
   90

   80

   70

   60

2  50
i  40

   30

   20

   10
       90  91  92 93 94  95  96 97 98  99

                             fiscal year
  CO
4802*?
00
      04  05
               NO2

             O3 (1 hr)

             O3 (8 hr)

              PM10
               S02
     Any NAAQS (1-hr 0
     Any NAAQS (8-hr O:
                               50           100           150
                      millions of people living in Counties with
                        monitored levels above the NAAQS
                                           1-3

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       Air quality has continued to improve during  the past 10 years for all six pollutants.
Nationally, air quality concentration data taken from thousands of monitoring stations across the
country has continued to show improvement since the 1980s for ozone, PM, CO, NO2, SO2, and lead.

       In fact, all the years throughout the 1990s have shown better air quality than any of the years
in the 1980s.  This steady trend of improvement resulted in spite of weather conditions in the 1990s
which were generally more conducive to higher pollution levels, especially ground-level ozone
formation.  Emissions of hazardous air pollutants have also been reduced significantly. Actions
since the Clean Air Act was amended in 1990, have reduced air toxic emissions by over 1 million
tons annually, a greater than 25 percent reduction.  The primary programs responsible for the
reductions include  the Maximum Achievable Control Technology (MACT) standards and the
reformulated  gasoline programs.
                       Air  Toxics  Reductions
                   Emissions Reductions from Full Implementation of MACT Standards
     Tons per year
     600.00C
               Pre-MACT EmissipjiBost-MACT EmissK ns
              HON   Solvent  Dry Cleaning Gasoline
                    Cleaning           Distribution
Tons per year
10,000	
                                              8,000
                                              6,000
                                              4,000
                                              2,000
         I Pre-MACT EmissipjiSost-MACT Emissk ns
              -90%
                     -60%
                             -56%
                                     -5%
    Shipbuilding  Secondary    Chrome     Cooling
          MagnetiSk!f|SL£oke BectropiatiWood ' -99%
       The dramatic improvements in emissions and air quality occurred simultaneously with
significant increases in economic growth and population. The improvements are a result of effective
implementation of clean air laws and regulations, as well as improvements in the efficiency of
industrial technologies.
                                            1-4

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       While substantial progress has been made, it is important not to lose sight of the magnitude
of the air pollution problem that still remains. Despite great progress in air quality improvement,
in 1998 there were still approximately 59 million people nationwide who lived in counties with
monitored air quality levels that did not meet the primary National Ambient Air Quality Standards
(NAAQSs) set to protect public health.

       On May 14,1999, the U.S. Court of Appeals for the District of Columbia Circuit issued an
opinion (modified on October 29,1999) that calls into question EPA's ability to adopt and enforce
the new ozone and PM NAAQSs that were issued in July 1997, EPA strongly disagrees with this
decision and, with the Department of Justice, has filed a petition asking the Supreme Court to
overturn the decision.  The case does not affect the pre-existing NAAQS, which have not yet been
met in a number of areas.

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

       We have developed strategies to address this difficult increment and overcome the barriers
that have hindered progress in clean air in the past. We will use the flexibility built into the Clean
Air Act, which is not wedded to hard and fast formulas  or specific technological requirements.

       We will focus our efforts on:

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

       Using these strategies gets steady progress toward the goal and for many areas will achieve
       the goal. For those areas where additional measures are required, this work will allow steady
       progress toward the goal while providing the time to identify measures that will get that last
       increment to fully achieve the goal.

•      Maintaining accountability with flexibility - Ensuring that there is no backsliding in the
       progress already made to meeting the Clean Air  goal is critical. We will also use the Act's
       flexibility to develop innovative measures such  as the NOX trading program (which builds
       on the acid rain program)  to help states, tribes,  and local governments reduce ozone
       precursor emissions at the lowest cost. Under innovative provisions of Title II, EPA for the
       first time established vehicle emission standards and fuel quality standards simultaneously.
                                            1-5

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•      Promulgating regulations which maximize emission reductions while giving consideration
       to cost, lead time, safety, and energy impacts - EPA will review existing standards where
       appropriate to ensure the long-term goals of the Clean Air Act are met.

       Fostering technical innovations where they provide clear environmental benefits - Market-
       based approaches provide "niches" for many  types of technologies; no one size will fit all.
       Sources can improvise, innovate, and otherwise be creative in reducing emissions. We will
       promote such technological innovation and then disseminate it to others to show how they
       can get needed reductions.

•      Building partnerships - There are numerous forms of partnerships, all of which we have used
       at one point or another in implementing the Clean Air Act: using public outreach to educate
       people on air problems and encourage them to work to solve them; involving broad-based
       groups, such as the multi-state Ozone Transport Assessment Group, to study a problem and
       provide recommendations to EPA on ways to solve it; working with organizations like the
       National Academy of Sciences (NAS) on both short-term and long-term research priorities;
       and engaging in regulatory negotiations to bring stakeholders to work on a problem and
       address a specific regulatory issue. We will continue to use these types of partnerships as
       appropriate to implement the Clean Air Act.

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

       Using these strategies, we  will work with areas that have the worst problems to develop
strategies accounting for unique local conditions that may hinder them from reaching attainment.
We also will work with states, tribes, and local governments to ensure that work they are doing on
the PM and ozone standards effectively targets both pollutants, as well as regional haze, to maximize
the effectiveness of control strategies. On the national level, we will continue to establish Federal
standards to require cleaner motor vehicles, fuels and non-road equipment that are cost effective and
technically feasible. We also will target source characterization work, especially development and
improvement of emission factors, that is essential for the states, tribes and local agencies to develop
strategies to meet the standards. We will look closely at urban areas to determine the various sources
of toxics that enter the air, water, and soil and determine the best manner to reduce the total toxics
risk in these urban areas.  We will also focus on research that would inform and enhance our
regulatory decisions as well as research that would explore emerging areas.
                                            1-6

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       Research

        To reach the objective of attaining the NAAQS for tropospheric ozone, additional research
is planned to improve current models of emissions and atmospheric processes in order to identify
effective control strategies. In 2001, EPA will develop tropospheric ozone precursor measurements
methods, emissions-based air quality models, observation based modeling methods, and source
emissions information to  guide State Implementation Plan (SIP) development under the current
NAAQS. In support of Agency efforts to attain the NAAQS for PM, in 2001, research will provide
new information on the atmospheric concentrations, human exposure, health effects and mechanisms
of toxicity of particulate matter, and will facilitate PM NAAQS re view through the development and
consultation process involved in the formulation of a PM Air Quality Criteria Document.

       Air toxics research will seek to understand  further the root causes of the air toxics
environmental and human health problems in urban areas, thereby improving the ability to weigh
alternative strategies for solving those problems. Efforts will focus on providing new information
and methods to estimate human exposure and health effects from high priority urban air toxics, as
well as on completing health assessments for the highest priority hazardous air pollutants, including
fuel/fuel additives. 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 2001 Annual Performance Goals

Objective 01: Attain  NAAQS for Ozone and PM

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

•      Maintain healthy air quality for 33.4 million people living in 43 areas attaining the ozone
       standard; increase by 1.9 million the number of people living in areas with healthy air quality
       that have attained the standard; and certify that 5 new areas have attained the 1 -hour standard
       for ozone.

»      EPA will develop the infrastructure to implement the Clean Air Partnership Fund, which will
       demonstrate smart  multi-pollutant approaches that reduce greenhouse gases, air toxics, soot,
       and smog.

«      Maintain healthy air quality for 1.26 million people living in  13 areas attaining the PM
       standards, and increase by 60 thousand the number of people living in areas with healthy air
       quality that have attained the standard.

Objective 02: Reduce Emissions of Air Toxics

*      Air toxics emissions  nationwide from stationary and mobile sources combined will be
       reduced by 5% from 2000 (for a cumulative reduction of 35% from the 1993 level of 4.3
       million tons per year.)
                                           1-7

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Objective 03: Attain NAAQS for CO, SO2, NO2, Lead

•      Maintain healthy air quality for 28.8 million people living in 62 areas attaining the CO, SO2,
       NO2, and Lead standards, and increase by 16.4 million the number of people living in areas
       with healthy air quality that have attained the standard.

Objective 04: Acid Rain

*      5 million tons of SO2 emissions from utility sources will be reduced from the 1980 baseline.

»      2 million tons  of NOx from coal-fired  utility sources will be reduced from levels before
       implementation of Title IV of the Clean Air Act Amendments.


Highlights

Qzone/Particulate Matter/Regional Haze

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

       In 2001, EPA will assist states, tribes and local governments in devising additional stationary
source and mobile source strategies to reduce ozone and partieulate matter.  Some specific activities
and initiatives in this program will include:

*      Implementation of reinstated 1-hour ozone NAAQS - Develop and approve measures to
       attain and maintain the 1-hour standard for nonattainment areas. Redesignate areas that meet
       standards to attainment.

•      Completion of the process for designation of attainment  and nonattainment areas for the
       8-hour ozone NAAQS;

*      Using the Clean Air Partnership Fund, demonstrationof smart, multi-pollutant strategies that
       reduce ozone, PM, and other pollutants, including greenhouse gases.

•      Implementation of ozone control measures through an Economic Incentive Program.

•      Continuation of outreach efforts to promote public awareness of the Air Quality index and
       the effects of pollution.

«      Continued implementation of the PM-10 standards, including the collection and review of
       air quality data, processing state clean air plans, and redesignating areas with clean air.

«      Development and implementation of standards, plans, strategies, and actions to preserve air
       quality  and prevent further degradation in areas  with  the potential to be  designated
       nonattainment in the future.

•      Development and refinement of analysis tools for use by states and tribes, including for
       development of mobile and stationary source emissions data and inventories.
                                           1-8

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Implementation of the Tier 2 vehicle and fuel regulations. The Agency will make substantial
investment in developing and evaluating new technologies to reduce PM emissions from
diesel engines, including engine design enhancements, alternative after-
treatment controls and foel reformulations.
       Demonstration of the feasibility of diesel-engine
       control technology, as recently done for gasoline
       powered sports utility vehicles as part of the Tier 2
       rulemaking. Laboratory capabilities will be upgraded
       to keep pace with rapidly changing control
       technology, emissions reductions, and measurement
       needs and technology.

       Investigation and characterization of partieulate
       formation during the combustion process, the impact
       of known trends in vehicle engine design and after
       treatment control techniques, and determination of
       the leading edge opportunities for additional controls.
                                                        1993 NaUonal Toxic Air Pollutant Emissions by Source
                                                                 Smaff
                                                                Stationary
                                                              Sources (Anaaj
Large Industrial
                                                                               {Pofrt Sources)
                                                                                  6t%
                                                        Mobile
                                                       Souses
                                                        51%
                                                              /» ffatioiial Toxics Inventory data, smaller
                                                              ources accountjbr IS percent &/ US. laxie
                                                        emissions, natbifc sources account for 21 percent* and
                                                        larger iiuiseariatsources-for 6lperctta.
*      Assessments of the emission control potential of vehicles
       powered by technologies such as lean-burn and/or fuel-
       efficient technologies, including diesel engines equipped
       with advanced after-treatment  systems, gasoline direct
       injection engines, and other technologies that show promise for significant advances in fuel
       economy and meeting the Tier 2 standards in the post-2004 time frame. In this assessment
       the Agency will maintain a "systems" perspective, considering the progress of advanced
       vehicle  technologies in  the context of the role that sulfur in fuels plays in enabling the
       introduction of these advanced technologies or maximizing their effectiveness.

*      Initiation of in-use performance evaluations of national low emission vehicles (NLEVs) sold
       in northeast states to determine durability, predictive value for Tier 2, and potential recall for
       any emission system defects;

*      Expansion of the efforts of EPA' s Transportation Air Quality (TRAQ) Center in assisting
       state and local communities in developing transportation strategies and voluntary mobile
       source programs that respond to unique local conditions so that attainment can be reached.
       Specifically, the TRAQ Center  will provide transportation program information and tools,
       technical assistance, key contacts and funding sources, and partnership opportunities,

•      EPA will also operate the NOX Allowance and Emissions  Tracking Systems for the NOX
       Budget Program, as requested by the 12 States of the Ozone Transport Region. The Acid
       Rain Program will also administer the Emission and Allowance Tracking Systems for a NOX
       reduction program involving emissions trading across 22 States.

•      Evaluation of state and tribal partieulate monitoring.

*      Working with states and tribes on technical analyses and activities  related to regional
       planning and developing state and tribal implementation plans

Targeting Air Toxics Risks in Urban Areas
                                      1-9

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       In FY 2001, EPA will develop strategies and rules to help states reduce emissions  and
exposure to hazardous air pollutants, particularly in urban areas, and reduce harmful deposition in
water bodies. Some specific activities and initiatives in this program include:

•      Promulgating 25 MACT standards and a rule for heavy-duty highway diesel vehicles and
       cleaner diesel fuel;

•      Ensuring compliance  with the promulgated MACT standards including  developing
       implementation tools for 10 MACT standards and building tribal capacity to address air
       toxics.

•      Implementing an ambient air toxics measurement and monitoring program to better quantify
       ambient air toxic levels and characterize human exposures; updating and improving the
       National Toxics Inventory; evaluating and improving models of the impacts of air toxics on
       a national scale;

•      In partnership with states, enhancing and expanding the existing toxics monitoring network,
       which will be implemented through a peer-reviewed  strategy developed with the states.
       Soliciting HAP emission inventory information from states to improve the National Toxics
       Inventory.

•      Completing residual risk assessments for all 2-year MACT standards; continuing residual
       risk assessments for all 4-year MACT standards;

•      Completing regulatory determinations for electric utilities;

•      Evaluating the need for further regulations to control mobile source air toxics as required by
       section 202(1) of the Clean Air Act and promulgating regulations if needed and appropriate.

•      Implementing the reformulated gasoline program in areas of 17 states and the District of
       Columbia.

•      Using the Clean Air Partnership Fund to demonstrate smart, multi-pollutant strategies that
       reduce air toxics and other pollutants.

Carbon Monoxide. Lead. Nitrogen Oxide and Sulfur Dioxide

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

       EPA has established a permitting program, run by the states, for air emission sources to bring
all the regulatory requirements of aplant into one unified operating permit document. There are also
permit programs for preconstruction  review  of facilities.  EPA will continue to simplify  and
streamline the rules and guidance in implementing these programs to simplify their use by the
industrial sources.
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Acid Rain

       In FY 2001, Phase II of the Acid Rain Program will be in its second year of operation,
affecting 2,000 industrial and utility sources. The Program also intends to launch a multi-year effort
to re-engineer the information technology support structure in order to meet current and future needs,
including increased emissions reporting and verification, and allowance trading activities.

       Research

       EPA's Tropospheric ozone research program is focused on developing inforrnation,methods,
models and assessments to support implementation of the current ozone NAAQS and the required
review of the standard every five years. This research will produce an initial external review draft
of the ozone Air Quality Criteria Document (AQCD) for public comment and Clean Air Scientific
Advisory Committee (CASAC) review, which will help guide State Implementation Plans (SIPs)
on the current NAAQS. In 2001, the Particulate Matter Research Program will complete the final
PM AQCD, in addition to completing data collection for a PM longitudinal panel study. Efforts will
also focus on completing a 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. This new information will help move the  Agency  toward its objective of reducing
Americans' exposure to harmful particulate matter.

       Air toxics research  will provide effects information,  as well as the exposure,  source
characterization, and other data to quantify existing emissions, key pollutants, and strategies for cost
effective risk management.  In FY 2001, air toxics research will focus on completing three draft
lexicological reviews and assessments of high priority air toxics for external review as well as
validating a physiologically-based model for neurotoxicair toxicsand developingmicroenvironment
and neighborhood scale exposure models. These products will yield new information that will be
essential to effectively and efficiently decreasing future risk to the American public through reduced
air toxics emissions.
External Factors

Stakeholder Participation

       To achieve our collective goal of healthy, clean air, EPA relies on the proactive cooperation
of federal, state and local government agencies, industry, non-profit organisations, and individuals.
Our success is far from guaranteed even with the full participation of all our stakeholders. EPA has
significant work to accomplish just to reach its annual targets that support the longer term health and
environmental outcomes and improvements that are articulated in the Clean Air goal.  Meeting the
Clean Air goal necessitates a strong partnership among all the stakeholders but in particular, among
the states and EPA, the Environmental Council of States, and the State and Local Air Pollution
Control Officials. And, as we move into the 21st century, EPA will be working with our various
stakeholders to encourage new ways to meet the challenges of "cross regional" issues as well as to
integrate our programs to holisticaUy address airborne pollutants.

Environmental Factors

       In developing clean air strategies,  states and local  governments must  consider normal
meteorological patterns.  Meteorological conditions often control the formation and buildup of
pollutants in ambient air. For example, peak ozone concentrations typically occur, during hot, dry,
stagnant summer-time conditions.  Also CO buildup happens predominantly in cold weather.
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Finally the paniculate matter levels can be affected by the amount of rainfall as well as wildfires.

Litigation

       On May 14,1999, the U.S. Court of Appeals for the District of Columbia Circuit issued an
opinion (modified on October 29,1999) that calls into question EPA's ability to adopt and enforce
the new ozone and PM national ambient air quality standards (NAAQS) that were issued in July
1997. EPA strongly disagrees with this decision and, together with the Department of Justice, has
filed a petition asking the Supreme Court to overturn the decision. The case did not affect the
pre-existing NAAQS, which have not yet been met hi a number of areas.

       During this phase of the litigation, we believe we should not take actions implementing these
new standards if the actions could be construed as inconsistent with the court's opinion. However,
we continue to believe that the standards are necessary to protect public health, and nothing hi the
decision undercuts that belief.  We are evaluating our programs to determine how best to secure
necessary public health protections while still respecting the court's decision.
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                         Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

                                    Clean Air


Objective #1:  Attain NAAQS for Ozone and PM

      By 2010, improve air quality for Americans living in areas that do not meet the National
Ambient Air Quality Standard (NAAQS) for ozone and particulate matter (PM).
                                Resource Summary
                               (Dollars in thousands)

Attain NAAQS for Ozone and PM
Environmental Programs & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears


FY 1999 FY 2000
Enacted Enacted
$387,110.4 $382,105.9
$84,891.5 .$103,123.9
$146,263.3 $128,275.4
$155,955.6 $150,706.6
1,127.6 1,193.2
Key Programs
(Dollars in thousands)
FY1999
Enacted
Air,State,Local and Tribal Assistance Grants: Other Air Grants $1 55,955.6
Mobile Sources
Childrens Health
Tropospheric Ozone Research
Particulate Matter Research
EMPACT
Project XL
Common Sense Initiative
Clean Air Partnership Fund
$48,975.8
$0.0
$18,100.4
$55,842.9
$2,578.7
$0.0
$0.0
$0.0
FY2001
Request
$455,169.9
$103,358.0
$132,001.9
$219,810.0
1,188.8

FY2000
Enacted
$150,706.6
$45,496.0
$1,000.0
$6,273.7
$62,300.5
$2,969.1
$390.5
$135.6
$0.0
FY 2001 Req. v.
FY 2000 Ena.
$73,064.0
S234.1
$3,726.5
$69,103.4
-4.4

FY2001
Request
$160,510.0
$53,479.4
$1,000.0
$8,543.4
$65,267.9
$2,230.6
$0.0
$237.2
$59,300.0
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Ozone                                                 $30,979.3       $29,696.0       $32,092,2

Particular Matter                                          $26,807.0       $26,421.2       $33,226.4

Regional Haze                                            $12,271.7        $1,851.5        $2,233.0

Rent, Utilities and Security                                     $0.0      $21,005.2       $23,040.7

Administrative Services                                       $3.04.3       $3,058.3        $3,225.7

Regional Management                                          $0,0        $215.4         $214.2



FY 2001 Request

      Under the Clean Air Act, EPA must set NAAQS s for pollutants that are widespread, endanger
public health and the environment, and originate from numerous and diverse sources.   For each
pollutant, EPA sets both health-based or "primary" standards to protect human health, and welfare-
based and "secondary" standards to protect the environment (crops, vegetation, wildlife, buildings
and national monuments, etc.).  States and tribes then must develop and carry out strategies and
measures to attain the NAAQS. These strategies and measures are included in state implementation
plans (SIPs) and tribal implementation plans (TIPs). The Clean Air Act  also requires states to
develop programs to protect and improve visibility in national parks and wilderness areas. EPA
works in partnership with Federally recognized tribes to carry out Federal trust responsibilities and
implementthoseprovisions of the Act that most effectively address air quality management concerns
on tribal lands.  In addition, EPA establishes, implements, and enforces national control programs
on such sources as motor vehicles and fuels.

      In July 1997, EPA published revised, more protective NAAQSs for ozone and PM. On May
14,1999, the United States Court of Appeals for the District of Columbia Circuit issued an opinion,
modified on October 29,1999, remanding the revisions on the grounds that Section 109 of the Clean
Air Act - as applied in setting these new public health standards — were unconstitutional as  an
improper delegation of legislative authority to the executive branch.  The Court held further that the
classification scheme and attainment dates for the pre-existing primary 1-hour ozone standards hi
Subpart 2 of the Clean Air Act affect the Agency's ability to enforce the revised  8-hour ozone
standard; that EPA must consider whether ozone has a beneficial effect in reducing exposure to UVb
radiation, and if so, consider such effects in assessing ozone's net effects on health; and that PM,0
was a poorly matched indicator for coarse particulate pollution because PM10, as currently defined,
includes fine particles (for which EPA has now set a separate standard). The Court did not question
the science EPA relied on or the process EPA used in revising the NAAQSs.

      EPA strongly disagrees with this decision. It is a significant departure from well-established
case law and carries with it dangerous implications not only for the new public health  air quality
standards, but also for many other Federal laws or rules enacted to protect the health of the American
people.  For this reason, the Administration is seeking review by the Supreme Court of the decision
on the constitutional issue and EPA's ability to enforce the 8-hour standard.

      During this phase of the litigation, EPA plans to take no actions implementing the new
standards if the actions could be construed as inconsistent with the court's opinion.  However, the
Agency continues to believe the new standards are necessary to protect public health and nothing
in the decision undercuts the scientific basis for the standards. We are evaluating, and will continue
                                           1-14

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to evaluate, clean air programs to determine how best to secure necessary public health protections
while still respecting the court's decision.

       The May 1999 Court decision does not affect the pre-existing NAAQSs, which have not yet
been met in a number of areas. In light of the litigation, the Agency's 2000 efforts will be devoted
to maximizing the public health protection available under the 1 -hour ozone standard and the pre-
1997  PM10 standard.  To protect against  backsliding during the litigation, EPA has proposed
reinstating the 1-hour ozone standard in those areas where it was revoked when the 8-hour standard
was established.

       In 2001, EPA will provide research, technical tools, guidance, and data; (1) to support EPA's
decisions on the need to revise or reaffirm the NAAQS for PM in 2002 and later years; and (2) to
support state, tribal, and local analyses of their ozone and PM problems and the need for additional
air pollution controls. EPA also will establish Federal standards and measures for key stationary and
mobile sources that contribute to unhealthy levels of ozone and PM and that are best regulated at the
national level.  The budget request is geared toward enhancing  scientific knowledge and filling
critical information gaps regarding particulate matter before states, tribes, and local governments
identify areas not meeting the health-based NAAQS and begin to develop programs to reduce health
risks. The EPA-sponsored research on PM included in this proposal follows the recommendations
from the National Academy of Sciences (NAS).

       Urban and regional-scale numerical grid models  (i.e., UAM-IV, UAM-V, CAMx, etc)
continue to be used extensively for analysis of ozone issues and preparation of State Implementation
Plans (SIPs) during 2000 and are expected to continue into 2001 and beyond. In addition,  the use
of other modeling systems (i.e., REMSAD and Models-3) will intensify in support of Regional
Planning Bodies (RPBs) for addressing regional haze and for PM 2.5.  The applicability  of such
models will also benefit such programs as the Great Lakes Initiative, U.S./Mexico Border, and the
air toxics program. EPA, states and RPBs will work collaboratively in developing the capability to
continue  using these models, evaluating their accuracy and applicability to complex air quality
issues, testing and analyzing emission control alternatives, as well as sharing information on model
input data and estimates of ambient  concentrations.  Models-3 is  expected to be the focus of
significant efforts for evaluation, testing and application to multi-pollutant programs.

       EPA will focus extensively on public outreach and access to high quality information for
general and technical audiences to facilitate public understanding and smooth implementation of the
new NAAQSs.  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.

       Ozone.  Unlike most other pollutants, ozone is not emitted directly into the air by specific
sources, but is created by sunlight acting on nitrogen oxides (NCy and volatile organic compounds
(VOCs).  Some common sources include: gasoline vapors, chemical solvents, combustion products
of fuels, and consumer products.

       Ozone can impair the normal functioning of the lungs for people with respiratory problems
as well for healthy people.  Relatively low amounts of ozone can cause chest pain, shortness of
breath, and coughing. Ozone also may worsen asthma, bronchitis, and emphysema and is associated
with increased hospital admissions in many cities. Repeated exposure to ozone over months to years
can damage lung tissue and reduce quality of life. Repeated exposure to high levels of ozone for
several months can also produce permanent structural damage in the lungs. Adverse ecosystem
effects are known to occur for  various species of vegetation and are likely to extend to entire
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ecosystems. Ozone damage to plants is extensive, with major impacts on commercial crops of
wheat, corn, soybeans, cotton and commercial forestry.

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

       Emissions of ozone precursors can be carried hundreds of miles from their origins, and result
in high ozone concentrations over very large areas of the country affecting a given state's ability to
attain the NAAQS through traditional SIP programs. To address this persistent and widespread
problem, EPA will continue to work with affected states, local  governments,  tribes and other
stakeholders, developing control strategies for NOx and other precursors using a regional approach
rather than a state-by-state approach.

       EPA will administer the national program to implement the 1-hour NAAQS for ozone,
providing oversight and coordinating among Regions and with states to provide national consistency
and developing policy and guidance to resolve major issues. EPA and states will continue outreach
efforts to promote public awareness of the Air Quality Index (including 8-hour levels) and the effects
of ozone on health. Working closely with states and industry, EPA will develop a program of SIP
credits that result from voluntary measures to reduce emissions.  States will continue to implement
the 1-hour ozone standards.  For severe areas, states must develop and submit the necessary local
control measure portions of the required 1 -hour ozone attainment demonstrations with supplements
to address approvability issues such as transportation conformity budgets and emission reduction
"shortfalls."

       EPA will issue final guidance in 2000 on an economic incentives program to encourage states
to reduce emissions of air pollutants in the most efficient manner. EPA will continue to provide
guidance on market-based approaches to emissions control and to review and approve emissions
trading protocols for nationally significant source categories facilitate these trading programs.

       In 2001, EPA will review, and as appropriate revise, the policy used for responding to
petitions from industry for exemption of a compound from controls as a VOC. The Agency will
continue to work with tribes: developing programs for Indian Country, making  eligibility
determinations, completing VOC and NOx emission inventories and approving tribal air programs
as appropriate.

       In addition, the agency is undertaking a number of actions to assess air quality in Indian
country and to work with tribes to identify appropriate measures to address problems.  The agency
will work with tribes to develop emission inventories of sources on reservation lands and to establish
monitoring networks in Indian country to begin assessing the levels of ambient air pollution.

       To better assess the causes of the ozone problem, EPA will continue to collect ambient air
measurements for a target list of VOCs (precursors to both ozone and PM), as well as for nitrogen,
ozone, and both surface  and upper air meteorological measurements from the photochemical
assessment monitoring station (PAMS) network. In 1999, there are 24 PAMS areas, three of which
are new areas. In 2001, the three new areas will still be adding sites to their PAMS network and the
more established areas will have sites with up to eight years of data.  Continued national and local
analyses of the PAMS data will provide: 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 data base for developing
control strategies.  EPA also will explore and implement improvements to emissions testing and
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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 is also
working to improve emissions testing and monitoring of the low level NOx emissions required in
SIP's.

      To address the need for further reductions in motor vehicle emissions to attain and maintain
the new NAAQS, the Agency will review current motor vehicle and fuel standards and develop new
programs. In 1996, light-duty vehicles (LDVs) and light-duty tracks (LDTs) contributed more than
22 percent of national NOX emissions and 25 percent of VOC emissions. In 2000, the Agency
promulgated the Tier 2 program to begin in 2004. These standards, which will for the first time be
identical for both cars and light trucks, will also include measures to enhance flexibility and cost
effectiveness. In 2001, the Agency will continue work to implement Tier 2 vehicle and new Phase
1 heavy-duty highway diesel engine and vehicle, NOx and PM emissions standards and gasoline and
promulgate diesel sulfur requirements. This includes continued assessment of required technology.
In addition, EPA plans to finalize Phase 2 standards  for heavy-duty highway diesel  engines and
vehicles, including new diesel fuel sulfur requirements. Additionally, in 2001, the Agency, as part
of the implementation of the existing Tier 1 and National Low Emission Vehicle (NLEV) programs,
will continue to ensure that projected emission benefits from these programs are achieved.

New Standards will result in 77% NOx Reduction for Cars
Year
NOx Standard (gpm)
NOx Reduced (from
previous standard)
1975
3.1

197?
2.0
35%
1981
1.0
50%
1994
0.6
40%
1999
0.3
50%
2004+
0.07
77%
New Standards will result in 86% NOx Reduction for Light Trucks (LDT-2)
Year
NOx Standard (gpm)
NOx Reduced (from
previous standard)
1975
3.1

1977
2.3
26%
1981
1.2
48%
1994
0.6
50%
1999
0.5
17%
2004+
0.07
86%
      In 2001, EPA plans to finish the last of four ralemakings to address emissions from the
whole range of marine engines. The upcoming effort will reduce emissions from recreational diesel
marine engines and gasoline sterndrive and inboard engines. We already have set standards for other
marine engines, including outboard and personal watercraft and commercial marine diesel engines.

      Outboard and personal watercraft engines account for about eight  percent of the mobile
source VOC inventory. The phase-in of the standards started ip 1998 and will be fully implemented
in 2006; we project a 75 percent reduction in VOC emissions in 2025.  EPA will consider a new tier
of standards after full implementation of the current standards.

      Commercial marine diesel engines account for about 4.5 percent of the mobile source NOx
inventory; their extensive use around harbors causes a greater concentration of emissions around port
cities. The implementation dates for these engines range from 1999 or 2000 for engines rated under
37kW to 2004 or  2007 for larger engines.  We project a 24 percent reduction in NOx and a 12
percent reduction in PM from these engines in 2020. EPA proposed an additional tier of standards
but did not finalize them. Additional standards will be considered in the coming years.
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      EPA will continue implementing the emission standards for locomotives that will result in
more than 60 percent reduction in NOX, beginning in the year 2000.  Standards will help states
comply with NAAQS for ozone and PM.  There are three separate sets of locomotive emission
standards,, with applicability  of the standards dependent on the date a locomotive is first
manufactured. The first set of standards (Tier 0) apply to locomotives and locomotive engines
originally manufactured from 1973 through 2001, any time they are remanufactured in calendar year
2000 or later. The second and third sets of standards (Tier 1 and Tier 2) apply to locomotives and
locomotive engines originally manufactured on or after January 1,2002 (Tier 2 standards will take
effect on January 1,2005).  In 2001, the Agency will continue to evaluate certification test data to
insure locomotive designs comply with standards.  In addition, the Agency will begin collecting
Production Line Test data that helps ensure that new locomotive manufacturers develop an optional
in-use emission factor program that can be used for 2002 - 2004 model year locomotives in place
of the required in-use testing program contained in the regulations.

      In  2001,  EPA will partner with states,  tribes, and local  governments to  create a
comprehensive compliance program to ensure that vehicle 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 system with vehicle inspection and maintenance (I/M) programs and
to ensure the overall emission system durability on such vehicles. With this information, we will
work to establish an integrated information system which allows for assessment and action on those
vehicles and engines categories which present the greatest environmental risk.

      EPA will provide key support for the technical development and application of OBD systems
for vehicles and engines; OBD systems serve as the critical mechanism for identifying and repairing
emission-related problems. In support of states, tribes, and local governments, EPA will provide
technical assistance regarding the use of OBD systems as part of a comprehensive inspection and
maintenance program.

      The Agency will continue to ensure implementation of I/M programs and to review SIPs.
In 2001, about 37 states will be implementing I/M programs. EPA will continue providing technical
and programmatic guidance to states and local agencies for implementing high technology-based I/M
programs. The Agency will develop OBD SIP credits and will finalize implementation guidance for
I/M test methods and for I/M clean screening. In 2001, following a 2000 rulemaking proposal, EPA
will  implement the OBD inspection in I/M lanes to evaluate the adequacy of the OBD technology
in identifying high emitting vehicles, vehicle owner responsiveness to OBD malfunction indicator
lights, and adequacy of the technology in replacing tailpipe testing for OBD-equipped vehicles
throughout their useful life. The Agency will continue to apply its in-use program.

      EPA will assist hi the evaluation of the National Highway System Designation Act programs,
facilitating actions across regions to ensure national consistency on the adequacy of demonstrations.
As part of implementing the ozone standard and regional haze rale, EPA's Transportation Air
Quality Center will continue assistance to states and local governments including implementation
of the transportation conformity rule and support for voluntary mobile source programs. 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
promulgate regulations dealing with transportation conformity in 2000  which will be implemented
in 2001.
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      The Agency will continue implementing Phase II of the  reformulated gasoline (RFG)
program, which will result in additional VOC, NOX, and toxic emission reductions in 17 states and
the District of Columbia, and  will provide technical and programmatic guidance to states
implementing clean fuel programs. RFG is designed to reduce vehicle emissions of ozone-forming
and toxic pollutants and it is required to reduce VOC emissions by 25 percent, toxic emissions by
22 percent, and NOX emissions by 6.8 percent. EPA will continue to address issues associated with
the use of oxygenates (e.g., MTBE and ethanol) in RFG, with emphasis on implementing September
1999 recommendations from the Blue Ribbon Panel on the Use of Oxygenates in Gasoline.  EPA
will process approximately 100,000 fuel quality reports and review 156 fuel surveys with 17,000
samples.

      The National Vehicle and Fuels Emissions Laboratory (NVFEL) will continue to conduct
pre-production tests, certification audits, in-use assessments, and recall programs to support mobile
source programs. In 2001, EPA will continue conducting testing activities for fuel economy, LDV
and heavy-duty engine (HDE) characterization, Tier 2 testing, reformulated gasoline, future fleets,
OBD evaluations, certification audits and recall programs. To support confirmatory and compliance
programs, the NVFEL will conduct 400 certification and fuel economy tests on LDV, LOT and
Medium Duty Passenger Vehicles (MDPV) families and will conduct 200 compliance on in-use
LDVs and LDTs. In addition, EPA will conduct 200 tests on LDVs, LDTs, and MDPVs and 250
tests on on-highway HDEs, non-road compression-ignition engines, and spark ignition engines.
EPA also will conduct 250 tests on LDVs, LDTs, and MDPVs and 300 tests on on-highway HDDEs,
non-road compression-ignition  engines, and on-road  spark-ignition  engines.  The Agency  will
continue providing  guidance and training in the use of the MOBILE6 model.

      The certification program will oversee more than 100 original equipment manufacturers and
issue certificates of compliance with the latest emission standards. The mobile source fees program
will  collect approximately $9.7  million, offsetting costs of the  certification, recall, selective
enforcement audit, and fuel economy programs. The statutory fuel economy information program
will issue 1,000 economy consumer labels and data for the Gas Mileage Guide and "gas guzzler" tax
collection.  This program will issue approximately 250 certificates for LDVs, 250 certificates for
LDTs, 125 certificates for motorcycles, 150 certificates of on-highway gasoline and diesel engines,
500 certificates for  CI non-road engines, 550 certificates for small SI engines, 175 certificates for
marine engines required to meet EPA standards, 50 certificates for marine engines required to meet
International Maritime Organization (IMO) emission standards, 15 certificates for locomotive
engines, 1,000 test audits for manufacturer compliance and 300 confirmatory tests.

      The 2001 model year will be the first year of mandatory participation in the Agency's  new
compliance assurance program (CAP 2000). CAP 2000 will simplify and streamline the current
procedures for pre-production certification of new motor vehicles. Manufacturers are projected to
save $55 million each year under the CAP 2000 program. Under CAP 2000, manufacturers will
supply in-use test data for each class of vehicle sold. These data will be an important tool for the
Agency in targeting its recall testing investigations.

      In  addition  to  its Title  IV responsibilities, the Acid  Rain Program operates the NOx
Allowance and Emissions Tracking Systems for the NOx Budget Program, as requested by the 12
States of the Ozone Transport Region (OTR). Compliance for this program is being phased in over
the 1999 to 2001 summer ozone seasons due to litigation complications. Over 900 facilities will
require certification of emissions monitors for reporting quarterly emissions data to EPA. The OTR
Program is expected to increase EPA's current allowance trading activities by approximately 50
percent. Coupled with reductions achieved through Title TV implementation, it is anticipated that
the NOx Budget Program will result in approximately a 50 percent reduction of NOx emissions in
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the OTR from the 1990 baseline, which will be maintained annually through at least 2002. In 2001,
the second phase of this program will be completed and work on Phase III will be initiated, with
expected implementation by 2003.

      In 2001 and 2002, the Acid Rain Program will also be involved in implementing the NOx
reduction programs under the NOx SIP Call or Section 126 Petitions, depending on the outcome of
current litigation. (The D.C. Circuit has temporarily stayed the NOx SIP submission date pending
its decision on the merits). The SIP Call could comprise an additional 1,400 units requiring review
of monitoring plans, certification of monitoring methods, and reporting of quarterly emissions.
Furthermore, the Acid Rain Program may be involved in administering the Emission and Allowance
Tracking Systems for a NOx reduction program that involves trading across 22 States.

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

      During 2000, EPA is preparing a comprehensive summary of the recent scientific findings
regarding air quality, exposure, and health effects of PM in the PM Criteria Document, and this
document will be completed and available to the public in the fall of 2000.  On the basis of the
findings reported in the Criteria Document and other analyses, such as air quality trends and risk
assessment analyses, EPA will prepare a Staff Paper that provides recommendations to the
Administrator on how the PM NAAQS should be revised. The Staff Paper development is being
initiated in 2000 and the first draft will be reviewed by the CASAC in the fall of 2000.  During
2001, the Staff Paper will be revised for a second review by the CASAC. and the completed
document will be available in spring of 2001.  As the Staff Paper is completed,  development of a
proposal for how to revise the PM NAAQS will begin. The proposed rule is targeted for publication
in fall 2001.

      EPA  is better defining the PM2.S (or PM fine) problem by assisting states and tribes in
establishing  and  mauitaining  a  nationwide monitoring  network and  carrying  out  source
characterization analyses. Since promulgating the new PM2.5 standards, EPA has been working with
states and tribes to install monitors and obtain data on PM2.5  particle emissions including 28
monitors for Indian Country.  This compliance network is fully operational for states as of
December 31, 1999. The Indian Country monitors should be operational by December 31,2000.
EPA has committed to providing 100 percent of the funding through state and tribal grants under the
authority of section 103 of the Clean Air Act  EPA also will promote the use of continuous PM
monitoring and improved fine PM test methods. States and tribes will also use the air quality data
and chemical speciation data to identify PM sources and "hot spots" for purposes of developing any
SIPs and TTPs that may ultimately be required depending on the resolution of the NAAQS litigation.
As recommended by NAS, EPA is discussing with the Clean Air Science Advisory Committee
ways to increase the usefulness  of the  resultant monitoring data to  PM health  effects and
epidemiology researchers.

      EPA, states, and tribes will continue to implement the CAA requirements for the pre-1997
PM10 standard, including bump-ups and SIP rulemaking actions on plans for serious PM10
nonattainment areas.  Monitoring data for PM10 will continue to be used to characterize emission
sources, evaluate air quality models, and contribute to the regular scientific health review of the
standard.
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      To ensure the source and ambient monitoring measurements are credible, EPA will continue
to develop and conduct quality assurance protocols. Currently our efforts are focused on the quality
assurance of the ambient PM2.5 monitoring network because of its recent establishment.

      In 2001 and beyond, EPA will also develop improvements to source testing and monitoring
methods for PM and PM2.5 emissions from stationary sources. These method improvements are
needed at this time for characterization of PM2.5 emissions. The improved methods will also be
available for determining compliance with any future PM2.5 SIP emission limits that may be needed.

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

      Levels of PM caused by mobile sources are expected to 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.  EPA will promulgate new diesel fuel standards and Phase 2 heavy-duty vehicle and
engine standards.  The Agency will continue working toward implementing Phase 1 heavy-duty
standards for the 2004 model year and the Tier 2 standards. The 2001 non-road engine technology
review will be finalized. The Agency will continue work on PART6 (Particulate emission factor
model)  for PM inventories and analyses.  EPA will conduct studies on in-use performance of
advanced technology vehicles.

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

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

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

      Since 1987, EPA has supported the long-term visibility monitoring program known as the
Interagency Monitoring of Protected Visual Environments (IMPROVE) network. The IMPROVE
network collects data on visibility, including optical and photographic data, at 30 sites. To broaden
understanding of class I area visibility, EPA will add an additional 78 sites to the IMPROVE
network in early 2000. EPA will work with western states to determine the steps that are needed to
preserve clear days and improve visibility in the 16 national parks and wilderness areas located in
                                          1-21

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the Colorado Plateau.  An Eastern regional haze program will address visibility impairment in the
Appalachian Mountains.  IMPROVE sites will also better characterize background PM2 5 levels.

      Regional emissions reductions to attain any fine particle NAAQS that may become effective
in the future and meet requirements of other programs (such as the acid rain program) would be
expected to improve visibility hi certain parks and wilderness areas, particularly in the East. In parts
of the West, visibility is expected to improve as western states implement the recommendations of
the Grand Canyon Visibility Transport Commission.

Implementation of NAAOS and Visibility Requirements

      Ground-level ozone, fine PM, and regional haze have many similarities. Both ozone and PM
(and the resulting regional haze) remain in the atmosphere for days, leading to regional scale
transport that can affect broad areas of the country.  Both pollutants are formed under certain
atmospheric conditions by gases, such as NOX and VOCs, emitted by the same types of sources.
Moreover, 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. One  of the activities EPA is currently engaged in is
developing an integrated ambient monitoring strategy to determine the optimal number of monitors
and associated man-hours needed for each pollutant given the competing needs of measuring the
other pollutants. As we determine the need to add monitors or change location of monitors in the
network, we will use this strategy to minimize any increase in resources needed.

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

      Research

Tropospheric Ozone Research

      EPA's tropospheric ozone research program is devoted to the two missions of: 1) periodic
review and revision as needed  of the NAAQS, (i.e. risk assessment and effects research); and 2)
implementation and attainment of the NAAQS, (i.e. exposure and risk management research).  In
FY 2001, the Agency will continue its ozone research in risk assessment, exposure and risk
management. Ozone specific health effects research is not planned for F Y 2001, however evaluation
of ozone effects as a co-pollutant will continue under the PM research program. Ozone ecological
                                           1-22

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effects research is also nota addressed here for FY 2001, but addressed instead under Ecosystem
Protection research.

      Research will continue on the development of improved risk assessment procedures and
preparation of the next round of Criteria Documents for ozone. Criteria document development for
other NAAQS  (e.g., carbon monoxide, nitrogen dioxide, lead and sulfur dioxide) currently falls
under the ozone program.  In FY 2001, the Agency will develop tropospheric  ozone, nitrogen
dioxide and/or sulfur dioxide Air Quality Criteria Documents through planning, development, and/or
consultation. These Criteria Documents are the scientific foundation for NAAQS decisions.

      In order to help states achieve the Ozone NAAQS under their State Implementation Plans
(SIPs), EPA will continue its exposure and risk management research on atmospheric chemistry and
emissions based air quality models, observation based methods and modeling, and source emissions.
Products derived will provide the means for comprehensive State planning and later evaluation of
the relative effectiveness of the major emissions reduction strategies for volatile organic compounds
(VOCs) and nitrogen oxides (NO) to reduce ozone.  Products will be  particularly useful in the
development of the attainment demonstration SIPs due to be submitted by States to EPA. EPA will
continue to explore innovative analytic approaches like combining observational approaches with
emissions-based modeling, to help cope with even more difficult attainment problems, such as
regional NOx control strategies.

      Exposure research on atmospheric chemistry and modeling continues to focus on identifying
the causative agents responsible for non-attainment, e.g. chemical constituents, sources and source
regions, and meteorological  variables.  This research will also describe missing features of the
atmospheric chemistry of ozone formation and produce a new streamlined module (the Morphecule
mechanism) of ozone forming chemistry for use in atmospheric chemistry models, greatly reducing
their computational requirements and increasing their capabilities. In addition, the next generation
regional air quality model (Models-3/CMAQ, or Community Model  for Air Quality) will be
thoroughly evaluated and  its reliability in projecting impacts of alternative control strategies
characterized.

      Exposure research on methods and observations-based assessments in FY 2001 will
 provide a reliable means of determining  with certainty the result of State and  local emissions
reductions by developing ambient techniques to measure ozone precursors and their transformation
during meteorological transport.  EPA will develop and evaluate these observational based methods,
through intensive regional field studies, to compliment emissions based, physical theory modeling,
and develop the protocols, combining modeling and observational approaches, for use by the
scientific and  policy community in conducting  integrated multi-scale  program effectiveness
assessments.

      Risk management research will focus on biogenic and mobile emissions in order to improve
the accuracy of emission estimates from these sources. Biogenic emission research will develop
improved emission factors for additional vegetative types and compounds, understand how human
activities (mowing and harvesting) influence emissions, determine how emissions change between
seasons, regional differences in biogenics and perform model validation studies. Mobile emissions
research will focus on further development and validation of the Mobile Emissions Assessment
System for Urban and Regional Evaluation (MEASURE) whichprovidesmore accuratemodal-based
emission estimates. Studies will be performed to add information on vehicles characterized as "high
emitters"and to collect actual on-road data using an instrumented car to validate MEASURE outputs.
The  data generated from this research is  used by EPA to develop National  Emissions Trends
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Databases and by state and local planners as inputs to the atmospheric chemistry models (Models-
3/CMAQ) used to evaluate attainment strategies.

Particulate Matter Research

       The partieulate matter (PM) research program provides the scientific basis for periodic review
and revision as needed for  the PM NAAQS (i.e. effects, human exposure and risk assessment
research), and the implementation and attainment of the PM NAAQS (i.e. environmental exposure
and risk management research).

       EPA's 1998 appropriation bill identified an important role for the National Academy of
Sciences (NAS) in developing and monitoring implementationof a comprehensive, prioritized, near-
and long-term particulate matter research plan. The NAS issued its initial report, Research Priorities
for Airborne Particulate Matter, Immediate Priorities and a Long-Range Research Portfolio, in
March 1998.  EPA has continued to work with the NAS panel, and an updated report on research
priorities, Research Priorities for Airborne Particulate Matter: Evaluating Research Progress and
Updating the Portfolio, was issued in August 1999.  This Annual Performance Plan (APP) is
consistent with the update and reflects the refocusing of Research Topics 3 and 4 of the NAS Plan,
which now encompass research previously identified as "Implementation Research" in prior APPs.
NAS' ten priority areas for PM research are:

1.     Outdoor measures versus actual human exposures to PM;
2.     Exposure of susceptible subpopulations to toxic PM components;
1.     Characterization of PM emission sources;
2.     Air quality model development and testing;
3.     Assess hazardous PM components;
4.     Dosimetry;
5.     Effects of PM and co-pollutants;
6.     Identify susceptible subpopulations;
7.     Toxicological mechanisms of injury; and
8.     Analysis and measurement.

Health Effects and Human Exposure Research

       Under NAS research topics  1 and 2 ("Outdoor measures vs. Actual human exposures" and
"Exposure of susceptible subpopulations"), research will develop information on major classes of
potentially toxic components found in daily exposure levels for use by health effects researchers in
creating hypotheses and analyzing mechanism studies described below. Exposure research planned
for__ 2001 also includes analysis and reporting of exposure data for the general population and
susceptible sub-populations, and using this data to test a first generation exposure model for
extrapolating exposures to unmonitored areas. Work will continue on linking the exposure model
to atmospheric models and lung deposition models.

       Health effects research will work to fill the current gaps in our understanding of the observed
excess mortality and morbidity associated with particulate  air pollution.  Epidemiologic and
toxicological studies will help answer questions regarding the biological mechanisms underlying
PM-related effects, and will also help identify which PM components are associated with health
effects.

       Under NAS  areas 5,6 and 9 ("Assess hazardous PM  components," "Dosimetry" and
"Mechanisms of injury") EPA will determine physical, chemical, and biological characteristics of
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particles responsible for adverse health effects and dose-response relationships between PM
constituents and adverse health effects.

       Health effects research planned for FY 2001 involving in vivo and in vitro studies of
interactions between PM and other air pollutants falls under NAS topic 7 ("Combined effects of PM
and co-pollutants"), as do planned toxicology and clinical studies to investigate effects of co-
pollutants on PM health effects, deposition,, and clearance. Under NAS topic 8  ("Susceptible
subpopulations") EPA effects research efforts will identify subpopulations with enhanced sensitivity
to the adverse effects of PM and determine how host susceptibility factors influence dose-response
relationships.   Under  this  same NAS topic,  health  effects research will  also  conduct
epidemiology/exposure studies aimed at identifying morbidity effects on vulnerable population
subgroups.

Environmental Exposure and Modeling

       Under revised NAS topic 4("Air-Quality-Model Development and Testing,") the Agency
plans in FY 2001 to conduct atmospheric measurement and modeling research to evaluate the
chemical and physical processes that control the organic and inorganic chemical composition of PM.
The Agency also plans to begin developing urban-to-regional scale emissions based air quality
models and source apportionment models and their component inputs (e.g., chemical mechanisms
and source speciation profiles). This  effort will serve to increase understanding of atmospheric
processes (including meteorology) and chemistry that affect the secondary formation, transport and
fate to support NAAQS implementation planning.  In FY 2001 the Agency will: begin developing
and evaluating better PM monitoring instruments and methods needed to accurately determine the
physical properties, chemistry and composition of atmospheric aerosols; and use data from the
application of these and other advanced methods to test and evaluate improved source-to-receptor
models for observationally determining the sources contributing to a region's PM levels.

Risk Management Research

       Risk management research under revised NAS topic 3 ( "Characterization of Emissions
Sources,") will study the mechanisms that influence the entry of fine particles into the indoor
environment and to determine the emission characteristics of PM from priority indoor sources
including vacuuming and combustion.  Source emissions research will improve date on the emission
rates and characteristics (size distribution, species) of the particles emitted. The influence of human
activities on emissions will also be considered.

        Also under revised NAS topic 3, EPA will provide updated and augmented data on the
chemical composition of fine PM from a variety of mobile and stationary sources. EPA will also
conduct PM emission characterization research to develop new or improved emission factors for
sources of primary fine particles and for ammonia from animal husbandry operations, one of the
major gaseous precursors of secondary fine particles, and to provide data on the size distribution of
the particles emitted. In addition, laboratory and field studies will be conducted to determine the
performance of advanced fine PM control technologies including improved  fabric filters and
electrostatic preeipitators.  Integrated systems which simultaneously reduce both primary and
secondary gaseous  precursors  (nitrogen oxides, sulfur oxides) will also be investigated.
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Analysis and Measurement

      Under NAS research topic 10, EPA will support development and evaluation of advanced
statistical methods for application to epidemiological data sets. Research will also be conducted to
evaluate features and impact of mis-classification error on risk estimates,

PM Centers/Longer-term Research

      The five university-based research centers, established in 1999, will continue to advance the
scientific understanding of the health effects of PM through integrated studies that support a multi-
disciplinary array of projects.  The Agency's longer  term research will focus on exposure,
toxicology, and epidemiology.

Speciation/Supersites

      Continued coordination and oversight of supersite monitoring activities will provide detailed
air quality information to support atmospheric chemistry and modeling efforts,  as well as
mechanistic toxicology and epidemiology studies that will support both future NAAQS decision-
making and implementation of the NAAQS.


FY 2001 Change from FY 2000 Enacted

EPM

•     (-$ 10,045,800) Funding to support the following six Congressional earmarks in 2000 will not
      be continued hi 2001: Southwest Center for Environmental Research and Policy (SCERP);
      Southern  Appalachian Mountain Institute; National Alternative Fuels Vehicle Training
      Program;  National Center for Vehicle Emissions Control and Safety; Northeast States for
      Coordinated Air Use Management (NESCAUM); and section 103 grants to states to help
      them develop regional haze programs.   Funding for the section 103  grants in 2001  is
      requested in the STAG appropriation to continue helping the states and regional planning
      bodies with the regional haze program.

•     (+$3,400,000) EPA will increase funding for developing emission factors from sources that
      states, tribes, and-local agencies will need to develop and implement control strategies and
      for sources to write permits under the revised NAAQS.
S&T
      (-$2,849,900) Funding to support the following three Congressional earmarks in 2000 will
      not be continued: California Regional PM 10 and 2.5 Air Quality Study; University of
      California/Riverside CE-CERT Program; and the National Research Council study of the
      Clean Air Program.

      (-$1,300,000) Resources which provided support for PM site monitoring will be reduced as
      the sites are established and operating.

      (+$1,400,000) Resources will also be devoted to work on implementing the Tier 2 rule,
      which will result in major NOx reductions in the post-2004 time frame that are critical to the
      attainment and maintenance of the ozone NAAQS.  Implementation this year will require
                                          1-26

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      putting into place the geographic phase-in program, including identifying the counties for
      each area, reviewing and approving refinery sulfur baselines, and reviewing and approving
      applications for small refinery qualification. Increased resources will also provide support
      to the NVFEL lab to fund facility requirements that are needed to maintain the program.
      Emission measurement equipment must be upgraded to enable accurate measurement of the
      emission levels of vehicles and engines complying with the newNLEV and Tier 2 standards.
      Without these resources, the physical basis for the mobile source program's regulatory and
      compliance activities will no longer be able to sustain the required levels of regulatory,
      testing, and technology assessment activity.
STAG
       (+$5,000,000)  Regional Planning Bodies  for Regional  Haze.  In the 1999 and 2000
       Appropriations, Congress earmarked funds for planning bodies to help states implement the
       regional haze rule.  Five such planning bodies were established.  States will also have to
       review their programs to coordinate progress toward regional haze reductions with ongoing
       programs.

       (+$59,300,000) Clean Air Partnership Fund.  The Fund will provide an opportunity for cities,
       states, and tribes to partner with the private sector, Federal government and each other to
       provide healthy clean air to local citizens. The fund will demonstrate smart multi-pollutant
       strategies that reduce greenhouse gases, air toxics, soot, and smog to protect our climate and
       our health.

       The Clean Air Partnership  Fund will: be  a catalyst  for innovative  local, state, private
       partnerships for air pollution reductions; demonstrate locally managed,  self-supporting
       programs that achieve early integrated reductions in soot, smog, air toxics, and greenhouse
       gases; be used to capitalize local  revolving funds and other financial mechanisms that
       leverage the original federal investment and result in greater resources for air pollution
       reduction; and, stimulate technology innovation.

       The Clean  Air Partnership will fund more optimal, multi-pollutant control strategies.
       Currently, businesses and municipalities often invest in short-term, single-pollutant control
       approaches.  The Partnership will encourage many industries, such as electric utilities and
       the transportation sector, to pursue comprehensive criteria pollutant reductions while
       improving energy  and operation  efficiencies,  thereby  also  reducing greenhouse gas
       emissions.  The Clean Air Fund will provide these needed resources through mechanisms
       that promise significant leveraging of non-Federal resources. It is expected that the Fund
       will support the development of local revolving funds which will provide low-interest
       loans, matching funds, public-private partnerships, and other capitalization mechanisms.
       Research

S&T

       Ozone
       (+$960,420, +7.1 workyears) The request includes an increase in  resources to support
       implementation and review of the NAAQS for ozone. The increase will support research to
       determine the causative agents responsible for ozone non-attainment and to provide a reliable
                                           1-27

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       means of determining with certainty what has in fact been the result of state and local
       emissions reductions.  Biogenic emission research under this request will improve the
       accuracy of emission estimates of volatile organic compounds emitted from natural sources.
       The data generated from this research will be utilized by state and local planners as inputs
       to the atmospheric chemistry models (Models-3) used to evaluate attainment strategies.

•      (+$1,309,280, +1.8 workyears) The R&D program, including infrastructure support costs,
       is spread across eight of the ten goals in the Agency's GPRA/budget structure. Based on a
       review of actual infrastructure utilization under each goal (i.e., utilization of workyears and
       associated PC&B, travel, operating expenses, and working capital fund), adjustments are
       being made across goals to more accurately reflect expectations for use hi FY 2001. These
       adjustments are expected to have no significant impact on performance goals or expectations
       for any single goal, nor for the research program as a whole.

       Particulate Matter

       While overall there is a $2.8M increase in PM, there are some internal redirections in the
program as reflected in the discussion below.

•      (+$7,136,270, +13.3 workyears)  These resources will support PM chronic epidemiology
       research to evaluate the role of chronic PM and copollutant exposure in producing morbidity
       and mortality and to assess the most prominent PM health risks.  This is in response to the
       N AS recommendation for a substantial program of epidemiology research beginning in 2001
       as an enduring focus of EPA's PM research portfolio (NAS research areas 7 and 8.) Current
       PM chronic epidemiology data are very limited, yet data in hand indicate that chronic health
       effects from PM exposures are substantial. This research will provide the data needed to
       reduce uncertainty in setting an effective PM standard.

•      (+$4,414,620, +13.8 workyears) An increase in resources is necessary in order to augment
       research activities to  characterize PM emission sources (NAS 3), assess hazardous  PM
       components  (NAS 5), investigate PM dosimetry  (NAS 6), identify the lexicological
       mechanisms of injury present in PM (NAS 9) and develop techniques for PM analysis and
       measurement (NAS 10).  This increase will also support atmospheric measurement  and
       modeling research to evaluate the chemical and physical processes that control the organic
       and inorganic chemical composition of PM. This effort will serve to increase understanding
       of atmospheric processes (including meteorology) and chemistry that affect the secondary
       formation, transport and fate to support NAAQS implementation planning.

•      (-$892,900)  This reduction is to the  PM environmental speciation research program  (the
       "Supersites"  program.).  Since portions  of the PM research program's epidemiology,
       exposure, and implementation research make use of  information provided Supersites,
       $2,000,000 remains in FY 2001 to support a core Supersites program.

«      (-$2,943,600, -2.1.0 workyears)  In order to better align the PM program with the NAS
       recommendations for FY 2001, resources are being diverted from exposure research (NAS
       research areas 1 and 2) to support higher priority work, such as epidemiology. The exposure
       research that would have been conducted with these resources will be deferred until FY 2002
       and includes  longitudinal panel studies of human exposures by susceptible subpopulations
       to PM. There will be  only limited consequences of delaying this research for one year.
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        (-$3,056,500) The 2001 request is $3,056,500 below the 2000 Enacted budget level due to
        Congressional earmarks received during the appropriations process that are not part of the
        2001 President's Request.
        (-$1,690,490, -7.5 workyears)  The R&D program, including infrastructure support costs,
        is spread across eight of the ten goals in the Agency's GPRA/budget structure. Based on a
        review of actual infrastructure utilization under each goal (i.e., utilization of workyears and
        associated PC&B, travel, operating expenses, and working capital fund), adjustments are
        being made across goals to more accurately reflect expectations for use in FY 2001.
Annual Performance Goals and Performance Measures
Reduce Ozone and Ozone Precursors
In 2001     Maintain healthy air quality for 33.4 million people living in 43 areas attaining the ozone
           standard; increase by 1.9 million the number of people  living in areas with healthy air
           quality that have attained the standard; and certify that 5 new areas have attained the 1 -hour
           standard for ozone.
In 2000     Maintain healthy air quality for 33.4 million people living in 43 areas attaining the ozone
           standard.
In 1999     The Regions revoked the 1-hour standard in 10 areas. However, based upon the Circuit
           Court decision regarding the revised ozone standard, the Agency has proposed to reinstate
           the 1-hour standard.
In 1999     Healthy air quality maintained for 33.4 million people living in 43 areas attaining the ozone
           standard.
Performance Measures:

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
FY 1999
Actuals
10
0
1 Draft
FY2000 FY2001
Estimate Request




Areas
Rules
Issued
50
States
Areas Designated to Attainment for the Ozone Standard  0
Additional People Living in Newly Designated Areas
with Demonstrated Attainment of the Ozone Standard
VOCs Reduced from Mobile Sources
NOx Reduced from Mobile Sources
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 1999, 43
           areas with a population of 33.4 million have been redesignated to attainment. 38 areas are
           in nonattainment and 20 areas have had the 1-hour standard revoked. The 1995 baseline for
33,363,000
0
0
1,409,000
898,000
33,363,000
0
0
1,562,000
1,059,000
35,293,000
5
1,876,000
1,659,000
1,189,000
People
Areas
People
Tons
Tons
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            VOCs reduced from mobile sources is 8,134,000 tons and 11,998,000 tons for NOx, both
            ozone precursors.  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 of interest.
Clean Air Partnership Fund
In 2001      EPA will develop the infrastructure to implement the Clean Air Partnership Fund, which will
            demonstrate smart multi-pollutant approaches that reduce greenhouse gases, ah- toxics, soot,
            and smog.
Performance Measures:

Request for Proposals Issued
State, Local, and Tribal Organizations Informed
CAPF Funding Awarded
Baseline:    In 2001,  the Clean Air Partnership Fund  is  to be  established.  Baseline data will be
            developed as grants are awarded.
Reduce Particulate Matter
In 2001      Maintain  healthy air quality for 1.26 million people living in 13 areas attaining the PM
            standards, and increase by 60 thousand the number of people living in areas with healthy air
            quality that have attained the standard.
In 2000      Maintain  healthy air quality for 1.2 million people living in 7 areas attaining the PM
            standards, and increase by 60 thousand the number of people living in areas with healthy air
            quality that have attained the standard.
In 1999      Healthy air quality maintained for 1.2 million people  living in 7 areas attaining the PM
            standards.
In 1999      EPA deployed PM-2.5 ambient monitors  including: mass, continuous, speciation, and
            visibility sites resulting in a total of 1110 monitoring sites.
FY 1999
Actuals
FY2000
Estimate
FY2001
Request
1 1/30/2000
100
25
Percent
Percent
Performance Measures:
National Guidance on PM-2.5 SIP and Attainment
Demonstration Requirements
                                                   FY 1999
                                                   Actuals
                                                   1 Draft
Provide Draft Documents to CASAC for PM NAAQS Review
Cumulative total number of monitoring sites deployed    1110
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  0
Additional People Living in Newly Designated Areas with
Demonstrated Attainment of the PM Standard
PM-10 Reduced from Mobile Sources
PM-2.5 Reduced from Mobile Sources
FY2000
Estimate
                                                                   30-Sep-2000
FY2001
Request
                            Issued
                                                                                               Sites
1,200,000
0
i
0
18,000
13,500
1,260,000
6
60,000
20,000
15,000
1,320,000
6
60,000
22,000
16,500
People
Areas
People
Tons
Tons
                                                  1-30

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Baseline:    As a result of the Clean Air Act Amendments of 1990, 84 areas with a population of 31,114,000 were
            designated non-attainment for the PM-10 standard. Through 1999, 7 areas with a population of 1,2
            million have beenredesignatedto attainment. The 1995 baseline for PM-10 VOCs reduced from mobile
            sources is 878,000 tons and 659,000 for PM-2.5. 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 of interest.       "

Research

Ozone Measurement Research


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

In 2000      Develop tropospheric ozone precursor measurement methods, emissions based air quality models,
            observations based  modeling methods,  and  source  emissions  information to  guide State
            Implementation Plan (SIP) development under the current ozone NAAQS

In 1999      Peer reviewed STAR research grants were awarded that focus on developing methodologies for
            assessing uncertainties in emission inventories and techniques for incorporating GOES satellite data
            to improve regional scale ozone modeling assessments.

Performance Measures:                              FY1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Recommend method for measuring Nox
 (nitrogen oxides and their products)                                  09/30/2000                  method

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

Complete evaluation of Models-3/CMAQ against field
date to demonstrate reliability in
ozone NAAQS attainment planning                                   09/30/2000                  model eval.

In 1999 report on quantifying the uncertainty in
emissions, chemical parameters and
meteorological conditions for trajectory model.

Complete evaluation of the ""Morphecule"" approach;
and complete a requirements analysis for
implementation and testing of the
Morphecule mechanism in Models-3/CMAQ.                                                       09/30/01

Support development of future SIP inventories by
upgrading the Biogenic Emissions Inventory System
(BEIS) Model to include data on how
activities impact emissions of oxygenated VOCs.                                                   upgrade

Baseline:    The management of tropospheric ozone involves extensive modeling of emissions and atmospheric
            processes to identify effective control strategies.  Because ozone is formed from transformation of
            precursors (Le.,  volatile  organic compounds and nitrogen oxides) in the presence of sunlight,  this
            modeling is exceptionally complex. The tremendous variety of sources which affect ozone formation
            (automobiles, trucks, vegetation and other natural sources, industrial and energy production facilities)
            are a key input to the models. Emissions estimates for some sources (i.e nitrogen oxides from utility
            boilers) are quite good; however, estimates for some sources, particularly stationary and mobile area
            and natural sources remain uncertain. Over the last five to seven years, ORD research has focused on
            improving estimates from light duty vehicles, diesel trucks and natural sources. New models (BIES
                                                  1-31

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            and MEASURE) have been produced and are now being used as inputs in the newest versions of the
            regional ozone models.   While improvements have been made, additional research is needed to
            upgrade the models already developed (to add additional natural source species, improve data on
            vegetation distribution across U.S., add module on how road grade effects mobile source emissions)
            and to address other small area sources which have not been addressed.  These gaps need to be
            addressed to improve the existing emissions data used in State Implementation Planning.  Some of
            the most significant advances in air quality modeling have come in our understanding of the chemical
            transformation, chemical interactions, long-range transport, and multiple pollutant interactions.  The
            complex models used to link ambient concentrations to sources require additional validation and
            continued development incorporating state of the science chemical and physical processes data to
            improve their effectiveness.


Ozone Research

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

In 2000      Provide new info, on the atmospheric concentrations, human exposure, and health and environ, effects
            of trop. ozone and incorporate it and other peer-reviewed research findings in an External Review
            Draft of the Ozone AQCD for NAAQS review; complete the final Carbon Monoxide AQCD.

In 1999      Completed a release of Model-3/CMAQ-Version 2 for tropospheric ozone.

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:                              FY1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Final Carbon Monoxide Air Quality Criteria Document.                   1                          document

Add comparative Risk Framework Report

Publish First External Review Draft of Ozone Air
Quality Criteria Document for public comment and
Clean Air Scientific Advisory Committee (CASAC) review.                              1          draft AQCD

Baseline:    Research in peer-reviewed publications is available but must be compiled and evaluated to assure
            complete consideration of relevant information in the standard setting process.  The Clean Air
            Scientific Advisory Committee  is preparing, with support from ORD, to evaluate the next series of
            criteria documents for tropospheric ozone, NOx and SOx.


PM Effects Research

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

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

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

In 1999      Completed three reports on PM: (1) describing research  designed to  test a hypothesis about
            mechanisms of PM-induced toxicity; (2) characterizing factors affecting PM dosimetry inhumans; and
            (3) identifying PM characteristics (e.g. composition) associated with biological responses.
                                                  1-32

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Performance Measures:                               FY 1999        FY2000        FY2001
                                                    Actuals         Estimate        Request

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

Hold CASAC review of draft PM Air
Quality Criteria Document.                                           09/30/2000                  review

Complete longitudinal panel study data collection &
preliminary report on exposure of susceptible
subpopulations to total PM & co-occurring gases of
ambient origin and Ld. key exposure parameters...                       1                           report

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.                              09/30/2000                  data

Reports on (1) role of host susceptibility factors, such as
compromised cardiopulmonary systems, on responses to
PM exposures and (2) data on regional deposited
dose of inhaled ultrafine particles.                                     09/30/2000                  reports

Report on results from Baltimore study evaluating the
cardie^ vascular and immunological
responses of elderly individuals to PM.                                1                           report

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.  Produce a
peer reviewed research plan for population-
based exposures to causal agents.                                                      09/30/01

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.                                                      1           report

Final PM Air Quality Criteria Document completed.                                     1           final AQCD

Baseline:    The standard setting process for criteria air pollutants relies upon evaluation of relevant, peer-reviewed
            researchfindings, which are documented in Criteria Documents produced approximately every 5 years.
            Current health risks suggest tens of thousands of individuals may die each year from PM exposures,
            and many more  become ill.   Recent research has indicated that a number of components or
            characteristics may contribute to PM toxicity. Most research has focused on a few characteristics, such
            as size fraction, transition metals, organic compounds, biologicals and acids. Little research has been
            done on ultrafine particles, peroxides, soot, sulfates and nitrates and more research is needed as well
            on the better studied  components.  Human studies have shown differences in dosimetry among
            population subgroups, such as asthmatics and individuals with small airway disease, and in response
            such as cardiac changes in elderly heart patients who respond  differently than elderly  normal
            individuals.  Recent studies are also showing that patterns of exposure to elderly residents tend to
            follow central-site monitoring levels of fine PM, an important contribution to estimating actual human
                                                  1-33

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            exposure and estimating population health risks. New information is needed to address knowledge gaps
            identified by the scientific and policy communities (including the National Research Council) in many
            areas including atmospheric concentrations,  human exposure, dosimetry,  characteristics of PM
            producing effects, effectsofPM and copollutants on toxicity, susceptible sub-populations, mechanisms
            of toxicity, and evaluation of uncertainty and error in measurements.


PM Measurement Research

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

In 2001     Awarded five (5) grants in June 1999 to establish Paniculate 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 2000     Develop paniculate 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.

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

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

Performance Measures:                               FY  1999        FY2000        FY2001
                                                   Actuals          Estimate        Request
Produce data on the size distribution of particles
emitted from residential wood combustion (fireplace)

Produce improved receptor models (CMB8 and UNMIX)
for measurement of source category
emissions impacts on air quality.                                      2                          models

Complete a preliminary evaluation of Models-
3/Community Multi-Scale Ah- Quality
(CMAQ) for PM, demonstrating its
potential reliability for PM NAAQS attainment planning                 09/30/2000                 evaluation

In 1999 establish five airborne particulate matter (PM)
research centers to conduct integrated studies on PM
exposure, dosimetry and extrapolation
modeling, toxicology and epidemiology.

Publish a report on the size distribution of particles
emitted from diesel trucks under various on-road
conditions to improve source inventories
for NAAQS implementation.                                                        1          report

Publish peer reviewed documentation of the PM
components of Models-3/CMAQ.                                                     1          documentation

Baseline:    The management  of particulate matter involves extensive characterization of current
            conditionsandmodelingof emissions and atmospheric processes to identify effective control
            strategies. At present, few data are available on atmospheric concentrations and significant
            uncertainties exist in the methods and atmospheric models used to link sources of PM and
            precursors to ambient concentrations.  In the  area of  emissions, there are extensive
            uncertainties about the total PM mass emitted and the  size  distribution and chemical
            composition of the primary particles emitted from  a variety  of sources (diesel trucks,



                                                  1-34

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          residential wood combustion, off road vehicles, construction activities, industrial and energy
          production facilities).  There are also 'uncertainties about how best to measure these
          emissions to account for immediate changes in particles which occur in the exhaust plume.
          Emissions of precursors (nitrogen oxides, sulfur oxides and ammonia) are much better
          understood with the exception of ammonia.  In the area of air quality models, the Agency
          has recently released Models-3 to the environmental monitoring community. This modeling
          system takes advantage of the most recent advances in chemical transport, transformation,
          and fate but also enhancement in computer and computer program technologies.  New and
          improved data sets on emissions and  models are needed to support effective State
          Implementation Plan development.


Verification and Validation of Performance Measures

       Performance Measure:  Areas Designated for the 1-hour ozone standard

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

DataSource;
AIRS: State and local agency data from monitoring stations in the State and Local Air Monitoring
Stations (SLAMS).
FREDS:  Data are provided by EPA's Regional offices.

OA/OC Procedures; AIRS: The QA/QC of the national air monitoring program has several major
components: the Data Quality Objective (DQO) process, reference and equivalent methods program,
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. 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: Some potential data limitations: 1) incomplete or missing data (e.g.,  some
values may be absent due to incomplete reporting, and some values subsequently may be changed
due to quality assurance activities); 2) inaccuracies due to imprecise measurement  and recording
(e. g., faulty monitors; air pollution levels measured in the vicinity of a particular monitoring site may
not be representative of the prevailing air quality of a county or urban area); and 3) inconsistent or
non-standard methods of data collection and processing (e.g., non-calibrated and non-operational
monitors). FREDS: Potential data limitations include incomplete or missing data from Regions
                                           1-35

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

       Performance Measure: Reductions in Mobile Source VOC Emissions

Performance Database: AIRS

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

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

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

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

EPA does make estimates of mobile source  emissions, for both past and future years. The most
complete and systematic process for making and recording such estimates is the "Trends" inventory
process executed each year by O AQPS' s Emissions, Monitoring, and Analysis Division (EMD). The
Assessment and Modeling Division is the coordinator within the Office of Transportation and Air
Quality for providing EMD information and methods for making the mobile source estimates. In
addition, EMD's contractor(s) obtain some necessary information directly from other sources, for
example weather data and the Federal Highway Administration's (FHWA) Vehicle Miles Traveled
(VMT) estimates by state. EMD always creates and publishes the emission inventory estimate for
the most recent historical year, detailed down to the county level and with 31 line items representing
mobile sources. Usually, EMD also creates estimates of emissions in several future years. When the
method for estimating emissions changes significantly, EMD sometimes creates revisions to its older
estimates of emissions in years prior to the most recent year, to avoid a sudden discontinuity in the
                                          1-36

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apparent emissions trend. EMD publishes on paper the national emission estimates; county-level
estimates are available electronically.

It is useful to understand just what mobile source information is updated in Trends each year. An
input is updated annually only if there is a convenient source of annual data for the input. Generally,
VMT, the mix of VMT by type of vehicles (FHWA types, not EPA types, however), temperatures,
gasoline properties, and the designs of 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 OMS requests this to be done and is
able to provide the new information in a timely manner.

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


       Performance Measure: Reduction in Mobile Source NOx Emissions

Performance Database: AIRS

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

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

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

Data Limitations: AIRS: Some potential data limitations: 1) incomplete or missing data (e.g., some
values  may be absent due to incomplete reporting, and some values subsequently may be changed
due to  quality assurance  activities); 2) inaccuracies due to imprecise measurement and recording
(e.g., faulty monitors; air pollution levels measured in the vicinity of a particular monitoring site may
not be representative of the prevailing air quality of a county or urban area); and 3) inconsistent or
non-standard methods of data collection and processing (e.g., non-calibrated and non-operational
monitors).
                                           1-37

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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 in several future years. When the
method for estimating emissions changes significantly, EMD sometimes creates revisions to its older
estimates of emissions in years prior to the most recent year, to avoid a sudden discontinuity in the
apparent emissions trend. EMD publishes on paper the national emission estimates; county-level
estimates are available electronically.

It is useful to understand just what mobile source information is updated in Trends each year. An
input is updated annually only if there is a convenient source of annual data for the input. Generally,
VMT, the mix of VMT by type of vehicles (FHWA types, not EPA types, however), temperatures,
gasoline properties, and the designs of 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 OMS requests this to be done and is
able to provide the new information in a timely manner.

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


       Performance Measure: Areas Designated for PM 10 Standard

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

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

QA/QC Procedures: AIRS: The QA/QC of the national air monitoring program has several major
components: the Data Quality Objective (DQO) process, reference and equivalent methods program,
the precision and accuracy of the collected data, EPA's National Performance Audit Program
                                          1-38

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

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


       Performance Measure: Reductions in Mobile Source PM 10 Emissions

Performance Database: AIRS

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

QA/QC Procedures: AIRS: The QA/QC of the national air monitoring program has several major
components: the Data Quality Objective(DQO) process, reference and equivalent methods program,
the precision and accuracy of the collected data, EPA's National Performance Audit Program
(NPAP), system audits, and network reviews. To ensure quality data, the SLAMS are required to
meet the following: 1) each site must meet network design  and siting criteria; 2) each site must
provide adequate QA assessment, control, and corrective action functions according to minimum
program requirements; 3)  all sampling methods and equipment must meet EPA reference or
equivalent requirements; 4) acceptable data validation and reeordkeeping 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.
                                          1-39

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

EPA does make estimates of mobile source emissions, for both past and future years. The most
complete and systematic process for making and recording such estimates is the "Trends" inventory
process executed each year by OAQPS' s Emissions, Monitoring, and Analysis Division (EMD), The
Assessment and Modeling Division is the coordinator within the Office of Transportation and Air
Quality for providing EMD information and methods for making the mobile source estimates. In
addition, EMD's 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 in several future years. When the
method for estimating emissions changes significantly, EMD sometimes creates revisions to its older
estimates of emissions in years prior to the most recent year, to avoid a sudden discontinuity in the
apparent emissions trend. EMD publishes on paper the national emission estimates; county-level
estimates are available electronically.

It is useful to understand just what mobile source information is updated in Trends each year. An
input is updated annually only if there is a convenient source of annual data for the input. Generally,
VMT, the mix of VMT by type of vehicles (FHWA types, not EPA types, however), temperatures,
gasoline properties, and the designs of 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 OMS requests this to be done and is
able to provide the new information in a timely manner.

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


       Performance Measure: Reductions in Mobile Source PM 2.5 Emissions

Performance Database:  AIRS

DataSource:  AIRS: State and local agency data from monitoring stations in the State and Local Air
Monitoring Stations (SLAMS).

QA/QC Procedures: AIRS: The QA/QC of the national air monitoring program has several major
components: the Data Quality Objective (DQO) process, reference and equivalent methods program,
                                           1-40

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

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

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

EPA does make estimates of mobile source emissions, for both past and future years. The most
complete and systematic process for making and recording such estimates is the "Trends" inventory
process executed each year by OAQPS's Emissions, Monitoring, and Analysis Division (EMD). The
Assessment and Modeling Division is the coordinator within the Office of Transportation and Air
Quality for providing EMD information and methods for making the mobile source estimates. In
addition, EMD's 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 in several future years. When the
method for estimatmgemissionschanges significantly, EMD sometimes creates revisions to its older
estimates of emissions in years prior to the most recent year, to avoid a sudden discontinuity in the
apparent emissions trend. EMD publishes on paper the national emission estimates; county-level
estimates are available electronically.

It is useful to understand just what mobile source information is updated in Trends each year. An
input is updated annually only if there is a convenient source of annual data for the input. Generally,
VMT, the mix of VMT by type of vehicles (FHWA types, not EPA types, however), temperatures,
gasoline properties, and the designs of 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 OMS requests this to be done and is
able to provide the new information in a timely manner.

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

      Research
Goal 1 Objective 1
Performance Measure: Complete PM longitudinal study data collection and report exposure
data. Produce a peer reviewed research plan for population-based exposures to causal agents.
Performance Database: Output Measure - Internal Tracking. No database required.
Data Source: N/A
QA/QC Procedures: N/A
Data Quality Review: N/A
Data Limitations: N/A
New/Improved Data or Systems: N/A

Performance Measure: Report on health effects of concentrated ambientPM in health animals
and humans, in asthmatic and elderly humans, and in animal models of asthma and
respiratory infection.
Performance Database: Output Measure - Internal Tracking. No database required.
Data Source: N/A
QA/QC Procedures: N/A
Data Quality Review: N/A
Data Limitations: N/A
New/Improved Data or Systems: N/A

Performance Measure: Final PM Air Quality Criteria Document completed.
Performance Database: Output Measure - Internal Tracking. No database required.
Data Source: N/A
QA/QC Procedures: N/A
Data Quality Review: N/A
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Data Limitations: N/A

New/Improved Data or Systems: N/A


Coordination with Other Agencies

       EPA cooperates with several other federal, state and local agencies in achieving goals related
to ground level ozone and PM. The Agency worked closely with the Department of Agriculture in
developing its agricultural burning policy,  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. The Agency worked with
the Department of the Interior, National Park Service, in developing its regional haze program and
deploying the IMPROVE visibility monitoring network.  The operation  and analysis of data
produced by the PM monitoring system is an example of the close coordination of effort between
the EPA and state and tribal governments.

       EPA is working with the National Aeronautics and Space Administration (NASA) on
technology transfer for using satellite imagery for pollution assessments and transports. The Agency
works  with the  Department of Defense, Department of the Army, on advancing emission
measurement technology. We also work with the National Oceanic and AtmosphericAdministration
(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 public health.
This community-based public education initiative also includes the Centers for Disease Control. In
addition, EPA is working with DOE to identify opportunities in the Clean Cities program.

       Research

       Tropospheric Ozone Research Program. Other than Criteria Document preparation which
is EPA's  responsibility  alone,  the Agency's  core  tropospheric  ozone research program is
coordinated with  the research efforts of others and planned to achieve the most important unmet
research needs that draw upon EPA's expertise.  All exposure and risk management research in this
area is coordinated through the efforts of the North American Consortium for Atmospheric Research
in Support of Air Quality Management (NARSTO), a public/private partnership whose membership
spans government, the utilities, industry, and academia throughout Mexico, the United States, and
Canada.   The remainder of the EPA tropospheric ozone research program focuses on needs
associated with the review of the tropospheric ozone NAAQS and that research not being met by
others.

       Particulate Matter Research Program. The National Research Council PM research plan
is the principal guideline  for the Agency's particulate matter (PM) research program for the next
several years. The plan also affects  other agencies, with Congress expecting the EPA and other
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federal agencies to review their 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 This approach extends participation
in PM research planning to the private sector, in a manner similar to that used successfully for
planning tropo spheric ozone research.

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

       One key opportunity for coordination of research related  to standards implementation is
through expansion of NARSTO,  which has  changed its name (from North American Research
Strategy on Tropospheric Ozone) and expanded its mission to include PM-related efforts. The
NARSTO's Executive assembly  has formally agreed to  re-charter and expand its mission to
encompass the PM issue. 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 (CAA) (42 U.S.C. 7401-7671q)
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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

                                     Clean Air


Objective # 2:  Reduce Emissions of Air Toxics

       By 2010, reduce air toxic emissions by 75 percent from 1993 levels to significantly reduce
the risk to Americans of cancer and other serious adverse health effects caused by airborne toxics.

                                 Resource Summary
                                (Dollars in thousands)

Reduce Emissions of Air Toxics
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears


Air,State,Local and Tribal Assistance Grants:
Air Toxics Federal Standards
Mobile Sources
Air Toxics Research
EMPACT
Air Toxics Characterization
Air Toxics Implementation
Rent, Utilities and Security
Administrative Services
FY 1999 FY 2000
Enacted Enacted
$89,966.2 §95,123.4
$46,345.0 $43,418.8
$21,377.1 $22,650.9
$22,244.1 $29,053.7
371.5 380.5
Key Programs
(Dollars in thousands)
FY1999
Enacted
Other Air Grants $22,244. 1
$24,637.9
$1,736.0
$19,507.0
$171.7
$9,088.2
$10,561.6
$0.0
$0.0
FY 2001 FY 2001 Req. v.
Request FY 2000 Ena.
$132,939.4
$55,154.1
$21,239.4
$56,545.9
385.6

FY2000
Enacted
$29,053.7
$0.0
$2,431.0
$18,121.7
$0.0
$8,452.9
$5,081.7
$847.7
$821.9
$37,816.0
$11,735.3
($1,411.5)
$27,492.2
5.1

FY 2001
Request
$30,845.9
$0.0
$2,504.3
$17,406.4
$490.0
$9,503.7
$5,692.0
$876.5
$852.5
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FY 2001 Request

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

      The Clean Air Act Amendments of 1990 list 188 hazardous air pollutants (HAPs), which are
emitted from a variety of sources, including mobile sources, stationary sources, and area sources.
Emission rates vary across sources and by locale.  For example, the 1993 National Toxic Air
Pollutant Emissions by Source Inventory indicates that mobile sources accounted for approximately
21 percent of major air toxic emissions in urban areas, with point and area sources making up the
rest. For several air toxics (e.g., benzene, 1,3-butadiene, formaldehyde, acetaldehyde, and diesel
particulate matter), mobile sources may contribute from 50 to 70 percent of the total inventory.

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

      Section 112  requires EPA to  develop a national urban  air toxics strategy to ensure
achievement of statutorily mandated cancer and non-cancer risk reduction goals, to identify at least
30 of the most hazardous air pollutants found in the largest number of urban areas, and to potentially
develop MACT or Generally Available Control Technology (GACT) standards for area sources that
emit those 30+ pollutants, and to encourage and work with State and local air pollution programs
to reduce risks in urban  areas.   In addition, the Act requires  EPA, through the Great Waters
Program, to study the effect of air toxics on ecosystems, particularly on important water bodies.
Finally, Title III mandates control of air toxics from combustion sources with emphasis on mercury
and analysis of emissions from steam powered utilities.

      To carry out Clean Air Act requirements, EPA developed an air toxics program comprised
of four  key areas:   (1) characterization of air toxics from stationary and mobile sources; (2)
development of Federal technology-based and risk-based standards; (3) development of state, tribal,
and local capacity to implement air toxics programs; and (4) carrying out research to support the air
toxics program. In carrying out the air toxics program, EPA is now moving from the first phase of
the program, developing technology-based standards, to the second phase, using a risk-based, multi-
media approach.  The second phase focuses on urban areas and large water bodies to address the risk
that remains after the first-phase controls are in place.  In this second phase, the Agency will:

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

•     Look cross-media at toxic air emissions from all sources and at air deposition impacts on the
      environment, as well as releases from traditional air toxics sources and their impacts on air
      quality;
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•     Implement a strategy that will obtain the greatest cumulative reduction in health risks due to
      air toxics, regardless of media, targeting urban areas and maj or water bodies where exposure
      to air toxics is the greatest; and,

•     Continue to develop appropriate emission control strategies for mobile sources to ensure the
      greatest degree of control possible taking into account cost, noise, energy and safety factors,
      and expand these strategies to all mobile sources, including motor vehicles and their fuels and
      land-based nonroad, locomotive, marine and aircraft engines.

      In 2001 EPA will continue to develop and apply assessment tools, develop regulations and
guidance, and implement programs to reduce risk to the public.  The Agency will use existing
regulatory authorities (e.g., the Clean Air Act, the Clean Water Act) or negotiated agreements to
address sources of concern identified through risk assessment.

Characterization of Air Toxics

      EPA will continue to focus on reducing air toxicsemissions through federal technology-based
standards, as required by the Clean Air Act, while addressing the risk remaining from stationary
sources after first-phase controls are in place. For mobile sources, EPA will quantify exposure and
risk and develop cost-effective strategies for further emission control consistent with section 202(1).
EPA is now completing development of the information and tools to broadly characterize the air
toxics problem on a  national scale and measure progress hi improving public health and reducing
environmental impacts. These efforts will allow the Agency to better characterize the risks from air
toxics and to establish a baseline for measuring risk in carrying out the Government Performance
and Results Act (GPRA). For 2001, EPA will continue to invest in improved and innovative
monitoring and modeling,  emissions inventories,  and  risk assessment tools to allow better
characterization of urban and local scale problems and to address multi-media issues and multi-
pathway exposures including a focus on identifying priority HAPs for Indian Country.

      EPA is building on existing state, tribal, and local efforts to create a national monitoring and
inventory program that better characterizes public exposures to hazardous air pollution. In general,
existing monitoring efforts measure concentrations only for a limited number of toxic compounds
and only at limited locations.  EPA will work with states, tribes and local agencies to expand the air
toxics monitoring program in urban  areas and around major water bodies hi order to better
characterize air toxics;  establish a centralized database on toxic compounds hi urban areas including
air, water, and  solid waste; and update and improve the toxics  emission inventories. EPA, in
conjunction with DOD and DOE, will continue to evaluate and advance the development of new and
improved continuous source monitoring technology for emissions of air toxics. EPA will also refine
ongoing work with urban risk models to better estimate the exposure to air toxics through various
media, and the risk to the public resulting from this exposure.

      As a first step, EPA plans to use a national-scale air quality model,  the Assessment System
for Population Exposure Nationwide  (ASPEN), developed as part of the Cumulative Exposure
Project (CEP), as part of its efforts to better characterize the air toxics problem. The CEP estimated
1990 outdoor concentrations of toxic air pollutants across the entire country for all source categories
(e.g., cars, large stationary sources, and smaller sources).  The National  Air Toxics Assessment
project, will use the ASPEN model based on an updated and more detailed emission inventory;
evaluate the model with expanded ambient monitoring information; and, integrate an exposure
model, the Hazardous Air Pollutant Exposure Model (HAPEM), to better  assess the public health
effects.  The application of the ASPEN and HAPEM will provide a .basis for evaluating the
effectiveness of nation's air toxics programs. Through the increased data  collection efforts on air
toxics underway,  EPA also will be focusing on local  hot  spots and providing support in
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environmental justice issues.  The Agency will evaluate and improve local-scale model efforts to
support local evaluations and try to make them more resource efficient.

       EPA also plans to model air deposition emissions on a national scale using REMSAD. The
output from this assessment will be used to provide information to other programs (such as State
programs) which can then use the information for obtaining reductions in the emissions which create
air deposition problems. The plan will also be used to identify national regulatory solutions to the
air deposition problem.

       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 (FF AR) program will provide for the review and screening of potential toxic substances
prior to introduction into motor vehicle fuel supplies. The FFAR registration program will continue
involving approximately 2,000 fuel manufacturers, 3,000 gasoline and diesel fuels registrations and
6,000 additive registrations; approximately 10,000 registration reports will be submitted. EPA will
continue fuel additive health testing for traditional gasolines and gasolines containing metallics such
as MethylcyclopentadienylManganese Tricarbonyl (MMT) and oxygenates such as Methyl Tertiary-
Butyl Ether (MTBE). A large amount of public concern has arisen in various parts of the country
regarding the health effects of various fuels and fuel additives including oxygenates and metallics.
Data currently available is insufficient to make complete risk assessments. This health testing would
allow for a more complete  evaluation of the risk associated with the use of these types of additives
and action could be taken if an unacceptable risk is present. EPA will provide guidance for Phase
II of the reformulated gasoline program. EPA will begin establishing sulfur baselines for all U.S.
gasoline refiners and importers, and producing a new reporting  system for the gasoline sulfur
reduction program.

       By the end of 2001, EPA will make further progress in linking release and exposure
information from the various media programs to determine multi-media toxics exposure and use this
information to develop cross-media strategies to more effectively reduce urban exposures to toxic
emissions.  EPA will continue to identify patterns in exposure to toxics that will be the basis for
coordinated approaches that will most efficiently reduce exposure.

Development of Federal Standards

       EPA will continue to carry out the mobile source standard-setting requirements of Title II of
the Act through several activities. The Agency will continue to assess the need for and the feasibility
of controlling emissions of unregulated toxic air pollutants associated with motor vehicles and fuels.
In 2000, EPA will publish a notice to address the requirements of §202(1) of the Clean Air Act
including proposed standards if appropriate, addressing the control of mobile source hazardous air
pollutants.  This notice will address, at a minimum, benzene and formaldehyde.  As part  of this
process, EPA is examining exposure and potential risk in a number of urban areas as well as on a
nationwide basis. The Agency will complete final action under §202(1) in FY 20001.

       EPA also will implement its toxic control programs for mobile sources through existing
engine certification, compliance, and fuel quality requirements related to emissions standards that
also control toxics. Under these requirements, engine vehicle manufacturers are required to certify
any engine vehicle entered into commerce in the United States as meeting the emission limits set by
EPA.  Fuel refineries  demonstrate compliance  by submitting  survey data to EPA.  These
implementation requirements can be supplemented by state and local action in the form of inspection
and maintenance  programs and local fuel testing.  In addition, EPA will begin the stakeholder
process to plan implementation of the national gasoline sulfur standard.
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      Under Title III of the Clean Air Act, EPA has completed all of the two-, four-, and seven-year
MACT  standards.  Through January 2000, we have proposed  four  10-year standards and
promulgated one. The estimated emission reductions from the rules already promulgated are over
1.5 million tons per year. Once all of the 10-year standards are promulgated, the Agency estimates
an additional 500,000 tons of emission reductions per year,

      In  2001, EPA will focus its efforts on completing the remaining 10-year MACT standards
(covering 94 of the total 174 source categories) and expects to propose the remaining 27 standards.
These include  a standard covering reciprocating internal combustion engines with over  30,000
facilities, a standard covering over 10,000 municipal landfills, and a standard for miscellaneous
organic  hazardous air pollutants which covers 23 different source categories and is expected to
reduce air toxic emissions by over  100,000 tons annually.  In developing the  10-year MACT
standards, EPA will continue to streamline the standard-setting process by building on experience
from earlier standards and by providing greater flexibility for states and tribes that want to achieve
the emission reductions, but in ways that are different from those proposed by EPA.

      EPA will continue the extensive  residual risk analyses for already promulgated MACT
standards to determine if additional  residual risk standards are necessary. These analyses will
require significant source testing to measure the emissions allowed by MACT standards.  These
additional standards will protect the public health by reducing the number of people exposed to
unhealthful levels of hazardous air pollutants and prevent adverse environmental effects.

      In carrying out the 1999 Integrated Urban Air Toxics Strategy, the Agency will initiate the
development of additional national urban area source standards. Area source  standards would be
developed for hazardous air pollutants judged to pose the greatest threat to public health in the
largest number of urban areas.

       As part of its reinvention efforts, the Agency will continue to investigate opportunities in
the residual risk standards and the urban  air strategy for possible coordinated data gathering and
rulemakings efforts that address releases of toxics to air, water, and land and that consider pollution
prevention approaches. To develop these analyses, EPA will bring togethermultiple ongoing efforts
such as: (1) the Persistent Bioaccumulative Toxics (PBT) program;  (2) the Cumulative  Risk
program; (3) the Total Maximum Daily Load (TMDL) program in water; and, (4) urban programs.

      Section 129 of the Clean Air Act requires the establishment of performance standards for four
categories of waste incinerators. These categories include: municipal waste combustors, medical
waste incinerators, industrial and commercial waste incinerators, and other solid waste incinerators.
EPA will promulgate regulatory options for industrial and commercial waste incinerators. EPA will
provide guidance for implementing the rules promulgated for municipal waste incinerators and
commercial and industrial solid waste incinerators.

Air Toxics Implementation

      EPA believes that Federal standards  for controlling emissions of hazardous air pollutants
from area and stationary sources can be most effectively implemented by states, tribes, and  local
agencies.  EPA delegates its implementation authority and provides tools and guidance to ensure
smooth  and consistent implementation.  EPA will publish guidance, provide support in issue
resolution, and conduct outreach activities to help sources comply as well as provide support to
tribes to implement MACT standards on reservation lands. EPA will use emissions testing and,
where feasible, continuous emission monitoring to monitor compliance with MACT and other air
toxics standards. Emissions inventories can be used  in implementing other air toxics rules such as
urban toxics. EPA also will develop capabilities for greater community right-to-know access (e.g.,
using the Internet) to  data that will show the level of toxic compounds in urban areas.
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       EPA will perform studies related to: (1) air toxic deposition into our nation's water bodies;
(2) air toxic emissions from electric utilities; and (3) the urban air toxics problem.  OAR will rely
on research from the Office of Research and Development (ORD) in these areas. EPA will continue
its work to assess and reduce threats posed by air toxic deposition to water bodies and to develop and
implement progress to reduce risk in urban areas.

       EPA will examine exposure of populations to toxic releases from all media and develop
media-specific strategies to reduce emissions and exposuresusrng existing statutory authority, where
necessary and appropriate, and relying on available source characterization information.  These
include §202(1)  of the Act, which gives EPA the authority to set hazardous air pollutant emission
controls for motor vehicles and their fuels, and §21 l(b), which contains requirements for fuels and
fuel additives testing. EPA also will begin developing a multimedia toxics exposure model using
each office's media information. This will allow comparisons of effectiveness of various programs.

       The EPA will continue its efforts to address and prevent  adverse effects of atmospheric
deposition of toxics and nitrogen compounds in the Great Waters. In 2001, EPA will continue to
work with the Office of Water, the Office of Research and Development, and others to develop and
support multi-media regulatory approaches to reduce risks, including enhancing technical tools for
EPA and states to use to assess cross-media transport of pollutants, and facilitating state, tribal, and
regional deposition reduction strategies. Also in 2001, the EPA will develop an action plan to assess
atmospheric deposition on a national basis.  This action plan will include: modeling atmospheric
deposition emissions on a national level; examining the rules or activities in  place to address
impairment caused by atmospheric deposition; and determining what, if any, additional actions are
necessary to address impairment caused by atmospheric deposition.

       EPA published the Integrated Urban  Air Toxics Strategy hi 1999. This strategy identified
the hazardous air pollutants that pose the greatest threat hi the largest number of urban areas and the
area source categories that emit these pollutants. Implementation of this strategy assures that 90
percent of the emissions from urban area sources are subject to regulation. The strategy contains a
schedule of activities to ensure:  a substantial reduction hi noncancer health risk; a 75 percent
reduction in cancer incidence; a focus on disproportionate risk; highlighting mobile source emissions
contributions;  and encouraging state, local,  and tribal programs to develop strategies for their
communities. In 2000 and 2001, EPA will continue to  improve our national characterizations of
risk from air toxics in urban areas and work closely with states, local, and tribal governments to
develop or strengthen programs to reduce cumulative risk.

       In addition to the studies being performed under the Clean Air Act, EPA will work to reduce
the emissions and lower the risk associated with PBTs. The air program will work to achieve these
reductions through regulatory and prevention-based measures. OAR will develop tools to evaluate
the impact of PBTs and the impact of reductions hi PBTs on human health and the environment.
This effort will  be coordinated across the Agency with the Office of Prevention, Pesticides, and
Toxic Substances and others.

       Research

       EPA's air toxics research supports the investigation and assessment of the risks posed by
toxic air pollutants and their mixtures from  major stationary sources, urban area sources, mobile
sources and indoor sources. The focus of the air toxics research program in FY 2001 will be on
developing tools to perform integrated multimedia assessments on national, regional, and urban/local
scales. The Agency also will place a greater emphasis on research that will focus on the exposures
and risks from indoor air and mixtures, and risks to susceptible populations.
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       The air toxics research program contributes to the strategic objectives of making the air safe
and healthy to breathe, especially for those with respiratory disease, and protecting the environment,
by improving the scientific understanding of air toxics health risks and ihe effectiveness of risk
reduction strategies. Research conducted under the program provides critical scientific information
to Agency program offices and Regions necessary to develop, implement, and evaluate risk
management  options.  In addition,  the program provides improved tools for environmental
assessment so that  information developed by the Agency arid  others is more easily used and
understood.

       For F Y 2001, the Agency has requested resources for important air toxics research that will
provide new information and methods to estimate human exposure and health effects from high
priority urban air toxics, and allow EPA to complete health assessments for the highest priority
hazardous air pollutants, including fuel/fuel  additives.   This research furthers the objective of
reducing air toxics emissions (and thereby reducing associated adverse health effects) by enabling
the Agency to identify and quantify airborne toxics and their potential health risks.

       Other activities planned for F Y 2001 include evaluating cancer and non-cancer health effects
from air toxics exposures,  improving methods for extrapolations of health data from animals to
humans to improve our understanding of health effects and risk assessment methods, and developing
techniques to characterize  health outcomes associated with urban toxics from long-term, multi-
disciplinary studies.

       Research planned for FY 2001 also includes beginning work on developing an urban scale
air toxics human exposure model for community-based assessment for air toxics with known
emissions and air chemistry to assist in evaluating emission control strategies. In addition, research
will be conducted on clinical and animal studies to determine health effects of exposure to mixtures
of pollutants, especially those common to urban environments. This will aid in understanding the
mechanisms by which mixtures of air pollutants produce adverse health effects.

       The Agency will evaluate health endpoints, (e.g. respiratory toxicity,  immunotoxicity,
neurotoxicity and reproductive toxicity), chronic mortality and morbidity, and risks to potential
sensitive subpopulations, to determine if urban mixtures induce or exacerbate sensitivity. Two other
activities that will continue are:   1) research to  determine  factors associated  with micro-
environmental exposures to air toxics (e.g., associated with traveling in an automobile) which are
important to modeling and assessing personal-scale exposures; and 2) development of integrated
control and pollution prevention approaches for source categories (e.g. utilities, manufacturing
facilities, waste combusters) which are having the greatest impact on urban air quality.

       Air pollution from mobile sources has been estimated to account for a significant portion of
the nationwide emissions of air toxics, ozone precursors (volatile organic compounds and nitrogen
oxides), and carbon monoxide. In the emissions characterization area, constantly changing fuels and
fuel additives (e.g., oxygenates) and vehicle and engine designs require new testing to determine the
effect on emissions rates of CO and toxic compounds. Continuing activities in this area include;
1) characterizing toxics emissions from mobile source combustion of alternative fuels under both
real-world and test chamber conditions; 2) providing limited technical support, including the
development and application of approaches for assessing cumulative exposures to air toxics from
combustion of new fuels and fuel additives; and 3) characterizing emissions and attendant risks
associated with new fuels and fuel additives. Ongoing consultation on risk assessments and waiver
requests for fuels and fuel additives, review of industry data, and  assessments comparing the risks
and benefits of new fuels and fuel additives to conventional fuels will support the control of
hazardous air pollutants (HAPs) from motor vehicles.
                                           1-51

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FY 2001 Change from FY 2000 Enacted

EPM

•      (+$ 10,600,000) The Agency continues to retarget resources from setting MACT and residual
       risk standards to better characterizing the total environmental toxic risk, particularly in urban
       areas.  The goal of this  shift is to  provide better information to communities on how
       individual factors in urban areas cumulatively affect public health and to make cross-media
       decisions to target the worst factors first.  Thus, both nationally and locally, we would be
       moving toward programs and policies that are focused primarily on human and ecological
       risk reductions, as opposed to solely emission reductions.  The Agency will use a multi-
       media, multi-pollutant approach to reducing risk.  The Agency believes such an approach
       will produce greater, less costly risk reductions than would otherwise occur from following
       a media-by-media, pollutant-by-pollutant statutory agenda for air toxics.  EPA will also
       increase resources for  developing tools  and guidance  for  the  smooth  and effective
       implementation of standards. These tools will include published guidance and support in
       resolving rule implementation issues.  EPA will also expand outreach activities to help
       sources comply.
S&T
       (-$475,000)  Funding to support a National Research Council study of the Clean Air
       Program, a Congressional earmark in 2000, will not be continued.
STAG
       (+$25,700,000) Clean Air Partnership Fund. The Fund will provide an opportunity for cities,
       states, and tribes to partner with the private sector, Federal government and each other to
       provide healthy clean air to local citizens. The fund will demonstrate smart multi-pollutant
       strategies that reduce greenhouse gases, air toxics, soot, and smog to protect our climate and
       our health.

       The Clean  Air Partnership Fund will: be  a catalyst for innovative local, state, private
       partnerships for  air pollution reductions; demonstrate  locally managed, self-supporting
       programs that achieve early integrated reductions in soot, smog, air toxics, and greenhouse
       gases; be used to capitalize local revolving funds and other financial mechanisms that
       leverage the original federal investment and result in greater resources for air pollution
       reduction; and, stimulate technology innovation.

       The Clean  Air Partnership will fund more optimal, multi-pollutant control strategies.
       Currently, businesses and municipalities often invest in short-term, single-pollutant control
       approaches. The Partnership will encourage many industries, such as electric utilities and
       the transportation sector,  to pursue comprehensive criteria pollutant reductions while
       improving  energy and  operation efficiencies,  thereby  also  reducing greenhouse  gas
       emissions.  The Clean Air Fund will provide these needed resources through mechanisms
       that promise significant leveraging of non-Federal resources. It is expected that the Fund
       will support the  development of local revolving funds which  will provide  low-interest
       loans, matching funds, public-private partnerships, and other capitalization mechanisms.
                                           1-52

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       Research

S&T

       While overall there are minor changes in the air toxics resource levels, there are some
redirections in the research program reflected in the discussion below.

•      (+$2,939,800, +3.5 workyears) The request includes an increase for research to define urban
       air toxics health risks.  Included under this research will be determinations of dose-response
       relationships and the range of non-cancer  health effects of high priority air toxics under
       various  exposure scenarios.   Methods research will be conducted on mobile source
       emissions. Exposure modeling and characterization will combine microenvironmental and
       ambient air toxics monitoring methods and modeling tools for the development of personal
       to urban scale residual risk assessments. This work includes developing and validating a
       model for urban to regional scale assessments of multiple source exposure impacts over
       varying  time scales and climate conditions for specific high priority urban air toxics.

       (+$632,800, -0.1 workyears) This increase is for research supporting air toxics emissions
       characterization, controls and prevention. The goals of this research are to develop improved
       techniques to characterize hazardous air pollutant emissions from outdoor and indoor sources
       and to use these techniques to better understand the relative contribution of specific sources
       to actual human exposure, as well as to identify innovative low-cost approaches to control
       or prevent hazardous air pollutant (HAP) emissions. The information generated through this
       research will support improved characterization of risks posed by HAPs and development
       of future risk management strategies to reduce exposure.

•      (-$816,500, +1.0 workyears) The R&D program, including infrastructure support costs, is
       spread across eight of the ten goals in the Agency's GPRA/budget structure.  Based on a
       review of actual infrastructure utilization under each goal (i.e., utilization of workyears and
       associated PC&B, travel, operating expenses, and working capital fund), adjustments are
       being made across goals to more accurately reflect expectations for use in FY 2001.

       (-$924,400, -1.0 workyears) In FY 2001, the Request does not include resources to support
       Requests  for Applications  (RFAs) addressing  long-term urban air toxics issues.   This
       research has focused on characterizing  the risks posed by individual and mixtures of air
       toxics, and identifying how the most  significant sources of urban  air toxics and their
       contribution to risk can be quantified. These resources are being redirected to support RF A's
       in other high priority research programs.

       (-$2,547,000) The 2001 request is $2,547,000 below the 2000 Enacted budget level due to
       Congressional earmarks received during the appropriations process that are not part of the
       2001 President's Request.


Annual Performance Goals  and Performance Measures

Reduce Air Toxic Emissions

In2001    Air toxics emissions  nationwide from stationary and mobile sources combined  will be
          reduced by 5% from 2000 (for a cumulative reduction of 35% from the 1993 level of 4.3
          million tons per year.)

In 2000    Air toxics emissions  nationwide from stationary and mobile sources combined  wijl be
          reduced by 3% from 1999 (for a cumulative reduction of 30% from the 1993 level of 4.3
          million tons.)


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In 1999     Air toxics em issions nationwide from stationary and mobile sources combined were reduced
           by 12% from 1998 (for a cumulative reduction of 27% from the 1993 level of 4.3 million
           tons.)
Performance Measures:
Combined Stationary and Mobile Source
Reductions in Air Toxics Emissions
                                       FY 1999
                                       Actuals
                                       12
FY2000
Estimate
FY2001
Request
Baseline:   In 1993, the last year before the MACT standards and mobile source regulations developed
           under the Clean Air Act were implemented, stationary and mobile sources emitted 4.3
           million tons of air toxics. Air toxics emission data are revised every three years to generate
           inventories for 1993,1996,1999, etc. Reductions are estimated from regulatory controls in
           the years between the three year updates.

State Implementation of MACT Standards

In 2000     Ensure state implementation of 100% of promulgated MACT standards for major sources.
Performance Measures:
                                       FY 1999
                                       Actuals
FY2000
Estimate
FY2001
Request
Baseline:   Following passage of the 1990 Clean Air Act Amendments, EPA identified 174 source
           categories for which MACT standards should be promulgated. As MACT standards are
           promulgated each year, the number becomes the baseline for the percentage of MACT
           standards to be implemented.

Promulgate Technology Based Standards

In2001
In 2000
Propose 27 technology based standards for control of hazardous air pollutants for the 10 year
bin.

Promulgate technology based standards for source categories of industrial facilities posing
the greatest risks.
FY 1999
Actuals

16


FY 2000
Estimate
5



FY2001
Request


25
27

Sources
Sources
Notices
Proposed
In 1999    Promulgated 16 MACT Standards for 26 source categories.

Performance Measures:


Number of MACT Standards Promulgated

Promulgate 12 MACT Standards for 24 source categories 16

Federal Register Publication of Final MACT Standards

Number of proposed MACT standards.

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

Research

Human Exposure and Health Effects Methods

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

In 2000    Provide methods to estimate human exposure and health effects from high priority urban air
           toxics, and complete health assessments for the highest priority hazardous air pollutants
           (including fuel/fuel additives).
                           Percent
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In 1999     Two reports were  completed  on  pharmocokinetic  models for  cross-species and
            cross-pollutant extrapolation and extrapolation across concentration and time to support
            health risk assessment for acute exposures.

In 1999     The noncancer RfC and RfD assessment document for benzend is in the final stage of issue
            resolution. It is currently scheduled for completion in the first half of FY 2000.

In 1999     Dose-response assessments for dichloropropene, cadmium, EGBE,  and acetonitrile were
            completed in FY 1999.  The fifth assessment, for vinyl chloride, was delayed and will be
            completed in FY 2000. This delay will not have an impact on achievement of the strategic
            objective.

Performance Measures:                               FY 1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

Complete four toxkological reviews and assessments
(RfC, RfD, cancer unit risks) of high
priority to the Air Program                                                                       Assessment

Benchmark dose software available for public use.

Benzene RfD and RfC, Diesel, 1-3
Butadine Mobile Source Assessments

Produce process and framework for incorporating
Acute Reference Exposure (ARE) values into IRIS                      09/30/2000                  framework

Submit for Agency consensus review three toxicological
reviews and assessments (RfC, RfD, cancer unit
risks) of high priority to the Air Program.                              5                           assessments

Report on extrapolation across concentration and time
to support health risk assessment for acute exposure

Validation of a physiologically-based pharmocokinetic
model for neurotoxic air toxics,
including animal and human data.                                                      1           model validafn

Complete for external review three draft toxicological
reviews and assessments of high priority to the
Air Program to include fuel/fuel additives.                                              3           reviews

Baseline:    The exposures -and cancer and non-cancer health risks from air toxics exposures are largely
            speculative. The speculation is due to limitations in data on the exposures of humans to air toxics
            and uncertainty in the identification of hazard and health effects from the  exposures. Actual
            human exposure and health effects data are available for very few air toxics  thus extrapolations
            are necessary from animal toxicology studies, or from human exposure modeling, to estimate
            risks. By the end of FYO1, cancer and/or noncancer dose response assessments will be completed
            for 12 of the 33 chemicals identified as high priority urban air toxics.


Air Quality Model Incorporating Air Toxics

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

In 2000     Develop an air quality model incorporating air toxics as their air chemistry and emissions become
            known, and source emissions and control information for both mobile and stationary sources to
            guide cost-effective risk management options.

In 1999     A preliminary version of the urban scale Models-3/Toxics Model for a community-based human
            exposure assessment for air toxics was scheduled to be completed in October 1999.
                                                  1-55

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Performance Measures:                            FY 1999       FY 2000        FY2001
                                               Actuals        Estimate        Request

Complete four toxicological reviews and assessments
 (RfC, RfD, cancer unit risks) of
high priority to the Air Program                                                            Assessment

Begin evaluation of the recently dev. urban scale
Models-3/Toxics Model, to be used for community-
based human exposure assessment for air toxics,
using data sets for mercury and semi-volatile compounds. 09/30/2000                              evaluation
   •t
Complete operational evaluation of
Models-3/CMAQ for mercury.                                                   1          evaluation

Baseline:    Risk management efforts will be refocused as the urban air toxics program moves in the next few years
           to reduce health risks hi cities, and residual risk assessments are used to target additional controls beyond
           Maximum Achievable Control Technology requirements. Current emissions and air quality models are
           limited in their ability to support effective control strategy development due to the complexity of air
           chemistry and physical processes  and the multitude of emissions sources for many hazardous air
           pollutants. Available data on air toxic emissions has recently been compiled to support development of
           the urban air toxics strategy. Overall, data for large stationary sources are better than the data which exist
           for area sources (automobiles, trucks, off-road vehicles, automobile refinishing shops etc.) Improvements
           in area source data will be critical to future development of standards which adequately protect human
           health from all sources of the most hazardous toxic pollutants. Similarly, there are technologies available
           to reduce emissions from most major sources; however, in many cases, the approaches available for small
           area sources are quite costly due to the low concentrations emitted. Research on innovative prevention
           and control approaches which can reduce costs are needed for these sources.



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

QA/QC Procedures: Since the NTI is primarily a database designed to house information from other
primary sources, most of the QA/QC efforts have been to identify duplicate data from the different
data sources and to supplement missing data. There  has  been no effort to validate information
collected from other databases, but a significant effort is underway to determine the best primary
source data when a discrepancy among data sources is found. Mobile source data are validated by
using speciated test data from the mobile source emission factor program, along with peer-reviewed
models which estimate national tons for the relevant year.

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



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

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


Coordination with Other Agencies

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

       EPA is  also  forming  a  partnership with the Department  of Defense  (POD) 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 Office of Safety Health Administration
(OSHA) to coordinate the development of EPA and OSHA standards, where necessary, to ensure
that MACT standards designed to reduce air toxic emissions do not inadvertently increase worker
exposures.  EPA also works closely with other health agencies such as the CDC and the National
Institute of Environmental Health Sciences on health risk characterization.  To assess atmospheric
deposition and characterize ecological  effects,  EPA works with  the  National  Oceanic  and
Atmospheric Administration (NOAA) and the U.S. Fish and Wildlife Service,

       The Agency has worked extensively with the Department of Health and Human Services
(HHS) on the National Health and Nutritional Evaluation Study (NHANES) to identify mercury
accumulations in humans. We have also worked  with the Department of Energy on the 'Fate of
Mercury' study to characterize mercury transport and traceability in Lake Superior.
                                          1-57

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       Research

       EPA's  air toxics research  is  coordinated  with  other  federal agencies through the
Subcommittee on Air Quality Research of the Committee on Environment and Natural Resources
Research (CENR). In addition, the Agency is developing an Air Toxics Research Strategy which is
expected to undergo external peer review, e.g., EPA's Science Advisory Board (SAB), in.2000.


Statutory Authorities

Clean Air Act Title I,  Part A and Part D, Subparts 3 and 5 (42 U.S.C. 7401-7431, 75l2-7512a,
7514-7514a) (15 U.S.C. 2605)

Clean Air Act, Title E, Section 202 (1)(2)

Clean Air Act, Title IV (42. U.S.C. 7641-7642)
                                          1-58

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                          Environmental Protection Agency

           FY 2000 Annual Performance Plan and Congressional Justification

                                     Clean Air


Objective # 3:  Attain NAAQS for CO, SO2, NO2, Lead

      By 2005, improve air quality for Americans living in areas that do not meet the NAAQS for
carbon monoxide, sulfur dioxide, lead, and nitrogen dioxide.

                                 Resource Summary
                                (Dollars in Thousands)

Attain NAAQS for CO, SO2, NO2, Lead
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Oil Spill Response
Total Workyears
FY1999
Enacted
$40,071.7
$15,163.0
$113.2
$24,794.5
$1.0
165.7
FY2000
Enacted
$44,103.4
$17,664.0
$509.9
$25,929.5
$0.0
194.2
FY 2001 FY 2001 Req. v.
Request FY2000Ena.
$39,111.4
$19,176.0
$140.1
$19,795.3
$0.0
193.9
($4,992.0)
$1,512.0
($369.8)
($6,134.2)
$0,0
(0.3)
                                   Key Programs
                                (Dollars in thousands)

Air,Statc,Local and Tribal Assistance Grants: Other Air Grants
Mobile Sources
Stationary Sources
Administrative Services
Regional Management
FY1999
Enacted
$24,794.5
$110.0
$14,64L4
$0,0
$0.0
FY2000
Enacted
$25,929.5
$129.9
$16,566.5
$162,0
$28.8
FY2001
Request
$19,795.3
$140.1
$17,812.9
$167.3
$191.3
FY 2001 Request

      Under the Clean Air Act, EPA must set NAAQSs for pollutants that endanger public health
and the environment. These pollutants include CO, SO2, NO2, and lead.- States, tribes, and local
agencies must develop clean air plans to meet the standards.  These plans take into account the
                                         1-59

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results of Federal pollution control  measures (e.g., motor vehicle emission standards). Each
pollutant and the programs that reduce it are described separately below.  This objective also
includes cross-pollutant preconstruction and operating permit programs.

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 low ambient
concentrations of CO is most serious for those who suffer from cardiovascular disease. Healthy
individuals are also affected, but only at higher levels of exposure. 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.

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

       EPA  has set standards for CO and currently assists states, tribes, and local agencies in
implementing strategies to reduce CO pollution and maintain compliance with the standard. CO
tends to be a local pollution problem and is not transported from one area to another. Clean air plans
for CO include many mobile-source related programs such as auto tailpipe standards and oxygenated
gasoline. There has been a significant downward trend in concentrations and emissions of CO.
Approximately 35 areas, including unclassified areas, still do not meet the CO air quality standard
set to protect public health.

       In 2001 EPA will continue to assist  states, tribes, and  local agencies in implementing
strategies to  reduce CO pollution and maintain compliance with CO standards. The Agency will
carry out mobile source programs (such as oxygenated fuel and reformulated gasoline) and assist
in implementing attainment and maintenance plans. The Federal auto emission standards program
and state vehicle inspection/maintenance programs will  continue to assure CO control. EPA will
continue providing technical and programmatic guidance for implementing oxygenated fuels
programs and will provide information to the scientific community and  stakeholders  on the
environmental aspects of the use of oxygenated fuels, and make recommendations to improve the
program. As a result of these efforts, EPA expects an additional 12 areas to attain theNAAQS for
CO in FY 2001.

       EPA is currently reviewing the NAAQS for CO and plans to propose to revise or reaffirm the
standard in 2000, with promulgation following in 2001.

Sulfur Dioxide

       SO2 belongs to the family of gases called sulfur oxides (SOJ. These gases are formed when
fuels (mainly coal and oil) containing sulfur are burned, and during metal smelting and other
industrial processes. The major health concerns associated with exposure to high concentrations of
SO2  include affects 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 SO2 can
react to form fine particles which 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,
                                           1-60

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accelerated corrosion of buildings and monuments, and reduced visibility. Approximately 31 areas
still do not meet the NAAQS for SO2.

      EPA will continue to ensure that all areas are in compliance with the standard and will review
the standard, as the Clean Air Act mandates, to ensure that it adequately protects human health.  The
courts have remanded the most recent review of the SO2 standard for further explanation of the
decision to reaffirm.  Final notice on the standard and the associated guidance is scheduled to be
completed no later than the end of 2000. The final intervention level policy will give 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 2001, EPA will
provide guidance to states and tribes on implementing the intervention level program.  EPA will
increase efforts to reduce the more pervasive sulfur oxides through the acid rain, paniculate matter,
and regional haze programs that are described under those objectives.  These efforts will result in
2 additional areas coming into compliance with the SO2 NAAQS in FY 2001.

Nitrogen Dioxide

      NO2 belongs to a family of highly reactive gases called nitrogen oxides. Nitrogen oxides
form when fuel is burned at high temperatures, and result primarily from motor vehicle exhaust and
stationary sources such as electric utilities and industrial boilers. Ambient concentrations of nitrogen
oxides can affect human health and ecosystems and also serve as precursors to ozone and particulate
matter.  Nitrogen oxides react with volatile organic compounds in the presence of sunlight to form
smog. Nitrogen dioxide can be converted into fine nitrate aerosols, a constituent of fine particles
(PM2 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.  Nitrogen oxides irritate the lungs and lower resistance to respiratory
infections such as influenza. They can also have adverse effects on both terrestrial and aquatic
ecosystems, contributing to acid rain and eutrophication in coastal waters.

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

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

Lead

      Exposure to lead mainly occurs through inhalation of air and ingestion of lead in food, paint,
water, soil, or dust. Lead accumulates hi 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 is currently less
of a problem.  Today, smelters and battery plants are the  major sources of lead in the air.
Approximately eight areas still do not meet the NAAQS for lead.
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       EPA will continue a relatively low level of existing work, emphasizing the few nonattainment
areas near smelters. Mandating the use of unleaded gasoline will continue to be the most effective
way to prevent airborne lead.  An additional 2 areas will come into compliance with the NAAQS
in FY 2001.

Permits/New Source Review

       EPA will make revisions to Part 70 operating permit rules to streamline permit revision
procedures and will provide technical support to Regions, states, tribes and local agencies on permit
program revisions.  By early 2001,  EPA intends, with assistance from state and local permitting
authorities, to complete the first round of Part 70 permit issuances. In 2000, EPA will promulgate
the new source review reform rules which simplify the new source permitting process. Beginning
in 2001, EPA will enter an intensive period of training and technical support activities to ensure
smooth implementation of this major regulatory reinvention effort.  Also, beginning in 2001 and
continuing for several years thereafter,  the  Agency  will survey the permitting program
implementation efforts and the results of industry-conducted monitoring on compliance status. The
Agency will continue  and expand training  and technical  support efforts to  ensure smooth
incorporation into operating permits of the Compliance Assurance Monitoring, MACT, and other
rules becoming effective in 2001 and beyond.  The Agency also will continue to be involved in and
expand, as needed, efforts to reform and streamline permitting programs.


FY 2001 Change from FY 2000 Enacted

EPM

•      (+$800,000) Additional funding is required for the personnel costs for the program.

S&T

•      (-$3 80,000) Funding to support aNational Research Council study of the Clean Air Program,
       an Congressional earmark in 2000, will not be continued.


Annual Performance Goals and Performance Measures

Reduce CO2, SO2, NO2, Lead

In 2001      Maintain healthy air quality for 28.8 million people living in 62 areas attaining the CO, SO2,
           NO2, and Lead standards, and increase by 16.4 million the number of people living in areas
           with healthy air quality that have attained the standard.

In 2000     Maintain healthy air quality for 27.7 million people living in 46 areas attaining the CO, SO2,
          NO2, and Lead standards, and increase by 1.1 million the number of people living hi areas
           with healthy air quality that have attained the standard.

In 1999     Healthy air quality for 22.8 million people living in 33 areas attaining the  CO, S02, NO2,
           and Lead standards was maintained, and 4.9 million more people are living in areas with
           healthy air quality that have attained the standard.

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

Performance Measures:                           FY 1999        FY2000       FY2001
                                             Actuals        Estimate       Request
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Total Number of People Living in Areas Designated in
Attainment with Clean Air Standards for
CO, SO2, NO2, and Pb                          27,718,000     28,814,000      45,245,000  People

Areas Designated to Attainment for the CO,
SO2, NO2, and Pb Standards                      14            16            18         Areas

Additional People Living in Newly Designated Areas with
Demonstrated Attainment of the
CO, S02, N02, and Pb Standards                  4,918,531      1,096,000       16,431,000  People

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

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

Baseline:   For SO2, Lead and CO,  107 areas with a population of 65,573,000 were classified as
          non-attainment or were unclassified in  1990. Through 1999, 46 of those areas with a
          population of 27.7 million have been redesignated to attainment. The 1995 baseline for
          mobile source emissions for CO was 70,947,000 tons.


Verification and Validation of Performance Measures

       Performance Measure: Areas Redesignated/ Areas Maintaining Healthful Standards for CO.
       SO2. NO2. and Lead                    .

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

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

OA/OC Procedures: AIRS: The QA/QC of the national air monitoring program has several major
components: the Data Quality Objective (DQO) process, reference and equivalent methods program,
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. FREDS: No formal QA/QC procedures.

Data Quality Review: AIRS: No external audits have been done in the last 3 years. FREDS: None
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Data Limitations: AIRS: Some potential data limitations: 1) incomplete or missing data (e.g., some
values may be absent due to incomplete reporting, and some values subsequently may be changed
due to quality assurance activities); 2) inaccuracies due to imprecise measurement and recording
(e.g., faulty monitors; air pollution levels measured in the vicinity of a particular monitoring site may
not be representative of the prevailing air quality of a county or urban area); and 3) inconsistent or
non-standard methods of data collection and processing (e.g., non-calibrated and non-operational
monitors).

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

It is useful to understand just what mobile source information is updated 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 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 OMS requests this to be done and is
able to provide the new information in a timely manner.

FREDS: Potential data limitations include incomplete or missing data from Regions.

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

Coordination with Other Agencies

      EPA cooperates with several other federal, state and local agencies in achieving goals related
to the standards for CO, SO2, N02, and lead.  EPA, the Department of Transportation (DOT), and
the Army Corps of Engineers work with state and local agencies to help them manage growth and
urban sprawl.  EPA also works with DOT, local governmental organizations and non-profit groups
on the promotion of transportation alternatives with the aim of reducing mobile source emissions
by reducing total vehicle miles traveled.  The Department of Energy (DOE) and DOT are funding
research proj ects to better understand the size, source, and causes of mobile source pollution. DOT's
mobile source projects include Transportation Analysis and Simulation (TRANSIMS) and other
                                          1-64

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transportation modeling projects.  DOE is funding these projects through the National Renewable
Energy Lab. EPA also works closely with DOE on refinery cost modeling analyses for EPA's clean
fuel programs. For mobile sources program outreach, the Agency is participating in a collaborative
effort with DOT's FHWA and Federal Transit Administration 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. In
addition, EPA is working with DOE to identify opportunities in the Clean Cities program.

Statutory Authorities

Carbon Monoxide
Clean Air Act, Titles I and II; Motor Vehicle Information and Cost Savings Act and the Alternative
Motor Fuels Act of 1988 (AMFA)

Sulfur Dioxide and Permitting
Clean Air Act, Titles I and V

Nitrogen Dioxide
Clean Air Act, Titles I and II

Lead
Clean Air Act, Titles I and II
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                           Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

                                      Clean Air
Objective #4: Acid Rain

      By 2010, reduce ambient sulfates and total sulfur deposition by 20-40 percent from 1980
levels due to reduced sulfur dioxide emissions from  utilities and industrial sources.  By 2000,
ambient nitrates and total nitrogen deposition will be reduced by 5-10 percent from 1980 levels due
to reduced emissions of nitrogen oxides from utilities and mobile sources.


                                 Resource Summary
                                 (Dollars in thousands)

Acid Rain
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
FY 1999
Enacted
$18,136.2
$10,526.5
$4,002.1
$3,607.6
86.6
FY2000
Enacted
$19,632.8
$11,231.3
$4,332.5
$4,069.0
90.0
FY 2001 FY 2001 Req. v.
Request FY 2000 Ena.
$20,293.5
$12,685.9
$4,000.0
$3,607.6
88.3
$660.7
$1,454.6
($332.5)
($461.4)
(1.7)
                                    Key Programs
                                 (Dollars in thousands)

Air,State,Local and Tribal Assistance Grants: Other Air Grants
Acid Rain -Program Implementation
Acid Rain -CASTNet
Administrative Services
FY 1999
Enacted
$3,607.6
$10,309.4
$4,000.0
$0.0
FY2000
Enacted
$4,069.0
$10,606.3
$4,000.0
$208.2
FY2001
Request
$3,607.6
$12,287.1
$4,000.0
$218.4
                                          1-66

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FY 2001 Request

      Emissions of sulfur dioxide (SO2, mostly from power plants and other industrial sources) and
nitrogen oxides (NOX, mostly from power plants and motor vehicles) react in the atmosphere and fall
to earth as acid rain, causing acidification of lakes and streams and contributing to the damage of
trees at high elevations. Acid rain also accelerates the decay of building materials and paints, and
contributes to degradation of irreplaceable cultural objects such as  statues and sculptures.  NOX
emissions  are also a major precursor of ozone, which affects public health and damages crops,
forests, and materials. NOX deposition also contributes to eutrophication of coastal waters, such as
the Chesapeake and Tampa Bays. Additionally, before falling to earth, SO2 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, most notably in
national parks.

      The Acid Rain Program, authorized under Title IV of the Clean Air Act Amendments of
1990, is primarily focused on SO2 and NOX emissions from electric utilities, and has numerous
statutory deadlines. Reductions in NOX emissions from mobile sources are required under Title II
of the Clean Air Act. The U.S. is also committed to reductions in SO2 andNOx emissions under the
US-Canada Air Quality  Agreement of 1991. EPA's Acid Rain  Program uses  market-based
approaches to achieve these emission reductions.  The Program provides affected sources with
flexibility to meet required emission reductions at the lowest cost (both to industry and government).
The SO2 component features tradeable units called "allowances" (1 allowance = 1 ton of SO2),
accurate and verifiable measurements  of emissions, and a cap on total  emissions. The Acid Rain
Program continues to be recognized as a model for flexible and effective regulation both in the U.S.
and abroad.

      Major program activities include measurement, quality assurance, and tracking of SCs, NOX,
and CO2 emissions, as recorded by  Continuous Emissions Monitors at more than  2.000 electric
utility units; conducting  field  audits  and certifying emissions  monitors; operation of an SO2
                          Title IV-Utility
         SO2 and  NOX  Emissions Reductions
              20-,

            C/3
                   17.5
  SO Emissions
                          16.3     15.9
                       Without me IV _ H 137
                                                        WthTitielV
                                   NOX Em'ssions
                 1980   1985
1990    1995   2000   2005   2010

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 allowance tracking system to record transfers of emission allowances between different parties;
 reconciliation of emissions and allowances at each unit to ensure compliance; and processing of
 permit actions.
        Phase I of the Program began in 1995 for 450 electric utility units. Phase II of the program
 begins in 2000 and affects approximately 2,000 utility and industrial units. Despite this increase in
 affected units, the number of quarterly emission reports processed (8,000 per year) will remain
 unchanged because Phase II electric utility units are already required to report their emissions.
 However, there will be more than a four-fold increase in the number of units for which EPA will
 conduct an annual reconciliation of allowances with measured emissions. In addition, there is likely
 to be a significant increase in allowance trading activities in Phase II of the program. (More than
 1,000 private allowance transfers per year are currently processed, and this number is expected to
 triple as Phase II is implemented.)  This increased workload  will be handled through improved
 information re source management and by improving program operation and efficiency through rule
 revisions.  In 2001,  the Program will begin a three-year effort to  re-engineer the information
 technology support structure in order to meet current and future needs.  The current system is based
 on 1992 programming technology which has become outdated and cumbersome.

 I
                       20
23   26   23  32  )35
<5   8   11   14   17   20   23   26   23   32  >35
                     1989-91
            1995-97
       Source: Lynch, J.A., Bowersox, V.C. and Grimm, J.W., 1999, Changes in Sulfate Deposition in Eastern U.S.A.
       Following Enactment of Title IV of the Clean Air Act Amendments of 1990. Submitted to Atmospheric Environment.
       In Press. (Units are in kilograms per hectare).

Sulfate Deposition in Acid Rain Reduced (kg/ha)

•      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% over a large
       area of the Eastern United States.
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     In addition to these operational activities, the Acid Rain Program is responsible for managing
the Clean Air Status and Trends Network (CASTNet), a dry deposition monitoring network, as well
as providing critical operational support for the National Atmospheric Deposition Program (NADP)
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 US-CanadaAir 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. NAPAP coordinates Federal acid deposition research and
monitoring of emissions, acidic depositions, and their effects, including  assessing the costs and
benefits of Title IV.  In 2001, the Acid Rain Program  will complete work on NAPAP's 2000
Integrated Assessment Report and continue analyzing the costs and benefits of the Program for
inclusion in NAPAP's 2004 Integrated Assessment Report.  In addition, the Program will initiate
an integrated assessment of its effectiveness in addressing visibility, fine particle, and ozone impacts
resulting from Phase II operations for the Ozone Transport Region.

      States also carry out activities to implement the  SO2 and NOX portions of the Acid Rain
Program, including certificationand recertification of Continuous Emissions Monitors (CEMs), field
audits of CEMs, and permitting activities.  Some states may use their acid rain grant funds for
monitoring activities to help assess the effectiveness of the program in reducing environmental risks.


FY 2001 Change  from FY 2000 Enacted

EPM

•     (-$237,500) Funding to support Southern Appalachian Mountain Institute, a Congressional
      earmark in 2000, will not be continued.

•      (+$600,000) Funding will be used for program evaluation and development.

•      (+$800,000) Funding will be used to implement system modernization and enhancements
       to the Acid Rain Data System.
•      (-$237,500) Funding to support acid  rain research at the University of Vermont,  a
       Congressional earmark in 2000, will not be continued.

•      (-$95,000) Funding to support a National Research Council study of the Clean Air program,
       a Congressional earmark in 2000, will not be continued.


Annual Performance Goals and Performance Measures

Reduce SO2 Emissions

In 2001    5 million tons of SO2 emissions from utility sources will be reduced from the 1980 baseline.

In 2000    5 million tons of SO2 emissions from utility sources will be reduced from the 1980 baseline.

In 1999    On-track to achieve APG. End-of-year FY 1999 date will not be available until late 2000.

Performance Measures:                          FY 1999      FY2000      FY2001
                                           Actuals       Estimate      Request


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SO2 Emissions                                               5,000,000                Tons Reduced

NOx Reductions                                30-Oct-2000                            Tons Reduced

Baseline:   The base of comparison for assessing progress on the 2001 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.

Reduce NOx Emissions

In 2001    2 million tons of NOx from coal-fired  utility sources will be reduced from levels before
          implementation of Title IV of the Clean Air Act Amendments.

In 2000    2 million tons of NOx from coal-fired  utility sources will be reduced from levels before
          implementation of Title IV of the Clean Air Act Amendments.

Performance Measures:                           FY 1999       FY2000       FY2001
                                             Actuals        Estimate       Request

NOx Reductions                                              2,000,000      2,000,000  Tons
Reduced

Baseline:   The base of comparison for assessing progress on the 2001  annual performance goal is
          emissions levels of coal-fired utility sources before implementation of Title IV of the Clean
          Air Act Amendments. Emissions levels that would have resulted without implementation
          of Title IV of the CAAA were based on projection of NOx emissions assuming growth
          without additional controls.


Verification and Validation of Performance Measures

       Performance Measure: SO? and NQY emission reductions

Performance Database: Emissions Tracking  System (ETS)   (SO2  and NOX emissions from
Continuous  Emission Monitoring Systems  (CEMS)); CASTNet (dry deposition); NADP (wet
deposition)

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.  The
CASTNet measures particle and gas acidic deposition chemistry. Specifically, CASTNet measures
sulfate and  nitrate dry deposition and meteorological  information at approximately 70 active
monitoring sites. CASTNet is primarily an eastern, long-term dry deposition network funded and
operated by EPA/OAR. The database is maintained by OAR. The National Atmospheric Deposition
Program (NADP) is a national long-term wet deposition network that measures precipitation
chemistry and provides long-term geographic and temporal trends in concentration and deposition
of major cations and anions. Specifically, NADP provides measurements of sulfate and nitrate wet
deposition at approximately 200 active monitoring sites. EPA, along with several other federal
agencies, states, and other private organizations, provides  funding and support for NADP.  The
NADP database is maintained by the Illinois State  Water Surrey/University of Illinois.

OA/OC Procedures: Our QA/QC requirements dictate performing a series of quality assurance tests
of  CEMS performance. For these tests, emissions data are  collected under highly structured,
carefully designed testing conditions, which involve either high quality standard reference materials
or multiple instruments performing simultaneous emission measurements. The resulting data are
screened and analyzed using a battery of statistical procedures, including one that tests for systematic


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bias. If the CEMS fails the bias test, indicating a potential for systematic underestimation of
emissions, then either the problem must be identified and corrected or the data is adjusted to prevent
the low bias.  CASTNet has established data quality objectives and quality control procedures for
accuracy and precision.  NADP has established data quality  objectives and quality control
procedures for accuracy, precision and representativeness. The intended use of these data is to
establish spatial and temporal trends in wet deposition and precipitation chemistry.

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

Data Limitations: 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 the National Acid Precipitation AssessmentProgram (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.  NAPAP prepares a
biennial report which evaluates the costs, benefits, and effectiveness of the Acid Deposition Control
Program under Title IV  of the 1990 Clean Air  Act  Amendments. The NAPAP assessment is a
multi-agency effortrequiringcooperation and coordination between 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 (CAA) Titles I and IV (42. U.S.C. 7641-7642)
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Goal 2: Clean Water

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Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 2: Clean and Safe Water	H-l
        Safe Drinking Water, Fish and Recreational Waters	 11-13
        Conserve and Enhance Nation's Waters	 11-37
        Reduce Loadings and Air Deposition	 11-63

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                           Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

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

Goal!
Obj. 1

Obj. 2

Obj. 3



Clean and Safe Water
Safe Drinking Water, Fish and
Recreational Waters
Conserve and Enhance Nation's
Waters
Reduce Loadings and Air
Deposition
Total Workyears
FY.1999
Enacted
$3,424,511.4
$1,088,104.5

$355,049.8

$1,981,357.1

2,610.3
FY 2000
Enacted
$3,491,587.3
$1,189,400.4

$381,485.2

$1,920,701.7

2,722.8
FY2001 FY2001Req.v.
Request FY2000Ena.
S2.754.826.5
Sl.099.270.9

$438.783.0

SI. 2 16.772.6

2.672.7
($736,760.8)
($90,129.5)

$57,297.8

($703,929.1)

(50.1)
Background and Context

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

       Contaminated water can  cause  illness and even death.   Furthermore,  exposure to
contaminated drinking water poses a special risk to such populations as children, the elderly, and
people with compromised immune systems. In 1994, 17 percent of those served by community
water systems were supplied drinking water that violated health standards at least once during the
year.  EPA efforts in subsequent years are targeted to reducing this percentage.
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       While the Nation has made considerable progress over the past 25 years, serious water
pollution problems remain.  The National Water Quality Inventory 1996 Report to Congress
indicates that 16 percent of assessed rivers and streams and 35 percent of assessed lake acres are not
safe for fish consumption; 20 percent of assessed rivers and streams and 25 percent of lake acres are
not safe for recreational activities (e,g, swimming); and 16 percent of assessed rivers and streams
and 8 percent of lake acres are not meeting drinking water uses.  Many of the remaining challenges
require a different approach to environmental protection because they are not amenable to traditional
end-of-pipe pollution controls. These problems derive from the activities of people in general. The
challenge for EPA is to encourage people to consider how their day-to-day decisions can affect the
quality of their rivers, streams, lakes, wetlands, and estuaries.
Means and Strategy

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

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

       EPA has increased efforts to provide states and tribes tools and information to assist them
in protecting their residents from health risks associated with contaminated recreational waters and
noncommercially-caught fish. These tools will help reduce health risks, including risks to sensitive
populations such as children and subsistence and recreational anglers,  EPA activities include
development of criteria, enhanced fish tissue monitoring, risk assessment, and development offish
and shellfish consumption advisories. EPA will also establish improved safety guidelines and
pollution indicators so that local authorities can monitor their recreational waters in a cost-effective
way and  close them to public use when necessary to protect human health.  For beaches, EPA's
                                         II-2

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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.

       The President's Clean Water Action Plan (CWAP), announced in February 1998, calls for
more than 100 specific key actions by EPA and by many other Federal agencies with either water
quality responsibilities or activities that have an impact on water quality. These key actions cover
most aspects of the water program at EPA. The Action Plan mobilizes Federal, state, and local
agencies to achieve the Nation's clean water goals through the watershed approach, brings a sharp
focus  to the  critical actions  that are required,  and establishes  deadlines for  meeting these
commitments over the next several years. For FY 2001, EPA requests $762 million for the CWAP
and an additional $21,525,400 in related funding.

       Key to the watershed approach is continuation of EP A-developed scientifically-based water
quality standards and criteria under the Clean Water Act.  Where water quality standards are not
being met, EPA will work with states and tribes to improve implementation of total maximum daily
load (TMDL) programs that establish the analytical basis for watershed-based decisions on the need
for additional pollution reductions,  EPA will continue to develop and revise national effluent
guideline limitations and standards, capitalize  and manage the Clean Water State Revolving Fund
(CWSRF) program and other funding mechanisms, streamline the National Pollutant Discharge
Elimination System (NPDES) permit program, and revise the NPDES and water quality standards
regulations to achieve progress toward  attainment  of water quality standards  and  support
implementation of TMDLs in impaired water bodies. The Agency will continue to work on reducing
the NPDE S permit backlog, in partnership with states, by targeting permitting activities toward those
facilities posing the greatest risk to the environment. In addition, the Agency will continue to expand
its training and electronic information activities to improve the efficiency and effectiveness of the
NPDES program. These strategies and activities are particularly important as the NPDES program
faces significant new demands with the implementation of the phase II storm water rule, the strategy
for animal feeding operations  and coverage  of additional wet-weather sources contributing to
pollution problems.  EPA will also continue reorienting its point source programs towards a
watershed focus.

       The CWSRF is a significant financial tool for achieving clean and safe water and for helping
to meet the significant needs for wastewater infrastructure over the next 20 years. All 50 states and
U.S. territories have benefitted from this and other wastewater funding. This budget request includes
$800 million for the Clean Water State Revolving Fund (CWSRF). This investment keeps EPA on
track with our commitment to meet the goal for the CWSRF to provide an average of $2.0 billion
in annual financial assistance.  Indeed, the President's Budget calls for cumulative additional
capitalization of $3.2 billion in fiscal years 2002-2005,  which will enable the program to exceed the
Administration commitment. Over $ 17 billion has already been provided to capitalize the CWSRF,
more than twice the original Clean Water Act authorized level of $8.4 billion.  Total SRF funds
available for loans since 1987, reflecting loan repayments, state match dollars, and other sources of
funding, are approximately $30 billion, of which $26 billion having been provided to communities
as financial assistance ($4.2 billion was available for loans as of June 1999).

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       To further support the objectives of the Clean Water Action Plan, the Agency proposes for
FY 2001 to allow states to reserve up to an amount equal to 19% of their CWSRF capitalization
grants to provide grants of no more than 60% of the costs of implementing eligible nonpoint source
and estuary management projects. Projects receiving grant assistance must, to the maximum extent
practicable, rank highest on the State's list used to prioritize projects eligible for assistance.  States
may make these grants using either a portion of their capitalization grant itself, or using other funds
in their state revolving fund (e.g, state match, repayments, bond proceeds).  Grants may also be
combined with loans  for eligible projects  for communities  which might otherwise find loans
unaffordable,

       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 management
programs. Working with EPA, states and tribes are strengthening their nonpoint source programs
to ensure that needed nonpoint source (NPS) controls are implemented to achieve and maintain
beneficial uses of water.   States will continue to implement coastal nonpoint source 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 Clean Water Act Section 404 and
Farm Bill programs.

       Through continuing implementation of Clean Water Action Plan  priorities, watershed
restoration action strategies will be implemented in high priority watersheds across the nation that
will enable local leaders to take a stronger role in setting priorities and solving water quality
problems that affect the-quality of life in their communities.  EPA will work with states, tribes,
municipalities, and the regulated community to ensure that the Phase II rules for the stormwater
program are implemented to solve problems caused by sediment and other pollutants in our waters.
EPA will also establish criteria for nutrients (i.e., nitrogen and phosphorus) so that more states can
develop water quality standards that protect waters from harmful algal blooms such aspfiesteria,
dead zones, and fish kills, which develop as a result of an excess of these nutrients. EPA will work
with States to fund priority watershed projects through the CWSRF to reduce nonpoint and estuary
pollution. The Agency will also work to reduce nonpoint source  pollution from failing septic
systems.
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       Research

       EPA's research efforts will continue to strengthen the scientific basis for drinking water
standards through the use of improved methods and new data to better evaluate the risks associated
with exposure to chemical and microbial contaminants in drinking water.  To support the Safe
Drinking Water Act (SDWA) and its 1996 Amendments, the Agency's drinking water research will
develop dose-response information on disinfected byproducts) DBFs, waterbome pathogens, arsenic
and other drinking water contaminants for characterization of potential exposure risks  from
consuming tap water, including an increased focus on filling key data gaps and developing methods
for chemicals and microbial pathogens 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, and for maintaining the quality of treated water hi the
distribution  system and preventing the intrusion  of microbial  contamination.  By reducing
uncertainties and improving methods associated with the assessment and control of risks posed by
exposure to microbial contaminants in drinking water, EPA is  providing the  scientific  basis
necessary to protect human health and ensure that BY 2005,95 percent of the population served by
community water systems will receive water mat meets drinking water standards in place in 1994.

       Research to support the development of ecological criteria will improve our understanding
of the structure, function and  characteristics of aquatic systems, and will evaluate  exposures to
stressors and their effects on  those systems.  This research  can  then be used to improve risk
assessment methods to develop aquatic life, habitat, and wildlife criteria. 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 mat persist in the environment and accumulate in the
food chain, threatening wildlife and potentially human health.  This research will  facilitate the
assessment of ecological health of me nation's waters,providing water resource managers with a tool
for determining whether then" aquatic resources support healthy aquatic communities. The Agency
also will develop cost effective technologies for managing contaminated sediments with an emphasis
on identifying innovative in situ solutions. EPA will continue to develop diagnostic tools to evaluate
the exposures to toxic constituents of wet weather flows, and develop and validate effective
watershed management strategies for controlling wet weather flows, especially when they are high
volume and toxic.  This research will also develop effective beach evaluation tools necessary to
make timely and informed decisions on beach advisories and closures.
Strategic Objectives and FY 2001 Annual Performance Goals

Objective 01: Safe Drinking Water, Fish and Recreational Waters

»      Reduce exposure to contaminated recreation waters by increasing the information available
       to the public and decision-makers. (Supports CWAP)
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•     Maintain percent of the population served by water systems that will receive drinking water
      meeting all health-based standards that were in effect as of 1994.

Objective 02: Conserve and Enhance Nation's Waters

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

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

•     Water quality will improve on a watershed basis  such that 550 of the Nation's 2,150
      watersheds will have greater than 80 percent of assessed waters meeting all water quality
      standards, up from 500 watersheds in 1998.

Objective 03: Reduce Loadings and Air Deposition

•     500 projects funded by the Clean Water SRF will initiate operations, including 300 projects
      providing secondary treatment, advanced treatment, CSO correction (treatment), and/or
      Storm water  treatment.  Cumulatively,  6,200 SRF funded projects will have initiated
      Operations since program inception.

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

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

       So that all Americans have water that is safe to drink, EPA will work to ensure that 91
percent of the population will continue to receive drinking water from systems meeting all health-
based standards in effect as of 1994. The Agency will also assist  states in implementing the
requirements of the Stage 1 Disinfection/Disinfection Byproducts (D/DBP) Rule and the Interim
Enhanced Surface Water Treatment Rule, as well as various other new rules including radon,
Unregulated Contaminant Monitoring (UCMR), and filter backwash rules.  EPA will also continue
to target resources for drinking water rale-making, as mandated by the 1996 SDWA Amendments,
and for risk assessment and improved analytical methods on potential contaminants identified in the
1998 Contaminant Candidate List (CCL) EPA is also using the 1998 CCL for determining drinking
water research priorities in addition to rule-making and data collection priorities.

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       States are facing increasing workloads to expeditiously develop, in many cases consistent
with Court-ordered deadlines, critically-needed total daily maximum loads for their impaired water
bodies.  To assist states in addressing their TMDL needs, a targeted increase in Section 106 grants
of $45 million is requested with a state cost-share requirement of 40% of project costs. These funds,
coupled with state flexibility to use up to 20% of their increased Section 319 grants, and other
funding sources are intended to provide sufficient resources to allow States to meet their TMDL
obligations in 2001 based on the estimated cost of EPA's TMDL regulation proposed in August
1999.

       EPA is requesting a significant new investment to restore water quality in the Great Lakes.
Under this $50 million initiative., EPA would competitively award matching grants to state and local
governments to clean up contaminated sediments, control stormwater, restore wetlands, acquire
greenways and buffers, and control polluted runoff. States or municipalities would use the funds to
address existing "areas of concern" (AOCs) that were defined in 1987 by the International Joint
Commission — a joint partnership between the United States and Canada. These funds would
support restorative and protective actions in the 31 AOCs that fall wholly or partly in U.S. waters,
and represent a dramatic increase in support for Great Lakes states'  and communities' efforts to
preserve and enhance their waterways.

       The Administration's Clean Water Action Plan provides a comprehensive strategy for
assessing and restoring the Nation's most impaired watersheds. Fundamental to the Agency' s efforts
to conserve and enhance the Nation's waters is the management of water quality resources on a
watershed basis, with the full involvement of all stakeholders including communities, individuals,
businesses, state and local  governments, and tribes.  A key priority for 2001 will be continued
emphasis on development and implementation of Watershed Restoration Action Strategies (WRAS)
in those waters identified by the states as most in need of restoration. By the end of 2001, the third
year of its availability to states, incremental funding under the Clean Water Act Section 319 grants
program will have provided $350 million in environmental improvement projects in these impaired
waters.  Starting in FY 2000, these incremental section 319 funds are only available to states with
approved upgraded section 319 programs, as specified in the CWAP.  EPA will also encourage,
using a watershed approach, the establishment of additional planning groups or partnerships to
develop local comprehensive plans for managing dredged material in an environmentally  sound
manner. Furthermore, EPA will be an active participant in the development of these plans.

       Habitat restoration and protection is another key component of the Clean Water Action Plan.
By 2001, with EPA's support, the National Estuary Program will have preserved, restored, or created
an additional 50,000 acres of habitat, including sea grass and shellfish beds. In 2001, EPA will
continue implementing  the national assessments  regarding the causes of,  and  appropriate
management responses to, harmful algal blooms and  hypoxia. EPA will also be working with the
Invasive Species Council on the national and agency-specific action plan to implement the Invasive
Species Executive Order.
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       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 National
Pollutant Discharge Elimination System program (which includes NPDES permits, urban wet
weather,  large animal feeding operations, mining, the pretreatment program for non-domestic
wastewater discharges into  municipal  sanitary sewers, and biosolids  management controls)
establishes controls on pollutants discharged from point sources into waters of the United States.
Key annual performance goals for FY 2001 are to reduce industrial discharges of toxic pollutants
by 4 million pounds, nonconventional pollutants by 3 70 million pounds, and conventional pollutants
by 386 million pounds as compared to 1992 reduction levels. To ensure that all point sources are
covered by current permits, EPA has developed a backlog reduction strategy under which 89 percent
of major permittees and 66 percent of minor permittees will have current permits in place by FY
2001.  EPA will also begin evaluating data received from the first round of monitoring from all
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 25 percent of the river miles surveyed.
In order to restore and maintain water quality, significant loading reductions from nonpoint sources
must be achieved.  Because EPA has limited direct NPS authority under the Clean Water Act, state
NPS programs are critical to our overall success. To achieve reductions in loadings, it is essential
for  EPA to work with states  to expeditiously implement the nine key program elements in their
strengthened nonpoint source programs.  EPA will encourage states to make use of Clean Water
State Revolving Funds and other Federal resources to finance projects that address polluted runoff.

       Research

       In  2001, EPA's drinking water research program will  conduct research to reduce
uncertainties and improve methods associated with the assessment and control of risks posed by
exposure to microbial contaminants in drinking water, with a focus on emerging pathogens listed
on the Contaminant Candidate List (CCL). As required by the SDWA amendments, the first CCL
was published in 1998 and included 9 microbial contaminants in its Research Priorities Category that
require more data before a regulatory determination can be made. There are significant data gaps
with regard to understanding the occurrence of these microbes in source and distribution system
water, linkages between water exposure and infection, and the effectiveness of candidate treatment
technologies to remove and inactivate  these contaminants.  The  development of this crucial
information will provide the scientific basis necessary to protect human health and ensure that 95
percent of the population served by community water systems will receive water that meets drinking
water standards.

       As part of EPA's effort to conserve and enhance the nation's waters, the aquatic stressors
research program will develop a framework for diagnosing adverse chemical pollutants in surface
waters. In 2001, EPA will publish a compendium of case studies illustrating the application of the

                                          II-8

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Stressor Identification Guidelines, as well as reports on risk characterization for watersheds and
sediment toxicity. These tools will enable water resource managers to identify critical stressors to
aquatic ecosystems and better focus restoration and watershed management decisions.

       Because almost 40% of rivers, lakes, and coastal waters surveyed by states do not meet water
quality goals, effective watershed management strategies and guidance for Wet Weather Flow
(WWF) dischargers is one of the key priority areas remaining to assure clean water and safe drinking
water.  In 2001, EPA will continue to develop and validate effective watershed management
strategies for controlling WWFs, especially when they are high volume and toxic.  This research will
also develop and provide effective beach evaluation tools necessary to make timely and informed
decisions on beach advisories and closures.

External Factors

Drinking Water and Source Water

       The Safe  Drinking  Water Act  Amendments of 1996 is one of the first environmentally-
focused  statutes  to  establish  not  only  regulatory,  programmatic,  enforcement,  and
management/administration provisions to ensure that safe drinking water is available nationwide,
but also an outreach process to involve all stakeholders in the development and implementation of
the statutory provisions. To date, this extensive stakeholder involvement has had major benefits on
the Agency's efforts in implementing the 1996 SDWA amendments The complexity of upcoming
regulations and the resource intensive process of gaining consensus with stakeholders poses a
continuing challenge hi implementing the 1996 SDWA amendments.

       The adoption of health-based and other programmatic regulations by the states is another
critical factor. Since 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 they are implementing and complying with the new regulations. To help them with these
efforts, EPA has increased Public Water Systems Supervision grant funding by approximately 60%
since F Y1993. EPA will provide technical assistance and training to the states on the microbial rule
and various other new rules including radon, unregulated contaminant monitoring, the Long-Term
Enhanced Surface Water Treatment and Filter Backwash rules, and the groundwater and arsenic
rules that are being promulgated -in 1999-2000.  EPA assistance is essential to success because of
the emphasis in the new rules on site-specific evaluations and tailored requirements.

       Full implementation of the Underground Injection Control (UIC) program depends on state
and local participation. EPA, hi collaboration with the states, will work with  local government
managers of source water protection programs to implement the Class V rule, which focuses on two
types  of shallow injection  wells, i.e., large capacity cesspools and motor vehicle disposal wells.
Furthermore, EPA will continue to work directly with the states to implement the changes necessary
for maintaining primacy for the Class V program. Because of the sheer number of Class V wells —
over 600,000 — and the threat they pose to ground water sources of drinking water, implementation

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of the overall UIC program could be impacted 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.

       A key element of the Clean Water Action Plan is the integration of public health goals with
aquatic ecosystem goals when identifying watershed priorities. To help facilitate a comprehensive
framework,  Federal agencies involved hi water quality initiatives are  asked to direct "program
authorities, technical assistance, data and enforcement resources to help states, tribes, and local
communities design and implement their drinking water source water assessment and protection
programs within the unified watershed protection and restoration efforts..." (Clean Water Action
Plan, page 29). EPA has concluded an agreement with participating Federal agencies for this aspect
of the C WAP and will work to ensure that these agencies work aggressively to promote source water
assessment and protection activities.

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 compromised by several major constraints,
including lack of regulatory authority, inability to measure behavior, and lack of state and local
resources.

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

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

       Without comprehensive, consistent monitoring of all the Nation's waters, we do not know
how many waters should be under advisory or how many beaches should be closed. This expensive
and time-consuming task is beyond the resources of most states.

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

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levels of government, the private sector, research community, and interest groups.  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.

       The Clean Water Action Plan development process underscored the interrelations of the
Federal government's environmental protection and stewardship agencies and programs, and the
critical importance of working together to maximize achievements. Without continued government-
wide coordination and commitment to the Plan's implementation, we may not meet our water
quality objectives. This is particularly true for successful enhancement of state nonpoint source
management 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.

       Fundamental to all of the Agency's efforts to meet this objective is managing water quality
resources on a watershed basis, with full involvement of 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.

       In addition, we must continue to improve our understanding of the environmental baseline
and our ability to track progress against goals, which also depends on external parties.  While the
Index of Watershed Indicators and state 305(b) reporting provide some assessments of water quality,
we will continue to depend upon and provide support to our partners and stakeholders in their efforts
to improve measurement tools and capabilities. EPA recognizes that better performance goals are
needed to measure nonpoint source loadings. The Agency will continue to work with Federal and
state agencies to  develop both near-term and long-term environmental outcome  measures for
nonpoint source loadings reductions.

Point and Nonpoint Sources

       States and localities are  assumed to be able to  continue to raise sufficient funds for
construction of necessary wastewater treatment and control facilities to accompany Federal financial
assistance. This is especially critical for new regulated sources like storm water and combines sewer
overflows (CSOs). In addition they 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 NPDES permitting program rely heavily on EPA's partnership with States as 44 States
are currently authorized to cany out the NPDES program. EPA will also work with States to reduce
pollution from the approximately 11  million failing U.S. septic systems.

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       It is assumed that states will effectively strengthen and implement improved nonpoint source
programs consistent with their commitments in this area. The CWAP specified that starting in FY
2000, the  incremental section 319 grant funds over $100 million would only go to states  with
approved upgraded section 319 programs as an incentive for states to upgrade these programs.
Federal agencies must work together and fulfill their mutual commitments under their Strategic
Plans and the Clean Water Action Plan if we are to succeed in addressing nonpoint source needs.
No one Agency can succeed in NPS management without the partnership efforts of a wide range of
Federal, state, local and private sector interests.
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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

                                Clean and Safe Water


Objective # 1: Safe Drinking Water, Fish and Recreational Water

       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 hi waters
used for recreation will be reduced-
                                 Resource Summary
                                (Dollars in thousands)

FY 1999 FY 2000
Enacted Enacted
Safe Drinking Water, Fish and Recreational $1,088,104.5 $1,189,400.4
Waters
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears


Drinking Water Regulations
Drinking Water Implementation
UIC Program
Rural Water Technical Assistance
$107,541.5 $120,537,3
$47,853,5 $50,175.7
$932,709.5 $1,018,687.4
845.4 878.4
Key Programs Summary
(Dollars in thousands)
FY1999
Enacted
$33,926.7
$28,134.2
$9,412.2
$9,955.0
FY200!
Request
$1.099.270.9
SI 16.506.0
$53.484.4
S929.280.5
869.4

FY2000
Enacted
$33,230.5
$29,668.5
$9,594.9
$10,401.3
FY2001Req.v.
FY 2000 Ena,
(§90,129.5)
($4,031.3)
$3,308.7
($89,406.9)
(9.0)

FY2001
Request
$37,809.8
$32,234.5
$10,687.6
$232.0
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State PWSS Grants

State Underground Injection Control Grants

Source Water Protection (CWAP - related)

Water Infrastructure:Drinking Water State Revolving Fund
(DW-SRF)


Safe Drinking Water Research

EMPACT

Project XL

Civil Enforcement

Rent, Utilities and Security

Administrative Services

Regional Management
 $93,780.5

 $10,500.0

 $10,741.3

$775,000.0
 $93,305.5

 $10,975.0

 $10,302.3

$820,000.0
 $93,305.5

 $10,975.0

 $11,631.1

$825,000.0
$45,734.6
$1,319.0
$390.5
$1.3
$0.0
$281.2
$0.0
$47,367.6
$0.0
$0.0
$0.0
$12,229.7
$2,285.6
$211.6
$48,872.5
$937.6
$0.0
$0.0
$13,432.4
$2,422.9
$221.9
FY 2001 Request
       The Safe Drinking Water Act (SD WA) is one of the key environmental statutes that protects
public health for all Americans. The four major areas of emphasis hi the 1996 SDWA Amendments
are: 1) improving the way that EPA sets drinking water safety standards and develops regulations
based on good science and data, prioritization of effort,  identification of relatively high-risk
subpopulations,  sound risk assessment,  and effective risk management; 2) establishing new
prevention approaches, including provisions for operator certification, capacity development, and
source water  protection; 3) providing better information to consumers, including  consumer
confidence/"right-to-know"  reports (see  Goal 7); and, 4)  providing funding for infrastructure
investments for communities through the Drinking Water State Revolving Fund (DWSRF).  In
addition, the 1996 Amendments increase the states' flexibility to focus on public health-based
priorities and to make better use of resources; recognize the problems facing small systems and
establish appropriate cost-effective approaches for  such systems; and emphasize the role of
stakeholders and partnerships as a key aspect of an effective national drinking water program.

       In 2001, EPA, states/tribes, and water suppliers will continue to implement the 1996 SDWA
Amendments with the principal purpose of improving and maintaining drinking water safety for the
240 million Americans who gettheir drinking water from public water systems. Under SDWA, EPA
and the states/tribes are responsible for ensuring that consistently safe drinking water is provided to
all persons served by public water systems. EPA meets that responsibility by setting drinking water
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safety standards and providing technical assistance and other support to states that have primary
enforcement authority (primacy) of drinking water regulations. EPA will be directly implementing
programs in states, territories, and on Indian lands that do not have primacy for some or all drinking
water regulations. The State of Wyoming, the District of Columbia and all Indian tribes fall into this
category.

      In 2001, the Agency is continuing its efforts on the development of high priority drinking
water regulations for arsenic and radiomiclides (other than radon).  With regard to arsenic,,  there
are numerous national and international reports on the various health effects attributable to arsenic
that are being considered in the development of this rale. In addition, EPA is performing analyses
and conducting consultations to help determine small system treatment options because arsenic
removal is likely to be relatively expensive and have a disproportionate impact on small systems.
The Agency is also charged (in accordance with a Court stipulation) with making final decisions on
regulatory levels for all of the non-radon radionuclides (alpha emitters, beta emitters, radium, and
uranium). EPA expects to promulgate the final rule by the November 2000 judicial deadline.

      Activities will continue on the final three rules that comprise the Microbial/Disinfection
Byproducts (M/DBP) rule cluster. They are, the Ground Water Rule (GWR), the Long-Term
Enhanced Surface Water Treatment (LTESWT) rules, and Stage 2  Disinfection/Disinfection
Byproducts (Stage 2 D/DBP).  Work on these rules is proceeding according to the plans and
milestones established to meet statutory deadlines. EPA expects that the GWR will be promulgated
in the first quarter of fiscal year 2001. The LTESWT rule is being developed in two parts: the first
will extend the Interim Enhanced Surface Water Treatment Rule to apply to small systems and will
be promulgated in November 2000; the second is being developed in conjunction with the Stage 2
D/DBP rule and will apply to all public water systems. The Agency's work on these two rules will
include an expanded focus on risk analysis to determine the most significant risks and the acceptable
balance among competing risks. For instance, while disinfectants are effective in reducing microbial
risk, they react with natural organic matter in the water to form DBFs. Several of the DBFs have
been shown to cause adverse health effects  in laboratory animals.  The optimal balance will
adequately control risks- from pathogens, simultaneously control DBPs to acceptable levels, and
ensure that costs of water treatment are commensurate with public health benefits. Proposal of these
two rules is expected in February of 2001,

      Occurrence and treatment data collection activities for "new" contaminants, i.e., those not
specifically identified in the 1996 SDWA Amendments, but rather, cited through the Contaminant
Candidate List (CCL), will continue  in 2001.  Additional resources in this area will provide
fundamental support for rule development activities which will include analyses of data on: 1)
source water  occurrence of chemical and  microbiological  contaminants;  2) outbreaks  of
disease/illnesses  for microbiological occurrence; 3) dose-response relationships for contaminants
of concern, including projected impacts on sensitive subpopulations; 4) water consumptionto predict
risks and to improve comparative risk modeling; 5) efficacy of various treatment technologies for
removing contaminants of concern; and 6) analytical methods to ascertain the presence (at levels of
interest) of these contaminants.  These data collection and analyses are critical for the selection of

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contaminants from the CCL for which standards and regulations are to be developed, as required by
the 1996 SDWA Amendments. The CCL, issued in 1998, is composed of 60 contaminants. Based
on the most recent analysis of these contaminants, 12 are Regulatory Determination Priorities and
the balance ~ 48 — are Research Priorities. The Agency must make decisions on whether or not to
regulate at least five contaminants from the CCL by August 6,2001. Given that much of the work
for selecting contaminants to be regulated will be completed prior to 2001, requested funding levels
in this fiscal year will be for directed to expanding data on occurrence, risk analysis and assessment,
and possible treatment technologies for those contaminants in the  Research Priorities category.
Since the statutory deadline for proposing regulations on selected contaminants is August 2003, the
Agency must work diligently and expeditiously to make regulatory determination decisions.
Requested increases for research and development (see below) will also support this effort.

      The Agency will also continue to seek improvements in risk management, e.g., economics,
industry characterization, and areas of special emphases.  The 1996 Amendments require a more
comprehensive analysis of the costs and benefits of drinking water regulations than was done in the
past. These new approaches will take several years to complete, particularly in the area of benefits
analyses, where groundbreaking research and analysis have begun and will be ongoing.  Efforts to
update the Community Water System survey (the Agency's baseline information on the numbers
and characteristics of systems hi various size categories) will also occur in 2001. In addition, the
Agency will continue to explore treatment approaches for various contaminants of interest that have
particular applicability to small public water systems. One area of emphasis in the risk management
context will be special populations such as children and the elderly, while another will focus on
vulnerable public water systems, especially  small systems serving less than 10.000 people.

      The funding of activities related to the implementation of drinking water regulations is an
important component of this request.  The Stage 1 D/DBP and Interim Enhanced  Surface Water
Treatment Rules, promulgated in late 1998, address the greatest risk reduction efforts for drinking
water protection by  regulating  microbiological contaminants,  such as cryptosporidium, and
controlling byproducts from disinfectants.  EPA resources have been redirected to assist states/tribes
in adopting and implementing these important rales as well as the Consumer Confidence Report and
Public Notification rules.  During 2001,  the Agency expects to provide training and technical
assistance on all of these rales,  EPA assistance is essential to success because of the emphasis in
new regulations for site-specific evaluations and tailoring of requirements. The Agency will directly
implement these rules in those states and on  Indian lands that do not have primacy for some or all
drinking water regulations.  The Agency  will also be carrying  out activities  related to the
Unregulated Contaminant Monitoring Rule.1
       'In 1998-2000 and continuing in 2001, the Agency has set aside $2,000,000 from the
Drinking Water State Revolving Fund (DWSRF) for the purpose of reimbursing small systems
for monitoring under the Unregulated Contaminants Monitoring Rule (UCMR).

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      In addition, states will be implementing the guidelines for operator certification2 and
recertification to ensure that owners and operators of public water systems are fully implementing
existing and new SDWA  requirements. Also, there will be significant  activity related  to
implementation of the capacity development provisions of the SDWA. States' focus will be on both
new and existing public systems. States will continue to implement their programs for new systems
to ensure that they demonstrate technical, managerial, and financial capacity.  States will begin to
implement  their  capacity development strategies for existing systems.   Through capacity
development strategies, states will assist existing water systems in acquiring and maintaining the
technical, financial, and managerial capacity needed for compliance with SDWA. EPA support for
the states' implementation of these programs directly affects public health outcomes as these
activities provide  a framework to help systems comply with drinking water standards.  EPA is
reducing technical assistance and support to the states for these capacity building programs in 2001,
because states' success in adhering to the requirements in 1999 was greater than expected.  One
reason for the states' success in these areas is the incentives built into the Drinking Water State
Revolving Fund program. EPA is required to withhold up to 20 percent of a state's allocation if
the state  does not meet  the  requirements  of either capacity  development  or  operator
certification/recertification guidelines. Regarding capacity development, all states met the October
1999 deadline for submitting capacity development plans for new water systems, and thus avoid
withholding of DWSRF resources. We also expect that all states will meet the deadline for operator
certification requirements (September 30,  2001 for states submitting  substantially equivalent
programs) and avoid DWSRF withholding.

      The Agency established the Safe Drinking Water Information System (SDWIS) to serve as
the central repository for data on both the states' implementation of and compliance with existing
and new drinking water regulations.  SDWIS is the nation's best source of national compliance
information  on all SDWA requirements and provides the critical data base for such documents as
Annual  Compliance Reports, Drinking Water Consumer Confidence Reports, development  of
regulations, trends analyses and public information. Currently, the Agency is implementing a data
reliability action plan that was developed in 1999 as a multi-step approach to improve the quality
and reliability of data in SDWIS.  Two important steps were completed by the end of 1999, i.e., 1)
an industry survey analysis in which water utilities  examined and compared data in SDWIS with
their own data,  and 2) a study of the variety of ways that states are organized to carry out their
drinking water program responsibilities and the effects of those organization on the way in which
data are collected. Those two steps laid a foundation on which to develop and implement state-
specific, on-site training for data entry into SDWIS, which will be carried out in 2000 and 2001, and
will significantly enhance and improve the completeness, accuracy, and timeliness of the data in
SDWIS.
       2As was the case in 1999 ($15M) and 2000 ($30M), the Agency will set aside resources
from the DWSRF in 2001 ($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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      Another of the Agency's major priorities is preventing contamination of our Nation's
drinking water sources. This is a vital aspect of comprehensive protection of public health and a
high priority activity authorized and enhanced in the 1996 SDWA Amendments. In 2001, we expect
that all  50 states, the  District of Columbia, and Puerto Rico will be conducting source water
assessments based on their EPA-approved source water assessment plans. Data from these
assessments will help determine the vulnerability to contamination of each states's sources of
drinking water and the consequent risk to  human health.  Source water protection efforts will
continue to be integrated with activities under the Clean Water Action Plan (CWAP) to expand the
parameters of drinking water protection efforts. This integration is an example of how two water-
related statutes - the Safe Drinking Water Act and the  Clean Water  Act (CWA) - can  be
implemented to bring together source water protection efforts with watershed restoration efforts.
Sources of drinking water that are identified through unified watershed assessments as high priority
watersheds will receive expedited assistance in coordinating source water protection activities with
watershed restoration action strategies. To emphasize the importance of this effort, since 1999 EPA
has redirected workyears and expanded its Regional staff who will work hi collaboration with states,
tribes, and the Regional and field offices of other Federal agencies to implement source water
protection programs and activities in high priority watersheds.

      Increasing protective measures for source water is the principal focus of the rule on shallow
(Class V) underground injection wells that was promulgated in  1999. Through a multi-partnered
effort, EPA will work with local government managers of source  water protection programs to
implement the Class V rule. Furthermore, EPA will continue to work directly with the states to
implement the changes necessary for mamtaining primacy for the Class V program. EPA will also
continue to implement, hi full or hi part, the UIC program for 17 states, the District of Columbia,
and all Tribes.

      The Agency will also continue support for the Drinking Water State Revolving Fund. The
DWSRF was established to provide assistance to public water systems in order to finance the cost
of infrastructure improvements as well as  enhance water system management.  All states will
continue to administer their DWSRF in 2001.  At least 1,800 community and non-cornmunity
drinking water systems will have entered into DWSRF loans since the inception of the program in
fiscal year 1997.  With loans from the DWSRF, as many as 450 drinking water systems will be
initiating operations after completing work to improve and upgrade their pipes, treatment plants, and
other components of their drinking water infrastructure.

      Also,  through  partnerships  with the American Metropolitan Water Agencies and the
American Water Works Association, EPA will work with water utilities undertaking measures to
safeguard water supplies from terrorist and seditious acts. This is part of a coordinated government-
wide effort to combat terrorism and is consistent with Presidential Decision Directive 63 issued hi
May of 1998.  In support  of this effort, the Agency will also implement an assessment of the
vulnerability, and the methods to reduce vulnerability, of the drinking water supply to terrorist
actions.
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      Reducing exposure to contaminants in fish and shellfish and through contact in recreational
waters is a top priority for the National Water Program. In 2001, the Agency will continue to work
with its state partners to ensure that they adopt into their standards a suite of scientifically-based
criteria to protect recreational, fish consumption, drinking water, human health, and aquatic life uses.

      Approximately 75% of the Nation's population lives, works, or plays on or near our coastal
waters.  Use of water for recreation is divided into primary contact recreation (swimming) and
secondary contact recreation (activities such as boating). Studies indicate that some recreational
waters (inland rivers, lakes, and coastal  waters) expose  swimmers to  unacceptable  levels  of
infectious disease.  Susceptible populations (e.g., children) are the most likely to develop illnesses
or infections after swimming in polluted water.  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 and close them to public use when necessary to protect human health. For
beaches, our three-part goal is to strengthen beach standards and testing, to improve the scientific
basis for beach assessment, including accurately determining causes of beach closures, and to
develop methods to inform the public about beach conditions.

      Monitoring and risk assessment procedures used by states in their fish and shellfish and beach
contamination advisory programs vary widely.  In 2001, the Agency will assess the consistency in
state fish consumption programs and begin developing fish advisories for state programs that are not
consistent with the Federal guidance.  In support of this effort, the Agency will continue a
nationwide survey of toxic residues hi fish and complete epidemiological studies in the Great Lakes,
in cooperation with the Agency for Toxic  Substances and Disease Registry (ATSDR),  on health
effects  of  exposure  to  selected   bioaccumulative  toxics.    The   Agency  will  support
monitoring/modelingpilot programs that improve states' ability to predict and address contamination
events at beaches.  In 2001, we will work with states, tribes, and other stakeholders  to develop a
stratified monitoring strategy to enable states to use statistical sampling methods to assess fish
contamination and recreational waters. The Agency will also evaluate the health risks in seafood
harvested from the Gulf of Mexico and continue to work on alternative risk-based indicators and
methods for skin, respiratory, eye, ear, throat, and gastrointestinal diseases most commonly resulting
from exposure to contaminants at beaches. EPA will also issue up to three human health criteria for
bioaccumulative pollutants.

      To assure that the public has timely information on the quality of specific local beaches, the
Agency will continue to expand an Internet-based Federal information source called Beach Watch
on beach advisories and closings across the United States as well as on beaches that are and are not
monitored.  Working with states, tribes, and local governments, EPA will expand the database to
include information on high-use fresh water beaches and on the location of combined sewer overflow
(CSO) outfalls near beaches. We will also  begin to add digitized maps of coastal and inland high-
use beaches  to the Internet database. The Agency will publish model water quality standards for
beaches that states and tribes can incorporate into their own water quality  standards programs and
will conduct workshops on monitoring techniques for states and tribes.
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      In addition, the Agency  will continue to work with stakeholders,  encouraging foil
involvement at all levels of government, to expand the total proportion of surface waters assessed
for possible fish and beach  contamination and to implement fish  consumption and beach
contamination advisory programs that are consistent with published national guidance. The Agency
will also strive to develop and provide improved tools, such as scientifically-based models and
methods, that will enable environmental managers to better predicts assess, and take appropriate
actions to protect the public. The Agency will work with its state and local partners to assess and
document beach health conditions, identify major priorities and scientific concerns, and improve
public notification practices so that individuals can make better decisions about when and where to
recreate. These efforts will be supported by the Agency's Beaches Environmental Assessment,
Closure and Health (BEACH) research program which is developing better tools for determining
when beach closures and advisories are warranted and is developing better mechanisms for detecting
and measuring microbial contamination.

      Research

      The continued occurrence of waterborne disease outbreaks demonstrates that contamination
of drinking water with pathogenic bacteria, viruses, and parasites still poses a serious health risk
when treatment is inadequate or when contamination occurs in the distribution system.  Microbial
contaminants may cause infection, disease, and mortality in susceptible populations. To  combat
waterborne microbial diseases, public water systems disinfect drinking  water with chlorine or
alternative disinfectants such as ozone in combination with chlorine or chloramine.  However,
unwanted chemical by-products are produced during the disinfection process when the disinfectants
react with  organic material during the treatment process.  After long-term ingestion,  these
disinfection by-products (DBFs) have been shown to cause harmful health effects in experimental
animals, including cancer and adverse reproductive outcomes. In addition, some human studies have
suggested that consumption of chlorinated DBFs may be associated with elevated cancer rates and
adverse reproductive outcomes. The magnitude and severity of the risks from known contaminants
are of current concern.  However, less  is known about the risks from emerging pathogens,
unidentified or poorly characterized DBFs, and other emerging chemical contaminants. Because
these contaminants are relatively unknown and understudied, tens of millions of people are
potentially at risk from exposure to DBF, emerging pathogens, or chemical contaminants.

      In F Y 2001, EPA's drinking water research will focus on filling key data gaps and developing
analytical detection methods for measuring the occurrence of chemical and mierobialjpntaminants
on the Contaminant Candidate List (CCL).  Research will also continue to support the Safe Drinking
Water Act Amendments (SDWAA) priorities, emphasizing research and assessment on sensitive
subpopulations, adverse reproductive effects of drinking water contaminants, research on selected
issues such as DBFs  and waterborne disease occurrence  studies, as well  as treatment and
maintenance of water quality in the distribution system.

      The  ability to detect and measure contaminants, particularly microbes, in drinking water is
hampered by the lack of available methods. Information on contaminant occurrence in drinking

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water and potential human exposure is needed for setting research priorities, and measurement
methods are needed to conduct well-designed toxicity and treatability studies. In FY 2001, EPA's
drinking water research will include the development of analytical detection methods for chemical
and microbial contaminants with potential public health significance. Research will be conducted
to identify DBFs resulting from various disinfection processes, and develop unproved analytical
methods to detect and measure DBFs and CCL-listed chemicals. EPA will apply and evaluate newly
developed measurement methods in occurrence and exposure studies for viruses, bacteria and
parasites in drinking water. In FY 2001, EPA will produceji report on the occurrence of CCL-
related pathogens, such as Mycobacterium and Aeromonas, in source and drinking water.

       Many uncertainties exist with respect to our ability to adequately assess the health effects
associated with exposure to pathogenic bacteria, viruses and parasites in drinking water. In FY
2001,epidemiology research will be conducted to characterize the nature of infection and disease
associated with exposure to priority waterborne pathogens  on the CCL. Studies will also continue
to evaluate the  influence of  source  water quality, treatment  technology and demographic
characteristics on waterborne disease in selected communities in the U.S. This research will lead
to a better understanding of the impacts of various factors such as pathogen virulence and host
immune status on disease outcome in exposed individuals.

       Health effects research on chemicals in FY 2001 will continue  to focus on laboratory and
field studies of selected  high priority DBFs, arsenic and contaminants on the CCL.  Studies on
priority chemical contaminants on the CCL will provide toxicity information to support screening
level and/or detailed CCL determinations. Specific data needs will depend upon the contaminant
of interest, and may include an evaluation of carcinogenicity, reproductive effects, or other studies.
Research on DBFs will focus on adverse reproductive outcomes, cancer, and to the extent necessary,
neurotoxic and immunotoxic effects. Further research and risk assessment studies can help define
potential risks related to these health effects.  Therefore, efforts will continue to focus on.evaluating
the adequacy  and application of exposure and health effects data for characterizing risks. All
drinking water health effects research funding is requested in the S&T account. EPA does not plan
to use the health effects research set-aside from the Drinking Water SRF.

       Drinking water assessment research in FY 2001 will continue to  characterize the magnitude
and severity of health risks associated with exposures to DBFs as complex mixtures, as well as to
individual CCL contaminants.  Data gaps and research needs for chemicals on the CCL will be
identified through the screening and prioritization of untested  contaminants and preliminary
assessments of chemicals with limited or incomplete information. Research will be conducted to
improve cancer and non-cancer risk assessments/characterizations for the Stage 2 D/DBPsrule, CCL
and other regulatory decisions using health effects and exposure information and improved dose-
response modeling, where appropriate, for both single chemicals and complex mixtures. The results
of this work will be used to establish Maximum Contaminant Level Goals (MCLGs);  provide
information needed for characterization of risk for disinfectants, DBFs and other drinking water
contaminants; and provide information for conducting cost and benefit analyses. In FY 2001, EPA
will also conduct research to characterize the risks of pathogenic microorganisms that  may be

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transmitted through drinking water; develop quantitative risk assessment models based upon human
dose-response data for a key group of waterborne pathogens; and address factors such as infectious
dose, host immunity, and mortality rates. Particular emphasis will be placed on the development of
disease transmission models for human disease occurrence following exposure to  pathogens in
drinking water.

       One of the challenges in providing safe drinking water lies in minimizing the risks associated
with DBFs while controlling microbial pathogenic risks. Researchers will continue to focus on
developing and evaluating cost-effective treatmentand management approaches that simultaneously
reduce the risk of waterborne diseases and exposures to DBFs. Work will continue in FY 2001 to
address emerging pathogens and chemicals on the CCL. The microbial portion of this research will
focus on determining the treatability of helicobater pylori, aeromonas and adenovirus. In F Y 2001,
EPA will complete screening treatability studies for at least two microbes on the CCL to determine
whether these contaminants are effectively inactivated by conventional  treatment. The chemical
portion of this research will focus on investigating the treatability of methyl tertiary butyl ether
(MTBE) and perchlorate and the use of membranes to effectively remove CCL chemicals from
drinking water. In addition, efforts will continue to develop and evaluate tools for determining when
it is necessary to disinfect  ground water supplies.  These studies will  reduce uncertainties and
improve methods associated with the control of risks posed by  exposure to microbial and chemical
contaminants in drinking water. This research will also be used to establish treatment options for
MCLs under the SDWAA.

       To effectively protect  the health of the consumer  there  must be assurance that the
transmission and delivery of water from the  treatment plant to the tap  is done in a way  that
guaranties the water quality has not degraded to unacceptable levels. There is substantial evidence
that many factors can cause the quality of water to deteriorate after treatment. Research will focus
on the two main management options for addressing this risk: 1) improving distribution system
integrity to prevent contaminant intrusion, backflow and cross-connections from contaminated
sources and 2) improving  control of distribution system  conditions (e.g.  treatment residuals,
disinfectant residual, residence time, mixing, piping materials, corrosion inhibitors) to minimize
formation and release of undesirable pathogens and chemicals.

       In F Y 2001, research will be conducted to improve analytical techniques for inorganic arsenic
species in drinking water and to develop and refine arsenic speciation methods for biological
matrices and foods. Studies on arsenic will also be conducted in humans and animals to evaluate
the important health effects and dose-responserelationshipsfor effects such as cancer, cardiovascular
disease, and other toxic endpoints that may be of concern.  Arsenic research in FY 2001 also
includes a comprehensive evaluation and integration of the health effects (cancer and non-cancer)
induced by arsenic; the evaluation of dose-response data; and the identification of strengths and
uncertainties.  EPA will  continue to investigate strategies for the acceptable  control of water
treatment residuals enriched by arsenic.
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      The Safe Drinking Water Act Amendments of 1996 required the EPA to publish a list of
unregulated contaminants to aid in priority setting for the Agency's drinking water program. The
existing ContaminantCandidate List (CCL) categorizes 60 chemicals and microbes where additional
research in the areas of health effects, analytical methods and /or treatment are necessary to provide
a sound scientific basis for regulatory decision making. Additional funding will focus on increasing
support for research on the contaminants identified in the Contaminant Candidate List (CCL) that
was issued in February 1998, as well as other drinking water research priorities, consistent with
currently developed research plans and the CCL Research Plan being developed hi FY 2000.

      This research program is also supported through the Agency's Postdoctoral Initiative. The
FY 2001 request is the third year of the effort to enhance our intramural research program by
supporting 4.0 additional postdoctoral positions under this objective. This enhancement continues
to  build upon the positive response by  the academic community to EPA's announcement of 50
postdoctoral positions for FY 1999.
FY 2001 Change from FY 2000 Enacted

EPM
•      (+$800,000) Technical support and oversight to states for DWSRF implementation.

•      (-$263,200) Reductions to technical support for Operator Certification and Small Systems.
       Reductions are possible in these areas due to early state progress in achieving compliance
       with new requirements.

•      (+$467,700) Technical assistance to states and tribes for implementation of existing and new
       drinking water regulations.

•      (+$339,000) Resources to provide basic support for the development of the Contaminant
       Candidate List (CCL) 2, which is required in the 1996 SDWA Amendments to be issued hi
       2003

•      ( +$2,376,200)  Resources to provide fundamental support for all rule-making activities,
       including expanding data on occurrence, risk analysis and assessment, and possible treatment
       technologies for those contaminants in the Research Priorities category.  Cross-cutting
       regulatory  infrastructure includes: 1) developing methods and  models for health risk
       assessment (i.e., sensitive population considerations), 2) analytical methods and laboratory
       certification, 3)  economic and cost/benefit methods and data, 4) small system treatment
       technologies, and 5) treatment plant optimization approaches.

•      (+$1,294,100)  The Agency will  conduct major  risk assessments to support regulatory
       determinations for the CCL, complete risk assessments for sensitive subpopulations hi
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      support  of other  drinking  water  standards,  and  implement  risk communication
      responsibilities.

      (+$383,000)  Resources are for technical  support for implementation of source water
      assessment programs.

      (+$300,000) Under a coordinated government-wide effort to combat terrorism, EPA will
      work with water utilities undertaking measures to safeguard water supplies from terrorist
      acts.

      (+$675,000) Increased resources are for technical support to states for UIC Class V program
      implementation.

      (+$397,400)  Increased resources will support continued implementation of a nationwide
      survey offish tissue contamination.

      The 2001 Request is $ 16,842,800 below the 2000 Enacted budget level due to Congressional
      earmarks received during the appropriations process but not part of the 2001 President's
      Request.

      (-3.8 total workyears) Reflects a workyear decrease in accordance with fiscal year 2000
      Appropriations language.

      (+$3,733,300) Reflects payroll cost of living increases and enrichment  and increased
      working capital fund requirements.
S&T
•      (+$2,000,000) Resources to undertake an assessment of the vulnerability, and the methods
       to reduce the vulnerability, of the public water supply to possible terrorist actions.

•      (+$ 108,600) Reflects payroll cost of living increases and enrichment.

STAG

•      (+5,000,000) This increase is to the DWSRF for continuing to expand the base of funding
       available to states for replacing and  improving the nations aging drinking water
       infrastructure.

       The 2001 Request is $94,406,900 below the 2000 Enacted budget level due to Congressional
       earmarks received during the appropriations process but not part of the 2001 President's
       Request.
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       Research

S&T

       (+$5,000,000)   The Safe Drinking Water Act Amendments of 1996 required the EPA to
       publish a list of unregulated contaminants to aid in priority setting for the Agency's drinking
       water program.  The existing Contaminant Candidate List (CCL) categorizes 60 chemicals
       and microbes where additional research in the areas of health effects, analytical methods and
       /or treatment is necessary to provide a sound scientific basis for regulatory decision making.
       These funds will increase support for research on the contaminants identified in the CCL,
       as well as other drinking water research priorities, consistent with existing research plans and
       the CCL Research Plan being developed in FY 2000.

       (-$6,252,100) The 2001 request is $6,252,100 below the 2000 Enacted budget level due to
       Congressional earmarks received during the appropriations process that are not part of the
       2001 President's Request,

•      (+$2,418,000)   The R&D program, including infrastructure support costs, is spread across
       eight of the ten goals in the Agency's GPRA/budget structure. Based on a review of actual
       infrastructure utilization under each goal (i.e., utilization of workyears and associatedPC&B,
       travel, operating expenses, and working capital fund), adjustments are being made across
       goals to more accurately reflect expectations for use in FY 2001.

Annual Performance Goals and Performance Measures

1994 Drinking Water Health Standards

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

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

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

In 1999    91 % of the population served by community water systems received drinking water meeting
          all health-based standards in effect as of 1994, up from 83% in 1994.

Performance Measures:                           FY 1999        FY2000       FY2001
                                              Actuals         Estimate       Request

Population served by non-community, non-transient
drinking water systems with no violations during the year

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of any federally enforceable health-based standards that
were in place by 1994.

Population served by community drinking water systems
with no violations during the year of any federally
enforceable health-based standards
that were in place by 1994.

Population served by CWSs that will receive drinking
water for which there have been no violations during the
year of any federally-enforceable health-based standards
that were in place by 1994.
                  96
                  96
                  91
                  91
   91
            % Population
            % Population
                           % Population
 Baseline:    In 1998,85% of the population that was served by community water systems and 96% of the population
            served by non-community, non-transient drinking water systems received drinking water for which no
            violations of Federally enforceable health standards had occurred during the year.

Drinking Water Systems Operations

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

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

In 2000     At least 100 eligible drinking water systems will have initiated operations that will 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:
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.

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

DWSRF projects that have
 initiated operations (cumulative).
FY 1999
Actuals
FY2000
Estimate
                  1200
FY2001
Request


 1800


 60%
  792
                  100
                 450
Agreements


Water systems



CWSs


Projects
Baseline:    to FY99, there were 792 DWSRF assistance agreements to community andnon-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.
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New Drinking Water Health Standards

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

Performance Measures:                               FY 1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

States lhat have adopted the lESWTR/Stage 1 DBF.                                       35        States

States that have adopted the CCR.                                                       35        States

States that have adopted the PN.                                                        25        States

Baseline:    Estimates for the end of 2000 are: 17 states have adopted the lESWTR/Stage 1 DBF, 17 states have
            adopted the CCR, and 10 states have adopted the PN.

Rules for High-Risk Contaminants

In 2001      Expand public health protection through: 1) promulgation of new regulations—the Long-term 1 Enhanced
            Surface Water Treatment Rule, arsenic, ground water, radionuclides, filter backwash, and 2) making
            determinations whether or not to regulate potentially harmful contaminants from the CCL.

In 2000     2 regulations - radon & arsenic - will be promulgated/proposed respectively,  & 5  rules (Stage 1
            Disinfection Byproductjlnterim Enhanced Surface Water Treatment, Variances & Exemptions, Consumer
            Confidenc Rprt & primacy revisions) will be implemented to ensure protection from  high-risk
            contaminants.

In 1999     EPA promulgated the monitoring of unregulated  contaminants  rule ensuring that the  highest risk
            contaminants are identified and managed.

In 1999     EPA issued and began implementing two protective drinking water standards for high- risk contaminants,
            including disease-causing micro-organisms (Stage I Disinfection/Disinfection Byproducts  and Interim
            Enhanced Surface Water Treatment Rules).

In 1999     EPA developed" major risk analyses for microbial and chemical contaminants to support  selection of
            contaminants to be regulated.

Performance Measures:                               FY 1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

Risk analyses completed in support of new regulations.                                    4        Analyses

Regulatory determinations for
potentially harmful contaminants.                                                       5        Determinations

States, including DC and PR, that have received training
and technical assistance on 4 of
the rules that are being implemented.                                    52                       States, DC, PR

States submitting primacy revisions and number with


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signed extension agreements for primacy.                               30/20                      States

Risk analyses for microbial/chemieal contaminants          1                                        List

Regulations promulgated that establish protective levels
 for high-risk contaminants                              2                                        Rules

Availability of monitoring of
unregulated contaminants rule.                           1                                        Regulation

Regulations promulgated/proposed.                                      2             5          Regulations

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

Source Water Protection

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

In 2000      States and community water systems increase 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:                              FY1999       FY2000        FY200I
                                                   Actuals         Estimate        Request

Population served by community water systems that are
implementing efforts to protect
their source water resources.                                         20 million       36 million   People

CWSs implementing efforts to protect
their source water resources.                                         4,500          6,500       CWSs

CWSs with ground or surface water
protection programs in place"                         11,011                                     CWSs

States that are implementing their EPA-approved source
 water protection assessment programs.                                40                         States

Baseline:    Currently, there is no baseline because the first full year of implementation of source water assessments
            is not until 2000. EPA has defined implementation as undertaking 4 or more of 5 stages of source water
            protection.

Underground Injection Well Management

In 2001      Through the UIC program, EPA will contribute to the protection of ground water sources of drinking
            water from potential endangerment.

In 2000      Increase protection of ground water resources by managing underground injection wells.
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In 1999     The draft regulation for UIC Class V wells that will protect groundwater sources of drinking water from
            potential endangerment was completed and made available for public comment in fiscal year 1999. The
            final rule was published in the Federal Register on December 7, 1999.

In 1999     Data for underground injection wells tested and passed for mechanical integrity is expected to be available
            in March 2000.
Performance Measures:
FY 1999
Actuals
FY 2000
Estimate
States that have formally adopted the Class V rule.

Class IV/V wells (by well type) brought under specific
controls through permits or closures.

Issue proposed Phase 2 UIC Class V regulatory action.

Availability of UIC Class V Regulation                 0

Underground Injection wells tested and
passed for mechanical integrity                        TBD

States, including DC and PR, that have received
training and technical assistance on the Class V Rule.

UIC wells plugged as a direct action by the UIC program
or indirectly by another program working
in partnership with UIC to protect
ground water sources of drinking water.
                500
FY2001
Request

34
                500

                1
                52
States


Wells

Action

Final Reg


% Wells


States, DC, PR
                725
                1,500
            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 2001     12% of the nation's river miles and 17% of nation's lake acres will have been assessed to determine if they
            contain fish and shellfish that should not be eaten or should be eaten in only limited quantities, (supports
            CWAP)

In 2000     10% of the nation's river miles and 16% of the 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.
            (supports CWAP)

In 1999     7% of river miles and 15% of lake acres were assessed for the need for fish advisories.
Performance Measures:
Lake acres assessed for the need for fish advisories and
compilation of state-issued fish consumption
advisory methodologies (cumulative).
FY 1999
Actuals
15
FY 2000
Estimate
16
FY2001
Request
17
% lake acres
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Assessed river miles, lake acres, and estuary square
miles that have water quality supporting designated
beneficial uses, where applicable, for
fish and shellfish consumption.

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).
25
                no target
40
                10
                no target
40
                12
States
            % River miles
Baseline:    In 1999, 7% of the Nation's rivers and 15% of the Nation's lakes were assessed to determine if they
            contained fish that should not be eaten or should be eaten in only limited quantities. In September 1999,
            25 states/tribes are monitoring and conducting assessments based on the national guidance to establish
            nationally consistent fish advisories. As of the  1996 Report to Congress on the National Water Quality
            Inventory, 85% of assessed river and stream miles; 65% of assessed lake, reservoir, and pond acres; and
            76% of assessed estuaries square miles supported their designated use for fish consumption.  For shell fish
            consumption, 73% of assessed estuaries met this designated use.

Increase Information on Beaches

In 2001     Reduce exposure to contaminated recreation waters by increasing the information available to the public
            and decision-makers. (Supports CWAP)

In 2000     Reduce exposure to contaminated recreational waters by increasing information available to the public and
            decision-makers. (Supports CWAP)

In 1999     Data entered for 26 states into the public right-to- know database on beach monitoring and closure.
Performance Measures:
FY1999
Actuals
Beaches for which monitoring and closure data is
available at http://www.epa.gov/OST/beaches/
(cumulative).                                        1,403

Assessed river miles, lake acres, and estuary square miles
 that have water quality supporting designated beneficial
 uses, where applicable, for recreation.

States for which data is entered into the public right-to-
know database on beach monitoring and closures.        26
FY2000
Estimate
                1,800
                no target
FY2001
Request
                2,200
                no target
            Beaches
                                            States
Baseline:    By the end of FY1999, 33 states had responded to EPA's first annual survey on state and local beach
            monitoring and closure practices, and EPA made available to the public via the Internet information on
            conditions at 1,403 specific beaches. As of the 1996 Report to Congress on the National Water Quality
            Inventory, 79% of assessed river and stream miles; 75% of assessed lake, reservoir, and pond acres; and
            76% of assessed estuaries square miles met their designated uses for recreation.
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Drinking Water Designated Use
In 2001     Assess river miles, lake acres, and estuary square miles that have water quality supporting designated uses,
            where applicable, for drinking water supply.

In 2000     Assess river miles, lake acres, and estuary square miles that have water quality supporting designated uses,
            where applicable, for drinking water supply.
Performance Measures:
Assessed river miles/lake acres/estuary square miles
that have water quality supporting designated beneficial
uses, where applicable, for drinking water supply.
FY1999        FY2000        FY2001
Actuals         Estimate        Request
                no target        no target    Rivers, etc.
Baseline:    As of the 1996 Report to Congress on the National  Water Quality Inventory, 84% of
            assessed river and stream miles and 75% of assessed lake, reservoir, and pond acres have
            water quality supporting designated uses for drinking water supply.

Research

Safe Drinking Water Research (Microbial)

In 2001     Reduce uncertainties and improve methods associated with the assessment and control of
            risks posed by exposure to microbial contaminants in drinking water with a focus on the
            emerging pathogens on the CCL.

In 2000     Reduce uncertainties and improve methods associated with the evaluation and control of
            risks posed by exposure to microbial contaminants in drinking water

In 2000     An interim report on modeling methods for estimating the vulnerability of ground water to
            viral contamination has been delayed until FY 2000,
Performance Measures:
Interim report on modeling methods for estimating
the vulnerability of ground water to viral contamination.

Report on waterbome 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 on occurrence of CCL-related pathogens in
source and drinking water, such as
mycobacterium and Aeromonas
FY 1999
Actuals
FY 2000
Estimate
FY 2001
Request
                09/30/2000
                                            report
                                            evaluation
                            description
                                            report
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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.                                                   2

Baseline:    Provide methods to assess the vulnerability of ground water supplies to viral contamination
            to support decisions on the necessity to disinfect these supplies.
                                            studies
Safe Drinking Water Research (DBFs)

In 2000     Reduce uncertainties and improve methods associated with the evaluation and control of
            risks posed by exposure to disinfection by-products in drinking water.
Performance Measures:
Report assessing the feasibility of
attaining/constructing refined DBF
exposure information for extant
epidemiologic drinking water studies.

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.
FY 1999
Actuals
FY 2000
Estimate
FY2001
Request
                 1
Baseline:    It has been recently discovered that minute concentrations of halogenated disinfection by-
            products (DBFs) are produced with chlorine disinfection reactions. These DBF compounds
            might have long term health effects. Alternative disinfection technologies like ozone and
            chlorine dioxide-produce fewer or no chlorinated DBFs and have been proposed as chlorine
            alternatives. However, these alternatives will also produce potentially, undesirable chemical
            by-products that need characterization and identification so that informed risk management
            decisions are  made. For example, disinfection with ozone produces various aldehydes,
            ketones, and most notably an increase in brominated by-product compounds. The bromated
            compounds are currently suspected of having carcinogenic and reproductive health risks.
            The numbers  and variety of aldehydes and ketones are largely unidentified and therefore
            risks are also unknown.
                                            report
                                            report
                            report
                                                  11-32

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Verification and Validation of Performance Measures

Goal 2 Objective 1

PerformaEce 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.

Performance Database: Safe Drinking Water Information System (SDWIS)

Data Source: States, Regions for Direct Implementation (DI) states

QA/QC Procedures: SDWIS has numerous edit checks built into the software to reject erroneous
data. There are quality assurance manuals for states and regions to follow to ensure data quality.
EPA offers training to states on data entry and data retrieval. EPA also provides tools, such as a
trouble shooters guide and an error code database, for states to use when they have questions on how
to enter or correct data.

Data Quality Review: Quality assurance audits of OGWDW's QA/QC processes, including those
for SDWIS, are carried out every three years. This effort is coordinated by the QA division. Most
recent was completed July 1999.

Data Limitations: SDWIS data quality has been problematic. It has been demonstrated that there
are discrepancies between SDWIS data and state databases. In addition, utilities have pointed out
specific data quality problems.

New/Improved Data or Systems: The Data Reliability Action Plan was created and is being
implemented to address data quality problems.


Performance Measure: High-use beaches for which data is entered into the public right-to-
know database on beach monitoring and closure

Performance Database: National Health Protection Survey of Beaches Information Management
System

Data Source: State and local governments

QA/QC Procedures: Data are entered as reported by state/local governments.

Data Quality Review: n/a
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Data Limitations: Not all government entities report data for their beaches. Possible lack of
consistency between jurisdictions.

New/Improved Data or Systems: n/a
Performance Measure: Number of digitized maps entered into the public right-to-know
database on beach monitoring and closure

Performance Database: National Health Protection Survey of Beaches Information Management
System

Data Source: State and local governments

QA/QC Procedures: Data are entered as reported by state/local governments.

Data Quality Review: n/a

Data Limitations: Not all government entities report data for their beaches. Possible lack of
consistency between jurisdictions.

New/Improved Data or Systems: n/a

Coordination with Other Agencies

      The 1996 SDWA amendments include a provision that mandates a joint EPA/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 Centers for Disease Control and Prevention
(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.
                                        11-34

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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 Safe Drinking Water Act.

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

•     Collaboration with USGS.  EPA and USGS have identified the need to engage in joint,
      collaborative field activities, research and testing, data exchange, and analyses, such as the
      occurrence of  unregulated contaminants, the environmental  relationships affecting
      contaminantoccurrence5evaluationof 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. 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 Total Maximum Daily Loads. EPA cooperates with the Departments of
the Army, Interior, Agriculture and the National Oceanic and Atmospheric Administration to
manage  the risks associated with contaminated sediments, which  are the major sources of
contamination offish.

      Research

      While EPA is the federal agency with the mandate to assure the safety of drinking water,
other federal and non-federal entities  are conducting research that compliments 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), the National

                                        11-35

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Cancer Institute (NCI), and the National Institute of Environmental Health Sciences (NIEHS).
Research related to children's risk and assessing exposures to children is also being conducted in the
Food and Drug Administration (FDA). Many of these research activities are being conducted in
collaboration with EPA scientists. The private sector, particularly the water treatment industry, is
conducting research in  such areas as analytical methods,  treatment technologies, and  the
development and maintenance of water resources. A Microbial/Disinfection By-Product Research
Council was established several years ago with the American Water Works Association Research
Foundation(AWWARF)and other stakeholder groups to coordinate research on microbialpathogens
and DBPs, Research on arsenic is coordinated through joint participation of EPA, AWWARF and
the Association of California Water Agencies on a technical advisory group and project advisory
committees.

       In addition to research on contaminants of current regulatory concern such as DBPs, arsenic
and Cryptosporidium, outside entities are also conducting research on potential candidates for future
regulation.  In March 1998, EPA published a list of these contaminants called the Contaminant
Candidate List (CCL). Research at EPA to address priority needs in health effects, exposure, risk
assessment and analytical methods  for chemicals and microbial pathogens on the CCL is being
coordinated with research efforts in CDC, NIEHS, Department of Defense (DOD), and FDA.
Interactions with external stakeholder groups have also been initiated which 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 for the contaminants
found on the CCL.  EPA is also working with USGS to evaluate in the field newly developed
methods for measuring microbes in potential sources of drinking water.

Statutory Authorities

Safe Drinking Water Act

Clean Water Act

Toxic Substances Control Act
                                         11-36

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                           Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

                                Clean and Safe Water


Objective #2: Conserve and Enhance Nation's Waters

      By 2005, conserve and enhance the ecological health of the nation's (state, interstate, and
tribal) waters and aquatic ecosystems -- rivers and streams, lakes, wetlands, estuaries, coastal areas,
oceans, and ground waters— so that 75 % of waters will support healthy aquatic communities.
                                 Resource Summary
                                 (Dollars in thousands)

Conserve and Enhance Nation's Waters
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
^



Water Quality Criteria and Standards (CWAP)
Wetlands (CWAP)
FY 1999 FY 2000
Enacted Enacted
$355,049.8 $381,485.2
$181,667,6 $179,189.5
$19,852.9 $30,601.9
$153,529.3 $171,693.8
901.8 965.4
Key Programs
(Dollars in thousands)
FY1999
Enacted
$19,110.9
$15,694.9
National Estuaries Program/Coastal Watersheds (CWAP) $16,528.3
South Florida/Everglades (CWAP)
Chesapeake Bay (CWAP)
$2,869.3
$20,361.5
FY 2001 FY 2001 Req. v.
Request FY 2000 Ena.
$438,783.0 $57,297.8
$163,681.3 ($15,508.2)
$30,572.4 ($29.5)
$244,529.3 $72,835,5
948.9 (16.5)


FY2000 FY2001
Enacted Request
$18,545.1 $22,765.0
$15,730.0 $17,315.2
$18,029.2 $16,135.0
$2,923.0 $2,938.4
$20,308.9 $19,517.4
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Great Lakes (CWAP)

Gulf of Mexico (CWAP)

Long Island Sound (CWAP)

Pfiesteria (CWAP)

Pacific Northwest (CWAP)

Lake Champiain (CWAP)

State Pollution Control Grants (Section 106) (CWAP)

State Water Quality Cooperative Agreements (CWAP)

State Wetlands Program Grants (CWAP)

CWAP - Related Research

EMPACT

Marine Pollution (CWAP)

Water Quality Monitoring and Assessment (CWAP)

Rent, Utilities and Security

Administrative Services

Regional Management
$5,395,3
$3,798.9
$900,0
$2,500.0
$1,022.5
$2,000.0
$115,529,3
$19,000.0
$15,000.0
$0.0
$653.9
$0.0
$0.0
$0.0
$511.4
$0.0
$3,263.7
$4,196.0
$975.0
$100.0
$1,043.2
$2,187.3
$115,529.3
$19,000.0
$15,000.0
$2,646.9
$125,0
$7,580,0
$9,762.6
$16,579.0
S2,510.7
$315.8
$4,111.1
$4,019,5
$500.0
$250.0
$1,064.8
$1,000.0
$160,529.3
$19,000.0
$15,000,0
$2,611.2
$0.0
$8,059.8
$11,778.7
$18,456.7
$2,644.4
$482.1
FY 2001 Request

       The Administration's Clean Water Action Plan (CWAP) provides 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 implement Total Maximum Daily Load (TMDL) programs
to establish the analytic underpinning for watershed decisions. In addition to providing $45 million
in additional grants to states to develop TMDLs, EPA will provide up-to-date scientific tools (such
                                           11-38

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 as easy-to-use, geographically-based models), training, and technical assistance to support state and
 tribal TMDL programs. These TMDLs will meet the requirements of Clean Water Act Section
 303(d), This Section also 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.

i   i information
   Being
   Processed
                                                                                        Haaaii
                                                                                      Puerto Rico
                                                                                      Vi^in Islands
                                                                     vvEPA
 * This map is a representation of threatened and impaired streams, rivers, coastlines, estuaries and
 lakes. The shading show the miles impaired/threatened within an 8-digit Hydrologic Unit Code
 (HUC), divided by the total number of water miles within the HUC.

       The Agency will continue to support comprehensive water quality assessmentsthat 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.  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 guidance and Clean Water Act Section 3 03 (d)
 requirements. EPA will assemble and report state water quality assessments under Clean Water Act
 (CWA) Section 305(b).  EPA ensures that states and tribes are entering relevant water quality and
 related data into EPA's modernized national data Storage and Retrieval System (STQBET), An
 important use of state comprehensive water quality assessment programs and other data is the Index
 of Watershed Indicators (IWI), a eollaborativeexereise with EPA stakeholders to clearly characterize
 the condition and vulnerability of all of the Nation's watersheds and coastal waters. IWI data will
 be updated on a continuous basis and additional data layers developed to refine the system. In
                                          11-39

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addition, the Agency will continue its mapping (Geographic Information System) efforts to make
information more accessible to the public. This work will continue to be integrated into IWI.

       As part of the Clean Water Action Plan, EPA, in concert with the U.S. Department of
Agriculture (USD A), Department of Interior (DOI) and other Federal agencies, will work with the
states, tribes and territories to implement watershed restoration projects. The Agency will continue
the development of a tracking system to document the success of programs to reduce nutrient runoff
to America's waters. Working through the National Water Quality Monitoring Council, EPA is
cooperating on a comprehensive assessment of the effectiveness of nutrient reduction programs
which is scheduled to be completed in 2001.

       Critical to improving water quality is our refinement of water quality standards and sediment
quality standards. The Agency will continue to support states and tribes in incorporating risk
characterization analyses, priority setting, risk management decisions, and state/tribal adoption and
implementation of water quality standards based on revised criteria.  The Agency will continue to
enhance Better Assessment Science Integrating Point and Nonpoint Sources (BASINS), a powerful
geographic information system which links projected nonpoint source runoff with point source
discharges, to include more geographic and hydrological detail so that TMDL and National Pollutant
Discharge Elimination System (NPDES) permit writers can better address site-specific conditions.

       EPA will work with its state partners to ensure that they adopt into their standards a suite of
criteria to protect designated uses. In 2001, the Agency will continue to develop and publish
scientifically defensible criteria for a broad range of stressors and assist states and tribes in adopting
these criteria to protect public health, attain and maintain aquatic life and other designated uses, and
improve the chemical, physical, and biological integrity of the Nation's waters. EPA will develop
guidance materials for biological criteria and expand the number of Regional Office centers of
expertise. The Agency will also develop and enhance PC-based modeling software to support site-
specific metals criteria. By providing training and workshops, EPA will expand its work with tribes
to implement "Treatment in a Similar Manner as a State" provisions and establish final water quality
standards approved by EPA for waters under tribal jurisdiction. 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 taken on states'proposed water quality standards. In 2001, EPA will assure that actions are
taken within the statutory deadlines. In support of mis effort, the Agency will continue to refine a
comprehensive database on state water quality standards that will help ensure nationwide
consistency in state programs and 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 assist states and tribes in addressing sediment contamination
by making available the sediment quality criteria modeling package for desktop applications. EPA
will  also make its  work on toxicity testing available.  States need toxicity testing to evaluate
sediment quality,   make decisions about appropriate control measures, and implement  new
methodologies that  address a wider range of pollutants. The Agency, in cooperation  with the


                                          11-40

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Departments of Interior and Agriculture, will conduct place-based contaminated sediment recovery
demonstration projects. The Agency will develop guidance on how to interpret bioaccumulation
data in 2001.

       The Agency will continue to implement its Nutrient Strategy, employ states and tribes in
filling data gaps, and address implementation issues related to controlling eutrophication, including
such harmful algal blooms as pfiesteria.   Since the  process  for assessing and controlling
eutrophication is considered site-specific in nature, the best assistance will allow state and tribes to
choose the tools mat best fit their conditions (waterbody-specific guidance).  The Agency will
address the last group of ecosystems by establishing numeric criteria for nutrients (i.e., nitrogen and
phosphorus) that are tailored to reflect those waterbody types and geographical regions. EPA will
distribute and provide guidance and technical assistance for specific waterbody types (e.g., lakes,
rivers, and estuaries).

       The Agency will participate in a multi-media effort to identify contaminants that may disrupt
endocrine functions in fish, wildlife, and humans. The endocrine system plays an essential role in
human differentiation and growth - developing fetuses, and children may be the most sensitive
populations at risk for endocrine disruption. The Food Quality Protection Act (FQP A) and the Safe
Drinking Water Act (SDWA) authorize screening and testing of pesticides, commodity chemicals,
and drinking water source contaminants for endocrine disrupting potential.  The Office of Water
supports the work of the Endocrine  Disrupter  Screening and Testing Advisory  Committee's
(EDSTAC) to advise the Agency on a screening and testing strategy.
       In support of the Agency's Tribal Partnership initiative, the Agency will continue to support
the development, modification, and delivery of EPA training materials and workshops for tribes on
nonpoint source, watershed management, water quality monitoring, quality assurance and water
quality standards and criteria. The Agency will support the distribution of a National Tribal
Watershed Assessment Framework to support defensible, reproducible Tribal assessments of the
conditions of their watersheds and the sources of watershed impairments.

       As part of the Clean Water Action Plan, EPA will continue to direct technical and program
assistance to states to help them integrate their new Unified Watershed Assessments and Watershed
Restoration Action Strategies with their ongoing development and implementation of the TMDL
program. Unified Watershed Assessments are state-led efforts that integrate a variety of assessment
tools to identify those watersheds where aquatic systems do not meet clean water and other natural
resource  goals.  Restoration Action Strategies will provide comprehensive plans for actions
necessary to restore the health of the most impaired watersheds.  With EPA assistance, states will
continue to accelerate the pace of development and implementation of TMDLs for impaired waters
hi high priority watersheds. EPA will continue to support the Watershed Academy and its course
offerings and technical transfer efforts to better train state, tribal  and local agencies  in addressing
these watersheds.
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       The Agency will continue to build on successes and improvements achieved through
watershed and ecological restoration projects undertaken in 2000.  Based on these experiences,
additional tools and technical information will be provided to states, tribes, local governments, and
local watershed organizations in 2001 to address their priority water pollution and resource
degradation problems. These techniques will assist in determining actions needed to solve problems
and assist in setting milestones for evaluating progress toward environmental improvement. This
approach will contribute toward integrating EPA's  various programs  and activities  into the
watershed management approach. These programs include: TMDLs, water quality standards and
criteria, nonpoint source controls, permitting, enforcement, wetlands, coastal and marine, source
water protection, and management of contaminated sediments. The Agency will continue to 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, and coastal waters.

       EPA will reduce its targeted efforts through the National  Estuary Program, as all 28
Comprehensive Conservation and Management Plans (CCMPs) will be approved by 2001. EPA will
continue to work with states and others to implement CCMPs and watershed management plans for
coastal ecosystems in order to restore and maintain the health of degraded and threatened coastal
aquatic communities and recreational waters. EPA will continue to emphasize and support coastal
partnerships to assist local decision makers hi developing and implementing protection programs
for coastal watersheds, and will also continue to support, at a slightly reduced level, the application
of biological criteria, development of research plans and monitoring programs, implementation of
such plans pertaining to harmful algal blooms and other coastal and marine problems, coral reef
protection, invasive species efforts, and management and remediation of contaminated sediments.

       For coastal ports, EPA will work with federal and state partners and other stakeholders to
establish local planning groups to help ensure that comprehensive dredged material management
plans, including provisions for the beneficial re-use of dredged material, are developed to maintain,
restore, and improve the health of coastal ecosystems.  While the Agency will continue to manage
pollution sources subject to the Marine Protection, Research, and Sanctuaries Act; Clean Water Act;
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, the level of support provided to
the permitting and monitoring activities involved will decrease, resulting in a slower  pace for
completion of these activities and potentially less monitoring, site designation, or other activities
undertaken. Progress in these areas will depend on sound science derived from improved research
and monitoring efforts in coastal and marine waters.

       As part of the  Clean Water Action Plan, EPA will continue providing small grants to
non-profit organizations to support development of watershedpartnershipsandto advance watershed
restoration efforts. Priority in allocation of grant assistance will be given to organizations that have
the capacity to bring diverse interests together to find creative ways to restore and sustain the health
of aquatic systems on a watershed basis.  EPA,  in concert with the USDA and the National
Oceanographic and Atmospheric Administration  (NOAA), will also work with other Federal
agencies and states to dramatically increase the number of people involved in local organizations that


                                        11-42

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have "adopted" their watersheds and to encourage new efforts where none currently exist. A major
focus will be to engage students, seniors, business owners and employees and others not traditionally
involved in water resource issues to participate in ongoing community watershed efforts.

       Section 106 grants to states, tribes, and interstate agencies are a primary funding source for
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, $160,529,300 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 developing TMDLs, implementing  integrated wet weather strategies in
coordination with nonpoint source programs, and developing source water protection programs.
Tribes will continue to conduct watershed assessments and will maintain and improve their capacity
to implement water quality programs through monitoring, assessments, planning, and  standards
development.

       States are facing rapidly increasing workloads to expeditiously develop, in many cases
consistent with Court-ordered deadlines, critically-needed total daily maximum loads TMDLs for
their impaired water bodies. To assist states in addressing their TMDL needs, a targeted increase
in Section 106 grants of $45 million is requested with a cost-share requirement that the state provide
40 percent of the costs to develop TMDL allocations and implementation plans. These funds,
coupled with the state flexibility to use up to 20% of their increased Section 319 grants, and other
available funding sources are intended to provide sufficient resources to allow States to meet their
TMDL obligations in 2001 based on EPA's estimated costs for the new TMDL regulation proposed
in August 1999.

       Water Quality Cooperative Agreements (WQCA) will support the creation of unique and
innovative approaches to address requirements of the NPDES program, with special emphasis on
wet weather activities, i.e., storm water, combined sewer overflows, sanitary sewer overflows and
animal feeding operations. In the wet weather area, these grants have been invaluable in enabling
demonstrations of unique technical, as well as managerial and funding techniques for addressing wet
weather problems. Specifically these funds will be used to conduct special studies, demonstrations,
outreach and training efforts which will enhance the ability of the regulated community to deal with
non-traditional pollution problems in priority watersheds.  Within this objective, $19,000,000 is
requested for this program.

Geographic Initiatives

       EPA is requesting a significant new investment to restore water quality in the Great Lakes.
Under this $50 million initiative, EPA would provide matching grants to state and local governments
to clean up contaminated sediments, control stonnwater, restore wetlands, acquire greenways and
buffers, and control polluted runoff.  These grants would be competitively awarded by EPA and
would require states and/or local governments to provide at least 40 percent of total project costs


                                          11-43

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from non-Federal sources.  States or municipalities would use the funds to address existing "areas
of concern" (AOCs) that were defined in 1987 by the International Joint Commission — a joint
partnership between the United States and Canada.  These funds would support restorative and
protective actions in the 31 AOCs that fall wholly or partly in U.S. waters, and represent a dramatic
increase in support for Great Lakes states' and communities' efforts to preserve and enhance their
waterways. These targeted Great Lakes resources would supplement existing funds to develop plans
and projects to identify and remediate pollution problems in the region (including development and
implementation of Lakewide Management Plans), and would be managed in conjunction with the
efforts of the Great Lakes National Program Office as described in Goal 6, Objective 1.

       EPA will continue to support  targeted geographic watershed initiatives of national
importance, including the National Estuary Program, the Chesapeake Bay Program, Gulf of Mexico
Program, South Florida/Everglades, and the Pacific Northwest Forest Plan,  Special emphasis in
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 implementation  of the Interior Columbia Basin Ecosystem
Management  Project, the  Long Island Sound Office, and the Lake Champlain Management
Conference.

The Gulf of Mexico

       The Gulf of Mexico Program's goals are to protect human health and the food supply; to
protect, restore and enhance Gulf coastal and marine waters and its habitats that support living
resources; and to ensure the long-term use of the Gulf shores, beaches and waters.  To accomplish
these goals, the Gulf of Mexico Program has adopted a strategic assessment framework. The process
includes identifying: (1) the priority issues and annual performance goals to be addressed (i.e., public
health, nutrient enrichment, habitat protection and restoration, and control of invasive species); (2)
the priority watersheds and corresponding waterbodies/ segments/communities for focus; and (3)
the specific project needs in coordination with the Gulf States' Watershed Restoration Action
Strategies. Twelve coastal areas which include 30 of the 95 coastal watersheds are identified for
focus in'2001. Within these priority areas, the Gulf of Mexico Program will provide technical and
financial assistance to the Gulf States to implement voluntary, incentive-based measures to remedy
their priority  coastal environmental issues within 14 impaired Gulf coastal river and  estuary
segments, and will maintain that target each year to address 20 percent or 71 impaired segments to
reinforce Gulf State efforts to implement 5-year basin rotation schedules.
The Chesapeake Bay

       The Chesapeake Bay Program is a partnership between Maryland, Virginia, Pennsylvania,
the District of Columbia, the Chesapeake Bay Commission (a tri-state legislative body), and the
EPA, which represents the Federal government. The Bay Program was formed in 1983, and operates


                                          11-44

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               Targeted Areas for GMP Assistance =
               Coastal Watersheds          =
               Watershed Boundaries of
               Targeted Areas (8 digit HUC's)  =
                                                           (
                                               .   ,_   Pensacola Ba
                                               •\ Mobile Sav (UE^i Suwannee Rww3(e
                                               v ^
                                                 Mississippi Coastal Basins
                                                 Lake Pontchartrain
                                                         Tamp" Bay (NE
in a consensus fashion. The Bay Program has nine subcommittees which focus on specific issue
areas (e.g., toxics, nutrients, communications, etc), and all of the state jurisdictions and EPA are
represented on all of these subcommittees, which generally meet every six weeks.
       The Chesapeake Bay Program also has a Federal Agencies Committee, which was formed
in 1984 and has met regularly ever since. There are currently over 20 different Federal agencies
actively involved with the Bay Program through the Federal Agencies Committee.  The Federal
agencies have  operated over the past few years to implement the 1994 Agreement of Federal

                              A ores rrHJisy
               amsuti ssmm mmmmmmm mm mm m
                                                                     mm.
                                                        Ifflftf after           tot
                                                                IttiS, The ISO?

                                           11-45

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Agencies on  Ecosystem Management in the Chesapeake Bay,  which set specific goals and
commitments for Federally-owned lands and activities. In November 1998, EPA and over 20 other
Federal agencies signed a new Federal Agencies Chesapeake Ecosystem Unified Plan. The Unified
Plan contains 50 new commitments which implement the President's Clean Water Action Plan hi
the Chesapeake Region. Two of those new commitments related to the American Heritage Rivers
Program have already been met.
Wetlands

       EPA with other  federal agencies
supported the establishment of a goal of an
annual net gain of wetlands of 100,000 acres
by 2005. This will reverse historic trends of
wetland losses (see Figure 1).   EPA will
contribute to this wetlands quantity goal
through a number of programs, and will also
take steps to advance the national goal of an
increase in the quality of wetlands.

      Working with other federal agencies,
EPA  and the  Corps of Engineers will
implement Section 404 of the Clean Water
Act  to  protect  wetlands,  free-flowing
streams, and  shallow waters in  a fair,
flexible, and effective manner.  Program improvements will be implemented to ensure program
activities are effectively and consistently applied to the extent authorized by the Clean Water Act.
 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.

      EPA will encourage communities to restore wetlands and river corridors through projects that
involve citizen groups, corporations, youth,  landowners and local governments. The Five Star
Restoration Program funds these projects to restore environmental resources that have been lost or
degraded and provide community education on wetlands and river corridors.

      Building upon successful projects in a number of States, (see Figure 2) , EPA will help
States and Tribes develop programs to monitor the extent and condition of their wetlands. Biological
indicators will be used to evaluate the relative health of wetlands to determine the extent and causes
of disturbance. EPA will provide assistance in low-cost monitoring techniques, including volunteer
monitoring and satellite imagery.  The information collected will guide management decisions to
evaluate restoration success and to improve the quality of wetlands, addressing stressors including
polluted run-off, changes in hydrology, invasive species, and habitat fragmentation.
Figure 1 : Average Annual Net
Change in Wetland Acreage
200
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Source: USP
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r4 1374-83 1985-95 1992-97 2005
goal
National Wetlands fcwentory and
atural Resources Inventory
                                         11-46

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       A total of $ 15 million from the State and Tribal Assistance Grants appropriation is requested
to enable States and Tribes to develop and strengthen their programs to conserve, manage and restore
wetlands,  and to  support watershed-based wetland initiatives.  This will support regulatory
approaches such as permitting and water quality standards, as well as incentive-based programs,
training, and monitoring.
       Research

       The loss of ecosystems goes hand in hand with the loss of valuable renewable resources and
services such as wood for construction, water storage and flood control, biodegradation and removal
of contaminants from air and water, and pest and disease control.  Thus it is critical that we
understand the health of our ecosystems and identify the stressors that are contributing to forest
decline, widespread epidemics of toxic microorganisms in estuaries, reproductive failure of wildlife,
and the destruction of critical habitat.  Many of the problems of concern at the regional scale are
either a result of regionally distributed stressors such as acidic deposition or a cumulative result of
many small local problems such as local habitat alteration or nutrient enrichment.

       Under the Clean Water Act, states are required to develop designated uses for their waters.
This research will provide an improved scientific basis for determining designated uses, necessary
for improving existing water quality across the country. Research in this objective will increase
understanding of landscape characteristics and ecosystem structure and function, as well as reduce
uncertainty surrounding the effects of chemical, biological  and physical stressors on aquatic
ecosystemsand the integration of information for managing aquatic ecosystems. Research will focus
on identifying  and assessing critical  stressors in aquatic ecosystems and understanding  the
relationships between stressors such as habitat alteration, nutrient loadings, or chemical  pollutants
and  their impact on aquatic  ecosystems.  This information will be  useful in managing these
ecosystems and prioritizing restoration decisions.

       By 2001, EPA will develop the framework for diagnosing adverse impacts of chemical
pollutants in surface waters.  This  framework will develop methods for diagnosing chemical
stressors such as pesticides, nutrients, and industrial chemicals, and guide future research efforts to
determine their significance in the context of other stressors to aquatic  ecosystems. This research
will be particularly useful in evaluating the risks posed by chemicals that persist in the environment
and accumulate in the food chain, threatening wildlife and potentially human health. This research
will facilitate the assessment of ecological health of the nation's waters, providing water resource
managers with  a tool for determining whether their aquatic resources support healthy aquatic
communities.

       Key elements of this research will focus on the development of diagnostic methods, models
for determining total maximum daily loads (TMDLs), risks posed by chemical pollutants to wildlife,
contaminated sediments, and eutrophication and nutrient loadings.
                                          11-47

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       The research on diagnostic methods in this objective will provide an integrated approach to
developing stressor-response profiles  for  chemical,  biological and  physical  stressors  and
development of watershed diagnostics to identify critical stressors in an aquatic ecosystem. This
work will be useful in deriving protective criteria, strengthening the biological basis for designated
uses in state and Tribal water quality standards, improving the scientific foundation for point and
non-point source  TMDLs,  and determining appropriate and effective  watershed management
alternatives.

       Modeling and landscape characterization research will improve the development of TMDLs
and permits for point and non-point source discharges. Efficient methods for developing TMDLs
are greatly needed because of the increasing number of lawsuits  that require timely TMDL
development. Modeling research will develop  advanced predictive mathematical models to more
accurately characterize stressor sources, such as temperature, oxygen-demanding wastes, pathogens,
sediments, nutrients, metals, pesticides and other hazardous chemicals, particularly those associated
with sediment loads and aerial transport  and  deposition. Landscape characterization research
investigates methods for characterizing aquatic stressors at multiple scales.  Impairments (e.g.,
sediment loading) identified in one watershed can be inferred  to potentially  exist in another
watershed with similar landscape characteristics (e.g., agriculture on steep slopes).  This approach
provides a more efficient method for setting TMDLs, compared to using conventional monitoring
and modeling.

       Research in this objective will  also address bioaccumulation and biomagnification of
chemical contaminants. Chemicals that bioaccumulate are frequently deposited in sediments, where
they can adversely affect sediment biotaandtheorganismsdependent upon the benthic communities.
They can also move into the food chain where they may impact both human health and wildlife.
Sediment contamination can result from point and non-point sources of pollution such as industrial
discharges and stormwater runoff, respectively, and increased loadings of nutrients (e.g., nitrogen,
phosphorus).  Research will be conducted to evaluate exposure to contaminated sediments at the
population, community, and ecosystem scale.  Research will also include the development of
methods and approaches for assessing sediment and wildlife toxicity. EPA will also develop and
evaluate more cost-effective technologies and approaches for managing contaminated sediments,
emphasizing the identification of innovative  in situ solutions.

       In addition to  these areas,  research will be  conducted to understand the dynamics of
ecosystem response to eutropbication (the rapid growth of plant life in a water body resulting from
high nutrient  levels) that frequently includes hypoxia (a low oxygen condition) and increases in
harmful algal blooms.  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.                                                      :


                                         11-48

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       This research program is also supported through the Agency's Postdoctoral Initiative. The
FY 2001 request is the third year of the effort to enhance our intramural research program by
supporting 5 additional postdoctoral positions under this objective. This enhancement continues to
build upon the positive  response by the academic community to EPA's announcement of 50
postdoctoral positions for 1999.
                   Figure 2:  Biological Monitoring  Projects
                                                                MA
                                                                  O*
                                                              MDO
                             • State Project (11)
                             O Federal Project (7)
O  Local/Volunteer Project (3)
FY 2001 Change from FY 2000 Enacted
EPM
       (+$1,156,400) The Agency will begin the contaminated sediment demonstration projects
       outlined in the Clean Water Action Plan and publish the national sediment inventory
       database on the Internet, making the information available to the public.  We will also
       provide technical assistance and support to the Great Lakes states in implementing their
       remedial  action plans  and to states and tribes in developing  TMDLs that address
       contaminated sediments.

       (+$1,867,100) EPA will support the development and implementation of state water quality
       standards and criteria programs, especially where  we can enhance state development and
       implementation of TMDLs.

       (+$660,000) The Agency will increase grant awards to states for data collection and field
       validation studies supporting state adoption of nutrient criteria.

       (+$2,059,300)   For national monitoring efforts, including support for integrated data
       assessment tools to consolidate and coordinate various water quality data and activities, and
                                         11-49

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support for citizen,  state, and tribal  access  to  historical and  current  environmental
information (via modernized STORET),

(+$2,885,600) Reflecting investment in watershed activities, including technical support to
states for development of watershed restoration action strategies. Increases will also support
continued development of Remedial Action Plans for Areas of Concern in the Great Lakes
Basin.

(+$150,000) For pfiesteria activities, reflecting states' need to establish rapid response
programs for pfiesteria outbreaks, including developmentof monitoring protocols and public
outreach mechanisms.

(-$1,250,000) From coastal watershedprotectionand the National Estuary Program, reducing
support for development of management plans for coastal ecosystems because by 2001, all
28 NEPs will have approved comprehensive conservation and management plans (CCMPs).

(+$472,300) To support protection of ocean waters through programs to permit, monitor,
and designate/manage sites for the disposal of materials into ocean waters and to evaluate
discharges of wastewater into ocean waters.

(+$600,000) For the Five Star Grant program to restore wetlands and river corridors. It will
allow for 50 restoration projects involving hundreds of other partners, and, projected upon
experience, a total match of over $2.5 million.

(+$345,000) Provides for increases that will enable EPA to develop wetlands monitoring
protocols, work with the Corps and other partners to improve the success rate of wetlands
restoration, and identify geographic areas of special emphasis for targeting EPA's wetlands
resources.

(+$500,000) For the Watershed Assistance Grants  program, supporting community-based
watershed protection efforts through small, leveraged grants.

(-7.6 total workyears) Reflects a workyear decrease in accordance with fiscal year 2000
Appropriations language.

(+$1,315,300) Reflects payroll cost of living increases and enrichment and increased
working capital fund requirements.

The 2001 Request is $26,232,800 belowthe 2000 Enacted budget level due to Congressional
earmarks received during the appropriations process but not part of the  2001  President's
Request
                                   11-50

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STAG
S&T
       (+$45,000,000)  To assist states in addressing their TMDL development needs via a targeted
       increase in CWA Section 106 grants.  This increase, coupled with the required state
       contributions for this 106 increase, state flexibility to use up to 20% of their also increased
       Section 319 grant, and other financial assistance would provide sufficient resources to allow
       States to substantially meet their TMDL obligations in 2001 based on the estimated cost of
       the new TMDL regulation proposed in August 1999.

       (+$50,000,000)  For  competitively awarded grants to state and local governments  to
       implement Remedial Action Plans (RAPs) in identified Great Lakes areas of concern
       (AOCs), including implementation of stormwater pollution control, wetlands restoration,
       greenway land acquisition, and contaminated sediment remediation.

       The 2001 Request is $22,164,500 below the 2000 Enacted budget level due to Congressional
       earmarks received during the appropriations process but not part of the 2001 President's
       Request.
       (+$1,200,000) Resources supporting Requests for Applications (RFA's) for Science to
       Achieve Results (STAR) grants addressing the ecology and oceanography of Harmful Algal
       Blooms are realigned from Goal 8, Objective 1, Ecosystems Research to Goal 2, Objective
       2 in order to reflect a more direct relationship to programmatic needs.

       (-$509,400) The 2001  request is $509,400 below the 2000 Enacted budget level due to
       Congressional earmarks received during the appropriations process that are not part of the
       2001 President's Request.

       (-$1,055,300) The R&D program, including infrastructure support costs, is spread across
       eight of the ten goals in the Agency's GPRA/budget structure. Based on a review of actual
       infrastractureutilization under each goal (i.e., utilization of workyears and associated PC&B,
       travel, operating expenses, and working capital fund), adjustments are being made to more
       accurately reflect expectations  for use in FY 2001.
                                         11-51

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Annual Performance Goals and Performance Measures
Clean Water Action Plan Implementation

In 2001      Water quality will improve on a watershed basis such that 550 of the Nation's 2,150
            watersheds will have greater than 80 percent of assessed waters meeting all water quality
            standards, up from 500 watersheds in 1998.

In 2001      Restore and protect watersheds through implementation  of Clean Water Action Plan
            (CWAP) strategies.

In 2000      Restore and protect watersheds through implementation of CWAP strategies.

In 2000      Environmental improvement projects will be underway in 350 high priority watersheds as
            a result of implementing activities under me CWAP.

In 1999      As part of the Clean Water Action Plan, 56 states and territories and 84 tribes are conducting
            or have completed unified watershed assessments, with support from EPA, which identified
            aquatic resources in greatest need of restoration or prevention activities.

In 1999      23 States submitted implementation plans to EPA (either as separate plans or as part of water
            quality management plans or other watershed planning process) that describe the processes
            for implementing TMDLs developed for waters impaired solely or primarily by nonpoint
            sources.
Performance Measures:
Watersheds that have greater than 80% of assessed
waters meeting all water quality standards.

TMDLs established by EPA (cumulative).

TMDLs scheduled to be completed by the
end of 2001 (cumulative).

TMDLs submitted by the state (cumulative).

State-established TMDLs approved (cumulative).

Impaired, assessed river miles, lake acres, & estuary
square miles mat 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.

States submitting implementation plans for TMDLs
for waters impaired solely or primarily by NPS
FY1999
Actuals





FY2000
Estimate

157
2,075
1,369
1,369
FY 2001
Request
550
251
3,319
2,189
2,189

8-digit HUCs
TMDLs
TMDLs
TMDLs
TMDLs
                no target
no target
                no target
no target
23

 n-5.2
            States

-------
States that are conducting or have
completed unified watershed assessments               56                                         States

Submission, with Nat'l Watershed Forum, of a
Watershed Rest. Progress Report to the President, etc.
eval. progress & recommend, any actions needed to
improve progress toward meeting clean water goals.                     1                           Report

High priority watersheds in which environmental
 improvement projects are underway as a result of
implementing activities under the CWAP.                              350                         Watersheds

Baseline:    The state submitted 1998 303(d) lists  identify the TMDLs that need to be established.  Thus, the
            baseline against these 1998 lists is zero.  The baseline  for waters covered under Watershed
            Restoration Action Strategies (WRAS) will not be available until the FY2000 reporting cycle. As
            of the 1996 Report to Congress on the National Water Quality Inventory, 68% of assessed river and
            stream miles; 69% of assessed lake, reservoir, and pond acres; and 69% of assessed estuary square
            miles have water quality supporting designated beneficial uses for aquatic life support. As of 1998
            state reports, 500 watershed had met the criteria for water quality improving on a watershed basis.
            For a watershed to be counted toward this goal, at least 25% of the segments in the watershed must
            be assessed within the past 4 years consistent with assessment guidelines developed pursuant to
            section 305(b) of the Clean Water Act.

Dredged Material/Ocean Disposal

In 2001     Encourage  comprehensive planning for the management of dredged material, and assure
            environmentally sound disposal of dredged material.

In 2000     Appropriate action taken with regard to dredeged material ocean disposal site designation in one
            additional case.

In 1999     Appropriate action taken with regard to dredged material  ocean disposal site designation in one
            additional case. (Base of 77)

Performance Measures:                               FY1999        FY2000         FY2001
                                                    Actuals         Estimate         Request

Facilitate establishment of Local Planning Groups to
develop comprehensive plans for
dredged material management.                                                        3           Local Plan Grps

Participate in the development of local comprehensive
plans for dredged material management (cumulative).                                   3           Plans

Appropriate actions taken re: dredged
material ocean disposal                               1                                           Action

Additional appropriate actions taken (e.g., site
designation, designations, or Site Management and
Monitoring Plan development).                                       1                           Actions
                                                       11-53

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Baseline:    As of January 2000, there are 4 existing Local Planning Groups and 4 existing local comprehensive plans
            for dredged material management.

State/Tribal Water Quality Standards

In 2001     Assure that States and Tribes have effective, up-to-date water quality standards programs adopted in
            accordance with the Water Quality Standards regulation and  the Water Quality  Standards program
            priorities.

In 2001     16% of Tribes will  have water quality monitoring and assessment programs appropriate  for their
            circumstances and will be entering water quality data into EPA's national data systems.

In 2000     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 1999     Provided to States and Tribes tools for risk characterization of and decision making regarding surface
            water contaminants, including PBTs and nutrients, that allow them to set and meet their own water quality
            standards.

In 1 999     One additional Tribe established an effective water quality standards program for a cumulative total of 1 5
            Tribes with effective water quality standards programs. In addition, 7 more tribal submissions are
            currently under review.

In 1 999     EPA reviewed and approved 1 7 revised water quality standards for 1 7 states that reflect current guidance,
            regulation, and public input and promulgated replacement Federal standards for 1 additional state.
Performance Measures:
States with new or revised water quality standards that
EPA has reviewed and approved or disapproved and
promulgated federal replacement standards.

Tribes with monitoring and
assessment programs (cumulative).

Pilot STORET/305(b) reporting projects with Tribes.

Models,methods,criteria developed/available for risk
characterization of surface water contaminants.

Tribes with water quality standards
adopted and approved (cumulative).
FY 1999
Actuals
                                                     18
FY2000
Estimate
                15
                                                                                     FY2001
                                                                                     Request
                30


                16

                9
                                                     15
                22
                27
                                                                                                 States


                                                                                                 % Tribes

                                                                                                 Pilot projects


                                                                                                 List


                                                                                                 Tribes
Baseline:     As of 1999, less than 5% of tribes have water quality monitoring and assessment programs appropriate
            for their circumstances and are entering water quality data into EPA's national data systems. State water
            quality standards program reviews are under a 3-year cycle as mandated by the Clean Water Act under
            which all states maintainupdated water quality programs; therefore, the Agency will review approximately
            one-third of all state/tribal programs each year.  EPA must review and approve  or disapprove state
            revisions to water quality standards within 60-90 days after receiving the state's package. In FY99, there
                                                        11-54

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            was a backlog of 70 submissions from 32 states for which EPA had not taken the appropriate action. At
            the end of FY 1999, 15 tribes had adopted and approved water quality standards.

Protecting and Enhancing Estuaries

In 2001      Restore  and protect  estuaries through the implementation of Comprehensive  Conservation and
            Management Plans (CCMPs).

In 2000      All Tier I-V National Estuary Programs have completed Comprehensive Conservation and Management
            Plans (CCMPs) - blueprints for protecting and enhancing the estuaries.

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        FY2000        FY2001
                                                  Actuals         Estimate        Request

Priority actions or commitments initiated nationwide as
part of the National Estuary Program since approval
of the first CCMP in  1991 (cumulative).                                               82%        Actions

Acres of habitat preserved, restored and/or created
nationwide as part of the National
Estuary Program (cumulative).                                                        50,000      Acres

Completed CCMPs                                 21              28                          CCMPs

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

Gulf of Mexico

In 2001      Assist the Gulf States in implementing watershed restoration action strategies (WRAS) or their equivalent
            in 14 priority coastal river and estuary segments.

In 2000      Assist the Gulf states in implementing watershed restoration action strategies (WRAS) or their equivalent
            in 14 priority impaired coastal river and estuary segments.

In 1999      Reduced the number of nonpoint sources contributing to the total load of fecal contamination and nutrients
            in Gulf waters, in three priority Gulf coastal watersheds.

In 1999      Initiated the development of marine conservation plans for Gulf Coast seagrasses in 3 Gulf States.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Impaired Gulf coastal river and estuary segments
implementing WRAS or equivalent.                                  14              14          Segments

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


                                                      11-55

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established TMDLs approved.                                         no target        no target     TMDLs

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.                                           no target        no target     Miles, etc.

Gulf states with marine conservation
plans for seagrasses.                                  3                                           States

Gulf watersheds with State actions to reduce
NFS loads to Gulf growing waters.                     3                                           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.

Great Lakes Implementation Actions

In 2001      Funds will be awarded for 20-25 projects to assist with restoring water quality in the Great Lakes Areas
            of Concern. These projects may include cleaning up contaminated sediments, controlling polluted runoff
            and stormwater, restoring wetlands, and acquiring peenways and buffers.

Performance Measures:                               FY1999         FY2000        FY2001
                                                    Actuals         Estimate        Request

Projects funded to improve water quality in
Great Lakes Areas of Concern.                                                        20-25       Projects

Baseline:    These projects will be the first under a new initiative to restore water quality in the Great Lakes.

Chesapeake Bay Habitat  '

In 2001      Improve habitat in the Chesapeake Bay.

In 2000     Improve habitat in the Chesapeake Bay.

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
                                                    Actuals         Estimate        Request

Pounds reduction, from 1985 levels, of nitrogen and
phosphorus loads entering Chesapeake Bay (cumulative).                                 71/7 million Pounds

Wastewater flow to the Chesapeake Bay treated by


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Biological Nutrient Removal (cumulative).              32             40             49          %WWflow

Acres of submerged aquatic vegetation (SAV)
present in the Chesapeake Bay (cumulative).            63,500         71,500         78,000      Acres

Acres of aquatic reef habitat designated, with
construction and restoration of oyster reef
habitat to occur within those areas.                     11,000         11,000                     Acres

Agricultural, recreational and public lands that
have voluntary integrated pest management (IPM)
practice established in the Chesapeake
Bay watershed (cumulative).                          79             70             75          % lands

Stream miles of migratory fish habitat reopened
through provision of fish passages (cumulative).         524            877            1,172       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 2001      40% of Tribes will have a "water program environmental presence" (i.e.,  one or more persons, as
            appropriate, with environmental capability to advise Tribal governments on developing and implementing
            programs).

Performance Measures:                               FY1999       FY2000        FY2001
                                                   Actuals        Estimate        Request

Tribes with a water program presence (cumulative).                                     40          % Tribes

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

Wetland and River Corrido'r Projects

In 2001      Support wetlands and stream corridor restoration andmanagement and assessment/monitoring of overall
            wetland health.

In 2000     Support wetlands and stream corridor restoration and management and assessment/monitoring of overall
            wetland health.

In 1999     EPAprovidedfundingtorestorewetlandsandrivercorridorsin46watershedsthatmetspecific"Five Star
            Project" criteria relating to diverse community partnerships (for a cumulative total of 57 watersheds).

Performance Measures:                               FY 1999       FY2000        FY2001
                                                   Actuals        Estimate        Request

Watershed-based wetland restoration projects to which
EPA has provided financial support (other than 5-Star
Projects) and/or has contributed significant technical


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assistance (cumulative).
                65
                99
            Projects
Watershed-/community-based wetlands/river corridor
restoration projects funded by EPA's
Five Star Program (cumulative).

States/tribes develop, wetlands assess./monitoriiig tools
& making significant progress towards est formal
programs to assess & monitor overall wetland cond.,
improve., deterior., & restor. {inc.).
57
57
107
                4
Projects
                            States/tribes
Baseline:    As of September 1998, EPA cooperated on and supported 11 wetland and river corridor projects through
            the Five Star Program.  Going into FY99, 11 states/tribes had met the criteria for establishing formal
            assessment/monitoring programs.

Research

Scientific Rationale for Surface Water Criteria

In 2001     Develop the framework for diagnosing adverse chemical pollutants in surface waters.

In 2000     Develop the scientific rationale for numerical criteria for surface waters.

In 2000     Develop a conceptual framework for the diagnosis and assessment of water quality impairment in U.S.
            watersheds.

In 2000     Identify the primary life support functions of surface waters that contribute to the management of
            sustainability of watersheds.

In 1999     Completed research strategy for integrating economic assessment with ecological risk assessment of
            aquatic stressors. Produced three publications on knowledge based approaches to watershed assessments,
            and a fourth on ecosystem classification and mapping.

In 1999     Completed reports on the requirements of submerged  vegetation in coastal environments,  and on
            predicting metal toxicity in sediments. In addition, developed a research strategy on the scientific gaps
            in the areas of developing and implementing biocriteria.
Performance Measures:
FY1999
Actuals
FY2000
Estimate
FY 2001
Request
Report on the requirements of submerged aquatic vegetation in coastal environments.
Develop and provide a research strategy for integrating
economic assessment with ecological risk assessment
of multiple aquatic stressors applied at two locations.

Complete Big Darby Watershed Risk Assessment

Develop a research strategy for development of numerical
criteria for surface waters.
                09/30/2000
                                            assessment
                            requirements
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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.

Research strategy document to determine the impact of
landscape changes on wetland structure and function.

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

Decision-support tools and guidance for
watershed scale assessments; report on risk
characterization for watersheds.

Report on Sediment Toxicity.
                         guidance doc
                         assessment
1 strategy
                         compendium
              09/30/01
               1
report
Baseline:   Development of diagnostic tools and methods enable water resource managers to identify
           critical stressors to aquatic ecosystems and focus restoration and watershed management
           decisions.  Toxicity identification evaluation (TIE) methods currently exist for whole
           chemical effluents. The science is  maturing regarding the development of TIEs for
           sediments.  In 2001 the goal of this research will be to merge the whole effluent and
           sediment TIE methods into a consistent framework that can be used to identify ecologically
           important thresholds for use in watershed management.

Coordination with Other Agencies

        Involvement  of many federal agencies is critical to the success of efforts to protect and
restore watersheds not  meeting clean water, natural  resource and public health  goals.  These
successes will depend largely on the direct involvement of many federal, state, tribal and local
governments who manage the multitude of programs necessary to address water quality issues on
a watershed basis. Federal agency involvementwill includeUSDA (NaturalResources 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 Administration's goal  of achieving a net
increase of 100,000 acres of wetlands per year by 2005, increasing wetlands functions and values,
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and implementing a fair and flexible approach to wetlands regulations. Working closely with federal
partners, including the U.S. Army Corps of Engineers (ACE), an interagency group on wetlands will
issue a final plan for developing a single, improved wetlands status and trends report.

      Implementing successful comprehensive management plans for the estuaries hi the National
Estuary Program depends on the cooperation, involvement, and commitment of federal and state
agency partners that have some role in protecting and/or managing those estuaries.  Other agencies
routinely involved include the Corps of Engineers, NOAA, the Fish and Wildlife Service, state
departments of environmental protection or natural resources, and governors' offices.

      Federal agencies, Gulf states, non-governmental organizations, and private citizens serve as
members of the Gulf of Mexico Program's Federal Advisory Committee Act (F AC A)-chartered Gulf
of Mexico Policy  Review Board, subcommittees,  and  workgroups to  provide advice and
recommendations for development of performance goals and measuresfor protection and restoration
of the Gulf of Mexico,  Federal partners include: EPA, USD A  (Natural Resources Conservation
Service, Cooperative State Research, Education, and Extension Service, the Department Of Defense
(Corps of Engineers, Department of the Navy, Department of the Air Force), the Department of the
Interior  (USGS, Fish and Wildlife Service, National Park  Service), NOAA, the Food and Drug
Administration, and the Department of Transportation. Gulf State partners include: Gulf State
environmental agencies, natural resource agencies, departments of health and agriculture, marine
fisheries commissions, and port authorities.  Non-government partners include: American Farm
Bureau- Gulf of Mexico Committee, Gulf of Mexico Business Coalition, Gulf Restoration Network,
and 5 citizens from each Gulf State appointed by the governors.

      The Chesapeake Bay Program is a partnership between Maryland, Virginia, Pennsylvania,
the District of Columbia, the Chesapeake Bay Commission  (a tri-state legislative body), and EPA,
which represents the federal government. The Bay Program was formed in 1983, and operates in
a consensus fashion among the states, EPA and other federal agencies. The Bay Program has 9
subcommittees which focus on specific issue areas (e.g., toxics, nutrients,communications,etc.), and
all of the state jurisdictions and EPA are represented on all of these subcommittees, which generally
meet every six weeks.

      The Chesapeake Bay Program also has a Federal Agencies Committee, which was formed
in 1984 and has met regularly ever since. There are currently over 20 different federal agencies
actively involved with the Bay Program through the Federal Agencies Committee. The federal
agencies have operated over the past few years to implement the 1994 Agreement of Federal
Agencies on  Ecosystem Management in the Chesapeake Bay, which set specific  goals and
commitments for federally-owned lands and activities. In November 1998, EPA and over 20 other
federal agencies signed the new Federal Agencies Chesapeake Ecosystem Unified Plan. The Unified
Plan contains 50 new commitments which implement the President's Clean Water Action Plan in
the Chesapeake Region.
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       Research

       The National Research Council has recommended that EPA and the U.S. Army Corps of
Engineers (USAGE) develop joint research projects concerning contaminated sediments. EPA and
the USAGE have already initiated actions to begin formulating compatible and interactive programs
to respond to these recommendations.  EPA and USAGE have initiated three projects beginning in
1999 for the investigation of capping and treated sediments utilization.  In addition, pilot-scale
studies of land treatment conducted under Goal 2 have led to the start of a cooperative project with
USAGE for land treatment of sediments in the Milwaukee Harbor. USAGE is an active participant
in EPA's Contaminated Aquatic Sediments Remedial Guidance Workgroup and Remediation
Technology Development Forum's sediments action team. EPA has also 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 going through the review process.  As part of the
implementation of this strategy, EPA is  coordinating its research  with the Biological Research
Division of the USGS.

       The issue of eutrophication, hypoxia, and harmful algal blooms (HABs) is a priority with the
Committee on Environment and Natural Resources (CENR). An interagency research strategy for
pfiesteria and other harmful algal species was developed in 1998, and EPA is now working to
implement that strategy. EPA is working closing with NOAA on the issue of nutrients and risks
posed by HABs.  This CENR committee  is also coordinating the research  efforts among federal
agencies to assess the impacts of nutrients and hypoxia in the Gulf of Mexico.

Statutory Authorities  •

Clean Water Act (CWA)
Safe Drinking Water Act (SDWA)
Marine Protection, Research and Sanctuaries Act (MPRSA)
Ocean Dumping Ban Act of 1988
Shore Protection Act of 1988
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)


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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)
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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

                               Clean and Safe Water


Objective # 3:  Reduce Loadings and Air Deposition

      By 2005, pollutant discharges from key point sources and nonpoint source runoff, will be
reduced by at least 20% from 1992 levels. Air deposition of key pollutants impacting water bodies
will be reduced.
                                Resource Summary
                                (Dollars in thousands)

Reduce Loadings and Air Deposition
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
-

Rural Water Technical Assistance
Effluent Guidelines (CWAP)
NPDES Program (CWAP)
State Nonpoint Source Grants (CWAP)
FY 1999 FY 2000
Enacted Enacted
$1,981,357.1 $1,920,701.7
$124,463.6 $138,646.0
$11,272.5 $7,861.8
$1,845,621.0 $1,774,193.9
863.1 879.0
Key Programs
(Dollars in thousands)
FY1999
Enacted
$3,095.0
$22,372.2
$30,862.6
$200,000.0
National Nonpoint Source Program Implementation (CWAP) $16,033.7
FY2001
Request
$1,216,772.6
$132,374.3
$6,398.3
$1,078,000.0
854.4

FY2000
Enacted
$3,586.1
$21,116.9
$36,274.9
$200,000.0
$15,401.1
FY 2001 Req. v.
FY 2000 Ena.
($703,929.1)
($6,271.7)
($1,463.5)
($696,193.9)
(24.6)

FY 2001
Request
$456.0
$23,610.1
$41,592.0
$250,000.0
$16,944.3
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Water Infrastructure:Clean Water State Revolving Fund (CW-
SRF)
$1,350,000,0      $1,345,4213     $800,000,0
Water Infrastructure: Alaska Native Villages

Water Inftastructure:Boston Harbor

Water Infrastraeture:Bristol County

Water Infrastracture:New Orleans

Watershed Research

Project XL

Rent, Utilities and Security

Administrative Services


Regional Management
  $30,000.0

  $50,000.0

   $2,610,0

   $6,525.0

  $10,297.5

     $211.3

       $0.0

     $541.1


       $0.0
$30,000.0
$0.0
$2,000.0
$3,800.0
$7,481.8
$220.5
$12,038.3
$2,327.0
$15,000.0
$0.0
$3,000,0
$10,000.0
$6,398.3
$232.7
$13,415.7
$2,482.1
$438.2
$413.2
FY 2001 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 andnonpoint sources. Under the National
Pollutant Discharge Elimination System (NPDES) program (which includes NPDES permits, urban
wet weatherissues, the pretreatment program for non-domestic wastewater discharges into municipal
sanitary sewers, andbiosolids management controls), specific limits are set for pollutants discharged
from point sources into waters of the United States. These limits are designed to ensure that national
technology  based standards  (effluent limitations  and guidelines) and  water  quality  based
requirements are adequate to meet water quality standards throughout the country.  Financial
assistance to states, interstate organizations, and tribes for many of these programs is provided
through the Section 106 grant program included under Objective 2 of the Clean and Safe Water
Goal: Conserve and Enhance Nation's Waters. EPA also provides financial assistance through the
Clean Water State Revolving Fund (CWSRF) program to states for the construction of wastewater
treatment facilities and implementation of other water quality management projects. The program
is also fostering the use of CWSRF loans to finance the highest priority traditional and nontradrtional
projects on a watershed or statewide basis. This includes the Agency's legislative proposal to allow
states to reserve up to an amount equal to  19% of their CWSRF capitalization grants  to provide
grants of no more than 60% of the costs of implementing nonpoint source and estuary management
projects. Additionally, the program provides grants for Alaska Native Villages, Indian Tribes, and
communities with special needs.
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       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 a permit have one that is effective and includes
all conditions needed to ensure water quality protection.  The Agency will continue its efforts to
streamline the implementation of the NPDES and pretreatment programs.  In addition, the Agency
will continue to reorient both the NPDES and CWSRF programs to a watershed focus.

       The Agency will propose effluent limitations guidelines for three major industrial sectors:
iron and steel, metal products  and machinery, and feedlots, which includes the Beef and Dairy Rule
and the Pork and Poultry Rule. EPA will promulgate final effluent guidelines for the oil extracting
industry and some sectors of the pulp and paper industry. These guidelines will then be incorporated
into NPDES permits as they are issued or reissued by the NPDES permitting authority. The Agency
will also continue to work on an effluent limitations guideline as part of a larger cluster rule
addressing air, water, and waste impacts  in urban areas of an industrial category as  yet to  be
determined.

       Over the next five to ten years, the Agency will place much greater emphasis on controlling
wet weather sources of pollution from combined sewer overflows (CSOs), sanitary sewer overflows
and storm water and will focus greater  attention on the  impacts of contaminated sediment.
Nationally, urban runoff is a leading cause of impairment in estuaries, lakes, and rivers surveyed by
states.   This runoff has  significant negative economic as  well as environmental impacts.
Implementing cost-effective wet weather programs will pose new challenges for EPA, states, cities,
and industry  — both technologically and financially. However, by having these programs in place,
we will be able to implement basic wet weather pollution controls for all major point sources.
During 2001, the Agency expects to continue implementing the regulations to control storm water
from municipalities and construction sources, to have approximately 900 CSO communities covered
by NPDES permits and implementing  controls based on EPA's  CSO policy, and to propose
modifications   to  the NPDES regulations to clarify capacity,  management, operation and
maintenance, and reporting requirements on unauthorized sanitary sewer overflows discharging into
U.S. waters..

       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.

       In support of the Clean Water Action Plan, EPA will place emphasis on updating regulatory
programs related to animal waste management in order to reduce environmental and public health
problems caused by animal feeding operations (AFOs). Agricultural practices in the United States
were estimated to contribute to the impairment of over 25 percent of the Nation's surveyed rivers


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and streams; 19 percent of the Nation's surveyed lakes, ponds, and reservoirs; and 10 percent of the
Nation's surveyed estuaries in the 1996 National Water Quality Inventory. Intensive animal
operations alone, not including the potential runoff from farms using manure as fertilizer, are
estimated to adversely impact 20 percent of waters impaired by agricultural practices. Twenty-two
states reported this detailed information.  The Agency is implementing a multi-year strategy to
address how it will minimize environmental and public health impacts from AFOs over the next
decade and beyond. Permits for all concentrated animal feeding operations (CAFOs) greater than
1,000 animal units are expected to be issued in 2000, and all remaining CAFO permits are expected
to be issued by the end of 2002. These permits are issued by EPA and the states. In addition, EPA
will work with states to assist all AFO facilities in developing comprehensive nutrient management
plans by working with the United States Department of Agriculture to develop guidance.

       Also as part of the Clean Water  Action Plan, EPA will work with other federal land
managers, state agencies, tribes, and private parties to accelerate the cleanup of watersheds affected
by mines. In some areas, streams and ground water have been seriously affected by abandoned
mines, in particular, abandoned coal mines in the eastern United States. Cooperation between EPA
and its partners will help remediate these problems.  In addition, EPA will continue to implement
its Hardrock Mining Framework (finalized on September 12, 1997), by ensuring that permits are
issued for newly proposed hardrock mines.

       In 1998, the Office of Inspector General identified the NPDES permit backlog as a candidate
for material weakness under FMFIA. The backlog hi EPA-issued permits had  tripled over the past
10 years; and the backlog in state-issued permits had doubled over this time. The goals and targets
cited for NPDES are contingent upon the timely issuance of quality permits.  To ensure that this
occurs, a multi-year backlog reduction plan has been developed and is being implemented. The plan
calls for better defining the backlog, streamlining the program, and providing technical support and
training to Regions and states. In 2001, EPA anticipates that the backlog of current permits for
major point sources will be 11%, which is an improvement from 28% in May 1999.

       EPA provides financial assistance through the CWSRF program for the construction of
wastewater treatment facilities and implementation of nonpoint source and estuarine management
plans.  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. Federal capitalization
funds are a critical component of financing for point and  nonpoint source  programs aimed at
reducing pollutant discharge levels. In 2001, the Agency is requesting $800,000,000 for the Clean
Water State Revolving Fund. Combined with the Drinking Water State Revolving Fund request of
$825 million and outyear capitalization, this level enables both SRFs to meet the Administration's
long-term goal of providing $2.5 billion per year in average assistance to communities. The CWSRF
is expected to provide about $2 billion of this amount. The operation of state programs  are critical


                                         11-66

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to the success of the national SRF programs. The Agency expects that 35 state CWSRF programs
will meet or exceed threshold measures for the appropriate pace of program implementation
including loan issuance, construction progress, and loan repayments.

       The CWSRF investment keeps EPA on track with our commitment to meet the goal for the
CWSRF to provide an average of $2.0 billion in annual financial assistance. Indeed, the President's
Budget calls for cumulative additional capitalization of $3.2 billion in fiscal years 2002-2005, which
will enable the program to exceed the Administration commitment. Over $17 billion has already
been provided to capitalize the CWSRF, more than twice the original Clean Water Act authorized
level of $8.4 billion. Total SRF funds available for loans since 1987, reflecting loan repayments,
state match dollars, and other sources of funding, are approximately $30 billion, of which $26 billion
having been provided to communities as financial assistance ($4.2 billion was available for loans
as of June 1999).

       To further support the objectives of the Clean Water Action Plan, the Agency is requesting
to increase the flexibility of the states in operating their Clean Water State Revolving Funds, and
provide them with the tools they need to address their most significant water quality problems, the
Agency proposes to allow states to reserve up to an amount equal to 19% of their CWSRF
capitalization grants to provide grants of no more than 60% of the costs of implementing nonpoint
source and estuary management projects.  Projects receiving grant assistance  would be required,
to the maximum extent practicable, to rank highest on the state's list used to prioritize projects
eligible for assistance.  States  would be permitted to make these grants using either a portion of
their capitalization grant itself, or using other funds in their state revolving fund (e.g, state match,
repayments, bond proceeds).  Grants may also be combined with loans for eligible projects for
communities which  might otherwise find loans unaffordable.

        To increase public health and water quality in Indian Country, the Agency proposes to
increase for Fiscal Year 2001 and beyond the percentage of funds appropriated for the Clean Water
State Revolving Fund that is reserved for wastewater grants to tribes. The change from 0.5 percent
to 1.5 percent will substantially increase the amount of funds available to tribes for wastewater
treatment project grants.  Over 70,000 homes  in Indian country have inadequate or nonexistent
wastewater treatment service.  EPA and the Indian Health Service estimate tribal wastewater
infrastructure needs  exceed $650 million.

       In addition to the CWSRF program, the water program is responsible for managing Water
Quality Cooperative Agreements and the Section 106 grants which directly support state and tribal
efforts to reduce point source loadings.  The Agency continues to manage the construction grants
close-out process and expects by the end of 2000 to have achieved success hi closing out all but 123
pre-1992  projects totaling $2.6 billion.   The  propam  also  provides  grant  assistance for
environmental protection for Alaska Native Villages and Indian Tribes, and the propam manages
grant assistance for wastewater treatment projects as requested by the President and as identified by
Congress.
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       EPA does not regulate septic systems. However, properly managed septic systems are an
important part of the nation's wastewater treatment infrastructure, but poorly-sited and maintained
systems threaten the health and safety of two million people yearly by contaminating wells and
surface water drinking water supplies, leaking septage into yards where children play, backing up
into homes, closing beaches, contaminating shellfish, and damaging aquatic life and the supporting
ecosystem.  The water program is addressing these challenges through publication of voluntary
management standards that municipalities may implement and guidance on impediments, and
through substantial outreach to state and municipal authorities.

       According to states, polhitionfrom nonpoint sources remains the single largest cause of water
pollution, with agriculture identified as a leading cause of impairment in 25% of the river miles
surveyed. In order to meet this objective and restore and maintain water quality, significant loading
reductions from nonpoint sources (NFS) must be achieved. Because EPA has limited authority to
regulate NPS under the Clean Water Act, state NPS programs are critical to our overall success. The
EPA will continue to encourage states to provide CWSRF funding for high priority projects that
address nonpoint source and estuary projects. States will need to make revisions to their existing
nonpoint source programs and fully  and expeditiously implement all of the nine key program
elements agreed to with EPA. Starting in 2000, EPA will award NPS monies exceeding the first
$ 100,000,000 of the $250,000,000 total request only to those states and tribes that have incorporated
all nine key elements into an approved section 319 Nonpoint Source Management Plan. In addition,
coastal states will need to complete development of their coastal nonpointpollution control programs
that were conditionally approved by EPA/National Oceanographic and Atmospheric Administration
(NOAA) in 1998 and to begin implementation of these 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 approaches.  These state
programs are the primary means for implementing nonpoint source Total Maximum Daily Load
(TMDL) allocations and for achieving water quality standards.  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. As the program moves forward, 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.
State implementation plans for nonpoint sources will be required to provide reasonable assurances
that load allocations within an approved TMDL are met for waters impaired solely or primarily from
nonpoint sources. Lastly, EPA will work in FY 2001 to reduce pollution from the estimated 11
million U.S. septic systems that represent a real risk to water quality and public health.

       Tribal participation in the Nonpoint Source Control Program under C WA section 319(h) has
been limited by section 518(f) which authorizes EPA to grant up to one-third of one percent of
national 319(h) program funds for tribes. Tribes applying for and receiving section 319(h) grants
have steadily increased from two in 1991 to 11 in 1999. Twenty-two tribes have met the eligibility


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requirements to receive section 319(h) program grants. This number is expected to increase annually
as more of the 554 federally recognized tribes become eligible to participate in the 319(h) program
(over 20 tribes are working to become program eligible).  Due to this increasing demand on the
severely limited pool of tribal grant funds, EPA again proposes to permanently eliminate the current
statutory ceiling on the percentage of Section 319 grant funds that may be awarded to tribes/tribal
consortia for nonpoint source activities.

       EPA (in  coastal areas working  with NOAA) will  increase  efforts to promote the
establishment of state authorities needed to assure the implementation of nonpoint source controls
to achieve water quality standards, with particular emphasis on nutrients and other NPS pollutants
of concern in specific priority watersheds. EPA will continue to work with states on upgrading their
polluted runoff programs to better ensure NPS implementation.  EPA (in concert with NOAA) will
work with states to ensure that all  states have developed fully-approvable programs to reduce
polluted runoff in coastal areas.

       As part of the Clean Water Action Plan, CWA Section 319 grants will be targeted to support
implementation of priority NPS and watershed protection activities called for in state Watershed
Restoration Action Strategies, including those implementation actions necessary to support NPS
management and controls specified in TMDLs developed for NPS-impaired priority waters.  In
recognition of the increasing NPS management needs reflected in TMDLs, Section 319 grants will
be increased by $50 million to help states implement specific NPS controls including reductions
identified in TMDLs, and to provide additional funds, at state discretion, for TMDL development
(limited to 20% of the total grant amount by guidance)..

       Additional Clean Water Action Plan support through the Clean Water State Revolving Fund
program provides financial assistance for implementation of watershed restoration projects; and
agency technical assistance helps communities and rural areas plan and invest in decentralized
wastewater treatment facilities, so that they are properly installed and maintained. This Clean Water
Action Plan "Key Action"  aims to keep malfunctioning systems from producing nonpoint source
pollution.

       The Clean Water Action Plan furthers the efforts of the Federal government in assessing the
risks associated with and reducing atmospheric deposition of pollutants, particularly nitrogen, 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 to reduce air deposition.  As a
result,  water quality protection has taken a prominent place 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.
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       Research

       Effective watershed management strategies and guidance for Wet Weather Flow (WWF)
dischargers is one of the key priority areas remaining to assure clean water and safe drinking water.
Pollution from non-point sources during and after rainfalls is now the single largest cause 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 flowrates exacerbate
ecological upsets and cause significant physical damage to streams, EPA will continue to develop
and validate effective watershed management strategiesfor controlling WWFs, especially when they
are high volume and toxic.  This research will also develop and provide effective beach evaluation
tools necessary to make timely and informed decisions on beach advisories and closures.

       Due to the prohibitively high cost of employing currently available technology, solutions to
WWF control are difficult to implement Research will emphasize pollution prevention strategies,
primarily through the investigation of best management practices (BMPs), to avoid or minimize the
generation of WWF contaminations,  EPA will also conduct research to develop decision support
tools to evaluate and verify improved watershed management strategies. Watershed management
research will investigate techniques to reuse and reclaim stormwater for beneficial purposes, defining
the conditions when secondary uses are both desirable and economically possible. This program is
designed  to promote "community-based" decisions by developing decision support tools and
alternative WWF control technologies for use by local decision makers involved in community-
based watershed management and pollution control. In 2001, EPA will develop decision-support
statistical tools for the watershed assessment guidance in the Watershed Restoration Strategy.

       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 which cause discharges from both point sources (e.g.,
sanitary sewer overflows, combined sewer overflows, and stormwater) and non-point sources (e.g.,
animal feedlots and malfunctioning septic tanks).  In  2001, the beaches research program will
continue to develop and provide the tools necessary to make timely and informed decisions on beach
advisories and closures, develop models that can be used to predict when beach closures or warnings
are needed, and develop faster, cheaper test methods and indicators for detection and measurement
of human pathogenic microbes.  This research will work to develop better and faster analytical
methods  for detecting risk before exposure takes place.  Better information will also help local
communities to adopt the appropriate control technologies to mitigate the  problem. These efforts
will complement work being done under Objective 1 of the Clean and Safe Water Goal.

       This research program is also supported through the Agency's Postdoctoral Initiative. The
FY 2001  request is the third year of the effort to enhance our intramural research program by
supporting 0.5 additional postdoctoral positions under this objective. This enhancement continues
to build upon the positive response by the academic community to EPA's announcement of 50
postdoctoral positions for 1999.


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FY 2001 Change from FY 2000 Enacted

EPM
•      (+$ 1,225,000) To support a mining initiative aimed at characterizingand remediating surface
       and ground water contamination resulting from mineral extraction.

•      (+$ 1,405,500)Continued support for C AFO activities related to strategy implementation and
       permit issuance.

•      (-$450,000) Reductions have been made against the 2000 level due to anticipated progress
       made in  meeting the court-ordered deadline  for  developing  a  cooling  water intake
       regulation.,

•      (+$500,000) This increase will support a pilot permit project to study effectiveness of permit
       and non-permit approaches to implementing best  management practices (BMPs) for
       silviculture.

•      (+$272,3 00) This increase will provide continued support to the Agency's efforts to develop
       voluntary management standards for on-site wastewater treatment systems.

*      (+$1,604,600)  This  increase will allow the Agency to complete effluent limitations
       guidelines and standards for the remaining sectors of the pulp and paper industry and develop
       analytical methods for specific chemical pollutants. The Agency will also provide permitting
       assistance for high-profile industrial permits,

•      (+$800,000) Will provide increased technical support for development and dissemination of
       improved practices and techniques for controlling nonpoint source pollution.

•      (-4.2 total workyears) Reflects  a workyear decrease in accordance with fiscal year 2000
       Appropriations language.

•      (+$5,933,300)  Reflects payroll cost of living increases and enrichment and increased
       working capital fund requirements.

»      The 2001 Request is $ 18,733,300 below the 2000 Enacted budget level due to Congressional
       earmarks received during the appropriations process but not part of the 2001 President's
       Request
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S&T
       The 2001 Request is $380,000 below the 2000 Enacted budget level due to Congressional
       earmarks received during the appropriations process but not part of the 2001 President's
       Request.
STAG
       (+$1,000,000) The increase supports the Administration's commitment to addressing the
       special wastewater requirements of Bristol County, Massachusetts.

       (-$ 15,000,000) from Alaska Native villages, which is consistent with the FY 2000 request.
       The Agency believes this to be the level of funding which can be most effectively utilized
       by the State of Alaska.

       (+$6,200,000) for the City of New Orleans to support planning, design, construction and
       other activities related to unique problems in the city's sewer system.

       (-$545,421,300) from the Clean Water SRF.  The request is consistent with achieving the
       Administration's goals for the CWSRF to revolve  at $2.0 billion per year after Federal
       capitalization grants end.   To date, more than $17  billion has  been appropriated  in
       capitalization grants. This amount, combined with state matching and  leveraging, has
       allowed the SRFs to provide more than $26 billion in financial assistance to date.

       (+$50,000,000) This increase  of the CWA Section 319 nonpoint source  grants program
       supports increasing state nonpoint source implementationneeds reflected hi state-established
       TMDLs and state Watershed Restoration Action Strategies.

       The  2001  Request is  $192,972,600  below the  2000 Enacted  budget level due  to
       Congressional earmarks received during the appropriations process but not part of the 2001
       President's Request.
       Research
S&T
       (-$1,389,300) The 2001 request is $1,389,300 below the 2000 Enacted budget level due to
       Congressional earmarks received during the appropriations process that are not part of the
       2001 President's Request.

       (+$255,900, -6.0 workyears)  The R&D program, including infrastructure support costs, is
       spread across eight of the ten goals in the Agency's GPRA/budget structure. Based on a
       review of actual infrastructure utilization under each goal (i.e., operating expenses and
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        working capital fund), adjustments are being made to more accurately reflect expectations
        for use in FY 2001.
Annual Performance Goals and Performance Measures
Biosolids and Beneficial Reuse

In 2001
In 2000

In 1999
Increase the beneficial use of the approximately 7 million dry weight tons of biosolids
produced each year.

54% of biosolids are beneficially reused.

50% of biosolids are beneficially reused.
Performance Measures:
POTWs beneficially reusing all or a part of their
biosolids and, where data exists, the percent
of biosolids generated that are beneficially reused.
                                       FY 1999
                                       Actuals
                                       50
FY2000
Estimate
54
FY2001
Request
55
% biosolids
Baseline:    An estimated 50% of biosolids are being beneficially reused.

Reducing Industrial Pollutant Discharge

In 2001      Industrial discharges of pollutants to the nation's waters will be significantly reduced through
            implementation of effluent guidelines.

In 2000      Industrial discharges of pollutants to the nation's waters will be significantly reduced through
            implementation of effluent guidelines.
Performance Measures:
                                       FY1999
                                       Actuals
FY 2000
Estimate
Reduction in loadings for toxic pollutants for facilities
subject to effluent guidelines promulgated between 1992
& 1999, as compared to 1992 levels as
predicted by model projections.

Reduction in loadings for conventional pollutants for
facilities subject to effluent guidelines promulgated
between 1992 & 1999, as compared to 1992 levels as
predicted by model projections.

Reduction in loadings for non-conventional pollutants
for facilities subject to effluent guidelines promulgated
between 1992 and 1999, as compared to 1992 levels as
predicted by model projections.
                                                      4 million
FY2001
Request
                4 million    Pounds
                                                      385 million
                386 million Pounds
                                                      260 million
                370 million Pounds
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Baseline:   Flow data is not available for some point sources in PCS. EPA will model loadings from permits
           issued based on effluent guidelines promulgated between 1992 and 1999,

NPDES Permit Requirements

In 2001     Current NPDES permits reduce or eliminate discharges into the nation's waters of (1) inadequately
           treated discharges from municipal and industrial facilities; and (2) pollutants from urban storm
           water, CSOs, and CAFOs.

In 2000     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, combined sewer overflows (CSOs), and concentrated animal feeding operations (CAFOs).

In 1999     Quantified the number of AFOs that were permitted by EPA and states and the extent the permits
           included manure management requirements.

In 1999     It was determined that developing a national inventory of AFOs and estimates of pollutant loadings
           was not feasible since there are as many as 450,000 AFOs and rapid changes are occurring in a
           number of facilities.

In 1999     For all industrial activities operating in the state, 92% of states and territories and for construction
           sites over 5 acres, 88% of states and territories have current permits.

In 1999     An assessment of necessary elements of a comprehensive general permit has been developed to aid
           Regions and States in issuing permits to concentrated animal feeding operations.

In 1999     830 CSO communities (92%) are covered by permits or other enforceable mechanisms consistent
           with the  1994 CSO policy. (Note: this result may reflect overcounting and implementation of only
           portions of the CSO Policy.)

In 1999     71% of major point sources are covered by current NPDES permits.

In 1999     513 communities implemented requirements in Stormwater Phase I permits (MS4s) and / or CSO
           Long Term Control Plans (LTCPs) that are anticipated to contribute to improvements in their local
           watersheds.

Performance Measures:                               FY 1999        FY2000       FY2001
                                                   Actuals         Estimate       Request

Major point sources are covered by current permits.      71%           84%           89%        Point Sources

States with current permits for construction sites
over 5 acres.                                        88              100             100        % States

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.                                         72              100        % States

Comprehensive methodology developed for documenting
pollutants removed through increased SSO, CSO and
storm water treatment, and increased wastewater


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treatment to secondary or better standards.
                                                                                  Methodology
Permittees (among the approximately 900 CSO
communities nationwide) that are covered by NPDES
permits or other enforceable mechanisms
consistent with the 1994 CSO policy.                  92

Minor point sources are covered by current permits.      62%

States with current permits for all industrial
activities operating in the state.                        92

Completion of AFO documents                        1

Inventory of Animal Feeding Operations/
estimate loadings                                    0

Quantity of AFOs which are permitted                  1

Communities that will have local watersheds improved
by controls on CSOs and stormwater                   513

Facilities w. a discharge requiring an indiv. permit
that a) are covered by a curr. indiv. NPDES perm.;
b) have expir. perm.; c) have applied but not been
issued a perm.; & d) have perm, under appeal
                                                       100

                                                       60%


                                                       100
                100

                66%


                100
            % permittees

            Point Sources


            % States

            Document


            Inventory

            List


            Communities
                                                       no target
Baseline:    As of May 1999,72% of major point sources and 54% of minor point sources were covered by a
            current NPDES permit.  At the end of FY99, 53 of 57 states/territories had current storm water
            permits for all industrial activities, and 50 of 57 had current permits for construction sites over 5
            acres. In June 1999,74% of approximately 900 CSO communities were 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 2001
In 2000
Reduce point source loadings by expediting completion of projects funded under Clean Water Act
Title II (construction grants) and special project STAG grants.

Reduce point source loadings by expediting completion of projects funded under Clean Water Act
Title II (construction grants) projects and special project State and Tribal Assistance Grants (STAG).
In 1999     340 construction grants projects remain to be closed out.
Performance Measures:
Construction grants projects awarded after FY91
closed out within 7 years of grant award.

Construction grants projects awarded before
                                       FY1999
                                       Actuals
FY 2000
Estimate
                                                       90
FY 2001
Request
                90
            % grants
                                                   H-75

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FY92 remaining to be closed out.                      260             123             45          Projects

Construction grants projects (both those awarded
before FY92 and after FY91)
remaining to be closed out.                            340                                         Projects

Special project STAG grants closed out
within 7 years of grant award.                                                          90          % Grants

Baseline:    As of September 1998, 439 construction grants projects remained to be closed out, according to
            biannual reports from the Regions. As of September 1998, three special project STAG grants had
            been closed out according to biannual reports submitted by the EPA Regions to EPA Headquarters.
            Special project STAG grants were first established in 1994.

Effluent Guidelines

In 2001      Take final action on 2 and propose 2 effluent guidelines limitations for industrial categories that
            contribute significantly to pollution of surface waters.

In 2000     Take final action on 4 and propose 1 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
                                                    Actuals         Estimate        Request

Effluent guidelines proposed or promulgated            2/1             1/4             2,1          Rules

Baseline:    Baseline is not applicable since these are new effluent guidelines.

Pretreatment Program Audits

In 2001      Prevent pass through of pollutants to sludge and the nation's waters and protect POTW operations
            by auditing all approved pretreatment programs over a 5-year period to ensure that 1500 effective
            pretreatment programs control over 30,000 significant industrial dischargers.

In 2000     Prevent pass through of pollutants to sludge and the nation's waters and protect POTW operations
            by auditing all approved pretreatment programs over a five year period to ensure that 1,500 effective
            pretreatment programs control over 30,000 significant industrial dischargers.

In 1999     20.5% of approved pretreatment programs were audited in FY99 and approximately 80% of
            pretreatment programs were audited over the previous 5 years.

Performance Measures:                               FY 1999        FY2000        FY2001
                                                    Actuals         Estimate        Request

Approved pretreatment programs
audited in the last 5 years.                             approx. 80                                   % programs

Approved pretreatment programs audited in the reporting


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year. Of those, the number of audits finding significant
shortcomings and the number of local programs
upgraded to achieve compliance.                                      100% over 5 yrs  100%over5yrs
            Programs

Baseline:    At the end of FY99, 1,360 audits had been conducted since October 1, 1994.  There are 1,369
            pretreatment programs; however, some of the programs were audited more than once,

Clean Water State Revolving Fund: Annual Assistance

In 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.

hi 2000      Effectively implement the Clean Water State Revolving Fund (CW SRF) program to ensure annual
            assistance of approximately $2 billion.

In 1999      41 states and Puerto Rico conducted separate annual audits of their SRFs.

In 1999      30 states met "pace of the program" measures for loan issuance and pace of construction.

Performance Measures:                               FY1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

States that are using integrated planning and priority
systems to make CW SRF
funding decisions (cumulative).                                                      17          States

States that meet or exceed "pace of the program"
measures for loan issuance and construction
(cumulative),30                                     30             35              States

States and Puerto Rico that conduct separate
annual audits of their CW SRFs                       41             42              45          States

EPA will report to Congress on the pace of the Clean
Water State Revolving Fund Program.                                 1               1            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  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.

Improving Wastewater Sanitation in Indian Country

In 2001      Increase protection of human health in Indian Country by providing adequate wastewater sanitation
            to more of the 71,028 homes in Indian Country with inadequate wastewater sanitation systems.

In 2000      Increase protection of human health in Indian Country by providing adequate wastewater sanitation
            to the 71,028 homes in Indian Country with inadequate wastewater sanitation  systems.
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Performance Measures:
Homes in Indian Country whose residents are provided
with adequate wastewater sanitation systems though
funding from the CW SRF Tribal Set
Aside Program (cumulative).
                                       FY 1999
                                       Actuals
FY 2000
Estimate
FY2001
Request
                                                                                   % Homes
Baseline:    Annual reporting established in FY 1998 by EPA and the Indian Health Service shows 71,028 homes
            in Indian Country without adequate treatment.

Wastewater Treatment Facility Compliance

In2001
In 2000
Protect human health and avoid increasedpoint source loadings by helping the approximately 17,000
small U.S. wastewater treatment systems to maintain permitted performance levels.

Protect human health and avoid increasedpoint source loadings by helping the approximately 17,000
small U.S. wastewater treatment systems to maintain permitted performance levels.
Performance Measures:
                                       FY 1999
                                       Actuals
FY2000
Estimate
FY2001
Request
Wastewater treatment facilities maintaining permitted
performance levels through assistance under
Section 104(g) of the CWA.                                          699             744         Facilities

Baseline:    In 1998, 890 facilities were assisted to improve, maintain, or achieve compliance.

Wastewater Treatment

In 2001     500 projects funded by  the Clean Water SRF will initiate operations, including 300 projects
            providing secondary treatment, advanced treatment, CSO correction (treatment), and/or storm water
            treatment. Cumulatively, 6,200 SRF funded projects will have initiated operations since program
            inception.

In 2001     Reduce human health risks and nonpoint source loadings from the approximately 11 million failing
            septic systems that pollute drinking water supplies, playgrounds and beaches, back up into homes
            and damage shellfish and other aquatic life.

In 2000     Another two million people will receive the benefits of secondary treatment of wastewater, for a total
            of 181  million people.

In 1999     Another 3.4 million people received the benefits of secondary treatment of wastewater, for a total
            of 179 million.
Performance Measures:
States which adopt the Voluntary Management
Standards Program for On-site
Wastewater Treatment Systems.
                                       FY 1999
                                       Actuals
FY2000
Estimate
FY2001
Request
                                                                       10
                            States
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CW SRF projects that have
initiated operations (cumulative).                     5,200           5,700          6,200      SRF projects

Additional people who will receive the benefits
of secondary or better treatment of wastewaier          3.4             2                        M People

Baseline:    The Agency's National Information Management System shows 3,909 SRF projects initiated as of
           June 1998.

Reducing Nonpoint Source Pollution

In 2001     Reduce nonpoint source sediment and nutrient loads to rivers and streams.

In 2000     to support of the Clean Water Action Plan, 45 states upgrade their nonpoint source programs, to
           ensure that they are implementing dynamic and effective nonpoint source programs that are designed
           to achieve and maintain beneficial uses of water.

In 1999     In support of the Clean Water Action Plan, 11 additional states have upgraded their nonpoint source
           programs, to ensure that they are implementing dynamic and effective nonpoint source programs
           that are designed to achieve and maintain beneficial uses of water.

Performance Measures:                             FY 1999        FY2000        FY2001
                                                Actuals         Estimate        Request

AFOs for which Comprehensive Nutrient Management
Plans (CNMPs) are developed (cumulative).                                         5%        AFOs

Clean Water SRF loaned for projects
to prevent polluted runoff.                          6              6             10         %CWSRF

EPA approvals of state submitted upgraded nonpoint
source programs (incorporating the 9 key elements
outlined in national Nonpoint Source Program
and Grants Guidance for FY97 and Future Years).       11             45                       States

Baseline:    No CNMPs have yet been developed.  As of September 1998, 24 states were funding
           nonpoint and estuary projects with their SRFs.

Verification and Validation of Performance Measures

Goal2 Objectives

Performance Measure: Major Point sources are covered by current permits; Minor Point
Sources are covered by current permits

Performance Database: The Permits Compliance System (PCS) will be used to determine which
permits have not exceeded their expiration dates.

Data Source: Regions and States will enter data into PCS.
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QA/QC Procedures: HQ will review data submitted by States from State databases and ensure that
this data is used to update PCS.

Data Quality Review: OIG audits 8100076 (3/13/98) and 8100089 (3/31/98) discussed need for
current data in PCS.

Data Limitations: There are significant data gaps for minor facilities and discrepancies between
State databases and PCS.

New/Improved Data or Systems: EPA Headquarters is providing contractor assistance to improve
PCS data quality .By 2003, PCS is scheduled to be modernized to make it easier to use and to ensure
that it includes all needed data to manage NPDES programs.
Performance Measure: Clean Water State Revolving Fund (CWSRF) projects that have
initiated operations

Performance Database: National Clean Water State Revolving Fund Information Management
System

Data Source: Reporting by municipal and other facility operators. Entry by state regulatory agency
personnel and EPA Regional staff. Collection and reporting once yearly.

QA/QC Procedures:  Headquarters is responsible for collecting and compiling the data, and
querying Regions as needed Regions are responsible for collecting the data from their client states
and reporting the data to HQ once yearly.

Data Quality Review: EPA Headquarters and Regions annually reviewthe data submitted by states.

Data Limitations: None

New/Improved Data or Systems: This system was new as of 1996. It is updated on a continuous
basis, and database fields are changed or added as needed.
Performance Measure: Reduction in Loadings for toxic pollutants for facilities subject to effluent
guidelines promulgated between 1992 & 1999, as compared to 1992 levels as predicted by model
projections; Reduction in loadings for conventional pollutants for facilities subject to effluent
guidelines promulgated between 1992 & 1999, as compared to 1992 levels as predicted by model
projections; Reduction in loadings for non-conventional pollutants for facilities subject to effluent
guidelines promulgated between 1992 & 1999, as compared to 1992 levels as predicted by model
projections
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Performance Database: Permits Compliance System (PCS) will be used to determine which
permits are issued in FY2001; Loading reductions will be determined for the permits issued in '01
from Effluent Guidelines development data

Data Source:

QA/QC Procedures: Regions are responsible for determining which of the permits issued fall into
the appropriate industrial effluent guideline categories.; Headquarters will calculate the loadings for
the permits issued based on the Effluent Guidelines development data.

Data Quality Review: OIG audits 8100076 (3/13/98) and 8100089 (3/31/98) mentioned the need
for current data in PCS.

Data Limitations:  Flow data in PCS is not complete, so it must be supplemented with Effluent
Guidelines development data.

New/Improved Data or Systems: EPA Headquarters is providing contractor assistance to improve
PCS data quality. By 2003, PCS is scheduled to be modernized to make it easier to use and to
ensure that it includes needed data.
Coordination with Other Agencies

National Pollutant Discharge Elimination System Program (NPDES1

       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 on consultation for protection of endangered species and 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 Strategy of Animal Feeding Operations

       The Agency is working closely with the Department of Agriculture (USD A) to implement
the Unified National Strategy for Animal Feeding Operations finalized on March9,1999. This joint
strategy is among the key actions in the Clean Water Action Plan. The Strategy sets  forth a
framework of actions that USD A and EPA plan to take, under existing legal and regulatory authority,


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to minimize water quality and public health impacts from improperly managed animal wastes in a
manner designed to preserve and enhance the long-term sustainability of livestock production.

Clean Water State Revolving Fund fCWSRFl

       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 hi 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 Armv 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 hi construction oversight and administrative matters. 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 hi reducing sediment loadings through its continued implementation of the
Environmental  Quality  Incentives Program, the Conservation  Reserve  Program, and  the
Conservation Operations. USDA also plays a major role in reducing nutrient discharges through
these  same programs. EPA will  also work closely with the Forest Service and Bureau of Land


                                         11-82

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Management, whose  programs can contribute significantly to  reduced  pollutant loadings of
sediment, especially on the vast public lands that comprise 29% of all land in the United States.
EPA will work with these agencies, USGS, and the states to document improvements in land
management and water quality.

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 increase
cooperation with other federal agencies such as USGS to address atmospheric deposition problems.
       Research

       Research addressing 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. A portion of the WWF
research plan's projects are being conducted within EPA, with funding from Section  104(b)(3) of
the Clean  Water Act (CWA),  This plan  is also being used to coordinate relevant work being
conducted by others such as the Water Environment Research Foundation's Wet Weather Advisory
Panel, the ASCE Urban Water Resources Research Council, the U.S. Department of Agriculture, the
U.S. Centers  for Disease Control  (CDC), the Army Corps of Engineers (USAGE), the U.S.
Geological Survey (USGS), the Sanitary Sewer Overflow (SSO) Advisory Committee and Urban
WWF Subcommittee, and numerous other national and international organizations involved with
WWF research to improve coordination and minimize duplication.

       EPA has numerous WWF research projects in which we partner with other federal and state
agencies.  For example, we have signed a four year interagency agreement (LAG) with CDC to
evaluate the feasibility of applying CDC/National Center for Infectious Diseases (NCID)-developed
techniques in determining the animal source type of Cryptosporidium oocysts found in water
supplies. This is an important facet of our source water  protection research program. Once the
contamination source type is determined, subsequent investigative and corrective measures that will
protect source waters can be more focused and efficient

       EPA has also signed a three year IAG with USAGE at the Waterways Experiment Station
(WES) in Vicksburg, Mississippi, to develop a numerical watershed model that will predict change
in stream channels from land use change. Both organizations have an inherent interest in developing
the tools to predict such morphologic changes.  Land use changes alter stormwater runoff patterns
which upsets the established equilibrium between the flow and the shape and course of the streambed
                                        11-83

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(stream geomorphology). Under this IAG, the USAGE will modify an existing river model to
account for erosion in small streams.

       Most recently, EPA signed a four year IAG with the Department of Defense to evaluate and
improve intelligent systems technology (e.g., sensors; incorporation of sensors into structural
materials, coatings, liners; correlation of sensor output with structural integrity and residual service
life; integration of structural integrity and hydraulic and fluid quality monitoring) that will enable
effective real-time measurement of the structural condition of infrastruetureto utility managers.  This
structural condition information will provide the basis for optimizing maintenance planning, thus
significantly reducing infrastructure replacement costs and preventing infrastructure failures and
their attendant health, environmental, and economic hazards.

       Finally, EPA is currently working toward collaborative research projects with the USGS on
their National Ambient Water Quality Assessment (NAWQA) program, with discussion focusing
on water quality results in urban areas.  The USGS has data showing that urban streams have high
levels of pesticides, higher than many agricultural area streams, which we can potentially use to
develop a study of urban pesticide sources. EPA will also evaluate how the USGS  data could be
integrated into the GIS database system.

Statutory Authorities

Clean Water Act

Clean Air Act

Coastal Zone Act Reauthorization Amendments of 1990

Safe Drinking Water Act

Toxic Substances Control Act
                                          11-84

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Goal 3: Safe Food

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Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 3: Safe Food	IH-1
       Reduce Agricultural Pesticides Risk	ni-9
       Reduce Use on Food of Pesticides Not Meeting Standards	111-20

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

                                       Safe Food
Strategic Goal:   The foods Americans eat will be free from unsafe pesticide residues. Children
especially will be protected from the health threats posed by pesticide residues, because they are
among the most vulnerable groups in our society.
                                   Resource Summary
                                  (Dollars in thousands)

Goal 03
Obj. 01
Obj. 02

Safe Food
Reduce Agricultural Pesticides Risk
Reduce Use on Food of Pesticides Not
Meeting Standards
Total Workyears
FY1999
Enacted
$67,647.7
$29,333,2
$38,314,5
702.4
FY 2000
Enacted
$82,285.1
$35,826.6
$46,459.2
701.0
FY 2001 FY 2001 Req. v.
Request FY2000Ena.
$86,056.5
$39,057.3
$46,999.2
711.8
$3,771.4
$3,230.7
$540.0
$10.8
Background and Context

       The U.S. Environmental Protection Agency (EPA) plays a major role in the lives of the
American public by ensuring that agricultural use of pesticides will not result in unsafe food. EPA
accomplishes this by registering new pesticide products and reviewing older pesticide products with
the aim of protecting human health and the environment from risks associated with pesticide use.
EPA uses the latest scientific information to ensure that the public's exposure to pesticides will not,
with reasonable certainty, cause harm, either through residues of pesticides on the foods we eat, or
through other exposures.

       Consumers are at risk for potential adverse effects from pesticide residues ingested either
directly or through processed foods. Some pesticides can also "bioaccumulate" in plant and animal
tissue, resulting in higher levels of exposure than would occur through direct means. A critical step
in protecting the public health is to evaluate  food use pesticides for potential toxic effects such as
birth defects, seizures,  cancer, disruption of the endocrine system, changes in  fertility, harmful
effects to the kidneys  or liver, bioaccumulation  or short term  effects such  as headaches  or
disorientation. Ensuring that any residues on food are at acceptable levels is the essence of the Safe
Food goal.

                                          HI-1

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       Pesticides  subject  to  EPA  regulation  include  insecticides, herbicides,  fungicides,
rodenticides, disinfectants, plant growth regulators and other substances intended to control pests.
Pesticides are used in agriculture, greenhouses, on lawns, in swimming pools, industrial buildings,
households, and in hospitals and food service establishments.  Total U.S. pesticide usage in 1995
was about 4.5 billion pounds. Biopesticides and reduced risk pesticides make up about 20 percent
of the total. Agriculture accounts for over 70 percent of all applications.   There are  about 1.3
million certified pesticide applicators in the U.S.  Herbicides are the most widely used pesticides
and account for the greatest expenditure and volume.

       EPA regulates pesticides under two mam statutes: the Federal Insecticide, Fungicide and
Rodenticide Act (FIFRA) and the Federal Food and Drug Control 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.  Because of EPA's work under these
laws, the public enjoys one of the safest, most abundant, and most affordable food supplies in the
world.
       Through its food safety programs,
including encouraging and expediting the
registration of reduced risk pesticides, EPA
enhances  health  and   environmental
protection in a number of ways, including
the following:
       Establishing a single, health-based
       standard for pesticide residues in
       food,   and   eliminating   past
       inconsistencies in the law which
       treated residues in some processed
       foods differently from residues in
       raw and other processed foods;
EPA's Pesticide Regulations Affect a Cross-Section
of the Population:

*      30 major pesticide producers and another 100
       smaller producers
       2500 formulators
•      29,000 distributors and other establishments
•      40,000 commercial pest control firms
•      One million farms
•      Several million industry and government
       users
•      About 90 million households
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•      Providing for a more complete assessment of potential risks, with special protections for
       potentially 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 advances;

•      Expanding consumers' "right-to-know" about pesticide risks and benefits; and

•      Expediting the approval of reduced risk pesticides.


Means and Strategy

       The Agency works toward a two-fold strategy for accomplishing the objectives of the Safe
Food goal:

•      encouraging the introduction of new, reduced  risk pesticide ingredients (including new
       biological agents) within the context of new pest-management practices; and

•      reducing the use of currently registered pesticides with the highest potential to cause adverse
       health effects

       In 2001, the Agency will accelerate the pace of new registrations for pesticides that offer
improved prevention or  risk reduction qualities 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.

       The 2001 request also expands 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 also 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.

       EP Auses its authority under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
and the Federal Food, Drug and Cosmetic Act (FFDCA) to systematically manage the risks of such
exposures by establishing legally permissible food-borne  exposure levels, or tolerances.  EPA
manages the legal use of pesticides, up to and including the elimination of pesticides that present a
danger to human health and the environment. This task involves a comprehensive review of existing
pesticide use as stipulated by the reregistration provision, as well as a comprehensive reassessment
and update of existing tolerances within ten years, as required by FQPA.
                                          III-3

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       Through developing  and using me latest scientific advances in health-risk assessment
practices. EPA is ensuring current uses meet the test of a reasonable certainty of no harm, as
stipulated by FQPA. This includes the incorporation of new scientific data relating to the effects of
endocrine disruption.

       New registration actions result in more pesticides on the market that meet FQPA standards,
which brings the Agency  closer to the objective of reducing adverse risks from pesticide use.
Tolerance reassessments may mean mandatory use changes because a revision in the allowable
residue levels can  involve changes in pesticide application patterns, changes in the foods the
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.

       Finally, in  addition to setting  the requirements of continued legal use  of agricultural
pesticides, EPA works in partnership with USD A, FDA and the states toward the broader effort to
prevent the misuse of pesticides.

       More information about EPA's  food safety efforts is available on the Office of Pesticides
Program's website at http://www.epa.gov/pesticides.
       Research

       Current approaches to human health risk assessment focus on single pesticides and do not
adequately account for cumulative risks arising from complex exposure patterns  and human
variability due to age, gender, pre-existing disease, health and nutritional status, and genetic
predisposition.  Existing tools for controlling and preventing exposure are  limited to certain
processes and materials.

       The Food Quality Protection Act (FQPA) identifies clear science needs consistent with the
evaluation of all potential routes and pathways  of exposures to pesticides, and resulting health
effects, particularly for sensitive subpopulations and considering effects fromcumulativeexposures.

       These needs are overtaxing existing tools.  To meet them, in FY 2001, research will continue
to focus on developing and validating methods to identify and characterize, and models to predict,
the potential increased susceptibility to human health effects experienced by infants and children;
identifying and understanding major exposure routes and pathways and processes, and developing
theoretical and experimentally based multipathway exposure models for pesticides and other toxic
substances; and addressing the adequacy of current risk assessment methods  and  providing the
necessary risk assessment guidance. Pesticide exposure and effects data, risk assessment methods
and models for children, and control technologies developed by FY 2001 will help to improve the
                                          III-4

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Agency's ability to fully comply with the requirements of FQPA5 particularly requirements related
to susceptible subpopulations and cumulative risk.
Strategic Objectives and FY 2001 Annual Performance Goals

Objective 01: Reduce Agricultural Pesticides Risk

•      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.

Objective 02: Reduce Use on Food of Pesticides Not Meeting Standards

»      EPA will reassess an additional 1,200 of the 9,721 existing pesticide tolerances to ensure that
       they meet the statutory standard of "reasonable certainty of no harm" (for a cumulative 60
       percent).
*
•      By the end of FY 2001, complete reassessment of a cumulative 66 percent (560) of the 848
       tolerances of special concern in protecting the health of children.


Highlights

Reduce Agricultural Pesticides Risk

       FFDCA and FIFRA authorize EPA to set terms and conditions of pesticide registration,
marketing and use. EPA will use these authorities to reduce the use of pesticides with the highest
potential to cause cancer or neurotoxic effects, including those which pose particular risks  to
children.

       New food/feed-use pesticides are registered after an extensive  review and evaluation  of
human health and ecosystem studies and data, applying the most recent scientific advances in risk
assessment. The Registration program includes registration activities, such as setting tolerances,
registering new active ingredients, new uses, and handling experimental use permits and emergency
exemptions.

       In 2001, the Agency will continue to decrease the risk the public faces from agricultural
pesticides (from 1995 levels) through the regulatory review of new pesticides, including reduced
risk pesticides and biopesticides.  EPA expedites the registration of reduced risk pesticides, which
pose lower potential dietary risks to consumers, lower risks to agricultural workers, and reduce
potential risk to the earth's ozone layer, groundwater,  aquatic organisms  or wildlife.  These
accelerated pesticide reviews provide an incentive for industry to develop, register, and use lower
                                          III-5

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risk pesticides. Additionally, the availability of these reduced risk pesticides provides alternatives
to older, potentially more harmful products currently on the market

Reduce Food Use of Pesticides Not Meeting Current Standards

       FQPA requires the Agency to revise its risk-assessment practices to incorporate additional
safeguards to ensure the adequate protection of children's health and that of other vulnerable groups,
such as tribes, and to reevaluate some 9,721 food residue tolerances approved before the passage of
FQPA, The Agency has met its first statutory mandate, to reassess 33 percent of these tolerances
by August 1999,  In FY 2001, the Agency will continue toward its 10-year statutory deadline of
reassessing all 9,721 tolerances by reassessing an additional 1,200 tolerances. The Agency will also
continue screening and testing pesticides for their potential to disrupt the endocrine system.

       The tolerance reassessment process strives to address 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.  By 2001, EPA will
reduce dietary risks to children by completing a cumulative 66 percent of these tolerances of special
concern,

       Organophosphates and carbamates have also been targeted as posing higher risks than many
other pesticide types. These pesticides are widely used and limitations will mean changes in current
farming practices. The need for broad input and participation lead to a special stakeholder process
to address data, analysis and regulatory requirements, protocol, and scientific and public review as
the Agency moves to reduce the risks posed by some of these pesticides.

       The Agency's Pesticide Reregistration program is now in its final phase. The Reregistration
program was established in the 1988 amendments to FIFRA and has similar goals to the FQPA's
tolerance reassessment program. Through the Reregistration program, EPA also reviews pesticides
currently on the market to ensure they meet the latest health standards set by FQPA. Pesticides not
in compliance with the new standard will be eliminated or restricted in order to minimize harmful
exposure.  The issuance of a Reregistration Eligibility Decision (RED) for a pesticide under
reregistration review summarizes the health and environmental effects findings  of that pesticide.
The  findings determine whether the products registered  under this chemical are eligible  for
reregistration.

       FQPA has added considerably more complexity into the process of reregistering pesticides.
New statutory requirements have made risk assessment more complex and lengthened the "front
end" portion of reregistration. These requirements include considering aggregate exposure and
cumulative risk, implementing new processes to increase involvement of pesticide users and other
stakeholders, and ensuring a reasonable opportunity for agriculture to make the transition to new pest
                                          IH-6

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control tools and practices. Over the longer run, these changes will enhance protection of human
health and the environment and should speed risk reductions.

       EPA is now conducting reregistration in conjunction with tolerance reassessment, which
FQPA mandates be Completed by 2006. Reregistration of pesticide active ingredients and products
will be completed prior to the statutory deadline for completing tolerance reassessment.  However,
there are increasing indications that all elements of reregistration, especially those elements also
necessary to complete tolerance reassessment, will not be completed for all active ingredients by
2002.

       In 2001, EPA will complete 30 REDs and approximately 750 product reregistrations. By
2006, all 9,721 of the tolerance  reassessments mandated by FQPA will be completed. EPA has
evaluated the two programs and consolidated analyses wherever possible while meeting the goals
of both programs.

       FQPA requires that EPA establish a process for periodic review of pesticide registrations.
This requires the updating of all pesticide registrations using current scientific data, risk assessment
methodology, program policies  and effective risk reduction measures.  In 2001, the Agency will
continue developing the framework for the registration review program.

       Research

       In 2001, research 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 FQPA. One area of increased attention will be cumulative risk.  Research will be
enhanced to address some of the complex issues and uncertainties in this area.  The Agency will
begin to develop a systematic approach for determining cumulative risk for a given set of exposure
conditions, beginning with less complex paradigms and building  toward  the more complex,
including consideration of different temporal dimensions of exposure.
External Factors

       The ability of the Agency to achieve its Goal 3 strategic objectives depends on several factors
over which the Agency has only partial control or little influence. EPA relies heavily on partnerships
with states, tribes, local governments and regulated parties to protect the nation's food supply, the
environment, and human health, from pesticides.

       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. 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 under Goal 3 will have

                                          III-7

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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 Goal 3 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.
                                          III-8

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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

                                     Safe Food


Objective # 1:  Reduce Agricultural Pesticides Risk

      By 2005, the public health risk from agricultural use of pesticides will be reduced by 50
percent from 1995 levels.

                                 Resource Summary
                                (Dollars in thousands)

Reduce Agricultural Pesticides Risk
Environmental Program & Management
Science & Technology
Total Workyears

-
Pesticide Registration
Pesticide Reregistration
Endocrine Ksruptor Screening Program
Pesticide Residue Tolerance Reassessments
Rent, Utilities and Security
Administrative Services
FY 1999 FY 2000
Enacted Enacted
$29^33.2 $35,826.0
$26,438.0 $33,705.4
$2,895,2 $2,120.6
291.3 286.0
Key Programs
(Dollars in thousands)
FY1999
Enacted
$19,661.7
$4,724.0
$1,237.3
$1,040.8
$0.0
$0.0
FY 2001
Request
$39,0573
$36,784.8
$2,272.5
293.5

FY 2000
Enacted
$21,126.3
$4,730.3
$1,695.5
$1,262.3
$3,660.3
$424.7
FY 2001 Req. v.
FY 2000 Ena.
$3,231.3
$3,079.4
$151.9
7.5

FY2001
Request
$25,014.4
$5,087.2
$1,762.6
$1,074.8
$7,724.0
$443.1
                                        III-9

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FY 2001 Request

       The FY 2001 Budget for this objective reflects a requested increase of $3,231,300 and 7.5
FTE over the 2000 Enacted Budget. This increase will be directed at accelerating the pace of new
registrations of reduced risk pesticides, and at increasing the number of new tolerances established.
It reflects the Administration's goals of improving the safety of the food produced and consumed
by the American public, and of continuing the commitment to implement the higher statutory
standard of FQPA, especially in the protection of infants and children. The proposed increases will
build on our partnerships with the United States Department of Agriculture (USD A), Food and Drug
Administration (FDA) and other components of the Department of Health  and Human Services
(HHS), Organization for Economic and Cooperation Development (OECD) and various others to
engage and share information with stakeholders to develop strategies for a smooth transition to
FQPA standards, for the public, industry and agriculture.  Working with our partners, EPA will
ensure that the best available science is incorporated into the implementation of the statute.

       Many pesticides currently on the market  with approved food uses are suspected  to be
potential human carcinogens, neurotoxins  or endocrine disrupters.  They  may also pose  other
significant health concerns, especially to children. The Food Quality Protection Act (FQPA)
provides unprecedented opportunities to protect the health of the U.S. public, and to positively
impact agricultural production techniques, lessening the  overall risk of pesticide use. Further, it
mandates that the Agency continue to review pesticides on a periodic basis to ensure that  those
registered for use meet the most current health standards, thus ensuring that when properly used, we
maintain a reasonable certainty of no harm to human health or the environment. EPA may require
regulatory action where warranted to minimize exposure and thus reduce risk. To address these
concerns,  EPA will  continue  the Registration and Reregistration/Special Review regulatory
programs, giving high priority to the FQPA mandates.  Combined with the review of existing
pesticides through reregistration and tolerance reassessment, the availability of safer pesticides has
improved the risk picture for agriculture.

Registration Activities

       Under the Registration program, EPA registers new pesticides after extensive review and
evaluation of human health and ecological  effects studies and data.  As part of the process, the
Agency analyzes impact data and sets a tolerance level for each crop (use) the registrant designates
for the specific  pesticide. The Registration program gives priority to accelerated processing of
reduced -risk substitutes for products already on the market, thus giving fanners and other users new
tools which are better for health and the environment.

       There is a variety of types of registration activities to meet the needs of the industry and to
assist in internal planning.  Registration activities include new active ingredients, new pesticides
which may simply be new formulations of ingredients already registered, new uses which add a crop
type to the approved uses of the registered pesticide, minor uses for low volume crops, and 'me-toos'
for additional registrants for a pesticide,

                                         111-10

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       In 2001, EPA will continue to implement new science standards required by FQPA and
ensure that pesticides that do not meet current safety standards are removed from use. FQPA has
also added requirements for reviewing the inactive ingredients added to pesticide products. The
Agency will also continue to revisit and revise, as necessary, science policies and risk assessment
tools, methods and models, to ensure sound science and adequate protection of human health.

       EPA has actively encouraged and engaged the pesticide industry, farmers and the public to
participate in the implementation of the new FQPA health-based standards for pesticides. EPA uses
common-sense strategies for reducing risk to acceptable levels while retaining those pesticides of
the greatest public value,  including those
utilized for minor uses and integrated pest
management needs.  EPA works with the
pesticide industry and farmers to explore
approaches in this transition period, such as
granting priority status for registrations of
lower  risk substitutes  for  certain older
pesticides and allowing  for  reasonable
phase out periods for canceled pesticides.
EPA Responds to Requests from States for Pesticide
      Use Emergency Exemptions in FY 1999
             Withdrawn by States
          Decisions Pending
                            Denied
                                            EPA allows States to use pesticides
                                            for an unregistered use for a limited
                                            time if emergency condition
                                            In FY 1999, EPA received 630
                                            requests for emergency
                                            exemptions and approved 455.
                                    Issued/Approved
                                           New Pesticide  Registrations
       Agricultural conditions  and pest
outbreaks are unpredictable and EPA has
tools to  meet  new  or emerging needs.
EPA  will take  prompt  action  on  all
registration actions submitted, particularly
petitions for temporary uses of pesticides to meet emergency conditions and for research purposes.
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.   FIFRA
address other  special needs, including;
provisions to register products by states
for specific local uses not  Federally
registered;   and   provisions  for
experimental use permits (under FIFRA
see.5)  allowing  pesticide producers  to
test new pesticide  uses  outside the
laboratory to  generate information  to
apply  for amendments to  previously
approved pesticides (e.g., to reflect label
revisions or changed formulations for
products already registered).





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                                                                                    Regular
                                                                                     Safer
                                          1990 1991 1992 1993 1994 1995 1996 1997 199S 1999 2000 2001
                                        Regular: Conventional Chemicals sad Antimicrobials
                                        Safer; Biopesticides and Reduced Risk Chemicals
                                          m-n

-------
       The Agency and USDA worked to ensure minor use registrations receive appropriate
support; in particular, working closely to meet the need for newer, reduced risk pesticides registered
for minor uses. The law requires each crop to have its own tolerance for a specific pesticide but
some crops are not produced in quantities to warrant additional investment in data collection by the
registrant company. Still the crop may be of high economic significance to specific localities or
groups of farmers. 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. Besides keeping abreast of new science, EPA must 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 non-target organisms
and the potential for pests to become resistant to the chemical. In 2001, the Agency will continue
to work with industry and USDA on issues that arise from this major change in the agricultural
industry.

Reduced Risk Chemicals andJBiopesticides

       Throughout 2001, EPA will continue 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 toxiciry, 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. Between 1996 and
1999, EPA registered 51 .pesticides that can serve as lower risk alternatives to more toxic pesticides.
The Agency is committed to expediting the registration of additional alternative products and in
2001, the Agency will register 17 reduced risk pesticides.

       Reduced risk pesticides are a key element of effective FQPA implementation. As the Agency
re-evaluates older pesticides and consults with stakeholders on changes to use ("risk management"),
suitable alternatives must be available for farmers to control pests. EPA biologists are also working
with USDA to find alternatives to the products that pose a higher risk, through the Integrated Pest
Management program and other strategies.  Data generated through the USDA's Pesticide Data
Program  (PDP)  is critical to  dietary risk assessments as well as minor  crop registration
determinations.
                                         111-12

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       FQPA provisions mandate a number of measures to increase the safely of the food supply,
and many of the provisions have broad implications for how EPA conducts evaluations of pesticide
uses.   All  tolerance decisions, either associated  with tolerance reassessments or with new
registrations, are subject to new science requirements.  The Agency has engaged the public and the
scientific community in developing and reviewing nine specific science policies for EPA's approach
to screening pesticides.

       While all of the policies are significant, the requirements to consider cumulative and
aggregate impacts as well  as the ten-fold safety factor for  children's health have  important
ramifications  for the 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 members of a widely used class of pesticides already in use that have
a common mechanism of toxicity will show greater risk than if they were considered in isolation.
In 2001, the Agency will expand research support for cumulative risk methodologies, as discussed
under the research section. Aggregate exposure brings  issues of residential exposures and drinking
water residues into the equation.  The extra ten-fold safety factor for children's health has an impact
on data collection. A lower factor can be used, FQPA states, "...only if, on the basis of reliable data,
such margin will be safe for infants and children."  Ultimately these new tools for screening
pesticides will result in an even safer food supply for the American public.  The broad impacts of
the new requirements has lead EPA to engage all stakeholders as well as the scientific community
in the development of the FQPA science policies,

Reduce Agricultural Use of Potential Carcinogenic or Neurptoxic Pesticides

       A large number of current pesticides with approved food uses are  classified as potential
human carcinogens or neurotoxins. EPA is moving deliberately to minimize dietary exposure from
pesticides with the highest potential to cause
cancer or neurotoxic effects.   Major tasks
required over the next few years to address
these  groups  of  chernicals   include   the
development  and  refinement  of  science
policies, and the expansion and refinement of
use information.  Outreach and  coordination
are essential as  well, through  continued
promotion  and adoption of environmental
stewardship and integrated pest management,
acceleration of regulatory reviews and, where
warranted, approvals of effective alternative
tools for pest management.
       Organophosphates, which are highly
effective and in common use, are one class of
pesticides   of  particular  concern.
Organophosphates  can   inhibit   normal
       FQPA Science Policies

1. Applying the FQPA 10-fold safety
factor
2. Dietary exposure assessment methods
3. Exposure assessment
4. Dietary exposure estimates
5. Drinking water exposures
6. Assessing residential exposure
7. Aggregating exposures from non-
occupational sources
8. Cumulative risk assessment for
pesticides with common methods of toxicity
9. Selection of appropriate toxicity endpoints
(critical effects)
                                         HI-13

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functioning of the nervous system, causing nausea, dizziness, confusion, and at high exposures,
respiratory paralysis and death. As a result, the registration of substitutes is a priority.

       In addition to new products being introduced to the marketplace, EPA is focusing on
reducing the risks of existing pesticides in a manner that is least disruptive to growers. The Agency
has identified a spectrum of approaches for achieving risk management, to be applied depending on
the level of unacceptable risk.  The Agency is also 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.
Working with USD A and HHS data, EPA has identified 20 foods most often consumed by children.
Approximately 848 tolerances are currently in place for the use of various older pesticides on these
foods.  Reassessment of these tolerances is a priority, and in 2001  EPA expects to  complete a
cumulative 560 tolerances.  In 2001, EPA will also work with HHS to enhance food consumption
data, to provide additional information on what people eat with special interest in children's food
consumption.  Other joint projects focus on incorporating the latest science through developing and
validating methods to  analyze domestic and  imported food samples for  organophosphates,
carcinogens, neurotoxins and other chemicals of concern. These efforts will help protect Americans'
health  by assisting in priority-setting as well as improving monitoring of imported foods for
unhealthful pesticide residue levels.
FY 2001 Change from FY 2000 Enacted

EPM

•      (+$ 1,000,000) New investment to increase and accelerate the registration of reduced risk
       pesticides, including biopesticides.

•      (+$ 1,210,000) Increase in workforce cost of living.

*      (+$600,000) New investment to increase the number of new tolerances set for reduced
       risk and conventional pesticides.

•      (+$659,600) Realignment: 3.2.1 Reregistration to Antimicrobials (3.1.1) to more
       accurately display costs.
                                         111-14

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Annual Performance Goals and Performance Measures
Decrease Risk from Agricultural Pesticides

In 2001     Provide timely decisions to the pesticide industry on the registration of active ingredients
            for conventional pesticides including tolerance setting, product registrations and inert
            ingredients.

In 2001     Decrease adverse risk from agricultural uses from 1995 levels and assure that new
            pesticides that enter the market are safe for humans and the environment.

In 2000     Decrease adverse risk from agricultural uses from 1995 levels and assure that new
            pesticides are safe by such actions as registering 6 new chemicals, 2,200 amendments,
            600 me-toos, 200 new uses, 45 inerts, 375 special registrations, 105 tolerances and 13
            reduced risk chemicals/biopesticides.

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:


Register safer chemicals and biopesticides

New Chemicals

Amendments

Me-toos

New Uses

Inerts

Special Registrations

Tolerances

Baseline:    The number of safer pesticides registered (51 as of 9/30/99) since the passage of the
            Food Quality Protection Act in 1996. Outputs compared with the previous year's
            performance.

Reduce use of highly toxic pesticides

In 2001
FY 1999
Actuals
19
7
3586
1022
681
109
455
351
FY 2000
Estimate
13
6
2200
600
200
45
375
225
FY 2001
Request
17
7
2600
800
350
45
375
250

Registrations
Registrations
Actions
Actions
Actions
Actions
Actions
Actions
In 2000
Use of pesticides classified as having the highest potential to cause cancer or neurotoxic
effects that will be reduced by 10%,

Use of pesticides classified as having the highest potential to cause cancer, or neurotoxie
effects, will be reduced by 5%.
                                                 111-15

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Performance Measures:                            FY1999       FY2000        FY2001
                                               Actuals        Estimate        Request

Reduction of pesticide use that has the highest potential
to cause cancer or neurotoxic effects                               5%            10%       Used

Baseline:   Baseline (to be determined) is the use of carcinogenic or neurotoxic pesticides on food
           crops since the passage of the Food Quality Protection Act in 1996. (Percent
           achievement is cumulative).

Reduce Pesticides in Groundwater and Streams

In 2001     Certain pesticides are frequently detected in our nations streams and groundwater, and
           they are also among those with the highest current use. By reassessing the regulatory
           decisions made on these chemicals through reregistration, we will reduce by (to be
           determined) their presence in groundwater and streams.

Performance Measures:                            FY 1999       FY2000        FY2001
                                               Actuals        Estimate        Request

Amount of atrazine and degradates in groundwater and
streams                                                                 to be determined   ppm


Baseline:   Source of data is the U.S. Geological Survey (USGS) National Water Quality
           Assessment Program (NAWQA) that monitors water quality in more than 50 river basins
           and aquifers in the US. Data from NAWQA will be used to develop a baseline for
           assessing the impact and effectiveness of our regulatory decisions on terrestrial and
           aquatic wildlife.
Verification and Validation of Performance Measures

Performance Measure: Number of registrations of reduced risk pesticides

Performance Database: Pesticide Regulatory Action Tracking System (PRATS). PRATS is the
principle activity tracking system for OPPTS.  It is designed to track regulatory submissions &
collections of studies organized by scientific discipline (data packages) submitted by the registrant
in support of a pesticide's registration.  The Pesticide Registration Notice (PRN)   97-3 dated
September 4, 1997 sets the criteria for a reduced risk pesticide.

Data Source:  Office of Pesticide Programs staff (reviewers)

QA/QC Procedures:  Program output

Data Quality Review: Management reviews the program output counts

Data Limitations:  None for tracking because these are program outputs
                                            III-16

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New/Improved Data or Systems: Database (OPPIN) under development will consolidate various
OPP databases - operational FY 2000.  Consolidation will provide one system, merging all data
versus separate systems now tracking different regulatory actions. This system will alleviate the
need for duplicate entry into the separate systems.
Performance Measure: Number of registration actions for new chemicals, amendments, me-
toos, new uses, inerts, special registrations, tolerances

Performance Database:  PRATS (See above for description.); Tolerance Index System (TIS) is
maintained within OPP and contains all the current tolerances, as well as crop residues by crop and
crop grouping for food and feed use. As information is updated, Federal Register staff are notified
of these changes and the registry is updated.

Data Source: OPP Staff

QA/QC Procedures: Program output

Data Quality Review: Management reviews the program output counts,

Data Limitations:  None  for tracking because these are program outputs.

New/Improved Data or Systems: Database (OPPIN) under development will consolidate various
OPP databases -  operational FY 2000. Consolidation will provide  one  system, merging all data
versus separate systems now tracking different regulatory actions.  This system will alleviate the
need for duplicate entry into the separate systems.


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 (PDF) 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 now a critical component of implementing the Food Quality Protection Act by
providing 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

                                        ffl-17

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using cooperative agreements with ten participating states representing all regions of the country.
PDF serves as a showcase for Federal-State cooperation on pesticide and food safety issues.

       The Agency is also developing 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 validation of data submissions. 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.

       While EPA is responsible for making registration and tolerance decisions, the Agency relies
on others to carry out 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.
Statutory Authorities

Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)

                                        111-18

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Federal Food, Drug and Cosmetic Act (FFDCA)




Food Quality Protection Act (FQPA) of 1996
                                      111-19

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

                                        Safe Food


Objective # 2:  Reduce Use on Food of Pesticides Not Meeting Standards

       By 2005, use on food of current pesticides that do not meet the new statutory standard of
"reasonable certainty of no harm" will be substantially eliminated.
                                   Resource Summary
                                  (Dollars in thousands)
                                         FY1999
                                         Enacted
           FY 2000
           Enacted
          FY2001
           Request
        FY 2001 Req. v.
         FY 2000 Ena.
Reduce Use on Food of Pesticides Not Meeting
Standards

   Environmental Program & Management

   Science & Technology

       Total Workyears
$38,314.5
$46,459.2
$46,999.2
$540.0
$30,537.8
$7,776.7
411.1
$37,150.6
$9,308.6
415.0
$35,380.9
$11,618.3
418.3
($1,769.7)
$2,309.7
3.3
                                      Key Programs
                                   (Dollars hi thousands)

Pesticide Reregistration
Endocrine Disruptor Screening Program
Pesticide Residue Tolerance Reassessments
Rent, Utilities and Security
Administrative Services
FY1999
Enacted
$22,227.8
$1,436.5
$9,057.2
$0.0
$0.0
FY2000
Enacted
$20,586.3
$4,869.8
$10,335.5
$458.0
$552.4
FY2001
Request
$23,858.0
$3,978.8
$6,647.9
$473.5
$571.6
                                          111-20

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FY 2001 Request

       The FY 2001 budget for this objective reflects a requested increase of $540,000 and 3.3 FTE
from the FY 2000 Enacted Budget. This increase includes an offset to EPA's appropriated budget
of $7,000,000 in anticipation of tolerance fee collections in FY 2001, an increase of $2,294,400 to
start the Registration Review Program; and a $3,000,000 increase for tolerance reassessments.  By
reassessing tolerances, EPA is reviewing the risk assessment for each chemical with food uses to
make sure that the tolerances meet the stricter FQPA safety standard. FQPA requires that EPA give
priority to review of tolerances that appear to pose the highest risk to public health. FQPA also
requires that EPA consider whether infants and children, or other sensitive  subpopulations,  are
especially vulnerable to the effects of a pesticide.

       Risk assessments are the basis for the Agency's decisions on tolerance setting. They involve
a series of sophisticated analyses of the potential health and environmental effects resulting from
exposure to a chemical through various means.  Draft risk assessments go through both scientific
peer review and a public review  process.  Pesticide companies must submit a wide variety of
scientific studies for review before EPA will set a tolerance.  The data are designed to identify
possible harmful effects the chemical could have on  humans (its toxicity), the amount of  the
chemicals (or breakdown products) likely to remain  on or in food, and other possible sources of
exposure (e.g., through use in homes or other places). In reassessing tolerances, EPA reviews data
currently available and may request additional data if requirements have changed or there appear to
be data gaps or risk questions that are not answered adequately.
                                             Q
                                             Q
       In 2001,  EPA will  begin receiving
additional studies for about 140 pesticides of
particular concern.  In  1999,  EPA issued a
"data call-in" for specific studies on these
pesticides.     Many   currently-registered
pesticides are suspected pf adversely affecting
the nervous system. The data call-in identifies
pesticides that are thought to have neurotoxic
effects.  At issue is the margin of safety that
may  be  needed  for  tolerances  on  these
pesticides, particularly  where children are
concerned.  FQPA requires a ten-fold margin
of safety for children unless data show it is not necessary.

       Keeping older tolerances levels updated using with the latest scientific information is an
ongoing  priority for the pesticides program. FIFRA '88 required a review of tolerances for all
pesticides registered prior to 1984. FQPA sets in place a new program, called Registration Review,
which will routinely and periodically update the tolerance levels for registered pesticides every 15
years, avoiding the need for "catch-up" programs in the future.
        1999 Data Call-in:
studies responding to the questions:

  Do these pesticides pose a greater risk
  to children?
  Do they harm the nervous system
  during critical stages of development,
  both before birth and after?
  Are the effects in the young different
  from those observed in an adult?
                                         111-21

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           Progress of Pesticide
   Reregistrations Since FIFRA '
    Reregistrations Remaining (31%)
    Voluntarily Canceled (38%)
Reregistrations Completed (Ji%)
                                            1999
Complete Active  Ingredient  and
Product Reregistration

       Through the  Reregistration
program, now in its final phase, EPA
will continue to review  pesticides
currently on the market  to  ensure
that these too meet the FQPA health
standard. Those pesticides found not
in compliance will be eliminated or
otherwise restricted  to  minimize
harmful exposure. The issuance of a
Reregistration Eligibility Decision                         / .  -    ~'^tf*lIR«.	1988
(RED) summarizes the health and
environmental   effects  findings
during the reregistration  review  of
the chemical. This finding determines whether the products registered under this chemical are
eligible for reregistration. In 2001, the Agency will complete 30 REDs.

       As pesticides go through reregistration, they may meet certain criteria that will trigger a
process called a special review. These criteria include findings of (a) acute toxicity to humans or
domestic animals, (b) potentially chronic or delayed toxic effects in humans or hazards to non-target
organisms, (c) risk to threatened or endangered species, (d) risk to critical habitats of threatened or
endangered species, and (e) any other unreasonable adverse effects to humans or the environment.
The special review subjects the pesticide to a more in-depth analysis to determine with reasonable
certainty that no harm will occur when used.

       Many of the reviews that are required by the reregistration program overlap with tolerance
reassessment efforts,  although each program also has unique requirements.  EPA has evaluated the
separate and joint  requirements and consolidated the work wherever possible.  As a result, all
tolerance work under the reregistration program meets the FQPA standards.

Reassessment of Existing Pesticide Residue Tolerances on Food

       A tolerance is the maximum legal amount of a pesticide residue permissible on food. FQPA
requires that EPA reassess within ten years the more than 9,721 pesticide tolerances existing in 1996.
The first statutory deadline was to complete reassessment of 33 percent of the existing tolerances
by August 1999, EPA surpassed this goal, reassessing approximately 39 percent of the tolerances,
most of them among the highest priority group. The Agency will continue its reassessment of these
tolerances and expects to  reassess approximately  1,200 tolerances hi 2001.
      111-22

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       FQPA standards are having a great impact on the way pesticides are reviewed and the
Agency requests increased resources of $3,000,000 to ensure the most recent, soundest science is
applied consistently as part of a broad process including all stakeholders as well as the scientific
community. The Agency has worked extensively with stakeholders through the Pesticide Program
Dialogue Committee and the Tolerance Reassessment Advisory Committee to ensure transparency
in decision making and a fuller understanding of the implications for growers, producers and the
public. Particular emphasis remains with facilitating a smooth transition to safer pesticides, and the
Agency continues to coordinate closely with USDA as well as industry and commodity groups in
finding alternatives and sharing information. Organophosphates, a higher risk set of pesticides, are
also widely used and changes in availability will impact farmers. To address the issues around OP
replacement, the Agency and USDA have developed a pilot review process that expands public
participation.

       Current pesticides which do not meet the FQPA mandated standard of "reasonable certainty
of no harm" will not receive approval for food use, or the approved use patterns may be changed.
FQPA's more stringent standard for food reduces dietary exposure to potentially  toxic pesticides.
The Agency has revised its risk assessment practices to incorporate the new provisions and increase
protection of the health of children and other vulnerable groups. While refining the nine key science
policies addressed by FQPA through  peer review and public comment, the Agency applies the
policies as appropriate, where the weight of evidence supports the determination, after scientific peer
review.

       The risk assessment includes consideration of the amounts and types of food people eat and
how widely the pesticide is used (that is, how much of the crop is actually treated with the pesticide),
as  well as  chemistry,  toxicity  and
exposure information. EPA obtains data
from a wide variety of sources including
USDA surveys on what foods people eat
and the quantity they eat, FDA residue
monitoring, and U.S. Geological Survey
information  on  pesticide  levels  in
ground, surface and drinking water. The
risk assessment and adjunct  analyses
determine  the   outcomes  for  the
tolerances on food.
Tolerance Reassessment Status
Highest Risk
   Medium
    Risk

i 217 ;."

13

67

149 1

156


336




1


13 Tolerances Completed
D Tolerances Pending



                                                      200
                                                              400
                               600
       Options for risk reduction range     Lower Risk
from  revocation  of the  tolerance to
modifications  in  use, as reflected in
label  changes.   Of the  tolerances
completed  by July  1999,  about  45
percent were revocations. Many of those resulted from canceled registrations or other actions other
than full reassessments, while the remaining one-fourth or so were risk-based. Nonetheless all of
                                         111-23

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the revocations reduced risk to some degree, since until the formal revocations were in place, it was
legal to import foods with residues from those pesticides. Risk can also be reduced through changes
to the actual use of the pesticide. For example, the pesticide could be applied in lower quantities,
or less frequently, or at a greater distance from water bodies. Other risk reduction possibilities are
phase-outs and changes to the conditions of registration (e.g., production limitations).

       One  example of  a  regulatory risk reduction  action was  the one taken on two
organophosphates in 1999. Aftermonthsof reviewingstudies, refining risk assessments, stakeholder
discussions and negotiations with registrants, EPA moved to protect children's health by canceling
the use of methyl parathion on all fruits and vegetables, and by modifying the current use practice
for azinphos methyl on apples, pears and peaches.   Risk assessment data indicated that methyl
parathion is one of the most toxic organophosphate pesticides registered, The acute dietary risk to
children was more than seven times the level of concern. For azinphos methyl, the aggregate risk
from food and drinking water was above the level of concern for nursing infants and children up to
age six.

       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. Highest risk pesticides are in Priority Group 1,
which includes organophosphates, carbamates, and probable carcinogens, among other high risk
chemicals, and totals 5,546 tolerances. Group 2 includes some carcinogens as well as pesticides in
the reregistration process that have not had a decision, for a total of 1,928 tolerances and Group 3
includes the remaining pre-FQPA and post-1984 pesticides. EPA expects to  complete almost all
Group 1 tolerance reassessments by the end of 2001.  Some Group 2 and lower priority Group 3
tolerances have been reassessed as part of the work already underway in the reregistration program.

       FQPA stipulates that EP A's program to establish and reassess tolerances be self-supporting,
and the tolerance fee rule was proposed in F Y 99. During  2001, in anticipation of implementation
of the Tolerance Fee Ride and collection of fees, resources  for the tolerance program were offset by
$7,000,000. This offset makes timely implementation of the rule essential for the continuity of
program operations.

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.  This program will be a major new
undertaking for the Agency.  The registrations of all pesticides will be continuously updated with
respectto current scientific data, risk assessment methodologies, program policies, and effective risk
reduction measures, ensuring that they meet the most current health standards. Ongoing efforts in
1999 and 2000 continue developing the infrastructure needed to establish the program, including the
stakeholder involvement and issuance of a proposed rale.
                                          111-24

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       In 2001, efforts will center on finalizing the regulation, taking into consideration stakeholder
input. 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.  The FIFRA fund that supports  the
reregistration process through the collection of maintenance fees will expire in 2001, so funding for
the new registration review process will need to be planned.

Endocrine Disrupters

       FQP A and the Safe Drinking Water Act Amendments of 1996 require the Agency to screen
new chemicals and test those currently in use for their potential to disrupt  the endocrine systems of
humans and wildlife. The endocrine system helps guide development, growth, reproduction and
behavior.  This is a critical issue, especially for children, since exposure to endocrine disrupters
during the gestation period or infancy can pose serious and permanent developmental problems.

       Adequate  methods to  determine  endocrine disrupting potential are  only now under
development by the Agency, following an extensive and successful scientific advisory process.
Additional resources are requested in FY 2001 to support the validation of the screening methods
in this new area of science. During 1999, EPA began work on two major activities to implement the
screening and testing program: the standardization and validation of mammalian screening assays
and development of the priority-setting data base. Work will continue in both of these areas in FY
2000. EPA will complete work on the priority setting data base in FY 2000 and will complete
validation of all the mammalian tier I screens in 2001. EPA will require screening of chemicals in
commerce for endocrine disrupting potential in FY 2002. By 2005, the Agency expects to have
screened all HPV chemicals for endocrine disrupting potential as part of the Administration's Right-
to-Know Initiative. Testing will also have been initiated on some of the resulting priority chemicals
using the methods validated by EPA.

       Work on pesticide and chemical endocrine disrupters crosses two EPA goals, relating to both
pesticides and all other toxic chemicals (Goals 3 & 4).  The measures for both chemicals and
pesticides endocrine disrupter work are shown in Objective 4.3.
       Research

       The Food Quality Protection Act (FQPA) of 1996 jdentifies clear science needs consistent
with the evaluation of all potential routes and pathways of exposures and effects to pesticides,
particularly for sensitive subpopulations and considering effects from cumulative exposures. Major
uncertainties hi the area of sensitive subpopulations relate to the degree to which current risk
assessment practices provide adequate protection. These uncertainties can be expressed in questions
such as the following:
                                         111-25

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•      What are the health endpoints of greatest concern in children?

•      What are the most vulnerable developmental/maturational periods?

•      Do exposures experienced by children produce qualitatively different effects from those
       experienced by adults?

       Uncertainties associated with cumulative risk  relate to our ability to assess risk from
aggregate or  cumulative exposure to single  chemicals or to  mixtures of chemicals.  These
uncertainties can be articulated through such scientific questions as:

•      What  are the human health effects associated with multiple, short-term exposures to
       pesticides and other toxic chemicals that differ from those resulting from chronic exposures?

       What are the human health effects associated with exposures to mixtures of pesticides and
       other toxic chemicals with similar modes of action that differ from those associated with the
       individual chemicals?

       To address these and other issues related to implementing FQPA, research in FY 2001 will
continue to focus on developing and validating methods to identify and characterize, and models to
predict, the potential increased susceptibility to human health effects  experienced by infants and
children; identifying and understanding major exposure routes and pathways and processes, and
developing theoretical and experimentally based multipathway exposure models for pesticides and
other toxic substances;  and addressing  the adequacy  of current risk assessment methods  and
providing the necessary risk assessment guidance.

       More  specifically, health effects  research will continue  to focus on developing new and
improved test methods to evaluate the effects of environmental exposure to pesticides and other
chemicals in  sensitive subpopulations.   A specific  element of this work will be directed at the
development of methods to evaluate the effects to the developing organism  as a result of pre- and
perinatal exposures. These include in utero (i.e., transplacental) and lactational exposure studies.
Research will also focus on: 1) developing methods to evaluate the effects of cumulative exposures
to pesticides and toxic chemicals, including both long-term exposures and multiple acute exposures;
and 2) developing or improving models to extrapolate findings and predict health effects, including
physiologically-based pharmacokinetic (PBPK) models to improve dose estimation across exposure
scenarios, biologically-based dose-response (BBDR) models to reduce uncertainty in extrapolations
(e.g., from high doses hi animals to environmental  exposures in humans),  and structure-activity
relationship (SAR) models to improve hazard characterization.

       Much of the exposure research will also focus on infants and children. One major goal is to
identify those pesticides, pathways, and activities that represent the highest  potential exposures to
children and to determine the factors that influence these exposures. The research will be used to

                                         111-26

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develop methods, data, and models for evaluating aggregate exposure to pesticides and toxic
chemicals. Efforts will focus on high level, short-term exposure resulting from recent pesticide
applications. Studies in five areas (microenvironments/macroactivity patterns for children;pesticide
use patterns; distribution of pesticide residues in nonoccupational microenvironments; exposure
assessments using the microactivity approach; and exposure assessments using the macroactivity
approach) will be supported during F Y 2001, providing critical data needed to develop the approach
for exposure assessments,  and inputs for models of children's exposure.  The Agency will also
support extramural grants to develop biological markers as new approaches for assessing aggregate
exposures and effects in children.

       Another important goal is to develop  probabilistic models to estimate exposures and
absorbed dose to environmental contaminants by children and adults.Jnitially this research places
more emphasis on children's exposure to pesticides in residential settings, since young children are
potentially at higher risk for greater exposures to pesticides.^. Exposures to other toxics in the
environment  will subsequently be investigated using  a  multimedia/multipathway modeling
framework similar to that being developed for pesticide exposures.

       Risk assessment research will develop methods for combining exposures and assessing
exposure-dose-response relationships for pesticides and other compounds with common modes of
action and different exposure patterns. Case studies using data from all available sources will be
developed focusing on aggregating exposure and risk to multiple chemicals from multiple pathways.

       Additionally, in F Y 2001, the Agency will initiate/enhance its efforts to address uncertainties
in the areas of cumulative risk and intermittent exposure.

       To address some of the complex uncertainties in the area of cumulative risk, the Agency will
enhance efforts to develop a systematic approach for determining the cumulative risk for a given set
of exposure conditions. This approach will start with less complex paradigms (e.g., risk from
aggregate exposure to a single chemical, or class with a postulated common mode of action, which
is present in multiple pathways) and build towards the more complex including consideration of
different temporal dimensions of exposure. In each case, work will employ an integrated model for
estimating cumulative risk by identifying and defining the relationship between the determinants
of source(s)-pathway(s)-exposure-dose-cumulative risk. Understanding these relationships would
also better focus and guide risk management decisions and allow for more accurate prediction if
determinants change (e.g., addition or reduction in a source in a given setting).  Analyses will also
be directed at defining the key drivers for each component of this pathway to facilitate extrapolation
to similar exposure situations. This approach will also provide the opportunity to assess the validity
of current risk assessment methods and models to account for multiple sources/exposures, stressors
and toxicities.
                                         111-27

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       The Agency will address uncertainties related to intermittent exposure by developing data,
methods, and models for characterizing and combining exposures and assessing exposure-dose-
response relationships for pesticides with different exposure patterns (inclusive of temporal, spatial*
and multipathway considerations), with an emphasis on developing a foundation for a cumulative
risk  assessment methodology.  Research will also be supported to improve risk management
strategies and  tools for reducing potential  health risks  to  children and other highly exposed
populations.
       The FQPA  research  program provides
direct support to EPA's Office of Prevention,
Pesticides,  and  Toxic  Substances   (OPPTS)
through the development of specific test methods
that will be used to develop new or revised test
guidelines under the Toxics Substances Control
Act  (TSCA)   and  the  Federal  Insecticide,
Fungicide, and Rodenticide Act (FIFRA) that will
be necessary for the Agency to comply with the
provisions of 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.
         FQPA Research
     Areas of Emphasis in FY 2001
                          14.3%
                                   13.3%
 .72.4%
| Cumulative risk research initiative
| Intermittent exposure research
[ Base FQPA research in support of 10x
 safety factor, etc., with emphasis on
 children
       FQPA research is also supported through the Agency' s Postdoctoral Initiative. The FY 2001
request continues the third year of the effort to enhance our intramural research program by
supporting 1.4 additional postdoctoral positions under this objective. This enhancement continues
to build upon the positive response by the academic community to EPA's announcement of 50
postdoctoral positions for FY1999.
Annual Performance Goals and Performance Measures

Reassess Pesticide Tolerances

In 2001     EPA will reassess an additional 1,200 of the 9,721 existing pesticide tolerances to ensure that
           they meet the statutory standard of "reasonable certainty of no harm" (for a cumulative 60
           percent).

In 2001     By the end of FY 2001, complete reassessment of a cumulative  66% (560) of the 848
           tolerances of special concern in protecting the health of children.

In 2001     Assure that older pesticides  active ingredients and the products that contain them are
           regularly reviewed to assure adequate protection for human health and the environment.
           Also, consider the unique exposure  scenarios such as subsistence lifestyles of Native
           Americans in our regulatory decisions.
                                           111-28

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FY 1999
Actuals
1445
14
746
FY 2000
Estimate
1250
20
750
FY2001
Request
1200
30
750

Actions
Decisions
Actions
In 2000     EPA will reassess 20% of the existing 9,721 tolerances to ensure that they meet the statutory
            standard of "reasonable certainty of no harm."

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:
Tolerance Reassessment

REDs

Product Reregistration

Tolerance reassessments for top 20 foods eaten by
children                                                                             208      Tolerances

Baseline:    Baseline is number of tolerances reassessed (from universe of 9,721) set in 2000 and number
            of REDs issued and pesticides reregistered in 2000. The Agency anticipates that the efforts
            currently being conducted on organophosphates in  FY 2000 will result in  tolerance
            completions in FY 2001.  Of the total of 9,721 tolerances to be reassessed by EPA over ten
            years, 848 fall within the subset having the greasiest potential impact on childrens' health.
            As of the end of FY 1999, a total of 352 of these tolerances have been reassessed.

Registration Review

In 2001     Issuance of proposed rule for Registration Review

In 2000     Issuance of the ANPR rule for Registration Review

Performance Measures:                               FY 1999        FY2000         FY2001
                                                    Actuals         Estimate         Request

Issue Registration Review rule                                        ANPR           1 Proposed  Rule

Baseline:    The rule will establish the framework for the
            registration review program required by FQPA.


Research

Research to Support FQPA

In 2001     Develop pesticides exposure and effects data, risk assessment methods and models for
            children, and control technologies needed to comply with the requirements of FQPA.

In 2000     Provide methodologies to evaluate the risk to human health posed by food-use products.

Performance Measures:                               FY 1999        FY2000.      FY2001
                                                    Actuals         Estimate         Request

First generation multimedia, multipathway exposure

                                                111-29

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model for infants and young children and the identification
of critical exposure pathways and factors.                             09/30/2000                 model

Develop and validate a new and improve an existing method
to evaluate the effects of pre- and perinatal exposure to
pesticides and other toxic substances.                                 09/30/2000                 method

Develop a method to evaluate the human health effects
of cumulative exposure to pesticides and other toxic
substances.                                                       1                          method

Develop dose-response relationships to evaluate risks to
human health from exposures to mixtures of pesticides
and other toxic chemicals with the presumed same mode
of action.
                                                 09/30/2000

Describe age-dependent differences in responses to one
or more pesticides                                                                09/30/01

Report on Factors for Children's Exposure to Pesticides.                                1           report

NHEXAS: Evaluate available measurement data on
aggregate human pesticide exposures in the NHEXAS
probability sample of people in 3 areas of the U.S.                                                evaluation

Baseline:   The Food Quality Protection Act (FQPA) of 1996 directs EPA in its assessments of pesticide
           safety to address the cumulative effects of pesticides that have a common mechanism of
           toxicity, considering aggregate dietary and non-occupational sources of exposure. Current
           approaches to human health risk assessment focus on single pesticides and do not adequately
           account for cumulative risks arising from complex exposure pattern and human variability
           due to age,  gender, pre-existing  disease, health  and  nutritional status,  and genetic
           predisposition. Tools which are currently available to control and  prevent exposure are
           limited to certain processes and materials.  Research  is  needed  to comply with the
           requirements of FQPA, with special attention to potential health risks to infants and children.
FY 2001 Change from FY 2000 Enacted

EPM

•       (+1,700,000) This new investment will implement the recommendations of the Endocrine
        DisraptorScreening and Testing Advisory Committee (EDSTAQandcontinuethe screening
        and testing of pesticides, commercial chemicals and drinking water source contaminants for
        potential to disrupt the endocrine system and provide sound scientific methods information
        for protecting human health and wildlife.

•       (-$2,500,000)  Congressional add-on in FY 2000 enacted budget for endocrine disrupter
        program not carried forward into FY 2001.
                                              111-30

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S&T
      (+$3,000,000) Increased resources to support the Tolerance Reassessment program and to
      maintain pace with growing demands  due to changes in risk assessments processes and
      stakeholder consultation.

      (-$7,000,000) Offset to appropriated  dollars in anticipation of the promulgation and
      implementation of new tolerance fee rale to recover full cost of setting tolerances as required
      by FQPA.  This offset makes timely implementation of the rule essential for the continuity
      of program operations.

      (+$2,294,400) Investment to establish the new Registration Review program that was
      required by FQPA and will review existing pesticide registrations every 15 years.

      (+$1,000,000) Increase in workforce cost of living.

      (-$216,200 and 2.3 FTE) represent share of additional FTE cuts as directed hi the FY 2000
      EPA enacted budget.
       Research
       (+$1,458,300, +5.0 workyears) EPA will enhance research to address some of the complex
       uncertainties in the area of cumulative risk. The Agency will strengthen efforts to develop
       a systematic approach for determining the cumulative risk for a given set of exposure
       conditions.  This approach will start with less complex paradigms and build towards the
       more complex, including consideration of different temporal dimensions of exposure.  In
       each case, an integrated model will be used to estimate cumulative risk by identifying and
       defining the relationship between sources, pathways, exposure and dose. Understanding
       these relationships will improve the Agency's ability to meet its performance objectives in
       implementing the requirements of FQPA.

       (+$1,420,600, +3.0  workyears) Resources will  be redirected to support research on
       intermittent exposure.  Research will focus on developing data, methods, and models for
       characterizing and combiningexposuresand assessing exposure-dose-response relationships
       for pesticides with different exposure patterns. Improved risk management strategies and
       tools will also be developed for reducing potential health risks to children and other highly
       exposed populations. This research builds on the Agency's movement toward a capability
       to conduct health risk assessments based on conditions of real-life environmental exposure,
       and will improve the Agency's ability to fully implement the requirements of FQPA.

       (-$374,800, -1.3 workyears)  The R&D program, including infrastructure support costs, is
       spread across eight of the ten goals in the Agency's GPRA/budget structure. Based on a


                                         111-31

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      review of actual infrastructure utilization under each goal (i.e., operating expenses and
      working capital fund), adjustments are being made across goals to more accurately reflect
      expectations for use in FY 2001.
Verification and Validation of Performance Measures

Performance Measure:  Number of Reregistration Eligibility Decisions (REDs)

Performance Database: Pesticide Regulatory Action Tracking System (PRATS). PRATS is the
principle activity tracking system for OPPTS. It is designed to track regulatory submissions &
collections of studies organized by scientific discipline (data packages) submitted by the registrant
in support of a pesticide's registration.

Data Source: OPP Staff

QA/QC Procedures: Program output

Data Quality Review: Management reviews the program output counts.

Data Limitations:  None for tracking because these are program outputs.

New/Improved Data or Systems: Database (OPPIN) under development will consolidate various
OPP databases - operational FY 2000.  Consolidation will provide one system versus separate
systems now tracking different regulatory actions.


Performance Measure:  Number of tolerances reassessed

Performance Database: Tolerance Reassessment Tracking System (TORTS) is an in-house (OPP-
wide) system containing records on all 9,721 tolerances subject to reassessment. Data was extracted
from Tolerance Index System (TIS). It contains numbers of total tolerances reassessed; breakout by
FY, source, & priority group; outcomes of reassessments (number of tolerance  levels raised,
lowered, revoked,  remaining same).  It  also  provides count of tolerances reassessed  for
organophosphates, carbamates,organochlorines,carcinogensand high hazard inerts, kids' foods, and
minor uses.

Data Source: OPP staff

QA/QC Procedures: Program output.

Data Quality Review: Management reviews the program output counts. Tolerance counting rules
reviewed for consistency across programs

Data Limitations:  None for tracking because these are program outputs.

                                        111-32

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New/Improved Data or Systems:  New System.   Established specifically for Food Quality
Protection Act (FQPA) needs.
Performance Measure: Number of products reregistered

Performance Database: PRATS (See above for PRATS description.)

Data Source: OPP staff

QA/QC Procedures: Program output

Data Quality Review: Management reviews the program output counts.

Data Limitations;  None for tracking because these are program outputs.

New/Improved Data or Systems: Database (OPPIN) under development will consolidate various
OPP databases - operational FY 2000.  Consolidation will provide one system versus separate
systems now tracking different regulatory actions,


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 implementationof pesticide programs
from key stakeholders and the public.  EPA works with other government officials, regulated
industry, agricultural and other user groups, food processors, academia, environmental and public
interest groups, the international community and the media to reach all interested parties.

       In implementing  FQPA, EPA has consulted with key constituencies on a wide range of
critical issues. Standing committees that are providing, or have provided advice to EPA include:

•      The Food Safety Advisory Committee (FSAC)--created to specifically provide advice from
       grower groups, industry, public health organizations, Congress and academia. FSAC held
       its final meeting in December 1996.

•      The Endocrine Disrupters  Screening and Testing Advisory Committee  (EDSTAC)—
       established to give advice and counsel on developing a strategy to screen and test endocrine

                                        ffl-33

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       disrupting chemicals and pesticides—includes representatives of industry, state and federal
       government, public health,  environmental, labor  organizations, small businesses  and
       academia.

       The Pesticide Program Dialogue Committee (PPDC)—a previously chartered group designed
       to assist EPA in making decisions related to pesticide regulation—consists of a diverse group
       of representatives with a broad range of interests.  The PPDC will provide EPA with
       continuing advice on implementation of FQPA.

       EPA's FIFRA Science Advisory Panel (SAP) and Science Advisory Board (SAB) provide
       independent scientific peer review.

       The State FIFRA Issues Research and Evaluation Group (SFIREG) allows state input and
       comments from the public.

       The Consumer Labeling Initiative (CLI)—established to learn how to make important health,
       safe use and environmental information on household product labels easier to find, read,
       understand and use-includes members from EPA, industry, other federal and state agencies
       and private groups.

       The Tolerance Reassessment Advisory Committee (TRAC) headed jointly by the EPA
       Deputy Administrator and the USDA Deputy Secretary received diverse stakeholder input
       on the tolerance reassessment of organophosphatepesticidesand other implementation issues
       associated with carrying out FQPA.
       Research

       Two significant areas of interagency coordination with respectto implementation of the Food
Quality Protection Act (FQPA) include: 1) submission of a cross-agency food safety budget for
2001; and 2) research under the National Health and Nutrition Examination Survey (NHANES).

       In response to publicly identified needs to strengthen the coordination of food safety
activities and responsibilities among federal agencies, the President issued Executive Order 13100
hi August 1998 to establish the Council on Food Safety. The Council is co-chaired by the Secretary
of the Department of Agriculture (USDA), the Secretary of the Department of Health and Human
Services (DHHS), and the Director of the Office of Science and Technology Policy (OSTP). EPA
is one of the primary federal agencies involved in food safety research. In 2001, EPA will be
participating, together with these other agencies, in a cross-agency budget submission on food
safety.

       The National Center for Health Statistics (NCHS) of CDC is conducting the NHANES-4,
which is  a population based survey of the national population and includes data on potentially
sensitive  subpopulations, such as children and the elderly.  EPA is participating in this survey with
NCHS to collect information on children's  exposure to  pesticides and  other environmental
contaminants.

                                        111-34

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Statutory Authorities:
Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)
Federal Food, Drag and Cosmetic Act (FFDCA)
Food Quality Protection Act (FQPA) of 1996
Toxic Substances Control Act (TSCA)
      Research
Food Quality Protection Act (FQPA) of 1996
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
Toxic Substances Control Act (TSCA)
Federal Food, Drug, and Cosmetic Act (FFDCA)
                                       111-35

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Goal 4: Preventing Pollution

-------
Environmental Protection Agency
2001 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 Exposure to Pesticides  	,	,	IV-14
       Reduce Lead Poisoning	IV-24
       Safe Handling and Use of Commercial Chemicals and Microorganisms	 IV-31
       Healthier Indoor Air	,	IV-45
       Improve Pollution Prevention Strategies, Tools, Approaches	IV-54
       Decrease Quantity and Toxicity of Waste	,	IV-65
       Assess Conditions in Indian Country ,	   W-74

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                           Environmental Protection Agency

           FY 2001 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 cost-effectively
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 hi
this nation.
                                 Resource Summary
                                 (Dollars hi thousands)

Goal 04


Obj. 01

Obj. 02
Obj. 03

Obj. 04
Obj. 05

Obj. 06

Obj. 07


Preventing Pollution and Reducing
Risk in Communities, Homes,
Workplaces and Ecosystems
Reduce Public and Ecosystem
Exposure to Pesticides
Reduce Lead Poisoning
Safe Handling and Use of Commercial
Chemicals and Microorganisms
Healthier Indoor Air
Improve Pollution Prevention
Strategies, Tools, Approaches
Decrease Quantity and Toxicity of
Waste
Assess Conditions in Indian Country
Total Workyears
FY1999
Enacted
$237,990.3


$43,240.2

$30,722.7
$42,868.2

$29,095.7
$22,346.6

$17,561.2

$52,155.7
1,118.9
FY 2000
Enacted
$277,597.3


$51,892,3

$27,390.6
$66,866.8

$39,915.5
$23,649.5

$15,056.6

$52,826.0
1,176.1
FY2001 FY2001Req.v.
Request FY 2000 Ena.
$301,046.3


$55,971.7

$28,213.9
$70,983.3

$41,159.0
$24,505.5

$16,016.6

$64,196.3
1,186.5
$23,449.0


$4,079.4

$823.3
$4,116.5

$1,243.5
$856.0

$960.0

$11,370.3
11.0
Background and Context

       EPA uses a number of approaches to protect public health and the nation's ecosystems from
the risks of exposure to pesticides or toxic chemicals. The underlying principle of the activities in
this goal is the application of pollution prevention.  Preventing pollution before it may harm the
                                         IV-1

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environment or public is cheaper and smarter than costly cleanup and remediation.  In 1998, 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 improvesefficiency, thereby lowering costs for industry. Pollution
prevention involves changing the behavior of those that cause the pollution and fostering the wider
use of preventive practices as a means to achieve cost effective, sustainable results.  For example,
the Design for the Environment and Green Chemistry programs strive to change the behavior of
chemists and engineers to incorporate pollution prevention and environmental risk considerations
in their daily work.

       In  Goal 4, the Agency targets certain chemicals of high risk as well as the full range of
pollutants addressed by the pollution prevention program. Many chemicals are particularly toxic to
children. At high levels, lead, for instance, damages the brain and nervous system and can result in
behavioral and learning problems.  Despite a dramatic reduction in lead  exposure among young
children over the last twenty years, there are  still approximately 900,000 children hi the U.S. with
elevated blood lead levels. Exposure to asbestos, PCBs and other chemicals in our buildings and
in the environment poses risks to humans as well as wildlife. For other common chemicals, the risks
may not be known. The screening and testing of chemicals about to enter the market, combined with
the review of the most common chemicals already in use (Chemical Right-to-Know), fill gaps hi our
knowledge.  Contaminants present in the indoor environment may also pose a significant health
threat, and certain sensitive populations, especially children, may be disproportionately at risk.
Since 1980 the prevalence rate of asthma has  increased by 75%, so that now, approximately 17
million Americans suffer from asthma.  Nearly 1 in 13 school-aged children has asthma, and the
percentage of children with asthma is rising more rapidly in preschool-aged children than in any
other age  group.  Certain contaminants found indoors are known to play a significant role in
triggering asthma episodes in people  who  have the disease, and  in some cases,  are causally
associated with the development of the disease itself.

Means and Strategy

       The diversity and fragility 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 pesticide and toxic chemicals. The underlying principle of the activities in this goal is the
application of pollution prevention, which is  cheaper and smarter than  costly cleanup and
remediation, as evidenced with Superfund, Resource Conservation and Recovery Act (RCRA), and
Polychlorinated Biphenyls (PCB) cleanups.

       Under this Goal, EPA ensures that pesticides and their application methods do not present
unreasonable risk to human health, the environment, and ecosystems. In addition to the array of
risk-management  measures entailed in the registration  authorities under  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, effective
use of antimicrobial agents. These programs work  to ensure the comprehensive protection of the

                                         IV-2

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environment and wildlife in general, endangered species in particular, and to reduce the contribution
of pesticides to ecological threats such as pollutant loading in select geographic areas. Within this
context, EPA pursues a variety of field activities at the regional, state and local levels, including the
promotion of pesticide environmental stewardship. EPA is also addressing emerging threats such
as endocrine disrupters by developing and implementing new screening technologies to assess a
chemical's  hormonal activity.   Finally, EPA promotes the use of sensible Integrated Pest
Management (IPM) and the prevention of misuse in the panoply of uses within both the urban and
rural environments.

       Much remains to be done to safeguard our Nation's communities, homes, workplaces and
ecosystems. Preventing pollution through regulatory, voluntary, and partnershipactions -- educating
and changing the behavior of our public — is a sensible and effective approach to sustainable
development while protecting our nation's health. Two groups with significant potential to effect
environmental change are industry and academia and the Agency  pursues a number of these
pollution prevention programs with both of the these groups. Likewise, improved understanding of
the risks to health from airborne toxic chemicals indoors may strengthen our ability to  reduce
residents'  exposure through voluntary changes  in  behavior  and through potential product
reformulation.

       Preventing pollution through partnerships is central to the Administration's Chemical Right-
to-Know initiative launched in 1998. This initiative provides the public with information on the
basic health and environmental effects of the 2,800 highest production volume (HPV) chemicals
in the United States.  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 is
the  focus of a the  "HPV Challenge  Program",  a voluntary program recognizing  industry's
contribution to the public knowledge base on these prevalent chemicals. More than 211 companies
have committed to voluntarily provide these test data for more than 1,152 of the HPV chemicals, a
remarkable expression of partnership between government and the private sector. Risks to children
is a particular focus, and the Agency will supplement the information from industry with additional
testing to identify and address chemicals of concern for children's health.

       Children's health is also the continuing focus of the multi-agency initiative begun in 2000
to combat asthma in children. Efforts in  2001 will target reductions in the presence of indoor
triggers of asthma, such as environmental tobacco smoke and biological contaminants, by educating
the public about the disease and the steps  they can take to reduce the severity and frequency  of
asthma attacks. Additional voluntary work will be undertaken by schools to empower their students
to manage their asthma symptoms better, by school personnel to improve the indoor environments
of their  schools, and by  health-care personnel  to incorporate  education about  managing
environmental asthma triggers into asthma treatment plans for their patients. Partnerships with non-
profit environmental and public health organizations with a particular focus on children are being
used to bring about voluntary reductions in exposure to asthma triggers found indoors.
                                         IV-3

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       Reducing indoor air pollution is a high priority for the Agency.  U.S. residents spend most
of their time indoors and the pollutants indoors can be in much higher concentrations than what
occurs outside. Further, poor indoor air quality is implicated hi childhood asthma. Recent studies
indicate nearly 1 of 13 school age children have asthma.  Over the last 20 years the number of deaths
from asthma has increased three-fold.  Partnerships, technology transfer and public awareness are
key tools in reducing indoor air pollution.

       Also central  to the Agency's work under this goal in 2001 will be increased attention on
documenting and taking action to reduce risk from persistent, bioaccumulative and highly toxic
chemicals (PBTs) and from chemicals that have endocrine disruption effects.  PBT chemicals are
of particular concern not  only because they are toxic  but also because they may remain  in the
environment for a long period of time, are not readily destroyed, and may build up or accumulate
in plant or animal tissue, and in cases involving mercury, polychlorinated biphenyls (PCBs) and
lead, in human tissue. Pollution prevention and controlling releases are the mainstays of protection
for chemicals that exhibit these effects.

       The Agency mixes both regulatory and voluntary methods to accomplish its job. For
example, each  year the New Chemicals program reviews and manages the risks of 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  immediate threats of  harmful
chemicals, like PCBs, from entering the marketplace but it has also contributed  to changing the
behavior of the chemical industry, making industry more aware and responsible for the impact these
chemicals have on human health and the environment.  This awareness has led industry to  produce
safer "greener" alternative chemicals and pesticides.  Fewer harmful chemicals  are entering the
marketplace and our environment today because of the New Chemical Program.

       The Design for the Environment (DfE) and Green Chemistry Programs build on and expand
the new chemistry efforts.  They target industry and  academia to maximize the impact  of the
Agency's pollution prevention efforts. 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 from the
manufacture of printed wiring boards.

       The Pollution Prevention (P2) Framework developed in 1998 and 1999 is another example
of  EPA  successfully influencing  industry's  approach  to  chemical  selection prior  to
commercialization.  The P2 Framework integrates analytical methods and tools that help predict
risks of chemicals,  based on chemical structure;  allows stakeholders to evaluate and compare
chemical choices and  to identify environmentally preferable products and processes; and helps
industry identify risk issues early hi product development, when pollution prevention opportunities
are most cost-effective.

       In several cases, achieving the strategic objectives under this goal is a shared responsibility
with other federal  and state agencies.  For example, EPA's role  in reducing the levels of

                                          IV-4

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environmental lead exposure involves promotion of federal-state partnerships to lower specific
sources of environmental lead, such as  lead-based paint and other lead-content products.  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 (e.g., Centers for Disease Control (CDC), and Department of Housing
and Urban Development (HUD)) to  monitor and reduce  environmental lead levels. Likewise,
achieving the goals of the multi-agency effort to substantially increase the government's  efforts to
combat asthma in children requires effective collaboration between EPA and other Federal  agencies.

       Intrinsic to the effort to prevent pollution is the minimization of the quantities of waste
generated by industry, municipalitiesandhazardous-waste management operations. Strategies range
from fostering materials reuse and recycling and other resource-recovery processes to broad-based
campaigns to re-engineer the consumption and use of raw materials or personal  conservation of
resources. Effective and sustainable programs reduce the need for storage, treatment or disposal of
hazardous or municipal wastes, while  reducing costs to industry and municipalities.

       Since this  Goal focuses on how Americans live 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 5 54 tribal governments and remains
cognizant of the Nation's interest in conserving the cultural uses of natural resources.
       Research

       Currently, there are significant gaps with regardto understanding of actual human exposures
to pesticides and toxic substances in consumer products in residential environments and potential
human health risks from such exposures to the general population and susceptible subpopulations,
such as infants and children.  Methods for detecting and estimating human exposures to these
chemical stressors are extremely limited.  Health effects information is not available for most of
these stressors. Tools that are currently available to control or prevent exposures are also limited
to certain processes or materials. Research is needed to improve the characterization of health risks
associated with community exposures to environmental chemical  stressors and to develop more
advanced control technologies to mitigate and eliminate human exposures to these stressors.  To
meet this need, the 2001 research program will develop exposure data, health risk assessment
methodologies, and control technologies to improve the characterization of health risks and reduce
community exposures to environmental chemical stressors.
                                          IV-5

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Strategic Objectives and FY2001 Annual Performance Goals

Objective 01: Reduce Public and Ecosystem Exposure to Pesticides

•      Protect homes, communities, and workplaces from harmful exposure to pesticides and
       related pollutants through improved cultural practices and enhanced public education,
       resulting in a reduction (to be determined) in the incidences of pesticide poisonings reported
       nationwide.

Objective 02: Reduce Lead Poisoning

•      Administer federal programs and oversee state implementation of programs for lead-based
       paint abatement certification and training in 50 states and on tribal lands, to reduce exposure
       to lead-based paint and ensure significant decreases in children's blood levels by 2005,

Objective 03: Safe Handling and Use of Commercial Chemicals and Microorganisms

•      Ensure that of the up to 1800 new chemicals and microorganisms submitted by industry each
       year, those that are introduced in commerce are safe to humans and the environment for their
       intended uses.

•      EPA will initiate safety reviews on chemicals already in commerce by obtaining data on an
       additional 10% of the 2800 HPV chem. on the master test list, as part of the implementation
       of a comprehensive strategy for screening, testing, classifying and managing the risks posed
       by commercial chemicals.

Objective 04: Safe Handling and Use of Commercial Chemicals and Microorganisms

»      890,000 additional people will be living in healthier residential indoor environments.

•      2,580,000 students, faculty and staff will experience improved indoor air quality in their
       schools.

Objective 05: Improve Pollution Prevention Strategies, Tools, Approaches

•      The quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or
       combusted for energy recovery, (normalized for changes in industrial production) will be
       reduced by 200 millions pounds, or 2%, from 2000 reporting levels.
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Objective 06: Decrease Quantity and Toxicity of Waste

•      Divert an additional 1 % (for a cumulative total of 30% or 67 million tons) of municipal solid
       waste from land filling and combustion,  and maintain per capita generation of RCRA
       municipal solid waste at 4.3 pounds per day.

Objective 07:  Assess Conditions in Indian Country

•      Baseline environmental information will be collected by 34% of Tribes (covering 50% of
       Indian Country),
Highlights

       EPA seeks to prevent pollution at the source as the first choice in managing environmental
risks to humans and ecosystems. Where pollution prevention at the source is not a viable alternative,
the Agency will employ risk management and remediation strategies in a cost effective manner.
Reducing pollution at the source will be carried out using a multi-media approach in the following
environmental problem areas:

Reduce Public and Ecosystem Exposure to 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
through direct handling, groundwater contamination or aerial spray. One intent of the Food Quality
Protection Act (FQPA) is to protect the public by shifting the nation toward safer pesticide use.
Appropriate transition strategies to safer pesticides are important to the nation to avoid disruption
of food supply or sudden changes in the market that could result from abruptly terminating the use
of a pesticide before well-targeted safer equivalents can be identified and made available. For these
reasons, the Strategic Agricultural Partnership initiative continues to be an important priority in
2001. The Strategic Agricultural Partnership assists in developing alternative pest managementtools
and effective implementation approaches. The Agency will work closely with industry, agricultural
pesticide users and other stakeholders to develop an effective transition to the safer pesticides and
pest management practices envisioned by the FQPA.  In 2001, the initiative will expand efforts to
reach more farmers, encourage them to adopt safer pesticides, use environmental stewardship and
integrated pest management practices, and adopt a "whole farm" approach to environmental
protection.

       In 2001, through the Certification and Training (C&T)  and Worker  Protection (WP)
programs, EPA will  continue increasing  agricultural workers' awareness and knowledge of the
dangers of pesticides and good worker safety practices.  EPA will continue to protect the Nation's
ecosystems and reduce  impacts  to endangered  species through the Pesticide Environmental
Stewardship Program (PESP), and integrated pest management (IPM). The Agency will emphasize

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efforts with our tribal partners to address pesticide issues and enhance the development of tribal
technical capacity, particularly hi the areas of risk management, worker safely, training, and
pollution prevention.

      Together, the WP and the C&T programs address the problem of worker pesticide exposure.
These programs safeguard workers from occupational exposure to pesticides by providing training
for workers, employers, and pesticide applicators and handlers.  Training and certification of
applicators of restricted use pesticides further ensures that workers and other vulnerable groups are
protected from undue pesticide exposure  and risk.  Recertification  requirements  keep their
knowledge current with label changes and application improvements.  The Groundwater Strategy,
a cooperative effort with states and regions to develop Pesticide Management Plans (PMPs), will
further efforts to prevent pesticide pollution of surface and groundwaters. The Endangered Species
program will enlist the support of the agricultural community and other interested groups to protect
wildlife and critical habitats from pesticides.   This voluntary program  is carried out through
communications and outreach efforts and in coordination with other federal agencies. The Pesticide
Environmental Stewardship Program (PESP) and Integrated Pest Management (IPM) play pivotal
roles in moving the nation to the use of safe pest control methods, including reduced risk pesticides.
These closely related programs promote risk reduction through  collaborative efforts with
stakeholders to utilize safer alternatives to traditional chemical methods of pest control.

      Antimicrobial sterilants and disinfectants are  used to kill microorganisms on surfaces and
objects 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 on meeting other requirements for antimicrobial sterilants set forth by FQPA.

Reduce  Lead Poisoning

      EPA is part of the Federal effort to address  lead poisoning and elevated blood levels hi
children by assisting in, and in some cases guiding, federal activities aimed at reducing the exposure
of children hi homes with lead-based paint. During FY 2001, EPA will continue implementing its
comprehensive program to reduce the incidence of lead poisoning and elevated blood levels hi
children nationwide. The Agency has established a national program to oversee the training and
certification of lead-based paint abatement and inspection professionals. Many states and several
Tribes have been authorized by EPA to administer and enforce this program. EPA is responsible for
administering and enforcing the program in the remainder of the states and tribal lands.

       In F Y 2001, EPA will finalize two new proposed regulations addressing renovation activities
in housing, and lead paint removal from buildings, bridges and steel structures. EPA will also issue
final regulations that will allow for safe and cost-effective disposal of lead painted debris.  EPA,
(HUD), and the Department of Justice (DOJ) continue to enforce regulations requiring the disclosure
of information about lead-based paint during real estate transactions.  EPA recently issued a final
rule that requires contractors to provide lead hazard information to consumers before renovation or
remodeling hi homes built before 1978.

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       In FY 2001, EPA will continue its program to educate the public about childhood lead
poisoning. These activities are coordinated with other federal agencies such as HUD and the CDC,
as well as state, tribal and local governments.

Safe Handling and Use of Commercial Chemicals and Microorganisms

       Under TSCA, EPA  identifies and controls unreasonable risks associated with chemicals.
In 1998, the Vice-President called on EPA to launch the Chemical Right-to-Know Initiative,
addressing 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, communities, environmental groups, States and the
Regions.

       Another Agency priority is implementation of the Endocrine Disrupter Screening Program
(EDSP). The EDSP is based on the recommendations of the Endocrine Disrupter Screening and
Testing Advisory Committee (EDSTAC), which provided advice and counsel to the Agency on  a
strategy to screen and test chemicals and pesticides that may cause endocrine disruption in humans,
fish, and wildlife. In 1999, EPA began the validation of EDSP screening test protocols which will
be completed in 2001. By 2005, EPA anticipates that all high production volume chemicals will be
screened for endocrine disrupting potential. The resulting priority chemicals will be tested using the
approach and test methods developed from recommendations of the EDSTAC.

       In 2001, EPA will also continue efforts in three important program areas: existing chemicals;
new chemicals; and national program chemicals (including lead, fibers, dioxin, PCBs, and mercury).
The Agency reviews chemicals already in commerce, along with chemicals or microorganisms
before commercialization (i.e., "new" chemicals) to determine whether they can be handled and used
safely.  Another key focus is green chemistry, which  identifies opportunities for increasing the
design, development and use of inherently safer or "greener" chemicals and chemical processes.
For those 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. EPA's PCB control efforts will shift from enforcing PCB use
standards toward encouraging phase-out of PCB electrical equipment, ensuring proper waste
disposal methods and capacity, and fostering PCB site cleanups. An Agency-wide dioxin strategy
will respond to the latest science and address dioxin risk management in a more comprehensive
cross-media approach. EPA is also continuing work on its Dioxin Exposure Initiative which focuses
on identifying and quantifying the link between dioxin sources and the general population exposure.

Achieving Healthier Indoor Air

         In FY 2001, the  Indoor Environments program will continue to emphasize  children's
health with an emphasis on implementing steps to reduce the number of children affected by asthma
from indoor environmental exposure.  In particular, the Agency will continue its education and
outreach activities which implement portions of "Asthma and the Environment: An Action Plan to

                                         IV-9

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Protect Children,"  the  inter-agency plan developed  under the President's Task Force  On
Environmental  Health Risks  and Safety Risks to Children.  EPA's activities  are directed at
increasing the extent to which children with asthma, parents/caregivers, and schools understand and
take action on the links between the condition of their indoor environments and asthma. EPA works
in close collaboration CDC and the National Institutes of Health (NIH) to help ensure that each
organization is  conducting discrete activities that complement those being conducted by other
organizations.  In addition, the Agency will continue its efforts to improve indoor air quality in
Tribal lands.  While many of the issues are the same, radon, ETS, increasing incidents of asthma,
Agency efforts  often require a greater focus on capacity building and sensitivity  to customs and
culture,

Decrease the Quantity and Toxicity of Waste

       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.

       In the hazardous waste arena, regulated under RCRA Subtitle C, the RCRA program focuses
on the most persistent, bioaccumulative and toxic (PBT) chemicals, consistent with  the national and
international priority on reducing the presence of PBTs in the environment.  In 2001, the Agency
will encourage and support implementation activities to meet our GPRA commitment of reducing
PBT chemicals  in RCRA hazardous waste, thereby decreasing human and environmental exposure
to toxic wastes.  This will include waste reuse and recycling efforts which preserve natural resources
and enhancement of industry partnerships to minimize hazardous wastes by building on the tools and
coordination activities already established.

       The Agency will continue reducing the barriers to safe recycling of hazardous waste through
changes to recycling regulatory standards, and ongoing outreach to stakeholdersto explore additional
options.

       EPA is also a leader in reducing generation of municipal and industrial solid waste regulated
under RCRA Subtitle D and improving the recovery and conservation of materials through source
reduction  and recycling. With our stakeholders, we have promoted financing and technology
opportunities for recycling/reuse businesses.  In 2001, 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.

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

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manner that affirms the vital trust responsibility that EPA has with some 554 Tribal governments.
The Agency will concentrate on building Tribal infrastructure and completing a documented baseline
assessment of environmental conditions in Indian country to enable EPA/Tribes to identify high
priority human health and environmental risks.  These 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. By the end of 2001, EPA expects to complete key reforms to the
Agency's data infrastructure to address Tribes,  By the end of 2001, EPA will also complete a
baseline assessment of 3,8% of Indian country using existing information. EPA anticipates that
existing information will provide a sufficient basis for sound environmental planning and program
implementation in some areas. In other areas, EPA anticipates the baseline assessment will identify
key data  gaps for resolution.  By the end of 2000, EPA will have  invested $2.1 million in these
activities.

       In'200.1, EPA is requesting an additional $10  million (total of $52.6 million) for Indian
General Assistance Program grants. These resources will allow at least 80 additional Tribes to
support at least one or two persons working in their community  to build a strong, sustainable
environment for the future. These people perform vital work by assessing the status of a Tribe's
environmental condition and developing the infrastructure for 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  mat, 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.

       In accordance with the President's 1994 Memorandumand its own 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 proposing
appropriations language that would provide another tool to implement its federal programs while
removing existing legal and procedural impediments to working directly and effectively with Tribal
governments.  The proposed language would allow EPA  to award cooperative agreements to
federally recognized Indian Tribes or Intertribal consortia if authorized by their Tribal members to
assist the Administrator in implementing federal environmental programs for Indian Tribes.   The
proposed language would improve environmental protection while  also building the capacity and
expertise of the Tribes to run their own environmental programs.

       Research

       In FY 2001, research will continue to develop exposure data, health risk assessment
methodologies, and control technologies to improve the characterization of health risks and reduce
community exposures to environmental chemical stressors. For example, health effects research will
continue to focus on developing mechanistically-based predictive  models for human health risk
assessment, such as structure'-activity relationship (SAR) models to help determine testing needs
                                        IV-11

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under Section 5 of TSCA, which addresses new chemicals. The Agency will alsojssue guidance on
the use of SAR computer technologies in FY 2001.

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.

       EPA's ability to achieve the goals and objectives is also predicated on an adequate level of
resources for direct program implementation by EPA as well as for delegated programs.  The
objectives in this plan are based on current funding levels. If appropriations are lower or different
from requested, some objectives may be difficult or impossible to achieve. 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 tune frame specified.

       Large-scale accidental releases (such as large oil  spills) or rare catastrophic natural events
(such as volcanic eruptions) 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
time frame for achieving many of the goals and objectives. In particular, pesticide use is affected
by unanticipated outbreaks of pest infestations and/or disease factors, which requires 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  (new products, amendments, uses, etc.),  so  its
projection of regulatory workload is subject to change.

       To achieve our collective goal of healthy indoor environments, EPA collaborates with
federal, State, Tribal  and local  government agencies,  industry,  and non-profit organizations.
Partnerships with these organizations are the primary method the Agency uses to reduce public risk.
The indoor air quality activities conducted through these partnerships are non-regulatory and rely
on effective public outreach and education, incentives, and voluntary actions to protect health to

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influence individuals (e.g., homeowners, school administrators, parents, building owners) to take
action to reduce their risk. A key external factor which may impact the successful attainment 0f the
indoor environments goal is the ability of states with relatively small programs to leverage their
resources to achieve adequate results. In many cases, resources are limited and compete with
federally mandated regulatory programs.

       The Agency's ability to achieve its objective of decreasing the quantity and toxicity of waste
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 develop, for example, the
RCRA Persistent, Bioaccumulative, and  Toxics (PBT) list and other tools that will focus state
activities on shared EPA and state goals.

       In addition, recycling rates are affected by shifts hi prices 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 that encourage market development

       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 Administiation, the Indian Health Service and the Corps of Engineers to help build
programs on Tribal lands. Changing priorities in these agencies could adversely affect their ability
to work with EPA in establishing and implementing strategies, regulations, guidance, programs and
projects that affect Indian Tribes.
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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and CongressionalJustification

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


Objective # 1:  Reduce Public and Ecosystem Exposure to 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 Exposure to
Pesticides
Environmental Programs & Management
Science & Technology
State and Tribal Assistance Grants
Total Workyears
•

Pesticide Registration
Pesticide Reregistration
Endocrine Disrupter Screening Program
Pesticide Applicator Certification and Training
FY 1999 FY 2000
Enacted Enacted
$43,240.2 351,892,2
$29,281,0 $37,973.4
$844.6 $804.2
$13,114.6 $13,114.6
230.2 232.9
Key Programs
(Dollars in thousands)
PY 1999
Enacted
$8,201.8
$5,265.6
$276.7
$10,438.0
FY2001
Request
555,971.7
$42,007.0
$850.1
$13,114.6
234.6

FY2000
Enacted
$11,346.3
$4,517.3
$544.0
$9,391.2
FY2001Req.v.
FY 2000 Ena.
$4,079.5
$4,033.6
$45.9
$0.0
1.7

FY2001
Request
$12,053.5
$3,037.4
$584.0
$10,587.0
                                       IV-14

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Pesticides Program Implementation Grant

Rent, Utilities and Security

Administrative Services

Regional Management
                                                       $13,114.6

                                                           $0.0

                                                          $16.7

                                                              0
$13,114.6

 $3,858.3

  $436.2

   $13.8
$13,114.6

 $3,749.0

  $462.6

   $23.0
                                  Regional Pesticide Worker Protection efforts will focus on three areas:

                                  1. Coordinate with state and tribal partners to assess compliance and
                                  evaluate the effectiveness of Worker Protection Standards,

                                  2. Build stronger links to the farm worker community to provide a field
                                  level perspective on the effectiveness of the national program.

                                  3. Continue to build better links to the health care communitj to support
                                  a national effort to improve the recognition and management of pesticide
                                  related illnesses.
FY 2001 Request

       The FY 2001 budget for this objective requests an increase of $4,079,500 and 1.7 FTE over
the F Y 2000 Enacted Budget.  Funding will help farmers transition to safer pesticides as a result of
stricter FQPA standards.  In FY
2001, EPA will utilize 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  u	——	i
application  techniques.    This
allows us to develop an integrated plan for pollution prevention. EPA will continue its commitment
under  this objective to protect agricultural workers, to certify and train pesticide applicators, to
protect endangered species and ecosystems from the harmful effects of pesticides, to develop and
implement environmental stewardship and integrated pest management pollution prevention
strategies and to protect our nation's groundwater from pesticide contamination.

Reduce Human Exposure to Pesticide Use

       In 2001, through the Certification and Training Program (C&T) and the Worker Protection
Program (WP), EPA will increase workers' awareness and knowledge 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 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.
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       EPA will continue efforts to prevent household and other pesticide misuse in rural and urban
areas focusing on poor communities where there are proportionate public health risks to residents,
especially children. EPA will employ product stewardship with manufacturers and distributors, and
work with states to improve their certification and training programs.  Efforts are continuing to
improve consumer product labels, pesticide containers and their distribution, and direct enforcement
activities to prevent improper sales of agricultural pesticides.  The public education campaign
continues, which includes working with low income and minority communities to demonstrate safe
and effective pest management and control.
      r  ,^ ™    -,  ,,      •    •  ,  . ,          !                 On June 26,  1996,  the
      In 1999, EPA piloted four projects in the Atlanta,     |                     ...           .     _
      Chicago, San Francisco and Seattle regions. The      \          A8eney  published  a notice of
      projects included a broad range of activities such as:    j          proposed   rule-making,
                                                  i          proposing to establish a new
             Development of crop profiles to provide better
             data on pesticide use
regulatory   mechanism  -
Pesticide  Management  Plans
             Pesticide residue studies which may provide   ,           ,__ _ .          , ,
             more accurate risk assessments for minor use            (PMPs)  ' to enable states  to
             applications
manage pesticide use in order to
             An analysis of current pesticide use in the     |          protect   ground water   from
             grape industry keying on viable alternatives   j          contamination.   The proposed
             A study on mitigation of pesticide risk through ;          fule  impiements  a   key
             biological controls, alternative cropping                              _  ,    .       ,
             systems, precision pesticide application and   !          component of the  Agency s
             other practices.                                    1991 Pesticides and Ground
                                                            Water  Strategy, and  reflects
                                                            many years of discussion and
                                                            input  from  States  and  other
stakeholders. A PMP is a 12-point program of State(or Tribal) assessment and management of
pesticide use and contamination potential, designed to protect groundwater from contamination that
may pose an unreasonable risk to human health or the environment.

       Through the development and use of PMPs, EPA is proposing to restrict the use of certain
pesticides by providing  States and Tribes the flexibility to protect the groundwater in the most
appropriate way for local conditions. This approach capitalizes on the most effective and efficient
roles for State, Tribal and Federal governments  to collaborate in the protection of the nation's
groundwater resources.  EPA is proposing to restrict the legal sale and use of five  pesticides -
atrazine, simazine, cyanazine, alachlor and metolachlor - through EPA-approved PMPs.
                                          IV-16

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      The Strategic Agricultural Partnership Initiative will continue to expand and develop pest
management  strategies which demonstrate  alternatives to harmful  pesticides  and assist the
agricultural industry in meeting state and Federal safe food standards. EPA will implement an
additional 10-15 model agriculturalpartnershipprojectsthat demonstrate farm management practices
and provide growers with information to assist a "reasonable transition" away from the highest risk
pesticides (those likely to be lost under FQP A implementation). 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, IPM and Best Management Practices
(BMPs), soil and water conservation, handling and storage of hazardous materials  and solid waste
management.  Model or demonstration sites are  used for  purposes of outreach, education and
compliance assistance for other agricultural operations throughout the state.

Reduce Environmental Exposure to Pesticide Use

      In FY 2001, EPA and USDA will  expand efforts 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 Integrated Pest Management (IPM) and Pesticide Environmental Stewardship (PESP), and
develop and evaluate new pest management technologies.
           'Whole Farm Approach"
         Soil And Water
         Conservation
   ; Handling And Storage
   ; Of Hazardous
   'Materials
    Disposal Of Pesticides
    And Animals Waste
 Chemical Runoff From
 Pesticides, Fertilizers
j And Animal Waste
The Pesticide Environmental Stewardship Program and Integrated Pest Management are
                                               closely related programs that promote
                                               risk  reduction   by   using   safer
                                               alternatives to traditional chemical
                                               methods of pest control. PESP entails
                                               voluntary partnerships with pesticide
                                               users  to  reduce  both  health  and
                                               environmental   risks  while
                                               incorporating   pollution  prevention
                                               strategies.  Partners and supporters of
                                               PESP play vital roles in developing
                                               common sense approaches to pesticide
                                               risk reduction.  PESP supporters have
                                               an interest in risk reduction because
                                               they  use  agricultural  products  or
                                               represent groups which are affected by
                                               pesticides. This program was initiated
                    Evaluating Farm
                      Operations
                     Protecting Workers From
                     Farm Hazards Including
                     Pesticides And Training  |
                     Applicators On Proper Use,
      Pesticide Spray I
      Drift      I
                                         IV-17

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in 1994, prior to FQPA, however, Its focus is consistent with the statute's goals in reducing risk in
agricultural and nonagricultural settings. PESP grants provide assistance to partners and supporters
in developing and implementing  risk reduction strategies,  EPA and USDA will continue to
encourage and support IPM practices, fostering the managed use of an array of pest control methods
(biological, cultural and chemical) that achieve the best results with the least adverse impact to the
environment.

      The Endangered Species Protection Program (ESPP), started in 1988, is largely voluntary
and relies on cooperation between the U.S. Fish and Wildlife Service (FWS), EPA Regions, states,
and pesticide users. The Endangered Species Act is intended to protect and promote the recovery
of animals and plants that are in danger of becoming extinct because of human activity. Under the
Act, EPA must ensure that use of pesticides it registers will not result in harm to the species listed
as endangered and threatened, or harm the habitat critical to those species' survival. To implement
the  ESPP, labels of certain pesticides direct users to bulletins with information that will protect
endangered and threatened species from harm resulting from pesticide use.

      In order to protect listed species from detrimental effects from the use of pesticides,  the
Agency will do the following:

»     Use sound science to  assess the risk of pesticide exposure to listed species.
•     Attempt to find means to avoid concerns for listed species. When we cannot avoid concerns,
      we then consult  with the scientists at the FWS.
•     Implement use limitations by adding a generic label statement; developing county bulletins
      that contain maps of species'  locations and pesticide use limitations;  distributing  the
      bulletins and other materials by  a  wide variety of methods; and  providing a toll-free
      telephone number to assist users in determining whether they need a bulletin and where to
      obtain one.
»     Encourage individual states to develop their own plans by whatever approach they determine
      is best for them as long as  the approach meets the goals of protecting endangered species
      while minimizing the impact on pesticide users.

      States are also a part of the county bulletin review process, along with other agencies.  The
states are encouraged to include state agricultural, fish and wildlife agencies, as well as pesticide
users, in their review process.

      Antimicrobial sterilants and disinfectants are used to kill microorganisms on surfaces and
objects  in hospitals, schools, restaurants and homes.  EPA registers and regulates antimicrobial
pesticides under the Federal Insecticide, Fungicide  and Rodenticide Act (FIFRA).  To obtain
registration, manufacturers of antimicrobial products must meet the basic standards,, the foremost
being:

•     The product will not cause unreasonable adverse effects to human health or the environment
•     Product labeling and composition comply with the requirements of FIFRA.

                                         IV-18

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       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 microorganismsand to support the
directions for use provided in labeling;  i	'	™	"	\
labeling that reflects the required elements
for safe and effective use; and toxicology
data to document any hazards associated
with use of the product.
                                          Antimicrobials Used in the U.S.
                                          There are approximately 8,000 antimicrobial pesticide
                                          products and 300 active ingredients registered with
                                          EPA. In 1995,3.3 billion pounds of active ingredients
                                          were used.
                                          *      2.3 billion Ibs. hypoehlorite/chlorine
                                                 chemicals for disinfecting water, including
                                                 drinking water
                                          *      0.7 billion Ibs wood preservatives
                                          *      0,3 billion Ibs "other" including public health
                                                 pesticides such as disinfectants and sanitizers
                                                 used in medical facilities; metal working
                                                 fluids, painting and coatings.

                                          Today, approximately one billion dollars each year are
                                          spent on a variety of different type of antimicrobial
                                          products.
       Increased  concern  has  emerged
regarding whether public health products,
used to kill microorganisms pathogenic to
man on inanimate surfaces and objects in
hospitals, schools, restaurants, and homes,
work as claimed on the label. The private
and public sector communities including
competitor registrants, have made  the
Agency aware of sterilizers and hospital
disinfectants  which  may be ineffective.
Sterilizers  and   disinfectants   are
increasingly vital to containing infections
that -are resistant to antibiotics, in •clinical  L-——^—••—--	••	—
settings. EPA has  responded  to  this
situation by  developing a comprehensive strategy to improve the regulation of antimicrobial
pesticides.

       One of the main components of the strategy is better coordination with stakeholders and co-
regulators. EPA has greatly improved communications with the public, all levels of government,
academia, user communities, industry, health professionals, trade organizations, and independent
testing groups. The Agency will publish a quarterly newsletter designed to educate the general
public about the status and direction of the regulation for antimicrobial products.

       The other key link in the strategy to improve the regulation of antimicrobial products involves
internal Agency processes. EPA has committed funds  to ensure that the tests used to demonstrate
the efficacy of antimicrobial products are reliable and reproducible.  Internal controls are being
perfected to ensure the integrity of data submitted by registrants.  Further, the Agency  is in the
process of developing a complaint system to handle concerns regarding ineffective products. The
Agency is actively working to ensure that all antimicrobial products sold and distributed in the
marketplace are effective in protecting public health and the environment from potential health risks.

       Reducing the risks  of pesticide exposure is a particular challenge on tribal lands. Native
Americans consume different sorts of foods from the average, and may have, other farming practices.
                                           IV-19

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Their pattern of exposure may diverge from the general public dietary or exposure information
gathered by USDA, FDA or the registrant.  What's more, outreach and education tools must be
matched to tribal needs.  In 2001, the Agency will continue to team with our tribal partners to
address pesticide issues and enhance the development of tribal technical capacity, particularly in the
areas of risk management, worker safety, training, and pollution prevention. The effectiveness of
our field programs on tribal lands is directly related to tribal capacity for pollution prevention.
Agency efforts include the following:

•      Enhancing  tribal  environmental program  capacity by conducting  multi-media  risk
       assessments

       Providing training and technical assistance for Tribal environmental managers to conduct
       their own assessments and mitigation activities, with a primary emphasis on pollution
       prevention,  to reduce children's exposure to Persistent  Bioaccumulative Toxics (PBTs),
       pesticides, lead and other toxic substances

•      Refining risk assessment guidelines pilot tested in FY 2000 by trained tribal environmental
       professionals who will conduct the work to determine the feasibility, overall effectiveness
       and affordability of the guidelines

FY 2001 Change from FY 2000 Enacted

EPM

•      (+$1,500,000) Regional Strategic Agricultural Partnerships Initiative with the agricultural
       community.  Broad stakeholder collaborations will link scientists, farmers, industry, and
       government at the local, state and federal levels. Support for farmers will include research,
       alternative practices and flexible, locally-based solutions, providing farmers with innovative
       technical and financial support systems.

*      (+$950,000) Resource increase  will expand efforts within the worker protection and
       certification and training programs to provide information about pest control options and
       educate pesticide users on reduced risk pesticides and alternative pest control methods, such
       as the Pesticide Environmental Stewardship Program and Integrated Pest Management.

•      (+$ 1,212,200) Increase workforce cost of living.

*      (-$687,300) Includes a reduction in lower priority activities dealing with special review,
       minor use, and the registration of conventional pesticides, in order to fund higher priority
       program activities like the registration of safer pesticides and the reassessment of food
       tolerances.
                                         FV-20

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        (+$250,000) Expansion of urban pesticide misuse activities in FY 2001 to include efforts to
        prevent the misuse of household pesticides.

        (-$300,000) Decrease inFY 2000 Congressional Add-ons for wood preservatives and Design
        for the Environment not carried forward in FY 2001.

        (+$838,200) Realignment of funding for Antimicrobials Registrations and Registrations.
Annual Performance Goals and Performance Measures

Preventing Harmful Pesticides Exposure

In 2001     Protect homes, communities, and workplaces from harmful exposure to pesticides and
            related pollutants through improved cultural practices and enhanced public education,
            resulting in a reduction (to be determined) in the incidences of pesticide poisonings reported
            nationwide.

In 2000     Protect homes, communities, and workplaces from harmful exposure to pesticides and
            related pollutants through improved cultural practices and enhanced public education,
            resulting in a reduction (to be determined) in the incidence of pesticide poisonings reported
            nationwide.

In 1999     The Agency made progress through unproved agricultural practices and enhanced public
            education. The Agency concentrated on assessment of pesticide safety standards; education
            efforts targeted at workers and health care providers; and continued development of the
            pesticide environmental stewardship program.
Performance Measures:
Environmental Stewardship Strategies
FY 1999
Actuals

69
FY 2000
Estimate
FY2001
Request
71% (cum)     73% (cum)  Complete
Labor population will be adequately trained (cumulative) 48%

% pesticides with high leaching and persistence
potential managed to protect groundwater              0

By the end of FY 2001, further refine the baseline for
measuring pesticide poisonings and a pilot for measuring
progress in reducing pesticide poisonings.
               50%
               10%
                56%
               20%
           Trained
           Percentage
                               Baseline    Measure
Baseline:    Develop and assess more informative incident measures, stratifying incidents by type of effect or by
            toxicity category of pesticide, and expressing incident rates with demoninators such as area treated,
            pounds of pesticide used, etc. Establish a baseline for measuring pesticide poisonings within a group
            of states which are representative of national data.
                                                    IV-21

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Aggregate Environmental Risks for Agriculture Pesticides

In 2001     Develop and test indicators of aggregate
environmental risk from agricultural use of pesticides.

Performance Measures:                            FY1999        FY2000       FY2001
                                               Actuals         Estimate       Request

Pilot test indicators of aggregate aquatic environmental
risk with comprehensive U.S. agricultural use data,                                   09/30/2001  Env Indicators

Baseline:    Baseline will be established once indicators are validated.

Agriculture Partnership

In 2001     Implementation of 10-15 model agricultural partnership projects that  demonstrate and facilitate the
           adoption of farm management decisions and practices that provide growers with a "reasonable
           transition" away from the highest risk pesticides.

In 200D     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.

Performance Measures:                            FY 1999        FY2000       FY2001
                                               Actuals         Estimate       Request

Model agricultural partnership pilot projects                           10-15          10-15 Addit. Pilots

Baseline:    Baseline is the number of partners identified in 1999.

Verification and Validation, of Performance Measures

Performance Measure: Labor Population will be adequately trained

Performance Database; Aggregation of training figures from state cooperative extension services
(SCES) and voluntary worker protection training verification

Data Source:   State cooperative extension services and Worker Protection  program,   SCES
represents the education and training arm of state Agriculture Departments which extend programs
to counties.

QA/QC Procedures: Training records (maintained at state or county level)

Data Quality Review:  N/A

Data Limitations: Dependent on accurate record keeping at state or county level

New/Improved Data or Systems:  None


                                             IV-22

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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 (USD A)
provides added impetus to the implementation of the Certification and Training program. States also
provide essential activities in developing and implementing the Endangered Species, Groundwater,
and  Worker  Protection programs.   States are involved  in numerous  special projects  and
investigations, including emergency response efforts. The Regions provide technical guidance and
assistance to the states and tribes in the implementation of all pesticide program activities.

      EPA uses a range of outreach and coordination approaches for pesticide users, for agencies
implementing various pesticide programs and projects, and for the general public. Outreach and
coordination are essential to protect workers, endangered species, and groundwater; to  provide
training of pesticide applicators;  to  promote  integrated pest management and environmental
stewardship; and to support compliance through EPA's regional programs and those of the states and
tribes.

      In addition to the training that EPA provides to farm workers and restricted use pesticide
applicators, EPA works with the state Cooperative Extension Services designing and providing
specialized training for various groups (e.g., training to private applicators on the proper use of
personal protective equipment and application equipment calibration, how to handle spill and injury
situations, farm family safety, how to prevent drift, and pesticide  and container disposal). Other
specialized training is provided to public works employees on grounds maintenance, to pesticide
control operators on proper insect identification, and on weed control for agribusiness.
Statutory Authorities

Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)

Federal Food, Drug and Cosmetic Act (FFDCA)

Food Quality Protection Act (FQPA) of 1996

Clean Water Act
                                         IV-23

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                           Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

    Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
                                      Ecosystems
Objective # 2: Reduce Lead Poisoning

      By 2005, the number of young children with high levels of lead in their blood will be
significantly reduced from the early 1990's.

                                  Resource Summary
                                  (Dollars in thousands)

Reduce Lead Poisoning
Environmental Program & Management
State and Tribal Assistance Grants
Total Workyears

-
FY 1999 FY 2000
Enacted Enacted
$30,722.7 $27,390.6
$17,010.5 $13,678.4
$13,712.2 $13,712.2
113.2 98.1
Key Programs
(Dollars in thousands)
FY1999
Enacted
FY2001
Request
$28,213.9
$14,501.7
$13,712.2
95.3

FY2000
Enacted
FY2001Req.v.
FY 2000 Ena.
S823.3
$823.3
$0.0
(2.8)

FY2001
Request
Lead Risk Reduction Program

Grants to States for Lead Risk Reduction

Administrative Services
$16,911.3

$13,712.2

    $0.0
$12,807.1

$13,712.2

   $75.1
$13,573.2

$13,712.2

   $77.3
FY 2001 Request

Lead Risk Reduction Program
                                         IV-24

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       During 2001, EPA will implement the Lead Abatement Program in all fifty states through
EPA-approved state, territorial or tribal programs or, in some cases, through direct implementation
by the Agency.  In  the lead regulatory program, EPA will promulgate  four major  rules:  1)
establishing health-based standards for lead in paint, soil and dust; 2)setting standards for training
and certification for lead-based paint abatement activities in bridges and superstructures, and 3)
renovation and remodeling activities; and 4) establishing new disposal standards for lead-based paint
debris.  EPA has been working with other Federal Agencies including HHS, HUD, DOD, DOE
CPSC, and DOJ on developing a Federal Strategy to eliminate lead poisoning under the auspices of
the President's Task Force on Environmental Health and Safety Risks to Children. These activities
will make significant contributions to the objective of reducing the blood lead levels of our nation's
most vulnerable children.

       Lead affects virtually every system of the human body. Exposure to high doses of lead can
cause coma, convulsions, and even death. Exposure to low levels of lead may cause harm gradually.

       While potentially harmful to individuals of all ages, lead exposure is especially harmful to
children. Their rapidly developing nervous systems are particularly sensitive to the effects of lead.
In addition, children absorb a greater portion of lead than adults. Excessive exposure to lead in
children may  cause  learning disabilities,  lower intelligence, behavioral  problems,  growth
impairment, permanent hearing and visual impairment, and other damage to the brain and nervous
system.

       The concentration of lead in a child's blood is typically used as an index of lead exposure.
Recent studies have identified previously unrecognized effects of exposure to lead at lower levels
and there has been increasing concern about blood-lead levels once thought to be safe. Since 1975,
the Centers for Disease Control and Prevention (CDC) have 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).

       Ingestion of leadrcontaminated 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. Dust is contaminated by
lead when: lead-based paint deteriorates; lead-based paint is disturbed in the course of renovation,
repair, or abatement activity; or lead is tracked into, blown into, or otherwise enters the home from
soil in the yard or other external  sources (e.g., workplace).  Soil contaminated with lead from
deterioration of exterior lead-based paint, industrial emissions, and/or deposition of lead  from past
uses of leaded gasoline may be ingested directly or contribute to indoor levels of lead-contaminated
dust when tracked into the home. Children may also be exposed to lead through ingesting lead-based
paint chips from flaking walls, windows, and doors or from chewing on surfaces covered with lead-
based paint. Other sources of lead exposure include, but are not limited to, lead-contaminated food
and drinking water and occupational exposure to dust and airborne lead particles.

       Considerable progress has been made hi reducing environmental lead levels. The Federal
government has taken steps to eliminate sources of lead including phasing-out leaded gasoline by

                                          IV-25

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EPA and banning of the production and sale of lead-based paint for residential use in 1978 by the
Consumer Product Safety Commission (CPSC). 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.

      Consistent with these improvements, the percentage of children with elevated blood-lead
levels has declined over the last 20 years. The National Health and Nutrition Examination Survey
(NHANES) conducted by the National Center for Health Statistics indicates that over the past two
decades the average blood-lead level in children has decreased from 12.8 micrograms/deciliters
(ug/dl) to 2.8 ug/dl. According to NHANES III Phase 2, completed in 1994, approximately 900,000
U.S. children under six had blood-lead levels equal to or exceeding the 10 ug/dl.

      Lead exposure effects children across all socioeconomic  strata and in all regions of the
country. Children in poor inner-city families, however, are disproportionately affected because lead-
based paint hazards are more prevalent  in older  housing and the overall ambient level of
environmental lead tends to be higher in inner cities. Studies by the Centers for Disease Control
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 1 million.

      According to EP A's report on the HUD National Survey of Lead-Based paint in Housing, 83
percent of privately-owned, occupied homes built before 1980, or 64.4 million homes, contain some
lead-based paint. The likelihood, extent, and concentration of lead-based paint vary with the age of
the building. Eighty-eight percent of privately-owned, occupied housing units constructed before
1940,92 percent of units constructed between 1940 and 1959, and 76 percent of units constructed
between 1960 and 1979 contain some lead-based paint. Over 12million (or 19 percent) of these pre-
1980 homes with some lead-based paint have children aged 7 years or younger in residence. (The
HUD National Survey presents results for children aged 7 years or younger.  Title X, which was
enacted after the survey was conducted, focuses upon children younger than 6 years.

      EPA, under the 1992 Residential Lead-Based Paint Hazard Reduction Act (Title X), assists
and guides federal activities aimed at reducing the exposure of children in homes with lead-based
paint. Other Federal agencies, such as the Departments of Housing and Urban Development (HUD)
and Health and Human Services  (HHS), via the National Institute for Occupational Safety and
Health and the Centers for  Disease Control and Prevention, also play important roles. In the past
six years, EPA  has made great  strides in protecting children from lead poisoning through a
combmationofrulemaking, education, research, and partnerships. EPAhaspromulgatedregulations
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),
standards identifying lead hazards in paint, dust and soil, and standards for the disposal of lead
painted debris. The Agency has also recently proposed rules on identifying hazardous levels of lead
in paint, soil and dust. The public education programs and tools developed include a national
clearinghouse to provide the public with information on lead; grants to states and tribes to establish

                                         JV-26

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accreditation; certification and workplace standards programs for target housing; and a recently
promulgated  rule requiring  disclosure of information about hazards during renovation and
remodeling of housing with lead-based paint.
Grants to States for Lead Risk Reduction

       By 2001, EPA will have approved those states and Tribes that intend to run Section 402
programs for lead accreditation certification, and workplace standards in target housing. All states
and Tribes, however, will not adopt the program, and we anticipate that EPA will be required to run
a Federal  lead program in 15 to 20 states and in most of the tribal lands and U.S. territories.
Federally run state programs will require additional resources.

       With implementation of the training, certification and accreditation  program by states,
territories or tribes, or in some cases by EPA, additional data will become available to help measure
progress in reducing childhood lead poisoning and elevated blood-lead levels. In the future, EPA
will be able to measure progress in reducing lead-based paint exposures through the collection of
data associated with the Lead Abatement Program.  In addition, the Agency will know how many
professionals become certified as risk assessors, inspectors, workers or supervisors. This data will
be used to measure the growth of a well-trained workforce capable of performing abatements safely
and reliably.

       Starting in 2001, a national infrastructure will be in place  to ensure that homeowners and
renters have access to qualified lead abatement professionals that are properly trained to identify and
safely reduce lead hazards in the home.
FY 2001 Change from FY 2000 Enacted

EPM

•      (+$378,200) Increase in workforce cost of living.

»      (-$228,250 -2.6 FTE) Reflects disinvestment required to meet reduced Agency FTE ceiling.

•      (+$600,000) Reflects a redirection of resources in support of EPA's direct implementation
       of lead-based certification and training requirements in States that are not adopting this
       program.
                                         IV-27

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Annual Performance Goals and Performance Measures

Lead-Based Paint Abatement Certification and Training

In 2001    Administer federal programs and oversee state implementation of programs for lead-based
           paint abatement certification and training in 50 states and on tribal lands, to reduce exposure
           to lead-based paint and ensure significant decreases in children's blood levels by 2005.

In 2000    Administer federal programs and oversee state implementation of programs for lead-based
           paint abatement certification and training in 50 states, to reduce exposure to lead-based paint
           and ensure significant decreases in children's blood levels by 2005.

la 1999    EPA continued building the lead-based paint abatement certification and accreditation
           program by approving 30 state and territory and two tribal programs. In 17 states that do
           not take on the program, EPA will run certification and accreditation.
Performance Measures:
                                                   FY 1999
                                                   Actuals
Develop state programs for the training, accreditation and
certification of lead-based paint abatement professionals.
                                                     27
FY2000
Estimate
30-35
FY2001
Request
                                                                    15-20
A Federal training, accreditation and certification program
will be established and administered in states which choose
not to seek approval from EPA to administer.             28

Develop tribal programs for training, accreditation and
certification of lead-based paint abatement professionals.                   4                6
(cum)

Baseline:    Measure is number of states in which either a Federal or state program  is operating.
            Approved   programs  will lead to additional homes abated and certified clean of lead.
            Baseline for number of abatements and certified professionals will be established in 2000.
            Two tribal programs were approved in FY 1999.

Lead Regulatory Standards

In 2001     Prepare final rales for disposal of lead-based paint debris and establish standards regarding
            hazardous levels of lead in paint, dust and soil.

In 2000     Prepare final rules for disposal of lead-based paint debris and establish standards regarding
            hazardous levels of lead in paint, dust and soil.

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.
            States
                            Federal
                                                                                               TribJProg
                                                 IV-28

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Performance Measures:
FY1999
Actuals
FY 2000
Estimate
FY 2001
Request
Lead Debris Disposal Rule

Lead Hazard Standards Rule - develop final
Comments
Comments
Comments
Comments
1 Final
1 Final
Baseline:   Regulations and standards, where none previously existed, will promote safer homes and
           workplaces, disposal rule reduces costs of lead paint abatement. Hazard standards set
           consistent guidelines for lead paint abatement

Training, Accreditation and Certification for Lead Paint

In 2001     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 2000     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 1999     Development continued training, accreditation and certification rules:  1) renovation and
           remodeling activities and 2) deleaving on bridges and structures. When these rules are
           promulgated, a full set of national standards for safe, effective reduction of lead-based paint
           hazards will be place.
Performance Measures:
Lead Renovation Information Rule

Develop proposed rules for lead paint abatement/
renovation & remodeling and bldg./super. rule
FY1999
Actuals

Final
FY2000
Estimate
FY2001
Request
2 Proposed      2 Proposed
               2 Final
Rule
Rule
                          Rule
           Rules
Baseline:   Rule development initiated in 1998;  no consistent standard for abating lead paint for
           renovation or buildings/superstructures existed prior to Title X.

Coordination with Other Agencies

       The success of EPA's lead program depends in large part on coordination with other Federal
agencies, states and Indian tribes. In 2001, EPA will promulgate two rales which will require close
coordination with HHS, HUD and the Occupational Safety and Health Administration (OSHA).
EPA will also work closely with state and Federally recognized Indian tribes to ensure that  1)
authorized state and tribal programs continue to comply with requirements established under the
Toxic Substances Control Act (TSCA); and 2) the ongoing Federal target accreditation housing
certification and trainingprogramfor abatementcontractors continues to be administered effectively.
In addition,  EPA has been working with HHS, HUD, DOD, DOE, CPSC, and DOJ to develop a
Federal srategy to eliminate lead poisoning under the auspices of the President's Task Force on
Environmental Health and Safety Risks to Children.
                                              IV-29

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Statutory Authorities

Toxic Substances Control Act (TSCA) section 4, 5, 6,8, 12(b) and 13 (15 U.S.C. 2603-5, 2607,
261 land 2612)

Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) section^ 3,4,5,6,11,18,24, and 25
(7 U.S.C. 136a, 136a-l, 136c, 136d, 136i, 136p, 136v, and 136w)
                                       IV-30

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

    Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
                                       Ecosystems
Objective # 3: Safe Handling and Use of Commercial Chemicals and Microorganisms

      By  2005,  of the approximately 2,000  chemicals  and  40  genetically  engineered
microorganisms  expected to enter commerce each year,  we  will significantly increase  the
introduction by  industry of safer  or "greener" chemicals which will decrease the regulatory
management by EPA.
                                   Resource Summary
                                  (Dollars in thousands)
                                        FY 1999
                                        Enacted
           FY2000
           Enacted
          FY 2001     FY 2001 Req. v.
           Req uest     FY 2000 Ena.
Safe Handling and Use of Commercial Chemicals
and Microorganisms

   Environmental Program & Management

   Science & Technology

       Total Workyears
842,868.2
866,866.8
$31,509.1      $50,216.7

$11,359.1      $16,650.1

   340.9         435.7
$70,983.3
$4,116.5
             $52,754.0      $2,537.3

             $18,229.3      $1,579.2

                428.7         (7.0)
                                     Key Programs
                                  (Dollars in thousands)

Endocrine Disrupter Screening Program
New Chemical Review
Existing Chemical Data, Screening, Testing and Management
National Program chemicals: PCBs, Asbestos, Fibers.and Dioxin
FY1999
Enacted
$1,308.5
$14,659.5
$14,225.3
$3,268.3
FY2000
Enacted
$5,444.5
$13,261.4
$20,394.5
$5,753.6
FY2001
Request
$3,890.0
$13,697.6
$24,412.4
$5,648.5
                                         rv-31

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Rent, Utilities and Security

Administrative Services
                                                         $0.0

                                                         $0,0
  $0.0

$903.2
$4,189.7

 $924.9
FY 2001 Request

       This objective includes work in four broad program areas, including existing chemicals
(chemicals in commerce), new chemicals (chemicals in the process of commercialization), national
program chemicals (including mercury, fibers, dioxin,  and PCB's), and the endocrine disrupter
screening and testing program. These programs are pivotal to reducing current and future risk by
promoting the design, development, and application of safer chemicals as well as safer industrial
processes and technologies. The major program focus in FY 2001 is the Chemical Right-to-Know
(CRTK) Initiative. Currently there is little information available on the potential hazards of 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 testing on
these chemicals is made publicly available.

New Chemicals Program
  Number of TSCA PMN's, TSCA Control Measures and Green Chemistry Award Nominations
                             1990-1998
                                                      Control Measures
                                                      Green Chemiitty
                                                                        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  review
                                                                  shows    that   an
                                                                  unreasonable  risk may
                                                                  be posed to people or the
                                                                  environment,  control
                                                                  measures  are put  in
                                                                  place  to  ensure   the
                                                                  chemical's safety in the
 <	—	marketplace.     Since
1979, EPA has reviewed more than 33,000 premanufacture notices (PMN) and taken actions to
control risks for about 10% of these chemicals and microorganisms. As part of its review  of new
chemical substances,  the Agency has developed an  array of innovative,  efficient screening
                             Year
                                         IV-32

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  Current Hazard Data Availability
      forU.S.HPV Chemicals
          FottB.ta Set
mechanisms.  A number of these tools
have been made available to industry to
assist  in  the   development   and
improvements of safer chemicals.

       The Agency fosters the production
of safer chemicals in a variety of ways,
through regulatory intervention, through
voluntary programs, and through outreach
and  technical assistance.  Looking  at
commercial  chemicals,  EPA  sees
tremendous opportunities for increasing the introduction and use of safer or "greener" chemicals as
another way to build on the success of the New Chemicals program. Safer or "greener" chemicals
and processes are less toxic, result in lower exposure, are more energy efficient, generate less (or less
toxic) waste, or have other similar attributes. The more such chemicals are available to replace
riskier chemicals currently in use, the greater will be the opportunity to achieve safer workplaces and
communities.

       Green Chemistry Challenge Awards are made annually to the top  entries for new safer
chemicals, safer manufacturing processes and alternative solvents. As part of a new chemical review
for commercial chemicals in the process of commercialization, the Agency routinely works with
industry to share any options and suggestions it may have on process improvements, or to produce
new chemicals more safely. The New Chemicals Program also examines new biotechnology
products to  ensure that potential risks have been evaluated and that adequate testing has been
conducted before they are released into the environment In many cases, biotechnology products are
safer substitutes or may contribute to source reduction. Recent regulatory changes have lead to an
increased rate of new biotechnology chemicals submitted for review. Other outreach and technical
assistance to encourage safer chemicals and chemical production and use include green chemistry
and  green engineering textbooks  and other publications, a reference compendium, laboratory
manuals, symposia and. actual course work materials, all developed in partnership with  industry,
professional organizations and universities.

Existing Chemicals Program

       A crucial element of EPA's approach to promoting industry's introduction of safer chemicals
and processes is to fulfill the mandate under TSCA to identify and  control unreasonable risks
associated with chemicals which are already in commerce. The identification of existing chemicals
that pose risks provides additional incentives for  industry to look for safer new chemicals or
processes. Chemical information, especially data on exposures and health and environmental effects,
is essential for screening, assessing and managing chemical risks.  In  dealing with the more than
75,000 chemicals currently in commerce, EPA has worked  in partnership  with other Federal
agencies, industry, and other customers, to develop both traditional regulatory and innovative non-
regulatory approaches to control unreasonable risks.  Today, risk management controls are already
IV-33

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in place or planned for many chemicals whose risks are well-characterized, such as asbestos and
poly chlorinated biphenyls (PCBs). In 2001, the Agency will expand the range of existing chemicals
it will screen, as part of the Chemical Right-to-Know Initiative. The Agency will continue working
with other countries in the Organization for Economic Cooperation and Development's (OECD's)
Existing Chemicals Program by working with U.S. industry to nominate existing high production
volume chemicals for sponsorship in the OECD.

Chemical Right-to-Know Initiative
      This  initiative will focus on  the 2,800 highest production volume  (HPV)  chemicals
manufactured in or imported (in quantities of at least one million pounds) to the U.S. We have little
hazard information in the public domain for many of these chemicals that we use daily. Only 7
percent of the 2,800 have a fall set of basic information on health and environmental effects. Only
25 percent of consumer chemicals have a full set of basic information.

      Without mis information, we may not be able to effectively identify and evaluate the human
health and environmental risks posed by these chemicals. In addition, relatively little is known about
the unique impact on children's health of chemicals that are widely used in children's products or
otherwise have high potential for exposure to children. Similarly, relatively little is known about
"PBT's"-the class of chemicals that are the most persistent, bioaccumulative, and toxic.  PBT's are
toxic chemicals that do not degrade over time in the environment, and build up in plant and animal
                                                 tissue.
     211 Companies O Consortia j
     Voluntarily Ccronitted    j
     ! To Sponsor HPV Ohemicais j
           HPV Challenge Program                  Through  the  Chemical-Right-to-
        2800 HPV Chemcds Need Test Data       Know Initiative, basic screening-quality
                  (data as cf 11/30/99)                  information for all 2,800 High Production
                                                 Volume chemicals will be available to the
                                                 public  through  a  voluntary  industry
                                                 challenge program and a series of test rules
                                                 for those data not obtained through the
                                                 voluntary program. The resulting hazard
                                                 data will be broadly disseminated to the
                                                 public  in   an  easy-to-use  format
                                                 Chemicals  that   children   are
                                                 disproportionately exposed to will also be
                                                 subject to  additional  testing, under a
                                                 parallel voluntary children's health testing
                                                 initiative that will  be launched in 2000.
Much of the focus of the Agency in FY 2001 will be on small groups (or categories) comprised of
some of the 2,800 High Production Volume chemicals.  Such categories of chemicals can be
considered together because of their similar structure or lexicological properties, and are examined
as a group. The Agency will be actively engaged in assessing the validity of such categories of
chemicals, and allowing the public to access the hazard data on these chemicals as the data are
                               I Commitments
                               From Industry  ..
                               ToTestim  •
                               HPV Chemicals!
                                         IV-34

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obtained from industry.  In addition, EPA will amend its Inventory Update Rule in FY 2001 to
develop a Chemical Use Inventory (GUI) System as another tool to aid in carrying out risk reduction
strategies. Use information will allow the Agency to identify chemical exposure pathways and
potential unsafe uses, better assess risks associated with exposures, and identify household
chemicals.

      The underlying need for the Chemical Right-to-Know Initiative  is the lack of critical
toxicological and environmental effects information on HPV chemicals already prevalent in the
marketplace. This Initiative will help prioritize EPA's chemical risk assessment and management
activities and increase the amount of information on chemical exposures, hazards and risks that EPA
can provide to the public. Communities will be empowered with this new information to take action
to reduce their  potential risks, complementing Agency efforts.   Further, information on toxic
chemicals will  be  made available to state and  local governments to  help them conduct risk
assessment and management activities.

National Program Chemicals

      Some 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 are important to reducing exposure of the general population and also
sensitive subpopulations.  Risk reduction efforts on  these chemicals will continue to meet the
mandates under TSCA and fulfill the commitments made in domestic and international agreements.

      In 2001, 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. Recent rulemakings have provided industry with the opportunity to propose alternative
risk-based PCB cleanups, which the Agency will review and determine whether  the proposal is
accepted. 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 improved risk reduction for mercury, and for certain industrial fibers that pose risks
in the workplace.  Outreach and technical assistance will continue in the asbestos program for
schools, in coordination with the Occupational Safety and Health Administration and the states.

      EPA is committed to developing an Agency-wide dioxin strategy that would respond to new
scientific findings concerning the risk of dioxin and address dioxin risk management in a more
comprehensive  cross-media approach. EPA will continue efforts, on reducing dioxin exposure,
focusing on identifying and quantifying the link between dioxin sources and the general population
exposure.  Gaining this understanding is central to the successful implementation of an effective
dioxin strategy.
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Endocrine Disrupter Program

      EPA  established the Endocrine Disrupter Screening  and Testing Advisory Committee
(EDSTAC), to provide advice and counsel to the Agency on a strategy to screen and test chemicals
and pesticides that may cause endocrine disruption in humans, fish, and wildlife.  EDSTAC's
recommendations were published in 1998. During 1999, EPA began work on two major activities
to implement the screening and testing program: the standardization and validation of mammalian
screening assays and development of the priority setting database. Work will continue in both of
these areas in FY 2000. EPA will complete work on the priority setting data base in FY 2000 and
will complete validation of the mammalian Tier 1 screens in 2001. EPA will require screening
chemicals in commerce for endocrine disrupting potential in FY 2002. It is expected that by 2005,
all high production volume chemicals will have been screened for endocrine disrupting potential and
testing will have been initiated on some of the resulting  priority chemicals using the methods
validated by EPA.

      Research

      There are over 20,000 pesticide products containing 620 active ingredients on the market.
Each year, 1 billion pounds of active ingredients in conventional pesticides  are applied in the United
States. There are over 80,000 existing chemicals on the Toxic  Substances Control Act (TSCA)
inventory and each year an additional 2,000 chemicals are added. Release of these chemicals into
the environment through agricultural and nonagricultural application and other means poses serious
risks to both human health and ecosystems (e.g., plant and wildlife). To reduce human health and
ecological risks in communities, homes, work places and ecosystems associated with release of
pesticides and other toxic chemicals, research is needed to develop/improve methods to evaluate
hazard on human health endpoints, models to improve the biological basis for human health risk
assessment, and methods  to identify ecological hazards, predict ecological risk, and characterize
environmental stressor interactions.

      Test methods developed under this research program will be incorporated into test guidelines
under which manufacturers will be required to submit data to the Agency on pesticides in accordance
with the Fungicide, Insecticide, and Rodenticide Act (FIFRA) and toxic substances in accordance
with TSCA.

      Human Health Research

      Humans are exposed to thousands of chemicals either singly or in various combinations every
day through the air, drinking water, food, and dust. The goal of the health effects research program
is to develop and validate methods to detect, characterize and quantify adverse human health effects
that result from exposure to pesticides and other toxic substances; develop and validate models to
predict the human health effects of exposure to pesticides and  other toxic substances; and provide
data on the health effects of selected pesticides and other toxic  chemicals, alone or in combination.
                                         IV-36

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       In F Y 2001, health effects research will continue to focus on development of mechanistically-
based predictive models for human health risk assessment, such as structure-activity-relationship
models to help determine testing needs under Section 5 of TSCA, which addresses new chemicals.
Research will also be conducted to address the needs for methods to evaluate the special sensitivities
of certain subpopulations, such as children, based on age, genetic factors and health status. The
methods will be used to evaluate endpoints of toxicity that are qualitatively different from those of
concern for the general population.

       Exposure research will support the Agriculture Health (AgHealth) Study in FY 2001. The
Agency will cooperate with NCI, NIEHS, and NIOSH in studying the health of men and women in
agriculture.  The goal of EPA's involvement is to evaluate how accurately the study questionnaire
classifies pesticide application activities and enables the prediction of applicator exposure and dose.
The study will allow comparisons between different metrics for estimating exposure and dose,
identify and quantify key exposure factors, determine if there is an association between pesticide
application and biomarker levels in family members, evaluate simple cost-effective methods for
other pesticide exposure studies, and provide recommendations that may lead to reduced pesticide
exposures.

       The information developed from application of methods developed under this research
program will significantly increase understanding of the impacts of specific classes of pesticides and
toxic substances on human health. The Agency will incorporate these methods into its collection
of testing guidelines under which manufacturers will be required to submit data to the Agency on
pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and toxic
substances under the Toxic Substances Control Act (TSCA).

       Ecological Research

       Over the long term, ecosystems degradation poses one of the most serious risks to human
health and economic sustainability. Our Nation's ecosystems provide valuable renewable resources
such as food, fiber, water storage, and wood. Stresses to the environment can impact these resources
and other critical self-purifying environmental processes.  Understanding the effects of exposures
to environmental stressors  and  the uncertainties surrounding risk  associated with our current
definitions of stressors oil our environment is an important long-term research goal. Ecosystems
protection remains a high priority area due to the need for better understanding of environmental
stressors and their impacts on the health and sustainability of ecosystems.  The mechanisms and
consequences of changes in the biological, chemical and physical attributes  of ecosystems due to
stressors are poorly understood and represent significant challenges to the research community.

       In FY 2001, the Agency will continue to support research to improve our understanding of
ecosystem stressors.  Ecosystem effects efforts will continue to focus on: 1) developing and
validating predictive models (e.g., biologically-baseddose-response, structure-activity-relationship)
to identify  and characterize ecological hazard and risk, 2) developing  hazard identification
techniques for numerous ecological health end points for various wildlife species, and 3) evaluating

                                         IV-37

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data on the direct stressor effects  of toxic chemicals,  including pesticides, on experimental
ecosystems, including  wildlife species,  and on  interactions  of such exposures with  other
anthropogenic and/or natural stressors. This program is consistent with the Agency Strategic Plan
for research.

      In addition, risk assessment research will continue to develop the tools, methodology, and
data to conduct probabilistic assessments  of ecological risk from exposure to pesticides, which
includes development of user friendly models that link distribution of exposure to distribution of
toxicity to estimate the magnitude and probability of effects. Also included is model validation and
sensitivity analyses of the model to define the areas of research with the best likelihood of reducing
uncertainty in model predictions.

      This research program is also supported through the Agency's Postdoctoral Initiative. The
FY 2001 request continues the third year of the effort to enhance our intramural research program
by supporting 3.0 additional postdoctoral positions under this objective.  This enhancement
continues to build upon the positive response by the academic community to EPA's announcement
of 50 postdoctoral positions for FY 1999.
FY 2001 Change from FY 2000 Enacted

EPM

•     (-$845,390; -9.1FTE) Reflects disinvestment required to meet reduced Agency FTE ceiling.

      (+$827,3 00) Increase in workforce cost of living.

      (+$3,154,000) Reflects investment in Chemical Right-to-Know Initiative in response to
      substantially  greater  voluntary participation by industry  in High Production Volume
      Challenge. Greater than expected submission of chemical  test plans and results requires
      additional resources for data management, QA/QC, analysis, and public communication.
      Investment also supports development of non-animal test procedures.

•     (+$282,400) Reflects investment  to help industry use EPA tools to assess risks of new
      chemicals prior to submission of Pre-Manufacture Notices  (PMN's), saving industry and
      EPA resources in administration of new chemicals review function.

•     (+$500,000) Reflects investment to support collection and management of TSCA Inventory
      Update data, providing exposure information needed to augment hazard data (being obtained
      via CRTK Initiative) in assessing risks of toxic chemicals in commerce.

•     (-$2,019,600)  Portion of Congressional Add-on for the endocrine disruptor screening
      program not carried forward in FY 2001.

                                         IV-38

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       Research

S&T

       (+$800,000 extramural S&T) In F Y 2001, the Agency will cooperate with NCI, NIEHS, and
       NIOSH on the AgHealth Study.  The goal of EPA's involvement is to evaluate  how
       accurately the study questionnaire classifies pesticide application activities and enables the
       prediction of applicator exposure and  dose.  The study will allow comparisons between
       different metrics for estimating exposure and dose, identify and  quantify key exposure
       factors, determine if there is an association between pesticide application and biomarker
       levels  in family members, evaluate simple cost-effective  methods for  other pesticide
       exposure studies, and  provide  recommendations that may  lead to  reduced pesticide
       exposures.  This research will enhance the Agency's ability to meet its performance goal of
       developing exposure data needed to reduce community exposures to environmental stressors.

•      (+$881,500, +1.0 workyears) The R&D program, including infrastructure support costs, is
       spread  across eight  of the ten goals in the Agency's GPRA/budget structure. Based on a
       review of actual infrastructure utilization under each goal (i.e., utilization of workyears and
       associated PC&B, travel, operating expenses, and working capital fund), adjustments are
       being made across goals to  more accurately reflect expectations for use in FY 2001.
Annual Performance Goals and Performance Measures

New Chemicals and Microorganisms Review

In2001    Ensure that of the up to 1800 new chemicals and microorganisms submitted by industry each
          year, those that are introduced in commerce are safe to humans and the environment for their
          intended uses.

In 2000    Ensure that of the up to 1800 new chemicals and microorganisms submitted by industry each
          year, those that are introduced in commerce are safe to humans and the environment for their
          intended uses.

In 1999    EPA used TSCA authorities to review 1,717 premanufacture notices (PMNs) and
          exemptions.  EPA took control actions on 20 of the 31 notices involving PBTs.  EPA
          received 172 toxicity tests on over 103 chemicals.
Performance Measures:
TSCA Pre-Manufacture Notice Reviews
FY1999
Actuals

1717
FY2000
Estimate

1800
FY2001
Request

1800
Notices
Baseline:    Over 33,000 PMN's reviewed; increasing trends in number of 'greenef or safer chemicals
           reviewed.
                                           IV-39

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Green Chemistry Challenge Awards

In 2001      Continue to stimulate development of new safe ("green") chemicals and safe chemical
            processes through public recognition for outstanding achievements in this field.

In 2000      Continue to stimulate development of new safe ("green") chemicals and safe chemical
            processes through public recognition for outstanding achievements in this field.

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 hi use and
            emmissions of hazardous substances, savings in  capital investments,  reduced worker
            exposure, and improved product yields.

Performance Measures:                              FY1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Green Chemistry Challenge Award                     134             50                    Applications

In the Green Chemistry Challenge Award Program, number
of alternative feedstocks, processes, or safer products
identified/used by industry.                                                            50     Product/process

Baseline:    Cumulative number of companies, organizations  and individuals  (160)  competing  for Green
            Chemistry Award.

Testing of Chemicals in Commerce for Endocrine Disruption

In 2001      Complete standardization  and validation of mammalian screens and tests. Begin testing chemicals
            hi commerce for endocrine disrupting potential.

In 2000      Begin testing chemicals in commerce for endocrine disrupting potential.

In 1999      The Agency completed a number of key activities in FY 1999 including the High-Throughput
            Pre-Screening (HTPS) feasibility demonstrationstudy, 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        FY2000        FY2001
                                                  Actuals         Estimate        Request

Develop program to screen 5,000 chemicals for endocrine
 disruption potential                                 Developed                                  Program

Initiate Validation and Screening Protocols                             2 Initiated      2 Completed Protocols

Baseline:    Universe of 87,000 chemicals including pesticides, commodity chemicals, food additives, cosmetics
            and others. Screening and testing strategy completed in 1998.

Chemical Right-to-Know Initiative

In 2001      EPA will initiate  safety  reviews on chemicals already in commerce by obtaining data  on an
            additional 10% of the 2800 HPV chem. on the master test list, as  part of the implementation of a
                                                   IV-40

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            comprehensive strategy for screening, testing, classifying and managing the risks posed by
            commercial chemicals.

In 2000     EPA will initiate safety reviews on chemicals already in commerce by obtaining data on an
            additional 10% of the 2800 HPV chem. on the master test list, as part of the implementation of a
            comprehensive strategy for screening, testing, classifying and managing the risks posed by
            commercial chemicals.

In 1999     EPA challenged industry to take responsibility for collecting data on the effects of the chemicals they
            manufacture and over 200 companies and consortia had voluntarily committed to make public,
            before the end of 2005, basic hazard data on over 1,150 of the approx. 2,800 HPV chemicals.

Performance Measures:                               FY1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

TSCA Chemical Use Inventory Rule                    1 Proposed                      1 Final     Rule

Under Chemical Right-to-Know Initiative, secure
voluntary agreements from chemical manufacturers to test
 high production volume chemicals                                     1000                       Chemicals

Through chemical testing program, obtain test data for
high production volume chemicals on master testing list.                  50              500        Chemicals

Baseline:    Baseline is thenumber of chemicals for which voluntary testing agreements are secured or for which
            test data are obtained, from start of Chemical Right-to-Know Initiative.  Of 2,800 high volume
            productions chemicals, 7% have full data.

Address Toxic Fiber Risks

In 2001     Reduce exposure to toxic fibers by identifying fibers of concern and addressing risks through
            outreach, voluntary initiatives, and regulatory actions.

In 2000     Reduce exposure to toxic fibers by identifying fibers of concern and addressing risks through
            outreach, voluntary initiatives, and regulatory actions.

Performance Measures:                               FY 1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

Develop Asbestos Worker Protection Rule                               1 Proposed      1 Final     Rule

Baseline:    Current level of exposure of public and workers to asbestos and other  fibers of concern (e.g.
            ceramic).

Safe PCB Disposal

In 2001     Reduce the industrial burden and costs of managing the safe disposal of PCBs

In 2000     Reduce the industrial burden and costs of managing the safe disposal of PCBs

In 1999     Technical Corrections to the 1998 PCB Disposal Amendments was  issued on 6/24/99.  The PCB
            Transformer Rectification Rule will be promulgated in FY 2000. EPA published a notice in the

                                                    IV-41

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            FR in October 1999 soliciting additional information to support the Non-Liquid PCB Use
            Authorization Rule.
Performance Measures:


Revisions to PCB Disposal Amendments,
Non-liquid PCB use authorization, Transboundary
movement of PCBs

Safe Disposal of Transformers

Safe Disposal of Capacitors

Safe Disposal of Bulk Waste

Develop Final Transformer Reclassification Rule
FY 1999
Actuals
FY 2000
Estimate
                20,000

                35,000

                660,000,000

                1 Final
FY2001
Request


            Proposed


20,000      Transformers

35,000      Capacitors

660,000,000 Kg Bulk Waste

            Rule
Baseline:    Amount of PCB's that were in storage for disposal as of 1995; cost estimates baselines prepared for
            rulemakings.

Research

Research on Commercial Chemicals and Microorganism

In 2001      Develop exposure data, and health risk assessment methodologies, and control technologies to improve
            the  characterization of health risks and reduce community exposures to environmental chemical
            stressors

In 2000     Provide methods and models to evaluate the impact of environmental stressors on human health and
            ecological endpoints for use in guidelines, assessments, and strategies.

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
Actuals
FY2000
Estimate
FY2001
Request
Peer reviewed publication on the in vitro screening
methods for one-electron reactions.

Develop an animal model to assess susceptibility of the
developing immune system to environmental contaminants.

Guidance in the use of Structure Activity Relationships
 (SAR) computer technologies.
                                1
                                            model
                            guidance
Baseline:    Improve in vitro hazard identification methods for one-electron mechanisms of toxicity
            among industrial chemicals.
                                                IV-42

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Verification and Validation of Performance Measures

Performance Measure: TSCA Premanufacture Notice Reviews

Performance Database: New Chemicals MaimgementlnformationTracking System(MITS) tracks
premanufacture notices (PMNs), low volume and test market exemptions; gives number of PMNs
submitted and final disposition, whether regulated or not regulated; time span from beginning of
PMN program (1979) to present,

Data Source: As needed, industry submits requests 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:  LAN  server contains confidential business  information (CBI) support
documents on each of these chemicals;  data undergo QA/QC by EPA before being uploaded to
LAN. EPA always checks for consistency among similar chemicals in databases.
Data Quality Review: Review of industry data; EPA staff scientists and contractors perform risk
screening and assessment which could lead to regulation.

Data Limitations: None known

New/Improved Data or Systems: None planned


Coordination with Other Agencies

      EPA's chemical testing data provides critical 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.

      Mitigation of existing risk is a common interest for other federal agencies addressing issues
of asbestos and PCB's. EPA will continue to coordinate interagency strategies for assessing and
managing risks from asbestos and other fibers. Coordination on the safe PCB disposal is an area of
ongoing emphasis with the Department of Defense, and particularly the Navy, which has special
concerns regarding ship scrapping. PCB's and mercury storage and safe disposal are also important
issuesrequiring coordination with the Department of Energy as they develop alternatives and explore
better technologies for handling high-risk chemicals.
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      Research

      EPA is among six agencies within the federal government that conduct intramural human and
environmental health research (EPA and HHS (NIEHS, NCI/NIH, CDC, FDA, and ATSDR)). The
Agency conducts research in all elements of the human health risk assessment paradigm (e.g.,
exposure, effects, risk assessment, and risk management), making our 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 and 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 health is significantly increased. For example, in 2001, the
Agency will cooperate with NCI, NIEHS, and NIOSH on the AgHealth Study, which is a study of
the health of men and women in agriculture. The goal of EPA's involvement is to evaluate how
accurately the  study questionnaire classifies pesticide  application  activities and enables the
prediction of applicator exposure and dose.
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, Drag, and Cosmetic Act (FFDCA)

       Research

Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)

Toxic Substances Control Act (TSCA)

Federal Food, Drag, and Cosmetic Act (FFDCA)
                                        IV-44

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                         Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

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


Objective # 4: Healthier Indoor Air

      By 2005, fifteen million more Americans will live or work in homes, schools, or office
buildings with healthier indoor air than in 1994.

                                Resource Summary
                                (Dollars in thousands)

Healthier Indoor Air
FY1999 FY2000
Enacted Enacted
$29,095.7 $39,915.5
Environmental Program & Management $16,144.2 $27,883.6
Science & Technology
State and Tribal Assistance Grants
Total Workyears


$4,793.5 $3,873.9
$8,158.0 $8,158.0
146.2 126.7
Key Programs
(Dollars in thousands)
FY1999
Enacted
Air,State,Local and Tribal Assistance Grants: Other Air Grants $8,158.0
Indoor Air: School
Indoor Air Research
Indoor Air: Homes
Indoor Air: Buildings
$3,717.7
$2,818.7
$3,268.2
$992.0
FY2001
Request
$41,159.0
$29,729.1
$3,271.9
$8,158.0
144.0

FY2000
Enacted
$8,158.0
$4,288.4
$0.0
$1,955.1
$1,672.7
FY 2001 Req. v.
FY 2000 Ena.
$1,243.5
$1,845.5
($602.0)
$0.0
17.3

FY2001
Request
$8,158.0
$5,120.9
$0.0
$3,388.5
$1,693.4
                                      IV-45

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Administrative Services                                         $0,0         $196.8        $212.8



FY 2001 Request

Health Effects of Indoor Air Pollution

      Americans spend about 90 percent of their time indoors, where they are exposed to levels of
pollutants that are often higher than outdoors. As a result, indoor air pollution poses high risks to
human health, especially to sensitive populations, and has ranked among the top four environmental
risks in relative risk reports. 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 January 2000, the National
Academy of Sciences 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 1 in 13 school-grade children has asthma, and there is substantial evidence that indoor
      environmental exposures play a significant role in triggering asthma symptoms, and, in some
      instances, are causally linked to the development of the disease.

«     Radon is the second leading cause of lung cancer and is responsible for an estimated 15,000
      to 22,000 deaths per year (source: February 1998 BEIR VI, National Academy of Sciences).
      Nearly one out of every  15 homes is estimated to have radon concentrations above EPA
      recommended action level.

•     In schools, the General Accounting Office estimates that 9.9 million students and 570,000
      teachers and school staff suffer illnesses annually due  to poor indoor air quality.

•     Young children are exposed to Environmental Tobacco Smoke (ETS) hi approximately 27%
      of U.S. homes, increasing their risk for asthma and causing thousands of lung infections and
      other diseases.

•     Many of the pollutants of concern in combating exposure to Urban Air Toxics are also found
      indoors, and are emitted by indoor sources such as consumer products and building materials.


Indoor Environments Program Strategy
                                        IV-46

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EPA has two major strategies to meet its human health objective for indoor air quality:

•     EPA raises public awareness of actual and potential indoor air risks so that individuals can
      take steps to reduce exposure. These outreach activities provide essential information to the
      public and to professional and research communities about indoor air risks. Outreach takes
      the form of educational literature, media campaigns, hotlines, and clearinghouse operations.
      Underpinning EPA's outreach efforts is a strong commitment to  environmental justice,
      community based risk reduction, and customer service. For example, the media campaign
      undertaken in partnership with the Advertising Council seeks to educate people about asthma,
      and the role that environmental triggers found indoors can play in the worsening of the
      disease.

•     EPA uses partnerships and technology transfer to improve the way in which all types of
      buildings, including schools, homes, workplaces, and other large buildings are designed,
      operated, and maintained to bring about healthier environments indoors. To support these
      voluntary approaches, EPA incorporates the most current science available as the basis for
      recommending reduction actions.

      In order to encourage individuals, schools, and industry to take action to get risk reduction
in their  indoor environments, EPA must reach people at the local level.  To do this, EPA uses
assistance agreements and cooperative partnerships to collaborate with organizations such as the
American Academy of Pediatrics, the Asthma and Allergy Foundation of America, the National
Association of Counties, the National Association of County and City Health Officials, the National
Education Association, the American Lung Association,  the Consumer Federation of America
Foundation, the National Environmental Health Association, and the National Council of La Raza.
These partnerships position EPA to successfully reach and educate its target audience which includes
physicians who treat children with asthma, school personnel who control the environments where
children spend many hours each day, county and local environmental health officials, and susceptible
minority and disadvantaged populations.   Through  this national partner network of over 30
organizations and about 900 local field affiliates, EPA leverages the personnel, expertise, and
credibility of these groups to provide the tools to their target audiences and  to the general public to
make informed decisions about reducing risk in their indoor environment.

Indoor Environments: Children's Health Emphasis - Asthma and ETS

      EPA is very concerned about the rise of asthma incidence in children which some say has
reached epidemic proportions. The number of children with asthma has more than doubled in the
past 15 years, with about 5.5 million children affected. Annually, there are 150,000 hospitalizations
due to asthma. 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. The cost of asthma
to the U.S. economy was estimated to be $6.2 billion in 1990 (NIH  Publication No. 55-807,
September  1996) and $15 billion in 1996 (Research  in Human Capital and Development 1998:
12:35-47).

                                         IV-47

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      In 2001, EPA will continue to implement the Administration's cross-Agency initiative to
reduce childhood asthma  caused by indoor air pollution. EPA is working,  as part of the
Administration's multi-agency asthma initiative, to ensure that indoor environmental management
is an integral part of asthma care in the United States. There is no known cure for asthma at this
time. The medical community is in agreement, and it is established in national guidelines, that both
medical treatment and environmental management are needed to  effectively control asthma.
However, indoor environmental management is often not practiced and often  not part of the
prescription for managing asthma. EPA is targeting two primary audiences to help address indoor
asthma triggers nationwide — the medical community and the general public.

      First, the Agency is working to improve the medical community's awareness of and attention
to  indoor asthma triggers  and their role in triggering asthma attacks  in  asthmatics.  EPA is
coordinating with HHS to  convene a series of conferences with managed care organizations to
discuss current asthma care practices and to encourage greater emphasis on avoidance of asthma
triggers as part of a comprehensive asthma treatment regimen. Work accomplished in this area in
FY 2000 will lead to a national summit of health care and managed care organizations in FY 2001
to  share  lessons learned about how to better integrate medical treatment and environmental
management.

      Second, EPA will continue, with the help of the Advertising Council, to raise the awareness
of the general public about indoor asthma triggers. Particular attention will be paid to children with
asthma and their care givers, and low income adults with asthma in a multi-tiered national media
campaign. Support  and direction will be provided to asthma  groups that educate low-income
residents about the environmental components of asthma in the home setting, and funding will
continue to increase the introduction of school-based asthma  education programs, such as the
American Lung Association's "Open Airways,"into hundredsof additional schools nationwide, with
an emphasis on reaching inner city schools with minority populations. The program teaches students
with asthma to identify and control their exposure to the asthma trigger in their environment, and
helps staff, and teachers understand the steps they can take to improve their school's asthma
management.

      EPA will expand the implementation of the "Indoor Air Quality Tools for Schools" program
to improve the environment inside schools in FY2001, to encompass several thousand additional
schools. Adoption of these low-cost/no-cost guidelines for proper operation and  maintenance of
school facilities will result hi a healthier  indoor environment for all students and staff, but will be
of particular help to children with asthma, lessening the degree to which they are exposed to indoor
asthma triggers. On an on-going basis EPA will evaluate the training materials for these school-
based projects to ensure that they effectively and efficiently address the environmental issues. In
addition, EPA will maintain a uniform tracking system to document program progress.

      EPA will collaborate with HHS, CDC, Americorps /Vista, and other community organizations
to focus on in-home asthma education as a proven and practical method of helping children and their
parents/guardians identify and reduce indoor environmental asthma triggers. The Agency will work

                                         IV-48

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with housing groups, home health educators, community groups, and building operators to design,
conduct, improve, and track efforts which substantially reduce indoor environmental triggers for
asthma in low-income housing.

      EPA will also continue work to reduce asthma and other childhood disease by implementing
programs designed to reduce the number of homes where young children are exposed to ETS. ETS
is a key causal factor for many childhood respiratory problems including 150,000-300,000 cases of
pneumonia and bronchitis each year in children under 18 months of age, as well as middle ear fluid
build-up in children.  Asthmatic children are especially at risk since ETS  exposure increases the
number of episodes and severity of symptoms for up to 1,000,000 asthmatic children. Recent studies
have suggested links between ETS, sudden infant death syndrome, and low birth weight.  The
Agency will continue its multi-media campaign on environmental tobacco smoke which targets the
parents of young children, counseling them not to expose children to smoke inside the home. EPA
will continue to work in collaboration with the CDC, states, and local organizations to develop and
make available tools and resources which motivate parents and guardians to make their homes
smoke-free. EPA will continue grant support to state and local tobacco control  programs to help
reduce the proportion of homes in which children are exposed to secondhand smoke.

Indoor Environments: Homes, Schools, and Buildings Base Programs

      EPA continues to work toward bottom line results for the Indoor Environment base programs
including implementation of the IAQ "Tools for Schools" kit and the "Open Airways" program in
elementary schools, office buildings managed with good Building Air Quality practices, home radon
tests completed, home mitigation accomplished, and new homes built with radon-resistant features.
EPA  provides assistance to the public, other governmental agencies, and non-governmental
organizations to help meet the program's objective to  reduce indoor environmental pollutants.

      Through the State Indoor Radon Grant Program, EPA provides assistance to the states for the
development and implementation of state programs to assess and mitigate radon, thereby enhancing
the effectiveness of state-and local activities for radon risk management. The grant program helps:
1) establish the basic elements of an effective Radon Program in states that have not yet done so and
support innovation and expansion in states that currently have programs in place, and 2) strengthen
the Federal/state partnership by helping states develop radon program elements and activities.

      In FY 2001, States will be determining whether to implement multimedia mitigation plans
under the Safe Drinking Water Act to address radon in indoor air. States electing to implement
multimedia propams will be working with stakeholders to develop and submit then- plans to EPA.

FY 2001 Change from FY 2000 Enacted

EPM
                                        IV-49

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S&T
       (+ $ 1,300,000) Public Information Campaign: Expand the Indoor Environments multi-media
       campaigns specifically to educate the public, and especially parents of children with asthma,
       about ways to reduce and avoid childhood asthma episodes through educating parents and
       asthmatics about the indoor environmental triggers of asthma.
       (-$1,899,900) Funding for the assessment and mitigation of me impacts of exposure to
       multiple indoor contaminants on human  health through the  Metropolitan Development
       Association of Syracuse and Central New York, a Congressional earmark, will  not be
       continued,

       (+$1,400,000) Funding is required to support program laboratories in Las Vegas, Nevada
       and Montgomery, Alabama to enhance their abilities to study the effects of ETS and factors
       contributing to asthma.
Annual Performance Goals and Performance Measures

Healthier Residential Indoor Air

In 2001     890,000 additional people will be living in healthier residential indoor environments.

In 2000     890,000 additional people will be living in healthier residential indoor environments.

In 1999     End-of-Year results are expected in December 2000.

Performance Measures:                             FY1999        FY2000       FY2001
                                               Actuals         Estimate       Request

People Living in Healthier Indoor Air                 30-Dec-2000    890,000        890,000    People

Baseline:   Performance Baseline: 1.  By 2001, increase the number of people living in homes built
           with radon resistant features to 2,980,000 from 600,000 in 1994. (cumulative) 2. By 2001,
           decrease the number of children exposed to ETS from 19,500,000 in 1994 to 17,530,000.
           (cumulative) 3, By 2001, increase the number of people living in radon mitigated homes to
           1,464,000 from 780,000 from 1994. (cumulative)

Healthier Indoor Air in Schools

In 2001     2,580,000 students, faculty and staff will experience improved indoor air quality in their
           schools.

In 2000     2,580,000 students, faculty and staff will experience improved indoor air quality in their
           schools.

In 1999     1,050,000 students,  faculty, and staff experienced improved indoor air quality in their
           schools.

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Performance Measures:                           FY 1999       FY 2000       FY 2001
                                             Actuals        Estimate       Request

Students/Staff Experiencing Improved IAQ in Schools   1,050,000      2,580,000      2,580,000   Students/Staff

Baseline:   Performance Baseline: The nation has approximately 110,000 schools with an average of
          520 students, faculty and staff occupying them.  The IAQ Tools for Schools Guidance
          implementation began in 1997, and the program's projection for 2001 is that an additional
          5000 schools will implement the guidance, (additional, not cumulative since there is not an
          established baseline for good IAQ practices in schools)
Verification and Validation of Performance Measures

Performance Measure - People Living in Radon Resistant Homes

Performance Database: Survey

Data Source: National Association of Home Builders (NAHB) Surveys

OA/QC Procedures: N/A - Data is obtained from external organizations

Data Quality Review: N/A

Data Limitations: Susceptible to external factors that may make it difficult to rely on consistent
collection and timely analysis of data.

New/Improved Data or Systems: None


Performance Measure: People Living in Radon Mitigated Homes
                      *
Performance Database: External

Data Source: Data from radon industry

OA/QC Procedures: N/A - Data is obtained from external organizations

Data Quality Review: N/A

Data Limitations: Susceptible to external factors that may make it difficult to rely on consistent
collection and timely analysis of data.

New/Improved Data or Systems: None
                                           IV-51

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Performance Measure:  Children Under 6 not Exposed to Environmental Tobacco Smoke (ETS) in
the Home

Performance Database: National Health Interview Survey

Data Source: Centers for Disease Control (CDC), NCHS

QA/QC Procedures: NA - Data is obtained from external organizations

Data Quality Review: N/A

Data Limitations:  Susceptible to external factors that may make it difficult to rely on consistent
collection and timely analysis of data.

New/Improved Data or Systems: None


Performance Measure:  Students/Staff Experiencing Improved Indoor Air Quality (IAQ) in Schools

Performance Database: IAQ Tools for Schools Database and Tracking System

Data Source: EPA

OA/OC Procedures: Internal controls used during tracking system design and data collection.

Data Quality Review: N/A

Data Limitations:  Database relies on voluntary self- reporting, mainly from school personnel.
Data are not yet sufficient to translate number of schools with good practice to actual reduction in
harmful exposure or health effects in schools.
New/Improved Data or Systems: Pilot project to examine relationship between IAQ practices and
health effects in school buildings.


Performance Measure:  People with asthma who have reduced exposure to indoor asthma triggers

Performance Database: National Health Interview Survey

Data Source: Centers for Disease Control (CDC), NCHS

OA/OC Procedures: N/A - Data is obtained from external organizations

Data Quality Review: N/A

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Data Limitations:  Susceptible to external factors that may make it difficult to rely on consistent
collection and timely analysis of data.

New/Improved Data or Systems: None

Coordination with Other Agencies

      EPA serves a unique role in programs related to safety, consumer products and schools
because of its experience and track record in raising public awareness of actual and potential indoor
air risks, in addition to past work on indoor air quality issues associated with consumer products, and
its expertise in the areas of indoor air quality in  schools.  EPA also plays  a lead role  in the
President's Task Force for Environmental Asthma Issues.

      EPA  works with  federal, state, and  local government  agencies, industry, non-profit
organizations, individuals as  well as other nations to promote more  effective  approaches to
identifying and solving indoor air quality problems. EPA works with: the Department of Health and
Human Services to develop and conduct programs aimed at reducing children's exposure to known
indoor triggers of asthma, including environmental tobacco smoke; the Department of Housing and
Urban Development on home safetyissuesespeeially those affecting children; the Consumer Product
Safety Commission  (CPSC) to identify and mitigate the  health  hazards of consumer products
designed for indoor use; the Department of Education to encourage construction of schools with
good indoor air quality; and the Department of Agriculture (USDA) to encourage USDA Extension
Agents to conduct local projects designed to reduce risks from indoor air quality.

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

Statutory Authorities

Radon Gas and Indoor Air Quality Research Act of Title IV of the Superfund Amendments and
Reauthorization Act (SARA) of 1986

Toxic Substances Control Act (TSCA) section 6 and  TSCA Titles II and 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 2001 Annual Performance Plan and Congressional Justification

    Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
                                       Ecosystems
Objective # 5: Improve Pollution Prevention Strategies, Tools, Approaches

      By 2005, reduce by 25% (from 1992 level) the quantity of toxic pollutants released, disposed
of, treated, or combusted for energy recovery. Half of this reduction will be achieved through
pollution prevention practices.

                                  Resource Summary
                                  (Dollars in thousands)
                                        FY 1999
                                        Enacted
          FY2000
          Enacted
          FY2001
           Request
        FY2001Req.v.
        FY 2000 Ena.
Improve Pollution Prevention Strategies, Tools,
Approaches

       Environmental Program & Management

       State and Tribal Assistance Grants

              Total Workyears
$22,346.6
$23,649.5
$24,505.5
$856.0
$16,347.1
$5,999.5
87.1
$17,650.0
$5,999.5
93.2
SI 8.506.0
S5.999.5
89.2
$856.0
$0.0
(4.0)
                                     Key Programs
                                  (Dollars in thousands)

Design for the Environment
Pollution Prevention Program
Pollution Prevention Incentive Grants to States
Common Sense Initiative
Administrative Services
FY1999
Enacted
$4,724.9
$9,449.5
$5,999.5
$484.6
$0.0
FY2000
Enacted
$4,741.9
$8,333.2
$5,999.5
$0.0
$31.8
FY2001
Request
$4,946.9
$8,534.4
$5,999.5
$0.0
$33.2
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Regional Management                                           0           $7.1          $7.9
FY 2001 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, it is the policy of the United
States "that pollution should be prevented or reduced at the source whenever feasible," as the
preferred approach to environmental protection.  Compared to approaches that controlled, treated,
or cleaned up pollution, P2 can often be more effective in reducing health and environmental risks
to the extent that it:

»•      reduces releases to the environment;
>      reduces the need to manage pollutants;
>      avoids shifting pollutants from one media (air, water, land) to another; and
>      protects 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, enable firms to avoid potential liability, and support quality improvement incentives hi
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 sustain P2 practices throughout industry.

FY 2001 Key Program Activities

       In FY 2001, EPA will work to achieve the pollution  prevention objective by pursuing a
coordinated set of initiatives, 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 almost any endeavor. The Agency will promote
effective pollution  prevention through the following programs and activities:

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D    Pollution Prevention Incentive Grants to States

      The States are the primary sources for businesses and communities that are seeking assistance
in identifying and applying prevention approaches, EPA has provided seed money to help states in
promoting innovation and developing state capacity. By the close of FY 2001, EPA will have
completed cooperative projects with five states  to demonstrate the feasibility and benefits of
integrating P2 into state environmental programs. Another key program for states, the Pollution
Prevention Incentives for States (PPIS) program, fosters the development of new P2 approaches by
providing grants to states in the areas of technical assistance and training, education and outreach,
regulatory integration, demonstration projects, legislative activities and awards programs,

D    Pollution Prevention Program

      (a) Pollution Prevention as Guiding Principle,  The Environmental Justice P2 Program
administers grants to low income, minority and federally recognized tribal communities to develop
innovative P2 projects and capacity building approaches to address environmental concerns. The
program was established as a response to the 1992 report, "Environmental Equity: Reducing Risk
for All Communities," which found that low income, minority and tribal communities experience
a higher incidence of environmental problems than does the general population.  The program
addresses toxics-related and other environmental concerns across all environmental media.

      (b) Sustainable Business Practices.   Businesses can often 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 strong role in
promoting business adoption of voluntary Environmental Management Systems (such as ISO 14000)
and in encouraging businesses to modify their management accounting systems to fully  and
explicitly account for environmental costs.  These strategies will improve the current business
management framework in ways that will enable companies to more easily choose prevention
practices.

      (c) Government Actions.  EPA has the lead in carrying out Executive Order 13101 and its
predecessor, Executive Order 12873, section 503.  These orders require the Federal government to
use its purchasing power - about $200 billion in goods and services each year - to create a demand
for products and services that have  a reduced impact on the environment (i.e., environmentally
preferable products, or EPPs).  The Agency finalized guidance in 1999 to help executive agencies
identify and purchase environmentally preferable products and services. In FY 2001, EPA will
expand an ongoing demonstration project to additional national standard setting organizations such
as The  American Society for Test Materials (ASTM) and Underwriters' Lab  (UL).    The
demonstration project will help to extend government experience with environmentally preferable
products to the private sector.
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      The Agency's pollution prevention specialists will continue to provide expert information
and assistance to EPA media offices (e.g., air, water) in building pollution prevention into regulatory
approaches.  In FY 2000, EPA will incorporate P2 approaches into the Industrial Combustion
Coordinated Rule and the Surface Coatings rule under the National Emissions Standards for
Hazardous Air Pollutants (NESHAP).  The experience gained from these ralemakings will facilitate
the development in FY 2001 of a P2 module for EPA's Planning your Regulation Workshop,

      (d) Safer Products. 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 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 prevent
unnecessary risks to children from possible exposure to toxic chemicals.

      (e) PBT Initiative. The Agency is concerned about persistent, bioaccumulative and toxic
(PBT) substances, such as mercury, dioxin, and  DDT,  because  these pollutants can cause
developmental and neurological defects in fetuses  and young children.  Many PBTs are also
suspected endocrine disrupters. To address continuing issues associated with PBTs, EPA launched
a cross-office, cross-media PBT initiative in FY 1999. Through this effort, the Agency seeks to
prevent, minimize and, when possible, eliminate PBTs which are harmful to both human health and
the environment.  The initiative's cross-media approach is designed to stop the transfer of PBT
pollutants across media using all of EPA's tools: regulatory, compliance assistance, enforcement,
research, voluntary actions, prevention, and international negotiations. The PBT Initiative fosters
cross-agency collaboration on activities related to priority PBTs by building on actions by individual
national program offices and regions, and by providing resources  for priority PBT  activities that
further this agency-wide effort.

      By the beginning of FY 2001, the Agency-wide PBT Strategy will be established, specific
National Action Plans for priority PBTs will be completed, and full-scale implementation of those
plans, particularly for mercury, will be underway. The second set of priority pollutants will also be
selected for the development of agency-wide National Action Plans. Critical measurement and
monitoring efforts will be in their second year, facilities will be collecting PBT chemical release data
under the new TKI rule, and submissions under TSCA for approval of new PBT chemicals for entry
into commerce will be under close scrutiny.  New activities for FY 2001 are to include:

             Implementation of Sector-based Action Plans
      »      Increased focus on regional/state implementation projects
      •      Major emphasis on dioxin
      »      The fruition of measuring, monitoring and data collection

D    Design for the Environment
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      One of the Agency's key P2 industry sector-based programs focuses on fostering cleaner
technologies and the reduction of risks to health and the environment through the adoption of safer
chemicals and workplace practices. EPA's Design for the Environment (DfE) Program works in
partnership with industry to develop comparative risk, performance, and cost information about
alternative technologies, chemicals, and processes; in order to make environmentally informed
decisions. Through this program, EPA has entered into partnerships with more than 15 industries,
including printing and graphics; textile and garment care; electronics and computers; automotive
manufacturing,  repair, and refinishing; industrial and institutional laundries;  foam furniture
manufacturing; paints and coatings; and others.  In 2001, EPA will begin a new DfE project with
formulators in the garment and textile industry (i.e., textile finishes and dyes).

      DfE partnership proj ects 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 re-design of safer chemicals, mixtures, formulas, products, and
technologies. In particular, DfE partnerships have already begun to see changes in either the use of
chemicals or workplace practices in industrial and institutional laundry product formulations, dry-
cleaning and garment care, and in the electronics industry.  DfE's partnerships in the flexographic
ink and foam furniture product industries are wrapping-up the technical aspects of these partnerships
and launching outreach activities within FY 2000/2001.

      DfE has completed comparative assessmentson over 500 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 results 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 % reduction in such quantities.

      EPA is developing programs to incorporate pollution prevention strategies into academic
training. The Design for .the Environment (DfE) Program has worked with a network of community
colleges to help these institutions build P2 principles into their curricula. Through the development
of curricula  and  training materials,  students are provided a framework of understanding  of
environmental issues to make environmentally sound decisions in their professional capacities.

      The current focus of the Green Engineering Program is also on education. Green Engineering
looks to educate engineering students to build P2 principles into the design and operation  of
industrial processes.  To this end, EPA is publishing a Green Engineering textbook  and other
educational materials. Engineering departments are awaiting the completion of Green Engineering
products to help support then- reaccreditation efforts. The Accreditation Board of Engineering and
Technology (ABET) has established new environmental criteria, which engineering departments
need to meet  by 2001.
                                         IV-58

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      In 2001, the Buy Clean initiative will apply the principles of the EPP program to indoor
environmental quality, with an emphasis on its potential for reducing risk to schoolchildren from
exposure to indoor air pollutants. Concentrations of environmental chemicals can be anywhere from
several to thousands of times higher indoors than outside, and many indoor air pollutants are known
to trigger asthma episodes in children.  The initiative will begin with a focus on products used in
schools, placing priority on any products containing chemicals that could contribute to respiratory
irritation, asthma or other health effects of concern. EPA will develop procurement guidelines for
schools and create market incentives for manufacturers to make products that lead to improved
indoor environmental quality. EPA will work with one school district to develop criteria/tools for
the purchase of environmentally preferable products that will lead to an improvement in the indoor
environmental quality of schools and in student health and performance.

      The pollution prevention approaches discussed above are aimed  at providing assistance and
incentives to various sectors of society to promote new habits and new ways of doing business that
are sustainable, cost-effective and beneficial to the environment. These activities promote greater
ecological efficiency and therefore help to reduce the generation and release of production-related
waste.
FY 2001 Change from FY 2000 Enacted

EPM

•      (-$315,860; -3,4 FTE) Reflects the disinvestment required to meet the reduced Agency FTE
       ceiling, reducing assistanceprovided to industry in implementing environmental management
       systems required for ISO 14000 certification.

•      (-$181,600) Increase for workforce cost of living.

•      (+$2,000,000) Reflects an increase in support for projects, designed and run by communities,
       tribes and other local organizations, under the Environmental Justice Pollution Prevention
       program.  Projects target local P2 solutions to environmental problems, providing seed
       monies and capacity building for disadvantaged communities.

•      (+$200,000) Reflects an increase in support the Design for the Environment program,
       enabling this highly praised program to initiate a new industry sector  partnership  for
       developing clean products and production processes.

«      (+$515,600) Reflects an increase hi support for the Persistent Bioaccumulative Toxics
       (PBT's) Initiative, enabling the development of national action plans on an additional set of
       priority PBT chemicals.
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       (+$282,000) Reflects an increase in support for publicizing the economic benefits of reducing
       waste at the source.

       (-$2,150,000) Reflects completion of funding for four Congressionally-mandated projects.
Annual Performance Goals and Performance Measures

Toxic Release Inventory (TRI) Pollutants Released

In 2001      The quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or
            combusted for energy recovery, (normalized for changes in industrial production) will be
            reduced by 200 millions pounds, or 2%, from 2000 reporting levels.

In 2000      The quantity of Toxic Release Inventory (TRI) pollutants released, disposed of, treated or
            combusted for energy recovery, (normalized for changes in industrial production) will be
            reduced by 200 millions pounds, or 2%, from 1999 reporting levels.

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
                                                  Actuals         Estimate        Request

Reduction of TRI pollutants released           1.1 Billion Ibs. increase  200 Million      200 Million   Ibs.

Baseline:    Estimated 1999 reporting of 10 billion pounds released.

Managing PBT Chemicals

In 2001      Initiate further actions  pursuant to PBT Strategy and Level I PBT National Action Plans
            including a  plan to  address unique environmental health threats to Tribes  and special
            populations.

In 2000      Integrate second group of 6-10 PBT chemicals into National Action Plans for PBT chemicals

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
                                                  Actuals         Estimate        Request

Initiate risk reduction actions in accordance
with National Action Plan                           11                                        Chemicals

Integrate level II chemicals into National Action Plans.                  6-10                       Chemicals


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Number of prevention and reduction projects                            10              10         Actions

Publish final list of additional priority PBTs.                                             1  .         List

Baseline:    Baseline is 15 high priority actions initiated pursuant to PBT Strategy and National Action Plan.

Improvement of Indoor Environmental Quality in Schools

In 2001     Work with one school district to develop criteria/tools for procurement of products that will improve
            indoor environmental quality;  identify two high priority product categories and set health-based
            product criteria for use in one pilot school district.

In 2000     Work with one school district to develop criteria/tools for procurement of products that will improve
            indoor environmental quality;  identify two high priority product categories and set health-based
            product criteria for use in one pilot school district.

Performance Measures:                               FY 1999         FY2000         FY2001
                                                    Actuals          Estimate         Request

Agreement reached with school district on purchasing
criteria for two product categories.                                     1                2           Agreements

Baseline:    Improved indoor environmental quality in schools.  (Baseline to be determined  as part  of this
            project)

Safer Alternative Cleaning Technologies

In 2001     From the 1998 baseline, expand P2 practices in the garment and textile care industries by achieving
            a 35% increase in the use of safer alternative cleaning technologies.

In 2000     From the 1998 baseline, expand P2 practices in the garment and textile care industries by achieving
            a 25% increase in the use of safer alternative cleaning technologies.

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
                                                    Actuals          Estimate         Request

Percentage increase in the use of alternative cleaning
technologies by garment care industry.                  10%            25%            35%       Use-cumulative

Baseline:    In 1997, 83 million pounds perchloroethylene used; 1998 figure not yet available.  Safer cleaning
            technologies replace use of perchloroethylene.

Cleaner Products/Technologies

In 2001     Achieve a 5% increase in use of cleaner flexographic ink technologies and  cleaner (water-or
            non-solvent-based) adhesives or bonding techniques in foam furniture products.
                                                    IV-61

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In 2000     Achieve a 5% increase in use of cleaner flexographic ink technologies and cleaner (water-or
           non-solvent-based) adhesives or bonding techniques in foam furniture products.

Performance Measures:                             FY 1999        FY2000        FY2001
                                                Actuals        Estimate        Request

For inks, track size of flexographic ink industry and market
share ($ and Ibs) of cleaner inks. Baseline 1998.                       5%            10% (cum)  Use

For adhesives, track size of cleaner adhesive
industry market share.                                                            5% Increase Market Share

For eco-friendly detergents, track the number of
laundry detergent formulator industry partners.                                       8          Partners

Baseline:    Baseline usage under development.

Pollution Prevention Outreach Efforts

In 2001     Broaden outreach efforts on P2 methods to colleges, universities and tribal schools, sponsoring
           college training network and modifying curricula to better reflect tribal values

In 2000     Broaden outreach efforts on P2 methods to community colleges and tribal schools, sponsoring
           community college training network and modifying curricula to better reflect tribal values

Performance Measures:                             FY 1999        FY2000        FY2001
                                                Actuals        Estimate        Request

Number of P2/Df£ curricula (comm. coll. and tribal)
instructor workshops and training modules developed                  14             22         Ed. Tools

Adoption of Green curriculum by
chemical engineering departments.                                                 25         Departments

Baseline:    Baseline is number of workshops and curricula developed from start of project in 2000 and
           16 chemical engineering departments attended workshops in 1999.

Verification and Validation of Performance Measures

Performance Measure:  Reduction of TRI pollutants released

Performance Database: TRIM:  Toxic Release Inventory Modernization, formerly TRIS (Toxic
Release Inventory System) - contains  information on source reduction measures employed by
reporting facilities

Data Source:  Facilities  reporting  under TRI.  For example, in FY 1997, 21,490 facilities filed
71,670 TRI reports.
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QA/QC Procedures:  Automated edits and error checks during data preparation by industry
respondents; automated edits, error checks, data scrubs, corrections and normalization by EPA
during data entry

Data Quality Review:  GAO Report: Toxic Substances:  EPA Needs More Reliable Source
Reduction Data and Progress Measures (09/23/94, GAO/ RCED-94-93). Report reviewed EPA's
progress to implement source reduction reporting requirements; results of voluntary program to
reduce emissions of 17 highly toxic chemicals; and activities to disseminate source reduction
information to meet state and industry needs.

Data Limitations: Program activities that implement  requirements of PPA affect many other
sources of pollution besides TRI releasers. PPA section 6604(b) is a partial enumeration of EPA
activities under the PPA. TRI releasers are identified by regulation and are a narrower category of
facilities.  TRI release data covers only a fraction of the total releases,

New/Improved Data or Systems: EPA is developing regulations for improving reporting of source
reduction activities by TRI reporting facilities.


Coordination with Other Agencies

       This objective spans a broad range of pollution prevention activities, which  will 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 can stimulate demand
for the development of such products by industry.

       This effort includes  a   number of demonstration  projects  with  other  federal
departments/agencies, such as the General Services Administration (use of safer products for indoor
painting and cleaning), Department of Defense (use of safer paving materials for parking lots), and
Defense Logistics Agency (safer solvents). The program also works with the National Institute of
Standards and Technology, the International Standards Organization, and other groups to develop
standards for Environmental Management Systems.
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)
                                         IV-63

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Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)




Clean Air Act (CAA) section 309 (42 U.S.C. 7609)




Clean Water Act (33 U.S.C. 1251-1387)




Emergency Planning and Community Right-to-Know Act (EPCRA) (42 U.S.C. 11001-11050)




Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901-6992k)
                                      IV-64

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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

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


Objective # 6: Decrease Quantity and Toxicity of Waste

      By 2005, EPA and its partners will increase recycling and decrease the quantity andtoxicity
of waste generated.
                                Resource Summary
                               (Dollars in thousands)

Decrease Quantity and Toxicity of Waste
Environmental Program & Management
State and Tribal Assistance Grants
Total Workyears


RGRA State Grants
Waste Minimization
Source Reduction
Recycling
Common Sense Initiative
Administrative Services
FY 1999 FY 2000
Enacted Enacted
$17^61.2 $15,056.6
$14,488.2 $11,983.60
$3,073.00 $3,073,00
120.6 105.5
Key Programs
(Dollars in thousands)
FY1999
Enacted
$3,073.0
$2,413.2
$2,299.0
$4,232.9
$634.5
0
FY 2001
Request
§16,016.60
$12.943.60
$3.07300
107.3

FY2000
Enacted
$3,073.0
$1,913.3
$1,950.9
$3,639.3
$379.5
$26.7
FY 2001 Req. v.
FY 2000 Ena.
S960.0
$960.0
$0.0
1.8

FY2001
Request
$3,073.0
$1,966.5
$2,069.1
$3,880.5
$386.1
$60.7
                                      IV-65

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FY 2001 Request

      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 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 municipalities money.

      The Resource Conservation and Recovery Act (RCRA) calls for EPA to exercise national
leadership in promoting a reduction in the amount of waste generated, and improved recovery and
conservation of materials through recycling. The RCRA program emphasizes a national policy that
focuses on a hierarchy of preference for waste management options - reduce, reuse or recycle - that
cut the need for eventual storage, treatment or disposal. In  the 1990 Pollution Prevention Act,
Congress essentially codified this 'decision tree' for waste management, reaffinriing the need for
strong source reduction and recycling programs for both hazardous and municipal solid wastes.

      The activities hi this objective encompass the Agency's work to reduce toxic chemicals in
industrial hazardous waste streams, reduce the generation of municipal, hazardous and other solid
waste, and recycle hazardous and municipal solid  waste. Reducing toxic chemicals hi industrial
waste streams will result in more efficient use of natural resources, and decrease human exposure
to toxic wastes. Source reduction and recycling of municipal solid waste will divert waste from
landfills and combustors, reduce water and air pollution by conserving natural resources, and reduce
generation of global warming gases —while also conserving energy.

      In the hazardous  waste arena, the  Agency will further develop  waste minimization
partnerships with industry.  In line with the national and international priority on reducing the
presence of persistent, bioaccumulative and toxic chemicals (PBTs) hi the environment, the RCRA
program is implementing a strategy to focus reduction efforts on waste streams of most concern by
first identifying them, then working with industry and communities to find ways to reduce them.
Reducing the most hazardous chemicals will eliminate some of the risk that occurs when waste is
released into the environment through accident, mismanagement or residual emissions.

      A draft RCRA Waste Minimization PBT Chemical List was issued in November 1998
ranking chemicals according to four factors: (1)  a combined ability for chemicals to be persistent,
to accumulate in human and animal tissues (bio-accumulate)  and result in toxic effects in humans
(e.g.,  cancer) or pose other ecological problems; (2) quantities  of chemical present hi hazardous
waste and frequency of occurrence; (3) documented presence of chemical hi the environment, and
(4) whether these chemicals are of RCRA concern (e.g., hard to treat, hard to remediate, etc.).  The
Agency received public comments on the draft list, as well as the factors used to develop it. In 2000,
EPA will finalize the factors and the list as part of the larger PBT Initiative (PBTI).
                                         IV-66

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      In 2001, waste minimization efforts will maintain a two-pronged approach addressing
partnerships and technical guidance/outreach to industry. The Agency is in a multi-year partnership
with the New England states to reduce the generation of industrial municipal waste containing
mercury by working with companies and sectors that produce appliances and instruments containing
mercury. The goal of this partnership is to encourage broader use of low/no mercury technologies
in a variety of industrial sectors. In 2001, the Agency also plans to publish the first national PBT
reduction progress report based on Toxics Release Inventory (TRI) and Biennial Reporting System
(BRS).  Analysis of quality assured data in 2000 is essential to publishing a report that measures
progress of industry sectors toward the national GPRA reduction goal.  EPA will make available
technical documentation of PBT reduction successes to industries and other stakeholders via the
Internet.

      In .2001, the Agency will review existing information on hazardous waste recycling with a
goal of developing actions to increase recycling rates in areas where current recycling rates are low
or declining.

      The Agency plans to reduce burdens on small businesses and encourage hazardous waste
recycling through RCRA program improvements. These re-invention efforts will streamline RCRA
requirements for the printing, electronics, and metal finishing industries.  In 2001, the Agency will
begin work to finalize rales proposed in 2000 which streamline regulations for solvent-bearing
industrial wipes and towels, and for the recycling of lead-containing cathode ray tubes found in
many electronic products.  In 2000, the Agency will complete a final rule allowing longer storage
periods for metal finishing wastes that is expected to encourage greater recycling of these wastes by
small plating businesses. As a follow-on effort, the Agency will discuss with the metal finishing
industry and key stakeholders other potential regulatory and non-regulatory initiatives to increase
recycling and safe management of metal finishing wastes.

      In 2001, the Agency will examine potential RCRA improvements hi site-specific projects
initiated under the Project XL program, which encourages experimentation with alternative
regulatory requirements that may yield superior environmental results. Currently, there are 11  XL
Projects with RCRA components. Several  are examining alternative regulatory approaches that
should  result in increased  recycling of  hazardous  wastes,  while   maintaining appropriate
environmental protections.

       Reducing the amount and toxicity of hazardous waste has clear benefits, yet only a small
portion of the nation's total volume of waste is affected. Annual generation of municipal solid waste
(MSW) has grown steadily from 88 million to 217 million tons between 1960 and 1997. The RCRA
municipal solid waste program provides national leadership, technical assistance and outreach for
businesses, industry, and municipalities implementing source reduction and recycling systems in
their plants, facilities and communities, as  well as for states and tribes whose laws provide the
structure for these activities.  Municipal solid waste includes waste generated from residences,
commercial establishments,  institutions, and industrial non-process operations. The  program
implementsa coordinated mix of strategies to manage wastes, including source reduction (also called

                                         FV-67

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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.
                         Calculating Source Reduction for MSW
          Using Personal Consumption Expenditures (PCE) as the Driving Factor
       With the selection of consumer spending as the driving factor, the chart below uses actual
data from the 199 7 Update on MSW generation and data on consumer spending. This figure includes
these data and illustrates the 23 million tons of source reduction achieved in 1996 relative to 1990.
                         Calculation of Source Reduction in 1996
       c
      H
       m
      "O
       st
       
-------
The Table below explains the previous figure in more detail, including the main steps involved in
calculating source reduction in 1996.
                            Calculation of Source Reduction in 1996
Source Reduction Equation Components
1. Waste Stream: Actual Waste Generation (Thousands of
Tons)
2. Driving Factor: Consumer Spending (Millions of
Dollars)

3, Rate: Waste Generation Rate (Tons per Million Dollars)

4. Projected 1996 Waste Generation Using 1990
Generation Rate (Thousands of Tons)
5. Source Reduction in 1996 (Thousand of Tons)

1990
205,210

4,132,000

49,66

Not
Applicable

Not
Applicable
1996
209,660

4,690,700

44.70

232,940


23,280

      In 2001, the RCRA recycling and source reduction projects will continue to create markets
for recyclable materials collected from the waste stream to be used in the production  of new
products.   The  Agency will focus efforts  on financing  and technology opportunities  for
recycling/reuse businesses.  EPA will continue to promote waste prevention efforts by sharing its
new source reduction measurement methodology to allow the tracking of progress when a source
reduction program is initiated at the local, state, or national level and by emphasizing the use of unit
based pricing of solid waste services, the Pay as You Throw approach to financing solid waste
management.

      The Agency will promote the economic, environmental (includingclimate change),and social
benefits of natural resource conservation achieved through source reduction and recycling. The
Agency will be providing technical assistance to local government officials on ways to improve the
efficiency and cost-effectiveness of  recycling collection programs  by calling attention to  the
techniques used by some 20 record-setting community recycling programs. The Agency will share
technical information on cost effective  waste reduction programs through satellite-broadcast
workshops, training, and outreach materials that can be used by local communities and other partners
in developing effective systems for containing costs while mamtaining or improving environmental
protection. In 2001, the WasteWise program will be in tie second year of a campaign to seek federal
sector partners to promote source reduction, recycling and buy-recycled programs within federal
agencies. EPA hopes to have dozens of additional partners resulting from federal sector expansion.
Partners joining the WasteWise program set and achieve goals in three areas: preventing waste,
                                         IV-69

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 collecting recyclables, and increasing the purchase or manufacture of recycled projects. In the
 program's fifth year, Waste Wise partners reduced over 7.7 million tons.

       As a result of the successful implementation of our direct hands-on effort to promote the
 implementation of Pay as You Throw programs, in 2001 efforts will rely on providing technical
 assistance to local governments through less costly electronic means.

       The Jobs Through Recycling (JTR) program has been successful in stimulating markets for
 recycled materials through creation of new recycling and reuse business. Examples of efforts taken
 to foster the recycling market include information dissemination and exchange, and networking. In
 2001,  the  Agency  will continue to  promote financing  and technology  opportunities for
 recycling/reuse businesses through its JTR network. EPA will substantially reduce direct assistance
 grantsto support buy-recycled programs because strong, self-sustaining programs geared to industry,


        WASTE RECYCLING RATES -1960 TO 1997
75-

60-
45-
3Q ,
15 •
 Total Waste
   RECYCLED
(mil tons/year)
 6.4%            6.6

                         • •*-	        Q RW                  RECYCLED
                         * ffOmty       9-6%	
        •5.6 mty  —=	1                  1	1	1	
     1960             1970             1980            1990      '97


 Characterization of MSW in the US: 1998 Update, US EPA, Washington, DC

 business, and state and local governments have been established. Rather, the Agency will focus on
 increasing source reduction and recycling of targeted portions of the solid waste streams and work
 with partners to identify, analyze and share information.  The Agency will emphasize waste
 reduction opportunities for construction and demolition debris, food wastes, tires,  electronics
 equipment, carpet, transport packaging, and plastic beverage packaging.

       The Comprehensive Procurement Guidelines program establishes guidelines for federal and
 state purchasing to help improve the market for products made from materials recovered from the

                                       IV-70

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solid waste stream.  These guidelines, along with the Recovered Materials Advisory Notices, set
minimum recovered materials content for certain designated items. EPA will continue to develop
new Comprehensive Procurement Guidelines and will issue new guidelines biarmually as required
in Executive Order 13.101.
FY 2001 Change from FY 2000 Enacted

EPM

       (+$513,000) Increased costs associated with the workforce based on the Agency's overall
       payroll pricing.

•      (+$140,000) Increase in the Municipal Solid Waste (MSW) program will provide funds for
       developing the  MSW  characterization report and  promote  financing  and  technology
       opportunities for recycling/reuse businesses through the Jobs Through Recycling Program.
Annual Performance Goals and Performance Measures

Reducing PfiTs in Hazardous Waste Streams

In 2001     Reduce persistent, bioaceumulati¥e and toxic chemicals in hazardous waste streams by
           expanding the use of State and industry partnerships and Regional pilots.

In 2000     Issue final list on RCRA persistent, bio-accumulative and toxic (PBT) chemicals.

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:                           FY 1999        FY2000        FY2001
                                              Actuals         Estimate        Request

Issue final guidance on PBT Identification             0                                      document

 Issue final PBT list.                                             1                        list

Prepare a trends report that shows Toxic Release
 Inventory changes from 199J to 2000,                                            1          report

Baseline:   1991 Toxic Release Inventory data will be used to determine reductions.
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Municipal Solid Waste Source Reduction

In2001    Divert an additional 1% (for a cumulative total of 30% or 67 million tons) of municipal solid
          waste from land filling and combustion, and maintain  per capita generation of RCRA
          municipal solid waste at 4.3 pounds per day.

In 2000    Divert an additional 1 % (for a cumulative total of 29% or 64 million tons) of municipal solid
          waste from land filling and combustion, and maintain  per capita generation of RCRA
          municipal solid waste at 4.3 pounds per day.

In 1999    Data Unavailable

Performance Measures:                           FY1999        FY2000        FY2001
                                             Actuals        Estimate        Request

Millions of tons of municipal solid waste diverted.       not available    64            67         mlon tens

Daily per capita generation of municipal solid waste.    not available    4.3            4.3        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

Goal 4 Objective 6

Performance Measure: Millions of tons of municipal solid waste diverted; Daily per capita
generation of municipal solid waste

Performance Database: In the non-hazardous waste program, no national databases are in place
or planned.

Data Source: The baseline numbers for municipal solid waste source reduction and recycling are
developed using a materials flow methodology employing data largely from the Department of
Commerce which can be found in an EPA report titled "Characterization of Municipal Solid Waste
in the United States."

QA/QC Procedures:  Quality assurance and quality control are provided by the Department of
Commerce's internal procedures and systems. The report prepared by the Agency is then reviewed
by a number of experts for accuracy and soundness.

Data Quality Review:  The report, including the baseline numbers and current progress, is widely
accepted among experts. Since the report is produced by EPA, no reporting from outside sources
will be required.
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Data Limitations: Non-hazardous waste data limitations stem from the fact that the baseline and
annual progress numbers 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:   Since these  numbers are widely reported and accepted by
experts, no new efforts to improve the data or the methodology have been identified or are necessary.
Coordination with Other Agencies

       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's re-
invention efforts have brought a range of stakeholders together to examine alternatives in specific
industrial sectors, and several regulatory changes have followed which encourage hazardous waste
recycling.

       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/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. EPA also works with the Small Business Administration to provide
developmental and continued support to recycling businesses.

       EPA has worked with the Council on Environmental  Quality (CEQ) and the Federal
Environmental Executive (FEE)  on the White House Initiative on Recycling, involving business,
industry, non-government organizations  and all levels of government.  EPA is teaming with
numerous other federal agencies to respond to the Initiative's goal of reinvigoratedfederal leadership
for sustainable recycling.  Agencies with which EPA is working include the Departments of
Agriculture, Commerce, Education,  Energy, Health and Human Services, Interior, Justice, and
Treasury. Other agencies include the Office of Management and  Budget, USPS, CEQ, General
Services Administration and the FEE. These joint efforts are intended to increase coordination and
lend focus to federal recycling activities, to avoid duplication of effort and increase access by the
public to federal information and assistance.
Statutory Authorities

Solid Waste Disposal Act as amended by the Hazardous and Solid Waste Amendments of 1984.
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                            Environmental Protection Agency

            FY 2000 Annual Performance Plan and Congressional Justification

    Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces and
                                       Ecosystems
Objective # 7:  Assess Conditions in Indian Country

       By 2003,60% of Indian Country will be assessed for its environmental condition and Tribes
and EPA will be implementing plans to address priority issues.

                                   Resource Summary
                                  (Dollars in thousands)

                                        FY1999        FY2000       FY2001    FY2001Req.v.
	Enacted	Enacted	Request     FY 2000 Ena.
Assess Conditions in Indian Country
   Environmental Program & Management
    State and Tribal Assistance Grants
       Total Workyears
$52,155.7
$9,570.4
            $52,826.1
             $10,197.7
$64,196.3
$11,610.9
$42,585.3      $42,628.4     $52,585.4
    80.7
                84.0
    87.4
$11,370.2
 $1,413.2
                                      $9,957.0
     3.4
                                     Key Programs
                                  (Dollars in thousands)

Tribal General Assistance Grants
Administrative Services
Regional Management
FY1999
Enacted
$42,585.4
$27.1
$0.0
FY2000
Enacted
$42,628.4
$97.0
$41.4
FY2001
Request
$52,585.4
99.8
$45.9
FY 2001 Request

       Under Federal environmental statutes, the Agency has numerous responsibilities for assuring
human health and environmental protection in Indian country. Since 1984, EPA policy has been to

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work with Tribes on a govemment-to-government basis that affirms the vital trust responsibility that
EPA has with every federally-recognized Tribal government.  Under the Administrator's 1994
Action Plan for the EPA Indian Program, EPA endeavors to address Tribal environmental priorities,
ensure  compliance  with  environmental  laws,  provide  field  assistance,  assure  effective
communication with Tribes, allow flexibility in grant programs, and increase resource investments
for Tribal operations. Agency-wide EPA Tribal funding (located in Goals 1,2,3,4,5,6,7,9 and 10)
has pown from $38 million in FY 1993 to $188 million in FY 2001, an increase of 400%.

      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
in Indian country will enable EPA/Tribes to identify high priority human health and environmental
risks.   These 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.

      By the end of 2001, EPA expects to complete key reforms to the Agency's data infrastructure
to address Tribes. By the end of 2001, EPA will also complete a baseline assessment of 38% of
Indian country using existing information, EPA anticipates that existing information will provide
a sufficient basis for sound environmental planning and program implementation in some areas. In
other areas, EPA anticipates the baseline assessment will identify key data gaps for resolution. By
the end of 2000, EPA will have invested $2.1 million in these activities.

      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 programs. EPA is requesting an additional $ 10 million in 2001
(total of $52.6 million) so that 80 additional Tribes will have at least one or two persons working in
their community to build a  strong, sustainable environment for the future.  These  people perform
vital work by  assessing the status of a Tribe's environmental condition and  developing the
infrastructure for an environmental program tailored to that Tribe's needs. In addition to developing,
for example, the environmental education programs and solid waste management  plans needed in
almost every Tribal community, a key role of these personnel is to alert EPA to 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.

      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
governmerit-to-governmentrelationship 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
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through its Treatment in the Same Manner as a State (TAS) process under several environmental
statutes. See, e.g., 33 U.S.C. § 1377 & 42 U.S.C. § 760l(d).

      EPA's policy  has been  and will continue  to  be that Tribes develop the capability to
implement federal programs themselves. However, in working with Tribes, EPA has realized that
TAS does not suit the needs of all Tribes.  Some  Tribes with pollution sources and other
environmental problems may be too small to support a  fully delegated or approved environmental
programs. Other Tribes are wary of seeking TAS status because it may lead to costly litigation that
may in turn lead to a diminishment of Tribal sovereignty. As a result few Tribes have sought TAS
under EPA's various regulatory programs.  In the absence of EPA-approved Tribal programs, EPA
generally faces practical challenges hi 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.

      In accordance with the President's 1994 Memorandum and its own 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 proposing
appropriations language that would provide another tool to implement its federal programs while
removing existing legal and procedural impediments to working directly and effectively with Tribal
governments.  The proposed language would allow EPA to award cooperative agreements to
federally recognized Indian Tribes or Intertribal consortia if authorized by their tribal members to
assist the Administrator in implementing federal environmental programs for Indian Tribes. These
cooperative agreements would be made  notwithstanding the Federal Grant and Cooperative
Agreement Act requirements that federal agencies use a contract when the principal purpose of a
transaction is  to acquire services for the direct benefit or use of the United States.  Cooperative
agreements, rather than a contract under the federal acquisition regulation, are the preferred funding
mechanism, since they better reflect the government-to-government relationship. They would be
made using funds available to EPA for direct implementation of federal environmental programs on
Indian lands. These cooperative agreements would not be awarded using funds designated for State
financial assistance agreements.

      The proposed  language  would promote Tribal  participation when EPA  is  directly
implementing federal environmental programs in Indian country or for Tribes.  It would also help
Tribes build the capacity to achieve TAS status if they wish to do so. While EPA would retain final
decision-making authority andultimateresponsibilityfor all regulatory activities where EPA directly
implements federal programs, the proposed language would allow for varying degrees of Tribal
involvement hi 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.
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       FY 2001 Change from FY 2000 Enacted
\
       EPM

       •      (+4.9 FTE) These worky ears will be used for GAP grant oversight and program and technical
              assistance to Tribes as well as implementation of the baseline assessment.

       •      (+$663,200) This increase supports the aforementioned workyear increase as well as cost of
              living and other intramural increases under this objective.

       •      (+$835,000)  This increase supports  the  continuation  of  a baseline  assessment  of
              environmental conditions on tribal lands. In order to  assure that Tribes have adequate
              information with which to make environmental decisions, EPA strives toward completing
              a documented baseline assessment of environmental conditions in Indian country to enable
              EPA/Tribes to identify high priority human health and environmental risks.
       STAG
              (+$10,000,000) for the Indian General Assistance Program grants will allow Tribes to build
              the capacity to implement their own environmental programs and to develop baseline data
              by which future environmental progress can be measured.  The additional resources will
              primarily fund Tribes without an environmental presence to begin developing critically
              needed environmental infrastructure. Tribes that already have environmental presence will
              be able to develop more sustainable and comprehensive core environmental programs.
       Annual Performance Goals and Performance Measures

       Tribal Environmental Baseline/Environmental Priorities

       In 2001    Baseline environmental information will be collected by 34% of Tribes (covering 50% of
                 Indian Country).

       In 2000    16% of Tribal environmental baseline information will be collected and 12 additional tribes
                 (cumulative total of 57) will have tribal/EPA environmental agreements or identified
                 environmental priorities.

       In 1999    10% of Tribal environmental baseline information was collected and 46 additional tribes
                 have tribal/EPA environmental agreements or identified environmental priorities.

       Performance Measures:                           FY 1999       FY2000        FY2001
                                                    Actuals        Estimate        Request

       Tribal environmental baseline information collected     10            16                       %

       Tribes with Tribal/EPA environmental agreements                             ,


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or identified environmental priorities                46            12                     Tribes

Environmental assessments for Tribes (cumulative).                                193       Tribes

Baseline:   There are 580 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

Goal 4 Objective 7

Performance Measure: Number of environmental assessments for Tribes.

Performance Database:   The database is  available monitoring data and other  environmental
assessment information.  Gaps will be  identified where data does not exist to  determine the
environmental condition for a Tribe. Gaps will be identified by media and, as appropriate, EPA
program. In limited instances, data may be collected to fill key data gaps.

Data Source: Data will be collected from EPA National Data sets in Envirofacts, Regional Records
on grant programs in GICS and other data collection activities, Tribal office records on Tribal and
Federally funded data collection and other assessment activities. As needed, data also will be sought
from State records.

QA/QC Procedures: Data sources will be referenced and data will be identified as to date of data,
program or purpose of data collection, and, to the extent known, applicable QA/QC procedures that
were in place for the data collection activity.  All new data collection activity will be in accordance
with current Agency QA/QC procedures.

Data Quality Review: Reports will be compiled for each Tribe using a data collection process that
involves appropriate program staff in both file and record review. Each draft report will be subject
to review by EPA (HQ and Regional) and the applicable Tribe prior to being  issued by the
American Indian Environmental Office (AIEO).  Existing data collection began in FY 99 and will
continue through mid FY01. Reviews of draft reports that summarize existing data are expected to
be conducted throughout FYOO and FY01.

Data Limitations:  Data will be incomplete.  These reports will assess the condition of the
environment in Indian country primarily by using available  information.   Some  parts of the
environment are more thoroughly studied than others.  Therefore the assessments will be more
complete in some areas than in others. Areas where the condition is unknown will be identified.

New/Improved Data or Systems: The National program office will review and analyze the data
limitations and data gaps discovered during the development of these Tribal assessments. AIEO,
NPM' s, and Regional Offices in cooperation with the Tribes will determine the appropriate follow-
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up activities to address data inadequacies and gaps through contract resources, grant work plans and
environmental program negotiations.

Coordination with Other Agencies

The following examples describe coordination efforts that involve resources associated with this
goal, and in some cases Goals 2 and 5 as well.

Clean Water Action Plan

       With the Department of the Interior, EPA co-chairs an Inter-Agency Tribal Coordinating
Committee (ITCC) chartered by the federal Clean Water Action Plan (CWAP) Steering Committee
to help federal teams work with Tribes to implement the CWAP in Indian country.  For example,
in 1999 the ITCC worked with the CWAP Unified Watershed Assessment (UWA) action team to
sponsor four Tribal workshops to provide Tribes with federal data and technical assistance as the
Tribes prepare Unified Watershed Assessments (UWAs). More than 150 Tribal representatives
attended these workshops. In some areas, EPA Regional and Department of Agriculture/Natural
Resources Conservation Service field staff are providing additional technical assistance to Tribes
working on their UWAs. The ITCC will continue to provide guidance, assistance and support to the
CWAP steering committee and work with other CWAP action teams and Tribes to implement the
CWAP,

Domestic Policy Council

       With the Bureau of Indian Affairs, the Agency co-chairs the Subgroup on the Environment
& Natural Resources of the White House Domestic Policy Council's Working Group on American
Indians & Alaska Natives. The Subgroup has completed, distributed to all Tribes and placed on the
Internet a "Tribal Environment and Natural Resources Assistance  Handbook" that summarizes
resources/programs  available  across the federal  government to  help Tribes manage  their
envkonment/natural resources. The Subgroup is also conducting a Regional pilot project to explore
intergovernmentalproblem-solvingoptions for federal agencies and Tribes that would address Tribal
environmental and natural resources issues in a more comprehensive and timely manner than Tribal
involvement hi the late stages of an Agency' s decisionmaking via review of draft NEPA documents.
In 2000, the Subgroup intends to complete a review/revision of the existing four-Agency (EPA,
Bureau  of Indian  Affairs,  Indian  Health  Service, and Housing and Urban Development)
Memorandum of Understanding jegarding cooperation on environmental matters (see below).

EPA/BIA/IHS/HUD Memorandum of Agreement

       Under the existing Memorandum of Agreement, the Bureau of Indian Affairs and EPA
collaborate on review of National Environmental Policy Act (NEPA) documents from federal
agencies to determine whether Tribal resources are  adversely affected by the agencies' proposed
actions. EPA and BIA are beginning to work together to coordinate EPA's work with Tribes to

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develop Tribal/EPA Environmental Agreements with BIA's work with Tribes on Integrated
[Natural] Resource Management Planning.  Regional EPA Offices (for example: Regions 5 and 8)
are developing and implementing more comprehensive MOUs to coordinate federal activities
affecting/addressing Tribal public health and environmental resources.

EPA/BIA Interagencv Cooperation on Environmental Compliance

       EPA and BIA are developing a working relationship on matters of pollution prevention and
compliance assistance. For example, EPA is training BIA field staff on how to conduct their own
pollution prevention and environmental compliance audits. EPA is also assisting BIA in audits of
a number of selected BIA facilities that are likely to demonstrate environmental compliance issues
common to many similar BIA facilities.

Solid Waste Interagencv Workgroup

       EPA and a large number of Agencies including the Bureau of Indian Affairs, the Indian
Health Service, the Federal Aviation Administration, the National Oceanic and Atmospheric
Administration, and the Departments of Housing and Urban Development, Agriculture (Forest
Service and Rural Utilities Service), and Defense are working collaboratively to identify, prioritize
and close solid waste dumps in Indian country. The Group is focusing on 146 of the highest priority
sites from the Indian Health Service's 1997 Report to Congress, entitled "Open Dumps on Indian
Lands," which contains an inventory of 1,162 open dumps in Indian Country.  Additional agencies
are likely to participate as the workgroup further defines its goals and strategy.

Baseline Assessment of Environmental Conditions in Indian country

       As EPA completes review of its existing data bases for information on environmental
conditions in Indian country, the Agency has begun work with the US Geological Survey to access
water quality data not yet accessible through existing national-scale Interagency efforts. EPA will
then work with IHS to share data on water sanitation infrastructure location, condition, wastewater
discharges and drinking water quality. Finally, EPA will work with BIA and Health and Human
Service's Administration  for Native Americans to incorporate appropriate information these
Agencies may have on Tribal environments/natural resources.

Other Examples of Interagencv Coordination

       Under a two- party Interagency agreement, EPA works extensively with the Indian Health
Service to cooperatively address the drinking water and wastewater infrastructure needs of Indian
Tribes. EPA and the Department of Interior are meeting to develop training for Tribes on the roles
and responsibilities of Natural Resource Damage Trustees under Superfund authorities, with a pilot
effort planned for Tribes in the Oklahoma/Kansas/Missouri  mining  belt.  EPA is actively
participating hi the Department of Defense's Defense Environmental Restoration Task Force. EPA
worked closely with the Department of Energy, Sandia Pueblo and Isleta Pueblo to approve the first

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temporary unit, on-site cleanup of RCRA wastes in Region 6 prior to disposal in an onsite corrective
action management unit.  Sandia Lab estimates the on-site treatment and disposal will save $5
million in clean up costs.  EPA Region 1 and ATSDR are evaluating the exposure of mercury to
Tribal members in Indian country.  ATSDR is assisting the Tribes and EPA in developing a Tribal
fish consumption survey and looking at existing data (fish tissue analysis and air data) to determine
if testing of human hair, blood, or urine is warranted due to the level of mercury exposure.
Statutory Authorities

Indian Environmental General Assistance Program (GAP) Act of 1992 as amended (42 U.S.C.
4368b)
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Goal 5: Waste Management

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Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 5: Better Waste Management, Restoration of Contaminated Waste Sites,
        and Emergency Response	 V-l
       Reduce or Control Risks to Hwam Health .,	,	 V-12
       Prevent, Reduce and Respond to Releases, Spills, Accidents or Emergencies	,	 V-55

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                            Environmental Protection Agency

              2001 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,
restoring them to uses appropriate for surrounding communities, and respond to and prevent waste-
related or industrial accidents.

                                   Resource Summary
                                  (Dollars in thousands)
                                        FY1999       FY2000       FY2001     FYlOOlReq.v.
                                         Enacted	Enacted	Request    FY2000Ena.
   Goal 05  Better Waste Management,         §1,673,339,5
           Restoration of Contaminated Waste
           Sites, and Emergency Response
   Obj. 01  Reduce or Control Risks to Human     $1,511,811.5
           Health
   Obj. 02  Prevent, Reduce and Respond to        $161,528.0
           Releases, Spills, Accidents or
                  Total Workyears               4,514.0
$1,622,372.6    $1,679,847.6      $57,475.0


$1,451,859.3    SI.500.675.5      $48,816.2

 $170,513.3     SI79.I72 I       $8,658.8

    4,455.4        4.402.3         (53.1)
Background and Context

       Improper management of wastes can lead to serious health threats as a result of fires,
explosions, and contamination of air, soil, and water. Likewise, improper waste management and
disposal pose threats to those living in nearby communities and can result in costly cleanups. A
frequent result of improper hazardous and solid waste disposal is the contamination of groundwater—
the source of drinking water for nearly half of all Americans. Therefore, one of the Agency's
strategic goals is to ensure proper waste management and disposal occurs so that human health,
endangered wildlife, and vegetation and natural resources are not threatened. EPA's mission also
includes protecting human health and the environment from unacceptable risks posed by solid and
hazardous wastes as well as from the release of oil and chemicals, including radioactive waste, into
the environment. In 2001, EPA will promote safe waste storage, treatment, and disposal, cleanup
active and inactive waste disposal sites, and prevent the creation of new environmental risks.
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Means and Strategy

       EPA and its partners will continue their efforts to achieve this goal by promoting better waste
management, cleaning up contaminated waste sites, and preventing waste-related or industrial
accidents. To date, EPA and its partners have made significant progress toward achieving its two
primary objectives that address human health and the environment at thousands of Superfund,
Brownfield, Resource Conservation and Recovery Act (RCRA), underground storage tank (UST),
and oil sites.  Brought together by our common interest to protect our health, environment, and
livelihoods, EPA and its partners have established an effective structure to manage the nation's
hazardous and solid wastes.

       One of the objectives of this goal is to reduce or control the 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, Brownfield,
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.

       To accomplish its Superfund objectives, EPA works with states, tribes, and other Federal
agencies to protect human health and the environment and to restore sites to uses appropriate for the
nearby communities. Site assessment is the first step in determining whether a site meets the criteria
for placement on the National Priorities List (NPL) or for removal action to prevent, minimize or
mitigate significant threats. The Agency also provides outreach and education to the surrounding
communities  to improve their direct involvement in every  phase of the cleanup process and
understanding of potential site risk, such as risks posed by radioactive materials.

       One of Superfund's major program goals is to have responsible parties pay for and conduct
cleanups at abandoned or uncontrolled hazardous waste sites. The Superfund enforcement program
maximizes Potentially Responsible Party (PRP) participation and is committed to reforms, which
increase fairness, reduce transaction costs and promote economic redevelopment.  The Agency also
seeks to recover costs associated with a site cleanup from responsible parties when trust fund monies
have been expended.

       Brownfields are abandoned, idled, or under-used industrial and commercial properties and
are not traditional Superfund sites as they are not generally highly contaminated and present lesser
health risks. Economic changes over several decades have left thousands of communities with these
contaminated properties and abandoned sites. In several important ways, the Agency's Brownfields
Initiative encourages the redevelopment of these sites by addressing concerns such as environmental
liability and cleanup, infrastructure declines, and changing development priorities.
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       A significant number of industrial sites are addressed by the RCRA corrective action
program, administered by EPA and the authorized states. 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 identified 1,712
facilities as high priority - where people or the environment are likely to be at significant current or
potential risk. The Agency is pursuing a strategy for addressing the worst facilities first, as reflected
in the strategic goal.

       The leaking underground storage tank (LUST) program promotes rapid  and effective
responses to  releases  from USTs containing petroleum by enhancing state, local and tribal
enforcement and response capability.   Corrective actions  at sites where UST releases have
contaminated soil and/or groundwater is a key element of the UST/LUST program. Nearly all
corrective actions are undertaken by UST owners and operators under the supervision of state or
local agencies.  EPA oversees these activities on Indian lands.

       The other objective of this goal is to prevent, reduce, and respond to releases, spills, accidents
or emergencies. Through the UST and RCRA permitting and inspection programs, the Agency and
its partners manage the practices of thousands of facilities. When releases do occur, EPA employees
and those of its partners, who are properly trained and properly equipped., will ensure that the
Agency's objective is met by having the capability to successfully respond.

       The goal of the UST program is to prevent, detect, and correct 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. States
have the primary responsibility for ensuring that UST facilities {except those on Indian lands) are
brought into compliance. The Agency's primary role is to provide technical and financial support
to states' UST  programs.  EPA has the primary responsibility for implementation of the UST
program on Indian lands.

       For facilities that currently manage hazardous wastes, EPA ensures human health and
environmental protection through the issuance of RCRA hazardous waste permits.  The  RCRA
program reduces the risk of exposures to dangerous hazardous wastes by establishing a "cradle-to-
grave" waste management framework. This framework regulates the handling, transport, treatment,
storage, and disposal of hazardous waste, ensuring that communities are not exposed to hazards
through improper  management.   Significant progress  has been made  by hazardous waste
management facilities having appropriate controls in place to minimize the threat of exposure to
hazardous substances.  To date, 47 of 50 states, Guam and the District of Columbia are authorized
to issue permits. The  authorization of states for all portions of the RCRA program, including
regulations that address waste management issues included in permits, is an important Agency goal.
In addition, the Agency has developed a strategy to address  solid waste and hazardous waste on
Indian lands. A highlight of this strategy is the interagency project to address issues surrounding
open dumps and their cleanup, the primary waste management concern for tribes.
                                          V-3

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       The Agency' s chemical emergency preparedness and prevention program addresses the risks
associated with the manufacture, transportation, storage and use of hazardous chemicals to prevent
and mitigate chemical releases.  The program also implements right-to-know initiatives 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 36,000 facilities to develop comprehensive risk
management plans (RMPs) and submit them to EPA, state agencies, and Local Emergency Planning
Committees.  The Agency believes that states are best suited to implement the RMP program
because they benefit directly from its success and they often have established relationships with the
communities that may be at risk.

       The oil spill program prevents, prepares for, and responds to oil spills mandated and
authorized in the Clean Water Act and Oil Pollution Act of 1990. EPA utilizes its appropriated
monies to protect inland waterways through oil spill prevention, preparedness, and enforce
compliance at 450,000 non-transportation-related oil storage facilities that EPA  regulates. When
necessary, the Agency  undertakes oil spill response, which is funded through a reimbursable
agreement with the U.S. Coast Guard.
       Research

       The 2001 research program supports the Agency's objective of reducing or controlling 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.  The research program will: 1) provide improved methods and dose-response models
for estimating risks from complex mixtures  contaminating soils and groundwater; 2) provide
improved methods for measuring, monitoring, and characterizing complex waste sites hi soils and
groundwater; and 3) develop more reliable technologies for cleanup of contaminated soils and
groundwater. In 2001, EPA will also deliver the annual Superfund Innovative Technology and
Evaluation (SITE) report to Congress, which provides program/project status and cost savings
information.

       Waste identification, combustion, and waste management constitute the three major areas
of research in 2001 as the Agency works towards preventing releases by proper facility management.
Waste identification research will conduct multimedia, multi-pathway exposure modeling and
environmental fate and transport-physical estimation in support of the hazardous waste identification
rule (HWIR). Waste management research will work on developing more cost-effective ways to
manage/recycle non-hazardous wastes and will examine other remediation technologies while
combustion research continues to focus on characterizing and controlling releases of nickel from
waste combustion.
                                         V-4

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Strategic Objectives and FY 2001 Annual Performance Goals

Objective 01:  Reduce or Control Risks to Human Health

*      172 (for a cumulative total of 821 or 48%) of high priority RCRA facilities will have human
       exposures controlled and 172 (for a cumulative total of 784 or 46%) of high priority RCRA
       facilities will have groundwater releases controlled.

•      Complete 21,000 Leaking Underground Storage Tank (LUST) Cleanups for a cumulative
       total of 271,000 cleanups since 1987.

*      EPA will provide additional site assessment funding to 50 communities, resulting in a
       cumulative total of 2,100 sites assessed, the generation of 5,400 jobs, and the leveraging of
       $1.8 billion in cleanup and redevelopment funds.

*      EPA and its partners will complete 75 Superfund cleanups (construction completions) to
       achieve the overall goal of 900 construction completions by the end of 2002.

•      Provide technical information to support scientifically defensible and cost-effective decisions
       for cleanup of complex sites, hard-to -treat wastes, mining, oil spills near shorelines, and
       Brownfields to reduce risk to human health and the environment.

"      Ensure trust fund stewardship by getting PRPs to initiate or fund the work and recover costs
       from PRPs when EPA expends trust fund monies. Address cost recovery at all NPL and
       non-NPL sites with a statute of limitations (SOL) on total past costs equal to or greater than
       $200,000.

«      Maximize all aspects of PRP 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.

•      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).

•      Sign interagency agreements (lAGs) in 18 months or less from final listing on the NPL (but
       no later than 180 days after completion of the first remedial investigation/feasibility study).

Objective 02:  Prevent, Reduce and Respond to Releases, Spills, Accidents or Emergencies

*      106 more hazardous waste management facilities will have approved controls in place to
       prevent dangerous releases to air, soil, and groundwater, for an approximate total of 70% of
       2,900 facilities.
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       70% of USTs will be in compliance with EPA/State leak detection requirements; and 93%
       of USTs will be in compliance with EPA/State December 22,1998 requirements to upgrade,
       close or replace substandard tanks.
Highlights

       In 2001, 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 continue
to 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 more than 670 Superfund National Priority Sites;
•      secured PRP commitments, over the life of the Superfund program, with an estimated value
       of  $16.2 billion ($13.5 billion in response settlements and $2.7 billion in cost recovery
       settlements);
•      resolved potential liability of 21,000 small volume waste contributing parties through 1999.
•      completed about 6,000 Superfund removal response actions from 1982 through 1999;
•      saved more than $277 million in potential costs by working closely with Department of
       Defense to clean up or close contaminated bases;
•      signed 307 agreements for brownfields assessment pilots through 1999;
       targeted 1,712 high priority RCRA sites for aggressive risk reduction;
•      brought more than 80% (approximately 600,000) of the regulated USTs into compliance with
       new regulatory standards;"
•      responded to an average of 70 oil spills and monitored 130 oil spill cleanups in a typical year;
       and
       worked closely with states to prevent or reduce risks from chemical accidents.

       In 2001, EPA will complete construction at 75 Superfund sites and will take action to address
contamination at 275 sites using removal authorities. The Superfund enforcement program will also
obtain PRP commitments to initiate work at 70% of construction starts at non-Federal facility sites
on the NPL and to conduct or fund removals.

       In  2001,  the Superfund  redevelopment  initiative will facilitate the return of additional
Superfund sites to productive reuse. More than 170 sites have already been brought back into
productive use and are generating approximately 11,000 jobs and $255 million in annual income.
The initiative builds on administrative reforms to explore future use opportunities  with  local
stakeholders before selecting a cleanup remedy.

       Enhancing the Agency's current ability to respond to a terrorist event is an important element
of the Agency's 2001 Superfund request.  Terrorist threats could include biological, chemical and
radiological attacks on populations in the United States.  The Agency is strengthening its anti-
                                          V-6

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terrorism capabilities.  The focus is on improving the Agency's response capability, improving
workforce safety, and working effectively with our Federal and local partners.

       The Brownfields Initiative coordinates a federal approach to assist our partners in better
addressing environmental site assessment and cleanup. In 2001, the Agency will provide additional
funding and technical support to 50 existing assessment demonstration pilots. These pilots provide
states (including U.S. territories), political subdivisions (including cities, towns, and counties), and
federally recognized tribes with useful information and new strategies for promoting a unified
approach to environmental site assessment and characterization, and redevelopment. In addition,
the Agency and its Federal partners will select 10 new showcase community pilots to serve as
models to demonstrate the benefits of interagency cooperative efforts in addressing environmental
and economic issues related to brownfields. S imilar to the 16 showcase communities designated hi
1998, the 10 new showcase communities will capitalize on a multi-agency partnership designed to
provide a wide range of support depending on  the particular needs of each community.

       The Agency will also provide funding to states for activities that are part of brownfields site
assessment pilots. These activities include facilitating communication among brownfields pilots and
with state  environmental authorities.  In addition, the Agency  will provide funding for  the
development and enhancement (or augmentation) of state voluntary cleanup programs. To further
enhance a community's capacity to respond to Brownfields redevelopment, the Agency will also
make 70 awards to capitalize brownfields cleanup revolving loan funds (BCRLF). Communities
completing their brownfields  site assessment demonstration pilot activities and  communities
completing targeted brownfields assessments are eligible to apply for BCRLF pilots. To augment
the communities' capacities to clean up brownfields sites, EPA will fund 10 job training pilots for
community residents and will provide $3,000,000 to the National Institute of Environmental Health
Sciences to supplement  its minority worker training programs that focus on brownfields workforce
development activities. In addition, EPA will continue to explore connections between RCRA low-
priority corrective action efforts and cleanup of brownfields properties.

       In 2001,172 additional high priority RCRA facilities will have human exposures controlled
and 172 additional high priority RCRA facilities will have toxic releases to groundwater controlled.
To accomplish the Agency's RCRA objectives, in 2001, the Agency will implement RCRA cleanup
reforms through the regions and authorized states.  This initiative will reform the current RCRA
corrective action program to be faster, safer and promote smarter cleanups.  The initiative will also
ensure RCRA's strategic goals are met and that millions of people who live or work in the vicinity
of RCRA facilities will be protected. The RCRA cleanup reforms intend to: reduce impediments
to achieving the Agency's objective; enhance state and stakeholder involvement; and, promote
innovative approaches to cleanup actions.  Implementation of this initiative will be the key to a
successful corrective action program for 2001  and beyond.

       In 2001, the RCRA hazardous waste permits program will have permits or other approved
controls in place for 106 additional RCRA hazardous waste management facilities for a cumulative
total of 70 percent of the universe (2,900 facilities). These efforts minimize the threat of exposure
                                          V-7

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to hazardous substances because the RCRA program's comprehensive framework regulates the
handling, transport, treatment, storage, and disposal of hazardous waste.

       The Agency has several efforts underway to reform the RCRA program so that it better
reflects actual levels of risk. The hazardous waste identification rule seeks to exclude lower risk
wastes from hazardous waste regulation.  In 2001, the Agency will continue work to develop
concentration-based exemption levels for constituents occurring in hazardous wastes. The Agency
is working to improve test methods under its toxic constituent leaching procedure to better evaluate
waste leaching potential for assessing whether a waste should be classified as hazardous, how
effective a treatment is, and whether land disposal is an appropriate method for managing particular
wastes. Another risk evaluation effort, the surface impoundment study, will be completed in March
2001,

       Phase I of the maximum achievable control technology (MACT) standards under the Clean
Air Act (CAA) was finalized in 1999. Phase I revised standards for incinerators and cement and
lightweight aggregate kilns that burn hazardous waste. As the MACT standards are implemented,
by 2002, the Agency will reduce the emissions of dioxins, furans, heavy  metals, acid gases  and
particulate matter from these sources.  These efforts will further reduce the indirect  exposure
(primarily through the food chain) to hazardous constituents in emissions, especially to children.
Phase I implementation efforts accelerate in 2001 and focus on the transition from RCRA to CAA
air emissions permitting and tracking of facility progress. In 2000, EPA will initiate work on Phase
II MACT standards for hazardous waste burning boilers.  In 2001, the Agency will continue efforts
to pursue development of the Phase II rule. Like Phase I, the Phase II rule  will address emissions
of dioxins, furans, heavy metals, and particulate matter.

       In 2001, the Agency will work with states and industry to complete the development of
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. Although the states implement the municipal solid waste (MS W) landfill regulatory
programs, the Agency establishes muiimum national standards for state compliance. The Agency
also reviews and approves state MSW landfill permit programs.  The Agency will continue to work
with states to ensure that facilities have approved controls in place to prevent dangerous releases to
air, soil, groundwater and surface water.  These activities will provide a  uniform application of
minimal safe management standards to help ensure that sufficient controls  are in place.

       In 2001, the Agency's priorities in the UST program are to:  1) prevent leaks from USTs; 2)
ensure that USTs are managed properly and meet appropriate technical requirements; and 3) clean
up releases from LUSTs. The Agency will work to ensure that 70% of USTs are in compliance with
EPA and state leak detection requirements and that 93% of USTs are in compliance with  the
December 22,1998, requirements to upgrade, close, or replace substandard tanks. The Agency also
plans to complete 21,000 LUST cleanups under the supervision of EPA and its state, local, and tribal
partners.
                                          V-8

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       Reducing chemical accidents is vital to ensure that communities are not exposed to hazardous
materials. The Agency continues its efforts to help states and local emergency planning committees
implement the risk management plan (RMP) program. EPA has made steady progress in this area
and in 2001 it will delegate the program to seven additional states for a cumulative total of 20. To
reach this goal, EPA will provide technical assistance grants, technical support, outreach, and
training to state and local emergency planning committees.  Through these activities, states, local
communities and individuals will be better prepared to prevent and prepare for chemical accidents.

       Oil spills pose risks to human health and the environment. The Federal oil spill program
prevents, responds to and monitors oil spills that occur in the waters of the United States and
adjoining shorelines. Over 24,000 spills are reported annually, about half of these in the inland zone
which is EPA's jurisdiction.  EPA responds to approximately 70 significant spills a year and
monitors the work of others at approximately 130 additional spills a year.  To reduce the risk of
hazardous exposure to people and the  environment, the Agency aims to prevent oil spills from
occurring, prepare for oil spills that do occur, and respond to spills when necessary.
       Research

       In 2001, exposure research will be conducted to reduce uncertainties associated with
soil/groundwater sampling and analysis and to reduce the time and cost associated with site
characterization and site remediation activities.  Assessment research will evaluate the magnitude
of the risks posed by contaminants to human health and the ecosystem, the contributions of multiple
exposure pathways, the bioavailability of adsorbed contaminants and treatment residuals and the
toxicological properties of contaminant mixtures. Risk management research will be conducted to
develop and demonstrate more effective and less costly remediation technologies involving complex
sites and hard-to-treat wastes.

       Research in support of the hazardous waste identification rule (HWIR) will focus on reducing
the uncertainty associated with exposure assessment model predictions by providing  improved
process level data and models for quantifying pollutant interactions in a variety of natural systems.
The research also provides consultation on sampling and sample design related to compliance with
proposed exit levels in support of the proposed HWIR.  In 2001, EPA will update the HWIR99
modeling methodology for delisting hazardous wastes. Additionally, waste management research
will be conducted to improve the management of both solid and hazardous wastes.  This includes
development and/or evaluation of more cost-effective waste treatment, containment, and recycling
processes, along with technical guidance on their design and implementation.

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. The external factors include, for example, heavy
                                          V-9

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reliance on state partnerships, development of new environmental technology, commitment by other
federal agencies, or statutory barriers.

       The Agency's ability to achieve its goals for Superfund construction completion is partially
dependent upon the performance of other Federal agencies, such as the Department of Defense and
the Department of Energy, as is the establishment of the Restoration Advisory Boards (RABs)/Site
Specific Advisory Boards (SSABs) and other cleanup activities. In addition, the Agency's goals of
construction completions, cost recovery, and maximizing PRP participation are heavily dependent
on the progress of PRP negotiations, agreements  with states and tribes, and  the nature  of
contamination at NPL sites.

       For the RCRA program, the Agency's ability to achieve its goals in release prevention and
cleanup is heavily dependent on state participation. In most cases, states have received authorization
(hazardous waste management program) or approval (municipal solid waste landfill permit program)
and are primary implementors of these programs. As such, EPA relies heavily on states to perform
many of the activities needed to achieve these targets. In addition, increased flexibility has been
provided to states to redirect resources under the National Environmental Performance Partnership
System (NEPPS) to identify priorities.  If states redirect resources away from this area, it will impact
both annual performance and progress toward implementing the Agency's strategic plan.

       The Agency's ability to achieve its goals of:  1) improving leak detection compliance, 2)
ensuring compliance with the 1998 deadline requirements to upgrade, replace or close substandard
USTs, and 3) ensuring LUST cleanups are completed is greatly dependent on state programs for they
are primarily responsible for implementing the UST/LUST program. EPA does not fully fund state
UST programs, so achievement of the annual and strategic goals is dependant on the strength of state
programs  and state funding levels.   States have the primary responsibility  for  ensuring that
owners/operators comply with  UST requirements and for overseeing the completion of LUST
cleanups. However, EPA has the primary responsibility for implementing the UST/LUST program
in Indian country.

       For the risk management and counter-terrorism programs, the Agency recognizes that
accident prevention and response, as well as preparedness for terrorist incidents, are inherently local
activities.  To succeed, the program relies on the commitment and accomplishments of the various
stakeholders.   Key examples of stakeholders include the following: industry, state and local
government, and other Federal partners. Therefore, EPA's success will depend upon the willingness
and ability of stakeholders to deliver on the commitments and obligations in their plans.

       The Agency's goal of delegating the risk management plan (RMP) program to  more states
will depend upon those states enacting laws, allocating funds and developing specific capabilities
that will enable them to review and audit risk management plans. Our goal, to increase the number
of facilities that are in compliance with the reporting requirement, relies on industry's willingness
to provide the necessary leadership to make RMP compliance a priority and commit the resources
to get the job  done.
                                         V-10

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       External  influences may also affect EPA's counter-terrorism goal to train vulnerable
communities and prepare them for terrorist threats. The overarching limitation is the fact that the
DOD, not EPA, leads the initiative. EPA plays a key role, but we neither control the resources nor
set the priorities that could ensure that all Federal, state and local participants are engaged at a level
that will ensure our commitments are met.
                                          V-ll

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                           Environmental Protection Agency

             2001 Annual Performance Plan and Congressional Justification

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

Objective # 1: Reduce or Control Risks to Human Health

       By 2005, EPA and  Its partners will reduce or control the risk to human health and the
environment at over 375,000 contaminated Superfund, RCRA, UST and brownfield sites.
                                 Resource Summary
                                 (Dollars in thousands)

Reduce or Control Risks to Human Health
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Leaking Underground Storage Tanks
Oil Spill Response
Hazardous Substance Superfund
Total Workyears


FY1999 FY2000
Enacted Enacted
$1,511,811.5 $1,451^59.3
$45,697.0 $54,612.5
$55,782.7 $49,138.3
$24,808.8 $24,808.8
$70,356.8 $67,393.6
$962.0 $969.8
$1,314,204.2 $1,254,936.3
3,656.8 3,552.5
Key Programs
(Dollars in thousands)
FT 1999
Enacted
FY2001 FY2W»Req.v.
Request FY 2000 Ena.
$1,500,675.5
$59,538.5
$7,516.6
$32,808.8
$69,832.7
$966.8
$1,330,012.1
3,529.5

FY2000
Enacted
$48,816.2
$4,926.0
($41,621.7)
$8,000.0
$2,439.1
($3.0)
$75,075.8
(23.0)

FY2001
Request
RCRA Corrective Action
RCRA State Grants
Federal Preparedness
$31,059.9

$24,808.8

 $1,500.0
$36,610.5

$24,808.8

 $1,500.0
$40,062.8

$32,808.8

 $2,700.0
                                        V-12

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Leaking Underground Storage Tanks (LUST)Cooperan've
Agreements

Superfund Remedial Actions

Superfund Removal Actions


Federal Facilities

Assessments

Brownfields

ATSDR Superfund Support

NIEHS Superfund Support

Other Federal Agency Superfund Support

Hazardous Substance Research:Hazardous Substance Research
Centers


Hazardous Substance Research:Superfund Innovative
Technology Evaluation (SITE)

EMPACT

Common Sense Initiative

Civil Enforcement

Compliance Assistance and Centers

Superfund - Maximize PRP Invqlvement (including reforms)

Superfund - Cost Recovery

Superfund - Justice Support

Rent, Utilities and Security

Administrative Services

Regional  Management
$58,990,0
$56,466.8
$58,050.0
$585,181.4
$199,216.8
$29,368.2
$87,712.3
$92,603.2
$76,000.0
$60,000.0
$10,000.0
$4,529.8
$7,695.9
$398.4
$135.6
$72.4
$558.3
$87,857.2
$30,580.6
$29,000.0
$0.0
$6,144,3
$0.0
$499,799.0
$200,860.3
$27,750.6
$83,857.7
$92,215.1
$70,000.0
$60,000.0
$10.000.0
$2.504.7
$7,017.3
$35.5
$0.0
$0.0
$514.1
$82,009.6
$30,269.1
$28,663.5
$45,248.5
$14,950.0
$1,146.1
$543,682.9
$199,218.0
$29,803.8
$83,204.7
$91,626.7
$64,000.0
$48,526.7
$10,585.0
$2,594-5
$5,932.0
$436.0
$0.0
$0.0
$445.6
$86,040.1
$32,886.4
$28,663.5
$47,077.8
$14,850.3
$1,205.6
                                                    V-13

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FY 2001 Request

Leaking Underground Storage Tanks

       The leaking underground storage tank (LUST) program promotes rapid and effective
responses to releases from underground storage tanks containing petroleum by enhancing state, local
and tribal enforcement and response capability. In 2001, the Agency's goal is to complete 21,000
cleanups under the supervision of EPA and its state, local and tribal partners. Corrective action at
sites where underground storage tank (UST) releases have contaminated soil and/or groundwater is
a key element of the UST/LUST program. Nearly all corrective actions are undertaken by UST
owners and operators under the supervision of state or local agencies.  EPA oversees these activities
on Indian lands.

       The Agency's highest priorities in the LUST program over the next several years will be to
address the backlog of 168,900 cleanups (as of September 1999), and to address LUST sites that are
difficult to remediate because they are contaminated by methyl tertiary butyl ether (MTBE) and
other oxygenates. To help 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
                             National UST Corrective Action Activity
                          T otal corrective action cumulative overtime
                                       from FY1991 - FY1999
                   Sites

                  400000
                  350000
                  300000
                  250000
                  200000
                  150-000
                  100000
                   50000
                               92
93
94     95     96
 Fiscal Yea r
97
98
99
                  JQCIeanups Completed ^Cleanups Initiated ^Confirmed Releases :


of their cleanup costs, the Agency will continue to support cooperative agreements, using funds from
the LUST Trust Fund, 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, the
Fund is able to pay for this activity.
                                        V-14

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       The Ml extent of petroleum soil and groundwater contamination at existing LUST sites will
not be recognized for many more years, perhaps a decade. To be effective, remediation technologies
continue to advance, especially to address recalcitrant contaminants, such as MTBE. As substitutes
are sought for MTBE, and as the composition of gasoline changes in response to changing engine
performance requirements, states will face the continuing challenge of training new staff in the new
remediation and site investigation technologies,  -

       The Agency's LUST program will continue to support state efforts to make cleanups better,
cheaper and faster. The Agency will continue to promote risk-based decision making (RBDM) so
that LUST sites are addressed based on the risks posed, while  ensuring all sites move toward
cleanup. This requires re-engineering of some  state programs.  The Agency is helping states
implement RBDM at LUST sites.  It will take several years before RBDM implementation is
complete nation-wide.  To promote its implementation, the Agency will provide assistance to state
and tribal  UST programs to surmount technical  impediments.  EPA implementation of RBDM
includes developing ways to measure the performance of RBDM in the states, helping to resolve
multi-state technical implementation barriers to RBDM development, and applying RBDM to
corrective  action on tribal lands.

       The Agency will continue  to support corrective action information exchanges among the
states.  EPA will also support development of policy guidance documents, technical manuals, and
seminars on such topics as monitored natural attenuation and free product recovery. The Agency
will also help sponsor training and workshop programs for state staff to improve LUST cleanup
management.  For example, the Agency will continue to promote "pay-for-performance" cleanup
programs which reduce contamination at LUST sites in less time, with less money.

       As a result of the Agency's July 1999 blue ribbon panel's findings and recommendations on
the use of oxygenates in gasoline, EPA's LUST program will help to support the improvement of
remediation and treatment, as well as the monitoring and reporting of oxygenate contamination in
groundwater at UST sites. As a result of the panel's recommendations, some states may decide to
reopen sites that have been closed  and considered to be clean in order to test for MTBE and other
fuel oxygenates. This will pose an additional burden on the states already heavy workload in
overseeing the backlog of 168,900 sites for which cleanups have not been completed.

       In 2001, the Agency will support the "USTFields" program, which is an ongoing effort that
focuses attention on abandoned or idled industrial and commercial UST facilities. Some of these
facilities are gasoline service stations and automobile lots (i.e., rental car lots) where use of this land
for redevelopment is complicated by real or perceived environmental contamination, USTFields are
located in urban, suburban, and rural areas throughout the country. The Agency's LUST program
is committed to help EPA regions, states, and local governments address cleanup of USTFields once
contamination is discovered.

       The Agency has primary responsibility for implementing the LUST program in Indian
country. EPA educates owners and operators about the UST requirements. EPA also oversees and

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conducts site assessments and remediation in Indian country. Through the end of September 1999,
there were 1,126 confirmed releases on Indian lands.  As of September 30, 1999, a total of 850
cleanups had been initiated and of that total approximately 478 cleanups had been completed.  The
Agency projects that cleaning up all known and yet-to-be-discovered releases in Indian country will
take several more years. In collaboration with tribes, the Agency is implementing a risk-based
corrective action (RBCA) process for LUST sites in Indian country.  When owners and operators
are unable or unwilling to pay for corrective action, the Agency may use funding from the LUST
Trust  Fund to pay for cleanup.  Demonstration grants under RCRA Section 8001, and non-
demonstration grants under RCRA Section 9003, will continue to help Indian tribes develop the
capability to administer their own programs.

Superfund

       The Superfund program addresses contamination from uncontrolled releases at Superfund
hazardous waste sites that threaten human health, the environment, and the economic vitality of local
communities. Superfund sites with contaminated soils and groundwater occur nationally in a large
number of communities, many of them urban areas, where they are often accessible to children or
present exposure to disadvantaged populations. In fact, more than 27 million Americans, including
over 4 million children, live within four miles of a Superfund site. Once contaminated, groundwater
and soils may be extremely difficult and costly to cleanup.  Some sites will require decades to
complete. In 2001, EPA will complete construction at 75 NPL sites for a cumulative total of 830.

       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) enhance the role of states and Indian tribes in the implementation of the Superfund program; 7)
work with the surrounding communities to improve their direct involvement in every phase of the
cleanup process  and  their  understanding of potential site risk;  and 8) promote  reuse  and
redevelopment of remedial and removal Superfund sites.

       More Superfund NPL sites have reached construction completion in the past four years than
hi all of the prior years of the Superfund program combined. As of September 1999, EPA had
completed all final cleanup plans at over 1,000 Superfund NPL sites and undertaken almost 6,000
removals at hazardous waste sites to immediately reduce the threat to human health and the
environment.  The Agency also has cleanup construction underway or completed at 91 % of the sites
on the final NPL (1,412 sites), including:
•      48% of sites have all cleanup construction completed (670 sites)
•      31 % of sites have remedial cleanup construction underway (43 8 sites)
•      12% of sites have had or are undergoing a removal cleanup action (172 sites).

                                         V-16

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          Cumulative  Construction  Completions
:9QO

1.800


> 600

5 500

J400
3
=300
A
=200

->100
                                                                        830
         1995
                    1996
                              1937        1998        1999
                                    F iscal Yea r
                                                           2000 Est
2001 Est
       Additionally, environmental data gathered by EPA through August  1999 shows that
Superfund continues to fulfill its environmental mission and is reducing the risks to human and
ecological health posed by dangerous chemicals in the air, soil, and water. Since the inception of
the Superfund program, EPA has:  1) provided alternative water supplies to over 430,000 people at
NPL and non-NPL sites to protect them from contaminated ground and surface water; 2) relocated
over 22,000 people at NPL and non-NPL sites in instances where contamination posed the most
severe immediate threats; 3) cleaned 216 million cubic yards of hazardous solid waste; and, 4)
cleaned 325 billion gallons of hazardous liquid waste.

       EPA's efforts to address uncontrolled releases at Superfund sites begin when states, Indian
tribes, citizens, other Federal agencies, or other sources notify EPA of a potential or confirmed
hazardous waste site or incident EPA confirms this information and places sites requiring Federal
attention in the Agency's comprehensive environmental response, compensation and liability
information system database. In the case of Federal facilities, sites are placed on the Federal facility
hazardous waste docket.  These sites are then assessed to determine whether. Federal action is
needed. In most cases, EPA makes a determination that no further Federal action is appropriate.
These sites are removed from the inventory and  EPA may refer the site to state or tribal
environmental authorities for further attention - if warranted. For those sites where additional action
is needed to protect public health and the environment, EPA seeks the course of action best suited
to the individual sites.  Sites posing immediate risks may be addressed under removal authority.
Federal action may be delayed or avoided at sites with ongoing state action. In some instances,
potentially responsible parties enter into agreements with EPA to evaluate or cleanup sites prior to
listing on the NPL. In some cases, where  cleanup at these sites is progressing in a timely and
protective manner or is completed prior to final listing, listing on the NPL may be unnecessary.
                                         V-17

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Some sites may be addressed under both removal and remedial authorities when, for example, early
removal action is taken to address risks at sites on the NPL. As a matter of policy, EPA seeks the
governor's concurrence before listing sites on the NPL,

       Removal authority under CERCLA is used by EPA to prevent, reduce or mitigate threats
posed by releases or potential releases of hazardous pollutants 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 situations at NPL sites to make these sites safe from immediate threats while they await
remedial action; 3) time-critical incidents at non-NPL sites posing  major  public health  and
environmental threats; and 4) non-time critical situations at both NPL and non-NPL sites to promote
quicker and less costly cleanup. Sites known to pose the greatest potential risk to public health and
the environment receive priority.

       For sites listed on the NPL, restoration work begins with site characterization and feasibility
study to review site conditions and proposals for future land use. This forms the foundation for the
Record of Decision and remedy selection. Public involvement is a key component in selecting the
proper remedy at a site. A remedial action is performed upon approval of the remedial design and
represents the actual construction or other work necessary to implement the remedy selected.  The
United States  Army  Corps of Engineers and the Bureau of Reclamation also assists EPA in
implementing most high-cost, Trust Fund-financed remedial actions.

       Although completion of construction is a major milestone in the Superfund program, many
activities occur at a site after this milestone is achieved. These "post-construction" activities include
the following: 1) groundwater restoration system operation until cleanup goals are achieved; 2) five-
year reviews to assure that remedies remain protective; 3) implementation of institutional controls;
4) oversight of operation and maintenance activities performed by the states and PRPs to ensure
cleanup methods work properly and the site remedy continues to be effective; and 5) site deletion
from the NPL. As more sites move into post-construction, the Agency is devoting more resources
to assure adequate long-term stewardship.

       EPA is committed to involving citizens in the site cleanup process. Superfund community
relations are based on1 two-way communication designed not only to keep citizens informed about
site progress, but also to give them the opportunity to provide input on site decisions. EPA conducts
outreach efforts, such as holding public meetings, establishing community advisory groups,
providing communities with financial assistance to hire technical consultants to assist them in
understanding the problems and potential solutions to the contamination problems, and distributing
site-specific fact sheets. EPA strives to create a decision-making process to clean up sites that the
communities feel is open and legitimate, and improves the community's understanding of potential
risk at hazardous waste sites. Similarly,, at Federal facility Superfund sites, the Agency encourages
citizen involvement by working with, for example, Department of Defense (DOD) to establish
restoration advisory boards and Department of Energy (DOE) to establish site specific advisory
boards (SSABs).

                                         V-18

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       States and Indian tribes are key partners in the cleanup of Superfund hazardous waste sites.
EPA can authorize the states or tribes to carry out a fund-financed response. However, states and
tribes more often operate as a support agency. In this role., they are actively involved in site response
activities, but they do not take on a lead role. To support their involvement as a lead or support
agency, EPA provides financial support through cooperative agreements to conduct removal, site
assessment, remedial., and enforcement projects and for core infrastructure activities.

       Under core program cooperative agreements, EPA provides non-site-specific funds to
develop,  maintain and enhance states'  and tribes' capacity to manage and implement CERCLA
responses. EPA currently has core program cooperative agreements with 48 states and 15 tribes.
Activities funded under the core program cooperative agreements include the following: 1) establish
and update procedures for emergency responses and longer-term remediation procedures which
include developing and updating of generic health and safety plans, quality assurance project plans,
and community relations plans; 2) develop/update provisions for satisfying all requirements and
assurances which include fiscal and contract management activities for CERCLA; 3) provide legal
assistance relating to CERCLA, such as document review for legal sufficiency, development and
refinement of the enforcement program, development of legal authorities, and legal assistance for
coordinating applicable or relevant and appropriate requirements (ARAR) identification; and 4) hire
and train staff to manage publicly-funded cleanups.

       In May  1998, EPA  released  the "Plan to Enhance the Role of States and Tribes in the
Superfund Program."   The plan was developed so that EPA can share  Superfund program
responsibilities more fully with interested and capable states and tribes, enabling the cleanup of more
sites. In 1999, EPA continued to implement and evaluate the plan. Currently, 19 pilots have been
approved with 9 states and 10 tribes.

       Across the country, thousands of Federal facilities are contaminated with hazardous waste,
unexploded ordnance (UXO), radioactive waste, fuels, and a variety of other toxic contaminants.
These facilities include many different types of sites, such as formerly used defense sites, abandoned
mines, nuclear weapons' production  plants, military ranges, fuel distribution areas, and landfills.
The Agency works with the facilities to promote faster, more effective, and less costly cleanups and,
where appropriate, to encourage reuse. EPA provides technical and regulatory oversight at Federal
facilities on the NPL to ensure protection of human health,  effective program implementation, and
meaningful public involvement. The Agency works with the POD, DOE, and other Federal entities
to find protective, creative, and cost-effective solutions.

       The Superfund Federal facilities response program oversees cleanup at Federal facilities. To
date, nine sites have been deleted from the NPL and in 1999 six sites were added to the NPL,  The
program  works with a large number of ongoing projects:  477 remedial investigations/feasibility
studies, 76 remedial designs, and 204 remedial actions. In many cases, Federal facilities face unique
challenges due to the types  of contamination (e.g., radiation, UXO), the size of the facility (e.g.,
Hanford is over 500 square miles), or the complexities of reuse related to environmental issues (e.g.,
base closure).

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       In response to recommendations from the EPA Office of Inspector General, EPA is
establishing a quality management system for environmental information. This will entail the
implementation of a quality management plan based on an adaptation of the American National
Standard "Specifications and Guidelines for Quality Systems for Environmental Data Collection
and Environmental Technology Programs," ANSI/ASQC E-4-1994, that will establish requirements
for headquarters and the regions.  EPA has taken the lead in establishing comparability and
consistency in quality assurance across the Federal community through the intergovernmental data
quality task force, which is responsible for the adaptation of ANSI/ASQC for use across the federal
community.   Implementation of  the  quality management system  will involve significant
collaboration with other federal agencies, including the Department of Defense and the Department
of Energy. As part of implementation, training and orientation will be required for the regions as
well as federal facilities.  Establishing the quality management plan will not complete this activity;
rather it will initiate a continuing process that is vital to assure critical restoration and reuse decisions
are based on environmental data that are reliable and technically sound.

       EPA has significantly improved the Superfund program through administrative  reforms.
These efforts will continue in 2001.  There have been many noteworthy achievements over the last
year.   Key accomplishments  through the  end of 1999 include the following: 1) establishing
community advisory groups at 51 sites; 2) reviewing 43 site decisions for an estimated savings of
over $60 million; 3) saving more than $1.3 billion in future costs from updating over 290 remedies;
4) evaluating over 75 projects on the risk-based priority panel for NPL sites; and 5) archiving over
31,800 CERCLIS sites to help promote the economic redevelopment  of these properties. The
successes realized throughout Superfund set the Agency in a uniquely positive position to achieve
and expand Superfund accomplishments in the coming years.

       The Superfund redevelopment initiative is a new coordinated national effort to facilitate the
return of Superfund sites to productive use. Through the Superfund administrative reforms effort
and cumulative experience, EPA has become increasingly aware of the importance of fully exploring
future use opportunities at Superfund sites with its partners before selecting and implementing a
cleanup remedy. This has resulted in Superfund sites, which were once thought to be unusable that
are now being "recycled" back into productive use. EPA has compiled a list of over 170 Superfund
sites that have  been recycled. At these sites, more than 13,000 acres are now in ecological or
recreational use. Approximately 11,000 jobs, representing more than $255 million hi annual income,
are located at sites that have  been recycled  for commercial use.  EPA believes it can help to
significantly increase the number of sites in productive reuse by focusing its  efforts  more  on
recycling Superfund sites, and by involving its partners hi determining the reasonably anticipated
future uses of sites so that it can select, design and implement cleanups that are consistent with those
uses, while protecting human health and the environment.

       EPA's focus on recycling Superfund sites builds on the success the Agency has achieved
through its administrative reforms.  In  carrying out this initiative, EPA's priority remains the
protection of human health and the environment. While operating within the current regulatory and
statutory framework, EPA will take full advantage of its administrative flexibility in recycling

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Superfund sites.  The Agency remains committed to accelerating the pace of Superfund cleanups
without compromising its "enforcement first" approach, which includes the recovery of costs from
those who are responsible for the pollution.  The Superfund redevelopment initiative will focus on
activities to support remedy selection and design. Ten pilot sites were selected and awarded during
1999.  By the end of 2000, EPA expects to select up to an additional  40 pilots sites through a
competitive process.  These activities are expected to be valued up to $100,000 in direct financial
assistance and/or services to local communities.

       In  2001, the Agency will increase its emphasis on anti-terrorism to meet its leadership
responsibilities under the National Contingency Plan, CERCLA, Oil Pollution Act, and Presidential
Policy Directives 39 and 62. Key Federal and state  agencies depend on EPA to carry out its
responsibilities as a leader of the National Response  System (NRS),  Under this initiative, the
Agency will: 1) improve preparedness and response capability to respond to intentional releases and
acts of terrorism; 2) enhance emergency response team capabilities to deliver equipment, experts,
and specialized training necessary to support regional counter terrorism teams; and  3) enhance
biological, radiological, laboratory, and training capabilities.

       These improvements will help EPA meet its responsibilities to Federal, state and local
partners and to enhance its role as an NRS leader. It-will also position EPA to save lives and prevent
environmental harm in the event of intentional releases or acts of terrorism. Also, it will protect the
health and safety of EPA On-Scene Coordinators (OSCs) when they respond  to a terrorist event
through enhanced equipment and training.

Radioactive Technical Assistance

       In 2001, EPA will provide national level guidance on the risks posed by radioactive materials
in the environment including technical guidance for conducting risk assessments in order to limit
public and environmental exposure to radiation. EPA will accomplish this by working with the
public, industry,  states, tribes and other government agencies to use information systems and to
inform and educate people  about radiation risks and promote actions that reduce human exposure.
EPA alone, or in partnership with other Federal agencies, will continue to promote the management
of radiation risks in a consistent safe manner at Superfund site, DOE, DOD, state, local and other
Federal sites by:

•      Developing risk assessment models, remediation technologies,  and  measurement and
       information systems.
•      Providing training and direct site assistance including laboratory, field and risk assessment
       support.
•      Conducting  radiological  assessments of sites  with actual  or suspected  radioactive
       contamination.

       The radiation program also maintains an on-going capability to provide radioanalytical and
mixed waste analytical data on environmental  samples to support site assessment and cleanup

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activities.  EPA also 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 2001, EPA will continue its successful
emphasis on completing construction at Superfund sites by obtaining commitments for PRPs to
conduct work at new remedial construction starts at non-Federal facilities and ensuring compliance
with Federal facility statutes and CERCLA agreements.

       The Superfund enforcement program has successfully encouraged or compelled PRPs to
undertake or fund approximately 70% of new remedial construction work at 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 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 funds to the Department of Justice (DOT) for an interagency agreement (I AG) to assist EPA
Superfund in enforcement efforts. This objective also supports the RCRA corrective action and the
regional LUST legal enforcement program.

       The Superfund program continues to gainfully benefit from Superfund enforcement reforms.
These  reforms include undertaking PRP searches  and investigations  to  develop  sufficient
information to make orphan share determinations; making orphan share offers at all eligible sites;
expediting negotiations to facilitate early de minimis settlements; settling with parties with limited
ability to pay; making more effective and widespread use of Alternative Dispute Resolution (ADR);
issuing administrative orders to the maximum practicable number of PRPs at a given site; creating
site-specific accounts; removing liability barriers to economic redevelopment through prospective
purchaser agreements; and assessing PRP compliance with cleanup obligations at sites with potential
environmental justice issues then seeking penalties for significant non-compliance with cleanup
requirements, as appropriate.

       In 2001, the Agency will negotiate remedial design/ remedial action cleanup agreements at
sites on the  NPL 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

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selected cleanup is complete. The Superfund program will implement and ensure the 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 LAG
be signed by all appropriate parties which provide enforceable schedules for the progression of the
entire cleanup.   For Federal facility NPL sites, the signing of an IAG and oversight of its
implementation ensures a protective cleanup at a timely pace. EPA  will monitor milestones in
existing 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 2001, EPA will enter into an IAG with the responsible Federal agency at
all Federal facilities as soon as possible after listing on the NPL but no later than 180 days after
completion of the first remedial investigation/feasibility study.

       In 2001, the Superfiind 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 ADR.

       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.

Other Federal Agencies

       Other Federal agencies contribute to this objective by providing essential services in areas
where EPA does not possess the needed Superfund specialized expertise. Contributors include the
Agency for  Toxic Substances  and  Disease  Registry  (ATSDR),  the National  Institute of
Environmental  Health Sciences (NIEHS), the Occupational Safety  and Health Administration
(OSHA), the National Oceanic and Atmospheric Administration (NO AA), the Department of Interior
(DOI), the United States Coast Guard  (USCG), and the Federal Emergency Management Agency
(FEMA). Some of the essential services performed by these Federal agencies include the following:
1) ATSDR conducts public health assessments at NPL and non-NPL sites; maintains toxicology
databases for chemicals found at sites; and provides health education to health care providers, local
and national health organizations, and state and local health departments; and 2) NIEHS  manages

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a worker training grant program which trains workers who are, or may be, working with hazardous
waste and funds a basic research program which focuses on assessing the impacts of complex
chemical mixtures on humans.

Overview of Other Federal Agency Funding
Agency
ATSDR
NIEHS
DOJ
USCG
FEMA
NOAA
DOI
OSHA
TOTAL
FY2000
Enacted
$70,000,000
$60,000,000
$28,663,500
$4,800,000
$1,100,000
$2,450,000
$1,000,000
$650,000
$168,663,500
FY2001
Pres. Bud
$64,000,000
$48,526,700
$28,663,500
$5,135,000
$1,100,000
$2,450,000
$1,200,000
$700,000
$151,775,200
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 brownfield properties exist. Concerns about
environmental liability and cleanup, infrastructure declines, and changing development priorities
have worsened the situation.

       In response to needs for the assessment and cleanup of brownfield properties, the Agency
implements strategies to bring these properties back into use for the benefit of their communities.
The brownfield economic redevelopment initiative is a comprehensive approach to empower states,
communities, and other stakeholders  interested in  environmental  cleanup and  economic
redevelopment to work together to prevent, assess, safely clean up, and sustainably reuse these
properties.

       The Agency provides funding for brownfield site assessment demonstration pilots for up to
$200,000 each.  These pilots provide EPA, states, local governments, and federally recognized
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Indian tribes with useful information and new strategies for promoting a unified approach to
environmental site assessment and characterization, and redevelopment. In 2001, the Agency will
continue to fund brownfield pilots with Superfund program assistance. This assistance is designed
to facilitate communication between brownfield pilots and state environmental authorities, and
expedite the redevelopment and reuse of the brownfield properties.  Through 2001, the site
assessment pilots will have resulted in a cumulative total of 2,100 sites assessed, the generation of
5,400 jobs, and the leveraging of $1.8 billion in cleanup and redevelopment funds.

       Where appropriate, the Agency provides funding for targeted brownfield assessments in
communities that are not successful in competing for an assessment pilot. This activity enjoys wide
support from cities and other local communities. This funding provides preliminary assessments and
site investigations (PA/SI) using standard methodology established by the American Society for
Testing Materials. Site assessments at non-pilot brownfield sites are performed either under existing
PA/SI cooperative agreements with states or through EPA contractors.

       To continue EPA's efforts to provide a pattern of interagency collaboration in addressing
environmental and economic issues in brownfields communities, the Agency and its Federal partners
will designate 10 new showcase communities in 2001 for a total of 26 showcase communities.
These designated brownfields showcase communities will be distributed across the country and vary
by size, resources, and community type. The goals of the project are to: promote environmental
protection and restoration, economic development, job creation, community revitalization, and
public health protection through assessment, cleanup and sustainable reuse of brownfields; link
federal, state, local and non-governmental action supporting community efforts to restore and reuse
brownfields; and develop national models demonstrating the positive results of public and private
collaboration in addressing brownfields challenges.

       The Agency will  also award cooperative agreements to capitalize brownfield cleanup
revolving  loan fund pilots (BCRLF) of up  to  $500,000 each,  Communities completing their
brownfield assessment demonstration pilot activities and communities completing their targeted
brownfield assessments "are eligible to apply for a BCRLF pilot.  This funding enables eligible
entities to develop cleanup strategies, make loans to prospective purchasers to cleanup properties,
and encourages communities to leverage other funds into their revolving  loan fund pools.  In
addition, the Agency awards brownfield job training and development demonstration pilots at up to
$200,000 over two years to help residents of brownfield communities take advantage of new jobs
created by the assessment and cleanup of brownfield.

       Funding to support the expansion, enhancement and development of state voluntary cleanup
programs  (VCPs) continues to be an important activity in the Agency's attempt to reuse and
redevelop Brownfield 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 which 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 brownfield properties.

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      The Agency will facilitate the reuse of Brownfield properties through the application of
transportation/land use/ah- quality models in cities around the country that show the air quality
benefits of Brownfield redevelopment and infill. EPA will work with city mayors and states to make
Brownfield redevelopment and infill a National Ambient Air Quality Standards attainment strategy
under the State Air Quality Implementation Plans.

Base Realignment and Base Closure

      Since 1993, EPA's Superfund Base Realignment and Base Closure (BRAC) program has
worked with the Department of Defense (DOD) and the states' environmental programs to achieve
the Administration's goal of "making property environmentally acceptable  for transfer, while
protecting human health and the environment" at closing or realigning military installations.
Between 1988 and 1995, during the four rounds of base realignments and closures, over 120 major
military installations representing the Army, Navy, Air Force, and Defense Logistics Agency were
mandated to close. With the Federal government reducing its military bases and nuclear production
facilities, the government is also disposing of excess property to reduce operation and maintenance
expenses while promoting the economic development opportunities of the local communities.

      There are approximately 108 fast track cleanup military bases where EPA supports DOD's
cleanup and transfer process. The Fast Track program strives to make parcels available for reuse as
quickly as possible, by either transfer of uncontaminated or remediated parcels, or lease of
contaminated parcels where cleanup is underway or "early transfer" of contaminated property
undergoing cleanup.  A major success of the fast track program has been the formation of the base
cleanup teams (BCTs) at the fast track designated installations. The teams, which include EPA,
DOD, and state  environmental experts, engineer commonsense approaches to cleanups by

     Time and  C ost  A voidance Attributed  to   EPA
  Participation in the  Fast Track Cleanup  Program
  FY99 pHHHIHHi^HHHH^^^H^^^H^Bbia      $277,000,000
                                                                296 project years
                                                5 210,000,000
                                                209 project years
                                     S 150,000,000
                                     150 project years
                               S 120,000,000
                               90 project years
FY96



FY95


            50       100       150      200      250      300
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developing common goals and priorities up front. The Agency empowers its team members to make
decisions to expedite the process of accelerating cleanup while integrating base reuse priorities. To
further assist with fast track cleanup, 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.

      By EPA partnering with DOD and the states  in cleaning up contaminated closed and
realigned bases, it is estimated that more than 296 project years have been cut off project baselines;
more than $277 million in potential costs have been avoided; and more than 444,000 acres of BRAC
property are available for reuse (more than 132,000 of these acres have been transferred or leased
for reuse).

Resource Conservation and Recovery

      For decades, many industrial facilities in this country have mismanaged their hazardous
wastes.  Some of the facilities - particularly those that have been abandoned or closed — are being
addressed under the Superfund program,  A significantly larger number, however, fall under the
Resource Conservation and Recovery Act (RCRA) corrective action program that is administered
by EPA and the authorized states.  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 approximately 1,700
facilities as high priority — where people or the environment is likely to be at significant current or
potential risk. The Agency is pursuing a strategy for addressing the worst facilities first, as reflected
in the Agency's annual performance goal.

      Over the past several years, the Agency has emphasized streamlining the corrective action
program and improving overall implementation. In 2001, those efforts will be further advanced by
the RCRA cleanup reforms initiative. Designed to encourage cleanups, reduce impediments to
cleanup actions,  enhance state and stakeholder involvement, and promote the reuse of RCRA
facilities, the initiative will accelerate the pace of the program.  However, reinvention will not be
effective without strong and aggressive implementation efforts by the Regions and states. Currently,
thirty-two states and one territory are authorized to implement the corrective action program. During
2001, actions will focus on authorization of states for  implementation of the hazardous waste
identification rule (HWIR) - media regulation and the post closure rule, HWIR-media rule created
a new RCRA permit called a remedial action plan (RAP) for managing wastes from cleanups. The
RAP will be faster and easier to obtain than other permits and will not require facility-wide
corrective action which previously impeded cleanup progress at some facilities.

       The 2001 request includes additional resources to execute these needed reforms and to stay
on track for meeting the goals. Most of the increase will go to state implementors to help offset
reduced "buying" power resulting from level pant fiinding over the past several years.  The
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additional EPA resources will be used to implement the cleanup reforms, allowing the Agency to
accelerate the pace of accomplishments as we face increasingly complex facility cleanups.

       In 2001, the Agency will be implementing a broad spectrum of approaches to expedite
corrective action and achieve the goals. These approaches include new uses of enforcement tools
to create incentives for cleanup at facilities with cooperative parties as well as to compel cleanups
at facilities where collaborative approaches have not yielded results.  In addition, the Agency will
explore policy changes  to address liability concerns  in  order  to facilitate the cleanup and
reuse/redevelopment of RCRA facilities.

       The Agency has developed and is implementing new guidance to use in determining when
a facility has met the RCRA performance goals (environmental indicators), or human exposure
controlled  and groundwater releases  controlled.  Although the long-term goal for the RCRA
                  RCRA Corrective Action Environmental Indicator Goals

0)

e
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offer several workshops to targeted audiences for results-based project management in the RCRA
corrective action program. Similar workshops will occur in the Regions for 2000. Workshops and
internet-based training are both essential to maintain interaction between the states, regions and
headquarters programs and to share successful approaches, identify and address problems, and
ultimately achieve the program's goals.
       Research

       This research supports the Agency's objective of reducing or controlling 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.

       Groundwater, soils and sediments research focuses on understanding the processes that
govern contaminant transport and fate and also to improve remediation and monitoring technologies,
especially their cost-effectiveness. For groundwater, immediate threats to human ingestion may be
minimized  by the provision of costly alternate water supplies.  However, these do not always
eliminate other routes for human exposure (e.g., inhalation via showering) nor is the value of the
groundwater resource  replaced,  since  groundwater discharge  can also result  in  sediment
contamination, presenting a direct ecological threat to the fauna and the rest of the food  chain.
Contaminated soils pose chronic and acute health risks to surrounding communities and ecosystems
through a number of exposure routes and pathways, and can provide a continuing source of
groundwater contamination. Contaminated sediments can pose significant risks to aquatic and other
ecosystems, and to humans who use surface waters for food or recreation.

       The human and ecological risks posed by contaminated groundwater, soils and sediments are
potentially high for the following reasons: 1) the large number of sites with known contamination;
2) the presence of highly toxic (and often extremely persistent) contaminants, such as heavy metals
and  volatile organic chemicals;  3) the potential for multiple routes of exposure;  4)  many
contaminated sites (e.g., sediments, mining) cover large areas, providing high exposure (particularly
to ecosystems); 5) ground water is the source of drinking water for over 50% of the population; and
6) sediments are an integral part of the riparian zone, affecting surface water quality. In addition, the
extent and geological complexity of many of these sites (often contaminated with complex mixtures
of contaminants) present many uncertainties when determining risk, as well as in finding accurate,
low  cost techniques for site characterization  and remediation.  Long term performance of
remediation processes will also be studied.

       Exposure research will be conducted to reduce uncertainties associated with soil/groundwater
sampling and analysis and to reduce the time and cost associated with site characterization and site
remediation activities. Methods and instruments will be developed and tested to provide accurate
characterization of sites. Assessment research will evaluate the magnitude of the risks posed by
contaminants to human health and the ecosystem, the contributions of multiple exposure pathways,

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and the toxicological properties of contaminants. As a result, quantitative estimates of the toxicity
of contamination will be achieved.  Risk management research will be conducted to develop and
demonstrate more effective and less costly remediation technologies.

       For Superfund exposure research in 2001, the two areas of focus are: 1) surface/subsurface
characterization and sampling, and 2) analytical methods for groundwater and soils. Non-invasive
geophysical techniques can provide methods for subsurface site characterization. During 2001,
significant effort will be directed toward experiments at a unique field test facility for evaluating
these geophysical technologies under controlled dense non-aqueous phase liquid (DNAPL) spill
conditions. The facility will also be used to evaluate other subsurface (e.g. groundwater) sampling
methods and designs.

       Research is being conducted to examine the influence of sample size on "representativeness"
of soil volatile organic compound (VOC) results, VOC releases due to sample disturbance, and the
ability  of NAPLs to penetrate caliche.  Work will continue in  2001 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. In 2001 and beyond, the focus will shift to semi-volatile compounds and conducting
experiments under controlled spill conditions and improving environmental statistics and survey
designs.

       Phyto process research will develop and incorporate plant/enzyme mediated transformation
algorithms into multimedia models. The overall goal is to quantitatively describe these processes
through air, water, and soil systems, using molecular descriptors of the organic compounds and
physical/chemical descriptors of the system to model the fate processes.  In 2001, efforts will also
produce a critical review of documented  aquatic and terrestrial plant phyto processes and data
complete with formulation of kinetic algorithms for organic and inorganic pollutants of concern.

       Research in  the application  of advanced instrumentation  to soils  and groundwater
characterization focuses, on methods that will provide high-quality data rapidly with simple  and
rugged protocols. Emphasis is on technologies that can eventually be used to perform analysis hi
the field, specifically those that can determine pollutants that are  intractable by conventional EPA
methods, as well as those that improve risk assessments by providing specific information on the
most hazardous forms of pollutants.  Currently, pollutants of primary interest are polyaromatic
hydrocarbons (PAHs), chlorinated  organics, petroleum related  compounds, and toxic metals.
Emphasis in 2001 and beyond will be on innovative methods and technologies to evaluate /
characterize the natural attenuation of contaminants  in ground water and soils. A major product for
2001 will be a journal article to describe a field method/biosensor for detection of phenols in soil
leachate from contaminated Superfund sites.

       Superfund health risk assessment research develops methodologies, models, and factors that
will enable  risk  assessors  to develop more  accurate quantitative  estimates of the amount of a
contaminant found in the soil matrix that is toxicologically available to cause harm. Major areas of
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emphasis for 2001 include; developing statistical distributions for exposure factors to facilitate
probabilistic analysis, further refining and validating the biokinetic models for lead and other toxic
metals,  developing better  models  and  methods for dermal exposure,  and evaluating the
bioavailability of soil-borne contaminants.

       Research is also being conducted to develop models and factors that quantitatively predict
the relative toxicity of complex mixtures of groundwater contaminants compared to their individual
toxicities. This research attempts to answer the question of whether mixtures of groundwater
contaminants produce a more toxic (synergistic) response, a less toxic (antagonistic) response or no
net change in human response (additive). The major area of emphasis for 2001 will he completing
a database describing known chemical interactions and developing models to predict the interaction
of other chemicals.

       Ecological risk assessment research develops methodologies and factors that will enable
ecological risk assessors to estimate the amount of soil-borne  contamination  that will be
lexicologically available to harm ecological receptors. The major area of emphasis for 2001 will be
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.

       An additional important project is to continue the Ecological Risk Technical Support Center,
which is being established in 2000 on a one-year pilot basis.  The Center will assist regional risk
assessors by providing them with state-of-the-art research findings from across ORD.

       Risk management research will address priority remediation problems for groundwater and
major subsurface sources of groundwater contamination (e.g. NAPLs). The research scope includes
treatment and containment, related source characterization, and groundwater fate (including natural
attenuation) and transport modeling.

       In 2001, the Agency plans to continue small-scale field tests on the use of surfactants and
cosolvents for DNAPL cleanup. DNAPLs are a major source of organic groundwater contamination
for which there are few effective commercialized remediation options.  Research on the use of
thermal treatment processes (e.g., steam) will be expanded and studies on the application of soil
vapor extraction to remediation of VOCs in the vadose zone will be completed.

       Research will continue on the cost-effectiveness of several bioremediation options for the
treatment of PAHs, and on the effectiveness of monitored natural attenuation (MNA) towards this
contaminant class. Research on the immobilization of metals in soils to reduce their mobility and
bioavailability  will shift from lead to other priority metal contaminants.  Studies of phyto-
remediation options will continue, with  field studies of selected options  and other studies to
understand the chemical, physical and biological processes involved.
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       Containment research will include caps, covers and vertical barriers for the vadose zone, as
well as fixed barriers and pumping methods for contaminated plumes. Research for barriers will
address long term maintenance and effectiveness.   Some innovative systems for containment
improvement will also be investigated. Work on revising the hydrologic evaluation of landfill
performance (HELP) model for predicting design parameters for conventional covers will continue.

       Research on improved indicators for MNA of organics, initiated in 2000, will continue.
Expanded research will be conducted on the remediation of dissolved inorganic plumes and related
source areas, including their natural attenuation (NA). Other  groundwater research will include
developing methods to evaluate the long-term performance of permeable reactive barriers (PRBs)
and groundwater containment systems.

       Soil and sediments  remediation research evaluates and develops more cost-effective
techniques for cleanup of priority contamination problems in soils, the vadose zone (i.e., unsaturated
zone) and sediments. In  2001, the program will expand research on sediments contaminated with
persistent organics and/or metals.  Emerging in-situ sediments remediation techniques and MNA
effectiveness will be evaluated, along with improved methods for assessing their performance.

       The Superfund Innovative Technology Evaluation (SITE) program fosters the development
and use of lower cost characterization technologies and risk management remediation technologies
for sediments,  soils, and groundwater. In the characterization area, the focus will be to initiate
studies on ecological samplers and biosensors, while completing efforts on geophysical technologies
and demonstration reports on total petroleum hydrocarbons (TPH) in soil.  Under the remediation
area, the program will be continuing evaluations of technologies dealing with priority remediation
problems where innovative technologies are being commercialized. Remediation problems include:
complex mixtures of contaminants,  difficult-to-treat contaminants  in groundwater and  soils,
DNAPLs, and sediments.  In addition, the  annual SITE Report to Congress, which provides
program/project status and cost savings information, will be produced.

       In 2001, oil spills research will involve the development of an oil spill model applicable to
near-coastal water and options to clean up fuel and chemical spills to navigable waterways. Efforts
will result in an interim report on development of the Fate and Transport Water Quality Model,
addressing modeling management alternatives and pollutant exposure to coastal ecosystems.

       Research on bioremediation as a clean up option for petroleum oil spills will be continued
at a decreased level, with emphasis on its application to fresh water spills. Work will continue on
an effectiveness protocol for  surface washing  agents, while development of a protocol  on
emulsification processes for petroleum and non-petroleum oils will be brought to a close. Studies
will continue on the mechanisms of biodegredation of animal fats and vegetable oils and the toxicity
of then1 biodegredation bi-products.

       LUST research includes better understanding of naturally occurring subsurface processes for
fuels components (including fuel oxygenates like MTBE), reliable indicators to measure NA rate and
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extent, and models and resource documents to predict likelihood of site-specific NA effectiveness.
In 2001, research will continue to focus on the remediation of MTBE and other oxygenates. Field
studies of the viability of natural attenuation to degrade MTBE in groundwater under differing hydro
geochemical conditions will continue, along with laboratory and pilot studies of NA and enhanced
biodegredation processes for MTBE in groundwater, soils, and the vadose zone.
FY 2001 Change from FY 2000 Enacted

LUST:

*      (+$1,583,200) Increase for LUST cooperative agreements to provide assistance to states.

       (+$1,373,500 and +4.9 FTE)  Increase for LUST corrective action to address the large
       number of cleanups that have yet to be completed and new challenges the Agency faces in
       helping states address complex cleanups such as those contaminated with fuel oxygenates,
       e.g., MTBE.

•      (-$756,000) Decrease to State Fund Solvency and Remediation Technologies to support an
       increased need in LUST corrective action.

•      (+$148,600) Increase for LUST tribal support to enhance EPA implementation of the LUST
       program in Indian Country.

Superfund:

•      (+$27,027,600) Increase for Superfund remedial activities which will result in additional
       remedial action project starts in 2001.

•      (+$ 16,888,300) Increase to Superfund remedial action program. Funds were redirected from
       other Federal agencies.

•      (-$11,473,300) Decrease to National Institute of Environmental Health Sciences for basic
       research.  Funds were redirected to support Superfund remedial action program.

       (-$10,000,000, -  10.0 FTE)  Redirected from Superfund remedial activities to fund the
       RCRA Corrective Action Reforms Initiative.

•      (-$6,000,000)  Decrease to Agency for Toxic Substance and Disease Registry, Funds were
       redirected to support Superfund remedial action program.

•      (+$5,022,200) The Agency is providing additional payroll dollars to cover increased costs
       associated with the current workforce.
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       (+$2,340,000)  Increase to support oversight of the increasing number of NPL Federal
       facility cleanup projects, and EPA's initiative to play a greater role at the more than 9,000
       Formerly Used Defense Sites (FUDS).

       (+$1,374,200)  The increase will help the  program to maximize PRP participation in
       conducting or funding response actions while promoting fairness in the enforcement process;
       recover costs from PRPs when EPA expends funds from the Trust Fund; and negotiate
       agreements with Federal facilities for NPL site cleanup.

       (+$ 1,200,000, +12.0 FTE) Redirected from the Superfund removal program to perform anti-
       terrorism activities.

       (+$585,000)  Increase to U.S. Coast Guard, Department of Interior and Occupation Safety
       and Health Administration.
Brownfields :
EPM:
       (-$7,195,600) Reduction to Brownfields Site Assessment. Funds were redirected to support
       increases to Revolving Loan Fund and Brownfields Technical Support.

       (+$4,013,800) Increase to Revolving Loan Funds to support a shift hi program emphasis as
       more brownfields communities move into the cleanup phase.

       (+$3,383,300) Increase to Brownfields Technical Support to support development and
       implementation cost of iaformation systems to collect, track and report key Brownfields
       program data.  It also reflects an increase in cost oversight and technical support for a
       growing number of Brownfields pilots.
       (+$2,000,000, +10 FTE)  Increase to RCRA Corrective Action Reforms Initiative to fund
       salary and program activities.  Funds were redirected from the Superfund program.

       (+$1,364,900)  Additional funds provided to support increase costs associated with the
       workforce based on the Agency's repricing of payroll.
       (+$8,000,000) Increase to Corrective Action Reforms Initiative for assistance to authorized
       states to increase cleanup activities. Funds were redirected from the Superfund program.
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       Research

Superfund
S&T
       (+$ 1,084,100) This increase represents additional resources being provided to the Superfund
       Research Centers' programs (including Minority Centers). The research Centers provide a
       national program of basic and applied research, technology transfer, and training, for several
       priority research areas. These priority areas include contaminated sites (groundwater and
       soils), contaminated sediments, and mining wastes.

       (+$477,700) The R&D program, including infrastructure support costs, is spread across eight
       of the ten goals in the Agency's GPRA/budget structure.  Based on a review of actual
       infrastructure utilization under each goal (i.e., utilization of workyears and associated PC&B,
       travel, operating expenses, and working capital fund), adjustments are being made across
       goals to more accurately reflect expectations for use in 2001.

       (-$2,437,500) Funding to support the Gulf Coast HSRC 2000 Congressional earmark will
       not be continued in 200 L

       (41,141,200,-LOFTE)In2001,fundingfortheSITEProgramwillbereduced. Thenumber
       of risk management demonstrations will decrease by one to two, depending on the nature of
       the technologies under evaluation, in order to accommodate additional funding required for
       the Superfund Research Centers.

       (-$515,350)  This decrease  represents  a transfer of  resources from the  Superfund
       Appropriation to the S&T appropriation in support of the Agency's 2001 RCRA Corrective
       Action (CA) initiative. The reduction will result in a reduced level of technical support and
       technical transfer related activities.  See Goal 5 Objective 2 for description of 2001 RCRA
       initiative activities.
       (-$6,298,300) The 2001 request is $6,298,300 below the 2000 Enacted budget level due to
       Congressional earmarks received during the appropriations process that are not part of the
       2001 President's Request.

       (+$1,531,400) The R&D program, including infrastructure support costs, is spread across
       eight of the ten goals in the Agency's GPRA/budget structure. Based on a review of actual
       infrastructure utilization under each goal (i.e., utilization of workyears and associated PC&B,
       travel, operating expenses, and working capital fund), adjustments are being made across
       goals to more accurately reflect expectations for use in 2001.
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Annual Planning Goals

Leaking Underground Storage Tank Cleanups

In 2001     Complete 65 Leaking Underground Storage Tank (LUST) Cleanups in Indian Country for
           a cumulative total of 603 cleanups since 1987.

In 2001     Complete 21,000 Leaking Underground Storage Tank (LUST) Cleanups for a cumulative
           total of 271,000 cleanups since 1987.

In 2000     Complete 21,000 Leaking Underground Storage Tank (LUST) Cleanups for a cumulative
           total of 250,000 cleanups since 1987.

In 1999     EPA completed 25,678 LUST cleanups.

Performance Measures:


LUST cleanups completed.

LUST cleanups in Indian Country.

Baseline:   EPA completed a total of 228,925 LUST cleanups from 1987 through 1999, which includes
           a total of 478 LUST cleanups hi Indian Country.
FY1999
Actuals
25,678

FY 2000
Estimate
21,000

FY2001
Request
21,000
65

Cleanups
Cleanups
Superfund Site Assessments

In 2001     EPA will continue to emphasize increasing the number of Indian tribes participating in the
           Superfund program, as expressed through the number of tribes supported by Superfund
           cooperative agreements with tribes and intertribal consortia. This will be evidenced by an
           increase in the number of site assessed.

In 2001     EPA and its partners will make final Superfund site assessment decisions on 475 additional
           sites for a cumulative total of 36,633.

In 2000     EPA and its partners will make final Superfund site assessment decisions on 475 additional
           sites for a cumulative total of 36,158.
In 1999     EPA exceeded the target by completing 744 final site assessment decision.
Performance Measures:
Site assessment decisions.

Site assessments (PA/SI) conducted in
Indian country.

The number of tribes supported by cooperative
agreements with tribes/intertribal consortia.
FY1999
Actuals

744
FY 2000
Estimate

475
FY2001
Request

475
                              no target


                              no target
Assessments
                           Assessments
                           Agreements
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Amount of site-specific dollars provided for building
tribal capacity.                                                                    no target    Funding

Percentage of Superfund sites impacting Indian country
where a tribe is involved as either the lead or
support agency.                                                                   no target    Involvement

Baseline:    EPA completed a total of 35,683 final site assessments from 1982 through 1999.


Superfund Removal Response Actions

In 2001     Conduct 275 Superfund removal response actions for a cumulative total of 6,479 removal
            response actions since 1982.

In 2000     Conduct 275 Superfund removal response actions for a cumulative total of 6,204 removal
            response actions since 1982.

In 1999     EPA exceeded the target by conducting 356 removal response actions.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Removal response actions.                           356            275             275        Removals

Baseline:    EPA completed a total of 5,929 removal response actions from 1982 through 1999.


Superfund Cleanups

In 2001     EPA and its partners will complete 75 Superfund cleanups (construction completions) to achieve
            the overall goal of 900 construction completions by the end of 2002.

In 2000     EPA and its partners will complete 85 Superfund cleanups (construction completions) to achieve
            the overall goal of 900 construction completions by the end of .2002.

In 1999     EPA met the target of 85 construction completions.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Construction completions.                           85             85              75         Completions

Baseline:    EPA completed a total of 670 construction completions from 1982 through 1999.


Superfund Cost Recovery

In 2001     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.
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In 2000     Ensure trust fund stewardship by recovering costs from PRPs when EPA expends trust fund
            monies. Address cost recovery at all 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.

Performance Measures:                               FY1999        FY2000       FY2001
                                                   Actuals          Estimate       Request

Address Cost Recovery at all NPL & Non-NPL
 sites w/tot. past costs = or > $200K                    99              100                        Percent

Addressed 100% of SOLs at Cost Recovery Cases
at all NPL and non-NPL sites with total past costs equal
 to or greater than $200,000 and report costs recovered                                  100         Percent

Baseline:    In FY 98 the Agency will have addressed 100% of Cdst Recovery at all NPL & non-NPL sites
            with total past costs equal or greater than $200,000.

Superfund Potentially Responsible Party Participation

In 2001     Maximize all aspects of PRP participation which includes maintaining PRP work at 70% of the
            new remedial construction starts at non-Federal Facility Superfund, and emphasize fairness in the
            settlement process.

In 2000     Maximize all aspects of PRP participation, which includes maintaining PRP work at 70% of the
            new remedial construction starts atnon-Federal Facility Superfund sites, and emphasizing fairness
            in the settlement process.

In 1999     Achieved >70% responsible party participation  in new remedial actions at NPL sites.  Goal met
            with the exception of completing 5 Sect 106 Civil Actions & 2 Remedial Admin Orders primarily
            due to a decline in the no. of sites available for Remedial Design/Remedial Action negotiation
            completions.

Performance Measures:                               FY 1999        FY2000       FY2001
                                                   Actuals          Estimate       Request

Section 106 Civil Actions                             33                                         Agreements

Orphan Share Offers at all eligible work
settlement negotiations.                              100%                                      Sites

De Minimis Settlements                              38              20                         Settlements

Remedial Administrative Orders                      17                                         Orders

Administrative and judicial  actions                                     100                        Actions

Ensure fairness by making Orphan Share
Offers at 100% of all eligible sites                                                     100         Percent


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Provide finality for small contributors by
 entering into De Minimis settlements                                                 18         Settlements

PRPs conduct 70% of the work at new construction starts                                 70         Percent

Baseline:   In FY 98 approximately 70% of new remedial work at NPL sites (excluding Federal facilities)
           was initiated by private parties.

Superfund Prospective Purchaser Agreement

In 2001    Continue to make formerly contaminated parcels of land available for residential, commercial,
           and industrial reuse by addressing liability concerns through the issuance of comfort letters and
           Prospective Purchaser Agreements (PPAs).

In 2000    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.

In 1999    We met our goal of continuing to make formerly contaminated parcels of land available for
           residential, commercial, and industrial reuse by addressing 100% of liability concerns through the
           issuance of comfort letters and prospective purchaser agreements.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Evaluate liability concerns - Prospective
Purchaser Agreement requests assessed                100            100                        Percent

Evaluate liability concerns-100% of
Prospective Purchaser Agreement requests
addressed and report the number of completed
Prospective Purchaser Agreements at the end of the year                                 100        Percent

Baseline:   In FY 98 EPA signed 24 PPAs. A total of 70 PPA agreements have been achieved since the
           guidance was issued five years ago.

Superfund Federal Faeilitfes Compliance

In 2001    Sign Interagency agreements (lAGs) in 18 months or less from final listing on the NPL (but no
           later than 180 days after completion  of the first RI/FS).

In 2000    Ensure compliance with Federal facility statutes and CERCLA Agreements and ensure completion
           of current NPL CERCLA lAGs.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Federal Facilities CERCLA Negotiations                              4                         Negotiations

Federal Facilities Current NPL lAGs                                  6                         NPL lAGs

Percentage of lAGs in place 18 months after final
listing on the NPL.                                                                  100        Percent


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Baseline:    Section 120 of CERCLA establishes the following for all Federal facilities: 1) no later than 6
            months after listing the site on the final NPL, a RLTS shall be started; 2) the RI/FS should be
            completed expeditiously; and, 3) an LAG shall be signed by all appropriate parties 180 days after
            the completion of the RI/FS. EPA prefers to sign lAGs as soon as possible after listing since
            lAGs provide enforceable schedules for the progression of the entire cleanup. As of January 18,
            2000, EPA has signed 142 lAGs where the average time from NPL listing to having an IAG in
            place was 22 months.  The baseline for tracking the 18 month or less goal will be all federal
            facilities listed on the final NPL after October 1,1998,

RCRA Corrective Action

In 2001      172 (for a cumulative total of 821 or 48%) of high priority RCRA facilities will have human
            exposures controlled and 172 (for a cumulative total of 784 or 46%) of high priority RCRA
            facilities will have groundwater releases controlled.

In 2000     172 (for a cumulative total of 649 or 38%) of high priority RCRA facilities  will have human
            exposures controlled and 172 (for a cumulative total of 612 or 36%) of high priority RCRA
            facilities will have groundwater releases controlled.

In 1999      162(foracumulativetotalof477or28%)ofhighpriQrityRCRAfacilitieshavehuman exposures
            controlled and 188 (for a cumulative total of 440 or 26%) have groundwater releases controlled.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

High priority RCRA facilities with human
exposures to toxins controlled,                         162             172             172         Facilities

High priority RCRA facilities with toxic
releases to groundwater controlled.                     188             172             112         Facilities

Baseline:    EPA established a baseline of 1,712 high priority corrective action facilities in January 1999.


Research

Scientifically Defensible Decisions for Site Cleanup

In 2001      Provide technical information to support scientifically defensible and cost-effective decisions for
            cleanup of complex sites, hard-to -treat wastes, mining, oil spills near shorelines, and Brownfields
            to reduce risk to human health and the environment

In 2000     Enhance scientifically-defensible decisions for site cleanup by providing targeted research &
            technical support.

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.
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In 1999     Completed: 1) Statistical Distribution for Selected Exposure Factors; 2) report and software on
            modeling of bipavailability of cadmium at hazardous waste sites; 3) issue paper on pesticide
            degradation in hazardous waste sites; 4) report on software and database for pilot project to
            enhance MIXTOX database.
Performance Measures:
Environmental Research Brief on permeable
reactive barrier of ground water contaminated
with chromium and chlorinated solvents

Using data from the Exposure Factors Handbook,
develop peer-reviewed statistical distributions for
selected exposure factors.

Technical Resource Document for Monitored
 Natural Attenuation in Sediments

Summary Report of Case Studies of Natural
Attenuation of MTBE, a fuel additive, at
Geographically Diverse Locations

Progress report on Field Demonstration of
Chemically-Enhanced Subsurface Dense,
 Non-Aqueous Phase Liquid Extraction Technologies

Superftmd Innovative Technology Evaluation
(SITE) Program Report to Congress.

A report summarizing the key research findings
 methods, models, and factors relating to evaluating
 the risks from the dermal route of exposure.

Review the 20 most common Superfund soil
contaminants and develop eco-toxicity soil screening
levels for wildlife and soil biota for chemicals where
there is sufficient data.

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.
FY1999
Actuals
FY 2000
Estimate
FY 2001
Request
                09/30/2000
                            Document



                            Report



                            Report


                            Report



                            Report




                            Values
                                1           Document

                                1           Report
Baseline:    EPA has made progress toward completing the remediation of many contaminated sites, but cost
            effective characterization, risk assessment,  and timely cleanup of complex sites remains a
            problem. The science and technology are not yet available to enable confident application of
            demonstrated cleanup approaches and site managers and responsible parties often disagree on the
            projected efficacies of various cleanup alternatives, especially for bioremediation. Re-use of
            formerly contaminated sites is increasing with limited guidance on options for managing risk. The
            issues for research are: how can complex sites be characterized to reduce the cost of clean-up
                                                   V-41

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            while ensuring adequate risk reduction; how can risk assessment procedures be improved with
            more extensive coverage of bio-availability; and how can confident use of low-cost, low-energy
            approaches such as natural attenuation and containment (e.g., the use of covers) be improved
            while continuing to provide demonstrated technologies for the wide array of contaminant-site
            combinations.
Brownfiehl Site Assessment Grants

In 2001      EPA will provide additional site assessment funding to 50 communities, resulting in a cumulative
            total of 2,100 sites assessed, the generation of 5,400 jobs, and the leveraging of $L8 billion in
            cleanup and redevelopment funds.

In 2000      EPA will provide additional site assessment funding to 50 communities, resulting in a cumulative
            total of 1,900 sites assessed, the generation of 4,900 jobs, and the leveraging of $1.7 billion in
            cleanup and redevelopment funds.

In 1999      EPA exceeded its goal and reached 307 communities by the end of 1999.

Performance Measures:                               1999           FY2000       FY2001
                                                   Actuals         Estimate       Request

Cumulative leveraging of cleanup and
redevelopment funds.                                               S1.7B          S1.8B       Funds leveraged

Cumulative jobs generated.                                          4,900          5,400       Jobs generated

Cumulative site assessments.                                         1,900          2,100       Assessments

Cooperative agreements to support
Brownfields assessment pilots.                         80                                         Agreements

Baseline:    By the end of 1999, EPA assessed 1,687 sites, generated 4,416 jobs, and leveraged $1,6 billion in cleanup
            and redevelopment funds.


Brownfield Revolving Loan Funds

In 2001      EPA will provide funding for 70 communities to capitalize revolving loan funds, provide funding for 10
           job training pilots, support 10 existing showcase communities and provide funding for 10 additional
            showcase communities, and enhance the Brownfields Federal Partnership.

In 2000      Sign agreements  with 60 communities to capitalize revolving loan funds, and support 16 existing
            Brownfields showcase communities and 10 job training pilots.

In 1999      EPA met its target by supporting  16 existing showcase communities, and provided funding for 68
            communities to capitalize brownfields cleanup revolving loan fends resulting in the award of 45
            cooperative agreements.

Performance Measures:                               1999           FY2000       FY2001
                                                   Actuals         Estimate       Request

Showcase communities.                              16             16             26          Communities

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Cooperative agreements to capitalize
revolving loan funds                            45           60           70        Agreements

Job training pilots.                                          10           10        Pilots

Baseline:   By the end of 1999, EPA will have signed a total of 68 agreements for capitalization of
          revolving loan funds and announced a total of 21 job training pilots.  Sixteen showcase
          communities were announced in 1998.
Verification and Validation of Performance Measures

Performance Measure:  LUST cleanups completed

Performance Database: The Office of Underground Storage Tanks (OUST) does not maintain a
national database.

Data Source: Designated State agencies submit semi-annual progress reports to the EPA regional
offices.

QA/QC Procedures:  EPA regional offices verify  and then forward the data to  the OUST
Headquarters. OUST Headquarters staff examine the data and resolve any discrepancies with the
regional offices. The data are displayed on a region by region basis, which allows regional staff to
verify their data,

Data Quality Review: None.

Data Limitations; Relies on accuracy and completeness of state records.

New/Improved Data or Systems: None.

Performance Measure:   [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:  The headquarters sponsor of the data is responsible for identifying and
defining data elements.  Regional staff are responsible  for reviewing, verifying, and validating site
data in CERCLIS.  To assure data accuracy, the following adrninistrative controls are in place: (1)
Superfund/Oil Implementation Manual (SPIM) - This  is the program management manual which
details what data must be reported; (2) Report Specifications; (3) Coding Guide; (4) Quality
Assurance; (5)QA Third Party Testing;(6)Regional CERCLIS Data Entry Internal Control Plan; and
(7) a historical lockout feature,

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Data Quality Review: Two audits, one by the Office Inspector General (OIG) and the other by
Government Accounting Office (GAO), were done to assess the validity of the data in CERCLIS.
The  OIG audit report "Superfund Construction Completion reporting", No. E1SGF7-G5-0102-
8100030, was performed to verify the accuracy of the information that the Agency was providing
to Congress and the public.

Data Limitations: The OIG report concluded that the Agency "has good management controls to
ensure accuracy of the information that is reported," and "Congress and the public can rely upon the
information EPA provides regarding construction completions."  The GAO's report, "Superfund
Information on the Status of Sites (GAO/RECD-98-241)," estimates that the cleanup status of
National Priority List sites reported by CERCLIS is accurate for 95% of the sites.

New/Improved Data or Systems: In 2001, 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. Also, it will continue
its efforts to share information among the Federal, state and tribal  programs.  The additional
information will further enhance the Agency's efforts to efficiently identify, evaluate and remediate
Superfund hazardous waste sites.

Performance Measure: 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 Information System (RCRIS) is the
national database which supports EPA's RCRA program.  RCRIS 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.
RCRIS has several different modules, including a Corrective Action Module which tracks the status
of facilities that require, or may require, corrective actions.  Progress for  these measures are
recorded in Corrective Action Module.

Data Source: EPA regions and authorized states enter data on a rolling basis.

QA/QC Procedures: For validation and verification within RCRIS, controls include maintaining
a high degree of consistency in data elements over time as well as data screen edits to help ensure
that key data is entered for all facilities. States and Regions, who create databases, manage data
quality control.  RCRIS has a suite of user and System documentation which describe overall
administration of data collection and management activities. Training on use of systems is provided
on a regular basis, usually annually, depending on the nature of systems changes and user needs.

Data Quality Review: GAO-1995 Report of EPA's Hazardous Waste Information System reviewed
whether RCRIS is meeting the primary objective  of helping EPA and states manage the HW
program. Recommendations coincide with ongoing internal efforts (WIN/Informed) to improve the
definitions of data collected, ensure data collected provides critical information and minimize burden
on states.

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Data Limitations:  None identified.

New/Improved Data or Systems: The Agency has spent considerable time in establishing the
baseline for measuring progress on this measure. During 1999 the Agency finalized its baseline and
national guidance for evaluating and documenting environmental indicators.

Performance Measure: [Brownfields] Cumulative site assessments; [Brownfields] Cumulative
jobs generated; [Brownfields] Cumulative leveraging of cleanup and redevelopment funds

Performance Database:  In order to validate the Brownfields performance measure data, the
Outreach and  Special Projects  Staff utilize data input and verification of the Brownfields
Management System (BMS) and the CERCLIS system. The Brownfields Management System is
used to evaluate management, environmental, and economically-related results  such as jobs
generated and acres assessed and cleaned up. BMS uses data gathered from Brownfield pilots'
quarterly reports and from the Regions. The CERCLIS  system records Regional accomplishments
on Brownfields assessments.

Data Source:  Data is entered by EPA headquarters and regional staff on a rolling basis. Data is
derived from grant recipient reports on Pilot and targeted brownfields assessment projects.

QA/QC Procedures: Verification relies on reviews  by Regional staff responsible for pilot
cooperative agreements or Brownfields cooperative agreements and contracts.

Data Quality Review:  "Superfund: Brownfields - Potential for Urban Revitalization" (EPA IG,
March 24,1998). The IG recommended issuance of QA guidance to regional offices and grant
recipients. This has been done. Additionally, the program now requires that regional offices and
grant recipients address components of the guidance in quarterly reports.

Data Limitations:  The Paperwork Reduction Act limits data collection and quality control.
Grants are designed to address recipient-specific objectives, and are thus non-uniform with respect
to reporting data.

New/Improved Data or Systems: EPA is developing standard measures and seeking legal/grants
clearance to require future reporting through cooperative agreement terms and conditions.

Performance Measure: Ensure fairness by making Orphan Share Offers at 100 percent of all
eligible sites.

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data Source:  HQ and Regional  Offices enter data into CERCLIS
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QA/QC Procedures:  Data is entered by Regional personnel and a sample is checked by HQ.

Data Quality Review: The IG reviews the end-of-year CERCLA reports to verify numbers for all
measures.  The process is informal and there are no results to publish.

Data Limitations: None

New/Improved Data or Systems:  None

Performance Measure: Provide  finality  for small contributors by entering into De Minimis
settlements,

Performance Database: HQ maintains a data base specifically to track the number of parties at de
minimis settlements

Data Source: Manual and Automated EPA system.  HQ and Regions enter numbers,

QA/QC Procedures: Data is entered by Regional personnel and a sample is checked by HQ.

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None

Performance Measure: PRPs conduct 70 percent of the work at new construction starts

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data Source: Automated EPA system HQ and Regional Offices enter data into CERCLIS

QA/QC Procedures: To assure data accuracy and control, the following administrative controls are
in place: 1) Superftmd/Oil Implementation Manual (SPIM) - This is the program management
manual which details what data must be reported; 2) Report Specifications — Report specifications
are published for each report detailing how reported data are calculated; 3) Coding Guide — It
contains technical instructions to data user such as regional Information Management Coordinators
(TMCs), program personnel, report owners and data input personnel; 4) Quality Assurance (AQ) Unit
Testing -  Unit testing is an extensive QA check made  current specification; 5) QA Third Party
Testing - Third party testing is an extensive test made by an independent QA tester to assure that the
report produces data in conformance witii the report specifications; 6) Regional CERCLIS Data
Entry Internal Control Plan — The data entry internal control plan includes: a) regional policies and
procedures for entering data into CERCLIS; b) a review process to ensure that all Superfund
accomplishments are supported by source documentation; c) delegation of authorities for approval

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of data input into CERCLIS; and, d) procedures to ensure that reported accomplishments meet
accomplishment definitions; and 7) a historical lockout feature has been added to CERCLIS so that
changes in past fiscal year data can only be changed by approved and designated personnel and are
logged to a change-log report.

Data Quality Review: The IG reviews the end-of-year CERCLA reports to verify numbers for all
measures. The process is informal and there are no results to publish.

Data Limitations: None

New/Improved Data or Systems: None

Performance Measure: Addressed 100% of SOLs at Cost Recovery cases at all NPL and non-NPL
sites with total past costs equal to or greater than $200,000 and report costs recovered

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data Source: Automated EPA system HQ and Regional Offices enter data into CERCLIS

QA/QC Procedures: To assure data accuracy and control, the following administrative controls are
in place:  1) Superfund/O!l Implementation Manual (SPIM) - This is the program management
manual which details what data must be reported; 2) Report Specifications — Report specifications
are  published for each report detailing how reported data are calculated; 3) Coding Guide — It
contains technical instructions to data user such as regional Information Management Coordinators
(IMCs), program personnel, report owners and data input personnel; 4) Quality Assurance (QA) Unit
Testing - Unit testing is an extensive QA check made current specification; 5) QA Third Party
Testing—Third party testing is an extensive test made by an independent QA tester to assure that the
report produces data in conformance with the report specifications; 6) Regional CERCLIS Data
Entry Internal Control Plan — The data entry internal control plan includes:  a) regional policies and
procedures for entering  data into CERCLIS; b) a review process to ensure that all Superfund
accomplishments are supported by source documentation; c) delegation of authorities for approval
of data input into CERCLIS; and, d) procedures to ensure that reported  accomplishments meet
accomplishment definitions; and 7) a historical lockout feature has been added to CERCLIS so that
changes in past fiscal year data can only be changed by approved and designated personnel and are
logged to a change-log report.

Data Quality Review: The IG reviews the end-of-year CERCLA reports to verify numbers for all
measures. The process is informal and there are no results to publish.

Data Limitations: None

New/Improved Data or Systems: None
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Performance Measure:  Evaluate liability concerns - 100 percent of Prospective Purchaser
Agreement requests addressed and report the number of completed Prospective Purchaser
Agreements at the end of the year

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS)

Data Source: Automated  EPA system HQ and Regional Offices enter data into CERCLIS

QA/QC Procedures: EPA will use the end-of-year CERCLIS information to obtain the data to
support these measures, and will conduct a quality assurance audit on a representative sample of the
data against actual settlement documents to ensure the accuracy and validation of the data.

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None

Performance Measure: Federal facility NPL Interagency Agreements (lAGs) -  80 percent of
Federal facility sites will have lAGs in place within 18 months of NPL listing

Performance Database: Comprehensive Environmental Response, Compensation, and Liability
Information System (CERCLIS) Regions enter the dates IAG negotiations are started, completed,
and signed and dates regarding amendments to the lAGs.

Data Source: Automated EPA system — Regions enter the information into CERCLIS.

QA/QC Procedures: HQ and Regions hold two biannual meetings to review the signed and
unsigned  lAGs to confirm accuracy of information entered into CERCLIS

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None

Performance Measure: Deliver the annual SITE Program Report to Congress.

Performance Database: Output measure — No database required.

Data Source: N/A
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QA/QC Procedures:  N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A


      Research

Goal 5 Objective 1

Performance Measure: Deliver the annual SITE Program Report to Congress.

Performance Database: Output measure — No database required.

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Review: N/A

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 cleanups of the leaking underground
storage tanks (LUST).  States and territories use the LUST Trust Fund to administer their corrective
action programs, oversee cleanups by responsible parties, undertake necessary enforcement actions,
and pay for cleanups in cases where a responsible party cannot be found or is unwilling or unable
to pay for a cleanup.   Most states have cleanup funds that cover the majority of owners and
operators' cleanup costs. These state funds are separate from the LUST Trust Fund.

      State LUST programs are key to achieving the objectives and long-term strategic goals. 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 are
made directly to the states to assist them in implementing their oversight and pogrammatic role.
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Superfund

       The Superfund  program  coordinates with many other Federal  and state agencies in
accomplishing its mission. Many of these agencies perform essential services in areas where the
Agency does not possess the specialized expertise.  Currently, the Agency has active interagency
agreements with the Agency for Toxic Substances and Disease Registry (ATSDR), the National
Institute for Environmental Health Sciences (NIEHS), the Department  of Interior (DOI), the
Department of Justice (DOT), 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).

       The services these agencies provide include conducting public  health assessments at
Superfund sites, maintaining toxicology databases for chemicals found at Superfund sites, providing
health education to health care providers, local and national health organizations and state and local
health departments; funding to colleges  and universities for basic research which focuses on
assessing the impacts of chemical mixtures on humans; supporting response preparedness and
management activities to the national response team, regional response teams, on-scene coordinators
and remedial project managers, outreach to states, Indian tribes and Federal natural resource trustee
officials on natural resource  damage assessments;  providing  scientific support for response
operations through coastal resource coordinators in EPA's coastal regional offices and coordination
between 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 supporting the national response system
by providing expertise  in emergency preparedness and administrative support to the regional
response teams and national response team; conducting compliance assistance visits to review site
safety and health plans and programs and developing guidelines and procedures in the composition
of manuals for assessing safety and health at hazardous waste sites; responding to actual or potential
releases of hazardous substances involving the coastal zone,  including the Great Lakes and
designated inland river ports; and litigating and settling cleanup agreements and cost recovery cases
and seeking civil penalties.

       The United States Army Corp of Engineers (USAGE) and the Bureau of Reclamation provide
management and support for design and construction management at  Superfund sites which
contribute to the direct cleanup at many sites. These  Federal partners implement most high-cost
Fund-financed remedial actions, provide on-site technical expertise, and ensure that project
management is consistent between Fund and PRP financed projects.

       The Superfund and Federal facilities enforcement programs work closely with other Federal
agencies (e.g., DOD, DOE, DOI, etc.) to clean up their federal facility Superfund sites. EPA works
with states and Indian tribes as key partners in the cleanup decision-making process at Superfund
Federal and non-Federal sites. At non-Federal sites, states and tribes also conduct site assessments
and response actions.
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       The Agency also works in partnership with states and tribal governments to strengthen state
and tribal hazardous waste programs and improve the efficiency and effectiveness of the nation's
overall hazardous waste response capability.  EPA assists the states in developing their CERCLA
implementation programs through infrastructure support, financial and technical assistance, and
training. Partnerships with states increase the number of site cleanups, improve the timeliness of
responses, and make land available for economic redevelopment sooner, while allowing for more
direct local involvement in the cleanup process. EPA is working to enhance the role of states and
tribes in the implementation of the Superfund program by encouraging their participation in all
aspects of the Federal Superfund program, from site  assessment through remedial design and
construction. Nineteen pilot projects (9 with states and 10 with tribes) are underway to enhance the
role of states and tribes in Superfund.

       Executive Order 12580 delegates certain authorities for implementing Superfund to other
Federal agencies. These responsibilities are carried out in close consultation and coordination with
EPA.  EPA works  with these agencies to ensure compliance with environmental laws and
regulations, and in partnership with the states and tribes, EPA provides effective and efficient
oversight of Federal cleanup programs.  EPA also provides technical and program assistance,
training and outreach for other Federal agency personnel and their contractor; works with other state
and tribal regulators and Federal agencies to develop cleanup priorities and milestones; facilitates
appropriate transfer and  leasing of excess Federal properties; and works with tribal nations to
enhance their technical capabilities. In addition, EPA coordinates with the USAGE, states, and tribes
in me identification and cleanup of more than 9,000 formerly used defense sites nationwide.
Expectations are that EPA will plan an even greater role at these sites in the future.

       EPA serves an active role in programs related to radiation protection for human health and
the environment. EPA plays the lead role developing Federal Guidance for radiation protection as
directed by the President. This Federal Guidance provides a common framework to ensure that the
regulation of exposure to ionizing radiation by all federal agencies is carried out in a consistent and
adequately protective manner.   Furthermore, EPA works through the Interagency Steering
Committee on Radiation Standards, which includes the  Department of Energy,  Department of
Defense,   Department of Health  and  Human Services,  Occupational  Safety  and  Health
Administration, and the Nuclear Regulatory Commission, coordinating the development of radiation
protection standards and guidance.

Brownfields

       The Brownfields National Partnership represents a significant investment in brownfields
communities including more than 100  commitments 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; and job
training efforts from the Department of Labor, the Department of Health and Human Services, the
Department of Education, and the Department of Veterans Affairs. These funds will help clean up
and redevelop nearly 5,000 properties.
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       The centerpiece of the Brownfields National Partnership is the funding of 16 brownfields
showcase communities beginning in FY1998. The Showcase communities were selected to receive
Brownfields assistance from various agencies  including EPA, Department of the Interior,
Department of Justice, many of  the  previously mentioned, as  well as General  Services
Administration, Small Business Administration, to mention a few. EPA and these other Federal
agencies will continue to provide active support to brownfields activities across the country in 2001.
The Agency' s commitment to the project is awarding additional assessment and demonstration pilots
and funding Intergovernmental Personnel Act staff in each of the 16 communities.  In addition, 24
community finalists received funding and technical support from the Agency.  To augment the
success of the Brownfields National Partnership and its continued efforts to clean up and redevelop
brownfields properties, the Agency and its Federal partners will designate 10 additional showcase
communities in 2001.

       The Brownfields program also relies on partnership building with local government, state,
and non-government groups to leverage federal funding with private sector funding. As part of the
brownfields initiative, EPA will continue to provide outreach, curriculum development, job training,
and technical assistance to community residents through cooperative agreements to community-
based organizations, community colleges, universities, and private sector non-profit groups. The
Agency also works with cities, states, federally recognized Indian tribes, community representatives,
and other stakeholders to implement the many commitments. Successful brownfields redevelopment
is proof that economic development and environmental protection go hand 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.  In 2001, EPA will provide funding to  support  50  existing  brownfields
assessment pilot cooperative agreements, provide technical assistance to 16 existing brownfields
showcase communities, sign agreements with 70 new communities  to capitalize revolving loan
funds, provide brownfields communities with targeted brownfields assessments (TB As), 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 hi then- pursuit to redevelop brownfields properties.

RCRA

       The Agency maintains a  close relationship with state  agencies that are authorized to
implement the Resource Conservation and Recovery Act (RCRA) corrective action program. States
are expected to achieve the same level of federal standards as the Agency, including annual
performance goals of human exposures and groundwater releases controlled. As part of the state
grant process, regional offices negotiate with the states the progress in the corrective action program
toward the objective of meeting the GPRA goals.
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      Research

      The Agency spends substantial effort in coordinating with other agencies to conduct risk
management and exposure research. These activities include work with the Department of Defense
(DOD) in their Strategic Environmental Research and Development Program (SERDP) and the
Environmental Security Technology Certification Program (ESTCP) programs.  Other groups
include the Department of Energy (DOE) and the Office of Science and Technology and the
Integrated Treatment  Remediation Demonstration  (ITRD)  Program.   Collaborative field
demonstrations (e.g., through the SITE program) and laboratory research with DOD, DOE, andjhe
Department of Interior (DOI) (particularly the U.S. Geological Survey) to improve characterization
and risk  management options for dealing with  subsurface contamination are  also conducted.
Collaboration with external organizations allows the Agency the needed flexibility in dealing with
complex  waste/site characterization and remediation  problems and, consequently, improve the
Agency's ability to meet its objective of quicker and more cost-effective site cleanups.

      Characterization and  monitoring research at EPA are also being coordinated with other
Agencies. The unique controlled spill field research facility was designed in cooperation with the
U.S. Bureau  of Reclamation and is being  constructed and operated in  conjunction with the
Department of Energy near the town of Mercury at the Nevada Test Site.  Geophysical research
experiments and development of software for  subsurface characterization and detection  of
contaminants are being conducted with the USGS and DOE's LBNL (Lawrence Berkeley National
Laboratory).

      The Agency works with The National Institute of Environmental Health Sciences (NIEHS)
to advance fundamental Superfund research. NIEHS manages a large basic research program
directed at Superfund issues.  The program is mandated in CERCLA, which establishes a "basic
university research and education program" in NIEHS,  and further reinforced  in Superfund
Amendments and Reauthorization Act (SARA), where the intent of Congress is clarified, indicating
that the program "may include" the following:  epidemiologic and ecologic studies, advanced
techniques for detection, assessment and evaluation  of effects on human health of hazardous
substances; methods to assess the risk to human  health presented by hazardous substances; and
methods and technologies to detect hazardous substances in the environment and basic biological,
chemical, and physical methods to reduce the amount and toxicity of hazardous substances.
Statutory Authorities

•      Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) as
       amended by the Superfund Amendments and Reauthorization Act of 1986,42 U.S.C. 9601-
       9657

*      Solid Waste Disposal Act as amended by Hazardous and Solid Waste Amendments of 1984
       to the Resource Conservation and Recovery Act of 1976
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Defense Base Closure and Realignment Act 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.

Waste Isolation Pilot Plant (WIPP) Land Withdrawal Act (Public Law 102-579 as amended
by Public Law 104-201)40 CFR194: Criteria for the Certification and Recertificatlon of the
WIPP's Compliance with the Disposal Regulations (1996): Certification Decision (1998).

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


Research

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

Resource Conservation and Recovery Act (RCRA)

Oil Pollution Act (OPA)
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                          Environmental Protection Agency

         2001 Annual Performance Plan and Budget Congressional Justification

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

Objective # 2: Prevent, Reduce and Respond to Releases, Spills, Accidents or Emergencies

       By 2005, over 282,000  facilities will be managed according to the  practices that prevent
releases to the environment, and EPA and its  partners will have the capabilities to successfully
respond to all known emergencies to reduce the risk to human health and the environment.
                                 Resource Summary
                                 (Dollars in thousands)

Prevent , Reduce and Respond to Releases,
Spills, Accidents or Emergencies
Environmental Program & Management
Science & Technology
State and Tribal Assistance Grants
Leaking Underground Storage Tanks
Oil Spill Response
Hazardous Substance Superfund
Total Workyears
1999
Enacted
$161,528.0
$91,639.9
$8,345.8
$38,038.4
$34.9
$13,372.8
$10,096.2
857.2
FY 2000
Enacted
$170,513.3
$98,517.3
$8,584.7
$39,438.4
$0.0
$13,477.0
$10,495.9
902.9
FY2001 FY2001Req.v.
Request FY 2000 Ena.
$179,172.1
$104,860.3
$9,306.5
$39,438.4
$0.0
$14,201.1
$11,365.8
872.8
$8,658.8
$6,343.0
$721.8
$0.0
$0.0
$724.1
$869.9
(30.1)
Key Programs
(Dollars in thousands)


RCRA Permitting
RCRA State Grants




1999
Enacted
$13,325.0
$27,493.7
FY2000
Enacted
$15,724.4
$27,493.7
FY2001
Request
$16,311.6
$27,493.7
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Waste Combustion

Risk Management Plans

Federal Preparedness

Community Right to Know (Title III)

Underground Storage Tanks (UST)

UST State Grants

Oil Spills Preparedness, Prevention and Response

Hazardous Waste Research

Project XL

Common Sense Initiative

Civil Enforcement

Compliance Assistance and Centers

Rent, Utilities and Security

Administrative Services

Regional Management
$6,890.3
$7,254.9
$9,807.5
$4,544.7
$6,378.3
$10,544.7
$11,851.9
$6,167.9
$112.6
$130.0
$1,225.3
$274.9
$0.0
$212.7
$0.0
$4,438.3
$7,242.8
$9,528.2
$4,797.5
$6,203.9
$11,944.7
$11,820.4
$5,379.8
$117.4
$0.0
$1,298.5
$353.4
$7,362.0
$1,263.0
$252.5
$4,677.5
$7,913.5
$10,154.8
$5,137.5
$6,906.4
$11,944.7
$12,560.3
$6,880.8
$126.7
$0.0
$1,360.1
$280.7
$7,983.3
$1,365.6
$122.5
FY 2001 Request

Underground Storage Tank Program

       The goal of this program is to prevent, detect, and correct leaks from underground storage
tanks (USTs) containing petroleum and hazardous substances.  This is done by promoting and
enforcing compliance with the regulatory requirements aimed at preventing and detecting UST
releases.

       In 2001, the Agency estimates that 70% of tanks will be in compliance with EPA/state leak
detection requirements and 93% of USTs will be in compliance with EPA/state December 22,1998
requirements to upgrade, close or replace substandard tanks. Improving compliance with leak
detection requirements will be a major focus for the UST program in 2001 and beyond.  Achieving
necessary and significant improvements hi leak detection rates will require a sustained emphasis by
both EPA and states. For example, a number of issues have been raised by the Administrator's Blue
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Ribbon Panel on the use of oxygenates in gasoline and industry associations concerning leak
detection and improvements needed for leak detection systems. EPA and the states will need to
address these significant concerns over the next several years to ensure leak detection systems are
operating properly.

       The Agency believes that compliance with requirements to upgrade, replace or close
substandard tanks will reach 93% by the end of 2001, largely because many states have laws and
enforcement tools that go well beyond those available to EPA. This includes laws in 20 states which
allow them to prevent delivery of fuel to noncompliant facilities. In addition, distributors in many
other states have decided not to deliver fuel to noncomplying facilities for liability reasons.  The
states are the primary enforcers of the UST program requirements. EPA will continue to assist and
augment state inspection efforts which assess compliance with requirements for leak detection,
corrosion protections, spill containment, and overfill prevention. These efforts will ensure increased
compliance.

       A priority in the UST program over the next several years is to ensure that USTs are managed
properly and meet appropriate technical requirements.  To help ensure compliance with UST
requirements, the Agency will continue to assist states and tribes. EPA will place a special emphasis
on boosting owners' and operators' low compliance rate with leak detection requirements.

       The Agency will also continue to promote compliance with the 1998 deadline requirements
for upgrading, replacing or closing substandard tanks, as well as study the causes of releases from
new and upgraded UST systems and establish partnerships with states and industry to improve tank
owners and operators' operation and maintenance procedures. In addition, the Agency will continue
its evaluation of EPA's technical requirements for UST systems to understand how well they are
working and how they might be improved.  This evaluation will have a definite impact on the
prevention of releases. States have identified this evaluation as one of the most important activities
that the UST program and the states need to undertake in the near future.

       In 2001, the Agency will continue to coordinate its UST/ methyl tertiary butyl ether (MTBE)
release prevention workshops with states, industry and the private sector. The UST program's
efforts to prevent and detect leaks from underground storage tanks are consistent with and advance
the recommendations of the Agency's Blue Ribbon Panel on the Use of Oxygenates in Gasoline
(July 1999). Financial support will continue to be provided through UST state grants to help states
address low leak detection compliance and ensure that USTs are in compliance with the 1998
deadline.

       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.  Demonstration grants under Resource Conservation
and Recovery Act (RCRA) Section 8001, and non-demonstration grants under RCRA Section 2007
(PL  105-276) will continue to help Tribes develop the capability to administer UST programs.
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      In 2001, the Agency will continue to support the USTFields initiative, which is an effort that
focuses attention on abandoned or idled industrial and commercial UST facilities. Some of these
facilities are gasoline service stations and automobile lots (i.e., rental car lots) where expansion or
redevelopment is complicated by real or perceived environmental contamination. USTFields are
located in urban, suburban, and rural areas throughout the country. The Agency is committed to help
EPA Regions and state and local governments collect and distribute information on current or
completed efforts to revitalize abandoned tank properties. The Agency's UST activities will include
helping states document and disseminate challenges facing state and local regulatory program efforts
to redevelop abandoned or idle USTs, and a comprehensive inventory of where USTFields are
located.  The Agency will also help to build partnerships between parties interested in redeveloping
UST sites, and facilitate outreach through the Agency's web site to share lessons learned among
Federal agencies, states, municipalities, and communities.

Chemical Emergency Preparedness and Prevention

      The Agency's Chemical Emergency Preparedness and Prevention (CEPP) program addressees
the risks associated with the manufacture, transportation, storage and use of hazardous chemicals to
prevent and mitigate chemical releases. The program also implements right-to-know initiatives to
inform the public about chemical hazards and encourages actions at the local level to reduce risk.
All Americans benefit from an effective chemical safety program because hazardous chemical
substances are virtually everywhere and chemical accidents are an ever-present danger. A calendar
year 1996 analysis  estimated that more than 400  releases of extremely toxic and flammable
chemicals resulted in two dozen fatalities, 1,000 injuries, thousands of evacuations, and more than
$1 billion hi damages.

      This will be the second year that Federal, state, and local agencies and the general public will
have access to large amounts of information on the presence of chemicals in every community and
the potential hazards those chemicals present.  Section 112(r)  of the Clean Air Act requires an
estimated 36,000 facilities to develop comprehensive Risk Management Plans (RMPs) and submit
them to EPA, state agencies, and Local Emergency Planning Committees (LEPCs). This is fewer
than the 66,000 facilities originally required to report under this program. The reduction is the result
of the Chemical Safety Information, Site Security and Fuels Regulatory Relief Act which removes
certain flammable fuels from coverage by the RMP program. The law was signed by the President
on August 5,1999.

      The same Chemical Safety law directed that worst-case scenario information included in the
off-site consequences portion of the RMPs be withheld for one year, pending an assessment of the
risk and benefits of making such information public and federal regulations for appropriate public
disclosure.  The President has delegated these tasks to EPA and the Department of Justice (DOJ).
EPA and DOJ will develop and issue  these rules in 2000  (per statute). The Agency expects to
implement the rules hi 2001.
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      Each RMP identifies and assesses the hazards posed by on-site chemicals. It also provides
a five-year facility accident history and outlines an accident prevention program and an emergency
response plan. The statutory deadline for filing RMPs was June 1999. While the numbers are still
being tallied, EPA estimates that about half of those required to submit RMPs have done so, A
program priority in 2001 will be to continue efforts to increase compliance with the RMP reporting
requirement, particularly among the small business community. This will be done by providing a
combination of technical assistance, outreach and training.

      EPA will continue to promote implementation of the RMP program during 2001.  The
Agency believes individual  states are best suited to implement the program because they benefit
directly from its success and they often have established relationships with the communities that may
be at risk. EPA also believes that as most facilities achieve compliance, this may serve as an
incentive for states to seek delegation. The Agency will continue to emphasize flexibility in how
states will be authorized to receive delegation. One new approach EPA will undertake is to increase
participation by  encouraging states to partially implement the RMP program.  EPA will work to
secure agreement and help them to develop and manage individual program components. Some
examples include outreach and compliance programs, facility training., and audits/inspections.

      In addition to this effort,  EPA will continue to provide states a combination of grant
assistance, technical support, training, and other outreach services to help them fully develop and
      States implementing the RMP Program
                                                                         RMP
                                                                         States
                                                                         Non-
                                                                         RMP
                                                                         States
            1998     1999    2000     2001     2002
                                   Years
2003
receive delegation of the program. The Agency's goal is to delegate RMP program authority to an
additional seven states during 2001, bringing the total number of authorized states to 17.
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      Because the Clean Air Act mandates a RMP program for every state, EPA Regional offices
will continue to manage RMP programs in those states that have not accepted delegation. In 2001,
the Agency will begin to implement an active audit program which will include a combination of
audit reviews and on-site inspections. The audit program is required by the law to ensure that facility
operations are conducted in a safe and responsible manner. Audit selection will be based upon
several criteria, including accident history, patterns of noncomplianee, types and quantities of
chemicals or geographic location. In the enforcement area, program efforts will begin to focus on
the quality of the RMP, as well as on facilities that fail to submit reports.

      EPA will continue to analyze the extensive data hi the RMPs.  The Agency will examine
trends and patterns in such areas as industry sector, facility size, geographic region, and chemicals.
In particular, EPA will employ epidemiological methods to analyze the RMP's five-year accident
history data to explore accident risk factors and precursors and will complete regulatory action on
changes resulting from a review of the RMP chemicals list.

      One of EPA's vital roles is to help communities implement accident prevention programs.
LEPCs (established under the Emergency Planning and Community Right to Know Act, EPCRA)
serve as the focal point for discussions on reducing chemical risks at the local level. Under the RMP
program, LEPCs take information on how facilities are reducing the risk of accidents and integrate
it into their emergency plans and community right-to-know programs.  In 2001, EPA will support
LEPC efforts by providing tools, technical assistance and guidance to better enable them to use the
risk information.  In the regulatory area, the program expects to undertake the second phase of
streamlining of EPCRA's reporting requirements. EPA will also continue an initiative to improve
and enhance emergency preparedness and prevention in Tribal communities.

      Funding of the independent Chemical Safety Board (CSB) has placed new 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 completed a memorandum of understanding with the Board
hi 1999 that delineated roles and working relationship. As a result, the Agency expects to conduct
activities in the following areas:

•     Responding to Board recommendations that result from investigations. EPA anticipates each
      CSB investigation may  lead to several recommendations which may require program
      adjustments and modifications;

*     Gathering field information to understand how to prevent accidents and to support decision-
      making on CSB recommendations; and

•     Taking prevention actions and providing outreach to industry, government and the public to
      enhance application of chemical safety measures. The program will focus on lessons learned
      from accidents and issue case studies and chemical safety alerts to reduce the risk of future
      accidents.
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      EPA also  supports a highly effective national emergency preparedness  and response
capability. Under the National Response Team (NRT)/Regional Response Team (RRT) and the
Federal Response Plan (FRP), the Federal government helps states and cities address major incidents
that are beyond their capabilities.  EPA chairs the NRT and co-chairs the 13 RRTs throughout the
U.S. which integrates actions of all Federal partners to prevent, prepare for and respond to hazardous
substance and petroleum emergencies.

       In 2001, the NRT will implement and test an incident command/unified command system
to coordinate response management for all levels of government and the private sector during major
incidents. In addition, the NRT will broadcast lessons learned about major incidents and exercises,
and emergency response procedures on the NRT/RRT Internet site. The NRT will also continue to
promote interagency training programs in crisis management response, communicate information
on new safety  and cleanup technologies, implement mechanisms to coordinate radiological and
hazmat response, and provide technical assistance for incidents occurring outside the United States.

      The Federal Response Plan (FRP) provides for the delivery of Federal assistance to states to
help them deal with the consequences of significant disasters. EPA has the lead responsibility for
the plan's Emergency Support Function covering hazardous materials.  An important priority under
the FRP is to protect public health and the environment from terrorist threats. Under the program,
EPA participates with other Federal agencies to implement national security and  anti-terrorism
requirements. They include the following:

•     Continuity of Operations  (COOP)  Program.  PDD #67, requires all Federal Executive
      Branch  departments and  agencies  to have in place a viable capability to ensure the
      performance of their essential functions during any emergency or situation that may disrupt
      normal operations.  During 2001, EPA will place emphasis on individual and team teaming,
      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
      response team. The Agency will also continue to review and refine its COOP plans.

*     Critical Infrastructure Protection, Presidential Decision Directive (PDD) #63, requires
      EPA (and other Federal agencies) to strengthen Agency and stakeholder defenses against
      assaults on critical infrastructures, including cyber systems.  EPA  also has the  lead
      responsibility for coordinating plans and activities with the water supply sector. In 2001, EPA
      and other Agency partners will concentrate on implementing industry and  EPA plans to
      address the problems, gaps and vulnerabilities that were cited in initial program assessments.

*     Anti-terrorism Emergency Preparedness. As directed under PDDs #39 and #62, EPA
      participates in the crisis and consequence management phases of terrorist incident response
      exercises.  We also prevent and prepare for deliberate releases and coordinate with other
      Federal agencies to ensure that anti-terrorism activities are integrated with state and local
      emergency  preparedness  and response programs  and organizations (including State
      Emergency Response Commissions, LEPCs andthe National Response System).
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      In 2001, EPA's anti-terrorism program will continue to focus on helping stakeholders to
prepare for and respond to nuclear, biological and chemical acts of terrorism. EPA will continue
efforts toward ensuring that response personnel are trained and equipped to respond to weapons of
mass destruction incidents. EPA will also work with its Federal partners to develop federal, state and
local planning capabilities, as well as help them to understand the  interfaces between the FDD
mandates, National Response System and the national domestic preparedness program for terrorist
events. These activities will be conducted as part of the Federal government's initiative to ensure
that state and local emergency officials are adequately trained.

Oil Spills

      The goal of the oil spill program, which is authorized by the Clean Water Act (CWA) and
been in effect for over twenty-five years, is to protect public health and the environment from
hazards associated with a discharge or substantial threat of a discharge of oil or hazardous substances
into navigable waters, adjoining shorelines, and exclusive economic zones of the United States. The
program was strengthened by the Oil Pollution Act of 1990 (OP A), a statute passed in response to
increasing frequency and severity of accidental oil discharges into the environment, such as the
Ashland tank collapse and the Exxon-Valdez spill.

      Each year more than 24,000 oil  spills occur in the United States, approximately over half of
them within the inland zone over which EPA has jurisdiction. On average, one spill of greater than
100,000 gallons occurs every month from approximately 450,000 EPA-regulated oil storage facilities
and the entire oil transportation network. Oil spills 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.

      The oil spill program prevents, prepares for, and responds to oil spills, as mandated and
authorized in the CWA and OPA. EPA protects inland waterways through oil spill prevention,
preparedness, and enforcement activities associated with the 450,000 non-transportation-related oil
storage facilities EPA regulates.  In addition to its regulatory responsibilities, EPA serves as the lead
responder for the inland zone for all spills, including spills from outside of its regulated universe,
such as spills from pipelines, trucks, and other transportation systems (regulated by the Department
of Transportation). EPA accesses the Oil Spill Liability Trust Fund (OSLTF), administered by the
United States Coast Guard, to fund its  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. In the event of a spill, the Oil and Hazardous Substances National
Contingency Plan (NCP) is the Nation's blueprint for the federal response to discharges of oil and
hazardous substances.  EPA's regulatory framework is chiefly composed of the Spill Prevention,
Control, and Countermeasures (SPCC) regulation and the Facility Response Plan (FRP) regulation.
                                          V-62

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      All regulated oil storage facilities must prepare SPCC plans. These facilities, which range
from hospitals and apartment complexes storing heating oil to large tank farms, include any oil
storage  facility with aggregate aboveground storage capacity1 greater than 1,320 gallons, or
underground storage greater than 42,000 gallons (not otherwise subject to the UST program
requirements). Four hundred additional facilities will be in compliance with SPCC provisions in
2001 as a result of EPA's activities. In addition, certain high-risk oil storage facilities must prepare
FRPs to identify and ensure the availability of resources  to respond to a worst case discharge,
establish communications, identify an individual with authority to implement removal actions, and
describe training and testing drills at the facility. In 2000 and 2001, EPA will review a small number
of FRPs, with EPA's review triggered by a large spill, or a  spill at a particularly high risk facility.

      The OP A also requires EPA to develop Area Contingency Plans (ACPs), in conjunction with
area committees (state, local and Federal officials in a given geographic location). The ACPs detail
the  responsibilities of various parties in the event of a response,  describe unique geopapbical
features of the area covered, and identify available response equipment and its location.

      In 2001, EPA will implement the revised SPCC regulation for a full year. The new SPCC
regulation is  a performance-based rule, heavily  reliant upon industry standards, and as such,
represents 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 with the new rale.  The Agency must also train its
own workforce of inspectors and other staff to assist in compliance assistance and enforcement of
the  new regulation. 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 spills within the inland waterways. Over the past four years (1996-1999),
EPA has received and evaluated approximately 35,000  oil  spill notifications, served as lead
responders at approximately 358 oil spills, and shared response responsibility with another parry at
approximately 675  responses.

Resource Conservation and Recovery

      The Agency' s Resource Conservation and Recovery Act (RCRA) program accounts for about
13,900 of the facilities addressed by this objective. The RCRA program reduces the risk of human
exposures to hazardous, industrial  nonhazardous, and municipal solid wastes.   Every year,
municipalities and industries generate approximately 217 million tons of municipal solid waste, 270
million tons of industrial hazardous waste (including waste  waters), and more than 7.6 billion tons
of industrial nonhazardous waste. A combination of regulations, permits and voluntary standards
and programs ensure to the greatest extent possible safe management of the various wastes. Without
the  RCRA program, new contaminated waste sites, possibly  Superfund sites, would result from
mismanagement of these wastes, threatening nearby communities. In 2001, the focus of the RCRA
program will be on reducing risk, tailoring management practices to the potential risks of specific
       'Above ground storage in containers less than 55 gallons are exempt

                                          V-63

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wastes, and on creating efficiencies through  streamlining procedures and waste management
procedures and systems.

      The main vehicle for hazardous waste program implementation is the issuance of RCRA
hazardous waste permits. The RCRA program reduces the risk of exposures to dangerous hazardous
wastes by establishing a "cradle-to-grave" waste management framework. This framework regulates
the handling,  transport, treatment, storage, and disposal of hazardous  waste, ensuring that
communities are not exposed to hazards through improper management.  Significant progress has
been made by hazardous waste management facilities having appropriate controls  in place to
minimize the threat of exposure to hazardous substances. To date, 47 of 50 states, Guam and the
District of Columbia are authorized to issue permits. The authorization of states for all portions of
the RCRA program, including regulations that address waste management issues included in permits,
is an important goal. The Agency and the states have now permitted almost all operating landfills
and land disposal sites, as well as most commercial incinerators. Permits for storage and treatment
facilities as well as post-closure facilities comprise the largest remaining workload. In a rule making
designed to simplify the permitting process for lower-risk treatment and  storage facilities, the
Agency will propose, in 2000, the standardized permit. The final rule will be promulgated in 2001.
During 2001, the Agency will provide technical assistance to states that are authorized to implement
the RCRA program, including site specific assistance, regulatory interpretation and program
guidance.  The Agency will also continue implementation efforts in those states not authorized to
conduct permitting activities.

      In line with efforts to better calibrate risk and regulatory standards, the Agency is developing
concentration-based exemptions within the Hazardous Waste Identification Rule (HWIR-Waste).
This proposal  will provide a framework to  identify lower-risk waste currently regulated under
Federal hazardous waste requirements (Subtitle C) that could safely be managed as nonhazardous
waste. Under this proposal, generators of listed hazardous wastes that meet the standards would no
longer be subject to the hazardous waste management system.  Generators would therefore have a
reduced management burden for lower  risk wastes. In 2001, the Agency will be working toward
developing a rule proposal by FY 2002.
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  Progress Towards  the  RCRA  Goal
           for Safe Waste Management at Hazardous W aste F aciiities
Percentage
of Facilities
with
A p proved
Controls in
Place
100%
90%
80%
70%
60%
50%
40%
50%
20%
10%
n %

i

... T^" <>«*_Jis-- 	 *vn«
* f « af ' < 13 SU 	
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A nnual Targets






                              2000       2001
                              Fiscal Year
      EPA is conducting a review of a basic underlying tool of the hazardous waste program, the
toxicity characteristic leach procedure (the TCLP). This test is used in decisions as to which wastes
are hazardous and to evaluate the effectiveness of waste treatment  While the test works quite well
for its original intent, some regulated entities believe the current test overestimates the hazard posed
if their wastes are disposed of in industrial landfills. In other cases, EPA has recognized that some
industrial waste landfills create conditions in which the TCLP will underestimate the hazards posed
by certain wastes and could result in treatment that actually increases the leaching of hazardous
constituents in such industrial or hazardous waste landfills. In F Y2000, EPA will evaluate a number
of different leaching tests and begin the process of developing alternative approaches based on a
review in 1999  of scientific research to date.  In 2001, EPA intends to continue methods
development work and may be able to begin field work and laboratory validation testing to allow the
Agency to determine how to better tailor the regulatory uses of leach tests.

      In addition, EPA needs to look beyond risks to groundwater or from combustion, to better
consider the role of the RCRA program in controlling air releases of toxic chemicals from non-
combustion units, such as air emissions from industrial wastewater treatment units. In 1998, an EPA
study concluded that there might be significant risks if certain chemicals are present in typical waste
management units. In conjunction with other work in EPA on air toxics, the RCRA program will
closely review whether or not RCRA hazardous waste regulations should play a role in controlling
key air toxics concerns.  In 2000, EPA will identify and  start to analyze available data on the
occurrence of toxic chemicals of potential concern in waste management units. In 2001, the Agency
will complete further analysis and policy evaluation of whether  RCRA regulation would be an
effective complement to Clean Air Act actions to control the most problematic air toxic emissions.

      The Land Disposal Program Flexibility Act of 1996 requires the Agency to conduct a study
of "decharacterized" hazardous wastes (hazardous wastes which have been treated or mixed with
                                         V-65

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other waste waters to the point where they no longer meet the hazardous waste characteristics)
managed in  surface impoundments regulated under the Clean Water Act. The Agency is also
required, under a consent decree, to conduct a study of "non-decharacterized" waste managed in
surface impoundments. In March 2001, the Agency will complete the study which will quantify
probability of human health and  ecological effects attributable to exposure from  hazardous
constituents  managed  in industrial surface impoundments, identify the most significant factors
influencing the probability of those effects, and compare the risk results of the decharacterized waste
impoundments with the risk result of non-decharacterized wastes.

      In 2000, the Agency's RCRA waste identification program  will produce a final  listings
determination rule associated with chlorinated aliphatics, and will propose a listings determination
rule for industrial wastestreams generated during the production of inorganic chemicals. In 2001,
the Agency will finalize the listings determination rule for inorganic chemicals and propose a listings
determination rule for industrial wastestreams generated during the production of paints.

      The Hazardous Waste Minimization and Combustion Strategy outlines the Agency's plans
to ensure that hazardous waste combustion in incinerators and Boilers and Industrial Furnaces (BIFs)
is safe and reliable. Rulemakings designed to reduce the emission of hazardous  air  pollutants,
including dioxins, furans and toxic metals, will improve the quality of life (especially for the more
vulnerable, including children), as well as limit the number of people and areas exposed to releases
from hazardous waste combustion facilities. To reduce the burden on the Agency and the regulated
community, the Agency has combined its efforts and is developing these rules primarily under the
Clean Air Act.

      Finalized hi 1999, the Phase I combustion rule addresses revised standards for hazardous
waste incinerators and cement and lightweight aggregate kilns that burn hazardous waste. The
Maximum Achievable Control Technology (MACT) rule will mean an air permit for hazardous
waste combustion facilities using streamlined procedures for industry and state implementors. The
Agency will begin its Phase I implementation efforts in 2000 with the development and publication
of guidance and technical assistance documents. Implementation efforts, primarily in the form of
technical assistance to the regions, states and industry, will continue in 2001  as several key
milestones are reached. The Agency estimates that most facilities will demonstrate compliance with
the standards and transition from RCRA to CAA air emissions permitting in 2001 and F Y 2002 and
expects, therefore, that technical assistance will be critical during this time. In 2001, the Agency will
continue efforts to pursue development of the Phase II rule, which will  cover emissions from
hazardous waste burning boilers.

      The Agency will continue its work to reduce long-term risks from particularly "hard-to-treat"
wastes.  These include mercury, arsenic, and other heavy metals, both hi process wastes as well as
hi contaminated soils.  During 2001, the Agency will propose improvements on mercury treatment
based on the results from its Advance Notice of Proposed Rule Making (ANPRM) in mercury,
published hi mid-1999. Also during 2001, the Agency will analyze information from the public and
                                         V-66

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technical experts and advance toward issuing a final rule and guidance on sound and cost-effective
means of mercury treatment that avoid the high costs of incineration.

      In 2001, the Agency will be completing steps to address potential risks associated with the
use of hazardous waste in fertilizers. In 2000, EPA plans to propose revised RCRA standards for
recycling of hazardous waste in fertilizers that provide a more consistent and appropriate regulatory
framework, while ensuring protection of human health and the environment. Final standards will be
issued in early FY 2002.

      As part of the Agency's efforts to streamline RCRA procedures and systems, EPA plans to
propose major changes to the hazardous waste manifest in 2000. The Agency expects to propose
automation of the RCRA manifest and changes to the manifest form to reduce paperwork burden on
hazardous waste generators. In addition, EPA expects to streamline the regulatory requirements for
managing utility waste generated at remote sites. In 2001, EPA will begin development of the final
rule, including reviewing and responding to public comments. The Agency expects to complete the
final manifest rule in FY 2002.

      In 2001, the Agency will examine potential RCRA improvements in site-specific projects
initiated under the Project XL program.  Project XL encourages experimentation with alternative
regulatory requirements that may yield superior environmental results. Currently, there are 11 XL
Projects with RCRA components. Several involve experimenting with more flexible, performance-
based regulatory requirements for industries (such as public utilities and laboratories) that generate
small quantities of hazardous wastes at numerous locations.

      The Agency is also working to reduce risks — both known and unknown — from industrial
nonhazardoiis waste, also known as Industrial D  waste.  Manufacturing facilities generate and
dispose of 7.6 billion tons of industrial nonhazardous waste on a site each year.  In 2000, the RCRA
program will work with states in reviewing comments on draft guidance issued in 1999.  This
guidance addresses a range of issues related to the management of industrial nonhazardous waste,
including groundwater  contamination, air emissions resulting from solid waste disposal, and
alternatives to waste disposal, such as recycling and waste prevention. The recommendations in
these voluntary guidelines incorporate substantial flexibility for a broad range of approaches for
dealing with a diverse set of waste streams which pose varying degrees of risk in various site-specific
situations.  In 2001, in conjunction with the states and a focus group comprised of the states,
industry, and the environmental community, the Agency will finalize the guidance on planning,
designing, constructing, and operating new solid waste management facilities at industrial sites that
generate nonhazardous solid wastes.

      In 2001, the Agency will complete the tailored regulations applicable to the management of
cement kiln dust that were proposed in 1999 or announce its reliance on other approaches described
in the proposal. These regulations are being developed to provide substantial flexibility in how
cement wastes are managed to ensure protection of human health and the environment.
                                         V-67

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      The Agency works with other Federal agencies, states, tribes and industry to promote safe
handling of wastes from mining, oil and gas production, and utilities industry. In 2000, the Agency
will complete the fossil fuel regulatory determination and will begin monitoring progress made by
the utility industry in rectifying certain deficiencies  identified in the  regulatory determination,
particularly with regard to management of pyrite wastes and wastes from oil-fired boilers managed
in surface impoundments to ensure sufficient progress to justify continuation of the Bevill exemption
for these wastes. In 2001, the Agency will begin its follow-up activities related to the regulatory
determination.

      In 2001, the Agency will complete the review of its solid waste landfill criteria, required by
the Small Business Regulatory Enforcement Fairness Act, and announce those areas in which it will
consider revising the regulations to provide additional flexibility for small landfills and others so that
compliance is less costly and easier to achieve.

      Although regulatory programs addressing landfills that receive municipal solid waste (MSW)
and nonhazardous waste landfills that receive conditionally exempt  small quantity generator
(CESQG) waste are implemented by the states,  it is  the Agency's responsibility to  establish
minimum national standards with which all facilities must comply. In addition, the Agency must
review and approve state landfill permitting programs to verify that they are capable of ensuring that
all facilities  in  the state comply with the national standards.  Virtually  all municipal landfill
permitting programs should have approval by the end of 2000.  In 2001, the Agency will place
additional emphasis on reviewing state permitting programs for non-hazardous landfills that receive
CESQG hazardous waste.

      Waste management,  particularly  issues  surrounding open  dumps.,  is   a  significant
environmental concern for tribes. In 2001, the Agency will begin the second year of the government-
wide program directed toward closing open dumps and/or ensuring compliance with regulations for
those municipal solid waste landfills in tribal country that wish to remain operating working toward
the most efficient and effective solutions that result in the greatest positive environmental impact.
Agencies participating ip this program include the Bureau of Indian Affairs, Indian Health Service,
the Rural Utility Service and the Department of Defense, the Federal Aviation Administration, the
National Oceanic and Atmospheric Administration and the United States Geological Service. In
2001, EPA will provide funding and technical assistance to at least 10 tribes to assist them in
developing and implementing comprehensive solid waste management programs that will result hi
the closure of their open  dump sites in  compliance  with the municipal solid waste landfill
requirements (following on 1999 efforts with 11 tribes and 10 planned for 2000).  EPA will also
serve as the facilitator for the overall implementation of this program. In the hazardous waste arena,
the Agency provides support to tribal governments to assist them in building capacity for hazardous
waste program management. That support will continue along with the Agency's work with the
Tribal Association for Solid Waste and Emergency  Response.  Technical assistance for tribal
environmental programs in both solid and hazardous waste will be provided by tribal circuit riders.
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      In 2001, the Agency will move forward in its redesign of information management within the
waste program under the Waste Information Need (WIN/INFORMED) Initiative. Working with state
partners, the Agency has been engaged in a multi-year review of the RCRA waste management needs
in an effort to find ways to reduce the reporting burden of data providers by streamlining current
national reporting requirements, coordinating RCRA information system standards with other EPA
data systems, improving the utility of information that is collected, and continuing to promote
electronic reporting wherever feasible.  During 2001, the Agency will begin  implementing
recommendations that will result from Waste Activity Monitoring and the Universe Identification
analyses scheduled for completion in 2000.

      In a related waste management program, EPA will support safe and environmentally sound
radioactive waste management by: maintaining certification and oversight responsibilities for
Department of Energy (DOE) waste disposal activities at the Waste Isolation Pilot Plant; providing
technical support to the Nuclear Regulatory Commission (NRC) in application of pending standards
at Yucca Mountain; coordinating with other Federal agencies including NRC and DOE, and states
to develop mechanisms for control of other industrial materials with a radioactive component; and
developing waste management regulations to facilitate the disposal of low-activity mixed waste by
combining  existing  RCRA  requirements  with traditional  radiological  waste  management
components.   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.

      Under the National Contingency Plan and the Federal Radiological Emergency Response
Plan, EPA assists the regions, states and other  Federal agencies in responding to radiological
emergencies. EPA  provides technical assistance and  guidance on all Superfund Emergency
Response matters and also offer field monitoring expertise, mobile radiochemical analysis, and dose
assessment support and develops Protective Action Guidance for use by state/local authorities to
protect their populations.  EPA performs radiological lab analyses that provide data on dose levels
and potential risks. EPA also operates the Environmental Radiation Ambient Monitoring System
which collects data from 260 monitoring stations  across all 50 states and the American Territories
for drinking and ground water  samples, and air and milk analysis
       Research

       Research to support the Agency's objective of managing facilities to prevent the releases of
contaminants  into the environment is conducted in three major areas: combustion, multimedia
science, and waste management.   This research will: (1)  develop provisional  toxicity values
(reference doses, reference concentrations, cancer slope factors) for waste constituents, which do not
currently have values, so their risks may be quantitatively assessed for delisting decisions and risk
assessments supporting the Hazardous Waste Identification Rule (HWIR); (2) conduct multimedia,
multi-pathway exposure modeling and environmental fate and transport-physical estimation; (3)
identify better ways to manage wastes, focusing on treatment for hazardous waste streams which are
                                         V-69

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either difficult or expensive to treat; (4) determine cost-effective ways to monitor combustion
processes and to minimize releases; and (5) develop more effective systems for solid waste disposals.

      Emissions from waste combustion facilities remain a public concern, and a number of
uncertainties exist about the risks posed by these facilities.  Emissions characterization and control
of toxic contaminants such as dioxin, furans, mercury, lead, cadmium, products of incomplete
combustion (PICs), and combustor risk issues, need further research to reduce uncertainties related
to waste combustion and to provide protection to the public and the environment.

      Hazardous waste combustion research addresses incinerators and industrial systems burning
wastes. It involves the study of reduction of emissions by system design and operation changes, as
well as through the use of add-on controls. Emissions characterization research is an integral part
of this program. In 2001, research on selection of PIC surrogates, PIC measurement techniques, and
bench-scale research on factors influencing poly chlorinated biphenyl (PCB) formation will continue
along with research on characterizing and controlling releases of nickel from waste combustion.

      The HWIR has been proposed 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). It is estimated this approach will likely save hundreds of millions of dollars annually.
Critical new research is needed in order to provide the scientific imderpinnings to ensure the success
of the HWIR. Multimedia based research is in direct support of the regulatory reform efforts under
the HWIR and is related to the development of allowable national "exit levels" (levels below which
a waste or waste stream is excluded from regulation under RCRA Subtitle C) based on sound
scientific data and models. The research is intended to develop a systems approach to modeling and
data management

      Present exposure assessment modeling techniques do not adequately account for many
important contaminant  speciatioii processes that impact the fate of pollutants in natural systems.
Research focuses on reducing the uncertainty associated with exposure assessment model predictions
by providing improved process level data and models for quantifying pollutant interactions in a
variety of natural systems.  Research also provides consultation on sampling/sample design related
to compliance with proposed exit levels in support of the proposed HWIR. The major product for
2001 will be an  update of  the HWIR99 modeling methodology for wastes, in response to public
comments on the 1999 Federal Register Notice, and incorporation of enhanced uncertainty analysis
techniques into the revised methodology.

      Risk assessment research under HWIR will develop provisional toxicity values (Reference
Doses, References Concentrations, Cancer Slope Factors) for waste contaminants which do not
currently have values so their risks may be quantitatively assessed for delisting decisions and risk
assessments. The emphasis will be on assessing priority chemicals identified by the Office of Solid
Waste. In the area of combustion, the Combustion Technical Assistance Center (CTAC) provides
technical assistance for risk assessment at over 200 RCRA combustion facilities.  Assistance is
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provided inresponse to scientific questions, such as those involving human health and environmental
toxicity, that arise while site-specific risk assessments are being conducted on hazardous waste
combustion sites.

       Waste management research will be conducted to improve ways to manage both solid and
hazardous wastes. This includes development and/or evaluation of more cost-effective waste
treatment and containment processes. In 2001, research on bioreactors will continue, along with
studies of the design and effectiveness of RCRA and municipal waste containment units. Technical
support for the cleanup of RCRA active waste management facilities will be expanded in 2001.
FY 2001 Change from FY 2000 Enacted

EPM:
«      (+$2,805,700)  Additional funds provided to support increased costs associated with the
       workforce based on the Agency's reprieing of payroll (EPM).

•      (+$750,000) This increase will provide rands to finalize the Industrial D guidance.

•      (+$550,100) Increase for the Risk Management Program. Additional resources will enhance
       Regional efforts to provide states technical support, outreach, and training to achieve our
       state delegation goal.

*      (+$525,000) This  increase to the Tribal Program will provide additional outreach and
       technical assistance to the tribes through the Circuit Rider program and increase the
       Municipal Solid Waste Capacity building grants.

«      (+$400,000) This increase will provide funds to support Agency efforts to complete the
       tailored regulations applicable to the management of cement kiln dust.

*      (+$200,000) This increase for UST Complianee/MTBE Release Prevention will help EPA
       address low leak detection compliance rates and coordinate other UST compliance release
       prevention activities, such as workshops with states and the private sector to understand the
       effects of MTBE in groundwater and drinking water supplies.

*      (+$205,000) This increase will provide funds to accelerate the testing of different treatment
       standards for high  concentrated mercury wastes.  This work will support PBTI related
       activities.

•      (+$158,900) Increase to UST Tribal Support. This increase reflects the Agency's need to
       increase support for implementation of the UST program in Indian Country.
                                         V-71

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•     (-$158,900) Decrease to UST State Program Approval.  Resources were redirected to the
      UST Tribal support. The Agency continues to approve additional states to operate their own
      programs in lieu of the federal program. This decrease reflects the Agency's need to increase
      support for implementation of the UST program in Indian Country.

•     (+$150,000)  Increase to improve emergency preparedness and prevention in  Tribal
      communities.

      (-5.3 FTE) Decrease reflects the agency's across the board general reduction of FTE in the
      RCRA program and the transfer of the FTE for the EMPACT program.

STAG:
•     (+$ 1,600,000) Increase to UST/MTBE Release Prevention to ensure USTs are in compliance
      with the regulatory requirements for upgrading, replacing, or closing substandard tanks.
      While the Agency will continue to approve and work with  states to operate their own
      UST/LUST programs  in lieu of the federal program, this redirection is meant to  reflect
      increased emphasis in addressing low leak detection compliance rates and related MTBE
      issues.

•     (-$1,600,000) Decrease to UST State Program Approval.  Resources were redirected to
      UST/MTBE Release Prevention.

Superfund:
•     (+$626,600)  Increase will strengthen Federal emergency  preparedness and response
      programs to deal with significant releases of hazardous substances and natural disasters.
      Resources will enable the agency to conduct essential training and exercises and test
      notification mechanisms under the National Response Team/Regional Response  Team,
      Federal Response Plan and Continuity of Operations Program. Included in total increase is
      +$304,500 payroll to cover anticipated workforce level.

Oil:
•     (+$739,900) Increase will improve Oil prevention program (SPCC inspections). Included
      in total increase is +$339,700 payroll to cover anticipated workforce level.
      Research

S&T

•     (+$380,500 +1.5 FTE) This increase represents a transfer of resources from the Superfund
      Appropriation to the S&T appropriation in support of RCRA corrective action (C A) initiative
      activities. Research efforts will focus on providing a wide range of technical support
                                         V-72

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activities to the states, including technical assistance and technology transfer support in
technology, risk assessment, and possibly site characterization activities.

(+$990,600) The R&D program, including infrastructure support costs, is spread across eight
of the ten goals  in the Agency's GPRA/budget structure.  Based on a review of actual
infrastructure utilization under each goal (i.e., utilization of workyears and associated PC&B,
travel, operating expenses, and working  capital fund), adjustments are being made across
goals to more accurately reflect expectations for use in 2001.

(-$950,000) The 2001 request is $950,000 below the  2000 Enacted budget level due to
Congressional earmarks received during  the appropriations process that are not part of the
2001 President's Request.

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Annual Performance Goals

UST Compliance

In 2001     70% of USTs will be in compliance with EPA/State leak detection requirements; and 93%
           of USTs will be in compliance with EPA/State December 22,1998 requirements to
           upgrade, close or replace substandard tanks .

In 2000     90% of USTs will be in compliance with EPA/State December 22,1998 requirements to
           upgrade, close or replace substandard tanks.
Performance Measures:
Percentage of USTs in compliance with the
1998 deadline requirements.

Percentage of USTs in compliance with the leak
detection requirements.
1999
Actuals
FY2000
Estimate
               90%
FY2001
Request


93%


70%
Baseline:   An estimated 65% of USTs were in compliance at the time of the December 22,1998
           deadline.
                          Compliance


                          Compliance
Emergency Planning

In 2001     EPA will develop a strategy to promote development of tribal chemical emergency
           preparedness programs.

In 2001     85 % of facilities will be submitting RMPs, 7 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 2000     75% of facilities will be in compliance with the RMP submission requirements, 3 States (for a
           cumulative total of 10) will be implementing the RMP program, and 180 audits will be
           completed on RMP plans to determine completeness and accuracy.

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:


Percentage of facilities which have submitted RMPs.

RMP audits completed.

Number of states implementing
accident prevention programs.

Number of LEPCs implementing the
1999
Actuals


FY2000
Estimate
75%
180
FY2001
Request
85%
300

Facilities
Audits
                                          States
                                                 V-74

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Clean Air Act 112 (r) chemical
RMP- prevention programs
                                        not available
Development of draft strategy.

Baseline:    This is a new activity and the baseline is being established.
                            LEPCs

                1           Strategy
SPCC Compliance

In 2001
In 2000
400 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 more than 1,900 facilities since 1997).

400 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 more than 1,500 facilities since 1997).
In 1999     EPA exceeded its goal by bringing 774 facilities into compliance with SPCC provisions.
Performance Measures:
                                        1999
                                        Actuals
FY 2000
Estimate
Facilities in SPCC compliance.                        774             400

Baseline:    More than 1,100 facilities were in compliance by 1999.
FY 2001
Request

400
                                                                                   Facilities
Response to Oil Spills

In 2001     Respond to or monitor all significant oil spills in the inland zone. EPA typically responds to
            70 oil spills and monitors 130 oil spill cleanups per year.

In 2000     Respond to or monitor all significant oil spills in the inland zone. EPA typically responds to
            70 oil spills and monitors 130 oil spill cleanups per year.

In 1999     EPA exceeded its goal by responding to 94 oil spills and monitoring response at 229 oil spills.
Performance Measures:
                                        1999
                                        Actuals
FY 2000
Estimate
FY 2001
Request
Oil spills responded to by EPA,                        94              70              70          Spills

Oil spills monitored by EPA.                          229             130             130         Spills

Baseline:    EPA typically responds to 70 oil spills and monitors 130 oil spill cleanups per year.
                                                   V-75

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OPA Enforcement

In 1999     Our goal was that facilities be managed so as to prevent releases into the environment by
            completing 30 OPA Case Referrals and Administrative Enforcement Orders. We missed our
            target by six; 8 compliance orders and 16 OPA case referrals.
Performance Measures:
OPA Case Referrals & Administrative
Enforcement Actions
                                                   1999
                                                   Actuals
                                                  24
FY2000
Estimate
FY 2001
Request
                           Actions
Baseline:    Historically, the Agency has taken civil and criminal enforcement actions at about 30 facilities
            under the Oil Pollution Act. This information will be updated and incorporated into the 2001
            Enforcement and Compliance Accomplishments Report.
RCRA Permitting Standards and Compliance

In 2001      EPA will evaluate RCRA Subtitle C management needs for 36 Federally recognized tribes.

In 2001      106 more hazardous waste management facilities will have approved controls in place to
            prevent dangerous releases to air, soil, and groundwater, for an approximate total of 70% of
            2,900 facilities.

In 2000     106 more hazardous waste management facilities will have approved controls in place to
            prevent dangerous releases to air, soil, and groundwater, for an approximate total of 67% of
            2,900 facilities.

In 1999     The number of hazardous waste management facilities with permits or other approved controls
            in place cannot be accurately reported at this time. We expect to have validated data available
            by the end of 2000.
                                                   1999
                                                   Actuals
                                                   not available
Performance Measures:
RCRA hazardous waste management
facilities with permits or other
approved controls in place.

Propose final streamlined permitting standards

Percent RCRA hazardous waste management
 facilities with permits or other
approved controls in place.

Promulgate final streamlines permitting
standards.
Tribes evaluated.

Baseline:    EPA established a baseline of 2,900 facilities in 1999.
FY2000
Estimate
                                                                  67%
FY 2001
Request
                70%


                1

                36
            Facilities

            Rulemaking



            Facilities


            Standard

            Evaluations
                                                  V-76

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Hazardous Waste Combustion

In 2001     Develop the Phase II rule for reducing hazardous waste combustion facility emissions of
            dioxins, fttrans and particulate matter under the Clean Air Act.

In 2000     Initiate development of the Phase II rule for reducing hazardous waste combustion facility
            emissions of dioxins, furans, and particulate matter under the Clean Air Act.
In 1999     EPA promulgated Phase I of the waste combustion rule.
Performance Measures:


Complete industry scoping studies and issue report.

Complete initial analysis of existing
 EPA databases solicit industry comment.

Promulgate Phase 1 of Waste Combustion Rule

Develop Phase II of Waste Combustion Rule.
                                       1999
                                       Actuals
FY 2000
Estimate

1
FY20Q1
Request
                                       30-Sep-1999
                                                                       1
Baseline:    The Phase I rule for reducing hazardous emissions of dioxins, furans, and particulate matter
            under RCRA was promulgated in 1999.
Research

Scientifically Defensible Decisions for Active Management

In 2001
In 2000
Provide technical information to support RCRA regulatory development for waste
identification, containment, and combustion.

Enhance scientifically defensible decisions for active management of wastes, including
combustion, by providing targeted research and technical support
Performance Measures:
Develop provisional toxicity values for
10 - 20 waste constituents that do not have
 values describing their dose-response
toxicological properties.

Provide journal article on factors that
control Hg speciation in incinerators

Update the HWIR99 modeling methodology
for delisting hazardous wastes, in response to public
comments on 1999 Federal Register Notice
                                       1999
                                       Actuals
FY 2000
Estimate
FY2001
Request
                                                       09/30/2000
            Report


            Analysis

            Rulemaking

            Rulemaking
                            Values
                                                                                   Article
                                                                                   Update
Baseline:    Both the Agency and the private sector have worked for at least a decade to reduce the volume
            of wastes to be managed and to reduce the risks of the related waste management systems. In
                                                  V-77

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            recent years, research has focused on support to Agency initiatives on classifying wastes for
            their appropriate management and disposal (e.g., HWIR, de-listing, listing), to improve the
            ongoing requirement for risk assessments as part of Agency and stakeholder decision-making,
            and to reduce the uncertainties in risk management alternatives, particularly combustion.
            HWIR development is being extended to a wider universe of waste issues and combustion
            remains a priority, particularly for controlling hazardous emissions under different boiler
            operating conditions.

Municipal Solid Waste

In 2001     EPA will provide support and funding to tribes participating in the multi-agency Tribal Open
            Dump Cleanup Project, which will ultimately result in closing or upgrading of existing high
            threat open dumps on Indian Lands.

In 2001     78% (160 for a cumulative total of 2,760 out of 3,536) of existing RCRA municipal solid
            waste facilities in states will have approved controls in place to prevent dangerous releases to
            air, soil, groundwater, and surface water.

In 2000     74% (141 for a cumulative total of 2,600 out of 3,536) of existing RCRA municipal solid
            waste facilities in states will have approved controls in place to prevent dangerous releases to
            air, soil, groundwater, and surface water.

In 1999     Data not available. This is not a mandatory reporting element for states, and EPA is currently
            negotiating with states and state associations to determine the best means to obtain the data.
            We anticipate date by the end of 2000.

Performance Measures:                               1999            FY2000        FY2001
                                                   Actuals         Estimate        Request

Percent of municipal solid waste landfills
(MSWLFs) with approved controls.                    not available     74%            78%       MSW landfills

Open dumps assessed.                                                               no target   Assessments

Open dumps upgraded to comply with Subtitle
D landfill standards.                                                                 no target   Upgrades

Open dumps with contents transferred and
protections against future dumping in place.                                            no target   Sites

Baseline;    The universe was obtained in the 1996 MSWLF survey. EPA is currently negotiating with states
            to determine a means of data collection and verification.

Anti-Terrorism

In 2001     Provide anti-terrorism training to 25 communities.

In 2000     Provide anti-terrorism training to 19 communities.

In 1999     Anti-terrorism training has been completed for 31 communities.

Performance Measures:                               1999            FY2000        FY2001
                                                   Actuals         Estimate        Request

                                                    V-78

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Number of communities receiving
anti-terrorism training                           31           19           25        Communities

Baseline:   This is a new activity and the baseline is being established.

Verification and Validation of Performance Measures

Performance Measure: Percentage of USTs in compliance with the 1998 deadline - Percentage of USTs
in compliance with the leak detection requirements

Performance Database: The Office of Underground Storage Tanks (OUST) does not maintain a national
database.

Data Source: Designated State agencies submit semi-annual progress reports to the EPA regional offices.

QA/QC Procedures: EPA regional offices verify and then forward the data to the OUST Headquarters.
OUST Headquarters staff examine the data and resolve any discrepancies with the regional offices. The data
are displayed on a region by region basis, which allows regional staff to verify their data.

Data Quality Review: None.

Data Limitations: Percentages reported are sometimes based on estimates and extrapolations from sample
data. Relies on accuracy and completeness of state records.

New/Improved Data or Systems: None.

Performance Measure: Percent of RCRA hazardous waste management facilities with permits or other
approved controls in place

Performance Database: The Resource Conservation Recovery Information System (RCRIS) is the national
database which supports EPA's RCRA program.  RCRIS contains information  on entities (generically
referred to as "handlers") engaged in hazardous waste generation and management activities regulated under
the portion of RCRA that provides for regulation of hazardous waste.  RCRIS has several different modules,
including status at RCRA facilities included in the RCRA permitting universe.

Data Source: EPA regions and authorized states enter data on a rolling basis.

QA/QC Procedures: Controls include maintaining a high degree of consistency in data elements over time
as well as data screen edits to help ensure that key data is entered for all facilities. States and Regions, who
create the databases, manage data quality control. RCRIS has a suite of user and System documentation
which describe overall administration of data collection and management activities. Training on use of
systems is provided on a regular basis, usually annually depending on the nature of systems changes and user
needs.
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Data  Quality Review:  GAO  - 1995  Report of EPA's Hazardous  Waste  Information  System.
Recommendations coincide with ongoing internal efforts (WIN/Informed) to improve the definitions of da
collected,  ensure data collected provides critical information and minimize burden on states.

Data Limitations: None identified,

New/Improved Data or Systems: The Agency has spent considerable time reviewing data
associated with permitting at RCRA hazardous waste facilities. During 1999 the Agency finalized
its universe baseline.
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 Emergency
Planning and Community Right-to-Know Act (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.  We also provide
technical assistance and tools to states and local emergency planning commissions (LEPCs) to better
utilize the information on chemical hazards and risks available to them. In addition, through the rule
making process, EPA works closely with our Federal partners (OSHA, DOT) and with states to
ensure compatibility with existing  accident preparedness and   prevention initiatives.  Close
coordination and a cooperative working relationship is also  required to effectively meet our
responsibilities in the Chemical Safety program, most importantly where they involve the Chemical
Safety Board (CSB). EPA recently completed amemorandum of understanding with the CSB which
further delineates this working relationship.

      The focal point for our Federal preparedness efforts is EPA's role in the National Response
System, which is responsible for coordinating chemical emergency preparedness and response at the
federal, state and local levels. Within this structure, EPA chairs the multi-agency National and
Regional Response Teams that oversee national, regional, and area spill contingency planning.  In
addition, the Agency plays a leadership role in crisis management and counter-terrorism requiring
participation on a number of inter-agency workgroups.

      The Oil Spill program is  multi-dimensional, integrating prevention, preparedness, and
response activities to address oil spills that create significant environmental and economic impacts.
These activities include implementing the Spill Prevention, Control, and Countermeasures program;
evaluating, improving, and providing periodic review of facility response plans and developing,

                                         V-80

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overseeing, and strengthening area contingency plans 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. 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 hi coordination with other Federal authorities to implement the National
Preparedness for Response program.

       The Agency  maintains a close  relationship with state agencies that are  authorized to
implement the RCRA Permitting and Municipal Solid Waste (MS W) landfills programs. States are
required to achieve  the same  level of Federal standards as the Agency, including the annual
performance goals of controls at hazardous waste facilities and MSW landfills. Regional offices
negotiate with the state agencies annualized goals that the state agencies should achieve  with the
grant funds. For example, Regions may negotiate with the state agencies the number of facilities that
are permitted in a year resulting in approved controls in place at facilities. The Agency will continue
our partnership  effort with  state agencies by providing technical  assistance and guidance  on
implementing permitting and MSW Landfill programs.

       The Agency works with tribes to ensure compliance under RCRA on Indian lands. Regional
RCRA tribal team are partnering with the Indian Health Service (IHS) and the Bureau of Indian
Affairs (BIA) to address open dump issues on tribal lands.  In states where partnerships with these
federal agencies have not been well established, Regional office establish interagency workgroups.
Workgroup representatives from other Federal agencies will coordinate tasks based on the field of
expertise of  each agency which will allow for efficient completion of the open dump initiative
without overlapping  efforts.

       Research

       Multimedia, multipathway, multi-chemical, and other multi-receptor model development for
the HWIR continues to be  a highly effective  interagency team effort between EPA and The
Department of Energy (DOE). To develop waste classification criteria based on protecting human
health and the environment, the EPA supported the modification of software developed by DOE's
Pacific Northwest National Laboratory (PNNL) to create a comprehensive environmental exposure
and risk analysis software  system.  The PNNL modified its Framework for Risk Analysis in
Multimedia  Environmental  System (FRAMES), under the direction of EPA, to produce the
FRAMES-HWTR Technology software system. EPA is also coordinating some of its hazardous
waste combustion and non-combustion treatment research with DOE.
Statutory Authorities

•      Solid Waste Disposal Act as amended by the Hazardous and Solid Waste Amendments of
       1984.

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Title III (Emergency Planning and Community Right-to-Know Act) of CERCLA, as amended
by Superfund Amendments and Reauthorization Act (SARA) of 1986

Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of
1980 as amended by the Superfund Amendments and Reauthorization Act of 1986,42 U.S.C.
9601-9657

Clean Air Act Section 112

Waste Isolation Pilot Plant Land Withdrawal Act of 1992, P.L. 102-579

Nuclear Waste Policy Act of 1982, P.L. 97-425

Energy Policy Act of 1992, P.L. 102-486

Atomic Energy Act of 1954, as amended, 42 U.S.C. 2011 et seq. (1970), and Reorganization
Plan #3 of 1970

Uranium Mill Tailings Radiation Land Withdrawal Act of 1978

Public Health Service Act, as amended, 42 U.S.C. 201 et seq.

Chemical Safety Information, Site Security and Fuels Regulatory Release Act, 1999.

Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended, 42 U.S.C.
5121 et seq.

Executive Order 12241 of September 1980, National Contingency Plan, 3 CFR, 1980

Executive Order  12656 of November 1988, Assignment of Emergency Preparedness
Responsibilities, "3 CFR, 1988

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)
                                 V-82

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Goal 6: Global and Cross-Border

-------
Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 6: Reduction of Global and Cross-Border Environmental Risks	VI-1
        Reduce Transboundary Threats:  Shared North American Ecosystems	,	VI-10
        Climate Change	VI-25
        Stratospheric Ozone Depletion	VI-58
        Protect Public Health and Ecosystems From Persistent Toxics	 VI-70
        Achieve Cleaner and More Cost-Effective Practices	VT-81

-------
                           Environmental Protection Agency

           FY 2001 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 environmental concern.
                                  Resource Summary
                                  (Dollars in thousands)

Goal 06
Obj. 01
Obj. 02
Obj. 03
Obj. 04
Obj. 05


Reduction of Global and Cross-
border Environmental Risks
Reduce Transboimdary Threats:
Shared North
Climate Change
Stratospheric Ozoae Depletion
Protect Public Health and
Ecosystems From Persistent
Toxics
Achieve Cleaner and More Cost-
Effective Practices
Total Woikyears
FY1999
Enacted
$229,273.8
$71,336.8
$127,285,5
$17,002.9
$4,278.6
$9,370.0
526.9
FY2000
Enacted
§237,865.8
$70,624.6
$132,115.1
$17,832.2
$4,857.4
$12,436.5
511.7
FY 2001 FY 2001 Req. v.
Request FY 2000 Ena.
$425,070.5
$119,926.7
$257,909.6
$27,998.0
$5,482.8
$13,753.4
533.1
$187,204.7
$49,302.1
$125,794.5
$10,165.8
$625.4
$1,316.9
21.4
Background and Context

       Since many serious environmental risks transcend political boundaries, protecting human
health and the environment in the U.S. require cooperation at a multinational level.  Some
ecosystems essential to the health and welfare of U.S. citizens, such as the Great Lakes, are shared
by neighboring countries and can only be preserved through joint action. Other environmental risks,
including those related to climate change and ozone depletion, are global in scope, and thus require
international action in order to protect the health and welfare of U.S. citizens as well as the rest of
the planet.

       In additionto safeguardinghumanhealthandthe environment, EPA's international programs
provide important political and economic benefits.  A significant portion of EPA's international

                                         VI-1

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work fulfills legally-binding treaties, conventions and other international statutory mandates. The
sharing of regulatory and environmental technological expertise helps developing nations, as well
as the U. S. and other industrial nations achieve development consistent with a. healthy future for all.
Moreover, transboundary effects of pollution at the global scale make international cooperation
critical to achieving EPA's domestic mission.

       EPA's continued leadership is  necessary to build upon international cooperation and
technical capacity, which are essential to prevent harm to the environment and ecosystems that we
share with other nations.  Depletion of the stratospheric ozone layer increases the amount of the
sun's ultraviolet radiation reaching the earth's surface. Climate change, pollution of the oceans and
irreversible loss of species and habitats undermine the resource base critical to our well-being and
quality of life; these changes also deprive us of commercially valuable and potentially life saving
genetic materials. A coordinated international response is needed to confront the climate change
threat, depletion of the stratospheric ozone layer, the transboundary circulation of toxics and other
environmental issues significant to the interests of the United States.
Means and Strategy

       Pollutants do not stop at geographic and political boundaries, and their propensity to migrate
threatens human health and the environment, demanding coordinated international action. The
United States addresses global environmental problems, such as climate change and stratospheric
ozone depletion, through bilateral and multilateral consultations and agreements and capacity
building programs. Other problems are not necessarily of a global scale but cross our borders and
require a geographic approach to direct environmental action.

       EPA will use a variety of approaches to prevent harm to the global and regional environments
and ecosystems uicluding: 1) using regional or global negotiations to form bilateral and multilateral
environmental agreements and environmental policy initiatives; 2) cooperating with other countries
to ensure that domestic and international environmental laws, policies, and priorities are recognized
and implemented; 3) working with otherfederalagencies,states, business, and environmental groups
to promote the flow of environmentally sustainable technologies and services worldwide, facilitate
cooperative research and development programs, and provide technical assistance, training and
information internationally; and 4) promoting public/private partnership programs to reduce
emissions of greenhouse gases and other pollutants.

       U.S. leadership is also required to initiate international agreements and actions to reduce or
eliminate the environmental releases of persistent toxic substances such as DDT, PCBs or dioxins,
which travel great distances in the environment and threaten human health and the environment.
Although the U.S. has controlled many of these substances domestically for some time, we remain
vulnerable to them in part because many other countries still use them, thus contributing to
transboundary flows back into the U.S. By marshaling and coordinating government and private
sector programs with other developed countries and key international organizations (Le., the

                                          VI-2

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Organization for Economic Cooperation and Development and United Nations Environmental
Program), EPA is leading the way for international action to control the use and transboundary
migration of these substances. EPA has made significant progress in negotiating a legally binding
global convention on persistent organic pollutants (POPs) and in helping to establish international
capacity building programs which will facilitate meaningful developing country compliance with
this convention.

Climate Change

       Carbon dioxide and other greenhouse gases are produced by burning coal, oil, and natural
gas to heat our homes, power our cars, and illuminate our cities. Deforestation and land clearing also
contribute to the production of greenhouse gases. These gases which persist in the environment may
have several environmental  effects:  rising atmospheric and ocean temperatures may ultimately
change weatherpatterns; thereby, increasing droughts, precipitation, flooding, heat waves and raising
sea levels. Although the precise magnitude, timing, and regional patterns are uncertain, it is likely
that climate change will have adverse consequences for human health, including: increasing the
number of deaths associated with heat waves and other weather pattern disruptions; increasing
incidence of allergic disorders;  and increasing diseases that thrive in warmer climates, such as
malaria, yellow fever, dengue fever, encephalitis, and cholera.

       Since the early 1990s, EPA has been building partnerships with businesses in all sectors to
meet the 1992 Framework Convention on Climate Change (FCCC) objective to stabilize greenhouse
gas emissions. EPA also plays a major role in the President's Climate Change Technology Initiative
(CCTI), which is designed to stimulate the adoption of energy efficient technologies  and the use of
renewable energy.

Stratospheric Ozone Depletion

       In the stratosphere, ozone protects us from harmful sun rays. Anthropogenic  chemicals are
responsible for depleting ozone in the stratosphere.  Depletion of this ozone  layer means more
exposure to these harmful rays, particularly ultraviolet radiation. The human health  consequences
are increases in skin cancers and cataracts, and impairment to the immune system.  Ecologically,
crop yields fall and plant and animal life is threatened.

       The United States is committed to honoring the 1989 Montreal Protocol Treaty by phasing
out domestic production of ozone-depleting substances (ODSs). EPA's role sterns from the Protocol
and Title VI of the Clean Air Act Amendments of 1990. EPA helps other countries find suitable
alternatives to ODSs, informs the public about the dangers of overexposure to UV  radiation, and
uses pollution prevention strategies to require the recycling of ODSs and hydroflourocarbons.
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       Research
       EPA is working to provide the capability to assess the vulnerability of human health and
ecosystems to climate-induced stressors at the regional scale, and to assess mitigation and adaptation
strategies. Research into the consequences of global change (particularly climate change and climate
variability) on human health and ecosystems will improve our understanding of the nature and extent
of global change. The knowledge gained from these assessments (e.g. the impacts climate change
could have on the spread of vector-borne and water-borne disease, changes in landscape cover and
the migration of plant and animal species, and changes in farm productivity and food distribution),
will allow policy makers to find the most appropriate, science-based solutions to reduce greenhouse
gasses and to reduce significant risks to human health and ecosystems posed by climate change.

Strategic Objectives

Objective 01:  Reduce Transboundary Threats: Shared North American Ecosystems

•      Great Lakes ecosystem components will improve, including progress on fish contaminants,
       beach toxics, air toxics, and trophic status.

*      Increase the number of residents (approximately 11 million total) of the Mexico border area
       who are protected from health risks, beach pollution and damaged ecosystems from
       nonexistent and failing water and wastewater treatmentinfrastructure by providing improved
       water and wastewater service.
Objective 02:  Climate Change

•      Assess  the consequences of global change  (particularly climate change  and climate
       variability) on human health and ecosystems.

«      Greenhouse gas emissions will be reduced from projected levels by approximately 66
       MMTCE per year through EPA partnerships with businesses, schools, State and local
       governments, and other organizations thereby offsetting growth in greenhouse gas emissions
       above 1990 level by about 20%.

•      Reduce energy consumption from projected levels by more than 70 billion kilowatt hours,
       resulting in over $9 billion in energy savings to consumers and businesses.

*      Demonstrate technology for an 80 MPG mid-size family sedan that has low emissions and
       is safe, practical, and affordable.
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»     Assist 10 to 12 developing countries and  countries with economies in transition in
      developing strategies and actions for reducing emissions of greenhouse gases and enhancing
      carbon sequestration.

•     Provide  analysis, assessment,  and reporting  support to Administration  officials, the
      Intergovernmental Panel on Climate Change, and the Framework Convention on Climate
      Change.

      In close cooperation with USDA, identify and develop specific opportunities to sequester
      carbon in agricultural soils, forests, other vegetation and commercial products, with collateral
      benefits for productivity and the environment, with carbon removal potential of up to 40
      MMTCEby

Objective 03: Stratospheric Ozone Depletion

*     Provide assistance to at least 75 developing countries to facilitate emissions reductions and
      toward achieving the requirements of the Montreal Protocol.

•     Restrict  domestic consumption of class II HCFCs below 15,240 OOP-weighted metric
      tonnes (OOP MTs) and restrict domestic exemptedproduction and import of newly produced
      class I CFCs and halons below 60,000 ODP Mts.

•     For 60% of children in SunWise Schools, the dose of ultraviolet ratdiation (UVR) to which
      they are exposed will be reduced by 50% thus decreasing the risk of future UV-related health
      effects, including skin cancer, eye damage, and suppression of the immune system.

Objective 04: Protect Public Health  and Ecosystems From Persistent Toxics

*     Successfully conclude international negotiations on  a global convention  on Persistent
      Organic Pollutants (POPs), and initiate priority capacity building projects in key developing
      countries.

Objective 05: Achieve Cleaner and More Cost-Effective Practices

«     Complete pilot reports on the implementation of environmental laws and regulations in 4
      developing countries.

•     Enhance environmental management and institutional capabilities in priority countries.
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Highlights

       EPA's continued leadership is necessary to build international cooperation and technical
capacity essential in preventing harm to the global environment and ecosystems we share with other
nations. In 2001, EPA will use a variety of approaches to prevent harm to the global environment
and ecosystems.

       To reduce environmental and human health risks along the U.S./Mexico Border, EPA is
working with the border states and Mexico to target the quality of air, drinking water and wastewater
treatment and hazardous waste management and disposal. Nine working groups will address key
issues while working closely with state and local agencies on both sides of the border. EPA will also
support the financing and construction of water, wastewater treatment and solid waste facilities.

       EPA,  through  the  Great Lakes  National Program  Office (GLNPO), will coordinate
implementation of the ecosystem approach in the Great Lakes by its Federal, state, tribal and local
partners, fully implementing a "community-based" approach.  GLNPO and its partners will act
consistently with goals of a new Great Lakes Strategy and the Agency's Strategic Plan. EPA, states
and local communities will strategically target reductions of critical pollutants through Remedial
Action Plans for Areas of Concern and through Lakewide Management Plans for Lakes Ontario,
Michigan, Superior, and Erie.

       Recognizing that no single country can resolve the problem of global climate change, EPA
will help facilitate the international cooperation necessary to achieve the stabilization of greenhouse
gas concentrations. The 1992 Framework Convention on Climate Change (FCCC) set the objective
of stabilizing greenhouse gas concentrations at a level that would prevent dangerous anthropogenic
interference  with the  climate system. On the domestic side, EPA will encourage voluntary
partnerships, provide technical assistance and promote state and local efforts to  achieve future
greenhouse gas emission reductions.  Administration-wide, the programs launched in the 1993
Climate Change Action Plan (CCAP) have the potential to reduce U.S. greenhouse gas emissions
by more than 160 million metric tons of carbon equivalent (MMTCE) annually by the year 2010.

       The Agency will contribute to the science underpinningU.S. policy, including the assessment
of consequences of climate change and climate variability. Particular attention will be given to the
potential benefits and consequences of climate variability and change for human health, ecosystems,
and economic systems at the regional, state and local levels.  EPA will play a major part in peer-
reviewed economic and policy analyses that serve U.S. policymakers and international negotiators.

       EPA will also continue its efforts in focusing on climate change activities that would provide
"co-benefits" to a specific country. Specifically, EPA will implement partnership activities with
industrial and other priority countries by: 1) encouraging energy efficiency through the introduction
of government policy incentives and  environmental  management practices; 2) introducing
transportation planning and management; 3) implementing vehicle emissions testing programs; 4)
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planning and funding methane capture and utilization programs; and, 5) planning and funding sulfur
dioxide trading programs.

       To protect the earth's stratospheric ozone layer, EPA will continue to regulate ozone-
depleting compounds and foster the development and use of alternative chemicals in the U.S. and
abroad. The United States' response to the harmful effects of stratospheric ozone depletion is its
commitment to honor the Montreal Protocol by phasing out domestic production of ozone-depleting
substances (ODSs). EPA's role originates from the Montreal Protocol and Title VI of the Clean Air
Act Amendments of 1990. EPA helps other countries find suitable alternatives to ODSs, informs the
public about the dangers of overexposure to UV radiation, and uses pollution prevention strategies
to require the recycling of ODSs and hydroflourocarbons.

       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 the Department of State  and with other countries to control the production or phase-out from
the use of targeted chemicals.  EPA  is also working to  reach agreement on import and export
requirements applicable to certain chemicals, an expansion of pollutant release and transfer registers
and the harmonization of chemical testing, assessment  and labeling procedures. The goal of
international harmonization of test guidelines is to reduce the burden on chemical companies of
repeated testing in satisfying the regulatory requirements of different jurisdictions both within the
United States and internationally. Harmonization also expands the universe of toxic chemicals for
which needed testing information is available, and fosters efficiency in international information
exchange  and mutual international  acceptance of chemical test data.    For  test guideline
harmonization, 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 50
SIDS chemicals in 2001.

       In 2001,  EPA  and its U.S. government partners will conclude a legally-binding global
convention on persistent organic pollutants (POPs), substances such as DDT, PCBs and dioxins
which travel great distances in the environment and thus threaten humans and the ecosystem in the
U.S. even though we have long worked domestically to reduce releases into the environment. This
convention will require most other countries around the world to reduce and/or eliminate their
production, use and trade of specified POPs, as well as improve their own POPs risk management
practices. 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

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Bank, the United Nations Environment Program, and the United Nations Development Program) to
carry out capacity building programs in developing countries.  To do this, EPA will establish
emission inventories and other needed data which will help foster an understanding and track the
release contribution of the listed POPs.

       EPA will initiate in 2001, the next stage of assisting Russia in its goal of total elimination
of CFCs by assisting in the development of a post phase-out monitoring program. Activities would
be coordinated with the World Bank, donor countries and agencies in facilitating training and other
forms  of technical exchange.  In addition,  EPA will  begin targeting countries for  specific
enforcement capacity enhancement of custom officials to prevent the illegal entry of banned CFC's
into the United States.

       EPA will also  establish a new international monitoring program, assisted by the State
Department, which aims to promote higher environmental standards worldwide. Specific objectives
of the program are to monitor and report on other countries implementation of environmental laws
and regulations, identify technical assistance needs and coordinate its provision, and counsel U.S.
firms on local environmental laws and conditions. By identifying targets for technical assistance,
EPA will help developing countries apply cleaner and more cost-effective environmental practices
and technologies.  For both the U.S. and other countries, the program will demonstrate that global
economic integration and environmental protection can go together.
       Research

       EPA will assess the possible effects of global change, such as changes in climate and climate
variability, changes in land use, changes in UV radiation and changes on air quality, water quality,
ecosystem health, and public health. EPA will also examine possible adaptation strategies that could
enable communities to take advantage of opportunities and reduce the risks associated with global
change. The outcome of these assessments will help inform decision-making regarding strategies
to address these possible-changes.
External Factors

       The success of EPA's programs and activities under Goal 6 will  depend on active
participation by other nations: both developed and developing countries. Reduction of air, water,
and waste problems along the U.S. border with Mexico will require continued commitment by
national, regional and local environmental officials in that country.  Similarly, EPA's efforts to
reduce global and regional threats to oceans and the atmosphere will require active cooperation of
other countries. Health and environmental benefits resultingfrom 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
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Montreal Protocol on Substances that Deplete the Ozone Layer has secured the participation of most
countries, including major producers and consumers of these chemicals.

       While many factors outside of EPA or U.S. control determine a nation's willingness to
participate  in  international  environmental  protection efforts  (e.g.,  economic  or  political
considerations within the country), EPA's international policy and technical exchange programs can
play an important  role in convincing particular nations  of both the need and feasibility of
participating. Other factors affecting EPA's programs under Goal 6 inchidecontinued 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.
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                             Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

                Reduction of Global and Cross-border Environmental Risks


Objective #1: Reduce Transboundary Threats: Shared North American Ecosystems

       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)
                                         FY1999
                                         Enacted
          FY2000
          Enacted
           FY2001    FY2001Req.v.
           Request     FY 2000 Ena.
Reduce Transboundary Threats: Shared North
American Ecosystems

    Environmental Program & Management

    State and Tribal Assistance Grants

        Total Workyears
$71336.8
$70,624.6
$21,336.8      $20,624,6

$50,000.0      $50,000.0

    85.9          80.7
$119,926.7
$49,302.1
             $19,926.7       ($697.9)

            $100,000.0      $50,000,0

                 82.3           1.6
                                      Key Programs
                                   (Dollars in thousands)

Great Lakes National Program Office (CWAP)
Water Infrastructure:Mexico Border
U.S. - Mexico Border
Partnership with Industrial and Other Countries
Administrative Services
FY1999
Enacted
$14,783.8
$50,000.0
$4,929.4
$784.0
$31.6
FY2000
Enacted
$15,077.6
$50,000.0
$4,142.3
$646.9
$148.9
FY2001
Request
$13,196.7
$100,000.0
$5,176.2
$842.8
$41.9
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FY 2001 Request
       EPA's activities under this objective address transboundary environmental threats along the
U.S. border areas, in shared North American ecosystems, as well as in the Great Lakes.  Activities
focus on the U.S.-Mexico Border, the U.S.-Canada Border, the Great Lakes Program, and marine
and Arctic environments.

U.S.-Mexico Border

       Along the 2,000 mile U.S.-Mexico border, communities  live side-by-side, sharing the
benefits of rapid economic growth and the subsequent environmental problems.  Today, there are
more than 11 million border residents, a population that has doubled in the last 15 years. The effects
of urban and industrial growth have contributed to the historicproblems of inadequate environmental
infrastructure. Based on the results of the Biennial Progress Report and public comments, EPA will
focus limited resources in areas which can most directly lead to improvements in public health and
environmental conditions in this area. The program is expected to focus 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 j oint 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 noneompiianee.

       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. The Border Environment Cooperation Commission (BECC) and the
North American Development Bank (NADBank) have estimated wastewater infrastructure needs
along the U. S./Mexico border at $2.8 billion.  In 2001, the  Agency has established a goal that
cumulatively six hundred thousand people in the border area will be protected from health risks
because of the construction of adequate water and wastewater systems. EPA will also work closely
with the BECC and the NADBank, which manages the Border Environmental Infrastructure Fund
(BEIF), to support the financing and construction of water and wastewater treatment and solid waste
facilities.  Of the S100M request for the Mexico Border, EPA is proposing to direct $1M for the

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U.S.-Mexico Foundation for Science.  Within this objective, the Agency is requesting $100M to
support these efforts, largely through the BEIF.  The Agency will cooperate with its Mexican
counterpart agencies to implement the provisions of the LaPaz Agreement and the Border XXI
Framework Document  which provide a long term strategy to improve public health and the
environment and protect essential natural resources in the border. Nine binational working groups
will address key issues, working closely with state and local agencies on both sides of the border.
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, fully
implementing a "community-based" approach. GLNPO and its partners will act consistently with
goals of a new Great Lakes Strategy and the Agency's Strategic Plan.

       EPA will assess and report on the state of key Great Lakes ecosystem components, make
current status and trend information available to Great Lakes environmental managers, and
coordinate measurement of environmental indicators applicable to the entire Great Lakes Basin. The
Research Vessel (R/V) Lake Guardian (open lake monitoring), the R/V Mudpuppy (nearshore
sediments monitoring), and the joint GLNPO/Canadian integrated atmospheric deposition network
(including air monitoring stations on each Great Lake) will be central to summarizing the ecological
State of the Lakes. EPA's Great Lakes program will describe trends in: concentrations of toxics in
Great Lakes top predator fish; beach closings; concentrations of toxic chemicals in the air, trophic
status and phosphorus, and contaminated sediment remediation.  Information will be provided to
state and Federal environmental managers to drive decision-making. The environmental condition
of the Great Lakes will be described in a way that can be easily understood.

       GLNPO will adjust its monitoring program to implement indicators monitoring consistent
with GPRA and the indicators identified through the process developed for the biennial State of the
Lakes Ecosystem Conference (SOLEC). SOLEC brings together representatives of the public and
private sectors to facilitate decision-making based upon sound environmental information. GLNPO
will report additional model predictions for Lake Michigan toxic reduction scenarios from the multi-
media initiative for the first-ever intensive monitoring of Lake Michigan air, water, sediments, and
biota (the Lake Michigan Mass Balance Study, or "LMMB"), supporting the Great Waters provision
of the Clean Air Act and § 118 of the Clean Water Act. This will enable the Agency and its partners
to determine how to further reduce Great Lakes pollutants in the most cost effective way and will
provide trend and baseline data to support and target remedial efforts and measure environmental
progress under Remedial Action Plans and Lakewide Management Plans. EPA will also expand
public  access to LMMB and other Great Lakes environmental information via the Internet.

       EPA will work with Environment Canada and lead domestic partners in implementing the
Great  Lakes  Binational Toxics Strategy,  signed  in 1997.  The Strategy, a groundbreaking
international toxics reduction effort, targets a common set of persistent, toxic substances for

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reduction and virtual elimination from the Great Lakes. It focuses on pollution prevention efforts,
using voluntary and regulatory tools to achieve reductions, and contains reduction challenges for a
targeted set of substances, e.g., mercury, PCBs, dioxins/furans, and certain canceled pesticides.
Actions and activities are outlined in the Strategy which states, industry, tribes, non-government
organizations and other stakeholders may undertake to achieve these reductions. Through grants to
stakeholders (such as the Great Lakes States, Tribes and environmental groups for mercury or PCBs
reduction projects, for example) and other reduction actions, EPA will address up to 5 targeted
substances to achieve reduction targets. These actions will follow the FY2000 completion of
information gathering, analysis of current regulations/initiatives,  and identification of options for
each of the 12 BNS substances. Progress will be documented.  Implementation of the Strategy
outside of the Great Lakes Basin will be augmented through cross-Agency support and activities
relating to EP A's Persistent Bioaccurmilative Toxics (PBT) Initiative. Strategy toxics were chosen
as the initial set toxics targeted under the PBT Initiative.

       EPA, with its partners, will continue to address the contaminated sediments polluting the
harbors of  the 31 U.S. and/or binational Areas of Concern (AOCs) in the Great Lakes. Using
expertise from the congressionally mandated Assessment and Remediation  of Contaminated
Sediments program, GLNPO uses its R/V Mudpuppy and other resources to visit sites and assess
sediments, returning as needed for finer scale assessment and remedial design. If a community then
chooses to remediate the sediments, GLNPO can conduct a sediment site cleanup demonstration.
In 2001, GLNPO will assist communities with assessments and remedial design at 4 AOCs thus
having provided this assistance at 26 AOCs since this program began. One of the AOCs will be
visited for the first time. GLNPO will complete its fifth sediment cleanup demonstration since 1996.
GLNPO will also be involved in competitively awarding the new AOC grants for 2001..

       The Agency will support the efforts of States, Tribes, and local communities to protect and
restore important habitats identified in the Great Lakes  biodiversity report of The  Nature
Conservancy  (TNC) and SOLEC habitat papers. The program emphasizes habitats important for
biodiversity and ecological integrity (such as those necessary for endangeredand 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.

       EPA, Regions, States, and local communities will strategically target reductions of critical
pollutants through Remedial Action Plans for Areas of Concern and through Lakewide Management
Plans for Lakes Ontario, Michigan, Superior, and Erie.  The Agency will continue to meet specific
requirements for reporting to  Congress and the International Joint Commission regarding progress
under the Great Lakes Water  Quality Agreement. The Great Lakes National Program Office will
use its expertise addressing contaminated sediments and habitat protection and restoration and will
work extensively with Agency and other partners in supporting the new Great Lakes Cleanup Grants
Program included in Goal 2, Objective 2.
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Marine and Arctic Environments

      In 2001, EPA will continue effortsto prevent significant degradation of the marine and Arctic
environments.  Our 2001 performance goals will provide the  first multilateral instrument  for
establishing international norms for specific contaminants and effluents for land-based marine
pollution, and conclude negotiations that will enhance the effectiveness of existing  domestic
environmental controls and reduce pollution of U.S. waters resulting from international shipping.

      The focus of the program is the protection of those natural resources in the marine and polar
environments that are important to the United States and other countries as well as the public health
of Arctic Rim populations,  More specifically, the programs will prevent or reduce environmental
damages associated withtributlytin, vessel discharges, and ocean dumping. Specific projects aimed
at protection  of the Arctic Ecosystem  are focused on preventing or reducing environmental
contamination from spent nuclear fuel and PCBs in NW Russia.

      The Russia PCB project, initiated in 1999, will assist the Russian Federation in phasing out
its manufacture and use of PCBs, to reduce the release of PCBs and their subsequent transport to the
Arctic, and to encourage the Russian Federation to begin using PCB substitutes. The project is a
multilateral cooperative pilot and is currently being conducted in conjunction with al 1 the Arctic Rim
countries under the auspices of the Arctic Monitoring and Assessment Programme (AMAP) of the
Arctic Council. The participating countries include Canada, Denmark/ Greenland. Finland, Iceland,
the Netherlands, Sweden, Russia, and the United States. 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 ihe inventory,
Russian facilities that impact the Arctic will be prioritized for conversion or retrofitting for the
manufacture or use of PCB substitutes. In coordinating withNOAA, EPA describes these activities
in the AMAP National Implementation Plan and the U.S. Arctic Research Plan.

      In addition, ongoing efforts to address land-based sources of marine pollution in the Wider
Caribbean should result in improvements in regional water quality and marine habitats that include
economic benefits to significant commercial interests in the Region. Finally, our involvement in
multilateral negotiations is critical to maintain needed flexibility in domestic rule making and other
environmental policy mechanisms.
FY 2001 Change from FY 2000 Enacted

EPM.

•     (+$1,329,800)  Reflect increases for payroll cost of living increases, international travel,
      contract and grants resources for Mexican Border work, and support of the Russia PCB
      Project. The Russia PCB Project goal is to reduce the release of PCBs and their subsequent
      transport to the Arctic.

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       (-$350,000)  Reductions to great  lakes activities including monitoring lake ecosystem
       indicators and managing and providing public access to Great Lakes data.

       (-$1,416,300) Reductions taken due to a Congressional directive received during the 2000
       appropriations process but not part of the 2001 President's Request.
STAG
       (+$50,000,000)  to  the  Mexico  Border  Infrastructure Program.    This  reflects the
       Administration's commitment for funding infrastructure needs along the U.S./Mexican
       Border.
Annual Performance Goals and Performance Measures

Air Monitor Networks

In 2001     Complete  air  monitoring networks for 3 of the 7 non-attainment areas along the
           US/Mexican border.

In 2000 ,    Complete  air  monitoring networks for 3  of the 7 non-attainment  areas along the
           US/Mexican border.

In 1999     3 of the 5 emission inventories were completed.

Performance Measures:                            FY1999        FY2000       FY2001
                                               Actuals         Estimate       Request

Number of non-attainment areas along the
border with emission inventories                     3                                       inventories

Number of non-attainment areas along the
border with air monitoring networks                                3             3          areas

Baseline:    Many border area residents are exposed to health-threatening levels of air pollutants, including
           CO2, S02, NO2, ozone, and PM-10. Under the Border 21 Framework Mexico and United States
           have agreed to work together to address these air issues. Currently three areas have monitoring
           networks in place,


U.S. - Mexico Border Water/Wastewater Infrastructure

In 2001     Increase the number of residents (approximately 11 million total) of 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.
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In 2000     5 additional  water/wastewater  projects along the Mexican border will  be certified for
            design-construction for a cumulative total of 30 projects.

In 1999     9 additional water/wastewater projects along the U.S.-Mexico Border have been certified for
            design-construction.

Performance Measures:                              FY1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

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.                                                                  600,000    People

Projects certified for design-construction
 along the Mexican Border                            9              5                          Projects

Baseline:    There are 11 million residents in the border area.
Great Lakes: Binational Toxics Strategy

In 2001     Reduce Great Lakes toxic pollutants.

In 2000     Reduce Great Lakes toxic pollutants.

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 demonstrations started in 1996 have been
            completed.

In 1999     Cataloged and publicized 3 actions toward reduction challenges under the BNS. Initiated 12
            Great Lakes Projects in support of toxics reduction.

Performance Measures:                               FY 1999        FY2000        FY2001
                                                    Actuals         Estimate        Request

Level I substances for which 1-2 toxic
reduction activities are being implemented.                             3                           Substances

New assessments and characterizations
to support State/community clean-up of
contaminated sediments at Great Lakes AOCs.                          1                           Assessment

Follow-up assessments and characterizations to
support State/community clean-up of contaminated
 sediments at Great Lakes AOCs.                                      1                           Assessments

Cubic yards of contaminated sediment remediated
 in the Great Lakes.                                                                  50,000      Cubic yards
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Amount of high-level PCBs used in electrical
equipment nationally.

Amount of mercury deliberately used nationally and
released nationally from sources resulting from
human activity.

Amount of dioxins and furans (2,3,7,8-TCDD toxicity
equivalents) released from sources resulting from
human activity.

Great Lakes sediment cleanup demonstrations
completed

Catalog and publicize actions (partnerships or
virtual elimination demonstration projects)
toward reduction challenges under BNS.
                               Reasonable  Progress
                               Reasonable  Progress
                               Reasonable  Progress
                               Demonstration
                                           Actions
Great Lakes Projects initiated in support of
toxics reduction

Assessments and characterizations at Great
 Lakes Areas of Concern

Catalogued and publicized actions (partnerships
or virtual elimination demonstration projects)
 initiated toward reduction challenges under BNS.

Completion and documentation of BNS analytical
process for each of the Level 1 chemicals.
 Process includes info, gathering, analysis
of reg, gaps, recommendations, & options
for reductions

Cumulative total (out of 5 started since 1996) of
sediment cleanup demonstrations completed.
12
                10
                100
Projects
                                           Assessments
Actions
% Completion
                                           Cleanup demos
Baseline:    U.S. baselines for toxic pollutants are, in most cases, based on the most recent and appropriate
            inventory as of the Great Lakes Strategy's 1997 signing. In the case of mercury, for example, the
            most recent inventory is based on estimated emissions during the early 1990s.  In September
            1999, GLNPO quantified for the first time annual contaminated sediment remediation. GLNPO
            will continue to quantify contaminated sediment remediation annually.
Great Lakes: Ecosystem Assessment

In 2001      Great Lakes ecosystem components will improve, including progress on fish contaminants, beach
            toxics, air toxics, and trophic status.

In 2000     Measurable improvements in Great Lakes ecosystem components.
                                                  VI-17

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In 1999     Steps identified in ballast water management that will prevent the  introduction  of new
            non-indigenous species.

In 1999     Protocols developed for swimmability index, benthic community health,  sediment assessment,
            sediment remediation, and predator fish.

In 1999     Funded 8 projects intended to ecologically enhance terrestrial biodiversity and have enhanced
            95,000 acres.
Performance Measures:
FY 1999
Actuals
Great Lakes Ecosystem Indicator Indices with
reports, addressing select fish contaminants,
atmospheric deposition, limnology, biology,
and sediments.

Acreage of total aquatic, wetland, riverine, and
 terrestrial Great Lakes habitat positively impacted.

Begin pilot project to implement 1 ballast water
management recommendation addressing Great
Lakes invasive species.

Concentration trends of toxics (PCBs)
 in Great Lakes top predator fish.

Trend in number of monitored Great Lakes
 beaches closed one or more days as a result of pollution.

Concentration trends of toxic chemicals in the
air (including PCBs, PAHs, pesticides, and trace
metals, such as lead and arsenic).

Trophic status and phosphorus concentrations
 in the Great Lakes.

Develop protocols for 5 of a proposed 12 GLNPO
Monitoring Indexes, summarizing the prior year's
data on select fish contaminants, atmospheric dep.,
limnology, biology, & sediments.                      5

Projects and acreage ecologically enhanced in
terrestrial biodiversity investment areas                 8/95,000

Model predictions for Lake Michigan for toxics
reduction scenarios.

Set of quantifiable targets for ecological enhancement
in aquatic biodiversity investment areas.                0
FY 2000
Estimate
                6,000
FY2001
Request
                            Indices


                            Acres



                            Pilot


                Declining   Trend


                Declining   Trend



                Declining   Trend


                Improving   Concentration
                                            Protocols
                                            Projects/Acres
                                            Predictions
                                            Set
                                                    VI-18

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Identify steps in ballast water management that will
prevent the introduction on new non-indigenous species.  1                                         Set

Baseline:    Identified targets are currently based on historic trends. The trend (starting with 1972 data) for PCBs
           in Great Lakes top predator fish toxics is expected to be less than 2 parts per million (the FDA action
           level), but far above the Great Lakes Initiative target or levels at which fish advisories can be
           removed. The trend (starting with 1992 data) for PCB concentrations in the air is expected to range
           from 50 to 250 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. EPA is working with its partners to refine targets within the next
           4 years.


Nuclear Fuel Containment

In 2001     Complete the siting and construction of the interim storage pad for the prototype 40 tonne nuclear
           fuel storage cask for spent nuclear fuel from military vessels in Northwest Russia

In 2000     Complete testing and certification of a prototype 40 ton spent nuclear fuel storage cask for use in
           N W Russia that meets international guidelines and internal Russian Federation standards.

In 1999     Prototype cask for spent military nuclear fuel completed.

Performance Measures:                             FY1999        FY2000        FY2001
                                                 Actuals         Estimate        Request

A prototype spent nuclear fuel storage cask is
certified for use in Russia by Russian Federation
nuclear & environmental authorities                                  09/30/2000                 certification

Complete construction of cask containment
 system prototype                                   yes                                       design report

40 tonne Pad/cask system licensed for use by
Russian Federation regulatory authorities                                             1          License

Baseline:    Testing and certification are complete. Next phase of implementation.
Verification and Validation of Performance Measures

Performance Measure: People in the Mexico border area protected from health risks because of
adequate water  and  wastewater  infrastructure  funded  through the Border  Environmental
Infrastructure Fund.

Performance Database: No formal database

Data Source: 1) Population figures from 1990 U.S. Census;  2) data for both U.S. and Mexican
population  served  by "certified" water/wastewater treatment improvements from  the  Border

                                              VI-19

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Environment Cooperation Commission (BECC); 3) data on projects funded from the North
American Development Bank (NADBank)

QA/QC Procedures:  Headquarters is responsible for coordinating submission and evaluation of
quarterly reports from the Regions.

Data Quality Review: Regional representatives attend meetings of the certifying and financing
entities for border projects (BECC and NADBank) and conduct site visits of projects underway to
ensure the accuracy of information reported.

Data Limitations: None

New/Improved Data or Systems:  None

Performance Measure: Concentration trends of toxics (PCBs) hi Great Lakes top predator fish.

Performance Database: GreatLakesNationalProgramOffice (GLNPO) base monitoring program.

Data Source: GLNPO's ongoing base monitoring  program, which has included work with
cooperating organizations such as the Great Lakes States, USGS, and USFWS.

QA/QC Procedures:  GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order.

Data Quality Review:  GLNPO is audited every 3 years in accordance with Federal policy for
Quality Management. GLNPO's quality management system has been given "outstanding" ratings
in previous peer and management reviews. GLNPO is responding to the report on  the July, 1999
Management Systems Review.

Data Limitations: There is greater uncertainty regarding the representativeness of data pertaining
to nearshore areas because of the greater variability of the nearshore environment. GLNPO will be
able to quantify uncertainty for data in each reported area.

New/Improved  Data or Systems: The GLENDA database is a significant new system with
enhanced capabilities. We are exploring the use of GLENDA for existing data.

Performance Measure: Concentration trends of toxic chemicals in the air (including PCBs, P AHs,
pesticides, and trace metals, such as lead and arsenic).

Performance Database: Great Lakes National Program Office (GLNPO) integrated atmospheric
deposition network (IADN) operated jointly with Canada.
                                       VI-20

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Data Source: GLNPO and Canada are the principal sources of that data. Data also come through
in-kind support and information sharing with other Federal agencies, with Great Lake States, and
with Canada.

QA/QC Procedures:  GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order.

Data Quality Review: GLNPO is audited every 3 years in accordance with Federal policy for
Quality Management.  GLNPO's quality management system has been given "outstanding" ratings
in previous peer and management reviews. GLNPO is responding to the report on the July, 1999
Management Systems  Review.

Data Limitations: None

New/Improved Data  or Systems:  The GLENDA database is a  significant new system with
enhanced capabilities.  We are exploring the use of GLENDA for existing data.

Performance Measure: Trophic status and phosphorus concentrations in the Great Lakes.
Performance Database: Great Lakes National Program Office (GLNPO) base monitoring program.

Data Source: Data are part of GLNPO's ongoing base monitoring program for the open waters of
the 5 Great Lakes.  GLNPO is the principal source of that data.

QA/QC Procedures:  GLNPO has a Quality Management system in place which conforms to the
new EPA quality management order.

Data Quality Review: GLNPO is audited every 3 years in accordance with Federal policy for
Quality Management.  GLNPO's quality management system has been given "outstanding" ratings
in previous peer and management reviews. GLNPO is responding to the report on the My, 1999
Management Systems  Review.

Data Limitations: None

New/Improved Data  or Systems:  The GLENDA database is a  significant new system with
enhanced capabilities.  We are exploring the use of GLENDA for existing data.

Coordination with Other Agencies

Mexican Border

      Over the last several years, US  EPA has continued to work with the US 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 US - Mexico Border. Recently,

                                      VI-21

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the IB WC and US EPA have been involved in joint efforts to plan, design and construct six water
and wastewater facilities in the Border region.

       The Governments of Mexico and the United States agreed, in November 1993, on
arrangements to assist communities on both sides of the border in coordinating and carrying out
environmental infrastructure projects. The new 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: 1. Border
Environment Cooperation Commission (BECC), with headquarters in Ciudad Juarez, Chihuahua,
Mexico,  to  assist local communities  and  other sponsors in developing and  implementing
environmental infrastructure projects, and to certify projects for North American DevelopmentBank
financing; and 2.  North  American Development Bank (NADBank), with headquarters hi San
Antonio, Texas, capitalized in equal shares by the United States and Mexico, with an authorized
capital of $3 million dollars, to provide new financing to supplement existing sources of funds and
foster the expanded participation of private capital. Currently, US EPA has placed $ 170 million of
its Border grant funds (Border Environmental Infrastructure Fund, BEIF) with the NADBank..

       Under the North American Free Trade Agreement, the United States Government has
committed to funding $700 million towards the Mexico Border project. Through fiscal year 2000,
$533 million has been appropriated.

Great Lakes

       Pursuant to the mandate in Section 118 of the Clean Water Act to "coordinate action of the
Agency with the actions of other Federal  agencies and State and local authorities...," GLNPO is
engaged in extensive coordination efforts with State, Tribal, and other Federal agencies, as well as
with our counterparts in Canada.  In 1991,  EPA joined States and Federal agencies that have
stewardship responsibilities for the Lakes in developing a shared five year strategy. In addition to
the eight Great Lakes States, partners to the plan include the Army Corps of Engineers (Corps), the
Coast Guard, the Fish and Wildlife Service (USFWS), the U.S. Office of Geological Survey, the
National  Oceanic and Atmospheric Administration (NOAA), and  the Natural Resources
Conservation Service (NRCS).  The strategy joins environmental protection agencies with natural
resource agencies  hi pursuit of common goals. These partners envision updates that will keep the
strategy a current, action-forcing document that targets different problems in succession.  These
same organizations and the Great Lakes Tribes also meet at GLNPO's annual Great Lakes Planning
Meeting to plan  and prioritize near term activities.  GLNPO monitoring involves extensive
coordination among these partners, both in terms of running 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 hi addressing  habitat issues in the Great  Lakes.

                                         VI-22

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GLNPO  also coordinates with these partners regarding development and implementation of
Lakewide Management Plans for each of the Great Lakes and for Remedial Action Plans for the 31
US/binational Areas of Concern.

Marine and Arctic Environments

       EPA has a number of cooperative effort's underway addressing both radioactive and non-
radioactive contamination threats to the Arctic environment and ecosystems, including threats to
Alaska and indigenous populations of the Arctic Rim.  Three ongoing projects address concerns
regarding radioactive contamination from Northwest  Russia. One,  concerned with  providing
processing capacity for low-level liquid radioactive waste  in Murmansk, Russia, has involved
domestic coordination with DOD, DOS, AID, and international coordination and partnering with
Government of Norway (Ministry of Foreign Affairs) and the Government of Russia (Ministries of
Atomic Energy and Transportation). Two other projects address the safe storage of spent nuclear
fuel from decommissioned Russian nuclear submarines, OIA coordinate these projects with DOS
and DOD; and our foreign partners Norway, Finland, Sweden,  the U.K. and EU Russia. Non-
radioactive contamination concerns are being addressed through projects under the eight nation
Arctic Council (Finland, Denmark/ Greenland, Norway, Sweden, Canada, Iceland, Russia) and the
Arctic Monitoring and Assessment Program (AMAP) under the Council.

       The major goals of the Russia PCB project are to assist the Russian Federation in phasing
out its manufacture and use of PCBs, to reduce the release of PCBs and their subsequent transport
to the Arctic, and to encourage the Russian Federation to begin using PCB substitutes. The project
is a multilateral cooperative pilot and is currently being conducted in conjunction with all the Arctic
Rim countries under the auspices of the Arctic Monitoring and Assessment Programme (AMAP) of
the Arctic Council. Other aspects of the PCB work involve coordination or cooperation with HHS
(Indian health Service and Center for Disease Control), agencies of the State of Alaska and a number
of Alaskan native American organizations.

       EPA works with the Department of State, NO AA, Coast Guard, Navy, and other interested
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


                                        VI-23

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Toxic Substances Control Act




Resource Conservation and Recovery Act




Pollution Prevention Act




North American Free Trade Agreement




US-Canada Agreements




1997 Canada-U.S. Great Lakes Binational Toxics Strategy




1996 Habitat Agenda




1990 Great Lakes Critical Programs Act




1987 Great Lakes Water Quality Agreement




1987 Montreal Protocol on Ozone Depleting Substances




1978 Great Lakes Water Quality Agreement (GLWQA)




1909 The Boundary Waters Treaty
                                       VI-24

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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

              Reduction of Global and Cross-border Environmental Risk
Objective #2:  Climate Change

      By 2000 and beyond, U.S. greenhouse gas emissions will be reduced to levels consistent with
international commitments agreed upon under the 1992 Framework Convention on Climate Change,
building on initial efforts under the Climate Change Action Plan,
                                Resource Summary
                                (Dollars in thousands)

Climate Change
FY 1999 FY 2000
Enacted Enacted
$127,285.5 $132,115.1
Environmental Program & Management $74,364.4 $83,477.9
Science & Technology
Total Workyears


Climate Change Technology Initiative:
Climate Change Technology Initiative:
Climate Change Technology Initiative:
$52,921.1 $48,637.2
322.1 305.3
Key Programs
(Dollars in thousands)
FY 1999
Enacted
Buildings $38,800.0
Transportation $3 1 ,750.0
Industry $22,086.1
Climate Change Technology Initiative: Carbon Removal $0.0
Climate Change Technology Initiative:
State and Local Climate $2,500.0
FY 2001
Request
S257.909.6
S182.094.3
$75,815.3
328,7

FY2000
Enacted
$42,640.9
$29,604.8
$21,991.7
$1,000.0
$2,508.0
FY 2001 Req. v.
FY 2000 Ena.
5125,794.5
598,616.4
527,178.1
23.4

FY2001
Request
$80,063.8
$65,084.0
$63,686.1
$3,410.0
$4,525.0
Change Program
                                       VI-25

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CCTI: International Capacity Building

CCTI: Research

Climate Change Research

Partnership with Industrial and Other Countries

Rent, Utilities and Security

Administrative Services
 $4,322,9

$10,000.0

$15,970.6

  $409.1

    $0.0

    $0.0
$5,594.4
$10,576.2
$0.0
$20,592.2
$428.2
$4,298.7
$1,905.0
$0.0
$22,726.3
$660.9
$4,747.7
$2,137.3
FY 2001 Request

      EPA is meeting the United States' climate change objectives by working in partnership with
business and other sectors through programs that deliver multiple benefits - from cleaner air to lower
energy bills - while improving overall scientific understanding of climate change and its potential
consequences. In F Y 2001, EPA expects to continue expanding on the significant accomplishments
of its Climate Change Programs, The opportunity to save on our nation's $500 billion annual energy
bill over the next decade while reducing air pollution is tremendous.  The opportunity to reduce
greenhouse gas emissions is also large.  We currently expect that more than half of the nation's
anthropogenic greenhouse gas emissions in 2010 will come from equipment that we purchase
between now and then.

      The core of EPA's climate change efforts are government/industry partnership programs
designed to capitalize on the opportunity consumers, businesses, and organizations have to mate
sound investments in efficient equipment and practices. Thousands of equipment purchases are
made every day, and often people buy the equipment that is the least efficient, thereby committing
themselves to higher energy bills for ten to twenty years at a time, depending upon the life of the
equipment. At the same time, people often overlook the investment opportunities that the more
efficient equipment represent, 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).

      Under the President's Climate Change Technology Initiative (CCTI), EPA manages a
number of efforts such as the ENERGY STAR programs and the EPA portion of the Partnership for
aNew Generation of Vehicles (PNGV) to remove barriers in the marketplace and deploy technology
faster in the residential, commercial, transportation, and industrial sectors of the economy.  EPA
programs  do not provide financial subsidies.   Instead, they work  by overcoming  widely
acknowledged barriers to energy efficiency - lack of clear, reliable information on technology
opportunities; lack of awareness of energy efficient products and services; lack of financing options
to turn life cycle energy savings into initial cost savings for consumers; and low incentives to
manufacturers for efficiency research and development (R&D).
                                         VI-26

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       The Agency will also continue focusing on climate change activities that would provide
co-benefits to the specific country and the global commons. By recognizing and providing support
for in-country environmental issues such as local air quality, energy access and efficiency, cleaner
production, and solid waste management (for methane reduction), global reductions in green house
gas emissions are gained.

       In addition to CCTI programs, EPA manages one other programmatic climate change effort,
EPA's Global Change Research Program,  This program is an assessment-oriented program
committed to evaluating the potential consequences of global change for human health, ecosystems,
and socioeconomic systems in the United States. EPA also assessed the potential to adapt to global
change in order to reduce the risks and take advantage of opportunities presented by global change.
The long-term goal of the GCRP is to understand and articulate, in terms that are meaningful for
decision-makers and other stakeholders, the potential consequences of global environmental change
for human health and ecosystems in the U.S.

Program Accomplishments

       EPA has had substantial success across its CCTI and global change research efforts. Through
1999, EPA's CCTI programs  (see Table 1) are substantially reducing emissions of carbon dioxide
and other greenhouse gases such as methane and perfluorocompounds (PFCs). These programs have
reduced U.S. greenhouse gas emissions by more than 115 million metric tons carbon equivalent
(MMTCE), while also saving families and businesses over $11 billion on their energy bills and
keeping roughly 275,000 tons of smog-forming nitrogen oxide (NOJ pollution from entering the air.
                              Table I:  EPA's Climate Programs
  Key Sector
 CCTI:
 Buildings
  Prosjram
ENERGY STAR Programs
               Supply-focused programs
   Activity/Initiative
ENERGY STAR Buildings and Green Lights Partnership
                                    ENERGY STAR Labeled Products
                                    ENERGY STAR Homes
                     Clean Power (2001 initiative)
  CCTI: Industry
Carbon Reduction
Programs (CO2)
Climate Wise
                                    Combined Heat and Power Initiative
                                    Clean Power (2001 initiative)
                                    Industry Consultations (2001 initiative)
                                     Waste Wise
                                          VI-27

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                                Table I: EPA's Climate Programs
 Key Sector
  Program
                Methane Programs (CH4)
                Programs to Reduce High
                Global Warming Potential
                Gases (HFCs, PFCs, SF6)
Activity/Initiative
                       Natural Gas STAR Program
                                       Landfill Methane Outreach Program
                                       Coalbed Methane Outreach Program
                                       Agricultural Programs (Ruminant Livestock Outreach andAgSTAR)
                                       Landfill Rule
                        Voluntary Aluminum Industrial Program
                       PFC Emissions Reduction Partnership for the Semiconductor Industry
                                       SF6 Emission Reduction Partnership for the Electric Power Systems
                                       SF6 Emission Reduction Partnership for the Magnesium Industry
                                       Partnership with HCFC-22 manufacturers to reduce HFC-23 emissions
                                       Significant New Alternatives Program (SNAP)
 CCTI:
 Transportation
Transportation System Efficiency    Commuter Choice Initiative

          Voluntary Demand Management Partnerships
                Partnership for a New
                Generation of Vehicle
                (PNGV)
                21" Century Truck
                       Advanced (Tier II) Light Duty Engine
                       Advanced Mechanical-Hybrid Drivetrain
                                       Environmental Sport Utility Vehicle (EnSUl'j (2001 initiative)
                       Line-Haul Truck, Urban Delivery Truck, and Urban Bus Initiatives (2001
                       initiatives)
 CCTI: Carbon Removal
 CCTI: State and Local Outreach Program
 CCTI: International Capacity Building
 Global Change Research
       These programs have locked in substantial 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 1999 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 1999,
organizations and consumers across the country -will save more than $25 billion through 2015, and,
greenhouse gas emissions will be reduced by more than  230 MMTCE through 2015 (cumulative
reductions based upon estimated 1999 achievements.)
                                              VI-28

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       These programscontinueto be highly cost-effective approaches for delivering environmental
benefits across the country. For every dollar spent by EPA on its technology deployment programs,
these programs have reduced greenhouse gas emissions by more than 2.5 tons of carbon dioxide
equivalent and delivered $70 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
CCTI has produced important technological advancements that will generate substantial energy and
carbon benefits in future years, while improving America's competitiveness.  EPA has been also
successful with its Global Change Research Program. EPA has completed preliminary assessments
of regional scale consequences of climate change at 2 geographic locations, as well as the Human
Health sectoral assessment. Completion of these efforts means that EPA has met most of its GPRA
performance goals for this research program.  The third geographic assessment is behind schedule
due to  difficulties obtaining a high-quality project proposal able to pass rigorous scientific peer
review.


In 1999 alone, the CCTI programs:
•   reduced greenhouse gas emissions by 44 million metric tons of carbon equivalent (MMTCE);


•   reduced energy consumption by about 55 billion kilowatt hours;

•   successfully demonstrated 61 miles per gallon (gasoline equivalent) on a mid-size research
    chassis at 3,500 pound test weight with a state-of-the-art diesel engine and an EPA-invented,
    patented, and developed hybrid drivetrain;

•   and worked with 9-developing countries to develop important infrastructure for decreasing
    greenhouse gas emissions.


    (These are the  four primary GPRA performance measures  for EPA's CCTI programs.
    Each of the goals is on target for 1999 and PNGV has been met. There are also goals for some
    of the key subparts of EPA's CCTI. Table 2 shows that these goals are on target as well.)


Through 1999, EPA's CCTI programs have also:
•   offset growth in greenhouse gas emissions above 1990 levels by about 19%;
                                        VI-29

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•   conserved enough energy to light 50 million homes for the year;
•   prevented NOx emissions equivalent to the annual pollution from 75 power plants; and


•   avoided greenhouse gas emissions equivalent to eliminating the pollution from more than 35
    million cars for the year.

Key Program Accomplishments
                             Figure 1. Overall Goals and
                         Accomplishments for CCT1 Programs
                         Annual Achievements
                         Annual Goals
                    1995
1996
1997
1998
1999    2000
       EPA's climate change programs are on target to meet their greenhouse gas reduction goals
in 1999 as shown in Figure 1  and are meeting the challenge of substantially higher emissions
reduction goals.  Many of the key EPA programs have performed  above their specific goals for
reducing greenhouse gas emissions and energy consumption, as shown in Table 2.


       The programs have a number of key accomplishments through the end of 1999 that are
highlighted hi Tables 3, 4, 5, and 6 for the buildings, industry, transportation and other sectors,
respectively.
                                              VI-30

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                        Table 2.  Goals and Accomplishments for Key Performance Measures: 1995 through 2000*
Program Area/
Key Gases
Buildings
Industry
CO2
CH4
PFCs, SF6
MFCs
Transportation
State and Local
Total
1995
Accomplished
kWh
Saved
(billion)
5.6
0.7
na
na
na
na
6.3
MMTC
E
reduced
1.2
1.2
2.5
2.7
0.0
0.1
7.7
1996
Accomplished
kWh
Saved
(billion)
10.8
1.7
na
na
na
na
12.5
MMTCE
reduced
2.4
1.8
3.1
7.1
0.1
0.2
14.7
1997
Goal/Accom plished
kWh
Saved
(billion)
18.9/17.2
0.0/1.9
na
na
na
na •
18.9*/19.l
MMTCE
reduced
3.6/3.4
3.5/4.2
2.4/4.2
6.3/8.5
0.1/0.2
1.1/1.5
17.0V22.0
1998
Goal/ Accomplished
kWh
Saved
(billion)
30.0/33.2
0.0/3.4
na
na
na
na
29.7*/36.6
MMTCE
reduced
5.9/6.4
4.6/5.9
5.0/5.4
8.7/10.4
0.4/0.3
1.3/1.6
25.9V29.8
1999**
Goal/ Accomplished
kWh
Saved
(billion)
41.7/49.9
4.3/5.9
na
na
na
na
46.1VS5.8
MMTCE
reduced
8.7V10.2
7.2*77.7
8.5V8.5
10.7V14.9*
1.9*/1.1
1.6+/1.6
38.7*/43.9
2000
Goal
kWh
Saved
(billion)
53.4
5.6
na
na
na
na
59. 1 +
MMTC
E
reduced
12.7*
9,1*
14.0*
14.5**
5.7*
1.7*
58.0*
* Metrics are not applicable to PNGV, International Capacity Building or Global Change Research.
        * These results are estimated; final results will be available in Spring 2000.
        * GPRA performance measure
        * These goals and accomplishments do not include EPA's efforts on self-chilling cans, which EPA plans to integrate as part of the next review and
         revision of CCTI for the Third National Communication under the Framework Convention on Climate Change.
                                                               VI-31

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      Table 3. Key Program Accomplishments for EPA's Buildings Initiatives Through 1999
Program Area
                                  Accomplishments
             2
             2
             a.
             ai

             I
             I
             Bd
             §
                 The ENERGY STAR Buildings and Green Lights Partnership has had great success partnering with
                  organizations; partners now represent 15 percent of the U.S. building floor space.

                 EPA has been successful with its public sector-based work. With more than 400 school partnerships, EPA
                  is bringing superior building performance into the classroom, while reducing energy bills by over $270
                  million since 1995 (enough money to buy over 5 million textbooks or hire 5,400 teachers). EPA is also
                  working with more than 170 state and local governments to overcome key financing and budgeting barriers
                  which continue to be a major hurdle to energy efficiency projects in the public sector.

                 EPA continues to work with small businesses and organizations to help them lower their overhead through
                  lower energy bills. Over 2,600 small businesses and organizations are working with ENERGY STAR.

                 EPA worked with building owners to offer a new bench marking tool that identifies the most efficient 25
                  percent of the commercial building stock with the ENERGY STAR Buildings label. With this tool, all
                  buildings, new and old, have the opportunity to save energy, save money, increase asset value and prevent
                  pollution. EPA  has developed this tool for the predominant building type (office buildings) and is working
                  to expand it to other key building types such as  schools.	
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 30% public awareness as of 1999.

EPA introduced new Energy Star-labeled products — home audio and DVD products, such as CD players,
 cassette decks, and DVD players.  ENERGY STAR home electronic products now can save Americans
 over $1 billion annually.

The program represents 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.

The program has signed on 1,200 manufacturers as ENERGY STAR partners.

EPA has engaged more than 55 utilities/energy service providers in 20 states that serve approximately 30%
 of the households in the U.S. in promoting energy efficiency with the ENERGY STAR Label.

The program has partnered with more than 20 retailers to promote ENERGY STAR products in more than
 4,200 storefronts across the country.

The program has encouraged more than 15 state and local governments to adopt pro-active energy
 efficiency policies to save taxpayer dollars (i.e., either legislation requiring the purchase of ENERGY
 STAR products or energy efficiency resolutions).
                 The ENERGY STAR Homes program has more than 1,000 builder partners, representing about 5.4 percent
                  of the total builder market.
                 Nearly 13,000 ENERGY STAR Homes have been built, locking in financial savings of $93 million over the
                  next 30 years for homeowners.
                 EPA has worked with financiers to make mortgages and loans with special terms for energy-efficient
                  products widely available to consumers. Widely recognized Wall Street firms as well as smaller financial
                  institutions are seeing the value of promoting energy efficiency. In 1999, four national lenders, including
                  Greentree, Household Finance, Chase Manhattan and Countrywide, and over twenty regional lenders
                  offered ENERGY STAR loans and mortgages.
                 The ENERGY STAR Program has laid the ground work for an Existing Home Improvement Program that
                  targets whole-house as well as whole-room energy efficiency improvements, building on the concepts from
                  the ENERGY STAR Labeling and New Homes Program.
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       Table 4.  Key Program Accomplishments for EPA's Industry Initiatives Through 1999
Program Area
                                         A ccomplishments
 Carbon
Reduction
Programs
            Climate Wise has partnered with over 550 companies, representing 13% of U.S. industrial energy use and continues
 strong efforts with small and medium-sized companies (more than 44% of partner companies have 100 or fewer
 employees).
 Climate Wise successfully provided innovative partner support tools and technical exchange opportunities. Climate
 Wise developed and unveiled Emissions Tracking Software enabling partners to track energy, water, and solid and
 hazardous waste reduction projects and successfully launched Peer Exchange Partnerships, to bring companies
 together to share best practices and lessons learned, in three additional states and in two cities.
 Climate Wise promoted new opportunities for partners to choose climate-friendly products by assisting in the
 development of the climate neutral initiative and "Climate Care" products and services. These are products whose
 emissions have been eliminated or offset (through investments in energy efficiency, renewables, and sequestration
 projects) to neutralize climate impacts. Climate Wise also held workshops, educating nearly 100 industrial
 companies, designed to help companies purchase renewable energy technologies or clean power.
            EPA and DOE established an ENERGY STAR Combined Heat and Power (CHP) Award for highly
             efficient/cost-effective CHP projects. Winners will be recognized for leadership toward the Administration's goal
             of doubling CHP capacity by 2010.
            EPA and DOE agreed to advance key policies for achieving the national CHP goal: open and fair markets for
             electric power, environmental regulations/policies that appropriately treat efficient generation of heat and power,
             and fair tax treatment.
            Waste Wise now has nearly 1000 partners who have reported reducing over 7.8 million tons of waste while saving
             more than $250 million through the end of 1998 from waste prevention and recycling.
            WasteWise broadened its audience to include the federal sector and will fully launch this new effort in 2000.
            WasteWise initiated a new challenge to reduce transport packaging which now includes 40 partners.
 Methane
 Programs
The Natural Gas STAR Program represents 68% of transmission mileage, 45% of service connections, and 38% of
 production; and expanded into the gas gathering/processing sector.
The Landfill Methane Outreach Program CLMOP) assisted in the development of over 40 landfill gas-to-energy
 projects with an additional 83 projects under construction and expected to be online soon.  The LMOP provided
 technical and marketing support to another 100 landfills and signed on 70 allies, for a new total number of LMOP
 allies of over 200.
The Coalbed Methane Outreach Program (CMOP) helped reduce methane emissions through project development
 support at 21 project sites. CMOP provided high-quality, project-specific information to project developers.
EPA assisted swine and cattle producers in developing waste management systems that produce farm revenues and
 reduce water and air pollution, as well as improving livestock efficiency. About 8 million kWh/yr of renewable
 energy was produced from farms capturing methane to provide energy for the farm and local community.
 Programs
 to Reduce
   High
  Global
 Wanning
 Potential
  Gases
 EPA continued work with 12 of the 13 US primary aluminum in producers to better understand the generation of
 PFCs in the smelting process and to quantify smelter-specific emissions.
 EPA supported the World Semiconductor Council (which represents over 90% of world production) in setting a
 global PFC emission reduction target.
 EPA joined with 50 electric utilities and local governments to reduce emissions of SF6 from electrical transmission
 and distribution equipment such as circuit breakers. Over 80% of SF6 sales are to electric power systems.
 EPA partnered with twelve U.S. magnesium producing and casting companies to reduce emissions of sulfur
 hexafluoride (SF6), the most potent greenhouse gas identified by the EPCC.
 EPA partners used process optimization and abatement to reduce emissions of HFC-23, the most potent of the
 HFCs, which is a production by-product of HCFC-22 manufacture.
 SNAP continued to identify safe substitutes for ozone-depleting substances, A potential refrigerant substitute,
 NARM-22, was listed as unacceptable and SNAP banned the use of HFC-134a and HFC-152a in self-chilling
 beverage cans.
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    Table 5. Key Program Accomplishments for EPA's Transportation Initiatives Through 1999
Program Area
                                   Accomplishments
Transportation
  Efficiency
EPA launched a new National Commuter Choice Initiative which highlights recent changes in Federal tax law
 that make it easier for employers to offer a variety of commute options.
EPA continued to develop a joint outreach effort, "It All Adds Up to Cleaner Air", with the U.S. Department of
 Transportation to raise public awareness of the connections between travel choices, traffic congestion, and air
 quality at the national and local level.  Over 60 communities agreed to participate in this effort.
EPA's Transportation Air Quality (TRAQ) Center increased its efforts to assist state and local communities to
 develop transportation strategies and voluntary mobile source programs that respond to unique local conditions.
 Specifically, the TRAQ Center provided transportation program information and tools, technical assistance, key
 contacts and funding sources, and partnership opportunities.
EPA continued to develop, assess, and encourage innovative, market-based strategies for the more efficient use
 of the overall transportation system.
EPA developed and disseminated analytical tools to assist state and regional partners in assessing the impact of
 the local transportation sector upon climate change.	
   PNGV
EPA demonstrated 61 miles per gallon (gasoline-equivalent) on a mid-size research chassis at 3,500 pound test
 weight with a state-of-the-art diesel engine and an EPA-invented, patented, and developed hybrid drivetrain.
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        Table 6. Key Program Accomplishments for Other Initiatives Through 1999
  Program Area
                                 Accomplishments
  State and Local
     Outreach
     Program
EPA continues to help State and local governments voluntarily complete greenhouse gas emissions inventories.
 Now 34 out of 35 greenhouse gas emissions inventories are completed, including 5 completed in 1999.
EPA assists State and Local governments voluntarily completing greenhouse gas emission reduction strategies.
 Of the 26 state plans initiated, 14 have been completed and the remaining 12 are expected before the end of
 2001. Five of these plans have identified strategies that could reduce greenhouse gas emissions by 34 MMTCE,
 or 2% of U.S. 2010 emissions, while saving over $600 million per year. 68 cities and counties, representing
 nearly 29 million people and 9% of US GHGs, have begun developing inventories and implementing plans,
 some already reducing over one million tons of carbon-equivalent each year.
Demonstration, education and outreach projects have been launched with State and Local partners and NGOs
 such as International City/County Management Association  and the National Governors Association to provide
 members with information on clean technologies, climate change science and impacts, conferences and
 workshops. EPA developed a web-based state mitigation database that includes over 900 actions, with a set of
 case studies illustrating some of the actions/policies taken. EPA also completed an outreach toolkit for public
 decision-makers, including over 100 publications for use by state and local officials interested in conducting
 outreach work within their communities.
    International
     Capacity
     Building
EPA made notable progress in increasing the engagement of 5 developing countries on strategies to address
 climate change. Technical support was provided to 4 developing countries to assist in the development of
 National Action Plans.*
EPA, with AID and DOE, assisted 8 of the 10 developing countries that submitted their National
 Communications as required under the UN FCCC.
The U.S. Initiative on Joint Implementation {US IJI) reviewed 5 projects and assured approval to the host
 foreign governments.
EPA submitted reports on the US Greenhouse Gas Inventory and the Initiative on Joint Implementation on
 schedule to the Climate Secretariat. Analyses were underway or completed to assist the USG in making key
 policy decisions regarding land use change and forests; technology cooperation; and other environmental
 benefits of greenhouse gas mitigation.	
  Global Climate
     Research
EPA has completed preliminary assessments of regional scale consequences of climate change at 2 geographic
 locations.
EPA also completed a Human Health sectoral assessment
Program Goals and Objectives for 2001 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 emissions of major air pollutants such as NOXJ sulfur dioxide SO2,
and carbon dioxide.  At the same tune, American families and businesses spend over $500 billion
each year on energy bills - more than we spend on education. Technologies are available today that
can cut this energy use significantly. Other technologies are being developed that may provide even
more dramatic opportunities — such as a car that can reduce fuel use and greenhouse gas emissions
from today's standards by two-thirds without sacrificing safety  and performance.
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       Over the next several years, EPA will build upon its government/industry partnership efforts
to achieve even greater greenhouse gas reductions by taking advantage of additional opportunities
to simultaneously reduce pollution and energy bills.  EPA will continue to break down market
barriers and foster energy efficiency programs, products and  technologies, and cost effective
renewable energy. In 2001, EPA's climate change programs are projected to:

•      reduce greenhouse gas emissions from projected levels by 66 MMTCE annually through its
       key programs, as shown in Table 7, reducing the growth in greenhouse gas emissions above
       1990 levels by about 20%;

•      reduce U.S. energy consumption  from projected levels  by more than 70 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 170,000 tons in 2001;

•      provide over $9 billion in energy bill  savings to consumers and businesses that use energy
       efficient products  for the year;

•      demonstrate  technology for an 80 miles per gallon mid-size family sedan that has low
       emissions and is safe, practical, and affordable;

•      assist  12 to 14 developing counties and countries with economies in transition in building
       their capacity to reduce  emissions of greenhouse gases through cost-effective measures;
•      in close cooperation with USDA, identify and develop specific opportunities to sequester
       carbon in agricultural soils, forests,other vegetationand commercial products, with collateral
       benefits for productivity and the environment, and with  carbon removal potential of up to
       40 MMTCE by 2010; and

•      assess the consequences of global change on human health and ecosystems.

Benefits of Funding Increase

       Over the next decade there are important opportunities to further reduce U.S. greenhouse gas
emissions and local air pollution, and improve the U.S. economy. The 2001 CCTI request of $227
million is part of the President's 5-year Climate  Change Technology Initiative included in the FY
 1999 Budget. Increased funding for technology deployment is  critical to cost-effectively reduce
greenhouse gas emissions. Both technology deploymentand technology R&D are essential elements

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of a balanced strategy to address climate change  in  both the near-term and the  long-term.
Technology deployment efforts help the marketplace more rapidly adopt existing yet underutilized
technologies as well as to more rapidly adopt new technologies from the R&D pipeline.  EPA is
requesting a $ 124 million increase in FY 2001 funding for its CCTI programs in order to target these
additional opportunities throughout all sectors of the economy.

       Over the next decade, the increase in funding for EPA will deliver at least:
•      335 MMTCE of cumulative greenhouse gas emission reductions since 1990;

•      Reductions of about 3 5% of the growth in greenhouse gas emissions expected by 2010 above
       1990 levels (substantially greater the reductions of about 20% of the expected growth at
       current funding levels);

•      $35 billion in energy savings to families and businesses; and

*      850,000 tons of NOX emissions reductions.

       These additional reductions will be achieved through efforts in the key program areas as
shown hi Table 7,
••••••" ' ' -: Table? '
Overview of Greenhouse Gas Reductions from Key Program Areas in 2001 And Over the Next Decade ( MMTCE)
Key Program Area/
Key Gases
Buildings
ENERGY STAR /Supply focused Programs
Industry
Carbon Reduction Programs
Methane Programs (CH4)
High GWP Programs (HFCs, PFCs, SF6)
Transportation
PNGV
Transportation System Efficiency
Stale and Local
TOTAL
1999
Estimate
Performance

10.2

7.7
8.5
14.9

na
1.1
1-6
44
2000
Annual
Performance
Goals

12.7

9.1
14.0
14.5

na
5.7
1.7
58
2001
Annual
Performance
Goals

15.0

9.1
15.1
18.2

na
6.2
1.9
66
Improved Results
200 1-20 10 from
President's 2001
CCT! Request **

115

85
20
90

under evaluation
20
5
335
 ** These are not the entire reductions in emissions of greenhouse gases that will result from the increased funding. The
 equipment and
 practices that private and public entities invest in can have lifetimes much longer than 10 years.
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FY 2001 Change from FY 2000 Enacted

CCTI: Buildings Sector

FY 2000 Enacted:          $42,640,900

FY 2001 Request:          $80,063,800

       EPM               +$37,422,900

       The Buildings Sector, which includes both homes and commercial buildings, offers a large
potential for carbon reductions using technologies that are on the shelf today. However, consumers
and businesses continue to invest substantial resources in equipment that is relatively inefficient,
resulting in higher energy bills and higher pollution levels. 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 35% of the growth in greenhouse gas emissions above  1990 levels expected by
2010. EPA's programs will contribute more than 60 MMTCE annually per year in greenhouse gas
reductions by 2010 while saving businesses and consumers about $9 billion. The efforts necessary
in 2001 to achieve these 2010 goals are detailed in Table 8.
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                         Table S. Buildings Programs: Description of Planned Activities
                                    Within FY 2001 President's Budget Request
ENERGY
  STAR
 Buildings
 and Green
  Lights
EPA will actively promote its new buildings bench marking tool and will work with building owners and managers to
 benchmark 10,000 additional buildings including 3,000 schools and 1,000 federal facilities (5,000 additional benchmarks
 including 1,500 schools and 500 federal facilities at current funding level).
EPA will award 2,500 additional ENERGY STAR labels to buildings that reach a benchmark score between 75 and 100 (1,250
 at current funding level).
Continue to develop bench marking tools for additional space types such as healthcare, lodging, food service and sales, and
 public assembly, providing bench marking capabilities for 90% of the total US floor space. (Bench marking capabilities for 2
 additional space types, representing a total of about 75% of total US floor space at current funding level).
Continue to actively recruit new small businesses and organizations into the ENERGY STAR Small Business program to reach
 over 8,000 participants by the end of 2001 (5,000 at current funding level).
Expand partnership to represent more than 19% of building square footage (17% at current funding level).
Expand Public sector work to increase the number of partnerships with schools and universities to over 1,000 (700 at current
 funding level), and state and local governments to over 500 (350 at current funding level).
Expand work to improve the efficiency of the federal government. EPA will work with other agencies to implement key pieces
 of the new Federal Executive Order on building energy efficiency, particularly focusing on assisting agencies to benchmark
 their buildings and to procure energy efficient products.
ENERGY
  STAR
 Products
Achieve 50% public recognition of the ENERGY STAR label in the U.S. (40% at current funding levels)
Expand outreach to consumers on the environmental/financial benefits of using ENERGY STAR labeled products, providing
 information through multiple approaches across about 80% of the United States (50% of the US at current funding levels).
Recruit and support 25 new utility partners (15 at current funding levels) and 2 emerging regional market transformation
 collaboratives (1 at current funding). Increase coverage to 30 states (25 at current funding) and approximately 45% of the U.S.
 population (35% at current funding).
Work with 8 large retail chains such as Sears, Home Depot, Montgomery Wards, etc. to promote Energy Star-labeled products
 through strategic marketing activities (3 retail chains at current funding levels).
Design and implement an initiative for small businesses and retailers to promote ENERGY STAR equipment and products,
 coordinating with ongoing utility efforts, as well as expanding beyond their reach (no effort at current funding levels).
Expand work with state and local governments on purchasing policies for ENERGY STAR products so as to save taxpayer
 dollars, assisting at least 100 state and local governments to institute effective energy efficiency purchasing policies (75 at
 current funding levels).
Train over 10,000 heating and cooling contractors (who meet daily with homeowners), allowing the value and benefits of
 ENERGY STAR to be represented to over 2 million households (about 5,000 trainees at current funding levels).
Add 5 additional products to the ENERGY STAR family (2 at current levels).
ENERGY
  STAR
  Homes
Promote ENERGY STAR Homes in 15 geographic areas (5 at current levels)
Expand ENERGY STAR Program to all military housing and expand participation by national builders such as Pulte, Ryan and
 Centex to include 75% of their housing stock (25% at current funding)
Develop ENERGY STAR Kitchen promotions with 6 utilities or market transformation groups and 2 national retail chains (3
 utilities and 1 chain at current funding)
Develop and promote ENERGY STAR package in Remodeling with 3 utilities or market transformation groups and 1 national
 chain (nothing at current funding)
Roll out National ENERGY STAR Duct Program and Air-Sealing Program and develop and roll out National Home
 Improvement Label for identifying efficient existing homes (2 to 3 pilots at current levels)
  Clean
  Power
  (2001)
Develop public information materials concerning the environmental implications of electricity choices for electricity purchasers.
Develop and implement outreach plan using networks from existing partnership programs as well as networks beyond the
 partnership base.
Assist and develop 5 clean power projects  in the buildings sector that can be case studies for cost-effective investment in dean
 power technologies.	
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 CCTI: Industry Sector
 FY 2000 Enacted:
                  $21,991,700
FY 2001 Request:
                  $63,686,100
         EPM
                 + $41,694,400
         EPA will continue to build on the success of the voluntary programs in the industrial sector,
 focusing on reducing CO2 emissions in the extremely energy-intensive industries and continuing the
 highly successful initiatives to reduce methane emissions and emissions of the high global warming
 potential gases.  EPA will expand its existing partnerships with the goals of: (1) doubling the rate of
 energy and resource efficiency improvements in industry between now and 2010 (working with DOE),
 (2)  cost-effectively returning emissions of methane to  1990 levels or below by 2010, and  (3)
 cost-effectively limiting emissions of the more potent greenhouse gases (MFCs, PFCs, SF6). EPA will
 deliver an estimated 123 MMTCE annually by 2010 from these efforts. The efforts necessary in 2001
 to achieve these 2010 goals are detailed in Table 9.
  Table 9. Industry Programs: Description of Planned Activities Within FY 2001 President's Budget
                                     	Request
   Climate
     Wise
Recruit 100 additional partner companies, bringing the total number of partners to nearly 800 partner companies
 representing nearly 15% of US industrial energy use (50 additional partners at current levels)
Expand Peer Exchange Partnership to enhance recruitment and program implementation efforts, holding 8 to 10
 Peer Exchanges Partnerships across the country (4 to 6 Peer Exchanges at current levels).
Expand work with the private sector to create a market for products whose emissions have been offset or
 neutralized through energy efficiency, use of renewable power and carbon sequestration, and expand efforts to
 encourage industrial partners to purchase renewable energy technologies and clean power, through holding 10
 state workshops in areas addressing restructuring (3 to 5 workshops at current funding levels) and by developing
 tools for potential purchasers of clean power such as case studies of green power purchasing strategies and a
 resource guide for potential purchasers (minimal activity at current funding levels).
Launch an initiative to enhance the production and use of less carbon intensive "blended" cements, cements
 produced with some "waste materials" such as coal fly ash and blast furnace slag, beginning to reduce the current
 carbon intensity of cement production 1% to 3% below current levels and displace "waste materials" destined for
 landfills or being stockpiled on site (little market impact at current funding levels)
  Combined
    Heat and
     Power
    Initiative
Expand outreach to 15 key State air and utility regulators to overcome regulatory obstacles and raise awareness of
 the multi-pollutant benefits of CHP and policy options for accelerating new project development (5 jurisdictions
 at current levels).
Assist and develop 5 clean power projects in the industrial sector that can be attractive case studies for
 cost-effective investment in clean power technologies (no projects at current levels)
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Table 9.  Industry Programs:  Description of Planned Activities Within FY 2001 President's Budget
                                                    Request
   Clean
  Power
   (2001
 Initiative)
Develop new efforts to provide organizations with tools and incentives to purchase green power. Building upon
 DuPont's renewable energy purchase announcement (a Climate Wise partner), EPA will develop an effort that
 clarifies what green power is, provides technical assistance, and uses appropriate recognition mechanisms to
 promote green power purchasing across-this sector.
Develop and implement pilot projects to link clean power and clean air. Clean energy technologies offer attractive
 opportunities for air quality improvement For example, hundreds of thousands of stand-alone stationary diesel
 installations, largely unregulated, contribute significantly to air quality problems in some areas, and many of
 them may be cost-effectively replaced with zero emission technologies such as wind and solar.  EPA will
 facilitate 5 pilot projects where zero emission technologies can effectively Improve air quality (no projects at
 current funding).
 Industry
 Consulta-
   tions
  (2001)
Work with key energy-intensive industries such as aluminum, cement, chemicals, steel, petroleum, airlines, and
 food processing to develop good inventories of greenhouse gas emissions, complete assessments of opportunities
 for cost-effective greenhouse gas reductions, and develop corporate commitments and plans for action to reduce
 greenhouse gas emissions. EPA would work broadly with 7 to 10 industries (0 to 2 industries and current levels).
  Waste
   Wise
Expand WasteWise to include 1,400 partners (1,250 partners at current levels).
Expand WasteWise to product stewardship and materials management using the principles of Extended Product
 Responsibility (EPR)), promote product-specific challenges (e.g., computers, carpet, plastic packaging, paper)
 that involve multiple links in the product chain and assist WasteWise partners to make changes that reduce the
 life cycle environmental impacts of these products. Through enhanced marketing and technical assistance, EPA
 will recruit an increased number of WasteWise partners with EPR-speciflc product design or procurement goals
 (only  moderate increase at current funding levels).
Expand the Climate and Greenbuildings Initiative to catalyze waste and materials management-related activities
 in the areas of construction and demolition (C&D) collection programs, greenbuilding criteria development, and
 WasteWise recycled-content building challenges.  EPA will assist local governments with the development of
 C&D recycling collection programs (a large potential growth area for recycling at the State and local level),  spur
 demand for recovered materials by supporting greenbuilding programs, and launch WasteWise C&D and/or
 recycled building product challenges. EPA will provide direct assistance for program development (no direct
 support at current levels)
Expand the Climate and Biomass Initiative that promotes technologies for utilizing biomass materials and creates
 multiple use markets for source separated biomass waste, fulfilling key elements of Executive Order (EO) 13134.
 EPA will promote adoption of technologies and products through sector-based challenges (only performing
 analytical work at current funding levels).
 Methane
 Programs
Expand the Natural Gas STAR program in two sectors to represent 65% of domestic gas production and 20% of
 gas processing while maintaining representation of 85% of gas transmission pipeline miles and 50% of
 distribution service connections (55% of domestic gas production and 10% of gas processing at current levels,
 and 85% of gas transmission pipeline miles, 50% of distribution service connections).
Expand EPA's Coalbed Methane Outreach Program (CMOP) to work with key stakeholders to expand the market
 for new greenhouse gas reduction technologies, including flares  at wells producing medium quality gas and
 combustion technologies appropriate for mine ventilation air, EPA will facilitate 2 demonstration projects (none
 at Current levels).
Expand the Landfill Methane Outreach Program (LMOP) to assist a total of 225 landfills with gas utilization
 projects, to promote newer energy applications, and to increase methane recovery efficiency at existing projects
 (205 landfills at current funding).
In the agriculture sector, continued expansion of methane-reducing technologies will help ensure clean water and
 air for the livestock sector.
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Table 9. Industry Programs:  Description of Planned Activities Within FY 2001 President's Budget
                             	       Request	
'rograms to
  Reduce
   High
  Global
 Warming
 Potential
  Gases
The Voluntary Aluminum Industrial Partnership (VAIP) will continue to deliver reductions, with VAIP
 participants reducing the industry's emissions of PFCs by an estimated 45 percent.
EPA will work with the US semiconductor companies as they set company-specific greenhouse gas reduction
 goals within the framework of the World Semiconductor Council global commitment.
Enhance recruitment for the SF6 Emissions Reduction Partnership for Electric Power Systems (utilities) beyond
 the expected  150 partners (representing 40% of the industry's generating capacity) to more than double the
 expected greenhouse gas reductions.
Enhance recruitment (beyond 70% of US primary magnesium and casting production) and research of emission
 reduction technologies for the SF6 Emissions Reduction Partnership for the Magnesium Industry, to increase
 expected reductions by 20%.
Maintain effective partnership with chemical manufacturers to reduce emissions of HFC-23.
Expand the stewardship programs to reduce emissions from other key  sources such as manufacturing and
 distribution losses of HFCs, PFCs, and SF6, and other high GWP gas emitters, yielding estimated reductions in
 high GWP gas emissions of 8 MMTCE by 2010 (0 at  current funding).
Expand SNAP and related programs to require recovery and recycling of alternative refrigerants,  including a
 number of GHGs; to work with the International Maritime Organization (IMO) to substantially reduce GHG
 emissions from ships; to facilitate and promote new supermarket refrigeration technology that reduces refrigerant
 charge and leakage; and to promote liquid carbon dioxide or nitrogen for use in transport refrigeration.
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CCTI: Transportation Sector

 FY 2000 Enacted:           $29,604,800

 FY 2001 Request:           $65,084,000

        EPM               +$9,390,200

        S&T              +$26,089,000

        Transportation (cars, trucks, aircraft, marine) accounts for almost one third of U.S. carbon
 dioxide emissions and represents one of the fastest-growing sectors for greenhouse gas emissions. EPA
 will continue its efforts to develop a more efficient family automobile as part of the Partnership for a
 New Generation of Vehicles (PNGV), which brings together seven Agencies and twenty Federal
 laboratories with the U.S. domestic auto makers to develop technologies for a new generation of ultra-
 clean, ultra-efficient vehicles. PNGV's long term "Clean Car" goal is to develop a mid-size family
 sedan meeting Tier II emission levels with up to triple the fuel efficiency of today's counterparts,
 without sacrificing affordability, performance, or safety. EPA's FY 1999 attainment of 61 mpg in a
 3,500 pound test chassis is on pace to achieve future PNGV efficiency goals with consequent post-2003
 energy and carbon reductions.

        With this funding, EPA will make critical enhancements in its efforts to promote energy
 efficiency and reduce greenhouse gas emissions from the transportation sector. Most of the increase
 is targeted for EPA's efforts to develop clean and efficient vehicle technology. First, the increase will
 enable EPA to demonstrate Tier II emission levels in a diesel-cycle engine operating on petroleum-
 based fuels (e.g., gasoline-Ike or diesel-like fuel). EPA has developed unique engineering concepts
 that will exploit the high-compression,high-expansioncharacteristics of diesel-cycle engines to achieve
 very high fuel efficiency, while operating at air/foel ratios that permit use of the best emission control
 strategies of spark-ignition engines. The result will be an engine that is simultaneously very clean and
 very efficient.

        Second, EPA will meet the urgent need to extend its PNGV engineering concepts to trucks. As
 part of this effort, the Agency will be at the core of a new government-industry initiative to develop a
 new generation of clean and efficient line-haul and urban trucks and buses.  In addition, EPA will
 develop a new partnership with the automobile industry to demonstrate technology for  a sport-utility
 vehicle (SUV) that will achieve three times the fuel efficiency of today's comparable models, without
 sacrificing towing capacity,  emissions, safety, customer utility, or economics. This Environmental
 SUV Initiative will build on PNGV and yield a production concept vehicle by model year 2003 to
 address what has become the highest-selling, fastest-growing class of vehicles in the U.S. market.
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       Transportation policies, plans, and choices have a major impact on carbon dioxide emissions,
other pollutants including criteria air and water  pollutants, redevelopment of brownfields, and
protection of ecological resources.  While technology and market-oriented measures will make a
significant contribution toward reducing emissions, it is critical that federal, state, and local officials
develop transportation plans that have a positive effect on climate change. Transportation officials must
have the necessary information and the tools to plan transportation strategies  that protect our
environment, as well as reduce congestion and support economic growth. To address these issues, EPA
is committed to enhancing both cross-Federal agency partnerships with DOT and DOE, as well as
promoting partnerships with state and local governments and transportation authorities to reduce CO2
and other transportation-related pollutants.

       EPA will also continue its work to support voluntary regional, state and community efforts that
encourage greater travel choices and alternatives to single occupancy vehicle driving such as living
closer  to work, commuting by  train, bus, bike,  or trip chaining, and the concept of "livable
communities"  - compact,  walkable, transit-friendly, and mixed-use development.  EPA  also will
increase its capacity to provide technical assistance to help governments and companies design and
select transportation options that reduce carbon emissions from the transportation sector.

       During FY 2001, EPA will enhance  its outreach efforts to raise public awareness of the
connections between travel choices, cleaner driving, and climate change at the national and local levels.
Providing more information on transportation and climate change involves building community,
business, and government partnerships and communicating with the driving public and youth on such
critical issues as driving habitSj trip chaining, proper vehicle maintenance, Commuter Choice programs,
telecommuting, and alternative fuel options.  EPA's enhanced efforts in the transportation sector are
detailed in Table 10.
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  Table 10. Transportation Programs:  Description of Planned Activities Within FY 2001 President's
                                                  Budget Request
 Transportation
   Efficiency
EPA will continue to support the implementation of a National Voluntary Commuter Choice/Parking Cashout
 Initiative that highlights changes in Federal tax laws which provide new incentives for commuters to consider
 transit, ridesharing, and other transportation alternatives to driving through 'parking cashout' and the ability to
 use pre-tax earnings to pay for commuting expenses, such as transit passes. A cross-agency Federal partnership
 will increase Commuter Choice programs across the Federal sector.

FY 2001 will see an increased emphasis on developing national and state level telecommuting incentives that
 increase the number of employers participating in this specific strategy, as well as the development of innovative
 metropolitan-based efforts that  foster a more transit-supportive environment.

EPA will assist corporations and industries in the transportation construction sector in examining opportunities for
 CO2 emissions reductions through corporate fleet management, alternative fuel/technology strategies, and other
 climate neutral strategies. This would build upon existing EPA programs, such as the climate-neutral fuels
 program,

EPA will work in partnership with the Partnership for Advancing Technology and Housing (PATH) program and
 the National Association of Home Builders (NAHBs) to develop a transportation system efficiency component to
 the PATH program, as well as to continue working cooperatively with the NAHB's Research Center to develop
 and implement a "Green Development" guide and program for local NAHB chapters.

EPA will establish a Partnership Program with states, localities, and industry to recognize significant progress on
 the use of alternative fuel vehicles (AFVs).  This effort will, for the first time, establish a significant EPA role in
 promoting and encouraging the use of dedicated, clean alternative fuel vehicles, such as clean natural gas (CNG),
 electric, and fuel-cell vehicles.  This effort will be done cooperatively with DOT and DOE.

EPA will work with Federal, state, and local transportation officials and organizations to provide technical
 assistance, including GIS and other environmental assessment techniques to metropolitan areas that are interested
 in developing voluntary strategies to reduce carbon emissions from the transportation sector.

EPA will enhance its outreach efforts to raise public awareness of the connections between travel choices, cleaner
 driving, and climate change at the national and local levels.
    PNGV
EPA will demonstrate an optimized, cost-effective mechanical hybrid vehicle powertrain in a chassis test bed that
 will achieve 80 mpg without sacrificing safety or performance.  EPA also will demonstrate Tier II emission levels
 in a unique EPA hybrid engine design utilizing renewable fuel and achieving diesel engine efficiency levels.
Initiate development of a diesel-cycle engine utilizing petroleum-based (diesel- or gasoline-like) fuels that will
 achieve Tier II emission levels. (2001 initiative)
Develop a new government/industry partnership to demonstrate technology by 2003 for a Sport Utility Vehicle
 (SUV) that will achieve three times the efficiency of today's comparable models without sacrificing towing
 capacity, emissions, safety, customer utility, or economics. (2001 initiative)
  21st Century
     Truck
Develop a new government/industry partnership to demonstrate technology for ultra-clean and ultra-efficient line-
 haul trucks, urban delivery trucks, and urban buses. (2001 initiative)                      	
CCTI:  Carbon Removal
FY 2000 Enacted:
                  $1,000,000
FY2001 Request:
                  $3,410,000
         EPM
                + $2,410,000
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       Full funding for EPA's carbon removal program will build international consensus to recognize
credits for removing carbon dioxide from the atmosphere and storing it on agricultural and forest lands.
Living plants are biological carbon scrubbers that can reduce the concentration of carbon dioxide in the
atmosphere.  However, a major hurdle to the acceptance of carbon sequestration is  the current
uncertainty surrounding carbon measurement and accounting and a limited understanding of the
multiple environmental benefits of these actions. With full funding, EPA will be able to work closely
with USD A to make a strong case, built on scientific, economic and environmental analysis to support
carbon sequestration  activities.

       Specifically, with the full increment of funding EPA will conduct integrated assessments to
quantify the associated environmental co-benefits that result from enhanced sequestration. These
benefits include improving soil quality, reducing soil erosion, improving water quality, providing
wildlife habitat, and enhancing other environmental and conservation goals.  EPA will support field
demonstrations of the measurability of tree planting and soil restoration activities.

CCTI: State and Local Climate Change Program

FY 2000 Enacted:          $2,508,000

FY 2001 Request:          $4,525,000

       EPM               + $2,017,000

       EPA's State and Local Climate Change program will continue its efforts as a capacity building
program that provides state and local governments with guidance and technical  information to help
them prepare inventories of their greenhouse gas emissions, assess and build awareness of the impacts
of climate change, develop action plans to reduce emissions, and demonstrate innovative technologies
and policies for reducing emissions. State and local governments have a significant role and home-court
advantage in the reduction of greenhouse gases, provided they are equipped with the tools they need
to integrate climate change into their daily decisions.

       This guidance and technical information will include support to help  states and localities
conduct analyses of the co-benefits of greenhouse gas mitigation, update inventories and action plans
to include  state carbon sequestration opportunities, and climate change policy  impacts on  state
economies; assistance with regional assessments and state-level case studies of potential climate
change impacts and adaptation options, expand outreach to key stakeholders such as state foresters and
agriculture officials, and guidance for stakeholders to develop and implement adaptation measures to
increase resilience to climate variability.
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International Capacity Building

FY 2000 Enacted:           $ 5,594,400

FY2001 Request:           $10,576,200

       EPM                + $4,981,800

       Greenhouse gas emissions from developing countries already constitute more than half of the
global total and are growing rapidly.  EPA is working to secure meaningful participation from key
developing country parties by assisting them to evaluate and implement policies that reduce greenhouse
gas emissions. EPA is building on the success of the U.S. Country Studies Program, a multi-agency
effort started in the early 1990s.  Eight of the 10 national reports so far submitted to the Convention
Secretariat by developing countries have come from Country Studies Program partners.

       Full funding of this program could leverage greenhouse gas reductions. Work would be
expanded with China, Mexico, Chile, Argentina, Brazil, and Korea, while new work would be initiated
with South Africa, Egypt, India, and the Philippines to develop strategies that mitigate greenhouse gas
emissions and reduce concurrent pollution that causes millions  of premature deaths, respiratory
illnesses, and water contamination, as well as cross-boundary pollution.  Full funding would expand
assessment of 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. Full funding also would allow expanded assistance for U.S. businesses to capture new
markets for clean technologies, worth up to hundreds of billions of dollars per year.  EPA can help
boost U.S. competitive advantage while abating GHG by:

•      encouraging other countries to internalize environmental impacts, so that U.S. businesses do
       not compete with manufacturers that do not adequately reduce  their environmental effluents;

•      shaping regulatory  and  infrastructural standards like those of the U.S.,  for  which U.S.
       technologies have been designed; and

       establishing partnerships with selected foreign governments to  reduce barriers to the entry of
       U.S. businesses and technologies into those markets; and

•      helping to adapt U.S. energy efficient and/or environmentally beneficial technologies to the
       conditions of foreign markets.

       improving integration of EPA's efforts with those of DOE, Commerce and other agencies, and
       add environmental credibility to their efforts, for example, for natural gas market reforms.

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       Assisting communities in launching urban air control programs, with emphasis on mobile
       source reduction and transportation controls and planning.


       Working with World Bank and other international organizations to enhance their pollution
       prevention/cleaner production programs.


       providing technical assistance and guidance documents through US trade associations on solid
       waste management and landfill gas technology.
Annual Performance Goals and Performance Measures
Reduce Greenhouse Gas Emissions
In 2001     Greenhouse gas emissions will be reduced from projected levels by approximately 66 MMTCE
           per year through EPA partnerships with businesses, schools, State and local governments, and
           other organizations thereby offsetting growth in greenhouse gas emissions above 1990 level by
           about 20%.

In 2000     Greenhouse gas emissions will be reduced from projected levels by more than 58 MMTCE per
           year through EPA partnerships with businesses, schools, State and local governments, and other
           organizations thereby offsetting growth in greenhouse gas emissions above 1990 level by about
           20%.

In 1999     Greenhouse gas emissions will be reduced from projected levels by more than 3 9 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%. Actual end-of-year FY 1999 data will be available in Spring 2000.
Performance Measures:
FY 1999
Actuals
FY2000
Estimate
FY2001
Request
Annual Greenhouse Gas Reductions •
All EPA Programs
44'
58
66
MMTCE
Greenhouse Gas Reductions
from EPA's Buildings
Sector Programs (ENERGY STAR)
10.2
12.7
15.0
MMTCE
Greenhouse Gas Reductions from EPA's
Industrial Efficiency/Waste Management Programs     7.7 *
               9.1
              9.1
           MMTCE
Greenhouse Gas Reductions from EPA's
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Industrial Methane Outreach Programs
8.5
14.0
15.1
MMTCE
Greenhouse Gas Reductions from EPA's
Industrial HFC/PFC Programs
14.9 :
14.5
18.2
MMTCE
Greenhouse Gas Reductions from EPA's
Transportation Programs
1.1
5.7
6.2
MMTCE
Greenhouse Gas Reductions from EPA's State
and Local Programs

Annual GHG Inventory (FCCC)
1.6 *            1.7


30-Apr-2000


* — estimate
                1.9         MMTCE

                           Inventory
Baseline:    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 updated 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.
Reduce Energy Consumption


In 2001     Reduce energy consumption from projected levels by more than 70 billion kilowatt hours,
            resulting in over $9 billion in energy savings to consumers and businesses.

In 2000     Reduce energy consumption from projected levels by about 60 billion kilowatt hours, resulting
            in over $8 billion in energy savings to consumers and businesses that participate in EPA's climate
            change programs.


In 1999     All targets on track. End-of-year FY 1999 data will be available in Spring 2000.
Performance Measures:
Annual Energy Savings - All EPA Programs
FY1999
Actuals
FY2000
Estimate

60
FY2001
Request


70
                                           Billion kWh
Baseline:    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 updated energy forecasts and economic growth projections.  The baseline is
                                                  VI-49

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            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.


Technology for 80 MPG Sedan


In 2001      Demonstrate technology for an 80 MPG mid-size family sedan that has low emissions and is safe,
            practical, and affordable.


In 2000     Demonstrate technology for a 70 mpg mid-size family sedan that has low emissions and is safe,
            practical, and affordable.


In 1999     Fully demonstrated that an American family car can attain over 60 miles per gallon on the Federal
            Test Procedure without loss in utility, safety, and emissions control performance.
Performance Measures:
FY 1999
Actuals
FY 2000
Estimate
FY2001
Request
Fuel Efficiency of EPA-Developed PNGV
Concept Vehicle over EPA Driving Cycles
Tested
                70
                80
            MPG
Baseline:    The baseline for the 3X or SOmpg PNGV fuel economy goal is the average fuel economy of
            representative domestic midsize family sedans (Concorde/Taurus/Lumina) in model year 1994.
International Capacity Building


lii 2001     Assist 10 to  12 developing countries and countries with economies in transition in developing
            strategies  and actions for reducing emissions of greenhouse gases  and enhancing carbon
            sequestration.


In 2000     Assist 10 to  12 developing countries and countries with economies in transition in developing
            strategies  and actions for reducing emissions of greenhouse gases  and enhancing carbon
            sequestration.


In 1999     Assisted 9 developing countries and  countries with economies in transition in developing
            strategies  and actions for reducing emissions of greenhouse gases  and enhancing carbon
            sequestration.
Performance Measures:
FY 1999
Actuals
FY2000
Estimate
FY2001
Request
Countries Assisted
                10
                10
            Countries
Baseline:    N/A
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Carbon Removal

In 2001      In close cooperation with USDA, identify and develop specific opportunities to sequester carbon
            in agricultural soils, forests, other vegetation and commercial products, with collateral benefits for
            productivity and the environment, with carbon removal potential of up to 40 MMTCE by 2010.
Performance Measures:
Infrastructure for Carbon Sequestration Activities
Developed
FY 1999
Actuals
FY 2000
Estimate
               9/30/2001
FY2001
Request
Baseline:    FY 2001 is the first year of formal carbon sequestration activities.  EPA's focus will be on
            developing an infrastructure. As soon as appropriate, baseline information will be developed.
Analysis,  Assessment, and Reporting Support

In 2001     Provide  analysis,  assessment,  and  reporting  support  to Administration officials, the
            Intergovernmental Panel on Climate Change, and the Framework Convention on Climate Change.

In 2000     Provide  analysis,  assessment,  and  reporting support  to Administration officials, the
            Intergovernmental Panel on Climate Change, and the Framework Convention on Climate Change.
Performance Measures:
FY 1999
Actuals
FY 2000
Estimate

1
FY 2001
Request

1
Annual GHG Inventory (FCCC)                                      1               1           Inventory

Support on 3rd US National Communication to
the FCCC                ,                                                        1           Report

Baseline:    N/A

Research

Global Change Research - Human Health and Ecosystem

In 2001      Assess the consequences of global change (particularly climate change and climate variability) on
            human health and ecosystems.

In 2000     Regional assessments can be expected within the next fiscal year.

In 2000     Assess the impact of global change on ecosystem services.

                                                  VI-51

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In 2000     Assess the consequences of global change and climate variability on human health.

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.
                                                    FY 1999
                                                    Actuals
Performance Measures:
Assess potential effects of global change on
ecosystem services.

Complete a Health Sector Assessment of the potential
consequences of climate change and variability for
public health, for the USGCRP National Assessment
process.

Provide preliminary results from a case study
which will determine how climate change &
variability affect the formation of trop. ozone
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.
FY 2000
Estimate
                                                                    09/30/2000
FY2001
Request
                            indicators
                                                                                                assessment
                                                                    09/30/2000
                            results
                                                                                                info, system
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.
                                                                                                report
                                                                                                report
                                                   VI-52

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Complete a detailed assessment of the co-benefits of several
strategies for adapting to climate change in the U.S.,
accounting for changes in air quality and water quality.
                                           assessment
Assessment reports on  the potential consequences
of global change on three regions (the Mid-Atlantic,
Upper Great Lakes and Gulf Coast) and on
human health.
                                           reports
Baseline:    By 2000 and beyond, provide the capability to assess ecological and associated human health
            consequences of climate change.
Global Change Information Dissemination

In 2001      Disseminate data and information about global change to the public.

In 2000     Assess the human dimensions of Global Change.

In 2000     Assess the consequences of global change and climate variability at a regional scale.

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;
Determine impacts of global change on coastal
ecosystems in the Gulf Coast and Mid-Atlantic

Complete 3 regional assessments of potential
consequences of global change & climate variability
for the USGCRP National Assessment. The 3 regions
are the Mid-Atlantic, Great Lakes, & Gulf Coast

New research based on an FY99 solicitation will
 focus on the human dimensions of global change.
 The focus will be to identify, understand, & analyze
how human actions contribute, to changes, in natural
 systems.

Conduct preliminary assessment of regional scale
FY1999
Actuals
FY 2000
Estimate
                09/30/2000
FY2001
Request
                            impact
                                           grants
                                                    VI-53

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consequences of climate change at three geographic
locations (Mid-Atlantic, Gulf Coast, and upper
Great Lakes).                                                                       assessment


Complete second-generation ecological and health
data and information system to integrate with the
Global Climate Data and Information System (GCDIS),                              1         system
Baseline:   One of the challenges faced by the global research program is determining how to most
          effectively provide a uniform and easy way for scientists, decision makers and stakeholders
          to identify, share, and use the information, data, and analytic tolls developed by the program.
          Information management and communication is therefore key in engaging stakeholders.
Validation and Verification

       Performance Measure:  Annual Greenhouse Gas Reductions

Performance Database: Baseline Data on Greenhouse Gas Emissions Climate Protection Division
Tracking System.

Data Source:  Baseline data for carbon emissions related to energy use comes from the Energy
Information Agency (EIA).  Baseline data for non-CO2 gases is maintained by EPA. EPA develops
the methane emissions baselines and projections using information from partners and other sources.
We continue to develop annual inventories as well as update methodologies as new information
becomes available.  EPA also maintains similar models to project high GWP gases as well as
inventories for nitrous oxide. Voluntary programs to reduce GHGs collect partner reports on facility
specific improvements (e.g. space upgraded, kWh reduced.) A carbon-conversion factor is used to
convert this information to estimated GHG reductions. Programsmaintaina"trackingsystem" which
is an annual  summary of each performance indicator for each program as well as emissions
reductions based on the reports submitted by partners.

QA/QC Procedures: EPA devotes considerable effort to obtaining the best possible information
upon which to evaluate the voluntary programs. For example, EPA has a quality assurance process
in place to check the validity of partner reports.

Data Quality Review: Peer-reviewed carbon-conversionfactorsare 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
                                          VI-54

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the Climate Change Action Plan. The review included participants from EPA, DOE, DOC, DOT,
and 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.  A 1997 audit by
EPA's Office of the Inspector General concluded that the climate programs that were examined
"used good management practices" and "effectively estimated the impact their activities had on
reducing risks to health and 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. Voluntary nature of
programs may affect reporting. Further research will be necessary in order to fully understand the
links between greenhouse gas concentrations and specific environmental impacts, such as impacts
on health, ecosystems, crops, weather events, etc.

New/Improved Data or Systems: The Administration regularly evaluates the effectiveness of its
climate programs through interagency evaluations.

       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 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.  A 1997 audit by
EPA's Office of the Inspector General concluded that the climate programs that were examined
"used good management practices" and "effectively estimated the impact their activities had on
reducing risks to health and the environment..."

Data Limitations: Voluntary nature of programs may affect reporting
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New/Improved Data or Systems: The Administration regularly reviews the effectiveness of its
climate programs through interagency evaluations.

Performance Measure: Fuel efficiency of EPA-developed PNGV Concept Vehicle over EPA
Driving Cycles Tested.

      Performance Database: Fuel Economy Test data for both urban and highway test cycles
      under the EPA Federal Test Procedure for passenger cars.

Data Source: EPA fuel economy tests performed at the National Vehicle and Fuel Emissions
Laboratory, Ann Arbor, Michigan.

QA/QC Procedures: EPA fuel economy tests performed in accordance with the EPA Federal Test
Procedure and all applicable QA/QC procedures.

Data Quality Review: EPA's National Vehicle and Fuel Emissions Laboratory is recognized as the
world state-of-the-art facility for fuel economy and emissions testing.

Data Limitations:  Primarily because of EPA regulations, vehicle fuel economy testing is a well
established and precise exercise with extremely low test-to-test variability (well less than 5%). The
one relevant issue is that feel economy testing of hybrid vehicles (Le., more than one source of on-
board power) is more complex than testing of conventional vehicles and EPA has not yet published
formal regulations to cover hybrid vehicles.

New/Improved Data or Systems: EPA is using good engineering judgment and consultations with
Other expert organizations (including major auto companies through PNGV) to develop internal
procedures for testing hybrid vehicles. Relations between EPA and DOS cut across several offices
and/or bureaus in both organizations.
Goal 6 Objective 2

Performance Measure:  Assessment reports on the potential consequences of global change on
three regions (the Mid-Atlantic, Upper Great Lakes and Gulf Coast) and on human health.

Performance Database: Output

Data Source: N/A
                                       VJ-56

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QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A
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  other agencies  are also involved in the international
environmental arena.

Statutory Authorities

Clean Air Act, 42 U.S.C. 7401 et seq. - Sections 102,103, 104, and 108

Clean Water Act, 33 U.S.C. 1251 et seq, - Section 104

Solid Waste Disposal Act, 42 U.S.C. 6901 et seq. - Section 8001

Pollution Prevention Act, 42 U.S.C. 13101 et seq. - Sections 6602, 6603,6604, and 6605

National Environmental Policy Act, 42 U.S.C. 4321 et seq. - Section 102

Global Climate Protection Act, 15 U.S.C. 2901 * Section 1103

Federal Technology Transfer Act, 15 U.S.C. - Section 3701a

Research

U.S. Global Change Research Program Act of 1990

United Nations Framework Convention on Climate Change

National Climate Program Act of 1997


                                        VI-57

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                          Environmental Protection Agency
           FY 2001 Annual Performance Plan and Congressional Justification
               Reduction of Global and Cross-border Environmental Risk
Objective # 3:  Stratospheric Ozone Depletion

      By 2005, ozone concentrations in the stratosphere will have stopped declining and slowly
begun the process of recovery.

                                 Resource Summary
                                (Dollars in thousands)

Stratospheric Ozone Depletion
Environmental Program & Management
Total Workyears
Multilateral Fund
Partnership with Industrial and Other Countries
EMPACT
Administrative Services
FY 1999 FY 2000
Enacted Enacted
$17,002.9 $17,832.2
$17,002.9 $17,832.2
36.5 36.9
Key Programs
(Dollars in thousands)
FY1999
Enacted
$11,362.0
$336.7
$671.4
$0.0
FY 2001
Request
$27,998.0
$27,998.0
37.8
FY2000
Enacted
$12,000.0
$361.1
$947.8
$288.5
FY 2001 Req. v.
FY2000Ena.
$10,165.8
$10,165.8
0.9
FY2001
Request
$21,000.0
$427.0
$76.5
$304.9
FY 2001 Request
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      The stratospheric ozone layer protects all life on earth from harmful ultraviolet(UV) radiation.
A depleted ozone layer allows more UV radiation to reach the earth. The increased levels of UV
radiation due to ozone depletion are linked to higher incidences of skin cancer, cataracts, and other
illnesses. EPA aims to reduce risks of skin cancer and cataracts by implementing the provisions of
the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol) and
the Clean Air Act Amendments of 1990 (the Act),
      Scientific evidence amassed over
the  past  25  years has  shown  that
chlorofluorocarbons  (CFCs),   halons,
hydrofluorocarbons  (HCFCs),  methyl
bromide, and other halogenated chemicals
used  around  the  world  are   causing
destruction of the  stratospheric ozone
layer.  CFCs are also  of concern as a
potential contributor to global  climate
change. The Act provides for a phaseout
of production and consumption of CFCs,
HCFCs,   and   other   ozone-depleting
chemicals, and  requires  controls  on
various   ozone-depleting   substance
(ODS)-containing products.
                                        U.S. Significant Goals in
                               Controlling Ozone-Depleting Substances
                         O
                         I
                                                         *••  ^^

                                        fl CFCs H Methyl Bromide  • HCFCs
      The United States and more than
168 other countries are Parties to the Montreal Protocol. The Administrationhas repeatedly affirmed
its commitment to honoring this international treaty and to demonstrating world leadership by
phasing out domestic production of ozone-depleting substances (ODSs) as well as helping other
countries find suitable alternatives. As a signatory to the Montreal Protocol, the United States has
a positive obligation to domestically regulate and enforce its terms.  In accordance with this
international treaty, the EPA implements and enforces rules controlling the production and emission
                                    of ODSs and rales requiring the EPA to identify safer
      qm\M«P
-------
of reducing UV-related health risks, particularly in light of current skin-exposure practices of the
American public. Special emphasis is being placed on education and outreach to children, a
particularly vulnerable population.

EPA's approach to achieving our objective focuses on eight areas:

1.    Domestic  and international production phaseout of five  ODSs  and chemical  classes:
      chlorofluorocarbons  (CFCs),  halons,  methyl chloroform,  carbon  tetrachloride  and
      hydrobromofluoroearbons (HBFCs), as well as controls on their import.

2.    Development of graduated phaseout of HCFC s.

3.    Implementation of graduated phaseout of methyl bromide, while allowing for emergency and
      critical agricultural uses.

4.    Identification, risk  assessment, regulatory determination, and information dissemination
      related to safer alternatives for compounds being phased out.

5,    National implementation of the SunWise School Program, with the goal of reducing the risk
      to  children and their caregivers of health effects caused by overexposure to ultraviolet
      radiation.

6.    More intensive recovery and recycling of ODS and alternatives in the U.S. and abroad.

7.    Environmental data development and public outreach aimed at informing the public of risks
      of overexposure to UV radiation.

8.    Helping to facilitate earlier voluntary phaseout of CFCs and HCFCs in developing countries.

      In addition, the EPA continues to provide support to the Montreal Protocol Multilateral Fund.
Because the ozone layer depends on compliance by all countries, under the Montreal Protocol, the
U.S. and other developed countries support the efforts of developing countries to convert to
alternatives to ODSs.  This is done primarily through  programs supported by the Protocol's
Multilateral Fund. WhenfMly implemented, the activities will annually prevent emissions of more
than 90,000 metric tons of ODSs. This is  about one-third  of developing country use of these
chemicals.

      In FY 2001, the Agency will initiate the next  stage of assisting Russia in its  goal of total
elimination of CFCs by assisting hi the development of a post phaseout monitoring.  Activities
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would be coordinated with the World Bank and donor countries and agencies in facilitating training
and other forms of technical exchanges. In addition, EPA would begin efforts in targeting countries
for specific enforcement capacity enhancement of custom officials to prevent the illegal entry of
banned CFC's into the United States.

      Pollution prevention is also  an important element in meeting the objective  goals.  For
example, our National Emission Reduction Program requires recycling of ODSs, primarily in the
air-conditioning and refrigeration sectors. The Significant New AlternativesPolicy (SNAP) program
will review newly developed alternatives to ozone-depleting chemicals, review the health and
environmental effects of these alternatives, and restrict those alternatives that, on an overall basis,
are more harmful to human health and the environment than other alternatives  for the same
application. The Stratospheric Protection Program, with the help of other Federal agencies, will also
continue to facilitate the transition away from remaining uses of other ODSs, such as methyl
bromide and HCFCs.
Qowfiiof SmWse Sdhod Rogam
         (199&-2000Rlac)
      Additionally, in 2001 EPA will establish an ongoing
base program for the SunWise School Program.  The
overarching goal of the SunWise Program is to move the
U.S. ozone protection program  into the area of risk
reduction that offers the highest potential return:  direct
education of children and care givers about how to protect
themselves from overexposure to UV radiation. Today,
one in five Americans develops skin cancer and over 25%
of cataracts are directly caused by exposure to ultraviolet
radiation. Approximately 80% of lifetime exposure to UV
rays is obtained prior to age 18.
        1998
                         2000
                                          During its  1998-2000 pilot phase, the SunWise
                                    School program grew from just nine schools in three states
                                    to over 140 schools in 36 states.  Initial pilot evaluation
data indicate that the program has resulted in marked improvements in children's knowledge and
selected attitudes about sun protection.  Through implementation of this national UV education
program targeted to grades K-8, EPA expects to  reach 8 million children and 17,000 schools by
2005.
                                         VI-61

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FY 2001 Change from FY 2000 Enacted
EPM
      (+$1,000,000) Through new and dedicated funding, EPA will establish an ongoing base
      program for the SunWise Schools Program. In the past, EPA has primarily relied on funding
      from the BMP ACT Program to support the SunWise Program.

      (+$9,000,000) EPA will increase its investment in the Montreal Protocol Multilateral Fund
      for a total 2001 request of $21,000,000. This investment, combined with funding provided
      by the State Department, will help meet the U.S. obligation in 2001 and help reduce the U.S.
      arrearage on past dues to the Montreal Protocol Multilateral Fund.
      (-$25,000)  Resources shifted to support international climate change activities.
Annual Performance Goals and Performance Measures
Restrict Domestic Consumption of Class II HCFCs


In 2001     Restrict domestic consumption of class II HCFCs below 15,240 Ozone Depleting Pollutants,
           (ODP)-weighted metric tonnes (ODP MTs) and restrict domestic exempted production and
           import of newly produced class I CFCs and halons below 60,000 ODP MTs.


In 2000     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 1999     On-track to achieving APG.  FY 1999 End-of-Year  data will not be available until
           mid-2000.
Performance Measures:
FY 1999
Actuals
              FY2000
              Estimate
FY2001
Request
Domestic Consumption of Class II HCFCs
30-Jun-2000
                 ,240
<15,240    ODP MTs
Domestic Exempted Production and Import of
Newly Produced Class ICFC s and Halons
30-Jun-2000    <60,000
                            <60,000    ODP MTs
Baseline:    The base of comparison for assessing progress on the 2001 annual performance goal is the domestic
           consumption cap of class II HCFCs as set by the Parties to the Montreal Protocol. Each 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
                                              VI-62

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            domestic ODP-weighted consumption of CFCs in 1989 plus the ODP-weighted level of HCFCs in
            1989.  Consumption equals production plus import minus export.


Sun Wise Program


In 2001      For 60% of children in SunWise Schools, the dose of ultraviolet radiation (UVR) to which they are
            exposed will be reduced by 50% thus decreasing the risk of future UV-related health effects,
            including skin cancer, eye damage, and suppression of the immune system.

Performance Measures:                              FY 1999        FY2000       FY2001
                                                  Actuals         Estimate       Request

Daily Minimal Erythema! Dose (MED) of UVR                                       50         MED


SunWise Students Using Sunscreen, Hats,
and Sunglasses                                                                    60         Percent

Baseline:    Children in SunWise Schools complete an annual pre-and post-test survey that evaluates current
            and intended sun protection knowledge and behaviors.  Based upon May 1999  data, 21% of
            SunWise students used sunscreen of an SPF 15+ or higher, 16% wore hats, and 22% wore
            sunglasses. By the end of 2001, the use of sunscreen, hats, and sunglasses among SunWise children
            will increase to 60%. Proper use of a sunscreen of SPF 15 provides 93% protection from harmful
            amounts of UVR; sunglasses provide 85-90%  protection;  and hats  and shade  provide 70%
            protection (Sources: Cyr, Rosenthal, Keeling, and Parsons).


Montreal Protocol Fund

In 2001      Provide assistance to at least 75 developing countries to facilitate emissions reductions and toward
            achieving the requirements of the Montreal Protocol.

In 2000      Provide assistance to at least 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        FY2000       FY2001
                                                  Actuals         Estimate       Request


Assistance to Countries Working under
Montreal Protocol                                  50              50             75         Countries

Baseline:    In an average year the Multilateral Fund, created through the Protocol, approves projects to assist
            over 50 developing countries in their efforts to comply with the phaseout of ODSs.
                                                VI-63

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Verification and Validation of Performance Measures

      PerformanceMeasure: Daily Minimal Erythema! Dose (MBD1 ofUltravioletRadiationdJVR)

Performance Database:
•     Sun Wise School Internet Database
•     EPA UV Monitoring Network (UYNET)
      National Weather Service (NWS) UV Index


Data Source:
•     Hand-held individually  calibrated UV meters that provide UV intensity and minimal
      erythemal dose data
*     Brewer Spectroradiometers
      TOVS or SBUV/2 instrumentation on NOAA satellite.

QA/QC Procedures:
*     Measurement instructions  provided to schools; data controls written into SAS program;
      QA/QC'd quarterly by Sun Wise personnel.
      Data QA/QC'd by EPA's Office of Research and Development (ORD).
•     Data owned and QA/QC'd by the National Weather Service

Data Quality Review:
•     First to be conducted in FY 2000; planned annually.
*     Conducted annually by ORD/University of Georgia/Colorado Central Calibration facility.
«     Conducted annually and published by NWS.

Data Limitations:
*     Data obtained in uncontrolled environment by grade K-8 students.
*     Data available from 22 sites across US only.
•     Data is a forecast

New/Improved Data or Systems: None

      Performance Measure: Percentage of students using sunscreen, hats, and sunglasses

Performance Database: Boston University (BU) School of Medicine, Department of Dermatology

                                       VI-64

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Data Source: Annual pre- and post-test surveys completed by K-8 Sun Wise students.


QA/QC Procedures: Extensive data, statistical, and behavioral analysis conducted consistent with
QA/QC procedures under contract with BU.


Data Quality Review: 1999 data to be published in Spring of 2000. Annual data will be published
following extensive review and evaluation.


Data Limitations:  Data is based upon self-reporting by students.

New/Improved Data or Systems:  None
                                        VI-65

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      Performance Measure: Domestic Consumption of Class II HCFCs

Performance Database: Allowance Tracking System (ATS) database maintained by Stratospheric
Protection Division (SPD)

Data Source:  Progress on restricting domestic consumption of Class II HCFCs is tracked by
monitoring industry reports of compliance with EPA's phaseout regulations.

QA/QC Procedures: Reporting and record-keeping requirements are published at 40 CFR Part 82
Subpart A, § 82.9,82.10,82.11,82.12,82.13. These sections of the Stratospheric Ozone Protection
Rule state the required data and accompanying documentation that companies must submit or
maintain on-site to demonstrate their compliance with the regulation.

Data Quality Review: The ATS data are subject to a Quality Assurance Plan. In addition, the data
are subject to an annual Quality Assurance review along with the appropriate Annual Report and
Work Plan. The annual quality control reviews are coordinated by OAR staff—separate from those
on the team normally responsible for data information—the Alliance for Responsible Atmospheric
Policy. The ATS is programmed to ensure consistency of the data elements reported by companies.
Inconsistent data are flagged by the tracking system for review and resolution by the tracking system
manager. The ATS receives monthly information on domestic production, imports and exports from
the International Trade Commission. This information is then cross-checked with compliance data
submitted by reporting companies. The SPD maintains a User's Manual for the ODS Regulatory
Allowance Tracking System which specifies the standard operating procedures for data entry as well
as data analysis of the Allowance Tracking System by the Tracking System Manager. Regional
inspectors perform inspections and audits on-site at producers, importers and exporters facilities.
These audits verify the accuracy of compliance data submitted to EPA through examination of
company records.

Data Limitations: None

New/Improved Data or Systems: None

      PerformanceMeasure: Domestic Exempted Production and Import ofNewly ProducedCtossI
      CFCs and Halons

Performance Database: Allowance Tracking System (ATS) database maintained by Stratospheric
Protection Division (SPD)
                                       VI-66

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Data Source:  Progress on restricting domestic exempted production and importation of newly
produced class I CFCs, halons, methyl chloroform, carbon tetracMoride and HBFCs are tracked by
monitoring industry reports of compliance with EPA's phaseout regulations.

QA/QC Procedures: Reporting and record-keeping requirements are published at 40 CFR Part 82
Subpart A, § 82,9,82.10,82.11,82.12,82.13. These sections of the Stratospheric Ozone Protection
Rule state the required data and accompanying documentation that companies must submit or
maintain on-site to demonstrate their compliance with the regulation.

Data Quality Review: The ATS data is subject to a Quality Assurance Plan. In addition, the data
is subject to an annual Quality Assurance review along with the appropriate Annual Report and
Work Plan. The annual quality control reviews are coordinated by OAR staff- separate from those
on the team normally responsible for data QA/QC - and are conducted prior to sending the data
forward as required under the Montreal Protocol to the U.N. Environment Program (UNEP).
Quarterly scrubs are also conducted involving cross checks of possible introduced errors and
validation of formulae. We conduct these more frequent reviews both internally and with external
stakeholders through the industry group that represents the producers who send us the information -
the Alliance for Responsible Atmospheric Policy,  The ATS is programmed to ensure consistency
of the data elements reported by companies. Inconsistent data are flagged by the tracking system for
review and resolution by the tracking system manager. The ATS receives monthly information on
domestic production,  imports and exports  from the  International  Trade Commission.  This
information is then cross-checked with compliance data submitted by reporting companies, he SPD
maintains a User's Manual for the ODS Regulatory Allowance Tracking System which specifies the
standard operating procedures for data entry as well as data analysis of the Allowance Tracking
System by the Tracking System Manager, Regionalinspectorsperform inspections and audits on-site
at producers, importers and exporters facilities. These audits verify the accuracy of compliance data
submitted to EPA through examination of company records.

Data Limitations:  None

New/Improved Data or Systems:  None

      Performance Measure:  Assistance to countries working under Montreal Protocol

Performance Database: Database maintained by Stratospheric Protection program

Data Source: The progress of international implementation goals will be measured by tracking the
number of countries receiving assistance, dollars allocated to each, and the expected reduction in
ozone-depleting substances in assisted  countries.
                                        VI-67

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QA/QC Procedures: The data for reporting and record-keeping are maintained by UNEP and the
Stratospheric Protection Program.

Data Quality Review: The Stratospheric Protection Division (SPD) receives periodic reports on
the financial status of participating countries from UNEP. This information is then cross-checked
with SPD records to ensure the accuracy of the performance data.

Data Limitations:  None

New/Improved Data or Systems: None
Coordination with Other Agencies

      In an effort to curb the illegal importation of ozone-depleting substances, an interagency task
force has been formed consisting of EPA, Department of Justice, Customs,  State Department,
Commerce, and Internal Revenue Service. The venting of illegally imported chemicals has the
potential to prevent the U.S. from meeting the goals of the Montreal Protocol to restore the ozone
layer.

      EPA's  environmental mandate and expertise make it uniquely qualified to represent the
nation's environmental interest abroad. While the Department of State (DOS) is responsible for the
conduct of overall U.S. foreign policy other agencies are also  involved in the  international
environmental arena. Relations between EPA and DOS cut across several offices and/or bureaus hi
both organizations.

      EPA is working with Department of Agriculture to facilitate research and development of
alternatives to methyl bromide, and to identify and monitor emergency and critical agricultural uses
of methyl bromide,

      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 UVR.

      EPA coordinates closely with Food and Drug Administration (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 provides the
critical balance between protecting the public health and limiting damage to the stratospheric ozone
layer.

                                         VI-68

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      The Agency coordinates with NASA and NOAA to monitor the state of the ozone layer,



Statutory Authorities

Clean Air Act (CAA) Title VI, Parts A and D (42 U.S.C. 7401 -7431, 7501-7515)

Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)

Resource Conservation and Recovery Act (RCRA) sections 3001-3006 and 3017 (42 U.S.C. 6921-
6926,6938)

The Montreal Protocol on Substances that Deplete the Ozone Layer
                                       VI-69

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                             Environmental Protection Agency
            FY 2001 Annual Performance Plan and CongressionalJustifkation
                Reduction of Global and Cross-border Environmental Risk
Objective # 4: Protect Public Health and Ecosystems From Persistent Toxics

      By 2005, consistent with international obligations, the need for upward  harmonization of
regulatory systems, and expansion of toxics release reporting, reduce the risks to U.S. human health
and ecosystems from  selected toxics (including pesticides) that circulate in  the  environment at
global and regional scales. Results will include a 50% reduction of mercury from 1990 levels hi the
U.S.  Worldwide use of lead in gasoline will be below 1993 levels.
                                    Resource Summary
                                   (Dollars in thousands)
                                         FY1999
                                         Enacted
          FY2000
          Enacted
          FY2001
          Request
       FY 2001 Req. v.
        FY20QOEna.
Protect Public Health and Ecosystems From
Persistent Toxics

      Environmental Program & Management

              Total Workyears
$4,278.6


$4,278.6

   28,9
$4,857.4


$4,857.4

   31.9
$5,482.8


$5,482.8

   33.2
$625.4


$625.4

   1.3
                                      Key Programs
                                   (Dollars in thousands)
                                                   FY1999
                                                   Enacted
                      FY2000
                      Enacted
                       FY2001
                       Request
Global Toxics

Partnership with Industrial and Other Countries

Administrative Services
            $315.3

            $100.0

              $0.0
              $535.0

              $356.4

               $15.4
              $588.4

              $246.2

               $16.5
                                           VI-70

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FY 2001 Request

      Many human health and environmental risks to the American public originate outside our
borders.  Many pollutants travel easily across borders - via rivers, air and ocean currents,  and
migrating wildlife.  Even in remote Antarctica, 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. Harmonization of national standards
assists in-reducing global pollution by increasing the number of health and ecological effects any
single country may be examining; it also lowers barriers to trade and commerce as countries accept
the validity of another's screening or other standards. To help reduce pollution in the U.S., EPA is
committed to reducing pollution globally.

      EPA's activities under this objective give priority to selected chemicals which can persist,
bioaccumulate and are highly toxic (PBTs). These chemicals do not break down naturally in the
environment. For this reason, PBTs, or POPs as they are known internationally (persistent organic
pollutants) are very mobile, moving great distances along wind and ocean currents,  thereby posing
serious risks to human health and the ecosystem in.the U.S. and world-wide. PBTs also enter the
food chain, accumulating by degrees in the shellfish, fish, birds and animals that are exposed directly
or indirectly through their diets.

      EPA is working to reduce the risk from PBTs on several fronts: (1) reducing the release and
transboundary  movement of PBTs;  (2) reducing the  levels of exposure to, and adverse effects
resulting 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.
Among PBTs, certain substances pose the greatest hazard because of their highly toxic effects on
human health.  These include PCBs, dioxins/furans, DDT, mercury, and lead. In each negotiated
agreement or offer of technical assistance, these substances take priority.  In addition, certain
populations are especially vulnerable, and receive priority consideration.  Children exposed to lead
in gasoline, 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 2001, EPA will
continue to play a key role in the Administration's efforts to successfully conclude a number of
regional and global negotiations to establish voluntary and legally binding obligations to control and
more safely produce, use, store and dispose of selected PBTs. In addition, the Agency will expand
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.
                                         VI-71

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Binding International Agreements on Certain Persistent Toxics and Prior Informed Consent
                                                   Under POPs, Twelve Chemicals are
                                                   Proposed to be Eliminated and/or
                                                              Controlled

                                                 Eight are canceled pesticides:
                                                  LDDT             5, Chlordain
                                                 2. AJdrin           6. Heptaehlor
                                                 3. Dieldrin          7. Mirax
                                                 4. Endrin           8. Toxaphene

                                                 Two are Industrial Chemicals:
                                                 9. PCBs
                                                 10, Hexachlorobenzene

                                                 Two are Industrial Byproducts:
                                                  ll.Furans
      Persistent  organic  pollutants  (POPs)   are
chemicals of concern that are persistent, toxic  and
bioaccumulative. When POPs are transported across
international boundaries, some may pose a threat to
global health and the environment. EPA has been
involved in  negotiating a series of legally-binding
international agreements  concerning various PBT
substances   and  international  trade  in  severely
restricted chemicals. The U.S. and some forty other
nations  in late 1998 concluded and   signed  two
legally-binding regional protocols on POPs and on
selected heavy metals (e.g., mercury) under the United
Nations  Economic  Commission  for  Europe's
Convention  on  Long-Range Transboundary  Air
Pollution (LRTAP).  The LRTAP POPs protocol in
turn helped to establish the foundation for the ongoing
negotiation (under the auspices of the United Nations
Environment Program, or UNEP) of a legally-binding
global convention on POPs.  EPA expects that the
UNEP POPs convention will be concluded and signed by 2001.

      The LRTAP POPs protocol banned or restricted manufacture and/or use of 16 industrial
chemicals, pesticides and unintentional combustion byproducts. Twelve of these substances are the
starting set of substances to be controlled under the UNEP POPs convention.  The LRTAP and
UNEP POPs agreements also address export and import restrictions/controls, emission release
restrictions, micro-contaminantissues, waste management, and the selection of additional substances
for control. In contrast t© the LRTAP POPs protocol, the UNEP POPs convention will be dependent
in large part on the eventual development of emission inventories and improved exposure and health
effect studies in developing countries around the world, as well as the agreement on a set of capacity
building measures through which the U.S. and other developed countries will assist developing
countries in reducing and/or eliminating their production and use of the listed POPs.

      Even before the LRTAP and UNEP agreements become legally binding, the EPA and its U.S.
government partners are working to encourage and facilitate the compliance by developing countries
with their obligations under these agreements.   Unless international controls are put in place,
environmental loadings of PBTs and the resultant health and environmental risks will increase over
time through expanded production, trade, and use of these substances. Many countries often are
unable to commit to controls of this type in the absence of technical assistance. The Agency places
considerable emphasis on capacity building projects in key developing countries seeking greater
                                        VI-72

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compliance with international obligations and thus to engage other countries in reducing global risks
posed by PBT substances.

      To facilitate voluntary information exchange and import controls of banned or severely
restricted chemicals among countries, EPA also engaged in negotiating a legally binding convention
on Prior Informed Consent (PIC) which outlines requirements for the export and import of selected
chemicals.  As with the POPs agreements, EPA is working to 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

      EPA has for several years been actively promoting the phase-out of use of lead additives in
gasoline at the international level. As of 1999, the Agency has already seen the global use of lead
in gasoline drop below the target level selected for our 2005 strategic goal, and it is likely that EPA
will make additional progress  in encouraging more countries to eliminate their use  of lead in
gasoline. This will result in additional reductions in adverse health impacts associated with lead
exposure.

      A new program started in 2000 will continue to target countries in Sub-Saharan Africa (SSA)
and specific sectors (i.e., refineries, mining companies, and stockpilers of agricultural chemicals)
which are major contributors to globally circulating chemical/toxic risks, focusing on pesticides,
mercury and lead. This program addresses the growing health and ecosystem risk from rapid urban
and industrial development in SSA, and supports U.S.. foreign policy and Presidential commitments
of engagement with SSA through a community empowerment approach. In 2001, targeted countries
and cities are being given information which will assist in implementing environmental regulatory
systems on 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.

Harmonization of Test Guidelines

      Test guidelines are collections of methods for testing chemicals and chemical preparations,
such as pesticides and industrial chemicals to assess hazard, toxieity, or other chemical properties.
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.
                                         VI-73

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      Harmonizing test guidelines acrosscountriesoffers significant benefits to industry, the public,
and the environment, including:

      «       reducing the burden on chemical companies and other industries, which otherwise
             must perform separate, sometimes only slightly different, repeated testing in order
             to satisfy the regulatory requirements of different jurisdictions both withinthe United
             States and internationally;

      «       reducing the need for animal testing;

      «       expanding the universe of toxic chemicals for which needed testing information is
             available; and

      •       fostering efficiency in international information exchange and mutual international
             acceptance of chemical test data.

      To date, EPA has published 97 guidelines, 36 of which have been harmonized with OECD
requirements. In 2001, the Agency expects to be involved in the process for 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 emissions
inventories.  The Toxic Release Inventory (TRI) is the United States'  version of a PRTR.
International attention fecused 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
8 nations with PRTRs and many more that are in the process of developing them.  Still more
countries have expressed an interest in developing such inventories. Fostering the public's right-to-
know in other countries can help reduce pollution generated in these countries, just as it has in the
United States.

      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 United
Nations Institute for Training and Research (UNITAR), and the PRTR Coordination Workgroup on
ways to facih'tate the public's right-to-know and the importance of collecting data on air, water, land
                                         VI-74

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and off-site transfers. As the OECD takes steps to integrate PRTR data with risk assessment and risk
management activities, EPA will participate to ensure that the resulting decisions meet Agency
objectives. To foster the public's right-to-know around the world, EPA will provide financial or
technical assistance to help nations develop PRTRs, providing financial or technical assistance.

      By 2005, EPA expects that all OECD countries will not only have developed PRTRs, but that
these inventories will  be fully operational.  Besides being used for community right-to-know
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 (CFC
production) and Basel (waste transfer agreements).

 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. 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 50
SIDS chemicals in 2001.

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
bioaceumulative  foxic  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.
         Technical Assistance to
          Developing Countries

EPA has been active in global efforts to
manage obsolete pesticides that are often
stockpiled in developing countries. EPA has
been a leader in the United Nations Food and
Agriculture (FAO) workgroup that is
developing global strategies to address the
risks posed by obsolete pesticides.  EPA has
also developed an international train-the-
trainer course "Pesticide Disposal in
Developing Countries," based on the growing
international problem and demand for
technical assistance.
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FY 2001 Change from FY 2000 Enacted
EPM
      (+$91,900)  Increase for workforce cost of living,


      (+$500,000, +0.6 FTE) Additional resources to handle expanded international negotiations
      on environmental and trade issues, including negotiations to ban or restrict the manufacture
      of 16 PBT industrial chemicals.


       (-$90,700)  Contract and grant resources targeted for Sub-Saharan Africa were reduced and
       focus reduced on addressing specific industrial sectors that contribute to global circulation
       of chemicals -of- concern.
Annual Performance Goals and Performance Measures
Evaluate Domestic Suitability of Internal Consensus Testing


In 2001     Evaluate the domestic suitability of international consensus testing decisions made in the
           OECD International Screening Information Data Set (SIDS) program and obtain needed
           testing as required.

In 2000     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 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:
FY1999
Actuals
FY2000
Estimate
FY2001
Request
Complete the review of testing needs for
chemicals processed through the OECD-
sponsored SIDS program


Complete OECD harmonization
36


0
SO


10
50
Test Reviews
           Test Guidelines
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Baseline:    Guideline harmonization baseline is 82 test guidelines  (health, ecosystem, exposure, physical and
            chemicals properties) and 32 in draft. Complete testing and data on 25 chemicals processed through
            the OECD sponsored SIDS program in 1998.
POPs Negotiation


In 2001      Successfully conclude international negotiations on a global convention on Persistent Organic
            Pollutants (POPs), and initiate priority capacity building projects in key developing countries.

In 2000      Successfully conclude international negotiations on a global convention on Persistent Organic
            Pollutants (POPs) reaching agreement on POPs selection criteria, technical  assistance, and risk
            management commitments on specified POPs.


In 1999      A negotiated agreement has been reached for USG polices and international agreement was reached
            in June 1999 on criteria for selecting Persistent Organic Pollutants to be covered in a new global POPs
            treaty, and No agreement has been reached yet on capacity building
Performance Measures:
FY 1999
Actuals
FY 2000
Estimate
FY 2001
Request
Agreed USG policies on selection criteria
for Persistent Organic Pollutants

Production of a final agreed convention text

Agreement on selection criteria and methodology

Conclusion and U.S. signature of POPs convention
yes

09/30/2000
09/30/2000

negotiations
report
report
1 Agreement
Baseline:    This Is a new global POPs treaty, therefore a baseline has not been established.
Lead Gasoline Phase-Out
In 2001     An additional two countries make national commitments to phase out the use of lead in gasoline.
Performance Measures:
FY 1999
Actuals
FY2000
Estimate
FY2001
Request
Number of commitments to Pb phaseout
                                           countries
Global reduction in Pb gasoline.
                                10
                            percent
                                                    VI-77

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Baseline:   Fourteen countries have phaseout the use of Pb gasoline. Twelve countries and the European Union
          have started work on Pb phaseout
Verification and Validation of Performance Measures

Performance Measure: Conclusion and U.S. signature of POPs convention

Performance Database: Manual data collection

Data Source: US POPs working group

QA/QC Procedures: The target is US signature on international agreement

Data Quality Review: Not applicable

Data Limitations: Not applicable

New/Improved Data or Systems: Not applicable

Coordination with Other Agencies

       To conclude the international agreements on POPs, heavy metals and PIC substances, EPA
must continue to coordinate with other Federal agencies and external stakeholders, such as
Congressional staff, industry, and environmental groups, to convey the U.S. approach and solicit
constructive criticism. EPA needs to ensure that the list of chemicals and the criteria and process
for evaluating future chemicals for possible international controls are based on sound science. To
illustrate, the Agency may typically coordinate with the Food and 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
(N1EHS) and/or the Consumer Product Safety Commission (CPSC) on matters relating to OECD
test guideline harmonization.

       EPA's  objective is to promote  unproved health and environmental protection, both
domestically and world-wide.  The success of this objective is dependent on successful coordination
not only with other countries, but with  various international  organizations  such as the
Intergovernmental Forum on Chemical  Safety (ICFS), the North American Commission on
Environmental Cooperation  (NACEC), the Organization for Economic  Cooperation and


                                        VI-78

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Development's (OECD), and the CODEX Alimentarius Commission. The North American Free
Trade Agreement and  cooperation  with  Canada  and Mexico play an integral part in the
harmonization of data requirements.

      The Agency's goal to develop common or compatible international approaches to pesticide
review, registration and standard-setting extends to our international partnerships. The partnerships
may be grouped into 3 broad categories: (1) policy, (2) programmatic, and (3) capacity building.
The Agency, for example, worked closely with other member countries of the OECD to establish
a pesticide forum to bring government pesticide regulators together to address common problems
and achieve greater harmonization of policies and procedures. The OECD Pesticide Forum works
on five major areas:  re-registration, data requirements, risk reduction, test guidelines and hazard
assessment.  The OECD plans to include establishing internationally harmonized labeling for
pesticides.

      EPA continues to participate actively in the prior informed consent (PIC)  agreement,, a
United Nations Environment Programme (UNEP) and U.N. Food and Agriculture  Organization
(FAO) to promote 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 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.

      EPA initiated work in 1999on its Persistent Bioaccumulative Toxics Initiative(PBTI), which
aims to support a variety of domestic and international efforts (noted above). The goal of these
efforts is to reduce the risks posed by persistent toxic substances. Through the PBTI, EPA has
worked closely with its domestic partners, including state and local governments, as well as industry,
environmental and tribal organizations, plus international counterparts, to promote the objectives of
the Initiative. This work has closely paralleled many efforts already underway to conclude and
promote the implementation of international agreements on POPs and PIC.

      At the EPA regional  level, EPA also worked with the NACEC to deal with chemical
pollutants of concern to Canada, Mexico, and the United States. The commission approved regional
action plans to reduce the use of DDT and chlordane throughout North America.
Statutory Authorities

Pollution Prevention Act (PPA) (42 U.S.C. 13101-13109)
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Federal   Insecticide,   Fungicide,   and  Rodenticide  Act  (FIFRA)   sections
3,4,5,6,10,11,18,20,23,24,25,30 and31 (7U.S.C. 136a, 126a-l, 126c, 136d, 136h, 136i, 136p, 136r,
136u, 136v, 136w, 136w-5 and 136w-6)

Emergency Planning and Community Right-to-Know Act (EPCRA) section 313 (42 U.S.C. 11023)

Toxic Substances Control Act (TSCA) sections 4, 5, 6, 12, and 13 (15 U.S.C. 2603, 2604, 2605,
2611,2612)

Clean Water Act (CWA) (33 U.S.C. 1251-1387)]

Clean Air Act (CAA)

Federal Food, Drug and Cosmetic Act (FFDCA).

Resource Conservation and Recovery Act (RCRA)

North American Agreement on Environmental Cooperation (NAAEC)

1996 Habitat Agenda, paragraph 43bb

U.S./Canada Agreements on Arctic Cooperation

1989 US/USSR Agreement on Pollution

1991 U.S./Canada Air Quality Agreement

1978 U.S./Canada Great Lakes Water Quality Agreement

1909 Boundary Waters Agreement

World Trade Organization Agreements   s

North American Free Trade Agreement
                                      VI-80

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                            Environmental Protection Agency
            FY 2001 Annual Performance Plan and Congressional Justification
                Reduction of Global and Cross-border Environmental Risk
Objective # 5: Achieve Cleaner and More Cost-Effective Practices

       By 2005, increase the application of cleaner and more cost-effective environmental practices
and technologies in the U. S. and abroad  through international cooperation.
                                   Resource Summary
                                   (Dollars in thousands)
                                         FYI999
                                         Enacted
          FY 2000       FY 2001    py 2Q01 Req. v.
          Enacted       Request     FY2000Ena.
Achieve Cleaner and More Cost-Effective
Practices

   Environmental Program & Management

       Total Workyears
$9,370.0
$12,436.5
$9,370.0      $12,436.5

   53.5          56.9
$13,753.4


$13,753.4

    51.1
$1,316.9


$1,316.9

   (5.8)
                                      Key Programs
                                   (Dollars in thousands)

Environment and Trade
Partnership with Industrial and Other Countries
Commission for Environmental Cooperation - CEC
International Safe Drinking Water
FY 1999
Enacted
$389.0
$4,638.0
$3,084.0
$684.0
FY2000
Enacted
$518.0
$5,063.0
$3,222.5
$793.0
FY2001
Request
$4,606.4
$3,599.4
$3,263.5
$848.0
                                          VI-81

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                                                  FY1999         FY 2000        FY 2001
                                                  Enacted         Enacted        Request
 International Brownfields                                      $159.0          $168.0        $173.0

 Administrative Services                                        $0.0           $48.0        $55.7
FY 2001 Request

       EPA's activities  under this objective will continue to: (1) protect human health and the
environment on global, regional, and national levels through enhanced management capabilities in
other countries; (2) reduce the costs of environmental protection in the U.S. through international
sharing of information and costs in environmental policy and  research programs; (3)  promote
environmentally sound  trade  worldwide through  the strengthening of global environmental
participation and participation in multilateral environmental agreements, including trade regimes; (4)
promote the dissemination of proven and cost-effective environmental technologies and services; and
(5) advanceU.S. foreign policy, economic, national security, humanitarian, and other interestsabroad.
International Environmental Monitoring Program

       A new focus under this objective for 2001 is the International Environmental Monitoring
Program, a new component of the Agency's Environment and Trade program. This initiative seeks
to address environmental  concerns about global economic integration and to promote higher
environmental standards worldwide by developing better information and a more focused means of
mobilizing technical assistance regarding the implementation of environmental laws and regulations
in developing countries.  Specific objectives of the program are to monitor and report on other
countries' implementation of environmental laws and regulations, identify technical assistance needs
and coordinate  its provision,  and counsel  US firms  regarding local  environmental laws  and
conditions.

       Information about implementing environmental laws and regulations in developing countries
will be assembled by US officials in overseas posts and U.S.-based analysts.  The program will be
implemented by EPA in conjunction with the Department of State, the Agency for International
Development, and the  Department of the Treasury, and coordinated with multilateral capacity
building programs of the UN Environment Program, the World Bank and others.  Target countries
for monitoring and reporting will be selected through an interagency process. The program will begin
with pilot reviews of selected countries in different regions of the world, in order to develop and
refine the monitoring and reporting methodology, and then will be extended to other target countries
in the out-years.

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       The primary benefit of the monitoring program to the US and developing countries is to
demonstrate that global economic integration and environmental protection can go together. The
monitoring program will help identify targets for technical assistance to developing countries in
applying cleaner and more cost-effective environmental practices and technologies, especially in the
context of international trade and investment.
International Drinking Water

       The international drinking water resources will continue to focus on applying cleaner and
more cost-effective environmental practices and technologies to improving watershed protection and
drinking water quality in partner countries. Ongoing projects in Central America and Africa will be
used as models to continue promoting water quality improvement throughout these regions with
potential expansion into Asia. EPA will use its unique and technically strong water and wastewater
expertise among US government agencies to improve drinking water quality in partner countries,
particularly in urban and peri-urban areas. 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 these areas. Relatively few donor-supported
water projects in Africa focus on this crucial urban component.

       Specific projects will include strengthening national drinking water programs, improving
urban water utility management and financing, protection of drinking water sources and enhancing
water quality surveillance and treatment. Raising awareness of the cost-effectiveness of protecting
safe water resources versus treatment of contaminated sources will be an important component of
EPA's InternationalSafe Drinking Water Program, Lessons learned from projects in Central America
and Africa will help develop projects hi other countries and refine current projects. EPA will also
continue working with Latin American partners, such as the Pan American Health Organization's
technical center (CEPIS) in Peru, to further strengthen their abilities to improve water quality in the
region. Identifying health impacts and societal costs, including infant mortality and lost work force
productivity resulting from unsafe drinking water will help focus attention on the outcome of the
environmental improvements being implemented. These improvements directly support the goal of
"applying cleaner and more cost-effective environmental practices".

Cliina Program

       EPA will further engage China on key environmental issues, including trade and environment
issues  arising out of China's likely accession to the WTO. The Agency will build on the work
initiated to target emissions reductions in key industrial sectors, with an emphasis on emissions of
concern to the global environment and on technologies for which the U.S. has a strong competitive
                                         VI-83

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export advantage, EPA will also increase efforts to get environmental information to the Chinese
public through media reporting and non-governmental organizations.

AfricaProgram

       Building on work begun to  provide Internet connectivity and  information access for
chemicals/pesticide managers in two pilot countries in Africa, EPA will expand regional networking
and training to further the long-term goal of a continent-wide chemicals management network. This
work is undertaken in partnership with USAID (Africa Bureau and Leland Initiative), FAO and
UNEP,  In addition, the Agency will build on health effects research and other awareness building
activities for lead risk reduction undertaken by convening key stakeholders to discuss policy and
technical issues surrounding the removal of lead from gasoline refined and marketed in Africa. This
will result in a regional plan for phasing out leaded gasoline.

       EPA will take an mtegratedapproaeh towards growing industrial pollution problems in Africa.
The Agency will work with the US private sector and non-governmental organizations to improve
environmental management approaches in sectoral and geographic targets  identified in 2000.  The
objective is to increase institutional capacity to effect pollution prevention, energy efficiency, and
toxic emissions reductions in targeted industrial sectors in Africa.

       A new effort will be initiated in Sub-Saharan Africa, outside of South Africa, in developing
cleaner and more cost-effective environmental management capacity. Corporate responsibility and
P2E2 (Pollution Prevention and Energy Efficiency) are likely to  be the most promising targets of
opportunity, allowing us to leverage significant private sector support and addressing critical global
and local problems which are currently almost entirely ignored by donors and governments. Another
target will be clean water and sanitation technical and policy assistance in  urban areas. In order to
measure results in out years, 2001 resources will be devoted to identifying geographic and sectoral
targets of opportunity and gathering baseline information.

       This effort will apply EPA technical cooperation tools and information exchange abilities to
achieve measurable improvements in environmental protection in target areas. These projects will
be replicable and will build in-country capacity such thatin out years greater results will be obtained.
                                          VI-84

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FY 2001 Change from FY 2000 Enacted

EPM

•      (+$4,250,000) Increase in contract and grant resources to support a new Environment and
       Trade program, the International Environmental Monitoring Program. The program will be
       implemented  by EPA in conjunction  with the Department of  State,  the Agency for
       International Development,  and the Department of the Treasury, and coordinated with
       multilateral capacity building programs of the UN Environment Program, the World Bank.
       The primary benefit of the Monitoring program to the US and developing countries alike is
       to demonstrate that global economic integration and environmental protection can go hand
       in hand. The Monitoring program will provide strong support to Goal 6, Objective 5 by
       identifying targets for technical assistance to developing countries in applying cleaner and
       more cost-effective environmental practices and technologies, especially in the context of
       international trade and investment.

•      (-$3,020,400)   Reductions taken to partnership activities with developing and priority
       countries,  including international safe-drinking water program  and capacity building
       activities.
Annual Performance Goals and Performance Measures


International Monitoring

In 2001     Complete pilot reports on the implementation of environmental laws and regulations in 4
           developing countries.

Performance Measures:                           FY 1999       FY2000       FY2001
                                              Actuals        Estimate       Request

Number of developing countries for which
pilot environmental reports have been completed.                                   4         reports

Baseline:    New program. The International Environmental Monitoring Program seeks to address environmental
           concerns about global economic integration and to promote higher environmental standards worldwide
           by developing better information and a more focused means of mobilizing technical assistance
           regarding the implementation of environmental laws and regulations in developing countries. Specific
           objectives of  the program are to monitor and report on other countries' implementation of
           environmental laws and regulations, identify technical assistance needs and coordinate its provision,
           and counsel US firms regarding local environmental laws and conditions.
                                               VI-85

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Enhance Institutional Capabilities

In 2001     Enhance environmental management and institutional capabilities in priority countries.

In 2000     Deliver 30 international training modules; implement 6 tech assistance/ technology dissemination
            projects; implement 5 cooperative policy development projects; & disseminate info products on US
            environmental technologies and techniques to 2500 foreign customers.

In 1999     3 of the 4 program areas for enhancing global environmental management were met.
Performance Measures:
Number of training modules delivered
FY 1999
Actuals

16
FY2000
Estimate

30
FY 2001
Request
            modules
Number of tech assistance or tech
dissemination projects carried-out

Number of cooperative policy
development projects implemented

Number of info products disseminated
 to foreign customers

Number of capacity building activities
scheduled for initiation hi 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
2500
2500
                                           projects
                                           projects
            products
                                           report
                                           countries
                                           organizations
                                           organizations
                                           organizations
                                                    VI-86

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Number of targeted sectors (3) that have
 adopted cleaner production practices                                                    3           industry sector


Number of cities (3) that have reduced
mobile-source based ambient air pollution
concentrations                                                                         .3           cities


Baseline:    international capacity-building programs play a critical role in achieving the Agency's mission. Lack
            of the necessary managerial, technical, financial, scientific, and/or institutional capabilities has often
            served as the major stumbling block to developing country action on behalf of the environment,
            including progress in addressing global and transboundary environmental problems that directly affect
            health and the environment in the United States.
                                                       VI-87

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Safe Drinking Water Pilots

In 2001     Increase access to microbiologically safe drinking water in 3 pilot communities in Central America
           and/or Africa

In 2000     Initiate health surveillance to evaluate trends in water-borne diseases in 2 pilot project communities.
Performance Measures:
Number of pilot projects monitoring the
 microbiological quality of DW

number of pilot laboratories (3) with enhanced
 monitoring and surveillance capabilities

The number of pilot communities (2)
 implementing source water protection programs

The number of pilot treatment plants (1) with
completed Comprehensive Performance
 Evaluation assessment

Implementation of strategy to determine baseline
health conditions on drinking water-related
diseases in El Salvador
FY 1999
Actuals
FY 2000
Estimate
FY2001
Request
                                         projects
                                          laboratories
                                          communities
                                          treatment plant
                                          Strategy plan
Baseline:   Two of the biggest human health risk factors in the developing world are the lack of microbiologically
           safe drinking water and proper sanitation systems. Over one billion people lack access to safe drinking
           water, and nearly three billion lack adequate sanitation.
Verification and Validation of Performance Measures

Performance Measure: Number of developing countries (4) for which pilot environmental reports
have been completed.

Performance Database: None-Manual  Collection

Data Source: Project Specific
                                               VI-J

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QA/QC Procedures: Verification does not involve any pollutant database analysis, but will require
obj ective assessment of tasks completed, compliance with regulatory development and, and mutually
assessment of projects goals and objectives.

Data Quality Review: Not Applicable

Data Limitations: None Known

New/Improved Data or Systems: Not Applicable

Performance Measure: Number of countries or localities (3) that have adopted new or strengthened
environmental laws and policies

Performance Database: None-Manual Collection

Data Source: Project Specific

QA/QC Procedures: Verification does not involve any pollutant database analysis, but will require
objective assessment of tasks completed, compliance with regulatory development and, and mutually
assessment of projects goals and objectives.

Data Quality Review: Not Applicable

Data Limitations: None Known

New/Improved Data or Systems: Not Applicable

Performance Measure: Number of organizations (3) that have increased environmental planning,
analysis, and enforcement capabilities

Performance Database: None-Manual Collection

Data Source: Project Specific

QA/QC Procedures:  Verification of does not involve any pollutant database analysis, but will
require objective assessment of tasks completed, compliance with regulatory development and, and
mutually assessment of projects goals and objectives.

                                        VI-89

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Data Quality Review:  Not Applicable

Data Limitations: None Known

New/Improved Data or Systems: Not Applicable

Performance Measure: Number of organizations (3) that have increased capabilities to generate
and analyze environmental data and other information

Performance Database: None- Manual Collection

Data Source: Project Specific

QA/QC Procedures: Verification of does not involve any pollutant database analysis, but will
require objective assessment of tasks completed, compliance with regulatory development and, and
mutually assessment of projects goals and objectives.

Data Quality Review:  Not Applicable

Data Limitations: None Known

New/Improved Data or Systems: Not Applicable

Performance Measure: Number of organizations (3) that have increased public outreach and
participation

Performance Database: None- Manual Collection

Data Source: Project Specific

QA/QC Procedures: Verification of does not involve any pollutant database analysis, but will
require objective assessment of tasks completed, compliance with regulatory development and, and
mutually assessment of projects goals and objectives.

Data Quality Review:  Not Applicable

Data Limitations: None Known

                                       VI-90

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New/Improved Data or Systems: Not Applicable

Performance Measure:  Number of targeted sectors (3) that have adopted cleaner production
practices

Performance Database:  None- Manual Collection

Data Source: Project Specific

QA/QC Procedures:  Verification of does not involve any pollutant database analysis, but will
require objective assessment of tasks completed, compliance with regulatory development and, and
mutually assessment of projects goals and objectives.

Data Quality Review: Not Applicable

Data Limitations: None Known

New/Improved Data or Systems: Not Applicable

Performance Measure: Number of cities (3) that have reduced mobile-source based ambient air
pollution concentrations

Performance Database:  None- Manual Collection

Data Source: Project Specific

QA/QC Procedures:  Verification of does not involve any pollutant database analysis, but will
require objective assessment of tasks completed, compliance with regulatory development and, and
mutually assessment of projects goals and objectives.

Data Quality Review: Not Applicable

Data Limitations: None Known

New/Improved Data or Systems: Not Applicable
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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  other agencies  are also involved in the international
environmental arena. 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 Affairs (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 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 inter-agency 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, regulation and other  programs are consistent  with U.S. obligations under
international trade agreements.

      Finally, EPA works closely with a number of other Federal agencies with environmental,
health, or safety mandates. These include the Department of Labor, Department of Transportation,
Department of Agriculture, Department of Interior, Department of Health and Human Services, and
the Food and Drug Administration.
Statutory Authorities

EPCRA section 313 (42 U.S.C. 11023)

PPA.(42U.S.C. 13101-13109)


                                        VT-92

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Goal 7: Right to Know

-------
Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 7: Expansion of Americans' Right to Know About Their Environment 	VII-1
        Increase Quality/Quantity of Education, Outreach, Data Availability	VII-8
        Improve Public's Ability to Reduce Exposure  	VII-25
        Enhance Ability to Protect Public Health  	VH-36

-------
                           Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

            Expansion of Americans* Right to Know about their Environment
Strategic Goal: Easy access to a wealth of information about the state of their local environment
will expand citizen involvement and give people tools to protect their families and their communities
as they see  fit.  Increased information exchange between scientists, public health officials,
businesses, citizens,  and all  levels of government will foster greater knowledge about  the
environment and what can be done to protect it.

                                  Resource Summary
                                 (Dollars in thousands)

Goal 07
Obj. 01

Expansion of Americans' Right-to-
Know About their Environment
Increase Quality/Quantity of
Education, Outreach, Data Availability
FY1999
Enacted
$139,083.2
$71,008.1
FY2000
Enacted
$159,640.1
$98,700.3
FY 2001 FY 2001 Eeq. v,
Reauest FY 2000 Ena.
5185,109.1
SI 20.75 1.8
$25,469.0
$22,051.5
   Obj. 02 Improve Public's Ability to Reduce
          Exposure
   Obj. 03 Enhance Ability to Protect Public
          Health
                 Total Workyears
$42,114.6
$25,960.5
778.8
$37,839.7
$23,100.1
818.4
$39.605 .9
$24.7514
809.5
$1,766.2
$1,651.3
(8.9)
Background and Context

       Providing the American public 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 and everyday products they purchase.  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.

       Access to environmental information enables the American public  to make informed
decisions about their local environment.  It also leads to creative and sustainable solutions to
                                         vn-i

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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 empower the American public with information, enabling them
to make informed decisions regarding environmental issues in their communities.  EPA  will
accomplish this goal through three strategic objectives: expand environmental education, outreach
and data availability; improve the public's ability to reduce exposure; and enhance the public's
ability to protect health and the environment. These objectives will be met by expanding the range
of data it collects and improving the quality and usability of the data. The Agency will also ensure
the data are widely available through the Internet, mass media and other sources.

       Right to Know has become apart of EPA's mission. The Agency has accelerated its efforts
to improve the accuracy of its data, and to reduce the burdens to industry associated with reporting.
Also, the Agency is working to enhance the coordination of data collection activities with states and
to improve our data collection methods md use the latest technologies to consolidate information
on a single Internet site.

       The Agency has redesigned its internal structure to better meet information demands. EPA's
new approach to information management employs a single program manager and office responsible
for information management, policy and information technology stewardship across the Agency.
This Office is responsible for developing and implementing information standards and accountability
systems that will improve environmental  information within the Agency and the information
provided to the public.  This Office is focusing its work on reducing information collection and
reporting burden; filling significant data gaps; and providing integrated environmental and public
health information and statistics to the public.
       Research

       The research program supports this goal through the Integrated Risk Information System
(IRIS) and the Risk Assessment Forum (RAF), IRIS is an EPA database of Agency consensus health
information on environmental contaminants. The database is used extensively by EPA, the states,
and the general public where consistent, reliable toxicity information is needed for credible risk
assessments. In 2001, the Agency has a goal of completing 21 chemical assessments and making
them available in IRIS. The Risk Assessment Forum promotes Agency-wide consensus on difficult
and controversial  risk assessment issues and ensures that this consensus is incorporated into
appropriate Agency risk assessment guidance. In 2001, the RAF will be developing technical papers
to provide initial guidance on difficult cumulative risk assessment issues and a framework for
cumulative risk assessment to serve as a foundation for the potential .future development of
                                         ¥11-2

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cumulative risk assessment guidelines. These efforts provide data/guidance to improve the scientific
basis for environmental decision making.
Strategic Objectives and FY 2001 Annual Performance Goals

Objective 01: Increase Quality/Quantity of Education, Outreach, Data Availability

»      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. Identify and manage national E J "hot spots" and
       advise Administrator.

•      Improve public access  to  compliance and  enforcement  documents and data through
       multimedia data integration projects and other studies, analyses and communication/outreach
       activities,

Objective 02: Improve Public's Ability to Reduce Exposure

•      Process all submitted facility chemical release reports; publish annual summary of TRI data;
       provide improved  information to the public about TRI chemicals; and  maximize public
       access to TRI information.

Objective 03: Enhance Ability to Protect Public Health

•      Provide guidance  for risk assessment to improve the scientific basis of environmental
       decision making.
Highlights

       The increasing public access to electronic media offers unprecedented opportunities for EPA
to provide citizens with the information necessary to effect substantial environmental improvements.
In support of this objective and the President's  "Right-to-Know" goals, EPA will continue to
increase the amount and quality of publicly available information on environmental programs. EPA
also realizes that while it is important to provide up-to-date, accurate information, it must also ensure
that the public finds the information useful. The Agency collects data in a variety of systems, on
diverse environmental pollutants that impact land, air, water, as well as data on potential health
effects of chemicals in food and manufactured products. EPA is aggressively seeking to integrate
all relevant sources of data and information to enhance user-friendliness for the non-technical user
and to support comprehensive approaches to environmental protection.
                                         VII-3

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       In  2001, EPA  will continue to coordinate with the National Advisory Council on
Environmental Policy and Technology (NACEPT) and its standing committees to identify and foster
new environmental technologies. Other activities include facilitating and monitoring the Agency's
response to NACEPT recommendations that are accepted by the Administrator, and managing
statutorily -mandated advisory committees dealing with the North American Free Trade Agreement
(NAFTA)  implementation and U.S./Mexico border issues.  The advisory committees are: the
National Advisory Committee/Governmental Advisory Committee and  the Good Neighbor
Environmental Board.

       The Agency will establish a Federal environmental information system that will integrate
environmental information. The system will be fully compatible with state and tribal systems, allow
for electronic receipt and dissemination of information and incorporate data quality and error
correction processes.

       Key to achieving high quality will be the Information Integration Initiative.  In partnership
with the states and tribes, and in close consultation with our environmental information stakeholders,
we will develop a single integrated multi-media core of environmental data and tools - an integrated
environmental information system. Under the new system, EPA's individual media programs (i.e,
air, water, hazardous waste, etc.) will maintain flexibility to develop "plug-in" modules that will
incorporate program-specific requirements. However, at its core, the new system will be a single,
shared and integrated system.

       Efforts to allow better integration with our state and local partners will continue, including
support to the Local Government Advisory Committee and the Small Town Advisory Subcommittee.
In addition, EPA will design and manage meetings and conference calls and work with states and
state associations to ensure that state concerns are  considered in Agency policies, guidance, and
regulations.

       In partnership with states, the Agency will continue its efforts to expand publicly available
information, both electronically via the Internet and through other non-electronic media.  This
includes the One-Stop Reporting initiative, the Reinventing Environmental Information (REI)
initiative, and the Envirofacts database.  In 2001, the Agency will accelerate its efforts to promote
public access. The program will continue to support data integration proj ects such as Integrated Data
for Enforcement Analysis (IDEA), which makes integrated compliance data from several media-
specific databases available nationally in an interactive, online mode.  The Agency 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. Another data integration project, the
Sector Facility Indexing Project (SFIP), will be continued in 2001. SFIP, a White House Reinvention
initiative,  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
                                          ¥11-4

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provided, and sustaining the utility of the SFIP as a compliance and analytical tool. EPA believes
that these efforts will yield an  increase in web site user sessions over the 1999 levels.

       The Agency will continue to contribute to the Agency-wide Enhanced Public Access Project.
This Project is intended to make all significant Agency guidance, policy statements and site-specific
interpretations of the regulated entities'  environmental management practices electronically
accessible to the Regions, states, industry and  the public.  In 2001,  90% of enforcement and
compliance policy and guidance will be available on the Internet within thirty days of issuance. EPA
intends to add summaries of all significant  cases available on the Internet by April 2001. Further,
by the end of 2001, all ten EPA regional offices will have an enforcement and compliance website.
EPA will continue to manage telephone hotlines, disburse brochures and reports via the National
Service Center for Environmental Publications (NSCEP), respond to public inquiries and maintain
our national library networks to serve those without personal computers.

       The Agency will continue to participate in the Environmental Monitoring for Public Access
and Community Tracking (EMPACT) program. A Presidential initiative begun in 1998, BMP ACT
to date has set up systems to provide real-time data to the nations' 86 largest metropolitan cities.
EPA is working with four EMPACT cities to implement the Office of Enforcement and Compliance
Assurance's Clean Water Compliance Watch in those cities.  EPA will provide reliable, accurate,
and user-friendly information in  a time-  relevant period to the cities' residents regarding the
environmental/public health condition in the communities' water bodies during urban wet weather
events and 24-hour National Pollutant Discharge Elimination System (NPDES) wastewater non-
compliance events reported by the regulated entity,   hi 2001 the Agency  will focus on the
technology transference of this project to other EMPACT metropolitan  cities.

       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
500 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, consequently, to protect their families and their
communities as they see fit. These small grants have served as the "seed-money" for empowerment
of the residents of these communities, allowing them to speak for themselves and  make their own
decisions. In 2001, the program will continue to assist community-based organizations through the
community small grants program.

       Under the Emergency  Planning and Community Right-To-Know Act (EPCRA), EPA is
committed to expanding environmental release information gathered under the Toxic Release
Inventory (TRI). In 2001, EPA will process 110,000 facility reports and issue the TRI Public Data
Release for reporting year 1999. EPA will continue to expand the use of the Internet for delivering
this information, and we are making information available by zip code and facility.  Over the last ten
years, there  has been a significant  decrease in  the amount  of toxic materials released into the
environment, according to TRI reporting by facilities.
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       In October 1999, EPA finalized a rale to lower the TRI reporting threshold for certain
persistent bioaccumulative toxics (PBT) chemicals and to add other PBT chemicals to the section
313 list of toxic chemicals reported under TRI.  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 in plant, animal tissue, and in cases
involving mercury, polyehlorinated biphenyls (PCBs) and lead, human tissue. Currently, facilities
that manufacture or process less then 25,000 pounds or otherwise use less than 10,000 pounds of a
listed chemical do not need to report releases. Lowering these thresholds for PBTs will assure that
we get reporting on a larger fraction of the releases of these chemicals.  In August 1999,  EPA
proposed a rule to lower the threshold for reporting lead releases to TRI. Lead remains in the
environment for long periods of time and at high levels is toxic to humans. Currently, facilities are
not required to report their lead and lead compound releases unless they manufacture or process more
than 25,000 pounds or use  more than 10,000  pounds.  Under the proposed rale, the  reporting
threshold would be lowered to 10 pounds. This would substantially increase TRI  reporting by
industry by about  1,390 facilities or about 15,000 reports.

       EPA will ensure that small, minority and women-owned businesses receive a "fair share" of
Agency procurement dollars. This "fair share" may be received either directly or indirectly through
EPA grants, contracts, cooperative agreements, or interagency agreements. Pursuant to  P.L. 102-
389, the Agency has a national goal of 8% utilization of minority and women-owned businesses in
the total value of Agency procurements and financial assistance agreements.  This activity will
enhance the ability of small,  minority and women-owned businesses to participate in the  Agency's
objective to protect public health.
       Research

       In 2001, the Agency will provide guidance for risk assessment 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. The Agency will also collect, manage, and present environmental information for
the benefit of the Agency and the public in order to enhance the availability and utility of data,
information, and tools for decision making.  To that end, the Agency will develop new and/or update
Agency consensus human health assessments of21 environmental substances ofhigh priority to EPA
and make them publicly available on IRIS.
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External Factors

       EPA relies heavily on partnerships with the states, tribes, local governments and regulated
parties to protect the environment and human health. EPA's success depends on the ability of these
entities to access the decision-making process as it relates to then" local environment.  In addition,
EPA relies upon information management reforms that are essential to the Agency's approach to
environmental protection. Examples of management reforms designed to improve the availability
of environmental performance data to the public include implementation of data standards for major
systems and the subsequent information collection and data integration. The Agency is promoting
advanced technology, including the Internet, to disseminate environmental information at the local
level. New technology, emerging environmental problems or newly identified priorities could affect
the time frame for achieving the Goal 7 objectives.

       The ability of the Agency to achieve its strategic goal of expansion of Americans' Right-to-
Know about their environment is influenced by several factors over which the Agency has only
partial control. As such, success of these programs partially depends on the voluntary cooperation
and collaboration between EPA and the private sector and the general public. The success of the
Agency's  Right-to-Know or public  outreach  efforts  is ultimately  determined  by  increased
understanding by the public and their actions to improve their environment. We believe that with
increased education, outreach and data availability, the public will be better able to participate in
decisions that lead to solving the nation's environmental problems.
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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

            Expansion of Americans' Right to Know About Their Environment


Objective #1:  Increase Quality /Quantity of Education, Outreach, Data Availability

       By 2005, EPA will improve the ability of the American public to participate in the protection
of human health and the environment by increasing the quality and quantity of general environmental
education, outreach and data availability programs, especially in disproportionally impacted and
disadvantaged communities.
                                   Resource Summary
                                  (Dollars in thousands)
                                        FY1999
                                         Enacted
           FY2000
           Enacted
          FY 2001    FY 2001 Req. v.
           Request    FY 2000 Ena.
Increase Quality/Quantity of Education,
Outreach, Data Availability

   Environmental Program & Management

   Science & Technology

   State and Tribal Assistance Grants

   Hazardous Substance Superfund

       Total Workyears
$71,008.1
$98,700.3
$120,751.8
$22,051.5
$68,977.9
$0.0
$0.0
$2,030.2
403.7
$91,727.3
$3,540.5
$0.0
$3,432.5
450.5
$99,767.8
$1,640.6
$16,000.0
$3,343.4
438.6
$8,040.5
($1,899.9)
$16,000,0
($89.1)
(11.9)
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   Key Programs
(Dollars in thousands)

EMPACT
Reinventing Environmental Information (REI)
Environmental Education
GLOBE
SBREFA
Small Business Ombudsman
Center for Environmental Statistics (CEIS)
Information Technology Management
System Modernization
NACEPT Support
NAFTA Implementation
Direct Public Information and Assistance
Integrated Information Initiative (1-3)
Rent, Utilities and Security
Administrative Services
Regional Management
FY 1999
Enacted
$1,261.7
$12,547.8
$7,767.6
$0.0
$760.3
$1,110.3
$3,965.8
$4,234.8
$0.0
SO.O
$0.0
$0.0
$0.0
$0.0
$28.1
$0.0
FY2000
Enacted
$1,903.3
$0.0
$7,271.1
$1,000.0
$777.3
$1,120.3
$0.0
$0.0
$13,692.9
$1,822.5
$507.2
$4,248.9
$866.7
$413.0
$1,472.2
$254.3
FY2001
Request
$644.4
$0.0
$9,390.7
$1,000.0
$801.9
$1,162.6
$0.0
$0.0
$13,692.9
$2,166.7
$603,7
$4,789.3
$30,936.0
$426.9
$1,558.8
$405.5
       VII-9

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FY 2001 Request

       EPA continues efforts to provide an ever increasing quantity of information to the public so
that the public will be able to make informed and educated decisions on environmental issues
affecting their communities. Information will be made available to educators, academic institutions,
scholars, the public, news organizations, and the North American Free Trade Agreement (NAFTA)
partners so they may make more informed decisions that will help protect public health and the
environment.

       The effective management of EPA's data is central to the measurement of its progress in
delivering environmental protection. As the Agency continues to excel in a new era of information
technology and enhanced public access to data, EPA will ensure that the Agency's data is timely,
accurate, integrated, and useful to the public, and is able to effectively inform decision-making. The
Agency will work to promote data quality, reduce the burden associated with data collection and
reporting and enhance public access.

       The Agency will establish a Federal environmental information system that will integrate
environmental information. The system will be fully compatible with state and tribal systems, allow
for electronic receipt and dissemination of information and incorporate data quality and error
correction processes.

       A critical new way in which EPA will enhance its partnership with states is the Information
Integration Initiative (1-3),  1-3 will fundamentally change the way the Agency and the States do
business and will improve data accuracy, reduce burden ,and improve the utility of environmental
information for decision making at all levels. Working in partnership with the States and Tribes, the
Agency will establish a single, integrated multi-media core of environmental data and information.
This core will support a broad data exchange network with the States and Tribes. In addition, under
this system, EPA's individual media programs (air, water, hazardous waste, etc.) will maintain
flexibility to develop applications that meet program-unique data needs, but at its core, the new
system will be a single, shared and integrated  system more conducive to ensuring data quality and
accuracy.  The Information Integration Initiative will provide increased data accuracy, and more
reliable and high quality environmental data that will promote better understanding, and improved
accountability.

       Working together, EPA, states and tribes will establish data standards and shared business
practices that cover most of the  environmental information that regulated entities report to
government. The information system will improve the capability to carry out key environmental
management functions such as permitting and enforcement with greater efficiency.

       Throughout this effort, EPA will work  closely with the private sector software development
industry.  Our partnership with the states and tribes to develop standardized requirements and
business practices will stimulate the private sector to create commercial off-the-shelf software for
use by states and  reporting entities. Adopting a standardized approach will drive down costs and
                                         VII-10

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development time and increase functionality. Regulated businesses that must comply with regulatory
requirements and monitor their own environmental performance, environmental organizations
performing environmental analyses, and citizens interested in environmental conditions in their
communities will all benefit from affordable, reliable commercial software that is readily available
in the marketplace.

       In partnership with the states, EPA continues to implement the Reinventing Environmental
Information (REI) initiative, a multi-year commitment to implement key information management
reforms that are essential to support the Agency's new approaches to environmental protection these
reforms are important building blocks of 1-3, and will continue in close coordination with that effort.
Key elements of REI include the implementation of data standards for major systems and increased
availability of electronic reporting methods for regulated entities. Through a cooperative approach
with state environmental agencies, the Agency will focus on streamlining reporting by regulated
entities and ultimately improving the availability of environmental performance data to the public.
A central component is the establishment of a standard facility identifier for regulated entities.

       In addition, EPA will manage and support a comprehensive world wide web site to ensure
public access to Agency information such as databases, press releases, locator tools, fact sheets,
regulations, policy and guidance, and other Agency information.  The Agency will continue to
expand the  capabilities of the  Envirofacts database to provide more  targeted environmental
information to Federal agencies, environmental interest groups, the regulated community, state and
local communities, Tribal governments, and the general public.

       Multimedia resources serve to implement a grant program to educate students, individuals,
tribes and  communities about environmental  and health protection.  This program supports
educational and training programs that encourage replication of model environmental education
curricula programs and materials for educators and teachers. It also supports youth programs such
as the President's Environmental Youth Awards.  The National  Environmental Education Act
specifically earmarks the percentage of appropriated funds that must be used for activities under
certain sections of the Act. In addition to the  grants funded at Headquarters, the  Regions fund
approximately 200 to 250 grants per year, depending on the number of grant applications received.

       The Agency uses various media resources  to aid and increase public understanding of
science, thereby increasing public awareness of environmental issues and their technological and
scientific solutions. Resources for the Vice President's GLOBE initiative will be used to convene
workshops and meetings to involve scientists and educators in selecting appropriate environmental
observations that will be used to coordinate the work of students, teachers, and scientists to study
and understand the environment. Students will learn how to protect the environment and improve
their math and science skills.

       The  will  also  support the National Advisory Council on Environmental  Policy and
Technology (NACEPT) and its standing committees, facilitate and monitor the Agency's response
to NACEPT recommendations that are accepted by the Administrator, and manage statutorily-
                                        VH-11

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mandated advisory committees dealing with NAFTA implementation and U.S./Mexico border issues.
The committees are:  the Good Neighbor Environmental  Board and the National Advisory
Committee/Governmental Advisory Committee.  With these resources, EPA receives broad
stakeholder advice as national and international environmental policy is developed and implemented.
This is accomplished mainly by ensuring staff support and the efficient and effective operation of
EPA advisory committees. In the past two years, EPA's reinvention initiatives have concentrated
on enhancing the Agency's ability to use stakeholder processes in environmental decision-making.
This effort has expanded with an increasing emphasis on the public's "right-to-know." The below
summary of program  evaluations  describes EPA's activities and results in achieving quality
management of the Advisory Committee Program. It reflects the progress made toward measuring
the effectiveness and impact of this important process for public participation in environmental
decision-making.

      EPA controls an ever increasing quantity of correspondence, and routes, logs, and tracks
Agency Freedom of Information Act (FOIA) requests.  The Office of Executive Secretariat guides
and trains Agency personnel in FOIA and correspondence activities;  prepares a yearly FOIA report
to Congress; provides  program  oversight on FOIA; and manages and tracks executive
correspondence.

      The Agency will improve public  access to  water  quality data  in 2001  through  the
Environmental Monitoring for Public Access and Community Tracking (EMPACT) project.  The
project provides user-friendly information to the public  in the nation's largest 86 metropolitan areas
regarding the compliance status of local water dischargers and what non-compliance means for the
communities environment and public health condition.  EPA's watershed based electronic outreach
efforts, including Surf Your Watershed and the Index of Watershed Indicators (IWI), directly support
efforts to implement the President's  "Right-to-Know" goal  by providing up-to-date, accurate
information on the conditions and stressors in their communities.

      The IWI combines numerous  indicators of aquatic resource health to characterize  the
condition and vulnerability of more than 2,000 watersheds in the United States. Several Federal,
state and non-governmental organizations contributed data and technical  support to this Index.
These same agencies share in our past  water quality successes and will continue to be involved in
addressing the problems IWI brings to light. The IWI will also enable managers and community
residents to understand and take action to protect the watersheds where they live. The watershed
information provided by IWI can also lead to more specific information about their water, how they
compare to similar watersheds,  and what may  be causing problems.  Updating the IWI report
annually (and more frequently on the Internet)  will provide current information on human and
environmental health.   Additionally,  the  updates will be supplemented with more  data and
educational material each year.

      The regulatory development process ensures the Agency's compliance with various statutes
and Executive Orders.  Through unproved and streamlined regulatory processes  that include
increased public information, EPA is committed  to providing quality information to stakeholders.
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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 2001,  the Agency  will continue to advance this objective by ensuring that EPA
rulemakings adhere to all applicable  statutory  and  executive  requirements, and  achieve
environmental results with a minimum burden on the public.  The Agency will continue to expand
outreach to small entities such as small businesses, small governments, and small non-profits,
establishing formal mechanisms and building partnerships to advocate small entity involvement in
Agency rulemakings. EPA will complete Regulatory Flexibility analyses for all of its Rulemakings
that may have  significant impacts on a substantial  number of small entities and initiate a small
communities outreach  program to gather  information on impacts of EPA  rules on  small
communities. The Small Business Ombudsman will augment the Small Entities Homepage with
specific information on rules for 20% of the sectors identified by the Agency,  and improve small
entity outreach through training and technical assistance to Agency managers and Staff.

Enforcement

       EPA's enforcement and compliance assurance program will accelerate its efforts to promote
public access during 2001.  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. Another data integration project, the Sector Facility Indexing Project (SFIP),
will be continued in 2001. SFIP, a White House Reinvention initiative, 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. In addition to the  awareness of SFIP generated by
external publications relying on its data, EPA will continue its outreach efforts to the public,
industry, and research  community to promote the project and will ensure continued value by
updating the information three tunes per year.   EPA believes that these efforts will yield a 5%
increase in web site user sessions over the FY 1999 levels.

       The enforcement and compliance assurance program will continue to contribute  to the
Agency-wide Enhanced Public Access Project, intended to make all significant Agency guidance,
policy  statements and site-specific interpretations of the regulated entities' environmental
management practices electronically accessible to the Regions, states, industry and the public. In
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2001, 90% of enforcement and compliance policy and guidance will be available on the Internet
within thirty days of issuance.  EPA intends to add summaries of all significant cases available on
the Internet by April 2001. Furthermore, by the end of 2001, all ten EPA regional offices will have
an enforcement and compliance website.

       The enforcement  and compliance assurance program will continue to participate in the
Environmental Monitoring for Public Access and Community Tracking (BMP ACT) program. The
enforcement and compliance'assurance program is working with four EMPACT cities to implement
OECA's Clean Water Compliance Watch (CWA2) in those cities. The objective of the project is
to provide reliable, accurate, and user-friendly information hi a time relevant period to the public on
the environmental/public health condition in a community's water bodies during urban wet weather
combined sewer overflow (CSO), sanitary sewer overflow ( SSO), and stormwater events and 24-
hour National Pollutant Discharge Elimination System (NPDES) wastewater non-compliance events
reported by the regulated entity.  In 2001 the enforcement and compliance assurance program will
focus on the technology transference of this project to other EMPACT metropolitan cities.

Environmental Justice

       In 2001, EPA's environmental justice program will continue its educations, outreach, and
data availability initiatives. The Office of Environmental Justice (within the Office of Enforcement
and Compliance Assurance)  will continue to manage the  Agency's Environmental Justice
Community Small Grants Program whose purpose is to assist community-based organizations that
are working to develop solutions to local environmental issues.  The Community Small Grants
Program was established in 1994, and, since then, more than 500 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) 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.

       With respect to data availability, an Environmental Justice application will be developed in
2000 and 2001 under the leadership of the Office. The Environmental Justice application will:
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       •     Develop an  Environmental Justice  Web Query interface using some of the
             Envirofacts Web standards to provide searching capability by facility name and/or
             geographic reference identifiers.
       •     Provide Web Query Results in a matrix.
       •     Provide direct access to Enviro Mapper.
       •     Provide demographic data on the most recent census data available. Health data
             (such as county level mortality statistics) will be provided from federal sources such
             as data collected by the National Center for Health Statistics, the Centers for Disease
             Control, the Agency for Toxic Standards and Disease Registry and other health
             departments and agencies.

       The Agency supports and encourages user-friendly environmental justice programs of state
governments and tribal governments.  In 1998, this grants program was awarded to provide
incentives to states and tribes to promote environmental justice programs. Five (5) grant rands of
up to 100,000 were awarded to support projects, programs or activities that promote environmental
justice in 1998, for 1999, five (5) more grants were awarded. Participation is limited to state or tribal
environmental agencies that manage or are eligible to manage an EPA program.  Projects which
include community-based organizations are given priority.  The program conducts outreach and
technical assistance to states local governments, and stakeholders on environmental justice issues
as they relate to brownfields, hazardous waste management and site cleanup.

       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.

       EPA will also continue to cooperate with other countries to advance common goals for
environmental educations, meaningful public participation in environmental decision-making, and
developing sustainable communities.  In  1999, the program conducted a  series  of lectures and
presentations on  the issue of  environmental justice and sustainable  development  in Chile.
Additionally, the  Office participated in  an Organization for Economic Co-Operation  and
Development seminar in France on the "Social and Environmental Interface."

       Finally, the Agency also reviews environmental impacts of proposed major Federal actions
as required by the National Environmental Policy Act, Section 309 of the Clean Air Act and
Executive Order 12898 on Environmental Justice. The reviews focus on resource protection and
mitigation of adverse impacts to water and air resources, especially from  land management and
highway projects.
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FY 2001 Change from FY 2000 Enacted

MULTI-APPROP

       (+$14,069,300 EPM, +$16,000,000  STAG)  Provides resources  for the Information
       Integration Initiative, which will fundamentally change the way the Agency and the States
       do business and will improve data accuracy, reduce burden ,and improve the utility of
       environmental information for decision making at all levels.

EPM

•      (-$2,490,500) Resources are not provided for Congressional earmarks.

•      (+3,435,800) Reflects restoration of Environmental Education activities that were cut in
       2000.

•      (+$465,000; +5.0 FTE) Reflects a shift of resources from local/small government outreach
       to the Innovative Community Partnership Program in the new Office of Policy, Economics,
       and Innovation (formerly the Office of Reinvention).

•      (+$400,000) Reflects a shift of resources to higher priority FACA activities.

       (+$ 1,200,000) Reflects increased payroll costs and recalculations of administrati ve expenses.

•      (-$199,240) Resources are not provided for Congressional earmark.

S&T

•      (-$1,992,400)  Resources are not provided for Congressional earmark.


Annual Performance Goals and Performance Measures

Enhanced Public Access

In 2001 Improve public access to compliance and enforcement documents and data through multimedia data
       integration projects and other studies, analyses and coinmunication/outreach activities.

In 2000 Improve 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.
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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 in FY 2001
 available on the Internet within 30 days of issuance

By April 2001, make summaries of all
 significant cases available on the Internet

Increase by 5% the use of Sector Facilities
Indexing Project website user sessions over FY 99 levels
FY 1999
Actuals
FY 2000
Estimate
FY2001
Request
                21
                90
                                10
                                90
                                100
                                       percent
                        states
                        percent
                        Websites
                        Percent
                        Percent
                                       Percent
Baseline:        In FY 2001, we will accelerate our efforts to promote public access including activities such
                as use of the Sector Facility Indexing Project (SFIP) web-site, Regional enforcement and
                compliance web-sites, and access to enforcement and compliance documents newly issued
                in FY 2001.

Environmental Justice

In 2001  Ensure that EPA's policies, programs and activities address disproportionately exposed and under-represented
        population issues so that no segment suffers disproportionately from adverse health and environmental effects.

In 2000  Identify and manage hot spots where national environmental justice issues occur and to advise the Administrator
        on available solutions.

In 2000 Ensure that EPA's policies, programs and activities incl. public mtgs, address minority & low income comm.
        issues so that no segment of the pop. suffers disprop. from adverse health or env. effects, & that all people live
        in clean, healthy & sustainable comm. consistent w/ Executive Order 12898.

In 1999 EPA actively promoted environmental justice issues by holding 16NEJAC meetings (exceeding the target of
        10) and by providing environmental justice grants to 100 communities.
Performance Measures:
EJ Community Grants
FY 1999
Actuals

100
FY 2000
Estimate
FY2001
Request
                        Grants
                                                    vn-i?

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NEJAC Meetings                               16

Number of EPA-sponsored public
meetings held where disproportionately
disadvantaged communities participate.

Respond within 60 days to requests made
to each Region and AA-ship to address
complaints heard during public comment
period at NEJAC.

Number of grants awarded to low income,
minority communities for addressing
environmental problems.

Conduct NEJAC meetings and focused
Roundtables in local communities where
problems have been identified.

Increase to 20, the number of states that have
environmental justice programs

Award 100 grants to low income, minority
communities for addressing environmental problems

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 NEJAC meetings and focused
Roundtables in local communities where problems
have been  identified
        25
                               Meetings
        meetings
75
percent
        70
        18
        grants
        meetings
                       20      States
                       100     Grants
                       25      Meetings
                       75      Percent
                       18      Meetings
Baseline:       A means of identifying problem areas is through: public comments received during the
               National Environmental Justice Advisory  Committee  (NEJAC) meetings; reviewing
               Environmental Impact Statements (EIS) filed under the National Environmental Policy Act
               (NEPA) in which environmental justice (EJ) indicators occur as issues of concern which EPA
               will either resolve or work with the responsible agency to resolve; comminity's  concern
               about new or renewals of permits under RCRA, CWA, CAA, etc.; and complaints filed under
               Title VI of the Civil Rights Act.
                                               VII-18

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Verification and Validation of Performance Measures

Performance Measure: Increase by 5% the number of website user sessions over FY 99 levels.

Performance   Database:  Sector  Facility  Indexing  Project  database  and   Web   Site
(envirosense.com.stats) records statistics on SFIP user sessions on a monthly and weekly basis,

Data Source; Sector Facility Indexing Proj ect database, accessible through the Internet to interested
public and private parties,  records user sessions. This information is transferred by an EPA
contractor to the envirosense.com.stats database.

QA/QC Procedures:  OECA website  managers oversee the data collection and maintenance.

Data Quality Review: None

Data Limitations: User sessions may be under-counted because only one user session per day from
one server/site is recorded.

New/Improved Data or Systems: None


Performance Measure: By the end of FY 2001, all ten EPA Regions will have an enforcement
and compliance web site.

Performance Database: Output Measure. No database.

Data Source:  None

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems:  None


Performance Measure:  EPA will make 90% of enforcement and compliance policies and
guidances issued in FY 2001 available on the Internet within 30 days of issuance.

Performance Database:  Output Measure. Internal tracking system.

Data Source: Manual system. HQ will track date document was issued and uploaded to the internet.
                                       VII-19

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QA/QC Procedures: None

Data Quality Review:  None

Data Limitations:  None

New/Improved Data or Systems: None


Performance Measure:  By April 2001, make summaries of all FY 2000 significant cases
available on the Internet.

Performance Database: Output Measure. No database.

Data Source: None

QA/QC Procedures: None

Data Quality Review:  None

Data Limitations: None

New/Improved Data or Systems: None


Performance Measure: Hold 25 EPA-sponsored public meetings in which disproportionately
impacted and disadvantaged communities participate.

Performance Database: Output Measure. Internal tracking system.

Data Source: HQ will keep track of these meetings manually.

QA/QC Procedures: None

Data Quality Review:  None

Data Limitations: None

New/Improved Data or Systems: None
                                    VII-20

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Performance Measure: Increase to 20, the number of states that have environmental justice
programs.

Performance Database: Output Measure.  Internal tracking system.

Data Source:  HQ and the Regions will keep track of the number of states,

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems; None


Performance Measure: Respond within 60 days to 75% of requests made to each Region and
AA-ship to address complaints heard during public comment period at NE JAC.

Performance Database: Output Measure.  Internal tracking system.

Data Source:  HQ will keep track of responses sent.

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None


Performance  Measure:  100 grants awarded to  low income, minority communities for
addressing environmental problems

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
                                     VII-21

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Data Limitations: None

Hew/Improved Data or Systems: None


Performance Measure:  Conduct 18 NEJAC meetings and  focused Roundtables in local
communities where problems have been identified

Performance Database:  Output Measure. Internal tracking system.

Data Source: HQ will keep track of these meetings manually.

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None
                                     VII-22

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Coordination with Other Agencies

      EPA, in cooperation with U.S. Geological Survey (USGS), U.S, Department of Apiculture
(USDA), National Oceanic and Atmospheric Administration (NOAA) and with the supporting
efforts of the U.S.  Census Bureau, U.S. Corps of Engineers, and U.S. Fish and Wildlife Services
(USFWS), will continue its work to characterize watershed conditions and to document non-point
and point  source pollution in watersheds across the Nation.  Approximately two interagency
workshops are held each year to discuss the future of Index  of Watershed Indicators (IWI), and
progress made on improving the individual indicators and the Index as a whole. EPA and USGS
have also formalized a working group to explore and develop additional data based upon the mutual
interest of EPA and USGS.

      EPA will work with other Agencies to ensure consistency in environmental information
offered to  the public and will work with the Small Business Administration as appropriate on
regulations that affect small businesses.

      National Environmental Justice Program: Quarterly meetings are held with agencies named
in Executive Order 12898 to review the environmental justice activities underway and to discuss
participation in the National Environmental Justice Advisory Council (NEJAC) and issues raised
during NEJAC meetings.

      EPA will consult with stakeholders through a data quality/data gaps conference, focus group
meetings, the ECOS Data Management Subcommittee, informal discussions with environmental and
industry groups, and review  by a public advisory committee, National  Advisory Council on
Environmental Policy and Technology (NACEPT).
Statutory Authorities

National Environmental.Education Act

Federal Managers Financial Integrity Act (FMFIA)

Government Performance and Results Act (GPRA)

Clinger-Cohen Act

Computer Security Act

Privacy Act

Freedom of Information Act (FOIA)



                                       VII-23

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Clean Air Act (CAA) (42 U.S.C. 7601-7671q)

Clean Water Act (CWA) (33 U.S.C. 1251 -1387)

Comprehensive Environmental Response, Compensation, and Liability Act (CERCL A)
(42 U.S.C. 9601-9675)

Emergency Planning and Community Right-to-Know Act (EPCRA) section 313 (42
U.S.C. 110001-11050)

Federal Advisory Committee Act (FACA) (5 U.S.C. App.)

Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) (7 U.S. C. 136-136y)

Pollution Prevent Act (PPA) (42 U.S.C. 13101-13109)

Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901-6992k)

Safe Drinking Water Act (SDWA) section 1445 (42 U.S.C. 300f-300j-26)

Toxic Substance Control Act (TSCA) section 14 (15 U.S.C. 2601-2692)

Northe American Agreement on Environmental Cooperation

Freedom of Information Act (FOIA) 5 U.S.C. 552)

Paperwork Reduction Act Amendment of 1995 (44 U.S.C. 3501-3520)

Small Business Regulatory Enforcement Fairness Act (SBREFA)

Unfunded Mandates Reform Act

Congressional Review Act

Regulatory Flexibility Act

Executive Order 12866

Plain Language Executive Order
                                      VII-24

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

            Expansion of Americans' Right to Know About Their Environment


Objective # 2:  Improve Public's Ability to Reduce Exposure

       By  2005,  EPA will improve the ability of the public  to  reduce exposure to specific
environmental and human health risks by making current, accurate substance-specific information
widely and easily accessible.
                                   Resource Summary
                                  (Dollars in thousands)
                                        FY 1999
                                         Enacted
           FY2000
           Enacted
FY 2001    FY 2001 Req. v.
Request     FY 2000 Ena.
Improve Public's Ability to Reduce Exposure

       Environmental Program & Management

              Total Workyears
$42,114.6      $57,839.7     $39,605.9       $1,766.2

$42,114,6      $37,839.7     $39,605.9       $1,766.2

   223,8         222.3        225.9           3.6
                                          VII-25

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                                     Key Programs
                                  (Dollars in thousands)

Drinking Water Consumer Awareness
Pesticide Registration
Pesticide Reregistration
Toxic Release Inventory / Right-to-Know (RtK)
EMPACT
Rent, Utilities and Security
Administrative Services
FY 1999
Enacted
$1,622.9
$5,634.9
$5,882.4
$19,799.6
$753.1
$0.0
$0.0
FY 2000
Enacted
$1,537.2
$4,019.3
$4,018.1
$17,671.8
$1,436.4
$436.8
$484.4
FY 2001
Request
$1,595.8
$4,446.1
$4,446.1
$17,647.7
$3,307.6
$451.6
$499.1
FY 2001 Request

       To support the public's Right-to-Know, the Agency must identify information needs and
tailor the data collection, presentation and dissemination accordingly. The more comprehensive the
information is, the more useful it can be. One priority for the Agency is to continue to identify
information gaps that reduce the ability of the public to make  sound environmental decisions.
Without information on relative levels and types of emissions, for instance, a town might not be able
to make the best choice in siting a new playground.  Gaps could be associated with specific
pesticides and chemicals, drinking water contaminants, specific industrial sectors or specific data
elements and reference sources.

       EPA will continue supporting comprehensive approaches to environmental protection. These
approaches include community-based environmental and ecosystem protection on a facility- and
location-specific basis, rather than more media- (air, water, etc.) or statute-specific basis the Agency
has used in the past.  A complementary  and supporting information management approach
coordinates and integrates the separate Agency 'points of view' to provide a comprehensive view
of environmental data. The increased availability and accuracy of locational and spatial data, the
establishment of the  central  structure  required  to support  data  standards, and  a  registry of
environmental data form the foundation for this new strategy for environmental data management.
In tune, these new information technology methods will help fundamentally change the way EPA
conducts its information management business. To further enhance these changes, the Agency is
committed to working in partnership with the Federal Geographic Data Committee to implement a
national spacial data  infrastructure, which will  enhance communities' ability  to pinpoint the
environmental information most relevant to their locale.
                                        VH-26

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       The public, EPA, states, tribes, and local staff, companies, and other stakeholders have
analytical needs that require more than simple access to data. In other words, data access is not
sufficient for many users.  To understand what the data mean, users need:  guidelines to aid data
analysis and interpretation; metadata and contextual information to support understanding data and
its limitations; reliable analytical tools for analysis; and targeted analytical products that help to
answer key questions, save users time and effort, and demonstrate the use of best practices in
environmental analysis.

       EPA will provide environmental analysis that responds to these needs, complementing data
access with analysis to support environmental understanding. On a continuing basis, EPA will carry
out dialogues with its partners, stakeholders, and users to make sure their needs are fully understood
and are being addressed. Users will have choices between accessing raw data, 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 and actions that will be more protective of human health and the environment.
Insights gained from environmental analysis will support a fuller understanding of environmental
outcomes, and remaining problems and challenges.  Environmental analysis will support better
regulatory decision-making and greater knowledge of the environment.   In turn, environmental
analysis will lead to better targeting of those data gaps and opportunities that when  fulfilled, will
provide the greatest benefits, at affordable costs and acceptable risks.

       An essential part of a comprehensive national approach to environmental protection is the
fall and active participation of the American public and their communities in environmental priority
setting; risk reduction, remediation, and both short-term and long-term environmental planning.
Informed public and their communities can better assess the relative severity of environmental risks,
especially those focused in specific geographic locations. Local residents must be fully informed
to best weigh the opportunities for prevention or remediation, and the tradeoffs and uncertainties that
underlie many environmental decisions. Communities that have access to the information and data
that characterize risks from chemical and pesticide use and industry and agricultural production
within their boundaries are better prepared than those  without access to information to make
decisions about their day-to-day activities.

       Providing understandable, accessible, accurate, comprehensive and timely information on
chemical emissions and pesticide use to the broadest audience possible will enable residents and
communities to reduce their environmental and human health risks associated with many of these
materials allowing the public to make responsible decisions about protecting itself and the
environment.
                                         vn-27

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       EPA builds partnerships with
state,  tribal and local governments
and non-governmental organizations
to  ensure   that   environmental
information is widely available, EPA
is  upgrading  the  electronic
distribution   of   environmental
information   by   significantly
expanding the type and amount of
information available on the Internet
and by providing easy access to data.
For   example,   communities
increasingly  can obtain  TRI  and
pollution prevention  data  via the
Internet,  to   help   in  evaluating
environmental problems.

Reductions in TRI Releases Points
           to Progress
             TRI On- and Off-site Releases
              Trends between 1988 and 1997
                                            g Off-site
                                            | Land
                                            QUU
                                            jj Water
                                            BAir
                                    1996  1937
* using the 1988 cow set of chemicals
                 "Does not include delisted chemicals or chemicals added in 1990-1995.
       Under the Emergency Planning and Community Right-To-Know Act (EPCRA), EPA
successfully provides the public with valuable chemical release data through the Toxic Release
Inventory (TRI). EPCRA requires that companies in certain industry sectors report annually to EPA
the amounts of more than 600 specified toxic chemicals and chemical categories released into the
environment at their facilities. EPA compiles this information and makes it available to the public
in an annual report. With this information, communities know what toxic chemicals are released in
their communities, and companies can identify opportunities for source reduction. Over the life of
the TRI program, EPA has noted continuing declines in chemical releases in the reporting industrial
sectors.

       Incorporating the most recent scientific developments is important to rnaintaining an effective
TRI program. Lead and lead compounds are currently on the TRI list due to their toxicity; they are
also persistent and bioaceurnulative.  Persistant Bioaccumulative Toxic chemicals (PBTs) are of
special concern because they do not readily break down into less harmful components in the
environment - they persist. They also bioaccumulate, that is they enter the food chain and build up
into higher concentrations in plant or animal tissues, and cases involving mercury, polychlorinated
biphenyls (PCBs) and lead, human tissue. EPA is lowering the reporting threshold for certain PBT
chemicals to assure that the public has information on toxic chemicals that are persistent and
bioaccumaltive but are manufactured, processed or used in lower volumes than what is currently
reported to TRI, These refinements to TRI will allow the public access to more comprehensive
information.  The Agency is  working to provide a broader environmental picture for local
communities by offering more contextual and background information, such as comparisons across
chemicals or geographic areas and industrial sectors.
                                         VII-28

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       EPA continues to support the base TRI program, which includes processing reporting forms
and providing consolidated data to the public.  In 2001 EPA expects to process approximately
110,000 facility reports (Toxic Release Inventory Form R's), and subsequently will issue the TRI
Public Data Release for reporting year 1999. EPA presents the TRI data in various forms and media
to meet the needs of individual and community date users.

Pesticides

       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
proposed; new standards (as with FQPA) are applied to old pesticides; and new information is
received about pesticides and their impact in the environment. Because pesticides affect everyone,
it is especially important that citizens have accessible, comprehensive, and useful information about
their effects and uses.

       EPA will continue to ensure that training, education materials and programs reflect the most
recent developments and findings concerning pesticides. EPA will provide  tools, training and
assistance to communities to enable them to use the data, A catalogue of tools is under development
that will provide information on the characteristics and effects of  pesticides. The tools include
databases, information hotlines,  and descriptions of programs  and initiatives that affect  local
environments. This catalogue will be available as a printed manual and on the Internet with links
to other EPA information sites. The catalogue will include descriptions of analytical tools, technical
guidelines and other information to help communities learn about risks of pesticides.

       EPA will continue to coordinate with other Federal Agencies on outreach initiatives, FQPA
activities, Internet updates, improvements on consumer labels and distribution to grocers of the
consumer brochure on the health effects of pesticides. A website is also being developed to make
this material and other pesticide related information available to a wide public audience.  EPA will
continue to maintain the National Pesticide Telecommunications Network, an 800-telephone number
service that provides communities and the public information on pesticides.

Assistance to Communities

       EPA pursues a collaborative approach to environmental protection that brings together public
and private stakeholders within a community to identify local environmental concerns, set priorities
and forge comprehensive solutions. This approach integrates environmental protection with public
needs, considers long-term ecosystem health and fosters linkages between economic prosperity and
environmental well-being. It encourages communities to create a vision of environmental health and
quality of life and to adopt public activities compatible with that vision.

       EPA has extensive responsibilities in supporting community-based environmental protection
efforts.  EPA strives to make environmental information and tools available to communities and

                                         VH-29

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citizens to help them make informed choices about their local environment, including where to live
and work,  how to decide what potential exposures  are  acceptable, to assess the general
environmental health of themselves and their families, to identify pollution prevention opportunities,
and to build a consensus on actions to improve the local environment. One aspect of this effort is the
successful implementation of the TRI program, building on the concept of right-to-know, which has
greatly expanded the availability of chemical release information to the public. It has encouraged
citizens and communities to become active participants in environmental decision-making.

       EPA assures that training and education materials  and programs  keep pace with the
information and data that the Agency provides to the public. Communities receive not only data but
the tools, training, and assistance to use those data in  ways that help citizens make informed
environmental decisions.  EPA  supports and encourages the interdisciplinary environmental
education programs of state  and local governments,  schools and universities and nonprofit
organizations through grants, teacher training, internships and national recognition of outstanding
efforts and model programs. EPA works to  build stronger partnerships with other governmental
organizations and with the private sector to improve public understanding of the role of science in
environmental decision-making.

       EPA is working with universities to incorporate risk assessment and pollution  prevention
approaches into engineering curricula. The Agency is developing a textbook on Green Process
Design and other instructional materials for use by engineering schools.  These materials will be
made available through the Internet and easily accessible to the public.

       An important focus of the 1996 Amendments to the Safe Drinking Water Act is to provide
better information to consumers on the quality and safety of their drinking water. Pursuant to that
statute, EPA promulgated a rule in 1998 requiring systems to issue annual drinking water consumer
confidence reports.  These reports provide the American public, for the first time, with regular
information  on the quality of their  drinking water.   Consumer confidence  reports apply to
approximately 56,000 community water systems that serve about 92 percent of the population, i.e.,
248 million people. In addition, EPA is initiating activities (e.g., polls, focus groups) to ensure that
the public is satisfied with the information they are receiving about the quality and safety of then: tap
water.

       In 2001, drinking water systems will be providing their customers with an annual consumer
confidence report containing such detailed information as:

—the rivers, lakes, aquifers that are the source(s) of their drinking water;
—likely sources of any contaminants;
—whether or not the tap water meets EPA's safety standards;
—health risks in systems that violate the safety standards;
—actions taken to remedy violations; and
—ways for vulnerable populations to avoid cryptosporidium.
                                         VII-30

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       These annual consumer confidence reports are to be mailed by large water suppliers, either
as a bill insert or a separate mailing. Smaller systems (those serving less than 10,000 people) may
be able to post their report in a central location or print it in a local newspaper.
FY 2001 Change from FY 2000 Enacted

EPM

*      (+$2,165,200) Reflects  a eost-of-lrving adjustment  and an increase for the BMP ACT
       program,



Annual Performance Goals and Performance Measures

Drinking Water Consumer Confidence Reports

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

In 2000     All community water systems will issue annual consumer confidence reports according to the
           rule promulgated in August 1998.

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

Performance Measures:                            FY 1999       FY 2000       FY2001
                                               Actuals        Estimate       Request

Community water systems that will comply
with the regulation to publish, consumer
confidence reports.                                              55,000         55,000     CWSs

Number of states with which EPA has an
agreement on the most efficient and
effective methods (e.g., training, outreach)
for implementing this rule in each state.               50                                      States

Population served by CWSs  that will comply
with the regulation to publish consumer
confidence reports.                                              249 Million     249 million  People

Baseline:    All community water systems are expected to be in compliance by the end of 2000.
                                                VII-31

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Expand Local Information on Toxic Substances

In 2001     Provide information and analytical tools to the public for assessing the risks posed by the release of
           toxic substances in communities.

In 2000     Provide information and analytical tools to the public for assessing the risks posed by the release of
           toxic substances in communities.

In 1999     The TRI Persistent Bio-accumulative Toxics rule was proposed. The final rule was published in the
           Federal Register in October 1999 (FY 2000).

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Addition of PBTs to TRI rule-making                 Final                                       Rule

Provide current national risk screening
information to the public                                             1998 (data)     1999 (data)  Reports

Completion of community risk identification analyses                    2               2           Analyses

Baseline:   Release of national risk screening information first occurred in FY 1999.  First community risk
           identification analyses will be completed in FY 2000.


Process and Disseminate TRI Information - OEI

In 2001     Process all submitted facility chemical release reports; publish annual summary of TRI data; provide
           improved information to  the public about TRI chemicals; and maximize public  access to TRI
           information.

In 2000     Process all submitted facility chemical release reports; publish annual summary of TRI data; provide
           improved information to  the public about TRI chemicals; and maximize public  access to TRI
           information.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

TRI Public Data Release                                             1 Report        1 Report    Published

Form R's Processed                                                 110,000        110,000     Forms

TRIS database complete and report issued                              02/2001        02/2001     Published

Data quality: keep data entry error rate below 1% per form               below 1%       below 1%   Error Rate

Increase magnetic media use for TRI reporting                          72%            72%        Magnetic Media

Baseline:   Number of facilities reporting and number of chemicals included in TRI compared with prior year;
           types of public access methods and % magnetic reporting prior year.
                                               VH-32

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Verification and Validation of Performance Measures

Performance Measure: Form R*s processed

Performance Database:TRIM: Toxic Release Inventory Modernization. (Replaces Toxic Release
Inventory System (TRIS)) Contains information reported on TRI annual submissions. TRIM contains
modules for tracking statistical information

Data Source: Information provided by regulated community.

QA/QC Procedures: QA/QC Protocol Document lists various edit cheeks, data scrubs, corrections,
and normalizations such as city and county name, allowing for more accurate and complete results
during data searches.

Data Quality Review:  Internal review of hard copy transcription. Not available for reporting year
1998 data but will be reinstituted for subsequent years. Includes a manual comparison of data entered
with data received.

Data Limitations: Data are self-reported. Guidance directs values to be based on best readily
available information. High variability in data collection may exist among facilities.

New/Improved Data or Systems:  TRIM is the result of a two-year modernization process.
Performance Measure: Toxic Release Inventory (TRI) database complete and report issued

Performance Database: Output measure. No database.

Data Source: N/A

QA/QC Procedures:  N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A
                                       VII-33

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Coordination with Other Agencies

       While the TRI program does not coordinate extensively with other federal agencies, it has
substantial interaction with state agencies.  States use TRI data for a number of purposes.  For
instance, many states use TRI data in geographic information systems (GIS). Eachyear, the National
Conference of State Legislatures (NCSL) conducts an assessment of state TRI programs. This
assessment gathers basic information about the state TRI programs including  data management and
data use, as well as outreach and services for the public and for industry. The survey has found that
some states enter some or all of the TRI data into their state database, while others download all
EPA's TRI data into their database. Most states conduct outreach programs to explain TRI reporting
requirements to industry.  In addition, most states provide copies of the TRI reporting forms filed
by facilities  to the public upon request.  States and EPA work together to ensure that data are
collected and effectively utilized.

       With respect to community-based environmental programs, EPA may coordinate on an ad-
hoc basis 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 Federal geographic Data Committee to develop the infrastructure for
national spacial data. EMPACT proj ects also coordinate with the US Geological Survey to integrate
data collection efforts.

       As part of the development process for the pesticides consumer brochure, EPA works with
stakeholders through  the Pesticide  Program  Dialogue Committee (PPDC), which includes
Department  of Agriculture and Food and  Drug Administration representatives.  The PPDC, a
committee under the Federal Advisory Committee Act,  brings together a broad cross-section of
knowledgeable individuals from organizations representing divergent views to discuss pesticide
regulatory policy and implementation issues regarding pesticides. The committee consists of a well
balanced cross-section of members from industry/trade associations, pesticide user and commodity
groups, consumer and environmental/public interest groups and others.
Statutory Authorities

Emergency Planning and Community Right-to-Know Act (EPCRA)

Pollution Prevention Act (PPA)

Federal Fungicide, Insecticide and Rodenticide Act (FIFRA)

Federal Food, Drug and Cosmetic Act (FFDCA)

Safe Drinking Water Act (SDWA)


                                        VII-34

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'I      Federal Managers Financial Integrity Act (FMFIA)




      Government Performance and Results Act (GPRA)




      Paperwork Reduction Act (PRA)




      Freedom of Information Act (FOIA)




      Computer Security Act




      Privacy Act




      Electronic Freedom of Information Act
                                            VII-35

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                             Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

            Expansion of Americans' Right to Know About Their Environment


Objective #3: Enhance Ability to Protect Public Health

       By 2005, EPA will meet or exceed the Agency's customer service standards in providing
sound environmental information to federal,  state, local, and tribal partners to enhance their ability
to protect human health and the environment.
                                    Resource Summary
                                   (Dollars in thousands)
                                         FY1999
                                         Enacted
           FY2000
           Enacted
           FY 2001    FY 2001 Req. v.
           Request     FY 2000 Ena.
Enhance Ability to Protect Public Health

    Environmental Program & Management


    Science & Technology

    Hazardous Substance Superfund

       Total Workyears
$25,960.5

$14,031.1

$11,662.7


  $266.7

   151.3
$23,100.1

$11,425.3

$11,502.8


  $172.0

   145.6
$24,751.4

$11,499.9

$12,907.0


  $344.5

   145.0
$1,651-5

  $74.6


$1,404.2

 $172.5

   (0.6)
                                          VII-36

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                                    Key Programs
                                 (Dollars in thousands)

EMPACT
Small, Minority, Women-Owned Business Assistance
Congressional Projects
Congressional/Legislative Analysis
National Association Liaison
Regional Operations and Liaison
Administrative Services
FY 1999
Enacted
$6,313.7
$2,064.4
$0.0
$0.0
$0.0
$0.0
$0.0
FY2000
Enacted
$6,351.8
$2,188.3
$1,968.5
$3,119.0
$322.4
$598.3
$68.1
FY 2001
Request
$7,137.6
$2,367.4
$2,173.3
$3,274.6
$337.4
$613.5
$70.3
FY 2001 Request

       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. Itensures 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 subj ect 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 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. TMs office works closely with the
Agency's program offices to keep them informed of current activities at the local level and of any
policies the local governments and national associations may be advocating that affect a particular
program office's subject area. OCIR also supports the Local Government Advisory Committee and
the Small Town Advisory Subcommittee.

       As the lead for liaison with  state and local agencies,  OCIR provides regular, timely
communication by preparing the  Agency's leadership to effectively address priority issues and
develop appropriate responses. It works with states and state associations to ensure that state
                                        VII-37

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concerns are considered in Agency policies, guidance, and regulations.  Additionally, OCIR
functions as the lead on state issues relating to the National Environmental Performance Partnerships
System.

       The Agency's Office of Small and Disadvantaged Business Utilization (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. 102-389, the Agency has a
national goal of 8% utilization  of minority and women-owned businesses in the total value of
Agency procurements and financial assistance agreements.  This activity enhances the ability of
small, minority and women-owned businesses to participate in the Agency's objective to protect
public health and the environment.

EMPACT

       In 2001, EPA will continue to provide grants directly to metropolitan areas for local projects
that show innovative and effective ways to monitor and deliver real-time information to citizens.
These projects may address a community's interest in clean air, clean water, lead contamination,
ocean pollution, overall ecosystem quality, or other important environmental aspects  where
Americans live, work, learn, and play. These metropolitan area pilots will emphasize active
partnerships  between  local  and state  government,  research institutions,  non-governmental
organizations (NGOs), the private  sector, and  the  Federal government to provide timely
environmental information to the public.

       In 2001 funding will be made available directly to metropolitan areas  to adopt new
technologies that have been proven effective and/or used by other EMPACT metropolitan areas to
monitor and report local environmental conditions.  These grants will help to build capacity in
EMPACT communities to sustain time relevant environmental monitoring.
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       Research
       EPA supports a portfolio of research and regulatory programs to  develop and apply
environmental health and ecological risk assessments methods, models, and information, ecological
toxicity information,  and improvements in monitoring, measurement, and data management
technologies to protecting human health and the environment. Providing the American with public
access to sound environmental information is essential to protecting the environment. Access to
environmental information enables the public to be involved and informed environmental decision
makers. An important effort in striving toward that goal is the Integrated Risk Information System
(IRIS), which is an EPA database of Agency consensus health information on environmental
contaminants. The database is used extensively by EPA Program  Offices, Regions, the States, and
the general public where consistent, reliable toxicity information is needed for credible risk
assessments.  Also under mis objective are 1) the Agency's Risk Assessment Forum (RAF), which
promotes EP A-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; and 2) the EVISTA (Evaluation and Interpretation of Suitable  Tests in
AQUIRE1) database, which provides EPA's program offices and regions with ecological toxicity
information.  Following is a discussion of the FY 2001 research program.
       IRIS

       The   human  health  effects
information in IRIS is widely used for
risk assessments  and  other health
evaluations at all levels of government,
as well as in the public and private
sectors. The currency and credibility of
health effects information is critical for
credible risk assessments.   As more
risk-based decision-making takes place
at the state and local levels,  access to
credible health effects information is
essential, but difficult for individuals to
find or generate. Risk assessors request
EPA  to provide it.  To  ensure the
quality,  accuracy,   credibility,  and
applicability   of  IRIS  data,  all
assessments undergo external scientific
peer review.
         EMPOWERING PEOPLE
         Areas of Emphasis in FY 2001
                                    25.7%
65.1%
 Integrated Risk Information
 System (IRIS)
 EVISTA Data Base
 Risk Assessment Forum,
 etc.
                                        9.2%
        AQUIRE (Aquatic Toxicity Information Retrieval) is a database containing scientific papers published both nationally
and internationally on the toxic effects of chemicals to aquatic organisms and plants.
                                          VII-39

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       In FY 2001, the Agency will continue its efforts to: 1) produce, update, and maintain health
assessments in IRIS; 2) ensure appropriate external peer review of IRIS summaries and support
documents; 3) facilitate Agency consensus and resolve issues in a timely manner; 4) maintain a
widely-accessible Internet version of IRIS, available at the local level to support community-based
environmental protection; 5) provide active outreach and communication with users; and 6) provide
long-term maintenance of the IRIS web site, including explanatory materials and communication
with users, and outreach to potential new users. In FY 2001, the Agency has a goal of completing
21 chemical assessments and making them available on IRIS,

       Risk Assessment Forum

       The Agency' s Risk Assessment Forum (RAF) will continue to develop a number of products
to assist risk assessors, such as developing risk assessment guidelines, technical panel reports on
special risk assessment  issues,  and peer consultation and peer review workshops addressing
controversial risk assessment issues. In FY 2001, the RAF will focus hi three areas: cumulative risk
assessment, ecological risk assessment, and risk assessments for children.

       EVISTA

       EVISTA involves the development and maintenance of a high quality database as a means
of providing ecological toxicity information to States, Regions and the public. The database effort
for EVISTA will contain ecological toxicity information used to develop water quality criteria for
the protection of aquatic life,  wildlife  and terrestrial  plants.  The database will make available
evaluated and interpreted results of selected aquatic toxicity tests.  In FY 2001, EVISTA will be
available on the Internet with the initial  release of critically evaluated chemical effects data to
support aquatic life and wildlife risk assessments and criteria development.
FY 2001 Change from FY 2000 Enacted

EPM

•      (-$882,900, -10.8 FTE)  Reflects decreased emphasis in regional activities under this
       objective.

       (+$505,000) Reflects a cost-of-living adjustment.

S&T

       (+$1,038,400) Reflects a cost-of-living adjustment and an increase for the EMPACT
       program.
                                        VII-40

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SUPERFUND

       (+$ 172,500) Reflects a cost-of-living adjustment.


       Research

S&T

»      (+$564,000, +2,1 workyears) The R&D program, including infrastructure support costs, is
       spread across eight of the ten goals in the Agency's GPRA/budget structure. Based on a
       review of actual infrastructure utilization under each goal (i.e., utilization of workyears and
       associated PC&B, travel, operating expenses, and working capital fund), adjustments are
       being made across goals to more accurately reflect expectations for use in FY 2001.



Annual Performance Goals and Performance Measures

Environmental Information

In 2001     Collect, manage, and present environmental information for the benefit of the Agency and
           public by funding Environmental Monitoring for Public Access and Community Tracking
           (EMPACT) grants to an additional 6-9 EMPACT Metro areas.

In 2000     Collect, manage, and present environmental information for the benefit of the Agency and
           public by funding Environmental Monitoring for Public Access and Community Tracking
           (EMPACT) grants to an additional 6-9 EMPACT Metro areas.

Performance Measures:                            FY 1999        FY2000        FY2001
                                               Actuals         Estimate        Request

Number of grants awarded to EMPACT Metro Areas.                   6-9            6-9        Grants

Baseline:    A total of 16 grants are planned to have been awarded in FY 2000.

Research

Risk Assessment

In 2001     Provide guidance for risk assessment to improve the scientific basis of environmental decision-
           making.

In 2000     Develop data interpretation tools and risk communication  tools  to provide time relevant
           information to the public and environmental communities.

In 1999     Neurotoxieity guidelines and the chemical mixtures report were completed. The revised cancer
           guidelines have been delayed. EPA asked the Science Advisory Board to again review the cancer
           guidelines, and to review the chloroform risk assessment that applies the guidelines.
                                              VII-41

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Performance Measures:
Publication of final Guidance for Carcinogenic
Risk Assessment, Neurotoxicity Risk Assessment,
and Health Risk Assessment of Chemical Mixtures.

Develop a web-enabled inventory of environmental
information that provides information about and
access to data sets, databases, models, and
documents produced by or used by the Agency.

The Agency's Risk Assessment Forum will develop
a framework to integrate the assessment of cancer
and non-cancer endpoints.

The Risk Assessment Forum will develop an
improved framework for the use of Toxicity
Equivalency Factors for dioxins, furans, and
PCBs in aquatic and wildlife risk assessments.

The Agency's Risk Assessment Forum will develop
technical issue papers and develop a framework for
preparing cumulative risk assessments.

The Agency's Risk Assessment Forum will develop
guidance on determining management objectives and
selecting assessment endpoints for ecological
risk assessment.

The Agency's Risk Assessment Forum will develop
technical guidance on the identification of
appropriate age groups for exposure
assessments for children.
FY 1999
Actuals
FY 2000
Estimate
FY2001
Request
                                           Inventory
                                           Framework
                                           Framework
                                           Framework
                                           Guidance
                                1
                            Guidance
Baseline:    The enactment of the Food Quality Protection Act and a number of community based assessment
            initiatives have highlighted the need for EPA guidance on assessing the cumulative impacts,
            especially on children, from multiple environmental stressors.  The Risk Assessment Forum
            (RAF) is developing technical papers providing initial guidance  on difficult cumulative risk
            assessment issues and a framework for cumulative risk assessment to serve as a foundation for
            the potential future development of cumulative risk assessment guidelines. The RAF will also
            develop guidance on defining children's subgroups and identifying the appropriate age groups for
            children's exposure assessments.  During development of the Guidelines for Ecological Risk
            Assessment, many reviewers asked that additional detailed information be provided.   The
            Objectives project focuses  on the translation of broad management goals into more specific
            management objectives. Background information has been gathered to support development of
            the forthcoming Assessment Endpoints guidance document
                                                  VII-42

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Environmental Science Information

In 2001      Collect, manage, and present environmental information for the benefit of the Agency and the
            public in order  to enhance the availability and utility of data, information, and tools for
            decision-making.

In 2000      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.

In 1999      Two IRIS summary documents were completed. Delays in completing other IRIS summaries are
            due mainly to science issues inherent to completing the assessments.

In 1999      Eight (8) pilot projects were completed in FY 1999 under the EMPACT program. These projects
            implemented timely and high quality environmental monitoring technologies in EMPACT cities.
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 21 environmental
substances of high priority to EPA and make
them publicly available on IMS.

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.
FY1999
Actuals
FY2000
Estimate
FY 2001
Request
                12
                           Assessments
                                           Grants
                               21
                           Assessments
                               1
                           List
Baseline:    Environmental data are collected by ORD scientists and engineers and maintained in searchable
            databases for the benefit of researchers and managers within the Agency. In general such data
            are not available beyond the group of those who collected or produced it  ORD's Science
            Information Management System, the Environmental Information Management System (EMS)
            is being developed to provide a repository for descriptive information (metadata) about the data,
            models, documents, and analytical tools created or used by ORD, in an easily accessible format,
            which is not now available to the public.
                                               ¥11-43

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   Research

Verification and Validation of Performance Measures

Performance Measure:  The Agency's Risk Assessment Forum will develop technical issue
papers and develop a framework for preparing cumulative risk assessments.

Performance Database:  Output

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A


Performance Measure:  The Agency's Risk Assessment Forum will develop guidance on
determining management objectives and selecting assessment endpoints for ecological risk
assessment.

Performance Database:  Output

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A
                                     VH-44

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Coordination with Other Agencies

   EPA is working closely with several Federal agencies in the implementation of the BMP ACT
program. Collaboration with these Federal agencies is critical to achieving EMPACTs goal of
building capacity in BMP ACT metropolitan areas to sustain collection, delivery and accessibility of
time relevant environmental monitoring data that is useful to day-to-day decision-making. EPA's
Federal partners in the  BMP ACT Program, US  Geological Survey  (USGS), and National
Oceanographic and Atmospheric Administration (NOAA), as well as the Department of Energy
(DOE), have significant expertise in the collection, and management of real-time environmental
monitoring data. EPA is working closely with these agencies to leverage their experience and
expertise in providing accurate, real-time environmental information to the general public.

   To help EPA meet EMPACTs goal of facilitating the translation and delivery of environmental
monitoring data into useful information that BMP ACT communities can use to make daily decisions,
EPA is also collaborating with the Department of Housing and Urban Development (HUD). EPA
and HUD are working in partnership on several pilot projects that focus on joint agency use of tools
for communication of environmental information hi urban areas,

   EPA is also collaborating with the Federal Geographic Data Committee (FGDC) to develop
common information standards and an information management policy for the EMPACT program
that will ensure data consistency among all EMP ACT data providers.

   Finally, EPA is working closely with  the National Partnership for Reinventing Government
(NPR) on the development of EMPACTs national survey to identify local environmental priorities
in EMPACT metropolitan areas across the country, and to facilitate collaboration with other Federal
programs and initiatives relevant to the goals and objectives of the EMPACT Program. This
partnership will help EMPACT to eliminate duplication, cut through red tape, and better coordinate
Federal funding.
   Research

   In developing health assessments for the IRIS data base, EPA interacts frequently with other
Federal agencies involved hi health assessments and research. In the initial drafting, documents such
as "Toxicological Profiles" produced by HHS/ATSDR are routinely consulted for information.
Assessments and research findings from the Food and Drug Administration, National Toxicology
Program, NationalInstitute of Environmental Health Sciences, and the National Library of Medicine
are other examples of sources consulted and utilized. Federal agencies are also consulted for peer
review of draft IRIS assessments. Finally, the IRIS web site has electronic links to other agencies'
web sites for the education and convenience of the IRIS user.
                                        VII-45

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Statutory Authorities




Federal Advisory Committee Act




Comprehensive Environmental Response, Compensation, and Liability Act




Clean Air Act (CAA) and amendments




Clean Water Act (CWA) and amendments




Environmental Research, Development, and Demonstration Act (ERDDA) of 1981




Toxic Substance Control Act (TSCA)




Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)




Food Quality Protection Act (FQPA)




Safe Drinking Water Act (SDWA) and amendments




Federal Food, Drug and Cosmetic Act (FFDCA)




CPRKAofl986




Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)




Superfund Amendments and Reauthorization Act (SARA)
                                     VII-46

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Goal 8: Sound Science

-------
Environmental Protection Agency
2001 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	VTII-1
        Research for Ecosystem Assessment and Restoration	 VIII-9
        Research for Human Health Risk Assessment	 VIH-19
        Emerging Risk Issues	 VIH-29
        Pollution Prevention andNew Technology  	  VHI-38
        Increase Use of Integrated, Holistic, Partnership Approaches	 VTfl-47
        Increase Opportunities for Sector Based Approaches	 VHI-50
        Regional Enhancement of Ability to Quantify Environmental Outcomes 	 VIII-55
        Science Advisory Board Peer Review	 VUI-57
        Incorporate Innovative Approaches to Environmental Management  	 VHI-60

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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

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

Goal 08

Qbj. 01

Obj. 02

Obj. 03

Obj, 04


Obj. 06

Obj. 07

Obj. OS

Obj. 09
Obj. 10



Sound Science, Improved
Understanding of Env. Risk and
Research for Ecosystem Assessment
and Restoration
Research for Human Health Risk
Assessment
Research to Detect Emerging Risk
Issues
Pollution Prevention and New
Technology for Environmental
Protections
Increase Use of Integrated, Holistic,
Partnership Approaches
Increase Opportunities for Sector
Based Approaches
Regional Enhancement of Ability to
Quantify Environmental Outcomes
Science Advisory Board Peer Review
Incorporate Innovative Approaches to
Environmental Management
Total Workyears
FY1999
Enacted
$334,507.9

$110,540.6

$49,902.0

$54,935.7

$68,385.2


$16,706.6

$20,762.2

$6,732.0

$2,486.7
$4,056.9

1,200.7
FY2000
Enacted
$330,510.3

$120,401.8

$53,678.0

$46,106.5

$68,172.4


$9,286.8

$19,703.4

$6,089.0

$2,861.7
$4,210.7

1,057.5
FY 2001 FY 2001 Req. v.
Request FY 2000 Ena.
$328,757.7

$115,130.3

$58,324.7

$54,357.3

$52,564.4


$17,088.5

$15,921.3

$7,756.8

$2,674.0
$4,940.4

1,048.6
($1,752.6)

($5,271.5)

$4,646.7

$8,250.8

($15,608.0)


$7,801.7

($3,782.1)

$1,667.8

($187.7)
$729.7

(8.9)
Background and Context

      One element of EPA's "purpose" as stated in its Strategic Plan is to ensure that "National
efforts to reduce environmental risk are based on the best available scientific information." Science
                                       vin-i

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allows us to identify the most important sources of risk to human health and the environment, and
thereby  guides our priorities,  policies, and deployment  of resources.   Science provides the
understanding and technologies needed to detect, abate, and avoid environmental problems.  It is
critical that research and scientific assessment be integrated with EPA's policy and regulatory
activities.   In the future, environmental problems will be dealt with using those features of the
current system that have proven effective and by designing and testing fundamentally new tools and
approaches that utilize the latest advances hi scientific knowledge and technology. We will use the
latest advances in scientific knowledge and technology to  expand the  number and variety of
approaches for environmental protection.
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
internal and external, and uses several deliberative steps in planning its research programs.  As a
starting point, the Agency draws input from the EPA Strategic Plan, available research plans, EPA
program offices and regions, Federal research partners, and outside peer advisory bodies such as the
Science Advisory Board (SAB) and others.  This input is used internally by cross-office teams that
prioritize research  areas using risk and other factors such as National Science and Technology
Council (NSTC) research  and  development priorities, client office priorities, court orders and
legislative mandates. EPA's research program will increase our understanding of environmental
processes and our capability to assess environmental risks - not only to human health, but also to
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 estuaries 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  hi the
estuaries of the U.S. Due to differences hi 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. By the end of 2001, the
methods, designs and summary of existing monitoring programs will be hi place to develop the
baseline required to address these weaknesses. This work is an important step toward providing the
scientific understanding to measure, model, maintain, or restore, at multiple scales, the integrity and
sustainability of ecosystems.

       In order to improve the scientific basis  to  identify, characterize, assess, and  manage
environmental exposures that pose the greatest  health risks to the American  public,  EPA is
committed to developing and  verifying  innovative  methods and  models for  assessing the

                                         VIII-2

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susceptibilities of populations to environmental agents, aimed at enhancing current risk assessment
and management strategies and guidance. The Agency will develop initial measurements, methods,
and models to evaluate exposures and effects  of environmental contaminants,  particularly in
children. Many of the current human health risk assessment methods, models, and data bases are
based on environmental risks for adults.  The  goal of this research is to address the  risks of
environmental contaminants in 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 environmental protection requires a continuing, vigilant search for
emerging issues to protect both human and ecosystem health.  The Agency will continue  to strive
to establish research capability and mechanisms  to anticipate and identify environmental or other
changes that may portend future risk.  EPA is currently attempting to focus some of its planning
processes and research more expansively on the future. EPA is currently investigating with the help
of the National Academy for Public Administration (NAP A) a number of futures methodologies for
their potential use in strategic, multi-year, and annual planning efforts.  Benefits will include an
improved framework for decision-making, increased ability to anticipate and perhaps deter serious
environmental risks, and enhanced communication with the public and other stakeholders.

       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,
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. The Agency is accumulating data on performance and costs of
environmental pollution prevention and control technologies which will serve as a basis for EPA as
well as other organizations to evaluate  and compare effectiveness and costs of technologies
developed within and outside the Agency.

       EPA's strategy  for solving environmental problems  and improving  our system  of
environmental protection includes developing,implementmgand institutionalizmgnewpolicy tools,
collaborative community-based and sector-based strategies, and the capacity to experiment and test
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. For example, EPA's Permit Action Plan
outlines a broad strategy for building the next generation of environmental permitting. This strategy
will harmonize requirements across media and will make permitting more accessible to the public
and more flexible for facilities.

       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.

                                         VIII-3

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       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. The experience gained in working
with six industry sectors on the Common Sense Initiative provides the basis for moving forward with
sector-based approaches to environmental protection.

       Sustainable industry programs serve as incubators and developers of innovative approaches
to envrronmentalpolicy-makingjtestingalternativeregulatory and programmatic approaches through
regional projects, and multi-stakeholder processes.

       Project XL provides regulated entities a gateway to work with EPA, its co-regulators, and
other stakeholders to develop and implement alternative environmental management strategies that
achieve superior environmental performance in exchange for regulatory flexibility. These initiatives
offer a balance between the uncertainty in testing promising new approaches and safeguards to
ensure the protection of human health and the environment.  These pilots, if successful, will be
integrated into our system of environmental protection. Sector-based and facility-based approaches
will offer valuable supplements to traditional media-specific environmental policy and, along with
place-based and pollutant-based approaches, offer a menu of solutions to environmental issues.

Strategic Objectives and FY 2001 Annual Performance Goals

Objective 01: Research for Ecosystem Assessment and Restoration

•      Establish baseline conditions from which changes, and ultimately trends,  in the ecological
       condition of the Nation's estuaries can be confidently documented, and from which the
       results of environmental management policies can be evaluated at regional scales.

Objective 02: Research for Human Health Risk Assessment

Objective 03: Research to Detect Emerging Risk Issues

Objective 04: Pollution Prevention and New Technology for Environmental Protections

•      Develop, evaluate, and  deliver technologies and approaches that eliminate,  minimize, or
       control high risk pollutants from multiple sectors. Emphasis will be placed on preventive
       approaches  for  industries  and  communities  having  difficulty  meeting
       control/emission/effluent standards.

Objective 06: Increase Use of Integrated, Holistic, Partnership Approaches
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Objective 07:  Increase Opportunities for Sector Based Approaches

       EPA will develop the next phase program for identifying, implementing & evaluating pilot
       projects based on the Project XL pilot program.

Objective 08:  Regional Enhancement of Ability to Quantify Environmental Outcomes

Objective 09: Science Advisory Board Peer Review

Objective 10:  Incorporate Innovative Approaches to Environmental Management
Highlights
Research for Ecosystem Assessment and Restoration

       In order to balance the growth of human activity and the need to protect the environment, it
is important to understand the current condition of ecosystems, what stressors are changing that
condition, what are the effects of those changes, and what can be done to prevent, mitigate, or adapt
to those changes. By the end of 2001, EPA will establish baseline conditions from which changes,
and ultimately trends, in the ecological condition of the Nation's estuaries can be confidently
documented, and from which the results of environmental management policies can be evaluated at
regional scales.  As part of this effort, EPA will issue a report describing the condition of the
Nation's  estuaries.  This report will provide EPA with information needed to determine existing
conditions and to develop baseline information from which we can demonstrate the success of
watershed management policies.

Research for Human Health Risk Assessment

       An important aim of human  health research in 2001  will  be development of initial
measurements,  methods and models to evaluate exposures and  effects of environmental
contaminants, particularly in children.  The Agency will continue to support a children's research
program specifically targeted to address major areas of uncertainty and susceptibility. An important
element of the program is the children's research centers. These nine university-based research
centers explore a range of children's risk issues, including childhood asthma and development
disorders. Other children's research focus on data gaps and endocrine disrupters. A major product
of this research in 2001 will be guidance on improving pharmacokinetic model usage for children.
The research undertaken in this goal supports the ongoing efforts of the Interagency President's Task
Force on Environmental Health Risks and Safety Risks to Children.

Research to Detect Emerging Risk Issues

       In recent years, EPA has begun moving beyond environmental regulation to environmental
protection hi its broadest sense, including anticipating and preventing problems before they
mushroom into major concerns. In FY 2001, research will focus on improving our understanding

                                        VIII-5

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of the impact on human health and the  environment of exposure to potential environmental
pollutants and developing approaches to reduce human health and ecological risks. This research will
result in accessible, common methodologies for combined human health and ecological risk
assessments, and sound approaches for risk management so that decision-makers will have the
integrated view of risk needed to make intelligent decisions.

Pollution Prevention and New Technology for Environmental Protections

       EPA supports pollution prevention (P2) as a necessary and logical strategy for dealing with
high-risk human health and environmental problems that are addressed by Federal, environmental,
and health, and safety regulations.  P2 research will test the ability of risk assessors and risk
managers to develop tools and methodologies which are meaningful and understandable to the public
in terms of the costs and benefits associated with the magnitude of the risk that is identified. In the
area of new technologies, the Agency also looks to test the performance of commercial-ready
technologies through its Environmental Technology Verification (ETV) program. With broad
support from industry and other Federal partners, the ETV program will continue to verify the
environmental performance characteristics of technologies in all media (e.g., industrial pollution
prevention, recycling and waste treatment;  field monitoring technologies; and air pollution control
and greenhouse gas reduction technologies) under its twelve pilots.  In FY 2001, the Agency will
deliver a report to Congress on the status and effectiveness of the ETV program during its first five
years.

       A cornerstone of EPA's ability to collect, manage and provide access to information is a
strong commitment to data quality, which is a key foundation in the work of the Information Office.
Building on the initial work in EPA's Data Quality Action Plan, we will work to create a more
comprehensive and clear understanding of data quality, and its application to our environmental and
public health mission.  Creating this understanding will be an early focus of the Information Office
and it's Quality Staff.   We will use a Quality Board which will have broad responsibility for
leadership, coordination, and oversight of issues related to quality. The Board, which will be
supported by a full-time staff, will serve as the EPA focus for ensuring that data quality policies are
developed and implemented in EPA programs and applied throughout the life cycle of information
that EPA generates and uses.

Increased Community-Based Approaches

       In 2001, EPA will continue to strengthen local partnerships to address serious environmental
risks to human health and ecosystems.  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. The work targets specific environmental problems identified as high
risks to human health and ecosystems, which are  not adequately addressed by other Agency
resources.
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Increased Facility and Sector-Based Strategies

       EPA's strategy for improving our system of environmental protection is to pilot innovative
approaches designed to achieve better protection at less cost and, if successful, integrate those pilots
into our core practices. Through Project XL, the Agency has a number of innovative ideas that are
being tested or implemented in various environmental programs that will lead to changes in rules,
permits,  information  management,  environmental  stewardship, enforcement  and compliance
assurance, stakeholder involvement and Agency culture. For example, in XL, EPA is testing ways
to streamline permitting so manufacturers can respond more quickly to market demands. In another
XL project, EPA is testing alternative ways to implement air regulations to encourage downtown
redevelopment and reduce the pressure for sprawl.

       A sector-based approach to solving environmental issues complements EPA's analytic
toolbox,  including community-based, pollutant-based,  and traditional media-based approaches.
Sector approaches can be used to solve environmental issues as a sole approach, or can be used to
complement other approaches to focus on a particular source of a particular pollutant in a particular
ecosystem. By using these approaches togetherto target Agency efforts, focused results are achieved
in the most cost-effective and efficient manner possible. By utilizing a  sector approach in a
collaborative manner, one can garner the information and resources to deal with 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.  Sustainable industry programs serve as incubators and
developers of innovative approachesto environmental policy-making, and test alternative regulatory
and programmatic approaches through regional projects and multi-stakeholder processes.

Science Advisory Board Peer Review and Consultations

       The Agency will continue to support the activities, principally peer reviews, of the Science
Advisory Board  (SAB), which provides independent 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 agenda of SAB activities is derived from requests from Congress and the Agency, as
well as some self-initiated activities aimed at highlighting attention to areas of concern that may
have escaped Agency attention or may be incompletely addressed by individual Agency office
programs.

       The SAB's broad objective is to help the Agency 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.
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       The use of the SAB for peer reviews also supports the Agency-wide commitment to sound
science based on rigorous peer-review, a commitment that has been re-emphasized as a result of
GAO findings in 1997 that such efforts are applied unevenly within the Agency. In addition, the
SAB's activities provide the kind of support described in the 1999 National Academy of Sciences
report, "Evaluating Federal Research Programs: Research and the Government Performance and
Results Act", which concludes that the most effective way of evaluating a federal research program
is by expert review, which includes quality review, relevance review, and benchmarking.

External Factors
       Sound science is  predicated  on the  desire of the  Agency to make human health and
environmental decisions based on sound scientific data and information. It challenges the Agency
to 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 to both human health  and the
environment. As long as  sound science is a central tenant for actions taken by the Agency, then
external factors will have a minimal impact on the goal.

       The new Office of Policy and Reinvention will lead the Agency's work to explore legislative
actions that could strengthen, expedite and stimulate innovative "second generation" approaches to
environmental protection.
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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

           Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems


Objective # 1:  Research for Ecosystem Assessment and Restoration

       By 2008, provide the scientific understanding to measure, model, maintain, or restore, at
multiple scales, the integrity and sustainability of ecosystems now and in the future.
                                   Resource Summary
                                   (Dollars in thousands)
                                         FY1999
                                         Enacted
           FY 2000
           Enacted
            FY 2001    FY 2001 Req. v.
            Request     FYZOOOEna.
Research for Ecosystem Assessment and
Restoration

    Environmental Program & Management

    Science & Technology

       Total Workyears
$110,540.6
$120,401.8
     $0.0       $8,318.3

$110,540.6     $112,083.5

    439.1         344.6
$115,1303
($5,271.5)
               $9,026.0        $707.7

             $106,104.3      ($5,979.2)

                 339.3          (5.3)
                                      Key Programs
                                   (Dollars in thousands)

CWAP - Related Research
Coastal Environmental Monitoring
Environmental Monitoring and Assessment Program, EMAP
Rent, Utilities and Security
Administrative Services
FY1999
Enacted
$1,406.0
$0.0
$33,153.5
$0.0
$0.0
FY2000
Enacted
$4,440.6
$6,954.0
$30,543.5
$6,754.5
$1,426.2
FY2001
Request
$5,298.7
$7,255.4
$30,157.8
$7,508.7
$1,517.3
                                          VIII-9

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FY 2001 Request

      Natural ecosystems provide valuable services and resources to the public, such as air and
water purification, flood control, raw materials for manufacturing and industrial processes, food, as
well as less tangible benefits such as recreation. Many human activities alter or damage ecosystems
and their ability to provide these goods and services.  In order to balance the growth of human
activity and the need to protect the environment, it is important to understand the current condition
of ecosystems, what stressors are changing that condition, what are the consequences of those
changes, and what can be done to prevent, mitigate, or adapt to those changes. Within this context,
it is the goal of the EPA's ecological research program to provide the scientific understanding
required  to  measure,  model,  maintain  and/or  restore,  at multiple scales, the integrity  and
sustainability of ecosystems now, and in the future. EPA has four primary areas of emphasis within
this objective: 1) ecological monitoring research; 2) ecological process and modeling research; 3)
ecological risk assessment research; and 4) ecological risk management and restoration research.

Ecological Monitoring Research

      Ecological monitoring research addresses the question, "What is the current condition of the
environment, and what stressors are most closely associated with that condition?" The benefits of
establishing the condition of an ecosystem are to provide: 1) a standardized set of information from
which the magnitude and  extent of problems can be assessed and prioritized  for research and
improvement; 2) an improved understanding of the relationship among stressors and the condition
of the resources; and 3) a baseline from which we can determine whether policies (national, regional,
and/or local) are having the desired effect.

      Highlights of EPA's  monitoring research include the  Environmental Monitoring &
Assessment Program (EMAP) and the coastal monitoring program. EMAP develops the science of
monitoring that is required to implement the Committee on Environment and Natural Resources
(CENR) National Monitoring Framework, and to develop EPA's capability to measure  trends in
environmental health, especially the health of freshwater and marine ecosystems. In FY 2001, the
Western EMAP study will be a primary activity of EPA's monitoring research. The western study
has four areas of focus: 1) the landscape atlas for western states; 2)  the intensive study of three
watersheds (Columbia  River, Missouri River,  and San  Francisco Bay delta area); 3) coastal
monitoring; and 4) surface water indicator development. Of equal importance in FY 2001 will be
the second year of the national coastal monitoring program. The purpose of this study is to verify
the feasibility of such a program for defining the condition of the estuarine environment, nationally
and regionally, cost-effectively and cooperatively with multiple agencies and states. This will also
be a key year of reporting on the data obtained in the Eastern Surveys, analyzing these findings and
releasing information on the applicability of indicators from studies conducted by EPA.

      In FY 2001, EPA will establish baseline conditions from which changes, and ultimately
trends, in the ecological condition of the Nation's estuaries can be confidently documented. This
is essential to the achievement of this objective as it determines not only the baseline from which

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we can measure our success or failure at sustaining ecosystems, but is also the type of information
required to help us prioritize where research and management funding is best invested, and to assist
in the formation of hypotheses for further research and modeling.

      The EnvironmentallndicatorsmtheEstuarineEnvironmentResearchProgram (EPA, NASA)
will continue as part of the Science To Achieve Results (STAR) research grants program. This four
year program, begun in 2000, is designed to identify, evaluate, recommend and potentially develop
a suite of new, integrative indicators of ecological condition, integrity, and/or sustainability that can
be incorporated into long-term monitoring programs. STAR will also continue to sponsor research
grants on the development of national aquatic ecosystem classifications and reference conditions.
This research will lead to more rigorous and defensible biocriteria for assessing the condition of
aquatic resources and for evaluating the effectiveness of management actions to control point and
nonpoint source pollution.

Ecological Process and Modeling Research

      Process and modeling research addresses the question, "What are the 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. Thismodeling 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 accurately achieve the environmental
protection goals they seek.

      In recent years, various ecological monitoring and assessment tools designed to indicate the
general  health of our nation's ecological resources have been developed which are applicable to
evaluating ecological conditions of various systems on various spatial scales. While these tools and
databases provide  an essential foundation for measuring our  success in the environmental
management arena, implementing them in all areas and for all systems  would be prohibitively costly
and tune consuming, and would not necessarily provide solutions for correcting problems. EPA's
ecological process and modeling program addresses two  needs:  1) packaging the ecological
monitoring and assessment knowledge gained over the past few years in the form of quantitative
modeling systems capable of extending those manual assessments to  new areas in a rapid and cost-
effective way; and 2) utilizing those modeling systems to evaluate various arrays of possible options
for correcting the predicted current or future ecological insults.

      The modeling system under development (Multimedia Integrated Modeling System, or
MIMS) is a comprehensive, multimedia system capable of providing the watershed and regional
manager with  a tool to determine the optimal, practical, and/or most effective alternatives for
managing surface waters by considering the combined insults originating from air, surface water,
ground water and terrestrial transport routes, habitat destruction, and landscape change. MIMS will
grant the user community rapid access to a very large array of information and automated analysis

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tools in a format readily suited to the evaluation of action priorities and abatement options. This
work is the foundation for addressing the future integrity and sustainability of our ecosystems.
Without models, there is no ability to project changes before they occur such that we may be able
to avoid unintended consequences from our management actions.

Risk Assessment Research

       Risk assessment research addresses the question, "What is the risk posed to ecosystems by
stressors, alone and in combination, now and hi the future?" Ecological assessments can link
stressors  with consequences and evaluate the potential for  damage to  particular ecosystems.
Ecological assessments can also be used to compare the relative risks associated  with different
stressors, different regional  areas,  and different ecosystems.   This is a  valuable  tool for
environmental risk managers at local, state and federal levels, enabling them to link high priority
ecosystems with ecosystems at high risk. Ecological assessment research supports Agency efforts
to incorporate science into  environmental decision-making  both  within the Agency and in
community-based initiatives through: 1) development and validation of methods and guidelines for
assessing risk to aquatic and terrestrial ecosystems; 2) the application of Agency-wide ecological
risk assessment guidelines by field validation through integrating risk assessment projects; and 3)
development of guidanceon ecological assessment issues to clearly communicate assessment results
to risk managers.

       In 1989, concurrent with the beginning of EMAP, EPA in partnership with other Federal and
State agencies, as well as academia, began the development of a process, known as the Mid-Atlantic
Integrated Assessment (MAIA), to provide integrated environmentelassessmentinformationas input
into future environmentalpolicy decisions. Ten years of representative regional monitoring provided
by EMAP have produced  several interim assessment products which are already being utilized by
decision-makers. Thesereportsinclude: An EcologicalAssessment of'the UntiedStates Mid-Atlantic
Region: a Landscape Atlas (1998) and The Condition of the Mid-Atlantic Estuaries (1999). Plans
and initial analyses for a cross-resource Mid-Atlantic State of the Region report are underway with
an initial draft expected in F Y 2000.

       Following the completion of the first phase of EMAP in the Mid-Atlantic region and
establishment of baseline information on the current status of most resources in the region, EPA has
initiated a new research project that will build on  EMAP  and other  data to project future
environmental conditions in the region so that risk management activities can be targeted in a
proactive manner. The Regional Vulnerability Assessment (ReVA) project, begun as part of EPA's
FY 2000 initiative for the National Science and Technology  Council's cross-Agency Intepated
Science for Ecosystem Challenges (ISEC), will continue in F Y 2001. ReVA will combine modeled
projections of changes in stresses (e.g., pollution deposition, land use change) with information on
sensitive ecosystems in order to identify: 1) the greatest environmental risks that are likely to occur
in the next 5-25 years; and 2) where those risks are likely to occur. ReVA will also integrate socio-
economics into the analyses to identify factors driving changes in environmental condition and to
better communicate trade-offs associated with alternative policy decisions. Much of the research

                                        VHI-12

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that will contribute to ReVA is already underway and, in FY 2001, EPA will deliver a draft report
on the assessment of vulnerabilities of streams within the Mid-Atlantic region. Given that we will
not protect every ecosystem, everywhere, at all times, examining resources and their vulnerability
at this larger scale  will greatly assist hi identifying ecologically important features of the region
which merit special consideration by all managers (local, regional, or national). This scale of
consideration is necessary for meeting our objective of sustainable ecosystems.

Risk Management and Restoration Research

      Risk  management and restoration research addresses the  question, "What options  are
available to manage the risk to, or to restore, degraded ecosystems?"  Given the rate of development
of the man-made environment, there is a need to develop cost-effective prevention, control, and
remediation approaches for sources of stressors, and adaptation approaches for ecosystems. Cost-
effective stressor reduction  may not always be feasible or practical as a means  to reduce risks.
Therefore, it is also  important to invest in restoration technologies to diagnose ecosystem restoration
needs, evaluate progress toward restoration, and establish ecologically relevant goals and decision
Support systems for state and community planners.

      Many states and natural resource agencies are implementing the Clean Water Action Plan's
call for water quality improvements by promoting riparian zone restoration.   In many cases,
substantialresourees are being devoted to developing and implementing watershed restorationaction
strategies. The primary focus in FY 2001 for EPA's ecosystem restoration work will be field
experiments on the aquatic stressor reduction effectiveness of riparian buffers in the Mid-Atlantic
region and the evaluation of their ecological benefits, including their contributions to habitats and
the linkages  of terrestrial and aquatic habitats. These critical experiments and careful analyses of
other ongoing work will provide the scientific bases for further policy initiatives that accelerate or
refine the  practice. Another focus in FY 2001 will be the  more general  problem of inferring
restoration needs and priorities from biological status and trends measurements.  EPA expects to
produce a framework for diagnosing ecosystem restoration needs from biological measurements. In
time, the framework can be tested and implemented in the western EMAP study and other regional
efforts to produce measurable performance data under GPRA.

      The ecosystems protection research program is also supported through the  Agency's
Postdoctoral Initiative. The F Y 2001 request is the third year of the effort to enhance our intramural
research program by supporting 13.4 additional postdoctoral positions under this  objective. This
enhancement continues to build upon the positive response by the academic  community to EPA's
announcement of 50 postdoctoral positions for FY 1999.
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FY 2001 Change from FY 2000 Enacted

S&T

•      (+$2,443,790, +2,1 FTE) This enhancement to the ecosystem protection STAR pants
       program will support requests for applications in the following areas: water and watersheds
       research, integrated ecosystem modeling, and development of the next  generation of
       ecological indicators to support the Agency's monitoring program, as well as regional
       ecological assessments.

       (-$7,641,100)  The 2001 request is $7,641,100 belowthe 2000 Enacted budget level due to
       Congressional earmarks received during the appropriations process that are not part of the
       2001 President's Request

•      (-$683,400) This reduction in resources will  decrease the level of effort for lower priority
       research on ecological processes and effects modeling to determine the ecological effects of
       atmospheric stresses and their regional extent, as well as for the west-wide stream survey.
       This reduction will not impact achievement of FY 2001 performance goals and measures.


Annual Performance Goals and Performance Measures

Estuarine Ecosystem Conditions

In 2001     Establish baseline conditions from which changes, and ultimately trends, in the ecological
           condition of  the Nation's estuaries can be confidently documented, and from which the
           results of environmental management policies can be evaluated at regional scales.

In2001     Completed 1) three articles on benthic and water quality indicators in estuaries, 2) ecological
           indicator evaluation guideline document, 3) databases of 30 landscape indicators, 4) article
           on the relationships between stream and landscape conditions, and 5) a draft large rivers
           logistics manual.

In 2000     Report on monitoring findings in the Mid-Atlantic Region as a cost effective means of
           measuring the condition of these systems.

In 2000     Develop monitoring designs, including indicators, for streams in western watershed.

In 2000     Develop monitoring designs for National coastal monitoring.

Performance Measures:                            FY 1999       FY 2000       FY 2001
                                               Actuals        Estimate       Request

Provide baseline landscape indicators for
the Mid-Atlantic Region.

Reports on benthic and water quality


                                           Vffl-14

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indicators of condition in estuaries.

Publish an analysis of the trends in
atmospheric deposition and aquatic effects.

Publish Mid-Atlantic region stressor
profiles for ozone, acid deposition,
pesticides, nitrogen and other stressors.

A final report on the extent and magnitude of fish
tissue contamination in small, wadeable
streams in the Mid-Atlantic Region as
means of identifying high risk areas.                                    1                           final report

Draft design for a National coastal monitoring program
to assess the biological condition of estuaries                            1                           draft design

Final report on the relationship between macroinvertebrate
 & periphyton assemblages & chemical & physical
stressors to verify the applicability of these biological
indicators in the Mid-Atlantic.                                          1                           report

Refined coastal health indicators developed and applied
in salt marsh estuaries and  near
coastal water of the Gulf and South Atlantic.                             09/3 0/2000                  indicators

Develop a final work plan  for western
stream condition monitoring.                                           09/30/2000

Report describing the condition
of the Nation's Estuaries.                                                               1           report

Baseline:   Currently, there is a patchwork of monitoring underway in the estuaries of the U.S.  Due to
            differences in objectives, methods, monitoring designs and needs, these data cannot be combined
            to estimate, with known confidence, the magnitude or extent of improvement or degradation
            regionally or nationally in this economically critical resource. Therefore, it is also not possible
            to demonstrate the success or failure of increasingly flexible watershed management policies,
            regionally and nationally.  By the end of 2001, the methods,  designs and summary of existing
            attempts will  be in place to develop the baseline required to address these weaknesses.

Integrated Ecosystem Modeling

In 2002     Publish a proposed modeling system, a regionally applicable conceptual model and modeling
            research strategy for developing watershed management models

In 2000     Publish a conceptual model for developing watershed assessment techniques that  would assist
            local, regional, and national environmental decisionmakers in maintaining the ecological integrity
            of the watershed.

Performance Measures:                                FY1999        FY2000        FY2001
                                                     Actuals         Estimate        Request
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Peer-reviewed draft TMDL Implementation Protocol/
Prototype approach for estimating loadings of
sediments to be used by OW, Regions, Tribal
Governments, and States in implementation
of CWA S.303.

Release of multimedia wildlife exposure assessment
model which consists of a computer friendly
system to assess and integrate exposures of
wildlife to env. contaminants in soil,water,food,and air

Develop expanded guidance for performing an
ecological risk assessment; conduct a series
of colloquia and a workshop on ecological
assessment  issues

Final report on relationships between wetland
extent and land-use patterns with stream water
quality and  biotic communities in watersheds
of the Lake Superior basin.
                                           protocol
                                           model
                09/30/2000
                            guidance
                1
                            report
Baseline:    Currently the models to help watershed mangers forecast the response of lakes, streams, rivers and
            estuaries to alternative management options are inadequate. Further, few models can be credibly
            linked to conduct multimedia evaluations (e.g. would Nitrogen removal from air be equal to the
            Nitrogen removal from agriculture?) due to many differences in modeling systems employed. By
            2001, the potential for a new modeling system can be evaluated for its use to link existing and
            future models to improve the forecasting of alternative watershed management options.  If
            successful, it will revolutionize the ecological modeling field for environmental managers.

Regional Scale Ecosystem Assessment Methods

In 2001     Develop methods  for  regional scale,  comparative  risk/vulnerability assessment  using the
            Mid-Atlantic Region as  a case study.

In 1999     Completed an ecological risk assessement guidelines follow-on project report, as well as two
            watershed assessment studies.
Performance Measures:
Ecological risk assessment guidelines
follow-on project report.

Report to CENR on use of Ecological Risk
Assessment in the Federal Government.

Development and use of ecological
information management system.

Final report and data base on landscape change in the
Mid-Atlantic states between the early 1970s and
the early 1990s, based on remotely sensed
FY 1999
Actuals
FY2000
Estimate
FY2001
Request
                                                  VIII-16

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monitoring data, and the consequences for water quality                                1           report, database

Estimating Vulnerability of Streams and Ground
Water to Sediments, Nutrients, Pesticides, and
Toxic Substances: Applying Landscape Assessment
Tools to the Mid Atlantic Coastal Plain.                                             1           journal article

Develop a probability-based methodology for
conducting regional aquatic ecosystem exposure
and vulnerability assessment, for pesticides.                                          1           methodology

Provide Peer-review Publication on: The Spatial
Distribution and Trend Analysis of Sulfur and
Nitrogen Deposition in the Eastern United States.                                     1           publication

Develop a report using the Ecological Risk
Assessment Guidelines approach to conducting
an ecological risk assessment at the
regional scale: a Proof of Concept                                                 1           report

Baseline:    Improvements to ecosystem protection have been made by considering watershed scale management,
           especially for evaluating water quality. However, there is no current means (Le., assessment tools) to help
           environmental managers decide where, and on what, they should spend money—when faced on deciding
           priorities among pollutants, other stressors, ecological resources, and locations, to mention but a few
           factors.  By 2001, we will have provided the first tools to meet such a goal and improve the odds of
           getting the maximum return on the investment

Verification and Validation of Performance Measures

Coal 8 Objective 1

Performance Measure: Report describing the condition of the Nation's estuaries.

Performance Database: Output

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A
Coordination with Other Agencies
                                            VIII-17

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      Research in ecosystems protection is coordinated Government-wide through the Committee
on Environment and Natural Resources (CENR),  It is the unique mission of EPA to go beyond
resource management assigned to other agencies like NOAA's National Marine Fisheries Service,
USDA's Forest Service, and DOI's Fish and Wildlife Service and Bureau of Land Management, and
to protect the whole environment, accounting for both  public and private sources of adverse
ecological effects. EPA has been an active participant in the CENR, and all work in this objective
is fully consistent and complementary with other Committee member activities.

      EPA researchers work within the CENR on EMAP and other ecosystems protection research.
The  Mid-Atlantic Landscape Atlas was  developed  in cooperation  with NOAA,  USFW, the
University of Tennessee, and the U.S. Department of Energy's  (DOE's) Oak Ridge National
Laboratory. Development of the Multimedia Integrated Modeling System is coordinated with the
Department of Defense (DOD) Corps of Engineers, USD A, and DOE. EPA participates hi the
Integrated Sciences for Ecosystem Challenges initiative formulated by CENR's Subcommittee on
Ecological Systems, where the Agency participates in restoration of habitats and species, impacts
of landscape change, invasive species, and inventory and monitoring programs.  EPA is also
represented on the Interagency Working Group on the Water Cycle, which is developing a research
strategy and scientific plan for investigating the global water cycle.

      EPA also  participates in the interageney Water and Watersheds research grants program.
This program is co-sponsored by  EPA, the National Science Foundation, and USD A. Integrating
the physical, biological and social sciences, this  research is focused on developing watershed
assessment and restoration approaches and decision tools that will assist resource managers in
making decisions based on sound science. Additional interageney grants programs in Ecology
include the Coastal Index Sites Network (CISNet), co-sponsored with NOAA and NASA, and the
Ecology and Oceanography of Harmful Algal Blooms (EcoHAB) program with NOAA, NSF, DOD,
and NASA.

      EPA's STAR program also participates in the interageney Water and Watersheds research
grants program.  This program is co-sponsored by EPA, the National Science Foundation, and
USDA,  Integrating the physical, biological and social sciences, this research is focused on
developing watershed assessment and restoration  approaches and decision tools that will assist
resource managers in making decisions based on sound science.

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-18

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                         Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

Provide Sound Science to Improve Understanding of Environmental Risk and Develop and
   Implement Innovative Approaches for Current and Future Environmental Problems


Objective #2: Research for Human Health Risk Assessment

      Provide the scientific basis for responding to a wide range of environmentally-driven human
health problems by developing methods, models, and data that have broad applicability.
                                Resource Summary
                               (Dollars in thousands)

Research for Human Health Risk Assessment
Environmental Program & Management
Science & Technology
Total Workyears
FY 1999
Enacted
$49,902.0
$18.8
$49,883.2
225.5
FY 2000
Enacted
$53,678.0
$4,541.1
$49,136.9
193.4
FY 2001 FY 2001 Req. v.
Request FY 2000 Ena.
$58^24.7
$4,948.2
$53,376.5
182.8
$4,646.7
$407.1
$4,239.6
(10.6)
                                  Key Programs
                               (Dollars in thousands)

Endocrine Disrupter Research
Human Health Research
Rent, Utilities and Security
Administrative Services
FY1999
Enacted
$0.0
$49,652.2
$0.0
$0.0
FY2000
Enacted
$379.3
$48,883.9
$9,651.7
$606.1
FY2001
Request
$387.9
$52,998.6
$4,258.7
$644.3
                                     VHI-19

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FY 2001 Request

       During much of its history, EPA has focused its human health risk management decisions and
regulations on single environmental pathways and individual contaminants. Often, this approach
has been mandated by  environmental  legislation.   In  recent years, advances in  the state of
environmental science have illustrated that new risk assessment methods are needed to investigate
complex environmental and human health issues that were not contemplated by early environmental
legislation. These advances illustrate the significance of new risk management options for EPA—
replacing, as appropriate, the "one-size-fits-all" approach to risk management with a  more
population/geographic-specific approach where risk management options can be developed for the
general population,  specific  age  groups (e.g., infants  and children), or other  susceptible
subpopulations.
                                                  HUMAN HEALTH RESEARCH
                                                  FY 2001 Major Areas of Emphasis
                                                          (Based on extramural program)

                                                                      10.0%
                                                                                       18.2%
       Today, the practice of risk assessment
and  risk  management  helps  to  identify
scientific issues that cut across the elements of
the risk assessment paradigm (exposure, dose
response,   hazard   identification,  risk
characterization). Creating a strong scientific
foundation  for  risk  assessment  and  for
subsequent  risk  management decisions
requires research to reduce significant areas of
scientific  uncertainty and to develop  the
methods, models, and data needed to support
EP A* s scientific and regulatory programs. To
that   end,   EPA's  Human  Health  Risk
Assessment research program will continue to
pursue three main strategic directions over the
next several years:  1)  improve predictive
linkages   between  exposure  and  effects
research; 2) harmonize cancer and noncancer
risk   assessments;  and  3)  assess   the
effectiveness of environmental  decisions in
protecting public health. Moving toward these strategic directions, the Agency will continue to support
research to improve our understanding of the exposure-dose-effects continuum through development
of multimedia/multipathway models, biomarkers, and mechanistically based improvements in hazard
identification and extrapolations. In FY 2001, research will be undertaken in three key areas of activity:
1) development  of multimedia/multipathway exposure methods and models, 2) development of
mechanistically-based data, tools, and approaches, and 3) susceptible subpopulations, which will
emphasize risks to children. Following is a detailed discussion of the FY 2001 program in terms of
these three activity areas.

                                                Development of Multimedia/Multipathway Exposure Models
                                                Development of Mechanistic Data, Tools, and Approaches
                                                Susceptible Subpopulations Research (emphasizing Risks to
                                                Children)
                                          vra-20

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Multimedia/multipathway exposure methods and models

      EPA is committed to developing models  to assess, predict, and diagnose the population
distribution of multimedia/multipathway exposures to major  classes of environmental agents.  A
number of exposure related activities will be undertaken in achieving this objective. They have been
chosen to address substantial uncertainties that exist in human health risk assessment and, thereby,
improve the scientific basis for assessing and managing risks.  They include: 1) human exposure
measurement research, 2)  research to develop multipathway,  cumulative, and aggregate exposure
models and databases, 3) research on children's exposure in residential micro-environments, and 4)
research to improve risk assessment techniques, data bases, and models. This research seeks to improve
the core science in these areas by focusing on multimedia/multipathway exposures to pesticides and
other consumer products and major exposure venues, including residential.

      In F Y 2001, human exposure measurement research will  continue to develop, demonstrate, and
evaluate human exposure measurement and surveillance investigationsalongtheU.S. - Mexican Border
in conjunction with the Border XXI (NAFTA) program. Areas of emphasis for the Border program in
FY 2001  will include: 1) exposure studies that investigate children's exposure to pesticides, and 2)
studies that investigate the potential for differential exposures which may be related to contaminants
from agricultural pesticide application and other activities along the border.

      Research  on  multipathway exposure models and databases  will continue  to develop,
demonstrate, and evaluate measurement-based models that represent multipathway source-exposure-
biomarker-dose relationships and the physical and chemical factors that affect potential and absorbed
doses. Research in this area will also develop and distribute exposure measurement and activity pattern
databases.  An important area of emphasis in FY 2001 will be analysis of National Human Exposure
Assessment Survey (NHEXAS) data.  Additional analyses of the NHEXAS pilot study data will be
conducted, as will feasibility studies to demonstrate the benefits and costs of a national-scale exposure
program.

      Research on children's exposure and surveillance will focus on improving our understanding
of exposures of infants and children in residential microenvironments - particularly to pesticides and
toxic substances. More specifically, research will continue to focus on 1) improving our understanding
of the scientific relationships between exposure and the biological markers of exposure (e.g., urinary
biomarkers and irnmunoassay  techniques); and 2) developing field  measurement  and analytical
protocols. Other research focusing on children will look at integrating measurements and modeling to
investigatemultipathway, cumulative, and aggregate exposures to contaminant mixtures for infants and
children, with emphasis on micro environmental exposures that will reduce  significant uncertainties
in how and where the exposure of infants and children differ from that of the general population.

      The information developed from application of methods, models, and data developed under this
research program  may significantly improve our understanding of the extent of human exposure to
specific pesticides and toxic substances. Methods resulting from this research will be incorporated into
the Agency's battery of testing guidelines.

                                          Vffl-21

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Mechanistically-based Data. Tools, and Approaches

       The Agency faces limitations in its ability to assess health risks of environmental exposures both
qualitatively and quantitatively because of a lack of understanding about the underlying biological,
chemical, and physical processes that determine target tissue exposures and effects. Without sufficient
knowledge of these processes, uncertainties are introduced into the risk assessment process that allow
wide interpretation of what is often limited data. Research associated with this activity addresses both
qualitative (hazard identification) and quantitative (dose-response analysis) concerns associated with
current risk assessments.

       Under this research program, EPA is committed to reducing reliance on methodologies that rely
on default assumptions by providing mechanistically-based data, tools and approaches for more
quantitative and biologically defensible human health risk assessments. EPA will pursue a focused
program to reduce significant uncertainties in EPA's ability to identify and characterize health hazards,
and then quantify, model and assess exposure-dose-response relationships.

       More specifically, health effects research will continue to focus on mechanistically-based risks
and development of fundamental tools such as biomarkers of effect and susceptibility to address risks
posed by cumulative and aggregate exposures, exposure to chemical mixtures and risks to susceptible
populations (such as the elderly, children or persons predisposed to  disease).  Methods will be
developed to elucidate the critical physiologic and mechanistic factors that contribute to health effects
in laboratory animals and humans. Research to determine the effects of varying route, dose, dose-rate,
duration and cumulative dose on health outcomes will be used to develop mechanistically-based
models.  Mechanism-of-action information will improve confidence in the qualitative assessment of
hazard and also lead to hypothesis-driven research to elucidate the cascade of events linking exposure
and disease, consequently improving our ability to perform more biologically-based dose-response
estimates.

       Risk assessment research will focus on providing methodologies, prototypical assessments, and
guidance for risk assessors on the  use of information on 1) common levels of "response" for risk
assessment, 2) common dose metrics  for risk assessment, and 3) framework and guidelines  for
harmonized and integrated risk assessments.
Susceptible Subpopulations

       EPA is committed to developing and verifying innovative methods and models for assessing the
susceptibilities of populations (i.e. children and individuals with compromised immune systems) to
environmental agents, aimed at enhancing current risk assessment and management strategies and
guidance. The primary focus of this research is related to children's health and is discussed in further
detail below.
                                          VIII-22

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       Children's Health Research Program

       Research on the unique health risks of infants and children is particularly needed as suggested
by national scientific advisory organizations, the Administration, and Congress. In 1993, the National
Academy of Science (NAS) issued its report, Pesticides in the Diets of Infants and Children, which
drew attention to health effects and  exposure research needed to improve our understanding of the
impact of pesticides on children's development and overall health. Three years later, in 1996, Congress
enacted the Food Quality Protection Act (FQP A), which mandates, among other things, a single health-
based standard for all pesticides in all foods and provides special protections for infants and children.
Also in 1996, the Administrator issued a report entitled Environmental Health Threats to Children and
established a Children's Agenda for EPA, calling for consideration of children's risks in all Agency
actions and  a greater  emphasis on research to support children's risk assessments.  In 1997, the
President issued an Executive Order addressing protection of children from environmental health risks.
The  research in this objective supports the interagency  efforts of me President's Task Force  on
Environmental Health Risks and Safety Risks to Children.

       Much of the effort under the Children's program is based on the Draft ORD Strategy for
Research on Environmental Risks to Children, which provides direction for research in age-related
exposures, physiology, and biological responses that may result in increased risks, and research in risk
reduction methods.  This research will result in better EPA risk assessments for children and reduced
risks from environmental health threats. In F Y 2001, Children's Health Research will continue a strong
program to provide the data to strengthen Agency risk assessments for children, both in the near and
long term.

       EPA  began to  address environment-related childhood diseases in 1998 by establishing, in
cooperation with the National Institute of Environmental Health Sciences (NIEHS) and the Centers for
Disease Control (CDC), eightuniversity-basedpediatric environmental research centers. These Centers
conduct basic and applied research in combination with community-based prevention efforts. Their
aim is to better understand the causes of environmentally-induced disease among children and to
eventually decrease the prevalence of childhood disease. Their efforts are focused on childhood asthma
and other lung diseases, children'srespiratory disease, growth and development, children's susceptibility
to pesticides, and airway disease.  In FY 2000, the Agency enhanced these efforts by establishing a
ninth pediatric center to study developmental disorders. These children's centers will continue their
efforts in FY 2001.

       In addition to these university-based research  centers, the Agency will continue to support
extramural and in-house children's research through a variety of other efforts initiated in FY 2000,
including the following:

«      Buy Clean: Due to a lack of sufficient technical information that can be used by school systems
       around the country to make informed decisions about which water-based cleaners pose
       acceptable risks to children, the Agency will  continue to support research to develop test

                                          VIII-23

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      procedures and create market incentives for the manufacture and use of products, including
      water-based cleaners, that result in improved indoor air quality. This research will provide the
      technical information to serve as the scientific basis to upgrade guidance to schools.
•     Data  Collection:   Thousands  of
      man-made chemicals have not been
      tested for human health effects, and of
      those that have been tested, testing is
      often incomplete and does not address
effects that might be seen in children.  In
addition, exposure measurements have been
made for only a small fraction of these
chemicals,  and few  exposure studies have
focused on children until recently. Therefore,
the Agency will continue to support research
to develop data to improve its ability to assess
these chemicals by investigating effects on
developing organs, tissues and systems, and
by developing data on factors that contribute
to increased susceptibility and exposure in
children.
       Children's Health Research
             Areas of Emphasis

                 4.5%
32.8%
                                      31.8%
                     30.9%
  Asthma/Buy Clean Research
  Data Gaps Research
  STAR Research (Centers, RFAs,
  excludes asthma centers)
  Endocrine Disrupters Research
•     Asthma: EPA will  continue to conduct  research  that will integrate human  exposure,
      epidemiologic and clinical studies and mechanistic lab research (employing animal models of
      asthma) to further  our understanding of the  role of environmental pollutants  in  the
      induction/exacerbation of pediatric asthma. This effort includes collaboration with other public
      health agencies, including participation in two unique interdisciplinary studies of two groups
      of children. This research supports the FY 2000 Asthma Initiative, a proposal by EPA and HHS
      as part  of the President's Task Force on Environmental Health Risks and Safety Risks to
      Children.

•     EndocrineDisruptingChemicals(EDC): To address evidence suggesting that the effects of EDC
      exposure in children could be different from those experienced by adults, EPA will continue to
      support the development of methods to evaluate hazards that are quantitatively or qualitatively
      different from those observed in adults in immature organisms exposed to EDCs. Efforts will
      ensure that state-of-the-art science is incorporated into regulatory test methods and guidelines
      across the Agency.

      The new/improved data, methods, models, and guidance resulting from efforts under the Human
Health Research Program will support more effective Agency implementation of a variety of legislative
mandates, particularly the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), the Toxic
Substance Control Act (TSCA), the Federal Food, Drug, and Cosmetic Act (FFDCA), the Food Quality
Protection Act (FQPA) of 1996.
                                          VIII-24

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       This research program Is also supported through the Agency's Postdoctoral Initiative. The FY
2001 request represents the third year of the effort to enhance our intramural research program by
supporting 3.0 additional postdoctoral positions under this objective. This enhancement continues to
build upon the positive response by the academic community  to  EPA's announcement of 50
postdoctoral positions for FY 1999.
FY 2001 Change from FY 2000 Enacted

S&I

*      (+1,220,000 extramural) This is an initiative to provide support to the National Human
       Exposure Assessment Survey (NHEXAS).  Resources will support additional analyses and
       feasibility studies to demonstrate the benefits and costs of a national exposure program.  In
       achieving this task, Agency research  laboratories and centers will coordinate research to
       investigate  multipathway, cumulative and aggregate exposures to contaminant mixtures  by
       integrating  exposure measurements and modeling. This initiative will improve the Agency's
       ability to meet its objective of reducing uncertainty in human health risk assessment.

•      (+$3,010,500, -4.3 workyears) The R&D program, including infrastructure support costs, is
       spread across eight of the ten goals in the Agency's GPRA/budget structure. Based on a review
       of actual infrastructure utilization under each goal (i.e., utilization of workyears and associated
       PC&B,  travel, operating expenses, and working capital fund), adjustments are being made
       across goals to more accurately reflect expectations for use in FY 2001.
Annual Performance Goals and Performance Measures

Human Health Risk Assessment Research

In 2001     Implement completed Human Health Risk Assessment Research Strategy focusing on research
           to improve extrapolation, cumulative and aggregate risks, mixtures, susceptible populations,
           harmonization of cancer and non-cancer risk assessments, and evaluating the effectiveness of
           public health decisions.

In 2000     Develop risk assessment guidance and regional assessments concerning risks to children
           exposed to environmental contaminants.

Performance Measures:                            FY 1999       FY2000       FY2Q01
                                              Actuals        Estimate       Request

Assess pesticide exposures to children in Washington,
Minnesota, and Arizona.                                         1                        assessment

Report on the use of mechanistic data in developmental
 toxicity risk assesssment                                        1                        report


                                           VIII-25

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Develop exposure factors handbook for children                         1                           Handbook

Publish peer reviewed research strategy on
human health risk assessment.                                                         1           resrch strategy

NHEXAS: Begin implementation of
Strategic Data Analysis Plan.                                                          1           strategic plan

Baseline:    Historically, the goal of EPA's Human Health Risk Assessment Research has been to reduce
            uncertainties in risk assessment. Much of this program focused on uncertainties associated with
            extrapolation of animal data to predict human health risks.  In addition to publishing the final
            peer reviewed strategy, EPA will develop guidance, methods, and models that will coordinate
            EPA's research effort linking exposure and effects research, harmonizing cancer and noncancer
            risk assessments, and evaluating whether EPA's policy and management decisions have
            improved public health.

Exposures and Effect of Environmental Contaminants

In2001     Develop initial measurements, methods and  models to evaluate exposures and effects of
            environmental contaminants, particularly in children.

In 2000     Develop initial measurements, methods, and models to evaluate exposures and effects of
            environmental contaminants, particularly in children.

In 1999     Completed a first generation chlorpyrifos/pesticide exposure model and a technical report on
            children's activities associated with potentially high exposures.

Performance Measures:                              FY1999        FY2000         FY2001
                                                    Actuals         Estimate         Request

Develop and validate first phase models using
mechanistic data to predict toxicity for two noncancer
endpoints following less-than-lifetime
exposures to environmental contaminants.                               2 (min)                     report

Develop first generation multimedia and
multipathway exposure models for infants,
children, and the general population.                                   1                           model

First Generation Residential Exposure Models

Guidance on improving PK model usage for children.                                    1           guidance

Baseline:    Many of the current human health risk assessment methods, models, and data bases are based
            on environmental risks for adults. This research will be used to assist in determining whether
            children are more susceptible to environmental risks than adults and how to assess risks to
            children.
                                                 VIH-26

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Coordination with Other Agencies

      EPA is a co-leader in the effort to inventory and coordinate research in children's environmental
health and safety across the federal government through the President's Task Force on Environmental
Health Risks and Safety Risks to Children, which is co-chaired by the EPA Administrator and the
Secretary of Health and Human Services. The Research Subcommittee of the Task Force, co-chaired
by representatives of EPA and NIEHS, consists of approximately 20 agencies involved in children's
health and safety  issues.  The Research Subcommittee is developing a federal government-wide
inventory of research related to children and a federal research agenda. Special subcommittees on
childhood cancer, asthma,  developmental disorders,  and unintentional  injuries  to children are
developing research initiatives.  EPA is participant in the first three subcommittees.

      Several Federal agencies  sponsor research on variability and susceptibility in risks from
exposure to environmental contaminants. NIEHS achieves its mission through a multidisciplinary
biomedical research program, prevention and intervention efforts, and communication strategies that
encompass training, education, technology transfer, and community outreach. In 1998, in collaboration
with NIEHS, EPA established eight  Centers for Children's Environmental Health and Disease
Prevention to define the environmental influences on asthma and other respiratory diseases, childhood
learning, and growth and development.

      In addition, the NIEHS and the  National Institute of Allergy and Infectious Diseases (NIAID)
are conducting the Inner-City Asthma Study, which is a prevention trial to develop an intervention
strategy to reduce asthma morbidity in inner-city children and adolescents. The National Allergen
Study, being conducted by NIEHS in collaboration with the Department of Housing and Urban
Development (HUD), will examine the relationship between allergens and lead and will also focus on
how allergen exposures differ as a function of geographic region, socioeconomie status, housing type,
and ethnicity.

      The Agency has worked on interagency task forces with a number of federal agencies, including
National Institute for Occupational Safety and Health (NIOSH), National Institute of Environmental
Health Sciences (NIEHS),  Federal Drug  Administration (FDA),  and Consumer Product Safety
Commission  (CPSC), in developing health risk assessment guidelines  (e.g., Carcinogen  Risk
Assessment Guidelines, Developmental Toxicity Guidelines, Exposure Assessment Guidelines) and
has maintained interagency agreements with NIOSH and NIEHS.

      Historically, EPA has maintained formal research agreements with CDC, NIEHS, National
Institute of Child Health and Human Development (NICHD), NIOSH, and FDA for the conduct of
regional-scale human exposures studies such as NHEXAS and the U. S. - Mexico Border XXI Studies.
Current participants in NHEXAS include  federal agencies (CDC, FDA, and National Institute of
Standards and Technology (NIST)), state environmental and health agencies (Arizona, Maryland,
Massachusetts, Michigan, Illinois, Indiana, and Minnesota), EPA Regions (Regions 3, 5, and 9), and
academic research institutions. The Director of NIEHS has invited EPA to participate in developing
an expanded federal partnership to plan for future NHEXAS  studies. Current federal participants in


                                         VIII-27

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the Border XXI Program include the HHS agencies (CDC, FDA, Agency for Toxic Substances and
Disease Registry (ATSDR)), EPA Regions 6 and 9, and State Health and Environmental agencies in
Texas, Arizona, New Mexico, and California.
                                        VIII-28

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                           Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justificaton

 Provide Sound Science to Improve Understanding of Environmental Risk and Develop and
    Implement Innovative Approaches for Current and Future Environmental Problems

Objective #3: Emerging Risk Issues

      Establish capability and mechanisms within EPA to anticipate and identify environmental or
other changes that may portend future risk, integrate futures planning into ongoing programs, and
promote coordinated preparation for and response for change.
                                 Resource Summary
                                 (Dollars in thousands)

Research to Detect Emerging Risk Issues
Environmental Program & Management
Science & Technology
Total Workyears
FY1999
Enacted
$54,935.7
$7,216.1
$47,719.6
192.2
PY2000
Enacted
$46,106.5
$8,561.4
$37,545.1
156-0
FY2001 FY2001Req.v.
Request FY 2000 En a.
$54357.3
$8,821.9
$45,535.4
160.2
$8,250.8
$260.5
$7,990.3
4.2
                                    Key Programs
                                 (Dollars in thousands)

Reinvention Programs, Development and Coordination
Endocrine Disrupter Research
Exploratory Grants Program
STAR Fellowships Program
Rent, Utilities and Security
Administrative Services
FY 1999
Enacted
$0.0
$12,098.4
$12,038.0
$8,941.0
$0.0
$0.0
FY2000
Enacted
$7,057.0
$7,658.7
$10,803.5
$8,952.6
$396.8
$454.2
FY2001
Request
$7,264.1
$12,853.2
$10,669.0
$10,089.9
$410.3
$508.2
                                       VIII-29

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FY 2001 Request

      A clear vision of future environmental risk will enable EPA to manage strategically for
tomorrow and tactically for today.  Research benefits include an improved framework for decision-
making, increased ability to anticipate and perhaps deter serious environmental risks, and enhanced
communication with the public and other stakeholders.  This objective responds directly to
recommendations of numerous external  advisory panels that EPA improve its capacity to identify
emerging environmental risks, the respective long-term trends that would shape such environmental
risks, and major planning and policy issues related to associated research, monitoring, and intervention.
This new understanding will help to develop a process for identifying and conveying recommendations
concerning potential risks in the future.

      EPA is improving its capacity to identify risk through Endocrine Disrupters Research, Mercury
Research and graduate  fellowships and  exploratory grants under the Science to Achieve Results
Program (STAR).

Endocrine Disrupters

      Evidence has been accumulating that humans and animals, both domestic and wildlife species,
have suffered adverse health consequences resulting from exposure to environmental chemicals that
interact with the endocrine system, known as endocrine disrupting chemicals (EDCs).  To date, these
problems have primarily been identified in wildlife species with relatively high exposures to specific
compounds,  including organochlorines such as DDT and its metabolites, PCBs and dioxins, or in
domestic animals foraging on plants with high levels of phytoestrogens (Kavlock et. al, 1996).  In
humans, the effects of prenatal exposure to diethylstilbestrol (DBS) on the reproductive tract of both
females  and males are known, and developmental neurological problems have been identified in
children exposed to PCBs and/or polycbJorodibenzofurans (PCDFs). This specific reference can be
found in the  National Academies of Science report "Hormonally Active Agents in the Environment
(1999)". In addition, there are reports of declines in the quality and quantity of sperm production in
humans  over the last four decades, and increases in certain cancers that may have an endocrine-related
basis (breast, prostate, testicular), leading to speculation about environmental causes. This specific
reference can be found in EPA's Office of Research and Development report "Research Plan for
Endocrine Disrupters", EPA/600/R-98/087, February 1998.

      Despite these reported effects, we know little about their causes and the concentrations of EDCs
that would induce effects in various populations. Based upon recognition of the potential scope of the
problem, the possibility of serious effects on the health of populations, and the persistence of some
endocrine disrupting agents in the environment, the ORD published "Research Plan for Endocrine
Disrupters" in 1998. In FY 2001, endocrine disrupters research will continue to support an integrated
program of effects, exposure, risk assessment and risk management research.
                                         VIII-30

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      Effects research on EDCs will focus on: 1) evaluation of the adequacy of current testing
guidelines for assessment of EDCs; 2) determination of the classes of chemicals that act as EDCs and
their potencies; 3) determination of the dose-response curves for EDCs at environmentally relevant
concentrations; 4) development of tools to monitor the health of individuals inhabiting areas of EDC
contamination; and 5) integration of human and ecological effects research with exposure research.
This research is needed to determine the nature and extent to which environmentally relevant exposures
to chemicals are producing adverse effects in humans and wildlife species.

      Exposure research will identify and increase our understanding of major exposure routes and
processes, and develop predictive models for estimating the extent and magnitude of exposures of
humans and ecosystems to persistent bioaccumulative toxicants (PBTs), particularly those classified
as EDCs. EPA will conduct integrated toxicology and exposure studies in ecological systems or human
populations with suspected contamination or exposure.

      Risk assessment research will continue to develop an analytical framework for evaluating
impacts of reported endocrine disrupter phenomena.  Research will focus on: 1) identifying key risk
assessment issues for endocrine disrupters; 2)  providing methods for evaluating data on effects of
EDCs on human health and the environment; 3) developing a framework for assessing EDCs; and 4)
developing guidance for assessing EDCs. Finally, risk management research will focus on developing
mitigation measures for EDCs,

Mercury

      The Clean Water Action Plan  describes mercury as a complex environmental challenge.
Mercury is released from a variety of sources, exhibits a complicated chemistry, and proceeds via
several different pathways to humans and wildlife. Methylmercury is known to have toxic effects on
humans and wildlife. Mercury is atoxic, persistent, bioaccumulative pollutant that affects the nervous
system, and Methyhnercury is the chemical species that bioaccumulates in fish. People who consume
large amounts offish are at risk of adverse effects of methylmercury on the nervous system. Because
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 of
fish from local waters are particularly at risk of adverse effects.

        According to the EPA's Mercury Study Report to Congress, mercury fluxes and budgets
(essentially, availability in the Earth's outer crust) in water, soil, and other media have increased by a
factor of two to five over pre-industrial levels. Since mercury is a natural metallic element and does
not degrade to simpler compounds, it will always be present in the environment in one form or another.
As the quantity of available mercury in the environment has increased, so have the risks of neurological
and reproductive problems for humans and wildlife, making it a pollutant of considerable human health
and environmental concern. The presence of mercury is the most frequent basis for fish advisories,
represented in 60 percent of all water bodies with advisories. Forty-one states have  advisories for
mercury in one or more water bodies, and eleven states have issued statewide mercury advisories.
                                         VIII-31

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      ORD's mercury research program was established in response to a growing scientific concern
and public awareness regarding potential effects of human and environmental exposure to mercury.
In FY 2001, EPA's mercury research program will focus on mercury control and prevention, and
mercury monitoring and modeling.

      Mercury control and prevention research will support the regulatory determination for utilities
which will have to be made by FY 2001.  If it is determined that mercury should be regulated, the
Agency's  research will also support the proposed rule on mercury controls for utilities which is
targeted for FY 2004.  In addition, mercury standards developed for combustion sources such as
commercial and industrial boilers and hazardous waste incinerators will benefit from mercury control
and prevention research. Efforts related to non-utilitiesresearchwill addressmercury-producing sources
such as chlor-alkali plants and gold-mining.  EPA will provide expertise for development of control
technology for non-utility sources of mercury.

      Mercury monitoring and modeling research will focus on understanding the problems posed by
mercury releases to the environment.  Research in this area will increase through the FY 2000- 2004
time period to allow a better understanding of this issue for future regulatory efforts on mercury. The
finalized National Academy of Sciences (NAS) report on the health effects of mercury is expected hi
FY 2000. EPA  will analyze and interpret the report to derive an Agency position on risk assessment
for mercury.  This will be critical to the regulatory determination on mercury controls for utilities
planned for F Y 2001. Continued support hi health assessment will be needed in F Y 2001. Support for
a Total Maximum Daily  Loading (TMDL)  on mercury utilizing ecological data will be provided
through this research over the longer term.

      Research also will seek to improve communication of the risks of mercury to those especially
susceptible populations, such as pregnant women and children, who are at risk of elevated exposures
to methylmercury from fish.

Graduate Fellowships and Exploratory Grants

      Two important elements of the STAR program are Graduate Fellowships and Exploratory
Grants.  A blue ribbon panel of the Science Advisory Board recommended  that  EPA enhance its
environmental education programs for training the next generation of  scientists and engineers
(Fellowships/Environmental Education). The graduate fellowship program was initiated in 1995 for
that purpose.  This competitive, peer-reviewed program is designed to attract some of the brightest and
most dedicated students in the Nation to take advanced teaming in scientific and engineering disciplines
relevant to protection of public health and the environment and, ultimately, to careers in environmental
science and engineering - not only for EPA, but for states, localities, and industry.  Beyond developing
young minds for future needs, fellowship studies bring fresh ideas to bear on EPA science issues. Work
done under the fellowshipprogram helps resolve uncertainties associated with particular environmental
problems and focuses graduate research on priority research areas.  In FY 2001, the Agency expects
to support fellowships across multiple disciplines, including the biological and physical sciences,
mathematics and computer science, and engineering.


                                          VIII-32

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      In FY 2001, the Exploratory Grants research program will generate new ideas and produce new
scientific information by encouraging creativity and innovation in scientific research.  Through
publication of an annual general solicitation, the program defines general areas in which there exist
significant gaps in scientific knowledge and understanding, and allows individual investigators from
the academic research community to conceive, define, and propose research projects.  Topics from a
broad variety of areas, such as environmental chemistry and physics, health and ecological effects of
pollution can receive attention under the Exploratory Grants program.

      Proposals are competitively reviewed by panels of predominantly outside Agency researchers,
with only the most scientifically sound proposals ultimately receiving support.  The major program
outputs are scientific articles published in the peer literature. The scientific information shared through
such publications is intended to broaden and enhance scientific knowledge and understanding and to
be used as inputs into more targeted, more applied environmental research programs.

      ORD will work with the Agency's Office of Administration and Resource Management to
ensure mat opportunities to compete for STAR grants are available to Historically Black Colleges and
Universities (HBCUs) and Hispanic Serving Institutions (HSI). This is consistent with the President's
Initiative on HBCUs (EO 12876) and the Presidential  Initiative on Education of Excellence  for
Hispanic Americans (EO 12900).

      This year ORD has started an evaluation of the STAR program by the Agency's Science
Advisory Board and ORD's Board of Scientific Counselors. The first report in this evaluation is
scheduled to be released in March 2000.
FY2001 Change from FY 2000 Enacted

S&T

»      (+$4,841,800) This enhancement will support efforts under the Endocrine Disrupters (EDC)
       research program. In accordance with the multi-year research plan published in February 1998,
       the EDC program will expand its efforts to develop a better understanding of the potential
       effects of EDCs on human health. In F YO1, EPA and other federal agencies, under the auspices
       of the NSTC's Committee on Environment and Natural Resources, will issue a joint Request
       for Applications (RFA) for grants for studies that will investigate the relationships between
       exposure to endocrine disrupters and reproductive/developmental effects in humans.  EPA's
       resources, leveraged with those of the other agencies, will address a high priority research gap.
       Select examples of effects of interest that will be identified in the RFA include: 1) reduced
       fertility in exposed human males and females, 2) pregnancy outcomes  of exposed human
       females,  and 3) hormonally mediated cancers of the reproductive tract in human male and
       female offspring exposed in utero. Research supported under the EDC program will be awarded
       through a competitive peer-review process. The EDC increase will improvethe Agency's ability
       to deal with major human health threats posed by EDCs.
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•      (+$1,991,100, -2.0 workyears)  This enhancement will support efforts under the graduate
       fellowship program and the Minority Institutions Assistance (MIA) fellowship program. The
       graduate and MIA fellowship programs will award fellowships to deserving students studying
       environmental sciences/engineering at accredited institutions of higher learning. Awards under
       the fellowship programs will be made on the basis of rigorous competitive evaluation. These
       fellowships will position the Agency to meet its future scientific workforce and diversity goals.

•      (+$2,885,000, + 7.0 workyears) This increase represents a technical realignment of resources
       from the core research program under Sound Science Pollution Prevention, (Goal 8, object 4),
       to consolidate mercury research in one place.   This research will improve the Agency's
       understanding of the problems posed by mercury releases into the environment. There is no
       programmatic impact and no impact on performance commitments.

       (-$2,315,500) The 2001 request is $2,315,500 below the 2000 Enacted budget level due to
       Congressional earmarks received during the appropriations process that are not part of the 2001
       President's Request.

•      ($1,117,100,  -0.7 workyears)  The R&D program, including infrastructure support costs, is
       spread across eight of the ten goals hi the Agency's GPRA/budget structure. Based on a review
       of actual infrastructure utilization under each goal (i.e., utilization of workyears and associated
       PC&B,  travel, operating expenses, and working  capital fund), adjustments are being made
       across goals to more  accurately reflect expectations for use in FY 2001.

EPM

•      (+$ 114,000) Reflects increased payroll costs.

Annual Performance Goals and Performance Measures

Research on Endocrine Disrupting Chemicals

In 2003     Develop tools to identify and characterize hazards, conduct initial assessments, and formulate
           preliminary strategies to manage risks from exposure to endocrine disrupting chemicals capable
           of inducing adverse effects on humans and wildlife.

In 2000     Develop tools to identify hazards and formulate strategies to manage risks from exposure to
           endocrine disrupting chemicals capable of inducing adverse effects in humans and wildlife.

In 1999     Completed a protocol for a field exposure study of children to two (2) endocrine disrupting
           chemicals (EDCs), which will help reduce uncertainties about actual exposure to EDCs.

Performance Measures:                            FY 1999       FY2000       FY2001
                                              Actuals        Estimate       Request

Produce workshop report on the EDSTAC screening
process for EDCs  and determine application of the
EDSTAC testing program for chemical hazard
and risk assessment.                                            1                        report


                                             VIII-34

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Characterization of environmental agents as
risk factors in human prostate cancer.                                   1                           characterizat'n

Reports on endocrine and other effects in exposed
women and their offspring in a
cohort contaminated by PBBs.                                         2                           report

Reports on the molecular mechanisms underlying
estrogen receptor functions in ER knockout mice.                        2                           report

Development and refinement of test methods
for use in Tier 1 testing of potential EDCs                               2                           methods

Development of amphibian assay for use
in hazard identification.                                               1                           assay

Protocol for field exposure study of children to 2 EDCs

Provide prototypical mechanism-based methods
for assessing the risk of developmental and
reproductive toxicants using amphibian and small fish models.                            9/30/01     methods

Baseline:    In order to address uncertainties with regard to whether endocrine disrupting chemicals are having
            adverse impacts on wildlife and humans, we must increase our ability to detect their activity at
            various levels of biological organization, as well as across species.  As pointed out in EPA
            publications, as well as the most recent NAS report on Hormonally Active Agents, there are large
            gaps in our current science regarding the nature, significance, and magnitude of the endocrine
            disrupter issue.  In the short term, we need to develop and validate specific tests of endocrine
            activity to support  implementation of the screening and testing requirements of the FQPA as
            recommended by the EDSTAC.  We  must also must bring more focus to addressing questions of
            the risk assessment approaches  to endocrine active compounds,  especially in relationship to
            endogenous hormone levels, exposure to multiple endocrine disrupters, and the key life stages that
            are at greatest risk. In the longer term, we need to identify the  critical sources and fates of
            endocrine disrupters that are deemed to be of highest concern on the basis of their biological
            effects, and to develop technologies or approaches to mitigating those exposures.

Mercury Research

In 2001     Provide recommendations both  about revising, if needed, EPA's  reference  dose  (RfD) for
            methylmercury and for managing risks from environmental exposures to  mercury.

In 2000     Initiate a research program to address the most pressing issues related to the prevention, control,
            and elimination of mercury as a human health and environmental problem.

Performance Measures:                               FY1999        FY2000        FY2001
                                                    Actuals         Estimate        Request

Provide a mercury research plan to act as guide in the
execution of an ORD-based mercury research program.                   1                           plan

Publish results of bench and pilot testing aimed at
identifying improved sorbents for mercury
mitigation from coal-fired utility boilers.                                               1           publication
                                                   VIII-35

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Make recommendations, as appropriate, for
revision of EPA's RfD for methylmercury
based on analysis of the National Academy
of Sciences report on mercury.
9/30/01
recommend.
Baseline:    The most up-to-date scientific and technical information on risk assessment and risk
           management of mercury was presented in the Mercury Study Report to Congress (December
           1997). That report demonstrated a plausible link between mercury emissions and effects
           caused by the eventual uptake by humans via fish consumption.  At the same time, the
           National Academy of Sciences has undertaken a review of research describing adverse
           effects of methylmercury on human health (especially as these exposures affect development
           of the nervous system) and the kinetics of mercury in the human body. Hie evaluation of
           these data by the NAS committee will be used in a reassessment of EPA's Reference Dose
           (RfD) for methylmercury. ORD  is supporting a research program to address several
           research questions that  need to be answered with  respect to mercury.  Three of the most
           important research needs that will be addressed over the next two years are: (1) identifying
           human exposures to methylmercury in the US and determining how close these are to levels
           of mercury that adversely impact human health, especially for women of child-bearing age
           and very young children; (2) developing an improved understanding of the emissions and
           releases of mercury into the environment; and (3) providing additional data on the costs and
           benefits associated with various control technologies and approaches for minimizing and
           reducing mercury emissions.
Coordination with Other Agencies

       The broad nature of the EDCs issue necessitates a coordinated effort on both the national and
international level.  EPA's Office of Research and Development (QRD)  has shown extensive
leadership at both levels - chairing the Committee on Environment and Natural Resources (CENR)
interagency working group and serving on the IPCS/OECD Steering Group on Endocrine Disrupters.

       Under EPA's leadership an inventory of federal research on endocrine disruption has been
developed and used to evaluate the current state of the federal effort,  identify research gaps and
establish priorities, and clarity governmental roles and responsibilities. To date, nearly 400 projects
have been identified as being sponsored by the participating 14 agencies. Due to the complex nature
of the uncertainties posed by the endocrine disrupter hypothesis, the overlapping concerns of federal
agencies, and the resource constraints on the federal budget, close coordination and cooperation
among federal agencies are essential to the resolution of critical research questions.  While the
CENR provides the umbrella for this coordination,  individual agencies are  responsible for
development of their own independent research plans. Therefore, an important component of EPA's
Research Strategy on Endocrine Disrupters is to communicate with other federal organizations on
EPA's goals, priorities, and projected accomplishments.

       In conjunction with the CENR effort, a companion effort to inventory research has been
conducted hi Europe and efforts are currently underway under the auspices of the World Health
Organization's International Programme on Chemical Safety (IPCS) and the Organization of
Economic and Cooperative Development (OECD) to assemble an international inventory and
assessment of the endocrine disrupter issue. Once again, EPA is demonstrating leadership in helping
establish the international inventory.
                                          VIII-36

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      A critical aspect of mercury research involves pollution prevention. Progress has been made
in organizing the concepts and ideals of pollution prevention in the private sector, but much work
remains to be completed.  As a result,  EPA in a unique position to focus Federal pollution
prevention investments in this critical areas. The agency through partnerships with private sector
companies, non-profits, other Federal agencies (such as DOE), universities and states, including
California EPA has labored to identify and control human exposure to tnethylmercury.

      For economics, the Agency will continue to support jointly sponsored economic workshops
with other regulatory agencies, such as efforts underway with the Food and Drug Administration and
Department of Agriculture, to address the economic valuation of human health effects. The Agency
and ORD's workshops on economics and environmental policy will continue to draw upon EPA's
sponsored economic research, facilitating information exchanges among  academic  and federal
regulatory agency representatives.

Statutory Authorities
Clean Air Act (CAA) and amendments
Environmental Research, Development and Demonstration Act (ERDDA)
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)
Toxic Substances Control Act (TSCA)
Food Quality Protection Act (FQPA) of 1996
Safe Drinking Water Act (SDWA) and amendments
TSCA sections 4, 5, and 6 (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(TV)(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
                                       VHI-37

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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

         Sound Science, Improved Understanding of Environmental Risks, and
               Greater Innovation to Address Environmental Problems


Objective # 4:  Pollution Prevention and New Technology

      By 2006, 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.
                                Resource Summary
                                (Dollars in thousands)

Pollution Prevention and New Technology for
Environmental Protections
Environmental Program & Management
Science & Technology
Hazardous Substance Superfund
Total Workyears


Common Sense Initiative
Environmental Technology Verification (ETV)
Pollution Prevention Tools and Technologies
Rent, Utilities and Security
Administrative Services
FY 1999 FY 2000
Enacted Enacted
$«8,38S.2 $68,172.4
$877.7 $5,105.3
$67,507.5 $62,802.1
$0.0 $265.0
169.3 206.1
Key Programs
(Dollars in thousands)
FY1999
Enacted
$867.0
$6,908.5
$30,509.5
$0.0
$0.0
FY2001 FY2001Req.v.
Request FY 2000 Ena.
$52,564.4
. $5,527,5
$45,698.3
$1,338.6
198.0

FY2000
Enacted
$630.4
$6,392.6
$27,442.0
$4,001.1
$839.0
($15,608.0)
$422.2
($17,103.8)
$1,073.6
(8.1)

FY2001
Request
$641.8
$6,699.5
$19,469.3
$4,414.2
$890.1
                                      VIII-38

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FY 2001 Request

      EPA supports pollution prevention (P2) as a necessary and logical strategy for dealing with
high-risk human health and environmental problems that are addressed by Federal environmental,
health, and safety regulations. In order to promote decisions which place pollution prevention as the
first solution among many, research must focus on the development of tools and technologies that
are more quantitative and easier for stakeholders and  decision-makers to use than those currently
available.

      To promote environmentally benign technology, research is needed to identify and test new
industrial manufacturing and processing technologies capable of enhancing productivity without
sacrificing long-term resource  viability or increasing human health and/or environmental  risk.
Several areas of research  contributing to the achievement of the annual performance goals are: 1)
pollution prevention tools, methods, technologies, and approaches; 2) environmental technology
verification (ETV); and 3) environmental engineering economics (E3).

      Pollution prevention tools and technologies must meet the needs of stakeholders and decision
makers, must be easy to understand and use. Attributes of these tools must include an ability to: (1)
fully  characterize and compare  the environmental  and human  health impacts of alternative
approaches or products and processes, (2) describe and track the risks which stem from production
and consumption decisions, and (3) quantify and measure the benefits derived from those decisions.
Coupled with the development of this new generation of tools and technologies, there must be an
explicit recognition that pollution prevention will  play an important role in  environmental
sustainabiliry well into the future (such as  life cycle assessment). A life cycle assessment (LCA)
studies the environmental consequences throughout the life span of a product, process or activity
(i.e., from "cradle to grave"), from raw material acquisition, through manufacturing, use-reuse and
final disposal. It assesses the potential environmental impacts by compiling an inventory of relevant
inputs and outputs (including resource and energy use  and pollutant release) and evaluating the
potential environmental impacts of those inputs and outputs.

      Every effort must be made to extend pollution prevention and life cycle thinking into the
arena of sustainable development where  its benefits to  human health and  environmental risk
management can be objectively understood and employed. This is particularly true as States, cities,
and tribes increasingly make decisions on their environment at a community level.

      The goal of the ETV program is to verify the  performance  characteristics of commercial-
ready environmental technologies through the evaluation of objective and quality-assured data so
that potential purchasers and permitters are provided with an independent and credible assessment
of the technology that they are buying or permitting.  With broad support from industry and other
Federal partners, the ETV Program will continue  to verify the environmental  performance
characteristics of technologies in all media (e.g., industrial pollution prevention, recycling and waste
treatment;  advanced air, water,  and field monitoring technologies;  air, pollution  control and

                                         VIH-39

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greenhouse gas reduction technologies; drinking water, eco-system, and waste water systems) under
its twelve pilots. In addition to supporting these twelve ETV pilots, the Agency will collect data on
operational parameters (e.g., number of participants; cost and time required to perform tests and
report results), and on outcomes (e.g., use of data by the states and public; sales reported by vendors)
in order to evaluate all aspects of the ETV Program.

       Established in 1995, ETV has verified 55 environmental technologies and 105 are currently
in testing. EPA will use this information to make long term recommendations to the Congress on
the future and shape of the ETV Program.   Finally, the Agency will track applications and
expressions of interest on the part of technology developers who come to the Program, but do not
fit into the present suite of verification activities. EPA will continue to enhance the ETV Program
outreach efforts through the ETV Web site, national conference(s)/workshop(s) and State permitter
training. There will be a regular review of the outreach strategy to assure effective diffusion of ETV
program information. In 2001, the Agency will prepare a report for Congress which will evaluate
the results of the first five years of the ETV program.

       Environmental Engineering Economics (E3), including cost-effectiveness analysis, has the
potential to not only promote pollution prevention, but also to guide investments in new technologies
and approaches and improve regulatory impact analysis capabilities.  Estimation of the costs of
reducing environmental effects, while generally thought to be straightforward,  is at least as
challenging as estimation of the benefits. Internally, the Agency is funding economic studies under
various important environmental and human health risk management topics. To address the issue
of benefits, the Agency's Science to  Achieve Results (STAR) grants  program is funding a
solicitation on Decision-making and Valuation for  Environmental Policy  competition.   This
competition encourages research that will contribute to the development of practical, credible
approaches for estimating the benefits and costs of environmental programs and improve decision-
making on environmental issues.

_^_^ As pollution prevention implementation has advanced in the past ten years, many of the
problems most easily addressed by using a preventive approach have been solved.  One area that
is particularly challenging relates to persistent, bioaccumulative toxics (PBTs).  A major Agency
effort is underway (i.e., the PBT Initiative via the Great Lakes Binational Toxics Strategy and the
Agency's Multimedia Strategy for Priority Persistent, Bioaccumulative, and Toxic Pollutants) to
address this set of problematic chemicals.  In support of the PBT Initiative goal of prevention,
mimrnization, and, when possible, elimination of PBTs, the Agency will make a number of
contributions to the above strategies in FY 2001 that will be focused on improvements to, and
development of, better methods for identification, testing, and prevention of PBTs across the board,
and as appropriate, will target specific PBTs (e.g., mercury, dioxin, PCBs) for intense attention in
support of Program Office and Regional needs. Four focus areas have been identified for attention
with respect to PBTs: (1) transport and fate, (2) targeted risk management, (3) monitoring and
methods development, and (4) science workshops.
                                        VIII-40

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      In the risk  assessment area, risk  assessors and risk managers will develop tools and
methodologies which are meaningful and understandable to the public in terms of the costs and
benefits associated with the magnitude of the risk that is identified. This is a long-term effort that
will require the development and improvement  of quantitative risk assessment and cost/benefit
analysis or similar  tools.  Together, these tools will provide a more robust and reliable means of
making decisions on human health and  environmental risks. The Agency will develop tools and
methodologies to scientifically and systematically assist in makingmorequantitativedecisions about
the most preferred pollution prevention options.  The types of research to be included are: 1)
improving life cycle assessment (LCA) tools; 2) developing and enhancing computerized databases
on less-polluting alternatives; and  3)  developing cost  assessment and  benefit/cost  analysis
methodologies.

      The Agency will also target a number of economic sectors in concert with EPA's Program
Offices and regions where research and development is needed on pollution prevention technologies
and approaches. The types of research to be conducted include: (1) developing improved separations
techniques for the  removal and reuse of chemicals; (2) assessing and evaluating alternatives to
volatile organic compounds (VOCs) in solvents and coatings; (3) assessing and evaluating reductions
in releases of halogenated compounds and metals (e.g., persistent, bioaccumulative, and toxic
materials) in processing and use; (4) assessing releases associated with consumer products in an
indoor environment; (5) improving process controls to reduce wastes; (6) examining and developing
green chemistry and green engineering approaches to prevent pollution; and (7) supporting Agency-
wide initiatives in pollution prevention (e.g., Sector Initiative, PBT Initiative).

      The Agency's STAR grants program will maintain a portfolio of pollution prevention and
valuation research.  This portfolio of research grants is focused in four areas for pollution prevention:
(1) engineering for pollution prevention; (2) green chemistry; (3) pollution prevention simulations,
modeling,  sensors and feedback; and (4) industrial ecology.  Topics covered include solvent
substitution, bioengineering, improved catalysis for pollutionprevention,benign chemical reactions,
green design, modified processes, and materials recycle and reuse for pollution prevention.  This
portfolio of research grants is also focused on two areas for valuation; (1) the relationship  between
the economy and the environment; and (2) environmental decision-making.

      This research program is also supported through the Agency's Postdoctoral Initiative. The
FY 2001 request is the third year of the effort to enhance our intramural research program by
supporting 3.7 additional postdoctoral positions under this objective. This enhancement continues
to build upon the positive response  by  the academic community to EPA's announcement of 50
postdoctoral positions for 1999.
                                         VIII-41

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FY 2001 Change from FY 2000 Enacted

S&T

•      (-$3,504,000, -7.0 FTE) THs reduction represents a technical realignment of mercury risk
       management and risk assessment research resources transferred from Goal 8, Objective 4,
       to Goal 8, Objective 3. There is no programmatic impact nor change in performance
       expectations.

•      (-$1,811,800, -6.0 FTE)_Jn order to fund higher priority research, the Agency will reduce
       efforts in its pollution prevention program. This reduction will reduce the Agency's effort
       in environmental engineering economics (E3) and new efforts in the areas of environmental
       benefits and valuation, particularly in the areas of new processes, products, and materials to
       eliminate VOCs and other hazardous air emissions in small- and medium-sized businesses.

*      (-$5,100,900)  This reduction relates to the change in resources set-aside for the Small
       Business Innovative Research (SBIR) program from its 2000 level. Final funding level for
       the SBIR program in FY 2001 will be fully funded during the operating plan process.

       (-$8,613,900)  The 2001 request is $8,613,900 below the 2000 enacted budget level due to
       Congressional earmarks received during the appropriations process that are not part of the
       2001 President's Request.

•      (+$ 1,104,400) Additional resources provided towards creating a more comprehensive and
       clear understanding of data quality, and what its impact to all aspects of our
       environmental and public health mission.
Annual Performance Goals and Performance Measures

Pollution Prevention Tools and Methodologies

In 2001    Work under this APG is proceeding according to schedule.

In 2001    Prepare and deliver pollution prevention tools aid methodologies for multiple economic
          sectors in order to enhance a preventive approach to risk management and advance the
          use of pollution prevention and sustainable development.

In 2000    Provide decision-support tools and methods which can be applied to determine the value
          and costs of solutions to environmental problems, and develop partnerships to assist in
          the application of these tools and methods to community-based environmental programs
          including tribal partners.

In 2000    Complete development of one or more computer-based tools which simulate product,
          process, or system design changes, and complete proof-of-process structure for one or


                                         VIU-42

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In 1999
more generic technologies (appl. to >1 env. problem) to prevent or reduce pollution in
chemicals and industrial processes.

Completed a draft prototype decisoin support tool for alternative municipal solid waste
management.
Performance Measures:
                                        FY 1999
                                        Actuals
FY 2000
Estimate
Complete prototype decision support software for
alternative municipal solid waste management options.

Complete dev. of the PARIS II Software, a tool to design
env. benign solvents, & complete dev. & integration
of WAR Algorithm, v 1.0, into a commercially
available chemical process simulator

Complete BETA testing of decision support tool for life
cycle analysis of municipal solid
waste management options.

Provide an upgraded &  enhanced Solvents Alternatives
Guide (SAGE) software (expert) to incl, cost
algorithms, giving it cost projection capability to
complement its process  selection capability

Integrate the process change/waste reduction
algorithm (WAR) with costing software (Icarus)
and a chemical process simulation package (Aspen).

Complete a decision support tool for life cycle analysis
of municipal solid waste management options.

Publish a peer-reviewed protocol for conducting
Risk Management Evaluations.

Complete grant on development of tool for
predicting biodegradability of compounds.
                                                       09/30/2000
                                                       09/30/2000
                                                       09/30/2000
FY 2001
Request
                                                                        1
                            software
                            tool
                            software



                            package


                            tool & report


                            protocol


                            grant report
Baseline:    By 2003, provide a full range of multimedia pollution prevention decision-support tools to
            regional, state, tribal and community decision-makers.

New Technologies

hi 2001     Develop, evaluate, and deliver technologies and approaches that eliminate, minimize, or control
            high risk pollutants from multiple sectors. Emphasis will be placed on preventive approaches for
            industries and communities having difficulty meeting control/emission/effluent standards.

In 2000     Use of a pilot program to verify environmental technologies.
                                                   VIII-43

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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:                             FY1999        FY2000       FY2001
                                                 Actuals        Estimate       Request

Provide verification data on 50 or more technologies.

Complete test protocols for all 12 ETV pilots
will be available.                                                  09/30/2000                protocols

Verify 125 technologies.                                           125                       technologies

Deliver a Report to Congress on the status and
effectiveness of the Environmental Technology
Verification (ETV) Program during its first five years.                                 1          report

Complete performance evaluations of various metal
finishing processes aimed at zero-discharge metal
pretreatment as replacements for
more hazardous processes.                                                         1          report

Complete a capstone report summarizing current
knowledge about volatile organic compounds and
hazardous air pollutants emissions
from paints used indoors.                                                          1          report

Develop new process for drycleaning microelectronic
wafers to decrease water usage and toxic chemicals.                                    1          grant report

Baseline:   There has been no consistent basis for comparing effectiveness and costs of new pollution
           prevention and control technologies to those of technologies currently in use. EPA is
           accumulating data on performance and costs of environmental pollution prevention and control
           technologies which will serve as a basis for the Agency as well as those outside EPA to evaluate
           and compare effectiveness and costs of technologies developed.
Verification and Validation of Performance Measures

Goal 8 Objective 4

Performance Measure: Deliver a report to Congress on the status and effectiveness of the
Environmental Technology Verification (ETV) Program during its first five years.

Performance Database: Output

Data Source: N/A
                                             VIII-44

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QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A

Coordination with Other Agencies

       Pollution prevention, environmental technology verification (ETV), and environmental
engineering economics (E3) are  all research areas that lend themselves to and benefit from
engagement with other federal organizations, states, and local organizations. EPA has worked over
the years with the National Science Foundation (NSF) in co-funding extramural research on
technology for a sustainable environment and environmental valuation. The Agency has contributed
projects  to  the  Department of Defense's (DoD's) Strategic Environmental Research  and
Development Program (SERDP) with particular emphasis on the pollution prevention pillar and the
use of life cycle thinking in addressing the production and manufacture of weapons and military
hardware.   With respect to ETV, the Agency has co-funded efforts on monitoring technology
evaluation with the Department of Energy's (DOE's) Sandia and Oak Ridge National Laboratories.
Just recently, EPA signed a Memorandum of Agreement with DOD to jointly advance ETV and
DoD's Environmental Science and Technology Evaluation Program for evaluating and verifying
environmental technologies.

       Preliminary contacts have been made with the Department of Agriculture (USD A) regarding
life cycle analysis and a preventive approach in the development and advancement of biologically
and genetically altered products.  DoD's U. S. Army Corps of Engineers has been engaged in
addressing issues related to costs of engineered projects and research associated with benefits and
costs of technologies and projects. Finally, under the PBT Initiative, EPA has been working with
DOE and the U. S. Geological Survey to address risk management issues associated with mercury
emissions from utilities. These efforts are expected to expand with the implementation of the
Mercury Research Strategy in FY  2001 under Goal 8, Objective 3.

       All of the above activities leave EPA in a unique position to focus Federal pollution
prevention investments because: (1) it is the only Federal research organization with the broad
mission to ensure that pollution prevention provides maximum human health and environmental
protection, and (2) it has direct links to the regulatory and compliance offices of EPA to ensure a
focus  on the highest priority problems.  For example, one area of particular interest amenable to
federal, state, and local engagement is environmental sustainability. The Agency is exploring how
best to engage in a multi-organizational effort to advance research on sustainability over the next
several years through collaboration with such organizations as the National Governors Association,
the Environmental Commission of the States, and the National Association of Local Government
                                        VIII-45

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Environmental Professionals.  This engagement would be done in close cooperation with other
federal organizations and the appropriate programs and regions within EPA.

Statutory Authority

Clean Air Act
The Safe Drinking Water Act
The Clean Water Act
The Toxic Substances Control Act
The Federal Insecticide, Fungicide, and Rodenticide Act
The Resources Conservation and Recovery Act
Superfund Amendments Reauthorization Act
Clean Air Act Amendments of 1990
Pollution Prevention Act of 1990
                                       VIII-46

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                           Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

           Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems


Objective # 6: Increase Use of Integrated, Holistic, Partnership Approaches

       By 2005, EPA will increase the number of places using integrated, holistic, partnership
approaches, such as community-based environmental protection(CBEP), and quantify their tangible
and sustainable environmental results in places where EPA is directly involved.
                                  Resource Summary
                                  (Dollars in thousands)
                                        FY1999
                                        Enacted
          FY2000
          Enacted
         FY2001    FY2001Req.v.
          Request     FY 2000 En a.
Increase Use of Integrated, Holistic, Partnership
Approaches

   Environmental Program & Management

       Total Workyears
$16,706.6      $9,286.8
$16,706.6

    24.4
$9,286.8

    8.9
            $17,088.5
$17,088.5
     8.5
             $7,801.7
$7,801.7
   (0.4)
                                     Key Programs
                                  (Dollars in thousands)

Innovative Community Partnership Program
Regional Geographic Program
FY1999
Enacted
$4,701.8
$8,070.6
FY2000
Enacted
$309.8
$11,989.8
FY2001
Request
$4,841.5
$12,193.1
FY 2001 Request

       EPA's  community-based approach works to  provide integrated  assessment tools and
information for environmental protection in partnership with local, state, and tribal governments.
EPA Regions also provide direct assistance to communities to assist them in  environmental
programs.  The work focuses on building the  capacity of communities to work effectively at

                                        VHI-47

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identifying and solving environmental issues in ways that support healthy local economies and
improved quality of life. In 2001, EPA will continue to 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 environmental  issues  within a place-boundary and 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 and the analysis of options for resolution that
address communities' economic and social concerns.

      The Regional Geographic Initiatives (RGI) program works with local communities and other
partners to apply state-of-the-art, multi-media approaches to their unique human and environmental
risks.   The RGI program provides flexibility for the EPA Regional  offices to partner  with
communities at the state, local, and private levels to collaboratively achieve environmental results.
The projects address geographic environmental problems that have proven to be high risk to human
health and ecosystems. The RGI program is different from other traditional EPA programs in that
RGI addresses community based environmental risk holistically (multi-media). This program uses
comparativeenvironmentalrisk assessments to implement unique and creative multi-media solutions
and promotes state-of-the-art environmental management. RGI is EPA's  role model transitioning
from a single-media to a multi-media focus, based on consensus-building, science and risk.

      The Innovative Community Partnership Program is a nationally competitive grants program.
The grants act as seed money to  leverage public and private investment in  innovative, locally-
developed solutions to serious environmental  problems which EPA has a mandate to address.
Successful projects must integrate environmental protection, economic  vitality, and community
well-being and meet stringent criteria related to innovation, replicability, community commitment,
and measurable results.
FY 2001 Change from FY 2000 Enacted

EPM

•     (+$4,841,500) Reflects support  for the Agency's Innovative  Community  Partnership
      Program.

      (+$3,840,400) Reflects restoration of RGI activities that were cut in 2000.

      (-$229,200, -2.8 FTE) Reflects reduced support for CBEP initiatives.

•     (-$600,000) Resources are not provided for Congressional earmarks.
                                        VIII-48

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Statutory Authorities




Multi-media
                                       VIII-49

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

           Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems


Objective # 7:  Increase Opportunities for Sector Based Approaches

       By  2005, test innovative facility-  and sector-based strategies to  achieve  improved
environmental protection, and make successful approaches broadly available.
                                   Resource Summary
                                   (Dollars in thousands)
                                         FY1999
                                         Enacted
           FY2000
           Enacted
           FY 2001    FY 2001 Req. v.
           Request     FY 2000 Ena.
Increase Opportunities for Sector Based
Approaches

    Environmental Program & Management

    Science & Technology

       Total Workyears
$20,762.2
$19,703.4
$19,862.2      $18,325.9

  $900.0       $1,377.5

    98.2          97.8
$15,921.3
($3,782.1)
             $15,921.3     ($2,404.6)

                 $0.0     ($1,377.5)

                110.5          12.7
                                      Key Programs
                                   (Dollars in thousands)

Urban Environmental Quality and Human Health
Project XL
Common Sense Initiative
Reinvention Programs, Development and Coordination
Administrative Services
FY1999
Enacted
$0.0
$3,359.9
$3,812.5
$0.0
$0.0
FY2000
Enacted
$0.0
$1,750.5
$1,016.4
$8,217.5
$110.6
FY2001
Request
$3,395.0
$1,791.6
$2,840.4
$9,218.6
$120.5
                                          VIII-50

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       FY 2001 Request

             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. These initiatives
       stem from the commitments in the March 1995 Reinventing Environmental Regulation report issued
       by President Clinton and Vice President Gore.  EPA's priorities for innovation were updated and
       refocused in the July 1999 report of the EPA Innovations Task Force, "Aiming for Excellence:
       Actions to Encourage Stewardship and Accelerate Environmental Progress." In the course of this
       work, the Agency works closely with states, tribes, and local governments, and pays particular
       attention to the needs of small and medium-sized businesses.

             In FY2001, EPA will complete its transition from the Common Sense Initiative (CSI), the
       agency's initial multi-stakeholder, industry sector-focused effort to a permanent, integrated sector-
       based approach to environmental protection. The Agency will  continue experimenting with
       innovative facility-based projects to pilot alternative environmental management strategies that
       achieve improved,  more cost-effective performance in lieu of otherwise applicable rules and
       regulations.

             Project XL, launched in  1995, was designed to improve EPA's ability to innovate and
       incorporate flexible approaches that result in environmental improvement and reduced cost. In FY
       2001, EPA will move Project XL (50 projects expected to be implemented in FY 2000) to the next
       phase that expands EPA's ability to conduct innovative policy experiments that provide superior
       environmental performance,  test flexible approaches, and lead to policy, programmatic and
       regulatory improvements. This next phase will include: 1) managing ongoing XL pilot projects; 2)
       evaluating the project results for their environmental and economic benefits and their applicability
       to policy and regulatory improvements;  3) incorporating the applicable policy and regulatory
       improvementsinto EPA's core functions including regulations, permitting, monitoring and reporting
       requirements, and other areas; 4) working with states to implement innovative pilots that require
       Federal flexibility under the ECOS-EPA Innovations agreement; and, 5) implementing additional
       innovative pilots that address opportunities identified by EPA, the business community and other
       stakeholders.

              Sector strategies complement current EPA activities by allowing the Agency to approach
       issues more holistically, with integrated strategies for each industry sector. Sector-based approaches
       also enable  EPA to tailor efforts to the particular  characteristics of each sector; identify related
       groups of stakeholders with  interest in a set of issues; link EPA's efforts with those of other
       agencies; and craft new approaches to environmental protection.

              In 2001, the Agency will extend its sector-based programs by building consideration of
       sector-specific applications into the development of regulations and policy/guidance documents. It
       will continue to expand its work with specific sectors,  particularly those characterized by a high
       concentration of small businesses. EPA will continue implementation and expansion of the Metal
I
                                               vni-5i

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Finishing Strategic Goals Program, and will pursue similar performance partnership programs with
other industry sectors, starting with the Foundry and Casting sector and the Meat Processing sector.
EPA will work with additional sectors using the Sustainable Industry process to develop incentives,
create tools, test innovative ideas, and remove barriers to improved environmental performance with
reduced regulatory burden. In 2001, the Agency will complete its Sustainable Industry work with
the Shipbuilding/Ship Repair and Specialty-Batch Chemical industry sectors, and will identify
several new industry partners for that sector process.

      In the process of developing sectoral approaches, EPA will continue to add to the set of tools
it uses to effectively and efficiently deliver environmental quality, promote pollution prevention, and
increase  risk reduction.  While EPA continues to rely on  standard setting, permitting  and
enforcement, these traditional tools are now often augmented by compliance assurance, voluntary
programs, stakeholder involvement and many new sector-based processes and programs designed
to  ensure quicker or more effective results.  In support of these strategies, EPA will continue to
implement projects that offer  flexibility or  other benefits to  test innovative approaches to
environmental protection.

      In 2001, the Agency will create a more comprehensive program that addresses the unique and
diverse needs of the small business community, which includes manufacturing, high tech industry,
and the service sector. We will build on our 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.

      The Agency will continue to take a leadership role in addressing issues that affect broad
sectors of the economy. The Agency will continue to promote positive changes in sectors that affect
community environmental quality through the development of analytic tools and the collaborative
exchange of information. These tools assist local governments in integrating their environmental
goals with other goals associated with conservation, development and growth.

      Finally, the Agency will more effectively integrate and manage EPA's resources and efforts
that are currently available for  promoting environmental  quality at the  community level.  The
Agency will work to ensure that those communities pursuing development strategies that incorporate
environmental quality considerations receive appropriate credit under the Agency's core program
areas - air quality, water quality, waste management. Under this goal, the Agency will  focus on
improving environmental quality  by:  (1)  removing barriers  and creating  incentives  for
environmentally beneficial development; (2) developing tools  and technical assistance (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

                                         VIII-52

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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 to help them address the
environmental issues associated with growth and development, we have increased our activities
under urban sprawl.  We will integrate smart growth approaches to environmental quality and
voluntary smart growth programs within key program offices and regional offices. In response to
their requests, we will help states and local governments achieve their environmental goals, using
smart growth approaches.   We will  also develop regulatory incentives that  will encourage
redevelopment within metropolitan areas and help preserve watersheds, open space, and habitats on
edge. These  incentives will also encourage more environmentally-friendly development in rural
areas.

FY 2001 Change from FY 2000 Enacted

MULTI-APPROP

      (45,750,000 EPM, -$1,450,000 S&T)  Resources are not provided for Congressional
      earmarks.

EPM

•     (+$3,373,000,+5.1 FTE) Reflects support for the Urban Sprawl initiative. This program was
      transferred from the Office of Congressional and Intergovernmental Relations (Goal 7,
      Objective 3) to the new Office of Policy, Economics, and Innovation (Goal 8, Objective 7).

      (+$490,200, +2.0 FTE) Reflects support for Sectors work.

•     (+$214,000) Reflects increased workforce costs.


Annual Performance Goals and Performance Measures

CSI/ProjectXL

In 2001     EPA will develop the next phase program for identifying, implementing & evaluating pilot
          projects based on the Project XL pilot program.

In 2000    All 50 Project XL projects will be in implementation

In 1999    In FY1999, EPA signed  5 new XL Agreements, bringing the number of projects in
          implementation to 15. An additional 36 XL proposals were either under development or in
          negotiation. Thus, 51 XL projects were being implemented or developed to FY1999.
                                        VHI-53

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Performance Measures:                            FY 1999       FY 2000        FY 2001
                                              Actuals        Estimate        Request

Number of Project XL projects in implementation
 or development                                 51             50                      projects


Transition Project XL to next phase pilot program                                   1          strategy

Baseline:   Initial strategy will be developed in FY 2001.

Statutory Authorities

National Environmental Policy Act

The Economy Act of 1932

TSCA sections 4, 5, and 6 (15 U.S.C. 2603,2604, and 2605)

PPA(42U.S.C. 13101-13109)

CWA
                                          Vffl-54

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                          Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

          Sound Science, Improved Understanding of Environmental Risk, and
                Greater Innovation to Address Environmental Problems
Objective #8: Regional Enhancement of Ability to Quantify Environmental  Outcomes

      By 2005, Regions will have demonstrated capability to assess environmental conditions in
their Region, compare  the relative risk of health and ecological problems, and  assess the
environmental effectiveness of management action in priority geographic areas.
                                 Resource Summary
                                 (Dollars in thousands)

Regional Enhancement of Ability to Quantify
Environmental Outcomes
Environmental Program & Management
Hazardous Substance Superfund
Total Workyears
FY 1999
Enacted
$6,732.0
$3,599.1
$3,132.9
9.2
FY2000
Enacted
$6,089.0
$2,948.8
$3,140.2
5.5
FY2001 FY2001Req.v.
Request FY 2000 Ena.
$7,756.8
$4,328.3
$3,428.5
4.1
$1,667.8
$1,379.5
$288.3
(1.4)
                                   Key Programs
                                 (Dollars in thousands)
                                                 FY1999
                                                 Enacted
          FY2000
          Enacted
          FY2001
          Request
Regional Science and Technology
$5,951.7
$6,111.3
$7,156.8
                                       VIII-55

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FY 2001 Request

       The Regional Science and Technology (RS&T) Program supports the Agency's overall
mission to protect human health and safeguard the natural environment by providing a sound science
foundation upon which to base its decisions.

       The role of RS&T in implementing this goal is to continue to provide field sampling,
analytical and data management support, including quality assurance to base program needs
operating within the regions before and after implementation of statutory mandates, community-
based environmental protection, sector-based and geographically targeted initiatives.

       "Centers of Applied Science" have been established to develop sampling, quality assurance
and analytical methods to support assessment of emerging environmental issues. This will include
the development and application of new and innovative technologies such as toxic and ambient air
analyses  for the national PAMS program states' air monitoring programs, alternative methods for
organic extraction techniques to reduce or eliminate the quantity or toxicity of waste, trace level
dioxin/furan  analyses,  new  methods  for the identification and quantification  of microbial
contaminants (Cryptosporidium and Giardid) and trace level PCB congeners in sediment matrices.
These methods and technologies will be shared within EPA and with partner agencies.

       Data and information management systems will be in place, including dataqudity 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 2001 Change from FY 2000 Enacted

MULTI-APPROP

       (+$1,479,500 EPM, +$288,300 SF) Reflects restoration of support for the Environmental
       Service Division laboratories.

EPM

•      (-$ 100,000, -1.4 FTE) Reflects decreased emphasis in regional activities under this obj ecti ve


Statutory Authorities

Multi-media
                                        VIII-56

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

           Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems


Objective # 9:  Science Advisory Board Peer Review

       Conduct peer reviews and provide guidance on the science underlying Agency decisions.
                                  Resource Summary
                                  (Dollars in thousands)
                                        FY 1999
                                        Enacted
          FY2000
          Enacted
FY2001
Request
FY2001Req.v.
 FY2«OOEna.
Science Advisory Board Peer Review

   Environmental Program & Management

       Total Workyears
S2.486.7       $2,861.7       $2,674.0       ($187.7)

$2,486.7       $2,861.7       $2,674.0       ($187.7)

   22.5          22.5         22.5           0.0
                                     Key Programs
                                  (Dollars in thousands)
                                                     FY1999
                                                     Enacted
                      FY2000
                      Enacted
             FY2001
             Request
Science Advisory Board
               $0.0
   $2,860.6
      $2,674.0
FY 2001 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 Congressionaland other
leadership interests.
                                         VIII-57

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      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-
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 come from a broad
range of disciplines — physics, chemistry, biology, mathematics, engineering, ecology, economics,
medicine, and other fields. Operating under the Federal Advisory Committee Act (F AC A), the SAB
empanels technically strong and diverse groups to ensure a balanced range of technical views from
academia, communities, states, independent research institutions, and industry.

      To truly make a positive difference in the production and use of science at EPA, the Board
must do more than review Agency products from traditional line offices.  It must help the Agency
make strategic use of science.  Science alone is insufficient for making environmental decisions, but
it is impossible to protect human health and the environment without science.

       Economic and other social science issues are particularly important now that EPA is
experimenting  with new information-based, voluntary approaches to environmental protection —
such as working with stakeholders in communities and sectors to achieve environmental goals that
voluntarily go  beyond the national standards.  Therefore, the SAB will find effective ways for
science to contribute to the Agency's new ways of doing business.

FY 2001 Change from FY 2000 Enacted

EPM

•     (-$187,800) Reflects a recalculation of payroll costs.


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 Pane (SAP),  and the Children's Health Protection Advisory
Committee participate in the quarterly meetings of the SAB Executive Committee (EC) meetings.
There are also membership contacts and exchanges with technical advisory bodies in the Department
of Defense, Department of Energy, and the National Research Council of the National Academy of
Sciences. In addition, the Board has sought interactions with advisory groups at different levels
(e.g., the advisory committee to the Mayor of Columbus, Ohio, the environmental advisory board
                                       Vffl-58

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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 a various levels of government — from the local  level to  the
international level.

Statutory Authorities

Federal Advisory Committee Act (5 UJS.C. App.)
                                        VIII-59

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                           Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

           Sound Science, Improved Understanding of Environmental Risk, and
                 Greater Innovation to Address Environmental Problems

Objective # 10: Incorporate Innovative Approaches to Environmental Management

      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)

                                       FY1999      FY2000     FY2001   FY2001Req.v.
                                 	Enacted	Enacted	Request    FY200QEna.
Incorporate Innovative Approaches to
Environmental Management

Environmental Program & Management

       Total Workyears
$4,056.9     $4,210.7     $4,940.4
                                       $729.7
$4,056.9      $4,210.7     $4,940.4        $729,7

   20.3          22.7        22.7           0.0
                                     Key Programs
                                  (Dollars in thousands)
                                                  WY1999
                                                  Enacted
                     FY2000
                     Enacted
                                   FY2001
                                   Request
Reinvention Programs, Development and Coordination
           $4,334.1
                        $4,146.9
$4,868.8
FY 2001 Request

      Reinvention has been a broad-based, Agency-wide strategy for achieving cleaner, cheaper,
smarter results from environmental programs. By rethinking problems and the solutions typically
used to solve them, reinvention engages Agency managers and staff, as well as external stakeholders,
in finding better ways of doing business without imposing unnecessary costs and regulatory burdens.
EPA has developed  a dual strategy for reinventing environmental protection:  (1) innovating and
                                        ¥111-60

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streamlining the current regulatory system (e.g., consolidate and simplify regulations and reporting
requirements, and streamline permitting), and (2) designing and testing integrative and holistic
approaches (e.g., sector- and industry-based approaches, and community-based environmental
protection, partnership programs). Through reinvention, EPA is implementing strategies that lead
to better protection at less cost, and is moving beyond the single-media focus of the past to better
address today's environmental challenges.

       The Reinvention office will serve as a primary gateway for stakeholders/customers to use in
interacting with EPA on reinvention and will define the vision, strategy, ground rales, and principles
for reinvention by engaging stakeholders.  The office will ensure new approaches are identified,
designed,  and piloted by  program-specific approaches in other EPA  offices and  manage
Agency-wide approaches in the Office of Reinvention. Integratingand coordinating new approaches
across the Agency into a coherent strategy for change, tracking reinvention progress and evaluating
reinvention success, and ensuring successful new approaches are incorporated into the way EPA
does business will also be a focus of the Office of Reinvention.

       With extensive input from its stakeholders, EPA refined and focused its reinvention agenda
in July of 1999 in the report, [Mimingfor Excellence. D Two broad themes anchor that report: "EPA
needs to do more to help organizations comply with the law; and EPA needs to encourage those who
are willing and able to do more." (p. 4) The report commits EPA to ten "Key Actions," including
using incentives and voluntary partnerships more widely; promoting the use of environmental
management systems; developing a performance track; helping communities with environmental
problem-solving, and supporting states, tribes, and communities in finding  local solutions to
livability issues. The Agency has aligned its policy and reinvention capabilities to strengthen its
ability to carry out these commitments and to bolster innovation across EPA.

       In 2001, EPA will work to provide incentives and rewards to good environmental performers
in the business community. A performance track program will be developed,  so that those
businesses that perform well are treated differently from those that do not  EPA will continue to
pursue reforms in  the permitting system and to develop policy on the role of environmental
management systems in environmental regulation.

       Using lessons learned from recent initiatives, EPA will  undertake projects suggested by
internal or external stakeholders that test ways to modify EPA's core programs to foster flexibility
(in regulations, policy, and guidance) as incentives and to gain superior environmental performance.

       Taken together with related work across the Agency, this approach is designed to promote
a systematic process of experimentation, evaluation, and program change in response to the lessons
learned from innovation.
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FY 2001 Change from FY 2000 Enacted

EPM

•     (+$723,200) Reflects restoration of administrative and Working Capital Fund resources in
      the Office of Policy, Economics, and Innovation (formerly the Office of Reinvention).


Statutory Authorities

Multi-media
                                       VIII-62

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Goal 9: Credible Deterrent

-------
Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 9: A Credible Deterrent to Pollution and Greater Compliance with the Law	DC-1
       Enforcement Tools to Reduce Non-Compliance	IX-6
       Increase Use of Auditing, Self-Policing Policies  	DC-37

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                           Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

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

                                  Resource Summary
                                 (Dollars in Thousands)
                                       FY1999        FY2000       FY2001    FY 2001 Req. v.
                                       Enacted	Enacted	Request    FY 2000 Ena.
    Goal 09  A Credible Deterrent to Pollution      $322,088.2
           and Greater Compliance with the
           Law

    Obj, 01  Enforcement Tools to Reduce Non-      $279,217.7
           Compliance
    Obj. 02  Increase Use of Auditing, Self-          $42,870.5
           Policing Policies
                  Total Workyears              2,587.8
$372,755.6
5403,771.5
$323,338.2    $351,306.7

 $49,417.4     $52,464.8

   2,570.8      2,572.7
$31,015.9



$27,968.5

 $3,047.4

     1.9
Background and Context

       Protecting the public and the environment from risks posed by violations of environmental
requirements is, and always has been, basic to EPA's mission. Many of America's environmental
improvements over the last 25 years  are attributable to a strong set of environmental laws and an
expectation of compliance with those laws. EPA's strong and aggressive 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 three decades can
be attributed to a strong set of environmental laws and EPA's aggressive enforcement of them. 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 non-compliance problems, punishes violators, strives to secure a level economic playing
field for law-abiding companies, and deters future violations. EPA's continued enforcement efforts
                                         IX-1

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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 non-compliance and include disproportionately exposed populations.

       State, tribal and local governments bear much of the responsibility for ensuring compliance,
and EPA works in  partnership with them and other Federal agencies to promote environmental
protection.   Further, EPA cooperates  with other nations to enforce and ensure environmental
regulations compliance. At the Federal  level, EPA addresses its responsibilities under the National
Environmental Policy Act (NEPA) by  seeking remedies for potentially adverse impacts of major
actions taken by EPA and other Federal agencies.

       The Agency's enforcement and compliance assurance program uses voluntary compliance
assistance and incentive tools to ensure compliance with regulatory requirements and reduce adverse
public health and environmental problems.  Because government resources are limited, maximum
compliance requires the active efforts of the regulated community to police itself.  EPA supports the
regulated community by assuring that requirements are clearly understood and by helping industry
find cost-effective  options to comply through the use of pollution prevention and innovative
technology.  EPA will continue to investigate options for encouraging self-directed audits and
disclosure; measure and evaluate the effectiveness of Agency programs in improving compliance
rates; provide information and compliance assistance to the regulated community; and develop
innovative approaches to meeting environmental standards through better communication,
cooperative approaches and application of new technologies.
Strategic Objectives and FY 2001 Annual Performance Goals

Objective 01: Enforcement Tools to Reduce Non-Compliance

»      Maintain and improve quality and accuracy of EPA's enforcement and compliance data to
       identify noncompliance and focus on human health and environmental problems.

•      Improve capacity of states, localities and tribes to conduct enforcement and compliance
       programs. EPA will provide training as well as assistance with state and tribal inspections
       to build capacity, including implementation of the inspector credentials program for tribal
       law enforcement personnel.

«      EPA will direct enforcement actions to maximize compliance and address environmental and
       human health problems; 75% of concluded enforcement actions will require environmental
       or human health improvements such as pollutant reductions and/or changes in practices at
       facilities.
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*      EPA will conduct  15,000 inspections, 550 criminal  investigations, and 150  civil
       investigations targeted to areas that pose risks to human health or the environment, display
       patterns of non-compliance or include disproportionately exposed populations.

•      Ensure compliance with legal requirements for proper handling of hazardous waste imports
       and exports.

Objective 02:  Increase Use of Auditing, Self-Policing Policies

•      Increase opportunities through new targeted sector initiatives for industries to voluntarily
       self-disclose and correct violations on a corporate-wide basis.

•      Promote  the use  of Environmental Management Systems (EMS) to address known
       compliance and performance problems.
Highlights

Compliance Monitoring and Civil and Criminal Enforcement

       EPA will continue to support deterrence and compliance activities by devoting a vast
maj ority of its compliance monitoring resources for on-site inspections and investigations including
monitoring, sampling and emissions testing.  In 2001, the compliance monitoring program will
continue the cross-cutting, multi-media initiatives begun in 1999 which make full use of the
Agency's statutory authorities.

       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. Further, the
program aims to level  the economic playing field by ensuring that violators do not reali2e an
economic benefit from non-compliance and seeks to deter future violations. In 2001, the Agency's
enforcement initiatives  include continued enforcement of regulated sources contributing to beach
and shellfish area closings, in support of the Clean Water Action Plan (CWAP), enforcement of the
lead paint rules, and modernization of its data systems to assist in targeting  compliance and
enforcement efforts.

Compliance Incentives  and Assistance

       The Agency will  continue to  support the regulated  communities' compliance with
environmental requirements through voluntary compliance incentives and assistance programs. In
2001, the compliance incentives program will continue to implement the policy on Incentives for
Self-Policing as a core element of the enforcement and compliance assurance program. In addition,
the Agency will provide information and technical assistance to the regulated community through
the compliance assistance program to increase its understanding of all statutory or regulatory


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environmental requirements, thereby reducing risk to human health and the environment and gaining
measurable improvements in compliance. The program will also continue to develop strategies and
compliance assistance tools that will support initiatives targeted toward improving compliance in
specific industrial and commercial sectors or with certain regulatory  requirements.

State and Tribal Capacity

       A strong state and tribal enforcement and compliance assurance presence contributes to
creating deterrence and to reducing non-compliance. In 2001, 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.
External Factors

       The Agency enforcement program's ability to meet its annual performance goals may be
affected by a number of factors. Projected performance would be impacted by natural catastrophes,
such as major floods or significant chemical spills, that require a redirection of enforcement
resources to address immediate environmental threats. Many of the targets are predicated on the
assumption that state  and Tribal partners will continue or increase their levels of enforcement and
compliance work. If these assumptions do not come to fruition, EPA's resources may be needed to
cover priority areas. In addition, several EPA targets rely on the Department of Justice to accept and
execute case loads. The success of EPA's activities hinge on the availability and applicability of
technology and information systems. Finally, the regulated community's willingness to comply with
the law will greatly influence EPA's ability to meet its performance goals.

       Other factors  such as the number of projects subject to scoping requirements initiated by
other federal agencies,  the number of draft/final documents (Environmental Assessments and
Environmental Impact Statements) submitted to EPA for review, streamlining requirements of
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.
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       The Agency's ability to address issues under the National Environmental Policy Act (NEPA)
may be significantly affected by the number of project proposals submitted to EPA for funding or
permits that require NEPA compliance.
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                             Environmental Protection Agency


            FY 2001 Annual Performance Plan and Congressional Justification


          A Credible Deterrent to Pollution  and Greater Compliance with the Law



Objective # 1:  Enforcement Tools to Reduce  Non-Compliance


       Identify and  reduce significant non-compliance in high priority  program areas, while
maintaining a strong enforcement presence in all regulatory program areas.



                                     Resource Summary
                                    (Dollars in Thousands)


                                          FY1999       FY2000       FY2001     FY2001Req.v.
	Enacted	Enacted	Request	FY 2000 Ena.

Enforcement Tools to Reduce Non-Coinpliance        $279,217.7     $323338.2     $351,306.7      $27,968.5

    Environmental Program & Management            $188,095.7     $228,874.7     $253,363.1       $24,488.4


    Science & Technology                          $8,583.9       $9,677.7       $10,631.7        $954.0

    State and Tribal Assistance Grants                 $67,884.4      $68,284.3       $68,284.3           $0.0

    Hazardous Substance Superfund                  $14,653.7      $16,501.5       $19,027.6       $2,526.1

       Total Workyears                            2,144.1        2,148.2        2,149.2           1.0
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                                    Key Programs
                                 (Dollars in Thousands)

Civil Enforcement - CWAP/AFO Related
RCRA State Grants
Compliance Monitoring
Civil Enforcement
Criminal Enforcement
Compliance Assistance and Centers
Enforcement Training
State Pesticides Enforcement Grants
State Toxics Enforcement Grants
Rent, Utilities and Security
Administrative Services
Regional Management
FY1999
Enacted
$0.0
$43,222.7
$57,462.0
$83,650.4
$34,436.5
$36.6
$3,804.0
$19,511.7
$5,149.6
$0.0
$1,521.4
$0.0
FY 2000
Enacted
$935.6
$43,222.7
$56,404.2
$82,350.9
$37,128.8
$0.0
$5,705.4
$19,911.6
$5,150.0
$35,123.3
$4,400.6
$900.2
FY2001
Request
$1,008.6
$43,222.7
$67,519.5
$92,090.1
$41,530.2
$0.0
$5,728.2
$19,911.6
$5,150.0 0
$40,847.2
$4,630.1
$971.6
FY 2001 Request

       Protecting the public and the environment from risks posed by violations of environmental
requirements is, and always has been, basic to EPA's mission. The Agency's strong and aggressive
enforcement program has been the centerpiece of efforts to ensure compliance, 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 toward continuous improvement hi compliance with standards, permits and other
requirements established by EPA to mitigate and avoid environmental problems and the associated
risk.

       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 enforcement and compliance activities to address the most
significant risks to human health and the environment and to address disproportionate burden on
certain populations. A  strong enforcement and compliance program achieves  environmental
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protection by identifying non-compliance problems, punishing violators and deterring future
violations, while ensuring a level economic playing field for law-abiding companies.

       State, tribal and local governments bear much of the responsibility for ensuring compliance,
and EPA will work with them 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.

       In 2001, the Agency's enforcement and compliance assurance program will measure its
performance not only in terms of inspections, enforcement actions and pollutant reductions, but also
in terms of human health and environmental outcomes the program produces. This annual plan
contains new annual performance goals and measures to show results such as reducing significant
non-compliance and returning  violators to compliance and  behavioral changes  resulting from
compliance assistance efforts. These new measures will complement the traditional enforcement
measures and portray a more complete picture of the environmental results of the enforcement and
compliance assurance program.

       The enforcement and compliance assurance key program areas for this objective follow:

Compliance Monitoring

       EPA's compliance monitoring program requests a total of 564.2 workyears and S67,519,500
to review and evaluate the activities of the regulated community to determine compliance with
applicable laws, regulations, permit conditions and settlement agreements and to determine whether
conditions presenting irnminerit and substantial endangerment may exist.  The vast majority of
workyears devoted to compliance monitoring is provided to the Regions to conduct investigations
and on-site inspections  including monitoring, sampling and emissions testing.  Compliance
monitoring activities are both environmental media- and sector-based. The traditional media-based
inspections are a key strategy for meeting the long-term and annual goals established for the air,
water, pesticides, and hazardous waste environmental goals included in the EPA Strategic Plan.  The
multi-media approaches, such as cross-media inspections, sector initiatives, and risk-based targeting
allow the Agency to take a more holistic approach to protecting ecosystems and to solving the more
intractable environmental problems.

       In 2001, the compliance monitoring program will continue to target areas that pose risks to
human health or the environment, display patterns of non-compliance, 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 2000/2001 guidance, developed in conjunction with the Regional  offices. These
national priorities include:

•      Supporting the Clean Water Action Plan by monitoring compliance with wet weather
       requirements, such as overflows from combined sewers or sanitary sewers, concentrated
       animal feeding  operations, and storm water run-off.

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•      Ensuring compliance with the drinking water regulations that deal with microbial
       contamination and, per the Clean Water Action Plan, increasing activities in watersheds
       where sources of drinking water are contaminated or threatened.

*      Targeting companies which handle hazardous waste illegally  by evading the RCRA
       regulatory system.

*      Continuing to focus on the petroleum refining sector and a new focus on the metal services
       industrial sector.

       In 2001, EPA estimates that it will conduct 15,000 inspections and 550 civil and criminal
investigations targeted to areas that pose risks to human health or the environment, display patterns
of noncompliance or include disproportionately-exposed populations.  In 2001, EPA intends to
conduct 50% of its inspections and investigations in national and regional priority areas.

       To address the dangers of childhood lead-poisoning, EPA will invest  support Senior
Environmental Employment (SEE) inspectors in the Regions. The SEE enrollees will conduct
inspections. Inspections will target child-occupied facilities, built prior to 1978, in low-income and
minority neighborhoods and areas of older housing to ensure compliance with the lead-based paint
rules addressing disclosure, pre-renovation, training and certification and lead debris. The inspectors
will conduct approximately 4,200  inspections per year of up to 18,000 housing units.

       The Federal facility  enforcement  program monitors the compliance  of Federal agency
operations with all applicable environmental laws, regulations, permits and executive orders. 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.  The program will use all
available enforcement authorities (e.g., RCRA, SDWA, UST, C AA, TSCA Sec. 408) to remedy non-
compliance. EPA headquarters will provide targeting data to the Regions to use in conducting
inspections and extramural resources to support inspections and audits at Federal facilities.

       Reliable, comprehensive and up-to-date data systems are key to EPA's ability to effectively
target compliance  monitoring at the highest priority  facilities  and areas and to measure the
effectiveness of its enforcement activities.  EPA will continue to maintain and support the fourteen
information systems that house national enforcement and compliance data with less than 5% down-
time. Moreover, EPA will continue its effort to improve the quality of compliance and enforcement
data by developing Quality Management Plans for five of its data systems in 2001.

       In addition, a major focus  of the 2001 compliance monitoring program is the full-fledged
implementation of the General Enforcement Management System (GEMS), the centerpiece of the
Agency's Enforcement and Compliance Information initiative.  In 2001, the Agency will invest
$2,600,000 hi GEMS which is 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. As the first major data integration system to be developed by EPA,
GEMS will consolidate and  streamline enforcement and compliance information that is currently

                                         IX-9

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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 joint modernization
of the Permit Compliance System (which serves the permitting and enforcement program needs of
the National Pollutant Discharge Elimination System) will support full implementation of GEMS
in 2002. In 2001, EPA intends to complete GEMS programming development and begin system
testing as well as to complete detailed design for the Permit Compliance System modernization.

Civil and Criminal Enforcement

       The Agency's civil and criminal enforcement program requests a total of 1,246.7 workyears
and $133,620,300 to address violations of environmental laws and ensuring that violators come into
compliance with these laws and regulations. The civil enforcement program supports the National
Environmental Goals through consistent and focused enforcement of all environmental statutes. The
civil enforcement program's overarching goal 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 non-
compliance, and seeks to deter future violations.

      The civil enforcement program is responsible for the development, litigation and settlement
of administrative and civil judicial cases. In 2001, program management will provide direction to,
set goals and priorities for, and evaluate and review the national enforcement program which will
be largely implemented by the Regions.  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. The
Agency will provide expert advice and legal counsel on nationally significant enforcement actions
and will initiate investigations against violators operating nationally. Further, enforcement staff will
participate in the development of, or revision to, regulations and interpretive guidance to ensure they
are enforceable.

      hi  2001, EPA will  direct  enforcement actions to maximize compliance and address
environmental and human health problems.  Efforts will be focused on the priority areas established
for the  national program through the Office of Enforcement  and Compliance Assurance's
Memorandum of Agreement (MOA) 2000/2001  guidance, developed hi conjunction with the
Regional offices. MOA priorities and the efforts that will be taken to support them include:
»      Support of the Clean Water Action Plan

      The National Pollution Discharge Elimination System (NPDES) program will maintain a
      strong enforcement presence in traditional areas and will continue moving into newer areas,
       supporting the Clean Water Action Plan.  Traditionally, the program's compliance and
      enforcement efforts  have been focused on the approximately 6,900 major facilities.
      However, the program is moving to address other facilities which, through their non-
      compliance, have major impacts on public health and the environment.  These include
      municipalities with  either  combined sewer  or sanitary  sewer overflows,  stormwater

                                        IX-10

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       dischargers, and concentrated animal feeding operations. Run-off from wet weather (i.e.,
       overflows from combined sewers, sanitary sewers, discharges and run-off from concentrated
       agricultural feeding operations (CAFO's) and storm water run-off) is a leading cause of water
       quality impairment and can represent a significant threat to public health.  Sewer overflows
       contain bacteria and other pathogens which lead to illness and can lead to beach and shellfish
       bed closures.  The CAFOs can pose a number of risks to water quality and public health
       particularly as a result of large storm events.

•      Ensuring compliance  with  the drinking  water regulations  that deal  with microbial
       contamination and, per the Clean Water Action Plan, increasing activities in watersheds
       where sources of drinking water are contaminated or threatened.

       EPA will continue to place the majority of its safe drinking water efforts on the public water
       system supervision program.  In this program, EPA will  maintain as its priority those
       regulations dealing with the microbiological quality of drinking water.  The effects of
       contaminated drinking water can be severe, especially on children, the elderly, and persons
       with compromised immune systems. Adverse effects of microbial contamination include
       gastrointestinal distress, fever, pneumonia, dehydration (which can be life threatening), or
       death.

       EPA's wetlands enforcement program will continue to target those violators which have a
       significant impact on the  environment.  EPA will continue to support the Clean Water
       Action Plan goal of a net increase of 100,000 acres of wetlands per year by 2005. EPA
       contributes to this through its enforcement actions by obtaining in settlements restoration
       of wetlands acres destroyed, mitigation projects where restoration is not possible, and
       preservation of wetlands acres.

•      Targeting  companies which handle hazardous waste  illegally by evading  the  RCRA
       regulatory system.

       The RCRA enforcement program will continue to focus on those facilities that have evaded
       the RCRA regulatory program and, as a result, are managing hazardous waste in a manner
       that threatens human health and the environment. In particular, the program will concentrate
       on the mineral processing sector, foundries, and fertilizer manufacturers.
       In addition to efforts supporting the MOA priorities, the Agency will continue to maintain
       and strengthen the core enforcement program.  Significant core activities include but are not
       limited to:

       •     efforts to prevent chemical accidents which will be accomplished by enforcement of
             the accidental release provisions of the Clean Air Act and by responding to situations
             that may present an imminent and substantial endangerment to human health or the
             environment with quick enforcement actions.
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       *     multimedia investigations of larger corporations doing business in more than one
             Region and violating more than one environmental statute support the Agency goal
             of increasing the number of concluded enforcement actions that result in improved
             facility management practices. In addition to large penalties, the injunctive relief
             provided in these cases has resulted in environmental benefits and corporate change
             with respect to environmental management practices which are well beyond that
             achievable if the Cases were brought in single-media or facility by facility isolated
             manner.

       •*     focus on industries that evade Clean Air Act regulatory programs, thereby causing
             excess emissions that jeopardize attainment of the National Ambient Air Quality
             Standards and placing complying industries at a competitive disadvantage. Initiatives
             under this category include targeting of stationary sources that violate "New Source
             Review" or Prevention of Significant Deterioration" (NSR/PSD) requirements, and
             the use of defeat devices and other approaches that prevent compliance with motor
             vehicle emissions standards.

       «     enforcement and implementation of residential lead-based paint homeowner/lessor
             right-to-know regulatory requirements to  prevent childhood lead poisoning.  The
             program will target urban residential areas where children have elevated blood lead
             levels. Childhood lead-based paint poisoning is the greatest environmental health
             threat to children, afflicting as many as 3,000,000 children under the age of 6 years,
             with   minority  and   low-income   communities  disproportionately   affected.
             Approximately 64 million homes may contain lead-based  paint that may  pose a
             hazard to the occupants if not managed properly.

       »     monitoring and enforcing against hospital disinfectants which are not capable of
             achieving efficacy claims as described on their labels.

       The Federal facilities enforcement program will continue to ensure that Federal facilities and
Government-Owned-Contractor-Operated  (GOCO) facilities  conduct their activities  in  an
environmentally sound manner and comply with  all  applicable laws, regulations, permits and
executive orders.  EPA will continue  to  use  all available enforcement authorities  to  ensure
compliance, particularly in those areas where EPA has clarified enforcement authorities.

       The criminal enforcement program is another important aspect of the Agency's enforcement
efforts. The number of EPA's criminal investigators is mandated by the Pollution Prosecution Act.
The program brings to bear the Agency's most powerful enforcement  tool against the most
significant environmental violations. By demonstrating to the regulated community that serious,
willful statutory violations will be met with harsh sanctions, in terms of both fines and jail sentences,
the program acts to forcefully deter violations of environmental laws and regulations in a way that
civil judicial and administrative enforcement rarely can do. EPA's special agents, located
nationwide, will conduct criminal investigations, develop information to support grand jury inquiries


                                         IX-12

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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.

       In 2001,  the criminal  program requests a total of 297.9 workyears and $41,530,200 to
continue to support Agency enforcement initiatives including priority sectors, environmental justice
and the Children's Health initiative. 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, hi good faith, will reap the
benefits of that partnership while those whose non-compliance is distinguished by culpable conduct
can expect the serious implication of criminal investigation and prosecution. As the Agency's
criminal program continues to gain experience, success in piercing the corporate veil will result in
increasing numbers of individual defendants.

       Specialized forensic support for the nation's most complex civil and criminal enforcement
cases and technical expertise for non-routine Agency compliance efforts will  be provided by the
National Enforcement Investigation Center (NEIC). To effectively support these programs, NEIC
must  maintain state-of-the-art skills and equipment, capable of dealing  with  an increasingly
sophisticated regulated community.

       In 2001, the Agency will begin development hi a new facility for the National Enforcement
Investigations Center in Denver, Colorado.  NEIC will continue to develop emerging technologies
in analytical techniques.  Efforts to stay at the forefront of environmental  enforcement will include
the refinement of successful multi-media inspection approaches, use of customized lab methods to
solve unusual enforcement case problems, and further development of a computer forensic expertise
for use in seizure and recovery of data and in investigative support related to computers and data
fraud.  The Center's lab, field and information activities will continue to be performed with the
scientific integrity necessary to withstand technical scrutiny and cross-examination, developing
evidence which meets all legal requirements for successful prosecution of civil and criminal  cases.
The new facility will support these efforts by providing a state-of-the-art testing environment which
will ensure the certainly of measurements made and the quality of any environmental enforcement
case.

       The NEIC will provide technical support for the initiatives identified as 2001 priorities in the
civil program. The NEIC will support the Agency's integrated compliance monitoring program
which views the regulated community on a multimedia basis within the context of an industrial
sector or geographic area. Using screening and targeting methodologies developed at the NEIC, EPA
inspectors will direct compliance monitoring at areas with the greatest potential for risk reduction.
NEIC staff will also conduct on-site multimedia and process based inspections, resulting in increased
compliance by many of the nation's largest and most complex industries.
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       In 2001, the civil and criminal enforcement programs have developed new performance
measures. In addition, to measuring pollutant reductions and improvements in facility management
practices, EPA will also measure progress in reducing significant non-compliance recidivism in the
Clean Air  Act, Clean Water Act, and Resource Conservation and Recovery Act programs and
increase facilities that return to full physical compliance in less than two years for these same
programs.

State and Tribal Capacity

       A strong state and tribal enforcement and compliance assurance presence contributes to
EPA's long-term strategic plan objective to identify and reduce significant non-compliance 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 2001, the enforcement and compliance assurance program
will work with and  support state agencies implementing authorized, delegated, or approved
environmental programs. 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 2001, the enforcement
and compliance assurance program will continue to implement the Indian Program Strategy which
will direct federal enforcement and tribal enforcement and compliance capacity-building efforts. By
monitoring and evaluating progress made, EPA will ensure that the plan's commitments are met in
a timely fashion. These efforts will help implement the Agency-wide Indian Policy of working with
tribal governments as full partners to enhance protection of the public health and the environment
on tribal lands.

       The state and tribal grant programs are designed to  build environmental partnerships with
states and tribes and to strengthen their ability to address environmental and public health threats.
These threats include contaminated drinking water, pesticides in food, hazardous waste, toxic
substances and air pollution. The enforcement and compliance assurance program will award over
$25 million in state and tribal enforcement grants in 2001  to assist in the implementation of the
enforcement provisions of the Toxic Substances Control Act (TSCA) and the Federal Insecticide,
Fungicide and Rodenticide Act (FIFRA). These grants support state and tribal compliance activities
to protect the environment from harmful chemicals and pesticides. The enforcement component of
RCRA state grants is also included in this objective.

*      Under the Pesticides Enforcement Grant program, states will continue to conduct FIFRA
       compliance inspections and take appropriate enforcement actions, and implement programs
       for farm worker protection.  The 2001 program will continue to address the increased
                                        TX-14

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       workload placed on the states as a result of the Food Quality Protection Act. The food safety
       program is almost entirely a state run program.  States will use these resources to increase
       their inspections of pesticides newly regulated by the legislation.

•      In 2001 the Agency will provide pesticides enforcement grants to assist Indian tribes. The
       Agency provides funding to tribes to  implement pesticide compliance and enforcement
       programs on tribal lands where states have no enforcement authority. Over twenty tribes are
       participating in this grant program in 2000, using the grants to build compliance and
       enforcement programs for   pesticide standards, regulations,  and other requirements
       established under tribal law.

•      States will receive toxic substances state grants funding for implementation of the state lead
       enforcement program. The funds will complement other Federal program grants for building
       state capacity for lead abatement. States will also continue to receive funding for compliance
       and enforcement of asbestos and PCBs.

•      States will 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.

       In 2001, the Agency's enforcement and compliance assurance program will continue to work
with state and tribal organizations (agencies  and associations) to promote communication and
cooperation that strengthens these partnerships.  The program will participate in regular meetings
and encourage other formal contacts between senior managers on enforcement and compliance
assurance issues and promote a constructive dialogue with state co-regulators on enforcement and
compliance policy development and program planning. Consistent with its commitments articulated
in the Indian Program Strategic Plan, EPA will ensure that tribal governments are informed about
relevant policies, guidance and other enforcement program information.

       Training is an important aspect of state, local and tribal capacity building. The National
Enforcement Training Institute (NETI) is mandated by the Pollution Prosecution Act to provide
environmental enforcement training nationally. In 2001, NETI will oversee the design of core and
specialized enforcement courses and their delivery to lawyers,  inspectors,  civil and criminal
investigators and technical experts. Also, NETI will deliver 220 training classes and seminars. In
seeking to provide timely, targeted technical training courses to as wide an audience as possible,
NETI will expand access to its program by building a training center on the Internet. "NETI Online"
will offer training to Federal, State, local and tribal enforcement professionals. The website will
provide the structure for developing and tracking individual training plans, as well as managing
NETPs training delivery processes. In addition, the Agency provides specialized training in criminal
environmental law enforcement at the Federal  Law Enforcement Training Center (FLETC) in
Glynco, GA, FLETC is operated by the Department of the Treasury and was established to train law
enforcement personnel who carry firearms.  The site has entered into an agreement with Treasury


                                        IX-15

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to arrange  training  in  environmental  criminal investigations for state,  local and tribal law
enforcement professionals as well as EPA criminal enforcement staff.  FLETC provides one of the
few  opportunities for  state, local and tribal enforcement  professionals to obtain criminal
investigations training.

       In addition to training,  EPA will build state capacity through guidance and technical
assistance, including direct EPA assistance with 100 state inspections during 2001.  To improve
tribal inspectors' capacity, EPA will provide the training and guidance needed to authorize tribal
inspectors to conduct environmental compliance inspections on behalf of EPA.

International Enforcement and Compliance

       Meeting its objective of achieving the benefits of environmental requirements through a
strong 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 here.
       The  Agency's enforcement  and  compliance  assurance  program  has international
responsibilities in two key areas in 2001. The first is the import and export of hazardous waste. EPA
manages an import-export waste tracking program which monitors the trans-boundary movement
of hazardous waste which will enable EPA to review and respond to 100% of the notices for trans-
boundary movement of hazardous waste, ensuring that these wastes are properly handled in
accordance with international agreements and RCRA regulations. While the vast majority of the
hazardous waste trade occurs with Canada, the U.S. has agreements concerning international trade
in hazardous wastes with Mexico, Malaysia, Costa Rica and the 29 member countries of the
Organization for Economic Cooperation and Development. EPA examines export notifications and
forwards them to the importing and transit countries and provides U.S. consent or objection to
proposed hazardous waste imports.  In calendar year 1998, EPA responded to notices regarding
5,450 distinct waste streams. In 2001, EPA will review and respond to 100% of these notices for
trans-boundary movements of hazardous wastes, ensuring their proper management in accordance
with international agreements. Through analysis of notices, manifests, and tracking documents, EPA
monitors compliance with relevant regulations and takes enforcement actions as necessary.

       The second area involves international commitments for enforcement and compliance
cooperation with other countries, especially with Canada and Mexico, which share borders with the
United States and are members of the North American Free Trade Agreement (NAFTA). Through
these  commitments,  EPA  reduces environmental  risks to from pollution which may have trans-
boundary impacts.

       In 2001, EPA will work with Canada and Mexico on the Commission for Environmental
Cooperation (CEC), on which the Administrator as U.S. Commissioner, and with Mexico pursuant
                                        IX-16

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to the LaPaz Agreement. Work with CEC will focus on enforcement and compliance indicators;
environmental management systems; control of CFCs, persistent toxic chemicals and hazardous
waste; promotion of voluntary compliance;  and information and technical exchanges. In 2001,
bilateral efforts with Mexico will include cooperative efforts to bring civil and criminal enforcement
actions along the border and against those illegally importing hazardous wastes, pesticides, toxic
chemicals and ozone depleting substances. EPA will also work with the Mexican environmental
agencies to promote compliance by Mexican subsidiaries of U.S. companies located in the border
area by encouraging their participation in Mexico's voluntary audit program; to support community-
based enforcement and  compliance partnerships with the border states; and on issues regarding
technical assistance to Mexico, including environmental impact assessments.
FY 2001 Change from FY 2000 Enacted

 EPM

•      (-5.7 FTE).  The Agency reduced its FTE to implement recommendations made by the
       Appropriations Committees in the FY 2000 Report.

«      (+$9,183,600). The Agency is providing additional payroll dollars to cover increased costs
       associated with the current workforce.

•      (+$3,250,000).  The Request  provides additional resources to the Agency's  Civil
       Enforcement program. These resources will support litigation efforts, such as hiring experts
       to testify during enforcement cases.

•      (+$3,193,000). The Request provides additional resources to the Agency's Compliance
       Monitoring program. These resources will be used to train inspectors and provide technical
       support to inspectors.

»      (+$2,500,000). The Agency is requesting extramural funds to support hiring approximately
       35 Senior Environmental Employment (SEE) inspectors for the EPA Regions to inspect
       housing units for compliance with lead-based paint rules.

•      (+$2,600,000). To support development of the General Enforcement Management System
       (GEMS), a consolidated enforcement and compliance information management system to
       support core program needs and provide integrated data necessary for risk-based strategies.

•      (-$450,000).   In FY 2001 the Agency is funding the State Enforcement Associations at
       $500,000 to  support training needs. The  State Enforcement Associations  received  a
       Congressional Add-on of $950,000 in FY 2000. The $1,450,000 funding over the two year
       period (2000 and 2001) funds each Association at a slightly higher level than they received
       prior to the F Y 1999 reduction.


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S&T
       (-0,5 FTE). The Agency reduced its FTE to implement recommendations made by the
       Appropriations Committees in the FY 2000 Report.

       (+$414,200). The Agency is providing additional payroll dollars to cover increased costs
       associated with the current workforce.

       (+$560,000).  Investment to complete the new  facility for the National Enforcement
       Investigations Center (NEIC) to acereditable specifications and the move into it.  The new
       facility will allow NEIC to begin anew with a modern facility infrastructure.  The new
       laboratories will employ advanced systems technology to provide climate control  and
       ventilation systems to better support sensitive analytical equipment. The facility will be
       designed as a state-of-the-art instrumental laboratory witfi the commensurate field staging,
       shop, warehousing, office, and support units to  house NEIC's forensic environmental
       measurement capability. Also, this new facility will provide NEIC, as the Agency's only
       multimedia field operation and forensic laboratory, growth and expansion capacity well into
       the 21st century, through the development and  adoption  of new field and laboratory
       capabilities employing the latest advances in cutting edge environmental and  scientific
       technologies.
Superfund
       (-0.7 FTE).  The Agency reduced its FTE to implement recommendations made by the
       Appropriations Committees in the FY 2000 Report.

       (+$532,900). The Agency is providing additional payroll dollars to cover increased costs
       associated with the current workforce.

       (+$240,000).  Investment to complete the new facility for the National Enforcement
       Investigations Center (NEIC) to accreditable specifications (details provided above under
       S&T).

       (+$1,604,000). These funds will support the Agency's criminal enforcement program and
       supports work capital funds needs in the Regions.
Annual Performance Goals and Performance Measures

Non-Compliance Reduction

In 2001     EPA will direct enforcement actions to maximize compliance and address environmental and
          human health problems; 75% of concluded enforcement actions will require-environmental
                                        IX-18

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            orhuman health improvements such as pollutant reductions and/or changes in practices at facilities.
In 2000     Deter and reduce  non-compliance  and  achieve environmental and human health
            improvements by maintaining a strong, timely and active enforcement presence. 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 improvement, such as pollutant reductions and/or management process changes.
Performance Measures:
FY 1999
Actuals
Percent of actions which require pollutant reductions.

Estimated pounds of pollutants reduced (aggregate).

Establish statistically valid noncompliance rates or
other indicators of non-compliance for selected
environmental problems.

Establish baseline to measure percentage of
significant violators with reoccurring 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 report on the number of civil and criminal
enforcement actions initiated and concluded.

35% of concluded enforcement actions identify
pollutant reductions (core optional).

600 million pounds of pollutants reduced (core optional).

Increase or maintain compliance rates or other indicators
of compliance (using FY 2000 baseline) for selected
regulated populations (core optional).

By 2005, increase by  10% the number of concluded
enforcement actions that result in improvements in
the use or handling of pollutants from a FY 98
baseline (core optional).

By 2005, increase by  10% the number of concluded
enforcement actions that result in improvements in
facility management and information practices
from a FY 98 baseline (core  optional).
FY2000
Estimate

35

300
FY2001
Request

            Percent

            M pounds



            Indicators



            Baseline



            Baseline


            Report


35          Percent

600         M Pounds



5           Rates
                                           Percent
                                           Percent
                                                  IX-19

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Reduce by 2 percentage points the level of significant
non-compliance recidivism in each of the CAA,
CWA, and RCRA programs from FY 98
levels.                                                                              2           Percentage
                                                                                               Point

Increase by 2 percentage points the number of
facilities that return to full physical compliance in
less than two years for each of the CAA, CWA, and
RCRA programs from the FY 98 baseline(core required).                                 2           Percentage
                                                                                               Point

Produce a report on the number of civil and criminal
enforcement actions initiated and concluded
(core required),                                                                     1           Report

Baseline:   By the end of FY 2000 the program will be able to report statistically valid non-compliance rates
           for selected populations. FY 98 is the baseline year for most of the measures within this APG,
           as noted.


Inspections/Investigations

In 2001     EPA will conduct 15,000 inspections, 550 criminal investigations, and 150 civil investigations
           targeted to  areas that pose risks to human health  or the environment, display patterns  of
            non-compliance or include disproportionately exposed populations.
In 2000     EPA will conduct 13,500 inspections, 500 criminal investigations, and 150 civil investigations,
            50% of which are targeted at priority areas.

In 1999     We exceeded our goal to deter non-compliance by maintaining levels of field presence and
            enforcement  actions,  particularly  in high risk  areas  and/or where  populations  are
            disproportionately exposed.  In 1999, EPA conducted 21,410 (15,000 target) inspections and
            undertook 3,935 (2,600 target) enforcement actions.
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Performance Measures:
FY 1999
Actuals
FY 2000
Estimate

13500
FY 2001
Request
Number of EPA inspections                                         13500                      Inspections

Percent of inspections and investigation
(civil and criminal) conducted at priority areas

Conduct 15,000 EPA inspections (core required)

EPA Inspections                                   21,410

Number of Criminal Investigations

Number of Civil Investigations

Baseline:   The number of inspections varies each year by the complexity of facilities targeted. In FY 2001, EPA
           will maintain its  enforcement  presence by  conducting at least 15,000 inspections  and 550
           investigations.
50


500
150

15,000

550
150
Percent
Inspections
Inspections
Investigations
Investigations
Quality Assurance

In 2001      Maintain and improve quality and accuracy of EPA's enforcement and compliance data to identify
            noncompliance and focus on human health and environmental problems.

In 2000      Maintain and improve quality and accuracy of EPA's enforcement and compliance assurance data to
            identify noncompliance and focus on human health and environmental problems.

In 1999      We met our goal by targeting 7 (of 5 targeted) high priority areas through the MOA process for
            enforcement and compliance assistance and completing 2 (of 2 targeted) baseline data assessment
            in major databases, AFS and DOCKET, needed to measure quality of key indicators of compliance.
Performance Measures:
Data system improvement to capture changes to 98 base

Complete concept and begin design phase of
General Enforcement Mgt system (GEMS)

Continue concept phase and begin design phase
of PCS modernization

Complete General Enforcement Management System
(GEMS) development (programming) and begin system
testing

Complete Quality Management Plan (QMP) project
for 5 additional data systems
FY 1999
Actuals
FY 2000
Estimate
               09/30/2000
               09/30/2000
FY2001
Request
                           Data System


                           Date


                           Date



                           Data System


                           Data Systems
                                                  re-21

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Complete detailed design (development of screens,
prototypes) for Permit Compliance System (PCS)
system modernization                                                               1           Data System

Continue operation and maintenance/user support of
14 information systems housing national enforcement
and compliance assurance data with a minimum of
95% operational efficiency                                                            95         Percent

Conduct four data analyses of environmental problems
in Indian Country using the American Indian Lands
Environmental Support Project (AILESP) and the baseline
assessment survey.                                                                  4           Data Analyses

Baseline:    EPA's 14 data systems will operate at 95% or better operational efficiency, although the Agency is
            working to modernize these data systems and improve data integration and consistency. The Office
            of Enforcement and Compliance Assurance will complete baseline assessments of its national data
            systems by the end of FY 2000. Beginning in FY 2000/2001, the Agency will conduct annual audits.


Capacity Building

In 2001     Improve capacity of states, localities and tribes to conduct enforcement and compliance programs.
            EPA will provide training as well as  assistance with state and tribal inspections to build capacity,
            including implementation of the inspector credentials program for tribal law enforcement personnel.

In 2000     Improve capacity of states, localities and tribes to conduct enforcement and compliance assurance
            programs. EPA will provide grants, guidance documents, training, classes and seminars, and assist
            with selected inspections.

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
                                                   Actuals         Estimate         Request

Specialized assistance and training                    218                                       Courses

Number of EPA-assisted inspections to build capacity.                    100                        Inspections

Number of EPA training classes/ seminars delivered
to states, localities and tribes to build capacity.                          200             220        Classes

Conduct 100 EPA-assisted inspections to build capacity.                                 100        Inspections

The National Enforcement Training Institute will
train 105 Tribal personnel, representing a 20% increase
over FY 1999.                                                                      105        Personnel

The National Enforcement Training Institute will
provide tribal governments with 50 computer-based
training (CBT) modules.                                                             50         Training module


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Baseline:    The National Environmental Training Institute (NET!) provided 100 training classes/seminars and
            the Regions provided 30 classes/seminars in FY 2000. The Agency is currently undertaking a pilot
            in FY 2000 to evaluate EPA-assisted inspections.
International Enforcement

In 2001     Ensure compliance with legal requirements  for proper handling of hazardous waste imports and
            exports.

In 2000     Ensure compliance with legal requirements by assuring that hazardous waste exports from the U.S.
            are properly handled.  Implement U.S. international commitments, and gain enforcement and
            compliance cooperation with other countries, especially along U.S. borders (Mexico/Canada).

In 1999     We missed our target by properly handling 1,539 of the targeted 1,600 import notifications due to
            a decline in hazardous waste imports and increased capacity in Europe to handle waste. In addition,
            we changed our goal and measure in FY 2000 to more accurately reflect program achievements.
Performance Measures:
Import / Export Notifications.

Ensure compliance with legal requirements by
assuring that hazardous waste exports from the U.S.
are properly handled.

Review and respond to 100% of the notices for
trans-boundary movement of hazardous wastes, ensuring
their proper management in accordance with
international agreements.

Ensure proper handling of 200,000 tons of hazardous
waste exports.                                       n/a
FY 1999
Actuals

1539
FY2000
Estimate
FY2001
Request
                1500
                           Notifications
                           Notices
                                100
                           Percent
                                           Tons
Baseline:    In Calendar Year 1998 EPA responded regarding 5,450 distinct waste streams described in import
            and export notices. Responses to import notices require review of the permit and compliance history
            of the proposed U.S. receiving facility, where responses to export notices involve obtaining consent
            or objection from the proposed receiving country.
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Verification and Validation of Performance Measures

Performance Measure: 35% of concluded enforcement actions identify pollutant reductions

Performance Database: Docket - tracks EPA civil, judicial and enforcement actions,

Data Source: EPA headquarters and Regional offices.

QA/QC Procedures: Data must meet Docket system edits.

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: Analysis of Case Conclusion Data Sheet preparation and use;
final report due 10/99.


Performance Measure: 600 million pounds of pollutants reduced

Performance Database: Docket - tracks EPA civil, judicial and enforcement actions.

Data Source: EPA headquarters and Regional offices.

QA/QC Procedures: Data must meet Docket system edits.

Data Quality Review: None

Data Limitations: EPA staff estimates pollutant reductions using best professional judgement;
algorithms.

New & Improved Data or Systems: Analysis of Case Conclusion Data Sheet preparation and use;
final report due 10/99.
Performance Measure:  Increase or maintain compliance  rates or other indicators of
compliance (using FY 2000 baseline) for selected regulated populations.

Performance Database: PCS (Permit Compliance System) tracks National Pollutant Discharge
Effluent System permit and enforcement actions, reporting and scheduling requirements. AFS (Air
Facility Sources System) captures emission, compliance and permit data for major stationary sources
of air pollution. RCRIS (Resource Conservation and Recovery System) supports permit, compliance
and corrective action activities.

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Data Source: EPA regional offices, delegated states

QA/QC Procedures: Systems have been developed per Office of Information Management
Lifecycle Management Guidance, including data validation processes, internal screen audit checks
and verification, system and user document., data quality audit reports, third party testing reports,
detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IG reports in 97 and 98 show states' problems with  identifying
and reporting Clean Air Act significant violators, impairing EPA ability to assess non-compliance.
EPA issued High Priority Violator Guidance to improve tracking of source of violation; enhanced
oversight and headquarters outreach to regions, states, locals. (SeeNPM Major Management Issues.)
Data Limitations: For all systems, concerns about quality and completeness of data; ability of
existing systems to meet data needs; incompatible database structures/designs and differences in data
definitions impede integrated analyses. Incomplete data available on universe of regulated facilities;
not all are inspected/permitted.

New & Improved Data or Systems: PCS modernization is currently underway. Are preparing
Quality Management Plans (data quality objectives, quality assurance project plans, baseline
assessments) for all maj or systems. General Enforcement Management System (GEMS) will support
core program, needs and consolidate and streamline existing systems. Pilot project is underway on
developing statistically-valid compliance rates.
Performance Measure: By 2005, increase by 10% the number of concluded enforcement
actions that require improvements in the use or handling of pollutants over the FY 98 baseline.
Performance Database: Docket - tracks EPA civil, judicial and enforcement actions.

Data Source: EPA headquarters and Regional offices.

QA/QC Procedures: Managers in the field and in HQ review information on Case Conclusion Data
Sheets. Data must meet Docket system edits.

Data Quality Review: None

Data Limitations: Enforcement follow up to confirm actual result from case data conclusion sheets
does not take place in all cases.

New & Improved Data or Systems: Review of Case Conclusion Data Sheet preparation and use,
to be completed in 1999.

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Performance Measure: By 2005, increase by 10% the number of concluded enforcement
actions that result in improvements  in facility management practices and information over
the FY 98 baseline.

Performance Database: Docket - tracks EPA civil, judicial and enforcement actions.

Data Source: EPA headquarters and Regional offices.

QA/QC Procedures: Managers in the field and in HQ review information on Case Conclusion Data
Sheets. Data must meet Docket system edits

Data Quality Review: None

Data Limitations: Enforcement follow up to confirm actual result from case data conclusion sheets
does not take place in all cases,

New & Improved Data or Systems: Review of Case Conclusion Data Sheet preparation and use,
to be completed in 1999.
Performance Measure: Reduce by 2 percentage points the level of significant noncompliance
recidivism in the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery
Act programs from FY 98 levels.

Performance Database: PCS (Permit Compliance System) tracks National Pollutant Discharge
Effluent System permit and enforcement actions, reporting and scheduling requirements. AFS (Air
Facility Sources System) captures emission, compliance and permit data for major stationary sources
of air pollution RCRIS (Resource Conservation and Recovery System) supports permit, compliance
and corrective action activities.

Data Source: EPA regional offices, delegated states.

QA/QC Procedures:  Systems have been developed per Office of Information Management
Lifecycle Management Guidance, including data validation processes, internal screen audit checks
and verification, system and user document., data quality audit reports, third party testing reports,
detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IG reports in 97 and 98 show states' problems with identifying
and reporting Clean Air Act Significant violators, impairing EPA ability to assess non-compliance.
EPA issued High Priority Violator Guidance to improve tracking of source of violation; enhanced
oversight and headquarters outreach to regions, states, locals. (See NPM  Major Management
Issues.)
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Data Limitations: For all systems, concerns about quality and completeness of data; ability of
existing systems to meet data needs; incompatible database structures/designs and differences in data
definitions impede integrated analyses. Incomplete data available on universe of regulated facilities;
not all are inspected/permitted. Significant violator definition changed for AFS  in mid FY99,
Different RCRA  significant violator definitions reflect inconsistent

New & Improved Data or Systems: PCS modernization is currently underway. Are preparing
Quality Management Plans (data quality objectives, quality assurance project plans, baseline
assessments) for all major systems. General Enforcement Management System will support core
program, needs and consolidate  and streamline existing systems. Pilot project is underway on
developing statistically valid compliance rates. Natl. Performance Measure Strategy project on
impact of EPA strategies on recidivism focuses attention on better
Performance Measure: Increase by 2 percentage points the number of facilities that return to
full physical compliance in less than two years for Clean Air Act, Clean Water Act, and
Resource Conservation and Recovery Act programs from the FY 98 baseline.

Performance Database: PCS (Permit Compliance System) tracks National Pollutant Discharge
Effluent System permit and enforcement actions, reporting and scheduling requirements. AFS (Air
Facility Sources System) captures emission, compliance and permit data for major stationary sources
of air pollution RCRIS (Resource Conservation and Recovery System) supports permit, compliance
and corrective action activities.

Data Source: EPA regional offices, delegated states

QA/QC Procedures: Systems have been  developed per Office  of Information  Management
Lifecycle Management Guidance, including data validation processes, internal screen audit checks
and verification, system and user document, data quality audit reports, third party testing reports,
detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IG reports in 97 and 98 show states' problems with identifying
and reporting Clean Air Act Significant violators, impairing EPA ability to assess non-compliance.
EPA issued High Priority Violator Guidance to improve tracking of source of violation; enhanced
oversight and headquarters  outreach to regions, states, locals.  (See NPM  Major Management
Issues.)

Data Limitations: For all  systems, concerns about quality and completeness of data; ability of
existing systems to meet data needs; incompatible database structures/designs and differences hi data
definitions impede integrated analyses. Incomplete dataavailable on universe of regulated facilities;
not all are inspected/permitted.
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New & Improved Data or Systems: PCS modernization is currently underway. Are preparing
Quality Management Plans (data quality objectives, quality assurance project plans, baseline
assessments) for all major systems. General Enforcement. Management System will support core
program,  needs and  consolidate and streamline existing systems. Pilot project is underway on
developing statistically valid compliance rates.
Performance Measure: Produce report on the number of civil and criminal enforcement
actions initiated and concluded.

Performance Database: Output measure.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None


Performance Measure: 15,000 EPA inspections.

Performance Database: IDEA (Integrated Data for Enforcement Analysis) integrates data from
major enforcement and compliance systems, PCS, AFS, RCRIS, Dunn and Bradstreet, OSHA,
ERNS.

Data Source: EPA Regional offices.

QA/QC Procedures: Systems have been developed per Office of Information  Management.
Lifecycle Management Guidance, including data validation processes, internal screen audit checks
and verification, system and user document., data quality audit reports, third party testing reports,
detailed report specifications for showing how data are calculated.

Data Quality Review: AFS: EPA IG reports in 97 and 98 show states' problems with  identifying
and reporting Clean Air Act Significant violators, impairing EPA ability to assess non-compliance.
EPA issued High Priority Violator Guidance to improve tracking of source of violation; enhanced
oversight and headquarters outreach to regions, states, locals. (SeeNPM Major Management Issues.)
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Data Limitations: For all systems, concerns about quality and completeness of data; ability of
existing systems to meet data needs; incompatible database structures/designs and differences in data
definitions impede integrated analyses. Incomplete data available on universe of regulated facilities;
not all are inspected/permitted.

New & Improved Data or Systems: PCS modernization is currently underway. Are preparing
Quality Management Plans (data quality objectives, quality assurance project plans, baseline
assessments) for all major systems. General Enforcement. Management System will support core
program, needs and consolidate and streamline existing systems. Pilot project  is underway on
developing statistically valid compliance rates.
Performance Measure: 50% of inspections and investigations (civil and criminal) conducted
in National and Regional priority areas, (core required)

Performance Database: IDEA (Integrated Data for Enforcement Analysis) integrates data from
major enforcement and compliance systems, PCS,  AFS, RCRIS, Dunn and Bradstreet, OSHA,
ERNS.

Data Source: EPA Regional offices.

QA/QC  Procedures:  Systems have been developed per Office of Information  Management
Lifecycle Management Guidance, including data validation processes, internal screen audit checks
and verification, system and user document., data quality audit reports, third party testing reports,
detailed report specifications for showing how data are calculated.

Data Quality Review:  AFS: EPA IG reports in 97 and 98 show states' problems with identifying
and reporting Clean Air Act Significant violators, impairing EPA ability to assess non-compliance.
EPA issued High Priority Violator Guidance to improve tracking of source of violation; enhanced
oversight and headquarters outreach to regions, states, locals. (See NPM Maj or Management Issues.)
Data Limitations: For all systems, concerns about quality and completeness of data; ability of
existing systems to meet data needs; incompatible database structures/designs and differences in data
definitions impede integrated analyses. Incomplete data available on universe of regulated facilities;
not all are inspected/permitted.

New & Improved Data or Systems:   PCS modernization is currently underway. Are preparing
Quality Management Plans (data quality objectives, quality assurance project plans, baseline
assessments) for all major systems. General Enforcement. Management System will support core
program, needs and consolidate and streamline  existing systems. Pilot project is underway on
developing statistically valid compliance rates.
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Performance Measure:  Complete General Enforcement Management System  (GEMS)
development (programming) and begin system testing.

Performance Database: Output measure. No database.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems; None


Performance Measure: Complete Quality Management Plan (QMP) project for 5 additional
data systems.

Performance Database: Output measure; internal tracking of measure.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None


Performance Measure: Complete detailed design (development of screens, prototypes) for Permit
Compliance System (PCS) system modernization.

Performance Database: Output measure. No database.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None

                                     IX-30

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Data Limitations: None

New & Improved Data or Systems: None


Performance Measure: Continue operation and maintenance/user support of 14 information
systems housing national enforcement and compliance assurance data with less than 5% down-
time.

Performance Database: No database; internal tracking of measure.

Data Source: None

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None


Performance Measure: 100 EPA-assisted inspections to build capacity.

Performance Database: Output measure; internal Regional tracking system.

Data Source: Internal Regional tracking system.

QA/QC Procedures: Regional and HQ managers check Information  to confirm accuracy.

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None
Performance Measure: 220 EPA training classes/seminars delivered to states, localities and
tribes to build capacity.

Performance Database: NETI's course information Management systems, the Automated Blue
Form, and the registrar.

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Data Source: Manual Reports.

QA/QC Procedures: Managers QA/QC information in system.

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems: None


Performance Measure: EPA will review and respond to 100% of the notices for transboundary
movement of hazardous wastes, ensuring their proper management in accordance with
international agreements.

Performance Database: WITS (Waste Import Tracking Systems), Hazardous Waste Export System
(HWES).

Data Source: Manual  Reports (notifications) submitted by U.S. exporters and by foreign
governments for imports.

QA/QC Procedures: EPA reviews the notifications, manifests and annual reports to ensure they are
timely and accurate before they are entered into the database.

Data Quality Review: None

Data Limitations: Notifications are self-reported.

New & Improved Data or Systems:


Performance Measure: The National Enforcement Training Institute (NETI) will train 105
tribal personnel.

Performance Database: National Enforcement Training Institute Registration System.

Data Source: Potential class participants.

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

                                      IX-32

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New & Improved Data or Systems:


Performance Measure: The National Enforcement Training Institute (NETI) will provide
tribal governments with 50 computer-based training (CBT) modules.

Performance Database: National Enforcement Training Institute Registration System.

Data Source: Qualified individuals interested in NETI training.

QA/QC Procedures: None

Data Quality Review: None

Data Limitations: None

New & Improved Data or Systems:


Performance Measure: Conduct four data analyses of environmental problems in Indian Country.

Performance Database: American Indian Environmental Support project (AILESP),

Data Source: EPA Compliance Databases.

QA/QC Procedures:

Data Quality Review:

Data Limitations:

New & Improved Data or Systems:
                                      IX-33

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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 RCRA Enforcement and Compliance Monitoring program coordinates with the National
Accident Investigation Board, Occupational Safety, and Health Administration, and Agency for
Toxic Substances and Disease Registry in preventing and responding to accidental releases and
endangerment situations; and, with the Bureau of Indian Affairs on  tribal issues relative to
compliance and enforcement of underground storage tank and RCRA Subtitle C requirements.

       The Water Enforcement and Compliance Monitoring program coordinates with the U.S.
Army Corps of Engineers on wetlands. Moreover, due to changes in the Food Security Act, the U.S.
Department of Agriculture/Natural Resources Conservation Service (USDA/NRCS) has a major role
in the determination of whether areas on agricultural lands meet the definition of wetlands and are
therefore regulated under the Clean Water Act Civil Enforcement coordinates with USDA/NRCS
on these issues also. Finally, the program coordinates closely with the Department of Agriculture
on the implementation of the Unified National Strategy for Animal Feedlot Operations.

       The Toxics and Pesticides Enforcement and Compliance Monitoring program coordinates
with USD A on food safety issues arising from the misuse of pesticides, and shares joint jurisdiction
with 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.

       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.
                                        DC-34

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       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 foil delegation.
EPA will continue 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-Know Act sections 325 and 326 (42 U.S.C. 11045,
11046)

Federal Insecticide, Fungicide, and Rodenticide Act sections 8, 9,  12, 13, and 14 (7 U.S.C. 136f,
136g, 136j, 136k, 1361)

Ocean Dumping Act sections 101,104B, 105, and 107(33 U.S.C. 1411,1414B, 1415,1417)

North American Agreement on Environmental Cooperation
                                        IX-35

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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-36

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                             Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

         A Credible Deterrent to Pollution and Greater Compliance with the Law


Objective #2: Increase Use of Auditing, Self-Policing Policies

       Promote the regulated communities' voluntary compliance with environmental requirements
through compliance incentives and assistance proograms.
                                    Resource Summary
                                   (Dollars in Thousands)
                                          FY1999
                                          Enacted
           FY2000
           Enacted
FY 2001    FY 2001 Req. v.
Request     FY 2000 Ena.
Increase Use of Auditing, Self-Policing Policies

    Environmental Program & Management

    State and Tribal Assistance Grants

    Hazardous Substance Superfimd

       Total Workyears
$42,870.5      $49,417.4

$40,378.0      $46,873.6

 $2,214.2   '    $2,214.2

  $278.3         $329.6

   443.7          422.6
  $52,464.8       $3,047.4

  $49,742.8       $2,869.2

   $2,214.2          $0.0

     $507.8        $178.2
     423.5
0.9
                                           IX-37

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                                    Key Programs
                                 (Dollars in Thousands)

Project XL
Common Sense Initiative
Compliance Assistance and Centers
Compliance Incentives
NEPA Implementation
State Toxics Enforcement Grants
Rent, Utilities and Services
Administrative Services
Regional Management
FY1999
Enacted
$2,514,7
$853,8
$18,426.5
$5,342.7
$9,269.5
$2,214.6
$0.0
$248.0
$0.0
FY2000
Enacted
$2,635,4
$448.6
$22,549.7
$5,195.7
$9,901.4
$2,214.2
$3,596.3
$743.6
$158.6
FY2001
Request
$2,880.0
.$471.8
$23,711.8
$5,679.1
$10,711.9
$2,214.2
$4,031.0
$814.5
$130.1
FY 2001 Request

       The enforcement and compliance assurance program uses voluntary compliance incentives
and assistance tools to increase compliance with regulatory requirements and reduce adverse public
health  and environmental problems.  By providing compliance incentives to the regulated
community, the Agency motivates and enhances the capacity of the regulated community to folly
comply with the law and to voluntarily and promptly disclose violations before they come to the
attention of the government.

       The Agency also provides compliance assistance to the regulated community. By providing
clear and consistent descriptions of regulatory requirements, EPA assures that  the community
understands its obligations. Compliance assistance can also help regulated industries find cost-
effective ways to comply through the use of pollution prevention and innovative technologies.

       In 2001  the Agency will also continue to carry out responsibilities under the National
Environmental Policy Act (NEPA). NEPA requires that Federal agencies considerthe environmental
consequences of their activities. EPA's NEPA program reviews major actions taken by other Federal
agencies and by EPA to ensure that adverse environmental effects are identified and are either
eliminated or mitigated.
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Compliance Incentives

       In 2001, the Compliance  Incentives  program  will  continue to  implement  EPA's
Audit/Self-Policing Policy as a core element of the enforcement and compliance assurance program.
EPA developed its Audit/Self-Policing Policy in 1995 to encourage corporate audits and subsequent
correction of self-discovered violations, and to provide a uniform  enforcement response toward
disclosures of violations.  Under the Audit Policy, violations are  discovered through voluntary
environmental audits or a compliance management system, and are  promptly disclosed and
expeditiously corrected.  EPA will not seek gravity-based penalties, (such as punitive aspect of
penalties, or jail time a polluter could receive for not complying with the environmental laws), and
will generally not recommend prosecution against the regulated entity, for disclosures that meet
Audit Policy requirements. EPA will reduce gravity-based penalties by 75% for violations that are
voluntarily discovered, and are promptly disclosed and corrected, even if not found through a formal
audit or compliance management system.  The Policy also restates EPA's long-held policy and
practice to refrain from routine requests for environmental audit reports.

       During 1996,1997 and 1998, the number of facilities self-disclosing under the audit policy
has roughly doubled each year.  As of July 1,1999 approximately 485 companies have disclosed
potential violations at 1,900 facilities, and EPA has granted penalty  relief to 199 companies at 987
facilities. EPA is currently working on several initiatives to encourage corporate self-disclosures,
and recently finished targeted industry initiatives for the telecommunication industry, the national
oilseed producers, and mini-mills. EPA is currently working on several new targeted initiatives to
encourage corporate self-disclosures in support of the Agency's goal to increase the number of
facilities voluntarily self-disclosing and correcting violations. The Agency's goal is to increase the
number of facilities that voluntarily self-disclose and correct their violations by 25% by 2005.

       The Agency intends to expand use  of the Audit Policy  through industry initiatives and
outreach. EPA is particularly interested in encouraging disclosures  at multiple facilities owned by
the $ame regulated entity because such disclosures allow regulated entities to review their operations
holistically, benefit the environment, and effectively leverage resources of the Agency. EPA also
plans to increase opportunities through new targeted sector initiatives for industry to self-disclose
and correct violations on a corporate-wide basis.

       The EPA Policy on Compliance Incentives for Small Business is intended to promote
environmental compliance among small businesses by providing them with special incentives to
participate in compliance assistance programs or to conduct environmental audits and then promptly
correct violations. EPA has been working with stakeholders to modify the  policy to encourage
greater participation. As part of its 2001 marketing and outreach activities for this approach, EPA
will work with small business compliance assistance providers to develop tools useful to small
businesses in understanding applicable environmental requirements and conducting compliance
audits.
                                          IX-39

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       In 2001 the Compliance Incentives program will continue to evaluate the effectiveness of
environmental management  systems (EMS)  for improving  compliance  and environmental
performance. The results of this evaluation will provide the program with a better understanding of
the effectiveness of EMS in relation to compliance. The program will begin to promote the use of
EMS to address known compliance and performance problems. To this end, EPA will develop
assistance tools, such as training or "best practices" manuals.

       Initiated under the Agency's Common Sense Initiative  (CSI), the printing sector project
encourages the incorporation of pollution prevention practices  into everyday work processes of
printerstep; improving access to data for all interested parties; reducing transaction costs associated
with the printing process; increasing regulatory flexibility; and promoting meaningful community
involvement. The project team designed an alternative permit system that is expected to result in
reduced  emissions, greater  operational flexibility, enhanced  public participation and lower
transaction costs. Pilots of the approach were initiated in three to five states during 2000 and are
expected to continue during 2001.

       The enforcement and compliance assurance program  will also continue to participate in
Project XL (excellence in Leadership) projects, projects under the EPA/state regulatory innovation
agreement, and other reinvention partnerships.  The Agency recognizes that alternative approaches
to environmental protection are experimental in nature, may not work as expected and necessarily
involve some degree of risk.  To ensure the public is not exposed to unnecessary risk, the program
will focus on ensuring these projects are legally enforceable where necessary, provide accountability
and transparency for participants, and provide an orderly return to compliance in the event of project
termination. The program will also assist in verifying and evaluating project results.

       Under the Federal facilities program, EPA will review disclosures by Federal facilities under
the EPA Audit/Self-Policing Policy and other incentive policies, EPA will participate in Project XL
activities and other reinvention activities affecting Federal facilities.

Compliance Assistance

       The Agency's compliance assistance 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 initiatives targeted toward improving
compliance in specific industrial and commercial sectors or with certain regulatory  requirements,
the program will continue to  develop strategies and compliance assistance tools and provide these
to the regulated community.  Compliance tools developed range from plain-language guides to
comprehensive sector-based documents (such as the Sector Notebooks that include information on
industry-specific manufacturing processes and pollution issues) to statute-based environmental audit
protocol  manuals to fact sheets, checklists and newsletters.  In 2001, EPA will  develop 200
compliance assistance tools and to reach 500,000 facilities, states, or technical assistance providers
through these targeted compliance assistance efforts.


                                         LX-40

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       Moreover, in 2001, the program will continue with activities begun in 2000 that shifted EPA
away from direct delivery of compliance  assistance, except as part of targeted initiatives for
particular sectors, and into the role of a "wholesaler" of information by distributing and marketing
tools through a network of compliance and technical assistance providers that work more directly
with the regulated community.  These activities include (1) convening a compliance assistance
exchange forum, composed of public and private sector representatives, to share information on
recently-promulgated regulations and new compliance assistance materials and (2) developing a
clearinghouse of compliance assistance materials available from federal, state and local governments
and from trade associations.  EPA intends that all new compliance assistance 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 continue to support the nine 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 hi partnership with industry
associations, environmental groups, universities and other government agencies, the centers are
accessible through Internet web sites as well as toll-free telephone assistance lines.

       The Agency will also provide sector-based materials and services and training sessions to the
regulated community to improve industry's regulatory and technical knowledge. EPA will promote
adoption of innovative technologies, including waste inMmization. In 2001, EPA plans to provide
compliance assistance to 500,000 facilities.

       To improve its ability to measure the effectiveness of its various strategies in improving
compliance and environmental results,  EPA has tested  methodologies designed to measure
behavioral change resulting from targeted compliance assistance. Focusing on 10 outcome measures
projects, EPA's goal is for 50% of the recipients of compliance assistance in these projects to have
improved their use or handling of pollutants or improved their facility management practices or
information as a result of the assistance received.

       Consistent with its Indian Program Strategy, the Agency will assist Tribes in developing their
own compliance assistance programs. Funds will be used to enhance Tribal programs and to provide
training to senior Tribal regulatory officials on the latest theories  and techniques for effective
compliance and enforcement programs. In 2001, EPA will continue its programs to assist Tribes in
addressing solid waste management problems.

       The program disseminates information to the public and regulated community on important
environmental issues, trends, and significant enforcement actions. This assistance (e.g., enforcement
alert publications, slide presentations to  industry) is designed to help the regulated  community
                                         IX-41

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anticipate and prevent violations of federal environmental laws that could otherwise lead to
environment actions.
       EPA will also use the broad authority available under TSCA (and other statutes) to provide
funding to selected support state and tribal multimedia compliance assistance projects in 2001.
States provide and tribes will address compliance problems with specific industries and/or economic
sectors

       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 and 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 Implementation

       The  National  Environmental  Policy Act  NEPA  Implementation 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 2001  the  Agency will be a significant  player hi
implementing  the Transportation  Equity Act  for  the 21st  Century  (TEA-21) through early
involvement and intensive review in the NEPA process.  In 2001, EPA will review all major
proposed federal actions under NEPA and achieve successful mitigation for at least 70 percent of
the adverse environmental impacts resulting from those actions. The program also manages the
Agency's official filing activity for all federal Environmental Impact Statements (EIS) in accordance
with a Memorandum of Understanding with the Council on Environmental Quality.

       The NEPA Implementation program also guides EPA's compliance with other applicable
statutes, and related environmental justice requirements.  These efforts include EPA-issued new
source National Pollutant Discharge Elimination System permits in the eight undelegated states and
for off-shore oil and  gas  sources, EPA laboratories  and facilities,  and construction projects
authorized in EPA's Appropriations Act. In 2001, EPA will review and document 100 percent of
                                        IX-42

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water treatment facility construction grants and water discharge permits subject to NEPA to ensure
that impact of construction will not adversely affect the environment.
FY 2001 Change from FY 2000 Enacted

EPM

•      (-1.7 FTE)  The Agency reduced its FTE to implement recommendations made by the
       Appropriations Committees in the FY 2000 Report.

•      (+$2,036,200) The Agency is providing additional payroll dollars to cover increased costs
       associated with the current workforce.

•      (+$986,000) Resources for the working capital fund is spread across all objectives to reflect
       where the charging will take place.

       (-$419,200) In 2001, the Agency will continue with activities begun in 2000 that shifted
       EPA away from direct delivery of compliance assistance, except as part of targeted initiatives
       for particular sectors, and into the role of a "wholesaler" of information by distributing and
       marketing tools through a network of compliance and technical assistance providers that
       work more directly with the regulated community. These activities include (1) convening
       a  compliance  assistance exchange forum,  composed of public  and  private  sector
       representatives,  to  share information on  recently-promulgated regulations  and  new
       compliance assistance materials and (2) developing a clearinghouse of compliance assistance
       materials available from federal, state and local governments and from trade associations.
       EPA intends that all new compliance assistance 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.

Superfund

•      (+$ 178,200) These funds support increased costs associated with the current workforce as
       well as increased support to the Agency's compliance assistance and incentive programs.
Annual Performance Goals and Performance Measures

Compliance Incentives

In 2001 Increase opportunities through new targeted sector initiatives for industries to voluntarily self-disclose and
       correct violations on a corporate-wide basis.

In 2000 Increase entities self-policing and self-correction of environmental problems through use of EPA incentive
       policies: small business, small community and audit policies over FY97 levels.

                                          IX-43

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Performance Measures:                           FY1999        FY2000        FY2001
                                               Actuals         Estimate        Request

Number of facilities that self-disclosed potential
violations.                                                         346                      Facilities

By 2005 increase by 50% over FY 97 levels the
number of facilities voluntarily
self-disclosing and correcting violations
to the Federal government                                                           15       Percent

Baseline:            In FY 97, 79 facilities voluntarily self-disclosed and corrected violations.  In FY
                    2001, the performance measure unit was changed from facilities to percent.

Environmental Management Systems

In 2001  Promote the use of Environmental Management Systems (EMS) to address known compliance and performance
        problems.

Performance Measures:                               FY 1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

Increase EMS use by developing tools, such as
training and best practice manuals that encourage
improved environmental performance.                                                 3         Tools

Baseline:            This will be a new activity in FY 2001 as EPA implements the Innovations Task
                    Force recommendations. We project that there will be 3 tools developed in FY
                    2001.

Regulated Communities

In 2001 Increase the regulated community's compliance with environmental requirements through their expanded use
        of compliance assistance. The Agency will continue to operate small business compliance assistance centers
        and develop compliance assistance tools such as sector notebooks and compliance guides.

In 2000 Increase the regulated community's compliance with environmental requirements through their expanded use
        of compliance assistance. The Agency will continue to operate small business compliance assistance centers
        and develop compliance assistance tools such as sector notebooks and compliance guides.

In 1999 We met our goal of increased use of compliance incentives and the understanding of, and ability to comply with,
        regulatory requirements by operating 9  small business compliance assistance centers (meeting target),
        completing  10 sector notebooks, guides, etc, (target 5), and conducted 22 (target 15) Federal facility
        management reviews.

Performance Measures:                               FY 1999        FY2000        FY2001
                                                   Actuals         Estimate        Request

Compliance Assistance Centers in Operation.            9                                         Centers

Compliance Tools Development                       10                                       Sector
                                                                                            Guides.


                                               IX-44

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Federal Facility Management Reviews
                             22
Reviews
Total number of facilities reached
through targeted compliance assistance.

Number of compliance assistance tools developed.

50% of recipients of compliance assistance
from 10 projects will improve their use
or handling of pollutants or improved their
facility management processes (core optional).

Reach 500,000 facilities, states or technical
assistance providers through targeted
compliance assistance (core optional).

Develop 200 compliance assistance tools.

Increase compliance assistance center usage.

The Agency will reach 30 tribally
owned/managed facilities through targeted
compliance assistance.
                                            331,500

                                            150
                                                           50



                                                           500,000

                                                           200
                             36
                                                           30
Facilities

Tools
Baseline:
The Enforcement and Compliance program collects summary information from the
EPA regions annually on how many facilities are being reached through compliance
assistance efforts. In FY 96, EPA compliance assistance efforts across all programs
reached 246,600 facilities. In addition to summary information on compliance
assistance,  the  program is  conducting  10 compliance  assistance outcome
measurement projects in which information is being collected to assess the impact
of compliance assistance.
Percent



Entities

Tools

Percent



Facilities
Verification and Validation of Performance Measures

Performance Measure: By 2005 increase by 25% over FY 97 levels the number of facilities
        voluntarily  self-disclosing and  correcting  violations to  the Federal government.
Performance Database: Information on the application of the self-policing policy is tracked
        manually.    Headquarters will complete the  assessment of recording and  producing
        information on the self-policing policy in the DOCKET.

Data Source: Headquarters and the Regions will enter the information.

QA/QC Procedures: None

Data Quality Review: None
                                             IX-45

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Data Limitations: None

New/Improved Data or Systems: None


Performance Measure: 50% of recipients of compliance assistance from 10 projects have
      improved their use or handling of pollutants or improved their facility management
      practices or information.

Performance Database: Compliance Assistance Tracking System (CATS).
System includes information on industry, statutes, number of entities reached, outcomes expected
      to be achieved.

Data Source: Three Regions are piloting the projects and will be entering them into CATS.

QA/QC Procedures: Headquarters will review information entered into CATS for accuracy.

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None


Performance Measure: 500,000 facilities, states or technical assistance providers reached
      through targeted compliance assistance.

Performance Database: Compliance Assistance Tracking System (CATS).
System includes information on industry, statutes, number of entities reached, outcomes expected
      to be achieved.

Data Source: Headquarters and Regional compliance assistance staff will provide information.

QA/QC Procedures: Headquarters will review information entered into CATS for accuracy.

Data Quality Review: None

Data Limitations: None

New/Improved Data or Systems: None
Performance Measure: 200 compliance assistance tools developed
                                       IX-46

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       Performance Database: Output measure Compliance Assistance Tracking System (CATS). System
 }             includes information on industry, statutes, number of entities reached, outcomes expected
              to be achieved.

       Data Source: Headquarters and Regional compliance assistance staff will provide information.

       QA/QC Procedures: Headquarters will review information entered into CATS for accuracy.

       Data Quality Review: None

       Data Limitations: None

       New/Improved Data or Systems: None


       Performance Measure: All new EPA compliance assistance materials will be added to the
              Clearinghouse within 30 days of receipt.

       Performance Database: Internal tracking system. Headquarters will track timeliness using PC-
              based system.

       Data Source: Headquarters will report on progress.

       QA/QC Procedures: None

       Data Quality Review: None

       Data Limitations: None

       New/Improved Data or Systems: None


       Performance  Measure:  Increase Environmental  Management Systems (EMS)  use by
              developing tools, such as training and best practice manuals that encourage improved
              environmental performance.

       Performance Database: Internal tracking system is currently being developed.

       Data Source: Headquarters will report on progress.

       QA/QC Procedures: None

       Data Quality Review: None

"\
 '                                             IX-47

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Data Limitations: None

New/Improved Data or Systems: None
Performance Measure: 70%  of significant impacts identified  by  EPA are successfully
      mitigated.

Performance Database: §309 Effectiveness Study reviews environmental impact of Federal
      actions.

Data Source: Bi-annual analysis of Environmental Impact Statements (EIS) reviewed by EPA to
      determine the number of significant impacts identified and the percent of those impacts
      successfully mitigated.

QA/QC Procedures: Headquarters staff determine consistency in data reported during previous year
      with regional/federal Agency data.

Data Quality Review: Peer review by  Headquarters with regions who perform the  reviews.

Data Limitations: Does not fully measure success since it tracks only post-EIS changes,  not those
      resulting from pre-EIS consultations.

New/Improved Data or Systems: Additional capability provided by Lotus Notes will allow real
      time evaluation of mitigation measures.
Performance Measure: 100% of Clean Water Act (CWA) Construction grant and permit
      NEPA obligations are met.

Performance Database: Regional input of NEPA obligations

Data Source: Headquarters spot checks regions on quarterly basis.

QA/QC Procedures: General review by affected public and environmental community.

Data Qualty Review: Office of Water document control process.

Data Limitations:

New/Improved Data or Systems: System enhancement under review.
                                       IX-48

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Coordination with Other Agencies

       The Compliance Assistance program and the U.S. Department of Agriculture (USD A) have
created an Agricultural Compliance Assistance Center.  The program has in place two Interagency
Agreements with USDA to award funds to Land Grant Universities to develop compliance and
pollution prevention materials.

       The Compliance Incentives and Assistance program works closely with the states as they
provide an increasing amount of compliance incentives and assistance.  The compliance assistance
centers have been coordinating with the states to assist them in their outreach efforts to industry, to
facilitate their delivery of sector-specific regulatory information, to serve as the delivery mechanism
for their pollution prevention and compliance assistance material, and to build their capacity to meet
the environmental needs of the businesses in their states and localities.

       The Enforcement program works with states prior to and following enactment of state audit
privilege and immunity legislation to identify and express the Agency's policy and legal concerns.
EPA has adopted a pragmatic, problem-solving approach to addressing legal adequacy in specific
states that have enacted audit privilege and immunity laws. EPA and the state use a process under
which they identify any legal impediments to federal program authorization resulting from the state's
law. The impediments can then be addressed through  tailored statutory amendments, or a state
Attorney General opinion interpreting the law consistent with federal requirements, or both. EPA
has completed this process in ten states—Arkansas, Indiana, Michigan, Minnesota, Ohio,  South
Dakota, Texas, Utah, Virginia, and Wyoming, an increase of four states during the past year.

       The 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 to review and comment on proposed
federal actions, neither die National Environmental Policy Act nor § 309 of the Clean Air Act,
require a federal agency to modify its proposal to accommodate EPA's concerns. 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.
                                         IX-49

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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, 300i-l, 300J-4)

Clean Air Act section 113,114,303, and 309 (42 U.S.C. 7413,7414, 7603, 7609)

Toxic Substances Control Act (TSCA) sections 11,16, and 17 and TSCA Titles II and IV (15 U.S.C.
2610,2615,2616,2641-2656,2681-2692)

Emergency Planning and Community Right-to-Know Act section 325 and 326 (42 U.S.C. 11045,
11046)

Federal Insecticide, Fungicide, and Rodenticide Act sections 8, 9, 12, 13, and  14 (7 U.S.C. 136f,
136g, 136j, 136k, 1361)

Ocean Dumping Act sections 101,104B, 105, and 107 (33 U.S.C. 1411,1414B, 1415,1417)

National Environmental Policy Act (NEPA)

Antarctic Science, Tourism, and Conservation Act (ASTCA)

Endangered Species Act (ESA)

National Historic Preservation Act (NHPA)
                                       IX-50

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Goal 10: Effective Management

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Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Goal 10: Effective Management	X-l
        Executive Leadership	X-8
        Management Services, Administrative, and Stewardship	X-12
        Building Operations, Utilities and New Construction	X-25
        Provide Audit and Investigative Products and Services	 X-32

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification
                                 Effective Management
Strategic Goal: EPA will establish a management infrastructure that will set and implement the
highest quality standards for effective internal management and fiscal responsibility.

                                   Resource Summary
                                  (Dollars in Thousands)
    Goal 10   Effective Management

    Obj. 01   Executive Leadership

    Obj. 02   Management Services,
             Administrative, and Stewardship
    Obj. 03   Building Operations, Utilities and
             New Construction
    Obj. 04   Provide Audit and Investigative
             Products and Services
                    Total Workyears
FY 1999
Enacted
$626,625.4
$30,384.7
$197,641.9
$358,709.5
$39,889.3
2,575.0
FY2000
Enacted
$447,231.0
$33,547.1
$198,776.4
$171,375.0
$43,532.5
2,228.4
FY 2001 FY 2001 Req. v.
Request FY 2000 Ena.
$464,598.9
$37,066.7
$220,125.2
$161,518.1
$45,888.9
2,256.2
$17,367.9
$3,519.6
$21,348.8
($9,856.9)
$2,356.4
27.8
Background and Context

       Efforts 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 entire Agency workforce; and'
       •      Independent evaluation of Agency programs.

       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.  As environmental protection prepares to enter the next millennium, 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
                                           X-l

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industry and other community partners.  Public pressure continues to grow for EPA and other
agencies to accomplish their missions in the most efficient and cost-effective means possible. The
performance of this Goal is designed to deliver their services which enable EPA program offices to
reach their environmental protection goals in an efficient and cost-effective manner.

Means and Strategy

       The Agency will continue to provide vision and leadership as well as direction and policy
oversight for all its programs and partnerships. In doing so, EPA's strategy will focus on:

       •       Recognizing the special vulnerability of children to environmental risks and
              facilitating the intensified commitment to protect children's health;

       «       Preparing EPA for future challenges by building  the skills of its workforce and
              fostering diversity;

       •       Building and managing safe and healthy workplaces;

       *       Ensuring a high level of integrity and accountability in the management of grants and
              contracts;

       •       Encouraging testing and adopting innovative tools and technologies to achieve better
              protection of human health and the environment at less cost:

       •       Changing the way we do business by working collaborative!}' with stakeholders,
              cutting red tape and finding ways to work smarter and more efficiently. and managing
              for better results; and,

       *       Performing independent evaluations of Agency programs

       The Agency will continue its commitment to protect children's health by targeting resources
towards its many diverse children's activities, including working to assure that EPA's health-based
standards  consider risks to  children and to continue to develop sound scientific methods for
addressing risks to children from exposure to environmental pollutants. The Agency will also
provide policy direction and guidance on equal employment opportunity and civil rights. The
Agency's  Administrative Law Judges arid its Environmental Appeals Board Judges will issue
decisions on administrative complaints and environmental adjudications, respectively, in a timely
manner.

       To achieve effective management of and accountability  for EPA's  fiscal resources, the
Agency will improve capabilities  to make cost-effective investments for environmental results.
EPA will build on the success of its integrated planning, budgeting,  analysis and accountability
program while continuing to enhance its ability to provide the highest quality fiscal resources
                                          X-2

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management.   EPA   collaborates extensively  with partners and stakeholders  to forge the
partnerships required  for  shared  approaches to meeting the challenges of the Government
Performance and Results Act (GPRA). EPA consults with internal customers on fiscal management
services to meet their needs for timeliness, efficiency and quality.

       The Agency will continue to invest in human resources to ensure that it has the scientific and
technology skills needed for the future, and that the workforce reflects the talents and perspectives
of a growing multi-cultural society. This strategy will enable EPA to attract,  retain and further
develop a diverse workforce prepared to meet the Agency's current and future challenges.

       The Agency will provide a quality work environment which places high value on employee
safety and security and the design and establishment of state-of-the-art laboratories. These facilities
provide the tools essential for researching innovative solutions to current and future environmental
problems and enhancing our understanding of environmental risks. Plans for building operations
and new construction support existing infrastructure requirements that ensure healthy, safe and
secure work environments and reflect pollution prevention values of EPA, in addition to fulfilling
the scientific and functional requirements of our programs. EPA has adopted an aggressive strategy
to utilize energy savings performance contracts in order to reduce energy consumption significantly
over the next five years.

       In the contracts area, Agency efforts focus on selecting the appropriate contract vehicle to
deliver the best value for the taxpayer.  Performance based contracts  allow the  Government  to
manage for results, not process. Under this system the Government pays for results, not effort or
process, and contractors are encouraged to determine the best and most cost effective ways to fulfill
the Government's needs.  Performance based contracts save time and money for the Agency by
reducing unnecessary contract administration costs. This is accomplished by moving away from
cost reimbursement and level of effort to fixed price completion contracts. In addition, the Agency
will put increased emphasis on contract oversight, including speeding up  the contract processes
through fast-track system enhancements and automation efforts.

       Audit, investigative, and advisory services contribute to effective management by facilitating
the accomplishment of the Agency's mission. Specifically, audits and advisory  services lead to
improved economy, efficiency, and effectiveness in EPA business practices  and assist in the
attainment of environmental goals.  Investigations detect and deter fraud and other improprieties
which undermine the integrity of EPA programs and resources.
                                          X-3

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Strategic Objectives and FY 2001 Annual Performance Goals

Objective 01:  Executive Leadership

•      Evaluate the effectiveness of the economic guidance issued in 2000, "A Practical Guide to
       Valuing Children's Health Effects."

Objective 02:  Management Services, Administrative, and Stewardship

•      EPA continues improving how it measures progress in achieving its strategic objectives and
       annual  goals by increasing external performance goals and measures characterized as
       outcomes by 4% in the 2002 Annual Performance Plan.

•      EPA's fiscal management, processes,  operation, and  systems  reflect sound financial
       management principles.

Objective 03:  Building Operations, Utilities and New Construction

•      EPA will install a demonstration fuel cell at Ft. Meade Laboratory.

       EPA will ensure personnel are relocated to new space as scheduled.

•      EPA will ensure that all new  and ongoing construction  projects are progressing and
       completed as scheduled.

Objective 04:  Provide Audit and Investigative Products and Services

•      Provides independent audits, evaluations, and advisory services, responsive to customers and
       clients, leading to improved economy, efficiency and effectiveness in Agency business
       practices and attainment of its environment goals.
Highlights

       Agency management provides vision and leadership, and conducts policy oversight for all
Agency programs. 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. 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.

       In keeping with our commitment to protect children's health, the Agency will direct resources
toward the programs that will protect children from a range of environmental hazards. In 2001, the
                                         X-4

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Agency will focus on reducing asthma through reduction and avoidance of key asthma triggers,
including environmental tobacco smoke, prevalent indoor allergens and ambient air pollution.
Childhood lead poisoning is increasingly a problem that is occurring in isolated pockets, such as low
income minority neighborhoods, areas of older housing. Inspection and enforcement can be targeted
to address these areas with the most vulnerable children. EPA will focus inspection and enforcement
efforts in these targeted communities since, outside of federally-assisted and federally-owned
housing, there is no mandate for hazard evaluation and control in approximately 3 million low-
income units built before 1946. Disclosure should provide an incentive for action; enforcement and
compliance assistance is needed to ensure that the disclosure program works to inform the residents
of potential hazards in these units. EPA will ensure that its standards address the heightened risks
faced by children and that all covered regulations being revised or developed in EPA address
children's environmental health issues.

       The Agency expects to achieve cost effective investment in environmental protection and
public health through responsible management, increased analysis and accountability, and high
quality  customer service,  In 2001, EPA  will build on its progress in  linking resources  to
environmental results through goals-based fiscal resources management. The Agency will provide
more useful cost accounting information that will better inform environmental decision making.
EPA will make continued progress in evaluating the environmental results of its program activities.
Highlights of expected Agency 2001 achievements in effective management are:

       The Agency will continue to improve the accountability process that provides  timely
       performance information used in strategic and annual planning and budget formulation.

•      EPA will maintain a clean audit  opinion of the Agency's  financial statements that
       demonstrates the highest caliber resource stewardship and gives credibility and reliability to
       the Agency financial information.

*      EPA will substantially complete the implementation of a new payroll system that will reduce
       processing costs and burdens through use of efficient technology.

•      EPA will begin implementation of a long term solution for the replacement of the Agency's
       major financial system and ancillary specialized systems that  will better  integrate these
       systems with other Agency resource databases and administrative systems.

       The Agency will continue to strengthen pre-award and post-award management of assistance
agreements. For example, by 2001, in addition to planning to eliminate the close-out backlog of
non-construction grant ending before September 30,2000, EPA will eliminate the entire close-out
backlog for interagency agreements that ended before September 30,1997. In addition, in 2001, the
Agency will continue to improve efficiencies in the contract process, while saving taxpayers dollars,
through use of performance-based contracts and reduced use of cost reimbursable contracts. All new
contracts will be evaluated for possible award or conversion to performance based contracts.  In
                                          X-5

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addition, the Agency will put increased emphasis on contract oversight, including speeding up the
contract process through fast-track system enhancements and automation efforts.

       In 2001, the Agency will continue its workforce development strategy.  The purpose of this
initiative is to attract, recruit, develop  and deploy EPA's employees  to  address  the  critical
environmental issues of the 21st century. This initiative will implement a support staff development
pilot to improve the professionalism and performance of our clerical workforce; will identify and
develop career tracks for employees skills and tools requirements needed to fully develop in their
chosen occupation; and will develop leadership skills in employees throughout the organization
while improving the managerial competencies of our line managers. A significant component of the
initiative is the EPA Intern Program which is designed to  hire diverse, high performing individuals
who will become part of the Agency's future leadership.

       The Agency's building operations and new construction budget ensures a healthy, safe and
secure work environment for its employees, and integrates pollution prevention and state-of-the-art
technology into its daily activities.  The Agency will complete construction of the new consolidated
research lab at Research Triangle Park  in North Carolina. New construction and renovation
activities will continue at the New Headquarters project.  EPA will also address critical repairs in
EPA facilities related to employee health and safety.  These facilities provide the tools essential for
researching innovative solutions to current and future environmental problems and enhancing our
understanding of environmental risks. The Agency will also implement a Laboratories for the 21st
Century "Labs 21" initiative, which will include a demonstration fuel cell proj ect at EPA's Ft. Meade
laboratory. This is an initiative in accordance with the Executive Order issued on June 3,1999, that
set energy and pollution targets for all federal facilities, including laboratories.

       The Office of Inspector General (OIG) will conduct and supervise independent and objective
audits and investigations relating to Agency programs and operations. The OIG will also review and
make recommendations regarding existing and proposed legislation and regulations.  The Office of
Audit will conduct four types of audits: program, financial  statement, assistance agreement, and
contract audits. The Office of Investigations will perform four types of investigations: program
integrity, assistance agreement, contract and procurement, and employee  integrity investigations.
In addition, the OIG will provide advisory/consulting services and program evaluations. Combined,
these activities promote economy, efficiency, and effectiveness within the Agency, and prevent and
detect  fraud, waste, and abuse. 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.
                                          X-6

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External Factors

       OCFO would be affected by new legislation that would impose major new requirements
necessitating a shift in existing priorities, absent any commensurate increase in resources, in areas
such as strategic planning, performance measurement, and/or resource and financial management.

       OCFO and OARM would be impacted by new administrative requirements in areas such as
accounting standards and reporting from central offices such as OMB or Department of Treasury or
other central offices that would impose new requirements for Agency financial and other systems.

       OCFO would be impacted by limited availability of baseline environmental data required to
measure results and make decisions relating resources to results.

       The ability of the Office of Investigations, Office of Inspector General, to accomplish its
annual performance goal is dependent, in part, on external factors.  Indictments, convictions, fines,
restitutions, civil recoveries, suspensions, and debarments are affected by the actions of others (e.g.,
the Department of Justice).  In addition,  the prosecutive criteria established within various
jurisdictions (e.g., dollar thresholds) can affect the number of cases.
                                          X-7

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

                                  Effective Management


Objective #1:  Executive Leadership

       The Office of the Administrator and Deputy Administrator will provide vision and leadership
(within the Agency, nationally, and  internationally) as well as executive direction and policy
oversight for all Agency programs.
                                    Resource Summary
                                   (Dollars in Thousands)
                                         FY1999
                                         Enacted
           FY2000
           Enacted
FY 2001    FY 2001 Req. v.
Request     FYZOOOEna.
Executive Leadership

    Environmental Program & Management

    Hazardous Substance Superfund

       Total Workyears
$30,384,7      $33,547.1      $37,066.7       $3,519.6

$30,229.5      $33,382.7      $36,918.2       $3,535.5

  $155.2         $164.4         $148.5        ($15.9)

   268.8          274.9          282.4           7.5
                                            X-8

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                                     Key Programs
                                  (Dollars in Thousands)

EMPACT
Civil Rights/Title VI Compliance
Immediate Office of the Administrator
Administrative Law
Environmental Appeals Boards
Rent, Utilities and Security
Administrative Services
Regional Management
FY 1999
Enacted
$81.3
$1,637.1
$2,791.3
$2,324.3
$1,660.3
$0.0
$67.2
$0.0
FY 2000
Enacted
$563.6
$1,331.7
$3,729.8
$2,470.3
$1,880.8
$2,624.4
$315.1
$29.2
FY2001
Request
$526.1
$1,404.5
$3,008.2
$2,465.0
$1,865.2
$2,941.6
$287.9
$30.6
FY 2001 Request

       To meet the challenges of the 21st century, Americans are calling for a new generation of
environmental protection — one that is based on common sense and  partnership.  They are
challenging their leaders to adopt tough but achievable goals for the environment and to offer people
and institutions the flexibility to find cost-effective ways to achieve those goals.  The Immediate
Office of the Administrator and its Regional counterparts will provide the vision and leadership
needed to enable EPA to meet its commitments to protect public health and the environment in the
21st century.

       In 2001, the  Agency  will continue to honor its obligations to protect children  from
environmental hazards by targeting resources towards the Agency's many  diverse children's
activities. While addressing children's environmental health issues in all areas, the Agency will
target its emphasis on asthma and lead. Major activities related to asthma in children will reduce the
frequency and severity of asthma attacks by focusing on prevention and management of asthma
among  at-risk children through reduction and  avoidance of key  asthma triggers, including
environmental tobacco smoke, prevalent indoor allergens (e.g., cockroaches, dust mites, molds), and
ambient air pollution (e.g., particles and  ozone).  Major activities related to lead will  support
inspection to ensure compliance with the lead-based  paint  rules addressing disclosure, pre-
renovation, training and certification, and lead debris. When violations are found during inspections,
EPA will need to follow up with ease development and enforcement actions. As a national policy,
EPA will ensure that its standards address the heightened risks faced by children.  All covered
                                          X-9

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regulations being revised or developed in EPA will address children's environmental health issues.
In 2001 .an independent evaluation will be conducted of the effectiveness of the Agency's economic
guidance entitled  "A Practical Guide to Valuing Children's Health Effects".  The Office of
Children's Health Protection expects to issue the guide in FY 2000.

       Policy direction and guidance will be provided within the Agency on equal employment
opportunity, civil rights and diversity issues.  EPA will process  discrimination complaints and
develop,  administer and monitor  the  implementation of affirmative employment programs.
Furthermore, EPA will manage special emphasis programs designed to improve the representation,
utilization, and retention of minorities and women in the Agency's workforce. Finally, the external
compliance program, including Title VI of the Civil Rights Act of 1964, will be administered since
it requires nondiscrimination in programs and activities receiving  financial assistance from EPA.

       The Environmental Appeals Board (EAB) will issue final Agency decisions in environmental
adjudications on appeal to the  Board.  These decisions are the end  point in the Agency's
administrative enforcement and permitting programs. The right of affected persons to appeal these
decisions within the Agency is conferred by various statutes, regulations and constitutional due
process rights.

       The Administrative  Law Judges (ALJs) will preside over and issue decisions in  cases
initiated by administrative complaints filed under EPA's enforcement program. The ALJs provide
hearings to those accused of environmental violations under various environmental statutes. In
addition, the ALJs have increased use, in recent years, of alternative dispute resolution techniques
in facilitating the settlement of cases and,  thereby, avoiding more  costly litigation.
FY 2001 Change from FY 2000 Enacted

EPM

       (+$1,000,000, +7.0 FTE) Reflects management resources shifted from the old Office of
       Policy to the Office of the Administrator as a result of a reorganization., as well as increased
       workforce costs,

•      (-$76,000, -1.0 FTE) Reflects resources provided to OARM to support some administrative
       functions and responsibilities for which OARM has management authority.

•      (4150,000, -2.0 FTE) Reflects decreased emphasis inregional activities under this objective.
                                         X-10

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Annual Performance Goals and Performance Measures
Ctiildern's Health Effect of Asthma and Lead

In 2001     Evaluate the effectiveness of the economic guidance issued in 2000, "A Practical Guide to
           Valuing Children's Health Effects."

In 2000     Evaluate health outcomes related to environmental health effects for asthma and lead
           addressed in 11 Pilot Child Health Champion Communities.

In 1999     EPA's FACA identified more man 5 standards in FY99 to be evaluated- EPA planned to
           complete the selection of the standards to be evaluated in FY 1999 and that the program
           offices would do the review when the evaluation was complete. These evaluations are in
           various stages of completion now.

Performance Measures:                            FY 1999       FY2000       FY2001
                                              Actuals       Estimate       Request

Re-evaluate standards to ensure they consider
children'sspecial health needs                       0                                     standards

Issue report on health outcomes                                   1                        report

evaluate an independent report on guidance                                        1         report

Baseline:    A contractor will be hired in FY 2001 to evaluate and report back to EPA on the effectiveness
           of guidance issued in FY 2000. The report will be completed and provided to EPA in FY
           2001.
Verification and Validation of Performance Measures

Performance Measure: Evaluate the effectiveness of the economic guidance issued in 2000, "A
Practical Guide to Valuing Children's Health Effects."

Performance Database; Output measure-internal tracking. No database.

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A
Coordination with Other Agencies

                                            X-ll

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       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.  There are three subcommittees and four
priority area work groups. EPA is represented on all of these groups. Therefore, there is substantial
coordination on goals, priorities and actions taken by all the agencies.
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-12

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                             Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

                                   Effective Management


Objective # 2: Management Services, Administrative, and Stewardship

       OARM and  OCFO will provide  the  management services, administrative support and
operations to enable the Agency to achieve its environmental mission and to meet its fiduciary and
workforce responsibilities.
                                    Resource Summary
                                   (Dollars in Thousands)
                                         FY1999
                                         Enacted
            FY2000
            Enacted
            FY2001    FY2001Req.v,
            Request     FY 2000 Ena.
Management Services, Administrative, and
Stewardship

    Environmental Program & Management

    Science & Technology

    Leaking Underground Storage Tanks

    Oil Spill Response

    Inspector General

    Hazardous Substance Superfund

       Total Workyears
$197,641.9
$198,776.4
$220,125.2
$21348.8
$155,289,7
$326.0
$988.7
$4,3
$82.0
$40,951.2
1,868.0
$160,718.3
$102,1
$1,198.0
$5.7
$0.0
$36,752.3
1,568.8
$173,887.7
$129.8
$1,237.7
$6.2
$0.0
$44,863.8
1,592.8
$13,169.4
$27.7
$39.7
$0.5
$0.0
$8,111.5
24.0
                                           X-13

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                                    Key Programs
                                 (DoEars in Thousands)

EMPACT
Reinventing Environmental Information (REI)
Superfund - Maximize PRP Involvement (including reforms)
Environmental Finance Center Grants (EFC)
Human Resources Management
Contracts Management
Grants Management
Information Technology Management
Planning and Resource Management
Rent, Utilities and Security
Administrative Services
Regional Management
FY1999
Enacted
$0.0
$2,507.1
$967,7
$1,065.0
$21,932.0
$24,986.0
$8,568.8
$21,975.1
$51,897.1
$0.0
$6,431.4
$42,535.0
FY 2000
Enacted
$36.1
$0.0
$0.0
$1,250.0
$0.0
$0.0
$0.0
$15.689.9
$44,079.9
$23.515^8
S33.312.0
S6.050.8
FY2001
Request
$0,0
$0.0
$0.0
$480.0
$0.0
$0.0
$0.0
$14,641.4
$53,739.9
$27,803.6
$37,235.5
$6,731.5
FY 2001 Request

       In 2001, the Agency will make measurable progress in Its responsibilities for developing,
managing and supporting a goals-based management system for the Agency. This work involves
planning, budgeting, analysis and accountability for environmental results; Agency-wide budget,
resources management and  financial  management functions, including budget formulation,
preparation and execution, and payroll and disbursements controls and systems.  To accomplish its
goals and objectives, EPA will continue to consult with the partners and stakeholders (states, tribes,
local government, other federal agencies, environmental associations, industry groups, the EPA
Science Advisory Board) and the Congress and OMB to build the collaboration required to develop
environmental  outcomes that can be measured in short-term  increments as well as long-term
environmental goals. The Office of the Chief Financial Officer (OCFO) continually coordinates with
National Program Managers (NPMs), consults with the lead Region on program development and
implementation, and actively seeks customer input on ongoing efforts to achieve greater efficiencies
                                         X-14

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through streamlining,  improved performance, customer service and systems development and
integration.

       In 2001  the Agency will continue to focus on Strategic Planning, Annual  Budget and
Planning, Financial Services, Financial Management, Analysis and Accountability. Through these
activities the Agency provides executive direction for the Agency's budget, financial,, and resources
management functions; develops and manages a results-based management system for the Agency
that involves strategic planning, analysis and accountability;  manages the annual planning and
budgeting process for the Agency which includes overseeing the development of annual performance
plans, budget formulation and execution; provides financial accounting and fiscal services to the
Agency, such as payroll, travel and vendor payments; operates and maintains the Agency' s integrated
financial management system; provides support to the Agency's cost recovery efforts; and coordinates
the planning and budgeting process for the Working Capital Fund. EPA provides leadership for
implementing EPA's environmental financing program, which helps create sustainable environmental
systems through grants to States, localities and small businesses for services such as training, expert
advice and education and analysis.

       In 2001 resources will be invested in the continued development and management of the
Agency's integrated planning, budgeting, analysis and accountability (PBAA) process.  The Agency
will continue to provide technical support and assistance to the NPMs and Regions to help ensure that
EPA resources  are focused on reducing the  most significant risks to human health and the
environment. We will work closely with the NPMs to link annual plans to the long-term goals and
objectives of the Agency through the strategic  planning process.  Our continued work with state
governments through the Environmental Council of the States (ECOS) will ensure collaboration and
cooperation with respect to short- and long-term goals and objectives. We will develop the Agency's
Annual Performance Plan, and involve the Agency's stakeholders and 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 Manager's 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.

       The Agency will develop and implement the budget and financial management processes and
information systems to enhance budget and cost analysis capabilities and improve EPA's ability to
manage for results. EPA benchmarked its major financial management functions against public and
private sector organizations,  including industry top performers.  In comparison with  other top
organizations, EPA  devotes a lower percentage of its workforce to the overhead  of financial
management. However, EPA's financial management systems costs are higher than public and
private sector averages because EPA has not invested in efficient new information technology. EPA
plans to reduce management overhead costs of its maj or financial and payroll systems. In 2001, EPA
will make significant progress in implementing a new payroll system that reduces processing costs
and customer burden, provides for cost-saving efficiencies and supports Agency reinvention and
streamlining initiatives such as electronic time-keeping, automated labor distribution process, and
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integrated payroll and personnel data management functions. EPA will recommend a long term
solution for the replacement of the Agency's financial management system and ancillary  systems
which will better integrate Agency resource management systems. To reduce overhead costs and
burden, EPA will continue increased Electronic Funds Transfer payments to employees, vendors,
grantees and other Federal Agencies. By 2001, EPA will meet or surpass the Federal requirement
for 85% overall Electronic Funds Transfer payments.

       In 2001, EPA will develop the Agency' s Annual Plan and Budget consistent with the strategic
plan and  annual budget, further develop EPA's Budget Automation System (BAS) to automate the
Agency's overall budget process, and continue the development of cost accounting capabilities that
enable Agency managers and stakeholders to know  the full cost of Agency programs and the
resources associated with the achievement of environmental results.  EPA  will ensure effective
stewardship of EPA resources through provision of core accounting and financial services and
through maintenance of the basic infrastructure of financial management policies and systems.

       EPA will develop the Agency's second Annual Performance Report (APR) in 2001. This
Report will provide the  Congress with performance information pertaining to the key Annual
Performance Goals and Annual Performance Measures listed in the 2000 Annual Performance Plan.
The APR will be based on information in the Agency-wide accountability system that the Agency
established in 1999, plus additional information on program results to be provided by the Agency's
"goal teams."

       EPA plans to use  2001 resources to provide timely, accurate data to promote informed
decisions. In order for EPA to achieve its environmental mission, an infrastructure must exist to
demonstrate and document how EPA's resources result in improvement of public health and the
environment over the long term.  Through cost accounting, the Agency will  provide financial
reporting which links investments with environmental results.  The 2001 Annual Performance Goals
are focused on an integrated planning, budgeting, analysis and accountability process that helps the
Agency deliver the most environmental results possible given the resources appropriated by Congress.
In doing this, we are helping the Agency fully comply with the letter and spirit of GPRA.

       This objective also provides the leadership to ensure sound management of administrative
services throughout the Agency, in both headquarters and the regions. The objective includes a broad
range of functions, including: management of human resources, contracts  and grants, facilities
operations, health and safety, environmental compliance. In 2001, the focus of this objective will be
in three critical areas.

       The first priority is to ensure a high level of integrity and accountability in the management
of grants and contracts. The Agency will continue to strive towards better pre-award and post-award
management of assistance agreements.  In 2001, EPA will eliminate the entire  close-out backlog for
interagency agreements that ended before September 30, 1997.  The Agency will also establish
procedures so that future backlogs are avoided. In addition, in 2001, EPA will implement the post
award/closeout module of the Integrated Grants Management System (IGMS) in three Regions. This
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is  another step forward in EPA's efforts to utilize electronic commerce  to fully  automate the
assistance process from cradle to grave.

       In the contracts area, Agency efforts focus on selecting the appropriate contract vehicle to
deliver the best value for Agency's mission and the taxpayer, including reducing the use of cost-
reimbursable contracts.  All contracts will be evaluated for possible award or conversion to
performance based contracts.  In addition, the Agency will put increased emphasis on contract
oversight, including speeding up the contract processes through fast-track system enhancements and
automation efforts.

       The second priority reflects the need to invest in our human resources to ensure that EPA has
the science and technology, and interdisciplinary skills  needed for the future and that EPA's
workforce reflects the talents and perspectives of a growing multi-cultural society. To support this
priority, the Agency will continue to implement its Workforce Development Strategy. The purpose
of this effort is to attract, recruit, develop, and deploy  EPA's employees to address the  most
significant environmental goals. A significant component of the initiative is the EPA Intern Program
which is designed to hire diverse, high performing individuals who will become part of the Agency' s
future leadership.  The Agency  will utilize its newly developed Agency-wide cross-cutting core
competencies to define necessary skills for effective job  performance in support, mid-level, and
leadership positions; and assess employees against established occupational competencies.

       The third priority is to improve the Agency's infrastructure by providing a healthy, safe and
secure work environment and to  ensure that the scientific  and functional requirements of our
programs are fulfilled. The personnel funded in this objective provide facilities operations and
maintenance services to the Agency's headquarters and  regional offices.  The services include
management of mail, transportation, printing, space utilization, security, postage, and health safety
and environmental compliance activities.   The Agency will continue an aggressive approach to
strengthen pollution prevention and energy conservation in its facilities. The Agency's Labs 21
initiative supports the President's  Executive Order issued on June 3, 1999, that set energy and
pollution targets for all federal facilities, including laboratories. The Labs 21  initiative will establish
and promote a national energy efficiency and pollution prevention agenda that public and private
entities can endorse. Through this important initiative, EPA will establish itself as a leader among
federal agencies supporting the Administration's pollution prevention efforts.

       EPA will develop and issue guidance for executive agencies to use when purchasing goods
and services in response to President Clinton's Executive Order 13101 to  show a preference for
"environmentally preferable" products and services. "Environmentally preferable" products and
services have a lesser or reduced effect on human health and the environment when compared to other
products and services that serve the same purpose.

       In 2001, the Agency will continue to modernize its information systems in cooperation with
States. Modernization efforts will focus on data integration and data quality. These projects will be
planned and managed under an Agency-wide process that includes the Clinger-Cohen Act investment
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review and oversight by EPA management.  EPA's Information Security Program will continue
activities to safeguard Agency information and information systems. A stronger emphasis will be
placed on strengthening security plans and organizational security programs through additional
reviews and oversight on an Agency-wide scale.  Increased efforts will also take place to raise the
awareness level of the EPA workforce to ensure managers understand their individual responsibilities
for protecting information resources.

       Because of EPA's success with the Year 2000 (Y2K) change over, EPA does not expect there
will be any problems associated with the Year 2000 (Y2K) continuing into 2001. The primary
purpose of the Y2K program  in  2001 will be to  provide  any necessary follow-up  to Y2K
implementation.

       During 2001, EPA will continue to provide Information Technology and Communication
Services to its internal Agency clients.  These services range from mainframe, supercomputer, and
distributed processing  services to desktop computing  support including email, voice  mail,
Intranet/Internet connections, training, local area network operations, and application development
consulting.
FY 2001 Change from FY 2000 Enacted

MULTI-APPROP

       (+$4,000,000 EPM, +$ 1,000,000 SF) EPA will finalize the implementation of a new payroll
       system that will reduce processing costs and burdens through use of efficient technology.

       (+$2,979,500  EPM, +$1,337,000 SF, $25,300  LUST) Payroll  Adjustment -  Payroll
       Adjustment - Investment provides for cost of living increases expected in 2001 (OCFO).

       (+$1,388,900 EPM, +$10,700 S&T, $717,000 SF) Transit Subsidy - This increase supports
       the expected rise in participation due to the ongoing headquarters relocation to the new
       complex at Federal Triangle. It is anticipated that participation in the program will expand
       since parking is not as readily available as at the current headquarters location and mass
       public transportation is more convenient. This investment also provides resources for an
       increase in the participation in the transit subsidy program in the regions.
EPM
       (-$1,102,700; +9.1 FTE) Reflects management resources shifted from the old Office of Policy
       to the Office of the Administrator as a result of a reorganization (-7.0 FTE), resources
       provided to OARM to support some administrative functions and responsibilities for which
       OARM has management authority (-2.0 FTE), as well as distribution of Working Capital
       Fund resources which had been centrally managed in the old Office of Policy.
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       (+$4,667,000 EPM, +$616,500 SF)  Payroll Adjustment - Investment provides for cost of
       living increases expected in 2001,
SUPERFUND
       (+$1,221,100) Provides additional resources for mainframe, supercomputer, and distributed
       processing  services  to  desktop  computing  support  including  email,  voice  mail,
       Intranet/Intemet connections,  training, local  area network  operations, and  application
       development consulting.
Annual Performance Goals and Performance Measures

GPRA Implementation

In 2001     EPA's fiscal management,  processes, operation, and systems reflect  sound financial
           management principles.

In 2000     100% of EPA's  GPRA  implemenation  components (planning, budgeting, financial
           management, accountability, and program analysis) are completed on time and meet customer
           needs.

In 1999     EPA can plan and track performance against annual goals and capture 100% of costs through
           the new PBAA structure, based on modified budget and financial accounting systems, a new
           accountability process which was put in place in the 3rd quarter, and new cost accounting
           mechanisms.

Performance Measures:                             FY 1999       FY2000        FY2001
                                                Actuals        Estimate        Request

The Annual Performance Report is delivered to Congress
and reflects all EPA performance measures of
Congressional interest as identified in the Annual
Performance Plan.                                               03/31/2000

The revised Strategic Plan will be produced and distributed.             09/30/2000

Agency financial statements receive an unqualified audit
opinion and are timely and provide programmatic and
financial information useful to policymakers and
interested parties.                                                09/30/2000

Agency payroll and related systems are Year 2000
compliant in time to achieve invisible processing of
payroll transactions.                                16-M-1999

The Accountability System tracks accomplishments
against annual performance goals and measures and
provides the information necessary for evaluating and
adjusting program activities.                         3\12\99
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Develop specifications for replacement of our central
financial management systems and ancillary specialized
systems, and begin the evaluation process.                              09/30/2000

Agency financial statements are prepared and audited
by March 1 and receive a clean opinion.                                               03/01/2001

Baseline:   FY 2001 APP APG/PM outcome-orientation.

Payroll Systems Analysis

In 2001    As one component of streamlined financial services, completed analysis of existing and new
           payroll systems' processes for payroll and related functions.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Status of analysis.                                                                  09/30/2001

Baseline:   Work completed in FY 2000.

Improved Performance Measures

In 2001    EPA continues improving how it measures progress in achieving its strategic objectives and
           annual goals by increasing external performance goals and measures characterized as
           outcomes by 4% hi the FY 2002 Annual Performance Plan.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

Number and percentage of outcome-oriented APGs/PMs
in Agency's FY 2002 Annual Performance Plan Submission.                             4

Baseline:   FY 2001 APP APG/PM outcome-orientation.

Core Financial Services

In 2001    Streamline the delivery of core financial services to reduce customer burden and improve
           efficiency and cost effectiveness of key services.

Performance Measures:                              FY 1999        FY2000        FY2001
                                                  Actuals         Estimate        Request

The CFO core financial management standards.                                        100        Percent

Baseline:   FY 1999 and 2000 data.
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Workforce Improvement

In 2001     EPA will improve the capability of its workforce by: workforce & succession planning;
            leadership development courses; mid-level employee cross-functional/business acumen skill's
            development courses; support critical competency enhancement training; and recruitment &
            development of new EPA Interns.

In 2000     EPA will improve the capability of its workforce by: formalizing a leadership development
            approach; rolling out a training curriculum to enhance necessary cross-functional skills; clearly
            identifying and defining support staff career paths; and continuing to hire talented and diverse
            individuals.

In 1999     We will continue to improve the quality, effectiveness and efficiency of EPA's workforce by
            hiring diverse and talented interns. We hired a total of 22 interns in FY 1999

Performance Measures:                               FY 1999       FY2000        FY2001
                                                   Actuals        Estimate        Request

Number of Interns hired under the EPA Intern Program.  22             60             60          Interns

Baseline:    The baseline in FY 2000: four pilots for Leadership Development conducted; 12 interpersonal
            and interdisciplinary competencies addressed in training curriculum; 4 support staff career
            paths identified, and; 60 interns are hired under, the EPA Intern program.

Utilization of Performance-based Contracts

In 2001     EPA will improve the quality, effectiveness, and efficiency of EPA's acquisition and contract
            management  process  by  increasing  the  percentage  of  new contracts  utilizing
            performance-based statement of works.

In 2000     EPA will improve the quality, effectiveness, and efficiency of EPA's acquisition and contract
            management process by increasing the percentage of contracts utilizing performance-based
            statement of works from 10% to 11%.

In 1999     This goal helped to ensure a high level of integrity and accountablility in the management of
            contracts.  EPA exceeded its goal of 10% and was able to award 15% of its contracts as
            performance-based in FY 1999.

Performance Measures:                               FY 1999       FY2000        FY2001
                                                   Actuals        Estimate        Request

Percentage of new contracts utilizing
 performance-based statements of work.                15             11             11          Percent

Baseline:    Baseline is 11% in FY 2000,10% in FY 1999,5% in FY 1998, and 0% in FY 1997.

Grants Management

In 2001     EPA will eliminate the closeout backlog of non-construction grants which ended before
            9/30/2000
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In 2000     EPA will improve the quality, effectiveness & efficiency of grants management & award
           process by eliminating closeout backlog for non-construction grants ended before 9/30/97 &
           increasing the number of Grants Management Offices awarding grants through the Integrated
           Grants Management System(5 to 11)

In 1999     EPA has completed the development of the IGMS Awards Module. IGMS will strengthen our
           relationships with our environmental partners, improve the speed and user-friendliness of the
           grant process, and enhance our post award and closeout management.

In 1999     EPA continues to make significant progress in Grants Closeout and Oversight of Assistance
           Agreements. We are committed to eliminating the non-construction grants closeout backlog
           by My 2000. As of Sept 30, 1999, EPA has closed all but 1 (CA) of 364 projects which
           ended before October 1,1990.

Performance Measures:                            FY 1999        FY2000       FY2001
                                               Actuals        Estimate       Request

Number of regions that have implemented the awards
module.                                         9                                       Regions

Percentage of non-construction grants closed out which
ended before 9/30/97.                              97             100                      Percent

Number of Grants Mangement Offices  awarding
grants through the Integrated Grants Management
Systems (IGMS).                                               10            11         Offices

Percentage of non-construction grants closed out which
ended before 9/30/2000.                                                        100        Percent

Baseline:    As of 10/1/98, the Agency had 364 projects to close which ended before 10/01/90.
Verification and Validation of Performance Measures

Performance Measure: Number and percentage of outcome-oriented APGs/PMs in Agency's
FY 2002 Annual Performance Plan submission.

Performance Database: Internal tracking using the Budget Automation System (B AS). Will conduct
a manual assessment of Congressional PMs characterized as outcomes.

Data Source: BAS and OCFO staff evaluation

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations: N/A
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New/Improved Data or Systems: N/A

Performance Measure: Agency financial statements are prepared and audited by March 1 and
receive a clean audit opinion.

Performance Database: Output measure. No database,

Data Source:  Auditors' Report

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations:  N/A

New/Improved Data or Systems:  N/A


Performance Measure: Streamline the delivery of core financial services to reduce customer
burden and improve efficiency and cost effectiveness of key service as measured by the CFO
core financial management standards.

Performance Database: Internal tracking. No database.
Data Source:  IFMS and financial reports

QA/QC Procedures: N/A

Data Quality Review: N/A

Data Limitations:  N/A

New/Improved Data or Systems:  N/A


Performance Measure: As one component of streamlined financial services, complete analysis
of existing and new payroll systems' processes for payroll and related functions, as measured
by the status of the analysis.

Performance Database: Output measure — internal tracking. No database.

Data Source:  OCFO

QA/QC Procedures: N/A

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Data Quality Review: N/A

Data Limitations: N/A

New/Improved Data or Systems:  N/A


Coordination with Other Agencies

       To achieve its mission, OCFO has undertaken specific coordination efforts with federal and
state agencies and departments through four separate vehicles: 1) the National Academy of Public
Administration's Consortium on Improving Government Performance; 2) Agency representation as
a member of the Natural Resources Performance Measures Forum, which consists of 16 departments
or bureaus involved in the management  or protection of natural resources; 3) participation hi the
Healthy People Consortium which is an alliance of federal, state and territorial public health, mental
health, substance  abuse  and environmental agencies; and 4) active contributions to standing
interagency management committees, including the Chief Financial Officers Council, the Federal
Financial Managers' Council and the Presidents' 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 President Clinton's 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
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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
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                           Environmental Protection Agency

           FY 2001 Annual Performance Plan and Congressional Justification

                                Effective Management


Objective # 3: Building Operations, Utilities and New Construction

       0ARM will provide the Agency with a quality work environment that considers employee
safety and security, building operations, utilities, facilities, new construction, repairs and pollution
prevention within Headquarters and nationwide.
                                  Resource Summary
                                 (Dollars in Thousands)

Building Operations, Utilities and New
Construction
Environmental Program & Management
Science & Technology
Building and Facilities
Leaking Underground Storage Tanks
Oil Spill Response
Inspector General
Hazardous Substance Superfund
Total Workyears
FY 1999
Enacted
$358,709.5
$226,552.6
$7,423.2
$56,948.0
$1,119.6
$659.9
$4,011.9
$61,994.3
55.4
FY 2000
Enacted
$171,375.0
$73,503.6
$9,008.9
$62,362.1
$1,168.2
$521.9
$0.0
$24,810.3
10.4
FY2001 FY2001Req.v.
Request FY 2000 Ena.
$161,518.1
$90,449.5
$21,607.0
$23,930.5
$1,026.1
$537.9
$0.0
$23,967.1
9.1
($9,856.9)
$16,945,9
$12,598.1
($38,431.6)
($142.1)
$16.0
$0.0
($843.2)
(1-3)
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                                     Key Programs
                                  (Dollars in Thousands)

Superfiind - Maximize PRP Involvement (including .reforms)
New Construction: New Headquaters Project
New Construction :RTP New Building Project
Facility Operations: Repairs and Improvements
Facility Operations: Security
Facility Operations: Agency Rental/ Direct Lease
Facility Operations: Agency Utilities
Regional Program Infrastructure
Regional Science and Technology
Rent, Utilities and Security
Administrative Services
FY 1999
Enacted
$32,1
$15,945.3
$36,000,0
$15,428,0
$12,962.2
$170,571.8
$10,015.2
$66,532.2
$0.0
$0,0
$0.0
FY2000
Enacted
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$29,883.3
$1,372.5
$4,476.6
$1,283.7
FY 2001
Request
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$28,670.4
$1,372.5
$7,122.5
$1,328,1
FY 2001 Request

       This objective supports the Agency' s goal for Effective Management through the construction
of new facilities, and the design and establishment of state-of-the-art laboratories. These facilities
provide the tools essential for researching innovative solutions to current and future environmental
problems and enhancing our understanding of environmental risks. EPA is well engaged in the work
of reducing greenhouse gases and other power generation emissions resulting from energy consumed
by operation of these facilities. In 2001, the Agency will continue to optimize operating efficiencies
and encourage the use of new and advanced technologies and energy savings performance contracting.

       The 2001 budget for the Agency's building operations and new construction supports existing
infrastructure requirements that ensure healthy, safe and secure work environments that reflect the
pollution prevention values of EPA and help fulfill the scientific and functional requirements of our
programs.
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Agency Facilities:

       New construction and space modification activities support funding for the new Research
Triangle Park complex and the New Headquarters consolidation project.  The transition costs
associated with occupying the Research Triangle Park complex will continue in 2001 and include
expenditures for decommissioning (the process necessary to meet federal requirements to close down
the old facility in an environmentally acceptable manner), utilities, and furniture to achieve optimum
space utilization. Additional funds for telecommunications and move related costs are also required
for the new Headquarters consolidation.

Repairs and Improvements:

       The Agency will address critical repairs related to employee health and safety, and will ensure
that our facilities are in compliance with environmental statutes. EPA will support program required
alterations  needed to accomplish the Agency's mission,  move-related alterations, as  well  as
emergency repairs and maintenance for our laboratory facilities.

Facilities Operations:

       The facilities operations in both headquarters and the regions include space utilization;
preventive maintenance of existing space; property management; printing services: postage and mail
management services;  transportation services; recycling; and health, safety and environmental
compliance activities, including medical monitoring, technical assistance, audits, training,  laboratory
operations, and telecommunications.  The personnel required to manage these services are funded in
Goal 10 objective 2 while the extramural costs are funded in this objective.
FY 2001 Change from FY 2000 Enacted

MULTI-APPROP

•      (+$4,690,100 EPM, +$11,724,000 S&T) The new RTP facility will provide state of the art
       labs for EPA's flagship research center. Additional resources are required to provide for
       furniture design and installation, moving expenses associated with the transition from several
       scattered facilities to one campus, and overlap services for the period of the moves (utilities,
       security, custodial services). Additional resources are also required  to  continue  the
       environmental due diligence process necessary to meet federal requirements to close down
       the old facility in an environmentally acceptable manner.

       (+$1,000,000 EPM, +$1,800,000 B&F, +$1,000,000 S&T) In 2001 the Agency will initiate
       a Laboratories for 21 * Century program.  This program will include a demonstration fuel cell
       at EPA's Ft. Meade laboratory. The program will be the catalyst for awarding Energy Savings
       Performance Contracts at EPA labs as well as creating a funding mechanism that will enable
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EPM
B&F
       the Agency to explore alternative energy production by the cleanest, least environmentally
       intrusive and most efficient conversion of fuel.
       (+$7,568,800) This increase reflects restoration of reductions taken in 2000. This increase
       will be used to maintain facilities operations and  maintenance services to the Agency's
       headquarters and regional offices. The services include management of mail, transportation,
       printing, space utilization, postage and health safety and environmental compliance activities.
       (-$36,700,000) This disinvestment recognizes savings resulting from the completion of the
       construction of the consolidated laboratory at Research Triangle Park,

       (-$3,800,000) Redirected to fund the Laboratories for 21 * Century program to create a funding
       mechanism that will enable the Agency to explore  alternative energy production by the
       cleanest, least environmentally intrusive and most efficient conversion of fuel.
Annual Performance Goals and Performance Measures

Energy Consumption Reduction

In 2001     EPA will implement 5 energy saving projects at EPA owned facilities.

In 2000     EPA will improve the quality, effectiveness of EPA's facilities management process by
           reducing EPA's total energy consumption in EPA owned buildings by 20% over 1985 baseline
           (400,000 BTUs per square foot), or down to 320,000 BTUs per square foot.

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 polution
           preventiong at 4 labs.

Performance Measures:                           FY 1999       FY2000        FY2001
                                              Actuals        Estimate        Request

Improve energy efficiency and reduce energy
consumption in EPA labs.                         4                                       Labs

Energy consumption of BTUs per square foot.                         320,000                   BUTs
                                                                                      per Sq/Ft

Number of energy saving projects at EPA owned facilities.                            5          Projects

Baseline:   In FY 2000, energy consumption of British Thermal Units (BTUs) per square foot is 320,000
           BTUs per square foot.


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Facilities Projects

In 2001      EPA will ensure that all new  and ongoing construction  projects are progressing and
            completed as scheduled.

In 2001      EPA will ensure personnel are relocated to new space as scheduled.

In 2000      EPA will ensure that all new  and ongoing construction  projects are progressing and
            completed as scheduled.

In 1999      EPA is continuing renovation at Ariel Rios North and has completed 90% buildout.  At
            present, renovation work continues and is on schedule. We met our goal hi completing 50%
            of Interstate Commerce Commission building. We moved 31 % of EPA personnel to the new
            consolidated complex.

In 1999      EPA exceeded our goal by completing 60% of RTF new construction project The facility
            will serve  as the  flagship  for  the  Agency's  Research  and Sound  Science efforts, it
            incorporates energy efficiency measures to save on utility requirements and sets the standard
            for laboratory construction.

In 1999      Construction was completed on time (February 1999) and within the established budget.
            EPA employees were subsequently relocated to the new laboratory facility and the building
            was officially dedicaated in April 1999.
Performance Measures:
Percentage of the new RTF building construction
completed.

Percentage of the Interstate Commerce Commission
(ICC) building construction completed.

Percentage of EPA personnel consolidated into
Headquarters complex.

Complete build out of Ariel Rios Building

Completion of lab construction at Ft Meade.

Percentage of complete build out of Customs and
Connecting Wing buildings.
FY 1999
Actuals
60


50


31

90

100
FY2000
Estimate
80
80
40
FY 2001
Request
100
100
52
                               85
Baseline:    In 2000, EPA percentage of EPA personnel relocated to New Headquarters Complex is 47%.
            In 2000, Research Triangle Park (RTP) construction baseline is 80% completion and the
            Interstate Commerce Commission baseline is 80% completion.

Energy Reduction Technology

In 2001     EPA will install a demonstration fuel cell at Ft. Meade Laboratory.

Performance Measures:                               FY 1999       FY2000        FY2001
Percent


Percent


Percent

Percent

Percent


Percent
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                                                 Actuals       Estimate      Request
>
       Percentage of fuel cell components in place.                                    10        Percent

       Percentage of structure completed.                                           100       Percent

       Baseline:    Baseline will be established in FY 2001.


       Verification and Validation of Performance Measures

       Performance Measure: Percentage of construction completed on each project cited

       Performance Database: Output measure - expressed as the completion of explicit tasks.  No
       database.

       Data Source: N/A

       QA/QC Procedures:  Verification of these measures will require the objective assessment of
       completed tasks by program staff and management

       Data Quality Review: N/A

I       Data Limitations: N/A

       New/Improved Data or Systems: N/A


       Performance Measure: Percentage of EPA Headquarters personnel relocated

       Performance Database:  Output measure — internal tracking. No database.

       Data Source:  N/A

       QA/QC Procedures:  Verification of these measures will require the objective assessment of
       completed tasks by program staff and management

       Data Quality Review: N/A

       Data Limitations:  N/A

       New/Improved Data or Systems:  N/A
                                               X-31

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Coordination with Other Agencies




None






Statutory Authorities




Federal Property and Administrations Service Act




Public Buildings Act




VA-HUD-Small Agencies Appropriations Act




Clean Water Act, Clean Air Act, 41 CFR and D.C. Recycling Act of 1998
                                       X-32

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                            Environmental Protection Agency

            FY 2001 Annual Performance Plan and Congressional Justification

                                  Effective Management


Objective #4: Provide Audit and Investigative Products and Services

       Provide audit and investigative products and services all of which can help EPA accomplish
its mission.
                                   Resource Summary
                                  (Dollars in Thousands)
                                         FY1999
                                         Enacted
           FY2000
           Enacted
           FY2001
           Request
        FY 2001 Heq. v.
         FY 2000 Ena.
Provide Audit and Investigative Products and
Services

   Environmental Program & Management

   Inspector General

   Hazardous Substance Superfund

       Total Workyears
$39,889.3
$43,532.5
$45,888.9
$2,356.4
$592.2
$39,297,1
$0.0
382,8
$152.8
543,379.7
$0.0
374.3
$.142,2
$34,094.4
$11,652.3
371.9
($10.6)
($9,285.3)
$11,652.3
(2.4)
                                           X-33

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                                    Key Programs
                                 (Dollars In Thousands)

Contract Audits
Assistance Agreement Audits
Program Audits
Financial Statement Audits
Program Integrity Investigations
Assistance Agreement Investigations
Contract and Procurement Investigations
Employee Integrity Investigations
Planning, Analysis, and Results
Program Evaluation - IG
Administrative Services
FY1999
Enacted
$4,950.6
$6,830.5
$10,264.4
$4,187.5
$911.5
$2,650.4
$2,913.0
$953.4
$0.0
$0,0
$0.0
FY2000
Enacted
$5,439.5
$7,349.3
$11,025.6
$4,334.3
$1,471.7
$2,762.8
$3,005.1
$991.8
$0.0
$1,636.3
$142.2
FY2001
Request
$5,358.0
$5,363.9
$12,791.6
$4,256.6
$1,486.3
$2,771.1
$2,986.3
$923.2
$1,615.8
$2,774.1
$142.2
FY 2001 Request

       The Office of Audit provides audit and advisory services that: (1) fulfill the mission of the
IG Act, (2) are highly responsive to the needs of customers, clients and stakeholders, (3) support the
attainment of Agency Strategic Goals,  and (4) help the Agency resolve its top management
challenges. Work focuses on "issue areas" based on relative risk, materiality, and importance to
EPA.

       Program Audits - Determine the extent to which the desired results or benefits envisioned
       by the Administration and Congress are being achieved, review the economy, efficiency and
       effectiveness of operations, determine the extent of compliance with applicable laws and
       regulations  and assist the Agency in implementing GPRA by selectively verifying and
       validating performance measures, data and results.

       Financial Statement Audits - Review the  Agency's financial systems and statements to
       ensure that the accounting information is accurate, reliable and useful, and complies with
                                         X-34

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       applicable laws and regulations. These audits assist EPA in improving its financial processes
       and controls to provide better information for decisions concerning environmental results.

       Assistance Agreement Audits - Audits of State Revolving Funds, Performance Partnership
       Grants, Interagency Agreements and Cooperative Agreements, which provide assistance to
       state, local and tribal governments, universities and nonprofit recipients accounting for about
       half of EPA's budget. Financial and performance aspects are audited, building on the Single
       Audit Act and focusing on resource-intensive,  high-risk programs.

       Contract Audits - Audits of Agency indirect cost proposals, preaward, interim and final
       contracts determine the eligibility, allocability, and reasonableness of costs claimed by
       contractors  and  assure that EPA pays only for what it requests  and receives. EPA has
       assumed audit cognizance of 10 major contractors and will continue monitoring for high-risk
       contractors. The Defense Contract Audit Agency provides contract audit services, on a
       reimbursable basis (paid by QIG funds), at the majority of EPA's contractors.

       Program Evaluations - Systematic measurement and analysis of environmental, economic
       and other external outcomes, benefits and results in relation to the application of resources,
       legislative and policy initiatives. Program evaluations build upon  traditional performance
       audits, using sophisticated analytical tools, methodologies and specialized skills applied with
       a broad perspective to guide public policy and investment decisions.

       The Office of Audit will continue audit emphasis on Agency assistance agreements in FY
2001. The OIG considers this apriority area because assistance agreement funding represents nearly
50 percent of EPA's budget and previous audits have  shown a continuing  pattern of problems. In
addition, a variety of audits focused on computer security will be conducted since previous audits
hi this area have uncovered a number of significant problems. The Office of Audit has substantially
completed the risk-based strategy of the Construction Grant Program. However, since the Agency
has declared close-out of the program a material weakness until FY 2002,  a commitment has been
made to audit or return for close-out, any grant within 12 months of a request, and assist the Agency
as needed. Investments in financial audits will be reduced since the Agency has received several
"clean opinions" on its financial statements. Reviews of Agency compliance with the Government
Performance and Results Act will continue through  selective verification and validation of the
process, measures,  and data quality. The Office of Audit will also expand its influence as positive
agents of change through additional assistance and consultation services to improve  Agency
capability and awareness in performance management and accountability. Further, the OIG will
Improve its performance and efficiency by implementing paperless auditing and other technology,
and by providing additional professional support to the Office of Investigations to detect fraud
involving complex financial and procurement-related  issues.

       Full program  evaluation services will be provided and will allow the OIG to  analyze
environmental outcomes more effectively by applying (1) new perspectives and methodological
                                         X-35

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approaches from social sciences and public policy fields; (2) more specialized and sophisticated
analytical tools; and (3) added environmental expertise.

       The Office of Audit goal is to increase its influence on actions leading to the achievement
of the  environmental mission by developing partnerships with other Federal, state and private
stakeholders, and by alignment and accountability of its activities to the needs and expectations of
Agency management, the Congress and the taxpayers.  The Agency cannot perform at its highest
potential without consistent application of controls and business practices to prevent loss and
maximize results from available resources.  The OIG goal will help EPA leverage its resources and
make informed decisions for the greatest environmental return.

       The Office of Investigations  investigates alleged fraud, waste, abuse, and other illegal
activities by EPA employees, contractors, and grantees. A variety of investigations result in referrals
for criminal prosecution  and civil action,  indictments,  convictions, fines, restitutions, civil
recoveries, suspensions, debarments, and other administrative actions.   They  also  result  in
identification of systemic vulnerabilities, improvements in programs and operations, savings and
economic benefits. Fraud-awareness briefings are held to raise consciousness about integrity issues
within the Agency.
       Program Integrity Investigations - Investigations of activities that could  undermine the
       integrity  of Agency programs concerning  safety and public health, and erode public
       confidence in the Agency. These cases are initiated in response to allegations or may be self-
       initiated in high-risk areas where there is  reasonable suspicion of fraud.
       Assistance Agreement Investigations - Investigations of criminal activities related to
       Agency  grants, State  Revolving Funds,  Interagency  Agreements  and  Cooperative
       Agreements, that provide assistance to state, local and tribal governments, universities and
       nonprofit recipients. Collectively these programs account for about half of EPA's budget.

       Contract and Procurement Investigations - Investigations involving acquisition
       management, contracts and procurement practices.  These investigations specifically focus
       on cost mischarging, defective pricing, and collusion on EPA contracts. The decentralized
       nature of EPA contracting, the complexity of Agency contracting, and the lack of a central
       vendor and subcontractor database increases the Agency's vulnerability to fraud.

       Employee  Integrity Investigations - Investigations involving allegations against EPA
       employees  that could  threaten the  credibility  of  the  Agency. Employee integrity
       investigations are conducted to maintain the integrity of EPA personnel.

       The Office of Investigations FY 2001 activities will remain essentially the same as FY 2000
since no significant changes in strategic direction are planned.  Emphasis will continue on the
initiative to uncover criminal activity in the awarding and delivery of EPA assistance agreements and
contracts. In addition, the Office of Investigations will perform criminal investigations of intrusive


                                          X-36

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activities affecting EPA computer systems, and will participate with other law enforcement agencies
in the growing effort to protect government computer systems.  Fraud and abuse remain a threat to
Agency programs and can substantially subvert EPA's mission. Investigations are vital in reducing
risk by detecting and deterring fraud, abuse, and other improprieties, and by promoting cost-effective
programs, ensuring the integrity of contractors and employees.  Focus will continue on these
activities and will increase OIG effectiveness in areas yielding the greatest results.

       The Immediate Office of the Inspector General provides overall  direction, policy, and
management of OIG operations. The Counsel to the Inspector General provides legal services in
conjunction with audits, investigations, and other OIG activities, and also responds to Freedom of
Information Act requests.

       The Office of Planning, Analysis and Results (PAR) oversees the  development of strategic
plans, annual performance plans and budgets, and performance measures. Strategic plans align OIG
products and services to current Agency goals and priorities based upon emerging issues, legislative
initiatives, needs of various customers,  clients and  stakeholders and multiple dynamic external
factors. PAR prepares clear, accurate, timely, and independent reports  to  the Administrator,
Congress, and the  public summarizing the OIG's work results and demonstrating value to the
Agency and taxpayers.  PAR implements  and maintains a process for identifying, collecting,
analyzing, and reporting performance and resource information as required by GPRA.  PAR also
performs management assessment reviews to ensure that the high quality of OIG work is maintained,
and evaluates existing/proposed legislation and regulations affecting EPA.

       The Program  Support Staff (PRSS) provides  human resource support  and develops
applications of computer technology for fast, economical information that increases operational
capacity and customer responsiveness. Technology is one of the OIG's primary means to make
administrative  reforms and apply a greater percentage of staff to direct mission objectives. PRSS
also helps the  Agency prevent and reduce the risk  of loss and impropriety through timely and
responsive reviews of personnel backgrounds and employment suitability.

       Program Management - Activities of the Immediate Office of the Inspector General which
       provide leadership, overall direction, policy, and management of OIG operations. These
       activities also include independent legal services provided by the OIG Counsel.

       Planning, Analysis, and Results - Activities to develop strategic and annual performance
       plans, budgets and accountability reports in compliance with the Inspector General Act, as
       amended, and the Government Performance and Results Act that  clearly link all resources
       to progress in achieving organizational objectives and results. These activities provide the
       catalyst to effective controllership, decision making and operational changes for the best
       application of resources.  These activities also identify customer,  client and stakeholder
       needs, and opportunities for responsive collaboration with Federal,  state, local and private
       entities. In addition, they also include an internal quality control system.
                                         X-37

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       Program Support - Activities to provide a folly-staffed, highly-qualified, and culturally-
       diverse workforce supported by appropriate and efficient administrative services to maximize
       application of OIG staff time on direct mission work. These activities also include reviews
       of background investigations of current and prospective EPA employees and contractors to
       determine if suitability and security requirements are met to reduce risk and protect the
       integrity of the EPA programs and operations.

       Information Resources Management - Activities for the acquisition and maintenance of
       information technology hardware and software, and the development, implementation, and
       maintenance of knowledge management applications. These activities result in better,
       cheaper, and faster communications and products, thereby improving OIG efficiency and its
       value to the Agency.

       Working Capital Fund - Activities funded by the OIG and managed by the Agency which
       provide  computing (desktop connectivity), communications (E-mail,  voice mail, long-
       distance telephone service) and postage services to the OIG staff nationwide. These are fee-
       for-service activities designed to  promote economy and efficiency.

       The Immediate Office of the Inspector General will continue its emphasis on creating a high
performance organization in FY 2001 through an ongoing major training initiative. PAR activities
will remain essentially the same as FY 2000 except it is anticipated that foil program implementation
will occur following the initial start up which only had partial staffing in the previous year. PRSS
activities will be similar to F Y 2000 except for a possible contracting out of personnel services
currently provided by the Agency. Information Resources Management activities (part of PRSS) will
be similar to FY 2000 with emphasis on refining the Inspector General Operation and Reporting
system. PAR and PRSS  activities are necessary to ensure that the OIG obtains the greatest return on
its investment for the Agency by contributing to the performance of audits and investigations. They
contribute substantially  to the planning, utilization and effectiveness of OIG resources.
 Linkage of OIG Products and Services to Improved EPA Business Practices and
 Impacts ..'•'.       ;       •  ,     .-•;-.    :  :   :  ; •:;'.'".-•'         '   :   '•'.-'   :
 Questioned Costs/Savings
 Recommendations/Opinions
 Advice/Analysis/Projects
 Indictment/Convictions
 Civil/Administrative
 Fines/Restitutions
 Reports/Briefings
Legislative Change
R egulatory Change
  Policy Change
  Practice Change
  Enforcement Actions
  Industry, Grantee or State MOE
  $s Recovered, Offset or Avoide
oring
 Improved Efficiencies
(improved Effectiveness
  aproved Controls
(Increased Compliance
(improved Reporting
 Risk Reduction
  Improved Environment
                                         X-38

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Relationship Between Audit Issue Areas and Coverage of Agency Strategic Goals
Audit Issue Areas™*
Planned: 2000-2001
EPA Strategic Goals
iGJeanASr '. „ I ''!' [
' c!ean,$ SafefWatei^ ' > :,
*&*, i;' ; :;,';•?
Rwettliig Pollution & ^
'Ecosystems ;; ,',.',-•' J.
d
4^«4^B^a9. ':
1
- '-pf > js^ ^ •it','*4 i > i '•
'Sotnia S
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Annual Performance Goals and Performance Measures

Audit and Advisory Services

In 2001      Provides independent audits, evaluations, and advisory services, responsive to customers and
            clients, leading to improved economy, efficiency and effectiveness in Agency business
            practices and attainment of its environment goals.

In 2000     In FY 2000, the Office of Audit will provide timely, independent auditing & consulting
            services responsive to the needs of our customers and stakeholders by identifying means and
            opportunties for increased economy, efficiency, and effectiveness in achieving environment
            results.

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.

In 1999     The Office of Audit provided timely, independent  auditing  & consulting  services by
            completing & initiating more audit assignments, reducing the average time, & dedicating
            more resources to consulting services.
Performance Measures:
Potential monetary value of recommendations,
 questioned costs, savings and recoveries.

Examples of IG recommendations/advice or actions
 taken to improve the economy, efficiency, and
effectiveness of business practices and environmental
programs.

Construction Grants Closeout Audits

Overall customer and stakeholder satisfaction with audit
products and services (timeliness, relevancy, usefulness
and responsive.
FY 1999
Actuals
124.9
FY 2000
Estimate
64.0
FY2001
Request
40
60

24
63
68
                75
                80
Baseline:    In 2000, the Office of Audit will measure potential monetary value of recommendations,
            questioned costs, savings and recoveries at a baseline of $64.0 million ( the amount of
            questioned costs will decrease substantially due to the reduction of construction grants audits)
            ; IG recommendations made  and actions taken to  improve the economy, efficiency, and
            effectiveness of operations and environmental programs will be 63 recommendations/actions,
            and the percentage of the overall customer and stakeholder satisfaction with audit products
            and services (timeliness, relevancy, usefulness, and  responsiveness) will be baselined at
            75%.
Million
Examples

Audits



Percent
                                                 X-40

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Fraud Detection and Deterrence

In 2001     Increase effectiveness in detecting and detening fraud and other improprieties that undermine
           the integrity of Agency programs and resources.

In 2000     In FY 2000, the Office of Investigations will increase its effectiveness in detecting &
           deterring fraud & other improprieties by increasing the number of assistance agreements &
           contract cases, improving the % of cases refered for action and reducing the average time
           for case completion.

In 1999     Office of Investigations increased its effectiveness in detecting & deterring fraud & other
           improprieties by increasing the number of assistance agreements & contract cases, improving
           the % of cases refered for action, reducing average time of case completion, & more fraud
           awareness briefings.
Performance Measures:
Monetary value of fines, judgements, settlements,
restitutions, and savings.

Judicial, administrative, and other actions taken to
enforce law, reduce or avoid risk.

Percentage of cases completed resulting in referrals.

Percentage of cases completed or referred within one
year.
FY 1999
Actuals
  So
 .5
73
FY 2000
Estimate
4.2
53
               37.6
               52
FY2001
Request
4.3
54
               37.6
               53
Million
Actions
           % Of Cases
           % Of Cases
Baseline:   In 2000, the Office of Investigations will use $ 4.24 million as their performance baseline for
           monetary value of fines, judgements,  settlements, restitutions, and savings, for judicial,
           administrative, and other actions taken to enforce law, reduce or avoid risk, 53 judicial and
           administrative actions will be the performance baseline, 68.9 assistance agreements and
           contracts opened will be the baseline, percentage of cases completed resulting in referrals
           will have a baseline of 37,1% and percentage of cases completed or referred within one year
           initiation will be 52%.
Verification and Validation of Performance Measures

Performance Measure:  Potential monetary value of recommendations, questioned costs,
savings and recoveries

Performance Database:  Inspector General Operations and Reporting System (IGOR)

Data Source: OIG Staff

QA/QC Procedures: Management Assessment Review (MAR); Peer Review (PR)

Data Quality Review: None
                                              X-41

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Data Limitations: Incomplete/missing data

New/Improved Data or Systems: Modify as necessary


Performance Measure: Examples of IG recommendations/advice or actions taken to improve
economy, efficiency, and effectiveness of business practices and environmental programs

Performance Database: Inspector General Operations and Reporting System (IGOR)

Data Source: OIG Staff

QA/QC Procedures: Management Assessment Review (MAR); Peer Review (PR)

Data Quality Review:  None

Data Limitations: Incomplete/missing data

New/Improved Data or Systems: Modify as necessary


Performance Measure: Overall customer and stakeholder satisfaction with audit products and
services

Performance Database: Internal tracking ~ no database

Data Source: N/A

QA/QC Procedures: N/A

Data Quality Review:  N/A

Data Limitations: N/A

New/Improved Data or Systems: N/A


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 seeks
to coordinate and improve the way IGs conduct audits and investigations, and completes projects of
government-wide interest. The OIG participates with various inter-governmental audit forums,

                                       X-42

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professional associations, and other cross-governmental forums to exchange information, share best
practices and directly collaborate efforts.
Vertical and Horizontal Integration

       The EPA OIG is currently
working to form partnerships with,
and  coordinate resources  of,  other
Federal agencies  (horizontal),  state,
and private institutions (vertical) for
combined  expanded leverage and to
influence  resolution of common or
related environmental problems.
                               NAL ASSOC.
FE1
                                    HORIZONTAL & VERTICAL INTEGRATION OF
                                                    RESOURCES
 Customers,; Clients and Stakeholders;
    Congress
    The EPA Administrator, Agency Management, and Staff
    The American Taxpayers
    The Office of Management and Budget
    State and Local Governments
    Other Federal Agencies
    The Law Enforcement Community
    EPA Contractors and Assistance Agreement Recipients
    The Media and Public Interest Groups
                                         X-43

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Statutory Authorities




Inspector General Act of 1978, as amended




Chief Financial Officer Act




Government Management Reform Act




Government Performance and Results Act




Superfund Amendments and Reauthorization Act




Federal Insecticide, Fungicide, and Rodenticide Act
                                       X-44

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Special Analysis

-------
Environmental Protection Agency
2001 Annual Performance Plan and Congressional Justification
Table of Contents
Special Analysis
       EPA's Government-wide APGs for FY 2001	  SA-1
       Annual Plan	,.,	  SA^l
       Major Management Issues	,	,	,	SA-5
       Key Programs by Appropriation/Goal	 SA-17
       EPA's User Fee Program .,	,	 SA-30
       Working Capital Fund		SA-33
       The Customer Service Program and Its Goals	,	 SA-34
       Costs and Benefits for Economically  Significant Rules in FY 2000 or FY 2001  	SA-37
       State and Tribal Assistance Grants: Appropriation Components ,	 SA-46
       State and Tribal Assistance Grants: Categorical Grants	SA-47
       State and Tribal Assistance Grants: Statutory Authorities	SA-48
       AppropriationNObject Class	SA-55
       Cost Allocation	 SA-60

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                          Government-Wide Performance Plan
                           Pollution Control and Abatement

       The Federal Government helps achieve the Nation's pollution control goals by: (1) taking
direct action; (2) funding actions by State, local, and Tribal governments; and (3) implementing an
environmental regulatory system. The Environmental Protection Agency's (EPA) $7.3 billion in
discretionary funds and the Coast Guard's $140 million Oil Spill Liability Trust Fund (which funds
oil spill prevention and cleanup) finance the activities in this submnction. EPA is an NPR High
Impact Agency whose discretionary funds have three major components—the operating program,
Superfund, and water infrastructure financing.

       EPA's $3.9 billion operating program provides the Federal funding to implement most
Federal pollution control laws, including the Clean Air, Clean Water, Resource Conservation and
Recovery, Safe Drinking Water, and Toxic Substances Control Acts. EPA protects human health
and the environment by developing national pollution control standards, largely enforced by the
States under EPA-delegated authority. For example, under the Clean Air Act, EPA works to make
the air clean and healthy to breathe by setting standards for ambient air quality, toxic air pollutant
emissions, new pollution sources, and mobile sources.

•      In 2001, EPA will certify that 5 of the estimated 38 remaining nonattainment areas have
       achieved the one-hour National Ambient Air Quality Standard for ozone.

•      In 2001, air toxic emissions nationwide from stationary and mobile sources combined will
       be reduced by five percent from 2000 (for a cumulative reduction of 35 percent from the
       1993 level of 4.3 million tons).

       Under the Clean Water Act, EPA works to conserve and enhance the ecological health of the
Nation's waters, through regulation of point source discharges and through multi-agency initiatives
such as the Administration's Clean Water Action Plan.

•      In 2001, water quality will improve on a watershed basis such that 550 of the Nation's 2,150
       watersheds will have greater than 80 percent of assessed waters meeting all water quality
       standard, up from 500 watersheds in 1998.

       Under the Federal Insecticide, Fungicide, and Rodenticide Act and the Federal Food, Drug,
and Cosmetic Act, EPA regulates pesticide use, grants product registrations, and sets tolerances
(standards for pesticide residue on food) to reduce risk and promote safer means of pest control.
EPA also seeks to reduce environmental risks where Americans reside, work, and enjoy life, through
pollution prevention and risk management strategies.

•      In 2001, EPA will reassess an additional 1,200 of the 9,721 existing pesticide tolerances to
       ensure that they meet the statutory standard  of "reasonable certainty of no harm" (for a
       cumulative 60 percent), including an additional 208 of the 848 tolerances having the greatest

                                         SA-1

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       potential impact on dietary risks to children (for a cumulative 66 percent).

•      In 2001, the quantity of Toxic Release Inventory pollutants released, disposed of, treated, or
       combusted for energy recovery (normalized for changes in industrial production) will be
       reduced by 200 million pounds, or two percent, from 2000 reporting levels.

•      In 2001, EPA will initiate safety reviews on chemicals already in commerce by obtaining
       data on an additional 10 percent of the 2800 high production volume chemicals on the master
       testing list, as part of the implementation of a comprehensive strategy for screening,, testing,
       classifying, and managing the risks posed by commercial chemicals.

       Under the Resource Conservation and Recovery Act (RCRA), EPA and authorized States
prevent dangerous releases to the environment of hazardous, industrial nonhazardous, and municipal
solid wastes by requiring proper facility management and cleanup of environmental contamination
at those sites.

•      In 2001, 106 more hazardous waste management facilities will have approved controls in
       place to prevent dangerous releases to air, soil, and groundwater, for a total of 70 percent of
       2900 facilities.

       EPA's underground storage tank (UST) program seeks to prevent, detect, and correct leaks
from USTs containing petroleum and hazardous  substances. Regulations issued in 1988 required
that substandard USTs (lacking spill, overfill and/or corrosion protection) be upgraded, replaced or
closed by December 22,1998.

*      In2001,93 percent (an estimated 651,000) of active USTs will bein compliance withthese
       requirements, which improves upon the 65 percent (approximately 553,800) of then-active
       USTs in compliance as of the December  22,19998 deadline. Over the past decade, more
       than 1.4 million substandard USTs have been permanently closed.

       In October 1997, the President announced immediate actions to begin addressing the problem
of global climate change, and included the Climate Change Technology Initiative (CCTT) in the 1999
Budget The 2001 Budget provides $227 million  for the third year of EPA's portion of CCTI, much
of which  focuses on  the deployment of underutilized but  existing technologies that reduce
greenhouse gas emissions. The partnerships EPA has built with business and other organizations
since the early 1990s will continue to be the foundation for reducing greenhouse gas emissions in
2001 and beyond.

•      In 2001, greenhouse gas emissions will be reduced from proj ected levels by approximately
       66 million metric tons of carbon  equivalent per year through EPA partnerships with
       businesses, schools, State and local governments, and other organizations. This reduction
       level will be an increase of eight million metric tons over 2000 reduction levels.
                                         SA-2

-------
       In 2001, EPA will develop the infrastructure to implement the Clean Air Partnership Fund,
which will demonstrate smart multi-pollutant approaches that reduce greenhouse gases, air toxics,
soot, and smog.

       The $1.45 billion Superfund program pays to clean up hazardous spills and abandoned
hazardous waste sites, and to compel responsible parties to clean up.  The Coast Guard implements
a smaller but similar program to clean up oil spills. Superfund also supports EPA's Brownfields
program, designed to assess, clean up, and re-use former industrial sites.

       In 2001, EPA will complete 75 Superfund cleanups, continuing on a path to reach 900
completed cleanups by the end of 2002; it completed 85 cleanups in 1999.

       In 2001, EPA Brownfields funding will result in 200 site assessments (fora cumulative total
of 2,100), 500 jobs generated (for a cumulative total of 5,400), and the leveraging of $100 million
in cleanup and redevelopment funds (for a cumulative total of $1.8 billion).

       In 2001, the Coast Guard will reduce the rate of oil spilled into the Nation's waters to 4.62
gallons per million gallons shipped from a statistical baseline of 5.25 gallons in 1998.

       Federal water infrastructure funds provide capitalization grants to  State revolving funds,
which  make low-interest loans  to help municipalities pay for wastewater and drinking water
treatment systems required by Federal law. The $ 1.625 billion in the 2001 Budget is consistent with
the Administration's plans  to capitalize these funds to  the point where the Clean Water State
Revolving Funds (CWSRF) and the Drinking Water State Revolving Funds (DWSRF) provide a
total of $2.5 billion in average annual assistance. The $74 billion in Federal assistance since passage
of the 1972 Clean Water Act has dramatically increased the portion  of Americans enjoying better
quality water;  nearly 180 million people now receive  the benefits  of secondary treatment of
wastewater. Ensuring that community water systems meet health-based drinking water standards
is supported by both me DWSRF and operating program resources.

       In 2001, 500 CWSRF projects will initiate operations, including 300 projects providing
secondary treatment, advanced treatment, CSO correction (treatment), and/or storm water treatment.
A cumulative total of 6,200 projects will have initiated operations since inception of the program.

       In 2001, 91 percent of the population served by community water systems will receive
drinking water meeting all health-based standards in effect as of 1994, up from 83 percent in 1994.
                                         SA-3

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                         Annual Performance Plan Components
       The Annual Plan submission to Congress contains the following elements of the Agency's
Annual Plan and Congressional Justification:

       Goals
             Goal Statement
             Background and Context
             Means and Strategy
             External Factors
             Goal Resources

       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

       Appendix
             Customer Service Program
             Costs and Benefits of Economically Significant Rules
             Major Management Issues
             Use of Non-Federal Parties in Preparing this Annual Plan
             Relationship Between the Annual Plan and the Strategic Plan
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                              Major Management Issues

Introduction

       EPA's senior leadership take seriously the major management challenges facing the Agency
and work diligently to address the concerns identified through the Agency' s internal reviews, by the
General Accounting Office (GAO), the Office of Management and Budget (OMB), and  EPA's
Office of Inspector General (OIG). The Agency uses a variety of tools to focus resources and senior
managers' time on resolution of these issues.

       Under the umbrella of the Federal Managers* Financial Integrity  Act (FMFIA), the
Administrator and the Senior Leadership Council (SLC) meet during the year to discuss progress in
addressing systemic management weaknesses  and concerns about possible emerging  issues.
Corrective action plans are implemented and tracked for identified weaknesses.  In addition, the
Agency has corrective action plans in place to address issues identified in OIG audits and GAO
reviews. In a December 3,1999 letter to Congress, EPA's IG eliminated three previously reported
key management challenges (Agency's Relationship with Contractors, Use of Inefficient Contract
Types, and Quality Assurance Plans) based on the significant progress the Agency made  in
correcting these issues.

       Another previously reported key management challenge that was successfully addressed is
the Year 2000 Compliance.  All 50 EPA mission critical systems were assessed, renovated, and
certified through an independent certification program. In addition, the Agency's major computing
platforms (mainframe, client/server, supercomputer) and wide-area telecommunications networks
were 100 percent compliant, as were the 1,428 non-mission critical systems and 28 data exchanges,
which are a combination of mission critical and non-mission critical systems.

       Information is provided below on efforts underway to address EPA's major management
issues.

Accountability

       EPA's OIG feels that improvements should be made in how the Agency holds Regional
Offices accountable for controlling and accounting for allocated resources and ensuring they are used
for the designated purposes. OIG recommendations include clearly defined goals, performance
measures and areas of responsibility. The Agency' s implementation of the Government Performance
and Results Act (GPRA) is helping to address these issues. In FY 1999, EPA revised its  budget
structure to identify funding priorities and allocate resources consistent with the goal-objective
architecture.  Managerial cost-accounting further strengthens the Agency's ability to monitor and
manage expenditures against the goal structure.

Performance Partnership Grants - A Performance Partnership Grant (PPG) is a multi-program grant
awarded to States or Tribes from funds allocated and otherwise available for categorical grant
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programs. PPGs provide States and Tribes with greater flexibility in how they use Federal grant
funds.  Recent OIG audits raised concerns about the extent to which the Regions could be held
accountable for work performed by the States and Tribes.  The OIG also found that Regional
officials have difficulty determining how to provide flexibility and ensure accountability for
performance and environmental results. In FY 1999, the Agency published a Notice of Proposed
Rule Making in the Federal Register revising 40 CFR Part 3 5, Subpart A to include the PPG program
for States and to add a new Tribal-specific regulation (40 CFR Part 35, Subpart B).

       The Agency will publish the final rules in FY 2000. In addition, the Office of Grants and
Debannent will examine existing Performance Partnership Agreements and grants during regularly
scheduled oversight reviews.

Environmental Information

Reinventing Environmental Information {RED - In July 1997, EPA's Administrator directed the
Agency to accelerate efforts to reinvent environmental information, in cooperation with the States,
by adopting formal data standards, providing  universal access to  electronic reporting, and
reengineering the Agency's national data systems. EPA committed to the following:

   •   Data Standards—In. F Y1999, EPA issued interim standards for six key data types and will
       incorporate these standards in all  EPA national systems by the end of FY 2003. Data
       standards establish a common language among users of environmental information.

   *   Electronic Reporting—All parties reporting to EPA shall have voluntary access to electronic
       reporting by the end of FY 2003.

   «   State Partnership—REI must be implemented in partnerships with States if it is to succeed.
       The One Stop program and the State/EPA Information Management Work Group provide
       opportunities for EPA and States to set goals for improving and sharing information and
       agree on policies and programs to achieve these goals.

   •   Systems Reengineering—EPA national data systems shall incorporate all data standards and
       provide access to electronic reporting by the end of FY 2003.

FY 1999 was a pivotal year for REI.  Efforts hi FY 1998 focused  on developing pieces of the
infrastructure necessary to reinvent information management at EPA.  After completion of the
infrastructure, the focus of REI shifted toward implementation in the EPA systems and States. The
FY 1999 accomplishments and FY 2000 commitments are described below:

   •   Data Standards—The data standards program is  on schedule to  finalize standards and
       business rules in Calendar  Year 2000, and begin implementation in national and State
       systems. Two final standards and business rules have been finalized, Date  and Standard
       Industrial Code/North American Industrial Classification System (SIC/NAICS). Four
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       interim standards have been approved (Facility Identification, Latitude/Longitude, Biological
       Taxonomy, and Chemical ID).

   •   Electronic Reporting—The electronic reporting (ER) group completed Electronic Data
       Interchange (EDI) standards development in F Y1999 and is moving toward implementation
       by resolving core legal and policy issues. In FY 2000, the ER group is also beginning pilot
       tests of Internet and digital signature technologies and will work through specification and
       pilot tests of Agency electronic reporting infrastructure components.

   •   State Partnership—One Stop continues to award grants to States, and is taking a larger role
       in coordinating State involvement in the development and implementation of various REI
       commitments. Through FY 1998, EPA had awarded a total of 21 One Stop grants to
       participating States; four new One Stop grants were awarded hi  FY 1999 (California,
       Michigan, Virginia and Nebraska). EPA's goal is to invite all States to join One Stop by FY
       2003.  The focus in FY 2000 is to provide technical assistance to States and conduct a
       number of pilot projects in selected One Stop States to "test-implement" aspects of the REI
       program.  Also, in  early FY 2000, EPA and the States created the Environmental Data
       Standards Council,  a group of Agency and State information managers, to promote more
       rapid work on standards in a cooperative fashion.

   •   Systems Reengineering—In FY 2000, systems reengineering coordination efforts will shift
       toward beginning implementation of data standards; providing a forum for systems managers
       to discuss key issues, such as electronic reporting; and working closely with States to
       coordinate reengineering/modernization activities.

EPA's New Information Office - In 1998, EPA's Administrator made a decision to fundamentally
realign information management and policy at EPA by establishing a new information office
dedicated solely to information management.  The Office of Environmental Information (OEI)
became operational early  in  FY 2000  with  the challenge to  integrate information policy,
management,  and technology.

OEI will play a significant role to advance the creation, management, and use of data as a strategic
resource. OEI will support the Agency's mission of protecting public health and the environment
by integrating quality  environmental information to make it useful  for  informing decisions,
improving information management, documenting performance, and measuring success.  OEI will
strengthen information partnerships by increasing their extent and effectiveness, including leveraging
information technology investments, to meet the needs of EPA's varied information managers and
customers. This starts with States and Tribes, and extends to other Federal, local, and international
agencies, and private organizations.  EPA will  realign its information technology investments to
meet the greatest needs and opportunities  and maximize return on investment, adjusted for risk.
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Information Systems Security

       Recent OIG audits found that Security Plans for many of the Agency's major applications
and general support systems were deficient or non-existent. Issues identified included unauthorized
access to confidential business information, enforcement-sensitive, Privacy Act, or internal-sensitive
information.  In addition,  a recent GAO review identified a number of vulnerabilities on the
Agency's network and mainframe computer.

       EPA declared Information Systems Security as a material weakness hi its FY 1997 Integrity
Act Report to the President and Congress. The Agency revised its Information Security Program
Manual to provide guidance to Program and Regional Offices and developed security plans for the
Agency's telecommunications network and National Computer Center computer platforms. EPA's
Chief Information Officer  is now conducting reviews of security plans to ensure the  Agency's
information resources and environmental data are secure and existing risks and vulnerabilities are
addressed.  In addition, OEI established a technical security staff to address new vulnerabilities as
a result of Internet access.

Quality of Laboratory Data

       The OIG conducted a review of contract laboratory work at the request of an EPA Regional
Administrator and found that some scientific analyses generated by EPA and contract laboratories
are of questionable quality and should not be used  to support environmental decisions. Further
review by the Agency identified a number of practices that may be effective in deterring laboratory
misconduct or  in detecting improper procedures  in laboratory operations or documentation.
Corrective actions underway in the Region include establishing new quality policies and providing
training for staff.  OEI and the Quality and Information Council will review the issues related to
laboratory data quality including the issues raised hi the OIG report.

Agency Process for Preparing Financial Statements

       EPA received unqualified audit opinions on its FY 1998 Audited Financial Statements.
However, the preparation of the Agency's financial statements was substantially more challenging
than in prior years, and EPA missed the statutory submission date by several  months.  EPA
addressed this issue by improving planning and coordination in cooperation with EPA's OIG,
redirecting resources and strengthening quality control. EPA is on schedule to submit its FY 1999
Audited Financial Statements by the March 1,2000  due date.

Oversight of Assistance Agreements

        As a result of Congressional hearings and findings in OIG audits, the Agency identified
grants close-out and oversight of assistance agreements as a material weakness in its FY  1996
Integrity Act Report. The Agency has made significant progress in carrying out corrective action
plans, eliminating 99% of its original grant close-out backlog by December 31,1999. To prevent
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future backlogs, the Agency requires every Grants Management Office (GMO) to develop and
submit an annual close-out strategy which identifies and addresses the obstacles to timely grants
close-outs.

       During FY 2000, the Agency will continue to conduct Management Oversight Reviews of
the GMOs;  expand the grantee compliance assistance reviews; conduct five one-day refresher
training courses and six basic Assistance Project Officer certification courses; and continue to look
for ways to strengthen grants management.  The Agency expects to complete corrective actions in
FY 2000.

Construction Grants Close-Qut

       EPA designated  construction grants close-out as a material weakness in FY 1996 to focus
attention on closing out the construction grants, involving billions of dollars, that were awarded in
the last 20 years. Corrective actions were implemented that allowed program managers to close out
more projects than before without requesting an audit and expedited scheduling and completion of
necessary audits.  The Agency substantially reduced the amount of grants waiting to be closed from
the 1990 level of 5,860 projects totaling $34 billion to the 1999 level of 123 projects totaling $2.3
billion. EPA expects to  close out the remainder of projects by the end of FY 2002.

Independent Government Cost Estimates for Superfund Contracts

     GAO believes that EPA needs to maintain high-level Agency oversight of Independent
Government Cost Estimates (IGCEs) for Superfund contracts. As part of its high risk series, GAO
concluded that the Agency relied more on contractors' cost estimates than Agency IGCEs when
estimating costs for cost  reimbursable work.  GAO commends EPA's efforts to correct past contract
management problems,  but believes the Agency needs more tune to determine if these actions
corrected the problems.

       In response to GAO's concerns, the  Agency designated IGCEs for Superfund contracts an
Agency- level weakness in its FY 1998 Integrity Act process and implemented a corrective action
strategy.  The Agency established a  national workgroup to explore ways to improve IGCEs. The
workgroup recommended partnering with the US Army Corps of Engineers (USAGE) to document
problems the Regions were having with IGCEs; determine what procedures and tools needed to be
developed, updated, and/or refined; determine training requirements; share best practices and lessons
learned; evaluate Regional and national databases used to provide historical data that could be used
in the preparation of IGCEs; and make recommendations for improvement.

       The USAGE completed its reviews and provided the Agency with its  final report in
December 1999. Activities now are centered on developing/updating the Headquarters guidance on
IGCEs, and beginning work on implementing the other USAGE recommendations. Superfund
Headquarter's staff, along with estimators from USAGE and EPA Regional offices, developed a
four-hour  training  session on cost estimating for  EPA remedial  project managers,  who  are
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responsible for preparing the cost estimates.  The training, specific to Superfund projects, was
conducted at the national meeting of remedial project managers held in Chicago in August 1999.

Controlling RAC Program Management Costs

      In its, April 1999 report, "Progress Made by EPA and Other Federal Agencies to Resolve
Program Management Issues, " GAO reported that the program support cost rates for a majority of
the new Response Action Contracts (RACs) were high.  The Agency had already identified
"Controlling Response  Action Contractor Program Management Costs" as an Agency-level
weakness in the F Y
1998 Integrity Act process. The Agency has made substantial progress in implementing a corrective
action strategy. Specifically, the Agency:

      •      reduced the number of contracts from 45 Alternative Remedial Contracting Strategy
             (ARCS) contracts to 19 RACs;

      •      reduced the base level of effort hours in several of the more recently awarded RACs
             in Regions 2,3,  9, and 10;

      •      reduced the number of new RAC awards in Regions 4,9 and 10 to one per Region,
             instead of two per Region; and

      •      transitioned work efficiently and expeditiously from expiring ARCS to new RACs.
      In addition, EPA is monitoring national RACs' capacity utilization and program support costs
continuously and developing quarterly reports for senior management review. These reports have
documented a positive trend with the national program support percentage reduced from 14.6%
through September 1998 to 10.9% through September 1999. Finally, the Agency issued a national
policy that outlines guidelines for the Agency to assess RACs' options and further support efforts
to control RACs program management costs. These guidelines focus on options to extend RACs'
period of performance based on sound programmatic and business considerations.

Superfund Program Management

      GAO, in its January 1999 report, "Major Management Challenges and Program Risks, "
found that EPA does not use relative risk as a major criterion when deciding which eligible sites to
include in the Superfund program.

      The Superfund program's priority is to address the Nation's worst hazardous waste sites.
EPA uses the Hazard Ranking System (MRS) to evaluate the potential relative risks to public health
and the environment. The type of information used in the evaluation include (1) the likelihood that
a site has released, or has the potential to release, contaminants into the environment; (2) the


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characteristics of the substances (toxicity and quantity); and (3) the people or sensitive environments
affected by the release. The resulting ranking determines which sites are considered for placement
on the National Priorities List (NPL).  The NPL identifies the priority and most serious hazardous
substance  sites  nationwide.  EPA also  considers other risk and management considerations,
including,  for example, whether States are taking action at the sites, to support placement of a site
on the NPL.  After a site is placed on the NPL, EPA employs a National Risk-Based Priority Panel
to set national funding priorities.  The Panel evaluates Superfund cleanup projects against such
factors as human and ecological risks, and stability and contaminate characteristics.

Superfund Five-Year Reviews

     The Superfund statute requires that remedial actions, where hazardous substances, pollutants,
or contaminants remain on-site, be reviewed every five years to assure that human health and the
environment continue to be protected. Five-year reviews are also conducted as a matter of policy
when a remedial action will take longer than five years to reach clean-up levels.  In March 1995,
EPA's OIG reported that a substantial number of five-year reviews had  not been performed and
recommended several options for improving the program and reducing the backlog. In a follow-up
audit report in 1999, the OIG found that (1) the backlog of overdue reviews significantly increased
since the time of the prior audit, (2) some review reports needed to be more informative to provide
a well supported  status on the protectiveness of the remedy, and (3) the Agency  needs to
communicate the results of the reviews and the protectiveness status of the remedy more effectively.
EPA identified the backlog of five-year reviews as a F Y ,1999 management control weakness and
developed  a corrective action plan for implementation in F Y 2000.

The Great Lakes Program

      The U.S. Canada Great Lakes Water Quality Agreement calls for lakewide Management
Plans (LaMPs) and Remedial Action Plans (RAPs) to support the restoration and maintenance of the
chemical, physical, and biological integrity of the Great Lakes. The Great Lakes Regional Water
programs and States have principal responsibility for development and implementation of the LaMPs
and RAPs, respectively. Under the Clean Water Act, EPA's Great Lakes National Program Office
coordinates with Federal, State, and Tribal governments to develop strategies for protection of the
Great Lakes. The OIG evaluated the Great Lakes Program at EPA's request to provide the Agency
with advice and assistance on how to (1) improve the LaMP and RAP processes, and (2) develop and
implement effective national strategies and agreements. OIG recommendations included:

      •      placing a priority on issuing written LaMPs;

      •      revising the LaMP process to address issues that hinder completion of the plans;

             identifying and agreeing on organizational roles and responsibilities with all EPA
             organizations that work in the  Great Lakes  (Regions 2,  3, 5,  and the Office of
             Research and Development); and
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       *      developing a new Great Lakes Strategy that focuses on goals, includes performance
             measures, and provides accountability for implementation.

       The Agency developed a detailed implementation plan to address OIG's recommendations
and is actively addressing each of the components. LaMP documents are scheduled to be released
in April, 2000; are-instituted Great Lakes U.S. Policy Committee, including States, Tribes, and other
Federal agencies, is considering RAP issues; and an internal draft of a Great Lakes Strategy was
developed for a spring presentation to the U.S. Policy Committee.

National Pollutant Discharge Elimination System Permits (NPDES^

The Agency is responsible for establishing controls on pollutants discharged from point sources and
non-point sources into waters of the United States. The National Pollutant Discharge Elimination
System (NPDES) program (which includes NPDES permits, urban wet weather, animal feeding
operation mining, pretreatment  program for non-domestic wastewater discharges into municipal
sanitary sewers, and biosolids management controls) is a key element of the  Agency's effort to
achieve its goal of clean and safe water.  OIG audits in 1998 identified significant delays in issuing
permits and a substantial backlog in the permitting process for pollutant dischargers into surface
waters. The Agency identified the NPDES permit backlog as a material weakness in its FY 1998
Integrity Act Report and implemented an extensive corrective action plan.

EPA's Office of Water worked with the States and Regions to develop a plan to  reduce the backlog
of permits while maintaining quality. The July 28,1999 plan contains four specific initiatives:

   •   Strategic Initiative #1:       Understand and better define the backlog

   *   Strategic Initiative #2:       Examine permitting efficiencies and facilitate programmatic
                                 and technical streamlining opportunities
    *
Strategic Initiative #3:       Provide funding and technical support for Regions and States
    •   Strategic Initiative #4:        Encourage Regions and States to share technical expertise and
                                 permitting tools

In addition, the "Clean and Safe Water" strategic goal for FY 2001 includes an annual performance
goal and performance measures under the objective "Reduce Loadings and Air Deposition" for the
NPDES program.

EPA Science

In F Y1994, GAO identified EPA Science as a potential vulnerability.  The Vice President's "Report
of the National Performance Review (September 1993)" raised similar concerns. There was a
perception by some that EPA did not maintain a satisfactory environmental science program, giving
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rise to questions concerning the scientific basis for EPA regulations and policies. The Agency
declared "EPA Science" as an Agency-level weakness in the FY 1994 Integrity Act process.
The Agency's strategy to strengthen EPA Science addresses key findings and recommendations of
a My 1994 Agency-wide Steering Committee report to the Administrator., "Research, Development,
and Technical Services at EPA: A New Beginning," and the March 1995 report of the National
Research Council's (NRC) Committee on Research and Peer Review in EPA.  The strategy also
outlines corrective actions for vulnerabilities identified in the National Performance Review
(specifically, Recommendation EPA 10: "Promote quality science for quality decisions").

In October 1999, ORD developed: The Strategic Framework for EPA Science which makes two
important proposals:  (1) to use cross-Agency unifying guiding principles  for viewing science
strategically across all Agency programs and Regions; and (2) incorporate the principles into the
Agency's strategic planning documents. ORD believes that the Strategic Framework can serve as
a means of enhancing the role of science in the Agency's strategic planning, and proposed that the
three principles be built into EPA's strategic planning process to establish a common framework for
viewing EPA science strategically.

Agency-Wide Peer Review

In FY 1997, GAO reported that implementation of EPA's Peer Review Policy was uneven across
the Agency. The Office of Research and Development (ORD) led an Agency-wide evaluation that
further substantiated GAO's claims, and reported peer review as an Agency-level management
control weakness in FY 1997. Corrective actions include (1) issuance of a Peer Review Handbook
providing extensive guidance on implementing peer review across the Agency; (2) development,
distribution, and presentation of training materials for the Handbook; (3) development of a database
to track products that are candidates for peer review and maintain records of completed peer reviews;
and (4) reiteration of the Agency' s Peer Review Policy requiring peer review of maj or scientific and
technical products that are used in Agency decision-making. During FY 2000, the Agency will
conduct oversight reviews to assess how well the implemented peer review process conforms to the
guidance.

Environmental Monitoring Management Council OSMMC)

Since its  creation in 1989,  the EMMC has made progress to  foster the  development and
implementation of consistent, Agency-wide monitoring approaches. These include:

   •   adoption of the Performance Based Measurement System (PBMS) to improve the quality of
       compliance monitoring data, reduce the cost of compliance monitoring for the regulated
       community, and eliminate institutional  barriers to the development and use of new
       monitoring technologies;
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   •   creation of a national environmental laboratory program and approval of the first group of
       States to serve as laboratory accrediting authorities; and

   •   accreditation by the National Institute of Standards and Technology (NIST) of the first group
       of private sector providers in October 1999.

   In FY 2000, the Quality and Information Board in EPA's Office of Environmental Information
will assume responsibility for the EMMC, continuing the following efforts.

   •   implementing the transition to the PBMS approach, especially with regard to changing
       Agency regulations, and developing and delivering the necessary training to EPA and State
       regulatory, permit and enforcement staffs;

   •   implementing the EMMC-developed mechanism for coordinating methods development; and

   •   completing development of the Methods Development Information System (MDIS) and an
       Agency web page dealing with monitoring methodology, updating the Environmental
       Monitoring Methods Index (EMMI) and posting EMMI and MDIS on the web page.

Reinventing Environmental Regulation

       In its  January  1999  report  "Major Management Challenges and Program Risks:
Environmental Protection Agency, " GAO found that EPA's current regulatory system is costly and
occasionally inflexible and that the Agency faces several challenges in making changes to the current
system. Thesechallenges include helping employees understand and support changes along with
obtaining consensus among varied stakeholders on what  objectives  or approaches to use  in
addressing important reinvention issues and policies.  Efforts are underway to achieve better
environmental results with less burden through the use of innovative and flexible approaches. The
Reinvention Action Council, composed of senior Agency managers, conveys reinvention priorities
back to the Programs and the Regions and is committed to continue and expand efforts to reward
innovation within the Agency.

EPA's Relationships with States

       GAO's January  1999  Report,  "Major Management Challenges and Program Risks:
Environmental Protection Agency," identified EPA-State relationships as a major management
challenge. The Report describes such issues as EPA oversight, relative roles and responsibilities,
priority setting, and financial and technical support

       Under the National Environmental Performance Partnership System (NEPPS), the Agency
committed itself to long-term collaboration with State agencies to improve EPA/State management
of national environmental programs.  An April 1999 GAO evaluation generally describes EPA's
implementation of NEPPS in a favorable way, but also provides recommendations for EPA and the
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States to further improve  the process.   The Agency's NEPPS Senior Management Team  is
considering investments in the following activities to strengthen the Agency's and the State's
performance partnerships:

       •      development of differential oversight guidelines or guidance;

       •      improved performance measurement (e.g., research linkages between outputs and
             outcomes, increased number of environmental indicators);

       •      improved environmental information management and reporting (e.g., invest in better
             data systems, burden reduction);

       *      increased frequency and extent of public participation in NEPPS activities;

       •      improved joint-priority setting processes  and clearer understanding of relative
             Federal and State roles and responsibilities; and

       •      improved implementation of PPGs.

Employee Competencies

       The Agency recognized that one of its greatest challenges over the next several years is the
development and implementation of a strategy that focuses the Agency's attention and resources on
employee development.  EPA faces a future of formidable programmatic challenges, accelerating
change and very stiff competition in recruiting people with the skills needed to effectively carry out
its mission. To address these concerns, EPA will need to make a continual investment in developing
its workforce.

       The Agency began addressing these human resource challenges by announcing several
national initiatives  on Senior Executive Service (SES) accountability, diversity and management
training, professional  development, and an intern program. The Workforce Development Strategy
(WDS) was created to respond to several of these initiatives and represents  a comprehensive,
inclusive strategy designed to prepare EPA's workforce for the future. The Agency is in the second
year of implementing the WDS and, while much work remains, has made a number of significant
accomplishments. The Strategy includes the following components:

       »      The  Workforce Assessment identifies the critical skills needed today and through
             the year 2020 to prepare the EPA workforce to meet the challenges of the Agency's
             mission.  This assessment is completed and forms the foundation for the programs
             described below.

       •      New Skills/New Options is a developmental program focused on equipping EPA's
             support staff with the skills they need to assume their vital role in  the Agency.
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Enrollment of support staff from across the Agency in a pilot development program
is expected in the Fall of 2000 with full implementation in 2001.

The Mid-level Development Program identifies and provides the generic, cross-
cutting skills and competencies mid-level employees need to be successful in a more
dynamic, interdependent work place.  EPA is testing specially developed training
courses and will pilot a comprehensive employee development approach.
The Leadership Development Program will develop supervisors, managers and
executives who will nurture a culture of learning and shared leadership for a high
performing EPA.    The Agency expects to have a comprehensive guide  for
management development and a new SES Candidate Development program in place
in 2000.

Through the EPA Intern Program, the Agency hires and develops high-quality,
diverse employees who will become part of the future leadership of the Agency.
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                                 Key Programs
                                By Appropriation
                              (Dollars In Thousands)

Acid Rain -CASTNet
Acid Rain -Program
Implementation
Administrative Law
Administrative Services


Air Toxics Characterization
Air Toxics Federal Standards
Air Toxics Implementation
Air Toxics Research
Air,State,Local and Tribal
Assistance Grants: Other Air
Grants
Assessments
Assistance Agreement Audits

Assistance Agreement
Investigations
ATSDR Super-hind Support
Brownfields

CCTI: International Capacity
Building
CCTI: RESEARCH
Center for Environmental

S&T
EPM

EPM
EPM
LUST
SUPERFUND
EPM
EPM
EPM
S&T
STAG


SUPERFUND
IG
SUPERFUND
IG

SUPERFUND
EPM
SUPERFUND
EPM

S&T
EPM
FY 1999
Enacted
$4,000.0
$10,309.4

$2,324,3
$10,471.9
$35.4
$5,859.2
$9,088,2
$24,637.9
$10,561.6
$19,507.0
$214,759.8


$87,712.3
$3,428.7
$3,401.8
$2,650.4

$76,000.0
$1,269.9
$91,333.3
$4,322.9

$10,000.0
$3,965.8
FY2000
Enacted
$4,000.0
$10,606.3

$2,470.3
$54,119.0
$103.3
$24,172.1
$8,452.9
$0.0
$5,081.7
$18,121.7
$217,916.8


$83,857.7
$3,947.5
$3,401,8
$2,762.8

$70,000.0
$1,196.3
$91,018.8
$5,594.4

$0.0
$0.0
FY2001
Request
$4,000.0
$12,287.1

$2,465,0
$58,564.9
$110.4
$25,243.1
$9,503.7
$0.0
$5,692.0
$17,406.4
$222,916.8


$83,204.7
$2,991.5
$2,372.4
$2,771.1

$64,000.0
$1,441.0
$90,185,7
$10,576.2

$0.0
$0.0
Statistics (CEIS)
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   Key Programs
 By Appropriation
(Dollars in Thousands)

Chesapeake Bay (CWAP)
Children* Health
Civil Enforcement



Civil Enforcement -
CWAP/AFO Related
Civil Rights/Title VI
Compliance
Clean Air Partnership Fund
Climate Change Research
Climate Change Technology
Initiative: Buildings
Climate Change Technology
Initiative: Carbon Removal
Climate Change Technology
Initiative: Industry
Climate Change Technology
Initiative: State and Local
Climate Change Program
Climate Change Technology
Initiative: Transportation

Coastal Environmental
Monitoring
Commission for Environmental
Cooperation - CEC
Common Sense Initiative

EPM
EPM
EPM
S&T
OIL
SUPERFUND
EPM

EPM

STAG
S&T
EPM

EPM

EPM

EPM


EPM

S&T
S&T

EPM

EPM
FY 1999
Enacted
$20,361.5
$5,088.6
$82,397.6
$589.9
$1,225.3
$736.6
$0.0

$1,637.1

$0.0
$15,970.6
$38,800.0

$0.0

$22,086.1

$2,500.0


$4,799.5

$26,950.5
$0.0

$3,084.0

$6,051.0
FY 2000
Enacted
$20,308.9
$15,680.2
$81,799.7
$299.6
$1,298.5
$251.6
$935.6

$1,331.7

$0.0
$20,592.2
$42,640.9

$1,000.0

$21,991.7

$2,508.0


$2,604.8

$27,000.0
$6,954.0

$3,222.5

$1,980.1
FY2001
Request
$19,517.4
$16,056.7
$91,510.0
$318.1
$1,360.1
$262.0
$1,008.6

$1,404.5

$85,000.0
$22,726.3
$80,063.8

$3,410.0

$63,686.1

$4,525.0


$11,995.0

$53,089.0
$7,255.4

$3,263.5

$3,935.5
      SA-18

-------
   Key Programs
  By Appropriation
(Dollars in Thousands)


Community Right to Know
(Title III)
Compliance Assistance and
Centers
Compliance Incentives
Compliance Monitoring

Congressional Projects
Congressional/Legislative
Analysis
Contract and Procurement
Investigations
Contract Audits
Contracts Management

Criminal Enforcement



S&T
EPM
EPM
OIL
SUPERFUND
EPM
SUPERFUND
EPM
S&T
SUPERFUND
EPM
EPM
SUPERFUND
IG
SUPERFUND
IG
SUPERFUND
EPM
LUST
SUPERFUND
EPM
S&T
SUPERFUND
FY 1999
Enacted
$867.0
$4,544.7
$18,920.1
$274.9
$101.3
$5,129.1
$213.6
$49,095.2
$4,568.4
$3,798.4
$0.0
$0.0
$0.0
$1,844.1
$1,068.9
$4,245.1
$705.5
$16,232.7
$69.6
$8,683.7
$24,319.8
$3,327.7
$6,789.0
FY2000
Enacted
$630.4
$4,797.5
$22,954.8
$353.4
$109.0
$4,975.1
$220.6
$48,500.0
$4,516.2
$3,388.0
$1,968.5
$2,997.7
$121.3
$1,936.2
$1,068.9
$4,731.0
$708.5
$0.0
$0.0
$0.0
$23,699.9
$4,436.3
$8,992.6
FY 2001
Request
$641.8
$5,137.5
$24,039.7
$280.7
$117.7
$5,451.2
$227.9
$58,014.2
$5,005.6
$4,499.7
$2,173.3
$3,058.3
$216.3
$1,914.3
$1,072.0
$4,441.0
$917.0
$0.0
$0.0
$0.0
$26,477.7
$4,867.9
$10,184.6
      SA-19

-------
                                Key Programs
                              By Appropriation
                             (Dollars in Thousands)

CWAP - Related Research
Design for the Environment
Direct Public Information and
Assistance

Drinking Water Consumer
Awareness
Drinking Water Implementation
Drinking Water Regulations

Effluent Guidelines (CWAP)
EMPACT

Employee Integrity
Investigations
Endocrine Disrupter Research
Endocrine Disrupter Screening
Program
Enforcement Training

Environment and Trade
Environmental Appeals Boards

Environmental Education
Environmental Finance Center
Grants (EFC)
Environmental Monitoring and

S&T
EPM
EPM

SUPERFUND
EPM

EPM
EPM
S&T
EPM
EPM
S&T
IG

S&T
EPM

EPM
SUPERFUND
EPM
EPM
SUPERFUND
EPM
EPM

S&T
FY 1999
Enacted
$1,406.0
$4,724.9
$0.0

$0.0
$1,622.9

$28,134.2
$31,807.8
$2,118.9
$22,372.2
$7,889.2
$6,313.7
$953.4

$12,098.4
$4,259.0

$3,142.9
$661.1
$389.0
$0.0
$0.0
$7,767.6
$1,065.0

$33,153.5
FY2000
Enacted
$7,087.5
$4,741.9
$3,719.4

$529.5
$1,537.2

$29,668.5
$30,772.4
$2,458.1
$21,116.9
$8,016.8
$6,351.8
$991.8

$8,038.0
$12,553.8

$4,750.0
$955,4
$518.0
$1,789.5
$91.3
$7,271.1
$1,250.0

$30,543.5
FY2001
Request
$7,909.9
$4,946.9
$4,141.9

$647.4
$1,595.8

$32,234.5
$35,197.9
$2,611.9
$23,610.1
$8,648.8
$7,137.6
$923.2

$13,241.1
$10,215.4

$4,567.9
$1,160.3
$4,606.4
$1,758.7
$106.5
$9,390.7
$480.0

$30,332.2
Assessment Program, EMAP
                                   SA-20

-------
   Key Programs
  By Appropriation
(Dollars in Thousands)

Environmental Technology
Verification (ETV)
Existing Chemical Data,
Screening, Testing and
Management
Exploratory Grants Program
Facility Operations: Agency
Rental/ Direct Lease

Facility Operations: Agency
Rental/ Direct Lease


Facility Operations: Agency
Utilities

Facility Operations: Repairs
and Improvements
Facility Operations: Security

Federal Facilities
Federal Preparedness
Financial Statement Audits

Global Toxics
GLOBE
Grants Management



S&T

EPM


S&T
EPM

LUST
OIL

IG
SUPERFUND
EPM

SUPERFUND
B&F

EPM
SUPERFUND
SUPERFUND
SUPERFUND
IG
SUPERFUND
EPM
EPM
EPM
LUST
SUPERFUND
FY1999
Enacted
$6,908.5

$14,225.3


$12,038.0
$133,357.0

$723.3
$511.7

$3,236.6
$32,743.2
$9,985.7

$29.5
$15,428.0

$12,219.7
$742.5
$29,368.2
$11,307.5
$3,300.6
$886.9
$315.3
$0.0
$7,331.5
$211.3
$1,026.0
FY2000
Enacted
$6,392.6

$20,394.5


$10,803.5
$0.0

$0.0
$0.0

$0.0
$0.0
$0.0

$0.0
$0.0

$0.0
$0.0
$27,750.6
$11,028.2
$3,447.4
$886.9
$535.0
$1,000.0
$0.0
$0.0
$0.0
FY2001
Request
$6,699.5

$24,412.4


$10,669.0
$0.0

$0.0
$0.0

$0.0
$0.0
$0.0

$0.0
$0.0

$0.0
$0.0
$29,803.8
$12,854.8
$3,430.9
$825.7
$588.4
$1,000.0
$0.0
$0.0
$0.0
      SA-21

-------
   Key Programs
 By Appropriation
(Dollars In Thousands)

Grants to States for Lead Risk
Reduction
Great Lakes (CWAP)
Great Lakes Cleanup Grants
Great Lakes National Program
Office (CWAP)
Gulf of Mexico (CWAP)
Hazardous Substance
ResearchrHazardous Substance
Research Centers

Hazardous Substance
Research: Superfund Innovative
Technology Evaluation (SITE)

Hazardous Waste Research
Human Health Research
Human Resources Management



Immediate Office of the
Administrator
Indoor Air Research
Indoor Air: Buildings
Indoor Air: Buildings
Indoor Air: Homes

STAG

EPM
STAG
EPM

EPM
S&T


SUPERFUND
S&T


SUPERFUND
S&T
S&T
EPM
S&T
LUST
SUPERFUND
EPM

S&T
EPM
S&T
EPM
FY 1999
Enacted
$13,712,2

$5,395.3
$0.0
$14,783.8

$3,798.9
$4,529.8


$0.0
$7,695.9


$0.0
$6,167.9
$49,652.2
$19,486.1
$326.0
$36.3
$2,083.6
$2,791.3

$2,818.7
$972.5
$19.5
$2,286.0
FY2000
Enacted
$13,712.2

$3,263.7
$0.0
$15,077.6

$4,196.0
$2,504.7


$0.0
$7,017.3


$0.0
$5,379.8
$48,883.9
$0.0
$0.0
$0.0
$0.0
$3,729.8

$0.0
$1,640.9
$31.8
$1,516.9
FY2001
Request
$13,712.2

$4,111.1
$50,000.0
$13,196.7

$4,019.5
$0.0


$2,594.5
$0.0


$5,932.0
$6,880.8
$52,998.6
$0.0
$0.0
$0.0
$0.0
$3,008.2

$0.0
$1,693.4
$0.0
$2,829.8
      SA-22

-------
   Key Programs
 By Appropriation
(Dollars in Thousands)


Indoor Air: School

Information Technology
Management

Innovative Community
Partnership Program
Integrated Information
Initiative (1-3)

International Brownfields
International Safe Drinking
Water
Lake Champlain (CWAP)
Lead Risk Reduction Program
Leaking Underground Storage
Tanks (LUST)Cooperative
Agreements
Long Island Sound (CWAP)
Marine Pollution (CWAP)
Mobile Sources
Multilateral Fund
NACEPT Support
NAFTA Implementation

S&T
EPM
S&T
EPM

SUPERFUND
EPM

EPM

STAG
EPM
EPM

EPM
EPM
LUST


EPM
EPM
S&T
EPM
EPM
EPM
FY 1999
Enacted
$982.2
$2,925.4
$792.3
$22,135.7

$4,074.2
$4,701.8

$0.0

$0.0
$159.0
$684.0

$2,000.0
$18,214.4
$58,990.0


$900.0
$0.0
$50,821.8
$11,362.0
$0.0
$0.0
FY2000
Enacted
$438.2
$3,266.5
$1,021.9
$13,309.5

$2,380.4
$309.8

$866.7

$0.0
$168.0
$793.0

$2,187.3
$13,833.9
$56,466.8


$975.0
$7,580.0
$48,056.9
$12,000.0
$1,822.5
$507.2
FY20Q1
Request
$558.7
$4,882.9
$238.0
$11,039.9

$3,601.5
$4,841.5

$14,936.0

$16,000.0
$173.0
$848.0

$1,000.0
$13,573.2
$58,050.0


$500.0
$8,059.8
$56,123.8
$21,000.0
$2,166.7
$603.7
      SA-23

-------
   Key Programs
  By Appropriation
(Dollars in Thousands)

National Association Liaison
National Estuaries
Program/Coastal Watersheds
(CWAP)
National Nonpoint Source
Program Implementation
(CWAP)
National Program chemicals:
PCBs, Asbestos, Fibers,and
Dioxin
NEPA Implementation
New Chemical Review
New Construction :RTP New
Building Project
New Construction: New
Headquaters Project


NIEHS Superfund Support
NPDES Program (CWAP)
Oil Spills Preparedness,
Prevention and Response
Other Federal Agency
Superfund Support
Ozone
Pacific Northwest (CWAP)
Particular Matter
Particulate Matter Research
Partnership with Industrial and

EPM
EPM


EPM


EPM


EPM
EPM
B&F

EPM

B&F
SUPERFUND
SUPERFUND
EPM
OIL

SUPERFUND

EPM
EPM
EPM
S&T
EPM
FY 1999
Enacted
$0.0
$16,528.3


$16,033.7


$3,268.3


$9,269.5
$14,659.5
$36,000.0

$8,367.3

$5,520.0
$2,058,0
$60,000.0
$30,862.6
$11,851.9

$10,000.0

$30,979.3
$1,022.5
$26,807.0
$55,842.9
$6,267.8
FY 2000
Enacted
$322.4
$18,029,2


$15,401.1


$5,753.6


$9,901.4
$13,261.4
$0.0

$0.0

$0.0
$0.0
$60,000.0
$36,274.9
$11,820.4

$10,000.0

$29,696.0
$1,043.2
$26,421.2
$62,300.5
$6,855.6
FY 2001
Request
$337.4
$16,135.0


$16,944.3


$5,648.5


$10,711.9
$13,697.6
$0.0

$0.0

$0.0
$0.0
$48,526.7
$41,592.0
$12,560.3

$10,585.0

$32,092.2
$1,064.8
$33,226.4
$65,267.9
$5,776.3
      SA-24

-------
    Key Programs
  By Appropriation
 (Dollars in Thousands)

Other Countries
Pesticide Applicator
Certification and Training
Pesticide Registration



Pesticide Residue Tolerance
Reassessments

Pesticides Program
Implementation Grant
Pfiesteria (CWAP)
Planning and Resource
Management


Planning, Analysis, and Results
-IG

Pollution Prevention Incentive
Grants to States
Pollution Prevention Program
Pollution Prevention Tools and
Technologies
Program Audits

Program Evaluation - IG


EPM

EPM
S&T
EPM
S&T
EPM

.S&T
STAG

EPM
EPM

LUST
SUPERFUND
IG

SUPERFUND
STAG

EPM
S&T

IG
SUPERFUND
IG
FY 1999
Enacted

$10,438.0

$30,886.0
$2,612.4
$35,243.2
$2,856.6
$9,970.2

$127.8
$13,114.6

$2,500.0
$31,675.4

$661.6
$19,560.1
$0.0

$0.0
$5,999.5

$9,449.5
$30,509.5

$7,283.3
$2,981.1
$0.0
FY2000
Enacted

$9,391.2

$34,323.6
$2,168.3
$31,472.5
$2,379.5
$11,446.4

$151.4
$13.114.6

$100.0
$31.012.2

$820.4
$12,247.3
$0.0

$0.0
$5,999.5

$8,333.2
$27,442.0

$8,044.5
$2,981.1
$1,389.4
FY2001
Request

$10,587.0

$39,292.7
$2,221.3
$34,083.6
$2,345.1
$7,578.4

$144.3
$13,114.6

$250.0
$36,554.0

$905.9
$16,311.8
$1,302.2

$313.6
$5,999.5

$8,534.4
$19,469.3

$8,891.7
$3,899.9
$2,219.1
SUPERFUND
       SA-25
$0.0
$246.9
$555.0

-------
                                Key Programs
                               By Appropriation
                              (Dollars in Thousands)

Program Integrity
Investigations

Project XL
RCRA Corrective Action
RCRA Permitting
RCRA State Grants
Recycling
Regional Geographic Program
Regional Haze
Regional Management

Regional Operations and
Liaison
Regional Program
Infrastructure




Regional Science and
Technology

Reinventing Environmental

IG

SUPERFUND
EPM
EPM
EPM
STAG
EPM
EPM
EPM
EPM
SUPERFUND
EPM

EPM

LUST
OIL
IG
SUPERFUND
EPM

SUPERFUND
EPM
FY1999
Enacted
$439.8

$471.7
$6,589.0
$31,059.9
$13,325.0
$98,598.2
$4,232.9
$8,070.6
$12,271.7
$30,303.6
$12,231.4
$0.0

$47,590.0

$310.3
$26.1
$582.5
$18,023.3
$2,923.1

$3,028.6
$15,054.9
FY2000
Enacted
$1,000.0

$471.7
$5,114.3
$36,610.5
$15,724.4
$98,598.2
$3,639.3
$11,989.8
$1,851.5
$7,819.8
$2,244.0
$598.3

$21,686.3

$144.0
$0.0
$0.0
$8,053.0
$2,823.1

$4,660.7
$0.0
FY2001
Request
$1,106.3

$380.0
$5,031.0
$40,062.8
$16,311.6
$106,598.2
$3,880.5
$12,193.1
$2,233.0
$8,834.9
$2,362.0
$613.5

$20,626.0

$144.4
$26.2
$0.0
$7,873.8
$3,728.3

$4,801.0
$0.0
Information  (REI)
Reinvention Programs,
Development and Coordination
EPM
$4,334.1    $19,421.4    $23,504.0
                                    SA-26

-------
                                Key Programs
                               By Appropriation
                             (Dollars in Thousands)

Rent, Utilities and Security


Risk Management Plans
Rural Water Technical
Assistance
Safe Drinking Water Research
SBREFA
Science Advisory Board
Small Business Ombudsman
Small, Minority, Women-Owned
Business Assistance
Source Reduction
Source Water Protection
(CWAP - related)
South Florida/Everglades
(CWAP)
STAR Fellowships Program
State Nonpoint Source Grants
(CWAP)
State Pesticides Enforcement
Grants
State Pollution Control Grants
(Section 106) (CWAP)
State PWSS Grants
State Toxics Enforcement

EPM
LUST
OIL
SUPERFUND
EPM
EPM
S&T
EPM
EPM
EPM
EPM
EPM
EPM
EPM
S&T
STAG
STAG
STAG
STAG
STAG
FY1999
Enacted
$0.0
$0.0
$0.0
$0.0
$7,254.9
$13,050.0
$45,734.6
$760.3
$0.0
$1,110.3
$2,064.4
$2,299.0
$10,741.3
$2,869.3
$8,941.0
$200,000.0
$19,511.7
$115,529.3
$93,780.5
$7,364.2
FY 2000
Enacted
$176,659.7
$845.3
$508.3
$40,562.7
$7,242.8
$13,987.4
$47,367.6
$777.3
$2,860.6
$1,120.3
$2,188.3
$1,950.9
$10,302.3
$2,923.0
$8,952.6
$200,000.0
$19,911.6
$115,529.3
$93,305.5
$7,364.2
FY 2001
Request
$199,253.5
$718.5
$508.3
$44,903.0
$7,913.5
$688.0
$48,872.5
$801.9
$2,674.0
$1,162.6
$2,367.4
$2,069.1
$11,631.1
$2,938.4
$10,089.9
$250,000.0
$19,911.6
$160,529.3
$93,305.5
$7,364.2
Grants
                                   SA - 27

-------
   Key Programs
  By Appropriation
(Dollars in Thousands)

State Underground Injection STAG
Control Grants
State Water Quality STAG
Cooperative Agreements
(CWAP)
State Wetlands Program Grants STAG
(CWAP)
Stationary Sources EPM
Superfimd - Cost Recovery SUPERFUND
Superfund - Justice Support SUPERFUND
Superfimd - Maximize PRP SUPERFUND
Involvement (including reforms)
Superfund Remedial Actions SUPERFUND
Superfund Removal Actions SUPERFUND
System Modernization EPM
S&T
SUPERFUND
Toxic Release Inventory / Right- EPM
to-Know (RtK)
Tribal General Assistance STAG
Grants
Tropospheric Ozone Research S&T
U.S. - Mexico Border EPM
UIC Program EPM
Underground Storage Tanks EPM
(UST)
Urban Environmental Quality EPM
and Human Health
UST State Grants STAG
Waste Combustion EPM
FY 1999
Enacted
$10,500.0

$19,000.0


$15,000.0

$14,641.4
$30,580.6
$29,000.0
$88,857.0

$585,181.4
$199,216.8
$0.0
$0.0
$0.0
$19,799.6

$42,585.4

$18,100.4
$4,929.4
$9,412.2
$6,378.3

$0.0

$10,544.7
$6,890.3
FY2000
Enacted
$10,975.0

$19,000.0


$15,000.0

$16,566.5
$30,269.1
$28,663.5
$82,009.6

$499.799.0
$200.860.3
$10.570.6
$1.640.6
$1.481.7
$17,671.8

$42,628.4

$6,273.7
$4,142.3
$9,594.9
$6,203.9

$0.0

$11,944.7
$4,438.3
FY 2001
Request
$10,975.0

$19,000.0


$15,000.0

$17,812.9
$32,886.4
$28,663.5
$86,040.1

$543,682.9
$199,218.0
$10,570.6
$1,640.6
$1,481.7
$17,647.7

$52,585.4

$8,543.4
$5,176.2
$10,687.6
$6,906.4

$3,395.0

$11,944.7
$4,677.5
      SA-28

-------
   Key Programs
 By Appropriation
(Dollars in Thousands)
              FY1999     FY2000     FY2001
              Enacted	Enacted	Request
Waste Minimization
Water Infrastructure: Alaska
Native Villages
Water Infrastructure:Boston
Harbor
Water Infrastructure: Bristol
County
Water Infrastructure: Clean
Water State Revolving Fund
(CW-SRF)
Water InfrastructurerDrinking
Water State Revolving Fund
(DW-SRF)
Water Infrastructure: Mexico
Border
Water Infrastructure:New
Orleans
Water Quality Criteria and
Standards (CWAP)
Water Quality Monitoring and
Assessment (CWAP)
Watershed Research
Wetlands (CWAP)
EPM
STAG

STAG

STAG

STAG
.*

STAG


STAG

STAG

EPM

EPM

S&T
EPM
$2,413.2
$30,000.0

$50,000.0

$2,610.0

$1,350,000.0


$775,000.0


$50,000.0

$6,525.0

$19,110.9

$0.0

$10,297.5
$15,694.9
$1,913.3
$30,000.0

$0.0

$2,000.0

$1,345,421.0


$820,000.0


$50,000.0

$3,800.0

$18,545.1

$9,762.6

$7,481.8
$15,730.0
$1,966.5
$15,000.0

$0.0

$3,000.0

$800,000.0


$825,000.0


$100,000.0

$10,000.0

$22,765.0

$11,778.7

$6,398.3
$17,315.2
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                                EPA User Fee Program

       In F Y 2001, EPA will have five (5) user fee programs in operation. These user fee programs
are as follows:

«      Motor Vehicle and Engine Compliance Program Fee

       This fee is authorized by the Clean Air Act of 1990 and is managed by the Office of Air and
       Radiation. Fee collections began in August 1992. This fee is imposed on manufacturers of
       light-duty vehicles, light and heavy trucks, and motorcycles. It covers the cost of certifying
       new engines and vehicles and monitoring compliance of in-use engines and vehicles. In F Y
       2001, EPA expects to collect $9,7 million from this fee.

*      Pesticide Reregistration Maintenance Fee

       The 1988 amendments to the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)
       mandated accelerated reregistration of all pesticide products registered prior to November
       1984. Congress authorized the Agency to collect two kinds of fees - Pesticide Reregistration
       Fees and annual Pesticide Maintenance Fees. The Pesticide Reregistration Fee expired hi
       1992. The Agency continues to collect Pesticide Maintenance Fees, which are deposited into
       the non-appropriated Reregistration and Expedited Processing Revolving Fund (FIFRA
       Fund). Pesticide Maintenance Fees are assessed on the manufacturers of active ingredients
       used in pesticide products based on the manufacturer's market share.  The Food Quality
       Protection Act of 1996 (FQPA) extended Pesticide Maintenance Fees through 2001 and
       increased the cap on fees by $2 million through 2000. EPA expects to collect $14 million
       from this fee in 2001.

•      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, Drag, 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 2001, the
       Agency expects to replace this  fee with  a more comprehensive cost-recovery fee. The
       FFDCA, as amended by FQPA, mandates that EPA must require the payment of such fees
       as will, in the aggregate, be sufficient to provide, equip, and maintain an adequate service for
       establishing tolerances. The Agency is Devaluating the fee schedule to recover the full cost
       of tolerance determinations as directed by the FQPA. A proposed Tolerance Fee Rule was
       published in 1999 and is scheduled to become final in 2001.  It is difficult to accurately
       estimate the impact the new fee will have on the submission of tolerances for review; the
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       higher costs could cause manufacturers to significantly cut back the number of tolerances
       requested. Based on the proposed rule, the budget estimates an increase of $26 million in
       tolerance fee collections due to the new rule in 2001, of which $7 million will be used to
       offset appropriated funding for tolerance reassessments.

•      Pre-manufacture Notice Fee

       Since 1989, this fee has been collected for the review and processing of new chemical Pre-
       Manufacture Notices (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 me Agency may charge for a PMN review.  EPA expects to
       collect $3 million in PMN fees in 2001 under the existing fee structure.

•      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
       2001 and subsequent years.

USER FEE PROPOSALS

•      Pesticide Registration Fee

       The  Administration will propose authorization language, subject to an appropriations
       language trigger, to implement the Pesticide registration Fee  authorized by  FIFRA and
       U.S.C. 9701 "Fees and Charges for Government Services and Things of Value." Following
       enactment of authorization and appropriations language, the Agency expects to collect $16
       million in 2001 from the reinstatement of Pesticide Registration Fees that Congress had
       suspended through 2001. Through such fees, manufacturers of new pesticide products share
       the cost of ensuring that authorized uses of these products do not pose unreasonable risk to
       human health and the environment. Pesticide Registration Fees will be deposited in a special
       fund in the U.S. Treasury to be available to the Agency, subject to appropriation, to cover the
       cost of issuing registrations.

       Pre-manufacture Notice Fee

       The Agency is proposing appropriations language to raise the existing Pre-Manufacture
       Notice (PMN) fees to allow the Agency to cover the full cost of the PMN program.  This
       language would modify the current statutory cap hi the Toxic Substances Control Act on the
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total fee that EPA is allowed to charge. Under the current fee structure, the Agency will
collect $3,000,000 in FY 2001. The Agency expects to collect $8,000,000 annually from the
fee cap modification, when fully implemented. 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 F Y 2001 after the anticipated rulemaking, the Agency estimates collections of $4,000,000.
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                                Working Capital Fund
      In FY 2001, the Agency begins its fourth year of operation of the Working Capital Fund
(WCF).  A WCF is a revolving fund authorized by law to finance a cycle of operations, where the
costs of goods and services provided are charged to the users on a fee-for-service basis. The funds
received are available without fiscal year limitation, to continue operations and to replace capital
equipment. EPA's WCF was implemented under the authority of Section 403 of the Government
Management Reform Act of 1994 and EPA's FY 1997 Appropriations Act.  Permanent WCF
authority was contained in the FY 1998 Appropriations Act.

      The Chief Financial Officer and the Office of the Comptroller initiated the WCF in F Y 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 seventeen permanent
members from the program offices and the regional offices.

      Two Agency services, begun in F Y1997 will continue into F Y1999. These are the Agency's
computer center and telecommunications  operations, managed by the Enterprise Technology
Services Division  (ETSD), Research Triangle Park, North Carolina and Agency postage costs,
managed by the Office of Administration, Washington, DC. The Agency's FY 2001 budget request
includes resources for these two activities in each National Program Manager's submission, totaling
approximately $125 million. These estimated resources may be increased to incorporate program
office's additional service needs during the operating year. To the extent that these increases are
subject to Congressional reprogramming notifications, the Agency will comply with all applicable
requirements.
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                            The Customer Service Program

Background

       The Customer Service Program (CSP) was established hi 1993, immediately after President
Clinton signed Executive Order 12862, "Setting Customer Service Standards." The Customer
Service staff of the Office of Policy, Economics and Innovation (in the Office of the Administrator)
coordinates and supports all aspects of the Customer Service Program(CSP). The CSP staff directly
or through contracts support EPA's Customer Service Steering Committee (CSSC), the group that
sets CSP policy, its 11  work and process groups, and customer service coordinators across the
Agency; coordinate an annual conference in partnership with a regional  host; develop and
disseminate training and measurement support tools and techniques; and gather and share best
practices and success stories to speed customer service improvement.  By involving approximately
400 individuals from staff and management through CSSC work groups and office/region/laboratory
Customer Service Councils, the CSP leverages its two person staff to implement the Agency's
Customer Service Strategy.

What Improved Customer Service Will Achieve

       EPA published a Customer Service Plan in September 1995, and in May 1997, officially
adopted critical process standards and a set of universal standards that apply to the work of everyone
at EPA. The Agency's Six Principles of Customer Service are:

1.     Be helpful! Listen to your customers!
2.     Respond to all phone calls by  the end of the next business day.
3.     Respond to all correspondence within 10 business days.
4.     Make clear, timely, accurate information accessible.
5.     Work collaboratively with partners to improve all products and services.
6.     Seek and use customers' ideas and input!

       The Customer Service Program Strategy adopted by the CSSC in the fall of 1998 focuses
on:
•      helping all EPA employees understand the importance and substantial mission related
       benefits of improving service to the public and each other;
*      providing employees with goals (standards) and guidelines for improvement and involving
       them in identifying and attempting to eliminate barriers to  achieving customer service
       excellence;
•      providing training to build staff capacity to achieve the standards and effectively apply
       customer service skills, and building a culture that encourages learning;
•      developing tools and building capacity to gather formal and informal feedback and measure
       customer satisfaction (service, product and process improvement) over time;
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•      learning what we need to do to increase satisfaction with our services and our treatment of
       customers;
•      recognizing and rewarding customer service excellence

       The CSSC adopted the Government Performance and Results Act goal included in EPA's
strategic plan that by 2003, all EPA staff will be meeting the customer service standards that apply
to their work and will have received training necessary to assist them to achieve the standards.

       Because customer feedback and satisfaction measurement are critical underpinnings  to the
overall program, in 1998 the CSP developed "Hearing the Voice of the Customer - Customer
Feedback and Customer  Satisfaction  Measurement  Guidelines."  In  1999, CSP  sponsored a
workshop to train the first group of 23 advisor/consultants to assist people across the Agency  to use
the guidelines to obtain and use customer input. Additional workshops will continue to be sponsored
hi partnership with regions and offices interested in improving their capability to  obtain and use
customer input.  On the informal feedback side, the CSP encourages organizations to document
complaints and comments and make improvements based on them. Further, the CSP reported bi-
monthly, under the "Conversations with America" effort directed by Presidential Memo in March
1998, to the National Partnership for Reinventing Government (and the American people via the
Internet)  on the activities across the nation

       All feedback instruments continue to be cleared through the OMB under the  CSP generic
Information Collection Request (ICR) for customer  satisfaction surveys. EPA's cross agency
application for a 3-year renewal of its ICR (for FY 2000- 20002) was submitted to OMB in
September 1999.

The CSP also coordinated EPA's participation in the NPR led 1999 Government-wide Customer
Satisfaction Survey and will work with the follow-up as a result of the findings. EPA's customer
segment, as a surrogate to the American people, was reference librarians in public  libraries across
the nation.  Libraries provide direct, unbiased service to a broad spectrum of the American people
across the country and are available to individuals regardless of age, social status, or educational
background. EPA decided to examine the customer service aspects of the information provision part
of its mission and chose to focus on Internet users because web pages are representative of all EPA
programs, Internet is becoming increasingly more accessible to the general public (in 1999,50 % of
the public; five years prior only 30%), and increasing public access to environmental information
is a strategic goal of the Agency.

       Over 200 EPA staff are certified to facilitate training across the Agency. Many are involved
in delivering  both Forging  the Links (an EPA-specific service  workshop that  ties service
improvement to better accomplishment of the Agency's  mission and develops  rough plans to
eliminate barriers to achieving world class service), and customer skills courses that supplement the
workshop. Through sharing benchmarking/best practices information and by sponsoring the annual
conference, the CSP supplements training opportunities. The annual conferences bring outstanding
speakers, best in class
                                        SA-35

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service deliverers, EPA, federal and state employees and managers together to share information and
speed adoption of best practices.

      Through recognizing outstanding service, the Agency highlights, encourages, and reinforces
service excellence. Many offices and regionsin 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.

Expected Results

       In support of the Customer Service Executive Order and various Presidential memorandums
in F Y 2001, the Agency will maintain leadership and coordination of the National CSP by providing:

«      policy and guidance development;
*      communication and liaison with Senior managers, the National Partnership for Reinventing
       Government (NPR), and other federal and state partners;
•      best practices research;
•      conversations with American reporting;
•      direct and contractual support to the CSP committees and work groups;
*      continuous support for guidelines and measurements;
•      a fourth National Customer Service Conference;
•      increased access to CSP information via the Intra and Internet; a gateway to other customer
       service information.

       EPA's Administrator Carol Browner has stated that "EPA will be a model for all regulatory
agencies by fully integrating customer satisfaction measures into our strategic planning, budgeting
and decision making, while recognizing the diversity of our customers and the need for balancing
competing and conflicting interests. Above all, we will strengthen our ability to listen to the voice
of our customers so that we can identify their needs and act upon them.." EPA's Customer Service
Program reflects the Agency's commitment to enhance customer service,

FTE: 2.2     Funding: $200,000 (request)
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                           Costs and Benefits of Economically
                         Significant Rules in FY 2000 or FY 2001
Goal 1: Clean Air
Tier II motor vehicle emissions standards and gasoline sulfur control requirements (signed on
December 21.1999^

       The final Tier 2 rale was announced by the President on December 21, 1999. This rule
establishes the next generation of emission standards for light-duty vehicles and light-duty trucks.
The rulemaking also establishes limitations on the sulfur content of gasoline available nationwide.
Sulfur in gasoline has a detrimental impact on catalyst performance and could be a limiting factor
in the introduction of advanced technologies on motor vehicles. The primary focus of this action is
reducing emissions of nitrogen oxides and non-methane hydrocarbons, pollutants which contribute
to ozone pollution. The light-duty vehicle and light-duty truck standards will phase in beginning the
2004 model year, as per Clean Air Act requirements.

       EPA estimates the program will cost industry $4 billion annually once the entire program is
phased in, including vehicle costs of less than $100 for cars, $200 for light-duty trucks, and $350 for
medium-duty passenger vehicles. Costs include costs to employ improved technologies such as
enhanced catalyst systems, improved engine and exhaust system designs, improved evaporative
emissions controls and advanced fuel and engine control systems. Costs also include a large research
and development effort for integrating these components into the most efficient system for emissions
control.

       By the year 2030, when the fleet is fully turned over, monetized health and environmental
benefits are estimated to be $25.2  billion (in constant 1997 dollars).  The Tier 2/gasoline sulfur
standards would, in the long term, result in substantial benefits, such as the yearly avoidance of
approximately 4,300 premature deaths, approximately 2,300 cases of bronchitis, and significant
numbers of hospital visits, lost work days, and multiple respiratory ailments, especially those that
affect children.  The new tailpipe standards will reduce emissions of nitrogen oxides from cars by
about 77 percent and SUVs by 95%. Total NOX emissions will be reduced by nearly 3 million tons
annually by 2030,  In addition, the new gasoline sulfur standards will reduce the sulfur level in
gasoline by approximately 90%.

Control of Exhaust Emissions from Diesel Trucks and Buses and Control of Sulfur in Diesel Fuel

       Diesel engines used in motor vehicles are a major source of nitrogen oxides and particulate
matter, both of which contribute to serious health problems  in the United States.  By 2007, we
estimate that heavy-duty engines used in trucks and buses, which primarily are diesel-powered, will
account for significant portions of mobile source NOx and PM emissions.
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       This rulemaking will address the need for more stringent heavy-duty NOx and PM engine
standards and the need for reductions in the sulfur content of highway diesel fuel. Low sulfur diesel
fuel will be needed to enable effective advanced emission control technology on future diesel
engines. There are also additional air quality benefits, such as sulfate particulate matter reductions
in the existing fleet, associated with reducing sulfur levels in diesel fuel. This rulemaking is in a
very early stage of development; related cost and benefit estimates are not yet available.

Non-road Engines and Diesel Fuel

      Several years ago, EPA established the first emission standards for large diesel engines used
in non-road application, such as construction and agricultural equipment. It may be possible to apply
emission control technology being developed for highway diesel vehicles to these non-road engines.
Therefore, in FY 2000, EPA expects to begin rulemaking to propose more stringent NOX and PM
standards for future diesel engines used in construction and agricultural equipment. In addition, EPA
will evaluate the need for cleaner diesel fuel used in these non-road engines.  EPA intends to issue
a proposal for public review and comment in the latter half of FY 2000 and a final rale in FY 2001 .
Quantitative estimates of costs and benefits are not yet available,

Automobile and yht-Dut  Tmck Manufacturin  Surface
       This action will result in the reduction of HAPs and VOCs emitted by the automobile and
light-duty track manufacturing industry. The major HAPs emitted from surface coating operations
include ethylene glycol rnonobutyl ether, methyl ethyl ketone, methyl isobutyl ketone, toluene, and
xylene, among others. There are approximately 60 automobile and light-duty truck assembly plants
in the U.S. This project is in the data analysis phase; thus, quantitative estimates of costs and
benefits are not available at this time.

NAAOS: Sulfur Dioxide (Review and Implementation!

       The EPA published its final decision not to revise the primary SC>2 national ambient air
quality standard (NAAQS) on May 22, 1 996. In July 1 996, the American Lung Association and the
Environmental Defense Fund petitioned the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit)
for judicial review of EPA's decision not to establish a new 5-minute NAAQS. On January 30,1 998,
the D.C. Circuit found that EPA did not adequately explain its May 22, 1 996 decision and remanded
the case to EPA.  EPA published a schedule for responding to the remand hi the May 5,  1998
Federal Register. The schedule calls for a final response to the remand by December 2000.

       On March 7, 1 995, the EPA proposed three alternative implementation strategies for reducing
high 5-mimite sulfur dioxide (SO2) concentrations in the ambient air. In May, 1996, in lieu of the
three alternative  implementation strategies  proposed in 1995,  the  EPA proposed  a  new
implementation strategy — the Intervention Level Program B to assist States in addressing short-term
SO2 peaks on January 2, 1997. This program also addresses EPA's concern that a segment of the
asthmatic population may be at increased health risk when exposed to 5-minute peak concentrations
                                        SA-38

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of S(>? in the ambient air while exercising. Any final action on the intervention level program would
occur no sooner than December 2000.

       It is important to note that costs are not considered during the standard setting process.
However, as required by Executive Order 12866, estimates of costs and benefits associated with this
decision will be made available at the time of proposal.

NAAOS: Carbon Monoxide Review

       On August 1,1994, the EPA published a final decision that revisions of the national ambient
air quality standards (NAAQS) for carbon monoxide (CO) were not appropriate at that tune (59 FR
38906). The EPA initiated the next periodic review of the CO NAAQS with a revision of the air
quality Criteria Document (CD) in 1998. The CO CD was reviewed by the Clean Air Scientific
Advisory Committee (CAS AC) and public in June 1999 and again in November 1999 when CAS AC
voted to accept the CD with minimal changes. The EPA's Office of Air and Radiation is preparing
a Staff Paper for the Administrator that will evaluate the most policy relevant information in the CD
and identify critical issues that should be considered in reviewing the standards. The Staff Paper will
be reviewed by the CASAC and the public.  As the  CO NAAQS review is completed, the
Administrator's proposal to revise or reaffirm the CO NAAQS will be published in the Federal
Register with a request for public comment. Input received during the public comment period will
be reflected in the Administrator's final decision which is scheduled to be published in Spring of
2001.

       Costs are not considered during the standard  setting process.  However, as required by
Executive Order 12866, estimates of costs and benefits associated with EPA's decision will be made
available at the tune  of proposal.

NAAQS: Particulate Matter Review

       In July 1997, the EPA published a final rule revising the national ambient  air quality
standards (NAAQS) for participate matter (PM) (62 FR  38652). As part of this action, new fine
particle (PM2.5) standards were added to the suite of PM NAAQS to provide increased protection
against both the health and environmental effects of PM. The EPA's plans and schedule for the next
periodic review of the PM NAAQS were published on October 23, 1997 (62 FR 55201).  On May
14,1999, the United States Court of Appeals for the District of Columbia Circuit issued an opinion,
modified on October 29,1999, remanding the revisions on the grounds that Section 109 of the Clean
Air Act B as applied in setting these new public  health  standards B were unconstitutional  as an
improper delegation of legislative authority to the executive branch. The Court held further that the
classification scheme and attainment dates for the pre-existing primary 1-hour ozone standards hi
Subpart 2  of the Clean Air Act affect the Agency's ability to enforce the revised 8-hour ozone
standard; that EPA must consider whether ozone has a beneficial effect in reducing exposure to UVb
radiation, and if so, consider such effects in assessing ozone's net effects on health; and that PMjQ
was a poorly matched indicator for coarse parti culate pollution because PMj Q, as currently defined,
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includes fine particles (for which EPA has now set a separate standard). The Court did not question
the science EPA relied on or the process EPA used in revising the NAAQSs. EPA strongly disagrees
with this decision; for this reason, the Administration is seeking review by the Supreme Court of
the decision on the constitutional issue and EPA's ability to enforce the 8-hour standard.

       As with other NAAQS, reviews the next NAAQS review will include a rigorous assessment
of relevant scientific information. As the PM NAAQS review is completed, the Administrator's
proposal to revise or reaffirm the PM NAAQS will be published with a request for public comment.
Input received during  the public comment period will be reflected  in the Administrator's final
decision which will be published in July 2002. Costs are not considered during the standard setting
process. However, as required by Executive Order 12866, estimates of costs and benefits associated
with EPA's decision will be made available at the time of proposal.

NESHAP: Industrial/Commercial/Institutional Boilers

       The EPA has determined that industrial/commercial/institutional boilers  may be major
sources for emissions of one or more of the hazardous air pollutants (HAPs) listed in Section 112(b)
of the CAA. Boilers are widely used by almost all segments of U.S. industry to produce hot water
and steam for a variety of purposes related to industrial process operations and electricity generation.
 Although the exact number of boilers in use is not known, it is likely that tens-of-thousands are
currently operating, ranging in size from small residential and commercial units to large electric
utility steam generators.  Due to the number of affected facilities, the Agency has estimated the
annualized cost to be over $100 million.

NESHAP: Reciprocating Internal Combustion Engines (RICE)

       Stationary reciprocating internal combustion engines  are  used in  a wide  variety of
applications where mechanical work is performed using shaft power. These engines operate on the
same principles as common automotive 1C engines, converting fuel energy into shaft power. The
EPA has determined mat reciprocating internal combustion  engines may be major sources for
emissions of one or more of the hazardous air pollutants. The benefits and costs resulting from this
project are  not known as this time, however, it is expected that this rule could potentially be
economically significant.

Goal 2: Clean and Safe Water

NPDES Comprehensive Storm Water Phase II Regulations

       The Phase II NPDES storm water regulations expand the existing national program to storm
water discharges from small municipal separate storm sewer systems (MS4s) and construction sites
that disturb 1 to  5 acres.  The rule includes waiver provisions recognizing areas where certain
sources may not adversely impact water quality, but allows designation of other sources based on
a likelihood of localized adverse impact on water quality. The regulations also decrease the burden
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of the Phase I program by excluding from the NPDES program storm water discharges from Phase
I industrial facilities where there is "no exposure" of industrial activities or materials to storm water.
This rule establishes a cost effective, flexible approach for reducing environmental harm by storm
water discharges which are currently unregulated.

       EPA believes that the implementation of the six minimum measures for small municipal
separate storm sewer systems should significantly and cost-effectively reduce pollutants in urban
storm water.  Similarly, EPA believes that implementation of best management practices (BMPs)
at small  construction sites will  cause a significant reduction in pollutant discharges and an
improvement in surface water quality. EPA estimates that the rule  will result in an annual cost of
$847.6 million in 1998 dollars, EPA expects significant monetized financial, recreational and health
benefits (ranging from $671.5.2 to $1,628.5 million annually in 1998 dollars), as well as benefits that
may not be fully captured in the monetized estimates. These include reduced scouring and erosion
of streambeds, improved aesthetic quality of waters, reduced eutrophication of aquatic systems,
benefit to wildlife and endangered and threatened species, tourism benefits, biodiversity benefits and
reduced costs for dredging siting reservoirs.  In addition, the costs of industrial storm water
management associated with the Phase I program will decrease by $317 million to $1.86 billion
annually (in 1998 dollars) due to the exclusion of facilities that have storm water discharges where
there is "no exposure" of storm water to industrial activities and materials.

Effluent limitations guidelines for the Metal Products and Machinery (MP&M) Industry

       This regulation will apply to facilities that manufacture, rebuild, or maintain finished metal
parts, products, or machines.  The proposed rule will apply to facilities in nearly 20 industrial
categories such as aircraft, electronic equipment, motor vehicle, and office machine. This discussion
of the costs and  benefits for the proposed rule are based largely on a rule proposed earlier that
covered some, but not all, of the industrial categories. Additional estimates of costs and benefits are
underway, and they will be a critical part of EPA's regulatory development during FY2000. EPA
expects environmental benefits to water quality and human health from a reduction in pollutant
discharges. These reductions are likely to result in monetized benefits from reduced incidence of
cancer, increased recreational fishing, and reduced sludge disposal  costs. Other expected benefits
include reduced risks to aquatic life. Compliance costs to the regulated community, which could
encompass more than 30,000 facilities, are likely to exceed $100 million annually.  EPA plans to
issue this proposed rale in October 2000 and the final rale in December 2002.

National Primary Drinking Water Regulations: Ground Water Rule

       The Safe Drinking Water Act as amended in 1996 directs EPA to promulgate regulations
requiring disinfection "as necessary" for ground water systems. The intention is to reduce microbial
contamination risk from public water systems relying on groundwater.  To determine if treatment
is necessary,  the rule will establish a framework to identify public water supplies vulnerable to
microbial contamination and to develop and implement risk control strategies that may include
disinfection.  From a public health perspective, the Ground Water Rule will reduce  both endemic
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levels and outbreaks of illness. The economic analyses for this rule are still under development; we
expect this will be a major rule.  EPA plans to propose this rule in April 2000 and to promulgate it
in January 200 L

National Primary Drinking Water Regulations: Arsenic

      SDWA directs EPA to establish an enforceable maximum contaminant level (MCL) as close
to the health-based maximum contaminant level goal (MCLG) as feasible, considering treatment
efficacy and costs, unless the benefits of a standard set at this level would not justify the costs, in
which case EPA may set a standard for the contaminant that maximizes health reduction benefits at
a cost that is justified by the benefits. EPA must list affordable technologies or treatment techniques
that achieve compliance with the MCL for three categories of small systems considering the quality
of the source water. Furthermore, alternatives to central treatment, such as point-of-use and point-of-
entry devices, have been evaluated for use by small systems that maintain control over operation and
maintenance.  At the time of proposal, EPA must seek comment on its analyses  of costs of
compliance and health risk reduction benefits likely to occur as the result of treatment to comply
with the proposed MCL and any alternatives being considered. The specifics of the cost-benefit
analyses for arsenic are still under development at this time. However, the annual cost of this rule
is expected to exceed the $ 100 million benchmark for economic significance. EPA plans to propose
this rule in May 2000 and promulgate it in January 2001.

National Primary Drinking Water Regulations: Radon

      Pursuant to the Safe Drinking Water Act as amended in 1996, EPA is required to: (1)
withdraw the 1991 proposed radon in drinking water rule; (2) work with the National Academy of
Sciences to conduct a risk assessment for radon in drinking water and assess the health risk reduction
benefits associated with various mitigation methods of reducing radon in indoor air; (3) publish a
radon health risk reduction and cost analysis for possible radon Maximum Contaminant Levels
(MCLs) for public comment, by February,  1999; (4) propose a Maximum Contaminant Level Goal
(MCLG) and National Primary Drinking Water Regulation (NPDWR) for radon by August, 1999;
and (5) publish an MCLG and Final NPDWR for radon by August, 2000,

      The unique framework  for the proposed regulations,  outlined  in the  1996 SDWA
Amendments, recognizes that the public health problem from radon in indoor air typically far
exceeds the health risks from radon in drinking water and that targeting indoor radon exposures is
the most cost-effective way for states to reduce radon health risks. The proposed new regulation will
provide two options to states and water systems for reducing public health risks from radon. Under
the first option,  states can choose to develop enhanced state programs to address the health risks
from indoor radon while water systems  reduce radon  levels in drinking water to the Mgher,
alternative maximum contaminant level (MCL) of 4,000 pCi/L (picoCuries per liter, a standard unit
of radiation) or lower, ensuring protection from the highest risks from radon in drinking water. EPA
is encouraging the states to adopt this approach as the most cost-effective way to achieve the greatest
radon risk reduction. If a state does not elect this  option, the second option would require water


                                        SA-42

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systems in that state to either reduce radon in drinking water levels to the MCL (300 pCi/1), or to
develop a local indoor radon program and reduce levels in drinking water to 4000 pCi/L. Those
systems initially at the MCL or lower will not need to treat their water for radon.

       The total annual costs of compliance with the proposal MCL of 300 pCi/1 for radon in
drinking water is estimated at $407 million in 1997 dollars.  In complying with 300 pCi/1, an
estimated 62.0 fatal and 3.6 non-fatal cancer cases are avoided each year. Because EPA expects that
most States and systems will choose to comply with the AMCL of 4,000 pCi/1 and implement a
multimedia mitigation (MMM) program, EPA expects the total annual costs of compliance with the
radon rale to be significantly less than $407 million. If most States and systems comply with the
Alternative Maximum Contaminant Level (AMCL) and implement a MMM program, the total
annual costs of compliance are estimated at approximately $80 million. The quantifiable benefits of
health risk reduction are estimated at $362 million annually for either implementation scenario..
EPA expects compliance with the AMCL and implementation of a MMM program to achieve equal
or greater risk reduction than is expected with strict compliance with the MCL. EPA proposed this
rale in November 1999 and plans to promulgate it in August 2000.

National PrimaryDrinkingWater Regulations: Long-Term 1 Enhanced Surface WaterTreatment
(LTlESWD and Filter Backwash Rule

       The LT1ES WT and Filter Backwash rule accomplishes two goals. The first is to extend the
Interim Enhanced Surface Water Treatment Rule, regulating Cryptosporidium and other microbial
contaminants, to small systems (those serving less than 10,000 people). The second is to govern the
recycling of filter backwash.  Originally separate rules, a decision was made to develop and
promulgate these as a single rule. The combining of these two rules into a single rale likely puts the
annual cost above the $ 100.0 million benchmark for economic significance. The economic analyses
for this rule are still under development; we expect this will be a major rule. The statutory deadline
for promulgation of LT1 is November 2000.  The statutory deadline for promulgation of Filter
Backwash is August 2000.

National Primary Drinking Water Regulation: Long-Term 2 Enhanced Surface Water Treatment
(LT2ES WD Rule and Stage 2 Disinfectant/Disinfectant Byproducts

       The LT2ESWT rale is being developed in conjunction with the Stage 2 D/DBP rule. The
Agency' s work on these two rules will include an expanded focus on risk analysis to determine what
are the most significant risks and the acceptable balance among competing risks. For instance, while
disinfectants are effective in reducing microbial risk, they react with natural organic matter in the
water to form DBPs.  Several of the DBPs have been shown to cause adverse health effects in
laboratory  animals.   The  optimal  balance  will adequately control  risks  from  pathogens,
simultaneously control DBPs to acceptable levels, and ensure  that costs of water treatment are
commensurate with public health benefits. The cost-benefit analyses for these two rules are still
under development at this time, however, preliminary estimates show that the cost of each of these
                                        SA - 43

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rules may exceed the $ 100 million benchmark for economic significance. Each will be a major rule.
Proposal of these rules is expected in February 2001.

Goal 4: Preventing Pollution in Communities Homes and Workplaces

Lead: TSCA Section 403: Identification of Dangerous Levels of Lead (Final Rule 09/00).

       TSCA section 403 requires EPA to promulgate regulations that identify lead-based paint
hazards, lead-contaminated dust and lead-contaminated soil. EPA developed an interim guidance
document in July 1994, to provide public and private decision-makers with guidance on identifying
and prioritizing lead-based paint hazards for control. This interim guidance, which was subsequently
published hi 1995, will continue to serve as EPA's official policy until the final TSCA section 403
rule is promulgated. In 1998, EPA proposed the TSCA Section 403 Rule. Although the proposed
rule did not impose direct requirements, based on the use of the 403 standards in other regulations,
EPA estimated the costs associated with the establishment of these levels in a draft economic impact
analysis that was prepared for the proposed rule. The analysis estimated the aggregate cost over a
50 year time span to be $53 billion (1995 dollars).  A quantitative benefits assessment has not yet
been performed. The benefits of these rules will be in the form of reduced prevalence and severity
of lead poisoning in children. OMB made a determination that this action is economically significant.

Goal 7: Community Right-to-Know

TRI: Reporting Threshold Amendment: Toxic Chemicals Release Reporting: Community Right-to-
Know (Final Action 10/99X

       The final rule was published in October 1999. The rule lowers the TRI reporting thresholds
for PBT chemicals and adds certain other PBT chemicals to the section 313 list of toxic chemicals.
Currently, facilities that manufacture or process less than 25,000 pounds or otherwise use less than
10,000 pounds of a listed chemical in a given year do not need to report their chemical releases under
TRI. Lowering these thresholds for PBTs will assure reporting on a larger fraction of these releases.
This action is important, not only because PBTs are toxic, but also because they remain in the
environment for long periods of time and accumulate in body tissue. Relatively small releases of
PBT chemicals can pose human and environmental health threats. These chemicals  warrant
recognition by communities as potential health threats and as such need to be captured by the TRI
Right-to-know Program.

       The existing  reporting thresholds do not adequately  insure the public has  access to
information about the quantities of these PBT chemicals which enter their communities from local
industrial facilities. Facilities that manufacture, process and/or use PBT chemicals are not reporting
many of the releases and other waste management associated with these chemicals. By lowering the
existing thresholds, EPA believes the public will have access to basic environmental data about these
chemicals.
                                        SA-44

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       EPA's action lowers the reporting thresholds for certain PBT chemicals. EPA's final rule
adds a category of dioxin and dioxin-like compounds to the EPCRA Section 313 list of chemicals
and establishing a 0.1 gram reporting threshold for the category. In addition, this rule adds certain
other PBT chemicals to the EPCRA Section 313 list of toxic chemicals and establishes lower
reporting thresholds. Under this rule the estimated aggregate industry cost for the first year is $ 145
million and for subsequent years is $80 million (in 1998 dollars).
                                        SA-45

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     STATE and TRIBAL ASSISTANCE GRANTS (STAG)
                     Dollars in Thousands

STATE/TRIBAL GRANT ASSISTANCE
State/Tribal Grant Total
INFRASTRUCTURE ASSISTANCE
Clean Water State Revolving Fund
Drinking Water State Revolving Fund
Consolidated State Revolving Fund
Mexican Border Projects
- Mexican Border
Special Needs Projects
1 . Boston Harbor
2. Bristal County, MA
3. New Orleans, LA
4. Alaskan Native Villages
Needy Cities Projects
Clean Air Partnership Fund
Infrastructure Total
FY1999
Enacted
$880,000.0
$1,350,000.0
$775,000.0
$2,125,000.0
$50,000.0
$50,000.0
$89.135.0
$50,000.0
$2,610.0
$6,525.0
$30,000.0
$263,915.0
N/A
$2.528,050.0
FY 2000
Pres Budget
$884.957.0
$800,000.0
$825.000.0
$1,625,000.0
$100.000.0
$100,000.0
$28,000.0
$0.0
$3,000.0
$10,000.0
$15,000.0
$0.0 ::
$200,000.0
$1,953,000.0
FY 2000
Enacted w/
.38% Recision
$885,000.0
$1,345,421.3
$820.000.0
$2,165,421.3
$50,000.0
$50,000.0
$35,800.0
$0.0
$2,000.0
$3,800.0
$30,000.0
$309,544.0
$0.0
$2,560,765.3
FY2001
Pres Budget
$1.068.957.0
$800,000.0
$825,000.0
$1,625,000.0
$100.000.0
$100,000.0
$28,000.0
$0.0
$3,000.0
$10,000.0
$15,000.0
$0.0
$85,000.0
$1,838,000.0
Difference
FY 00 Enacted
vs. FY01 PB
$183,957.0
($545,421.3)
$5,000.0
($540,421.3)
$50,000.0
$50,000.0
($7,800.01
A $0.0
$1,000.0
$6,200.0
($15,000.0)
($309,544.0)
$85,000.0
($722,765.3)
GRAND TOTALS
$3,408,050.0
$2,837,957.0
$3,445,765.3
$2,906,957.0
($538,808.3)
                                         SA -46

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                                    CATEGORICAL PROGRAM GRANTS (STAG)
                                              Dollars in Thousands
              Grant
Air & Radiation

State and 'Local Assistance
Tribal Assistance
Radon
Great Lakes
Pollution Control (Section 106)
Nonpoint Source
Wetlands Program Development
Water Quality Cooperative Agrmts
Drinking Water

PWSS
UIC
Hazardous Waste

H.W. Financial Assistance
Underground Storage Tanks
Pesticides & Toxics

Pesticides Program Implementation
Lead
Toxic Substances Compliance
Pesticides Enforcement
Multimedia

Information Integration Initiative
Pollution Prevention
Enforcement & Compliance Assurance
Indian General Assistance Program
TOTALS
FY1999
ENACTED
$195,533.0
$11,068.8
$214,759.8
$0,0
$115,529.3
$200,000.0
$15,000.0
$19,000.0
$349,529.3
$93,780.5
$10,500.0
$104,280.5
$98,598.2
$10.544.7
$109,142.9
$13,114.6
$13,712.2
$5,150.0
$19.511.7
$51,488.5
$0.0
$5,999.5
$2,214.2
S42.585.3
$50,799.0
FY2000
PRES BUD"1
$198,690.0
$11,068.8
$217,916,8
$0.0
$115,529.3
$200,000.0
$15,000.0
$19,000.0
$349,529.3
$93,780.5
$10,500.0
$104,280.5
$98,598.2
$11.944.7
$110,542.9
$13,114.6
$13,71.2.2
$5,150.0
$19,911.6
$51,888.4
$0.0
$5,999.5
$2,214.2
$42.585.4
$50,799.1
FY2000
ENACTED
$198,690.0
$11,068.8
"$217,916.8
$0.0
$115,529.3
$200,000.0
$15,000.0
$19,000.0
$349,529.3
$93,305.5
$10.975.0
$104,280.5
$98,598.2
$11,944.7
$1 1 0,542.9
$13,114.6
$13,712.2
$5,150.0
$19,911.6
$51,888.4
$0.0
$5,999.5
$2,214.2
$42.628.4
$50,842.1
FY 2001
PRES BUD
$203,690.0
$11,068.8
$8.158.0
$222,916.8
$50,000.0
$160,529.3
$250,000.0
$15,000.0
$19.000.0
$494,529.3
$93,305.5
$10.975.0
$104,280-5
$106,598.2
$11.944.7
$118,542.9
$13,114.6
$13,712.2
$5,150.0
$19,911.6
$51,888.4
$16,000.0
$5,999.5
$2,214.2
$52,585.4
$76,799.1
Difference
FY 00 Enacted
vs. FY01 P.B
$5,000.0
$0.0
$0.0
$5,000.0
$50,000.0
$45,000.0
$50,000.0
$0.0
SO.O
$145,000.0
$0.0
SO.O
$0.0
$8,000.0
SO.O
$8,000.0
SO.O
$0.0
$0.0
$0.0
$0.0
$16,000.0
$0.0
$0.0
$25,957.0
$880,000.0
$884,957.0
$885,000.0
$1,068,957.0
$183,937.0
                                                              SA -  47

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FY 2000 STAG CATEGORICAL PROGRAM GRANTS




           (Dollars in Thousands)
Grant-Title


Air Resource
Assistance



Air Resource
Assistance




















Statutory
Authority [ies]

Clean Air Act,
§103



Clean Air Act,
Sections 103, 105,
106



















Eligible Recipients*


Air pollution control
agencies as defined in
section 302(b) of the CAA


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 1 84
NOTE: only the Ozone
Transport Commission is
eligible as of 2/1/99
Eligible Uses


S/L monitoring and data
collection activities in support of
the establishment of a PM2 s
monitoring network and
associated program costs.
Carrying out the traditional
prevention and control programs
required by the CAA and
associated program support
costs; Coordinating or
facilitating a mu|ti-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







FY2000
Enacted

$42,500,0




$156,190,0





















FY2Q01
Request

$42,500.0




161,190,0





















FY2D01
Goal/
Objective
Goal 1,
Obj. 1



Goal 1,
Obj. All




















                SA-48

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Grant Title
Air Tribal
Assistance
Radon
Great Lakes
Water Pollution
Control Agency
Resource
Supplement-ation
Statutory
Authorityfies]
Clean Air Act,
Sections 103 and
105
Toxic Substances
Control Act,
Sections 10 and
306; FY2000
Appropriations Act
(P.L 106-74)
FY2001 VA-HUD-
Independent
Agencies
Appropriations Bill
FWPCA, as
amended, § 1 06
Eligible Recipients*
Tribes; Intertribal
Consortia; State/ Tribal
college or university
State Agencies, Tribes,
Intertribal Consortia
States, Local
Governments, Interstate
Organizations
States, Tribes and
Intertribal Consortia, and
Interstate Agencies
Eligible Uses
Conducting air quality
assessment activities to
determine a tribe's need to
develop a CAA program;
Carrying out the traditional
prevention and control programs
required by the CAA and
associated program costs;
Supporting training for CAA for
federally recognized tribes
Assist in the development and
implementation of programs for
the assessment and mitigation of
radon
To conduct cleanup actions to
improve water quality in Great
Lakes Areas of Concern located
within the U.S. or within shared
U.S. Canadian waters.
Develop and carry out surface
and ground water pollution
control programs, including
NPDF.S permits, TMDL's, WQ
standards, monitoring, NPS
control and UWA activities.
FY 2000
Enacted
$11,068.8
$8,158.0
N.A.
$115,529.3
FY2001
Request
$11,068.8
$8,158.0
$50,000.0
$160,529.3
FY2001
Goal/
Objective
Goal 1,
Obj. 1
Goal 1,
Obj. 2
Goal 4,
Obj. 4
Goal 2, Obj.
2
Goal 2,
Obj. 2
SA-49

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Grant Title


Nonpoint Source
(NFS)



Wetlands Program
Development



Water Quality
Cooperative
Agreements




Public Water
System Supervision
(PWSS)



Underground
Injection Control
[UIC]


Statutory
Aulhority[ies]

FWPCA, as
amended,
§319(h)


FWPCA, as
amended,
§104(b)(3)


FWPCA, as
amended,
§104(b)(3)




Safe Drinking
Water Act,
§1443(a)



Safe Drinking
Water Act, §
1443(b)


Eligible Recipients*


States, Tribes, Intertribal
Consortia



States, Local
Governments, Tribes,
Interstate Organizations,
Intertribal Consortia, and
Non-Profit Organizations
States, Local
Governments, Tribes,
Non-Profit Organizations,
Intertribal Consortia, and
Interstate Organizations


States, Tribes, and
Intertribal Consortia




States, Tribes, Intertribal
Consortia



Eligible Uses


Implement EPA-approved State
and Tribal nonpoint source
management programs and fund
priority projects as selected by
the State.
To develop new wetland
programs or enhance existing
programs for the protection,
management and restoration of
wetland resources.
Creation of unique and
innovative approaches to
pollution control and prevention
requirements associated with wet
weather activities, AFOs,
TMDLs, and source water
protection.
Assistance to implement and
enforce National Primary
Drinking Water Regulations to
ensure the safety of the Nation's
drinking water resources and to
protect public health.
Implement and enforce
regulations that protect
underground sources of drinking
water by controlling Class I- V
underground injection wells.
FY2000
Enacted

$200,000.0




$15,000.0




$19,000.0






$93,305,5





$10,975,0




FY2001
Request

$250,000.0




$15,000.0




$19,000.0






$93,305.5





$10,975.0




FY200I
Goal/
Objective
Goaf 2,
Obj.3



Goal 2,
Obj.2



Goal 2,
Obj.2





Goal 2,
Obj.l




Goal 2,
Obj. 1



SA - 50

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Grant Title


Hazardous Waste
Financial
Assistance




Underground
Storage Tanks
[UST]





Pesticides Program
Implementation














Statutory
Authority[ies]

Resource
Conservation
Recovery Act,
§3011;
FY 1999
Appropriations Act
(PL 105-276)
Resource
Conservation
Recovery Act
Sections 8001 and
2007(f) and
FY 1999
Appropriations Act
(PL 105-276)
The Federal
Insecticide,
Fungicide, and
Rodenticide Act §
20&23; theFY
1999
Appropriations Act
(PL 105-276); FY
2000
Appropriations Act
(P.L, 106-74)





Eligible Recipients*


States, Tribes, Intertribal
Consortia





State, Tribes and
Intertribal Consortia






States, Tribes and
Intertribal Consortia














Eligible Uses


Development & Implementation
of Hazardous Waste Programs





Demonstration Grants,
Surveys and Training;
Develop •& implement UST
program




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.
FY 2000
Enacted

$98,598.0






$11,944.7







$13,114.6















FY2001
Request

$106,598,2






$11,944.7







$13,114.6















FY2001
Goal/
Objective
Goal 4,
Obj. 6
Goal 5,
Obj.l &2
Goal 9,
Obj. 1

Goal 5,
Obj.2






Goal 4,
Obj, 1














SA - 51

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Grant Title


Lead






Toxic Substances
Compliance
Monitoring**

Pesticide
Enforcement



Statutory
Authority[ies]

Toxic Substances
Control Act,
§ 404 (g); TSCA
10; FY2000
Appropriations Act
(P.L. 106-74)

Toxic Substances
Control Act, §28(a)
and 404 (g)

F1FRA
§23(a)(l);FY
2000
Appropriations Act
(P.L, 106-74)
Eligible Recipients*


States, Tribes, Intertribal
Consortia





States, Territories, Tribes,
Intertribal Consortia


States, Territories, Tribes,
Intertribal
Consortia


Eligible Uses


To support and assist states and
tribes to develop and carry out
authorized state lead abatement
certification, training and
accreditation programs; and to
assist tribes in development of
lead programs.
Assist in developing and
implementing toxic substances
enforcement programs for PCBs,
asbestos, and lead-based paint
Assist in implementing
cooperative pesticide
enforcement programs


FY 2000
Enacted

$13,712.2






$5,150.0



$19,911.6




FY2001
Request

$13,712.2






$5,150.0



$19,911.6




FY2001
Goal/
Objective
Goal 4,
Obj.2





Goal 9,
Obj. 1


Goal 9,
Obj. 1



SA-52

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Grant Title


Information
Integration
























Pollution
Prevention




Statutory
Authorityfies]

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
Pollution
Prevention Act of
1990, §6605;
TSCA 10; FY2000
Appropriations Act
(P.L. 106-74)
Eligible Recipients*


States, Tribes, Intertribal
Consortia, Interstate
Agencies























States, Tribes, Intertribal
Consortia




Eligible Uses


To support and assist State and
Tribes with integrating
environmental information
systems.






















To assist state and tribal
programs to promote the use of
source reduction techniques by
businesses and to promote other
P2 activities at the state and
tribal levels.
FY 2000
Enacted

N.A.

























$5,999.5





FY2001
Request

$16,000.0

























$5,999.5





FY2001
Goal/
Objective
Goal?
Obj. 1
























Goal 4,
Obj. 5




SA-53

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Grant Title


Enforcement &
Compliance
Assurance**




















Indian General
Assistance Program



Statutory
Authority [ies]

As appropriate,
Clean Air Act, Sec,
103; Clean Water
Act, Sec. 104; Solid
Waste Disposal
Act, Sec. 8001;
FIFRA, Sec 20;
TSCA,See. 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)
Indian
Environmental
General Assistance
Program Act of
1992, as amended.
Eligible Recipients*


State, Territories, Tribes,
Intertribal Consortia,
Multi-jurisdictional
Organizations



















Tribal Governments and
Intertribal Consortia



Eligible Uses


Assist in developing innovative
sector-based, multi-media, or
single-media approaches to
enforcement and compliance
assurance


















Plan, develop and establish
Tribal environmental protection
programs.


FY 2000
Enacted

$2,214.2






















$42,628.4




FY2001
Request

$2,214.2






















$52,585.4




FY2001
Goal/
Objective
Goal 9,
Obj.2





















Goal 4,
Obj7



* The Recipients listed in this column reflect assumptions in the FY2001 Budget Request in terms of expected and/or anticipated eligible recipients. Recipients listed
for the new Great Lakes grants assumes action by Congress.

** In prior years these grants were displayed as Toxic Enforcement Grants.  They are both part of the Toxics Enforcment Key Program [ Goal 9, Objectives 1 and
2.]
                                                                   SA-54

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